-----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, MQp+G5QiYNhiDh/7MAkD5RdjV/9ickBqFzjFJ4SDaQR3IaxtLZowibLjdJki+dhn IZy3K9E4+6a/beazqs0ZSw== 0000950149-02-000402.txt : 20020415 0000950149-02-000402.hdr.sgml : 20020415 ACCESSION NUMBER: 0000950149-02-000402 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20011231 FILED AS OF DATE: 20020301 FILER: COMPANY DATA: COMPANY CONFORMED NAME: COLUMBIA BALANCED FUND INC /OR CENTRAL INDEX KEY: 0000876613 IRS NUMBER: 931062672 STATE OF INCORPORATION: OR FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-06338 FILM NUMBER: 02563451 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 FORMER COMPANY: FORMER CONFORMED NAME: COLUMBIA BALANCED FUND INC /OR/ DATE OF NAME CHANGE: 19920717 FILER: COMPANY DATA: COMPANY CONFORMED NAME: COLUMBIA FIXED INCOME SECURITIES FUND INC CENTRAL INDEX KEY: 0000707833 IRS NUMBER: 930824379 STATE OF INCORPORATION: OR FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-03581 FILM NUMBER: 02563452 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 FILER: COMPANY DATA: COMPANY CONFORMED NAME: COLUMBIA TECHNOLOGY FUND INC CENTRAL INDEX KEY: 0001124083 STATE OF INCORPORATION: OR FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-10159 FILM NUMBER: 02563453 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: 97201 FILER: COMPANY DATA: COMPANY CONFORMED NAME: COLUMBIA STRATEGIC VALUE FUND INC CENTRAL INDEX KEY: 0001124082 STATE OF INCORPORATION: OR FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-10161 FILM NUMBER: 02563454 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: 97207 FILER: COMPANY DATA: COMPANY CONFORMED NAME: COLUMBIA SMALL CAP FUND INC CENTRAL INDEX KEY: 0001016510 IRS NUMBER: 931213171 STATE OF INCORPORATION: OR FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-07671 FILM NUMBER: 02563455 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 FILER: COMPANY DATA: COMPANY CONFORMED NAME: COLUMBIA REAL ESTATE EQUITY FUND INC CENTRAL INDEX KEY: 0000916900 IRS NUMBER: 931131979 STATE OF INCORPORATION: OR FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-08256 FILM NUMBER: 02563456 BUSINESS ADDRESS: STREET 1: 1300 SW SIXTH AVE STREET 2: PO BOX 1350 CITY: PORTLAND STATE: OR ZIP: 97207 BUSINESS PHONE: 5032223600 MAIL ADDRESS: STREET 1: 1300 SW SIXTH AVE STREET 2: PO BOX 1350 CITY: PORTLAND STATE: OR ZIP: 97207 FILER: COMPANY DATA: COMPANY CONFORMED NAME: COLUMBIA HIGH YIELD FUND INC CENTRAL INDEX KEY: 0000908836 IRS NUMBER: 931117636 STATE OF INCORPORATION: OR FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-07834 FILM NUMBER: 02563457 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 FILER: COMPANY DATA: COMPANY CONFORMED NAME: COLUMBIA NATIONAL MUNICIPAL BOND FUND INC CENTRAL INDEX KEY: 0000908730 IRS NUMBER: 931117637 STATE OF INCORPORATION: OR FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-07832 FILM NUMBER: 02563458 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: 97207 FILER: COMPANY DATA: COMPANY CONFORMED NAME: COLUMBIA INTERNATIONAL STOCK FUND INC CENTRAL INDEX KEY: 0000889421 IRS NUMBER: 931089960 STATE OF INCORPORATION: OR FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-07024 FILM NUMBER: 02563459 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 FILER: COMPANY DATA: COMPANY CONFORMED NAME: COLUMBIA COMMON STOCK FUND INC CENTRAL INDEX KEY: 0000876606 IRS NUMBER: 931062673 STATE OF INCORPORATION: OR FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-06341 FILM NUMBER: 02563460 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 FILER: COMPANY DATA: COMPANY CONFORMED NAME: COLUMBIA SHORT TERM BOND FUND INC CENTRAL INDEX KEY: 0000801962 IRS NUMBER: 930930245 STATE OF INCORPORATION: OR FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-04842 FILM NUMBER: 02563461 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 FORMER COMPANY: FORMER CONFORMED NAME: COLUMBIA U S GOVERNMENT SECURITIES FUND INC DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: COLUMBIA U S GOVERNMENT GUARANTEED SECURITIES FUND INC DATE OF NAME CHANGE: 19920219 FILER: COMPANY DATA: COMPANY CONFORMED NAME: COLUMBIA SPECIAL FUND INC CENTRAL INDEX KEY: 0000773599 IRS NUMBER: 930896403 STATE OF INCORPORATION: OR FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-04362 FILM NUMBER: 02563462 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 FILER: COMPANY DATA: COMPANY CONFORMED NAME: COLUMBIA OREGON MUNICIPAL BOND FUND INC CENTRAL INDEX KEY: 0000741558 IRS NUMBER: 930866151 STATE OF INCORPORATION: OR FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-03983 FILM NUMBER: 02563463 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 FILER: COMPANY DATA: COMPANY CONFORMED NAME: COLUMBIA GROWTH FUND INC CENTRAL INDEX KEY: 0000022105 IRS NUMBER: 930560559 STATE OF INCORPORATION: OR FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-01449 FILM NUMBER: 02563464 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 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-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-02507 FILM NUMBER: 02563465 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-30D 1 f78378an-30d.txt COLUMBIA FUNDS ANNUAL REPORT DATED 12/31/2001 [COLUMBIA LOGO] COLUMBIA FUNDS 2001 ANNUAL REPORT COLUMBIA COMMON STOCK FUND COLUMBIA GROWTH FUND COLUMBIA INTERNATIONAL STOCK FUND COLUMBIA SPECIAL FUND COLUMBIA SMALL CAP FUND COLUMBIA REAL ESTATE EQUITY FUND COLUMBIA TECHNOLOGY FUND COLUMBIA STRATEGIC VALUE 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 TABLE OF CONTENTS - -------------------------------------------------------------------------------- COLUMBIA FUNDS ANNUAL REPORT DECEMBER 31, 2001 INTRODUCTION 1 TO OUR SHAREHOLDERS - ----------------------------------------------------------------------------- INVESTMENT 4 COLUMBIA COMMON STOCK FUND REVIEWS 6 COLUMBIA GROWTH FUND 8 COLUMBIA INTERNATIONAL STOCK FUND 10 COLUMBIA SPECIAL FUND 12 COLUMBIA SMALL CAP FUND 14 COLUMBIA REAL ESTATE EQUITY FUND 16 COLUMBIA TECHNOLOGY FUND 18 COLUMBIA STRATEGIC VALUE FUND 20 COLUMBIA BALANCED FUND 22 COLUMBIA SHORT TERM BOND FUND 24 COLUMBIA FIXED INCOME SECURITIES FUND 26 COLUMBIA NATIONAL MUNICIPAL BOND FUND 28 COLUMBIA OREGON MUNICIPAL BOND FUND 30 COLUMBIA HIGH YIELD FUND 32 COLUMBIA DAILY INCOME COMPANY - ----------------------------------------------------------------------------- FINANCIAL 33 FINANCIAL HIGHLIGHTS INFORMATION 41 SCHEDULES OF INVESTMENTS 88 STATEMENTS OF ASSETS AND LIABILITIES 90 STATEMENTS OF OPERATIONS 92 STATEMENTS OF CHANGES IN NET ASSETS 94 NOTES TO FINANCIAL STATEMENTS 105 REPORT OF INDEPENDENT ACCOUNTANTS
COLUMBIA FUNDS Columbia Financial Center 1301 SW Fifth Avenue Portland, OR 97201-5601 1-800-547-1707 www.columbiafunds.com Front cover features a photograph of the 85-year-old Vista House, perched atop Crown Point at the mouth of the Columbia River Gorge. The photo was taken in Oregon, looking across to Washington State. TO OUR SHAREHOLDERS - -------------------------------------------------------------------------------- [ECONOMIC GROWTH CONTRACTS IN 2001 BAR GRAPH]
GDP GROWTH ---------- 1Q '00 2.30% 2Q '00 5.70% 3Q '00 1.30% 4Q '00 1.90% 1Q '01 1.30% 2Q '01 0.30% 3Q '01 -1.30% 4Q '01* 0.20%
- --------------- Source: U.S. Department of Commerce (quarters seasonally adjusted at annual rates) * Advance Estimate We are pleased to present the Columbia Funds 2001 Annual Report. In the following pages, you'll find detailed financial information on each Columbia Fund for the year ended December 31, 2001. We hope this information is helpful as you evaluate your investments with us. Before turning to your funds, we'd like to take a moment to recap the environment in which they performed. A LOOK BACK Deteriorating economic activity, disappointing stock performance, and a national tragedy marked the year 2001. As the year began, fears of an abrupt slowdown led the Federal Reserve Board ("the Fed") to aggressively lower short-term interest rates to encourage economic growth. The first rate cut came in a surprise announcement on the second trading day of the year, and the Fed cut rates another 10 times during the year. The federal funds rate reached its lowest level in 40 years, declining from 6.50% to 1.75%. Despite the Fed's actions, the economy continued to weaken, and the longest U.S. economic expansion in history ended in March. GDP growth was flat for the second quarter and contracted by 1.3% in the third quarter. Corporate earnings declined during the year, and businesses responded by attacking expenses, laying off workers and limiting overtime hours in an attempt to maintain profitability. Capital spending was particularly weak in the telecommunications and technology sectors, which had benefited the most from the boom times of the 1990s. Although consumer spending and the housing market held up surprisingly well, these areas alone could not keep the economy out of recession. With the terrorist attacks of 9/11, consumer confidence and spending slowed sharply, though they began to recover in the fourth quarter as the war on terrorism showed signs of progress and as economic indicators improved. STOCK MARKETS STRUGGLE Throughout the year, stocks experienced exceptional volatility, with small- and mid-cap stocks generally outperforming large-cap stocks. The Russell 2000 Index returned 2.49% for the year, while the S&P 500 Index posted a loss for the second consecutive year, declining 11.88%. The telecommunications, technology and utilities sectors posted the worst declines, while the basic industries, consumer cyclical and consumer staples sectors were solid performers. While growth stocks have underperformed value stocks since July 2000, a transition to growth leadership appeared to be underway in the market rally of the fourth quarter 2001. Finally, though the stock market's correction has been painful, valuations across many sectors have reached more attractive levels. 1 TO OUR SHAREHOLDERS - -------------------------------------------------------------------------------- [FED EASES RATES AGGRESSIVELY IN 2001 BAR GRAPH]
FED FUNDS RATE -------------- 16-May '00 6.50% 3-Jan '01 6.00% 31-Jan 5.50% 20-Mar 5.00% 18-Apr 4.50% 15-May 4.00% 27-Jun 3.75% 21-Aug 3.50% 17-Sep 3.00% 2-Oct 2.50% 6-Nov 2.00% 11-Dec 1.75%
Source: Federal Reserve Board BONDS EXCEL IN 2001 As the stock market floundered in 2001, the bond market rallied. The yield curve "steepened" as short-term rates declined sharply and long-term rates remained virtually unchanged. The Lehman Aggregate Bond Index returned 8.44% for the year, and investment-grade corporate issues posted the strongest returns. High yield bonds underperformed other fixed income sectors, with the Merrill Lynch U.S. High Yield, Cash Pay Index up 6.20%. Along the yield curve, 2- and 5-year Treasuries offered the best returns for the year, and performance of longer-term government bonds benefited from the U.S. Treasury's announcement that it would discontinue issuing the 30-year Treasury bond. A FOUNDATION FOR RECOVERY Despite the difficult year, we believe the foundation has been laid for a modest economic recovery in 2002 due to unprecedented monetary and fiscal stimulus. In the wake of the Fed's aggressive interest rate cuts, measures of the money supply are showing faster growth. The tax relief legislation approved in 2001 includes nearly $40 billion in tax reductions scheduled to take effect in 2002. Since the terrorist attacks of 9/11, Congress has also approved an emergency spending package. Additionally, consumer confidence has increased, energy prices are lower, housing prices are stable, and inflation is not an immediate problem. We expect businesses to be cautious during the first half of the year until it is clear that a recovery is underway. Once corporate confidence improves, capital spending should rebound and further propel the economy. OUR INVESTMENT STRATEGY We are positioning the Funds to take advantage of an improving economy. In the equity funds, we continue to emphasize our Beneficiaries of Policy Change investment theme, by focusing on sectors and companies that should benefit from expansive monetary and fiscal policy, as well as from economic growth. We are also seeking issues that are at the low end of their valuation range, can enhance fundamentals through restructuring or operational change, and have the potential for favorable earnings revisions. In the overall bond market, we expect interest rates to rise gradually as the economy improves. The Fed may be prompted to raise rates if it appears that growth is accelerating too rapidly. Treasury rates generally rise more rapidly than corporate and mortgage issues, which should result in narrowing yield spreads. Fixed income portfolios are underweighted in government bonds and Treasuries and overweighted in investment-grade corporate bonds, asset-backed securities and 2 TO OUR SHAREHOLDERS - -------------------------------------------------------------------------------- We will continue to work hard to navigate the markets to your benefit and minimize downside risk to the Funds. mortgage-backed securities. Finally, as the anticipated economic recovery unfolds, the high yield market should benefit from an improvement in corporate earnings. NEWS AT COLUMBIA We'd like to take this opportunity to share some news about Columbia Small Cap Fund, which has announced its intention to close to new investors on March 1, 2002. The Fund is closing in an effort to preserve the manager's ability to deliver competitive performance. Once assets reach a significant level, it becomes more challenging for an investment manager to run a small cap fund effectively. Since small cap companies tend to have small trading volumes, it can be difficult to buy and sell large blocks of stock without causing erratic or abrupt price movements. The Fund has grown steadily since its 1996 inception, thanks to competitive performance and strong cash flows. Consequently, the Fund's Board of Directors and Investment Team believe that closing the Fund is in the best interest of our current shareholders. For more information, please refer to the Columbia Funds 2002 Prospectus or visit www.columbiafunds.com. In other news, Columbia Technology Fund recently experienced a change in management. As of February 1, 2002, Steven Marshman has assumed the role of lead portfolio manager. Mr. Marshman has managed the Fund since its inception in 2000 with co-manager Chad Fleischman, who is pursuing other interests at Columbia. For more news about Columbia, visit www.columbiafunds.com. While online, check current Fund performance, market commentaries and investment calculators. You can also obtain secure access to your account information. To learn how, simply write to askcolumbia@columbiafunds.com, or call 1-800-547-1707 (weekdays, 7:30 a.m. to 5:00 p.m., Pacific Time) and an Investor Services Representative will be happy to assist you. Thank you for your continued confidence in Columbia. We look forward to serving you in the months and years ahead. Sincerely, /s/ Thomas L. Thomsen /s/ Jeff B. Curtis Thomas L. Thomsen Jeff B. Curtis Chairman and Chief Executive Officer President Columbia Funds Management Company Columbia Funds Management Company
February 2002 3 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- COLUMBIA COMMON STOCK FUND AVERAGE ANNUAL TOTAL RETURNS As of December 31, 2001
CCSF S&P 500 ------ ------------- 1 Year -17.60% -11.88% 5 Years 9.11% 10.70% 10 Years 12.31% 12.93%
GROWTH OF $10,000 OVER 10 YEARS [LINE GRAPH]
COLUMBIA COMMON STOCK FUND S&P 500 INDEX -------------------------- ------------- 12/31/91 10000.00 10000.00 12/31/92 10999.00 10762.00 12/31/93 12807.00 11847.00 12/31/94 13071.00 12003.00 12/31/95 17102.00 16514.00 12/31/96 20644.00 20306.00 12/31/97 25881.00 27080.00 12/31/98 32683.00 34819.00 12/31/99 41102.00 42145.00 12/31/00 38747.00 38305.00 12/31/01 31925.00 33750.00
- --------------- Past performance is not predictive of future results. The S&P 500 Index is an unmanaged index generally considered representative of the U.S. stock market. FUND PERFORMANCE The year 2001 proved to be challenging for Columbia Common Stock Fund, as the bear market that began in 2000 continued. Plagued by a recession, extremely poor corporate earnings and continued valuation compression, the year was capped by the unprecedented terrorist attacks on 9/11. Never before has Columbia's investment team had to debate the potential investment implications of further terrorist attacks. In this difficult investment environment, Columbia Common Stock Fund posted a return of -17.60%, lagging the S&P 500 Index's return of -11.88%. SECTORS AND HOLDINGS OF NOTE Despite poor market conditions, the finance, consumer cyclical, consumer staples, health care and transportation sectors all managed to perform well in 2001. A few of the Fund's best individual contributors included Bank of America, Baxter International and Abbott Laboratories. Coming into the year, Bank of America benefited from an attractive valuation and an above-average dividend yield, as well as from a positive fundamental backdrop of lower short-term interest rates and a "steepening" yield curve. Led by new CEO Ken Lewis, the company also began to concentrate on enhancing internal operations, as opposed to maintaining its traditional focus on acquisitions. This emphasis on value creation enhanced investor confidence throughout the year. Health care holding Baxter International benefited from accelerating revenue and earnings growth. A series of spin-offs of slow-growth, unpredictable businesses from 1996 to 2000 positioned Baxter for faster growth and better financial predictability. From a product perspective, Baxter has transformed its product mix from low-margin intravenous solutions to high-margin biological products. By delivering on CEO Harry Kramer's promises for higher revenue and mid-teens earnings growth during the year, Baxter solidified investor confidence and thus expanded the stock's valuation. Given its robust research and development pipeline, the company should continue to enjoy above-average growth. STRAINS ON THE PORTFOLIO Unfortunately, the gains posted by solid names in the portfolio were not enough to keep the Fund out of negative territory. The Fund suffered substantial declines in the technology sector, as well as in other areas of the portfolio. 4 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- If investors had any doubts about the cyclical nature of the technology sector, those quickly faded given the abysmal performance of many leading companies in 2001. High valuations and poor earnings seemed to torment the sector for most of the year. Toward the end of 2001, however, fundamentals appeared to have finally bottomed. Depending on the strength of the recovery anticipated in 2002, the sector appears to have better days ahead. In other areas, financial stock American Express, in contrast to Bank of America, entered 2001 with a relatively high valuation. The fundamentals for American Express, however, could not live up to Wall Street's lofty expectations. The company experienced problems in its high yield portfolio, asset management division, consumer credit card business and corporate charge card business. Just as one problem would retreat, another would come to the fore, causing a dramatic response from first year CEO Ken Chenault to restructure the company. We continue to hold American Express in the portfolio at year end, as we believe that company fundamentals are solid. In addition, an improving economy and restructuring efforts should help reclaim investor confidence in the stock. BENEFICIARIES OF POLICY CHANGE Throughout the year, the Fund emphasized the Beneficiaries of Policy Change investment theme. Although the theme was temporarily hampered by the events of 9/11, its performance in the fourth quarter confirms that a bias toward sectors positioned to benefit from an economic recovery should positively impact returns. We continue to focus on issues at the low end of their valuation range that have potential to show favorable earnings revisions. RECOVERY EXPECTED IN LATE 2002 We are optimistic that the significant monetary and fiscal stimulus packages in 2001 have set the stage for an economic recovery. In fact, many anecdotal pieces of evidence in recent months have only increased our confidence that an upturn could occur in late 2002. Barring another shock to the system like 9/11, economic growth should eventually turn into solid earnings growth for corporate America. Guy W. Pope On behalf of the Columbia Investment Team TOP TEN HOLDINGS % of Net Assets
12/31/01 6/30/01 -------- -------- Citigroup, Inc. 4.5 4.2 General Electric Co. 3.8 3.7 Pfizer, Inc. 3.5 4.9 Microsoft Corp. 3.2 3.5 Bristol-Myers Squibb Co. 3.0 -- Tyco International Ltd. 2.9 2.2 Intel Corp. 2.9 1.9 Baxter International, Inc. 2.7 2.4 Exxon Mobil Corp. 2.7 1.0 Wal-Mart Stores, Inc. 2.5 1.7
------------------------ TOP FIVE SECTORS % of Net Assets
12/31/01 6/30/01 -------- -------- Financial Services 19.0 17.6 Technology 17.0 16.8 Consumer Discretionary & Services 15.1 15.8 Health Care 14.9 13.4 Other/Multi-Sector Companies 10.5 8.5
5 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- COLUMBIA GROWTH FUND AVERAGE ANNUAL TOTAL RETURNS As of December 31, 2001
RUSSELL 1000 S&P CGF GROWTH 500 ------ ------- ------- 1 Year -21.40% -20.42% -11.88% 5 Years 8.47% 8.27% 10.70% 10 Years 11.72% 10.80% 12.93% 20 Years 14.62% 13.79% 15.21%
GROWTH OF $10,000 OVER 20 YEARS [LINE GRAPH]
COLUMBIA GROWTH FUND S&P 500 INDEX RUSSELL 1000 GROWTH -------------------- ------------- ------------------- 12/31/81 10000.00 10000.00 10000.00 12/31/82 14656.00 12150.00 12045.00 12/31/83 17801.00 14874.00 13970.00 12/31/84 16808.00 15790.00 13837.00 12/31/85 22198.00 20774.00 18383.00 12/31/86 23734.00 24646.00 21206.00 12/31/87 27233.00 25945.00 22332.00 12/31/88 30177.00 30239.00 24849.00 12/31/89 38955.00 39797.00 33775.00 12/31/90 37666.00 38583.00 33687.00 12/31/91 50570.00 50339.00 47552.00 12/31/92 56547.00 54175.00 49935.00 12/31/93 63904.00 59636.00 51383.00 12/31/94 63501.00 60423.00 52750.00 12/31/95 84444.00 83131.00 72362.00 12/31/96 102008.00 102217.00 89092.00 12/31/97 128857.00 136317.00 116248.00 12/31/98 167952.00 175276.00 161259.00 12/31/99 211653.00 212155.00 214732.00 12/31/00 194848.00 192827.00 166568.00 12/31/01 153193.00 169884.00 132575.00
- --------------- Past performance is not predictive of future results. The S&P 500 Index is an unmanaged index generally considered representative of the U.S. stock market. 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 U.S. companies based on total market capitalization). A DIFFICULT YEAR December 31, 2001, ended a very difficult year for growth company investors. An economic recession, a steep decline in corporate earnings -- particularly for technology companies -- and the great uncertainty brought about by the tragic events of 9/11 all contributed to the decline in stock prices. For the calendar year 2001, Columbia Growth Fund returned -21.40%, while the Russell 1000 Growth Index returned -20.42% and the S&P 500 Index returned -11.88%. DECLINES PUNCTUATED BY MARKET RALLIES Throughout the year, the negative stock market environment was punctuated by sharp rallies, which were only to be followed by further declines. Much of the fuel for these rallies was provided by surprise and/or aggressive Federal Reserve monetary easing, a powerful bull market trigger in the post-World War II period. This recession, however, was unlike any other since World War II, and the rallies proved unsustainable. The amount of excess capacity in the manufacturing sector, particularly for technology equipment, was continually underestimated. As a result, during the early phases of the easing process, the Federal Reserve's actions were rendered ineffective in reviving prospects for this sector. After one year of easier monetary policy and a significant drawdown in manufacturing inventories, we believe the worst in the decline of corporate earnings is behind us and that a rebound should commence by the second half of 2002. CYCLICAL ISSUES HURT PERFORMANCE The Fund's slightly pro-cyclical stance hurt performance through the first three quarters of 2001, although it proved beneficial in the fourth quarter. Economically sensitive issues that hampered Fund performance were concentrated in the technology sector and included Sun Microsystems, Cisco and Veritas Software. We believe these are all good companies despite their struggles in 2001, and their business prospects and stock prices have been improving. As the Fed lowered short-term interest rates, consumer cyclical issues performed very well as prospects for spending improved. The Fund's retail holdings, such as Lowe's, Target and Costco, appreciated. 6 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- TOP TEN HOLDINGS % of Net Assets
12/31/01 6/30/01 -------- ------- Microsoft Corp. 5.0 5.1 Tyco International Ltd. 4.7 3.9 General Electric Co. 4.5 4.8 Pfizer, Inc. 4.4 5.0 Intel Corp. 3.7 2.8 Bristol-Myers Squibb Co. 3.0 -- Wal-Mart Stores, Inc. 2.7 3.1 International Business Machines Corp. 2.5 2.0 Baxter International, Inc. 2.4 2.2 American International Group, Inc. 2.2 2.5
------------------------ TOP FIVE SECTORS % of Net Assets
12/31/01 6/30/01 -------- ------- Technology 26.9 29.6 Health Care 20.3 15.7 Consumer Discretionary & Services 19.7 17.9 Other/Multi-Sector Companies 10.2 10.2 Financial Services 8.9 12.2
ANTICIPATING A RECOVERY Economic prospects have improved considerably. The effects of Fed easing (which typically take about a year to make an impact), fiscal stimulus, maturity of the massive inventory liquidation cycle, and lower energy and power prices have all begun to work their way through the economy. Stock prices began to discount this dynamic soon after the 9/11 tragedy. Though inflation expectations may increase as economic prospects stabilize, the actual inflation rate is projected to decline, suggesting that the Fed will keep short-term interest rates low. Valuations, even on a prospective recovery in earnings, are somewhat high and limit prospects for P/E expansion, leaving market gains largely dependent on earnings growth. We believe the worst economic and stock market performance is behind us, and we look forward to a recovery in share prices led by economically sensitive issues. Alexander S. Macmillan Portfolio Manager 7 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- COLUMBIA INTERNATIONAL STOCK FUND AVERAGE ANNUAL TOTAL RETURNS As of December 31, 2001
MSCI CISF EAFE ------ ------- 1 Year -18.47% -21.21% 5 Years 4.61% 1.17% Since Inception (10/1/92) 7.79% 6.13%
GROWTH OF $10,000 SINCE INCEPTION [LINE GRAPH]
COLUMBIA INTERNATIONAL STOCK FUND MSCI EAFE INDEX --------------------------------- --------------- 10/1/92 10000.00 10000.00 12/31/92 10060.00 9623.00 12/31/93 13417.00 12794.00 12/31/94 13086.00 13825.00 12/31/95 13760.00 15422.00 12/31/96 16042.00 16403.00 12/31/97 17882.00 16740.00 12/31/98 20177.00 20144.00 12/31/99 31865.00 25643.00 12/31/00 24651.00 22063.00 12/31/01 20094.00 17388.00
- --------------- Past performance is not predictive of future results. The MSCI EAFE Index is an unmanaged, market-weighted index composed of companies representative of the market structure of 20 developed market countries in Europe, Australasia and the Far East. FUND PERFORMANCE For the year ended December 31, 2001, Columbia International Stock Fund returned - -18.47%, keeping ahead of the -21.21% return of the MSCI EAFE Index. Over the long-term, the Fund has demonstrated competitive performance, returning 7.79% on an average annual basis since its inception in 1992, as compared to 6.13% for the MSCI EAFE Index over the same period. GLOBAL MARKETS EXPERIENCE DIFFICULTY The year 2001 was difficult for international markets. At the outset, global economic growth was expected to slow, but remain positive. The strong U.S. economy was growing at an unsustainably high pace in 2000, led by extraordinary capital spending in the technology area. The inevitable slowdown occurred, and as we headed into 2001, the Federal Reserve cut interest rates unexpectedly in January. Continued deterioration in economic activity resulted in repeated rate cuts throughout the year, and 2001 marked the first recession in nearly a decade. Exports to the U.S. were impacted and foreign economies slowed, though not to the same extent as the U.S. STRUCTURAL CHANGES TO REDUCE RISK In order to protect the portfolio from the slowdown and reduce downside risk, we made several structural changes late in the first quarter. We increased the number of foreign markets in which we held positions and increased the number of positions within those markets. More importantly, we emphasized less volatile sectors of the market, such as pharmaceuticals, food retailers and utilities. We also maintained an underweighting in technology and telecommunications. These areas had weakened considerably by mid-year, and we began adding to quality technology investments as valuations became more acceptable. KOREA A PROFITABLE DECISION Our most profitable decision, perhaps, was to continue investing in Korea, a practice that began over a year ago. We have been attracted to compelling valuations for strong companies with visible growth prospects. Pacific Corp., a leading cosmetics company, performed very well in the past year. Humax, a smaller company, made substantial gains in the fourth quarter. It has a strong, niche position in the video control area, which is expected to grow rapidly as television broadcasting moves to the digital format. Lastly, Samsung, a clear 8 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- global leader in semiconductor manufacturing, had a very good fourth quarter after demonstrating weakness earlier in the year. Though it continues to be one of our largest country holdings, Japan gave us the most difficulty during the year. Not only was the Japanese economic background weak, but a lack of compelling political leadership continued to frustrate investors. Early in the year, some technology stocks, including Sony (which we sold in the fourth quarter), NEC Corp., and Canon, were weak, but patience was rewarded in the final several months as many of the stocks rallied. Finally, the stronger dollar and weaker foreign currencies dragged performance down. In particular, the Japanese Yen lost over 13% during the year. The bulk of the loss came in the fourth quarter, as authorities seemed willing to tolerate weakness in the Yen in order to help promote Japanese exports. LOOKING AHEAD TO RECOVERY We approach the coming year with renewed confidence. Globally, authorities have responded vigorously to the economic slowdown by significantly cutting interest rates. Europe has room for further cuts, and therefore, financial stocks and interest-rate sensitive groups are prominent in the portfolio. In Asia, especially in Japan, we are likely to see a sharper cyclical rebound similar to the one experienced in 1999 following the banking crisis of 1998. Currently, we have reduced our emphasis on Japan due to the steady weakness of the Yen, but maintain a core of strong global competitors, a few domestic retailers, and several small cap growth companies, such as Kappa Create Co., a sushi chain, and Nissin Healthcare Food Service. With stock prices well down (in some cases prices are at their lowest levels in a decade), we believe investment opportunities are attractive. Therefore, as the year 2002 gets underway, we shall be vigilant in positioning the portfolio to recover from the setbacks of the past year and build on the recovery started late in 2001. James M. McAlear Portfolio Manager TOP TEN HOLDINGS % of Net Assets
12/31/01 6/30/01 -------- -------- Vodafone Group plc (United Kingdom) 2.4 1.0 GlaxoSmithKline plc (United Kingdom) 1.6 1.1 Barclays plc (United Kingdom) 1.5 1.3 Seven-Eleven Japan Co., Ltd. (Japan) 1.5 -- Total Fina Elf SA (France) 1.4 0.7 BP plc, ADR (United Kingdom) 1.4 0.9 BNP Paribas (France) 1.4 0.8 Canon, Inc. (Japan) 1.3 0.5 Pacific Corp. (Korea) 1.2 1.3 AEON Co., Ltd. (Japan) 1.2 --
------------------------ TOP FIVE COUNTRIES % of Net Assets
12/31/01 6/30/01 -------- -------- United Kingdom 25.6 22.0 Japan 17.6 25.5 France 9.4 8.5 Germany 7.0 3.7 Switzerland 6.7 4.2
9 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- COLUMBIA SPECIAL FUND AVERAGE ANNUAL TOTAL RETURNS As of December 31, 2001
Russell Russell Midcap CSF Midcap Growth ------- ------- ------- 1 Year -20.98% -5.62% -20.15% 5 Years 10.01% 11.40% 9.02% 10 Years 12.82% 13.58% 11.10%
[GROWTH OF $10,000 OVER 10 YEARS LINE GRAPH]
RUSSELL MIDCAP GROWTH COLUMBIA SPECIAL FUND RUSSELL MIDCAP INDEX INDEX --------------------- -------------------- --------------------- 12/31/91 10000.00 10000.00 10000.00 12/31/92 11370.00 11634.00 10871.00 12/31/93 13835.00 13298.00 12087.00 12/31/94 14152.00 13020.00 11826.00 12/31/95 18331.00 17506.00 15845.00 12/31/96 20727.00 20833.00 18615.00 12/31/97 23347.00 26876.00 22810.00 12/31/98 27231.00 29588.00 26887.00 12/31/99 37125.00 34982.00 40677.00 12/31/00 42263.00 37868.00 35897.00 12/31/01 33398.00 35740.00 28655.00
Past performance is not predictive of future results. The Russell Midcap Index is an unmanaged index that measures the performance of the 800 smallest companies in the Russell 1000 Index, which represent approximately 24% of the total market capitalization of the Russell 1000 Index. The Russell Midcap Growth Index is an unmanaged index that measures the performance of those Russell Midcap companies with higher price-to-book ratios and higher forecasted growth values. PERFORMANCE REFLECTS VOLATILE MARKET The year 2001 was challenging for mid-cap growth stocks. Columbia Special Fund returned -20.98% for the 12 months ended December 31. In comparison, the Russell Midcap Index returned -5.62% and the Russell Midcap Growth Index returned - -20.15%. Over the long term, the Fund has remained competitive with its benchmarks: on an average annual basis, the Fund has returned 12.82% for the 10 years ended December 31, 2001, while the Russell Midcap and the Russell Midcap Growth indices have returned 13.58% and 11.10%, respectively. STOCKS UNDER PRESSURE A rapid deterioration in the economy placed stocks under pressure for most of 2001. Earnings expectations were continuously downgraded, and companies responded to the slowdown by laying off workers, reducing inventories and cutting capital expenditures. Software valuations were especially hard hit as spending on IT was slashed. More defensive areas, like health care, found favor with investors. As the Fed began cutting rates early in the year, a brief rally in cyclical stocks, such as technology, took place. However, as the economy continued to worsen, sentiment returned toward non-cyclical issues. With the economy already on shaky ground, the terrorist attacks of 9/11 only served to exacerbate the decline. Stocks sold off sharply in the following weeks, and an anticipated economic recovery was delayed. However, a surprisingly strong market recovery took place in the fourth quarter, with technology posting some of the largest gains. Considering the significant fiscal and monetary stimulus packages introduced over the course of the year, as well as the progress with the war on terrorism, investors have come to believe that the worst is over and a recovery is on the horizon. DEFENSIVE ISSUES FIND FAVOR In the first half of the year, health care and consumer- related stocks performed well for the Fund. Compared to other sectors, health care is not as sensitive to changes in the economic environment. Also, despite the slowdown, consumers maintained their spending habits and, for a time, helped delay the inevitable recession. 10 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- Early in the second half, we raised the cash position of the Fund and continued to increase our weighting in the health care sector, seeking issues in specialty pharmaceuticals, biotechnology, medical devices, and hospitals and services. We felt these companies would have high earnings visibility and compelling growth prospects in 2002. We also selectively added to technology while reducing our energy holdings. We slowly put cash to work in the fourth quarter, adding to technology and retail, areas that we think will experience strong earnings recovery in 2002 as the economy improves. The technology sector rallied in the quarter and was one of the best performing sectors in the period. Holdings in Rational Software, PeopleSoft, Siebel Systems and Veritas Software enhanced the Fund's performance. Toward the end of the quarter, however, we stopped adding to our technology holdings since valuations became expensive after the rally. On a correction or on increased visibility for earnings, we would anticipate adding to our holdings in technology again. Though energy was a strong performing sector in 2000, it proved detrimental to the Fund in 2001. We consistently reduced our exposure to this area over the course of the year as prices on oil and natural gas fell due to a decline in demand. IMPROVED PROSPECTS FOR 2002 Though the market may be ahead of itself in anticipating a strong recovery in the near-term, we do believe that the economy will find its footing in the coming year and we anticipate a rebound in late 2002. Richard J. Johnson Portfolio Manager TOP TEN HOLDINGS % of Net Assets
12/31/01 6/30/01 WellPoint Health Networks, Inc. 2.5 0.8 Sepracor, Inc. 2.3 Caremark Rx, Inc. 2.2 1.3 ANDRX Group 2.2 1.6 Intuit, Inc. 2.1 1.6 MedImmune, Inc. 2.1 -- Boston Scientific Corp. 2.1 1.0 HealthSouth Corp. 2.0 -- Gemstar -- TV Guide International, Inc. 1.9 0.5 Martin Marietta Materials, Inc. 1.9 1.7
------------------------ TOP FIVE SECTORS % of Net Assets
12/31/01 6/30/01 Health Care 35.9 22.1 Consumer Discretionary & Services 26.3 22.1 Technology 14.5 19.3 Producer Durables 7.4 4.1 Financial Services 4.9 5.4
11 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- COLUMBIA SMALL CAP FUND AVERAGE ANNUAL TOTAL RETURNS As of December 31, 2001
RUSSELL RUSSELL 2000 CSCF 2000 GROWTH ------ ------- ------- 1 Year -14.19% 2.49% -9.24% 5 Years 15.21% 7.52% 2.87% Since Inception (10/1/96) 15.88% 8.11% 2.76%
GROWTH OF $10,000 SINCE INCEPTION [LINE GRAPH]
COLUMBIA SMALL CAP FUND RUSSELL 2000 INDEX RUSSELL 2000 GROWTH INDEX ----------------------- ------------------ ------------------------- 10/1/96 10000.00 10000.00 10000.00 12/31/96 10762.00 10520.00 10026.00 12/31/97 14432.00 12872.00 11324.00 12/31/98 15109.00 12544.00 11464.00 12/31/99 24045.00 15211.00 16404.00 12/31/00 25452.00 14752.00 12723.00 12/31/01 21844.00 15118.00 11550.00
- --------------- Past performance is not predictive of future results. The Russell 2000 is an unmanaged index generally considered representative of the market for small, domestic stocks. The Russell 2000 Growth Index is an unmanaged index that measures performance of those Russell 2000 companies with higher price-to-book ratios and higher forecasted growth values. FUND PERFORMANCE For the year ended December 31, 2001, Columbia Small Cap Fund posted a return of - -14.19%. In comparison, the Russell 2000 Growth Index returned -9.24% and the Russell 2000 Index returned 2.49%. Over the long term, the Fund remains ahead of its benchmark indices. Since its inception in 1996, the Fund has returned 15.88% on an average annual basis, as compared to 2.76% for the Russell 2000 Growth Index and 8.11% for the Russell 2000 Index. A TUMULTUOUS YEAR The year 2001 proved to be one of turmoil as the markets first struggled with a faltering economy and then with the horror of terrorist attacks on 9/11. For much of the year, stock valuations were under pressure due to a bleak earnings outlook. The boom times of the 1990s had encouraged excessive capital spending, which resulted in overcapacity in both equipment and workforce. As a result, many corporations began cutting costs by laying off workers and reducing inventories. The events of 9/11 shattered the already fragile psyche of investors, and the market plunged on a sudden and sharp sell-off. The market hit a low on September 21st but, surprisingly, made a quick and strong recovery in the fourth quarter. Concerns of additional terrorist attacks had ebbed as progress was made in Afghanistan. In addition, steps to boost economic growth, such as aggressive Fed easing throughout the year and significant fiscal stimulus packages, helped tilt the market toward recovery. We believe that the worst is likely behind us in terms of recessionary conditions, but a recovery will be a slow process and is not anticipated until later in 2002. VARIOUS SECTORS STEP UP Various sectors contributed to Fund performance over the course of the year. Health care performed well in the first three quarters as investors turned to more defensive issues (those relatively insensitive to changes in the economy) in an uncertain market. However, as the market rotated to more cyclical sectors in the fourth quarter, such as technology, the health care sector suffered some weakness. Nonetheless, we believe that companies like Province Healthcare, which operates acute-care hospitals, and First Health Group, a national health benefits company, will deliver on their earnings expectations in 2002 and should experience an improvement in performance. 12 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- Despite coming under significant pressure, especially after 9/11, the technology sector rallied in the fourth quarter. Some of our holdings rose substantially in the period, such as Documentum, Retek, Genesis Microchip and PRI Automation. We stopped adding to the sector late in the year since valuations became stretched. In fact, after its fourth quarter rally, the technology sector has become fairly expensive and dependent on earnings expectations rising in the near term. The Fund also benefited from holdings in biotech, education and retail. Biotech closed the year on a strong note, as our holdings in Neurocrine Biosciences, Sepracor and Transkaryotic Therapies were all up significantly in the fourth quarter. In the education sector, our holdings in Strayer Education and Sylvan Learning Systems were also solid contributors. Finally, selected retail holdings did well during the year, and we added to the sector in the fourth quarter; we expect a strong earnings recovery for this area when the economy improves. A MAJOR SHIFT IN ENERGY During the year, one of the most significant shifts in the portfolio was a reduction in our energy weighting. The Fund began the year with energy stocks making up 16.2% of net assets, and by the end of the year, this weighting was slashed to 1.5%. Though the sector performed well in 2000, it suffered in 2001 as commodity prices for oil and natural gas declined throughout the year. We believe energy will continue to struggle in the near-term, but as valuations are near "worst case" assumptions, we are holding onto our very few holdings in the sector. LOOKING AHEAD History shows a clear pattern of small-cap growth stocks outperforming the overall market for up to 18 months from the worst point in an economic recession, which we hopefully passed in the third quarter of 2001. Going forward, prospects for good relative performance for small-cap stocks appear bright, as monetary and fiscal stimulus packages should revitalize economic expansion late in 2002. Richard J. Johnson Portfolio Manager TOP TEN HOLDINGS % of Net Assets
12/31/01 6/30/01 DaVita, Inc. 2.4 1.7 Sepracor, Inc. 2.2 -- Stericycle, Inc. 2.1 1.1 Caremark Rx, Inc. 2.0 1.3 Sylvan Learning Systems, Inc 1.9 1.7 Express Scripts, Inc. 1.9 -- Zale Corp. 1.9 0.9 Lamar Advertising Co. 1.7 1.5 First Health Group Corp. 1.6 1.4 Biovail Corp. 1.6 1.0
------------------------ TOP FIVE SECTORS % of Net Assets
12/31/01 6/30/01 Health Care 32.2 25.3 Consumer Discretionary & Services 24.2 23.2 Technology 17.0 19.3 Producer Durables 7.2 10.8 Financial Services 6.0 3.1
13 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- COLUMBIA REAL ESTATE EQUITY FUND AVERAGE ANNUAL TOTAL RETURNS As of December 31, 2001
CREF NAREIT ------ ------ 1 Year 5.41% 13.93% 5 Years 7.69% 6.38% Since Inception (4/1/94) 11.77% 10.11%
GROWTH OF $10,000 SINCE INCEPTION [LINE GRAPH]
COLUMBIA REAL ESTATE EQUITY FUND NAREIT INDEX -------------------------------- ------------ 4/1/94 10000.00 10000.00 12/31/94 10176.00 9978.00 12/31/95 11892.00 11502.00 12/31/96 16446.00 15558.00 12/31/97 20515.00 18710.00 12/31/98 17985.00 15434.00 12/31/99 17545.00 14721.00 12/31/00 22605.00 18603.00 12/31/01 23824.00 21193.00
- --------------- Past performance is not predictive of future results. The National Association of Real Estate investment Trusts Index (NAREIT) is an unmanaged index that tracks performance of all publicly traded equity REITs. STRONG PERFORMANCE IN 2001 Buoyed by attractive valuations, stability and healthy cash flows, REITs (real estate investment trusts) performed strongly again in 2001. The NAREIT Index returned 13.93%, while Columbia Real Estate Equity Fund returned 5.41%. Over the long term, the Fund has returned 11.77%, on an average annual basis, since its 1994 inception, as compared to the NAREIT return of 10.11%. The Fund underperformed relative to the Index due to specific events in the first and third quarters of 2001. The first quarter saw a sharp shift in market sentiment toward small-cap, high dividend yielding stocks, which were underrepresented in the Fund. In the third quarter, the unexpected 9/11 terrorist attacks resulted in a material decline in the Fund's lodging holdings, a pro-cyclical, overweighted position held at that time. Fortunately, the effects of these events are not ongoing, and the Fund's subsequent performance has improved. MARKET CONDITIONS The economic recession is putting pressure on occupancies and rents, causing REIT earnings estimates for the fourth quarter 2001 and the year 2002 to fall (it is normal for REIT estimate reductions to lag behind estimates for the broader market). However, the low level of new supply and an aggressive Fed seeking to boost economic growth bode well for reinvigorated growth in 2003. Historically, the sectors best positioned to benefit from expectations of higher economic growth rates are lodging and retail. In 2001, retail handily outperformed the Index, and the Fund's weighting in this sector contributed strongly to performance. Lodging, however, underperformed for the year. Despite a very strong showing in the fourth quarter, lodging was unable to erase the setback it experienced in the third quarter. Results for the Fund were primarily restrained by holdings in the office and apartment sectors, which suffered from perceptions of declining growth rates. The decline in valuations in the office sector, in particular, is a fair reflection of current fundamental concerns, making this sector attractive if the economy recovers, as anticipated, later in 2002. 14 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- TOP SECTORS AND STOCKS Health care, self-storage and retail were the top REIT performers in 2001. These sectors excelled from a combination of improved fundamentals (such as lower short-term rates for retail and rising government reimbursements for health care), non-cyclical underlying businesses (self-storage and health care), and low earnings multiples relative to other REITs. The best performers in the Fund included one self-storage company and two retail companies: Public Storage, Simon Property Group and Pan Pacific Retail. Each holding was helped by beginning the year with low earnings multiples and perceptions of improving prospects. Conversely, the worst performers for the Fund either started the period with high earnings multiples and had moderating earnings expectations or were impacted by the events of 9/11. These companies included Boston Properties (an office REIT) and Host Marriott (a hotel REIT). FAVORABLE ENVIRONMENT FOR REITS A favorable environment for REITs has been fostered by attempts to maintain a healthy economic environment through both fiscal and monetary policy, a low level of new supply and attractive valuations. The Fund will continue to focus on strong, experienced management teams with the best prospects for sustainable future growth. David W. Jellison Portfolio Manager TOP TEN HOLDINGS % of Net Assets
12/31/01 6/30/01 -------- -------- Equity Office Properties Trust 9.5 7.1 Cousins Properties, Inc. 5.9 5.9 Vornado Realty Trust 5.0 4.7 General Growth Properties, Inc. 4.9 5.0 Simon Property Group, Inc. 4.8 5.2 AvalonBay Communities, Inc. 4.8 3.5 Equity Residential Properties Trust 4.8 4.7 iStar Financial, Inc. 4.8 2.2 Plum Creek Timber Company, Inc. 4.3 1.3 TrizecHahn Corp. 4.2 4.7
------------------------ TOP FIVE SECTORS % of Net Assets
12/31/01 6/30/01 -------- -------- Office 25.6 20.1 Industrial 16.0 17.9 Residential 15.0 14.8 Retail 9.8 10.1 Community Centers 8.0 7.7
15 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- COLUMBIA TECHNOLOGY FUND AVERAGE ANNUAL TOTAL RETURNS As of December 31, 2001
CTF MERRILL ------ 100 TECH ------------- 1 Year -28.97% -32.45% Since Inception (11/9/00) -35.97% -46.70%
GROWTH OF $10,000 SINCE INCEPTION [LINE GRAPH]
COLUMBIA TECHNOLOGY FUND MERRILL LYNCH 100 TECHNOLOGY INDEX ------------------------ ---------------------------------- 11/9/00 10000.00 10000.00 12/31/00 8622.00 7201.00 12/31/01 6124.00 4864.00
Past performance is not predictive of future results. The Merrill Lynch 100 Technology Index is an equally-weighted, unmanaged index of 100 leading technology stocks. Fund performance includes a voluntary reimbursement of Fund expenses by the Advisor. Absent these reimbursements, total returns would have been lower. FUND PERFORMANCE For the year ended December 31, 2001, Columbia Technology Fund returned - -28.97%, while the Merrill Lynch 100 Technology Index returned -32.45% for the same period. TECH SUFFERS IN 2001 Revenue and earnings disappointments during 2001 resulted in poor performance for technology stocks during the first three quarters of the year. This was true for all sectors of technology, including semiconductors, software, hardware and telecom equipment. In a fourth quarter rally, however, technology stocks rebounded from depressed valuation levels. The semiconductor industry was one of the best performing areas for the Fund, providing a flat return for 2001. The industry's performance was particularly strong in the fourth quarter, as capacity utilization appeared to be bottoming and investors were beginning to look ahead to a return to normal utilization. Entering 2002, the Fund intends to assume an overweighted position in semiconductors and is currently invested in the three largest semiconductor foundries. These foundries, including Taiwan Semiconductor, United Microelectronics and Chartered Semiconductor, are expected to grow faster than the industry as a whole in 2002. Furthermore, as the economy recovers, end-user customer demand for semiconductors should improve. During the year, telecom equipment companies continued to struggle as incumbent service providers reduced their capital spending budgets. In addition, some emerging service providers filed for bankruptcy early in the year. Entering 2002, telecom services providers are still slashing their capital expenditure budgets, and the Fund will likely remain underweighted in this sector. Software companies suffered in the year due to broad reductions in information technology (IT) budgets. If the economy recovers in 2002, as anticipated, IT budgets could return to normal levels. Also, software stocks took the greatest drubbing after the events of 9/11, becoming the most inexpensive technology group. Due to that industry's attractive valuations, we added to our holdings late in the year and maintained an overweighting in software entering 2002. 16 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- SOLID CONTRIBUTORS Despite the preponderance of bad news in the technology sector, some individual stocks made strong contributions to Fund performance. Advent Software, eBay, Nvidia and Semtech all posted solid gains for the year. Advent Software provides portfolio management software for financial institutions and has seen consistent growth of revenue. The online auction house eBay has been a profitable Internet model and has demonstrated visible earnings growth. Nvidia produces graphic semiconductor chips and game consoles, and it performed well due to strong demand, while Semtech also experienced solid demand for its analog semiconductor chips. POOR PERFORMERS Some of the Fund's weakest performers were those that had considerable difficulty meeting their earnings projections. Such holdings included i2 Technologies, a developer of supply chain management software; Research in Motion, which is known for its Blackberry devices; and Mercury Interactive, a developer of testing software for Internet applications. OUR OUTLOOK We continue to seek companies with strong management, superior long-term growth prospects and dominant market share positions at what we believe to be sustainable valuations. We believe that we have positioned the Fund to benefit from an improvement in economic activity. As 2002 unfolds, we expect technology stocks to benefit from any increase in revenue and earnings projections, and we anticipate revenue and earnings will recover gradually as the economy changes course. Steven N. Marshman Portfolio Manager TOP TEN HOLDINGS % of Net Assets
12/31/01 6/30/01 Amphenol Corp. (Class A) 2.7 1.6 United Microelectronics Corp. ADR 2.6 -- TIBCO Software, Inc. 2.2 1.7 Semtech Corp. 2.0 1.1 Advent Software, Inc. 2.0 1.3 Siebel Systems, Inc. 1.9 1.8 Microsemi Corp. 1.9 -- Adelphia Communications Corp. (Class A) 1.9 -- Cisco Systems, Inc. 1.8 1.0 RadiSys Corp. 1.8 --
------------------------ TOP FIVE SECTORS % of Net Assets
12/31/01 6/30/01 Computer Services Software & Systems 23.3 26.2 Electronics: Semiconductors 18.9 17.8 Production Technology Equipment 14.2 11.0 Communications Technology 8.7 7.9 Computer Technology 8.5 4.1
17 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- COLUMBIA STRATEGIC VALUE FUND AVERAGE ANNUAL TOTAL RETURNS As of December 31, 2001
Lipper Multi-Cap CSVF Value S&P 500 ------ ----------- ------- 1 Year 29.76% 1.30% -11.88% Since Inception (11/9/00) 40.76% 2.94% -15.85%
GROWTH OF $10,000 SINCE INCEPTION [LINE GRAPH]
COLUMBIA STRATEGIC VALUE LIPPER MULTI-CAP VALUE FUND FUNDS INDEX S&P 500 INDEX ------------------------ ---------------------- ------------- 11/9/00 10000.00 10000.00 10000.00 12/31/00 11225.00 10204.00 9386.00 12/31/01 14565.00 10337.00 8271.00
Past performance is not predictive of future results. The Lipper Multi-Cap Value Funds Index reflects equally-weighted performance of the 30 largest mutual funds within its category. The S&P 500 Index is an unmanaged index generally considered representative of the U.S. stock market. FUND PERFORMANCE For the year ended December 31, 2001, Columbia Strategic Value Fund posted a return of 29.76%, easily beating the 1.30% return of the Lipper Multi-Cap Value Funds Index and the -11.88% return for the S&P 500 Index. Since its inception in late 2000, the Fund has returned 40.76%, as compared to 2.94% for the Lipper Multi-Cap Value Funds Index and -15.85% for the S&P 500 Index. INVESTORS LOOK FAVORABLY ON VALUE A rapid slowdown in economic activity brought about market turbulence early in the year. As a result, investors were spurred away from higher priced growth stocks to lower priced and lower risk "value" stocks. In the second quarter, the disparity between such growth and value stocks lessened as stocks rallied with the commencement of an aggressive Fed easing policy. In addition, the Bush administration introduced a new tax package, providing relief to taxpayers across the board. Such monetary and fiscal stimuli were expected to encourage spending and boost economic activity. The economy suffered a setback from the events of 9/11, with technology and retail stocks in the Fund taking some of the greatest losses. As the markets rallied in the fourth quarter, technology and retail rebounded, while telecommunications issues continued their decline. SHIFTS IN PORTFOLIO STRATEGY Early in the year, we sought opportunities in infrastructure industries, such as transportation, cement, natural gas pipeline, and engineering and construction firms. These areas were largely ignored in the 1990s when capital spending focused on technology. We expect spending to catch up over the next few years in these industries. We also felt that soft goods retailers, appliance manufacturers and mobile home producers would benefit from an expected increase in consumer spending, which was fostered by lower interest rates and tax relief. The manufactured housing sector performed well, and our holdings in Clayton Homes, Champion Enterprises and Fleetwood Enterprises were particularly strong. While retail and technology hurt the Fund's performance in the third quarter, both sectors rebounded in the fourth. In retail, JC Penney, Abercrombie & Fitch, Dollar Tree and Circuit City finished the year on a strong note. Also, an improvement in the technology sector was evident in the fourth quarter, as the portfolio's holdings 18 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- in Samsung, Micron Technology, FEI Corp and Teradyne posted gains. The technology sector benefited from the consolidation of the D-RAM industry in terms of fewer competitors. Furthermore, we believe that prospects for a recovery in the semiconductor equipment industry in 2003 are favorable. Finally, we purchased holdings whose valuations were greatly depressed following the events of 9/11. For instance, we purchased holdings in airlines and hotels, which are expected to benefit from a possible upturn in business in 2002. In addition, we considered areas that could benefit from less business air travel, such as teleconferencing companies that suddenly experienced a jump in demand, like Raindance. We also evaluated restaurant chains with locations along major highways -- such as Cracker Barrel Old Country Stores -- that saw business improve as more travelers took to the roads. STOCKS THAT UNDERPERFORMED Stocks that hurt performance during the year included Halliburton, Disney and Hewlett Packard. Halliburton, which provides services and equipment to energy, industrial and governmental customers, suffered due to potential liability exposure from asbestos litigation. In the wake of 9/11, Disney experienced a drop in visitors to its theme parks. Lastly, investors viewed Hewlett Packard's merger with Compaq negatively, dragging the stock's price down. All three stocks were sold during the fourth quarter. SEEKING VALUE IN ALL SECTORS We continue to seek value in all sectors of the stock market and are not limited by market capitalization in our search. Companies considered for the Fund include those that are demonstrating improving cash flow and profit margins, as well as returns on invested capital. We also examine a potential candidate's management, financial condition, industry dynamics, and earnings growth. Looking forward, we believe that the foundation has been laid for a recovery in 2002. We are favoring small- and mid-cap issues in the portfolio and continue to be valuation sensitive. Robert A. Unger Portfolio Manager TOP TEN HOLDINGS % of Net Assets
12/31/01 6/30/01 Samsung Electronics Co., Ltd. GDR (144A) 1.2 -- Ionics, Inc. 1.0 -- Reader's Digest Association, Inc. (Class A) 1.0 -- Apache Corp. 1.0 -- Becton Dickinson & Co. 1.0 1.0 Circuit City Group 0.9 1.0 SAFECO Corp. 0.9 1.1 Kookmin Bank ADR 0.9 -- Heinz, H.J. Co. 0.9 -- Boston Scientific Corp. 0.9 0.9
------------------------ TOP FIVE SECTORS % of Net Assets
12/31/01 6/30/01 Consumer Discretionary & Services 14.4 18.9 Technology 13.1 10.1 Materials & Processing 10.2 8.4 Financial Services 9.6 12.9 Producer Durables 8.1 9.3
19 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- COLUMBIA BALANCED FUND AVERAGE ANNUAL TOTAL RETURNS As of December 31, 2001
S&P LEHMAN CBF 500 AGGREGATE ------ ------- --------- 1 Year -7.40% -11.88% 8.44% 5 Years 8.45% 10.70% 7.43% 10 Years 10.01% 12.93% 7.23%
GROWTH OF $10,000 OVER 10 YEARS [LINE GRAPH]
LEHMAN AGGREGATE BOND COLUMBIA BALANCED FUND S&P 500 INDEX INDEX ---------------------- ------------- --------------------- 12/31/91 10000.00 10000.00 10000.00 12/31/92 10889.00 10762.00 10740.00 12/31/93 12372.00 11847.00 11787.00 12/31/94 12384.00 12003.00 11443.00 12/31/95 15490.00 16514.00 13556.00 12/31/96 17315.00 20306.00 14049.00 12/31/97 20560.00 27080.00 15404.00 12/31/98 24687.00 34819.00 16743.00 12/31/99 27822.00 42145.00 16606.00 12/31/00 28050.00 38305.00 18537.00 12/31/01 25972.00 33750.00 20103.00
Past performance is not predictive of future results. The S&P 500 Index is an unmanaged index generally considered representative of the U.S. stock market. The Lehman Aggregate Bond Index is an unmanaged index that represents average market-weighted performance of U.S. Treasury and agency securities, investment- grade corporate bonds, and mortgage-backed securities with maturities greater than one year. FUND PERFORMANCE The year 2001 proved to be a challenging one, as the bear market that began in 2000 continued. Plagued by a recession, extremely poor corporate earnings and continued valuation compression, the year was capped by the unprecedented terrorist attacks on 9/11. As the stock market floundered, investors turned to bonds for stability. Though bonds generally performed well, the fixed income returns for the Fund were not enough to offset the declines posted by stocks. For the year ended December 31, 2001, Columbia Balanced Fund returned -7.40%. DEVELOPMENTS IN STOCKS In the equity portion of the portfolio, the finance, consumer cyclical, consumer staples, health care and transportation sectors managed to hold their own despite poor market conditions. Two of the Fund's best stocks included Bank of America and Baxter International. Coming into the year, Bank of America benefited from an attractive valuation and an above-average dividend yield, as well as from a positive fundamental backdrop of lower short-term interest rates and a "steepening" yield curve. Led by new CEO Ken Lewis, the company also began to concentrate on enhancing internal operations, and this emphasis on value creation enhanced investor confidence throughout the year. Health care holding Baxter International benefited from acceleration in revenue and earnings growth. The company delivered on promises for higher revenue and mid-teens earnings growth during the year, solidifying investor confidence and expanding the stock's valuation. Given its robust research and development pipeline, the company should continue to enjoy above-average growth. Unfortunately, the gains posted by such solid names were not enough to keep the Fund from dropping into negative territory. Substantial declines in the technology sector and other areas put an additional strain on the Fund's equity portfolio. For instance, American Express entered 2001 with a relatively high valuation and could not live up to Wall Street's lofty expectations. Although the company experienced problems in various business lines, we continue to keep it in the portfolio at year-end; we believe the company's recent restructuring and a potentially better economy should result in improved financial performance. 20 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- EQUITY INVESTMENT THEME Throughout the year, the Fund emphasized the Beneficiaries of Policy Change as an equity investment theme. Although the theme was temporarily hampered by the events of 9/11, its recent performance confirms that a bias toward sectors positioned to benefit from an economic recovery should positively impact returns. ADDING VALUE WITH BONDS In the bond markets during 2001, investors saw yields fall dramatically on short- and intermediate-term Treasuries and remain virtually unchanged on long-term Treasuries. This "steepening" of the yield curve was caused by the Fed's aggressive short-term interest rate cuts. In 11 moves during the year, the Fed eased the federal funds rate by a total of 4.75% in a concerted effort to reinvigorate the economy. The economy's 10-year expansion ended in March, although the third quarter was the first in which negative growth, as measured by the gross domestic product (GDP), was recorded. Our overweighting in corporate bonds, mortgage-backed securities and asset-backed securities added value during the year. Corporate bonds were the top performers, having the most positive impact on the fixed income portion of the Fund. AAA-rated commercial mortgage-backed securities also helped performance. Finally, our overweighting in intermediate-term bonds enhanced returns as these securities benefited the most from the lower short-term rates. During the year, the U.S. Treasury sector had the poorest performance, and among these securities, those with more long-term maturities performed the worst. Fortunately, we maintained an underweighting in that sector. In addition, the Fund's small weighting in high yield bonds slightly hindered performance. ANTICIPATING RECOVERY IN 2002 We believe the significant monetary and fiscal stimulus packages of 2001 have set the stage for an economic recovery. Many anecdotal pieces of evidence in recent months indicate that activity is stabilizing and even improving. Barring another shock like 9/11, economic growth should eventually turn into solid earnings growth for corporate America. Guy W. Pope, Leonard A. Aplet and Jeffrey L. Rippey On behalf of the Columbia Investment Team TOP TEN HOLDINGS % of Net Assets
12/31/01 6/30/01 Citigroup, Inc......................................... 2.7 2.5 General Electric Co.................................... 2.2 2.2 Pfizer, Inc............................................ 2.1 2.9 Microsoft Corp......................................... 1.9 2.1 Bristol-Myers Squibb Co................................ 1.8 -- Tyco International Ltd................................. 1.8 1.3 Intel Corp............................................. 1.7 1.1 Baxter International, Inc.............................. 1.7 1.4 Exxon Mobil Corp....................................... 1.6 0.5 Wal-Mart Stores, Inc................................... 1.5 1.0
PORTFOLIO COMPOSITION % of Net Assets [PIE CHART]
12/31/01 6/30/01 Common Stocks.......................................... 56.6% 57.2% Fixed Income........................................... 39.3% 38.3% Cash................................................... 4.1% 4.5%
21 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- COLUMBIA SHORT TERM BOND FUND AVERAGE ANNUAL TOTAL RETURNS As of December 31, 2001
CSTB MERRILL 1-5 MERRILL 1-3 ----- ----------- ----------- 1 Year 8.07% 8.98% 8.30% 5 Years 5.84% 6.95% 6.59% 10 Years 5.47% 6.53% 6.09%
GROWTH OF $10,000 OVER 10 YEARS [LINE GRAPH]
COLUMBIA SHORT TERM BOND MERRILL LYNCH 1-5 YEAR MERRILL LYNCH 1-3 YEAR FUND GOV'T/CORP INDEX TREASURY INDEX ------------------------ ---------------------- ---------------------- 12/31/91 10000 10000 10000 12/31/92 10581 10689 10630 12/31/93 11206 11451 11205 12/31/94 11203 11388 11269 12/31/95 12347 12864 12509 12/31/96 12822 13458 13131 12/31/97 13561 14422 14006 12/31/98 14433 15530 14986 12/31/99 14692 15870 15445 12/31/00 15759 17279 16681 12/31/01 17033 18829 18063
Past performance is not predictive of future results. The Merrill Lynch 1-5 Year Government/Corporate Index is an unmanaged index that includes all U.S. government debt with at least $100 million face value outstanding, as well as investment-grade rated corporate debt with at least $100 million face value outstanding and a maturity of 1-5 years. The Merrill Lynch 1-3 Year Treasury Index is an unmanaged index that measures the return of Treasury bills with maturities of 1-3 years and is intended to provide a benchmark for the prior investment objective and strategy of the Fund. On November 1, 2000, the Fund's strategy was changed from a U.S. government bond fund to a short term bond fund. Through October 31, 2003, the Advisor has contractually agreed to reimburse the Fund to keep expenses at or below 0.75% of net assets. Absent this reimbursement, total returns may have been lower. FUND PERFORMANCE For the year ended December 31, 2001, Columbia Short Term Bond Fund returned 8.07%. In comparison, the Merrill Lynch 1-5 Year Government/Corporate Index returned 8.98% and the Merrill Lynch 1-3 Year Treasury Index returned 8.30%. SHORT-TERM INTEREST RATES FALL During 2001, yields fell dramatically on short- and intermediate-term Treasuries, while yields ended the year virtually unchanged on long-term Treasuries. This "steepening" of the yield curve was caused by the Fed's aggressive short-term interest rate cuts. In 11 moves during the year, the Fed eased the federal funds rate by a total of 4.75% in a concerted effort to reinvigorate the economy. The economy's 10-year expansion ended in March, although the third quarter was the first in which negative growth was recorded (as measured by the gross domestic product). Historically, it has taken 9 to 12 months for a change in short-term rates to make an impact on the economy. In the meantime, the Bush administration introduced tax relief legislation that should help boost the economy. The steepness of the yield curve and the level of Treasury rates indicate that the bond market feels that the Fed's work is nearly finished. Due to the substantial monetary and fiscal stimulus introduced in 2001, the market is expecting an economic rebound in the second half of 2002. PORTFOLIO STRATEGY During most of the year, we maintained a duration (or average life) of just under 2.5 years for the Fund, which was about equal to the duration of our benchmark index, the Merrill Lynch 1-5 Year Government/Corporate bond index. In November, we shortened the portfolio's duration relative to the index. We also maintained an overweighting in high quality intermediate-term corporate bonds, as well as AAA-rated asset-backed securities. Due to lower mortgage rates, we slightly reduced our overweighting in mortgage-backed securities and also traded into securities with better call protection. We maintained an overweighting in corporate bonds, which benefited Fund performance, as their yields were more attractive than those on Treasuries. 22 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- CORPORATES LEAD PERFORMANCE Our overweighting in corporate bonds, mortgage-backed securities and asset-backed securities all added value during the year, with corporate bonds having the greatest positive impact on the portfolio. AAA-rated commercial mortgage-backed securities also added to the Fund's returns. Finally, our overweighting in intermediate-term bonds helped the portfolio as these securities benefited the most from the lower short-term rates. The U.S. Treasury sector turned in the worst performance in the bond market during 2001, and we remained underweighted in these securities during the year. We found that the best performers along the yield curve were bonds with maturities between 2 and 5 years. Any bond with a maturity less than 1 year (such as cash and cash equivalents) or more than 5 years simply did not perform as well. The portfolio includes cash and other very short-term securities, and although these holdings earned a good rate of return, they did not appreciate in price as interest rates fell. LOOKING AHEAD The outlook for bonds during 2002 depends upon how the economy responds to lower short-term interest rates and tax cuts, as well as any further monetary and fiscal policy changes. We expect the economy to grow in the second half of the year. We also expect that the rate of inflation will remain under control, but if the Fed becomes concerned about inflationary pressure, they may begin raising short-term interest rates. Increasing rates would be negative for bond performance, as bond prices tend to fall as interest rates rise. However we feel that the performance of corporate bonds, mortgage-backed securities, asset-backed securities and high yield bonds, relative to Treasuries, should benefit the Fund. Leonard A. Aplet and Jeffrey L. Rippey Portfolio Managers PORTFOLIO COMPOSITION % of Net Assets
12/31/01 6/30/01 Asset-Backed Securities 18.9 11.6 Collateralized Mortgage Obligations 12.2 17.5 Corporate Bonds 38.9 39.6 Mortgage Pass-Throughs 15.5 14.9 Treasury/Agency 6.6 10.5 Cash 7.9 5.9
PORTFOLIO QUALITY % of Portfolio Holdings 12/31/01 [PIE CHART] Aaa 33.3% Treasury/Agency 24.6% A 20.9% Baa 14.5% Aa 6.7%
6/30/01 [PIE CHART] Aaa 29.7% Treasury/Agency 28.2% A 23.9% Aa 9.3% Baa 8.9%
As rated by Moody's Investors Service, Inc. 23 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- COLUMBIA FIXED INCOME SECURITIES FUND AVERAGE ANNUAL TOTAL RETURNS As of December 31, 2001
LEHMAN CFIS AGGREGATE ------ --------- 1 Year 8.13% 8.44% 5 Years 6.88% 7.43% 10 Years 7.05% 7.23%
GROWTH OF $10,000 OVER 10 YEARS [LINE GRAPH]
COLUMBIA FIXED INCOME SECURITIES FUND LEHMAN AGGREGATE BOND INDEX ---------------------- --------------------------- 12/31/91 10000.00 10000.00 12/31/92 10799.00 10740.00 12/31/93 11930.00 11787.00 12/31/94 11529.00 11443.00 12/31/95 13709.00 13556.00 12/31/96 14171.00 14049.00 12/31/97 15526.00 15404.00 12/31/98 16681.00 16743.00 12/31/99 16431.00 16606.00 12/31/00 18282.00 18537.00 12/31/01 19767.00 20103.00
Past performance is not predictive of future results. The Lehman Aggregate Bond Index is an unmanaged index that represents average market-weighted performance of U.S. Treasury and agency securities, investment-grade corporate bonds, and mortgage-backed securities with maturities greater than one year. COMPETITIVE PERFORMANCE Columbia Fixed Income Securities Fund posted a return of 8.13% for the year ended December 31, 2001. The Fund's performance was consistent with its benchmark, the Lehman Aggregate Bond Index, which returned 8.44% for the year. YIELD CURVE "STEEPENS" During 2001, yields fell dramatically on short- and intermediate-term Treasuries, while yields ended the year virtually unchanged on long-term Treasuries. This "steepening" of the yield curve was caused by the Fed's aggressive short-term interest rate cuts. In 11 moves during the year, the Fed eased the federal funds rate by a total of 4.75% in a concerted effort to reinvigorate the economy. The economy's 10-year expansion ended in March, although the third quarter was the first in which negative growth was recorded (as measured by the gross domestic product). Historically, the lag time for a change in short-term rates to affect the economy has ranged from 9 to 12 months. In the meantime, the Bush administration introduced tax relief legislation that should help boost the economy. The steepness of the yield curve and the level of Treasury rates indicate that the bond market feels that the Fed's work is nearly finished. After the substantial monetary and fiscal stimulus introduced in 2001, the market is expecting an economic rebound in the second half of 2002. POSITIONED TO BENEFIT FROM YIELD CURVE During the year, we positioned the portfolio to benefit from changes in the shape of the yield curve. One way of taking advantage of the steepening yield curve was by varying the relative amount of long-term Treasuries in the portfolio. As the yield curve steepened, we increased our exposure to the long-term end of the yield curve from an underweighted position to a market-weighted position. Then, when the long-term end of the yield curve (the difference in yield between the 10-year Treasury and the 30-year Treasury) flattened in November, we returned to an underweighted position. As mortgage rates declined, we slightly reduced our overweighting in mortgage- backed securities and also traded into securities with better call protection. We maintained an overweighting in corporate bonds and benefited from their yields, which were attractive relative to Treasuries. 24 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- ADDING VALUE TO THE PORTFOLIO Our overweighting in corporate bonds, mortgage-backed securities and asset-backed securities added value during the year. Corporate bonds were the top performers, having the most positive impact on the portfolio. AAA-rated commercial mortgage-backed securities also helped the performance of the Fund. Finally, our overweighting in intermediate-term bonds enhanced returns as these securities benefited the most from the lower short-term rates. During the year, the U.S. Treasury sector had the poorest performance, and among these securities, those with longer- term maturities performed the worst. We maintained an underweighting in that sector. In addition, the Fund's small weighting in high yield bonds slightly hindered performance. OUTLOOK DEPENDS ON ECONOMY'S RESPONSE The outlook for bonds during 2002 depends upon how the economy responds to lower short-term interest rates and tax cuts, as well as any further fiscal or monetary policy changes. We expect the economy to grow in the second half of the year. We also expect the rate of inflation to remain under control, but if the Fed becomes concerned about inflationary pressures, they may begin to raise short-term rates. A tightening policy would be a negative for bond performance, as prices on existing bonds tend to fall when interest rates rise. However, in that scenario, the performance of corporate bonds, mortgage-backed securities, asset-backed securities and high yield bonds, relative to Treasuries, should benefit the Fund. Leonard A. Aplet and Jeffrey L. Rippey Portfolio Managers PORTFOLIO COMPOSITION % of Net Assets
12/31/01 6/30/01 Asset-Backed Securities 7.9 8.8 Collateralized Mortgage Obligations 13.6 14.6 Corporate Bonds 42.2 43.5 Mortgage Pass-Throughs 20.5 17.0 Treasury/Agency Obligations 10.9 12.9 Cash 4.9 3.2
PORTFOLIO QUALITY % of Portfolio Holdings 12/31/01 [PIE CHART] Treasury/Agency 40.0% A 17.3% Aaa 16.6% Baa 13.1% Aa 6.0% Ba 4.5% B 2.5%
6/30/01 [PIE CHART] Treasury/Agency 37.2% Aaa 17.9% A 16.4% Baa 13.9% Aa 7.6% Ba 4.8% B 2.2%
As rated by Moody's Investors Service, Inc. 25 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- COLUMBIA NATIONAL MUNICIPAL BOND FUND AVERAGE ANNUAL TOTAL RETURNS As of December 31, 2001
LEHMAN LIPPER CNMF MUNI GENERAL ----- ------ ------- 1 Year 4.16% 5.13% 4.15% Since Inception (2/24/99) 3.65% 4.83%* 3.54%
GROWTH OF $10,000 SINCE INCEPTION [LINE GRAPH]
COLUMBIA NATIONAL LIPPER GENERAL MUNICIPAL LEHMAN BROTHERS MUNICIPAL MUNICIPAL BOND FUND DEBT FUNDS INDEX BOND INDEX* ------------------- ------------------------ ------------------------- 2/24/99 10000.00 10000.00 10000.00 12/31/99 9607.00 9543.00 9721.00 12/31/00 10651.00 10602.00 10856.00 12/31/01 11095.00 11042.00 11413.00
Past performance is not predictive of future results. The Lehman Brothers Municipal Bond Index is an unmanaged index considered representative of the broad market for investment-grade, tax-exempt bonds with a maturity of at least one year, issued on or after January 1, 1991, with a deal size greater than $50 million and a maturity size of at least $5 million, and having a fixed rate coupon. The Lipper General Municipal Debt Funds Index represents average performance of the 30 largest general municipal debt funds tracked by Lipper Analytical Services, Inc. Performance includes a contractual reimbursement of Fund expenses by the Advisor. Absent these reimbursements, total returns may have been lower. * Performance since 3/1/99 FUND PERFORMANCE For the year ended December 31, 2001, Columbia National Municipal Bond Fund returned 4.16%. In comparison, the Lipper General Municipal Debt Funds Index returned 4.15% and the Lehman Brothers Municipal Bond Index returned 5.13%. SETTING A FOUNDATION FOR RECOVERY Short-term interest rates fell throughout 2001, as the Fed adopted an aggressive easing policy to offset deteriorating economic growth. Over the course of the year, the Fed lowered the federal funds rate a total of 4.75% to 1.75%, its lowest level in 40 years. During the fourth quarter, stock prices rallied back from their lows after the 9/11 terrorist attacks as investors became more confident about prospects for a recovery in 2002. At the same time, bond prices declined and interest rates moved higher, anticipating the end of the easing cycle. MUNICIPAL ISSUERS TAKE ADVANTAGE OF LOW RATES In the municipal bond market, the supply of new issues across the nation increased dramatically, particularly as confidence in an economic recovery increased. State and local issuers rushed to market in order to finance new projects at low rates and refinance existing debt. The substantial new supply of bonds exceeded demand, driving prices somewhat lower in the fourth quarter. This imbalance of supply and demand is likely to reverse in the first few months of 2002 as investors try to invest large interest payments coming due in January, which is typically a quiet period for new issuance. After years of rising surpluses, state and local finances remain reasonably healthy throughout the country. Nevertheless, municipal finances suffered in 2001 as slowing economic activity and rising unemployment rates reduced tax receipts and as legislators focused on tightening budgets. PORTFOLIO ACTIVITY During 2001, the portfolio's returns benefited from falling short- and intermediate-term municipal yields and rising prices. At the same time, performance was hampered by longer-term holdings that did not appreciate during the year. The Fed's efforts to push down short-term interest rates resulted in a substantial increase in the difference in 26 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- yield between short- and long-term maturities. We took advantage of that difference during the year, executing trades to sell very low yielding short-term bonds and purchase intermediate-term bonds, adding substantial yield and total return potential to the Fund. SEEKING OPPORTUNITIES The foundation has been laid for a recovery in economic activity. Once it is clear that the economy is on track for expansion and that growth in corporate profits is improving, the Fed will likely begin to consider tightening interest rates. However, we believe that this will be a gradual process, so that income earned in the Fund will help to offset some price depreciation as yields rise. As always, we continue to look for opportunities to improve the yield, quality and structure of the Fund's holdings. Yields on municipal bonds continue to be attractive on a tax-adjusted basis as compared to taxable alternatives, particularly for investors in the highest tax brackets. Greta R. Clapp Portfolio Manager TOP TEN STATES % of Net Assets
12/31/01 6/30/01 Oregon 22.0 27.5 Texas 14.8 12.9 Washington 13.9 13.4 Tennessee 6.0 -- Illinois 5.1 4.1 Michigan 4.7 3.7 Alaska 3.5 4.7 Mississippi 2.7 3.5 New York 1.9 3.5 Louisiana.............................................. 1.8 --
PORTFOLIO QUALITY % of Portfolio Holdings 12/31/01 [PIE CHART] Aaa 48.1% Aa 17.6% Not Rated 16.6% A 10.9% Baa 6.8%
6/30/01 [PIE CHART] Aaa 40.2% Not Rated 21.3% A 16.0% Aa 13.9% Baa 8.6%
As rated by Moody's Investors Service, Inc. 27 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- COLUMBIA OREGON MUNICIPAL BOND FUND AVERAGE ANNUAL TOTAL RETURNS As of December 31, 2001
LEHMAN LIPPER CMBF G.O. OREGON ----- ------ ------ 1 Year 4.55% 5.09% 4.19% 5 Years 5.13% 5.92% 4.86% 10 Years 5.51% 6.51% 5.58%
GROWTH OF $10,000 OVER 10 YEARS [LINE GRAPH]
COLUMBIA OREGON MUNICIPAL LEHMAN GENERAL OBLIGATION LIPPER OREGON MUNICIPAL BOND FUND BOND INDEX DEBT FUNDS ------------------------- ------------------------- ----------------------- 12/31/91 10000.00 10000.00 10000.00 12/31/92 10646.00 10877.00 10791.00 12/31/93 11788.30 12152.90 12080.50 12/31/94 11236.60 11584.10 11277.20 12/31/95 12826.60 13456.10 13162.70 12/31/96 13310.20 14093.90 13583.90 12/31/97 14422.90 15334.20 14753.50 12/31/98 15227.70 16357.00 15566.40 12/31/99 14824.20 16110.00 14876.80 12/31/00 16348.10 17878.90 16467.20 12/31/01 17091.90 18790.00 17205.00
Past performance is not predictive of future results. The Lehman General Obligation Bond Index is an 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. The Lipper Oregon Municipal Debt Funds average measures performance of all Oregon municipal bond funds tracked by Lipper Analytical Services, Inc. PORTFOLIO PERFORMANCE For the year ended December 31, 2001, Columbia Oregon Municipal Bond Fund returned 4.55%. In comparison, the Lipper Oregon Municipal Debt Funds Index returned 4.19%, and the Lehman General Obligation Bond Index returned 5.09%. SETTING A FOUNDATION FOR RECOVERY Short-term interest rates fell throughout 2001, as the Fed adopted an aggressive easing policy to offset deteriorating economic growth. Over the course of the year, the Fed lowered the federal funds rate a total of 4.75% to 1.75%, its lowest level in 40 years. During the fourth quarter, stock prices rallied back from their lows after the 9/11 terrorist attacks, as investors became more confident about prospects for a recovery in 2002. At the same time, bond prices declined and interest rates moved higher, as investors anticipated the end of the easing cycle. MUNICIPAL ISSUERS TAKE ADVANTAGE OF LOW RATES In the municipal bond market, the supply of new issues across the nation increased dramatically, particularly as confidence in an economic recovery increased. State and local issuers rushed to market in order to finance new projects at low rates and refinance existing debt. The substantial new supply of bonds exceeded demand, driving prices somewhat lower in the fourth quarter. This imbalance of supply and demand is likely to reverse in the first few months of 2002 as investors try to invest large interest payments coming due in January, which is typically a quiet period for new issuance. After years of rising surpluses, state and local finances remain reasonably healthy throughout the country. Nevertheless, municipal finances suffered in 2001 as slowing economic activity and rising unemployment rates reduced tax receipts and as legislators focused on tightening budgets. PORTFOLIO ACTIVITY During 2001, the portfolio's returns benefited from falling short- and intermediate-term municipal yields and rising prices. The Fed's efforts to push down short-term interest rates resulted in a substantial increase in the difference in yield between short- and long-term maturities. We took advantage of that difference during the year, executing trades 28 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- to sell very low yielding short-term bonds, and purchase intermediate-term bonds, adding substantial yield and total return potential to the Fund. In Oregon, the heavy concentration of technology-related industry and its recent struggles have taken their toll, leaving the state with one of the highest unemployment rates in the nation. However, we believe this does not pose a serious threat to the credit quality of the holdings in the Fund, which continues to focus on high quality issues. SEEKING OPPORTUNITIES The foundation has been laid for a recovery in economic activity. Once it is clear that the economy is on track for expansion and that growth in corporate profits is improving, the Fed will likely begin to consider tightening interest rates. However, we believe that this will be a gradual process, so that income earned in the Fund will help to offset some price depreciation as yields rise. As always, we continue to look for opportunities to improve the yield, quality and structure of the Fund's holdings. Yields on municipal bonds continue to be attractive on a tax-adjusted basis compared to taxable alternatives, particularly for investors in the highest tax brackets. Greta R. Clapp Portfolio Manager PORTFOLIO COMPOSITION % of Net Assets
12/31/01 6/30/01 Revenue 34.3 34.9 Insured Revenue 20.7 22.4 General Obligation 15.4 14.4 Insured General Obligation 14.6 15.3 State General Obligation 4.6 4.4 Other Bonds 2.9 3.4 Pre-Refunded Bonds 2.7 2.1 U.S. Territories 0.6 1.1 Cash 4.2 2.0
PORTFOLIO QUALITY % of Portfolio Holdings December 31, 2001 [PIE CHART] Aaa 36.8% Aa 38.5% A 8.4% Baa 4.5% Not Rated 11.8%
June 30, 2001 [PIE CHART] Aaa 38.8% Aa 34.6% A 11.9% Baa 3.4% Not Rated 11.3%
As rated by Moody's Investors Service, Inc. 29 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- COLUMBIA HIGH YIELD FUND AVERAGE ANNUAL TOTAL RETURNS As of December 31, 2001
MERRILL SALOMON HIGH MERRILL CHYF BB YIELD BB ---- ------- ------- ------- 1 Year 6.63% 13.48% 6.20% 9.99% 5 Years 6.46% 7.79% 3.95% 6.29% Inception (10/1/93) 7.24% 8.41% 6.24% 7.20%
GROWTH OF $10,000 SINCE INCEPTION [LINE GRAPH]
MERRILL LYNCH U.S. COLUMBIA HIGH YIELD MERRILL LYNCH HIGH YIELD, CASH PAY FUND INTERMEDIATE BB INDEX SALOMON BB INDEX INDEX ------------------- --------------------- ---------------- -------------------- 10/1/93 10000.00 10000.00 10000.00 10000.00 12/31/93 10112.00 10204.00 10185.00 10347.00 12/31/94 10019.00 10190.00 10048.00 10226.00 12/31/95 11935.00 12130.00 12321.00 12262.00 12/31/96 13060.00 13127.00 13429.00 13618.00 12/31/97 14719.00 14600.00 15142.00 15364.00 12/31/98 15640.00 15524.00 16361.00 15926.00 12/31/99 16012.00 15910.00 16728.00 16176.00 12/31/00 16750.00 16186.00 17223.00 15563.00 12/31/01 17858.00 17805.00 19542.00 16531.00
Past performance is not predictive of future results. The Salomon BB Index is an unmanaged index that measures the total return of bonds with a maturity of at least one year and includes bonds rated BB by Standard & Poor's or bonds rated Ba by Moody's Investors Service. The Merrill Lynch U.S. High Yield, Cash Pay Index is an unmanaged index of non-investment grade corporate bonds. The Advisor intends to replace the Salomon BB Index with the Merrill Lynch U.S. High Yield, Cash Pay Index, as the Fund's broad index, and it is more representative of a broad based index. The Merrill Lynch Intermediate BB Index is a market weighted index, consisting of BB cash pay bonds, which are U.S. dollar denominated bonds issued in the U.S. domestic market with maturities between 1 and 10 years. AVOIDING DEFAULTS BENEFITS PERFORMANCE For the year ending December 31, 2001, Columbia High Yield Fund posted a return of 6.63%. The level of defaults and the number of issuers whose credit quality was downgraded by the rating agencies approached all time highs in 2001. In this environment, the portfolio did not have any defaults and had more issuers upgraded than downgraded. Our philosophy of concentrating on companies with improving fundamentals helped our relative performance. THE YEAR IN REVIEW The high yield market began the year with a big rally as the Federal Reserve initiated short-term interest rate cuts to boost economic growth. In the second quarter, the economy showed signs of weakness, and the high yield market declined a little over 1% (as measured by the Merrill Lynch U.S. High Yield, Cash Pay Index). The market was dealt another blow in the third quarter: the devastating and unexpected events of 9/11 shattered consumer confidence and further pushed out the anticipated economic recovery. During this quarter, the high yield market declined more than 4%. Finally, in the fourth quarter, high yield issues rebounded as investors began to look forward to an economic recovery in 2002, due to additional Fed easing and a potential bottoming in some economic numbers. SHIFTS IN INDUSTRY EMPHASIS During the year, a number of changes were made to the industry weightings in the portfolio. We reduced our weighting in telecommunications by over 6% and energy by approximately 3% due to deteriorating fundamentals in both areas. At the same time, we increased our weighting in more defensive industries, such as health care (up over 6%), food and drug retail (up almost 5%), and consumer products (up about 3.5%). Throughout 2001, the large telecommunications sector had a negative effect on the high yield market's performance as credit quality continued to deteriorate. Over the last six months of the year, the telecommunications sector returned -13.8%, bringing the industry's annual return to -33.2%. Our underweighting in telecommunications (just under half the weighting of our benchmark) helped the Fund's relative performance. 30 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- SOME NOTABLE ISSUES The Fund's three top performers in 2001 were United Rentals, American Axle and Silgan. United Rentals dealt with the economic slowdown by cutting expenses and reducing equipment purchases, a strategy that resulted in improved cash flow to pay down debt. Along with good cost controls, American Axle's backlog of new business and increased product content per vehicle helped sustain performance. Finally, metal food can manufacturer Silgan benefited as investors favored non-cyclical securities for much of the year. Some notable underperforming securities for the year were Nextel Communications (telecommunications), AES Corp. and Calpine (both electric utilities). Nextel's bonds traded down in tandem with the decline in the telecommunications sector. We believe the bonds, at year end, are attractively priced at yields above 14%. The company has strong cash flow, improving margins and a unique product targeted to business customers. Both Calpine and AES underperformed with the news of the Enron bankruptcy, which sparked fears of large counterparty exposure and shook investor confidence in the independent power sector. Moody's, a credit rating agency, downgraded Calpine and several other independent power producers, which put pressure on bond prices. Subsequent to these events, Calpine issued a new convertible debt security, which removed the specter of a liquidity crunch. Also, to help restore investor confidence, most participants in this sector announced balance sheet improvement plans or issued equity. Calpine and AES are still held in the portfolio at year end, and we expect their performance to improve as they execute strategies to improve their balance sheets and as the Enron crisis recedes. RECOVERY SHOULD BOOST HIGH YIELD Despite the uncertainty caused by events in recent months, we believe there are opportunities ahead. We believe the high yield market will benefit from an improving environment and offer compelling opportunities for investors, provided the expectations of an economic recovery are realized in 2002. Jeffrey L. Rippey and Kurt M. Havnaer Portfolio Managers TOP FIVE SECTORS % of Net Assets
12/31/01 6/30/01 Consumer Cyclical 25.6 22.7 Consumer Staples 22.9 14.0 Business & Consumer Services 16.9 17.9 Basic Industries & Mfg. 7.0 7.7 Energy 4.7 9.7
PORTFOLIO QUALITY % of Portfolio Holdings December 31, 2001 [PIE CHART] B 49.5% Ba 48.6% Baa 1.9%
June 30, 2001 [PIE CHART] B 45.3% Ba 44.7% Baa 10.0%
As rated by Moody's Investors Service, Inc. 31 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- COLUMBIA DAILY INCOME COMPANY AVERAGE ANNUAL TOTAL RETURNS As of December 31, 2001
CDIC CPI ----- ----- 1 Year 3.70% 1.60% 5 Years 4.92% 2.20% 10 Years 4.45% 2.51%
GROWTH OF $10,000 OVER 10 YEARS [LINE GRAPH]
COLUMBIA DAILY INCOME COMPANY CONSUMER PRICE INDEX (INFLATION) ----------------------------- -------------------------------- 12/31/91 10000.00 10000.00 12/31/92 10325.00 10290.00 12/31/93 10584.00 10568.00 12/31/94 10974.00 10853.00 12/31/95 11576.00 11124.00 12/31/96 12150.00 11492.00 12/31/97 12771.00 11687.00 12/31/98 13421.00 11874.00 12/31/99 14053.00 12195.00 12/31/00 14897.00 12609.00 12/31/01 15451.00 12811.00
Past performance is not predictive of future results. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency. Although the Fund seeks to preserve the value of your investment at $1 per share, it is possible to lose money by investing in the Fund. PORTFOLIO HIGHLIGHTS % of Net Assets
12/31/01 6/30/01 Current Yield 1.50% 3.61% Compound Yield 1.51% 3.68% Based on the 7-day period ending on each date shown Weighted Average Maturity 33 days 40 days
KEEPING AHEAD OF INFLATION For the year ended December 31, 2001, Columbia Daily Income Company returned 3.70%. This return continues to compare favorably to the general level of inflation. For instance, the Consumer Price Index (CPI) was up only 1.60% for the year. We anticipate inflation to remain benign over the next 12 months. SHORT-TERM INTEREST RATES DROP During 2001, yields fell dramatically on short- and intermediate-term Treasuries due to the Fed's concerted effort to reinvigorate the economy by easing short-term interest rates. The economy's 10-year expansion ended in March, although the third quarter was the first in which negative growth was recorded (as measured by the gross domestic product). To breathe new life into the economy, the Fed lowered the federal funds rate a total of 4.75% in 11 moves. As a result, short-term interest rates have reached their lowest levels in 40 years. Historically, it has taken 9 to 12 months for a change in short-term rates to make an impact on the economy. In the meantime, the Bush administration introduced tax relief legislation that should help bolster growth. Due to the substantial monetary and fiscal stimulus packages introduced in 2001, the market is expecting an economic rebound in the second half of 2002. LOWER YIELDS ON THE FUND As short-term interest rates have declined, the Fund has also experienced a significant drop in yield. The current 7-day yield for the Fund as of December 31, 2001, was 1.50%. As always, the Fund invests in high quality, short-term debt instruments and maintains an average maturity of 30 to 50 days, providing a very liquid, low risk investment. Leonard A. Aplet Portfolio Manager 32 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA COMMON STOCK FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH YEAR
2001 2000 1999 1998 1997 ------ ------ ------ ------ ------ - --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF YEAR $24.34 $28.90 $24.40 $22.02 $19.26 - --------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)...................... 0.07 (0.01) 0.03 0.09 0.29 Net realized and unrealized gains (losses) on investments..................................... (4.35) (1.54) 6.25 5.68 4.58 - --------------------------------------------------------------------------------------------------------------------------------- Total from investment operations................ (4.28) (1.55) 6.28 5.77 4.87 - --------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Dividends from net investment income.............. (0.07) -- (0.03) (0.13) (0.27) Distributions from capital gains.................. (0.02) (3.01) (1.75) (3.26) (1.84) - --------------------------------------------------------------------------------------------------------------------------------- Total distributions............................. (0.09) (3.01) (1.78) (3.39) (2.11) - --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF YEAR $19.97 $24.34 $28.90 $24.40 $22.02 - --------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN....................................... -17.60% -5.73% 25.76% 26.28% 25.37% RATIOS/SUPPLEMENTAL DATA Net assets, end of year (in thousands)............. $681,397 $895,134 $959,910 $797,147 $783,906 Ratio of expenses to average net assets............ 0.80% 0.75% 0.77% 0.80% 0.77% Ratio of net investment income (loss) to average net assets........................................ 0.32% (0.05)% 0.09% 0.56% 1.37% Portfolio turnover rate............................ 114% 104% 97% 141% 90%
COLUMBIA GROWTH FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH YEAR
2001 2000 1999 1998 1997 ------ ------ ------ ------ ------ - --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF YEAR $40.07 $48.91 $42.51 $34.34 $30.74 - --------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)...................... (0.02) (0.08) (0.03) 0.03 0.19 Net realized and unrealized gains (losses) on investments..................................... (8.55) (3.49) 11.09 10.39 7.90 - --------------------------------------------------------------------------------------------------------------------------------- Total from investment operations................ (8.57) (3.57) 11.06 10.42 8.09 - --------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Dividends from net investment income.............. -- -- (0.00)* (0.08) (0.17) Distributions from capital gains.................. (0.15) (5.27) (4.66) (2.17) (4.32) - --------------------------------------------------------------------------------------------------------------------------------- Total distributions............................. (0.15) (5.27) (4.66) (2.25) (4.49) - --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF YEAR $31.35 $40.07 $48.91 $42.51 $34.34 - --------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN....................................... -21.40% -7.94% 26.02% 30.34% 26.32% RATIOS/SUPPLEMENTAL DATA Net assets, end of year (in thousands)............. $1,325,844 $1,919,227 $2,160,739 $1,753,024 $1,324,918 Ratio of expenses to average net assets............ 0.72% 0.65% 0.65% 0.68% 0.71% Ratio of net investment income (loss) to average net assets........................................ (0.07)% (0.18)% (0.07)% 0.21% 0.55% Portfolio turnover rate............................ 122% 114% 118% 105% 96%
*Amount represents less than $0.01 per share. See Accompanying Notes to Financial Statements 33 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA INTERNATIONAL STOCK FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH YEAR
2001 2000 1999 1998 1997 ------ ------ ------ ------ ------ - --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF YEAR $14.77 $22.81 $15.45 $13.70 $13.86 - --------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)...................... 0.01 (0.04) (0.05) (0.00)* 0.03 Net realized and unrealized gains (losses) on investments and foreign currency transactions... (2.74) (5.17) 9.00 1.76 1.56 - --------------------------------------------------------------------------------------------------------------------------------- Total from investment operations................ (2.73) (5.21) 8.95 1.76 1.59 - --------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Dividends from net investment income.............. (0.01) -- -- -- -- Distributions from capital gains.................. -- (2.83) (1.59) (0.01) (1.75) - --------------------------------------------------------------------------------------------------------------------------------- Total distributions............................. (0.01) (2.83) (1.59) (0.01) (1.75) - --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF YEAR $12.03 $14.77 $22.81 $15.45 $13.70 - --------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN....................................... -18.47% -22.64% 57.93% 12.83% 11.47% RATIOS/SUPPLEMENTAL DATA Net assets, end of year (in thousands)............. $135,626 $175,316 $239,223 $134,193 $146,281 Ratio of expenses to average net assets............ 1.56% 1.42% 1.48% 1.56% 1.62% Ratio of net investment income (loss) to average net assets........................................ 0.06% (0.19)% (0.35)% (0.02)% 0.19% Portfolio turnover rate............................ 130% 112% 94% 74% 122%
*Amount represents less than $0.01 per share. COLUMBIA SPECIAL FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH YEAR
2001 2000 1999 1998 1997 ------ ------ ------ ------ ------ - --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF YEAR $25.99 $29.93 $23.62 $20.26 $19.85 - --------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)...................... (0.11) (0.10) (0.16) (0.03) 0.01 Net realized and unrealized gains (losses) on investments..................................... (5.35) 4.45 8.74 3.40 2.50 - --------------------------------------------------------------------------------------------------------------------------------- Total from investment operations................ (5.46) 4.35 8.58 3.37 2.51 - --------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Dividends from net investment income.............. -- -- -- (0.01) -- Distributions from capital gains.................. (0.93) (8.29) (2.27) (0.00)* (2.10) - --------------------------------------------------------------------------------------------------------------------------------- Total distributions............................. (0.93) (8.29) (2.27) (0.01) (2.10) - --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF YEAR $19.60 $25.99 $29.93 $23.62 $20.26 - --------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN....................................... -20.98% 13.84% 36.33% 16.64% 12.64% RATIOS/SUPPLEMENTAL DATA Net assets, end of year (in thousands)............. $786,071 $1,095,525 $918,322 $969,359 $1,249,718 Ratio of expenses to average net assets............ 1.08% 0.99% 1.09% 1.03% 0.98% Ratio of net investment income (loss) to average net assets........................................ (0.49)% (0.38)% (0.64)% (0.09)% 0.04% Portfolio turnover rate............................ 186% 169% 135% 135% 166%
*Amount represents less than $0.01 per share. See Accompanying Notes to Financial Statements 34 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA SMALL CAP FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH YEAR
2001 2000 1999 1998 1997 ------ ------ ------ ------ ------ - --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF YEAR $25.87 $27.26 $17.43 $16.65 $12.99 - --------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment loss............................... (0.13) (0.10) (0.14) (0.09) (0.08) Net realized and unrealized gains (losses) on investments..................................... (3.54) 1.75 10.45 0.87 4.51 - --------------------------------------------------------------------------------------------------------------------------------- Total from investment operations................ (3.67) 1.65 10.31 0.78 4.43 - --------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Distributions from capital gains.................. -- (3.04) (0.48) (0.00)* (0.77) - --------------------------------------------------------------------------------------------------------------------------------- Total distributions............................. -- (3.04) (0.48) (0.00) (0.77) - --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF YEAR $22.20 $25.87 $27.26 $17.43 $16.65 - --------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN....................................... -14.19% 5.85% 59.15% 4.69% 34.10% RATIOS/SUPPLEMENTAL DATA Net assets, end of year (in thousands)............. $617,966 $518,970 $290,374 $160,472 $96,431 Ratio of expenses to average net assets............ 1.23% 1.22% 1.30% 1.34% 1.46% Ratio of net investment loss to average net assets............................................ (0.71)% (0.44)% (0.84)% (0.68)% (0.81)% Portfolio turnover rate............................ 129% 145% 188% 158% 172%
*Amount represents less than $0.01 per share. COLUMBIA REAL ESTATE EQUITY FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH YEAR
2001 2000 1999 1998 1997 ------ ------ ------ ------ ------ - --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF YEAR $17.89 $14.57 $15.76 $18.80 $16.16 - --------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income............................. 0.79 0.81 0.82 0.75 0.79 Net realized and unrealized gains (losses) on investments..................................... 0.15 3.32 (1.19) (3.04) 3.15 - --------------------------------------------------------------------------------------------------------------------------------- Total from investment operations................ 0.94 4.13 (0.37) (2.29) 3.94 - --------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Dividends from net investment income.............. (0.72) (0.75) (0.71) (0.66) (0.62) Distributions from capital gains.................. -- -- -- -- (0.51) Return of capital................................. (0.07) (0.06) (0.11) (0.09) (0.17) - --------------------------------------------------------------------------------------------------------------------------------- Total distributions............................. (0.79) (0.81) (0.82) (0.75) (1.30) - --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF YEAR $18.04 $17.89 $14.57 $15.76 $18.80 - --------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN....................................... 5.41% 28.84% -2.45% -12.33% 24.74% RATIOS/SUPPLEMENTAL DATA Net assets, end of year (in thousands)............. $621,590 $436,764 $241,716 $164,172 $151,554 Ratio of expenses to average net assets............ 0.95% 0.96% 0.99% 1.01% 1.02% Ratio of net investment income to average net assets............................................ 4.65% 5.16% 5.66% 4.60% 4.87% Portfolio turnover rate............................ 41% 25% 29% 6% 34%
See Accompanying Notes to Financial Statements 35 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA TECHNOLOGY FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
2001 2000(1) ------ --------- - -------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $8.63 $10.00 - -------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)...................... (0.08) 0.01 Net realized and unrealized losses on investments..................................... (2.42) (1.37) - --------------------------------------------------------------------------------- Total from investment operations................ (2.50) (1.36) - --------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Dividends from net investment income.............. -- (0.01) - --------------------------------------------------------------------------------- Total distributions............................. -- (0.01) - -------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $6.13 $8.63 - -------------------------------------------------------------------------------- TOTAL RETURN....................................... -28.97% -13.78%(2) RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in thousands)........... $10,385 $4,327 Ratio of expenses to average net assets............ 1.69% 1.48%(3) Ratio of expenses to average net assets before voluntary reimbursement........................... 2.82% 8.97%(3) Ratio of net investment income (loss) to average net assets........................................ (1.26)% 0.99%(3) Portfolio turnover rate............................ 413% 63%(2)
(1) From inception of operations on October 27, 2000. (2) Not annualized (3) Annualized COLUMBIA STRATEGIC VALUE FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
2001 2000(1) ------ --------- - -------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $11.23 $10.00 - -------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income............................. 0.05 0.02 Net realized and unrealized gains on investments..................................... 3.29 1.23 - --------------------------------------------------------------------------------- Total from investment operations................ 3.34 1.25 - --------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Dividends from net investment income.............. (0.05) (0.02) - --------------------------------------------------------------------------------- Total distributions............................. (0.05) (0.02) - -------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $14.52 $11.23 - -------------------------------------------------------------------------------- TOTAL RETURN....................................... 29.76% 12.25%(2) RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in thousands)........... $139,504 $9,526 Ratio of expenses to average net assets............ 1.13% 1.34%(3) Ratio of expenses to average net assets before voluntary reimbursement........................... 1.13% 5.31%(3) Ratio of net investment income to average net assets............................................ 0.71% 1.92%(3) Portfolio turnover rate............................ 278% 64%(2)
(1) From inception of operations on October 27, 2000. (2) Not annualized (3) Annualized See Accompanying Notes to Financial Statements 36 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA BALANCED FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH YEAR
2001 2000 1999 1998 1997 ------ ------ ------ ------ ------ - --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF YEAR $22.96 $24.72 $23.17 $21.42 $20.32 - --------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income............................. 0.58 0.67 0.69 0.72 0.84 Net realized and unrealized gains (losses) on investments..................................... (2.28) (0.41) 2.21 3.52 2.92 - --------------------------------------------------------------------------------------------------------------------------------- Total from investment operations................ (1.70) 0.26 2.90 4.24 3.76 - --------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Dividends from net investment income.............. (0.59) (0.68) (0.69) (0.73) (0.83) Distributions from capital gains.................. -- (1.34) (0.66) (1.76) (1.83) - --------------------------------------------------------------------------------------------------------------------------------- Total distributions............................. (0.59) (2.02) (1.35) (2.49) (2.66) - --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF YEAR $20.67 $22.96 $24.72 $23.17 $21.42 - --------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN....................................... -7.40% 0.82% 12.70% 20.07% 18.74% RATIOS/SUPPLEMENTAL DATA Net assets, end of year (in thousands)............. $983,749 $1,126,854 $1,040,940 $975,381 $792,378 Ratio of expenses to average net assets............ 0.67% 0.65% 0.66% 0.67% 0.68% Ratio of net investment income to average net assets............................................ 2.73% 2.73% 2.85% 3.22% 3.83% Portfolio turnover rate............................ 111% 105% 133% 128% 149%
COLUMBIA SHORT TERM BOND FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH YEAR
2001 2000 1999 1998 1997 ------ ------ ------ ------ ------ - --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF YEAR $8.36 $8.20 $8.39 $8.29 $8.24 - --------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income............................. 0.46 0.42 0.33 0.38 0.41 Net realized and unrealized gains (losses) on investments..................................... 0.21 0.16 (0.18) 0.14 0.05 - --------------------------------------------------------------------------------------------------------------------------------- Total from investment operations................ 0.67 0.58 0.15 0.52 0.46 - --------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Dividends from net investment income.............. (0.46) (0.42) (0.33) (0.38) (0.41) Distributions from capital gains.................. (0.02) -- (0.01) (0.04) -- - --------------------------------------------------------------------------------------------------------------------------------- Total distributions............................. (0.48) (0.42) (0.34) (0.42) (0.41) - --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF YEAR $8.55 $8.36 $8.20 $8.39 $8.29 - --------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN....................................... 8.07% 7.26% 1.80% 6.43% 5.76% RATIOS/SUPPLEMENTAL DATA Net assets, end of year (in thousands)............. $62,930 $35,856 $38,072 $40,578 $37,837 Ratio of expenses to average net assets............ 0.75% 0.88% 0.91% 0.89% 0.87% Ratio of expenses to average net assets before contractual reimbursement......................... 0.91% 0.90% 0.91% 0.89% 0.87% Ratio of net investment income to average net assets............................................ 5.26% 5.09% 4.09% 4.55% 4.99% Portfolio turnover rate............................ 137% 147% 211% 182% 184%
See Accompanying Notes to Financial Statements 37 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA FIXED INCOME SECURITIES FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH YEAR
2001 2000 1999 1998 1997 ------ ------ ------ ------ ------ - --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF YEAR $12.97 $12.44 $13.42 $13.41 $13.08 - --------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income............................. 0.78 0.82 0.78 0.83 0.85 Net realized and unrealized gains (losses) on investments..................................... 0.25 0.53 (0.98) 0.14 0.36 - --------------------------------------------------------------------------------------------------------------------------------- Total from investment operations................ 1.03 1.35 (0.20) 0.97 1.21 - --------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Dividends from net investment income.............. (0.78) (0.82) (0.78) (0.83) (0.85) Distributions from capital gains.................. -- -- (0.00)* (0.13) (0.03) - --------------------------------------------------------------------------------------------------------------------------------- Total distributions............................. (0.78) (0.82) (0.78) (0.96) (0.88) - --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF YEAR $13.22 $12.97 $12.44 $13.42 $13.41 - --------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN....................................... 8.13% 11.27% -1.50% 7.44% 9.56% RATIOS/SUPPLEMENTAL DATA Net assets, end of year (in thousands)............. $465,743 $378,799 $397,147 $422,330 $381,333 Ratio of expenses to average net assets............ 0.66% 0.66% 0.64% 0.65% 0.66% Ratio of net investment income to average net assets............................................ 5.92% 6.53% 6.03% 6.15% 6.43% Portfolio turnover rate............................ 110% 105% 155% 107% 196%
*Amount represents less than $0.01 per share. COLUMBIA NATIONAL MUNICIPAL BOND FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
2001 2000 1999(1) ------ ------ --------- - --------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $9.82 $9.28 $10.00 - --------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income............................. 0.44 0.44 0.34 Net realized and unrealized gains (losses) on investments..................................... (0.03) 0.54 (0.72) - ------------------------------------------------------------------------------------------------ Total from investment operations................ 0.41 0.98 (0.38) - ------------------------------------------------------------------------------------------------ LESS DISTRIBUTIONS: Dividends from net investment income.............. (0.44) (0.44) (0.34) Distributions from capital gains.................. (0.02) -- -- - ------------------------------------------------------------------------------------------------ Total distributions............................. (0.46) (0.44) (0.34) - --------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $9.77 $9.82 $9.28 - --------------------------------------------------------------------------------------------- TOTAL RETURN....................................... 4.16% 10.87% -3.93%(2) RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in thousands)........... $13,769 $10,898 $10,135 Ratio of expenses to average net assets............ 0.65% 0.65% 0.65%(3) Ratio of expenses to average net assets before contractual reimbursement......................... 1.31% 1.29% 1.72%(3) Ratio of net investment income to average net assets............................................ 4.47% 4.68% 4.21%(3) Portfolio turnover rate............................ 20% 21% 12%(3)
(1) From inception of operations on February 10, 1999. (2) Not annualized (3) Annualized See Accompanying Notes to Financial Statements 38 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA OREGON MUNICIPAL BOND FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH YEAR
2001 2000 1999 1998 1997 ------ ------ ------ ------ ------ - --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF YEAR $12.13 $11.56 $12.46 $12.47 $12.15 - --------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income............................. 0.57 0.58 0.56 0.58 0.60 Net realized and unrealized gains (losses) on investments..................................... (0.02) 0.58 (0.88) 0.10 0.39 - --------------------------------------------------------------------------------------------------------------------------------- Total from investment operations................ 0.55 1.16 (0.32) 0.68 0.99 - --------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Dividends from net investment income.............. (0.57) (0.58) (0.56) (0.58) (0.60) Distributions from capital gains.................. (0.03) (0.01) (0.02) (0.11) (0.07) - --------------------------------------------------------------------------------------------------------------------------------- Total distributions............................. (0.60) (0.59) (0.58) (0.69) (0.67) - --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF YEAR $12.08 $12.13 $11.56 $12.46 $12.47 - --------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN....................................... 4.55% 10.28% -2.65% 5.58% 8.36% RATIOS/SUPPLEMENTAL DATA Net assets, end of year (in thousands)............. $491,638 $436,544 $409,919 $462,809 $409,148 Ratio of expenses to average net assets............ 0.57% 0.58% 0.57% 0.58% 0.57% Ratio of net investment income to average net assets............................................ 4.64% 4.92% 4.64% 4.60% 4.87% Portfolio turnover rate............................ 14% 22% 28% 17% 17%
COLUMBIA HIGH YIELD FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH YEAR
2001 2000 1999 1998 1997 ------ ------ ------ ------ ------ - --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF YEAR $8.98 $9.32 $9.84 $10.04 $9.94 - --------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income............................. 0.69 0.75 0.74 0.76 0.81 Net realized and unrealized gains (losses) on investments..................................... (0.11) (0.34) (0.51) (0.15) 0.40 - --------------------------------------------------------------------------------------------------------------------------------- Total from investment operations................ 0.58 0.41 0.23 0.61 1.21 - --------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Dividends from net investment income.............. (0.69) (0.75) (0.74) (0.76) (0.81) Distributions from capital gains.................. -- -- (0.01) (0.05) (0.30) - --------------------------------------------------------------------------------------------------------------------------------- Total distributions............................. (0.69) (0.75) (0.75) (0.81) (1.11) - --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF YEAR $8.87 $8.98 $9.32 $9.84 $10.04 - --------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN....................................... 6.63% 4.61% 2.38% 6.26% 12.70% RATIOS/SUPPLEMENTAL DATA Net assets, end of year (in thousands)............. $238,994 $97,575 $71,678 $57,524 $39,278 Ratio of expenses to average net assets............ 0.85% 0.93% 0.91% 0.95% 1.00% Ratio of expenses to average net assets before voluntary reimbursement........................... 0.85% 0.93% 0.91% 0.95% 1.02% Ratio of net investment income to average net assets............................................ 7.64% 8.22% 7.71% 7.52% 8.05% Portfolio turnover rate............................ 69% 50% 49% 79% 124%
See Accompanying Notes to Financial Statements 39 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA DAILY INCOME COMPANY FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH YEAR
2001 2000 1999 1998 1997 ------ ------ ------ ------ ------ - --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF YEAR $1.00 $1.00 $1.00 $1.00 $1.00 - --------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income............................. 0.036 0.058 0.046 0.050 0.050 - --------------------------------------------------------------------------------------------------------------------------------- Total from investment operations................ 0.036 0.058 0.046 0.050 0.050 - --------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Dividends from net investment income.............. (0.036) (0.058) (0.046) (0.050) (0.050) - --------------------------------------------------------------------------------------------------------------------------------- Total distributions............................. (0.036) (0.058) (0.046) (0.050) (0.050) - --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF YEAR $1.00 $1.00 $1.00 $1.00 $1.00 - --------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN....................................... 3.70% 6.00% 4.71% 5.09% 5.11% RATIOS/SUPPLEMENTAL DATA Net assets, end of year (in thousands)............. $1,253,535 $1,198,151 $1,165,289 $1,109,141 $1,169,096 Ratio of expenses to average net assets............ 0.60% 0.60% 0.64% 0.62% 0.63% Ratio of net investment income to average net assets............................................ 3.61% 5.82% 4.61% 4.97% 4.99%
See Accompanying Notes to Financial Statements 40 SCHEDULE OF INVESTMENTS - --------------------------------------------------------------------------------
COLUMBIA COMMON STOCK FUND DECEMBER 31, 2001 SHARES VALUE - ----------------------------------------------------------------------- COMMON STOCKS (95.3%) ADVERTISING AGENCIES (0.5%) Interpublic Group of Companies, Inc., The................................ 118,100 $ 3,488,674 -------------- ALUMINUM (0.6%) Alcan, Inc. ......................... 124,100 4,458,913 -------------- AUTO PARTS: ORIGINAL EQUIPMENT (0.6%) Magna International, Inc. (Class A)................................. 61,650 3,912,925 -------------- BANKS (2.9%) Bank of America Corp. ............... 181,405 11,419,445 Bank One Corp. ...................... 211,400 8,255,170 -------------- 19,674,615 -------------- BANKS: NEW YORK CITY (1.2%) J.P. Morgan Chase & Co. ............. 228,360 8,300,886 -------------- BIOTECH RESEARCH & PRODUCTS (3.2%) Baxter International, Inc. .......... 347,700 18,647,151 *Biogen, Inc. ....................... 20,725 1,188,579 *Genentech, Inc. .................... 34,500 1,871,625 -------------- 21,707,355 -------------- CABLE TELEVISION SERVICES (2.1%) *Charter Communications, Inc. (Class A).......................... 461,550 7,583,266 *Liberty Media Corp. (Class A)....... 504,739 7,066,346 -------------- 14,649,612 -------------- COMMUNICATIONS & MEDIA (1.9%) *AOL Time Warner, Inc. .............. 284,864 9,144,134 *Gemstar-TV Guide International, Inc. .............................. 141,900 3,930,630 -------------- 13,074,764 -------------- COMMUNICATIONS TECHNOLOGY (2.5%) *Cisco Systems, Inc. ................ 503,100 9,111,141 Lucent Technologies, Inc. ........... 1,259,500 7,922,255 -------------- 17,033,396 -------------- COMPUTER SERVICES, SOFTWARE & SYSTEMS (5.2%) *Amdocs Ltd. ........................ 91,950 3,123,542 *BEA Systems, Inc. .................. 67,700 1,043,257 *Microsoft Corp. .................... 333,300 22,087,791 *Oracle Corp. ....................... 379,150 5,236,062 *PeopleSoft, Inc. ................... 68,200 2,741,640 *Siebel Systems, Inc. ............... 39,700 1,110,806 -------------- 35,343,098 --------------
SHARES VALUE - ----------------------------------------------------------------------- COMPUTER TECHNOLOGY (1.9%) International Business Machines Corp. ............................. 64,050 $ 7,747,488 *Sun Microsystems, Inc. ............. 427,550 5,275,967 -------------- 13,023,455 -------------- CONSUMER PRODUCTS (1.2%) Gillette Co. ........................ 251,850 8,411,790 -------------- DIVERSIFIED FINANCIAL SERVICES (8.1%) American Express Co. ................ 285,500 10,189,494 Citigroup, Inc. ..................... 604,023 30,491,081 Marsh & McLennan Companies, Inc. .... 36,750 3,948,788 Merrill Lynch & Co., Inc. ........... 122,800 6,400,336 Morgan Stanley Dean Witter & Co. .... 72,050 4,030,477 -------------- 55,060,176 -------------- DRUG & GROCERY STORE CHAINS (0.1%) Walgreen Co. ........................ 21,000 706,860 -------------- DRUGS & PHARMACEUTICALS (10.6%) Abbott Laboratories.................. 233,300 13,006,475 Allergan, Inc. ...................... 22,900 1,718,645 Bristol-Myers Squibb Co. ............ 406,071 20,709,621 *MedImmune, Inc. .................... 75,300 3,490,155 Pfizer, Inc. ........................ 594,237 23,680,344 Pharmacia Corp. ..................... 227,550 9,705,008 -------------- 72,310,248 -------------- ELECTRONICS: SEMICONDUCTORS (6.5%) *Agere Systems, Inc. (Class A)....... 438,000 2,492,220 *Celestica, Inc. .................... 148,250 5,987,818 *Flextronics International Ltd. ..... 203,550 4,883,165 Intel Corp. ......................... 618,050 19,437,673 *Micron Technology, Inc. ............ 79,900 2,476,900 *National Semiconductor Corp. ....... 200,850 6,184,172 Texas Instruments, Inc. ............. 101,850 2,851,800 -------------- 44,313,748 -------------- ELECTRONICS: TECHNOLOGY (0.9%) Raytheon Co. ........................ 195,750 6,356,001 -------------- ENTERTAINMENT (0.9%) *Viacom, Inc. (Class B).............. 136,000 6,004,400 -------------- FINANCE COMPANIES (0.7%) Capital One Financial Corp. ......... 86,000 4,639,700 -------------- FINANCIAL DATA PROCESSING SERVICES (0.9%) Automatic Data Processing, Inc. ..... 101,800 5,996,020 -------------- FINANCIAL MISCELLANEOUS (2.1%) Fannie Mae........................... 26,750 2,126,625 Freddie Mac.......................... 183,450 11,997,630 -------------- 14,124,255 --------------
See Accompanying Notes to Financial Statements 41 SCHEDULE OF INVESTMENTS - --------------------------------------------------------------------------------
COLUMBIA COMMON STOCK FUND (CONT.) DECEMBER 31, 2001 SHARES VALUE - ----------------------------------------------------------------------- FOODS (0.5%) Kraft Foods, Inc. (Class A).......... 109,325 $ 3,720,330 -------------- INSURANCE: MULTI-LINE (1.9%) American International Group, Inc. .............................. 161,837 12,849,858 -------------- INSURANCE: PROPERTY-CASUALTY (1.3%) *Berkshire Hathaway, Inc. (Class A)................................. 50 3,780,000 Chubb Corp. ......................... 72,300 4,988,700 -------------- 8,768,700 -------------- MACHINERY: CONSTRUCTION & HANDLING (0.5%) Caterpillar, Inc. ................... 63,850 3,336,162 -------------- MACHINERY: OIL WELL EQUIPMENT & SERVICES (0.4%) GlobalSantaFe Corp. ................. 96,975 2,765,727 -------------- MEDICAL & DENTAL SUPPLIES (1.1%) Beckman Coulter, Inc. ............... 94,350 4,179,705 *Zimmer Holdings, Inc. .............. 99,400 3,035,676 -------------- 7,215,381 -------------- MISCELLANEOUS EQUIPMENT (0.6%) Grainger, W.W., Inc. ................ 83,900 4,027,200 -------------- MULTI-SECTOR COMPANIES (10.5%) General Electric Co. ................ 642,450 25,749,396 Honeywell International, Inc. ....... 261,150 8,832,093 Minnesota Mining & Manufacturing Co. ............................... 96,950 11,460,460 *SPX Corp. .......................... 45,300 6,201,570 Tyco International Ltd. ............. 332,366 19,576,357 -------------- 71,819,876 -------------- OFFICE FURNITURE & BUSINESS EQUIPMENT (0.7%) *Lexmark International, Inc. ........ 82,450 4,864,550 -------------- OIL: CRUDE PRODUCERS (0.4%) Apache Corp. ........................ 61,270 3,056,148 -------------- OIL: INTEGRATED DOMESTIC (0.3%) Phillips Petroleum Co. .............. 31,600 1,904,216 -------------- OIL: INTEGRATED INTERNATIONAL (4.4%) ChevronTexaco Corp. ................. 80,700 7,231,527 Exxon Mobil Corp. ................... 466,764 18,343,825 Royal Dutch Petroleum Co. ........... 88,300 4,328,466 -------------- 29,903,818 -------------- PAPER (1.1%) International Paper Co. ............. 182,400 7,359,840 --------------
SHARES VALUE - ----------------------------------------------------------------------- PRODUCTION TECHNOLOGY EQUIPMENT (0.8%) Millipore Corp. ..................... 38,600 $ 2,343,020 *Novellus Systems, Inc. ............. 75,900 2,994,255 -------------- 5,337,275 -------------- RADIO & TELEVISION BROADCASTERS (0.7%) *Clear Channel Communications, Inc. .............................. 91,950 4,681,174 -------------- RAILROADS (1.0%) Burlington Northern Santa Fe Corp. ............................. 89,500 2,553,435 Union Pacific Corp. ................. 72,550 4,135,350 -------------- 6,688,785 -------------- RETAIL (6.3%) *Costco Wholesale Corp. ............. 118,650 5,265,687 Home Depot, Inc. .................... 71,500 3,647,215 *Kohl's Corp. ....................... 18,350 1,292,574 Nordstrom, Inc. ..................... 91,300 1,846,999 *Office Depot, Inc. ................. 147,700 2,738,358 Target Corp. ........................ 199,600 8,193,580 *Toys "R" Us, Inc. .................. 127,050 2,635,017 Wal-Mart Stores, Inc. ............... 301,100 17,328,305 -------------- 42,947,735 -------------- SERVICES: COMMERCIAL (1.4%) *Accenture Ltd. (Class A)............ 100,825 2,714,209 *Allied Waste Industries, Inc. ...... 164,700 2,315,682 Waste Management, Inc. .............. 135,400 4,320,614 -------------- 9,350,505 -------------- TIRES & RUBBER (0.8%) Goodyear Tire & Rubber Co., The...... 217,400 5,176,294 -------------- TOBACCO (0.9%) Philip Morris Companies, Inc. ....... 139,050 6,375,442 -------------- UTILITIES: CABLE TELEVISION & RADIO (1.1%) *Adelphia Communications Corp. (Class A) ................................ 173,500 5,409,730 *Comcast Corp. (Class A Special)..... 60,900 2,192,400 -------------- 7,602,130 -------------- UTILITIES: ELECTRICAL (0.3%) FirstEnergy Corp. ................... 69,400 2,427,612 -------------- UTILITIES: TELECOMMUNICATIONS (3.7%) AT&T Corp. .......................... 180,300 3,270,642 *AT&T Wireless Services, Inc. ....... 321,557 4,620,774 BellSouth Corp. ..................... 116,150 4,431,123 SBC Communications, Inc. ............ 88,500 3,466,545 Sprint Corp. (Fon Group)............. 56,950 1,143,556
See Accompanying Notes to Financial Statements 42 SCHEDULE OF INVESTMENTS - --------------------------------------------------------------------------------
SHARES OR PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- Verizon Communications, Inc. ........ 134,000 $ 6,359,640 *WorldCom, Inc. ..................... 115,600 1,627,648 -------------- 24,919,928 -------------- Total Common Stocks (Cost $557,318,765).......................... 649,689,577 -------------- REPURCHASE AGREEMENT (4.5%) J.P. Morgan Securities, Inc. 1.78% Dated 12/31/2001, due 01/02/2002 in the amount of $30,447,819. Collateralized 102% by U.S. Treasury Strips due 02/15/2002 to 02/15/2014 (Cost $30,446,330)................. $30,446,330 30,446,330 -------------- TOTAL INVESTMENTS (99.8%) (Cost $587,765,095).......................... 680,135,907 OTHER ASSETS LESS LIABILITIES (0.2%).... 1,261,272 -------------- NET ASSETS (100.0%)..................... $ 681,397,179 ============== * Non-income producing
COLUMBIA GROWTH FUND DECEMBER 31, 2001 SHARES VALUE - ----------------------------------------------------------------------- COMMON STOCKS (95.9%) BANKS: NEW YORK CITY (0.5%) Bank of New York Company, Inc., The.. 166,500 $ 6,793,200 -------------- BIOTECH RESEARCH & PRODUCTS (3.8%) Baxter International, Inc. .......... 598,100 32,076,103 *Biogen, Inc. ....................... 61,350 3,518,423 *Cephalon, Inc. ..................... 107,900 8,155,621 *Genentech, Inc. .................... 125,700 6,819,225 -------------- 50,569,372 -------------- BUILDING MATERIALS (0.5%) Vulcan Materials Co. ................ 141,500 6,783,510 -------------- CABLE TELEVISION SERVICES (1.2%) *Liberty Media Corp. (Class A)....... 1,114,375 15,601,250 -------------- COMMUNICATIONS & MEDIA (2.3%) *AOL Time Warner, Inc. .............. 672,995 21,603,139 *Gemstar-TV Guide International, Inc. .............................. 334,300 9,260,110 -------------- 30,863,249 --------------
SHARES VALUE - ----------------------------------------------------------------------- COMMUNICATIONS TECHNOLOGY (4.1%) *Cisco Systems, Inc. ................ 1,611,900 $ 29,191,509 *Lucent Technologies, Inc. .......... 2,725,000 17,140,250 *QUALCOMM, Inc. ..................... 168,600 8,514,300 -------------- 54,846,059 -------------- COMPUTER SERVICES, SOFTWARE & SYSTEMS (7.9%) *Amdocs Ltd. ........................ 298,700 10,146,839 *Microsoft Corp. .................... 1,000,300 66,289,881 *Oracle Corp. ....................... 1,083,800 14,967,278 *Siebel Systems, Inc. ............... 250,200 7,000,596 *VERITAS Software Corp. ............. 136,800 6,131,376 -------------- 104,535,970 -------------- COMPUTER TECHNOLOGY (4.8%) *Dell Computer Corp. ................ 604,900 16,441,182 International Business Machines Corp. ............................. 270,150 32,677,344 *Sun Microsystems, Inc. ............. 1,141,900 14,091,046 -------------- 63,209,572 -------------- CONSUMER ELECTRONICS (1.2%) *Electronic Arts, Inc. .............. 265,900 15,940,705 -------------- CONSUMER PRODUCTS (1.5%) Gillette Co. ........................ 595,400 19,886,360 -------------- DIVERSIFIED FINANCIAL SERVICES (2.8%) Citigroup, Inc. ..................... 477,500 24,104,200 Goldman Sachs Group, Inc. ........... 140,800 13,059,200 -------------- 37,163,400 -------------- DRUG & GROCERY STORE CHAINS (1.0%) *Kroger Co. ......................... 225,500 4,706,185 Walgreen Co. ........................ 262,400 8,832,384 -------------- 13,538,569 -------------- DRUGS & PHARMACEUTICALS (15.3%) Abbott Laboratories.................. 459,700 25,628,275 Allergan, Inc. ...................... 79,700 5,981,485 Bristol-Myers Squibb Co. ............ 769,345 39,236,595 Cardinal Health, Inc. ............... 132,600 8,573,916 Johnson & Johnson.................... 214,700 12,688,770 Lilly, Eli & Co. .................... 196,000 15,393,840 *MedImmune, Inc. .................... 170,200 7,888,770 Merck & Co., Inc. ................... 96,400 5,668,320 Pfizer, Inc. ........................ 1,473,575 58,721,964 Pharmacia Corp. ..................... 533,850 22,768,702 -------------- 202,550,637 --------------
See Accompanying Notes to Financial Statements 43 SCHEDULE OF INVESTMENTS - --------------------------------------------------------------------------------
COLUMBIA GROWTH FUND (CONT.) DECEMBER 31, 2001 SHARES VALUE - ----------------------------------------------------------------------- Hey ELECTRONICS: SEMICONDUCTORS (9.9%) *Agere Systems, Inc. (Class A)....... 2,038,600 $ 11,599,634 *Altera Corp. ....................... 109,000 2,312,980 *Applied Mirco Circuits Corp. ....... 233,800 2,646,616 *Celestica, Inc. .................... 408,400 16,495,276 *Flextronics International Ltd. ..... 1,003,000 24,061,970 Intel Corp. ......................... 1,580,450 49,705,152 *Micron Technology, Inc. ............ 124,000 3,844,000 *National Semiconductor Corp. ....... 383,550 11,809,505 Texas Instruments, Inc. ............. 306,400 8,579,200 -------------- 131,054,333 -------------- ELECTRONICS: TECHNOLOGY (0.3%) *Solectron Corp. .................... 287,300 3,240,744 -------------- ENTERTAINMENT (1.5%) *Viacom, Inc. (Class B).............. 441,300 19,483,395 -------------- FINANCE COMPANIES (1.2%) Capital One Financial Corp. ......... 305,200 16,465,540 -------------- FINANCIAL DATA PROCESSING SERVICES (0.6%) *Concord EFS, Inc. .................. 255,600 8,378,568 -------------- FINANCIAL MISCELLANEOUS (1.5%) Fannie Mae........................... 142,000 11,289,000 Freddie Mac.......................... 128,700 8,416,980 -------------- 19,705,980 -------------- FOODS (1.1%) Kraft Foods, Inc. (Class A).......... 247,500 8,422,425 SYSCO Corp. ......................... 223,300 5,854,926 -------------- 14,277,351 -------------- HEALTH CARE SERVICES (0.9%) McKesson Corp. ...................... 316,100 11,822,140 -------------- IDENTIFICATION CONTROL (0.7%) *Waters Corp. ....................... 238,900 9,257,375 -------------- INSURANCE: MULTI-LINE (2.2%) American International Group, Inc. .............................. 371,994 29,536,324 -------------- MACHINERY: OIL WELL EQUIPMENT & SERVICES (1.5%) *BJ Services Co. .................... 275,700 8,946,465 *Nabors Industries, Inc. ............ 140,150 4,811,350 *Noble Drilling Corp. ............... 192,250 6,544,190 -------------- 20,302,005 -------------- MEDICAL & DENTAL SUPPLIES (0.3%) *Guidant Corp. ...................... 77,000 3,834,600 --------------
SHARES VALUE - ----------------------------------------------------------------------- MULTI-SECTOR COMPANIES (10.2%) General Electric Co. ................ 1,504,300 $ 60,292,344 Minnesota Mining & Manufacturing Co. ............................... 109,100 12,896,711 Tyco International Ltd. ............. 1,056,400 62,221,960 -------------- 135,411,015 -------------- OFFICE FURNITURE & BUSINESS EQUIPMENT (0.7%) *Lexmark International, Inc. ........ 154,400 9,109,600 -------------- OIL: CRUDE PRODUCERS (0.5%) Anadarko Petroleum Corp. ............ 113,200 6,435,420 -------------- PRODUCTION TECHNOLOGY EQUIPMENT (1.6%) *Applied Materials, Inc. ............ 245,300 9,836,530 *KLA-Tencor Corp. ................... 80,100 3,969,756 *Novellus Systems, Inc. ............. 190,200 7,503,390 -------------- 21,309,676 -------------- RADIO & TELEVISION BROADCASTERS (1.8%) *Clear Channel Communications, Inc. .............................. 300,631 15,305,124 *Univision Communications, Inc. (Class A).......................... 206,700 8,363,082 -------------- 23,668,206 -------------- RETAIL (8.2%) *Costco Wholesale Corp. ............. 301,250 13,369,475 Home Depot, Inc. .................... 527,950 26,930,730 *Kohl's Corp. ....................... 72,519 5,108,238 Lowe's Companies, Inc. .............. 380,400 17,654,364 Target Corp. ........................ 237,800 9,761,690 Wal-Mart Stores, Inc. ............... 623,700 35,893,935 -------------- 108,718,432 -------------- SERVICES: COMMERCIAL (1.6%) *Accenture Ltd. (Class A)............ 509,675 13,720,451 *Cendant Corp. ...................... 395,000 7,745,950 -------------- 21,466,401 -------------- TELECOMMUNICATION EQUIPMENT (0.3%) Nokia Corp. ADR...................... 152,800 3,748,184 -------------- TOBACCO (0.7%) Philip Morris Companies, Inc. ....... 200,000 9,170,000 -------------- TOYS (0.4%) Hasbro, Inc. ........................ 326,000 5,290,980 -------------- UTILITIES: CABLE TELEVISION & RADIO (1.3%) *Adelphia Communications Corp. (Class A)................................. 343,600 10,713,448 *Comcast Corp. (Class A Special)..... 197,300 7,102,800 -------------- 17,816,248 -------------- Total Common Stocks (Cost $1,032,497,800)........................ 1,271,784,370 --------------
See Accompanying Notes to Financial Statements 44 SCHEDULE OF INVESTMENTS - --------------------------------------------------------------------------------
SHARES OR PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- WARRANT (0.2%) PRODUCTION TECHNOLOGY EQUIPMENT Merrill-CW02 Taiwan Semiconductor 08/23/2002 (Cost $1,833,900)....... 1,000,000 $ 2,504,000 -------------- REPURCHASE AGREEMENT (4.6%) J.P. Morgan Securities, Inc. 1.78% Dated 12/31/2001, due 01/02/2002 in the amount of $61,030,786. Collateralized 102% by U.S. Treasury Strips due 02/15/2002 to 02/15/2014 (Cost $61,027,802)................. $61,027,802 61,027,802 -------------- TOTAL INVESTMENTS (100.7%) (Cost $1,095,359,502)........................ 1,335,316,172 OTHER ASSETS LESS LIABILITIES (-0.7%)... (9,471,775) -------------- NET ASSETS (100.0%)..................... $1,325,844,397 ============== * Non-income producing
COLUMBIA INTERNATIONAL STOCK FUND DECEMBER 31, 2001 SHARES VALUE - ----------------------------------------------------------------------- COMMON STOCKS (97.0%) AUSTRALIA (3.1%) Foster's Group Ltd. (Beverages)..... 227,600 $ 566,218 Origin Energy Ltd. (Oil & Gas)...... 602,500 870,033 Perpetual Trustees Australia Ltd. (Diversified Financials).......... 27,250 612,708 Qantas Airways Ltd. (Airlines)...... 360,400 678,903 Suncorp-Metway Ltd. (Diversified Financials)....................... 107,200 769,889 Wesfarmers Ltd. (Industrial Conglomerates).................... 42,750 678,162 -------------- 4,175,913 -------------- CANADA (2.1%) Alcan, Inc. (Metals & Mining)....... 14,700 526,296 Bombardier, Inc. (Class B) (Aerospace & Defense)............. 100,300 1,036,767 CP Holders (Diversified Financials)....................... 23,800 933,356 Finning International, Inc. (Machinery)....................... 32,600 408,455 -------------- 2,904,874 -------------- CHINA (0.3%) *Aluminum Corporation of China Ltd., ADR (Metals & Mining)............. 19,500 340,860 --------------
SHARES VALUE - ----------------------------------------------------------------------- DENMARK (1.0%) Novo Nordisk AS (Class B) (Pharmaceuticals)................. 23,000 $ 940,613 Vestas Wind Systems AS (Electrical Equipment)........................ 16,600 453,247 -------------- 1,393,860 -------------- FINLAND (2.5%) Nokia Corp., ADR (Communications Equipment)........................ 64,900 1,591,997 Stora Enso Oyj (Paper & Forest Products)......................... 73,400 939,786 UPM-Kymmene Corp. (Paper & Forest Products)......................... 25,100 832,480 -------------- 3,364,263 -------------- FRANCE (9.4%) Aventis SA (Pharmaceuticals)........ 14,800 1,050,912 BNP Paribas (Banks)................. 20,600 1,843,347 Carrefour SA (Food & Drug Retailing)........................ 13,400 696,773 Lafarge SA (Construction Materials)........................ 15,200 1,419,688 *Orange SA (Wireless Telecommunication Services)....... 105,700 958,069 Pernod-Ricard SA (Beverages)........ 5,700 441,538 Sodexho Alliance SA (Hotels, Restaurants & Leisure)............ 18,700 799,369 STMicroelectronics NV (Semiconductor Equipment & Products)............. 29,000 918,430 *Thomson Multimedia (Household Durables)......................... 21,400 657,365 Total Fina Elf SA (Oil & Gas)....... 13,629 1,946,445 Vinci SA (Construction & Engineering)...................... 14,900 873,606 Vivendi Universal SA (Media)........ 13,400 733,760 *Wavecom SA (Communications Equipment)........................ 12,300 462,159 -------------- 12,801,461 -------------- GERMANY (7.0%) Allianz AG (Insurance).............. 5,550 1,314,463 Altana AG (Pharmaceuticals)......... 16,500 822,708 Bayer AG (Chemicals)................ 19,000 605,634 Bayerische Motoren Werke (BMW) AG (Automobiles)..................... 21,700 756,424 Beiersdorf AG (Personal Products)... 5,200 590,320 DaimlerChrysler AG (Automobiles).... 16,700 695,889
See Accompanying Notes to Financial Statements 45 SCHEDULE OF INVESTMENTS - --------------------------------------------------------------------------------
COLUMBIA INTERNATIONAL STOCK FUND (CONT.) DECEMBER 31, 2001 SHARES VALUE - ----------------------------------------------------------------------- Deutsche Bank AG (Banks)............ 10,650 $ 752,912 Infineon Technologies AG (Semiconductor Equipment & Products)......................... 43,200 882,755 Muenchener Rueckversicherungs- Gesellschaft AG (Insurance)....... 5,550 1,506,938 Schering AG (Pharmaceuticals)....... 13,050 692,517 Siemens AG (Industrial Conglomerates).................... 12,525 829,149 -------------- 9,449,709 -------------- HONG KONG (1.0%) Tracker Fund of Hong Kong (Diversified Financials).......... 950,000 1,394,936 -------------- IRELAND (1.2%) CRH plc (Construction Materials).... 45,300 796,598 *Elan Corp. plc, ADR (Pharmaceuticals)................. 18,700 842,622 -------------- 1,639,220 -------------- ITALY (5.1%) Assicurazioni Generali S.p.A (Insurance)....................... 29,500 819,503 Autostrade S.p.A (Transportation Infrastructure)................... 115,000 798,668 Eni S.p.A (Oil & Gas)............... 97,450 1,221,682 Luxottica Group S.p.A, ADR (Health Care Equipment & Supplies)........ 47,400 781,152 Mediaset S.p.A (Media).............. 107,500 785,824 Riunione Adriatica di Sicurta S.p.A (Insurance)....................... 96,100 1,132,028 Unicredito Italiano S.p.A (Banks)... 329,500 1,323,140 -------------- 6,861,997 -------------- JAPAN (17.6%) AEON Co., Ltd. (Multiline Retail)... 73,000 1,648,711 Bellsystem24, Inc. (Commercial Services & Supplies).............. 1,650 616,893 Canon, Inc. (Office Electronics).... 53,000 1,823,821 Fuji Photo Film Co., Ltd. (Leisure Equipment & Products)............. 19,000 678,468 Hisamitsu Pharmaceutical Co., Inc. (Pharmaceuticals)................. 39,000 535,633 Hitachi Ltd. (Electronic Equipment & Instruments)...................... 80,000 585,991 Honda Motor Co., Ltd. (Automobiles)..................... 24,000 957,729
SHARES VALUE - ----------------------------------------------------------------------- Isetan Co., Ltd. (Multiline Retail)........................... 69,000 $ 707,058 Ito-Yokado Co., Ltd. (Multiline Retail)........................... 29,000 1,309,935 Japan OTC Equity Fund, Inc. (Diversified Financials).......... 13,600 76,296 Kappa Create Co., Ltd. (Hotels, Restaurants & Leisure)............ 14,200 622,997 Keyence Corp. (Electronic Equipment & Instruments).................... 7,500 1,246,948 Komatsu Ltd. (Machinery)............ 325,000 1,163,017 Moshi Moshi Hotline, Inc. (Commercial Services & Supplies)......................... 3,300 261,865 NEC Corp. (Computers & Peripherals)...................... 153,000 1,560,820 Net One Systems Co., Ltd. (IT Consulting & Services)............ 44 644,590 Nintendo Co., Ltd. (Household Durables)......................... 4,000 700,443 Nippon Kanzai Co., Ltd. (Commercial Services & Supplies).............. 25,000 341,447 Nissin Healthcare Food Service Co., Ltd. (Hotels, Restaurants & Leisure).......................... 10,000 350,984 NTT DOCOMO, Inc. (Wireless Telecommunication Services)....... 77 904,777 Olympus Optical Co., Ltd. (Health Care Equipment & Supplies)........ 62,000 891,729 Pioneer Corp. (Household Durables).. 25,000 545,552 Ricoh Co., Ltd. (Office Electronics)...................... 37,000 688,845 Rohm Co., Ltd. (Semiconductor Equipment & Products)............. 7,000 908,515 Saizeriya Co., Ltd. (Hotels, Restaurants & Leisure)............ 27,300 1,037,342 Seven-Eleven Japan Co., Ltd. (Food & Drug Retailing)................... 54,000 1,969,480 Shimamura Co., Ltd. (Specialty Retail) .......................... 18,000 1,057,531 -------------- 23,837,417 -------------- KOREA (4.7%) *Good Morning Securities Co. (Diversified Financials).......... 172,000 754,260 Humax Co., Ltd. (Household Durables)......................... 27,000 652,646 Hyundai Motor Co., Ltd. (Automobiles)..................... 35,000 716,787 Pacific Corp. (Personal Products)... 16,500 1,658,165 Samsung Electronics (Semiconductor Equipment & Products)............. 6,500 1,380,662
See Accompanying Notes to Financial Statements 46 SCHEDULE OF INVESTMENTS - --------------------------------------------------------------------------------
SHARES VALUE - ----------------------------------------------------------------------- *Shinhan Financial Group Ltd. (Banks)........................... 92,500 $ 1,235,915 -------------- 6,398,435 -------------- NETHERLANDS (5.5%) ABN Amro Holding NV (Banks)......... 45,500 732,865 *ASML Holding NV (Semiconductor Equipment & Products)............. 38,900 663,245 ING Groep NV (Diversified Financials) ...................... 32,700 833,863 Koninklijke Philips Electronics NV (Household Durables).............. 40,900 1,215,580 Royal Dutch Petroleum Co. (Oil & Gas).............................. 30,900 1,565,469 TPG NV (Air Freight & Couriers)..... 59,800 1,293,842 Unilever NV (Certificates) (Food Products)......................... 19,700 1,155,037 -------------- 7,459,901 -------------- NORWAY (0.6%) Norske Skogindustrier ASA (Paper & Forest Products).................. 40,300 757,090 -------------- SPAIN (1.7%) Grupo Dragados SA (Construction & Engineering)...................... 87,900 1,176,310 Grupo Ferrovial SA (Construction & Engineering)...................... 60,400 1,058,904 -------------- 2,235,214 -------------- SWEDEN (0.7%) Svenska Cellulosa AB (Class B) (Paper & Forest Products)......... 35,700 976,759 -------------- SWITZERLAND (6.7%) *Converium Holding AG (Insurance)... 20,000 972,119 Credit Suisse Group (Banks)......... 22,800 972,264 Givaudan SA (Chemicals)............. 3,500 1,066,681 *Logitech International SA (Computers & Peripherals)......... 30,100 1,101,359 Nestle SA (Food Products)........... 7,650 1,631,100 Novartis AG (Pharmaceuticals)....... 37,600 1,358,799 Synthes-Stratec, Inc. (Health Care Equipment & Supplies)............. 1,300 905,143 UBS AG (Banks)...................... 22,200 1,120,503 -------------- 9,127,968 -------------- TAIWAN (0.6%) *ASE Test Ltd. (Semiconductor Equipment & Products)............. 57,800 805,154 -------------- UNITED KINGDOM (25.6%) Abbey National plc (Banks).......... 58,100 828,683
SHARES VALUE - ----------------------------------------------------------------------- *Amdocs Ltd. (Software)............. 21,100 $ 716,767 AMEC plc (Construction & Engineering)...................... 133,300 766,326 Amvescap plc (Diversified Financials)....................... 47,700 687,984 BAE Systems plc (Aerospace & Defense).......................... 223,200 1,005,405 Barclays plc (Banks)................ 60,739 2,011,108 Barratt Developments plc (Household Durables)......................... 141,000 878,826 BP plc, ADR (Oil & Gas)............. 40,800 1,897,608 Capita Group plc (Commercial Services & Supplies).............. 132,200 943,269 Centrica plc (Gas Utilities)........ 445,800 1,440,388 Compass Group plc (Hotels, Restaurants & Leisure)............ 134,235 1,006,142 Diageo plc (Beverages).............. 96,100 1,097,942 *easyJet plc (Airlines)............. 217,827 1,488,448 GlaxoSmithKline plc (Pharmaceuticals)................. 85,626 2,147,224 HSBC Holdings plc (Banks)........... 83,300 977,162 Legal & General Group plc (Insurance)....................... 496,700 1,149,417 National Grid Group plc (Electric Utilities)........................ 144,100 897,623 Next plc (Multiline Retail)......... 57,000 742,479 *Powderject Pharmaceuticals (Biotechnology)................... 111,500 918,497 Reckitt Benckiser plc (Household Products)......................... 48,500 705,875 Rio Tinto plc (Metals & Mining)..... 52,800 1,011,291 Royal Bank of Scotland Group plc (Banks)........................... 61,617 1,499,420 Securicor plc (Air Freight & Couriers)......................... 418,000 714,826 Shell Transport & Trading Co. plc (Oil & Gas)....................... 141,500 972,042 *Shire Pharmaceuticals Group plc (Pharmaceuticals)................. 99,200 1,241,642 Smith & Nephew plc (Health Care Equipment & Supplies)............. 153,900 929,551 St. James's Place Capital plc (Insurance)....................... 133,000 677,495 Tesco plc (Food & Drug Retailing)... 185,600 672,611 Vodafone Group plc (Wireless Telecommunication Services)....... 1,262,500 3,302,833 William Morrison Supermarkets plc (Food & Drug Retailing)........... 225,300 661,548
See Accompanying Notes to Financial Statements 47 SCHEDULE OF INVESTMENTS - --------------------------------------------------------------------------------
COLUMBIA INTERNATIONAL STOCK FUND (CONT.) DECEMBER 31, 2001 SHARES OR PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- WPP Group plc (Media)............... 67,600 $ 747,733 -------------- 34,738,165 -------------- UNITED STATES (0.6%) *ResMed, Inc. (Health Care Equipment & Supplies)....................... 14,900 803,408 -------------- Total Common Stocks (Cost $129,313,577)................... 131,466,604 -------------- PREFERRED STOCK (0.7%) Germany Wella AG (Personal Products) (Cost $920,408)................... 18,850 971,771 -------------- REPURCHASE AGREEMENT (3.7%) J.P. Morgan Securities, Inc. 1.78% Dated 12/31/2001, due 01/02/2002 in the amount of $5,020,776. Collateralized 102% by U.S. Treasury Strips due 02/15/2002 to 02/15/2014 (Cost $5,020,531)................. $ 5,020,531 5,020,531 -------------- TOTAL INVESTMENTS (101.4%) (Cost $135,254,516)................... 137,458,906 OTHER ASSETS LESS LIABILITIES (-1.4%)............................... (1,833,061) -------------- NET ASSETS (100%)...................... $ 135,625,845 ============== * Non-income producing
% OF NET SECTOR DIVERSIFICATION ASSETS VALUE - ---------------------------------------------------------------------- Financials............................. 19.9% $ 26,932,574 Consumer Discretionary................. 14.8 20,005,573 Industrials............................ 12.2 16,587,510 Information Technology................. 11.8 15,982,059 Health Care............................ 11.0 14,862,149 Consumer Staples....................... 9.4 12,818,379 Materials.............................. 6.8 9,273,163 Energy................................. 6.3 8,473,279 Telecommunication Services............. 3.8 5,165,678 Utilities.............................. 1.7 2,338,011 ------ ------------ TOTAL COMMON/PREFERRED STOCKS........... 97.7 132,438,375 REPURCHASE AGREEMENT.................... 3.7 5,020,531 ------ ------------ TOTAL INVESTMENTS....................... 101.4 137,458,906 OTHER ASSETS LESS LIABILITIES........... (1.4) (1,833,061) ------ ------------ NET ASSETS.............................. 100.0% $135,625,845 ====== ============
COLUMBIA SPECIAL FUND DECEMBER 31, 2001 SHARES VALUE - ---------------------------------------------------------------------- COMMON STOCKS (96.3%) ADVERTISING AGENCIES (1.0%) *Valassis Communications, Inc. ...... 226,500 $ 8,067,930 ------------ AUTO TRUCKS & PARTS (1.2%) *Gentex Corp. ....................... 339,900 9,085,527 ------------ BANKS (0.8%) M & T Bank Corp. .................... 82,980 6,045,093 ------------ BIOTECH RESEARCH & PRODUCTS (6.0%) *Abgenix, Inc. ...................... 161,900 5,446,316 *Cephalon, Inc. ..................... 112,000 8,465,520 *Elan Corp. plc ADR ................. 90,700 4,086,942 *Enzon, Inc. ........................ 124,668 7,016,315 *Genentech, Inc. .................... 209,030 11,339,877 *Genzyme Corp. (General Division) ... 117,400 7,027,564 *Millennium Pharmaceuticals, Inc. ... 159,800 3,916,698 ------------ 47,299,232 ------------ BUILDING MATERIALS (1.9%) Martin Marietta Materials, Inc. ..... 323,200 15,061,120 ------------ CASINOS & GAMBLING (0.6%) *Harrah's Entertainment, Inc. ....... 124,700 4,615,147 ------------ COMMUNICATIONS & MEDIA (1.9%) *Gemstar-TV Guide International, Inc. .............................. 551,400 15,273,780 ------------ COMMUNICATIONS TECHNOLOGY (0.5%) *Networks Associates, Inc. .......... 168,100 4,345,385 ------------
See Accompanying Notes to Financial Statements 48 SCHEDULE OF INVESTMENTS - --------------------------------------------------------------------------------
SHARES VALUE - ---------------------------------------------------------------------- COMPUTER SERVICES, SOFTWARE & SYSTEMS (7.2%) *Cadence Design Systems, Inc. ....... 254,900 $ 5,587,408 *Check Point Software Technologies Ltd. .............................. 113,390 4,523,127 *Intuit, Inc. ....................... 384,200 16,428,392 *PeopleSoft, Inc. ................... 39,000 1,567,800 *Peregrine Systems, Inc. ............ 238,680 3,539,624 *Rational Software Corp. ............ 94,800 1,848,600 *Siebel Systems, Inc. ............... 79,650 2,228,607 *SmartForce plc ADR ................. 194,580 4,815,855 *VERITAS Software Corp. ............. 178,400 7,995,888 *Wind River Systems, Inc. ........... 452,700 8,107,857 ------------ 56,643,158 ------------ COMPUTER TECHNOLOGY (2.8%) *Emulex Corp. ....................... 97,700 3,860,127 *Network Appliance, Inc. ............ 335,800 7,343,946 *Synopsys, Inc. ..................... 187,200 11,057,904 ------------ 22,261,977 ------------ CONSUMER ELECTRONICS (0.5%) *Electronic Arts, Inc. .............. 62,600 3,752,870 ------------ DRUGS & PHARMACEUTICALS (10.1%) *ANDRX Group ........................ 241,300 16,989,933 *Barr Laboratories, Inc. ............ 98,100 7,785,216 *Biovail Corp. ...................... 260,900 14,675,625 *Gilead Sciences, Inc. .............. 86,400 5,678,208 *MedImmune, Inc. .................... 354,400 16,426,440 *Sepracor, Inc. ..................... 312,500 17,831,250 ------------ 79,386,672 ------------ EDUCATION SERVICES (0.9%) *Apollo Group, Inc. (Class A) ....... 121,350 5,461,963 *DeVry, Inc. ........................ 54,100 1,539,145 ------------ 7,001,108 ------------ ELECTRONICS (0.3%) *Sanmina-SCI Corp. .................. 111,000 2,208,900 ------------ ELECTRONICS: INSTRUMENTS, GAUGES & METERS (0.9%) *Tektronix, Inc. .................... 260,900 6,726,002 ------------ ELECTRONICS: SEMICONDUCTORS (3.1%) *Altera Corp. ....................... 339,200 7,197,824 *Flextronics International Ltd. ..... 244,040 5,854,520 *LSI Logic Corp. .................... 461,500 7,282,470 *National Semiconductor Corp. ....... 127,200 3,916,488 ------------ 24,251,302 ------------ ELECTRONICS: TECHNOLOGY (0.6%) *Solectron Corp. .................... 390,980 4,410,254 ------------
SHARES VALUE - ---------------------------------------------------------------------- FINANCIAL DATA PROCESSING SERVICES (2.5%) *DST Systems, Inc. .................. 121,590 $ 6,061,262 Henry, Jack & Associates, Inc. ...... 161,100 3,518,424 *SunGard Data Systems, Inc. ......... 347,150 10,043,050 ------------ 19,622,736 ------------ FINANCIAL INFORMATION SERVICES (1.0%) Moody's Corp. ....................... 195,600 7,796,616 ------------ HEALTH CARE FACILITIES (7.6%) HCA, Inc. ........................... 156,500 6,031,510 *Health Management Associates, Inc. (Class A) ......................... 478,700 8,808,080 *HEALTHSOUTH Corp. .................. 1,079,000 15,990,780 *Laboratory Corporation of America Holdings .......................... 180,820 14,619,297 *Tenet Healthcare Corp. ............. 250,300 14,697,616 ------------ 60,147,283 ------------ HEALTH CARE MANAGEMENT SERVICES (6.2%) *Caremark Rx, Inc. .................. 1,055,000 17,207,050 *Community Health Systems, Inc. ..... 236,500 6,030,750 UnitedHealth Group, Inc. ............ 83,700 5,923,449 *WellPoint Health Networks, Inc. .... 168,400 19,677,540 ------------ 48,838,789 ------------ HEALTH CARE SERVICES (1.9%) *Express Scripts, Inc. .............. 168,800 7,893,088 McKesson Corp. ...................... 193,300 7,229,420 ------------ 15,122,508 ------------ IDENTIFICATION CONTROL (1.6%) *Waters Corp. ....................... 317,100 12,287,625 ------------ INSURANCE: MULTI-LINE (0.7%) Gallagher, Arthur J. & Co. .......... 150,300 5,183,847 ------------ MACHINERY: OIL WELL EQUIPMENT & SERVICES (0.7%) *Hanover Compressor Co. ............. 86,400 2,182,464 *Nabors Industries, Inc. ............ 87,100 2,990,143 ------------ 5,172,607 ------------ MEDICAL & DENTAL SUPPLIES (4.0%) Biomet, Inc. ........................ 381,500 11,788,350 *Boston Scientific Corp. ............ 668,700 16,129,044 *Zimmer Holdings, Inc. .............. 123,700 3,777,798 ------------ 31,695,192 ------------ MISCELLANEOUS EQUIPMENT (0.7%) Grainger, W.W., Inc. ................ 119,960 5,758,080 ------------ OFFSHORE DRILLING (0.3%) Transocean Sedco Forex, Inc. ........ 69,250 2,342,035 ------------
See Accompanying Notes to Financial Statements 49 SCHEDULE OF INVESTMENTS - --------------------------------------------------------------------------------
COLUMBIA SPECIAL FUND (CONT.) DECEMBER 31, 2001 SHARES VALUE - ---------------------------------------------------------------------- PRODUCTION TECHNOLOGY EQUIPMENT (2.8%) *ASML Holding NV .................... 335,500 $ 5,720,275 *Chartered Semiconductor Manufacturing Ltd. ADR ............ 199,960 5,286,742 Millipore Corp. ..................... 40,200 2,440,140 *Novellus Systems, Inc. ............. 63,400 2,501,130 *United Microelectronics Corp. ADR ............................... 634,490 6,091,104 ------------ 22,039,391 ------------ PUBLISHING: NEWSPAPERS (1.2%) New York Times Co. (Class A) ........ 226,700 9,804,775 ------------ RADIO & TELEVISION BROADCASTERS (3.0%) *Cox Radio, Inc. (Class A) .......... 166,300 4,237,324 *Hispanic Broadcasting Corp. ........ 323,200 8,241,600 *Univision Communications, Inc. (Class A) ......................... 278,900 11,284,294 ------------ 23,763,218 ------------ RAILROADS (0.8%) CSX Corp. ........................... 171,300 6,004,065 ------------ RESTAURANTS (5.0%) *Brinker International, Inc. ........ 435,190 12,951,254 *Outback Steakhouse, Inc. ........... 375,600 12,864,300 *TRICON Global Restaurants, Inc. .... 270,900 13,328,280 ------------ 39,143,834 ------------ RETAIL (6.6%) *Abercrombie & Fitch Co. (Class A) ................................ 216,300 5,738,439 *Costco Wholesale Corp. ............. 192,000 8,520,960 *Dollar Tree Stores, Inc. ........... 361,060 11,160,365 Intimate Brands, Inc. ............... 357,700 5,315,422 Limited, Inc. ....................... 570,360 8,395,699 Talbots, Inc., The .................. 175,000 6,343,750 *Toys "R" Us, Inc. .................. 295,420 6,127,011 ------------ 51,601,646 ------------ SERVICES: COMMERCIAL (4.7%) *Cendant Corp. ...................... 583,800 11,448,318 *ChoicePoint, Inc. .................. 167,930 8,512,372 *Republic Services, Inc. ............ 218,470 4,362,846 *Robert Half International, Inc. .... 197,100 5,262,570 *TMP Worldwide, Inc. ................ 91,530 3,926,637 *Weight Watchers International, Inc. .............................. 97,700 3,304,214 ------------ 36,816,957 ------------ SOAPS & HOUSEHOLD CHEMICALS (0.7%) Dial Corp., The ..................... 345,330 5,922,410 ------------
SHARES OR PRINCIPAL AMOUNT VALUE - ---------------------------------------------------------------------- TELECOMMUNICATION EQUIPMENT (1.4%) *Polycom, Inc. ...................... 328,400 $ 11,188,588 ------------ TOYS (0.9%) Mattel, Inc. ........................ 393,690 6,771,468 ------------ UTILITIES: CABLE TELEVISION & RADIO (1.2%) *Adelphia Communications Corp. (Class A) ................................ 308,400 9,615,912 ------------ UTILITIES: ELECTRICAL (0.5%) *AES Corp. .......................... 255,800 4,182,330 ------------ Total Common Stocks (Cost $638,879,604).................... 757,257,369 ------------ WARRANT (1.9%) PRODUCTION TECHNOLOGY EQUIPMENT Merrill-CW02 Taiwan Semiconductor 08/23/2002 (Cost $11,493,200)................. 6,000,000 15,024,000 ------------ REPURCHASE AGREEMENT (0.7%) J.P. Morgan Securities, Inc. 1.78% Dated 12/31/2001, due 01/02/2002 in the amount of $5,325,322. Collateralized 102% by U.S. Treasury Strips due 02/15/2002 to 02/15/2014 (Cost $5,325,062)....... $5,325,062 5,325,062 ------------ TOTAL INVESTMENTS (98.9%) (Cost $655,697,866).................... 777,606,431 OTHER ASSETS LESS LIABILITIES (1.1%).... 8,464,803 ------------ NET ASSETS (100.0%)..................... $786,071,234 ============ * Non-income producing
COLUMBIA SMALL CAP FUND DECEMBER 31, 2001 SHARES VALUE - ----------------------------------------------------------------------- COMMON STOCKS (94.2%) ADVERTISING AGENCIES (1.7%) *Lamar Advertising Co. ............. 251,412 $ 10,644,784 -------------- AEROSPACE (0.2%) *United Defense Industries, Inc. ... 55,900 1,176,695 -------------- AIR TRANSPORT (0.5%) *Atlantic Coast Airlines Holdings, Inc. ............................. 131,464 3,061,797 -------------- AUTO PARTS: ORIGINAL EQUIPMENT (0.7%) Autoliv, Inc. ...................... 206,240 4,188,734 --------------
See Accompanying Notes to Financial Statements 50 SCHEDULE OF INVESTMENTS - --------------------------------------------------------------------------------
SHARES VALUE - ----------------------------------------------------------------------- BIOTECH RESEARCH & PRODUCTS (5.3%) *Corixa Corp. ...................... 195,011 $ 2,938,816 *Genta, Inc. ....................... 118,242 1,682,584 *Immunomedics, Inc. ................ 142,435 2,885,733 *Integra LifeSciences Holdings Corp. ............................ 213,175 5,615,029 *Neurocrine Biosciences, Inc. ...... 129,855 6,662,860 *Quintiles Transnational Corp. ..... 365,094 5,870,712 *Transkaryotic Therapies, Inc. ..... 163,718 7,007,130 -------------- 32,662,864 -------------- CHEMICALS (2.1%) *Cabot Microelectronics Corp. ...... 70,407 5,579,755 *Wilson Greatbatch Technologies, Inc. ............................. 201,000 7,256,100 -------------- 12,835,855 -------------- COMMUNICATIONS TECHNOLOGY (1.4%) *Advanced Fibre Communications, Inc. ............................. 144,320 2,550,134 *Enterasys Networks, Inc. .......... 260,570 2,306,045 *Spectrian Corp. ................... 57,230 631,247 *WebEx Communications, Inc. ........ 124,440 3,092,334 -------------- 8,579,760 -------------- COMPUTER SERVICES, SOFTWARE & SYSTEMS (10.1%) *Caminus Corp. ..................... 59,660 1,372,180 *Documentum, Inc. .................. 236,731 5,141,797 *Edwards, J.D. & Co. ............... 222,728 3,663,876 *Electronics for Imaging, Inc. ..... 135,220 3,016,758 *HNC Software, Inc. ................ 220,843 4,549,366 *Manhattan Associates, Inc. ........ 115,974 3,380,642 *Mentor Graphics Corp. ............. 136,850 3,225,554 *National Instruments Corp. ........ 105,860 3,965,516 *NetIQ Corp. ....................... 165,352 5,830,311 *OpenTV Corp. ...................... 60,200 497,854 *Precise Software Solutions Ltd. ... 355,164 7,337,688 *Retek, Inc. ....................... 311,401 9,301,548 *TriZetto Group, Inc. .............. 284,200 3,728,704 *Websense, Inc. .................... 62,870 2,016,241 *Wind River Systems, Inc. .......... 318,280 5,700,395 -------------- 62,728,430 -------------- COMPUTER TECHNOLOGY (1.3%) *Computer Network Technology Corp. ............................ 136,592 2,429,972 *Optimal Robotics Corp. (Class A)... 164,820 5,842,869 -------------- 8,272,841 -------------- CONSTRUCTION (0.6%) Granite Construction, Inc. ......... 146,724 3,533,114 --------------
SHARES VALUE - ----------------------------------------------------------------------- CONSUMER ELECTRONICS (1.5%) *EarthLink, Inc. ................... 408,640 $ 4,973,149 *THQ, Inc. ......................... 85,950 4,165,996 -------------- 9,139,145 -------------- CONSUMER PRODUCTS (1.6%) *Direct Focus, Inc. ................ 223,580 6,975,696 *Oakley, Inc. ...................... 180,500 2,934,930 -------------- 9,910,626 -------------- DIVERSIFIED FINANCIAL SERVICES (0.8%) *Willis Group Holdings Ltd. ........ 214,949 5,062,049 -------------- DRUGS & PHARMACEUTICALS (12.1%) *Alkermes, Inc. .................... 233,761 6,161,940 *American Pharmaceutical Partners, Inc. ............................. 175,100 3,642,080 *Barr Laboratories, Inc. ........... 67,039 5,320,215 *Biovail Corp. ..................... 172,220 9,687,375 *Endo Pharmaceuticals Holdings, Inc. ............................. 207,000 2,415,690 *First Horizon Pharmaceutical Corp. ............................ 201,039 5,908,536 *Guilford Pharmaceuticals, Inc. .... 141,653 1,699,836 *Inhale Therapeutic Systems, Inc. ............................. 256,640 4,760,672 *Medicis Pharmaceutical Corp. (Class A)................................ 69,830 4,510,320 *Pharmaceutical Resources, Inc. .... 171,171 5,785,580 *Priority Healthcare Corp. (Class B)................................ 201,561 7,092,932 *Sepracor, Inc. .................... 240,162 13,703,644 *SICOR, Inc. ....................... 256,439 4,020,963 -------------- 74,709,783 -------------- EDUCATION SERVICES (5.5%) *Career Education Corp. ............ 106,830 3,662,132 *DeVry, Inc. ....................... 102,449 2,914,674 *Education Management Corp. ........ 163,451 5,925,099 *ITT Educational Services, Inc. .... 135,898 5,010,559 Strayer Education, Inc. ............ 86,632 4,220,711 *Sylvan Learning Systems, Inc. ..... 545,971 12,049,580 -------------- 33,782,755 -------------- ELECTRICAL & ELECTRONICS (0.2%) *Plexus Corp. ...................... 38,068 1,011,086 -------------- ELECTRONICS (1.0%) *Amphenol Corp. (Class A)........... 133,455 6,412,513 -------------- ELECTRONICS: MEDICAL SYSTEMS (0.1%) *TheraSense, Inc. .................. 20,822 516,386 -------------- ELECTRONICS: SEMICONDUCTORS (2.9%) *ESS Technology, Inc. .............. 147,660 3,139,252 *Genesis Microchip, Inc. ........... 31,760 2,099,971 *Lattice Semiconductor Corp. ....... 359,871 7,402,546
See Accompanying Notes to Financial Statements 51 SCHEDULE OF INVESTMENTS - --------------------------------------------------------------------------------
COLUMBIA SMALL CAP FUND (CONT.) DECEMBER 31, 2001 SHARES VALUE - ----------------------------------------------------------------------- iy*Microsemi Corp. ................. 151,768 $ 4,507,510 *Pixelworks, Inc. .................. 65,960 1,059,317 -------------- 18,208,596 -------------- ENERGY MISCELLANEOUS (1.0%) *Petroleum Geo-Services ADR......... 396,130 3,153,195 *Veritas DGC, Inc. ................. 154,309 2,854,716 -------------- 6,007,911 -------------- ENGINEERING & CONTRACT SERVICES (1.3%) *Jacobs Engineering Group, Inc. .... 47,904 3,161,664 *URS Corp. ......................... 171,990 4,714,246 -------------- 7,875,910 -------------- FINANCIAL DATA PROCESSING SERVICES (2.2%) *Advent Software, Inc. ............. 99,986 4,994,301 *Alliance Data Systems Corp. ....... 202,510 3,878,066 Global Payments, Inc. .............. 138,475 4,763,540 -------------- 13,635,907 -------------- FINANCIAL MISCELLANEOUS (0.8%) Metris Companies, Inc. ............. 188,685 4,851,091 -------------- HEALTH CARE FACILITIES (2.4%) *DaVita, Inc. ...................... 600,104 14,672,543 -------------- HEALTH CARE MANAGEMENT SERVICES (5.0%) *Caremark Rx, Inc. ................. 742,922 12,117,058 *Cerner Corp. ...................... 29,903 1,493,057 *Eclipsys Corp. .................... 159,368 2,669,414 *First Health Group Corp. .......... 393,556 9,736,575 *Trigon Healthcare, Inc. ........... 70,568 4,900,948 -------------- 30,917,052 -------------- HEALTH CARE SERVICES (4.3%) *Express Scripts, Inc. ............. 255,340 11,939,698 *Province Healthcare Co. ........... 50,288 1,551,888 *Stericycle, Inc. .................. 217,146 13,219,849 -------------- 26,711,435 -------------- HOMEBUILDING (0.9%) D.R. Horton, Inc. .................. 177,012 5,745,810 -------------- INSURANCE: MULTI-LINE (0.2%) PartnerRe Ltd. ..................... 26,628 1,437,912 -------------- INSURANCE: PROPERTY-CASUALTY (0.8%) IPC Holdings Ltd. .................. 157,800 4,670,880 --------------
SHARES VALUE - ----------------------------------------------------------------------- MACHINERY: OIL WELL EQUIPMENT & SERVICES (0.5%) *Global Industries Ltd. ............ 210,738 $ 1,875,568 *Hanover Compressor Co. ............ 58,006 1,465,232 -------------- 3,340,800 -------------- MACHINERY: SPECIALTY (0.4%) *Joy Global, Inc. .................. 157,500 2,646,000 -------------- MANUFACTURED HOUSING (1.0%) Clayton Homes, Inc. ................ 360,028 6,156,479 -------------- MEDICAL & DENTAL SUPPLIES (2.8%) *American Medical Systems Holdings, Inc. ............................. 325,150 6,727,353 *Orthofix International NV ......... 25,800 957,244 *Schein, Henry, Inc. ............... 129,731 4,803,939 *Urologix, Inc. .................... 242,910 4,870,346 -------------- 17,358,882 -------------- MEDICAL SERVICES (0.2%) *AMN Healthcare Services, Inc. ..... 43,851 1,201,517 -------------- PRODUCTION TECHNOLOGY EQUIPMENT (4.7%) *ASM International NV............... 316,962 6,183,929 *ASE Test Ltd. ..................... 271,828 3,786,564 *Credence Systems Corp. ............ 240,495 4,465,992 *Photon Dynamics, Inc. ............. 69,404 3,168,293 *Photronics, Inc. .................. 97,886 3,068,726 *PRI Automation, Inc. .............. 149,564 3,058,584 *Rudolph Technologies, Inc. ........ 78,261 2,685,917 *Ultratech Stepper, Inc. ........... 153,064 2,528,617 -------------- 28,946,622 -------------- RADIO & TELEVISION BROADCASTERS (2.4%) *Entercom Communications Corp. ..... 172,100 8,605,000 *Radio One, Inc. (Class D).......... 360,402 6,490,840 -------------- 15,095,840 -------------- REAL ESTATE INVESTMENT TRUSTS (REITs) (1.2%) Health Care Property Investors, Inc. ............................. 52,592 1,904,356 Healthcare Realty Trust, Inc. ...... 124,700 3,491,600 Nationwide Health Properties, Inc. ............................. 104,802 1,958,750 -------------- 7,354,706 -------------- RESTAURANTS (1.5%) Outback Steakhouse, Inc. ........... 274,472 9,400,666 -------------- RETAIL (8.0%) *Abercrombie & Fitch Co. (Class A) ............................... 153,252 4,065,776 *American Eagle Outfitters, Inc. ... 158,800 4,155,796 *Charlotte Russe Holding, Inc. ..... 188,914 3,515,689 *Foot Locker, Inc. ................. 181,440 2,839,536 Intimate Brands, Inc. .............. 361,000 5,364,460 *Michaels Stores, Inc. ............. 242,675 7,996,141 *O'Reilly Automotive, Inc. ......... 143,612 5,237,530
See Accompanying Notes to Financial Statements 52 SCHEDULE OF INVESTMENTS - --------------------------------------------------------------------------------
SHARES OR PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- Talbots, Inc., The.................. 124,299 $ 4,505,839 *Zale Corp. ........................ 274,039 11,476,753 -------------- 49,157,520 -------------- SERVICES: COMMERCIAL (1.5%) *On Assignment, Inc. ............... 235,782 5,415,912 *Tetra Tech, Inc. .................. 178,090 3,545,772 -------------- 8,961,684 -------------- SHOES (0.5%) *Reebok International Ltd. ......... 120,300 3,187,950 -------------- TRUCKERS (1.0%) USFreightways Corp. ................ 91,256 2,865,438 *Yellow Corp. ...................... 142,580 3,578,758 -------------- 6,444,196 -------------- Total Common Stocks (Cost $489,388,351)................... 582,217,126 -------------- REPURCHASE AGREEMENTS (8.0%) J.P. Morgan Securities, Inc. 1.78% Dated 12/31/2001, due 01/02/2002 in the amount of $31,818,416. Collateralized 102% by U.S. Treasury Strips due 02/15/2002 to 02/15/2014...... $31,816,860 31,816,860 Merrill Lynch 1.83% Dated 12/31/2001, due 01/02/2002 in the amount of $17,300,865. Collateralized 102% by U.S. Treasury Strips due 05/15/2012 to 11/15/2026........................ 17,300,000 17,300,000 -------------- Total Repurchase Agreements (Cost $49,116,860).................... 49,116,860 -------------- TOTAL INVESTMENTS (102.2%) (Cost $538,505,211)................... 631,333,986 OTHER ASSETS LESS LIABILITIES (-2.2%)............................... (13,368,037) -------------- NET ASSETS (100.0%).................... $ 617,965,949 ==============
* Non-income producing
COLUMBIA REAL ESTATE EQUITY FUND DECEMBER 31, 2001 SHARES VALUE - ----------------------------------------------------------------------- COMMON STOCKS (90.4%) HOTEL/MOTEL (2.0%) Starwood Hotels & Resorts Worldwide, Inc. ............................. 421,000 $ 12,566,850 --------------
SHARES VALUE - ----------------------------------------------------------------------- REAL ESTATE OPERATIONS/DEVELOPMENT (4.2%) TrizecHahn Corp. ................... 1,678,400 $ 26,350,880 -------------- REAL ESTATE MANAGEMENT/SERVICES (3.6%) *Security Capital Group, Inc. (Class B)................................ 876,500 22,236,805 -------------- REAL ESTATE INVESTMENT TRUSTS (REITS) (80.6%) APARTMENTS (15.0%) Archstone-Smith Trust............. 876,971 23,064,337 AvalonBay Communities, Inc. ...... 634,200 30,004,002 Camden Property Trust............. 289,500 10,624,650 Equity Residential Properties Trust........................... 1,034,306 29,694,926 -------------- 93,387,915 -------------- COMMUNITY CENTERS (8.0%) Kimco Realty Corp. ............... 381,600 12,474,504 Pan Pacific Retail Properties, Inc. ........................... 212,800 6,111,616 Vornado Realty Trust.............. 743,400 30,925,440 -------------- 49,511,560 -------------- INDUSTRIAL (16.0%) Alexandria Real Estate Equities, Inc. ........................... 421,600 17,327,760 AMB Property Corp. ............... 372,300 9,679,800 CenterPoint Properties Trust...... 57,600 2,868,480 First Industrial Realty Trust, Inc. ........................... 128,700 4,002,570 iStar Financial, Inc. ............ 1,187,750 29,634,363 Liberty Property Trust............ 233,000 6,955,050 ProLogis Trust.................... 687,745 14,793,395 Public Storage, Inc. ............. 429,032 14,329,669 -------------- 99,591,087 -------------- LODGING (1.9%) Host Marriott Corp. .............. 1,302,700 11,724,300 -------------- OFFICE (25.6%) Boston Properties, Inc. .......... 339,100 12,885,800 CarrAmerica Realty Corp. ......... 833,200 25,079,320 Cousins Properties, Inc. ......... 1,497,250 36,473,010 Equity Office Properties Trust.... 1,954,937 58,804,505 Prentiss Properties Trust......... 249,400 6,846,030 Reckson Associates Realty Corp. .......................... 813,300 18,998,688 -------------- 159,087,353 -------------- OTHER (4.3%) Plum Creek Timber Company, Inc. ........................... 939,218 26,626,830 -------------- SHOPPING MALLS (9.8%) General Growth Properties, Inc. ........................... 787,900 30,570,520 Simon Property Group, Inc. ....... 1,024,256 30,041,428 -------------- 60,611,948 -------------- Total Common Stocks (Cost $495,891,999)................... 561,695,528 --------------
See Accompanying Notes to Financial Statements 53 SCHEDULE OF INVESTMENTS - --------------------------------------------------------------------------------
COLUMBIA REAL ESTATE EQUITY FUND (CONT.) DECEMBER 31, 2001 PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- REPURCHASE AGREEMENTS (9.4%) J.P. Morgan Securities, Inc. 1.78% Dated 12/31/2001, due 01/02/2002 in the amount of $32,540,833. Collateralized 102% by U.S. Treasury Strips due 02/15/2002 to 02/15/2014.......... $32,539,242 $ 32,539,242 Merrill Lynch 1.83% Dated 12/31/2001, due 01/02/2002 in the amount of $26,001,300. Collateralized 102% by U.S. Treasury Strips due 05/15/2012 to 11/15/2026.......... 26,000,000 26,000,000 -------------- Total Repurchase Agreements (Cost $58,539,242).................... 58,539,242 -------------- TOTAL INVESTMENTS (99.8%) (Cost $554,431,241)................... 620,234,770 OTHER ASSETS LESS LIABILITIES (0.2%)... 1,355,064 -------------- NET ASSETS (100.0%).................... $ 621,589,834 ============== * Non-income producing
COLUMBIA TECHNOLOGY FUND DECEMBER 31, 2001 SHARES VALUE - ----------------------------------------------------------------------- COMMON STOCKS (95.4%) BIOTECH RESEARCH & PRODUCTS (1.2%) *Neurocrine Biosciences, Inc. ...... 2,320 $ 119,039 -------------- COMMUNICATIONS TECHNOLOGY (8.7%) *Centillium Communications, Inc. ... 5,360 42,130 *Cisco Systems, Inc. ............... 10,400 188,344 *Enterasys Networks, Inc. .......... 12,130 107,350 *Harmonic, Inc. .................... 6,390 76,808 Lucent Technologies, Inc. .......... 16,200 101,898 *Networks Associates, Inc. ......... 2,480 64,108 *QUALCOMM, Inc. .................... 1,950 98,475 *TIBCO Software, Inc. .............. 15,210 227,085 -------------- 906,198 -------------- COMPUTER SERVICES, SOFTWARE & SYSTEMS (23.3%) *Actuate Corp. ..................... 19,710 103,872 *Amdocs Ltd. ....................... 4,550 154,564 *BEA Systems, Inc. ................. 6,000 92,460
SHARES VALUE - ----------------------------------------------------------------------- *Check Point Software Technologies Ltd. ............................. 2,320 $ 92,545 *Edwards, J.D. & Co. ............... 8,750 143,938 *Electronics for Imaging, Inc. ..... 4,930 109,988 *HNC Software, Inc. ................ 5,792 119,315 *Intuit, Inc. ...................... 3,390 144,956 *Macrovision Corp. ................. 4,004 141,021 *Manugistics Group, Inc. ........... 8,090 170,537 *Micromuse, Inc. ................... 3,420 51,300 *Microsoft Corp. ................... 1,500 99,405 *MRO Software, Inc. ................ 1,730 40,447 *NetIQ Corp. ....................... 3,910 137,867 *Oracle Corp. ...................... 7,800 107,718 *Rational Software Corp. ........... 5,125 99,938 *Retek, Inc. ....................... 5,090 152,038 *Siebel Systems, Inc. .............. 7,150 200,057 *SmartForce plc ADR ................ 4,435 109,766 *VERITAS Software Corp. ............ 3,400 152,388 -------------- 2,424,120 -------------- COMPUTER TECHNOLOGY (8.5%) *Computer Network Technology Corp. ............................ 8,910 158,509 *Emulex Corp. ...................... 3,060 120,901 *NVIDIA Corp. ...................... 1,550 103,695 *Optimal Robotics Corp. (Class A)... 3,760 133,292 *RadiSys Corp. ..................... 9,290 182,641 *Sun Microsystems, Inc. ............ 14,700 181,398 -------------- 880,436 -------------- CONSUMER ELECTRONICS (2.9%) *EarthLink, Inc. ................... 12,800 155,776 *Electronic Arts, Inc. ............. 810 48,560 *THQ, Inc. ......................... 2,030 98,394 -------------- 302,730 -------------- DRUGS & PHARMACEUTICALS (0.2%) *American Pharmaceutical Partners, Inc. ............................. 800 16,640 -------------- ELECTRONICS (4.7%) *Amphenol Corp. (Class A)........... 5,780 277,729 *Semtech Corp. ..................... 5,870 209,500 -------------- 487,229 -------------- ELECTRONICS: INSTRUMENTS, GAUGES & METERS (1.1%) *Tektronix, Inc. ................... 4,510 116,268 -------------- ELECTRONICS: SEMICONDUCTORS (18.9%) *Analog Devices, Inc. .............. 2,300 102,097 *ATI Technologies, Inc. ............ 4,000 50,800 *Broadcom Corp. (Class A) .......... 3,250 133,185 *Celestica, Inc. ................... 4,500 181,755
See Accompanying Notes to Financial Statements 54 SCHEDULE OF INVESTMENTS - --------------------------------------------------------------------------------
SHARES VALUE - ----------------------------------------------------------------------- *Cirrus Logic, Inc. ................ 10,240 $ 135,373 *ESS Technology, Inc. .............. 8,090 171,993 *Flextronics International Ltd. .... 7,600 182,324 *Genesis Microchip, Inc. ........... 840 55,541 *Integrated Circuit Systems, Inc. ............................. 3,650 82,453 Intel Corp. ........................ 2,950 92,778 *Lattice Semiconductor Corp. ....... 5,020 103,261 *Maxim Integrated Products, Inc. ... 2,000 105,020 *Micron Technology, Inc. ........... 3,450 106,950 *Microsemi Corp. ................... 6,710 199,287 *Pixelworks, Inc. .................. 3,150 50,589 *TriQuint Semiconductor, Inc. ...... 8,500 104,210 *Xilinx, Inc. ...................... 2,600 101,530 -------------- 1,959,146 -------------- ELECTRONICS: TECHNOLOGY (1.0%) Raytheon Co. ....................... 3,200 103,904 -------------- FINANCIAL DATA PROCESSING SERVICES (3.7%) *Advent Software, Inc. ............. 4,136 206,593 *Alliance Data Systems Corp. ....... 6,870 131,561 *SunGard Data Systems, Inc. ........ 1,710 49,470 -------------- 387,624 -------------- MACHINERY: SPECIALTY (0.7%) Engineered Support Systems, Inc..... 2,040 69,788 -------------- PRODUCTION TECHNOLOGY EQUIPMENT (14.2%) *Applied Materials, Inc. ........... 2,500 100,250 *ASE Test Ltd. ..................... 12,940 180,254 *ASML Holding NV.................... 5,585 95,224 *Axcelis Technologies, Inc. ........ 7,310 94,226 *Chartered Semiconductor Manufacturing Ltd. ADR ........... 6,870 181,636 *Credence Systems Corp. ............ 8,310 154,317 *Entegris, Inc. .................... 13,140 144,015 *Lam Research Corp. ................ 4,200 97,524 *Novellus Systems, Inc. ............ 2,800 110,460 *Teradyne, Inc. .................... 1,680 50,635 *United Microelectronics Corp. ADR.. 27,660 265,536 -------------- 1,474,077 -------------- SERVICES: COMMERCIAL (1.5%) *Accenture Ltd. (Class A)........... 5,900 158,828 -------------- TELECOMMUNICATION EQUIPMENT (2.9%) Nokia Corp. ADR..................... 6,400 156,992 *Polycom, Inc. ..................... 4,340 147,864 -------------- 304,856 --------------
SHARES OR PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- UTILITIES: CABLE TELEVISION & RADIO (1.9%) *Adelphia Communications Corp. (Class A)......................... 6,300 $ 196,434 -------------- Total Common Stocks (Cost $8,804,687)..................... 9,907,317 -------------- WARRANT (1.6%) PRODUCTION TECHNOLOGY EQUIPMENT Merrill-CW02 Taiwan Semiconductor 08/23/2002 (Cost $126,635)........ 66,000 165,264 -------------- REPURCHASE AGREEMENT (6.0%) J.P. Morgan Securities, Inc. 1.78% Dated 12/31/2001, due 01/02/2002 in the amount of $620,971. Collateralized 102% by U.S. Treasury Strips due 02/15/2002 to 02/15/2014 (Cost $620,941)......................... $ 620,941 620,941 -------------- TOTAL INVESTMENTS (103.0%) (Cost $9,552,263)........................... 10,693,522 OTHER ASSETS LESS LIABILITIES (-3.0%)............................... (308,459) -------------- NET ASSETS (100.0%).................... $ 10,385,063 ============== * Non-income producing
COLUMBIA STRATEGIC VALUE FUND DECEMBER 31, 2001 SHARES VALUE - ---------------------------------------------------------------------- COMMON STOCKS (80.7%) AGRICULTURE, FISH & RANCH (0.3%) Monsanto Co. ........................ 10,200 $ 344,760 ------------ AIR TRANSPORT (1.0%) *AMR Corp. .......................... 30,000 665,100 KLM Royal Dutch Airlines............. 60,000 664,800 ------------ 1,329,900 ------------ ALUMINUM (0.6%) Alcan, Inc. ......................... 25,000 898,250 ------------ AUTO PARTS: ORIGINAL EQUIPMENT (0.6%) Autoliv, Inc. ....................... 40,000 812,400 ------------ BANKS (4.5%) Bank One Corp. ...................... 20,000 781,000 Comerica, Inc. ...................... 10,000 573,000 Glacier Bancorp, Inc. ............... 30,000 624,600 Huntington Bancshares, Inc. ......... 25,000 429,750 KeyCorp.............................. 30,000 730,200
See Accompanying Notes to Financial Statements 55 SCHEDULE OF INVESTMENTS - --------------------------------------------------------------------------------
COLUMBIA STRATEGIC VALUE FUND (CONT.) DECEMBER 31, 2001 SHARES VALUE - ---------------------------------------------------------------------- Kookmin Bank ADR..................... 31,800 $ 1,237,020 PNC Financial Services Group, Inc. .............................. 10,000 562,000 U.S. Bancorp......................... 20,000 418,600 Wachovia Corp. ...................... 30,000 940,800 ------------ 6,296,970 ------------ BANKS: NEW YORK CITY (0.5%) J.P. Morgan Chase & Co. ............. 20,000 727,000 ------------ BEVERAGE: BREWERS & WINERIES (0.5%) Fomento Economico Mexicano SA de CV ADR................................ 20,000 691,000 ------------ BEVERAGE: SOFT DRINKS (0.3%) *Pepsi-Gemex SA de CV GDR............ 60,000 400,800 ------------ BIOTECH RESEARCH & PRODUCTS (0.7%) *Elan Corp. plc ADR.................. 20,000 901,200 ------------ BUILDING MATERIALS (0.7%) Martin Marietta Materials, Inc. ..... 20,000 932,000 ------------ CHEMICALS (1.6%) Calgon Carbon Corp. ................. 40,000 334,000 Dow Chemical Co. .................... 25,000 844,500 *Energizer Holdings, Inc. ........... 30,000 571,500 Schulman, A., Inc. .................. 40,000 546,000 ------------ 2,296,000 ------------ COMMUNICATIONS TECHNOLOGY (2.9%) *Comverse Technology, Inc. .......... 30,000 671,100 Lucent Technologies, Inc. ........... 75,000 471,750 Motorola, Inc. ...................... 30,000 450,600 *Networks Associates, Inc. .......... 30,000 775,500 Symbol Technologies, Inc. ........... 60,000 952,800 *Tellabs, Inc. ...................... 50,000 751,500 ------------ 4,073,250 ------------ COMPUTER SERVICES, SOFTWARE & SYSTEMS (3.2%) Adobe Systems, Inc. ................. 15,000 465,750 *Ascential Software Corp. ........... 50,000 202,500 *Aware, Inc. ........................ 100,000 830,000 *BMC Software, Inc. ................. 50,000 818,500 *Edwards, J.D. & Co. ................ 30,000 493,500 *i2 Technologies, Inc. .............. 50,000 395,000 *Interwoven, Inc. ................... 30,000 292,200 *Raindance Communications, Inc. ..... 50,000 285,500 SAP AG ADR........................... 20,000 638,600 ------------ 4,421,550 ------------
SHARES VALUE - ---------------------------------------------------------------------- COMPUTER TECHNOLOGY (1.5%) *Apple Computer, Inc. ............... 30,000 $ 657,000 *SanDisk Corp. ...................... 75,000 1,080,000 *UNOVA, Inc. ........................ 50,000 290,000 ------------ 2,027,000 ------------ CONSTRUCTION (0.6%) Chicago Bridge & Iron Co. NV......... 30,000 801,000 ------------ CONSUMER PRODUCTS (1.8%) Gillette Co. ........................ 35,000 1,169,000 Kimberly-Clark Corp. ................ 10,000 598,000 Kimberly-Clark de Mexico SA de CV ADR................................ 50,000 732,940 ------------ 2,499,940 ------------ DIVERSIFIED FINANCIAL SERVICES (0.7%) Citigroup, Inc. ..................... 20,000 1,009,600 ------------ DRUG & GROCERY STORE CHAINS (0.6%) Albertson's, Inc. ................... 25,000 787,250 ------------ DRUGS & PHARMACEUTICALS (2.5%) Bristol-Myers Squibb Co. ............ 15,000 765,000 Novartis AG ADR...................... 20,000 730,000 Pharmacia Corp. ..................... 20,000 853,000 Schering-Plough Corp. ............... 30,000 1,074,300 ------------ 3,422,300 ------------ ELECTRICAL & ELECTRONICS (0.5%) *Plexus Corp. ....................... 25,000 664,000 ------------ ELECTRONICS (2.6%) Methode Electronics, Inc. (Class A)................................. 90,000 720,000 Samsung Electronics Co., Ltd. GDR (144A)............................. 15,000 1,735,500 *Sanmina-SCI Corp. .................. 60,000 1,194,000 ------------ 3,649,500 ------------ ELECTRONICS: EQUIPMENT & COMPONENTS (0.5%) Cooper Industries, Inc. ............. 20,000 698,400 ------------ ELECTRONICS: HOUSEHOLD APPLIANCES (1.0%) *Helen of Troy Ltd. ................. 50,000 620,500 Whirlpool Corp. ..................... 10,000 733,300 ------------ 1,353,800 ------------ ELECTRONICS: SEMICONDUCTORS (2.0%) *Agere Systems, Inc. (Class A)....... 100,000 569,000 Avnet, Inc. ......................... 20,000 509,400 *Cypress Semiconductor Corp. ........ 30,000 597,900 *Micron Technology, Inc. ............ 20,000 620,000 Texas Instruments, Inc. ............. 20,000 560,000 ------------ 2,856,300 ------------
See Accompanying Notes to Financial Statements 56 SCHEDULE OF INVESTMENTS - --------------------------------------------------------------------------------
SHARES VALUE - ---------------------------------------------------------------------- ELECTRONICS: TECHNOLOGY (0.5%) Raytheon Co. ........................ 20,000 $ 649,400 ------------ ENERGY MISCELLANEOUS (0.3%) *Willbros Group, Inc. ............... 30,000 480,000 ------------ FERTILIZERS (0.5%) IMC Global, Inc. .................... 50,000 650,000 ------------ FOODS (1.7%) *Hain Celestial Group, Inc. ......... 20,000 549,200 Heinz, H.J. Co. ..................... 30,000 1,233,600 Tyson Foods, Inc. (Class A).......... 50,000 577,500 ------------ 2,360,300 ------------ FOREST PRODUCTS (0.3%) Longview Fibre Co. .................. 40,000 472,400 ------------ FUNERAL PARLORS & CEMETERIES (0.3%) *Service Corp. Int'l. ............... 75,000 374,250 ------------ HEALTH CARE FACILITIES (0.8%) *Manor Care, Inc. ................... 50,000 1,185,500 ------------ HEALTH CARE MANAGEMENT SERVICES (0.8%) Hooper Holmes, Inc. ................. 75,000 671,250 *WebMD Corp. ........................ 60,000 423,600 ------------ 1,094,850 ------------ IDENTIFICATION CONTROL (1.0%) *Osmonics, Inc. ..................... 30,000 420,600 Parker Hannifin Corp. ............... 20,000 918,200 ------------ 1,338,800 ------------ INSURANCE: MULTI-LINE (2.0%) AON Corp. ........................... 20,000 710,400 SAFECO Corp. ........................ 40,000 1,246,000 St. Paul Companies, Inc., The........ 20,000 879,400 ------------ 2,835,800 ------------ INVESTMENT MANAGEMENT COMPANIES (0.3%) Japan OTC Equity Fund, Inc. ......... 75,000 420,750 ------------ MACHINERY: AGRICULTURAL (0.4%) CNH Global NV........................ 100,000 609,000 ------------ MACHINERY: CONSTRUCTION & HANDLING (0.5%) Komatsu Ltd. ADR..................... 50,000 715,705 ------------ MACHINERY: ENGINES (0.8%) Cummins, Inc. ....................... 30,000 1,156,200 ------------ MACHINERY: INDUSTRIAL/SPECIALTY (0.7%) Milacron, Inc. ...................... 60,000 948,600 ------------
SHARES VALUE - ---------------------------------------------------------------------- MACHINERY: OIL WELL EQUIPMENT & SERVICES (1.8%) *Core Laboratories NV................ 50,000 $ 701,000 GlobalSantaFe Corp. ................. 35,000 998,200 *National-Oilwell, Inc. ............. 40,000 824,400 ------------ 2,523,600 ------------ MACHINERY: SPECIALTY (0.4%) *Joy Global, Inc. ................... 30,000 504,000 ------------ MANUFACTURED HOUSING (0.7%) *Champion Enterprises, Inc. ......... 27,000 332,370 Clayton Homes, Inc. ................. 40,000 684,000 ------------ 1,016,370 ------------ MEDICAL & DENTAL SUPPLIES (3.0%) Bausch & Lomb, Inc. ................. 20,000 753,200 Becton Dickinson & Co. .............. 40,000 1,326,000 *Boston Scientific Corp. ............ 50,000 1,206,000 Cooper Companies, Inc., The.......... 17,500 874,650 ------------ 4,159,850 ------------ METALS & MINERALS MISCELLANEOUS (0.7%) *Stillwater Mining Co. .............. 30,000 555,000 *UCAR International, Inc. ........... 40,000 428,000 ------------ 983,000 ------------ MISCELLANEOUS MATERIALS & PROCESSING (0.5%) Cameco Corp. ........................ 30,000 742,800 ------------ MULTI-SECTOR COMPANIES (2.2%) Honeywell International, Inc. ....... 30,000 1,014,600 Minnesota Mining & Manufacturing Co. ............................... 10,000 1,182,100 Textron, Inc. ....................... 20,000 829,200 ------------ 3,025,900 ------------ OFFSHORE DRILLING (0.1%) Saipem S.p.A......................... 40,000 195,884 ------------ OIL: CRUDE PRODUCERS (2.4%) Apache Corp. ........................ 27,500 1,371,700 *Encore Acquisition Co. ............. 30,000 399,300 *Forest Oil Corp. ................... 20,000 564,200 *Pioneer Natural Resources Co. ...... 50,900 980,334 ------------ 3,315,534 ------------ OIL: INTEGRATED DOMESTIC (0.5%) Unocal Corp. ........................ 20,000 721,400 ------------ OIL: INTEGRATED INTERNATIONAL (0.6%) Conoco, Inc. ........................ 30,000 849,000 ------------ PAINTS & COATINGS (1.4%) Fuller, H.B. Co. .................... 40,000 1,150,800 Sherwin-Williams Co., The............ 30,000 825,000 ------------ 1,975,800 ------------
See Accompanying Notes to Financial Statements 57 SCHEDULE OF INVESTMENTS - --------------------------------------------------------------------------------
COLUMBIA STRATEGIC VALUE FUND (CONT.) DECEMBER 31, 2001 SHARES VALUE - ---------------------------------------------------------------------- PAPER (2.2%) Bowater, Inc. ....................... 20,000 $ 954,000 International Paper Co. ............. 20,000 807,000 Sappi Ltd. ADR....................... 50,000 512,500 Westvaco Corp. ...................... 30,000 853,500 ------------ 3,127,000 ------------ POLLUTION CONTROL & ENVIRONMENTAL SERVICES (1.0%) *Ionics, Inc. ....................... 47,500 1,426,425 ------------ PRODUCTION TECHNOLOGY EQUIPMENT (1.9%) *FEI Co. ............................ 20,000 630,200 *Mattson Technology, Inc. ........... 65,000 572,650 *Teradyne, Inc. ..................... 20,000 602,800 *Ultratech Stepper, Inc. ............ 50,000 826,000 ------------ 2,631,650 ------------ PUBLISHING: MISCELLANEOUS (1.2%) Nelson, Thomas, Inc. ................ 25,500 283,050 Reader's Digest Association, Inc. (Class A).......................... 60,000 1,384,800 ------------ 1,667,850 ------------ RADIO & TELEVISION BROADCASTERS (1.7%) *General Motors Corp. (Class H)...... 75,000 1,158,750 *Hispanic Broadcasting Corp. ........ 30,700 782,850 *Sinclair Broadcast Group, Inc. (Class A).......................... 40,000 378,400 ------------ 2,320,000 ------------ REAL ESTATE INVESTMENT TRUSTS (REITS) (0.9%) Hilton Hotels Corp. ................. 75,000 819,000 *La Quinta Properties, Inc. ......... 75,000 430,500 ------------ 1,249,500 ------------ RECREATIONAL VEHICLES & BOATS (0.8%) Fleetwood Enterprises, Inc. ......... 100,000 1,133,000 ------------ RESTAURANTS (1.0%) CBRL Group, Inc. .................... 30,000 883,200 McDonald's Corp. .................... 20,000 529,400 ------------ 1,412,600 ------------
SHARES VALUE - ---------------------------------------------------------------------- RETAIL (4.5%) *Abercrombie & Fitch Co. (Class A)... 30,000 $ 795,900 *Borders Group, Inc. ................ 40,000 793,600 Circuit City Group................... 50,000 1,297,500 *Dollar Tree Stores, Inc. ........... 30,000 927,300 *Galyan's Trading Co. ............... 40,000 569,600 Penney, J.C. Company, Inc. .......... 30,000 807,000 Talbots, Inc., The................... 30,000 1,087,500 ------------ 6,278,400 ------------ SECURITY BROKERAGE & SERVICES (0.6%) Bear Stearns Companies, Inc. ........ 15,000 879,600 ------------ SERVICES: COMMERCIAL (2.3%) *Cendant Corp. ...................... 50,000 980,500 Central Parking Corp. ............... 50,000 982,000 Waste Management, Inc. .............. 37,500 1,196,625 ------------ 3,159,125 ------------ SHIPPING (0.5%) Alexander & Baldwin, Inc. ........... 25,000 667,500 ------------ STEEL (0.7%) *Oregon Steel Mills, Inc. ........... 87,500 433,125 *Steel Dynamics, Inc. ............... 50,000 580,500 ------------ 1,013,625 ------------ TELECOMMUNICATION EQUIPMENT (0.2%) Ericsson, LM Telephone Co. ADR (Class B)................................. 60,000 313,200 ------------ TIRES & RUBBER (0.5%) Goodyear Tire & Rubber Co., The...... 30,000 714,300 ------------ TOYS (0.7%) Hasbro, Inc. ........................ 60,000 973,800 ------------ UTILITIES: ELECTRICAL (1.7%) ALLETE, Inc. ........................ 20,000 504,000 Cia Paranaense de Energia-Copel ADR.. 60,000 471,000 CMS Energy Corp. .................... 20,000 480,600 IDACORP, Inc. ....................... 15,000 609,000 Korea Electric Power Corp. ADR....... 40,000 366,000 ------------ 2,430,600 ------------ UTILITIES: TELECOMMUNICATIONS (1.2%) Hellenic Telecommunications Organization SA ADR................ 50,000 381,000 Qwest Communications International, Inc. .............................. 50,000 706,500 Sprint Corp. (Fon Group)............. 30,000 602,400 ------------ 1,689,900 ------------
See Accompanying Notes to Financial Statements 58 SCHEDULE OF INVESTMENTS - --------------------------------------------------------------------------------
SHARES OR PRINCIPAL AMOUNT VALUE - ---------------------------------------------------------------------- UTILITIES: WATER (0.2%) California Water Service Group....... 10,000 $ 257,500 ------------ Total Common Stocks (Cost $97,282,325)..................... 112,544,438 ------------ REPURCHASE AGREEMENTS (18.9%) J.P. Morgan Securities, Inc. 1.78% Dated 12/31/2001, due 01/02/2002 in the amount of $13,805,240. Collateralized 102% by U.S. Treasury Strips due 02/15/2002 to 02/15/2014........... $13,804,565 13,804,565 Merrill Lynch 1.83% Dated 12/31/2001, due 01/02/2002 in the amount of $12,550,628. Collateralized 102% by U.S. Treasury Strips due 05/15/2012 to 11/15/2026........... 12,550,000 12,550,000 ------------ Total Repurchase Agreements (Cost $26,354,565)..................... 26,354,565 ------------ TOTAL INVESTMENTS (99.6%) (Cost $123,636,890).................... 138,899,003 OTHER ASSETS LESS LIABILITIES (0.4%).... 604,702 ------------ NET ASSETS (100.0%)..................... $139,503,705 ============ * Non-income producing
COLUMBIA BALANCED FUND DECEMBER 31, 2001 SHARES VALUE - ----------------------------------------------------------------------- COMMON STOCKS (56.6%) ADVERTISING AGENCIES (0.3%) Interpublic Group of Companies, Inc., The......................... 100,900 $ 2,980,586 -------------- ALUMINUM (0.4%) Alcan, Inc. ........................ 106,550 3,828,341 -------------- AUTO PARTS: ORIGINAL EQUIPMENT (0.3%) Magna International, Inc. (Class A)................................ 44,250 2,808,548 -------------- BANKS (1.7%) Bank of America Corp. .............. 155,310 9,776,765 Bank One Corp. ..................... 182,200 7,114,910 -------------- 16,891,675 -------------- BANKS: NEW YORK CITY (0.7%) J.P. Morgan Chase & Co. ............ 196,940 7,158,769 --------------
SHARES VALUE - ----------------------------------------------------------------------- BIOTECH RESEARCH & PRODUCTS (1.9%) Baxter International, Inc. ......... 305,000 $ 16,357,150 *Biogen, Inc. ...................... 17,750 1,017,962 *Genentech, Inc. ................... 25,000 1,356,250 -------------- 18,731,362 -------------- CABLE TELEVISION SERVICES (1.3%) *Charter Communications, Inc. (Class A)................................ 395,925 6,505,048 *Liberty Media Corp. (Class A)...... 433,828 6,073,592 -------------- 12,578,640 -------------- COMMUNICATIONS & MEDIA (1.1%) *AOL Time Warner, Inc............... 243,462 7,815,130 *Gemstar-TV Guide International, Inc. ............................. 120,800 3,346,160 -------------- 11,161,290 -------------- COMMUNICATIONS TECHNOLOGY (1.5%) *Cisco Systems, Inc................. 430,100 7,789,111 Lucent Technologies, Inc. .......... 1,089,800 6,854,842 -------------- 14,643,953 -------------- COMPUTER SERVICES, SOFTWARE & SYSTEMS (3.1%) *Amdocs Ltd. ....................... 89,250 3,031,822 *BEA Systems, Inc. ................. 58,050 894,551 *Microsoft Corp. ................... 284,900 18,880,323 *Oracle Corp. ...................... 320,150 4,421,271 *PeopleSoft, Inc. .................. 56,304 2,263,421 *Siebel Systems, Inc. .............. 34,050 952,719 -------------- 30,444,107 -------------- COMPUTER TECHNOLOGY (1.1%) International Business Machines Corp. ............................ 54,800 6,628,608 *Sun Microsystems, Inc. ............ 356,700 4,401,678 -------------- 11,030,286 -------------- CONSUMER PRODUCTS (0.7%) Gillette Co. ....................... 212,100 7,084,140 -------------- DIVERSIFIED FINANCIAL SERVICES (4.8%) American Express Co. ............... 245,950 8,777,955 Citigroup, Inc. .................... 518,993 26,198,767 Marsh & McLennan Companies, Inc. ... 35,800 3,846,710 Merrill Lynch & Co., Inc. .......... 105,350 5,490,842 Morgan Stanley Dean Witter & Co. ... 60,500 3,384,370 -------------- 47,698,644 -------------- Drug & Grocery Store Chains (0.1%) Walgreen Co. ....................... 17,750 597,465 --------------
See Accompanying Notes to Financial Statements 59 SCHEDULE OF INVESTMENTS - --------------------------------------------------------------------------------
COLUMBIA BALANCED FUND (CONT.) DECEMBER 31, 2001 SHARES VALUE - ----------------------------------------------------------------------- Drugs & Pharmaceuticals (6.3%) Abbott Laboratories................. 194,250 $ 10,829,438 Allergan, Inc. ..................... 19,200 1,440,960 Bristol-Myers Squibb Co. ........... 350,569 17,879,019 *MedImmune, Inc..................... 61,800 2,864,430 Pfizer, Inc. ....................... 509,350 20,297,597 Pharmacia Corp. .................... 195,500 8,338,075 -------------- 61,649,519 -------------- ELECTRONICS: SEMICONDUCTORS (3.8%) *Agere Systems, Inc. (Class A)...... 366,000 2,082,540 *Celistica, Inc..................... 124,850 5,042,692 *Flextronics International Ltd. .... 174,600 4,188,654 Intel Corp. ........................ 521,850 16,412,182 *Micron Technology, Inc............. 67,300 2,086,300 *National Semiconductor Corp........ 171,600 5,283,564 Texas Instruments, Inc. ............ 87,050 2,437,400 -------------- 37,533,332 -------------- ELECTRONICS: TECHNOLOGY (0.6%) Raytheon Co. ....................... 169,300 5,497,171 -------------- ENTERTAINMENT (0.5%) *Viacom, Inc. (Class B)............. 116,450 5,141,268 -------------- FINANCE COMPANIES (0.4%) Capital One Financial Corp. ........ 64,300 3,468,985 -------------- FINANCIAL DATA PROCESSING SERVICES (0.6%) Automatic Data Processing, Inc. .... 93,350 5,498,315 -------------- FINANCIAL MISCELLANEOUS (1.2%) Fannie Mae.......................... 22,850 1,816,575 Freddie Mac......................... 154,450 10,101,030 -------------- 11,917,605 -------------- FOODS (0.3%) Kraft Foods, Inc. (Class A)......... 93,325 3,175,850 -------------- INSURANCE: MULTI-LINE (1.1%) American International Group, Inc. ............................. 138,662 11,009,763 -------------- INSURANCE: PROPERTY-CASUALTY (0.8%) *Berkshire Hathaway, Inc. (Class A)................................ 45 3,402,000 Chubb Corp. ........................ 61,950 4,274,550 -------------- 7,676,550 -------------- MACHINERY: CONSTRUCTION & HANDLING (0.3%) Caterpillar, Inc. .................. 54,750 2,860,688 -------------- MACHINERY: OIL WELL EQUIPMENT & SERVICES (0.2%) GlobalSantaFe Corp. ................ 84,150 2,399,958 --------------
SHARES VALUE - ----------------------------------------------------------------------- MEDICAL & DENTAL SUPPLIES (0.6%) Beckman Coulter, Inc. .............. 81,250 $ 3,599,375 *Zimmer Holdings, Inc. ............. 83,500 2,550,090 -------------- 6,149,465 -------------- MISCELLANEOUS EQUIPMENT (0.3%) Grainger, W.W., Inc. ............... 69,850 3,352,800 -------------- MULTI-SECTOR COMPANIES (6.3%) General Electric Co. ............... 551,000 22,084,080 Honeywell International, Inc. ...... 223,900 7,572,298 Minnesota Mining & Manufacturing Co. .............................. 80,400 9,504,084 *SPX Corp. ......................... 38,850 5,318,565 Tyco International Ltd. ............ 300,002 17,670,118 -------------- 62,149,145 -------------- OFFICE FURNITURE & BUSINESS EQUIPMENT (0.4%) *Lexmark International, Inc. ....... 71,150 4,197,850 -------------- OIL: CRUDE PRODUCERS (0.3%) Apache Corp. ....................... 52,580 2,622,690 -------------- OIL: INTEGRATED DOMESTIC (0.2%) Phillips Petroleum Co. ............. 26,450 1,593,877 -------------- OIL: INTEGRATED INTERNATIONAL (2.6%) Chevron Texaco Corp. ............... 65,650 5,882,897 Exxon Mobil Corp. .................. 399,774 15,711,118 Royal Dutch Petroleum Co. .......... 75,200 3,686,304 -------------- 25,280,319 -------------- PAPER (0.6%) International Paper Co. ............ 154,900 6,250,215 -------------- PRODUCTION TECHNOLOGY EQUIPMENT (0.5%) Millipore Corp. .................... 32,400 1,966,680 *Novellus Systems, Inc. ............ 64,850 2,558,332 -------------- 4,525,012 -------------- RADIO & TELEVISION BROADCASTERS (0.4%) *Clear Channel Communications, Inc. ............................. 78,850 4,014,253 -------------- RAILROADS (0.7%) Burlington Northern Santa Fe Corp. ............................ 105,750 3,017,047 Union Pacific Corp. ................ 75,150 4,283,550 -------------- 7,300,597 -------------- RETAIL (3.7%) *Costco Wholesale Corp. ............ 100,100 4,442,438 Home Depot, Inc. ................... 61,450 3,134,564 *Kohl's Corp. ...................... 15,225 1,072,449 Nordstrom, Inc. .................... 76,600 1,549,618 *Office Depot, Inc. ................ 123,000 2,280,420 Target Corp. ....................... 166,200 6,822,510
See Accompanying Notes to Financial Statements 60 SCHEDULE OF INVESTMENTS - --------------------------------------------------------------------------------
SHARES OR PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- *Toys "R" Us, Inc. ................. 109,250 $ 2,265,845 Wal-Mart Stores, Inc. .............. 254,150 14,626,333 -------------- 36,194,177 -------------- SERVICES: COMMERCIAL (0.8%) *Accenture Ltd. (Class A)........... 86,600 2,331,272 *Allied Waste Industries, Inc. ..... 124,350 1,748,361 Waste Management, Inc. ............. 124,200 3,963,222 -------------- 8,042,855 -------------- TIRES & RUBBER (0.4%) Goodyear Tire & Rubber Co., The..... 185,800 4,423,898 -------------- TOBACCO (0.6%) Philip Morris Companies, Inc. ...... 119,650 5,485,953 -------------- UTILITIES: CABLE TELEVISION & RADIO (0.7%) *Adelphia Communications Corp. (Class A)......................... 148,900 4,642,702 *Comcast Corp. (Class A Special).... 51,800 1,864,800 -------------- 6,507,502 -------------- UTILITIES: ELECTRICAL (0.2%) FirstEnergy Corp. .................. 59,900 2,095,302 -------------- UTILITIES: TELECOMMUNICATIONS (2.2%) AT&T Corp. ......................... 154,550 2,803,537 *AT&T Wireless Services, Inc. ...... 273,443 3,929,376 BellSouth Corp. .................... 99,700 3,803,555 SBC Communications, Inc. ........... 76,150 2,982,795 Sprint Corp. (Fon Group)............ 48,700 977,896 Verizon Communications, Inc. ....... 112,500 5,339,250 *WorldCom, Inc. .................... 97,150 1,367,872 -------------- 21,204,281 -------------- Total Common Stocks (Cost $481,026,259)................. 556,857,001 -------------- BONDS (39.3%) U.S. GOVERNMENT SECURITIES (14.6%) U.S. TREASURY NOTES & BONDS (2.4%) ++U.S. Treasury Bonds 8.875% 08/15/2017................. $12,120,000 16,096,875 U.S. Treasury Inflation Index Bonds 3.375% 01/15/2007................. 7,739,799 7,768,823 -------------- 23,865,698 -------------- U.S. AGENCY BONDS (2.3%) Federal Home Loan Bank 5.125% 01/13/2003................. 3,435,000 3,522,489 4.50% 07/07/2003.................. 8,070,000 8,270,459
PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- - ----------------------------------------------------------------------- Federal Home Loan Mortgage Corp. 5.25% 01/15/2006.................. $ 4,370,000 $ 4,464,217 Federal National Mortgage Association 7.125% 01/15/2030................. 5,385,000 5,975,681 -------------- 22,232,846 -------------- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) (3.8%) +6.50% 01/15/2032................... 9,050,000 9,089,820 +7.00% 01/15/2028 - 01/15/2032...... 25,303,976 25,822,572 8.00% 12/15/2030 - 02/15/2031....... 2,714,976 2,837,998 -------------- 37,750,390 -------------- FEDERAL HOME LOAN MORTGAGE CORP. (FHLMC) (0.8%) 6.00% 05/01/2016 - 06/01/2016....... 3,353,617 3,371,433 6.50% 05/01/2031 - 09/01/2031....... 4,616,335 4,626,433 -------------- 7,997,866 -------------- FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) (3.1%) 6.00% 03/01/2016 - 11/01/2016....... 26,743,037 26,851,680 6.50% 09/01/2031 - 11/01/2016....... 3,261,891 3,265,969 -------------- 30,117,649 -------------- FEDERAL HOUSING ADMINISTRATION (FHA) (0.3%) FHA Insured Project Pool #53-43077 9.125% 07/25/2033................. 1,568,578 1,596,028 FHA Insured Project Pool #55 7.43% 04/01/2022.................. 1,331,089 1,331,089 -------------- 2,927,117 -------------- AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS (1.9%) GNMA Gtd. Remic Pass Thru Secs Remic Tr. 2000-6 Cl. VC 7.50% 04/20/2017.................. 5,652,000 5,967,851 FNMA Gtd. Remic Pass Thru Ctf. Remic Tr. 1994-43 Cl. E 6.50% 02/25/2024.................. 349,249 348,812 Remic Tr. 1997-68 Cl. PJ 7.00% 10/18/2027.................. 3,000,000 3,025,849 Remic Tr. 2001-56 Cl. KD 6.50% 07/25/2030.................. 2,260,000 2,267,530 Remic Tr. 2001-55 Cl. PC 6.50% 10/25/2031.................. 1,590,000 1,595,118 FHLMC Multiclass Mtg. Partn. Ctfs. Gtd. Series 2235 Cl. VN 7.00% 06/15/2014.................. 3,980,000 4,174,124 Gtd. Series 2065 Cl. PB 6.25% 01/15/2024.................. 1,083,000 1,108,721 -------------- 18,488,005 -------------- Total U.S. Government Securities (Cost $140,904,250)................. 143,379,571 --------------
See Accompanying Notes to Financial Statements 61 SCHEDULE OF INVESTMENTS - --------------------------------------------------------------------------------
COLUMBIA BALANCED FUND (CONT.) DECEMBER 31, 2001 PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- CORPORATE NOTES & BONDS (17.9%) INDUSTRIAL (10.3%) Adelphia Communications Corp., Series B 7.50% 01/15/2004.................. $ 2,000,000 $ 1,960,000 Alcan, Inc. 7.25% 03/15/2031.................. 1,860,000 1,964,123 Alcoa, Inc., Series B 6.50% 06/15/2018.................. 1,100,000 1,088,461 Allied Waste North America, Inc. 10.00% 08/01/2009................. 1,000,000 1,025,000 American Home Products Corp. 6.25% 03/15/2006.................. 3,775,000 3,927,661 Anadarko Finance Co., Series B 7.50% 05/01/2031.................. 2,000,000 2,078,820 Anheuser-Busch Cos., Inc. 7.55% 10/01/2030.................. 850,000 977,730 AOL Time Warner, Inc. 7.625% 04/15/2031................. 1,700,000 1,799,093 Ball Corp. 7.75% 08/01/2006.................. 850,000 892,500 BP Amoco plc 5.90% 04/15/2009.................. 2,075,000 2,069,813 Buckeye Technologies, Inc. 8.50% 12/15/2005.................. 600,000 579,000 Burlington Northern Sante Fe Corp. 7.125% 12/15/2010................. 2,150,000 2,248,728 6.75% 07/15/2011.................. 1,000,000 1,021,700 Canadian National Railway Co. 6.45% 07/15/2006.................. 675,000 696,479 Series 1997-A2 7.195% 01/02/2016................. 1,188,720 1,192,274 Charter Communications Holdings L.L.C./Charter Communications Holdings Capital Corp. 8.25% 04/01/2007.................. 2,000,000 1,910,000 Coca-Cola Enterprises, Inc. 6.75% 01/15/2038.................. 1,045,000 1,042,576 Cott Beverages, Inc. (144A) 8.00% 12/15/2011.................. 500,000 490,000 Cox Enterprises, Inc. (144A) 8.00% 02/15/2007.................. 700,000 753,568 CSC Holdings, Inc. 7.875% 12/15/2007................. 1,250,000 1,294,112 Devon Financing Corp., ULC (144A) 6.875 09/30/2011.................. 3,100,000 3,021,322
PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- AMOUNT VALUE - ----------------------------------------------------------------------- Diageo Capital plc 6.625% 06/24/2004................. $ 4,000,000 $ 4,243,880 Dow Chemical Co. 7.375% 11/01/2029................. 1,030,000 1,123,421 Federal Express Corp. Pass Thru Trust Series 1997-1c 7.65% 01/15/2014.................. 1,942,210 1,973,130 Harrah's Operating, Inc. 7.875% 12/15/2005................. 500,000 518,750 HCA-The Healthcare Co. 6.91% 06/15/2005.................. 1,450,000 1,457,250 Heritage Media Corp. 8.75% 02/15/2006.................. 1,000,000 1,002,500 Honeywell International, Inc. 7.50% 03/01/2010.................. 2,120,000 2,290,075 Ingles Markets, Inc. (144A) 8.875% 12/01/2011................. 500,000 492,500 International Paper Co. 8.00% 07/08/2003.................. 1,700,000 1,809,803 6.75% 09/01/2011.................. 1,000,000 1,006,990 KB HOME 8.625% 12/15/2008................. 1,000,000 1,010,000 Lear Corp., Series B 7.96% 05/15/2005.................. 2,000,000 2,029,726 Lowe's Cos., Inc. 6.50% 03/15/2029.................. 2,825,000 2,737,544 Marriott International, Inc., (144A) Series E 7.00% 01/15/2008.................. 2,000,000 2,004,640 MCI Worldcom, Inc. 7.55% 04/01/2004.................. 1,400,000 1,468,334 Omnicare, Inc. 8.125% 03/15/2011................. 1,000,000 1,028,750 Park Place Entertainment Corp. 9.375% 02/15/2007................. 1,825,000 1,911,687 Pennzoil-Quaker State Co. (144A) 10.00% 11/01/2008................. 500,000 525,000 Phillips Petroleum Co. 8.50% 05/25/2005.................. 3,090,000 3,401,750 Pride International, Inc. 9.375% 05/01/2007................. 500,000 521,875 SBC Communications, Inc. 5.75% 05/02/2006.................. 3,550,000 3,633,744 Select Medical Corp. 9.50% 06/15/2009.................. 500,000 498,750 Sprint Capital Corp. (144A) 6.00% 01/15/2007.................. 3,300,000 3,280,025 Station Casinos, Inc. 9.75% 04/15/2007.................. 2,000,000 2,035,000
See Accompanying Notes to Financial Statements 62 SCHEDULE OF INVESTMENTS - --------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- 'yTCI Communications, Inc. 8.00% 08/01/2005.................. $ 1,000,000 $ 1,085,290 Teekay Shipping Corp. (144A) 8.875% 07/15/2011................. 1,000,000 1,030,000 Time Warner, Inc. 7.975% 08/15/2004................. 4,303,000 4,680,300 Toll Corp. 7.75% 09/15/2007.................. 1,000,000 982,500 Toys "R" Us, Inc. (144A) 6.875% 08/01/2006................. 1,010,000 985,669 7.625% 08/01/2011................. 1,450,000 1,417,114 Tyco International Group S.A. 6.25% 06/15/2003.................. 4,500,000 4,615,065 United Rentals, Inc. (144A), Series B 10.75% 04/15/2008................. 2,000,000 2,130,000 United Technologies Corp. 6.50% 06/01/2009.................. 1,685,000 1,743,537 7.125% 11/15/2010................. 1,660,000 1,779,603 US West Communications, Inc. 5.625% 11/15/2008................. 3,000,000 2,698,440 Verizon Global Funding Corp. 7.25% 12/01/2010.................. 2,700,000 2,887,623 Vodafone Group plc 7.75% 02/15/2010.................. 1,475,000 1,614,874 -------------- 101,688,099 -------------- FINANCIAL (3.2%) Bank of America Corp. 7.80% 02/15/2010.................. 2,950,000 3,227,241 CIT Group, Inc. 7.25% 08/15/2005.................. 2,800,000 2,955,288 7.625% 08/16/2005................. 1,245,000 1,331,303 Citigroup, Inc. 7.25% 10/01/2010.................. 2,000,000 2,145,260 Ford Motor Credit Co. 6.875% 02/01/2006................. 3,200,000 3,198,880 7.375% 10/28/2009................. 1,885,000 1,861,023 Household Finance Corp. 6.40% 06/17/2008.................. 3,690,000 3,684,465 Merrill Lynch & Co, Inc. Medium Term Notes, Series B 6.15% 01/26/2006.................. 3,530,000 3,679,672 Travelers Property Casualty Corp. 6.75% 11/15/2006.................. 2,350,000 2,497,016 US Bank N.A. 6.375% 08/01/2011................. 3,200,000 3,241,856
PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- Wachovia Corp. 4.95% 11/01/2006.................. $ 1,500,000 $ 1,473,225 Wells Fargo & Co. 7.25% 08/24/2005.................. 2,000,000 2,151,100 -------------- 31,446,329 -------------- UTILITIES (2.9%) Calpine Corp. 7.625% 04/15/2006................. 1,000,000 895,000 Coastal Corp. 6.50% 05/15/2006.................. 2,430,000 2,416,999 7.625% 09/01/2008................. 2,820,000 2,895,661 El Paso Corp. Medium Term Notes 7.80% 08/01/2031.................. 1,500,000 1,487,040 FPL Group Capital, Inc. 6.125% 05/15/2007................. 3,875,000 3,926,150 Kinder Morgan Energy Partners L.P. 8.00% 03/15/2005.................. 3,900,000 4,253,332 Pinnacle West Capital Corp. 6.40% 04/01/2006.................. 4,100,000 4,147,478 Progress Energy, Inc. 7.75% 03/01/2031.................. 2,000,000 2,139,460 Texas Eastern Transmission Corp. 7.30% 12/01/2010.................. 2,000,000 2,105,480 TXU Eastern Funding Co. 6.45% 05/15/2005.................. 4,200,000 4,252,710 -------------- 28,519,310 -------------- International (1.5%) British Columbia Province 5.375% 10/29/2008................. 2,150,000 2,142,189 Government of Canada 5.25% 11/05/2008.................. 2,300,000 2,288,523 Kingdom of Spain 7.00% 07/19/2005.................. 4,050,000 4,371,368 Quebec Province 6.50% 01/17/2006.................. 3,100,000 3,303,391 7.125% 02/09/2024................. 2,000,000 2,120,800 -------------- 14,226,271 -------------- Total Corporate Notes & Bonds (Cost $169,833,130)................. 175,880,009 -------------- OTHER SECURITIZED LOANS (6.6%) ASSET BACKED SECURITIES (2.7%) Cityscape Home Equity Loan Trust Series 1997-B Cl. A7 7.41% 05/25/2028.................. 2,757,068 2,909,064 Cityscape Home Loan Owner Trust Series 1997-4 Cl. A4 7.44% 10/25/2018.................. 4,008,804 4,177,199
See Accompanying Notes to Financial Statements 63 SCHEDULE OF INVESTMENTS - --------------------------------------------------------------------------------
COLUMBIA BALANCED FUND (CONT.) DECEMBER 31, 2001 PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- +yFirst Alliance Mortgage Trust Series 1996-1 Cl. A1 7.34% 06/20/2027.................. $ 452,537 $ 452,298 IMC Home Equity Loan Trust Series 1997-3 Cl. A6 7.52% 08/20/2028.................. 2,310,000 2,411,352 Series 1997-5 Cl. A9 7.31% 11/20/2028.................. 2,180,000 2,233,852 Mellon Residential Funding Corp. Series 2001-HEIL Cl. A4 6.615% 02/25/2021................. 5,730,000 5,877,794 Merit Securities Corp. Series 13 Cl. A4 7.88% 12/28/2033.................. 4,375,000 4,619,304 Salomon Brothers Mortgage Securities VII, Inc. Series 1998-AQ1 Cl. A5 7.15% 06/25/2028.................. 3,150,000 3,250,568 The Money Store Residential Trust Series 1997-II Cl. A4 7.385% 03/15/2029................. 831,983 848,623 -------------- 26,780,054 -------------- Collateralized Mortgage Obligations (2.8%) *Bear Stearns Mortgage Securities, Inc. Series 1996-2 Cl. A1 5.17% 01/28/2025.................. 2,903,439 2,725,603 CMC Securities Corp. IV Series 1997-2 Cl. 1A12 7.25% 11/25/2027.................. 7,235,000 7,559,454 First Nationwide Trust Series 2000-1 Cl. 2A3 8.00% 10/25/2030.................. 4,885,807 5,198,447 Headlands Mortgage Securities, Inc. Series 1997-3 Cl. 1A6 7.00% 07/25/2027.................. 2,819,841 2,833,229 PNC Mortgage Securities Corp. Series 1997-4 Cl. 2PP2 7.50% 07/25/2027.................. 2,033,061 2,068,081 Series 1999-5 Cl. 2A6 6.75% 07/25/2029.................. 1,328,050 1,363,675 *Saco I, Inc. (144A) Series 1995-1 Cl. A 7.09% 09/25/2024.................. 1,763,974 1,728,695
PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- Structured Asset Securities Corp. Series 1999-ALS2 Cl. A2 6.75% 07/25/2029.................. $ 4,476,950 $ 4,592,430 -------------- 28,069,614 -------------- COMMERCIAL MORTGAGE BACKED SECURITIES (1.1%) Commercial Capital Access One, Inc. (144A) Series 3A Cl. A2 6.615% 11/15/2028................. 6,460,000 6,605,350 Nationslink Funding Corp. Series 1999-SL Cl. A5 6.888% 11/10/2030................. 3,660,000 3,861,540 -------------- 10,466,890 -------------- Total Other Securitized Loans (Cost $63,077,306).................. 65,316,558 -------------- MUNICIPAL BONDS (0.2%) TAXABLE BONDS Chicago Illinois Tax Increment Taxable Allocation Central Loop B 6.375% 06/01/2003 (Cost $2,327,535)................. 2,250,000 2,328,008 -------------- REPURCHASE AGREEMENTS (6.0%) ++J.P. Morgan Securities, Inc. 1.78% Dated 12/31/2001, due 01/02/2002 in the amount of $44,612,898. Collateralized 102% by U.S. Treasury Strips due 02/15/2002 to 02/15/2014.......... 44,610,717 44,610,717 Merrill Lynch 1.83% Dated 12/31/2001, due 01/02/2002 in the amount of $14,000,700. Collateralized 102% by U.S. Treasury Strips due 05/15/2012 to 11/15/2026.......... 14,000,000 14,000,000 -------------- Total Repurchase Agreements (Cost $58,610,717)................ 58,610,717 -------------- TOTAL INVESTMENTS (101.9%) (Cost $915,779,197)................... 1,002,371,864 OTHER ASSETS LESS LIABILITIES (-1.9%)............................... (18,622,570) -------------- NET ASSETS (100.0%).................... $ 983,749,294 ==============
* Variable rate security -- the rate reported is the rate in effect as of December 31, 2001. + A portion of this security purchased on when-issued basis. ++ A portion of this security was segregated at the custodian to cover a when-issued security. See Accompanying Notes to Financial Statements 64 SCHEDULE OF INVESTMENTS - --------------------------------------------------------------------------------
COLUMBIA SHORT TERM BOND FUND DECEMBER 31, 2001 PRINCIPAL AMOUNT VALUE - ---------------------------------------------------------------------- U.S. GOVERNMENT SECURITIES (22.7%) U.S. TREASURY BILLS (4.0%) 1.685% 04/04/2002....................... $2,500,000 $ 2,489,235 ----------- U.S. TREASURY NOTES & BONDS (1.4%) U.S. Treasury Inflation Index Bonds 3.375% 01/15/2007..................... 852,500 855,696 ----------- U.S. AGENCY BONDS (1.2%) Federal Home Loan Bank 5.125% 01/13/2003..................... 750,000 769,103 ----------- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) (0.2%) 7.00% 04/15/2029........................ 143,656 146,619 ----------- FEDERAL HOME LOAN MORTGAGE CORP. (FHLMC) (2.7%) 6.00% 09/01/2016........................ 1,700,169 1,709,201 ----------- FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) (12.6%) 6.00% 04/01/2016 - 09/01/2026........... 3,695,637 3,710,651 +6.00% 01/15/2032....................... 380,000 371,807 7.00% 03/01/2015 - 07/01/2016........... 3,698,274 3,832,336 ----------- 7,914,794 ----------- AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS (0.6%) FNMA Gtd. Remic Pass Thru Ctf. Remic Tr. 1991-146 Cl. Z 8.00% 10/25/2006...................... 107,556 112,328 FHLMC Multiclass Mtg. Partn. Ctfs. Gtd. Series 1138 Cl. G 8.50% 09/15/2006...................... 245,672 257,111 ----------- 369,439 ----------- Total U.S. Government Securities (Cost $14,261,677)............................ 14,254,087 ----------- CORPORATE NOTES (38.9%) INDUSTRIAL (21.2%) Alcoa, Inc. 7.25% 08/01/2005...................... 750,000 803,235 American Home Products Corp. 6.25% 03/15/2006...................... 600,000 624,264 BP America, Inc. Medium Term Notes, Series 7 5.00% 12/16/2003...................... 500,000 512,047 Caterpillar Financial Services Corp. 6.875% 08/01/2004..................... 450,000 476,141 Conoco, Inc. 5.90% 04/15/2004...................... 500,000 516,515 Cox Enterprises, Inc. (144A) 8.00% 02/15/2007...................... 400,000 430,610
PRINCIPAL AMOUNT VALUE - ---------------------------------------------------------------------- Diageo Capital plc 6.625% 06/24/2004..................... $ 500,000 $ 530,485 Dow Chemical Co. 7.00% 08/15/2005...................... 750,000 804,525 Honeywell International, Inc. 5.125% 11/01/2006..................... 600,000 592,546 International Paper Co. 8.00% 07/08/2003...................... 600,000 638,754 Lowe's Cos., Inc. 7.50% 12/15/2005...................... 300,000 323,628 Marriott International, Inc., (144A) Series E 7.00% 01/15/2008...................... 250,000 250,580 MCI Communications Corp. 6.125% 04/15/2002..................... 750,000 755,843 Pepsi Bottling Holdings, Inc. (144A) 5.375% 02/17/2004..................... 750,000 776,656 Phillips Petroleum Co. 8.50% 05/25/2005...................... 500,000 550,445 Qwest Capital Funding, Inc. 6.25% 07/15/2005...................... 550,000 540,419 SBC Communications, Inc. 5.75% 05/02/2006...................... 500,000 511,795 Sprint Capital Corp. (144A) 6.00% 01/15/2007...................... 450,000 447,276 TCI Communications, Inc. 7.25% 08/01/2005...................... 400,000 416,720 Time Warner, Inc. 7.975% 08/15/2004..................... 400,000 435,073 Toys "R" Us, Inc. (144A) 6.875% 08/01/2006..................... 125,000 121,989 Tyco International Group S.A. 5.875% 11/01/2004..................... 400,000 409,028 5.80% 08/01/2006...................... 200,000 200,546 United Technologies Corp. 4.875% 11/01/2006..................... 550,000 540,127 Vodafone Group plc 7.625% 02/15/2005..................... 500,000 537,630 WellPoint Health Networks, Inc. 6.375% 06/15/2006..................... 610,000 622,670 ----------- 13,369,547 ----------- FINANCIAL (10.5%) CIT Group, Inc. 7.25% 08/15/2005...................... 300,000 316,638 7.625% 08/16/2005..................... 250,000 267,330 Citigroup, Inc. 6.75% 12/01/2005...................... 850,000 899,912 Equitable Cos., Inc. 9.00% 12/15/2004...................... 700,000 780,773 Ford Motor Credit Co. 6.875% 02/01/2006..................... 725,000 724,746
See Accompanying Notes to Financial Statements 65 SCHEDULE OF INVESTMENTS - --------------------------------------------------------------------------------
COLUMBIA SHORT TERM BOND FUND (CONT.) DECEMBER 31, 2001 PRINCIPAL AMOUNT VALUE - ---------------------------------------------------------------------- Health Care Property Investors, Inc. 6.875% 06/08/2005..................... $ 625,000 $ 628,381 Household Finance Corp. 6.40% 06/17/2008...................... 425,000 424,363 Merrill Lynch & Co., Inc. Medium Term Notes, Series B 6.15% 01/26/2006...................... 600,000 625,440 Simon Property Group L.P. 6.625% 06/15/2003..................... 500,000 513,885 Wachovia Corp. 4.95% 11/01/2006...................... 600,000 589,290 Wells Fargo & Co. 7.25% 08/24/2005...................... 750,000 806,663 ----------- 6,577,421 ----------- UTILITIES (5.2%) Coastal Corp. 6.50% 05/15/2006...................... 500,000 497,325 FPL Group Capital, Inc. 6.875% 06/01/2004..................... 500,000 522,955 7.625% 09/15/2006..................... 500,000 541,811 Kinder Morgan Energy Partners L.P. 8.00% 03/15/2005...................... 550,000 599,829 Pinnacle West Capital Corp. 6.40% 04/01/2006...................... 600,000 606,948 TXU Eastern Funding Co. 6.45% 05/15/2005...................... 500,000 506,275 ----------- 3,275,143 ----------- INTERNATIONAL (2.0%) Kingdom of Spain 7.00% 07/19/2005...................... 600,000 647,610 Quebec Province 6.50% 01/17/2006...................... 600,000 639,366 ----------- 1,286,976 ----------- Total Corporate Notes (Cost $24,158,200)...................... 24,509,087 ----------- OTHER SECURITIZED LOANS (30.5%) ASSET BACKED SECURITIES (18.9%) Americredit Automobile Receivables Trust Series 2000-1 Cl. B 7.16% 09/05/2005...................... 480,000 507,885 Crown Home Equity Loan Trust Series 1996-1 Cl. A5 7.30% 04/25/2027...................... 500,000 520,990
PRINCIPAL AMOUNT VALUE - ---------------------------------------------------------------------- IMC Home Equity Loan Trust Series 1997-3 Cl. A6 7.52% 08/20/2028...................... $1,300,000 $ 1,357,038 Series 1997-3 Cl. A7 7.08% 08/20/2028...................... 701,848 735,234 Mellon Bank Home Equity Installment Loan Trust Series 1998-1 Cl. A3 6.32% 06/25/2012...................... 849,231 865,890 Mellon Residential Funding Corporation Series 2001-HEIL Cl. A4 6.615% 02/25/2021..................... 1,200,000 1,230,952 Merit Securities Corp. Series 13 Cl. A4 7.88% 12/28/2033...................... 1,430,000 1,509,852 New Century Home Equity Loan Trust Series 1997-NC6 Cl. A7 7.19% 01/25/2029...................... 1,155,000 1,206,516 *SLM Student Loan Trust Series 1997-2 Cl. A2 2.35% 01/25/2010...................... 990,000 984,679 Series 1997-4 Cl. A2 2.50% 10/25/2010...................... 1,650,000 1,661,299 The Money Store Home Equity Loan Trust Series 1996-C Cl. A7 7.91% 12/15/2027...................... 1,000,000 1,045,376 UCFC Home Equity Loan Trust Series 1996-B1 Cl. A7 8.20% 09/15/2027...................... 240,000 251,623 ----------- 11,877,334 ----------- COLLATERALIZED MORTGAGE OBLIGATIONS (10.2%) OCWEN Residential MBS Corp. (144A), Series 1998-R1 Cl. A1 7.00% 10/25/2040...................... 839,843 865,953 PNC Mortgage Securities Corp. Series 1998-12 Cl. 4A5 6.475% 01/25/2029..................... 595,634 609,842 Series 1999-5 Cl. 2A6 6.75% 07/25/2029...................... 913,981 938,499 *PNC Mortgage Securities Corp. (144A) Series 1996-PR1 Cl. A 6.32% 04/28/2027...................... 433,750 420,737 Residential Asset Securitization Trust Series 1999-A1 Cl. A1 6.75% 03/25/2029...................... 535,604 547,760 Residential Funding Mortgage Securities I, Inc. Series 1999-S25 Cl. A1 6.75% 12/25/2014...................... 279,809 288,065
See Accompanying Notes to Financial Statements 66 SCHEDULE OF INVESTMENTS - --------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE - ---------------------------------------------------------------------- Saco I, Inc. (144A) Series 1997-2 Cl. 1A5 7.00% 08/25/2036...................... $ 750,000 $ 765,000 Structured Asset Securities Corp. Series 1999-ALS2 Cl. A2 6.75% 07/25/2029...................... 757,068 776,597 Washington Mutual Mortgage Securities Corp. Series 2001-MS10 Cl. 3A1 6.50% 09/25/2031...................... 1,190,111 1,206,475 ----------- 6,418,928 ----------- COMMERCIAL MORTGAGE BACKED SECURITIES (1.4%) Merrill Lynch Mortgage Investors, Inc. Series 1996-C1 Cl. A3 7.42% 04/25/2028...................... 825,000 873,909 ----------- Total Other Securitized Loans (Cost $18,857,287)...................... 19,170,171 ----------- REPURCHASE AGREEMENTS (13.6%) ++J.P. Morgan Securities, Inc. 1.78% Dated 12/31/2001, due 01/02/2002 in the amount of $6,073,720. Collateralized 102% by U.S. Treasury Strips due 02/15/2002 to 02/15/2014.............. 6,073,423 6,073,423 Merrill Lynch 1.83% Dated 12/31/2001, due 01/02/2002 in the amount of $2,500,125. Collateralized 102% by U.S. Treasury Strips due 05/15/2012 to 11/15/2026.............. 2,500,000 2,500,000 ----------- Total Repurchase Agreements (Cost $8,573,423)..................... 8,573,423 ----------- TOTAL INVESTMENTS (105.7%) (Cost $65,850,587)........................ 66,506,768 OTHER ASSETS LESS LIABILITIES (-5.7%)...... (3,577,163) ----------- NET ASSETS (100.0%)........................ $62,929,605 ===========
* Variable rate security - the rate reported is the rate in effect as of December 31, 2001. + Security purchased on when-issued basis. ++ A portion of this security was segregated at the custodian to cover a when-issued security.
COLUMBIA FIXED INCOME SECURITIES FUND DECEMBER 31, 2001 PRINCIPAL AMOUNT VALUE - ---------------------------------------------------------------------- U.S. GOVERNMENT SECURITIES (38.0%) U.S. TREASURY NOTES & BONDS (7.9%) U.S. Treasury Bonds ++8.875% 08/15/2017................. $20,935,000 $ 27,804,297 6.25% 08/15/2023.................... 1,085,000 1,149,083 U.S. Treasury Inflation Index Bonds 3.375% 01/15/2007................... 7,992,184 8,022,154 ------------ 36,975,534 ------------ U.S. AGENCY BONDS (3.0%) Federal Home Loan Bank 4.50% 07/07/2003.................... 5,000,000 5,124,200 Federal Home Loan Mortgage Corp. 5.25% 01/15/2006.................... 1,815,000 1,854,131 Federal National Mortgage Association 7.125% 06/15/2010................... 2,715,000 2,977,160 7.125% 01/15/2030................... 3,875,000 4,300,049 ------------ 14,255,540 ------------ GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) (11.6%) 6.00% 08/15/2031...................... 4,184,853 4,111,618 +6.50% 01/15/2032..................... 4,250,000 4,268,700 +7.00% 02/15/2031 - 01/15/2032........ 41,155,135 41,999,750 8.00% 10/15/2030 - 05/15/2031......... 3,318,894 3,469,282 ------------ 53,849,350 ------------ FEDERAL HOME LOAN MORTGAGE CORP. (FHLMC) (3.7%) 6.50% 07/01/2031 - 09/01/2031......... 4,240,792 4,250,069 6.00% 04/01/2016...................... 12,856,711 12,925,012 ------------ 17,175,081 ------------ FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) (4.7%) +6.00% 03/01/2031 - 01/15/2032........ 1,957,069 1,915,013 6.00% 07/01/2016 - 12/01/2016......... 16,870,764 16,939,302 6.50% 11/01/2031...................... 2,958,565 2,962,263 ------------ 21,816,578 ------------ FEDERAL HOUSING ADMINISTRATION (FHA) (0.5%) FHA Insured Project Pool #051-11078 8.35% 04/01/2030.................... 2,155,871 2,285,223 ------------ AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS (6.6%) GNMA Gtd. Remic Pass Thru Secs. Remic Tr. 2000-15 Cl. Pd 7.50% 05/20/2026.................... 8,422,500 8,756,705 FNMA Gtd. Remic Pass Thru Ctf. Remic Tr. 1996-W2 Cl. A7 7.80% 06/25/2026.................... 1,000,000 1,077,380 Remic Tr. 2001-56 Cl. KD 6.50% 07/25/2030.................... 1,920,000 1,926,397
See Accompanying Notes to Financial Statements 67 SCHEDULE OF INVESTMENTS - --------------------------------------------------------------------------------
COLUMBIA FIXED INCOME SECURITIES FUND (CONT.) DECEMBER 31, 2001 PRINCIPAL AMOUNT VALUE - ---------------------------------------------------------------------- Remic Tr. 2001-55 Cl. PC 6.50% 10/25/2031.................... $ 2,998,000 $ 3,007,649 FHLMC GNMA Multiclass Mtg. Partn. Ctfs. Gtd. Series 24 Cl. J 6.25% 11/25/2023.................... 2,310,000 2,319,552 FHLMC Multiclass Mtg. Partn. Ctfs. Gtd. Series 2235 Cl. VN 7.00% 06/15/2014.................... 4,680,000 4,908,267 Gtd. Series 1558 Cl. C 6.50% 07/15/2023.................... 2,991,000 3,076,637 Gtd. Series 2065 Cl. PB 6.25% 01/15/2024.................... 1,050,000 1,074,938 Gtd. Series 2085 Cl. PD 6.25% 11/15/2026.................... 2,471,000 2,449,070 Gtd. Series 2113 Cl. MU 6.50% 08/15/2027.................... 2,160,000 2,166,188 ------------ 30,762,783 ------------ Total U.S. Government Securities (Cost $174,251,332)......................... 177,120,089 ------------ CORPORATE NOTES & BONDS (42.2%) INDUSTRIAL (25.1%) Adelphia Communications Corp., Series B 7.50% 01/15/2004.................... 2,000,000 1,960,000 Alcan, Inc. 7.25% 03/15/2031.................... 2,285,000 2,412,914 Alcoa, Inc. 6.75% 01/15/2028.................... 950,000 955,196 Series B 6.50% 06/15/2018.................... 975,000 964,772 Allied Waste North America, Inc., Series B 10.00% 08/01/2009................... 1,000,000 1,025,000 American Home Products Corp. 6.25% 03/15/2006.................... 4,100,000 4,265,804 AmeriSourceBergen Corp. (144A) 8.125% 09/01/2008................... 500,000 515,000 Anadarko Finance Co., Series B 7.50% 05/01/2031.................... 3,185,000 3,310,521 Anheuser-Busch Cos., Inc. 5.75% 04/01/2010.................... 3,800,000 3,777,238 AOL Time Warner, Inc. 7.625% 04/15/2031................... 1,925,000 2,037,208 Ball Corp. 7.75% 08/01/2006.................... 850,000 892,500
PRINCIPAL AMOUNT VALUE - ---------------------------------------------------------------------- BP Amoco plc 5.90% 04/15/2009.................... $ 1,800,000 $ 1,795,500 Buckeye Technologies, Inc. 8.50% 12/15/2005.................... 500,000 482,500 Burlington Northern Sante Fe Corp. 7.125% 12/15/2010................... 1,900,000 1,987,248 6.75% 07/15/2011.................... 2,000,000 2,043,400 Charter Communications Holdings L.L.C./Charter Communications Holdings Capital Corp. 8.25% 04/01/2007.................... 2,000,000 1,910,000 Coca-Cola Enterprises, Inc. 6.75% 01/15/2038.................... 1,000,000 997,680 Cott Beverages, Inc. (144A) 8.00% 12/15/2011.................... 500,000 490,000 Cox Enterprises, Inc. (144A) 8.00% 02/15/2007.................... 400,000 430,610 CSC Holdings, Inc. 7.875% 12/15/2007................... 3,000,000 3,105,870 Devon Financing Corp., U.L.C. (144A) 6.875% 09/30/2011................... 3,300,000 3,216,246 Diageo Capital plc 6.625% 06/24/2004................... 2,700,000 2,864,619 Dow Chemical Co. 7.375% 11/01/2029................... 925,000 1,008,898 Extended Stay America, Inc. 9.875% 06/15/2011................... 500,000 518,750 Federal Express Corp. Pass Thru Trust Series 1997-1C 7.65% 01/15/2014.................... 2,030,492 2,062,818 Harrahs Operating Co., Inc. 7.875% 12/15/2005................... 500,000 518,750 HCA-The Healthcare Co. 6.91% 06/15/2005.................... 500,000 502,500 Heritage Media Corp. 8.75% 02/15/2006.................... 1,750,000 1,754,375 Honeywell International, Inc. 7.50% 03/01/2010.................... 4,200,000 4,536,941 Ingles Markets, Inc. (144A) 8.875% 12/01/2011................... 500,000 492,500 International Paper Co. 8.00% 07/08/2003.................... 3,925,000 4,178,516 6.75% 09/01/2011.................... 1,095,000 1,102,654 KB HOME 8.625% 12/15/2008................... 1,000,000 1,010,000 Lear Corp., Series B 7.96% 05/15/2005.................... 1,500,000 1,522,295 Lowe's Cos., Inc. 6.50% 03/15/2029.................... 2,200,000 2,131,892
See Accompanying Notes to Financial Statements 68 SCHEDULE OF INVESTMENTS - --------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE - ---------------------------------------------------------------------- MCI Communications Corp. 6.125% 04/15/2002................... $ 4,755,000 $ 4,792,041 Park Place Entertainment Corp. 9.375% 02/15/2007................... 2,725,000 2,854,438 Pepsi Bottling Holdings, Inc. (144A) 5.625% 02/17/2009................... 5,000,000 4,938,750 Phillips Petroleum Co. 8.50% 05/25/2005.................... 3,625,000 3,990,726 Pride International, Inc. 9.375% 05/01/2007................... 500,000 521,875 SBC Communications, Inc. 5.75% 05/02/2006.................... 3,200,000 3,275,488 Select Medical Corp. 9.50% 06/15/2009.................... 500,000 498,750 Sprint Capital Corp. (144A) 6.00% 01/15/2007.................... 3,500,000 3,478,815 Station Casinos, Inc. 9.75% 04/15/2007.................... 2,000,000 2,035,000 TCI Communications, Inc. 7.25% 08/01/2005.................... 2,590,000 2,698,262 Teekay Shipping Corp. 8.875% 07/15/2011................... 1,000,000 1,030,000 Time Warner, Inc. 7.975% 08/15/2004................... 3,875,000 4,214,772 Toll Corp. 7.75% 09/15/2007.................... 1,000,000 982,500 Toys "R" Us, Inc. (144A) 6.875% 08/01/2006................... 955,000 931,994 7.625% 08/01/2011................... 1,400,000 1,368,248 Tricon Global Restaurants, Inc. 8.50% 04/15/2006.................... 1,250,000 1,290,625 Tyco International Group S.A. 5.875% 11/01/2004................... 3,075,000 3,144,403 5.80% 08/01/2006.................... 1,000,000 1,002,730 United Rentals, Inc., (144A) Series B 10.75% 04/15/2008................... 2,000,000 2,130,000 United Technologies Corp. 7.125% 11/15/2010................... 3,000,000 3,216,150 US West Communications, Inc. 5.625% 11/15/2008................... 3,400,000 3,058,232 Verizon Global Funding Corp. 7.25% 12/01/2010.................... 2,400,000 2,566,776 ------------ 116,801,290 ------------ FINANCIAL (8.3%) Bank of America Corp. 7.80% 02/15/2010.................... 2,700,000 2,953,746 CIT Group, Inc. 7.25% 08/15/2005.................... 2,400,000 2,533,104 Citigroup, Inc. 7.25% 10/01/2010.................... 3,500,000 3,754,205
PRINCIPAL AMOUNT VALUE - ---------------------------------------------------------------------- Equitable Cos., Inc. 9.00% 12/15/2004.................... $ 980,000 $ 1,093,082 Ford Motor Credit Co. 6.875% 02/01/2006................... 5,700,000 5,698,005 Health Care REIT, Inc. 7.50% 08/15/2007.................... 500,000 500,938 Household Finance Corp. 6.40% 06/17/2008.................... 4,100,000 4,093,850 Merrill Lynch & Co, Inc. Medium Term Notes, Series B 6.15% 01/26/2006.................... 3,700,000 3,856,880 Simon Property Group L.P. 6.625% 06/15/2003................... 2,050,000 2,106,929 Simon Property Group, Inc. 6.75% 02/09/2004.................... 1,035,000 1,057,553 US Bank N.A. 6.375% 08/01/2011................... 2,450,000 2,482,046 Wachovia Corp. 4.95% 11/01/2006.................... 4,330,000 4,252,709 Wells Fargo Financial, Inc. 7.60% 05/03/2005.................... 3,800,000 4,147,358 ------------ 38,530,405 ------------ UTILITIES (5.6%) AES Corp. 10.25% 07/15/2006................... 1,000,000 900,000 Calpine Corp. 7.625% 04/15/2006................... 450,000 402,750 8.75% 07/15/2007.................... 1,000,000 905,000 Coastal Corp. 7.625% 09/01/2008................... 2,675,000 2,746,770 El Paso Corp. Medium Term Notes 7.80% 08/01/2031.................... 1,600,000 1,586,176 FPL Group Capital, Inc. 6.125% 05/15/2007................... 4,200,000 4,255,440 Kinder Morgan Energy Partners L.P. 6.75% 3/15/2011..................... 3,250,000 3,262,578 Pinnacle West Capital Corp. 6.40% 04/01/2006.................... 3,550,000 3,591,109 Progress Energy, Inc. 7.75% 03/01/2031.................... 2,115,000 2,262,479 Texas Eastern Transmission, Corp. 7.30% 12/01/2010.................... 1,800,000 1,894,932 TXU Eastern Funding Co. 6.45% 05/15/2005.................... 4,200,000 4,252,710 ------------ 26,059,944 ------------ INTERNATIONAL (3.2%) British Columbia Province 5.375% 10/29/2008................... 1,900,000 1,893,097
See Accompanying Notes to Financial Statements 69 SCHEDULE OF INVESTMENTS - --------------------------------------------------------------------------------
COLUMBIA FIXED INCOME SECURITIES FUND (CONT.) DECEMBER 31, 2001 PRINCIPAL AMOUNT VALUE - ---------------------------------------------------------------------- Government of Canada 5.25% 11/05/2008.................... $ 5,000,000 $ 4,975,050 Kingdom of Spain 7.00% 07/19/2005.................... 3,700,000 3,993,595 Quebec Province 7.00% 01/30/2007.................... 2,490,000 2,683,672 7.125% 02/09/2024................... 1,090,000 1,155,836 ------------ 14,701,250 ------------ Total Corporate Notes & Bonds (Cost $191,307,354)..................... 196,092,889 ------------ OTHER SECURITIZED LOANS (14.9%) ASSET BACKED SECURITIES (7.9%) Cityscape Home Loan Owner Trust Series 1997-4 Cl. A4 7.44% 10/25/2018.................... 2,725,986 2,840,495 ContiMortgage Home Equity Loan Trust Series 1999-3 Cl. A6 7.68% 12/25/2029.................... 2,700,000 2,812,958 IMC Home Equity Loan Trust Series 1995-3 Cl. A5 7.50% 04/25/2026.................... 1,000,000 1,035,478 Series 1997-3 Cl. A6 7.52% 08/20/2028.................... 4,660,000 4,864,459 Series 1997-5 Cl. A9 7.31% 11/20/2028.................... 5,440,000 5,574,383 Mellon Residential Funding Corporation Series 2001-HEIL Cl. A4 6.615% 02/25/2021................... 8,020,000 8,226,861 New Century Home Equity Loan Trust Series 1999-NCA Cl. A7 7.32% 07/25/2029.................... 4,084,291 4,269,304 Oakwood Mortgage Investors, Inc. Series 2000-D Cl. A4 7.40% 07/15/2030.................... 5,300,000 5,405,027 Salomon Brothers Mortgage Securities VII, Inc. Series 1998-AQ1 Cl. A5 7.15% 06/25/2028.................... 1,860,000 1,919,383 ------------ 36,948,348 ------------ COLLATERALIZED MORTGAGE OBLIGATIONS (5.6%) *Bear Stearns Mortgage Securities, Inc. Series 1996-2 Cl 5.17% 01/28/2025.................... 2,794,264 2,623,115
PRINCIPAL AMOUNT VALUE - ---------------------------------------------------------------------- CMC Securities Corp. IV Series 1997-2 Cl. 1A12 7.25% 11/25/2027.................... $ 3,950,000 $ 4,127,138 Credit Suisse First Boston Mortgage Securities Corp. Series 2001-11 Cl. 1A3 7.00% 06/25/2031.................... 2,676,164 2,717,966 *DLJ Mortgage Acceptance Corp. (144A) Series 1999-B Cl. A1 6.54% 08/28/2029.................... 2,925,516 2,888,420 PNC Mortgage Securities Corp. Series 1997-4 Cl. 2PP2 7.50% 07/25/2027.................... 2,288,118 2,327,530 Series 1998-12 Cl. 4A4 6.50% 01/25/2029.................... 2,713,442 2,779,961 Series 1999-5 Cl. 2A6 6.75% 07/25/2029.................... 4,501,232 4,621,978 Structured Asset Securities Corp. Series 1999-ALS2 Cl. A2 6.75% 07/25/2029.................... 3,990,263 4,093,190 ------------ 26,179,298 ------------ COMMERCIAL MORTGAGE BACKED SECURITIES (1.4%) Commercial Capital Access One, Inc. (144A), Series 3A Cl. A2 6.615% 11/15/2028................... 6,450,000 6,595,125 ------------ Total Other Securitized Loans (Cost $67,899,083)............................ 69,722,771 ------------ REPURCHASE AGREEMENTS (8.0%) J.P. Morgan Securities, Inc. 1.78% Dated 12/31/2001, due 01/02/2002 in the amount of $22,335,842. Collateralized 102% by U.S. Treasury Strips due 02/15/2002 to 02/15/2014....................... 22,334,750 22,334,750 ++Merrill Lynch 1.83% Dated 12/31/2001, due 01/02/2002 in the amount of $15,000,750. Collateralized 102% by U.S. Treasury Strips due 05/15/2012 to 11/15/2026....................... 15,000,000 15,000,000 ------------ Total Repurchase Agreements (Cost $37,334,750)...................... 37,334,750 ------------
See Accompanying Notes to Financial Statements 70 SCHEDULE OF INVESTMENTS - --------------------------------------------------------------------------------
VALUE - ---------------------------------------------------------------------- TOTAL INVESTMENTS (103.1%) (Cost $470,792,519)..................... $480,270,499 OTHER ASSETS LESS LIABILITIES (-3.1%).... (14,527,000) ------------ NET ASSETS (100.0%)...................... $465,743,499 ============
* Variable rate security - the rate reported is the rate in effect as of December 31, 2001. + A portion of this security purchased on when-issued basis. ++ A portion of this security was segregated at the custodian to cover a when-issued security.
COLUMBIA NATIONAL MUNICIPAL BOND FUND DECEMBER 31, 2001 PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- MUNICIPAL BONDS (94.7%) ALASKA (3.5%) Alaska Municipal Bond Bank Authority Series C (Insured Revenue) 5.50% 09/15/2016........................ $100,000 $ 103,716 Palmer Alaska Valley Hospital Association (Insured Revenue) 5.35% 12/01/2012........................ 125,000 127,501 Alaska Industrial Development & Export Authority Snettisham Hydroelectric Series 1 Unrefunded Balance (Insured Revenue) (AMT) 5.50% 01/01/2008........................ 95,000 100,795 Alaska Industrial Development & Export Authority Snettisham Hydroelectric Series 1 (Pre-Refunded) (AMT) 5.50% 01/01/2008........................ 5,000 5,325 Alaska State Housing Finance Corp. Coll. First Series Veterans Mtg. A2 (Insured General Obligation) (AMT) 6.00% 06/01/2015........................ 140,000 144,886 ----------- 482,223 ----------- ARIZONA (0.8%) Sedona Arizona Certificates of Participation 5.75% 07/01/2007........................ 100,000 106,197 ----------- COLORADO (0.6%) Colorado Housing Financial Authority Single Family PG Sub B (Revenue) 4.875% 04/01/2007....................... 85,000 87,588 -----------
PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- GEORGIA (1.1%) Georgia Municipal Electric Power Revenue Series B (Revenue) 5.50% 01/01/2018........................ $150,000 $ 150,357 ----------- HAWAII (0.8%) Hawaii State Harbor Capital Improvement (Insured Revenue) (AMT) 6.20% 07/01/2008........................ 100,000 107,649 ----------- IDAHO (1.0%) Idaho Health Facilities Authority Bingham Memorial Hospital Project (Revenue) 5.85% 03/01/2019........................ 100,000 89,366 Idaho Student Loan Fund Marketing Association, Inc. Series C (Revenue) (AMT) 5.60% 04/01/2007.................. 45,000 45,800 ----------- 135,166 ----------- ILLINOIS (5.1%) Broadview Illinois Tax Increment Revenue 4.90% 07/01/2006........................ 75,000 75,112 Chicago Illinois Park District Aquarium & Museum (Insured General Obligation) 5.80% 01/01/2018........................ 150,000 155,041 Madison & St. Clair Counties Illinois School District #010 Collinsville School Building (Insured General Obligation) 5.50% 02/01/2012........................ 250,000 267,560 Regional Transportation Authority Illinois Series A (Insured Revenue) 6.40% 06/01/2012........................ 100,000 113,826 Will County Illinois Forest Preservation District Series B (Insured General Obligation) 0.00% 12/01/2011........................ 150,000 92,393 ----------- 703,932 ----------- INDIANA (0.7%) Indiana Transportation Financial Authority Airport Facilities Lease Series A (Revenue) 5.50% 11/01/2017........................ 100,000 99,033 ----------- IOWA (1.0%) Iowa Finance Authority Single Family Mortgage Series A (Insured Revenue) 5.80% 07/01/2016........................ 140,000 143,634 ----------- KENTUCKY (0.5%) Louisville & Jefferson County Kentucky Visitors & Convention Commission Capital Appreciation Series BBB (Insured Revenue) 0.00% 12/01/2008........................ 100,000 72,001 -----------
See Accompanying Notes to Financial Statements 71 SCHEDULE OF INVESTMENTS - --------------------------------------------------------------------------------
COLUMBIA NATIONAL MUNICIPAL BOND FUND (CONT.) DECEMBER 31, 2001 PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- LOUISIANA (1.8%) East Baton Rouge Parish Louisiana Sales & Use Tax Public Improvement Series ST (Insured Revenue) 5.00% 02/01/2015........................ $250,000 $ 250,732 ----------- MAINE (0.8%) Regional Waste System Industry Maine Solid Waste Resource Recovery Series Q (Revenue) (AMT) 5.50% 07/01/2004........................ 100,000 105,098 ----------- MARYLAND (0.7%) Maryland State Economic Development Corp. Student Housing Collegiate Housing Towson Series A (Revenue) 5.75% 06/01/2029........................ 100,000 93,226 ----------- MICHIGAN (4.7%) Detroit Michigan City School District Refunding Series C (Insured General Obligation) 5.25% 05/01/2012........................ 175,000 182,718 Lansing Michigan Board Water & Light Water Supply Steam & Electric Utility System Series A (Revenue) 5.00% 07/01/2015........................ 260,000 260,031 Michigan State Hospital Finance Authority Ascension Health Credit Series A (Insured Revenue) 6.00% 11/15/2019........................ 100,000 103,055 Michigan State Hospital Finance Authority Ascension Health Credit Series A (Revenue) 5.375% 11/15/2033....................... 100,000 103,740 ----------- 649,544 ----------- MISSISSIPPI (2.7%) Jones County Mississippi Hospital Refunding South Central Regional Medical Center (Revenue) 4.90% 12/01/2004........................ 100,000 101,647 Mississippi Development Bank Special Obligation Natchez Convention Center Project (Insured Revenue) 6.50% 07/01/2013........................ 230,000 264,159 ----------- 365,806 -----------
PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- MISSOURI (1.6%) Missouri State Highways & Transit Commission State Road Revenues Series A (Revenue) 5.625% 02/01/2012....................... $200,000 $ 214,966 ----------- MONTANA (1.5%) Whitefish Montana Tax Increment Urban Renewal (Revenue) 6.625% 07/15/2020....................... 200,000 205,194 ----------- NEBRASKA (0.7%) American Public Energy Agency Nebraska Gas Supply Public Gas Agency Project Series A (Insured Revenue) 5.25% 06/01/2011........................ 100,000 101,353 ----------- NEVADA (1.5%) Clark County Nevada Passenger Facility Charge Las Vegas McCarran International Airport B (Insured Revenue) (AMT) 6.25% 07/01/2011........................ 100,000 103,585 Clark County Nevada School District Comp Interest Series B (Insured General Obligation) 0.00% 06/01/2003........................ 100,000 96,213 ----------- 199,798 ----------- NEW YORK (1.9%) New York City, New York Series A (General Obligation) 6.00% 05/15/2021........................ 250,000 263,155 ----------- OHIO (0.9%) Oak Hills Ohio Local School District (Insured General Obligation) 7.20% 12/01/2009........................ 100,000 118,034 ----------- OKLAHOMA (1.6%) Okmulgee County Oklahoma 1st Mortgage (Insured Revenue) 6.00% 03/01/2015........................ 200,000 213,946 ----------- OREGON (22.0%) Bend Municipal Airport PJ Series B (AMT) (Revenue) 5.375% 06/01/2013....................... 100,000 102,604 Benton County Oregon Hospital Facilities Authority Refunding Samaritan Health Services Project (Revenue) 4.20% 10/01/2005........................ 40,000 40,537 4.60% 10/01/2009........................ 40,000 39,794 Clackamas County Oregon Limited Tax Assessment 6.25% 05/01/2015........................ 200,000 200,712
See Accompanying Notes to Financial Statements 72 SCHEDULE OF INVESTMENTS - --------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- Clackamas County Hospital Facility Authority Refunding Odd Fellows Home Series A (Revenue) 5.875% 09/15/2021....................... $ 50,000 $ 45,648 Damascus Oregon Water District Certificates of Participation 5.25% 03/01/2019........................ 100,000 96,360 Eugene Oregon Airport (Revenue) (AMT) 5.50% 05/01/2003........................ 100,000 102,877 Eugene Oregon Trojan Nuclear Project (Revenue) 5.90% 09/01/2009........................ 35,000 35,427 Hillsboro Oregon Hospital Facility Authority Refunding Tuality Healthcare (Revenue) 5.25% 10/01/2004........................ 150,000 152,938 Tuality Healthcare (Revenue) 5.75% 10/01/2012........................ 25,000 24,945 Klamath Community College, Oregon Service District (Revenue) 4.70% 04/01/2010........................ 55,000 55,129 4.80% 04/01/2011........................ 25,000 25,058 Lebanon Urban Renewal Agency (Revenue) 5.625% 06/01/2019....................... 100,000 98,074 Linn Benton Community College (Insured General Obligation) 0.00% 06/15/2015........................ 240,000 118,786 Oregon Health Sciences University Capital Appreciation Series A (Insured Revenue) 0.00% 07/01/2016........................ 370,000 171,447 Oregon School Boards Association Flexfund Financing Program Series E 5.50% 06/01/2005........................ 100,000 100,794 Oregon State Veterans Welfare Series 75 (General Obligation) 5.875% 10/01/2018....................... 30,000 30,797 Oregon State Housing & Community Services Department Single Family Mortgage Program Series B (Revenue) 6.00% 07/01/2012........................ 80,000 83,878 Port of St. Helens Pollution Control Portland General Electric Co. Series B (Revenue) 4.80% 06/01/2010........................ 105,000 91,210 Port Umpqua Pollution Control Refunding International Paper Co. PJS A (Revenue) 5.05% 06/01/2009........................ 135,000 136,488 Portland Oregon Housing Authority Pearl Court Apartments (Revenue) (AMT) 5.55% 01/01/2003........................ 100,000 100,506
PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- Redmond Oregon Refunding City of Redmond Airport Improvement Project (General Obligation) 4.50% 05/01/2007........................ $ 50,000 $ 50,740 Redmond Urban Renewal Agency Downtown Area B (Revenue) 5.65% 06/01/2013........................ 100,000 101,072 Roseburg Oregon Urban Sanitation Authority (General Obligation) 5.40% 09/01/2002........................ 100,000 101,971 Salem Oregon Educational Facilities Refunding Willamette University Projects (Revenue) 6.00% 04/01/2010........................ 100,000 104,148 Willamette University Projects (Revenue) 6.10% 06/01/2016........................ 120,000 124,346 Salem Hospital Facility Authority Capital Manor, Inc. (Revenue) 7.50% 12/01/2024........................ 150,000 155,067 Sunriver Oregon Library County Service District (General Obligation) 5.75% 06/01/2004........................ 20,000 21,235 Washington County Housing Authority Multi Family Tualatin Meadows (AMT) (Insured Revenue) 5.90% 11/01/2018........................ 100,000 103,341 Affordable Housing Pool Series A (Revenue) 6.00% 07/01/2020........................ 100,000 96,327 Washington & Clackamas Counties Oregon School District #23J Tigard (General Obligation) 0.00% 06/15/2021........................ 450,000 152,582 West Linn Oregon Water System (Revenue) 6.00% 10/01/2020........................ 165,000 164,408 ----------- 3,029,246 ----------- SOUTH CAROLINA (0.8%) Piedmont Municipal Power Agency South Carolina Electric Unrefunded Balance Series A (Insured Revenue) 6.125% 01/01/2007....................... 100,000 109,262 ----------- SOUTH DAKOTA (1.0%) South Dakota State Building Authority Lease Capital Appreciation Series A (Insured Revenue) 0.00% 12/01/2013........................ 250,000 135,978 -----------
See Accompanying Notes to Financial Statements 73 SCHEDULE OF INVESTMENTS - --------------------------------------------------------------------------------
COLUMBIA NATIONAL MUNICIPAL BOND FUND (CONT.) DECEMBER 31, 2001 PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- TENNESSEE (6.0%) Knoxville Tennessee Gas System Series J (Revenue) 5.00% 03/01/2015........................ $250,000 $ 249,670 Lawrenceburg Tennessee Public Building Authority Electric System Public Works, Series C (Insured General Obligation) 5.50% 07/01/2016........................ 295,000 305,219 Rhea County Tennessee (Insured General Obligation) 5.00% 04/01/2015........................ 275,000 274,634 ----------- 829,523 ----------- TEXAS (14.8%) Amarillo Texas Health Facilities Corp. Baptist St. Anthonys Hospital Corp. (Insured Revenue) 5.50% 01/01/2013........................ 100,000 104,667 Arlington Texas Independent School District Capital Appreciation Refunding (Insured General Obligation) 0.00% 02/15/2007........................ 150,000 119,881 Cleburne Texas Capital Appreciation Certificates Obligation (Insured General Obligation) 0.00% 02/15/2017........................ 450,000 193,284 Grand Prairie Texas Sales Tax Series A (Insured Revenue) 5.00% 02/15/2015........................ 310,000 308,416 Harris County Texas Health Facilities de Teco Project Series B (Insured Revenue) 5.70% 02/15/2015........................ 150,000 156,333 Laredo Texas Independent School District (Insured General Obligation) 6.20% 08/01/2010........................ 100,000 112,306 Laredo Texas Sports Venue Sales Tax (Insured Revenue) 5.75% 03/15/2013........................ 200,000 211,556 Lubbock Texas Health Facility Development St. Josephs Health System (Revenue) 5.25% 07/01/2012........................ 150,000 151,572 Magnolia Texas Independent School District (Insured General Obligation) 5.25% 08/15/2017........................ 280,000 280,893
PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- North Texas Municipal Water District Texas Water System Revenue (Insured Revenue) 5.00% 09/01/2014........................ $250,000 $ 250,813 West Harris County Texas Municipal Utility District #7 Capital Appreciation Refunding (Insured General Obligation) 0.00% 03/01/2009........................ 225,000 157,606 ----------- 2,047,327 ----------- WASHINGTON (13.9%) Clark County Washington (General Obligation) 5.00% 12/01/2016........................ 250,000 247,087 Grant County Washington Public Utilities District #002 Wanapum Hydro Electric Refunding Second Series D (Insured Revenue) 5.20% 01/01/2023........................ 250,000 242,535 Jefferson County Washington Public Utility District #1 Water & Sewer (Revenue) 5.25% 05/01/2016........................ 50,000 48,802 5.25% 05/01/2017........................ 50,000 48,298 King County Washington Public Hospital District #4 Snoqualmie Valley Hospital (General Obligation) 7.00% 12/01/2011........................ 150,000 154,523 King County Washington School District #415 Kent Series B (General Obligation) 6.00% 12/01/2008........................ 100,000 110,001 Pierce County Washington Housing Authority (Revenue) 5.40% 12/01/2013........................ 100,000 94,534 Port of Grays Harbor Washington (Revenue) (AMT) 6.375% 12/01/2014....................... 150,000 159,713 Seattle Washington Municipal Light & Power (Revenue) 6.00% 10/01/2016........................ 150,000 159,333 Shelton Washington Water & Sewer (Revenue) 5.25% 12/01/2018........................ 50,000 48,463 Tacoma Washington Solid Waste Utilities Refunding Series B (Insured Revenue) 6.00% 12/01/2009........................ 100,000 110,179 Thurston County Washington School District #401 Rochester (General Obligation) 4.80% 12/01/2007........................ 55,000 55,130 Toppenish Washington (General Obligation) 4.60% 12/01/2006........................ 65,000 66,873
See Accompanying Notes to Financial Statements 74 SCHEDULE OF INVESTMENTS - --------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- University of Washington Educational Research Properties Lease 4225 Roosevelt Project Series A (Revenue) 5.375% 06/01/2029....................... $100,000 $ 97,695 Washington State Certificates Participation Department General Administration 5.40% 07/01/2013........................ 100,000 103,105 Washington State Public Power Supply System Nuclear Project #1 Refunding Series A (Revenue) 6.00% 07/01/2005........................ 100,000 107,809 System Nuclear Project #2 Refunding Series A (Revenue) 5.00% 07/01/2011........................ 50,000 50,524 Yakima County Washington School District #119 Selah (Insured General Obligation) 5.00% 12/01/2006........................ 10,000 10,552 ----------- 1,915,156 ----------- WYOMING (0.7%) Wyoming Municipal Power Agency Power Supply Refunding Series 1998 (Insured Revenue) 5.25% 01/01/2011........................ 100,000 104,045 ----------- Total Municipal Bonds (Cost $12,915,208)........................ 13,039,169 ----------- TAX EXEMPT MONEY MARKET INVESTMENT (4.1%) SEI Tax Exempt Trust (Cost $567,399)........................... 567,399 567,399 ----------- TOTAL INVESTMENTS (98.8%) (Cost $13,482,607).......................... 13,606,568 OTHER ASSETS LESS LIABILITIES (1.2%)......... 162,278 ----------- NET ASSETS (100.0%).......................... $13,768,846 ===========
COLUMBIA OREGON MUNICIPAL BOND FUND DECEMBER 31, 2001 PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- GENERAL OBLIGATION BONDS (34.6%) STATE OF OREGON GENERAL OBLIGATION (4.6%) Board of Higher Education Deferred Interest Series A 0.00% 08/01/2014.................... $ 490,000 $ 257,593 0.00% 08/01/2017.................... 1,050,000 455,889 Refunding Series B 6.25% 10/15/2012.................... 740,000 762,156 Elderly & Disabled Housing Refunding Series B 6.25% 08/01/2013.................... 1,000,000 1,041,860 Series B 4.95% 08/01/2020.................... 1,000,000 966,850 Veteran's Welfare Series 80A 5.70% 10/01/2032.................... 5,610,000 5,765,733 Alternate Energy PJ, Series D 5.00% 01/01/2028.................... 1,125,000 1,077,795 Pollution Control Series C 5.90% 06/01/2014.................... 615,000 624,040 Veteran's Welfare 9.00% 04/01/2004.................... 280,000 315,745 8.25% 07/01/2005.................... 545,000 630,554 7.25% 01/01/2007.................... 1,530,000 1,752,554 9.20% 04/01/2007.................... 2,390,000 2,961,521 8.25% 07/01/2007.................... 540,000 649,701 7.30% 01/01/2008.................... 445,000 516,850 8.00% 01/01/2008.................... 1,275,000 1,525,474 7.30% 07/01/2008.................... 1,170,000 1,372,749 8.00% 07/01/2008.................... 580,000 702,270 9.20% 10/01/2008.................... 385,000 495,695 5.85% 10/01/2015.................... 825,000 853,314 -------------- 22,728,343 -------------- GENERAL OBLIGATION (15.4%) Aurora 5.60% 06/01/2024.................... 1,205,000 1,176,357 Canyonville South Umpqua Rural Fire District 5.40% 07/01/2031.................... 610,000 602,137 Clackamas & Washington Counties School District #3JT West Linn/ Wilsonville 5.875% 10/01/2009................... 2,550,000 2,611,634 Clackamas County School District #086 6.00% 06/15/2016.................... 2,350,000 2,540,938 Clackamas County School District #7J Lake Oswego Series A 5.70% 06/15/2010.................... 2,735,000 2,835,183
See Accompanying Notes to Financial Statements 75 SCHEDULE OF INVESTMENTS - --------------------------------------------------------------------------------
COLUMBIA OREGON MUNICIPAL BOND FUND (CONT.) DECEMBER 31, 2001 PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- Lake Oswego 5.375% 06/01/2015................... $2,450,000 $ 2,541,189 5.375% 06/01/2016................... 1,295,000 1,333,332 5.375% 06/01/2017................... 2,535,000 2,598,527 Clackamas County School District #108 5.375% 06/15/2015................... 1,055,000 1,088,771 Clatsop County School District #001 Astoria 5.50% 06/15/2019.................... 1,000,000 1,026,580 Coos Bay 4.90% 09/01/2007.................... 2,800,000 2,917,068 Douglas County School District #4 Roseburg 4.90% 12/15/2011.................... 415,000 426,587 5.00% 12/15/2012.................... 500,000 513,525 5.15% 12/15/2014.................... 540,000 553,716 Eugene Public Safety Facilities 5.50% 06/01/2010.................... 850,000 885,309 5.625% 06/01/2013................... 1,295,000 1,344,171 Jackson County School District #009 Eagle Point 5.625% 06/15/2015................... 1,920,000 2,032,243 Lane & Douglas Counties School District #45J3 6.00% 06/15/2014.................... 1,000,000 1,090,680 6.00% 06/15/2015.................... 1,100,000 1,194,149 6.00% 06/15/2016.................... 1,230,000 1,326,395 6.00% 06/15/2017.................... 1,375,000 1,479,789 Metro Washington Park Zoo Series A 5.30% 01/15/2011.................... 1,000,000 1,034,390 Multnomah County Refunding 4.30% 10/01/2011.................... 1,110,000 1,087,756 Multnomah-Clackamas Counties School District #10JT Gresham 5.25% 06/01/2017.................... 1,620,000 1,629,283 Port of Portland Series A 0.00% 03/01/2007.................... 3,010,000 2,414,351 Portland Community College District 0.00% 07/01/2007.................... 2,025,000 1,601,411 Series A 5.375% 06/01/2016................... 2,705,000 2,783,012 5.375% 06/01/2017................... 2,540,000 2,599,817 5.375% 06/01/2014................... 1,925,000 2,012,934
PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- Portland Ltd. Tax Series B 0.00% 06/01/2020.................... $1,000,000 $ 364,450 0.00% 06/01/2012.................... 1,750,000 1,038,117 0.00% 06/01/2013.................... 1,500,000 837,900 0.00% 06/01/2014.................... 1,000,000 527,630 0.00% 06/01/2016.................... 2,500,000 1,161,925 0.00% 06/01/2018.................... 4,000,000 1,647,680 0.00% 06/01/2019.................... 4,000,000 1,547,800 Portland Parks Refunding Series A 5.00% 06/01/2015.................... 3,950,000 3,982,666 Portland Public Improvements Series A 5.75% 06/01/2014.................... 1,095,000 1,131,923 Washington & Clackamas Counties School District #23J Tigard 0.00% 06/15/2018.................... 2,700,000 1,097,469 School District #23J Tigard Deferred Interest Series A 0.00% 06/01/2010.................... 1,520,000 1,009,006 School District #23J Tigard Refunding 5.40% 01/01/2010.................... 1,720,000 1,770,809 Washington County 5.50% 06/01/2016.................... 2,785,000 2,895,481 Washington County Refunding Criminal Justice Facilities 5.00% 12/01/2010.................... 1,400,000 1,443,680 Washington County School District #48J Beaverton 5.125% 01/01/2014................... 2,000,000 2,047,440 5.125% 01/01/2017................... 1,820,000 1,831,411 5.125% 01/01/2018................... 2,260,000 2,264,430 Washington, Multnomah & Yamhill Counties School District #1J 5.25% 06/01/2014.................... 500,000 513,870 5.00% 11/01/2013.................... 1,375,000 1,410,282 -------------- 75,805,203 -------------- INSURED GENERAL OBLIGATION (14.6%) Chemeketa Community College District Series B 5.60% 06/01/2014.................... 1,180,000 1,222,291 Clackamas & Washington Counties School District #3JT 5.00% 06/01/2016.................... 700,000 696,955 Clackamas County Community College 5.25% 06/15/2015.................... 1,500,000 1,533,990 Clackamas County School District #12 North Clackamas 5.25% 06/01/2011.................... 1,000,000 1,040,400 4.80% 06/01/2018.................... 3,840,000 3,658,714 5.25% 06/01/2015.................... 2,750,000 2,793,670
See Accompanying Notes to Financial Statements 76 SCHEDULE OF INVESTMENTS - --------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- Clatsop County Administrative School District #10 5.875% 07/01/2012................... $ 630,000 $ 639,204 Columbia County School District #502 Deferred Interest 0.00% 06/01/2007.................... 260,000 206,344 0.00% 06/01/2012.................... 1,530,000 908,529 0.00% 06/01/2013.................... 1,685,000 947,560 0.00% 06/01/2014.................... 1,025,000 543,455 Deschutes County School District #1 Series A 5.50% 06/15/2018.................... 1,000,000 1,028,410 Hood River County School District 5.65% 06/01/2008.................... 1,020,000 1,084,770 Josephine County School District #7 Grants Pass 5.70% 06/01/2013.................... 2,000,000 2,085,160 Lane & Douglas Counties School District #97J 5.30% 06/15/2015.................... 1,155,000 1,184,961 District #45J3 6.00% 06/15/2013.................... 1,610,000 1,761,871 Lane County School District #19 Springfield Refunding 6.00% 10/15/2012.................... 1,740,000 1,941,335 6.00% 10/15/2014.................... 1,310,000 1,462,458 District #52 Bethel 6.25% 12/01/2007.................... 580,000 639,607 6.40% 12/01/2009.................... 750,000 828,173 Lincoln County School District 5.60% 06/15/2010.................... 3,480,000 3,717,788 6.00% 06/15/2007.................... 1,855,000 2,032,616 6.00% 06/15/2008.................... 1,450,000 1,596,813 Linn Benton Community College 0.00% 06/15/2013.................... 1,000,000 559,990 0.00% 06/15/2015.................... 1,000,000 494,940 Linn County Community School District #9 Lebanon 0.00% 06/15/2021.................... 1,000,000 913,920 0.00% 06/15/2015.................... 710,000 650,878 Marion County Certificates of Participation Courthouse Square Project Series A 4.40% 06/01/2010.................... 430,000 426,762 Marion County School District #103C Woodburn Series B 0.00% 11/01/2006.................... 2,000,000 1,651,180 0.00% 11/01/2007.................... 2,000,000 1,559,400 0.00% 11/01/2009.................... 2,500,000 1,737,600 0.00% 11/01/2011.................... 2,210,000 1,373,382
PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- Multnomah County District #3 Parkrose 5.50% 12/01/2010.................... $ 895,000 $ 946,409 5.50% 12/01/2011.................... 1,000,000 1,055,590 5.70% 12/01/2008.................... 1,330,000 1,423,419 5.70% 12/01/2009.................... 1,970,000 2,112,076 School District #7 Reynolds 5.00% 06/15/2018.................... 1,000,000 989,870 Multnomah-Clackamas Counties Centennial School District #28-302 5.375% 06/15/2016................... 2,055,000 2,102,060 5.375% 06/15/2017................... 2,280,000 2,315,066 5.375% 06/15/2018................... 2,490,000 2,524,586 Northern Oregon Corrections 5.25% 09/15/2012.................... 1,000,000 1,026,900 5.30% 09/15/2013.................... 1,000,000 1,022,340 Salem-Keizer School District #24J 5.00% 06/01/2015.................... 1,000,000 1,005,470 State Department Administrative Services Certificate of Participation Refunding Series A 4.50% 05/01/2012.................... 1,020,000 1,007,056 5.00% 05/01/2013.................... 4,240,000 4,289,142 5.00% 05/01/2014.................... 1,000,000 1,008,170 5.00% 05/01/2024.................... 1,000,000 958,410 Tillamook County 5.70% 01/15/2016.................... 700,000 720,671 Umpqua Community College District 4.70% 06/01/2014.................... 525,000 516,080 Washington County School District #088J Sherwood 4.50% 06/15/2014.................... 350,000 336,938 District #088J Sherwood Unrefunded 6.10% 06/01/2012.................... 185,000 197,621 District #15 Forest Grove 5.25% 06/01/2010.................... 1,000,000 1,051,450 5.25% 08/01/2010.................... 1,150,000 1,202,475 Washington County School District #48J Beaverton 5.10% 06/01/2012.................... 500,000 511,115 Yamhill County School District #40 6.00% 06/01/2009.................... 500,000 552,455 -------------- 71,798,495 -------------- Total General Obligation Bonds (Cost $167,535,659)..................... 170,332,041 --------------
See Accompanying Notes to Financial Statements 77 SCHEDULE OF INVESTMENTS - --------------------------------------------------------------------------------
COLUMBIA OREGON MUNICIPAL BOND FUND (CONT.) DECEMBER 31, 2001 PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- REVENUE BONDS (55.0%) OREGON REVENUE (34.3%) Albany Hospital Facility Authority Mennonite Home 5.625% 10/01/2017................... $ 635,000 $ 570,414 Bend Municipal Airport PJ Series B (AMT) 5.375% 06/01/2013................... 150,000 153,906 Benton County Hospital Facilities Authority Refunding Samaritan Health Services Project 4.30% 10/01/2006.................... 230,000 232,169 4.40% 10/01/2007.................... 220,000 220,546 4.80% 10/01/2011.................... 245,000 245,585 5.20% 10/01/2017.................... 2,255,000 2,173,910 Clackamas County Hospital Facility Authority Willamette View, Inc. Project Series A 6.85% 11/01/2015.................... 1,580,000 1,666,078 Authority Legacy Health System 5.375% 02/15/2012................... 3,135,000 3,249,835 5.50% 02/15/2014.................... 2,385,000 2,454,332 5.00% 02/15/2015.................... 1,400,000 1,376,578 5.50% 02/15/2013.................... 5,450,000 5,646,254 4.60% 05/01/2010.................... 885,000 876,699 5.00% 02/15/2016.................... 1,000,000 977,620 Authority Robison Jewish Home Project 6.25% 10/01/2021.................... 1,630,000 1,587,832 Authority GNMA Collateral Jennings Lodge 7.50% 10/20/2031.................... 1,030,000 1,043,802 Authority Refunding Odd Fellows Home Series A 5.50% 09/15/2008.................... 1,380,000 1,356,719 5.875% 09/15/2021................... 3,015,000 2,752,605 Authority Refunding Willamette View, Inc. Project 6.00% 11/01/2008.................... 670,000 672,727 Authority Willamette Falls Hospital Project 5.75% 04/01/2014.................... 1,005,000 984,227 6.00% 04/01/2019.................... 1,750,000 1,714,125 Kaiser Permanente Series A 5.375% 04/01/2014................... 7,085,000 7,182,773
PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- Refunding Kaiser Permanente Series A 6.50% 04/01/2011.................... $1,000,000 $ 1,015,210 Authority Refunding Legacy Health System 5.00% 05/01/2006.................... 2,285,000 2,374,618 Refunding Odd Fellows Home Series A 5.70% 09/15/2013.................... 600,000 584,940 Clackamas County Housing Authority Multifamily Housing Easton Ridge Series A 5.80% 12/01/2016.................... 2,255,000 2,314,780 Clatsop Care Center Health District Senior Housing 6.875% 08/01/2028................... 500,000 497,200 Deschutes County Hospital Facility Authority 5.75% 01/01/2009.................... 1,670,000 1,727,732 Deschutes Valley Water District 5.875% 09/01/2005................... 3,010,000 3,225,516 Eugene Airport Refunding (AMT) 5.50% 05/01/2005.................... 260,000 269,636 5.65% 05/01/2006.................... 240,000 249,559 5.65% 05/01/2007.................... 555,000 573,304 5.70% 05/01/2008.................... 515,000 531,686 Gresham Sewer 5.35% 06/01/2006.................... 860,000 883,091 Gresham Stormwater 6.10% 10/01/2009.................... 1,115,000 1,166,000 Hillsboro Hospital Facility Authority Tuality Healthcare 5.75% 10/01/2012.................... 6,060,000 6,046,729 Lebanon Urban Renewal Agency 5.625% 06/01/2019................... 1,000,000 980,740 Lebanon Wastewater Refunding 5.75% 06/01/2011.................... 1,225,000 1,266,405 Multnomah County Educational Facilities University of Portland Project 5.70% 04/01/2015.................... 1,000,000 1,019,070 Myrtle Point Water 6.00% 12/01/2020.................... 510,000 508,184 North Clackamas Parks & Recreation District Facilities 5.70% 04/01/2013.................... 2,920,000 3,166,594
See Accompanying Notes to Financial Statements 78 SCHEDULE OF INVESTMENTS - --------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- Northern Wasco County People's Utility District Electric 0.00% 02/01/2006.................... $ 610,000 $ 505,373 0.00% 02/01/2007.................... 585,000 448,993 0.00% 02/01/2008.................... 610,000 435,375 0.00% 02/01/2011.................... 500,000 287,585 Oregon Health, Housing, Educational & Cultural Facilities Authority Linfield College Project Series A 5.50% 10/01/2018.................... 1,000,000 969,910 4.55% 10/01/2008.................... 525,000 517,718 4.65% 10/01/2009.................... 555,000 541,924 Goodwill Industries Lane County Series A 6.65% 11/15/2022.................... 4,050,000 3,976,654 Reed College Project Series A 5.30% 07/01/2011.................... 500,000 515,145 Authority/Aquarium 4.75% 10/01/2008.................... 1,550,000 1,413,259 4.90% 10/01/2009.................... 670,000 608,414 Oregon Housing & Community Services Department Mortgage Single Family Program Series A (AMT) 6.20% 07/01/2027.................... 3,700,000 3,777,626 Department Single Family Mortgage Program Series D 6.70% 07/01/2013.................... 1,000,000 1,017,030 Department Housing Finance Assisted Insured Multi-Unit B 6.80% 07/01/2013.................... 8,360,000 8,502,705 Department Mortgage Single Family Program Series F (AMT) 5.65% 07/01/2028.................... 1,225,000 1,229,447 Department Mortgage Single Family Series F MBIA IBC (AMT) 5.65% 07/01/2028.................... 915,000 919,429 Department Mortgage Single Family Project Series E 5.375% 07/01/2021................... 3,975,000 4,017,652 Department Mortgage Single Family Program Series A 4.85% 07/01/2010.................... 310,000 317,806 Mountain Shadows Apts. B-1 6.25% 12/01/2005.................... 4,000,000 4,078,640 Department Single Family Mortgage Program Series L (AMT) 5.90% 07/01/2031.................... 4,220,000 4,260,090 Oregon Housing Financial 5.80% 07/01/2009.................... 285,000 286,627
PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- Oregon State Health, Housing, Educational & Cultural Facilities Authority St. Anthony Village Housing Series A (AMT) 7.25% 06/01/2028.................... $1,500,000 $ 1,480,455 Oregon State Housing & Community Services Department Multifamily Housing Series B (AMT) 6.00% 07/01/2031.................... 6,935,000 7,090,067 Department Single Family Mortgage Program Series L 6.05% 07/01/2020.................... 2,550,000 2,632,008 Department Mortgage Series M (AMT) 5.80% 07/01/2012.................... 825,000 860,582 Department Single Family Mortgage Series G (AMT) 5.70% 07/01/2032.................... 1,250,000 1,251,737 Department Single Family Mortgage Program Series E 5.80% 07/01/2014.................... 1,080,000 1,125,511 Department Single Family Housing Program Series B (AMT) 5.25% 07/01/2030.................... 1,000,000 951,810 Department Single Family Mortgage Program Series J 5.15% 07/01/2024.................... 2,845,000 2,742,239 Department Single Family Mortgage Program Series E 5.70% 07/01/2012.................... 1,210,000 1,271,734 6.00% 07/01/2020.................... 3,000,000 3,093,990 Department Single Family Mortgage Program Series Q 4.70% 07/01/2015.................... 820,000 794,498 4.90% 07/01/2017.................... 805,000 765,547 Port Morrow 6.70% 06/01/2020.................... 2,000,000 1,978,580 Port of St. Helens 5.60% 08/01/2014.................... 315,000 316,515 5.75% 08/01/2019.................... 425,000 427,027 Port of St. Helens Pollution Control Portland General Electric Co. Series A 4.80% 04/01/2010.................... 5,195,000 4,520,533 Series B 4.80% 06/01/2010.................... 3,500,000 3,040,345 Port Umpqua Pollution Control Refunding International Paper Co. Projects Series A 5.05% 06/01/2009.................... 300,000 303,306
See Accompanying Notes to Financial Statements 79 SCHEDULE OF INVESTMENTS - --------------------------------------------------------------------------------
COLUMBIA OREGON MUNICIPAL BOND FUND (CONT.) DECEMBER 31, 2001 PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- Portland Housing Authority Multifamily Housing Senior Lien Civic Apartments Series A 5.60% 01/01/2018.................... $1,240,000 $ 1,267,813 Portland Housing Authority Refunding Pooled Housing Series A 5.00% 01/01/2019.................... 3,600,000 3,445,020 4.50% 01/01/2009.................... 660,000 669,491 Portland Hydroelectric Power 6.80% 10/01/2004.................... 465,000 466,116 Powell Valley Water District 6.00% 02/01/2015.................... 620,000 627,087 Prineville Sewer First Lien 6.50% 07/01/2004.................... 385,000 410,341 Redmond Urban Renewal Agency Downtown Area B 5.65% 06/01/2013.................... 720,000 727,718 5.85% 06/01/2019.................... 785,000 793,337 Refunding South Airport Industrial Area A 5.70% 06/01/2019.................... 650,000 630,864 Reedsport Water 7.00% 10/01/2014.................... 520,000 543,977 Salem Hospital Facility Authority 5.00% 08/15/2018.................... 2,000,000 1,914,220 5.25% 08/15/2014.................... 2,900,000 2,940,803 Capital Manor, Inc. 7.50% 12/01/2024.................... 905,000 935,571 Sheridan Water 6.20% 05/01/2015.................... 625,000 642,975 6.45% 05/01/2020.................... 520,000 533,770 Sheridan Water Refunding 5.35% 04/01/2018.................... 300,000 291,042 South Fork Water Board First Lien 5.45% 02/01/2014.................... 1,300,000 1,310,114 Umatilla County Hospital Facility Authority Catholic Health Initiatives Series A 6.00% 12/01/2030.................... 4,825,000 4,962,995 5.75% 12/01/2020.................... 530,000 541,798 Veneta Urban Renewal Agency 5.375% 02/15/2016................... 500,000 490,380 5.625% 02/15/2021................... 1,100,000 1,077,725 Washington County Housing Authority Affordable Housing Series A 6.00% 07/01/2020.................... 2,000,000 1,926,540 6.00% 07/01/2023.................... 1,745,000 1,654,347
PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- Multifamily Bethany Meadows Project (AMT) 6.25% 08/01/2010.................... $ 850,000 $ 850,501 Affordable Housing Series B 5.75% 07/01/2023.................... 340,000 322,929 -------------- 168,791,090 -------------- INSURED REVENUE (20.7%) Clackamas County Health Facility Authority Refunding Adventist Health A 6.35% 03/01/2009.................... 1,525,000 1,564,635 Emerald Peoples Utilities District 7.20% 11/01/2006.................... 630,000 728,532 7.35% 11/01/2010.................... 2,160,000 2,604,917 7.35% 11/01/2011.................... 2,000,000 2,438,800 7.35% 11/01/2012.................... 2,490,000 3,065,389 7.35% 11/01/2013.................... 2,675,000 3,278,748 Eugene Electric Utilities System Series B 5.00% 08/01/2023.................... 525,000 511,466 4.55% 08/01/2010.................... 600,000 600,024 4.65% 08/01/2011.................... 375,000 375,019 5.00% 08/01/2018.................... 1,000,000 1,000,000 Eugene Electric Utility Refunding System Series B 5.25% 08/01/2013.................... 1,040,000 1,075,870 Marion County Certificates of Participation Courthouse Square Project Series A 4.60% 06/01/2012.................... 355,000 353,381 Medford Hospital Facilities Authority Asante Health System Series A 5.25% 08/15/2008.................... 1,645,000 1,730,063 5.25% 08/15/2011.................... 800,000 827,880 5.25% 08/15/2010.................... 1,500,000 1,561,065 Multnomah County Educational Facilities Refunding University of Portland Project 5.00% 04/01/2011.................... 1,150,000 1,177,968 5.75% 04/01/2010.................... 2,000,000 2,160,240 Ontario Catholic Health Holy Rosary Medical Center 5.50% 11/15/2012.................... 1,500,000 1,547,280 Oregon Department of Administrative Services Certificates Participation Series A 5.30% 05/01/2008.................... 750,000 793,658 5.70% 05/01/2015.................... 1,000,000 1,035,300
See Accompanying Notes to Financial Statements 80 SCHEDULE OF INVESTMENTS - --------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- Series B 5.50% 11/01/2011.................... $1,635,000 $ 1,717,518 5.00% 11/01/2013.................... 1,000,000 1,009,630 Series C 5.50% 05/01/2011.................... 2,000,000 2,093,060 5.75% 05/01/2017.................... 2,000,000 2,115,160 Oregon Department of General Services Certificates Participation Series C 5.80% 03/01/2015.................... 840,000 861,798 Oregon Health, Housing, Educational & Cultural Facilities Authority Reed College Project Series A 5.10% 07/01/2010.................... 900,000 937,278 Oregon Health Sciences University Capital Appreciation Insured Series A 0.00% 07/01/2021.................... 12,285,000 4,178,988 Series A 0.00% 07/01/2009.................... 1,530,000 1,079,966 0.00% 07/01/2012.................... 1,315,000 781,610 0.00% 07/01/2014.................... 2,495,000 1,317,235 0.00% 07/01/2015.................... 4,325,000 2,141,264 Oregon Health, Housing, Educational & Cultural Facilities Authority Lewis & Clark College 6.00% 10/01/2013.................... 965,000 1,046,099 Oregon Housing & Community Services Department Single Family Mortgage Project Series J (AMT) 5.75% 07/01/2029.................... 8,985,000 9,050,141 Oregon State Department Administrative Services Lottery Education Project 5.25% 04/01/2013.................... 1,500,000 1,546,605 Education Project Series A 5.25% 04/01/2011.................... 4,000,000 4,176,960 Series A 5.00% 04/01/2014.................... 2,705,000 2,741,409 Oregon State Economic Development Dove Lewis 24 Hour Emergency Animal Hospital 7.00% 12/01/2019.................... 1,470,000 1,520,377 Oregon Health, Housing, Educational & Cultural Facility Peacehealth 5.00% 11/15/2032.................... 2,500,000 2,350,850 Port of Portland Airport Portland International Airport Series 11 (AMT) 5.625% 07/01/2013................... 1,000,000 1,024,670 Refunding Series 12B 5.25% 07/01/2012.................... 1,000,000 1,019,010
PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- Series A 5.50% 07/01/2024.................... $8,000,000 $ 7,959,280 Portland Arena Gas Tax 0.00% 06/01/2016.................... 1,100,000 472,736 0.00% 06/01/2017.................... 2,320,000 930,018 Portland Gas Tax Series A 5.80% 06/01/2016.................... 1,625,000 1,704,528 Portland Housing Authority Multifamily Housing Lovejoy Station Apartments Project (AMT) 5.90% 07/01/2023.................... 1,000,000 1,029,710 Portland Sewer System Series A 4.50% 06/01/2018.................... 3,030,000 2,751,907 Salem Water & Sewer 5.30% 06/01/2015.................... 1,500,000 1,531,740 Tri-County Metropolitan Transportation District Series 1 5.40% 06/01/2019.................... 4,200,000 4,244,940 Tualatin Hills Park & Recreation District 5.75% 03/01/2014.................... 990,000 1,073,605 Washington County Housing Authority Multifamily Tualatin Meadows (AMT) 5.90% 11/01/2018.................... 1,000,000 1,033,410 Washington County Unified Sewer Agency 5.50% 10/01/2016.................... 1,250,000 1,282,287 Series A 0.00% 10/01/2007.................... 4,835,000 3,783,194 Western Lane Hospital District Facility Authority Refunding Sisters St. Joseph Peace 5.625% 08/01/2007................... 2,460,000 2,605,607 -------------- 101,542,825 -------------- Total Revenue Bonds (Cost $267,517,690)..................... 270,333,915 -------------- PRE-REFUNDED BONDS (2.7%) Eugene Electric Utility Refunding 5.80% 08/01/2008.................... 1,435,000 1,469,512 5.80% 08/01/2009.................... 1,300,000 1,331,265 6.00% 08/01/2011.................... 1,375,000 1,409,636 Grants Pass Urban Renewal Agency Tax Increment 6.125% 08/01/2012................... 755,000 758,775 Linn County Community School District #9 Lebanon 6.125% 06/15/2014................... 1,410,000 1,582,133 Oregon City Sewer 6.50% 10/01/2007.................... 500,000 544,155
See Accompanying Notes to Financial Statements 81 SCHEDULE OF INVESTMENTS - --------------------------------------------------------------------------------
COLUMBIA OREGON MUNICIPAL BOND FUND (CONT.) DECEMBER 31, 2001 PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- Oregon Department of Administrative Services Certificates Participation Series A 6.00% 05/01/2012.................... $2,695,000 $ 2,990,129 6.25% 05/01/2018.................... 1,000,000 1,136,180 5.75% 05/01/2020.................... 1,500,000 1,576,470 Yamhill County School District #40 Prerefunded 5.35% 06/01/2010.................... 500,000 534,775 -------------- Total Pre-Refunded Bonds (Cost $12,586,919)...................... 13,333,030 -------------- OTHER BONDS (2.9%) Hood River Urban Renewal Agency 6.25% 12/15/2011.................... 1,250,000 1,328,750 Lebanon Urban Renewal 5.75% 06/01/2015.................... 1,120,000 1,110,278 6.00% 06/01/2020.................... 1,580,000 1,574,438 Lebanon Special Obligation Refunding Lease Water 5.40% 10/01/2013.................... 755,000 759,130 Medford Urban Renewal Agency 5.875% 09/01/2010................... 500,000 522,385 Multnomah County Certificate of Participation 4.55% 08/01/2010.................... 1,000,000 1,005,730 Portland Airport Way Urban Renewal & Redevelopment Tax Increment Series C 5.90% 06/01/2006.................... 860,000 887,684 Portland Urban Renewal & Redevelopment Convention Center, Series A 5.75% 06/15/2017.................... 1,500,000 1,584,285 5.75% 06/15/2018.................... 2,050,000 2,163,591 Unrefunded Balance, Series L 6.40% 06/01/2008.................... 1,695,000 1,712,848 Seaside Urban Renewal Agency Greater Seaside 5.25% 06/01/2015.................... 1,000,000 965,080 Wilsonville Limited Tax Improvement 5.00% 12/01/2020.................... 540,000 541,669 -------------- Total Other Bonds (Cost $13,858,787)...................... 14,155,868 --------------
PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- U.S. TERRITORIES (0.6%) Guam Housing Corporation Single Family Mortgage Backed Securities, Series A (AMT) 5.75% 09/01/2031.................... $ 175,000 $ 175,730 Puerto Rico Housing Finance Corp. Multifamily Mortgage Portfolio A1 7.50% 04/01/2022.................... 1,355,000 1,360,840 Virgin Islands Public Finance Authority Unrefunded Balance, Series A 7.30% 10/01/2018.................... 1,185,000 1,463,060 -------------- Total U.S. Territories Bonds (Cost $2,919,181)....................... 2,999,630 -------------- TAX EXEMPT MONEY MARKET INVESTMENT (3.3%) SEI Tax Exempt Trust (Cost $16,101,852).................... 16,101,852 16,101,852 -------------- TOTAL INVESTMENTS (99.1%) (Cost $480,520,088)..................... 487,256,336 OTHER ASSETS LESS LIABILITIES (0.9%)..... 4,381,537 -------------- NET ASSETS (100.0%)...................... $ 491,637,873 ==============
COLUMBIA HIGH YIELD FUND DECEMBER 31, 2001 PRINCIPAL AMOUNT VALUE - ---------------------------------------------------------------------- CORPORATE NOTES & BONDS (89.8%) AUTOMOTIVE/AUTO PARTS (5.7%) American Axle & Manufacturing, Inc. Senior Subordinated Notes 9.75% 03/01/2009.................... $ 5,700,000 $ 5,842,500 Collins & Aikman Products (144A) Senior Notes 10.75% 12/31/2011................... 1,500,000 1,511,250 Lear Corp. Senior Notes, Series B 7.96% 05/15/2005.................... 6,250,000 6,342,894 ------------ 13,696,644 ------------ BROADCASTING (1.7%) Radio One, Inc. Senior Subordinated Notes, Series B 8.875% 07/01/2011................... 3,975,000 4,094,250 ------------
See Accompanying Notes to Financial Statements 82 SCHEDULE OF INVESTMENTS - --------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE - ---------------------------------------------------------------------- CABLE TV (9.9%) Adelphia Communications Corp. Senior Discount Notes 0.00% 03/15/2003.................... $ 400,000 $ 356,000 Senior Notes, Series B 10.50% 07/15/2004................... 3,250,000 3,266,250 Senior Notes 9.50% 03/01/2005.................... 1,500,000 1,477,500 10.25% 11/01/2006................... 500,000 505,000 Charter Communications Holdings L.L.C./Charter Communications Holdings Capital Corp. Senior Notes 10.75% 10/01/2009................... 3,000,000 3,135,000 Senior Discount Notes 0.00% 01/15/2005.................... 2,500,000 1,775,000 CSC Holdings, Inc. Senior Notes 7.875% 12/15/2007................... 4,750,000 4,917,628 Senior Debentures, Series B 8.125% 08/15/2009................... 475,000 489,468 Mediacom L.L.C./Mediacom Capital Corp. Senior Notes 9.50% 01/15/2013.................... 5,500,000 5,706,250 Rogers Cablesystems Ltd. Notes 9.625% 08/01/2002................... 490,000 504,087 Senior Secured Second Priority Debentures 10.00% 12/01/2007................... 500,000 535,000 Rogers Communications, Inc. Senior Notes 8.875% 07/15/2007................... 1,000,000 1,017,500 ------------ 23,684,683 ------------ CAPITAL GOODS (2.4%) United Rentals, Inc. Senior Subordinated Notes, Series B 9.50% 06/01/2008.................... 500,000 502,500 8.80% 08/15/2008.................... 1,425,000 1,396,500 Senior Notes, Series B 9.25% 01/15/2009.................... 3,700,000 3,681,500 ------------ 5,580,500 ------------ CONSUMER PRODUCTS (5.1%) Hasbro, Inc. Senior Notes 8.50% 03/15/2006.................... 650,000 663,000 Notes 6.15% 07/15/2008.................... 4,000,000 3,640,000
PRINCIPAL AMOUNT VALUE - ---------------------------------------------------------------------- Pennzoil-Quaker State Co. (144A) Senior Notes 10.00% 11/01/2008................... $ 4,405,000 $ 4,625,250 The Scotts Co. Senior Subordinated Notes 8.625% 01/15/2009................... 3,225,000 3,305,625 ------------ 12,233,875 ------------ DIVERSIFIED MEDIA (3.5%) Fox/Liberty Networks L.L.C. Senior Notes 8.875% 08/15/2007................... 2,750,000 2,860,000 Heritage Media Corp. Senior Subordinated Notes 8.75% 02/15/2006.................... 1,500,000 1,503,750 Lamar Media Corp. Senior Subordinated Notes 9.625% 12/01/2006................... 2,250,000 2,359,688 9.25% 08/15/2007.................... 1,000,000 1,050,000 8.625% 09/15/2007................... 500,000 517,500 ------------ 8,290,938 ------------ ELECTRIC (4.4%) AES Corp. Senior Subordinated Notes 10.25% 07/15/2006................... 4,300,000 3,870,000 Notes 8.75% 06/15/2008.................... 2,000,000 1,760,000 Calpine Corp. Senior Notes 7.625% 04/15/2006................... 3,000,000 2,685,000 8.75% 07/15/2007.................... 2,500,000 2,262,500 ------------ 10,577,500 ------------ ENERGY (4.7%) El Paso Energy Partners L.P. Senior Subordinated Notes, Series B 8.50% 06/01/2011.................... 4,500,000 4,567,500 Pride International, Inc. Senior Notes 9.375% 05/01/2007................... 1,500,000 1,565,625 10.00% 06/01/2009................... 1,000,000 1,090,000 Vintage Petroleum, Inc. Senior Subordinated Notes 9.75% 06/30/2009.................... 3,700,000 3,922,000 ------------ 11,145,125 ------------ ENVIRONMENTAL (2.5%) Allied Waste North America, Inc. Senior Subordinated Notes, Series B 10.00% 08/01/2009................... 5,750,000 5,893,750 ------------
See Accompanying Notes to Financial Statements 83 SCHEDULE OF INVESTMENTS - --------------------------------------------------------------------------------
COLUMBIA HIGH YIELD FUND (CONT.) DECEMBER 31, 2001 PRINCIPAL AMOUNT VALUE - ---------------------------------------------------------------------- GAMING (6.1%) Harrahs Operating Co., Inc. Senior Subordinated Notes 7.875% 12/15/2005................... $ 2,750,000 $ 2,853,125 Notes 7.125% 06/01/2007................... 3,030,000 3,069,532 International Game Technology Senior Notes 7.875% 05/15/2004................... 1,000,000 1,032,500 Park Place Entertainment Corp. Senior Subordinated Notes 9.375% 02/15/2007................... 5,000,000 5,237,500 Station Casinos, Inc. Senior Subordinated Notes 9.75% 04/15/2007.................... 2,250,000 2,289,375 ------------ 14,482,032 ------------ HEALTH CARE (9.6%) AdvancePCS Senior Notes 8.50% 04/01/2008.................... 3,500,000 3,657,500 AmeriSourceBergen Corp. (144A) Senior Notes 8.125% 09/01/2008................... 4,000,000 4,120,000 HCA-The Healthcare Co. Notes 6.91% 06/15/2005.................... 2,000,000 2,010,000 7.00% 07/01/2007.................... 1,000,000 1,005,000 Omnicare, Inc. Senior Subordinated Notes, Series B 8.125% 03/15/2011................... 4,500,000 4,629,375 Select Medical Corp. Senior Subordinated Notes 9.50% 06/15/2009.................... 4,000,000 3,990,000 Triad Hospitals, Inc. Senior Notes, Series B 8.75% 05/01/2009.................... 3,450,000 3,605,250 ------------ 23,017,125 ------------
PRINCIPAL AMOUNT VALUE - ---------------------------------------------------------------------- HOMEBUILDERS (4.7%) KB HOME Senior Subordinated Notes 8.625% 12/15/2008................... $ 5,000,000 $ 5,050,000 Toll Corp. Senior Subordinated Notes 8.75% 11/15/2006.................... 1,750,000 1,776,250 7.75% 09/15/2007.................... 2,000,000 1,965,000 8.125% 02/01/2009................... 1,000,000 987,500 8.00% 05/01/2009.................... 500,000 490,000 8.25% 02/01/2011.................... 1,000,000 997,500 ------------ 11,266,250 ------------ HOTELS (3.4%) Extended Stay America, Inc. Senior Subordinated Notes 9.875% 06/15/2011................... 5,000,000 5,187,500 Meristar Hospitality Corp. Senior Notes 9.00% 01/15/2008.................... 3,000,000 2,865,000 ------------ 8,052,500 ------------ LEISURE (2.1%) Six Flags, Inc. Senior Notes 9.75% 06/15/2007.................... 1,000,000 1,010,000 9.50% 02/01/2009.................... 2,750,000 2,774,063 Senior Discount Notes 0.00% 04/01/2008.................... 1,500,000 1,286,250 ------------ 5,070,313 ------------ NON-FOOD & DRUG RETAIL (1.1%) *Flooring America, Inc. Senior Subordinated Notes, Series B 12.75% 10/15/2002................... 869,500 43,475 United Stationers Supply Co. Senior Subordinated Notes 8.375% 04/15/2008................... 2,530,000 2,564,787 ------------ 2,608,262 ------------ PACKAGING (4.0%) Ball Corp. Senior Subordinated Notes 8.25% 08/01/2008.................... 4,250,000 4,483,750 Silgan Holdings, Inc. Senior Subordinated Debentures 9.00% 06/01/2009.......................... 5,103,000 5,154,030 ------------ 9,637,780 ------------
See Accompanying Notes to Financial Statements 84 SCHEDULE OF INVESTMENTS - --------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE - ---------------------------------------------------------------------- PAPER/FOREST PRODUCTS (0.6%) Buckeye Technologies, Inc. Senior Subordinated Notes 8.50% 12/15/2005.................... $ 1,500,000 $ 1,447,500 ------------ REAL ESTATE INVESTMENT TRUSTS (REITS) (1.7%) Health Care REIT, Inc. Senior Notes 7.50% 08/15/2007.................... 4,000,000 4,007,504 ------------ RESTAURANTS (2.2%) Tricon Global Restaurants, Inc. Senior Notes 7.45% 05/15/2005.................... 5,250,000 5,355,000 ------------ SERVICES (1.8%) Iron Mountain, Inc. Senior Subordinated Notes 8.25% 07/01/2011.................... 1,000,000 1,020,000 8.75% 09/30/2009.................... 750,000 783,750 Senior Unsecured Notes 8.625% 04/01/2013................... 1,000,000 1,030,000 Pierce Leahy Corp. Senior Subordinated Notes 9.125% 07/15/2007................... 1,500,000 1,582,500 ------------ 4,416,250 ------------ SHIPPING (2.5%) Teekay Shipping Corp. Senior Notes 8.875% 07/15/2011................... 5,725,000 5,896,750 ------------ FOOD & DRUG RETAIL (5.9%) Cott Beverages, Inc. (144A) Senior Subordinated Notes 8.00% 12/15/2011.................... 2,950,000 2,891,000 Great Atlantic & Pacific Tea Co., Inc., The Senior Notes 9.125% 12/15/2011................... 3,000,000 3,022,500 Ingles Markets, Inc. (144A) Bonds 8.875% 12/01/2011................... 2,500,000 2,462,500 Winn-Dixie Stores, Inc. Senior Notes 8.875% 04/01/2008................... 6,000,000 5,715,000 ------------ 14,091,000 ------------
PRINCIPAL AMOUNT VALUE - ---------------------------------------------------------------------- TELECOMMUNICATIONS (4.2%) Crown Castle International Corp. Senior Notes 10.75% 08/01/2011................... $ 5,500,000 $ 5,376,250 Nextel Communications, Inc. Senior Notes 9.375% 11/15/2009................... 6,000,000 4,650,000 ------------ 10,026,250 ------------ Total Corporate Notes & Bonds (Cost $215,190,111)..................... 214,571,781 ------------ REPURCHASE AGREEMENTS (8.0%) J.P. Morgan Securities, Inc. 1.78% Dated 12/31/2001, due 01/02/2002 in the amount of $11,647,420. Collateralized 102% by U.S. Treasury Strips due 02/15/2002 to 02/15/2014............ 11,646,851 11,646,851 Merrill Lynch 1.83% Dated 12/31/2001, due 01/02/2002 in the amount of $7,600,380. Collateralized 102% by U.S. Treasury Strips due 05/15/2012 to 11/15/2026............ 7,600,000 7,600,000 ------------ Total Repurchase Agreements (Cost $19,246,851)...................... 19,246,851 ------------ TOTAL INVESTMENTS (97.8%) (Cost $234,436,962)..................... 233,818,632 OTHER ASSETS LESS LIABILITIES (2.2%)..... 5,175,209 ------------ NET ASSETS (100.0%)...................... $238,993,841 ============
* Flooring America, Inc., filed a bankruptcy petition for reorganization on June 15, 2000. Effective on that date, interest is not being accrued. See Accompanying Notes to Financial Statements 85 SCHEDULE OF INVESTMENTS - --------------------------------------------------------------------------------
COLUMBIA DAILY INCOME COMPANY DECEMBER 31, 2001 PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- U.S. GOVERNMENT SECURITIES (13.2%) U.S. Treasury Bill 2.16% 01/17/2002................... $15,000,000 $ 14,984,700 Fannie Mae 6.625% 01/15/2002.................. 15,800,000 15,827,245 5.375% 03/15/2002.................. 33,500,000 33,709,275 Federal Home Loan Bank 6.75% 02/15/2002................... 18,730,000 18,808,800 6.75% 02/15/2002................... 13,700,000 13,772,968 6.75% 05/01/2002................... 18,000,000 18,288,919 Freddie Mac 2.24% 01/25/2002................... 25,000,000 24,961,111 *Sallie Mae 1.902% 04/18/2002.................. 25,000,000 25,000,000 -------------- Total U.S. Government Securities (Cost $165,353,018).................... 165,353,018 -------------- COMMERCIAL PAPER (86.7%) Abbey National N.A. 2.22% 01/22/2002................... 14,000,000 13,981,007 1.89% 02/04/2002................... 26,000,000 25,952,225 American Express Credit Corp. 1.81% 04/30/2002................... 11,000,000 10,933,633 1.86% 01/31/2002................... 20,000,000 19,967,967 American General Corp. 2.07% 01/24/2002................... 20,000,000 19,972,400 American Honda Finance Corp. 1.76% 01/17/2002................... 11,500,000 11,490,442 2.06% 02/20/2002................... 10,000,000 9,970,817 2.02% 02/22/2002................... 14,000,000 13,958,366 Bank One Corp. 1.98% 01/28/2002................... 27,000,000 26,958,420 Bank of America Corp. 1.76% 01/29/2002................... 22,000,000 21,968,809 Barclays U.S. Funding Corp. 2.095% 01/04/2002.................. 27,000,000 26,993,715 1.79% 01/08/2002................... 18,000,000 17,992,840 Becton Dickinson & Co. 1.82% 01/07/2002................... 12,000,000 11,995,753 BP America, Inc. 1.78% 03/19/2002................... 22,000,000 21,915,153 Caterpillar Financial Services Corp. 1.90% 01/07/2002................... 8,700,000 8,696,786 2.21% 02/13/2002................... 15,000,000 14,959,483 1.86% 03/06/2002................... 10,000,000 9,966,417 Chevron UK Investment plc 2.01% 03/14/2002................... 25,000,000 24,898,104 1.84% 04/03/2002................... 15,000,000 14,928,700
PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- CIT Group, Inc. 2.22% 02/28/2002................... $12,000,000 $ 11,956,340 Citicorp 1.89% 01/07/2002................... 4,000,000 3,998,530 1.78% 01/09/2002................... 15,500,000 15,493,102 1.84% 01/16/2002................... 10,000,000 9,991,822 1.80% 01/10/2002................... 13,500,000 13,493,250 Coca-Cola Co. 1.78% 01/14/2002................... 7,000,000 6,995,154 1.76% 02/07/2002................... 30,000,000 29,944,267 Deutsche Bank Financial, Inc. 1.805% 04/08/2002.................. 25,000,000 24,877,160 General Electric Capital Corp. 1.81% 03/29/2002................... 10,000,000 9,955,756 General Electric Capital Services 2.08% 01/03/2002................... 18,000,000 17,996,880 2.22% 01/23/2002................... 10,000,000 9,985,817 Goldman Sachs Group, Inc. 2.50% 01/04/2002................... 4,800,000 4,798,667 3.22% 01/15/2002................... 15,000,000 14,979,875 1.95% 01/14/2002................... 17,000,000 16,987,108 Household Finance Corp. 2.11% 01/28/2002................... 13,000,000 12,978,666 1.80% 02/07/2002................... 7,000,000 6,986,700 2.31% 02/08/2002................... 23,000,000 22,942,443 IBM Credit Corp. 1.76% 01/10/2002................... 22,000,000 21,989,244 Idaho Power Co. 1.86% 01/22/2002................... 12,000,000 11,986,360 1.90% 01/22/2002................... 6,000,000 5,993,033 1.85% 01/25/2002................... 10,000,000 9,987,153 John Deere Capital Corp. 2.12% 01/18/2002................... 20,000,000 19,978,800 2.22% 01/24/2002................... 25,000,000 24,963,000 JP Morgan Chase & Co. 1.86% 02/11/2002................... 20,000,000 19,956,600 Kraft Foods, Inc. 1.84% 01/07/2002................... 11,800,000 11,795,778 1.90% 01/30/2002................... 28,700,000 28,654,558 1.98% 01/31/2002................... 12,000,000 11,979,540 Lubrizol Corp. 2.01% 01/29/2002................... 23,000,000 22,962,759 McGraw-Hill Cos. 2.00% 03/12/2002................... 18,000,000 17,929,000 1.78% 02/14/2002................... 13,881,000 13,850,115 MetLife Funding, Inc. 2.12% 01/23/2002................... 20,000,000 19,972,911 2.05% 02/05/2002................... 15,279,000 15,248,667
See Accompanying Notes to Financial Statements 86 SCHEDULE OF INVESTMENTS - --------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- Morgan Stanley Dean Witter & Co. 1.87% 01/17/2002................... $10,000,000 $ 9,991,169 2.03% 01/25/2002................... 18,000,000 17,974,625 2.35% 01/11/2002................... 15,000,000 14,989,229 National Rural Utilities Cooperative Finance Corp. 2.03% 01/18/2002................... 10,835,000 10,824,002 1.83% 02/05/2002................... 12,000,000 11,978,040 2.04% 01/16/2002................... 20,000,000 19,981,867 Pitney Bowes, Inc. 1.90% 01/11/2002................... 20,000,000 19,988,389 Texaco, Inc. 1.91% 02/07/2002................... 5,600,000 5,588,710 Tyco Capital Corp. 1.79% 02/06/2002................... 30,000,000 29,944,808 UBS Finance, Inc 1.73% 02/14/2002................... 38,500,000 38,416,744 USAA Capital Corp. 1.90% 01/04/2002................... 10,000,000 9,997,889 1.75% 02/20/2002................... 12,000,000 11,970,250 Verizon Network Funding 2.03% 01/02/2002................... 26,000,000 25,997,068 1.83% 01/18/2002................... 8,600,000 8,592,131 Walgreen Co. 1.83% 01/15/2002................... 22,000,000 21,983,225 Washington Gas Light Co. 2.07% 01/03/2002................... 10,000,000 9,998,275 -------------- Total Commercial Paper (Cost $1,087,326,513)........................ 1,087,326,513 --------------
PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------- REPURCHASE AGREEMENT (0.7%) J.P. Morgan Securities, Inc. 1.78% Dated 12/31/2001, due 01/02/2002 in the amount of $8,491,620. Collateralized 102% by U.S. Treasury Strips due 02/15/2002 to 02/15/2014 (Cost $8,491,205).................. $ 8,491,205 $ 8,491,205 -------------- TOTAL INVESTMENTS (100.6%) (Cost $1,261,170,736).................. 1,261,170,736 OTHER ASSETS LESS LIABILITIES (-0.6%)... (7,635,539) -------------- NET ASSETS (100.0%)..................... $1,253,535,197 ==============
* Floating rate note whose interest rate is reset periodically based on an index. The interest rate shown reflects the rate at December 31, 2001. See Accompanying Notes to Financial Statements 87 STATEMENTS OF ASSETS AND LIABILITIES - -------------------------------------------------------------------------------- COLUMBIA FUNDS DECEMBER 31, 2001 (IN THOUSANDS, EXCEPT NET ASSET VALUE)
COMMON INTERNATIONAL STOCK GROWTH STOCK SPECIAL SMALL CAP FUND FUND FUND FUND FUND -------- ---------- -------- --------- --------- ASSETS: Investments, at cost........................ $587,765 $1,095,360 $135,255 $ 655,698 $ 538,505 Investments, at cost -- federal income tax purposes.................................. $593,464 $1,133,670 $136,009 $ 674,586 $ 542,611 - --------------------------------------------- -------- ---------- -------- --------- --------- Investments................................. $649,690 $1,274,288 $132,438 $ 772,281 $ 582,217 Repurchase agreements....................... 30,446 61,028 5,021 5,325 49,117 -------- ---------- -------- --------- --------- Total investments, at value................. 680,136 1,335,316 137,459 777,606 631,334 Cash........................................ -- -- 41 -- -- Receivable for: Investments sold.......................... 6,122 7,057 189 17,746 2,561 Capital stock sold........................ 840 698 59 660 2,575 Interest.................................. 36 72 64 27 75 Dividends................................. 631 873 215 49 43 Expense reimbursement..................... -- -- -- -- -- -------- ---------- -------- --------- --------- Total assets................................ 687,765 1,344,016 138,027 796,088 636,588 -------- ---------- -------- --------- --------- LIABILITIES: Payable for: Investments purchased..................... 3,639 5,329 -- 2,110 11,800 Capital stock redeemed.................... 2,157 11,864 2,153 7,087 6,150 Dividends and distributions............... 42 -- -- -- -- Litigation................................ -- -- -- -- -- Investment management fee................. 346 647 115 606 496 Transfer agent fees and expenses.......... 74 125 43 75 46 Other accrued expenses.................... 110 207 90 139 130 -------- ---------- -------- --------- --------- Total liabilities........................... 6,368 18,172 2,401 10,017 18,622 -------- ---------- -------- --------- --------- NET ASSETS................................... $681,397 $1,325,844 $135,626 $ 786,071 $ 617,966 ======== ========== ======== ========= ========= NET ASSETS consist of: Paid-in capital............................. $650,302 $1,286,739 $161,907 $ 802,290 $ 647,392 Undistributed net investment income (loss).................................... 7 -- (298) -- -- Undistributed net realized gain (accumulated losses) from investment transactions...... (61,283) (200,851) (28,187) (138,127) (122,255) Unrealized appreciation (depreciation) on investments............................... 92,371 239,956 2,204 121,908 92,829 -------- ---------- -------- --------- --------- NET ASSETS................................... $681,397 $1,325,844 $135,626 $ 786,071 $ 617,966 ======== ========== ======== ========= ========= SHARES OF CAPITAL STOCK OUTSTANDING.......... 34,117 42,294 11,271 40,114 27,832 ======== ========== ======== ========= ========= NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE............................. $ 19.97 $ 31.35 $ 12.03 $ 19.60 $ 22.20 ======== ========== ======== ========= =========
See Accompanying Notes to Financial Statements 88 STATEMENTS OF ASSETS AND LIABILITIES - --------------------------------------------------------------------------------
REAL ESTATE STRATEGIC SHORT TERM EQUITY TECHNOLOGY VALUE BALANCED BOND FUND FUND FUND FUND FUND -------- ------- -------- ---------- ------- ASSETS: Investments, at cost........................ $554,431 $ 9,552 $123,637 $ 915,779 $65,851 Investments, at cost -- federal income tax purposes.................................. $550,521 $10,155 $124,061 $ 921,788 $65,851 - --------------------------------------------- -------- ------- -------- ---------- ------- Investments................................. $561,696 $10,073 $112,544 $ 943,761 $57,934 Repurchase agreements....................... 58,539 621 26,355 58,611 8,573 -------- ------- -------- ---------- ------- Total investments, at value................. 620,235 10,694 138,899 1,002,372 66,507 Cash........................................ -- -- -- -- -- Receivable for: Investments sold.......................... -- 161 1,500 4,814 -- Capital stock sold........................ 1,471 65 881 663 132 Interest.................................. 126 -- 37 5,159 603 Dividends................................. 2,424 1 102 550 -- Expense reimbursement..................... -- 10 -- -- 5 -------- ------- -------- ---------- ------- Total assets................................ 624,256 10,931 141,419 1,013,558 67,247 -------- ------- -------- ---------- ------- LIABILITIES: Payable for: Investments purchased..................... -- 296 582 22,803 4,053 Capital stock redeemed.................... 2,050 216 1,177 6,278 196 Dividends and distributions............... 94 -- 3 93 9 Litigation................................ -- -- -- -- -- Investment management fee................. 384 9 84 417 26 Transfer agent fees and expenses.......... 21 6 13 78 10 Other accrued expenses.................... 117 19 56 140 23 -------- ------- -------- ---------- ------- Total liabilities........................... 2,666 546 1,915 29,809 4,317 -------- ------- -------- ---------- ------- NET ASSETS................................... $621,590 $10,385 $139,504 $ 983,749 $62,930 ======== ======= ======== ========== ======= NET ASSETS consist of: Paid-in capital............................. $565,108 $14,240 $124,291 $ 973,021 $62,256 Undistributed net investment income (loss).................................... -- -- 1 (423) -- Undistributed net realized gain (accumulated losses) from investment transactions...... (9,322) (4,997) (50) (75,442) 18 Unrealized appreciation (depreciation) on investments............................... 65,804 1,142 15,262 86,593 656 -------- ------- -------- ---------- ------- NET ASSETS................................... $621,590 $10,385 $139,504 $ 983,749 $62,930 ======== ======= ======== ========== ======= SHARES OF CAPITAL STOCK OUTSTANDING.......... 34,460 1,693 9,607 47,587 7,362 ======== ======= ======== ========== ======= NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE............................. $ 18.04 $ 6.13 $ 14.52 $ 20.67 $ 8.55 ======== ======= ======== ========== =======
See Accompanying Notes to Financial Statements 89 STATEMENTS OF ASSETS AND LIABILITIES - --------------------------------------------------------------------------------
FIXED NATIONAL OREGON COLUMBIA INCOME MUNICIPAL MUNICIPAL DAILY SECURITIES BOND BOND HIGH YIELD INCOME FUND FUND FUND FUND COMPANY -------- ------- -------- -------- ---------- ASSETS: Investments, at cost........................ $470,793 $13,483 $480,520 $234,437 $1,261,171 Investments, at cost -- federal income tax purposes.................................. $471,620 $13,481 $480,386 $234,878 $1,261,171 - --------------------------------------------- -------- ------- -------- -------- ---------- Investments................................. $442,935 $13,607 $487,256 $214,572 $1,252,680 Repurchase agreements....................... 37,335 -- -- 19,247 8,491 -------- ------- -------- -------- ---------- Total investments, at value................. 480,270 13,607 487,256 233,819 1,261,171 Cash........................................ -- -- -- -- 4,000 Receivable for: Investments sold.......................... 2,127 -- -- -- -- Capital stock sold........................ 271 -- 212 1,495 3,429 Interest.................................. 5,794 199 6,430 4,814 2,144 Dividends................................. -- -- -- -- -- Expense reimbursement..................... -- 7 -- -- -- -------- ------- -------- -------- ---------- Total assets................................ 488,462 13,813 493,898 240,128 1,270,744 -------- ------- -------- -------- ---------- LIABILITIES: Payable for: Investments purchased..................... 18,940 -- -- -- -- Capital stock redeemed.................... 3,370 20 1,613 696 16,425 Dividends and distributions............... 110 4 383 54 -- Litigation................................ -- -- -- 178 -- Investment management fee................. 198 6 205 124 498 Transfer agent fees and expenses.......... 34 3 12 11 93 Other accrued expenses.................... 67 11 47 71 193 -------- ------- -------- -------- ---------- Total liabilities........................... 22,719 44 2,260 1,134 17,209 -------- ------- -------- -------- ---------- NET ASSETS................................... $465,743 $13,769 $491,638 $238,994 $1,253,535 ======== ======= ======== ======== ========== NET ASSETS consist of: Paid-in capital............................. $465,897 $13,652 $483,454 $249,781 $1,253,535 Undistributed net investment income (loss).................................... (569) (2) 17 (280) -- Undistributed net realized gain (accumulated losses) from investment transactions...... (9,062) (5) 1,431 (9,889) -- Unrealized appreciation (depreciation) on investments............................... 9,477 124 6,736 (618) -- -------- ------- -------- -------- ---------- NET ASSETS................................... $465,743 $13,769 $491,638 $238,994 $1,253,535 ======== ======= ======== ======== ========== SHARES OF CAPITAL STOCK OUTSTANDING.......... 35,232 1,410 40,696 26,945 1,253,535 ======== ======= ======== ======== ========== NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE............................. $ 13.22 $ 9.77 $ 12.08 $ 8.87 $ 1.00 ======== ======= ======== ======== ==========
See Accompanying Notes to Financial Statements 89 STATEMENTS OF OPERATIONS - -------------------------------------------------------------------------------- COLUMBIA FUNDS FOR THE YEAR ENDED DECEMBER 31, 2001 (IN THOUSANDS)
COMMON INTERNATIONAL STOCK GROWTH STOCK SPECIAL SMALL CAP FUND FUND FUND FUND FUND --------- --------- -------- --------- -------- NET INVESTMENT INCOME: Income: Interest.................................. $ 812 $ 1,421 $ 322 $ 3,413 $ 1,831 Dividends................................. 7,461 8,369 2,470 1,678 832 Foreign withholding tax on dividend income................................... -- -- (312) -- -- --------- --------- -------- --------- --------- Total income............................. 8,273 9,790 2,480 5,091 2,663 --------- --------- -------- --------- --------- Expenses: Investment management fees................ 4,439 8,378 1,535 7,791 5,138 Transfer agent fees and expenses.......... 892 1,536 533 933 536 Shareholder servicing fees................ 239 218 20 262 340 Postage, printing, and other.............. 176 481 99 234 134 Custodian fees............................ 67 101 133 77 91 Registration and filing fees.............. 33 44 28 38 61 Legal, insurance, and audit fees.......... 39 50 43 45 38 Director fees............................. 7 15 1 8 5 --------- --------- -------- --------- --------- Total expenses........................... 5,892 10,823 2,392 9,388 6,343 Fees paid indirectly...................... (12) (27) (8) (17) (10) Expense reimbursements.................... -- -- -- -- -- --------- --------- -------- --------- --------- Net expenses............................. 5,880 10,796 2,384 9,371 6,333 --------- --------- -------- --------- --------- Net investment income (loss)................ 2,393 (1,006) 96 (4,280) (3,670) --------- --------- -------- --------- --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) from: Investment transactions................... (53,094) (197,533) (24,968) (128,113) (102,071) Foreign currency transactions............. -- -- (487) -- -- --------- --------- -------- --------- --------- Net realized gain (loss)................. (53,094) (197,533) (25,455) (128,113) (102,071) --------- --------- -------- --------- --------- Change in net unrealized appreciation or depreciation on: Investments............................... (104,551) (197,526) (6,997) (102,085) 29,412 Translation of assets and liabilities in foreign currencies....................... -- -- (38) -- -- --------- --------- -------- --------- --------- Change in net unrealized appreciation or depreciation........................... (104,551) (197,526) (7,035) (102,085) 29,412 --------- --------- -------- --------- --------- Net realized and unrealized gain (loss) on investments......................... (157,645) (395,059) (32,490) (230,198) (72,659) --------- --------- -------- --------- --------- NET INCREASE (DECREASE) RESULTING FROM OPERATIONS.................................. $(155,252) $(396,065) $(32,394) $(234,478) $ (76,329) ========= ========= ======== ========= =========
See Accompanying Notes to Financial Statements 90 STATEMENTS OF OPERATIONS - --------------------------------------------------------------------------------
REAL ESTATE STRATEGIC SHORT TERM EQUITY TECHNOLOGY VALUE BALANCED BOND FUND FUND FUND FUND FUND ------- ----- ---- -------- ------ NET INVESTMENT INCOME: Income: Interest.................................. $ 1,334 $ 40 $ 426 $ 28,696 $2,738 Dividends................................. 26,702 4 903 6,110 -- Foreign withholding tax on dividend income................................... -- -- -- -- -- ------- ------- ------- --------- ------ Total income............................. 28,036 44 1,329 34,806 2,738 ------- ------- ------- --------- ------ Expenses: Investment management fees................ 3,753 103 544 5,192 228 Transfer agent fees and expenses.......... 246 72 111 955 110 Shareholder servicing fees................ 504 16 26 429 10 Postage, printing, and other.............. 104 19 31 220 17 Custodian fees............................ 39 34 39 88 7 Registration and filing fees.............. 79 20 39 31 18 Legal, insurance, and audit fees.......... 29 26 26 46 24 Director fees............................. 5 -- 1 10 -- ------- ------- ------- --------- ------ Total expenses........................... 4,759 290 817 6,971 414 Fees paid indirectly...................... (7) (1) (2) (14) (2) Expense reimbursements.................... -- (116) -- -- (71) ------- ------- ------- --------- ------ Net expenses............................. 4,752 173 815 6,957 341 ------- ------- ------- --------- ------ Net investment income (loss)................ 23,284 (129) 514 27,849 2,397 ------- ------- ------- --------- ------ NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) from: Investment transactions................... (6,108) (4,782) (39) (61,040) 623 Foreign currency transactions............. -- -- -- -- -- ------- ------- ------- --------- ------ Net realized gain (loss)................. (6,108) (4,782) (39) (61,040) 623 ------- ------- ------- --------- ------ Change in net unrealized appreciation or depreciation on: Investments............................... 11,519 1,380 14,414 (51,965) 94 Translation of assets and liabilities in foreign currencies....................... -- -- -- -- -- ------- ------- ------- --------- ------ Change in net unrealized appreciation or depreciation........................... 11,519 1,380 14,414 (51,965) 94 ------- ------- ------- --------- ------ Net realized and unrealized gain (loss) on investments......................... 5,411 (3,402) 14,375 (113,005) 717 ------- ------- ------- --------- ------ NET INCREASE (DECREASE) RESULTING FROM OPERATIONS.................................. $28,695 $(3,531) $14,889 $(85,156) $3,114 ======= ======= ======= ========= ======
See Accompanying Notes to Financial Statements 91 STATEMENTS OF OPERATIONS - --------------------------------------------------------------------------------
FIXED NATIONAL OREGON COLUMBIA INCOME MUNICIPAL MUNICIPAL DAILY SECURITIES BOND BOND HIGH YIELD INCOME FUND FUND FUND FUND COMPANY ------- ------ ------- ------- ------- NET INVESTMENT INCOME: Income: Interest.................................. $27,819 $ 609 $24,962 $15,134 $52,623 Dividends................................. -- -- -- -- -- Foreign withholding tax on dividend income................................... -- -- -- -- -- ------- ----- ------- ------- ------- Total income............................. 27,819 609 24,962 15,134 52,623 ------- ----- ------- ------- ------- Expenses: Investment management fees................ 2,158 60 2,395 1,089 5,765 Transfer agent fees and expenses.......... 386 42 154 137 1,089 Shareholder servicing fees................ 121 -- 37 161 5 Postage, printing, and other.............. 82 14 72 48 292 Custodian fees............................ 38 2 28 21 209 Registration and filing fees.............. 37 12 14 60 46 Legal, insurance, and audit fees.......... 34 26 43 33 45 Director fees............................. 4 -- 5 2 12 ------- ----- ------- ------- ------- Total expenses........................... 2,860 156 2,748 1,551 7,463 Fees paid indirectly...................... (7) -- (4) (3) (70) Expense reimbursements.................... -- (78) -- -- -- ------- ----- ------- ------- ------- Net expenses............................. 2,853 78 2,744 1,548 7,393 ------- ----- ------- ------- ------- Net investment income (loss)................ 24,966 531 22,218 13,586 45,230 ------- ----- ------- ------- ------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) from: Investment transactions................... 6,420 83 2,447 (6,979) -- Foreign currency transactions............. -- -- -- -- -- ------- ----- ------- ------- ------- Net realized gain (loss)................. 6,420 83 2,447 (6,979) -- ------- ----- ------- ------- ------- Change in net unrealized appreciation or depreciation on: Investments............................... 1,195 (162) (3,897) 2,694 -- Translation of assets and liabilities in foreign currencies....................... -- -- -- -- -- ------- ----- ------- ------- ------- Change in net unrealized appreciation or depreciation........................... 1,195 (162) (3,897) 2,694 -- ------- ----- ------- ------- ------- Net realized and unrealized gain (loss) on investments......................... 7,615 (79) (1,450) (4,285) -- ------- ----- ------- ------- ------- NET INCREASE (DECREASE) RESULTING FROM OPERATIONS.................................. $32,581 $ 452 $20,768 $ 9,301 $45,230 ======= ===== ======= ======= =======
See Accompanying Notes to Financial Statements 91 STATEMENTS OF CHANGES IN NET ASSETS - -------------------------------------------------------------------------------- COLUMBIA FUNDS FOR THE YEAR ENDED DECEMBER 31, (IN THOUSANDS)
INTERNATIONAL COMMON STOCK FUND GROWTH FUND STOCK FUND 2001 2000 2001 2000 2001 2000 ---------- ---------- ---------- ---------- ---------- ---------- OPERATIONS: Net investment income (loss).......... $ 2,393 $ (528) $ (1,006) $ (3,975) $ 96 $ (418) Net realized gain (loss) from: Investment transactions............. (53,094) 77,923 (197,533) 181,942 (24,968) 22,823 Foreign currency transactions....... -- -- -- -- (487) (571) Change in net unrealized appreciation or depreciation on: Investments......................... (104,551) (134,130) (197,526) (347,199) (6,997) (78,760) Translation of assets and liabilities in foreign currencies........................ -- -- -- -- (38) 40 ---------- ---------- ---------- ---------- ---------- ---------- Net increase (decrease) resulting from operations.......................... (155,252) (56,735) (396,065) (169,232) (32,394) (56,886) DISTRIBUTIONS TO SHAREHOLDERS: From net investment income............ (2,384) -- -- -- -- -- From net realized gain from investment transactions and foreign currency transactions........................ (568) (98,504) (6,365) (227,212) -- (28,787) From return of capital................ -- -- -- -- (131) -- NET CAPITAL SHARE TRANSACTIONS......... (55,533) 90,463 (190,953) 154,932 (7,165) 21,766 ---------- ---------- ---------- ---------- ---------- ---------- Net increase (decrease) in net assets................................ (213,737) (64,776) (593,383) (241,512) (39,690) (63,907) NET ASSETS: Beginning of year..................... 895,134 959,910 1,919,227 2,160,739 175,316 239,223 ---------- ---------- ---------- ---------- ---------- ---------- End of year........................... $ 681,397 $ 895,134 $1,325,844 $1,919,227 $ 135,626 $ 175,316 ========== ========== ========== ========== ========== ========== Undistributed net investment income (loss) at end of year................. $ 7 $ -- $ -- $ -- $ (298) $ -- ========== ========== ========== ========== ========== ==========
FIXED INCOME BALANCED FUND SHORT TERM BOND FUND SECURITIES FUND 2001 2000 2001 2000 2001 2000 ---------- ---------- ---------- ---------- ---------- ---------- OPERATIONS: Net investment income................. $ 27,849 $ 29,487 $ 2,397 $ 1,807 $ 24,966 $ 24,636 Net realized gain (loss) from investment transactions............. (61,040) 34,216 623 (160) 6,420 (5,893) Change in net unrealized appreciation or depreciation on investments...... (51,965) (58,072) 94 826 1,195 21,661 ---------- ---------- ---------- ---------- ---------- ---------- Net increase (decrease) resulting from operations.......................... (85,156) 5,631 3,114 2,473 32,581 40,404 DISTRIBUTIONS TO SHAREHOLDERS: From net investment income............ (28,272) (29,675) (2,397) (1,807) (25,535) (24,636) From net realized gain from investment transactions........................ -- (60,990) (108) -- -- -- NET CAPITAL SHARE TRANSACTIONS......... (29,677) 170,948 26,465 (2,882) 79,898 (34,116) ---------- ---------- ---------- ---------- ---------- ---------- Net increase (decrease) in net assets................................ (143,105) 85,914 27,074 (2,216) 86,944 (18,348) NET ASSETS: Beginning of year..................... 1,126,854 1,040,940 35,856 38,072 378,799 397,147 ---------- ---------- ---------- ---------- ---------- ---------- End of year........................... $ 983,749 $1,126,854 $ 62,930 $ 35,856 $ 465,743 $ 378,799 ========== ========== ========== ========== ========== ========== Undistributed net investment income (loss) at end of year................. $ (423) $ -- $ -- $ -- $ (569) $ -- ========== ========== ========== ========== ========== ==========
* For the period October 27, 2000 (inception of operations) through December 31, 2000. See Accompanying Notes to Financial Statements 92 STATEMENTS OF CHANGES IN NET ASSETS - --------------------------------------------------------------------------------
REAL ESTATE SPECIAL FUND SMALL CAP FUND EQUITY FUND 2001 2000 2001 2000 2001 2000 ---------- ---------- ---------- ---------- ---------- ---------- OPERATIONS: Net investment income (loss).......... $ (4,280) $ (4,293) $ (3,670) $ (1,988) $ 23,284 $ 17,385 Net realized gain (loss) from: Investment transactions............. (128,113) 228,792 (102,071) 34,983 (6,108) (2,132) Foreign currency transactions....... -- -- -- -- -- -- Change in net unrealized appreciation or depreciation on: Investments......................... (102,085) (103,303) 29,412 (30,358) 11,519 67,537 Translation of assets and liabilities in foreign currencies........................ -- -- -- -- -- -- ---------- ---------- ---------- ---------- ---------- ---------- Net increase (decrease) resulting from operations.......................... (234,478) 121,196 (76,329) 2,637 28,695 82,790 DISTRIBUTIONS TO SHAREHOLDERS: From net investment income............ -- -- -- -- (21,222) (16,042) From net realized gain from investment transactions and foreign currency transactions........................ (36,111) (267,238) -- (53,611) -- -- From return of capital................ -- -- -- -- (2,074) (1,341) NET CAPITAL SHARE TRANSACTIONS......... (38,865) 323,245 175,325 279,570 179,427 129,641 ---------- ---------- ---------- ---------- ---------- ---------- Net increase (decrease) in net assets................................ (309,454) 177,203 98,996 228,596 184,826 195,048 NET ASSETS: Beginning of year..................... 1,095,525 918,322 518,970 290,374 436,764 241,716 ---------- ---------- ---------- ---------- ---------- ---------- End of year........................... $ 786,071 $1,095,525 $ 617,966 $ 518,970 $ 621,590 $ 436,764 ========== ========== ========== ========== ========== ========== Undistributed net investment income (loss) at end of year................. $ -- $ -- $ -- $ -- $ -- $ -- ========== ========== ========== ========== ========== ==========
NATIONAL MUNICIPAL OREGON MUNICIPAL BOND FUND BOND FUND HIGH YIELD FUND 2001 2000 2001 2000 2001 2000 ---------- ---------- ---------- ---------- ---------- ---------- OPERATIONS: Net investment income................. $ 531 $ 506 $ 22,218 $ 20,398 $ 13,586 $ 6,353 Net realized gain (loss) from investment transactions............. 83 (61) 2,447 320 (6,979) (1,570) Change in net unrealized appreciation or depreciation on investments...... (162) 690 (3,897) 20,124 2,694 (1,057) ---------- ---------- ---------- ---------- ---------- ---------- Net increase (decrease) resulting from operations.......................... 452 1,135 20,768 40,842 9,301 3,726 DISTRIBUTIONS TO SHAREHOLDERS: From net investment income............ (533) (506) (22,201) (20,398) (13,866) (6,353) From net realized gain from investment transactions........................ (26) -- (1,100) (286) -- -- NET CAPITAL SHARE TRANSACTIONS......... 2,978 134 57,627 6,467 145,984 28,524 ---------- ---------- ---------- ---------- ---------- ---------- Net increase (decrease) in net assets................................ 2,871 763 55,094 26,625 141,419 25,897 NET ASSETS: Beginning of year..................... 10,898 10,135 436,544 409,919 97,575 71,678 ---------- ---------- ---------- ---------- ---------- ---------- End of year........................... $ 13,769 $ 10,898 $ 491,638 $ 436,544 $ 238,994 $ 97,575 ========== ========== ========== ========== ========== ========== Undistributed net investment income (loss) at end of year................. $ (2) $ -- $ 17 $ -- $ (280) $ -- ========== ========== ========== ========== ========== ==========
See Accompanying Notes to Financial Statements 93 STATEMENTS OF CHANGES IN NET ASSETS - --------------------------------------------------------------------------------
TECHNOLOGY FUND STRATEGIC VALUE FUND 2001 2000* 2001 2000* ---------- ---------- ---------- ---------- OPERATIONS: Net investment income (loss).......... $ (129) $ 4 $ 514 $ 13 Net realized gain (loss) from: Investment transactions............. (4,782) (215) (39) (20) Foreign currency transactions....... -- -- -- -- Change in net unrealized appreciation or depreciation on: Investments......................... 1,380 (239) 14,414 847 Translation of assets and liabilities in foreign currencies........................ -- -- -- -- ---------- ---------- ---------- ---------- Net increase (decrease) resulting from operations.......................... (3,531) (450) 14,889 840 DISTRIBUTIONS TO SHAREHOLDERS: From net investment income............ -- (4) (502) (13) From net realized gain from investment transactions and foreign currency transactions........................ -- -- -- -- From return of capital................ -- -- -- -- NET CAPITAL SHARE TRANSACTIONS......... 9,589 4,781 115,591 8,699 ---------- ---------- ---------- ---------- Net increase (decrease) in net assets................................ 6,058 4,327 129,978 9,526 NET ASSETS: Beginning of year..................... 4,327 -- 9,526 -- ---------- ---------- ---------- ---------- End of year........................... $ 10,385 $ 4,327 $ 139,504 $ 9,526 ========== ========== ========== ========== Undistributed net investment income (loss) at end of year................. $ -- $ -- $ 1 $ -- ========== ========== ========== ==========
COLUMBIA DAILY INCOME COMPANY 2001 2000 ---------- ---------- OPERATIONS: Net investment income................. $ 45,230 $ 68,891 Net realized gain (loss) from investment transactions............. -- -- Change in net unrealized appreciation or depreciation on investments...... -- -- ---------- ---------- Net increase (decrease) resulting from operations.......................... 45,230 68,891 DISTRIBUTIONS TO SHAREHOLDERS: From net investment income............ (45,230) (68,891) From net realized gain from investment transactions........................ -- -- NET CAPITAL SHARE TRANSACTIONS......... 55,384 32,862 ---------- ---------- Net increase (decrease) in net assets................................ 55,384 32,862 NET ASSETS: Beginning of year..................... 1,198,151 1,165,289 ---------- ---------- End of year........................... $1,253,535 $1,198,151 ========== ========== Undistributed net investment income (loss) at end of year................. $ -- $ -- ========== ==========
See Accompanying Notes to Financial Statements 93 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- NOTE 1 -- SIGNIFICANT ACCOUNTING POLICIES The Columbia Funds (the "Funds") consist of the following: Columbia Common Stock Fund, Inc. Columbia Growth Fund, Inc. Columbia International Stock Fund, Inc. Columbia Special Fund, Inc. Columbia Small Cap Fund, Inc. Columbia Real Estate Equity Fund, Inc. Columbia Technology Fund, Inc. Columbia Strategic Value Fund, Inc. Columbia Balanced Fund, Inc. Columbia Short Term Bond Fund, Inc. Columbia Fixed Income Securities Fund, Inc. Columbia National Municipal Bond Fund, Inc. Columbia Oregon Municipal Bond Fund, Inc. Columbia High Yield Fund, Inc. Columbia Daily Income Company All Funds are open-end investment companies registered under the Investment Company Act of 1940, as amended, and are diversified except the Technology and Oregon Municipal Bond Funds, which are non-diversified. Following is a summary of significant accounting policies, in conformity with accounting principles generally accepted in the United States of America, which are consistently followed by each Fund in the preparation of its financial statements. INVESTMENT VALUATION. Equity securities are valued based on the last sale prices reported by the principal securities exchanges on which the investments are traded or, in the absence of recorded sales, at the closing bid prices on such exchanges or over-the-counter markets. Fixed income securities are valued based on market values as quoted by dealers who are market makers in these securities, by independent pricing services, or by the adviser using a methodology approved by the Board of Directors. Investment securities with less than 60 days to maturity when purchased and all securities held by Columbia Daily Income Company, are valued at amortized cost, which approximates market value. Securities for which market quotations are not readily available will be valued at fair market value as determined in good faith under procedures established by and under the general supervision of the Board of Directors of each Fund. REPURCHASE AGREEMENTS. The Funds may engage in repurchase agreement transactions. The Funds, through their custodians, receive delivery of underlying securities collateralizing repurchase agreements. The Funds' investment adviser determines that the value of the underlying securities is at all times at least equal to the resale price. In the event of default or bankruptcy by the other party to the agreement, realization and/or retention of the collateral may be subject to legal proceedings. FINANCIAL FUTURES CONTRACTS. Certain Funds may invest in financial futures contracts solely for the purpose of hedging its existing portfolio securities, or securities that the fund intends to purchase, against fluctuations in fair value caused by changes in prevailing market interest rates. Upon entering into a financial futures contract, the fund is required to pledge to the broker an amount of cash, U.S. government securities, or other assets, equal to a certain percentage of the contract amount (initial margin deposit). Subsequent payments, known as "variation margin," are made or received by the fund each day, depending on the daily fluctuations in the fair value of the underlying security. The fund recognizes a gain or loss equal to the daily variation margin. Should market conditions move unexpectedly, the fund may not achieve the anticipated benefits of the financial futures contracts and may realize a loss. The use of futures transactions involves the risk of imperfect correlation in movements in the price of futures contracts interest rates, and the underlying assets. The daily changes in contract value are recorded as unrealized gains or losses and the fund recognizes the realized gain or loss when the contract is closed. OPTION CONTRACTS. Certain Funds may engage in option contracts. A fund may use option contracts to manage its exposure to the stock and bond markets and to fluctuations in interest rates and currency values. These amounts reflect each contract's exposure to the 94 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- underlying instrument. Buying puts and writing calls tends to decrease a fund's exposure to the underlying instruments or to hedge other fund investments. Upon the purchase of a put option or a call option by a fund, the premium paid is recorded as an investment, the value of which is marked to market daily. When a purchased option expires, the fund will realize a loss in the amount of the cost of the option. When a fund enters into a closing sale transaction, the fund will realize a gain or loss depending on whether the sale proceeds from the closing sale transaction are greater or less than the cost of the option. When a fund exercises a put option, it will realize a gain or loss from the sale of the underlying security and the proceeds from such sale will be decreased by the premium originally paid. When a fund exercises a call option, the cost of the security which the fund purchases upon exercise will be increased by the premium originally paid. When a fund writes a call option or a put option, an amount equal to the premium received by the fund is recorded as a liability, the value of which is marked to market daily. When a written option expires, the fund will realize a gain equal to the amount of the premium received. When a fund enters into a closing purchase transaction, the fund will realize a gain (or loss if the cost of the closing purchase transaction exceeds the premium received when the option is sold) without regard to any unrealized gain or loss on the underlying security, and the liability related to such option is eliminated. When a written call option is exercised, the fund will realize a gain or loss from the sale of the underlying security and the proceeds from such sale are increased by the premium originally received. When a written put option is exercised, the amount of the premium originally received will reduce the cost of the security that the fund purchases upon exercise. INVESTMENT TRANSACTIONS. Investment transactions are accounted for as of the date the investments are purchased or sold. Net realized gains and losses are determined on the identified cost basis, which is also used for federal income tax purposes. Securities purchased on a when-issued or forward-delivery basis may be settled a month or more after trade date; interest income is not accrued until settlement date. Each fund segregates liquid assets with a current value at least equal to the amount of its when-issued purchase commitments until settlement date. INVESTMENT INCOME AND EXPENSES. Dividend income less foreign taxes withheld (if any) is recorded on the ex-dividend date. Certain dividends from foreign securities are recorded as soon as a fund is informed of the dividend if such information is obtained subsequent to the ex-dividend date. Interest income is recorded on the accrual basis and includes accretion of discounts or amortization of premiums. Expenses are recorded on the accrual basis and each fund bears expenses incurred specifically on its behalf as well as a portion of general expenses incurred on behalf of all funds. Expenses for "fees paid indirectly" reflect earnings credits on uninvested cash balances used to reduce a fund's custodian charges. FORWARD CURRENCY EXCHANGE CONTRACTS. Certain funds may enter into forward currency exchange contracts in connection with planned purchases or sales of securities or to hedge the U.S. dollar value of the portfolio securities denominated in a foreign currency. Contracts are valued at the prevailing forward exchange rate of the underlying currencies. The gain or loss arising from the difference between the original contract price and the closing price of such contract is included in the net realized gains or losses from foreign currency transactions. Fluctuations in the value of forward currency contracts are recorded for financial reporting purposes as unrealized gains or losses. The fund could be exposed to risks if counterparties to the forward contracts are unable to meet the terms of their contracts or if the value of the foreign currency changes unfavorably. The effect of any change in the value of a hedged foreign currency would be offset by the corresponding change (resulting from a change in exchange rates) in value of the securities denominated in that currency. For the International Stock Fund net realized gains arising from such transactions for the year ended December 31, 2001, amounted to $36,053 and are included in realized gains from foreign currency 95 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- NOTE 1 -- SIGNIFICANT ACCOUNTING POLICIES (CONT.) transactions. As of December 31, 2001 the Funds had no outstanding forward currency contracts. FOREIGN CURRENCY TRANSLATIONS. The books and records of the International Stock Fund are maintained in U.S. dollars. Foreign currencies, investments and other assets and liabilities of the Funds are translated into U.S. dollars at the daily rates of exchange on the valuation date. Purchases and sales of investment securities, dividend and interest income and certain expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. The International Stock Fund does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices on investments held. Such fluctuations are included with the net realized and unrealized gain or loss from investments. Reported net realized foreign currency gains or losses arise from the sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalents of the amounts actually received or paid. Net unrealized foreign exchange gains or losses arise from changes in the value of assets and liabilities, other than investments in securities, resulting from changes in the exchange rate. USE OF ESTIMATES. The preparation of the financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends from net investment income of the Common Stock, Real Estate Equity and Balanced Funds are declared and paid quarterly. Dividends from net investment income of the Growth, International Stock, Special, Small Cap, Technology and Strategic Value Funds are declared and paid annually. Dividends from net investment income of the Short Term Bond, Fixed Income Securities, National Municipal Bond, Oregon Municipal Bond, and High Yield Funds 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. 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 the requirements of the Internal Revenue Code. FEDERAL INCOME TAXES. Each fund intends to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies by distributing substantially all taxable net investment income and net realized gains to its shareholders in a manner that results in no tax to the Funds. Therefore, no federal income or excise tax provision is required. FOREIGN CAPITAL GAINS TAXES. Realized gains in certain countries may be subject to foreign taxes at the fund level, at rates ranging from approximately 10% to 30%. The Funds provide for such foreign taxes on net realized and unrealized gains at the appropriate rate for each jurisdiction. PREMIUM AND DISCOUNT AMORTIZATION/PAYDOWN GAINS LOSSES. In November 2000, a revised AICPA Audit and Accounting Guide, Audits of Investment Companies, was issued, and is effective for fiscal years beginning after December 15, 2000. The revised Guide requires the Funds to amortize premium and discount on all fixed income securities and classify gains and losses realized on prepayments received on mortgage-backed securities (paydown gains and losses) previously included in realized gain/loss as part of interest income. Upon initial adoption, the Funds adjusted the cost of their fixed income securities by the cumulative amount of amortization that would have been recognized had amortization been in effect from the purchase date of 96 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- each holding with a corresponding reclassification between unrealized appreciation on investments and undistributed income. Adoption of these accounting principles does not affect the Funds' net asset value or distributions, but changes the classification of certain amounts between interest income and realized and unrealized gain/loss in the Statements of Operations. The cumulative effect to the Funds resulting from the adoption of premium and discount amortization and recognition of paydown gains and losses as part of interest income on the financial statements is as follows:
AS OF FOR THE YEAR ENDED JANUARY 1, 2001 DECEMBER 31, 2001 --------------- ---------------------------------- NET NET NET COST OF INVESTMENT UNREALIZED REALIZED INVESTMENTS INCOME GAINS GAINS --------------- ---------- ---------- -------- Increase (decrease) Balanced Fund........ $(424,616) $(374,926) $ 52,200 $322,726 Short Term Bond Fund................ -- 14,711 -- (14,711) Fixed Income Securities Fund..... (340,884) (428,509) 289,082 139,427 National Municipal Bond Fund........... 3,143 (1,647) 1,378 269 Oregon Municipal Bond Fund................ 120,220 16,667 (22,738) 6,071 High Yield Fund...... (214,213) (279,889) 56,380 223,509
OTHER. As of December 31, 2001, The International Stock Fund held 97% of its net assets in equity securities of companies in countries other than the United States. While the Fund's investments are not limited as to market capitalization, 94% of the portfolio, based on market value, were in companies considered to be large and well established, based on standards of the applicable country or foreign market. The High Yield Fund invests in lower rated debt securities, which may be more susceptible to adverse economic conditions than investment grade holdings. These securities are often subordinated to the prior claims of other senior lenders, and uncertainties exist as to an issuer's ability to meet principal and interest payments. As of December 31, 2001, 2% of the Fund's debt securities were rated Baa, 49% were rated Ba, and 49% were rated B, as rated by Moody's Investors Service, Inc. The Fund currently holds Flooring America, Inc., 12.75% Senior Subordinate Notes, Series B, due 10/15/2002, which represents less than 1% of the Fund's portfolio. Flooring America filed a bankruptcy petition for reorganization on June 15, 2000 and effective on that date, the Fund stopped accruing income on the bonds. Prior to the bankruptcy petition the Fund received payments for interest and a partial tender of the Bonds. Flooring America has filed a petition for return of these payments. The Fund has joined other bondholders and is defending the litigation. If the Fund is required to return the payments, the potential loss to the Fund as of December 31, 2001, is approximately $0.01 per share. A loss reserve has been established for a portion of interest and principal payments that the Fund received. 97 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- NOTE 2 -- INVESTMENT TRANSACTIONS During the year ended December 31, 2001, purchases and sales of long-term securities, and net realized gains (losses) excluding U.S. Government securities, were as follows:
REALIZED PURCHASES SALES GAINS (LOSSES) -------------- -------------- -------------- Common Stock Fund........................................... $ 821,585,520 $ 894,260,967 $ (53,093,579) Growth Fund................................................. 1,794,789,317 2,009,103,776 (197,532,848) International Stock Fund.................................... 187,837,428 191,994,130 (24,967,789) Special Fund................................................ 1,488,367,851 1,492,479,714 (128,113,140) Small Cap Fund.............................................. 789,345,394 609,408,234 (102,071,551) Real Estate Equity Fund..................................... 326,688,363 188,664,335 (6,107,580) Technology Fund............................................. 47,955,203 38,252,729 (4,781,663) Strategic Value Fund........................................ 255,348,126 165,359,773 (39,305) Balanced Fund............................................... 869,451,352 902,810,963 (63,494,002) Short Term Bond Fund........................................ 46,395,596 27,137,394 488,349 Fixed Income Securities Fund................................ 219,614,849 199,608,697 4,685,694 National Municipal Bond Fund................................ 4,642,478 2,317,858 82,545 Oregon Municipal Bond Fund.................................. 112,119,603 62,576,033 2,447,215 High Yield Fund............................................. 230,447,631 103,657,112 (6,978,717)
During the year ended December 31, 2001, purchases and sales of long-term securities, and net realized gains of U.S. Government securities were as follows:
REALIZED PURCHASES SALES GAINS -------------- -------------- -------------- Balanced Fund............................................... $ 232,133,723 $ 233,636,701 $ 2,453,452 Short Term Bond Fund........................................ 31,267,928 29,020,945 134,187 Fixed Income Securities Fund................................ 288,599,541 248,160,849 1,734,312
During the year ended December 31, 2001, written option transactions for the Special Fund were as follows:
PUTS CALLS ------------------------------- ------------------------------- NUMBER OF NUMBER OF CONTRACTS PREMIUMS CONTRACTS PREMIUMS ----------- ----------- ----------- ----------- Outstanding at December 31, 2000.................... 3,250 $ 4,033,250 3,250 $ 3,988,492 Options written..................................... -- -- -- -- Options expired..................................... (3,150) (3,919,200) (3,150) (3,882,546) Options closed...................................... (100) (114,050) (100) (105,946) Options exercised................................... -- -- -- -- ----------- ----------- ----------- ----------- Outstanding at December 31, 2001.................... -- $ -- -- $ -- =========== =========== =========== ===========
NOTE 3 -- FEDERAL INCOME TAX Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. These differences are primarily due to differing treatments for foreign currency transactions, net operating losses, deferral of losses from wash sales, passive foreign investment companies (PFIC), post-October losses, non-taxable dividends, and discount accretion/premium amortization on debt securities. 98 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- NOTE 3 -- FEDERAL INCOME TAX (CONT.) As of December 31, 2001, for federal income tax purposes, the unused capital loss carryforwards that expire in 2007, 2008 and 2009, post-October losses that were deferred to January 1, 2002, and unrealized appreciation (depreciation) excluding short-term investments, were as follows:
NET CAPITAL POST OCTOBER NET LOSS LOSSES DEFERRED UNREALIZED UNREALIZED APPRECIATION CARRYFORWARDS TO JANUARY 1, 2002 APPRECIATION (DEPRECIATION) (DEPRECIATION) ------------- ------------------ ------------ -------------- -------------- Common Stock Fund....................... $ 52,039,637 $ 3,544,311 $113,531,414 $(26,859,904) $ 86,671,510 Growth Fund............................. 162,540,209 -- 268,959,428 (67,313,457) 201,645,971 International Stock Fund................ 23,627,839 4,101,263 9,205,481 (7,755,458) 1,450,023 Special Fund............................ 110,043,273 9,195,303 131,920,036 (28,900,018) 103,020,018 Small Cap Fund.......................... 117,057,825 1,091,352 102,015,863 (13,192,703) 88,823,160 Real Estate Equity Fund................. 1,271,327 11,961,083 74,888,254 (5,174,244) 69,714,010 Technology Fund......................... 4,393,873 -- 1,121,789 (583,390) 538,399 Strategic Value Fund.................... -- -- 16,134,671 (1,296,678) 14,837,993 Balanced Fund........................... 65,697,715 4,186,321 106,094,867 (25,511,194) 80,583,673 Short Term Bond Fund.................... -- -- 922,821 (266,640) 656,181 Fixed Income Securities Fund............ 8,804,253 -- 10,640,332 (1,989,891) 8,650,441 National Municipal Bond Fund............ -- 8,424 249,109 (123,383) 125,726 Oregon Municipal Bond Fund.............. -- -- 11,636,116 (4,765,853) 6,870,263 High Yield Fund......................... 9,118,260 609,665 3,598,450 (4,657,420) (1,058,970)
As of December 31, 2001, for federal tax purposes, undistributed ordinary income was: Common Stock Fund -- $6,773, Strategic Value Fund -- $304,092, Balanced Fund -- $27,606, Short Term Bond Fund -- $17,851, Oregon Municipal Bond Fund -- $43,797. Undistributed long-term capital gains were: Strategic Value Fund -- $70,284, Oregon Municipal Bond Fund -- $1,269,871. During the year ended December 31, 2001, capital loss carryovers utilized from prior years were: Real Estate Equity Fund -- $6,214,513, Short Term Bond Fund -- $330,002, Fixed Income Securities Fund -- $6,106,633, and National Municipal Bond Fund -- $47,911. During the year ended December 31, 2001, the following distributions were designated as long-term gains: Common Stock Fund -- $566,422, Growth Fund -- $6,363,209, Special Fund -- $36,110,869, National Municipal Bond Fund -- $22,027, Oregon Municipal Bond Fund -- $1,079,947. For the year ended December 31, 2001, permanent items identified and reclassified among the components of net assets are as follows:
UNDISTRIBUTED UNDISTRIBUTED NET INVESTMENT NET REALIZED PAID-IN INCOME (LOSS) GAINS (LOSSES) CAPITAL -------------- -------------- ----------- Common Stock Fund........................................... $ (2,552) $ 2,552 $ -- Growth Fund................................................. 1,006,495 2,112 (1,008,607) International Stock Fund.................................... (225,288) 486,952 (261,664) Special Fund................................................ 4,280,083 1,796 (4,281,879) Small Cap Fund.............................................. 3,669,866 50,543 (3,720,409) Real Estate Equity Fund..................................... 12,056 4,909,551 (4,921,607) Technology Fund............................................. 129,446 -- (129,446) Strategic Value Fund........................................ (9,613) 9,613 -- Short Term Bond Fund........................................ -- (297) 297 National Municipal Bond Fund................................ -- 133 (133) Oregon Municipal Bond Fund.................................. -- 1,157 (1,157)
99 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- NOTE 4 -- CAPITAL STOCK ACTIVITY (IN THOUSANDS)
COMMON STOCK FUND GROWTH FUND INTERNATIONAL STOCK FUND 2001 2000 2001 2000 2001 2000 ------------ ------------ ------------ ------------ ------------ ------------ SHARES: Shares sold............... 10,491 9,768 6,698 9,514 10,570 8,814 Shares reinvested for dividends and distributions........... 145 3,643 191 5,075 11 1,893 ------------ ------------ ------------ ------------ ------------ ------------ 10,636 13,411 6,889 14,589 10,581 10,707 Shares redeemed........... (13,300) (9,840) (12,490) (10,871) (11,177) (9,327) ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease)... (2,664) 3,571 (5,601) 3,718 (596) 1,380 ============ ============ ============ ============ ============ ============ AMOUNTS: Sales..................... $ 223,544(1) $ 286,558 $ 224,937 $ 486,166 $ 137,761 $ 176,958 Reinvestment of dividends and distributions....... 2,905 91,883 6,121 215,989 129 27,529 ------------ ------------ ------------ ------------ ------------ ------------ 226,449 378,441 231,058 702,155 137,890 204,487 Less redemptions.......... (281,982) (287,978) (422,011) (547,223) (145,055) (182,721) ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease)... $ (55,533) $ 90,463 $ (190,953) $ 154,932 $ (7,165) $ 21,766 ============ ============ ============ ============ ============ ============ Capital stock authorized.............. 100 million 100 million 100 million Par value................. no par $ 0.01 no par
SHORT TERM FIXED INCOME BALANCED FUND BOND FUND SECURITIES FUND 2001 2000 2001 2000 2001 2000 ------------ ------------ ------------ ------------ ------------ ------------ SHARES: Shares sold............... 10,632 15,974 6,668 2,376 18,022 8,755 Shares reinvested for dividends and distributions........... 1,349 3,707 276 205 1,807 1,721 ------------ ------------ ------------ ------------ ------------ ------------ 11,981 19,681 6,944 2,581 19,829 10,476 Shares redeemed........... (13,467) (12,719) (3,873) (2,933) (13,794) (13,214) ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease)............ (1,486) 6,962 3,071 (352) 6,035 (2,738) ============ ============ ============ ============ ============ ============ AMOUNTS: Sales..................... $ 229,671 $ 398,071 $ 57,224 $ 19,516 $ 237,932 $ 109,490 Reinvestment of dividends and distributions....... 27,875 89,921 2,359 1,688 23,906 21,530 ------------ ------------ ------------ ------------ ------------ ------------ 257,546 487,992 59,583 21,204 261,838 131,020 Less redemptions.......... (287,223) (317,044) (33,118) (24,086) (181,940) (165,136) ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease)... $ (29,677) $ 170,948 $ 26,465 $ (2,882) $ 79,898 $ (34,116) ============ ============ ============ ============ ============ ============ Capital stock authorized.............. 100 million 100 million 200 million Par value................. no par $ 0.01 $ 0.01
(1) Includes $17,070 of securities received in an in-kind transfer. (2) For the period October 27, 2000 (inception of operations) through December 31, 2000. 100 NOTES TO FINANCIAL STATEMENTS - --------------------------------------------------------------------------------
REAL ESTATE SPECIAL FUND SMALL CAP FUND EQUITY FUND 2001 2000 2001 2000 2001 2000 ----------- ----------- ----------- ----------- ----------- ----------- SHARES: Shares sold............... 10,828 14,843 23,701 19,208 19,257 19,858 Shares reinvested for dividends and distributions........... 1,813 9,709 -- 1,960 1,288 1,001 ----------- ----------- ----------- ----------- ----------- ----------- 12,641 24,552 23,701 21,168 20,545 20,859 Shares redeemed........... (14,684) (13,081) (15,927) (11,761) (10,495) (13,039) ----------- ----------- ----------- ----------- ----------- ----------- Net increase (decrease)... (2,043) 11,471 7,774 9,407 10,050 7,820 =========== =========== =========== =========== =========== =========== AMOUNTS: Sales..................... $ 233,730 $ 519,898 $ 523,951 $ 586,333 $ 342,012 $ 326,388 Reinvestment of dividends and distributions....... 35,254 258,830 -- 51,634 22,872 16,814 ----------- ----------- ----------- ----------- ----------- ----------- 268,984 778,728 523,951 637,967 364,884 343,202 Less redemptions.......... (307,849) (455,483) (348,626) (358,397) (185,457) (213,561) ----------- ----------- ----------- ----------- ----------- ----------- Net increase (decrease)... $ (38,865) $ 323,245 $ 175,325 $ 279,570 $ 179,427 $ 129,641 =========== =========== =========== =========== =========== =========== Capital stock authorized.............. 100 million 100 million 100 million Par value................. $ 0.01 no par no par
NATIONAL MUNICIPAL OREGON MUNICIPAL BOND FUND BOND FUND HIGH YIELD FUND 2001 2000 2001 2000 2001 2000 ----------- ----------- ----------- ----------- ----------- ----------- SHARES: Shares sold............... 648 363 12,007 7,011 34,218 7,960 Shares reinvested for dividends and distributions........... 51 43 1,491 1,363 1,452 613 ----------- ----------- ----------- ----------- ----------- ----------- 699 406 13,498 8,374 35,670 8,573 Shares redeemed........... (399) (388) (8,799) (7,836) (19,588) (5,400) ----------- ----------- ----------- ----------- ----------- ----------- Net increase (decrease)............ 300 18 4,699 538 16,082 3,173 =========== =========== =========== =========== =========== =========== AMOUNTS: Sales..................... $ 6,425 $ 3,420 $ 147,270 $ 82,023 $ 308,627 $ 72,120 Reinvestment of dividends and distributions....... 508 409 18,269 15,992 13,034 5,546 ----------- ----------- ----------- ----------- ----------- ----------- 6,933 3,829 165,539 98,015 321,661 77,666 Less redemptions.......... (3,955) (3,695) (107,912) (91,548) (175,677) (49,142) ----------- ----------- ----------- ----------- ----------- ----------- Net increase (decrease)... $ 2,978 $ 134 $ 57,627 $ 6,467 $ 145,984 $ 28,524 =========== =========== =========== =========== =========== =========== Capital stock authorized.............. 100 million 100 million 100 million Par value................. $ 0.01 no par no par
(1) Includes $17,070 of securities received in an in-kind transfer. (2) For the period October 27, 2000 (inception of operations) through December 31, 2000. 101 NOTES TO FINANCIAL STATEMENTS - --------------------------------------------------------------------------------
TECHNOLOGY FUND STRATEGIC VALUE FUND 2001 2000(2) 2001 2000(2) ----------- ----------- ----------- ----------- SHARES: Shares sold............... 2,783 530 13,572 850 Shares reinvested for dividends and distributions........... -- 1 34 1 ----------- ----------- ----------- ----------- 2,783 531 13,606 851 Shares redeemed........... (1,591) (30) (4,847) (3) ----------- ----------- ----------- ----------- Net increase (decrease)... 1,192 501 8,759 848 =========== =========== =========== =========== AMOUNTS: Sales..................... $ 18,876 $ 5,054 $ 178,940 $ 8,719 Reinvestment of dividends and distributions....... -- 4 500 13 ----------- ----------- ----------- ----------- 18,876 5,058 179,440 8,732 Less redemptions.......... (9,287) (277) (63,849) (33) ----------- ----------- ----------- ----------- Net increase (decrease)... $ 9,589 $ 4,781 $ 115,591 $ 8,699 =========== =========== =========== =========== Capital stock authorized.............. 100 million 100 million Par value................. no par no par
COLUMBIA DAILY INCOME COMPANY 2001 2000 ----------- ----------- SHARES: Shares sold............... 1,507,707 1,917,314 Shares reinvested for dividends and distributions........... 45,211 68,861 ----------- ----------- 1,552,918 1,986,175 Shares redeemed........... (1,497,534) (1,953,313) ----------- ----------- Net increase (decrease)............ 55,384 32,862 =========== =========== AMOUNTS: Sales..................... $ 1,507,707 $ 1,917,314 Reinvestment of dividends and distributions....... 45,211 68,861 ----------- ----------- 1,552,918 1,986,175 Less redemptions.......... (1,497,534) (1,953,313) ----------- ----------- Net increase (decrease)... $ 55,384 $ 32,862 =========== =========== Capital stock authorized.............. 2 billion Par value................. $ 0.001
(1) Includes $17,070 of securities received in an in-kind transfer. (2) For the period October 27, 2000 (inception of operations) through December 31, 2000. 101 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- NOTE 5 -- TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES The amounts of fees and expenses described below are shown on each Fund's statement of operations. Columbia Funds Management Company (CFMC) manages each Fund and Columbia Trust Company (CTC) is the transfer and shareholder servicing agent. CFMC and CTC are indirect wholly owned subsidiaries of FleetBoston Financial Corporation, a publicly owned multi-bank holding company registered under the Bank Holding Company Act of 1956. Investment management fees were paid by each Fund to CFMC. The fees are based on the following annual rates of average daily net assets:
FEES ON FEES ON FEES ON FEES ON NET ASSETS NET ASSETS NET ASSETS NET ASSETS FIRST NEXT NEXT EXCEEDING $200 MILLION $300 MILLION $500 MILLION $1 BILLION ------------ ------------ ------------ ------------ Common Stock Fund.......................................... 0.60 of 1% 0.60 of 1% 0.60 of 1% 0.60 of 1% Growth Fund................................................ 0.75 of 1% 0.625 of 1% 0.50 of 1% 0.50 of 1% International Stock Fund................................... 1.00 of 1% 1.00 of 1% 1.00 of 1% 1.00 of 1% Special Fund............................................... 1.00 of 1% 1.00 of 1% 0.75 of 1% 0.75 of 1% Small Cap Fund............................................. 1.00 of 1% 1.00 of 1% 1.00 of 1% 1.00 of 1% Real Estate Equity Fund.................................... 0.75 of 1% 0.75 of 1% 0.75 of 1% 0.75 of 1% Technology Fund............................................ 1.00 of 1% 1.00 of 1% 1.00 of 1% 1.00 of 1% Strategic Value Fund....................................... 0.75 of 1% 0.75 of 1% 0.75 of 1% 0.75 of 1% Balanced Fund.............................................. 0.50 of 1% 0.50 of 1% 0.50 of 1% 0.50 of 1% Short Term Bond Fund....................................... 0.50 of 1% 0.50 of 1% 0.50 of 1% 0.50 of 1% Fixed Income Securities Fund............................... 0.50 of 1% 0.50 of 1% 0.50 of 1% 0.50 of 1% National Municipal Bond Fund............................... 0.50 of 1% 0.50 of 1% 0.50 of 1% 0.50 of 1% Oregon Municipal Bond Fund................................. 0.50 of 1% 0.50 of 1% 0.50 of 1% 0.50 of 1% High Yield Fund............................................ 0.60 of 1% 0.60 of 1% 0.60 of 1% 0.60 of 1% Columbia Daily Income Company.............................. 0.50 of 1% 0.50 of 1% 0.45 of 1% 0.40 of 1%
Directors' fees and expenses were paid directly by each Fund to directors having no affiliation with the Funds other than in their capacity as directors. Other officers and directors received no compensation from the Funds. Transfer agent fees were paid by each Fund to CTC for services incidental to issuance and transfer of shares, maintaining shareholder lists, and issuing and mailing distributions and reports. The Funds also paid CTC for certain direct shareholder servicing and accounting costs. For the year ended December 31, 2001, CFMC voluntarily agreed to reimburse expenses, after fees paid indirectly, in excess of 1.68% for the Technology Fund. For the three years commencing November 1, 2000 and ending October 31, 2003, CFMC has contractually agreed to reimburse expenses, after fees paid indirectly, in excess of 0.75% for the Short Term Bond Fund. For the year ended December 31, 2001, CFMC contractually agreed to reimburse expenses, after fees paid indirectly, in excess of 0.65% for the National Municipal Bond Fund. 102 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- NOTE 6 -- DIRECTORS AND OFFICERS (UNAUDITED) Interested Directors & Principal Officers:*
NUMBER OF PORTFOLIOS OTHER POSITION(S) TERM OF OFFICE IN FUND COMPLEX DIRECTORSHIPS HELD WITH AND LENGTH OF PRINCIPAL OCCUPATION(S) OVERSEEN BY HELD BY NAME, ADDRESS AND AGE FUNDS TIME SERVED** DURING PAST 5 YEARS*** DIRECTOR DIRECTOR --------------------- ------------ -------------- ----------------------------- -------------------- ------------- J. Jerry Inskeep, Jr.(1) Chairman and Served for 36 Chairman and President of 23 None 1300 S.W. Sixth Avenue Director Years Columbia Funds and CMC Fund Portland, OR 97201 Trust (71 years old) Jeff B. Curtis President Served for 2 President of Columbia Funds 1300 S.W. Sixth Avenue and Years Management Company and Portland, OR 97201 Assistant Columbia Management Co. (48 years old) Secretary Thomas L. Thomsen Vice Served for 2 Chief Executive Officer of 1300 S.W. Sixth Avenue President Years Columbia Funds Management Portland, OR 97201 Company and Columbia (57 years old) Management Co. Myron G. Child Vice Served for 2 Vice President of Columbia 1300 S.W. Sixth Avenue President Years Trust Company Portland, OR 97201 (61 years old) Kathleen M. Griffin Vice Served for 2 Vice President of Columbia 1300 S.W. Sixth Avenue President Years Financial Center Incorporated Portland, OR 97201 (42 years old) Jeffrey L. Lunzer Vice Served for 2 Vice President of Columbia 1300 S.W. Sixth Avenue President Years Funds Management Company Portland, OR 97201 (41 years old) Susan J. Woodworth Vice Served for 2 Vice President of Columbia 1300 S.W. Sixth Avenue President Years Trust Company Portland, OR 97201 (49 years old) Mark A. Wentzien Secretary Served for 2 Vice President of Columbia 1300 S.W. Sixth Avenue Years Funds Management Company and Portland, OR 97201 Columbia Management Co. (41 years old)
- --------------- * Interested person as defined by the 1940 Act. ** Each director serves for an indefinite term in accordance with the current by-laws of each Fund until the date a director resigns, retires or is removed in accordance with the Bylaws of each Fund. *** In addition to the principal occupations listed above, all of the officers of the Funds are employees and officers of CFMC and/or its affiliates. (1) Mr. Inskeep is deemed to be interested because he is affiliated with the Advisor. 103 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- NOTE 6 -- DIRECTORS AND OFFICERS (UNAUDITED, CONT.) Disinterested Directors:
NUMBER OF PORTFOLIOS OTHER POSITION(S) TERM OF OFFICE** IN FUND COMPLEX DIRECTORSHIPS HELD WITH AND LENGTH OF PRINCIPAL OCCUPATION(S) OVERSEEN BY HELD BY NAME, ADDRESS AND AGE FUNDS TIME SERVED DURING PAST 5 YEARS DIRECTOR DIRECTOR - --------------------- ------------ ---------------- ------------------------- -------------------- ------------- James C. George Director Served for 8 Investment Consultant 23 None 1001 S.W. 5th Avenue Years Suite 1100 Portland, OR 97204 (69 years old) Patrick J. Simpson Director Served for 2 Lawyer, Perkins Coie LLP 23 None 1211 S.W. 5th Avenue Years Suite 1500 Portland, OR 97204 (57 years old) Richard L. Woolworth Director Served for 11 Chairman/CEO, The Regence 23 The Regence 100 S.W. Market St. #1500 Years Group Group, Portland, OR 97207 Regence (60 years old) BlueCross Blueshield of Oregon
- --------------- There is no family relationship between any of the Directors listed above. ** Each director serves for an indefinite term in accordance with the current by-laws of each Fund until the date a director resigns, retires or is removed in accordance with the Bylaws of each Fund. Mutual fund shares are not insured by the FDIC or any other governmental entity; are not deposits or other obligations of, or guaranteed by, any bank; and involve risks, including loss of principal. 104 REPORT OF INDEPENDENT ACCOUNTANTS - -------------------------------------------------------------------------------- TO THE BOARD OF DIRECTORS AND SHAREHOLDERS OF: Columbia Common Stock Fund, Inc. Columbia Growth Fund, Inc. Columbia International Stock Fund, Inc. Columbia Special Fund, Inc. Columbia Small Cap Fund, Inc. Columbia Real Estate Equity Fund, Inc. Columbia Technology Fund, Inc. Columbia Strategic Value Fund, Inc. Columbia Balanced Fund, Inc. Columbia Short Term Bond Fund, Inc. Columbia Fixed Income Securities Fund, Inc. Columbia National Municipal Bond Fund, Inc. Columbia Oregon Municipal Bond Fund, Inc. Columbia High Yield Fund, Inc. Columbia Daily Income Company In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of each of the funds listed above comprising the Columbia Funds (collectively the Funds) at December 31, 2001, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended, except for the Columbia Technology Fund, Inc. and the Columbia Strategic Value Fund, Inc. for which the periods are October 27, 2000 (inception of operations) through December 31, 2000 and the year ended December 31, 2001, and the financial highlights for each of the periods presented therein, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as financial statements) are the responsibility of the Funds' management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with auditing standards generally accepted in the United States of America, which require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2001, by correspondence with the custodian and brokers, provide a reasonable basis for our opinion. PricewaterhouseCoopers LLP Portland, Oregon February 8, 2002 105 [COLUMBIA LOGO] COLUMBIA FUNDS 1301 S.W. FIFTH AVENUE, PORTLAND, OREGON 97201 DIRECTORS JAMES C. GEORGE J. JERRY INSKEEP, JR. PATRICK J. SIMPSON RICHARD L. WOOLWORTH INVESTMENT ADVISOR COLUMBIA FUNDS MANAGEMENT COMPANY 1300 S.W. SIXTH AVENUE PORTLAND, OREGON 97201 LEGAL COUNSEL STOEL RIVES LLP 900 S.W. FIFTH AVENUE, SUITE 2300 PORTLAND, OREGON 97204-1268 INDEPENDENT ACCOUNTANTS PRICEWATERHOUSECOOPERS LLP 1300 S.W. FIFTH AVENUE, SUITE 3100 PORTLAND, OREGON 97201 TRANSFER AGENT COLUMBIA TRUST COMPANY 1301 S.W. FIFTH AVENUE PORTLAND, OREGON 97201 THIS INFORMATION MUST BE PRECEDED OR ACCOMPANIED BY A CURRENT PROSPECTUS. PLEASE READ IT CAREFULLY BEFORE INVESTING. THE MANAGERS' VIEWS CONTAINED IN THIS REPORT ARE SUBJECT TO CHANGE AT ANY TIME, BASED ON MARKET AND OTHER CONSIDERATIONS. PORTFOLIO CHANGES SHOULD NOT BE CONSIDERED RECOMMENDATIONS FOR ACTION BY INDIVIDUAL INVESTORS. FUNDS DISTRIBUTED BY PFPC DISTRIBUTORS,INC. -----END PRIVACY-ENHANCED MESSAGE-----