-----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, RR0c6LG0QfWGb8usOSpLnP4kWnVYsuzXMm4RWbRc3sMmQh5nY3/tl0oIjW3z1SY6 D5FRzTLJtpXyx1C6LoxcZg== 0001047469-98-008345.txt : 19980304 0001047469-98-008345.hdr.sgml : 19980304 ACCESSION NUMBER: 0001047469-98-008345 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19971231 FILED AS OF DATE: 19980302 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: COLUMBIA COMMON STOCK FUND INC CENTRAL INDEX KEY: 0000876606 STANDARD INDUSTRIAL CLASSIFICATION: [] FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-06341 FILM NUMBER: 98555112 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 STANDARD INDUSTRIAL CLASSIFICATION: [] IRS NUMBER: 930635121 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-02507 FILM NUMBER: 98555113 BUSINESS ADDRESS: STREET 1: 1301 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 STANDARD INDUSTRIAL CLASSIFICATION: [] IRS NUMBER: 930560559 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-01449 FILM NUMBER: 98555114 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 FIXED INCOME SECURITIES FUND INC CENTRAL INDEX KEY: 0000707833 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 930824379 STATE OF INCORPORATION: OR FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-03581 FILM NUMBER: 98555115 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 MUNICIPAL BOND FUND INC CENTRAL INDEX KEY: 0000741558 STANDARD INDUSTRIAL CLASSIFICATION: [] IRS NUMBER: 930866151 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-03983 FILM NUMBER: 98555116 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 SPECIAL FUND INC CENTRAL INDEX KEY: 0000773599 STANDARD INDUSTRIAL CLASSIFICATION: [] STATE OF INCORPORATION: OR FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-04362 FILM NUMBER: 98555117 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 U S GOVERNMENT SECURITIES FUND INC CENTRAL INDEX KEY: 0000801962 STANDARD INDUSTRIAL CLASSIFICATION: [] FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-04842 FILM NUMBER: 98555118 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 GUARANTEED SECURITIES FUND INC DATE OF NAME CHANGE: 19920219 FILER: COMPANY DATA: COMPANY CONFORMED NAME: COLUMBIA BALANCED FUND INC /OR/ CENTRAL INDEX KEY: 0000876613 STANDARD INDUSTRIAL CLASSIFICATION: [] FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-06338 FILM NUMBER: 98555119 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 INTERNATIONAL STOCK FUND INC CENTRAL INDEX KEY: 0000889421 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 931089960 STATE OF INCORPORATION: OR FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-07024 FILM NUMBER: 98555120 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 HIGH YIELD FUND INC CENTRAL INDEX KEY: 0000908836 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 931117636 STATE OF INCORPORATION: OR FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-07834 FILM NUMBER: 98555121 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 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 931131979 STATE OF INCORPORATION: OR FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-08256 FILM NUMBER: 98555122 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 SMALL CAP FUND INC CENTRAL INDEX KEY: 0001016510 STANDARD INDUSTRIAL CLASSIFICATION: [] STATE OF INCORPORATION: OR FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-07671 FILM NUMBER: 98555123 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 N-30D [LOGO] COLUMBIA FUNDS 1997 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 BALANCED FUND ---------------------------------------------------- ---------------------------------------------------- COLUMBIA DAILY INCOME COMPANY ---------------------------------------------------- ---------------------------------------------------- COLUMBIA U.S. GOVERNMENT SECURITIES FUND ---------------------------------------------------- ---------------------------------------------------- COLUMBIA FIXED INCOME SECURITIES FUND ---------------------------------------------------- ---------------------------------------------------- COLUMBIA MUNICIPAL BOND FUND ---------------------------------------------------- ---------------------------------------------------- COLUMBIA HIGH YIELD FUND DEAR COLUMBIA INVESTOR: We are pleased to present the 1997 Columbia Funds Shareholder Report. Inside you will find updated financial information and summaries of each Fund's investment activity for the year, along with a chart illustrating the growth of a hypothetical investment, compared to each Fund's industry benchmark. The "Overview of the Markets" on page one summarizes stock and bond market activity during 1997. In addition, Columbia's investment approach is described, highlighting themes and strategies used during the year to meet the objectives of each Fund. We hope that you find this information helpful as you evaluate the performance of your investments. As always, we appreciate the confidence and trust you have placed in Columbia Funds, and we look forward to helping you achieve your investment goals in the months and years to come. Sincerely, [SIG] [SIG] John A. Kemp Thomas L. Thomsen CHAIRMAN AND CHIEF EXECUTIVE OFFICER PRESIDENT AND CHIEF INVESTMENT OFFICER COLUMBIA FUNDS MANAGEMENT COMPANY COLUMBIA FUNDS MANAGEMENT COMPANY
FRONT COVER FEATURES A PHOTOGRAPH OF THE 80-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. TABLE OF CONTENTS ----------------------------------------------------------------- ANNUAL REPORT, DECEMBER 31, 1997 AN OVERVIEW OF THE MARKETS.....................................................1 COLUMBIA COMMON STOCK FUND Investment Review............................................................3 Financial Highlights........................................................15 Schedule of Investments.....................................................27 Statement of Assets and Liabilities.........................................61 Statement of Operations.....................................................64 Statements of Changes in Net Assets.........................................67 COLUMBIA GROWTH FUND Investment Review............................................................4 Financial Highlights........................................................16 Schedule of Investments.....................................................29 Statement of Assets and Liabilities.........................................61 Statement of Operations.....................................................64 Statements of Changes in Net Assets.........................................67 COLUMBIA INTERNATIONAL STOCK FUND Investment Review............................................................5 Financial Highlights........................................................17 Schedule of Investments.....................................................31 Statement of Assets and Liabilities.........................................61 Statement of Operations.....................................................64 Statements of Changes in Net Assets.........................................67 COLUMBIA SPECIAL FUND Investment Review............................................................6 Financial Highlights........................................................18 Schedule of Investments.....................................................35 Statement of Assets and Liabilities.........................................61 Statement of Operations.....................................................64 Statements of Changes in Net Assets.........................................68 COLUMBIA SMALL CAP FUND Investment Review............................................................7 Financial Highlights........................................................19 Schedule of Investments.....................................................37 Statement of Assets and Liabilities.........................................62 Statement of Operations.....................................................65 Statements of Changes in Net Assets.........................................68 COLUMBIA REAL ESTATE EQUITY FUND Investment Review............................................................8 Financial Highlights........................................................20 Schedule of Investments.....................................................39 Statement of Assets and Liabilities.........................................62 Statement of Operations.....................................................65 Statements of Changes in Net Assets.........................................68 COLUMBIA BALANCED FUND Investment Review............................................................9 Financial Highlights........................................................21 Schedule of Investments.....................................................40 Statement of Assets and Liabilities.........................................62 Statement of Operations.....................................................65 Statements of Changes in Net Assets.........................................69 COLUMBIA DAILY INCOME COMPANY Investment Review...........................................................10 Financial Highlights........................................................22 Schedule of Investments.....................................................45 Statement of Assets and Liabilities.........................................62 Statement of Operations.....................................................65 Statements of Changes in Net Assets.........................................69 COLUMBIA U.S. GOVERNMENT SECURITIES FUND Investment Review...........................................................11 Financial Highlights........................................................23 Schedule of Investments.....................................................48 Statement of Assets and Liabilities.........................................63 Statement of Operations.....................................................66 Statements of Changes in Net Assets.........................................69 COLUMBIA FIXED INCOME SECURITIES FUND Investment Review...........................................................12 Financial Highlights........................................................24 Schedule of Investments.....................................................49 Statement of Assets and Liabilities.........................................63 Statement of Operations.....................................................66 Statements of Changes in Net Assets.........................................70 COLUMBIA MUNICIPAL BOND FUND Investment Review...........................................................13 Financial Highlights........................................................25 Schedule of Investments.....................................................52 Statement of Assets and Liabilities.........................................63 Statement of Operations.....................................................66 Statements of Changes in Net Assets.........................................70 COLUMBIA HIGH YIELD FUND Investment Review...........................................................14 Financial Highlights........................................................26 Schedule of Investments.....................................................58 Statement of Assets and Liabilities.........................................63 Statement of Operations.....................................................66 Statements of Changes in Net Assets.........................................70 NOTES TO FINANCIAL STATEMENTS.................................................71 COLUMBIA FUNDS P.O. BOX 1350 PORTLAND, OR 97207-1350 222-3606 1-800-547-1707 WWW.COLUMBIAFUNDS.COM AN OVERVIEW OF THE MARKETS ----------------------------------------------------------------- A LOOK BACK AT 1997 The year was ushered in with favorable economic conditions. While the GDP exceeded expectations in the first quarter, it was not accompanied by higher inflation. The Fed, nevertheless, responded to the quickly growing economy by raising short-term interest rates .25% at the end of March. This action set the tone for a dramatic increase in stock market volatility in the second quarter that continued throughout much of the year. Immediately after the rate hike, both the S&P 500 and NASDAQ gave up most of their year-to-date gains, only to have investors bid prices right back up. By the end of the second quarter, the S&P 500 had gained 20.59%, led by a narrow group of large company stocks. GROSS DOMESTIC PRODUCT VS. INFLATION IN 1997 EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
GROSS DOMESTIC PRODUST VS. INFLATION IN 1997 GDP INFLATION (SEASONALLY ADJUSTED ANNUAL RATE) 1QTR 4.90% 2QTR 3.30% 3QTR 3.10% 4QTR 4.30%
In the third quarter, the market began to broaden as investors gained confidence about continued moderate economic growth and low inflation. Investors moved away from large capitalization stocks to seek values in smaller cap companies and issues overseas. Meanwhile, continuing earnings growth, expanding profit margins, subdued inflation and low interest rates all suggested that the stock market would prolong its historic bull run for a 13th consecutive year. Although it appeared that the economy was approaching full utilization, there were no signs of excess or imbalance that suggested the Fed might tighten rates in the near term. 30-YEAR TREASURY YIELDS OVER THE LAST SIX YEARS EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC 1/3/92 7.48 1/10/92 7.39 1/17/92 7.61 1/24/92 7.71 1/31/92 7.76 2/7/92 7.76 2/14/92 7.9 2/21/92 7.94 2/28/92 7.79 3/6/92 7.93 3/13/92 8.07 3/20/92 8.05 3/27/92 7.94 4/3/92 7.88 4/10/92 7.89 4/17/92 7.94 4/24/92 8.04 5/1/92 8.01 5/8/92 7.89 5/15/92 7.82 5/22/92 7.82 5/29/92 7.84 6/5/92 7.85 6/12/92 7.88 6/19/92 7.83 6/26/92 7.78 7/3/92 7.63 7/10/92 7.63 7/17/92 7.68 7/24/92 7.57 7/31/92 7.46 8/7/92 7.39 8/14/92 7.32 8/21/92 7.35 8/28/92 7.42 9/4/92 7.28 9/11/92 7.29 9/18/92 7.32 9/25/92 7.36 10/2/92 7.33 10/9/92 7.52 10/16/92 7.53 10/23/92 7.64 10/30/92 7.62 11/6/92 7.76 11/13/92 7.56 11/20/92 7.53 11/27/92 7.59 12/4/92 7.49 12/11/92 7.44 12/18/92 7.42 12/25/92 7.36 1/1/93 7.4 1/8/93 7.46 1/15/93 7.35 1/22/93 7.29 1/29/93 7.2 2/5/93 7.16 2/12/93 7.12 2/19/93 7.01 2/26/93 6.89 3/5/93 6.74 3/12/93 6.86 3/19/93 6.81 3/26/93 6.94 4/2/93 7.05 4/9/93 6.85 4/16/93 6.75 4/23/93 6.79 4/30/93 6.92 5/7/93 6.84 5/14/93 6.94 5/21/93 7.03 5/28/93 6.98 6/4/93 6.91 6/11/93 6.81 6/18/93 6.81 6/25/93 6.7 7/2/93 6.66 7/9/93 6.64 7/16/93 6.54 7/23/93 6.7 7/30/93 6.56 8/6/93 6.53 8/13/93 6.35 8/20/93 6.22 8/27/93 6.13 9/3/93 5.94 9/10/93 5.88 9/17/93 6.04 9/24/93 6.05 10/1/93 5.99 10/8/93 5.92 10/15/93 5.79 10/22/93 5.98 10/29/93 5.97 11/5/93 6.21 11/12/93 6.15 11/19/93 6.34 11/26/93 6.26 12/3/93 6.25 12/10/93 6.19 12/17/93 6.28 12/24/93 6.21 12/31/93 6.35 1/7/94 6.23 1/14/94 6.3 1/21/94 6.28 1/28/94 6.22 2/4/94 6.36 2/11/94 6.41 2/18/94 6.63 2/25/94 6.71 3/4/94 6.84 3/11/94 6.9 3/18/94 6.92 3/25/94 7.02 4/1/94 7.25 4/8/94 7.26 4/15/94 7.29 4/22/94 7.23 4/29/94 7.31 5/6/94 7.54 5/13/94 7.49 5/20/94 7.3 5/27/94 7.39 6/3/94 7.27 6/10/94 7.31 6/17/94 7.45 6/24/94 7.52 7/1/94 7.61 7/8/94 7.69 7/15/94 7.54 7/22/94 7.56 7/29/94 7.4 8/5/94 7.48 8/12/94 7.48 8/19/94 7.49 8/26/94 7.7 9/2/94 7.77 9/9/94 7.79 9/16/94 7.82 9/23/94 7.91 9/30/94 7.83 10/7/94 7.98 10/28/94 7.96 11/4/94 8.16 11/11/94 8.15 11/18/94 8.13 11/25/94 7.93 12/2/94 7.91 12/9/94 7.86 12/16/94 7.85 12/23/94 7.83 12/30/94 7.88 1/6/95 7.86 1/13/95 7.79 1/20/95 7.89 1/27/95 7.73 2/3/95 7.63 2/10/95 7.67 2/17/95 7.59 2/24/95 7.53 3/3/95 7.54 3/10/95 7.46 3/17/95 7.37 3/24/95 7.36 3/31/95 7.43 4/7/95 7.39 4/14/95 7.34 4/21/95 7.33 4/28/95 7.34 5/5/95 7.02 5/12/95 6.99 5/19/95 6.92 5/26/95 6.75 6/2/95 6.53 6/9/95 6.73 6/16/95 6.62 6/23/95 6.5 6/30/95 6.62 7/7/95 6.52 7/14/95 6.6 7/21/95 6.96 7/28/95 6.9 8/4/95 6.91 8/11/95 6.99 8/18/95 6.9 8/25/95 6.7 9/1/95 6.62 9/8/95 6.59 9/15/95 6.48 9/22/95 6.58 9/29/95 6.5 10/6/95 6.42 10/13/95 6.3 10/20/95 6.36 10/27/95 6.36 11/3/95 6.28 11/10/95 6.34 11/17/95 6.23 11/24/95 6.25 12/1/95 6.09 12/8/95 6.05 12/15/95 6.1 12/22/95 6.06 12/29/95 5.95 1/5/96 6.04 1/12/96 6.15 1/19/96 5.97 1/26/96 6.04 2/2/96 6.16 2/9/96 6.1 2/16/96 6.24 2/23/96 6.4 3/1/96 6.37 3/8/96 6.71 3/15/96 6.74 3/22/96 6.66 3/29/96 6.67 4/5/96 6.82 4/12/96 6.8 4/19/96 6.79 4/26/96 6.79 5/3/96 7.12 5/10/96 6.93 5/17/96 6.83 5/24/96 6.83 5/31/96 6.99 6/7/96 7.03 6/14/96 7.09 6/21/96 7.1 6/28/96 6.87 7/5/96 7.19 7/12/96 7.03 7/19/96 6.97 7/26/96 7.01 8/2/96 6.74 8/9/96 6.69 8/16/96 6.77 8/23/96 6.96 8/30/96 7.12 9/6/96 7.11 9/13/96 6.95 9/20/96 7.04 9/27/96 6.91 10/4/96 6.74 10/11/96 6.84 10/18/96 6.8 10/25/96 6.82 11/1/96 6.68 11/8/96 6.51 11/15/96 6.46 11/22/96 6.44 11/29/96 6.35 12/6/96 6.51 12/13/96 6.57 12/20/96 6.61 12/27/96 6.56 1/3/97 6.73 1/10/97 6.84 1/17/97 6.82 1/24/97 6.89 1/31/97 6.79 2/7/97 6.7 2/14/97 6.52 2/21/97 6.64 2/28/97 6.8 3/7/97 6.81 3/14/97 6.94 3/21/97 6.97 3/28/97 7.09 4/4/97 7.12 4/11/97 7.17 4/18/97 7.05 4/25/97 7.14 5/2/97 6.87 5/9/97 6.89 5/16/97 6.9 5/23/97 6.99 5/30/97 6.91 6/6/97 6.77 6/13/97 6.72 6/20/97 6.66 6/27/97 6.74 7/4/97 6.63 7/11/97 6.53 7/18/97 6.53 7/25/97 6.45 8/1/97 6.45 8/8/97 6.64 8/15/97 6.55 8/22/97 6.65 8/29/97 6.61 9/5/97 6.64 9/12/97 6.59 9/19/97 6.38 9/26/97 6.37 9/30/97 6.4 10/6/97 6.26 10/13/97 6.43 10/20/97 6.42 10/27/97 6.13 11/3/97 6.21 11/10/97 6.14 11/17/97 6.07 11/24/97 6.07 12/1/97 6.04 12/8/97 6.14 12/15/97 5.97 12/22/97 5.89 12/29/97 5.92 1/5/98 5.74
In the fourth quarter, currency devaluations in Southeast Asia rocked investment communities worldwide and market volatility picked up dramatically in late October. The financial crisis in Asian markets was aggravated by overlending and the large amount of debt held by many private companies. At the same time, Japan, which represents a significant percentage of the world markets, showed renewed signs of a slowdown and this created little relief for international investors. As a result of this turbulence, a flight to safety prompted investors to migrate back to more liquid, large capitalization stocks and to U.S. Treasuries, pushing the yield of the long bond below 6% for the first time in almost two years. MARKET OUTLOOK The U.S. equity markets continue to trade at valuation levels that are historically high, but many positive factors support these valuations. The Fed remains vigilant, poised to tighten if economic growth or inflation heat up, but ready to provide liquidity if the economy slows or international concerns intensify. The current scenario -- expectations for modest increases in corporate profits, low inflation and declining interest rates -- is generally positive for the stock market. 1 AN OVERVIEW OF THE MARKETS - -------------------------------------------------------------------------------- At this point, however, we believe that some caution is warranted. Increased risk in the equity markets is evidenced by continued higher volatility and a preference for greater liquidity. Concerns are growing that 1998 earnings may not rise sufficiently to justify current prices. The potential for much slower growth in emerging countries (particularly in Southeast Asia and Latin America) is dimming earnings prospects for many multinational companies. INVESTMENT STRATEGY We have positioned our equity portfolios to favor domestic growth over cyclical issues. Areas that merit particular emphasis, we believe, include retail issues, health care and consumer staple stocks. Continuing strength in consumer confidence and the low level of inflation support an overweighting in these issues in spite of somewhat high valuations. We have increased utility stock holdings to take advantage of their stable relative earnings and high dividend yields. Energy issues have been deemphasized because of slowing world growth and falling commodity prices. CONSUMER CONFIDENCE EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC Jan-80 85.9 Feb-80 85.3 Mar-80 80.8 Apr-80 60.5 May-80 50.1 Jun-80 56.1 Jul-80 65.4 Aug-80 70.8 Sep-80 80.3 Oct-80 84.2 Nov-80 87.2 Dec-80 78.6 Jan-81 74.4 Feb-81 69 Mar-81 77.8 Apr-81 81.6 May-81 86.9 Jun-81 83 Jul-81 83.5 Aug-81 85.7 Sep-81 75.6 Oct-81 66.9 Nov-81 66.6 Dec-81 64.9 Jan-82 62.3 Feb-82 56.7 Mar-82 57 Apr-82 61.4 May-82 56.7 Jun-82 63.2 Jul-82 56.9 Aug-82 58.1 Sep-82 54.3 Oct-82 57.4 Nov-82 59.5 Dec-82 59 Jan-83 67.6 Feb-83 79.4 Mar-83 83.1 Apr-83 87.7 May-83 87.5 Jun-83 89 Jul-83 91.2 Aug-83 91.1 Sep-83 92.1 Oct-83 96.7 Nov-83 103.6 Dec-83 103.9 Jan-84 101 Feb-84 101.1 Mar-84 106.1 Apr-84 104.8 May-84 105.8 Jun-84 100.4 Jul-84 103.1 Aug-84 100 Sep-84 99.1 Oct-84 105.4 Nov-84 97 Dec-84 102 Jan-85 103.1 Feb-85 96.1 Mar-85 104.4 Apr-85 99.6 May-85 102.6 Jun-85 103.2 Jul-85 100.9 Aug-85 96 Sep-85 96.1 Oct-85 98.1 Nov-85 98.2 Dec-85 96.9 Jan-86 96 Feb-86 95.1 Mar-86 100 Apr-86 100.2 May-86 100 Jun-86 97.5 Jul-86 91.7 Aug-86 89.7 Sep-86 85.8 Oct-86 89.7 Nov-86 93.2 Dec-86 85.4 Jan-87 91.8 Feb-87 95.8 Mar-87 97.4 Apr-87 103 May-87 102.1 Jun-87 105.8 Jul-87 110.7 Aug-87 115.7 Sep-87 115.1 Oct-87 100.8 Nov-87 107.7 Dec-87 109.9 Jan-88 114.9 Feb-88 112.7 Mar-88 115.7 Apr-88 120.2 May-88 115.7 Jun-88 113.5 Jul-88 119.7 Aug-88 110.7 Sep-88 116.9 Oct-88 112.9 Nov-88 119.3 Dec-88 115.8 Jan-89 120.7 Feb-89 117.4 Mar-89 116.6 Apr-89 116.7 May-89 117.5 Jun-89 120.4 Jul-89 114.7 Aug-89 116.3 Sep-89 117 Oct-89 115.1 Nov-89 113.1 Dec-89 106.5 Jan-90 106.7 Feb-90 107.9 Mar-90 107.3 Apr-90 102.4 May-90 101.8 Jun-90 84.7 Jul-90 85.6 Aug-90 62.6 Sep-90 61.7 Oct-90 61.2 Nov-90 55.1 Dec-90 59.4 Jan-91 81 Feb-91 79.4 Mar-91 76.4 Apr-91 78 May-91 78 Jun-91 77.7 Jul-91 76.1 Aug-91 72.9 Sep-91 60.1 Oct-91 52.7 Nov-91 52.7 Dec-91 52.5 Jan-92 50.4 Feb-92 47.3 Mar-92 56.5 Apr-92 65.1 May-92 71.9 Jun-92 72.6 Jul-92 61.2 Aug-92 59 Sep-92 57.3 Oct-92 54.6 Nov-92 65.6 Dec-92 78.1 Jan-93 76.7 Feb-93 68.5 Mar-93 63.2 Apr-93 67.6 May-93 61.9 Jun-93 58.6 Jul-93 59.2 Aug-93 59.3 Sep-93 63.8 Oct-93 60.5 Nov-93 71.9 Dec-93 79.8 Jan-94 82.6 Feb-94 79.6 Mar-94 86.7 Apr-94 92.1 May-94 88.9 Jun-94 92.5 Jul1994 91.3 Aug-94 90.4 Sep-94 89.5 Oct1994 89.1 Nov-94 100.4 Dec-94 103.4 Jan-95 101.4 Feb-95 99.4 Mar-95 100.2 Apr-95 104.6 May-95 102 Jun-95 92.8 Jul-95 101.4 Aug-95 102.4 Sep-95 97.3 Oct-95 96.3 Nov-95 101.6 Dec-95 99.2 Jan-96 88.4 Feb-96 98 Mar-96 98.4 Apr-96 104.8 May-96 103.5 Jun-96 100.1 Jul-96 107 Aug-96 112 Sep-96 111.8 Oct-96 107.3 Nov-96 109.5 Dec-96 114.2 Jan-97 118.7 Feb-97 118.9 Mar-97 118.5 Apr-97 118.5 May-97 127.9 Jun-97 129.9 Jul-97 126.3 Aug-97 127.6 Sep-97 130.2 Oct-97 123.3 Nov-97 128.3 Dec-97 134.5
REIT valuations remain attractive relative to the broader market, and expectations for double-digit total returns are not unreasonable, with lower volatility than the S&P. As we look to the year ahead, we continue to believe that economic indicators support prospects for a healthy economy. However, peaking profit margins and slowing world growth should, we believe, lead to moderating corporate earnings growth. We anticipate the recent high level of market volatility to continue, so we remain focused on companies that are expected to maintain competitive strength in their industries and deliver dependable earnings growth. So that you may evaluate how the Columbia Funds performed given this economic and financial market backdrop, the following pages contain discussions of the Funds' investment activity during 1997, along with graphs illustrating the growth of $10,000 over various time periods. Each Fund compares its performance to a relevant benchmark. Unlike the Funds, however, these benchmark indices are not actively managed and have no operating expenses, portfolio transaction costs or cash flows. Thank you for your investment in Columbia Funds. We appreciate your confidence, and look forward to serving your investment needs in the years to come. THE INVESTMENT TEAM COLUMBIA FUNDS MANAGEMENT COMPANY FEBRUARY 1998 2 INVESTMENT REVIEW - -------------------------------------------------------------------------------- - ---- ---- -- COLUMBIA COMMON STOCK FUND -- -------------------------------- For the third consecutive year, Columbia Common Stock Fund delivered gains in excess of 20% by posting a total return of 25.37% for 1997. The strongest performing sectors included banking and finance, consumer staples and retailers. Sectors that did not perform as well included energy, REITs and cyclicals like paper and metals. After maintaining a steady weighting in cyclical stocks, we adopted a growth strategy early in the fourth quarter, in anticipation of a slowing economy. To that end, stocks in the building, forest product, metal and chemical sectors were reduced from a total of 16% of the portfolio to 3%. We also reduced positions in energy and technology stocks. Consumer staples, health care and utilities, on the other hand, were increased.Our investment strategy assumes that profit growth in 1998 will be more difficult for domestic companies to attain. With low inflation and low interest rates, price earnings ratios will most likely hold steady for companies delivering good earnings growth. We also believe that market volatility, which has been below average over the last few years, will likely increase to more normal historical levels, making it more important to manage risk and to identify companies with the most reliable growth prospects. With this in mind, we are focusing on areas that are expected to benefit from steady earnings in a slow growth environment. With a median market cap of $10.6 billion, Columbia Common Stock Fund is well diversified with over 78 different issues at year-end. The Fund continues to seek growth of capital and dividend income by using a top down, sector rotation strategy to select stocks of large, well-established companies. SECTORS OF EMPHASIS
% of Net Assets Consumer Staples 16.8 Health Care 12.6 Consumer Non-Durables 11.5 Finance 10.0 Technology 8.6 Energy & Energy Services 7.9
As of December 31, 1997 GROWTH OF $10,000 SINCE INCEPTION EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
COLUMBIA COMMON STOCK FUND S&P 500 10/1/91 $10,000 $10,000 12/31/91 $11,025 $10,838 12/31/92 $12,126 $11,664 12/31/93 $14,120 $12,840 12/31/94 $14,411 $13,009 12/31/95 $18,855 $17,898 12/31/96 $22,760 $22,007 12/31/97 $28,531 $29,350 Average Annual Total Returns As of December 31, 1997 CCSF S&P 500 1 Year 25.37% 33.36% 5 Years 18.66% 20.27% Since Inception 18.11% 18.64% Past Performance is not predictive of future performance.
3 INVESTMENT REVIEW - -------------------------------------------------------------------------------- - ---- ---- -- COLUMBIA GROWTH FUND -- -------------------------- Columbia Growth Fund gained 26.32% for the year ended December 31, 1997. Drug, bank, insurance and consumer growth stocks contributed to positive performance during the year, while REITs, health care service, and most technology stock returns lagged. The Fund's overall positive performance was attributable to rising P/Es due to lower inflation expectations and good corporate earnings growth. In 1997, the Fund's return lagged the S&P 500 Stock Index where a relatively small number of the largest capitalization stocks in the Index posted superior performance compared to the broader market. Nevertheless, we remain confident that fundamentals of the stocks in Columbia Growth Fund -- lower valuations and superior earnings growth -- are more attractive than the larger company stocks in the Index, and will reward shareholders of the Fund. TOP TEN HOLDINGS
% of Net Assets Cendant Corp. 3.2 Warnaco Group, Inc. (Class A) 3.1 Tyco International Ltd. 2.8 Cisco Systems, Inc. 2.5 Gillette Co. 2.4 Rite Aid Corp. 2.4 Philip Morris Cos., Inc. 2.1 Tandy Corp. 2.0 American General Corp. 2.0 Merck & Co., Inc. 2.0
AS OF DECEMBER 31, 1997
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC We expect corporate earnings growth to slow as profit margins peak and as demand slows due to economic and currency turmoil in Southeast Asia. Events in that region have lowered inflation expectations even further, however. Therefore, interest rates could stay at current low levels, helping to support the relatively high valuations seen in the stock market. With a view toward less earnings growth and lower interest rates, we are emphasizing stocks from companies with relatively stable growth. With the Asian situation negatively affecting exporters, as well as those companies that compete with imports and that do business in Asia, we expect superior growth to come from more domestically-oriented companies and those multinational companies selling such nondurable items as drugs and various household items. With a median market cap of $9.6 billion, Columbia Growth Fund continues to be well diversified with 81 different holdings as of December 31, 1997. SECTORS OF EMPHASIS
% of Net Assets Finance 18.8 Consumer Non-Durables 16.7 Consumer Staples 14.8 Health 13.0 Technology 12.9
AS OF DECEMBER 31, 1997
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC GROWTH OF $10,000 OVER 20 YEARS EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
COLUMBIA GROWTH FUND S&P 500 12/31/77 $10,000 $10,000 12/31/78 $10,804 $10,643 12/31/79 $15,187 $12,596 12/31/80 $21,244 $16,671 12/31/81 $20,524 $15,846 12/31/82 $30,079 $19,252 12/31/83 $36,535 $23,569 12/31/84 $34,496 $25,021 12/31/85 $45,559 $32,917 12/31/86 $48,711 $39,053 12/31/87 $55,891 $41,111 12/31/88 $61,933 $47,915 12/31/89 $79,950 $63,061 12/31/90 $77,303 $61,137 12/31/91 $103,788 $79,766 12/31/92 $116,055 $85,844 12/31/93 $131,154 $94,497 12/31/94 $130,328 $95,744 12/31/95 $173,310 $131,725 12/31/96 $209,358 $161,969 12/31/97 $264,496 $215,955 Average Annual Total Returns As of December 31, 1997 CGF S&P 500 1 Year 26.32% 33.36% 5 Years 17.91% 20.27% 10 Years 16.81% 18.04% 20 Years 17.79% 16.61% Past Performance is not predictive of future performance.
4 INVESTMENT REVIEW - -------------------------------------------------------------------------------- - ---- ---- -- COLUMBIA INTERNATIONAL STOCK FUND -- --------------------------------------- The Columbia International Stock Fund enjoyed strength in the first half of the year, where gains were fueled by double-digit returns in Europe, Brazil, India, Taiwan and Korea. The second half of the year grew turbulent, however, as a result of volatile and weak Asian markets, and the Fund recorded a 1997 total return of 11.47%. On early signs of turmoil in Southeast Asia, we sold positions in Korea, Malaysia, Hong Kong, and Taiwan in the third quarter, but the Fund was still negatively impacted. By October, the Asian financial crisis had spread to Hong Kong, and many major stock markets weakened, including Japan, which showed further signs of economic malaise. Led by the United States, however, most of these markets recovered to end the year on a more positive note. Despite a weak international market, Columbia International Stock Fund outperformed its benchmark for the period. Not only did the Fund underweight Japan, but stock selection TOP TEN HOLDINGS
% of Net Assets Novartis, AG 2.3 Sony Corp. 1.7 Aegon NV 1.6 Tubos de Acero de Mexico SA 1.5 SmithKline Beecham plc 1.4 Glaxo Wellcome plc 1.4 Compass Group plc 1.3 Fuji Photo Film Co., Ltd. 1.3 NTT Data Communications System Corp. 1.3 Nintendo, Co., Ltd. 1.2
AS OF DECEMBER 31, 1997
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC emphasized exporting companies such as electronics and autos, which enabled the Fund's Japanese holdings to outperform the overall Japanese market. Also, above- market weightings in several smaller European markets (Sweden, Norway, Spain and Italy) helped performance. With the European Monetary Union underway (a movement toward one currency), European markets remain attractive as bond yields converge and many countries experience huge declines in interest rates. We approach the new year with uncertainty about when the Asian financial crisis will be resolved. Nevertheless, many global markets show promise. Europe's recovery is gaining momentum and we look for more domestic policy change in Japan that should aid the entire Asian region. The Fund will continue its objective of seeking long-term capital appreciation by investing primarily in stocks of companies based outside the U.S. with at least 75% of the portfolio invested in companies with market valuations over $500 million. TOP TEN COUNTRY WEIGHTINGS
% of Net Assets Japan 22.2 United Kingdom 16.4 France 8.0 Germany 6.2 Netherlands 4.2 Sweden 3.9 Mexico 3.8 Spain 3.6 Canada 3.3 India 3.1
AS OF DECEMBER 31, 1997
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC GROWTH OF $10,000 SINCE INCEPTION EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
COLUMBIA INTERNATIONAL FT/S&P STOCK FUND EURO-PAC S&P 500 10/1/92 $10,000 $10,000 $10,000 12/31/92 $10,060 $9,628 $10,503 12/31/93 $13,417 $12,665 $11,562 12/31/94 $13,086 $13,822 $11,714 12/31/95 $13,760 $15,290 $16,117 12/31/96 $16,042 $16,180 $19,817 12/31/97 $17,881 $16,144 $26,428 Average Annual Total Returns As of December 31, 1997 CISF S&P 500 FT/S&P Euro-Pac 1 Year 11.47% 33.36% -0.22% 5 Years 12.19% 20.27% 10.89% Since Inception 11.59% 20.13% 9.46% Past Performance is not predictive of future performance.
5 INVESTMENT REVIEW - -------------------------------------------------------------------------------- - ---- ---- -- COLUMBIA SPECIAL FUND -- --------------------------- The Special Fund generated a total return of 12.64% for the 1997 year. During the fourth quarter, small- and mid-cap stocks underperformed the large-cap S&P 500 Stock Index. This came after an unusually strong third quarter of outperformance, which was fueled by a market rotation away from highly valued large cap stocks. The Fund's performance was adversely affected during the year by an early emphasis in the paper and metal sectors. We believed that these economically sensitive industries would offer value by benefiting from stronger than expected economic growth. In addition, we chose to de-emphasize finance stocks throughout the year in anticipation that these fully priced securities would disappoint if interest rates increased due to the strong TOP TEN HOLDINGS
% of Net Assets American Stores Co. 3.3 Safeway, Inc. 3.0 Kroger, Co. 3.0 Meyer (Fred), Inc. 2.9 Nordstrom, Inc. 2.5 Service Corp, International 2.4 ESC Medical Systems Ltd. 2.2 FIserv, Inc. 2.2 Quality Food Centers, Inc. 2.1 Abercrombie & Fitch Co. (Class A) 2.0
AS OF DECEMBER 31, 1997
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC world economic growth. The demand for basic materials was reduced by the international slowdown, and this prompted a decline in domestic and foreign interest rates. In turn, investors fled from companies with less predictable earnings to those with more consistent growth. As the year came to a close, we sharply reduced our weightings in paper, metals and machinery from a total of 24% of the portfolio to 7%. We increased areas of steady growth like business and consumer services, consumer staples and health care from 30% of the portfolio to 46%. We also added to REITs and are currently maintaining a below-market weighting in technology. The long-term strategy of the Special Fund has always been to maintain a core of growth stocks while anticipating and recognizing changes in the market. This has enabled us to invest in sectors and themes that benefit from these changes. As we begin 1998, we are emphasizing consistent growth stocks, domestic companies, and risk management. This supports our outlook for low inflation, a reduced rate of corporate profit growth and the likelihood of greater stock market volatility. SECTORS OF EMPHASIS
% of Net Assets Consumer Non-Durables 25.0 Consumer Staples 16.3 Business & Consumer Services 15.7 Health Care 14.0
AS OF DECEMBER 31, 1997
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC GROWTH OF $10,000 OVER 10 YEARS EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
COLUMBIA SPECIAL FUND S&P 500 RUSSELL 2000 12/31/87 $10,000 $10,000 $10,000 12/31/88 $14,255 $11,655 $12,502 12/31/89 $18,805 $15,339 $14,535 12/31/90 $16,475 $14,871 $11,699 12/31/91 $24,789 $19,403 $17,094 12/31/92 $28,185 $20,881 $20,240 12/31/93 $34,295 $22,986 $24,062 12/31/94 $35,080 $23,289 $23,624 12/31/95 $45,440 $32,041 $30,345 12/31/96 $51,379 $39,398 $35,349 12/31/97 $57,879 $52,533 $43,254 Average Annual Total Returns As of December 31, 1997 CSF S&P 500 Russell 2000 1 Year 12.64% 33.36% 22.36% 5 Years 15.48% 20.27% 16.40% Since Inception 19.19% 18.04% 15.77% Past Performance is not predictive of future performance.
6 INVESTMENT REVIEW - -------------------------------------------------------------------------------- - ---- ---- -- COLUMBIA SMALL CAP FUND -- ----------------------------- For 1997, Columbia Small Cap Fund generated a total return of 34.10%, outperforming both the S&P 500 and the Russell 2000. After particularly strong performance in the second and third quarters, however, the Fund suffered in the fourth quarter when small cap stocks sputtered in response to increased stock market volatility. Investment themes benefiting the portfolio during the year included a focus on specialty retailers based on a high level of consumer confidence and spending. We also emphasized the assisted living sector as part of our emphasis on the aging of America. Another successful strategy was to invest in stocks of well- drilling and oil equipment supply industries, which provided handsome returns. TOP TEN HOLDINGS
% of Net Assets CKE Restaurants, Inc. 2.3 Laser Industries Ltd. 2.1 North Fork Bancorp, Inc. 2.0 Tubos de Acero de Mexico SA ADR 2.0 CIBER, Inc. 1.9 Williams-Sonoma, Inc. 1.9 ATL Ultrasound, Inc. 1.8 Orbital Sciences Corp. 1.7 Engineering Animation, Inc. 1.7 Universal Health Services, Inc. (Class B) 1.6
AS OF DECEMBER 31, 1997
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC During the fourth quarter, turmoil in Southeast Asian economies prompted investors to seek a safe haven in larger, more liquid stocks. The demand for liquidity depressed small cap valuations and thus stock prices. We responded by selling stocks we believed were fully valued and susceptible to correction, along with those we deemed most vulnerable to negative earnings revisions from the Asian crisis. These areas included energy and certain segments of the technology sector. Meanwhile, we increased our health care exposure due to this sector's more stable domestic revenue base and insulation from the economy. Looking ahead, we believe that relative valuations and earnings growth prospects in the small cap market are attractive based on historical ranges. In the meantime, the Fund continues to employ fundamental research to identify attractively valued, small companies with above average earnings potential. Using a bottoms up approach to stock selection, the Fund had a diversified portfolio of 101 issues at year-end and a median market capitalization of $551 million. SECTORS OF EMPHASIS
% of Net Assets Health Care 27.7 Technology 24.3 Consumer Non-Durables 10.2 Business & Consumer Services 8.0 Energy & Energy Services 6.1 Finance 6.1
AS OF DECEMBER 31, 1997
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC GROWTH OF $10,000 SINCE INCEPTION EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
COLUMBIA SMALL CAP FUND RUSSELL 2000 10/1/96 $10,000 $10,000 12/31/96 $10,762 $10,520 3/31/97 $10,224 $9,976 6/30/97 $12,245 $11,593 9/30/97 $15,021 $13,318 12/31/97 $14,432 $12,872 Average Annual Total Returns As of December 31, 1997 CSCF Russell 2000 1 Year 34.10% 22.36% Since Inception 35.76% 23.42% Past Performance is not predictive of future results.
7 INVESTMENT REVIEW - -------------------------------------------------------------------------------- - ---- ---- -- COLUMBIA REAL ESTATE EQUITY FUND -- -------------------------------------- Columbia Real Estate Equity Fund posted a total return of 24.74% for the year ended December 31, 1997. Real estate investment trusts (REITs) corrected early in the second quarter, along with the rest of the stock market, as investors adjusted to the March 25th rate hike by the Federal Reserve Board. Second quarter money flows into REITs subsequently slowed as investors turned their attention to the rebounding S&P 500. In the third quarter, momentum in the REIT sector resumed, and performance was led by investments in the office, hotel and industrial sectors. We maintained an overweighting in these areas as their internal and acquisition growth fundamentals suggested positive future performance. TOP TEN HOLDINGS
% of Net Assets Equity Office Properties Trust 6.4 Mack-Cali Realty Corp. 5.1 Security Capital Group, Inc. (Class B) 4.4 Security Capital Pacific Trust 4.1 Vornado Realty Trust 4.1 First Industrial Realty Trust, Inc. 3.7 Apartment Investment & Mgmt Co. (Class A) 3.7 Liberty Property Trust 3.5 Catellus Development Corp. 3.5 General Growth Properties, Inc. 3.4
AS OF DECEMBER 31, 1997
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC A below-market weighting in health care and lagging performance in the office sector penalized the portfolio in the fourth quarter. Overall, investor interest in REITs grew significantly in 1997. Money flows into REIT mutual funds were healthy, approaching $5 billion for the year. In addition, market capitalization for the REIT sector jumped 60% to stand at $145 billion by year-end. In an environment where the earnings growth of the broader market is coming into question and S&P 500 dividend yields are at historic lows, we believe that REITs offer attractive total return potential for investors looking to diversify their portfolios. EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
PORTFOLIO COMPOSITION Apartments 16.2% Community Centers 11.9% Industrial 25.6% Lodging 2.9% Manufactured Homes 3.0% Office 17.2% Shopping Malls 7.8% Other 7.9% Cash 7.5% as of December 31, 1997
GROWTH OF $10,000 SINCE INCEPTION EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
COLUMBIA NATIONAL ASSOCIATION REAL ESTATE OF REAL ESTATE EQUITY FUND INVESTMENT TRUSTS 4/1/94 $10,000 $10,000 12/31/94 $10,176 $9,978 12/31/95 $11,892 $11,502 12/31/96 $16,446 $15,558 12/31/97 $20,515 $18,710 Average Annual Total Returns As of December 31, 1997 CREF NAREIT 1 Year 24.74% 20.26% Since Inception 20.82% 17.92% Past Performance is not predictive of future performance.
8 INVESTMENT REVIEW - -------------------------------------------------------------------------------- - ---- ---- -- COLUMBIA BALANCED FUND -- ---------------------------- Columbia Balanced Fund returned 18.74% for the 1997 year. While large company stocks led the market in the first half, we maintained a market underweighting in them because we believed much of their price appreciation was unrelated to improving fundamentals. Not surprisingly, large company stocks corrected in the third quarter, as investors questioned the continued earnings growth of this richly valued sector. In the fourth quarter, however, market turmoil in Southeast Asia prompted investors to migrate back to large company stocks in search of greater liquidity. Overall, the equity portion of the portfolio benefited from holdings in financial services (Freddie Mac), diversified manufacturing (General Electric and Tyco Intl.), and consumer goods and services (Mattel and Service Corp. Intl.), due to their relative immunity to economic turmoil outside the U.S. TOP TEN STOCK HOLDINGS
% of Net Assets General Electric Co. 1.6 Merck & Co. 1.6 Freddie Mac 1.6 Mattel, Inc. 1.4 First Union Corp. 1.3 Tyco International Ltd. 1.3 Lilly (Eli) & Co. 1.3 Service Corp. International 1.2 Sunbeam Corp. 1.1 Bristol-Myers Squibb Co. 1.1
As of December 31, 1997 Economically sensitive cyclical stocks were influenced by volatile activity overseas, and portfolio holdings in these sectors suffered. Growth slowed worldwide, particularly in a number of natural resource-hungry developing countries. Concern about lower commodity prices led the Fund to reduce exposure to energy, forest products and chemical industries. In light of the rapid economic slowdown in Southeast Asia, technology holdings were scaled back late in the year, reflecting a growing concern about earnings expectations. 9 INVESTMENT REVIEW - -------------------------------------------------------------------------------- - ---- ---- -- COLUMBIA DAILY INCOME COMPANY -- ----------------------------------- Columbia Daily Income Company generated a total return of 5.11% for the twelve months ended December 31, 1997. This rate of return compares favorably to the rate of inflation as measured by the Consumer Price Index (1.7%). During the year, the Fund's 7-day average yield rose from 4.87% in January to 5.21% at year-end. While long-term interest rates declined during the year, money market rates rose slightly due to the Federal Reserve Board's .25% increase in the Federal Funds rate in March. In addition, the supply of short- term instruments later in the year was particularly strong, driving up the yields on money market instruments in December. PORTFOLIO HIGHLIGHTS Current Yield 5.21% Compound Yield 5.35%
Based on the 7 days ended December 31, 1997 Weighted Average Maturity 31.4 days
As of December 31, 1997 Because of the subdued rate of inflation, the Federal Reserve Board has left short-term rates untouched since March 25, despite a steadily growing economy. The outlook for short-term rates remains unchanged for the next few months. As always, Columbia Daily Income Company invests only in high quality, short- term debt instruments with an average maturity of 30 to 50 days, providing a very liquid, low risk investment. The Fund seeks to provide the highest level of income available that is consistent with the maintenance of liquidity and preservation of capital by investing in various money market instruments. These include commercial paper, U.S. Treasury Bills, U.S. Government agency discount notes and certificates of deposit. AT THIS TIME, MONEY MARKET YIELDS ARE VERY ATTRACTIVE RELATIVE TO THE EXPECTED RATE OF INFLATION. GROWTH OF $10,000 OVER 10 YEARS EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
COLUMBIA DAILY INCOME COMPANY CONSUMER PRICE INDEX (INFLATION) 12/31/87 $10,000 $10,000 12/31/88 $10,707 $10,407 12/31/89 $11,659 $10,922 12/31/90 $12,573 $11,630 12/31/91 $13,285 $11,960 12/31/92 $13,716 $12,358 12/31/93 $14,061 $12,648 12/31/94 $14,578 $12,981 12/31/95 $15,378 $13,323 12/31/96 $16,141 $13,770 12/31/97 $16,967 $13,957 Average Annual Total Returns as of December 31, 1997 CDIC CPI 1 Year 5.11% 1.70% 5 Years 4.35% 2.58% 10 Years 5.43% 3.39% Past Performance is not predictive of future results.
10 INVESTMENT REVIEW - -------------------------------------------------------------------------------- - ---- ---- -- U.S. GOVERNMENT SECURITIES FUND -- ------------------------------------- For the year ended 1997, Columbia U.S. Government Securities Fund had a total return of 5.76%. This rate of return compares very favorably to the rate of inflation as measured by the Consumer Price Index, which has increased only 1.7% for the twelve months ended December 31, 1997. Investors' interest in fixed income securities was renewed during the year, as it became EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
PORTFOLIO COMPOSITION Treasury/Agency Obligations 98.1% Cash 1.9% as of December 31, 1997
clear that the stock market was growing increasingly volatile and that a modestly growing economy was not being accompanied by a strong threat of inflation. Continued economic growth combined with low inflation has caused the Federal Reserve Board to keep interest rates unchanged since March 25th. With market turmoil in Southeast Asia, short-term Treasuries, such as those held by the Fund, are often viewed as a safe haven for investors. PORTFOLIO HIGHLIGHTS Current Yield 4.92%
Based on the 30 days ended December 31, 1997 Weighted Averages Duration 1.76 years Maturity 1.9 years
As of December 31, 1997 GROWTH OF $10,000 OVER 10 YEARS EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
COLUMBIA MERRILL U.S. LYNCH CONSUMER GOVERNMENT 1-3 PRICE SECURITIES TREASURY INDEX FUND INDEX (INFLATION) 12/31/87 $10,000 $10,000 $10,000 12/31/88 $10,534 $10,623 $10,407 12/31/89 $11,548 $11,778 $10,922 12/31/90 $12,621 $12,924 $11,630 12/31/91 $14,227 $14,433 $11,960 12/31/92 $15,053 $15,342 $12,324 12/31/93 $15,943 $16,172 $12,648 12/31/94 $15,938 $16,265 $12,981 12/31/95 $17,565 $18,054 $13,323 12/31/96 $18,242 $18,953 $13,770 12/31/97 $19,295 $20,211 $13,957 Average Annual Total Returns as of December 31, 1997 CUSG Merrill 1-3 1 Year 5.76% 6.66% 5 Years 5.09% 5.67% 10 Years 6.79% 7.29% Past Performance is not predictive of future results.
11 INVESTMENT REVIEW - -------------------------------------------------------------------------------- - ---- ---- -- COLUMBIA FIXED INCOME SECURITIES FUND -- ------------------------------------------- For 1997, Columbia Fixed Income Securities Fund posted a total return of 9.56%. Although bonds suffered early in the year under pressures of a rapidly growing economy and rising interest rates, the bond market closed the year with a powerful rally triggered by market turmoil in Southeast Asia. After a volatile first quarter, bonds responded positively in the second and third quarters to a moderately growing economy with little sign of inflation. As worldwide stock market volatility intensified in the fourth quarter, investors sought refuge in fixed income. To take advantage of the changing dynamics in this arena, we initiated several shifts in asset allocation. For instance, the yield differential between mortgages and Treasuries fluctuated periodically throughout the year, providing us with opportunities to increase mortgage weightings when prices were low, and decrease mortgage weightings (take profits) when prices crept up. As interest rates dropped in the fourth quarter, we reduced the average coupon (fixed interest rate paid on bonds) of mortgage securities in order to stave off any price deterioration resulting from homeowners refinancing their mortgages (prepayment risk). EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
PORTFOLIO COMPOSITION Collateralized Mortgage Obligations 47.5% Corporate Bonds 25.9% Treasury/Agency Obligations 14.2% Mortgage Pass-Throughs 4.3% Asset Backed Securities 3.0% Cash 5.1% as of December 31, 1997
The corporate bond sector became attractive when their prices declined relative to Treasuries. We then increased the corporate bond weighting by approximately 3% in the fourth quarter, mostly in the finance sector. Short-term asset-backed securities, such as home equity loans, performed quite well in the fourth quarter, and we took profits in this sector. The Fund invests in a broad range of fixed income securities. At least 95% of assets are invested in debt securities rated Baa or higher, although the vast majority is usually invested in securities rated A or higher. The average target maturity and duration of the Fund are approximately 5.5 years and 4.6 years, respectively, which is slightly longer than the Fund's benchmark, the Lehman Aggregate Bond Index. EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
PORTFOLIO QUALITY Treasury/Agency Obligations 58.8% Aaa 14.9% Aa 3.3% A 9.2% Baa 10.8% Other 3.0% as of December 31, 1997 as rated by Moody's Investor Services, Inc.
GROWTH OF $10,000 OVER 10 YEARS EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
COLUMBIA CONSUMER FIXED INCOME LEHMAN PRICE INDEX SECURITIES FUND AGGREGATE (INFLATION) 12/31/87 $10,000 $10,000 $10,000 12/31/88 $10,772 $10,789 $10,407 12/31/89 $12,318 $12,357 $10,922 12/31/90 $13,340 $13,464 $11,630 12/31/91 $15,587 $15,618 $11,960 12/31/92 $16,832 $16,774 $12,324 12/31/93 $18,594 $18,409 $12,648 12/31/94 $17,970 $17,872 $12,981 12/31/95 $21,368 $21,173 $13,323 12/31/96 $22,088 $21,941 $13,770 12/31/97 $24,196 $24,059 $13,957 Average Annual Total Returns As of December 31, 1997 CFIS Lehman Aggregate 1 Year 9.56% 9.65% 5 Years 7.53% 7.48% 10 Years 9.24% 9.18% Past Performance is not predictive of future performance.
12 INVESTMENT REVIEW - -------------------------------------------------------------------------------- - ---- ---- -- COLUMBIA MUNICIPAL BOND FUND -- ---------------------------------- Columbia Municipal Bond Fund returned 8.36% for the twelve months ended December 31, 1997. During the first half of the year, fixed income securities experienced price volatility as first quarter economic growth exceeded expectations and the Federal Reserve Board hiked short-term interest rates by .25% to ward off inflation. Bonds recovered from this volatility in the second quarter, and continued to appreciate in the third quarter as moderate growth persisted with little sign of inflation. As a result, interest rates on long-term municipal securities fell approximately .20% by September 30. EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
PORTFOLIO COMPOSITION State of Oregon General Obligations 8.5% Oregon General Obligation Bonds 19.6% Oregon Revenue Bonds 14.7% Oregon Other Bonds 2.6% Other Bonds 7.2% Oregon Insured Bonds 35.4% Oregon Pre-Refunded Bonds 9.1% Cash 2.9% as of December 31, 1997
In the fourth quarter, volatility in the international markets prompted a flight to high quality U.S. Treasuries, further driving bond prices up and yields down. With concern about a delayed recovery in Southeast Asia, investors have lowered their expectations for corporate earnings growth in 1998. These concerns, combined with low reported inflation and a reduced federal budget deficit (which will lower the supply of Treasuries going forward), sent Treasury and municipal yields to lower levels by year-end. Yields on municipal securities fell another .20% during the fourth quarter, pushing down 30-year municipal bonds to their lowest yields in 10 years. The supply of new Oregon bonds remains low, as voters hesitate to approve new taxes. With low interest rates, however, we anticipate that the supply of new Oregon bonds will increase as older issues are refunded and issuers take advantage of lower rates. In trading activity during the year, we endeavored to replace short-term, pre- refunded bonds with longer term, higher yielding bonds to lock in higher rates in a declining interest rate environment. At year-end, the average maturity of the Fund's portfolio was intermediate term, at 11 to 12 years, and its duration was approximately 6.5 years. As always, the Fund maintains a high average credit quality and is broadly diversified within the State. We remain committed to providing shareholders with high, after tax returns combined with a low level of credit risk and low volatility. EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
PORTFOLIO QUALITY Aaa 55.3% Aa 24.4% A 14.0% Baa 1.0% Not Rated 5.3% as of December 31, 1997 as rated by Moody's Investor Services, Inc.
GROWTH OF $10,000 OVER 10 YEARS EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
COLUMBIA LEHMAN GENERAL CONSUMER MUNICIPAL OBLIGATION PRICE INDEX BOND FUND INDEX (INFLATION) 12/31/87 $10,000 $10,000 $10,000 12/31/88 $11,019 $10,767 $10,407 12/31/89 $12,005 $11,856 $10,922 12/31/90 $12,832 $12,658 $11,630 12/31/91 $14,338 $14,101 $11,960 12/31/92 $15,264 $15,338 $12,324 12/31/93 $16,902 $17,137 $12,648 12/31/94 $16,111 $16,335 $12,981 12/31/95 $18,390 $18,975 $13,323 12/31/96 $19,084 $19,874 $13,770 12/31/97 $20,680 $21,629 $13,957 Average Annual Total Returns As of December 31, 1997 CMBF Lehman G.O. 1 Year 8.36% 8.80% 5 Years 6.26% 7.11% Since Inception 7.54% 8.02% Past Performance is not predictive of future performance.
13 INVESTMENT REVIEW - -------------------------------------------------------------------------------- - ---- ---- -- COLUMBIA HIGH YIELD FUND -- ------------------------------ [LOGO] The Fund posted a total return of 12.70% for the twelve months ended December 31, 1997. Early in the year, the fixed income market suffered from a rapidly expanding economy and rising interest rates. But as bond investors began to realize that growth would not be accompanied by higher inflation, bond prices appreciated throughout the year. As in 1996, the high yield sector of the bond market again outperformed investment-grade bonds in 1997. This caps off several consecutive years of solid performance by high yield bonds, thanks to positive fundamentals and growing investor interest. In 1997, for example, the high yield market grew by over 26% with $135 billion in new issues coming to market from over 700 issuers. Flow of money into high yield funds rose by 42% during the year to $22 billion, as investors continued to view high yield bonds as excellent tools for diversification. In trading activity, positive fundamentals led us to emphasize the media sector throughout much of the SECTORS OF EMPHASIS
% of Net Assets Business Services 3.9 Chemicals 2.0 Metals/Mining 2.0 Hotels/Gaming 4.8 Health Care 7.0
As of December 31, 1997 year with particular emphasis in broadcasting. We also favored specialty retailing and entertainment, both of which contributed positively to Fund performance. As commodity prices came under pressure in the fourth quarter because of the currency crisis in Southeast Asia, bonds in the energy sector were pared back. To reduce exposure to economically sensitive issues on the chance that economic growth will moderate, we also reduced bonds issued by companies in cyclical industries like paper and chemical. For the coming year, favorable conditions such as continuing economic growth, low inflation, and positive cash flows into high yield mutual funds should continue to make this market attractive for the near term. EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
PORTFOLIO QUALITY Ba 41.0% B 59.0% as of December 31, 1997 as rated by Moody's Investor Services, Inc.
GROWTH OF $10,000 SINCE INCEPTION EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
COLUMBIA HIGH YIELD FUND SALOMON BB 10/1/93 $10,000 $10,000 12/31/93 $10,112 $10,185 12/31/94 $10,019 $10,048 12/31/95 $11,935 $12,321 12/31/96 $13,060 $13,429 12/31/97 $14,717 $15,142 Average Annual Total Returns as of December 31, 1997 CHYF Salomon BB 1 Year 12.70% 12.76% 3 Years 13.68% 14.65% Since Inception 9.40% 10.13% Past Performance is not predictive of future performance. LIPPER HIGH YIELD BOND FUND INDEX 10/1/93 $10,000 12/31/93 $10,498 12/31/94 $10,113 12/31/95 $11,870 12/31/96 $13,373 12/31/97 $15,100 Average Annual Total Returns as of December 31, 1997 Lipper HYBF 1 Year 12.91% 3 Years 14.30% Since Inception 10.06% Past Performance is not predictive of future performance.
14 FINANCIAL HIGHLIGHTS ----------------------------------------------------------------- FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD - ---- ---- -- COLUMBIA COMMON STOCK FUND, INC. -- -------------------------------------- [LOGO]
1997 1996 1995 1994 1993 ----- ----- ----- ----- ----- - --------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $19.26 $18.59 $15.16 $15.29 $14.04 - --------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income................. .29 .25 .26 .27 .22 Net realized and unrealized gains on investments......................... 4.58 3.61 4.38 .04 2.08 - --------------------------------------------------------------------------------------------------- Total from investment operations.... 4.87 3.86 4.64 .31 2.30 - --------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Dividends (from net investment income)............................. (.27) (.23) (.26) (.25) (.21) Distributions (from capital gains).... (1.84) (2.96) (.95) (.19) (.84) - --------------------------------------------------------------------------------------------------- Total distributions................. (2.11) (3.19) (1.21) (.44) (1.05) - --------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $22.02 $19.26 $18.59 $15.16 $15.29 - --------------------------------------------------------------------------------------------------- TOTAL RETURN............................ 25.37% 20.71% 30.84% 2.06% 16.44% RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in thousands)............................ $783,906 $536,760 $358,523 $124,263 $100,715 Ratio of expenses to average net assets................................ 0.77% 0.76% 0.80% 0.84% 0.84% Ratio of net investment income to average net assets.................... 1.37% 1.32% 1.68% 1.82% 1.48% Portfolio turnover rate................. 90.23% 111.39% 75.36% 64.21% 90.90% Average commission rate paid on portfolio transactions (1)............ $0.0601 $0.0601
(1) The average commission rate paid by the fund is computed by dividing the dollar amount of commissions paid during the period by the total number of shares purchased and sold during the period for which commissions were charged. - -------------------------------------------------------------------------------- 15 FINANCIAL HIGHLIGHTS ----------------------------------------------------------------- FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD - ---- ---- -- COLUMBIA GROWTH FUND, INC. -- -------------------------------- [LOGO]
1997 1996 1995 1994 1993 ----- ----- ----- ----- ----- - ------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $30.74 $29.84 $24.84 $26.38 $26.18 - ------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income................. .19 .19 .31 .29 .16 Net realized and unrealized gains (losses) on investments............. 7.90 6.04 7.86 (.46) 3.24 - ------------------------------------------------------------------------------------------------------- Total from investment operations.... 8.09 6.23 8.17 (.17) 3.40 - ------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Dividends (from net investment income)............................. (.17) (.17) (.29) (.26) (.18) Distributions (from capital gains).... (4.32) (5.14) (2.87) (1.11) (2.98) Distributions (in excess of capital gains).............................. (.02) (.01) (.04) - ------------------------------------------------------------------------------------------------------- Total distributions................. (4.49) (5.33) (3.17) (1.37) (3.20) - ------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $34.34 $30.74 $29.84 $24.84 $26.38 - ------------------------------------------------------------------------------------------------------- TOTAL RETURN............................ 26.32% 20.80% 32.98% -0.63% 13.01% RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in thousands)............................ $1,324,918 $1,064,100 $848,731 $591,694 $605,401 Ratio of expenses to average net assets................................ 0.71% 0.71% 0.75% 0.81% 0.82% Ratio of net investment income to average net assets.................... 0.55% 0.63% 1.14% 1.12% 0.66% Portfolio turnover rate................. 95.67% 75.49% 94.73% 79.28% 105.64% Average commission rate paid on portfolio transactions (1)............ $0.0594 $0.0590
(1) The average commission rate paid by the fund is computed by dividing the dollar amount of commissions paid during the period by the total number of shares purchased and sold during the period for which commissions were charged. - -------------------------------------------------------------------------------- 16 FINANCIAL HIGHLIGHTS ----------------------------------------------------------------- FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD - ---- ---- -- COLUMBIA INTERNATIONAL STOCK FUND, INC. -- --------------------------------------------- [LOGO]
1997 1996 1995 1994 1993 ----- ----- ----- ----- ----- - ---------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $13.86 $13.07 $12.43 $12.96 $9.95 - ---------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)..... .03 .03 .02 (.02) (.02) Net realized and unrealized gains (losses) on investments and foreign currency transactions................... 1.56 2.13 .62 (.30) 3.34 - ---------------------------------------------------------------------------------------------- Total from investment operations................... 1.59 2.16 .64 (.32) 3.32 - ---------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Dividends (from net investment income)........................ (.03) Dividends (in excess of net investment income)............. (.20) Distributions (from capital gains)......................... (1.75) (1.14) (.21) (.31) - ---------------------------------------------------------------------------------------------- Total distributions............ (1.75) (1.37) -- (.21) (.31) - ---------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $13.70 $13.86 $13.07 $12.43 $12.96 - ---------------------------------------------------------------------------------------------- TOTAL RETURN....................... 11.47% 16.59% 5.15% -2.47% 33.37% RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in thousands)....................... $146,281 $125,510 $100,873 $118,484 $73,047 Ratio of expenses to average net assets........................... 1.62% 1.54% 1.54% 1.52% 1.71% Ratio of net investment income (loss) to average net assets..... 0.19% 0.22% 0.15% (0.21)% (0.62)% Portfolio turnover rate............ 121.53% 129.40% 156.09% 138.79% 144.78% Average commission rate paid on portfolio transactions (1)....... $0.0039 $0.0011
(1) The average commission rate paid by the fund is computed by dividing the dollar amount of commissions paid during the period by the total number of shares purchased and sold during the period for which commissions were charged. - -------------------------------------------------------------------------------- 17 FINANCIAL HIGHLIGHTS ----------------------------------------------------------------- FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD - ---- ---- -- COLUMBIA SPECIAL FUND, INC. -- --------------------------------- [LOGO]
1997 1996 1995 1994 1993 ----- ----- ----- ----- ----- - --------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $19.85 $21.44 $18.69 $19.51 $18.79 - --------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss).......... .01 (.06) .03 .08 .01 Net realized and unrealized gains on investments......................... 2.50 2.85 5.45 .36 4.04 - --------------------------------------------------------------------------------------------------------- Total from investment operations.... 2.51 2.79 5.48 .44 4.05 - --------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Dividends (from net investment income)............................. (.02) (.07) Dividends (in excess of net investment income)............................. (.01) Distributions (from capital gains).... (2.10) (4.38) (2.68) (1.16) (3.32) Distributions (in excess of captial gains).............................. (.03) (.03) - --------------------------------------------------------------------------------------------------------- Total distributions................. (2.10) (4.38) (2.73) (1.26) (3.33) - --------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $20.26 $19.85 $21.44 $18.69 $19.51 - --------------------------------------------------------------------------------------------------------- TOTAL RETURN............................ 12.64% 13.07% 29.53% 2.29% 21.68% RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in thousands)............................ $1,249,718 $1,585,284 $1,384,415 $889,526 $772,741 Ratio of expenses to average net assets................................ 0.98% 0.94% 0.98% 1.05% 1.12% Ratio of net investment income (loss) to average net assets.................... 0.04% (0.29)% 0.16% 0.40% 0.01% Portfolio turnover rate................. 166.46% 150.07% 182.99% 178.91% 154.68% Average commission rate paid on portfolio transactions (1)............ $0.0585 $0.0553
(1) The average commission rate paid by the fund is computed by dividing the dollar amount of commissions paid during the period by the total number of shares purchased and sold during the period for which commissions were charged. - -------------------------------------------------------------------------------- 18 FINANCIAL HIGHLIGHTS ----------------------------------------------------------------- FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD - ---- ---- -- COLUMBIA SMALL CAP FUND, INC. -- ----------------------------------- [LOGO]
1997 1996(1) ----- ------- - ------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $12.99 $12.00 - ------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment loss............................. (.08) Net realized and unrealized gains on investments................................... 4.51 .99 - ------------------------------------------------------------------------- Total from investment operations.............. 4.43 .99 - ------------------------------------------------------------------------- LESS DISTRIBUTIONS: Distributions (from capital gains).............. (.77) - ------------------------------------------------------------------------- Total distributions........................... (.77) -- - ------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $16.65 $12.99 - ------------------------------------------------------------------------- TOTAL RETURN...................................... 34.10% 7.62%(2) RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in thousands).......... $96,431 $21,061 Ratio of expenses to average net assets........... 1.46% 1.61% Ratio of net investment income (loss) to average net assets...................................... (0.81)% 0.00% Portfolio turnover rate........................... 171.75% 32.57% Average commission rate paid on portfolio transactions (3)................................ $0.0564 $0.0546
(1) From inception of operations on September 11, 1996. Ratios and portfolio turnover rate are annualized. (2) Not annualized. (3) The average commission rate paid by the fund is computed by dividing the dollar amount of commissions paid during the period by the total number of shares purchased and sold during the period for which commissions were charged. - -------------------------------------------------------------------------------- 19 FINANCIAL HIGHLIGHTS ----------------------------------------------------------------- FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD - ---- ---- -- COLUMBIA REAL ESTATE EQUITY FUND, INC. -- -------------------------------------------- [LOGO]
1997 1996 1995 1994(1) ----- ----- ----- ------- - ------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $16.16 $12.71 $11.72 $12.00 - ------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income................. .79 .77 .78 .49 Net realized and unrealized gains (losses) on investments............. 3.15 3.94 1.12 (.27) - ------------------------------------------------------------------------------------- Total from investment operations.... 3.94 4.71 1.90 .22 - ------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Dividends (from net investment income)............................. (.62) (.52) (.49) (.31) Dividends (in excess of net investment income)............................. (.01) Distributions (from capital gains).... (.48) (.41) Distributions (in excess of capital gains).............................. (.03) (.12) (.14) Tax return of capital................. (.17) (.21) (.28) (.18) - ------------------------------------------------------------------------------------- Total distributions................. (1.30) (1.26) (.91) (.50) - ------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $18.80 $16.16 $12.71 $11.72 - ------------------------------------------------------------------------------------- TOTAL RETURN............................ 24.74% 38.30% 16.86% 1.76%(2) RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in thousands)............................ $151,554 $68,073 $21,587 $17,402 Ratio of expenses to average net assets................................ 1.02% 1.06% 1.18% 1.14% Ratio of net investment income to average net assets.................... 4.87% 6.23% 6.71% 6.28% Portfolio turnover rate................. 33.55% 45.82% 53.91% 7.61% Average commission rate paid on portfolio transactions (3)............ $0.0588 $0.0594
(1) From inception of operations on March 16, 1994. Ratios and portfolio turnover rate are annualized. (2) Not annualized. (3) The average commission rate paid by the fund is computed by dividing the dollar amount of commissions paid during the period by the total number of shares purchased and sold during the period for which commissions were charged. - -------------------------------------------------------------------------------- 20 FINANCIAL HIGHLIGHTS ----------------------------------------------------------------- FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD - ---- ---- -- COLUMBIA BALANCED FUND, INC. -- ---------------------------------- [LOGO]
1997 1996 1995 1994 1993 ----- ----- ----- ----- ----- - --------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $20.32 $20.08 $17.28 $17.91 $16.80 - --------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income................. .84 .76 .73 .65 .56 Net realized and unrealized gains (losses) on investments............. 2.92 1.58 3.54 (.64) 1.71 - --------------------------------------------------------------------------------------------------- Total from investment operations.... 3.76 2.34 4.27 .01 2.27 - --------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Dividends (from net investment income)............................. (.83) (.76) (.73) (.64) (.56) Dividends (in excess of net investment income)............................. (.01) Distributions (from capital gains).... (1.83) (1.34) (.74) (.59) - --------------------------------------------------------------------------------------------------- Total distributions................. (2.66) (2.10) (1.47) (.64) (1.16) - --------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $21.42 $20.32 $20.08 $17.28 $17.91 - --------------------------------------------------------------------------------------------------- TOTAL RETURN............................ 18.74% 11.78% 25.08% 0.10% 13.62% RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in thousands)............................ $792,378 $672,593 $486,767 $249,670 $186,589 Ratio of expenses to average net assets................................ 0.68% 0.66% 0.69% 0.72% 0.73% Ratio of net investment income to average net assets.................... 3.83% 3.82% 4.05% 3.82% 3.32% Portfolio turnover rate................. 148.91% 133.21% 108.04% 98.48% 107.60% Average commission rate paid on portfolio transactions (1)............ $0.0610 $0.0596
(1) The average commission rate paid by the fund is computed by dividing the dollar amount of commissions paid during the period by the total number of shares purchased and sold during the period for which commissions were charged. - -------------------------------------------------------------------------------- 21 FINANCIAL HIGHLIGHTS ----------------------------------------------------------------- FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD - ---- ---- -- COLUMBIA DAILY INCOME COMPANY -- ----------------------------------- [LOGO]
1997 1996 1995 1994 1993 ----- ----- ----- ----- ----- - ----------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 - ----------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income................. .050 .048 .053 .036 .025 - ----------------------------------------------------------------------------------------------------- Total from investment operations.... .050 .048 .053 .036 .025 - ----------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Dividends (from net investment income)............................. (.050) (.048) (.053) (.036) (.025) - ----------------------------------------------------------------------------------------------------- Total distributions................. (.050) (.048) (.053) (.036) (.025) - ----------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 - ----------------------------------------------------------------------------------------------------- TOTAL RETURN............................ 5.11% 4.96% 5.49% 3.68% 2.51% RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in thousands)............................ $1,169,096 $889,800 $800,656 $730,067 $544,500 Ratio of expenses to average net assets................................ 0.63% 0.62% 0.64% 0.70% 0.75% Ratio of net investment income to average net assets.................... 4.99% 4.84% 5.34% 3.68% 2.49%
- -------------------------------------------------------------------------------- 22 FINANCIAL HIGHLIGHTS ----------------------------------------------------------------- FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD - ---- ---- -- COLUMBIA U.S. GOVERNMENT SECURITIES FUND, INC. -- ---------------------------------------------------- [LOGO]
1997 1996 1995 1994 1993 ----- ----- ----- ----- ----- - --------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $8.24 $8.34 $7.99 $8.36 $8.35 - --------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income................. .41 .41 .45 .37 .32 Net realized and unrealized gains (losses) on investments............. .05 (.10) .35 (.37) .17 - --------------------------------------------------------------------------------------------------- Total from investment operations.... .46 .31 .80 -- .49 - --------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Dividends (from net investment income)............................. (.41) (.41) (.45) (.37) (.32) Distributions (from capital gains).... (.16) - --------------------------------------------------------------------------------------------------- Total distributions................. (.41) (.41) (.45) (.37) (.48) - --------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $8.29 $8.24 $8.34 $7.99 $8.36 - --------------------------------------------------------------------------------------------------- TOTAL RETURN............................ 5.76% 3.85% 10.21% -0.03% 5.91% RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in thousands)............................ $37,837 $40,776 $41,842 $33,512 $35,877 Ratio of expenses to average net assets................................ 0.87% 0.80% 0.79% 0.81% 0.75% Ratio of net investment income to average net assets.................... 4.99% 4.99% 5.45% 4.51% 3.74% Portfolio turnover rate................. 184.43% 179.38% 253.17% 253.80% 254.59%
- -------------------------------------------------------------------------------- 23 FINANCIAL HIGHLIGHTS ----------------------------------------------------------------- FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD - ---- ---- -- COLUMBIA FIXED INCOME SECURITIES FUND, INC. -- ------------------------------------------------- [LOGO]
1997 1996 1995 1994 1993 ----- ----- ----- ----- ----- - --------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $13.08 $13.51 $12.16 $13.44 $13.28 - --------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income................. .85 .85 .88 .83 .85 Net realized and unrealized gains (losses) on investments............. .36 (.43) 1.35 (1.28) .52 - --------------------------------------------------------------------------------------------------- Total from investment operations.... 1.21 .42 2.23 (.45) 1.37 - --------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Dividends (from net investment income)............................. (.85) (.85) (.88) (.83) (.85) Distributions (from capital gains).... (.03) (.36) - --------------------------------------------------------------------------------------------------- Total distributions................. (.88) (.85) (.88) (.83) (1.21) - --------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $13.41 $13.08 $13.51 $12.16 $13.44 - --------------------------------------------------------------------------------------------------- TOTAL RETURN............................ 9.56% 3.37% 18.91% -3.36% 10.47% RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in thousands)............................ $381,333 $356,421 $316,259 $252,090 $300,532 Ratio of expenses to average net assets................................ 0.66% 0.64% 0.65% 0.66% 0.66% Ratio of net investment income to average net assets.................... 6.43% 6.53% 6.80% 6.53% 6.14% Portfolio turnover rate................. 196.28% 178.25% 137.41% 139.81% 118.80%
- -------------------------------------------------------------------------------- 24 FINANCIAL HIGHLIGHTS ----------------------------------------------------------------- FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD - ---- ---- -- COLUMBIA MUNICIPAL BOND FUND, INC. -- ---------------------------------------- [LOGO]
1997 1996 1995 1994 1993 ----- ----- ----- ----- ----- - --------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $12.15 $12.37 $11.48 $12.71 $12.17 - --------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income................. .60 .61 .63 .64 .66 Net realized and unrealized gains (losses) on investments............. .39 (.16) .96 (1.23) .62 - --------------------------------------------------------------------------------------------------- Total from investment operations.... .99 .45 1.59 (.59) 1.28 - --------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Dividends (from net investment income) (1)................................. (.60) (.61) (.63) (.64) (.66) Distributions (from capital gains).... (.07) (.06) (.07) (.08) - --------------------------------------------------------------------------------------------------- Total distributions................. (.67) (.67) (.70) (.64) (.74) - --------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $12.47 $12.15 $12.37 $11.48 $12.71 - --------------------------------------------------------------------------------------------------- TOTAL RETURN............................ 8.36% 3.77% 14.15% -4.68% 10.73% RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in thousands)............................ $409,148 $375,667 $383,796 $339,817 $430,367 Ratio of expenses to average net assets................................ 0.57% 0.56% 0.57% 0.57% 0.58% Ratio of net investment income to average net assets.................... 4.87% 5.00% 5.22% 5.36% 5.25% Portfolio turnover rate................. 16.88% 19.03% 21.45% 19.40% 9.92%
(1) 100% exempt from federal taxation. - -------------------------------------------------------------------------------- 25 FINANCIAL HIGHLIGHTS ----------------------------------------------------------------- FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD - ---- ---- -- COLUMBIA HIGH YIELD FUND, INC. -- ------------------------------------ [LOGO]
1997 1996 1995 1994 1993(1) ----- ----- ----- ----- ------- - ----------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $9.94 $9.88 $9.04 $9.94 $10.00 - ----------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income................. .81 .81 .82 .80 .18 Net realized and unrealized gains (losses) on investments............. .40 .07 .84 (.90) (.06) - ----------------------------------------------------------------------------------------------------------- Total from investment operations.... 1.21 .88 1.66 (.10) .12 - ----------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Dividends (from net investment income)............................. (.81) (.81) (.82) (.80) (.18) Distributions (from capital gains).... (.30) (.01) - ----------------------------------------------------------------------------------------------------------- Total distributions................. (1.11) (.82) (.82) (.80) (.18) - ----------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $10.04 $9.94 $9.88 $9.04 $9.94 - ----------------------------------------------------------------------------------------------------------- TOTAL RETURN............................ 12.70% 9.43% 19.12% -0.92% 1.12%(2) RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in thousands)............................ $39,278 $28,818 $23,471 $12,834 $5,940 Ratio of expenses to average net assets (3)................................... 1.00% 0.93% 1.00% 1.00% 1.00% Ratio of net investment income to average net assets.................... 8.05% 8.29% 8.62% 8.69% 7.30% Portfolio turnover rate................. 124.23% 62.27% 51.60% 36.67% 0.00%
(1) From inception of operations on September 15, 1993. Ratios and portfolio turnover rate are annualized. (2) Not annualized. (3) The ratio was 1.02% in 1997, 1.00% in 1996, 1.06% in 1995, 1.19% in 1994 and 2.03% in 1993, before voluntary reimbursement. - -------------------------------------------------------------------------------- 26 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - --------------------- --------------------- -- COLUMBIA COMMON STOCK FUND, INC. -- --------------------------------------------
SHARES OR PRINCIPAL December 31, 1997 AMOUNT VALUE(1) ------------- -------------- COMMON STOCKS (93.0%) FINANCE (10.0%) American Express Co. ................................................................. 100,900 $ 9,005,325 American General Corp. ............................................................... 209,600 11,331,500 BankAmerica Corp. .................................................................... 99,600 7,270,800 Berkley (W.R.) Corp. ................................................................. 150,000 6,581,250 *CIT Group, Inc. (Class A)............................................................ 200,000 6,450,000 First Union Corp. .................................................................... 261,300 13,391,625 NationsBank Corp. .................................................................... 126,000 7,662,375 PNC Bank Corp. ....................................................................... 140,900 8,040,106 U.S. Bancorp.......................................................................... 74,044 8,288,300 -------------- 78,021,281 -------------- BUILDING & FORESTRY PRODUCTS (1.4%) Willamette Industries, Inc. .......................................................... 334,400 10,763,500 -------------- BUSINESS & CONSUMER SERVICES (1.7%) Service Corporation Int'l. ........................................................... 367,500 13,574,531 -------------- CHEMICAL (1.0%) IMC Global, Inc. ..................................................................... 242,000 7,925,500 -------------- CONSUMER NON-DURABLE (11.5%) *Costco Cos., Inc. ................................................................... 200,000 8,925,000 *Federated Department Stores, Inc. ................................................... 254,500 10,959,406 Home Depot, Inc. ..................................................................... 140,500 8,271,937 Liz Claiborne, Inc. .................................................................. 223,000 9,324,188 Mattel, Inc. ......................................................................... 259,250 9,657,063 *Meyer (Fred), Inc. .................................................................. 600,000 21,825,000 Nordstrom, Inc. ...................................................................... 225,000 13,584,375 Wal-Mart Stores, Inc. ................................................................ 192,500 7,591,719 -------------- 90,138,688 -------------- CONSUMER STAPLES (16.8%) American Stores Co. .................................................................. 860,000 17,683,750 Avon Products, Inc. .................................................................. 128,300 7,874,412 ConAgra, Inc. ........................................................................ 70,000 2,296,875 Gillette Co. ......................................................................... 145,000 14,563,438 Heinz (H.J.) Co. ..................................................................... 154,000 7,825,125 Kellogg Co. .......................................................................... 400,000 19,850,000 *Kroger Co. .......................................................................... 300,000 11,081,250 PepsiCo, Inc. ........................................................................ 200,000 7,287,500 Rite Aid Corp. ....................................................................... 147,200 8,638,800 *Safeway, Inc. ....................................................................... 156,000 9,867,000 Sunbeam Corp. ........................................................................ 379,400 15,982,225 Sysco Corp. .......................................................................... 200,000 9,112,500 -------------- 132,062,875 -------------- SHARES OR PRINCIPAL AMOUNT VALUE(1) ------------- -------------- ENERGY (6.8%) Burlington Resources, Inc. ........................................................... 181,017 $ 8,111,824 Exxon Corp. .......................................................................... 160,800 9,838,950 Mobil Corp. .......................................................................... 141,600 10,221,750 Royal Dutch Petroleum Co. ............................................................ 249,600 13,525,200 Texaco, Inc. ......................................................................... 212,000 11,527,500 -------------- 53,225,224 -------------- ENERGY SERVICES (1.1%) Schlumberger Ltd. .................................................................... 105,000 8,452,500 -------------- ENTERTAINMENT & MEDIA (1.2%) *Viacom, Inc. (Class B)............................................................... 235,500 9,758,531 -------------- HEALTH (12.6%) American Home Products Corp. ......................................................... 134,000 10,251,000 Bristol-Myers Squibb Co. ............................................................. 175,000 16,559,375 Lilly (Eli) & Co. .................................................................... 242,000 16,849,250 Merck & Co., Inc. .................................................................... 155,000 16,468,750 Pfizer, Inc. ......................................................................... 169,000 12,601,062 Schering-Plough Corp. ................................................................ 154,000 9,567,250 *Tenet Healthcare Corp. .............................................................. 249,300 8,258,063 Warner-Lambert Co. ................................................................... 66,000 8,184,000 -------------- 98,738,750 -------------- MACHINERY & CAPITAL SPENDING (5.4%) Case Corp. ........................................................................... 133,000 8,038,187 Deere & Co. .......................................................................... 144,700 8,437,819 Emerson Electric Co. ................................................................. 213,000 12,021,188 Tyco International Ltd. .............................................................. 303,308 13,667,817 -------------- 42,165,011 -------------- METAL MINING & STEEL (1.0%) *Getchell Gold Corp. ................................................................. 310,000 7,440,000 -------------- REAL ESTATE SECURITIES (5.8%) American Health Properties, Inc. ..................................................... 120,000 3,307,500 Equity Office Properties Trust........................................................ 174,521 5,508,319 Equity Residential Properties Trust................................................... 125,000 6,320,312 First Industrial Realty Trust, Inc. .................................................. 150,000 5,418,750 JP Realty, Inc. ...................................................................... 106,500 2,762,344 Liberty Property Trust................................................................ 120,000 3,427,500 Mack-Cali Realty Corp. ............................................................... 94,000 3,854,000 Manufactured Home Communities, Inc. .................................................. 49,000 1,323,000 Security Capital Pacific Trust........................................................ 165,500 4,013,375 Simon DeBartolo Group, Inc. .......................................................... 190,400 6,223,700 Spieker Properties, Inc. ............................................................. 79,000 3,387,125 -------------- 45,545,925 --------------
27 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - --------------------- --------------------- -- COLUMBIA COMMON STOCK FUND, INC. -- --------------------------------------------
SHARES OR PRINCIPAL AMOUNT VALUE(1) ------------- --------------
COMMON STOCKS (CONTINUED) TECHNOLOGY (8.6%) Autodesk, Inc. ....................................................................... 115,300 $ 4,266,100 Automatic Data Processing, Inc. ...................................................... 232,000 14,239,000 *Cadence Design Systems, Inc. ........................................................ 270,000 6,615,000 *Computer Sciences Corp. ............................................................. 190,200 15,881,700 *EMC Corp. ........................................................................... 260,200 7,139,238 Ericsson (L.M.) Telephone Co. (Class B) ADR........................................... 112,000 4,179,000 Hewlett-Packard Co. .................................................................. 122,400 7,650,000 Lucent Technologies, Inc. ............................................................ 94,800 7,572,150 -------------- 67,542,188 -------------- UTILITIES/COMMUNICATIONS (2.7%) AT&T Corp. ........................................................................... 124,000 7,595,000 Frontier Corp. ....................................................................... 244,300 5,878,469 SBC Communications, Inc. ............................................................. 102,400 7,500,800 -------------- 20,974,269 -------------- UTILITIES/ELECTRIC/GAS (5.4%) Cinergy Corp. ........................................................................ 237,000 9,080,063 Edison International.................................................................. 264,300 7,185,656 Idaho Power Co. ...................................................................... 236,600 8,902,075 Texas Utilities Co. .................................................................. 420,000 17,456,250 -------------- 42,624,044 -------------- Total Common Stocks (Cost $591,083,706) ................................................................. 728,952,817 --------------
SHARES OR PRINCIPAL AMOUNT VALUE(1) ------------- -------------- REPURCHASE AGREEMENTS (12.1%) Goldman Sachs Corp. 6.337% dated 12/31/1997, due 01/02/1998 in the amount of $39,316,709. Collateralized by U.S. Treasury Notes 5.875% due 08/31/1999................................................................ $ 39,303,062 $ 39,303,062 J.P. Morgan Securities, Inc. 6.521% dated 12/31/1997, due 01/02/1998 in the amount of $38,613,793. Collateralized by U.S. Treasury Notes 3.625% to 7.500% due 08/31/2000 to 02/15/2005......................................................... 38,600,000 38,600,000 Merrill Lynch 6.388% dated 12/31/1997, due 01/02/1998 in the amount of $16,705,845. Collateralized by U.S. Treasury Bonds 6.250% to 7.625% due 02/15/2023 to 08/15/2025............................................................. 16,700,000 16,700,000 -------------- Total Repurchase Agreements (Cost $94,603,062) .................................................................. 94,603,062 -------------- TOTAL INVESTMENTS (105.1%) (Cost $685,686,768)...................................................................... 823,555,879 RECEIVABLES LESS LIABILITIES (-5.1%)...................................................... (39,650,060) -------------- NET ASSETS (100.0%)....................................................................... $ 783,905,819 -------------- --------------
(1) See Note 1 of Notes to Financial Statements. * Non-income producing. The accompanying notes are an integral part of the financial statements. 28 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ------------------------- ------------------------- -- COLUMBIA GROWTH FUND, INC. -- -----------------------------------
SHARES OR PRINCIPAL December 31, 1997 AMOUNT VALUE(1) ------------- -------------- COMMON STOCKS (98.3%) FINANCE (18.8%) Allstate Corp. ....................................................................... 271,600 $ 24,681,650 American General Corp. ............................................................... 488,600 26,414,937 American International Group, Inc. ................................................... 199,225 21,665,719 Banc One Corp. ....................................................................... 300,000 16,293,750 BankAmerica Corp. .................................................................... 200,000 14,600,000 BankBoston Corp. ..................................................................... 150,000 14,090,625 Barnett Banks, Inc. .................................................................. 239,000 17,178,125 *CIT Group, Inc. (Class A)............................................................ 600,000 19,350,000 Fannie Mae............................................................................ 456,800 26,066,150 First Union Corp. .................................................................... 198,000 10,147,500 Freddie Mac........................................................................... 500,700 20,998,106 Morgan Stanley, Dean Witter, Discover & Co. .......................................... 405,080 23,950,355 NationsBank Corp. .................................................................... 232,000 14,108,500 -------------- 249,545,417 -------------- BUILDING & FORESTRY PRODUCTS (1.2%) *Crown Vantage, Inc. ................................................................. 195,100 1,365,700 Mead Corp. ........................................................................... 500,000 14,000,000 -------------- 15,365,700 -------------- BUSINESS & CONSUMER SERVICES (7.9%) *Cendant Corp. ....................................................................... 1,231,550 42,334,531 *Corrections Corporation of America................................................... 400,000 14,825,000 *FIserv, Inc. ........................................................................ 300,500 14,762,063 McKesson Corp. ....................................................................... 148,900 16,109,119 Service Corporation Int'l. ........................................................... 448,300 16,559,081 -------------- 104,589,794 -------------- CONSUMER DURABLE (0.1%) *Sonic Automotive, Inc. .............................................................. 132,500 1,275,312 -------------- CONSUMER NON-DURABLE (16.7%) *Consolidated Stores Corp. ........................................................... 491,200 21,582,100 *Federated Department Stores, Inc. ................................................... 402,800 17,345,575 Home Depot, Inc. ..................................................................... 135,100 7,954,012 Liz Claiborne, Inc. .................................................................. 290,000 12,125,625 Mattel, Inc. ......................................................................... 643,400 23,966,650 *Neiman-Marcus Group, Inc. ........................................................... 240,400 7,272,100 *Office Depot, Inc. .................................................................. 596,800 14,285,900 *Payless ShoeSource, Inc. ............................................................ 380,200 25,520,925 Royal Caribbean Cruises Ltd. ......................................................... 300,000 15,993,750 Tandy Corp. .......................................................................... 697,600 26,901,200 Unifi, Inc. .......................................................................... 200,000 8,137,500 SHARES OR PRINCIPAL AMOUNT VALUE(1) ------------- -------------- Warnaco Group, Inc. (Class A)......................................................... 1,290,300 $ 40,483,163 -------------- 221,568,500 -------------- CONSUMER STAPLES (14.8%) Avon Products, Inc. .................................................................. 215,100 13,201,762 CVS Corp. ............................................................................ 190,000 12,171,875 Gillette Co. ......................................................................... 312,100 31,346,544 Kellogg Co. .......................................................................... 106,000 5,260,250 Libbey, Inc. ......................................................................... 390,500 14,790,188 Philip Morris Cos., Inc. ............................................................. 600,000 27,187,500 Rite Aid Corp. ....................................................................... 533,925 31,334,723 *Safeway, Inc. ....................................................................... 327,700 20,727,025 Sunbeam Corp. ........................................................................ 600,000 25,275,000 Sysco Corp. .......................................................................... 328,400 14,962,725 -------------- 196,257,592 -------------- ENERGY (1.4%) Anadarko Petroleum Corp. ............................................................. 177,000 10,741,688 Apache Corp. ......................................................................... 203,700 7,142,231 -------------- 17,883,919 -------------- ENERGY SERVICES (0.9%) Schlumberger Ltd. .................................................................... 150,000 12,075,000 -------------- HEALTH (13.0%) American Home Products Corp. ......................................................... 180,000 13,770,000 *Apria Healthcare Group, Inc. ........................................................ 901,720 12,116,862 Bristol-Myers Squibb Co. ............................................................. 244,500 23,135,812 *Ethical Holdings Ltd. ADR............................................................ 283,000 884,375 Lilly (Eli) & Co. .................................................................... 322,100 22,426,213 Merck & Co., Inc. .................................................................... 246,200 26,158,750 Pfizer, Inc. ......................................................................... 327,300 24,404,306 Schering-Plough Corp. ................................................................ 217,600 13,518,400 *Tenet Healthcare Corp. .............................................................. 745,900 24,707,938 Warner-Lambert Co. ................................................................... 83,800 10,391,200 -------------- 171,513,856 -------------- HOTELS & GAMING (1.4%) *Host Marriott Corp. ................................................................. 390,000 7,653,750 *Station Casinos, Inc. ............................................................... 1,076,600 10,967,863 -------------- 18,621,613 -------------- MACHINERY & CAPITAL SPENDING (5.2%) Emerson Electric Co. ................................................................. 361,000 20,373,938 General Electric Co. ................................................................. 150,000 11,006,250 Tyco International Ltd. .............................................................. 830,354 37,417,827 -------------- 68,798,015 --------------
29 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ------------------------- ------------------------- -- COLUMBIA GROWTH FUND, INC. -- -----------------------------------
SHARES OR PRINCIPAL AMOUNT VALUE(1) ------------- --------------
COMMON STOCKS (CONTINUED) REAL ESTATE SECURITIES (4.0%) Duke Realty Investments, Inc. ........................................................ 168,200 $ 4,078,850 Equity Office Properties Trust........................................................ 111,800 3,528,688 Equity Residential Properties Trust................................................... 219,900 11,118,694 JP Realty, Inc. ...................................................................... 350,000 9,078,125 Public Storage, Inc. ................................................................. 50,000 1,468,750 Simon DeBartolo Group, Inc. .......................................................... 144,300 4,716,806 TriNet Corporate Realty Trust, Inc. .................................................. 146,000 5,648,375 Vornado Realty Trust.................................................................. 294,800 13,837,175 -------------- 53,475,463 -------------- TECHNOLOGY (12.9%) Autodesk, Inc. ....................................................................... 114,700 4,243,900 *Cadence Design Systems, Inc. ........................................................ 543,000 13,303,500 *Cisco Systems, Inc. ................................................................. 590,700 32,931,525 Computer Associates International, Inc. .............................................. 158,250 8,367,469 *Computer Sciences Corp. ............................................................. 289,500 24,173,250 *EMC Corp. ........................................................................... 379,600 10,415,275 Ericsson (L.M.) Telephone Co. (Class B) ADR........................................... 171,400 6,395,362 Hewlett-Packard Co. .................................................................. 202,900 12,681,250 Intel Corp. .......................................................................... 200,800 14,106,200 Lucent Technologies, Inc. ............................................................ 159,800 12,764,025 *Microsoft Corp. ..................................................................... 151,500 19,581,375 *Tellabs, Inc. ....................................................................... 225,000 11,896,875 -------------- 170,860,006 -------------- Total Common Stocks (Cost $998,562,165) ................................................................. 1,301,830,187 --------------
SHARES OR PRINCIPAL AMOUNT VALUE(1) ------------- -------------- REPURCHASE AGREEMENT (2.1%) Goldman Sachs Corp. 6.337% dated 12/31/1997, due 01/02/1998 in the amount of $27,758,843 Collateralized by U.S. Treasury Notes 5.875% due 08/31/1999 (Cost $27,749,208)................................................................... $ 27,749,208 $ 27,749,208 -------------- TOTAL INVESTMENTS (100.4%) (Cost $1,026,311,373).................................................................... 1,329,579,395 RECEIVABLES LESS LIABILITIES (-0.4%)...................................................... (4,661,706) -------------- NET ASSETS (100.0%)....................................................................... $1,324,917,689 -------------- --------------
(1) See Note 1 of Notes to Financial Statements. * Non-income producing. The accompanying notes are an integral part of the financial statements. 30 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ------------------ ------------------ -- COLUMBIA INTERNATIONAL STOCK FUND, INC. -- ---------------------------------------------
SHARES OR PRINCIPAL December 31, 1997 AMOUNT VALUE(1) ------------- -------------- COMMON STOCKS (86.2%) ARGENTINA (1.1%) Banco de Galicia y Buenos Aires SA de CV, ADR (Banking)............................... 16,300 $ 419,725 *Disco SA, ADR (Retail)............................................................... 26,000 1,157,000 -------------- 1,576,725 -------------- BELGIUM (0.6%) *Lernout & Hauspie Speech Products NV (Business Services)............................. 20,000 930,000 -------------- BRAZIL (0.5%) Cia Tecidos do Norte de Minas SA (Textiles)........................................... 1,973,067 707,192 -------------- CANADA (3.3%) Bombardier, Inc. (Class B) (Manufacturing - Diversified Inds.).................................................. 25,000 513,735 Canadian National Railway Co. (Transportation)........................................ 8,500 399,839 *Cognicase, Inc. (Business Services).................................................. 30,500 369,813 Magna International, Inc. (Class A) (Motor Vehicles & Parts)............................................................. 12,000 751,520 *Newbridge Networks Corp. (Electronics)............................................... 15,000 524,743 Northern Telecom Ltd. (Electronics)................................................... 11,000 977,598 Royal Bank of Canada (Banking)........................................................ 17,000 898,302 Thomson Corp. (Media)................................................................. 16,000 438,946 -------------- 4,874,496 -------------- CHILE (0.6%) *Distribucion y Servicio D&S SA, ADR (Retail)......................................... 50,000 928,125 -------------- FINLAND (2.6%) Finnlines Oyj (Transportation)........................................................ 34,000 1,354,880 Merita plc. (Class A) (Banking)....................................................... 280,000 1,532,274 Metsa Serla Oyj (Series B) (Paper & Forest Products).................................. 114,000 889,725 -------------- 3,776,879 -------------- FRANCE (7.9%) Alcatel Alsthom SA (Electronics)...................................................... 10,000 1,271,715 BIC SA (Consumer Products)............................................................ 10,000 730,280 Carrefour SA (Retail)................................................................. 1,200 626,382 Cie de Saint Gobain SA (Building Materials)........................................... 6,084 864,736 Cie Francaise d'Etudes et de Construction Technip (Construction)...................... 3,700 390,574 Cipe France SA (Business Services).................................................... 5,400 182,588 Elf-Aquitaine SA (Oil Exploration & Production)....................................... 11,000 1,280,027 SHARES OR PRINCIPAL AMOUNT VALUE(1) ------------- -------------- *France Telecom SA, ADR (Utilities - Communication)................................... 39,000 $ 1,404,000 Lafarge SA (Building Materials)....................................................... 7,200 472,659 L'Oreal SA (Consumer Products)........................................................ 2,500 978,722 *Renault SA (Motor Vehicles & Parts).................................................. 60,000 1,688,638 Schneider SA (Electrical Equipment)................................................... 13,000 706,242 Sodexho Alliance SA (Food & Beverages)................................................ 1,000 535,783 Synthelabo SA (Pharmaceuticals)....................................................... 3,600 450,037 -------------- 11,582,383 -------------- GERMANY (4.9%) Allianz AG (Insurance)................................................................ 3,000 777,401 Deutsche Bank AG (Banking)............................................................ 12,500 882,778 Gehe AG (Wholesale Distributor)....................................................... 20,000 1,000,945 Heidelberger Zement AG (Building Materials)........................................... 3,850 274,037 Mannesmann AG (Machinery & Capital Spending).......................................... 3,400 1,718,623 Siemens AG (Electrical Equipment)..................................................... 7,500 444,169 Thyssen AG (Steel).................................................................... 6,000 1,284,547 Volkswagen AG (Motor Vehicles & Parts)................................................ 1,500 844,131 -------------- 7,226,631 -------------- HUNGARY (0.4%) *Gedeon Richter Ltd., GDS (Pharmaceuticals)........................................... 5,400 627,750 -------------- INDIA (3.1%) Bajaj Auto Ltd., GDR (Motor Vehicles & Parts)......................................... 30,000 607,500 Bank of Baroda Ltd. (Banking)......................................................... 271,000 783,197 Indian Hotels Co., Ltd., The, GDR (Entertainment & Leisure)........................... 37,000 696,063 Industrial Credit & Investment Corp. of India Ltd., The, GDR (Financial Services)..... 30,000 387,750 Infosys Technologies Ltd. (Business Services)......................................... 16,000 506,803 Mahindra & Mahindra Ltd. (Motor Vehicles & Parts)..................................... 70,000 581,841 Tata Engineering & Locomotive Co., Ltd., GDS (Motor Vehicles & Parts)................. 50,000 416,750 Videsh Sanchar Nigam Ltd., GDR (Utilities - Communication)............................ 40,000 557,000 -------------- 4,536,904 -------------- INDONESIA (0.5%) *Gulf Indonesia Resources Ltd. (Oil Exploration & Production)......................... 36,000 792,000 -------------- ITALY (2.1%) Credito Italiano S.p.A (Banking)...................................................... 338,500 1,047,606 ENI S.p.A (Oil Exploration & Production).............................................. 132,000 754,179
31 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ------------------ ------------------ -- COLUMBIA INTERNATIONAL STOCK FUND, INC. -- ---------------------------------------------
SHARES OR PRINCIPAL AMOUNT VALUE(1) ------------- --------------
COMMON STOCKS (CONTINUED) Fiat S.p.A (Motor Vehicles & Parts)................................................... 266,000 $ 771,928 Gewiss S.p.A (Electrical Equipment)................................................... 24,800 469,883 -------------- 3,043,596 -------------- JAPAN (22.2%) Banyu Pharmaceutical Co., Ltd. (Pharmaceuticals)...................................... 22,000 243,599 Bellsystem 24, Inc. (Business Services)............................................... 6,000 788,927 BRIDGESTONE CORP. (Motor Vehicles & Parts)............................................ 32,000 696,348 DENSO CORP. (Motor Vehicles & Parts).................................................. 23,000 415,609 East Japan Railway Co. (Transportation)............................................... 148 670,296 Fuji Heavy Inds., Ltd. (Machinery & Capital Spending)................................. 91,000 246,305 Fuji Photo Film Co., Ltd. (Entertainment & Leisure)................................... 50,000 1,922,338 FUJITSU LTD. (Electronics)............................................................ 47,000 505,959 Hitachi Maxell Ltd. (Electronics)..................................................... 36,000 636,678 Ishikawajima-Harima Heavy Industries Co., Ltd. (Machinery & Capital Spending)......... 310,000 464,821 ITO-YOKADO CO., LTD. (Retail)......................................................... 31,000 1,585,160 KEYENCE CORP. (Electronics)........................................................... 6,600 979,469 KOMATSU LTD. (Machinery & Capital Spending)........................................... 143,000 720,223 MABUCHI MOTOR CO., LTD. (Electrical Equipment)........................................ 16,000 815,686 Mitsubishi Estate Co., Ltd. (Real Estate)............................................. 70,000 764,321 Mitsubishi Trust & Banking Corp., The (Banking)....................................... 55,000 554,018 MITSUI & CO., LTD. (Wholesale Distributor)............................................ 90,000 534,256 Mitsui Fudosan Co., Ltd. (Real Estate)................................................ 72,000 697,578 MYCAL CORP. (Retail).................................................................. 95,000 796,232 Nintendo Co., Ltd. (Entertainment & Leisure).......................................... 18,000 1,785,467 NIPPON STEEL CORP. (Metals, Mining & Steel)........................................... 300,000 445,213 NIPPON TELEGRAPH & TELEPHONE CORP. (Utilities - Communication)........................ 1,000 861,207 Nomura Securities Co., Ltd., The (Financial Services)................................. 76,000 1,016,840 NTT Data Communications Systems Corp. (Business Services)............................. 35 1,891,965 ROHM CO., LTD. (Electronics).......................................................... 17,000 1,738,562 SANKYO CO., LTD. (Pharmaceuticals).................................................... 36,000 816,609 Sekisui House, Ltd. (Construction).................................................... 112,000 722,553
SHARES OR PRINCIPAL AMOUNT VALUE(1) ------------- -------------- Shiseido Co., Ltd. (Consumer Products)................................................ 110,000 $ 1,505,575 SONY CORP. (Electronics).............................................................. 28,000 2,497,501 Sumitomo Bank Ltd., The (Banking)..................................................... 58,000 664,514 Takeda Chemical Inds., Ltd. (Pharmaceuticals)......................................... 41,000 1,172,780 Tokio Marine & Fire Insurance Co., Ltd., The (Insurance).............................. 130,000 1,479,431 TOYOTA MOTOR CORP. (Motor Vehicles & Parts)............................................................................. 50,000 1,437,909 TRANS COSMOS, INC. (Business Services)................................................ 18,000 316,955 -------------- 32,390,904 -------------- MEXICO (3.8%) Fomento Economico Mexicano SA de CV (Series B) (Food & Beverages)..................... 100,000 800,546 *Industrias CH SA (Series B) (Steel).................................................. 280,000 1,682,016 Panamerican Beverages, Inc. (Class A) (Food & Beverages).............................. 26,000 848,250 *Tubos de Acero de Mexico SA, ADR (Steel)............................................. 102,000 2,205,750 -------------- 5,536,562 -------------- NETHERLANDS (4.2%) ABN Amro Holding NV (Banking)......................................................... 32,524 633,480 Aegon NV (Insurance).................................................................. 25,992 2,313,391 Akzo Nobel NV (Chemicals)............................................................. 4,800 827,456 Koninklijke Pakhoed NV (Certificates) (Oil Equipment & Services)........................................................... 16,484 475,500 Philips Electronics NV (Electronics).................................................. 20,000 1,199,211 Vendex International NV (Certificates) (Retail)....................................... 13,178 727,129 -------------- 6,176,167 -------------- NORWAY (1.5%) *Fred Olsen Energy ASA (Oil Exploration & Production)................................. 20,000 415,902 Smedvig ASA (Class A) (Oil Equipment & Services)...................................... 32,000 674,142 Tomra Systems ASA (Machinery & Capital Spending)...................................... 49,000 1,098,879 -------------- 2,188,923 -------------- SPAIN (3.6%) Banco Bilbao Vizcaya SA (Banking)..................................................... 48,000 1,552,960 Dragados & Construcciones SA (Construction)........................................... 39,000 830,522 Inmobiliaria Metropolitana Vasco Central SA (Real Estate)............................. 17,500 788,982 *Tele Pizza SA (Restaurants).......................................................... 6,500 524,675
32 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ------------------ ------------------ -- COLUMBIA INTERNATIONAL STOCK FUND, INC. -- ---------------------------------------------
SHARES OR PRINCIPAL AMOUNT VALUE(1) ------------- --------------
COMMON STOCKS (CONTINUED) Telefonica de Espana SA, ADR (Utilities - Communication).............................. 10,000 $ 910,625 Vallehermoso SA (Real Estate)......................................................... 20,000 612,941 -------------- 5,220,705 -------------- SWEDEN (3.9%) *Argonaut AB (Class B) (Transportation)............................................... 515,000 882,894 Assa Abloy AB (Class B) (Manufacturing - Diversified Inds.)........................... 33,000 873,566 ICB Shipping AB (Class B) (Transportation)............................................ 140,000 1,764,780 *Munters AB (Manufacturer - Consumer Products)........................................ 110,000 949,830 SSAB Svenskt Stal AB (Class B) (Metals, Mining & Steel)............................... 25,000 412,833 Telefonaktiebolaget LM Ericsson, ADR (Electronics).................................... 20,000 746,250 -------------- 5,630,153 -------------- SWITZERLAND (3.0%) Credit Suisse Group (Registered) (Financial Services)................................. 6,500 1,006,509 Novartis AG (Bearer) (Pharmaceuticals)................................................ 2,100 3,417,266 -------------- 4,423,775 -------------- UNITED KINGDOM (16.4%) Associated British Foods plc (Food & Beverages)....................................... 62,000 540,646 Bank of Scotland (Banking)............................................................ 86,000 792,376 Barclays plc (Banking)................................................................ 50,639 1,348,058 British Aerospace plc (Aircraft & Aerospace).......................................... 38,000 1,084,746 British Petroleum Co. plc (Oil Exploration & Production).............................. 56,561 744,478 British Sky Broadcasting Group plc (Media)............................................ 105,000 787,770 British Telecommunications plc (Utilities - Communication)............................ 110,000 866,004 Compass Group plc (Restaurants)....................................................... 160,000 1,971,728 Electrocomponents plc (Electronics)................................................... 86,469 643,049 Glaxo Wellcome plc (Pharmaceuticals).................................................. 86,000 2,037,540 Granada Group plc (Entertainment & Leisure)........................................... 60,975 932,996 Hays plc (Business Services).......................................................... 120,000 1,603,180 National Westminster Bank plc (Banking)............................................... 93,000 1,548,491 Next plc (Retail)..................................................................... 80,000 910,838 Railtrack Group plc (Transportation).................................................. 100,000 1,591,005 Reuters Holdings plc (Media).......................................................... 69,000 754,946 Siebe plc (Machinery & Capital Spending).............................................. 72,295 1,421,416
SHARES OR PRINCIPAL AMOUNT VALUE(1) ------------- -------------- *Smallworldwide plc, ADR (Business Services).......................................... 19,000 $ 415,625 SmithKline Beecham plc (Pharmaceuticals).............................................. 200,682 2,057,034 Smiths Industries plc (Manufacturing - Diversified Inds.)............................. 28,000 390,660 Wetherspoon, J.D. plc (Restaurants)................................................... 140,000 771,646 WPP Group plc (Media)................................................................. 160,000 709,453 -------------- 23,923,685 -------------- Total Common Stocks (Cost $111,122,019).................................................................. 126,093,555 -------------- PREFERRED STOCKS (2.2%) BRAZIL (1.4%) Bardella Industrias Mecanicas SA (Manufacturing - Diversified Inds.).................. 4,000 430,108 Cia Cervejaria Brahma SA (Food & Beverages)........................................... 1,195,000 803,091 Cia Paranaense de Energi SA (Class B) (Utilities - Electric).......................... 48,000,000 653,763 DIXIE TOGA SA (Containers)............................................................ 437,500 223,454 *Empresa Nacional de Comercio Redito e Participacoes SA (Textiles).................... 1,195,000 857 -------------- 2,111,273 GERMANY (0.8%) Porsche AG (Motor Vehicles & Parts)................................................... 700 1,167,770 -------------- Total Preferred Stocks (Cost $2,718,459) ................................................................... 3,279,043 -------------- WARRANTS (0.1%) FRANCE (0.1%) *Cie Generale des Eaux (05/02/2001) (Utilities)....................................... 220,000 149,580 JAPAN (0.0%) *Mr. Max Corp. (02/17/1998) (Retail).................................................. 5,000 0 -------------- Total Warrants (Cost $692,496) ..................................................................... 149,580 -------------- CONVERTIBLE NOTE (0.5%) GERMANY (0.5%) Daimler-Benz AG, GDR (Motor Vehicles & Parts) 5.750% 06/14/2002 (Cost $819,929)...................................................................... 9,838 737,850 -------------- Total investments, excluding temporary cash investments (Cost $115,352,903) ................................................................. 130,260,028 --------------
33 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ------------------ ------------------ -- COLUMBIA INTERNATIONAL STOCK FUND, INC. -- ---------------------------------------------
SHARES OR PRINCIPAL AMOUNT VALUE(1) ------------- -------------- REPURCHASE AGREEMENTS (11.7%) Goldman Sachs Corp. 6.337% dated 12/31/1997, due 01/02/1998 in the amount of $7,418,693. Collateralized by U.S. Treasury Notes 5.875% due 08/31/1999................................................................ $ 7,416,118 $ 7,416,118 J.P. Morgan Securities, Inc. 6.521% dated 12/31/1997, due 01/02/1998 in the amount of $7,352,626. Collateralized by U.S. Treasury Notes 3.625% to 7.500% due 08/31/2000 to 02/15/2005......................................................... 7,350,000 7,350,000 Merrill Lynch 6.388% dated 12/31/1997, due 01/02/1998 in the amount of $2,300,805. Collateralized by U.S. Treasury Bonds 6.250% to 7.625% due 02/15/2023 to 08/15/2025......................................................... 2,300,000 2,300,000 -------------- Total Repurchase Agreements (Cost $17,066,118) .................................................................. 17,066,118 -------------- TOTAL INVESTMENTS (100.7%) (Cost $132,419,021)...................................................................... 147,326,146 CASH AND RECEIVABLES LESS LIABILITIES (-0.7%)............................................. (1,045,611) -------------- NET ASSETS (100%)......................................................................... $ 146,280,535 -------------- --------------
(1) See Note 1 of Notes to Financial Statements. * Non-income producing. The accompanying notes are an integral part of the financial statements. 34 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - -------------------------- -------------------------- -- COLUMBIA SPECIAL FUND, INC. -- ------------------------------------
SHARES OR PRINCIPAL December 31, 1997 AMOUNT VALUE(1) ------------- -------------- COMMON STOCKS (97.5%) BUILDING & FORESTRY PRODUCTS (2.1%) Longview Fibre Co. ................................................................... 815,000 $ 12,377,812 Willamette Industries, Inc. .......................................................... 420,500 13,534,844 -------------- 25,912,656 -------------- BUSINESS & CONSUMER SERVICES (15.7%) *AccuStaff, Inc. ..................................................................... 400,000 9,200,000 *Corrections Corporation of America................................................... 450,000 16,678,125 DENTSPLY International, Inc. ......................................................... 550,000 16,775,000 *Dollar Thrifty Automotive Group, Inc. ............................................... 500,000 10,250,000 *FIserv, Inc. ........................................................................ 555,000 27,264,375 Hertz Corp. (Class A)................................................................. 484,000 19,481,000 McKesson Corp. ....................................................................... 174,100 18,835,444 *NovaCare Employee Services, Inc. .................................................... 450,000 3,600,000 *Romac International, Inc. ........................................................... 465,000 11,363,437 Service Corporation Int'l. ........................................................... 800,000 29,550,000 ServiceMaster Co. .................................................................... 450,000 13,162,500 *StaffMark, Inc. ..................................................................... 337,500 10,673,438 Unitog Co. ........................................................................... 415,000 9,233,750 -------------- 196,067,069 -------------- CHEMICAL (0.8%) IMC Global, Inc. ..................................................................... 300,000 9,825,000 -------------- CONSUMER DURABLE (1.4%) *Furniture Brands International, Inc. ................................................ 850,000 17,425,000 -------------- CONSUMER NON-DURABLE (25.0%) +*Abercrombie & Fitch Co. (Class A)................................................... 800,000 25,000,000 *AnnTaylor Stores Corp. .............................................................. 1,240,000 16,585,000 *Consolidated Stores Corp. ........................................................... 450,000 19,771,875 +*Gadzooks, Inc. ..................................................................... 700,000 14,700,000 *Helen of Troy Ltd. .................................................................. 1,010,000 16,286,250 *Landry's Seafood Restaurants, Inc. .................................................. 1,000,000 24,000,000 Liz Claiborne, Inc. .................................................................. 450,000 18,815,625 *Meyer (Fred), Inc. .................................................................. 1,000,000 36,375,000 Nordstrom, Inc. ...................................................................... 525,000 31,696,875 *Papa John's International, Inc. ..................................................... 600,000 20,925,000 *Planet Hollywood International, Inc. (Class A)....................................... 1,375,000 18,218,750 *Polo Ralph Lauren Corp. (Class A).................................................... 600,000 14,587,500 St. John Knits, Inc. ................................................................. 600,000 24,000,000 +*Vans, Inc. ......................................................................... 860,000 13,007,500 *Zale Corp. .......................................................................... 790,000 18,170,000 -------------- 312,139,375 -------------- CONSUMER STAPLES (16.3%) American Stores Co. .................................................................. 2,015,000 41,433,437 SHARES OR PRINCIPAL AMOUNT VALUE(1) ------------- -------------- Hannaford Brothers Co. ............................................................... 200,000 $ 8,687,500 *Kroger Co. .......................................................................... 1,000,000 36,937,500 Libbey, Inc. ......................................................................... 350,000 13,256,250 Newell Co. ........................................................................... 400,000 17,000,000 *Quality Food Centers, Inc. .......................................................... 400,000 26,800,000 *Safeway, Inc. ....................................................................... 600,000 37,950,000 Sunbeam Corp. ........................................................................ 400,000 16,850,000 *Whole Foods Market, Inc. ............................................................ 100,000 5,112,500 -------------- 204,027,187 -------------- HEALTH (14.0%) *American Oncology Resources, Inc. ................................................... 600,000 9,600,000 *ATL Ultrasound, Inc. ................................................................ 100,000 4,600,000 *Dura Pharmaceuticals, Inc. .......................................................... 213,000 9,771,375 *Elan Corp. plc ADR................................................................... 150,000 7,678,125 *ESC Medical Systems Ltd. ............................................................ 706,500 27,376,875 *Inhale Therapeutic Systems........................................................... 100,000 2,600,000 *MedPartners, Inc. ................................................................... 50,000 1,118,750 Mentor Corp. ......................................................................... 600,000 21,900,000 Omnicare, Inc. ....................................................................... 300,000 9,300,000 *PAREXEL International Corp. ......................................................... 230,000 8,510,000 *PhyCor, Inc. ........................................................................ 300,000 8,100,000 +*ResMed, Inc. ....................................................................... 500,000 14,062,500 *Serologicals Corp. .................................................................. 500,000 13,000,000 *Sofamor Danek Group, Inc. ........................................................... 200,000 13,012,500 *Transkaryotic Therapies, Inc. ....................................................... 155,000 5,444,375 *Watson Pharmaceuticals, Inc. ........................................................ 600,000 19,462,500 -------------- 175,537,000 -------------- MACHINERY & CAPITAL SPENDING (1.9%) Applied Power, Inc. (Class A)......................................................... 134,500 9,280,500 General Cable Corp. .................................................................. 100,000 3,618,750 Parker-Hannifin Corp. ................................................................ 250,000 11,468,750 -------------- 24,368,000 -------------- METAL MINING & STEEL (2.8%) *Getchell Gold Corp. ................................................................. 800,000 19,200,000 +Schnitzer Steel Industries, Inc. (Class A)........................................... 550,000 15,434,375 -------------- 34,634,375 -------------- POLLUTION CONTROL (3.9%) *Air & Water Technologies Corp. (Class A)............................................. 1,200,100 1,350,112 *Culligan Water Technologies, Inc. ................................................... 400,000 20,100,000 *Ionics, Inc. ........................................................................ 343,000 13,419,875 +*Osmonics, Inc. ..................................................................... 869,000 13,741,063 -------------- 48,611,050 --------------
35 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - -------------------------- -------------------------- -- COLUMBIA SPECIAL FUND, INC. -- ------------------------------------
SHARES OR PRINCIPAL AMOUNT VALUE(1) ------------- --------------
COMMON STOCKS (CONTINUED) REAL ESTATE SECURITIES (6.5%) Apartment Investment & Management Co. (Class A)....................................... 114,000 $ 4,189,500 Colonial Properties Trust............................................................. 135,000 4,066,875 Equity Office Properties Trust........................................................ 123,000 3,882,187 Equity Residential Properties Trust................................................... 80,000 4,045,000 First Industrial Realty Trust, Inc. .................................................. 115,000 4,154,375 General Growth Properties, Inc. ...................................................... 111,000 4,009,875 Liberty Property Trust................................................................ 153,000 4,370,063 Macerich Co. ......................................................................... 150,000 4,275,000 Mack-Cali Realty Corp. ............................................................... 101,000 4,141,000 Manufactured Home Communities, Inc. .................................................. 150,000 4,050,000 Public Storage, Inc. ................................................................. 145,000 4,259,375 *Security Capital Group, Inc. (Class B)............................................... 350,000 11,375,000 Security Capital Industrial Trust..................................................... 163,000 4,054,625 Security Capital Pacific Trust........................................................ 160,000 3,880,000 Simon DeBartolo Group, Inc. .......................................................... 122,000 3,987,875 Spieker Properties, Inc. ............................................................. 100,000 4,287,500 *Trammell Crow Co. ................................................................... 24,000 618,000 TriNet Corporate Realty Trust, Inc. .................................................. 105,000 4,062,188 Vornado Realty Trust.................................................................. 90,000 4,224,375 -------------- 81,932,813 -------------- TECHNOLOGY (4.6%) *Apple Computer, Inc. ................................................................ 1,000,000 13,125,000 *FlexiInternational Software, Inc. ................................................... 25,000 387,500 *FORE Systems, Inc. .................................................................. 600,000 9,150,000 +*Integrated Measurement Systems, Inc. ............................................... 300,000 5,137,500 *Loral Space & Communications Corp. .................................................. 650,000 13,934,375 *VIASOFT, Inc. ....................................................................... 360,000 15,210,000 -------------- 56,944,375 -------------- TRANSPORTATION (1.6%) +*Celadon Group, Inc. ................................................................ 500,000 6,750,000 *Trans World Airlines, Inc. .......................................................... 1,300,000 13,162,500 -------------- 19,912,500 --------------
SHARES OR PRINCIPAL AMOUNT VALUE(1) ------------- -------------- UTILITIES/ELECTRIC/GAS (0.9%) United Water Resources, Inc. ......................................................... 575,000 $ 11,248,438 -------------- Total Common Stocks (Cost $1,080,385,133) ............................................................... 1,218,584,838 -------------- REPURCHASE AGREEMENTS (7.4%) Goldman Sachs Corp. 6.337% dated 12/31/1997, due 01/02/1998 in the amount of $65,646,574. Collateralized by U.S. Treasury Notes 5.875% due 08/31/1999................................................................ $ 65,623,788 65,623,788 J.P. Morgan Securities, Inc. 6.521% dated 12/31/1997, due 01/02/1998 in the amount of $27,009,648. Collateralized by U.S. Treasury Notes 3.625% to 7.500% due 08/31/2000 to 02/15/2005......................................................... 27,000,000 27,000,000 -------------- Total Repurchase Agreements (Cost $92,623,788) .................................................................. 92,623,788 -------------- TOTAL INVESTMENTS (104.9%) (Cost $1,173,008,921).................................................................... 1,311,208,626 RECEIVABLES LESS LIABILITIES (-4.9%)...................................................... (61,490,829) -------------- NET ASSETS (100.0%)....................................................................... $1,249,717,797 -------------- --------------
(1) See Note 1 of Notes to Financial Statements. * Non-income producing. + Affiliated issuers (Note 1) The accompanying notes are an integral part of the financial statements. 36 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ------------------------ ------------------------ -- COLUMBIA SMALL CAP FUND, INC. -- -----------------------------------
SHARES OR PRINCIPAL December 31, 1997 AMOUNT VALUE(1) ------------- -------------- COMMON STOCKS (96.7%) AEROSPACE (1.7%) *Orbital Sciences Corp. .............................................................. 55,000 $ 1,636,250 -------------- FINANCE (6.1%) *Golden State Bancorp, Inc. .......................................................... 17,000 635,375 *Insignia Financial Group, Inc. (Class A)............................................. 50,000 1,150,000 North Fork Bancorp, Inc. ............................................................. 58,600 1,966,763 *Stirling Cooke Brown Holdings Ltd. .................................................. 20,400 499,800 TCF Financial Corp. .................................................................. 37,100 1,259,081 *Wilshire Financial Services Group, Inc. ............................................. 15,000 397,500 -------------- 5,908,519 -------------- BUILDING & FORESTRY PRODUCTS (1.1%) Martin Marietta Materials, Inc. ...................................................... 30,000 1,096,875 -------------- BUSINESS & CONSUMER SERVICES (8.0%) *AccuStaff, Inc. ..................................................................... 36,000 828,000 *Billing Information Concepts Corp. .................................................. 17,000 816,000 *Family Golf Centers, Inc. ........................................................... 45,000 1,411,875 G & K Services, Inc. (Class A)........................................................ 27,800 1,167,600 *Hagler Bailly, Inc. ................................................................. 20,000 450,000 *Hall, Kinion & Associates, Inc. ..................................................... 40,000 875,000 *Lamalie Associates, Inc. ............................................................ 3,000 60,000 *Seattle FilmWorks, Inc. ............................................................. 92,000 1,023,500 Select Appointments Holdings plc ADR.................................................. 38,000 693,500 *Walsh International, Inc. ........................................................... 40,300 423,150 -------------- 7,748,625 -------------- CONSUMER DURABLE (4.0%) Clayton Homes, Inc. .................................................................. 54,900 988,200 *Coastcast Corp. ..................................................................... 90,000 1,248,750 Exide Corp. .......................................................................... 14,300 370,012 *Tower Automotive, Inc. .............................................................. 30,000 1,261,875 -------------- 3,868,837 -------------- CONSUMER NON-DURABLE (10.2%) *ACX Technologies, Inc. .............................................................. 24,000 586,500 *Bed, Bath & Beyond, Inc. ............................................................ 26,700 1,027,950 *Bon-Ton Stores, Inc. ................................................................ 63,500 952,500 *Borders Group, Inc. ................................................................. 24,500 767,156 CKE Restaurants, Inc. ................................................................ 51,800 2,182,075 *Cost Plus, Inc. ..................................................................... 51,000 1,479,000 *Day Runner, Inc. .................................................................... 20,000 810,000 *Star Buffet, Inc. ................................................................... 19,000 218,500 *Williams-Sonoma, Inc. ............................................................... 44,200 1,850,875 -------------- 9,874,556 -------------- SHARES OR PRINCIPAL AMOUNT VALUE(1) ------------- -------------- CONSUMER STAPLES (0.3%) *Beringer Wine Estates Holdings, Inc. (Class B)....................................... 8,500 $ 323,000 -------------- ENERGY (2.9%) *Meridian Resource Corp. ............................................................. 75,000 717,187 *Ocean Energy, Inc. .................................................................. 16,000 789,000 *Patterson Energy, Inc. .............................................................. 5,600 216,650 *Seagull Energy Corp. ................................................................ 53,000 1,093,125 -------------- 2,815,962 -------------- ENERGY SERVICES (3.2%) *Hanover Compressor Co. .............................................................. 7,000 143,062 *Tubos de Acero de Mexico SA ADR...................................................... 90,000 1,946,250 *Willbros Group, Inc. ................................................................ 65,000 975,000 -------------- 3,064,312 -------------- ENTERTAINMENT & MEDIA (3.8%) *Golden Books Family Entertainment, Inc. ............................................. 17,600 181,500 Nelson (Thomas), Inc. ................................................................ 51,000 589,687 *Regal Cinemas, Inc. ................................................................. 50,000 1,393,750 *WMS Industries, Inc. ................................................................ 68,400 1,444,950 -------------- 3,609,887 -------------- HEALTH (27.6%) *Alternative Living Services, Inc. ................................................... 44,300 1,309,619 *American Oncology Resources, Inc. ................................................... 55,500 888,000 *Assisted Living Concepts, Inc. ...................................................... 57,000 1,125,750 *ATL Ultrasound, Inc. ................................................................ 38,000 1,748,000 *Atria Communities, Inc. ............................................................. 63,000 1,078,875 *Cardiac Pathways Corp. .............................................................. 65,000 455,000 *Concentra Managed Care, Inc. ........................................................ 13,000 438,750 *ESC Medical Systems Ltd. ............................................................ 25,000 968,750 *HealthCare COMPARE Corp. ............................................................ 19,300 986,712 *FPA Medical Management, Inc. ........................................................ 54,600 1,016,925 *Health Management Systems, Inc. ..................................................... 50,000 296,875 *IDEXX Laboratories, Inc. ............................................................ 20,000 318,750 *Immunex Corp. ....................................................................... 15,000 810,000 Jones Medical Industries, Inc. ....................................................... 37,500 1,434,375 *Laser Industries Ltd. ............................................................... 75,000 2,053,125 *Ligand Pharmaceuticals, Inc. (Class B)............................................... 73,897 951,424 *MedPartners, Inc. ................................................................... 51,000 1,141,125 *MedQuist, Inc. ...................................................................... 23,450 814,887 *Protein Design Labs, Inc. ........................................................... 20,000 800,000 *Quorum Health Group, Inc. ........................................................... 50,000 1,306,250 *Somnus Medical Technologies, Inc. ................................................... 100,000 1,275,000 *Spiros Development Corp. II (Units-1 callable Common Share of Spiros & 1 Warrant of Durable Pharmaceuticals)............................................................. 30,000 513,750
37 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ------------------------ ------------------------ -- COLUMBIA SMALL CAP FUND, INC. -- -----------------------------------
SHARES OR PRINCIPAL AMOUNT VALUE(1) ------------- --------------
COMMON STOCKS (CONTINUED) *Thermo Cardiosystems, Inc. .......................................................... 50,000 $ 1,337,500 *Transkaryotic Therapies, Inc. ....................................................... 35,100 1,232,888 *Universal Health Services, Inc. (Class B)............................................ 30,000 1,511,250 *Watson Pharmaceuticals, Inc. ........................................................ 25,400 823,913 -------------- 26,637,493 -------------- MACHINERY & CAPITAL SPENDING (1.3%) Robbins & Myers, Inc. ................................................................ 32,000 1,268,000 -------------- METAL MINING & STEEL (0.1%) Oregon Steel Mills, Inc. ............................................................. 3,000 63,938 -------------- POLLUTION CONTROL (1.4%) *Allied Waste Industries, Inc. ....................................................... 55,500 1,293,844 -------------- TECHNOLOGY (24.3%) *ADC Telecommunications, Inc. ........................................................ 13,000 542,750 *Aspect Telecommunications Corp. ..................................................... 52,000 1,085,500 *Avant! Corp. ........................................................................ 21,000 351,750 *AXENT Technologies, Inc. ............................................................ 76,800 1,324,800 *CHS Electronics, Inc. ............................................................... 30,000 513,750 *CIBER, Inc. ......................................................................... 32,000 1,856,000 *Computer Products, Inc. ............................................................. 33,800 764,725 *Davox Corp. ......................................................................... 26,900 877,613 *Eltron International, Inc. .......................................................... 41,400 1,252,350 *Engineering Animation, Inc. ......................................................... 35,100 1,614,600 *HNC Software, Inc. .................................................................. 32,000 1,376,000 *Hyperion Software Corp. ............................................................. 5,300 189,475 *Infinium Software, Inc. ............................................................. 50,000 812,500 *Intelligent Polymers, Ltd. (Units-1 Common share & 1 Warrant)........................ 22,000 486,750 *JDA Software Group, Inc. ............................................................ 3,000 105,000 *Metro Information Services, Inc. .................................................... 43,000 1,193,250 *MICROS Systems, Inc. ................................................................ 30,600 1,377,000 *Molecular Dynamics, Inc. ............................................................ 29,000 471,250 *New Era of Networks, Inc. ........................................................... 39,000 438,750 *P-COM, Inc. ......................................................................... 57,000 983,250 *Peerless Systems Corp. .............................................................. 74,000 952,750 *Platinum Software Corp. ............................................................. 80,000 940,000 *RadiSys Corp. ....................................................................... 22,000 819,500
SHARES OR PRINCIPAL AMOUNT VALUE(1) ------------- -------------- *Security Dynamics Technologies, Inc. ................................................ 26,000 $ 929,500 *Transition Systems, Inc. ............................................................ 60,000 1,327,500 *World Access, Inc. .................................................................. 36,400 869,050 -------------- 23,455,363 -------------- TRANSPORTATION (0.1%) *Ryanair Holdings plc ADR............................................................. 3,000 75,375 -------------- UTILITIES/COMMUNICATIONS (0.6%) *Anicom, Inc. ........................................................................ 33,400 530,225 -------------- Total Common Stocks (Cost $83,909,185) .................................................................. 93,271,061 -------------- WARRANT (0.1%) HEALTH (0.1%) *Ligand Pharmaceuticals, Inc. (06/03/2000) (Cost $44,517)....................................................................... 8,000 67,000 -------------- Total investments, excluding temporary cash investment (Cost $83,953,702)........................................................ 93,338,061 -------------- REPURCHASE AGREEMENT (3.7%) Goldman Sachs Corp. 6.337% dated 12/31/1997, due 01/02/1998 in the amount of $3,623,531. Collateralized by U.S. Treasury Notes 5.875% due 08/31/1999 (Cost $3,622,273) ................................................................... $ 3,622,273 3,622,273 -------------- TOTAL INVESTMENTS (100.5%) (Cost $87,575,975)....................................................................... 96,960,334 RECEIVABLES LESS LIABILITIES (-0.5%)...................................................... (529,025) -------------- NET ASSETS (100.0%)....................................................................... $ 96,431,309 -------------- --------------
(1) See Note 1 of Notes to Financial Statements. * Non-income producing. The accompanying notes are an integral part of the financial statements. 38 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ------------------- ------------------- -- COLUMBIA REAL ESTATE EQUITY FUND, INC. -- --------------------------------------------
SHARES OR PRINCIPAL December 31, 1997 AMOUNT VALUE(1) ------------- -------------- COMMON STOCKS (92.4%) REAL ESTATE APARTMENTS (16.2%) Apartment Investment & Management Co. (Class A)....................................... 152,200 $ 5,593,350 Associated Estates Realty Corp. ...................................................... 148,800 3,524,700 Colonial Properties Trust............................................................. 156,100 4,702,512 Equity Residential Properties Trust................................................... 91,003 4,601,339 Security Capital Pacific Trust........................................................ 256,171 6,212,147 -------------- 24,634,048 -------------- OFFICE (17.2%) Boston Properties, Inc. .............................................................. 137,000 4,529,563 Equity Office Properties Trust........................................................ 308,418 9,734,443 Mack-Cali Realty Corp. ............................................................... 189,400 7,765,400 Reckson Associates Realty Corp. ...................................................... 156,800 3,978,800 -------------- 26,008,206 -------------- INDUSTRIAL (25.6%) Alexandria Real Estate Equities, Inc. ................................................ 149,500 4,718,594 First Industrial Realty Trust, Inc. .................................................. 155,500 5,617,437 Liberty Property Trust................................................................ 186,700 5,332,619 Public Storage, Inc. ................................................................. 130,700 3,839,312 Security Capital Industrial Trust..................................................... 194,145 4,829,357 Shurgard Storage Centers, Inc. (Class A).............................................. 123,900 3,593,100 Spieker Properties, Inc. ............................................................. 103,500 4,437,562 Storage Trust Realty.................................................................. 51,200 1,347,200 TriNet Corporate Realty Trust, Inc. .................................................. 131,000 5,068,063 -------------- 38,783,244 -------------- MANUFACTURED HOMES (3.0%) Manufactured Home Communities, Inc. .................................................. 170,400 4,600,800 -------------- COMMUNITY CENTERS (11.9%) Excel Realty Trust, Inc. ............................................................. 142,100 4,476,150 JP Realty, Inc. ...................................................................... 158,000 4,098,125 Pan Pacific Retail Properties, Inc. .................................................. 152,200 3,253,275 Vornado Realty Trust.................................................................. 131,900 6,191,056 -------------- 18,018,606 -------------- SHOPPING MALLS (7.8%) General Growth Properties, Inc. ...................................................... 143,000 5,165,875 Macerich Co. ......................................................................... 83,300 2,374,050 Simon DeBartolo Group, Inc. .......................................................... 130,856 4,277,356 -------------- 11,817,281 -------------- SHARES OR PRINCIPAL AMOUNT VALUE(1) ------------- -------------- LODGING (2.9%) Patriot American Hospitality, Inc. ................................................... 70,200 $ 2,022,638 Starwood Lodging Trust................................................................ 40,200 2,326,575 -------------- 4,349,213 -------------- OTHER (7.8%) *Catellus Development Corp. .......................................................... 261,900 5,238,000 *Security Capital Group, Inc. (Class B)............................................... 202,900 6,594,250 -------------- 11,832,250 -------------- Total Common Stocks (Cost $112,868,719) ................................................................. 140,043,648 -------------- WARRANT (0.1%) OTHER (0.1%) *Security Capital Group 09/18/1997-09/18/1998 (Cost $176,224)...................................................................... 22,497 118,109 -------------- Total investments, excluding temporary cash investment (Cost $113,044,943) ................................................................. 140,161,757 -------------- REPURCHASE AGREEMENT (7.3%) Goldman Sachs Corp. 6.337% dated 12/31/1997, due 01/02/1998 in the amount of $11,044,700. Collateralized by U.S. Treasury Notes 5.875% due 08/31/1999 (Cost $11,040,866)................................................................... $ 11,040,866 11,040,866 -------------- TOTAL INVESTMENTS (99.8%) (Cost $124,085,809)...................................................................... 151,202,623 RECEIVABLES LESS LIABILITIES (0.2%)....................................................... 351,817 -------------- NET ASSETS (100.0%)....................................................................... $ 151,554,440 -------------- --------------
(1) See Note 1 of Notes to Financial Statements. * Non-income producing. The accompanying notes are an integral part of the financial statements. 39 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ------------------------ ------------------------ -- COLUMBIA BALANCED FUND, INC. -- ----------------------------------
SHARES OR PRINCIPAL December 31, 1997 AMOUNT VALUE(1) ------------- -------------- COMMON STOCKS (52.3%) FINANCE (9.3%) Allstate Corp. ....................................................................... 84,600 $ 7,688,025 American General Corp. ............................................................... 129,100 6,979,469 Banc One Corp. ....................................................................... 100,000 5,431,250 BankAmerica Corp. .................................................................... 99,800 7,285,400 Chase Manhattan Corp. ................................................................ 60,000 6,570,000 First Union Corp. .................................................................... 206,900 10,603,625 Freddie Mac........................................................................... 301,000 12,623,187 Morgan Stanley, Dean Witter, Discover & Co. .......................................... 89,100 5,268,038 NationsBank Corp. .................................................................... 110,900 6,744,106 Travelers Property Casualty Corp. (Class A)........................................... 97,400 4,285,600 -------------- 73,478,700 -------------- BUILDING & FORESTRY PRODUCTS (0.2%) Weyerhaeuser Co. ..................................................................... 39,400 1,933,062 -------------- BUSINESS & CONSUMER SERVICES (1.9%) *Corrections Corporation of America................................................... 124,600 4,617,987 McKesson Corp. ....................................................................... 10,000 1,081,875 Service Corporation Int'l. ........................................................... 256,400 9,470,775 -------------- 15,170,637 -------------- CHEMICAL (0.5%) du Pont (E.I.) de Nemours & Co. ...................................................... 64,000 3,844,000 -------------- CONSUMER NON-DURABLE (5.1%) *Consolidated Stores Corp. ........................................................... 63,100 2,772,456 *Federated Department Stores, Inc. ................................................... 187,300 8,065,606 Home Depot, Inc. ..................................................................... 86,700 5,104,462 Mattel, Inc. ......................................................................... 292,350 10,890,038 *Office Depot, Inc. .................................................................. 108,100 2,587,644 Tandy Corp. .......................................................................... 166,600 6,424,513 Wal-Mart Stores, Inc. ................................................................ 123,900 4,886,306 -------------- 40,731,025 -------------- CONSUMER STAPLES (6.6%) American Stores Co. .................................................................. 168,800 3,470,950 Avon Products, Inc. .................................................................. 50,200 3,081,025 Gillette Co. ......................................................................... 49,000 4,921,437 Nabisco Holdings Corp. (Class A)...................................................... 90,100 4,364,219 PepsiCo, Inc. ........................................................................ 134,200 4,889,913 Philip Morris Cos., Inc. ............................................................. 180,100 8,160,781 Rite Aid Corp. ....................................................................... 90,000 5,281,875 *Safeway, Inc. ....................................................................... 99,400 6,287,050 Sunbeam Corp. ........................................................................ 212,000 8,930,500 SHARES OR PRINCIPAL AMOUNT VALUE(1) ------------- -------------- Sysco Corp. .......................................................................... 67,900 $ 3,093,694 -------------- 52,481,444 -------------- ENERGY (3.2%) Burlington Resources, Inc. ........................................................... 87,535 3,922,662 Exxon Corp. .......................................................................... 98,600 6,033,088 Mobil Corp. .......................................................................... 84,400 6,092,625 Royal Dutch Petroleum Co. ............................................................ 100,700 5,456,681 Texaco, Inc. ......................................................................... 64,400 3,501,750 -------------- 25,006,806 -------------- ENERGY SERVICES (0.4%) Schlumberger Ltd. .................................................................... 34,000 2,737,000 -------------- ENTERTAINMENT & MEDIA (0.5%) Disney (Walt) Co. .................................................................... 38,000 3,764,375 -------------- HEALTH (7.8%) Aetna, Inc. .......................................................................... 55,500 3,916,219 American Home Products Corp. ......................................................... 102,300 7,825,950 Bristol-Myers Squibb Co. ............................................................. 89,200 8,440,550 Lilly (Eli) & Co. .................................................................... 143,800 10,012,075 Merck & Co., Inc. .................................................................... 120,300 12,781,875 Pfizer, Inc. ......................................................................... 80,000 5,965,000 Schering-Plough Corp. ................................................................ 72,800 4,522,700 *Tenet Healthcare Corp. .............................................................. 132,200 4,379,125 Warner-Lambert Co. ................................................................... 31,400 3,893,600 -------------- 61,737,094 -------------- MACHINERY & CAPITAL SPENDING (4.0%) Case Corp. ........................................................................... 40,000 2,417,500 Emerson Electric Co. ................................................................. 105,600 5,959,800 General Electric Co. ................................................................. 176,000 12,914,000 Tyco International Ltd. .............................................................. 227,626 10,257,397 -------------- 31,548,697 -------------- REAL ESTATE SECURITIES (2.7%) American Health Properties, Inc. ..................................................... 73,600 2,028,600 Equity Office Properties Trust........................................................ 63,283 1,997,370 Equity Residential Properties Trust................................................... 48,500 2,452,281 JP Realty, Inc. ...................................................................... 97,500 2,528,906 Manufactured Home Communities, Inc. .................................................. 78,000 2,106,000 Security Capital Pacific Trust........................................................ 91,800 2,226,150 Simon DeBartolo Group, Inc. .......................................................... 52,500 1,716,094 Spieker Properties, Inc. ............................................................. 53,000 2,272,375 Vornado Realty Trust.................................................................. 92,800 4,355,800 -------------- 21,683,576 --------------
40 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ------------------------ ------------------------ -- COLUMBIA BALANCED FUND, INC. -- ----------------------------------
SHARES OR PRINCIPAL AMOUNT VALUE(1) ------------- --------------
COMMON STOCKS (CONTINUED) TECHNOLOGY (6.2%) Autodesk, Inc. ....................................................................... 69,100 $ 2,556,700 *Cadence Design Systems, Inc. ........................................................ 170,600 4,179,700 *Cisco Systems, Inc. ................................................................. 110,650 6,168,737 *Computer Sciences Corp. ............................................................. 75,000 6,262,500 *EMC Corp. ........................................................................... 75,000 2,057,812 Ericsson (L.M.) Telephone Co. (Class B) ADR........................................... 89,200 3,328,275 Hewlett-Packard Co. .................................................................. 76,000 4,750,000 Intel Corp. .......................................................................... 110,800 7,783,700 International Business Machines Corp. ................................................ 76,600 8,009,488 Lucent Technologies, Inc. ............................................................ 52,500 4,193,438 -------------- 49,290,350 -------------- UTILITIES/COMMUNICATIONS (2.2%) AT&T Corp. ........................................................................... 80,200 4,912,250 Bell Atlantic Corp. .................................................................. 48,100 4,377,100 MCI Communications Corp. ............................................................. 47,800 2,046,437 SBC Communications, Inc. ............................................................. 85,000 6,226,250 -------------- 17,562,037 -------------- UTILITIES/ELECTRIC/GAS (1.7%) Cinergy Corp. ........................................................................ 116,800 4,474,900 Houston Industries, Inc. ............................................................. 177,200 4,729,025 Texas Utilities Co. .................................................................. 108,300 4,501,219 -------------- 13,705,144 -------------- Total Common Stocks (Cost $415,436,102) ................................................................. 414,673,947 -------------- U.S. GOVERNMENT, FEDERAL AGENCY OBLIGATIONS (26.6%) U.S. TREASURY BONDS & NOTES (7.3%) U.S. Treasury Bonds 12.000% 05/15/2005................................................................... $ 4,005,000 5,476,837 8.875% 08/15/2017................................................................... 8,970,000 11,903,468 8.125% 08/15/2019................................................................... 2,350,000 2,941,173 U.S. Treasury Notes 6.125% 08/31/1998................................................................... 7,640,000 7,665,067 8.875% 02/15/1999................................................................... 28,675,000 29,651,757 -------------- 57,638,302 -------------- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) (0.2%) 7.500% 08/15/2027 - 10/15/2027...................................................... 1,534,643 1,572,042 -------------- FEDERAL HOUSING ADMINISTRATION (FHA) (0.6%) FHA Insured Project Pool #23-11059 7.700% 08/01/2028................................................................... 1,609,689 1,643,186
SHARES OR PRINCIPAL AMOUNT VALUE(1) ------------- -------------- FHA Insured Project Pool #55 7.430% 04/01/2022................................................................... $ 1,898,328 $ 1,984,949 FHA Insured Project Pool #53-43077 9.125% 07/25/2033................................................................... 1,098,642 1,178,898 -------------- 4,807,033 -------------- AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS (18.5%) FHLMC Multiclass Mtg. Partn. Ctfs. Gtd. Series 1233 Cl. H 7.000% 04/15/2007................................................................... 600,000 618,000 FHLMC Multiclass Mtg. Partn. Ctfs. Gtd. Series 1543 Cl. XN 7.000% 07/15/2023................................................................... 5,617,000 5,804,538 FHLMC Multiclass Mtg. Partn. Ctfs. Gtd. Series 1627 Cl. EA 6.000% 05/15/2023................................................................... 1,817,000 1,678,561 FHLMC Multiclass Mtg. Partn. Ctfs. Gtd. Series 1763 Cl. H 8.250% 07/15/2023................................................................... 130,000 139,275 FHLMC Multiclass Mtg. Partn. Ctfs. Gtd. Series 1895 Cl. B 7.500% 12/15/2023................................................................... 3,940,000 4,044,646 FHLMC Multiclass Mtg. Partn. Ctfs. Gtd. Series 1904 Cl. C 7.250% 08/15/2024................................................................... 3,490,000 3,543,432 FHLMC Multiclass Mtg. Partn. Ctfs. Gtd. Series 1910 Cl. D 8.000% 11/15/2024................................................................... 1,883,000 1,979,752 FHLMC Multiclass Mtg. Partn. Ctfs. Gtd. Series 1933 Cl. C 7.000% 03/15/2025................................................................... 2,440,000 2,462,043 FHLMC Multiclass Mtg. Partn. Ctfs. Gtd. Series 1933 Cl. AE 7.000% 03/15/2025................................................................... 2,060,000 2,076,987 FHLMC Multiclass Mtg. Partn. Ctfs. Gtd. Series 1933 Cl. VC 7.550% 03/15/2012................................................................... 2,950,000 3,123,148 FHLMC Multiclass Mtg. Partn. Ctfs. Gtd. Series 1941 Cl. C 6.750% 06/15/2022................................................................... 2,690,000 2,690,834 FHLMC Multiclass Mtg. Partn. Ctfs. Gtd. Series 1971 Cl. A 7.500% 07/15/2027................................................................... 3,000,000 3,114,001 FHLMC Multiclass Mtg. Partn. Ctfs. Gtd. Series 1971 Cl. E 7.500% 01/20/2024................................................................... 16,580,000 17,035,535
41 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ------------------------ ------------------------ -- COLUMBIA BALANCED FUND, INC. -- ----------------------------------
SHARES OR PRINCIPAL AMOUNT VALUE(1) ------------- --------------
U.S. GOVERNMENT, FEDERAL AGENCY OBLIGATIONS (CONTINUED) FHLMC Multiclass Mtg. Partn. Ctfs. Gtd. Series 1995 Cl. A 7.500% 08/20/2027................................................................... $ 7,200,000 $ 7,460,732 FHLMC Multiclass Mtg. Partn. Ctfs. Gtd. Series 1995 Cl. D 7.500% 08/20/2012................................................................... 5,150,000 5,244,264 FHLMC GNMA Multiclass Mtg. Partn. Ctfs. Gtd. Series 40 Cl. N 6.500% 05/17/2021................................................................... 7,180,000 7,039,523 FHLMC GNMA Multiclass Mtg. Partn. Ctfs. Gtd. Series 62 Cl. B 7.500% 05/20/2024................................................................... 3,756,000 3,870,075 FNMA Gtd. REMIC Pass Thru Ctf. REMIC Tr. 1994-10 Cl. UU 6.500% 01/25/2024................................................................... 857,000 829,368 FNMA Gtd. REMIC Pass Thru Ctf. REMIC Tr. 1997-G1 Cl. B 7.500% 06/20/2024................................................................... 3,910,000 4,044,387 FNMA Gtd. REMIC Pass Thru Ctf. REMIC Tr. 1997-G4 Cl. C 7.500% 06/17/2024................................................................... 6,650,000 6,848,514 FNMA Gtd. REMIC Pass Thru Ctf. REMIC Tr. 1997-G5 Cl. VA 7.500% 07/17/2012................................................................... 5,700,000 6,007,780 FNMA Gtd. REMIC Pass Thru Ctf. REMIC Tr. 1997-27 Cl. B 7.000% 02/18/2025................................................................... 3,020,000 3,034,710 FNMA Gtd. REMIC Pass Thru Ctf. REMIC Tr. 1997-38 Cl. L 7.500% 02/17/2012................................................................... 1,760,000 1,774,087 FNMA Gtd. REMIC Pass Thru Ctf. REMIC Tr. 1997-39 Cl. B 7.500% 05/17/2027................................................................... 1,530,000 1,603,606 FNMA Gtd. REMIC Pass Thru Ctf. REMIC Tr. 1997-46 Cl. B 7.500% 03/17/2025................................................................... 3,900,000 4,003,252 FNMA Gtd. REMIC Pass Thru Ctf. REMIC Tr. 1997-63 Cl. PH 7.000% 07/18/2026................................................................... 6,510,000 6,673,970 FNMA Gtd. REMIC Pass Thru Ctf. REMIC Tr. 1997-74 Cl. D 7.500% 09/20/2023................................................................... 9,775,000 10,042,634 GNMA Gtd. REMIC Pass Thru Secs. REMIC Tr. 1996-15 Cl. B 7.500% 08/20/2020................................................................... 8,493,000 8,703,975
SHARES OR PRINCIPAL AMOUNT VALUE(1) ------------- -------------- GNMA Gtd. REMIC Pass Thru Secs. REMIC Tr. 1997-4 Cl. B 7.000% 08/16/2026................................................................... $ 4,214,914 $ 4,262,908 GNMA Gtd. REMIC Pass Thru Secs. REMIC Tr. 1997-4 Cl. C 7.000% 03/20/2027................................................................... 3,877,000 3,913,037 GNMA Gtd. REMIC Pass Thru Secs. REMIC Tr. 1997-4 Cl. M 7.500% 02/16/2012................................................................... 3,530,000 3,620,439 GNMA Gtd. REMIC Pass Thru Secs. REMIC Tr. 1997-4 Cl. N 7.500% 02/16/2027................................................................... 3,372,500 3,492,629 GNMA Gtd. REMIC Pass Thru Secs. REMIC Tr. 1997-11 Cl. M 8.000% 05/16/2024................................................................... 4,890,000 5,128,768 Puerto Rico Housing Finance Corp. Series A Cl. 4 9.000% 07/20/2017................................................................... 477,433 477,433 -------------- 146,386,843 -------------- Total U.S. Government, Federal Agency Obligations (Cost $205,197,469) ................................................................. 210,404,220 -------------- OTHER SECURITIZED LOANS (7.0%) COLLATERALIZED MORTGAGE OBLIGATIONS (5.3%) BA Mortgage Securities, Inc. Series 1997-2 Cl. 1A-3 7.400% 10/25/2027................................................................... 2,952,561 2,978,004 Bear Stearns Mortgage Securities, Inc. Series 1996-2 Cl. A1 6.758% 01/25/2025................................................................... 4,522,414 4,506,779 Bear Stearns Mortgage Securities, Inc. Series 1996-8 Cl. A9 7.600% 11/25/2027................................................................... 4,607,000 4,711,413 Bear Stearns Structured Securities, Inc. (144A) Series 1995-1 Cl. A 6.727% 09/25/2024................................................................... 3,138,131 3,041,811 CWHL, Inc. Mtg. Pass Thru Ctf. Series 1997-3 Cl. A10 7.500% 06/25/2027................................................................... 4,569,141 4,635,487 GE Capital Mortgage Services, Inc. Series 1997-8 Cl. A6 7.250% 10/25/2027................................................................... 2,460,000 2,518,579 Headlands Mortgage Securities, Inc. Series 1997-3 Cl. A-1-6 7.000% 07/25/2027................................................................... 4,810,000 4,828,890
42 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ------------------------ ------------------------ -- COLUMBIA BALANCED FUND, INC. -- ----------------------------------
SHARES OR PRINCIPAL AMOUNT VALUE(1) ------------- --------------
OTHER SECURITIZED LOANS (CONTINUED) Mortgage Obligation Structured Trust (144A) Series 1993-1 Cl. B1 10.668% 10/25/2018................................................................... $ 3,616,915 $ 3,785,897 Norwest Asset Securities Corp. Series 1997-16 Cl. A2 6.750% 10/25/2027................................................................... 5,385,900 5,345,609 PNC Mortgage Securities Corp. Series 1997-4 Cl. 2PP2 7.500% 07/25/2027................................................................... 2,750,000 2,798,242 Residential Funding Mortgage Securities I, Inc. Series 1997-S7 Cl. A-3 7.500% 05/25/2027................................................................... 3,051,000 3,143,418 -------------- 42,294,129 -------------- ASSET BACKED SECURITIES (1.7%) Green Tree Financial Corp. Series 1995-8 Cl. A2 6.150% 12/15/2026................................................................... 2,620,024 2,620,024 Green Tree Financial Corp. Series 1996-7 Cl. A2 6.300% 10/15/2027................................................................... 3,320,000 3,321,029 Lehman FHA Title I Loan Trust Series 1995-6 Cl. A-2 6.630% 05/25/2007................................................................... 5,422,573 5,409,384 The Money Store Residential Trust Series 1997-II Cl. A4 7.385% 01/15/2029................................................................... 1,982,000 2,009,867 -------------- 13,360,304 -------------- Total Other Securitized Loans (Cost $54,776,885) .................................................................. 55,654,433 -------------- CORPORATE BONDS (12.7%) INDUSTRIAL (5.9%) Allied Holdings, Inc. Series B 8.625% 10/01/2007................................................................... 500,000 507,500 American Home Products Corp. 7.700% 02/15/2000................................................................... 4,600,000 4,735,102 Amgen, Inc. 8.125% 04/01/2097................................................................... 2,425,000 2,674,193 Cinemark USA, Inc. Series B 9.625% 08/01/2008................................................................... 350,000 361,375 Coca-Cola Enterprises, Inc. 6.375% 08/01/2001................................................................... 4,000,000 4,028,440 Eckerd Corp. 9.250% 02/15/2004................................................................... 4,000,000 4,396,680
SHARES OR PRINCIPAL AMOUNT VALUE(1) ------------- -------------- Ethan Allen, Inc. 8.750% 03/15/2001................................................................... $ 3,450,000 $ 3,527,625 Federal Express Corp. Pass Thru Trust Series 1997-1C 7.650% 01/15/2014................................................................... 2,200,000 2,350,854 Georgia-Pacific Corp. 9.950% 06/15/2002................................................................... 3,061,000 3,464,287 Hilton Hotels Corp. 7.375% 06/01/2002................................................................... 3,500,000 3,593,520 Johns Manville International Grp. 10.875% 12/15/2004................................................................... 1,500,000 1,665,000 Jones Intercable, Inc. 8.875% 04/01/2007................................................................... 300,000 313,500 Lenfest Communications, Inc. 8.375% 11/01/2005................................................................... 650,000 667,875 Nabisco, Inc. 6.700% 06/15/2002................................................................... 2,000,000 2,025,680 Santa Fe Pacific Gold Corp. 8.375% 07/01/2005................................................................... 5,100,000 5,493,720 Teekay Shipping Corp. Guaranteed First Preferred Shipping Mtg. Notes 8.320% 02/01/2008................................................................... 1,000,000 1,020,000 Tenet Healthcare Corp. 10.125% 03/01/2005................................................................... 900,000 983,250 Time Warner Entertainment Co. L.P. 9.625% 05/01/2002................................................................... 1,900,000 2,122,737 8.375% 03/15/2023................................................................... 1,320,000 1,506,357 UCAR Global Enterprises Series B 12.000% 01/15/2005................................................................... 1,000,000 1,120,000 -------------- 46,557,695 -------------- FINANCIAL (5.8%) Abn Amro Bank N. V. Chicago 7.550% 06/28/2006................................................................... 3,575,000 3,825,393 Bankamerica Corp. 5.938% 02/20/2002................................................................... 3,800,000 3,788,030 Aetna Services, Inc. 7.625% 08/15/2026................................................................... 3,500,000 3,683,295 Bear Stearns Cos., Inc. Series B Medium Term Notes 5.779% 10/10/2000................................................................... 7,825,000 7,802,777 Caterpillar Financial Services Corp. Medium Term Notes 6.350% 12/01/1998................................................................... 1,590,000 1,592,179 Commercial Credit Group, Inc. 6.625% 06/01/2015................................................................... 1,250,000 1,291,325
43 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ------------------------ ------------------------ -- COLUMBIA BALANCED FUND, INC. -- ----------------------------------
SHARES OR PRINCIPAL AMOUNT VALUE(1) ------------- --------------
CORPORATE BONDS (CONTINUED) ERP Operating Limited Partnership (144A) 8.500% 05/15/1999................................................................... $ 2,700,000 $ 2,775,681 First Security Corp. 7.875% 10/15/1999................................................................... 1,325,000 1,361,000 +Fleet Mortgage Group, Inc. 6.500% 09/15/1999................................................................... 550,000 552,937 Goldman Sachs Group L.P. (144A) Medium Term Notes 7.200% 03/01/2007................................................................... 2,800,000 2,905,224 Hartford Life, Inc. 7.650% 06/15/2027................................................................... 2,555,000 2,702,398 Liberty Property L.P. 7.100% 08/15/2004................................................................... 3,525,000 3,605,934 Morgan Stanley Group, Inc. Medium Term Notes 5.750% 02/15/2001................................................................... 2,100,000 2,070,978 Security Capital Industrial Medium Term Notes 7.810% 02/01/2015................................................................... 3,250,000 3,403,725 Simon DeBartolo Group, L.P. 7.125% 09/20/2007................................................................... 2,300,000 2,360,076 Spieker Properties L.P. 6.900% 01/15/2004................................................................... 2,450,000 2,477,538 -------------- 46,198,490 -------------- UTILITY (0.5%) GTE North, Inc. 5.500% 02/15/1999................................................................... 2,905,000 2,886,030 Worldcom, Inc. 8.875% 01/15/2006................................................................... 1,000,000 1,075,920 -------------- 3,961,950 -------------- YANKEE (0.5%) Hydro-Quebec 8.400% 01/15/2022................................................................... 2,155,000 2,538,418
SHARES OR PRINCIPAL AMOUNT VALUE(1) ------------- -------------- Ontario Province CDA 6.000% 02/21/2006................................................................... $ 1,725,000 $ 1,698,383 -------------- 4,236,801 -------------- Total Corporate Bonds (Cost $99,154,016) .................................................................. 100,954,936 -------------- Total investments, excluding temporary cash investments (Cost $687,367,178) ................................................................. 781,687,536 -------------- REPURCHASE AGREEMENT (2.4%) Goldman Sachs Corp. 6.337% dated 12/31/1997, due 01/02/1998 in the amount of $18,645,686. Collateralized by U.S. Treasury Notes 5.875% due 08/31/1999 (Cost $18,639,214)................................................................... 18,639,214 18,639,214 -------------- TOTAL INVESTMENTS (101.0%) (Cost $706,006,392)...................................................................... 800,326,750 -------------- RECEIVABLES LESS LIABILITIES (-1.0%)...................................................... (7,948,494) -------------- NET ASSETS (100.0%)....................................................................... $ 792,378,256 -------------- --------------
(1) See Note 1 of Notes to Financial Statements. * Non-income producing. + Affiliated issuers. (Note 1) The accompanying notes are an integral part of the financial statements. 44 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ----------------------- ----------------------- -- COLUMBIA DAILY INCOME COMPANY -- -----------------------------------
PRINCIPAL December 31, 1997 AMOUNT VALUE(1) ------------- -------------- COMMERCIAL PAPER (90.1%) A. I. Credit Corp. 6.080% 01/06/1998................................................................... $ 4,510,000 $ 4,505,430 Air Products & Chemicals, Inc. 5.950% 01/07/1998................................................................... 5,000,000 4,994,215 Alabama Power Co. 5.910% 01/05/1998................................................................... 3,325,000 3,322,271 5.860% 01/06/1998................................................................... 5,000,000 4,995,117 6.000% 01/06/1998................................................................... 10,000,000 9,990,000 American General Finance Corp. 5.550% 01/28/1998................................................................... 5,000,000 4,978,417 5.500% 02/02/1998................................................................... 7,000,000 6,964,708 5.500% 02/11/1998................................................................... 5,000,000 4,967,917 5.720% 02/27/1998................................................................... 10,000,000 9,907,845 Ameritech Capital Funding Corp. 5.570% 01/29/1998................................................................... 5,000,000 4,977,565 Archer-Daniels-Midland Co. 6.200% 01/06/1998................................................................... 5,000,000 4,994,833 5.570% 01/21/1998................................................................... 6,000,000 5,980,505 5.530% 01/22/1998................................................................... 10,000,000 9,966,206 5.670% 02/11/1998................................................................... 5,000,000 4,966,925 5.700% 03/05/1998................................................................... 6,000,000 5,939,200 Associates Corp. of North America 6.740% 01/02/1998................................................................... 21,100,000 21,092,099 Atlantic Richfield Co. 5.580% 01/22/1998................................................................... 3,000,000 2,989,770 Avco Financial Services, Inc. 5.690% 03/02/1998................................................................... 5,000,000 4,951,794 5.680% 03/04/1998................................................................... 6,000,000 5,940,360 5.690% 03/04/1998................................................................... 6,000,000 5,940,255 5.690% 03/05/1998................................................................... 10,000,000 9,898,845 B.P. America, Inc. 6.100% 01/05/1998................................................................... 5,000,000 4,995,764 6.300% 01/05/1998................................................................... 5,000,000 4,995,625 6.000% 01/20/1998................................................................... 2,500,000 2,491,667 Bank of America, FSB 5.800% 01/12/1998................................................................... 5,000,000 4,990,333 5.570% 01/26/1998................................................................... 10,000,000 9,959,772 BankAmerica Corp. 5.530% 01/28/1998................................................................... 10,000,000 9,956,989 Barclays U.S. Funding Corp. 8.250% 01/02/1998................................................................... 10,000,000 9,995,417 8.500% 01/02/1998................................................................... 10,000,000 9,995,278 5.590% 01/27/1998................................................................... 7,000,000 6,970,653 Becton, Dickinson & Co. 6.150% 01/09/1998................................................................... 2,633,000 2,628,952 PRINCIPAL AMOUNT VALUE(1) ------------- -------------- Bell Atlantic Financial Services, Inc. 5.800% 01/09/1998................................................................... $ 10,000,000 $ 9,985,500 5.820% 01/13/1998................................................................... 19,000,000 18,960,068 Beneficial Corp. 5.630% 01/20/1998................................................................... 6,000,000 5,981,233 Brown-Forman Corp. 6.250% 01/06/1998................................................................... 4,755,000 4,750,047 CIT Group Holdings, Inc. 5.500% 02/02/1998................................................................... 5,000,000 4,974,792 5.500% 02/05/1998................................................................... 5,000,000 4,972,500 5.560% 02/09/1998................................................................... 7,000,000 6,956,756 5.720% 03/10/1998................................................................... 10,000,000 9,890,367 Cargill, Inc. 5.620% 03/03/1998................................................................... 15,000,000 14,854,817 Cargill Financial Services Corp. 5.640% 02/26/1998................................................................... 10,000,000 9,910,700 Chevron Transport Co. 5.550% 02/10/1998................................................................... 7,000,000 6,955,754 5.680% 03/06/1998................................................................... 5,000,000 4,948,723 5.700% 04/15/1998................................................................... 10,000,000 9,833,750 5.720% 04/17/1998................................................................... 6,000,000 5,897,994 Clorox Co. 5.680% 01/16/1998................................................................... 5,000,000 4,987,378 5.730% 02/23/1998................................................................... 5,000,000 4,957,025 5.730% 02/24/1998................................................................... 10,000,000 9,912,459 Commercial Credit Co. 5.500% 02/04/1998................................................................... 10,000,000 9,946,528 5.530% 02/04/1998................................................................... 5,000,000 4,973,118 5.600% 02/04/1998................................................................... 3,000,000 2,983,667 5.530% 02/05/1998................................................................... 10,000,000 9,944,700 Deere (John) Credit Co. 5.590% 01/20/1998................................................................... 5,000,000 4,984,472 Deere (John) Capital Corp. 5.560% 01/30/1998................................................................... 7,000,000 6,967,567 Disney (Walt) Co. 5.580% 02/23/1998................................................................... 10,000,000 9,916,300 5.600% 02/24/1998................................................................... 5,000,000 4,957,223 5.650% 03/27/1998................................................................... 7,000,000 6,905,520 Dow Jones & Co., Inc. 5.950% 01/14/1998................................................................... 1,900,000 1,895,604 duPont (E.I.) de Nemours & Co. 5.600% 01/20/1998................................................................... 1,600,000 1,595,022 5.520% 01/22/1998................................................................... 5,000,000 4,983,133 5.490% 02/03/1998................................................................... 5,000,000 4,974,075 5.670% 02/25/1998................................................................... 5,000,000 4,955,900 Florida Power Corp. 5.900% 01/12/1998................................................................... 10,000,000 9,980,333 5.880% 02/10/1998................................................................... 3,000,000 2,979,910
45 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ----------------------- ----------------------- -- COLUMBIA DAILY INCOME COMPANY -- -----------------------------------
PRINCIPAL AMOUNT VALUE(1) ------------- --------------
COMMERCIAL PAPER (CONTINUED) Ford Motor Credit Co. 6.170% 01/05/1998................................................................... $ 5,000,000 $ 4,995,715 5.920% 01/06/1998................................................................... 4,800,000 4,795,264 5.570% 01/21/1998................................................................... 8,000,000 7,974,007 5.570% 01/26/1998................................................................... 5,000,000 4,979,886 5.570% 02/03/1998................................................................... 15,000,000 14,921,092 General Electric Capital Corp. 5.830% 01/07/1998................................................................... 10,000,000 9,988,664 5.550% 02/06/1998................................................................... 15,000,000 14,914,437 5.580% 02/13/1998................................................................... 8,000,000 7,945,440 5.680% 03/11/1998................................................................... 5,000,000 4,944,778 Glaxo Wellcome plc 5.570% 01/21/1998................................................................... 5,000,000 4,983,754 5.670% 03/02/1998................................................................... 5,000,000 4,951,962 5.700% 03/10/1998................................................................... 7,000,000 6,923,525 5.670% 03/16/1998................................................................... 5,000,000 4,940,938 Goldman Sachs Group L.P. 5.870% 01/09/1998................................................................... 10,000,000 9,985,325 5.800% 01/15/1998................................................................... 5,000,000 4,987,917 5.650% 02/20/1998................................................................... 2,000,000 1,983,992 Hewlett-Packard Co. 6.200% 01/08/1998................................................................... 1,000,000 998,622 5.950% 01/21/1998................................................................... 5,376,000 5,357,341 Household Finance Corp. 5.700% 01/16/1998................................................................... 5,000,000 4,987,333 5.550% 02/09/1998................................................................... 8,000,000 7,950,667 5.670% 02/17/1998................................................................... 5,000,000 4,962,200 5.580% 02/20/1998................................................................... 10,000,000 9,920,950 Idaho Power Co. 5.860% 01/13/1998................................................................... 5,000,000 4,989,420 McGraw-Hill Companies, Inc. 5.580% 01/29/1998................................................................... 6,000,000 5,973,030 5.670% 03/19/1998................................................................... 4,600,000 4,543,489 Merrill Lynch & Co., Inc. 5.850% 01/15/1998................................................................... 10,000,000 9,975,625 5.640% 01/20/1998................................................................... 2,800,000 2,791,227 5.560% 02/11/1998................................................................... 10,000,000 9,935,134 5.610% 02/25/1998................................................................... 10,000,000 9,912,734 5.680% 02/27/1998................................................................... 2,500,000 2,477,122 5.690% 02/27/1998................................................................... 2,500,000 2,477,082 MetLife Funding, Inc. 5.700% 01/16/1998................................................................... 10,000,000 9,974,667 5.680% 01/22/1998................................................................... 2,000,000 1,993,058 5.660% 02/12/1998................................................................... 5,000,000 4,966,197 5.660% 02/17/1998................................................................... 5,000,000 4,962,267 5.660% 02/19/1998................................................................... 5,000,000 4,960,695
PRINCIPAL AMOUNT VALUE(1) ------------- -------------- Minnesota Mining & Manufacturing Co. 5.580% 02/18/1998................................................................... $ 5,000,000 $ 4,962,025 5.580% 02/19/1998................................................................... 15,000,000 14,883,750 Monsanto Co. 6.300% 01/05/1998................................................................... 5,000,000 4,995,625 5.820% 01/08/1998................................................................... 10,000,000 9,987,066 6.250% 01/08/1998................................................................... 10,000,000 9,986,111 5.950% 01/15/1998................................................................... 3,843,000 3,833,473 6.020% 01/16/1998................................................................... 5,000,000 4,986,622 Morgan Stanley Group, Inc. 5.800% 01/15/1998................................................................... 2,000,000 1,995,167 5.530% 01/27/1998................................................................... 5,000,000 4,979,263 5.530% 01/30/1998................................................................... 10,000,000 9,953,917 5.590% 02/17/1998................................................................... 10,000,000 9,925,467 Nalco Chemical Co. 5.700% 03/09/1998................................................................... 10,000,000 9,892,334 5.710% 03/20/1998................................................................... 10,000,000 9,874,697 5.700% 03/23/1998................................................................... 10,000,000 9,870,167 National Rural Utilities Cooperative Finance Corp. 6.150% 01/09/1998................................................................... 2,800,000 2,795,695 5.670% 03/09/1998................................................................... 5,000,000 4,946,450 5.690% 03/09/1998................................................................... 5,000,000 4,946,262 5.650% 03/12/1998................................................................... 10,000,000 9,888,570 5.690% 03/23/1998................................................................... 6,000,000 5,922,237 Norwest Financial, Inc. 5.820% 01/13/1998................................................................... 5,000,000 4,989,492 5.820% 01/14/1998................................................................... 10,000,000 9,977,367 5.790% 01/27/1998................................................................... 4,000,000 3,982,630 5.790% 01/30/1998................................................................... 3,000,000 2,985,525 5.700% 02/24/1998................................................................... 5,000,000 4,956,459 PacifiCorp 5.750% 01/23/1998................................................................... 2,000,000 1,992,653 5.770% 02/02/1998................................................................... 2,963,000 2,947,328 5.720% 02/26/1998................................................................... 10,000,000 9,909,434 Procter & Gamble Co. 5.570% 02/18/1998................................................................... 3,000,000 2,977,256 Prudential Funding Corp. 5.510% 01/23/1998................................................................... 5,000,000 4,982,399 5.520% 01/26/1998................................................................... 5,000,000 4,980,067 5.570% 01/28/1998................................................................... 5,000,000 4,978,339 5.510% 01/29/1998................................................................... 13,000,000 12,942,298 SBC Communications, Inc. 5.760% 01/20/1998................................................................... 5,000,000 4,984,000 St. Paul Cos., Inc. 5.580% 02/05/1998................................................................... 5,000,000 4,972,100 5.580% 02/09/1998................................................................... 5,000,000 4,969,000 5.580% 02/13/1998................................................................... 2,000,000 1,986,360
46 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ----------------------- ----------------------- -- COLUMBIA DAILY INCOME COMPANY -- -----------------------------------
PRINCIPAL AMOUNT VALUE(1) ------------- --------------
COMMERCIAL PAPER (CONTINUED) Sonoco Products Co. 6.800% 01/02/1998................................................................... $ 16,933,000 $ 16,926,603 Southern California Gas Co. 5.550% 01/23/1998................................................................... 3,000,000 2,989,363 5.580% 01/23/1998................................................................... 8,000,000 7,971,480 Southern New England Telecom 5.850% 01/05/1998................................................................... 2,221,000 2,219,195 Texaco, Inc. 5.880% 01/09/1998................................................................... 10,000,000 9,985,300 5.730% 03/06/1998................................................................... 10,000,000 9,896,542 USAA Capital Corp. 5.570% 02/12/1998................................................................... 15,000,000 14,900,204 5.570% 02/13/1998................................................................... 6,400,000 6,356,430 5.680% 04/07/1998................................................................... 5,000,000 4,923,479 Washington Gas Light Co. 5.570% 02/02/1998................................................................... 8,000,000 7,959,154 5.700% 02/18/1998................................................................... 6,800,000 6,747,244 Washington Post Co. 6.080% 01/07/1998................................................................... 10,000,000 9,988,178 Weyerhaeuser Real Estate Co. 5.820% 01/06/1998................................................................... 5,000,000 4,995,150 5.820% 01/07/1998................................................................... 5,000,000 4,994,342 5.820% 01/08/1998................................................................... 10,000,000 9,987,067 5.800% 01/12/1998................................................................... 10,000,000 9,980,667 Xerox Credit Corp. 5.530% 01/27/1998................................................................... 4,000,000 3,983,410 5.540% 02/10/1998................................................................... 10,000,000 9,936,906 5.650% 02/20/1998................................................................... 6,000,000 5,951,975 5.650% 03/24/1998................................................................... 5,000,000 4,934,868 -------------- Total Commercial Paper (Cost $1,053,008,380) ............................................................... 1,053,008,380 --------------
PRINCIPAL AMOUNT VALUE(1) ------------- -------------- REPURCHASE AGREEMENTS (10.3%) Goldman Sachs Corp. 6.337% dated 12/31/1997, due 01/02/1998 in the amount of $649,533. Collateralized by U.S. Treasury Notes 5.875% due 08/31/1999................................................................ $ 649,308 $ 649,308 J.P. Morgan Securities, Inc. 6.521% dated 12/31/1997, due 01/02/1998 in the amount of $60,021,440. Collateralized by U.S. Treasury Notes 3.625% to 7.500% due 08/31/2000 to 02/15/2005......................................................... 60,000,000 60,000,000 Merrill Lynch 6.388% dated 12/31/1997, due 01/02/1998 in the amount of $60,021,000. Collateralized by U.S. Treasury Bonds 6.250% to 7.625% due 02/15/2023 to 08/15/2025......................................................... 60,000,000 60,000,000 -------------- Total Repurchase Agreements (Cost $120,649,308) ................................................................. 120,649,308 -------------- TOTAL INVESTMENTS (100.4%) (Cost $1,173,657,688, including $6,537,187 accrued interest receivable).................. 1,173,657,688 CASH AND RECEIVABLES LESS LIABILITIES (-0.4%)............................................. (4,562,120) -------------- NET ASSETS (100.0%)....................................................................... $1,169,095,568 -------------- --------------
(1) See Note 1 of Notes to Financial Statements. The accompanying notes are an integral part of the financial statements. 47 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - -------------- -------------- -- COLUMBIA U.S. GOVERNMENT SECURITIES FUND, INC. -- ----------------------------------------------------
PRINCIPAL December 31, 1997 AMOUNT VALUE(1) ------------- -------------- U.S. TREASURY NOTES (98.1%) 6.875% 08/31/1999................................................................... $ 7,675,000 $ 7,818,906 5.875% 11/15/1999................................................................... 16,225,000 16,280,782 5.875% 02/15/2000................................................................... 9,750,000 9,786,562 6.000% 08/15/2000................................................................... 3,200,000 3,224,000 -------------- Total U.S. Treasury Notes (Cost $37,019,300) .................................................................. 37,110,250 REPURCHASE AGREEMENT (1.3%) Goldman Sachs Corp. 6.337% dated 12/31/1997, due 01/02/1998 in the amount of $489,830. Collateralized by U.S. Treasury Notes 5.875% due 08/31/1999. (Cost $489,660) ..................................................................... 489,660 489,660 -------------- TOTAL INVESTMENTS (99.4%) (Cost $37,508,960)....................................................................... 37,599,910 RECEIVABLES LESS LIABILITIES (0.6%)....................................................... 236,765 -------------- NET ASSETS (100.0%)....................................................................... $ 37,836,675 -------------- --------------
(1) See Note 1 of Notes to Financial Statements. The accompanying notes are an integral part of the financial statements. 48 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ---------------- ---------------- -- COLUMBIA FIXED INCOME SECURITIES FUND, INC. -- -------------------------------------------------
PRINCIPAL December 31, 1997 AMOUNT VALUE(1) ------------- -------------- U.S. GOVERNMENT, FEDERAL AGENCY OBLIGATIONS (55.8%) U.S. TREASURY BONDS & NOTES (12.8%) U.S. Treasury Bonds 8.875% 08/15/2017................................................................... $ 14,630,000 $ 19,414,464 8.125% 08/15/2019................................................................... 5,000,000 6,257,815 U.S. Treasury Notes 6.125% 08/31/1998................................................................... 23,054,000 23,129,640 -------------- 48,801,919 -------------- OTHER GOVERNMENT AGENCY OBLIGATIONS (1.4%) Farm Credit Systems Financial Assistance Corp. Series A 9.375% 07/21/2003................................................................... 4,660,000 5,408,489 -------------- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) (2.9%) 7.500% 10/15/2026 - 10/15/2027...................................................... 10,640,503 10,899,812 -------------- FEDERAL HOUSING ADMINISTRATION (FHA) (1.4%) FHA Insured Project Pool #2022 7.430% 12/01/2020................................................................... 1,720,239 1,729,649 FHA Insured Project Pool #1984-D 9.680% 02/01/2024................................................................... 268,635 280,807 FHA Insured Project Pool #051-11078 8.350% 04/01/2030................................................................... 2,217,205 2,323,077 FHA Insured Project Pool #092-35499 8.450% 11/15/2031................................................................... 789,545 829,519 -------------- 5,163,052 -------------- AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS (37.3%) FHLMC Multiclass Mtg. Partn. Ctfs. Gtd. Series 1558 Cl. C 6.500% 07/15/2023................................................................... 2,084,000 2,058,835 FHLMC Multiclass Mtg. Partn. Ctfs. Gtd. Series 1971 Cl. A 7.500% 07/15/2027................................................................... 4,041,000 4,194,560 FHLMC Multiclass Mtg. Partn. Ctfs. Gtd. Series 1971 Cl. E 7.500% 01/20/2024................................................................... 16,646,000 17,103,349 FHLMC Multiclass Mtg. Partn. Ctfs. Gtd. Series 1995 Cl. A 7.500% 08/20/2027................................................................... 1,750,000 1,813,372 FHLMC Multiclass Mtg. Partn. Ctfs. Gtd. Series 1995 Cl. D 7.500% 08/20/2012................................................................... 9,155,000 9,322,569 FHLMC GNMA Multiclass Mtg. Partn. Ctfs. Gtd. Series 40 Cl. N 6.500% 05/17/2021................................................................... 4,700,000 4,608,044 PRINCIPAL AMOUNT VALUE(1) ------------- -------------- FHLMC Multiclass Mtg. Partn. Ctfs. Gtd. Series 1763 Cl. H 8.250% 07/15/2023................................................................... $ 692,000 $ 741,370 FHLMC Multiclass Mtg. Partn. Ctfs. Gtd. Series 1910 Cl. D 8.000% 11/15/2024................................................................... 1,850,000 1,945,057 FHLMC Multiclass Mtg. Partn. Ctfs. Gtd. Series 1920 Cl. N 7.000% 02/15/2026................................................................... 3,110,000 3,110,000 FHLMC Multiclass Mtg. Partn. Ctfs. Gtd. Series 1941 Cl. C 6.750% 06/15/2022................................................................... 2,980,000 2,980,924 FHLMC Multiclass Mtg. Partn. Ctfs. Gtd. Series 1933 Cl. AE 7.000% 03/15/2025................................................................... 5,156,300 5,198,820 FHLMC Multiclass Mtg. Partn. Ctfs. Gtd. Series 1933 Cl. C 7.000% 03/15/2025................................................................... 3,316,818 3,346,782 FNMA Gtd. REMIC Pass Thru Ctf. REMIC Tr. 1991-94 Cl. C 0.000% 01/25/1999................................................................... 1,654,184 1,609,719 FNMA Gtd. REMIC Pass Thru Ctf. REMIC Tr. 1997-G1 Cl. B 7.500% 06/20/2024................................................................... 7,760,000 8,026,711 FNMA Gtd. REMIC Pass Thru Ctf. REMIC Tr. 1997-G4 Cl. C 7.500% 06/17/2024................................................................... 7,223,000 7,438,620 FNMA Gtd. REMIC Pass Thru Ctf. REMIC Tr. 1997-G5 Cl. VD 7.250% 04/17/2010................................................................... 3,600,000 3,737,611 FNMA Gtd. REMIC Pass Thru Ctf. REMIC Tr. 1997-24 Cl. YL 7.000% 04/18/2027................................................................... 3,166,000 3,199,890 FNMA Gtd. REMIC Pass Thru Ctf. REMIC Tr. 1997-38 Cl. G 7.500% 05/17/2026................................................................... 1,843,511 1,884,476 FNMA Gtd. REMIC Pass Thru Ctf. REMIC Tr. 1997-38 Cl. H 7.500% 05/17/2027................................................................... 1,766,000 1,842,838 FNMA Gtd. REMIC Pass Thru Ctf. REMIC Tr. 1997-38 Cl. L 7.500% 02/17/2012................................................................... 4,100,000 4,132,816 FNMA Gtd. REMIC Pass Thru Ctf. REMIC Tr. 1997-39 Cl. B 7.500% 05/17/2027................................................................... 2,673,000 2,801,594 FNMA Gtd. REMIC Pass Thru Ctf. REMIC Tr. 1997-43 Cl. B 7.500% 08/18/2025................................................................... 9,700,000 9,991,569
49 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ---------------- ---------------- -- COLUMBIA FIXED INCOME SECURITIES FUND, INC. -- -------------------------------------------------
PRINCIPAL AMOUNT VALUE(1) ------------- --------------
U.S. GOVERNMENT, FEDERAL AGENCY OBLIGATIONS (CONTINUED) FNMA Gtd. REMIC Pass Thru Ctf. REMIC Tr. 1997-44 Cl. PG 7.000% 02/18/2024................................................................... $ 3,920,000 $ 4,024,673 FNMA Gtd. REMIC Pass Thru Ctf. REMIC Tr. 1997-63 Cl. PH 7.000% 07/18/2026................................................................... 7,230,000 7,412,105 FNMA Gtd. REMIC Pass Thru Ctf. REMIC Tr. 1997-74 Cl. D 7.500% 09/20/2023................................................................... 10,600,000 10,890,222 GNMA Gtd. REMIC Pass Thru Secs. REMIC Tr. 1996-23 Cl. C 7.500% 12/20/2022................................................................... 3,607,000 3,721,955 GNMA Gtd. REMIC Pass Thru Secs. REMIC Tr. 1997-11 Cl. M 8.000% 05/16/2024................................................................... 1,190,000 1,248,105 GNMA Gtd. REMIC Pass Thru Secs. REMIC Tr. 1997-2 Cl. K 7.500% 01/20/2024................................................................... 2,410,000 2,489,819 GNMA Gtd. REMIC Pass Thru Secs. REMIC Tr. 1997-4 Cl. M 7.500% 02/16/2012................................................................... 4,357,000 4,468,626 GNMA Gtd. REMIC Pass Thru Secs. REMIC Tr. 1997-4 Cl. N 7.500% 02/16/2027................................................................... 4,165,468 4,313,842 GNMA Gtd. REMIC Pass Thru Secs. REMIC Tr. 1998-1 Cl. A 7.000% 01/15/2028................................................................... 1,890,000 1,878,773 Puerto Rico Housing Finance Corp. Series A Cl. 4 9.000% 07/20/2017................................................................... 864,542 864,542 -------------- 142,402,188 -------------- Total U.S. Government, Federal Agency Obligations (Cost $206,029,797) ................................................................. 212,675,460 -------------- OTHER SECURITIZED LOANS (13.2%) COLLATERALIZED MORTGAGE OBLIGATIONS (10.2%) BA Mortgage Securities, Inc. Series 1997-2 Cl. 1A-3 7.400% 10/25/2027................................................................... 2,913,413 2,938,518 Bear Stearns Mortgage Securities, Inc. Series 1996-2 Cl. A1 6.758% 01/25/2025................................................................... 4,298,842 4,283,979 GE Capital Mortgage Services, Inc. Series 1997-8 Cl. A6 7.250% 10/25/2027................................................................... 2,480,000 2,539,056
PRINCIPAL AMOUNT VALUE(1) ------------- -------------- GE Capital Mortgage Services, Inc. Series 1997-8 Cl. A7 7.250% 10/25/2027................................................................... $ 6,232,714 $ 6,273,296 Mortgage Obligation Structured Trust (144A) Series 1993-1 Cl. B1 10.668% 10/25/2018................................................................... 2,837,841 2,970,425 Norwest Asset Securities Corp. Series 1997-16 Cl. A2 6.750% 10/25/2027................................................................... 13,470,000 13,369,234 PNC Mortgage Securities Corp. Series 1997-4 Cl. 2PP2 7.500% 07/25/2027................................................................... 2,895,000 2,945,786 Residential Funding Morgage Securities, Inc. Series 1993-S45 Cl. A-10 8.000% 12/25/2023................................................................... 1,250,000 1,286,756 Structured Asset Securities Corp. Series 1997-4 Cl. 2A2 7.000% 12/25/2027................................................................... 2,500,000 2,525,440 -------------- 39,132,490 -------------- ASSET BACKED SECURITIES (3.0%) Empire Funding Home Loan Owner Trust Series 1997-1 Cl. A-2 7.060% 03/25/2023................................................................... 2,890,000 2,903,901 Empire Funding Home Loan Owner Trust Series 1997-2 Cl. A-1 8.850% 09/25/2023................................................................... 1,896,251 1,895,984 Saxon Asset Securities Co. Series 1996-1 Cl. A2 8.060% 09/25/2027................................................................... 6,265,000 6,546,925 -------------- 11,346,810 -------------- Total Other Securitized Loans (Cost $49,626,860) .................................................................. 50,479,300 -------------- CORPORATE BONDS (25.9%) INDUSTRIAL (11.0%) Ethan Allen, Inc. 8.750% 03/15/2001................................................................... 1,975,000 2,019,437 Federal Express Corp. Pass Thru Trust Series 1997-1C 7.650% 01/15/2014................................................................... 2,300,000 2,457,711 Foster Wheeler Corp. 6.750% 11/15/2005................................................................... 2,925,000 2,943,486 Georgia-Pacific Corp. 9.950% 06/15/2002................................................................... 3,250,000 3,678,187 Gulf Canada Resources Ltd. 9.625% 07/01/2005................................................................... 1,250,000 1,359,375
50 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ---------------- ---------------- -- COLUMBIA FIXED INCOME SECURITIES FUND, INC. -- -------------------------------------------------
PRINCIPAL AMOUNT VALUE(1) ------------- --------------
CORPORATE BONDS (CONTINUED) Heritage Media Corp. 8.750% 02/15/2006................................................................... $ 1,250,000 $ 1,329,687 Hilton Hotels Corp. 7.375% 06/01/2002................................................................... 4,000,000 4,106,880 Hollinger International Publishing, Inc. 8.625% 03/15/2005................................................................... 300,000 310,500 ICI Wilmington, Inc. 7.050% 09/15/2007................................................................... 3,805,000 3,949,476 Johns Manville International Grp. 10.875% 12/15/2004................................................................... 1,500,000 1,665,000 Lenfest Communications, Inc. 8.375% 11/01/2005................................................................... 1,350,000 1,387,125 Marriott International, Inc. 6.750% 12/01/2009................................................................... 2,750,000 2,807,613 Nabisco, Inc. 6.700% 06/15/2002................................................................... 3,750,000 3,798,150 Precision Castparts Corp. 6.750% 12/15/2007................................................................... 1,650,000 1,653,482 Sears, Roebuck Acceptance Corp. 6.400% 10/11/2000................................................................... 4,525,000 4,552,060 Tenet Healthcare Corp. 8.625% 12/01/2003................................................................... 750,000 781,875 Time Warner Entertainment Co. L.P. 8.375% 03/15/2023................................................................... 2,600,000 2,967,068 -------------- 41,767,112 -------------- FINANCIAL (13.4%) Aetna Services, Inc. 7.625% 08/15/2026................................................................... 5,000,000 5,261,850 American Health Properties, Inc. 7.500% 01/15/2007................................................................... 650,000 677,469 Bankamerica Corp. 5.938% 02/20/2002................................................................... 3,500,000 3,488,975 Deutsche Bank Financial, Inc. 7.500% 04/25/2009................................................................... 2,700,000 2,908,116 Equitable Cos., Inc. 9.000% 12/15/2004................................................................... 855,000 969,630 First Bank System, Inc. 6.188% 11/26/2010................................................................... 7,230,000 7,222,770 Ford Motor Credit Co. 6.500% 02/28/2002................................................................... 4,135,000 4,175,978 General Electric Capital Corp. Medium Term Notes 6.350% 09/15/2001................................................................... 3,200,000 3,252,224 Goldman Sachs Group L.P. (144A) Medium Term Notes 7.200% 03/01/2007................................................................... 3,700,000 3,839,046
PRINCIPAL AMOUNT VALUE(1) ------------- -------------- Health Care Properties, Inc. 6.500% 02/15/2006................................................................... $ 6,400,000 $ 6,362,304 Liberty Property L.P. 7.100% 08/15/2004................................................................... 3,725,000 3,810,526 Merrill Lynch & Co., Inc. Medium Term Notes 6.450% 06/20/2000................................................................... 3,650,000 3,680,441 Swiss Bank Corp. N.Y. 7.250% 09/01/2006................................................................... 1,825,000 1,923,714 USL Capital Corp. 6.500% 12/01/2003................................................................... 3,350,000 3,358,475 -------------- 50,931,518 -------------- UTILITY (1.5%) California Energy Co., Inc. 9.875% 06/30/2003................................................................... 1,000,000 1,084,570 Northern Indiana Public Service Co. Medium Term Notes 6.900% 06/01/2000................................................................... 1,250,000 1,269,538 6.750% 06/01/2000................................................................... 2,500,000 2,530,800 Worldcom, Inc. 8.875% 01/15/2006................................................................... 900,000 968,328 -------------- 5,853,236 -------------- Total Corporate Bonds (Cost $96,450,075) .................................................................. 98,551,866 -------------- Total investments, excluding temporary cash investment (Cost $352,106,732) ................................................................. 361,706,626 -------------- REPURCHASE AGREEMENT (4.4%) Goldman Sachs Corp. 6.337% dated 12/31/1997, due 01/02/1998 in the amount of $16,762,082 Collateralized by U.S. Treasury Notes 5.875% due 08/31/1999 (Cost $16,756,264)................................................................... 16,756,264 16,756,264 -------------- TOTAL INVESTMENTS (99.3%) (Cost $368,862,996)...................................................................... 378,462,890 RECEIVABLES LESS LIABILITIES (0.7%)....................................................... 2,869,864 -------------- NET ASSETS (100.0%)....................................................................... $ 381,332,754 -------------- --------------
(1) See Note 1 of Notes to Financial Statements. The accompanying notes are an integral part of the financial statements. 51 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - --------------------- --------------------- -- COLUMBIA MUNICIPAL BOND FUND, INC. -- ----------------------------------------
PRINCIPAL December 31, 1997 AMOUNT VALUE(1) ------------- -------------- STATE OF OREGON GENERAL OBLIGATION BONDS (8.5%) Board of Higher Education Series A 0.000% 08/01/2014................................................................... $ 450,000 $ 196,312 5.900% 08/01/2018................................................................... 1,000,000 1,072,500 Board of Higher Education Refunding Series B 6.250% 10/15/2012................................................................... 740,000 799,200 Elderly & Disabled Housing Refunding Series B 6.250% 08/01/2013................................................................... 1,000,000 1,090,000 Pollution Control Series C 5.625% 06/01/2013................................................................... 2,830,000 2,875,987 5.900% 06/01/2014................................................................... 3,670,000 3,747,987 Veterans' Welfare 11.000% 06/01/1999................................................................... 865,000 947,175 7.000% 07/01/2000................................................................... 1,350,000 1,449,563 9.000% 10/01/2000................................................................... 1,010,000 1,140,038 11.000% 12/01/2000................................................................... 865,000 1,029,350 0.000% 07/01/2001................................................................... 1,200,000 1,041,000 6.000% 08/01/2002................................................................... 2,000,000 2,157,500 6.000% 02/01/2004................................................................... 695,000 761,025 9.000% 04/01/2004................................................................... 280,000 352,100 9.000% 04/01/2005................................................................... 1,010,000 1,302,900 8.250% 07/01/2005................................................................... 500,000 625,625 9.000% 10/01/2005................................................................... 1,640,000 2,142,250 7.250% 01/01/2007................................................................... 1,485,000 1,798,706 9.200% 04/01/2007................................................................... 2,345,000 3,183,338 8.250% 07/01/2007................................................................... 540,000 697,950 9.200% 10/01/2007................................................................... 1,250,000 1,717,188 8.000% 01/01/2008................................................................... 1,220,000 1,557,025 7.300% 07/01/2008................................................................... 1,125,000 1,387,969 8.000% 07/01/2008................................................................... 480,000 617,400 5.850% 10/01/2015................................................................... 1,075,000 1,158,312 -------------- Total State of Oregon General Obligation Bonds (Cost $32,697,391) .................................................................. 34,848,400 -------------- OREGON GENERAL OBLIGATION BONDS (19.6%) Clackamas & Washington Counties School District #3JT West Linn-Wilsonville 5.875% 10/01/2009................................................................... 2,550,000 2,750,812 Clackamas County School District #7J Lake Oswego Series A 5.300% 06/15/2005................................................................... 1,000,000 1,061,250 5.500% 06/15/2006................................................................... 1,000,000 1,066,250 5.700% 06/15/2010................................................................... 2,735,000 2,888,844 Clackamas Community College District 5.250% 12/01/2009................................................................... 1,270,000 1,346,200 PRINCIPAL AMOUNT VALUE(1) ------------- -------------- Deschutes County Administrative School District #1 Bend-Lapine 0.000% 02/01/2000................................................................... $ 1,175,000 $ 1,082,469 0.000% 02/01/2001................................................................... 1,135,000 1,003,056 0.000% 02/01/2002................................................................... 1,445,000 1,221,025 5.800% 02/01/2004................................................................... 780,000 828,750 5.900% 02/01/2005................................................................... 980,000 1,042,475 Eugene Public Safety 6.000% 06/01/2005................................................................... 850,000 939,250 Eugene Public Safety Facilities 5.625% 06/01/2013................................................................... 1,295,000 1,366,225 Jackson County School District #549C Medford 5.375% 06/01/2012................................................................... 1,200,000 1,233,000 Lane County Area Education District Lane Community College 5.300% 06/01/2007................................................................... 1,000,000 1,063,750 4.850% 06/01/2008................................................................... 4,080,000 4,192,200 5.000% 06/01/2009................................................................... 1,000,000 1,042,500 Lane County School District #1 Pleasant Hill 5.350% 12/01/2012................................................................... 650,000 673,562 5.450% 12/01/2013................................................................... 725,000 754,000 Lane County School District #4J Eugene 0.000% 01/01/2003................................................................... 1,345,000 1,087,769 0.000% 01/01/2005................................................................... 1,395,000 1,027,069 Lane County School District #4J Eugene Refunding Series A 0.000% 07/01/2001................................................................... 2,015,000 1,745,494 0.000% 07/01/2003................................................................... 1,480,000 1,171,050 0.000% 07/01/2005................................................................... 2,325,000 1,674,000 5.250% 07/01/2008................................................................... 590,000 609,912 Lane County School District #19 Springfield Refunding 0.000% 02/01/1999................................................................... 470,000 450,697 Metro Open Spaces Program Series C 5.100% 09/01/2009................................................................... 2,375,000 2,443,281 Metro Washington Park Zoo Series A 5.250% 01/15/2009................................................................... 1,040,000 1,090,700 5.300% 01/15/2011................................................................... 1,000,000 1,040,000 Milwaukie, Or 4.650% 06/01/2009................................................................... 405,000 410,062 4.750% 06/01/2010................................................................... 425,000 430,844 4.850% 06/01/2011................................................................... 340,000 343,400 Multnomah-Clackamas Counties School District No. 10JT Gresham 5.250% 06/01/2017................................................................... 1,620,000 1,634,175
52 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - --------------------- --------------------- -- COLUMBIA MUNICIPAL BOND FUND, INC. -- ----------------------------------------
PRINCIPAL AMOUNT VALUE(1) ------------- --------------
OREGON GENERAL OBLIGATION BONDS (CONTINUED) Multnomah-Clackamas Counties School District #51JT Riverdale 5.750% 06/01/2016................................................................... $ 2,270,000 $ 2,394,850 Multnomah County Public Improvements 5.250% 10/01/2013................................................................... 1,800,000 1,842,750 Multnomah County School District #4 Gresham 6.100% 01/01/2008................................................................... 3,000,000 3,198,750 6.100% 01/01/2009................................................................... 200,000 212,500 Multnomah County School District #7 Reynolds 5.250% 06/01/2011................................................................... 1,500,000 1,545,000 Multnomah County School District #40 David Douglas 7.100% 06/01/2002................................................................... 880,000 985,600 Port of Portland Series A 0.000% 03/01/2007................................................................... 3,000,000 1,980,000 Portland Public Improvements Series A 5.750% 06/01/2014................................................................... 2,400,000 2,463,000 Portland Public Improvements Series B 4.625% 12/01/2010................................................................... 300,000 301,125 Portland Recreational Facilities Improvements Series A 5.750% 06/01/2012................................................................... 1,370,000 1,462,475 5.750% 06/01/2013................................................................... 1,345,000 1,430,744 5.750% 06/01/2015................................................................... 1,155,000 1,225,744 Portland Recreational Facilities Improvements Series B 5.500% 06/01/2009................................................................... 2,115,000 2,231,325 5.750% 06/01/2014................................................................... 1,750,000 1,861,563 5.750% 06/01/2015................................................................... 2,955,000 3,128,606 Portland Community College District 0.000% 07/01/2007................................................................... 2,025,000 1,326,375 Tri-County Metropolitan Transportation District Light Rail Extension Series A 6.000% 07/01/2012................................................................... 3,495,000 3,717,806 Tualatin Hills Park & Recreation District 5.700% 03/01/2009................................................................... 1,340,000 1,428,775 5.750% 03/01/2010................................................................... 730,000 775,625 Washington County Refunding 6.200% 12/01/2007................................................................... 1,500,000 1,605,000 Washington & Clackamas Counties School District #23J Tigard Refunding 5.400% 01/01/2010................................................................... 1,720,000 1,784,500 Washington County School District #48J Beaverton Series B 6.150% 06/01/2008................................................................... 1,010,000 1,057,975
PRINCIPAL AMOUNT VALUE(1) ------------- -------------- Washington County School District #48J Beaverton Series C 7.800% 06/01/2003................................................................... $ 1,200,000 $ 1,404,000 -------------- Total Oregon General Obligation Bonds (Cost $75,734,827) .................................................................. 80,078,159 -------------- OREGON REVENUE BONDS (14.7%) Albany Hospital Facility Authority Mennonite Home 5.625% 10/01/2017................................................................... 375,000 381,094 Clackamas County Hospital Facility Authority Robison Jewish Home Project 6.250% 10/01/2021................................................................... 2,000,000 2,046,400 Clackamas County Hospital Facility Authority GNMA Collateral Jennings Lodge 7.500% 10/20/2031................................................................... 1,030,000 1,113,687 Clackamas County Housing Authority Multifamily Housing Easton Ridge Series A 5.800% 12/01/2016................................................................... 2,255,000 2,342,381 Deschutes County Hospital Facility Authority 5.750% 01/01/2009................................................................... 1,670,000 1,763,937 Deschutes Valley Water District 5.875% 09/01/2005................................................................... 3,420,000 3,685,050 Eugene Electric Utility Refunding 5.800% 08/01/2008................................................................... 1,435,000 1,508,544 5.800% 08/01/2009................................................................... 1,300,000 1,361,750 6.000% 08/01/2011................................................................... 1,375,000 1,450,625 Eugene Electric Utility 5.000% 08/01/2017................................................................... 1,480,000 1,467,050 Eugene Electric Utility Series C 5.750% 08/01/2011................................................................... 715,000 757,006 5.750% 08/01/2016................................................................... 1,055,000 1,105,113 Gresham Sewer 5.350% 06/01/2006................................................................... 860,000 909,450 Gresham Stormwater 6.100% 10/01/2009................................................................... 1,115,000 1,220,925 Hillsboro Hospital Facility Authority Tuality Healthcare 5.750% 10/01/2012................................................................... 2,395,000 2,484,813 Lebanon Wastewater Refunding 5.750% 06/01/2011................................................................... 1,225,000 1,278,594 North Clackamas Parks & Recreation District Recreational Facilities 5.700% 04/01/2013................................................................... 2,840,000 2,953,600
53 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - --------------------- --------------------- -- COLUMBIA MUNICIPAL BOND FUND, INC. -- ----------------------------------------
PRINCIPAL AMOUNT VALUE(1) ------------- --------------
OREGON REVENUE BONDS (CONTINUED) Northern Wasco County People's Utility District Electric 0.000% 02/01/2006................................................................... $ 610,000 $ 408,700 0.000% 02/01/2007................................................................... 585,000 364,163 0.000% 02/01/2008................................................................... 610,000 352,275 0.000% 02/01/2011................................................................... 500,000 233,125 Oregon Health, Housing, Educational & Cultural Facilities Authority Reed College Project Series A 5.300% 07/01/2011................................................................... 500,000 513,750 Oregon Housing Financial 5.800% 07/01/2009................................................................... 420,000 421,646 Oregon Housing & Community Services Department Housing Finance Assisted Insured Multi-Unit B 6.800% 07/01/2013................................................................... 8,270,000 8,786,875 Oregon Housing & Community Services Department Mortgage Single-Family Mortgage Program Series A 6.800% 07/01/2016................................................................... 2,125,000 2,279,063 Oregon Housing & Community Services Department Mortgage Single-Family Mortgage Program Series D 6.700% 07/01/2013................................................................... 1,000,000 1,058,750 Oregon Housing & Community Services Department Mortgage Single-Family Mortgage Program Series E 6.750% 07/01/2016................................................................... 2,705,000 2,863,919 Portland Hydroelectric Power 6.800% 10/01/2004................................................................... 465,000 469,338 Portland Parking Refunding 6.375% 10/01/2012................................................................... 1,700,000 1,782,875 Portland Water System 5.250% 08/01/2013................................................................... 2,000,000 2,042,500 5.000% 08/01/2017................................................................... 3,685,000 3,666,575 Prineville Sewer First Lien 6.500% 07/01/2004................................................................... 500,000 537,500 6.800% 07/01/2012................................................................... 1,050,000 1,168,125 Reedsport Water 7.000% 10/01/2014................................................................... 520,000 590,850 South Fork Water Board First Lien 5.450% 02/01/2014................................................................... 1,300,000 1,321,125 Tri-County Metropolitan Transportation District Refunding Series A 5.700% 08/01/2013................................................................... 3,000,000 3,097,500
PRINCIPAL AMOUNT VALUE(1) ------------- -------------- Washington County Unified Sewer Agency Unrefunded Series A 6.200% 10/01/2010................................................................... $ 420,520 $ 462,046 -------------- Total Oregon Revenue Bonds (Cost $56,794,517) .................................................................. 60,250,719 -------------- OREGON INSURED BONDS (35.4%) Central Oregon Community College District 5.800% 06/01/2007................................................................... 760,000 818,900 Chemeketa Community College District 5.950% 06/01/2016................................................................... 1,600,000 1,742,000 Chemeketa Community College District Series B 5.600% 06/01/2014................................................................... 1,105,000 1,182,350 Clackamas & Washington Counties School District #3JT 5.750% 06/01/2010................................................................... 590,000 649,737 Clackamas County Health Facility Authority Revenue Refunding Adventist Health A 6.350% 03/01/2009................................................................... 1,500,000 1,635,000 Clackamas County School District #115 Gladstone 6.150% 06/01/2014................................................................... 1,200,000 1,317,000 Clatsop County Administrative School District #10 5.875% 07/01/2012................................................................... 630,000 657,562 Crook County School District 4.900% 02/01/2009................................................................... 1,165,000 1,181,019 Deschutes & Jefferson Counties School District #2J Redmond Refunding 5.600% 06/01/2009................................................................... 1,000,000 1,051,250 Emerald Peoples Utilities District 7.200% 11/01/2006................................................................... 480,000 575,405 7.350% 11/01/2011................................................................... 2,000,000 2,527,500 Eugene Electric Utility Revenue Refunding 4.700% 08/01/2008................................................................... 1,225,000 1,251,031 Hood River County School District 5.650% 06/01/2008................................................................... 1,020,000 1,086,300 Josephine County School District #7 Grants Pass 5.700% 06/01/2013................................................................... 2,000,000 2,132,500 Klamath County 5.100% 06/01/2008................................................................... 1,015,000 1,083,512 5.150% 06/01/2009................................................................... 700,000 747,250 Lane County School District #19 Springfield 6.000% 10/15/2012................................................................... 740,000 838,050 6.000% 10/15/2014................................................................... 1,310,000 1,483,575
54 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - --------------------- --------------------- -- COLUMBIA MUNICIPAL BOND FUND, INC. -- ----------------------------------------
PRINCIPAL AMOUNT VALUE(1) ------------- --------------
OREGON INSURED BONDS (CONTINUED) Lane County School District #52 Bethel 6.250% 12/01/2007................................................................... $ 580,000 $ 665,550 6.400% 12/01/2009................................................................... 750,000 856,875 Lincoln County School District 6.000% 06/15/2006................................................................... 900,000 1,009,125 6.000% 06/15/2007................................................................... 1,855,000 2,091,512 6.000% 06/15/2008................................................................... 1,150,000 1,299,500 6.000% 06/15/2009................................................................... 2,465,000 2,785,450 5.600% 06/15/2010................................................................... 2,480,000 2,693,900 5.250% 06/15/2012................................................................... 3,815,000 3,972,369 Malheur County School District #26 Nyssa 5.750% 06/01/2015................................................................... 1,910,000 2,026,987 Marion & Linn County Elementary School District #77J Stayton 6.250% 07/01/2013................................................................... 1,260,000 1,404,900 Marion County School District #103C Woodburn Series B 0.000% 11/01/2006................................................................... 2,000,000 1,365,000 0.000% 11/01/2007................................................................... 2,000,000 1,300,000 0.000% 11/01/2009................................................................... 2,500,000 1,465,625 0.000% 11/01/2011................................................................... 2,010,000 1,037,662 Medford Hospital Facility Authority Revenue Gross-Rogue Valley Health Services 6.800% 12/01/2011................................................................... 1,820,000 1,983,800 Morrow County School District #1 6.000% 06/01/2006................................................................... 880,000 981,200 Multnomah County Educational Facilities University of Portland Project 5.000% 04/01/2018................................................................... 1,500,000 1,492,500 Multnomah County School District #3 Parkrose 5.400% 12/01/2005................................................................... 1,010,000 1,084,487 5.700% 12/01/2008................................................................... 1,330,000 1,436,400 5.700% 12/01/2009................................................................... 1,970,000 2,115,288 5.500% 12/01/2010................................................................... 895,000 947,581 5.500% 12/01/2011................................................................... 1,000,000 1,052,500 Northern Oregon Corrections 5.250% 09/15/2012................................................................... 1,000,000 1,037,500 5.300% 09/15/2013................................................................... 1,000,000 1,035,000 Ontario Oregon Catholic Health Holy Rosary Medical Center 5.500% 11/15/2012................................................................... 1,500,000 1,573,125 Oregon Health Sciences University Revenue Series A 0.000% 07/01/2009................................................................... 1,530,000 906,525 0.000% 07/01/2012................................................................... 1,315,000 642,706 0.000% 07/01/2014................................................................... 2,495,000 1,094,681 0.000% 07/01/2015................................................................... 4,325,000 1,789,469
PRINCIPAL AMOUNT VALUE(1) ------------- -------------- Oregon Health Sciences University Revenue Series B 4.875% 07/01/2007................................................................... $ 1,695,000 $ 1,767,038 Oregon Department of General Services Certificates Participation Series C 5.800% 03/01/2015................................................................... 840,000 875,700 Oregon Department of Administrative Services Certificates Participation Series A 5.375% 11/01/2004................................................................... 1,500,000 1,601,250 5.250% 05/01/2008................................................................... 4,950,000 5,240,813 5.300% 05/01/2008................................................................... 750,000 800,625 5.250% 11/01/2009................................................................... 2,460,000 2,579,925 5.700% 05/01/2015................................................................... 1,000,000 1,062,500 5.375% 11/01/2016................................................................... 4,360,000 4,474,450 Oregon Department of Administrative Services Certificates Participation Series B 5.500% 11/01/2011................................................................... 1,635,000 1,733,100 5.000% 11/01/2013................................................................... 1,000,000 1,000,000 5.000% 11/01/2014................................................................... 500,000 498,750 Oregon Department of Administrative Services Certificates Participation Series C 5.500% 05/01/2011................................................................... 2,000,000 2,115,000 5.750% 05/01/2017................................................................... 2,000,000 2,140,000 Oregon Health, Housing, Educational & Cultural Facilities Authority Lewis & Clark College 6.000% 10/01/2013................................................................... 965,000 1,054,263 Port of Portland Airport Revenue Portland International Airport Series 7-A 6.500% 07/01/2004................................................................... 500,000 541,875 6.750% 07/01/2015................................................................... 2,895,000 3,155,550 Port of Portland Airport Revenue Series 9-A 5.500% 07/01/2006................................................................... 500,000 527,500 Portland Arena Gas Tax Revenue 0.000% 06/01/2016................................................................... 1,100,000 385,000 0.000% 06/01/2017................................................................... 1,420,000 465,050 Portland Community College District 5.000% 07/01/2011................................................................... 2,000,000 2,030,000 Portland Gas Tax Revenue Series A 5.800% 06/01/2016................................................................... 1,625,000 1,720,469 Portland Sewer System Revenue Series A 5.000% 06/01/2009................................................................... 1,000,000 1,036,250 5.000% 06/01/2015................................................................... 5,500,000 5,520,625 Salem-Keizer School District #24J 5.400% 06/01/2006................................................................... 1,000,000 1,063,750 Salem Pedestrian Safety Improvements 5.400% 05/01/2009................................................................... 1,000,000 1,057,500 Salem Water & Sewer 6.000% 06/01/2005................................................................... 1,080,000 1,200,150
55 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - --------------------- --------------------- -- COLUMBIA MUNICIPAL BOND FUND, INC. -- ----------------------------------------
PRINCIPAL AMOUNT VALUE(1) ------------- --------------
OREGON INSURED BONDS (CONTINUED) Tillamook County 6.250% 01/01/2014................................................................... $ 960,000 $ 1,064,400 5.700% 01/15/2016................................................................... 700,000 744,625 Umatilla County School District #6R Umatilla 5.080% 06/15/2018................................................................... 1,455,000 1,453,181 Umatilla County School District #8R Hermiston 6.000% 12/01/2010................................................................... 695,000 758,419 Union Health District 5.750% 02/01/2010................................................................... 1,070,000 1,112,800 Washington County School District #13 5.350% 06/01/2011................................................................... 355,000 371,863 5.350% 06/01/2012................................................................... 440,000 459,250 5.400% 06/01/2013................................................................... 485,000 506,219 Washington County School District #48J Beaverton Series A 5.200% 12/01/2009................................................................... 1,740,000 1,827,000 Washington County School District #88J Sherwood 6.100% 06/01/2012................................................................... 1,000,000 1,101,250 Washington County Unified Sewer Agency Revenue 5.500% 10/01/2016................................................................... 1,500,000 1,569,375 Washington County Unified Sewer Agency Revenue Series A 0.000% 10/01/2003................................................................... 1,975,000 1,550,375 0.000% 10/01/2005................................................................... 5,230,000 3,745,988 0.000% 10/01/2007................................................................... 4,835,000 3,148,794 5.750% 10/01/2009................................................................... 3,350,000 3,752,000 5.400% 10/01/2012................................................................... 520,000 546,650 Washington County Unified Sewer Agency Unrefunded Series A 5.900% 10/01/2006................................................................... 1,050,913 1,149,436 Western Lane Hospital District Facility Authority Revenue Refunding Sisters St. Joseph Peace 5.625% 08/01/2007................................................................... 2,080,000 2,264,600 Yamhill County School District #29J Newberg 5.500% 06/01/2010................................................................... 1,405,000 1,477,006 6.100% 06/01/2011................................................................... 3,355,000 3,677,919 Yamhill County School District #40 6.000% 06/01/2009................................................................... 500,000 567,500 5.350% 06/01/2010................................................................... 500,000 529,375 5.600% 06/01/2016................................................................... 500,000 526,250 -------------- Total Oregon Insured Bonds (Cost $136,123,662) ................................................................. 144,658,566 --------------
PRINCIPAL AMOUNT VALUE(1) ------------- -------------- OREGON PRE-REFUNDED BONDS (9.1%) Clackamas & Washington Counties School District #3JT West Linn-Wilsonville 5.875% 08/01/2009................................................................... $ 1,000,000 $ 1,066,250 Clackamas County Hospital Facility Authority Elderly Housing Willamette View Income Project 7.000% 11/15/2011................................................................... 470,000 525,225 Clackamas County School District #1 6.250% 07/01/2002................................................................... 925,000 987,437 6.300% 07/01/2003................................................................... 700,000 748,125 6.500% 07/01/2004................................................................... 1,235,000 1,327,625 6.500% 07/01/2005................................................................... 1,355,000 1,456,625 6.500% 07/01/2006................................................................... 1,485,000 1,596,375 Lane County School District #19 Springfield 6.150% 10/15/2009................................................................... 1,500,000 1,672,500 Multnomah County Educational Facilities University Portland Project 6.000% 04/01/2014................................................................... 1,375,000 1,507,344 Oregon City Sewer 6.500% 10/01/2007................................................................... 500,000 561,250 Oregon Board of Higher Education Series A 6.350% 08/01/2014................................................................... 1,535,000 1,724,956 Oregon Housing, Educational & Cultural Facilities Authority Reed College Project Series A 6.350% 07/01/2002................................................................... 320,000 348,000 6.400% 07/01/2003................................................................... 280,000 305,200 Portland Airport Way Urban Renewal & Redevelopment Tax Increment Series A 7.300% 06/01/2010................................................................... 1,400,000 1,505,000 Portland Community College District Series A 6.000% 07/01/2012................................................................... 1,500,000 1,606,875 Portland Sewer System Revenue Series A 6.050% 06/01/2009................................................................... 535,000 589,169 6.200% 06/01/2012................................................................... 5,540,000 6,149,400 6.250% 06/01/2015................................................................... 2,000,000 2,225,000 Washington County Unified Sewer Agency Series A 5.900% 10/01/2006................................................................... 2,679,087 2,926,903 Washington County Unified Sewer Agency Revenue Series A 6.125% 10/01/2012................................................................... 4,510,000 4,989,187 Washington County Unified Sewer Agency Series A 6.200% 10/01/2010................................................................... 3,064,480 3,393,912 -------------- Total Oregon Pre-Refunded Bonds (Cost $34,060,410) .................................................................. 37,212,358 --------------
56 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - --------------------- --------------------- -- COLUMBIA MUNICIPAL BOND FUND, INC. -- ----------------------------------------
PRINCIPAL AMOUNT VALUE(1) ------------- -------------- OREGON OTHER BONDS (2.6%) Grants Pass Urban Renewal Agency Tax Increment 6.125% 08/01/2012................................................................... $ 755,000 $ 781,425 Hood River Urban Renewal Agency Revenue 6.250% 12/15/2011................................................................... 1,250,000 1,360,937 Lane County School District #4J Eugene Certificates Participation 6.900% 10/01/2000................................................................... 500,000 536,250 Lebanon Special Obligation Revenue Refunding Lease Water 5.400% 10/01/2013................................................................... 755,000 770,100 Medford Urban Renewal Agency Tax Revenue 5.875% 09/01/2010................................................................... 500,000 527,500 Newberg Certificates Participation 5.900% 12/01/1998................................................................... 365,000 370,876 6.000% 12/01/1999................................................................... 390,000 403,163 6.100% 12/01/2000................................................................... 410,000 430,500 6.200% 12/01/2001................................................................... 410,000 436,650 Portland Building Refunding Series A 4.750% 04/01/2007................................................................... 2,000,000 2,030,000 Portland Airport Way Urban Renewal & Redevelopment Tax Increment Series C 5.900% 06/01/2006................................................................... 860,000 921,275 Portland Urban Renewal & Redevelopment Refunding, Downtown Waterfront Series L 6.400% 06/01/2008................................................................... 2,085,000 2,257,013 -------------- Oregon Other Bonds (2.6%) (Cost $10,109,353) .................................................................. 10,825,689 -------------- OTHER BONDS (7.2%) Puerto Rico Commonwealth 6.250% 07/01/2008................................................................... 1,000,000 1,155,000 Puerto Rico Commonwealth Public Improvements 6.250% 07/01/2009................................................................... 3,000,000 3,453,750 6.250% 07/01/2013................................................................... 1,000,000 1,170,000 Puerto Rico Commonwealth Aqueduct & Sewer Authority 5.200% 07/01/2008................................................................... 1,000,000 1,066,250 Puerto Rico Commonwealth Aqueduct & Sewer Authority Revenue Series A 9.000% 07/01/2009................................................................... 5,830,000 7,447,825 Puerto Rico Commonwealth Infrastructure Financing Authority 5.000% 07/01/2013................................................................... 1,750,000 1,760,937 Puerto Rico Commonwealth Public Buildings Authority 5.000% 07/01/2013................................................................... 3,130,000 3,157,387 PRINCIPAL AMOUNT VALUE(1) ------------- -------------- Puerto Rico Electric Power Authority 5.000% 07/01/2010................................................................... $ 2,425,000 $ 2,494,719 Puerto Rico Housing Finance Corp. Single Family Mortgage Revenue Portfolio 1 Series B 7.500% 10/15/2012................................................................... 1,040,000 1,098,500 Puerto Rico Housing Finance Corp. Single Family Mortgage Revenue Portfolio 1 Series C 6.750% 10/15/2013................................................................... 710,000 757,925 Puerto Rico Housing Finance Corp. Multi Family Mortgage Revenue Portfolio A-1 7.500% 04/01/2022................................................................... 1,680,000 1,772,400 Puerto Rico Industrial, Medical & Environmental Pollution Control Facilities Financing Authority Revenue FHA Insured Mortgage Dr. Pila Hospital Project-A 7.700% 08/01/2008................................................................... 1,975,000 2,051,294 Puerto Rico Housing Bank & Finance Agency Single Family Mortgage Revenue FHA Homeownership 5th Portfolio 7.500% 12/01/2015................................................................... 610,000 658,038 Virgin Islands Public Finance Authority Revenue Unrefunded Balance Series A 7.300% 10/01/2018................................................................... 1,185,000 1,531,613 -------------- Total Other Bonds (Cost $27,865,999) .................................................................. 29,575,638 -------------- Total investments, excluding temporary cash investment (Cost $373,386,159) ................................................................. 397,449,529 -------------- TAX-EXEMPT MONEY MARKET INVESTMENT (2.3%) SEI Tax Exempt Trust (Cost $9,250,961) ................................................................... 9,250,961 9,250,961 -------------- TOTAL INVESTMENTS (99.4%) (Cost $382,637,120)...................................................................... 406,700,490 RECEIVABLE LESS LIABILITIES (0.6%)........................................................ 2,447,685 -------------- NET ASSETS (100.0%)....................................................................... $ 409,148,175 -------------- --------------
(1) See Note 1 of Notes to Financial Statements. The accompanying notes are an integral part of the financial statements. 57 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ------------------------ ------------------------ -- COLUMBIA HIGH YIELD FUND, INC. -- ------------------------------------
PRINCIPAL December 31, 1997 AMOUNT VALUE(1) ------------- -------------- CORPORATE BONDS (89.5%) INDUSTRIAL (3.9%) BUSINESS SERVICES (3.9%) Iron Mountain, Inc. Senior Subordinated Notes 10.125% 10/01/2006................................................................. $ 750,000 $ 825,000 Pierce Leahy Corp. Senior Subordinated Notes 11.125% 07/15/2006................................................................. 625,000 706,250 -------------- Total Industrial ..................................................................... 1,531,250 -------------- BASIC INDUSTRY (4.0%) CHEMICALS (2.0%) ICO, Inc. Series B Senior Notes 10.375% 06/01/2007................................................................. 750,000 804,375 METALS/MINING (2.0%) Ryerson Tull, Inc. Notes 8.500% 07/15/2001................................................................. 750,000 776,250 -------------- Total Basic Industry ................................................................. 1,580,625 -------------- CONSUMER RELATED (17.5%) HOTEL/GAMING (4.8%) HMH Properties, Inc. Series B Senior Secured Notes 9.500% 05/15/2005................................................................. 600,000 639,000 Rio Hotel & Casino, Inc. Senior Subordinated Notes 9.500% 04/15/2007................................................................. 450,000 477,000 Station Casinos, Inc. Senior Subordinated Notes 9.625% 06/01/2003................................................................. 740,000 764,050 -------------- 1,880,050 -------------- HEALTHCARE (7.0%) Abbey Healthcare Group, Inc. Senior Subordinated Notes 9.500% 11/01/2002................................................................. 850,000 892,500 Healthsouth Corp. Senior Subordinated Notes 9.500% 04/01/2001................................................................. 300,000 315,975 Quorum Health Group, Inc. Senior Subordinated Notes 8.750% 11/01/2005................................................................. 750,000 774,375 PRINCIPAL AMOUNT VALUE(1) ------------- -------------- Tenet Healthcare Corp. Senior Subordinated Notes 10.125% 03/01/2005................................................................. $ 700,000 $ 764,750 -------------- 2,747,600 -------------- OTHER (5.7%) Maxim Group, Inc. (144A) Senior Subordinated Notes 9.250% 10/15/2007................................................................. 900,000 891,000 Westpoint Stevens, Inc. Senior Subordinated Debentures 9.375% 12/15/2005................................................................. 800,000 840,000 Worldtex, Inc. (144A) Senior Notes 9.625% 12/15/2007................................................................. 500,000 512,500 -------------- 2,243,500 -------------- Total Consumer Related ............................................................... 6,871,150 -------------- ENERGY (7.2%) Gulf Canada Resources Ltd. Subordinated Debentures 9.625% 07/01/2005................................................................. 750,000 815,625 Kelley Oil & Gas Corp. Series B Senior Subordinated Notes 10.375% 10/15/2006................................................................. 600,000 640,500 Nuevo Energy Co. Senior Subordinated Notes 9.500% 04/15/2006................................................................. 900,000 951,750 Santa Fe Energy Resource, Inc. Senior Subordinated Debentures 11.000% 05/15/2004................................................................. 400,000 434,000 -------------- Total Energy ......................................................................... 2,841,875 -------------- HOUSING RELATED (3.4%) USG Corp. Series B Senior Notes 9.250% 09/15/2001................................................................. 500,000 535,000 Webb (Del E.) Corp. Senior Subordinated Notes 9.750% 01/15/2008................................................................. 750,000 780,000 -------------- Total Housing Related ................................................................ 1,315,000 -------------- MANUFACTURING (9.5%) Hayes Wheels International, Inc. Series B Senior Subordinated Notes 9.125% 07/15/2007................................................................. 800,000 828,000 Polymer Group, Inc. Series B Senior Subordinated Notes 9.000% 07/01/2007................................................................. 500,000 500,000
58 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ------------------------ ------------------------ -- COLUMBIA HIGH YIELD FUND, INC. -- ------------------------------------
PRINCIPAL AMOUNT VALUE(1) ------------- --------------
CORPORATE BONDS (CONTINUED) Silgan Holdings, Inc. Senior Subordinated Debentures 9.000% 06/01/2009................................................................. $ 750,000 $ 766,875 Titan Wheel International, Inc. Senior Subordinated Notes 8.750% 04/01/2007................................................................. 800,000 836,000 Tracor, Inc. Senior Subordinated Notes 8.500% 03/01/2007................................................................. 800,000 808,000 -------------- Total Manufacturing .................................................................. 3,738,875 -------------- MEDIA (21.7%) Cinemark USA, Inc. Series B Senior Subordinated Notes 9.625% 08/01/2008................................................................. 750,000 774,375 Heritage Media Corp. Senior Subordinated Notes 8.750% 02/15/2006................................................................. 750,000 797,812 Hollinger International Publishing, Inc. Senior Notes 8.625% 03/15/2005................................................................. 800,000 828,000 Jacor Communications Co. (144A) Senior Subordinated Notes 8.750% 06/15/2007................................................................. 750,000 768,750 Jones Intercable, Inc. Senior Notes 8.875% 04/01/2007................................................................. 700,000 731,500 Lamar Advertising Co. Senior Subordinated Notes 9.625% 12/01/2006................................................................. 900,000 969,750 Lenfest Communications, Inc. Senior Secured Notes 8.375% 11/01/2005................................................................. 750,000 770,625 Regal Cinemas, Inc. (144A) Senior Subordinated Notes 8.500% 10/01/2007................................................................. 750,000 755,625 SFX Broadcasting, Inc. Series B Senior Subordinated Notes 10.750% 05/15/2006................................................................. 750,000 823,125 Sinclair Broadcast Group, Inc. Senior Subordinated Notes 8.750% 12/15/2007................................................................. 750,000 748,125 Young Broadcasting, Inc. Gtd. Senior Subordinated Notes 11.750% 11/15/2004................................................................. 500,000 556,250 -------------- Total Media .......................................................................... 8,523,937 --------------
PRINCIPAL AMOUNT VALUE(1) ------------- -------------- RETAIL (5.8%) OTHER (5.8%) Ethan Allen, Inc. Senior Notes 8.750% 03/15/2001................................................................. $ 750,000 $ 766,875 Specialty Retailers, Inc. Series B Senior Notes 8.500% 07/15/2005................................................................. 750,000 761,250 Zale Corp. (144A) Senior Notes 8.500% 10/01/2007................................................................. 750,000 746,250 -------------- Total Retail ......................................................................... 2,274,375 -------------- TRANSPORTATION (3.5%) OTHER (3.5%) Allied Holdings, Inc. Series B Senior Notes 8.625% 10/01/2007................................................................. 500,000 507,500 Teekay Shipping Corp. Gtd. 1st Pfd. Ship. Mtg. Notes 8.320% 02/01/2008................................................................. 850,000 867,000 -------------- Total Transportation ................................................................. 1,374,500 -------------- UTILITY (8.7%) ELECTRICS (4.5%) AES Corp. Senior Subordinated Notes 10.250% 07/15/2006................................................................. 800,000 864,000 California Energy Co., Inc. Senior Secured Notes 9.875% 06/30/2003................................................................. 850,000 921,885 -------------- 1,785,885 -------------- TELECOMMUNICATIONS (4.2%) Paging Network, Inc. Senior Subordinated Notes 10.000% 10/15/2008................................................................. 750,000 780,000 Worldcom, Inc. Senior Notes 8.875% 01/15/2006................................................................. 799,910 860,639 -------------- 1,640,639 -------------- Total Utilities ...................................................................... 3,426,524 -------------- YANKEE (4.3%) Argentina Republic Unsubordinated Global Bonds 11.000% 10/09/2006................................................................. 750,000 807,150
59 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ------------------------ ------------------------ -- COLUMBIA HIGH YIELD FUND, INC. -- ------------------------------------
PRINCIPAL AMOUNT VALUE(1) ------------- --------------
CORPORATE BONDS (CONTINUED) Mexico-United Mexican States Global Bonds 11.375% 09/15/2016................................................................. $ 750,000 $ 862,500 -------------- Total Yankee ......................................................................... 1,669,650 -------------- Total Corporate Bonds (Cost $34,017,097) .................................................................. 35,147,761 -------------- REPURCHASE AGREEMENTS (8.9%) Goldman Sachs Corp. 6.337% dated 12/31/1997, due 01/02/1998 in the amount of $2,760,481. Collateralized by U.S. Treasury Notes 5.875% due 08/31/1999................................................................ 2,759,523 2,759,523 J.P. Morgan Securities, Inc. 6.521% dated 12/31/1997, due 01/02/1998 in the amount of $750,268. Collateralized by U.S. Treasury Notes 3.625% to 7.500% due 08/31/2000 to 02/15/2005......................................................... 750,000 750,000 -------------- Total Repurchase Agreements (Cost $3,509,523) ................................................................... 3,509,523 -------------- TOTAL INVESTMENTS (98.4%) (Cost $37,526,620)....................................................................... 38,657,284 RECEIVABLES LESS LIABILITIES (1.6%)....................................................... 621,125 -------------- NET ASSETS (100.0%)....................................................................... $ 39,278,409 -------------- --------------
(1) See Note 1 of Notes to Financial Statements. The accompanying notes are an integral part of the financial statements. 60 STATEMENTS OF ASSETS AND LIABILITIES -----------------------------------------------------------------
COLUMBIA COLUMBIA COLUMBIA COLUMBIA COMMON STOCK GROWTH INTERNATIONAL STOCK SPECIAL December 31, 1997 FUND, INC. FUND, INC. FUND, INC. FUND, INC. ------------- --------------- ------------------- --------------- ASSETS: Investments at identified cost............. $591,083,706 $ 998,562,165 $115,352,903 $ 1,080,385,133 - --------------------------------------------- ------------- --------------- ------------------- --------------- Investments at value (Notes 1 and 2)....... $728,952,817 $ 1,301,830,187 $130,260,028 $ 1,218,584,838 Temporary cash investments, at cost (Note 1)........................................ 94,603,062 27,749,208 17,066,118 92,623,788 Cash....................................... 49,992 Cash denominated in foreign currencies (cost $30,118) (Note 1)................... 28,481 Receivable for: Interest................................. 380,104 95,041 71,382 539,653 Dividends................................ 991,982 1,157,953 148,571 812,476 Investments sold......................... 179,769 4,642,953 140,743 Capital stock sold....................... 12,830,283 1,098,716 109,439 1,600,359 Forward foreign currency exchange contract held, at market (Note 1)....... 26,154,849 ------------- --------------- ------------------- --------------- Total assets............................... 837,938,017 1,336,574,058 173,888,860 1,314,301,857 ------------- --------------- ------------------- --------------- LIABILITIES: Payable for: Capital stock redeemed................... 21,686,397 1,612,360 345,451 54,827,406 Dividends and distributions.............. 2,537,818 9,010,622 985,568 5,565,501 Investments purchased.................... 29,137,562 2,906,000 Investment management fee (Note 4)....... 399,727 638,746 125,499 954,989 Accrued expenses......................... 270,694 394,641 126,631 330,164 Forward foreign currency exchange contracts held (Note 1)................. 26,025,176 ------------- --------------- ------------------- --------------- Total liabilities.......................... 54,032,198 11,656,369 27,608,325 64,584,060 ------------- --------------- ------------------- --------------- NET ASSETS APPLICABLE TO OUTSTANDING SHARES...................................... $783,905,819 $ 1,324,917,689 $146,280,535 $ 1,249,717,797 ------------- --------------- ------------------- --------------- ------------- --------------- ------------------- --------------- Net assets consist of: Undistributed net investment income........ $ 1,537,363 $ 1,999,579 $ 360,073 Unrealized appreciation on: Investments.............................. 137,869,111 303,268,022 $ 14,907,125 138,199,705 Translation of assets and liabilities in foreign currencies...................... 124,446 Undistributed net realized gain (loss) from: Investments.............................. 798,088 1,714,128 (30,287) (812,034) Foreign currency transactions............ (129,673) Capital shares (Note 3).................... 385,808 616,718 Capital paid in (Note 3)................... 643,701,257 1,017,550,152 131,408,924 1,111,353,335 ------------- --------------- ------------------- --------------- $783,905,819 $ 1,324,917,689 $146,280,535 $ 1,249,717,797 ------------- --------------- ------------------- --------------- ------------- --------------- ------------------- --------------- SHARES OF CAPITAL STOCK OUTSTANDING (NOTE 3).......................................... 35,603,323 38,580,838 10,674,460 61,671,768 ------------- --------------- ------------------- --------------- ------------- --------------- ------------------- --------------- NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE (1)......................... $ 22.02 $ 34.34 $ 13.70 $ 20.26 ------------- --------------- ------------------- --------------- ------------- --------------- ------------------- ---------------
(1) The net asset value per share is computed by dividing net assets applicable to outstanding shares by shares of capital stock outstanding. The accompanying notes are an integral part of the financial statements. 61 STATEMENTS OF ASSETS AND LIABILITIES -----------------------------------------------------------------
COLUMBIA COLUMBIA REAL COLUMBIA COLUMBIA SMALL CAP ESTATE EQUITY BALANCED DAILY INCOME December 31, 1997 FUND, INC. FUND, INC. FUND, INC. COMPANY ------------ ------------- ------------- --------------- ASSETS: Investments at identified cost............. $ 83,953,702 $113,044,943 $ 687,367,178 $ 1,173,657,688 - --------------------------------------------- ------------ ------------- ------------- --------------- Investments at value (Notes 1 and 2)....... $ 93,338,061 $140,161,757 $ 781,687,536 $ 1,173,657,688 Temporary cash investments, at cost (Note 1)........................................ 3,622,273 11,040,866 18,639,214 Cash....................................... 300,000 Receivable for: Interest................................. 34,328 33,119 4,943,205 370,359 Dividends................................ 5,387 735,392 473,178 Investments sold......................... 1,824,671 8,078,540 Capital stock sold....................... 570,168 1,532,140 7,114,096 12,123,502 ------------ ------------- ------------- --------------- Total assets............................... 97,570,217 155,327,945 820,935,769 1,186,451,549 ------------ ------------- ------------- --------------- LIABILITIES: Payable for: Capital stock redeemed................... 231,990 931,665 1,852,679 16,588,968 Dividends and distributions.............. 442,455 663,247 361,650 Investments purchased.................... 321,655 2,016,928 25,767,691 Investment management fee (Note 4)....... 80,499 91,680 333,276 445,481 Accrued expenses......................... 62,309 69,985 242,217 321,532 ------------ ------------- ------------- --------------- Total liabilities.......................... 1,138,908 3,773,505 28,557,513 17,355,981 ------------ ------------- ------------- --------------- NET ASSETS APPLICABLE TO OUTSTANDING SHARES...................................... $ 96,431,309 $151,554,440 $ 792,378,256 $ 1,169,095,568 ------------ ------------- ------------- --------------- ------------ ------------- ------------- --------------- Net assets consist of: Undistributed net investment income........ $ 758,037 Unrealized appreciation on investments..... $ 9,384,359 $ 27,116,814 94,320,358 Undistributed net realized gain (loss) from investments............................... (47,218) (1,863) 902,790 Capital shares (Note 3).................... $ 1,169,096 Capital paid in (Note 3)................... 87,094,168 124,439,489 696,397,071 1,167,926,472 ------------ ------------- ------------- --------------- $ 96,431,309 $151,554,440 $ 792,378,256 $ 1,169,095,568 ------------ ------------- ------------- --------------- ------------ ------------- ------------- --------------- SHARES OF CAPITAL STOCK OUTSTANDING (NOTE 3).......................................... 5,792,970 8,062,906 36,999,621 1,169,095,568 ------------ ------------- ------------- --------------- ------------ ------------- ------------- --------------- NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE (1)......................... $ 16.65 $ 18.80 $ 21.42 $ 1.00 ------------ ------------- ------------- --------------- ------------ ------------- ------------- ---------------
(1) The net asset value per share is computed by dividing net assets applicable to outstanding shares by shares of capital stock outstanding. The accompanying notes are an integral part of the financial statements. 62 STATEMENTS OF ASSETS AND LIABILITIES -----------------------------------------------------------------
COLUMBIA U.S. COLUMBIA FIXED COLUMBIA COLUMBIA GOVERNMENT SECURITIES INCOME SECURITIES MUNICIPAL BOND HIGH YIELD December 31, 1997 FUND, INC. FUND, INC. FUND, INC. FUND, INC. --------------------- ----------------- -------------- ------------ ASSETS: Investments at identified cost............. $37,019,300 $352,106,732 $373,386,159 $ 34,017,097 - --------------------------------------------- --------------------- ----------------- -------------- ------------ Investments at value (Notes 1 and 2)....... $37,110,250 $361,706,626 $397,449,529 $ 35,147,761 Temporary cash investments, at cost (Note 1)........................................ 489,660 16,756,264 9,250,961 3,509,523 Receivable for: Interest................................. 594,173 4,146,142 5,150,997 845,880 Investments sold......................... 1,734,615 Capital stock sold....................... 2,744 587,519 711,513 52,553 --------------------- ----------------- -------------- ------------ Total assets............................... 38,196,827 384,931,166 412,563,000 39,555,717 --------------------- ----------------- -------------- ------------ LIABILITIES: Payable for: Capital stock redeemed................... 296,055 258,822 194,689 25,561 Dividends and distributions.............. 13,147 678,152 942,554 203,813 Investments purchased.................... 2,065,838 2,037,575 Investment management fee (Note 4)....... 16,372 161,421 172,765 3,517 Accrued expenses......................... 34,578 434,179 67,242 44,417 --------------------- ----------------- -------------- ------------ Total liabilities.......................... 360,152 3,598,412 3,414,825 277,308 --------------------- ----------------- -------------- ------------ NET ASSETS APPLICABLE TO OUTSTANDING SHARES...................................... $37,836,675 $381,332,754 $409,148,175 $ 39,278,409 --------------------- ----------------- -------------- ------------ --------------------- ----------------- -------------- ------------ Net assets consist of: Unrealized appreciation on investments..... $ 90,950 $ 9,599,894 $ 24,063,370 $ 1,130,664 Undistributed net realized gain (loss) from investments............................... (249,278) 8,080 301,769 30,713 Capital shares (Note 3).................... 45,619 284,274 328,202 Capital paid in (Note 3)................... 37,949,384 371,440,506 384,454,834 38,117,032 --------------------- ----------------- -------------- ------------ $37,836,675 $381,332,754 $409,148,175 $ 39,278,409 --------------------- ----------------- -------------- ------------ --------------------- ----------------- -------------- ------------ SHARES OF CAPITAL STOCK OUTSTANDING (NOTE 3).......................................... 4,561,855 28,427,440 32,820,166 3,913,232 --------------------- ----------------- -------------- ------------ --------------------- ----------------- -------------- ------------ NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE (1)......................... $ 8.29 $ 13.41 $ 12.47 $ 10.04 --------------------- ----------------- -------------- ------------ --------------------- ----------------- -------------- ------------
(1) The net asset value per share is computed by dividing net assets applicable to outstanding shares by shares of capital stock outstanding. The accompanying notes are an integral part of the financial statements. 63 STATEMENTS OF OPERATIONS -----------------------------------------------------------------
COLUMBIA COLUMBIA COLUMBIA COLUMBIA COMMON STOCK GROWTH INTERNATIONAL STOCK SPECIAL Year Ended December 31, 1997 FUND, INC. FUND, INC. FUND, INC. FUND, INC. ------------- ------------- ------------------- ------------- INVESTMENT INCOME: Income: Interest................................. $ 3,048,343 $ 1,820,088 $ 633,045 $ 5,470,977 Dividends................................ 11,603,708 13,482,283 2,328,263 9,434,285 Foreign taxes withheld (net of reclaims)............................... (276,894) ------------- ------------- ------------------- ------------- Total income........................... 14,652,051 15,302,371 2,684,414 14,905,262 ------------- ------------- ------------------- ------------- Expenses: Investment management fees (Note 4)...... 4,158,273 7,019,161 1,504,787 12,373,140 Shareholder servicing costs (Note 4)..... 802,650 1,036,576 401,177 1,402,637 Reports to shareholders.................. 121,540 273,690 89,060 297,099 Accounting expense....................... 35,794 38,348 89,372 45,504 Financial information and subscriptions........................... 9,802 18,422 19,979 26,041 Custodian fees........................... 27,901 49,225 147,332 58,659 Bank transaction and checking fees....... 20,985 33,934 47,326 50,531 Registration fees........................ 80,003 84,219 38,396 55,075 Legal, insurance and auditing fees....... 36,992 47,281 34,161 54,489 Other.................................... 3,228 8,839 35,838 10,314 ------------- ------------- ------------------- ------------- Total expenses......................... 5,297,168 8,609,695 2,407,428 14,373,489 ------------- ------------- ------------------- ------------- Net investment income (Note 1)............. 9,354,883 6,692,676 276,986 531,773 ------------- ------------- ------------------- ------------- REALIZED GAIN (LOSS) AND UNREALIZED APPRECIATION (DEPRECIATION) FROM INVESTMENT AND FOREIGN CURRENCY TRANSACTIONS: Net realized gain (loss) from: Investments (Note 2)(1).................. 61,630,849 150,238,079 17,347,526 122,678,842 Foreign currency transactions (Note 1)... (286,335) ------------- ------------- ------------------- ------------- Net realized gain...................... 61,630,849 150,238,079 17,061,191 122,678,842 ------------- ------------- ------------------- ------------- Net unrealized appreciation (depreciation) on: Investments (Note 1)..................... 76,981,002 122,000,869 (1,735,993) 49,916,627 Translation of assets and liabilities in foreign currencies (Note 1)............. (67,221) ------------- ------------- ------------------- ------------- Net unrealized appreciation (depreciation) during the period...... 76,981,002 122,000,869 (1,803,214) 49,916,627 ------------- ------------- ------------------- ------------- Net gain on investment and foreign currency transactions (Note 1)..................... 138,611,851 272,238,948 15,257,977 172,595,469 ------------- ------------- ------------------- ------------- Net increase in net assets resulting from operations................................ $147,966,734 $ 278,931,624 $15,534,963 $ 173,127,242 ------------- ------------- ------------------- ------------- ------------- ------------- ------------------- -------------
(1) The net realized gain for CSF includes $7,023,101 loss from affiliated issuers. (Note 1) The accompanying notes are an integral part of the financial statements. 64 STATEMENTS OF OPERATIONS -----------------------------------------------------------------
COLUMBIA COLUMBIA COLUMBIA COLUMBIA SMALL CAP REAL ESTATE EQUITY BALANCED DAILY INCOME Year Ended December 31, 1997 FUND, INC. FUND, INC. FUND, INC. COMPANY -------------- ------------------ ------------- ------------ INVESTMENT INCOME: Income: Interest................................. $ 267,417 $ 522,739 $ 27,456,656 $50,578,946 Dividends................................ 87,990 6,230,108 6,696,506 -------------- ------------------ ------------- ------------ Total income........................... 355,407 6,752,847 34,153,162 50,578,946 -------------- ------------------ ------------- ------------ Expenses: Investment management fees (Note 4)...... 547,892 864,343 3,826,628 4,296,685 Shareholder servicing costs (Note 4)..... 84,315 147,702 908,682 785,663 Reports to shareholders.................. 22,892 36,581 158,095 194,528 Accounting expense....................... 30,148 28,628 43,071 44,583 Financial information and subscriptions........................... 981 2,444 22,155 13,392 Custodian fees........................... 2,305 4,733 30,526 35,947 Bank transaction and checking fees....... 19,580 10,591 32,640 100,680 Registration fees........................ 48,501 57,476 53,865 138,174 Legal, insurance and auditing fees....... 19,033 20,368 40,600 41,730 Other.................................... 23,345 1,603 14,547 12,298 -------------- ------------------ ------------- ------------ Total expenses......................... 798,992 1,174,469 5,130,809 5,663,680 -------------- ------------------ ------------- ------------ Net investment income (loss) (Note 1)...... (443,585) 5,578,378 29,022,353 44,915,266 -------------- ------------------ ------------- ------------ REALIZED GAIN AND UNREALIZED APPRECIATION FROM INVESTMENT TRANSACTIONS: Net realized gain from investments (Note 2)........................................ 4,931,098 3,597,873 62,144,958 Net unrealized appreciation on investments during the period (Note 1)................ 7,895,606 16,211,982 38,270,990 -------------- ------------------ ------------- Net gain on investments (Note 1)........... 12,826,704 19,809,855 100,415,948 -------------- ------------------ ------------- ------------ Net increase in net assets resulting from operations................................ $12,383,119 $25,388,233 $ 129,438,301 $44,915,266 -------------- ------------------ ------------- ------------ -------------- ------------------ ------------- ------------
The accompanying notes are an integral part of the financial statements. 65 STATEMENTS OF OPERATIONS -----------------------------------------------------------------
COLUMBIA U.S. COLUMBIA FIXED COLUMBIA COLUMBIA GOVERNMENT SECURITIES INCOME SECURITIES MUNICIPAL BOND HIGH YIELD Year Ended December 31, 1997 FUND, INC. FUND, INC. FUND, INC. FUND, INC. --------------------- ----------------- -------------- ----------- INVESTMENT INCOME: Income: Interest................................. $2,284,819 $25,828,885 $21,295,777 $3,184,666 ----------- ----------------- -------------- ----------- Total income........................... 2,284,819 25,828,885 21,295,777 3,184,666 ----------- ----------------- -------------- ----------- Expenses: Investment management fees (Note 4)...... 194,230 1,821,809 1,952,213 211,632 Shareholder servicing costs (Note 4)..... 59,553 315,560 124,730 43,233 Reports to shareholders.................. 12,689 80,510 25,942 11,708 Accounting expense....................... 28,508 37,923 29,953 34,145 Financial information and subscriptions........................... 1,051 15,912 37,910 3,564 Custodian fees........................... 1,530 14,491 15,412 1,388 Bank transaction and checking fees....... 2,345 24,208 4,572 3,740 Registration fees........................ 16,104 38,435 15,190 27,510 Legal, insurance and auditing fees....... 22,084 37,787 34,199 20,525 Other.................................... 673 4,224 8,930 358 ----------- ----------------- -------------- ----------- 338,767 2,390,859 2,249,051 357,803 Expenses reimbursed by investment advisor (1)..................................... (5,959) ----------- ----------------- -------------- ----------- Total expenses......................... 338,767 2,390,859 2,249,051 351,844 ----------- ----------------- -------------- ----------- Net investment income (Note 1)............. 1,946,052 23,438,026 19,046,726 2,832,822 ----------- ----------------- -------------- ----------- REALIZED GAIN AND UNREALIZED APPRECIATION FROM INVESTMENT TRANSACTIONS: Net realized gain from investments (Note 2)........................................ 147,024 2,758,117 2,429,586 1,148,575 Net unrealized appreciation on investments during the period (Note 1)................ 63,763 7,594,450 10,155,954 279,884 ----------- ----------------- -------------- ----------- Net gain on investments (Note 1)........... 210,787 10,352,567 12,585,540 1,428,459 ----------- ----------------- -------------- ----------- Net increase in net assets resulting from operations................................ $2,156,839 $33,790,593 $31,632,266 $4,261,281 ----------- ----------------- -------------- ----------- ----------- ----------------- -------------- ----------- (1) The Advisor has voluntarily agreed to assume the ordinary expenses of the Fund to the extent that these expenses, together with the Fund's advisory fee, exceed 1% of the Fund's average net assets.
The accompanying notes are an integral part of the financial statements. 66 STATEMENTS OF CHANGES IN NET ASSETS -----------------------------------------------------------------
COLUMBIA COLUMBIA COLUMBIA COMMON STOCK GROWTH INTERNATIONAL STOCK Years Ended December 31, FUND, INC. FUND, INC. FUND, INC. --------------------------- ------------------------------- --------------------------- 1997 1996 1997 1996 1997 1996 ------------ ------------ -------------- -------------- ------------ ------------ INCREASE IN NET ASSETS: Operations: Net investment income........ $ 9,354,883 $ 5,885,201 $ 6,692,676 $ 6,027,740 $ 276,986 $ 254,666 Net realized gain (loss) from: Investments (Note 2)....... 61,630,849 70,666,274 150,238,079 154,006,111 17,347,526 9,808,805 Foreign currency transactions (Note 1)..... (286,335) 1,454,573 Change in net unrealized appreciation (depreciation) on: Investments................ 76,981,002 8,532,253 122,000,869 21,295,845 (1,735,993) 5,676,201 Translation of assets and liabilities in foreign currencies (Note 1)....... (67,221) 185,947 ------------ ------------ -------------- -------------- ------------ ------------ Net increase in net assets resulting from operations... 147,966,734 85,083,728 278,931,624 181,329,696 15,534,963 17,380,192 Distributions to shareholders: From net investment income... (8,468,207) (5,169,680) (5,838,423) (5,089,302) (254,666) In excess of net investment income...................... (24,695)* (1,646,464)* From net realized gain from investment and foreign currency transactions....... (61,141,619) (70,666,274) (148,364,649) (154,006,111) (16,691,558) (9,422,995) In excess of net realized gain from investment transactions................ (97,665)* (469,156)* Capital share transactions, net (Note 3)...................... 168,789,109 169,111,664 136,089,618 193,603,540 21,927,539 18,580,064 ------------ ------------ -------------- -------------- ------------ ------------ Net increase in net assets... 247,146,017 178,237,078 260,818,170 215,368,667 20,770,944 24,636,131 NET ASSETS: Beginning of period............ 536,759,802 358,522,724 1,064,099,519 848,730,852 125,509,591 100,873,460 ------------ ------------ -------------- -------------- ------------ ------------ End of period (1).............. $783,905,819 $536,759,802 $1,324,917,689 $1,064,099,519 $146,280,535 $125,509,591 ------------ ------------ -------------- -------------- ------------ ------------ ------------ ------------ -------------- -------------- ------------ ------------ - --------------------------------- ------------ ------------ -------------- -------------- ------------ ------------
(1) Includes undistributed net investment income of: $ 1,537,363 $ 901,158 $ 1,999,579 $ 1,931,709 $ -- $ 3,885 * On a tax basis, there was no return of capital.
The accompanying notes are an integral part of the financial statements. 67 STATEMENTS OF CHANGES IN NET ASSETS -----------------------------------------------------------------
COLUMBIA COLUMBIA COLUMBIA SPECIAL SMALL CAP REAL ESTATE EQUITY Years Ended December 31, FUND, INC. FUND, INC. FUND, INC. --------------------------------- --------------------------- ---------------------------- 1997 1996 1997 1996 (2) 1997 1996 --------------- --------------- ------------ ------------ ------------- ------------ INCREASE (DECREASE) IN NET ASSETS: Operations: Net investment income (loss)................... $ 531,773 $ (4,487,503) $ (443,585) $ (126) $ 5,578,378 $ 1,994,016 Net realized gain (loss) from investments (Note 2)....................... 122,678,842 295,204,950 4,931,098 (275,796) 3,597,873 1,627,328 Change in net unrealized appreciation (depreciation) on investments.............. 49,916,627 (112,950,905) 7,895,606 1,488,753 16,211,982 9,368,906 --------------- --------------- ------------ ------------ ------------- ------------ Net increase in net assets resulting from operations............... 173,127,242 177,766,542 12,383,119 1,212,831 25,388,233 12,990,250 Distributions to shareholders: From net investment income................... (4,230,674) (1,370,203) From net realized gain from investment transactions............. (122,678,842) (289,460,071) (4,258,935) (3,597,873) (1,627,328) In excess of net realized gain from investment transactions............. (154,157)* (243,742)* (349,207)* From tax return of capital.................. (1,252,467) (657,602) Capital share transactions, net (Note 3)............... (385,860,660) 312,562,708 67,245,755 19,848,539 67,417,742 37,500,111 --------------- --------------- ------------ ------------ ------------- ------------ Net increase (decrease) in net assets............... (335,566,417) 200,869,179 75,369,939 21,061,370 83,481,219 46,486,021 NET ASSETS: Beginning of period......... 1,585,284,214 1,384,415,035 21,061,370 68,073,221 21,587,200 --------------- --------------- ------------ ------------ ------------- ------------ End of period (1)........... $ 1,249,717,797 $ 1,585,284,214 $ 96,431,309 $ 21,061,370 $ 151,554,440 $ 68,073,221 --------------- --------------- ------------ ------------ ------------- ------------ --------------- --------------- ------------ ------------ ------------- ------------ - ------------------------------ --------------- --------------- ------------ ------------ ------------- ------------
(1) Includes undistributed net investment income (loss) of:.......................... $ 360,073 $ -- $ -- $ (126) $ -- $ -- (2) From inception of operations on September 11, 1996. * On a tax basis, there was no return of capital.
The accompanying notes are an integral part of the financial statements. 68 STATEMENTS OF CHANGES IN NET ASSETS -----------------------------------------------------------------
COLUMBIA COLUMBIA COLUMBIA BALANCED DAILY INCOME U.S. GOVERNMENT Years Ended December 31, FUND, INC. COMPANY SECURITIES FUND, INC. ----------------------------- ------------------------------- --------------------------- 1997 1996 1997 1996 1997 1996 ------------- ------------- --------------- ------------- ------------ ------------ INCREASE (DECREASE) IN NET ASSETS: Operations: Net investment income.......... $ 29,022,353 $ 22,231,964 $ 44,915,266 $ 40,303,114 $ 1,946,052 $ 2,058,101 Net realized gain from investments (Note 2).......... 62,144,958 41,189,499 147,024 83,457 Change in net unrealized appreciation (depreciation) on investments................... 38,270,990 4,167,518 63,763 (584,568) ------------- ------------- --------------- ------------- ------------ ------------ Net increase in net assets resulting from operations..... 129,438,301 67,588,981 44,915,266 40,303,114 2,156,839 1,556,990 Distributions to shareholders: From net investment income..... (28,593,156) (21,892,044) (44,915,266) (40,303,114) (1,946,052) (2,058,101) In excess of net investment income........................ (124,615)* From net realized gain from investment transactions....... (61,376,451) (41,189,499) In excess of net realized gain from investment transaction... (97,205)* Capital share transactions, net (Note 3)........................ 80,316,642 181,539,809 279,295,599 89,144,447 (3,150,453) (564,932) ------------- ------------- --------------- ------------- ------------ ------------ Net increase (decrease) in net assets........................ 119,785,336 185,825,427 279,295,599 89,144,447 (2,939,666) (1,066,043) NET ASSETS: Beginning of period.............. 672,592,920 486,767,493 889,799,969 800,655,522 40,776,341 41,842,384 ------------- ------------- --------------- ------------- ------------ ------------ End of period.................... $ 792,378,256 $ 672,592,920 $ 1,169,095,568 $ 889,799,969 $ 37,836,675 $ 40,776,341 ------------- ------------- --------------- ------------- ------------ ------------ ------------- ------------- --------------- ------------- ------------ ------------ - ----------------------------------- ------------- ------------- --------------- ------------- ------------ ------------
(1) Includes undistributed net investment income of: $ 758,037 $ 540,163 * On a tax basis, there was no return of capital.
The accompanying notes are an integral part of the financial statements. 69 STATEMENTS OF CHANGES IN NET ASSETS -----------------------------------------------------------------
COLUMBIA COLUMBIA COLUMBIA FIXED INCOME SECURITIES MUNICIPAL BOND HIGH YIELD Years Ended December 31, FUND, INC. FUND, INC. FUND, INC. -------------------------- ---------------------------- -------------------------- 1997 1996 1997 1996 1997 1996 ------------ ------------ ------------- ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS: Operations: Net investment income................... $ 23,438,026 $ 21,823,484 $ 19,046,726 $ 18,837,582 $ 2,832,822 $ 2,084,562 Net realized gain from investments (Note 2)..................................... 2,758,117 1,600,093 2,429,586 1,991,804 1,148,575 237,862 Change in net unrealized appreciation (depreciation) on investments.......... 7,594,450 (11,107,884) 10,155,954 (7,232,960) 279,884 (1,892) ------------ ------------ ------------- ------------ ------------ ------------ Net increase in net assets resulting from operations........................ 33,790,593 12,315,693 31,632,266 13,596,426 4,261,281 2,320,532 Distributions to shareholders: From net investment income.............. (23,438,026) (21,823,484) (19,046,726) (18,837,582) (2,832,822) (2,084,562) In excess of net investment income...... (4,724)* From net realized gain from investment transactions........................... (847,470) (2,276,966) (1,842,655) (1,136,542) (28,544) Capital share transactions, net (Note 3)....................................... 15,406,761 49,669,884 23,176,895 (1,044,677) 10,168,259 5,139,840 ------------ ------------ ------------- ------------ ------------ ------------ Net increase (decrease) in net assets... 24,911,858 40,162,093 33,480,745 (8,128,488) 10,460,176 5,347,266 NET ASSETS: Beginning of period....................... 356,420,896 316,258,803 375,667,430 383,795,918 28,818,233 23,470,967 ------------ ------------ ------------- ------------ ------------ ------------ End of period............................. $381,332,754 $356,420,896 $ 409,148,175 $375,667,430 $ 39,278,409 $ 28,818,233 ------------ ------------ ------------- ------------ ------------ ------------ ------------ ------------ ------------- ------------ ------------ ------------ * On a tax basis, there was no return of capital.
The accompanying notes are an integral part of the financial statements. 70 NOTES TO FINANCIAL STATEMENTS ----------------------------------------------------------------- -- 1. SIGNIFICANT ACCOUNTING POLICIES -- The Columbia Funds (the Funds) consist of Columbia Common Stock Fund, Inc. (CCSF), Columbia Growth Fund, Inc. (CGF), Columbia International Stock Fund, Inc. (CISF), Columbia Special Fund, Inc. (CSF), Columbia Small Cap Fund, Inc. (CSCF), Columbia Real Estate Equity Fund, Inc. (CREF), Columbia Balanced Fund, Inc. (CBF), Columbia Daily Income Company (CDIC), Columbia U.S. Government Securities Fund, Inc. (CUSG), Columbia Fixed Income Securities Fund, Inc. (CFIS), Columbia Municipal Bond Fund, Inc. (CMBF), and Columbia High Yield Fund, Inc. (CHYF). All Funds are open-end investment companies registered under the Investment Company Act of 1940, as amended, and are diversified except CMBF, which is non-diversified. The policies described below are consistently followed by the Funds in the preparation of their financial statements in conformity with generally accepted accounting principles. INVESTMENT VALUATION. The values of CCSF, CGF, CISF, CSF, CSCF, CREF and CBF equity investments are 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. Temporary cash investments in short-term securities (principally repurchase agreements) are valued at cost, which approximates market. CDIC investments are carried at values deemed best to reflect their fair values as determined in good faith by or under the supervision of officers of CDIC, specifically so authorized by its Directors. These values are based on cost adjusted for amortization of discount or premium and accrued interest, unless unusual circumstances indicate that another method of determining fair value should be considered. CBF, CUSG, CFIS, CMBF and CHYF fixed income investments are carried at values deemed best to reflect their fair values as determined in good faith under consistently applied procedures by or under the supervision of officers of the investment advisor to those Funds specifically so authorized by their Directors. These values are based on market value as quoted by dealers who are market makers in these securities or by an independent pricing service unless unusual circumstances indicate that another method of determining fair value should be considered. Market values for CBF, CUSG, CFIS and CHYF fixed income investments are based on the average of bid and ask prices and market value for CMBF is based on bid prices, or by reference to other securities with comparable ratings, interest rates and maturities. Temporary cash investments in short-term securities (principally repurchase agreements) are valued at cost, which approximates market. 71 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- -- 1. SIGNIFICANT ACCOUNTING POLICIES, CONTINUED -- AFFILIATED ISSUERS. Under the Investment Company Act of 1940, as amended, an issuer is an "affiliated issuer" of a Fund if the Fund holds 5% or more of that issuer's outstanding voting securities or is held under common control. CSF and CBF had investments in such affiliated issuers at December 31, 1997 as follows:
DIVIDEND AND BALANCE OF BALANCE OF INTEREST INCOME SHARES/PRINCIPAL SHARES/PRINCIPAL JANUARY 1, HELD GROSS GROSS HELD VALUE 1997- DECEMBER 31, PURCHASES & SALES & DECEMBER 31, DECEMBER 31, DECEMBER 31, NAME OF ISSUER 1996 ADDITIONS REDUCTIONS 1997 1997 1997 - ------------------------------ ---------------- ----------- ---------- ---------------- ------------- --------------- Columbia Special Fund (a) Abercrombie & Fitch Co........ -- 800,000 800,000 $ 25,000,000 Celadon Group, Inc............ 580,000 80,000 500,000 6,750,000 Gadzooks, Inc................. -- 700,000 700,000 14,700,000 Harmonic Lightwaves, Inc...... 540,000 540,000 -- -- Integrated Measurement Syst......................... 170,000 290,000 160,000 300,000 5,137,500 Osmonics, Inc................. 400,000 469,000 869,000 13,741,063 Resmed, Inc................... 605,000 105,000 500,000 14,062,500 Schnitzer Steel Industries.... 500,000 50,000 550,000 15,434,375 $107,500 United Dental Care............ 487,500 487,500 -- -- Vans, Inc..................... -- 860,000 860,000 13,007,500 ------------- --------------- 107,832,938 107,500 Columbia Balanced Fund (b) Fleet Mortgage Group, Inc..... 550,000 550,000 552,937 35,750 ------------- --------------- Total affiliated issuers.................................................................. $ 108,385,875 $143,250 ------------- --------------- ------------- ---------------
(a) Fund holds 5% or more of that issuer's outstanding shares. (b) Fund holds an investment under common control. (Note 4) FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS. CISF enters into forward foreign currency exchange contracts to hedge certain portfolio securities denominated in foreign currencies. Forward contracts are recorded at market value. CISF 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 increase (resulting from a change in exchange rates) in value of the securities denominated in that currency. Net realized gains arising from forward contracts amounted to $241,528 and are included in net realized gain from foreign currency transactions. As of December 31, 1997, CISF had entered into the following forward contract resulting in net unrealized appreciation of $129,673. 72 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- -- 1. SIGNIFICANT ACCOUNTING POLICIES, -- CONTINUED
JAPANESE YEN U.S. DOLLARS NET TO TO SETTLEMENT UNREALIZED BE DELIVERED BE RECEIVED DATE APPRECIATION - -------------- -------------- ---------- ------------- Y3,370,000,000 $ 26,154,849 01/28/1998 $ 129,673
FOREIGN CURRENCY TRANSLATIONS. The books and records of CISF are maintained in U.S. dollars. Foreign currency transactions are translated into U.S. dollars on the following basis: (i) market value of investment securities, other assets, and liabilities at the daily rates of exchange on the valuation date, and (ii) purchases and sales of investment securities, dividend and interest income and certain expenses at the rates of exchange prevailing on the respective dates of such transactions. CISF 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 of securities held. Such changes are included with the net realized and unrealized gain or loss from investments. Reported net realized foreign currency gains or losses arise from 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 CISF's books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, other than investments in securities, resulting from changes in the exchange rates. INTEREST AND DIVIDEND INCOME. Interest income is recorded on the accrual basis and dividend income is recorded on the ex-dividend date. Amortization of discount or premium is recorded over the life of the respective instrument. The majority of dividend income recorded by CREF is from Real Estate Investment Trusts (REITs). For tax purposes, a portion of these dividends consist of capital gains and return of capital. For financial reporting purposes, these dividends are recorded as dividend income. SHAREHOLDER DISTRIBUTIONS. CCSF, CREF and CBF distribute net investment income quarterly and any net realized gains from investment transactions annually. CGF, CISF, CSF and CSCF distribute net investment income and any net realized gains annually. CDIC distributes its net investment income daily -- including any realized investment gains or losses. CUSG, CFIS, CMBF and CHYF distribute their net investment income monthly and any net realized gains annually. Distributions to shareholders are recorded on the ex-dividend date. 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 company income and return of capital received from REITS. 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 revenues and expenses during the reporting period. Actual results could differ from those estimates. FEDERAL INCOME TAXES. The Funds have made no provision for federal income taxes on net investment income or net realized gains from sales of securities, since it is the intention of the Funds to comply with the provisions of the Internal Revenue Code available to certain investment companies, and to make distributions of income and security profits sufficient to relieve them from substantially all federal income taxes. 73 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- -- 1. SIGNIFICANT ACCOUNTING POLICIES, -- CONTINUED As of December 31, 1997, CUSG has $242,419 in capital loss carryovers available to offset future capital gains which expire in 2002. To the extent that the capital loss carryovers are used to offset any capital gains, it is unlikely that the gains so offset will be distributed to shareholders. OTHER. Investment transactions are accounted for on the date the investments are purchased or sold. The cost of investments sold is determined by the use of the specific identification method for both financial reporting and income tax purposes. Realized gains and losses from investment transactions and unrealized appreciation or depreciation of investments are reported on the basis of identified costs. The Funds, through their custodians, receive delivery of underlying securities collateralizing repurchase agreements (included in temporary cash investments). Market values of these securities are required to be at least 100% of the cost of the repurchase agreements. The Funds' investment advisor determines that the value of the underlying securities is at all times at least equal to the resale price. In the event of default or bankruptcy by the other party to the agreement, realization and/or retention of the collateral may be subject to legal proceedings. CHYF 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. At December 31, 1997, 41% of the Fund's debt securities were rated Ba and 59% were rated B by Moody's Investor Services, Inc. 74 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- -- 2. INVESTMENT TRANSACTIONS -- Aggregate purchases, sales and maturities, net realized gain and unrealized appreciation (depreciation) of investments, including temporary cash investments for CDIC and excluding temporary cash investments for all other Funds, as of and for the period ended December 31, 1997, were as follows:
COLUMBIA COLUMBIA COLUMBIA COLUMBIA COMMON STOCK GROWTH INTERNATIONAL STOCK SPECIAL FUND, INC. (CCSF) FUND, INC. (CGF) FUND, INC. (CISF) FUND, INC. (CSF) ----------------- ---------------- ------------------- ---------------- PURCHASES: Investment securities other than U.S. Government obligations..... $649,705,323 $1,132,681,444 $166,070,521 $2,285,721,068 ----------------- ---------------- ------------------- ---------------- ----------------- ---------------- ------------------- ---------------- SALES AND MATURITIES: Investment securities other than U.S. Government obligations..... $569,259,757 $1,154,366,139 $168,627,388 $2,727,547,308 ----------------- ---------------- ------------------- ---------------- ----------------- ---------------- ------------------- ---------------- NET REALIZED GAIN: Investment securities other than U.S. Government obligations..... $ 61,630,849 $ 150,238,079 $ 17,347,526 $ 122,678,842 ----------------- ---------------- ------------------- ---------------- ----------------- ---------------- ------------------- ---------------- UNREALIZED APPRECIATION (DEPRECIATION) AS OF DECEMBER 31, 1997: Appreciation..................... $148,390,643 $ 327,736,887 $ 23,089,195 $ 199,310,779 Depreciation..................... (10,521,532) (24,468,865) (8,182,034) (61,111,074) ----------------- ---------------- ------------------- ---------------- Net unrealized appreciation.... $137,869,111 $ 303,268,022 $ 14,907,125 $ 138,199,705 ----------------- ---------------- ------------------- ---------------- ----------------- ---------------- ------------------- ---------------- UNREALIZED APPRECIATION (DEPRECIATION) FOR FEDERAL INCOME TAX PURPOSES AS OF DECEMBER 31, 1997: Appreciation..................... $149,383,139 $ 329,136,822 $ 23,079,940 $ 199,396,129 Depreciation..................... (10,521,532) (24,763,294) (8,267,962) (62,132,757) ----------------- ---------------- ------------------- ---------------- Net unrealized appreciation.... $138,861,607 $ 304,373,528 $ 14,811,978 $ 137,263,372 ----------------- ---------------- ------------------- ---------------- ----------------- ---------------- ------------------- ---------------- For federal income tax purposes, the cost of investments owned at December 31, 1997................. $590,091,210 $ 997,456,659 $115,448,050 $1,081,321,466 ----------------- ---------------- ------------------- ---------------- ----------------- ---------------- ------------------- ----------------
The net realized gain for CCSF, CGF, & CSF includes proceeds of $2,242, $361,277, & $672,539, respectively, from shareholder class action suits related to securities held by those Funds. 75 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- -- 2. INVESTMENT TRANSACTIONS, CONTINUED --
COLUMBIA COLUMBIA REAL ESTATE COLUMBIA COLUMBIA SMALL CAP EQUITY FUND, INC. BALANCED DAILY INCOME FUND, INC. (CSCF) (CREF) FUND, INC. (CBF) COMPANY (CDIC) ----------------- ----------------- ---------------- --------------- PURCHASES: Investment securities other than U.S. Government obligations............... $147,752,870 $ 99,553,326 $ 565,825,789 $9,939,776,531 U.S. Government obligations........... 604,980,516 33,659,217 ----------------- ----------------- ---------------- --------------- Total purchases..................... $147,752,870 $ 99,553,326 $1,170,806,305 $9,973,435,748 ----------------- ----------------- ---------------- --------------- ----------------- ----------------- ---------------- --------------- SALES AND MATURITIES: Investment securities other than U.S. Government obligations............... $ 86,451,984 $ 35,352,329 $ 509,635,998 $9,669,083,804 U.S. Government obligations........... 613,086,023 33,659,217 ----------------- ----------------- ---------------- --------------- Total sales and maturities.......... $ 86,451,984 $ 35,352,329 $1,122,722,021 $9,702,743,021 ----------------- ----------------- ---------------- --------------- ----------------- ----------------- ---------------- --------------- NET REALIZED GAIN: Investment securities other than U.S. Government obligations............... $ 4,931,098 $ 3,597,873 $ 60,242,570 U.S. Government obligations........... 1,902,388 ----------------- ----------------- ---------------- Total net realized gain............. $ 4,931,098 $ 3,597,873 $ 62,144,958 ----------------- ----------------- ---------------- ----------------- ----------------- ---------------- UNREALIZED APPRECIATION (DEPRECIATION) AS OF DECEMBER 31, 1997:............... Appreciation.......................... $ 12,040,728 $ 27,174,929 $ 98,838,009 Depreciation.......................... (2,656,369) (58,115) (4,517,651) ----------------- ----------------- ---------------- Net unrealized appreciation......... $ 9,384,359 $ 27,116,814 $ 94,320,358 ----------------- ----------------- ---------------- ----------------- ----------------- ---------------- UNREALIZED APPRECIATION (DEPRECIATION) FOR FEDERAL INCOME TAX PURPOSES AS OF DECEMBER 31, 1997: Appreciation.......................... $ 12,028,865 $ 29,011,667 $ 99,512,204 Depreciation.......................... (2,704,005) (58,115) (4,608,500) ----------------- ----------------- ---------------- Net unrealized appreciation......... $ 9,324,860 $ 28,953,552 $ 94,903,704 ----------------- ----------------- ---------------- ----------------- ----------------- ---------------- For federal income tax purposes, the cost of investments owned at December 31, 1997............................... $ 84,013,201 $111,208,205 $ 686,783,832 $1,173,657,688 ----------------- ----------------- ---------------- --------------- ----------------- ----------------- ---------------- ---------------
The net realized gain for CBF includes proceeds of $2,236 from shareholder class action suits related to securities held by the Fund. - -------------------------------------------------------------------------------- 76 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- -- 2. INVESTMENT TRANSACTIONS, CONTINUED --
COLUMBIA U.S. COLUMBIA FIXED COLUMBIA COLUMBIA GOVERNMENT SECURITIES INCOME SECURITIES MUNICIPAL BOND HIGH YIELD FUND, INC. (CUSG) FUND, INC. (CFIS) FUND, INC. (CMBF) FUND, INC. (CHYF) --------------------- ----------------- ----------------- ----------------- PURCHASES: Investment securities other than U.S. Government obligations............... $205,016,907 $ 81,001,133 $46,508,531 U.S. Government obligations........... $77,834,027 514,542,364 747,187 --------------------- ----------------- ----------------- ----------------- Total purchases..................... $77,834,027 $719,559,271 $ 81,001,133 $47,255,718 --------------------- ----------------- ----------------- ----------------- --------------------- ----------------- ----------------- ----------------- SALES AND MATURITIES: Investment securities other than U.S. Government obligations............... $179,565,984 $ 64,319,420 $39,446,080 U.S. Government obligations........... $81,184,234 528,675,378 1,240,234 --------------------- ----------------- ----------------- ----------------- Total sales and maturities.......... $81,184,234 $708,241,362 $ 64,319,420 $40,686,314 --------------------- ----------------- ----------------- ----------------- --------------------- ----------------- ----------------- ----------------- NET REALIZED GAIN (LOSS): Investment securities other than U.S. Government obligations............... $ (80,814) $ 2,429,586 $ 1,165,879 U.S. Government obligations........... $ 147,024 2,838,931 (17,304) --------------------- ----------------- ----------------- ----------------- Total net realized gain............. $ 147,024 $ 2,758,117 $ 2,429,586 $ 1,148,575 --------------------- ----------------- ----------------- ----------------- --------------------- ----------------- ----------------- ----------------- UNREALIZED APPRECIATION (DEPRECIATION) AS OF DECEMBER 31, 1997: Appreciation.......................... $ 103,729 $ 9,785,428 $ 24,070,747 $ 1,157,854 Depreciation.......................... (12,779) (185,534) (7,377) (27,190) --------------------- ----------------- ----------------- ----------------- Net unrealized appreciation......... $ 90,950 $ 9,599,894 $ 24,063,370 $ 1,130,664 --------------------- ----------------- ----------------- ----------------- --------------------- ----------------- ----------------- ----------------- UNREALIZED APPRECIATION (DEPRECIATION) FOR FEDERAL INCOME TAX PURPOSES AS OF DECEMBER 31, 1997: Appreciation.......................... $ 96,870 $ 9,785,428 $ 24,061,804 $ 1,157,854 Depreciation.......................... (12,779) (186,732) (7,377) (27,190) --------------------- ----------------- ----------------- ----------------- Net unrealized appreciation......... $ 84,091 $ 9,598,696 $ 24,054,427 $ 1,130,664 --------------------- ----------------- ----------------- ----------------- --------------------- ----------------- ----------------- ----------------- For federal income tax purposes, the cost of investments owned at December 31, 1997............................... $37,026,159 $352,107,930 $373,395,102 $34,017,097 --------------------- ----------------- ----------------- ----------------- --------------------- ----------------- ----------------- -----------------
- -------------------------------------------------------------------------------- 77 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- -- 3. CAPITAL STOCK --
COLUMBIA COLUMBIA COLUMBIA COMMON STOCK GROWTH INTERNATIONAL STOCK FUND, INC. (CCSF) FUND, INC. (CGF) FUND, INC. (CISF) ----------------------------- ------------------------------- ----------------------------- 1997 1996 1997 1996 1997 1996 ------------- ------------- -------------- -------------- ------------- ------------- SHARES: Shares sold................... 12,609,458 9,187,403 9,453,209 9,588,118 6,414,910 4,458,919 Shares issued for reinvestment of dividends................. 3,039,307 3,836,536 4,230,608 4,993,329 1,146,267 808,789 ------------- ------------- -------------- -------------- ------------- ------------- 15,648,765 13,023,939 13,683,817 14,581,447 7,561,177 5,267,708 Less shares redeemed.......... (7,908,821) (4,449,235) (9,715,431) (8,408,189) (5,939,634) (3,930,959) ------------- ------------- -------------- -------------- ------------- ------------- Net increase in shares........ 7,739,944 8,574,704 3,968,386 6,173,258 1,621,543 1,336,749 ------------- ------------- -------------- -------------- ------------- ------------- ------------- ------------- -------------- -------------- ------------- ------------- AMOUNTS: Sales......................... $ 277,332,028 $ 183,843,205 $ 329,861,186 $ 309,798,468 $ 98,515,375 $ 62,941,735 Reinvestment of dividends..... 66,961,124 74,699,264 145,279,077 154,190,774 15,703,862 11,145,109 ------------- ------------- -------------- -------------- ------------- ------------- 344,293,152 258,542,469 475,140,263 463,989,242 114,219,237 74,086,844 Less redemptions.............. (175,504,043) (89,430,805) (339,050,645) (270,385,702) (92,291,698) (55,506,780) ------------- ------------- -------------- -------------- ------------- ------------- Net increase.................. $ 168,789,109 $ 169,111,664 $ 136,089,618 $ 193,603,540 $ 21,927,539 $ 18,580,064 ------------- ------------- -------------- -------------- ------------- ------------- ------------- ------------- -------------- -------------- ------------- ------------- Capital stock authorized (shares)..................... 100,000,000 100,000,000 100,000,000 Par Value..................... no par $.01 no par
- --------------------------------------------------------------------------------
COLUMBIA COLUMBIA COLUMBIA SPECIAL SMALL CAP REAL ESTATE EQUITY FUND, INC. (CSF) FUND, INC. (CSCF) FUND, INC. (CREF) ------------------------------- ---------------------------- ----------------------------- 1997 1996 1997 1996 (1) 1997 1996 -------------- -------------- ------------- ------------ ------------- ------------- SHARES: Shares sold...................... 17,301,738 25,624,116 6,092,245 1,756,650 9,713,082 4,543,366 Shares issued for reinvestment of dividends....................... 5,787,116 13,826,136 229,093 444,904 226,545 -------------- -------------- ------------- ------------ ------------- ------------- 23,088,854 39,450,252 6,321,338 1,756,650 10,157,986 4,769,911 Less shares redeemed............. (41,278,382) (24,162,690) (2,149,149) (135,869) (6,308,136) (2,255,778) -------------- -------------- ------------- ------------ ------------- ------------- Net increase (decrease) in shares.......................... (18,189,528) 15,287,562 4,172,189 1,620,781 3,849,850 2,514,133 -------------- -------------- ------------- ------------ ------------- ------------- -------------- -------------- ------------- ------------ ------------- ------------- AMOUNTS: Sales............................ $ 365,659,534 $ 593,195,434 $ 97,707,061 $ 21,545,009 $ 168,764,062 $ 65,389,802 Reinvestment of dividends........ 117,246,979 273,619,242 3,814,406 8,209,513 3,428,343 -------------- -------------- ------------- ------------ ------------- ------------- 482,906,513 866,814,676 101,521,467 21,545,009 176,973,575 68,818,145 Less redemptions................. (868,767,173) (554,251,968) (34,275,712) (1,696,470) (109,555,833) (31,318,034) -------------- -------------- ------------- ------------ ------------- ------------- Net increase (decrease).......... $ (385,860,660) $ 312,562,708 $ 67,245,755 $ 19,848,539 $ 67,417,742 $ 37,500,111 -------------- -------------- ------------- ------------ ------------- ------------- -------------- -------------- ------------- ------------ ------------- ------------- Capital stock authorized (shares)........................ 100,000,000 100,000,000 100,000,000 Par Value........................ $ .01 no par no par
(1) From inception of operations on September 11, 1996.
- -------------------------------------------------------------------------------- 78 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- -- 3. CAPITAL STOCK, CONTINUED --
COLUMBIA COLUMBIA COLUMBIA U.S. BALANCED DAILY INCOME GOVERNMENT SECURITIES FUND, INC. (CBF) COMPANY (CDIC) FUND, INC. (CUSG) ----------------------------- --------------------------------- --------------------------- 1997 1996 1997 1996 1997 1996 ------------- ------------- --------------- --------------- ------------ ------------ SHARES: Shares sold................... 11,631,390 12,203,107 1,948,660,105 1,425,767,034 1,678,641 1,751,071 Shares issued for reinvestment of dividends................. 4,143,787 3,066,051 44,892,534 40,287,100 214,917 230,872 ------------- ------------- --------------- --------------- ------------ ------------ 15,775,177 15,269,158 1,993,552,639 1,466,054,134 1,893,558 1,981,943 Less shares redeemed.......... (11,880,698) (6,405,495) (1,714,257,040) (1,376,909,687) (2,278,311) (2,051,336) ------------- ------------- --------------- --------------- ------------ ------------ Net increase (decrease) in shares....................... 3,894,479 8,863,663 279,295,599 89,144,447 (384,753) (69,393) ------------- ------------- --------------- --------------- ------------ ------------ ------------- ------------- --------------- --------------- ------------ ------------ AMOUNTS: Sales......................... $ 255,961,711 $ 251,516,248 $ 1,948,660,105 $ 1,425,767,034 $ 13,843,228 $ 14,407,264 Reinvestment of dividends..... 89,309,106 62,884,919 44,892,534 40,287,100 1,771,509 1,898,935 ------------- ------------- --------------- --------------- ------------ ------------ 345,270,817 314,401,167 1,993,552,639 1,466,054,134 15,614,737 16,306,199 Less redemptions.............. (264,954,175) (132,861,358) (1,714,257,040) (1,376,909,687) (18,765,190) (16,871,131) ------------- ------------- --------------- --------------- ------------ ------------ Net increase (decrease)....... $ 80,316,642 $ 181,539,809 $ 279,295,599 $ 89,144,447 $ (3,150,453) $ (564,932) ------------- ------------- --------------- --------------- ------------ ------------ ------------- ------------- --------------- --------------- ------------ ------------ Capital stock authorized (shares)..................... 100,000,000 2,000,000,000 100,000,000 Par Value..................... no par $.001 $.01
COLUMBIA FIXED COLUMBIA COLUMBIA INCOME SECURITIES MUNICIPAL BOND HIGH YIELD FUND, INC. (CFIS) FUND, INC. (CMBF) FUND, INC. (CHYF) ----------------------------- ----------------------------- ----------------------------- 1997 1996 1997 1996 1997 1996 ------------- ------------- ------------- ------------- ------------- ------------- SHARES: Shares sold...................... 8,909,289 9,571,457 6,372,612 4,732,337 2,127,208 1,058,203 Shares issued for reinvestment of dividends....................... 1,456,925 1,427,852 1,369,697 1,395,611 342,994 197,255 ------------- ------------- ------------- ------------- ------------- ------------- 10,366,214 10,999,309 7,742,309 6,127,948 2,470,202 1,255,458 Less shares redeemed............. (9,188,186) (7,165,704) (5,853,872) (6,210,439) (1,457,004) (730,964) ------------- ------------- ------------- ------------- ------------- ------------- Net increase (decrease) in shares.......................... 1,178,028 3,833,605 1,888,437 (82,491) 1,013,198 524,494 ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- AMOUNTS: Sales............................ $ 117,209,758 $ 124,564,521 $ 77,959,329 $ 57,398,891 $ 21,499,878 $ 10,345,832 Reinvestment of dividends........ 19,185,059 18,580,087 16,813,005 16,930,817 3,460,890 1,925,766 ------------- ------------- ------------- ------------- ------------- ------------- 136,394,817 143,144,608 94,772,334 74,329,708 24,960,768 12,271,598 Less redemptions................. (120,988,056) (93,474,724) (71,595,439) (75,374,385) (14,792,509) (7,131,758) ------------- ------------- ------------- ------------- ------------- ------------- Net increase (decrease).......... $ 15,406,761 $ 49,669,884 $ 23,176,895 $ (1,044,677) $ 10,168,259 $ 5,139,840 ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- Capital stock authorized (shares)........................ 200,000,000 100,000,000 100,000,000 Par Value........................ $.01 $.01 no par
79 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- -- 4. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES --
COLUMBIA COLUMBIA COLUMBIA COLUMBIA SPECIAL COMMON STOCK GROWTH INTERNATIONAL STOCK FUND, INC. FUND, INC. (CCSF) FUND, INC. (CGF) FUND, INC. (CISF) (CSF) ----------------- --------------------- ------------------- ---------- Investment management fees incurred..... $4,158,273 $7,019,161 $1,504,787 $12,373,140 Investment management fee computation basis (percentage of daily net assets per annum)............................. 0.60 of 1% 0.75 of 1% to 1% 1% to $200,000,000 daily $500,000,000 net assets; 0.625 of daily net 1% between assets; $200,000,000 and 0.75 of 1% $500,000,000; and in excess 0.50 of 1% of in excess of $500,000,000 $500,000,000 Transfer agent fee (included in shareholder servicing costs)........... $424,958 $857,591 $313,943 $979,562 Fees earned by directors not affiliated with each Fund's investment advisor, transfer agent, or Columbia Management Co..................................... $6,704 $11,980 $1,476 $14,774 Value of investments held at December 31, 1997 by: Columbia Management Co................ $457,230 $94,101 $62,437 $2,232,560 Columbia Funds Management Company..... $93,330 $44,502 $16,810 $769,764
COLUMBIA COLUMBIA COLUMBIA COLUMBIA SMALL CAP REAL ESTATE EQUITY BALANCED DAILY INCOME FUND, INC. (CSCF) FUND, INC. (CREF) FUND, INC. (CBF) COMPANY (CDIC) ----------------- ------------------ ---------------- ------------------ Investment management fees incurred..... $547,892 $864,343 $3,826,628 $4,296,685 Investment management fee computation basis (percentage of daily net assets per annum)............................. 1% 0.75 of 1% 0.50 of 1% 0.50 of 1% to $500,000,000 daily net assets; 0.45 of 1% between $500,000,000 and $1,000,000,000; and 0.40 of 1% in excess of $1,000,000,000 Transfer agent fee (included in shareholder servicing costs)........... $73,575 $131,357 $511,482 $648,992 Fees earned by directors not affiliated with each Fund's investment advisor, transfer agent, or Columbia Management Co..................................... $506 $1,110 $7,503 $8,731 Value of investments held at December 31, 1997 by: Columbia Management Co................ $139,668 $2,604,160 Columbia Funds Management Company..... $11,827 $24,472 $3,356,624
- -------------------------------------------------------------------------------- 80 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- -- 4. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES, CONTINUED --
COLUMBIA U.S. COLUMBIA FIXED COLUMBIA COLUMBIA GOVERNMENT SECURITIES INCOME SECURITIES MUNICIPAL BOND HIGH YIELD FUND, INC. (CUSG) FUND, INC. (CFIS) FUND, INC. (CMBF) FUND, INC. (CHYF) --------------------- ----------------- ----------------- ----------------- Investment management fees incurred..... $194,230 $1,821,809 $1,952,213 $211,632 Investment management fee computation basis (percentage of daily net assets per annum)............................. 0.50 of 1% 0.50 of 1% 0.50 of 1% 0.60 of 1% Transfer agent fee (included in shareholder servicing costs)........... $45,009 $249,777 $112,418 $38,316 Fees earned by directors not affiliated with each Fund's investment advisor, transfer agent, or Columbia Management Co..................................... $390 $3,611 $3,867 $348 Value of investments held at December 31, 1997 by: Columbia Management Co................ $417,550 $1,015,605 $2,066,804 $367,927 Columbia Funds Management Company..... $66,328 $291,606 $293,924 $291,996
The investment advisor of the Funds is Columbia Funds Management Company (CFMC). The transfer agent for the Funds is Columbia Trust Company (CTC), a majority owned subsidiary of CFMC. The transfer agent is compensated based on a per account fee. On December 10, 1997, CFMC, CTC and Columbia Management Company (CMC), an affiliated company, became - -------------------------------------------------------------------------------- indirect subsidiaries of Fleet Financial Group, Inc. (Fleet), a publicly owned multi-bank holding company registered under the Bank Holding Company Act of 1956. Prior to that date, certain officers and directors of the Funds were also officers and directors of CFMC, CTC and CMC. Those individuals did not receive any compensation or other payment from the Funds. As a result of federal banking regulations, no officers or directors of the Funds are officers or directors of CFMC, CTC or CMC following the transaction with Fleet. J. Jerry Inskeep, Jr., an officer and director of the Funds, is affiliated with Fleet, but receives no compensation or other payment from the Funds. As a result of the transaction with Fleet, directors of the Funds were required to approve new contracts for investment advisory and transfer agent services between the Funds and CFMC and CTC, respectively. These new contracts are the same in all material respects to the corresponding previous contracts. Shareholders of the Funds were required to approve the new investment advisory contracts. The proxy voting results of the approval by shareholders of the Funds of those contracts is set forth at the end of this 1997 Annual Report. 81 REPORT OF INDEPENDENT ACCOUNTANTS ----------------------------------------------------------------- TO THE SHAREHOLDERS AND BOARD OF DIRECTORS, Columbia Common Stock Fund, Inc. (CCSF) Columbia Growth Fund, Inc. (CGF) Columbia International Stock Fund, Inc. (CISF) Columbia Small Cap Fund, Inc. (CSCF) Columbia Special Fund, Inc. (CSF) Columbia Real Estate Equity Fund, Inc. (CREF) Columbia Balanced Fund, Inc. (CBF) Columbia Daily Income Company (CDIC) Columbia U.S. Government Securities Fund, Inc. (CUSG) Columbia Fixed Income Securities Fund, Inc. (CFIS) Columbia Municipal Bond Fund, Inc. (CMBF) Columbia High Yield Fund, Inc. (CHYF) We have audited the accompanying statements of assets and liabilities, including the schedules of investments for each of the twelve funds comprising Columbia Funds (the "Funds"), as of December 31, 1997, the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, except for CSCF which is for the period from inception, September 11, 1996 to December 31, 1996 and for the year ended December 31, 1997 and the financial highlights for each of the periods indicated therein. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 1997, by correspondence with the custodians and brokers. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the twelve funds comprising Columbia Funds enumerated above as of December 31, 1997, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, except for CSCF which is for the period from inception, September 11, 1996 to December 31, 1996 and for the year ended December 31, 1997 and the financial highlights for each of the periods indicated therein, in conformity with generally accepted accounting principles. COOPERS & LYBRAND L.L.P. Portland, Oregon February 12, 1998 82 PROXY VOTING RESULTS ----------------------------------------------------------------- On December 4, 1997, the Funds held a Special Meeting of Shareholders to approve new investment advisory contracts with the Advisor. The need to approve a new investment advisory contract was caused by the change in control of the Advisor resulting from the acquisition of the Advisor by Fleet Financial Group, Inc. A new investment advisory contract was approved by each Fund as shown below:
TOTAL FUND OUTSTANDING FOR AGAINST ABSTENTION - ----------------------------------- ------------ --------- ---------- ----------- Columbia Common Stock Fund......... 33,424,104 23,503,684 92,486 125,914 Columbia Growth Fund............... 34,932,310 18,670,005 323,723 442,534 Columbia International Stock Fund.............................. 10,136,429 6,162,186 75,846 128,929 Columbia Special Fund.............. 66,728,987 35,764,587 603,044 1,097,275 Columbia Small Cap Fund............ 4,439,465 2,766,574 45,914 34,298 Columbia Real Estate Equity Fund... 7,395,725 4,826,934 70,141 52,743 Columbia Balanced Fund............. 36,136,805 19,709,041 97,202 240,899 Columbia Daily Income Company...... 875,748,841 464,677,559 11,346,679 10,251,952 Columbia U.S. Government Securities Fund.............................. 4,525,865 3,140,210 15,454 39,456 Columbia Fixed Income Securities Fund.............................. 27,941,833 15,526,380 226,012 255,217 Columbia Municipal Bond Fund....... 32,247,512 20,286,357 523,472 551,537 Columbia High Yield Fund........... 3,715,453 2,400,164 12,704 54,931
SHARES OF THE FUNDS ARE NOT BANK DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR ENDORSED BY, FLEET FINANCIAL GROUP, INC. OR ANY OF ITS AFFILIATES, THE ADVISOR, OR ANY FLEET BANK. SHARES OF THE FUNDS ARE NOT FEDERALLY INSURED BY, GUARANTEED BY, OBLIGATIONS OF OR OTHERWISE SUPPORTED BY THE U.S. GOVERNMENT, THE FEDERAL DEPOSIT INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD OR ANY OTHER GOVERNMENTAL AGENCY. INVESTMENT IN THE FUNDS INVOLVES INVESTMENT RISK, INCLUDING THE POSSIBLE LOSS OF PRINCIPAL. -----END PRIVACY-ENHANCED MESSAGE-----