-----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, WY5Kh/rKPGRQeBWmk7mzLn2xEo8zrL6RR+R7afIQxiRYuzacjcSbDKY55oq/IdiU 3cIU2nS1Kk1doLKtJWQ3wQ== 0000021847-95-000093.txt : 19951103 0000021847-95-000093.hdr.sgml : 19951103 ACCESSION NUMBER: 0000021847-95-000093 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19950831 FILED AS OF DATE: 19951102 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: COLONIAL TRUST II / CENTRAL INDEX KEY: 0000315665 STANDARD INDUSTRIAL CLASSIFICATION: [] IRS NUMBER: 046452949 FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-03009 FILM NUMBER: 95586722 BUSINESS ADDRESS: STREET 1: ONE FINANCIAL CTR CITY: BOSTON STATE: MA ZIP: 02111 BUSINESS PHONE: 6174263750 FORMER COMPANY: FORMER CONFORMED NAME: COLONIAL MONEY MARKET FUND DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: COLONIAL TRUST II DATE OF NAME CHANGE: 19920505 FORMER COMPANY: FORMER CONFORMED NAME: COLONIAL MONEY MARKET TRUST/MA/ DATE OF NAME CHANGE: 19910917 N-30D 1 COLONIAL GOVERNMENT MONEY MARKET FUND ANNUAL REPOR [LOGO] ================================================================================ COLONIAL GOVERNMENT MONEY MARKET FUND ================================================================================ ANNUAL REPORT AUGUST 31, 1995 COLONIAL GOVERNMENT MONEY MARKET FUND HIGHLIGHTS SEPTEMBER 1, 1994 - AUGUST 31, 1995 INVESTMENT OBJECTIVE: Colonial Government Money Market Fund seeks current income, consistent with capital preservation and liquidity, by investing exclusively in short-term U.S. government securities. THE FUND IS DESIGNED TO OFFER: - Steady monthly income - Stable net asset value - A high quality portfolio COLONIAL GOVERNMENT MONEY MARKET FUND PERFORMANCE
CLASS A CLASS B CLASS D Inception dates 1/30/81 6/8/92 7/1/94 Distributions declared per share $0.050 $0.040 $0.040 Seven-day yield on 8/31/95 5.23% 4.19% 4.20% 30-day yield on 8/31/95 5.20% 4.20% 4.20%
A PORTFOLIO OF HIGH QUALITY MONEY MARKET SECURITIES* As of 8/31/95 Your Fund's portfolio holdings represent a selection of short-term, fixed-income U.S. government and agency securities. These holdings include notes issued by the Federal National Mortgage Association (FNMA), Federal Home Loan Bank (FHLB), and Federal Home Loan Mortgage Bank (FHLMB). FHLBs 12.4 FNMAs 32.3 FHLMCs 13.7 Repurchase Agreement 41.6
*As a percent of total investments. 2 PRESIDENT'S MESSAGE TO FUND SHAREHOLDERS [PHOTO OF JOHN A. MCNEICE, JR. IN UPPER LEFT-HAND CORNER] The Fund's fiscal year began with short-term interest rates moving higher, as the Federal Reserve Board sought to keep the economy from overheating. However, rates have trended lower since the beginning of 1995, and the Fed changed its policy in early July, when it cut the federal funds rate. Overall, however, short-term rates are still generally higher than they were at the start of the 12-month period. In fact, your Fund's 12-month total return was significantly higher than that of the prior fiscal year. It now appears that the U.S. economy is coming in for the "soft landing" that has been the Federal Reserve Board's goal for the last two years. Real gross domestic product (GDP) for the first two quarters of 1995 grew at an annualized rate of 2.7% and 1.3%, respectively, down significantly from the annualized GDP growth rate of 5.1% for the final quarter of 1994. Faced with a declining interest rate environment, portfolio manager Ann Peterson lengthened the average maturity of the portfolio to lock in attractive yields. From the beginning to the end of the fiscal year, the average maturity of the portfolio was extended from 34 to 56 days. Ann expects that the Fed will continue its accommodative monetary policy in the future. We will be closely monitoring the market for any signs of a change in economic growth and Fed policy, and will make appropriate changes in the portfolio as needed. Respectfully, /s/ John A. McNeice, Jr. - ------------------------ John A. McNeice, Jr. President October 11, 1995 3 INVESTMENT PORTFOLIO AUGUST 31, 1995 (IN THOUSANDS) SHORT-TERM OBLIGATIONS - 103.1% - -------------------------------------------------------------------------------- U.S. GOVERNMENT AGENCIES - 60.2 % - --------------------------------------------------------------------------------
(UNAUDITED) ANNUALIZED YIELD AT TIME MATURITY OF PURCHASE PAR VALUE - -------------------------------------------------------------------------------- Federal Home Loan Bank: 10/02/95 5.600% $ 5,000 $ 4,976 10/18/95 5.600% 5,000 4,963 11/08/95 5.570% 3,000 2,968 02/26/96 5.480% 5,000 4,865 -------- 17,772 -------- Federal Home Loan Mortgage Corp.: 09/25/95 5.800% 7,000 6,973 11/08/95 5.590% 3,000 2,968 02/05/96 5.480% 5,000 4,880 02/08/96 5.510% 5,000 4,878 -------- 19,699 -------- Federal National Mortgage Association: 09/12/95 5.780% 5,000 4,991 09/27/95 5.760% 5,000 4,979 10/25/95 5.650% 5,000 4,958 11/01/95 5.700% 5,000 4,952 11/29/95 5.550% 7,000 6,904 12/12/95 5.650% 5,000 4,920 02/01/96 5.480% 5,000 4,883 03/01/96 5.470% 5,000 4,862 03/28/96 5.490% 5,000 4,841 -------- 46,290 -------- TOTAL U.S. GOVERNMENT AGENCIES (cost of $83,761) 83,761 -------- REPURCHASE AGREEMENTS- 42.9% - -------------------------------------------------------------------------------- Repurchase agreement with Bankers Trust Securities Corp., dated 8/31/95, due 9/01/95 at 5.800%, collateralized by U.S. Treasury notes maturing in 1998, market value $30,357 (repurchase proceeds $29,709) 29,704 29,704 Repurchase agreement with Chase Securities, Inc., dated 8/31/95, due 9/01/95 at 5.820% collateralized by U.S. Treasury bills and notes with various maturities to 1997, market value $30,648 (repurchase proceeds $30,005) 30,000 30,000 --------
4 Investment Portfolio/August 31, 1995 - -------------------------------------------------------------------------------- TOTAL REPURCHASE AGREEMENTS (cost of $59,704) $ 59,704 -------- TOTAL SHORT-TERM OBLIGATIONS (cost of $143,465) (a) 143,465 -------- OTHER ASSETS & LIABILITIES, NET - (3.1) % (4,313) - -------------------------------------------------------------------------------- NET ASSETS - 100% $139,152 --------
NOTE TO INVESTMENT PORTFOLIO: - -------------------------------------------------------------------------------- (a) Cost for federal income tax purposes is the same. See notes to financial statements. 5 STATEMENT OF ASSETS & LIABILITIES AUGUST 31, 1995
(in thousands except for per share amounts) ASSETS Investments at amortized cost $ 143,465 Receivable for: Fund shares sold $ 532 Interest 10 Other 14 556 ------- --------- Total Assets 144,021 LIABILITIES Payable for: Fund shares repurchased 4,282 Distributions 565 Accrued: Deferred Trustees fees 1 Other 21 ------- Total Liabilities 4,869 --------- NET ASSETS $ 139,152 --------- Net asset value: Class A ($83,086/83,052) $1.00 --------- Class B ($55,441/55,439) $1.00 (a) --------- Class D ($625/625) $1.00 (a) --------- Maximum offering price per share - Class D ($1.00/0.99) $1.01 --------- COMPOSITION OF NET ASSETS Capital paid in $ 139,103 Undistributed net investment income 36 Accumulated net realized gain 13 --------- $ 139,152 ---------
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. See notes to financial statements. 6 STATEMENT OF OPERATIONS FOR THE YEAR ENDED AUGUST 31, 1995
(in thousands) INVESTMENT INCOME Interest $ 7,802 EXPENSES Management fee $ 467 Service fee - Class B 132 Service fee - Class D 1 Distribution fee - Class B 396 Distribution fee - Class D 4 Transfer agent 336 Bookkeeping fee 58 Trustees fee 11 Custodian fee 7 Audit fee 28 Legal fee 10 Registration fee 67 Reports to shareholders 11 Other 16 ------- 1,544 Fees waived by the Adviser (55) 1,489 ------- ------- Net Investment Income $ 6,313 -------
See notes to financial statements. 7 STATEMENT OF CHANGES IN NET ASSETS
Year ended (in thousands) August 31 ------------------------ INCREASE (DECREASE) IN NET ASSETS 1995 1994(a) Operations: Net investment income $ 6,313 $ 2,816 Net realized loss (1) --------- --------- Net Increase from Operations 6,313 2,815 Distributions: From net investment income - Class A (4,177) (2,136) From net investment income - Class B (2,093) (666) From net investment income - Class D (22) (2) --------- --------- 21 11 --------- --------- Fund Share Transactions: Receipts for shares sold - Class A 528,856 284,222 Value of distributions reinvested - Class A 3,257 1,633 Cost of shares repurchased - Class A (546,152) (233,441) --------- --------- (14,039) 52,414 --------- --------- Receipts for shares sold - Class B 113,063 121,635 Value of distributions reinvested - Class B 1,596 461 Cost of shares repurchased - Class B (113,764) (78,454) --------- --------- 895 43,642 --------- --------- Receipts for shares sold - Class D 124 517 Value of distributions reinvested - Class D 20 1 Cost of shares repurchased - Class D (37) --------- --------- 107 518 --------- --------- Net Increase (Decrease) from Fund Share Transactions (13,037) 96,574 --------- --------- Total Increase (Decrease) (13,016) 96,585 NET ASSETS Beginning of period 152,168 55,583 --------- --------- End of period (including undistributed net investment income of $36 and $15, respectively) $ 139,152 $ 152,168 --------- --------- NUMBER OF FUND SHARES Sold - Class A 528,856 284,222 Issued for distributions reinvested - Class A 3,257 1,633 Repurchased - Class A (546,152) (233,441) --------- --------- (14,039) 52,414 --------- --------- Sold - Class B 113,063 121,635 Issued for distributions reinvested - Class B 1,596 461 Repurchased - Class B (113,764) (78,454) --------- --------- 895 43,642 --------- --------- Sold - Class D 124 517 Issued for distributions reinvested - Class D 21 1 Repurchased - Class D (38) --------- --------- 107 518 --------- ---------
(a) Class D shares were initially offered on July 1, 1994. See notes to financial statements. 8 NOTES TO FINANCIAL STATEMENTS AUGUST 31, 1995 NOTE 1. ACCOUNTING POLICIES - -------------------------------------------------------------------------------- ORGANIZATION: Colonial Government Money Market Fund (the Fund), a series of Colonial Trust II, is a diversified portfolio of a Massachusetts business trust, registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. The Fund may issue an unlimited number of shares. The Fund offers three classes of shares: Class A, Class B and Class D. Class B shares, which are identical to Class A shares except for an annual service and distribution fee and a contingent deferred sales charge, will convert to Class A shares when they have been outstanding approximately eight years. Class D shares are subject to a reduced front-end sales charge, a contingent deferred sales charge on redemptions made within one year after purchase and a continuing service and distribution fee. The following significant accounting policies are consistently followed by the Fund in the preparation of its financial statements and conform to generally accepted accounting principles. SECURITY VALUATION AND TRANSACTIONS: The Fund values its portfolio securities utilizing the amortized cost valuation method. Security transactions are accounted for on the date the securities are purchased or sold. Cost is determined and gains and losses are based upon the specific identification method for both financial statement and federal income tax purposes. DETERMINATION OF CLASS NET ASSET VALUES AND FINANCIAL HIGHLIGHTS: All income, expenses (other than the Class B and Class D service and distribution fees), realized and unrealized gains (losses) are allocated to each class proportionately on a daily basis for purposes of determining the net asset value of each class. Class B and Class D per share data and ratios are calculated by adjusting the expense and net investment income per share data and ratios for the Fund for the entire period by the service and distribution fees applicable to Class B and Class D shares only. FEDERAL INCOME TAXES: Consistent with the Fund's policy to qualify as a regulated investment company and to distribute all of its taxable income, no federal income tax has been accrued. DISTRIBUTIONS TO SHAREHOLDERS: The Fund declares and records distributions daily and pays monthly. OTHER: Interest income, including discount accretion and premium amortization, is recorded daily on the accrual basis. The Fund's custodian takes possession through the federal book-entry system of securities collateralizing repurchase agreements. Collateral is marked-to-market daily to ensure that the market value of the underlying assets remains sufficient to protect the Fund. The Fund may experience costs and delays in liquidating the collateral if the issuer defaults or enters bankruptcy. 9 Notes to Financial Statements/August 31, 1995 - -------------------------------------------------------------------------------- NOTE 2. FEES AND COMPENSATION PAID TO AFFILIATES - -------------------------------------------------------------------------------- MANAGEMENT FEE: Colonial Management Associates, Inc. (the Adviser) is the investment Adviser of the Fund, and through October 16, 1994, furnished accounting and other services and office facilities for a monthly fee equal to 0.50% annually of the Fund's average net assets. The Adviser had voluntarily waived a portion of its management fee and the Fund paid a fee equal to 0.30% of its average net assets. Effective October 17, 1994, and until further notice, the Adviser changed the monthly fee to 0.30% annually, of the Fund's average net assets and discontinued the voluntary waiver. BOOKKEEPING FEE: The Adviser provides bookkeeping and pricing services for $27,000 per year plus 0.035% of the Fund's average net assets over $50 million. TRANSFER AGENT: Colonial Investors Service Center, Inc., (the Transfer Agent), an affiliate of the Adviser, provides shareholder services for a monthly fee equal to 0.20% annually of the Fund's average net assets and receives a reimbursement for certain out-of-pocket expenses. UNDERWRITING DISCOUNTS, SERVICE AND DISTRIBUTION FEES: Colonial Investment Services Inc., (the Distributor), an affiliate of the Adviser, is the Fund's principal underwriter. During the year ended August 31, 1995, the Distributor received contingent deferred sales charges (CDSC) of $638,693 and $167, on Class B and Class D share redemptions, respectively. The Fund has adopted a 12b-1 plan which requires it to pay the Distributor a service fee equal to 0.25% annually of Class B and Class D net assets, as of the 20th of each month. The plan also requires the payment of a distribution fee to the Distributor equal to 0.75% annually of the average net assets attributable to Class B shares and Class D shares. The CDSC and the fees received from the 12b-1 plan are used principally as repayment to the Distributor for amounts paid by the Distributor to dealers who sold such shares. EXPENSE LIMITS: The Adviser has agreed, until further notice, to waive fees and bear certain Fund expenses to the extent that total expenses (exclusive of service and distribution fees, brokerage commissions, interest, taxes and extraordinary expenses, if any) exceed 1.00% annually of the Fund's average net assets. For the year ended August 31, 1995, the Fund's operating expenses did not exceed the 1.00% expense limit. OTHER: The Fund pays no compensation to its officers, all of whom are employees of the Adviser. The Fund's Trustees may participate in a deferred compensation plan which may be terminated at any time. Obligations of the plan will be paid solely out of the Fund's assets. 10 Notes to Financial Statements/August 31, 1995 - -------------------------------------------------------------------------------- NOTE 3. PORTFOLIO INFORMATION - -------------------------------------------------------------------------------- INVESTMENT ACTIVITY: During the year ended August 31, 1995, purchases and sales (including maturities) of short-term obligations (excluding repurchase agreements) were $531,016,644 and $554,380,000, respectively, all of which were U.S. government securities. NOTE 4. RESULTS OF SPECIAL SHAREHOLDERS MEETING (unaudited) - -------------------------------------------------------------------------------- On February 15, 1995, a special meeting of shareholders was held and a new Management Agreement between the Trust, with respect to the Fund, and Colonial Management Associates, Inc. was approved and became effective upon the merger of The Colonial Group, Inc. with Apple Merger Corporation, a subsidiary of Liberty Financial Companies, Inc. The merger occurred on March 24, 1995. Of the shares of beneficial interest outstanding on December 9, 1994, 112,325,654 voted for the new Management Agreement, 2,099,269 voted against, 7,155,554 abstained, and 245,339 were broker non-votes. 11 FINANCIAL HIGHLIGHTS Selected data for a share of each class outstanding throughout each period are as follows:
Year ended August 31 ----------------------------------------------------------- 1995 1994 Class A Class B Class D Class A Class B Class D (b) ------- ------- ------- ------- ------- ------- Net asset value - Beginning of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 ------- ------- ------- ------- ------- ------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (a) 0.050 0.040 0.040 0.028 0.018 0.005 ------- ------- ------- ------- ------- ------- LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS: From net investment income (0.050) (0.040) (0.040) (0.028) (0.018) (0.005) ------- ------- ------- ------- ------- ------- Net asset value - End of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 ------- ------- ------- ------- ------- ------- Total return (e)(f) 5.14% 4.08% 4.07% 2.85% 1.82% 0.45% (g) ------- ------- ------- ------- ------- ------- RATIOS TO AVERAGE NET ASSETS Expenses 0.69% 1.69% 1.69% 0.73% 1.73% 1.73% (h) Fees and expenses waived or borne by the adviser 0.04% 0.04% 0.04% 0.20% 0.20% 0.20% (h) Net investment income 4.96% 3.96% 3.96% 3.01% 2.01% 2.01% (h) Net assets at end of period (000) 83,086 $55,441 $ 625 $97,115 $54,535 $ 518 (a) Net of fees and expenses waived or borne by the adviser which amounted to 0.000 $ 0.000 $ 0.000 $ 0.002 $ 0.002 $ 0.002
(b) Class D shares were initially offered on July 1, 1994. Per share amounts reflect activity from that date. (c) The Fund changed its fiscal year end from December 31 to August 31 in 1992. (d) Class B shares were initially offered on June 8, 1992. Per share amounts reflect activity from that date. (e) Total return at net asset value assuming all distributions reinvested and no initial sales charge or contingent deferred sales charge. (f) Had the adviser not waived or reimbursed a portion of expenses, total return would have been reduced. (g) Not annualized. (h) Annualized. 12 FINANCIAL HIGHLIGHTS - CONT.
Year ended Period ended Year ended August 31 August 31 December 31 ----------------- -------------------- ----------- 1993 1992 (c) 1991 Class A Class B Class A Class B (d) Class A ------- ------- ------- ------- ------- Net asset value - Beginning of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 ------- ------- ------- ------- ------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (a) 0.023 0.013 0.022 0.004 0.053 ------- ------- ------- ------- ------- LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS: From net investment income (0.023) (0.013) (0.022) (0.004) (0.053) ------- ------- ------- ------- ------- Net asset value - End of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 ------- ------- ------- ------- ------- Total return (e)(f) 2.28% 1.27% 2.18% (g) 0.43% (g) 5.38% ------- ------- ------- ------- ------- RATIOS TO AVERAGE NET ASSETS Expenses 0.88% 1.88% 1.00% (h) 2.00% (h) 0.85% Fees and expenses waived or borne by the adviser 0.20% 0.20% 0.38% (h) 0.38% (h) 0.20% Net investment income 2.26% 1.26% 3.23% (h) 2.23% (h) 5.32% Net assets at end of period (000) $44,693 $10,890 $47,885 $14,096 $56,198 (a) Net of fees and expenses waived or borne by the adviser which amounted to $ 0.002 $ 0.002 $ 0.003 $ 0.001 $ 0.002
- -------------------------------------------------------------------------------- State Tax Information (unaudited) An average of 19% of the Fund's investments as of the end of each quarter were in direct obligations of the U.S. Treasury. Approximately 23% of the Fund's distributions (18% of gross income) was derived from interest on direct investments in U.S. Treasury bonds, notes, and bills. - -------------------------------------------------------------------------------- 13 REPORT OF INDEPENDENT ACCOUNTANTS T0 THE TRUSTEES OF COLONIAL TRUST II AND THE SHAREHOLDERS OF COLONIAL GOVERNMENT MONEY MARKET FUND In our opinion, the accompanying statement of assets and liabilities, including the investment portfolio, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Colonial Government Money Market Fund (a series of Colonial Trust II) at August 31, 1995, the results of its operations, the changes in its net assets and the financial highlights for the periods indicated, in conformity with generally accepted accounting principles. These financial statements and the financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fund's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with generally accepted auditing standards which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of portfolio positions at August 31, 1995 by correspondence with the custodian, provide a reasonable basis for the opinion expressed above. PRICE WATERHOUSE LLP Boston, Massachusetts October 11, 1995 14 IMPORTANT INFORMATION ABOUT THIS REPORT The Transfer Agent for Colonial Government Money Market Fund is: Colonial Investors Service Center, Inc. P.O. Box 1722 Boston, MA 02105-1722 1-800-345-6611 Colonial Government Money Market Fund mails one shareholder report to each shareholder address. If you would like more than one report, please call our Literature Department at 1-800-248-2828 and additional reports will be sent to you. This report has been prepared for shareholders of Colonial Government Money Market Fund. This report may also be used as sales literature when preceded or accompanied by the current prospectus which provides details of sales charges, investment objectives, and operating policies of the Fund. 15 [LOGO] COLONIAL MUTUAL FUNDS Earning Your Trust for More Than 60 Years TRUSTEES ROBERT J. BIRNBAUM Trustee (formerly Special Counsel, Dechert, Price & Rhoads; President and Chief Operating Officer, New York Stock Exchange, Inc.) TOM BLEASDALE Trustee (formerly Chairman of the Board and Chief Executive Officer, Shore Bank & Trust Company) LORA S. COLLINS Attorney, Kramer, Levin, Naftalis, Nessen, Kamin & Frankel JAMES E. GRINNELL Private Investor (formerly Senior Vice President-Operations, The Rockport Company) WILLIAM D. IRELAND, JR. Trustee (formerly Chairman of the Board, Bank of New England-Worcester) RICHARD W. LOWRY Private Investor (formerly Chairman and Chief Executive Officer, U.S. Plywood Corporation) WILLIAM E. MAYER Dean, College of Business and Management, University of Maryland (formerly Dean, Simon Graduate School of Business, University of Rochester; Chairman and Chief Executive Officer, C.S. First Boston Merchant Bank; and President and Chief Executive Officer, The First Boston Corporation) JOHN A. MCNEICE, JR. Chairman of the Board and Director, The Colonial Group, Inc. and Colonial Management Associates, Inc. (formerly Chief Executive Officer, The Colonial Group, Inc. and Colonial Management Associates, Inc.) JAMES L. MOODY, JR. Chairman of the Board, Hannaford Bros. Co. (formerly Chief Executive Officer, Hannaford Bros. Co.) JOHN J. NEUHAUSER Dean, Boston College School of Management GEORGE L. SHINN Financial Consultant (formerly Chairman, Chief Executive Officer and Consultant, The First Boston Corporation) ROBERT L. SULLIVAN Management Consultant (formerly Management Consultant, Saatchi and Saatchi Consulting Ltd. and Principal and International Practice Director, Management Consulting, Peat Marwick Main & Co.) SINCLAIR WEEKS, JR. Chairman of the Board, Reed & Barton Corporation COLONIAL INVESTMENT SERVICES, INC. (C)1995 One Financial Center, Boston, Massachusetts 02111-2621, 617-426-3750 MM-02/305B-0895 [LOGO] Printed on recycled paper -----END PRIVACY-ENHANCED MESSAGE-----