-----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, G5w84Uc0eqcPbSTPIEWtS3vuYjbaMgWsLQ2UG1Fy95kM3ZnjuUAQmMykmsXNjfrp W+pDuxm7HjW7E1/VzHdpSw== 0000891804-03-000629.txt : 20030306 0000891804-03-000629.hdr.sgml : 20030306 20030306171043 ACCESSION NUMBER: 0000891804-03-000629 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20021231 FILED AS OF DATE: 20030306 EFFECTIVENESS DATE: 20030306 FILER: COMPANY DATA: COMPANY CONFORMED NAME: COLUMBIA SPECIAL FUND INC CENTRAL INDEX KEY: 0000773599 IRS NUMBER: 930896403 STATE OF INCORPORATION: OR FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-04362 FILM NUMBER: 03595051 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 file001.txt COLUMBIA SPECIAL FUND Columbia Funds Annual Report December 31, 2002 Columbia Common Stock Fund Columbia Growth Fund [PHOTO OMITTED] Columbia International Stock Fund Columbia Special Fund Columbia Small Cap Fund Columbia Real Estate Equity Fund Columbia Technology Fund Columbia Strategic Value Fund Columbia Balanced Fund Columbia Short Term Bond Fund Columbia Fixed Income Securities Fund Columbia National Municipal Bond Fund Columbia Oregon Municipal Bond Fund Columbia High Yield Fund Columbia Daily Income Company - -------------------------- Not FDIC May Lose Value Insured ----------------- No Bank Guarantee - -------------------------- TABLE OF CONTENTS - -------------------------------------------------------------------------------- COLUMBIA FUNDS ANNUAL REPORT DECEMBER 31, 2002 INTRODUCTION 1 TO OUR SHAREHOLDERS - -------------------------------------------------------------------------------- INVESTMENT 4 COLUMBIA COMMON STOCK FUND REVIEWS 6 COLUMBIA GROWTH FUND 8 COLUMBIA INTERNATIONAL STOCK FUND 10 COLUMBIA SPECIAL FUND 12 COLUMBIA SMALL CAP FUND 14 COLUMBIA REAL ESTATE EQUITY FUND 16 COLUMBIA TECHNOLOGY FUND 18 COLUMBIA STRATEGIC VALUE FUND 20 COLUMBIA BALANCED FUND 22 COLUMBIA SHORT TERM BOND FUND 24 COLUMBIA FIXED INCOME SECURITIES FUND 26 COLUMBIA NATIONAL MUNICIPAL BOND FUND 28 COLUMBIA OREGON MUNICIPAL BOND FUND 30 COLUMBIA HIGH YIELD FUND 32 COLUMBIA DAILY INCOME COMPANY - -------------------------------------------------------------------------------- FINANCIAL 34 FINANCIAL HIGHLIGHTS INFORMATION 72 SCHEDULES OF INVESTMENTS 122 STATEMENTS OF ASSETS AND LIABILITIES 126 STATEMENTS OF OPERATIONS 130 STATEMENTS OF CHANGES IN NET ASSETS 136 NOTES TO FINANCIAL STATEMENTS 157 REPORT OF INDEPENDENT ACCOUNTANTS 158 DIRECTORS AND OFFICERS 160 UNAUDITED INFORMATION COLUMBIA FUNDS COLUMBIA FINANCIAL CENTER 1301 SW FIFTH AVENUE PORTLAND, OR 97201-5601 1-800-547-1707 LIBERTYFUNDS.COM TO OUR SHAREHOLDERS - -------------------------------------------------------------------------------- We are pleased to present the Columbia Funds 2002 annual report. In the following pages, you will find detailed financial information as well as a discussion of investment activity and management strategy for the 15 Columbia funds for the 12 months ended December 31, 2002. But first, we'd like to offer an overview of the market and economic climate in which the funds performed. Uncertainty, scandal and weak profits restrained economy and markets Early in 2002, signs of robust growth lifted investor hopes of better times for the US economy and stock markets. But the good news was short-lived. Scandals and bankruptcies, disappointing earnings reports, terrorist fears and the mounting threat of war in Iraq unsettled investors, who retreated to the highest quality bonds. Stocks headed downward late in the first quarter. The decline sharpened, as the economy failed to stage a convincing recovery, and stocks did not reverse course with any conviction until October. A fourth-quarter rally was helped by the November decision of the Federal Reserve Board to cut a key short-term interest rate by one half of 1%. This cut was part of the Fed's effort to avert a double-dip recession. In fact, economic growth for 2002 was expected to average 3.0%, despite expectations for a relatively weak fourth quarter. Free-spending American consumers accounted for nearly all the economy's growth during the year. Retail and auto sales continued strong into the fourth quarter, buoyed by incentives and discounts. Homebuyers refinanced mortgages at 30-year-low interest rates and pumped the added disposable income back into the economy. Business spending failed to increase in any meaningful way, however, and the jobless rate climbed to 6.0%. Outside the United States most major economies faltered while emerging economies in Asia and some in Eastern Europe fared better. A weak US dollar against both the yen and the euro helped American investors in foreign markets. However, a weak dollar could result in higher prices for consumers in the year ahead. The biggest disappointment, perhaps, was Japan's failure to make any meaningful progress in solving its decade-old banking problems. As a result, Japan experienced marginal economic growth during the year. Another disappointing year for the equity markets The US stock market tried to sustain a rebound in the first and second quarters, but each attempt was cut short. Finally, after sinking to a four-year low in early October, stock prices gained nearly 20% in the fourth quarter before that rally was curtailed in December. Although most major stock market indexes generated positive returns in the fourth quarter, these returns weren't enough to offset declines recorded earlier in the year. 1 TO OUR SHAREHOLDERS - -------------------------------------------------------------------------------- For the year, the S&P 500 Index, a broad measure of common stock performance, returned negative 22.09%. The Nasdaq Composite, which is heavily weighted toward technology stocks, returned negative 31.25%. Mid-cap stocks outperformed both large and small-cap stocks and value outperformed growth investments for a second year in a row. No major industry sector recorded a gain for the year, as measured by Standard & Poor's. The best performing sectors were consumer staples, which includes food and drug retailers, beverages and personal care products, and the industrial materials sector. Real estate remained one of the few bright spots in the equity markets. This sector continued to benefit from low interest rates as the NAREIT Index returned 3.81% for the year. International equity markets fared only slightly better than the US markets. The MSCI EAFE Index, a measure of stock market performance in major developed countries, returned negative 15.94%. Another good year for bonds The year began with optimism about stocks and the economy, and expectations that interest rates would move higher. All these factors could have translated into trouble for the US bond market. However, the prognosticators were off the mark and bonds returned solid gains for the year. Interest rates moved up in the first quarter, but then declined until the fourth quarter. In general, high quality bonds outperformed lower quality bonds, and long-term bonds outperformed short-term bonds. However, all investment-grade bond market sectors delivered positive performance for the year. Emerging markets and foreign bonds also gained ground. Although high-yield bonds rallied in the fourth quarter, this was the only bond sector to record negative performance for the year. Brighter prospects for 2003 The US economy appears to be on more solid ground entering the new year. The Fed is not expected to raise interest rates during the first half of the year, which should be good news for bonds. A stronger economy should make corporate and high-yield bonds more attractive; they could even outperform the higher quality bonds that have led the market for the past three years. Finally, if companies deliver on Wall Street's consensus profit growth expectations of 14%, stocks could rally with some conviction. Of course, the outlook for the financial markets around the world continues to be clouded by geopolitical tensions and uncertainties remain high. Given the volatility associated with this environment, we believe it is especially important for shareholders to diversify their portfolio and adhere to their long-term investment strategies. 2 TO OUR SHAREHOLDERS - -------------------------------------------------------------------------------- Visit us online You can find the Columbia investment team's latest views on the market at libertyfunds.com. On the website, you can also find out about recent developments, get secure access to your personal account information and expand your investment skills with educational articles and easy-to-use planning calculators. If you have any questions about the website or about your account, please contact a shareholder services representative at 800-338-2550 (from 5:00 a.m. to 5:00 p.m., Pacific time.) Thank you for your continued confidence in Columbia Funds. We look forward to serving you in the months and years ahead. Sincerely, /s/ Jeff B. Curtis /s/ Richard J. Johnson Jeff B. Curtis Richard J. Johnson Chief Operations Officer - West Coast Chief Investment Officer - West Coast Columbia Management Company Columbia Management Company December 31, 2002 3 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- COLUMBIA COMMON STOCK FUND - -------------------------------------------------------------------------------- PERFORMANCE OF A $10,000 INVESTMENT 12/31/92 - 12/31/02 without with sales charge sales charge ------------ ------------ Class A $ 21,777 $ 20,520 Class B 21,749 21,749 Class D 21,764 21,549 Class Z 21,793 n/a Line Chart: ----------------------------- GROWTH OF $10,000 OVER 10 YEARS Class A shares Class A shares with sales charge without sales charge S&P 500 Index 12/31/92 9425 10000 10000 9666 10256 10084 9801 10399 10221.1 10116 10733 10436.8 9766 10362 10184.2 10123 10740 10456.2 10264 10891 10486.5 10251 10876 10444.5 10710 11364 10840.4 10784 11442 10756.9 10900 11565 10979.6 10731 11385 10875.3 10974 11644 11006.9 11325 12016 11381.1 11117 11795 11072.7 10693 11346 10591 10852 11514 10726.6 11060 11735 10901.4 10693 11345 10634.3 11120 11798 10983.1 11466 12166 11432.3 11184 11867 11153.4 11243 11928 11403.2 10966 11635 10988.2 11198 11882 11150.8 11295 11984 11439.6 11760 12478 11884.6 12004 12736 12235.2 12137 12877 12594.9 12530 13294 13097.4 12715 13491 13401.3 13200 14005 13844.9 13319 14131 13879.5 13780 14620 14465.2 13585 14414 14413.1 14198 15064 15044.4 14651 15545 15334.8 14926 15837 15856.2 15155 16079 16003.6 15470 16414 16157.3 15683 16640 16394.8 16006 16983 16816.1 16109 17092 16880 15357 16293 16133.9 15982 16957 16474.3 16608 17621 17400.2 16663 17679 17880.5 17791 18876 19230.4 17682 18761 18849.7 18269 19384 20025.9 18443 19568 20184.1 18174 19283 19356.5 18681 19821 20510.2 19768 20974 21763.4 20579 21834 22731.8 22048 23393 24539 21402 22708 23164.8 22316 23677 24431.9 21472 22782 23615.9 21805 23135 24709.3 22167 23519 25134.3 22298 23658 25410.8 23555 24992 27242.9 24672 26177 28637.8 24692 26198 28929.9 24208 25685 28432.3 25641 27205 29586.6 25348 26895 29273 21582 22898 25043.1 22702 24087 26648.3 24077 25546 28812.2 25585 27146 30558.2 27992 29700 32318.3 29277 31063 33669.2 28542 30284 32622.1 30046 31879 33927 30518 32380 35240 29703 31515 34408.3 31839 33781 36311.1 30862 32744 35181.8 30300 32148 35005.9 29736 31550 34046.8 31506 33428 36201.9 32630 34621 36936.8 35205 37353 39108.7 33864 35929 37145.4 35228 37377 36443.4 38857 41227 40007.6 37641 39937 38803.3 36033 38232 38007.9 37655 39952 38942.9 37203 39473 38335.3 39506 41916 40716 36547 38776 38566.2 35388 37547 38404.2 32561 34547 35377.9 33189 35214 35551.3 33816 35880 36813.4 30147 31987 33459.7 28224 29946 31341.7 30420 32276 33773.8 30557 32421 34000.1 29726 31539 33173.9 29140 30918 32848.8 27150 28806 30795.7 24546 26044 28310.5 25010 26536 28851.2 26973 28619 31064.1 27351 29019 31337.5 26612 28236 30880 26064 27654 30284 26940 28583 31422.7 25132 26666 29518.4 25160 26695 29303 23270 24690 27216.6 21120 22409 25096.4 21340 22642 25259.5 19093 20258 22516.4 20668 21929 24495.5 22038 23383 25935.9 12/31/02 20520 21777 24413.4 Mutual fund performance changes over time. Please visit libertyfunds.com for daily performance updates. Past performance is no guarantee of future investment results. The principal value and investment returns will fluctuate, resulting in a gain or loss on sale. The above illustration assumes a $10,000 investment made on December 31, 1992, and reinvestment of income and capital gains distributions. The S&P 500 Index tracks the performance of 500 large-capitalization US stocks. Unlike the fund, indexes are not investments, do not incur fees, and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index. - -------------------------------------------------------------------------------- Stocks deliver more bad news Stock prices continued to tumble in 2002, marking the third consecutive year of declines and the sharpest downturn since the 1970s. Most of the damage came in the second and third quarters amid a weak economic recovery, the growing possibility of war with Iraq and a rash of corporate accounting scandals. Large companies with diversified businesses and complex balance sheets took the hardest hits. For the 12-month period ended December 31, 2002, the fund's class A shares returned negative 24.98%, without a sales charge. By comparison, the S&P 500 Index returned negative 22.09% over the same period. More defensive sectors rally For most of the year, market volatility, softening consumer confidence, and uncertainty about corporate America's profit outlook led investors to non-economically sensitive sectors. Consumer staples, including food and beverage stocks, and select areas of health care held up fairly well, as did more defensive bank stocks with high dividend yields. Many financial services companies, however, suffered as merger and acquisition activity slowed. Large pharmaceutical companies also sank amid concerns over drug pricing, patent expirations and the lack of new blockbuster products. By the fourth quarter, relatively cheap valuations triggered a rally, particularly among beaten-down technology names. In the end, these gains were modest and could not offset earlier losses. Cyclical bias hurts performance With the expectation that low interest rates would help jump-start the economy, we weighted the fund toward companies in sectors that tend to be sensitive to the economy. We favored industrials, which have been in a recession since 2000, as well as consumer cyclicals, media and technology stocks. Unfortunately, all of these industries posted steep AVERAGE ANNUAL TOTAL RETURN (%) As of December 31, 2002
Class A Class B Class D Class Z - ------------------------------------------------------------------------------------------------------------------------------------ Public offering date 11/1/02 11/1/02 11/1/02 10/1/91 - ------------------------------------------------------------------------------------------------------------------------------------ without with without with without with without sales charge sales charge sales charge sales charge sales charge sales charge sales charge - ------------------------------------------------------------------------------------------------------------------------------------ 1-year -24.98 -29.30 -25.07 -28.81 -25.02 -26.51 -24.92 - ------------------------------------------------------------------------------------------------------------------------------------ 5-year -1.54 -2.69 -1.56 -1.85 -1.55 -1.74 -1.52 - ------------------------------------------------------------------------------------------------------------------------------------ 10-year 8.09 7.45 8.08 8.08 8.09 7.98 8.10 - ------------------------------------------------------------------------------------------------------------------------------------
Past performance is no guarantee of future investment results. The principal value and investment returns will fluctuate, resulting in a gain or loss on sale. All results shown assume reinvestment of distributions, if any. The "with sales charge" returns include the maximum 5.75% charge for class A shares, the appropriate class B contingent deferred sales charge (CDSC) for the holding period after purchase as follows: through first year-5%, second year-4%, third year-3%, fourth year-3%, fifth year-2%, sixth year-1%, thereafter-0%, and the class D sales charge of 1% which also carries a CDSC of 1% that is applied to shares sold within the first year after they are purchased. Performance for different share classes will vary based on differences in sales charges and fees associated with each class. Performance results reflect any voluntary waivers or reimbursement of fund expenses by the advisor or its affiliates. Absent these waivers or reimbursement arrangements, performance results would have been lower. Classes A, B, and D (newer class shares) share performance information includes returns of the fund's class Z shares (the oldest existing fund class) for periods prior to the inception of the newer class shares. These class Z share returns are not restated to reflect any expense differential (e.g., Rule 12b-1 fees) between class Z shares and the newer class shares. Had the expense differential been reflected, the returns for the periods prior to the inception of classes A, B and D would have been lower. 4 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- declines as the economy hit a soft patch. Our slightly above-average stake in advertising-sensitive media companies, such as AOL Time Warner (1.3% of net assets), particularly hurt performance, as did our below-average position in more expensive consumer staples stocks, including food and beverage companies.(1) In addition, many of our technology investments, including Micron Technology (0.2% of assets), posted steep losses as corporations postponed capital spending. In the finance area, we concentrated on money center banks and consumer credit companies. Among our largest investments was Citigroup (3.7% of net assets), which was hurt by ties to Enron and WorldCom (the fund did not own shares of either company during the period), weak brokerage operations and headline news regarding analyst recommendations. Bank of America (2.4% of net assets), however, climbed higher after delivering on earnings. We took advantage of the decline in stock prices by adding to investments such as American International Group (2.8% of net assets), a global insurer that came under pressure largely because of its size and complexity. Outlook is brighter for 2003 We are cautiously optimistic that as 2003 unfolds we will see improvements in the economy, earnings and capital spending. Leading indicators have begun to turn positive. Companies have restructured and cut costs. Corporate profits have started showing signs of picking up, and fiscal stimulus measures are under consideration. Our expectation is that many of the past year's problems--including high energy prices, geopolitical tensions, and corporate credibility issues--will be resolved this year. As uncertainties dissipate, we think investors are likely to regain confidence in the market. Our strategy will be to take advantage of market swings, while increasing the fund's cyclical bias in anticipation of better economic growth ahead. Scott J. Drysdale, Ron F. Gibbs, Ajay Mehra, and Guy W. Pope On behalf of the Columbia Common Stock Fund Team An investment in the fund may present certain risks, including stock market fluctuations that occur in response to economic and business developments; and a greater degree of social, political and economic volatility with international investing. The fund invests in foreign securities, which have special risks, including political or economic instability and higher transaction costs; different regulations, accounting standards, trading practices and levels of information; and currency exchange rate fluctuations. - -------------------------------------------------------------------------------- TOP TEN HOLDINGS % of net assets December 31, 2002 Microsoft 4.4 Citigroup 3.7 Wal-Mart Stores 3.6 American International Group 2.8 General Electric 2.4 Bank of America 2.4 SBC Communications 2.1 Pfizer 2.0 American Express 2.0 Pharmacia 1.9 Because the fund is actively managed, there can be no guarantee the fund will continue to maintain these holdings in the future. ----------------------------- TOP FIVE SECTORS % of net assets December 31, 2002 Financials 21.6 Consumer discretionary 16.8 Information technology 14.0 Health care 12.5 Industrials 10.2 Because the fund is actively managed, there can be no guarantee the fund will continue to maintain these sectors in the future. - ---------- (1) Holdings are disclosed as of December 31, 2002 and are subject to change. 5 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- COLUMBIA GROWTH FUND - -------------------------------------------------------------------------------- PERFORMANCE OF A $10,000 INVESTMENT 12/31/92 - 12/31/02 without sales charge with sales charge -------------------- ----------------- Class A $ 17,996 $ 16,959 Class B 17,987 17,987 Class D 17,987 17,810 Class G 17,996 17,996 Class Z 18,013 n/a Line Chart: ----------------------------- GROWTH OF $10,000 OVER 10 YEARS
Class A shares Class A shares Russell 1000 with sales charge without sales charge Growth Index S&P 500 Index 12/31/92 9425 10000 10000 10000 9529.62 10111 9885 10084 9529.62 10111 9726.84 10221.1 9770.72 10366.8 9914.57 10436.8 9281.2 9847.43 9516.99 10184.2 9771.25 10367.4 9850.09 10456.2 9843.56 10444.1 9760.45 10486.5 9778.59 10375.2 9585.74 10444.5 10268.5 10895 9979.71 10840.4 10409.2 11044.2 9905.86 10756.9 10603.8 11250.7 10181.2 10979.6 10345.1 10976.2 10113 10875.3 10653.4 11303.3 10287 11006.9 10992.2 11662.8 10525.6 11381.1 10939.4 11606.8 10333 11072.7 10289.6 10917.3 9833.93 10591 10394.5 11028.7 9879.17 10726.6 10426.8 11062.9 10029.3 10901.4 10034.7 10646.9 9732.46 10634.3 10459.2 11097.3 10065.3 10983.1 10858.7 11521.2 10626 11432.3 10596 11242.4 10482.5 11153.4 10794.1 11452.6 10728.8 11403.2 10439 11075.8 10384.4 10988.2 10586.2 11232 10558.9 11150.8 10611.6 11259 10784.9 11439.6 11127.3 11806.1 11236.7 11884.6 11527.9 12231.2 11564.9 12235.2 11689.3 12402.4 11818.1 12594.9 11953.4 12682.7 12229.4 13097.4 12405.3 13162.1 12701.5 13401.3 12895.3 13682 13229.8 13844.9 13121 13921.4 13244.4 13879.5 13466 14287.6 13855 14465.2 13121.3 13921.8 13864.7 14413.1 13940.1 14790.5 14404 15044.4 14078.1 14937 14486.1 15334.8 14224.5 15092.3 14969.9 15856.2 14876 15783.5 15243.9 16003.6 14823.9 15728.3 15263.7 16157.3 15314.6 16248.9 15665.1 16394.8 15758.7 16720.1 16211.8 16816.1 15754 16715.1 16234.5 16880 14574 15463.1 15283.2 16133.9 15069.5 15988.9 15677.5 16474.3 15951.1 16924.2 16818.8 17400.2 16233.4 17223.8 16919.7 17880.5 17223.7 18274.4 18190.4 19230.4 17004.9 18042.4 17833.9 18849.7 17601.8 18675.6 19084 20025.9 17617.6 18692.5 18954.3 20184.1 16720.9 17741 17928.8 19356.5 17550.3 18621 19119.3 20510.2 18745.4 19889 20499.7 21763.4 19525.2 20716.4 21319.7 22731.8 21257.1 22554 23204.4 24539 20477 21726.2 21846.9 23164.8 21289.9 22588.8 22921.8 24431.9 20753.4 22019.5 22073.7 23615.9 21328.3 22629.5 23011.8 24709.3 21477.6 22787.9 23269.5 25134.3 22053.2 23398.6 23965.3 25410.8 23674.1 25118.4 25767.5 27242.9 24793.9 26306.5 26795.6 28637.8 24868.3 26385.4 27165.4 28929.9 24268.9 25749.5 26393.9 28432.3 26108.5 27701.3 28009.2 29586.6 25727.3 27296.9 27824.4 29273 21492.6 22803.8 23647.9 25043.1 22294.3 23654.4 25464.1 26648.3 23545 24981.4 27511.4 28812.2 25096.6 26627.7 29605 30558.2 28000.3 29708.5 32275.4 32318.3 29764.3 31580.2 34169.9 33669.2 28776.1 30531.7 32608.4 32622.1 30522.9 32385 34326.8 33927 30580.8 32446.5 34371.5 35240 29816.3 31635.4 33316.3 34408.3 32076.4 34033.3 35648.4 36311.1 30956.9 32845.6 34514.8 35181.8 30108.7 31945.6 35077.4 35005.9 29548.7 31351.4 34340.7 34046.8 31203.4 33107.1 36933.5 36201.9 32704.3 34699.5 38927.9 36936.8 35287.9 37440.8 42976.4 39108.7 34084.6 36164.1 40960.8 37145.4 36017.2 38214.6 42963.8 36443.4 39835 42265.3 46040 40007.6 38209.8 40540.9 43848.5 38803.3 35798.7 37982.7 41638.5 38007.9 38974.1 41351.8 44794.7 38942.9 38763.6 41128.5 42926.8 38335.3 41888 44443.5 46811.6 40716 38222.8 40554.7 42383.3 38566.2 35956.2 38149.8 40378.5 38404.2 31691.8 33625.2 34426.7 35377.9 32484.1 34465.8 33338.8 35551.3 34325.9 36420.1 35642.6 36813.4 28854.4 30614.7 29590.5 33459.7 25709.2 27277.7 26371 31341.7 28928 30692.9 29706.9 33773.8 28618.5 30364.5 29270.3 34000.1 27994.6 29702.5 28591.2 33173.9 26793.6 28428.3 27876.4 32848.8 24484 25977.8 25596.1 30795.7 21832.4 23164.4 23041.6 28310.5 23063.8 24470.8 24251.3 28851.2 25478.5 27032.9 26581.9 31064.1 25532 27089.7 26531.4 31337.5 24482.7 25976.3 26061.7 30880 23187.5 24602.2 24980.2 30284 24075.6 25544.4 25844.5 31422.7 22062.9 23408.9 23735.6 29518.4 21802.6 23132.7 23161.2 29303 19628.8 20826.4 21018.8 27216.6 17738.6 18820.8 19862.7 25096.4 18008.2 19106.9 19922.3 25259.5 16167.8 17154.1 17856.4 22516.4 17527.5 18596.8 19493.8 24495.5 18309.2 19426.2 20552.3 25935.9 12/31/02 16959 17996 19132.2 24413.4
Mutual fund performance changes over time. Please visit libertyfunds.com for daily performance updates. Past performance is no guarantee of future investment results. The principal value and investment returns will fluctuate, resulting in a gain or loss on sale. The above illustration assumes a $10,000 investment made on December 31,1992, and reinvestment of income and capital gains distributions. The S&P 500 Index tracks the performance of 500 large-capitalization US stocks. The Russell 1000 Growth Index is an unmanaged index that measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values (the Russell 1000 Index measures the performance of the 1000 largest US companies based on total market capitalization). Unlike the fund, indexes are not investments, do not incur fees, and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index. - -------------------------------------------------------------------------------- Stock prices tumbled for the third consecutive year, with large-cap growth stocks taking some of the hardest hits. Driven by a sluggish economy, weak corporate spending, deflation and corporate credibility concerns, the market over the past three years has posted its steepest decline since the 1970s. Despite a brief rally and improved economic data near year end, the S&P 500 Index returned negative 22.09% for the year ended December 31, 2002. For the same period, the fund's class A shares returned negative 33.56%, without a sales charge. Fund performance trailed the Russell 1000 Growth Index, which returned negative 27.88% during the period. Tyco, technology and health care disappoint Tyco was the source of the greatest damage to portfolio performance. A long-term holding of the fund, it had performed well in prior years and grew to 5.0% of total assets. Shocking and, obviously, unexpected revelations of executive mismanagement caused the stock to plunge. We sold most of our position at a substantial loss, but later reinvested at lower prices because we believe the company has viable businesses with earnings power that has been overly discounted by investors. Technology stocks also were weak performers for the year as corporations held back on spending for equipment and services. Among our biggest disappointments were Flextronics International (1.0% of net assets) and Sun Microsystems.(1) We eliminated our position in Sun Microsystems prior to the end of the period. In the health care sector, pharmaceutical stocks declined amid concerns about drug pricing, relatively few new drug approvals and an increase in patent expirations. Our investment in Bristol-Myers declined due to earnings problems and because an important new product failed to gain FDA approval. Prior to the end of period we sold our position in Brystol-Myers. We remain committed to Pfizer and Pharmacia (4.3% and 3.0% of net assets, respectively), which plan to merge. The AVERAGE ANNUAL TOTAL RETURN (%) As of December 31, 2002
Class A Class B Class D Class G Class Z - ------------------------------------------------------------------------------------------------------------------------------------ Public offering date 11/1/02 11/1/02 11/1/02 11/1/02 6/16/67 - ------------------------------------------------------------------------------------------------------------------------------------ without with without with without with without with without sales charge sales charge sales charge sales charge sales charge sales charge sales charge sales charge sales charge - ------------------------------------------------------------------------------------------------------------------------------------ 1-year -33.56 -37.37 -33.59 -36.91 -33.59 -34.92 -33.56 -36.88 -33.49 - ------------------------------------------------------------------------------------------------------------------------------------ 5-year -4.61 -5.74 -4.62 -4.92 -4.62 -4.81 -4.61 -5.06 -4.59 - ------------------------------------------------------------------------------------------------------------------------------------ 10-year 6.05 5.42 6.05 6.05 6.05 5.94 6.05 6.05 6.06 - ------------------------------------------------------------------------------------------------------------------------------------
Past performance is no guarantee of future investment results. The principal value and investment returns will fluctuate, resulting in a gain or loss on sale. All results shown assume reinvestment of distributions, if any. The "with sales charge" returns include the maximum 5.75% charge for class A shares, the appropriate class B contingent deferred sales charge (CDSC) for the holding period after purchase as follows: through the first year-5%, second year-4%, third year-3%, fourth year-3%, fifth year-2%, sixth year-1%, thereafter-0%, and the class D sales charge of 1% which also carries a CDSC of 1% that is applied to shares sold within the first year after they are purchased. For class G shares, the CDSC for the holding period after purchase is as follows: through first year-5%, second year-4%, third year-4%, fourth year-4%, fifth year-3%, sixth year-2%, seventh year-1%, thereafter-0%. Performance for different share classes will vary based on differences in sales charges and fees associated with each class. Performance results reflect any voluntary waivers or reimbursement of fund expenses by the advisor or its affiliates. Absent these waivers or reimbursement arrangements, performance results would have been lower. Classes A, B, D and G (newer class shares) share performance information includes returns of the fund's class Z shares (the oldest existing fund class) for periods prior to the inception of the newer class shares. These class Z share returns are not restated to reflect any expense differential (e.g., Rule 12b-1 fees) between class Z shares and the newer class shares. Had the expense differential been reflected, the returns for the periods prior to the inception of classes A, B, D and G would have been lower. 6 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- combined product breadth, sales force, R&D assets, and attractive valuation make the new company our favorite health care stock. Wyeth (2.1% of net assets) was another source of disappointing performance as a medical study pointed to increased risk of cancer for patients using Wyeth's hormone replacement therapy drugs. We thought the dramatic selloff was overdone considering the only slightly higher risk of cancer with prolonged usage and the lack of alternative therapies. The stock has rebounded nicely from its low. Strategy begins tilting toward cyclical stocks Our strategy through most of the year was to own a roughly equal mix of cyclical stocks that were likely to benefit from an economic recovery and stable growth stocks, such as Johnson & Johnson (3.0% of net assets), whose earnings are not sensitive to economic cycles. Toward year end, we began selling some stable growth stocks, including Anthem, an HMO (0.9% of net assets). In anticipation of stronger economic growth in 2003, we shifted the proceeds toward cyclical stocks that we believe have improving business prospects and low valuations (prices relative to other measures such as earnings). Our additions included telecommunications equipment companies, such as Cisco Systems and Alcatel (2.4% and 0.4% of net assets, respectively) which should also benefit from regulatory changes that ultimately provide incentives for large carriers to purchase new equipment. We also increased our positions in enterprise software companies such as Siebel Systems and SAP, as well as retailers Kohl's and Best Buy (0.9%, 0.9%, 2.0% and 0.9% of net assets, respectively). Signs point to an improving outlook We are optimistic that 2003 has the potential to be a reasonably good year for large-cap growth stocks. We believe branded pharmaceutical and technology stocks, two large sectors of the large-cap growth universe, bottomed in July 2002 and October 2002, respectively. Monetary and fiscal measures are in place to stimulate the economy, which bodes well for profit and earnings outlooks. As investors regain confidence in corporate America's earnings recovery--and in the fair and accurate reporting of those results--and as the Iraq situation nears predictive resolution, we believe that stocks--especially growth stocks--could benefit. We plan to maintain overweight positions in technology, which could benefit when corporations replace aging systems, and also in health care, where we expect the outlook for drug stocks to improve. Fewer patent expirations, more new branded drug approvals, and favorable government incentives have the potential to result in a profitable increase in branded drug consumption. Alexander S. Macmillan Portfolio Manager An investment in the fund may present certain risks, including stock market fluctuations that occur in response to economic and business developments. The fund invests in foreign securities, which have special risks, including political or economic instability and higher transaction costs; different regulations, accounting standards, trading practices and levels of information; and currency exchange rate fluctuations. - -------------------------------------------------------------------------------- TOP TEN HOLDINGS % of net assets December 31, 2002 Microsoft 5.9 Pfizer 4.3 General Electric 3.5 Wal-Mart Stores 3.1 Johnson & Johnson 3.0 Pharmacia 3.0 Citigroup 3.0 Cisco Systems 2.4 Dell Computer 2.3 Wyeth 2.1 Because the fund is actively managed, there can be no guarantee the fund will continue to maintain these holdings in the future. ----------------------------- TOP FIVE SECTORS % of net assets December 31, 2002 Health care 24.7 Information technology 24.5 Consumer discretionary 18.7 Financials 11.9 Consumer staples 9.6 Because the fund is actively managed, there can be no guarantee the fund will continue to maintain these sectors in the future. - ---------- (1) Holdings are disclosed as of December 31, 2002 and are subject to change. 7 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- COLUMBIA INTERNATIONAL STOCK FUND - -------------------------------------------------------------------------------- PERFORMANCE OF A $10,000 INVESTMENT 12/31/92 - 12/31/02 without with sales charge sales charge ------------ ------------ Class A $ 16,759 $ 15,791 Class B 16,709 16,709 Class D 16,709 16,542 Class Z 16,759 n/a Line Chart: ----------------------------- GROWTH OF $10,000 OVER 10 YEARS Class A shares Class A shares MSCI EAFE with sales charge without sales charge Index 12/31/92 9425 10000 10000 9302 9869 9999 9595 10181 10301 10069 10684 11199 10287 10915 12262 10438 11075 12521 10164 10784 12325 10628 11277 12757 11130 11809 13446 11063 11738 13143 11546 12251 13548 11168 11849 12364 12569 13336 13257 13229 14036 14377 13113 13913 14336 12521 13285 13719 12851 13635 14300 12734 13511 14219 12792 13573 14419 12841 13624 14558 13220 14026 14903 12774 13554 14433 13172 13975 14914 12493 13255 14196 12261 13009 14286 11324 12015 13737 11127 11806 13698 11551 12256 14552 11807 12528 15099 11669 12381 14920 11620 12329 14659 12390 13145 15572 12183 12926 14979 12479 13240 15271 12340 13093 14860 12587 13355 15273 12893 13679 15888 13060 13857 15954 13060 13857 16008 13544 14370 16347 14057 14915 16823 14283 15155 16513 14540 15427 16606 13790 14631 16121 14007 14861 16156 14362 15239 16586 14283 15155 16417 14836 15741 17070 15032 15949 16850 15021 15938 16260 15445 16387 16527 15596 16548 16587 15964 16938 16675 16886 17916 17760 17688 18767 18739 18218 19330 19042 16808 17834 17620 17958 19054 18606 16712 17731 17176 16636 17651 17000 16756 17778 17148 16890 17921 17932 17576 18648 19083 18175 19284 19671 18628 19764 19826 18885 20037 19729 18945 20101 19879 19055 20218 20080 16462 17466 17592 15594 16546 17052 16854 17883 18829 18029 19129 19793 18907 20061 20573 19482 20670 20511 19005 20164 20023 19495 20684 20858 20095 21321 21702 19386 20569 20585 20377 21620 21388 21208 22502 22023 21672 22995 22104 22125 23475 22328 23325 24748 23165 26261 27863 23969 29859 31681 26121 28432 30166 24462 30317 32166 25120 29820 31639 26095 27345 29013 24722 25225 26764 24119 26272 27875 25062 25069 26598 24012 25828 27404 24221 24232 25711 23042 23147 24559 22498 22100 23449 21654 23102 24511 22423 22977 24379 22412 21741 23067 20731 20238 21473 19348 21489 22800 20693 21160 22451 19962 20473 21722 19146 19801 21009 18797 19425 20610 18322 17502 18570 16466 17987 19084 16887 18409 19532 17510 18835 19984 17614 18004 19102 16678 18130 19236 16795 18975 20132 17784 19070 20233 17820 19259 20433 18046 18742 19886 17328 17131 18176 15618 16975 18010 15582 15236 16166 13908 15790 16753 14655 16293 17287 15321 12/31/02 15791 16759 14808 Mutual fund performance changes over time. Please visit libertyfunds.com for daily performance updates. Past performance is no guarantee of future investment results. The principal value and investment returns will fluctuate, resulting in a gain or loss on sale. The above illustration assumes a $10,000 investment made on December 31, 1992, and reinvestment of income and capital gains distributions. The Morgan Stanley Capital International (MSCI) EAFE Index is an unmanaged, market-weighted index composed of companies representative of the market structure of 20 developed market countries in Europe, Australia, and the Far East. Unlike the fund, indexes are not investments, do not incur fees and are not professionally managed. Securities in the fund may not match those in an index. It is not possible to invest directly in an index. - -------------------------------------------------------------------------------- For the 12-month period ended December 31, 2002, class A shares of the fund returned negative 16.10%, without a sales charge. The fund underperformed the MSCI EAFE Index, which returned negative 15.94% during the same period. The year was characterized by losses in all major international stock markets with European markets especially weak. The German market, for example, declined over 40%. Insurance companies, which are heavily weighted in the DAX--a broad measure of German stock market performance--accounted for much of this loss. The Japanese market, a strong performer in the first half of the year, declined 18% for the full year. Other Asian markets, however, turned in positive returns, led by Thailand's gain of 24%. International investors were aided by strong local currencies as the US dollar gave up some of its recent gains. The euro and the Japanese yen were up 18% and 11% respectively, which mitigated some local stock market losses. Shifts in country allocation aid performance Although the past year was a challenging one, some international markets performed considerably better than others, making allocations among different countries an important factor in overall performance. As the world's major economies appeared to be coming out of recession towards the end of 2001, we started 2002 with a large weighting in the Japanese market. The Japanese economy and stock market are especially sensitive to global growth trends. After delivering strong performance relative to many other major markets in the first six months, the Japanese market gave back some of those relative gains during the second half of the year. Global growth slowed during this time and it became apparent that political difficulties in Japan had stymied efforts at needed economic reform. AVERAGE ANNUAL TOTAL RETURN (%) As of December 31, 2002
A B D Z - ------------------------------------------------------------------------------------------------------------------------------------ Public offering date 11/1/02 11/1/02 11/1/02 10/1/92 - ------------------------------------------------------------------------------------------------------------------------------------ without with without with without with without sales charge sales charge sales charge sales charge sales charge sales charge sales charge - ------------------------------------------------------------------------------------------------------------------------------------ 1-year -16.10 -20.90 -16.35 -20.52 -16.35 -18.00 -16.10 - ------------------------------------------------------------------------------------------------------------------------------------ 5-year -1.17 -2.34 -1.23 -1.54 -1.23 -1.43 -1.17 - ------------------------------------------------------------------------------------------------------------------------------------ 10-year 5.30 4.67 5.27 5.27 5.27 5.16 5.30 - ------------------------------------------------------------------------------------------------------------------------------------
Past performance is no guarantee of future investment results. The principal value and investment returns will fluctuate, resulting in a gain or loss on sale. All results shown assume reinvestment of distributions, if any. The "with sales charge" returns include the maximum 5.75% charge for class A shares, the appropriate class B contingent deferred sales charge (CDSC) for the holding period after purchase as follows: through first year-5%, second year-4%, third year-3%, fourth year-3%, fifth year-2%, sixth year-1%, thereafter-0%, and the class D sales charge of 1% which also carries a CDSC of 1% that is applied to shares sold within the first year after they are purchased. Performance for different share classes will vary based on differences in sales charges and fees associated with each class. Performance results reflect any voluntary waivers or reimbursement of fund expenses by the advisor or its affiliates. Absent these waivers or reimbursement arrangements, performance results would have been lower. Classes A, B and D (newer class shares) share performance information includes returns of the fund's class Z shares (the oldest existing fund class) for periods prior to the inception of the newer class shares. These class Z share returns are not restated to reflect any differences in expenses (e.g., Rule 12b-1 fees) between class Z shares and the newer class shares. If difference in expenses had been reflected, the returns shown for periods prior to the inception of classes A, B and D would have been lower. 8 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- The fund was aided by its investments in South Korea and Thailand. We have been attracted to these markets because of their low valuations. After suffering through the severe Asian crisis of 1998, economic reforms have laid the groundwork for a more positive business environment. Superior economic growth, especially in consumer areas, has distinguished both countries. We maintain this portfolio emphasis as we move into 2003, even though South Korean equities may be vulnerable to heightened military tension with North Korea. The portfolio remained underweighted in Europe throughout the year. Our investments in this region were defensive in nature, favoring food retailing, pharmaceuticals and utilities sectors, while de-emphasizing cyclical or economically-sensitive areas. Individual European markets were extremely weak. Despite lackluster economic growth, the European Central Bank chose not to lower interest rates to help stimulate the economy as European interest rates remained among the highest in the world. One bright spot was the United Kingdom, where consumer spending maintained a strong pace. Outlook for slow growth Looking ahead, we anticipate an environment of tepid global economic growth. But with valuations at more attractive levels than a year ago and further support from stronger currencies, we expect modestly positive returns from international stock markets. Asian markets look attractive due to China's substantial position in the region and the increased importance of intra-Asian trade, which makes the region less dependent on global growth. Among European economies, the UK appears to offer the best growth prospects, so we plan to concentrate investments in the UK rather than continental Europe. As the year progresses, we shall watch for signs of renewed growth in Central Europe, which were lacking as the year commenced. James M. McAlear Portfolio Manager An investment in the fund may present certain risks, including stock market fluctuations that occur in response to economic and business developments. The fund invests in foreign securities, which have special risks, including political or economic instability and higher transaction costs; different regulations, accounting standards, trading practices and levels of information; and currency exchange rate fluctuations. - -------------------------------------------------------------------------------- TOP TEN HOLDINGS % of net assets December 31, 2002 Royal Bank of Scotland 2.0 GlaxoSmithKline 1.9 Canon 1.9 Smith & Nephew 1.9 Rohm 1.9 Nestle 1.8 Wal-Mart de Mexico 1.6 Sanofi-Synthelabo 1.6 UniCredito Italiano 1.6 Vodafone Group 1.4 Because the fund is actively managed, there can be no guarantee the fund will continue to maintain these holdings in the future. ----------------------------- TOP FIVE COUNTRIES % of net assets December 31, 2002 United Kingdom 23.6 Japan 17.8 France 7.0 USA 6.5 Switzerland 5.5 Because the fund is actively managed, there can be no guarantee the fund will continue to maintain these country weightings in the future. 9 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- COLUMBIA SPECIAL FUND - -------------------------------------------------------------------------------- PERFORMANCE OF A $10,000 INVESTMENT 12/31/92 - 12/31/02 without sales charge with sales charge -------------------- ----------------- Class A $ 22,135 $ 20,858 Class B 22,120 22,120 Class D 22,120 21,898 Class G 22,135 22,135 Class T 22,165 21,109 Class Z 22,165 n/a Line Chart: ----------------------------- GROWTH OF $10,000 OVER 10 YEARS
Class A shares Class A shares Russell MidCap Russell Midcap with sales charge without sales charge Index Growth Index 12/31/92 9425 10000 10000 10000 9670.99 10261 10200 10118 9530.76 10112.2 10211.2 9806.37 9676.58 10266.9 10543.1 10090.8 9536.27 10118.1 10263.7 9676.02 10088.4 10703.9 10589 10132.7 10223.6 10847.3 10708.7 10091.2 10379 11012.2 10760.1 10058.9 10940.5 11608 11238.9 10643.3 11076.2 11751.9 11281.6 10771 11081.7 11757.8 11290.7 10944.5 10790.3 11448.5 11028.7 10689.4 11470 12169.8 11428 11118.1 11934.6 12662.7 11743.4 11403.8 11975.2 12705.7 11583.7 11305.8 11516.5 12219.1 11090.2 10773.2 11586.8 12293.6 11166.7 10747.4 11469.7 12169.5 11182.4 10763.5 11063.7 11738.7 10851.4 10300.7 11269.5 11957 11223.6 10586 11763.1 12480.7 11755.6 11216.9 11733.7 12449.5 11468.7 11031.9 12034.1 12768.2 11555.9 11222.7 11510.6 12212.8 11046.3 10727.8 11731.6 12447.3 11189.9 10878 11611.9 12320.4 11419.3 11008.5 12013.7 12746.6 12010.8 11594.2 12333.3 13085.7 12354.3 12054.5 12371.5 13126.3 12540.8 12155.7 12516.2 13279.8 12953.4 12454.7 13313.5 14125.8 13388.7 13021.4 14324 15197.9 14039.4 13840.5 14563.2 15451.7 14254.2 13992.7 14794.8 15697.4 14576.3 14304.8 14179.3 15044.4 14249.8 13942.9 14945 15856.8 14958 14566.1 15194.6 16121.6 15044.8 14573.4 15080.6 16000.7 15362.2 14831.3 15753.2 16714.3 15723.2 15392 16136 17120.5 15951.2 15513.5 17546.3 18616.8 16402.6 16262.9 18042.9 19143.7 16650.3 16594.6 17009 18046.7 16400.6 16093.5 15343.9 16280 15385.4 14844.6 16279.8 17273 16117.7 15647.7 16909.9 17941.5 16913.9 16641.3 16434.7 17437.3 17049.2 16446.6 17348.5 18406.8 18087.5 17415.3 17180.2 18228.3 17903 17122.8 17587.3 18660.3 18572.6 17879.6 17311.2 18367.3 18544.8 17486.2 16471.6 17476.5 17756.6 16498.3 16349.7 17347.2 18198.7 16902.5 17881.7 18972.6 19527.2 18416.9 18461.1 19587.3 20165.8 18927.1 19500.4 20690.1 21847.6 20738.4 19440 20626 21609.5 20535.2 20382.8 21626.3 22843.4 21574.2 19196.5 20367.7 21954.8 20493.4 19396.2 20579.5 22477.3 20708.5 19353.5 20534.2 23097.7 20979.8 18836.8 19986 22663.4 20602.2 20040.5 21263.1 24435.7 22538.8 21311 22611.2 25594 23483.2 21245 22541.1 25658 23802.5 20690.5 21952.7 24865.1 22824.3 21025.6 22308.4 25210.7 23470.2 19591.7 20786.9 24008.2 22465.7 17136.9 18182.3 20166.9 18177 18331.3 19449.7 21471.7 19551.2 19095.7 20260.7 22936 20990.1 19974.1 21192.7 24020.9 22407 22574.7 23952 25428.5 24728.3 22116.5 23465.8 25385.3 25470.2 20291.9 21529.8 24540 24224.7 20866.1 22139.1 25308.1 25574 21544.3 22858.7 27178.3 26740.2 21602.4 22920.4 27099.5 26395.2 23112.5 24522.5 28056.2 28237.6 22509.2 23882.5 27284.6 27339.6 22088.3 23435.9 26577.9 27055.3 22393.1 23759.3 25642.4 26825.3 23741.2 25189.6 26857.8 28898.9 26675.6 28303 27631.3 31892.9 30775.6 32653.2 30062.9 37416.7 31298.8 33208.3 29067.8 37409.2 40225.2 42679.3 31303.1 45272.6 39577.6 41992.2 33096.8 45317.9 35710.9 37889.5 31531.3 40917.6 33757.5 35817 30695.8 37934.7 37501.2 39789.1 31604.3 41959.5 36019.9 38217.4 31250.4 39303.5 41059.1 43564 34244.2 45230.4 40196.8 42649.2 33754.5 43018.7 37391.1 39672.3 33234.7 40076.2 31973.1 33923.8 30243.5 31367.7 35039.4 37177 32545.1 33020.7 34433.2 36533.9 33069 34906.2 30562.9 32427.5 31055.1 28867.4 27934.5 29638.7 29129.7 24736.5 30605 32472.2 31620.3 28860.1 30106.2 31942.9 32208.4 28724.4 29552.2 31355.1 31905.7 28738.8 28473.5 30210.7 30993.2 26801.8 26856.2 28494.7 29800 24858.7 23821.5 25274.8 26206.1 20749.5 24683.8 26189.7 27243.8 22930.3 26705.4 28334.7 29526.9 25399.9 27685.5 29374.6 30713.8 26365.1 26752.5 28384.6 30529.6 25508.2 25551.3 27110.2 30206 24061.9 27061.4 28712.4 32018.3 25897.8 26368.7 27977.3 31397.2 24527.8 25944.1 27526.9 31042.4 23796.9 24151.4 25624.8 28962.5 21169.7 22301.4 23661.9 26135.8 19112 21779.5 23108.2 26279.5 19045.2 20819 22089.2 23853.9 17533 21397.8 22703.2 25058.5 18891.8 22005.5 23348 26797.6 20371 12/31/02 20858 22135 25741.8 19140.6
Mutual fund performance changes over time. Please visit libertyfunds.com for daily performance updates. Past performance is no guarantee of future investment results. The principal value and investment returns will fluctuate, resulting in a gain or loss on sale. The above illustration assumes a$10,000 investment made on December 31, 1992, and reinvestment of income and capital gains distributions. The Russell Midcap Index is an unmanaged index that measures the performance of the 800 smallest companies in the Russell 1000 Index, which represent approximately 24% of the total market capitalization of the Russell 1000 Index. The Russell Midcap Growth Index is an unmanaged index that measures the performance of those Russell Midcap companies with higher price-to-book ratios and higher forecasted growth values. Unlike the fund, indexes are not investments, do not incur fees and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index. - -------------------------------------------------------------------------------- For the 12 months ended December 31, 2002, the class A shares of Columbia Special Fund returned negative 24.64%, without sales charge. Although we are always disappointed to report negative returns, the fund's performance was in line with a declining stock market. It held up somewhat better than the Russell MidCap Growth Index, which had a total return of negative 27.41% during the same period. The fund also outperformed its peer group, the Lipper MidCap Growth Funds Category, which returned an average of negative 28.33%.(1) The fund trailed the Russell MidCap Index, which had a total return of negative 16.18% during the period. Although we compare fund performance against this index, it is important to remember that the Russell MidCap Index does not have the same emphasis on growth stocks as the fund. The fund's emphasis on sectors that performed better than the overall market, as well as a relatively high cash position, helped its performance against its more relevant index, the Russell MidCap Growth Index. Waiting on recovery A full economic recovery has yet to materialize, despite 12 short-term interest rate cuts by the Federal Reserve Board over the past two years. The Fed typically uses its power over short-term interest rates to help manage economic growth. American consumers have been the one bright spot in the past year. Supported by low interest rates, rising personal income and a strong housing market, they have kept the economy afloat. Strong consumer spending on automobiles and also on smaller, retail items have helped offset a slowdown in business spending. Consumer spending accounts for two-thirds of the US economy. AVERAGE ANNUAL TOTAL RETURN (%) As of December 31, 2002
Class A Class B Class D - ------------------------------------------------------------------------------------------------------- Public offering date 11/1/02 11/1/02 11/1/02 - ------------------------------------------------------------------------------------------------------- without with without with without with sales charge sales charge sales charge sales charge sales charge sales charge - ------------------------------------------------------------------------------------------------------- 1-year -24.64 -28.99 -24.69 -28.46 -24.69 -26.20 - ------------------------------------------------------------------------------------------------------- 5-year 1.51 0.31 1.50 1.22 1.50 1.30 - ------------------------------------------------------------------------------------------------------- 10-year 8.27 7.63 8.26 8.26 8.26 8.15 - ------------------------------------------------------------------------------------------------------- Class G Class T Class Z - -------------------------------------------------------------------------------------------- Public offering date 11/1/02 11/1/02 11/20/85 - -------------------------------------------------------------------------------------------- without with without with without sales charge sales charge sales charge sales charge sales charge - -------------------------------------------------------------------------------------------- 1-year -24.64 -28.41 -24.54 -28.89 -24.54 - -------------------------------------------------------------------------------------------- 5-year 1.51 1.10 1.54 0.34 1.54 - -------------------------------------------------------------------------------------------- 10-year 8.27 8.27 8.28 7.64 8.28 - --------------------------------------------------------------------------------------------
Past performance is no guarantee of future investment results. The principal value and investment returns will fluctuate, resulting in a gain or loss on sale. All results shown assume reinvestment of distributions, if any. The "with sales charge" returns include the maximum 5.75% charge for class A shares, the appropriate class B contingent deferred sales charge (CDSC) for the holding period after purchase as follows: through first year-5%, second year-4%, third year-3%, fourth year-3%, fifth year-2%, sixth year-1%, thereafter-0%, and the class D sales charge of 1% which also carries a CDSC of 1% that is applied to shares sold within the first year after they are purchased. For class G shares, the CDSC for the holding period after purchase is as follows: through first year-5%, second year-4%, third year-4%, fourth year-4%, fifth year-3%, sixth year-2%, seventh year-1%, thereafter-0%. For class T shares, the "with sales charge" returns include the maximum 5.75% charge. Performance for different share classes will vary based on differences in sales charges and fees associated with each class. Performance results reflect any voluntary waivers or reimbursement of fund expenses by the advisor or its affiliates. Absent these waivers or reimbursement arrangements, performance results would have been lower. Classes A, B, D, G and T (newer class shares) share performance information includes returns of the fund's class Z shares (the oldest existing fund class) for periods prior to the inception of the newer class shares. These class Z share returns are not restated to reflect any expense differential (e.g., Rule 12b-1 fees) between class Z shares and the newer class shares. Had the expense differential been reflected, the returns for the periods prior to the inception of classes A, B, D, G and T would have been lower. 10 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- Cash, health care and retail stocks helped performance The main catalysts for the fund's relative outperformance were its double-digit cash position, overweight positions in health care and consumer discretionary stocks, and underweight position in technology. In the health care sector, our investments in Boston Scientific and Wellpoint Health Networks (0.7% and 2.9% of net assets, respectively) made positive contributions to the fund's performance.(2) Limited Brands, Weight Watchers International and Williams Sonoma (0.4%, 1.5% and 1.1% of net assets, respectively) were three retail stocks that also performed well. Basic materials and energy cause drag Performance was held back by poor stock selection in the basic materials sector, particularly with OM Group, a producer of metal-based specialty chemicals that performed much worse than expected. We sold our position early enough to miss much of the loss but too late to avoid it entirely. We also sold our position in Sepracor, a biotech company, which also hurt performance. Our stake in energy stocks was higher than the Russell MidCap Growth Index, which detracted from performance given the sector's recent tepid results. In addition, we were underweight in consumer staples, which showed enviable relative strength. Strategy going forward We have lowered the fund's cash position and trimmed its health care position in order to put more money into stocks and sectors of the market that we believe could benefit from a recovering economy. If businesses increase their spending, the federal government approves measures to stimulate the economy, and geopolitical concerns about Iraq, North Korea and Venezuela are resolved, stocks have the potential to move higher. But disappointment in any of these areas would be risky for stocks. We will continue our strategy of emphasizing growth companies with clear visible signs of earnings, in order to help manage downside risk. Richard J. Johnson Portfolio Manager An investment in the fund may present certain risks, including stock market fluctuations that occur in response to economic and business developments. Stocks of small- and mid-cap companies may trade less frequently, may trade in smaller volumes and may fluctuate more sharply in price than stocks of larger companies. The fund invests in foreign securities, which have special risks, including political or economic instability and higher transaction costs; different regulations, accounting standards, trading practices and levels of information; and currency exchange rate fluctuations. - -------------------------------------------------------------------------------- TOP TEN HOLDINGS % of net assets December 31, 2002 HCA 3.6 Caremark Rx 3.0 Intuit 2.9 Wellpoint Health Networks 2.9 Brinker International 2.2 Cox Radio, Class A 2.0 Biomet 1.9 Moody's 1.8 Electronic Arts 1.8 AmerisourceBergen 1.7 Because the fund is actively managed, there can be no guarantee the fund will continue to maintain these holdings in the future. ----------------------------- TOP FIVE SECTORS % of net assets December 31, 2002 Health care 27.0 Consumer discretionary 20.3 Information technology 14.6 Industrials 14.0 Energy 9.0 Because the fund is actively managed, there can be no guarantee the fund will continue to maintain these sectors in the future. - ---------- (1) Lipper Inc., a widely respected data provider in the industry, calculates an average total return for mutual funds with similar investment objectives as those of the fund. (2) Holdings are disclosed as of December 31, 2002 and are subject to change. 11 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- COLUMBIA SMALL CAP FUND - -------------------------------------------------------------------------------- PERFORMANCE OF A $10,000 INVESTMENT 10/1/96 - 12/31/02 without sales charge ------------ Class Z $ 16,039 Line Chart: ----------------------------- GROWTH OF $10,000 SINCE INCEPTION Russell 2000 Class Z shares Russell 2000 Index Growth Index 9/30/96 10000 10000 10000 10174 9846 9569 10488.4 10251.7 9835.02 10762.1 10520.2 10026.8 11507.9 10730.7 10277.5 10819.8 10471 9656.71 10223.6 9976.74 8974.95 10190.9 10004.7 8870.84 11474.9 11117.2 10204.1 12244.9 11594.1 10550 13098.4 12133.3 11090.2 13753.3 12411.1 11422.9 15021.3 13319.6 12334.5 14449 12734.9 11593.2 14200.5 12652.1 11317.2 14432 12873.5 11324 13817.2 12670.1 11173.4 14952.9 13606.4 12160 16261.3 14167 12669.5 16435.3 14244.9 12746.8 15247 13477.1 11820.1 15715.1 13505.4 11940.7 14978.1 12411.5 10943.7 11771.3 10001.2 8417.86 12854.2 10784.3 9271.43 12984.1 11224.3 9755.4 13720.3 11812.4 10512.4 15108.8 12543.6 11463.8 15030.2 12710.4 11979.7 13452 11680.9 10883.5 13678 11863.1 11271 14077.4 12926 12266.2 14381.5 13114.8 12285.8 15681.6 13707.6 12933.3 16089.3 13332 12533.6 15725.7 12838.7 12064.9 16002.4 12841.3 12297.7 17554.7 12893.9 12612.6 19964.9 13663.7 13945.7 24047.8 15210.4 16404.3 24249.8 14965.5 16251.8 30794.8 17436.3 20033.6 29559.9 16287.3 17928 26349.7 15306.8 16117.3 24884.7 14414.4 14705.4 28385.9 15671.3 16605.4 26205.9 15166.7 15182.3 29285.1 16323.9 16779.5 28066.8 15844 15945.5 26663.5 15137.4 14650.8 23453.2 13582.7 11990.2 25451.4 14749.5 12724 25767 15518 13753.3 22981.6 14500 11867.8 20993.7 13790.9 10789 23433.2 14869.4 12109.6 23599.5 15235.2 12390.5 23984.2 15760.8 12728.8 22785 14908.1 11643 21092.1 14426.6 10915.3 17835.5 12484.8 9153.58 19105.3 13215.1 10034.2 20452.3 14238 10872 21838.9 15116.5 11549.3 21249.3 14959.2 11138.2 20197.4 14549.4 10417.5 21534.5 15719.1 11322.8 20856.2 15862.2 11078.2 20088.7 15157.9 10430.2 18740.7 14406.1 9545.69 16203.2 12230.8 8078.52 16459.2 12200.2 8074.48 15751.5 11324.2 7491.5 16027.1 11687.7 7870.57 16942.3 12730.3 8650.54 12/31/02 16038.6 12022.1 8054.84 Mutual fund performance changes over time. Please visit libertyfunds.com for daily performance updates. Past performance is no guarantee of future investment results. The principal value and investment returns will fluctuate, resulting in a gain or loss on sale. The above illustration assumes a $10,000 investment made on October 1, 1996, and reinvestment of income and capital gains distributions. The Russell 2000 Index is an unmanaged market capitalization weighted index that tracks the performance of 2000 small companies. The Russell 2000 Growth Index, also an unmanaged index, measures the performance of those Russell 2000 companies with higher price-to-book ratios and higher forecasted growth values. Unlike the fund, indexes are not investments, do not incur fees and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those of the index. Index performance is from September 30, 1996. - -------------------------------------------------------------------------------- For the 12 months ended December 31, 2002, the fund's class Z shares returned negative 26.58%. This return was somewhat better than the returns for the Russell 2000 Growth Index, which declined 30.26% during the same period. Fund performance was also better than the negative 27.93% average return of the Lipper Small-Cap Growth the Funds Category.(1) The fund trailed the Russell 2000 Index, an index less closely aligned with the fund's emphasis on growth stocks than the Russell 2000 Growth Index or its peer group. The Russell 2000 Index had a total return of negative 20.48%. During the period, value stocks outperformed growth stocks, which accounts for the fund's underperformance relative to the broader index. But strong stock and sector selection, as well as a relatively high cash position, accounted for the outperformance against the Russell 2000 Growth Index. Waiting on recovery A full economic recovery has not yet materialized, despite 12 short-term interest rate cuts by the Federal Reserve Board over the past two years. The Fed typically uses its power over short-term interest rates to help manage economic growth. And investors are still paying for the market's giant party of the late 1990s, during which companies spent too much cash and took on too much debt, leaving a financial hangover of historical proportions. Geopolitical uncertainties, corporate mismanagement and poor company operating results have also hurt. American consumers have been the one bright spot in the past year. Supported by low interest rates and a strong housing market, they have kept the economy afloat. Health care, cash and retail stocks help Stock selection in the health care and retail sectors, a higher-than-normal cash position and our underweight position in technology all helped stem the fund's losses during the year. Trigon Healthcare, an HMO, performed well and got a boost when it was acquired by Anthem at a premium. MidAtlantic Medical Services (0.9% of net assets) was also solid, as were retailers Michaels Stores (0.9% of net assets), Intimate Brands and Pacific Sunwear.(2) Prior to the end of the period, we eliminated our positions in Trigon Healthcare, Intimate Brands and Pacific Sunwear. AVERAGE ANNUAL TOTAL RETURN (%) As of December 31, 2002 Class Z - -------------------------------------------------------------------------------- Public offering date 10/1/96 - -------------------------------------------------------------------------------- without sales charge - -------------------------------------------------------------------------------- 1-year -26.58 - -------------------------------------------------------------------------------- 5-year 2.13 - -------------------------------------------------------------------------------- Life 7.85 - -------------------------------------------------------------------------------- Past performance is no guarantee of future investment results. The principal value and investment returns will fluctuate, resulting in a gain or loss on sale. All results shown assume reinvestment of distributions, if any. Performance results reflect any voluntary waivers or reimbursements of fund expenses by the advisor or its affiliates. Absent these waivers or reimbursement arrangements, performance results would have been lower. 12 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- Low exposure to financials, consumer staples were impaired performance Being underweight in financial and consumer staples stocks, two groups that did better than the overall market, hurt performance. However, this underweighting could turn into a positive if the economy strengthens, since financials and consumer staples tend to lag more growth-oriented sectors during times of economic improvement. Our investments in the basic materials sector also detracted from performance. In particular, OM Group, a producer of metal-based specialty chemicals, performed worse than expected. In addition, biotech companies Sepracor and First Horizon Pharmaceuticals were punished for missing earnings projections. We eliminated our positions in OM Group, Sepracor and First Horizon prior to the end of the period. Strategy going forward Toward year end, we lowered our cash position and trimmed our health care weighting in order to put more money into stocks and sectors of the market that we believe could benefit from a recovering economy. Increased corporate spending, fiscal stimulus from the federal government and positive resolutions to geopolitical concerns regarding Iraq, North Korea and Venezuela could also help move stocks higher. But disappointment in any of these areas would be risky for stocks. We will continue our strategy of emphasizing growth companies with clear, visible signs of earnings, in order to help manage downside risk. Richard J. Johnson Portfolio Manager An investment in the fund may present certain risks, including stock market fluctuations that occur in response to economic and business developments. Stocks of small- and mid-cap companies may trade less frequently, may trade in smaller volumes and may fluctuate more sharply in price than stocks of larger companies. The fund invests in foreign securities, which have special risks, including political or economic instability and higher transaction costs; different regulations, accounting standards, trading practices and levels of information; and currency exchange rate fluctuations. - -------------------------------------------------------------------------------- TOP TEN HOLDINGS % of net assets December 31, 2002 Caremark Rx 2.9 First Health Group 2.7 Amphenol 2.6 DaVita 2.1 Lamar Advertising 2.0 Fair, Issac and Co. 1.9 Education Management 1.9 Neurocrine Biosciences 1.9 Jacobs Engineering Group 1.8 Harman International Industries 1.8 Because the fund is actively managed, there can be no guarantee the fund will continue to maintain these holdings in the future. ----------------------------- TOP FIVE SECTORS % of net assets December 31, 2002 Health care 23.5 Consumer discretionary 21.3 Information technology 19.1 Industrials 16.0 Energy 6.9 Because the fund is actively managed, there can be no guarantee the fund will continue to maintain these sectors in the future. - ---------- (1) Lipper Inc., a widely respected data provider in the industry, calculates an average total return for mutual funds with similar investment objectives as those of the fund. (2) Holdings are disclosed as of December 31, 2002 and are subject to change. 13 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- COLUMBIA REAL ESTATE EQUITY FUND - -------------------------------------------------------------------------------- PERFORMANCE OF A $10,000 INVESTMENT 4/1/94 - 12/31/02 without sales charge with sales charge -------------------- ----------------- Class A $ 24,532 23,126 Class B 24,528 24,528 Class D 24,528 24,286 Class Z 24,567 n/a Line Chart: ----------------------------- GROWTH OF $10,000 SINCE INCEPTION Class A shares Classs A shares With sales charge without sales charge NAREIT Index 4/01/94 9425 10000 10000 9441.02 10017 10169.8 9731.81 10325.5 10396.2 9551.77 10134.5 10184.1 9393.21 9966.27 10134.3 9535.99 10117.8 10164.6 9338.59 9908.32 9975.83 9057.5 9610.08 9629.79 8720.56 9252.58 9298.66 9591.74 10176.9 9977.44 9239.73 9803.42 9759.58 9329.35 9898.52 10000.6 9394.66 9967.81 9960.55 9253.74 9818.29 9957.99 9710.87 10303.3 10381.2 9954.61 10561.9 10546.3 10106.9 10723.5 10728.1 10174.6 10795.4 10856.9 10429 11065.3 11043.1 10197.5 10819.6 10806.5 10283.1 10910.5 10905.2 11209.6 11893.5 11500.7 11421.5 12118.3 11689.9 11518.6 12221.3 11826.8 11448.3 12146.8 11762.3 11439.2 12137.1 11821.9 11698.8 12412.6 12127.4 11976.1 12706.7 12285.4 11994.1 12725.8 12378.2 12574.6 13341.7 12865.4 13101.5 13900.7 13089.4 13358.2 14173.2 13477.9 14046.2 14903.1 14092 15502.8 16448.6 15556.6 15809.7 16774.3 15730.4 15906.2 16876.6 15698.3 16124.1 17107.8 15664.9 15572.6 16522.7 15233.8 16066.3 17046.5 15681.7 16794.1 17818.7 16443.8 17674.1 18752.4 16951.8 17497.4 18564.9 16911.3 19061.6 20224.6 18387.2 18409.7 19532.9 17890.2 18873.7 20025.1 18276.9 19337.9 20517.7 18708.4 19266.4 20441.8 18609.5 18906.1 20059.5 18292.9 19543.3 20735.5 18621.1 18695.1 19835.6 18014.5 18549.3 19680.9 17888.3 18497.3 19625.8 17767.2 17407.8 18469.8 16613.8 16130.1 17114.2 15045.9 16967.2 18002.4 15897.7 16680.5 17698.1 15603.4 17019.1 18057.4 15833.1 16949.3 17983.4 15434 16647.6 17663.3 15111.6 16529.4 17537.9 14756.6 16431.9 17434.4 14690 17790.8 18876.2 16084 18324.6 19442.5 16437.4 17910.4 19003.1 16171.2 17249.5 18301.9 15656.6 17239.2 18290.9 15457.6 16468.6 17473.3 14870.8 16134.3 17118.6 14505 16000.4 16976.5 14269.1 16531.6 17540.1 14721 16599.4 17612 14769.4 16191 17178.8 14593.5 17031.3 18070.4 15073.3 18053.2 19154.6 16086.1 18203 19313.6 16244.4 18880.2 20032 16661.1 20505.8 21756.8 18117.3 19693.7 20895.2 17382 20507.1 21758.2 17935 19531 20722.5 17158.6 20107.1 21333.8 17378.9 21301.5 22601 18602.2 21099.1 22386.3 18796.4 20801.6 22070.7 18496.1 20443.8 21691.1 18675.7 21165.5 22456.8 19121.2 21622.7 22941.8 19584.1 22561.1 23937.5 20732 22161.8 23513.8 20320.2 22864.3 24259.2 21063.2 21421.6 22728.5 20188.5 20695.4 21958 19610.9 21887.4 23222.7 20690.1 22452.1 23821.9 21194 22589.1 23967.2 21235.6 23036.3 24441.7 21645 23907.1 25365.6 22943.5 24081.6 25550.8 23139.1 24558.5 26056.7 23452.4 24909.6 26429.3 24093.4 23619.3 25060.3 22833.1 23378.4 24804.7 22788.5 22455 23824.9 21913.9 21788 23117.3 20859.4 22901.4 24298.6 21841.6 12/31/02 23126 24532 22003.8 Mutual fund performance changes over time. Please visit libertyfunds.com for daily performance updates. Past performance is no guarantee of future investment results. The principal value and investment returns will fluctuate, resulting in a gain or loss on sale. The above illustration assumes a$ 10,000 investment made on April 1, 1994, and reinvestment of income and capital gains distributions. The National Association of Real Estate Investment Trusts (NAREIT) Index is an unmanaged index that tracks performance of all publicly traded equity REITs. Unlike the fund, indexes are not investments, do not incur fees, and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index. Index performance is from March 31, 1994. - -------------------------------------------------------------------------------- Real estate outperformed stocks in 2002 -- again Following two consecutive years of strong returns relative to the broader equity markets, real estate securities outperformed the stock market again in 2002, although performance slowed. For the 12 months ended December 31, 2002, the fund's class A shares returned 2.97% without a sales charge. The NAREIT Index, a common measure of real estate securities performance, returned 3.81%. The fund's underperformance relative to this index was largely the result of the portfolio's overweight in office-sector holdings and its underweight in lodging stocks during the first quarter. In addition, the fund was positioned defensively when real estate investment trusts (REITs) unexpectedly rallied during the first quarter. Timing of sector allocations influenced performance The fund has not been immune to the effects of the slowdown in the national economy. A weaker economy affects different real estate sectors at different times and to different degrees. In the first quarter, for example, the fund achieved good results from its emphasis on regional shopping centers and industrial REITs. During the same period, the fund's overweight exposure to office REITs hurt performance as news of rising corporate layoffs and office vacancies rattled REIT investors. We reduced our exposure to the office sector in the second quarter. In addition, lodging stocks bucked the tide of weaker economic data. These stocks rebounded early in 2002, following the steep declines suffered after the events of September 11, 2001. We were conservative in maintaining an underweighting and therefore missed the first-quarter rally. When their stock prices later corrected on a reduced earnings outlook, we added to the fund's holdings in lodging stocks. When the economy appeared to have turned the corner at mid-year, we shifted a modest portion of the fund's assets into paper and forest products companies, whose business prospects and stock prices AVERAGE ANNUAL TOTAL RETURN (%) As of December 31, 2002
Class A Class B Class D Class Z - ------------------------------------------------------------------------------------------------------------------------------------ Public offering date 11/1/02 11/1/02 11/1/02 4/1/94 - ------------------------------------------------------------------------------------------------------------------------------------ without with without with without with without sales charge sales charge sales charge sales charge sales charge sales charge sales charge - ------------------------------------------------------------------------------------------------------------------------------------ 1-year 2.97 -2.95 2.95 -1.98 2.95 0.96 3.12 - ------------------------------------------------------------------------------------------------------------------------------------ 5-year 3.64 2.42 3.64 3.31 3.64 3.43 3.67 - ------------------------------------------------------------------------------------------------------------------------------------ Life 10.80 10.05 10.80 10.80 10.80 10.67 10.82 - ------------------------------------------------------------------------------------------------------------------------------------
Past performance is no guarantee of future investment results. The principal value and investment returns will fluctuate, resulting in a gain or loss on sale. All results shown assume reinvestment of distributions, if any. The "with sales charge" returns include the maximum 5.75% charge for class A shares, the appropriate class B contingent deferred sales charge (CDSC) for the holding period after purchase as follows: through the first year-5%, second year-4%, third year-3%, fourth year-3%, fifth year-2%, sixth year-1%, thereafter-0%, and the class D sales charge of 1% which also carries a CDSC of 1% that is applied to shares sold within the first year after they are purchased. Performance for different share classes will vary based on differences in sales charges and fees associated with each class. Performance results reflect any voluntary waivers or reimbursement of fund expenses by the advisor or its affiliates. Absent these waivers or reimbursement arrangements, performance results would have been lower. Classes A, B, and D (newer class shares) share performance information includes returns of the fund's class Z shares (the oldest existing fund class) for periods prior to the inception of the newer class shares. These class Z share returns are not restated to reflect any expense differential (e.g., Rule 12b-1 fees) between class Z shares and the newer class shares. Had the expense differential been reflected, the returns for the periods prior to the inception of classes A, B and D would have been lower. 14 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- typically improve as the economy strengthens. Although the timing of this move proved to be somewhat premature, paper and forest stocks rallied in the fourth quarter on positive reports of more robust manufacturing activity. The fund ultimately benefited from these moves in the final months of the year. Our performance also improved in the second half of the year because we reduced our positions in office and residential securities, which continued to underperform as a result of weakness in national employment statistics. REIT outlook: a modest year ahead Because we expect a modest economic recovery in 2003, we have favored cyclical sectors of the real estate markets, such as industrial, retail and lodging shares. As we have noted in previous reports, revised REIT earnings estimates tend to lag the broader market. While revised earnings for the S&P 500 have generally moved up, REITs continue to drift down. In this environment, we expect the broader stock market to outperform REITs. To the extent possible, we plan to position the fund to benefit from any recovery in the broader market by continuing to invest in more cyclical non-REIT real-estate-related businesses. David W. Jellison Portfolio Manager An investment in the fund may present certain risks, including stock market fluctuations that occur in response to economic and business developments. The fund may be subject to the same types of risks associated with direct ownership of real estate including the decline of property value due to general, local and regional economic conditions. In addition, the fund's share price will likely be subject to more volatility than the overall stock market because it concentrates in real estate stocks. - -------------------------------------------------------------------------------- TOP TEN HOLDINGS % of net assets December 31, 2002 General Growth Properties 6.3 iStar Financial 5.6 Cousins Properties 5.0 ProLogis Trust 4.4 Simon Property Group 3.6 Rouse 3.6 Hilton Hotels 3.5 Bowater 3.5 Starwood Hotels & Resorts Worldwide 3.4 International Paper 3.3 Because the fund is actively managed, there can be no guarantee the fund will continue to maintain these holdings in the future. ----------------------------- TOP FIVE SECTORS % of net assets December 31, 2002 Retail 25.5 Industrial 20.8 Office 15.8 Residential 11.6 Lodging 9.1 Because the fund is actively managed, there can be no guarantee the fund will continue to maintain these sectors in the future. 15 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- COLUMBIA TECHNOLOGY FUND - -------------------------------------------------------------------------------- PERFORMANCE OF A $10,000 INVESTMENT 11/9/00 - 12/31/02 without sales charge with sales charge -------------------- ----------------- Class A $ 3,786 $ 3,569 Class B 3,776 3,663 Class D 3,776 3,739 Class Z 3,786 n/a Line Chart: ----------------------------- GROWTH OF $10,000 SINCE INCEPTION Class A shares Class A shares Merrill Lynch 100 With sales charge without sales charge Technology Index 11/9/00 9425 10000 10000 8212 8713 7182 8126.6 8622.38 6786.27 8616.63 9142.31 7954.19 6422.84 6814.68 5653.84 5792.11 6145.48 4751.49 6941.27 7364.74 5804.89 6724.7 7134.96 5463.56 6865.92 7284.8 5483.23 6357.16 6744.99 4987 5744.96 6095.45 4376.09 4285.17 4546.6 3241.81 4869.24 5166.3 3855.81 5556.77 5895.78 4585.33 5773.49 6125.71 4577.07 5735.96 6085.9 4602.25 5057.97 5366.54 3977.72 5754.96 6106.05 4440.33 5067.24 5376.38 3899.05 4756.62 5046.81 3680.71 4342.32 4607.23 3080.02 3664.05 3887.58 2668.53 3635.83 3857.65 2574.86 3268.61 3468.03 2111.9 3598.42 3817.95 2572.29 4012.95 4257.78 3140 12/31/02 3569 3786 2843 Mutual fund performance changes over time. Please visit libertyfunds.com for daily performance updates. Past performance is no guarantee of future investment results. The principal value and investment returns will fluctuate, resulting in a gain or loss on sale. The above illustration assumes a $10,000 investment made on November 9, 2000, and reinvestment of income and capital gains distributions. The Merrill Lynch 100 Technology Index is an equally weighted, unmanaged index of 100 leading technology stocks. Unlike the fund, indexes are not investments, do not incur fees, and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index. Index performance is from October 31, 2000. - -------------------------------------------------------------------------------- Technology stocks continued to struggle For the 12 months ended December 31, 2002, the fund's class A shares returned negative 38.17% without sales charge. Unfortunately, this was yet another period of disappointing returns in a market that has continued to punish technology stocks. However, the fund did somewhat better than its benchmark, the Merrill Lynch 100 Technology Index, which posted a total return of negative 41.54% for the same period. Across the broader market, stocks of all sizes and investment styles declined as investors responded to a weak economic recovery, geopolitical tensions and growing revelations of management and accounting scandals in several high-profile Fortune 500 companies. While the fund did not have investments in any of these troubled names, performance was hurt by the ongoing uncertainty generated by this environment. In the technology sector, overcapacity combined with a continued lack of demand triggered a cycle of declining earnings revisions that depressed stock prices. Unfortunately, the stimulus from government policy initiatives early in 2002 wasn't enough to jump-start demand for technology products. Telecom and computer hardware hurt fund in first half Telecommunications and computer hardware holdings hurt the fund's performance during the first half of the year. At mid-year we changed to a more defensive strategy, raising cash levels and moving to a "barbell" approach in managing the fund. We took large positions in names in which we had the most confidence, such as the convertible securities issued by telecommunications equipment companies Juniper Networks and Ciena. They were yielding 14% when we bought them. We later sold them at a profit. At the other end of the barbell, we spread our smaller investments broadly over many smaller companies. AVERAGE ANNUAL TOTAL RETURN (%) As of December 31, 2002
Class A Class B Class D Class Z - ------------------------------------------------------------------------------------------------------------------------------------ Public offering date 11/1/02 11/1/02 11/1/02 11/9/00 - ------------------------------------------------------------------------------------------------------------------------------------ without with without with without with without sales charge sales charge sales charge sales charge sales charge sales charge sales charge - ------------------------------------------------------------------------------------------------------------------------------------ 1-year -38.17 -41.69 -38.34 -41.42 -38.34 -39.54 -38.17 - ------------------------------------------------------------------------------------------------------------------------------------ Life -36.45 -38.18 -36.53 -37.42 -36.53 -36.82 -36.45 - ------------------------------------------------------------------------------------------------------------------------------------
Past performance is no guarantee of future investment results. The principal value and investment returns will fluctuate, resulting in a gain or loss on sale. All results shown assume reinvestment of distributions, if any. The "with sales charge" returns include the maximum 5.75% charge for class A shares, the appropriate class B contingent deferred sales charge (CDSC) for the holding period after purchase as follows: through the first year-5%, second year-4%, third year-3%, fourth year-3%, fifth year-2%, sixth year-1%, thereafter-0%, and the class D sales charge of 1% which also carries a CDSC of 1% that is applied to shares sold within the first year after they are purchased. Performance for different share classes will vary based on differences in sales charges and fees associated with each class. Performance results reflect any voluntary waivers or reimbursement of fund expenses by the advisor or its affiliates. Absent these waivers or reimbursement arrangements, performance results would have been lower. Classes A, B, and D (newer class shares) share performance information includes returns of the fund's class Z shares (the oldest existing fund class) for periods prior to the inception of the newer class shares. These class Z share returns are not restated to reflect any expense differential (e.g., Rule 12b-1 fees) between class Z shares and the newer class shares. Had the expense differential been reflected, the returns for the periods prior to the inception of classes A, B and D would have been lower. 16 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- Opportunities in defense and international markets targeted in second half During the second half of the year, we added Lockheed Martin (3.6% of net assets) to the portfolio in order to take advantage of increases in defense spending.(1) We also found many opportunities overseas where the market for technology was not as saturated as it was in the United States. We established a large position in the South Korean company Samsung Electronics (3.3% of net assets), which has done well. Samsung has a growing share worldwide in the end markets for memory and cell phones, and the highest profit margins in the industry. We also established a small position in SINA.com (0.7% of net assets), a Chinese Internet web portal that trades on the New York Stock Exchange. SINA.com is benefiting from the explosion of internet growth in China. The company has clean accounting, positive cash flow and a solid balance sheet. Repositioning for growth While fund performance held up during the difficult third quarter, our defensive strategy held us back in the fourth quarter. We failed to get a boost from the brief recovery that took place in October and November. Toward the end of the year, we positioned the fund more aggressively in anticipation of a possible rally in January. We added to our investments in software and telecommunications equipment makers--areas that we think could benefit from an increase in business spending after a long period of decline. Outlook for 2003 In the coming year, the tax cuts and spending increases proposed by President Bush may help the technology sector, but we expect recovery to be slow. Meanwhile, we have concentrated our efforts on stock selection. We intend to maintain a research-intensive, bottom-up approach to the portfolio. Our approach will be to emphasize companies with growing or accelerating profits or those that we believe have been overlooked or underappreciated by the market. The Technology Fund is team managed, operated by Wayne Collette and Ted Wendell An investment in the fund may present certain risks, including stock market fluctuations that occur in response to economic and business developments. In addition, the fund's share price will likely be subject to more volatility than the overall stock market because it focuses on technology stocks. - -------------------------------------------------------------------------------- TOP TEN HOLDINGS % of net assets December 31, 2002 PMC-Sierra 5.9 Hollywood Entertainment 3.8 Hewlett-Packard 3.7 Lockheed Martin 3.6 Samsung Electronics 3.3 AT&T Wireless Services 3.3 Microchip Technology 3.1 Microsoft 3.1 Intersil, Class A 3.1 RF Micro Devices 2.7 Because the fund is actively managed, there can be no guarantee the fund will continue to maintain these holdings in the future. ----------------------------- TOP FIVE SECTORS % of net assets December 31, 2002 Technology hardware & equipment 42.1 Software & services 25.2 Commercial services & supplies 6.1 Capital goods 5.5 Retailing 5.2 Because the fund is actively managed, there can be no guarantee the fund will continue to maintain these sectors in the future. - ---------- (1) Holdings are disclosed as of December 31, 2002 and are subject to change. 17 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- COLUMBIA STRATEGIC VALUE FUND - -------------------------------------------------------------------------------- PERFORMANCE OF A $10,000 INVESTMENT 11/9/00 - 12/31/02 without sales charge with sales charge -------------------- ----------------- Class A $ 13,307 $ 12,544 Class B 13,277 12,977 Class D 13,287 13,156 Class Z 13,317 n/a Line Chart: ----------------------------- GROWTH OF $10,000 SINCE INCEPTION
Class A shares Class A shares Russell 3000 With sales charge without sales charge Value Index S&P 500 Index 11/9/00 9425 10000 10000 10000 9227.08 9790 9639 9212 10578.8 11224.2 10157 9257.14 11568 12273.7 10211 9585.77 11549.5 12254.1 9946 8712.5 11295.4 11984.5 9608 8161 12190 12933.6 10077 8794.3 12953 13743.3 10305 8853.22 13160.3 13963.2 10122 8638.08 13085.3 13883.6 10087 8553.43 12878.5 13664.2 9707 8018.84 11616.4 12325.1 8997 7371.72 12003.3 12735.6 8940 7512.52 13096.8 13895.8 9468 8088.73 13730.6 14568.3 9716 8159.91 13759.5 14598.9 9656 8040.78 13872.3 14718.6 9675 7885.59 14694.9 15591.5 10152 8182.09 14628.8 15521.3 9858 7686.25 14647.8 15541.5 9877 7630.14 14042.9 14899.6 9338 7086.88 12852 13636.1 8431 6534.81 12889.3 13675.7 8487 6577.29 11603 12310.8 7567 5862.99 12152.9 12894.4 8096 6378.35 13328.1 14141.2 8614 6753.4 12/31/02 12544 13307 8242 6444
Mutual fund performance changes over time. Please visit libertyfunds.com for daily performance updates. Past performance is no guarantee of future investment results. The principal value and investment returns will fluctuate, resulting in a gain or loss on sale. The above illustration assumes a $10,000 investment made on November 9, 2000, and reinvestment of income and capital gains distributions. The Russell 3000 Value Index measures the performance of those Russell 3000 Index companies with lower price-to-book ratios and lower forecasted growth values. The stocks in this index are also members of either the Russell 1000 Value or the Russell 2000 Value indexes. The S&P 500 Index is an unmanaged index generally considered representative of the US stock market. Unlike the fund, indexes are not investments, do not incur fees and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index. Index performance is from October 31, 2000. - -------------------------------------------------------------------------------- Fund outperformed indexes and peers Although Columbia Strategic Value Fund suffered along with the rest of the stock market and recorded a negative return for 2002, it held up much better than both the broad market and its peers. For the 12-month period ended December 31, 2002, the fund's class A shares recorded a negative 8.63% return, without a sales charge. By comparison, the Russell 3000 Value Index slid 15.18% and the S&P 500 Index declined 22.09%. The fund's peer group, the Lipper Multi-Cap Value Fund Category Average, dipped 17.91% during the same period.(1) The fund's outperformance can be attributed to its emphasis on small- and mid-cap stocks, a defensive positioning early in the year and a timely move into technology and telecommunications stocks in the second half of the period. Economy's strong start faded The economy was off to a strong start in the first half of 2002. In this post September 11 environment, companies rebuilt inventory levels, auto sales were strong and housing was spurred by low mortgage rates. However, the growth started to fade in June through September as economic indicators turned mixed and consumer confidence weakened. Signs of stabilization late in the year buoyed hopes that the recovery would gain momentum in 2003. Tech rally, health care disappointments By mid-year we had allowed the fund's cash position to grow to 25% of net assets. We put much of this cash to work in the technology and telecommunications sectors in the second half of the year. New or increased positions included Autodesk, BEA Systems, Comverse Technology, SAP AG, SBC Communications, Teradyne and others.(2) The fund benefited as technology stocks posted strong gains in October and November. AVERAGE ANNUAL TOTAL RETURN (%) As of December 31, 2002
Class A Class B Class D Class Z - ------------------------------------------------------------------------------------------------------------------------------------ Public offering date 11/1/02 11/1/02 11/1/02 11/9/00 - ------------------------------------------------------------------------------------------------------------------------------------ without with without with with without without sales charge sales charge sales charge sales charge sales charge sales charge sales charge - ------------------------------------------------------------------------------------------------------------------------------------ 1-year -8.63 -13.91 -8.84 -13.35 -8.77 -10.60 -8.56 - ------------------------------------------------------------------------------------------------------------------------------------ Life 14.27 11.16 14.15 12.94 14.19 13.66 14.31 - ------------------------------------------------------------------------------------------------------------------------------------
Past performance is no guarantee of future investment results. The principal value and investment returns will fluctuate, resulting in a gain or loss on sale. All results shown assume reinvestment of distributions, if any. The "with sales charge" returns include the maximum 5.75% charge for class A shares, the appropriate class B contingent deferred sales charge (CDSC) for the holding period after purchase as follows: through first year-5%, second year-4%, third year-3%, fourth year-3%, fifth year-2%, sixth year-1%, thereafter-0%, and the class D sales charge of 1% which also carries a CDSC of 1% that is applied to shares sold within the first year after they are purchased. Performance for different share classes will vary based on differences in sales charges and fees associated with each class. Performance results reflect any voluntary waivers or reimbursement of fund expenses by the advisor or its affiliates. Absent these waivers or reimbursement arrangements, performance results would have been lower. Classes A, B and D (newer class shares) share performance information includes returns of the fund's class Z shares (the oldest existing fund class) for periods prior to the inception of the newer class shares. These class Z share returns are not restated to reflect any differences in expenses (e.g., Rule 12b-1 fees) between class Z shares and the newer class shares. If difference in expenses had been reflected, the returns shown for periods prior to the inception of classes A, B and D would have been lower. 18 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- Disappointments were mostly in the health care and financial sectors. The health care sector was the single largest detractor with both Bristol-Myers Squibb and Schering-Plough performing poorly for the period. Retailers Circuit City Stores and American Eagle Outfitters also did not live up to our expectations. We eliminated our position in American Eagle Outfitters during the period. Continued emphasis in basic materials and capital goods We continued to overweight the basic materials and capital goods areas, which are core elements of most value funds. Many of these holdings benefited from the declining US dollar. In the capital goods area, we added Trinity Industries, Greenbrier (railroad equipment), Rockwell Automation and Precision Castparts. In the basic materials area, we added to our positions in A. Schulman, Votorantim Celulose e Papel (VCP) (Brazilian pulp and paper manufacturer), Rohm & Haas and Georgia-Pacific. Weak dollar benefited foreign holdings We added to our international exposure throughout the year because we believed that there were a number of attractively valued companies abroad with better growth prospects than many domestically-focused US companies. Also, a declining US dollar had the potential to benefit returns from these holdings. Among the names we added were Nokian Renkaat, AO VimpelCom and Stockmann. At year-end, the fund's international exposure stood at about 10% of total investments. Outlook We expect the economy to strengthen again in 2003. If there is a reduction in Mideast tensions and oil prices decline, that could provide an additional lift to economic growth. However, our primary focus continues to anticipate areas with strong earnings potential where stocks are selling at modest valuations. Robert A. Unger Portfolio Manager An investment in the fund may present certain risks, including stock market fluctuations that occur in response to economic and business developments; and a greater degree of social, political and economic volatility associated with international investing. Stocks of small- and mid-cap companies may trade less frequently, may trade smaller volumes and may fluctuate more sharply in price than stocks of larger companies. - -------------------------------------------------------------------------------- TOP TEN HOLDINGS % of net assets December 31, 2002 3M 1.6 Wachovia 1.4 American International Group 1.3 Unilever 1.2 Caterpillar 1.2 Nokian Renkaat 1.0 Samsung Electronics 1.0 SBC Communications 1.0 Temple Inland 1.0 Honeywell International 1.0 Because the fund is actively managed, there can be no guarantee the fund will continue to maintain these holdings in the future. ----------------------------- TOP FIVE SECTORS % of net assets December 31, 2002 Financials 13.0 Industrials 12.4 Consumer discretionary 12.2 Information technology 12.2 Energy 9.3 Because the fund is actively managed, there can be no guarantee the fund will continue to maintain these sectors in the future. - ---------- (1) Lipper Inc., a widely respected data provider in the industry, calculates an average total return for mutual funds with similar investment objectives as those of the fund. (2) Holdings are disclosed as of December 31, 2002 as a percentage of net assets: AO VimpelCom (0.9%), A. Schulman (0.4%), Autodesk (0.5%), BEA Systems (0.4%), Bristol-Myers Squibb (0.9%), Circuit City Stores (0.2%), Comverse Technology (0.5%), Georgia-Pacific (0.8%), Greenbrier (0.1%), Nokian Renkaat (1.0%), Precision Castparts (0.4%), Rockwell Automation (0.3%), Rohm & Haas (0.4%), SAP AG (0.6%), SBC Communications (1.0%), Schering-Plough (0.5%), Stockmann (0.3%), Teradyne (0.5%), Trinity Industries (0.2%) and VCP (0.2%). 19 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- COLUMBIA BALANCED FUND - -------------------------------------------------------------------------------- PERFORMANCE OF A $10,000 INVESTMENT 12/31/92 - 12/31/02 without sales charge with sales charge -------------------- ----------------- Class A $ 20,755 $ 19,567 Class B 20,729 20,729 Class D 20,717 20,509 Class Z 20,760 n/a Line Chart: ----------------------------- GROWTH OF $10,000 OVER 10 YEARS
Class A with Class A without Lehman Brothers sales charge sales charge Aggregate Bond Index S&P 500 Index 12/31/92 9425 10000 10000 10000 9660.63 10250 10084 10192 9818.09 10417.1 10221.1 10370.4 10014.5 10625.4 10436.8 10413.9 9839.2 10439.5 10184.2 10486.8 10042.9 10655.6 10456.2 10500.5 10218.6 10842 10486.5 10690.5 10229.9 10854 10444.5 10751.4 10577.7 11223 10840.4 10939.6 10628.5 11276.9 10756.9 10969.1 10702.9 11355.8 10979.6 11009.7 10559.4 11203.6 10875.3 10916.1 10708.3 11361.6 11006.9 10975.1 10960 11628.6 11381.1 11123.2 10762.7 11419.3 11072.7 10929.7 10439.8 11076.7 10591 10659.7 10487.8 11127.7 10726.6 10574.5 10602.1 11249 10901.4 10573.4 10402.8 11037.5 10634.3 10550.1 10719.1 11373 10983.1 10760.1 10913.1 11578.9 11432.4 10773 10700.3 11353.1 11153.4 10614.6 10718.5 11372.4 11403.2 10605.1 10565.2 11209.8 10988.2 10581.8 10718.4 11372.3 11150.8 10654.8 10867.4 11530.4 11439.6 10865.7 11227.1 11912 11884.6 11124.3 11388.8 12083.6 12235.2 11192.2 11532.3 12235.8 12594.9 11348.9 11932.4 12660.4 13097.4 11788.1 12088.7 12826.2 13401.3 11874.1 12322.1 13073.8 13844.9 11848 12455.1 13215 13879.5 11991.4 12739.1 13516.3 14465.2 12107.7 12720 13496 14413.1 12265.1 13096.5 13895.5 15044.4 12449.1 13405.6 14223.4 15334.8 12623.4 13573.2 14401.2 15856.2 12706.7 13566.4 14394 16003.6 12485.6 13673.5 14507.8 16157.3 12398.2 13726.9 14564.3 16394.8 12328.7 13861.4 14707.1 16816.1 12304.1 13990.3 14843.8 16880 12469 13704.9 14541 16133.9 12502.6 13922.8 14772.2 16474.3 12481.4 14344.7 15219.8 17400.2 12698.5 14515.4 15400.9 17880.5 12980.5 15145.4 16069.3 19230.4 13202.4 14986.3 15900.6 18849.7 13079.6 15355 16291.8 20025.9 13120.2 15399.5 16339 20184.1 13153 15168.5 16093.9 19356.5 13007 15593.2 16544.5 20510.2 13202.1 16114 17097.1 21763.4 13327.5 16597.5 17610 22731.8 13486.1 17543.5 18613.8 24539 13850.2 17010.2 18048 23164.8 13732.5 17491.6 18558.7 24431.9 13934.4 17293.9 18349 23615.9 14136.4 17634.6 18710.5 24709.3 14201.5 17793.3 18878.9 25134.3 14344.9 18042.5 19143.2 25410.8 14528.5 18673.9 19813.2 27242.9 14516.9 19206.2 20377.9 28637.8 14566.2 19315.6 20494 28929.9 14642 19232.6 20405.9 28432.3 14781.1 19876.8 21089.5 29586.6 14906.7 19793.4 21000.9 29273 14938 18306.9 19423.8 25043.1 15181.5 18931.2 20086.1 26648.3 15536.8 19544.5 20736.9 28812.2 15454.4 20267.7 21504.2 30558.2 15542.5 21366.2 22669.7 32318.3 15589.1 21975.1 23315.8 33669.2 15699.8 21487.3 22798.2 32622.1 15425.1 22187.8 23541.4 33927 15509.9 22400.8 23767.4 35240 15559.5 21963.9 23303.9 34408.3 15422.6 22715.1 24100.9 36311.1 15373.3 22265.3 23623.7 35181.8 15307.1 22002.6 23345 35005.9 15299.5 21899.2 23235.2 34046.8 15477 22578.1 23955.5 36201.9 15534.2 23059 24465.8 36936.8 15532.7 24075.9 25544.7 39108.7 15458.1 23519.7 24954.6 37145.4 15407.1 24201.8 25678.3 36443.4 15593.5 25741 27311.5 40007.6 15799.4 25203.1 26740.7 38803.3 15753.6 24575.5 26074.8 38007.9 15745.7 25389 26937.9 38942.9 16073.2 25310.2 26854.4 38335.3 16219.5 26396.1 28006.4 40716 16454.6 25282.1 26824.6 38566.2 16558.3 24908 26427.5 38404.2 16667.6 23854.4 25309.7 35377.9 16940.9 24276.6 25757.7 35551.3 17256 24720.8 26229 36813.4 17539 23165.9 24579.2 33459.7 17691.6 22373.6 23738.6 31341.7 17780.1 23342.4 24766.5 33773.8 17705.4 23449.8 24880.4 34000.1 17811.6 23119.1 24529.6 33173.9 17879.3 23054.4 24460.9 32848.8 18279.8 22217.5 23573 30795.7 18490 21102.2 22389.6 28310.5 18706.4 21511.6 22824 28851.2 19097.3 22354.8 23718.7 31064.1 18833.8 22480 23851.5 31337.5 18713.3 22165.3 23517.6 30880 18864.8 21970.3 23310.6 30284 19047.8 22286.6 23646.3 31422.7 18731.6 21542.3 22856.5 29518.4 19095 21619.8 22938.8 29303 19257.3 20711.8 21975.4 27216.6 19423 19653.4 20852.4 25096.4 19658 19918.7 21133.9 25259.5 19990.2 18805.3 19952.5 22516.3 20314 19527.4 20718.7 24495.5 20220.6 20283.1 21520.5 25935.9 20214.5 12/31/02 19567 20755 24413.4 20633
Mutual fund performance changes over time. Please visit libertyfunds.com for daily performance updates. Past performance is no guarantee of future investment results. The principal value and investment returns will fluctuate, resulting in a gain or loss on sale. The above illustration assumes a $10,000 investment made on December 31, 1992, and reinvestment of income and capital gains distributions. The Lehman Brothers Aggregate Bond Index is an unmanaged index that represents average market-weighted performance of U.S. Treasury and agency securities, investment-grade corporate bonds, and mortgage-backed securities with maturities greater than one year. The S&P 500 Index tracks the performance of 500 large-capitalization US Stocks. Unlike the fund, indexes are not investments, do not incur fees, and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index. - -------------------------------------------------------------------------------- For the 12 months ended December 31, 2002, the fund's class A shares returned negative 12.99%, without a sales charge. Positive performance from our fixed-income investments helped the fund outperform the S&P 500 Index, which returned negative 22.09% in 2002. Over the same year-long period, the Lehman Brothers Aggregate Bond Index gained 10.25%. Volatility triggers flight to quality After a strong start early in the year, stocks headed sharply south in the second and third quarters amid a weak economic recovery, the growing possibility of war with Iraq and a rash of corporate accounting scandals. Uncertainty about corporate America's profit outlook led investors to more defensive sectors, including consumer staples and select areas of health care and finance, although all major sectors of the market were down for the year. The stock market rallied in the fourth quarter as investors took advantage of lower valuations in sectors such as technology and telecommunications. As investors backed away from risky sectors of the market, government bonds benefited. US Treasuries and mortgage-backed securities turned in solid returns. Corporate bonds also gained, but did not perform up to expectations due to the same concerns about financial reporting that affected stocks and high-yield bonds. Bonds with higher credit quality took the lead for most of the year, although lower-quality bonds rallied in the fourth quarter. Cyclical bias hurts, mortgage stake helps Expecting an economic recovery, we positioned the equity portion of the fund with a heavy weighting in cyclical (or economically sensitive) companies. Among the sectors we favored were basic industries, consumer cyclicals, media and technology. Our slightly above-average investment in advertising-sensitive media companies, such as AOL AVERAGE ANNUAL TOTAL RETURN (%) As of December 31, 2002
Class A Class B Class D Class Z - ------------------------------------------------------------------------------------------------------------------------------------ Public offering date 11/1/02 11/1/02 11/1/02 10/1/91 - ------------------------------------------------------------------------------------------------------------------------------------ without with without with without with without sales charge sales charge sales charge sales charge sales charge sales charge sales charge - ------------------------------------------------------------------------------------------------------------------------------------ 1-year -12.99 -17.99 -13.10 -17.34 -13.15 -14.86 -12.97 - ------------------------------------------------------------------------------------------------------------------------------------ 5-year 1.91 0.71 1.89 1.58 1.87 1.67 1.92 - ------------------------------------------------------------------------------------------------------------------------------------ 10-year 7.58 6.94 7.56 7.56 7.56 7.45 7.58 - ------------------------------------------------------------------------------------------------------------------------------------
Past performance is no guarantee of future investment results. The principal value and investment returns will fluctuate, resulting in a gain or loss on sale. All results shown assume reinvestment of distributions, if any. The "with sales charge" returns include the maximum 5.75% charge for class A shares, the appropriate class B contingent deferred sales charge (CDSC) for the holding period after purchase as follows: through first year-5%, second year-4%, third year-3%, fourth year-3%, fifth year-2%, sixth year-1%, thereafter-0%, and the class D sales charge of 1% which also carries a CDSC of 1% that is applied to shares sold within the first year after they are purchased. Performance for different share classes will vary based on differences in sales charges and fees associated with each class. Performance results reflect any voluntary waivers or reimbursement of fund expenses by the advisor or its affiliates. Absent these waivers or reimbursement arrangements, performance results would have been lower. Classes A, B, and D (newer class shares) share performance information includes returns of the fund's class Z shares (the oldest existing fund class) for periods prior to the inception of the newer class shares. These class Z share returns are not restated to reflect any expense differential (e.g., Rule 12b-1 fees) between class Z shares and the newer class shares. Had the expense differential been reflected, the returns for the periods prior to the inception of classes A, B and D would have been lower. 20 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- Time Warner (0.8% of net assets), and our reduced stake in more defensive consumer staples stocks, including food and beverage companies, especially hurt performance.(1) Poor performers this period included Citigroup, which was hurt by its ties to Wall Street scandals; Tyco International, which we reduced and later bought back; and Micron Technology, a semiconductor company (2.1%, 0.8% and 0.1% of net assets, respectively). Some of the fund's strongest gains in the fixed income portion of the portfolio came from the mortgage sector. Here we focused on bonds with low coupons (or stated interest rates). These bonds carried the least prepayment risk, which is the risk that underlying mortgages would be paid off early as homeowners took advantage of low interest rates and refinanced. Our increased stake in Treasuries also benefited performance, while our above-average investment in corporate bonds and small position in high-yield bonds detracted from returns. Over the year, our corporate stake decreased, as we reduced our investment in individual issues, trimmed the number of bonds we held and focused on higher quality securities. Outlook is brighter for 2003 We expect stocks to have a more positive impact on fund performance in 2003. We plan to increase our cyclical exposure in anticipation of improvements in the economy, earnings and capital spending. We are encouraged that some leading indicators have turned positive and corporate profits have improved. Our hope is that many of the problems and uncertainties that plagued 2002 will be resolved in 2003. Until then, we will try to take advantage of opportunities created by continued market volatility. On the fixed-income side, we believe the best returns are likely to come from bonds with a yield advantage over Treasuries. Our plan is to maintain a large concentration in mortgages, add to our stake in corporate bonds and prepare for the possibility of rising interest rates. Leonard A. Aplet, Scott J. Drysdale, Ron F. Gibbs, Ajay Mehra, Guy W. Pope and Jeffrey L. Rippey On behalf of the Columbia Balanced Fund Team An investment in the fund may present certain risks, including stock market fluctuations that occur in response to economic and business developments. The fund is also subject to risks associated with investments in bonds, including interest rate risk, credit risk and prepayment risk. - -------------------------------------------------------------------------------- TOP TEN EQUITY HOLDINGS % of net assets December 31, 2002 Microsoft 2.6 Citigroup 2.1 Wal-Mart Stores 2.0 American International Group 1.6 General Electric 1.4 Bank of America 1.4 SBC Communications 1.2 Pfizer 1.2 American Express 1.2 Pharmacia 1.1 Because the fund is actively managed, there can be no guarantee the fund will continue to maintain these holdings in the future. ----------------------------- PORTFOLIO COMPOSITION % of net assets December 31, 2002 [THE FOLLOWING TABLE WAS DEPICTED AS A PIE CHART IN THE PRINTED MATERIAL.] Repurchase agreement, cash, net receivables & payables 2.4 Commercial mortgage backed securities 2.1 Common & preferred stocks 55.4 Corporate notes & bonds 14.6 Pass through 3.0 Collateralized mortgage obligations 3.2 Government issues 12.2 Asset-back securities 4.4 Depository receipts 2.7 Because the fund is actively managed, there can be no guarantee the fund will continue to maintain this composition in the future. - ---------- (1) Holdings are disclosed as of December 31, 2002 and are subject to change. 21 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- COLUMBIA SHORT TERM BOND FUND - -------------------------------------------------------------------------------- PERFORMANCE OF A $10,000 INVESTMENT 12/31/92 - 12/31/02 without sales charge with sales charge -------------------- ----------------- Class A $ 16,984 $ 16,171 Class B 16,955 16,955 Class D 16,974 16,813 Class G 16,970 16,970 Class T 16,986 16,173 Class Z 16,992 n/a Line Chart: ----------------------------- GROWTH OF $10,000 OVER 10 YEARS
Class A shares Class A shares Merrill Lynch 1-5 Merrill Lynch 1-3 With sales charge without sales charge Year Gov't/Corp Index Treasury Index 12/31/92 9525 10000 10000 10000 9649.78 10131 10154 10104 9771.36 10258.6 10278.9 10189.9 9789.93 10278.1 10319 10221.5 9866.29 10358.3 10398.4 10283.8 9816.96 10306.5 10370.4 10255 9905.31 10399.3 10477.2 10330.9 9913.24 10407.6 10500.2 10355.7 10026.2 10526.2 10626.2 10444.8 10044.3 10545.2 10664.5 10479.2 10062.4 10564.2 10688 10500.2 10044.3 10545.2 10668.7 10503.4 10086.5 10589.5 10713.5 10542.2 10141.9 10647.7 10803.5 10609.7 10060.8 10562.5 10696.5 10540.7 10007.5 10506.5 10599.2 10489.1 9978.44 10476.1 10537.7 10451.3 9988.42 10486.5 10552.5 10465.9 10011.4 10510.6 10574.6 10497.3 10086.5 10589.5 10686.8 10587.6 10114.7 10619.1 10725.2 10624.7 10083.4 10586.2 10669.5 10600.2 10102.5 10606.3 10684.4 10623.5 10072.2 10574.5 10628.8 10575.8 10083.3 10586.1 10655.4 10600.1 10208.3 10717.4 10817.4 10747.4 10316.5 10831 11002.3 10894.6 10369.1 10886.2 11068.4 10956.8 10458.3 10979.9 11182.4 11054.3 10625.7 11155.5 11444 11248.8 10673.5 11205.8 11512.7 11309.6 10706.6 11240.5 11542.6 11355.9 10766.5 11303.4 11622.3 11424.1 10812.8 11352 11688.5 11480 10913.4 11457.6 11803.1 11577.6 11025.8 11575.6 11928.2 11679.5 11111.8 11665.9 12034.3 11769.4 11210.7 11769.7 12141.4 11869.5 11131.1 11686.2 12058.9 11819.6 11081 11633.6 12022.7 11809 11069.9 11622 12010.7 11817.3 11075.5 11627.8 12019.1 11843.3 11161.8 11718.5 12122.5 11928.5 11197.6 11756 12166.1 11975 11218.8 11778.3 12195.3 12015.8 11336.6 11902 12329.4 12125.1 11471.5 12043.6 12499.6 12262.1 11562.2 12138.8 12620.8 12356.5 11541.4 12116.9 12588 12356.5 11589.8 12167.8 12643.4 12415.9 11606 12184.8 12666.2 12444.4 11572.4 12149.5 12635.8 12439.4 11678.9 12261.3 12757.1 12541.4 11744.3 12329.9 12850.2 12626.7 11821.8 12411.3 12950.4 12713.8 11958.9 12555.3 13140.8 12853.7 11950.5 12546.5 13122.4 12865.3 12028.2 12628 13244.4 12963 12122 12726.5 13363.6 13059 12126.9 12731.6 13389 13090.3 12206.9 12815.7 13488.1 13178 12330.2 12945.1 13645.9 13305.8 12315.4 12929.6 13643.2 13317.8 12349.9 12965.8 13697.8 13372.4 12412.9 13031.9 13763.5 13435.3 12477.4 13099.7 13847.5 13506.5 12526.1 13150.8 13927.8 13576.7 12576.2 13203.4 13989.1 13640.5 12746 13381.6 14191.9 13812.4 12929.5 13574.3 14445.9 13994.7 12992.9 13640.8 14493.6 14063.3 12946.1 13591.7 14473.3 14050.6 12992.7 13640.6 14526.9 14101.2 13036.9 13687 14599.5 14157.6 12935.2 13580.2 14468.1 14088.2 13024.4 13674 14586.7 14186.9 13050.5 13701.3 14634.9 14232.3 13015.2 13664.3 14577.8 14223.7 13056.9 13708 14620.1 14267.8 13084.3 13736.8 14636.2 14313.5 13096.1 13749.2 14665.4 14355 13172 13828.9 14784.2 14448.3 13186.5 13844.1 14818.2 14487.3 13199.7 13858 14841.9 14514.8 13224.8 13884.3 14844.9 14535.1 13212.9 13871.8 14813.7 14529.3 13294.8 13957.8 14917.4 14626.7 13348 14013.6 15033.8 14717.4 13384 14051.5 15044.3 14755.6 13438.9 14109.1 15087.9 14816.1 13543.7 14219.1 15287.1 14970.2 13600.6 14278.9 15395.6 15066 13691.8 14374.5 15538.8 15177.5 13749.3 14434.9 15678.7 15286.8 13808.4 14497 15749.2 15369.3 13961.6 14657.9 15930.3 15515.4 14186.4 14893.9 16161.3 15700 14360.9 15077.1 16395.7 15896.2 14478.7 15200.7 16523.5 15999.5 14584.4 15311.7 16673.9 16132.4 14600.4 15328.5 16683.9 16175.9 14685.1 15417.4 16782.3 16266.5 14736.5 15471.4 16844.5 16321.8 14962 15708.1 17114 16504.6 15083.2 15835.3 17238.9 16600.3 15286.8 16049.1 17547.5 16874.2 15473.3 16244.9 17754.5 17034.5 15372.7 16139.3 17648 16997.1 15334.3 16099 17610.9 17003.9 15391 16158.5 17662 17037.9 15460.3 16231.3 17771.5 17119.7 15372.1 16138.7 17593.8 17003.2 15558.1 16334 17836.6 17193.7 15653.1 16433.7 17973.9 17262.5 15745.4 16530.6 18130.3 17407.5 15838.3 16628.1 18362.4 17619.8 15950.8 16746.2 18518.5 17679.7 16116.6 16920.4 18753.6 17826.5 16029.6 16829 18751.8 17867.5 16032.8 16832.4 18721.8 17813.9 12/31/02 16171 16984 19006.3 17981.3
Mutual fund performance changes over time. Please visit libertyfunds.com for daily performance updates. Past performance is no guarantee of future investment results. The principal value and investment returns will fluctuate, resulting in a gain or loss on sale. The above illustration assumes a $10,000 investment made on December 31, 1992, and reinvestment of income and capital gains distributions. The Merrill Lynch 1-5 Year Government/Corporate Index is an unmanaged index that includes all US government debt with at least $100 million face value outstanding, as well as investment-grade rated corporate debt with at least $100 million face value outstanding and a maturity of 1-5 years. The Merrill Lynch 1-3 Year Treasury Index is an unmanaged index that measures the return of Treasury bills with maturities of 1-3 years and is intended to provide a benchmark for the prior investment objective and strategy of the fund. Unlike the fund, indexes are not investments, do not incur fees, and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index. - -------------------------------------------------------------------------------- For the 12-month period ended December 31, 2002, the class A shares of Columbia Short Term Bond Fund returned 5.51%, without sales charge. By comparison, the Merrill Lynch 1-5 Year Government/Corporate Index returned 7.91%. The Merrill Lynch 1-3 Year Treasury Index returned 5.76%, and the Lipper Short Investment Grade Debt Category returned an average of 4.37%.(1) The fund's performance for the year was strong versus its peer group but less than its benchmark indexes. This performance was primarily the result of our overweighting in corporate bonds, which were weak performers this period. Short-term rates fall At the beginning of 2002, signs of an economic recovery and expectations that the Federal Reserve would raise short-term interest rates caused bond yields to rise. But, a string of corporate scandals, terrorist threats and unrest in the Middle East undermined investor confidence. As concerns of a double-dip recession persisted into the fall, the Fed cut the federal funds target rate on November 6 by one-half percentage point--from 1.75% to 1.25%. These events caused bond yields to fall through the second and third quarters of the year. Growth was elusive as inflation remained tame Economic growth started off strong in the first quarter, but became mixed as the year progressed. For the first quarter of 2002, the gross domestic product (GDP) growth rate was 5%. The rate then declined to 1.3% in the second quarter and rose again to 4% in the third quarter. At year end, expectations were that the fourth quarter growth rate would be only half as much as the third quarter, or even less. Inflation remained benign during 2002, rising from 1.5% at the beginning of the year to 2.4% at year-end. Despite the overall rise, inflation actually declined after subtracting volatile prices in the food and energy sectors. AVERAGE ANNUAL TOTAL RETURN (%) As of December 31, 2002
Class A Class B Class D - --------------------------------------------------------------------------------------------------------- Public offering date 11/1/02 11/1/02 11/1/02 - --------------------------------------------------------------------------------------------------------- without with without with without with sales charge sales charge sales charge sales charge sales charge sales charge - --------------------------------------------------------------------------------------------------------- 1-year 5.51 0.46 5.33 0.33 5.45 3.36 - --------------------------------------------------------------------------------------------------------- 5-year 5.79 4.77 5.76 5.43 5.78 5.58 - --------------------------------------------------------------------------------------------------------- 10-year 5.44 4.92 5.42 5.42 5.43 5.33 - --------------------------------------------------------------------------------------------------------- Class G Class T Class Z - ------------------------------------------------------------------------------------------ Public offering date 11/1/02 11/1/02 11/6/86 - ------------------------------------------------------------------------------------------ without with without with without sales charge sales charge sales charge sales charge sales charge - ------------------------------------------------------------------------------------------ 1-year 5.42 0.42 5.52 0.47 5.56 - ------------------------------------------------------------------------------------------ 5-year 5.77 5.29 5.79 4.78 5.80 - ------------------------------------------------------------------------------------------ 10-year 5.43 5.43 5.44 4.92 5.44 - ------------------------------------------------------------------------------------------
Past performance is no guarantee of future investment results. The principal value and investment returns will fluctuate, resulting in a gain or loss on sale. All results shown assume reinvestment of distributions, if any. The "with sales charge" returns include the maximum 4.75% charge for class A shares, the appropriate class B contingent deferred sales charge (CDSC) for the holding period after purchase as follows: through first year-5%, second year-4%, third year-3%, fourth year-3%, fifth year-2%, sixth year-1%, thereafter-0%, and the class D sales charge of 1% which also carries a CDSC of 1% that is applied to shares sold within the first year after they are purchased. For class G shares, the CDSC for the holding period after purchase is as follows: through first year-5%, second year-4%, third year-4%, fourth year-4%, fifth year-3%, sixth year-2%, seventh year-%, thereafter-0%. For class T shares, the "with sales charge" returns include the maximum 4.75% charge. Performance for different share classes will vary based on differences in sales charges and fees associated with each class. Performance results reflect any voluntary waivers or reimbursement of fund expenses by the advisor or its affiliates. Absent these waivers or reimbursement arrangements, performance results would have been lower. Classes A, B, D, G and T (newer class shares) share performance information includes returns of the fund's class Z shares (the oldest existing fund class) for periods prior to the inception of the newer class shares. These class Z share returns are not restated to reflect any expense differential (e.g., Rule 12b-1 fees) between class Z shares and the newer class shares. Had the expense differential been reflected, the returns for the periods prior to the inception of classes A, B, D, G and T would have been lower. 22 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- Corporate bonds faltered, Treasuries gained favor Investment-grade corporate bonds performed well during the first four months of the year. However, as the economy and stock market weakened, the sector gave back its gains. Treasuries rallied as investors fled to safe havens. The bond market reversed course again in November when the Fed cut the federal funds rate. This rate cut caused corporate bonds to rally during the last quarter of the year. Emphasis on higher quality We increased the fund's overall credit quality by reducing the fund's exposure to corporate bonds and increasing holdings in Treasuries. The fund began the year with an overall portfolio of above-average credit quality, compared to the Merrill Lynch 1-5 Year Government/Corporate Index. Nevertheless, we continued to direct assets into higher quality securities, including Treasuries and mortgage- and asset-backed securities. At year end, the fund's average credit quality was AA+/AAA. Managing the fund's risk exposure At the start of the year, the fund was overweighted in utility bonds and had positions in the bonds of several large telecommunications companies. Both sectors were plagued by corporate scandals, the weak economy and credit downgrades. TXU Eastern Funding, a utility company, was unexpectedly downgraded to "junk" bond status, causing us to sell the position at a loss. As the year progressed, we pared back our exposure in these more volatile areas and upgraded the overall credit quality of our corporate holdings. We also continued to reduce the size of the fund's individual holdings in an attempt to minimize the impact of other surprise rating downgrades. We also took a cautious approach during the year to duration, which measures a fund's sensitivity to changing interest rates. At no point was the fund's duration longer than either of its benchmarks. Outlook We believe that interest rates on short-term bonds are likely to remain close to year-end levels. A large federal budget deficit and improving economy would generally be unfavorable for longer-term bonds. However, they would most likely have less impact on short-term bond prices. In addition, corporate yield spreads--the difference between the yield on corporate bonds and Treasury bonds with the same maturity--were wide at the end of the year. We think that makes corporate bonds attractive, especially if the economy improves in 2003. Leonard A. Aplet and Jeffrey L. Rippey Portfolio Managers The fund offers the potential for current income and capital preservation but is subject to interest rate risk and prepayment risk. - -------------------------------------------------------------------------------- PORTFOLIO COMPOSITION % of net assets December 31, 2002 Corporate notes & bonds 32.9 Collateralized mortgage obligations 16.1 Mortgage-backed securities 14.5 Government issues 13.8 Asset-backed securities 13.7 Cash, net receivables & payables 8.4 Commercial mortgage-backed securities 0.6 Because the fund is actively managed, there can be no guarantee the fund will continue to maintain this composition in the future. ----------------------------- PORTFOLIO QUALITY % of portfolio holdings December 31, 2002 [THE FOLLOWING TABLE WAS DEPICTED AS A PIE CHART IN THE PRINTED MATERIAL.] Treasury 8.7 Agency 24.9 Aaa 34.8 Aa 8.1 A 17.6 Bbb 5.9 Ratings shown represent the highest rating assigned to a particular bond by one of the nationally-recognized ratings agencies: Standard and Poor's Corporation, Moody's Investors Service, Inc. or Fitch Investors Service, Inc. - ---------- Portfolio composition and portfolio quality are disclosed as of December 31, 2002 and are subject to change. (1) Lipper, Inc., a widely respected data provider in the industry, calculates an average total return for mutual funds with similar investment objectives as the fund. 23 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- COLUMBIA FIXED INCOME SECURITIES FUND - -------------------------------------------------------------------------------- PERFORMANCE OF A $10,000 INVESTMENT 12/31/92 - 12/31/02 without sales charge with sales charge -------------------- ----------------- Class A $ 19,688 $ 18,756 Class B 19,661 19,661 Class D 19,667 19,476 Class Z 19,704 n/a Line Chart: ----------------------------- GROWTH OF $10,000 OVER 10 YEARS Lehman Brothers Class A shares Class A shares Aggregate With sales charge without sales charge Bond Index 12/31/92 9525 10000 10000 9759.32 10246 10192 9939.86 10435.5 10370.4 9979.62 10477.3 10413.9 10054.5 10555.9 10486.8 10040.4 10541.1 10500.5 10268.3 10780.4 10690.5 10327.9 10842.9 10751.4 10551 11077.1 10939.6 10579.4 11107 10969.1 10609.1 11138.1 11009.7 10470.1 10992.2 10916.1 10521.4 11046.1 10975.1 10666.6 11198.5 11123.2 10447.9 10968.9 10929.7 10201.3 10710.1 10659.7 10118.7 10623.3 10574.5 10110.6 10614.8 10573.4 10093.4 10596.8 10550.1 10272.1 10784.3 10760.1 10280.3 10793 10773 10134.3 10639.7 10614.6 10112 10616.3 10605.1 10088.8 10591.9 10581.8 10166.5 10673.4 10654.8 10361.6 10878.4 10865.7 10596.9 11125.3 11124.3 10668.9 11201 11192.2 10825.8 11365.6 11348.9 11257.7 11819.1 11788.1 11347.8 11913.6 11874.1 11318.2 11882.7 11848 11460.9 12032.4 11991.4 11585.8 12163.5 12107.7 11737.6 12322.9 12265.1 11917.1 12511.4 12449.1 12088.8 12691.6 12623.4 12162.5 12769 12706.7 11937.5 12532.8 12485.6 11858.7 12450.1 12398.2 11767.4 12354.2 12328.7 11741.5 12327 12304.1 11907 12500.8 12469 11926.1 12520.8 12502.6 11916.6 12510.8 12481.4 12131.1 12736 12698.5 12388.2 13006 12980.5 12617.4 13246.6 13202.4 12497.6 13120.8 13079.6 12547.5 13173.3 13120.2 12586.4 13214.1 13153 12453 13074 13007 12636.1 13266.2 13202.1 12753.6 13389.6 13327.5 12900.3 13543.6 13486.1 13255 13916 13850.2 13137.1 13792.2 13732.5 13326.2 13990.8 13934.4 13528.8 14203.5 14136.4 13569.4 14246.1 14201.5 13692.9 14375.7 14344.9 13857.2 14548.2 14528.5 13846.1 14536.6 14516.9 13877.9 14570 14566.2 13950.1 14645.8 14642 14088.2 14790.8 14781.1 14202.3 14910.6 14906.7 14223.6 14932.9 14938 14455.5 15176.3 15181.5 14730.1 15464.7 15536.8 14600.5 15328.6 15454.4 14661.8 15393 15542.5 14713.1 15446.9 15589.1 14817.6 15556.5 15699.8 14533.1 15257.9 15425.1 14626.1 15355.5 15509.9 14674.4 15406.2 15559.5 14499.8 15222.8 15422.6 14436 15155.9 15373.3 14339.2 15054.3 15307.1 14310.5 15024.2 15299.5 14486.6 15209 15477 14527.1 15251.6 15534.2 14544.6 15269.9 15532.7 14487.8 15210.3 15458.1 14402.4 15120.6 15407.1 14549.3 15274.8 15593.5 14734 15468.8 15799.4 14682.5 15414.7 15753.6 14670.7 15402.3 15745.7 14989.1 15736.6 16073.2 15095.5 15848.3 16219.5 15325 16089.2 16454.6 15432.2 16201.8 16558.3 15517.1 16290.9 16667.6 15799.5 16587.4 16940.9 16120.2 16924.2 17256 16405.6 17223.7 17539 16548.3 17373.5 17691.6 16637.7 17467.4 17780.1 16532.8 17357.3 17705.4 16643.6 17473.6 17811.6 16691.9 17524.3 17879.3 17074.1 17925.6 18279.8 17238 18097.7 18490 17419 18287.7 18706.4 17770.9 18657.1 19097.3 17548.8 18423.9 18833.8 17431.2 18300.5 18713.3 17537.5 18412.1 18864.8 17679.6 18561.2 19047.8 17430.3 18299.5 18731.6 17752.8 18638.1 19095 17887.7 18779.7 19257.3 17953.9 18849.2 19423 18126.2 19030.2 19658 18436.2 19355.6 19990.2 18705.3 19638.2 20314 18488.4 19410.4 20220.6 18468 19389 20214.5 12/31/02 18755.8 19688 20633 Mutual fund performance changes over time. Please visit libertyfunds.com for daily performance updates. Past performance is no guarantee of future investment results. The principal value and investment returns will fluctuate, resulting in a gain or loss on sale. The above illustration assumes a $10,000 investment made on December 31, 1992, and reinvestment of income and capital gains distributions. The Lehman Brothers Aggregate Bond Index is a market value-weighted index that tracks the daily price, coupon, pay-downs, and total return performance of fixed-rate, publicly placed, dollar-denominated, and non-convertible investment grade debt issues with at least $100 million per amount outstanding and with at least one year to final maturity. Unlike the fund, indexes are not investments, do not incur fees and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index. - -------------------------------------------------------------------------------- For the 12-month period ended December 31, 2002, Columbia Fixed Income Securities Fund class A shares returned 7.56%, without a sales charge. By comparison, the Lehman Brothers Aggregate Bond Index returned 10.25%. The fund's underperformance was primarily the result of an overweighting in corporate bonds, which were weak performers during the period. Fund performance was also hindered by disappointments from a few individual corporate and high-yield issues. After false start, rates fell Despite robust growth in the first quarter of 2002, economic signals became mixed, the stock market sputtered and interest rate increases that many investors were expecting failed to materialize. Reflecting the Federal Reserve's concerns over the economy's continued weakness, the federal funds rate--the target overnight interest rate at which commercial banks lend money to each other--was lowered in November from 1.75% to 1.25%. Longer-term bond yields fell throughout most of the year, especially those in the intermediate (two to 10-year) maturity range. Mortgage rates declined along with other interest rates and that helped keep the US economy chugging along. Lower mortgage rates spurred refinancing activity and helped prop up spending, as consumers continued to purchase both big-ticket items (such as automobiles) and smaller-ticket retail items. Fears of robust growth gave way to weakness The deceleration of economic growth during the period was significant. During the first quarter of 2002, the US gross domestic product (GDP) was 5.0%, but fell to 1.3% in the second quarter. GDP growth rose in the third quarter to 4.0%. At year end, expectations were that fourth quarter GDP growth could be half as much as the third quarter, or even less. Inflation remained benign during 2002, rising from 1.5% AVERAGE ANNUAL TOTAL RETURN (%) As of December 31, 2002
Class A Class B Class D Class Z - ------------------------------------------------------------------------------------------------------------------------------------ Public offering date 11/1/02 11/1/02 11/1/02 2/25/83 - ------------------------------------------------------------------------------------------------------------------------------------ without with without with without with without sales charge sales charge sales charge sales charge sales charge sales charge sales charge - ------------------------------------------------------------------------------------------------------------------------------------ 1-year 7.56 2.44 7.41 2.41 7.44 5.41 7.65 - ------------------------------------------------------------------------------------------------------------------------------------ 5-year 6.49 5.46 6.46 6.15 6.47 6.25 6.51 - ------------------------------------------------------------------------------------------------------------------------------------ 10-year 7.01 6.49 6.99 6.99 7.00 6.89 7.02 - ------------------------------------------------------------------------------------------------------------------------------------
Past performance is no guarantee of future investment results. The principal value and investment returns will fluctuate, resulting in a gain or loss on sale. All results shown assume reinvestment of distributions, if any. The "with sales charge" returns include the maximum 4.75% charge for class A shares, the appropriate class B contingent deferred sales charge (CDSC) for the holding period after purchase as follows: through first year-5%, second year-4%, third year-3%, fourth year-3%, fifth year-2%, sixth year-1%, thereafter-0%, and the class D sales charge of 1% which also carries a CDSC of 1% that is applied to shares sold within the first year after they are purchased. Performance for different share classes will vary based on differences in sales charges and fees associated with each class. Performance results reflect any voluntary waivers or reimbursement of fund expenses by the advisor or its affiliates. Absent these waivers or reimbursement arrangements, performance results would have been lower. Classes A, B and D (newer class shares) share performance information includes returns of the fund's class Z shares (the oldest existing fund class) for periods prior to the inception of the newer class shares. These class Z share returns are not restated to reflect any differences in expenses (e.g., Rule 12b-1 fees) between class Z shares and the newer class shares. If difference in expenses had been reflected, the returns shown for periods prior to the inception of classes A, B and D would have been lower. 24 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- at the beginning of the year to 2.4% at year end. Despite the overall rise, inflation actually declined after subtracting the volatile food and energy sectors. What helped in the first half hurt in the second Investment-grade corporate bonds and high-yield securities performed well early in the calendar year, but these sectors gave back gains when it became apparent that the economic recovery was losing ground. The November cut in the federal funds rate helped corporate and high-yield bonds to generate a brief recovery in the fourth quarter. A shift to higher quality Over the year we increased the overall credit quality of the fund's portfolio by shifting assets out of corporate bonds and into Treasuries. The fund began the year overweighted in corporate bonds (42% of net assets), including high-yield bonds (6.7% of net assets).(1) By the end of the year, this weighting had been reduced to 33% of net assets, reflecting some reductions in the high-yield area (to 4.5%), but mostly decreases in investment-grade corporates. We redirected these assets into higher quality securities, including Treasuries and mortgage- and asset-backed securities. At year end the fund's weighted average credit quality was AA+. We also upgraded the overall credit quality of our corporate holdings. At the beginning of 2002 the fund was overweighted in utility bonds and had positions in the bonds of several large telecommunications companies. Both sectors were plagued by corporate scandals and a weak economy. The fund was not immune to the credit downgrades in this area. TXU Eastern Funding was one example of a utility holding that held back performance. It was unexpectedly downgraded to "junk" bond status, causing us to sell the position at a loss. Throughout the year, we pared back our exposure to those more volatile areas. Managing risk With an eye toward managing individual security risk, we continued to reduce the size of the fund's individual holdings so that the impact of any future downgrade would be less significant. We also took a cautious approach to duration, which measures a fund's sensitivity to changing interest rates. At no point was the fund's duration longer than its benchmark. The fund closed the year with a duration of 3.7 years. Outlook We think that intermediate and long-term interest rates are likely to stay close to current levels for the first half of 2003, and we believe that the Fed is likely to leave short-term interest rates unchanged. For bonds with longer maturities, a bigger federal budget deficit and improving economy generally would be unfavorable. However, corporate yield spreads--the difference between the yield on corporate bonds and Treasury bonds with the same maturity--were wide at the end of the year. We think that makes them attractive, especially if the economy improves in 2003. Leonard A. Aplet and Jeffrey L. Rippey Portfolio Managers The fund offers the potential for current income and capital preservation but is subject to interest rate risk, credit risk and prepayment risk. - -------------------------------------------------------------------------------- PORTFOLIO COMPOSITION % of net assets December 31, 2002 Corporate notes & bonds 32.4 Government issues 21.6 Mortgage-backed securities 21.3 Asset-backed securities 8.6 Collateralized mortgage obligations 8.3 Cash, net receivables & payables 7.8 Because the fund is actively managed, there can be no guarantee the fund will continue to maintain this composition in the future. ----------------------------- PORTFOLIO QUALITY % of portfolio holdings December 31, 2002 [THE FOLLOWING TABLE WAS DEPICTED AS A PIE CHART IN THE PRINTED MATERIAL.] Treasury/Agency 40.7 AAA 27.7 AA 5.4 A 15.0 BBB 6.8 BB 2.6 B 1.8 Ratings shown represent the highest rating assigned to a particular bond by one of the nationally-recognized ratings agencies: Standard and Poor's Corporation, Moody's Investors Service, Inc. or Fitch Investors Service, Inc. - ---------- (1) Portfolio composition and portfolio quality are disclosed as of December 31, 2002, and are subject to change. 25 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- COLUMBIA NATIONAL MUNICIPAL BOND FUND - -------------------------------------------------------------------------------- PERFORMANCE OF A $10,000 INVESTMENT 2/24/99 - 12/31/02 without sales charge with sales charge -------------------- ----------------- Class A $ 12,205 $ 11,623 Class B 12,191 11,891 Class D 12,195 12,074 Class Z 12,209 n/a Line Chart: ----------------------------- GROWTH OF $10,000 SINCE INCEPTION Lehman Brothers Class A shares Class A shares Municipal with sales charge without sales charge Bond Index 2/24/99 525 10000 10000 9462 9934 10000 9449 9920.09 10014 9478 9950.84 10039 9423 9893.13 9980.8 9271 9732.86 9837.1 9304 9767.9 9872.5 9212 9671.2 9793.5 9216 9675.07 9797.4 9112 9566.7 9691.6 9214 9673.85 9794.4 9152 9608.07 9720.9 9089 9542.73 9678.1 9183 9641.03 9790.4 9399 9867.59 10003.8 9326 9790.62 9944.8 9253 9714.26 9893.1 9511 9985.28 10155.2 9630 10110.1 10296.4 9779 10266.8 10455 9724 10209.3 10400.6 9845 10335.9 10514 9913 10407.2 10593.9 10148 10653.9 10855.5 10238 10748.7 10963 10253 10764.8 10998.1 10345 10860.6 11097.1 10227 10736.8 10977.2 10329 10844.2 11095.8 10399 10917.9 11170.1 10555 11081.7 11335.5 10721 11255.7 11522.5 10684 11216.3 11483.3 10807 11346.4 11620 10684 11217 11522.4 10570 11097 11412.9 10760 11296.8 11610.3 10883 11425.5 11749.7 10673 11205 11519.4 10910 11453.8 11744 10970 11516.8 11815.6 11096 11649.2 11940.9 11257 11818.1 12094.9 11384 11951.7 12240 11655 12236.1 12508.1 11446 12017.1 12300.5 11382 11949.8 12248.8 12/31/02 11623 12205 12507.3 Mutual fund performance changes over time. Please visit libertyfunds.com for daily performance updates. Past performance is no guarantee of future investment results. The principal value and investment returns will fluctuate, resulting in a gain or loss on sale. The above illustration assumes a $10,000 investment made on February 24,1999 and reinvestment of income and capital gains distributions. The Lehman Brothers Municipal Bond Index is an unmanaged index that tracks the performance of the municipal bond market. Unlike the fund, indexes are not investments and do not incur fees and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index. Index performance is from February 28, 1999. - -------------------------------------------------------------------------------- For the 12 months ended December 31, 2002, class A shares of Columbia National Municipal Bond Fund returned 10.00%, without a sales charge. This return exceeded both the Lipper General Municipal Debt Funds Category Average, which returned 8.63%, and the Lehman Brothers Municipal Bond Index, which returned 9.60%. By focusing on bonds in the intermediate (five- to 15-year) maturity range and selectively holding higher-yielding bonds with investment grade equivalent characteristics, the fund outperformed both its index and peer group.(1) Mixed period for municipal bonds The period was generally favorable for municipal bonds as yields fell during the year and bond prices moved higher. New issuance of municipal securities rose to record levels in 2002, as state and local entities took advantage of low interest rates to refund old issues, and issue new debt. Demand was also strong as investors allocated money away from volatile stocks and into the perceived safety of bonds and cash. Despite the favorable interest rate environment, municipal finances deteriorated through the year as slow economic growth, rising unemployment and falling stock prices combined to dampen state and local tax receipts. With many states under increasing financial pressure, third-party rating agencies put numerous states on watch for a downgrade, pending legislative solutions to growing budget deficits. Emphasis on intermediate maturities and yield The intermediate focus of the fund helped performance during the year as bonds maturing in the five- to 15-year range did better than both longer- and shorter-term issues. In addition, the fund's successful long-term strategy of building yield in the portfolio benefited performance. We continued to execute trades that improved yield and call protection AVERAGE ANNUAL TOTAL RETURN (%) As of December 31, 2002
Class A Class B Class D Class Z - ------------------------------------------------------------------------------------------------------------------------------------ Public offering date 11/1/02 11/1/02 11/1/02 2/24/99 - ------------------------------------------------------------------------------------------------------------------------------------ without with without with without with without sales charge sales charge sales charge sales charge sales charge sales charge sales charge - ------------------------------------------------------------------------------------------------------------------------------------ 1-year 10.00 4.75 9.88 4.88 9.92 7.81 10.04 - ------------------------------------------------------------------------------------------------------------------------------------ Life 5.31 3.99 5.28 4.60 5.29 5.02 5.32 - ------------------------------------------------------------------------------------------------------------------------------------
Past performance is no guarantee of future investment results. The principal value and investment returns will fluctuate, resulting in a gain or loss on sale. All results shown assume reinvestment of distributions, if any. The "with sales charge" returns include the maximum 4.75% charge for class A shares, the appropriate class B contingent deferred sales charge (CDSC) for the holding period after purchase as follows: through first year-5%, second year-4%, third year-3%, fourth year-3%, fifth year-2%, sixth year-1%, thereafter-0%, and the class D sales charge of 1% which also carries a CDSC of 1% that is applied to shares sold within the first year after they are purchased. Performance for different share classes will vary based on differences in sales charges and fees associated with each class. Performance results reflect any voluntary waivers or reimbursement of fund expenses by the advisor or its affiliates. Absent these waivers or reimbursement arrangements, performance results would have been lower. Classes A, B, and D (newer class shares) share performance information includes returns of the fund's class Z shares (the oldest existing fund class) for periods prior to the inception of the newer class shares. These class Z share returns are not restated to reflect any expense differential (e.g., Rule 12b-1 fees) between class Z shares and the newer class shares. Had the expense differential been reflected, the returns for the periods prior to the inception of classes A, B and D would have been lower. 26 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- (a feature that limits the issuer's ability to redeem a bond before maturity). At the same time, we maintained core holdings in selected non-rated securities with investment grade equivalent characteristics. Throughout 2002, we maintained a weighted average credit quality of AA. We were able to identify highly creditworthy smaller issuers whose borrowings were backed by essential services revenues. These included water and sewer and school district authorities that were too small to justify major rating agency review. Demand may slow, yields still attractive Looking ahead, uncertainty regarding the economic recovery, the President's dividend tax proposal and the generally low level of interest rates may crimp demand for municipal bonds in 2003. Compared to alternative fixed income instruments, however, we expect yields on municipal bonds, particularly intermediate- and longer-term issues to remain attractive on a tax-adjusted basis for investors in the highest tax brackets. Given the recent drop in short-term interest rates, we believe the best returns will come from intermediate issues. We plan to maintain an average maturity in the 7- to 10-year range on the fund. We also plan to continue to focus on high-quality issues diversified nationally across both states and sectors. Our emphasis will be on issues that offer shareholders attractive expected total return on a risk-adjusted basis. Greta R. Clapp Portfolio Manager The fund offers the potential for current tax-free income and capital preservation but is subject to interest rate risk, credit risk, political risk and geographic risk. Interest income from certain tax-exempt bonds may be subject to the federal alternative minimum tax for individuals and corporations. - -------------------------------------------------------------------------------- TOP TEN STATES % of net assets December 31, 2002 Oregon 14.4 Washington 11.4 Texas 11.4 Illinois 8.8 Tennessee 5.6 Wisconsin 5.1 Michigan 4.6 Indiana 3.8 New York 3.3 Louisiana 3.3 Because the fund is actively managed, there can be no guarantee the fund will continue to maintain this composition in these states the future. ----------------------------- PORTFOLIO QUALITY % of portfolio holdings December 31, 2002 [THE FOLLOWING TABLE WAS DEPICTED AS A PIE CHART IN THE PRINTED MATERIAL.] AAA 58.7 AA 14.3 A 9.3 BBB 1.7 Not Rated 16.0 Ratings shown represent the highest rating assigned to a particular bond by one of the nationally-recognized ratings agencies: Standard and Poor's Corporation, Moody's Investors Service, Inc. or Fitch Investors Service, Inc. - ---------- (1) Lipper Inc., a widely respected data provider in the industry, calculates an average total return for mutual funds with similar investment objectives as the fund. Portfolio quality is disclosed as of December 31, 2002, and is subject to change. 27 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- COLUMBIA OREGON MUNICIPAL BOND FUND - -------------------------------------------------------------------------------- PERFORMANCE OF A $10,000 INVESTMENT 12/31/92 - 12/31/02 without sales charge with sales charge -------------------- ----------------- Class A $ 17,519 $ 16,683 Class B 17,503 17,503 Class D 17,510 17,339 Class Z 17,539 n/a Line Chart: ----------------------------- GROWTH OF $10,000 OVER 10 YEARS Lehman Brothers Class A shares Class A shares General Obligation With sales charge without sales charge Bond Index 12/31/92 9525 10000 10000 9695.5 10179 10128 9979.58 10477.2 10470.3 9898.74 10392.4 10353.1 9974.96 10472.4 10445.2 10003.9 10502.8 10500.6 10151 10657.2 10663.3 10179.4 10687 10681.5 10337.1 10852.6 10892.9 10454 10975.3 11008.4 10458.1 10979.7 11022.7 10387 10905 10947.8 10547 11073 11174.4 10641.9 11172.6 11304 10390.8 10908.9 11001.1 10018.8 10518.4 10596.2 10071.9 10574.1 10710.7 10143.4 10649.2 10793.1 10094.7 10598.1 10728.4 10243.1 10753.9 10896.8 10281 10793.7 10943.7 10145.3 10651.2 10790.5 10019.5 10519.1 10635.1 9857.16 10348.7 10468.1 10053.3 10554.7 10653.4 10294.6 10808 10905.9 10523.1 11047.9 11193.8 10633.6 11163.9 11346 10645.3 11176.2 11352.8 10907.2 11451.1 11692.3 10819.9 11359.5 11612.8 10913 11457.2 11747.5 11051.6 11602.7 11896.7 11125.6 11680.5 11972.8 11255.8 11817.1 12109.3 11412.3 11981.4 12280 11478.5 12050.9 12377 11545 12120.8 12497.1 11487.3 12060.2 12439.6 11366.7 11933.5 12301.5 11320.1 11884.6 12258.5 11312.2 11876.3 12238.9 11425.3 11995 12362.5 11521.2 12095.8 12478.7 11522.4 12097 12477.4 11656.1 12237.3 12629.7 11772.6 12359.7 12776.2 11956.3 12552.5 13013.8 11908.5 12502.3 12961.8 11939.4 12534.8 12996.8 12034.9 12635.1 13115 11907.4 12501.2 12945.8 11986 12583.7 13046.8 12126.2 12730.9 13241.2 12235.3 12845.5 13384.2 12547.3 13173 13730.9 12467 13088.7 13610 12597.9 13226.2 13765.2 12659.6 13291 13840.9 12719.1 13353.4 13907.3 12903.6 13547.1 14104.8 13027.5 13677.1 14250.1 13011.8 13660.7 14261.5 13001.4 13649.8 14274.3 12957.2 13603.4 14198.7 13145.1 13800.6 14433 13174 13831 14484.9 13204.3 13862.8 14518.2 13403.7 14072.1 14747.6 13569.9 14246.6 14943.8 13546.8 14222.4 14946.8 13587.5 14265 14996.1 13622.8 14302.1 15045.6 13794.4 14482.4 15242.7 13688.2 14370.8 15164.9 13696.4 14379.5 15171 13736.1 14421.2 15212 13611.1 14289.9 15126.8 13417.9 14087 14904.4 13470.2 14142 14962.5 13354.4 14020.3 14874.2 13361 14027.3 14887.6 13223.4 13882.9 14759.6 13355.7 14021.7 14910.1 13260.8 13922.1 14816.2 13178.6 13835.8 14761.4 13289.3 13952 14909 13565.7 14242.2 15210.2 13492.5 14165.3 15132.6 13408.8 14077.5 15052.4 13733.3 14418.2 15440.8 13920.1 14614.3 15644.6 14131.7 14836.4 15868.3 14056.8 14757.8 15788.9 14210 14918.6 15954.7 14302.4 15015.6 16066.4 14622.7 15352 16445.6 14789.4 15527 16623.2 14830.8 15570.4 16673.1 14951 15696.6 16819.8 14789.5 15527 16646.5 14947.8 15693.2 16814.7 15041.9 15792 16918.9 15249.5 16010 17159.2 15495 16267.7 17435.4 15453.2 16223.8 17397.1 15649.4 16429.8 17576.3 15469.5 16240.9 17421.6 15286.9 16049.3 17282.2 15536.1 16310.9 17565.7 15717.9 16501.7 17780 15435 16204.7 17440.3 15737.5 16522.3 17799.6 15836.6 16626.4 17897.5 16023.5 16822.6 18098 16238.2 17048 18320.6 16429.8 17249.2 18529.4 16789.6 17626.9 18905.6 16482.4 17304.3 18599.3 16357.1 17172.8 18508.2 12/31/02 16683 17519 18870.9 Mutual fund performance changes over time. Please visit libertyfunds.com for daily performance updates. Past performance is no guarantee of future investment results. The principal value and investment returns will fluctuate, resulting in a gain or loss on sale. The above illustration assumes a $10,000 investment made on December 31,1992 and reinvestment of income and capital gains distributions. The Lehman Brothers General Obligation Bond Index is a unmanaged index that represents average market-weighted performance of general obligation securities that have been issued in the last five years with maturities greater than one year. Unlike the fund, indexes are not investments, do not incur fees and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index. - -------------------------------------------------------------------------------- Class A shares of Columbia Oregon Municipal Bond Fund returned 9.12%, without a sales charge, for the 12-month period ended December 31, 2002. This return fell just short of the Lehman Brothers General Obligation Bond Index, which returned 9.19%. However, the fund outperformed the Lipper Oregon Municipal Debt Funds Category Average, which returned 8.21%. We believe the fund's focus on bonds in the intermediate maturity (five- to 15-year) range and selective high-yielding non-rated issuers helped it outperform its peer group. Mixed period for municipals The period was generally favorable for municipal bonds as yields fell during the year and bond prices moved higher. New issuance of municipal securities rose to record levels in 2002, as state and local entities took advantage of low interest rates to refund old issues, and issue new debt. Issuance in Oregon was up 30% from the previous year. Demand was also strong as investors allocated money away from volatile stocks and into the perceived safety of bonds and cash. Despite the favorable interest rate environment, municipal finances nationally and in Oregon deteriorated through the year, as slow economic growth, rising unemployment and falling stock prices combined to dampen state and local tax receipts. With many states under increasing financial pressure, third-party rating agencies put numerous states, including Oregon, on watch for a downgrade, pending legislative solutions to growing budget deficits. Emphasis on intermediate maturities and yield The intermediate focus of the fund helped performance during the year as bonds maturing in the five- to 15-year range did better than both longer- and shorter-term issues. In addition, the fund's successful long-term strategy of building yield in the portfolio benefited performance. We continued to execute trades that improved yield and provided a call protection (a feature that limits the issuer's ability to redeem a bond before maturity). At the same AVERAGE ANNUAL TOTAL RETURN (%) As of December 31, 2002
Class A Class B Class D Class Z - ------------------------------------------------------------------------------------------------------------------------------------ Public offering date 11/1/02 11/1/02 11/1/02 7/2/84 - ------------------------------------------------------------------------------------------------------------------------------------ without with without with without with without sales charge sales charge sales charge sales charge sales charge sales charge sales charge - ------------------------------------------------------------------------------------------------------------------------------------ 1-year 9.12 3.95 9.02 4.02 9.06 7.00 9.24 - ------------------------------------------------------------------------------------------------------------------------------------ 5-year 5.27 4.26 5.25 4.93 5.26 5.05 5.30 - ------------------------------------------------------------------------------------------------------------------------------------ 10-year 5.77 5.25 5.76 5.76 5.76 5.66 5.78 - ------------------------------------------------------------------------------------------------------------------------------------
Past performance is no guarantee of future investment results. The principal value and investment returns will fluctuate, resulting in a gain or loss on sale. All results shown assume reinvestment of distributions, if any. The "with sales charge" returns include the maximum 4.75% charge for class A shares, the appropriate class B contingent deferred sales charge (CDSC) for the holding period after purchase as follows: through first year-5%, second year-4%, third year-3%, fourth year-3%, fifth year-2%, sixth year-1%, thereafter-0%, and the class D sales charge of 1% which also carries a CDSC of 1% that is applied to shares sold within the first year after they are purchased. Performance for different share classes will vary based on differences in sales charges and fees associated with each class. Performance results reflect any voluntary waivers or reimbursement of fund expenses by the advisor or its affiliates. Absent these waivers or reimbursement arrangements, performance results would have been lower. Classes A, B, and D (newer class shares) share performance information includes returns of the fund's class Z shares (the oldest existing fund class) for periods prior to the inception of the newer class shares. These class Z share returns are not restated to reflect any expense differential (e.g., Rule 12b-1 fees) between class Z shares and the newer class shares. Had the expense differential been reflected, the returns for the periods prior to the inception of classes A, B and D would have been lower. 28 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- time, we maintained core holdings in selected non-rated securities with investment grade equivalent characteristics. Throughout 2002, we maintained a weighted average credit quality of AA. We were able to identify highly creditworthy smaller issuers whose borrowings were backed by essential services revenues. These included water and sewer and school district authorities that were too small to justify major rating agency review. Oregon confronts difficult revenue environment Like most states, Oregon is facing new budgetary challenges. Approximately 70% of the state's tax base is supported by income taxes, which makes it relatively undiversified by national standards. In addition, the tax collections forecast for fiscal 2003 is not positive. We expect issuance to stabilize in 2003, or continue to be strong, as Oregon follows other states in creating marketable securities from its share of tobacco settlement receipts and as it continues to refinance debt at lower interest rates. Depending on the measures taken by state legislators to deal with the budget shortfall, however, the rating agencies could downgrade state debt from AA to A. We do not believe this would have a major impact on the price of Oregon's bonds, nor would it have an impact on the exemption of income earned on the bonds for both federal and state income tax purposes. Looking ahead, we plan to continue to focus on high-quality, intermediate-term securities, diversified across both counties and sectors within Oregon. Compared to alternative fixed-income investments, we believe yields on Oregon municipal bonds remain attractive on a tax-adjusted basis for investors in the highest tax brackets. Greta R. Clapp Portfolio Manager The fund offers the potential for current tax-free income and capital preservation but is subject to interest rate risk, credit risk and political risk. Single-state municipal bond funds pose additional risks due to limited geographic diversification. Interest income from certain tax-exempt bonds may be subject to the federal alternative minimum tax for individuals and corporations. - -------------------------------------------------------------------------------- PORTFOLIO COMPOSITION % of Net Assets December 31, 2002 Revenue 36.7 Insured revenue 19.0 General obligations 16.5 Insured general obligations 15.8 State general obligations 6.5 Other bonds 3.0 Cash, net receivables & payables 1.8 US territories 0.6 Pre-refunded bonds 0.1 Because the fund is actively managed, there can be no guarantee the fund will continue to maintain this composition in the future. ----------------------------- PORTFOLIO QUALITY % of portfolio holdings December 31, 2002 [THE FOLLOWING TABLE WAS DEPICTED AS A PIE CHART IN THE PRINTED MATERIAL.] AAA 37.3 AA 40.3 A 8.6 BBB 3.1 Not Rated 10.7 Ratings shown represent the highest rating assigned to a particular bond by one of the nationally-recognized ratings agencies: Standard and Poor's Corporation, Moody's Investors Service, Inc. or Fitch Investors Service, Inc. - ---------- (1) Lipper Inc., a widely respected data provider in the industry, calculates an average total return for mutual funds with similar investment objectives as the fund. Portfolio composition and portfolio quality are disclosed as of December 31, 2002, and are subject to change. 29 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- COLUMBIA HIGH YIELD FUND - -------------------------------------------------------------------------------- PERFORMANCE OF A $10,000 INVESTMENT 10/1/93 - 12/31/02 without sales charge with sales charge -------------------- ----------------- Class A $ 18,057 $ 17,197 Class B 18,028 18,028 Class D 18,031 17,853 Class Z 18,068 n/a Line Chart: ----------------------------- GROWTH OF $10,000 SINCE INCEPTION Merrill Lynch Class A shares Class A shares US High Yield, With sales charge without sales charge Cash Pay Only Index 10/1/93 9525 10000 10000 9517.38 9992 10188 9539.27 10015 10244 9631.8 10112.1 10346.5 9763.76 10250.7 10573.1 9735.44 10220.9 10496.9 9438.51 9909.2 10154.7 9275.22 9737.77 10035.9 9352.21 9818.59 9999.8 9377.46 9845.1 10036.8 9434.66 9905.16 10108.1 9494.1 9967.56 10176.8 9541.57 10017.4 10172.7 9552.07 10028.4 10198.1 9446.04 9917.1 10111.5 9543.33 10019.2 10223.7 9692.21 10175.5 10367.9 9930.64 10425.9 10691.3 10021 10520.7 10840 10245.5 10756.4 11093.6 10504.7 11028.5 11439.7 10577.2 11104.6 11526.7 10723.1 11257.9 11656.9 10742.4 11278.1 11728 10916.5 11460.9 11861.7 11060.6 11612.1 11947.1 11186.6 11744.5 12064.2 11366.8 11933.6 12258.4 11524.8 12099.5 12452.1 11562.8 12139.4 12470.8 11432.1 12002.2 12437.1 11416.1 11985.4 12443.4 11426.4 11996.2 12532.9 11458.4 12029.8 12608.1 11543.2 12118.8 12693.9 11762.5 12349.1 12824.6 11966 12562.7 13101.6 12097.6 12700.9 13245.8 12351.7 12967.6 13513.3 12439.4 13059.7 13617.4 12548.8 13174.6 13722.2 12739.6 13374.9 13914.3 12547.2 13172.9 13759.9 12695.3 13328.4 13916.8 13000 13648.2 14197.9 13163.8 13820.2 14413.7 13517.9 14192 14759.6 13505.7 14179.2 14734.5 13686.7 14369.2 14979.1 13674.4 14356.3 15078 13830.2 14519.9 15221.2 14018.3 14717.4 15365.8 14246.8 14957.3 15594.8 14330.9 15045.5 15658.7 14419.7 15138.8 15793.4 14491.8 15214.5 15867.6 14536.8 15261.7 15978.7 14640 15370 16058.6 14818.6 15557.6 16150.1 14230.3 14939.9 15452.4 14482.1 15204.4 15483.3 14412.6 15131.4 15229.4 14888.3 15630.7 15922.3 14892.7 15635.4 15927.1 15075.9 15827.7 16084.8 14993 15740.7 15962.5 15171.4 15928 16099.8 15279.1 16041.1 16351 15082 15834.1 16238.1 15035.3 15785 16207.3 15020.2 15769.3 16231.6 14936.1 15681 16072.5 14919.7 15663.7 16005 14922.7 15666.9 15910.6 15165.9 15922.2 16092 15246.3 16006.6 16175.7 15168.5 15925 16094.8 15182.2 15939.3 16109.3 15095.6 15848.5 15883.7 15165.1 15921.4 15888.5 15156 15911.8 15713.7 15474.3 16245.9 15982.4 15613.5 16392.2 16097.5 15877.4 16669.2 16293.9 15877.4 16669.2 16199.4 15744 16529.2 15724.8 15518.9 16292.8 15232.6 15948.8 16744.1 15563.1 16495.8 17318.4 16490.7 16634.4 17463.9 16751.2 16547.9 17373.1 16530.1 16508.2 17331.4 16349.9 16615.5 17444 16663.8 16469.2 17290.5 16320.6 16668.5 17499.8 16573.5 16885.2 17727.3 16734.3 16225 17034.1 15661.6 16781.5 17618.4 16122.1 17221.2 18080 16646.1 17007.7 17855.8 16527.9 17109.7 17962.9 16620.4 16954 17799.5 16460.9 17113.4 17966.8 16852.6 17193.8 18051.2 17120.6 17159.4 18015.1 17028.1 16723.6 17557.5 15817.4 16446 17266.1 15187.9 16700.9 17533.7 15567.6 16635.7 17465.3 15318.5 16614.1 17442.6 15189.9 17082.6 17934.5 16099.7 12/31/02 17197 18057 16341.2 Mutual fund performance changes over time. Please visit libertyfunds.com for daily performance updates. Past performance is no guarantee of future investment results. The principal value and investment returns will fluctuate, resulting in a gain or loss on sale. The above illustration assumes a $10,000 investment made on October 1, 1993, and reinvestment of income and capital gains distributions. The Merrill Lynch U.S. High Yield, Cash Pay Only Index is an unmanaged index of non-investment-grade corporate bonds. Unlike the fund, indexes are not investments, do not incur fees or expenses, and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index. Index performance is from September 30, 1993. - -------------------------------------------------------------------------------- Outperformance in a difficult year For the 12-month period ended December 31, 2002, Columbia High Yield Fund class A shares returned 1.11%, without a sales charge. By comparison, the Merrill Lynch US High Yield, Cash Pay Only Index returned negative 1.13%. The fund benefited from avoiding lower quality and more volatile issues, which were among the weakest performers of the year. A false start followed by a strong finish The high-yield market got off to a good start in 2002, continuing a rally that started late in the fourth quarter of 2001. The economy seemed to be improving and the difference, or spread, between high-yield bond yields and Treasury yields remained at historical highs. Wide spreads are often indicative of attractive valuations for high-yield bonds. By May, however, the economy seemed to be weakening. Investors became concerned about overall debt levels, the stock market declined as a string of corporate scandals made headlines and the high-yield market followed. Many well-known issues were downgraded to junk bond status, including WorldCom, Qwest and Tyco. WorldCom, K-Mart and Adelphia actually defaulted on their bond payments. (None of these were held by the fund at the time of default.) By early October the high-yield market had reached a low point, but it experienced a turnaround in November. Three factors contributed to this recovery. First, the Federal Reserve unexpectedly cut the federal funds rate. Second, the money supply was increased to stimulate the economy. Third, Household Finance was purchased by HSBC (neither bond was held by the fund). The last point was significant because a number of widely-recognized high-grade companies like Household Finance were trading at unprecedented spreads to Treasuries. There was a real concern of refinancing risk in the markets even for many investment-grade issuers. When the financially strong HSBC announced its intention to buy AVERAGE ANNUAL TOTAL RETURN (%) As of December 31, 2002
Class A Class B Class D Class Z - ------------------------------------------------------------------------------------------------------------------------------------ Public offering date 11/1/02 11/1/02 11/1/02 10/1/93 - ------------------------------------------------------------------------------------------------------------------------------------ without with without with without with without sales charge sales charge sales charge sales charge sales charge sales charge sales charge - ------------------------------------------------------------------------------------------------------------------------------------ 1-year 1.11 -3.67 0.95 -3.77 0.97 -0.98 1.17 - ------------------------------------------------------------------------------------------------------------------------------------ 5-year 4.17 3.17 4.14 3.86 4.14 3.94 4.19 - ------------------------------------------------------------------------------------------------------------------------------------ Life 6.60 6.04 6.58 6.58 6.58 6.47 6.60 - ------------------------------------------------------------------------------------------------------------------------------------
Past performance is no guarantee of future investment results. The principal value and investment returns will fluctuate, resulting in a gain or loss on sale. All results shown assume reinvestment of distributions, if any. The "with sales charge" returns include the maximum 4.75% charge for class A shares, the appropriate class B contingent deferred sales charge (CDSC) for the holding period after purchase as follows: through first year-5%, second year-4%, third year-3%, fourth year-3%, fifth year-2%, sixth year-1%, thereafter-0%, and the class D sales charge of 1% which also carries a CDSC of 1% that is applied to shares sold within the first year after they are purchased. Performance for different share classes will vary based on differences in sales charges and fees associated with each class. Performance results reflect any voluntary waivers or reimbursement of fund expenses by the advisor or its affiliates. Absent these waivers or reimbursement arrangements, performance results would have been lower. Classes A, B, and D (newer class shares) share performance information includes returns of the fund's class Z shares (the oldest existing fund class) for periods prior to the inception of the newer class shares. These class Z share returns are not restated to reflect any expense differential (e.g., Rule 12b-1 fees) between class Z shares and the newer class shares. Had the expenses differential been reflected, the returns for the periods prior to the inception of classes A, B and D would have been lower. 30 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- Household Finance, it had a calming effect on the high-yield market. Combined with some economic numbers in the last few months of 2002 that indicated the economy might be stabilizing, the fourth quarter turned out to be one of the best periods for high-yield bonds in years. A bottom-up approach emphasized higher quality In managing the fund, we stayed with a bottom-up strategy that focused on higher quality issues. To some degree this approach helped the fund avoid some of the biggest losses of the year. However, with this approach, the fund missed out on some of the biggest gainers in the fourth quarter, especially in the telecommunications and technology sectors, in which the fund had no holdings until late in the year. We continued to concentrate on finding good companies rather than on trying to move in and out of industry sectors. We added two publishing companies, Dex Media and R.H. Donnelly (1.8% and 2.1% of net assets, respectively), both of which purchased directory businesses.(1) Our energy weighting increased as a result of adding two equipment and pipeline companies, Grant Prideco, a manufacturer of oil field drill pipes, and Westport Resources, an exploration and production company (1.4% and 2.0% of net assets, respectively). Our sole investment in telecom came with the addition of Nextel Communications (1.2% of net assets) toward the end of the year. While there is industry concern about the wireless market, we think this company continues to show improvement in operations and managing their subscriber base. Portfolio changes The two worst performers for the fund this period were Charter Communications in the cable area and Calpine in the electric utility area. (Both holdings were eliminated from the portfolio during the year.) With Charter, investors were concerned about changes in operations and management. Investors' concerns about Calpine centered on the company's debt leverage, and weak wholesale power markets. In addition to selling these names, we lowered our weighting stakes in health care and homebuilding sectors. A recovery could bode well for high-yield With short-term interest rates at 40-year lows, fiscal policy in a stimulus mode, and strong cash flows into high-yield funds, the market has been trading with a very bullish tone. Looking forward into 2003, the key will be whether or not authorities can jump-start the economy through traditional fiscal and monetary policy. To enable corporate profits to grow, the consumer will need to remain strong while the manufacturing sector picks up. If this scenario plays out, the high-yield market should continue to rally. The risk lies in whether or not the consumer is able to keep from stumbling while the market awaits a rebound in the manufacturing sector. If the consumer weakens first, a double-dip recession becomes more likely and returns in high yield, which may end up being attractive versus equities, could be disappointing relative to higher quality bonds. Jeffrey L. Rippey and Kurt M. Havnaer Portfolio Managers High-yield investing offers the potential for high income and attractive total returns, but also involves certain risks, including credit risks associated with lower-rated bonds, and interest rate risks. - -------------------------------------------------------------------------------- TOP FIVE SECTORS % of net assets December 31, 2002 Health care 8.5 Energy 8.0 Gaming 7.3 Packaging 6.5 Automotive & auto parts 6.3 Because the fund is actively managed, there can be no guarantee the fund will continue to maintain these sectors in the future. ----------------------------- PORTFOLIO QUALITY % of portfolio holdings(1) December 31, 2002 [THE FOLLOWING TABLE WAS DEPICTED AS A PIE CHART IN THE PRINTED MATERIAL.] BBB 2.4 BB 46.7 Cash & Equivalents 12.7 B 36.5 AA 0.7 A 1.0 Ratings shown represent the highest rating assigned to a particular bond by one of the nationally-recognized ratings agencies: Standard and Poor's Corporation, Moody's Investors Service, Inc. or Fitch Investors Service, Inc. - ---------- (1) Portfolio quality and holdings are disclosed as of December 31, 2002, and are subject to change. 31 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- COLUMBIA DAILY INCOME COMPANY - -------------------------------------------------------------------------------- PERFORMANCE OF A $10,000 INVESTMENT 12/31/92 - 12/31/02 without sales charge ------------ Class Z $ 15,138 Line Chart: GROWTH OF $10,000 OVER 10 YEARS Class Z shares Consumer Price Index 12/31/92 10000 10000 10023 10049 10043 10084.2 10064.1 10119.5 10084.3 10147.8 10104.4 10162 10124.6 10176.2 10145.9 10176.2 10167.2 10204.7 10187.5 10226.2 10208.9 10268.1 10229.4 10275.3 10250.8 10275.3 10273.4 10303 10292.9 10338 10316.6 10373.2 10341.3 10387.7 10370.3 10395 10401.4 10430.3 10434.7 10458.5 10470.2 10500.3 10505.8 10528.7 10544.6 10536 10584.7 10549.7 10630.2 10549.7 10678.1 10591.9 10722.9 10634.3 10773.3 10669.4 10822.9 10704.6 10873.7 10726 10922.7 10747.5 10972.9 10747.5 11022.3 10775.4 11069.7 10797 11118.4 10832.6 11166.2 10825 11215.3 10817.4 11263.6 10881.3 11307.5 10916.1 11352.7 10972.8 11397 11015.6 11442.6 11036.6 11487.2 11043.2 11534.3 11064.2 11581.6 11085.2 11627.9 11120.7 11675.6 11156.3 11722.3 11177.5 11770.4 11177.5 11818.6 11213.2 11862.3 11248 11911 11276.1 11958.6 11290.8 12008.8 11284 12059.3 11297.5 12111.1 11311.1 12163.2 11332.6 12213.1 11360.9 12265.6 11389.3 12317.1 11382.5 12371.3 11368.8 12425.7 11390.4 12474.2 11412.1 12526.6 11433.7 12578 11454.3 12630.8 11474.9 12682.6 11488.7 12737.1 11502.5 12791.9 11516.3 12845.6 11530.1 12899.6 11557.8 12949.9 11557.8 13001.7 11550.9 13052.4 11578.6 13096.7 11592.5 13145.2 11627.2 13192.5 11712.1 13241.3 11712.1 13289 11712.1 13339.5 11747.3 13391.5 11775.5 13443.8 11832 13498.9 11853.3 13554.2 11860.4 13615.2 11860.4 13677.8 11896 13735.3 11966.2 13798.5 12064.3 13860.6 12071.5 13928.5 12086 13996.7 12148.9 14069.5 12176.8 14142.7 12176.8 14213.4 12240.1 14287.3 12260.9 14358.7 12268.3 14432 12260.9 14504.1 12338.2 14563.6 12387.5 14624.8 12416 14678.9 12465.7 14728.8 12526.8 14774.4 12543 14817.3 12507.9 14857.3 12507.9 14893 12564.2 14922.7 12521.5 14946.6 12500.2 14967.5 12451.4 14985.5 12480.1 15000.5 12530 15017 12600.2 15032 12670.7 15047 12670.7 15062.1 12678.3 15077.1 12692.3 15092.2 12734.2 15105.8 12755.8 15119.4 12777.5 15131.5 12777.5 12/31/02 15138 12749.4 Mutual fund performance changes over time. Please visit libertyfunds.com for daily performance updates. Past performance is no guarantee of future investment results. The principal value and investment returns will fluctuate, resulting in a gain or loss on sale. The above illustration assumes a $10,000 investment made on December 31, 1992, and reinvestment of income and capital gains distributions. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency. Although the fund seeks to preserve the value of your investment at $1 per share, it is possible to lose money by investing in the fund. - -------------------------------------------------------------------------------- Results for the year For the 12-month period ended December 31, 2002, the fund returned 1.17%. Overall, money market rates, which hit a 30-year low in 2001, declined to a new low during 2002. The federal funds rate, the target overnight interest rate at which commercial banks lend money to each other, started the year at just 1.75%. By early November, the Federal Reserve had lowered the rate to 1.25%. Despite the Fed's aggressive efforts to stimulate economic growth, inflation remained tame. During 2002, the US Consumer Price Index, a standard gauge for inflation, rose approximately 2.4%. This was up slightly from 2001, but still relatively low by historical standards. Economy weak despite early consumer spending strength Economic growth vacillated during 2002--even with the help of consumers, who account for approximately two-thirds of the US economy. Consumer spending remained strong throughout the year, thanks to increased cash flow from a high level of mortgage refinancings and rising personal income. However, business spending, which has been sluggish for three straight years, continued to disappoint investors. Gross domestic product (GDP) is an important indicator of US economic health that measures the strength or weakness in consumer purchasing behavior, government spending, private investments, corporate production, and international trade balance. GDP rose at a robust annual rate of 5.0% in the first quarter. Continued weak performance in the stock and bond markets, however, pressured consumer confidence as the year wore on. GDP growth fell to 1.3% in the second quarter, then rebounded to 4.0% in the third quarter. However, estimates place fourth quarter GDP growth at half or less of third quarter growth. AVERAGE ANNUAL TOTAL RETURN (%) As of December 31, 2002 Columbia Consumer Price Daily Income Index Class Z (inflation) - -------------------------------------------------------------------------------- 1-year 1.17 2.38 - -------------------------------------------------------------------------------- 5-year 4.12 2.32 - -------------------------------------------------------------------------------- 10-year 4.23 2.46 - -------------------------------------------------------------------------------- 32 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- Emphasis on government and Treasury paper The fund continues to invest in high quality, short-term debt instruments. We lowered our position in corporate paper, given the weakness in the 2002 corporate markets, and increased our holdings in US government and Treasury paper. At the end of 2002, the fund had a substantial weighting in government agency and Treasury securities, as well as high quality commercial paper. The fund's average maturity was 30 days going into 2003. Its overall positioning reflects a patient and conservative stance. Lenoard A. Aplet Portfolio Manager There is a chance that the fund's investments may not keep pace with the rate of inflation over the long-term. Also, an investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency. Although the fund seeks to preserve the value of your investment at $1 per share, it is possible to lose money by investing in the fund. - -------------------------------------------------------------------------------- PORTFOLIO HIGHLIGHTS 12/31/02 Current yield 1.04% Compound yield 1.05% Based on the 7-day period ending on the date shown Weighted average maturity 28 days 33 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA COMMON STOCK FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT THE PERIOD For the Period Ended December 31, -------- Class A Shares 2002(a) -------- - -------------------------------------------------------------------------------- Net asset value, beginning of period $ 15.09 - -------------------------------------------------------------------------------- Income from investment operations: Net investment loss .................................... --(b)(c) Net realized and unrealized loss on investments ........ (0.11) - -------------------------------------------------------------------------------- Total from investment operations ..................... (0.11) - -------------------------------------------------------------------------------- Less distributions: From net investment income ............................. (0.07) - -------------------------------------------------------------------------------- Net asset value, end of period $ 14.91 - -------------------------------------------------------------------------------- Total return ............................................. (0.71)%(d)(e) Ratios/Supplemental data: Net assets, end of period (in thousands) ................. $ 32 Ratio of expenses to average net assets .................. 1.32%(f)(g) Ratio of net investment loss to average net assets ....... (0.03)%(f)(g) Portfolio turnover rate .................................. 107% (a) Class A shares were initially offered on November 1, 2002. Per share data reflects activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Rounds to less than $0.01 per share. (d) Total return at net asset value assuming all distributions reinvested and no initial sales charge or contingent deferred sales charge. (e) Not annualized. (f) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (g) Annualized. COLUMBIA COMMON STOCK FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT THE PERIOD For the Period Ended December 31, -------- Class B Shares 2002(a) -------- - -------------------------------------------------------------------------------- Net asset value, beginning of period $ 15.09 - -------------------------------------------------------------------------------- Income from investment operations: Net investment loss .................................... (0.01)(b) Net realized and unrealized loss on investments ........ (0.12) - -------------------------------------------------------------------------------- Total from investment operations ..................... (0.13) - -------------------------------------------------------------------------------- Less distributions: From net investment income ............................. (0.05) - -------------------------------------------------------------------------------- Net asset value, end of period $ 14.91 - -------------------------------------------------------------------------------- Total return ............................................. (0.84)%(c)(d) Ratios/Supplemental data: Net assets, end of period (in thousands) ................. $ 109 Ratio of expenses to average net assets .................. 2.07%(e)(f) Ratio of net investment loss to average net assets ....... (0.78)%(e)(f) Portfolio turnover rate .................................. 107% (a) Class B shares were initially offered on November 1, 2002. Per share data reflects activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge. (d) Not annualized. (e) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (f) Annualized. See Accompanying Notes to Financial Statements 34 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA COMMON STOCK FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT THE PERIOD For the Period Ended December 31, -------- Class D Shares 2002(a) -------- - -------------------------------------------------------------------------------- Net asset value, beginning of period $ 15.09 - -------------------------------------------------------------------------------- Income from investment operations: Net investment loss .................................... (0.01)(b) Net realized and unrealized loss on investments ........ (0.11) - -------------------------------------------------------------------------------- Total from investment operations ..................... (0.12) - -------------------------------------------------------------------------------- Less distributions: From net investment income ............................. (0.05) - -------------------------------------------------------------------------------- Net asset value, end of period $ 14.92 - -------------------------------------------------------------------------------- Total return ............................................. (0.77%)(c)(d) Ratios/Supplemental data: Net assets, end of period (in thousands) ................. $ 30 Ratio of expenses to average net assets .................. 2.07%(e)(f) Ratio of net investment loss to average net assets ....... (0.78)%(e)(f) Portfolio turnover rate .................................. 107% (a) Class D shares were initially offered on November 1, 2002. Per share data reflects activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming all distributions reinvested and no initial sales charge or contingent deferred sales charge. (d) Not annualized. (e) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (f) Annualized. COLUMBIA COMMON STOCK FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
Year Ended December 31, -------- -------- -------- -------- -------- Class Z Shares 2002(a) 2001 2000 1999 1998 -------- -------- -------- -------- -------- - ----------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 19.97 $ 24.34 $ 28.90 $ 24.40 $ 22.02 - ----------------------------------------------------------------------------------------------------------------------------------- Income from investment operations: Net investment income (loss) ................................ 0.07(b) 0.07 (0.01) 0.03 0.09 Net realized and unrealized gain (loss) on investments ...... (5.05) (4.35) (1.54) 6.25 5.68 - ----------------------------------------------------------------------------------------------------------------------------------- Total from investment operations .......................... (4.98) (4.28) (1.55) 6.28 5.77 - ----------------------------------------------------------------------------------------------------------------------------------- Less distributions: From net investment income .................................. (0.08) (0.07) -- (0.03) (0.13) From net realized gains ..................................... -- (0.02) (3.01) (1.75) (3.26) - ----------------------------------------------------------------------------------------------------------------------------------- Total distributions ....................................... (0.08) (0.09) (3.01) (1.78) (3.39) - ----------------------------------------------------------------------------------------------------------------------------------- Net asset value, end of period $ 14.91 $ 19.97 $ 24.34 $ 28.90 $ 24.40 - ----------------------------------------------------------------------------------------------------------------------------------- Total return (c) .............................................. (24.92)% (17.60)% (5.73)% 25.76% 26.28% Ratios/Supplemental data: Net assets, end of period (in thousands) ...................... $ 416,638 $ 681,397 $ 895,134 $ 959,910 $ 797,147 Ratio of expenses to average net assets (d) ................... 0.86% 0.80% 0.75% 0.77% 0.80% Ratio of net investment income (loss) to average net assets (d) 0.43% 0.32% (0.05)% 0.09% 0.56% Portfolio turnover rate ....................................... 107% 114% 104% 97% 141%
(a) On November 1, 2002, the existing Fund shares were redesignated Class Z shares. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming all distributions reinvested. (d) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. See Accompanying Notes to Financial Statements 35 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA GROWTH FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT THE PERIOD For the Period Ended December 31, -------- Class A Shares 2002(a) -------- - -------------------------------------------------------------------------------- Net asset value, beginning of period $ 21.52 - -------------------------------------------------------------------------------- Income from investment operations: Net investment loss .................................... --(b)(c) Net realized and unrealized loss on investments ........ (0.69) - -------------------------------------------------------------------------------- Total from investment operations ..................... (0.69) - -------------------------------------------------------------------------------- Net asset value, end of period $ 20.83 - -------------------------------------------------------------------------------- Total return ............................................. (3.21)%(d)(e) Ratios/Supplemental data: Net assets, end of period (in thousands) ................. $ 3,077 Ratio of expenses to average net assets .................. 1.15%(f)(g) Ratio of net investment loss to average net assets ....... (0.36)%(f)(g) Portfolio turnover rate .................................. 165% (a) Class A shares were initially offered on November 1, 2002. Per share data reflects activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Rounds to less than $0.01 per share. (d) Total return at net asset value assuming no initial sales charge or contingent deferred sales charge. (e) Not annualized. (f) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (g) Annualized. COLUMBIA GROWTH FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT THE PERIOD For the Period Ended December 31, ------- Class B Shares 2002(a) ------- - -------------------------------------------------------------------------------- Net asset value, beginning of period $ 21.52 - -------------------------------------------------------------------------------- Income from investment operations: Net investment loss .................................... (0.03)(b) Net realized and unrealized loss on investments ........ (0.67) - -------------------------------------------------------------------------------- Total from investment operations ..................... (0.70) - -------------------------------------------------------------------------------- Net asset value, end of period $ 20.82 - -------------------------------------------------------------------------------- Total return ............................................. (3.25)%(c)(d) Ratios/Supplemental data: Net assets, end of period (in thousands) ................. $ 114 Ratio of expenses to average net assets .................. 1.88%(e)(f) Ratio of net investment loss to average net assets ....... (1.09)%(e)(f) Portfolio turnover rate .................................. 165% (a) Class B shares were initially offered on November 1, 2002. Per share data reflects activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming no contingent deferred sales charge. (d) Not annualized. (e) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (f) Annualized. See Accompanying Notes to Financial Statements 36 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA GROWTH FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT THE PERIOD For the Period Ended December 31, -------- Class D Shares 2002(a) -------- - -------------------------------------------------------------------------------- Net asset value, beginning of period $ 21.52 - -------------------------------------------------------------------------------- Income from investment operations: Net investment loss .................................... (0.02)(b) Net realized and unrealized loss on investments ........ (0.68) - -------------------------------------------------------------------------------- Total from investment operations ..................... (0.70) - -------------------------------------------------------------------------------- Net asset value, end of period $ 20.82 - -------------------------------------------------------------------------------- Total return ............................................. (3.25)%(c)(d) Ratios/Supplemental data: Net assets, end of period (in thousands) ................. $ 103 Ratio of expenses to average net assets .................. 1.88%(e)(f) Ratio of net investment loss to average net assets ....... (1.09)%(e)(f) Portfolio turnover rate .................................. 165% (a) Class D shares were initially offered on November 1, 2002. Per share data reflects activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming no initial sales charge or contingent deferred sales charge. (d) Not annualized. (e) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (f) Annualized. COLUMBIA GROWTH FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT THE PERIOD For the Period Ended December 31, -------- Class G Shares 2002(a) -------- - -------------------------------------------------------------------------------- Net asset value, beginning of period $ 21.52 - -------------------------------------------------------------------------------- Income from investment operations: Net investment loss .................................... (0.03)(b) Net realized and unrealized loss on investments ........ (0.66) - -------------------------------------------------------------------------------- Total from investment operations ..................... (0.69) - -------------------------------------------------------------------------------- Net asset value, end of period $ 20.83 - -------------------------------------------------------------------------------- Total return ............................................. (3.21)%(c)(d) Ratios/Supplemental data: Net assets, end of period (in thousands) ................. $ 13,705 Ratio of expenses to average net assets .................. 1.83%(e)(f) Ratio of net investment loss to average net assets ....... (1.04)%(e)(f) Portfolio turnover rate .................................. 165% (a) Class G shares were initially offered on November 1, 2002. Per share data reflects activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming no contingent deferred sales charge. (d) Not annualized. (e) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (f) Annualized. See Accompanying Notes to Financial Statements 37 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA GROWTH FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
Year Ended December 31, -------- ---------- ---------- ---------- ---------- Class Z Shares 2002(a) 2001 2000 1999 1998 -------- ---------- ---------- ---------- ---------- - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, beginning of period $ 31.35 $ 40.07 $ 48.91 $ 42.51 $ 34.34 - ------------------------------------------------------------------------------------------------------------------------------------ Income from investment operations: Net investment income (loss) ................................ (0.01)(b) (0.02) (0.08) (0.03) 0.03 Net realized and unrealized gain (loss) on investments ...... (10.49) (8.55) (3.49) 11.09 10.39 - ------------------------------------------------------------------------------------------------------------------------------------ Total from investment operations .......................... (10.50) (8.57) (3.57) 11.06 10.42 - ------------------------------------------------------------------------------------------------------------------------------------ Less distributions: From net investment income .................................. -- -- -- -- (c) (0.08) From net realized gains ..................................... -- (0.15) (5.27) (4.66) (2.17) - ------------------------------------------------------------------------------------------------------------------------------------ Total distributions ....................................... -- (0.15) (5.27) (4.66) (2.25) - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, end of period $ 20.85 $ 31.35 $ 40.07 $ 48.91 $ 42.51 - ------------------------------------------------------------------------------------------------------------------------------------ Total return (d) .............................................. (33.49)% (21.40)% (7.94)% 26.02% 30.34% Ratios/Supplemental data: Net assets, end of period (in thousands) ...................... $811,648 $1,325,844 $1,919,227 $2,160,739 $1,753,024 Ratio of expenses to average net assets (e) ................... 0.82% 0.72% 0.65% 0.65% 0.68% Ratio of net investment income (loss) to average net assets (e) (0.03)% (0.07)% (0.18)% (0.07)% 0.21% Portfolio turnover rate ....................................... 165% 122% 114% 118% 105%
(a) On November 1, 2002, the existing Fund shares were redesignated Class Z shares. (b) Per share data was calculated using average shares outstanding during the period. (c) Rounds to less than$ 0.01 per share. (d) Total return at net asset value assuming all distributions reinvested. (e) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. COLUMBIA INTERNATIONAL STOCK FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT THE PERIOD
For the Period Ended December 31, --------- Class A Shares 2002(a) --------- - ----------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 10.04 - ----------------------------------------------------------------------------------------------- Income from investment operations: Net investment loss .................................................. (0.02)(b) Net realized and unrealized gain on investments and foreign currency . 0.03 - ----------------------------------------------------------------------------------------------- Total from investment operations ................................... 0.01 - ----------------------------------------------------------------------------------------------- Net asset value, end of period $ 10.05 - ----------------------------------------------------------------------------------------------- Total return ........................................................... 0.10%(c)(d) Ratios/Supplemental data: Net assets, end of period (in thousands) ............................... $ 20,178 Ratio of expenses to average net assets ................................ 1.86%(e)(f) Ratio of net investment loss to average net assets ..................... (0.39)%(e)(f) Portfolio turnover rate ................................................ 96%
(a) Class A shares were initially offered on November 1, 2002. Per share data reflects activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming no initial sales charge or contingent deferred sales charge. (d) Not annualized. (e) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (f) Annualized. See Accompanying Notes to Financial Statements 38 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA INTERNATIONAL STOCK FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT THE PERIOD
For the Period Ended December 31, ------- Class B Shares 2002(a) ------- - ------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 10.04 - ------------------------------------------------------------------------------------------------------- Income from investment operations: Net investment loss ................................................. (0.05)(b) Net realized and unrealized gain on investments and foreign currency 0.03 - ------------------------------------------------------------------------------------------------------- Total from investment operations .................................. (0.02) - ------------------------------------------------------------------------------------------------------- Net asset value, end of period $ 10.02 - ------------------------------------------------------------------------------------------------------- Total return .......................................................... (0.20)%(c)(d)(e) Ratios/Supplemental data: Net assets, end of period (in thousands) .............................. $10,920 Ratio of expenses to average net assets ............................... 3.64%(f)(g) Ratio of net investment loss to average net assets .................... (2.17)%(f)(g) Waiver/reimbursement .................................................. 0.11%(g) Portfolio turnover rate ............................................... 96%
(a) Class B shares were initially offered on November 1, 2002. Per share data reflects activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming no contingent deferred sales charge. (d) Not annualized. (e) Had the Advisor not waived or reimbursed a portion of expenses, total return would have been reduced. (f) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (g) Annualized. COLUMBIA INTERNATIONAL STOCK FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT THE PERIOD
For the Period Ended December 31, ------- Class D Shares 2002(a) ------- - -------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 10.04 - -------------------------------------------------------------------------------------------------------- Income from investment operations: Net investment loss ................................................. (0.04)(b) Net realized and unrealized gain on investments and foreign currency 0.02 - -------------------------------------------------------------------------------------------------------- Total from investment operations .................................. (0.02) - -------------------------------------------------------------------------------------------------------- Net asset value, end of period $ 10.02 - -------------------------------------------------------------------------------------------------------- Total return .......................................................... (0.20)%(c)(d)(e) Ratios/Supplemental data: Net assets, end of period (in thousands) .............................. $ 542 Ratio of expenses to average net assets ............................... 3.48%(f)(g) Ratio of net investment loss to average net assets .................... (2.01)%(f)(g) Waiver/reimbursement .................................................. 0.75%(g) Portfolio turnover rate ............................................... 96%
(a) Class D shares were initially offered on November 1, 2002. Per share data reflects activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming no initial sales charge or contingent deferred sales charge. (d) Not annualized. (e) Had the Advisor not waived or reimbursed a portion of expenses, total return would have been reduced. (f) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (g) Annualized. See Accompanying Notes to Financial Statements 39 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA INTERNATIONAL STOCK FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
Year Ended December 31, -------- -------- -------- -------- -------- Class Z Shares 2002(a) 2001 2000 1999 1998 -------- -------- -------- -------- -------- - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, beginning of period $ 12.03 $ 14.77 $ 22.81 $ 15.45 $ 13.70 - ------------------------------------------------------------------------------------------------------------------------------------ Income from investment operations: Net investment income (loss) ................................ --(b)(c) 0.01 (0.04) (0.05) --(c) Net realized and unrealized gain (loss) on investments and foreign currency ...................................... (1.94) (2.74) (5.17) 9.00 1.76 - ------------------------------------------------------------------------------------------------------------------------------------ Total from investment operations .......................... (1.94) (2.73) (5.21) 8.95 1.76 - ------------------------------------------------------------------------------------------------------------------------------------ Less distributions: From net investment income .................................. (0.01) (0.01) -- -- -- From net realized gains ..................................... -- -- (2.83) (1.59) (0.01) Return of capital ........................................... (0.03) -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total distributions ....................................... (0.04) (0.01) (2.83) (1.59) (0.01) - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, end of period $ 10.05 $ 12.03 $ 14.77 $ 22.81 $ 15.45 - ------------------------------------------------------------------------------------------------------------------------------------ Total return (d) .............................................. (16.10)%(e) (18.47)% (22.64)% 57.93% 12.83% Ratios/Supplemental data: Net assets, end of period (in thousands) ...................... $143,332 $135,626 $175,316 $239,223 $134,193 Ratio of expenses to average net assets (f) ................... 1.49% 1.56% 1.42% 1.48% 1.56% Ratio of net investment income (loss) to average net assets (f) (0.02)% 0.06% (0.19)% (0.35)% (0.02)% Waiver/reimbursement .......................................... 0.12% --% --% --% --% Portfolio turnover rate ....................................... 96% 130% 112% 94% 74%
(a) On November 1, 2002, the existing Fund shares were redesignated Class Z shares. (b) Per share data was calculated using average shares outstanding during the period. (c) Rounds to less than$ 0.01 per share. (d) Total return at net asset value assuming all distributions reinvested. (e) Had the Advisor not waived or reimbursed a portion of expenses, total return would have been reduced. (f) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. COLUMBIA SPECIAL FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT THE PERIOD For the Period Ended December 31, -------- Class A Shares 2002(a) -------- - -------------------------------------------------------------------------------- Net asset value, beginning of period $15.15 - -------------------------------------------------------------------------------- Income from investment operations: Net investment loss ............................... (0.02)(b) Net realized and unrealized loss on investments ... (0.36) - -------------------------------------------------------------------------------- Total from investment operations ................ (0.38) - -------------------------------------------------------------------------------- Net asset value, end of period $14.77 - -------------------------------------------------------------------------------- Total return ........................................ (2.51)%(c)(d)(e) Ratios/Supplemental data: Net assets, end of period (in thousands) ............ $1,180 Ratio of expenses to average net assets ............. 1.49%(f)(g) Ratio of net investment loss to average net assets .. (1.22)%(f)(g) Waiver/reimbursement ................................ 0.01%(g) Portfolio turnover rate ............................. 88% (a) Class A shares were initially offered on November 1, 2002. Per share data reflects activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming no initial sales charge or contingent deferred sales charge. (d) Not annualized. (e) Had the Advisor not waived a portion of expenses, total return would have been reduced. (f) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (g) Annualized. See Accompanying Notes to Financial Statements 40 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA SPECIAL FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT THE PERIOD For the Period Ended December 31, -------- Class B Shares 2002(a) -------- - -------------------------------------------------------------------------------- Net asset value, beginning of period $15.15 - -------------------------------------------------------------------------------- Income from investment operations: Net investment loss ............................... (0.04)(b) Net realized and unrealized loss on investments ... (0.35) - -------------------------------------------------------------------------------- Total from investment operations ................ (0.39) - -------------------------------------------------------------------------------- Net asset value, end of period $14.76 - -------------------------------------------------------------------------------- Total return ........................................ (2.57)%(c)(d)(e) Ratios/Supplemental data: Net assets, end of period (in thousands) ............ $3,383 Ratio of expenses to average net assets ............. 2.32%(f)(g) Ratio of net investment loss to average net assets .. (2.05)%(f)(g) Waiver/reimbursement ................................ 0.12%(g) Portfolio turnover rate ............................. 88% (a) Class B shares were initially offered on November 1, 2002. Per share data reflects activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming no contingent deferred sales charge. (d) Not annualized. (e) Had the Advisor not waived a portion of expenses, total return would have been reduced. (f) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (g) Annualized. COLUMBIA SPECIAL FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT THE PERIOD For the Period Ended December 31, ------- Class D Shares 2002(a) ------- - -------------------------------------------------------------------------------- Net asset value, beginning of period $15.15 - -------------------------------------------------------------------------------- Income from investment operations: Net investment loss ............................... (0.04)(b) Net realized and unrealized loss on investments ... (0.35) - -------------------------------------------------------------------------------- Total from investment operations ................ (0.39) - -------------------------------------------------------------------------------- Net asset value, end of period $14.76 - -------------------------------------------------------------------------------- Total return ........................................ (2.57)%(c)(d)(e) Ratios/Supplemental data: Net assets, end of period (in thousands) ............ $ 433 Ratio of expenses to average net assets ............. 2.32%(f)(g) Ratio of net investment loss to average net assets .. (2.05)%(f)(g) Waiver/reimbursement ................................ 0.09%(g) Portfolio turnover rate ............................. 88% (a) Class D shares were initially offered on November 1, 2002. Per share data reflects activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming no initial sales charge or contingent deferred sales charge. (d) Not annualized. (e) Had the Advisor not waived a portion of expenses, total return would have been reduced. (f) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (g) Annualized. See Accompanying Notes to Financial Statements 41 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA SPECIAL FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT THE PERIOD For the Period Ended December 31, -------- Class G Shares 2002(a) -------- - -------------------------------------------------------------------------------- Net asset value, beginning of period $15.15 - -------------------------------------------------------------------------------- Income from investment operations: Net investment loss ............................... (0.04)(b) Net realized and unrealized loss on investments ... (0.34) - -------------------------------------------------------------------------------- Total from investment operations ................ (0.38) - -------------------------------------------------------------------------------- Net asset value, end of period $14.77 - -------------------------------------------------------------------------------- Total return ........................................ (2.51)%(c)(d) Ratios/Supplemental data: Net assets, end of period (in thousands) ............ $ 753 Ratio of expenses to average net assets ............. 2.35%(e)(f) Ratio of net investment loss to average net assets .. (2.08)%(e)(f) Portfolio turnover rate ............................. 88% (a) Class G shares were initially offered on November 1, 2002. Per share data reflects activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming no contingent deferred sales charge. (d) Not annualized. (e) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (f) Annualized. COLUMBIA SPECIAL FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT THE PERIOD For the Period Ended December 31, ------- Class T Shares 2002(a) ------- - -------------------------------------------------------------------------------- Net asset value, beginning of period $ 15.15 - -------------------------------------------------------------------------------- Income from investment operations: Net investment loss ............................... (0.02)(b) Net realized and unrealized loss on investments ... (0.34) - -------------------------------------------------------------------------------- Total from investment operations ................ (0.36) - -------------------------------------------------------------------------------- Net asset value, end of period $ 14.79 - -------------------------------------------------------------------------------- Total return ........................................ (2.38)%(c)(d) Ratios/Supplemental data: Net assets, end of period (in thousands) ............ $25,966 Ratio of expenses to average net assets ............. 1.45%(e)(f) Ratio of net investment loss to average net assets .. (1.18)%(e)(f) Portfolio turnover rate ............................. 88% (a) Class T shares were initially offered on November 1, 2002. Per share data reflects activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming no initial sales charge or contingent deferred sales charge. (d) Not annualized. (e) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (f) Annualized. See Accompanying Notes to Financial Statements 42 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA SPECIAL FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
Year Ended December 31, -------- -------- ---------- -------- -------- Class Z Shares 2002(a) 2001 2000 1999 1998 -------- -------- ---------- -------- -------- - ----------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 19.60 $ 25.99 $ 29.93 $ 23.62 $ 20.26 - ----------------------------------------------------------------------------------------------------------------------------------- Income from investment operations: Net investment loss .................................. (0.13)(b) (0.11) (0.10) (0.16) (0.03) Net realized and unrealized gain (loss) on investments (4.68) (5.35) 4.45 8.74 3.40 - ----------------------------------------------------------------------------------------------------------------------------------- Total from investment operations ................... (4.81) (5.46) 4.35 8.58 3.37 - ----------------------------------------------------------------------------------------------------------------------------------- Less distributions: From net investment income ........................... -- -- -- -- (0.01) From net realized gains .............................. -- (0.93) (8.29) (2.27) --(c) - ----------------------------------------------------------------------------------------------------------------------------------- Total distributions ................................ -- (0.93) (8.29) (2.27) (0.01) - ----------------------------------------------------------------------------------------------------------------------------------- Net asset value, end of period $ 14.79 $ 19.60 $ 25.99 $ 29.93 $ 23.62 - ----------------------------------------------------------------------------------------------------------------------------------- Total return (d) ....................................... (24.54)%(e) (20.98)% 13.84% 36.33% 16.64% Ratios/Supplemental data: Net assets, end of period (in thousands) ............... $807,342 $786,071 $1,095,525 $918,322 $969,359 Ratio of expenses to average net assets (f) ............ 1.12% 1.08% 0.99% 1.09% 1.03% Ratio of net investment loss to average net assets (f) . (0.85)% (0.49)% (0.38)% (0.64)% (0.09)% Waiver/reimbursement ................................... 0.05% --% --% --% --% Portfolio turnover rate ................................ 88% 186% 169% 135% 135%
(a) On November 1, 2002, the existing Fund shares were redesignated Class Z shares. (b) Per share data was calculated using average shares outstanding during the period. (c) Rounds to less than $0.01 per share. (d) Total return at net asset value assuming all distributions reinvested. (e) Had the Advisor not waived a portion of expenses, total return would have been reduced. (f) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. COLUMBIA SMALL CAP FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
Year Ended December 31, -------- -------- -------- -------- -------- Class Z Shares 2002(a) 2001 2000 1999 1998 -------- -------- -------- -------- -------- - ----------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 22.20 $ 25.87 $ 27.26 $ 17.43 $ 16.65 - ----------------------------------------------------------------------------------------------------------------------------------- Income from investment operations: Net investment loss .................................. (0.17)(b) (0.13) (0.10) (0.14) (0.09) Net realized and unrealized gain (loss) on investments (5.73) (3.54) 1.75 10.45 0.87 - ----------------------------------------------------------------------------------------------------------------------------------- Total from investment operations ................... (5.90) (3.67) 1.65 10.31 0.78 - ----------------------------------------------------------------------------------------------------------------------------------- Less distributions: From net realized gains .............................. -- -- (3.04) (0.48) --(c) - ----------------------------------------------------------------------------------------------------------------------------------- Net asset value, end of period $ 16.30 $ 22.20 $ 25.87 $ 27.26 $ 17.43 - ----------------------------------------------------------------------------------------------------------------------------------- Total return (d) ....................................... (26.58)% (14.19)% 5.85% 59.15% 4.69% Ratios/Supplemental data: Net assets, end of period (in thousands) ............... $493,031 $617,966 $518,970 $290,374 $160,472 Ratio of expenses to average net assets (e) ............ 1.24% 1.23% 1.22% 1.30% 1.34% Ratio of net investment loss to average net assets (e) . (0.90)% (0.71)% (0.44)% (0.84)% (0.68)% Portfolio turnover rate ................................ 109% 129% 145% 188% 158%
(a) On November 1, 2002, the existing Fund shares were redesignated Class Z shares. (b) Per share data was calculated using average shares outstanding during the period. (c) Rounds to less than $0.01 per share. (d) Total return at net asset value assuming all distributions reinvested. (e) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. See Accompanying Notes to Financial Statements 43 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA REAL ESTATE EQUITY FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT THE PERIOD For the Period Ended December 31, ------- Class A Shares 2002(a) ------- - -------------------------------------------------------------------------------- Net asset value, beginning of period $17.01 - -------------------------------------------------------------------------------- Income from investment operations: Net investment income ................................ 0.26(b) Net realized and unrealized gain on investments ...... 0.78 - -------------------------------------------------------------------------------- Total from investment operations ................... 1.04 - -------------------------------------------------------------------------------- Less distributions: From net investment income ........................... (0.25) - -------------------------------------------------------------------------------- Net asset value, end of period $17.80 - -------------------------------------------------------------------------------- Total return ........................................... 6.10%(c)(d) Ratios/Supplemental data: Net assets, end of period (in thousands) ............... $ 905 Ratio of expenses to average net assets ................ 1.43%(e)(f) Ratio of net investment income to average net assets ... 4.81%(e)(f) Portfolio turnover rate ................................ 53% (a) Class A shares were initially offered on November 1, 2002. Per share data reflects activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming all distributions reinvested and no initial sales charge or contingent deferred sales charge. (d) Not annualized. (e) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (f) Annualized. COLUMBIA REAL ESTATE EQUITY FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT THE PERIOD For the Period Ended December 31, ------- Class B Shares 2002(a) ------- - -------------------------------------------------------------------------------- Net asset value, beginning of period $17.01 - -------------------------------------------------------------------------------- Income from investment operations: Net investment income ................................ 0.22(b) Net realized and unrealized gain on investments ...... 0.81 - -------------------------------------------------------------------------------- Total from investment operations ................... 1.03 - -------------------------------------------------------------------------------- Less distributions: From net investment income ........................... (0.22) - -------------------------------------------------------------------------------- Net asset value, end of period $17.82 - -------------------------------------------------------------------------------- Total return ........................................... 6.09%(c)(d) Ratios/Supplemental data: Net assets, end of period (in thousands) ............... $1,074 Ratio of expenses to average net assets ................ 2.18%(e)(f) Ratio of net investment income to average net assets ... 4.06%(e)(f) Portfolio turnover rate ................................ 53% (a) Class B shares were initially offered on November 1, 2002. Per share data reflects activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge. (d) Not annualized. (e) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (f) Annualized. See Accompanying Notes to Financial Statements 44 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA REAL ESTATE EQUITY FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT THE PERIOD For the Period Ended December 31, ------- Class D Shares 2002(a) ------- - -------------------------------------------------------------------------------- Net asset value, beginning of period $17.01 - -------------------------------------------------------------------------------- Income from investment operations: Net investment income ................................ 0.21(b) Net realized and unrealized gain on investments ...... 0.82 - -------------------------------------------------------------------------------- Total from investment operations ................... 1.03 - -------------------------------------------------------------------------------- Less distributions: From net investment income ........................... (0.22) - -------------------------------------------------------------------------------- Net asset value, end of period $17.82 - -------------------------------------------------------------------------------- Total return ........................................... 6.09%(c)(d) Ratios/Supplemental data: Net assets, end of period (in thousands) ............... $ 365 Ratio of expenses to average net assets ................ 2.18%(e)(f) Ratio of net investment income to average net assets ... 4.06%(e)(f) Portfolio turnover rate ................................ 53% (a) Class D shares were initially offered on November 1, 2002. Per share data reflects activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming all distributions reinvested and no initial sales charge or contingent deferred sales charge. (d) Not annualized. (e) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (f) Annualized. COLUMBIA REAL ESTATE EQUITY FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
Year Ended December 31, -------- -------- -------- -------- -------- Class Z Shares 2002(a) 2001 2000 1999 1998 -------- -------- -------- -------- -------- - ----------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 18.04 $ 17.89 $ 14.57 $ 15.76 $ 18.80 - ----------------------------------------------------------------------------------------------------------------------------------- Income from investment operations: Net investment income ................................ 0.82(b) 0.79 0.81 0.82 0.75 Net realized and unrealized gain (loss) on investments (0.25) 0.15 3.32 (1.19) (3.04) - ----------------------------------------------------------------------------------------------------------------------------------- Total from investment operations ................... 0.57 0.94 4.13 (0.37) (2.29) - ----------------------------------------------------------------------------------------------------------------------------------- Less distributions: From net investment income ........................... (0.71) (0.72) (0.75) (0.71) (0.66) Return of capital .................................... (0.09) (0.07) (0.06) (0.11) (0.09) - ----------------------------------------------------------------------------------------------------------------------------------- Total distributions ................................ (0.80) (0.79) (0.81) (0.82) (0.75) - ----------------------------------------------------------------------------------------------------------------------------------- Net asset value, end of period $ 17.81 $ 18.04 $ 17.89 $ 14.57 $ 15.76 - ----------------------------------------------------------------------------------------------------------------------------------- Total return (c) ....................................... 3.12% 5.41% 28.84% (2.45)% (12.33)% Ratios/Supplemental data: Net assets, end of period (in thousands) ............... $774,646 $621,590 $436,764 $241,716 $164,172 Ratio of expenses to average net assets (d) ............ 0.94% 0.95% 0.96% 0.99% 1.01% Ratio of net investment income to average net assets (d) 5.30% 4.65% 5.16% 5.66% 4.60% Portfolio turnover rate ................................ 53% 41% 25% 29% 6%
(a) On November 1, 2002, the existing Fund shares were redesignated Class Z shares. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming all distributions reinvested. (d) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. See Accompanying Notes to Financial Statements 45 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA TECHNOLOGY FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT THE PERIOD For the Period Ended December 31, ------- Class A Shares 2002(a) ------- - -------------------------------------------------------------------------------- Net asset value, beginning of period $ 3.82 - -------------------------------------------------------------------------------- Income from investment operations: Net investment loss .................................. (0.01)(b) Net realized and unrealized loss on investments ...... (0.02) - -------------------------------------------------------------------------------- Total from investment operations ................... (0.03) - -------------------------------------------------------------------------------- Net asset value, end of period $ 3.79 - -------------------------------------------------------------------------------- Total return ........................................... (0.79)%(c)(d)(e) Ratios/Supplemental data: Net assets, end of period (in thousands) ............... $ 1 Ratio of expenses to average net assets ................ 1.76%(f)(g) Ratio of net investment loss to average net assets ..... (1.35)%(f)(g) Waiver/reimbursement ................................... 1.24%(g) Portfolio turnover rate ................................ 512% (a) Class A shares were initially offered on November 1, 2002. Per share data reflects activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming no initial sales charge or contingent deferred sales charge. (d) Had the Advisor not waived or reimbursed a portion of expenses, total return would have been reduced. (e) Not annualized. (f) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (g) Annualized. COLUMBIA TECHNOLOGY FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT THE PERIOD For the Period Ended December 31, ------- Class B Shares 2002(a) ------- - -------------------------------------------------------------------------------- Net asset value, beginning of period $ 3.82 - -------------------------------------------------------------------------------- Income from investment operations: Net investment loss .................................. (0.01)(b) Net realized and unrealized loss on investments ...... (0.03) - -------------------------------------------------------------------------------- Total from investment operations ................... (0.04) - -------------------------------------------------------------------------------- Net asset value, end of period $ 3.78 - -------------------------------------------------------------------------------- Total return ........................................... (1.05)%(c)(d)(e) Ratios/Supplemental data: Net assets, end of period (in thousands) ............... $ 7 Ratio of expenses to average net assets ................ 2.51%(f)(g) Ratio of net investment loss to average net assets ..... (2.10)%(f)(g) Waiver/reimbursement ................................... 1.24%(g) Portfolio turnover rate ................................ 512% (a) Class B shares were initially offered on November 1, 2002. Per share data reflects activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming no contingent deferred sales charge. (d) Had the Advisor not waived or reimbursed a portion of expenses, total return would have been reduced. (e) Not annualized. (f) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (g) Annualized. See Accompanying Notes to Financial Statements 46 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA TECHNOLOGY FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT THE PERIOD For the Period Ended December 31, ------- Class D Shares 2002(a) ------- - -------------------------------------------------------------------------------- Net asset value, beginning of period $ 3.82 - -------------------------------------------------------------------------------- Income from investment operations: Net investment loss .................................. (0.01)(b) Net realized and unrealized loss on investments ...... (0.03) - -------------------------------------------------------------------------------- Total from investment operations ................... (0.04) - -------------------------------------------------------------------------------- Net asset value, end of period $ 3.78 - -------------------------------------------------------------------------------- Total return ........................................... (1.05)%(c)(d)(e) Ratios/Supplemental data: Net assets, end of period (in thousands) ............... $ 1 Ratio of expenses to average net assets ................ 2.51%(f)(g) Ratio of net investment loss to average net assets ..... (2.10)%(f)(g) Waiver/reimbursement ................................... 1.24%(g) Portfolio turnover rate ................................ 512% (a) Class D shares were initially offered on November 1, 2002. Per share data reflects activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming no initial sales charge or contingent deferred sales charge. (d) Had the Advisor not waived or reimbursed a portion of expenses, total return would have been reduced. (e) Not annualized. (f) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (g) Annualized. COLUMBIA TECHNOLOGY FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
For the Year Ended Period Ended December 31, December 31, ------- ------- ------- Class Z Shares 2002(a) 2001 2000(b) ------- ------- ------- - ------------------------------------------------------------------------------------------------------------------------------ Net asset value, beginning of period $ 6.13 $ 8.63 $ 10.00 - ------------------------------------------------------------------------------------------------------------------------------ Income from investment operations: Net investment income (loss) ............................................. (0.06)(c) (0.08) 0.01 Net realized and unrealized loss on investments .......................... (2.28) (2.42) (1.37) - ------------------------------------------------------------------------------------------------------------------------------ Total from investment operations ....................................... (2.34) (2.50) (1.36) - ------------------------------------------------------------------------------------------------------------------------------ Less distributions: From net investment income ............................................... -- -- (0.01) - ------------------------------------------------------------------------------------------------------------------------------ Net asset value, end of period $ 3.79 $ 6.13 $ 8.63 - ------------------------------------------------------------------------------------------------------------------------------ Total return (d) ........................................................... (38.17)% (28.97)% (13.78)%(e)(f) Ratios/Supplemental data: Net assets, end of period (in thousands) ................................... $ 8,055 $ 10,385 $ 4,327 Ratio of expenses to average net assets (g) ................................ 1.65% 1.69% 1.48%(h) Ratio of net investment income (loss) to average net assets (g) ............ (1.24)% (1.26)% 0.99%(h) Waiver/reimbursement ....................................................... 1.33% 1.13% 7.49%(h) Portfolio turnover rate .................................................... 512% 413% 63%(f)
(a) On November 1, 2002, the existing Fund shares were redesignated Class Z shares. (b) The Fund commenced investment operations on October 27, 2000. Per share data reflects activity from that date. (c) Per share data was calculated using average shares outstanding during the period. (d) Had the Advisor not waived or reimbursed a portion of expenses, total return would have been reduced. (e) Total return at net asset value assuming all distributions reinvested. (f) Not annualized. (g) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (h) Annualized. See Accompanying Notes to Financial Statements 47 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA STRATEGIC VALUE FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT THE PERIOD
For the Period Ended December 31, ------- Class A Shares 2002(a) ------- - ----------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 12.72 - ----------------------------------------------------------------------------------------------- Income from investment operations: Net investment income .................................................. 0.01(b) Net realized and unrealized gain on investments and foreign currency ... 0.40 - ----------------------------------------------------------------------------------------------- Total from investment operations ..................................... 0.41 - ----------------------------------------------------------------------------------------------- Net asset value, end of period $ 13.13 - ----------------------------------------------------------------------------------------------- Total return ............................................................. 3.22%(c)(d) Ratios/Supplemental data: Net assets, end of period (in thousands) ................................. $53,526 Ratio of expenses to average net assets .................................. 1.21%(e)(f) Ratio of net investment income to average net assets ..................... 0.64%(e)(f) Portfolio turnover rate .................................................. 188%
(a) Class A shares were initially offered on November 1, 2002. Per share data reflects activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming no initial sales charge or contingent deferred sales charge. (d) Not annualized. (e) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (f) Annualized. COLUMBIA STRATEGIC VALUE FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT THE PERIOD
For the Period Ended December 31, ------ Class B Shares 2002(a) ------ - ------------------------------------------------------------------------------------------------- Net asset value, beginning of period $12.72 - ------------------------------------------------------------------------------------------------- Income from investment operations: Net investment loss .................................................... (0.01)(b) Net realized and unrealized gain on investments and foreign currency ................................................. 0.39 - ------------------------------------------------------------------------------------------------- Total from investment operations ..................................... 0.38 - ------------------------------------------------------------------------------------------------- Net asset value, end of period $13.10 - ------------------------------------------------------------------------------------------------- Total return ............................................................. 2.99%(c)(d)(e) Ratios/Supplemental data: Net assets, end of period (in thousands) ................................. $2,350 Ratio of expenses to average net assets .................................. 2.36%(f)(g) Ratio of net investment loss to average net assets ....................... (0.51)%(f)(g) Waiver/reimbursement ..................................................... 0.23%(g) Portfolio turnover rate .................................................. 188%
(a) Class B shares were initially offered on November 1, 2002. Per share data reflects activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming no contingent deferred sales charge. (d) Had the Advisor not waived or reimbursed a portion of expenses, total return would have been reduced. (e) Not annualized. (f) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (g) Annualized. See Accompanying Notes to Financial Statements 48 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA STRATEGIC VALUE FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT THE PERIOD
For the Period Ended December 31, ------- Class D Shares 2002(a) ------- - -------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 12.72 - -------------------------------------------------------------------------------------------------- Income from investment operations: Net investment loss .................................................... (0.01)(b) Net realized and unrealized gain on investments and foreign currency ... 0.40 - -------------------------------------------------------------------------------------------------- Total from investment operations ..................................... 0.39 - -------------------------------------------------------------------------------------------------- Net asset value, end of period $ 13.11 - -------------------------------------------------------------------------------------------------- Total return ............................................................. 3.07%(c)(d)(e) Ratios/Supplemental data: Net assets, end of period (in thousands) ................................. $ 355 Ratio of expenses to average net assets .................................. 2.28%(f)(g) Ratio of net investment loss to average net assets ....................... (0.43)%(f)(g) Waiver/reimbursement ..................................................... 0.15%(g) Portfolio turnover rate .................................................. 188%
(a) Class D shares were initially offered on November 1, 2002. Per share data reflects activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming no initial sales charge or contingent deferred sales charge. (d) Had the Advisor not waived or reimbursed a portion of expenses, total return would have been reduced. (e) Not annualized. (f) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (g) Annualized. COLUMBIA STRATEGIC VALUE FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
For the Year Ended Period Ended December 31, December 31, -------- -------- ------ Class Z Shares 2002(a) 2001 2000(b) -------- -------- ------ - ------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 14.52 $ 11.23 $ 10.00 - ------------------------------------------------------------------------------------------------------------------------- Income from investment operations: Net investment income ....................................... 0.10(c) 0.05 0.02 Net realized and unrealized gain (loss) on investments and foreign currency ...................................... (1.35) 3.29 1.23 - ------------------------------------------------------------------------------------------------------------------------- Total from investment operations .......................... (1.25) 3.34 1.25 - ------------------------------------------------------------------------------------------------------------------------- Less distributions: From net investment income .................................. (0.11) (0.05) (0.02) From net realized gains ..................................... (0.02) -- -- - ------------------------------------------------------------------------------------------------------------------------- Total distributions ....................................... (0.13) (0.05) (0.02) - ------------------------------------------------------------------------------------------------------------------------- Net asset value, end of period $ 13.14 $ 14.52 $ 11.23 - ------------------------------------------------------------------------------------------------------------------------- Total return (d) .............................................. (8.56)%(e) 29.76% 12.25%(e)(f) Ratios/Supplemental data: Net assets, end of period (in thousands) ...................... $209,610 $139,504 $9,526 Ratio of expenses to average net assets (g) ................... 1.23% 1.13% 1.34%(h) Ratio of net investment income to average net assets (g) ...... 0.62% 0.71% 1.92%(h) Waiver/reimbursement .......................................... 0.03% --% 3.97%(h) Portfolio turnover rate ....................................... 188% 278% 64%(f)
(a) On November 1, 2002, the existing Fund shares were redesignated Class Z shares. (b) The Fund commenced investment operations on October 27, 2000. Per share data reflects activity from that date. (c) Per share data was calculated using average shares outstanding during the period. (d) Total return at net asset value assuming all distributions reinvested. (e) Had the Advisor not waived or reimbursed a portion of expenses, total return would have been reduced. (f) Not annualized. (g) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (h) Annualized. See Accompanying Notes to Financial Statements 49 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA BALANCED FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT THE PERIOD For the Period Ended December 31, ------- Class A Shares 2002(a) ------- - -------------------------------------------------------------------------------- Net asset value, beginning of period $17.58 - -------------------------------------------------------------------------------- Income from investment operations: Net investment income ................................. 0.03(b) Net realized and unrealized loss on investments ....... --(c) - -------------------------------------------------------------------------------- Total from investment operations .................... 0.03 - -------------------------------------------------------------------------------- Less distributions: From net investment income ............................ (0.09) - -------------------------------------------------------------------------------- Net asset value, end of period $17.52 - -------------------------------------------------------------------------------- Total return ............................................ 0.19%(d)(e) Ratios/Supplemental data: Net assets, end of period (in thousands) ................ $ 146 Ratio of expenses to average net assets ................. 1.17%(f)(g) Ratio of net investment income to average net assets..... 2.03%(f)(g) Portfolio turnover rate ................................. 98% (a) Class A shares were initially offered on November 1, 2002. Per share data reflects activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Rounds to less than $0.01 per share. (d) Total return at net asset value assuming all distributions reinvested and no initial sales charge or contingent deferred sales charge. (e) Not annualized. (f) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (g) Annualized. COLUMBIA BALANCED FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT THE PERIOD For the Period Ended December 31, ------- Class B Shares 2002(a) ------- - -------------------------------------------------------------------------------- Net asset value, beginning of period $ 17.58 - -------------------------------------------------------------------------------- Income from investment operations: Net investment income ................................. 0.02(b) Net realized and unrealized loss on investments ....... (0.01) - -------------------------------------------------------------------------------- Total from investment operations .................... 0.01 - -------------------------------------------------------------------------------- Less distributions: From net investment income ............................ (0.07) - -------------------------------------------------------------------------------- Net asset value, end of period $ 17.52 - -------------------------------------------------------------------------------- Total return ............................................ 0.06%(c)(d) Ratios/Supplemental data: Net assets, end of period (in thousands) ................ $ 608 Ratio of expenses to average net assets ................. 1.92%(e)(f) Ratio of net investment income to average net assets .... 1.28%(e)(f) Portfolio turnover rate ................................. 98% (a) Class B shares were initially offered on November 1, 2002. Per share data reflects activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge. (d) Not annualized. (e) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (f) Annualized. See Accompanying Notes to Financial Statements 50 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA BALANCED FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT THE PERIOD For the Period Ended December 31, ------- Class D Shares 2002(a) ------- - -------------------------------------------------------------------------------- Net asset value, beginning of period $ 17.58 - -------------------------------------------------------------------------------- Income from investment operations: Net investment income ................................. 0.02(b) Net realized and unrealized loss on investments ....... (0.02) - -------------------------------------------------------------------------------- Total from investment operations .................... -- - -------------------------------------------------------------------------------- Less distributions: From net investment income ............................ (0.07) - -------------------------------------------------------------------------------- Net asset value, end of period $ 17.51 - -------------------------------------------------------------------------------- Total return ............................................ 0.01%(c)(d) Ratios/Supplemental data: Net assets, end of period (in thousands) ................ $ 446 Ratio of expenses to average net assets ................. 1.92%(e)(f) Ratio of net investment income to average net assets .... 1.28%(e)(f) Portfolio turnover rate ................................. 98% (a) Class D shares were initially offered on November 1, 2002. Per share data reflects activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming all distributions reinvested and no initial sales charge or contingent deferred sales charge. (d) Not annualized. (e) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (f) Annualized. See Accompanying Notes to Financial Statements 51 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA BALANCED FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
Year Ended December 31, -------- -------- -------- -------- -------- Class Z Shares 2002(a) 2001 2000 1999 1998 -------- -------- -------- -------- -------- - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, beginning of period $ 20.67 $ 22.96 $ 24.72 $ 23.17 $ 21.42 - ------------------------------------------------------------------------------------------------------------------------------------ Income from investment operations: Net investment income ................................ 0.47(b) 0.57(c) 0.67 0.69 0.72 Net realized and unrealized gain (loss) on investments (3.13) (2.27)(c) (0.41) 2.21 3.52 - ------------------------------------------------------------------------------------------------------------------------------------ Total from investment operations ................... (2.66) (1.70) 0.26 2.90 4.24 - ------------------------------------------------------------------------------------------------------------------------------------ Less distributions: From net investment income ........................... (0.50) (0.59) (0.68) (0.69) (0.73) From net realized gains .............................. -- -- (1.34) (0.66) (1.76) - ------------------------------------------------------------------------------------------------------------------------------------ Total distributions ................................ (0.50) (0.59) (2.02) (1.35) (2.49) - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, end of period $ 17.51 $ 20.67 $ 22.96 $ 24.72 $ 23.17 - ------------------------------------------------------------------------------------------------------------------------------------ Total return (d) ....................................... (12.97)% (7.40)% 0.82% 12.70% 20.07% Ratios/Supplemental data: Net assets, end of period (in thousands) ............... $668,290 $983,749 $1,126,854 $1,040,940 $975,381 Ratio of expenses to average net assets (e) ............ 0.70% 0.67% 0.65% 0.66% 0.67% Ratio of net investment income to average net assets (e) 2.50% 2.70%(c) 2.73% 2.85% 3.22% Portfolio turnover rate ................................ 98% 111% 105% 133% 128%
(a) On November 1, 2002, the existing Fund shares were redesignated Class Z shares. (b) Per share data was calculated using average shares outstanding during the period. (c) Effective January 1, 2001, the Fund adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing and accreting premium and discount on all debt securities. The effect of this change for the year ended December 31, 2001, was to decrease net investment income per share by $0.01, increase net realized and unrealized loss per share by $0.01 and decrease the ratio of net investment income to average net assets from 2.73% to 2.70%. Per share data and ratios for periods prior to December 31, 2001 have not been restated to reflect this change in presentation. (d) Total return at net asset value assuming all distributions reinvested. (e) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. See Accompanying Notes to Financial Statements 52 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA SHORT TERM BOND FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT THE PERIOD For the Period Ended December 31, ------- Class A Shares 2002(a) ------- - -------------------------------------------------------------------------------- Net asset value, beginning of period $ 8.63 - -------------------------------------------------------------------------------- Income from investment operations: Net investment income ................................. 0.04(b) Net realized and unrealized gain on investments ....... 0.04 - -------------------------------------------------------------------------------- Total from investment operations .................... 0.08 - -------------------------------------------------------------------------------- Less distributions: From net investment income ............................ (0.04) - -------------------------------------------------------------------------------- Net asset value, end of period $ 8.67 - -------------------------------------------------------------------------------- Total return ............................................ 0.94%(c)(d)(e) Ratios/Supplemental data: Net assets, end of period (in thousands) ................ $5,543 Ratio of expenses to average net assets ................. 1.00%(f)(g) Ratio of net investment income to average net assets .... 3.53%(f)(g) Waiver/reimbursement .................................... 0.02%(g) Portfolio turnover rate ................................. 182% (a) Class A shares were initially offered on November 1, 2002. Per share data reflects activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming all distributions reinvested and no initial sales charge or contingent deferred sales charge. (d) Had the Advisor not waived or reimbursed a portion of expenses, total return would have been reduced. (e) Not annualized. (f) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (g) Annualized. COLUMBIA SHORT TERM BOND FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT THE PERIOD For the Period Ended December 31, ------- Class B Shares 2002(a) ------- - -------------------------------------------------------------------------------- Net asset value, beginning of period $ 8.63 - -------------------------------------------------------------------------------- Income from investment operations: Net investment income ................................. 0.03(b) Net realized and unrealized gain on investments ....... 0.04 - -------------------------------------------------------------------------------- Total from investment operations .................... 0.07 - -------------------------------------------------------------------------------- Less distributions: From net investment income ............................ (0.03) - -------------------------------------------------------------------------------- Net asset value, end of period $ 8.67 - -------------------------------------------------------------------------------- Total return ............................................ 0.77%(c)(d)(e) Ratios/Supplemental data: Net assets, end of period (in thousands) ................ $6,261 Ratio of expenses to average net assets ................. 1.75%(f)(g) Ratio of net investment income to average net assets .... 2.78%(f)(g) Waiver/reimbursement .................................... 0.04%(g) Portfolio turnover rate ................................. 182% (a) Class B shares were initially offered on November 1, 2002. Per share data reflects activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge. (d) Had the Advisor not waived or reimbursed a portion of expenses, total return would have been reduced. (e) Not annualized. (f) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (g) Annualized. See Accompanying Notes to Financial Statements 53 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA SHORT TERM BOND FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT THE PERIOD For the Period Ended December 31, ------- Class D Shares 2002(a) ------- - -------------------------------------------------------------------------------- Net asset value, beginning of period $ 8.63 - -------------------------------------------------------------------------------- Income from investment operations: Net investment income ................................. 0.04(b) Net realized and unrealized gain on investments ....... 0.04 - -------------------------------------------------------------------------------- Total from investment operations .................... 0.08 - -------------------------------------------------------------------------------- Less distributions: From net investment income ............................ (0.04) - -------------------------------------------------------------------------------- Net asset value, end of period $ 8.67 - -------------------------------------------------------------------------------- Total return ............................................ 0.88%(c)(d)(e) Ratios/Supplemental data: Net assets, end of period (in thousands) ................ $5,223 Ratio of expenses to average net assets ................. 1.15%(f)(g) Ratio of net investment income to average net assets .... 3.38%(f)(g) Waiver/reimbursement .................................... 0.64%(g) Portfolio turnover rate ................................. 182% (a) Class D shares were initially offered on November 1, 2002. Per share data reflects activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming all distributions reinvested and no initial sales charge or contingent deferred sales charge. (d) Had the Advisor and/or Distributor not waived or reimbursed a portion of expenses, total return would have been reduced. (e) Not annualized. (f) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (g) Annualized. See Accompanying Notes to Financial Statements 54 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA SHORT TERM BOND FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT THE PERIOD For the Period Ended December 31, ------- Class G Shares 2002(a) ------- - -------------------------------------------------------------------------------- Net asset value, beginning of period $ 8.63 - -------------------------------------------------------------------------------- Income from investment operations: Net investment income ................................. 0.03(b) Net realized and unrealized gain on investments ....... 0.04 - -------------------------------------------------------------------------------- Total from investment operations .................... 0.07 - -------------------------------------------------------------------------------- Less distributions: From net investment income ............................ (0.03) - -------------------------------------------------------------------------------- Net asset value, end of period $ 8.67 - -------------------------------------------------------------------------------- Total return ............................................ 0.85%(c)(d)(e) Ratios/Supplemental data: Net assets, end of period (in thousands) ................ $1,874 Ratio of expenses to average net assets ................. 1.55%(f)(g) Ratio of net investment income to average net assets .... 2.98%(f)(g) Waiver/reimbursement .................................... 0.05%(g) Portfolio turnover rate ................................. 182% (a) Class G shares were initially offered on November 1, 2002. Per share data reflects activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge. (d) Had the Advisor not waived or reimbursed a portion of expenses, total return would have been reduced. (e) Not annualized. (f) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (g) Annualized. See Accompanying Notes to Financial Statements 55 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA SHORT TERM BOND FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT THE PERIOD For the Period Ended December 31, ------- Class T Shares 2002(a) ------- - -------------------------------------------------------------------------------- Net asset value, beginning of period $ 8.63 - -------------------------------------------------------------------------------- Income from investment operations: Net investment income ................................. 0.04(b) Net realized and unrealized gain on investments ....... 0.04 - -------------------------------------------------------------------------------- Total from investment operations .................... 0.08 - -------------------------------------------------------------------------------- Less distributions: From net investment income ............................ (0.04) - -------------------------------------------------------------------------------- Net asset value, end of period $ 8.67 - -------------------------------------------------------------------------------- Total return ............................................ 0.95%(c)(d)(e) Ratios/Supplemental data: Net assets, end of period (in thousands) ................ $30,859 Ratio of expenses to average net assets ................. 0.90%(f)(g) Ratio of net investment income to average net assets .... 3.63%(f)(g) Waiver/reimbursement .................................... 0.02%(g) Portfolio turnover rate ................................. 204% (a) Class T shares were initially offered on November 1, 2002. Per share data reflects activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming all distributions reinvested and no initial sales charge or contingent deferred sales charge. (d) Had the Advisor not waived or reimbursed a portion of expenses, total return would have been reduced. (e) Not annualized. (f) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (g) Annualized. See Accompanying Notes to Financial Statements 56 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA SHORT TERM BOND FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
Year Ended December 31, -------- ------- ------- ------- ------- Class Z Shares 2002(a) 2001 2000 1999 1998 -------- ------- ------- ------- ------- - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, beginning of period $ 8.55 $ 8.36 $ 8.20 $ 8.39 $ 8.29 - ------------------------------------------------------------------------------------------------------------------------------------ Income from investment operations: Net investment income ................................ 0.32(b) 0.46(c) 0.42 0.33 0.38 Net realized and unrealized gain (loss) on investments 0.14 0.21(c) 0.16 (0.18) 0.14 - ------------------------------------------------------------------------------------------------------------------------------------ Total from investment operations ................... 0.46 0.67 0.58 0.15 0.52 - ------------------------------------------------------------------------------------------------------------------------------------ Less distributions: From net investment income ........................... (0.34) (0.46) (0.42) (0.33) (0.38) From net realized gains .............................. --(d) (0.02) -- (0.01) (0.04) - ------------------------------------------------------------------------------------------------------------------------------------ Total distributions ................................ (0.34) (0.48) (0.42) (0.34) (0.42) - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, end of period $ 8.67 $ 8.55 $ 8.36 $ 8.20 $ 8.39 - ------------------------------------------------------------------------------------------------------------------------------------ Total return (e) ....................................... 5.56% 8.07%(f) 7.26%(f) 1.80% 6.43% Ratios/Supplemental data: Net assets, end of period (in thousands) ............... $317,588 $62,930 $35,856 $38,072 $40,578 Ratio of expenses to average net assets (g) ............ 0.67% 0.75% 0.88% 0.91% 0.89% Ratio of net investment income to average net assets (g) 3.86% 5.29%(c) 5.09% 4.09% 4.55% Waiver/reimbursement ................................... --% 0.16% 0.02% --% --% Portfolio turnover rate ................................ 182% 137% 147% 211% 182%
(a) On November 1, 2002, the existing Fund shares were redesignated Class Z shares. (b) Per share data was calculated using average shares outstanding during the period. (c) Effective January 1, 2001, the Fund adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing and accreting premium and discount on all debt securities. The effect of this change for the year ended December 31, 2001, was to increase the ratio of net investment income to average net assets from 5.26% to 5.29%. The impact to net investment income and net realized and unrealized gain per share was less than $0.01. Per share data and ratios for periods prior to December 31, 2001 have not been restated to reflect this change in presentation. (d) Rounds to less than $0.01 per share. (e) Total return at net asset value assuming all distributions reinvested. (f) Had the Advisor not waived or reimbursed a portion of expenses, total return would have been reduced. (g) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. See Accompanying Notes to Financial Statements 57 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA FIXED INCOME SECURITIES FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT THE PERIOD For the Period Ended December 31, ------- Class A Shares 2002(a) ------- - -------------------------------------------------------------------------------- Net asset value, beginning of period $13.42 - -------------------------------------------------------------------------------- Income from investment operations: Net investment income ................................. 0.11(b) Net realized and unrealized gain on investments ....... 0.08 - -------------------------------------------------------------------------------- Total from investment operations .................... 0.19 - -------------------------------------------------------------------------------- Less distributions: From net investment income ............................ (0.09) - -------------------------------------------------------------------------------- Net asset value, end of period $13.52 - -------------------------------------------------------------------------------- Total return ............................................ 1.41%(c)(d) Ratios/Supplemental data: Net assets, end of period (in thousands) ................ $ 945 Ratio of expenses to average net assets ................. 0.92%(e)(f) Ratio of net investment income to average net assets .... 4.78%(e)(f) Portfolio turnover rate ................................. 103% (a) Class A shares were initially offered on November 1, 2002. Per share data reflects activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming all distributions reinvested and no initial sales charge or contingent deferred sales charge. (d) Not annualized. (e) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (f) Annualized. COLUMBIA FIXED INCOME SECURITIES FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT THE PERIOD For the Period Ended December 31, ------- Class B Shares 2002(a) ------- - -------------------------------------------------------------------------------- Net asset value, beginning of period $13.42 - -------------------------------------------------------------------------------- Income from investment operations: Net investment income ................................. 0.09(b) Net realized and unrealized gain on investments ....... 0.08 - -------------------------------------------------------------------------------- Total from investment operations .................... 0.17 - -------------------------------------------------------------------------------- Less distributions: From net investment income ............................ (0.07) - -------------------------------------------------------------------------------- Net asset value, end of period $13.52 - -------------------------------------------------------------------------------- Total return ............................................ 1.27%(c)(d) Ratios/Supplemental data: Net assets, end of period (in thousands) ................ $1,466 Ratio of expenses to average net assets ................. 1.71%(e)(f) Ratio of net investment income to average net assets .... 3.99%(e)(f) Portfolio turnover rate ................................. 103% (a) Class B shares were initially offered on November 1, 2002. Per share data reflects activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge. (d) Not annualized. (e) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (f) Annualized. See Accompanying Notes to Financial Statements 58 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA FIXED INCOME SECURITIES FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT THE PERIOD For the Period Ended December 31, ------- Class D Shares 2002(a) ------- - -------------------------------------------------------------------------------- Net asset value, beginning of period $13.42 - -------------------------------------------------------------------------------- Income from investment operations: Net investment income ................................. 0.09(b) Net realized and unrealized gain on investments ....... 0.08 - -------------------------------------------------------------------------------- Total from investment operations .................... 0.17 - -------------------------------------------------------------------------------- Less distributions: From net investment income ............................ (0.07) - -------------------------------------------------------------------------------- Net asset value, end of period $13.52 - -------------------------------------------------------------------------------- Total return ............................................ 1.30%(c)(d)(e) Ratios/Supplemental data: Net assets, end of period (in thousands) ................ $ 427 Ratio of expenses to average net assets ................. 1.58%(f)(g) Ratio of net investment income to average net assets .... 4.12%(f)(g) Waiver/reimbursement .................................... 0.15%(g) Portfolio turnover rate ................................. 103% (a) Class D shares were initially offered on November 1, 2002. Per share data reflects activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming all distributions reinvested and no initial sales charge or contingent deferred sales charge. (d) Not annualized. (e) Had the Distributor not waived or reimbursed a portion of expenses, total return would have been reduced. (f) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (g) Annualized. See Accompanying Notes to Financial Statements 59 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA FIXED INCOME SECURITIES FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
Year Ended December 31, -------- -------- -------- -------- -------- Class Z Shares 2002(a) 2001 2000 1999 1998 -------- -------- -------- -------- -------- - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, beginning of period $ 13.22 $ 12.97 $ 12.44 $ 13.42 $ 13.41 - ------------------------------------------------------------------------------------------------------------------------------------ Income from investment operations: Net investment income ................................ 0.67(b) 0.77(c) 0.82 0.78 0.83 Net realized and unrealized gain (loss) on investments 0.31 0.26(c) 0.53 (0.98) 0.14 - ------------------------------------------------------------------------------------------------------------------------------------ Total from investment operations ................... 0.98 1.03 1.35 (0.20) 0.97 - ------------------------------------------------------------------------------------------------------------------------------------ Less distributions: From net investment income ........................... (0.68) (0.78) (0.82) (0.78) (0.83) From net realized gains .............................. -- -- -- --(d) (0.13) - ------------------------------------------------------------------------------------------------------------------------------------ Total distributions ................................ (0.68) (0.78) (0.82) (0.78) (0.96) - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, end of period $ 13.52 $ 13.22 $ 12.97 $ 12.44 $ 13.42 - ------------------------------------------------------------------------------------------------------------------------------------ Total return (e) ....................................... 7.65% 8.13% 11.27% (1.50)% 7.44% Ratios/Supplemental data: Net assets, end of period (in thousands) ............... $547,524 $465,743 $378,799 $397,147 $422,330 Ratio of expenses to average net assets (f) ............ 0.67% 0.66% 0.66% 0.64% 0.65% Ratio of net investment income to average net assets (f) 5.03% 5.83%(c) 6.53% 6.03% 6.15% Portfolio turnover rate ................................ 103% 110% 105% 155% 107%
(a) On November 1, 2002, the existing Fund shares were redesignated Class Z shares. (b) Per share data was calculated using average shares outstanding during the period. (c) Effective January 1, 2001, the Fund adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing and accreting premium and discount on all debt securities. The effect of this change for the year ended December 31, 2001, was to decrease net investment income per share by $0.01, increase net realized and unrealized gain per share by $0.01 and decrease the ratio of net investment income to average net assets from 5.92% to 5.83%. Per share data and ratios for periods prior to December 31, 2001 have not been restated to reflect this change in presentation. (d) Rounds to less than $0.01 per share. (e) Total return at net asset value assuming all distributions reinvested. (f) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. See Accompanying Notes to Financial Statements 60 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA NATIONAL MUNICIPAL BOND FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT THE PERIOD For the Period Ended December 31, ------- Class A Shares 2002(a) ------ - -------------------------------------------------------------------------------- Net asset value, beginning of period $10.22 - -------------------------------------------------------------------------------- Income from investment operations: Net investment income ................................. 0.06(b) Net realized and unrealized gain on investments ....... 0.10 - -------------------------------------------------------------------------------- Total from investment operations .................... 0.16 - -------------------------------------------------------------------------------- Less distributions: From net investment income ............................ (0.06) From net realized gains ............................... (0.04) - -------------------------------------------------------------------------------- Total distributions ................................. (0.10) - -------------------------------------------------------------------------------- Net asset value, end of period $10.28 - -------------------------------------------------------------------------------- Total return ............................................ 1.59%(c)(d)(e) Ratios/Supplemental data: Net assets, end of period (in thousands) ................ $ 67 Ratio of expenses to average net assets ................. 0.90%(f)(g) Ratio of net investment income to average net assets .... 3.85%(f)(g) Waiver/reimbursement .................................... 0.56%(g) Portfolio turnover rate ................................. 43% (a) Class A shares were initially offered on November 1, 2002. Per share data reflects activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming all distributions reinvested and no initial sales charge or contingent deferred sales charge. (d) Had the Advisor not waived or reimbursed a portion of expenses, total return would have been reduced. (e) Not annualized. (f) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (g) Annualized. See Accompanying Notes to Financial Statements 61 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA NATIONAL MUNICIPAL BOND FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT THE PERIOD For the Period Ended December 31, ------- Class B Shares 2002(a) ------ - -------------------------------------------------------------------------------- Net asset value, beginning of period $10.22 - -------------------------------------------------------------------------------- Income from investment operations: Net investment income ................................. 0.05(b) Net realized and unrealized gain on investments ....... 0.10 - -------------------------------------------------------------------------------- Total from investment operations .................... 0.15 - -------------------------------------------------------------------------------- Less distributions: From net investment income ............................ (0.05) From net realized gains ............................... (0.04) - -------------------------------------------------------------------------------- Total distributions ................................. (0.09) - -------------------------------------------------------------------------------- Net asset value, end of period $10.28 - -------------------------------------------------------------------------------- Total return ............................................ 1.47%(c)(d)(e) Ratios/Supplemental data: Net assets, end of period (in thousands) ................ $ 72 Ratio of expenses to average net assets ................. 1.65%(f)(g) Ratio of net investment income to average net assets .... 3.10%(f)(g) Waiver/reimbursement .................................... 0.56%(g) Portfolio turnover rate ................................. 43% (a) Class B shares were initially offered on November 1, 2002. Per share data reflects activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge. (d) Had the Advisor not waived or reimbursed a portion of expenses, total return would have been reduced. (e) Not annualized. (f) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (g) Annualized. See Accompanying Notes to Financial Statements 62 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA NATIONAL MUNICIPAL BOND FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT THE PERIOD For the Period Ended December 31, ------- Class D Shares 2002(a) ------- - -------------------------------------------------------------------------------- Net asset value, beginning of period $10.22 - -------------------------------------------------------------------------------- Income from investment operations: Net investment income ................................. 0.05(b) Net realized and unrealized gain on investments ....... 0.10 - -------------------------------------------------------------------------------- Total from investment operations .................... 0.15 - -------------------------------------------------------------------------------- Less distributions: From net investment income ............................ (0.05) From net realized gains ............................... (0.04) - -------------------------------------------------------------------------------- Total distributions ................................. (0.09) - -------------------------------------------------------------------------------- Net asset value, end of period $10.28 - -------------------------------------------------------------------------------- Total return ............................................ 1.51%(c)(d)(e) Ratios/Supplemental data: Net assets, end of period (in thousands) ................ $ 50 Ratio of expenses to average net assets ................. 1.30%(f)(g) Ratio of net investment income to average net assets .... 3.45%(f)(g) Waiver/reimbursement .................................... 0.91%(g) Portfolio turnover rate ................................. 43% (a) Class D shares were initially offered on November 1, 2002. Per share data reflects activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming all distributions reinvested and no initial sales charge or contingent deferred sales charge. (d) Had the Advisor and/or Distributor not waived or reimbursed a portion of expenses, total return would have been reduced. (e) Not annualized. (f) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (g) Annualized. See Accompanying Notes to Financial Statements 63 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA NATIONAL MUNICIPAL BOND FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
For the Year Period Ended Ended December 31, December 31, ------- ------- ------- ------- Class Z Shares 2002(a) 2001 2000 1999(b) ------- ------- ------- ------- - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, beginning of period $ 9.77 $ 9.82 $ 9.28 $ 10.00 - ------------------------------------------------------------------------------------------------------------------------------------ Income from investment operations: Net investment income ................................ 0.41(c) 0.44(d) 0.44 0.34 Net realized and unrealized gain (loss) on investments 0.55 (0.03)(d) 0.54 (0.72) - ------------------------------------------------------------------------------------------------------------------------------------ Total from investment operations ................... 0.96 0.41 0.98 (0.38) - ------------------------------------------------------------------------------------------------------------------------------------ Less distributions: From net investment income ........................... (0.41) (0.44) (0.44) (0.34) From net realized gains .............................. (0.04) (0.02) -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total distributions ................................ (0.45) (0.46) (0.44) (0.34) - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, end of period $ 10.28 $ 9.77 $ 9.82 $ 9.28 - ------------------------------------------------------------------------------------------------------------------------------------ Total return (e)(f) .................................... 10.04% 4.16% 10.87% (3.93)%(g) Ratios/Supplemental data: Net assets, end of period (in thousands) ............... $16,470 $13,769 $10,898 $10,135 Ratio of expenses to average net assets (h) ............ 0.65% 0.65% 0.65% 0.65%(i) Ratio of net investment income to average net assets (h) 4.10% 4.44%(d) 4.68% 4.21%(i) Waiver/reimbursement ................................... 0.50% 0.66% 0.64% 1.07%(i) Portfolio turnover rate ................................ 43% 20% 21% 12%(g)
(a) On November 1, 2002, the existing Fund shares were redesignated Class Z shares. (b) The Fund commenced investment operations on February 10, 1999. Per share data reflects activity from that date. (c) Per share data was calculated using average shares outstanding during the period. (d) Effective January 1, 2001, the Fund adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing and accreting premium and discount on all debt securities. The effect of this change for the year ended December 31, 2001, was to decrease the ratio of net investment income to average net assets from 4.47% to 4.44%. The impact to net investment income and net realized and unrealized loss per share was less than $0.01. Per share data and ratios for periods prior to December 31, 2001 have not been restated to reflect this change in presentation. (e) Total return at net asset value assuming all distributions reinvested. (f) Had the Advisor not waived or reimbursed a portion of expenses, total return would have been reduced. (g) Not annualized. (h) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (i) Annualized. See Accompanying Notes to Financial Statements 64 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA OREGON MUNICIPAL BOND FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT THE PERIOD For the Period Ended December 31, ------- Class A Shares 2002(a) ------- - -------------------------------------------------------------------------------- Net asset value, beginning of period $ 12.52 - -------------------------------------------------------------------------------- Income from investment operations: Net investment income ................................. 0.08(b) Net realized and unrealized gain on investments ....... 0.07 - -------------------------------------------------------------------------------- Total from investment operations .................... 0.15 - -------------------------------------------------------------------------------- Less distributions: From net investment income ............................ (0.08) From net realized gains ............................... (0.09) - -------------------------------------------------------------------------------- Total distributions ................................. (0.17) - -------------------------------------------------------------------------------- Net asset value, end of period $ 12.50 - -------------------------------------------------------------------------------- Total return ............................................ 1.19%(c)(d) Ratios/Supplemental data: Net assets, end of period (in thousands) ................ $ 477 Ratio of expenses to average net assets ................. 0.92%(e)(f) Ratio of net investment income to average net assets .... 4.11%(e)(f) Portfolio turnover rate ................................. 21% (a) Class A shares were initially offered on November 1, 2002. Per share data reflects activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming all distributions reinvested and no initial sales charge or contingent deferred sales charge. (d) Not annualized. (e) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (f) Annualized. COLUMBIA OREGON MUNICIPAL BOND FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT THE PERIOD For the Period Ended December 31, ------- Class B Shares 2002(a) ------- - -------------------------------------------------------------------------------- Net asset value, beginning of period $12.52 - -------------------------------------------------------------------------------- Income from investment operations: Net investment income ................................. 0.06(b) Net realized and unrealized gain on investments ....... 0.08 - -------------------------------------------------------------------------------- Total from investment operations .................... 0.14 - -------------------------------------------------------------------------------- Less distributions: From net investment income ............................ (0.07) From net realized gains ............................... (0.09) - -------------------------------------------------------------------------------- Total distributions ................................. (0.16) - -------------------------------------------------------------------------------- Net asset value, end of period $12.50 - -------------------------------------------------------------------------------- Total return ............................................ 1.10%(c)(d) Ratios/Supplemental data: Net assets, end of period (in thousands) ................ $ 373 Ratio of expenses to average net assets ................. 1.67%(e)(f) Ratio of net investment income to average net assets .... 3.36%(e)(f) Portfolio turnover rate ................................. 21% (a) Class B shares were initially offered on November 1, 2002. Per share data reflects activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge. (d) Not annualized. (e) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (f) Annualized. See Accompanying Notes to Financial Statements 65 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA OREGON MUNICIPAL BOND FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT THE PERIOD For the Period Ended December 31, ------- Class D Shares 2002(a) ------- - -------------------------------------------------------------------------------- Net asset value, beginning of period $12.52 - -------------------------------------------------------------------------------- Income from investment operations: Net investment income ................................. 0.07(b) Net realized and unrealized gain on investments ....... 0.07 - -------------------------------------------------------------------------------- Total from investment operations .................... 0.14 - -------------------------------------------------------------------------------- Less distributions: From net investment income ............................ (0.07) From net realized gains ............................... (0.09) - -------------------------------------------------------------------------------- Total distributions ................................. (0.16) - -------------------------------------------------------------------------------- Net asset value, end of period $12.50 - -------------------------------------------------------------------------------- Total return ............................................ 1.14%(c)(d)(e) Ratios/Supplemental data: Net assets, end of period (in thousands) ................ $ 448 Ratio of expenses to average net assets ................. 1.32%(f)(g) Ratio of net investment income to average net assets .... 3.71%(f)(g) Waiver/reimbursement .................................... 0.35%(g) Portfolio turnover rate ................................. 21% (a) Class D shares were initially offered on November 1, 2002. Per share data reflects activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming all distributions reinvested and no initial sales charge or contingent deferred sales charge. (d) Had the Distributor not waived or reimbursed a portion of expenses, total return would have been reduced. (e) Not annualized. (f) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (g) Annualized. See Accompanying Notes to Financial Statements 66 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA OREGON MUNICIPAL BOND FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
Year Ended December 31, -------- -------- -------- -------- -------- Class Z Shares 2002(a) 2001 2000 1999 1998 -------- -------- -------- -------- -------- - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, beginning of period $ 12.08 $ 12.13 $ 11.56 $ 12.46 $ 12.47 - ------------------------------------------------------------------------------------------------------------------------------------ Income from investment operations: Net investment income ................................ 0.55(b) 0.57(c) 0.58 0.56 0.58 Net realized and unrealized gain (loss) on investments 0.54 (0.02)(c) 0.58 (0.88) 0.10 - ------------------------------------------------------------------------------------------------------------------------------------ Total from investment operations ................... 1.09 0.55 1.16 (0.32) 0.68 - ------------------------------------------------------------------------------------------------------------------------------------ Less distributions: From net investment income ........................... (0.55) (0.57) (0.58) (0.56) (0.58) From net realized gains .............................. (0.12) (0.03) (0.01) (0.02) (0.11) - ------------------------------------------------------------------------------------------------------------------------------------ Total distributions ................................ (0.67) (0.60) (0.59) (0.58) (0.69) - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, end of period $ 12.50 $ 12.08 $ 12.13 $ 11.56 $ 12.46 - ------------------------------------------------------------------------------------------------------------------------------------ Total return (d) ....................................... 9.24% 4.55% 10.28% (2.65)% 5.58% Ratios/Supplemental data: Net assets, end of period (in thousands) ............... $508,865 $491,638 $436,544 $409,919 $462,809 Ratio of expenses to average net assets (e) ............ 0.58% 0.57% 0.58% 0.57% 0.58% Ratio of net investment income to average net assets (e) 4.45% 4.64%(c) 4.92% 4.64% 4.60% Portfolio turnover rate ................................ 21% 14% 22% 28% 17%
(a) On November 1, 2002, the existing Fund shares were redesignated Class Z shares. (b) Per share data was calculated using average shares outstanding during the period. (c) Effective January 1, 2001, the Fund adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing and accreting premium and discount on all debt securities. The effect of this change for the year ended December 31, 2001, was less than $0.01 to net investment income and net realized and unrealized loss per share and less than 0.01% to the ratio of net investment income to average net assets. Per share data and ratios for periods prior to December 31, 2001 have not been restated to reflect this change in presentation. (d) Total return at net asset value assuming all distributions reinvested. (e) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. See Accompanying Notes to Financial Statements 67 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA HIGH YIELD FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT THE PERIOD For the Period Ended December 31, ------- Class A Shares 2002(a) ------- - -------------------------------------------------------------------------------- Net asset value, beginning of period $ 8.17 - -------------------------------------------------------------------------------- Income from investment operations: Net investment income ................................ 0.09(b) Net realized and unrealized gain on investments ...... 0.20 - -------------------------------------------------------------------------------- Total from investment operations ................... 0.29 - -------------------------------------------------------------------------------- Less distributions: From net investment income ........................... (0.09) - -------------------------------------------------------------------------------- Net asset value, end of period $ 8.37 - -------------------------------------------------------------------------------- Total return ........................................... 3.50%(c)(d) Ratios/Supplemental data: Net assets, end of period (in thousands) ............... $33,992 Ratio of expenses to average net assets ................ 1.15%(e)(f) Ratio of net investment income to average net assets ... 6.46%(e)(f) Portfolio turnover rate ................................ 42% (a) Class A shares were initially offered on November 1, 2002. Per share data reflects activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming all distributions reinvested and no initial sales charge or contingent deferred sales charge. (d) Not annualized. (e) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (f) Annualized. COLUMBIA HIGH YIELD FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT THE PERIOD For the Period Ended December 31, ------- Class B Shares 2002(a) ------- - -------------------------------------------------------------------------------- Net asset value, beginning of period $ 8.17 - -------------------------------------------------------------------------------- Income from investment operations: Net investment income ................................ 0.07(b) Net realized and unrealized gain on investments ...... 0.20 - -------------------------------------------------------------------------------- From investment operations ......................... 0.27 - -------------------------------------------------------------------------------- Less distributions: From net investment income ........................... (0.07) - -------------------------------------------------------------------------------- Net asset value, end of period $ 8.37 - -------------------------------------------------------------------------------- Total return ........................................... 3.33%(c)(d) Ratios/Supplemental data: Net assets, end of period (in thousands) ............... $16,701 Ratio of expenses to average net assets ................ 1.90%(e)(f) Ratio of net investment income to average net assets ... 5.71%(e)(f) Portfolio turnover rate ................................ 42% (a) Class B shares were initially offered on November 1, 2002. Per share data reflects activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge. (d) Not annualized. (e) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (f) Annualized. See Accompanying Notes to Financial Statements 68 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA HIGH YIELD FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT THE PERIOD For the Period Ended December 31, ------- Class D Shares 2002(a) ------- - -------------------------------------------------------------------------------- Net asset value, beginning of period $ 8.17 - -------------------------------------------------------------------------------- Income from investment operations: Net investment income ................................ 0.07(b) Net realized and unrealized gain on investments ...... 0.20 - -------------------------------------------------------------------------------- Total from investment operations ................... 0.27 - -------------------------------------------------------------------------------- Less distributions: From net investment income ........................... (0.07) - -------------------------------------------------------------------------------- Net asset value, end of period $ 8.37 - -------------------------------------------------------------------------------- Total return ........................................... 3.35%(c)(d)(e) Ratios/Supplemental data: Net assets, end of period (in thousands) ............... $18,035 Ratio of expenses to average net assets ................ 1.75%(f)(g) Ratio of net investment income to average net assets ... 5.86%(f)(g) Waiver/reimbursement ................................... 0.15%(g) Portfolio turnover rate ................................ 42% (a) Class D shares were initially offered on November 1, 2002. Per share data reflects activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming all distributions reinvested and no initial sales charge or contingent deferred sales charge. (d) Not annualized. (e) Had the Distributor not waived a portion of expenses, total return would have been reduced. (f) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (g) Annualized. See Accompanying Notes to Financial Statements 69 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA HIGH YIELD FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
Year Ended December 31, -------- -------- ------- ------- ------- Class Z Shares 2002(a) 2001 2000 1999 1998 -------- -------- ------- ------- ------- - ---------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 8.87 $ 8.98 $ 9.32 $ 9.84 $ 10.04 - ---------------------------------------------------------------------------------------------------------------------------------- Income from investment operations: Net investment income ................................ 0.57(b) 0.67(c) 0.75 0.74 0.76 Net realized and unrealized loss on investments ...... (0.48) (0.09)(c) (0.34) (0.51) (0.15) - ---------------------------------------------------------------------------------------------------------------------------------- Total from investment operations ................... 0.09 0.58 0.41 0.23 0.61 - ---------------------------------------------------------------------------------------------------------------------------------- Less distributions: From net investment income ........................... (0.59) (0.69) (0.75) (0.74) (0.76) From net realized gains .............................. -- -- -- (0.01) (0.05) - ---------------------------------------------------------------------------------------------------------------------------------- Total distributions ................................ (0.59) (0.69) (0.75) (0.75) (0.81) - ---------------------------------------------------------------------------------------------------------------------------------- Net asset value, end of period $ 8.37 $ 8.87 $ 8.98 $ 9.32 $ 9.84 - ---------------------------------------------------------------------------------------------------------------------------------- Total return (d) ....................................... 1.17% 6.63% 4.61% 2.38% 6.26% Ratios/Supplemental data: Net assets, end of period (in thousands) ............... $702,785 $238,994 $97,575 $71,678 $57,524 Ratio of expenses to average net assets (e) ............ 0.77% 0.85% 0.93% 0.91% 0.95% Ratio of net investment income to average net assets (e) 6.84% 7.47%(c) 8.22% 7.71% 7.52% Portfolio turnover rate ................................ 42% 69% 50% 49% 79%
(a) On November 1, 2002, the existing Fund shares were redesignated Class Z shares. (b) Per share data was calculated using average shares outstanding during the period. (c) Effective January 1, 2001, the Fund adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing and accreting premium and discount on all debt securities. The effect of this change for the year ended December 31, 2001, was to decrease net investment income per share by $0.02, decrease net realized and unrealized loss per share by $0.02 and decrease the ratio of net investment income to average net assets from 7.64% to 7.47%. Per share data and ratios for periods prior to December 31, 2001 have not been restated to reflect this change in presentation. (d) Total return at net asset value assuming all distributions reinvested. (e) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. See Accompanying Notes to Financial Statements 70 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA DAILY INCOME COMPANY FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
Year Ended December 31, ---------- ---------- ---------- ---------- ---------- Class Z Shares 2002(a) 2001 2000 1999 1998 ---------- ---------- ---------- ---------- ---------- - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, beginning of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 - ------------------------------------------------------------------------------------------------------------------------------------ Income from investment operations: Net investment income ................................ 0.012(b) 0.036 0.058 0.046 0.050 - ------------------------------------------------------------------------------------------------------------------------------------ Total from investment operations ................... 0.012 0.036 0.058 0.046 0.050 - ------------------------------------------------------------------------------------------------------------------------------------ Less distributions: From net investment income ........................... (0.012) (0.036) (0.058) (0.046) (0.050) - ------------------------------------------------------------------------------------------------------------------------------------ Total distributions ................................ (0.012) (0.036) (0.058) (0.046) (0.050) - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 - ------------------------------------------------------------------------------------------------------------------------------------ Total return (c) ....................................... 1.17% 3.70% 6.00% 4.71% 5.09% Ratios/Supplemental data: Net assets, end of period (in thousands) ............... $1,136,075 $1,253,535 $1,198,151 $1,165,289 $1,109,141 Ratio of expenses to average net assets (d) ............ 0.60% 0.60% 0.60% 0.64% 0.62% Ratio of net investment income to average net assets (d) 1.16% 3.61% 5.82% 4.61% 4.97%
(a) On November 1, 2002, the existing Fund shares were redesignated Class Z shares. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming all distributions reinvested. (d) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. See Accompanying Notes to Financial Statements 71 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA COMMON STOCK FUND DECEMBER 31, 2002 Shares Value - -------------------------------------------------------------------------------- COMMON STOCKS (97.2%) CONSUMER DISCRETIONARY (16.8%) Auto Components (0.3%) Magna International, Inc., Class A ......... 23,350 $ 1,311,103 ----------- Automobiles (0.8%) Honda Motor Co., Ltd., ADR ................. 178,300 3,220,098 ----------- Hotels, Restaurants & Leisure (0.8%) Hilton Hotels Corp. ........................ 245,400 3,119,034 ----------- Household Durables (1.0%) Fortune Brands, Inc. ....................... 22,600 1,051,126 Koninklijke (Royal) Philips Electronics NV, NY Shares ................ 169,300 2,993,224 ----------- 4,044,350 ----------- Media (5.4%) AOL Time Warner, Inc. (a) .................. 408,939 5,357,101 Clear Channel Communications, Inc. (a) ................................. 66,425 2,476,988 Comcast Corp., Class A (a) ................. 243,842 5,747,356 Liberty Media Corp., Class A (a) .......... 479,136 4,283,476 Viacom, Inc., Class B (a) .................. 85,800 3,497,208 Walt Disney Co. ............................ 70,175 1,144,554 ----------- 22,506,683 ----------- Multi-Line Retail (6.4%) Dollar General Corp. ....................... 159,500 1,906,025 Kohl's Corp. (a) ........................... 136,550 7,639,973 Nordstrom, Inc. ............................ 112,050 2,125,589 Wal-Mart Stores, Inc. ...................... 298,150 15,059,557 ----------- 26,731,144 ----------- Specialty Retail (2.1%) Best Buy Co., Inc. (a) ..................... 22,300 538,545 CarMax, Inc. (a) ........................... 89,739 1,604,533 Staples, Inc. (a) .......................... 363,700 6,655,710 ----------- 8,798,788 ----------- Consumer Staples (6.0%) Beverages (2.0%) Pepsi Bottling Group, Inc. ................. 92,200 2,369,540 PepsiCo, Inc. .............................. 141,400 5,969,908 ----------- 8,339,448 ----------- Food Products (1.0%) Unilever NV, NY Shares ..................... 65,400 4,035,834 ----------- Household Products (0.3%) Procter & Gamble Co. ....................... 14,600 1,254,724 ----------- Personal Products (1.5%) Alberto-Culver Co., Class B ................ 33,700 1,698,480 Gillette Co. ............................... 154,050 4,676,958 ----------- 6,375,438 ----------- Tobacco (1.2%) Philip Morris Companies, Inc. .............. 122,900 4,981,137 ----------- Energy (7.2%) Energy Equipment & Services (1.6%) ENSCO International, Inc. .................. 38,300 1,127,935 GlobalSantaFe Corp. ........................ 97,625 2,374,240 Noble Corp. (a) ............................ 62,925 2,211,814 Rowan Companies, Inc. ...................... 40,750 925,025 ----------- 6,639,014 ----------- Oil & Gas (5.6%) Apache Corp. ............................... 75,530 4,304,455 ChevronTexaco Corp. ........................ 19,500 1,296,360 ConocoPhillips ............................. 28,850 1,396,052 Devon Energy Corp. ......................... 83,100 3,814,290 EOG Resources, Inc. ........................ 112,500 4,491,000 Exxon Mobil Corp. .......................... 223,732 7,817,196 ----------- 23,119,353 ----------- Financials (21.6%) Banks (6.2%) Bank of America Corp. ...................... 143,505 9,983,643 Bank of New York Co., Inc. ................. 74,700 1,789,812 Bank One Corp. ............................. 197,250 7,209,488 Fifth Third Bancorp ........................ 29,300 1,715,515 KeyCorp .................................... 40,900 1,028,226 Wells Fargo & Co. .......................... 90,500 4,241,735 ----------- 25,968,419 ----------- Diversified Financials (10.7%) American Express Co. ....................... 235,400 8,321,390 Charles Schwab Corp. ....................... 69,400 752,990 Citigroup, Inc. ............................ 434,139 15,277,351 Franklin Resources, Inc. ................... 47,600 1,622,208 Freddie Mac ................................ 52,450 3,097,173 J.P. Morgan Chase & Co. .................... 113,510 2,724,240 MBNA Corp. ................................. 204,350 3,886,737 Merrill Lynch & Co., Inc. .................. 138,900 5,271,255 Morgan Stanley ............................. 38,350 1,530,932 SLM Corp. .................................. 20,900 2,170,674 ----------- 44,654,950 ----------- See Accompanying Notes to Financial Statements 72 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- Shares Value - -------------------------------------------------------------------------------- Insurance (4.7%) American International Group, Inc. ......... 203,037 $11,745,690 Berkshire Hathaway, Inc., Class A (a) .............................. 30 2,182,500 Hartford Financial Services Group, Inc. .............................. 48,700 2,212,441 Marsh & McLennan Companies, Inc ...................................... 74,100 3,424,161 ----------- 19,564,792 ----------- Health Care (12.5%) Biotechnology (1.0%) Amgen, Inc. (a) ............................ 54,200 2,620,028 MedImmune, Inc. (a) ........................ 46,400 1,260,688 ----------- 3,880,716 ----------- Health Care Equipment & Supplies (0.3%) Medtronic, Inc. ............................ 29,400 1,340,640 ----------- Health Care Providers & Services (1.1%) AmerisourceBergen Corp. .................... 35,100 1,906,281 HCA, Inc. .................................. 30,300 1,257,450 UnitedHealth Group, Inc. ................... 17,400 1,452,900 ----------- 4,616,631 ----------- Pharmaceuticals (10.1%) Abbott Laboratories ........................ 166,950 6,678,000 Bristol-Myers Squibb Co. ................... 218,268 5,052,904 Johnson & Johnson .......................... 76,400 4,103,444 Merck & Co., Inc. .......................... 55,800 3,158,838 Pfizer, Inc. ............................... 277,974 8,497,665 Pharmacia Corp. ............................ 194,100 8,113,380 Schering-Plough Corp. ...................... 40,600 901,320 Wyeth ...................................... 152,300 5,696,020 ----------- 42,201,571 ----------- Industrials (10.2%) Aerospace & Defense (1.6%) Northrop Grumman Corp. ..................... 27,300 2,648,100 United Technologies Corp. .................. 67,950 4,208,823 ----------- 6,856,923 ----------- Airlines (0.2%) Continental Airlines, Inc., Class B (a) .............................. 89,700 650,325 ----------- Commercial Services & Supplies (1.5%) Concord EFS, Inc. (a) ...................... 105,700 1,663,718 First Data Corp. ........................... 97,300 3,445,393 Waste Management, Inc. ..................... 48,800 1,118,496 ----------- 6,227,607 ----------- Industrial Conglomerates (4.8%) 3M Co. ..................................... 34,400 4,241,520 General Electric Co. ....................... 414,750 10,099,163 Tyco International Ltd. .................... 340,366 5,813,451 ----------- 20,154,134 ----------- Machinery (1.4%) Illinois Tool Works, Inc. .................. 65,000 4,215,900 Navistar International Corp. (a) .......... 61,900 1,504,789 ----------- 5,720,689 ----------- Road & Rail (0.3%) Union Pacific Corp. ........................ 19,900 1,191,413 ----------- Trading Companies & Distribution (0.4%) W.W. Grainger, Inc. ........................ 35,600 1,835,180 ----------- Information Technology (14.0%) Communications Equipment (1.7%) Cisco Systems, Inc. (a) .................... 456,265 5,977,072 Comverse Technology, Inc. (a) .............. 107,500 1,077,150 ----------- 7,054,222 ----------- Computers & Peripherals (3.4%) Dell Computer Corp. (a) .................... 109,400 2,925,356 EMC Corp. (a) .............................. 190,800 1,171,512 Hewlett-Packard Co. ........................ 184,400 3,201,184 International Business Machines Corp ..................................... 88,300 6,843,250 ----------- 14,141,302 ----------- Electronic Equipment & Instruments (0.2%) Waters Corp. (a) ........................... 41,600 906,048 ----------- Semiconductor Equipment & Products (2.6%) Applied Materials, Inc. (a) ................ 115,900 1,510,177 Intel Corp. ................................ 157,300 2,449,161 Microchip Technology, Inc. ................. 137,750 3,367,988 Micron Technology, Inc. (a) ................ 103,475 1,007,847 National Semiconductor Corp. (a) .......... 72,800 1,092,728 Taiwan Semiconductor Manufacturing Co., Ltd., ADR (a) ....................... 186,520 1,314,966 ----------- 10,742,867 ----------- Software (6.1%) Intuit, Inc. (a) ........................... 23,175 1,087,371 Microsoft Corp. (a) ........................ 358,200 18,518,940 Oracle Corp. (a) ........................... 283,250 3,059,100 SAP AG, ADR ................................ 124,800 2,433,600 VERITAS Software Corp. (a) ................. 31,600 493,592 ----------- 25,592,603 ----------- Materials (4.4%) Chemicals (1.4%) Dow Chemical Co. ........................... 112,800 3,350,160 Praxair, Inc. .............................. 39,600 2,287,692 ----------- 5,637,852 ----------- See Accompanying Notes to Financial Statements 73 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA COMMON STOCK FUND (CONT.) DECEMBER 31, 2002 Shares Value - -------------------------------------------------------------------------------- Metals & Mining (1.8%) Barrick Gold Corp. ........................ 159,000 $ 2,450,190 Freeport-McMoRan Copper & Gold, Inc., Class B (a) ............... 108,400 1,818,952 Inco Ltd. (a) ............................. 90,400 1,918,288 Nucor Corp. ............................... 34,000 1,404,200 ------------ 7,591,630 ------------ Paper & Forest Products (1.2%) Georgia-Pacific Corp. ..................... 110,400 1,784,064 International Paper Co. ................... 33,300 1,164,501 Weyerhaeuser Co. .......................... 45,200 2,224,292 ------------ 5,172,857 ------------ Telecommunication Services (4.5%) Diversified Telecommunication Services (4.0%) AT&T Corp. ................................ 98,380 2,568,702 SBC Communications, Inc. .................. 326,150 8,841,921 Verizon Communications, Inc. .............. 140,000 5,425,000 ------------ 16,835,623 ------------ Wireless Telecommunication Services (0.5%) Vodafone Group PLC, ADR ................... 116,100 2,103,733 ------------ Total Common Stocks (Cost of$ 400,425,236) .................. 405,118,875 ------------ Preferred Stock (1.5%) Consumer Discretionary (1.5%) Media (1.5%) News Corp., Ltd., ADR (Cost of $5,920,625) .................... 267,925 6,068,501 ------------ Short-Term Obligation (0.9%) Par Repurchase agreement with State Street Bank & Trust Co., dated 12/31/02, due 01/02/03 at 1.050%, collateralized by U.S. Treasury Notes with maturities to 02/15/12, market value $3,983,609 (repurchase proceeds $3,900,228) (Cost of $3,900,000) .................... $3,900,000 3,900,000 ------------ Total Investments (99.6%) (Cost of $410,245,861) (b) .............. 415,087,376 ------------ Other Assets & Liabilities, Net (0.4%) ........ 1,722,000 ------------ Net Assets (100.0%) ........................... $416,809,376 ============ Notes to Schedule of Investments: (a) Non-income producing. (b) Cost for federal income tax purposes is $414,889,151. Acronym Name ------- ---- ADR American Depositary Receipt COLUMBIA GROWTH FUND DECEMBER 31, 2002 Shares Value - -------------------------------------------------------------------------------- Common Stocks (99.3%) Consumer Discretionary (18.7%) Hotels, Restaurants & Leisure (0.9%) Wendy's International, Inc. ................ 94,400 $ 2,555,408 Yum! Brands, Inc. (a) ...................... 202,050 4,893,651 ----------- 7,449,059 ----------- Household Durables (0.9%) Fortune Brands, Inc. ....................... 81,250 3,778,937 Newell Rubbermaid, Inc. .................... 134,300 4,073,319 ----------- 7,852,256 ----------- Internet & Catalog Retail (0.8%) eBay, Inc. (a) ............................. 92,400 6,266,568 ----------- Media (5.1%) AOL Time Warner, Inc. (a) .................. 463,745 6,075,059 Clear Channel Communications, Inc. (a) ................................. 342,231 12,761,794 Fox Entertainment Group, Inc., Class A (a) .............................. 80,850 2,096,441 Liberty Media Corp., Class A (a) ........... 338,875 3,029,543 Omnicom Group, Inc. ........................ 128,400 8,294,640 Viacom, Inc., Class B (a) .................. 244,050 9,947,478 ----------- 42,204,955 ----------- Multi-Line Retail (6.0%) Kohl's Corp. (a) ........................... 301,344 16,860,196 Target Corp. ............................... 231,700 6,951,000 Wal-Mart Stores, Inc. ...................... 507,200 25,618,672 ----------- 49,429,868 ----------- Specialty Retail (5.0%) Bed Bath & Beyond, Inc. (a) ................ 350,500 12,102,765 Best Buy Co., Inc. (a) ..................... 302,500 7,305,375 Lowe's Companies, Inc. ..................... 244,800 9,180,000 Staples, Inc. (a) .......................... 717,550 13,131,165 ----------- 41,719,305 ----------- Consumer Staples (9.6%) Beverages (3.4%) Anheuser-Busch Companies, Inc. ............. 90,500 4,380,200 Pepsi Bottling Group, Inc. ................. 272,100 6,992,970 See Accompanying Notes to Financial Statements 74 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- Shares Value - -------------------------------------------------------------------------------- PepsiCo, Inc. ............................... 403,250 $ 17,025,215 ------------ 28,398,385 ------------ Food & Drug Retailing (0.5%) Walgreen Co. ................................ 147,400 4,302,606 ------------ Food Products (1.3%) Kraft Foods, Inc., Class A .................. 170,900 6,653,137 Wm. Wrigley, Jr. Co. ........................ 72,200 3,962,336 ------------ 10,615,473 ------------ Household Products (1.5%) Procter & Gamble Co. ........................ 149,450 12,843,733 ------------ Personal Products (1.9%) Alberto-Culver Co., Class B ................. 150,250 7,572,600 Gillette Co. ................................ 261,550 7,940,658 ------------ 15,513,258 ------------ Tobacco (1.0%) Philip Morris Companies, Inc. ............... 200,550 8,128,292 ------------ Energy (2.0%) Energy Equipment & Services (2.0%) BJ Services Co. (a) ......................... 64,250 2,075,917 ENSCO International, Inc. ................... 100,300 2,953,835 Nabors Industries Ltd. (a) .................. 145,550 5,133,549 Noble Corp. (a) ............................. 174,550 6,135,433 ------------ 16,298,734 ------------ Financials (11.9%) Banks (0.4%) Fifth Third Bancorp ......................... 60,800 3,559,840 ------------ Diversified Financials (8.7%) Citigroup, Inc. ............................. 694,966 24,455,854 Fannie Mae .................................. 205,400 13,213,382 Freddie Mac ................................. 147,083 8,685,251 Goldman Sachs Group, Inc. ................... 81,700 5,563,770 MBNA Corp. .................................. 619,250 11,778,135 Morgan Stanley .............................. 86,100 3,437,112 SLM Corp. ................................... 44,050 4,575,033 ------------ 71,708,537 ------------ Insurance (2.8%) American International Group, Inc ....................................... 284,544 16,460,870 Marsh & McLennan Companies, Inc ....................................... 147,000 6,792,870 ------------ 23,253,740 ------------ Health Care (24.7%) Biotechnology (2.4%) Amgen, Inc. (a) ............................. 332,100 16,053,714 MedImmune, Inc. (a) ......................... 152,300 4,137,991 ------------ 20,191,705 ------------ Health Care Equipment & Supplies (2.0%) Medtronic, Inc. ............................. 276,065 12,588,564 St. Jude Medical, Inc. (a) .................. 110,500 4,389,060 ------------ 16,977,624 ------------ Health Care Providers & Services (4.6%) AmerisourceBergen Corp. ..................... 122,000 6,625,820 Anthem, Inc. (a) ............................ 120,250 7,563,725 Cardinal Health, Inc. ....................... 127,100 7,523,049 HCA, Inc. ................................... 94,250 3,911,375 UnitedHealth Group, Inc. .................... 85,800 7,164,300 WellPoint Health Networks, Inc. (a) .................................. 70,600 5,023,896 ------------ 37,812,165 ------------ Pharmaceuticals (15.7%) Abbott Laboratories ......................... 390,500 15,620,000 Johnson & Johnson ........................... 466,550 25,058,401 Merck & Co., Inc. ........................... 80,000 4,528,800 Pfizer, Inc. ................................ 1,175,225 35,926,628 Pharmacia Corp. ............................. 596,900 24,950,420 Teva Pharmaceutical Industries Ltd., ADR ................................. 171,200 6,610,032 Wyeth ....................................... 467,600 17,488,240 ------------ 130,182,521 ------------ Industrials (7.9%) Commercial Services & Supplies (1.8%) First Data Corp. ............................ 427,600 15,141,316 ------------ Industrial Conglomerates (6.1%) 3M Co. ...................................... 42,200 5,203,260 General Electric Co. ........................ 1,204,075 29,319,226 Tyco International Ltd. ..................... 934,500 15,961,260 ------------ 50,483,746 ------------ Information Technology (24.5%) Communications Equipment (2.7%) Alcatel SA, ADR ............................. 656,600 2,915,304 Cisco Systems, Inc. (a) ..................... 1,496,275 19,601,202 ------------ 22,516,506 ------------ Computers & Peripherals (4.4%) Dell Computer Corp. (a) ..................... 707,100 18,907,854 Hewlett-Packard Co. ......................... 357,200 6,200,992 International Business Machines Corp. ............................ 142,050 11,008,875 ------------ 36,117,721 ------------ Electronic Equipment & Instruments (1.4%) Flextronics International Ltd. (a) .......... 1,005,700 8,236,683 Thermo Electron Corp. (a) ................... 157,800 3,174,936 ------------ 11,411,619 ------------ See Accompanying Notes to Financial Statements 75 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA GROWTH FUND (CONT.) DECEMBER 31, 2002 Shares Value - ------------------------------------------------------------------------------- Information Technology Consulting & Services (0.6%) Accenture Ltd., Class A (a) ..................... 146,400 $ 2,633,736 Affiliated Computer Services, Inc., Class A (a) ............................. 36,200 1,905,930 ------------- 4,539,666 ------------- Semiconductor Equipment & Products (5.4%) Intel Corp. ..................................... 899,850 14,010,665 Intersil Corp., Class A (a) ..................... 327,600 4,566,744 Microchip Technology, Inc. ...................... 313,600 7,667,520 Micron Technology, Inc. (a) ..................... 224,450 2,186,143 PMC-Sierra, Inc. (a) ............................ 810,100 4,504,156 Samsung Electronics Co., Ltd., GDR (b) ....................................... 67,000 8,944,500 Texas Instruments, Inc. ......................... 216,850 3,254,919 ------------- 45,134,647 ------------- Software (10.0%) Electronic Arts, Inc. (a) ....................... 105,150 5,233,315 Intuit, Inc. (a) ................................ 153,425 7,198,701 Microsoft Corp. (a) ............................. 946,400 48,928,880 Oracle Corp. (a) ................................ 691,350 7,466,580 SAP AG, ADR ..................................... 369,600 7,207,200 Siebel Systems, Inc. (a) ........................ 954,300 7,138,164 ------------- 83,172,840 ------------- Total Common Stocks (Cost of $781,068,695) ........................ 823,226,685 ------------- Preferred Stock (1.3%) Consumer Discretionary (1.3%) Media (1.3%) News Corp., Ltd., ADR (Cost of $10,501,308 ) ........................ 459,975 10,418,434 ------------- Short-Term Obligation (0.0%) Par Repurchase agreement with State Street Bank & Trust Co., dated 12/31/02, due 01/02/03 at 1.050%, collateralized by a U.S. Treasury Note maturing 02/29/04, market value $272,938 (repurchase proceeds $265,015) (Cost of $265,000) ............................ $ 265,000 265,000 ------------- Total Investments (100.6%) (Cost of $791,835,003)(c) ..................... 833,910,119 ------------- Other Assets & Liabilities, Net (-0.6%) ............. (5,263,005) ------------- Net Assets (100.0%) ................................. $ 828,647,114 ============= Notes to Schedule of Investments: (a) Non-income producing. (b) This security is exempt from registration under Rule 144A of the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At December 31, 2002, the value of this security amounted to $8,944,500 which represents 1.1% of net assets. (c) Cost for federal income tax purposes is $835,314,645. Acronym Name ------- ---- ADR American Depositary Receipt GDR Global Depositary Receipt COLUMBIA INTERNATIONAL STOCK FUND DECEMBER 31, 2002 Shares Value - -------------------------------------------------------------------------------- Common Stocks (93.3%) Consumer Discretionary (16.2%) Automobiles (1.6%) Honda Motor Co., Ltd. ..................... 38,600 $1,427,943 Hyundai Motor Co., Ltd. (a) ............... 9,300 217,592 Toyota Motor Corp. ........................ 42,900 1,153,206 ---------- 2,798,741 ---------- Hotels, Restaurants & Leisure (0.5%) Nissin Healthcare Food Service Co., Ltd. ............................... 48,000 873,683 ---------- Household Durables (3.1%) Koninklijke (Royal) Philips Electronics NV (a) ...................... 51,200 897,230 Land and Houses Public Co., Ltd. .......... 993,800 1,833,111 Pioneer Corp. ............................. 25,000 468,737 Sony Corp. ................................ 38,000 1,588,269 Srithai Superware Public Co., Ltd. (a) ................................ 3,500,000 637,471 ---------- 5,424,818 ---------- Media (2.3%) BEC World Public Co., Ltd. ................ 144,500 683,944 British Sky Broadcasting Group PLC (a) ................................. 100,000 1,028,725 JC Decaux SA (a) .......................... 56,000 675,776 VNU NV (a) ................................ 63,900 1,666,266 ---------- 4,054,711 ---------- Multi-Line Retail (5.1%) Aeon Co., Ltd. ............................ 73,000 1,728,574 Marks & Spencer Group PLC ................. 90,924 461,092 Marui Co., Ltd. ........................... 53,000 518,968 Next PLC .................................. 123,958 1,469,758 Shinsegae Co., Ltd. (a) ................... 15,430 1,944,931 Wal-Mart de Mexico SA de CV, Class V ................................. 1,231,000 2,799,865 ---------- 8,923,188 ---------- See Accompanying Notes to Financial Statements 76 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- Shares Value - -------------------------------------------------------------------------------- Specialty Retail (2.9%) Big C Supercenter Public Co., Ltd., NVDR (a) ........................... 2,815,000 $ 1,077,668 Don Quijote Co., Ltd. ...................... 7,300 669,899 Industria de Diseno Textil SA .............. 60,700 1,433,776 Shimamura Co., Ltd. ........................ 24,000 1,528,945 Yamada Denki Co., Ltd. ..................... 20,200 426,401 ----------- 5,136,689 ----------- Textiles, Apparel & Luxury Goods (0.7%) Puma AG .................................... 16,400 1,119,115 ----------- Consumer Staples (12.7%) Beverages (2.7%) Diageo PLC ................................. 194,198 2,110,314 Foster's Group Ltd. ........................ 626,577 1,587,712 Heineken NV (a) ............................ 24,520 957,151 ----------- 4,655,177 ----------- Food & Drug Retailing (1.6%) Carrefour SA (a) ........................... 21,300 948,352 Seven-Eleven Japan Co., Ltd. ............... 62,000 1,891,295 ----------- 2,839,647 ----------- Food Products (3.2%) Nestle SA, Registered Shares ............... 15,056 3,190,442 Unilever NV, CVA (a) ....................... 19,700 1,210,348 Unilever PLC ............................... 120,237 1,143,995 ----------- 5,544,785 ----------- Household Products (2.3%) Kao Corp. .................................. 88,000 1,931,743 Reckitt Benckiser PLC ...................... 110,960 2,152,544 ----------- 4,084,287 ----------- Personal Products (1.9%) L'Oreal SA (a) ............................. 24,720 1,881,928 Pacific Corp. .............................. 17,410 1,511,935 ----------- 3,393,863 ----------- Tobacco (1.0%) Imperial Tobacco Group PLC ................. 105,800 1,796,953 ----------- Energy (3.0%) Oil & Gas (3.0%) BP PLC ..................................... 110,318 758,356 BP PLC, ADR ................................ 47,500 1,930,875 ENI S.p.A .................................. 97,450 1,549,215 Total Fina Elf SA .......................... 7,629 1,089,539 ----------- 5,327,985 ----------- Financials (13.6%) Banks (12.1%) Anglo Irish Bank Corp. PLC ................. 90,700 645,289 Banco Popular Espanol SA ................... 48,375 1,978,192 Bank of Ireland ............................ 160,307 1,646,843 Barclays PLC ............................... 223,656 1,386,245 Danske Bank A/S ............................ 87,100 1,439,704 Fortis Bank Nederland Holding NV (a) ................................... 4,100 -- Grupo Financiero BBVA Bancomer, SA de CV (a) ............................. 1,696,300 1,282,275 Kookmin Bank (a) ........................... 65,580 2,322,297 Royal Bank of Scotland Group PLC ................................ 145,471 3,484,801 Siam Commercial Bank Public Co., Ltd. (a) ............................ 519,000 346,201 Standard Chartered Ltd. .................... 198,922 2,260,925 UBS AG, Registered Shares .................. 33,900 1,647,565 UniCredito Italiano S.p.A .................. 680,200 2,719,439 ----------- 21,159,776 ----------- Insurance (1.5%) Irish Life & Permanent PLC ................. 100,300 1,081,868 Legal & General Group PLC .................. 993,058 1,534,774 ----------- 2,616,642 ----------- Health Care (14.2%) Biotechnology (0.6%) CSL Ltd. ................................... 88,300 1,073,987 ----------- Health Care Equipment & Supplies (2.9%) Olympus Optical Co., Ltd. .................. 62,000 1,010,432 ResMed, Inc. (a) ........................... 24,500 748,965 Smith & Nephew PLC ......................... 534,010 3,271,167 ----------- 5,030,564 ----------- Pharmaceuticals (10.7%) Aventis SA (a) ............................. 31,840 1,730,693 Dr. Reddy's Laboratories Ltd., ADR ......... 58,000 1,121,140 GlaxoSmithKline PLC ........................ 177,126 3,399,047 Novartis AG ................................ 63,590 2,320,190 Ranbaxy Laboratories Ltd. .................. 77,000 977,900 Roche Holding AG ........................... 7,296 508,405 Sanofi-Synthelabo SA (a) ................... 45,464 2,778,950 Schering AG (a) ............................ 36,400 1,583,226 Takeda Chemical Industries Ltd. ............ 52,000 2,173,421 Teva Pharmaceutical Industries Ltd ...................................... 54,000 2,084,940 ----------- 18,677,912 ----------- See Accompanying Notes to Financial Statements 77 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA INTERNATIONAL STOCK FUND (CONT.) DECEMBER 31, 2002 Shares Value - -------------------------------------------------------------------------------- Industrials (9.1%) Air Freight & Logistics (0.5%) Exel PLC ...................................... 81,600 $ 903,810 ---------- Commercial Services & Supplies (2.4%) Amadeus Global Travel Distribution SA ............................. 365,600 1,507,703 Capita Group PLC .............................. 349,975 1,394,475 Secom Co., Ltd. ............................... 38,000 1,303,278 ---------- 4,205,456 ---------- Electrical Equipment (0.7%) Schneider Electric SA ......................... 24,800 1,173,408 ---------- Industrial Conglomerates (2.1%) Hutchison Whampoa Ltd. ........................ 283,950 1,776,878 Smiths Group PLC .............................. 82,900 928,219 Wesfarmers Ltd. ............................... 72,550 1,086,685 ---------- 3,791,782 ---------- Machinery (0.6%) SMC Corp. ..................................... 11,000 1,032,611 ---------- Transportation Infrastructure (2.8%) Acesa Infraestructuras, SA (a) ................ 157,449 1,784,353 BAA PLC ....................................... 220,679 1,790,565 Cosco Pacific Ltd. ............................ 994,000 815,760 Zhejiang Expressway Co., Ltd., Class H ..................................... 1,200,000 461,635 ---------- 4,852,313 ---------- Information Technology (7.6%) Communications Equipment (0.8%) Nokia Oyj (a) ................................. 17,900 284,566 Nokia Oyj, ADR ................................ 74,600 1,156,300 ---------- 1,440,866 ---------- Computers & Peripherals (0.1%) Legend Group Ltd. ............................. 722,000 238,402 ---------- Electronic Equipment & Instruments (1.4%) Hoya Corp. .................................... 5,600 392,146 Keyence Corp. ................................. 9,600 1,670,514 Murata Manufacturing Co., Ltd. ................ 7,100 278,208 ---------- 2,340,868 ---------- Office Electronics (1.9%) Canon, Inc. ................................... 89,000 3,352,405 ---------- Semiconductor Equipment & Products (3.4%) Rohm Co., Ltd. ................................ 25,600 3,259,593 Samsung Electronics Co., Ltd. ................. 9,000 2,382,699 Samsung Electronics Co., Ltd., GDR (b) ..................................... 1,800 240,300 ---------- 5,882,592 ---------- Materials (9.3%) Chemicals (2.4%) Givaudan SA ................................... 4,329 1,941,122 L'Air Liquide SA .............................. 7,719 1,018,154 Shin-Etsu Chemical Co., Ltd. .................. 37,000 1,212,859 ---------- 4,172,135 ---------- Construction Materials (1.4%) Siam Cement Co., NVDR ......................... 77,150 2,097,907 Tipco Asphalt Public Co., Ltd. (a) ............ 556,000 307,025 ---------- 2,404,932 ---------- Containers & Packaging (1.1%) Amcor Ltd. .................................... 395,100 1,888,858 ---------- Metals & Mining (2.2%) BHP Billiton Ltd. ............................. 302,500 1,728,925 Rio Tinto PLC ................................. 112,500 2,245,809 ---------- 3,974,734 ---------- Paper & Forest Products (2.2%) Stora Enso Oyj, Class R ....................... 84,000 885,855 Svenska Cellulosa AB, Class B ................. 35,700 1,204,567 UPM-Kymmene Oyj ............................... 56,200 1,804,575 ---------- 3,894,997 ---------- Telecommunication Services (4.1%) Diversified Telecommunication Services (1.4%) Telefonica SA (a) ............................. 267,770 2,396,779 ---------- Wireless Telecommunication Services (2.7%) NTT DoCoMo, Inc. .............................. 678 1,251,217 Orange SA (a) ................................. 144,900 1,002,007 Vodafone Group PLC ............................ 1,384,129 2,523,559 ---------- 4,776,783 ---------- Utilities (3.5%) Electric Utilities (1.8%) Huaneng Power International, Inc., Class H ............................... 1,664,000 1,333,612 National Grid Transco PLC ..................... 240,536 1,767,744 ---------- 3,101,356 ---------- See Accompanying Notes to Financial Statements 78 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- Shares Value - -------------------------------------------------------------------------------- Gas Utilities (1.7%) Centrica PLC .......................... 557,900 $ 1,535,858 Hong Kong and China Gas Co., Ltd ................................. 1,137,540 1,465,982 ------------ 3,001,840 ------------ Total Common Stocks (Cost of $167,572,990) .............. 163,359,450 ------------ Investment Management Fund (0.1%) Thai Fund, Inc. (Cost of$ 153,085) .................. 37,100 129,108 ------------ Rights (0.1%) (a) ......................... Units Industrials (0.1%) Transportation Infrastructure (0.1%) Acesa Infraestructuras, SA Expires 01/11/03 (Cost of $0) ........................ 157,449 90,870 ------------ Warrants (0.0%) (a) Financials (0.0%) Banks (0.0%) Siam Commercial Bank Public Co., Ltd. Expires 06/22/04 (Cost of $0) ........................ 36,666 2,399 ------------ Short-Term Obligation (5.9%) Par Repurchase agreement with State Street Bank & Trust Co., dated 12/31/02, due 01/02/03 at 1.050% collateralized by a U.S. Treasury Inflation Index Bond maturing 01/15/09, market value of $10,623,113 (repurchase proceeds $10,411,607) (Cost of $10,411,000) ............... $10,411,000 10,411,000 ------------ Total Investments (99.4%) (Cost of $178,137,075)(c) ........... 173,992,827 ------------ Other Assets & Liabilities, Net (0.6%) .... 980,147 ------------ Net Assets (100.0%) ....................... $174,972,974 ============ Notes to Schedule of Investments: (a) Non-income producing. (b) This security is exempt from registration under Rule 144A of the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At December 31, 2002, the value of this security amounted to $240,300 which represents 0.1% of net assets. (c) Cost for federal income tax purposes is $179,073,688. Summary of Securities % of Total by Country (Unaudited) Value Investments - -------------------------------------------------------------------------------- United Kingdom .................. $41,279,614 23.7% Japan ........................... 31,144,347 17.9 France .......................... 12,298,807 7.1 United States* .................. 11,289,073 6.5 Switzerland ..................... 9,607,724 5.5 Spain ........................... 9,191,673 5.3 South Korea ..................... 8,619,754 5.0 Australia ....................... 7,366,167 4.2 Thailand ........................ 6,985,726 4.0 Netherlands ..................... 4,730,995 2.7 Italy ........................... 4,268,650 2.5 Finland ......................... 4,131,296 2.4 Mexico .......................... 4,082,140 2.3 Ireland ......................... 3,374,000 1.9 Hong Kong ....................... 3,242,860 1.9 China ........................... 2,849,409 1.6 Germany ......................... 2,702,341 1.6 India ........................... 2,099,040 1.2 Israel .......................... 2,084,940 1.2 Denmark ......................... 1,439,704 0.8 Sweden .......................... 1,204,567 0.7 ------------ ----- $173,992,827 100.0% ============ ===== * Includes Short-Term Obligation. Certain securities are listed by country of underlying exposure but may trade predominately on other exchanges. Acronym Name ------- ---- ADR American Depositary Receipt GDR Global Depositary Receipt NVDR Non-Voting Depositary Receipt COLUMBIA SPECIAL FUND DECEMBER 31, 2002 Shares Value - -------------------------------------------------------------------------------- Common Stocks (93.7%) Consumer Discretionary (20.3%) Auto Components (0.8%) Gentex Corp. (a) ........................... 196,800 $ 6,226,752 ----------- Hotels, Restaurants & Leisure (5.5%) Brinker International, Inc. (a) ............ 582,240 18,777,240 Harrahs Entertainment, Inc. (a) ............ 139,200 5,512,320 Outback Steakhouse, Inc. (a) ............... 212,050 7,303,002 P.F. Chang's China Bistro, Inc. (a) ........ 103,800 3,767,940 Starwood Hotels & Resorts Worldwide, Inc. .......................... 194,300 4,612,682 Yum! Brands, Inc. (a) ...................... 255,000 6,176,100 ----------- 46,149,284 ----------- See Accompanying Notes to Financial Statements 79 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA SPECIAL FUND (CONT.) DECEMBER 31, 2002 Shares Value - -------------------------------------------------------------------------------- Leisure Equipment & Products (0.4%) Mattel, Inc. .............................. 191,390 $ 3,665,118 ------------ Media (7.4%) Cox Radio, Inc., Class A (a) .............. 725,900 16,557,779 Hispanic Broadcasting Corp. (a) ........... 520,000 10,686,000 Knight Ridder, Inc. ....................... 199,150 12,596,237 Radio One, Inc., Class D (a) .............. 564,600 8,147,178 Univision Communications, Inc., Class A (a) ............................. 160,550 3,933,475 Westwood One, Inc. ........................ 276,700 10,337,512 ------------ 62,258,181 ------------ Multi-Line Retail (2.8%) Dollar Tree Stores, Inc. (a) .............. 342,040 8,403,923 Family Dollar Stores, Inc. ................ 330,600 10,318,026 Nordstrom, Inc. ........................... 247,550 4,696,023 ------------ 23,417,972 ------------ Specialty Retail (3.4%) Bed Bath & Beyond, Inc. (a) ............... 380,100 13,124,853 Limited Brands, Inc. ...................... 216,120 3,010,552 Talbots, Inc. ............................. 102,950 2,834,213 Williams Sonoma, Inc. (a) ................. 353,700 9,602,955 ------------ 28,572,573 ------------ Consumer Staples (1.1%) Food Products (0.2%) Dean Foods Co. (a) ........................ 41,500 1,539,650 ------------ Household Products (0.9%) Dial Corp. ................................ 385,530 7,853,246 ------------ Energy (9.0%) Energy Equipment & Services (5.6%) ENSCO International, Inc. ................. 220,650 6,498,142 Nabors Industries Ltd. (a) ................ 237,250 8,367,807 National-Oilwell, Inc. (a) ................ 334,500 7,305,480 Noble Corp. (a) ........................... 312,300 10,977,345 Patterson-UTI Energy, Inc. (a) ............ 240,150 7,245,325 Rowan Companies, Inc. ..................... 281,500 6,390,050 ------------ 46,784,149 ------------ Oil & Gas (3.4%) Apache Corp. .............................. 119,350 6,801,756 Ocean Energy, Inc. ........................ 217,250 4,338,482 Valero Energy Corp. ....................... 358,700 13,250,378 XTO Energy, Inc. .......................... 176,550 4,360,785 ------------ 28,751,401 ------------ Financials (7.1%) Banks (1.1%) Fifth Third Bancorp ....................... 41,500 2,429,825 M&T Bank Corp. ............................ 92,680 7,354,158 ------------ 9,783,983 ------------ Diversified Financials (1.8%) Moody's Corp. ............................. 365,350 15,085,301 ------------ Insurance (4.2%) Ambac Financial Group, Inc. ............... 188,700 10,612,488 Arthur J. Gallagher & Co. (a) ............. 204,150 5,997,927 Everest Re Group Ltd. ..................... 179,150 9,906,995 Stancorp Financial Group, Inc. ............ 174,550 8,526,767 ------------ 35,044,177 ------------ Health Care (27.0%) Biotechnology (1.7%) Gilead Sciences, Inc. (a) ................. 260,300 8,850,200 MedImmune, Inc. (a) ....................... 193,750 5,264,187 ------------ 14,114,387 ------------ Health Care Equipment & Supplies (2.6%) Biomet, Inc. .............................. 563,900 16,161,374 Boston Scientific Corp. (a) ............... 143,450 6,099,494 ------------ 22,260,868 ------------ Health Care Providers & Services (18.3%) AmerisourceBergen Corp. ................... 268,200 14,565,942 Anthem, Inc. (a) .......................... 231,350 14,551,915 Caremark Rx, Inc. (a) ..................... 1,565,750 25,443,437 Community Health Systems, Inc. (a) ................................ 331,080 6,816,937 DaVita, Inc. (a) .......................... 220,250 5,433,568 Express Scripts, Inc. (a) ................. 46,300 2,224,252 First Health Group Corp. (a) .............. 175,400 4,270,990 HCA, Inc. ................................. 718,550 29,819,825 Laboratory Corporation of American Holdings (a) ................... 126,850 2,947,994 Manor Care, Inc. (a) ...................... 230,850 4,296,119 UnitedHealth Group, Inc. .................. 93,700 7,823,950 Universal Health Services, Inc., Class B (a) ............................. 239,650 10,808,215 Wellpoint Health Networks, Inc. (a) ................................ 342,200 24,350,952 ------------ 153,354,096 ------------ Pharmaceuticals (4.4%) ANDRX Group (a) ........................... 358,500 5,259,195 Barr Laboratories, Inc. (a) ............... 211,850 13,789,317 King Pharmaceuticals, Inc. (a) ............ 489,600 8,416,224 Teva Pharmaceutical Industries Ltd., ADR ............................... 244,300 9,432,423 ------------ 36,897,159 ------------ See Accompanying Notes to Financial Statements 80 SCHEDULE OF INVESTMENTS - --------------------------------------------------------------------------------
Shares Value - -------------------------------------------------------------------------------------- Industrials (14.0%) Aerospace & Defense (0.6%) Raytheon Co. .................................... 156,950 $ 4,826,213 ------------- Air Freight & Logistics (0.3%) Expeditors International of Washington, Inc. .............................. 74,200 2,422,630 ------------- Commercial Services & Supplies (9.4%) Apollo Group, Inc., Class A (a) ................. 130,575 5,745,300 BISYS Group, Inc. (a) ........................... 752,150 11,959,185 ChoicePoint, Inc. (a) ........................... 272,390 10,756,681 Concord EFS, Inc. (a) ........................... 637,800 10,038,972 Corporate Executive Board Co. (a) ................................ 177,900 5,678,568 DST Systems, Inc. (a) ........................... 40,050 1,423,778 Education Management Corp. (a) .................. 150,500 5,658,800 Hewitt Associates, Inc., Class A (a) .................................. 102,736 3,255,704 Republic Services, Inc. (a) ..................... 176,410 3,701,082 Robert Half International, Inc. (a) ............. 482,700 7,776,297 Weight Watchers International, Inc. (a) ..................................... 273,875 12,590,034 ------------- 78,584,401 ------------- Electrical Equipment (0.5%) American Power Conversion Corp. (a) ..................................... 293,100 4,440,465 ------------- Machinery (1.0%) Danaher Corp. ................................... 43,000 2,825,100 Eaton Corp. ..................................... 74,500 5,819,195 ------------- 8,644,295 ------------- Road & Rail (0.7%) CSX Corp. ....................................... 191,200 5,412,872 ------------- Trading Companies & Distributors (1.5%) Fastenal Co. .................................... 46,700 1,746,113 W. W. Grainger, Inc. ............................ 214,810 11,073,456 ------------- 12,819,569 ------------- Information Technology (14.6%) Communications Equipment (0.6%) Tellabs, Inc. (a) ............................... 712,000 5,176,240 ------------- Electronic Equipment & Instruments (1.7%) Flextronics International Ltd. (a) .............. 491,250 4,023,338 Jabil Circuit, Inc. (a) ......................... 590,650 10,584,448 ------------- 14,607,786 ------------- Information Technology Consulting & Services (0.6%) SunGard Data Systems, Inc. (a) .................. 205,420 4,839,695 ------------- Semiconductor Equipment & Products (1.9%) Microchip Technology, Inc. ...................... 237,350 5,803,208 National Semiconductor Corp. (a) ................ 145,400 2,182,454 Novellus Systems, Inc. (a) ...................... 268,800 7,547,904 ------------- 15,533,566 ------------- Software (9.8%) Cadence Design Systems, Inc. (a) ................ 480,050 5,659,790 Electronic Arts, Inc. (a) ....................... 297,550 14,809,064 Intuit, Inc. (a) ................................ 519,425 24,371,421 Mercury Interactive Corp. (a) ................... 291,950 8,656,318 Rational Software Corp. (a) ..................... 426,050 4,426,660 Siebel Systems, Inc. (a) ........................ 1,852,600 13,857,448 Symantec Corp. (a) .............................. 94,350 3,822,119 VERITAS Software Corp. (a) ...................... 428,350 6,690,827 ------------- 82,293,647 ------------- Materials (0.6%) Chemicals (0.6%) Lyondell Chemical Co. ........................... 378,400 4,782,976 ------------- Total Common Stocks (Cost of $759,494,078) ........................ 786,142,652 ------------- Convertible Preferred Stock (0.0)% Network Specialists, Inc., Series A (a)(b)(c) (Cost of $3,000,000) .......................... 394,218 3,942 ------------- Short-Term Obligation (10.3%) Par Repurchase agreement with State Street Bank & Trust Co., dated 12/31/02, due 01/02/03 at 1.050%, collateralized by U.S. Treasury Notes with various maturities to 08/15/11, market value of $88,107,164 (repurchase proceeds $86,376,038) (Cost of $86,371,000) ......................... $86,371,000 86,371,000 ------------- Total Investments (104.0%) (Cost of $848,865,078)(d) ..................... 872,517,594 ------------- Other Assets & Liabilities, Net (-4.0%) ....................................... (33,459,898) ------------- Net Assets (100.0%) ................................. $ 839,057,696 =============
Notes to Schedule of Investments: (a) Non-income producing. (b) This security is exempt from registration under Rule 144A of the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At December 31, 2002, the value of this security amounted to $3,942 which represents less than 0.1% of net assets. (c) Represents fair value as determined in good faith under the direction of the Board of Directors. (d) Cost for federal income tax purposes is $853,933,529. Acronym Name ------- ---- ADR American Depositary Receipt See Accompanying Notes to Financial Statements 81 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA SMALL CAP FUND DECEMBER 31, 2002 Shares Value - -------------------------------------------------------------------------------- Common Stocks (94.8%) Consumer Discretionary (21.3%) Auto Components (1.6%) Autoliv, Inc. ................................ 197,200 $ 4,127,396 Gentex Corp. (a) ............................. 115,250 3,646,510 ----------- 7,773,906 ----------- Hotels, Restaurants & Leisure (4.2%) California Pizza Kitchen, Inc. (a) ........... 75,600 1,905,120 Cheesecake Factory, Inc. (a) ................. 86,000 3,108,900 Krispy Kreme Doughnuts, Inc. (a) ............. 103,500 3,495,195 Outback Steakhouse, Inc. ..................... 139,872 4,817,192 P.F. Chang's China Bistro, Inc. (a) .......... 109,500 3,974,850 Panera Bread Co., Class A (a) ................ 104,500 3,637,645 ----------- 20,938,902 ----------- Household Durables (1.8%) Harman International Industries, Inc ........................................ 152,000 9,044,000 ----------- Leisure Equipment & Products (0.5%) Oakley, Inc. (a) ............................. 255,000 2,618,850 ----------- Media (7.4%) Cumulus Media, Inc., Class A (a) ............. 220,000 3,271,400 Entercom Communications Corp. (a) .................................. 175,400 8,229,768 Entravision Communications Corp., Class A (a) ......................... 267,000 2,664,660 Lamar Advertising Co. (a) .................... 289,512 9,742,079 Lin TV Corp., Class A (a) .................... 132,650 3,230,028 Radio One, Inc., Class D (a) ................. 458,902 6,621,956 Scholastic Corp. (a) ......................... 79,600 2,861,620 ----------- 36,621,511 ----------- Specialty Retail (4.8%) Advanced Auto Parts, Inc. (a) ................ 51,400 2,513,460 Cost Plus, Inc. (a) .......................... 82,321 2,360,143 GameStop Corp. (a) ........................... 137,100 1,343,580 Hollywood Entertainment Corp. (a) .................................. 393,800 5,946,380 Lithia Motors, Inc., Class A (a) ............. 84,000 1,317,960 Michaels Stores, Inc. (a) .................... 139,375 4,362,438 O'Reilly Automotive, Inc. (a) ................ 137,192 3,469,586 Talbots, Inc. ................................ 80,699 2,221,643 ----------- 23,535,190 ----------- Textiles, Apparel & Luxury Goods (1.0%) Reebok International Ltd. (a) ................ 159,800 4,698,120 ----------- Energy (6.9%) Energy Equipment & Services (4.9%) Cal Dive International, Inc. (a) ............. 145,800 3,426,300 Global Industries Ltd. (a) ................... 172,938 721,151 Grey Wolf, Inc. (a) .......................... 509,800 2,034,102 National-Oilwell, Inc. (a) ................... 193,000 4,215,120 Oceaneering International, Inc. (a) ................................... 77,400 1,914,876 Patterson-UTI Energy, Inc. (a) ............... 86,300 2,603,671 Precision Drilling Corp. (a) ................. 146,800 4,776,872 Varco International, Inc. (a) ................ 250,000 4,350,000 ----------- 24,042,092 ----------- Oil & Gas (2.0%) Patina Oil & Gas Corp. ....................... 125,625 3,976,031 XTO Energy, Inc. ............................. 251,400 6,209,580 ----------- 10,185,611 ----------- Financials (5.7%) Diversified Financials (0.1%) Chicago Merchantile Exchange ................. 7,600 331,816 ----------- Insurance (3.9%) IPC Holdings Ltd. (a) ........................ 111,910 3,529,641 PartnerRe Ltd. ............................... 61,878 3,206,518 Platinum Underwriters Holdings Ltd. (a) ................................... 45,300 1,193,655 Scottish Annuity & Life Holdings Ltd ........................................ 332,700 5,805,615 Willis Group Holdings Ltd. (a) ............... 189,249 5,425,769 ----------- 19,161,198 ----------- Real Estate (1.7%) Health Care Property Investors, Inc ........................................ 75,542 2,893,259 Healthcare Realty Trust, Inc. ................ 189,900 5,554,575 ----------- 8,447,834 ----------- Health Care (23.5%) Biotechnology (1.9%) Neurocrine Biosciences, Inc. (a) ............. 200,455 9,152,775 ----------- Health Care Equipment & Supplies (4.3%) American Medical Systems Holdings, Inc. (a) ......................... 236,848 3,839,306 CTI Molecular Imaging, Inc. (a) .............. 79,700 1,965,402 Integra LifeSciences Holdings (a) ............ 72,575 1,280,949 Kyphon, Inc. (a) ............................. 149,700 1,278,438 Orthofix International NV (a) ................ 98,500 2,762,925 Wilson Greatbatch Technologies, Inc. (a) ................................... 190,110 5,551,212 Wright Medical Group, Inc. (a) ............... 257,000 4,486,963 ----------- 21,165,195 ----------- See Accompanying Notes to Financial Statements 82 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- Shares Value - -------------------------------------------------------------------------------- Health Care Providers & Services (12.3%) Caremark Rx, Inc. (a) ............................ 894,522 $14,535,982 Community Health Systems, Inc. (a) ....................................... 183,900 3,786,501 Covance, Inc. .................................... 111,800 2,749,162 DaVita, Inc. (a) ................................. 419,531 10,349,830 Express Scripts, Inc., Class A (a) ............... 26,240 1,260,570 First Health Group Corp. (a) ..................... 538,456 13,111,404 Henry Schein, Inc. (a) ........................... 119,851 5,393,295 Manor Care, Inc. (a) ............................. 267,900 4,985,619 Mid Atlantic Medical Services, Inc. (a) ....................................... 134,600 4,361,040 VistaCare, Inc., Class A (a) ..................... 19,800 316,998 ----------- 60,850,401 ----------- Pharmaceuticals (5.0%) ANDRX Corp. (a) .................................. 379,800 5,571,666 Medicis Pharmaceutical Corp., Class A (a) .................................... 57,930 2,877,383 NPS Pharmaceuticals, Inc. (a) .................... 110,400 2,778,768 Pharmaceutical Resources, Inc. (a) ....................................... 224,171 6,680,296 Trimeris, Inc. (a) ............................... 156,300 6,734,967 ----------- 24,643,080 ----------- Industrials (16.0%) Air Freight & Logistics (0.6%) J.B. Hunt Transport Services, Inc. (a) ....................................... 106,200 3,111,660 ----------- Commercial Services & Supplies (10.0%) BISYS Group, Inc. (a) ............................ 211,700 3,366,030 Career Education Corp. (a) ....................... 100,570 4,022,800 Corinthian Colleges, Inc. (a) .................... 148,900 5,637,354 Corporate Executive Board Co. (a) .................................. 223,260 7,126,459 Education Management Corp. (a) ...................................... 243,571 9,158,270 Global Payments, Inc. ............................ 114,636 3,669,498 Resources Connection, Inc. (a) ................... 210,800 4,892,668 Stericycle, Inc. (a) ............................. 137,596 4,455,221 Sylvan Learning Systems, Inc. (a) ................ 440,101 7,217,656 ----------- 49,545,956 ----------- Construction & Engineering (3.1%) Chicago Bridge & Iron Co, NY Shares (a) .................................. 132,500 4,001,500 Jacobs Engineering Group, Inc. (a) ............... 225,408 9,092,525 URS Corp. (a) .................................... 157,690 2,243,929 ----------- 15,337,954 Machinery (0.9%) Albany International Corp., Class A ........................................ 127,700 2,638,282 Flowserve Corp. (a) .............................. 106,600 1,576,614 ----------- 4,214,896 ----------- Road & Rail (1.4%) Landstar System, Inc. (a) ........................ 52,700 3,075,572 Yellow Corp. (a) ................................. 145,480 3,664,787 ----------- 6,740,359 ----------- Information Technology (19.1%) Communications Equipment (3.3%) Advanced Fibre Communications, Inc. (a) ....................................... 247,400 4,126,632 Avocent Corp. (a) ................................ 213,400 4,741,748 CIENA Corp. (a) .................................. 826,300 4,247,182 F5 Networks, Inc. (a) ............................ 145,700 1,564,818 Foundry Networks, Inc. (a) ....................... 214,510 1,510,150 ----------- 16,190,530 ----------- Computers & Peripherals (0.8%) Electronics for Imaging, Inc. (a) ................ 230,720 3,751,738 ----------- Electronic Equipment & Instruments (3.8%) Amphenol Corp., Class A (a) ...................... 330,855 12,572,490 Electro Scientific Industries, Inc. (a) ........................... 106,200 2,124,000 Photon Dynamics, Inc. (a) ........................ 169,604 3,866,971 ----------- 18,563,461 ----------- Information Technology Consulting & Services (1.7%) Acxiom Corp. (a) ................................. 372,800 5,733,664 Cognizant Technology Solutions Corp. (a) ...................................... 35,200 2,542,496 ----------- 8,276,160 ----------- Semiconductor Equipment & Products (1.9%) Credence Systems Corp. (a) ....................... 185,095 1,726,936 Genesis Microchip, Inc. (a) ...................... 57,400 749,070 Integrated Circuit Systems, Inc. (a) .............................. 133,900 2,443,675 Lattice Semiconductor Corp. (a) .................. 129,300 1,133,961 Photronics, Inc. (a) ............................. 128,886 1,765,738 TriQuint Semiconductor, Inc. (a) ................ 395,400 1,676,496 ----------- 9,495,876 ----------- See Accompanying Notes to Financial Statements 83 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA SMALL CAP FUND (CONT.) DECEMBER 31, 2002 Shares Value - -------------------------------------------------------------------------------- Software (7.6%) Citrix Systems, Inc. .................... 301,300 $ 3,712,016 Documentum, Inc. (a) .................... 210,331 3,293,783 Fair, Isaac and Co., Inc. ............... 216,100 9,227,470 J.D. Edwards & Co. (a) .................. 149,900 1,690,872 Magma Design Automation, Inc. (a) .............................. 257,200 2,463,976 Mercury Interactive Corp. (a) ........... 92,400 2,739,660 National Instruments Corp. (a) .......... 95,960 3,117,740 NetIQ Corp. (a) ......................... 88,752 1,096,087 Precise Software Solutions Ltd. (a) .............................. 227,864 3,762,035 Rational Software Corp. (a) ............. 219,000 2,275,410 Verity, Inc. (a) ........................ 319,300 4,275,746 ------------ 37,654,795 ------------ Materials (2.3%) Chemicals (1.5%) Minerals Technologies, Inc. ............. 105,600 4,556,640 Spartech Corp. .......................... 133,400 2,752,042 ------------ 7,308,682 ------------ Containers & Packaging (0.2%) Constar International, Inc. (a) ......... 64,250 754,938 ------------ Paper & Forest Products (0.6%) Louisiana-Pacific Corp. (a) ............. 400,600 3,228,836 ------------ Total Common Stocks (Cost of $445,547,368) ................ 467,386,322 ------------ Short-Term Obligation (5.0%) Par Repurchase agreement with State Street Bank & Trust Co., dated 12/31/02, due 01/02/03 at 1.050%, collateralized by a U.S. Treasury Note maturing 02/15/10, market value of $25,085,700 (repurchase proceeds $24,594,435) (Cost of $24,593,000) ................. $24,593,000 24,593,000 ------------ Total Investments (99.8%) (Cost of $470,140,368) (b) ............ 491,979,322 ------------ Other Assets & Liabilities, Net (0.2%) ...... 1,051,746 ------------ Net Assets (100.0%) ......................... $493,031,068 ============ Notes to Schedule of Investments: (a) Non-income producing. (b) Cost for federal income tax purposes is $473,607,344. COLUMBIA REAL ESTATE EQUITY FUND DECEMBER 31, 2002 Shares Value - -------------------------------------------------------------------------------- Common Stocks (93.2%) Consumer Discretionary (7.0%) Hotels, Restaurants & Leisure (7.0%) Hilton Hotels Corp. ....................... 2,145,200 $ 27,265,492 Starwood Hotels & Resorts Worldwide, Inc. ......................... 1,126,900 26,752,606 ------------ 54,018,098 ------------ Financials (77.4%) Real Estate (77.4%) Alexandria Real Estate Equities, Inc ..................................... 603,500 25,709,100 Apartment Investment & Management Co., Class A ................. 619,700 23,226,356 Archstone-Smith Trust ..................... 644,771 15,177,909 AvalonBay Communities, Inc. ............... 476,400 18,646,296 Boston Properties, Inc. ................... 473,900 17,467,954 CarrAmerica Realty Corp. .................. 569,500 14,265,975 Catellus Development Corp. (a) ............ 821,200 16,300,820 Centerpoint Properties Trust .............. 257,300 14,704,695 Chelsea Property Group, Inc. .............. 325,400 10,839,074 Cousins Properties, Inc. .................. 1,575,150 38,906,205 Equity Office Properties Trust ............ 1,036,237 25,885,200 Equity Residential ........................ 608,506 14,957,077 First Industrial Realty Trust, Inc. ....... 150,600 4,216,800 General Growth Properties, Inc. ........... 941,600 48,963,200 Host Marriott Corp. (a) ................... 1,361,600 12,050,160 iStar Financial, Inc. ..................... 1,545,750 43,358,288 Kimco Realty Corp. ........................ 746,600 22,875,824 Liberty Property Trust .................... 390,300 12,466,182 Macerich Co. .............................. 291,800 8,972,850 Newcastle Investment Corp. ................ 933,600 14,909,592 Pan Pacific Retail Properties, Inc. ....... 287,800 10,513,334 Prentiss Properties Trust ................. 260,700 7,372,596 ProLogis Trust ............................ 1,372,406 34,516,011 Public Storage, Inc. ...................... 490,032 15,832,934 Reckson Associates Realty Corp. ........... 488,900 10,291,345 Rouse Co. ................................. 871,300 27,620,210 Simon Property Group, Inc. ................ 825,656 28,130,100 St. Joe Co. ............................... 828,300 24,849,000 Taubman Centers, Inc. ..................... 443,400 7,196,382 United Dominion Realty Trust, Inc. ............................. 718,000 11,746,480 Vornado Realty Trust ...................... 531,100 19,756,920 ------------ 601,724,869 ------------ See Accompanying Notes to Financial Statements 84 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- Shares Value - -------------------------------------------------------------------------------- Materials (8.8%) Paper & Forest Products (8.8%) Bowater, Inc. .............................. 642,500 $ 26,952,875 Georgia-Pacific Corp. ...................... 960,200 15,516,832 International Paper Co. .................... 743,900 26,014,183 ------------ 68,483,890 ------------ Total Common Stocks (Cost of $664,012,869) ................... 724,226,857 ------------ Short-Term Obligation (3.2%) Par Repurchase agreement with State Street Bank & Trust Co., dated 12/31/02, due 01/02/03 at 1.050%, collateralized by a U.S. Treasury Note maturing 08/15/11, market value of $25,159,870 (repurchase proceeds $24,663,439) (Cost of $24,662,000) .................... $24,662,000 24,662,000 ------------ Total Investments (96.4%) (Cost of $688,674,869) (b) ................. 748,888,857 ------------ Other Assets & Liabilities, Net (3.6%) ................................... 28,101,651 ------------ Net Assets (100.0%) ............................ $776,990,508 ============ Notes to Schedule of Investments: (a) Non-income producing. (b) Cost for federal income tax purposes is $684,172,516. COLUMBIA TECHNOLOGY FUND DECEMBER 31, 2002 Shares Value - -------------------------------------------------------------------------------- Common Stocks (98.5%) Consumer Discretionary (9.4%) Computer & Electronics Retail (4.4%) GameStop Corp. (a) ................................... 5,000 $ 49,000 Hollywood Entertainment Corp. (a) .......................................... 20,500 309,550 -------- 358,550 -------- Consumer Electronics (1.8%) Garmin Ltd. (a) ...................................... 5,000 146,500 -------- Internet & Catalog Retail (0.7%) Alloy, Inc. (a) ...................................... 5,000 54,750 -------- Media (2.5%) Crown Media Holdings, Inc., Class A (a) ........................................ 70,000 161,120 TiVo, Inc. (a) ....................................... 8,000 41,840 -------- 202,960 -------- Health Care (3.9%) Biotechnology (3.3%) Biogen, Inc. (a) ..................................... 2,000 80,120 MedImmune, Inc. (a) .................................. 2,000 54,340 Neurocrine Biosciences, Inc. (a) ..................... 1,700 77,622 United Therapeutics Corp. (a) ........................ 3,000 50,100 -------- 262,182 -------- Health Care Equipment & Supplies (0.6%) Varian Medical Systems, Inc. (a) ..................... 1,000 49,600 -------- Industrials (5.4%) Aerospace & Defense (5.4%) Aeroflex, Inc. (a) ................................... 10,000 69,000 Lockheed Martin Corp. ................................ 5,000 288,750 Northrop Grumman Corp. ............................... 800 77,600 -------- 435,350 -------- Information Technology (69.8%) Communications Equipment (9.1%) ADC Telecommunications, Inc. (a) ........................................... 38,000 79,420 ADTRAN, Inc. (a) ..................................... 6,000 197,400 Alcatel SA, ADR ...................................... 9,000 39,960 Nokia Oyj, ADR ....................................... 7,500 116,250 QUALCOMM, Inc. (a) ................................... 2,000 72,780 Tekelec (a) .......................................... 8,600 89,870 UTStarcom, Inc. (a) .................................. 4,700 93,201 Wavecom SA, ADR (a) .................................. 3,300 46,695 -------- 735,576 -------- Computers & Peripherals (5.1%) Hewlett-Packard Co. .................................. 17,300 300,328 Imation Corp. (a) .................................... 2,000 70,160 International Business Machines Corp ............................................... 500 38,750 -------- 409,238 -------- Information Technology Consulting & Services (9.8%) Acxiom Corp. (a) ..................................... 9,000 138,420 Affiliated Computer Services, Inc., Class A (a) ........................................ 1,500 78,975 BISYS Group, Inc. (a) ................................ 2,000 31,800 Computer Sciences Corp. (a) .......................... 2,500 86,125 Concord EFS, Inc. (a) ................................ 5,000 78,700 DST Systems, Inc. (a) ................................ 2,500 88,875 First Data Corp. ..................................... 4,500 159,345 Global Payments, Inc. ................................ 4,000 128,040 -------- 790,280 -------- See Accompanying Notes to Financial Statements 85 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA TECHNOLOGY FUND (CONT.) DECEMBER 31, 2002 Shares Value - -------------------------------------------------------------------------------- Internet Software & Services (0.7%) SINA.com (a) ...................................... 8,800 $ 57,200 ---------- Networking Equipment (1.2%) Emulex Corp. (a) .................................. 5,000 92,750 ---------- Semiconductor Equipment & Products (12.5%) Entegris, Inc. (a) ................................ 5,000 51,500 Mykrolis Corp. (a) ................................ 25,000 182,500 PDF Solutions, Inc. (a) ........................... 5,500 38,115 PMC-Sierra, Inc. (a) .............................. 85,000 472,600 Samsung Electronics Co., Ltd., GDR (b) ......................................... 2,000 267,000 ---------- 1,011,715 ---------- Semiconductors (11.1%) Intersil Corp., Class A (a) ....................... 18,000 250,920 Microchip Technology, Inc. ........................ 10,300 251,835 Micron Technology, Inc. (a) ....................... 8,000 77,920 RF Micro Devices, Inc. (a) ........................ 30,000 219,900 STMicroelectronics NV, ADR ........................ 4,700 91,697 ---------- 892,272 ---------- Software (20.3%) Autodesk, Inc. .................................... 6,000 85,800 BEA Systems, Inc. (a) ............................. 10,000 114,700 BMC Software, Inc. (a) ............................ 12,000 205,320 Citrix Systems, Inc. (a) .......................... 7,000 86,240 Documentum, Inc. (a) .............................. 4,150 64,989 Electronic Arts, Inc. (a) ......................... 1,500 74,655 Intuit, Inc. (a) .................................. 3,500 164,220 Legato Systems, Inc. (a) .......................... 10,000 50,300 Mercury Interactive Corp. (a) ..................... 4,000 118,600 Microsoft Corp. (a) ............................... 4,860 251,262 Network Associates, Inc. (a) ...................... 5,000 80,450 Novell, Inc. (a) .................................. 13,000 43,420 Oracle Corp. (a) .................................. 4,000 43,200 Quest Software, Inc. (a) .......................... 9,000 92,790 SAP AG, ADR ....................................... 3,500 68,250 VERITAS Software Corp. (a) ........................ 6,000 93,720 ---------- 1,637,916 ---------- Materials (2.2%) Containers & Packaging (2.2%) Constar International, Inc. (a) ................... 15,000 176,250 ---------- Telecommunication Services (7.8%) Diversified Telecommunication Services (2.5%) Telefonaktiebolaget LM Ericsson, ADR (a) ......................................... 30,100 202,874 ---------- Wireless Telecommunication Services (5.3%) American Tower Corp, Class A (a) ................. 2,500 8,825 AT&T Wireless Services, Inc. (a) ................. 47,000 265,550 Crown Castle International Corp. (a) ....................................... 4,000 15,000 Mobile Telesystems, ADR ........................... 2,500 92,850 VimpelCom (a) ..................................... 1,500 48,015 ---------- 430,240 ---------- Total Investments (98.5%) (Cost of $7,553,470) (c) ........................ 7,946,203 ---------- Other Assets & Liabilities, Net (1.5%) ................ 117,317 ---------- Net Assets (100.0%) ................................... $8,063,520 ========== Notes to Schedule of Investments: (a) Non-income producing. (b) This security is exempt from registration under Rule 144A of the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At December 31, 2002, the value of this security amounted to $267,000 which represents 3.3% of net assets. (c) Cost for federal income tax purposes is $7,775,785. Acronym Name ------- ---- ADR American Depositary Receipt GDR Global Depositary Receipt COLUMBIA STRATEGIC VALUE FUND DECEMBER 31, 2002 Shares Value - -------------------------------------------------------------------------------- Common Stocks (87.7%) Consumer Discretionary (12.2%) Auto Components (1.9%) Modine Manufacturing Co. .................... 125,000 $2,210,000 Nokian Renkaat Oyj .......................... 75,000 2,675,036 ---------- 4,885,036 ---------- Automobiles (0.6%) Ford Motor Co. .............................. 50,000 465,000 Hyundai Motor Co., Ltd., GDR (a)(b) ................................ 85,000 1,020,000 ---------- 1,485,000 ---------- Hotels, Restaurants & Leisure (0.4%) Hilton Hotels Corp. ......................... 82,500 1,048,575 ---------- See Accompanying Notes to Financial Statements 86 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- Shares Value - -------------------------------------------------------------------------------- Household Durables (1.0%) Ekornes ASA .................................. 125,000 $ 1,515,642 Newell Rubbermaid, Inc. ...................... 40,000 1,213,200 ----------- 2,728,842 ----------- Leisure Equipment & Products (0.5%) Hasbro, Inc. ................................. 120,000 1,386,000 ----------- Media (3.1%) AOL Time Warner, Inc. (a) .................... 175,000 2,292,500 Emmis Communications Corp., Class A (a) ................................ 30,000 624,900 General Motors Corp., Class H (a) ............ 125,000 1,337,500 Martha Stewart Living Omnimedia, Inc., Class A (a) .......................... 40,000 394,800 Media General, Inc., Class A ................. 40,000 2,398,000 Metro-Goldwyn-Mayer, Inc. (a) ................ 42,500 552,500 Reader's Digest Association, Inc. ............ 50,000 755,000 ----------- 8,355,200 ----------- Multi-Line Retail (2.0%) Dillard's, Inc., Class A ..................... 100,000 1,586,000 Dollar General Corp. ......................... 87,500 1,045,625 Sears, Roebuck & Co. ......................... 30,000 718,500 Stockmann Oyj, Class A ....................... 50,000 724,046 Target Corp. ................................. 40,000 1,195,548 ----------- 5,269,719 ----------- Specialty Retail (2.3%) Borders Group, Inc. (a) ...................... 40,000 644,000 CarMax, Inc. (a) ............................. 50,000 894,000 Circuit City Stores, Inc. .................... 87,500 649,250 Friedman's Inc., Class A ..................... 150,000 1,302,000 Home Depot, Inc. ............................. 62,500 1,497,500 Talbots, Inc. ................................ 40,000 1,101,200 ----------- 6,087,950 ----------- Textiles, Apparel & Luxury Goods (0.4%) Liz Claiborne, Inc. .......................... 36,000 1,067,400 ----------- Consumer Staples (6.0%) Beverages (0.1%) Panamerican Beverages, Inc., Class A .................................... 10,000 207,800 ----------- Food & Drug Retailing (1.6%) Longs Drug Stores Corp. ...................... 75,000 1,555,500 Potash Corp. of Saskatchewan, Inc. ......................... 30,000 1,907,700 United Natural Foods, Inc. (a) ............... 35,000 887,250 ----------- 4,350,450 ----------- Food Products (3.2%) Archer-Daniels-Midland Co. ................... 75,000 930,000 Chiquita Brands International, Inc. (a) .................... 100,000 1,326,000 Del Monte Foods Co. (a) ...................... 500 3,850 Delta and Pine Land Co. ...................... 40,000 816,400 Hain Celestial Group, Inc. (a) ............... 50,000 760,000 H.J. Heinz Co. ............................... 20,000 657,400 Unilever NV, NY Shares ....................... 52,500 3,239,775 Wimm-Bill-Dann Foods, ADR (a) ................ 40,000 718,000 ----------- 8,451,425 ----------- Personal Products (0.7%) Estee Lauder Companies., Inc., Class A .................................... 67,500 1,782,000 ----------- Tobacco (0.4%) Philip Morris Companies, Inc. ................ 30,600 1,240,218 ----------- Energy (9.3%) Energy Equipment & Services (3.5%) FMC Technologies, Inc. (a) ................... 75,000 1,532,250 Halliburton Co. .............................. 100,000 1,871,000 Hanover Compressor Co. (a) ................... 70,000 642,600 Newpark Resources, Inc. (a) .................. 100,000 435,000 Rowan Companies, Inc. ........................ 30,000 681,000 Schlumberger Ltd. ............................ 40,000 1,683,600 Universal Compression Holdings, Inc. (a) ................................... 100,000 1,913,000 Varco International, Inc. (a) ................ 30,000 522,000 ----------- 9,280,450 ----------- Oil & Gas (5.8%) Anadarko Petroleum Corp. ..................... 25,000 1,197,500 Ashland, Inc. ................................ 20,000 570,600 BP PLC, ADR .................................. 40,000 1,626,000 Chesapeake Energy Corp. ...................... 100,000 774,000 China Petroleum and Chemical Corp., ADR ................................. 30,000 502,500 Cimarex Energy Co. (a) ....................... 70,002 1,253,036 ConocoPhillips ............................... 35,385 1,712,280 CONSOL Energy, Inc. .......................... 97,500 1,684,800 Forest Oil Corp. (a) ......................... 40,000 1,106,000 Marathon Oil Corp. ........................... 65,400 1,392,366 Premcor, Inc. (a) ............................ 57,500 1,278,225 Stelmar Shipping Ltd. (a) .................... 50,000 753,000 Unocal Corp. ................................. 50,000 1,529,000 ----------- 15,379,307 ----------- See Accompanying Notes to Financial Statements 87 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA STRATEGIC VALUE FUND (CONT.) DECEMBER 31, 2002 Shares Value - -------------------------------------------------------------------------------- Financials (13.0%) Banks (4.3%) Bank of New York Co., Inc. ................... 40,000 $ 958,400 Bank One Corp. ............................... 40,000 1,462,000 Columbia Banking System, Inc. (a) ........................... 75,000 945,750 Mitsubishi Tokyo Financial Group, Inc., ADR .................................. 75,000 401,250 PNC Financial Services Group ................. 55,000 2,304,500 U.S. Bancorp ................................. 75,000 1,591,500 Wachovia Corp. ............................... 100,000 3,644,000 ----------- 11,307,400 ----------- Diversified Financials (3.0%) Citigroup, Inc. .............................. 50,000 1,759,500 Countrywide Financial Corp. .................. 40,000 2,066,000 J.P. Morgan Chase & Co. ...................... 70,000 1,680,000 Merrill Lynch & Co., Inc. .................... 32,500 1,233,375 Morgan Stanley ............................... 33,300 1,329,336 ----------- 8,068,211 ----------- Insurance (4.4%) American International Group, Inc. ................................ 57,500 3,326,375 Chubb Corp. .................................. 10,000 522,000 Everest Re Group Ltd. ........................ 35,000 1,935,500 John Hancock Financial Services, Inc ........................................ 40,000 1,116,000 Lincoln National Corp. ....................... 40,000 1,263,200 Millea Holdings, Inc., ADR ................... 20,000 704,000 Nationwide Financial Services, Inc., Class A .............................. 30,000 859,500 SAFECO Corp. ................................. 30,000 1,040,100 St. Paul Companies, Inc. ..................... 30,000 1,021,500 ----------- 11,788,175 ----------- Real Estate (1.3%) Crescent Real Estate Equities Co. ............................... 75,000 1,248,000 La Quinta Corp. (a) .......................... 150,000 660,000 Post Properties, Inc. ........................ 30,000 717,000 ProLogis ..................................... 30,000 754,500 ----------- 3,379,500 ----------- Health Care (7.8%) Biotechnology (0.1%) CuraGen Corp. (a) ............................ 50,000 232,500 ----------- Health Care Equipment & Supplies (2.3%) Baxter International, Inc. ................... 60,000 1,680,000 Becton, Dickinson and Co. .................... 30,000 920,700 Boston Scientific Corp. (a) .................. 30,000 1,275,600 Guidant Corp. (a) ............................ 75,000 2,313,750 ----------- 6,190,050 ----------- Health Care Providers & Services (0.7%) Option Care, Inc. (a) ........................ 100,000 796,000 Quovadx, Inc. (a) ............................ 100,000 242,000 WebMD Corp. (a) .............................. 100,000 855,000 ----------- 1,893,000 ----------- Pharmaceuticals (4.7%) Abbott Laboratories .......................... 50,000 2,000,000 Bristol-Myers Squibb Co. ..................... 100,000 2,315,000 Elan Corp. PLC, ADR (a) ...................... 200,000 492,000 Mylan Laboratories, Inc. ..................... 40,000 1,396,000 Novartis AG, ADR ............................. 65,000 2,387,450 Pharmacia Corp. .............................. 20,000 836,000 Schering AG, ADR ............................. 10,000 429,000 Schering-Plough Corp. ........................ 65,000 1,443,000 Shire Pharmaceuticals Group PLC, ADR (a) .................................... 20,000 377,800 Wyeth ........................................ 20,000 748,000 ----------- 12,424,250 ----------- Industrials (12.4%) Aerospace & Defense (1.9%) Honeywell International, Inc. ................ 105,800 2,539,200 Precision Castparts Corp. .................... 40,000 970,000 Raytheon Co. ................................. 52,500 1,614,375 ----------- 5,123,575 ----------- Airlines (1.0%) Continental Airlines, Inc., Class B (a) ................................ 100,000 725,000 Delta Air Lines, Inc. ........................ 150,000 1,815,000 ----------- 2,540,000 ----------- Commercial Services & Supplies (1.3%) Cendant Corp. (a) ............................ 75,000 786,000 Convergys Corp. (a) .......................... 50,000 757,500 Ionics, Inc. (a) ............................. 62,500 1,425,000 Sabre Holdings Corp. (a) ..................... 30,000 543,300 ----------- 3,511,800 ----------- Construction & Engineering (0.6%) Chicago Bridge & Iron Co., NY Shares .................................. 50,000 1,510,000 ----------- See Accompanying Notes to Financial Statements 88 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- Shares Value - -------------------------------------------------------------------------------- Electrical Equipment (1.6%) Cooper Industries Ltd., Class A .............. 50,000 $ 1,822,500 Emerson Electric Co. ......................... 32,500 1,652,625 Rockwell Automation, Inc. .................... 35,000 724,850 ----------- 4,199,975 ----------- Industrial Conglomerates (1.6%) 3M Co. ....................................... 35,000 4,315,500 ----------- Machinery (3.8%) Caterpillar, Inc. ............................ 67,500 3,086,100 Eaton Corp. .................................. 30,000 2,343,300 Greenbrier Companies, Inc. (a) ............... 35,000 249,550 Joy Global, Inc. (a) ......................... 40,000 450,400 Sauer-Danfoss, Inc. .......................... 50,000 395,000 Terex Corp. (a) .............................. 75,000 835,500 Timken Co. ................................... 50,000 955,000 Tomra Systems ASA, ADR ....................... 125,000 813,755 Trinity Industries, Inc. ..................... 30,000 568,800 UNOVA, Inc. (a) .............................. 75,000 450,000 ----------- 10,147,405 ----------- Marine (0.6%) Alexander & Baldwin, Inc. .................... 40,000 1,031,600 Grupo TMM SA de CV, ADR (a) .................. 100,000 515,000 ----------- 1,546,600 ----------- Information Technology (12.2%) Communications Equipment (1.5%) ADC Telecommunications, Inc. (a) ............ 200,000 418,000 Andrew Corp. (a) ............................. 50,000 514,000 Comverse Technology, Inc. (a) ................ 125,000 1,252,500 Motorola, Inc. ............................... 75,000 648,750 Tellabs, Inc. (a) ............................ 175,000 1,272,250 ----------- 4,105,500 ----------- Computers & Peripherals (2.1%) Apple Computer, Inc. (a) ..................... 50,000 716,500 Hewlett-Packard Co. .......................... 63,091 1,095,260 International Business Machines Corp ....................................... 16,900 1,309,750 SanDisk Corp. (a) ............................ 105,600 2,143,680 Sun Microsystems, Inc. (a) ................... 100,000 311,000 ----------- 5,576,190 ----------- Electronic Equipment & Instruments (2.3%) Agilent Technologies, Inc. (a) ............... 40,000 718,400 Celestica, Inc. (a) .......................... 60,000 846,000 Flextronics International Ltd. (a) ........... 125,000 1,023,750 Methode Electronics, Inc., Class A ........... 125,000 1,371,250 Millipore Corp. (a) .......................... 50,000 1,700,000 Symbol Technologies, Inc. .................... 50,000 411,000 ----------- 6,070,400 ----------- Internet Software & Services (0.1%) Vignette Corp. (a) ........................... 125,000 153,375 ----------- Semiconductor Equipment & Products (3.8%) Advanced Micro Devices, Inc. (a) ............ 100,000 646,000 Atmel Corp. (a) .............................. 100,000 223,000 FEI Co. (a) .................................. 75,000 1,146,750 Micron Technology, Inc. (a) .................. 100,000 974,000 Mykrolis Corp. (a) ........................... 125,000 912,500 Samsung Electronics Co., Ltd., GDR (b) .................................... 20,000 2,670,000 Teradyne, Inc. (a) ........................... 100,000 1,301,000 Texas Instruments, Inc. ...................... 150,000 2,251,500 ----------- 10,124,750 ----------- Software (2.4%) Autodesk, Inc. ............................... 100,000 1,430,000 BEA Systems, Inc. (a) ........................ 100,000 1,147,000 Jack Henry & Associates, Inc. ................ 50,000 602,000 Microsoft Corp. (a) .......................... 24,700 1,276,990 SAP AG, ADR .................................. 75,000 1,462,500 Siebel Systems, Inc. (a) ..................... 75,000 561,000 ----------- 6,479,490 ----------- Materials (8.5%) Chemicals (3.1%) A. Schulman, Inc. ............................ 50,000 930,500 Dow Chemical Co. ............................. 75,000 2,227,500 H.B. Fuller Co. .............................. 50,000 1,294,000 IMC Global, Inc. ............................. 175,000 1,867,250 Olin Corp. ................................... 50,000 777,500 Rohm and Haas Co. ............................ 32,000 1,039,360 ----------- 8,136,110 ----------- Construction Materials (0.3%) Martin Marietta Materials, Inc. .............. 27,500 843,150 ----------- Containers & Packaging (2.3%) Longview Fibre Co. (a) ....................... 100,000 723,000 Sealed Air Corp. (a) ......................... 47,500 1,771,750 Smurfit-Stone Container Corp (a) ............. 70,000 1,077,370 Temple-Inland, Inc. .......................... 57,500 2,576,575 ----------- 6,148,695 ----------- Metals & Mining (0.5%) Alcoa, Inc. .................................. 24,300 553,554 Barrick Gold Corp. ........................... 40,000 616,400 Stelco, Inc., Class A (a) .................... 125,000 298,300 ----------- 1,468,254 ----------- See Accompanying Notes to Financial Statements 89 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA STRATEGIC VALUE FUND (CONT.) DECEMBER 31, 2002 Shares Value - -------------------------------------------------------------------------------- Paper & Forest Products (2.3%) Abitibi-Consolidated, Inc. ................ 175,000 $ 1,349,250 Georgia-Pacific Corp. ..................... 125,000 2,020,000 MeadWestvaco Corp. ........................ 40,000 988,400 Norske Skogindustrier ASA ................. 32,700 462,574 Sappi Ltd., ADR ........................... 50,000 661,000 Votorantim Celulose e Papel SA, ADR ................................. 35,000 575,400 ------------- 6,056,624 ------------- Telecommunication Services (4.9%) Diversified Telecommunication Services (3.1%) AT&T Corp. ................................ 87,500 2,284,625 PT Telekomunikasi Indonesia, ADR .......................... 150,000 1,273,500 SBC Communications, Inc., ADR ............. 97,000 2,629,670 Verizon Communications, Inc. .............. 49,900 1,933,625 ------------- 8,121,420 ------------- Wireless Telecommunication Services (1.8%) AO VimpelCom, ADR (a) ..................... 75,000 2,400,750 AT&T Wireless Services, Inc. (a) ......... 227,100 1,283,114 Nextel Communications, Inc., Class A (a) ............................. 100,000 1,155,000 ------------- 4,838,864 ------------- Utilities (1.4%) Electric Utilities (0.6%) TECO Energy, Inc. ......................... 75,000 1,160,250 Xcel Energy, Inc. ......................... 50,000 550,000 ------------- 1,710,250 ------------- Gas Utilities (0.1%) El Paso Corp. ............................. 47,300 329,208 ------------- Multi-Utilities & Unregulated Power (0.4%) Aquila, Inc. .............................. 100,000 177,000 Duke Energy Corp. ......................... 40,000 781,600 ------------- 958,600 ------------- Water Utilities (0.3%) California Water Service Group ............ 30,000 709,500 ------------- Total Common Stocks (Cost of $239,014,820) .................. 233,013,693 ------------- Preferred Stock (0.4%) Consumer Discretionary (0.4%) Media (0.4%) News Corp., Ltd., ADR (Cost of $1,077,224) .................... 50,000 1,132,500 ------------- Investment Management Funds (0.9%) iShare MSCI Japan Index Fund (a) ................................ 200,000 1,390,000 Japan Smaller Capitalization Fund, Inc. (a) ................................ 175,000 1,067,500 ------------- Total Investment Management Funds (Cost of $2,593,872) .................... 2,457,500 ------------- Short-Term Obligation (11.1%) Par Repurchase agreement with State Street Bank & Trust Co., dated 12/31/02, due 01/02/03 at 1.050%, collateralized by U.S. Treasury Bond and Note with maturities to 11/15/10, market value of $30,008,145 (repurchase proceeds $29,414,716) (Cost of $29,413,000) ................... $ 29,413,000 29,413,000 ------------- Total Investments (100.1%) (Cost of $272,098,916) (c) .............. 266,016,693 ------------- Other Assets & Liabilities, Net (-0.1%) ....... (175,473) ------------- Net Assets (100.0%) ........................... $ 265,841,220 ============= Notes to Schedule of Investments: (a) Non-income producing. (b) This security is exempt from registration under Rule 144A of the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At December 31, 2002, the value of these securities amounted to $3,690,000 which represents 1.4% of net assets. (c) Cost for federal income tax purposes is $275,219,996. Acronym Name ------- ---- ADR American Depositary Receipt GDR Global Depositary Receipt See Accompanying Notes to Financial Statements 90 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA BALANCED FUND DECEMBER 31, 2002 Shares Value - -------------------------------------------------------------------------------- Common Stocks (57.2%) Consumer Discretionary (9.9%) Auto Components (0.4%) Magna International, Inc., Class A ......... 44,300 $ 2,487,445 ----------- Automobiles (0.4%) Honda Motor Co., Ltd., ADR ................. 167,700 3,028,662 ----------- Hotels, Restaurants & Leisure (0.4%) Hilton Hotels Corp. ........................ 231,000 2,936,010 ----------- Household Durables (0.6%) Fortune Brands, Inc. ....................... 21,300 990,663 Koninklijke (Royal) Philips Electronics NV, NY Registered Shares ................................... 159,200 2,814,656 ----------- 3,805,319 ----------- Media (3.2%) AOL Time Warner, Inc. (a) .................. 386,487 5,062,980 Clear Channel Communications, Inc. (a) ................................. 62,600 2,334,354 Comcast Corp., Class A (a) ................. 229,556 5,410,635 Liberty Media Corp., Class A (a) .......... 452,529 4,045,609 Viacom, Inc., Class B (a) .................. 82,200 3,350,472 Walt Disney Co. ............................ 65,825 1,073,606 ----------- 21,277,656 ----------- Multi-Line Retail (3.7%) Dollar General Corp. ....................... 150,800 1,802,060 Kohl's Corp. (a) ........................... 129,050 7,220,347 Nordstrom, Inc. ............................ 105,400 1,999,438 Wal-Mart Stores, Inc. ...................... 269,850 13,630,123 ----------- 24,651,968 ----------- Specialty Retail (1.2%) Best Buy Co., Inc. (a) ..................... 21,100 509,565 CarMax, Inc. (a) ........................... 82,456 1,474,313 Staples, Inc. (a) .......................... 344,300 6,300,690 ----------- 8,284,568 ----------- Consumer Staples (3.6%) Beverages (1.2%) Pepsi Bottling Group, Inc. ................. 84,000 2,158,800 PepsiCo, Inc. .............................. 133,300 5,627,926 ----------- 7,786,726 ----------- Food Products (0.6%) Unilever PLC, ADR .......................... 61,400 3,788,994 ----------- Household Products (0.2%) Procter & Gamble Co. ....................... 13,800 1,185,972 ----------- Personal Products (0.9%) Alberto-Culver Co., Class B ................ 31,000 1,562,400 Gillette Co. ............................... 156,300 4,745,268 ----------- 6,307,668 ----------- Tobacco (0.7%) Philip Morris Companies, Inc. .............. 116,000 4,701,480 ----------- Energy (4.2%) Energy Equipment & Services (0.9%) ENSCO International, Inc. .................. 36,100 1,063,145 GlobalSantaFe Corp. ........................ 84,150 2,046,528 Noble Corp. (a) ............................ 56,075 1,971,036 Rowan Companies, Inc. ...................... 38,400 871,680 ----------- 5,952,389 ----------- Oil & Gas (3.3%) Apache Corp. ............................... 70,680 4,028,053 ChevronTexaco Corp. ........................ 22,950 1,525,716 ConocoPhillips ............................. 34,650 1,676,713 Devon Energy Corp. ......................... 71,300 3,272,670 EOG Resources, Inc. ........................ 106,000 4,231,520 Exxon Mobil Corp. .......................... 211,559 7,391,871 ----------- 22,126,543 ----------- Financials (12.6%) Banks (3.7%) Bank of America Corp. ...................... 135,810 9,448,302 Bank of New York Co., Inc. ................. 70,600 1,691,576 Bank One Corp. ............................. 186,550 6,818,402 Fifth Third Bancorp ........................ 27,600 1,615,980 KeyCorp .................................... 38,500 967,890 Wells Fargo & Co. .......................... 85,100 3,988,637 ----------- 24,530,787 ----------- Diversified Financial Services (6.2%) American Express Co. ....................... 221,350 7,824,722 Charles Schwab Corp. ....................... 63,800 692,230 Citigroup, Inc. ............................ 404,693 14,241,147 Franklin Resources, Inc. ................... 44,900 1,530,192 Freddie Mac ................................ 49,650 2,931,832 J.P. Morgan Chase & Co. .................... 106,740 2,561,760 MBNA Corp. ................................. 193,150 3,673,713 Merrill Lynch & Co., Inc. .................. 127,650 4,844,317 Morgan Stanley ............................. 36,200 1,445,104 SLM Corp. .................................. 19,700 2,046,042 ----------- 41,791,059 ----------- Insurance (2.7%) American International Group, Inc. ......... 188,862 10,925,667 Berkshire Hathaway, Inc., Class A (a) .............................. 25 1,818,750 Hartford Financial Services Group, Inc. .............................. 45,900 2,085,237 See Accompanying Notes to Financial Statements 91 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA BALANCED FUND (CONT.) DECEMBER 31, 2002 Shares Value - -------------------------------------------------------------------------------- Marsh & McLennan Companies, Inc ........................................ 74,400 $ 3,438,024 ----------- 18,267,678 ----------- Health Care (7.3%) Biotechnology (0.5%) Amgen, Inc. (a) .............................. 51,200 2,475,008 MedImmune, Inc. (a) .......................... 43,800 1,190,046 ----------- 3,665,054 ----------- Health Care Equipment & Supplies (0.2%) Medtronic, Inc. .............................. 27,500 1,254,000 ----------- Health Care Providers & Services (0.6%) AmerisourceBergen Corp. ...................... 33,100 1,797,661 HCA, Inc. .................................... 28,600 1,186,900 UnitedHealth Group, Inc. ..................... 16,400 1,369,400 ----------- 4,353,961 ----------- Pharmaceuticals (6.0%) Abbott Laboratories .......................... 157,350 6,294,000 Bristol-Myers Squibb Co. ..................... 206,596 4,782,072 Johnson & Johnson ............................ 72,000 3,867,120 Merck & Co., Inc. ............................ 52,800 2,989,008 Pfizer, Inc. ................................. 261,550 7,995,583 Pharmacia Corp. .............................. 183,400 7,666,120 Schering-Plough Corp. ........................ 41,600 923,520 Wyeth ........................................ 142,500 5,329,500 ----------- 39,846,923 ----------- Industrials (6.0%) Aerospace & Defense (1.0%) Northrop Grumman Corp. ....................... 25,900 2,512,300 United Technologies Corp. .................... 64,200 3,976,548 ----------- 6,488,848 ----------- Airlines (0.1%) Continental Airlines, Inc., Class B (a) ................................ 84,500 612,625 ----------- Commercial Services & Supplies (0.9%) Concord EFS, Inc. (a) ........................ 108,100 1,701,494 First Data Corp. ............................. 91,600 3,243,556 Waste Management, Inc. ....................... 45,900 1,052,028 ----------- 5,997,078 ----------- Industrial Conglomerates (2.8%) 3M Co. ....................................... 32,350 3,988,755 General Electric Co. ......................... 391,900 9,542,765 Tyco International Ltd. ...................... 321,002 5,482,714 ----------- 19,014,234 ----------- Machinery (0.8%) Illinois Tool Works, Inc. .................... 61,400 3,982,404 Navistar International Corp. (a) ............ 58,400 1,419,704 ----------- 5,402,108 ----------- Road & Rail (0.2%) Union Pacific Corp. .......................... 18,750 1,122,562 ----------- Trading Companies & Distributors (0.2%) W.W. Grainger, Inc. .......................... 32,650 1,683,107 ----------- Information Technology (8.3%) Communications Equipment (1.0%) Cisco Systems, Inc. (a) ...................... 429,110 5,621,341 Comverse Technology, Inc. (a) ................ 101,400 1,016,028 ----------- 6,637,369 ----------- Computers & Peripherals (2.0%) Dell Computer Corp. (a) ...................... 100,500 2,687,370 EMC Corp. (a) ................................ 175,100 1,075,114 Hewlett-Packard Co. .......................... 174,300 3,025,848 International Business Machines Corp ....................................... 82,900 6,424,750 ----------- 13,213,082 ----------- Electronic Equipment & Instruments (0.1%) Waters Corp. (a) ............................. 39,200 853,776 ----------- Semiconductor Equipment & Products (1.5%) Applied Materials, Inc. (a) .................. 109,300 1,424,179 Intel Corp. .................................. 147,750 2,300,467 Microchip Technology, Inc. ................... 130,150 3,182,168 Micron Technology, Inc. (a) .................. 97,200 946,728 National Semiconductor Corp. (a) ............ 68,800 1,032,688 Taiwan Semiconductor Manufacturing Co., Ltd., ADR (a) ......................... 171,475 1,208,899 ----------- 10,095,129 ----------- Software (3.7%) Intuit, Inc. (a) ............................. 37,025 1,737,213 Microsoft Corp. (a) .......................... 338,000 17,474,600 Oracle Corp. (a) ............................. 259,500 2,802,600 SAP AG, ADR .................................. 118,000 2,301,000 VERITAS Software Corp. (a) ................... 29,800 465,476 ----------- 24,780,889 ----------- Materials (2.6%) Chemicals (0.8%) Dow Chemical Co. ............................. 103,500 3,073,950 Mosanto Co. .................................. 7 135 Praxair, Inc. ................................ 37,400 2,160,598 ----------- 5,234,683 ----------- Metals & Mining (1.1%) Barrick Gold Corp. ........................... 150,500 2,319,205 See Accompanying Notes to Financial Statements 92 SCHEDULE OF INVESTMENTS Shares Value - -------------------------------------------------------------------------------- Freeport-McMoRan Copper & Gold, Inc. (a) ........................... 102,000 $ 1,711,560 Inco Ltd. (a) ................................ 85,400 1,812,188 Nucor Corp. .................................. 31,900 1,317,470 ----------- 7,160,423 ----------- Paper & Forest Products (0.7%) Georgia-Pacific Corp. ........................ 103,900 1,679,024 International Paper Co. ...................... 31,500 1,101,555 Weyerhaeuser Co. ............................. 40,300 1,983,163 ----------- 4,763,742 ----------- Telecommunication Services (2.7%) Diversified Telecommunication Services (2.4%) AT&T Corp. ................................... 92,600 2,417,786 SBC Communications, Inc. ..................... 308,250 8,356,658 Verizon Communications, Inc. ................. 131,900 5,111,125 ----------- 15,885,569 ----------- Wireless Telecommunication Services (0.3%) Vodafone Group PLC, ADR ...................... 109,400 1,982,328 ----------- Total Common Stocks (Cost of $379,051,486) ..................... 382,958,414 ----------- Preferred Stock (0.9%) Consumer Discretionary (0.9%) Media (0.9%) News Corp., Ltd., ADR (Cost of $5,658,243) ....................... 254,750 5,770,088 ----------- U.S. Government Securities (14.2%) Par U.S. Treasury Notes & Bonds (3.1%) U.S. Treasury Bonds: 6.250% 08/15/23 ............................ $ 7,405,000 8,702,038 8.875% 08/15/17 ............................ 3,770,000 5,511,122 U.S. Treasury Inflation Index Bonds, 3.375% 01/15/07 ............................ 5,950,100 6,445,636 ----------- 20,658,796 ----------- U.S. Agency Bonds (4.7%) Federal Home Loan Bank, 5.375% 01/05/04 ............................ 7,650,000 7,970,091 Federal Home Loan Mortgage Corp., 5.000% TBA (b) ............................. 3,960,000 4,059,000 Federal National Mortgage Association: 5.000% TBA (b) ............................. 12,600,000 12,899,250 5.000% TBA (b) ............................. 6,350,000 6,480,969 ----------- 31,409,310 ----------- Par Value - -------------------------------------------------------------------------------- Government National Mortgage Association (GNMA) (0.7%) 7.000% 10/15/31 - 05/15/32 ................... $ 4,282,575 $ 4,541,499 ----------- Federal Home Loan Mortgage Corp. (FHLMC) (2.2%) 6.000% 03/01/17 - 08/01/17 ................... 8,629,809 9,032,790 6.500% 01/15/30 - 08/01/32 ................... 5,294,182 5,518,782 ----------- 14,551,572 ----------- Federal National Mortgage Association (FNMA) (0.3%) 5.908% 07/01/32 .............................. 1,748,224 1,816,826 ----------- Federal Housing Administration (FHA) (0.2%) FHA Insured Project Pool 53-43077, 9.125% 03/25/33 ............................ 1,564,319 1,576,130 ----------- Agency Collateralized Mortgage Obligations (3.0%) FHLMC Multiclass Mtg. Partn. Ctfs., Gtd.: Series 2065, Class PB, 6.250% 01/15/24 ............................ 1,006,804 1,019,876 Series 2235, Class VN, 7.000% 06/15/14 ............................ 3,980,000 4,260,460 Series 2462, Class JE, 6.500% 11/15/30 ............................ 1,610,000 1,712,638 FNMA Gtd. Remic Pass Thru Ctfs.: Remic Tr. 2001-55, Class PC, 6.500% 10/25/31 ............................ 5,090,000 5,379,902 Remic Tr. 2001-56, Class KD, 6.500% 07/25/30 ............................ 2,260,000 2,385,094 Remic Tr. 2002-8, Class PD, 6.500% 07/25/30 ............................ 3,570,000 3,763,534 Remic Tr. 2002-27, Class OG, 6.500% 12/25/30 ............................ 1,820,000 1,917,825 ----------- 20,439,329 ----------- Total U.S. Government Securities (Cost of $90,679,727) ...................... 94,993,462 ----------- Corporate Notes & Bonds (14.6%) Industrial (7.4%) Advance PCS, 8.500% 04/01/08 ............................ 500,000 520,000 Alcan, Inc., 7.250% 03/15/31 ............................ 675,000 803,074 Alcoa, Inc.: 5.375% 01/15/13 ............................ 750,000 795,330 6.500% 06/15/18 ............................ 725,000 790,883 Allied Waste North America, Inc., 10.000% 08/01/09 ........................... 350,000 347,375 See Accompanying Notes to Financial Statements 93 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA BALANCED FUND (CONT.) DECEMBER 31, 2002 Par Value - -------------------------------------------------------------------------------- American Axle & Manufacturing, Inc., 9.750% 03/01/09 ........................ $ 350,000 $ 375,375 American Home Products Corp., 6.250% 03/15/06 ........................ 1,370,000 1,489,512 AmerisourceBergen Corp., 8.125% 09/01/08 ........................ 125,000 133,125 Anadarko Finance Co., 7.500% 05/01/31 ........................ 1,500,000 1,789,359 Anthem, Inc., 6.800% 08/01/12 ........................ 925,000 1,008,283 AOL Time Warner, Inc., 7.975% 08/15/04 ........................ 1,578,000 1,660,343 AT&T Corp., 8.500% 11/15/31 ........................ 650,000 718,912 Ball Corp., 7.750% 08/01/06 ........................ 350,000 367,500 British Sky Broadcasting Group, 7.300% 10/15/06 ........................ 100,000 104,000 Canadian National Railway Co.: 6.450% 07/15/06 ........................ 300,000 329,064 7.195% 01/02/16 ........................ 1,188,720 1,351,331 Canandaigua Brands, Inc., 8.500% 03/01/09 ........................ 350,000 366,625 ChevronTexaco Capital Co., 3.500% 09/17/07 ........................ 1,100,000 1,120,951 Coca-Cola Enterprises, Inc., 6.750% 01/15/38 ........................ 1,045,000 1,173,345 Coors Brewing Co., 6.375% 05/15/12 ........................ 900,000 1,007,592 Cott Beverages, Inc., 8.000% 12/15/11 ........................ 350,000 371,000 Cox Enterprises, Inc., 8.000% 02/15/07 (c) .................... 1,350,000 1,501,010 Cummins, Inc., 9.500% 12/01/10 (c) .................... 565,000 601,725 Devon Financing Corp., 6.875% 09/30/11 ........................ 1,300,000 1,450,427 Diageo Capital PLC, 3.500% 11/19/07 ........................ 2,350,000 2,364,603 Extended Stay America, Inc., 9.875% 06/15/11 ........................ 300,000 304,500 Grant Prideco, Inc., 9.000% 12/15/09 (c) .................... 220,000 228,800 Harrah's Operating, Inc., 7.875% 12/15/05 ........................ 350,000 371,000 Hasbro, Inc., 8.500% 03/15/06 ........................ 350,000 357,000 HCA, Inc., 6.910% 06/15/05 ........................ 450,000 472,840 Honeywell International, Inc., 7.500% 03/01/10 ........................ 1,545,000 1,808,081 International Business Machines Corp., 5.875% 11/29/32 ........................ 1,700,000 1,688,027 Iron Mountain, Inc., 8.750% 09/30/09 ........................ 250,000 257,813 ITT Corp., 6.750% 11/15/05 ........................ 350,000 350,000 KB Home, 8.625% 12/15/08 ........................ 500,000 517,500 L-3 Communications Corp., 7.625% 06/15/12 ........................ 25,000 25,750 Lamar Media Corp., 8.625% 09/15/07 ........................ 350,000 365,750 Lear Corp., 7.960% 05/15/05 ........................ 350,000 359,188 Lowe's Companies, Inc., 6.500% 03/15/29 ........................ 700,000 751,182 MediaCom LLC, 9.500% 01/15/13 ........................ 500,000 450,000 Nextel Communications, Inc.: 9.750% 10/31/07 ........................ 150,000 138,750 10.650% 09/15/07 ....................... 100,000 95,500 Omnicare, Inc., 8.125% 03/15/11 ........................ 350,000 374,500 Park Place Entertainment Corp., 9.375% 02/15/07 ........................ 350,000 373,625 Pennzoil-Quaker State Co., 10.000% 11/01/08 ....................... 325,000 403,000 PepsiAmericas, Inc., 3.875% 09/12/07 ........................ 1,450,000 1,474,950 Phillips Petroleum Co., 8.500% 05/25/05 ........................ 1,890,000 2,150,334 Premier Parks, Inc., 9.750% 06/15/07 ........................ 500,000 485,000 Pride International, Inc., 9.375% 05/01/07 ........................ 500,000 522,500 Procter & Gamble Co., 4.750% 06/15/07 ........................ 1,550,000 1,663,595 Select Medical Corp., 9.500% 06/15/09 ........................ 375,000 388,125 Silgan Holdings, Inc., 9.000% 06/01/09 ........................ 500,000 521,250 Sinclair Broadcasting Group, Inc.: 8.000% 03/15/12 (c) .................... 190,000 198,075 8.000% 03/15/12 ........................ 30,000 31,275 See Accompanying Notes to Financial Statements 94 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- Par Value - -------------------------------------------------------------------------------- Station Casinos, Inc.: 8.875% 12/01/08 ........................ $ 50,000 $ 52,000 9.875% 07/01/10 ........................ 240,000 260,400 TCI Communications, Inc., 7.250% 08/01/05 ........................ 1,485,000 1,565,456 Teekay Shipping Corp., 8.875% 07/15/11 ........................ 300,000 307,875 Toll Corp., 7.750% 09/15/07 ........................ 350,000 344,750 United Rentals, Inc., 10.750% 04/15/08 ....................... 250,000 248,750 United Technologies Corp., 6.500% 06/01/09 ........................ 1,685,000 1,887,286 Verizon Global Funding Corp., 7.250% 12/01/10 ........................ 1,800,000 2,049,518 Vintage Petroleum, Inc., 9.750% 06/30/09 ........................ 200,000 208,000 Wal-Mart Stores, Inc., 4.375% 07/12/07 ........................ 1,570,000 1,656,807 Westport Resources Corp., 8.250% 11/01/11 (c) .................... 365,000 383,250 XTO Energy, Inc., 7.500% 04/15/12 ........................ 300,000 318,750 Yum! Brands, Inc., 8.500% 04/15/06 ........................ 500,000 531,250 ----------- 49,482,746 ----------- Financials (4.5%) American General Finance Corp., 5.375% 09/01/09 ........................ 475,000 499,773 Bank of America Corp., 7.800% 02/15/10 ........................ 2,225,000 2,650,376 CIT Group, Inc., 7.250% 08/15/05 ........................ 890,000 944,256 Citigroup, Inc., 7.250% 10/01/10 ........................ 1,565,000 1,819,511 Ford Motor Credit Co.: 6.875% 02/01/06 ........................ 1,105,000 1,107,691 7.375% 10/28/09 ........................ 1,885,000 1,870,731 General Electric Capital Corp.: 4.250% 01/15/08 ........................ 500,000 513,354 6.000% 06/15/12 ........................ 2,350,000 2,541,845 General Motors Acceptance Corp., 5.250% 05/16/05 ........................ 2,200,000 2,208,873 Health Care Property Investors, Inc., 6.450% 06/25/12 ........................ 1,500,000 1,513,780 Health Care REIT, Inc., 7.500% 08/15/07 ........................ 350,000 369,419 Household Finance Corp., 6.400% 06/17/08 ........................ 1,250,000 1,334,455 RH Donnelley Financial Corp.: 8.875% 12/15/10 (c) .................... 30,000 32,100 10.875% 12/15/12 (c) ................... 215,000 234,350 SLM Corp., 5.125% 08/27/12 ........................ 1,900,000 1,952,360 Travelers Property Casualty Corp., 6.750% 11/15/06 ........................ 1,925,000 2,168,665 US Bank N.A., 6.375% 08/01/11 ........................ 2,200,000 2,471,553 Wachovia Corp., 4.950% 11/01/06 ........................ 2,100,000 2,242,794 Washington Mutual, Inc., 5.625% 01/15/07 ........................ 1,500,000 1,606,664 Wells Fargo & Co., 7.250% 08/24/05 ........................ 2,000,000 2,246,406 ----------- 30,328,956 ----------- Utilities (1.5%) FPL Group Capital, Inc., 6.125% 05/15/07 ........................ 2,000,000 2,163,834 Kinder Morgan Energy Partners L.P., 8.000% 03/15/05 ........................ 1,475,000 1,626,950 Pepco Holdings, Inc., 6.450% 08/15/12 (c) .................... 1,525,000 1,617,767 Progress Energy, Inc., 7.750% 03/01/31 ........................ 1,000,000 1,140,739 Southern Power Co., 6.250% 07/15/12 ........................ 1,650,000 1,743,266 Texas Eastern Transmission Corp., 7.300% 12/01/10 ........................ 1,275,000 1,411,164 ----------- 9,703,720 ----------- International (1.2%) British Columbia Province, 5.375% 10/29/08 ........................ 2,150,000 2,370,517 Ontario Province, 3.500% 09/17/07 ........................ 2,200,000 2,237,737 Quebec Province, 6.500% 01/17/06 ........................ 2,100,000 2,329,333 United Mexican States, 8.000% 09/24/22 ........................ 1,150,000 1,193,125 ----------- 8,130,712 ----------- Total Corporate Notes & Bonds (Cost of $90,239,302) .................. 97,646,134 ----------- See Accompanying Notes to Financial Statements 95 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA BALANCED FUND (CONT.) DECEMBER 31, 2002 Par Value - -------------------------------------------------------------------------------- Other Securitized Loans (9.7%) Asset-Backed Securities (4.4%) Cityscape Home Equity Loan Trust: Series 1997-B, Class A7, 7.410% 05/25/28 ......................... $ 2,080,277 $ 2,242,148 Series 1997-4, Class A4, 7.440% 10/25/18 ......................... 2,254,045 2,461,697 First Alliance Mortgage Trust, Series 1996-1, Class A1, 7.340% 06/20/27 ......................... 338,022 337,938 IMC Home Equity Loan Trust: Series 1997-3, Class A6, 7.520% 08/20/28 ......................... 1,914,988 2,008,205 Series 1997-5, Class A9, 7.310% 11/20/28 ......................... 2,180,000 2,314,581 Merit Securities Corp., Series 13, Class A4, 7.880% 12/28/33 ......................... 6,620,000 6,382,224 Salomon Brothers Mortgage Securities VII, Series 1998-AQ1, Class A5, 7.150% 06/25/28 ......................... 3,150,000 3,411,851 SLM Student Loan Trust: Series 1997-3, Class A2, 2.293% 10/25/10 (d) ..................... 4,698,765 4,727,132 Series 1997-4, Class A2, 2.403% 10/25/10 (d) ..................... 5,525,000 5,571,263 ------------- 29,457,039 ------------- Collateralized Mortgage Obligations (3.2%) Bear Stearns Mortgage Securities, Inc., Series 1996-2, Class A1, 4.278% 01/28/25 ......................... 1,968,603 1,926,384 CMC Securities Corp. IV, Series 1997-2, Class IA12, 7.250% 11/25/27 ......................... 2,460,091 2,493,683 Countrywide Home Loans, Inc., Series 2002-16, Class 1A1, 6.500% 09/25/32 ......................... 1,043,396 1,074,766 First Nationwide Trust, Series 2000-1, Class IIA3, 8.000% 10/25/30 ......................... 5,016,020 5,167,597 PNC Mortgage Securities Corp., Series 1999-5, Class 2A6, 6.750% 07/25/29 ......................... 273,930 275,285 Residential Asset Securitization Trust, Series 2002-A7, Class A2, 5.180% 11/25/26 ......................... 5,630,000 5,788,823 SACO I, Inc., Series 1995-1, Class A, 5.677% 09/25/24 (c)(d) .................. 1,518,209 1,477,408 Structured Asset Securities Corp.: Series 1999-ALS2, Class A2, 6.750% 07/25/29 ......................... 1,758,850 1,776,634 Series 2001-12, Class A2, 5.800% 09/25/31 ......................... 1,013,110 1,029,051 ------------- 21,009,631 ------------- Commercial Mortgage-Backed Securities (2.1%) Commercial Capital Access One, Inc., Series 3A, Class A2, 6.615% 11/15/28 (c) ..................... 6,930,000 7,782,790 GMAC Commercial Mortgage Asset Corp., Series 2001-FLAA, Class B1, 1.920% 06/15/13 (c)(d) .................. 1,482,327 1,479,342 Nationslink Funding Corp., Series 1999-SL, Class A5, 6.888% 05/10/07 ......................... 4,380,000 4,934,452 ------------- 14,196,584 ------------- Total Other Securitized Loans (Cost of $62,703,445) ................... 64,663,254 ------------- Short-Term Obligations (5.7%) U.S. Treasury Bill (1.0%) 1.140% 01/30/03 ......................... 7,100,000 7,092,635 ------------- Repurchase Agreement (4.7%) Repurchase agreement with State Street Bank & Trust Co., dated 12/31/02, due 01/02/03 at 1.050%, collateralized by U.S. Treasury Notes with various maturities to 08/15/11, market value of $32,341,744 (repurchase proceeds $31,704,849)(e) ................ 31,703,000 31,703,000 ------------- Total Short-Term Obligations (Cost of $38,795,635) ................... 38,795,635 ------------- Total Investments (102.3%) (Cost of $667,127,838)(f) ............... 684,826,987 ------------- Other Assets & Liabilities, Net (-2.3%) ....... (15,336,904) ------------- Net Assets (100.0%) ........................... $ 669,490,083 ============= See Accompanying Notes to Financial Statements 96 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- Notes to Schedule of Investments: (a) Non-income producing. (b) This security, or a portion thereof, has been purchased on a delayed delivery basis whereby the terms that are fixed are the purchase price, interest rate and settlement date. The exact quantity purchased may be slightly more or less than the amount shown. (c) This security is exempt from registration under Rule 144A of the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At December 31, 2002, the value of these securities amounted to $15,536,617 which represents 2.3% of net assets. (d) Variable rate security. The rate reported is the rate in effect at December 31, 2002. (e) A portion of this issue has been segregated to cover delayed delivery securities. (f) Cost for federal income tax purposes is $671,749,366. Acronym Name ------- ---- ADR American Depository Receipt TBA To Be Announced COLUMBIA SHORT TERM BOND FUND DECEMBER 31, 2002 Par Value - -------------------------------------------------------------------------------- U.S. Government Securities (31.5%) U.S. Treasury Notes & Bonds (7.1%) U.S. Treasury Notes: 3.500% 11/15/06 ............................ $ 5,565,000 $ 5,792,820 4.250% 11/15/03 ............................ 4,750,000 4,874,877 5.875% 11/15/04 ............................ 1,000,000 1,080,352 6.250% 02/15/03 ............................ 7,100,000 7,144,382 U.S. Treasury Inflation Index Note, 3.375% 01/15/07 ............................ 6,590,880 7,139,782 ----------- 26,032,213 ----------- U.S. Agency Bonds (5.1%) Federal Home Loan Bank: 3.750% 04/15/04 ............................ 1,000,000 1,029,775 5.375% 01/05/04 ............................ 3,630,000 3,781,886 6.375% 11/14/03 ............................ 5,250,000 5,480,202 Federal Home Loan Mortgage Corp.: 4.300% 05/31/05 ............................ 3,850,000 3,890,017 4.625% 03/22/06 ............................ 1,000,000 1,020,802 Federal National Mortgage Association: 3.125% 11/15/03 ............................ 75,000 76,205 3.500% 08/12/05 ............................ 3,500,000 3,506,594 ----------- 18,785,481 ----------- Government National Mortgage Association (GNMA) (1.5%) 6.500% 09/13/13 - 07/15/32 ................. 4,210,617 4,430,376 7.000% 11/15/13 - 08/15/29 ................. 940,326 1,001,988 ----------- 5,432,364 ----------- Federal Home Loan Mortgage Corp. (FHLMC) (3.6%) 5.000% TBA (a) ............................. 7,320,000 7,503,000 6.000% 10/01/06 - 08/01/17 ................. 4,384,913 4,580,230 7.000% 05/01/19 ............................ 4,693 4,934 7.500% 09/01/15 ............................ 515,107 549,003 8.500% 07/01/30 ............................ 505,015 540,744 ----------- 13,177,911 ----------- Federal National Mortgage Association (FNMA) (9.4%) 5.000% TBA (a) ............................. 20,130,000 20,608,088 5.000% TBA (a) ............................. 900,000 918,563 6.000% 03/01/09 - 05/01/17 ................. 8,575,785 8,950,040 6.500% 03/01/02 - 07/01/02 ................. 531,390 557,987 7.500% 08/01/15 ............................ 651,431 695,112 8.000% 05/01/05 - 05/01/31 ................. 2,491,882 2,675,450 ----------- 34,405,240 ----------- Agency Collateralized Mortgage Obligations (4.8%) FNMA: Series 2001-34, Class AE, 6.000% 07/25/29 ............................ 1,250,000 1,314,333 Series 2001-70, Class CA, 6.000% 05/25/30 ............................ 392,060 391,782 Series 2002-42, Class A, 6.000% 01/25/16 ............................ 3,102,286 3,241,052 Series 2002-W6, Class 1A1, 3.090% 12/25/28 ............................ 4,105,196 4,101,809 FNMA Gtd. Remic Pass Thru Ctfs.: Remic Tr. 1991-146, Class Z, 8.000% 10/25/06 ............................ 63,342 67,673 Remic Tr. 1998-10, Class B, 8.950% 05/25/03 ............................ 590 596 FHLMC, 6.000% 06/15/31 ............................ 1,000,000 1,042,941 Multiclass Mtg. Partn. Ctfs.: Series 1138, Class G, 8.500% 09/15/06 ............................ 149,977 155,364 Series 1283, Class K, 7.000% 06/15/22 ............................ 814,131 857,494 Series 1839, Class C, 6.500% 04/15/25 ............................ 680,494 694,812 See Accompanying Notes to Financial Statements 97 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA SHORT TERM BOND FUND (CONT.) DECEMBER 31, 2002 Par Value - -------------------------------------------------------------------------------- Series 2008, Class A, 6.500% 11/15/23 .......................... $ 18,098 $ 18,098 Series 2052, Class PG, 6.250% 02/15/23 .......................... 195,329 196,062 Series 2387, Class D, 5.500% 12/15/26 .......................... 3,061,454 3,125,927 Structured Pass Thru Securities, Series T-41, Class 1A1, 3.340% 08/25/16 .......................... 2,409,201 2,408,683 ------------ 17,616,626 ------------ Total U.S. Government Securities (Cost of $113,595,003) ..................... 115,449,835 ------------ Corporate Notes & Bonds (32.9%) Industrial (13.6%) Alcoa, Inc.: 1.700% 12/06/04 .......................... 3,000,000 3,009,411 7.250% 08/01/05 .......................... 750,000 840,389 Anadarko Petroleum Corp., 5.375% 03/01/07 .......................... 1,650,000 1,764,911 Anthem, Inc., 4.875% 08/01/05 .......................... 425,000 441,542 AOL Time Warner, Inc., 6.125% 04/15/06 .......................... 1,750,000 1,808,424 7.975% 08/15/04 .......................... 375,000 394,568 AT&T Corp., 7.000% 11/15/06 .......................... 1,300,000 1,390,853 BP America, Inc., Medium Term Notes, Series 7, 5.000% 12/16/03 .......................... 500,000 516,125 Caterpillar Financial Services Corp., 6.875% 08/01/04 .......................... 500,000 537,629 ChevronTexaco Capital Co., 3.500% 09/17/07 .......................... 3,000,000 3,057,138 Coca-Cola Enterprises, Inc., 8.000% 01/04/05 .......................... 650,000 724,279 Colgate-Palmolive Co., 1.525% 08/16/04 .......................... 3,000,000 3,007,197 Conoco, Inc., 5.900% 04/15/04 .......................... 150,000 157,068 ConocoPhillips, 8.500% 05/25/05 .......................... 2,300,000 2,616,809 Costco Wholesale Corp., 5.500% 03/15/07 .......................... 640,000 689,337 Cox Enterprises, Inc., 8.000% 02/15/07 (b) ...................... 550,000 611,522 Deere & Co., 6.550% 07/15/04 .......................... 1,250,000 1,333,233 Diageo Capital PLC, 3.500% 11/19/07 .......................... 3,500,000 3,521,749 Gannett Co., Inc., 4.950% 04/01/05 .......................... 2,000,000 2,117,720 Honeywell International, Inc., 5.125% 11/01/06 .......................... 650,000 687,897 International Business Machines Corp.: 4.250% 09/15/09 .......................... 600,000 613,524 4.875% 10/01/06 .......................... 1,500,000 1,602,162 Kellogg Co., 6.000% 04/01/06 .......................... 1,250,000 1,355,918 Kerr-McGee Corp., 5.375% 04/15/05 .......................... 975,000 1,028,616 Lowe's Companies, Inc., 7.500% 12/15/05 .......................... 585,000 667,548 Nestle Holdings (UK) PLC, 5.000% 12/08/03 .......................... 1,000,000 1,031,450 Pepsi Bottling Holdings, Inc., 5.375% 02/17/04 (b) ...................... 1,750,000 1,822,100 Procter & Gamble Co., 4.750% 06/15/07 .......................... 725,000 778,133 Target Corp., 5.950% 05/15/06 .......................... 1,000,000 1,084,409 TCI Communications, Inc., 7.250% 08/01/05 .......................... 1,125,000 1,185,951 United Technologies Corp., 4.875% 11/01/06 .......................... 1,000,000 1,059,221 Verizon Global Funding Corp.: 6.750% 12/01/05 .......................... 2,000,000 2,211,578 Medium Term Notes, Series A, 7.600% 03/15/07 .......................... 600,000 684,903 Wal-Mart Stores, Inc.: 3.250% 09/29/03 .......................... 2,500,000 2,528,270 4.375% 07/12/07 .......................... 425,000 448,499 WellPoint Health Networks, Inc., 6.375% 06/15/06 .......................... 1,965,000 2,145,297 Wyeth, 6.250% 03/15/06 .......................... 550,000 597,979 ------------ 50,073,359 ------------ Financials (13.1%) American Express Co., 3.750% 11/20/07 .......................... 1,000,000 1,013,304 American General Finance Corp., 5.375% 09/01/09 .......................... 150,000 157,823 Associates Corp. of North America, 5.750% 11/01/03 .......................... 2,500,000 2,588,115 See Accompanying Notes to Financial Statements 98 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- Par Value - -------------------------------------------------------------------------------- AXA Financial, Inc., 9.000% 12/15/04 ........................ $ 700,000 $ 781,188 BankAmerica Corp., 7.625% 06/15/04 ........................ 675,000 729,207 CIT Group, Inc.: 7.250% 08/15/05 ........................ 125,000 132,620 7.625% 08/16/05 ........................ 65,000 69,972 Citigroup, Inc., 6.750% 12/01/05 ........................ 700,000 778,901 Countrywide Home Loans, Inc., 5.250% 06/15/04 ........................ 1,175,000 1,222,499 Ford Motor Credit Co., 6.875% 02/01/06 ........................ 3,825,000 3,834,314 General Electric Capital Corp.: 1.535% 03/15/05 ........................ 1,250,000 1,249,040 4.250% 01/15/08 ........................ 1,550,000 1,591,399 5.000% 02/15/07 ........................ 1,600,000 1,693,706 7.250% 05/03/04 ........................ 515,000 551,623 General Motors Acceptance Corp.: 6.750% 01/15/06 ........................ 2,500,000 2,590,813 Medium Term Notes, 5.250% 05/16/05 ........................ 850,000 853,428 Health Care Property Investors, Inc., 6.875% 06/08/05 (c) .................... 1,700,000 1,783,955 Household Finance Corp., 6.400% 06/17/08 ........................ 1,725,000 1,841,548 John Deere Capital Corp., 2.100% 09/17/04 ........................ 1,500,000 1,502,676 Lehman Brothers Holdings, Inc., 8.750% 03/15/05 ........................ 500,000 560,912 Merrill Lynch & Co., Inc., 4.540% 03/05/05 ........................ 2,350,000 2,449,889 Morgan Stanley, 5.800% 04/01/07 ........................ 1,600,000 1,737,222 SLM Corp., 5.625% 04/10/07 ........................ 3,000,000 3,265,866 U.S. Bancorp, 5.100% 07/15/07 ........................ 3,300,000 3,536,006 Wachovia Corp., 4.950% 11/01/06 ........................ 3,300,000 3,524,390 Washington Mutual, Inc., 5.625% 01/15/07 ........................ 1,650,000 1,767,330 Wells Fargo & Co.: 5.500% 08/25/32 ........................ 2,729,884 2,790,382 7.250% 08/24/05 ........................ 925,000 1,038,963 Wells Fargo Financial Inc., 7.000% 11/01/05 ........................ 2,180,000 2,444,739 ------------ 48,081,830 ------------ Utilities (3.5%) Constellation Energy Group, Inc., 6.350% 04/01/07 ........................ 1,750,000 1,841,919 FPL Group Capital, Inc.: 6.875% 06/01/04 ........................ 250,000 264,781 7.625% 09/15/06 ........................ 2,500,000 2,803,030 Kinder Morgan Energy Partners L.P., 8.000% 03/15/05 ........................ 500,000 551,509 Pepco Holdings, Inc., 5.500% 08/15/07(b) ..................... 1,600,000 1,672,224 Progress Energy, Inc., 5.850% 10/30/08 ........................ 1,625,000 1,722,921 Texas Eastern Transmission L.P., 5.250% 07/15/07 ........................ 850,000 873,899 Verizon Wireless Capital L.L.C., 1.810% 12/17/03 ........................ 2,000,000 1,986,438 Virginia Electric and Power Co., 5.375% 02/01/07 ........................ 1,200,000 1,272,574 ------------ 12,989,295 ------------ International (2.7%) Canadian Government Bond, 6.750% 08/28/06 ........................ 1,000,000 1,133,955 Canadian National Railway Co., 6.450% 07/15/06 (c) .................... 385,000 422,299 Morocco Government Bond, 1.423% 05/01/23 ........................ 500,000 495,000 Province of Ontario, 3.500% 09/17/07 ........................ 3,500,000 3,560,035 Quebec Province: 5.500% 04/11/06 ........................ 2,500,000 2,668,410 6.500% 01/17/06 ........................ 1,100,000 1,220,127 Spain Government International Bond, 7.000% 07/19/05 ........................ 275,000 307,311 ------------ 9,807,137 ------------ Total Corporate Notes & Bonds (Cost of $118,952,350) ................. 120,951,621 ------------ Other Securitized Loans (25.6%) Asset-Backed Securities (13.7%) Americredit Automobile Receivables Trust: Series 2000-1, Class B, 7.160% 09/05/05 ........................ 2,830,000 2,979,745 Series 2001-D, Class A4, 4.410% 11/12/08 ........................ 1,794,000 1,878,500 Chase Manhattan Auto Owner Trust, Series 2000-A, Class A4, 6.260% 06/15/07 ........................ 2,000,000 2,097,269 See Accompanying Notes to Financial Statements 99 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA SHORT TERM BOND FUND (CONT.) DECEMBER 31, 2002 Par Value - -------------------------------------------------------------------------------- Citibank Credit Card Issuance Trust, Series 2001-A8, Class A8, 4.100% 12/07/06 ........................... $ 2,000,000 $ 2,083,006 Discover Card Master Trust I, Series 2001-5, Class A, 5.300% 11/16/06 ........................... 2,000,000 2,097,596 Ford Credit Auto Owner Trust: Series 2000-C, Class A5, 7.260% 07/15/04 ........................... 1,000,000 1,032,263 Series 2002-B, Class A3A, 4.140% 12/15/05 ........................... 3,000,000 3,089,585 Green Tree Financial Corp., 7.900% 06/15/27 ........................... 423,541 461,445 Harley Davidson Motorcycle Trust, 3.090% 06/15/10 ........................... 1,525,000 1,556,599 Honda Auto Receivables Owner Trust: Series 2001-2, Class A4, 5.090% 10/18/06 ........................... 2,750,000 2,868,433 Series 2002-3, Class A3, 3.000% 05/18/06 ........................... 2,000,000 2,038,333 IMC Home Equity Loan Trust: Series 1995-3, Class A5, 7.500% 04/25/26 ........................... 1,312,000 1,311,387 Series 1997-3, Class A6, 7.520% 08/20/28 ........................... 995,794 1,044,267 Series 1997-3, Class A7, 7.080% 08/20/28 ........................... 480,407 501,864 Mellon Bank Home Equity Installment Loan Trust, Series 1998-1, Class A3, 6.320% 06/25/12 ........................... 53,121 53,132 Merit Securities Corp., Series 13, Class A4, 7.880% 12/28/33 ........................... 2,430,000 2,342,719 Money Store Home Equity Loan Trust, Series 1996-B, Class A7, 7.910% 12/15/27 ........................... 1,000,000 1,005,176 Nissan Auto Receivables Owner Trust, Series 2002-B, Class A4, 4.600% 09/17/07 ........................... 2,500,000 2,637,016 SLM Student Loan Trust: Series 1996-3, Class A2, 1.887% 10/25/09 ........................... 3,262,946 3,289,960 Series 1997-2, Class A2, 1.807% 01/25/10 (c) ....................... 1,733,527 1,740,650 Series 1997-3, Class A2, 1.847% 10/25/10 ........................... 4,475,014 4,502,030 Series 1997-4, Class A2, 1.957% 10/25/10 ........................... 2,250,000 2,268,840 Series 1998-1, Class A2, 1.967% 10/25/11 ........................... 2,450,000 2,472,557 Series 1998-2, Class A2, 1.937% 01/25/14 ........................... 240,000 242,561 Standard Credit Card Master Trust, Series 1993-2, Class A, 5.950% 10/07/04 ........................... 2,650,000 2,733,024 Toyota Auto Receivables Owner Trust, Series 2001-C, Class A4, 4.720% 09/15/08 ........................... 1,675,000 1,758,472 UCFC Home Equity Loan Trust, Series 1996-B, Class A7, 8.200% 09/15/27 ........................... 240,000 239,928 ----------- 50,326,357 ----------- Collateralized Mortgage Obligations (11.3%) Bear Stearns Asset Backed Securities, Inc., Series 2002-ACS, Class 2A4, 7.000% 08/25/36 ........................... 4,397,445 4,466,155 Citicorp Mortgage Securities, Inc., Series 1998-9, Class A10, 6.500% 10/25/28 ........................... 2,025,000 2,042,891 Countrywide Home Loans, Inc.: Series 2001-16, Class 1A10, 6.750% 10/25/31 ........................... 929,299 941,905 Series 2002-16, Class 1A1, 6.500% 09/25/32 ........................... 1,150,804 1,185,403 Impac Secured Assets Common Owner Trust, Series 2002-3, Class A2, 5.210% 08/25/32 ........................... 675,000 686,602 Master Asset Securitization Trust, Series 2002-2, Class 2A1, 6.500% 04/25/32 ........................... 1,434,272 1,469,168 Ocwen Residential MBS Corp., Series 1998-R1, Class A1, 7.000% 10/25/40 (b) ....................... 630,344 642,777 PNC Mortgage Securities Corp.: Series 1996-PR1, Class A, 5.956% 04/28/27 (b)(c) .................... 445,769 402,675 Series 1998-12, Class 4A5, 6.475% 01/25/29 ........................... 314,925 321,721 Series 1999-5, Class 2A6, 6.750% 07/25/29 ........................... 188,522 189,454 See Accompanying Notes to Financial Statements 100 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- Par Value - -------------------------------------------------------------------------------- Residential Asset Securities Corp., Series 2000-KS1, Class AI3, 7.735% 10/25/25 ......................... $ 98,916 $ 99,644 Residential Asset Securitization Trust: Series 1999-A1, Class A1, 6.750% 03/25/29 ......................... 928,437 950,462 Series 1999-A4, Class A1, 6.500% 03/25/29 ......................... 63,606 63,733 Series 2002-A1, Class A2, 5.350% 09/25/26 ......................... 1,200,000 1,211,112 Series 2002-A1, Class A4, 6.590% 01/25/30 ......................... 400,000 427,804 Series 2002-A5, Class A2, 5.820% 01/25/27 ......................... 7,250,000 7,430,057 Series 2002-A7, Class A2, 5.180% 01/25/27 ......................... 400,000 411,284 Series 2002-A14J, Class A14, 6.000% 01/25/33 ......................... 4,513,661 4,635,512 Residential Funding Mortgage Securities I, Inc.: Series 1999-S25, Class A1, 6.750% 12/25/14 ......................... 672,600 690,845 Series 2000-S2, Class A3, 7.500% 02/25/30 ......................... 942,705 963,230 Series 2002-S13, Class A3, 6.250% 10/25/32 ......................... 4,269,304 4,396,897 SACO I, Inc., Series 1997-2, Class 1A5, 7.000% 08/25/36 (b) ..................... 1,750,000 1,785,000 Structured Asset Mortgage Investments, Inc., Series 2002-3, Class 1A, 6.750% 07/28/28 ......................... 1,027,813 1,067,285 Structured Asset Securities Corp.: Series 1999-ALS2, Class A2, 6.750% 07/25/29 ......................... 472,903 477,684 Series 2001-2, Class 1A1, 6.500% 03/25/31 ......................... 172,478 173,303 Series 2002-17, Class 1A3, 6.000% 09/25/32 ......................... 4,019,277 4,119,466 University Support Services, Inc., Series 1993-A, Class B, 6.500% 08/20/08 ......................... 2,143 2,162 Washington Mutual Mortgage Securities Corp., Series 2001-MS10, Class 3A1, 6.500% 09/25/31 ......................... 199,922 201,576 ------------- 41,455,807 ------------- Commercial Mortgage-Backed Securities (0.6%) GMAC Commercial Mortgage Asset Corp., Series 2001-FLAA, Class B1, 1.920% 06/15/13 (b)(c) .................. 539,028 537,943 Merrill Lynch Mortgage Investors, Inc., Series 1996-C1, Class A3, 7.420% 04/25/28 ......................... 609,867 667,228 Nationslink Funding Corp., Series 1999-SL, Class A5, 6.888% 11/10/30 ......................... 870,000 980,131 ------------- 2,185,302 ------------- Total Other Securitized Loans (Cost of $91,033,719) ....................... 93,967,466 ------------- Short-Term Obligations (18.8%) U.S. Treasury Bill (1.6%) 1.175% 01/30/03 ........................... 6,000,000 5,994,636 ------------- Repurchase Agreement (17.2%) Repurchase agreement with State Street Bank & Trust Co., dated 12/31/02, due 01/02/03 at 1.050%, collateralized by U.S. Treasury Notes with various maturities to 08/15/11, market value of $64,520,678 (repurchase proceeds $63,250,689) (d) ............... 63,247,000 63,247,000 ------------- Total Short-Term Obligations (Cost of $69,239,758) ....................... 69,241,636 ------------- Total Investments (108.8%) (Cost of $392,820,830) (e) .................. 399,610,558 ------------- Other Assets & Liabilities, Net (-8.8%) ................................. (32,262,728) ------------- Net Assets (100.0%) ........................... $ 367,347,830 ============= Notes to Schedule of Investments: (a) This security has been purchased on a delayed delivery basis whereby the terms that are fixed are the purchase price, interest rate and settlement date. The exact quantity purchased may be slightly more or less than the amount shown. (b) This security is exempt from registration under Rule 144A of the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At December 31, 2002, the value of these securities amounted to $7,474,241 which represents 2.0% of net assets. (c) Variable rate security. The rate reported is the rate in effect at December 31, 2002. (d) A portion of this issue has been segregated to cover delayed delivery securities. (e) Cost for federal income tax purposes is $392,806,820. Acronym Name ------- ---- TBA To Be Announced See Accompanying Notes to Financial Statements 101 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA FIXED INCOME SECURITIES FUND DECEMBER 31, 2002 Par Value - -------------------------------------------------------------------------------- U.S. Government Securities (39.7%) U.S. Treasury Notes & Bonds (9.0%) U.S. Treasury Bonds: 6.250% 08/15/23 ............................... $14,605,000 $17,163,168 8.875% 08/15/17 ............................... 14,135,000 20,663,052 U.S. Treasury Inflation Index Note, 3.375% 01/15/07 ............................... 8,152,781 8,831,761 U.S. Treasury Note, 3.500% 11/15/06 ............................... 2,505,000 2,607,550 ----------- 49,265,531 ----------- U.S. Agency Bonds (11.4%) Federal Home Loan Bank, 5.375% 01/05/04 ............................... 13,110,000 13,658,549 Federal Home Loan Mortgage Corp., 5.000% TBA (a) ................................ 12,590,000 12,904,750 Federal National Mortgage Association, 5.000% TBA (a) ................................ 35,255,000 36,087,509 ----------- 62,650,808 ----------- Federal Home Loan Mortgage Corp. (FHLMC) (10.3%) 6.000% 05/01/17 - 10/01/32 .................... 40,915,079 42,545,332 6.500% 11/15/30 - 08/01/32 .................... 13,647,231 14,318,544 ----------- 56,863,876 ----------- Federal National Mortgage Association (FNMA) (2.8%) 6.000% 03/01/09 - 11/01/32 .................... 11,738,934 12,157,816 6.149% 07/01/32 ............................... 1,805,370 1,889,755 6.500% 07/01/32 - 08/01/32 .................... 1,478,824 1,540,946 ----------- 15,588,517 ----------- Federal Housing Administration (FHA) (0.6%) FHA Insured Project: Pool 067-22003, 8.200% 06/01/31 ............................... 1,129,750 1,170,353 Pool 071-94016, 8.625% 05/01/23 ............................... 2,137,482 2,299,075 ----------- 3,469,428 ----------- Agency Collateralized Mortgage Obligations (5.6%) FNMA Gtd. Remic Pass Thru Ctf.: Remic Tr. 1996-W2, Class A7, 7.800% 06/25/26 ............................... 1,000,000 1,077,569 Remic Tr. 2001-55, Class PC, 6.500% 10/25/31 ............................... 5,418,000 5,726,583 Remic Tr. 2001-56, Class KD, 6.500% 07/25/30 ............................... 4,540,000 4,791,294 FHLMC GNMA Multiclass Mtg. Partn. Ctfs. Gtd., Series 24, Class J, 6.250% 11/25/23 ............................... 2,310,000 2,474,195 FHLMC Multiclass Mtg. Partn. Ctfs. Gtd: Series 1558, Class C, 6.500% 07/15/23 ............................... 2,991,000 3,088,952 Series 1602, Class PJ, 6.500% 10/15/23 ............................... 100,000 110,701 Series 2065, Class PB, 6.250% 01/15/24 ............................... 976,126 988,799 Series 2085, Class PD, 6.250% 11/15/26 ............................... 4,871,000 5,045,158 Series 2113, Class MU, 6.500% 08/15/27 ............................... 2,480,000 2,582,349 Series 2235, Class VN, 7.000% 06/15/14 ............................... 4,680,000 5,009,787 ----------- 30,895,387 ----------- Total U.S. Government Securities (Cost of $209,501,546) ........................ 218,733,547 ----------- Corporate Notes & Bonds (32.4%) Industrial (17.1%) Advance PCS, 8.500% 04/01/08 ............................... 750,000 780,000 Alcan, Inc., 7.250% 03/15/31 ............................... 1,175,000 1,397,943 Alcoa, Inc.: 5.375% 01/15/13 ............................... 1,750,000 1,855,770 6.500% 06/15/18 ............................... 250,000 272,718 6.750% 01/15/28 ............................... 950,000 1,059,588 Allied Waste North America, Inc., 10.000% 08/01/09 .............................. 550,000 545,875 American Axle & Manufacturing, Inc., 9.750% 03/01/09 ............................... 600,000 643,500 American Home Products Corp., 6.250% 03/15/06 ............................... 2,000,000 2,174,470 AmerisourceBergen Corp., 8.125% 09/01/08 ............................... 500,000 532,500 Anadarko Finance Co., 7.500% 05/01/31 ............................... 2,610,000 3,113,485 Anheuser-Busch Companies, Inc., 5.750% 04/01/10 ............................... 3,500,000 3,846,728 Anthem, Inc., 6.800% 08/01/12 ............................... 1,550,000 1,689,556 AOL Time Warner, Inc., 7.975% 08/15/04 ............................... 1,950,000 2,051,755 AT&T Corp., 8.000% 11/15/31 ............................... 1,390,000 1,537,366 Ball Corp., 7.750% 08/01/06 ............................... 600,000 630,000 See Accompanying Notes to Financial Statements 102 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- Par Value - -------------------------------------------------------------------------------- BP Amoco PLC, 5.900% 04/15/09 ........................ $ 1,800,000 $ 2,006,429 British Sky Broadcasting Group, 7.300% 10/15/06 ........................ 200,000 208,000 Canadian National Railway Co., 7.195% 01/02/16 ........................ 1,906,913 2,167,769 Canandaigua Brands, Inc., 8.500% 03/01/09 ........................ 650,000 680,875 ChevronTexaco Capital Co., 3.500% 09/17/07 ........................ 2,010,000 2,048,282 Coca-Cola Enterprises, Inc., 6.750% 01/15/38 ........................ 1,000,000 1,122,818 Coors Brewing Co., 6.375% 05/15/12 ........................ 1,200,000 1,343,456 Costco Wholesale Corp., 5.500% 03/15/07 ........................ 1,900,000 2,046,469 Cott Beverages, Inc., 8.000% 12/15/11 ........................ 500,000 530,000 Cox Communications, Inc., 7.875% 08/15/09 ........................ 235,000 265,128 Cox Enterprises, Inc., 8.000% 02/15/07 (b) .................... 2,250,000 2,501,683 Cummins, Inc., 9.500% 12/01/10 (b) .................... 505,000 537,825 Devon Financing Corp., ULC, 6.875% 09/30/11 ........................ 1,650,000 1,840,926 Diageo Capital PLC, 3.500% 11/19/07 ........................ 4,750,000 4,779,517 Extended Stay America, Inc., 9.875% 06/15/11 ........................ 500,000 507,500 Grant Prideco, Inc., 9.000% 12/15/09 (b) .................... 435,000 452,400 Harrah's Operating Co., Inc., 7.875% 12/15/05 ........................ 500,000 530,000 Hasbro, Inc., 8.500% 03/15/06 ........................ 600,000 612,000 HCA, Inc., 6.910% 06/15/05 ........................ 500,000 525,378 Honeywell International, Inc., 7.500% 03/01/10 ........................ 2,650,000 3,101,239 International Business Machines Corp., 5.875% 11/29/32 ........................ 3,460,000 3,435,631 International Game Technology: 7.875% 05/15/04 ........................ 700,000 728,000 8.375% 05/15/09 ........................ 250,000 277,500 Iron Mountain, Inc., 8.625% 04/01/13 ........................ 1,000,000 1,045,000 ITT Corp., 6.750% 11/15/05 ........................ 600,000 600,000 KB Home, 8.625% 12/15/08 ........................ 1,000,000 1,035,000 L-3 Communications Corp., 7.625% 06/15/12 ........................ 285,000 293,550 Lamar Media Corp.: 7.250% 01/01/13 (b) .................... 150,000 152,438 8.625% 09/15/07 ........................ 500,000 522,500 Lear Corp., 7.960% 05/15/05 ........................ 600,000 615,750 Lowe's Companies, Inc., 6.500% 03/15/29 ........................ 1,200,000 1,287,740 Mediacom LLC, 9.500% 01/15/13 ........................ 750,000 675,000 Nextel Communications, Inc.: 9.750% 10/31/07 ........................ 300,000 277,500 10.650% 09/15/07 ....................... 200,000 191,000 Park Place Entertainment Corp., 9.375% 02/15/07 ........................ 1,000,000 1,067,500 Pennzoil-Quaker State Co., 10.000% 11/01/08 ....................... 325,000 403,000 Pepsi Bottling Holdings, Inc., 5.625% 02/17/09 (b) .................... 4,050,000 4,419,024 Phillips Petroleum Co., 8.500% 05/25/05 ........................ 3,200,000 3,640,778 Premier Parks, Inc., 9.750% 06/15/07 ........................ 500,000 485,000 Pride International, Inc., 9.375% 05/01/07 ........................ 500,000 522,500 Procter & Gamble Co., 4.750% 06/15/07 ........................ 1,950,000 2,092,910 Scotts Co., 8.625% 01/15/09 ........................ 350,000 369,250 Select Medical Corp., 9.500% 06/15/09 ........................ 500,000 517,500 Silgan Holdings, Inc., 9.000% 06/01/09 ........................ 500,000 521,250 Sinclair Broadcasting Group, Inc.: 8.000% 03/15/12 ........................ 380,000 396,150 8.000% 03/15/12 (b) .................... 60,000 62,550 Station Casinos, Inc.: 8.875% 12/01/08 ........................ 75,000 78,000 9.875% 07/01/10 ........................ 500,000 542,500 See Accompanying Notes to Financial Statements 103 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA FIXED INCOME SECURITIES FUND (CONT.) DECEMBER 31, 2002 Par Value - -------------------------------------------------------------------------------- TCI Communications, Inc., 7.250% 08/01/05 ........................... $ 2,700,000 $ 2,846,283 Teekay Shipping Corp., 8.875% 07/15/11 ........................... 875,000 897,969 Toll Corp., 7.750% 09/15/07 ........................... 600,000 591,000 Triad Hospitals, Inc., 8.750% 05/01/09 ........................... 500,000 535,625 United Rentals, Inc., 10.750% 04/15/08 .......................... 500,000 497,500 United Technologies Corp., 7.125% 11/15/10 ........................... 4,125,000 4,846,277 Verizon Global Funding Corp., 7.250% 12/01/10 ........................... 2,175,000 2,476,501 Vintage Petroleum, Inc., 9.750% 06/30/09 ........................... 325,000 338,000 Wal-Mart Stores, Inc., 4.375% 07/12/07 ........................... 2,350,000 2,479,934 Wellpoint Health Networks, Inc., 6.375% 06/15/06 ........................... 825,000 900,697 Westport Resources Corp., 8.250% 11/01/11 (b) ....................... 610,000 640,500 XTO Energy, Inc., 7.500% 04/15/12 ........................... 500,000 531,250 Yum! Brands, Inc., 8.500% 04/15/06 ........................... 500,000 531,250 ----------- 94,306,255 ----------- Financials (9.5%) American General Finance Corp., 5.375% 09/01/09 ........................... 850,000 894,331 Bank of America Corp.: 5.875% 02/15/09 ........................... 1,355,000 1,488,778 7.800% 02/15/10 ........................... 2,700,000 3,216,186 CIT Group, Inc., 7.250% 08/15/05 ........................... 970,000 1,029,133 Citigroup, Inc., 7.250% 10/01/10 ........................... 2,350,000 2,732,173 Equitable Companies, Inc., 9.000% 12/15/04 ........................... 2,475,000 2,762,058 Ford Motor Credit Co., 6.875% 02/01/06 ........................... 5,700,000 5,713,880 General Electric Capital Corp.: 4.250% 01/15/08 ........................... 915,000 939,439 6.000% 06/15/12 ........................... 4,065,000 4,396,850 6.750% 03/15/32 ........................... 665,000 737,691 General Motors Acceptance Corp., 5.250% 05/16/05 ........................... 2,600,000 2,610,486 Health Care Property Investors, Inc., 6.450% 06/25/12 ........................... 2,390,000 2,411,957 Health Care REIT, Inc., 7.500% 08/15/07 ........................... 500,000 527,742 Household Finance Corp., 6.400% 06/17/08 ........................... 2,550,000 2,722,288 RH Donnelley Financial Corp.: 8.875% 12/15/10 (b) ....................... 50,000 53,500 10.875% 12/15/12 (b) ...................... 360,000 392,400 SLM Corp., 5.125% 08/27/12 ........................... 3,900,000 4,007,476 US Bank N.A., 6.375% 08/01/11 ........................... 4,000,000 4,493,732 Wachovia Corp., 4.950% 11/01/06 ........................... 3,530,000 3,770,029 Washington Mutual, Inc., 5.625% 01/15/07 ........................... 2,505,000 2,683,128 Wells Fargo Financial, Inc., 4.875% 06/12/07 ........................... 4,175,000 4,447,030 ----------- 52,030,287 ----------- Utilities (3.5%) FPL Group Capital, Inc., 6.125% 05/15/07 ........................... 3,525,000 3,813,757 Hydro-Quebec, 6.970% 03/01/05 ........................... 1,000,000 1,100,846 Kinder Morgan Energy Partners L.P., 6.750% 03/15/11 ........................... 2,750,000 2,991,923 Pepco Holdings, Inc., 6.450% 08/15/12 (b) ....................... 2,550,000 2,705,119 Progress Energy, Inc., 7.750% 03/01/31 ........................... 2,115,000 2,412,663 Southern Power Co., 6.250% 07/15/12 ........................... 3,000,000 3,169,575 Texas Eastern Transmission Corp., 7.300% 12/01/10 ........................... 2,635,000 2,916,405 ----------- 19,110,288 ----------- International (2.3%) British Columbia Province, 5.375% 10/29/08 ........................... 1,900,000 2,094,875 Kingdom of Spain, 7.000% 07/19/05 ........................... 1,475,000 1,648,305 See Accompanying Notes to Financial Statements 104 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- Par Value - -------------------------------------------------------------------------------- Ontario Province: 3.500% 09/17/07 ........................... $ 3,825,000 $ 3,890,610 7.000% 01/30/07 ........................... 2,490,000 2,847,639 United Mexican States, 8.000% 09/24/22 ........................... 2,105,000 2,183,938 ------------ 12,665,367 ------------ Total Corporate Notes & Bonds (Cost of $165,786,803) .................... 178,112,197 ------------ Other Securitized Loans (18.9%) Asset-Backed Securities (8.6%) Cityscape Home Equity Loan Trust, Series 1997-4, Class A4, 7.440% 10/25/18 ........................... 1,532,750 1,673,954 ContiMortgage Home Equity Loan Trust, Series 1999-3, Class A6, 7.680% 12/25/29 ........................... 2,700,000 2,900,439 IMC Home Equity Loan Trust: Series 1995-3, Class A5, 7.500% 04/25/26 ........................... 1,980,000 1,979,075 Series 1997-3, Class A6, 7.520% 08/20/28 ........................... 4,075,095 4,273,460 Series 1997-5, Class A9, 7.310% 11/20/28 ........................... 5,840,000 6,200,530 Merit Securities Corp., Series 13, Class A4, 7.880% 12/28/33 ........................... 5,265,000 5,075,893 Nationslink Funding Corp., Series 1999-SL, Class A5, 6.888% 11/10/30 ........................... 2,470,000 2,782,671 New Century Home Equity Loan Trust, Series 1999-NCA, Class A7, 7.320% 07/25/29 ........................... 1,945,083 2,064,706 Oakwood Mortgage Investors, Inc., Series 2000-D, Class A4, 7.400% 07/15/30 ........................... 5,990,000 5,810,142 Salomon Brothers Mortgage Securities VII, Inc., Series 1998-AQ1, Class A5, 7.150% 06/25/28 ........................... 1,960,000 2,122,930 SLM Student Loan Trust, Series 1997-4, Class A2, 2.403% 10/25/10 (c) ....................... 12,250,000 12,352,574 ------------ 47,236,374 ------------ Collateralized Mortgage Obligations (8.3%) Bear Stearns Mortgage Securities, Inc., Series 1996-2, Class A1, 4.280% 01/28/25 (c) ....................... 1,650,546 1,615,148 CMC Securities Corp. IV, Series 1997-2, Class IA12, 7.250% 11/25/27 ........................... 1,382,476 1,401,354 Countrywide Home Loans, Inc., Series 2002-16, Class 1A1, 6.500% 09/25/32 ........................... 7,196,364 7,412,723 Credit Suisse First Boston Mortgage Securities Corp., Series 2001-11, Class 1A3, 7.000% 06/25/31 ........................... 1,369,785 1,405,238 IMPAC Secured Assets Common Owner Trust, Series 2002-3, Class A2, 5.210% 08/25/32 ........................... 3,150,000 3,204,141 Master Asset Securitization Trust, Series 2002-2, Class 2A1, 6.500% 04/25/32 ........................... 3,051,643 3,125,889 PNC Mortgage Securities Corp.: Series 1998-12, Class 4A4, 6.500% 01/25/29 ........................... 1,558,522 1,592,297 Series 1999-5, Class 2A6, 6.750% 07/25/29 ........................... 928,446 933,037 Residential Asset Securitization Trust: Series 2002-A1, Class A2, 5.350% 09/25/26 ........................... 3,220,000 3,249,817 Series 2002-A1, Class A4, 6.590% 01/25/30 ........................... 5,098,000 5,452,364 Series 2002-A5, Class A2, 5.820% 01/25/27 ........................... 4,984,000 5,107,780 Series 2002-A7, Class A2, 5.180% 11/25/27 ........................... 8,370,000 8,606,119 Structured Asset Securities Corp.: Series 1999-ALS2, Class A2, 6.750% 07/25/29 ........................... 1,465,224 1,480,038 Series 2001-12, Class 1A4, 5.800% 09/25/31 ........................... 1,267,868 1,287,818 ------------ 45,873,763 ------------ See Accompanying Notes to Financial Statements 105 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA FIXED INCOME SECURITIES FUND (CONT.) DECEMBER 31, 2002 Par Value - ------------------------------------------------------------------------------- Commercial Mortgage-Backed Securities (2.0%) Commercial Capital Access One, Inc., Series 3A, Class A2, 6.615% 11/15/28 (b) ..................... $ 6,960,000 $ 7,816,482 GMAC Commercial Mortgage Asset Corp., Series 2001-FLAA, Class B1, 1.920% 06/15/13 (b)(c) .................. 2,988,978 2,982,961 ------------- 10,799,443 ------------- Total Other Securitized Loans (Cost of $101,387,438) .................. 103,909,580 ------------- Short-Term Obligations (16.2%) U.S. Treasury Bill (1.2%) 1.140% 01/30/03 ......................... 6,400,000 6,394,432 ------------- Repurchase Agreement (15.0%) Repurchase agreement with State Street Bank & Trust Co., dated 12/31/02, due 01/02/03 at 1.050%, collateralized by U.S. Treasury Notes with maturities to 12/31/04, market value of $84,359,744 (repurchase proceeds $82,702,824) (d) ........................ 82,698,000 82,698,000 ------------- Total Short-Term Obligations (Cost of $89,092,432) ................... 89,092,432 ------------- Total Investments (107.2%) (Cost of $565,768,219) (e) .............. 589,847,756 ------------- Other Assets & Liabilities, Net (-7.2%) ....... (39,486,156) ------------- Net Assets (100.0%) ........................... $ 550,361,600 ============= Notes to Schedule of Investments: (a) This security, or a portion thereof, has been purchased on a delayed delivery basis whereby the terms that are fixed are the purchase price, interest rate and settlement date. The exact quantity purchased may be slightly more or less than the amount shown. (b) This security is exempt from registration under Rule 144A of the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At December 31, 2002, the value of these securities amounted to $22,716,882 which represents 4.1% of net assets. (c) Variable rate security. The rate reported is the rate in effect at December 31, 2002. (d) A portion of this issue has been segregated to cover delayed delivery securities. (e) Cost for federal income tax purposes is $566,773,688. Acronym Name ------- ---- TBA To Be Announced COLUMBIA NATIONAL MUNICIPAL BOND FUND DECEMBER 31, 2002 Par Value - -------------------------------------------------------------------------------- Municipal Bonds (96.7%) Alaska (2.9%) Industrial Development & Export Authority, Snettisham Hydroelectric Series 1: Pre-refunded, 5.500% 01/01/08 .............................. $ 5,000 $ 5,656 Unrefunded, 5.500% 01/01/08 .............................. 95,000 106,037 Municipal Bond Bank Authority, Series C, 5.500% 09/15/16 .............................. 100,000 109,370 Palmer Valley Hospital Association, 5.350% 12/01/12 .............................. 125,000 135,409 State Housing Finance Corp., Coll. First Series Veterans Mtg. A2, 6.000% 06/01/15 .............................. 115,000 121,226 -------- 477,698 -------- Arkansas (1.6%) Little Rock Waste Disposal Revenue, Ref & Import, Series 2002, 5.000% 05/01/16 .............................. 250,000 262,807 -------- California (1.6%) State Department of Water Resource, Power Supply Revenue, Series 2002, 5.000% 05/01/16 .............................. 250,000 268,450 -------- Colorado (0.3%) Housing Financial Authority Single Family, 4.875% 04/01/07 .............................. 55,000 57,092 -------- Georgia (0.9%) Municipal Electric Power Revenue, Series B, 5.500% 01/01/18 .............................. 150,000 150,000 -------- Idaho (1.8%) Boise City Housing Authority Revenue, Hobler Place Project, Series 2002, 4.750% 02/01/07 .............................. 180,000 180,083 Health Facilities Authority, Bingham Memorial Hospital Project, 5.850% 03/01/19 .............................. 100,000 97,496 See Accompanying Notes to Financial Statements 106 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- Par Value - -------------------------------------------------------------------------------- Student Loan Fund Marketing Association, Series C, 5.600% 04/01/07 ............................ $ 20,000 $ 20,605 ---------- 298,184 ---------- Illinois (8.8%) Broadview Tax Increment Revenue, 4.900% 07/01/06 ............................ 75,000 76,126 Chicago Housing Authority Capital, Series 2001, 5.375% 07/01/19 ............................ 250,000 258,155 Chicago Park District Aquarium & Museum, 5.800% 01/01/18 ............................ 150,000 166,803 Chicago Public Building Community Building Revenue, Chicago School Reform, Series 1999 B, 5.250% 12/01/16 ............................ 250,000 281,330 Lake County Community Unit School District 095, Lake Zurich, Capital Appreciation, Series 2000, (a) 12/01/17 ............................... 340,000 167,256 Madison & St. Clair Counties School, District 010 Collinsville School Building, 5.500% 02/01/12 ............................ 250,000 282,502 Regional Transportation Authority, Series A, 6.400% 06/01/12 ............................ 100,000 121,503 Will County Forest Preservation District, Series 1999 B, (a) 12/01/11 ............................... 150,000 105,333 ---------- 1,459,008 ---------- Indiana (3.8%) Board Bank Revenue, Special Prog, Hendricks, Series 2002 D, 5.375% 04/01/15 ............................ 250,000 275,390 Transportation Financial Authority, Airport Facilities, Series A, 5.500% 11/01/17 ............................ 100,000 105,524 West Lafayette Industrial Building Corp., First Mortgage, Police Station Project, 5.000% 07/15/18 ............................ 250,000 262,048 ---------- 642,962 ---------- Iowa (0.8%) Finance Authority Single Family Mortgage, Series A, 5.800% 07/01/16 ............................ 125,000 129,921 ---------- Kentucky (0.5%) Louisville & Jefferson County Visitors & Convention Commission, Series 1999 BBB, (a) 12/01/08 ............................... 100,000 78,307 ---------- Louisiana (3.3%) Calcasieu Parish School District No. 31, Public School Import, Series 2000, 5.500% 05/01/16 ............................ 250,000 272,435 State Gas & Fuels Tax Revenue, Series 2002 A, 5.250% 06/01/11 ............................ 250,000 279,745 ---------- 552,180 ---------- Maine (0.6%) Regional Waste System Industry Solid Waste Resource Recovery, Series Q, 5.500% 07/01/04 ............................ 100,000 105,553 ---------- Michigan (4.6%) Lansing Board Water & Light Water Supply Steam & Electric Utility System, Series A, 5.000% 07/01/15 ............................ 260,000 276,006 State Hospital Finance Authority, Ascension Health Credit, Series A: 5.375% 11/15/33 ............................ 100,000 109,886 6.000% 11/15/19 ............................ 100,000 108,878 Warren Downtown Development, Series 2002, 5.000% 10/01/16 ............................ 250,000 268,605 ---------- 763,375 ---------- Mississippi (2.3%) Development Bank, Convention Center Project, 6.500% 07/01/13 ............................ 230,000 280,998 Jones County Hospital, Refunding South Central Regional Medical Center, 4.900% 12/01/04 ............................ 100,000 103,919 ---------- 384,917 ---------- See Accompanying Notes to Financial Statements 107 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA NATIONAL MUNICIPAL BOND FUND (CONT.) DECEMBER 31, 2002 Par Value - -------------------------------------------------------------------------------- Montana (1.3%) Whitefish Tax Increment, Urban Renewal Revenue, 6.625% 07/15/20 ............................ $200,000 $214,482 -------- Nevada (1.7%) State Ref, Colorado River Common, Hoover, Series 2002, 5.375% 10/01/14 ............................ 250,000 278,447 -------- New York (3.3%) New York City, Series A, 6.000% 05/15/21 ............................ 250,000 270,495 New York City, Ambac Tcrs, Bny, Series 2000, 5.750% 08/01/11 ............................ 250,000 285,675 -------- 556,170 -------- North Dakota (1.6%) Fargo School District Building Authority Development, Series 2000, 5.500% 05/01/13 ............................ 250,000 274,235 -------- Ohio (2.5%) Oak Hills Local School District, 7.200% 12/01/09 ............................ 100,000 124,962 State Water Development Authority Revenue, Fresh Water, Series 2001 B, 5.500% 12/01/18 ............................ 250,000 289,000 -------- 413,962 -------- Oklahoma (1.4%) Okmulgee County, 1st Mortgage, 6.000% 03/01/15 ............................ 200,000 228,618 -------- Oregon (14.4%) Bend Municipal Airport Project, Series B, 5.375% 06/01/13 ............................ 100,000 108,393 Benton County Hospital Facilities Authority Refunding, Samaritan Health Services Project: 4.200% 10/01/05 ............................ 40,000 41,808 4.600% 10/01/09 ............................ 40,000 42,027 Clackamas County Limited Tax Assessment, 6.250% 05/01/15 ............................ 200,000 201,694 Damascus Water District, Certificates of Participation, 5.250% 03/01/19 ............................ 100,000 102,821 Deschutes County Hospital Facilities Authority, Cascade Health Services, Inc, Series 2002, 5.600% 01/01/27 ............................ 100,000 102,519 Eugene Trojan Nuclear Project, 5.900% 09/01/09 ............................ 30,000 30,146 Health Sciences University, Capital Appreciation Series 1996 A, (a) 07/01/16 ............................... 100,000 54,893 Hillsboro Hospital Facility Authority Refunding Tuality Healthcare, 5.250% 10/01/04 ............................ 100,000 103,998 Klamath Community College, District: 4.700% 04/01/10 ............................ 55,000 58,567 4.800% 04/01/11 ............................ 25,000 26,411 Lebanon Urban Renewal Agency, 5.625% 06/01/19 ............................ 100,000 103,646 Linn Benton Community College, Series 2001, (a) 06/15/15 ............................... 240,000 140,717 Port of St. Helens Pollution Control Portland General Electric Co., Series B, 4.800% 06/01/10 ............................ 105,000 96,226 Portland Community College District, Series 2001 B, 5.250% 06/01/12 ............................ 100,000 111,875 Portland Housing Authority, Pearl Court Apartments, 5.500% 01/01/03 ............................ 100,000 100,000 Redmond Urban Renewal Agency Downtown Area B, 5.650% 06/01/13 ............................ 100,000 102,387 Salem Hospital Facility Authority, Capital Manor, Inc., Series 1994, 7.500% 12/01/24 ............................ 150,000 155,559 School Boards Association, Flexfund Financing Program, Series E, 5.500% 06/01/05 ............................ 100,000 100,355 See Accompanying Notes to Financial Statements 108 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- Par Value - -------------------------------------------------------------------------------- State Housing & Community Services Department, Single Family Mortgage Program, Series B, 6.000% 07/01/12 ............................ $ 60,000 $ 63,372 State Veterans Welfare, Series 75, 5.875% 10/01/18 ............................ 25,000 25,985 Sunriver Library County Service District, 5.750% 06/01/04 ............................ 20,000 21,184 Washington & Clackamas Counties School District 23J Tigard, Series 2000, (a) 06/15/21 ............................... 300,000 118,782 Washington County Housing Authority: Affordable Housing Pool, Series A, 6.000% 07/01/20 ............................ 100,000 99,570 Multi-Family Tualatin Meadows, 5.900% 11/01/18 ............................ 100,000 105,138 West Linn Oregon Water System, 6.000% 10/01/20 ............................ 165,000 174,065 ---------- 2,392,138 ---------- South Carolina (1.6%) Charleston County School District, Series 2001, 5.000% 02/01/18 ............................ 250,000 263,670 ---------- South Dakota (0.9%) State Building Authority Lease Capital Appreciation, Series 1996 A, (a) 12/01/13 ............................... 250,000 158,590 ---------- Tennessee (5.6%) Lawrenceburg Public Building Authority Electric System Public Works, Series C, 5.500% 07/01/16 ............................ 295,000 325,760 Metropolitan Government Nashville, Series 2002 A, 5.125% 10/01/13 ............................ 285,000 316,099 Tennergy Corp. Gas Revenue, Series 1999, 5.000% 06/01/09 ............................ 260,000 288,475 ---------- 930,334 ---------- Texas (11.4%) Amarillo Health Facilities Corp, Baptist St. Anthonys Hospital Corp., 5.500% 01/01/13 ............................ 100,000 112,915 Cleburne Capital Appreciation Certificates Obligation, Series 1998, (a) 02/15/17 ............................... 450,000 212,962 Donna Independent School District, Series 2002, 5.000% 02/15/14 ............................ 250,000 270,990 Harris County Health Facilities de Teco Project, Series 1999 B, 5.700% 02/15/15 ............................ 150,000 168,784 Laredo Sports Venue Sales Tax, 5.750% 03/15/13 ............................ 200,000 223,296 Lubbock Health Facility Development, St. Josephs Health System, 5.250% 07/01/12 ............................ 150,000 157,936 Magnolia Independent School District, 5.250% 08/15/17 ............................ 280,000 302,585 North Texas Municipal Water District, Texas Water System Revenue, 5.000% 09/01/14 ............................ 250,000 267,997 West Harris County , Municipal Utility District 7 Capital Appreciation Refunding, (a) 03/01/09 ............................... 225,000 179,609 ---------- 1,897,074 ---------- Washington (11.4%) Jefferson County, Public Utility District 1 Water & Sewer: 5.250% 05/01/16 ............................ 50,000 51,977 5.250% 05/01/17 ............................ 50,000 51,837 King County Public Hospital District 4, Snoqualmie Valley Hospital, 7.000% 12/01/11 ............................ 150,000 157,212 Pierce County Housing Authority, 5.400% 12/01/13 ............................ 100,000 98,059 Port Of Grays Harbor, 6.375% 12/01/14 ............................ 150,000 167,182 Seattle Municipal Light & Power, 6.000% 10/01/16 ............................ 150,000 171,089 Shelton Water & Sewer, 5.250% 12/01/18 ............................ 50,000 52,018 See Accompanying Notes to Financial Statements 109 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA NATIONAL MUNICIPAL BOND FUND (CONT.) DECEMBER 31, 2002 Par Value - -------------------------------------------------------------------------------- State Certificate of Participation, Department, General Administration, 5.400% 07/01/13 ......................... $ 100,000 $ 108,636 State Health Care Facilities Authority Revenue, Grays Harbor Community Hospital, Series 1996, 5.700% 07/01/16 ......................... 200,000 216,146 State Public Power Supply System: Nuclear Project No. 1 Revenue, Series 1997 B, 5.125% 07/01/14 ......................... 300,000 318,765 Nuclear Project 2 Refunding, Series A, 5.000% 07/01/11 ......................... 50,000 53,775 Nuclear Project No. 3 Revenue, Capital Appreciation, Series 1989 B, (a) 07/01/12 ............................ 145,000 96,667 Tacoma Solid Waste Utilities Refunding, Series B, 6.000% 12/01/09 ......................... 100,000 117,737 Thurston County School District 401, Rochester, 4.800% 12/01/07 ......................... 55,000 55,491 Toppenish, 4.600% 12/01/06 ......................... 65,000 70,473 University Of Washington Educational Research Properties Lease, 4225 Roosevelt Project, Series A, 5.375% 06/01/29 ......................... 100,000 102,675 Yakima County School District 119 Selah, 5.000% 12/01/06 ......................... 10,000 11,069 ----------- 1,900,808 ----------- Wisconsin (5.1%) Door County, Corporate Purpose, Series 2002 A, 5.000% 09/01/13 ......................... 300,000 324,564 Marshall School District, Series 2002 A, 5.000% 03/01/14 ......................... 250,000 268,283 Middleton Promisory Notes, Series 2001, 4.400% 03/01/11 ......................... 250,000 261,288 ----------- 854,135 ----------- Wyoming (0.7%) Municipal Power Agency, Power Supply Refunding, Series 1998, 5.250% 01/01/11 ......................... 100,000 109,667 ----------- Total Municipal Bonds (Cost of $15,347,331) ..................... 16,102,784 Tax Exempt Money Market Investment (1.2%) Shares SEI Tax Exempt Trust, (Cost of $206,491) ...................... 206,491 206,491 ----------- Total Investments (97.9%) (Cost of $15,553,822) (b) ................. 16,309,275 ----------- Other Assets & Liabilities, Net (2.1%) ........ 349,980 ----------- Net Assets (100.0%) ........................... $16,659,255 =========== Notes to Schedule of Investments: (a) Zero coupon bond. (b) Cost for federal income tax purposes is $15,551,081. COLUMBIA OREGON MUNICIPAL BOND FUND DECEMBER 31, 2002 Par Value - -------------------------------------------------------------------------------- General Obligation Bonds (38.8%) State of Oregon General Obligations (6.5%) Board of Higher Education: 4.875% 08/01/19 ............................ $ 1,000,000 $ 1,030,970 Series A: 5.250% 08/01/14 ............................ 1,480,000 1,631,537 5.250% 08/01/16 ............................ 5,330,000 5,790,459 5.250% 08/01/18 ............................ 3,390,000 3,627,029 Deferred Interest, Series A: (a) 08/01/14 ............................... 490,000 300,953 (a) 08/01/17 ............................... 1,050,000 543,060 Elderly & Disabled Housing Refunding: Series B: 4.950% 08/01/20 ............................ 1,000,000 1,031,620 6.250% 08/01/13 ............................ 215,000 220,083 See Accompanying Notes to Financial Statements 110 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- Par Value - -------------------------------------------------------------------------------- Pollution Control, Series C, 5.900% 06/01/14 ......................... $ 170,000 $ 172,798 State of Oregon, Series A, 5.250% 10/15/15 ......................... 1,735,000 1,915,631 Veteran's Welfare: 5.850% 10/01/15 ......................... 730,000 764,690 7.250% 01/01/07 ......................... 1,530,000 1,816,232 7.300% 01/01/08 ......................... 445,000 539,798 7.300% 07/01/08 ......................... 1,170,000 1,435,894 8.000% 01/01/08 ......................... 1,275,000 1,585,998 8.000% 07/01/08 ......................... 580,000 731,328 8.250% 07/01/07 ......................... 540,000 670,577 9.200% 04/01/07 ......................... 2,390,000 3,041,084 9.200% 10/01/08 ......................... 385,000 513,983 Series 80 A, 5.700% 10/01/32 ......................... 5,300,000 5,704,602 ----------- 33,068,326 ----------- General Obligations (16.5%) Aurora, 5.600% 06/01/24 ......................... 1,205,000 1,230,703 Canyonville South Umpqua Rural Fire District, 5.400% 07/01/31 ......................... 610,000 624,664 Clackamas County: Lake Oswego Series: 5.375% 06/01/15 ......................... 2,450,000 2,683,411 5.375% 06/01/16 ......................... 1,295,000 1,406,810 5.375% 06/01/17 ......................... 2,535,000 2,750,145 School District 7J, Lake Oswego, Series A, 5.700% 06/15/10 ......................... 2,735,000 2,882,061 School District 62C, 5.375% 06/15/17 ......................... 4,000,000 4,319,160 School District 086, 6.000% 06/15/16 ......................... 2,350,000 2,690,867 School District 108, 5.375% 06/15/15 ......................... 1,055,000 1,163,074 Coos Bay, 4.900% 09/01/07 ......................... 2,390,000 2,635,190 Douglas County School District 4, Roseburg, 4.900% 12/15/11 ......................... 415,000 454,060 Eugene Public Safety Facilities: 5.500% 06/01/10 ......................... 850,000 930,631 5.625% 06/01/13 ......................... 1,295,000 1,421,755 Jackson County: School District 6, Central Point, 6.000% 06/15/09 ......................... 1,090,000 1,277,469 School District 9, Eagle Point, 5.625% 06/15/15 ......................... 1,920,000 2,142,125 Lane & Douglas Counties, School District 45J3: 6.000% 06/15/14 ......................... 1,000,000 1,187,730 6.000% 06/15/15 ......................... 1,100,000 1,306,503 6.000% 06/15/16 ......................... 1,230,000 1,460,908 6.000% 06/15/17 ......................... 1,375,000 1,633,129 Lane County School District 4J, Eugene Refunding: 5.000% 07/01/12 ......................... 2,470,000 2,731,622 5.250% 07/01/13 ......................... 1,000,000 1,126,880 Metro Washington Park Zoo, Series A, 5.300% 01/15/11 ......................... 1,000,000 1,069,150 Multnomah-Clackamas Counties, School District 10JT, Gresham, 5.250% 06/01/17 ......................... 1,620,000 1,682,710 Multnomah County Refunding, 4.300% 10/01/11 ......................... 10,000 10,402 Portland Community College District, Series A: 5.375% 06/01/14 ......................... 1,925,000 2,128,646 5.375% 06/01/16 ......................... 2,705,000 2,964,734 5.375% 06/01/17 ......................... 2,540,000 2,789,580 Portland Ltd. Tax, Series B: (a) 06/01/12 ............................ 1,750,000 1,202,583 (a) 06/01/13 ............................ 1,500,000 976,530 (a) 06/01/14 ............................ 1,000,000 618,510 (a) 06/01/16 ............................ 3,500,000 1,928,360 (a) 06/01/18 ............................ 4,000,000 1,959,520 (a) 06/01/19 ............................ 4,000,000 1,841,080 (a) 06/01/20 ............................ 4,000,000 1,723,480 Portland Parks Refunding, Series A, 5.000% 06/01/15 ......................... 3,950,000 4,206,276 Portland Public Improvement, Series A, 5.750% 06/01/14 ......................... 850,000 885,071 Salem-Keizer School District 24J, 5.000% 06/01/19 ......................... 3,500,000 3,645,285 Washington & Clackamas Counties, Deferred Interest, Series A, (a) 06/01/10 ............................ 1,520,000 1,154,288 School District 23J, Tigard: (a) 06/15/18 ............................ 2,700,000 1,306,395 (a) 06/15/24 ............................ 2,075,000 703,674 Washington County: 5.500% 06/01/16 ......................... 2,785,000 3,054,115 Refunding, Criminal Justice Facilities, 5.000% 12/01/10 ......................... 1,400,000 1,509,074 See Accompanying Notes to Financial Statements 111 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA OREGON MUNICIPAL BOND FUND (CONT.) DECEMBER 31, 2002 Par Value - -------------------------------------------------------------------------------- Washington County School District 48J, Beaverton: 5.125% 01/01/14 ......................... $ 2,000,000 $ 2,164,220 5.125% 01/01/17 ......................... 1,820,000 1,924,614 5.125% 01/01/18 ......................... 2,260,000 2,374,266 Washington, Multnomah & Yamhill Counties School District 1J: 5.000% 11/01/13 ......................... 1,375,000 1,527,501 5.250% 06/01/14 ......................... 500,000 541,695 ----------- 83,950,656 ----------- Insured General Obligations (15.8%) Chemeketa Community College District, Series B, 5.600% 06/01/14 ......................... 1,180,000 1,306,166 Clackamas Community College: 5.250% 06/15/15 ......................... 1,500,000 1,640,295 5.250% 06/15/18 ......................... 1,560,000 1,673,412 Clackamas County, School District 12, North Clackamas: 5.250% 06/01/11 ......................... 1,000,000 1,100,130 5.250% 06/01/15 ......................... 2,750,000 2,951,795 Columbia County, School District 502, Deferred Interest: (a) 06/01/12 ............................ 1,530,000 1,052,379 (a) 06/01/13 ............................ 1,685,000 1,103,709 (a) 06/01/14 ............................ 1,025,000 636,812 Coos County School District 13, North Bend, 5.500% 06/15/15 ......................... 1,765,000 1,988,484 Deschutes County School District 1, Series A, 5.500% 06/15/18 ......................... 1,000,000 1,094,040 Jefferson County School District 509J, Madras School District, 5.250% 06/15/18 ......................... 1,075,000 1,160,860 Josephine County School District 7, Grants Pass, 5.700% 06/01/13 ......................... 2,000,000 2,232,600 Lane & Douglas Counties: School District 45J3: 4.450% 06/15/18 ......................... 1,615,000 1,635,333 6.000% 06/15/13 ......................... 1,610,000 1,912,245 School District 97J, 5.300% 06/15/15 ......................... 1,155,000 1,247,585 Lane County School District 19, Springfield Refunding: 6.000% 10/15/12 ......................... 1,740,000 2,084,033 6.000% 10/15/14 ......................... 1,310,000 1,567,402 Lincoln County School District, 5.600% 06/15/10 ......................... 3,480,000 3,953,941 Linn Benton Community College: (a) 06/15/13 ............................ 1,000,000 653,990 (a) 06/15/14 ............................ 1,000,000 618,890 (a) 06/15/16 ............................ 1,000,000 550,010 Linn County Community School District 9, Lebanon: (a) 06/15/15 ............................ 710,000 735,936 (a) 06/15/21 ............................ 2,000,000 2,021,040 Marion County Certificates of Participation, Courthouse Square Project, Series A, 4.400% 06/01/10 ......................... 430,000 458,599 Marion County School District 103C, Woodburn, Series B: (a) 11/01/09 ............................ 2,500,000 1,987,375 (a) 11/01/11 ............................ 2,210,000 1,577,410 Multnomah-Clackamas Counties Centennial, School District 28-302: 5.375% 06/15/16 ......................... 2,055,000 2,250,040 5.375% 06/15/17 ......................... 2,280,000 2,479,363 5.375% 06/15/18 ......................... 2,490,000 2,692,960 Multnomah County: School District 7, Reynolds: 5.000% 06/15/18 ......................... 1,000,000 1,106,620 5.625% 06/15/17 ......................... 1,000,000 1,044,240 School District 40, 5.000% 02/01/14 ......................... 1,790,000 1,921,762 Northern Oregon Corrections: 5.250% 09/15/12 ......................... 1,000,000 1,079,650 5.300% 09/15/13 ......................... 1,000,000 1,084,520 Salem-Keizer School District 24J: 5.000% 06/01/15 ......................... 1,000,000 1,064,010 5.000% 06/01/16 ......................... 1,000,000 1,058,760 State Department Administrative Services, Certificate of Participation Refunding: Series A: 4.500% 05/01/12 ......................... 1,020,000 1,079,313 5.000% 05/01/13 ......................... 4,240,000 4,561,265 5.000% 05/01/14 ......................... 1,000,000 1,068,200 Series C, 5.250% 11/01/17 ......................... 4,000,000 4,357,800 See Accompanying Notes to Financial Statements 112 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- Par Value - -------------------------------------------------------------------------------- Tillamook County, 5.700% 01/15/16 ........................ $ 700,000 $ 795,032 Tillamook County Refunding, 4.600% 01/15/15 ........................ 810,000 857,401 Washington & Clackamas Counties School District 23J, Tigard: 5.375% 06/15/17 ........................ 1,500,000 1,644,105 5.375% 06/15/20 ........................ 2,435,000 2,623,469 Washington County: School District 15, Forest Grove: 5.250% 06/01/10 ........................ 1,000,000 1,131,480 5.375% 06/15/13 ........................ 2,070,000 2,315,191 5.375% 06/15/15 ........................ 2,515,000 2,772,637 School District 48J, Beaverton: 5.100% 06/01/12 ........................ 500,000 540,715 5.250% 08/01/10 ........................ 1,150,000 1,262,390 School District 088J, Sherwood Unrefunded, 6.100% 06/01/12 ........................ 185,000 202,018 Yamhill County, School District 40, 6.000% 06/01/09 ........................ 500,000 588,380 ------------ 80,525,792 ------------ Total General Obligations Bonds (Cost of $185,841,284) ..................... 197,544,774 ------------ Revenue Bonds (55.7%) Oregon Revenue (36.7%) Albany Hospital Facility Authority, Mennonite Home, 5.625% 10/01/17 ........................ 635,000 593,744 Bend Municipal Airport Project, Series B (AMT), 5.375% 06/01/13 ........................ 150,000 162,590 Benton County Hospital Facilities Authority, Refunding Samaritan Health Services Project: 4.400% 10/01/07 ........................ 220,000 230,859 4.800% 10/01/11 ........................ 245,000 257,056 5.200% 10/01/17 ........................ 2,255,000 2,301,047 Clackamas County Hospital Facility Authority: Kaiser Permanente, Series A, 5.375% 04/01/14 ........................ 7,085,000 7,446,406 Legacy Health System: 4.600% 05/01/10 ........................ 885,000 925,887 5.000% 02/15/15 ........................ 1,510,000 1,560,645 5.000% 02/15/16 ........................ 1,010,000 1,034,432 5.375% 02/15/12 ........................ 3,135,000 3,386,019 5.500% 02/15/13 ........................ 2,385,000 2,550,090 5.500% 02/15/14 ........................ 5,450,000 5,872,866 5.750% 05/01/12 ........................ 2,000,000 2,244,300 Legacy Health System Refunding: 5.250% 05/01/21 ........................ 1,500,000 1,522,680 5.750% 05/01/16 ........................ 1,500,000 1,622,370 Robison Jewish Home Project, 6.250% 10/01/21 ........................ 1,650,000 1,656,567 Refunding Odd Fellows Home, Series A: 5.700% 09/15/13 ........................ 600,000 602,898 5.875% 09/15/21 ........................ 1,190,000 1,145,589 Willamette Falls Hospital Project: 5.750% 04/01/14 ........................ 1,005,000 1,028,216 6.000% 04/01/19 ........................ 1,750,000 1,778,420 Willamette View, Inc. Project: 6.000% 11/01/08 ........................ 670,000 682,415 Series A, 6.850% 11/01/15 ........................ 1,580,000 1,685,781 Clackamas County Housing Authority, Multifamily Housing, Easton Ridge, Series A, 5.800% 12/01/16 ........................ 2,255,000 2,338,322 Clatsop Care Center Health District, Senior Housing, 6.875% 08/01/28 ........................ 500,000 505,025 Deschutes County Hospital Facilities Authority: 5.750% 01/01/09 ........................ 1,670,000 1,743,630 Cascade Health Services, Inc.: 5.500% 01/01/22 ........................ 2,000,000 2,046,280 5.600% 01/01/27 ........................ 5,550,000 5,689,804 5.600% 01/01/32 ........................ 3,000,000 3,064,770 Deschutes Valley Water District, 5.875% 09/01/05 ........................ 2,315,000 2,542,426 Eugene Airport Refunding (AMT): 5.650% 05/01/06 ........................ 325,000 350,935 5.650% 05/01/07 ........................ 555,000 604,517 5.700% 05/01/08 ........................ 515,000 561,829 Hillsboro Hospital Facility Authority Tuality Healthcare, 5.750% 10/01/12 ........................ 3,810,000 3,926,891 See Accompanying Notes to Financial Statements 113 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA OREGON MUNICIPAL BOND FUND (CONT.) DECEMBER 31, 2002 Par Value - -------------------------------------------------------------------------------- Lebanon Urban Renewal Agency, 5.625% 06/01/19 ........................ $ 1,000,000 $ 1,036,460 Lebanon Wastewater Refunding, 5.750% 06/01/11 ........................ 1,225,000 1,260,158 Multnomah County Educational Facilities, University of Portland Project, 5.700% 04/01/15 ........................ 1,000,000 1,077,210 Myrtle Point Water, 6.000% 12/01/20 ........................ 510,000 538,545 North Clackamas Parks & Recreation District Facilities, 5.700% 04/01/13 ........................ 2,920,000 3,324,916 Northern Wasco County, People's Utility District Electric: (a) 02/01/06 ........................... 610,000 544,974 (a) 02/01/07 ........................... 585,000 485,919 (a) 02/01/08 ........................... 610,000 470,371 (a) 02/01/11 ........................... 500,000 308,660 Oregon Department of Transportation, Highway User Tax, Series A: 5.125% 11/15/26 ........................ 300,000 311,013 5.500% 11/15/16 ........................ 2,500,000 2,795,450 Oregon Health, Housing Educational & Cultural Facilities Authority: Authority/Aquarium: 4.750% 10/01/08 ........................ 1,550,000 620,000 4.900% 10/01/09 ........................ 670,000 268,000 Goodwill Industries Lane County, Series A, 6.650% 11/15/22 ........................ 3,955,000 3,980,747 Linfield College Project, Series A: 4.550% 10/01/08 ........................ 525,000 555,261 4.650% 10/01/09 ........................ 555,000 583,433 5.500% 10/01/18 ........................ 1,000,000 1,044,100 Reed College Project, Series A, 5.300% 07/01/11 ........................ 500,000 536,100 Oregon Housing & Community Services: Department Mortgage Single Family Program: Series A (AMT), 6.200% 07/01/27 ........................ 2,915,000 3,028,248 Series D, 6.700% 07/01/13 ........................ 1,000,000 1,000,800 Department Housing Finance Assisted Insured Multi-Unit B, 6.800% 07/01/13 ........................ 8,360,000 8,368,276 Department Mortgage Single Family Program: Series A, 4.850% 07/01/10 ........................ 285,000 300,706 Series F (AMT), 5.650% 07/01/28 ........................ 1,190,000 1,211,944 Series F MBIA-IBC (AMT), 5.650% 07/01/28 ........................ 895,000 911,504 Series E, 5.375% 07/01/21 ........................ 3,885,000 4,003,687 Series L (AMT), 5.900% 07/01/31 ........................ 4,085,000 4,185,818 Mountain Shadows Apts. B-1, 6.250% 12/01/05 ........................ 4,000,000 4,051,840 Oregon Housing Financial, 5.800% 07/01/09 ........................ 250,000 250,260 Oregon State Economic Development, Dove Lewis 24 Hour Emergency Animal Hospital, 7.000% 12/01/19 ........................ 1,425,000 1,498,416 Oregon State Health Housing Educational & Cultural Facilities Authority, St. Anthony VillageHousing, Series A (AMT), 7.250% 06/01/28 ........................ 1,400,000 1,410,696 Oregon State Housing & Community Services: Department Multifamily Housing, Series B (AMT), 6.000% 07/01/31 ........................ 6,935,000 7,202,344 Department Single Family Mortgage Program: Series B (AMT), 5.250% 07/01/30 ........................ 925,000 920,995 Series E: 5.700% 07/01/12 ........................ 1,080,000 1,158,278 5.800% 07/01/14 ........................ 960,000 1,008,269 6.000% 07/01/20 ........................ 2,675,000 2,818,193 Series G (AMT), 5.700% 07/01/32 ........................ 1,250,000 1,271,625 Series H (AMT), 5.500% 07/01/17 ........................ 1,855,000 1,895,532 Series J, 5.150% 07/01/24 ........................ 2,840,000 2,832,644 Series L, 6.050% 07/01/20 ........................ 2,315,000 2,433,829 See Accompanying Notes to Financial Statements 114 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- Par Value - -------------------------------------------------------------------------------- Series M (AMT), 5.800% 07/01/12 .......................... $ 740,000 $ 794,020 Series Q: 4.700% 07/01/15 .......................... 820,000 823,985 4.900% 07/01/17 .......................... 805,000 798,407 Port Morrow, 6.700% 06/01/20 .......................... 2,000,000 2,044,180 Port of St. Helens: 5.600% 08/01/14 .......................... 315,000 320,960 5.750% 08/01/19 .......................... 425,000 433,466 Port of St. Helens Pollution Control, Portland General Electric Co: Series A, 4.800% 04/01/10 .......................... 5,195,000 4,766,568 Series B, 4.800% 06/01/10 .......................... 3,500,000 3,207,540 Portland Housing Authority, Multifamily Housing Senior Lien Civic Apartments, Series A, 5.600% 01/01/18 .......................... 1,240,000 1,286,302 Portland Housing Authority Refunding Pool Housing, Series A, 4.500% 01/01/09 .......................... 660,000 691,363 Portland Hydroelectric Power, 6.800% 10/01/04 .......................... 465,000 466,930 Portland Sewer System Revenue Refunding, Series A, 5.000% 06/01/12 .......................... 4,835,000 5,161,024 Powell Valley Water District, 6.000% 02/01/15 .......................... 620,000 658,186 Prineville Sewer First Lien, 6.500% 07/01/04 .......................... 265,000 282,053 Redmond Urban Renewal Agency: Downtown Area B: 5.650% 06/01/13 .......................... 720,000 737,186 5.850% 06/01/19 .......................... 785,000 804,460 Refunding South Airport, Industrial Area A, 5.700% 06/01/19 .......................... 650,000 651,099 Reedsport Water, 7.000% 10/01/14 .......................... 520,000 545,511 Salem Hospital Facility Authority: 5.000% 08/15/18 .......................... 2,000,000 2,003,680 5.250% 08/15/14 .......................... 2,900,000 3,032,240 Capital Manor, Inc., 7.500% 12/01/24 .......................... 905,000 938,539 Sheridan Water: 6.200% 05/01/15 .......................... 625,000 676,831 6.450% 05/01/20 .......................... 520,000 561,408 Sheridan Water Refunding, 5.350% 04/01/18 .......................... 300,000 311,097 South Fork water Board First Lien, 5.450% 02/01/14 .......................... 1,300,000 1,331,408 State of Oregon French American International School Project, Series A, 6.250% 04/01/27 .......................... 5,465,000 5,579,164 Umatilla County Hospital Facility Authority, Catholic Health Initiatives, Series A: 5.750% 12/01/20 .......................... 530,000 554,168 6.000% 12/01/30 .......................... 4,825,000 5,113,197 Veneta Urban Renewal Agency: 5.375% 02/15/16 .......................... 700,000 729,204 5.625% 06/15/21 .......................... 1,100,000 1,129,898 Washington County Housing Authority: Affordable Housing: Series A: 6.000% 07/01/20 .......................... 2,000,000 1,991,400 6.000% 07/01/23 .......................... 1,745,000 1,726,730 Affordable Housing Pool, Series A: 5.750% 07/01/23 .......................... 340,000 330,439 6.000% 07/01/23 .......................... 1,000,000 994,040 Multifamily Bethany Meadows Project (AMT), 6.250% 08/01/10 .......................... 775,000 775,821 ------------ 187,423,031 ------------ Insured Revenue (19.0%) Clackamas County Hospital Facility, Legacy Health System, MBIA IBC, 5.500% 02/15/13 .......................... 495,000 546,683 Emerald Peoples Utilities District: 7.200% 11/01/06 .......................... 630,000 747,816 7.350% 11/01/10 .......................... 2,160,000 2,743,783 7.350% 11/01/11 .......................... 2,000,000 2,565,040 7.350% 11/01/12 .......................... 2,490,000 3,236,477 7.350% 11/01/13 .......................... 2,675,000 3,504,678 Eugene Electric Utilities System: 4.750% 08/01/13 .......................... 1,000,000 1,023,000 Refunding Series B, 5.250% 08/01/13 .......................... 1,040,000 1,155,326 Series B: 4.550% 08/01/10 .......................... 600,000 600,540 4.650% 08/01/11 .......................... 375,000 375,311 5.000% 08/01/18 .......................... 1,000,000 1,000,650 5.000% 08/01/23 .......................... 525,000 525,247 See Accompanying Notes to Financial Statements 115 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA OREGON MUNICIPAL BOND FUND (CONT.) DECEMBER 31, 2002 Par Value - -------------------------------------------------------------------------------- Marion County Certificates of Participation, Courthouse Square Project, Series A, 4.600% 06/01/12 ........................... $ 355,000 $ 375,310 Medford Hospital Facilities Authority, Asante Health System, Series A: 5.250% 08/15/08 ........................... 1,645,000 1,845,279 5.250% 08/15/10 ........................... 1,500,000 1,661,640 5.250% 08/15/11 ........................... 800,000 877,576 Multnomah County Educational Facilities Refunding, University of Portland Project: 5.000% 04/01/11 ........................... 1,150,000 1,239,516 5.750% 04/01/10 ........................... 2,000,000 2,263,640 Ontario Catholic Health Holy Rosary Medical Center, 5.500% 11/15/12 ........................... 1,500,000 1,641,645 Oregon Department of Administrative Services, Certificates of Participation: Series A, 5.300% 05/01/08 ........................... 750,000 836,018 Series B, 5.000% 11/01/13 ........................... 1,000,000 1,070,390 Series C, 5.800% 03/01/15 ........................... 840,000 845,284 Oregon Economic Community Development Department, Series A, 5.375% 01/01/11 ........................... 1,105,000 1,221,611 Oregon Health, Housing, Educational & Cultural Facilities Authority: Reed College Project, Series A, 5.100% 07/01/10 ........................... 900,000 1,007,451 Lewis & Clark College, 6.000% 10/01/13 ........................... 965,000 1,050,026 Oregon Health Sciences University Capital Appreciation Insured, Series A, (a) 07/01/21 .............................. 12,285,000 4,941,887 Oregon Health Sciences University, Series A: (a) 07/01/09 .............................. 1,530,000 1,229,921 (a) 07/01/12 .............................. 1,315,000 905,719 (a) 07/01/14 .............................. 2,495,000 1,544,729 (a) 07/01/15 .............................. 4,325,000 2,531,033 Oregon Housing & Community Services Department, Single Family Mortgage Project, Series J (AMT), 5.750% 07/01/29 ........................... 8,495,000 8,679,087 Oregon State Department Administrative Services, Lottery Education Project: 5.250% 04/01/13 ........................... 1,600,000 1,746,688 Series A: 5.000% 04/01/14 ........................... 2,705,000 2,911,310 5.250% 04/01/11 ........................... 4,000,000 4,423,240 Port of Portland International Airport: Refunding Series 12B, 5.250% 07/01/12 ........................... 1,000,000 1,089,320 Series 11 (AMT), 5.625% 07/01/13 ........................... 1,000,000 1,066,760 Series 12C (AMT): 4.750% 07/01/10 ........................... 2,900,000 3,060,370 5.000% 07/01/13 ........................... 1,000,000 1,047,980 5.000% 07/01/14 ........................... 1,750,000 1,822,117 Portland Arena Gas Tax: (a) 06/01/16 .............................. 1,100,000 514,426 (a) 07/01/17 .............................. 2,320,000 1,011,891 Portland Gas Tax, Series A, 5.800% 06/01/16 ........................... 1,640,000 1,811,495 Portland Housing Authority, Multifamily Housing, Lovejoy Station Apartments Project (AMT), 5.900% 07/01/23 ........................... 1,000,000 1,052,560 Portland Urban Renewal & Redevelopment, South Park Blocks, Series A: 5.750% 06/15/17 ........................... 2,065,000 2,325,417 5.750% 06/15/19 ........................... 2,580,000 2,896,463 Salem Water & Sewer, 5.300% 06/01/15 ........................... 1,500,000 1,629,960 Tri-County Metropolitan Transportation District, Series 1, 5.400% 06/01/19 ........................... 4,200,000 4,326,672 Tualatin Hills Park & Recreation District, 5.750% 03/01/14 ........................... 990,000 1,149,172 Washington County Housing Authority Multifamily Tualatin Meadows (AMT), 5.900% 11/01/18 ........................... 995,000 1,046,123 Washington County Unified Sewer Agency: 5.500% 10/01/16 ........................... 1,250,000 1,334,600 Series A, (a) 10/01/07 .............................. 4,835,000 4,254,220 See Accompanying Notes to Financial Statements 116 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- Par Value - -------------------------------------------------------------------------------- Western Lane Hospital District Facility Authority Refunding, Sisters St. Joseph Peace, 5.625% 08/01/07 ........................ $ 2,460,000 $ 2,643,565 ------------ 96,956,662 ------------ Total Revenue Bonds (Cost of $272,734,548) ................... 284,379,693 ------------ Pre-Refunded Bond (0.1%) Oregon City Sewer, 6.500% 10/01/07 (Cost of $497,028) ................... 500,000 554,390 ------------ Other Bonds (3.0%) Hood River Urban Renewal Agency, 6.250% 12/15/11 ........................ 1,250,000 1,368,988 Lebanon Special Obligation Refunding Lease Water, 5.400% 10/01/13 ........................ 755,000 776,125 Lebanon Urban Renewal Agency: 5.750% 06/01/15 ........................ 1,120,000 1,178,475 6.000% 06/01/20 ........................ 1,580,000 1,663,708 Medford Urban Renewal, 5.875% 09/01/10 ........................ 500,000 538,760 Multnomah County Certificate of Participation, 4.550% 08/01/10 ........................ 1,000,000 1,068,070 Oregon State Department of Administrative Services, Certificates of Participation Refunding, Series B: 5.250% 05/01/10 ........................ 840,000 949,318 5.250% 05/01/11 ........................ 2,000,000 2,252,740 Portland Airport Way Urban Renewal & Redevelopment Convention Center, Unrefunded Balance, Series L: 5.750% 06/15/17 ........................ 1,500,000 1,689,165 5.750% 06/15/18 ........................ 2,050,000 2,301,453 Seaside Urban Renewal Agency Greater Seaside Urban Renewal, 5.250% 06/01/15 ........................ 1,000,000 1,031,490 Wilsonville Limited Tax Improvement, 5.000% 12/01/20 ........................ 445,000 448,551 ------------ Total Other Bonds (Cost of $14,353,159) .................. 15,266,843 ------------ U.S. Territories Bonds (0.6%) Guam Housing Corporation Single Family Mortgage-Backed Securities, Series A (AMT), 5.750% 09/01/31 ........................ 175,000 182,815 Puerto Rico Housing Finance Corp., Multi-Family Mortgage Portfolio A-1, 7.500% 04/01/22 ........................ 1,175,000 1,187,925 Virgin Islands Public Finance Authority, Unrefunded Balance, Series A, 7.300% 10/01/18 ........................ 1,185,000 1,551,746 ------------ Total U.S. Territories Bonds (Cost of $2,730,673) ................... 2,922,486 ------------ Tax Exempt Money Market Investment (1.1%) Shares SEI Tax Exempt Trust, (Cost of $5,845,801) ................... 5,845,801 5,845,801 ------------ Total Investments (99.3%) (Cost of $482,002,493) (b) ............. 506,513,987 ------------ Other Assets & Liabilities, Net (0.7%) ....... 3,648,981 ------------ Net Assets (100.0%) .......................... $510,162,968 ============ Notes to Schedule of Investments: (a) Zero coupon bond. (b) Cost for federal income tax purposes is $481,888,273. Acronym Name ------- ---- AMT Alternative Minimum Tax COLUMBIA HIGH YIELD FUND DECEMBER 31, 2002 Par Value - -------------------------------------------------------------------------------- Corporate Notes & Bonds (85.6%) Aerospace & Defense (1.8%) K&F Industries, 9.625% 12/15/10 (a) .................... $ 6,000,000 $ 6,105,000 L-3 Communications Corp., 7.625% 06/15/12 ........................ 7,250,000 7,467,500 ----------- 13,572,500 ----------- Automotive & Auto Parts (6.3%) American Axle & Manufacturing, Inc., Senior Subordinate Notes, 9.750% 03/01/09 ........................ 12,400,000 13,299,000 Cummins, Inc., 9.500% 12/01/10 (a) .................... 13,480,000 14,356,200 Ford Motor Credit Co., 6.875% 02/01/06 ........................ 7,500,000 7,518,263 See Accompanying Notes to Financial Statements 117 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA HIGH YIELD FUND (CONT.) DECEMBER 31, 2002 Par Value - -------------------------------------------------------------------------------- Lear Corp., Series B: 7.960% 05/15/05 ........................ $ 5,250,000 $ 5,387,812 8.110% 05/15/09 ........................ 7,500,000 7,931,250 ----------- 48,492,525 ----------- Broadcasting (1.5%) Sinclair Broadcasting Group, Inc., 8.000% 03/15/12 ........................ 11,210,000 11,686,425 ----------- Cable TV (6.1%) British Sky Broadcasting, 7.300% 10/15/06 ........................ 4,300,000 4,472,000 CSC Holdings, Inc.: Senior Notes, 7.875% 12/15/07 ........................ 7,950,000 7,641,938 Senior Subordinated Debentures, 9.875% 02/15/13 ........................ 1,000,000 976,250 Series B, 8.125% 08/15/09 ........................ 1,475,000 1,417,844 Mediacom L.L.C.: 9.500% 01/15/13 ........................ 10,900,000 9,810,000 Series B, 8.500% 04/15/08 ........................ 4,500,000 4,050,000 Rogers Cable, Inc., 7.875% 05/01/12 ........................ 5,500,000 5,455,873 Rogers Communications, Inc., 8.875% 07/15/07 ........................ 1,000,000 955,000 TCI Communications, Inc., 8.750% 08/01/15 ........................ 10,750,000 12,397,739 ----------- 47,176,644 ----------- Capital Goods (1.0%) Kennametal, Inc., 7.200% 06/15/12 ........................ 6,895,000 7,316,105 ----------- Consumer Products (5.4%) Hasbro, Inc.: 6.150% 07/15/08 ........................ 8,820,000 8,467,200 8.500% 03/15/06 ........................ 8,050,000 8,211,000 Playtex Products, Inc., 9.375% 06/01/11 ........................ 8,250,000 9,116,250 Pennzoil-Quaker State Co., 10.000% 11/01/08 ....................... 4,066,000 5,041,840 Scotts Co.: 8.625% 01/15/09 ........................ 7,925,000 8,360,875 Series 2002 B, 8.625% 01/15/09 ........................ 2,600,000 2,743,000 ----------- 41,940,165 ----------- Diversified Media (2.2%) Lamar Media Corp.: 7.250% 01/01/13 (a) .................... 10,615,000 10,787,494 8.625% 09/15/07 ........................ 6,195,000 6,473,775 ----------- 17,261,269 ----------- Energy (8.0%) Grant Prideco, 9.000% 12/15/09 (a) .................... 10,320,000 10,732,800 Pogo Producing Co., 8.250% 04/15/11 ........................ 1,000,000 1,055,000 Pride International, Inc.: 9.375% 05/01/07 ........................ 5,995,000 6,264,775 10.000% 06/01/09 ....................... 4,000,000 4,320,000 Vintage Petroleum, Inc.: 8.625% 02/01/09 ........................ 1,000,000 1,010,000 9.750% 06/30/09 ........................ 10,025,000 10,426,000 Westport Resources Corp., 8.250% 11/01/11 (a) .................... 14,680,000 15,414,000 XTO Energy, Inc., 7.500% 04/15/12 ........................ 11,930,000 12,675,625 ----------- 61,898,200 ----------- Environmental (2.4%) Allied Waste North America, Inc., Series B, 10.000% 08/01/09 ....................... 15,250,000 15,135,625 Synagro Technologies, Inc., 9.500% 04/01/09 ........................ 3,225,000 3,362,062 ----------- 18,497,687 ----------- Food, Beverage & Tobacco (4.1%) Constellation Brands, Inc.: 8.125% 01/15/12 ........................ 2,000,000 2,070,000 8.500% 03/01/09 ........................ 8,600,000 9,008,500 8.625% 08/01/06 ........................ 5,100,000 5,406,000 Cott Beverages, Inc., 8.000% 12/15/11 ........................ 14,450,000 15,317,000 ----------- 31,801,500 ----------- Gaming (7.3%) Harrahs Operating Co., Inc., 7.875% 12/15/05 ........................ 13,050,000 13,833,000 International Game Technology: 7.875% 05/15/04 ........................ 5,750,000 5,980,000 8.375% 05/15/09 ........................ 3,575,000 3,968,250 Park Place Entertainment Corp.: 8.875% 09/15/08 ........................ 500,000 531,290 9.375% 02/15/07 ........................ 15,000,000 16,012,500 Station Casinos, Inc.: 8.875% 12/01/08 ........................ 6,955,000 7,233,200 9.875% 06/01/10 ........................ 8,215,000 8,913,275 ----------- 56,471,515 ----------- See Accompanying Notes to Financial Statements 118 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- Par Value - -------------------------------------------------------------------------------- Health Care (8.5%) AdvancePCS, 8.500% 04/01/08 .......................... $ 8,700,000 $ 9,048,000 AmerisourceBergen Corp., 7.250% 11/15/12 (a) ...................... 1,000,000 1,025,000 8.125% 09/01/08 .......................... 13,125,000 13,978,125 HCA, Inc.: 6.300% 10/01/12 .......................... 1,575,000 1,588,452 6.910% 06/15/05 .......................... 7,000,000 7,355,292 6.950% 05/01/12 .......................... 2,250,000 2,371,086 7.000% 06/01/07 .......................... 1,000,000 1,061,760 7.875% 02/01/11 .......................... 1,425,000 1,562,353 Omnicare, Inc., Series B, 8.125% 03/15/21 .......................... 5,435,000 5,815,450 Select Medical Corp., 9.500% 06/15/09 .......................... 10,700,000 11,074,500 Triad Hospitals, Inc., Series B, 8.750% 05/01/09 .......................... 9,725,000 10,417,906 ----------- 65,297,924 ----------- Homebuilders (4.0%) KB Home: 8.625% 12/15/08 .......................... 6,000,000 6,210,000 9.500% 02/15/11 .......................... 5,150,000 5,459,000 Technical Olympic USA, Inc., 9.000% 07/01/10 .......................... 10,200,000 9,945,000 Toll Brothers, Inc., 8.250% 02/01/11 .......................... 1,000,000 1,005,000 Toll Corp.: 7.750% 09/15/07 .......................... 2,000,000 1,970,000 8.000% 05/01/09 .......................... 2,015,000 2,015,000 8.125% 02/01/09 .......................... 3,750,000 3,768,750 8.250% 12/01/11 .......................... 200,000 201,000 ----------- 30,573,750 ----------- Hotels (3.7%) Extended Stay America, Inc.: 9.150% 03/15/08 .......................... 8,580,000 8,451,300 9.875% 06/15/11 .......................... 5,500,000 5,582,500 Host Marriott LP, Series E, 8.375% 02/15/06 .......................... 4,250,000 4,207,500 ITT Corp., 6.750% 11/15/05 .......................... 10,000,000 10,000,000 ----------- 28,241,300 ----------- Leisure (1.2%) Six Flags, Inc.: (b) 04/01/08 ............................. 2,500,000 2,418,750 9.500% 02/01/09 .......................... 4,250,000 4,101,250 9.750% 06/15/07 .......................... 2,950,000 2,861,500 ----------- 9,381,500 ----------- Non-Food & Drug Retail (0.3%) United Stationers Supply Co., 8.375% 04/15/08 .......................... 2,530,000 2,552,138 ----------- Packaging (6.5%) Ball Corp.: 6.875% 12/15/12 (a) ...................... 6,500,000 6,532,500 7.750% 08/01/06 .......................... 2,850,000 2,992,500 8.250% 08/01/08 .......................... 7,000,000 7,367,500 Constar International Inc., 11.000% 12/01/12 ......................... 6,900,000 6,865,500 Owens-Illinois, Inc.: 7.150% 05/15/05 .......................... 8,225,000 7,906,281 7.350% 05/15/08 .......................... 2,000,000 1,855,000 7.500% 05/15/10 .......................... 1,750,000 1,610,000 8.100% 05/15/07 .......................... 1,800,000 1,737,000 Silgan Holdings, Inc., 9.000% 06/01/09 .......................... 12,413,000 12,940,552 ----------- 49,806,833 ----------- Printing & Publishing (3.9%) Dex Media East LLC, 12.125% 11/15/12 (a) ..................... 12,250,000 13,628,125 R.H. Donnelley Financial Corp.: 9.625% 12/15/10 (a) ...................... 1,320,000 1,412,400 10.875% 12/15/12 ......................... 13,795,000 15,036,550 ----------- 30,077,075 ----------- Railroad (0.2%) Kansas City Southern, 7.500% 06/15/09 .......................... 1,655,000 1,746,025 ----------- Real Estate Investment Trusts (REITs) (1.5%) Health Care REIT, Inc., 7.500% 08/15/07 .......................... 11,250,000 11,874,184 ----------- Restaurants (2.1%) Yum! Brands, Inc.: 7.450% 05/15/05 .......................... 3,785,000 3,955,325 7.650% 05/15/08 .......................... 2,000,000 2,100,000 8.500% 04/15/06 .......................... 3,965,000 4,212,813 8.750% 04/15/11 .......................... 5,750,000 6,238,750 ----------- 16,506,888 ----------- Services (3.5%) Iron Mountain, Inc.: 8.250% 07/01/11 .......................... 1,120,000 1,153,600 8.625% 04/01/13 .......................... 13,075,000 13,663,375 8.750% 09/30/09 .......................... 750,000 773,437 See Accompanying Notes to Financial Statements 119 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA HIGH YIELD FUND (CONT.) DECEMBER 31, 2002 Par Value - -------------------------------------------------------------------------------- United Rentals, Inc., Series B: 8.800% 08/15/08 .......................... $ 6,175,000 $ 4,924,563 9.250% 01/15/09 .......................... 4,700,000 3,842,250 9.500% 06/01/08 .......................... 1,500,000 1,226,250 10.750% 04/15/08 ......................... 1,000,000 995,000 ------------ 26,578,475 ------------ Shipping (1.2%) Teekay Shipping Corp., 8.875% 07/15/11 .......................... 9,025,000 9,261,906 ------------ Supermarkets (1.7%) Great Atlantic & Pacific Tea Co., Inc., 9.125% 12/15/11 .......................... 2,123,000 1,528,560 Winn-Dixie Stores, Inc., 8.875% 04/01/08 .......................... 11,250,000 11,503,125 ------------ 13,031,685 ------------ Telecommunications (1.2%) Nextel Communications, Inc.: 9.750% 10/31/07 .......................... 3,775,000 3,491,875 10.650% 09/15/07 ......................... 6,375,000 6,088,125 ------------ 9,580,000 ------------ Total Corporate Notes & Bonds (Cost of $651,464,591) ................... 660,624,218 ------------ Short-Term Obligation (12.2%) Repurchase agreement with State Street Bank & Trust Co., dated 12/31/02, due 01/02/03 at 1.050%, collateralized by U.S. Treasury Bonds and/or Notes with various maturities to 11/15/10, market value of $95,709,794 (repurchase proceeds $93,824,473) (Cost of $93,819,000) .................... 93,819,000 93,819,000 ------------ Total Investments (97.8%) (Cost of $745,283,591)(c) ................ 754,443,218 ------------ Other Assets & Liabilities, Net (2.2%) ......... 17,069,559 ------------ Net Assets (100.0%) ............................ $771,512,777 ============ Notes to Schedule of Investments: (a) This security is exempt from registration under Rule 144A of the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At December 31, 2002, the value of these securities amounted to $79,993,519 which represents 10.4% of net assets. (b) Zero coupon bond. (c) Cost for federal income tax purposes is $746,476,206. COLUMBIA DAILY INCOME COMPANY DECEMBER 31, 2002 Par Value - -------------------------------------------------------------------------------- U.S. Government Securities (33.0%) Federal National Mortgage Association (FNMA): 1.275% 03/19/03 ....................... $ 9,100,000 $ 9,075,086 1.500% 01/15/03 ....................... 10,000,000 9,994,167 1.586% 01/10/03 (a) ................... 20,000,000 20,000,518 5.000% 02/14/03 ....................... 6,700,000 6,727,597 5.250% 01/15/03 ....................... 11,300,000 11,315,022 Federal Home Loan Bank (FHLB): 1.220% 03/12/03 (a) ................... 25,050,000 25,050,677 1.650% 01/08/03 ....................... 13,000,000 12,995,829 5.125% 01/13/03 ....................... 36,905,000 36,945,400 Federal Home Loan Mortgage Corp (FHLMC): 1.240% 02/25/03 ....................... 6,000,000 5,988,633 1.270% 02/14/03 ....................... 30,000,000 29,953,433 1.270% 04/02/03 ....................... 12,000,000 11,985,607 1.670% 01/02/03 ....................... 20,000,000 19,999,072 7.000% 02/15/03 ....................... 21,500,000 21,640,357 Student Loan Mortgage Association (SLMA): 1.237% 02/20/03 (a) ................... 30,000,000 30,000,000 1.257% 06/19/03 (a) ................... 35,000,000 35,000,000 1.297% 04/17/03 (a) ................... 25,000,000 25,000,000 U.S. Treasury Bills: 1.618% 01/16/03 ....................... 7,000,000 6,995,282 1.630% 02/06/03 ....................... 10,000,000 9,983,700 1.645% 02/13/03 ....................... 10,200,000 10,179,958 1.649% 02/06/03 ....................... 17,000,000 16,971,976 1.649% 02/27/03 ....................... 18,900,000 18,850,654 ------------ Total U.S. Government Securities (Cost of $374,652,968) ................ 374,652,968 ------------ Commercial Paper (66.4%) Abbey National North America LLC: 1.300% 01/09/03 ....................... 10,000,000 9,997,111 1.320% 02/05/03 ....................... 10,500,000 10,486,525 1.325% 02/13/03 ....................... 7,500,000 7,488,130 American Express Credit: 1.290% 01/14/03 ....................... 18,000,000 17,991,615 1.310% 01/23/03 ....................... 6,000,000 5,995,197 1.310% 01/30/03 ....................... 11,500,000 11,487,864 American General Finance Corp.: 1.320% 01/31/03 ....................... 11,000,000 10,987,900 1.530% 01/17/03 ....................... 10,000,000 9,993,200 See Accompanying Notes to Financial Statements 120 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- Par Value - -------------------------------------------------------------------------------- American Honda Finance: 1.300% 01/09/03 ........................ $ 7,000,000 $ 6,997,978 1.300% 01/24/03 ........................ 8,200,000 8,193,190 1.310% 01/09/03 ........................ 7,200,000 7,197,904 1.310% 01/24/03 ........................ 6,800,000 6,794,309 1.320% 02/12/03 ........................ 6,755,000 6,744,597 Barclays U.S. Funding Corp., 1.320% 02/28/03 ........................ 10,000,000 9,978,733 Becton Kickinson & Co., 1.310% 03/17/03 ........................ 11,300,000 11,269,160 BP America Inc.: 1.300% 01/16/03 ........................ 10,000,000 9,994,583 1.300% 02/12/03 ........................ 8,600,000 8,586,957 1.300% 03/05/03 ........................ 9,300,000 9,278,843 1.300% 03/26/03 ........................ 6,400,000 6,380,587 Caterpillar Financial Services Corp.: 1.300% 01/17/03 ........................ 10,100,000 10,094,165 1.300% 01/23/03 ........................ 11,200,000 11,191,102 1.320% 03/18/03 ........................ 10,000,000 9,972,133 ChevronTexaco Corp., 1.310% 01/17/03 ........................ 15,000,000 14,991,267 Chevron Transport Corp., 1.540% 01/07/03 ........................ 10,000,000 9,997,433 Chevron UK Investment PLC, 1.310% 03/17/03 ........................ 10,000,000 9,972,708 Citicorp: 1.330% 01/27/03 ........................ 29,000,000 28,972,144 1.340% 01/21/03 ........................ 7,000,000 6,994,789 Deutsche Bank Financial, Inc.: 1.300% 02/11/03 ........................ 10,000,000 9,985,194 1.310% 03/04/03 ........................ 11,000,000 10,975,183 Dresdner U.S. Finance, Inc.: 1.540% 02/03/03 ........................ 22,000,000 21,968,943 1.700% 01/03/03 ........................ 15,000,000 14,998,583 General Electric Capital Corp.: 1.320% 01/08/03 ........................ 7,300,000 7,298,126 1.320% 03/27/03 ........................ 12,200,000 12,161,977 1.420% 05/28/03 (a) .................... 15,000,000 15,004,184 Goldman Sachs Group, Inc.: 1.350% 01/22/03 ........................ 15,000,000 14,988,188 1.380% 01/09/03 ........................ 20,000,000 19,993,867 J.P. Morgan Chase & Co.: 1.340% 01/28/03 ........................ 18,000,000 17,981,910 1.350% 02/24/03 ........................ 10,200,000 10,179,345 1.690% 01/07/03 ........................ 7,800,000 7,797,803 Kraft Foods, Inc.: 1.300% 01/17/03 ........................ 7,000,000 6,995,956 1.300% 01/29/03 ........................ 9,400,000 9,390,496 1.300% 02/13/03 ........................ 11,000,000 10,982,919 Merck & Co., Inc.: 1.290% 01/10/03 ........................ 15,000,000 14,995,163 1.290% 01/15/03 ........................ 10,000,000 9,994,983 1.300% 01/31/03 ........................ 11,800,000 11,787,217 Merrill Lynch & Co.: 1.300% 01/22/03 ........................ 9,529,000 9,521,774 1.300% 01/29/03 ........................ 5,000,000 4,994,944 Metlife Funding, Inc.: 1.300% 01/23/03 ........................ 23,000,000 22,981,728 1.500% 01/10/03 ........................ 9,200,000 9,196,550 Morgan Stanley: 1.360% 01/15/03 ........................ 11,000,000 10,994,182 1.360% 01/27/03 ........................ 9,000,000 8,991,160 1.370% 01/28/03 ........................ 15,000,000 14,984,588 Nike, Inc., 1.300% 01/08/03 ........................ 11,000,000 10,997,219 PACCAR Financial Corp.: 1.300% 02/20/03 ........................ 17,800,000 17,767,861 1.300% 02/27/03 ........................ 2,900,000 2,894,031 1.320% 01/02/03 ........................ 12,501,000 12,500,542 Schering Corp.: 1.300% 01/23/03 ........................ 11,000,000 10,991,261 1.300% 02/10/03 ........................ 10,300,000 10,285,122 1.300% 02/28/03 ........................ 1,980,000 1,975,853 Societe Generale of North America, Inc.: 1.320% 02/18/03 ........................ 7,000,000 6,987,680 1.560% 01/06/03 ........................ 28,000,000 27,993,933 UBS Finance, Inc.: 1.290% 01/16/03 ........................ 16,000,000 15,991,400 1.310% 01/17/03 ........................ 4,800,000 4,797,205 1.310% 02/07/03 ........................ 7,500,000 7,489,902 1.350% 01/07/03 ........................ 7,000,000 6,998,425 W.W. Grainger, Inc., 1.310% 03/25/03 ........................ 17,032,000 16,980,559 Wells Fargo Financial, Inc.: 1.300% 01/14/03 ........................ 3,300,000 3,298,451 1.310% 01/21/03 ........................ 10,000,000 9,992,722 -------------- Total Commercial Paper (Cost of $755,117,253) ................. 755,117,253 -------------- Total Investments (99.4%) (Cost of $1,129,770,221) (b) ........... 1,129,770,221 -------------- Other Assets & Liabilities, Net (0.6%) ..... 6,304,677 -------------- Net Assets (100.0%) ........................ $1,136,074,898 ============== Notes to Schedule of Investments: (a) Floating rate note whose interest rate is reset periodically based on an index. The interest rate shown reflects the rate in effect at December 31, 2002. (b) Cost for both financial statement and federal income tax purposes is the same. See Accompanying Notes to Financial Statements 121 STATEMENTS OF ASSETS AND LIABILITIES - -------------------------------------------------------------------------------- COLUMBIA FUNDS DECEMBER 31, 2002
Common International Stock Growth Stock Fund (a) Fund (b) Fund (a) ------------- --------------- ------------- ASSETS: Investments at identified cost (including short-term obligations) ..... $ 410,245,861 $ 791,835,003 $ 178,137,075 ============= =============== ============= Investments at value .................................................. $ 411,187,376 $ 833,645,119 $ 163,581,827 Repurchase agreement .................................................. 3,900,000 265,000 10,411,000 ------------- --------------- ------------- Total Investments at value ........................................... $ 415,087,376 $ 833,910,119 $ 173,992,827 Cash .................................................................. 586 988 940 Foreign currency (cost $5,356) ........................................ -- -- 5,478 Receivable for: Investments sold ..................................................... 6,232,792 6,925,162 -- Capital stock sold ................................................... 236,723 1,020,938 1,596,454 Interest ............................................................. 247 8 477 Dividends ............................................................ 487,713 682,580 505,886 Expense reimbursement due from Advisor ............................... -- -- -- Prepaid expense ....................................................... 87,094 92,217 11,538 Other assets .......................................................... 46 24,674 93,013 ------------- --------------- ------------- Total assets .......................................................... 422,132,577 842,656,686 176,206,613 ------------- --------------- ------------- LIABILITIES: Payable for: Expense reimbursement due to Advisor ................................. -- -- -- Investments purchased on a delayed delivery basis .................... -- -- -- Investments purchased ................................................ 3,502,173 9,032,246 -- Capital stock redeemed ............................................... 1,279,704 3,890,088 690,420 Distributions ........................................................ -- -- -- Investment management fee ............................................ 222,970 437,949 139,768 Transfer agent fee ................................................... 204,831 382,537 95,069 Pricing and bookkeeping fees ......................................... 4,133 13,283 3,177 Expenses received at merger .......................................... -- 96,106 132,048 Director's fees ...................................................... 5,065 20,250 131 Custody fee .......................................................... 8,288 9,507 18,056 Reports to shareholders .............................................. 68,971 103,936 30,938 Audit fee ............................................................ 25,556 23,670 40,655 Foreign capital gains tax payable ..................................... -- -- 83,377 Litigation settlement payable ......................................... -- -- -- Other liabilities ..................................................... 1,510 -- -- ------------- --------------- ------------- Total liabilities ..................................................... 5,323,201 14,009,572 1,233,639 ------------- --------------- ------------- NET ASSETS .............................................................. $ 416,809,376 $ 828,647,114 $ 174,972,974 ============= =============== ============= NET ASSETS consist of: Paid-in capital ....................................................... $ 549,919,014 $ 1,259,013,469 $ 237,975,081 Undistributed (overdistributed) net investment income (loss) .......... -- -- (14,405) Accumulated net realized gain (loss) .................................. (137,951,153) (472,441,471) (58,883,643) Unrealized appreciation (depreciation) on: Investments .......................................................... 4,841,515 42,075,116 (4,144,248) Foreign currency translations ........................................ -- -- 40,189 ------------- --------------- ------------- NET ASSETS .............................................................. $ 416,809,376 $ 828,647,114 $ 174,972,974 ============= =============== ============= Real Estate Special Small Cap Equity Fund (c) Fund Fund (a) --------------- ------------- ------------- ASSETS: Investments at identified cost (including short-term obligations) ..... $ 848,865,078 $ 470,140,368 $ 688,674,869 =============== ============= ============= Investments at value .................................................. $ 786,146,594 $ 467,386,322 $ 724,226,857 Repurchase agreement .................................................. 86,371,000 24,593,000 24,662,000 --------------- ------------- ------------- Total Investments at value ........................................... $ 872,517,594 $ 491,979,322 $ 748,888,857 Cash .................................................................. 38,559 231 473 Foreign currency (cost $5,356) ........................................ -- -- -- Receivable for: Investments sold ..................................................... 546,836 2,966,811 29,409,374 Capital stock sold ................................................... 2,046,914 1,016,630 4,885,113 Interest ............................................................. 2,519 717 719 Dividends ............................................................ 266,879 24,270 3,877,395 Expense reimbursement due from Advisor ............................... -- -- -- Prepaid expense ....................................................... 106,829 9,382 68,954 Other assets .......................................................... 250 -- 671 --------------- ------------- ------------- Total assets .......................................................... 875,526,380 495,997,363 787,131,556 --------------- ------------- ------------- LIABILITIES: Payable for: Expense reimbursement due to Advisor ................................. -- -- -- Investments purchased on a delayed delivery basis .................... -- -- -- Investments purchased ................................................ 30,566,043 1,165,767 1,284,184 Capital stock redeemed ............................................... 4,580,086 996,684 8,229,218 Distributions ........................................................ -- -- -- Investment management fee ............................................ 612,744 437,182 496,622 Transfer agent fee ................................................... 248,182 244,329 68,765 Pricing and bookkeeping fees ......................................... 6,738 4,310 4,176 Expenses received at merger .......................................... 363,576 -- -- Director's fees ...................................................... 5,913 3,865 3,659 Custody fee .......................................................... 5,858 29,740 4,917 Reports to shareholders .............................................. 57,043 33,908 17,458 Audit fee ............................................................ 21,939 28,819 21,685 Foreign capital gains tax payable ..................................... -- -- -- Litigation settlement payable ......................................... -- -- -- Other liabilities ..................................................... 562 21,691 10,364 --------------- ------------- ------------- Total liabilities ..................................................... 36,468,684 2,966,295 10,141,048 --------------- ------------- ------------- NET ASSETS .............................................................. $ 839,057,696 $ 493,031,068 $ 776,990,508 =============== ============= ============= NET ASSETS consist of: Paid-in capital ....................................................... $ 1,100,692,718 $ 709,888,628 $ 735,305,103 Undistributed (overdistributed) net investment income (loss) .......... (3,410) 180,997 5,750,071 Accumulated net realized gain (loss) .................................. (285,284,128) (238,877,511) (24,278,654) Unrealized appreciation (depreciation) on: Investments .......................................................... 23,652,516 21,838,954 60,213,988 Foreign currency translations ........................................ -- -- -- --------------- ------------- ------------- NET ASSETS .............................................................. $ 839,057,696 $ 493,031,068 $ 776,990,508 =============== ============= ============= Strategic Technology Value Balanced Fund (a) Fund (a) Fund (a) ------------ ------------- ------------- ASSETS: Investments at identified cost (including short-term obligations) ..... $ 7,553,470 $ 272,098,916 $ 667,127,838 ============ ============= ============= Investments at value .................................................. $ 7,946,203 $ 236,603,693 $ 653,123,987 Repurchase agreement .................................................. -- 29,413,000 31,703,000 ------------ ------------- ------------- Total Investments at value ........................................... $ 7,946,203 $ 266,016,693 $ 684,826,987 Cash .................................................................. 130,602 227 409,117 Foreign currency (cost $5,356) ........................................ -- -- -- Receivable for: Investments sold ..................................................... 429,226 3,668,782 15,883,374 Capital stock sold ................................................... 14,815 244,254 687,607 Interest ............................................................. -- 858 2,804,797 Dividends ............................................................ 1,654 330,213 454,848 Expense reimbursement due from Advisor ............................... 10,413 18,418 -- Prepaid expense ....................................................... 87,773 14,942 86,447 Other assets .......................................................... 13,093 -- -- ------------ ------------- ------------- Total assets .......................................................... 8,633,779 270,294,387 705,153,177 ------------ ------------- ------------- LIABILITIES: Payable for: Expense reimbursement due to Advisor ................................. -- -- -- Investments purchased on a delayed delivery basis .................... -- -- 23,267,366 Investments purchased ................................................ 493,989 2,549,594 8,408,029 Capital stock redeemed ............................................... 23,117 1,514,030 3,388,641 Distributions ........................................................ -- -- -- Investment management fee ............................................ 7,447 180,916 296,654 Transfer agent fee ................................................... -- 66,426 179,114 Pricing and bookkeeping fees ......................................... 2,429 -- 9,240 Expenses received at merger .......................................... -- 96,940 -- Director's fees ...................................................... 71 848 7,070 Custody fee .......................................................... 1,140 2,501 4,499 Reports to shareholders .............................................. 18,001 11,343 66,895 Audit fee ............................................................ 24,065 23,995 28,813 Foreign capital gains tax payable ..................................... -- -- -- Litigation settlement payable ......................................... -- -- -- Other liabilities ..................................................... -- 6,574 6,773 ------------ ------------- ------------- Total liabilities ..................................................... 570,259 4,453,167 35,663,094 ------------ ------------- ------------- NET ASSETS .............................................................. $ 8,063,520 $ 265,841,220 $ 669,490,083 ============ ============= ============= NET ASSETS consist of: Paid-in capital ....................................................... $ 16,856,383 $ 303,152,420 $ 799,124,327 Undistributed (overdistributed) net investment income (loss) .......... -- 62,338 (355,183) Accumulated net realized gain (loss) .................................. (9,185,596) (31,291,164) (146,978,210) Unrealized appreciation (depreciation) on: Investments .......................................................... 392,733 (6,082,223) 17,699,149 Foreign currency translations ........................................ -- (151) -- ------------ ------------- ------------- NET ASSETS .............................................................. $ 8,063,520 $ 265,841,220 $ 669,490,083 ============ ============= ============= National Short Term Fixed Income Municipal Bond Securities Bond Fund (c) Fund (a) Fund (a) ------------- ------------- ----------- ASSETS: Investments at identified cost (including short-term obligations) ....... $ 392,820,830 $ 565,768,219 $15,553,822 ============= ============= =========== Investments at value .................................................... $ 336,363,558 $ 507,149,756 $16,309,275 Repurchase agreement .................................................... 63,247,000 82,698,000 -- ------------- ------------- ----------- Total Investments at value ............................................. $ 399,610,558 $ 589,847,756 $16,309,275 Cash .................................................................... 1,174,637 540 -- Foreign currency (cost $5,356) .......................................... -- -- -- Receivable for: Investments sold ....................................................... -- 8,091,336 -- Capital stock sold ..................................................... 2,533,085 3,052,663 48,611 Interest ............................................................... 2,882,270 5,376,871 219,815 Dividends .............................................................. -- -- -- Expense reimbursement due from Advisor ................................. -- -- 5,699 Prepaid expense ......................................................... 124,671 72,192 118,859 Other assets ............................................................ -- -- 6,343 ------------- ------------- ----------- Total assets ............................................................ 406,325,221 606,441,358 16,708,602 ------------- ------------- ----------- LIABILITIES: Payable for: Expense reimbursement due to Advisor ................................... 26,325 -- -- Investments purchased on a delayed delivery basis ...................... -- 48,461,431 -- Investments purchased .................................................. 37,547,432 6,394,432 -- Capital stock redeemed ................................................. 878,768 740,099 -- Distributions .......................................................... 303,426 91,259 2,429 Investment management fee .............................................. 126,420 228,425 7,161 Transfer agent fee ..................................................... 17,543 67,158 2,869 Pricing and bookkeeping fees ........................................... 3,151 5,200 -- Expenses received at merger ............................................ -- -- -- Director's fees ........................................................ 16,670 12,886 5,185 Custody fee ............................................................ 1,067 5,710 -- Reports to shareholders ................................................ 14,225 8,000 8,631 Audit fee .............................................................. 17,175 22,875 22,997 Foreign capital gains tax payable ....................................... -- -- -- Litigation settlement payable ........................................... -- -- -- Other liabilities ....................................................... 25,189 42,283 75 ------------- ------------- ----------- Total liabilities ....................................................... 38,977,391 56,079,758 49,347 ------------- ------------- ----------- NET ASSETS ................................................................ $ 367,347,830 $ 550,361,600 $16,659,255 ============= ============= =========== NET ASSETS consist of: Paid-in capital ......................................................... $ 364,156,495 $ 539,117,101 $15,885,220 Undistributed (overdistributed) net investment income (loss) ............ (204,761) (885,594) 4,896 Accumulated net realized gain (loss) .................................... (3,393,632) (11,949,444) 13,686 Unrealized appreciation (depreciation) on: Investments ............................................................ 6,789,728 24,079,537 755,453 Foreign currency translations .......................................... -- -- -- ------------- ------------- ----------- NET ASSETS ................................................................ $ 367,347,830 $ 550,361,600 $16,659,255 ============= ============= =========== Oregon Municipal Daily Bond High Yield Income Fund (a) Fund (a) Company ------------ ------------- -------------- ASSETS: Investments at identified cost (including short-term obligations) ...... $482,002,493 $ 745,283,591 $1,129,770,221 ============ ============= ============== Investments at value ................................................... $506,513,987 $ 660,624,218 $1,129,770,221 Repurchase agreement ................................................... -- 93,819,000 -- ------------ ------------- -------------- Total Investments at value ............................................ $506,513,987 $ 754,443,218 $1,129,770,221 Cash ................................................................... -- 2,616,140 4,068,297 Foreign currency (cost $5,356) ......................................... -- -- -- Receivable for: Investments sold ...................................................... -- -- Capital stock sold .................................................... 259,896 7,866,774 4,416,339 Interest .............................................................. 6,523,655 12,183,276 2,205,874 Dividends ............................................................. -- -- -- Expense reimbursement due from Advisor ................................ -- -- -- Prepaid expense ........................................................ 112,029 104,009 23,745 Other assets ........................................................... -- -- 1,193 ------------ ------------- -------------- Total assets ........................................................... 513,409,567 777,213,417 1,140,485,669 ------------ ------------- -------------- LIABILITIES: Payable for: Expense reimbursement due to Advisor .................................. -- -- -- Investments purchased on a delayed delivery basis ..................... -- -- -- Investments purchased ................................................. -- 2,615,656 -- Capital stock redeemed ................................................ 2,514,358 1,675,013 3,533,896 Distributions ......................................................... 403,006 862,657 10,440 Investment management fee ............................................. 214,037 369,472 505,247 Transfer agent fee .................................................... 63,114 53,852 211,574 Pricing and bookkeeping fees .......................................... 5,114 4,143 9,847 Expenses received at merger ........................................... -- -- -- Director's fees ....................................................... 659 1,349 8,325 Custody fee ........................................................... 1,589 1,592 34,498 Reports to shareholders ............................................... 12,806 16,342 70,000 Audit fee ............................................................. 29,703 20,329 26,944 Foreign capital gains tax payable ...................................... -- -- -- Litigation settlement payable .......................................... -- 66,207 -- Other liabilities ...................................................... 2,213 14,028 -- ------------ ------------- -------------- Total liabilities ...................................................... 3,246,599 5,700,640 4,410,771 ------------ ------------- -------------- NET ASSETS ............................................................... $510,162,968 $ 771,512,777 $1,136,074,898 ============ ============= ============== NET ASSETS consist of: Paid-in capital ........................................................ $485,233,080 $ 801,258,492 $1,136,074,898 Undistributed (overdistributed) net investment income (loss) ........... 131,976 (989,027) -- Accumulated net realized gain (loss) ................................... 286,418 (37,916,315) -- Unrealized appreciation (depreciation) on: Investments ........................................................... 24,511,494 9,159,627 -- Foreign currency translations ......................................... -- -- -- ------------ ------------- -------------- NET ASSETS ............................................................... $510,162,968 $ 771,512,777 $1,136,074,898 ============ ============= ==============
See Accompanying Notes to Financial Statements 122 & 123 STATEMENTS OF ASSETS AND LIABILITIES - -------------------------------------------------------------------------------- COLUMBIA FUNDS DECEMBER 31, 2002
Common International Stock Growth Stock Fund (a) Fund (b) Fund (a) --------------- --------------- --------------- NET ASSETS: Class A Shares .................................................... $ 31,899 $ 3,076,679 $ 20,178,418 =============== =============== =============== Class B Shares .................................................... $ 109,430 $ 114,331 $ 10,920,486 =============== =============== =============== Class D Shares .................................................... $ 29,996 $ 103,387 $ 541,760 =============== =============== =============== Class G Shares .................................................... -- $ 13,704,886 -- =============== =============== =============== Class T Shares .................................................... -- -- -- =============== =============== =============== Class Z Shares .................................................... $ 416,638,051 $ 811,647,831 $ 143,332,310 =============== =============== =============== SHARES OUTSTANDING: Class A Shares .................................................... 2,140 147,670 2,008,705 =============== =============== =============== Class B Shares .................................................... 7,339 5,492 1,090,264 =============== =============== =============== Class D Shares .................................................... 2,011 4,966 54,053 =============== =============== =============== Class G Shares .................................................... -- 658,080 -- =============== =============== =============== Class T Shares .................................................... -- -- -- =============== =============== =============== Class Z Shares .................................................... 27,950,415 38,931,730 14,262,004 =============== =============== =============== CLASS A SHARES: Net asset value per share (d) ..................................... $ 14.91 $ 20.83 $ 10.05 =============== =============== =============== Maximum sales charge .............................................. 5.75% 5.75% 5.75% =============== =============== =============== Maximum offering price per share (e) .............................. $ 15.82 $ 22.10 $ 10.66 =============== =============== =============== CLASS B SHARES: Net asset value and offering price per share (d) .................. $ 14.91 $ 20.82 $ 10.02 =============== =============== =============== CLASS D SHARES: Net asset value per share (d) ..................................... $ 14.92 $ 20.82 $ 10.02 =============== =============== =============== Maximum sales charge .............................................. 1.00% 1.00% 1.00% =============== =============== =============== Maximum offering price per share (e) .............................. $ 15.07 $ 21.03 $ 10.12 =============== =============== =============== CLASS G SHARES: Net asset value and offering price per share (d) .................. -- $ 20.83 -- =============== =============== =============== CLASS T SHARES: Net asset value per share (d) ..................................... -- -- -- =============== =============== =============== Maximum sales charge .............................................. -- -- -- =============== =============== =============== Maximum offering price per share (e) .............................. -- -- -- =============== =============== =============== CLASS Z SHARES: Net asset value, offering and redemption price per share .......... $ 14.91 $ 20.85 $ 10.05 =============== =============== =============== Real Estate Special Small Cap Equity Fund (c) Fund Fund (a) --------------- --------------- --------------- NET ASSETS: Class A Shares .................................................... $ 1,180,194 -- $ 905,262 =============== =============== =============== Class B Shares .................................................... $ 3,383,258 -- $ 1,073,851 =============== =============== =============== Class D Shares .................................................... $ 433,172 -- $ 364,934 =============== =============== =============== Class G Shares .................................................... $ 753,358 -- -- =============== =============== =============== Class T Shares .................................................... $ 25,966,194 -- -- =============== =============== =============== Class Z Shares .................................................... $ 807,341,520 $ 493,031,068 $ 774,646,461 =============== =============== =============== SHARES OUTSTANDING: Class A Shares .................................................... 79,895 -- 50,859 =============== =============== =============== Class B Shares .................................................... 229,171 -- 60,254 =============== =============== =============== Class D Shares .................................................... 29,345 -- 20,481 =============== =============== =============== Class G Shares .................................................... 51,005 -- -- =============== =============== =============== Class T Shares .................................................... 1,755,438 -- -- =============== =============== =============== Class Z Shares .................................................... 54,586,611 30,239,716 43,497,972 =============== =============== =============== CLASS A SHARES: Net asset value per share (d) ..................................... $ 14.77 -- $ 17.80 =============== =============== =============== Maximum sales charge .............................................. 5.75% -- 5.75% =============== =============== =============== Maximum offering price per share (e) .............................. $ 15.67 -- $ 18.89 =============== =============== =============== CLASS B SHARES: Net asset value and offering price per share (d) .................. $ 14.76 -- $ 17.82 =============== =============== =============== CLASS D SHARES: Net asset value per share (d) ..................................... $ 14.76 -- $ 17.82 =============== =============== =============== Maximum sales charge .............................................. 1.00% -- 1.00% =============== =============== =============== Maximum offering price per share (e) .............................. $ 14.91 -- $ 18.00 =============== =============== =============== CLASS G SHARES: Net asset value and offering price per share (d) .................. $ 14.77 -- -- =============== =============== =============== CLASS T SHARES: Net asset value per share (d) ..................................... $ 14.79 -- -- =============== =============== =============== Maximum sales charge .............................................. 5.75% -- -- =============== =============== =============== Maximum offering price per share (e) .............................. $ 15.69 -- -- =============== =============== =============== CLASS Z SHARES: Net asset value, offering and redemption price per share .......... $ 14.79 $ 16.30 $ 17.81 =============== =============== =============== Strategic Technology Value Balanced Fund (a) Fund (a) Fund (a) --------------- --------------- --------------- NET ASSETS: Class A Shares ...................................................... $ 1,009 $ 53,525,810 $ 145,866 =============== =============== =============== Class B Shares ...................................................... $ 6,719 $ 2,350,488 $ 607,537 =============== =============== =============== Class D Shares ...................................................... $ 995 $ 355,320 $ 446,409 =============== =============== =============== Class G Shares ...................................................... -- -- -- =============== =============== =============== Class T Shares ...................................................... -- -- -- =============== =============== =============== Class Z Shares ...................................................... $ 8,054,797 $ 209,609,602 $ 668,290,271 =============== =============== =============== SHARES OUTSTANDING: Class A Shares ...................................................... 266 4,078,004 8,325 =============== =============== =============== Class B Shares ...................................................... 1,777 179,403 34,675 =============== =============== =============== Class D Shares ...................................................... 263 27,113 25,491 =============== =============== =============== Class G Shares ...................................................... -- -- -- =============== =============== =============== Class T Shares ...................................................... -- -- -- =============== =============== =============== Class Z Shares ...................................................... 2,127,027 15,957,937 38,157,175 =============== =============== =============== CLASS A SHARES: Net asset value per share (d) ....................................... $ 3.79 $ 13.13 $ 17.52 =============== =============== =============== Maximum sales charge ................................................ 5.75% 5.75% 5.75% =============== =============== =============== Maximum offering price per share (e) ................................ $ 4.02 $ 13.93 $ 18.59 =============== =============== =============== CLASS B SHARES: Net asset value and offering price per share (d) .................... $ 3.78 $ 13.10 $ 17.52 =============== =============== =============== CLASS D SHARES: Net asset value per share (d) ....................................... $ 3.78 $ 13.11 $ 17.51 =============== =============== =============== Maximum sales charge ................................................ 1.00% 1.00% 1.00% =============== =============== =============== Maximum offering price per share (e) ................................ $ 3.82 $ 13.24 $ 17.69 =============== =============== =============== CLASS G SHARES: Net asset value and offering price per share (d) .................... -- -- -- =============== =============== =============== CLASS T SHARES: Net asset value per share (d) ....................................... -- -- -- =============== =============== =============== Maximum sales charge ................................................ -- -- -- =============== =============== =============== Maximum offering price per share (e) ................................ -- -- -- =============== =============== =============== CLASS Z SHARES: Net asset value, offering and redemption price per share ............ $ 3.79 $ 13.14 $ 17.51 =============== =============== =============== National Short Term Fixed Income Municipal Bond Securities Bond Fund (c) Fund (a) Fund (a) -------------- -------------- -------------- NET ASSETS: Class A Shares ..................................................... $ 5,543,298 $ 945,198 $ 67,225 ============== ============== ============== Class B Shares ..................................................... $ 6,260,511 $ 1,465,811 $ 72,274 ============== ============== ============== Class D Shares ..................................................... $ 5,222,795 $ 426,628 $ 49,972 ============== ============== ============== Class G Shares ..................................................... $ 1,874,428 -- -- ============== ============== ============== Class T Shares ..................................................... $ 30,858,593 -- -- ============== ============== ============== Class Z Shares ..................................................... $ 317,588,205 $ 547,523,963 $ 16,469,784 ============== ============== ============== SHARES OUTSTANDING: Class A Shares ..................................................... 639,138 69,887 6,537 ============== ============== ============== Class B Shares ..................................................... 721,794 108,381 7,028 ============== ============== ============== Class D Shares ..................................................... 602,209 31,544 4,859 ============== ============== ============== Class G Shares ..................................................... 216,140 -- -- ============== ============== ============== Class T Shares ..................................................... 3,558,295 -- -- ============== ============== ============== Class Z Shares ..................................................... 36,621,504 40,483,546 1,601,690 ============== ============== ============== CLASS A SHARES: Net asset value per share (d) ...................................... $ 8.67 $ 13.52 $ 10.28 ============== ============== ============== Maximum sales charge ............................................... 4.75% 4.75% 4.75% ============== ============== ============== Maximum offering price per share (e) ............................... $ 9.10 $ 14.19 $ 10.79 ============== ============== ============== CLASS B SHARES: Net asset value and offering price per share (d) ................... $ 8.67 $ 13.52 $ 10.28 ============== ============== ============== CLASS D SHARES: Net asset value per share (d) ...................................... $ 8.67 $ 13.52 $ 10.28 ============== ============== ============== Maximum sales charge ............................................... 1.00% 1.00% 1.00% ============== ============== ============== Maximum offering price per share (e) ............................... $ 8.76 $ 13.66 $ 10.38 ============== ============== ============== CLASS G SHARES: Net asset value and offering price per share (d) ................... $ 8.67 -- -- ============== ============== ============== CLASS T SHARES: Net asset value per share (d) ...................................... $ 8.67 -- -- ============== ============== ============== Maximum sales charge ............................................... 4.75% -- -- ============== ============== ============== Maximum offering price per share (e) ............................... $ 9.10 -- -- ============== ============== ============== CLASS Z SHARES: Net asset value, offering and redemption price per share ........... $ 8.67 $ 13.52 $ 10.28 ============== ============== ============== Oregon Municipal Daily Bond High Yield Income Fund (a) Fund (a) Company --------------- --------------- --------------- NET ASSETS: Class A Shares .................................................... $ 476,716 $ 33,992,401 -- =============== =============== =============== Class B Shares .................................................... $ 373,270 $ 16,700,580 -- =============== =============== =============== Class D Shares .................................................... $ 447,678 $ 18,034,827 -- =============== =============== =============== Class G Shares .................................................... -- -- -- =============== =============== =============== Class T Shares .................................................... -- -- -- =============== =============== =============== Class Z Shares .................................................... $ 508,865,304 $ 702,784,969 $ 1,136,074,898 =============== =============== =============== SHARES OUTSTANDING: Class A Shares .................................................... 38,137 4,063,256 -- =============== =============== =============== Class B Shares .................................................... 29,862 1,996,430 -- =============== =============== =============== Class D Shares .................................................... 35,816 2,155,867 -- =============== =============== =============== Class G Shares .................................................... -- -- -- =============== =============== =============== Class T Shares .................................................... -- -- -- =============== =============== =============== Class Z Shares .................................................... 40,709,690 84,011,076 1,136,074,898 =============== =============== =============== CLASS A SHARES: Net asset value per share (d) ..................................... $ 12.50 $ 8.37 -- =============== =============== =============== Maximum sales charge .............................................. 4.75% 4.75% -- =============== =============== =============== Maximum offering price per share (e) .............................. $ 13.12 $ 8.79 -- =============== =============== =============== CLASS B SHARES: Net asset value and offering price per share (d) .................. $ 12.50 $ 8.37 -- =============== =============== =============== CLASS D SHARES: Net asset value per share (d) ..................................... $ 12.50 $ 8.37 -- =============== =============== =============== Maximum sales charge .............................................. 1.00% 1.00% -- =============== =============== =============== Maximum offering price per share (e) .............................. $ 12.63 $ 8.45 -- =============== =============== =============== CLASS G SHARES: Net asset value and offering price per share (d) .................. -- -- -- =============== =============== =============== CLASS T SHARES: Net asset value per share (d) ..................................... -- -- -- =============== =============== =============== Maximum sales charge .............................................. -- -- -- =============== =============== =============== Maximum offering price per share (e) .............................. -- -- -- =============== =============== =============== CLASS Z SHARES: Net asset value, offering and redemption price per share .......... $ 12.50 $ 8.37 $ 1.00 =============== =============== ===============
(a) Effective November 1, 2002, the Fund began offering four classes of shares: Class A, Class B, Class D and Class Z shares. Prior to November 1, 2002, the Fund was single class which was subsequently named Class Z shares. (b) Effective November 1, 2002, the Fund began offering five classes of shares: Class A, Class B, Class D, Class G and Class Z shares. Prior to November 1, 2002, the Fund was single class which was subsequently named Class Z shares. (c) Effective November 1, 2002, the Fund began offering six classes of shares: Class A, Class B, Class D, Class G, Class T and Class Z shares. Prior to November 1, 2002, the Fund was single class which was subsequently named Class Z shares. (d) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. (e) On sales of $50,000 or more the offering price is reduced. See Accompanying Notes to Financial Statements 124 & 125 STATEMENTS OF OPERATIONS - -------------------------------------------------------------------------------- COLUMBIA FUNDS FOR THE YEAR ENDED DECEMBER 31, 2002
Common International Stock Growth Stock Special Small Cap Fund Fund Fund Fund Fund ----------- ----------- ----------- ----------- ----------- NET INVESTMENT INCOME: Income: Interest .................. $ 229,515 $ 449,657 $ 114,715 $ 949,650 $ 681,219 Dividends ................. 6,711,144 7,349,063 2,157,855 1,644,758 1,321,481 Foreign withholding tax ... (18,265) (10,874) (91,099) (3,053) (2,089) ----------- ----------- ----------- ----------- ----------- Total income ............ 6,922,394 7,787,846 2,181,471 2,591,355 2,000,611 ----------- ----------- ----------- ----------- ----------- Expenses: Investment management fee .... 3,238,954 5,819,523 1,375,061 6,341,031 5,936,461 Distribution fee: Class B .................... 69 60 13,000 1,449 -- Class D .................... 22 21 677 255 -- Class G .................... -- 3,772 -- 274 -- Service fee: Class A .................... 1 486 7,932 165 -- Class B .................... 23 20 4,334 483 -- Class D .................... 7 7 226 85 -- Class G .................... -- 4,689 -- 126 -- Class T .................... -- -- -- 4,340 -- Transfer agent fee: Class A .................... 1 640 14,203 411 -- Class B .................... 33 14 27,810 1,716 -- Class D .................... 9 6 1,896 223 -- Class G .................... -- 2,860 -- 365 -- Class T .................... -- -- -- 7,348 -- Class Z .................... 1,046,415 1,789,843 473,231 1,238,675 1,088,066 Pricing and bookkeeping fees . 59,296 64,564 45,673 48,716 41,111 Director's fees .............. 6,703 23,235 1,405 7,892 5,650 Custody fee .................. 57,599 89,652 117,990 58,398 119,978 Registration fee ............. 28,103 59,990 24,550 96,632 48,305 Reports to shareholders ...... 120,051 218,259 60,152 129,814 41,000 Other expenses ............... 59,421 60,150 108,722 51,651 75,012 ----------- ----------- ----------- ----------- ----------- Total Expenses ............ 4,616,707 8,137,791 2,276,862 7,990,049 7,355,583 Expenses reimbursed by Advisor -- -- -- -- -- Fees waived by Distributor: Class D .................... -- -- -- -- -- Fees waived by Advisor: Class A .................... -- -- -- (7) -- Class B .................... -- -- (1,907) (232) -- Class D .................... -- -- (677) (30) -- Class G .................... -- -- -- -- -- Class T .................... -- -- -- -- -- Class Z .................... -- -- (28,388) (53,363) -- Custody earnings credit ...... (8,314) (15,433) (4,016) (8,834) (5,412) ----------- ----------- ----------- ----------- ----------- Net Expenses ................. 4,608,393 8,122,358 2,241,874 7,927,583 7,350,171 ----------- ----------- ----------- ----------- ----------- Net Investment Income (Loss) 2,314,001 (334,512) (60,403) (5,336,228) (5,349,560) ----------- ----------- ----------- ----------- ----------- Real Estate Strategic Short Term Equity Technology Value Balanced Bond Fund Fund Fund Fund Fund ------------ --------- ----------- ------------ ----------- NET INVESTMENT INCOME: Income: Interest .................. $ 930,645 $ 31,974 $ 1,027,689 $ 20,569,722 $ 4,691,435 Dividends ................. 39,529,407 8,964 3,593,016 5,952,089 -- Foreign withholding tax ... -- (31) (27,839) (18,441) -- ------------ --------- ----------- ------------ ----------- Total income ............ 40,460,052 40,907 4,592,866 26,503,370 4,691,435 ------------ --------- ----------- ------------ ----------- Expenses: Investment management fee .... 5,602,888 98,750 2,087,191 4,095,196 506,173 Distribution fee: Class B .................... 594 1 2,732 309 3,368 Class D .................... 252 1 443 269 3,336 Class G .................... -- -- -- -- 771 Service fee: Class A .................... 146 1 21,940 18 877 Class B .................... 198 1 911 103 1,123 Class D .................... 84 1 148 90 1,113 Class G .................... -- -- -- -- 178 Class T .................... -- -- -- -- 2,924 Transfer agent fee: Class A .................... 461 1 11,499 20 1,019 Class B .................... 617 1 2,822 116 1,342 Class D .................... 262 1 342 100 1,229 Class G .................... -- -- -- -- 848 Class T .................... -- -- -- -- 14,198 Class Z .................... 1,097,605 68,283 374,745 1,162,975 107,163 Pricing and bookkeeping fees . 56,126 29,778 30,577 83,151 34,964 Director's fees .............. 5,834 100 1,667 9,537 16,916 Custody fee .................. 46,397 16,384 62,349 73,391 12,842 Registration fee ............. 79,025 13,477 35,326 27,365 48,629 Reports to shareholders ...... 109,881 21,065 41,058 187,492 25,448 Other expenses ............... 69,201 32,788 52,893 79,594 -- ------------ --------- ----------- ------------ ----------- Total Expenses ............ 7,069,571 280,633 2,726,643 5,719,726 784,461 Expenses reimbursed by Advisor -- (116,580) -- -- (23,013) Fees waived by Distributor: Class D .................... -- -- -- -- (2,670) Fees waived by Advisor: Class A .................... -- -- -- -- -- Class B .................... -- -- (838) -- -- Class D .................... -- -- (89) -- -- Class G .................... -- -- -- -- -- Class T .................... -- -- -- -- -- Class Z .................... -- -- (10,434) -- -- Custody earnings credit ...... (4,979) (578) (2,643) (10,542) (3,853) ------------ --------- ----------- ------------ ----------- Net Expenses ................. 7,064,592 163,475 2,712,639 5,709,184 754,925 ------------ --------- ----------- ------------ ----------- Net Investment Income (Loss) 33,395,460 (122,568) 1,880,227 20,794,186 3,936,510 ------------ --------- ----------- ------------ ----------- Fixed National Oregon Income Municipal Municipal Daily Securities Bond Bond High Yield Income Fund Fund Fund Fund Company ------------ --------- ------------ ------------ ------------ NET INVESTMENT INCOME: Income: Interest .................. $ 27,993,729 $ 700,337 $ 25,331,023 $ 32,819,203 $ 21,497,684 Dividends ................. -- -- -- -- -- Foreign withholding tax ... -- -- -- (66,207) -- ------------ --------- ------------ ------------ ------------ Total income ............ 27,993,729 700,337 25,331,023 32,752,996 21,497,684 ------------ --------- ------------ ------------ ------------ Expenses: Investment management fee .... 2,477,847 73,374 2,513,517 2,629,803 5,671,913 Distribution fee: Class B .................... 716 45 285 9,437 -- Class D .................... 250 35 378 9,091 -- Class G .................... -- -- -- -- -- Service fee: Class A .................... 94 12 68 4,520 -- Class B .................... 239 15 95 3,146 -- Class D .................... 83 12 126 3,030 -- Class G .................... -- -- -- -- -- Class T .................... -- -- -- -- -- Transfer agent fee: Class A .................... 3 7 35 8,345 -- Class B .................... 8 9 51 5,748 -- Class D .................... 3 6 70 5,325 -- Class G .................... -- -- -- -- -- Class T .................... -- -- -- -- -- Class Z .................... 530,899 6,676 231,748 444,304 1,167,436 Pricing and bookkeeping fees . 55,757 32,316 62,828 50,847 42,461 Director's fees .............. 14,310 5,227 659 2,502 11,916 Custody fee .................. 40,354 3,213 25,443 29,635 213,473 Registration fee ............. 68,241 8,610 13,838 68,721 38,542 Reports to shareholders ...... 38,656 11,766 26,933 46,856 198,555 Other expenses ............... 100,130 27,747 50,598 61,857 48,626 ------------ --------- ------------ ------------ ------------ Total Expenses ............ 3,327,590 169,070 2,926,672 3,383,167 7,392,922 Expenses reimbursed by Advisor -- (70,759) -- -- -- Fees waived by Distributor: Class D .................... (50) (16) (176) (1,818) -- Fees waived by Advisor: Class A .................... -- -- -- -- -- Class B .................... -- -- -- -- -- Class D .................... -- -- -- -- -- Class G .................... -- -- -- -- -- Class T .................... -- -- -- -- -- Class Z .................... -- -- -- -- -- Custody earnings credit ...... (4,380) (1,370) (8,814) (5,818) (37,293) ------------ --------- ------------ ------------ ------------ Net Expenses ................. 3,323,160 96,925 2,917,682 3,375,531 7,355,629 ------------ --------- ------------ ------------ ------------ Net Investment Income (Loss) 24,670,569 603,412 22,413,341 29,377,465 14,142,055 ------------ --------- ------------ ------------ ------------
See Accompanying Notes to Financial Statements 126 & 127 STATEMENTS OF OPERATIONS - -------------------------------------------------------------------------------- COLUMBIA FUNDS FOR THE YEAR ENDED DECEMBER 31, 2002
Common International Stock Growth Stock Fund Fund Fund ------------- ------------- ------------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY: Net realized gain (loss) on: Investments ............................................ $ (76,671,127) $(234,361,212) $(16,827,005) Foreign currency transactions .......................... -- -- 459,446 Foreign capital gains tax .............................. -- -- (83,377) ------------- ------------- ------------ Net realized gain (loss) ........................... (76,671,127) (234,361,212) (16,450,936) ------------- ------------- ------------ Change in net unrealized appreciation/depreciation on: Investments ............................................ (87,529,297) (189,831,805) (5,185,756) Foreign currency translations .......................... -- -- 40,189 ------------- ------------- ------------ Net change in net unrealized appreciation/depreciation (87,529,297) (189,831,805) (5,145,567) ------------- ------------- ------------ Net gain (loss) ................................................ (164,200,424) (424,193,017) (21,596,503) ------------- ------------- ------------ NET INCREASE (DECREASE) RESULTING FROM OPERATIONS ............................................ $(161,886,423) $(424,527,529) $(21,656,906) ============= ============= ============ Real Estate Special Small Cap Equity Fund Fund Fund ------------- ------------- ------------ NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY: Net realized gain (loss) on: Investments ............................................ $ (89,710,944) $(116,601,064) $(12,684,181) Foreign currency transactions .......................... -- -- -- Foreign capital gains tax .............................. -- -- -- ------------- ------------- ------------ Net realized gain (loss) ........................... (89,710,944) (116,601,064) (12,684,181) ------------- ------------- ------------ Change in net unrealized appreciation/depreciation on: Investments ............................................ (104,900,709) (70,989,821) (5,589,540) Foreign currency translations .......................... -- -- -- ------------- ------------- ------------ Net change in net unrealized appreciation/depreciation (104,900,709) (70,989,821) (5,589,540) ------------- ------------- ------------ Net gain (loss) ................................................ (194,611,653) (187,590,885) (18,273,721) ------------- ------------- ------------ NET INCREASE (DECREASE) RESULTING FROM OPERATIONS ............................................ $(199,947,881) $(192,940,445) $ 15,121,739 ============= ============= ============ Strategic Technology Value Balanced Fund Fund Fund ----------- ------------ ------------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY: Net realized gain (loss) on: Investments ............................................ $(4,188,861) $(27,776,699) $ (71,176,504) Foreign currency transactions .......................... -- (81) -- Foreign capital gains tax .............................. -- -- -- ----------- ------------ ------------- Net realized gain (loss) ........................... (4,188,861) (27,776,780) (71,176,504) ----------- ------------ ------------- Change in net unrealized appreciation/depreciation on: Investments ............................................ (748,526) (13,657,736) (68,893,518) Foreign currency translations .......................... -- (151) -- ----------- ------------ ------------- Net change in net unrealized appreciation/depreciation (748,526) (13,657,887) (68,893,518) ----------- ------------ ------------- Net gain (loss) ................................................ (4,937,387) (41,434,667) (140,070,022) ----------- ------------ ------------- NET INCREASE (DECREASE) RESULTING FROM OPERATIONS ............................................ $(5,059,955) $(39,554,440) $(119,275,836) =========== ============ ============= Fixed National Short Term Income Municipal Bond Securities Bond Fund Fund Fund ----------- ------------ ---------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY: Net realized gain (loss) on: Investments ............................................ $ (5,253) $ (2,558,516) $ 88,597 Foreign currency transactions .......................... -- -- -- Foreign capital gains tax .............................. -- -- -- ----------- ------------ ---------- Net realized gain (loss) ........................... (5,253) (2,558,516) 88,597 ----------- ------------ ---------- Change in net unrealized appreciation/depreciation on: Investments ............................................ 2,802,185 14,601,556 631,224 Foreign currency translations .......................... -- -- -- ----------- ------------ ---------- Net change in net unrealized appreciation/depreciation 2,802,185 14,601,556 631,224 ----------- ------------ ---------- Net gain (loss) ................................................ 2,796,932 12,043,040 719,821 ----------- ------------ ---------- NET INCREASE (DECREASE) RESULTING FROM OPERATIONS ............................................ $ 6,733,442 $ 36,713,609 $1,323,233 =========== ============ ========== Oregon Municipal Daily Bond High Yield Income Fund Fund Company ----------- ------------ --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY: Net realized gain (loss) on: Investments ............................................ $ 3,932,577 $(27,771,338) $ -- Foreign currency transactions .......................... -- -- -- Foreign capital gains tax .............................. -- -- -- ----------- ------------ ----------- Net realized gain (loss) ........................... 3,932,577 (27,771,338) -- ----------- ------------ ----------- Change in net unrealized appreciation/depreciation on: Investments ............................................ 17,775,246 9,777,957 -- Foreign currency translations .......................... -- -- -- ----------- ------------ ----------- Net change in net unrealized appreciation/depreciation 17,775,246 9,777,957 -- ----------- ------------ ----------- Net gain (loss) ................................................ 21,707,823 (17,993,381) -- ----------- ------------ ----------- NET INCREASE (DECREASE) RESULTING FROM OPERATIONS ............................................ $44,121,164 $ 11,384,084 $14,142,055 =========== ============ ===========
See Accompanying Notes to Financial Statements 128 & 129 STATEMENTS OF CHANGES IN NET ASSETS - -------------------------------------------------------------------------------- COLUMBIA FUNDS
Common Stock Fund Growth Fund ------------------------------- ----------------------------------- Year Year Year Year Ended Ended Ended Ended December 31, December 31, December 31, December 31, 2002 (a) 2001 2002 (b) 2001 ------------- ------------- --------------- --------------- OPERATIONS: Net investment income (loss) ........................ $ 2,314,001 $ 2,393,365 $ (334,512) $ (1,006,495) Net realized loss from investments and foreign currency transactions ..................... (76,671,127) (53,093,579) (234,361,212) (197,532,848) Net change in unrealized appreciation/depreciation on investments and foreign currency translations ..... (87,529,297) (104,551,117) (189,831,805) (197,525,517) ------------- ------------- --------------- --------------- Net decrease resulting from operations .............. (161,886,423) (155,251,331) (424,527,529) (396,064,860) DISTRIBUTIONS TO SHAREHOLDERS: From net investment income: Class A ........................................... (24) -- -- -- Class B ........................................... (365) -- -- -- Class D ........................................... (105) -- -- -- Class Z ........................................... (2,325,116) (2,384,042) -- -- From net realized gains: Class Z ........................................... -- (568,973) -- (6,365,332) Return of capital ................................... -- -- -- -- ------------- ------------- --------------- --------------- Total distributions to shareholders ................... (2,325,610) (2,953,015) -- (6,365,332) ------------- ------------- --------------- --------------- NET CAPITAL SHARE TRANSACTIONS ........................ (100,375,770) (55,532,294) (72,669,754) (190,952,344) ------------- ------------- --------------- --------------- Net increase (decrease) in net assets ................. (264,587,803) (213,736,640) (497,197,283) (593,382,536) NET ASSETS: Beginning of period ................................. 681,397,179 895,133,819 1,325,844,397 1,919,226,933 ------------- ------------- --------------- --------------- End of period ....................................... $ 416,809,376 $ 681,397,179 $ 828,647,114 $ 1,325,844,397 ============= ============= =============== =============== Undistributed (overdistributed) net investment income (loss) at end of period ............................. $ -- $ 6,772 $ -- $ -- ============= ============= =============== =============== International Stock Fund ------------------------------- Year Year Ended Ended December 31, December 31, 2002 (a) 2001 ------------- ------------- OPERATIONS: Net investment income (loss) ........................ $ (60,403) $ 95,519 Net realized loss from investments and foreign currency transactions ..................... (16,450,936) (25,454,741) Net change in unrealized appreciation/depreciation on investments and foreign currency translations ..... (5,145,567) (7,034,708) ------------- ------------- Net decrease resulting from operations .............. (21,656,906) (32,393,930) DISTRIBUTIONS TO SHAREHOLDERS: From net investment income: Class A ........................................... -- -- Class B ........................................... -- -- Class D ........................................... -- -- Class Z ........................................... (102,850) -- From net realized gains: Class Z ........................................... -- -- Return of capital ................................... (403,799) (131,448) ------------- ------------- Total distributions to shareholders ................... (506,649) (131,448) ------------- ------------- NET CAPITAL SHARE TRANSACTIONS ........................ 61,510,684 (7,165,160) ------------- ------------- Net increase (decrease) in net assets ................. 39,347,129 (39,690,538) NET ASSETS: Beginning of period ................................. 135,625,845 175,316,383 ------------- ------------- End of period ....................................... $ 174,972,974 $ 135,625,845 ============= ============= Undistributed (overdistributed) net investment income (loss) at end of period ............................. $ (14,405) $ (298,209) ============= =============
See Accompanying Notes to Financial Statements 130 STATEMENTS OF CHANGES IN NET ASSETS - -------------------------------------------------------------------------------- COLUMBIA FUNDS
Special Fund Small Cap Fund --------------------------------- ------------------------------- Year Year Year Year Ended Ended Ended Ended December 31, December 31, December 31, December 31, 2002 (c) 2001 2002 2001 ------------- --------------- ------------- ------------- OPERATIONS: Net investment income (loss) ......................... $ (5,336,228) $ (4,280,083) $ (5,349,560) $ (3,669,866) Net realized loss on investments ..................... (89,710,944) (128,113,140) (116,601,064) (102,071,551) Net change in net unrealized appreciation/depreciation on investments ..................................... (104,900,709) (102,085,000) (70,989,821) 29,412,742 ------------- --------------- ------------- ------------- Net increase (decrease) resulting from operations .... (199,947,881) (234,478,223) (192,940,445) (76,328,675) DISTRIBUTIONS TO SHAREHOLDERS: From net investment income: Class A ............................................ -- -- -- -- Class B ............................................ -- -- -- -- Class D ............................................ -- -- -- -- Class Z ............................................ -- -- -- -- From net realized gains: Class Z ............................................ -- (36,110,869) -- -- Return of capital .................................... -- -- -- -- ------------- --------------- ------------- ------------- Total distributions to shareholders .................... -- (36,110,869) -- -- ------------- --------------- ------------- ------------- NET CAPITAL SHARE TRANSACTIONS ......................... 252,934,343 (38,864,440) 68,005,564 175,324,624 ------------- --------------- ------------- ------------- Net increase (decrease) in net assets .................. 52,986,462 (309,453,532) (124,934,881) 98,995,949 NET ASSETS: Beginning of period .................................. 786,071,234 1,095,524,766 617,965,949 518,970,000 ------------- --------------- ------------- ------------- End of period ........................................ $ 839,057,696 $ 786,071,234 $ 493,031,068 $ 617,965,949 ============= =============== ============= ============= Undistributed (overdistributed) net investment income (loss) at end of period .............................. $ (3,410) $ -- $ 180,997 $ -- ============= =============== ============= ============= Real Estate Equity Fund ------------------------------- Year Year Ended Ended December 31, December 31, 2002 (a) 2001 ------------- ------------- OPERATIONS: Net investment income (loss) ......................... $ 33,395,460 $ 23,283,934 Net realized loss on investments ..................... (12,684,181) (6,107,580) Net change in net unrealized appreciation/depreciation on investments ..................................... (5,589,540) 11,518,503 ------------- ------------- Net increase (decrease) resulting from operations .... 15,121,739 28,694,857 DISTRIBUTIONS TO SHAREHOLDERS: From net investment income: Class A ............................................ (11,804) -- Class B ............................................ (12,009) -- Class D ............................................ (4,519) -- Class Z ............................................ (29,889,702) (21,221,990) From net realized gains: Class Z ............................................ -- -- Return of capital .................................... (3,915,328) (2,074,000) ------------- ------------- Total distributions to shareholders .................... (33,833,362) (23,295,990) ------------- ------------- NET CAPITAL SHARE TRANSACTIONS ......................... 174,112,297 179,426,753 ------------- ------------- Net increase (decrease) in net assets .................. 155,400,674 184,825,620 NET ASSETS: Beginning of period .................................. 621,589,834 436,764,214 ------------- ------------- End of period ........................................ $ 776,990,508 $ 621,589,834 ============= ============= Undistributed (overdistributed) net investment income (loss) at end of period .............................. $ 5,750,071 $ -- ============= =============
See Accompanying Notes to Financial Statements 131 STATEMENTS OF CHANGES IN NET ASSETS - -------------------------------------------------------------------------------- COLUMBIA FUNDS
Technology Fund Strategic Value Fund ----------------------------- ------------------------------- Year Year Year Year Ended Ended Ended Ended December 31, December 31, December 31, December 31, 2002 (a) 2001 2002 (a) 2001 ------------ ------------ ------------- ------------- OPERATIONS: Net investment income (loss) ............................... $ (122,568) $ (129,446) $ 1,880,227 $ 513,914 Net realized loss from investments and foreign currency transactions ............................ (4,188,861) (4,781,663) (27,776,780) (39,305) Net change in unrealized appreciation/depreciation on investments and foreign currency translations ............ (748,526) 1,379,718 (13,657,887) 14,416,240 ------------ ------------ ------------- ------------- Net increase (decrease) resulting from operations .......... (5,059,955) (3,531,391) (39,554,440) 14,890,849 DISTRIBUTIONS TO SHAREHOLDERS: From net investment income: Class Z .................................................. -- -- (1,839,312) (503,110) From net realized gains: Class Z ................................................. -- -- (376,144) -- ------------ ------------ ------------- ------------- Total distributions to shareholders .......................... -- -- (2,215,456) (503,110) ------------ ------------ ------------- ------------- NET CAPITAL SHARE TRANSACTIONS ............................... 2,738,412 9,588,998 168,107,411 115,589,966 ------------ ------------ ------------- ------------- Net increase (decrease) in net assets ........................ (2,321,543) 6,057,607 126,337,515 129,977,705 NET ASSETS: Beginning of period ........................................ 10,385,063 4,327,456 139,503,705 9,526,000 ------------ ------------ ------------- ------------- End of period .............................................. $ 8,063,520 $ 10,385,063 $ 265,841,220 $ 139,503,705 ============ ============ ============= ============= Undistributed (overdistributed) net investment income (loss) at end of period .................................... $ -- $ -- $ 62,338 $ 1,192 ============ ============ ============= =============
See Accompanying Notes to Financial Statements 132 STATEMENTS OF CHANGES IN NET ASSETS - -------------------------------------------------------------------------------- COLUMBIA FUNDS
Balanced Fund Short Term Bond Fund --------------------------------- ------------------------------ Year Year Year Year Ended Ended Ended Ended December 31, December 31, December 31, December 31, 2002 (a) 2001 2002 (c) 2001 ------------- --------------- ------------- ------------ OPERATIONS: Net investment income ................................ $ 20,794,186 $ 27,848,891 $ 3,936,510 $ 2,396,760 Net realized gain (loss) on investments .............. (71,176,504) (61,040,549) (5,253) 622,536 Net change in net unrealized appreciation/depreciation on investments ..................................... (68,893,518) (51,965,235) 2,802,185 94,561 ------------- --------------- ------------- ------------ Net increase (decrease) resulting from operations .... (119,275,836) (85,156,893) 6,733,442 3,113,857 DISTRIBUTIONS TO SHAREHOLDERS: From net investment income: Class A ............................................ (693) -- (7,886) -- Class B ............................................ (2,254) -- (6,548) -- Class D ............................................ (1,798) -- (9,865) -- Class G ............................................ -- -- (2,198) -- Class T ............................................ -- -- (48,546) -- Class Z ............................................ (21,201,650) (28,272,449) (3,843,068) (2,396,760) From net realized gains: Class Z ............................................ -- -- (18,783) (107,979) ------------- --------------- ------------- ------------ Total distributions to shareholders .................... (21,206,395) (28,272,449) (3,936,894) (2,504,739) ------------- --------------- ------------- ------------ NET CAPITAL SHARE TRANSACTIONS ......................... (173,776,980) (29,677,522) 301,621,677 26,464,147 ------------- --------------- ------------- ------------ Net increase (decrease) in net assets .................. (314,259,211) (143,106,864) 304,418,225 27,073,265 NET ASSETS: Beginning of period .................................. 983,749,294 1,126,856,158 62,929,605 35,856,340 ------------- --------------- ------------- ------------ End of period ........................................ $ 669,490,083 $ 983,749,294 $ 367,347,830 $ 62,929,605 ============= =============== ============= ============ Undistributed (overdistributed) net investment income (loss) at end of period .............................. $ (355,183) $ (423,558) $ (204,761) $ -- ============= =============== ============= ============ Fixed Income Securities Fund ------------------------------ Year Year Ended Ended December 31, December 31, 2002 (a) 2001 ------------- ------------- OPERATIONS: Net investment income ................................ $ 24,670,569 $ 24,965,892 Net realized gain (loss) on investments .............. (2,558,516) 6,420,005 Net change in net unrealized appreciation/depreciation on investments ..................................... 14,601,556 1,195,478 ------------- ------------- Net increase (decrease) resulting from operations .... 36,713,609 32,581,375 DISTRIBUTIONS TO SHAREHOLDERS: From net investment income: Class A ............................................ (1,157) -- Class B ............................................ (2,638) -- Class D ............................................ (1,013) -- Class G ............................................ -- -- Class T ............................................ -- -- Class Z ............................................ (25,339,044) (25,535,189) From net realized gains: Class Z ............................................ -- -- ------------- ------------- Total distributions to shareholders .................... (25,343,852) (25,535,189) ------------- ------------- NET CAPITAL SHARE TRANSACTIONS ......................... 73,248,344 79,897,819 ------------- ------------- Net increase (decrease) in net assets .................. 84,618,101 86,944,005 NET ASSETS: Beginning of period .................................. 465,743,499 378,799,494 ------------- ------------- End of period ........................................ $ 550,361,600 $ 465,743,499 ============= ============= Undistributed (overdistributed) net investment income (loss) at end of period .............................. $ (885,594) $ (569,297) ============= =============
See Accompanying Notes to Financial Statements 133 STATEMENTS OF CHANGES IN NET ASSETS - -------------------------------------------------------------------------------- COLUMBIA FUNDS
National Municipal Oregon Municipal Bond Fund Bond Fund ----------------------------- ------------------------------- Year Year Year Year Ended Ended Ended Ended December 31, December 31, December 31, December 31, 2002 (a) 2001 2002 (a) 2001 ------------ ------------ ------------- ------------- OPERATIONS: Net investment income ................................ $ 603,412 $ 531,656 $ 22,413,341 $ 22,217,485 Net realized gain (loss) on investments .............. 88,597 83,654 3,932,577 2,447,215 Net change in net unrealized appreciation/depreciation on investments ..................................... 631,224 (163,394) 17,775,246 (3,897,358) ------------ ------------ ------------- ------------- Net increase resulting from operations ............... 1,323,233 451,916 44,121,164 20,767,342 DISTRIBUTIONS TO SHAREHOLDERS: From net investment income : Class A ............................................ (200) -- (932) -- Class B ............................................ (232) -- (1,094) -- Class D ............................................ (147) -- (1,673) -- Class Z ............................................ (598,784) (533,303) (22,348,370) (22,200,818) From net realized gains: Class A ............................................ (230) -- (1,987) -- Class B ............................................ (784) -- (2,513) -- Class D ............................................ (220) -- (2,990) -- Class Z ............................................ (66,172) (25,261) (5,015,648) (1,099,872) ------------ ------------ ------------- ------------- Total distributions to shareholders .................... (666,769) (558,564) (27,375,207) (23,300,690) ------------ ------------ ------------- ------------- NET CAPITAL SHARE TRANSACTIONS ......................... 2,233,945 2,977,494 1,779,138 57,627,221 ------------ ------------ ------------- ------------- Net increase in net assets ............................. 2,890,409 2,870,846 18,525,095 55,093,873 NET ASSETS: Beginning of period .................................. 13,768,846 10,898,000 491,637,873 436,544,000 ------------ ------------ ------------- ------------- End of period ........................................ $ 16,659,255 $ 13,768,846 $ 510,162,968 $ 491,637,873 ============ ============ ============= ============= Undistributed (overdistributed) net investment income (loss) at end of period .............................. $ 4,896 $ (1,647) $ 131,976 $ 16,667 ============ ============ ============= ============= High Yield Fund ------------------------------- Year Year Ended Ended December 31, December 31, 2002 (a) 2001 ------------- ------------- OPERATIONS: Net investment income ................................ $ 29,377,465 $ 13,585,926 Net realized gain (loss) on investments .............. (27,771,338) (6,978,717) Net change in net unrealized appreciation/depreciation on investments ..................................... 9,777,957 2,694,000 ------------- ------------- Net increase resulting from operations ............... 11,384,084 9,301,209 DISTRIBUTIONS TO SHAREHOLDERS: From net investment income : Class A ............................................ (111,753) -- Class B ............................................ (63,166) -- Class D ............................................ (57,867) -- Class Z ............................................ (30,110,118) (13,865,815) From net realized gains: Class A ............................................ -- -- Class B ............................................ -- -- Class D ............................................ -- -- Class Z ............................................ -- -- ------------- ------------- Total distributions to shareholders .................... (30,342,904) (13,865,815) ------------- ------------- NET CAPITAL SHARE TRANSACTIONS ......................... 551,477,756 145,983,569 ------------- ------------- Net increase in net assets ............................. 532,518,936 141,418,963 NET ASSETS: Beginning of period .................................. 238,993,841 97,574,878 ------------- ------------- End of period ........................................ $ 771,512,777 $ 238,993,841 ============= ============= Undistributed (overdistributed) net investment income (loss) at end of period .............................. $ (989,027) $ (279,889) ============= =============
See Accompanying Notes to Financial Statements 134 STATEMENTS OF CHANGES IN NET ASSETS - -------------------------------------------------------------------------------- COLUMBIA FUNDS
Daily Income Company ----------------------------------- Year Year Ended Ended December 31, December 31, 2002 2001 --------------- --------------- OPERATIONS: Net investment income ...................................................... $ 14,142,055 $ 45,229,610 Net realized gain (loss) on investments and foreign currency transactions .................................................... -- -- Net change in net unrealized appreciation/depreciation on investments and foreign currency translations ............................ -- -- --------------- --------------- Net increase resulting from operations ..................................... 14,142,055 45,229,610 DISTRIBUTIONS TO SHAREHOLDERS: From net investment income : Class Z .................................................................. (14,142,055) (45,229,610) --------------- --------------- NET CAPITAL SHARE TRANSACTIONS ............................................... (117,460,299) 55,384,628 --------------- --------------- Net increase (decrease) in net assets ........................................ (117,460,299) 55,384,628 NET ASSETS: Beginning of period ........................................................ 1,253,535,197 1,198,150,569 --------------- --------------- End of period .............................................................. $ 1,136,074,898 $ 1,253,535,197 =============== =============== Undistributed net investment income at end of period ......................... $ -- $ -- =============== ===============
(a) Effective November 1, 2002, the Fund began offering four classes of shares: Class A, Class B, Class D and Class Z shares. Prior to November 1, 2002, the Fund was single class, which was subsequently named Class Z shares. (b) Effective November 1, 2002, the Fund began offering five classes of shares: Class A, Class B, Class D, Class G and Class Z shares. Prior to November 1, 2002, the Fund was single class, which was subsequently named Class Z shares. (c) Effective November, 1, 2002, the Fund began offering six classes of shares: Class A, Class B, Class D, Class G, Class T and Class Z shares. Prior to November 1, 2002, the Fund was single class, which was subsequently named Class Z shares. See Accompanying Notes to Financial Statements 135 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- NOTE 1 -- ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES The Columbia Funds (the "Funds") consist of the following: Columbia Common Stock Fund, Inc. Columbia Growth Fund, Inc. Columbia International Stock Fund, Inc. Columbia Special Fund, Inc. Columbia Small Cap Fund, Inc. Columbia Real Estate Equity Fund, Inc. Columbia Technology Fund, Inc. Columbia Strategic Value Fund, Inc. Columbia Balanced Fund, Inc. Columbia Short Term Bond Fund, Inc. Columbia Fixed Income Securities Fund, Inc. Columbia National Municipal Bond Fund, Inc. Columbia Oregon Municipal Bond Fund, Inc. Columbia High Yield Fund, Inc. Columbia Daily Income Company All Funds are open-end investment companies registered under the Investment Company Act of 1940, as amended, and are diversified except for the Columbia Real Estate Fund, Columbia Technology Fund and Columbia Oregon Municipal Bond Fund, which are non-diversified. Effective November 1, 2002, each of the Funds, except Columbia Growth Fund, Columbia Special Fund, Columbia Small Cap Fund, Columbia Short Term Bond Fund and Columbia Daily Income Company, offers four classes of shares: Class A, Class B, Class D and Class Z. The Columbia Small Cap Fund and Columbia Daily Income Company offer only Class Z shares. The Columbia Growth Fund offers five classes of shares: Class A, Class B, Class D, Class G and Class Z shares. The Columbia Special Fund and Columbia Short Term Bond Fund offer six classes of shares: Class A, Class B, Class D, Class G, Class T and Class Z shares. Prior to November 1, 2002, each Fund was single class, which was subsequently named Class Z shares. Class A and Class T shares are sold with a front-end sales charge. A 1.00% contingent deferred sales charge ("CDSC") is assessed to Class A and Class T shares purchased without an initial sales charge on redemptions made within eighteen months of an original purchase of $1 million to $25 million. Class B shares are subject to a CDSC. Class B shares will convert to Class A shares in three, four or eight years after purchase, depending on the program under which shares were purchased. Class D shares are sold with a front-end sales charge and a 1.00% CDSC on redemptions made within one year after purchase. Class G shares are subject to a CDSC. Class G shares will convert to Class T shares eight years after purchase. Class Z shares are offered continuously at net asset value. There are certain restrictions on the purchase of Class Z shares, as described in each Fund's prospectus. As of the end of business on December 6, 2002, the Galaxy Large Cap Growth Fund merged into the Columbia Growth Fund as follows: Net Assets of the Galaxy Large Shares Cap Growth Fund Unrealized Issued Received Depreciation(1) ------ -------- --------------- 4,943,168 $ 108,315,198 $ (8,049,749) Net Assets Net Assets Net Assets of the of the of the Galaxy Large Columbia Growth Columbia Growth Cap Growth Fund Fund Fund Immediately Immediately Prior to Prior to After Combination Combination Combination ----------- ----------- ----------- $ 798,985,765 $ 108,315,198 $ 907,300,963 As of the end of business on November 1, 2002, the Stein Roe International Fund ("SRIF") and Liberty Newport International Fund ("LNIF") merged into the Columbia International Stock Fund as follows: Net Assets Shares of SRIF and LNIF Unrealized Issued Received Depreciation(1) ------ -------- --------------- SRIF 1,426,029 $ 14,246,030 $ (214,705) LNIF 3,200,017 31,968,172 (948,177) Net Assets of the Net Assets Net Assets Columbia of the of International Columbia International SRIF and LNIF Stock Fund Stock Fund Immediately Immediately Prior to Prior to After Combination Combination Combination ----------- ----------- ----------- $125,693,014 $ 46,214,202 $ 171,907,216 136 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- As of the end of business on November 1, 2002, the Liberty Midcap Growth Fund ("LMCGF"), Galaxy Growth II Fund ("GGIIF") and Stein Roe Capital Opportunities Fund ("SRCOF") merged into the Columbia Special Fund as follows: Net Assets of LMCGF, Shares GGIIF and SRCOF Unrealized Issued Received Appreciation(1) ------ -------- --------------- LMCGF 1,926,436 $ 29,609,516 $ 1,312,196 GGIIF 3,693,522 56,786,294 419,666 SRCOF 13,391,313 205,776,298 4,912,798 Net Assets Net Assets Net Assets of the of the of LMCGF, Columbia Special Columbia Special GGIIF and SRCOF Fund Fund Immediately Immediately Prior to Prior to After Combination Combination Combination ----------- ----------- ----------- $ 588,307,694 $ 292,172,108 $ 880,479,802 As of the end of business on November 1, 2002, the Liberty Contrarian Fund ("LCF") and Liberty Contrarian Equity Fund ("LCEF") merged into the Columbia Strategic Value Fund as follows: Net Assets of LCF Shares and LCEF Unrealized Issued Received Depreciation(1) ------ -------- --------------- LCF 249,129 $ 3,236,185 $ (374,279) LCEF 4,319,838 56,114,694 (7,312,321) Net Assets Net Assets Net Assets of the of the of LCF Columbia Strategic Columbia Strategic and LCEF Value Fund Value Fund Immediately Immediately Prior to Prior to After Combination Combination Combination ----------- ----------- ----------- $ 216,528,060 $ 59,350,879 $ 275,878,939 As of the end of business on December 6, 2002, the Galaxy Short Term Bond Fund merged into the Columbia Short Term Bond Fund as follows: Net Assets of the Galaxy Short Term Shares Bond Fund Unrealized Issued Received Appreciation(1) ------ -------- --------------- 25,924,097 $ 223,465,181 $ 3,331,362 Net Assets Net Assets of the Net Assets of the Columbia of the Galaxy Short Term Short Term Columbia Short Term Bond Fund Bond Fund Bond Fund Immediately Immediately Prior to Prior to After Combination Combination Combination ----------- ----------- ----------- $ 125,747,136 $ 223,465,181 $ 349,212,317 (1) Unrealized appreciation/depreciation is included in the respective Net Assets Received amounts shown above. Differing amortization policies between the Columbia Short Term Bond Fund and the Galaxy Short Term Bond Fund resulted in the following reclassification: Unrealized Appreciation Accumulated (Depreciation) Gain (Loss) Paid-in Capital -------------- ----------- --------------- $ 124,484 $ 98,651 $ (223,135) Net investment income, net realized gain (loss) and net assets were not affected by this reclassification. The following is a summary of significant accounting policies, in conformity with generally accepted accounting principles, which are consistently followed by the Funds in the preparation of their financial statements. Investment valuation. Equity securities are valued based on the last sale prices reported 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. If any foreign share prices are not readily available as a result of limited share activity, the securities are valued at the last sale price of the local shares in the principal market in which such securities are normally traded. Fixed income securities are valued based on market values as quoted by dealers who are market makers in these securities, by independent pricing services, or by the adviser using a methodology approved by the Board of Directors. Such services may use various pricing techniques which take into account appropriate factors such as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other data, as well as broker quotes. Certain securities, which tend to be more thinly traded and of lesser quality, are priced based on fundamental analysis of the financial condition of the issuer and the estimated value of any collateral. Valuations developed through pricing techniques may vary from the actual amounts realized upon sale of the securities, and the potential variation may be greater for 137 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- NOTE 1 -- ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONT.) those securities valued using fundamental analysis. Investment securities with less than 60 days to maturity when purchased and all securities held by Columbia Daily Income Company, are valued at amortized cost, which approximates market value. Securities for which market quotations are not readily available will be valued at fair market value as determined in good faith under procedures established by and under the general supervision of the Board of Directors of each Fund. Foreign currency exchange rates are also generally determined prior to the close of the New York Stock Exchange. Occasionally, events affecting the values of such securities and such exchange rates may occur between the times at which they are determined and the close of the customary trading session of the New York Stock Exchange, which would not be reflected in the computation of the Funds' net asset value. If events materially affecting the value of such securities and such exchange rates occur during such period, then these securities will be valued at their fair value as determined in good faith by or under the supervision of the Board of Directors. Repurchase agreements. The Funds may engage in repurchase agreement transactions. The Funds, through their custodian, receive delivery of underlying securities collateralizing repurchase agreements. The Funds' investment advisor determines that the value of the underlying securities is at all times at least equal to the resale price. In the event of default or bankruptcy by the other party to the agreement, realization and/or retention of the collateral may be subject to legal proceedings. Financial futures contracts. Certain Funds may invest in financial futures contracts solely for the purpose of hedging their existing portfolio securities, or securities that the Funds intend to purchase, against fluctuations in fair value caused by changes in prevailing market interest rates. Upon entering into a financial futures contract, a fund is required to pledge to the broker an amount of cash, U.S. government securities or other assets, equal to a certain percentage of the contract amount (initial margin deposit). Subsequent payments, known as "variation margin," are made or received by a fund each day, depending on the daily fluctuations in the fair value of the underlying security. A fund recognizes an unrealized gain or loss equal to the daily variation margin. Should market conditions move unexpectedly, a fund may not achieve the anticipated benefits of the financial futures contracts and may realize a loss. The use of futures transactions involves the risk of imperfect correlation in movements in the price of futures contracts interest rates, and the underlying assets. The daily changes in contract value are recorded as unrealized gains or losses, and a fund recognizes the realized gain or loss when the contract is closed. Investment transactions. Investment transactions are accounted for as of the date the investments are purchased or sold. Net realized gains and losses are determined on the identified cost basis, which is also used for federal income tax purposes. Securities purchased on a when-issued or forward-delivery basis may be settled a month or more after trade date; interest income is not accrued until settlement date. Each of the Funds will segregate liquid assets with a current value at least equal to the amount of its when-issued purchase commitments until settlement date. Investment income and expenses. Dividend income less foreign taxes withheld (if any) is recorded on the ex-dividend date. Certain dividends from foreign securities will be recorded as soon as the fund is informed of the dividend if such information is obtained subsequent to the ex-dividend date. Interest income is recorded on the accrual basis and includes accretion of discounts, amortization of premiums and paydown gains and losses. Expenses are recorded on the accrual basis and each fund bears expenses incurred specifically on its behalf as well as a portion of general expenses incurred on behalf of all Funds. Determination of Class Net Asset Values and Financial Highlights. All income, expenses (other than class specific fees), and 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. Per share data and ratios are calculated by adjusting the expense and net investment income per share data and ratios for a fund for the entire period by the class specific fees applicable to each class of shares in that fund. Forward currency exchange contracts. Certain Funds may enter into forward currency exchange contracts in connection with planned purchases or sales of securities or to hedge the U.S. dollar value of the portfolio securities denominated in a foreign currency. Contracts are valued at the prevailing forward exchange rate of the underlying currencies. The gain or loss arising from the difference between the original contract price and the closing 138 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- price of such contract is included in the net realized gains or losses from foreign currency transactions. Fluctuations in the value of forward currency contracts are recorded for financial reporting purposes as unrealized gains or losses. The Funds could be exposed to risks if counterparties to the forward contracts are unable to meet the terms of their contracts or if the value of the foreign currency changes unfavorably. The effect of any change in the value of a hedged foreign currency would be offset by the corresponding change (resulting from a change in exchange rates) in value of the securities denominated in that currency. For the Columbia International Stock Fund, net realized gains arising from such transactions for the year ended December 31, 2002, amounted to $505,950 and are included in realized gains from foreign currency transactions. As of December 31, 2002, the Funds had no outstanding forward currency contracts. Foreign currency translations. The books and records of the Columbia International Stock Fund are maintained in U.S. dollars. Foreign currencies, investments and other assets and liabilities of the Funds are translated into U.S. dollars at the daily rates of exchange on the valuation date. Purchases and sales of investment securities, dividend and interest income and certain expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. The Columbia International Stock Fund does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices on investments held. Such fluctuations are included with the net realized and unrealized gain or loss from investments. Reported net realized foreign currency gains or losses arise from the sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalents of the amounts actually received or paid. Net unrealized foreign exchange gains or losses arise from changes in the value of assets and liabilities, other than investments in securities, resulting from changes in the exchange rate. Use of estimates. The preparation of the financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. Dividends and distributions to shareholders. Dividends from net investment income of the Columbia Real Estate Equity Fund and Columbia Balanced Fund are declared and paid quarterly. Dividends from net investment income of the Columbia Common Stock Fund, Columbia Growth Fund, Columbia International Stock Fund, Columbia Special Fund, Columbia Small Cap Fund, Columbia Technology Fund and Columbia Strategic Value Fund are declared and paid annually. Dividends from net investment income of the Columbia Short Term Bond Fund, Columbia Fixed Income Securities Fund, Columbia National Municipal Bond Fund, Columbia Oregon Municipal Bond Fund, and Columbia High Yield Fund are declared daily and paid monthly. Dividends from net investment income of the Columbia Daily Income Company are declared and paid daily. Distributions from any net realized gains are generally declared and paid annually. Additional distributions of net investment income and capital gains for each of the Funds may be made at the discretion of the Board of Directors in accordance with federal income tax regulations. Federal income taxes. Each of the Funds intends to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies by distributing substantially all taxable net investment income and net realized gains to its shareholders in a manner that results in no tax to the Funds. Therefore, no federal income or excise tax provision is required. Foreign capital gains taxes. Realized gains in certain countries may be subject to foreign taxes at the fund level, at rates ranging from approximately 10% to 30%. The Funds provide for such foreign taxes on net realized and unrealized gains at the appropriate rate for each jurisdiction. Other. There are certain additional risks involved when investing in foreign securities that are not inherent with investments in domestic securities. These risks may involve foreign currency exchange rate fluctuations, adverse political and economic developments and the possible prevention of currency exchange or other foreign governmental laws or restrictions. 139 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- NOTE 1 -- ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONT.) For the Columbia Oregon Municipal Fund there are certain risks arising from geographic concentration in any one state. Certain revenue or tax related events in a state may impair the ability of certain issuers of municipal securities to pay principal and interest on their obligations. Also, certain non-diversified funds may focus their investments in certain industries, subjecting them to greater risk than a fund that is more diversified. The Columbia High Yield Fund invests in lower rated debt securities, which may be more susceptible to adverse economic conditions than investment grade holdings. These securities are often subordinated to the prior claims of other senior lenders, and uncertainties exist as to an issuer's ability to meet principal and interest payments. The Columbia High Yield Fund previously held Flooring America, Inc., 12.75% Senior Subordinate Notes, Series B, due 10/15/2002. Flooring America filed a bankruptcy petition for reorganization on June 15, 2000. Prior to the bankruptcy petition, the Fund received payments for interest and a partial tender of the Bonds. Flooring America filed a petition for return of these payments. In April 2002, the Fund reached settlement with the bankruptcy trustee and has agreed to return a portion of the payments received for the interest and partial tender of the bonds. This settlement is included in the Statements of Assets and Liabilities as "Litigation settlement payable." 140 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- NOTE 2 -- INVESTMENT TRANSACTIONS As of December 31, 2002, for federal income tax purposes, unrealized appreciation (depreciation) of investments was as follows:
Net Unrealized Unrealized Unrealized Appreciation Appreciation Depreciation (Depreciation) ------------ ------------ -------------- Columbia Common Stock Fund ................................ $27,987,033 $(27,788,808) $ 198,225 Columbia Growth Fund ...................................... 32,761,603 (34,166,129) (1,404,526) Columbia International Stock Fund ......................... 9,094,157 (14,175,018) (5,080,861) Columbia Special Fund ..................................... 66,120,658 (47,536,593) 18,584,065 Columbia Small Cap Fund ................................... 49,905,899 (31,533,921) 18,371,978 Columbia Real Estate Equity Fund .......................... 87,124,800 (22,408,459) 64,716,341 Columbia Technology Fund .................................. 557,573 (387,155) 170,418 Columbia Strategic Value Fund ............................. 16,856,477 (26,059,780) (9,203,303) Columbia Balanced Fund .................................... 42,290,864 (29,213,243) 13,077,621 Columbia Short Term Bond Fund ............................. 6,977,776 (174,038) 6,803,738 Columbia Fixed Income Securities Fund ..................... 24,100,467 (1,026,399) 23,074,068 Columbia National Municipal Bond Fund ..................... 774,198 (16,004) 758,194 Columbia Oregon Municipal Bond Fund ....................... 27,022,694 (2,396,980) 24,625,714 Columbia High Yield Fund .................................. 12,995,081 (5,028,069) 7,967,012
During the year ended December 31, 2002, purchases and sales of investments, other than short-term obligations, were as follows:
Purchases Sales -------------- -------------- Columbia Common Stock Fund ............................................. $ 567,524,563 $ 638,422,612 Columbia Growth Fund ................................................... 1,600,687,283 1,712,205,608 Columbia International Stock Fund ...................................... 123,368,192 117,872,950 Columbia Special Fund .................................................. 732,299,181 538,051,393 Columbia Small Cap Fund ................................................ 681,380,834 604,224,619 Columbia Real Estate Equity Fund ....................................... 548,962,330 368,354,330 Columbia Technology Fund ............................................... 47,895,521 45,517,976 Columbia Strategic Value Fund .......................................... 510,700,187 402,210,132 Columbia Balanced Fund ................................................. 779,326,703 797,377,376 Columbia Short Term Bond Fund .......................................... 235,034,329 147,053,298 Columbia Fixed Income Securities Fund .................................. 497,908,329 476,792,608 Columbia National Municipal Bond Fund .................................. 8,256,918 5,948,763 Columbia Oregon Municipal Bond Fund .................................... 108,664,154 101,338,785 Columbia High Yield Fund ............................................... 604,034,963 159,231,211
During the year ended December 31, 2002, purchases and sales of U.S. Government securities were as follows:
Purchases Sales -------------- -------------- Columbia Common Stock Fund ............................................. $ 2,718,414 $ 2,589,306 Columbia Growth Fund ................................................... 17,830,106 7,653,091 Columbia Balanced Fund ................................................. 276,440,724 323,535,835 Columbia Short Term Bond Fund .......................................... 119,363,163 99,038,152 Columbia Fixed Income Securities Fund .................................. 504,394,133 463,635,935
141 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- NOTE 3 -- FEDERAL TAX INFORMATION Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. These differences are primarily due to differing treatments for deferral of losses from wash sales, discount accretion/premium amortization on debt securities, straddle deferrals, current year distribution payable, foreign currency transactions, net operating losses, passive foreign investment companies, capital loss carryforwards, non-deductible expenses and post-October losses. Reclassifications are made to the Funds' capital accounts to reflect income and gains available for distribution (or available capital loss carryforwards) under income tax regulations. For the year ended December 31, 2002, permanent items identified and reclassified among the components of net assets are as follows:
Undistributed (Overdistributed) Accumulated Net Investment Net Realized Paid-In Income (Loss) Gain (Loss) Capital ----------------- ------------ ------------ Columbia Common Stock Fund ............................... $ 4,837 $ 3,223 $ (8,060) Columbia Growth Fund ..................................... 334,512 (37,229,351) 36,894,839 Columbia International Stock Fund ........................ 447,057 (14,245,703) 13,798,646 Columbia Special Fund .................................... 5,332,818 (57,446,060) 52,113,242 Columbia Small Cap Fund .................................. 5,530,557 (21,591) (5,508,966) Columbia Real Estate Equity Fund ......................... 6,187,973 (2,272,645) (3,915,328) Columbia Technology Fund ................................. 122,568 -- (122,568) Columbia Strategic Value Fund ............................ 20,231 (3,088,281) 3,068,050 Columbia Balanced Fund ................................... 480,584 (359,839) (120,745) Columbia Short Term Bond Fund ............................ (223,160) (3,387,448) 3,610,608 Columbia Fixed Income Securities Fund .................... 356,986 (328,432) (28,554) Columbia National Municipal Bond Fund .................... 2,494 (2,091) (403) Columbia Oregon Municipal Bond Fund ...................... 54,037 (54,037) -- Columbia High Yield Fund ................................. 256,301 (256,301) --
Net investment income, net realized gains (losses) and net assets were not affected by these reclassifications. 142 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- The tax character of distributions paid during the year ended December 31, 2002 was as follows:
Tax-Exempt Ordinary Long-Term Tax Return Income Income Capital Gains of Capital ----------- ------------- ------------- ----------- Columbia Common Stock Fund ........................... $ -- $ 2,325,610 $ -- $ -- Columbia International Stock Fund .................... -- 102,850 -- 403,799 Columbia Real Estate Equity Fund ..................... -- 29,918,034 -- 3,915,328 Columbia Strategic Value Fund ........................ -- 2,143,571 71,885 -- Columbia Balanced Fund ............................... -- 21,206,395 -- -- Columbia Short Term Bond Fund ........................ -- 3,936,894 -- -- Columbia Fixed Income Securities Fund ................ -- 25,343,852 -- -- Columbia National Municipal Bond Fund ................ 599,363 2,439 64,967 -- Columbia Oregon Municipal Bond Fund .................. 22,352,069 200,224 4,822,914 -- Columbia High Yield Fund ............................. -- 30,342,904 -- -- Columbia Daily Income Company ........................ -- 14,142,055 -- --
The tax character of distributions paid during the year ended December 31, 2001 was as follows:
Tax-Exempt Ordinary Long-Term Tax Return Income Income Capital Gains of Capital ----------- ------------- ------------- ----------- Columbia Common Stock Fund ........................... $ -- $ 2,384,042 $ 568,973 $ -- Columbia Growth Fund ................................. -- -- 6,365,332 -- Columbia International Stock Fund .................... -- -- -- 131,448 Columbia Special Fund ................................ -- -- 36,110,869 -- Columbia Real Estate Equity Fund ..................... -- 21,221,990 -- 2,074,000 Columbia Strategic Value Fund ........................ -- 503,110 -- -- Columbia Balanced Fund ............................... -- 28,272,449 -- -- Columbia Short Term Bond Fund ........................ -- 2,396,760 107,979 -- Columbia Fixed Income Securities Fund ................ -- 25,535,189 -- -- Columbia National Municipal Bond Fund ................ 533,303 3,175 22,086 -- Columbia Oregon Municipal Bond Fund .................. 22,201,827 18,916 1,079,947 -- Columbia High Yield Fund ............................. -- 13,865,815 -- -- Columbia Daily Income Company ........................ -- 45,229,610 -- --
As of December 31, 2002, the components of distributable earnings on a tax basis were as follows:
Undistributed Undistributed Undistributed Unrealized Tax-Exempt Ordinary Long-Term Appreciation Income Income Capital Gains (Depreciation)* ------------- ------------- ------------- --------------- Columbia Common Stock Fund ........................... $ -- $ -- $ -- $ 198,225 Columbia Growth Fund ................................. -- -- -- (1,404,526) Columbia International Stock Fund .................... -- -- -- (5,040,672) Columbia Special Fund ................................ -- -- -- 18,584,065 Columbia Small Cap Fund .............................. -- -- -- 18,371,978 Columbia Real Estate Equity Fund ..................... -- -- -- 64,716,341 Columbia Technology Fund ............................. -- -- -- 170,418 Columbia Strategic Value Fund ........................ -- -- -- (9,203,454) Columbia Balanced Fund ............................... -- -- -- 13,077,621 Columbia Short Term Bond Fund ........................ -- 13,133 -- 6,803,738 Columbia Fixed Income Securities Fund ................ -- -- -- 23,074,068 Columbia National Municipal Bond Fund ................ 1,753 2,844 10,842 758,194
143 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- NOTE 3 -- FEDERAL TAX INFORMATION (CONT.)
Undistributed Undistributed Undistributed Unrealized Tax-Exempt Ordinary Long-Term Appreciation Income Income Capital Gains (Depreciation)* ------------- ------------- ------------- ------------- Columbia Oregon Municipal Bond Fund .................... $8,813 $17,517 $277,844 $24,625,714 Columbia High Yield Fund ............................... -- -- -- 7,967,012
* The difference between book-basis and tax-basis unrealized appreciation (depreciation), if applicable, is attributable primarily to the tax deferral of losses on wash sales. The following capital loss carryforwards are available to reduce taxable income arising from future net realized gains on investments, if any, to the extent permitted by the Internal Revenue Code:
Year of Expiration 2003 2004 2005 2006 2007 ------ -------- ---------- --------- ----------- Columbia Common Stock Fund ......... $ -- $ -- $ -- $ -- $ -- Columbia Growth Fund ............... -- -- -- -- 23,087,439 Columbia International Stock Fund ......... -- -- -- -- 7,390,519 Columbia Special Fund ............... -- -- -- -- 9,239,978 Columbia Small Cap Fund ............... -- -- -- -- -- Columbia Real Estate Equity Fund ........ -- -- -- -- -- Columbia Technology Fund ............... -- -- -- -- -- Columbia Strategic Value Fund ......... -- -- -- -- 1,431,991 Columbia Balanced Fund ............... -- -- -- -- -- Columbia Short Term Bond Fund .......... 9,409 114,406 1,642,976 517,428 -- Columbia Fixed Income Securities Fund .... -- -- -- -- 339,655 Columbia High Yield Fund ............... -- -- -- -- 1,036,180 Year of Expiration 2008 2009 2010 Total --------- ------------ ------------ ------------ Columbia Common Stock Fund ......... $ -- $ 52,039,637 $ 73,274,519 $125,314,156 Columbia Growth Fund ............... 7,477,479 162,540,209 201,393,752 394,498,879 Columbia International Stock Fund ......... 5,799,517 24,287,430 16,745,931 54,223,397 Columbia Special Fund ............... 30,472,022 123,971,781 95,645,403 259,329,184 Columbia Small Cap Fund ............... -- 117,057,825 101,480,033 218,537,858 Columbia Real Estate Equity Fund ........ 1,271,327 -- 14,545,453 15,816,780 Columbia Technology Fund ............... -- 4,393,873 4,569,408 8,963,281 Columbia Strategic Value Fund ......... 789,528 -- 18,244,149 20,465,668 Columbia Balanced Fund ............... -- 65,697,715 69,939,934 135,637,649 Columbia Short Term Bond Fund .......... 1,103,188 -- -- 3,387,407 Columbia Fixed Income Securities Fund .... 8,464,598 -- 2,709,651 11,513,904 Columbia High Yield Fund ............... 1,547,817 6,534,263 26,808,027 35,926,287
Of the capital loss carryforwards attributable to Columbia Growth Fund, $30,564,918 ($23,087,439 expiring 12/31/07 and $7,477,479 expiring 12/31/08) was obtained upon the Columbia Growth Fund's merger with Galaxy Large Cap Growth Fund (See Note 1). Of the capital loss carryforwards attributable to Columbia International Stock Fund, $9,124,064 ($7,196,259 expiring 12/31/07 and $1,927,805 expiring 12/31/08) and $4,725,563 ($194,260 expiring 12/31/07, $3,871,712 expiring 12/31/08 and $659,591 expiring 12/31/09) were obtained upon the Columbia International Stock Fund's mergers with LNIF and SRIF, respectively (See Note 1). Of the capital loss carryforwards attributable to Columbia Special Fund, $9,732,198 ($927,932 expiring 12/31/07, $7,427,424 expiring 12/31/08 and $1,376,842 expiring 12/31/09), $39,492,613 ($5,340,814 expiring 12/31/07, $22,105,946 expiring 12/31/08 and $12,045,853 expiring 12/31/09) and $4,415,697 ($2,971,232 expiring 12/31/07, $938,652 expiring 12/31/08 and $505,813 expiring 12/31/09) were obtained upon the Columbia Special Fund's mergers with LMCGF, SRCOF and GGIIF, respectively (See Note 1). Of the capital loss carryforwards attributable to Columbia Strategic Value Fund, $1,968,809 ($1,331,685 expiring 12/31/07 and $637,124 expiring 12/31/08) and $252,710 ($100,306 expiring 12/31/07 and $152,404 expiring 12/31/08) were obtained upon the Columbia Strategic Value Fund's mergers with LCEF and LCF, respectively (See Note 1). 144 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- Of the capital loss carryforwards attributable to Columbia Short Term Bond Fund, $3,387,407 ($9,409 expiring 12/31/03, $114,406 expiring 12/31/04, $1,642,976 expiring 12/31/05, $517,428 expiring 12/31/06 and $1,103,188 expiring 12/31/08) was obtained upon the Columbia Short Term Bond Fund's merger with Galaxy Short Term Bond Fund (See Note 1). Expired capital loss carryforwards, if any, are recorded as a reduction of paid-in capital. Under current tax rules, certain capital losses realized after October 31 may be deferred and treated as occurring on the first day of the following fiscal year. As of December 31, 2002, for federal income tax purposes, post-October losses attributable to security transactions were deferred to January 1, 2003 as follows: Post-October Losses ------------ Columbia Common Stock Fund ............................... $ 7,993,707 Columbia Growth Fund ..................................... 31,704,883 Columbia International Stock Fund ........................ 3,723,633 Columbia Special Fund .................................... 20,886,493 Columbia Small Cap Fund .................................. 16,691,680 Columbia Real Estate Equity Fund ......................... 7,214,156 Columbia Strategic Value Fund ............................ 7,631,709 Columbia Balanced Fund ................................... 7,074,215 Columbia Fixed Income Securities Fund .................... 315,665 Columbia High Yield Fund ................................. 1,786,440 NOTE 4 -- TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES Columbia Management Company ("CMC") is the investment advisor for each Fund. CMC is an indirect, wholly-owned subsidiary of FleetBoston Financial Corporation ("Fleet"), a publicly owned multi-bank holding company registered under the Bank Holding Company Act of 1956. Prior to November 1, 2002, Columbia Funds Management Company ("CFMC"), an affiliate of CMC, managed the Funds. Investment management fees were paid by each Fund to CMC or its predecessor CFMC. The fees are based on the following annual rates of average daily net assets:
Fees on Fees on Fees on Fees on Net Assets Net Assets Net Assets Net Assets First Next Next Exceeding $200 Million $300 Million $500 Million $1 Billion ------------ ------------ ------------ ---------- Columbia Common Stock Fund...................... 0.600% 0.600% 0.600% 0.600% Columbia Growth Fund............................ 0.750% 0.625% 0.500% 0.500% Columbia International Stock Fund............... 1.000% 1.000% 1.000% 1.000% Columbia Special Fund........................... 1.000% 1.000% 0.750% 0.750% Columbia Small Cap Fund......................... 1.000% 1.000% 1.000% 1.000% Columbia Real Estate Equity Fund................ 0.750% 0.750% 0.750% 0.750% Columbia Technology Fund........................ 1.000% 1.000% 1.000% 1.000% Columbia Strategic Value Fund................... 0.750% 0.750% 0.750% 0.750% Columbia Balanced Fund.......................... 0.500% 0.500% 0.500% 0.500% Columbia Short Term Bond Fund................... 0.500% 0.500% 0.500% 0.500% Columbia Fixed Income Securities Fund........... 0.500% 0.500% 0.500% 0.500% Columbia National Municipal Bond Fund........... 0.500% 0.500% 0.500% 0.500%
145 NOTE 4 -- TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES (CONT.)
Fees on Fees on Fees on Fees on Net Assets Net Assets Net Assets Net Assets First Next Next Exceeding $200 Million $300 Million $500 Million $1 Billion ------------ ------------ ------------ ---------- Columbia Oregon Municipal Bond Fund............. 0.500% 0.500% 0.500% 0.500% Columbia High Yield Fund........................ 0.600% 0.600% 0.600% 0.600% Columbia Daily Income Company................... 0.500% 0.500% 0.450% 0.400%
The transfer agent for the Funds is Liberty Fund Services, Inc. ("LFSI"), an indirect, wholly-owned subsidiary of Fleet. For all Funds' Class Z shares, with the exception of Columbia National Municipal Fund, LFSI is compensated based on a monthly fee equal to the higher of a per account fee or a flat fee of $1,500 per month. Columbia National Municipal Fund is not subject to the $1,500 flat fee. For Class A, B, D, G and T shares, each Fund pays LFSI a monthly fee that is the lower of: 1) the monthly fee described for Class Z shares in the preceding sentence, as applied to Class A, B, C, D, G and T shares, or 2) a fee based upon an annual rate of 0.06% of the average daily net assets attributable to Class A, B, D, G and T shares, plus a per transaction fee and a per account fee. In addition, LFSI receives reimbursement for certain out-of-pocket expenses. Prior to October 18, 2002, Columbia Trust Company ("CTC"), an affiliate of CMC and an indirect, wholly-owned subsidiary of Fleet, served as the Funds' transfer agent. Fees prior to October 18, 2002 were paid to CTC based on a per account fee. Effective July 1, 2002, Colonial Management Associates, Inc. ("CMA"), an affiliate of CMC, is responsible for providing pricing and bookkeeping services to the Funds under a Pricing, Bookkeeping and Fund Administration Agreement. Under a separate agreement (the "Outsourcing Agreement"), CMA has delegated certain of these functions to State Street Bank and Trust Company ("State Street"). CMA pays fees to State Street under the Outsourcing Agreement. Under its pricing and bookkeeping agreement with the Funds, CMA receives from each fund a monthly fee equal to 0.01% annually of each Fund's average daily net assets. The fee for a fund in any year shall not be less than $25,000 or exceed $150,000. Prior to July 1, 2002 certain direct accounting fees were paid to CTC. Liberty Funds Distributor, Inc. (the "Distributor"), an affiliate of the CMC, is the Funds' principal underwriter. For the year ended December 31, 2002, the Funds have been advised that the Distributor retained fees as follows:
Front-End Contingent Deferred Sales Charge Sales Charge ------------ ------------------------------ Class A Class B Class D Class G ------- ------- ------- ------- Columbia Common Stock Fund .............. $ 4 $ 250 $ -- $ -- Columbia Growth Fund .................... 27 -- -- 2,921 Columbia International Stock Fund ....... 156 2,725 34 -- Columbia Special Fund ................... 252 1,757 -- 59 Columbia Real Estate Equity Fund ........ 1,257 -- -- -- Columbia Technology Fund ................ -- -- -- -- Columbia Strategic Value Fund ........... 47 853 -- -- Columbia Balanced Fund .................. -- 250 -- -- Columbia Short Term Bond Fund ........... 6,688 718 92 -- Columbia Fixed Income Securities Fund ... 2,252 83 -- -- Columbia National Municipal Bond Fund ... 5 -- -- -- Columbia Oregon Municipal Bond Fund ..... 584 2,476 246 -- Columbia High Yield Fund ................ 10,152 1,194 2 --
146 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- The Funds have adopted a 12b-1 plan (the "Plan") which requires the payment of a monthly service and distribution fee to the Distributor at an annual fee rate as follows:
Distribution Fee Service Fee ------------------------------------------- ------------------------------------------- Class A (a) Class B Class D Class G Class A (a) Class B Class D Class G ----------- ------- ------- ------- ----------- ------- ------- ------- Columbia Common Stock Fund ....... 0.10% 0.75% 0.75% -- 0.25% 0.25% 0.25% -- Columbia Growth Fund ............. 0.10% 0.75% 0.75% 0.65%(b) 0.25% 0.25% 0.25% 0.50%(b) Columbia International Stock Fund. -- 0.75% 0.75% -- 0.25% 0.25% 0.25% -- Columbia Special Fund ............ 0.10% 0.75% 0.75% 0.65%(b) 0.25% 0.25% 0.25% 0.50%(b) Columbia Real Estate Equity Fund . 0.10% 0.75% 0.75% -- 0.25% 0.25% 0.25% -- Columbia Technology Fund ......... 0.10% 0.75% 0.75% -- 0.25% 0.25% 0.25% -- Columbia Strategic Value Fund .... -- 0.75% 0.75% -- 0.25% 0.25% 0.25% -- Columbia Balanced Fund ........... 0.10% 0.75% 0.75% -- 0.25% 0.25% 0.25% -- Columbia Short Term Bond Fund .... 0.10% 0.75% 0.75% 0.65%(c) 0.25% 0.25% 0.25% 0.50%(c) Columbia Fixed Income Securities Fund ................ 0.10% 0.75% 0.75% -- 0.25% 0.25% 0.25% -- Columbia National Municipal Bond Fund ...................... 0.10% 0.75% 0.75% -- 0.25% 0.25% 0.25% -- Columbia Oregon Municipal Bond Fund ...................... 0.10% 0.75% 0.75% -- 0.25% 0.25% 0.25% -- Columbia High Yield Fund ......... 0.10% 0.75% 0.75% -- 0.25% 0.25% 0.25% --
(a) The Fund's Board of Directors currently limits payments under the Plan for Class A shares to 0.25% annually. (b) Under the Plan, the Fund does not intend to pay more than a total of 0.95% annually for Class G shares. (c) Under the Plan, the Fund does not intend to pay more than a total of 0.80% annually for Class G shares. For the Columbia Short Term Bond Fund, the Distributor has voluntarily agreed to waive a portion of its Class D distribution fees so that these fees do not exceed 0.40% annually of Class D's average daily net assets. For the Columbia National Municipal Fund and Columbia Oregon Municipal Bond Fund, the Distributor has voluntarily agreed to waive a portion of its Class D distribution fees so that these fees do not exceed 0.65% annually of Class D's average daily net assets. For the Columbia Fixed Income Securities Fund and Columbia High Yield Fund, the Distributor has voluntarily agreed to waive a portion of its Class D distribution fees so that these fees do not exceed 0.85% annually of Class D's average daily net assets. The CDSC and the fees received from the Plan are used principally as repayment to the Distributor for amounts paid by the Distributor to dealers who sold such shares. The Columbia Special Fund and Columbia Short Term Bond Fund have adopted plans that permit them to pay for certain services provided to Class T shareholders by their financial advisor. The annual service fee may equal up to 0.50% for Class T shares, but will not exceed each Fund's net investment income attributable to Class T shares. The Columbia Special Fund does not intend to pay more than 0.30% annually for Class T shareholder service fees. The Columbia Short Term Bond Fund does not intend to pay more than 0.15% annually for Class T shareholder service fees. For the year ended December 31, 2002, and until further notice, CMC has voluntarily agreed to reimburse expenses (excluding any class specific 12b-1 fees, brokerage commissions, interest, taxes and extraordinary expenses, if any) in excess of 1.65% for the Columbia Technology Fund. The arrangement may be modified or terminated by CMC at any time. For the three years commencing November 1, 2000 and ending October 31, 2003, CMC has contractually agreed to reimburse expenses (excluding any class specific 12b-1 fees and shareholder service fees, brokerage commissions, interest, taxes and extraordinary expenses, if any) in excess of 0.75% for the Columbia Short Term Bond Fund. In addition, through May 24, 2004, CMC or its 147 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- NOTE 4 -- TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES (CONT.) affiliate has voluntarily agreed to reimburse class specific transfer agency fees to the extent necessary to prevent the total annual operating expense from exceeding 1.64%, 0.98% and 0.66% for Class G, Class T, and Class Z shares, respectively, as a result of expenses attributable to the acquisition of the Galaxy Short-Term Bond Fund by the Columbia Short Term Bond Fund. For the year ended December 31, 2002, CMC contractually agreed to reimburse expenses (excluding any class specific 12b-1 fees, brokerage commissions, interest, taxes and extraordinary expenses, if any) in excess of 0.65% for the Columbia National Municipal Bond Fund. This arrangement has been voluntarily extended and may be modified or terminated by CMC at any time. For the Columbia International Stock Fund and Columbia Strategic Value Fund, CMC has voluntarily agreed to waive a portion of the Class B, Class D and Class Z transfer agent fees as follows:
Class B Class D Class Z ------- ------- ------- Columbia International Stock Fund ................................ 0.11% 0.75% 0.12% Columbia Strategic Value Fund .................................... 0.23% 0.15% 0.03%
For the Columbia Special Fund, CMC has voluntarily agreed to waive a portion of the Class A, Class B, Class D and Class Z transfer agent fees as follows:
Class A Class B Class D Class Z ------- ------- ------- ------- Columbia Special Fund .......................... 0.01% 0.12% 0.09% 0.05%
For the Columbia Short Term Bond Fund, CMC or its affiliate has voluntarily agreed to reimburse a portion of the Class G transfer agent fees as follows:
Class G ------- Columbia Short Term Bond Fund ..................................................................................... 0.01%
CMC has agreed to keep these arrangements in place through May 2004. Thereafter, these arrangements may be modified or terminated by CMC at any time. The Funds have an agreement with their custodian bank under which custody fees are reduced by balance credits. The Funds could have invested a portion of the assets utilized in connection with the expense offset arrangement in an income-producing asset if they had not entered into such an agreement. The amounts of custody credits for the year ended December 31, 2002 are as follows: Custody Credits ------- Columbia Common Stock Fund .................................. $ 8,314 Columbia Growth Fund ........................................ 15,433 Columbia International Stock Fund ........................... 4,016 Columbia Special Fund ....................................... 8,834 Columbia Small Cap Fund ..................................... 5,412 Columbia Real Estate Equity Fund ............................ 4,979 Columbia Technology Fund .................................... 578 Columbia Strategic Value Fund ............................... 2,643 Columbia Balanced Fund ...................................... 10,542 Columbia Short Term Bond Fund ............................... 3,853 Columbia Fixed Income Securities Fund ....................... 4,380 Columbia National Municipal Bond Fund ....................... 1,370 Columbia Oregon Municipal Bond Fund ......................... 8,814 Columbia High Yield Fund .................................... 5,818 Columbia Daily Income Company ............................... 37,293 Directors' fees and expenses were paid directly by each Fund to directors having no affiliation with the Funds other than in their capacity as directors. Other officers and directors receive no compensation from the Funds. 148 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- NOTE 5 -- CAPITAL STOCK ACTIVITY Columbia Funds For the Year Ended December 31, 2002
Real Common International Small Estate Stock Growth Stock Special Cap Equity Fund (a) Fund (b) Fund (a) Fund (c) Fund Fund (a) ----------- ----------- ----------- ----------- ---------- ----------- SHARES: Class A: Shares sold .............................. 2,138 6,415 103,222 15,672 -- 50,286 Issued in connection with merger ......... -- 142,906 2,026,408 68,335 -- -- Shares issued for distributions reinvested 2 -- -- -- -- 614 Shares redeemed .......................... -- (1,651) (120,925) (4,112) -- (41) ----------- ----------- ----------- ----------- ---------- ----------- Net increase .......................... 2,140 147,670 2,008,705 79,895 -- 50,859 =========== =========== =========== =========== ========== =========== Class B: Shares sold .............................. 7,642 5,492 49,073 7,078 -- 59,855 Shares issued in connection with merger .. -- -- 1,117,525 230,587 -- -- Shares issued for distributions reinvested 25 -- -- -- -- 426 Shares redeemed .......................... (328) -- (76,334) (8,494) -- (27) ----------- ----------- ----------- ----------- ---------- ----------- Net increase .......................... 7,339 5,492 1,090,264 229,171 -- 60,254 =========== =========== =========== =========== ========== =========== Class D: Shares sold .............................. 2,972 4,966 16,230 11,403 -- 20,247 Shares issued in connection with merger .. -- -- 56,019 18,373 -- -- Shares issued for distributions reinvested 7 -- -- -- -- 234 Shares redeemed .......................... (968) -- (18,196) (431) -- -- ----------- ----------- ----------- ----------- ---------- ----------- Net increase .......................... 2,011 4,966 54,053 29,345 -- 20,481 =========== =========== =========== =========== ========== =========== Class G: Shares sold .............................. -- 780 -- 222 -- -- Shares issued in connection with merger .. -- 668,443 -- 51,696 -- -- Shares redeemed .......................... -- (11,143) -- (913) -- -- ----------- ----------- ----------- ----------- ---------- ----------- Net increase .......................... -- 658,080 -- 51,005 -- -- =========== =========== =========== =========== ========== =========== Class T: Shares sold .............................. -- -- -- 1,181 -- -- Shares issued in connection with merger .. -- -- -- 1,766,763 -- -- Shares redeemed .......................... -- -- -- (12,506) -- -- ----------- ----------- ----------- ----------- ---------- ----------- Net increase .......................... -- -- -- 1,755,438 -- -- =========== =========== =========== =========== ========== =========== Class Z: Shares sold .............................. 7,624,871 6,673,385 14,151,430 23,256,300 19,739,178 33,091,005 Shares issued in connection with merger .. -- 4,131,819 1,426,094 16,875,517 -- -- Shares issued for distributions reinvested 153,392 100 48,107 -- -- 1,648,657 Shares redeemed .......................... (13,944,732) (14,167,826) (12,634,316) (25,658,966) (17,331,161) (25,701,989) ----------- ----------- ----------- ----------- ---------- ----------- Net increase (decrease) ............... (6,166,469) (3,362,522) 2,991,315 14,472,851 2,408,017 9,037,673 =========== =========== =========== =========== ========== ===========
149 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- NOTE 5 -- CAPITAL STOCK ACTIVITY (CONT.) Columbia Funds For the Year Ended December 31, 2002
Common International Stock Growth Stock Fund (a) Fund (b) Fund (a) ------------- ------------- ------------- AMOUNTS: Class A: Sales ..................................... $ 31,961 $ 135,724 $ 1,040,525 Proceeds received in connection with merger -- 3,133,045 20,243,813 Distributions reinvested .................. 24 -- -- Redemptions ............................... -- (35,026) (1,215,758) ------------- ------------- ------------- Net increase ........................... $ 31,985 $ 3,233,743 $ 20,068,580 ============= ============= ============= Class B: Sales ..................................... $ 117,918 $ 119,511 $ 492,261 Proceeds received in connection with merger -- -- 11,164,070 Distributions reinvested .................. 365 -- -- Redemptions ............................... (5,120) -- (768,135) ------------- ------------- ------------- Net increase ........................... $ 113,163 $ 119,511 $ 10,888,196 ============= ============= ============= Class D: Sales ..................................... $ 46,518 $ 105,516 $ 162,310 Proceeds received in connection with merger -- -- 559,632 Distributions reinvested .................. 105 -- -- Redemptions ............................... (14,682) -- (181,537) ------------- ------------- ------------- Net increase ........................... $ 31,941 $ 105,516 $ 540,405 ============= ============= ============= Class G: Sales ..................................... -- $ 16,449 -- Proceeds received in connection with merger -- 14,636,657 -- Redemptions ............................... -- (235,662) -- ------------- ------------- ------------- Net increase ........................... -- $ 14,417,444 -- ============= ============= ============= Class T: Sales ..................................... -- -- -- Proceeds received in connection with merger -- -- -- Redemptions ............................... -- -- -- ------------- ------------- ------------- Net increase ........................... -- -- -- ============= ============= ============= Class Z: Sales ..................................... $ 129,705,574* $ 165,334,435 $ 150,103,257 Proceeds received in connection with merger -- 90,545,496 14,246,687 Distributions reinvested .................. 2,267,130 2,235 478,672 Redemptions ............................... (232,525,563) (346,428,134) (134,815,113) ------------- ------------- ------------- Net increase (decrease) ................ $(100,552,859) $ (90,545,968) $ 30,013,503 ============= ============= ============= Total Capital Share Transactions ....... $(100,375,770) $ (72,669,754) $ 61,510,684 ============= ============= ============= Real Small Estate Special Cap Equity Fund (c) Fund Fund (a) ------------- -------------- ------------- AMOUNTS: Class A: Sales ..................................... $ 237,394 -- $ 889,637 Proceeds received in connection with merger 1,049,181 -- -- Distributions reinvested .................. -- -- 10,830 Redemptions ............................... (61,507) -- (701) ------------- -------------- ------------- Net increase ........................... $ 1,225,068 -- $ 899,766 ============= ============== ============= Class B: Sales ..................................... $ 106,916 -- $ 1,057,426 Proceeds received in connection with merger 3,540,022 -- -- Distributions reinvested .................. -- -- 7,526 Redemptions ............................... (127,352) -- (486) ------------- -------------- ------------- Net increase ........................... $ 3,519,586 -- $ 1,064,466 ============= ============== ============= Class D: Sales ..................................... $ 172,855 -- $ 355,423 Proceeds received in connection with merger 282,040 -- -- Distributions reinvested .................. -- -- 4,139 Redemptions ............................... (6,374) -- -- ------------- -------------- ------------- Net increase ........................... $ 448,521 -- $ 359,562 ============= ============== ============= Class G: Sales ..................................... $ 3,363 -- -- Proceeds received in connection with merger 794,054 -- -- Redemptions ............................... (13,602) -- -- ------------- -------------- ------------- Net increase ........................... $ 783,815 -- -- ============= ============== ============= Class T: Sales ..................................... $ 17,735 -- -- Proceeds received in connection with merger 27,163,275 -- -- Redemptions ............................... (187,071) -- -- ------------- -------------- ------------- Net increase ........................... $ 26,993,939 -- -- ============= ============== ============= Class Z: Sales ..................................... $ 377,870,023 $ 396,004,404 $ 607,721,107 Proceeds received in connection with merger 259,343,536 -- -- Distributions reinvested .................. -- -- 30,201,439 Redemptions ............................... (417,250,145) (327,998,840) (466,134,043) ------------- -------------- ------------- Net increase (decrease) ................ $ 219,963,414 $ 68,005,564 $ 171,788,503 ============= ============== ============= Total Capital Share Transactions ....... $ 252,934,343 $ 68,005,564 $ 174,112,297 ============= ============== =============
* Includes $4,174 of securities received in an in-kind transfer. 150 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- Columbia Funds For the Year Ended December 31, 2002
Short Fixed National Strategic Term Income Municipal Technology Value Balanced Bond Securities Bond Fund (a) Fund (a) Fund (a) Fund (c) Fund (a) Fund (a) ---------- ----------- ----------- ----------- ----------- ---------- SHARES: Class A: Shares sold .............................. 266 16,466 8,288 648,705 69,868 6,496 Shares issued in connection with merger .. -- 4,196,653 -- -- -- -- Shares issued for distributions reinvested -- -- 38 712 19 41 Shares redeemed .......................... -- (135,115) (1) (10,279) -- -- ---------- ----------- ----------- ----------- ----------- ---------- Net increase .......................... 266 4,078,004 8,325 639,138 69,887 6,537 ========== =========== =========== =========== =========== ========== Class B: Shares sold .............................. 1,777 23,766 34,842 724,659 108,490 21,761 Shares issued in connection with merger .. -- 163,845 -- -- -- -- Shares issued for distributions reinvested -- -- 118 571 148 89 Shares redeemed .......................... -- (8,208) (285) (3,436) (257) (14,822) ---------- ----------- ----------- ----------- ----------- ---------- Net increase .......................... 1,777 179,403 34,675 721,794 108,381 7,028 ========== =========== =========== =========== =========== ========== Class D: Shares sold .............................. 263 1,170 25,391 630,014 31,506 8,119 Shares issued in connection with merger .. -- 27,645 -- -- -- -- Shares issued for distributions reinvested -- -- 100 1,027 38 32 Shares redeemed .......................... -- (1,702) -- (28,832) -- (3,292) ---------- ----------- ----------- ----------- ----------- ---------- Net increase .......................... 263 27,113 25,491 602,209 31,544 4,859 ========== =========== =========== =========== =========== ========== Class G: Shares sold .............................. -- -- -- 8,127 -- -- Shares issued in connection with merger .. -- -- -- 208,508 -- -- Shares issued for distributions reinvested -- -- -- 235 -- -- Shares redeemed .......................... -- -- -- (730) -- -- ---------- ----------- ----------- ----------- ----------- ---------- Net increase .......................... -- -- -- 216,140 -- -- ========== =========== =========== =========== =========== ========== Class T: Shares sold .............................. -- -- -- 63,115 -- -- Shares issued in connection with merger .. -- -- -- 3,594,178 -- -- Shares issued for distributions reinvested -- -- -- 5,002 -- -- Shares redeemed .......................... -- -- -- (104,000) -- -- ---------- ----------- ----------- ----------- ----------- ---------- Net increase .......................... -- -- -- 3,558,295 -- -- ========== =========== =========== =========== =========== ========== Class Z: Shares sold .............................. 2,055,133 24,026,235 6,801,092 16,131,131 22,424,154 1,109,593 Shares issued in connection with merger .. -- 180,824 -- 22,121,411 -- -- Shares issued for distributions reinvested -- 171,442 1,137,024 426,395 1,948,592 64,411 Shares redeemed .......................... (1,621,025) (18,027,370) (17,367,916) (9,419,905) (19,120,878) (981,956) ---------- ----------- ----------- ----------- ----------- ---------- Net increase (decrease) ............... 434,108 6,351,131 (9,429,800) 29,259,032 5,251,868 192,048 ========== =========== =========== =========== =========== ==========
151 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- NOTE 5 -- CAPITAL STOCK ACTIVITY (CONT.) Columbia Funds For the Year Ended December 31, 2002
Strategic Technology Value Balanced Fund (a) Fund (a) Fund (a) ------------ ------------- ------------- AMOUNTS: Class A: Sales ..................................... $ 1,013 $ 220,586 $ 147,819 Proceeds received in connection with merger -- 54,514,520 -- Distributions reinvested .................. -- -- 668 Redemptions ............................... -- (1,789,207) (20) ------------ ------------- ------------- Net increase ........................... $ 1,013 $ 52,945,899 $ 148,467 ============ ============= ============= Class B: Sales ..................................... $ 6,709 $ 316,907 $ 622,186 Proceeds received in connection with merger -- 2,128,341 -- Distributions reinvested .................. -- -- 2,064 Redemptions ............................... -- (108,351) (5,115) ------------ ------------- ------------- Net increase ........................... $ 6,709 $ 2,336,897 $ 619,135 ============ ============= ============= Class D: Sales ..................................... $ 1,000 $ 15,708 $ 456,181 Proceeds received in connection with merger -- 359,105 -- Distributions reinvested .................. -- -- 1,738 Redemptions ............................... -- (22,407) -- ------------ ------------- ------------- Net increase ........................... $ 1,000 $ 352,406 $ 457,919 ============ ============= ============= Class G: Sales ..................................... -- -- -- Proceeds received in connection with merger -- -- -- Distributions reinvested .................. -- -- -- Redemptions ............................... -- -- -- ------------ ------------- ------------- Net increase ........................... -- -- -- ============ ============= ============= Class T: Sales ..................................... -- -- -- Proceeds received in connection with merger -- -- -- Distributions reinvested .................. -- -- -- Redemptions ............................... -- -- -- ------------ ------------- ------------- Net increase ........................... -- -- -- ============ ============= ============= Class Z: Sales ..................................... $ 10,220,887 $ 352,586,497 $ 129,567,321 Proceeds received in connection with merger -- 2,348,913 -- Distributions reinvested .................. -- 2,187,604 20,929,510 Redemptions ............................... (7,491,197) (244,650,805) (325,499,332) ------------ ------------- ------------- Net increase (decrease) ................ $ 2,729,690 $ 112,472,209 $(175,002,501) ============ ============= ============= Total Capital Share Transactions ....... $ 2,738,412 $ 168,107,411 $(173,776,980) ============ ============= ============= Short Fixed National Term Income Municipal Bond Securities Bond Fund (c) Fund (a) Fund (a) ------------- ------------- ------------ AMOUNTS: Class A: Sales ..................................... $ 5,597,578 $ 939,670 $ 66,135 Proceeds received in connection with merger -- -- -- Distributions reinvested .................. 6,168 252 425 Redemptions ............................... (88,636) -- -- ------------- ------------- ------------ Net increase ........................... $ 5,515,110 $ 939,922 $ 66,560 ============= ============= ============ Class B: Sales ..................................... $ 6,252,006 $ 1,456,255 $ 222,588 Proceeds received in connection with merger -- -- -- Distributions reinvested .................. 4,943 1,998 906 Redemptions ............................... (29,668) (3,454) (150,595) ------------- ------------- ------------ Net increase ........................... $ 6,227,281 $ 1,454,799 $ 72,899 ============= ============= ============ Class D: Sales ..................................... $ 5,435,948 $ 421,439 $ 83,038 Proceeds received in connection with merger -- -- -- Distributions reinvested .................. 8,883 510 322 Redemptions ............................... (248,791) -- (33,443) ------------- ------------- ------------ Net increase ........................... $ 5,196,040 $ 421,949 $ 49,917 ============= ============= ============ Class G: Sales ..................................... $ 69,466 -- -- Proceeds received in connection with merger 1,797,110 -- -- Distributions reinvested .................. 2,041 -- -- Redemptions ............................... (6,301) -- -- ------------- ------------- ------------ Net increase ........................... $ 1,862,316 -- -- ============= ============= ============ Class T: Sales ..................................... $ 544,886 -- -- Proceeds received in connection with merger 30,982,225 -- -- Distributions reinvested .................. 43,369 -- -- Redemptions ............................... (898,480) -- -- ------------- ------------- ------------ Net increase ........................... $ 30,672,000 -- -- ============= ============= ============ Class Z: Sales ..................................... $ 138,763,864 $ 299,097,456 $ 11,268,258 Proceeds received in connection with merger 190,685,846 -- -- Distributions reinvested .................. 3,668,146 25,971,318 649,959 Redemptions ............................... (80,968,926) (254,637,100) (9,873,648) ------------- ------------- ------------ Net increase (decrease) ................ $ 252,148,930 $ 70,431,674 $ 2,044,569 ============= ============= ============ Total Capital Share Transactions ....... $ 301,621,677 $ 73,248,344 $ 2,233,945 ============= ============= ============
152 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- Columbia Funds For the Year Ended December 31, 2002
Oregon Municipal High Daily Bond Yield Income Fund (a) Fund (a) Company ----------- ----------- -------------- SHARES: Class A: Shares sold ................................................... 37,901 4,382,301 -- Shares issued for distributions reinvested .................... 236 10,597 -- Shares redeemed ............................................... -- (329,642) -- ----------- ----------- -------------- Net increase ............................................... 38,137 4,063,256 -- =========== =========== ============== Class B: Shares sold ................................................... 33,682 2,007,189 -- Shares issued for distributions reinvested .................... 170 3,910 -- Shares redeemed ............................................... (3,990) (14,669) -- ----------- ----------- -------------- Net increase ............................................... 29,862 1,996,430 -- =========== =========== ============== Class D: Shares sold ................................................... 37,686 2,151,932 -- Shares issued for distributions reinvested .................... 109 4,089 -- Shares redeemed ............................................... (1,979) (154) -- ----------- ----------- -------------- Net increase ............................................... 35,816 2,155,867 -- =========== =========== ============== Class Z: Shares sold ................................................... 13,500,076 89,490,322 1,214,530,352 Shares issued for distributions reinvested .................... 1,896,736 3,386,949 14,408,323 Shares redeemed ............................................... (15,383,205) (35,810,741) (1,346,398,974) ----------- ----------- -------------- Net increase (decrease) .................................... 13,607 57,066,530 (117,460,299) =========== =========== ==============
153 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- NOTE 5 -- CAPITAL STOCK ACTIVITY (CONT.) Columbia Funds For the Year Ended December 31, 2002
Oregon Municipal High Daily Bond Yield Income Fund (a) Fund (a) Company ------------- ------------- --------------- AMOUNTS: Class A: Sales ................................................. $ 471,456 $ 36,558,214 -- Distributions reinvested .............................. 2,929 88,687 -- Redemptions ........................................... -- (2,758,792) -- ------------- ------------- --------------- Net increase ....................................... $ 474,385 $ 33,888,109 -- ============= ============= =============== Class B: Sales ................................................. $ 419,900 $ 16,716,021 -- Distributions reinvested .............................. 2,114 32,718 -- Redemptions ........................................... (49,521) (122,617) -- ------------- ------------- --------------- Net increase ....................................... $ 372,493 $ 16,626,122 -- ============= ============= =============== Class D: Sales ................................................. $ 472,508 $ 17,940,183 -- Distributions reinvested .............................. 1,356 34,217 -- Redemptions ........................................... (24,640) (1,285) -- ------------- ------------- --------------- Net increase ....................................... $ 449,224 $ 17,973,115 -- ============= ============= =============== Class Z: Sales ................................................. $ 167,348,905 $ 756,219,396 $ 1,214,530,352 Distributions reinvested .............................. 23,528,226 28,634,236 14,408,323 Redemptions ........................................... (190,394,095) (301,863,222) (1,346,398,974) ------------- ------------- --------------- Net increase (decrease) ............................ $ 483,036 $ 482,990,410 $ (117,460,299) ============= ============= =============== Total Capital Share Transactions ................... $ 1,779,138 $ 551,477,756 $ (117,460,299) ============= ============= ===============
(a) Effective November 1, 2002, the Fund began offering four classes of shares: Class A, Class B, Class D and Class Z shares. Prior to November 1, 2002, the Fund was single class, which was subsequently named Class Z shares. (b) Effective November 1, 2002, the Fund began offering five classes of shares: Class A, Class B, Class D, Class G and Class Z shares. Prior to November 1, 2002, the Fund was single class, which was subsequently named Class Z shares. (c) Effective November 1, 2002, the Fund began offering six classes of shares: Class A, Class B, Class D, Class G, Class T and Class Z shares. Prior to November 1, 2002, the Fund was single class, which was subsequently named Class Z shares. 154 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- Columbia Funds For the Year Ended December 31, 2001
Common International Stock Growth Stock Fund Fund Fund ------------- ------------- ------------- SHARES: Class Z: Shares sold ............................... 10,491,254 6,698,004 10,569,626 Shares issued for distributions reinvested 145,205 191,120 10,692 Shares redeemed ........................... (13,300,679) (12,489,763) (11,176,755) ------------- ------------- ------------- Net increase (decrease) ................ (2,664,220) (5,600,639) (596,437) ============= ============= ============= AMOUNTS: Class Z: Sales ..................................... $ 223,544,221* $ 224,936,719 $ 137,760,985 Distributions reinvested .................. 2,904,776 6,121,573 128,621 Redemptions ............................... (281,981,291) (422,010,636) (145,054,766) ------------- ------------- ------------- Net increase (decrease) ................ $ (55,532,294) $(190,952,344) $ (7,165,160) ============= ============= ============= Real Small Estate Special Cap Equity Fund Fund Fund ------------- ------------- ------------- SHARES: Class Z: Shares sold ............................... 10,827,578 23,700,865 19,257,087 Shares issued for distributions reinvested 1,812,540 -- 1,287,767 Shares redeemed ........................... (14,683,575) (15,927,385) (10,494,908) ------------- ------------- ------------- Net increase (decrease) ................ (2,043,457) 7,773,480 10,049,946 ============= ============= ============= AMOUNTS: Class Z: Sales ..................................... $ 233,729,747 $ 523,950,512 $ 342,012,407 Distributions reinvested .................. 35,253,904 -- 22,872,415 Redemptions ............................... (307,848,091) (348,625,888) (185,458,069) ------------- ------------- ------------- Net increase (decrease) ................ $ (38,864,440) $ 175,324,624 $ 179,426,753 ============= ============= ============= Strategic Technology Value Balanced Fund Fund Fund ------------ ------------- ------------- SHARES: Class Z: Shares sold ............................... 2,782,881 13,572,048 10,632,218 Shares issued for distributions reinvested -- 34,400 1,349,053 Shares redeemed ........................... (1,591,291) (4,847,656) (13,467,113) ------------ ------------- ------------- Net increase (decrease) ................ 1,191,590 8,758,792 (1,485,842) ============ ============= ============= AMOUNTS: Class Z: Sales ..................................... $ 18,876,487 $ 178,940,298 $ 229,671,103 Distributions reinvested .................. -- 499,485 27,875,444 Redemptions ............................... (9,287,489) (63,849,817) (287,224,069) ------------ ------------- ------------- Net incease (decrease) ................. $ 9,588,998 $ 115,589,966 $ (29,677,522) ============ ============= ============= Short Fixed National Term Income Municipal Bond Securities Bond Fund Fund Fund ------------ ------------- ----------- SHARES: Class Z: Shares sold ............................... 6,668,086 18,021,813 647,652 Shares issued for distributions reinvested 276,496 1,807,564 51,314 Shares redeemed ........................... (3,873,523) (13,794,317) (399,171) ------------ ------------- ----------- Net increase (decrease) ................ 3,071,059 6,035,060 299,795 ============ ============= =========== AMOUNTS: Class Z: Sales ..................................... $ 57,224,022 $ 237,931,931 $ 6,424,664 Distributions reinvested .................. 2,358,854 23,905,520 507,903 Redemptions ............................... (33,118,729) (181,939,632) (3,955,073) ------------ ------------- ----------- Net incease (decrease) ................. $ 26,464,147 $ 79,897,819 $ 2,977,494 ============ ============= ===========
* Includes $17,070 of securities received in an in-kind transfer. 155 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- NOTE 5 -- CAPITAL STOCK ACTIVITY (CONT.) Columbia Funds For the Year Ended December 31, 2001
Oregon Municipal High Daily Bond Yield Income Fund Fund Company ------------- ------------- --------------- SHARES: Class Z: Shares sold .............................................. 12,007,422 34,217,948 1,507,707,483 Shares issued for distributions reinvested ............... 1,490,891 1,451,820 45,211,017 Shares redeemed .......................................... (8,798,807) (19,588,487) (1,497,533,872) ------------- ------------- --------------- Net increase .......................................... 4,699,506 16,081,281 55,384,628 ============= ============= =============== AMOUNTS: Class Z: Sales .................................................... $ 147,270,468 $ 308,626,705 $ 1,507,707,483 Distributions reinvested ................................. 18,269,042 13,033,592 45,211,017 Redemptions .............................................. (107,912,289) (175,676,728) (1,497,533,872) ------------- ------------- --------------- Net increase .......................................... $ 57,627,221 $ 145,983,569 $ 55,384,628 ============= ============= ===============
156 REPORT OF INDEPENDENT ACCOUNTANTS - -------------------------------------------------------------------------------- To the Board of Directors and Shareholders of: Columbia Common Stock Fund, Inc. Columbia Growth Fund, Inc. Columbia International Stock Fund, Inc. Columbia Special Fund, Inc. Columbia Small Cap Fund, Inc. Columbia Real Estate Equity Fund, Inc. Columbia Technology Fund, Inc. Columbia Strategic Value Fund, Inc. Columbia Balanced Fund, Inc. Columbia Short Term Bond Fund, Inc. Columbia Fixed Income Securities Fund, Inc. Columbia National Municipal Bond Fund, Inc. Columbia Oregon Municipal Bond Fund, Inc. Columbia High Yield Fund, Inc. Columbia Daily Income Company In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of each of the funds listed above comprising the Columbia Funds (collectively, the "Funds") at December 31, 2002, and the results of each of their operations, the changes in each of their net assets, and their financial highlights for the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as financial statements) are the responsibility of the Funds' management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with auditing standards generally accepted in the United States of America, which require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2002, by correspondence with the custodian and brokers, provide a reasonable basis for our opinion. PricewaterhouseCoopers LLP Portland, Oregon February 19, 2003 157 DIRECTORS AND OFFICERS - -------------------------------------------------------------------------------- The Directors serve terms of indefinite duration. The names, addresses and ages of the Directors and officers of each of the Columbia Funds, the term of office and length of time served, their principal occupations during at least the past five years, the number of portfolios in fund complex overseen by each Director, and other directorships they hold are shown below. Each officer listed below serves as an officer of each of the Columbia Funds. There is no family relationship between any of the directors listed above. The Statement of Additional Information (SAI) contains additional information about the Directors and is available without charge upon request by calling the fund's distributor at 800-345-6611.
Number of Portfolios in Fund Term of Office Principal Complex Other Position(s) and Occupation(s) Overseen by Directorships Held With Length of Time During Past 5 Director/ Held by Name, Address and Age Funds Served** Years*** Trustee**** Director - ------------------------------------------------------------------------------------------------------------------------------------ J. Jerry Inskeep, Jr. (1)* Chairman and Served for 37 Years Chairman of CMC Fund Trust 35 None 1300 S.W. Sixth Avenue Director and Columbia Funds Portland, OR 97201 (71 years old) J. Kevin Connaughton* Chief Financial Served for one month Treasurer of Liberty Funds and 245 Summer Street Officer Liberty All-Star Funds, Stein Roe Boston, MA 02110 Funds and Galaxy Funds, Senior (38 years old) Vice President of Liberty Funds Group LLC. Prior to his current positions, Mr. Connaughton was Controller of Liberty Funds, Liberty All-Star Funds and Stein Roe Funds; Vice President of Liberty Funds Group LLC and Colonial Management Associates, Inc.; Senior Tax Manager, Coopers & Lybrand LLP. Jeff B. Curtis* President and Served for 3 Years Executive Vice President and 1300 S.W. Sixth Avenue Assistant Chief Operating Officer-West Portland, OR 97201 Secretary Coast of Columbia Management Co. (49 years old) (the "Adviser"). Prior to his current positions, Mr. Curtis held positions of President, Senior Vice President and, general counsel of the Adviser. Kathleen M. Griffin* Vice President Served for 3 Years Vice President of Columbia 1300 S.W. Sixth Avenue Financial Center Incorporated Portland, OR 97201 ("CFCI") (43 years old) Jeffrey L. Lunzer* Vice President Served for 3 Years Vice President of the Adviser. 1300 S.W. Sixth Avenue Prior to his current positions Mr. Portland, OR 97201 Lunzer was the Controller for the (42 years old) Funds. Before joining the Funds in 1998, Mr. Lunzer was Treasurer and Fund Officer of WM Group of Funds, a mutual fund company. Joseph R. Palombo* Vice President Served for one month Chief Operating Officer and 245 Sumner Street Director of the Adviser, Director Boston, MA 02110 of CFCI (Columbia Financial Center, (50 years old) Inc.); Vice President of Stein Roe Services, Inc.; Director of Colonial Advisory Services, Inc.; Director and Executive Vice President of Colonial Management Associated, Inc.; Director of Liberty Financial Advisor; Director of Alpha Trade.
- ---------- (1) Mr. Inskeep is deemed to be an interested director because he is affiliated with the Adviser. 158 DIRECTORS AND OFFICERS - --------------------------------------------------------------------------------
Number of Portfolios in Fund Term of Office Principal Complex Other Position(s) and Occupation(s) Overseen by Directorships Held With Length of Time During Past 5 Director/ Held by Name, Address and Age Funds Served** Years*** Trustee**** Director - ------------------------------------------------------------------------------------------------------------------------------------ Mark A. Wentzien* Secretary Served for 3 Years Vice President of the Adviser. 1300 S.W. Sixth Avenue Prior to his current Portland, OR 97201 positions, Mr. Wentzien was (42 years old) Associate Counsel of the Adviser. DISINTERESTED DIRECTORS - ------------------------------------------------------------------------------------------------------------------------------------ James C. George Director Served for 9 Years Investment Consultant 35 None 1001 S.W. 5th Avenue Suite 1100 Portland, OR 97204 (70 years old) Patrick J. Simpson Director Served for 3 Years Lawyer, Perkins Coie LLP 35 None 1211 S.W. 5th Avenue Suite 1500 Portland, OR 97204 (58 years old) Richard L. Woolworth Director Served for 12 Years Chairman/CEO, 35 The Regence Group, 100 S.W. Market St. #1500 The Regence Group Regence BlueCross Portland, OR 97207 BlueShield of (61 years old) Oregon; NW Natural, a natural gas service provid Charles R. Nelson Director Served for six months Van Voorhis Professor, 15***** None Department of Economics Department of Economics, University of Washington University of Washington; Seattle, WA 98195 consultant on economic and (60 years old) statistical matters
- ---------------- * Interested person as defined by the 1940 Act. ** Each director serves for an indefinite term in accordance with the current Bylaws of each Fund until the date a director resigns, retires or is removed in accordance with the Bylaws of the Fund. *** All of the officers of the Funds are employees and officers of the Adviser and/or its affiliates. Only principal occupations are listed. **** Each director is a director of the 15 Columbia Funds set forth in this annual report. Mr. Nelson was elected as a director in July 2002. Each director except Mr. Nelson, are trustees of twenty portfolios of CMC Fund Trust, an open end management investment company also advised by the Adviser. Mr. Nelson was appointed as a trustee of the CMC Fund Trust portfolios on January 27, 2003. ***** Mr. Nelson serves as an independent trustee of the funds in the Liberty Funds Complex, which are advised and distributed by affiliates of the Adviser, consisting of 118 funds. 159 UNAUDITED INFORMATION - -------------------------------------------------------------------------------- Federal Income Tax Information Columbia Common Stock Fund 100.00% of the ordinary income distributed by the Fund, for the year ended December 31, 2002, qualifies for the corporate dividends received deduction. Columbia Strategic Value Fund 100.00% of the ordinary income distributed by the Fund, for the year ended December 31, 2002, qualifies for the corporate dividends received deduction. For the fiscal year ended December 31, 2002, the Fund designates long-term capital gains of $70,284. Columbia Balanced Fund 26.78% of the ordinary income distributed by the Fund, for the year ended December 31, 2002, qualifies for the corporate dividends received deduction. Columbia National Municipal Bond Fund 99.61% of the distributions from net investment income will be treated as exempt income for federal income tax purposes. For the fiscal year ended December 31, 2002, the Fund designates long-term capital gains of $75,809. Columbia Oregon Municipal Bond Fund 99.72% of the distributions from net investment income will be treated as exempt income for federal income tax purposes. For the fiscal year ended December 31, 2002, the Fund designates long-term capital gains of $5,100,758. 160 UNAUDITED INFORMATION - -------------------------------------------------------------------------------- Results of Special Meeting of Shareholders On July 31, 2002, a Special Meeting of Shareholders of the Funds was held to conduct a vote for and against the approval of the Items listed on the Trust's Proxy Statement for said meeting. On May 24, 2002, the record date for the Meeting, the Funds had shares outstanding as follows: Columbia Common Stock Fund, Inc. 34,553,054.337 Columbia Growth Fund, Inc. 40,168,028.901 Columbia International Stock Fund, Inc. 11,296,916.362 Columbia Special Fund, Inc. 40,169,896.686 Columbia Small Cap Fund, Inc. 30,619,278.035 Columbia Real Estate Equity Fund, Inc. 41,060,248.826 Columbia Technology Fund, Inc. 2,113,919.143 Columbia Strategic Value Fund, Inc. 24,396,374.658 Columbia Balanced Fund, Inc. 45,008,669.987 Columbia Short Term Bond Fund, Inc. 8,902,965.579 Columbia Fixed Income Securities Fund, Inc. 34,621,835.925 Columbia National Municipal Bond Fund, Inc. 1,563,229.257 Columbia Oregon Municipal Bond Fund, Inc. 40,370,276.930 Columbia High Yield Fund, Inc. 47,786,394.675 Columbia Daily Income Company 1,218,279,984.400 161 UNAUDITED INFORMATION - -------------------------------------------------------------------------------- The votes cast were as follows:
Columbia Common Stock Fund: - ------------------------------------------------------------------------------------------------------------------------------ Proposal 1. Election of Directors: - ------------------------------------------------------------------------------------------------------------------------------ % of Shares to Total % of Shares to Elect J. Jerry Inskeep, Jr. to the Board of Directors: Shares Outstanding Shares Total Shares Voted - ------------------------------------------------------------------------------------------------------------------------------ For 18,422,648.713 53.317% 95.840% Against 799,587.080 2.314% 4.160% Abstain -- -- -- - ------------------------------------------------------------------------------------------------------------------------------ Elect James C. George to the Board of Directors: - ------------------------------------------------------------------------------------------------------------------------------ For 18,447,247.393 53.388% 95.968% Against 774,988.400 2.243% 4.032% Abstain -- -- -- - ------------------------------------------------------------------------------------------------------------------------------ Elect Patrick J. Simpson to the Board of Directors: - ------------------------------------------------------------------------------------------------------------------------------ For 18,419,906.043 53.309% 95.826% Against 802,329.750 2.322% 4.174% Abstain -- -- -- - ------------------------------------------------------------------------------------------------------------------------------ Elect Richard L. Woolworth to the Board of Directors: - ------------------------------------------------------------------------------------------------------------------------------ For 18,435,148.007 53.353% 95.905% Against 787,087.786 2.278% 4.095% Abstain -- -- -- - ------------------------------------------------------------------------------------------------------------------------------ Elect Charles R. Nelson to the Board of Directors: - ------------------------------------------------------------------------------------------------------------------------------ For 18,423,777.179 53.320% 95.846% Against 798,458.614 2.311% 4.154% Abstain -- -- -- - ------------------------------------------------------------------------------------------------------------------------------ Proposal 2. Amend Articles of Incorporation: - ------------------------------------------------------------------------------------------------------------------------------ To allow the issuance of multiple classes of shares: - ------------------------------------------------------------------------------------------------------------------------------ For 15,791,823.277 45.703% 82.154% Against 1,378,215.047 3.989% 7.170% Abstain 1,026,606.469 2.971% 10.676% - ------------------------------------------------------------------------------------------------------------------------------ Proposal 3. Update and amend investment restrictions: - ------------------------------------------------------------------------------------------------------------------------------ To modify the investment restriction regarding lending: - ------------------------------------------------------------------------------------------------------------------------------ For 16,014,516.044 46.348% 83.312% Against 1,104,859.667 3.198% 5.748% Abstain 1,077,269.082 3.118% 10.940% - ------------------------------------------------------------------------------------------------------------------------------ To modify and reclassify the investment restriction regarding investments in restricted and illiquid securities: - ------------------------------------------------------------------------------------------------------------------------------ For 15,708,901.743 45.463% 81.723% Against 1,368,690.463 3.961% 7.120% Abstain 1,119,052.587 3.239% 11.157% - ------------------------------------------------------------------------------------------------------------------------------ To eliminate the investment restriction regarding the purchase of securities of other investment companies: - ------------------------------------------------------------------------------------------------------------------------------ For 16,130,498.479 46.683% 83.916% Against 1,155,739.075 3.345% 6.013% Abstain 910,407.239 2.635% 10.071% - ------------------------------------------------------------------------------------------------------------------------------ Proposal 4. Ratify the selection of PricewaterhouseCoopers LLP as independent accountant: - ------------------------------------------------------------------------------------------------------------------------------ For 17,804,329.567 51.528% 92.624% Against 555,366.191 1.607% 2.889% Abstain 862,540.035 2.496% 4.487% - ------------------------------------------------------------------------------------------------------------------------------
162 UNAUDITED INFORMATION - --------------------------------------------------------------------------------
Columbia Growth Fund: - ------------------------------------------------------------------------------------------------------------------------------ Proposal 1. Election of Directors: - ------------------------------------------------------------------------------------------------------------------------------ % of Shares to Total % of Shares to Elect J. Jerry Inskeep, Jr. to the Board of Directors: Shares Outstanding Shares Total Shares Voted - ------------------------------------------------------------------------------------------------------------------------------ For 20,652,539.079 51.415% 93.794% Against 1,366,612.013 3.402% 6.206% Abstain -- -- -- - ------------------------------------------------------------------------------------------------------------------------------ Elect James C. George to the Board of Directors: - ------------------------------------------------------------------------------------------------------------------------------ For 20,630,312.322 51.360% 93.693% Against 1,388,838.770 3.458% 6.307% Abstain -- -- -- - ------------------------------------------------------------------------------------------------------------------------------ Elect Patrick J. Simpson to the Board of Directors: - ------------------------------------------------------------------------------------------------------------------------------ For 20,595,486.965 51.273% 93.534% Against 1,423,664.127 3.544% 6.466% Abstain -- -- -- - ------------------------------------------------------------------------------------------------------------------------------ Elect Richard L. Woolworth to the Board of Directors: - ------------------------------------------------------------------------------------------------------------------------------ For 20,583,660.521 51.244% 93.481% Against 1,435,490.571 3.574% 6.519% Abstain -- -- -- - ------------------------------------------------------------------------------------------------------------------------------ Elect Charles R. Nelson to the Board of Directors: - ------------------------------------------------------------------------------------------------------------------------------ For 20,562,412.843 51.191% 93.384% Against 1,456,738.249 3.627% 6.616% Abstain -- -- -- - ------------------------------------------------------------------------------------------------------------------------------ Proposal 2. Amend Articles of Incorporation: - ------------------------------------------------------------------------------------------------------------------------------ To allow the issuance of multiple classes of shares: - ------------------------------------------------------------------------------------------------------------------------------ For 16,554,376.853 41.213% 75.182% Against 2,952,063.946 7.349% 13.407% Abstain 1,471,986.293 3.665% 11.411% - ------------------------------------------------------------------------------------------------------------------------------ Proposal 3. Update and amend investment restrictions: - ------------------------------------------------------------------------------------------------------------------------------ To modify the investment restriction regarding lending: - ------------------------------------------------------------------------------------------------------------------------------ For 16,758,628.224 41.721% 76.109% Against 2,641,918.080 6.577% 11.998% Abstain 1,577,880.788 3.928% 11.893% - ------------------------------------------------------------------------------------------------------------------------------ To modify and reclassify the investment restriction regarding investments in restricted and illiquid securities: - ------------------------------------------------------------------------------------------------------------------------------ For 16,468,951.053 41.000% 74.794% Against 2,948,526.995 7.340% 13.391% Abstain 1,560,949.044 3.886% 11.815% - ------------------------------------------------------------------------------------------------------------------------------ To eliminate the investment restriction regarding the purchase of securities of other investment companies: - ------------------------------------------------------------------------------------------------------------------------------ For 16,861,116.295 41.976% 76.575% Against 2,742,273.993 6.827% 12.454% Abstain 1,375,036.804 3.423% 10.971% - ------------------------------------------------------------------------------------------------------------------------------ To eliminate the investment restriction on investing more than 5% of a Fund's assets in securities of any one issuer: - ------------------------------------------------------------------------------------------------------------------------------ For 16,080,771.093 40.034% 73.031% Against 3,527,050.974 8.781% 16.018% Abstain 1,370,605.025 3.412% 10.951% - ------------------------------------------------------------------------------------------------------------------------------ Proposal 4. Ratify the selection of PricewaterhouseCoopers LLP as independent accountant: - ------------------------------------------------------------------------------------------------------------------------------ For 19,737,141.673 49.136% 89.636% Against 995,075.555 2.477% 4.519% Abstain 1,286,933.864 3.204% 5.845% - ------------------------------------------------------------------------------------------------------------------------------
163 UNAUDITED INFORMATION - --------------------------------------------------------------------------------
Columbia International Stock Fund: - ------------------------------------------------------------------------------------------------------------------------------ Proposal 1. Election of Directors: - ------------------------------------------------------------------------------------------------------------------------------ % of Shares to Total % of Shares to Elect J. Jerry Inskeep, Jr. to the Board of Directors: Shares Outstanding Shares Total Shares Voted - ------------------------------------------------------------------------------------------------------------------------------ For 6,349,287.603 56.204% 92.999% Against 477,984.366 4.231% 7.001% Abstain -- -- -- - ------------------------------------------------------------------------------------------------------------------------------ Elect James C. George to the Board of Directors: - ------------------------------------------------------------------------------------------------------------------------------ For 6,356,804.887 56.270% 93.109% Against 470,467.082 4.165% 6.891% Abstain -- -- -- - ------------------------------------------------------------------------------------------------------------------------------ Elect Patrick J. Simpson to the Board of Directors: - ------------------------------------------------------------------------------------------------------------------------------ For 6,350,793.794 56.217% 93.021% Against 476,478.175 4.218% 6.979% Abstain -- -- -- - ------------------------------------------------------------------------------------------------------------------------------ Elect Richard L. Woolworth to the Board of Directors: - ------------------------------------------------------------------------------------------------------------------------------ For 6,349,181.002 56.203% 92.997% Against 478,090.967 4.232% 7.003% Abstain -- -- -- - ------------------------------------------------------------------------------------------------------------------------------ Elect Charles R. Nelson to the Board of Directors: - ------------------------------------------------------------------------------------------------------------------------------ For 6,352,058.709 56.228% 93.039% Against 475,213.260 4.207% 6.961% Abstain -- -- -- - ------------------------------------------------------------------------------------------------------------------------------ Proposal 2. Amend Articles of Incorporation: - ------------------------------------------------------------------------------------------------------------------------------ To allow the issuance of multiple classes of shares: - ------------------------------------------------------------------------------------------------------------------------------ For 5,214,138.910 46.155% 76.372% Against 659,943.514 5.842% 9.666% Abstain 575,677.545 5.096% 13.962% - ------------------------------------------------------------------------------------------------------------------------------ Proposal 3. Update and amend investment restrictions: - ------------------------------------------------------------------------------------------------------------------------------ To modify the investment restriction regarding lending: - ------------------------------------------------------------------------------------------------------------------------------ For 5,386,621.550 47.682% 78.899% Against 517,399.314 4.580% 7.578% Abstain 545,739.105 4.831% 13.523% - ------------------------------------------------------------------------------------------------------------------------------ To modify and reclassify the investment restriction regarding investments in restricted and illiquid securities: - ------------------------------------------------------------------------------------------------------------------------------ For 5,333,372.903 47.211% 78.119% Against 548,063.062 4.851% 8.028% Abstain 568,324.004 5.031% 13.853% - ------------------------------------------------------------------------------------------------------------------------------ To eliminate the investment restriction regarding the purchase of securities of other investment companies: - ------------------------------------------------------------------------------------------------------------------------------ For 5,388,889.348 47.702% 78.932% Against 553,864.131 4.903% 8.113% Abstain 507,006.490 4.488% 12.955% - ------------------------------------------------------------------------------------------------------------------------------ Proposal 4. Ratify the selection of PricewaterhouseCoopers LLP as independent accountant: - ------------------------------------------------------------------------------------------------------------------------------ For 6,107,503.248 54.063% 89.458% Against 249,978.565 2.213% 3.661% Abstain 469,790.156 4.159% 6.881% - ------------------------------------------------------------------------------------------------------------------------------
164 UNAUDITED INFORMATION - --------------------------------------------------------------------------------
Columbia Special Fund: - ------------------------------------------------------------------------------------------------------------------------------- Proposal 1. Election of Directors: - ------------------------------------------------------------------------------------------------------------------------------- % of Shares to Total % of Shares to Elect J. Jerry Inskeep, Jr. to the Board of Directors: Shares Outstanding Shares Total Shares Voted - ------------------------------------------------------------------------------------------------------------------------------- For 23,674,925.663 58.937% 95.566% Against 1,098,489.471 2.735% 4.434% Abstain -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Elect James C. George to the Board of Directors: - ------------------------------------------------------------------------------------------------------------------------------- For 23,707,936.016 59.019% 95.699% Against 1,065,479.118 2.652% 4.301% Abstain -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Elect Patrick J. Simpson to the Board of Directors: - ------------------------------------------------------------------------------------------------------------------------------- For 23,646,038.922 58.865% 95.449% Against 1,127,376.212 2.807% 4.551% Abstain -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Elect Richard L. Woolworth to the Board of Directors: - ------------------------------------------------------------------------------------------------------------------------------- For 23,654,327.981 58.886% 95.483% Against 1,119,087.153 2.786% 4.517% Abstain -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Elect Charles R. Nelson to the Board of Directors: - ------------------------------------------------------------------------------------------------------------------------------- For 23,647,033.580 58.868% 95.453% Against 1,126,381.554 2.804% 4.547% Abstain -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Proposal 2. Amend Articles of Incorporation: - ------------------------------------------------------------------------------------------------------------------------------- To allow the issuance of multiple classes of shares: - ------------------------------------------------------------------------------------------------------------------------------- For 18,846,030.965 46.916% 76.074% Against 2,257,008.992 5.619% 9.111% Abstain 1,195,315.177 2.976% 14.815% - ------------------------------------------------------------------------------------------------------------------------------- Proposal 3. Update and amend investment restrictions: - ------------------------------------------------------------------------------------------------------------------------------- To modify the investment restriction regarding lending: - ------------------------------------------------------------------------------------------------------------------------------- For 18,855,444.287 46.939% 76.112% Against 2,207,058.717 5.494% 8.909% Abstain 1,235,852.130 3.077% 14.979% - ------------------------------------------------------------------------------------------------------------------------------- To modify and reclassify the investment restriction regarding investments in restricted and illiquid securities: - ------------------------------------------------------------------------------------------------------------------------------- For 18,818,161.523 46.846% 75.961% Against 2,216,064.394 5.517% 8.945% Abstain 1,264,129.217 3.147% 15.094% - ------------------------------------------------------------------------------------------------------------------------------- To eliminate the investment restriction regarding the purchase of securities of other investment companies: - ------------------------------------------------------------------------------------------------------------------------------- For 19,020,814.102 47.351% 76.779% Against 2,146,603.070 5.344% 8.665% Abstain 1,130,937.962 2.815% 14.556% - ------------------------------------------------------------------------------------------------------------------------------- Proposal 4. Ratify the selection of PricewaterhouseCoopers LLP as independent accountant: - ------------------------------------------------------------------------------------------------------------------------------- For 22,975,554.043 57.196% 92.742% Against 763,410.486 1.900% 3.082% Abstain 1,034,450.605 2.575% 4.176% - -------------------------------------------------------------------------------------------------------------------------------
165 UNAUDITED INFORMATION - --------------------------------------------------------------------------------
Columbia Small Cap Fund: - ------------------------------------------------------------------------------------------------------------------------------- Proposal 1. Election of Directors: - ------------------------------------------------------------------------------------------------------------------------------- % of Shares to Total % of Shares to Elect J. Jerry Inskeep, Jr. to the Board of Directors: Shares Outstanding Shares Total Shares Voted - ------------------------------------------------------------------------------------------------------------------------------- For 18,940,203.843 61.857% 97.485% Against 488,649.270 1.596% 2.515% Abstain -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Elect James C. George to the Board of Directors: - ------------------------------------------------------------------------------------------------------------------------------- For 18,960,798.147 61.924% 97.591% Against 468,054.966 1.529% 2.409% Abstain -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Elect Patrick J. Simpson to the Board of Directors: - ------------------------------------------------------------------------------------------------------------------------------- For 18,950,316.569 61.890% 97.537% Against 478,536.544 1.563% 2.463% Abstain -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Elect Richard L. Woolworth to the Board of Directors: - ------------------------------------------------------------------------------------------------------------------------------- For 18,953,211.802 61.900% 97.552% Against 475,641.311 1.553% 2.448% Abstain -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Elect Charles R. Nelson to the Board of Directors: - ------------------------------------------------------------------------------------------------------------------------------- For 18,950,459.008 61.891% 97.538% Against 478,394.105 1.562% 2.462% Abstain -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Proposal 2. Amend Articles of Incorporation: - ------------------------------------------------------------------------------------------------------------------------------- To allow the issuance of multiple classes of shares: - ------------------------------------------------------------------------------------------------------------------------------- For 14,636,323.387 47.801% 75.333% Against 1,001,867.184 3.272% 5.157% Abstain 361,955.542 1.182% 19.510% - ------------------------------------------------------------------------------------------------------------------------------- Proposal 3. Update and amend investment restrictions: - ------------------------------------------------------------------------------------------------------------------------------- To modify the investment restriction regarding lending: - ------------------------------------------------------------------------------------------------------------------------------- For 14,863,897.402 48.544% 76.504% Against 736,596.072 2.406% 3.791% Abstain 399,652.639 1.305% 19.705% - ------------------------------------------------------------------------------------------------------------------------------- To modify and reclassify the investment restriction regarding investments in restricted and illiquid securities: - ------------------------------------------------------------------------------------------------------------------------------- For 14,766,437.204 48.226% 76.003% Against 830,077.194 2.711% 4.272% Abstain 403,581.715 1.318% 19.725% - ------------------------------------------------------------------------------------------------------------------------------- To eliminate the investment restriction regarding the purchase of securities of other investment companies: - ------------------------------------------------------------------------------------------------------------------------------- For 14,932,953.052 48.770% 76.860% Against 706,236.993 2.307% 3.635% Abstain 360,956.068 1.179% 19.505% - ------------------------------------------------------------------------------------------------------------------------------- Proposal 4. Ratify the selection of PricewaterhouseCoopers LLP as independent accountant: - ------------------------------------------------------------------------------------------------------------------------------- For 18,780,519.571 61.336% 96.663% Against 310,349.791 1.014% 1.597% Abstain 337,983.751 1.104% 1.740% - -------------------------------------------------------------------------------------------------------------------------------
166 UNAUDITED INFORMATION - --------------------------------------------------------------------------------
Columbia Real Estate Equity Fund: - ----------------------------------------------------------------------------------------------------------------------------- Proposal 1. Election of Directors: - ----------------------------------------------------------------------------------------------------------------------------- % of Shares to Total % of Shares to Elect J. Jerry Inskeep, Jr. to the Board of Directors: Shares Outstanding Shares Total Shares Voted - ----------------------------------------------------------------------------------------------------------------------------- For 21,260,306.568 51.778% 97.385% Against 570,970.936 1.391% 2.615% Abstain -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- Elect James C. George to the Board of Directors: - ----------------------------------------------------------------------------------------------------------------------------- For 21,287,482.631 51.845% 97.509% Against 543,794.873 1.324% 2.491% Abstain -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- Elect Patrick J. Simpson to the Board of Directors: - ----------------------------------------------------------------------------------------------------------------------------- For 21,265,004.255 51.790% 97.406% Against 566,273.249 1.379% 2.594% Abstain -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- Elect Richard L. Woolworth to the Board of Directors: - ----------------------------------------------------------------------------------------------------------------------------- For 21,279,565.942 51.825% 97.473% Against 551,711.562 1.344% 2.527% Abstain -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- Elect Charles R. Nelson to the Board of Directors: - ----------------------------------------------------------------------------------------------------------------------------- For 21,247,994.590 51.748% 97.328% Against 583,282.914 1.421% 2.672% Abstain -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- Proposal 2. Amend Articles of Incorporation: - ----------------------------------------------------------------------------------------------------------------------------- To allow the issuance of multiple classes of shares: - ----------------------------------------------------------------------------------------------------------------------------- For 15,231,176.124 37.095% 69.768% Against 1,737,974.733 4.233% 7.961% Abstain 619,232.647 1.508% 22.271% - ----------------------------------------------------------------------------------------------------------------------------- Proposal 3. Update and amend investment restrictions: - ----------------------------------------------------------------------------------------------------------------------------- To modify the investment restriction regarding lending: - ----------------------------------------------------------------------------------------------------------------------------- For 15,351,132.879 37.387% 70.317% Against 1,524,099.398 3.712% 6.981% Abstain 713,151.227 1.737% 22.702% - ----------------------------------------------------------------------------------------------------------------------------- To modify and reclassify the investment restriction regarding investments in restricted and illiquid securities: - ----------------------------------------------------------------------------------------------------------------------------- For 15,236,266.666 37.107% 69.791% Against 1,582,256.834 3.854% 7.248% Abstain 769,860.004 1.875% 22.961% - ----------------------------------------------------------------------------------------------------------------------------- To eliminate the investment restriction regarding the purchase of securities of other investment companies: - ----------------------------------------------------------------------------------------------------------------------------- For 15,383,290.551 37.465% 70.464% Against 1,547,123.367 3.768% 7.087% Abstain 657,969.586 1.602% 22.449% - ----------------------------------------------------------------------------------------------------------------------------- Proposal 4. Ratify the selection of PricewaterhouseCoopers LLP as independent accountant: - ----------------------------------------------------------------------------------------------------------------------------- For 20,957,966.898 51.042% 96.000% Against 366,287.586 0.892% 1.678% Abstain 507,023.020 1.235% 2.322% - -----------------------------------------------------------------------------------------------------------------------------
167 UNAUDITED INFORMATION - --------------------------------------------------------------------------------
Columbia Technology Fund: - ------------------------------------------------------------------------------------------------------------------------------- Proposal 1. Election of Directors: - ------------------------------------------------------------------------------------------------------------------------------- % of Shares to Total % of Shares to Elect J. Jerry Inskeep, Jr. to the Board of Directors: Shares Outstanding Shares Total Shares Voted - ------------------------------------------------------------------------------------------------------------------------------- For 1,191,494.325 56.364% 84.817% Against 213,289.767 10.090% 15.183% Abstain -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Elect James C. George to the Board of Directors: - ------------------------------------------------------------------------------------------------------------------------------- For 1,191,562.936 56.367% 84.822% Against 213,221.156 10.087% 15.178% Abstain -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Elect Patrick J. Simpson to the Board of Directors: - ------------------------------------------------------------------------------------------------------------------------------- For 1,185,943.202 56.102% 84.422% Against 218,840.890 10.352% 15.578% Abstain -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Elect Richard L. Woolworth to the Board of Directors: - ------------------------------------------------------------------------------------------------------------------------------- For 1,191,422.091 56.361% 84.812% Against 213,362.001 10.093% 15.188% Abstain -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Elect Charles R. Nelson to the Board of Directors: - ------------------------------------------------------------------------------------------------------------------------------- For 1,185,151.252 56.064% 84.365% Against 219,632.840 10.390% 15.635% Abstain -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Proposal 2. Amend Articles of Incorporation: - ------------------------------------------------------------------------------------------------------------------------------- To allow the issuance of multiple classes of shares: - ------------------------------------------------------------------------------------------------------------------------------- For 980,444.993 46.380% 69.793% Against 336,449.070 15.916% 23.950% Abstain 65,462.029 3.097% 6.257% - ------------------------------------------------------------------------------------------------------------------------------- Proposal 3. Update and amend investment restrictions: - ------------------------------------------------------------------------------------------------------------------------------- To modify the investment restriction regarding lending: - ------------------------------------------------------------------------------------------------------------------------------- For 1,109,342.970 52.478% 78.969% Against 162,319.294 7.679% 11.555% Abstain 110,693.828 5.236% 9.476% - ------------------------------------------------------------------------------------------------------------------------------- To modify and reclassify the investment restriction regarding investments in restricted and illiquid securities: - ------------------------------------------------------------------------------------------------------------------------------- For 1,107,153.591 52.374% 78.813% Against 168,990.105 7.994% 12.030% Abstain 106,212.396 5.024% 9.157% - ------------------------------------------------------------------------------------------------------------------------------- To eliminate the investment restriction regarding the purchase of securities of other investment companies: - ------------------------------------------------------------------------------------------------------------------------------- For 1,143,086.650 54.074% 81.371% Against 143,762.943 6.801% 10.234% Abstain 95,506.499 4.518% 8.395% - ------------------------------------------------------------------------------------------------------------------------------- Proposal 4. Ratify the selection of PricewaterhouseCoopers LLP as independent accountant: - ------------------------------------------------------------------------------------------------------------------------------- For 1,264,705.030 59.828% 90.029% Against 79,020.607 3.738% 5.625% Abstain 61,058.455 2.888% 4.346% - -------------------------------------------------------------------------------------------------------------------------------
168 UNAUDITED INFORMATION - --------------------------------------------------------------------------------
Columbia Strategic Value Fund: - ------------------------------------------------------------------------------------------------------------------------------ Proposal 1. Election of Directors: - ------------------------------------------------------------------------------------------------------------------------------ % of Shares to Total % of Shares to Elect J. Jerry Inskeep, Jr. to the Board of Directors: Shares Outstanding Shares Total Shares Voted - ------------------------------------------------------------------------------------------------------------------------------ For 14,478,171.811 59.346% 95.679% Against 653,814.636 2.680% 4.321% Abstain -- -- -- - ------------------------------------------------------------------------------------------------------------------------------ Elect James C. George to the Board of Directors: - ------------------------------------------------------------------------------------------------------------------------------ For 14,477,828.819 59.344% 95.677% Against 654,157.628 2.681% 4.323% Abstain -- -- -- - ------------------------------------------------------------------------------------------------------------------------------ Elect Patrick J. Simpson to the Board of Directors: - ------------------------------------------------------------------------------------------------------------------------------ For 14,439,443.824 59.187% 95.423% Against 692,542.623 2.839% 4.577% Abstain -- -- -- - ------------------------------------------------------------------------------------------------------------------------------ Elect Richard L. Woolworth to the Board of Directors: - ------------------------------------------------------------------------------------------------------------------------------ For 14,454,358.078 59.248% 95.522% Against 677,628.369 2.778% 4.478% Abstain -- -- -- - ------------------------------------------------------------------------------------------------------------------------------ Elect Charles R. Nelson to the Board of Directors: - ------------------------------------------------------------------------------------------------------------------------------ For 14,433,744.092 59.163% 95.386% Against 698,242.355 2.862% 4.614% Abstain -- -- -- - ------------------------------------------------------------------------------------------------------------------------------ Proposal 2. Amend Articles of Incorporation: - ------------------------------------------------------------------------------------------------------------------------------ To allow the issuance of multiple classes of shares: - ------------------------------------------------------------------------------------------------------------------------------ For 11,441,245.514 46.897% 75.610% Against 1,518,519.908 6.224% 10.035% Abstain 903,808.025 3.705% 14.355% - ------------------------------------------------------------------------------------------------------------------------------ Proposal 3. Update and amend investment restrictions: - ------------------------------------------------------------------------------------------------------------------------------ To modify the investment restriction regarding lending: - ------------------------------------------------------------------------------------------------------------------------------ For 11,448,532.617 46.927% 75.658% Against 1,526,347.352 6.256% 10.087% Abstain 888,693.478 3.643% 14.255% - ------------------------------------------------------------------------------------------------------------------------------ To modify and reclassify the investment restriction regarding investments in restricted and illiquid securities: - ------------------------------------------------------------------------------------------------------------------------------ For 11,427,321.309 46.840% 75.518% Against 1,484,261.973 6.084% 9.809% Abstain 951,990.165 3.902% 14.673% - ------------------------------------------------------------------------------------------------------------------------------ To eliminate the investment restriction regarding the purchase of securities of other investment companies: - ------------------------------------------------------------------------------------------------------------------------------ For 11,657,735.219 47.785% 77.040% Against 1,512,958.770 6.202% 9.998% Abstain 692,879.458 2.840% 12.962% - ------------------------------------------------------------------------------------------------------------------------------ Proposal 4. Ratify the selection of PricewaterhouseCoopers LLP as independent accountant: - ------------------------------------------------------------------------------------------------------------------------------ For 14,158,004.808 58.033% 93.563% Against 341,840.203 1.401% 2.259% Abstain 632,141.436 2.591% 4.178% - ------------------------------------------------------------------------------------------------------------------------------
169 UNAUDITED INFORMATION - --------------------------------------------------------------------------------
Columbia Balanced Fund: - ------------------------------------------------------------------------------------------------------------------------------ Proposal 1. Election of Directors: - ------------------------------------------------------------------------------------------------------------------------------ % of Shares to Total % of Shares to Elect J. Jerry Inskeep, Jr. to the Board of Directors: Shares Outstanding Shares Total Shares Voted - ------------------------------------------------------------------------------------------------------------------------------ For 24,205,562.036 53.780% 94.017% Against 1,540,433.275 3.423% 5.983% Abstain -- -- -- - ------------------------------------------------------------------------------------------------------------------------------ Elect James C. George to the Board of Directors: - ------------------------------------------------------------------------------------------------------------------------------ For 24,205,056.235 53.779% 94.015% Against 1,540,939.076 3.424% 5.985% Abstain -- -- -- - ------------------------------------------------------------------------------------------------------------------------------ Elect Patrick J. Simpson to the Board of Directors: - ------------------------------------------------------------------------------------------------------------------------------ For 24,089,957.296 53.523% 93.568% Against 1,656,038.015 3.679% 6.432% Abstain -- -- -- - ------------------------------------------------------------------------------------------------------------------------------ Elect Richard L. Woolworth to the Board of Directors: - ------------------------------------------------------------------------------------------------------------------------------ For 24,192,927.006 53.752% 93.968% Against 1,553,068.305 3.451% 6.032% Abstain -- -- -- - ------------------------------------------------------------------------------------------------------------------------------ Elect Charles R. Nelson to the Board of Directors: - ------------------------------------------------------------------------------------------------------------------------------ For 24,147,397.936 53.651% 93.791% Against 1,598,597.375 3.552% 6.209% Abstain -- -- -- - ------------------------------------------------------------------------------------------------------------------------------ Proposal 2. Amend Articles of Incorporation: - ------------------------------------------------------------------------------------------------------------------------------ To allow the issuance of multiple classes of shares: - ------------------------------------------------------------------------------------------------------------------------------ For 20,529,395.066 45.612% 79.738% Against 2,532,434.354 5.627% 9.836% Abstain 1,190,241.891 2.644% 10.426% - ------------------------------------------------------------------------------------------------------------------------------ Proposal 3. Update and amend investment restrictions: - ------------------------------------------------------------------------------------------------------------------------------ To modify the investment restriction regarding lending: - ------------------------------------------------------------------------------------------------------------------------------ For 21,476,706.767 47.717% 83.418% Against 1,573,926.921 3.497% 6.113% Abstain 1,201,437.623 2.669% 10.469% - ------------------------------------------------------------------------------------------------------------------------------ To modify and reclassify the investment restriction regarding investments in restricted and illiquid securities: - ------------------------------------------------------------------------------------------------------------------------------ For 20,298,995.329 45.100% 78.842% Against 2,697,430.774 5.993% 10.477% Abstain 1,255,645.208 2.790% 10.681% - ------------------------------------------------------------------------------------------------------------------------------ To eliminate the investment restriction regarding the purchase of securities of other investment companies: - ------------------------------------------------------------------------------------------------------------------------------ For 21,314,925.035 47.357% 82.789% Against 1,775,923.728 3.946% 6.898% Abstain 1,161,222.548 2.580% 10.313% - ------------------------------------------------------------------------------------------------------------------------------ Proposal 4. Ratify the selection of PricewaterhouseCoopers LLP as independent accountant: - ------------------------------------------------------------------------------------------------------------------------------ For 23,895,048.218 53.090% 92.811% Against 821,599.860 1.825% 3.191% Abstain 1,029,347.233 2.287% 3.998% - ------------------------------------------------------------------------------------------------------------------------------
170 UNAUDITED INFORMATION - --------------------------------------------------------------------------------
Columbia Short Term Bond Fund: - ------------------------------------------------------------------------------------------------------------------------------- Proposal 1. Election of Directors: - ------------------------------------------------------------------------------------------------------------------------------- % of Shares to Total % of Shares to Elect J. Jerry Inskeep, Jr. to the Board of Directors: Shares Outstanding Shares Total Shares Voted - ------------------------------------------------------------------------------------------------------------------------------- For 5,219,499.509 58.627% 88.824% Against 656,739.784 7.377% 11.176% Abstain -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Elect James C. George to the Board of Directors: - ------------------------------------------------------------------------------------------------------------------------------- For 5,217,306.779 58.602% 88.786% Against 658,932.514 7.401% 11.214% Abstain -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Elect Patrick J. Simpson to the Board of Directors: - ------------------------------------------------------------------------------------------------------------------------------- For 5,207,379.614 58.490% 88.618% Against 668,859.679 7.513% 11.382% Abstain -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Elect Richard L. Woolworth to the Board of Directors: - ------------------------------------------------------------------------------------------------------------------------------- For 5,206,339.826 58.479% 88.600% Against 669,899.467 7.524% 11.400% Abstain -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Elect Charles R. Nelson to the Board of Directors: - ------------------------------------------------------------------------------------------------------------------------------- For 5,202,583.328 58.437% 88.536% Against 673,655.965 7.567% 11.464% Abstain -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Proposal 2. Amend Articles of Incorporation: - ------------------------------------------------------------------------------------------------------------------------------- To allow the issuance of multiple classes of shares: - ------------------------------------------------------------------------------------------------------------------------------- For 4,290,341.773 48.190% 73.012% Against 922,670.957 10.364% 15.702% Abstain 538,701.563 6.051% 11.286% - ------------------------------------------------------------------------------------------------------------------------------- Proposal 3. Update and amend investment restrictions: - ------------------------------------------------------------------------------------------------------------------------------- To modify the investment restriction regarding lending: - ------------------------------------------------------------------------------------------------------------------------------- For 4,449,645.536 49.979% 75.723% Against 773,756.785 8.691% 13.168% Abstain 528,311.972 5.934% 11.109% - ------------------------------------------------------------------------------------------------------------------------------- To modify and reclassify the investment restriction regarding investments in restricted and illiquid securities: - ------------------------------------------------------------------------------------------------------------------------------- For 4,399,169.484 49.412% 74.864% Against 803,052.204 9.020% 13.666% Abstain 549,492.605 6.172% 11.470% - ------------------------------------------------------------------------------------------------------------------------------- To eliminate the investment restriction regarding the purchase of securities of other investment companies: - ------------------------------------------------------------------------------------------------------------------------------- For 4,451,482.604 50.000% 75.754% Against 823,352.406 9.248% 14.012% Abstain 476,879.283 5.356% 10.234% - ------------------------------------------------------------------------------------------------------------------------------- Proposal 4. Ratify the selection of PricewaterhouseCoopers LLP as independent accountant: - ------------------------------------------------------------------------------------------------------------------------------- For 5,074,828.630 57.002% 86.362% Against 304,465.895 3.420% 5.181% Abstain 496,944.768 5.582% 8.457% - -------------------------------------------------------------------------------------------------------------------------------
171 UNAUDITED INFORMATION - --------------------------------------------------------------------------------
Columbia Fixed Income Securities Fund: - ---------------------------------------------------------------------------------------------------------------------------- Proposal 1. Election of Directors: - ---------------------------------------------------------------------------------------------------------------------------- % of Shares to Total % of Shares to Elect J. Jerry Inskeep, Jr. to the Board of Directors: Shares Outstanding Shares Total Shares Voted - ---------------------------------------------------------------------------------------------------------------------------- For 23,001,945.801 66.438% 95.811% Against 1,005,789.217 2.905% 4.189% Abstain -- -- -- - ---------------------------------------------------------------------------------------------------------------------------- Elect James C. George to the Board of Directors: - ---------------------------------------------------------------------------------------------------------------------------- For 23,005,713.449 66.449% 95.826% Against 1,002,021.569 2.894% 4.174% Abstain -- -- -- - ---------------------------------------------------------------------------------------------------------------------------- Elect Patrick J. Simpson to the Board of Directors: - ---------------------------------------------------------------------------------------------------------------------------- For 22,993,307.150 66.413% 95.775% Against 1,014,427.868 2.930% 4.225% Abstain -- -- -- - ---------------------------------------------------------------------------------------------------------------------------- Elect Richard L. Woolworth to the Board of Directors: - ---------------------------------------------------------------------------------------------------------------------------- For 22,962,310.868 66.323% 95.645% Against 1,045,424.150 3.020% 4.355% Abstain -- -- -- - ---------------------------------------------------------------------------------------------------------------------------- Elect Charles R. Nelson to the Board of Directors: - ---------------------------------------------------------------------------------------------------------------------------- For 22,972,309.771 66.352% 95.687% Against 1,035,425.247 2.991% 4.313% Abstain -- -- -- - ---------------------------------------------------------------------------------------------------------------------------- Proposal 2. Amend Articles of Incorporation: - ---------------------------------------------------------------------------------------------------------------------------- To allow the issuance of multiple classes of shares: - ---------------------------------------------------------------------------------------------------------------------------- For 17,822,170.713 51.477% 74.235% Against 1,714,679.312 4.953% 7.142% Abstain 1,387,634.993 4.008% 18.623% - ---------------------------------------------------------------------------------------------------------------------------- Proposal 3. Update and amend investment restrictions: - ---------------------------------------------------------------------------------------------------------------------------- To modify the investment restriction regarding lending: - ---------------------------------------------------------------------------------------------------------------------------- For 17,844,488.110 51.541% 74.328% Against 1,622,917.096 4.688% 6.760% Abstain 1,457,079.812 4.209% 18.912% - ---------------------------------------------------------------------------------------------------------------------------- To modify and reclassify the investment restriction regarding investments in restricted and illiquid securities: - ---------------------------------------------------------------------------------------------------------------------------- For 17,718,168.289 51.176% 73.802% Against 1,759,678.757 5.083% 7.330% Abstain 1,446,637.972 4.178% 18.868% - ---------------------------------------------------------------------------------------------------------------------------- To eliminate the investment restriction regarding the purchase of securities of other investment companies: - ---------------------------------------------------------------------------------------------------------------------------- For 18,016,879.079 52.039% 75.046% Against 1,564,731.568 4.519% 6.518% Abstain 1,342,874.371 3.879% 18.436% - ---------------------------------------------------------------------------------------------------------------------------- Proposal 4. Ratify the selection of PricewaterhouseCoopers LLP as independent accountant: - ---------------------------------------------------------------------------------------------------------------------------- For 20,996,538.062 60.645% 87.459% Against 1,840,327.510 5.316% 7.666% Abstain 1,170,477.446 3.381% 4.875% - ----------------------------------------------------------------------------------------------------------------------------
172 UNAUDITED INFORMATION - --------------------------------------------------------------------------------
Columbia National Municipal Bond Fund: - ------------------------------------------------------------------------------------------------------------------------------- Proposal 1. Election of Directors: - ------------------------------------------------------------------------------------------------------------------------------- % of Shares to Total % of Shares to Elect J. Jerry Inskeep, Jr. to the Board of Directors: Shares Outstanding Shares Total Shares Voted - ------------------------------------------------------------------------------------------------------------------------------- For 948,491.452 60.675% 99.059% Against 9,006.197 0.576% 0.941% Abstain -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Elect James C. George to the Board of Directors: - ------------------------------------------------------------------------------------------------------------------------------- For 944,955.245 60.449% 98.690% Against 12,542.404 0.802% 1.310% Abstain -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Elect Patrick J. Simpson to the Board of Directors: - ------------------------------------------------------------------------------------------------------------------------------- For 948,491.452 60.675% 99.059% Against 9,006.197 0.576% 0.941% Abstain -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Elect Richard L. Woolworth to the Board of Directors: - ------------------------------------------------------------------------------------------------------------------------------- For 838,698.951 53.652% 87.593% Against 118,798.698 7.600% 12.407% Abstain -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Elect Charles R. Nelson to the Board of Directors: - ------------------------------------------------------------------------------------------------------------------------------- For 944,955.245 60.449% 98.690% Against 12,542.404 0.802% 1.310% Abstain -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- Proposal 2. Amend Articles of Incorporation: - ------------------------------------------------------------------------------------------------------------------------------- To allow the issuance of multiple classes of shares: - ------------------------------------------------------------------------------------------------------------------------------- For 895,060.222 57.257% 93.479% Against 36,196.878 2.316% 3.780% Abstain 26,240.549 1.679% 2.741% - ------------------------------------------------------------------------------------------------------------------------------- Proposal 3. Update and amend investment restrictions: - ------------------------------------------------------------------------------------------------------------------------------- To modify the investment restriction regarding lending: - ------------------------------------------------------------------------------------------------------------------------------- For 909,201.471 58.162% 94.956% Against 33,920.496 2.170% 3.543% Abstain 14,375.682 0.920% 1.501% - ------------------------------------------------------------------------------------------------------------------------------- To eliminate the investment restriction regarding the purchase of securities of other investment companies: - ------------------------------------------------------------------------------------------------------------------------------- For 906,453.880 57.986% 94.669% Against 40,385.465 2.583% 4.218% Abstain 10,658.304 0.682% 1.113% - ------------------------------------------------------------------------------------------------------------------------------- Proposal 4. Ratify the selection of PricewaterhouseCoopers LLP as independent accountant: - ------------------------------------------------------------------------------------------------------------------------------- For 933,690.856 59.728% 97.513% Against 15,344.169 0.982% 1.603% Abstain 8,462.624 0.541% 0.884% - -------------------------------------------------------------------------------------------------------------------------------
173 UNAUDITED INFORMATION - --------------------------------------------------------------------------------
Columbia Oregon Municipal Bond Fund: - --------------------------------------------------------------------------------------------------------------------------------- Proposal 1. Election of Directors: - --------------------------------------------------------------------------------------------------------------------------------- % of Shares to Total % of Shares to Elect J. Jerry Inskeep, Jr. to the Board of Directors: Shares Outstanding Shares Total Shares Voted - --------------------------------------------------------------------------------------------------------------------------------- For 28,302,820.082 70.108% 95.438% Against 1,352,816.270 3.351% 4.562% Abstain -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- Elect James C. George to the Board of Directors: - --------------------------------------------------------------------------------------------------------------------------------- For 28,445,871.807 70.462% 95.921% Against 1,209,764.545 2.997% 4.079% Abstain -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- Elect Patrick J. Simpson to the Board of Directors: - --------------------------------------------------------------------------------------------------------------------------------- For 28,832,533.654 70.306% 95.707% Against 1,273,102.698 3.154% 4.293% Abstain -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- Elect Richard L. Woolworth to the Board of Directors: - --------------------------------------------------------------------------------------------------------------------------------- For 28,387,276.769 70.317% 95.723% Against 1,268,359.583 3.142% 4.277% Abstain -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- Elect Charles R. Nelson to the Board of Directors: - --------------------------------------------------------------------------------------------------------------------------------- For 28,422,011.118 70.403% 95.840% Against 1,233,625.234 3.056% 4.160% Abstain -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- Proposal 2. Amend Articles of Incorporation: - --------------------------------------------------------------------------------------------------------------------------------- To allow the issuance of multiple classes of shares: - --------------------------------------------------------------------------------------------------------------------------------- For 21,963,308.085 54.405% 74.061% Against 4,211,511.672 10.432% 14.201% Abstain 1,704,146.595 4.221% 11.738% - --------------------------------------------------------------------------------------------------------------------------------- Proposal 3. Update and amend investment restrictions: - --------------------------------------------------------------------------------------------------------------------------------- To modify the investment restriction regarding lending: - --------------------------------------------------------------------------------------------------------------------------------- For 22,489,110.440 55.707% 75.834% Against 3,626,503.116 8.983% 12.229% Abstain 1,763,352.796 4.368% 11.937% - --------------------------------------------------------------------------------------------------------------------------------- To eliminate the investment restriction regarding the purchase of securities of other investment companies: - --------------------------------------------------------------------------------------------------------------------------------- For 22,679,672.182 56.179% 76.477% Against 3,455,012.795 8.558% 11.650% Abstain 1,744,281.375 4.321% 11.873% - --------------------------------------------------------------------------------------------------------------------------------- Proposal 4. Ratify the selection of PricewaterhouseCoopers LLP as independent accountant: - --------------------------------------------------------------------------------------------------------------------------------- For 26,813,287.627 66.418% 90.415% Against 1,381,619.269 3.422% 4.659% Abstain 1,460,729.456 3.618% 4.926% - ---------------------------------------------------------------------------------------------------------------------------------
174 UNAUDITED INFORMATION - --------------------------------------------------------------------------------
Columbia High Yield Fund: - -------------------------------------------------------------------------------------------------------------------------------- Proposal 1. Election of Directors: - -------------------------------------------------------------------------------------------------------------------------------- % of Shares to Total % of Shares to Elect J. Jerry Inskeep, Jr. to the Board of Directors: Shares Outstanding Shares Total Shares Voted - -------------------------------------------------------------------------------------------------------------------------------- For 26,761,120.783 56.002% 96.848% Against 870,957.750 1.823% 3.152% Abstain -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Elect James C. George to the Board of Directors: - -------------------------------------------------------------------------------------------------------------------------------- For 26,845,538.545 56.178% 97.154% Against 786,539.988 1.646% 2.846% Abstain -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Elect Patrick J. Simpson to the Board of Directors: - -------------------------------------------------------------------------------------------------------------------------------- For 26,778,576.576 56.038% 96.911% Against 853,501.957 1.786% 3.089% Abstain -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Elect Richard L. Woolworth to the Board of Directors: - -------------------------------------------------------------------------------------------------------------------------------- For 26,804,892.187 56.093% 97.006% Against 827,186.346 1.731% 2.994% Abstain -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Elect Charles R. Nelson to the Board of Directors: - -------------------------------------------------------------------------------------------------------------------------------- For 26,782,629.836 56.047% 96.926% Against 849,448.697 1.778% 3.074% Abstain -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Proposal 2. Amend Articles of Incorporation: - -------------------------------------------------------------------------------------------------------------------------------- To allow the issuance of multiple classes of shares: - -------------------------------------------------------------------------------------------------------------------------------- For 19,738,401.068 41.305% 71.433% Against 2,017,888.449 4.223% 7.303% Abstain 835,485.016 1.748% 21.264% - -------------------------------------------------------------------------------------------------------------------------------- Proposal 3. Update and amend investment restrictions: - -------------------------------------------------------------------------------------------------------------------------------- To modify the investment restriction regarding lending: - -------------------------------------------------------------------------------------------------------------------------------- For 20,022,302.033 41.900% 72.460% Against 1,640,970.077 3.434% 5.939% Abstain 928,502.423 1.943% 21.601% - -------------------------------------------------------------------------------------------------------------------------------- To modify and reclassify the investment restriction regarding investments in restricted and illiquid securities: - -------------------------------------------------------------------------------------------------------------------------------- For 19,804,114.776 41.443% 71.671% Against 1,917,780.828 4.013% 6.940% Abstain 869,878.929 1.820% 21.389% - -------------------------------------------------------------------------------------------------------------------------------- To eliminate the investment restriction regarding the purchase of securities of other investment companies: - -------------------------------------------------------------------------------------------------------------------------------- For 20,000,594.710 41.854% 72.382% Against 1,759,684.685 3.682% 6.368% Abstain 831,495.138 1.740% 21.250% - -------------------------------------------------------------------------------------------------------------------------------- Proposal 4. Ratify the selection of PricewaterhouseCoopers LLP as independent accountant: - -------------------------------------------------------------------------------------------------------------------------------- For 26,307,833.605 55.053% 95.207% Against 560,833.731 1.174% 2.030% Abstain 763,411.197 1.598% 2.763% - --------------------------------------------------------------------------------------------------------------------------------
175 UNAUDITED INFORMATION - --------------------------------------------------------------------------------
Columbia Daily Income Company: - ---------------------------------------------------------------------------------------------------------------------------------- Proposal 1. Election of Directors: - ---------------------------------------------------------------------------------------------------------------------------------- % of Shares to Total % of Shares to Elect J. Jerry Inskeep, Jr. to the Board of Directors: Shares Outstanding Shares Total Shares Voted - ---------------------------------------------------------------------------------------------------------------------------------- For 722,264,769.190 59.286% 94.205% Against 44,430,737.360 3.647% 5.795% Abstain -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- Elect James C. George to the Board of Directors: - ---------------------------------------------------------------------------------------------------------------------------------- For 722,567,233.920 59.310% 94.244% Against 44,128,272.630 3.622% 5.756% Abstain -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- Elect Patrick J. Simpson to the Board of Directors: - ---------------------------------------------------------------------------------------------------------------------------------- For 720,625,072.930 59.151% 93.991% Against 46,070,433.620 3.782% 6.009% Abstain -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- Elect Richard L. Woolworth to the Board of Directors: - ---------------------------------------------------------------------------------------------------------------------------------- For 722,050,233.750 59.268% 94.177% Against 44,645,272.800 3.665% 5.823% Abstain -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- Elect Charles R. Nelson to the Board of Directors: - ---------------------------------------------------------------------------------------------------------------------------------- For 720,684,967.900 59.156% 93.999% Against 46,010,538.650 3.777% 6.001% Abstain -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- Proposal 2. Amend Articles of Incorporation: - ---------------------------------------------------------------------------------------------------------------------------------- To allow the issuance of multiple classes of shares: - ---------------------------------------------------------------------------------------------------------------------------------- For 619,674,107.500 50.865% 80.824% Against 93,581,025.600 7.681% 12.206% Abstain 53,337,081.450 4.378% 6.970% - ---------------------------------------------------------------------------------------------------------------------------------- Proposal 3. Update and amend investment restrictions: - ---------------------------------------------------------------------------------------------------------------------------------- To modify the investment restriction regarding lending: - ---------------------------------------------------------------------------------------------------------------------------------- For 622,864,588.590 51.127% 81.240% Against 87,314,396.850 7.167% 11.388% Abstain 56,413,229.110 4.631% 7.372% - ---------------------------------------------------------------------------------------------------------------------------------- To modify and reclassify the investment restriction regarding investments in restricted and illiquid securities: - ---------------------------------------------------------------------------------------------------------------------------------- For 617,090,177.320 50.653% 80.487% Against 93,267,402.310 7.656% 12.165% Abstain 56,234,634.920 4.616% 7.348% - ---------------------------------------------------------------------------------------------------------------------------------- To eliminate the investment restriction regarding the purchase of securities of other investment companies: - ---------------------------------------------------------------------------------------------------------------------------------- For 624,926,693.150 51.296% 81.509% Against 86,556,522.170 7.105% 11.209% Abstain 55,108,999.230 4.524% 7.282% - ---------------------------------------------------------------------------------------------------------------------------------- To reclassify certain fundamental investment restrictions: - ---------------------------------------------------------------------------------------------------------------------------------- For 618,465,412.570 50.765% 80.666% Against 90,938,405.000 7.464% 11.861% Abstain 57,188,396.980 4.694% 7.473% - ---------------------------------------------------------------------------------------------------------------------------------- Proposal 4. Ratify the selection of PricewaterhouseCoopers LLP as independent accountant: - ---------------------------------------------------------------------------------------------------------------------------------- For 673,791,958.490 55.307% 87.883% Against 40,865,331.240 3.354% 5.330% Abstain 52,038,216.820 4.271% 6.787% - ----------------------------------------------------------------------------------------------------------------------------------
176 This page intentionally left blank. 177 [LOGO] Columbia Funds Advised by Columbia Management Company DIRECTORS - -------------------------------------------------------------------------------- JAMES C. GEORGE J. JERRY INSKEEP, JR. PATRICK J. SIMPSON RICHARD L. WOOLWORTH CHARLES R. NELSON INVESTMENT ADVISOR - -------------------------------------------------------------------------------- COLUMBIA MANAGEMENT COMPANY 1300 S.W. SIXTH AVENUE PORTLAND, OREGON 97201 DISTRIBUTOR - -------------------------------------------------------------------------------- LIBERTY FUNDS DISTRIBUTOR, INC. ONE FINANCIAL CENTER BOSTON, MASSACHUSETTS 02111-2621 LEGAL COUNSEL - -------------------------------------------------------------------------------- STOEL RIVES LLP 900 S.W. FIFTH AVENUE, SUITE 2300 PORTLAND, OREGON 97204-1268 TRANSFER AGENT - -------------------------------------------------------------------------------- LIBERTY FUNDS SERVICES, INC. P.O. BOX 8081 BOSTON, MASSACHUSETTS 02266-8081 This information must be preceded or accompanied by a current prospectus. Please read it carefully before investing. The managers' views contained in this report are subject to change at any time, based on market and other considerations. Portfolio changes should not be considered recommendations for action by individual investors. Funds distributed by Liberty Funds Distributor, Inc. Mutual fund shares are not insured by the FDIC or any other governmental entity; are not deposits or other obligations of, or guaranteed by, any bank; and involve risks, including loss of principal. COL-02/473M-0103 (2/03) 03/0438 ------------- PRSRT STD U.S. Postage PAID Holliston, MA Permit NO. 20 ------------- -----END PRIVACY-ENHANCED MESSAGE-----