-----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, UWD60wYYtnOvZyznua8uXIBM9wLPsqqwQOmMK8N4p8kehKKQCFX+kcOa3zEjLN7Q h+rpd0SOCdQHx5blUHeZSA== 0000891804-03-001990.txt : 20030909 0000891804-03-001990.hdr.sgml : 20030909 20030909165631 ACCESSION NUMBER: 0000891804-03-001990 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20030630 FILED AS OF DATE: 20030909 EFFECTIVENESS DATE: 20030909 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-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-04362 FILM NUMBER: 03888445 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-CSR 1 file001.txt COLUMBIA SPECIAL FUND, INC. UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-04362 --------------------- Columbia Special Fund, Inc. ------------------------------------------------------------------------------ (Exact name of registrant as specified in charter) One Financial Center, Boston, Massachusetts 02111 - ------------------------------------------------------------------------------ (Address of principal executive offices) (Zip code) Russell L. Kane, Esq. Columbia Management Group, Inc. One Financial Center Boston, MA 02111 - ------------------------------------------------------------------------------ (Name and address of agent for service) Registrant's telephone number, including area code: 1-617-426-3363 ------------------- Date of fiscal year end: December 31, 2003 ----------------- Date of reporting period: June 30, 2003 ---------------- Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles. A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. ss. 3507. ITEM 1. REPORTS TO STOCKHOLDERS. COLUMBIA FUNDS Semiannual Report June 30, 2003 COLUMBIA COMMON STOCK FUND COLUMBIA GROWTH FUND COLUMBIA INTERNATIONAL STOCK FUND COLUMBIA SPECIAL FUND COLUMBIA SMALL CAP FUND COLUMBIA REAL ESTATE EQUITY FUND COLUMBIA TECHNOLOGY FUND COLUMBIA STRATEGIC VALUE FUND COLUMBIA BALANCED FUND COLUMBIA SHORT TERM BOND FUND COLUMBIA FIXED INCOME SECURITIES FUND COLUMBIA NATIONAL MUNICIPAL BOND FUND COLUMBIA OREGON MUNICIPAL BOND FUND COLUMBIA HIGH YIELD FUND COLUMBIA DAILY INCOME COMPANY [Photo of Women Standing] NOT FDIC MAY LOSE VALUE INSURED NO BANK GUARANTEE TABLE OF CONTENTS - -------------------------------------------------------------------------------- COLUMBIA FUNDS SEMIANNUAL REPORT JUNE 30, 2003 INTRODUCTION 1 TO OUR SHAREHOLDERS --------------------------------------------------------------------- INVESTMENT 4 COLUMBIA COMMON STOCK FUND REVIEWS 6 COLUMBIA GROWTH FUND 8 COLUMBIA INTERNATIONAL STOCK FUND 10 COLUMBIA SPECIAL FUND 12 COLUMBIA SMALL CAP FUND 14 COLUMBIA REAL ESTATE EQUITY FUND 16 COLUMBIA TECHNOLOGY FUND 18 COLUMBIA STRATEGIC VALUE FUND 20 COLUMBIA BALANCED FUND 22 COLUMBIA SHORT TERM BOND FUND 24 COLUMBIA FIXED INCOME SECURITIES FUND 26 COLUMBIA NATIONAL MUNICIPAL BOND FUND 28 COLUMBIA OREGON MUNICIPAL BOND FUND 30 COLUMBIA HIGH YIELD FUND 32 COLUMBIA DAILY INCOME COMPANY --------------------------------------------------------------------- FINANCIAL 33 FINANCIAL HIGHLIGHTS INFORMATION 78 SCHEDULES OF INVESTMENTS 130 STATEMENTS OF ASSETS AND LIABILITIES 134 STATEMENTS OF OPERATIONS 138 STATEMENTS OF CHANGES IN NET ASSETS 142 NOTES TO FINANCIAL STATEMENTS 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 2003 semiannual 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 six months ended June 30, 2003. But first, we'd like to offer an overview of the market and economic climate in which the funds performed. A STRONG OUTCOME DESPITE ECONOMIC WEAKNESS AND WAR Despite the uncertainty that hung over the markets and the economy early in the year as the nation prepared to go to war in Iraq, the six-month period ended on a high note for investors. Virtually all major segments of the stock and bond markets posted gains for the period. The economy, although it is still struggling, has made steady progress toward recovery. Corporate profits have moved higher. Consumer spending has remained strong, although the rate of spending growth has slowed. A new tax law and yet another cut in short-term interest rates are expected to further stimulate an economy that is poised to move higher. Rising unemployment continued to weigh on consumer confidence. Measures of consumer confidence lifted off pre-war lows, then slipped again in June. However, employment is considered a lagging indicator of economic growth. We remain hopeful that once companies demonstrate the ability to generate solid earnings, the jobs picture will brighten. Global markets took their cues from the United States. Early in the period, impending war, the outbreak of SARS and renewed threats of terrorism restrained most major foreign economies. Growth continued among smaller, emerging economies. In May, the euro hit an all time high against the dollar then retreated in the final month of the period. The dollar's slide has made it more difficult for European companies to compete with their US and Asian counterparts in dollar based markets. Japan's economy was stagnant in the first quarter, but showed signs of a modest revival in the second quarter--enough to push the Japanese stock market higher. A STRONG COMEBACK FOR EQUITY MARKETS The US stock market staged a solid advance in the second half of this six-month period. In general, the riskiest investments were the strongest performers. As confidence rebounded after a relatively speedy conclusion to the major military campaigns in Iraq, investors were inspired to consider the attractive valuations that were available from beaten-down technology and telecommunications stocks. Dividend-paying utilities stocks also did well as a result of the new, lower tax on dividend income. 1 TO OUR SHAREHOLDERS - -------------------------------------------------------------------------------- Small-cap stocks led large-cap stocks, reflecting investor expectations that smaller companies would benefit most from a stronger economy. The S&P 500 Index returned 11.75% for the period. By contrast, the Russell 2000 Index, a common measure of smaller companies, gained 17.88%. The Nasdaq, which is heavily weighted toward technology stocks, rose 15.60%. Declining interest rates helped real estate remain strong during the period. The NAREIT Index returned 13.87%. International equity markets rebounded, but lagged the US markets. The MSCI EAFE Index, a measure of stock market performance in major developed countries, returned 9.47%. HIGHER-RISK SECTORS DOMINATE THE BOND MARKET A rally in high-yield and investment-grade corporate bonds, which began in the fourth quarter of 2002, continued throughout the period. Expectations for a second-half economic recovery made investors willing to invest in higher-risk sectors of the market. The Merrill Lynch US High Yield, Cash Pay Index returned 17.24% and the Lehman Brothers Government/Credit Index gained 5.23%. Declining interest rates benefited Treasury and municipal bonds, but their returns lagged for the period. Mortgage bonds were the weakest performers. A flurry of prepayment activity during the period hurt the mortgage sector. Declining short-term interest rates were hard on money market funds, which reported annualized yields below 1.0% for the first time ever. DIVERSIFICATION STILL A SOUND APPROACH For investors, the improved environment serves as an important reminder that diversification is still the easiest way to ensure exposure to a top-performing asset class. Exiting a market when it is declining, then trying to pick a point to come back in when it is rising is a sure way to lose out on both ends. If your portfolio is in need of diversification, talk to your financial advisor about the best way to achieve it--and to keep it on track. CONSOLIDATION UNDER A NEW NAME We are pleased to announce that, effective April 1, 2003, six of the asset management firms brought together when Columbia Management Group, Inc. was formed were consolidated and renamed Columbia Management Advisors, Inc. This consolidation does not affect the management or investment objectives of your fund and is the next step in our efforts to create a consistent identity and to streamline our organization. By consolidating these firms, we are 2 TO OUR SHAREHOLDERS - -------------------------------------------------------------------------------- able to create a more efficient organizational structure and strengthen certain key functions, such as research. Although the name of the asset manager has changed, what hasn't changed is the commitment of our specialized investment teams to a multi-disciplined approach to investing, focused on our goal of offering shareholders the best products and services. 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 3 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- COLUMBIA COMMON STOCK FUND PERFORMANCE OF A $10,000 INVESTMENT 6/30/93 - 6/30/03 WITHOUT WITH SALES CHARGE SALES CHARGE ------------ ------------ Class A $ 21,967 $ 20,700 Class B 21,845 21,845 Class D 21,845 21,632 Class Z 22,024 n/a ----------------------------- GROWTH OF $10,000 OVER 10 YEARS (Mountain Chart) CLASS A SHARES WITHOUT CLASS A SHARES SALES CHARGE WITH SALES CHARGE S&P 500 INDEX - ------------------------- ----------------- ------------- 6/30/93 10000 9425 10000 9987 9413 9960 10434 9834 10337 10506 9902 10258 10619 10008 10470 10454 9853 10371 10692 10077 10496 11034 10399 10853 10831 10208 10559 10418 9819 10100 10572 9964 10229 10775 10156 10396 10417 9818 10141 10833 10210 10474 11171 10529 10902 10896 10270 10636 10953 10323 10874 10684 10069 10478 10910 10283 10633 11004 10371 10909 11457 10798 11333 11694 11022 11668 11824 11144 12011 12207 11505 12490 12388 11676 12780 12860 12120 13203 12976 12230 13236 13425 12653 13794 13235 12474 13744 13832 13037 14346 14273 13453 14623 14542 13706 15121 14764 13915 15261 15071 14205 15408 15279 14401 15634 15594 14697 16036 15694 14792 16097 14961 14101 15385 15570 14675 15710 16180 15250 16593 16234 15300 17051 17333 16336 18338 17227 16236 17975 17799 16775 19097 17968 16935 19248 17706 16688 18459 18200 17153 19559 19259 18151 20754 20048 18896 21677 21480 20245 23401 20851 19652 22090 21741 20491 23299 20919 19716 22520 21243 20022 23563 21596 20354 23968 21723 20474 24232 22949 21629 25979 24036 22654 27309 24056 22672 27588 23584 22228 27113 24980 23544 28214 24696 23276 27915 21026 19817 23881 22117 20845 25412 23457 22109 27476 24926 23492 29141 27271 25703 30819 28523 26883 32107 27807 26208 31109 29272 27589 32353 29732 28022 33605 28938 27274 32812 31019 29235 34627 30067 28338 33550 29519 27822 33382 28970 27305 32467 30694 28929 34522 31790 29962 35223 34298 32326 37294 32991 31094 35422 34321 32347 34753 37856 35679 38152 36671 34562 37003 35105 33087 36245 36685 34576 37136 36245 34161 36557 38488 36275 38827 35605 33558 36777 34477 32494 36623 31722 29898 33737 32334 30475 33902 32945 31051 35106 29371 27682 31907 27497 25916 29888 29636 27932 32207 29770 28058 32423 28960 27295 31635 28389 26757 31325 26450 24929 29367 23914 22539 26997 24366 22965 27513 26278 24767 29623 26646 25114 29884 25927 24436 29447 25393 23933 28879 26246 24737 29965 24485 23077 28149 24512 23102 27944 22671 21367 25954 20576 19393 23932 20790 19595 24088 18601 17531 21472 20136 18978 23359 21471 20236 24733 19993 18844 23281 19538 18414 22673 19149 18048 22333 19256 18149 22550 20785 19590 24406 21737 20487 25689 6/30/03 21967 20700 26018 MUTUAL FUND PERFORMANCE CHANGES OVER TIME. PLEASE VISIT LIBERTYFUNDS.COM FOR DAILY PERFORMANCE UPDATES. Past performance is no guarantee of future 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 June 30, 1993, 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, indices 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 six-month period ended June 30, 2003, Columbia Common Stock Fund class A shares returned 9.86% without sales charge. The fund trailed its benchmark, the S&P 500 Index, which returned 11.75% over the same period. It also fell short of the average return of its peer group, the Lipper Large Cap Core Category, which was 10.42%.1 The fund trailed its benchmark because of its relatively light exposure to technology and utility stocks, which were strong performers during the period. We believe that our technology and utility weights also hurt performance relative to our peer group. Stock selection in the telecommunications, technology, energy and industrial sectors further hampered performance. STOCKS DECLINE IN FIRST QUARTER OF PERIOD, THEN SOAR IN SECOND During the first three months of the period, a weak stock market reflected investor fears about an impending war in Iraq, rising unemployment and generally weak economic growth. The manufacturing sector reported falling sales and higher inventories. During this period, we built up our position in out-of-favor cyclical stocks. Specifically, in consumer cyclicals that are related to travel, we added Carnival, Royal Caribbean Cruises and Hilton Hotels (0.5%, 1.1% and 0.5% of net assets, respectively).2In the retail area, we bought shares of Target and Home Depot (1.6% and 1.5% of net assets, respectively). In the second quarter, investor psychology shifted. The United States declared a swift military victory in Iraq and corporate profits rose, a sign that the economy might finally be on the mend. The prospects of lower tax rates on income and dividends added to the positive mood. Home mortgage and U.S. Treasury rates reached 45-year lows. AVERAGE ANNUAL TOTAL RETURN (%) As of June 30, 2003
CLASS A CLASS B CLASS D CLASS Z - --------------------------------------------------------------------------------------- Inception date 11/1/02 11/1/02 11/1/02 10/1/91 - --------------------------------------------------------------------------------------- WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT SALES SALES SALES SALES SALES SALES SALES CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE - --------------------------------------------------------------------------------------- 6-month (cumulative) 9.86 3.54 9.39 4.39 9.32 7.23 10.06 ------- ------ ------- ------ ------- ------ ------- 1-year -3.12 -8.71 -3.66 -8.46 -3.66 -5.57 -2.87 ------- ------ ------- ------ ------- ------ ------- 5-year -2.55 -3.69 -2.65 -2.94 -2.65 -2.85 -2.50 ------- ------ ------- ------ ------- ------ ------- 10-year 8.19 7.55 8.13 8.13 8.13 8.02 8.22 ------- ------ ------- ------ ------- ------ -------
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 - -------------------------------------------------------------------------------- Refinanced mortgages gave consumers money to pay down debt and make new investments with their improved balance sheets. In this environment, stock prices rose rapidly as the mood shifted from fear to optimism. Shares of lower quality, speculative stocks rose the fastest. Our lack of representation among these issues hurt the fund's performance, but we believe that our strategy of owning higher quality stocks will prove itself over the long term. As the market looked ahead to an improving economy, we took profits in some of our retail stocks. We also sold our stakes in transportation and basic materials companies that consume energy, as energy prices remained stubbornly high. We added money center banks J.P. Morgan Chase and Citigroup (1.7% and 4.1% of net assets, respectively), which we believe have the potential to do well in a strengthening economy. And we continued to cut back on our exposure to the more defensive consumer staples sector, believing there are better opportunities elsewhere. A GENERALLY POSITIVE OUTLOOK We expect the combination of lower tax rates, lower mortgage payments and recent stock market gains to create a positive economic backdrop. This environment should allow for very depressed capital spending to pick up after three years of abysmal growth. To a certain extent, the market has anticipated this improved outlook, which could mean a period of consolidation is forthcoming. If so, we could see prices on speculative stocks give back some of their recent gains. Against this mixed backdrop, we will continue to look for stocks of larger, established companies with management teams that are making sound capital allocation decisions to create shareholder value. SCOTT DRYSDALE, RON GIBBS, GUY POPE AND TRENT NEVILLS 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 may invest in foreign securities, which have special risks, including political or economic instability and higher transaction costs; different regulations, accounting standards, trading practices and levels of information; and currency exchange rate fluctuations.~ TOP TEN HOLDINGS % of net assets June 30, 2003 (unaudited) Citigroup 4.1 Pfizer 4.0 Microsoft 3.5 General Electric 2.5 Bank of America 2.1 American Express 2.0 McDonald's 1.8 Altria Group 1.8 J.P. Morgan Chase 1.7 Johnson & Johnson 1.7 Because the fund is actively managed, there is no guarantee the fund will continue to maintain these holdings in the future. --------------------------------------- TOP FIVE SECTORS % of net assets June 30, 2003 (unaudited) Financials 20.3 Health care 16.7 Consumer discretionary 16.3 Information technology 16.2 Industrials 9.5 Because the fund is actively managed, there is no guarantee the fund will continue to maintain these sectors in the future. - ---------------------- 1 Lipper, Inc., a widely respected data provider in the industry, calulates an average total return for mutual funds with similar investment objectives as the fund. 2 Holdings are disclosed as of June 30, 2003 and are subject to change. 5 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- COLUMBIA GROWTH FUND PERFORMANCE OF A $10,000 INVESTMENT 6/30/93 - 6/30/03 WITHOUT SALES CHARGE WITH SALES CHARGE -------------------- ----------------- Class A $19,416 $18,298 Class B 19,342 19,342 Class D 19,333 19,137 Class G 19,342 19,342 Class Z 19,474 n/a ---------------------- GROWTH OF $10,000 OVER 10 YEARS (Mountain Chart) Class A shares without sales Class A shares Russel 1000 charge with sales charge S&P 500 Index Growth Index - -------------- ---------------------- ------------- ------------ 6/30/93 10000 9425 10000 10000 9934 9363 9821 9960 10432 9832 10225 10337 10575 9967 10149 10258 10772 10153 10431 10470 10510 9905 10361 10371 10823 10200 10539 10496 11167 10525 10784 10853 11113 10474 10587 10559 10453 9852 10075 10100 10560 9953 10122 10229 10592 9983 10275 10396 10194 9608 9971 10141 10625 10014 10312 10474 11031 10397 10887 10902 10764 10145 10740 10636 10966 10335 10992 10874 10605 9995 10639 10478 10754 10136 10818 10633 10780 10160 11050 10909 11304 10654 11513 11333 11711 11038 11849 11668 11875 11192 12108 12011 12143 11445 12530 12490 12602 11878 13013 12780 13100 12347 13555 13203 13329 12563 13569 13236 13680 12893 14195 13794 13330 12563 14205 13744 14162 13347 14758 14346 14302 13479 14842 14623 14451 13620 15337 15121 15112 14243 15618 15261 15060 14194 15638 15408 15558 14663 16050 15634 16009 15089 16610 16036 16004 15084 16633 16097 14806 13954 15658 15385 15309 14429 16062 15710 16205 15273 17232 16593 16491 15543 17335 17051 17497 16491 18637 18338 17275 16282 18272 17975 17882 16853 19552 19097 17898 16869 19419 19248 16987 16010 18369 18459 17829 16804 19589 19559 19043 17948 21003 20754 19836 18695 21843 21677 21595 20353 23774 23401 20802 19606 22383 22090 21628 20385 23484 23299 21083 19871 22615 22520 21667 20421 23577 23563 21819 20564 23841 23968 22404 21115 24553 24232 24050 22667 26400 25979 25188 23740 27453 27309 25263 23811 27832 27588 24655 23237 27042 27113 26523 24998 28697 28214 26136 24633 28507 27915 21834 20579 24228 23881 22649 21346 26089 25412 23919 22544 28187 27476 25495 24029 30332 29141 28445 26810 33067 30819 30237 28499 35009 32107 29233 27553 33409 31109 31008 29225 35169 32353 31067 29281 35215 33605 30290 28549 34134 32812 32586 30712 36523 34627 31449 29641 35362 33550 30587 28828 35938 33382 30018 28292 35184 32467 31699 29877 37840 34522 33224 31314 39883 35223 35849 33787 44031 37294 34626 32635 41966 35422 36590 34486 44018 34753 40468 38141 47170 38152 38817 36585 44925 37003 36368 34277 42660 36245 39593 37317 45894 37136 39380 37115 43980 36557 42554 40107 47961 38827 38830 36598 43423 36777 36528 34427 41370 36623 32195 30344 35272 33737 33000 31103 34157 33902 34871 32866 36517 35106 29313 27627 30317 31907 26118 24616 27018 29888 29388 27698 30436 32207 29073 27402 29989 32423 28440 26804 29293 31635 27219 25654 28561 31325 24873 23443 26224 29367 22179 20904 23607 26997 23430 22083 24846 27513 25883 24395 27234 29623 25938 24446 27183 29884 24872 23442 26701 29447 23556 22202 25593 28879 24458 23052 26479 29965 22414 21125 24318 28149 22149 20875 23730 27944 19941 18794 21535 25954 18021 16984 20350 23932 18294 17242 20411 24088 16425 15480 18295 21472 17806 16782 19972 23359 18600 17531 21057 24733 17235 16244 19602 23281 16854 15885 19125 22673 16755 15791 19037 22333 17028 16049 19392 22550 18335 17281 20825 24406 19228 18123 21864 25689 6/30/03 19416 18298 22165 26018 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 June 30,1993, 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, indices 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. The stock market rebounded in the first half of 2003, as investors became less risk averse and the economic outlook improved. Geopolitical uncertainties eased and first quarter profits beat expectations. Together, these factors helped push the S&P 500 Index to an 11.75% return for the six months ended June 30, 2003. During the same period, the fund's class A shares returned 12.67% without sales charge. This was modestly ahead of the Lipper Large Cap Growth Funds Category average, which returned 12.28%. The Russell 1000 Growth Index returned 13.09%.1 Keep in mind that the index does not incur expenses, which the fund and its peer group must pay. The fund benefited from strong stock selection, particularly in the health care, financial services and technology sectors. Investments in the energy, consumer discretionary and consumer staples sectors detracted slightly from performance. HEALTH CARE AND FINANCIAL SERVICES BOOST RETURNS We invested heavily in health care, focusing on generic pharmaceutical, medical device, and biotechnology companies. All these did well during the period. Top performers included Teva Pharmaceutical Industries (1.1% of net assets), an Israeli-based generic pharmaceutical company that benefited as more branded drugs came off patent and Congress proposed new Medicare benefits. Amgen (2.8% of net assets), a biotechnology company, also rallied as sales exceeded expectations. However, Pfizer (6.5% of net assets), went up less than most drug stocks as prospects for branded pharmaceuticals weakened. Stocks in the financial area, such as Goldman Sachs Group (0.8% of net assets), benefited from increased trading and merger and acquisition activity. Citigroup (3.2% of net assets) also rallied as concerns about the company's legal liabilities dissipated and the outlook for its lending and brokerage businesses improved.2
AVERAGE ANNUAL TOTAL RETURN (%) As of June 30, 2003 CLASS A CLASS B CLASS D CLASS G CLASS Z - ------------------------------------------------------------------------------------------------------------------------------------ INCEPTION 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 - ------------------------------------------------------------------------------------------------------------------------------------ 6-month (cumulative)12.67 6.20 12.30 7.30 12.25 10.14 12.24 7.24 12.90 - ------------------------------------------------------------------------------------------------------------------------------------ 1-year -2.61 -8.21 -2.99 -7.84 -3.03 -4.95 -2.99 -7.84 -2.32 - ------------------------------------------------------------------------------------------------------------------------------------ 5-year -6.05 -7.15 -6.12 -6.41 -6.13 -6.32 -6.12 -6.56 -5.99 - ------------------------------------------------------------------------------------------------------------------------------------ 10-year 6.86 6.23 6.82 6.82 6.81 6.71 6.82 6.82 6.89 - ------------------------------------------------------------------------------------------------------------------------------------
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 - -------------------------------------------------------------------------------- SHIFT TO MORE CYCLICAL STOCKS ALSO HELPS The fund began the year diversified across sectors with roughly equal mixes of stable growth stocks and cyclical (or economically-sensitive) stocks. When military success in Iraq began to look likely, we started to increase our exposure to cyclical stocks and reduce the fund's stake in more stable growth companies. By period end, cyclical stocks had reached about two-thirds of assets. Some of our biggest additions and strongest gains came from the technology sector, where orders increased modestly after declining for several years. Within technology, we focused on stocks that we expect to benefit from the rapid deployment of broadband. As cable companies and regional carriers raced to sign up new households, telecommunications equipment and components companies, including both PMC-Sierra and Cisco Systems benefited (1.0% and 2.7% of net assets, respectively). Internet service companies also did well as usage increased. We added a new position in InterActive Corp, while increasing our investment in eBay (0.8% and 0.8% of net assets, respectively). We also targeted companies that benefit as the wireless Internet, known as WiFi, expands to public places. In this regard, we invested in Marvell Technology Group (0.9% of net assets), a semiconductor company. OUR OUTLOOK FOR STOCKS AND ECONOMIC RECOVERY IS CONSTRUCTIVE We believe the economic and profit recovery will be better than expected. In the early phases of a recovery, companies typically repair their balance sheets--a process that has been underway for some time now. Next, they start generating cash, which is also well underway. Now, we think that we're on the brink of the final phase of recovery. This phase is exemplified by companies aiming to increase revenues which will require increased investments in capital and human resources. Our plan is to maintain the fund's cyclical bias with a focus on high quality companies that have good competitive positions and strong prospects for growth in an improving environment. 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 may invest in foreign securities, which have special risks, including political or economic instability and higher transaction costs; different regulations, accounting standards, trading practices and levels of information; and currency exchange rate fluctuations. TOP TEN HOLDINGS % of net assets June 30, 2003 (unaudited) Pfizer 6.5 Microsoft 4.7 General Electric 3.4 Citigroup 3.2 Amgen 2.8 Cisco Systems 2.7 Johnson & Johnson 2.7 Wal-Mart Stores 2.5 Dell Computer 2.0 PepsiCo 2.0 Because the fund is actively managed, there is no guarantee the fund will continue to maintain these holdings in the future. ---------------------- TOP FIVE SECTORS % of net assets June 30, 2003 (unaudited) Information technology 27.8 Health care 25.4 Consumer discretionary 15.4 Consumer staples 11.1 Financials 7.6 Because the fund is actively managed, there is 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 June 30, 2003 and are subject to change. 7 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- COLUMBIA INTERNATIONAL STOCK FUND PERFORMANCE OF A $10,000 INVESTMENT 6/30/93 - 6/30/03 WITHOUT WITH SALES CHARGE SALES CHARGE ------------ ------------ Class A $ 16,669 $ 15,717 Class B 16,546 16,546 Class D 16,592 16,424 Class Z 16,747 n/a ---------------------- GROWTH OF $10,000 OVER 10 YEARS (Mountain Chart) CLASS A SHARES CLASS A SHARES MSCI ALL COUNTRY WITHOUT WITH WORLD MSCI EAFE SALES CHARGE SALES CHARGE FREE EX US INDEX INDEX - --------------- --------------- ---------------- --------- 6/30/93 10000 9425 10000 10000 10457 9856 10333 10350 10951 10321 10888 10909 10885 10259 10664 10663 11361 10707 11050 10992 10988 10356 10208 10031 12367 11656 11004 10755 13016 12268 11908 11664 12902 12160 11818 11632 12320 11611 11277 11130 12644 11917 11659 11602 12529 11808 11662 11536 12586 11863 11745 11699 12634 11908 11937 11811 13007 12259 12338 12091 12569 11846 12032 11710 12959 12214 12355 12100 12292 11585 11760 11518 12063 11370 11733 11591 11142 10501 11200 11146 10948 10318 11140 11113 11365 10711 11769 11807 11617 10949 12228 12251 11481 10821 12173 12105 11433 10776 12005 11893 12190 11489 12686 12634 11986 11297 12245 12153 12278 11572 12455 12390 12141 11443 12122 12056 12384 11672 12407 12391 12685 11956 12899 12891 12850 12111 13075 12944 12850 12111 13075 12988 13326 12559 13320 13263 13831 13035 13723 13649 14053 13245 13517 13398 14306 13484 13586 13473 13568 12788 13135 13079 13781 12989 13212 13108 14131 13319 13539 13457 14053 13245 13404 13320 14597 13758 13921 13850 14790 13939 13760 13671 14780 13930 13507 13193 15196 14323 13754 13409 15345 14463 13725 13457 15707 14804 13840 13529 16614 15658 14695 14409 17403 16402 15507 15203 17925 16894 15820 15450 16538 15587 14575 14295 17669 16653 15363 15096 16443 15497 14056 13935 16369 15427 13880 13793 16486 15538 14040 13913 16618 15663 14460 14549 17293 16299 15424 15483 17883 16854 15958 15960 18328 17274 16073 16086 18581 17512 15782 16007 18640 17569 15722 16129 18748 17670 15871 16291 16197 15265 13633 14273 15343 14461 13346 13835 16583 15629 14743 15276 17739 16719 15535 16059 18603 17533 16071 16691 19168 18066 16053 16641 18699 17623 15693 16245 19181 18078 16451 16923 19772 18635 17274 17608 19074 17977 16462 16701 20048 18896 17219 17352 20866 19667 17624 17868 21323 20097 17686 17934 21769 20517 17806 18115 22949 21629 18468 18794 25838 24353 19207 19447 29378 27689 21039 21193 27974 26365 19897 19847 29829 28113 20434 20381 29339 27652 21202 21172 26904 25357 20019 20058 24819 23392 19507 19569 25849 24363 20338 20334 24665 23247 19534 19482 25413 23951 19777 19651 23842 22471 18679 18694 22774 21464 18085 18253 21745 20494 17273 17569 22730 21423 17862 18192 22607 21307 18130 18183 21391 20161 16694 16819 19912 18768 15514 15698 21143 19927 16569 16789 20820 19622 16111 16196 20143 18985 15493 15534 19482 18362 15149 15251 19112 18013 14773 14865 17220 16230 13206 13359 17697 16679 13575 13701 18113 17071 14196 14207 18531 17466 14379 14291 17714 16696 13764 13532 17838 16812 13863 13626 18669 17596 14674 14429 18763 17684 14710 14458 18948 17859 14871 14642 18441 17380 14228 14059 16855 15886 12841 12671 16701 15741 12842 12642 14991 14129 11481 11284 15535 14642 12096 11890 16031 15109 12678 12430 15552 14657 12269 12012 14855 14001 11838 11511 14638 13796 11598 11248 14530 13694 11373 11027 15535 14642 12469 12108 16386 15444 13263 12842 6/30/03 16669 15717 13631 13153 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 June 30, 1993, 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. The MSCI AC World Free Ex US Index is also an unmanaged Index representing both developed and emerging markets of 49 countries, excluding the U.S. Unlike the fund, indices 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 six-month period ended June 30, 2003, Columbia International Stock Fund class A shares returned 7.26% without sales charge. The fund trailed the MSCI All Country World Free ex US Index, which returned 11.10% during the same period. We chose this index as the fund's new benchmark because it includes emerging markets, such as China, and other countries, such as Canada and Mexico, in which the fund invests. By contrast, the fund's former benchmark, the MSCI EAFE Index, only covers Europe, Australasia, and the major Far East markets. The MSCI EAFE Index returned 9.47% for the six-month period. Two factors were mainly responsible for the fund's underperformance relative to these benchmarks. First, the fund had a relatively small position in lower quality companies--particularly banks in Japan and insurance companies in Europe--which rallied strongly toward the end of the six months. Second, at the beginning of the period, the fund had investments in Asian markets, exclusive of Japan, that were severely hurt by the SARS (severe acute respiratory syndrome) epidemic. SARS had a dramatic impact on economic activity and the travel and tourism industries in Asia. A WEAK BEGINNING BUT A STRONG ENDING At the beginning of the period, uncertainty about the war in Iraq, SARS and the global economic slowdown took their toll on the international stock markets. However, once the war officially ended and SARS appeared under control, investor sentiment became more positive, and market participants began focusing on the potential for better economic growth later in 2003. As a result, company valuations rebounded from very low levels. At the end of the six months, many international markets had risen significantly. While European markets generated strong gains, Asian markets--especially Japan--were the global leaders. AVERAGE ANNUAL TOTAL RETURN (%) As of June 30, 2003
A B D Z - ---------------------------------------------------------------------------------------------------------- INCEPTION 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 - ---------------------------------------------------------------------------------------------------------- 6-month (cumulative) 7.26 1.10 6.79 1.79 7.09 5.04 7.76 - ---------------------------------------------------------------------------------------------------------- 1-year -9.56 -14.76 -10.23 -14.70 -9.98 -11.76 -9.14 - ---------------------------------------------------------------------------------------------------------- 5-year -2.21 -3.36 -2.35 -2.66 -2.30 -2.50 -2.12 - ---------------------------------------------------------------------------------------------------------- 10-year 5.24 4.63 5.16 5.16 5.19 5.09 5.29 - ----------------------------------------------------------------------------------------------------------
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 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 - -------------------------------------------------------------------------------- INVESTORS GRAVITATED TOWARD OUT-OF-FAVOR COMPANIES In managing the fund, we focused on high-quality companies in the pharmaceutical, food, utility and retail sectors. These companies produced relatively strong gains for several months. However, during the market upturn that began in April many market participants sold some of the best performing stocks and began investing in out-of-favor companies that were selling at depressed prices. Consequently, some of the portfolio holdings that had significantly contributed to performance in the past year and which continued to have good prospects for growth held back the fund's results. For example, Unilever, the world's largest household products company, fell 18% (0.9% of net assets).1 Regionally, 56% of the fund's assets were in Europe, 18% in Japan and 15% in emerging markets. In the emerging markets, we made the largest commitment to Thailand (4.6% of net assets), which is benefiting from a strong economic recovery, solid political leadership and increased consumer spending following a sharp decline in interest rates. GENERIC PHARMACEUTICALS WERE A PORTFOLIO THEME Capitalizing on the global emphasis to reduce health care costs, we had a large stake in generic pharmaceutical companies, including Ranbaxy Laboratories in India; Teva Pharmaceutical in Israel; Sawai Pharmaceutical in Japan; and Stada Arzneimittel in Germany (0.6%, 1.3%, 0.5% and 0.2% of net assets, respectively). These companies made a positive contribution to the fund's performance during the period. LOOKING FORWARD TO A GLOBAL ECONOMIC RECOVERY Recently the Paris-based Organization for Economic Cooperation and Development (OECD) forecasted an upturn in industrial production over the next six months. In one of its latest publications, the OECD stated that its leading economic indicators for nearly all major countries stabilized in April, started to improve in May and had a sharp improvement in June. We believe these indicators are a precursor to more positive economic news in the coming months. We think the fund is well positioned to take advantage of the better economic environment. 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 may invest in foreign securities, which have special risks, including political or economic instability and higher transaction costs; different regulations, accounting standards, trading practices and levels of information; and currency exchange rate fluctuations. TOP TEN HOLDINGS % of net assets June 30, 2003 (unaudited) Vodafone Group 2.9 Telefonica 1.8 Royal Bank of Scotland 1.7 Standard Chartered 1.6 ENI 1.5 Siam Cement 1.5 Taiwan Semiconductor Manufacturing 1.4 UniCredito Italiano 1.4 Credit Suisse Group 1.3 Pearson 1.3 Because the fund is actively managed, there is no guarantee the fund will continue to maintain these holdings in the future. TOP FIVE COUNTRIES % of net assets June 30, 2003 (unaudited) United Kingdom 24.8 Japan 17.6 United States 7.2 France 7.2 Spain 5.9 Because the fund is actively managed, there is no guarantee the fund will continue to maintain these country weightings in the future. - ---------------------- 1 Holdings are disclosed as of June 30, 2003 and are subject to change. 9 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- COLUMBIA SPECIAL FUND PERFORMANCE OF A $10,000 INVESTMENT 6/30/93 - 6/30/03 WITHOUT SALES CHARGE WITH SALES CHARGE -------------------- ----------------- Class A $ 23,254 $ 21,920 Class B 23,157 23,157 Class D 23,144 22,907 Class G 23,144 23,144 Class T 23,295 21,959 Class Z 23,337 n/a ---------------------------------- GROWTH OF $10,000 OVER 10 YEARS (Mountain Chart) Class A shares Class A Shares Russell Russell without with MidCap MidCap sales charge sales charge Index Growth Index -------------- -------------- -------- ------------ 6/30/93 9425.00 10000.00 10000.00 10000.00 9568.26 10048.00 10152.00 9968.00 10085.90 10495.10 10701.20 10547.10 10211.00 10535.00 10833.90 10673.70 10216.10 10543.40 10839.30 10845.60 9947.39 10298.80 10554.30 10592.90 10574.10 10671.70 11219.20 11017.60 11002.30 10966.20 11673.60 11300.80 11039.70 10817.10 11713.20 11203.60 10616.90 10356.20 11264.60 10675.90 10681.70 10427.70 11333.30 10650.30 10573.80 10442.30 11218.90 10666.30 10199.50 10133.20 10821.70 10207.60 10389.20 10480.80 11023.00 10490.40 10844.20 10977.60 11505.80 11115.60 10817.10 10709.70 11477.10 10932.20 11094.00 10791.10 11770.90 11121.30 10611.50 10315.20 11258.80 10630.90 10815.20 10449.30 11475.00 10779.70 10704.90 10663.50 11358.00 10909.00 11075.30 11215.90 11750.90 11489.40 11369.90 11536.70 12063.50 11945.50 11405.10 11710.90 12100.90 12045.90 11538.60 12096.20 12242.50 12342.20 12273.60 12502.60 13022.30 12903.80 13205.10 13110.20 14010.70 13715.40 13425.60 13310.80 14244.70 13866.30 13639.10 13611.60 14471.20 14175.50 13071.70 13306.70 13869.20 13816.90 13777.60 13968.10 14618.10 14434.50 14007.70 14049.10 14862.30 14441.70 13902.60 14345.50 14750.80 14697.30 14522.70 14682.70 15408.70 15252.90 14875.60 14895.60 15783.10 15373.40 16175.70 15317.10 17162.60 16115.90 16633.50 15548.40 17648.30 16444.70 15680.40 15315.20 16637.00 15948.00 14145.30 14367.10 15008.30 14710.50 15008.10 15051.00 15923.80 15506.30 15589.00 15794.50 16540.00 16491.00 15150.90 15920.90 16075.20 16298.00 15993.30 16890.50 16969.00 17258.00 15838.20 16718.20 16804.40 16968.00 16213.50 17343.50 17202.70 17718.00 15959.00 17317.40 16932.60 17328.20 15185.00 16581.50 16111.40 16349.20 15072.60 16994.30 15992.10 16749.70 16484.90 18234.90 17490.60 18250.50 17019.00 18831.20 18057.30 18756.10 17977.20 20401.70 19073.90 20551.00 17921.50 20179.30 19014.80 20349.60 18790.60 21331.60 19937.00 21379.30 17697.00 20501.80 18776.70 20308.20 17881.10 20989.70 18972.00 20521.40 17841.70 21569.00 18930.20 20790.30 17365.40 21163.50 18424.80 20416.00 18475.00 22818.50 19602.10 22335.10 19646.30 23900.10 20844.90 23271.00 19585.40 23959.90 20780.30 23587.50 19074.20 23219.50 20237.90 22618.00 19383.20 23542.30 20565.80 23258.10 18061.30 22419.30 19163.20 22262.70 15798.20 18832.20 16762.00 18012.70 16899.40 20050.70 17930.40 19374.50 17604.10 21418.10 18678.10 20800.50 18413.90 22431.20 19537.20 22204.50 20811.30 23745.70 22081.00 24504.90 20388.90 23705.30 21632.70 25240.00 18706.80 22915.90 19848.00 24005.80 19236.20 23633.20 20409.70 25342.90 19861.40 25379.70 21073.10 26498.50 19915.00 25306.10 21130.00 26156.70 21307.00 26199.40 22606.90 27982.40 20750.90 25478.90 22016.90 27092.60 20362.90 24819.00 21605.20 26810.80 20643.90 23945.40 21903.30 26582.90 21886.70 25080.40 23221.90 28637.80 24591.80 25802.70 26092.10 31604.70 28371.60 28073.30 30102.50 37078.60 28853.90 27144.10 30614.30 37071.20 37083.10 29231.50 39345.40 44863.60 36486.00 30906.40 38712.00 44908.40 32921.40 29444.60 34929.80 40547.80 31120.60 28664.30 33019.20 37591.90 34571.80 29512.70 36681.00 41580.40 33206.20 29182.20 35232.10 38948.30 37851.80 31977.90 40161.10 44821.70 37056.90 31520.60 39317.70 42630.00 34470.30 31035.20 36573.30 39714.10 29475.60 28242.00 31273.80 31084.20 32302.30 30391.20 34273.00 32722.30 31743.50 30880.50 33680.10 34590.80 28175.50 28999.90 29894.40 28606.60 25752.40 27201.90 27323.50 24513.00 28214.30 29527.70 29935.60 28599.30 27754.40 30076.90 29447.70 28464.90 27243.80 29794.10 28905.80 28479.10 26249.40 28942.00 27850.80 26559.60 24758.40 27827.80 26268.90 24634.00 21960.70 24471.70 23300.50 20562.00 22755.70 25440.80 24144.00 22723.10 24619.40 27572.80 26121.30 25170.40 25522.90 28681.20 27080.00 26126.90 24662.80 28509.10 26167.40 25277.70 23555.40 28206.90 24992.50 23844.50 24947.50 29899.30 26469.50 25663.80 24308.90 29319.30 25791.90 24306.20 23917.50 28988.00 25376.70 23581.90 22264.80 27045.80 23623.10 20978.40 20559.30 24406.10 21813.60 18939.30 20078.20 24540.30 21303.20 18873.10 19192.80 22275.30 20363.70 17374.50 19726.30 23400.20 20929.80 18721.10 20286.60 25024.10 21524.20 20186.90 19231.70 24038.20 20405.00 18967.60 19231.70 23552.60 20405.00 18781.70 18789.30 23241.70 19935.60 18618.30 18905.80 23471.80 20059.20 18964.60 19856.80 25175.90 21068.20 20256.10 21562.50 27479.50 22878.00 22204.80 6/30/03 21920.00 27757.00 23254.00 22521.00 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 June 30, 1993, 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, indices are not investments, do not incur fees, and are not professionally managed. It is not possible to invest directly in an index. Securities in this fund may not match those in an index. For the six-month period ended June 30, 2003, Columbia Special Fund class A shares returned 13.95% without sales charge. The fund trailed the Russell MidCap Growth Index, which returned 18.74%, and the Russell MidCap Index, which returned 15.47% during the same period. The fund also came out behind its peer group, the Lipper MidCap Growth Funds Category average, which was 15.80%.1 In the first quarter, our overweighting of the consumer discretionary sector had a negative impact on performance. In the second quarter, the fund missed out on the strong gains delivered by speculative technology issues that had been beaten down in the bear market. The fund's investment in energy stocks also hurt performance, as the sector trailed the market. All these factors caused the fund to fall behind its benchmark and peer group. EQUITY MARKETS STRENGTHEN Early in 2003, the stock market made little headway as uncertainty dominated the economy and geopolitical climate. In the second quarter, however, the equity markets exhibited renewed vigor. This recovery was fueled by a relatively quick end to the major military campaigns in Iraq, extremely strong monetary and fiscal stimulus, and anticipation of a stronger economy and improved corporate operating profits in the second half of 2003 and in 2004. CONSUMER DISCRETIONARY STOCKS WEAKEN In the first quarter, we were disappointed by the performance of retailers Williams-Sonoma and Dollar Tree Stores, as well as Westwood One, a television and radio programming service provider (1.9%, 0.5% and 0.5% of net assets, respectively).2 These stocks were weighed down by concerns of a potential double dip in the economy, but rebounded nicely in the second quarter as the economic outlook improved. In the industrial sector, Concord EFS, a company that specializes in the processing and settlement of credit and debit card transactions, also delivered disappointing results. The company had to restate earnings lower due to overly aggressive revenue recognition in past periods. We had purchased the stock as a potential recovery plan, but sold it at a loss as the company's problems were deeper than we anticipated. HEALTH CARE AND TECHNOLOGY POSITIONS WERE GOOD PERFORMERS Strong stock selection and an overweighting in health care contributed positively to performance during the period. Among the portfolio's best
AVERAGE ANNUAL TOTAL RETURN (%) AS OF JUNE 30, 2003 CLASS A CLASS B CLASS D - -------------------------------------------------------------------------------------------------- INCEPTION 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 - -------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------- 6-month (cumulative) 13.95 7.40 13.55 8.55 13.48 11.36 - -------------------------------------------------------------------------------------------------- 1-year -1.58 -7.22 -1.99 -6.89 -2.05 -3.98 - -------------------------------------------------------------------------------------------------- 5-year 2.49 1.28 2.40 2.12 2.39 2.18 - -------------------------------------------------------------------------------------------------- 10-year 8.81 8.16 8.76 8.76 8.75 8.64 - --------------------------------------------------------------------------------------------------
CLASS G CLASS T CLASS Z - ------------------------------------------------------------------------------- INCEPTION 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 - ------------------------------------------------------------------------------- 6-month (cumulative) 13.41 8.41 14.00 7.46 14.20 - ------------------------------------------------------------------------------- 1-year -2.05 -6.94 -1.40 -7.06 -1.23 - ------------------------------------------------------------------------------- 5-year 2.39 1.97 2.52 1.32 2.56 - ------------------------------------------------------------------------------- 10-year 8.75 8.75 8.82 8.18 8.84 - ------------------------------------------------------------------------------- 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 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 - -------------------------------------------------------------------------------- performers were Caremark Rx, a pharmacy benefits manager, as well as Barr Laboratories, a generic drug company, and Gilead Sciences, a biotechnology company (4.2%, 2.3% and 0.8% of net assets, respectively). We believe that both generic drug and biotech companies have the potential to generate attractive earnings as more branded drugs come off patent and as legislators work to expand Medicare prescription benefits. We sold HCA, a leading hospital operator, due to slowing admissions and reimbursement reductions from Medicare. Our emphasis on high-quality technology companies with established earnings, in an environment that favored lower quality names, and our slight underweight in the sector, detracted from the fund's relative performance in the second quarter. However, the fund's intensive bottom-up, research process helped us identify companies with reasonable valuations and above-average earnings growth. Applications software providers, such as Amdocs and VERITAS Software (1.8% and 1.4% of net assets, respectively), were solid performers. We increased our exposure to several existing technology holdings and added positions in UTStarcom, a communications equipment company and Marvell Technology, a semiconductor firm (1.2% and 1.0% of net assets, respectively). However, we eliminated our position in Networks Associates, a software security company best known for its McAfee anti-virus programs, when it unexpectedly reported disappointing earnings due to increasing competition. While the business prospects for the technology industry are improving, valuations have become stretched, which means continued outperformance will require strongly accelerating earnings growth. We remain biased towards companies with established earnings that are less dependent on a strong snapback in demand. Early in the period, the fund benefited from an overweight in the energy sector including Apache, Valero Energy and BJ Services (1.5%, 1.1% and 1.8% of net assets, respectively). During the second half of the period, however, these companies trailed the broader market. This happened as investors moved into more economically sensitive areas and anticipated lower natural gas prices during the summer, when demand is seasonally lower and injections into underground storage increase inventories. We remain committed to our overweight in the energy sector, where our focus is on natural gas oriented companies. We believe the longer term outlook favors consistently higher commodity prices and increased drilling activity POSITIVE OUTLOOK FOR EQUITIES Our long-term outlook for stocks remains positive. We are optimistic that current fiscal stimulus will help fuel continued economic improvement and lead to a more lasting market recovery. Though many lower quality companies with little or no earnings have bounced strongly off their bottoms in the recent market rally, we remain focused on companies that demonstrate the ability to generate above-average earnings and cash flow over the long term. The result is a carefully constructed portfolio of growth stocks highly diversified across market sectors. 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 may invest in foreign securities, which have special risks, including political or economic instability and higher transaction costs; different regulations, accounting standards, trading practices and levels of information; and currency exchange rate fluctuations. TOP TEN HOLDINGS % of net assets June 30, 2003 (unaudited) Caremark Rx 4.2 WellPoint Health Networks 2.9 Barr Laboratories 2.3 AmerisourceBergen 2.2 Electronic Arts 1.9 Williams-Sonoma 1.9 BJ Services 1.8 UnitedHealth Group 1.8 Amdocs 1.8 Microchip Technology 1.8 Because the fund is actively managed, there is no guarantee the fund will continue to maintain these holdings in the future. ------------------------ TOP FIVE SECTORS % of net assets June 30, 2003 (unaudited) Health care 27.2 Information technology 24.4 Consumer discretionary 17.3 Industrials 11.5 Energy 9.4 Because the fund is actively managed, there is 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 June 30, 2003 and are subject to change. 11 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- COLUMBIA SMALL CAP FUND PERFORMANCE OF A $10,000 INVESTMENT 10/1/96 - 6/30/03 without sales charge ------------- Class Z $19,423 ------------------------ GROWTH OF $10,000 SINCE INCEPTION (Mountain Chart) CLASS Z RUSSEL 2000 RUSSEL 2000 SHARES INDEX GROWTH INDEX ------- ---------- ------------ 10/1/96 10000 10000 10000 10174 9846 9569 10488 10252 9835 10762 10520 10027 11508 10731 10277 10820 10471 9657 10224 9977 8975 10191 10005 8871 11475 11117 10204 12245 11594 10550 13098 12133 11090 13753 12411 11423 15021 13320 12334 14449 12735 11593 14201 12652 11317 14432 12874 11324 13817 12670 11173 14953 13606 12160 16261 14167 12670 16435 14245 12747 15247 13477 11820 15715 13505 11941 14978 12411 10944 11771 10001 8418 12854 10784 9271 12984 11224 9755 13720 11812 10512 15109 12544 11464 15030 12710 11980 13452 11681 10884 13678 11863 11271 14077 12926 12266 14381 13115 12286 15682 13708 12933 16089 13332 12534 15726 12839 12065 16002 12841 12298 17555 12894 12613 19965 13664 13946 24048 15210 16404 24250 14966 16252 30795 17436 20034 29560 16287 17928 26350 15307 16117 24885 14414 14705 28386 15671 16605 26206 15167 15182 29285 16324 16779 28067 15844 15946 26663 15137 14651 23453 13583 11990 25451 14750 12724 25767 15518 13753 22982 14500 11868 20994 13791 10789 23433 14869 12110 23600 15235 12390 23984 15761 12729 22785 14908 11643 21092 14427 10915 17835 12485 9154 19105 13215 10034 20452 14238 10872 21839 15116 11549 21249 14959 11138 20197 14549 10418 21535 15719 11323 20856 15862 11078 20089 15158 10430 18741 14406 9546 16203 12231 8079 16459 12200 8074 15751 11324 7491 16027 11688 7871 16942 12730 8651 16038 12021 8054 15988 11688 7835 15742 11335 7625 16056 11481 7741 17346 12570 8473 18950 13919 9428 6/30/03 19423 14171 9610 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, indices 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 six-month period ended June 30, 2003, Columbia Small Cap Fund class Z shares returned 21.10% without sales charge. This return was higher than the Russell 2000 Growth Index, which returned 19.33% during the same period, and the Lipper Small-Cap Growth Funds Category average, which posted a return of 17.22%.1 The fund also performed better than 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 17.88%. The fund's performance was driven largely by strong stock selection in health care and information technology. SMALL-CAP STOCKS POST STRONG GAINS During the first half of the semiannual period, volatility continued to dominate the markets, further eroding investor confidence. A swift end to the major military campaign in Iraq, higher-than-expected corporate profits, improved revenue growth, and significant fiscal and monetary stimulus, however, helped fuel strong performance in the second quarter. As investor optimism increased, small-cap growth stocks benefited. Some of the fund's strongest gains came from the health care sector, where top performers included Caremark Rx and Mid Atlantic Medical Services (2.1% and 1.6% of net assets).2 In the technology sector, Amdocs and Macromedia (1.2% and 1.4% of net assets) were also strong performers. However, the fund experienced disappointing returns from other technology holdings including webMethods (0.6% of net assets) and Acxiom, which we eliminated from the portfolio during the period. The fund's relative underweighing in technology, particularly lower quality companies with volatile or no earnings history, benefited performance in the first quarter. This same position, however, hurt in the second quarter, as lower quality technology stocks bounced hard in the post-war market rally. We stayed with our bottom-up approach that emphasizes high quality stocks, believing that over the long term these types of stocks will generate the most attractive returns. AVERAGE ANNUAL TOTAL RETURN (%) As of June 30, 2003 CLASS Z - --------------------------------------- Public offering date 10/1/96 - --------------------------------------- WITHOUT SALES CHARGE - --------------------------------------- 6-month (cumulative) 21.10 1-year 3.62 5-year 4.33 Life 10.34 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 - -------------------------------------------------------------------------------- ENERGY AND CONSUMER DISCRETIONARY STOCKS MOVE OUT OF FAVOR In the first half of the semiannual period, the fund also benefited from a significant overweighting in energy, aided by strong performance from Premcor (1.1% of net assets). This trend reversed during the last three months of the period, as energy holdings, which typically do not fare as well in the summer, delivered weaker-than-expected returns. Though strong stock selection in the consumer discretionary sector benefited fund performance, several holdings delivered unfavorable returns including Michaels Stores, Lamar Advertising and Entravision Communications (0.9%, 0.9% and 0.7% of net assets, respectively). MARKET POISED FOR FURTHER GAINS AS ECONOMY RECOVERS The fund's positioning reflects our outlook for continued strengthening in the equity markets. We plan to maintain an overweight in the health care sector, where we expect earnings growth to remain positive. We also believe that select technology stocks will be direct beneficiaries of an economic recovery. While valuations remain generally high, extensive analysis helps us select companies with reasonable prices and strong growth prospects. New technology additions during the period included Ultratech, Pixelworks and Credence Systems (0.8%, 0.2% and 0.8% of net assets, respectively). We believe that consumer discretionary stocks will also fare well in an improving economy, but will likely not do as well as more economically-sensitive stocks. As a result, we have trimmed our exposure. We are optimistic that the economy is primed for a recovery later this year. Though lower quality companies generated the highest gains recently, we are confident that our time-tested approach, which selects stocks with visible and improving earnings, will perform well over the long term. The result is a highly diversified portfolio of small-cap growth stocks with above-average growth potential. 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 may invest in foreign securities, which have special risks, including political or economic instability and higher transaction costs; different regulations, accounting standards, trading practices and levels of information; and currency exchange rate fluctuations. TOP FIVE SECTORS % of net assets June 30, 2003 (unaudited) Information technology 28.7 Health care 21.9 Consumer discretionary 18.0 Industrials 13.0 Energy 10.6 Because the fund is actively managed, there is no guarantee the fund will continue to maintain these sectors in the future. --------------------------------- TOP TEN HOLDINGS % of net assets June 30, 2003 (unaudited) Amphenol 2.8 Caremark Rx 2.1 Education Management 2.0 First Health Group 1.8 Harman International 1.6 Mid Atlantic Medical Services 1.6 DaVita 1.6 Entercom Communications 1.5 Henry Schein 1.5 Macromedia 1.4 Because the fund is actively managed, there is no guarantee the fund will continue to maintain these holdings 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 June 30, 2003 and are subject to change. 13 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- COLUMBIA REAL ESTATE EQUITY FUND PERFORMANCE OF A $10,000 INVESTMENT 4/1/94 - 6/30/03 WITHOUT SALES CHARGE WITH SALES CHARGE -------------------- ----------------- Class A $ 27,421 $ 25,850 Class B 27,309 27,309 Class D 27,313 27,043 Class Z 27,537 n/a ---------------------------- GROWTH OF $10,000 SINCE INCEPTION (Mountain Chart) CLASS A SHARES CLASS A WITHOUT WITH SHARES NAREIT SALES CHARGE SALES CHARGE INDEX - ---------------- ------------------ ------- 4/1/94 10000 9425 10000 10017 9441 10170 10326 9732 10397 10135 9552 10185 9966 9393 10135 10118 9536 10165 9908 9339 9976 9610 9057 9630 9253 8721 9299 10177 9592 9977 9803 9240 9760 9899 9329 10001 9968 9395 9961 9818 9254 9958 10303 9711 10381 10562 9955 10546 10724 10107 10728 10795 10175 10856 11065 10429 11042 10820 10197 10806 10910 10283 10904 11894 11210 11500 12118 11422 11689 12221 11519 11826 12147 11448 11761 12137 11439 11821 12413 11699 12126 12707 11976 12284 12726 11994 12376 13342 12575 12863 13901 13101 13087 14173 13358 13476 14903 14046 14090 16449 15503 15554 16774 15810 15728 16877 15906 15697 17108 16124 15664 16523 15573 15233 17046 16066 15681 17819 16794 16443 18752 17674 16951 18565 17497 16911 20225 19062 18387 19533 18410 17891 20025 18874 18277 20518 19338 18708 20442 19266 18609 20060 18906 18293 20736 19543 18620 19836 18695 18013 19681 18549 17887 19626 18497 17766 18470 17408 16613 17114 16130 15044 18002 16967 15896 17698 16680 15602 18057 17019 15831 17983 16949 15432 17663 16648 15110 17538 16529 14755 17434 16432 14688 18876 17791 16082 19442 18325 16436 19003 17910 16170 18302 17250 15655 18291 17239 15457 17473 16469 14869 17119 16134 14503 16977 16000 14267 17540 16532 14719 17612 16599 14768 17179 16191 14592 18070 17031 15072 19155 18053 16085 19314 18203 16243 20032 18880 16660 21757 20506 18116 20895 19694 17381 21758 20507 17933 20723 19531 17157 21334 20107 17377 22601 21301 18600 22386 21099 18793 22071 20802 18493 21691 20444 18672 22457 21166 19118 22942 21623 19581 23938 22561 20728 23514 22162 20316 24259 22864 21059 22728 21422 20185 21958 20695 19608 23223 21887 20687 23822 22452 21191 23967 22589 21234 24442 23036 21643 25366 23907 22942 25551 24082 23137 26057 24558 23449 26429 24910 24090 25060 23619 22830 24805 23378 22784 23825 22455 21909 23117 21788 20855 24299 22901 21838 24527 23117 21999 23865 22493 21359 24139 22751 21711 24557 23145 22146 25581 24110 23120 26827 25284 24517 6/30/03 27421 25850 25051 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, indices 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. For the six-month period ended June 30, 2003, Columbia Real Estate Equity Fund class A shares returned 11.78% without sales charge. The NAREIT Index, a common measure of real estate securities performance, returned 13.87%. An overweight allocation to forest products, which was made late in 2002 in anticipation of a more rapid improvement in the economy, was the primary reason the fund fell short of its benchmark. The fund also was significantly underexposed to health care REITs, a sector that performed well. In addition, the fund's defensive cash position detracted from performance. UNDERLYING ECONOMIC CONDITIONS GENERALLY LESS HOSPITABLE TO GROWTH Business conditions underlying the nation's real estate markets were generally weak throughout the period. Job growth, which directly affects the health of the U.S. office and apartment markets, remained sluggish. The average vacancy rate in the major metropolitan office markets reached 17%, a level that is significantly higher than the historical average. During 2002, most office REITs reported year-over-year earnings declines, and few expect earnings to turn positive before the end of 2004. As office leases are renewed, we are doubtful that landlords will be able to extract meaningful rent increases. Similarly, apartment vacancy rates have increased, as low mortgage rates and a single-family construction boom are prompting renters to buy houses. As a result of these factors, we have maintained an underweight position in both office and apartment companies. By contrast, the retail sector has benefited from a combination of brisk consumer spending, attractive lease structures and unabated demand by retailers for high-quality mall space. As a result, the fund's holdings of higher-quality regional mall and shopping center companies have done well. Nevertheless, we have some concerns about consumers who, saddled by high debt and static incomes, may not be able to propel AVERAGE ANNUAL TOTAL RETURN (%) As of June 30, 2003
Class A Class B Class D Class Z - ----------------------------------------------------------------------------------------------------------- INCEPTION 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 - ----------------------------------------------------------------------------------------------------------- 6-month (cumulative) 11.78 5.35 11.34 6.34 11.35 9.25 12.09 - ----------------------------------------------------------------------------------------------------------- 1-year 3.73 -2.23 3.31 -1.69 3.33 1.30 4.17 - ----------------------------------------------------------------------------------------------------------- 5-year 6.92 5.66 6.83 6.52 6.84 6.62 7.01 - ----------------------------------------------------------------------------------------------------------- Life 11.53 10.82 11.48 11.48 11.48 11.36 11.58 - -----------------------------------------------------------------------------------------------------------
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 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 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 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 - -------------------------------------------------------------------------------- retail earnings growth indefinitely. As a result, we have taken profits from some of the fund's retail holdings. We continue to overweight the industrial sector, where we particularly like what ProLogis Trust (4.5% of net assets)1 has been doing in Europe and Japan. Although neither European nor Japanese economies are any more robust than the US, the company is leading the modernization of logistics in both regions. During the second quarter we took advantage of an attractive valuation opportunity to add a new position in Duke Realty (2.3% of net assets). Duke's management has significantly reduced the debt on its balance sheet, which will help it achieve greater growth if the manufacturing economies in which the company operates continue to improve. RISKS RISE FOR REITS The strong returns generated by REITs over the past year has largely been the result of investors seeking higher yields than they can get from alternative fixed income investments. The business conditions underlying the REIT markets likely have bottomed or are close to bottoming. As we have noted in the past, REIT returns tend to lag those of the broader stock market, which could make real estate securities less attractive if equities strengthen. The other risk facing REITs is that investors may become disappointed if the economic fundamentals underlying company earnings do not improve quickly enough to justify what is perceived to be a pricier market for their shares. Overall, however, we are generally encouraged by the income stability and liquidity that REITs offer, and we believe the fund is well positioned to benefit from eventual economic recovery over the long term. 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 June 30, 2003 (unaudited) Cousins Properties 5.4 iStar Financial 5.0 Simon Property Group 4.8 General Growth Properties 4.6 ProLogis Trust 4.5 Alexandria Real Estate Equities 3.6 Rouse 3.6 Regency Centers 3.5 Kimco Realty 3.4 Bowater 3.3 Because the fund is actively managed, there is no guarantee the fund will continue to maintain these holdings in the future. ------------------------------- TOP SECTORS % of net assets June 30, 2003 (unaudited) Real Estate 80.4 Paper & Forest products 6.9 Hotel, Restaurants & Leisure 5.8 Others 6.9 Because the fund is actively managed, there is no guarantee the fund will continue to maintain these sectors in the future. - --------------------- 1 Holdings are disclosed as of June 30, 2003 and are subject to change. 15 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- COLUMBIA TECHNOLOGY FUND PERFORMANCE OF A $10,000 INVESTMENT 11/9/00 - 6/30/03 without sales charge with sales charge -------------------- ----------------- Class A $4,985 $4,699 Class B 4,945 4,797 Class D 4,975 4,926 Class Z 5,005 n/a --------------------------------- GROWTH OF $10,000 SINCE INCEPTION (Mountain Chart) CLASS A SHARES CLASS A SHARES MERRILL LYNCH WITHOUT WITH 100 SALES CHARGE SALES CHARGE TECHNOLOGY INDEX -------------- -------------- ----------------- 11/9/00 10000 9425 10000 8713 8212 7182 8622 8127 6786 9142 8617 7954 6815 6423 5654 6145 5792 4751 7365 6941 5805 7135 6725 5464 7285 6866 5483 6745 6357 4987 6095 5745 4376 4547 4285 3242 5166 4869 3856 5896 5557 4585 6126 5773 4577 6086 5736 4602 5367 5058 3978 6106 5755 4440 5376 5067 3899 5047 4757 3681 4607 4342 3080 3888 3664 2669 3858 3636 2575 3468 3269 2112 3818 3598 2572 4258 4013 3140 3788 3570 2676 3828 3608 2667 3808 3589 2690 3679 3467 2671 4138 3900 2984 4888 4607 3491 6/30/03 4985 4699 3474 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, indices 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 REBOUNDED For the six-month period ended June 30, 2003, Columbia Technology Fund class A shares returned 31.66% without sales charge. The fund performed better than its benchmark, the Merrill Lynch 100 Technology Index, which posted a total return of 29.85% for the same period. The fund's aggressive positioning and its emphasis on semiconductors and the Internet accounted for its superior relative returns. Stocks in general--and technology stocks in particular--showed renewed signs of life during the first half of 2003. Early in the year, the anticipation of war in Iraq had a chilling effect on the stock market in an economy already slowed by an overly cold winter and a relatively strong dollar. (A strong dollar can be a problem for companies that sell their products into multinational markets.) But the cold wore off, a military victory was declared, the dollar weakened and stocks began to rise. Many of the stocks that had been beaten down most severely began to bounce back as investors were attracted to their valuations and the prospects of a strengthening economy ahead. BROADBAND GROWTH FUELED TECH SECTOR The accelerating growth of broadband Internet access was a key factor in the technology rally. As faster service has become available to more customers, Internet usage has stepped up. Many weaker Internet companies have gone out of business, but those companies that have survived the downturn have prospered. Many companies that were left for dead have seen their prospects improve. Many different types of companies have benefited from the trend to broadband and increased Internet usage. For example, our investment in E-Loan rose strongly during the period. On-line customers discovered the convenience of this one-stop shopping emporium for loan products, including mortgages and home equity credit lines. We took profits and sold the stock.
AVERAGE ANNUAL TOTAL RETURN (%) As of June 30, 2003 CLASS A CLASS B CLASS D CLASS Z - ----------------------------------------------------------------------------------------------------------- INCEPTION 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 - ----------------------------------------------------------------------------------------------------------- 6-month (cumulative) 31.66 24.09 30.95 25.95 31.75 29.44 32.19 - ----------------------------------------------------------------------------------------------------------- 1-year 8.24 2.04 7.38 2.38 8.03 5.88 8.68 - ----------------------------------------------------------------------------------------------------------- Life -23.19 -24.89 -23.42 -24.30 -23.25 -23.54 -23.07 - -----------------------------------------------------------------------------------------------------------
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 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 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 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 - -------------------------------------------------------------------------------- We also invested in companies that supply and support the infrastructure for high speed Internet transmission and networking systems, such as PMC-Sierra (4.7% of net assets).1 The fund had a large position in the stock, which appreciated strongly during the period. And we made Internet-related investments in China, Japan and India, where Internet usage is just beginning to gain favor. STRONG RETURNS FROM BIOTECH, RUSSIAN CELL PHONES After two years of negative performance, biotechnology companies were strong performers during the period. As a result, our stakes in Gilead Sciences and Exact Sciences did well (0.7% and 0.7% of net assets, respectively). Gilead develops drug therapies for infectious diseases and Exact Sciences specializes in early cancer detection tests. Outside the United States, our investment in the number one and number two mobile phone service providers in Russia, Vimpel-Communications and Mobile Telesystems (MTS) (1.6% and 2.0% of net assets, respectively), did well. Russian cell phone usage is still in the early stages. With subscriber growth rates of 20% per quarter, compared to 0%-5% in the United States, we believe that MTS and Vimpel-Communications continue to have attractive growth potential. OPTIMISTIC ABOUT THE PERIOD AHEAD Looking ahead, we are bullish on the prospects for the technology sector because we believe the economy's underlying strength has yet to surface. However, we have not tied the fund's prospects to an improving economy or increased corporate spending on information technology. Instead, we have concentrated on product cycle themes, such as broadband and the Internet, where we believe the accelerating usage will continue to provide opportunities going forward. We have focused on identifying companies with attractive business prospects. In addition, we are seeking to increase our exposure to the fast-growing technology markets of Russia and China, a reflection of our optimism that growth is likely to occur outside the United States as well. 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 June 30, 2003 (unaudited) PMC-Sierra 4.7 Intersil 4.4 Cabot Microelectronics 3.9 Marvell Technology Group 2.7 Inter-Tel 2.6 Siliconware Precision Industries 2.5 Sohu.com 2.3 4 Kids Entertainment 2.2 Electronics for Imaging 2.1 Dot Hill Systems 2.1 Because the fund is actively managed, there is no guarantee the fund will continue to maintain these holdings in the future. -------------------------------------- TOP FIVE SECTORS % of net assets June 30, 2003 (unaudited) Semiconductors equipment & products 29.1 Software 13.0 Communications equipment 11.5 Internet software & services 9.5 Media 8.1 Because the fund is actively managed, there is no guarantee the fund will continue to maintain these sectors in the future. - ---------------------- 1 Holdings are disclosed as of June 30, 2003 and are subject to change. 17 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- COLUMBIA STRATEGIC VALUE FUND PERFORMANCE OF A $10,000 INVESTMENT 11/9/00 - 6/30/03 WITHOUT SALES CHARGE WITH SALES CHARGE -------------------- ----------------- Class A $ 15,122 $ 14,254 Class B 15,021 14,721 Class D 15,011 14,862 Class Z 15,142 n/a -------------------------------------- GROWTH OF $10,000 SINCE INCEPTION (Mountain Chart) CLASS A SHARES CLASS A SHARES RUSSELl WITHOUT WITH 3000 S&P 500 SALES CHARGE SALES CHARGE VALUE INDEX INDEX - ---------------- --------------- ----------- ------- 11/9/00 10000 9425 10000 10000 9790 9227 9639 9212 11224 10579 10157 9257 12274 11568 10211 9586 12254 11549 9946 8713 11984 11295 9608 8161 12934 12190 10077 8794 13743 12953 10305 8853 13963 13160 10122 8638 13884 13085 10087 8553 13664 12879 9707 8019 12325 11616 8997 7372 12736 12003 8940 7513 13896 13097 9468 8089 14568 13731 9716 8160 14599 13759 9656 8041 14719 13872 9675 7886 15591 14695 10152 8182 15521 14629 9858 7686 15541 14648 9877 7630 14900 14043 9338 7087 13636 12852 8431 6535 13676 12889 8487 6577 12311 11603 7567 5863 12894 12153 8096 6378 14141 13328 8614 6753 13310 12544 8241 6357 12945 12201 8039 6191 12681 11952 7821 6098 12620 11894 7839 6157 13827 13032 8533 6664 14982 14121 9106 7015 6/30/03 15122 14254 9222 7104 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 indices. The S&P 500 Index is an unmanaged index generally considered representative of the US stock market. Unlike the fund, indices 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. For the six-month period ended June 30, 2003, Columbia Strategic Value Fund class A shares returned 13.63% without sales charge. The Russell 3000 Value Index returned 11.91% and the S&P 500 Index posted a return of 11.75%. The fund's peer group, the Lipper Multi-Cap Value Fund Category Average, had a total return of 12.31% during the same period.1 The fund benefited from strong stock selection in industries poised to benefit from an improved economy. SIGNS OF RECOVERY EMERGE During the first half of the six-month period, investors grappled with continued uncertainty abroad and lackluster economic prospects at home. A difficult winter segued into a strong second quarter as the equity markets experienced a welcome rebound. Investors reacted favorably to a relatively swift end to the major military campaign in Iraq and to improved corporate business prospects. CONSUMER DISCRETIONARY, TECHNOLOGY AND EMERGING MARKETS LED PERFORMANCE During the period, the fund emphasized consumer discretionary stocks such as CarMax and Target (0.6% and 0.5% of net assets, respectively), both made a significant contribution to performance.2 In information technology, SanDisk (0.8% of net assets), a leading supplier of flash data storage products, generated attractive returns. The fund also benefited from exposure to cellular communications companies in emerging markets--a sector that we believe offers compelling long-term growth prospects. Notable contributors included Vimpel-Communications, PT Telekomunikasi and Millicom International Cellular (1.2%, 0.6% and 0.4% of net assets, respectively). Exposure to the technology sector, which was the period's strongest performer, helped the fund. Investments in SAP and Teradyne registered strong gains (0.4% and 0.6% of net assets, respectively). Average Annual Total Return (%) As of June 30, 2003
CLASS A CLASS B CLASS D CLASS Z - ------------------------------------------------------------------------------------------------------------ INCEPTION 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 - ------------------------------------------------------------------------------------------------------------ 6-month (cumulative) 13.63 7.10 13.13 8.13 12.97 10.85 13.70 - ------------------------------------------------------------------------------------------------------------ 1-year 1.51 -4.35 0.83 -4.16 0.77 -1.23 1.65 - ------------------------------------------------------------------------------------------------------------ Life 16.97 14.38 16.67 15.78 16.65 16.20 17.03 - ------------------------------------------------------------------------------------------------------------
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. Had the expense differential been reflected, the returns shown for periods prior to the inception of classes A, B and D would have been lower. 18 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- In the industrial sector, Chicago Bridge & Iron (0.3% of net assets) did well. A weak US dollar helped fuel strong returns from companies overseas. A standout performer in the foreign sector was Nokian Renkaat (1.2% of net assets), a Finnish manufacturer specializing in winter tires. We are encouraged by Nokian's current expansion into the Russian market, a move that we believe will generate attractive earnings. DISAPPOINTMENTS IN RAW MATERIALS AND REGIONAL BELLS While the fund experienced strong performance from many sectors, it experienced disappointing returns from materials and telecommunications. In the raw materials sector, IMC Global, one of the world's leading fertilizer suppliers, was hurt by rising natural gas prices, which drove its costs higher. As a result, we eliminated our position in IMC Global during the period. Regional Bell operating companies were set back by an unfavorable Federal Communications Commission (FCC) ruling, and their shares lost value. We also eliminated our position in Regional Bell during the period. POSITIONED FOR RECOVERY We are optimistic concerning the prospects for the economy going forward. Significant fiscal and monetary stimulus, including tax reform, and a weak US dollar should provide the ammunition necessary for economic recovery, which we anticipate later this year. A strengthening economy, however, will likely trigger a rise in interest rates. As a result, we have trimmed our exposure to financial sectors, specifically among property and casualty insurers and banks, such as J.P. Morgan Chase and Wachovia (0.6% and 1.1% of net assets, respectively). We also anticipate that small business spending will increase as economic recovery takes hold. Therefore, we have focused on companies in the capital goods, basic materials and technology industries that should be the direct beneficiaries of this trend. We believe that companies such as Polycom (0.6% of net assets), a video conferencing service provider, may benefit from the continued emphasis on corporate cost cutting. 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 June 30, 2003 (unaudited) 3M 1.7 Vimpel-Communications 1.2 Nokian Renkaat 1.2 Wachovia 1.1 Caterpillar 1.0 American International Group 1.0 Citigroup 0.9 AOL Time Warner 0.9 Eaton 0.9 Cendant 0.9 Because the fund is actively managed, there is no guarantee the fund will continue to maintain these holdings in the future. ----------------------------------- Top Five Sectors % of net assets June 30, 2003 (unaudited) Consumer discretionary 13.9 Industrials 12.1 Financials 11.8 Information technology 10.2 Energy 9.2 Because the fund is actively managed, there is 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 June 30, 2003 and are subject to change. 19 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- COLUMBIA BALANCED FUND PERFORMANCE OF A $10,000 INVESTMENT 6/30/93 - 6/30/03 WITHOUT SALES CHARGE WITH SALES CHARGE -------------------- ----------------- Class A $20,619 $19,437 Class B 20,517 20,517 Class D 20,529 20,325 Class Z 20,688 n/a ---------------------------------------- Growth of $10,000 Over 10 Years (Mountain Chart) LEHMAN BROTHERS CLASS A WITHOUT CLASS A WITH SALES S&P 500 AGGREGATE BOND SALES CHARGE CHARGE INDEX INDEX - --------------- ------------------ ---------- ----------------- 6/30/93 10000 9425 10000 10000 10011 9435 10057 9960 10351 9756 10233 10337 10401 9803 10261 10258 10474 9872 10299 10470 10334 9739 10211 10371 10479 9877 10266 10496 10725 10109 10405 10853 10532 9927 10224 10558 10216 9629 9971 10098 10263 9673 9891 10227 10375 9779 9890 10395 10180 9595 9869 10140 10490 9887 10065 10472 10680 10066 10077 10902 10471 9869 9929 10635 10489 9886 9920 10874 10339 9745 9898 10478 10489 9886 9967 10633 10635 10023 10164 10909 10987 10355 10406 11334 11145 10504 10469 11668 11286 10637 10616 12012 11677 11006 11027 12492 11830 11150 11107 12782 12058 11365 11083 13206 12189 11488 11217 13239 12467 11750 11326 13798 12448 11732 11473 13748 12816 12079 11645 14352 13119 12364 11808 14629 13283 12519 11886 15126 13276 12513 11679 15267 13381 12612 11597 15413 13433 12661 11532 15640 13565 12785 11509 16043 13691 12904 11664 16104 13412 12641 11695 15393 13625 12842 11675 15717 14038 13231 11878 16602 14205 13388 12142 17061 14821 13969 12350 18350 14666 13822 12235 17987 15026 14162 12273 19111 15070 14204 12303 19260 14844 13990 12167 18469 15260 14382 12349 19571 15769 14863 12467 20763 16242 15308 12615 21693 17168 16181 12956 23420 16646 15689 12846 22109 17117 16133 13034 23320 16924 15951 13223 22541 17257 16265 13284 23585 17413 16411 13418 23990 17656 16641 13590 24257 18274 17224 13579 26006 18795 17715 13625 27337 18902 17815 13696 27613 18821 17739 13826 27138 19452 18333 13944 28240 19370 18256 13973 27941 17915 16885 14201 23901 18526 17461 14533 25433 19126 18027 14456 27500 19834 18694 14539 29167 20909 19707 14582 30847 21505 20268 14686 32136 21028 19818 14429 31137 21713 20465 14508 32382 21921 20661 14555 33635 21494 20258 14426 32842 22229 20951 14380 34664 21789 20536 14318 33583 21532 20294 14311 33418 21431 20198 14477 32503 22095 20825 14531 34560 22566 21268 14529 35262 23561 22206 14460 37338 23017 21693 14412 35464 23684 22322 14586 34794 25190 23742 14779 38197 24664 23246 14736 37047 24050 22667 14729 36287 24846 23417 15035 37184 24769 23345 15172 36604 25831 24346 15392 38877 24741 23319 15489 36824 24375 22974 15591 36669 23344 22002 15847 33780 23757 22391 16141 33945 24192 22801 16406 35150 22670 21367 16549 31945 21895 20636 16632 29919 22843 21530 16562 32244 22948 21629 16661 32460 22625 21324 16724 31671 22561 21264 17099 31361 21742 20492 17296 29398 20651 19463 17498 27022 21051 19841 17864 27539 21877 20619 17617 29651 21999 20734 17505 29912 21691 20444 17646 29475 21500 20264 17818 28906 21810 20556 17522 29993 21081 19869 17862 28175 21157 19941 18013 27967 20269 19103 18168 25976 19233 18127 18388 23952 19493 18372 18699 24108 18403 17345 19002 21487 19110 18011 18915 23378 19849 18708 18909 24755 19146 18046 19300 23302 18896 17809 19318 22692 18786 17706 19584 22351 18863 17778 19569 22568 19829 18689 19731 24428 20509 19330 20098 25715 6/30/03 20619 19437 20064 26018 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 June 30, 1993, 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, indices are not investments, do not incur fees, and are not professionally managed. It is not possible to invest directly in an index. Securities in this fund may not match those in an index. For the six-month period ended June 30, 2003, Columbia Balanced Fund class A shares returned 7.71% without sales charge. Over the same time, the Lehman Brothers Aggregate Bond Index returned 3.93% and the S&P 500 Index returned 11.75%. The fund underperformed the Lipper Balanced Funds Category average, which returned 8.65%.1 We believe, our lower concentration in low quality bonds, and a lighter exposure to technology and utility stocks, both of which outperformed during the period, hurt relative performance. PRESSURE ON YIELDS PUSHED FIXED-INCOME INVESTORS TOWARD HIGHER YIELDING SECURITIES Although there was widespread belief that interest rates were poised to move higher when the year began, the Federal Reserve Board indicated that it might lower a key short-term interest rate when the economy failed to show marked improvement in the first quarter of 2003. In June, the Fed put an end to such speculation when it lowered the federal funds rate-- the overnight rate banks charge each other for borrowing--to 1.0%. Investors responded to the lowest yields in 45 years by shifting to lower quality, higher-yielding fixed-income securities. The fixed income securities in the portfolio performed better than the Lehman Brothers Aggregate Bond Index, which is our benchmark for fixed income. However, the fund's ability to invest in many of the lower quality bonds that did well in this environment is limited. High yield bonds are limited to 10% of the fund's bond holdings and we do not invest in emerging market bonds or foreign currency denomimated bonds, both of which did well during the period. We reduced the fund's exposure to mortgage pass through securities, which have been hurt by yet another wave of mortgage refinancing activity and remain underweighted in the sector. The fund is overweighted in asset-backed sectors, as well as high-quality corporate bonds, because we believe that our quality bias will benefit the fund in the future. AVERAGE ANNUAL TOTAL RETURN (%) As of June 30, 2003
CLASS A CLASS B CLASS D CLASS Z - ------------------------------------------------------------------------------------------------------------ INCEPTION 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 - ------------------------------------------------------------------------------------------------------------ 6-month (cumulative) 7.71 1.51 7.31 2.31 7.43 5.37 8.04 - ------------------------------------------------------------------------------------------------------------ 1-year 1.74 -4.13 1.23 -3.75 1.29 -0.71 2.07 - ------------------------------------------------------------------------------------------------------------ 5-year 1.17 -0.02 1.07 0.76 1.08 0.88 1.24 - ------------------------------------------------------------------------------------------------------------ 10-year 7.51 6.87 7.45 7.45 7.46 7.35 7.54 - ------------------------------------------------------------------------------------------------------------
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 - -------------------------------------------------------------------------------- AN ERRATIC PERIOD FOR STOCKS, FOLLOWED BY A STRONG RALLY IN THE SECOND QUARTER During the first three months of the period, a weak stock market reflected investor fears about an impending war in Iraq, rising unemployment and generally weak economic growth. By the second quarter, investor psychology had shifted as the United States declared a military victory in Iraq. Against this background, we raised the fund's allocation to stocks and lowered its allocation to bonds in order to take advantage of what we perceived to be greater opportunity in the stock market. We increased our stake in out-of-favor consumer cyclical stocks, particularly in the leisure and home improvement areas. Our purchases included Carnival, Royal Caribbean Cruises, Target and Home Depot (0.3%, 0.7%, 1.0% and 1.0% of net assets, respectively).2 Generally speaking, these positions did well for the fund as investor sentiment improved in the second quarter. We increased our investments in information technology stocks. However, we believe that our exposure to technology and utility stocks, which led the market during the six-month period, was less than funds in our peer group. That underweight, combined with some disappointing investments in the energy, industrials and telecommunications sectors hindered performance. A MIXED OUTLOOK FOR THE NEXT SIX MONTHS We expect the economy to grow during the next six months as lower tax rates combined with already-higher stock prices have the potential to make consumers more optimistic. However, the high unemployment rate could weigh on consumer confidence, and the rapid run-up in prices on speculative stocks could cause the market to give back some of its recent gains. In this environment, we expect to maintain our diversified bond holdings, with an emphasis on quality and a bias toward those companies that can benefit from an improving economy. Within the fund's stock holdings, we are currently overweight compared to the S&P 500 Index in financials, consumer cyclicals, energy service, technology, health care and media stocks and underweight in transportation, basic materials and consumer staples. We are generally more optimistic on capital spending going forward, and we will look for opportunities to incorporate that outlook into our stock selection. We will also look to add stocks of companies that appear able to take advantage of the recent reduction in dividend tax rates by redeploying capital back to shareholders in the form of higher dividends. LEONARD APLET, SCOTT DRYSDALE, RON GIBBS, GUY POPE AND TRENT NEVILLS 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 June 30, 2003 (unaudited) Citigroup 2.6 Pfizer 2.6 Microsoft 2.2 General Electric 1.6 Bank of America 1.4 American Express 1.3 McDonald's 1.1 Altria 1.1 J.P. Morgan Chase 1.1 Johnson & Johnson 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 June 30, 2003 (unuadited) Common stocks 61.5 Government issues 14.6 Corporate notes & bonds 13.6 Cash, net receivables & payables 3.7 Asset-backed securities 3.6 Collateralized mortgage obligations 1.7 Commercial mortgage-backed securities 1.0 Preferred stock 0.3 Because the fund is actively managed, there can be no guarantee the fund will continue to maintain this composition 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 the fund. 2 Holdings are disclosed as of June 30, 2003 and are subject to change. 21 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- COLUMBIA SHORT TERM BOND FUND PERFORMANCE OF A $10,000 INVESTMENT 6/30/93 - 6/30/03 WITHOUT SALES CHARGE WITH SALES CHARGE -------------------- ----------------- Class A $16,689 $15,905 Class B 16,605 16,605 Class D 16,668 16,494 Class G 16,634 16,634 Class T 16,708 15,923 Class Z 16,731 n/a --------------------------------------- Growth of $10,000 Over 10 Years (Mountain Chart) CLASS A SHARES CLASS A SHARES MERRILL LYNCH MERRILL LYNCH WITHOUT WITH 1-5 YEAR 1-3 SALES CHARGE SALES CHARGE GOV'T/CORP INDEX YEAR TREASURY INDEX - ------------------ --------------- ---------------- ------------------- 6/30/93 10000 9525 10000 10000 10008 9533 10022 10023 10122 9641 10143 10110 10140 9659 10180 10143 10159 9676 10202 10163 10140 9659 10184 10166 10183 9699 10226 10204 10239 9753 10311 10269 10157 9675 10209 10203 10103 9623 10116 10152 10074 9595 10057 10117 10084 9605 10071 10131 10107 9627 10092 10161 10183 9699 10199 10248 10211 9726 10236 10284 10180 9696 10182 10261 10199 9715 10197 10283 10169 9685 10143 10237 10180 9696 10169 10261 10306 9816 10324 10403 10415 9920 10500 10546 10468 9971 10563 10605 10558 10057 10672 10699 10727 10218 10922 10886 10776 10264 10987 10945 10809 10295 11016 10990 10869 10353 11092 11056 10916 10398 11155 11110 11018 10494 11264 11203 11131 10602 11385 11302 11218 10685 11486 11389 11318 10780 11588 11486 11237 10704 11508 11438 11187 10656 11475 11427 11176 10645 11464 11436 11181 10650 11472 11461 11269 10733 11570 11543 11305 10768 11612 11588 11326 10788 11640 11627 11445 10901 11768 11733 11581 11031 11930 11866 11673 11118 12046 11957 11652 11098 12015 11957 11701 11145 12069 12013 11717 11160 12089 12041 11683 11128 12060 12036 11790 11230 12176 12135 11857 11293 12265 12217 11935 11368 12361 12302 12073 11500 12542 12437 12065 11492 12525 12448 12143 11566 12641 12543 12238 11657 12755 12636 12243 11661 12779 12666 12324 11738 12874 12752 12448 11857 13024 12876 12433 11843 13022 12887 12468 11876 13073 12940 12532 11936 13135 13001 12597 11998 13215 13070 12646 12045 13292 13138 12696 12093 13351 13200 12868 12257 13544 13366 13053 12433 13787 13542 13117 12494 13832 13609 13070 12449 13813 13597 13117 12494 13864 13644 13161 12536 13933 13699 13059 12439 13808 13632 13149 12524 13921 13726 13175 12549 13967 13770 13140 12516 13912 13761 13182 12556 13953 13804 13209 12582 13968 13848 13221 12593 13996 13888 13298 12666 14109 13979 13313 12680 14142 14016 13326 12693 14165 14043 13351 12717 14167 14063 13339 12706 14136 14057 13422 12784 14237 14151 13476 12836 14348 14239 13512 12870 14358 14276 13567 12923 14399 14334 13673 13024 14589 14484 13731 13078 14693 14575 13823 13166 14830 14683 13881 13221 14963 14788 13940 13278 15030 14868 14095 13426 15203 15009 14322 13642 15424 15188 14498 13810 15647 15378 14617 13923 15769 15478 14724 14024 15913 15606 14740 14040 15922 15648 14825 14121 16016 15736 14877 14171 16076 15790 15105 14388 16333 15966 15227 14504 16452 16059 15433 14700 16747 16324 15621 14879 16944 16479 15520 14782 16842 16443 15481 14746 16807 16449 15538 14800 16856 16482 15608 14867 16960 16561 15519 14782 16791 16449 15707 14961 17022 16633 15803 15052 17154 16700 15896 15141 17303 16840 15990 15230 17524 17045 16103 15338 17673 17103 16271 15498 17898 17245 16183 15414 17896 17285 16186 15417 17867 17233 16333 15558 18139 17395 16353 15576 18148 17393 16482 15699 18308 17466 16497 15713 18344 17498 16561 15775 18427 17531 16686 15893 18624 17598 6/30/03 16689 15905 18648 17624 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 June 30, 1993, 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, indices 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 six-month period ended June 30, 2003, the class A shares of Columbia Short Term Bond Fund returned 2.20% without sales charge. By comparison, the Merrill Lynch 1-5 Year Government/ Corporate Index returned 2.81%, the Merrill Lynch 1-3 Year Treasury Index returned 1.31%, and the Lipper Short Investment Grade Debt Category returned 2.15%.1 The fund's sector and security selections enabled it to outperform its peer group and the shorter-term index. However, the fund's relatively short duration caused it to underperform the 1-5 year index, as bonds with longer maturities outperformed during the period. Duration is a measure of interest-rate sensitivity. RESPONDING TO A WEAK RECOVERY The economy continued to experience a weak recovery, with gross domestic product (GDP) rising by just 1.4% in the first quarter. Business investment and industrial production were especially sluggish. The federal government has sought to stimulate the economy by reducing taxes, increasing the money supply and lowering short-term interest rates. In late June, the Federal Reserve lowered the federal funds rate--the overnight lending rate that commercial banks charge each other--by one quarter of one percentage point, to just 1.00%. In this environment, mortgage rates dropped to 45-year lows and the resulting wave of refinancings created additional stimulus for the consumer. As a result, automobile sales were strong, as was the housing market. MANAGING WITHIN A RISK-TAKER'S MARKET As yields on money market mutual funds, CDs, and bank deposits declined to historically low levels, fixed-income investors sought higher yields by moving into lower quality securities as well as securities with longer maturities. This trend toward risk-taking provided positive returns to the fund's shareholders. However, the fund's conservative nature limited the amount of benefit we could derive as compared to AVERAGE ANNUAL TOTAL RETURN (%) As of June 30, 2003
CLASS A CLASS B CLASS D - ------------------------------------------------------------------------------------------------ INCEPTION 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 - ------------------------------------------------------------------------------------------------ 6-month (cumulative) 2.20 -2.63 1.85 -3.15 2.13 0.09 - ------------------------------------------------------------------------------------------------ 1-year 5.00 0.00 4.47 -0.53 4.87 2.79 - ------------------------------------------------------------------------------------------------ 5-year 5.71 4.69 5.60 5.28 5.68 5.48 - ------------------------------------------------------------------------------------------------ 10-year 5.26 4.75 5.20 5.20 5.24 5.13 - ------------------------------------------------------------------------------------------------
CLASS G CLASS T CLASS Z - ------------------------------------------------------------------------------- INCEPTION 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 - ------------------------------------------------------------------------------- 6-month (cumulative) 1.94 -3.06 2.30 -2.54 2.40 - ------------------------------------------------------------------------------- 1-year 4.65 -0.35 5.12 0.11 5.26 - ------------------------------------------------------------------------------- 5-year 5.64 5.15 5.73 4.72 5.76 - ------------------------------------------------------------------------------- 10-year 5.22 5.22 5.27 4.76 5.28 - ------------------------------------------------------------------------------- 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 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-1%, 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 - -------------------------------------------------------------------------------- more aggressive funds. The fund holds only investment grade securities, (with just 6% of the portfolio in the BBB category) and an average credit quality of AA+. Similarly, the fund's average duration of between 1.65 and 1.75 years is materially lower than the duration of the Merrill Lynch 1-5 Year Government/Corporate Index. Although this hampered relative returns during the period, a shorter duration should benefit the fund if interest rates rise. The market's behavior during the past six months was unusual in that lower quality sectors continued to do well even though economic growth was sluggish and interest rates continued to fall. The yield differential between lower quality and investment grade bonds has narrowed. Yet, we have maintained a market weight in this sector because we believe that corporate bonds still represent attractive value. At the same time, we have reduced the portfolio's risk exposure by diversifying across industries and increasing the number of individual corporate bond holdings. The fund has maintained its positions in high-quality mortgage-backed and asset-backed securities, which generally provide higher yields than Treasuries without the credit risk of lower-quality corporate bonds. The asset-backed sector did especially well in the first quarter and then stabilized during the second quarter. Mortgage pass-throughs have been held back by unusually high refinancing activity, which causes the securities to prepay instead of appreciating with lower rates. The fund has sought to lower its prepayment exposure by focusing on mortgages with lower coupons. HIGHER RATES POSSIBLE IN THE FUTURE Many analysts and market observers believe that economic growth, as measured by gross domestic product (GDP), will accelerate during the second half of the year, possibly to the 3-4% level. Should the economy improve to this extent, interest rates could also move higher. As a result, the fund has built up a higher-than-average cash position. This cash position, coupled with the fund's yield advantage versus money market funds, should afford some protection against rising interest rates. LEONARD A. APLET AND RICHARD R. CUTTS 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 June 30, 2003 (unuadited) Corporate notes & bonds 34.6 Collateralized mortgage obligations 22.2 Mortgage-backed securities 17.8 Asset-backed securities 9.5 Government issues 8.0 Cash, net receivables & payables 7.3 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 June 30, 2003 (unaudited) (Pie Chart) Agency 22.1 Aaa 38.7 Aa 10.8 A 15.0 Baa 6.6 Treasury 6.8 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 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 6/30/93 - 6/30/03 WITHOUT SALES CHARGE WITH SALES CHARGE -------------------- ----------------- Class A $18,902 $18,007 Class B 18,806 18,806 Class D 18,834 18,646 Class Z 18,976 n/a ------------------------------------- GROWTH OF $10,000 OVER 10 YEARS (Mountain Chart) CLASS A SHARES WITHOUT CLASS A SHARES LEHMAN BROTHERS AGGREGATE SALES CHARGE WITH SALES CHARGE BOND INDEX - ---------------------- ---------------------- ------------------------- 6/30/93 10000.00 9525.00 10000.00 10058.00 9580.25 10057.00 10275.20 9787.18 10233.00 10303.00 9813.60 10260.60 10331.80 9841.08 10298.60 10196.50 9712.16 10211.00 10246.50 9759.75 10266.20 10387.90 9894.44 10404.80 10174.90 9691.60 10223.70 9934.78 9462.88 9971.22 9854.31 9386.23 9891.45 9846.43 9378.72 9890.46 9829.69 9362.78 9868.70 10003.70 9528.50 10065.10 10011.70 9536.12 10077.20 9869.51 9400.71 9929.03 9847.80 9380.03 9920.09 9825.15 9358.45 9898.27 9900.80 9430.51 9966.57 10090.90 9611.58 10163.90 10320.00 9829.76 10405.80 10390.10 9896.60 10469.30 10542.90 10042.10 10615.90 10963.50 10442.80 11026.70 11051.20 10526.30 11107.20 11022.50 10498.90 11082.70 11161.40 10631.20 11216.90 11283.00 10747.10 11325.60 11430.90 10887.90 11472.90 11605.80 11054.50 11645.00 11772.90 11213.70 11808.00 11844.70 11282.10 11885.90 11625.60 11073.40 11679.10 11548.80 11000.30 11597.40 11459.90 10915.60 11532.40 11434.70 10891.50 11509.40 11595.90 11045.10 11663.60 11614.50 11062.80 11695.10 11605.20 11053.90 11675.20 11814.10 11252.90 11878.30 12064.50 11491.50 12142.00 12287.70 11704.10 12349.70 12171.00 11592.90 12234.80 12219.70 11639.20 12272.80 12257.60 11675.30 12303.40 12127.60 11551.60 12166.90 12305.90 11721.40 12349.40 12420.40 11830.40 12466.70 12563.20 11966.40 12615.00 12908.70 12295.50 12955.60 12793.80 12186.10 12845.50 12978.00 12361.60 13034.40 13175.30 12549.50 13223.40 13214.80 12587.10 13284.20 13335.10 12701.60 13418.30 13495.10 12854.10 13590.10 13484.30 12843.80 13579.20 13515.30 12873.30 13625.40 13585.60 12940.30 13696.20 13720.10 13068.40 13826.40 13831.20 13174.20 13943.90 13852.00 13194.00 13973.20 14077.80 13409.00 14200.90 14345.20 13663.80 14533.20 14219.00 13543.60 14456.20 14278.70 13600.50 14538.60 14328.70 13648.10 14582.20 14430.40 13745.00 14685.80 14153.40 13481.10 14428.80 14243.90 13567.30 14508.10 14290.90 13612.10 14554.50 14120.90 13450.10 14426.50 14058.70 13391.00 14380.30 13964.50 13301.20 14318.50 13936.60 13274.60 14311.30 14108.00 13437.90 14477.30 14147.50 13475.50 14530.90 14164.50 13491.70 14529.40 14109.30 13439.10 14459.70 14026.00 13359.80 14412.00 14169.10 13496.10 14586.40 14349.00 13667.50 14778.90 14298.80 13619.60 14736.00 14287.40 13608.70 14728.70 14597.40 13904.00 15035.00 14701.10 14002.80 15171.80 14924.50 14215.60 15391.80 15029.00 14315.10 15488.80 15111.60 14393.90 15591.00 15386.70 14655.80 15846.70 15699.00 14953.30 16141.50 15976.90 15218.00 16406.20 16115.90 15350.40 16548.90 16202.90 15433.30 16631.70 16100.90 15336.10 16561.80 16208.70 15438.80 16661.20 16255.70 15483.60 16724.50 16628.00 15838.20 17099.10 16787.60 15990.20 17295.80 16963.90 16158.10 17498.10 17306.60 16484.50 17863.80 17090.20 16278.40 17617.30 16975.70 16169.40 17504.60 17079.30 16268.00 17646.30 17217.60 16399.80 17817.50 16974.80 16168.50 17521.80 17288.90 16467.70 17861.70 17420.30 16592.80 18013.50 17484.70 16654.20 18168.40 17652.60 16814.10 18388.20 17954.50 17101.60 18699.00 18216.60 17351.30 19001.90 18005.30 17150.00 18914.50 17985.50 17131.20 18908.80 18258.80 17391.50 19300.30 18280.80 17412.40 19317.60 18534.80 17654.50 19584.20 18521.90 17642.10 19568.50 18660.80 17774.40 19731.00 18959.40 18058.80 20098.00 6/30/03 18902.40 18006.70 20057.80 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 June 30, 1993, 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, indices 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. At a time when fixed-income investors sought higher yields from lower quality securities, the fund's high credit standards placed it at a disadvantage with respect to its peer group, and benchmark index. For the six-month period ended June 30, 2003, class A shares of Columbia Fixed Income Securities Fund returned 3.51% without sales charge. By comparison, the Lehman Brothers Aggregate Bond Index returned 3.93%. And the Lipper Corporate Debt Funds A Rated Category Average was 4.74%.1 CONTINUED DOWNWARD PRESSURE ON RATES Although many analysts had predicted a return to normal economic growth in 2003, gross domestic product (GDP) rose by just 1.4% in the first quarter. The Federal Reserve signalled that it would continue to provide monetary stimulus as long as the economy remained sluggish, and in late June they lowered the federal funds rate--the overnight borrowing rate commercial banks charge each other--from 1.25% to just 1.00%. A RISK TAKER'S MARKET Although consumers have benefited from historically low rates on mortgages and other loans, fixed-income investors have found it difficult to generate adequate yield without venturing into the lower quality sectors of the market, especially low-rated corporate bonds. The fund can invest up to 10% of its assets in these securities, and for the first six months our position in the high-yield sector has been at the 5%-6% level. This relatively low commitment hurt the fund competitively, because many funds in our peer group allow as much as 20% of assets to be invested in high-yield securities, even those with ratings as low as single-B. Average Annual Total Return (%) As of June 30, 2003
CLASS A CLASS B CLASS D CLASS Z - ------------------------------------------------------------------------------------------------------------ INCEPTION 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 - ------------------------------------------------------------------------------------------------------------ 6-month (cumulative) 3.51 -1.38 3.13 -1.87 3.25 1.20 3.83 - ------------------------------------------------------------------------------------------------------------ 1-year 8.09 2.96 7.54 2.54 7.70 5.66 8.51 - ------------------------------------------------------------------------------------------------------------ 5-year 6.45 5.42 6.34 6.02 6.37 6.15 6.53 - ------------------------------------------------------------------------------------------------------------ 10-year 6.57 6.06 6.52 6.52 6.54 6.43 6.62 - ------------------------------------------------------------------------------------------------------------
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 - -------------------------------------------------------------------------------- The fund was also hurt versus its peer group because it does not buy any foreign-denominated or emerging market securities. Emerging market securities tend to be lower quality and higher yielding, and in the environment that prevailed during the six-month period, they were in high demand. In general, foreign bonds have done well thus far in 2003 because of the decline in the dollar, which has rewarded securities denominated in other currencies. POSITIONING THE PORTFOLIO The fund portfolio remains modestly overweight in corporate bonds. Although the yield differential between corporate bonds and Treasuries of comparable maturities has come down substantially, we believe that corporates can continue to outperform in an environment where risk-free returns are as low as they are today. Among alternative investments, we are underweight in straight mortgage pass-throughs, whose performance has been held back by high levels of mortgage prepayments. Prepayments increase as interest rates decline and more homeowners refinance. However, our underweight in the mortgage sector has been compensated for by our positions in collateralized mortgage obligations (CMOs), and other AAA-rated asset-backed securities. Both CMOs and asset-backed securities offer higher yields than Treasuries without the credit risks associated with the corporate market. OUR OUTLOOK Although a full-blown economic recovery has been long in coming, we are hopeful that the latest interest rate cut, combined with the stimulus provided by May's dividend tax cut, will provide the much-needed push to encourage business spending and capital investment. Many economic analysts are anticipating a return to a more normal GDP growth rate of between 3% and 4% for the second half of this year. Should these figures be realized, it is likely that interest rates will begin to climb sometime in the next six to nine months. While such a scenario would inevitably put pressure on bond prices, we believe that the fund's relatively conservative positioning will allow it to post competitive returns even in a rising-rate environment. LEONARD A. APLET AND RICHARD R. CUTTS 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 June 30, 2003 (unaudited) Corporate notes & bonds 36.3 Mortgage-backed securities 22.9 Government issues 17.2 Collateralized mortgage obligations (CMO) 12.9 Asset-backed securities 6.8 Cash, net receivables & payables 3.9 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 June 30, 2003 (unaudited) (Pie Chart) Treasury/Agency 44 AAA 20.9 AA 9.2 A 13.3 BBB 7.3 BB 3.0 B 2.3 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. 25 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- COLUMBIA NATIONAL MUNICIPAL BOND FUND PERFORMANCE OF A $10,000 INVESTMENT 2/24/99 - 6/30/03 WITHOUT SALES CHARGE WITH SALES CHARGE -------------------- ----------------- Class A $12,660 $12,057 Class B 12,599 12,399 Class D 12,626 12,501 Class Z 12,695 n/a ------------------------------------------ Growth of $10,000 Since Inception (Mountain Chart) CLASS A SHARES WITHOUT CLASS A SHARES LEHMAN BROTHERS SALES CHARGE WITH SALES CHARGE MUNICIPAL BOND INDEX - --------------------- ----------------- -------------------- 2/24/99 9934 9462 10014 9920 9449 10039 9951 9478 9981 9893 9423 9837 9733 9271 9872 9768 9304 9794 9671 9212 9797 9675 9216 9692 9567 9112 9794 9674 9214 9721 9608 9152 9678 9543 9089 9790 9641 9183 10004 9868 9399 9945 9791 9326 9893 9714 9253 10155 9985 9511 10296 10110 9630 10455 10267 9779 10401 10209 9724 10514 10336 9845 10594 10407 9913 10856 10654 10148 10963 10749 10238 10998 10765 10253 11097 10861 10345 10977 10737 10227 11096 10844 10329 11170 10918 10399 11335 11082 10555 11522 11256 10721 11483 11216 10684 11620 11346 10807 11522 11217 10684 11413 11097 10570 11610 11297 10760 11750 11426 10883 11519 11205 10673 11744 11454 10910 11816 11517 10970 11941 11649 11096 12095 11818 11257 12240 11952 11384 12508 12236 11655 12300 12017 11446 12249 11950 11382 12507 12209 11629 12476 12137 11561 12651 12328 11742 12658 12339 11753 12742 12431 11841 13040 12733 12129 12985 6/30/03 12660 12057 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, indices 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. PORTFOLIO PERFORMANCE For the six months ended June 30, 2003, class A shares of Columbia National Municipal Bond Fund returned 3.73%, without a sales charge. This return was higher than the Lipper General Municipal Debt Funds Category average, which was 3.39%,1 and just short of the Lehman Brothers Municipal Bond Index, which returned 3.81%. The fund's relative performance in the second half of the period benefited from an overweight in bonds with intermediate maturities, which outperformed long- and short-maturity issues. In addition, solid returns from non-rated issues had a positive impact on performance. BOND PRICES STALL, THEN MOVE HIGHER After moving little in the first quarter, yields fell and bond prices moved higher in the second quarter. Municipal yields fell between 0.15% and 0.40% across a range of maturities. Investors showed renewed interest in higher-yielding issues and appeared more willing to invest in riskier securities as economic prospects improved, the major campaigns in the war in Iraq ceased and the Federal Reserve Board took a strong pro-growth, anti-deflation stance on interest rates. The municipal market continued to experience a high level of new issuance, as municipalities took advantage of attractive financing rates to fund new projects or refund higher-cost debt. As in any economic slowdown, municipalities have been seeing a deterioration in their finances as state and local tax receipts continue to be down from prior years. Many states are on watch for credit downgrades with major ratings agencies. This negative outlook reflects the decline in states' revenues during the economic downturn as well as generally high unemployment. AVERAGE ANNUAL TOTAL RETURN (%) As of June 30, 2003
CLASS A CLASS B CLASS D CLASS Z - ------------------------------------------------------------------------------------------------------------ INCEPTION 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 - ------------------------------------------------------------------------------------------------------------ 6-month (cumulative) 3.73 -1.20 3.35 -1.65 3.53 1.54 3.98 - ------------------------------------------------------------------------------------------------------------ 1-year 8.70 3.54 8.18 3.18 8.41 6.35 9.00 - ------------------------------------------------------------------------------------------------------------ Life 5.58 4.40 5.46 5.07 5.51 5.27 5.64 - ------------------------------------------------------------------------------------------------------------
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 - -------------------------------------------------------------------------------- IMPROVING ECONOMIC OUTLOOK WOULD BENEFIT MUNICIPALS We believe municipals remain an attractive investment particularly for highly taxed investors, even with the recently lowered income tax rates. We expect rates to rise gradually over the next 12 to 18 months. Economic growth--and therefore municipal finances--should continue to improve. As always, we will continue to manage the fund with a focus on generating strong risk-adjusted long-term total return, taking opportunities to extend the maturity of holdings from very short-term issues out to intermediate issues and maintain an intermediate average maturity of 8 to 12 years. The Fund continues to focus on high-quality issues, diversified nationally across states and sectors. 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 June 30, 2003 (unaudited) Washington 13.8 Oregon 12.5 Illinois 10.4 Texas 10.3 Michigan 6.3 Tennessee 3.8 Indiana 3.8 Wisconsin 3.5 Louisiana 3.3 New York 3.3 Because the fund is actively managed, there can be no guarantee the fund will continue to maintain this composition in these states in the future. PORTFOLIO QUALITY % of net assets June 30, 2003 (unaudited) (Pie Chart) Aaa 60.0 Aa 15.6 A 6.0 Baa 2.2 Not Rated 15.4 Net Cash & Equivalents 0.8 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 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. 27 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- COLUMBIA OREGON MUNICIPAL BOND FUND PERFORMANCE OF A $10,000 INVESTMENT 6/30/93 - 6/30/03 WITHOUT SALES CHARGE WITH SALES CHARGE -------------------- ----------------- Class A $17,033 $16,224 Class B 16,953 16,953 Class D 16,995 16,821 Class Z 17,087 n/a --------------------------------------- GROWTH OF $10,000 OVER 10 YEARS (Mountain Chart) CLASS A SHARES WITHOUT CLASS A SHARES WITH LEHMAN BROTHERS GENERAL SALES CHARGE SALES CHARGE OBLIGATION BOND INDEX - ---------------------- ---------------------- ----------------------- 6/30/93 10000 9525 10000 10028 9552 10017 10183 9700 10215 10299 9809 10324 10303 9813 10337 10233 9747 10267 10390 9897 10479 10484 9986 10601 10236 9750 10317 9870 9401 9937 9922 9451 10044 9993 9518 10122 9945 9472 10061 10091 9611 10219 10128 9647 10263 9994 9520 10119 9870 9402 9974 9711 9249 9817 9904 9433 9991 10142 9660 10227 10367 9874 10497 10476 9978 10640 10487 9989 10647 10745 10235 10965 10659 10153 10890 10751 10240 11017 10887 10370 11157 10960 10440 11228 11088 10562 11356 11243 10709 11516 11308 10771 11607 11373 10833 11720 11316 10779 11666 11198 10666 11536 11152 10622 11496 11144 10615 11478 11255 10721 11593 11350 10811 11702 11351 10812 11701 11483 10937 11844 11598 11047 11981 11778 11219 12204 11731 11174 12155 11762 11203 12188 11856 11293 12299 11730 11173 12141 11808 11247 12235 11946 11378 12418 12053 11481 12552 12361 11774 12877 12282 11698 12763 12411 11821 12909 12471 11879 12980 12530 11935 13042 12712 12108 13227 12834 12224 13364 12818 12209 13374 12808 12200 13386 12765 12158 13315 12950 12335 13535 12978 12362 13584 13008 12390 13615 13204 12577 13830 13368 12733 14014 13345 12711 14017 13385 12750 14063 13420 12783 14110 13589 12944 14294 13485 12844 14222 13493 12852 14227 13532 12889 14266 13409 12772 14186 13218 12590 13977 13270 12640 14032 13156 12531 13949 13162 12537 13962 13027 12408 13841 13157 12532 13983 13064 12443 13895 12983 12366 13843 13092 12470 13982 13364 12729 14264 13292 12660 14191 13209 12582 14116 13529 12886 14480 13713 13062 14671 13922 13260 14881 13848 13190 14807 13999 13334 14962 14090 13420 15067 14405 13721 15423 14570 13877 15589 14610 13916 15636 14729 14029 15773 14570 13878 15611 14725 14026 15769 14818 14114 15866 15023 14309 16092 15265 14540 16351 15223 14500 16315 15417 14684 16483 15239 14516 16338 15060 14344 16207 15305 14578 16473 15484 14749 16674 15205 14483 16355 15503 14767 16692 15601 14860 16784 15785 15035 16972 15997 15237 17181 16186 15417 17377 16540 15754 17730 16237 15466 17442 16114 15348 17357 16431 15651 17697 16367 15590 17667 16621 15831 17911 16608 15819 17945 16724 15930 18060 17120 16307 18459 6/30/03 17033 16224 18370 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 June 30, 1993 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, indices 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. PORTFOLIO PERFORMANCE For the six month period ended June 30, 2003, class A shares of Columbia Oregon Municipal Bond Fund returned 3.62%, without sales charge. The fund returned slightly less than the Lehman Brothers General Obligation Bond Index, which gained 3.80%, but beat the Lipper Oregon Municipal Debt Funds Category average, which was 3.32%.1 The fund's relative performance in the second half of the period benefited from an overweight in bonds with intermediate maturities, which outperformed long- and short-maturity issues. In addition, solid returns from non-rated issues had a positive impact on performance. BOND PRICES RISE AS YIELDS FALL After moving little in the first quarter, yields fell and bond prices rose significantly in the second quarter. Municipal yields fell between 0.15% and 0.40% across a range of maturities. Investors showed renewed interest in higher-yielding issues and appeared more willing to invest in riskier securities as economic prospects improved, the major campaigns in the war with Iraq ceased and the Federal Reserve Board took a strong pro-growth, anti-deflation stance on interest rates. The municipal market continued to experience a high level of new issuance, as municipalities took advantage of attractive rates to fund new projects or refund higher-cost debt. As in any economic slowdown, municipalities have been experiencing a deterioration in their finances as state and local tax receipts have been far below those of prior years. Many states, including Oregon, are on watch for credit downgrades from major ratings agencies. This negative outlook reflects the decline in state revenues during the economic downturn as well as the relatively high unemployment rate. Depending on measures proposed by legislators to deal with the budget shortfall, the rating Average Annual Total Return (%) As of June 30, 2003
CLASS A CLASS B CLASS D CLASS Z - ------------------------------------------------------------------------------------------------------------ INCEPTION 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 - ------------------------------------------------------------------------------------------------------------ 6-month (cumulative) 3.62 -1.30 3.23 -1.77 3.44 1.41 3.83 - ------------------------------------------------------------------------------------------------------------ 1-year 7.86 2.71 7.35 2.35 7.61 5.51 8.20 - ------------------------------------------------------------------------------------------------------------ 5-year 5.59 4.57 5.49 5.16 5.54 5.32 5.65 - ------------------------------------------------------------------------------------------------------------ 10-year 5.47 4.96 5.42 5.42 5.45 5.34 5.50 - ------------------------------------------------------------------------------------------------------------
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 - -------------------------------------------------------------------------------- agencies could downgrade state debt from AA to A. We do not believe that such a downgrade would have a major impact on the price of bonds in the state, since AA-rated and A-rated debt trade similarly in the marketplace. However, it could bring prices down slightly. IMPROVING ECONOMIC OUTLOOK IS POSITIVE FOR MUNICIPALS Despite recently-lowered income tax rates, we believe municipals remain an attractive investment--particularly for highly-taxed investors. We expect rates to rise gradually over the next 12 to 18 months. Economic growth--and therefore municipal finances--should continue to improve. As always, we will continue to manage the fund with a focus on generating strong risk-adjusted long-term total return. We expect to take opportunities to extend the maturity of holdings from very short-term issues out to intermediate issues and maintain an intermediate average maturity of 8 to 12 years. The fund continues to focus on high quality issues, diversified across both counties and sectors within Oregon. 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 June 30, 2003 (unaudited) Revenue 35.2 Insured revenue 18.3 General obligations 18.1 Insured general obligations 16.9 State general obligations 5.7 Other bonds 2.9 Cash, net receivables & payables 2.3 U.S. territories 0.5 Pre-refunded bond 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 net assets June 30, 2003 (unaudited) (Pie Chart) Aaa 36.8 Aa 40.0 A 7.4 Baa 3.9 Not Rated 11.3 Net Cash & Equivalents 0.5 Other 0.1 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. 29 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- COLUMBIA HIGH YIELD FUND PERFORMANCE OF A $10,000 INVESTMENT 10/1/93 - 6/30/03 WITHOUT SALES CHARGE WITH SALES CHARGE -------------------- ----------------- Class A $19,346 $18,425 Class B 19,233 19,233 Class D 19,258 19,067 Class Z 19,395 n/a ------------------------------------- GROWTH OF $10,000 SINCE INCEPTION (Mountain Chart) CLASS A SHARES CLASS A SHARES MERRILL LYNCH WITHOUT WITH US HIGH YIELD, SALES CHARGE SALES CHARGE CASH PAY ONLY INDEX - ---------------- --------------- ------------------- 10/1/93 10000 9525 10000 9992 9517 10188 10015 9539 10244 10112 9632 10346 10251 9764 10573 10221 9735 10497 9909 9439 10155 9738 9275 10036 9819 9352 10000 9845 9377 10037 9905 9435 10107 9968 9494 10177 10017 9542 10173 10028 9552 10198 9917 9446 10111 10019 9543 10224 10176 9692 10368 10426 9931 10691 10521 10021 10840 10756 10245 11094 11029 10505 11440 11105 10577 11527 11258 10723 11658 11278 10742 11729 11461 10916 11863 11612 11061 11947 11745 11187 12064 11934 11367 12258 12099 11525 12452 12139 11563 12471 12002 11432 12437 11985 11416 12443 11996 11426 12533 12030 11458 12608 12119 11543 12694 12349 11763 12825 12563 11966 13100 12701 12098 13244 12968 12352 13512 13060 12439 13616 13175 12549 13721 13375 12740 13913 13173 12547 13759 13328 12695 13915 13648 13000 14196 13820 13164 14412 14192 13518 14758 14179 13506 14733 14369 13687 14978 14356 13674 15076 14520 13830 15220 14717 14018 15364 14957 14247 15593 15046 14331 15657 15139 14420 15792 15215 14492 15866 15262 14537 15977 15370 14640 16057 15558 14819 16149 14940 14230 15451 15204 14482 15482 15131 14413 15228 15631 14888 15921 15635 14893 15926 15828 15076 16083 15741 14993 15961 15928 15171 16098 16041 15279 16349 15834 15082 16237 15785 15035 16206 15769 15020 16230 15681 14936 16071 15664 14920 16003 15667 14923 15909 15922 15166 16090 16007 15246 16174 15925 15169 16093 15939 15182 16108 15848 15096 15882 15921 15165 15887 15912 15156 15712 16246 15474 15981 16392 15614 16096 16669 15877 16292 16669 15877 16198 16529 15744 15723 16293 15519 15231 16744 15949 15562 17318 16496 16489 17464 16634 16750 17373 16548 16528 17331 16508 16348 17444 16615 16662 17291 16469 16319 17500 16669 16572 17727 16885 16733 17034 16225 15660 17618 16782 16121 18080 17221 16644 17856 17008 16526 17963 17110 16619 17799 16954 16459 17967 17113 16851 18051 17194 17119 18015 17159 17026 17558 16724 15816 17266 16446 15186 17534 16701 15566 17465 16636 15317 17443 16614 15188 17935 17083 16098 18053 17195 16340 18210 17345 16810 18354 17482 17027 18669 17783 17468 19093 18186 18450 19109 18201 18649 6/30/03 19346 18425 19158 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, indices are not investments, do not incur fees or expenses, and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index. Index performance is from September 30, 1993. For the six-month period ended June 30, 2003, Columbia High Yield Fund class A shares returned 7.14% without a sales charge. The fund lagged the Merrill Lynch US High Yield, Cash Pay Only Index, which returned 17.24%. The fund's focus on high quality issuers had a negative impact on relative performance during the period because lower quality issues delivered the high-yield market's strongest returns. The energy, utility and cable industries gained renewed strength following a wave of corporate scandals. Many of these utility and energy companies were able to refinance their debt at lower interest rates over longer terms, a strategy that helped strengthen their balance sheets. One notable example of this strategy of extending maturties was AES. The fund did not have an investment in AES. Although we missed out on gains from these lower-quality investments, we identified attractive opportunities in the homebuilding and the hotel sectors, which benefited the portfolio. Noteworthy contributors to performance included KB Homes, Toll Brothers, Extended Stay and Host Marriott (1.4%, 0.1%, 1.4% and 0.5% of net assets, respectively).1 CREDIT RESEARCH DRIVES SECURITY SELECTION The fund uses bottom-up credit analysis to identify high-quality companies with attractive long-term business prospects and also to stay abreast of potential negative influences in order to limit or avoid potential losses. During the period, our research led us to increase our weight in several existing holdings and to add new names based on expectations for improving margins and debt. For example, in the paper/forest products industry, we added Abitibi-Consolidated, Cascades and Stone-Container (1.2%, 0.5% and 0.8% of net assets, respectively). In the diversifed media sector, we purchased Houghton Average Annual Total Return (%) As of June 30, 2003
CLASS A CLASS B CLASS D CLASS Z - ------------------------------------------------------------------------------------------------------------ INCEPTION 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 - ------------------------------------------------------------------------------------------------------------ 6-month (cumulative) 7.14 2.02 6.69 1.69 6.80 4.80 7.34 - ------------------------------------------------------------------------------------------------------------ 1-year 10.17 4.94 9.53 4.53 9.67 7.52 10.45 - ------------------------------------------------------------------------------------------------------------ 5-year 4.71 3.70 4.58 4.29 4.61 4.40 4.76 - ------------------------------------------------------------------------------------------------------------ Since Inception 7.01 6.47 6.94 6.94 6.96 6.85 7.03 - ------------------------------------------------------------------------------------------------------------
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 - -------------------------------------------------------------------------------- Mifflin (1.2% of net assets). We also increased our position in the chemical sector, adding three new names to the portfolio including Equistar Chemicals, MacDermid and Ethyl (0.8%, 0.2% and 1.1% of net assets, respectively). Finally, in the health care industry, we purchased Apogent Technologies and Province Healthcare (0.1% and 0.8% of net assets). Ongoing credit analysis and careful portfolio monitoring also prompted us to reduce or eliminate selected holdings. For example, we sold our position in Pennzoil because we believed that its bonds had achieved fair value following the company's acquisition by Royal Dutch Shell. In addition, IMC Global, a chemical-related company, delivered weaker-than-anticipated performance and was subsequently eliminated from the portfolio. We reduced our overall exposure to homebuilders with the sale of Technical Olympic. LOOKING AHEAD We believe that a declining default rate, attractive yields and an increased focus on corporate business practices bode well for the high-yield market. High-yield investments are generally riskier, but they offer investors a compelling alternative to traditional fixed-income investments. We remain optimistic that when the economy finally recovers, these companies will be well positioned to continue to deliver attractive returns on a risk-adjusted basis. 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 June 30, 2003 (unaudited) Energy 9.5 Health care 8.6 Cable TV 7.0 Gaming 6.5 Packaging 6.4 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 June 30, 2003 (unaudited) (Pie Chart) Ba 56.0 B 42.2 Baa 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 Holdings are disclosed as of June 30, 2003 and are subject to change. 31 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- COLUMBIA DAILY INCOME COMPANY PERFORMANCE OF A $10,000 INVESTMENT 6/30/93 - 6/30/03 WITHOUT SALES CHARGE ------------ Class Z $15,001 ------------------- GROWTH OF $10,000 OVER 10 YEARS (Mountain Chart) CONSUMER PRICE CLASS Z SHARES INDEX -------------- -------------- 6/30/93 10000.00 10000.00 10021.00 10000.00 10042.00 10028.00 10062.10 10049.10 10083.30 10090.30 10103.40 10097.30 10124.60 10097.30 10146.90 10124.60 10166.20 10159.00 10189.60 10193.60 10214.00 10207.80 10242.60 10215.00 10273.40 10249.70 10306.20 10277.40 10341.30 10318.50 10376.40 10346.30 10414.80 10353.60 10454.40 10367.00 10499.40 10367.00 10546.60 10408.50 10590.90 10450.10 10640.70 10484.60 10689.60 10519.20 10739.90 10540.30 10788.20 10561.30 10837.80 10561.30 10886.60 10588.80 10933.40 10610.00 10981.50 10645.00 11028.70 10637.50 11077.30 10630.10 11124.90 10692.80 11168.30 10727.00 11213.00 10782.80 11256.70 10824.90 11301.70 10845.40 11345.80 10851.90 11392.30 10872.60 11439.00 10893.20 11484.80 10928.10 11531.90 10963.00 11578.00 10983.90 11625.50 10983.90 11673.10 11019.00 11716.30 11053.20 11764.30 11080.80 11811.40 11095.20 11861.00 11088.60 11910.80 11101.90 11962.00 11115.20 12013.50 11136.30 12062.70 11164.20 12114.60 11192.10 12165.50 11185.40 12219.00 11171.90 12272.80 11193.20 12320.60 11214.40 12372.40 11235.70 12423.10 11256.00 12475.30 11276.20 12526.40 11289.70 12580.30 11303.30 12634.40 11316.90 12687.50 11330.40 12740.80 11357.60 12790.40 11357.60 12841.60 11350.80 12891.70 11378.10 12935.50 11391.70 12983.40 11425.90 13030.10 11509.30 13078.30 11509.30 13125.40 11509.30 13175.30 11543.80 13226.70 11571.50 13278.30 11627.10 13332.70 11648.00 13387.40 11655.00 13447.60 11655.00 13509.50 11690.00 13566.20 11758.90 13628.60 11855.30 13689.90 11862.50 13757.00 11876.70 13824.40 11938.50 13896.30 11965.90 13968.60 11965.90 14038.40 12028.10 14111.40 12048.60 14182.00 12055.80 14254.30 12048.60 14325.60 12124.50 14384.30 12173.00 14444.70 12201.00 14498.20 12249.80 14547.50 12309.80 14592.60 12325.80 14634.90 12291.30 14674.40 12291.30 14709.60 12346.60 14739.00 12304.60 14762.60 12283.70 14783.30 12235.80 14801.00 12264.00 14815.80 12313.00 14832.10 12382.00 14846.90 12451.30 14861.80 12451.30 14876.70 12458.80 14891.50 12472.50 14906.40 12513.60 14919.80 12534.90 14933.30 12556.20 14945.20 12556.20 14957.20 12528.60 14966.10 12583.70 14973.60 12680.60 14981.10 12756.70 14988.60 12728.60 14997.60 12708.30 6/30/03 15001.00 12721.00 MUTUAL FUND PERFORMANCE CHANGES OVER TIME. PLEASE VISIT WWW.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 June 30, 1993, 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 six-month period ended June 30, 2003, Columbia Daily Income Company class Z shares returned 0.33%. Interest rates were low throughout the period, and in June the Federal Reserve Board cut the federal funds rate from 1.25% to 1.00%, a 45-year low. The federal funds rate is the interest rate that commercial banks charge each other on overnight loans. The Fed sets the rate level to influence consumer behavior as many other borrowing rates, such as those on mortgages and credit cards, follow its direction. Reducing short-term interest rates is also used as a stimulus to support economic recovery. With the economy still waffling, the Fed hopes its most recent move will provide a jump-start to sustainable growth. While lower interest rates may have been a welcomed move for consumers and businesses, the effect on money market funds was to bring returns on eligible portfolio securities down to an all-time low. COMMITMENT TO HIGH QUALITY Despite declining short-term rates, we remained committed to our universe of government and corporate obligations bearing the highest ratings (A1/P1). At the end of June, 25% of the portfolio was invested in government securities and 75% was in the highest quality corporate debt. In an effort to extract as much income as possible from our investments, we extended the portfolio's average maturity during the period and worked to keep fund expenses low. We do not foresee rising rates for the rest of 2003, and if rates should decline again we expect to move the fund's maturity out even further. LEONARD 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 our investment at $1 per share, it is possible to lose money by investing in the fund. AVERAGE ANNUAL TOTAL RETURN (%) As of June 30, 2003 COLUMBIA CONSUMER PRICE DAILY INCOME INDEX CLASS Z (INFLATION) - ---------------------------------------------------- 6-month (cumulative) 0.33 1.55 1-year 0.87 2.11 5-year 3.67 2.42 10-year 4.14 2.44 PORTFOLIO HIGHLIGHTS 6/30/03 Seven day current yield 0.53% Seven day effective yield 0.54% Average days to maturity 36 32 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA COMMON STOCK FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD (UNAUDITED) SIX MONTHS PERIOD ENDED ENDED JUNE 30, DECEMBER 31, CLASS A SHARES 2003 2002(a) ----------- ------------ NET ASSET VALUE, BEGINNING OF PERIOD $ 14.91 $ 15.09 ----------- ------------ INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss) (b) ............. 0.02 --(c) Net realized and unrealized gain (loss) on investments............................... 1.45 (0.11) ----------- ------------ Total from investment operations ............ 1.47 (0.11) ----------- ------------ LESS DISTRIBUTIONS: From net investment income ................... -- (0.07) ----------- ------------ NET ASSET VALUE, END OF PERIOD ................. $ 16.38 $ 14.91 ----------- ------------ TOTAL RETURN (d)(e) ............................ 9.86% (0.71)% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) ....... $ 197 $ 32 Ratio of expenses to average net assets (f)(g).. 1.37% 1.32% Ratio of net investment income (loss) to average net assets(f)(g) ...................... 0.20% (0.03)% Portfolio turnover rate ........................ 83%(e) 107% (a) Class A shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Rounds to less than $0.01 per share. (d) Total return at net asset value assuming 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 EACH PERIOD (UNAUDITED) SIX MONTHS PERIOD ENDED ENDED JUNE 30, DECEMBER 31, CLASS B SHARES 2003 2002(a) ----------- ------------ NET ASSET VALUE, BEGINNING OF PERIOD $ 14.91 $ 15.09 ----------- ------------ INCOME FROM INVESTMENT OPERATIONS: Net investment loss (b) ..................... (0.06) (0.01) Net realized and unrealized gain (loss) on investments.............................. 1.46 (0.12) ----------- ------------ Total from investment operations ........... 1.40 (0.13) ----------- ------------ LESS DISTRIBUTIONS: From net investment income .................. -- (0.05) ----------- ------------ NET ASSET VALUE, END OF PERIOD $ 16.31 $ 14.91 ----------- ------------ TOTAL RETURN (c)(d) ........................... 9.39% (0.84)% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands).................................... $ 421 $ 109 Ratio of expenses to average net .............. 2.33% 2.07% assets (e)(f) Ratio of net investment loss to average ....... (0.77)% (0.78)% net assets (e)(f) Portfolio turnover rate ....................... 83%(d) 107% (a) Class B shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge. (d) Not annualized. (e) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (f) Annualized. See Accompanying Notes to Financial Statements 33 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA COMMON STOCK FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD (UNAUDITED) SIX MONTHS PERIOD ENDED ENDED JUNE 30, DECEMBER 31, CLASS D SHARES 2003 2002(a) ----------- ------------ NET ASSET VALUE, BEGINNING OF PERIOD $ 14.92 $ 15.09 ----------- ------------ INCOME FROM INVESTMENT OPERATIONS: Net investment loss (b) ..................... (0.06) (0.01) Net realized and unrealized gain (loss) on investments ................................ 1.45 (0.11) ----------- ------------ Total from investment operations ........... 1.39 (0.12) ----------- ------------ LESS DISTRIBUTIONS: From net investment income .................. -- (0.05) ----------- ------------ NET ASSET VALUE, END OF PERIOD $ 16.31 $ 14.92 ----------- ------------ TOTAL RETURN (c)(d) ........................... 9.32% (0.77)% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) ...... $ 107 $ 30 Ratio of expenses to average net assets (e)(f). 2.53% 2.07% Ratio of net investment loss to average net assets (e)(f) ............................ (0.84)% (0.78)% Portfolio turnover rate ....................... 83%(d) 107% (a) Class D shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming all distributions reinvested and no 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
(UNAUDITED) SIX MONTHS ENDED JUNE 30, YEAR ENDED DECEMBER 31, CLASS Z SHARES 2003 2002(a) 2001 2000 1999 1998 ----------- -------- ------- -------- -------- -------- NET ASSET VALUE, BEGINNING OF PERIOD $ 14.91 $ 19.97 $ 24.34 $ 28.90 $ 24.40 $ 22.02 ----------- -------- ------- -------- -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss).................. 0.05(b) 0.07(b) 0.07 (0.01) 0.03 0.09 Net realized and unrealized gain (loss) on investments............................... 1.45 (5.05) (4.35) (1.54) 6.25 5.68 ----------- -------- ------- -------- -------- -------- Total from investment operations............. 1.50 (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 $ 16.41 $ 14.91 $ 19.97 $ 24.34 $ 28.90 $ 24.40 ----------- -------- ------- -------- -------- -------- TOTAL RETURN (c)................................ 10.06%(d) (24.92)% (17.60)% (5.73)% 25.76% 26.28% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands)........ $ 425,685 $416,638 $681,397 $895,134 $959,910 $797,147 Ratio of expenses to average net assets (e)..... 0.92%(f) 0.86% 0.80% 0.75% 0.77% 0.80% Ratio of net investment income (loss) to average net assets (e)......................... 0.63%(f) 0.43% 0.32% (0.05)% 0.09% 0.56% Portfolio turnover rate......................... 83%(d) 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) 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 GROWTH FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD (UNAUDITED) SIX MONTHS PERIOD ENDED ENDED JUNE 30, DECEMBER 31, CLASS A SHARES 2003 2002(a) ----------- ------------ NET ASSET VALUE, BEGINNING OF PERIOD $ 20.83 $ 21.52 ----------- ------------ INCOME FROM INVESTMENT OPERATIONS: Net investment loss (b)....................... (0.04) --(c) Net realized and unrealized gain (loss) on investments ................................. 2.68 (0.69) ----------- ------------ Total from investment operations............. 2.64 (0.69) ----------- ------------ NET ASSET VALUE, END OF PERIOD $ 23.47 $ 20.83 ----------- ------------ TOTAL RETURN (d)(e)............................. 12.67% (3.21)% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands)........ $ 4,063 $ 3,077 Ratioof expenses to average net assets (f)(g)... 1.34% 1.15% Ratioof net investment loss to average net assets (f)(g).................................. (0.39)% (0.36)% Portfolio turnover rate......................... 82%(e) 165% (a) Class A shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Rounds to less than $0.01 per share. (d) Total return at net asset value assuming no 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 EACH PERIOD (UNAUDITED) SIX MONTHS PERIOD ENDED ENDED JUNE 30, DECEMBER 31, CLASS B SHARES 2003 2002(a) ----------- ------------ NET ASSET VALUE, BEGINNING OF PERIOD $ 20.82 $ 21.52 ----------- ------------ INCOME FROM INVESTMENT OPERATIONS: Net investment loss (b)....................... (0.11) (0.03) Net realized and unrealized gain (loss) on investments.................................. 2.67 (0.67) ----------- ------------ Total from investment operations................ 2.56 (0.70) ----------- ------------ NET ASSET VALUE, END OF PERIOD $ 23.38 $ 20.82 ----------- ------------ TOTAL RETURN (c)(d)............................. 12.30% (3.25)% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands)........ $ 641 $ 114 Ratioof expenses to average net assets (e)(f)... 1.95% 1.88% Ratioof net investment loss to average net assets (e)(f).................................. (1.04)% (1.09)% Portfolio turnover rate......................... 82%(d) 165% (a) Class B shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming no contingent deferred sales charge. (d) Not annualized. (e) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (f) Annualized. See Accompanying Notes to Financial Statements 35 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA GROWTH FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD (UNAUDITED) SIX MONTHS PERIOD ENDED ENDED JUNE 30, DECEMBER 31, CLASS D SHARES 2003 2002(a) ----------- ------------ NET ASSET VALUE, BEGINNING OF PERIOD $ 20.82 $ 21.52 ----------- ------------ INCOME FROM INVESTMENT OPERATIONS: Net investment loss (b)....................... (0.12) (0.02) Net realized and unrealized gain (loss) on investments.................................. 2.67 (0.68) ----------- ------------ Total from investment operations............. 2.55 (0.70) ----------- ------------ NET ASSET VALUE, END OF PERIOD $ 23.37 $ 20.82 ----------- ------------ TOTAL RETURN (c)(d)............................. 12.25% (3.25)% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands)........ $ 203 $ 103 Ratioof expenses to average net assets (e)(f)... 2.05% 1.88% Ratioof net investment loss to average net assets (e)(f).................................. (1.11)% (1.09)% Portfolio turnover rate......................... 82%(d) 165% (a) Class D shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming no 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 EACH PERIOD (UNAUDITED) SIX MONTHS PERIOD ENDED ENDED JUNE 30, DECEMBER 31, CLASS G SHARES 2003 2002(a) ----------- ------------ NET ASSET VALUE, BEGINNING OF PERIOD $ 20.83 $ 21.52 ----------- ------------ INCOME FROM INVESTMENT OPERATIONS: Net investment loss (b) ...................... (0.11) (0.03) Net realized and unrealized gain (loss) on investments ................................. 2.66 (0.66) ----------- ------------ Total from investment operations ............ 2.55 (0.69) ----------- ------------ NET ASSET VALUE, END OF PERIOD ................ $ 23.38 $ 20.83 ----------- ------------ TOTAL RETURN (c)(d) ........................... 12.24% (3.21)% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) ...... $ 14,320 $ 13,705 Ratioof expenses to average net assets (e)(f) . 2.00% 1.83% Ratioof net investment loss to average net assets (e)(f) ................................ (1.05)% (1.04)% Portfolio turnover rate ....................... 82%(d) 165% (a) Class G shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming no contingent deferred sales charge. (d) Not annualized. (e) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (f) Annualized. See Accompanying Notes to Financial Statements 36 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA GROWTH FUND For a Fund Share Outstanding Throughout Each Period
(UNAUDITED) SIX MONTHS ENDED JUNE 30, YEAR ENDED DECEMBER 31, CLASS Z SHARES 2003 2002(a) 2001 2000 1999 1998 ----------- -------- ---------- ---------- ---------- ---------- NET ASSET VALUE, BEGINNING OF PERIOD $ 20.85 $ 31.35 $ 40.07 $ 48.91 $ 42.51 $ 34.34 ----------- -------- ---------- ---------- ---------- ---------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss) ........... 0.01(b) (0.01)(b) (0.02) (0.08) (0.03) 0.03 Net realized and unrealized gain (loss) on investments ................. 2.68 (10.49) (8.55) (3.49) 11.09 10.39 ----------- -------- ---------- ---------- ---------- ---------- Total from investment operations ...... 2.69 (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 $ 23.54 $ 20.85 $ 31.35 $ 40.07 $ 48.91 $ 42.51 ----------- -------- ---------- ---------- ---------- ---------- TOTAL RETURN (d) ......................... 12.90%(e) (33.49)% (21.40)% (7.94)% 26.02% 30.34% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) . $867,902 $811,648 $1,325,844 $1,919,227 $2,160,739 $1,753,024 Ratioof expenses to average net assets (f) 0.84%(g) 0.82% 0.72% 0.65% 0.65% 0.68% Ratioof net investment income (loss) to average net assets (f) .................. 0.10%(g) (0.03)% (0.07)% (0.18)% (0.07)% 0.21% Portfolio turnover rate .................. 82%(e) 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) 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 INTERNATIONAL STOCK FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD (UNAUDITED) SIX MONTHS PERIOD ENDED ENDED JUNE 30, DECEMBER 31, CLASS A SHARES 2003 2002(a) ----------- ------------ NET ASSET VALUE, BEGINNING OF PERIOD $ 10.05 $ 10.04 ----------- ------------ INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss) (b) ............. 0.05 (0.02) Net realized and unrealized gain on investments, foreign currency and foreign capital gains tax ................... 0.68 0.03 ----------- ------------ Total from investment operations ............ 0.73 0.01 ----------- ------------ NET ASSET VALUE, END OF PERIOD $ 10.78 $ 10.05 ----------- ------------ TOTAL RETURN (c)(d) ............................ 7.26% 0.10% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) ....... $ 20,616 $ 20,178 Ratio of expenses to average net assets (e)(f) . 1.83% 1.86% Ratio of net investment income (loss) to average net assets (e)(f).............................. 1.08% (0.39)% Portfolio turnover rate ........................ 24%(d) 96% (a) Class A shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming no 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 37 FINANCIAL HIGHLIGHTS COLUMBIA INTERNATIONAL STOCK FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD (UNAUDITED) SIX MONTHS PERIOD ENDED ENDED JUNE 30, DECEMBER 31, CLASS B SHARES 2003 2002(a) ----------- ------------ NET ASSET VALUE, BEGINNING OF PERIOD $ 10.02 $ 10.04 ----------- ------------ INCOME FROM INVESTMENT OPERATIONS: Net investment loss (b) ................... --(c) (0.05) Net realized and unrealized gain on investments, foreign currency and foreign capital gains tax ........................ 0.68 0.03 ----------- ------------ Total from investment operations ......... 0.68 (0.02) ----------- ------------ NET ASSET VALUE, END OF PERIOD $ 10.70 $ 10.02 ----------- ------------ TOTAL RETURN (d)(e) ......................... 6.79% (0.20)% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) .... $ 10,063 $ 10,920 Ratio of expenses to average net assets (f)(g) 2.94% 3.64% Ratio of net investment lossto average net assets (f)(g)............................... (0.06)% (2.17)% Portfolio turnover .......................... 24%(e) 96% (a) Class B shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Rounds to less than $0.01 per share. (d) Total return at net asset value assuming no contingent deferred sales charge. (e) 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 INTERNATIONAL STOCK FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD (UNAUDITED) SIX MONTHS PERIOD ENDED ENDED JUNE 30, DECEMBER 31, CLASS D SHARES 2003 2002(a) ----------- ------------ NET ASSET VALUE, BEGINNING OF PERIOD $ 10.02 $ 10.04 ----------- ------------ INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss) (b) .......... 0.02 (0.04) Net realized and unrealized gain on investments, foreign currency and foreign capital gains tax ........................ 0.69 0.02 ----------- ------------ Total from investment operations ............ 0.71 (0.02) ----------- ------------ NET ASSET VALUE, END OF PERIOD $ 10.73 $ 10.02 ----------- ------------ TOTAL RETURN (c)(d).......................... 7.09% (0.20)% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands ..... $ 564 $ 542 Ratio of expenses to average net assets (e)(f) 2.44% 3.48% Ratio of net investment income (loss) to average net assets (e)(f) .................. 0.51% (2.01)% Portfolio turnover .......................... 24%(d) 96% (a) Class D shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming no 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 EACH PERIOD
(UNAUDITED) SIX MONTHS ENDED JUNE 30, YEAR ENDED DECEMBER 31, CLASS Z SHARES 2003 2002(a) 2001 2000 1999 1998 ----------- --------- --------- --------- --------- --------- NET ASSET VALUE, BEGINNING OF PERIOD $ 10.05 $ 12.03 $ 14.77 $ 22.81 $ 15.45 $ 13.70 ----------- --------- --------- --------- --------- --------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss) ............ 0.08(b) --(b)(c) 0.01 (0.04) (0.05) --(c) Net realized and unrealized gain (loss) on investments, foreign currency and foreign capital gains tax .............. 0.70 (1.94) (2.74) (5.17) 9.00 1.76 ----------- --------- --------- --------- --------- --------- Total from investment operations ...... 0.78 (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 $ 10.83 $ 10.05 $ 12.03 $ 14.77 $ 22.81 $ 15.45 ----------- --------- --------- --------- --------- --------- TOTAL RETURN (d) .......................... 7.76%(e) (16.10)% (18.47)% (22.64)% 57.93% 12.83% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands ... $ 205,899 $ 143,332 $ 135,626 $ 175,316 $ 239,223 $ 134,193 Ratio of expenses to average net assets (f) 1.30%(g) 1.49% 1.56% 1.42% 1.48% 1.56% Ratio of net investment income (loss) to average net assets(f) .................... 1.68%(g) (0.02)% 0.06% (0.19)% (0.35)% (0.02)% Portfolio turnover rate ................... 24%(e) 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) 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 39 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA SPECIAL FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD (UNAUDITED) SIX MONTHS PERIOD ENDED ENDED JUNE 30, DECEMBER 31, CLASS A SHARES 2003 2002(a) ----------- ------------ NET ASSET VALUE, BEGINNING OF PERIOD $ 14.77 $ 15.15 ----------- ------------ INCOME FROM INVESTMENT OPERATIONS: Net investment loss (b) ................... (0.10) (0.02) Net realized and unrealized gain (loss) on investments .................... 2.16 (0.36) ----------- ------------ Total from Investment Operations ......... 2.06 (0.38) ----------- ------------ NET ASSET VALUE, END OF PERIOD $ 16.83 $ 14.77 ----------- ------------ TOTAL RETURN (c)(d) ......................... 13.95% (2.51)% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) .... $ 3,279 $ 1,180 Ratioof expenses to average net assets (e)(f) 1.58% 1.49% Ratioof net investment loss to average net assets (e)(f) .............................. (1.28)% (1.22)% Portfolio turnover rate ..................... 66%(d) 88% (a) Class A shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming no 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 SPECIAL FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD (UNAUDITED) SIX MONTHS PERIOD ENDED ENDED JUNE 30, DECEMBER 31, CLASS B SHARES 2003 2002(a) ----------- ------------ NET ASSET VALUE, BEGINNING OF PERIOD $ 14.76 $ 15.15 ----------- ------------ INCOME FROM INVESTMENT OPERATIONS: Net investment loss (b) .................. (0.15) (0.04) Net realized and unrealized gain (loss) on investments ................... 2.15 (0.35) ----------- ------------ Total from Investment Operations ........ 2.00 (0.39) ----------- ------------ NET ASSET VALUE, END OF PERIOD $ 16.76 $ 14.76 ----------- ------------ TOTAL RETURN (c)(d) ........................ 13.55% (2.57)% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) ................................ $ 3,960 $ 3,383 Ratioof expenses to average net assets (e)(f) 2.33% 2.32% Ratioof net investment loss to average net assets (e)(f) ............................. (2.03)% (2.05)% Portfolio turnover rate .................... 66%(d) 88% (a) Class B shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming no contingent deferred sales charge. (d) Not annualized. (e) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (f) Annualized. See Accompanying Notes to Financial Statements 40 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA SPECIAL FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD (UNAUDITED) SIX MONTHS PERIOD ENDED ENDED JUNE 30, DECEMBER 31, CLASS D SHARES 2003 2002(a) ----------- ------------ NET ASSET VALUE, BEGINNING OF PERIOD $ 14.76 $ 15.15 ----------- ------------ INCOME FROM INVESTMENT OPERATIONS: Net investment loss (b) ................... (0.15) (0.04) Net realized and unrealized gain (loss) on investments .................... 2.14 (0.35) ----------- ------------ Total from Investment Operations ........ 1.99 (0.39) ----------- ------------ NET ASSET VALUE, END OF PERIOD $ 16.75 $ 14.76 ----------- ------------ TOTAL RETURN (c)(d) ......................... 13.48% (2.57)% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) ................................. $ 677 $ 433 Ratioof expenses to average net assets (e)(f) 2.24% 2.32% Ratioof net investment loss to average net assets (e)(f)............................... (1.94)% (2.05)% Portfolio turnover rate ..................... 66%(d) 88% (a) Class D shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming no 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 SPECIAL FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD (UNAUDITED) SIX MONTHS PERIOD ENDED ENDED JUNE 30, DECEMBER 31, CLASS G SHARES 2003 2002(a) ----------- ------------ NET ASSET VALUE, BEGINNING OF PERIOD $ 14.77 $ 15.15 ----------- ------------ INCOME FROM INVESTMENT OPERATIONS: Net investment loss (b) ................... (0.16) (0.04) Net realized and unrealized gain (loss) on investments .................... 2.14 (0.34) ----------- ------------ Total from Investment Operations ......... 1.98 (0.38) ----------- ------------ NET ASSET VALUE, END OF PERIOD $ 16.75 $ 14.77 ----------- ------------ TOTAL RETURN (c)(d) ......................... 13.41% (2.51)% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) ................................. $ 760 $ 753 Ratioof expenses to average net assets (e)(f) ..................................... 2.45% 2.35% Ratioof net investment loss to average net assets(e)(f) ............................... (2.15)% (2.08)% Portfolio turnover rate ..................... 66%(d) 88% (a) Class G shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming no contingent deferred sales charge. (d) Not annualized. (e) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (f) Annualized. See Accompanying Notes to Financial Statements 41 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA SPECIAL FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD (UNAUDITED) SIX MONTHS PERIOD ENDED ENDED JUNE 30, DECEMBER 31, CLASS T SHARES 2003 2002(a) ----------- ------------ NET ASSET VALUE, BEGINNING OF PERIOD $ 14.79 $ 15.15 ----------- ------------ INCOME FROM INVESTMENT OPERATIONS: Net investment loss (b) ................... (0.09) (0.02) Net realized and unrealized gain (loss) on investments .................... 2.16 (0.34) ----------- ------------ Total from Investment Operations ......... 2.07 (0.36) ----------- ------------ NET ASSET VALUE, END OF PERIOD $ 16.86 $ 14.79 ----------- ------------ TOTAL RETURN (c)(d) ......................... 14.00% (2.38)% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands)................................... $ 28,360 $ 25,966 Ratioof expenses to average net assets(e)(f) 1.44% 1.45% Ratioof net investment loss to average net assets (e)(f) .............................. (1.14)% (1.18)% Portfolio turnover rate ..................... 66%(d) 88% (a) Class T shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming no 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
(UNAUDITED) SIX MONTHS ENDED JUNE 30, YEAR ENDED DECEMBER 31, CLASS Z SHARES 2003 2002(a) 2001 2000 1999 1998 ----------- --------- --------- ----------- --------- --------- NET ASSET VALUE, BEGINNING OF PERIOD $ 14.79 $ 19.60 $ 25.99 $ 29.93 $ 23.62 $ 20.26 ----------- --------- --------- ----------- --------- --------- INCOME FROM INVESTMENT OPERATIONS: Net investment loss .................... (0.06)(b) (0.13)(b) (0.11) (0.10) (0.16) (0.03) Net realized and unrealized gain (loss) on investments ........................ 2.16 (4.68) (5.35) 4.45 8.74 3.40 ----------- --------- --------- ----------- --------- --------- Total from Investment Operations ...... 2.10 (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 $ 16.89 $ 14.79 $ 19.60 $ 25.99 $ 29.93 $ 23.62 ----------- --------- --------- ----------- --------- --------- TOTAL RETURN (d) ......................... 14.20%(e) (24.54)% (20.98)% 13.84% 36.33% 16.64% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) . $ 924,965 $ 807,342 $ 786,071 $ 1,095,525 $ 918,322 $ 969,359 Ratioof expenses to average net assets (f) 1.07%(g) 1.12% 1.08% 0.99% 1.09% 1.03% Ratioof net investment loss to average net assets (f) .................. (0.77)%(g) (0.85)% (0.49)% (0.38)% (0.64)% (0.09)% Portfolio turnover rate .................. 66%(e) 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) 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 43 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA SMALL CAP FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED) SIX MONTHS ENDED JUNE 30, YEAR ENDED DECEMBER 31, CLASS Z SHARES 2003 2002(a) 2001 2000 1999 1998 ----------- --------- -------- --------- --------- --------- NET ASSET VALUE, BEGINNING OF PERIOD $ 16.30 $ 22.20 $ 25.87 $ 27.26 $ 17.43 $ 16.65 ----------- --------- -------- --------- --------- --------- INCOME FROM INVESTMENT OPERATIONS: Net investment loss..................... (0.09)(b) (0.17)(b) (0.13) (0.10) (0.14) (0.09) Net realized and unrealized gain (loss) on investments......................... 3.53 (5.73) (3.54) 1.75 10.45 0.87 ----------- --------- -------- --------- --------- --------- Total from investment operations 3.44 (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 $ 19.74 $ 16.30 $ 22.20 $ 25.87 $ 27.26 $ 17.43 ----------- --------- -------- --------- --------- --------- TOTAL RETURN (d).......................... 21.10%(e) (26.58)% (14.19)% 5.85% 59.15% 4.69% ----------- --------- -------- --------- --------- --------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands).. $ 558,696 $ 493,031 $617,966 $ 518,970 $ 290,374 $ 160,472 Ratio of expenses to average net assets(f) 1.26%(g) 1.24% 1.23% 1.22% 1.30% 1.34% Ratio of net investment loss to average net assets (f)........................... (1.07)%(g) (0.90)% (0.71)% (0.44)% (0.84)% (0.68)% Portfolio turnover rate................... 58%(e) 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) 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 REAL ESTATE EQUITY FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD (UNAUDITED) SIX MONTHS PERIOD ENDED ENDED JUNE 30, DECEMBER 31, CLASS A SHARES 2003 2002(a) ------------ ------------ NET ASSET VALUE, BEGINNING OF PERIOD $ 17.80 $ 17.01 ------------ ------------ INCOME FROM INVESTMENT OPERATIONS: Net investment income (b).................... 0.29 0.26 Net realized and unrealized gain on investments ................................ 1.80 0.78 ------------ ------------ Total from investment operations............ 2.09 1.04 ------------ ------------ LESS DISTRIBUTIONS: From net investment income................... (0.23) (0.25) ------------ ------------ NET ASSET VALUE, END OF PERIOD $ 19.66 $ 17.80 ------------ ------------ TOTAL RETURN (c)(d)............................ 11.78% 6.10% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands)....... $ 7,902 $ 905 Ratio of expenses to average net assets (e)(f). 1.65% 1.43% Ratio of net investment income to average net assets (e)(f)................................. 3.09% 4.81% Portfolio turnover rate........................ 28%(d) 53% (a) Class A shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming all distributions reinvested and no 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 44 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA REAL ESTATE EQUITY FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD (UNAUDITED) SIX MONTHS PERIOD ENDED ENDED JUNE 30, DECEMBER 31, CLASS B SHARES 2003 2002(a) ------------ ------------ NET ASSET VALUE, BEGINNING OF PERIOD $ 17.82 $ 17.01 ------------ ------------ INCOME FROM INVESTMENT OPERATIONS: Net investment income (b) ................... 0.20 0.22 Net realized and unrealized gain on investments ................................ 1.81 0.81 ------------ ------------ Total from investment operations ........... 2.01 1.03 ------------ ------------ LESS DISTRIBUTIONS: From net investment income .................. (0.15) (0.22) ------------ ------------ NET ASSET VALUE, END OF PERIOD $ 19.68 $ 17.82 ------------ ------------ TOTAL RETURN (c)(d) ........................... 11.34% 6.09% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) ...... $ 3,810 $ 1,074 Ratio of expenses to average net assets (e)(f) 2.46% 2.18% Ratio of net investment income to average net assets (e)(f) ................................ 2.21% 4.06% Portfolio turnover rate ....................... 28%(d) 53% (a) Class B shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge. (d) Not annualized. (e) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (f) Annualized. COLUMBIA REAL ESTATE EQUITY FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD (UNAUDITED) SIX MONTHS PERIOD ENDED ENDED JUNE 30, DECEMBER 31, CLASS D SHARES 2003 2002(a) ------------ ------------ NET ASSET VALUE, BEGINNING OF PERIOD $ 17.82 $ 17.01 ------------ ------------ INCOME FROM INVESTMENT OPERATIONS: Net investment income (b) ................... 0.22 0.21 Net realized and unrealized gain on investments ................................ 1.80 0.82 ------------ ------------ Total from investment operations ........... 2.02 1.03 ------------ ------------ LESS DISTRIBUTIONS: From net investment income .................. (0.16) (0.22) ------------ ------------ NET ASSET VALUE, END OF PERIOD $ 19.68 $ 17.82 ------------ ------------ TOTAL RETURN (c)(d) ........................... 11.35% 6.09% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) ...... $ 2,633 $ 365 Ratio of expenses to average net assets (e)(f) 2.41% 2.18% Ratio of net investment income to average net assets (e)(f) ................................ 2.41% 4.06% Portfolio turnover rate ....................... 28%(d) 53% (a) Class D shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming all distributions reinvested and no 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 45 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA REAL ESTATE EQUITY FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED) SIX MONTHS ENDED JUNE 30, YEAR ENDED DECEMBER 31, CLASS Z SHARES 2003 2002(a) 2001 2000 1999 1998 ----------- --------- --------- --------- --------- --------- NET ASSET VALUE, BEGINNING OF PERIOD $ 17.81 $ 18.04 $ 17.89 $ 14.57 $ 15.76 $ 18.80 ----------- --------- --------- --------- --------- --------- INCOME FROM INVESTMENT OPERATIONS: Net investment income.................... 0.32(b) 0.82(b) 0.79 0.81 0.82 0.75 Net realized and unrealized gain (loss) on investments.......................... 1.82 (0.25) 0.15 3.32 (1.19) (3.04) ----------- --------- --------- --------- --------- --------- Total from investment operations........ 2.14 0.57 0.94 4.13 (0.37) (2.29) ----------- --------- --------- --------- --------- --------- LESS DISTRIBUTIONS: From net investment income............... (0.28) (0.71) (0.72) (0.75) (0.71) (0.66) From net realized gains.................. -- (0.09) (0.07) (0.06) (0.11) (0.09) ----------- --------- --------- --------- --------- --------- Total distributions..................... (0.28) (0.80) (0.79) (0.81) (0.82) (0.75) ----------- --------- --------- --------- --------- --------- NET ASSET VALUE, END OF PERIOD $ 19.67 $ 17.81 $ 18.04 $ 17.89 $ 14.57 $15.76 ----------- --------- --------- --------- --------- --------- TOTAL RETURN (c)........................... 12.09%(d) 3.12% 5.41% 28.84% (2.45)% (12.33)% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands)... $ 818,610 $ 774,646 $ 621,590 $ 436,764 $ 241,716 $ 164,172 Ratio of expenses to average net assets (e) 1.06%(f) 0.94% 0.95% 0.96% 0.99% 1.01% Ratio of net investment income to average net assets (e)............................ 3.50%(f) 5.30% 4.65% 5.16% 5.66% 4.60% Portfolio turnover rate.................... 28%(d) 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) 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 46 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA TECHNOLOGY FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD (UNAUDITED) SIX MONTHS PERIOD ENDED ENDED JUNE 30, DECEMBER 31, CLASS A SHARES 2003 2002(a) ----------- ------------ NET ASSET VALUE, BEGINNING OF PERIOD $ 3.79 $ 3.82 ----------- ------------ INCOME FROM INVESTMENT OPERATIONS: Net investment loss (b) .................... (0.03) (0.01) Net realized and unrealized gain (loss) on investments ............................ 1.23 (0.02) ----------- ------------ Total from investment operations .......... 1.20 (0.03) ----------- ------------ NET ASSET VALUE, END OF PERIOD $ 4.99 $ 3.79 ----------- ------------ TOTAL RETURN (c)(d)(e) ....................... 31.66% (0.79)% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) ..... $ 256 $ 1 Ratio of expenses to average net assets (f)(g) 1.90% 1.76% Ratio of net investment loss to average net assets (f)(g) ........................... (1.46)% (1.35)% Waiver/reimbursement (g) ..................... 2.75% 1.24% Portfolio turnover rate ...................... 431%(e) 512% (a) Class A shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming no 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 (UNAUDITED) SIX MONTHS PERIOD ENDED ENDED JUNE 30, DECEMBER 31, CLASS B SHARES 2003 2002(a) ----------- ------------ NET ASSET VALUE, BEGINNING OF PERIOD $ 3.78 $ 3.82 ----------- ------------ INCOME FROM INVESTMENT OPERATIONS: Net investment loss (b) ...................... (0.06) (0.01) Net realized and unrealized gain (loss) on investments............................... 1.23 (0.03) ----------- ------------ Total from investment operations 1.17 (0.04) ----------- ------------ NET ASSET VALUE, END OF PERIOD ................. $ 4.95 $ 3.78 ----------- ------------ TOTAL RETURN (c)(d)(e) ......................... 30.95% (1.05)% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) ....... $ 996 $ 7 Ratio of expenses to average net assets (f)(g) . 2.65% 2.51% Ratio of net investment loss to average net assets (f)(g) ................................. (2.39)% (2.10)% Waiver/reimbursement (g) ....................... 3.70% 1.24% Portfolio turnover rate ........................ 431%(e) 512% (a) Class B shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming no contingent deferred sales charge. (d) Had the 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 47 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA TECHNOLOGY FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD (UNAUDITED) SIX MONTHS PERIOD ENDED ENDED JUNE 30, DECEMBER 31, CLASS D SHARES 2003 2002(a) ----------- ------------ NET ASSET VALUE, BEGINNING OF PERIOD $ 3.78 $ 3.82 ----------- ------------ INCOME FROM INVESTMENT OPERATIONS: Net investment loss (b) ...................... (0.05) (0.01) Net realized and unrealized gain (loss) on investments .............................. 1.25 (0.03) ----------- ------------ Total from investment operations ............ 1.20 (0.04) ----------- ------------ NET ASSET VALUE, END OF PERIOD $ 4.98 $ 3.78 ----------- ------------ TOTAL RETURN (c)(d)(e) ......................... 31.75% (1.05)% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) ....... $ 10 $ 1 Ratio of expenses to average net assets (f)(g) . 2.65% 2.51% Ratio of net investment loss to average net assets (f)(g) ............................. (2.17)% (2.10)% Waiver/reimbursement (g) ....................... 3.32% 1.24% Portfolio turnover rate ........................ 431%(e) 512% (a) Class D shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming no 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
(UNAUDITED) SIX MONTHS YEAR PERIOD ENDED ENDED ENDED JUNE 30, DECEMBER 31, DECEMBER 31, CLASS Z SHARES 2003 2002(a) 2001 2000(b) ----------- --------- -------- ------------ NET ASSET VALUE, BEGINNING OF PERIOD $ 3.79 $ 6.13 $ 8.63 $ 10.00 ----------- --------- -------- ------------ INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)............. (0.03)(c) (0.06)(c) (0.08) 0.01 Net realized and unrealized gain (loss) on investments ......................... 1.25 (2.28) (2.42) (1.37) ----------- --------- -------- ------------ Total from investment operations........ 1.22 (2.34) (2.50) (1.36) ----------- --------- -------- ------------ LESS DISTRIBUTIONS: From net investment income............... -- -- -- (0.01) ----------- --------- -------- ------------ NET ASSET VALUE, END OF PERIOD $ 5.01 $ 3.79 $ 6.13 $ 8.63 ----------- --------- -------- ------------ TOTAL RETURN (d)(e)........................ 32.19%(f) (38.17)% (28.97)% (13.78)%(f) RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands)... $ 13,443 $ 8,055 $ 10,385 $ 4,327 Ratio of expenses to average net assets (g) 1.65%(h) 1.65% 1.69% 1.48%(h) Ratio of net investment income (loss) to average net assets (g).................... (1.29)%(h) (1.24)% (1.26)% 0.99%(h) Waiver/reimbursement ...................... 2.16%(h) 1.33% 1.13% 7.49%(h) Portfolio turnover rate.................... 431%(f) 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, total return and portfolio turnover rate reflect 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 48 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA STRATEGIC VALUE FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD (UNAUDITED) SIX MONTHS PERIOD ENDED ENDED JUNE 30, DECEMBER 31, CLASS A SHARES 2003 2002(a) ----------- ------------ NET ASSET VALUE, BEGINNING OF PERIOD $ 13.13 $ 12.72 ----------- ------------ INCOME FROM INVESTMENT OPERATIONS: Net investment income (b)................... 0.05 0.01 Net realized and unrealized gain on investments and foreign currency........... 1.74 0.40 ----------- ------------ Total from investment operations........... 1.79 0.41 ----------- ------------ NET ASSET VALUE, END OF PERIOD $ 14.92 $ 13.13 ----------- ------------ TOTAL RETURN (c)(d)........................... 13.63% 3.22% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands)...... $ 56,754 $ 53,526 Ratio of expenses to average net assets (e)(f) 1.22% 1.21% Ratio of net investment income to average net assets (e)(f)................................ 0.81% 0.64% Portfolio turnover rate ...................... 48%(d) 188% (a) Class A shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming no 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 EACH PERIOD (UNAUDITED) SIX MONTHS PERIOD ENDED ENDED JUNE 30, DECEMBER 31, CLASS B SHARES 2003 2002(a) ----------- ------------ NET ASSET VALUE, BEGINNING OF PERIOD $ 13.10 $ 12.72 ----------- ------------ INCOME FROM INVESTMENT OPERATIONS: Net investment loss (b)..................... (0.01) (0.01) Net realized and unrealized gain on investments and foreign currency........... 1.73 0.39 ----------- ------------ Total from investment operations........... 1.72 0.38 ----------- ------------ NET ASSET VALUE, END OF PERIOD $ 14.82 $ 13.10 ----------- ------------ TOTAL RETURN (c)(d)........................... 13.13% 2.99% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands)...... $ 2,876 $ 2,350 Ratio of expenses to average net assets (e)(f) 2.15% 2.36% Ratio of net investment loss to average net assets (e)(f)............................ (0.12)% (0.51)% Portfolio turnover rate ...................... 48%(d) 188% (a) Class B shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming no contingent deferred sales charge. (d) Not annualized. (e) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (f) Annualized. See Accompanying Notes to Financial Statements 49 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA STRATEGIC VALUE FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD (UNAUDITED) SIX MONTHS PERIOD ENDED ENDED JUNE 30, DECEMBER 31, CLASS D SHARES 2003 2002(a) ----------- ------------ NET ASSET VALUE, BEGINNING OF PERIOD $ 13.11 $ 12.72 ----------- ------------ INCOME FROM INVESTMENT OPERATIONS: Net investment loss (b)..................... (0.01) (0.01) Net realized and unrealized gain on investments and foreign currency........... 1.71 0.40 ----------- ------------ Total from investment operations........... 1.70 0.39 ----------- ------------ NET ASSET VALUE, END OF PERIOD $ 14.81 $ 13.11 ----------- ------------ TOTAL RETURN (c)(d)........................... 12.97% 3.07% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands)...... $ 696 $ 355 Ratio of expenses to average net assets(e)(f) 2.24% 2.28% Ratio of net investment loss to average net assets (e)(f)................................ (0.21)% (0.43)% Portfolio turnover rate....................... 48%(d) 188% (a) Class D shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming no 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 50 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA STRATEGIC VALUE FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED) SIX MONTHS YEAR PERIOD ENDED ENDED ENDED JUNE 30, DECEMBER 31, DECEMBER 31, CLASS Z SHARES 2003 2002(a) 2001 2000(b) ----------- --------- --------- ------------ NET ASSET VALUE, BEGINNING OF PERIOD $ 13.14 $ 14.52 $ 11.23 $ 10.00 ----------- --------- --------- ------------ INCOME FROM INVESTMENT OPERATIONS: Net investment income....................... 0.07(c) 0.10(c) 0.05 0.02 Net realized and unrealized gain (loss) on investments and foreign currency........ 1.73 (1.35) 3.29 1.23 ----------- --------- --------- ------------ Total from investment operations........... 1.80 (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 $ 14.94 $ 13.14 $ 14.52 $ 11.23 ----------- --------- --------- ------------ TOTAL RETURN (d).............................. 13.70%(e) (8.56)% 29.76% 12.25%(e)(f) RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands)...... $ 204,875 $ 209,610 $ 139,504 $ 9,526 Ratio of expenses to average net assets (g)... 1.00%(h) 1.23% 1.13% 1.34%(h) Ratio of net investment income to average net assets (g)....................... 1.02%(h) 0.62% 0.71% 1.92%(h) Waiver/reimbursement.......................... -- -- -- 3.97%(h) Portfolio turnover rate....................... 48%(e) 188% 278% 64%(e)
(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, total return and portfolio turnover rate reflect activity from that date. (c) Per share data was calculated using average shares outstanding during the period. (d) Total return at net asset value assuming all distributions reinvested. (e) Not annualized. (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%. (h) Annualized. See Accompanying Notes to Financial Statements 51 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA BALANCED FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD (UNAUDITED) SIX MONTHS PERIOD ENDED ENDED JUNE 30, DECEMBER 31, CLASS A SHARES 2003 2002(a) ----------- ------------ NET ASSET VALUE, BEGINNING OF PERIOD $ 17.52 $ 17.58 ----------- ------------ INCOME FROM INVESTMENT OPERATIONS: Net investment income (b)................... 0.14 0.03 Net realized and unrealized gain (loss) on investments................................ 1.20 --(c) ----------- ------------ Total from investment operations........... 1.34 0.03 ----------- ------------ LESS DISTRIBUTIONS: From net investment income.................. (0.14) (0.09) ----------- ------------ NET ASSET VALUE, END OF PERIOD................ $ 18.72 $ 17.52 ----------- ------------ TOTAL RETURN (d)(e)........................... 7.71% 0.19% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands)...... $ 420 $ 146 Ratio of expenses to average net assets (f)(g) 1.38% 1.17% Ratio of net investment income to average net assets (f)(g)................................ 1.53% 2.03% Portfolio turnover rate....................... 87%(e) 98% (a) Class A shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Rounds to less than $0.01 per share. (d) Total return at net asset value assuming 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 EACH PERIOD (UNAUDITED) SIX MONTHS PERIOD ENDED ENDED JUNE 30, DECEMBER 31, CLASS B SHARES 2003 2002(a) ----------- ------------ NET ASSET VALUE, BEGINNING OF PERIOD $ 17.52 $ 17.58 ----------- ------------ INCOME FROM INVESTMENT OPERATIONS: Net investment income (b)................... 0.07 0.02 Net realized and unrealized gain (loss) on investments................................ 1.21 (0.01) ----------- ------------ Total from investment operations........... 1.28 0.01 ----------- ------------ LESS DISTRIBUTIONS: From net investment income.................... (0.08) (0.07) ----------- ------------ NET ASSET VALUE, END OF PERIOD $ 18.72 $ 17.52 ----------- ------------ TOTAL RETURN (c)(d)........................... 7.31% 0.06% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands)...... $ 2,608 $ 608 Ratio of expenses to average net assets (e)(f) 2.13% 1.92% Ratio of net investment income to average net assets (e)(f)............................... 0.78% 1.28% Portfolio turnover rate....................... 87%(d) 98% (a) Class B shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge. (d) Not annualized. (e) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (f) Annualized. See Accompanying Notes to Financial Statements 52 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA BALANCED FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD (UNAUDITED) SIX MONTHS PERIOD ENDED ENDED JUNE 30, DECEMBER 31, CLASS D SHARES 2003 2002(a) ----------- ------------ NET ASSET VALUE, BEGINNING OF PERIOD $ 17.51 $ 17.58 ----------- ------------ INCOME FROM INVESTMENT OPERATIONS: Net investment income (b)................... 0.10 0.02 Net realized and unrealized gain (loss) on investments................................ 1.20 (0.02) ----------- ------------ Total from investment operations........... 1.30 -- ----------- ------------ LESS DISTRIBUTIONS: From net investment income.................. (0.09) (0.07) ----------- ------------ NET ASSET VALUE, END OF PERIOD $ 18.72 $ 17.51 ----------- ------------ TOTAL RETURN (c)(d)........................... 7.43% 0.01% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands)...... $ 674 $ 446 Ratio of expenses to average net assets (e)(f) 1.85% 1.92% Ratio of net investment income to average net assets (e)(f)................................ 1.06% 1.28% Portfolio turnover rate....................... 87%(d) 98% (a) Class D shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming all distributions reinvested and no 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 53 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA BALANCED FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED) SIX MONTHS ENDED JUNE 30, YEAR ENDED DECEMBER 31, CLASS Z SHARES 2003 2002(a) 2001 2000 1999 1998 ----------- --------- --------- ----------- ---------- ---------- NET ASSET VALUE, BEGINNING OF PERIOD $ 17.51 $ 20.67 $ 22.96 $ 24.72 $ 23.17 $ 21.42 ----------- --------- --------- ----------- ---------- ---------- INCOME FROM INVESTMENT OPERATIONS: Net investment income....................... 0.20(b) 0.47(b) 0.57(c) 0.67 0.69 0.72 Net realized and unrealized gain (loss) on investments ............................ 1.20 (3.13) (2.27)(c) (0.41) 2.21 3.52 ----------- --------- --------- ----------- ---------- ---------- Total from investment operations........... 1.40 (2.66) (1.70) 0.26 2.90 4.24 ----------- --------- --------- ----------- ---------- ---------- LESS DISTRIBUTIONS: From net investment income.................. (0.20) (0.50) (0.59) (0.68) (0.69) (0.73) From net realized gains..................... -- -- -- (1.34) (0.66) (1.76) ----------- --------- --------- ----------- ---------- ---------- Total distributions........................ (0.20) (0.50) (0.59) (2.02) (1.35) (2.49) ----------- --------- --------- ----------- ---------- ---------- NET ASSET VALUE, END OF PERIOD $ 18.71 $ 17.51 $ 20.67 $ 22.96 $ 24.72 $ 23.17 ----------- --------- --------- ----------- ---------- ---------- TOTAL RETURN (d).............................. 8.04%(e) (12.97)% (7.40)% 0.82% 12.70% 20.07% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands)...... $ 643,575 $ 668,290 $ 983,749 $ 1,126,854 $1,040,940 $ 975,381 Ratio of expenses to average net assets (f)... 0.71%(g) 0.70% 0.67% 0.65% 0.66% 0.67% Ratio of net investment income to average net assets (f)............................... 2.20%(g) 2.50% 2.70%(c) 2.73% 2.85% 3.22% Portfolio turnover rate....................... 87%(e) 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 premium and accreting discount on all debt securities. The effect of this change for the year ended December 31, 2001, was to decrease net investment income per share by $0.01, decrease net realized and unrealized loss per share by $0.01 and decrease the ratio of net investment income to average net assets from 2.73% to 2.70%. Per share data and ratios for periods prior to December 31, 2001 have not been restated to reflect this change in presentation. (d) Total return at net asset value assuming all distributions reinvested. (e) Not annualized. (f) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (g) Annualized. See Accompanying Notes to Financial Statements 54 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA SHORT TERM BOND FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD (UNAUDITED) SIX MONTHS ENDED PERIOD ENDED JUNE 30, DECEMBER 31, CLASS A SHARES 2003 2002(a) ------------- ------------ NET ASSET VALUE, BEGINNING OF PERIOD $ 8.67 $ 8.63 ------------- ------------ INCOME FROM INVESTMENT OPERATIONS: Net investment income (b) ...................... 0.10 0.04 Net realized and unrealized gain on investments. 0.09 0.04 ------------- ------------ Total from investment operations .............. 0.19 0.08 ------------- ------------ LESS DISTRIBUTIONS: From net investment income ..................... (0.10) (0.04) ------------- ------------ NET ASSET VALUE, END OF PERIOD $ 8.76 $ 8.67 ------------- ------------ TOTAL RETURN (c)(d) .............................. 2.20% 0.94% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) ......... $ 37,617 $ 5,543 Ratio of expenses to average net assets (e)(f).... 0.96% 1.00% Ratio of net investment income to average net assets (e)(f) .................................... 2.21% 3.53% Portfolio turnover rate .......................... 98%(d) 182% (a) Class A shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming all distributions reinvested and no 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 55 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA SHORT TERM BOND FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD (UNAUDITED) SIX MONTHS ENDED PERIOD ENDED JUNE 30, DECEMBER 31, CLASS B SHARES 2003 2002(a) ------------- ------------ NET ASSET VALUE, BEGINNING OF PERIOD $ 8.67 $ 8.63 ------------- ------------ INCOME FROM INVESTMENT OPERATIONS: Net investment income (b) ..................... 0.06 0.03 Net realized and unrealized gain on investments 0.10 0.04 ------------- ------------ Total from investment operations .............. 0.16 0.07 ------------- ------------ LESS DISTRIBUTIONS: From net investment income ..................... (0.07) (0.03) ------------- ------------ NET ASSET VALUE, END OF PERIOD $ 8.76 $ 8.67 ------------- ------------ TOTAL RETURN (c)(d) .............................. 1.85% 0.77% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) ......... $ 26,524 $ 6,261 Ratio of expenses to average net assets (e)(f) 1.75% 1.75% Ratio of net investment income to average net assets (e)(f) .................................... 1.42% 2.78% Portfolio turnover rate .......................... 98%(d) 182% (a) Class B shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge. (d) Not annualized. (e) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (f) Annualized. See Accompanying Notes to Financial Statements 56 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA SHORT TERM BOND FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD (UNAUDITED) SIX MONTHS ENDED PERIOD ENDED JUNE 30, DECEMBER 31, CLASS D SHARES 2003 2002(a) ------------ ------------ NET ASSET VALUE, BEGINNING OF PERIOD $ 8.67 $ 8.63 ------------ ------------ INCOME FROM INVESTMENT OPERATIONS: Net investment income (b) ..................... 0.09 0.04 Net realized and unrealized gain on investments 0.09 0.04 ------------ ------------ Total from investment operations ............ 0.18 0.08 ------------ ------------ LESS DISTRIBUTIONS: From net investment income .................... (0.09) (0.04) ------------ ------------ NET ASSET VALUE, END OF PERIOD $ 8.76 $ 8.67 ------------ ------------ TOTAL RETURN (c)(d)(e) .......................... 2.13% 0.88% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) ........ $ 17,379 $ 5,223 Ratio of expenses to average net assets (f)(g) .. 1.15% 1.15% Ratio of net investment income to average net assets (f)(g) ................................... 2.02% 3.38% Waiver/reimbursement (g) ........................ 0.60% 0.64% Portfolio turnover rate ......................... 98%(e) 182% (a) Class D shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming all distributions reinvested and no 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 57 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA SHORT TERM BOND FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD (UNAUDITED) SIX MONTHS ENDED PERIOD ENDED JUNE 30, DECEMBER 31, CLASS G SHARES 2003 2002(a) ------------ ------------ NET ASSET VALUE, BEGINNING OF PERIOD $ 8.67 $ 8.63 ------------ ------------ INCOME FROM INVESTMENT OPERATIONS: Net investment income (b) ..................... 0.07 0.03 Net realized and unrealized gain on investments 0.10 0.04 ------------ ------------ Total from investment operations ............ 0.17 0.07 ------------ ------------ LESS DISTRIBUTIONS: From net investment income .................... (0.08) (0.03) ------------ ------------ NET ASSET VALUE, END OF PERIOD $ 8.76 $ 8.67 ------------ ------------ TOTAL RETURN (c)(d) ............................. 1.94% 0.85% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) ........ $ 1,751 $ 1,874 Ratio of expenses to average net assets (e)(f) 1.53% 1.55% Ratio of net investment income to average net assets (e)(f) ................................... 1.64% 2.98% Portfolio turnover rate ......................... 98%(d) 182% (a) Class G shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge. (d) Not annualized. (e) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (f) Annualized. See Accompanying Notes to Financial Statements 58 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA SHORT TERM BOND FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD (UNAUDITED) SIX MONTHS ENDED PERIOD ENDED JUNE 30, DECEMBER 31, CLASS T SHARES 2003 2002(a) ------------ ------------ NET ASSET VALUE, BEGINNING OF PERIOD $ 8.67 $ 8.63 ------------ ------------ INCOME FROM INVESTMENT OPERATIONS: Net investment income (b) ..................... 0.10 0.04 Net realized and unrealized gain on investments 0.10 0.04 ------------ ------------ Total from investment operations ............ 0.20 0.08 ------------ ------------ LESS DISTRIBUTIONS: From net investment income .................... (0.11) (0.04) ------------ ------------ NET ASSET VALUE, END OF PERIOD $ 8.76 $ 8.67 ------------ ------------ TOTAL RETURN (c)(d) ............................. 2.30% 0.95% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) ........ $ 29,250 $ 30,859 Ratio of expenses to average net assets (e)(f) .......................................... 0.83% 0.90% Ratio of net investment income to average net assets (e)(f) ................................... 2.34% 3.63% Portfolio turnover rate ......................... 98%(d) 204% (a) Class T shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming all distributions reinvested and no 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 59 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA SHORT TERM BOND FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED) SIX MONTHS ENDED JUNE 30, YEAR ENDED DECEMBER 31, CLASS Z SHARES 2003 2002(a) 2001 2000 1999 1998 ----------- ----------- ----------- ----------- ---------- ---------- NET ASSET VALUE, BEGINNING OF PERIOD $ 8.67 $ 8.55 $ 8.36 $ 8.20 $ 8.39 $ 8.29 ----------- ----------- ----------- ----------- ---------- ---------- INCOME FROM INVESTMENT OPERATIONS: Net investment income ....... 0.11(b) 0.32(b) 0.46(c) 0.42 0.33 0.38 Net realized and unrealized gain (loss) on investments . 0.10 0.14 0.21(c) 0.16 (0.18) 0.14 ----------- ----------- ----------- ----------- ---------- ---------- Total from investment operations ............... 0.21 0.46 0.67 0.58 0.15 0.52 ----------- ----------- ----------- ----------- ---------- ---------- LESS DISTRIBUTIONS: From net investment income .. (0.12) (0.34) (0.46) (0.42) (0.33) (0.38) From net realized gains ..... -- --(d) (0.02) -- (0.01) (0.04) ----------- ----------- ----------- ----------- ---------- ---------- Total distributions ....... (0.12) (0.34) (0.48) (0.42) (0.34) (0.42) ----------- ----------- ----------- ----------- ---------- ---------- NET ASSET VALUE, END OF PERIOD $ 8.76 $ 8.67 $ 8.55 $ 8.36 $ 8.20 $ 8.39 ----------- ----------- ----------- ----------- ---------- ---------- TOTAL RETURN (e) ............. 2.40%(f) 5.56% 8.07%(g) 7.26%(g) 1.80% 6.43% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) .............. $ 444,399 $ 317,588 $ 62,930 $ 35,856$ 38,072 $ 40,578 Ratio of expenses to average net assets (h) .............. 0.62%(i) 0.67% 0.75% 0.88% 0.91% 0.89% Ratio of net investment income to average net assets (h) ... 2.55%(i) 3.86% 5.29%(c) 5.09% 4.09% 4.55% Waiver/reimbursement ......... --% --% 0.16% 0.02% --% --% Portfolio turnover rate ...... 98%(f) 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 premium and accreting discount on all debt securities. The effect of this change for the year ended December 31, 2001, was to increase the ratio of net investment income to average net assets from 5.26% to 5.29%. The impact to net investment income and net realized and unrealized gain per share was less than $0.01. Per share data and ratios for periods prior to December 31, 2001 have not been restated to reflect this change in presentation. (d) Rounds to less than $0.01 per share. (e) Total return at net asset value assuming all distributions reinvested. (f) Not annualized. (g) Had the Advisor not waived or reimbursed a portion of expenses, total return would have been reduced. (h) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (i) Annualized. See Accompanying Notes to Financial Statements 60 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA FIXED INCOME SECURITIES FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD (UNAUDITED) SIX MONTHS ENDED PERIOD ENDED JUNE 30, DECEMBER 31, CLASS A SHARES 2003 2002(a) ------------ ------------ NET ASSET VALUE, BEGINNING OF PERIOD $ 13.52 $ 13.42 ------------ ------------ INCOME FROM INVESTMENT OPERATIONS: Net investment income (b) ................... 0.21 0.11 Net realized and unrealized gain on investments 0.26 0.08 ------------ ------------ Total from investment operations .......... 0.47 0.19 ------------ ------------ LESS DISTRIBUTIONS: From net investment income .................. (0.23) (0.09) ------------ ------------ NET ASSET VALUE, END OF PERIOD $ 13.76 $ 13.52 ------------ ------------ TOTAL RETURN (c)(d) ........................... 3.51% 1.41% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) ...... $ 6,189 $ 945 Ratio of expenses to average net assets (e)(f) 1.36% 0.92% Ratio of net investment income to average net assets (e)(f) ................................. 3.10% 4.78% Portfolio turnover rate ....................... 122%(d) 103% (a) Class A shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming all distributions reinvested and no 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 EACH PERIOD (UNAUDITED) SIX MONTHS ENDED PERIOD ENDED JUNE 30, DECEMBER 31, CLASS B SHARES 2003 2002(a) ----------- ------------ NET ASSET VALUE, BEGINNING OF PERIOD $ 13.52 $ 13.42 ----------- ------------ INCOME FROM INVESTMENT OPERATIONS: Net investment income (b) ...................... 0.16 0.09 Net realized and unrealized gain on investments 0.26 0.08 ----------- ------------ Total from investment operations ............. 0.42 0.17 ----------- ------------ LESS DISTRIBUTIONS: From net investment income ..................... (0.18) (0.07) ----------- ------------ NET ASSET VALUE, END OF PERIOD $ 13.76 $ 13.52 ----------- ------------ TOTAL RETURN (c)(d) .............................. 3.13% 1.27% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) ......... $ 4,339 $ 1,466 Ratio of expenses to average net assets (e)(f) ... 2.03% 1.71% Ratio of net investment income to average net assets(e)(f) ................................. 2.41% 3.99% Portfolio turnover rate .......................... 122%(d) 103% (a) Class A shares were initially offered on November 1, 2002. Per sha re data and total return reflect activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming all distributions reinvested and no 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 61 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA FIXED INCOME SECURITIES FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD (UNAUDITED) SIX MONTHS ENDED PERIOD ENDED JUNE 30, DECEMBER 31, CLASS D SHARES 2003 2002(a) ------------ ------------ NET ASSET VALUE, BEGINNING OF PERIOD $ 13.52 $ 13.42 ------------ ------------ INCOME FROM INVESTMENT OPERATIONS: Net investment income (b) ..................... 0.18 0.09 Net realized and unrealized gain on investments 0.26 0.08 ------------ ------------ Total from investment operations ............ 0.44 0.17 ------------ ------------ LESS DISTRIBUTIONS: From net investment income .................... (0.20) (0.07) ------------ ------------ NET ASSET VALUE, END OF PERIOD $ 13.76 $ 13.52 ------------ ------------ TOTAL RETURN (c)(d)(e) .......................... 3.25% 1.30% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) ........ $ 2,855 $ 427 Ratio of expenses to average net assets (f)(g) .. 1.72% 1.58% Ratio of net investment income to average net assets (f)(g) 2.62% 4.12% Waiver/reimbursement (g) ........................ 0.15% 0.15% Portfolio turnover rate ......................... 122%(e) 103% (a) Class D shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming all distributions reinvested and no 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 62 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA FIXED INCOME SECURITIES FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED) SIX MONTHS ENDED JUNE 30, YEAR ENDED DECEMBER 31, CLASS Z SHARES 2003 2002(a) 2001 2000 1999 1998 ----------- ---------- ---------- ----------- ---------- ----------- NET ASSET VALUE, BEGINNING OF PERIOD $ 13.52 $ 13.22 $ 12.97 $ 12.44 $ 13.42 $ 13.41 ----------- ---------- ---------- ----------- ---------- ----------- INCOME FROM INVESTMENT OPERATIONS: Net investment income ........ 0.26(b) 0.67(b) 0.77(c) 0.82 0.78 0.83 Net realized and unrealized gain (loss) on investments .. 0.25 0.31 0.26(c) 0.53 (0.98) 0.14 ----------- ---------- ---------- ----------- ---------- ----------- Total from investment operations ................ 0.51 0.98 1.03 1.35 (0.20) 0.97 ----------- ---------- ---------- ----------- ---------- ----------- LESS DISTRIBUTIONS: From net investment income ..................... (0.27) (0.68) (0.78) (0.82) (0.78) (0.83) From net realized gains ...... -- -- -- -- --(d) (0.13) ----------- ---------- ---------- ----------- ---------- ----------- Total distributions ........ (0.27) (0.68) (0.78) (0.82) (0.78) (0.96) ----------- ---------- ---------- ----------- ---------- ----------- NET ASSET VALUE, END OF PERIOD $ 13.76 $ 13.52 $ 13.22 $ 12.97 $ 12.44 $ 13.42 ----------- ---------- ---------- ----------- ---------- ----------- TOTAL RETURN (e) ............. 3.83%(f) 7.65% 8.13% 11.27% (1.50)% 7.44% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) .............. $ 558,498 $ 547,524 $ 465,743 $ 378,799 $ 397,147 $422,330 Ratio of expenses to average net assets (g) .............. 0.69%(h) 0.67% 0.66% 0.66% 0.64% 0.65% Ratio of net investment income to average net assets (g) ... 3.84%(h) 5.03% 5.83%(c) 6.53% 6.03% 6.15% Portfolio turnover rate ...... 122%(f) 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 premium and accreting discount on all debt securities. The effect of this change for the year ended December 31, 2001, was to decrease net investment income per share by $0.01, increase net realized and unrealized gain per share by $0.01 and decrease the ratio of net investment income to average net assets from 5.92% to 5.83%. Per share data and ratios for periods prior to December 31, 2001 have not been restated to reflect this change in presentation. (d) Rounds to less than $0.01 per share. (e) Total return at net asset value assuming all distributions reinvested. (f) Not annualized. (g) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (h) Annualized. See Accompanying Notes to Financial Statements 63 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA NATIONAL MUNICIPAL BOND FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD (UNAUDITED) SIX MONTHS ENDED PERIOD ENDED JUNE 30, DECEMBER 31, CLASS A SHARES 2003 2002(a) ---------- ---------- NET ASSET VALUE, BEGINNING OF PERIOD $ 10.28 $ 10.22 ---------- ---------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (b) ................... 0.18 0.06 Net realized and unrealized gain on investments ............................. 0.20 0.10 ---------- ---------- Total from investment operations ........... 0.38 0.16 ---------- ---------- LESS DISTRIBUTIONS: From net investment income .................. (0.17) (0.06) From net realized gains ..................... -- (0.04) ---------- ---------- Total distributions ........................ (0.17) (0.10) ---------- ---------- NET ASSET VALUE, END OF PERIOD $ 10.49 $ 10.28 ---------- ---------- TOTAL RETURN (c)(d)(e) ........................ 3.73% 1.59% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (000's) ............. $ 380 $ 67 Ratio of expenses to average net assets (f)(g) 0.90% 0.90% Ratio of net investment income to average net assets (f)(g) ..................... 3.44% 3.85% Waiver/reimbursement (g) ...................... 1.84% 0.56% Portfolio turnover rate ....................... 8%(e) 43% (a) Class A shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming all distributions reinvested and no 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 64 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA NATIONAL MUNICIPAL BOND FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD (UNAUDITED) SIX MONTHS ENDED PERIOD ENDED JUNE 30, DECEMBER 31, CLASS B SHARES 2003 2002(a) ---------- ---------- NET ASSET VALUE, BEGINNING OF PERIOD $ 10.28 $ 10.22 ---------- ---------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (b) ..................... 0.14 0.05 Net realized and unrealized gain on investments ............................... 0.20 0.10 ---------- ---------- Total from investment operations ............. 0.34 0.15 ---------- ---------- LESS DISTRIBUTIONS: From net investment income .................... (0.13) (0.05) From net realized gains ....................... -- (0.04) ---------- ---------- Total distributions .......................... (0.13) (0.09) ---------- ---------- NET ASSET VALUE, END OF PERIOD $ 10.49 $ 10.28 ---------- ---------- TOTAL RETURN (c)(d)(e) ........................ 3.35% 1.47% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (000's) ............. $ 592 $ 72 Ratio of expenses to average net assets (f)(g) ............................ 1.65% 1.65% Ratio of net investment income to average net assets (f)(g) .................... 2.72% 3.10% Waiver/reimbursement (g) ...................... 1.98% 0.56% Portfolio turnover rate ....................... 8%(e) 43% (a) Class B shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge. (d) Had the 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 65 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA NATIONAL MUNICIPAL BOND FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD (UNAUDITED) SIX MONTHS ENDED PERIOD ENDED JUNE 30, DECEMBER 31, CLASS D SHARES 2003 2002(a) ------------ ------------ NET ASSET VALUE, BEGINNING OF PERIOD $ 10.28 $ 10.22 ------------ ------------ INCOME FROM INVESTMENT OPERATIONS: Net investment income (b) ..................... 0.15 0.05 Net realized and unrealized gain on investments ............................... 0.21 0.10 ------------ ------------ Total from investment operations .............. 0.36 0.15 ------------ ------------ LESS DISTRIBUTIONS: From net investment income .................... (0.15) (0.05) From net realized gains ....................... -- (0.04) ------------ ------------ Total distributions .......................... (0.15) (0.09) ------------ ------------ NET ASSET VALUE, END OF PERIOD $ 10.49 $ 10.28 ------------ ------------ TOTAL RETURN (c)(d)(e) ........................ 3.53% 1.51% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (000's) ............. $ 403 $ 50 Ratio of expenses to average net assets (f)(g) ................................ 1.35% 1.30% Ratio of net investment income to average net assets (f)(g) .................... 2.93% 3.45% Waiver/reimbursement (g) ...................... 2.15% 0.91% Portfolio turnover rate ....................... 8%(e) 43% (a) Class D shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming all distributions reinvested and no initial sales charge or contingent deferred sales charge. (d) Had the Advisor and 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 NATIONAL MUNICIPAL BOND FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED) SIX MONTHS ENDED JUNE 30, PERIOD ENDED YEAR ENDED DECEMBER 31, DECEMBER 31, CLASS Z SHARES 2003 2002(a) 2001 2000 1999(b) ---------- ---------- ----------- ---------- ----------- NET ASSET VALUE, BEGINNING OF PERIOD $ 10.28 $ 9.77 $ 9.82 $ 9.28 $ 10.00 ---------- ---------- ----------- ---------- ----------- INCOME FROM INVESTMENT OPERATIONS: Net investment income ........................ 0.20(c) 0.41(c) 0.44(d) 0.44 0.34 Net realized and unrealized gain (loss) on investments ................................. 0.20 0.55 (0.03)(d) 0.54 (0.72) ---------- ---------- ----------- ---------- ----------- Total from investment operations ............ 0.40 0.96 0.41 0.98 (0.38) ---------- ---------- ----------- ---------- ----------- LESS DISTRIBUTIONS: From net investment income ................... (0.19) (0.41) (0.44) (0.44) (0.34) From net realized gains ...................... -- (0.04) (0.02) -- -- ---------- ---------- ----------- ---------- ----------- Total distributions ......................... (0.19) (0.45) (0.46) (0.44) (0.34) ---------- ---------- ----------- ---------- ----------- NET ASSET VALUE, END OF PERIOD $ 10.49 $ 10.28 $ 9.77 $ 9.82 $ 9.28 ---------- ---------- ----------- ---------- ----------- TOTAL RETURN (e)(f) ........................... 3.98%(g) 10.04% 4.16% 10.87% (3.93)%(g) RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (000's) ............. $ 15,793 $ 16,470 $ 13,769 $ 10,898 $ 10,135 Ratioof expenses to average net assets (h) .... 0.65%(i) 0.65% 0.65% 0.65% 0.65%(i) Ratioof net investment income to average net assets (h) 3.85%(i) 4.10% 4.44%(d) 4.68% 4.21%(i) Waiver/reimbursement .......................... 1.16%(i) 0.50% 0.66% 0.64% 1.07%(i) Portfolio turnover rate ....................... 8%(g) 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, total return and portfolio turnover rate reflect 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 premium and accreting discount on all debt securities. The effect of this change for the year ended December 31, 2001, was to decrease the ratio of net investment income to average net assets from 4.47% to 4.44%. The impact to net investment income and net realized and unrealized loss per share was less than $0.01. Per share data and ratios for periods prior to December 31, 2001 have not been restated to reflect this change in presentation. (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 67 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA OREGON MUNICIPAL BOND FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD (UNAUDITED) SIX MONTHS ENDED PERIOD ENDED JUNE 30, DECEMBER 31, CLASS A SHARES 2003 2002(a) ---------- ---------- NET ASSET VALUE, BEGINNING OF PERIOD $ 12.50 $ 12.52 ---------- ---------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (b) .................... 0.23 0.08 Net realized and unrealized gain on investments ................................. 0.22 0.07 ---------- ---------- Total from investment operations ............ 0.45 0.15 ---------- ---------- LESS DISTRIBUTIONS: From net investment income ................... (0.24) (0.08) From net realized gains ...................... -- (0.09) ---------- ---------- Total distributions ......................... (0.24) (0.17) ---------- ---------- NET ASSET VALUE, END OF PERIOD $ 12.71 $ 12.50 ---------- ---------- TOTAL RETURN (c)(d) ........................... 3.62% 1.19% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) ...... $ 1,457 $ 477 Ratio of expenses to average net assets (e)(f) ............................. 1.00% 0.92% Ratio of net investment income to average net assets (e)(f) ..................... 3.68% 4.11% Portfolio turnover rate ....................... 7%(d) 21% (a) Class A shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming all distributions reinvested and no 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 68 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA OREGON MUNICIPAL BOND FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD (UNAUDITED) SIX MONTHS ENDED PERIOD ENDED JUNE 30, DECEMBER 31, CLASS B SHARES 2003 2002(a) ---------- ---------- NET ASSET VALUE, BEGINNING OF PERIOD $ 12.50 $ 12.52 ---------- ---------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (b) ............. 0.19 0.06 Net realized and unrealized gain on investments .......................... 0.21 0.08 ---------- ---------- Total from investment operations ..... 0.40 0.14 ---------- ---------- LESS DISTRIBUTIONS: From net investment income ............ (0.19) (0.07) From net realized gains ............... -- (0.09) ---------- ---------- Total distributions .................. (0.19) (0.16) ---------- ---------- NET ASSET VALUE, END OF PERIOD $ 12.71 $ 12.50 ---------- ---------- TOTAL RETURN (c)(d) .................... 3.23% 1.10% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $ 898 $ 373 Ratio of expenses to average net assets (e)(f) ..................... 1.76% 1.67% Ratio of net investment income to average net assets (e)(f).............. 2.99% 3.36% Portfolio turnover rate ................ 7%(d) 21% (a) Class B shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge. (d) Not annualized. (e) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (f) Annualized. See Accompanying Notes to Financial Statements 69 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA OREGON MUNICIPAL BOND FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD (UNAUDITED) SIX MONTHS ENDED PERIOD ENDED JUNE 30, DECEMBER 31, CLASS D SHARES 2003 2002(a) ---------- --------- NET ASSET VALUE, BEGINNING OF PERIOD $ 12.50 $ 12.52 ---------- --------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (b) .............. 0.21 0.07 Net realized and unrealized gain on investments ........................ 0.22 0.07 ---------- --------- Total from investment operations ...... 0.43 0.14 ---------- --------- LESS DISTRIBUTIONS: From net investment income ............. (0.22) (0.07) From net realized gains ................ -- (0.09) ---------- --------- Total distributions ................... (0.22) (0.16) ---------- --------- NET ASSET VALUE, END OF PERIOD $ 12.71 $ 12.50 ---------- --------- TOTAL RETURN (c)(d)(e) .................. 3.44% 1.14% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $ 807 $ 448 Ratio of expenses to average net assets (f)(g) .......................... 1.35% 1.32% Ratio of net investment income to average net assets (f)(g) ...................... 3.39% 3.71% Waiver/reimbursement (g) ................ 0.35% 0.35% Portfolio turnover rate ................. 7%(e) 21% (a) Class D shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming all distributions reinvested and no 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 70 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA OREGON MUNICIPAL BOND FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED) SIX MONTHS ENDED JUNE 30, YEAR ENDED DECEMBER 31, CLASS Z SHARES 2003 2002(a) 2001 2000 1999 1998 ----------- ----------- ----------- ---------- ---------- ---------- NET ASSET VALUE, BEGINNING OF PERIOD $ 12.50 $ 12.08 $ 12.13 $ 11.56 $ 12.46 $ 12.47 ----------- ----------- ----------- ---------- ---------- ---------- INCOME FROM INVESTMENT OPERATIONS: Net investment income ....... 0.26(b) 0.55(b) 0.57(c) 0.58 0.56 0.58 Net realized and unrealized gain (loss) on investments ................ 0.21 0.54 (0.02)(c) 0.58 (0.88) 0.10 ----------- ----------- ----------- ---------- ---------- ---------- Total from investment operations ................ 0.47 1.09 0.55 1.16 (0.32) 0.68 ----------- ----------- ----------- ---------- ---------- ---------- LESS DISTRIBUTIONS: From net investment income ..................... (0.26) (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 ........ (0.26) (0.67) (0.60) (0.59) (0.58) (0.69) ----------- ----------- ----------- ---------- ---------- ---------- NET ASSET VALUE, END OF PERIOD $ 12.71 $ 12.50 $ 12.08 $ 12.13 $ 11.56 $ 12.46 ----------- ----------- ----------- ---------- ---------- ---------- TOTAL RETURN (d) ............. 3.83%(e) 9.24% 4.55% 10.28% (2.65)% 5.58% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) ............... $ 526,217 $ 508,865 $ 491,638 $ 436,544 $ 409,919 $ 462,809 Ratio of expenses to average net assets (f) ............... 0.60%(g) 0.58% 0.57% 0.58% 0.57% 0.58% Ratio of net investment income to average net assets (f) .... 4.23%(g) 4.45% 4.64%(c) 4.92% 4.64% 4.60% Portfolio turnover rate ...... 7%(e) 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 premium and accreting discount on all debt securities. The effect of this change for the year ended December 31, 2001, was less than $0.01 to net investment income and net realized and unrealized loss per share and less than 0.01% to the ratio of net investment income to average net assets. Per share data and ratios for the periods prior to December 31, 2001, have not been restated to reflect this change in presentation. (d) Total return at net asset value assuming all distributions reinvested. (e) Not annualized. (f) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (g) Annualized. See Accompanying Notes to Financial Statements 71 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA HIGH YIELD FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD (UNAUDITED) SIX MONTHS ENDED PERIOD ENDED JUNE 30, DECEMBER 31, CLASS A SHARES 2003 2002(a) ---------- --------- NET ASSET VALUE, BEGINNING OF PERIOD $ 8.37 $ 8.17 INCOME FROM INVESTMENT OPERATIONS: Net investment income (b) ............. 0.25 0.09 Net realized and unrealized gain on investments .......................... 0.34 0.20 ---------- --------- Total from investment operations ..... 0.59 0.29 ---------- --------- LESS DISTRIBUTIONS: From net investment income ............ (0.27) (0.09) ---------- --------- NET ASSET VALUE, END OF PERIOD $ 8.69 $ 8.37 ---------- --------- TOTAL RETURN (c)(d) .................... 7.14% 3.50% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $ 159,930 $ 33,992 Ratio of expenses to average net assets (e)(f) ..................... 1.02% 1.15% Ratio of net investment income to average net assets (e)(f) ............. 5.88% 6.46% Portfolio turnover rate ................ 10%(d) 42% (a) Class A shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming all distributions reinvested and no 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 72 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA HIGH YIELD FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD (UNAUDITED) SIX MONTHS ENDED PERIOD ENDED JUNE 30, DECEMBER 31, CLASS B SHARES 2003 2002(a) ---------- ---------- NET ASSET VALUE, BEGINNING OF PERIOD $ 8.37 $ 8.17 ---------- ---------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (b) ............. 0.21 0.07 Net realized and unrealized gain on investments ....................... 0.34 0.20 ---------- ---------- Total from investment operations ..... 0.55 0.27 ---------- ---------- LESS DISTRIBUTIONS: From net investment income ............ (0.23) (0.07) ---------- ---------- NET ASSET VALUE, END OF PERIOD $ 8.69 $ 8.37 ---------- ---------- TOTAL RETURN (c)(d) .................... 6.69% 3.33% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $ 83,757 $ 16,701 Ratio of expenses to average net assets (e)(f) ..................... 1.90% 1.90% Ratio of net investment income to average net assets (e)(f) ............. 4.98% 5.71% Portfolio turnover rate ................ 10%(d) 42% (a) Class B shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge. (d) Not annualized. (e) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (f) Annualized. See Accompanying Notes to Financial Statements 73 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA HIGH YIELD FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD (UNAUDITED) SIX MONTHS ENDED PERIOD ENDED JUNE 30, DECEMBER 31, CLASS D SHARES 2003 2002(a) ---------- ------------ NET ASSET VALUE, BEGINNING OF PERIOD $ 8.37 $ 8.17 ---------- ------------ INCOME FROM INVESTMENT OPERATIONS: Net investment income (b) .............. 0.22 0.07 Net realized and unrealized gain on investments ........................ 0.34 0.20 ---------- ------------ Total from investment operations ...... 0.56 0.27 ---------- ------------ LESS DISTRIBUTIONS: From net investment income ............. (0.24) (0.07) ---------- ------------ NET ASSET VALUE, END OF PERIOD $ 8.69 $ 8.37 ---------- ------------ TOTAL RETURN (c)(d)(e) .................. 6.80% 3.35% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) ......................... $ 99,403 $ 18,035 Ratio of expenses to average net assets (f)(g) .......................... 1.69% 1.75% Ratio of net investment income to average net assets (f)(g) ...................... 5.16% 5.86% Waiver/reimbursement (g) ................ 0.15% 0.15% Portfolio turnover rate ................. 10%(d) 42% (a) Class D shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming all distributions reinvested and no 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 74 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA HIGH YIELD FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED) SIX MONTHS ENDED JUNE 30, YEAR ENDED DECEMBER 31, CLASS Z SHARES 2003 2002(a) 2001 2000 1999 1998 ----------- ----------- ---------- ---------- ---------- ---------- NET ASSET VALUE, BEGINNING OF PERIOD $ 8.37 $ 8.87 $ 8.98 $ 9.32 $ 9.84 $ 10.04 ----------- ----------- ---------- ---------- ---------- ---------- INCOME FROM INVESTMENT OPERATIONS: Net investment income ......... 0.27(b) 0.57(b) 0.67(c) 0.75 0.74 0.76 Net realized and unrealized gain (loss) on investments ... 0.34 (0.48) (0.09)(c) (0.34) (0.51) (0.15) ----------- ----------- ---------- ---------- ---------- ---------- Total from investment operations .................. 0.61 0.09 0.58 0.41 0.23 0.61 ----------- ----------- ---------- ---------- ---------- ---------- LESS DISTRIBUTIONS: From net investment income .... (0.29) (0.59) (0.69) (0.75) (0.74) (0.76) From net realized gains ....... -- -- -- -- (0.01) (0.05) ----------- ----------- ---------- ---------- ---------- ---------- Total distributions .......... (0.29) (0.59) (0.69) (0.75) (0.75) (0.81) ----------- ----------- ---------- ---------- ---------- ---------- NET ASSET VALUE, END OF PERIOD $ 8.69 $ 8.37 $ 8.87 $ 8.98 $ 9.32 $ 9.84 ----------- ----------- ---------- ---------- ---------- ---------- TOTAL RETURN (d) .............. 7.34%(e) 1.17% 6.63% 4.61% 2.38% 6.26% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) ................ $ 1,191,108 $ 702,785 $ 238,994 $ 97,575 $ 71,678 $ 57,524 Ratio of expenses to average net assets (f) ................ 0.75%(g) 0.77% 0.85% 0.93% 0.91% 0.95% Ratio of net investment income to average net assets (f) ..... 6.30%(g) 6.84% 7.47%(c) 8.22% 7.71% 7.52% Portfolio turnover rate ........ 10%(e) 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 premium and accreting discount on all debt securities. The effect of this change for the year ended December 31, 2001, was to decrease net investment income per share by $0.02, decrease net realized and unrealized loss per share by $0.02 and decrease the ratio of net investment income to average net assets from 7.64% to 7.47%. Per share data and ratios for periods prior to December 31, 2001 have not been restated to reflect this change in presentation. (d) Total return at net asset value assuming all distributions reinvested. (e) Not annualized. (f) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (g) Annualized. See Accompanying Notes to Financial Statements 75 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA DAILY INCOME COMPANY FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
SIX MONTHS ENDED JUNE 30, YEAR ENDED DECEMBER 31, CLASS Z SHARES 2003 2002(a) 2001 2000 1999 1998 ----------- ------------ ------------- ------------ ---------- ------------ NET ASSET VALUE, BEGINNING OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 ----------- ------------ ------------- ------------ ---------- ------------ INCOME FROM INVESTMENT OPERATIONS: Net investment income ....... 0.003(b) 0.012(b) 0.036 0.058 0.046 0.050 ----------- ------------ ------------- ------------ ---------- ------------ LESS DISTRIBUTIONS: From net investment income ..................... (0.003) (0.012) (0.036) (0.058) (0.046) (0.050) ----------- ------------ ------------- ------------ ---------- ------------ NET ASSET VALUE, END OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 ----------- ------------ ------------- ------------ ---------- ------------ TOTAL RETURN (c) ............. 0.33%(d) 1.17% 3.70% 6.00% 4.71% 5.09% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) .............. $ 898,711 $ 1,136,075 $ 1,253,535 $ 1,198,151 $1,165,289 $ 1,109,141 Ratio of expenses to average net assets (e) .............. 0.62%(f) 0.60% 0.60% 0.60% 0.64% 0.62% Ratio of net investment income to average net assets (e) ... 0.64%(f) 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) 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 76 This page intentionally left blank. 77 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA COMMON STOCK FUND JUNE 30, 2003 (UNAUDITED) SHARES VALUE ----------- ------------- COMMON STOCKS (96.3%) CONSUMER DISCRETIONARY (15.8%) HOTELS, RESTAURANTS & LEISURE (5.0%) Carnival Corp.......................... 70,100 $ 2,278,951 Hilton Hotels Corp..................... 161,600 2,066,864 McDonald's Corp........................ 345,400 7,619,524 Royal Caribbean Cruises Ltd............ 210,200 4,868,232 Yum! Brands, Inc. (a).................. 146,400 4,327,584 ------------- 21,161,155 ------------- INTERNET & CATALOG RETAIL (0.3%) eBay, Inc. (a)......................... 10,800 1,125,144 ------------- MEDIA (3.8%) AOL Time Warner, Inc. (a).............. 305,564 4,916,525 Clear Channel Communications, Inc. (a)............................. 47,125 1,997,629 Comcast Corp., Class A (a)............. 71,667 2,162,910 Interpublic Group of Companies, Inc. ................................ 92,300 1,234,974 Liberty Media Corp., Class A (a)....... 354,411 4,096,991 Viacom, Inc., Class B (a).............. 44,500 1,942,870 ------------- 16,351,899 ------------- MULTI-LINE RETAIL (4.8%) Dollar General Corp.................... 174,350 3,183,631 Kohl's Corp. (a)....................... 129,260 6,641,379 Target Corp............................ 176,700 6,686,328 Wal-Mart Stores, Inc................... 72,235 3,876,852 ------------- 20,388,190 ------------- SPECIALTY RETAIL (1.9%) Home Depot, Inc........................ 194,125 6,429,420 Lowe's Companies, Inc. ................ 44,325 1,903,759 ------------- 8,333,179 ------------- CONSUMER STAPLES (4.4%) BEVERAGES (1.0%) PepsiCo, Inc........................... 91,675 4,079,538 ------------- FOOD PRODUCTS (0.2%) Hershey Foods Corp. ................... 14,300 996,138 ------------- HOUSEHOLD PRODUCTS (0.3%) Procter & Gamble Co.................... 14,075 1,255,208 ------------- PERSONAL PRODUCTS (1.1%) Alberto-Culver Co., Class B............ 64,650 3,303,615 Gillette Co............................ 46,100 1,468,746 ------------- 4,772,361 ------------- SHARES VALUE ----------- ------------- TOBACCO (1.8%) Altria Group, Inc...................... 164,700 $ 7,483,968 ENERGY (6.7%) ENERGY EQUIPMENT & SERVICES (2.4%) BJ Services Co. (a).................... 51,300 1,916,568 ENSCO International, Inc............... 78,900 2,122,410 Nabors Industries Ltd. (a)............. 44,900 1,775,795 Noble Corp. (a)........................ 52,550 1,802,465 Schlumberger Ltd....................... 57,900 2,754,303 ------------- 10,371,541 ------------- OIL & GAS (4.3%) Apache Corp............................ 73,344 4,771,761 ConocoPhillips......................... 42,725 2,341,330 Devon Energy Corp...................... 39,225 2,094,615 EOG Resources, Inc..................... 36,750 1,537,620 Equitable Resources, Inc............... 40,100 1,633,674 Exxon Mobil Corp....................... 135,782 4,875,932 Pioneer Natural Resources Co. (a).............................. 40,600 1,059,660 ------------- 18,314,592 ------------- FINANCIALS (20.3%) BANKS (4.5%) Bank of America Corp................... 114,005 9,009,815 Bank One Corp. ........................ 98,625 3,666,878 Fifth Third Bancorp.................... 36,000 2,064,240 U.S. Bancorp........................... 174,600 4,277,700 ------------- 19,018,633 ------------- DIVERSIFIED FINANCIALS (10.6%) American Express Co.................... 203,675 8,515,652 Citigroup, Inc......................... 411,164 17,597,819 Fannie Mae............................. 38,525 2,598,126 Goldman Sachs Group, Inc............... 34,400 2,881,000 J.P. Morgan Chase & Co................. 212,535 7,264,446 Merrill Lynch & Co., Inc............... 67,275 3,140,397 Morgan Stanley......................... 30,325 1,296,394 Principal Financial Group, Inc......... 63,400 2,044,650 ------------- 45,338,484 ------------- INSURANCE (5.2%) American International Group, Inc. ................................ 102,937 5,680,064 Aon Corp............................... 68,100 1,639,848 Chubb Corp............................. 85,300 5,118,000 Hartford Financial Services Group, Inc........................... 84,300 4,245,348 Marsh & McLennan Companies, Inc. ................................ 66,875 3,415,306 Prudential Financial, Inc.............. 62,800 2,113,220 ------------- 22,211,786 ------------- See Accompanying Notes to Financial Statements 78 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- SHARES VALUE ----------- ------------- HEALTH CARE (16.7%) BIOTECHNOLOGY (1.5%) Amgen, Inc. (a)........................ 67,057 $ 4,455,267 Biogen, Inc. (a)....................... 36,300 1,379,400 IDEC Pharmaceuticals Corp. (a)......... 18,400 625,600 ------------- 6,460,267 ------------- HEALTH CARE EQUIPMENT & SUPPLIES (1.4%) Applera Corp. - Applied Biosystems Group................................ 83,900 1,596,617 Becton, Dickinson & Co................. 106,200 4,125,870 ------------- 5,722,487 ------------- HEALTH CARE PROVIDERS & SERVICES (3.2%) Aetna, Inc............................. 34,600 2,082,920 Caremark Rx, Inc. (a).................. 100,900 2,591,112 McKesson Corp.......................... 87,775 3,137,078 UnitedHealth Group, Inc................ 72,700 3,653,175 WellPoint Health Networks, Inc. (a)............................. 25,050 2,111,715 ------------- 13,576,000 ------------- PHARMACEUTICALS (10.6%) Abbott Laboratories.................... 94,190 4,121,754 Bristol-Myers Squibb Co................ 173,518 4,711,014 Johnson & Johnson...................... 139,975 7,236,708 Merck & Co., Inc....................... 105,600 6,394,080 Pfizer, Inc............................ 504,539 17,230,007 Shire Pharmaceuticals Group PLC, ADR (a)......................... 77,300 1,522,810 Wyeth.................................. 90,350 4,115,442 ------------- 45,331,815 ------------- INDUSTRIALS (9.5%) AEROSPACE & DEFENSE (3.0%) L-3 Communications Holdings, Inc. (a)............................. 100,200 4,357,698 Lockheed Martin Corp................... 87,000 4,138,590 Northrop Grumman Corp. ................ 48,300 4,167,807 ------------- 12,664,095 ------------- AIR FREIGHT & LOGISTICS (0.5%) FedEx Corp............................. 32,875 2,039,236 ------------- COMMERCIAL SERVICES & SUPPLIES (1.7%) First Data Corp........................ 47,150 1,953,896 Waste Management, Inc. ................ 219,900 5,297,391 ------------- ..................................... 7,251,287 ------------- INDUSTRIAL CONGLOMERATES (3.4%) 3M Co.................................. 30,525 3,937,114 General Electric Co.................... 375,150 10,759,302 ------------- 14,696,416 ------------- SHARES VALUE ----------- ------------- MACHINERY (0.9%) Deere & Co. ........................... 90,000 $ 4,113,000 ------------- INFORMATION TECHNOLOGY (16.2%) COMMUNICATIONS EQUIPMENT (2.3%) Cisco Systems, Inc. (a)................ 223,190 3,725,041 Emulex Corp. (a)....................... 117,860 2,683,672 QUALCOMM, Inc.......................... 100,675 3,599,131 ------------- 10,007,844 ------------- COMPUTERS & PERIPHERALS (0.6%) EMC Corp. (a).......................... 125,400 1,312,938 Hewlett-Packard Co..................... 68,500 1,459,050 ------------- 2,771,988 ------------- INTERNET SOFTWARE & SERVICES (0.9%) Yahoo!, Inc. (a)....................... 111,300 3,646,188 ------------- SEMICONDUCTOR EQUIPMENT & PRODUCTS (6.1%) Broadcom Corp., Class A (a)............ 76,700 1,910,597 Intel Corp............................. 132,875 2,761,674 Intersil Corp., Class A (a)............ 110,700 2,945,727 Linear Technology Corp................. 86,000 2,770,060 Marvell Technology Group Ltd. (a)............................ 93,600 3,217,032 Maxim Integrated Products, Inc......... 15,125 517,124 National Semiconductor Corp. (a)............................ 86,125 1,698,385 NVIDIA Corp. (a)....................... 70,700 1,626,807 Silicon Laboratories, Inc. (a)......... 89,900 2,394,936 Taiwan Semiconductor Manufacturing Co., Ltd., ADR (a)................... 275,020 2,772,202 Texas Instruments, Inc................. 57,600 1,013,760 Vitesse Semiconductor Corp. (a)........ 186,500 917,580 Xilinx, Inc. (a)....................... 58,800 1,488,228 ------------- 26,034,112 ------------- SOFTWARE (6.3%) BEA Systems, Inc. (a).................. 128,400 1,394,424 Computer Associates International, Inc................... 77,800 1,733,384 Mercury Interactive Corp. (a).......... 55,900 2,158,299 Microsoft Corp......................... 575,925 14,749,439 Oracle Corp. (a)....................... 158,900 1,909,978 Symantec Corp. (a)..................... 47,575 2,086,640 VERITAS Software Corp. (a)............. 92,400 2,649,108 ------------- 26,681,272 ------------- MATERIALS (0.5%) CHEMICALS (0.5%) Praxair, Inc........................... 34,925 2,098,992 ------------- See Accompanying Notes to Financial Statements 79 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA COMMON STOCK FUND (CONT.) JUNE 30, 2003 (UNAUDITED) SHARES VALUE ----------- ------------- TELECOMMUNICATION SERVICES (3.9%) DIVERSIFIED TELECOMMUNICATION SERVICES (3.4%) BellSouth Corp......................... 176,200 $ 4,692,206 SBC Communications, Inc................ 168,650 4,309,007 Verizon Communications, Inc............ 136,700 5,392,815 ------------- 14,394,028 ------------- WIRELESS TELECOMMUNICATION SERVICES (0.5%) Vodafone Group PLC, ADR................ 113,150 2,223,398 ------------- UTILITIES (2.3%) ELECTRIC UTILITIES (2.3%) Ameren Corp............................ 35,600 1,569,960 Consolidated Edison, Inc............... 65,500 2,834,840 DTE Energy Co.......................... 110,600 4,273,585 Pinnacle West Capital Corp............. 26,600 996,170 ------------- 9,674,555 ------------- Total Common Stocks (Cost of $351,412,391)............... 410,588,796 ------------- PREFERRED STOCK (0.5%) CONSUMER DISCRETIONARY (0.5%) MEDIA (0.5%) News Corp., Ltd., ADR (Cost of $1,862,298)................. 88,225 2,210,036 ------------- SHORT-TERM OBLIGATION (4.0%) PAR Repurchase agreement with State Street Bank & Trust Co., dated 06/30/03, due 07/01/03 at 0.950%, collateralized by a U.S. Treasury Bond maturing 11/15/10, market value $17,518,500 (repurchase proceeds $17,175,453) (Cost of $17,175,000)................ $17,175,000 17,175,000 ------------- TOTAL INVESTMENTS (100.8%) (Cost of $370,449,689) (b)........... 429,973,832 ------------- OTHER ASSETS & LIABILITIES, NET (-0.8%).... (3,562,959) ------------- NET ASSETS (100.0%)........................ $ 426,410,873 ============= NOTES TO SCHEDULE OF INVESTMENTS: (a) Non-income producing. (b) Cost for both financial statement and federal income tax purposes is the same. ACRONYM NAME ------- ---- ADR American Depositary Receipt COLUMBIA GROWTH FUND JUNE 30, 2003 (UNAUDITED) SHARES VALUE ----------- ------------- COMMON STOCKS (97.8%) CONSUMER DISCRETIONARY (14.9%) HOTELS, RESTAURANTS & LEISURE (0.9%) Wendy's International, Inc............. 149,820 $ 4,340,285 Yum! Brands, Inc. (a).................. 128,580 3,800,825 ------------- 8,141,110 ------------- HOUSEHOLD DURABLES (0.3%) Garmin Ltd. (a)........................ 69,000 2,751,030 ------------- INTERNET & CATALOG RETAIL (1.7%) eBay, Inc. (a)......................... 70,200 7,313,436 InterActiveCorp (a).................... 187,150 7,405,525 ------------- 14,718,961 ------------- MEDIA (4.4%) AOL Time Warner, Inc. (a).............. 517,975 8,334,218 Clear Channel Communications, Inc. (a)............................. 213,731 9,060,057 Comcast Corp., Class A (a)............. 116,500 3,587,312 Liberty Media Corp., Class A (a)....... 540,895 6,252,746 Viacom, Inc., Class B (a).............. 196,490 8,578,753 XM Satellite Radio Holdings, Inc., Class A (a).......................... 323,000 3,569,150 ------------- 39,382,236 ------------- MULTI-LINE RETAIL (3.4%) Kohl's Corp. (a)....................... 274,254 14,091,171 Target Corp............................ 416,990 15,778,902 ------------- 29,870,073 ------------- SPECIALTY RETAIL (4.2%) Bed Bath & Beyond, Inc. (a)............ 178,360 6,922,152 Chico's FAS, Inc. (a).................. 332,700 7,003,335 Home Depot, Inc........................ 406,900 13,476,528 Lowe's Companies, Inc.................. 230,500 9,899,975 ------------- 37,301,990 ------------- CONSUMER STAPLES (11.1%) BEVERAGES (3.4%) Anheuser-Busch Companies, Inc.......... 65,670 3,352,453 Coca-Cola Co........................... 186,380 8,649,896 PepsiCo, Inc........................... 404,740 18,010,930 ------------- 30,013,279 ------------- FOOD & DRUG RETAILING (0.9%) Sysco Corp............................. 199,710 5,999,288 Whole Foods Market, Inc. (a)........... 45,700 2,172,121 ------------- 8,171,409 ------------- See Accompanying Notes to Financial Statements 80 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- SHARES VALUE ----------- ------------- FOOD PRODUCTS (1.0%) Dean Foods Co. (a)..................... 175,600 $ 5,531,400 Wm. Wrigley Jr. Co. ................... 62,090 3,491,321 ------------- 9,022,721 ------------- FOOD & STAPLES RETAILING (2.5%) Wal-Mart Stores, Inc................... 409,990 22,004,163 ------------- HOUSEHOLD PRODUCTS (0.9%) Procter & Gamble Co. .................. 88,960 7,933,453 ------------- PERSONAL PRODUCTS (1.7%) Alberto-Culver Co., Class B............ 121,830 6,225,513 Gillette Co............................ 263,260 8,387,464 ------------- 14,612,977 ------------- TOBACCO (0.7%) Altria Group, Inc...................... 141,170 6,414,765 ------------- ENERGY (3.8%) ENERGY EQUIPMENT & SERVICES (3.0%) BJ Services Co. (a).................... 137,790 5,147,834 Nabors Industries Ltd. (a)............. 146,550 5,796,052 Noble Corp. (a)........................ 98,250 3,369,975 Patterson-UTI Energy, Inc. (a)......... 132,100 4,280,040 Schlumberger Ltd....................... 107,300 5,104,261 Smith International, Inc. (a).......... 85,700 3,148,618 ------------- 26,846,780 ------------- OIL & GAS (0.8%) Apache Corp............................ 66,000 4,293,960 Murphy Oil Corp. ...................... 55,200 2,903,520 ------------- 7,197,480 ------------- FINANCIALS (7.6%) CAPITAL MARKETS (0.8%) Goldman Sachs Group, Inc............... 84,490 7,076,038 ------------- CONSUMER FINANCE (0.5%) SLM Corp............................... 98,610 3,862,554 ------------- DIVERSIFIED FINANCIALS (3.2%) Citigroup, Inc......................... 672,026 28,762,713 ------------- INSURANCE (1.6%) American International Group, Inc. ................................ 201,014 11,091,953 Marsh & McLennan Companies, Inc. ................................ 69,070 3,527,405 ------------- 14,619,358 ------------- THRIFTS & MORTGAGE FINANCE (1.5%) Fannie Mae............................. 192,930 13,011,199 ------------- SHARES VALUE ----------- ------------- HEALTH CARE (25.4%) BIOTECHNOLOGY (2.8%) Amgen, Inc. (a)........................ 368,300 $ 24,469,852 IDEC Pharmaceuticals Corp. (a)......... 13,700 465,800 ------------- 24,935,652 ------------- HEALTH CARE EQUIPMENT & SUPPLIES (4.5%) Alcon, Inc............................. 94,500 4,318,650 Becton, Dickinson & Co................. 180,800 7,024,080 Boston Scientific Corp. (a)............ 141,170 8,625,487 Medtronic, Inc......................... 220,355 10,570,429 St. Jude Medical, Inc. (a)............. 155,200 8,924,000 ------------- 39,462,646 ------------- HEALTH CARE PROVIDERS & SERVICES (3.7%) Anthem, Inc. (a)....................... 81,350 6,276,152 Caremark Rx, Inc. (a).................. 163,700 4,203,816 McKesson Corp.......................... 77,900 2,784,146 UnitedHealth Group, Inc................ 284,520 14,297,130 WellPoint Health Networks, Inc. (a)............................. 62,880 5,300,784 ------------- 32,862,028 ------------- PHARMACEUTICALS (14.4%) Abbott Laboratories.................... 258,800 11,325,088 Biovail Corp. (a)...................... 169,000 7,953,140 Johnson & Johnson...................... 454,850 23,515,745 Merck & Co., Inc....................... 132,740 8,037,407 Pfizer, Inc............................ 1,681,333 57,417,522 Teva Pharmaceutical Industries Ltd., ADR............................ 170,870 9,727,629 Wyeth.................................. 221,910 10,108,000 ------------- 128,084,531 ------------- INDUSTRIALS (6.5%) AEROSPACE & DEFENSE (0.7%) Lockheed Martin Corp................... 125,700 5,979,549 ------------- AIR FREIGHT & LOGISTICS (1.2%) FedEx Corp. ........................... 102,500 6,358,075 United Parcel Service, Inc., Class B.............................. 72,600 4,624,620 ------------- 10,982,695 ------------- INDUSTRIAL CONGLOMERATES (4.6%) General Electric Co.................... 1,046,685 30,018,926 Tyco International Ltd................. 539,700 10,243,506 ------------- 40,262,432 ------------- See Accompanying Notes to Financial Statements 81 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA GROWTH FUND (cont.) JUNE 30, 2003 (UNAUDITED) SHARES VALUE ----------- ------------- INFORMATION TECHNOLOGY (27.8%) COMMUNICATIONS EQUIPMENT (4.5%) Brocade Communications Systems, Inc. (a)............................. 307,200 $ 1,809,408 Cisco Systems, Inc. (a)................ 1,418,075 23,667,672 Comverse Technology, Inc. (a).......... 92,200 1,385,766 Juniper Networks, Inc. (a)............. 63,600 786,732 Motorola, Inc. ........................ 395,700 3,731,451 UTStarcom, Inc. (a).................... 250,900 8,924,513 ------------- 40,305,542 ------------- COMPUTERS & PERIPHERALS (3.7%) Dell Computer Corp. (a)................ 567,690 18,143,372 Lexmark International, Inc. (a)........ 206,850 14,638,774 ------------- 32,782,146 ------------- IT SERVICES (1.7%) Concord EFS, Inc. (a).................. 570,600 8,399,232 First Data Corp........................ 154,340 6,395,850 ------------- 14,795,082 ------------- SEMICONDUCTOR EQUIPMENT & PRODUCTS (10.2%) Analog Devices, Inc. (a)............... 126,000 4,387,320 Applied Micro Circuits Corp. (a)....... 348,900 2,110,845 ASML Holdings NV, NY Registered Shares (a)................ 187,900 1,796,324 Broadcom Corp., Class A (a)............ 201,900 5,029,329 Cabot Microelectronics Corp. (a)....... 178,100 8,988,707 Infineon Technologies AG, ADR.......... 582,900 5,590,011 Intel Corp............................. 703,070 14,612,607 Intersil Corp., Class A (a)............ 487,600 12,975,036 Marvell Technology Group Ltd. (a)............................. 240,000 8,248,800 Maxim Integrated Products, Inc......... 36,700 1,254,773 Microchip Technology, Inc.............. 115,450 2,843,533 NVIDIA Corp. (a)....................... 432,950 9,962,180 PMC-Sierra, Inc. (a)................... 762,300 8,941,779 Texas Instruments, Inc................. 239,820 4,220,832 ------------- 90,962,076 ------------- SOFTWARE (7.7%) Adobe Systems, Inc..................... 143,200 4,592,424 Electronic Arts, Inc. (a).............. 57,230 4,234,448 Microsoft Corp......................... 1,618,000 41,436,980 Oracle Corp. (a)....................... 553,490 6,652,950 SAP AG, ADR............................ 212,710 6,215,386 VERITAS Software Corp. (a)............. 176,800 5,068,856 ------------- 68,201,044 ------------- SHARES VALUE ----------- ------------- TELECOMMUNICATION SERVICES (0.7%) WIRELESS TELECOMMUNICATION SERVICES (0.7%) AT&T Wireless Services, Inc. (a)....... 232,400 $ 1,908,004 Mobile Telesystems, ADR (a)............ 48,800 2,879,200 Sprint Corp. - PCS Group (a)........... 224,800 1,292,600 ------------- 6,079,804 ------------- Total Common Stocks (Cost of $716,621,668)............... 867,409,516 ------------- PREFERRED STOCK (0.5%) CONSUMER DISCRETIONARY (0.5%) MEDIA (0.5%) News Corp., Ltd., ADR (Cost of $4,078,855)................. 181,825 4,554,716 ------------- SHORT-TERM OBLIGATION (1.5%) PAR Repurchase agreement with State Street Bank & Trust Co., dated 06/30/03, due 07/01/03 at 0.950%, collateralized by a U.S. Treasury Bond maturing 05/15/10, market value $13,437,450 (repurchase proceeds $13,171,348) (Cost of $13,171,000)................ $13,171,000 13,171,000 ------------- TOTAL INVESTMENTS (99.8%) (Cost of $733,871,523) (b)........... 885,135,232 ------------- OTHER ASSETS & LIABILITIES, NET (0.2%)..... 1,994,542 ------------- NET ASSETS (100.0%)........................ $ 887,129,774 ============= NOTES TO SCHEDULE OF INVESTMENTS: (a) Non-income producing. (b) Cost for both financial statement and federal income tax purposes is the same. ACRONYM NAME ------- ---- ADR American Depositary Receipt COLUMBIA INTERNATIONAL STOCK FUND JUNE 30, 2003 (UNAUDITED) SHARES VALUE ----------- ------------- COMMON STOCKS (95.3%) CONSUMER DISCRETIONARY (20.9%) AUTO COMPONENTS (0.6%) F.C.C. Co., Ltd........................ 19,900 $ 471,536 Nissan Shatai Co., Ltd................. 263,500 885,991 ------------- 1,357,527 ------------- See Accompanying Notes to Financial Statements 82 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- SHARES VALUE ----------- ------------- AUTOMOBILES (1.0%) Honda Motor Co., Ltd................... 38,600 $ 1,465,354 Nissan Motor Co., Ltd.................. 108,000 1,034,450 ------------- 2,499,804 ------------- HOUSEHOLD DURABLES (5.5%) Koninklijke (Royal) Philips Electronics NV....................... 135,200 2,575,309 Land and Houses Public Co., Ltd., NVDR........................... 13,098,000 2,739,777 Matsushita Electric Industrial Co., Ltd............................. 282,000 2,797,530 Pioneer Corp........................... 122,300 2,755,079 Sanyo Electric Co., Ltd................ 455,000 1,560,260 Srithai Superware Public Co., Ltd. (a)............................. 3,500,000 678,037 ------------- 13,105,992 ------------- INTERNET & CATALOG RETAIL (0.5%) Belluna Co., Ltd....................... 30,000 1,226,482 ------------- MEDIA (5.6%) BEC World Public Co., Ltd. PLC......... 144,500 824,340 British Sky Broadcasting PLC (a)....... 239,100 2,653,826 JC Decaux SA (a)....................... 116,700 1,463,153 Pearson PLC............................ 339,200 3,173,358 Reed Elsevier PLC...................... 236,900 1,974,503 VNU NV................................. 100,900 3,113,897 ------------- 13,203,077 ------------- MULTI-LINE RETAIL (3.3%) Aeon Co., Ltd.......................... 73,000 1,674,941 Don Quijote Co., Ltd. ................. 7,300 367,269 Don Quijote Co., Ltd. (a)(b)........... 7,300 336,206 Shinsegae Co., Ltd..................... 15,430 2,409,121 Wal-Mart de Mexico SA de CV, Class V.............................. 1,014,000 2,989,745 ------------- 7,777,282 ------------- SPECIALTY RETAIL (2.7%) Kingfisher PLC......................... 529,100 2,424,689 Next PLC............................... 160,558 2,724,192 Shimamura Co., Ltd..................... 24,000 1,327,604 ------------- 6,476,485 ------------- TEXTILES, APPAREL & LUXURY GOODS (1.7%) LVMH Moet Hennessy Louis Vuitton SA........................... 35,100 1,743,744 Puma AG................................ 16,400 1,631,745 Sanyo Shokai Ltd....................... 94,000 569,388 ------------- 3,944,877 ------------- SHARES VALUE ----------- ------------- CONSUMER STAPLES (8.1%) BEVERAGES (2.5%) Diageo PLC............................. 194,198 $ 2,076,805 Foster's Group Ltd..................... 626,577 1,771,211 Pernod-Ricard SA....................... 22,050 1,970,707 ------------- 5,818,723 ------------- FOOD & DRUG RETAILING (0.9%) Big C Supercenter Public Co.,s Ltd., NVDR........................... 2,815,000 1,191,039 Seven-Eleven Japan Co., Ltd............ 40,000 997,872 ------------- 2,188,911 ------------- FOOD PRODUCTS (1.9%) Nestle SA, Registered Shares........... 9,156 1,893,387 Unilever NV............................ 19,700 1,058,672 Unilever PLC........................... 120,237 958,920 Yakult Honsha Co., Ltd................. 42,000 564,182 ------------- 4,475,161 ------------- HOUSEHOLD PRODUCTS (1.1%) Reckitt Benckiser PLC.................. 143,360 2,634,994 ------------- PERSONAL PRODUCTS (0.7%) L'Oreal SA............................. 24,720 1,745,859 ------------- TOBACCO (1.0%) Imperial Tobacco Group PLC............. 132,300 2,368,291 ------------- ENERGY (3.1%) OIL & GAS (3.1%) BP PLC................................. 110,318 766,304 BP PLC, ADR............................ 47,500 1,995,950 ENI S.p.A. ............................ 242,050 3,666,766 Total Fina Elf SA...................... 6,675 1,010,414 ------------- 7,439,434 ------------- FINANCIALS (17.2%) BANKS (13.8%) Anglo Irish Bank Corp. PLC............. 131,200 1,149,361 Banco Popular Espanol SA............... 25,375 1,284,254 Banco Santander Central Hispano SA........................... 259,400 2,276,601 Bank of Ireland........................ 160,307 1,937,972 Barclays PLC........................... 392,856 2,922,084 Credit Agricole SA..................... 125,143 2,382,303 Credit Suisse Group.................... 120,480 3,177,798 Danske Bank A/S........................ 87,100 1,698,749 Fortis Bank Nederland Holding NV (a)(c)(d)(e)...................... 4,100 -- Grupo Financiero BBVA Bancomer SA de CV (a)................ 1,696,300 1,433,402 Kookmin Bank........................... 24,980 752,851 Royal Bank of Scotland Group PLC....... 145,471 4,087,635 See Accompanying Notes to Financial Statements 83 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA INTERNATIONAL STOCK FUND (CONT.) JUNE 30, 2003 (UNAUDITED) SHARES VALUE ----------- ------------- Siam Commercial Bank Public Co., Ltd. (a)............................. 1,721,300 $ 1,472,945 Standard Chartered PLC................. 303,322 3,690,018 UBS AG, Registered Shares.............. 20,480 1,141,734 UniCredito Italiano S.p.A.............. 680,200 3,246,961 ------------- 32,654,668 ------------- DIVERSIFIED FINANCIALS (1.7%) Euronext NV............................ 70,300 1,745,823 ING Groep NV........................... 130,800 2,276,350 ------------- 4,022,173 ------------- INSURANCE (0.9%) Converium Holding AG................... 16,100 744,488 Irish Life & Permanent PLC............. 127,100 1,369,031 ------------- 2,113,519 ------------- REAL ESTATE (0.8%) Mitsubishi Estate Co., Ltd............. 285,000 1,933,211 ------------- HEALTH CARE (10.6%) HEALTH CARE EQUIPMENT & SUPPLIES (2.6%) Olympus Optical Co., Ltd. ............. 116,000 2,405,073 ResMed, Inc. (a)....................... 44,900 1,760,080 Smith & Nephew PLC..................... 345,310 1,987,683 ------------- 6,152,836 ------------- PHARMACEUTICALS (8.0%) Chugai Pharmaceutical Co., Ltd......... 191,600 2,180,488 Dr. Reddy's Laboratories Ltd., ADR..... 58,000 1,351,980 GlaxoSmithKline PLC.................... 101,826 2,058,410 Novartis AG............................ 63,590 2,521,770 Ranbaxy Laboratories Ltd., GDR......... 77,000 1,474,550 Roche Holding AG....................... 7,296 573,542 Sanofi-Synthelabo SA................... 26,264 1,540,719 Sawai Pharmaceutical Co., Ltd.......... 43,900 1,175,746 Stada Arzneimittel AG.................. 8,600 548,025 Takeda Chemical Industries Ltd......... 52,000 1,921,989 Taro Pharmaceuticals Industries Ltd. (a)............................. 10,700 587,216 Teva Pharmaceutical Industries Ltd., ADR............................ 54,000 3,074,220 ------------- 19,008,655 ------------- INDUSTRIALS (7.7%) AIR FREIGHT & LOGISTICS (0.4%) Exel PLC............................... 81,600 838,933 ------------- AIRLINES (1.0%) Cathay Pacific Airways Ltd............. 832,000 1,120,266 Singapore Airlines Ltd................. 188,000 1,110,436 ------------- 2,230,702 ------------- SHARES VALUE ----------- ------------- COMMERCIAL SERVICES & SUPPLIES (1.4%) Amadeus Global Travel Distribution SA...................... 365,600 $ 2,098,452 Capita Group PLC....................... 349,975 1,307,351 ------------- 3,405,803 ------------- INDUSTRIAL CONGLOMERATES (1.9%) JSC MMC Norilsk Nickel, ADR (a)........ 17,700 615,960 Smiths Group PLC....................... 192,500 2,236,829 Wesfarmers Ltd......................... 102,750 1,745,485 ------------- 4,598,274 ------------- TRANSPORTATION INFRASTRUCTURE (3.0%) ACESA Infraestructuras, SA (a)......... 165,321 2,314,254 BAA PLC................................ 220,679 1,789,150 Cosco Pacific Ltd...................... 1,964,000 2,052,615 Zhejiang Expressway Co., Ltd., Class H.............................. 2,500,000 1,033,899 ------------- 7,189,918 ------------- INFORMATION TECHNOLOGY (9.7%) COMMUNICATIONS EQUIPMENT (0.9%) Nokia Oyj, ADR......................... 74,600 1,225,678 Nortel Networks Corp. (a).............. 356,900 958,227 ------------- 2,183,905 ------------- ELECTRONIC EQUIPMENT & INSTRUMENTS (1.5%) Hoya Corp. ............................ 22,600 1,559,401 Keyence Corp........................... 10,500 1,927,329 ------------- 3,486,730 ------------- INFORMATION TECHNOLOGY CONSULTING & SERVICES (0.7%) Indra Sistemas SA...................... 164,700 1,676,599 ------------- OFFICE ELECTRONICS (1.1%) Canon, Inc............................. 54,000 2,482,500 ------------- SEMICONDUCTOR EQUIPMENT & PRODUCTS (4.6%) ARM Holdings PLC (a)................... 1,094,800 1,212,429 Rohm Co., Ltd. ........................ 14,700 1,605,465 Samsung Electronics Co., Ltd. ......... 9,000 2,674,759 Taiwan Semiconductor Manufacturing Co., Ltd. (a).......... 325,000 3,276,000 Tokyo Electron Ltd..................... 46,800 2,221,785 ------------- 10,990,438 ------------- SOFTWARE (0.9%) Dassault Systemes SA................... 64,291 2,114,991 ------------- MATERIALS (6.7%) CHEMICALS (0.9%) L'Air Liquide SA....................... 7,719 1,146,251 Shin-Etsu Chemical Co., Ltd. .......... 32,800 1,122,022 ------------- 2,268,273 ------------- See Accompanying Notes to Financial Statements 84 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- SHARES VALUE ----------- ------------- CONSTRUCTION MATERIALS (1.5%) Siam Cement Public Co., Ltd., NVDR................................. 978,000 $ 3,487,045 ------------- CONTAINERS & PACKAGING (0.9%) Amcor Ltd.............................. 395,100 2,154,154 ------------- METALS & MINING (2.1%) BHP Billiton Ltd....................... 500,100 2,901,244 Rio Tinto PLC.......................... 112,500 2,119,845 ------------- 5,021,089 ------------- PAPER & FOREST PRODUCTS (1.3%) Stora Enso Oyj, Class R................ 84,000 940,123 Svenska Cellulosa AB, Class B.......... 35,700 1,221,227 UPM-Kymmene Oyj........................ 61,800 903,496 ------------- 3,064,846 ------------- TELECOMMUNICATION SERVICES (7.8%) DIVERSIFIED TELECOMMUNICATION SERVICES (2.8%) Telecom Italia S.p.A................... 259,600 2,353,007 Telefonica SA (a)...................... 363,484 4,226,967 ------------- 6,579,974 ------------- WIRELESS TELECOMMUNICATION SERVICES (5.0%) NTT DoCoMo, Inc........................ 1,430 3,102,082 Orange SA (a).......................... 207,700 1,846,751 Vodafone Group PLC..................... 3,500,729 6,856,834 ------------- 11,805,667 ------------- UTILITIES (3.5%) ELECTRIC UTILITIES (1.8%) Huaneng Power International, Inc., Class H.............................. 1,664,000 1,899,117 National Grid Transco PLC.............. 335,036 2,276,041 ------------- 4,175,158 ------------- GAS UTILITIES (1.7%) Centrica PLC........................... 557,900 1,620,684 Hong Kong and China Gas Co., Ltd............................. 1,137,540 1,436,850 Snam Rete Gas S.p.A.................... 256,300 1,008,247 ------------- 4,065,781 ------------- Total Common Stocks (Cost of $208,393,913)............... 225,968,741 ------------- WARRANTS (0.2%) UNITS FINANCIALS (0.2%) BANKS (0.2%) Siam Commercial Bank Public Co., Ltd. (a) Expires 06/22/04 (Cost of $359,604)................... 2,771,666 401,882 ------------- SHARES VALUE ----------- ------------- INVESTMENT MANAGEMENT FUND (0.1%) Thai Fund, Inc. (Cost of $153,085)................... 37,100 $ 207,018 ------------- SHORT-TERM OBLIGATION (6.4%) PAR Repurchase agreement with State Street Bank & Trust Co., dated 06/30/03, due 07/01/03 at 0.950%, collateralized by a U.S. Treasury Bill and a U.S. Treasury Bond with maturities to 11/15/09, market value $15,535,000 (repurchase proceeds $15,216,402) (Cost of $15,216,000)................ $15,216,000 15,216,000 ------------- TOTAL INVESTMENTS (102.0%) (Cost of $224,122,602) (f)........... 241,793,641 ------------- OTHER ASSETS & LIABILITIES, NET (-2.0%).... (4,651,094) ------------- NET ASSETS (100.0%)........................ $ 237,142,547 ============= NOTES TO SCHEDULE OF INVESTMENTS: (a) Non-income producing. (b) Security purchased on a when-issued basis. (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 June 30, 2003, the value of this security amounted to less than $1, which represents less than 0.1% of net assets. (d) Represents fair value as determined in good faith under the direction of the Board of Directors. (e) Rounds to less than $1. (f) Cost for both financial statement and federal income tax purposes is the same. SUMMARY OF SECURITIES % OF TOTAL BY COUNTRY VALUE INVESTMENTS - -------------------------------------------------------------------------------- United Kingdom............................. $58,755,758 24.3% Japan ..................................... 41,671,235 17.2 United States*............................. 17,183,098 7.1 France..................................... 16,964,892 7.0 Spain ..................................... 13,877,127 5.7 Thailand................................... 10,795,065 4.5 Netherlands................................ 10,770,051 4.5 Italy ..................................... 10,274,981 4.2 Switzerland................................ 10,052,719 4.2 Australia.................................. 8,572,094 3.5 South Korea................................ 5,836,731 2.4 Ireland.................................... 4,456,364 1.8 Mexico..................................... 4,423,147 1.8 Israel..................................... 3,661,436 1.5 Taiwan..................................... 3,276,000 1.4 Finland.................................... 3,069,297 1.3 See Accompanying Notes to Financial Statements 85 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA INTERNATIONAL STOCK FUND (CONT.) JUNE 30, 2003 (UNAUDITED) Summary of Securities % of Total by Country (continued) Value Investments - -------------------------------------------------------------------------------- China ..................................... $ 2,933,016 1.2% India ..................................... 2,826,530 1.2 Hong Kong.................................. 2,557,116 1.1 Germany.................................... 2,179,770 0.9 Bermuda.................................... 2,052,615 0.8 Denmark.................................... 1,698,749 0.7 Sweden..................................... 1,221,227 0.5 Singapore.................................. 1,110,436 0.5 Canada..................................... 958,227 0.4 Russian Federation......................... 615,960 0.3 ------------ ----- $241,793,641 100.0% ============ ===== * 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 JUNE 30, 2003 (UNAUDITED) SHARES VALUE ----------- ------------- COMMON STOCKS (96.1%) CONSUMER DISCRETIONARY (17.3%) AUTO COMPONENTS (0.7%) Gentex Corp. (a)....................... 218,700 $ 6,694,407 ------------- HOTELS, RESTAURANTS & LEISURE (5.0%) Brinker International, Inc. (a)........ 395,440 14,243,749 Darden Restaurants, Inc................ 606,400 11,509,472 MGM Mirage (a)......................... 223,900 7,652,902 Outback Steakhouse, Inc................ 178,950 6,979,050 Starwood Hotels & Resorts Worldwide, Inc....................... 260,400 7,444,836 ------------- 47,830,009 ------------- LEISURE EQUIPMENT & PRODUCTS (0.4%) Mattel, Inc............................ 212,690 4,024,095 ------------- MEDIA (5.5%) Cox Radio, Inc., Class A (a)........... 493,900 11,414,029 Hispanic Broadcasting Corp. (a)........ 526,300 13,394,335 InterActiveCorp (a).................... 271,200 10,731,384 Interpublic Group of Companies, Inc....................... 419,600 5,614,248 SHARES VALUE ----------- ------------- Univision Communications, Inc., Class A (a).......................... 235,150 $ 7,148,560 Westwood One, Inc. (a)................. 141,300 4,794,309 ------------- 53,096,865 ------------- MULTI-LINE RETAIL (1.9%) Dollar Tree Stores, Inc. (a)........... 148,100 4,699,213 Family Dollar Stores, Inc.............. 191,100 7,290,465 Kohl's Corp. (a)....................... 121,500 6,242,670 ------------- 18,232,348 ------------- SPECIALTY RETAIL (3.8%) Bed Bath & Beyond, Inc. (a)............ 356,700 13,843,527 Chico's FAS, Inc. (a).................. 226,300 4,763,615 Williams-Sonoma, Inc. (a).............. 634,000 18,512,800 ------------- 37,119,942 ------------- CONSUMER STAPLES (0.4%) FOOD & DRUG RETAILING (0.4%) Whole Foods Market, Inc. (a)........... 83,900 3,987,767 ------------- ENERGY (9.4%) ENERGY EQUIPMENT & SERVICES (5.3%) BJ Services Co. (a).................... 470,900 17,592,824 Nabors Industries Ltd. (a)............. 167,650 6,630,558 National-Oilwell, Inc. (a)............. 403,700 8,881,400 Noble Corp. (a)........................ 252,800 8,671,040 Patterson-UTI Energy, Inc. (a)......... 278,850 9,034,740 ------------- 50,810,562 ------------- OIL & GAS (4.1%) Apache Corp............................ 227,372 14,792,823 Murphy Oil Corp. ...................... 139,700 7,348,220 Valero Energy Corp..................... 295,100 10,720,983 XTO Energy, Inc........................ 321,000 6,455,310 ------------- 39,317,336 ------------- FINANCIALS (5.7%) DIVERSIFIED FINANCIALS (1.6%) Legg Mason, Inc........................ 83,800 5,442,810 Moody's Corp........................... 107,950 5,690,044 Providian Financial Corp. (a).......... 528,400 4,892,984 ------------- 16,025,838 ------------- INSURANCE (4.1%) Ambac Financial Group, Inc............. 249,100 16,502,875 Arthur J. Gallagher & Co............... 353,250 9,608,400 Stancorp Financial Group, Inc.......... 253,150 13,219,493 ------------- 39,330,768 ------------- See Accompanying Notes to Financial Statements 86 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- SHARES VALUE ----------- ------------- HEALTH CARE (27.2%) BIOTECHNOLOGY (1.3%) Biogen, Inc. (a)....................... 49,650 $ 1,886,700 Gilead Sciences, Inc. (a).............. 136,900 7,608,902 MedImmune, Inc. (a).................... 76,850 2,795,034 ------------- 12,290,636 ------------- HEALTH CARE EQUIPMENT & SUPPLIES (2.3%) Boston Scientific Corp. (a)............ 133,650 8,166,015 Hillenbrand Industries, Inc............ 87,200 4,399,240 Varian Medical Systems, Inc. (a)....... 161,140 9,276,830 ------------- 21,842,085 ------------- HEALTH CARE PROVIDERS & SERVICES (18.0%) AmerisourceBergen Corp................. 300,400 20,832,740 Anthem, Inc. (a)....................... 149,550 11,537,782 Caremark Rx, Inc. (a).................. 1,565,750 40,208,460 Community Health Systems, Inc. (a)............................. 331,080 6,386,533 DaVita, Inc. (a)....................... 357,750 9,580,545 First Health Group Corp. (a)........... 264,000 7,286,400 Laboratory Corporation of American Holdings (a)................ 255,950 7,716,892 Lincare Holdings, Inc. (a)............. 307,200 9,679,872 UnitedHealth Group, Inc................ 349,200 17,547,300 WebMD Corp. (a)........................ 928,000 10,050,240 WellChoice, Inc. (a)................... 175,900 5,150,352 WellPoint Health Networks, Inc. (a)............................. 328,000 27,650,400 ------------- 173,627,516 ------------- PHARMACEUTICALS (5.6%) ANDRX Corp. (a)........................ 570,800 11,358,920 Barr Laboratories, Inc. (a)............ 332,575 21,783,662 Biovail Corp. (a)...................... 322,600 15,181,556 Teva Pharmaceutical Industries Ltd., ADR............................ 93,800 5,340,034 ------------- 53,664,172 ------------- INDUSTRIALS (11.5%) AEROSPACE & DEFENSE (1.0%) Raytheon Co............................ 306,150 10,053,966 ------------- COMMERCIAL SERVICES & SUPPLIES (6.9%) BISYS Group, Inc. (a).................. 524,550 9,635,984 ChoicePoint, Inc. (a).................. 302,790 10,452,311 Corporate Executive Board Co. (a)...... 197,700 8,070,114 Education Management Corp. (a)......... 167,300 8,897,014 Republic Services, Inc. (a)............ 414,810 9,403,743 Robert Half International, Inc. (a).... 425,100 8,051,394 Weight Watchers International, Inc. (a)............................. 263,175 11,971,831 ------------- 66,482,391 ------------- SHARES VALUE ----------- ------------- ELECTRICAL EQUIPMENT (0.5%) American Power Conversion Corp......... 292,400 $ 4,558,516 ------------- TRADING COMPANIES & DISTRIBUTORS (3.1%) CDW Corp. (a).......................... 204,900 9,384,420 Fastenal Co. .......................... 258,000 8,756,520 W.W. Grainger, Inc..................... 238,710 11,162,080 ------------- 29,303,020 ------------- INFORMATION TECHNOLOGY (24.4%) COMMUNICATIONS EQUIPMENT (2.5%) 3Com Corp. (a)......................... 831,300 3,890,484 Scientific-Atlanta, Inc................ 352,600 8,405,984 UTStarcom, Inc. (a).................... 328,400 11,681,188 ------------- 23,977,656 ------------- ELECTRONIC EQUIPMENT & INSTRUMENTS (3.1%) Amphenol Corp., Class A (a)............ 98,700 4,621,134 Au Optronics Corp., ADR................ 737,100 5,100,732 Jabil Circuit, Inc. (a)................ 656,550 14,509,755 Symbol Technologies, Inc. ............. 461,800 6,008,018 ------------- 30,239,639 ------------- INTERNET SOFTWARE & SERVICES (0.5%) Check Point Software Technologies Ltd. (a)................ 236,500 4,623,575 ------------- SEMICONDUCTOR EQUIPMENT & PRODUCTS (8.8%) Agere Systems, Inc. (a)................ 3,712,200 8,649,426 Altera Corp. (a)....................... 260,000 4,264,000 Amkor Technology, Inc. (a)............. 387,000 5,085,180 Fairchild Semiconductor International, Inc. (a).............. 449,500 5,749,105 Marvell Technology Group Ltd. (a)...... 286,100 9,833,257 Microchip Technology, Inc.............. 701,450 17,276,714 National Semiconductor Corp. (a)....... 403,000 7,947,160 Novellus Systems, Inc. (a)............. 328,200 12,019,012 Taiwan Semiconductor Manufacturing Co., Ltd., ADR (a)..... 948,200 9,557,856 Teradyne, Inc. (a)..................... 270,430 4,681,143 ------------- 85,062,853 ------------- SOFTWARE (9.5%) Amdocs Ltd. (a)........................ 721,300 17,311,200 BMC Software, Inc. (a)................. 437,600 7,146,008 Electronic Arts, Inc. (a).............. 253,350 18,745,366 Intuit, Inc. (a)....................... 171,625 7,642,461 Mercury Interactive Corp. (a).......... 310,150 11,974,892 Siebel Systems, Inc. (a)............... 620,005 5,914,848 Symantec Corp. (a)..................... 197,850 8,677,701 VERITAS Software Corp. (a)............. 476,150 13,651,220 ------------- 91,063,696 ------------- See Accompanying Notes to Financial Statements 87 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA SPECIAL FUND (CONT.) JUNE 30, 2003 (UNAUDITED) SHARES VALUE ----------- ------------- MATERIALS (0.2%) CHEMICALS (0.2%) Methanex Corp. ........................ 150,300 $ 1,606,557 ------------- Total Common Stocks (Cost of $774,398,125)............... 924,866,215 ------------- CONVERTIBLE PREFERRED STOCK (0.0%) INFORMATION TECHNOLOGY (0.0%) INTERNET SOFTWARE & SERVICES (0.0%) Network Specialists, Inc., Series A (a)(b)(c) (Cost of $3,000,000)................. 394,218 3,942 ------------- SHORT-TERM OBLIGATION (3.4%) PAR Repurchase agreement with State Street Bank & Trust Co., dated 06/30/03, due 07/01/03 at 0.950%, collateralized by a U.S. Treasury Note and a U.S. Treasury Bond with maturities to 11/15/08, market value $33,349,144 (repurchase proceeds $32,690,863) (Cost of $32,690,000)................ $32,690,000 32,690,000 ------------- TOTAL INVESTMENTS (99.5%) (Cost of $810,088,125) (d)........... 957,560,157 ------------- OTHER ASSETS & LIABILITIES, NET (0.5%)..... 4,442,072 ------------- NET ASSETS (100.0%)........................ $ 962,002,229 ============= 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 June 30, 2003, the value of this security amounted to $3,942, which represents less than 0.1% of net assets. (c) Represents fair value as determined in good faith under the direction of the Board of Directors. (d) Cost for both financial statement and federal income tax purposes is the same. ACRONYM NAME ------- ---- ADR American Depositary Receipt COLUMBIA SMALL CAP FUND JUNE 30, 2003 (UNAUDITED) SHARES VALUE ----------- ------------- COMMON STOCKS (96.7%) CONSUMER DISCRETIONARY (18.0%) AUTO COMPONENTS (1.9%) Autoliv, Inc........................... 197,200 $ 5,340,176 Gentex Corp. (a)....................... 171,550 5,251,145 ------------- 10,591,321 ------------- HOTELS, RESTAURANTS & LEISURE (4.8%) Ameristar Casinos, Inc. (a)............ 336,400 3,896,375 Boyd Gaming Corp. (a).................. 153,900 2,656,314 O'Charley's, Inc. (a).................. 143,700 3,093,861 Outback Steakhouse, Inc................ 102,572 4,000,308 P.F. Chang's China Bistro, Inc. (a).... 92,900 4,571,609 Panera Bread Co., Class A (a).......... 140,900 5,636,000 Ruby Tuesday, Inc...................... 122,000 3,017,060 ------------- 26,871,527 ------------- HOUSEHOLD DURABLES (1.6%) Harman International Industries, Inc. ................................ 111,300 8,808,282 ------------- MEDIA (4.2%) Entercom Communications Corp. (a)............................ 176,400 8,645,364 Entravision Communications Corp., Class A (a)................... 356,000 4,040,600 Lamar Advertising Co. (a).............. 146,312 5,151,646 Radio One, Inc., Class D (a)........... 316,802 5,629,572 ------------- 23,467,182 ------------- SPECIALTY RETAIL (5.5%) Advanced Auto Parts, Inc. (a).......... 64,600 3,934,140 Cost Plus, Inc. (a).................... 81,321 2,899,907 Electronics Boutique Holdings Corp. (a)............................ 92,200 2,130,742 GameStop Corp. (a)..................... 156,700 2,024,564 Hollywood Entertainment Corp. (a)............................ 253,900 4,367,080 Linens 'n Things, Inc. (a)............. 117,700 2,778,897 Michaels Stores, Inc. (a).............. 126,975 4,832,668 O'Reilly Automotive, Inc. (a).......... 94,792 3,165,105 PETCO Animal Supplies, Inc. (a)........ 69,100 1,502,234 PETsMART, Inc.......................... 192,600 3,210,642 ------------- 30,845,979 ------------- ENERGY (10.6%) ENERGY EQUIPMENT & SERVICES (7.0%) Cal Dive International, Inc. (a)....... 191,800 4,181,240 Grey Wolf, Inc. (a).................... 509,800 2,059,592 See Accompanying Notes to Financial Statements 88 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- SHARES VALUE ----------- ------------- Key Energy Services, Inc. (a).......... 465,300 $ 4,988,016 Maverick Tube Corp. (a)................ 66,200 1,267,730 National-Oilwell, Inc. (a)............. 243,300 5,352,600 Oceaneering International, Inc. (a).... 101,900 2,603,545 Patterson-UTI Energy, Inc. (a)......... 133,900 4,338,360 Precision Drilling Corp. (a)........... 183,900 6,944,064 TETRA Technologies, Inc. (a)........... 67,100 1,989,515 Varco International, Inc. (a).......... 269,900 5,290,040 ------------- 39,014,702 ------------- OIL & GAS (3.6%) Chesapeake Energy Corp................. 393,700 3,976,370 Patina Oil & Gas Corp.................. 106,506 3,424,176 Premcor, Inc. (a)...................... 283,250 6,104,038 XTO Energy, Inc........................ 335,200 6,740,872 ------------- 20,245,456 ------------- FINANCIALS (2.1%) DIVERSIFIED FINANCIALS (0.2%) iPayment, Inc. (a)..................... 42,200 1,007,314 ------------- INSURANCE (1.9%) IPC Holdings Ltd. (a).................. 97,010 3,249,835 Philadelphia Consolidated Holding Corp. (a).................... 3,100 125,240 ProAssurance Corp. (a)................. 82,700 2,232,073 Scottish Annuity & Life Holdings Ltd.................................. 259,000 5,234,390 ------------- 10,841,538 ------------- HEALTH CARE (21.9%) BIOTECHNOLOGY (3.7%) Connetics Corp. (a).................... 389,300 5,827,821 ICOS Corp. (a)......................... 127,150 4,672,762 Martek Biosciences Corp. (a)........... 86,100 3,697,134 Neurocrine Biosciences, Inc. (a)....... 80,955 4,042,893 SangStat Medical Corp. (a)............. 173,100 2,265,879 ------------- 20,506,489 ------------- HEALTH CARE EQUIPMENT & SUPPLIES (2.5%) CTI Molecular Imaging, Inc. (a)........ 154,700 2,925,377 Kyphon, Inc. (a)....................... 203,400 3,075,408 Orthofix International NV (a).......... 98,500 3,224,890 Wilson Greatbatch Technologies, Inc. (a)............................. 127,310 4,595,891 ------------- 13,821,566 ------------- HEALTH CARE PROVIDERS & SERVICES (12.5%) Caremark Rx, Inc. (a).................. 446,622 11,469,253 Cerner Corp. (a)....................... 117,100 2,687,445 Cobalt Corp. (a)....................... 145,400 2,987,970 Community Health Systems, Inc. (a)............................. 235,500 4,542,795 Coventry Health Care, Inc. (a)......... 142,100 6,559,336 SHARES VALUE ----------- ------------- DaVita, Inc. (a)....................... 324,031 $ 8,677,550 First Health Group Corp. (a)........... 363,356 10,028,626 Henry Schein, Inc. (a)................. 155,251 8,125,837 IMPAC Medical Systems, Inc. (a)........ 136,200 2,843,856 Mid Atlantic Medical Services, Inc. (a)............................. 168,300 8,802,090 PacifiCare Health Systems, Inc. (a)............................. 61,200 3,018,996 ------------- 69,743,754 ------------- PHARMACEUTICALS (3.2%) ANDRX Corp. (a)........................ 316,800 6,304,320 AtheroGenics, Inc. (a)................. 185,698 2,772,471 CIMA Labs, Inc. (a).................... 133,900 3,600,571 Trimeris, Inc. (a)..................... 122,200 5,582,096 ------------- 18,259,458 ------------- INDUSTRIALS (13.0%) AIRLINES (0.7%) Atlantic Coast Airlines Holdings, Inc. (a)............................. 169,200 2,282,508 SkyWest, Inc........................... 91,000 1,734,460 ------------- 4,016,968 ------------- COMMERCIAL SERVICES & SUPPLIES (8.5%) BISYS Group, Inc. (a).................. 278,000 5,106,860 Career Education Corp. (a)............. 12,570 860,039 Corinthian Colleges, Inc. (a).......... 118,000 5,731,260 Corporate Executive Board Co. (a)...... 147,960 6,039,727 Education Management Corp. (a)......... 211,671 11,256,664 Global Payments, Inc................... 114,636 4,069,578 Resources Connection, Inc. (a)......... 223,900 5,342,254 Stericycle, Inc. (a)................... 90,996 3,501,526 Waste Connections, Inc. (a)............ 151,800 5,320,590 ------------- 47,228,498 ------------- CONSTRUCTION & ENGINEERING (2.1%) Chicago Bridge & Iron Co., NY Registered Shares................. 204,400 4,635,792 Jacobs Engineering Group, Inc. (a)............................. 107,508 4,531,462 URS Corp. (a).......................... 122,390 2,381,709 ------------- 11,548,963 ------------- MACHINERY (1.2%) Albany International Corp., Class A.............................. 179,000 4,904,600 Flowserve Corp. (a).................... 101,800 2,002,406 ------------- 6,907,006 ------------- ROAD & RAIL (0.5%) Yellow Corp. (a)....................... 116,480 2,696,512 ------------- See Accompanying Notes to Financial Statements 89 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA SMALL CAP FUND (CONT.) JUNE 30, 2003 (UNAUDITED) SHARES VALUE ----------- ------------- INFORMATION TECHNOLOGY (28.7%) COMMUNICATIONS EQUIPMENT (3.4%) Corvis Corp. (a)....................... 1,004,500 $ 1,506,750 F5 Networks, Inc. (a).................. 218,900 3,688,465 Foundry Networks, Inc. (a)............. 294,010 4,233,744 NetScreen Technologies, Inc. (a)....... 293,500 6,618,425 Polycom, Inc. (a)...................... 215,100 2,981,286 ------------- 19,028,670 ------------- COMPUTERS & PERIPHERALS (1.5%) Advanced Digital Information Corp. (a)............................ 169,100 1,689,309 Electronics for Imaging, Inc. (a)...... 334,820 6,793,498 ------------- 8,482,807 ------------- ELECTRONIC EQUIPMENT & INSTRUMENTS (3.8%) Amphenol Corp., Class A (a)............ 330,855 15,490,631 Benchmark Electronics, Inc. (a)........ 191,600 5,893,616 ------------- 21,384,247 ------------- INFORMATION TECHNOLOGY CONSULTING & SERVICES (1.9%) CACI International, Inc., Class A (a).......................... 105,000 3,601,500 Cognizant Technology Solutions Corp. (a)............................ 283,500 6,906,060 ------------- 10,507,560 ------------- INTERNET SOFTWARE & SERVICES (1.8%) Internet Security Systems, Inc. (a).... 319,000 4,622,310 webMethods, Inc. (a)................... 440,700 3,582,891 Websense, Inc. (a)..................... 119,300 1,868,238 ------------- 10,073,439 ------------- SEMICONDUCTOR EQUIPMENT & PRODUCTS (6.8%) Credence Systems Corp. (a)............. 498,500 4,222,295 DuPont Photomasks, Inc. (a)............ 64,500 1,214,535 FEI Co. (a)............................ 66,200 1,241,912 Genesis Microchip, Inc. (a)............ 95,300 1,290,362 Integrated Circuit Systems, Inc. (a)... 347,400 3,838,770 Lattice Semiconductor Corp. (a)........ 266,800 2,195,764 Microsemi Corp. (a).................... 417,500 6,680,000 Photronics, Inc. (a)................... 264,186 4,610,046 Pixelworks, Inc. (a)................... 209,000 1,241,460 PMC-Sierra, Inc. (a)................... 146,700 1,720,791 Power Integrations, Inc. (a)........... 22,800 553,771 RF Micro Devices, Inc. (a)............. 713,700 4,296,474 Ultratech, Inc. (a).................... 254,500 4,705,705 ------------- 37,811,885 ------------- SHARES VALUE ----------- ------------- SOFTWARE (9.5%) Activision, Inc. (a)................... 358,200 $ 4,627,944 Amdocs Ltd. (a)........................ 284,900 6,837,600 Autodesk, Inc.......................... 223,400 3,610,144 Citrix Systems, Inc.................... 145,700 2,966,452 Documentum, Inc. (a)................... 286,231 5,630,164 Fair, Isaac and Co., Inc............... 108,900 5,602,905 FileNET Corp. (a)...................... 169,000 3,048,760 Macromedia, Inc. (a)................... 365,800 7,696,432 Mercury Interactive Corp. (a).......... 137,500 5,308,875 Micromuse, Inc. (a).................... 161,600 1,291,184 MicroStrategy, Inc., Class A (a)....... 81,400 2,965,402 National Instruments Corp. (a)......... 71,860 2,714,871 THQ, Inc. (a).......................... 500 9,000 Verity, Inc. (a)....................... 45,500 576,030 ------------- 52,885,763 ------------- MATERIALS (1.6%) CHEMICALS (1.6%) Minerals Technologies, Inc............. 105,600 5,138,496 OM Group, Inc.......................... 271,500 3,999,195 ------------- 9,137,691 ------------- TELECOMMUNICATION SERVICES (0.3%) WIRELESS TELECOMMUNICATION SERVICES (0.3%) Dobson Communications Corp., Class A (a).......................... 331,200 1,805,040 ------------- UTILITIES (0.5%) MULTI-UTILITIES & UNREGULATED POWER (0.5%) Calpine Corp. (a)...................... 431,200 2,845,920 ------------- Total Common Stocks (Cost of $436,441,002)............... 540,385,537 ------------- SHORT-TERM OBLIGATION (3.3%) PAR Repurchase agreement with State Street Bank & Trust Co., dated 06/30/03, due 07/01/03 at 0.950%, collateralized by a U.S. Treasury Bond maturing 11/15/10, market value of $18,793,500 (repurchase proceeds $18,420,486) (Cost of $18,420,000)................ $18,420,000 18,420,000 ------------- TOTAL INVESTMENTS (100.0%) (Cost of $454,861,002) (b)........... 558,805,537 ------------- OTHER ASSETS & LIABILITIES, NET (0.0%)..... (109,581) ------------- NET ASSETS (100.0%)........................ $ 558,695,956 ============= NOTES TO SCHEDULE OF INVESTMENTS: (a) Non-income producing. (b) Cost for both financial statement and federal income tax purposes is the same. See Accompanying Notes to Financial Statements 90 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA REAL ESTATE EQUITY FUND JUNE 30, 2003 (UNAUDITED) SHARES VALUE ----------- ------------- COMMON STOCKS (93.1%) CONSUMER DISCRETIONARY (5.8%) HOTELS, RESTAURANTS & LEISURE (5.8%) Hilton Hotels Corp..................... 1,211,700 $ 15,497,643 Marriott International, Inc., Class A.............................. 214,200 8,229,564 Starwood Hotels & Resorts Worldwide, Inc....................... 854,800 24,438,732 ------------- 48,165,939 ------------- FINANCIALS (80.4%) REAL ESTATE (80.4%) Alexandria Real Estate Equities, Inc. ................................ 663,100 29,839,500 American Financial Realty Trust....... 563,600 8,403,276 Apartment Investment & Management Co., Class A............. 480,600 16,628,760 Archstone-Smith Trust.................. 644,771 15,474,504 AvalonBay Communities, Inc............ 476,400 20,313,696 Boston Properties, Inc................. 473,900 20,756,820 CarrAmerica Realty Corp................ 275,500 7,661,655 Catellus Development Corp. (a)......... 386,500 8,503,000 Centerpoint Properties Trust.......... 257,300 15,759,625 Chelsea Property Group, Inc........... 372,400 15,011,444 Cousins Properties, Inc................ 1,615,050 45,059,895 Duke Realty Corp...................... 704,900 19,419,995 Equity Office Properties Trust........ 934,537 25,241,844 Equity Residential..................... 608,506 15,790,731 First Industrial Realty Trust, Inc. .. 268,300 8,478,280 General Growth Properties, Inc......... 614,960 38,398,102 iStar Financial, Inc................... 1,134,350 41,403,775 Kimco Realty Corp...................... 746,600 28,296,140 Liberty Property Trust................. 390,300 13,504,380 Manufactured Home Communities, Inc. ................................ 179,900 6,316,289 Newcastle Investment Corp.............. 623,700 12,212,046 Pan Pacific Retail Properties, Inc..... 287,800 11,324,930 Parkway Properties, Inc................ 93,100 3,914,855 Prentiss Properties Trust............. 204,000 6,117,960 ProLogis Trust........................ 1,372,406 37,466,684 Public Storage, Inc.................... 617,032 20,898,874 Reckson Associates Realty Corp........ 234,000 4,881,240 Regency Centers Corp................... 832,500 29,120,850 Rouse Co............................... 778,400 29,657,040 Simon Property Group, Inc. ........... 1,033,256 40,327,982 SL Green Realty Corp.................. 240,200 8,380,578 SHARES VALUE ----------- ------------- St. Joe Co............................. 828,300 $ 25,842,960 Taubman Centers, Inc. ................. 412,700 7,907,332 United Dominion Realty Trust, Inc...... 508,000 8,747,760 Vornado Realty Trust................... 531,100 23,155,960 ------------- 670,218,762 ------------- MATERIALS (6.9%) PAPER & FOREST PRODUCTS (6.9%) Bowater, Inc........................... 728,900 27,297,305 International Paper Co................. 493,700 17,639,901 MeadWestvaco Corp...................... 508,100 12,550,070 ------------- 57,487,276 ------------- Total Common Stocks (Cost of $642,386,786)............... 775,871,977 ------------- SHORT-TERM OBLIGATION (6.2%) PAR Repurchase agreement with State Street Bank & Trust Co., dated 06/30/03, due 07/01/03 at 0.950% collateralized by U.S. Treasury Bonds with maturities to 06/30/04, market value of $52,283,514 (repurchase proceeds $51,257,353) (Cost of $51,256,000)................ $51,256,000 51,256,000 ------------- TOTAL INVESTMENTS (99.3%) (Cost of $693,642,786) (b)........... 827,127,977 ------------- OTHER ASSETS & LIABILITIES, NET (0.7%)..... 5,826,525 ------------- NET ASSETS (100.0%)........................ $ 832,954,502 ============= NOTES TO SCHEDULE OF INVESTMENTS: (a) Non-income producing. (b) Cost for both financial statement and federal income tax purposes is the same. COLUMBIA TECHNOLOGY FUND JUNE 30, 2003 (UNAUDITED) SHARES VALUE ----------- ------------- COMMON STOCKS (100.0%) CONSUMER DISCRETIONARY (9.9%) HOUSEHOLD DURABLES (0.7%) Garmin Ltd. (a)........................ 2,500 $ 99,675 ------------- INTERNET & CATALOG RETAIL (0.2%) 1-800-FLOWERS.COM, Inc., Class A (a).......................... 3,700 30,488 ------------- LEISURE EQUIPMENT & PRODUCTS (0.9%) Marvel Enterprises, Inc. (a)........... 6,750 128,925 ------------- See Accompanying Notes to Financial Statements 91 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA TECHNOLOGY FUND (CONT.) JUNE 30, 2003 (UNAUDITED) SHARES VALUE ----------- ------------- MEDIA (8.1%) 4Kids Entertainment, Inc. (a).......... 17,000 $ 316,200 AOL Time Warner, Inc. (a).............. 7,500 120,675 Cablevision Systems Corp., Class A (a).......................... 7,200 149,472 Catalina Marketing Corp. (a)........... 800 14,120 InterActiveCorp (a).................... 4,000 158,280 Pixar, Inc. (a)........................ 1,700 103,428 TiVo, Inc. (a)......................... 4,000 48,720 XM Satellite Radio Holdings, Inc., Class A (a).................... 25,900 286,195 ------------- 1,197,090 ------------- FINANCIALS (0.1%) DIVERSIFIED FINANCIALS (0.1%) Knight Trading Group, Inc. (a)......... 3,000 18,660 ------------- HEALTH CARE (5.4%) BIOTECHNOLOGY (3.6%) Aphton Corp. (a)....................... 20,000 164,800 Exact Sciences Corp. (a)............... 9,500 104,120 Gilead Sciences, Inc. (a).............. 1,800 100,044 ICOS Corp. (a)......................... 1,960 72,030 Neurocrine Biosciences, Inc. (a)....... 1,800 89,892 ------------- 530,886 ------------- HEALTH CARE EQUIPMENT & SUPPLIES (0.2%) Varian Medical Systems, Inc. (a)....... 500 28,785 ------------- HEALTH CARE PROVIDERS & SERVICES (0.9%) WebMD Corp. (a)........................ 12,000 129,960 ------------- PHARMACEUTICALS (0.7%)................... Pain Therapeutics, Inc. (a)............ 15,000 96,900 ------------- INDUSTRIALS (2.0%) AEROSPACE & DEFENSE (0.6%) Mercury Computer Systems, Inc. (a)............................. 5,200 94,432 ------------- COMMERCIAL SERVICES & SUPPLIES (1.3%) Alliance Data Systems Corp. (a)........ 4,000 93,600 Global Payments, Inc................... 2,700 95,850 ------------- 189,450 ------------- ELECTRICAL EQUIPMENT (0.1%) RF Monolithics, Inc. (a)............... 3,300 16,071 ------------- SHARES VALUE ----------- ------------- INFORMATION TECHNOLOGY (75.7%) COMMUNICATIONS EQUIPMENT (11.5%) ADC Telecommunications, Inc. (a)............................. 58,000 $ 135,024 ADTRAN, Inc. (a)....................... 2,600 133,354 Advanced Fibre Communications, Inc. (a)............. 5,300 86,231 Brocade Communications Systems, Inc. (a).................... 5,900 34,751 Comverse Technology, Inc. (a).......... 12,500 187,875 Foundry Networks, Inc. (a)............. 9,000 129,600 Inter-Tel, Inc......................... 18,000 381,960 Juniper Networks, Inc. (a)............. 9,000 111,330 McData Corp., Class B (a).............. 6,000 87,000 Motorola, Inc.......................... 30,000 282,900 Network Equipment Technologies, Inc. (a)............................. 3,500 29,470 PC-Tel, Inc. (a)....................... 4,000 47,440 UTStarcom, Inc. (a).................... 1,200 42,684 ------------- 1,689,619 ------------- COMPUTERS & PERIPHERALS (7.2%) Dell Computer Corp. (a)................ 4,650 148,614 Dot Hill Systems Corp. (a)............. 24,000 314,400 Electronics for Imaging, Inc. (a)...... 15,500 314,495 Lexmark International, Inc., (a)....... 1,000 70,770 Neoware Systems, Inc. (a).............. 12,000 184,080 Quantum Corp. (a)...................... 5,000 20,250 ------------- 1,052,609 ------------- ELECTRONIC EQUIPMENT & INSTRUMENTS (1.5%) Pemstar, Inc. (a)...................... 31,000 129,890 Symbol Technologies, Inc. ............. 7,500 97,575 ------------- 227,465 ------------- INFORMATION TECHNOLOGY CONSULTING & SERVICES (2.9%) Affiliated Computer Services, Inc., Class A (a).................... 1,500 68,595 Computer Sciences Corp. (a)............ 3,450 131,514 Perot Systems Corp., Class A (a)....... 3,800 43,168 Sapient Corp. (a)...................... 50,000 138,500 Wipro Ltd., ADR........................ 1,650 38,033 ------------- 419,810 ------------- INTERNET SOFTWARE & SERVICES (9.5%)...... Art Technology Group, Inc. (a)......... 110,000 176,000 Internet Initiative Japan, Inc., ADR (a).............................. 5,500 23,980 Internet Security Systems, Inc. (a).... 10,800 156,492 See Accompanying Notes to Financial Statements 92 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- SHARES VALUE ----------- ------------- NetEase.com, Inc., ADR (a)............. 7,500 $ 273,450 Radware Ltd. (a)....................... 3,500 59,955 Sify Ltd., ADR (a)..................... 11,600 71,224 SINA Corp., Registered Shares (a)...... 4,000 83,581 Sohu.com, Inc. (a)..................... 10,000 341,600 Yahoo!, Inc. (a)....................... 6,500 212,940 ------------- 1,399,222 ------------- OFFICE ELECTRONICS (1.0%) Canon, Inc., ADR....................... 2,000 91,300 Zebra Technologies Corp., Class A (a).......................... 800 60,152 ------------- 151,452 ------------- SEMICONDUCTOR EQUIPMENT & PRODUCTS (29.1%) ASML Holding NV, NY Registered Shares (a)................ 8,000 76,480 Broadcom Corp., Class A (a)............ 6,300 156,933 Cabot Microelectronics Corp. (a)....... 11,250 567,788 Cree, Inc. (a)......................... 8,500 138,380 Infineon Technologies AG, ADR.......... 24,300 233,037 Intersil Corp., Class A (a)............ 24,250 645,292 Marvell Technology Group Ltd. (a)............................. 11,700 402,129 MIPS Technologies, Inc., Class A (a).......................... 28,000 71,680 MIPS Technologies, Inc., Class B (a).......................... 72,000 177,840 Mykrolis Corp. (a)..................... 3,000 30,450 NVIDIA Corp. (a)....................... 9,500 218,595 PDF Solutions, Inc. (a)................ 9,000 103,950 PMC-Sierra, Inc. (a)................... 59,000 692,070 QuickLogic Corp. (a)................... 10,000 32,200 Silicon Storage Technology, Inc. (a)............................. 40,000 167,600 Siliconware Precision Industries Co., ADR (a)......................... 115,400 369,280 White Electronic Designs Corp. (a)............................ 18,000 190,620 ------------- 4,274,324 ------------- SOFTWARE (13.0%)......................... Agile Software Corp. (a)............... 10,800 104,220 Autodesk, Inc.......................... 5,000 80,800 BEA Systems, Inc. (a).................. 8,100 87,966 BMC Software, Inc. (a)................. 7,200 117,576 Bottomline Technologies, Inc. (a)...... 4,000 32,280 Citrix Systems, Inc. (a)............... 3,000 61,080 Computer Associates International, Inc................... 9,000 200,520 SHARES VALUE ----------- ------------- Concur Technologies, Inc. (a).......... 25,000 $ 251,750 Informatica Corp. (a).................. 20,000 138,200 Legato Systems, Inc. (a)............... 13,500 113,265 MicroStrategy, Inc., Class A (a)....... 2,750 100,182 Network Associates, Inc. (a)........... 5,310 67,331 Novell, Inc. (a)....................... 23,000 70,840 Oracle Corp. (a)....................... 16,000 192,320 SAP AG, ADR............................ 5,500 160,710 VERITAS Software Corp. (a)............. 4,500 129,015 ------------- 1,908,055 ------------- TELECOMMUNICATION SERVICES (6.9%) DIVERSIFIED TELECOMMUNICATION SERVICES (0.6%) Time Warner Telecom, Inc., Class A (a).......................... 14,000 89,180 ------------- WIRELESS TELECOMMUNICATION SERVICES (6.3%) Dobson Communications Corp., Class A (a).......................... 8,000 43,600 Millicom International Cellular SA (a)...................... 11,500 301,415 Mobile Telesystems, ADR (a)............ 5,000 295,000 SBA Communications Corp. (a)........... 19,800 60,192 Vimpel-Communications, ADR (a)......... 5,000 232,200 ------------- 932,407 ------------- Total Common Stocks (Cost of $13,044,788)................ 14,705,465 ------------- SHORT-TERM OBLIGATION (1.2%) PAR Repurchase agreement with State Street Bank & Trust Co., dated 06/30/03, due 07/01/03 at 0.950%, collateralized by a U.S. Treasury Bond maturing 05/15/10, market value of $175,500 (repurchase proceeds $169,004) (Cost of $169,000)................... $169,000 169,000 ------------- TOTAL INVESTMENTS (101.2%) (Cost of $13,213,788) (b).............. 14,874,465 OTHER ASSETS & LIABILITIES, NET (-1.2%).... (169,696) ------------- NET ASSETS (100.0%)........................ $ 14,704,769 ============= NOTES TO SCHEDULE OF INVESTMENTS: (a) Non-income producing. (b) Cost for both financial statement and federal income tax purposes is the same. ACRONYM NAME ------- ---- ADR American Depositary Receipt See Accompanying Notes to Financial Statements 93 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA STRATEGIC VALUE FUND JUNE 30, 2003 (UNAUDITED) SHARES VALUE ----------- ------------- COMMON STOCKS (83.2%) CONSUMER DISCRETIONARY (13.9%) AUTO COMPONENTS (2.0%) Modine Manufacturing Co................ 106,000 $ 2,053,220 Nokian Renkaat Oyj..................... 62,000 3,194,935 ------------- 5,248,155 ------------- HOTELS, RESTAURANTS & LEISURE (1.3%) Carnival Corp.......................... 40,000 1,300,400 Fairmont Hotels & Resorts, Inc......... 50,000 1,170,000 McDonald's Corp........................ 50,000 1,103,000 ------------- 3,573,400 ------------- HOUSEHOLD DURABLES (1.6%) Ekornes ASA............................ 100,000 1,337,742 Makita Corp., ADR...................... 50,000 395,000 Matsushita Electric Industrial Co., Ltd., ADR....................... 50,000 502,500 Newell Rubbermaid, Inc................. 25,100 702,800 Stanley Works.......................... 45,000 1,242,000 ------------- 4,180,042 ------------- LEISURE EQUIPMENT & PRODUCTS (0.5%) Hasbro, Inc............................ 82,500 1,442,925 ------------- MEDIA (3.8%) AOL Time Warner, Inc. (a).............. 150,000 2,413,500 Belo Corp., Class A.................... 40,000 894,400 Entravision Communications Corp., Class A (a)................... 125,000 1,418,750 Hughes Electronics Corp................ 100,000 1,281,000 Liberty Media Corp. (a)................ 100,000 1,156,000 Martha Stewart Living Omnimedia, Inc., Class A (a)......... 50,000 469,500 Media General, Inc., Class A........... 22,500 1,287,000 Metro-Goldwyn-Mayer, Inc. (a).......... 50,000 621,000 Sinclair Broadcast Group, Inc., Class A (a).......................... 40,000 464,400 ------------- 10,005,550 ------------- MULTI-LINE RETAIL (2.0%) Dillard's, Inc., Class A............... 100,000 1,347,000 Dollar General Corp.................... 67,500 1,232,550 Stockmann Oyj, Class B................. 70,000 1,239,970 Target Corp............................ 37,500 1,419,000 ------------- 5,238,520 ------------- SPECIALTY RETAIL (2.4%) Borders Group, Inc. (a)................ 30,000 528,300 CarMax, Inc. (a)....................... 50,000 1,507,500 SHARES VALUE ----------- ------------- Circuit City Stores, Inc............... 50,000 $ 440,000 Friedman's, Inc., Class A.............. 150,000 1,705,500 Home Depot, Inc........................ 37,500 1,242,000 Talbots, Inc........................... 32,500 957,125 ------------- 6,380,425 ------------- TEXTILES, APPAREL & LUXURY GOODS (0.3%) Liz Claiborne, Inc..................... 20,000 705,000 ------------- CONSUMER STAPLES (4.3%) BEVERAGES (1.9%) Coca-Cola Co........................... 40,000 1,856,400 Coca-Cola Femsa SA de CV, ADR.......... 55,000 1,182,500 Companhia de Bebidas das Americas, ADR.................... 60,000 1,221,000 Fomento Economico Mexicano SA de CV, ADR........................ 20,000 824,000 ------------- 5,083,900 ------------- FOOD & DRUG RETAILING (0.7%) Longs Drug Stores Corp. ............... 67,500 1,120,500 United Natural Foods, Inc. (a)......... 30,000 844,200 ------------- 1,964,700 ------------- FOOD PRODUCTS (1.5%) Archer-Daniels-Midland Co.............. 100,000 1,287,000 Del Monte Foods Co. (a)................ 50,000 442,000 Delta and Pine Land Co................. 40,000 879,200 Tyson Foods, Inc., Class A............. 50,000 531,000 Wimm-Bill-Dann Foods, ADR (a).......... 38,100 773,430 ------------- 3,912,630 ------------- TOBACCO (0.2%) Altria Group, Inc...................... 10,000 454,400 ------------- ENERGY (9.2%) ENERGY EQUIPMENT & SERVICES (4.9%) Core Laboratories NV (a)............... 75,000 810,000 FMC Technologies, Inc. (a)............. 75,000 1,578,750 GlobalSantaFe Corp..................... 47,500 1,108,650 Grant Prideco, Inc. (a)................ 75,000 881,250 Halliburton Co......................... 67,500 1,552,500 Maverick Tube Corp. (a)................ 50,000 957,500 Newpark Resources, Inc. (a)............ 100,000 548,000 Schlumberger Ltd....................... 40,000 1,902,800 Transocean, Inc. (a)................... 75,000 1,647,750 Universal Compression Holdings, Inc. (a)............................. 100,000 2,086,000 ------------- 13,073,200 ------------- OIL & GAS (4.3%) Anadarko Petroleum Corp................ 20,000 889,400 BP PLC, ADR............................ 42,500 1,785,850 See Accompanying Notes to Financial Statements 94 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- SHARES VALUE ----------- ------------- Chesapeake Energy Corp................. 100,000 $ 1,010,000 China Petroleum and Chemical Corp., ADR........................... 50,000 1,207,500 Cimarex Energy Co. (a)................. 75,002 1,781,298 ConocoPhillips......................... 35,385 1,939,098 Stelmar Shipping Ltd. (a).............. 50,000 838,000 Unocal Corp............................ 30,000 860,700 YUKOS, ADR............................. 18,750 1,043,438 ------------- 11,355,284 ------------- FINANCIALS (11.8%) BANKS (4.9%) Banco Bradesco SA, ADR................. 45,000 373,600 Bank One Corp. ........................ 40,000 1,487,200 Banner Corp............................ 20,000 409,800 Columbia Banking Systems, Inc.......... 75,000 1,343,250 Fifth Third Bancorp.................... 37,500 2,150,250 HSBC Holdings PLC, ADR................. 1,453,031 1,477,750 PNC Financial Services Group........... 20,000 976,200 U.S. Bancorp........................... 75,000 1,837,500 Wachovia Corp.......................... 75,000 2,997,000 ------------- 13,052,550 ------------- DIVERSIFIED FINANCIALS (3.1%) Bank of New York Co., Inc.............. 40,000 1,150,000 Citigroup, Inc......................... 57,500 2,461,000 Financial Federal Corp................. 30,000 732,000 Freddie Mac............................ 15,000 761,550 GATX Corp.............................. 37,500 613,125 J.P. Morgan Chase & Co. ............... 50,000 1,709,000 Mellon Financial Corp.................. 30,000 832,500 ------------- 8,259,175 ------------- INSURANCE (3.0%) American International Group, Inc. ................................ 50,000 2,759,000 Aon Corp............................... 40,000 963,200 Chubb Corp............................. 10,000 600,000 John Hancock Financial Services, Inc. ................................ 30,000 921,900 Lincoln National Corp.................. 20,000 712,600 St. Paul Companies, Inc................ 20,000 730,200 Wesco Financial Corp. ................. 4,000 1,248,000 ------------- 7,934,900 ------------- REAL ESTATE (0.8%) Crescent Real Estate Equities Co....... 75,000 1,245,750 Post Properties, Inc................... 30,000 795,000 ------------- 2,040,750 ------------- SHARES VALUE ----------- ------------- HEALTH CARE (7.4%) HEALTH CARE EQUIPMENT & SUPPLIES (1.0%) Baxter International, Inc.............. 20,000 $ 520,000 Millipore Corp. (a).................... 50,000 2,218,500 ------------- 2,738,500 ------------- HEALTH CARE PROVIDERS & SERVICES (0.7%) McKesson Corp.......................... 40,000 1,429,600 Service Corp. International (a)........ 75,000 290,250 ------------- 1,719,850 ------------- PHARMACEUTICALS (5.7%) Abbott Laboratories.................... 40,000 1,750,400 Bristol-Myers Squibb Co................ 77,500 2,104,125 Elan Corp. PLC, ADR (a)................ 50,000 282,000 Gedeon Richter Ltd..................... 20,000 1,412,043 Mylan Laboratories, Inc................ 60,000 2,086,200 Novartis AG, ADR....................... 40,000 1,592,400 Pfizer, Inc............................ 50,000 1,707,500 Schering AG, ADR....................... 15,000 726,900 Schering-Plough Corp................... 65,000 1,209,000 Shire Pharmaceuticals Group PLC, ADR (a)......................... 50,000 985,000 Wyeth.................................. 30,000 1,366,500 ------------- 15,222,068 ------------- INDUSTRIALS (12.1%) AEROSPACE & DEFENSE (0.9%) Honeywell International, Inc........... 20,000 537,000 Northrop Grumman Corp. ................ 10,000 862,900 Raytheon Co............................ 30,000 985,200 ------------- 2,385,100 ------------- AIR FREIGHT & LOGISTICS (0.4%) Ryder System, Inc...................... 40,600 1,040,172 ------------- COMMERCIAL SERVICES & SUPPLIES (2.4%) Cendant Corp........................... 125,000 2,290,000 Copart, Inc. (a)....................... 86,400 816,480 G&K Services, Inc., Class A............ 30,000 888,000 Ionics, Inc. (a)....................... 47,500 1,062,575 Waste Management, Inc. ................ 55,000 1,324,950 ------------- 6,382,005 ------------- CONSTRUCTION & ENGINEERING (0.3%) Chicago Bridge & Iron Co., NY Registered Shares................. 40,000 907,200 ------------- ELECTRICAL EQUIPMENT (1.4%) Cooper Industries Ltd., Class A........ 40,000 1,652,000 Emerson Electric Co.................... 22,500 1,149,750 Rockwell Automation, Inc............... 35,000 834,400 ------------- 3,636,150 ------------- See Accompanying Notes to Financial Statements 95 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA STRATEGIC VALUE FUND (CONT.) JUNE 30, 2003 (UNAUDITED) SHARES VALUE ----------- ------------- INDUSTRIAL CONGLOMERATES (2.4%) 3M Co.................................. 35,000 $ 4,514,300 Textron, Inc........................... 50,000 1,951,000 ------------- 6,465,300 ------------- MACHINERY (3.6%) Caterpillar, Inc....................... 50,000 2,783,000 Eaton Corp............................. 30,000 2,358,300 Flowserve Corp. (a).................... 40,000 786,800 Joy Global, Inc. (a)................... 50,000 738,500 Navistar International Corp............ 40,000 1,305,200 Timken Co.............................. 50,000 875,500 Trinity Industries, Inc................ 30,000 555,300 ------------- 9,402,600 ------------- MARINE (0.4%) Alexander & Baldwin, Inc............... 40,000 1,061,200 ------------- ROAD & RAIL (0.3%) Kansas City Southern (a)............... 65,000 781,950 ------------- INFORMATION TECHNOLOGY (10.2%) COMMUNICATIONS EQUIPMENT (2.4%) Andrew Corp. (a)....................... 30,000 276,000 Comverse Technology, Inc. (a).......... 100,000 1,503,000 Corning, Inc. (a)...................... 100,000 739,000 Lucent Technologies, Inc. (a).......... 100,000 203,000 Motorola, Inc.......................... 67,500 636,525 Nortel Networks Corp. (a).............. 100,000 270,000 Polycom, Inc. (a)...................... 112,500 1,559,250 Telefonaktiebolaget LM Ericsson, ADR.................................. 50,000 531,500 Tellabs, Inc. (a)...................... 100,000 657,000 ------------- 6,375,275 ------------- COMPUTERS & PERIPHERALS (0.9%) SanDisk Corp. (a)...................... 50,000 2,017,500 Sun Microsystems, Inc. (a)............. 100,000 460,000 ------------- 2,477,500 ------------- ELECTRONIC EQUIPMENT & INSTRUMENTS (1.9%) Celestica, Inc. (a).................... 75,000 1,182,000 Flextronics International Ltd. (a)..... 75,000 779,250 Methode Electronics, Inc., Class A..... 100,000 1,075,000 Solectron Corp. (a).................... 125,000 467,500 Waters Corp. (a)....................... 50,000 1,456,500 ------------- 4,960,250 ------------- IT SERVICES (0.6%) Concord EFS, Inc. (a).................. 50,000 736,000 Convergys Corp. (a).................... 50,000 800,000 ------------- 1,536,000 ------------- SHARES VALUE ----------- ------------- SEMICONDUCTOR EQUIPMENT & PRODUCTS (3.5%) Atmel Corp. (a)........................ 100,000 $ 253,000 Axcelis Technologies, Inc. (a)......... 100,000 612,000 FEI Co. (a)............................ 60,000 1,125,600 Micron Technology, Inc................. 67,500 785,025 Mykrolis Corp. (a)..................... 100,000 1,015,000 Samsung Electronics Co., Ltd., GDR (b)........................ 12,500 1,859,375 Teradyne, Inc. (a)..................... 87,500 1,514,625 Texas Instruments, Inc................. 125,000 2,200,000 ------------- 9,364,625 ------------- SOFTWARE (0.9%) Autodesk, Inc.......................... 75,000 1,212,000 SAP AG, ADR............................ 37,500 1,095,750 ------------- 2,307,750 ------------- MATERIALS (8.1%) CHEMICALS (3.5%) A. Schulman, Inc....................... 75,000 1,204,500 Calgon Carbon Corp..................... 40,000 230,000 Dow Chemical Co........................ 50,000 1,548,000 Eastman Chemical Co.................... 50,000 1,583,500 H.B. Fuller Co......................... 40,000 880,800 Olin Corp.............................. 50,000 855,000 Potash Corp. of Saskatchewan, Inc.................................. 32,500 2,080,000 Rohm and Haas Co....................... 30,000 930,900 ------------- 9,312,700 ------------- CONSTRUCTION MATERIALS (0.3%) Martin Marietta Materials, Inc......... 20,000 672,200 ------------- CONTAINERS & PACKAGING (1.6%) Sealed Air Corp. (a)................... 47,500 2,263,850 Smurfit-Stone Container Corp. (a)............................ 55,000 716,650 Temple-Inland, Inc..................... 32,500 1,394,575 ------------- 4,375,075 ------------- METALS & MINING (0.9%) Barrick Gold Corp. .................... 50,000 895,000 CONSOL Energy, Inc..................... 62,500 1,421,250 ------------- 2,316,250 ------------- PAPER & FOREST PRODUCTS (1.8%) Abitibi-Consolidated, Inc.............. 50,000 320,500 Georgia-Pacific Corp................... 75,000 1,421,250 MeadWestvaco Corp...................... 37,500 926,250 Potlatch Corp.......................... 30,000 772,500 Votorantim Celulose e Papel SA, ADR.............................. 75,000 1,450,500 ------------- 4,891,000 ------------- See Accompanying Notes to Financial Statements 96 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- SHARES VALUE ----------- ------------- TELECOMMUNICATION SERVICES (4.3%) DIVERSIFIED TELECOMMUNICATION SERVICES (2.3%) AT&T Corp. (a)......................... 57,500 $ 1,106,875 PT Telekomunikasi Indonesia, ADR....................... 150,000 1,680,000 SBC Communications, Inc................ 75,000 1,916,250 Verizon Communications, Inc............ 35,000 1,380,750 ------------- 6,083,875 ------------- WIRELESS TELECOMMUNICATION SERVICES (2.0%) AT&T Wireless Services, Inc. (a)....... 100,000 821,000 Millicom International Cellular SA (a)............................... 45,000 1,179,450 Vimpel-Communications, ADR (a)......... 70,000 3,250,800 ------------- 5,251,250 ------------- UTILITIES (1.9%) ELECTRIC UTILITIES (0.7%) TECO Energy, Inc....................... 100,000 1,199,000 Xcel Energy, Inc....................... 50,000 752,000 ------------- 1,951,000 ------------- MULTI-UTILITIES & UNREGULATED POWER (0.9%) Aquila, Inc............................ 100,000 258,000 Duke Energy Corp....................... 42,500 847,875 El Paso Corp........................... 50,000 404,000 Mirant Corp. (a)....................... 50,000 145,000 Westar Energy, Inc..................... 40,000 649,200 ------------- 2,304,075 ------------- WATER UTILITIES (0.3%) California Water Service Group......... 30,000 843,600 ------------- Total Common Stocks (Cost of $192,724,545)............... 220,670,026 ------------- INVESTMENT MANAGEMENT COMPANY (0.5%) Japan Smaller Capitalization Fund, Inc. (Cost of $984,539)................... 150,000 1,240,500 ------------- SHORT-TERM OBLIGATION (16.4%) PAR Repurchase agreement with State Street Bank & Trust Co., dated 06/30/03, due 07/01/03 at 0.950%, collateralized by a U.S. Treasury Note maturing 12/31/04, market value of $44,450,900 (repurchase proceeds $43,580,150) (Cost of $43,579,000)................ $43,579,000 43,579,000 ------------- VALUE ----- TOTAL INVESTMENTS (100.1%) (Cost of $237,288,084) (c)........... $ 265,489,526 ------------- OTHER ASSETS & LIABILITIES, NET (-0.1%).... (288,328) ------------- NET ASSETS (100.0%)........................ $ 265,201,198 ============= 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 June 30, 2003, the value of this security amounted to $1,859,375, which represents 0.7% of net assets. (c) Cost for both financial statement and federal income tax purposes is the same. ACRONYM NAME ------- ---- ADR American Depositary Receipt GDR Global Depositary Receipt COLUMBIA BALANCED FUND JUNE 30, 2003 (UNAUDITED) SHARES VALUE ----------- ------------- COMMON STOCKS (61.5%) CONSUMER DISCRETIONARY (10.1%) HOTELS, RESTAURANTS & LEISURE (3.2%) Carnival Corp.......................... 68,300 $ 2,220,433 Hilton Hotels Corp..................... 156,675 2,003,873 McDonald's Corp........................ 335,200 7,394,512 Royal Caribbean Cruises Ltd............ 204,200 4,729,272 Yum! Brands, Inc. (a).................. 141,900 4,194,564 ------------- 20,542,654 ------------- INTERNET & CATALOG RETAIL (0.2%) eBay, Inc. (a)......................... 10,500 1,093,890 ------------- MEDIA (2.4%) AOL Time Warner, Inc. (a).............. 296,212 4,766,051 Clear Channel Communications, Inc. (a)............................. 46,825 1,984,912 Comcast Corp., Class A (a)............. 69,556 2,099,200 Interpublic Group of Companies, Inc. ................................ 88,600 1,185,468 Liberty Media Corp., Class A (a)....... 343,579 3,971,773 Viacom, Inc., Class B (a).............. 43,400 1,894,844 ------------- 15,902,248 ------------- MULTI-LINE RETAIL (3.1%) Dollar General Corp.................... 169,250 3,090,505 Kohl's Corp. (a)....................... 125,520 6,449,218 Target Corp. .......................... 171,500 6,489,560 Wal-Mart Stores, Inc................... 70,080 3,761,194 ------------- 19,790,477 ------------- See Accompanying Notes to Financial Statements 97 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA BALANCED FUND (CONT.) JUNE 30, 2003 (UNAUDITED) SHARES VALUE ----------- ------------- SPECIALTY RETAIL (1.2%) Home Depot, Inc........................ 189,000 $ 6,259,680 Lowe's Companies, Inc.................. 43,150 1,853,293 ------------- 8,112,973 ------------- CONSUMER STAPLES (2.8%) BEVERAGES (0.6%) PepsiCo, Inc........................... 88,975 3,959,388 ------------- FOOD PRODUCTS (0.2%) Hershey Foods Corp. ................... 13,900 968,274 ------------- HOUSEHOLD PRODUCTS (0.2%) Procter & Gamble Co.................... 13,625 1,215,077 ------------- PERSONAL PRODUCTS (0.7%) Alberto-Culver Co., Class B............ 63,125 3,225,688 Gillette Co............................ 44,725 1,424,938 ------------- 4,650,626 ------------- TOBACCO (1.1%) Altria Group, Inc...................... 159,675 7,255,632 ------------- ENERGY (4.3%) ENERGY EQUIPMENT & SERVICES (1.5%) BJ Services Co. (a).................... 50,000 1,868,000 ENSCO International, Inc............... 76,850 2,067,265 Nabors Industries Ltd. (a)............. 43,600 1,724,380 Noble Corp. (a)........................ 50,825 1,743,298 Schlumberger Ltd....................... 55,500 2,640,135 ------------- 10,043,078 ------------- OIL & GAS (2.8%) Apache Corp............................ 71,404 4,645,544 ConocoPhillips......................... 41,450 2,271,460 Devon Energy Corp...................... 38,150 2,037,210 EOG Resources, Inc..................... 35,175 1,471,722 Equitable Resources, Inc............... 38,900 1,584,786 Exxon Mobil Corp. ..................... 131,884 4,735,954 Pioneer Natural Resources Co........... 39,300 1,025,730 ------------- 17,772,406 ------------- FINANCIALS (13.0%) BANKS (2.9%) Bank of America Corp................... 110,610 8,741,508 Bank One Corp.......................... 95,575 3,553,478 Fifth Third Bancorp.................... 34,875 1,999,733 U.S. Bancorp........................... 169,300 4,147,850 ------------- 18,442,569 ------------- SHARES VALUE ----------- ------------- DIVERSIFIED FINANCIALS (6.8%) American Express Co.................... 198,425 $ 8,296,149 Citigroup, Inc......................... 399,093 17,081,180 Fannie Mae............................. 37,425 2,523,942 Goldman Sachs Group, Inc............... 33,300 2,788,875 J.P. Morgan Chase & Co................. 206,815 7,068,937 Merrill Lynch & Co., Inc............... 65,200 3,043,536 Morgan Stanley......................... 29,375 1,255,781 Principal Financial Group, Inc......... 61,500 1,983,375 ------------- 44,041,775 ------------- INSURANCE (3.3%) American International Group, Inc...... 99,862 5,510,385 Aon Corp............................... 66,000 1,589,280 Chubb Corp............................. 82,700 4,962,000 Hartford Financial Services Group, Inc........................... 81,800 4,119,448 Marsh & McLennan Companies, Inc. ................................ 65,000 3,319,550 Prudential Financial, Inc.............. 60,900 2,049,285 ------------- 21,549,948 ------------- HEALTH CARE (10.6%) BIOTECHNOLOGY (0.9%) Amgen, Inc. (a)........................ 62,733 4,167,981 Biogen, Inc. (a)....................... 35,200 1,337,600 IDEC Pharmaceuticals Corp. (a)......... 17,800 605,200 ------------- 6,110,781 ------------- HEALTH CARE EQUIPMENT & SUPPLIES (0.9%) Applera Corp........................... 81,300 1,547,139 Becton, Dickinson & Co................. 102,500 3,982,125 ------------- 5,529,264 ------------- HEALTH CARE PROVIDERS & SERVICES (2.0%) Aetna, Inc............................. 33,500 2,016,700 Caremark Rx, Inc. (a).................. 98,200 2,521,776 McKesson Corp.......................... 84,450 3,053,983 UnitedHealth Group, Inc................ 70,800 3,557,700 WellPoint Health Networks, Inc......... 24,375 2,054,812 ------------- 13,204,971 ------------- PHARMACEUTICALS (6.8%) Abbott Laboratories.................... 88,910 3,890,702 Bristol-Myers Squibb Co................ 168,544 4,575,970 Johnson & Johnson...................... 136,125 7,037,663 Merck & Co., Inc....................... 100,950 6,112,522 Pfizer, Inc............................ 490,790 16,760,479 Shire Pharmaceuticals Group PLC, ADR (a)......................... 75,200 1,481,440 Wyeth.................................. 87,600 3,990,180 ------------- 43,848,956 ------------- See Accompanying Notes to Financial Statements 98 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- SHARES VALUE ----------- ------------- INDUSTRIALS (6.1%) AEROSPACE & DEFENSE (1.9%) L-3 Communications Holdings, Inc. (a)............................. 97,500 $ 4,240,275 Lockheed Martin Corp................... 84,400 4,014,908 Northrop Grumman Corp. ................ 46,800 4,038,372 ------------- 12,293,555 ------------- AIR FREIGHT & LOGISTICS (0.3%) FedEx Corp. ........................... 31,825 1,974,105 ------------- COMMERCIAL SERVICES & SUPPLIES (1.1%) First Data Corp........................ 45,825 1,898,988 Waste Management, Inc. ................ 214,125 5,158,271 ------------- 7,057,259 ------------- INDUSTRIAL CONGLOMERATES (2.2%) 3M Co.................................. 29,800 3,843,604 General Electric Co.................... 364,675 10,458,879 ------------- 14,302,483 ------------- MACHINERY (0.6%) Deere & Co. ........................... 87,600 4,003,320 ------------- INFORMATION TECHNOLOGY (10.4%) COMMUNICATIONS EQUIPMENT (1.5%) Cisco Systems, Inc. (a)................ 216,385 3,611,466 Emulex Corp. (a)....................... 114,380 2,604,433 QUALCOMM, Inc.......................... 97,700 3,492,775 ------------- 9,708,674 ------------- COMPUTERS & PERIPHERALS (0.4%) EMC Corp. (a).......................... 121,700 1,274,199 Hewlett-Packard Co..................... 66,600 1,418,580 ------------- 2,692,779 ------------- INTERNET SOFTWARE & SERVICES (0.6%) Yahoo!, Inc. (a)....................... 108,000 3,538,080 ------------- SEMICONDUCTOR EQUIPMENT & PRODUCTS (3.9%) Broadcom Corp., Class A (a)............ 74,400 1,853,304 Intel Corp............................. 128,675 2,674,381 Intersil Corp., Class A (a)............ 107,400 2,857,914 Linear Technology Corp................. 83,400 2,686,314 Marvell Technology Group Ltd. (a)...... 90,700 3,117,359 Maxim Integrated Products, Inc......... 14,650 500,883 National Semiconductor Corp. (a)....... 83,500 1,646,620 NVIDIA Corp. (a)....................... 68,600 1,578,486 Silicon Laboratories, Inc. (a)......... 87,300 2,325,672 Taiwan Semiconductor Manufacturing Co., Ltd., ADR (a)..... 266,990 2,691,259 Texas Instruments, Inc................. 55,900 983,840 Vitesse Semiconductor Corp. (a)........ 180,900 890,028 Xilinx, Inc. (a)....................... 57,100 1,445,201 ------------- 25,251,261 ------------- SHARES VALUE ----------- ------------- SOFTWARE (4.0%) BEA Systems, Inc. (a).................. 124,600 $ 1,353,156 Computer Associates International, Inc................... 75,500 1,682,140 Mercury Interactive Corp. (a).......... 54,400 2,100,384 Microsoft Corp......................... 558,475 14,302,545 Oracle Corp. (a)....................... 152,900 1,837,858 Symantec Corp. (a)..................... 46,175 2,025,235 VERITAS Software Corp. (a)............. 89,700 2,571,699 ------------- 25,873,017 ------------- MATERIALS (0.3%) CHEMICALS (0.3%) Praxair, Inc........................... 33,850 2,034,385 ------------- TELECOMMUNICATION SERVICES (2.4%) DIVERSIFIED TELECOMMUNICATION SERVICES (2.1%) BellSouth Corp......................... 164,100 4,369,983 SBC Communications, Inc................ 163,525 4,178,064 Verizon Communications, Inc............ 132,700 5,235,015 ------------- 13,783,062 ------------- WIRELESS TELECOMMUNICATION SERVICES (0.3%) Vodafone Group PLC, ADR................ 109,950 2,160,517 ------------- UTILITIES (1.5%) MULTI-UTILITIES & UNREGULATED POWER (1.5%) Ameren Corp............................ 34,500 1,521,450 Consolidated Edison, Inc............... 63,700 2,756,936 DTE Energy Co.......................... 107,300 4,146,072 Pinnacle West Capital Corp............. 25,800 966,210 ------------- 9,390,668 ------------- Total Common Stocks (Cost of $341,759,709)............... 398,098,152 ------------- PREFERRED STOCK (0.3%) CONSUMER DISCRETIONARY (0.3%) MEDIA (0.3%) News Corp., Ltd., ADR (Cost of $1,811,447)................. 85,825 2,149,916 ------------- U.S. GOVERNMENT & AGENCY SECURITIES (14.6%) PAR U.S. TREASURY NOTES & BONDS (6.0%) U.S. Treasury Bonds: 6.250% 08/15/23...................... $ 6,675,000 8,178,444 8.875% 08/15/17...................... 2,970,000 4,493,981 U.S. Treasury Inflation Index Note, 3.625% 01/15/08...................... 10,996,644 12,340,302 See Accompanying Notes to Financial Statements 99 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA BALANCED FUND (CONT.) JUNE 30, 2003 (UNAUDITED) PAR VALUE ----------- ------------- U.S. Treasury Notes: 3.500% 11/15/06...................... $ 9,725,000 $ 10,254,186 4.875% 02/15/12...................... 3,250,000 3,613,597 ------------- 38,880,510 ------------- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) (0.4%) 7.000% 10/15/31 - 05/15/32............. 2,595,610 2,742,423 ------------- FEDERAL HOME LOAN MORTGAGE CORP. (FHLMC) (2.6%) 5.000% TBA (b)......................... 6,350,000 6,558,357 6.000% 03/01/17 - 08/01/17............. 5,571,127 5,795,427 6.500% 05/01/32 - 08/01/32............. 3,917,682 4,078,064 ------------- 16,431,848 ------------- FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) (2.4%) 5.000% TBA (b)......................... 13,760,000 14,215,800 5.928% 07/01/32........................ 1,459,362 1,512,719 ------------- 15,728,519 ------------- FEDERAL HOUSING ADMINISTRATION (FHA) (0.2%) FHA Insured Project, Pool #53-43077, 9.125% 03/25/33...................... 1,555,180 1,552,636 ------------- AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS (3.0%) FHLMC Multiclass Mtg. Partn. Ctfs., Gtd.: Series 2235, Class VN, 7.000% 06/15/14...................... 3,980,000 4,085,316 Series 2462, Class JE, 6.500% 11/15/30...................... 1,810,000 1,884,316 FNMA Gtd. Remic Pass Thru Ctfs.: Remic Tr. 2001-55, Class PC, 6.500% 10/25/31...................... 5,090,000 5,294,918 Remic Tr. 2001-56, Class KD, 6.500% 07/25/30...................... 2,260,000 2,321,088 Remic Tr. 2002-8, Class PD, 6.500% 07/25/30...................... 3,570,000 3,696,880 Remic Tr. 2002-27, Class OG, 6.500% 12/25/30...................... 1,820,000 1,881,737 ------------- 19,164,255 ------------- Total U.S. Government & Agency Securities (Cost of $91,716,704)................ 94,500,191 ------------- CORPORATE NOTES & BONDS (13.6%) INDUSTRIALS (6.8%) Abitibi-Consolidated, Inc., 6.000% 06/20/13...................... 100,000 95,176 PAR VALUE ----------- ------------- Advance PCS, 8.500% 04/01/08...................... $ 250,000 $ 268,750 Airgas, Inc., 9.125% 10/01/11...................... 50,000 55,625 Alcan, Inc., 7.250% 03/15/31...................... 675,000 842,476 Allied Waste North America, Inc., 10.000% 08/01/09..................... 250,000 265,625 American Axle & Manufacturing, Inc., 9.750% 03/01/09...................... 250,000 268,750 American Home Products Corp., 6.250% 03/15/06...................... 1,370,000 1,520,056 AmerisourceBergen Corp., 8.125% 09/01/08...................... 125,000 137,500 Anadarko Finance Co., 7.500% 05/01/31...................... 1,250,000 1,575,438 Anthem, Inc., 6.800% 08/01/12...................... 925,000 1,081,776 Apogent Technologies, Inc., 6.500% 05/15/13 (c).................. 25,000 25,813 Arch Western Finance, 6.750% 07/01/13 (c).................. 155,000 159,650 AT&T Corp., 8.500% 11/15/31...................... 650,000 739,591 Ball Corp., 7.750% 08/01/06...................... 250,000 273,750 Boeing Co., 6.125% 02/15/33...................... 850,000 890,659 British Sky Broadcasting Group, 7.300% 10/15/06...................... 100,000 112,000 Canadian National Railway Co.: 6.450% 07/15/06...................... 300,000 335,899 7.195% 01/02/16...................... 891,544 1,074,092 Canandaigua Brands, Inc., 8.500% 03/01/09...................... 250,000 262,500 Cascades, Inc., 7.250% 02/15/13 (c).................. 115,000 121,037 Chesapeake Energy Corp.: 7.500% 09/15/13 (c).................. 145,000 154,063 8.375% 11/01/08...................... 50,000 54,125 9.000% 08/15/12...................... 20,000 22,300 Cinemark USA, Inc., 9.000% 02/01/13 (c).................. 145,000 157,325 Coca-Cola Enterprises, Inc., 6.750% 01/15/38...................... 1,045,000 1,234,059 Comcast Corp., 7.050% 03/15/33...................... 375,000 418,143 Coors Brewing Co., 6.375% 05/15/12...................... 900,000 1,034,626 Cott Beverages, Inc., 8.000% 12/15/11...................... 250,000 270,000 See Accompanying Notes to Financial Statements 100 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- PAR VALUE ----------- ------------- Cox Enterprises, Inc., 8.000% 02/15/07 (c).................. $ 1,050,000 $ 1,230,611 CSC Holdings, Inc.: 8.125% 08/15/09...................... 25,000 25,875 9.875% 02/15/13...................... 130,000 135,850 DaimlerChrysler NA Holding Corp., 8.500% 01/18/31...................... 475,000 561,128 Dex Media East LLC, 12.125% 11/15/12..................... 75,000 88,687 Diageo Capital PLC, 3.375% 03/20/08...................... 1,100,000 1,125,488 DirecTV Holdings, 8.375% 03/15/13 (c).................. 95,000 105,925 EquiStar Chemical: 10.125% 09/01/08..................... 25,000 25,750 10.625% 05/01/11 (c)................. 25,000 25,625 Ethyl Corp., 8.875% 05/01/10 (c).................. 50,000 51,000 Extended Stay America, Inc., 9.875% 06/15/11...................... 150,000 161,250 General Electric Co., 5.000% 02/01/13...................... 2,500,000 2,645,682 Grant Prideco, Inc.: 9.000% 12/15/09...................... 220,000 244,200 9.625% 12/01/07...................... 15,000 16,575 Harrah's Operating Co., Inc., 7.875% 12/15/05...................... 125,000 135,938 Hasbro, Inc., 8.500% 03/15/06...................... 100,000 109,500 HCA, Inc., 6.910% 06/15/05...................... 200,000 212,178 Houghton Mifflin Co., 9.875% 02/01/13 (c).................. 205,000 222,425 International Business Machines Corp., 5.875% 11/29/32...................... 1,700,000 1,830,079 Iron Mountain, Inc., 7.750% 01/15/15...................... 250,000 264,375 John Deere Capital Corp., 3.900% 01/15/08...................... 550,000 571,986 K & F Industries, Inc., 9.625% 12/15/10...................... 145,000 160,950 KB Home, 8.625% 12/15/08...................... 250,000 283,750 Key Energy Services, Inc., 6.375% 05/01/13...................... 80,000 81,200 L-3 Communications Corp., 7.625% 06/15/12...................... 175,000 192,500 Lamar Media Corp., 8.625% 09/15/07...................... 125,000 129,688 Lear Corp., 7.960% 05/15/05...................... 250,000 266,250 PAR VALUE ----------- ------------- LIN Television Corp., 6.500% 05/15/13 (c).................. $ 125,000 $ 124,688 Lowe's Companies, Inc., 6.500% 03/15/29...................... 700,000 796,471 Mediacom LLC, 9.500% 01/15/13...................... 200,000 211,500 Newell Rubbermaid, Inc., 4.000% 05/01/10...................... 950,000 969,456 Nextel Communications, Inc.: 9.750% 10/31/07...................... 150,000 155,250 10.650% 09/15/07..................... 100,000 103,250 Occidental Petroleum Corp., 4.250% 03/15/10...................... 775,000 809,728 Offshore Logistics, Inc., 6.125% 06/15/13 (c).................. 205,000 205,513 Omnicare, Inc., 8.125% 03/15/11...................... 250,000 271,250 Owens-Illinois, Inc., 7.350% 05/15/08...................... 150,000 150,000 Park Place Entertainment Corp., 9.375% 02/15/07...................... 250,000 276,875 Peabody Energy Corp., 6.875% 03/15/13 (c).................. 150,000 157,125 PepsiAmericas, Inc., 3.875% 09/12/07...................... 1,450,000 1,499,803 Premier Parks, Inc., 9.750% 06/15/07...................... 75,000 74,250 Province Healthcare Co., 7.500% 06/01/13...................... 50,000 49,250 R.H. Donnelley Financial Corp.: 8.875% 12/15/10 (c).................. 30,000 33,150 10.875% 12/15/12 (c)................. 215,000 250,475 Rogers Cable, Inc.: 6.250% 06/15/13 (c).................. 50,000 49,875 7.875% 05/01/12...................... 185,000 201,650 Scotts Co., 8.625% 01/15/09...................... 240,000 256,800 Select Medical Corp., 9.500% 06/15/09...................... 275,000 298,719 Silgan Holdings, Inc., 9.000% 06/01/09...................... 250,000 258,750 Sinclair Broadcasting Group, Inc.: 8.000% 03/15/12...................... 30,000 32,025 8.000% 03/15/12 (c).................. 190,000 202,825 Smurfit-Stone Container Corp.: 8.250% 10/01/12...................... 55,000 58,988 9.750% 01/01/11...................... 35,000 38,325 Speedway Motorsports, Inc., 6.750% 06/01/13 (c).................. 100,000 103,500 Starwood Hotels & Resorts Worldwide, Inc., 7.375% 05/01/07...................... 100,000 105,250 See Accompanying Notes to Financial Statements 101 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA BALANCED FUND (CONT.) JUNE 30, 2003 (UNAUDITED) PAR VALUE ----------- ------------- Station Casinos, Inc.: 8.875% 12/01/08...................... $ 50,000 $ 52,500 9.875% 07/01/10...................... 240,000 264,000 Synagro Technologies, Inc., 9.500% 04/01/09...................... 50,000 53,500 TCI Communications, Inc., 7.250% 08/01/05...................... 685,000 746,166 Teekay Shipping Corp., 8.875% 07/15/11...................... 300,000 328,875 Time Warner, Inc., 7.975% 08/15/04...................... 1,153,000 1,223,414 Toll Corp., 7.750% 09/15/07...................... 250,000 259,688 Triad Hospitals, Inc., 8.750% 05/01/09...................... 275,000 292,531 Union Pacific Corp., 3.875% 02/15/09...................... 1,000,000 1,023,326 United Rentals, Inc., 10.750% 04/15/08..................... 250,000 273,125 United Technologies Corp., 6.500% 06/01/09...................... 1,685,000 1,990,426 Universal Compression, Inc., 7.250% 05/15/10 (c).................. 50,000 51,750 Verizon Global Funding Corp., 7.250% 12/01/10...................... 1,800,000 2,165,513 Viacom, Inc., 5.500% 05/15/33...................... 425,000 424,040 Vintage Petroleum, Inc., 9.750% 06/30/09...................... 160,000 172,000 Wal-Mart Stores, Inc., 4.375% 07/12/07...................... 1,570,000 1,683,991 Westport Resources Corp., 8.250% 11/01/11...................... 265,000 290,175 XTO Energy, Inc., 7.500% 04/15/12...................... 300,000 340,500 Yum! Brands, Inc., 8.500% 04/15/06...................... 250,000 280,000 ------------- 44,015,530 ------------- FINANCIALS (4.6%) American General Finance Corp., 5.375% 09/01/09...................... 475,000 519,695 Bank of America Corp., 7.800% 02/15/10...................... 2,225,000 2,746,923 Bank One Corp., 2.625% 06/30/08...................... 1,300,000 1,279,548 CIT Group, Inc., 7.250% 08/15/05...................... 890,000 972,280 PAR VALUE ----------- ------------- Citigroup, Inc., 7.250% 10/01/10...................... $ 1,565,000 $ 1,898,935 Ford Motor Credit Co., 7.375% 10/28/09...................... 2,490,000 2,614,246 General Motors Acceptance Corp., 4.500% 07/15/06...................... 1,875,000 1,885,256 Goldman Sachs Group, Inc., 6.125% 02/15/33...................... 675,000 726,414 Health Care Property Investors, Inc., 6.450% 06/25/12...................... 1,200,000 1,307,930 Health Care REIT, Inc., 7.500% 08/15/07...................... 150,000 160,272 Household Finance Corp., 6.400% 06/17/08...................... 1,250,000 1,428,434 iStar Financial, Inc., 8.750% 08/15/08...................... 50,000 54,500 Lehman Brothers Holdings, Inc., 4.000% 01/22/08...................... 1,325,000 1,382,354 Merrill Lynch & Co., Inc., 2.470% 03/10/06...................... 1,250,000 1,262,441 Morgan Stanley: 4.250% 05/15/10...................... 375,000 386,557 6.100% 04/15/06...................... 700,000 771,123 SLM Corp., 5.125% 08/27/12...................... 1,900,000 2,022,615 US Bank NA, 6.375% 08/01/11...................... 2,050,000 2,396,956 Wachovia Corp., 4.950% 11/01/06...................... 2,100,000 2,288,282 Washington Mutual, Inc., 5.625% 01/15/07...................... 1,275,000 1,406,428 Wells Fargo & Co., 7.250% 08/24/05...................... 2,000,000 2,235,484 ------------- 29,746,673 ------------- UTILITIES (1.1%) Dominion Resources, Inc., 2.800% 02/15/05...................... 1,250,000 1,267,092 FPL Group Capital, Inc., 6.125% 05/15/07...................... 1,600,000 1,766,112 Kinder Morgan Energy Partners LP, 8.000% 03/15/05...................... 1,475,000 1,626,059 Pogo Producing Co., 8.250% 04/15/11...................... 30,000 33,225 Progress Energy, Inc., 7.75% 03/01/31....................... 500,000 602,835 SEMCO Energy, Inc., 7.125% 05/15/08 (c).................. 5,000 5,225 Southern Power Co., 6.250% 07/15/12...................... 1,300,000 1,474,028 ------------- 6,774,576 ------------- See Accompanying Notes to Financial Statements 102 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- PAR VALUE ----------- ------------- INTERNATIONAL (1.1%) Ontario Province, 3.500% 09/17/07...................... $ 2,200,000 $ 2,291,274 Quebec Province, 6.50% 01/17/06....................... 2,100,000 2,340,748 Republic of Italy, 2.500% 03/31/06...................... 1,300,000 1,326,322 United Mexican States, 8.000% 09/24/22...................... 1,150,000 1,290,875 ------------- 7,249,219 ------------- Total Corporate Notes & Bonds (Cost of $80,187,186)................ 87,785,998 ------------- OTHER SECURITIZED LOANS (6.3%) ASSET-BACKED SECURITIES (3.6%) Cityscape Home Equity Loan Trust: Series 1997-B, Class A7, 7.410% 05/25/28...................... 1,665,402 1,710,238 Series 1997-4, Class A4, 7.440% 10/25/18...................... 1,574,469 1,637,862 First Alliance Mortgage Trust, Series 1996-1, Class A1, 7.340% 06/20/27...................... 323,909 323,961 IMC Home Equity Loan Trust: Series 1997-3, Class A6, 7.520% 08/20/28...................... 1,157,766 1,201,510 Series 1997-5, Class A9, 7.310% 11/20/28...................... 2,180,000 2,296,421 Merit Securities Corp., Series 13, Class A4, 7.880% 12/28/33...................... 3,980,000 3,970,314 Salomon Brothers Mortgage Securities VII, Series 1998-AQ1, Class A5, 7.150% 06/25/28...................... 3,150,000 3,374,910 SLM Student Loan Trust: Series 1997-3, Class A2, 1.470% 10/25/10 (d).................. 3,763,286 3,787,644 Series 1997-4, Class A2, 1.657% 10/25/10 (d).................. 4,813,052 4,860,836 ------------- 23,163,696 ------------- COLLATERALIZED MORTGAGE OBLIGATIONS (1.7%) Bear Stearns Mortgage Securities, Inc., Series 1996-2, Class A1, 4.187% 01/28/25 (d).................. 1,114,352 1,114,328 CMC Securities Corp. IV, Series 1997-2, Class IA12, 7.250% 11/25/27...................... 137,903 137,877 PAR VALUE ----------- ------------- Countrywide Home Loans, Inc., Series 2002-16, Class 1A1, 6.500% 09/25/32...................... $ 345,636 $ 352,405 First Nationwide Trust, Series 2000-1, Class IIA3, 8.000% 10/25/30...................... 3,750,356 3,807,831 Residential Asset Securitization Trust, Series 2002-A7, Class A2, 5.180% 01/25/27...................... 4,544,165 4,592,277 SACO I, Inc., Series 1995-1, Class A, 12.061% 09/25/24 (c)(d).............. 247,471 244,873 Structured Asset Securities Corp.: Series 1999-ALS2, Class A2, 6.750% 07/25/29...................... 193,714 193,446 Series 2001-12, Class 1A4, 5.800% 09/25/31...................... 399,194 402,872 ------------- 10,845,909 ------------- COMMERCIAL MORTGAGE-BACKED SECURITIES (1.0%) GMAC Commercial Mortgage Asset Corp., Series 2001-FLAA, Class B1, 1.680% 06/15/13 (c)(d)............... 1,441,796 1,440,478 Nationslink Funding Corp., Series 1999-SL, Class A5, 6.888% 05/10/07...................... 4,380,000 4,987,894 ------------- 6,428,372 ------------- Total Other Securitized Loans (Cost of $39,219,652)................ 40,437,977 ------------- SHORT-TERM OBLIGATIONS (7.0%) U.S. TREASURY BILL (0.7%) 1.165% 08/14/03........................ 4,600,000 4,593,900 ------------- REPURCHASE AGREEMENT (6.3%) Repurchase agreement with State Street Bank & Trust Co., dated 06/30/03, due 07/01/03 at 0.950%, collateralized by a U.S. Treasury Note maturing 08/15/03, market value of $41,875,763 (repurchase proceeds $41,054,083)................ 41,053,000 41,053,000 ------------- TOTAL SHORT-TERM OBLIGATIONS (Cost of $45,646,900)................ 45,646,900 ------------- TOTAL INVESTMENTS (103.3%) (Cost of $600,341,598) (e)........... 668,619,134 ------------- OTHER ASSETS & LIABILITIES, NET (-3.3)%.... (21,342,262) ------------- NET ASSETS (100.0%)........................ $ 647,276,872 ------------- See Accompanying Notes to Financial Statements 103 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA BALANCED FUND (CONT.) JUNE 30, 2003 (UNAUDITED) 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 June 30, 2003, the value of these securities amounted to $5,122,951, which represents 0.8% of net assets. (d) Variable rate security. The rate reported is the rate in effect at June 30, 2003. (e) Cost for federal income tax purposes is $600,631,649. ACRONYM NAME ------- ---- ADR American Depositary Receipt COLUMBIA SHORT TERM BOND FUND JUNE 30, 2003 (UNAUDITED) PAR VALUE ----------- ------------- U.S. GOVERNMENT & AGENCY SECURITIES (28.6%) U.S. TREASURY NOTES & BONDS (5.0%) U.S. Treasury Notes, 3.500% 11/15/06........................ $ 5,000,000 $ 5,272,075 U.S. Treasury Inflation Index Notes, 3.625% 01/15/08...................... 20,252,484 22,727,095 ------------- 27,999,170 ------------- U.S. AGENCY BONDS (1.2%) Federal Home Loan Bank, 6.375% 11/14/03........................ 5,250,000 5,354,606 Federal Home Loan Mortgage Corp., 4.625% 03/22/06........................ 1,000,000 1,008,022 Federal National Mortgage Association, 3.125% 11/15/03........................ 75,000 75,603 Morocco Government AID Bond, 1.423% 05/01/23 (a).................. 500,000 495,000 ------------- 6,933,231 ------------- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) (0.7%) 6.500% 09/13/13 - 07/15/32............. 2,858,652 3,007,935 7.000% 11/15/13 - 08/15/29........... 757,348 805,044 ------------- 3,812,979 ------------- FEDERAL HOME LOAN MORTGAGE CORP. (FHLMC) (7.2%) 4.500% TBA (b)......................... 15,100,000 15,416,164 5.000% TBA (b)......................... 7,130,000 7,363,950 5.500% 05/01/17 - 12/01/17............. 12,810,233 13,290,595 6.000% 10/01/06 - 08/01/17............. 2,772,566 2,877,419 PAR VALUE ----------- ------------- 7.000% 05/01/19........................ $ 1,715 $ 1,798 7.500% 09/01/15........................ 389,345 415,255 8.500% 07/01/30...................... 377,405 404,525 ------------- 39,769,706 ------------- FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) (9.9%) 5.000% TBA (b)......................... 39,450,000 40,756,781 5.500% TBA (b)......................... 6,000,000 6,232,500 6.000% 03/01/09 - 05/01/17............. 5,772,294 5,992,880 6.500% 03/01/02 - 07/01/32............. 327,500 343,977 7.500% 08/01/15........................ 362,751 388,234 8.000% 05/01/05 - 07/01/31............. 1,301,551 1,397,847 ------------- 55,112,219 ------------- AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS (4.6%) FHLMC: Series 1558, Class C, 6.500% 07/15/23....................... 448,196 458,911 Series 1839, Class C, 6.500% 04/15/25....................... 215,566 216,760 Series 2500, Class PE, 6.000% 06/15/31....................... 1,430,000 1,494,850 Series 2512, Class DB, 5.000% 10/15/17....................... 2,953,815 2,954,664 Multi-class Mtg. Partn. Ctfs., Gtd.: Series 1138,Class G, 8.500% 09/15/06....................... 114,939 116,763 Series 1283,Class K, 7.000% 06/15/22....................... 600,988 621,263 Series 2387,Class D, 5.500% 12/15/26....................... 1,428,982 1,440,162 Structured Pass Thru Securities, Series T-41, Class 1A1, 3.340% 08/25/16....................... 1,225,491 1,224,688 FNMA: Series 2001-34, Class AE, 6.000% 07/25/29....................... 1,250,000 1,273,722 Series 2001-55, Class PC, 6.500% 10/25/31....................... 1,900,000 1,976,492 Series 2002-42, Class A, 6.000% 01/25/16....................... 1,821,853 1,872,236 Series 2002-W6, Class 1A1, 3.090% 12/25/28....................... 2,059,891 2,058,419 Series 2003-29, Class WY, 4.000% 04/25/33....................... 3,676,368 3,694,331 Gtd. Remic Pass Thru Certificates: Remic Tr. 1991-146, Class Z, 8.000% 10/25/06....................... 46,251 48,966 Remic Tr. 1993-92, Class C, (c) 05/25/23.......................... 1,295,000 993,831 Remic Tr. 1998-36, Class GA, 6.000% 12/18/27....................... 2,925,124 2,962,290 See Accompanying Notes to Financial Statements 104 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- PAR VALUE ----------- ------------- GNMA Gtd. Remic Pass Thru Certificates, Remic Tr. 1997-7, Class PC, 5.000% 05/16/27...................... $ 2,001,364 $ 2,029,562 ------------- 25,437,910 ------------- Total U.S. Government & Agency Securities (Cost of $158,955,689)............... 159,065,215 ------------- CORPORATE NOTES & BONDS (34.6%) INDUSTRIALS (14.7%) Anadarko Petroleum Corp., 3.250% 05/01/08........................ 4,950,000 4,960,405 Anthem, Inc., 4.875% 08/01/05........................ 2,225,000 2,350,425 AOL Time Warner, Inc.: 6.125% 04/15/06........................ 1,750,000 1,915,011 7.975% 08/15/04........................ 375,000 397,901 AT&T Corp., 7.000% 11/15/06........................ 1,300,000 1,447,182 Boeing, Inc., 8.100% 11/15/06........................ 1,820,000 2,124,708 Canadian National Railway Co., 6.450% 07/15/06........................ 460,000 515,045 Caterpillar Financial Services Corp., 6.875% 08/01/04........................ 2,500,000 2,647,878 ChevronTexaco Capital Co., 3.500% 09/17/07........................ 3,350,000 3,484,787 Coca-Cola Enterprises, Inc., 8.000% 01/04/05........................ 650,000 711,145 Colgate-Palmolive Co., 1.415% 08/16/04 (a).................... 3,000,000 3,006,012 Conoco, Inc., 5.900% 04/15/04...................... 150,000 155,188 ConocoPhillips, 8.500% 05/25/05........................ 3,165,000 3,566,794 Costco Wholesale Corp., 5.500% 03/15/07........................ 640,000 707,172 Cox Enterprises, Inc., 8.000% 02/15/07 (d).................... 1,300,000 1,523,613 DaimlerChrysler NA Holding Corp., 4.750% 01/15/08........................ 1,575,000 1,617,267 Diageo Capital PLC, 3.375% 03/20/08........................ 4,500,000 4,604,269 Gannett Co., Inc., 4.950% 04/01/05........................ 2,000,000 2,114,916 Honeywell International, Inc., 5.125% 11/01/06........................ 2,445,000 2,670,967 International Business Machines Corp.: 4.250% 09/15/09........................ 600,000 635,219 4.875% 10/01/06........................ 2,500,000 2,718,935 John Deere Capital Corp., 3.900% 01/15/08........................ 3,350,000 3,483,913 PAR VALUE ----------- ------------- Jones Intercable, Inc., 7.625% 04/15/08........................ $ 1,875,000 $ 2,181,823 Kellogg Co., 6.000% 04/01/06........................ 1,250,000 1,378,904 Lowe's Companies, Inc., 7.500% 12/15/05........................ 1,675,000 1,904,390 Nestle Holdings (UK) PLC, 5.000% 12/08/03........................ 1,000,000 1,017,167 Newell Rubbermaid, Inc., 2.000% 05/01/05........................ 3,725,000 3,736,603 Occidental Petroleum Corp., 4.250% 03/15/10........................ 2,185,000 2,282,910 Pepsi Bottling Holdings, Inc., 5.375% 02/17/04 (d).................... 1,750,000 1,794,784 Procter & Gamble Co., 4.750% 06/15/07........................ 725,000 785,709 Target Corp., 5.950% 05/15/06........................ 1,000,000 1,111,343 TCI Communications, Inc., 7.250% 08/01/05........................ 1,125,000 1,225,456 Union Pacific Corp., 3.875% 02/15/09........................ 1,825,000 1,867,570 United Technologies Corp., 4.875% 11/01/06........................ 2,475,000 2,667,112 Verizon Global Funding Corp.: 6.750% 12/01/05........................ 2,000,000 2,233,232 Series A, 7.600% 03/15/07........................ 600,000 701,659 Verizon Wireless Capital LLC, 1.488% 12/17/03 (a).................... 2,000,000 1,999,630 Wal-Mart Stores, Inc.: 3.250% 09/29/03........................ 2,500,000 2,513,082 4.375% 07/12/07........................ 425,000 455,858 WellPoint Health Networks, Inc., 6.375% 06/15/06........................ 2,350,000 2,637,111 Wyeth, 6.250% 03/15/06...................... 1,875,000 2,080,369 ------------- 81,933,464 ------------- FINANCIALS (15.3%) American Express Co., 3.000% 05/16/08........................ 3,895,000 3,926,261 American General Finance Corp., 5.375% 09/01/09........................ 150,000 164,114 American International Group, Inc., 2.875% 05/15/08 (d).................... 5,200,000 5,183,152 Associates Corp. of North America, 5.750% 11/01/03........................ 2,500,000 2,537,838 AXA Financial, Inc., 9.000% 12/15/04........................ 2,925,000 3,218,977 See Accompanying Notes to Financial Statements 105 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA SHORT TERM BOND FUND (CONT.) JUNE 30, 2003 (UNAUDITED) PAR VALUE ----------- ------------- Bank One Corp., 2.625% 06/30/08........................ $ 3,100,000 $ 3,051,231 BankAmerica Corp., 6.625% 10/15/07........................ 5,075,000 5,836,636 CIT Group, Inc.: 7.250% 08/15/05........................ 125,000 136,556 7.625% 08/16/05........................ 1,065,000 1,173,352 Citigroup, Inc., 6.750% 12/01/05........................ 2,700,000 3,012,058 Countrywide Home Loans, Inc., 5.250% 06/15/04........................ 1,175,000 1,218,486 Ford Motor Credit Co., 7.375% 10/28/09........................ 5,425,000 5,695,697 General Electric Capital Corp.: 4.500% 07/15/06........................ 850,000 854,649 7.250% 05/03/04........................ 515,000 540,580 General Motors Acceptance Corp., 6.750% 01/15/06........................ 2,500,000 2,655,652 Goldman Sachs Group, Inc., 4.125% 01/15/08........................ 2,560,000 2,692,961 Health Care Property Investors, Inc., 6.875% 06/08/05........................ 2,075,000 2,223,213 Household Finance Corp., 6.400% 06/17/08........................ 3,225,000 3,685,359 Lehman Brothers Holdings, Inc.: 4.000% 01/22/08........................ 1,900,000 1,982,243 8.750% 03/15/05........................ 500,000 557,339 Merrill Lynch & Co., Inc., 2.470% 03/10/06........................ 2,460,000 2,484,484 Morgan Stanley, 6.100% 04/15/06........................ 2,500,000 2,754,010 SLM Corp., 5.625% 04/10/07........................ 4,000,000 4,443,300 Security Capital Group, Inc., 7.150% 06/15/07........................ 6,315,000 7,349,713 U.S. Bancorp, 3.125% 03/15/08........................ 5,750,000 5,800,928 Wachovia Corp., 4.950% 11/01/06........................ 3,300,000 3,595,871 Washington Mutual, Inc., 5.625% 01/15/07........................ 2,600,000 2,868,011 Wells Fargo & Co., 7.250% 08/24/05........................ 2,675,000 2,989,960 Wells Fargo Financial Inc., 7.000% 11/01/05...................... 2,180,000 2,437,482 ------------- 85,070,113 ------------- PAR VALUE ----------- ------------- UTILITIES (2.0%) Alabama Power Co., 3.125% 05/01/08........................ $ 2,500,000 $ 2,531,287 Dominion Resources, Inc., 2.800% 02/15/05........................ 2,050,000 2,078,032 FPL Group Capital, Inc.: 6.875% 06/01/04........................ 250,000 262,096 7.625% 09/15/06........................ 2,500,000 2,890,872 Kinder Morgan Energy Partners LP, 8.000% 03/15/05........................ 915,000 1,008,708 Progress Energy, Inc., 5.850% 10/30/08........................ 1,125,000 1,244,132 Virginia Electric and Power Co., 5.375% 02/01/07........................ 1,200,000 1,311,571 ------------- 11,326,698 ------------- INTERNATIONAL (2.6%) Canadian Government Bond, 6.750% 08/28/06........................ 1,000,000 1,144,976 Italy Government International Bond, 2.500% 03/31/06........................ 1,950,000 1,989,484 Mexico Government International Bond, 4.625% 10/08/08........................ 2,000,000 2,047,000 Province of Ontario, 3.500% 09/17/07........................ 3,500,000 3,645,208 Quebec Province: 5.500% 04/11/06........................ 4,125,000 4,515,836 6.500% 01/17/06...................... 1,100,000 1,226,106 ------------- 14,568,610 ------------- Total Corporate Notes & Bonds (Cost of $186,965,445)............... 192,898,885 ------------- OTHER SECURITIZED LOANS (27.7%) ASSET-BACKED SECURITIES (9.5%) Americredit Automobile Receivables Trust: Series 2000-1, Class B, 7.160% 09/05/05........................ 2,830,000 2,921,408 Series 2001-B, Class A4, 5.370% 06/12/08........................ 1,000,000 1,041,239 Chase Manhattan Auto Owner Trust, Series 2000-A, Class A4, 6.260% 06/15/07........................ 2,000,000 2,060,343 Ford Credit Auto Owner Trust: Series 2000-C, Class A5, 7.260% 07/15/04........................ 976,457 986,019 Series 2002-B, Class A3A, 4.140% 12/15/05........................ 3,500,000 3,579,692 Green Tree Financial Corp., 7.900% 06/15/27........................ 398,354 422,504 Harley Davidson Motorcycle Trust, 3.090% 06/15/10........................ 1,525,000 1,571,202 See Accompanying Notes to Financial Statements 106 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- PAR VALUE ----------- ------------- Honda Auto Receivables Owner Trust: Series 2001-2, Class A4, 5.090% 10/18/06...................... $ 2,750,000 $ 2,833,958 Series 2002-3, Class A3, 3.000% 05/18/06........................ 2,000,000 2,039,925 IMC Home Equity Loan Trust: Series 1995-3, Class A5, 7.500% 04/25/26........................ 1,312,000 1,311,994 Series 1997-3, Class A6, 7.520% 08/20/28........................ 671,505 696,876 Series 1997-3, Class A7, 7.080% 08/20/28........................ 358,045 370,564 Merit Securities Corp., Series 1999-13, Class A4, 7.880% 12/28/33........................ 4,575,000 4,563,866 Nissan Auto Receivables Owner Trust, Series 2002-B, Class A4, 4.600% 09/17/07........................ 2,500,000 2,639,933 SLM Student Loan Trust: Series 1996-2, Class A2, 1.540% 07/27/09 (a).................... 9,693,836 9,799,298 Series 1996-3, Class A2, 1.510% 10/25/09 (a).................... 2,960,510 2,998,877 Series 1997-2, Class A2, 1.430% 01/25/10 (a).................... 2,141,619 2,151,109 Series 1997-3, Class A2, 1.580% 10/25/10 (a).................... 1,742,281 1,759,579 Series 1998-1, Class A2, 1.590% 10/25/11 (a).................... 2,728,045 2,759,797 Series 1998-2, Class A2, 1.560% 01/25/14 (a).................... 4,505,865 4,547,664 Toyota Auto Receivables Owner Trust, Series 2001-C, Class A4, 4.720% 09/15/08...................... 1,675,000 1,745,483 ------------- 52,801,330 ------------- COLLATERALIZED MORTGAGE OBLIGATIONS (17.6%) Bear Stearns Asset-Backed Securities, Inc.: Series 2002-AC5, Class 2A4, 5.625% 11/25/32........................ 2,352,715 2,384,383 Series 2003-AC2, Class A3, 3.500% 06/25/33........................ 5,614,446 5,685,938 Countrywide Home Loans: Series 2001-16, Class 1A13, 6.750% 10/25/31........................ 3,196,611 3,200,702 Series 2002-16, Class 1A1, 6.500% 09/25/32........................ 637,901 650,395 Series 2002-32, Class 2A3, 5.000% 12/25/17........................ 5,258,213 5,350,521 Series 2002-J5, Class 1A1, 5.750% 01/25/33........................ 1,234,568 1,250,771 First Horizon Asset Securities, Inc., Series 2002-6, Class 1A1, 6.000% 11/25/32........................ 388,626 396,533 PAR VALUE ----------- ------------- GMAC Mortgage Corporation Loan Trust, Series 2003-J3, Class A1, 1.535% 05/25/18 (a).................... $ 9,494,169 $ 9,510,737 IMPAC Secured Assets Common Owner Trust: Series 2002-2, Class A7, 4.500% 04/25/33........................ 503,985 505,242 Series 2002-3, Class A2, 5.210% 08/25/32........................ 561,534 566,772 Master Asset Securitization Trust, Series 2002-2, Class 2A1, 6.500% 04/25/32........................ 165,785 166,883 Ocwen Residential MBS Corp., Series 1998-R1, Class A1, 7.000% 10/25/40 (d).................... 504,794 512,111 PNC Mortgage Securities Corp.: Series 1996-PR1, Class A, 5.929% 04/28/27 (a).................... 204,046 207,964 Series 1998-12, Class 4A5, 6.475% 01/25/29........................ 105,443 106,765 Series 1998-14, Class 2A1, 6.250% 01/25/14........................ 3,893,185 3,981,478 Residential Accredited Loans, Inc., Series 2002-QS9, Class A1, 1.635% 07/25/32 (a).................... 652,055 654,373 Residential Asset Securitization Trust: Series 1999-A1, Class A1, 6.750% 03/25/29........................ 411,287 412,279 Series 2002-A1, Class A2, 5.350% 09/25/26........................ 314,084 315,019 Series 2002-A1, Class A4, 6.252% 01/25/30 (a).................... 700,000 718,970 Series 2002-A5, Class A2, 5.820% 01/25/27........................ 4,097,083 4,114,627 Series 2002-A7, Class A2, 5.180% 01/25/27........................ 2,824,969 2,854,879 Series 2002-A14J, Class A14, 6.000% 01/25/33........................ 3,553,953 3,645,644 Residential Funding Mortgage Securities I, Inc.: Series 1999-S25, Class A1, 6.750% 12/25/14........................ 531,190 539,468 Series 2000-S2, Class A3, 7.500% 02/25/30........................ 451,323 452,344 Series 2002-S13, Class A5, 6.250% 10/25/32........................ 2,179,443 2,228,786 Series 2002-S15, Class A2, 5.400% 09/25/32........................ 2,611,415 2,646,865 Series 2002-S16, Class A7, 5.500% 10/25/17........................ 7,297,062 7,448,065 Series 2003-S8, Class A1, 5.000% 05/25/18........................ 11,929,978 12,482,660 See Accompanying Notes to Financial Statements 107 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA SHORT TERM BOND FUND (CONT.) JUNE 30, 2003 (UNAUDITED) PAR VALUE ----------- ------------- SACO I, Inc., Series 1997-2, Class 1A5, 7.000% 08/25/36 (d)................... $ 1,750,000 $ 1,793,403 Structured Asset Mortgage Investments, Inc.: Series 1999-ALS2, Class A2, 6.750% 07/25/29........................ 99,899 99,761 Series 2002-3, Class 1A, 6.750% 07/28/28........................ 92,737 92,664 Series 2002-17, Class 1A3, 6.000% 09/25/32........................ 2,771,385 2,833,847 University Support Services, Inc., Series 1993-A, Class B, 6.500% 08/20/08 (a).................... 1,071 1,081 Washington Mutual Mortgage Securities Corp.: Series 2002-MS7, Class 1A14, 6.000% 11/25/32........................ 3,127,000 3,171,807 Series 2003-MS5, Class 1A4, 1.535% 03/25/18 (a).................... 8,714,958 8,730,166 Series 2003-S4, Class 1A3, 1.810% 06/25/18 (a).................... 5,942,154 5,944,085 Wells Fargo Mortgage-Backed Securities Trust: Series 2002-22, Class 2A2, 5.500% 01/25/33........................ 1,102,161 1,113,618 Series 2002-D, Class 1A1, 5.500% 08/25/32 (a).................. 1,251,614 1,266,788 ------------- 98,038,394 ------------- COMMERCIAL MORTGAGE-BACKED SECURITIES (0.6%) GMAC Commercial Mortgage Asset Corp., Series 2001-FLAA, Class B1, 1.680% 06/15/13 (a)(d)................. 524,289 523,810 Merrill Lynch Mortgage Investors, Inc., Series 1996-C1, Class A3, 7.420% 04/25/28........................ 425,645 438,373 Nationslink Funding Corp., Series 1999-SL, Class A5, 6.888% 11/10/30...................... 2,210,000 2,516,723 ------------- 3,478,906 ------------- Total Other Securitized Loans (Cost of $153,340,348)............... 154,318,630 ------------- SHORT-TERM OBLIGATIONS (20.8%) U.S. TREASURY BILL (1.8%) 1.175% 01/30/03........................ 10,000,000 9,986,861 ------------- PAR VALUE ----------- ------------- REPURCHASE AGREEMENT (19.0%) Repurchase agreement with State Street Bank & Trust Co., dated 06/30/03, due 07/01/03 at 0.950% collateralized by U.S. Treasury Bonds with maturities to 06/30/04, market value of $108,107,184 (repurchase proceeds $105,986,797)...............$105,984,000 $ 105,984,000 ------------- TOTAL SHORT-TERM OBLIGATIONS (Cost of $115,970,861)............... 115,970,861 ------------- TOTAL INVESTMENTS (111.7%) (Cost of $615,232,343) (e)........... 622,253,591 ------------- OTHER ASSETS & LIABILITIES, NET (-11.7%)... (65,332,508) ------------- NET ASSETS (100.0%)........................ $ 556,921,083 ============= NOTES TO SCHEDULE OF INVESTMENTS: (a) Interest rates of variable rate securities change periodically. The rate listed is as of June 30, 2003. (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) Zero coupon bond. (d) This security is exempt from registration under Rule 144A of the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At June 30, 2003, the value of these securities amounted to $11,330,873, which represents 2.0% of net assets. (e) Cost for federal income tax purposes is $615,299,385. ACRONYM NAME ------- ---- TBA To Be Announced COLUMBIA FIXED INCOME SECURITIES FUND JUNE 30, 2003 (UNAUDITED) PAR VALUE ----------- ------------- U.S. GOVERNMENT & AGENCY SECURITIES (43.3%) U.S. TREASURY NOTES & BONDS (15.4%) U.S. Treasury Bonds: 6.250% 08/15/23...................... $24,410,000 $ 29,907,986 8.875% 08/15/17...................... 12,335,000 18,664,397 U.S. Treasury Inflation Index Note, 3.625% 01/15/08...................... 25,218,894 28,300,340 U.S. Treasury Notes: 3.500% 11/15/06...................... 4,400,000 4,639,426 4.875% 02/15/12...................... 6,005,000 6,676,815 ------------- 88,188,964 ------------- See Accompanying Notes to Financial Statements 108 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- PAR VALUE ----------- ------------- FEDERAL HOME LOAN MORTGAGE CORP. (FHLMC) (11.8%) 4.500% TBA (a)....................... $ 5,000,000 $ 5,113,281 5.000% TBA (a)....................... 15,515,000 16,024,078 6.000% 05/01/17 - 12/01/32........... 33,812,480 35,144,734 6.500% 11/15/30 - 08/01/32........... 10,563,933 10,996,965 ------------- 67,279,058 ------------- FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) (10.5%) 5.000% TBA (a)....................... 47,250,000 48,815,156 6.000% 03/01/09 - 03/01/33........... 8,081,018 8,361,709 6.052% 06/01/32...................... 209,141 219,552 6.149% 07/01/32...................... 1,694,919 1,769,600 6.500% 07/01/32 - 08/01/32........... 1,069,985 1,116,128 ------------- 60,282,145 ------------- FEDERAL HOUSING ADMINISTRATION (FHA) (0.6%) FHA Insured Project: Pool #067-22003, 8.200% 06/01/31...................... 1,132,065 1,160,690 Pool #071-94016, 8.625% 05/01/23...................... 2,125,226 2,255,906 ------------- 3,416,596 ------------- AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS (5.0%) FHLMC GNMA Multiclass Mtg. Partn. Ctfs. Gtd., Series 24, Class J, 6.250% 11/25/23...................... 2,310,000 2,487,948 FHLMC Multiclass Mtg. Partn. Ctfs. Gtd.: Series 1558, Class C, 6.500% 07/15/23...................... 1,787,407 1,830,139 Series 1602, Class PJ, 6.500% 10/15/23...................... 510,000 555,884 Series 2085, Class PD, 6.250% 11/15/26...................... 4,775,806 4,840,547 Series 2113, Class MU, 6.500% 08/15/27...................... 2,399,826 2,441,411 Series 2235, Class VN, 7.000% 06/15/14...................... 4,840,000 4,968,073 FNMA Gtd. Remic Pass Thru Ctfs.: Remic Tr. 1996-W2, Class A7, 7.800% 06/25/26...................... 1,022,780 1,094,230 Remic Tr. 2001-55, Class PC, 6.500% 10/25/31...................... 5,418,000 5,636,123 Remic Tr. 2001-56, Class KD, 6.500% 07/25/30...................... 4,790,000 4,919,475 ------------- 28,773,830 ------------- Total U.S. Government & Agency Securities (Cost of $240,696,417)............... 247,940,593 ------------- PAR VALUE ----------- ------------- CORPORATE NOTES & BONDS (36.3%) INDUSTRIALS (20.3%) Abitibi-Consolidated, Inc.: 6.000% 06/20/13...................... $ 75,000 $ 71,382 7.875% 08/01/09...................... 225,000 249,750 Advance PCS, 8.500% 04/01/08...................... 750,000 806,250 Airgas, Inc., 9.125% 10/01/11...................... 210,000 233,625 Alcan, Inc., 7.250% 03/15/31...................... 2,400,000 2,995,469 Allied Waste North America, Inc., 10.000% 08/01/09..................... 550,000 584,375 American Axle & Manufacturing, Inc., 9.750% 03/01/09...................... 600,000 645,000 American Home Products Corp., 6.250% 03/15/06...................... 2,000,000 2,219,060 AmerisourceBergen Corp., 8.125% 09/01/08...................... 500,000 550,000 Anadarko Finance Co., 7.500% 05/01/31...................... 2,610,000 3,289,514 Anadarko Petroleum Corp., 3.250% 05/01/08...................... 1,000,000 1,002,102 Anheuser-Busch Companies, Inc.: 5.625% 10/01/10...................... 3,000,000 3,409,782 5.750% 04/01/10...................... 530,000 606,067 Anthem, Inc., 6.800% 08/01/12...................... 1,550,000 1,812,706 Arch Western Finance, 6.750% 07/01/13 (b).................. 280,000 288,400 AT&T Corp., 8.500% 11/15/31...................... 1,390,000 1,581,588 Ball Corp., 7.750% 08/01/06...................... 600,000 657,000 Boeing Co.: 5.125% 02/15/13...................... 335,000 352,919 6.125% 02/15/33...................... 1,475,000 1,545,555 BP Amoco PLC, 5.900% 04/15/09...................... 1,800,000 2,069,069 British Sky Broadcasting Group, 7.300% 10/15/06...................... 200,000 224,000 Canadian National Railway Co., 7.195% 01/02/16...................... 1,906,913 2,297,362 Canandaigua Brands, Inc., 8.500% 03/01/09...................... 650,000 682,500 Cascades, Inc., 7.250% 02/15/13 (b).................. 235,000 247,338 See Accompanying Notes to Financial Statements 109 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA FIXED INCOME SECURITIES FUND (CONT.) JUNE 30, 2003 (UNAUDITED) PAR VALUE ----------- ------------- Chesapeake Energy Corp.: 7.500% 09/15/13 (b).................. $ 320,000 $ 340,000 8.125% 04/01/11...................... 25,000 26,938 8.375% 11/01/08...................... 165,000 178,613 9.000% 08/15/12...................... 45,000 50,175 ChevronTexaco Capital Co., 3.500% 09/17/07...................... 4,160,000 4,327,378 Cinemark USA, Inc., 9.000% 02/01/13 (b).................. 410,000 444,850 Coca-Cola Enterprises, Inc., 6.750% 01/15/38...................... 1,000,000 1,180,918 Comcast Corp., 7.050% 03/15/33...................... 870,000 970,093 Coors Brewing Co., 6.375% 05/15/12...................... 1,200,000 1,379,501 Costco Wholesale Corp., 5.500% 03/15/07...................... 1,900,000 2,099,416 Cott Beverages, Inc., 8.000% 12/15/11...................... 570,000 615,600 Cox Communications, Inc., 7.875% 08/15/09...................... 235,000 288,877 Cox Enterprises, Inc., 8.000% 02/15/07 (b).................. 2,250,000 2,637,023 CSC Holdings, Inc.: 8.125% 08/15/09...................... 75,000 77,625 9.875% 02/15/13...................... 375,000 391,875 DaimlerChrysler NA Holding Corp., 8.500% 01/18/31...................... 1,175,000 1,388,055 Dex Media East LLC, 12.125% 11/15/12..................... 425,000 502,562 Diageo Capital PLC, 3.375% 03/20/08...................... 2,570,000 2,629,549 DirecTV Holdings, 8.375% 03/15/13 (b).................. 210,000 234,150 Equistar Chemical: 10.125% 09/01/08..................... 25,000 25,750 10.625% 05/01/11 (b)................. 25,000 25,625 Ethyl Corp., 8.875% 05/01/10 (b).................. 50,000 51,000 Extended Stay America, Inc., 9.875% 06/15/11...................... 500,000 537,500 General Electric Co., 5.000% 02/01/13...................... 5,375,000 5,688,217 Grant Prideco, Inc.: 9.000% 12/15/09...................... 460,000 510,600 9.625% 12/01/07...................... 40,000 44,200 Harrah's Operating Co., Inc., 7.875% 12/15/05...................... 250,000 271,875 PAR VALUE ----------- ------------- Hasbro, Inc., 8.500% 03/15/06...................... $ 600,000 $ 657,000 HCA, Inc., 6.910% 06/15/05...................... 500,000 530,445 Houghton Mifflin Co., 9.875% 02/01/13 (b).................. 405,000 439,425 International Business Machines Corp., 5.875% 11/29/32...................... 3,460,000 3,724,749 International Game Technology, 8.375% 05/15/09...................... 250,000 307,142 Iron Mountain, Inc., 8.625% 04/01/13...................... 1,000,000 1,070,000 ITT Corp., 6.750% 11/15/05...................... 425,000 443,596 John Deere Capital Corp., 3.900% 01/15/08...................... 1,400,000 1,455,964 K & F Industries, Inc., 9.625% 12/15/10...................... 285,000 316,350 KB Home, 8.625% 12/15/08...................... 500,000 567,500 Kennametal, Inc., 7.200% 06/15/12...................... 115,000 125,861 Key Energy Services, Inc., 6.375% 05/01/13...................... 130,000 131,950 L-3 Communications Corp., 7.625% 06/15/12...................... 410,000 451,000 Lamar Media Corp.: 7.250% 01/01/13...................... 150,000 159,000 8.625% 09/15/07...................... 250,000 259,375 Lear Corp., 7.960% 05/15/05...................... 600,000 639,000 LIN Television Corp., 6.500% 05/15/13 (b).................. 300,000 299,250 Lowe's Companies, Inc., 6.500% 03/15/29...................... 1,200,000 1,365,379 MacDermid, Inc., 9.125% 07/15/11...................... 30,000 33,525 Mediacom LLC, 9.500% 01/15/13...................... 500,000 528,750 Newell Rubbermaid, Inc., 4.000% 05/01/10...................... 2,545,000 2,597,122 Nextel Communications, Inc.: 9.750% 10/31/07...................... 300,000 310,500 10.650% 09/15/07..................... 200,000 206,500 Occidental Petroleum Corp., 4.250% 03/15/10...................... 1,825,000 1,906,778 Offshore Logistics, Inc., 6.125% 06/15/13 (b).................. 405,000 406,012 Omnicare, Inc., 8.125% 03/15/11...................... 100,000 108,500 See Accompanying Notes to Financial Statements 110 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- PAR VALUE ----------- ------------- Owens-Illinois, Inc., 7.350% 05/15/08...................... $ 250,000 $ 250,000 Park Place Entertainment Corp., 9.375% 02/15/07...................... 600,000 664,500 Peabody Energy Corp., 6.875% 03/15/13 (b).................. 375,000 392,813 Pepsi Bottling Holdings, Inc., 5.625% 02/17/09 (b).................. 4,050,000 4,547,753 Phillips Petroleum Co., 8.500% 05/25/05...................... 2,675,000 3,014,589 Pogo Producing Co., 8.250% 04/15/11...................... 65,000 71,987 Premier Parks, Inc., 9.750% 06/15/07...................... 330,000 202,950 Pride International, Inc., 9.375% 05/01/07...................... 500,000 516,250 Procter & Gamble Co., 4.750% 06/15/07...................... 1,950,000 2,113,285 R.H. Donnelley Financial Corp.: 8.875% 12/15/10 (b).................. 50,000 55,250 10.875% 12/15/12 (b)................. 360,000 419,400 Rogers Cable, Inc., 7.875% 05/01/12...................... 470,000 512,300 Scotts Co., 8.625% 01/15/09...................... 530,000 567,100 Select Medical Corp., 9.500% 06/15/09...................... 500,000 543,125 Silgan Holdings, Inc., 9.000% 06/01/09...................... 600,000 621,000 Sinclair Broadcasting Group, Inc.: 8.000% 03/15/12...................... 380,000 405,650 8.000% 03/15/12 (b).................. 60,000 64,050 Smurfit-Stone Container Corp.: 8.250% 10/01/12...................... 130,000 139,425 9.750% 02/01/11...................... 455,000 498,225 Speedway Motorsports, Inc., 6.750% 06/01/13 (b).................. 200,000 207,000 Starwood Hotels & Resorts Worldwide, Inc., 7.375% 05/01/07...................... 175,000 184,187 Station Casinos, Inc.: 8.875% 12/01/08...................... 75,000 78,750 9.875% 07/01/10...................... 500,000 550,000 Synagro Technologies, Inc., 9.500% 04/01/09...................... 75,000 80,625 TCI Communications, Inc., 7.250% 08/01/05...................... 1,800,000 1,960,729 Teekay Shipping Corp., 8.875% 07/15/11...................... 775,000 849,594 Time Warner, Inc., 7.975% 08/15/04...................... 1,950,000 2,069,086 PAR VALUE ----------- ------------- Toll Corp., 7.750% 09/15/07...................... $ 600,000 $ 623,250 Triad Hospitals, Inc., 8.750% 05/01/09...................... 600,000 638,250 Union Pacific Corp., 3.875% 02/15/09...................... 2,340,000 2,394,583 United Rentals, Inc., 10.750% 04/15/08..................... 500,000 546,250 United Technologies Corp., 7.125% 11/15/10...................... 4,125,000 4,984,023 Universal Compression, Inc., 7.250% 05/15/10 (b).................. 50,000 52,000 Verizon Global Funding Corp., 7.250% 12/01/10...................... 2,175,000 2,616,662 Viacom, Inc., 5.500% 05/15/33...................... 1,100,000 1,097,514 Vintage Petroleum, Inc., 9.750% 06/30/09...................... 245,000 263,375 Wal-Mart Stores, Inc., 4.375% 07/12/07...................... 2,350,000 2,520,624 WellPoint Health Networks, Inc., 6.375% 06/15/06...................... 2,365,000 2,653,944 Westport Resources Corp., 8.250% 11/01/11...................... 610,000 667,950 Winn-Dixie Stores, Inc., 8.875% 04/01/08...................... 305,000 323,300 XTO Energy, Inc., 7.500% 04/15/12...................... 600,000 681,000 Yum! Brands, Inc., 8.500% 04/15/06...................... 500,000 560,000 ------------- 116,581,799 ------------- FINANCIALS (10.7%) American General Finance Corp., 5.375% 09/01/09...................... 850,000 929,981 Bank of America Corp.: 5.875% 02/15/09...................... 1,355,000 1,543,051 7.800% 02/15/10...................... 2,700,000 3,333,344 Bank One Corp., 2.625% 06/30/08...................... 2,800,000 2,755,950 CIT Group, Inc., 7.250% 08/15/05...................... 970,000 1,059,677 Citigroup, Inc., 7.250% 10/01/10...................... 2,350,000 2,851,436 Equitable Companies, Inc., 9.000% 12/15/04...................... 2,475,000 2,723,750 Ford Motor Credit Co., 7.375% 10/28/09...................... 5,700,000 5,984,419 General Electric Capital Corp., 6.750% 03/15/32...................... 665,000 780,440 See Accompanying Notes to Financial Statements 111 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA FIXED INCOME SECURITIES FUND (CONT.) JUNE 30, 2003 (UNAUDITED) PAR VALUE ----------- ------------- General Motors Acceptance Corp., 4.500% 07/15/06 (a).................. $ 2,615,000 $ 2,629,304 Goldman Sachs Group, Inc., 6.125% 02/15/33...................... 1,525,000 1,641,158 Health Care Property Investors, Inc., 6.450% 06/25/12...................... 2,390,000 2,604,961 Health Care REIT, Inc., 7.500% 08/15/07...................... 500,000 534,239 Household Finance Corp., 6.400% 06/17/08...................... 2,550,000 2,914,005 iStar Financial, Inc., 7.000% 03/15/08...................... 200,000 209,351 Lehman Brothers Holdings, Inc., 4.000% 01/22/08...................... 2,800,000 2,921,201 Merrill Lynch & Co., Inc., 2.470% 03/10/06...................... 3,000,000 3,029,859 Morgan Stanley: 4.250% 05/15/10...................... 955,000 984,431 6.100% 04/15/06...................... 1,650,000 1,817,647 SLM Corp., 5.125% 08/27/12...................... 3,900,000 4,151,683 US Bank NA, 6.375% 08/01/11...................... 4,000,000 4,676,988 Wachovia Corp., 4.950% 11/01/06...................... 3,530,000 3,846,493 Washington Mutual, Inc., 5.625% 01/15/07...................... 2,505,000 2,763,218 Wells Fargo & Co., 4.875% 06/12/07...................... 4,175,000 4,536,355 ------------- 61,222,941 ------------- UTILITIES (2.6%) Dominion Resources, Inc., 2.800% 02/15/05...................... 2,750,000 2,787,603 FPL Group Capital, Inc., 6.125% 05/15/07...................... 3,525,000 3,890,965 Kinder Morgan Energy Partners LP, 6.750% 03/15/11...................... 2,750,000 3,202,705 Progress Energy, Inc., 7.750% 03/01/31...................... 1,215,000 1,464,889 SEMCO Energy, Inc., 7.125% 05/15/08 (b).................. 15,000 15,675 Southern Power Co., 6.250% 07/15/12...................... 3,000,000 3,401,604 ------------- 14,763,441 ------------- INTERNATIONAL (2.7%) British Columbia Province, 5.375% 10/29/08...................... 1,900,000 2,138,777 PAR VALUE ----------- ------------- Hydro-Quebec, 6.970% 03/01/05...................... $ 1,000,000 $ 1,089,025 Ontario Province: 3.500% 09/17/07...................... 3,825,000 3,983,692 7.000% 01/30/07...................... 2,490,000 2,896,829 Republic of Italy, 2.500% 03/31/06...................... 2,750,000 2,805,682 United Mexican States, 8.000% 09/24/22...................... 2,105,000 2,362,862 ------------- 15,276,867 ------------- Total Corporate Notes & Bonds (Cost of $191,124,940)............... 207,845,048 ------------- OTHER SECURITIZED LOANS (15.2%) ASSET-BACKED SECURITIES (6.8%) Cityscape Home Equity Loan Trust, Series 1997-4, Class A4, 7.440% 10/25/18...................... 1,070,639 1,113,746 ContiMortgage Home Equity Loan Trust, Series 1999-3, Class A6, 7.680% 12/25/29...................... 2,700,000 2,908,209 IMC Home Equity Loan Trust: Series 1995-3, Class A5, 7.500% 04/25/26...................... 1,980,000 1,979,991 Series 1997-3, Class A6, 7.520% 08/20/28...................... 2,463,727 2,556,814 Series 1997-5, Class A9, 7.310% 11/20/28...................... 5,840,000 6,151,880 Merit Securities Corp., Series 13, Class A4, 7.880% 12/28/33...................... 5,265,000 5,252,187 Nationslink Funding Corp., Series 1999-SL, Class A5, 6.888% 05/10/07...................... 2,470,000 2,812,808 New Century Home Equity Loan Trust, Series 1999-NCA, Class A7, 7.320% 07/25/29...................... 1,475,044 1,573,515 Oakwood Mortgage Investors, Inc., Series 2000-D, Class A4, 7.400% 07/15/30...................... 6,395,000 6,061,276 Salomon Brothers Mortgage Securities VII, Inc., Series 1998-AQ1, Class A5, 7.150% 06/25/28...................... 1,960,000 2,099,944 SLM Student Loan Trust, Series 1997-4, Class A2, 1.657% 10/25/10 (c).................. 6,185,098 6,246,504 ------------- 38,756,874 ------------- COLLATERALIZED MORTGAGE OBLIGATIONS (7.9%) Bear Stearns Asset-Backed Securities, Inc., Series 2002-AC5, Class 2A4, 5.625% 11/25/33...................... 4,564,267 4,625,702 See Accompanying Notes to Financial Statements 112 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- PAR VALUE ----------- ------------- Bear Stearns Mortgage Securities, Inc., Series 1996-2, Class A1, 4.187% 01/28/25 (c).................. $ 934,248 $ 934,227 CMC Securities Corp. IV, Series 1997-2, Class IA12, 7.250% 11/25/27...................... 82,524 82,509 Countrywide Home Loans, Inc.: Series 2002-5, Class 2A1, 6.000% 04/25/17...................... 3,731,270 3,824,155 Series 2002-16, Class 1A1, 6.500% 09/25/32...................... 2,383,871 2,430,559 Credit Suisse First Boston Mortgage Securities Corp., Series 2001-11, Class 1A3, 7.000% 06/25/31...................... 701,692 718,903 IMPAC Secured Assets Common Owner Trust, Series 2002-3, Class A2, 5.210% 08/25/32...................... 2,620,494 2,644,937 Master Asset Securitization Trust, Series 2002-2, Class 2A1, 6.500% 04/25/32...................... 352,733 355,070 PNC Mortgage Securities Corp., Series 1998-12, Class 4A4, 6.500% 01/25/29...................... 573,346 578,077 Residential Asset Securitization Trust: Series 2002-A1, Class A2, 5.350% 09/25/26...................... 842,793 845,301 Series 2002-A1, Class A4, 6.252% 01/25/30 (c).................. 5,098,000 5,236,155 Series 2002-A5, Class A2, 5.820% 01/25/27...................... 2,704,617 2,716,199 Series 2002-A7, Class A2, 5.180% 11/25/27...................... 6,755,712 6,827,240 Residential Funding Mortgage Securities I: Series 2002-S15, Class A2, 5.400% 09/25/23...................... 1,217,791 1,234,322 Series 2002-S16, Class A7, 5.500% 10/25/17...................... 5,730,904 5,849,497 Series 2003-S8, Class A1, 5.000% 05/25/18 (a).................. 5,467,907 5,721,219 Structured Asset Securities Corp.: Series 1999-ALS2, Class A2, 6.750% 07/25/29...................... 161,375 161,152 Series 2001-12, Class 1A4, 5.800% 09/25/31...................... 525,255 530,095 ------------- 45,315,319 ------------- PAR VALUE ----------- ------------- COMMERCIAL MORTGAGE-BACKED SECURITIES (0.5%) GMAC Commercial Mortgage Asset Corp., Series 2001-FLAA, Class B1, 1.680% 06/15/13 (b)(c)............... $ 2,907,252 $ 2,904,593 ------------- Total Other Securitized Loans (Cost of $85,746,079)................ 86,976,786 ------------- SHORT-TERM OBLIGATIONS (16.7%) U.S. TREASURY BILL (1.8%) 1.165% 08/14/03...................... 10,000,000 9,986,861 ------------- REPURCHASE AGREEMENT (14.9%) Repurchase agreement with State Street Bank & Trust Co., dated 06/30/03, due 07/01/03 at 0.950%, collateralized by U.S. Treasury Notes with maturities to 08/15/09, market value of $87,032,992 (repurchase proceeds $85,326,252)......................... 85,324,000 85,324,000 ------------- Total Short-Term Obligations (Cost of $95,310,861)................ 95,310,861 ------------- TOTAL INVESTMENTS (111.5%) (Cost of $612,878,297) (d)........... 638,073,288 ------------- OTHER ASSETS & LIABILITIES, NET (-11.5%). (66,191,683) ------------- NET ASSETS (100.0%)...................... $ 571,881,605 ============= 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 June 30, 2003, the value of these securities amounted to $14,071,607, which represents 2.5% of net assets. (c) Variable rate security. The rate reported is the rate in effect at June 30, 2003. (d) Cost for federal income tax purposes is $613,844,724. COLUMBIA NATIONAL MUNICIPAL BOND FUND JUNE 30, 2003 (UNAUDITED) PAR VALUE ----------- ------------- MUNICIPAL BONDS (97.6%) ALASKA (2.8%) Industrial Development & Export Authority, Snettisham Hydroelectric, Series 1: Pre-refunded, 5.500% 01/01/08...................... $ 5,000 $ 5,686 Unrefunded, 5.500% 01/01/08...................... 95,000 107,055 See Accompanying Notes to Financial Statements 113 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA NATIONAL MUNICIPAL BOND FUND (CONT.) JUNE 30, 2003 (UNAUDITED) PAR VALUE ----------- ------------- Municipal Bond Bank Authority, Series C, 5.500% 09/15/16................... $ 100,000 $ 113,935 Palmer Valley Hospital Association, 5.350% 12/01/12...................... 125,000 136,009 State Housing Finance Corp., Veterans Mortgage, Series A2, 6.000% 06/01/15...................... 115,000 123,714 ------------- 486,399 ------------- ARIZONA (1.5%) South Conway County School District No. 17, Series 2003 B, 4.000% 06/01/15...................... 250,000 253,695 ------------- ARKANSAS (1.6%) Little Rock Waste Disposal Revenue, Series 2002, 5.000% 05/01/16...................... 250,000 268,970 ------------- CALIFORNIA (1.6%) State Department of Water Resource, Power Supply Revenue, Series 2002, 5.000% 05/01/16...................... 250,000 271,237 ------------- COLORADO (0.2%) Housing Finance Authority, Single Family, 4.875% 04/01/07...................... 35,000 36,760 ------------- IDAHO (1.5%) Boise City Housing Authority Revenue, Hobler Place Project, Series 2002, 4.750% 02/01/07...................... 145,000 145,090 Health Facilities Authority, Bingham Memorial Hospital Project, 5.850% 03/01/19...................... 100,000 100,839 Student Loan Fund Marketing Association, Series C, 5.600% 04/01/07...................... 10,000 10,248 ------------- 256,177 ------------- ILLINOIS (10.4%) Broadview Tax Increment Revenue, 4.900% 07/01/06...................... 75,000 76,823 Chicago Housing Authority Capital, Series 2001, 5.375% 07/01/19...................... 250,000 265,275 Chicago Motor Fuel Tax Revenue, Series 2003 A, 5.250% 01/01/17...................... 250,000 279,157 Chicago Park District Aquarium & Museum, 5.800% 01/01/18...................... 150,000 170,446 PAR VALUE ----------- ------------- Chicago Public Building Community Building Revenue, Chicago School Reform, Series 1999 B, 5.250% 12/01/16...................... $ 250,000 $ 290,355 Lake County Community Unified School District No. 095, Lake Zurich, Capital Appreciation, Series 2000, (a) 12/01/17......................... 340,000 178,116 Madison & St. Clair Counties School District No. 010, Collinsville School Building, 5.500% 02/01/12...................... 250,000 288,465 Regional Transportation Authority, Series A, 6.400% 06/01/12...................... 100,000 124,248 Will County Forest Preservation District, Series 1999 B, (a) 12/01/11......................... 150,000 110,558 ------------- 1,783,443 ------------- INDIANA (3.8%) Board Bank Revenue, Special Program, Hendricks, Series 2002 D, 5.375% 04/01/15...................... 250,000 283,312 Transportation Financial Authority, Airport Facilities, Series A, 5.500% 11/01/17...................... 100,000 106,506 West Lafayette Industrial Building Corp., First Mortgage, Police Station Project, 5.000% 07/15/18...................... 250,000 268,678 ------------- 658,496 ------------- IOWA (2.6%) Finance Authority: Health Care Facilities Revenue, Genesis Medical Center, 6.100% 07/01/15...................... 285,000 331,609 Single Family Mortgage, Series A, 5.800% 07/01/16...................... 115,000 121,408 ------------- . 453,017 ------------- KENTUCKY (0.5%) Louisville & Jefferson County Visitors & Convention Commission, Series 1999 BBB, (a) 12/01/08......................... 100,000 79,458 ------------- LOUISIANA (3.3%) Calcasieu Parish School District No. 31, Public School Import, Series 2000, 5.500% 05/01/16...................... 250,000 283,215 State Gas & Fuel Tax Revenue, Series 2002 A, 5.250% 06/01/11...................... 250,000 287,135 ------------- 570,350 ------------- See Accompanying Notes to Financial Statements 114 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- PAR VALUE ----------- ------------- MAINE (0.6%) Regional Waste System Industry Solid Waste Resource Recovery, Series Q, 5.500% 07/01/04...................... $ 100,000 $ 104,330 ------------- MICHIGAN (6.3%) Lansing Board Water & Light Water Supply Steam & Electric Utility System, Series A, 5.000% 07/01/15...................... 260,000 283,517 State Hospital Finance Authority, Ascension Health Credit, Series A: 5.375% 11/15/33...................... 100,000 112,897 6.000% 11/15/19...................... 100,000 121,662 Sturgis Public School District, School Building & Site, 5.500% 05/01/14...................... 250,000 285,185 Warren Downtown Development, Series 2002, 5.000% 10/01/16...................... 250,000 276,503 ------------- 1,079,764 ------------- MISSISSIPPI (2.3%) Development Bank, Convention Center Project, 6.500% 07/01/13...................... 230,000 287,702 Jones County Hospital, Refunding South Central Regional Medical Center, 4.900% 12/01/04...................... 100,000 103,942 ------------- 391,644 ------------- MONTANA (1.3%) Whitefish Tax Increment, Urban Renewal Revenue, 6.625% 07/15/20...................... 200,000 218,568 ------------- NEVADA (1.7%) State, Colorado River Commission, Hoover Dam Project, Series 2002, 5.375% 10/01/14...................... 250,000 287,917 ------------- NEW YORK (3.3%) New York City: AMBAC TCRS, Series 2000, 5.750% 08/01/11...................... 250,000 290,560 Series A, 6.000% 05/15/21...................... 250,000 274,698 ------------- 565,258 ------------- NORTH DAKOTA (1.6%) Fargo School District Building Authority Development, Series 2000, 5.500% 05/01/13...................... 250,000 283,010 ------------- PAR VALUE ----------- ------------- OHIO (2.5%) Oak Hills Local School District, 7.200% 12/01/09...................... $ 100,000 $ 126,807 State Water Development Authority Revenue, Fresh Water, Series 2001 B, 5.500% 12/01/18...................... 250,000 298,582 ------------- 425,389 ------------- OKLAHOMA (1.4%) Okmulgee County, 1st Mortgage, 6.000% 03/01/15...................... 200,000 232,188 ------------- OREGON (12.5%) Bend Municipal Airport Project, Series B, 5.375% 06/01/13...................... 100,000 110,537 Benton County Hospital Facilities Authority Refunding, Samaritan Health Services Project: 4.200% 10/01/05...................... 40,000 42,265 4.600% 10/01/09...................... 40,000 43,001 Clackamas County, Limited Tax Assessment, 6.250% 05/01/15...................... 200,000 202,036 Damascus Water District, Certificates of Participation, 5.250% 03/01/19...................... 100,000 104,704 Deschutes County Hospital Facilities Authority, Cascade Health Services, Inc., Series 2002, 5.600% 01/01/27...................... 100,000 104,992 Eugene Trojan Nuclear Project, 5.900% 09/01/09...................... 30,000 30,160 Health Sciences University, Capital Appreciation, Series 1996 A, (a) 07/01/16......................... 100,000 58,143 Hillsboro Hospital Facility Authority Refunding, Tuality Healthcare, 5.250% 10/01/04...................... 100,000 103,783 Klamath Community College District: 4.700% 04/01/10...................... 55,000 59,617 4.800% 04/01/11...................... 25,000 26,952 Lebanon Urban Renewal Agency, 5.625% 06/01/19...................... 100,000 106,186 Port of St. Helens Pollution Control, Portland General Electric Co., Series B, 4.800% 06/01/10...................... 105,000 91,661 See Accompanying Notes to Financial Statements 115 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA NATIONAL MUNICIPAL BOND FUND (CONT.) JUNE 30, 2003 (UNAUDITED) PAR VALUE ----------- ------------- Portland Community College District, Series 2001 B, 5.250% 06/01/12...................... $ 100,000 $ 114,529 Redmond Urban Renewal Agency, Downtown Area B, 5.650% 06/01/13...................... 100,000 104,232 Salem Hospital Facilities Authority, Capital Manor, Inc., Series 1994, 7.500% 12/01/24...................... 150,000 156,081 School Boards Association, Flexfund Financing Program, Series E, 5.500% 06/01/05...................... 100,000 100,246 State Housing & Community Services Department, Single Family Mortgage Program, Series B, 6.000% 07/01/12...................... 35,000 37,010 State Veterans Welfare, Series 75, 5.875% 10/01/18...................... 20,000 20,928 Sunriver Library County Service District, 5.750% 06/01/04...................... 20,000 20,857 Washington & Clackamas Counties School District No. 23J Tigard, Series 2000, (a) 06/15/21......................... 300,000 127,443 Washington County Housing Authority: Affordable Housing Pool, Series A, 6.000% 07/01/20...................... 100,000 98,847 Multi-Family Tualatin Meadows, 5.900% 11/01/18...................... 100,000 106,721 West Linn Oregon Water System, 6.000% 10/01/20...................... 165,000 178,875 ------------- 2,149,806 ------------- SOUTH CAROLINA (1.3%) Charleston County School District, Series 2001, 5.000% 02/01/18...................... 200,000 217,172 ------------- SOUTH DAKOTA (1.0%) State Building Authority, Lease Capital Appreciation, Series 1996 A, (a) 12/01/13......................... 250,000 168,285 ------------- TENNESSEE (3.8%) Lawrenceburg Public Building Authority, Electric System Public Works, Series C, 5.500% 07/01/16...................... 295,000 335,686 PAR VALUE ----------- ------------- Metropolitan Government Nashville, Series 2002 A, 5.125% 10/01/13...................... $ 285,000 $ 323,831 ------------- 659,517 ------------- TEXAS (10.3%) Amarillo Health Facilities Corp., Baptist St. Anthony's Hospital Corp., 5.500% 01/01/13...................... 100,000 114,780 Cleburne Capital Appreciation Certificates of Obligation, Series 1998, (a) 02/15/17......................... 450,000 223,479 Donna Independent School District, Series 2002, 5.000% 02/15/14...................... 250,000 279,735 Harris County Health Facilities, de Teco Project, Series 1999 B, 5.700% 02/15/15...................... 150,000 171,153 Laredo Sports Venue Sales Tax, 5.750% 03/15/13...................... 200,000 229,602 Lubbock Health Facility Development, St. Joseph's Health System, 5.250% 07/01/12...................... 150,000 159,198 Magnolia Independent School District, 5.250% 08/15/17...................... 280,000 310,036 North Texas Municipal Water District, Texas Water System Revenue, 5.000% 09/01/14...................... 250,000 274,793 ------------- 1,762,776 ------------- WASHINGTON (13.8%) Grant County Public Hospital, District No. 3, Columbia Basin Hospital, 5.250% 12/01/18...................... 170,000 176,293 Jefferson County, Public Utility District No. 1, Water & Sewer: 5.250% 05/01/16...................... 50,000 53,101 5.250% 05/01/17...................... 50,000 52,809 King County Public Hospital District No. 4, Snoqualmie Valley Hospital, 7.000% 12/01/11...................... 150,000 160,707 Pierce County Housing Authority, 5.400% 12/01/13...................... 100,000 98,976 Port of Grays Harbor, 6.375% 12/01/14...................... 150,000 171,326 Seattle Municipal Light & Power: 5.000% 07/01/13...................... 235,000 257,208 6.000% 10/01/16...................... 150,000 176,127 See Accompanying Notes to Financial Statements 116 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- PAR VALUE ----------- ------------- Shelton Water & Sewer, 5.250% 12/01/18...................... $ 50,000 $ 53,100 State Certificates of Participation, Department of General Administration, 5.400% 07/01/13...................... 100,000 109,729 State Health Care Facilities Authority Revenue, Grays Harbor Community Hospital, Series 1996, 5.700% 07/01/16...................... 200,000 217,866 State Public Power Supply System: Nuclear Project No. 1 Revenue, Series 1997 B, 5.125% 07/01/14...................... 300,000 325,008 Nuclear Project No. 2 Refunding, Series A, 5.000% 07/01/11...................... 50,000 54,793 Nuclear Project No. 3 Revenue, Capital Appreciation, Series 1989 B, (a) 07/01/12......................... 145,000 101,993 Tacoma Solid Waste Utilities: Pre-refunded, Series 1997 B, 6.000% 12/01/09...................... 15,000 18,141 Unrefunded, Series 1997 B, 6.000% 12/01/09...................... 85,000 101,856 Thurston County School District No. 401, Rochester, 4.800% 12/01/07...................... 55,000 55,596 Toppenish, 4.600% 12/01/06...................... 65,000 70,679 University of Washington Educational Research Properties Lease, 4225 Roosevelt Project, Series A, 5.375% 06/01/29...................... 100,000 100,801 Yakima County School District No. 119 Selah, 5.000% 12/01/06...................... 10,000 11,121 ------------- 2,367,230 ------------- WISCONSIN (3.5%) Door County, Corporate Purpose, Series 2002 A, 5.000% 09/01/13...................... 300,000 331,767 Marshall School District, Series 2002 A, 5.000% 03/01/14...................... 250,000 275,520 ------------- 607,287 ------------- PAR VALUE ----------- ------------- WYOMING (0.6%) Municipal Power Agency, Power Supply Refunding, Series 1998, 5.250% 01/01/11...................... $ 100,000 $ 111,236 ------------- Total Municipal Bonds (Cost of $15,683,459)................ 16,749,379 ------------- TAX EXEMPT MONEY MARKET INVESTMENT (0.7%) SHARES SEI Tax Exempt Trust, (Cost of $128,600)................... 128,600 128,600 ------------- TOTAL INVESTMENTS (98.3%) (Cost of $15,812,059) (b) ........... 16,877,979 ------------- OTHER ASSETS & LIABILITIES, NET (1.7%)..... 290,819 ------------- NET ASSETS (100.0%)........................ $ 17,168,798 ============= NOTES TO SCHEDULE OF INVESTMENTS: (a) Zero coupon bond. (b) Cost for federal income tax purposes is $15,808,720. ACRONYM NAME ------- ---- AMBAC American Municipal Bond Assurance Corp. TCRS Transferable Custodial Receipts COLUMBIA OREGON MUNICIPAL BOND FUND JUNE 30, 2003 (UNAUDITED) PAR VALUE ----------- ------------- GENERAL OBLIGATION BONDS (40.7%) STATE OF OREGON GENERAL OBLIGATIONS (5.7%) Board of Higher Education: 4.875% 08/01/19...................... $ 1,000,000 $ 1,050,040 Series A: 5.250% 08/01/14...................... 1,480,000 1,676,796 5.250% 08/01/16...................... 5,330,000 5,926,960 5.250% 08/01/18...................... 3,390,000 3,707,541 Deferred Interest, Series A: (a) 08/01/14......................... 490,000 319,161 (a) 08/01/17......................... 1,050,000 570,811 Elderly & Disabled Housing, Series B, Refunding : 4.950% 08/01/20...................... 1,000,000 1,048,290 6.250% 08/01/13...................... 215,000 217,885 State of Oregon, Series A, 5.250% 10/15/15...................... 1,735,000 1,976,061 See Accompanying Notes to Financial Statements 117 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA OREGON MUNICIPAL BOND FUND (CONT.) JUNE 30, 2003 (UNAUDITED) PAR VALUE ----------- ------------- Veteran's Welfare: 5.850% 10/01/15...................... $ 635,000 $ 668,598 7.300% 07/01/08...................... 1,170,000 1,446,178 8.000% 01/01/08...................... 1,275,000 1,583,270 8.000% 07/01/08...................... 580,000 735,046 8.250% 07/01/07...................... 540,000 667,775 9.200% 04/01/07...................... 2,390,000 3,004,732 9.200% 10/01/08...................... 385,000 514,356 Series 80 A, 5.700% 10/01/32...................... 5,000,000 5,215,350 ------------- 30,328,850 ------------- GENERAL OBLIGATIONS (18.1%) Aurora, 5.600% 06/01/24...................... 1,205,000 1,258,213 Canyonville South Umpqua Rural Fire District, 5.400% 07/01/31...................... 610,000 641,159 Clackamas County: Lake Oswego Series: 5.375% 06/01/15...................... 2,450,000 2,760,097 5.375% 06/01/16...................... 1,295,000 1,441,866 5.375% 06/01/17...................... 2,535,000 2,815,143 School District No. 62C, 5.375% 06/15/17...................... 4,000,000 4,428,040 School District No. 086, 6.000% 06/15/16...................... 2,350,000 2,760,545 School District No. 108, 5.375% 06/15/15...................... 1,055,000 1,200,896 Clackamas & Washington Counties, School District No. 003JT, (a) 06/15/17......................... 6,000,000 3,239,700 Coos Bay, 4.900% 09/01/07...................... 2,390,000 2,656,294 Crook County School District, 5.000% 02/01/14...................... 2,860,000 3,189,844 Eugene Public Safety Facilities: 5.500% 06/01/10...................... 850,000 931,183 5.625% 06/01/13...................... 1,295,000 1,421,301 Jackson County: School District No. 4, Phoenix-Talent, 5.500% 06/15/16...................... 1,000,000 1,140,950 School District No. 6, Central Point, 6.000% 06/15/09...................... 1,090,000 1,295,007 School District No. 9, Eagle Point, 5.625% 06/15/15...................... 1,920,000 2,201,453 PAR VALUE ----------- ------------- Lane County, School District No. 4J Eugene, Refunding: 5.000% 07/01/12...................... $ 2,470,000 $ 2,809,329 5.250% 07/01/13...................... 1,000,000 1,161,760 Metro Washington Park Zoo, Series A, 5.300% 01/15/11...................... 1,000,000 1,100,880 Multnomah-Clackamas Counties, School District No. 10JT, Gresham, 5.250% 06/01/17...................... 1,620,000 1,711,109 Multnomah County, Series A, 5.500% 04/01/19...................... 2,395,000 2,647,098 Portland Community College District, Series A: 5.375% 06/01/14...................... 1,925,000 2,190,034 5.375% 06/01/16...................... 2,705,000 3,029,519 5.375% 06/01/17...................... 2,540,000 2,824,378 Portland Limited Tax: Series A: 3.400% 06/01/13...................... 5,640,000 5,661,206 4.900% 04/01/12...................... 1,430,000 1,545,501 5.750% 06/01/14...................... 700,000 720,027 Series B: (a) 06/01/12......................... 1,750,000 1,266,738 (a) 06/01/13......................... 1,500,000 1,034,055 (a) 06/01/14......................... 1,000,000 655,560 (a) 06/01/16......................... 3,500,000 2,042,075 (a) 06/01/18......................... 4,000,000 2,079,240 (a) 06/01/19......................... 4,000,000 1,962,320 (a) 06/01/20......................... 4,000,000 1,839,560 Portland Parks, Series A, Refunding, 5.000% 06/01/15...................... 3,950,000 4,316,007 Salem-Keizer School District No. 24J, 5.000% 06/01/19...................... 3,500,000 3,725,540 Washington & Clackamas Counties: Deferred Interest, Series A, (a) 06/01/10......................... 1,520,000 1,205,451 School District No. 23J, Tigard, (a) 06/15/18......................... 2,700,000 1,386,801 Washington County: 5.500% 06/01/16...................... 2,785,000 3,155,210 Criminal Justice Facilities, Refunding, 5.000% 12/01/10...................... 1,400,000 1,555,302 School District No. 48J, Beaverton: 5.125% 01/01/14...................... 2,000,000 2,218,460 5.125% 01/01/17...................... 1,820,000 1,963,853 5.125% 01/01/18...................... 2,260,000 2,421,929 See Accompanying Notes to Financial Statements 118 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- PAR VALUE ----------- ------------- Washington, Multnomah & Yamhill Counties School District No. 1J: 5.000% 11/01/13...................... $ 1,375,000 $ 1,577,689 5.000% 06/01/13...................... 1,500,000 1,667,730 5.250% 06/01/14...................... 500,000 560,460 ------------- 95,416,512 ------------- INSURED GENERAL OBLIGATIONS (16.9%) Benton & Linn Counties School District No. 509J, Corvallis, 5.000% 06/01/17...................... 2,665,000 2,937,550 Chemeketa Community College District, Series B, 5.600% 06/01/14...................... 1,180,000 1,308,891 Clackamas Community College: 5.250% 06/15/15...................... 1,500,000 1,688,880 5.250% 06/15/18...................... 1,560,000 1,719,853 Clackamas County, School District No. 12, North Clackamas: 5.250% 06/01/11...................... 1,000,000 1,118,040 5.250% 06/01/15...................... 2,750,000 3,023,020 Columbia County, School District No. 502, Deferred Interest: (a) 06/01/12......................... 1,530,000 1,108,454 (a) 06/01/13......................... 1,685,000 1,168,396 (a) 06/01/14......................... 1,025,000 674,829 Coos County, School District No. 13, North Bend, 5.500% 06/15/15...................... 1,765,000 2,060,055 Deschutes County, School District No. 1, Series A, 5.500% 06/15/18...................... 1,000,000 1,132,770 Jefferson County, School District No. 509J, Madras School District, 5.250% 06/15/18...................... 1,075,000 1,197,002 Josephine County, School District No. 7, Grants Pass, 5.700% 06/01/13...................... 2,000,000 2,245,740 Lane & Douglas Counties, School District No. 45J3, 4.450% 06/15/18...................... 1,615,000 1,679,519 Lane County, School District No. 19, Springfield, Refunding: 6.000% 10/15/12...................... 1,740,000 2,131,065 6.000% 10/15/14...................... 1,310,000 1,611,418 PAR VALUE ----------- ------------- Lincoln County School District, 5.600% 06/15/10...................... $ 3,480,000 $ 4,004,158 Linn Benton Community College: (a) 06/15/13......................... 1,000,000 692,420 (a) 06/15/14......................... 1,000,000 655,980 Linn County, Community School District No. 9, Lebanon: (a) 06/15/15......................... 710,000 776,903 (a) 06/15/21......................... 2,000,000 2,124,680 Marion County Certificates of Participation, Courthouse Square Project, Series A, 4.400% 06/01/10...................... 430,000 466,451 Marion County, School District No. 103C, Woodburn, Series B: (a) 11/01/09......................... 2,500,000 2,077,900 (a) 11/01/11......................... 2,210,000 1,662,141 Multnomah-Clackamas Counties, Centennial School District No. 28-302: 5.375% 06/15/16...................... 2,055,000 2,310,190 5.375% 06/15/17...................... 2,280,000 2,546,395 5.375% 06/15/18...................... 2,490,000 2,775,454 Multnomah County: School District No. 7, Reynolds: 5.000% 06/15/18...................... 1,000,000 1,066,960 5.625% 06/15/14...................... 2,670,000 3,079,418 5.625% 06/15/17...................... 1,000,000 1,131,740 School District No. 40, 5.000% 02/01/14...................... 1,790,000 1,973,940 Series A MBIA-IBC (AMT), 5.500% 04/01/18...................... 2,010,000 2,279,300 Northern Oregon Corrections: 5.250% 09/15/12...................... 1,000,000 1,098,480 5.300% 09/15/13...................... 1,000,000 1,105,060 Salem-Keizer School District No. 24J: 5.000% 06/01/15...................... 1,000,000 1,087,100 5.000% 06/01/16...................... 1,180,000 1,272,913 State Department Administrative Services, Certificates of Participation, Refunding: Series A: 4.500% 05/01/12...................... 1,020,000 1,098,846 5.000% 05/01/13...................... 4,240,000 4,646,489 5.000% 05/01/14...................... 1,000,000 1,090,860 Series C, 5.250% 11/01/17...................... 5,000,000 5,592,600 See Accompanying Notes to Financial Statements 119 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA OREGON MUNICIPAL BOND FUND (CONT.) JUNE 30, 2003 (UNAUDITED) PAR VALUE ----------- ------------- Washington & Clackamas Counties, School District No. 23J, Tigard: 5.375% 06/15/17...................... $ 1,500,000 $ 1,694,145 5.375% 06/15/20...................... 2,435,000 2,708,840 Washington County: School District No. 15, Forest Grove: 5.250% 06/01/10...................... 1,000,000 1,151,020 5.375% 06/15/13...................... 2,070,000 2,364,023 5.375% 06/15/15...................... 2,515,000 2,862,799 School District No. 48J, Beaverton: 5.100% 06/01/12...................... 500,000 549,025 5.250% 08/01/10...................... 1,150,000 1,286,815 School District No. 088J, Sherwood, Unrefunded, 6.100% 06/01/12...................... 185,000 201,926 Yamhill County: School District No. 029J, 5.250% 06/15/16...................... 2,535,000 2,849,391 School District No. 40, 6.000% 06/01/09...................... 500,000 595,580 ------------- 89,685,424 ------------- Total General Obligation Bonds (Cost of $200,633,120)............... 215,430,786 ------------- REVENUE BONDS (53.5%) OREGON REVENUE (35.2%) Albany Hospital Facility Authority, Mennonite Home, 5.625% 10/01/17...................... 635,000 634,181 Bend Municipal Airport Project, Series B (AMT), 5.375% 06/01/13...................... 150,000 165,805 Benton County Hospital Facilities Authority, Samaritan Health Services Project, Refunding: 4.400% 10/01/07...................... 220,000 235,259 4.800% 10/01/11...................... 245,000 262,777 5.200% 10/01/17...................... 2,255,000 2,350,815 Clackamas County Hospital Facility Authority: Kaiser Permanente, Series A, 5.375% 04/01/14...................... 7,085,000 7,607,519 PAR VALUE ----------- ------------- Legacy Health System: 4.600% 05/01/10...................... $ 885,000 $ 953,136 5.000% 02/15/15...................... 1,510,000 1,596,689 5.000% 02/15/16...................... 1,010,000 1,059,571 5.375% 02/15/12...................... 3,135,000 3,468,062 5.500% 02/15/13...................... 2,385,000 2,606,376 5.500% 02/15/14...................... 5,450,000 6,006,009 5.750% 05/01/12...................... 2,000,000 2,311,460 Legacy Health System, Refunding: 5.250% 05/01/21...................... 1,500,000 1,562,910 5.750% 05/01/16...................... 1,500,000 1,662,855 Odd Fellows Home, Series A, Refunding, 5.875% 09/15/21...................... 1,190,000 1,188,632 Robison Jewish Home Project, 6.250% 10/01/21...................... 1,650,000 1,734,332 Willamette Falls Hospital Project: 5.750% 04/01/14...................... 1,005,000 1,053,883 6.000% 04/01/19...................... 1,750,000 1,811,355 Willamette View, Inc. Project: 6.000% 11/01/08...................... 670,000 694,509 Series A, 6.850% 11/01/15...................... 1,580,000 1,718,977 Clackamas County Housing Authority, Multi-Family Housing, Easton Ridge, Series A, 5.800% 12/01/16...................... 2,255,000 2,357,512 Clatsop Care Center Health District, Senior Housing, 6.875% 08/01/28...................... 500,000 516,660 Deschutes County Hospital Facilities Authority: 5.750% 01/01/09...................... 1,670,000 1,766,743 Cascade Health Services, Inc.: 5.500% 01/01/22...................... 2,000,000 2,097,420 5.600% 01/01/27...................... 5,550,000 5,827,056 5.600% 01/01/32...................... 2,000,000 2,097,000 Deschutes Valley Water District, 5.875% 09/01/05...................... 2,315,000 2,515,039 Eugene Airport, Refunding (AMT): 5.650% 05/01/06...................... 325,000 352,862 5.650% 05/01/07...................... 555,000 611,588 5.700% 05/01/08...................... 515,000 571,501 Hillsboro Hospital Facility Authority, Tuality Healthcare, 5.750% 10/01/12...................... 3,810,000 3,948,227 Lebanon Urban Renewal Agency, 5.625% 06/01/19...................... 1,000,000 1,061,860 Lebanon Wastewater, Refunding, 5.750% 06/01/11...................... 1,225,000 1,262,914 See Accompanying Notes to Financial Statements 120 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- PAR VALUE ----------- ------------- Multnomah County Educational Facilities, University of Portland Project: 5.700% 04/01/15...................... $ 1,000,000 $ 1,107,030 6.000% 04/01/20...................... 500,000 541,035 6.000% 04/01/25...................... 500,000 539,530 Myrtle Point Water, 6.000% 12/01/20...................... 510,000 553,748 North Clackamas Parks & Recreation District Facilities, 5.700% 04/01/13...................... 2,920,000 3,386,382 Northern Wasco County, People's Utility District Electric: (a) 02/01/06......................... 610,000 554,344 (a) 02/01/07......................... 585,000 495,162 (a) 02/01/08......................... 610,000 481,028 (a) 02/01/11......................... 500,000 317,260 Oregon State Department of Transportation, Highway User Tax, Series A: 5.125% 11/15/26...................... 555,000 593,251 5.500% 11/15/16...................... 2,500,000 2,875,900 Oregon State Economic Development, Dove Lewis 24 Hour Emergency Animal Hospital, 7.000% 12/01/19...................... 1,425,000 1,530,764 Oregon State Health, Housing, Educational & Cultural Facilities Authority: Authority/Aquarium: 4.750% 10/01/08...................... 1,550,000 325,500 4.900% 10/01/09...................... 670,000 140,700 Goodwill Industries Lane County, Series A, 6.650% 11/15/22...................... 3,955,000 4,069,893 Linfield College Project, Series A: 4.550% 10/01/08...................... 525,000 564,333 4.650% 10/01/09...................... 555,000 594,488 5.500% 10/01/18...................... 1,000,000 1,041,420 Reed College Project, Series A, 5.300% 07/01/11...................... 500,000 543,655 St. Anthony's Village Housing, Series A (AMT), 7.250% 06/01/28...................... 1,380,000 1,421,717 Oregon State Housing & Community Services: Department of Housing, Finance Assisted Insured Multi-Unit B, 6.800% 07/01/13...................... 8,360,000 8,362,592 Department Mortgage Multi-Family Housing, Series B (AMT), 6.000% 07/01/31...................... 6,935,000 7,283,068 PAR VALUE ----------- ------------- Department Mortgage Single Family Program: Series A, 4.850% 07/01/10...................... $ 255,000 $ 273,036 Series A (AMT), 6.200% 07/01/27...................... 2,440,000 2,568,124 Series B (AMT), 5.250% 07/01/30...................... 740,000 754,511 Series D, 6.700% 07/01/13...................... 1,000,000 1,007,810 Series E: 5.375% 07/01/21...................... 3,770,000 3,958,349 5.700% 07/01/12...................... 985,000 1,050,355 5.800% 07/01/14...................... 875,000 913,412 6.000% 07/01/20...................... 2,445,000 2,621,113 Series F (AMT), 5.650% 07/01/28...................... 1,170,000 1,210,189 Series F MBIA-IBC (AMT), 5.650% 07/01/28...................... 875,000 905,056 Series G (AMT), 5.700% 07/01/32...................... 1,155,000 1,197,712 Series H (AMT), 5.500% 07/01/17...................... 1,740,000 1,811,827 Series J, 5.150% 07/01/24...................... 2,840,000 2,894,784 Series L, 6.050% 07/01/20...................... 750,000 801,150 Series L (AMT), 5.900% 07/01/31...................... 3,955,000 4,119,172 Series M (AMT), 5.800% 07/01/12...................... 655,000 701,079 Series Q: 4.700% 07/01/15...................... 820,000 849,290 4.900% 07/01/17...................... 805,000 822,082 Mountain Shadows Apts. B-1, 6.250% 12/01/05...................... 4,000,000 3,702,280 Oregon State Housing Finance, 5.800% 07/01/09...................... 250,000 250,787 Port Morrow, 6.700% 06/01/20...................... 2,000,000 2,054,880 Port of St. Helens: 5.600% 08/01/14...................... 315,000 327,011 5.750% 08/01/19...................... 425,000 441,575 Port of St. Helens Pollution Control, Portland General Electric Co: Series A, 4.800% 04/01/10...................... 5,195,000 4,533,832 Series B, 4.800% 06/01/10...................... 3,500,000 3,055,360 See Accompanying Notes to Financial Statements 121 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA OREGON MUNICIPAL BOND FUND (CONT.) JUNE 30, 2003 (UNAUDITED) PAR VALUE ----------- ------------- Portland Housing Authority: Multi-Family Housing, Senior Lien Civic Apartments, Series A, 5.600% 01/01/18...................... $ 1,240,000 $ 1,299,570 Pool Housing, Series A, Refunding, 4.500% 01/01/09...................... 660,000 702,913 Portland Sewer System Revenue, Series A, Refunding, 5.000% 06/01/12...................... 4,835,000 5,299,644 Powell Valley Water District, 6.000% 02/01/15...................... 620,000 674,703 Prineville Sewer First Lien, 6.500% 07/01/04...................... 265,000 277,895 Redmond Urban Renewal Agency: Downtown Area B: 5.650% 06/01/13...................... 720,000 750,470 5.850% 06/01/19...................... 785,000 818,826 South Airport Industrial Area A, Refunding, 5.700% 06/01/19...................... 650,000 664,033 Reedsport Water, 7.000% 10/01/14...................... 520,000 542,131 Salem Hospital Facility Authority: 5.000% 08/15/18...................... 2,000,000 2,056,460 5.250% 08/15/14...................... 4,860,000 5,245,592 Capital Manor, Inc., 7.500% 12/01/24...................... 905,000 941,689 Sheridan Water Revenue: 6.200% 05/01/15...................... 625,000 695,356 6.450% 05/01/20...................... 520,000 575,130 Sheridan Water Revenue, Refunding, 5.350% 04/01/18...................... 300,000 316,419 South Fork Water Board First Lien, 5.450% 02/01/14...................... 1,300,000 1,327,300 State of Oregon French American International School Project, Series A, 6.250% 04/01/27...................... 5,370,000 5,639,413 Umatilla County, Hospital Facility Authority, Catholic Health Initiatives, Series A: 5.750% 12/01/20...................... 530,000 566,305 6.000% 12/01/30...................... 4,825,000 5,211,241 PAR VALUE ----------- ------------- Veneta Urban Renewal Agency: 5.375% 02/15/16...................... $ 700,000 $ 747,992 5.625% 06/15/21...................... 1,100,000 1,158,036 Washington County Housing Authority: Affordable Housing, Series A, 6.000% 07/01/20...................... 2,000,000 1,976,940 Affordable Housing Pool, Series A: 5.750% 07/01/23...................... 1,000,000 1,017,550 6.000% 07/01/23...................... 1,000,000 981,740 Multi-Family Bethany Meadows Project (AMT), 6.250% 08/01/10...................... 775,000 776,356 ------------- 186,082,774 ------------- INSURED REVENUE (18.3%) Clackamas County, Hospital Facilities Authority, Legacy Health System, MBIA IBC, 5.500% 02/15/13...................... 495,000 564,493 Deschutes County, Certificates of Participation, Series A, 5.050% 06/01/17...................... 420,000 443,831 Emerald Peoples Utilities District: 7.350% 11/01/10...................... 2,160,000 2,785,968 7.350% 11/01/11...................... 2,000,000 2,611,900 7.350% 11/01/12...................... 2,490,000 3,297,806 7.350% 11/01/13...................... 2,675,000 3,582,494 Series A, 5.250% 11/01/20...................... 605,000 664,453 Eugene Electric Utilities System: 4.750% 08/01/13...................... 1,000,000 1,013,010 Series B: 4.550% 08/01/10...................... 600,000 601,716 4.650% 08/01/11...................... 375,000 376,102 5.000% 08/01/18...................... 1,000,000 1,003,210 5.000% 08/01/23...................... 525,000 526,685 Series B, Refunding, 5.250% 08/01/13...................... 1,040,000 1,180,660 Marion County, Certificates of Participation, Courthouse Square Project, Series A, 4.600% 06/01/12...................... 355,000 381,717 Medford Hospital Facilities Authority, Asante Health System, Series A: 5.250% 08/15/08...................... 1,645,000 1,878,442 5.250% 08/15/10...................... 1,500,000 1,692,045 5.250% 08/15/11...................... 800,000 893,464 See Accompanying Notes to Financial Statements 122 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- PAR VALUE ----------- ------------- Multnomah County Educational Facilities Authority, University of Portland Project, Refunding: 5.000% 04/01/11...................... $ 1,150,000 $ 1,262,183 5.750% 04/01/10...................... 2,000,000 2,275,840 Ontario Catholic Health Holy Rosary Medical Center, 5.500% 11/15/12...................... 1,500,000 1,636,125 Oregon State Department of Administrative Services: Certificates of Participation: Series A, 5.300% 05/01/08...................... 750,000 845,025 Series B: 5.000% 11/01/12...................... 1,000,000 1,100,100 5.000% 11/01/13...................... 1,000,000 1,094,090 Lottery Education Project, Series A: 5.000% 04/01/14...................... 2,705,000 2,984,291 5.250% 04/01/11...................... 4,000,000 4,493,440 5.250% 04/01/13...................... 1,600,000 1,776,784 5.250% 04/01/15...................... 1,315,000 1,452,996 Oregon State Economic Community Development Department, Series A, 5.375% 01/01/11...................... 1,105,000 1,239,501 Oregon State Health, Housing, Educational & Cultural Facilities Authority: Lewis & Clark College, 6.000% 10/01/13...................... 965,000 1,036,506 Reed College Project, Series A, 5.100% 07/01/10...................... 900,000 1,021,581 Oregon State Health Sciences University, Series A: (a) 07/01/09......................... 1,530,000 1,284,037 (a) 07/01/12......................... 1,315,000 954,046 (a) 07/01/14......................... 2,495,000 1,633,876 (a) 07/01/15......................... 4,325,000 2,677,824 (a) 07/01/21......................... 12,435,000 5,327,403 5.250% 07/01/22...................... 1,000,000 1,078,640 Oregon State Housing & Community Services Department, Single Family Mortgage Project, Series J (AMT), 5.750% 07/01/29...................... 7,300,000 7,572,874 Port of Portland International Airport: Series 11 (AMT), 5.625% 07/01/13...................... 1,000,000 1,090,820 PAR VALUE ----------- ------------- Series 12B, Refunding, 5.250% 07/01/12...................... $ 1,000,000 $ 1,106,490 Series 12C (AMT): 4.750% 07/01/10...................... 2,900,000 3,119,704 5.000% 07/01/13...................... 1,000,000 1,061,280 5.000% 07/01/14...................... 1,750,000 1,856,348 Series D, 5.250% 07/01/12...................... 1,750,000 1,940,680 Portland Arena Gas Tax: (a) 06/01/16......................... 1,100,000 533,808 (a) 07/01/17......................... 2,320,000 1,050,519 Portland Gas Tax, Series A, 5.800% 06/01/16...................... 1,640,000 1,812,905 Portland Housing Authority, Multi-Family Housing, Lovejoy Station Apartments Project (AMT), 5.900% 07/01/23...................... 1,000,000 1,067,880 Portland Urban Renewal & Redevelopment, South Park Blocks, Series A: 5.750% 06/15/17...................... 2,065,000 2,406,159 5.750% 06/15/19...................... 2,580,000 2,992,232 Salem Water & Sewer, 5.300% 06/01/15...................... 1,500,000 1,676,220 Tri-County Metropolitan Transportation District: Series 1, 5.400% 06/01/19...................... 4,200,000 4,413,654 Series A, 5.000% 09/01/15...................... 1,000,000 1,119,900 Tualatin Hills Park & Recreation District, 5.750% 03/01/14...................... 990,000 1,180,625 Washington County Housing Authority, Multi-Family Housing, Tualatin Meadows (AMT), 5.900% 11/01/18...................... 995,000 1,061,874 Washington County Unified Sewer Agency, 5.500% 10/01/16...................... 1,250,000 1,396,775 ------------- 97,133,031 ------------- Total Revenue Bonds (Cost of $268,707,189)............... 283,215,805 ------------- PRE-REFUNDED BOND (0.1%) Oregon State City Sewer, 6.500% 10/01/07 (Cost of $497,292)................... 500,000 550,980 ------------- See Accompanying Notes to Financial Statements 123 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA OREGON MUNICIPAL BOND FUND (CONT.) JUNE 30, 2003 (UNAUDITED) PAR VALUE ----------- ------------- OTHER BONDS (2.9%) Hood River Urban Renewal Agency, 6.250% 12/15/11...................... $ 1,250,000 $ 1,383,475 Lebanon Special Obligation, Lease Water, Refunding, 5.400% 10/01/13...................... 755,000 769,768 Lebanon Urban Renewal Agency: 5.750% 06/01/15...................... 1,120,000 1,196,798 6.000% 06/01/20...................... 1,580,000 1,688,341 Medford Urban Renewal, 5.875% 09/01/10...................... 500,000 543,335 Multnomah County, Certificates of Participation, 4.550% 08/01/10...................... 1,000,000 1,089,210 Oregon State Department of Administrative Services, Certificates of Participation, Series B, Refunding: 5.250% 05/01/10...................... 840,000 965,446 5.250% 05/01/11...................... 2,000,000 2,304,760 Portland Airport Way Urban Renewal & Redevelopment, Convention Center, Series A: 5.750% 06/15/17...................... 1,500,000 1,747,815 5.750% 06/15/18...................... 2,050,000 2,377,549 Seaside Urban Renewal Agency, Greater Seaside Urban Renewal, 5.250% 06/01/15...................... 1,000,000 1,063,600 Wilsonville Limited Tax Improvement, 5.000% 12/01/20...................... 445,000 449,672 ------------- Total Other Bonds (Cost of $14,327,288)................ 15,579,769 ------------- U.S. TERRITORIES BONDS (0.5%) Guam Housing Corp., Single Family Mortgage-Backed Securities, Series A (AMT), 5.750% 09/01/31...................... 175,000 191,056 Puerto Rico Housing Finance Corp., Multi-Family Mortgage Portfolio A-1, 7.500% 04/01/22...................... 1,045,000 1,045,115 Virgin Islands Public Finance Authority, Unrefunded Balance, Series A, 7.300% 10/01/18...................... 1,185,000 1,606,682 ------------- Total U.S. Territories Bonds (Cost of $2,596,513)................. 2,842,853 ------------- SHARES VALUE ----------- ------------- TAX EXEMPT MONEY MARKET INVESTMENT (0.5%) SEI Tax Exempt Trust, (Cost of $2,459,832)................. 2,459,832 $ 2,459,832 ------------- TOTAL INVESTMENTS (98.2%) (Cost of $489,221,234) (b)........... 520,080,025 ------------- OTHER ASSETS & LIABILITIES, NET (1.8%)..... 9,298,678 ------------- NET ASSETS (100.0%)........................ $ 529,378,703 ============= NOTES TO SCHEDULE OF INVESTMENTS: (a) Zero coupon bond. (b) Cost for federal income tax purposes is $489,093,027. ACRONYM NAME ------- ---- AMT Alternative Minimum Tax IBC Insured Bond Certificates MBIA Municipal Bond Insurance Association COLUMBIA HIGH YIELD FUND JUNE 30, 2003 (UNAUDITED) PAR VALUE ----------- ------------- CORPORATE NOTES & BONDS (90.4%) AEROSPACE & DEFENSE (2.4%) K&F Industries, 9.625% 12/15/10 (a).................... $ 9,180,000 $ 10,189,800 L-3 Communications Corp., 7.625% 06/15/12........................ 24,775,000 27,252,500 ------------- 37,442,300 ------------- AMUSEMENT & RECREATION (2.3%) Cinemark USA, Inc., 9.000% 02/01/13 (a).................... 20,790,000 22,557,150 Speedway Motorsports, Inc., 6.750% 06/01/13 (a).................... 12,910,000 13,361,850 ------------- 35,919,000 ------------- AUTOMOTIVE & AUTO PARTS (2.6%) American Axle & Manufacturing, Inc., Senior Subordinated Notes, 9.750% 03/01/09........................ 18,175,000 19,538,125 Lear Corp., Series B: 7.960% 05/15/05........................ 5,350,000 5,697,750 8.110% 05/15/09........................ 12,725,000 14,570,125 ------------- 39,806,000 ------------- BROADCASTING (1.4%) Sinclair Broadcasting Group, Inc.: 8.000% 03/15/12........................ 1,520,000 1,622,600 8.000% 03/15/12 (a).................... 11,190,000 11,945,325 8.750% 12/15/11........................ 6,610,000 7,254,475 ------------- 20,822,400 ------------- See Accompanying Notes to Financial Statements 124 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- PAR VALUE ----------- ------------- CABLE TV (7.0%) British Sky Broadcasting: 6.875% 02/23/09........................ $ 5,000,000 $ 5,650,000 7.300% 10/15/06........................ 7,425,000 8,316,000 CSC Holdings, Inc.: Senior Notes, 7.875% 12/15/07........................ 7,950,000 8,128,875 Senior Subordinated Debentures: 9.875% 02/15/13........................ 11,770,000 12,299,650 10.500% 05/15/16....................... 3,150,000 3,433,500 Series B, 8.125% 08/15/09........................ 1,500,000 1,552,500 Mediacom LLC: 9.500% 01/15/13........................ 17,650,000 18,664,875 Series B, 8.500% 04/15/08........................ 6,500,000 6,565,000 Rogers Cable, Inc.: 6.250% 06/15/13 (a).................... 10,475,000 10,448,813 7.875% 05/01/12........................ 15,850,000 17,276,500 Rogers Communications, Inc., 8.875% 07/15/07........................ 1,000,000 1,030,000 TCI Communications, Inc., 8.750% 08/01/15........................ 10,750,000 13,964,583 ------------- 107,330,296 ------------- CAPITAL GOODS (0.6%) Kennametal, Inc., 7.200% 06/15/12........................ 9,045,000 9,899,237 ------------- CASINOS & GAMING (6.5%) Harrahs Operating Co., Inc., 7.875% 12/15/05........................ 25,400,000 27,622,500 International Game Technology: 7.875% 05/15/04........................ 5,750,000 6,047,011 8.375% 05/15/09........................ 3,575,000 4,392,131 Park Place Entertainment Corp.: 7.875% 03/15/10........................ 150,000 161,250 8.875% 09/15/08........................ 500,000 551,250 9.375% 02/15/07........................ 30,075,000 33,308,062 Station Casinos, Inc.: 8.875% 12/01/08........................ 14,097,000 14,801,850 9.875% 06/01/10........................ 12,065,000 13,271,500 ------------- 100,155,554 ------------- CHEMICALS (2.7%) Airgas, Inc., 9.125% 10/01/11........................ 8,134,000 9,089,745 Equistar Chemicals LP: 10.125% 09/01/08....................... 7,370,000 7,591,100 10.625% 05/01/11 (a)................... 4,805,000 4,925,125 PAR VALUE ----------- ------------- Ethyl Corp., 8.875% 05/01/10 (a).................... $16,400,000 $ 16,728,000 MacDermid, Inc., 9.125% 07/15/11........................ 2,145,000 2,397,038 ------------- 40,731,008 ------------- COAL (2.0%) Arch Western Finance LLC, 6.750% 07/01/13 (a).................. 16,890,000 17,312,250 Peabody Energy Corp., 6.875% 03/15/13........................ 13,750,000 14,403,125 ------------- 31,715,375 ------------- CONSUMER PRODUCTS (3.5%) Hasbro, Inc.: 6.150% 07/15/08........................ 16,620,000 17,201,700 8.500% 03/15/06........................ 14,025,000 15,357,375 Playtex Products, Inc., 9.375% 06/01/11........................ 1,050,000 1,050,000 Scotts Co., 8.625% 01/15/09........................ 18,915,000 20,239,050 ------------- 53,848,125 ------------- DIVERSIFIED MEDIA (4.9%) DirecTV Holdings LLC, 8.375% 03/15/13 (a).................... 11,730,000 13,078,950 Houghton Mifflin Co., 9.875% 02/01/13 (a).................... 16,340,000 17,728,900 Lamar Media Corp.: 7.250% 01/01/13 (a).................... 24,883,000 26,375,980 8.625% 09/15/07........................ 3,160,000 3,278,500 Lin Television Corp., 6.500% 05/15/13 (a).................... 14,125,000 14,089,688 ------------- 74,552,018 ------------- ENERGY (8.6%) Chesapeake Energy Corp.: 7.500% 09/15/13 (a).................... 9,625,000 10,226,563 8.125% 04/01/11........................ 3,050,000 3,286,375 8.375% 11/01/08........................ 6,170,000 6,679,025 9.000% 08/15/12........................ 7,350,000 8,195,250 Grant Prideco: 9.000% 12/15/09 (a).................... 12,920,000 14,341,200 9.625% 12/01/07........................ 9,355,000 10,337,275 Key Energy Services, Inc., 6.375% 05/01/13........................ 7,130,000 7,236,950 Pogo Producing Co., 8.250% 04/15/11........................ 3,080,000 3,411,100 See Accompanying Notes to Financial Statements 125 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA HIGH YIELD FUND (CONT.) JUNE 30, 2003 (UNAUDITED) PAR VALUE ----------- ------------- Pride International, Inc.: 9.375% 05/01/07........................ $ 5,995,000 $ 6,189,837 10.000% 06/01/09....................... 6,950,000 7,610,250 Semco Energy, Inc.: 7.125% 05/15/08 (a).................... 620,000 647,900 7.750% 05/15/13 (a).................... 2,975,000 3,168,375 Vintage Petroleum, Inc.: 7.875% 05/15/11........................ 500,000 536,250 8.625% 02/01/09........................ 1,000,000 1,027,500 9.750% 06/30/09........................ 7,675,000 8,250,625 Westport Resources Corp.: 8.250% 11/01/11........................ 18,805,000 20,591,475 8.250% 11/01/11 (a).................... 1,175,000 1,286,625 XTO Energy, Inc.: 6.250% 04/15/13 (a).................... 1,600,000 1,700,000 7.500% 04/15/12........................ 15,015,000 17,042,025 ------------- 131,764,600 ------------- ENVIRONMENTAL (2.4%) Allied Waste North America, Inc., Series B, 10.000% 08/01/09....................... 29,070,000 30,886,875 Synagro Technologies, Inc., 9.500% 04/01/09........................ 6,150,000 6,580,500 ------------- 37,467,375 ------------- FINANCIALS (1.0%) iStar Financial, Inc.: 7.000% 03/15/08........................ 10,450,000 10,938,590 8.750% 08/15/08........................ 2,890,000 3,150,100 ------------- 14,088,690 ------------- FOOD, BEVERAGE & TOBACCO (3.7%) Constellation Brands, Inc.: 8.000% 02/15/08........................ 1,500,000 1,646,250 8.125% 01/15/12........................ 9,015,000 9,736,200 8.500% 03/01/09........................ 8,900,000 9,345,000 8.625% 08/01/06........................ 5,100,000 5,559,000 Cott Beverages, Inc., 8.000% 12/15/11........................ 27,650,000 29,862,000 ------------- 56,148,450 ------------- HEALTH CARE (8.6%) AdvancePCS, 8.500% 04/01/08........................ 8,700,000 9,352,500 AmerisourceBergen Corp.: 7.250% 11/15/12 (a).................... 12,130,000 13,161,050 8.125% 09/01/08........................ 16,375,000 18,012,500 PAR VALUE ----------- ------------- Apogent Technologies, Inc., 6.500% 05/15/13 (a).................... $ 2,150,000 $ 2,219,875 HCA, Inc.: 6.910% 06/15/05........................ 7,025,000 7,452,759 6.950% 05/01/12........................ 2,750,000 2,930,598 7.000% 07/01/07........................ 1,000,000 1,072,727 7.875% 02/01/11........................ 2,875,000 3,219,735 8.750% 09/01/10........................ 11,150,000 12,988,356 Omnicare, Inc.: 6.125% 06/01/13........................ 3,950,000 4,029,000 Series B, 8.125% 03/15/21........................ 10,690,000 11,598,650 Province Healthcare Co., 7.500% 06/01/13........................ 12,775,000 12,583,375 Select Medical Corp., 9.500% 06/15/09........................ 11,200,000 12,166,000 Triad Hospitals, Inc., Series B, 8.750% 05/01/09........................ 19,200,000 20,424,000 ------------- 131,211,125 ------------- HOMEBUILDERS (2.5%) KB Home: 7.750% 02/01/10........................ 5,050,000 5,460,312 8.625% 12/15/08........................ 6,200,000 7,037,000 9.500% 02/15/11........................ 7,575,000 8,569,219 Toll Brothers, Inc., 8.250% 02/01/11........................ 1,000,000 1,115,000 Toll Corp.: 7.750% 09/15/07........................ 3,670,000 3,812,213 8.000% 05/01/09........................ 5,765,000 6,175,756 8.125% 02/01/09........................ 3,750,000 3,989,063 8.250% 12/01/11........................ 2,200,000 2,464,000 ------------- 38,622,563 ------------- HOTELS (2.7%) Extended Stay America, Inc.: 9.150% 03/15/08........................ 10,890,000 11,366,437 9.875% 06/15/11........................ 9,000,000 9,675,000 Host Marriott LP: Series E, 8.375% 02/15/06........................ 6,625,000 6,856,875 Series I, 9.500% 01/15/07........................ 875,000 940,625 ITT Corp., 6.750% 11/15/05........................ 6,055,000 6,319,943 Starwood Hotels & Resorts Worldwide, Inc., 7.375% 05/01/07........................ 5,300,000 5,578,250 ------------- 40,737,130 ------------- See Accompanying Notes to Financial Statements 126 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- PAR VALUE ----------- ------------- LEISURE (1.1%) Six Flags, Inc.: 9.500% 02/01/09........................ $ 7,405,000 $ 7,293,925 9.750% 06/15/07........................ 4,980,000 4,930,200 9.750% 04/15/13........................ 4,625,000 4,578,750 ------------- 16,802,875 ------------- PACKAGING (6.4%) Ball Corp.: 6.875% 12/15/12 (a).................... 13,752,000 14,577,120 7.750% 08/01/06........................ 2,850,000 3,120,750 8.250% 08/01/08........................ 7,000,000 7,350,000 Constar International, Inc., 11.000% 12/01/12....................... 11,400,000 12,312,000 Owens-Brockway Glass Container: 8.875% 02/15/09........................ 1,000,000 1,085,000 8.875% 11/15/12........................ 1,750,000 1,898,750 Owens-Illinois, Inc.: 7.150% 05/15/05........................ 8,225,000 8,430,625 7.350% 05/15/08........................ 5,400,000 5,400,000 8.100% 05/15/07........................ 6,400,000 6,560,000 Silgan Holdings, Inc., 9.000% 06/01/09........................ 20,496,000 21,213,360 Smurfit-Stone Container Corp., 8.250% 10/01/12........................ 4,580,000 4,912,050 Stone Container Corp.: 8.375% 07/01/12........................ 1,110,000 1,190,475 9.750% 02/01/11........................ 9,800,000 10,731,000 ------------- 98,781,130 ------------- PAPER PRODUCTS (1.7%) Abitibi-Consolidated, Inc.: 6.000% 06/20/13........................ 4,000,000 3,807,044 7.875% 08/01/09........................ 13,225,000 14,679,750 Cascades, Inc., 7.250% 02/15/13 (a).................... 7,580,000 7,977,950 ------------- 26,464,744 ------------- PRINTING & PUBLISHING (2.9%) Dex Media East LLC, 12.125% 11/15/12 (a)................... 18,550,000 21,935,375 R.H. Donnelley Financial Corp.: 8.875% 12/15/10 (a).................... 1,320,000 1,458,600 10.875% 12/15/12....................... 17,445,000 20,323,425 ------------- 43,717,400 ------------- RAILROAD (0.4%) Kansas City Southern: 7.500% 06/15/09........................ 1,655,000 1,714,994 9.500% 10/01/08........................ 4,550,000 5,056,187 ------------- 6,771,181 ------------- PAR VALUE ----------- ------------- REAL ESTATE INVESTMENT TRUST (REIT) (0.9%) Health Care REIT, Inc., 7.500% 08/15/07........................ $12,875,000 $ 13,756,667 ------------- RESTAURANTS (2.0%) Yum! Brands, Inc.: 7.450% 05/15/05........................ 1,810,000 1,945,750 7.650% 05/15/08........................ 3,975,000 4,491,750 7.700% 07/01/12........................ 840,000 957,600 8.500% 04/15/06........................ 3,965,000 4,440,800 8.750% 04/15/11........................ 15,585,000 18,468,225 ------------- 30,304,125 ------------- SERVICES (4.5%) Corrections Corp. of America, 7.500% 05/01/11........................ 12,150,000 12,696,750 Iron Mountain, Inc.: 7.750% 01/15/15........................ 6,875,000 7,270,312 8.250% 07/01/11........................ 1,120,000 1,198,400 8.625% 04/01/13........................ 22,675,000 24,262,250 United Rentals, Inc., Series B: 8.800% 08/15/08........................ 8,175,000 7,929,750 9.250% 01/15/09........................ 7,495,000 7,382,575 9.500% 06/01/08........................ 3,700,000 3,718,500 10.750% 04/15/08....................... 1,000,000 1,092,500 Universal Compression, Inc., 7.250% 05/15/10 (a).................... 3,975,000 4,114,125 ------------- 69,665,162 ------------- SHIPPING (0.7%) Teekay Shipping Corp., 8.875% 07/15/11........................ 10,555,000 11,570,919 ------------- SUPERMARKETS (1.5%) Winn-Dixie Stores, Inc., 8.875% 04/01/08........................ 21,875,000 23,187,500 ------------- TELECOMMUNICATIONS (1.5%) Nextel Communications, Inc.: 9.750% 10/31/07........................ 7,000,000 7,245,000 9.950% 02/15/08........................ 2,000,000 2,090,000 10.650% 09/15/07....................... 13,175,000 13,603,187 ------------- 22,938,187 ------------- TRANSPORTATION (1.4%) Offshore Logistics, Inc., 6.125% 06/15/13 (a).................... 20,800,000 20,852,000 ------------- Total Corporate Notes & Bonds (Cost of $1,334,080,910)............. 1,387,073,136 ------------- See Accompanying Notes to Financial Statements 127 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA HIGH YIELD FUND (CONT.) JUNE 30, 2003 (UNAUDITED) PAR VALUE ------------ ------------- SHORT-TERM OBLIGATION (8.1%) Repurchase agreement with State Street Bank & Trust Co., dated 06/30/03, due 07/01/03 at 0.950%, collateralized by U.S. Treasury Bonds with maturities to 11/15/08, market value of $126,308,645 (repurchase proceeds $123,831,268) (Cost of $123,828,000)...............$123,828,000 $ 123,828,000 ------------- TOTAL INVESTMENTS (98.5%) (Cost of $1,457,908,910) (b)......... 1,510,901,136 ------------- OTHER ASSETS & LIABILITIES, NET (1.5%)..... 23,296,438 ------------- NET ASSETS (100.0%)........................ $1,534,197,574 ============== 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 June 30, 2003, the value of these securities amounted to $296,408,589, which represents 19.3% of net assets. (b) Cost for federal income tax purposes is $1,460,765,557. COLUMBIA DAILY INCOME COMPANY JUNE 30, 2003 (UNAUDITED) PAR VALUE ----------- ------------- U.S. GOVERNMENT AGENCIES (24.9%) Federal National Mortgage Association (FNMA): 1.090% 08/27/03 (a).................. $13,000,000 $ 12,977,564 1.145% 08/13/03 (a).................. 15,000,000 14,979,485 1.160% 07/09/03 (a).................. 16,200,000 16,195,824 1.175% 07/13/03 (a).................. 9,600,000 9,590,600 4.750% 11/14/03...................... 5,958,000 6,035,450 Federal Home Loan Bank (FHLB): 1.150% 07/25/03 (a).................. 10,000,000 9,992,333 1.150% 09/24/03 (a).................. 11,500,000 11,468,774 1.160% 07/18/03 (a).................. 20,000,000 19,989,045 2.500% 11/14/03...................... 4,800,000 4,822,198 3.125% 11/14/03...................... 6,010,000 6,051,604 6.875% 08/15/03...................... 20,000,000 20,139,057 Federal Home Loan Mortgage Corp. (FHLMC): 1.190% 07/17/03 (a).................. 11,900,000 11,893,706 1.400% 08/21/03 (a).................. 10,000,000 9,983,850 6.375% 11/15/03...................... 3,529,000 3,598,089 PAR VALUE ----------- ------------- Student Loan Marketing Association (SLMA): 0.890% 08/21/03...................... $40,000,000 $ 40,000,000 0.900% 11/20/03...................... 26,500,000 26,499,813 ------------- Total U.S. Government Agencies (Cost of $224,217,392)............... 224,217,392 ------------- COMMERCIAL PAPER (75.5%) Abbey National North America LLC: 1.010% 09/05/03...................... 6,000,000 5,988,890 1.190% 08/19/03...................... 12,300,000 12,280,077 Alabama Power Co., 1.240% 07/10/03...................... 12,000,000 11,996,280 American Express Credit, 1.010% 09/30/03...................... 18,000,000 17,954,045 American General Finance Corp.: 1.010% 09/25/03...................... 13,500,000 13,467,428 1.200% 07/17/03...................... 9,000,000 8,995,200 American Honda Finance: 1.160% 07/07/03...................... 7,000,000 6,998,647 1.220% 07/11/03...................... 6,700,000 6,697,730 Archer Daniels Midland Co.: 1.220% 07/02/03...................... 3,000,000 2,999,898 1.230% 07/02/03...................... 22,000,000 21,999,248 Banc One Corp., 1.200% 08/04/03...................... 20,000,000 19,977,333 Barclays U.S. Funding Corp.: 0.970% 08/27/03...................... 6,500,000 6,490,017 1.000% 08/27/03...................... 3,400,000 3,394,617 1.210% 08/01/03...................... 3,000,000 2,996,874 BellSouth Corp.: 0.950% 07/23/03...................... 8,455,000 8,450,091 1.020% 07/03/03...................... 5,600,000 5,599,683 Brown-Forman Corp., 0.960% 07/11/03...................... 13,200,000 13,196,480 Caterpillar Financial Services Corp.: 0.930% 07/28/03...................... 3,600,000 3,597,489 0.980% 07/28/03...................... 10,000,000 9,992,650 Chevron UK Investment PLC: 0.910% 09/18/03 (a).................. 6,500,000 6,487,020 1.190% 07/10/03 (a).................. 9,000,000 8,997,323 1.210% 07/21/03...................... 9,500,000 9,493,614 Citicorp: 1.190% 08/07/03...................... 11,000,000 10,986,546 1.220% 07/11/03...................... 14,000,000 13,995,256 Clorox Corp., 0.980% 09/11/03...................... 13,000,000 12,974,520 Coca-Cola Co.: 0.880% 09/09/03...................... 10,000,000 9,982,889 0.900% 08/15/03...................... 13,000,000 12,985,375 See Accompanying Notes to Financial Statements 128 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- PAR VALUE ----------- ------------- E.I. Du Pont de Nemours & Co.: 0.920% 08/08/03...................... $ 4,500,000 $ 4,495,630 1.010% 08/20/03...................... 5,000,000 4,992,986 1.190% 07/22/03...................... 8,700,000 8,693,961 General Electric Capital Corp.: 0.900% 07/15/03...................... 9,700,000 9,696,605 1.220% 09/10/03...................... 14,000,000 13,966,315 GlaxoSmithKline PLC, 1.190% 08/19/03...................... 24,500,000 24,460,317 Goldman Sachs Group, Inc.: 0.970% 08/20/03 (a).................. 5,500,000 5,492,590 1.260% 07/07/03...................... 13,000,000 12,997,270 Grainger (W.W.), Inc., 0.910% 07/25/03...................... 18,000,000 17,989,080 Household Finance Corp., 1.200% 09/02/03...................... 9,000,000 8,981,100 International Business Machines Corp., 1.200% 07/08/03...................... 20,000,000 19,995,333 J.P. Morgan Chase & Co.: 1.190% 07/24/03...................... 10,000,000 9,992,397 1.200% 08/12/03...................... 10,000,000 9,986,000 Johnson & Johnson, Inc., 1.200% 08/04/03...................... 10,000,000 9,988,667 Lubrizol Corp., 1.180% 09/15/03...................... 5,300,000 5,286,797 McGraw-Hill, Inc.: 1.150% 09/17/03...................... 14,000,000 13,965,117 1.180% 08/12/03...................... 5,500,000 5,492,428 Merck & Co., Inc.: 1.100% 07/11/03...................... 4,500,000 4,498,625 1.200% 08/06/03...................... 5,800,000 5,793,040 1.210% 08/14/03...................... 12,800,000 12,781,070 Nestle Capital Corp.: 1.190% 07/31/03 (a).................. 6,000,000 5,994,050 1.190% 08/07/03 (a).................. 13,300,000 13,283,733 PACCAR Financial Corp., 1.210% 07/24/03...................... 15,200,000 15,188,250 Prudential Funding Corp., 1.200% 08/11/03...................... 15,000,000 14,979,500 Pzifer, Inc.: 0.910% 08/11/03...................... 4,500,000 4,495,336 1.000% 07/30/03...................... 11,100,000 11,091,058 1.110% 07/22/03...................... 6,300,000 6,295,921 Royal Bank of Scotland PLC, 1.030% 08/13/03...................... 19,000,000 18,976,625 San Paolo U.S. Finance Co., 1.070% 09/12/03...................... 18,000,000 17,960,945 Schering-Plough Corp., 1.210% 08/08/03...................... 18,600,000 18,576,244 PAR VALUE ----------- ------------- Shell Finance: 1.200% 07/14/03......................$ 15,000,000 $ 14,993,500 1.200% 08/28/03...................... 6,500,000 6,487,433 Societe Generale of North America, Inc.: 1.210% 07/01/03...................... 2,600,000 2,600,000 1.240% 07/01/03...................... 17,400,000 17,400,000 UBS Finance, Inc., 1.310% 07/01/03...................... 13,600,000 13,600,000 Verizon Network Funding Corp., 1.190% 07/29/03...................... 14,000,000 13,987,042 Washington Post Co., 1.200% 07/29/03...................... 4,000,000 3,996,267 ------------- Total Commercial Paper (Cost of $678,426,452)............... 678,426,452 ------------- TOTAL INVESTMENTS (100.4%) (Cost of $902,643,844) (b)........... 902,643,844 ------------- OTHER ASSETS & LIABILITIES, NET (-0.4%).... (3,933,087) ------------- NET ASSETS (100.0%)........................ $ 898,710,757 ============= 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 June 30, 2003. (b) Cost for both financial statement and federal income tax purposes is the same. See Accompanying Notes to Financial Statements 129 STATEMENTS OF ASSETS AND LIABILITIES - -------------------------------------------------------------------------------- COLUMBIA FUNDS JUNE 30, 2003 (UNAUDITED)
COMMON INTERNATIONAL STOCK GROWTH STOCK SPECIAL SMALL CAP FUND FUND FUND FUND FUND ------------ -------------- ------------ -------------- ------------ ASSETS: Investments, at identified cost (including short-term obligations) .................. $370,449,689 $ 733,871,523 $224,122,602 $ 810,088,125 $454,861,002 ============ ============== ============ ============== ============ Investments, at value................................. $412,798,832 $ 871,964,232 $226,577,641 $ 924,870,157 $540,385,537 Repurchase agreement.................................. 17,175,000 13,171,000 15,216,000 32,690,000 18,420,000 ------------ -------------- ------------ -------------- ------------ Total investments, at value......................... $429,973,832 $ 885,135,232 $241,793,641 $ 957,560,157 $558,805,537 Cash.................................................. 276 107 532 574 484 Foreign currency (cost of $520,184)................... -- -- 518,637 -- -- Receivable for: Investments sold.................................... 7,000,123 20,359,130 189,539 16,612,357 5,730,038 Capital stock sold.................................. 388,652 603,126 749,190 536,307 1,924,924 Interest............................................ 586 348 402 862 486 Dividends........................................... 484,858 490,315 701,124 104,568 30,129 Expense reimbursement due from Advisor................ -- 12,384 -- -- -- Prepaid expense....................................... 45,998 -- 16,011 65,216 4,229 Deferred Trustees' compensation plan.................. -- -- 5,892 -- -- Other assets.......................................... -- -- 99,608 -- -- ------------ -------------- ------------ -------------- ------------ Total assets.......................................... 437,894,325 906,600,642 244,074,576 974,880,041 566,495,827 ------------ -------------- ------------ -------------- ------------ LIABILITIES: Expense reimbursement due to Advisor.................. -- -- -- -- -- Payable for: Investments purchased on a delayed delivery basis... -- -- -- -- -- Investments purchased............................... 10,064,034 17,875,111 6,312,047 9,816,963 4,201,363 Capital stock redeemed.............................. 971,117 860,546 139,115 2,110,673 2,942,672 Distributions....................................... -- -- -- -- -- Investment management fee........................... 213,930 438,402 182,196 685,920 462,663 Transfer agent fee.................................. 125,899 2,786 -- 81,806 69,793 Pricing and bookkeeping fees........................ 3,970 7,269 3,978 -- 2,391 Expenses received at merger......................... -- 78,683 -- 67,807 -- Directors' fees..................................... 1,063 6,717 -- 1,379 -- Distribution and services fees...................... 122 -- -- -- -- Custody fee......................................... 8,634 8,262 6,203 2,072 45,121 Reports to shareholders............................. 83,235 187,045 43,594 79,195 38,607 Deferred Trustees' fees............................... -- -- 5,892 -- -- Foreign capital gains tax payable..................... -- -- 239,004 -- -- Other liabilities..................................... 11,448 6,047 -- 31,997 37,261 ------------ -------------- ------------ -------------- ------------ Total liabilities..................................... 11,483,452 19,470,868 6,932,029 12,877,812 7,799,871 ------------ -------------- ------------ -------------- ------------ NET ASSETS.............................................. $426,410,873 $ 887,129,774 $237,142,547 $ 962,002,229 $558,695,956 ============ ============== ============ ============== ============ NET ASSETS consist of: Paid-in capital....................................... $520,095,433 $1,216,005,239 $283,686,860 $1,104,270,614 $679,471,280 Undistributed (overdistributed) net investment income (loss) 1,259,809 342,923 1,468,323 (3,402,397) (2,465,982) Accumulated net realized gain (loss).................. (154,468,512) (480,482,097) (65,755,309) (286,338,020) (222,253,877) Unrealized appreciation (depreciation) on: Investments......................................... 59,524,143 151,263,709 17,671,039 147,472,032 103,944,535 Foreign currency translations....................... -- -- 71,634 -- -- ------------ -------------- ------------ -------------- ------------ NET ASSETS.............................................. $426,410,873 $ 887,129,774 $237,142,547 $ 962,002,229 $558,695,956 ============ ============== ============ ============== ============
REAL ESTATE STRATEGIC SHORT TERM EQUITY TECHNOLOGY VALUE BALANCED BOND FUND FUND FUND FUND FUND ------------ ----------- ------------ ----------- ----------- ASSETS: Investments, at identified cost (including short-term obligations) .................. $693,642,786 $13,213,788 $237,288,084 $600,341,598 $615,232,343 ============ =========== ============ ============ ============ Investments, at value................................. $775,871,977 $14,705,465 $221,910,526 $627,566,134 $516,269,591 Repurchase agreement.................................. 51,256,000 169,000 43,579,000 41,053,000 105,984,000 ------------ ----------- ------------ ------------ ------------ Total investments, at value......................... $827,127,977 $14,874,465 $265,489,526 $668,619,134 $622,253,591 Cash.................................................. 625,573 13,057 254 143,532 11,287,557 Foreign currency (cost of $520,184)................... -- -- -- -- -- Receivable for: Investments sold.................................... 2,624,448 2,114,503 1,359,539 8,806,876 7,576,574 Capital stock sold.................................. 3,102,917 129,086 172,056 600,942 5,049,549 Interest............................................ 1,353 4 1,150 2,372,406 3,406,744 Dividends........................................... 2,563,814 1,595 270,761 471,552 -- Expense reimbursement due from Advisor................ -- 63,987 18,418 -- -- Prepaid expense....................................... 22,289 47,766 1,504 46,568 83,352 Deferred Trustees' compensation plan.................. -- -- 8,492 -- -- Other assets.......................................... 671 8,294 -- 26,440 76,265 ------------ ----------- ------------ ------------ ------------ Total assets.......................................... 836,069,042 17,252,757 267,321,700 681,087,450 649,733,632 ------------ ----------- ------------ ------------ ------------ LIABILITIES: Expense reimbursement due to Advisor.................. -- -- -- -- 4,052 Payable for: Investments purchased on a delayed delivery basis... -- -- -- 20,899,617 69,769,395 Investments purchased............................... 625,000 2,332,481 1,160,864 11,655,768 21,106,626 Capital stock redeemed.............................. 1,791,551 189,805 734,071 841,258 1,145,652 Distributions....................................... 16,220 -- -- 43,639 486,921 Investment management fee........................... 509,011 11,675 167,422 272,105 209,502 Transfer agent fee.................................. 107,302 -- 8,599 -- -- Pricing and bookkeeping fees........................ -- 1,449 325 7,970 11,630 Expenses received at merger......................... -- -- 13,612 -- 45,444 Directors' fees..................................... -- -- -- 1,988 14,736 Distribution and services fees...................... 1,982 300 1,219 743 10,068 Custody fee......................................... 3,567 2,541 5,818 7,623 -- Reports to shareholders............................. 37,131 9,737 7,063 79,867 8,523 Deferred Trustees' fees............................... -- -- 8,492 -- -- Foreign capital gains tax payable..................... -- -- -- -- -- Other liabilities..................................... 22,776 -- 13,017 -- -- ------------ ----------- ------------ ------------ ------------ Total liabilities..................................... 3,114,540 2,547,988 2,120,502 33,810,578 92,812,549 ------------ ----------- ------------ ------------ ------------ NET ASSETS.............................................. $832,954,502 $14,704,769 $265,201,198 $647,276,872 $556,921,083 ============ =========== ============ ============ ============ NET ASSETS consist of: Paid-in capital....................................... $712,592,675 $20,414,639 $271,038,797 $735,768,434 $549,676,769 Undistributed (overdistributed) net investment income (loss) 7,504,375 (66,359) 1,255,019 (340,280) (397,994) Accumulated net realized gain (loss).................. (20,627,739) (7,304,188) (35,294,059) (156,428,818) 621,060 Unrealized appreciation (depreciation) on: Investments......................................... 133,485,191 1,660,677 28,201,442 68,277,536 7,021,248 Foreign currency translations....................... -- -- (1) -- -- ------------ ----------- ------------ ------------ ------------ NET ASSETS.............................................. $832,954,502 $14,704,769 $265,201,198 $647,276,872 $556,921,083 ============ =========== ============ ============ ============
NATIONAL OREGON FIXED INCOME MUNICIPAL MUNICIPAL DAILY SECURITIES BOND BOND HIGH YIELD INCOME FUND FUND FUND FUND COMPANY ------------ ----------- ------------ -------------- ------------ ASSETS: Investments, at identified cost (including short-term obligations) .................. $612,878,297 $15,812,059 $489,221,234 $1,457,908,910 $902,643,844 ============ =========== ============ ============== ============ Investments, at value................................. $552,749,288 $16,877,979 $520,080,025 $1,387,073,136 $902,643,844 Repurchase agreement.................................. 85,324,000 -- -- 123,828,000 -- ------------ ----------- ------------ -------------- ------------ Total investments, at value......................... $638,073,288 $16,877,979 $520,080,025 $1,510,901,136 $902,643,844 Cash.................................................. 5,883,596 -- -- 6,576,090 76,204 Foreign currency (cost of $520,184)................... -- -- -- -- -- Receivable for: Investments sold.................................... 2,832,020 -- -- 10,046,288 -- Capital stock sold.................................. 1,053,807 271 3,653,513 11,229,957 1,859,516 Interest............................................ 5,557,403 224,706 6,412,565 24,863,827 827,490 Dividends........................................... -- -- -- -- -- Expense reimbursement due from Advisor................ -- 44,810 -- -- -- Prepaid expense....................................... 52,235 66,323 60,846 98,816 12,942 Deferred Trustees' compensation plan.................. -- -- -- -- -- Other assets.......................................... -- 99 -- 5,844 27,170 ------------ ----------- ------------ -------------- ------------ Total assets.......................................... 653,452,349 17,214,188 530,206,949 1,563,721,958 905,447,166 ------------ ----------- ------------ -------------- ------------ LIABILITIES: Expense reimbursement due to Advisor.................. -- -- -- -- -- Payable for: Investments purchased on a delayed delivery basis... 70,356,043 -- -- -- -- Investments purchased............................... 8,438,468 -- -- 24,093,222 -- Capital stock redeemed.............................. 2,373,355 14,867 144,708 2,270,963 6,044,804 Distributions....................................... 81,804 7,276 411,981 2,376,163 2,789 Investment management fee........................... 236,747 7,165 217,968 719,495 366,593 Transfer agent fee.................................. -- 3,071 27,237 -- 158,190 Pricing and bookkeeping fees........................ 4,491 642 1,026 -- -- Expenses received at merger......................... -- -- -- -- -- Directors' fees..................................... 9,410 3,950 -- -- 2,990 Distribution and services fees...................... 1,890 206 384 49,734 -- Custody fee......................................... 4,038 -- 299 32 42,025 Reports to shareholders............................. 18,513 -- 9,844 14,775 93,455 Deferred Trustees' fees............................... -- -- -- -- -- Foreign capital gains tax payable..................... -- -- -- -- -- Other liabilities..................................... 45,985 8,213 14,799 -- 25,563 ------------ ----------- ------------ -------------- ------------ Total liabilities..................................... 81,570,744 45,390 828,246 29,524,384 6,736,409 ------------ ----------- ------------ -------------- ------------ NET ASSETS.............................................. $571,881,605 $17,168,798 $529,378,703 $1,534,197,574 $898,710,757 ============ =========== ============ ============== ============ NET ASSETS consist of: Paid-in capital....................................... $550,787,823 $16,020,501 $495,707,341 $1,521,192,161 $898,840,027 Undistributed (overdistributed) net investment income (loss) (1,429,580) 5,538 149,364 (3,322,607) (129,270) Accumulated net realized gain (loss).................. (2,671,629) 76,839 2,663,207 (36,664,206) -- Unrealized appreciation (depreciation) on: Investments......................................... 25,194,991 1,065,920 30,858,791 52,992,226 -- Foreign currency translations....................... -- -- -- -- -- ------------ ----------- ------------ -------------- ------------ NET ASSETS.............................................. $571,881,605 $17,168,798 $529,378,703 $1,534,197,574 $898,710,757 ============ =========== ============ ============== ============
See Accompanying Notes to Financial Statements 130-131 Spread STATEMENTS OF ASSETS AND LIABILITIES - -------------------------------------------------------------------------------- COLUMBIA FUNDS JUNE 30, 2003 (UNAUDITED)
COMMON INTERNATIONAL STOCK GROWTH STOCK SPECIAL SMALL CAP FUND FUND FUND FUND FUND ------------ ------------ ------------- ------------ ------------ NET ASSETS: Class A Shares....................................... $ 197,137 $ 4,063,317 $ 20,615,862 $ 3,279,022 -- ============ ============ ============= ============ ============ Class B Shares....................................... $ 421,356 $641,146 $ 10,062,886 $ 3,960,369 -- ============ ============ ============= ============ ============ Class D Shares....................................... $ 106,958 $202,747 $ 564,384 $ 676,749 -- ============ ============ ============= ============ ============ Class G Shares....................................... -- $ 14,320,175 -- $ 760,317 -- ============ ============ ============= ============ ============ Class T Shares....................................... -- -- -- $ 28,360,450 -- ============ ============ ============= ============ ============ Class Z Shares....................................... $425,685,422 $867,902,389 $ 205,899,415 $924,965,322 $558,695,956 ============ ============ ============= ============ ============ SHARES OUTSTANDING: Class A Shares....................................... 12,038 173,146 1,911,788 194,842 -- ============ ============ ============= ============ ============ Class B Shares....................................... 25,835 27,428 940,882 236,355 -- ============ ============ ============= ============ ============ Class D Shares....................................... 6,559 8,675 52,619 40,406 -- ============ ============ ============= ============ ============ Class G Shares....................................... -- 612,496 -- 45,380 -- ============ ============ ============= ============ ============ Class T Shares ...................................... -- -- -- 1,681,753 -- ============ ============ ============= ============ ============ Class Z Shares....................................... 25,943,041 36,871,077 19,013,113 54,755,084 28,302,525 ============ ============ ============= ============ ============ CLASS A SHARES: Net asset value per share (a)........................ $ 16.38 $ 23.47 $10.78 $ 16.83 -- ============ ============ ============= ============ ============ Maximum sales charge................................. 5.75% 5.75% 5.75% 5.75% -- ============ ============ ============= ============ ============ Maximum offering price per share (b) ................ $ 17.38 $ 24.90 $11.44 $ 17.86 -- ============ ============ ============= ============ ============ CLASS B SHARES: Net asset value and offering price per share (a)..... $ 16.31 $ 23.38 $10.70 $ 16.76 -- ============ ============ ============= ============ ============ CLASS D SHARES: Net asset value per share (a)........................ $ 16.31 $ 23.37 $10.73 $ 16.75 -- ============ ============ ============= ============ ============ Maximum sales charge................................. 1.00% 1.00% 1.00% 1.00% -- ============ ============ ============= ============ ============ Maximum offering price per share (b)................. $ 16.47 $ 23.61 $ 10.84 $ 16.92 -- ============ ============ ============= ============ ============ CLASS G SHARES: Net asset value and offering price per share (a)..... -- $ 23.38 -- $ 16.75 -- ============ ============ ============= ============ ============ CLASS T SHARES: Net asset value per share (a)........................ -- -- -- $ 16.86 -- ============ ============ ============= ============ ============ Maximum sales charge................................. -- -- -- 5.75% -- ============ ============ ============= ============ ============ Maximum offering price per share (b)................. -- -- -- $ 17.89 -- ============ ============ ============= ============ ============ CLASS Z SHARES: Net asset value, offering and redemption price per share.............................................. $ 16.41 $ 23.54 $ 10.83 $ 16.89 $ 19.74 ============ ============ ============= ============ ============
REAL ESTATE STRATEGIC SHORT TERM EQUITY TECHNOLOGY VALUE BALANCED BOND FUND FUND FUND FUND FUND ------------ ------------ ------------ ------------ ------------ NET ASSETS: Class A Shares....................................... $ 7,901,691 $ 256,144 $ 56,754,495 $ 419,621 $ 37,617,346 ============ ============ ============ ============ ============ Class B Shares....................................... $ 3,810,235 $ 995,599 $ 2,875,645 $ 2,608,006 $ 26,523,885 ============ ============ ============ ============ ============ Class D Shares....................................... $ 2,632,519 $ 10,283 $ 695,933 $ 673,853 $ 17,379,364 ============ ============ ============ ============ ============ Class G Shares....................................... -- -- -- -- $ 1,751,127 ============ ============ ============ ============ ============ Class T Shares....................................... -- -- -- -- $ 29,250,229 ============ ============ ============ ============ ============ Class Z Shares....................................... $818,610,057 $13,442,743 $204,875,125 $643,575,392 $444,399,132 ============ ============ ============ ============ ============ SHARES OUTSTANDING: Class A Shares....................................... 401,980 51,335 3,804,866 22,419 4,295,059 ============ ============ ============ ============ ============ Class B Shares....................................... 193,591 200,994 194,031 139,326 3,029,517 ============ ============ ============ ============ ============ Class D Shares....................................... 133,765 2,063 46,983 36,003 1,984,610 ============ ============ ============ ============ ============ Class G Shares....................................... -- -- -- -- 199,920 ============ ============ ============ ============ ============ Class T Shares....................................... -- -- -- -- 3,339,746 ============ ============ ============ ============ ============ Class Z Shares....................................... 41,623,117 2,683,050 13,709,344 34,393,290 50,740,797 ============ ============ ============ ============ ============ CLASS A SHARES: Net asset value per share (a)........................ $ 19.66 $ 4.99 $ 14.92 $ 18.72 $ 8.76 ============ ============ ============ ============ ============ Maximum sales charge................................. 5.75% 5.75% 5.75% 5.75% 4.75% ============ ============ ============ ============ ============ Maximum offering price per share (b)................. $ 20.86 $ 5.29 $ 15.83 $ 19.86 $ 9.20 ============ ============ ============ ============ ============ CLASS B SHARES: Net asset value and offering price per share (a)..... $ 19.68 $ 4.95 $ 14.82 $ 18.72 $ 8.76 ============ ============ ============ ============ ============ CLASS D SHARES: Net asset value per share (a)........................ $ 19.68 $ 4.98 $ 14.81 $ 18.72 $ 8.76 ============ ============ ============ ============ ============ Maximum sales charge................................. 1.00% 1.00% 1.00% 1.00% 1.00% ============ ============ ============ ============ ============ Maximum offering price per share (b)................. $ 19.88 $ 5.03 $ 14.96 $ 18.91 $ 8.85 ============ ============ ============ ============ ============ CLASS G SHARES: Net asset value and offering price per share (a)..... -- -- -- -- $ 8.76 ============ ============ ============ ============ ============ CLASS T SHARES: Net asset value per share (a)........................ -- -- -- -- $ 8.76 ============ ============ ============ ============ ============ Maximum sales charge................................. -- -- -- -- 4.75% ============ ============ ============ ============ ============ Maximum offering price per share (b)................. -- -- -- -- $ 9.20 ============ ============ ============ ============ ============ CLASS Z SHARES: Net asset value, offering and redemption price per share............................................... $ 19.67 $ 5.01 $ 14.94 $ 18.71 $ 8.76 ============ ============ ============ ============ ============
NATIONAL FIXED INCOME MUNICIPAL OREGON HIGH DAILY SECURITIES BOND BOND YIELD INCOME FUND FUND FUND FUND COMPANY ------------ ------------ ------------ -------------- ------------ NET ASSETS: Class A Shares....................................... $ 6,189,424 $ 380,106 $ 1,456,949 $ 159,929,631 -- ============ ============ ============ ============== ============ Class B Shares....................................... $ 4,339,434 $ 592,365 $ 897,699 $ 83,756,849 -- ============ ============ ============ ============== ============ Class D Shares....................................... $ 2,855,095 $ 402,944 $ 807,001 $ 99,403,279 -- ============ ============ ============ ============== ============ Class G Shares....................................... -- -- -- -- -- ============ ============ ============ ============== ============ Class T Shares....................................... -- -- -- -- -- ============ ============ ============ ============== ============ Class Z Shares....................................... $558,497,652 $ 15,793,383 $526,217,054 $1,191,107,815 $898,710,757 ============ ============ ============ ============== ============ SHARES OUTSTANDING: Class A Shares....................................... 449,684 36,219 114,650 18,399,688 -- ============ ============ ============ ============== ============ Class B Shares....................................... 315,270 56,444 70,640 9,636,114 -- ============ ============ ============ ============== ============ Class D Shares....................................... 207,433 38,395 63,500 11,435,956 -- ============ ============ ============ ============== ============ Class G Shares....................................... -- -- -- -- -- ============ ============ ============ ============== ============ Class T Shares....................................... -- -- -- -- -- ============ ============ ============ ============== ============ Class Z Shares....................................... 40,585,356 1,504,957 41,410,081 137,06 1,348 898,840,027 ============ ============ ============ ============== ============ CLASS A SHARES: Net asset value per share (a)........................ $ 13.76 $ 10.49 $ 12.71 $ 8.69 -- ============ ============ ============ ============== ============ Maximum sales charge................................. 4.75% 4.75% 4.75% 4.75% -- ============ ============ ============ ============== ============ Maximum offering price per share (b)................. $ 14.45 $ 11.01 $ 13.34 $ 9.12 -- ============ ============ ============ ============== ============ CLASS B SHARES: Net asset value and offering price per share (a)..... $ 13.76 $ 10.49 $ 12.71 $ 8.69 -- ============ ============ ============ ============== ============ CLASS D SHARES: Net asset value per share (a)........................ $ 13.76 $ 10.49 $ 12.71 $ 8.69 -- ============ ============ ============ ============== ============ Maximum sales charge................................. 1.00% 1.00% 1.00% 1.00% -- ============ ============ ============ ============== ============ Maximum offering price per share (b)................. $ 13.90 $ 10.60 $ 12.84 $ 8.78 -- ============ ============ ============ ============== ============ CLASS G SHARES: Net asset value and offering price per share (a)..... -- -- -- -- -- ============ ============ ============ ============== ============ CLASS T SHARES: Net asset value per share (a)........................ -- -- -- -- -- ============ ============ ============ ============== ============ Maximum sales charge................................. -- -- -- -- -- ============ ============ ============ ============== ============ Maximum offering price per share (b)................. -- -- -- -- -- ============ ============ ============ ============== ============ CLASS Z SHARES: Net asset value, offering and redemption price per share............................................... $ 13.76 $ 10.49 $ 12.71 $ 8.69 $ 1.00 ============ ============ ============ ============== ============
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. (b) On sales of $50,000 or more the offering price is reduced. See Accompanying Notes to Financial Statements 132-133 Spread STATEMENTS OF OPERATIONS - -------------------------------------------------------------------------------- COLUMBIA FUNDS FOR THE SIX MONTHS ENDED JUNE 30, 2003 (UNAUDITED)
INTER- COMMON NATIONAL STOCK GROWTH STOCK SPECIAL SMALL CAP FUND FUND FUND FUND FUND ------------ ------------ ------------ ----------- ----------- NET INVESTMENT INCOME: Income: Dividends......................................... $ 3,063,007 $ 3,870,379 $ 3,139,415 $ 303,361 $ 364,332 Interest.......................................... 59,477 53,256 57,395 983,115 99,873 Other............................................. 299 508 680 -- 1,265 Foreign withholding tax........................... (15,899) (18,524) (323,995) -- (3,998) ------------ ----------- ----------- ----------- ----------- Total income..................................... 3,106,884 3,905,619 2,873,495 1,286,476 461,472 ------------ ----------- ----------- ----------- ----------- Expenses: Investment management fee......................... 1,206,176 2,495,013 966,714 3,848,504 2,461,698 Distribution fee: Class A.......................................... 62 1,700 -- 930 -- Class B.......................................... 1,130 1,069 37,373 13,271 -- Class D.......................................... 166 559 1,997 1,977 -- Class G.......................................... -- 44,035 -- 2,330 -- Service fee: Class A.......................................... 154 4,404 24,205 2,310 -- Class B.......................................... 375 355 12,458 4,424 -- Class D.......................................... 55 186 666 659 -- Class G.......................................... -- 33,707 -- 1,792 -- Class T.......................................... -- -- -- 64,942 -- Transfer agent fee: Class A.......................................... 267 7,217 40,439 3,536 -- Class B.......................................... 966 383 44,205 8,852 -- Class D.......................................... 183 276 2,725 1,005 -- Class G.......................................... -- 24,992 -- 1,970 -- Class T.......................................... -- -- -- 24,350 -- Class Z.......................................... 459,586 659,223 207,225 689,342 484,341 Pricing and bookkeeping fees...................... 20,831 35,905 14,032 34,610 23,186 Directors' fees................................... 7,412 4,787 7,421 9,039 8,032 Custody fee....................................... 13,785 18,799 50,607 15,203 31,546 Audit fee......................................... 13,789 14,470 20,553 16,482 14,673 Registration fee.................................. 61,806 73,997 30,896 85,254 35,011 Other expenses.................................... 60,395 157,408 35,052 92,313 50,810 ------------ ----------- ----------- ----------- ----------- Total Expenses................................... 1,847,138 3,578,485 1,496,568 4,923,095 3,109,297 Expenses reimbursed by Advisor.................... -- -- -- -- -- Fees waived by Distributor: Class A.......................................... (62) (1,700) -- (930) -- Class D.......................................... -- -- -- -- -- Class G.......................................... -- (13,500) -- (717) -- Class T.......................................... -- -- -- (25,977) -- Fees waived by Advisor: Class A.......................................... -- -- -- (80) -- Class B.......................................... -- -- (5,481) (2,105) -- Class D.......................................... -- -- (1,997) (234) -- Class Z.......................................... -- -- (98,088) (207,091) -- Custody earnings credit........................... (1) (589) (235) (498) (846) ------------ ----------- ----------- ----------- ----------- Net Expenses...................................... 1,847,075 3,562,696 1,390,767 4,685,463 3,108,451 ------------ ----------- ----------- ----------- ----------- Net Investment Income (Loss)........................ 1,259,809 342,923 1,482,728 (3,398,987) (2,646,979) ------------ ----------- ----------- ----------- -----------
REAL ESTATE STRATEGIC SHORT TERM EQUITY TECHNOLOGY VALUE BALANCED BOND FUND FUND FUND FUND FUND ------------ ---------- ----------- ----------- ------------ NET INVESTMENT INCOME: Income: Dividends......................................... $ 17,582,327 $ 15,860 $ 2,473,663 $ 2,945,857 $ -- Interest.......................................... 236,831 2,752 134,052 6,227,169 7,320,961 Other............................................. -- -- 420 81,142 -- Foreign withholding tax........................... -- (103) (98,645) (15,372) -- ------------ ---------- ----------- ----------- ------------ Total income..................................... 17,819,158 18,509 2,509,490 9,238,796 7,320,961 ------------ ---------- ----------- ----------- ------------ Expenses: Investment management fee......................... 2,929,913 50,596 928,142 1,584,122 1,147,978 Distribution fee: Class A.......................................... 1,832 52 -- 161 10,159 Class B.......................................... 9,257 643 9,440 6,006 67,478 Class D.......................................... 5,546 29 1,575 1,970 42,477 Class G.......................................... -- -- -- -- 6,104 Service fee: Class A.......................................... 4,532 130 65,522 401 25,177 Class B.......................................... 3,059 214 3,146 1,997 22,340 Class D.......................................... 1,822 10 525 657 14,058 Class G.......................................... -- -- -- -- 4,696 Class T.......................................... -- -- -- -- 74,237 Transfer agent fee: Class A.......................................... 10,533 622 32,555 900 21,701 Class B.......................................... 7,888 1,716 6,617 4,490 18,338 Class D.......................................... 4,282 60 1,128 731 13,238 Class G.......................................... -- -- -- -- 1,819 Class T.......................................... -- -- -- -- 18,376 Class Z.......................................... 943,099 45,963 176,390 431,792 64,903 Pricing and bookkeeping fees...................... 31,172 12,245 16,737 31,791 30,261 Directors' fees................................... 9,929 2,018 4,351 10,326 2,912 Custody fee....................................... 11,134 6,090 21,564 23,724 8,698 Audit fee......................................... 12,106 12,227 13,887 15,702 12,509 Registration fee.................................. 81,382 54,642 33,825 60,137 86,284 Other expenses.................................... 98,652 8,942 36,145 82,213 61,520 ------------ ---------- ----------- ----------- ------------ Total Expenses................................... 4,166,138 196,199 1,351,549 2,257,120 1,755,263 Expenses reimbursed by Advisor.................... -- (111,256) -- -- (22,273) Fees waived by Distributor: Class A.......................................... (1,832) (52) -- (161) (10,159) Class D.......................................... -- -- -- -- (33,740) Class G.......................................... -- -- -- -- (3,287) Class T.......................................... -- -- -- -- (51,966) Fees waived by Advisor: Class A.......................................... -- -- -- -- -- Class B.......................................... -- -- (2,890) -- -- Class D.......................................... -- -- (314) -- -- Class Z.......................................... -- -- (28,822) -- -- Custody earnings credit........................... (34) (23) (2,714) (1,559) (2,905) ------------ ---------- ----------- ----------- ------------ Net Expenses...................................... 4,164,272 84,868 1,316,809 2,255,400 1,630,933 ------------ ---------- ----------- ----------- ------------ Net Investment Income (Loss)........................ 13,654,886 (66,359) 1,192,681 6,983,396 5,690,028 ------------ ---------- ----------- ----------- ------------
FIXED NATIONAL OREGON INCOME MUNICIPAL MUNICIPAL DAILY SECURITIES BOND BOND HIGH YIELD INCOME FUND FUND FUND FUND COMPANY ----------- ----------- ----------- ----------- ----------- NET INVESTMENT INCOME: Income: Dividends......................................... $ -- $ 264 $ -- $ -- $ -- Interest.......................................... 12,823,702 379,149 12,455,976 40,110,613 6,576,928 Other............................................. -- -- -- -- -- Foreign withholding tax........................... -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- Total income..................................... 12,823,702 379,413 12,455,976 40,110,613 6,576,928 ----------- ----------- ----------- ----------- ----------- Expenses: Investment management fee......................... 1,413,122 42,252 1,290,542 3,416,041 2,408,721 Distribution fee: Class A.......................................... 1,497 111 393 46,228 -- Class B.......................................... 12,129 1,277 2,522 188,975 -- Class D.......................................... 6,645 851 2,557 222,148 -- Class G.......................................... -- -- -- -- -- Service fee: Class A.......................................... 3,705 276 976 114,667 -- Class B.......................................... 4,026 423 841 62,571 -- Class D.......................................... 2,203 282 852 73,938 -- Class G.......................................... -- -- -- -- -- Class T.......................................... -- -- -- -- -- Transfer agent fee: Class A.......................................... 7,828 540 760 61,241 -- Class B.......................................... 7,480 899 689 64,418 -- Class D.......................................... 2,769 451 491 58,143 -- Class G.......................................... -- -- -- -- -- Class T.......................................... -- -- -- -- -- Class Z.......................................... 340,266 6,439 109,531 502,498 622,718 Pricing and bookkeeping fees...................... 28,066 17,617 22,094 35,133 38,705 Directors' fees................................... 7,024 2,526 8,159 6,043 15,572 Custody fee....................................... 12,103 1,724 10,128 12,006 42,698 Audit fee......................................... 15,415 12,947 16,357 14,909 13,695 Registration fee.................................. 82,279 64,860 68,692 139,371 43,145 Other expenses.................................... 60,595 5,541 22,738 55,576 58,248 ----------- ----------- ----------- ----------- ----------- Total Expenses................................... 2,007,152 159,016 1,558,322 5,073,906 3,243,502 Expenses reimbursed by Advisor.................... -- (101,174) -- -- -- Fees waived by Distributor: Class A.......................................... (1,497) (111) (393) (46,228) -- Class D.......................................... (1,322) (395) (1,193) (44,698) -- Class G.......................................... -- -- -- -- -- Class T.......................................... -- -- -- -- -- Fees waived by Advisor: Class A.......................................... -- -- -- -- -- Class B.......................................... -- -- -- -- -- Class D.......................................... -- -- -- -- -- Class Z.......................................... -- -- -- -- -- Custody earnings credit........................... (1,221) (47) (91) (5,397) (1,293) ----------- ----------- ----------- ----------- ----------- Net Expenses...................................... 2,003,112 57,289 1,556,645 4,977,583 3,242,209 ----------- ----------- ----------- ----------- ----------- Net Investment Income (Loss)........................ 10,820,590 322,124 10,899,331 35,133,030 3,334,719 ----------- ----------- ----------- ----------- -----------
See Accompanying Notes to Financial Statements 134-135 Spread STATEMENTS OF OPERATIONS - -------------------------------------------------------------------------------- COLUMBIA FUNDS For the six Months ended June 30, 2003 (Unaudited)
COMMON INTERNATIONAL STOCK GROWTH STOCK SPECIAL SMALL CAP FUND FUND FUND FUND FUND ------------ ------------ ------------- ------------ ------------ NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY: Net realized gain (loss) on: Investments ............................... $(16,517,359) $ (8,040,626) $ (6,784,057) $ (1,053,892) $ 16,623,634 Foreign currency transactions ............ -- -- 74,732 -- -- Foreign capital gains tax ................. -- -- (162,341) -- -- ------------ ------------ ------------- ------------ ------------ Net realized gain (loss) .............. (16,517,359) (8,040,626) (6,871,666) (1,053,892) 16,623,634 ------------ ------------ ------------- ------------ ------------ Change in net unrealized appreciation/ depreciation on: Investments ............................... 54,682,628 109,188,593 21,815,287 123,819,516 82,105,581 Foreign currency translations ............. -- -- 31,445 -- -- ------------ ------------ ------------- ------------ ------------ Net change in net unrealized appreciation/ depreciation 54,682,628 109,188,593 21,846,732 123,819,516 82,105,581 ------------ ------------ ------------- ------------ ------------ Net gain........................................... 38,165,269 101,147,967 14,975,066 122,765,624 98,729,215 ------------ ------------ ------------- ------------ ------------ NET INCREASE RESULTING FROM OPERATIONS ............ $ 39,425,078 $101,490,890 $ 16,457,794 $119,366,637 $ 96,082,236 ============ ============ ============= ============ ============
REAL ESTATE STRATEGIC SHORT TERM EQUITY TECHNOLOGY VALUE BALANCED BOND FUND FUND FUND FUND FUND ------------ ----------- ------------ ------------ ------------ NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY: Net realized gain (loss) on: Investments ............................... $ 3,650,915 $ 1,881,408 $ (4,005,778) $ (9,450,608) $ 4,014,692 Foreign currency transactions ............ -- -- 2,883 -- -- Foreign capital gains tax ................. -- -- -- -- -- ------------ ----------- ------------ ------------ ------------ Net realized gain (loss) .............. 3,650,915 1,881,408 (4,002,895) (9,450,608) 4,014,692 ------------ ----------- ------------ ------------ ------------ Change in net unrealized appreciation/ depreciation on: Investments ............................... 73,271,203 1,267,944 34,283,665 50,578,387 231,520 Foreign currency translations ............. -- -- 150 -- -- ------------ ----------- ------------ ------------ ------------ Net change in net unrealized appreciation/ depreciation 73,271,203 1,267,944 34,283,815 50,578,387 231,520 ------------ ----------- ------------ ------------ ------------ Net gain........................................... 76,922,118 3,149,352 30,280,920 41,127,779 4,246,212 ------------ ----------- ------------ ------------ ------------ NET INCREASE RESULTING FROM OPERATIONS ............ $ 90,577,004 $ 3,082,993 $ 31,473,601 $ 48,111,175 $ 9,936,240 ============ =========== ============ ============ ============
INCOME MUNICIPAL MUNICIPAL DAILY SECURITIES BOND BOND HIGH YIELD INCOME FUND FUND FUND FUND COMPANY ------------ ----------- ------------- ------------ ------------ NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY: Net realized gain (loss) on: Investments ............................... $ 9,277,815 $ 63,153 $ 2,376,789 $ 1,252,109 $ -- Foreign currency transactions ............ -- -- -- -- -- Foreign capital gains tax ................. -- -- -- -- -- ------------ ----------- ------------ ------------ ------------ Net realized gain (loss) .............. 9,277,815 63,153 2,376,789 1,252,109 -- ------------ ----------- ------------ ------------ ------------ Change in net unrealized appreciation/ depreciation on: Investments ............................... 1,115,454 310,467 6,347,297 43,832,599 -- Foreign currency translations ............. -- -- -- -- -- ------------ ----------- ------------ ------------ ------------ Net change in net unrealized appreciation/ depreciation 1,115,454 310,467 6,347,297 43,832,599 -- ------------ ----------- ------------ ------------ ------------ Net gain........................................... 10,393,269 373,620 8,724,086 45,084,708 -- ------------ ----------- ------------ ------------ ------------ NET INCREASE RESULTING FROM OPERATIONS ............ $ 21,213,859 $ 695,744 $ 19,623,417 $ 80,217,738 $ 3,334,719 ============ =========== ============ ============ ============
See Accompanying Notes to Financial Statements 136-137 Spread STATEMENTS OF CHANGES IN NET ASSETS - -------------------------------------------------------------------------------- COLUMBIA FUNDS
COMMON STOCK FUND GROWTH FUND ---------------------------- ---------------------------- (UNAUDITED) (UNAUDITED) SIX MONTHS YEAR SIX MONTHS YEAR ENDED ENDED ENDED ENDED JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, 2003 2002 (a) 2003 2002 (b) ----------- ------------- ------------ ------------- OPERATIONS: Net investment income (loss)....................... $ 1,259,809 $ 2,314,001 $ 342,923 $ (334,512) Net realized gain (loss) on investments, foreign currency transactions and foreign capital gains tax............................... (16,517,359) (76,671,127) (8,040,626) (234,361,212) Net change in unrealized appreciation/depreciation on investments and foreign currency translations. 54,682,628 (87,529,297) 109,188,593 (189,831,805) ------------ ------------- ------------ ------------- Net increase (decrease) resulting from operations.. 39,425,078 (161,886,423) 101,490,890 (424,527,529) ------------ ------------- ------------ ------------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income: Class A.......................................... -- (24) -- -- Class B.......................................... -- (365) -- -- Class D.......................................... -- (105) -- -- Class Z.......................................... -- (2,325,116) -- -- Return of capital: Class Z.......................................... -- -- -- -- ------------ ------------- ------------ ------------- Total distributions to shareholders................ -- (2,325,610) -- -- ------------ ------------- ------------ ------------- NET CAPITAL SHARE TRANSACTIONS....................... (29,823,581) (100,375,770) (43,008,230) (72,669,754) ------------ ------------- ------------ ------------- Net increase (decrease) in net assets................ 9,601,497 (264,587,803) 58,482,660 (497,197,283) NET ASSETS: Beginning of period................................ 416,809,376 681,397,179 828,647,114 1,325,844,397 ------------ ------------- ------------ ------------- End of period...................................... $426,410,873 $ 416,809,376 $887,129,774 $ 828,647,114 ============ ============= ============ ============= Undistributed (overdistributed) net investment income (loss) at end of period............................ $ 1,259,809 $ -- $ 342,923 $ -- ============ ============= ============ =============
INTERNATIONAL STOCK FUND SPECIAL FUND ---------------------------- ------------------------------ (UNAUDITED) (UNAUDITED) SIX MONTHS YEAR SIX MONTHS YEAR ENDED ENDED ENDED ENDED JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, 2003 2002 (a) 2003 2002 (c) ------------ ------------- ------------- ------------- OPERATIONS: Net investment income (loss)....................... $ 1,482,728 $ (60,403) $ (3,398,987) $ (5,336,228) Net realized gain (loss) on investments, foreign currency transactions and foreign capital gains tax............................... (6,871,666) (16,450,936) (1,053,892) (89,710,944) Net change in unrealized appreciation/depreciation on investments and foreign currency translations. 21,846,732 (5,145,567) 123,819,516 (104,900,709) ------------ ------------- ------------- ------------- Net increase (decrease) resulting from operations.. 16,457,794 (21,656,906) 119,366,637 (199,947,881) ------------ ------------- ------------- ------------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income: Class A.......................................... -- -- -- -- Class B.......................................... -- -- -- -- Class D.......................................... -- -- -- -- Class Z.......................................... -- (102,850) -- -- Return of capital: Class Z.......................................... -- (403,799) -- -- ------------ ------------- ------------- ------------- Total distributions to shareholders................ -- (506,649) -- -- ------------ ------------- ------------- ------------- NET CAPITAL SHARE TRANSACTIONS....................... 45,711,779 61,510,684 3,577,896 252,934,343 ------------ ------------- ------------- ------------- Net increase (decrease) in net assets................ 62,169,573 39,347,129 122,944,533 52,986,462 NET ASSETS: Beginning of period................................ 174,972,974 135,625,845 839,057,696 786,071,234 ------------ ------------- ------------- ------------- End of period...................................... $237,142,547 $ 174,972,974 $ 962,002,229 $ 839,057,696 ============ ============= ============= ============= Undistributed (overdistributed) net investment income (loss) at end of period............................ $ 1,468,323 $ (14,405) $ (3,402,397) $ (3,410) ============ ============= ============= =============
SMALL CAP FUND REAL ESTATE EQUITY FUND ---------------------------- ------------------------------- (UNAUDITED) (UNAUDITED) SIX MONTHS YEAR SIX MONTHS YEAR ENDED ENDED ENDED ENDED JUNE 30, DECEMBER 31, June 30, December 31, 2003 2002 2003 2002 (a) ------------ ------------- ------------- ------------- OPERATIONS: Net investment income (loss)....................... $ (2,646,979) $ (5,349,560) $ 13,654,886 $ 33,395,460 Net realized gain (loss) on investments, foreign currency transactions and foreign capital gains tax............................... 16,623,634 (116,601,064) 3,650,915 (12,684,181) Net change in unrealized appreciation/depreciation on investments and foreign currency translations. 82,105,581 (70,989,821) 73,271,203 (5,589,540) ------------ ------------- ------------- ------------- Net increase (decrease) resulting from operations.. 96,082,236 (192,940,445) 90,577,004 15,121,739 ------------ ------------- ------------- ------------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income: Class A.......................................... -- -- (64,007) (11,804) Class B.......................................... -- -- (26,786) (12,009) Class D.......................................... -- -- (18,629) (4,519) Class Z.......................................... -- -- (11,791,160) (29,889,702) Return of capital: Class Z.......................................... -- -- -- (3,915,328) ------------ ------------- ------------- ------------- Total distributions to shareholders................ -- -- (11,900,582) (33,833,362) ------------ ------------- ------------- ------------- NET CAPITAL SHARE TRANSACTIONS....................... (30,417,348) 68,005,564 (22,712,428) 174,112,297 ------------- ------------- ------------- ------------- Net increase (decrease) in net assets................ 65,664,888 (124,934,881) 55,963,994 155,400,674 NET ASSETS: Beginning of period................................ 493,031,068 617,965,949 776,990,508 621,589,834 ------------ ------------- ------------- ------------- End of period...................................... $558,695,956 $ 493,031,068 $ 832,954,502 $ 776,990,508 ============ ============= ============= ============= Undistributed (overdistributed) net investment income (loss) at end of period............................ $ (2,465,982) $ 180,997 $ 7,504,375 $ 5,750,071 ============ ============= ============= =============
TECHNOLOGY FUND STRATEGIC VALUE FUND ---------------------------- ------------------------------ (UNAUDITED) (UNAUDITED) SIX MONTHS YEAR SIX MONTHS YEAR ENDED ENDED ENDED ENDED June 30, December 31, June 30, December 31, 2003 2002 (a) 2003 2002 (a) ------------ -------------- ------------- ------------- OPERATIONS: Net investment income (loss)....................... $ (66,359) $ (122,568) $ 1,192,681 $ 1,880,227 Net realized gain (loss) on investments, foreign currency transactions and foreign capital gains tax............................... 1,881,408 (4,188,861) (4,002,895) (27,776,780) Net change in unrealized appreciation/depreciation on investments and foreign currency translations. 1,267,944 (748,526) 34,283,815 (13,657,887) ------------ ------------- ------------- ------------- Net increase (decrease) resulting from operations.. 3,082,993 (5,059,955) 31,473,601 (39,554,440) ------------ ------------- ------------- ------------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income: Class A.......................................... -- -- -- -- Class B.......................................... -- -- -- -- Class D.......................................... -- -- -- -- Class Z.......................................... -- -- -- (1,839,312) Return of capital: Class Z.......................................... -- -- -- (376,144) ------------ ------------- ------------- ------------- Total distributions to shareholders................ -- -- -- (2,215,456) ------------ ------------- ------------- ------------- NET CAPITAL SHARE TRANSACTIONS....................... 3,558,256 2,738,412 (32,113,623) 168,107,411 ------------ ------------- ------------- ------------- Net increase (decrease) in net assets................ 6,641,249 (2,321,543) (640,022) 126,337,515 NET ASSETS: Beginning of period................................ 8,063,520 10,385,063 265,841,220 139,503,705 ------------ ------------- ------------- ------------- End of period...................................... $ 14,704,769 $ 8,063,520 $ 265,201,198 $ 265,841,220 ============ ============= ============= ============= Undistributed (overdistributed) net investment income (loss) at end of period............................ $ (66,359) $ -- $ 1,255,019 $ 62,338 ============ ============= ============= =============
(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 138-139 Spread STATEMENTS OF CHANGES IN NET ASSETS - -------------------------------------------------------------------------------- COLUMBIA FUNDS
BALANCED FUND SHORT TERM BOND FUND ---------------------------- ------------------------------ (UNAUDITED) (UNAUDITED) SIX MONTHS YEAR SIX MONTHS YEAR ENDED ENDED ENDED ENDED JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, 2003 2002 (a) 2003 2002 (b) ------------ ------------- ------------- ------------- OPERATIONS: Net investment income.............................. $ 6,983,396 $ 20,794,186 $ 5,690,028 $ 3,936,510 Net realized gain (loss) on investments............ (9,450,608) (71,176,504) 4,014,692 (5,253) Net change in net unrealized appreciation/ depreciation on investments..................... 50,578,387 (68,893,518) 231,520 2,802,185 ------------ ------------- ------------- ------------- Net increase (decrease) resulting from operations.. 48,111,175 (119,275,836) 9,936,240 6,733,442 ------------ ------------- ------------- ------------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income: Class A.......................................... (2,856) (693) (207,615) (7,886) Class B.......................................... (8,640) (2,254) (132,930) (6,548) Class D.......................................... (2,920) (1,798) (113,340) (9,865) Class G.......................................... -- -- (16,944) (2,198) Class T.......................................... -- -- (371,866) (48,546) Class Z.......................................... (6,954,077) (21,201,650) (5,040,566) (3,843,068) From net realized gains: Class A.......................................... -- -- -- -- Class B.......................................... -- -- -- -- Class D.......................................... -- -- -- -- Class Z.......................................... -- -- -- (18,783) ------------ ------------- ------------- ------------- Total distributions to shareholders................ (6,968,493) (21,206,395) (5,883,261) (3,936,894) ------------ ------------- ------------- ------------- NET CAPITAL SHARE TRANSACTIONS....................... (63,355,893) (173,776,980) 185,520,274 301,621,677 ------------ ------------- ------------- ------------- Net increase (decrease) in net assets................ (22,213,211) (314,259,211) 189,573,253 304,418,225 NET ASSETS: Beginning of period................................ 669,490,083 983,749,294 367,347,830 62,929,605 ------------ ------------- ------------- ------------- End of period...................................... $647,276,872 $ 669,490,083 $ 556,921,083 $ 367,347,830 ============ ============= ============= ============= Undistributed (overdistributed) net investment income (loss) at end of period............................ $ (340,280) $ (355,183) $ (397,994) $ (204,761) ============ ============= ============= =============
FIXED INCOME NATIONAL MUNICIPAL SECURITIES FUND BOND FUND ---------------------------- ------------------------------ (UNAUDITED) (UNAUDITED) SIX MONTHS YEAR SIX MONTHS YEAR ENDED ENDED ENDED ENDED JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, 2003 2002 (a) 2003 2002 (a) ------------ ------------- ------------- ------------- OPERATIONS: Net investment income.............................. $ 10,820,590 $ 24,670,569 $ 322,124 $ 603,412 Net realized gain (loss) on investments............ 9,277,815 (2,558,516) 63,153 88,597 Net change in net unrealized appreciation/ depreciation on investments..................... 1,115,454 14,601,556 310,467 631,224 ------------ ------------ ------------- ------------- Net increase (decrease) resulting from operations.. 21,213,859 36,713,609 695,744 1,323,233 ------------ ------------ ------------- ------------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income: Class A.......................................... (48,571) (1,157) (3,799) (200) Class B.......................................... (41,377) (2,638) (4,584) (232) Class D.......................................... (24,584) (1,013) (3,334) (147) Class G.......................................... -- -- -- -- Class T.......................................... -- -- -- -- Class Z.......................................... (11,250,044) (25,339,044) (309,765) (598,784) From net realized gains: Class A.......................................... -- -- -- (230) Class B.......................................... -- -- -- (784) Class D.......................................... -- -- -- (220) Class Z.......................................... -- -- -- (66,172) ------------- ------------ ------------- ------------- Total distributions to shareholders................ (11,364,576) (25,343,852) (321,482) (666,769) ------------- ------------ ------------- ------------- NET CAPITAL SHARE TRANSACTIONS....................... 11,670,722 73,248,344 135,281 2,233,945 ------------- ------------ ------------- ------------- Net increase (decrease) in net assets................ 21,520,005 84,618,101 509,543 2,890,409 NET ASSETS: Beginning of period................................ 550,361,600 465,743,499 16,659,255 13,768,846 ------------ ------------ ------------- ------------- End of period...................................... $571,881,605 $550,361,600 $ 17,168,798 $ 16,659,255 ============ ============ ============= ============= Undistributed (overdistributed) net investment income (loss) at end of period............................ $ (1,429,580) $ (885,594) $ 5,538 $ 4,896 ============ ============ ============= =============
OREGON MUNICIPAL BOND FUND HIGH YIELD FUND ---------------------------- ------------------------------ (UNAUDITED) (UNAUDITED) SIX MONTHS YEAR SIX MONTHS YEAR ENDED ENDED ENDED ENDED JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, 2003 2002 (a) 2003 2002 (a) ------------ ------------- -------------- ------------- OPERATIONS: Net investment income.............................. $ 10,899,331 $ 22,413,341 $ 35,133,030 $ 29,377,465 Net realized gain (loss) on investments............ 2,376,789 3,932,577 1,252,109 (27,771,338) Net change in net unrealized appreciation/ depreciation on investments..................... 6,347,297 17,775,246 43,832,599 9,777,957 ------------ ------------- -------------- ------------- Net increase (decrease) resulting from operations.. 19,623,417 44,121,164 80,217,738 11,384,084 ------------ ------------- -------------- ------------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income: Class A.......................................... (14,460) (932) (2,890,349) (111,753) Class B.......................................... (10,069) (1,094) (1,347,545) (63,166) Class D.......................................... (11,574) (1,673) (1,647,194) (57,867) Class G.......................................... -- -- -- -- Class T.......................................... -- -- -- -- Class Z.......................................... (10,845,840) (22,348,370) (31,581,522) (30,110,118) From net realized gains: Class A.......................................... -- (1,987) -- -- Class B.......................................... -- (2,513) -- -- Class D.......................................... -- (2,990) -- -- Class Z.......................................... -- (5,015,648) -- -- ------------ ------------- -------------- ------------- Total distributions to shareholders................ (10,881,943) (27,375,207) (37,466,610) (30,342,904) ------------ ------------- -------------- ------------- NET CAPITAL SHARE TRANSACTIONS....................... 10,474,261 1,779,138 719,933,669 551,477,756 ------------ ------------- -------------- ------------- Net increase (decrease) in net assets................ 19,215,735 18,525,095 762,684,797 532,518,936 NET ASSETS: Beginning of period................................ 510,162,968 491,637,873 771,512,777 238,993,841 ------------ ------------- -------------- ------------- End of period...................................... $529,378,703 $ 510,162,968 $1,534,197,574 $ 771,512,777 ============ ============= ============== ============= Undistributed (overdistributed) net investment income (loss) at end of period............................ $ 149,364 $ 131,976 $ (3,322,607) $ (989,027) ============ ============= ============== =============
DAILY INCOME COMPANY ---------------------------- (UNAUDITED) SIX MONTHS YEAR ENDED ENDED JUNE 30, DECEMBER 31, 2003 2002 ------------- -------------- OPERATIONS: Net investment income........................ $ 3,334,719 $ 14,142,055 Net realized gain (loss) on investments...... -- -- Net change in net unrealized appreciation/ depreciation on investments............... -- -- ------------- -------------- Net increase (decrease) resulting from operations.................................. 3,334,719 14,142,055 ------------- -------------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income: Class A.................................... -- -- Class B.................................... -- -- Class D.................................... -- -- Class G.................................... -- -- Class T.................................... -- -- Class Z.................................... (3,463,989) (14,142,055) From net realized gains: Class A.................................... -- -- Class B.................................... -- -- Class D.................................... -- -- Class Z.................................... -- -- ------------- -------------- Total distributions to shareholders.......... (3,463,989) (14,142,055) ------------- -------------- NET CAPITAL SHARE TRANSACTIONS................. (237,234,871) (117,460,299) ------------- -------------- Net increase (decrease) in net assets.......... (237,364,141) (117,460,299) NET ASSETS: Beginning of period.......................... 1,136,074,898 1,253,535,197 ------------- -------------- End of period................................ $ 898,710,757 $1,136,074,898 ============= ============== Undistributed (overdistributed) net investment income (loss) at end of period...... $ (129,270) $ -- ============= ============== (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 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. 140-141 Spread NOTES TO FINANCIAL STATEMENTS (UNAUDITED) - -------------------------------------------------------------------------------- NOTE 1 - ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES The Columbia Funds (the "Funds") consist of the following: Columbia Common Stock Fund Columbia Growth Fund Columbia International Stock Fund Columbia Special Fund Columbia Small Cap Fund Columbia Real Estate Equity Fund Columbia Technology Fund Columbia Strategic Value Fund Columbia Balanced Fund Columbia Short Term Bond Fund Columbia Fixed Income Securities Fund Columbia National Municipal Bond Fund Columbia Oregon Municipal Bond Fund Columbia High Yield Fund Columbia Daily Income Company 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 Equity 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, offer 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 $171,907,216 142 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) - -------------------------------------------------------------------------------- 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. The following is a summary of significant accounting policies, in conformity with accounting principles generally accepted in the United States of America, which are consistently followed by 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 investment advisor 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 those securities valued using fundamental analysis. Short-term obligations 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. Investments 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 generally determined prior to the close of the New York Stock Exchange. Occasionally, events affecting the values of such securities and such 143 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) - -------------------------------------------------------------------------------- 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 under procedures established by and under the general supervision of the Board of Directors of each Fund. REPURCHASE AGREEMENTS. The Funds may engage in repurchase agreement transactions. The Funds, through their custodians, receive delivery of underlying securities collateralizing repurchase agreements. The Funds' investment 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. 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. FORWARD CURRENCY EXCHANGE CONTRACTS. Certain Funds may enter into forward currency exchange contracts in connection with planned purchases or sales of securities or to hedge the U.S. dollar value of the portfolio securities denominated in a foreign currency. Contracts are valued at the prevailing forward exchange rate of the underlying currencies. The gain or loss arising from the difference between the original contract price and the closing price of such contract is included in the net realized gains or losses from foreign currency transactions. Fluctuations in the value of forward currency contracts are recorded for financial reporting purposes as unrealized gains or losses. The 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. As of June 30, 2003, the Funds had no outstanding forward currency contracts. FOREIGN CURRENCY TRANSLATIONS. The books and records of the Funds 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. 144 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) - -------------------------------------------------------------------------------- The Funds do 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 Funds' 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 accounting principles generally accepted in the United States of America 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 for all Funds. Additional distributions of net investment income and capital gains for each Fund may be made at the discretion of the Board of Directors in accordance with federal income tax regulations. FEDERAL INCOME TAXES. Each Fund intends to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies by distributing substantially all taxable net investment income and net realized gains to its shareholders in a manner that results in no tax to the Funds. Therefore, no federal income or excise tax provision is required. FOREIGN CAPITAL GAINS TAXES. Realized gains in certain countries may be subject to foreign taxes at the Fund level, at rates ranging from approximately 10% to 30%. The Funds provide for such foreign taxes on net realized and unrealized gains at the appropriate rate for each jurisdiction. 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. 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 may exist as to an issuer's ability to meet principal and interest payments. 145 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) - -------------------------------------------------------------------------------- NOTE 2 - INVESTMENT TRANSACTIONS As of June 30, 2003, for federal income tax purposes, net unrealized appreciation (depreciation) on investments was as follows:
UNREALIZED UNREALIZED NET UNREALIZED APPRECIATION DEPRECIATION APPRECIATION ------------ ------------- -------------- Columbia Common Stock Fund.............. $ 64,120,140 $ (4,595,997) $ 59,524,143 Columbia Growth Fund.................... 159,688,310 (8,424,601) 151,263,709 Columbia International Stock Fund....... 27,714,058 (10,043,019) 17,671,039 Columbia Special Fund................... 170,038,426 (22,566,394) 147,472,032 Columbia Small Cap Fund................. 114,213,700 (10,269,165) 103,944,535 Columbia Real Estate Equity Fund........ 145,369,740 (11,884,549) 133,485,191 Columbia Technology Fund................ 1,852,246 (191,569) 1,660,677 Columbia Strategic Value Fund........... 36,470,527 (8,269,085) 28,201,442 Columbia Balanced Fund.................. 72,711,392 (4,723,907) 67,987,485 Columbia Short Term Bond Fund........... 7,730,585 (776,379) 6,954,206 Columbia Fixed Income Securities Fund... 25,794,350 (1,565,786) 24,228,564 Columbia National Municipal Bond Fund... 1,083,718 (14,459) 1,069,259 Columbia Oregon Municipal Bond Fund..... 34,316,240 (3,329,242) 30,986,998 Columbia High Yield Fund................ 53,052,219 (2,916,640) 50,135,579
During the six months ended June 30, 2003, purchases and sales of investments, other than short-term obligations, were as follows: PURCHASES SALES --------------- -------------- Columbia Common Stock Fund............... $ 330,022,745 $ 366,497,031 Columbia Growth Fund..................... 660,152,225 717,294,013 Columbia International Stock Fund........ 91,112,470 42,954,360 Columbia Special Fund.................... 537,274,116 516,593,900 Columbia Small Cap Fund.................. 279,254,013 304,941,040 Columbia Real Estate Equity Fund......... 206,427,672 231,704,671 Columbia Technology Fund................. 45,308,117 41,698,207 Columbia Strategic Value Fund............ 103,272,838 148,243,890 Columbia Balanced Fund................... 544,210,863 613,313,263 Columbia Short Term Bond Fund............ 583,192,307 296,837,304 Columbia Fixed Income Securities Fund.... 686,190,507 653,846,605 Columbia National Municipal Bond Fund.... 1,564,396 1,294,034 Columbia Oregon Municipal Bond Fund...... 42,990,848 35,009,052 Columbia High Yield Fund................. 786,539,636 103,615,060 During the six months ended June 30, 2003, purchases and sales of U.S. Government securities were as follows: PURCHASES SALES --------------- -------------- Columbia Common Stock Fund............... $ 3,355,849 $ 3,882,012 Columbia Growth Fund..................... 4,056,957 13,563,909 Columbia Strategic Value Fund............ 751,850 -- Columbia Balanced Fund................... 199,321,332 208,477,105 Columbia Short Term Bond Fund............ 42,046,902 41,809,724 Columbia Fixed Income Securities Fund.... 570,447,881 544,515,746 146 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) - -------------------------------------------------------------------------------- NOTE 3 -- FEDERAL TAX INFORMATION Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from accounting principles generally accepted in the United States of America. The following capital loss carryforwards, determined as of December 31, 2002, 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 2008 2009 2010 Total ------- -------- ---------- -------- ----------- ---------- ----------- ----------- ------------ Columbia Common Stock Fund...... $ -- $ -- $ -- $ -- $ -- $ -- $ 52,039,637 $ 73,274,519 $125,314,156 Columbia Growth Fund............ -- -- -- -- 23,087,439 7,477,479 162,540,209 201,393,752 394,498,879 Columbia International Stock Fund...... -- -- -- -- 7,390,519 5,799,517 24,287,430 16,745,931 54,223,397 Columbia Special Fund............ -- -- -- -- 9,239,978 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...... -- -- -- -- 1,431,991 789,528 -- 18,244,149 20,465,668 Columbia Balanced Fund............ -- -- -- -- -- -- 65,697,715 69,939,934 135,637,649 Columbia Short Term Bond Fund....... 9,409 114,406 1,642,976 517,428 -- 1,103,188 -- -- 3,387,407 Columbia Fixed Income Securities Fund. -- -- -- -- 339,655 8,464,598 -- 2,709,651 11,513,904 Columbia High Yield Fund............ -- -- -- -- 1,036,180 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 merger 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 merger with LCEF and LCF, respectively (See Note 1). 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. 147 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) - -------------------------------------------------------------------------------- NOTE 4 -- TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES On April 1, 2003, Columbia Management Company ("CMC"), the investment advisor to the Funds, and Colonial Management Associates, Inc. ("Colonial"), the pricing and bookkeeping agent, merged into Columbia Management Advisors, Inc. ("Columbia"), formerly known as Columbia Management Co., an indirect, wholly-owned subsidiary of FleetBoston Financial Corporation. At the time of the merger, Columbia assumed the obligations of CMC and Colonial with respect to the Funds. The merger did not change the way the Funds are managed, the investment personnel assigned to manage the Funds or the fees paid by the Funds. MANAGEMENT FEES. Investment management fees were paid by each Fund to Columbia. 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% 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%
TRANSFER AGENT FEES. The transfer agent for the Funds is Liberty Fund Services, Inc. ("LFSI"), an affiliate of Columbia. For all Funds' Class Z shares, with the exception of Columbia National Municipal Bond 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 Bond Fund is not subject to the $1,500 flat fee. For Class A, Class B, Class D, Class G and Class 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, Class B, Class D, Class G and Class T shares, or 2) a fee based upon an annual rate of 0.06% of the average daily net assets attributable to Class A, Class B, Class D, Class G and Class T shares, plus a per transaction fee and a per account fee. In addition, LFSI receives reimbursement for certain out-of-pocket expenses. PRICING AND BOOKKEEPING FEES. Columbia is responsible for providing pricing and bookkeeping services to the Funds under a Pricing, Bookkeeping and Fund Administration Agreement. Under a separate agreement (the "Outsourcing Agreement"), Columbia has delegated certain of these functions to State Street Bank and Trust Company ("State Street"). Columbia pays fees to State Street under the Outsourcing Agreement. Under its pricing and bookkeeping agreement with the Funds, Columbia 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. 148 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) - -------------------------------------------------------------------------------- UNDERWRITING DISCOUNTS, SERVICE AND DISTRIBUTION FEES. Liberty Funds Distributor, Inc. (the "Distributor"), an affiliate of Columbia, is the Funds' principal underwriter. For the six months ended June 30, 2003, the Funds have been advised that the Distributor retained fees as follows:
FRONT-END CONTINGENT DEFERRED SALES CHARGE SALES CHARGE ------------------------------- ------------------------------------------- CLASS A CLASS D CLASS T CLASS A CLASS B CLASS D CLASS G --------- --------- --------- -------- --------- --------- ---------- Columbia Common Stock Fund................ $ 164 $ -- $ -- $ -- $ 7 $ -- $ -- Columbia Growth Fund...................... 2,131 -- -- 1,109 -- 45 15,782 Columbia International Stock Fund......... 6,613 -- -- 2,087 14,784 106 -- Columbia Special Fund..................... 776 -- 54 22 5,641 119 1,577 Columbia Real Estate Equity Fund.......... 8,678 -- -- -- 661 97 -- Columbia Technology Fund.................. 691 -- -- -- 154 -- -- Columbia Strategic Value Fund............. 704 -- -- 203 6,141 92 -- Columbia Balanced Fund.................... 710 -- -- 77 1,607 -- -- Columbia Short Term Bond Fund............. 28,783 -- 33 953 31,971 10,769 5,094 Columbia Fixed Income Securities Fund..... 3,902 -- -- -- 4,245 1,671 -- Columbia National Municipal Bond Fund..... 1,145 -- -- -- -- 121 -- Columbia Oregon Municipal Bond Fund....... 3,485 -- -- -- 625 2,100 -- Columbia High Yield Fund.................. 127,693 -- -- -- 46,181 21,861 --
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 rate of average daily net assets 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 of the Class A average daily net assets. (b) The Distributor has contractually agreed to limit a portion of the Class G distribution and service fees so that combined the fee does exceed 0.95% annually of the Class G shares average daily net assets. (c) The Distributor has contractually agreed to limit a portion of the Class G distribution and service fees so that combined the fee does exceed 0.80% annually of the Class G shares average daily net assets. 149 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) - -------------------------------------------------------------------------------- NOTE 4 -- TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES (CONT.) The Distributor has voluntarily agreed to waive a portion of the Class D distribution and service fees so that combined these fees do not exceed the annual rates of average daily net assets as follows: Columbia Short Term Bond Fund............... 0.40% Columbia Fixed Income Securities Fund....... 0.85% Columbia National Municipal Bond Fund....... 0.65% Columbia Oregon Municipal Bond Fund......... 0.65% Columbia High Yield Fund.................... 0.85% The CDSC and the fees received from the Plan are used principally as repayment to the Distributor for amounts paid by the Distributor to dealers who sold such shares. SHAREHOLDER SERVICES PLAN. The Columbia Special Fund and Columbia Short Term Bond Fund have adopted shareholder services plans that permit them to pay for certain services provided to Class T shareholders by their financial 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. EXPENSE LIMITS. For the six months ended June 30, 2003, and until further notice, Columbia has contractually agreed to reimburse expenses (excluding any class specific distribution and service fees, brokerage commissions, interest, taxes and extraordinary expenses, if any) in excess of 1.65% and 0.65% for the Columbia Technology Fund and Columbia National Municipal Bond Fund, respectively. For the three years commencing November 1, 2000 and ending October 31, 2003, Columbia has contractually agreed to reimburse expenses (excluding any class specific distribution, service 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, Columbia or its affiliate has contractually 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. Columbia has contractually agreed to waive a portion of the transfer agent fees as follows:
Class A Class B Class D Class G Class T Class Z --------- --------- --------- --------- ---------- --------- Columbia International Stock Fund....... -- 0.11% 0.75% -- -- 0.12% Columbia Special Fund................... 0.01% 0.12% 0.09% -- -- 0.05% Columbia Strategic Value Fund........... -- 0.23% 0.15% -- -- 0.03%
Columbia has agreed to keep the transfer agent agreements in place through May 2004. Thereafter, these arrangements may be modified or terminated by Columbia at any time. 150 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) - -------------------------------------------------------------------------------- OTHER. 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 six months ended June 30, 2003 are as follows: Custody Name of Fund Credits - -------------- ----------- Columbia Common Stock Fund.................. $ 1 Columbia Growth Fund........................ 589 Columbia International Stock Fund........... 235 Columbia Special Fund....................... 498 Columbia Small Cap Fund..................... 846 Columbia Real Estate Equity Fund............ 34 Columbia Technology Fund.................... 23 Columbia Strategic Value Fund............... 2,714 Columbia Balanced Fund...................... 1,559 Columbia Short Term Bond Fund............... 2,905 Columbia Fixed Income Securities Fund....... 1,221 Columbia National Municipal Bond Fund....... 47 Columbia Oregon Municipal Bond Fund......... 91 Columbia High Yield Fund.................... 5,397 Columbia Daily Income Company............... 1,293 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. The Funds' Independent Directors may participate in a deferred compensation plan which may be terminated at any time. Obligations of the plan will be paid solely out of each Fund's assets. 151 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) - -------------------------------------------------------------------------------- NOTE 5 - CAPITAL STOCK ACTIVITY
Columbia Funds For the Six Months Ended June 30, 2003 REAL COMMON INTERNATIONAL SMALL ESTATE STOCK GROWTH STOCK SPECIAL CAP EQUITY FUND FUND FUND FUND FUND FUND ------------ --------- ------------- ---------- --------- ---------- SHARES: Class A: Shares sold................................. 9,966 42,438 139,964 186,053 -- 459,133 Shares issued for distributions reinvested................... -- -- -- -- -- 2,966 Shares redeemed............................. (68) (16,962) (236,881) (71,106) -- (110,978) ------------ --------- ------------- ---------- --------- ---------- Net increase (decrease).................. 9,898 25,476 (96,917) 114,947 -- 351,121 ============ ========= ============= ========== ========= ========== Class B: Shares sold................................. 25,823 26,111 74,019 34,035 -- 139,273 Shares issued for distributions reinvested................... -- -- -- -- -- 868 Shares redeemed............................. (7,327) (4,175) (223,401) (26,851) -- (6,804) ------------ --------- ------------- ---------- --------- ---------- Net increase (decrease).................. 18,496 21,936 (149,382) 7,184 -- 133,337 ============ ========= ============= ========== ========= ========== Class D: Shares sold................................. 13,018 4,730 55,173 16,654 -- 115,899 Shares issued for distributions reinvested................... -- -- -- -- -- 776 Shares redeemed............................. (8,470) (1,021) (56,607) (5,593) -- (3,391) ------------ --------- ------------- ---------- --------- ---------- Net increase (decrease).................. 4,548 3,709 (1,434) 11,061 -- 113,284 ============ ========= ============= ========== ========= ========== Class G: Shares sold................................. -- 3,885 -- 1,091 -- -- Shares redeemed............................. -- (49,469) -- (6,716) -- -- ------------ --------- ------------- ---------- --------- ---------- Net decrease............................. -- (45,584) -- (5,625) -- -- ============ ========= ============= ========== ========= ========== Class T: Shares sold................................. -- -- -- 18,913 -- -- Shares redeemed............................. -- -- -- (92,598) -- -- ------------ --------- ------------- ---------- --------- ---------- Net decrease............................. -- -- -- (73,685) -- -- ============ ========= ============= ========== ========= ========== Class Z: Shares sold................................. 2,616,660 2,676,829 9,239,676 12,130,253 5,583,961 16,163,457 Shares issued for distributions reinvested................... -- -- -- -- -- 497,388 Shares redeemed............................. (4,624,034) (4,737,482) (4,488,567)(11,961,780)(7,521,152)(18,535,700) ------------ --------- ------------- ---------- --------- ---------- Net increase (decrease).................. (2,007,374) (2,060,653) 4,751,109 168,473 (1,937,191) (1,874,855) ============ ========= ============= ========== ========= ==========
152 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) - --------------------------------------------------------------------------------
Columbia Funds For the Six Months Ended June 30, 2003 REAL COMMON INTERNATIONAL SMALL ESTATE STOCK GROWTH STOCK SPECIAL CAP EQUITY FUND FUND FUND FUND FUND FUND -------------- ------------- ------------- ------------- ----------- -------------- AMOUNTS: Class A: Sales................................... $ 153,547 $ 933,411 $ 1,394,170 $ 2,972,799 -- $ 8,571,877 Distributions reinvested................ -- -- -- -- -- 56,728 Redemptions............................. (1,088) (377,463) (2,348,759) (1,183,261) -- (2,104,646) -------------- ------------- ------------- ------------- ----------- -------------- Net increase (decrease).............. $ 152,459 $ 555,948 $ (954,589) $ 1,789,538 -- $ 6,523,959 ============== ============= ============= ============= =========== ============== Class B: Sales................................... $ 378,473 $ 582,369 $ 735,024 $ 511,566 -- $ 2,528,829 Distributions reinvested................ -- -- -- -- -- 16,675 Redemptions............................. (107,471) (91,751) (2,219,101) (398,271) -- (126,230) -------------- ------------- ------------- ------------- ----------- -------------- Net increase (decrease).............. $ 271,002 $ 490,618 $ (1,484,077) $ 113,295 -- $ 2,419,274 ============== ============= ============= ============= =========== ============== Class D: Sales................................... $ 203,789 $ 100,204 $ 532,531 $ 251,416 -- $ 2,115,488 Distributions reinvested................ -- -- -- -- -- 14,883 Redemptions............................. (135,410) (20,183) (544,845) (87,351) -- (65,655) -------------- ------------- ------------- ------------- ----------- -------------- Net increase (decrease).............. $ 68,379 $ 80,021 $ (12,314) $ 164,065 -- $ 2,064,716 ============== ============= ============= ============= =========== ============== Class G: Sales................................... -- $ 83,143 -- $ 16,206 -- -- Redemptions............................. -- (1,060,133) -- (101,822) -- -- -------------- ------------- ------------- ------------- ----------- -------------- Net decrease......................... -- $ (976,990) -- $ (85,616) -- -- ============== ============= ============= ============= =========== ============== Class T: Sales................................... -- -- -- $ 289,620 -- -- Redemptions............................. -- -- -- (1,396,633) -- -- -------------- ------------- ------------- ------------- ----------- -------------- Net decrease......................... -- . -- -- $ (1,107,013) -- -- ============== ============= ============= ============= =========== ============== Class Z: Sales................................... $ 39,771,596 $ 58,370,638 $ 92,465,188 $ 184,076,519 $97,168,924 $ 292,399,409 Distributions reinvested................ -- -- -- -- -- 9,407,043 Redemptions............................. (70,087,017) (101,528,465) (44,302,429) (181,372,892)(127,586,272) (335,526,829) -------------- ------------- ------------- ------------- ----------- -------------- Net increase (decrease).............. $ (30,315,421) $ (43,157,827) $ 48,162,759 $ 2,703,627 $(30,417,348) $ (33,720,377) ============== ============= ============= ============= =========== ============== Total Capital Share Transactions........ $ (29,823,581) $ (43,008,230) $ 45,711,779 $ 3,577,896 $(30,417,348) $ (22,712,428) ============== ============= ============= ============= =========== ==============
153 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) - -------------------------------------------------------------------------------- NOTE 5 - CAPITAL STOCK ACTIVITY (CONT.)
Columbia Funds For the Six Months Ended June 30, 2003 SHORT FIXED NATIONAL STRATEGIC TERM INCOME MUNICIPAL TECHNOLOGY VALUE BALANCED BOND SECURITIES BOND FUND FUND FUND FUND FUND FUND -------------- ------------- ------------- ------------- ----------- -------------- SHARES: Class A: Shares sold............................. 126,957 49,589 14,951 3,978,637 554,077 48,508 Shares issued for distributions reinvested............................. -- -- 155 16,743 2,617 304 Shares redeemed......................... (75,888) (322,727) (1,012) (339,459) (176,897) (19,130) -------------- ------------- ------------- ------------- ----------- -------------- Net increase (decrease).............. 51,069 (273,138) 14,094 3,655,921 379,797 29,682 ============== ============= ============= ============= =========== ============== Class B: Shares sold............................. 213,650 40,258 117,690 2,568,981 238,247 55,565 Shares issued for distributions reinvested............................. -- -- 424 12,132 2,166 228 Shares redeemed......................... (14,433) (25,630) (13,463) (273,390) (33,524) (6,377) -------------- ------------- ------------- ------------- ----------- -------------- Net increase......................... 199,217 14,628 104,651 2,307,723 206,889 49,416 ============== ============= ============= ============= =========== ============== Class D: Shares sold............................. 23,278 26,291 21,293 1,557,650 198,896 34,574 Shares issued for distributions reinvested............................. -- -- 152 11,325 1,061 157 Shares redeemed......................... (21,478) (6,421) (10,933) (186,574) (24,068) (1,195) -------------- ------------- ------------- ------------- ----------- -------------- Net increase ........................ 1,800 19,870 10,512 1,382,401 175,889 33,536 ============== ============= ============= ============= =========== ============== Class G: Shares sold............................. -- -- -- 17,364 -- -- Shares issued for distributions reinvested............................. -- -- -- 1,790 -- -- Shares redeemed......................... -- -- -- (35,374) -- -- -------------- ------------- ------------- ------------- ----------- -------------- Net decrease ........................ -- -- -- (16,220) -- -- ============== ============= ============= ============= =========== ============== Class T: Shares sold............................. -- -- -- 337,399 -- -- Shares issued for distributions reinvested............................. -- -- -- 37,926 -- -- Shares redeemed......................... -- -- -- (593,874) -- -- -------------- ------------- ------------- ------------- ----------- -------------- Net decrease ........................ -- -- -- (218,549) -- -- ============== ============= ============= ============= =========== ============== Class Z: Shares sold............................. 2,913,110 3,714,124 3,063,955 26,917,279 11,119,600 330,034 Shares issued for distributions reinvested............................. -- -- 379,244 253,702 781,608 26,852 Shares redeemed......................... (2,357,087) (5,962,717) (7,207,084) (13,051,688) (11,799,398) (453,619) -------------- ------------- ------------- ------------- ----------- -------------- Net increase (decrease).............. 556,023 (2,248,593) (3,763,885) 14,119,293 101,810 (96,733) ============== ============= ============= ============= =========== ==============
154 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) - --------------------------------------------------------------------------------
Columbia Funds For the Six Months Ended June 30, 2003 SHORT FIXED NATIONAL STRATEGIC TERM INCOME MUNICIPAL TECHNOLOGY VALUE BALANCED BOND SECURITIES BOND FUND FUND FUND FUND FUND FUND -------------- ------------- ------------- ------------- ----------- -------------- AMOUNTS: Class A: Sales................................... $ 556,328 $ 666,769 $ 266,229 $ 34,701,589 $ 7,573,346 $ 501,230 Distributions reinvested................ -- -- 2,818 146,157 35,918 3,162 Redemptions............................. (332,801) (4,325,337) (18,314) (2,958,223) (2,404,824) (198,882) -------------- ------------- ------------- ------------- ------------ -------------- Net increase (decrease).............. $ 223,527 $ (3,658,568) $ 250,733 $ 31,889,523 $ 5,204,440 $ 305,510 ============== ============= ============= ============= ============ ============== Class B: Sales................................... $ 1,042,258 $ 540,558 $ 2,098,715 $ 22,378,912 $ 3,237,071 $ 573,902 Distributions reinvested................ -- -- 7,724 105,880 29,641 2,378 Redemptions............................. (70,345) (347,556) (238,226) (2,384,425) (457,544) (65,809) -------------- ------------- ------------- ------------- ------------ -------------- Net increase......................... $ 971,913 $ 193,002 $ 1,868,213 $ 20,100,367 $ 2,809,168 $ 510,471 ============== ============= ============= ============= ============ ============== Class D: Sales................................... $ 115,320 $ 376,660 $ 374,856 $ 13,575,022 $ 2,710,250 $ 356,114 Distributions reinvested................ -- -- 2,764 98,837 14,539 1,635 Redemptions............................. (108,785) (92,118) (191,075) (1,625,318) (331,557) (12,286) -------------- ------------- ------------- ------------- ------------ -------------- Net increase......................... $ 6,535 $ 284,542 $ 186,545 $ 12,048,541 $ 2,393,232 $ 345,463 ============== ============= ============= ============= ============ ============== Class G: Sales................................... -- -- -- $ 152,780 -- -- Distributions reinvested................ -- -- -- 15,692 -- -- Redemptions............................. -- -- -- (308,711) -- -- -------------- ------------- ------------- ------------- ------------ -------------- Net decrease......................... -- -- -- $ (140,239) -- -- ============== ============= ============= ============= ============ ============== Class T: Sales................................... -- -- -- $ 2,964,192 -- -- Distributions reinvested................ -- -- -- 327,519 -- -- Redemptions............................. -- -- -- (5,160,063) -- -- -------------- ------------- ------------- ------------- ------------ -------------- Net decrease ........................ -- -- -- $ (1,868,352) -- -- ============== ============= ============= ============= ============ ============== Class Z: Sales................................... $ 12,350,260 $ 50,914,672 $ 54,601,781 $ 234,947,981 $151,471,488 $ 3,420,048 Distributions reinvested................ -- -- 6,864,623 2,211,431 10,678,367 278,440 Redemptions............................. (9,993,979) (79,847,271) (127,127,788) (113,668,978)(160,885,973) (4,724,651) -------------- ------------- ------------- ------------- ------------ -------------- Net increase (decrease).............. $ 2,356,281 $ (28,932,599) $ (65,661,384) $ 123,490,434 $ 1,263,882 $ (1,026,163) ============== ============= ============= ============= ============ ============== Total Capital Share Transactions........ $ 3,558,256 $ (32,113,623) $ (63,355,893) $ 185,520,274 $ 11,670,722 $ 135,281 ============== ============= ============= ============= ============ ==============
155 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) - -------------------------------------------------------------------------------- NOTE 5 -- CAPITAL STOCK ACTIVITY (CONT.)
Columbia Funds For the Six Months Ended June 30, 2003 OREGON MUNICIPAL HIGH DAILY BOND YIELD INCOME FUND FUND COMPANY --------------- ------------- ------------- SHARES: Class A: Shares sold................................. 84,084 18,849,095 -- Shares issued for distributions reinvested.. 719 273,250 -- Shares redeemed............................. (8,290) (4,785,913) -- --------------- ------------- ------------- Net increase............................. 76,513 14,336,432 -- =============== ============= ============= Class B: Shares sold................................. 41,769 7,798,585 -- Shares issued for distributions reinvested.. 196 90,982 -- Shares redeemed............................. (1,187) (249,883) -- --------------- ------------- ------------- Net increase............................. 40,778 7,639,684 -- =============== ============= ============= Class D: Shares sold................................. 44,080 9,584,297 -- Shares issued for distributions reinvested.. 403 108,080 -- Shares redeemed............................. (16,799) (412,288) -- --------------- ------------- ------------- Net increase............................. 27,684 9,280,089 -- =============== ============= ============= Class Z: Shares sold................................. 8,357,822 75,269,622 353,003,642 Shares issued for distributions reinvested.. 666,582 2,659,317 3,407,264 Shares redeemed............................. (8,324,013) (24,878,667) (593,645,777) --------------- ------------- ------------- Net increase (decrease) ................. 700,391 53,050,272 (237,234,871) =============== ============= =============
156 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) - --------------------------------------------------------------------------------
Columbia Funds For the Six Months Ended June 30, 2003 OREGON MUNICIPAL HIGH DAILY BOND YIELD INCOME FUND FUND COMPANY --------------- ------------- ------------- AMOUNTS: Class A: Sales....................................... $ 1,066,777 $ 161,100,350 -- Distributions reinvested.................... 9,048 2,350,436 -- Redemptions................................. (103,053) (40,936,071) -- --------------- ------------- ------------- Net increase............................. $ 972,772 $ 122,514,715 -- =============== ============= ============= Class B: Sales....................................... $ 524,145 $ 66,559,927 -- Distributions reinvested.................... 2,476 782,479 -- Redemptions................................. (15,171) (2,144,359) -- --------------- ------------- ------------- Net increase............................. $ 511,450 $ 65,198,047 -- =============== ============= ============= Class D: Sales....................................... $ 554,994 $ 81,763,223 -- Distributions reinvested.................... 5,096 929,090 -- Redemptions................................. (216,050) (3,549,388) -- --------------- ------------- ------------- Net increase............................. $ 344,040 $ 79,142,925 -- =============== ============= ============= Class Z: Sales....................................... $ 104,942,586 $ 643,191,097 $ 353,003,642 Distributions reinvested.................... 8,393,012 22,779,604 3,407,264 Redemptions................................. (104,689,599) (212,892,719) (593,645,777) --------------- ------------- ------------- Net increase (decrease) ................. $ 8,645,999 $ 453,077,982 $(237,234,871) =============== ============= ============= Total Capital Share Transactions............ $ 10,474,261 $ 719,933,669 $(237,234,871) =============== ============= =============
157 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) - -------------------------------------------------------------------------------- NOTE 5 -- CAPITAL STOCK ACTIVITY (CONT.)
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 Shares 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) -- -- ----------- ------------ -------------- ------------- ------------ ------------- N et increase -- -- -- 1,755,438 -- -- =========== ============ ============== ============= ============ ============= CLASS Z: Shares sold....................... 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 =========== ============ ============== ============= ============ =============
158 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) - --------------------------------------------------------------------------------
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 (c) FUND (d) FUND FUND (a) ------------- ------------- -------------- ------------- ------------ ------------- AMOUNTS: CLASS A: Sales.............................. $ 31,961 $ 135,724 $ 1,040,525 $ 237,394 -- $ 889,637 Proceeds received in connection with merger............ -- 3,133,045 20,243,813 1,049,181 -- -- Distributions reinvested........... 24 -- -- -- -- 10,830 Redemptions........................ -- (35,026) (1,215,758) (61,507) -- (701) ------------- ------------- -------------- ------------- ------------ ------------- Net increase..................... $ 31,985 $ 3,233,743 $ 20,068,580 $ 1,225,068 -- $ 899,766 ============= ============= ============== ============= ============ ============= CLASS B: Sales.............................. $ 117,918 $ 119,511 $ 492,261 $ 106,916 -- $ 1,057,426 Proceeds received in connection with merger............ -- -- 11,164,070 3,540,022 -- -- Distributions reinvested........... 365 -- -- -- -- 7,526 Redemptions........................ (5,120) -- (768,135) (127,352) -- (486) ------------- ------------- -------------- ------------- ------------ ------------- Net increase...................... $ 113,163 $ 119,511 $ 10,888,196 $ 3,519,586 -- $ 1,064,466 ============= ============= ============== ============= ============ ============= CLASS D: Sales.............................. $ 46,518 $ 105,516 $ 162,310 $ 172,855 -- $ 355,423 Proceeds received in connection with merger............ -- -- 559,632 282,040 -- -- Distributions reinvested........... 105 -- -- -- -- 4,139 Redemptions........................ (14,682) -- (181,537) (6,374) -- -- ------------- ------------- -------------- ------------- ------------ ------------- Net increase...................... $ 31,941 $ 105,516 $ 540,405 $ 448,521 -- $ 359,562 ============= ============= ============== ============= ============ ============= CLASS G: Sales.............................. -- $ 16,449 -- $ 3,363 -- -- Proceeds received in connection with merger............ -- 14,636,657 -- 794,054 -- -- Redemptions........................ -- (235,662) -- (13,602) -- -- ------------- ------------- -------------- ------------- ------------ ------------- Net increase...................... -- $ 14,417,444 -- $ 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.............................. $ 129,705,574* $ 165,334,435 $ 150,103,257 $ 377,870,023 $396,004,404 $ 607,721,107 Proceeds received in connection with merger............ -- 90,545,496 14,246,687 259,343,536 -- -- Distributions reinvested........... 2,267,130 2,235 478,672 -- -- 30,201,439 Redemptions........................ (232,525,563) (346,428,134) (134,815,113) (417,250,145) (327,998,840) (466,134,043) ------------- ------------- -------------- ------------- ------------ ------------- Net increase (decrease)........... $(100,552,859) $ (90,545,968) $ 30,013,503 $ 219,963,414 $ 68,005,564 $ 171,788,503 ============= ============= ============== ============= ============ ============= Total Capital Share Transactions.... $(100,375,770) $ (72,669,754) $ 61,510,684 $ 252,934,343 $ 68,005,564 $ 174,112,297 ============= ============= ============== ============= ============ =============
* Includes $4,174 of securities received in an in-kind transfer. 159 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) - -------------------------------------------------------------------------------- NOTE 5 -- CAPITAL STOCK ACTIVITY (CONT.)
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 ========== =========== =========== =========== =========== ===========
160 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) - --------------------------------------------------------------------------------
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) ------------ ------------ ------------- ------------ ------------ ------------ AMOUNTS: CLASS A: Sales $ 1,013 $ 220,586 $ 147,819 $ 5,597,578 $ 939,670 $ 66,135 Proceeds received in connection with merger............ -- 54,514,520 -- -- -- -- Distributions reinvested .......... -- -- 668 6,168 252 425 Redemptions ....................... -- (1,789,207) (20) (88,636) -- -- ------------ ------------ ------------- ------------ ------------- ------------ Net increase ................... $ 1,013 $ 52,945,899 $ 148,467 $ 5,515,110 $ 939,922 $ 66,560 ============ ============ ============= ============ ============= ============ CLASS B: Sales ............................. $ 6,709 $ 316,907 $ 622,186 $ 6,252,006 $ 1,456,255 $ 222,588 Proceeds received in connection with merger............ -- 2,128,341 -- -- -- -- Distributions reinvested........... -- -- 2,064 4,943 1,998 906 Redemptions........................ -- (108,351) (5,115) (29,668) (3,454) (150,595) ------------ ------------ ------------- ------------ ------------ ------------ Net increase ................... $ 6,709 $ 2,336,897 $ 619,135 $ 6,227,281 $ 1,454,799 $ 72,899 ============ ============ ============= ============ ============= ============ CLASS D: Sales ............................. $ 1,000 $ 15,708 $ 456,181 $ 5,435,948 $ 421,439 $ 83,038 Proceeds received in connection with merger............. -- 359,105 -- -- -- -- Distributions reinvested........... -- -- 1,738 8,883 510 322 Redemptions ....................... -- (22,407) -- (248,791) -- (33,443) ------------ ------------ ------------- ------------ ------------- ------------ Net increase.................... $ 1,000 $ 352,406 $ 457,919 $ 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 ............................. $ 10,220,887 $352,586,497 $ 129,567,321 $138,763,864 $299,097,456 $ 11,268,258 Proceeds received in connection with merger............ -- 2,348,913 -- 190,685,846 -- -- Distributions reinvested........... -- 2,187,604 20,929,510 3,668,146 25,971,318 649,959 Redemptions........................ (7,491,197) (244,650,805) (325,499,332) (80,968,926) (254,637,100) (9,873,648) ------------ ------------ ------------- ------------ ------------- ------------ Net increase (decrease)......... $ 2,729,690 $112,472,209 $(175,002,501) $252,148,930 $ 70,431,674 $ 2,044,569 ============ ============ ============= ============ ============= ============ Total Capital Share Transactions . $ 2,738,412 $168,107,411 $(173,776,980) $301,621,677 $ 73,248,344 $ 2,233,945 ============ ============ ============= ============ ============= ============
161 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) - -------------------------------------------------------------------------------- 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 ------------- ------------- ------------- 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) ============= ============= =============
162 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) - --------------------------------------------------------------------------------
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. 163 This page intentionally left blank. 164 This page intentionally left blank. 165 [EAGLE HEAD LOGO] ColumbiaFunds Advised by Columbia Advisors, Inc. DIRECTORS DISTRIBUTOR --------- ----------- JAMES C. GEORGE LIBERTY FUNDS DISTRIBUTOR, INC. PATRICK J. SIMPSON ONE FINANCIAL CENTER RICHARD L. WOOLWORTH BOSTON, MASSACHUSETTS 02111-2621 CHARLES R. NELSON INVESTMENT ADVISOR LEGAL COUNSEL ------------------ ------------------ COLUMBIA MANAGEMENT ADVISORS, INC. STOEL RIVES LLP 1300 S.W. SIXTH AVENUE 900 S.W. FIFTH AVENUE, SUITE 2300 PORTLAND, OREGON 97201 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-03/627O-0603 (08/03) 03/2236 ------------- PRSRT STD U.S. Postage PAID Holliston, MA Permit NO. 20 ------------- ITEM 2. CODE OF ETHICS. Not applicable at this time. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Not applicable at this time. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES Not applicable at this time. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS Not applicable at this time. ITEM 6. [RESERVED] ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES Not applicable at this time. ITEM 8. [RESERVED] ITEM 9. CONTROLS AND PROCEDURES. (a) The Registrant's Chief Executive Officer and Chief Financial Officer, based on their evaluation of the Registrant's disclosure controls and procedures as of a date within 90 days of the filing date of this report, have concluded that such controls and procedures are adequately designed to ensure that information required to be disclosed by the Registrant in its reports that it files or submits under the Securities Exchange Act of 1934, as amended, is accumulated and communicated to the Registrant's management, including the Chief Executive Officer and Chief Financial Officer, or persons performing similar functions, as appropriate, to allow timely decisions regarding required disclosure. (b) There was no change in the registrant's internal control over financial reporting that occurred over the registrant's last fiscal half-year that has affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 10. EXHIBITS. (a) File the exhibits listed below as part of this Form. Letter or number the exhibits in the sequence indicated. (a)(1) Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit: Not applicable at this time. (a)(2) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)). Attached hereto as Exhibit 99.CERT. (b) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)). Attached hereto as Exhibit 99.906CERT. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (Registrant) Columbia Special Fund, Inc. ----------------------------------------------------------- By (Signature and Title) /s/ Jeff B. Curtis ---------------------------------------------- Jeff B. Curtis, President Date September 8, 2003 ------------------------------------------------------------------- Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By (Signature and Title) /s/ Jeff B. Curtis ---------------------------------------------- Jeff B. Curtis, President Date September 8, 2003 ------------------------------------------------------------------- By (Signature and Title) /s/ J. Kevin Connaughton ---------------------------------------------- J. Kevin Connaughton, Chief Financial Officer Date September 8, 2003 ------------------------------------------------------------------- EX-99.CERT 3 file002.txt CERTIFICATIONS I, Jeff B. Curtis, certify that: 1. I have reviewed this report on Form N-CSR of Columbia Special Fund, Inc.; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have: (a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (c) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officers and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: September 8, 2003 /s/ Jeff B. Curtis ------------------------------------------- Jeff B. Curtis, President I, J. Kevin Connaughton, certify that: 1. I have reviewed this report on Form N-CSR of Columbia Special Fund, Inc.; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have: (a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (c) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officers and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: September 8, 2003 /s/ J. Kevin Connaughton ------------------------------- J. Kevin Connaughton, Chief Financial Officer EX-99.906CERT 4 file003.txt CERTIFICATIONS CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 In connection with the Certified Shareholder Report of Columbia Special Fund, Inc., Inc (the "Trust") on Form N-CSR for the period ending June 30, 2003, as filed with the Securities and Exchange Commission on the date hereof ("the Report"), the undersigned hereby certifies that, to his knowledge: 1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and 2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Trust. Date: September 8, 2003 /s/ Jeff B. Curtis ------------------------------------------ Jeff B. Curtis, President A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 has been provided to the Registrant and will be retained by the Registrant and furnished to the Securities and Exchange Commission (the "Commission") or its staff upon request. This certification is being furnished to the Commission solely pursuant to 18 U.S.C. ss.1350 and is not being filed as part of the Form N-CSR with the Commission. CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 In connection with the Certified Shareholder Report of Columbia Special Fund, Inc., Inc (the "Trust") on Form N-CSR for the period ending June 30, 2003, as filed with the Securities and Exchange Commission on the date hereof ("the Report"), the undersigned hereby certifies that, to his knowledge: 1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and 2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Trust. Date: September 8, 2003 /s/ J. Kevin Connaughton ------------------------------- J. Kevin Connaughton, Chief Financial Officer A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 has been provided to the Registrant and will be retained by the Registrant and furnished to the Securities and Exchange Commission (the "Commission") or its staff upon request. This certification is being furnished to the Commission solely pursuant to 18 U.S.C. ss.1350 and is not being filed as part of the Form N-CSR with the Commission. -----END PRIVACY-ENHANCED MESSAGE-----