-----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, V+d9+96koVr0x1l7ZOorL8fMyeMpjytyoIC5c8SNzBfUPwgHEGqYxVKva0xeLnh5 5jOtnAtp8jlhH0JeEZa/zw== 0000891804-05-003332.txt : 20051109 0000891804-05-003332.hdr.sgml : 20051109 20051109144607 ACCESSION NUMBER: 0000891804-05-003332 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20050831 FILED AS OF DATE: 20051109 DATE AS OF CHANGE: 20051109 EFFECTIVENESS DATE: 20051109 FILER: COMPANY DATA: COMPANY CONFORMED NAME: COLUMBIA MID CAP GROWTH 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: 051189436 BUSINESS ADDRESS: STREET 1: 1300 SW SIXTH AVE STREET 2: P O BOX 1350 CITY: PORTLAND STATE: OR ZIP: 97207 BUSINESS PHONE: 5032223600 MAIL ADDRESS: STREET 1: 1300 SW SIXTH AVE STREET 2: P O BOX 1350 CITY: PORTLAND STATE: OR ZIP: 92707 FORMER COMPANY: FORMER CONFORMED NAME: COLUMBIA SPECIAL FUND INC DATE OF NAME CHANGE: 19920703 N-CSR 1 file001.txt COLUMBIA MID CAP GROWTH 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 Mid Cap Growth Fund, Inc. - -------------------------------------------------------------------------------- (Exact name of registrant as specified in charter) One Financial Center, Boston, Massachusetts 02111 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip code) Vincent Pietropaolo, 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: 1-617-772-3698 -------------- Date of fiscal year end: August 31, 2005 --------------- Date of reporting period: August 31, 2005 --------------- 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 ANNUAL REPORT AUGUST 31, 2005 COLUMBIA INTERNATIONAL STOCK FUND COLUMBIA MID CAP GROWTH FUND COLUMBIA SMALL CAP GROWTH FUND I [PHOTO OF WOMAN SMILING] COLUMBIA REAL ESTATE EQUITY FUND COLUMBIA TECHNOLOGY FUND COLUMBIA STRATEGIC INVESTOR FUND COLUMBIA BALANCED FUND COLUMBIA SHORT TERM BOND FUND COLUMBIA FIXED INCOME SECURITIES FUND COLUMBIA OREGON INTERMEDIATE MUNICIPAL BOND FUND COLUMBIA CONSERVATIVE HIGH YIELD FUND COLUMBIA DAILY INCOME COMPANY TABLE OF CONTENTS Economic Update ........................................................ 1 Columbia International Stock Fund ...................................... 2 Columbia Mid Cap Growth Fund ........................................... 6 Columbia Small Cap Growth Fund I ....................................... 10 Columbia Real Estate Equity Fund ....................................... 14 Columbia Technology Fund ............................................... 18 Columbia Strategic Investor Fund ....................................... 22 Columbia Balanced Fund ................................................. 26 Columbia Short Term Bond Fund .......................................... 30 Columbia Fixed Income Securities Fund .................................. 34 Columbia Oregon Intermediate Municipal Bond Fund ....................... 38 Columbia Conservative High Yield Fund .................................. 42 Columbia Daily Income Company .......................................... 46 Financial Statements ................................................... 50 Report of Independent Registered Public Accounting Firm ................ 192 Unaudited Information .................................................. 193 Trustees ............................................................... 194 Officers ............................................................... 196 Columbia Funds ......................................................... 197 Important Information About This Report ................................ 201 The views expressed in the President's message and Portfolio Managers' Report reflects the current views of the respective parties. These views are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict so actual outcomes and results may differ significantly from the views expressed. These views are subject to change at any time based upon economic, market or other conditions and the respective parties disclaim any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Columbia Fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any particular Columbia Fund. References to specific company securities should not be construed as a recommendation or investment advice. Not FDIC May Lose Value ---------------- Insured No Bank Gurantee PRESIDENT'S MESSAGE ____________________________________________________________ COLUMBIA FUNDS DEAR SHAREHOLDER: Columbia Management, the asset management division of Bank of America, is in the final stages of a significant business integration effort. Over the last year, we have been integrating various components of the Nations Funds, Galaxy Funds and Columbia Funds, which will result in a single fund family that covers a wide range of markets, sectors and asset classes. Our team of talented, seasoned investment professionals will continue to strive to achieve strong results within their investment categories. Our objective is not only to provide our shareholders with the best products but also to enhance the breadth and availability of our services. Given our ability to now leverage the size and scale of the Columbia Management business, I am pleased that these efforts will also result in substantial cost savings to the funds. Our goal is to create a more simplified, clearly delineated product line. Through thoughtful project planning and execution, we will initially reduce the number of retail mutual funds from over 140 to fewer than 90. Earlier this year several fund mergers and liquidations were successfully completed. As we work to complete the remaining product and service provider consolidations in the coming months, we remain committed to building a mutual fund business that meets, and hopefully exceeds, your desire for personal financial solutions. We will continue to strive for the highest standards of performance and service excellence. The asset management business is in a time of transformation and we are committed to being progressive and innovative in our approach to the business. We value the confidence you have placed in us to assist you in managing your funds during these changing times. As with all businesses within Bank of America, we understand that your trust must be continuously earned and will remain focused on producing results for you. In the pages that follow, you'll find a discussion of the economic environment during the period followed by a detailed report from the fund's manager or managers on key factors that influenced performance. We encourage you to read the manager reports carefully and discuss any questions you have with your financial advisor. As always, we thank you for choosing Columbia Management. We look forward to helping you keep your long-term financial goals on target in the years to come. Sincerely, /s/ Christopher L. Wilson Christopher L. Wilson HEAD OF MUTUAL FUNDS, COLUMBIA MANAGEMENT Christopher L. Wilson is Head of Mutual Funds for Columbia Management, responsible for the day-to-day delivery of mutual fund services to the firm's investors. With the exception of distribution, Chris oversees all aspects of the mutual fund services operation, including treasury, investment accounting and shareholder and broker services. Chris serves as President of Columbia Funds, President & CEO of Nations Funds and President of Galaxy Funds. Chris joined Bank of America in August 2004. ECONOMIC UPDATE ________________________________________________________________ COLUMBIA FUNDS (Sidebar) SUMMARY FOR THE 12-MONTH PERIOD ENDED AUGUST 31, 2005 o DESPITE BOUTS OF VOLATILITY, THE BROAD STOCK MARKET GENERATED A DOUBLE-DIGIT RETURN FOR THE PERIOD. THE S&P 500 INDEX RETURNED 12.56%. AS THE ECONOMY EXPANDED, SMALL CAP STOCKS OUTPERFORMED LARGE CAP STOCKS, AS MEASURED BY THE RUSSELL 2000 INDEX. [UP ARROW] [UP ARROW] S&P 500 RUSSELL INDEX INDEX 12.56% 23.10% o INVESTMENT-GRADE BONDS CHALKED UP MODEST GAINS AS MEASURED BY THE LEHMAN BROTHERS AGGREGATE BOND INDEX. HIGH-YIELD BONDS LED THE FIXED INCOME MARKETS, AS MEASURED BY THE MERRILL LYNCH US HIGH YIELD, CASH PAY INDEX. [UP ARROW] [UP ARROW] LEHMAN MERRILL LYNCH INDEX INDEX 4.15% 9.28% The S&P 500 Index is an unmanaged index that tracks the performance of 500 widely held, large-capitalization US stocks. The Russell 2000 Index is an unmanaged index that tracks the performance of the 2,000 smallest of the 3,000 largest US companies based on market capitalization. The Lehman Brothers Aggregate Bond Index is a market value-weighted index that tracks the performance of fixed-rate, publicly placed, dollar-denominated, and non-convertible investment grade debt issues. The Merrill Lynch US High Yield, Cash Pay Index is an unmanaged index that tracks the performance of non-investment-grade corporate bonds. The US economy moved ahead at a healthy pace during the 12-month period that began September 1, 2004 and ended August 31, 2005. Gross domestic product expanded at an annualized rate of 3.6% as job growth helped buoy consumer spending and rising profits boosted business spending. Employment data was solid. The economy added an average of 185,000 new jobs each month, and the unemployment rate dipped to a four-year low of 4.9%. However, record-high energy prices began to weigh on economic growth as the period wore on. Signs of slower growth cropped up in retail spending and industrial activity. Consumer confidence readings dipped in July and fell sharply in the weeks after Hurricane Katrina, which occurred late in August. The decline was the largest in 25 years, according to the University of Michigan's monthly survey. Now, the challenges of dealing with the storm's devastating losses has further threatened the economy's momentum. Despite these setbacks, the longer-term outlook for the US economy remains favorable. With the assistance from insurance funds, federal monies and charitable contributions, the Gulf region is on track to rebuild, which could send a positive ripple throughout the national economy. DESPITE VOLATILITY, STOCKS MOVED AHEAD The S&P 500 Index--a broad measure of large company stock market performance--returned 12.56% for this reporting period. Although returns were lackluster in the first two months of the period, most segments of the stock market bounced back after the presidential election in November. Stocks retreated again early in 2005 as energy prices and interest rates moved higher. Positive economic reports helped boost stock returns in June and July. However, stocks pulled back again in August as the economy recorded some disappointments. Small- and mid-cap stocks outperformed large-cap stocks. Value stocks led growth stocks except among small caps, where growth outdistanced value. Foreign stock markets outperformed the broad US market. The MSCI EAFE Index, which measures stock market performance in developed markets outside the United States, returned 23.58% for the 12-month period. The stock markets of developing Asia and China did even better. BONDS DELIVERED MODEST GAINS The US bond market delivered positive but modest returns despite rising short-term interest rates, which historically have driven yields on other maturity ranges higher--and bond prices lower. That was not the case over the past 12 months. The yield on the 10-year US Treasury note, a bellwether for the bond market, ended the period at just over 4.0%--slightly lower than where it started the period. In this environment, the Lehman Brothers Aggregate Bond Index returned 4.15% for the 12-month period. High-yield bonds led the fixed income markets despite a setback in the spring when GM and Ford bonds were downgraded. The weak patch for high yield was temporary as generally improved credit ratings, stronger balance sheets and higher profits for many companies in the high-yield universe helped get the sector back on track. The Merrill Lynch US High Yield, Cash Pay Index returned 9.28%. SHORT-TERM INTEREST RATES MOVED HIGHER After a year of the lowest short-term interest rates in recent history, the Federal Reserve Board (the Fed) raised the federal funds rate, a key short-term rate, from 1.50% to 3.50% 1 during the period. In the wake of Hurricane Katrina, some market observers speculated that the Fed might curtail its rate hikes, but the consensus favored higher short-term rates through the end of the year. 1 The federal funds rate was raised to 3.75% on September 20, 2005. 1 PERFORMANCE INFORMATION ________________________________________________________ COLUMBIA INTERNATIONAL STOCK FUND PERFORMANCE OF A $10,000 INVESTMENT 09/01/95 - 08/31/05 ($) SALES CHARGE WITHOUT WITH - ----------------------------------------- Class A 20,339 19,175 - ----------------------------------------- Class B 19,831 19,831 - ----------------------------------------- Class C 19,909 19,909 - ----------------------------------------- Class D 19,973 19,781 - ----------------------------------------- Class G 19,831 19,831 - ----------------------------------------- Class Z 20,618 n/a PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT PERFORMANCE MAY BE LOWER OR HIGHER. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. PLEASE VISIT WWW.COLUMBIAFUNDS.COM FOR DAILY AND MOST RECENT MONTH-END PERFORMANCE UPDATES. GROWTH OF A $10,000 INVESTMENT 09/01/95 - 08/31/05 [MOUNTAIN CHART] CLASS A SHARES CLASS A SHARES MSCI ALL COUNTRY WITHOUT SALES CHARGE WITH SALES CHARGE MSCI EAFE INDEX WORLD EX US INDEX - -------------------- ----------------- --------------- ----------------- 09/95 10000 9425 10000 10000 10243 9654 10195 10171 10129 9547 9921 9899 10332 9738 10197 10132 10583 9974 10607 10532 10721 10104 10651 10677 10721 10104 10687 10677 11117 10478 10914 10875 11539 10875 11231 11205 11724 11050 11025 11037 11935 11249 11086 11093 11319 10669 10763 10725 11497 10836 10786 10788 11789 11111 11073 11055 11724 11050 10960 10945 12178 11478 11397 11367 12339 11629 11250 11235 12330 11621 10856 11029 12678 11949 11034 11231 12802 12066 11074 11207 13104 12351 11132 11301 13860 13063 11857 12000 14519 13684 12510 12662 14954 14094 12713 12918 13797 13004 11763 11901 14741 13893 12422 12545 13718 12929 11467 11477 13656 12871 11350 11334 13754 12963 11449 11464 13864 13067 11972 11807 14427 13598 12740 12595 14919 14061 13133 13030 15291 14411 13237 13124 15502 14610 13172 12887 15551 14657 13272 12838 15641 14742 13406 12960 13513 12736 11745 11132 12800 12064 11384 10897 13835 13039 12570 12039 14799 13948 13214 12686 15520 14627 13735 13124 15992 15072 13694 13109 15600 14703 13368 12816 16002 15082 13925 13434 16495 15547 14489 14106 15913 14998 13743 13443 16726 15764 14279 14062 17408 16407 14703 14392 17790 16767 14757 14442 18161 17117 14906 14541 19146 18045 15465 15082 21556 20317 16002 15685 24509 23100 17439 17181 23338 21996 16332 16248 24885 23454 16771 16687 24477 23070 17422 17314 22445 21155 16505 16348 20706 19515 16103 15930 21565 20325 16732 16608 20578 19394 16031 15952 21201 19982 16171 16150 19891 18747 15383 15254 19000 17907 15020 14769 18141 17098 14457 14106 18963 17872 14970 14587 18860 17776 14962 14805 17846 16820 13840 13633 16613 15657 12917 12669 17639 16625 13815 13530 17369 16371 13327 13157 16805 15839 12782 12652 16254 15319 12549 12371 15945 15028 12232 12064 14366 13540 10993 10784 14764 13915 11274 11086 15111 14242 11690 11593 15460 14571 11759 11742 14778 13929 11135 11240 14882 14026 11213 11321 15575 14680 11873 11983 15653 14753 11897 12013 15808 14899 12048 12144 15385 14500 11569 11619 14061 13253 10427 10486 13934 13132 10403 10487 12507 11788 9286 9376 12961 12215 9784 9878 13374 12605 10228 10353 12974 12228 9885 10019 12393 11680 9472 9667 12212 11510 9256 9471 12122 11425 9074 9287 12961 12215 9963 10183 13671 12885 10567 10831 13915 13115 10823 11131 14290 13468 11085 11427 14638 13797 11352 11768 15038 14173 11702 12097 15928 15012 12431 12881 16083 15158 12707 13162 17154 16168 13699 14166 17502 16496 13892 14394 17721 16702 14213 14760 17889 16861 14293 14852 17412 16411 13970 14390 17218 16228 14017 14436 17540 16532 14324 14749 16856 15887 13859 14320 16831 15863 13920 14434 17127 16142 14283 14899 17682 16665 14770 15418 18793 17712 15779 16488 19443 18325 16471 17195 18978 17887 16170 16899 19779 18642 16868 17732 19300 18191 16445 17252 18965 17874 16059 16826 18874 17788 16067 16932 19028 17934 16280 17250 19635 18506 16780 17886 08/05 20339 19175 17207 18346 The chart above shows the growth in value of a hypothetical $10,000 investment in Class A shares of Columbia International Stock Fund during the stated time period, and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The Morgan Stanley Capital International (MSCI) All Country (AC) World ex US Index is an unmanaged index of global stock market performance that includes developed and emerging markets but excludes the US. The Morgan Stanley Capital International (MSCI) Europe, Australasia, Far East (EAFE) Index is a free float-adjusted market capitalization index that is designed to measure developed market equity performance, excluding the US and Canada. Unlike mutual funds, 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. AVERAGE ANNUAL TOTAL RETURN AS OF 08/31/05 (%)
SHARE CLASS A B C D G Z - ------------------------------------------------------------------------------------------------------------ INCEPTION DATE 11/01/02 11/01/02 10/13/03 11/01/02 03/18/05 10/01/92 - ------------------------------------------------------------------------------------------------------------ SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT - ------------------------------------------------------------------------------------------------------------ 1-year 20.89 13.94 19.98 14.98 19.98 18.98 19.91 18.91 19.98 14.98 21.20 - ------------------------------------------------------------------------------------------------------------ 5-year -0.82 -1.99 -1.32 -1.66 -1.25 -1.25 -1.18 -1.38 -1.32 -1.82 -0.55 - ------------------------------------------------------------------------------------------------------------ 10-year 7.36 6.73 7.09 7.09 7.13 7.13 7.16 7.06 7.09 7.09 7.50
AVERAGE ANNUAL TOTAL RETURN AS OF 06/30/05 (%)
SHARE CLASS A B C D G Z - ------------------------------------------------------------------------------------------------------------ SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT - ------------------------------------------------------------------------------------------------------------ 1-year 8.49 2.25 7.70 2.70 7.68 6.68 7.65 6.65 7.70 2.70 8.77 - ------------------------------------------------------------------------------------------------------------ 5-year -2.48 -3.62 -2.93 -3.26 -2.87 -2.87 -2.80 -2.99 -2.93 -3.42 -2.22 - ------------------------------------------------------------------------------------------------------------ 10-year 7.15 6.51 6.89 6.89 6.93 6.93 6.97 6.86 6.89 6.89 7.29
THE "WITH SALES CHARGE" RETURNS INCLUDE THE MAXIMUM INITIAL SALES CHARGE OF 5.75% FOR CLASS A SHARES, MAXIMUM CONTINGENT DEFERRED SALES CHARGE OF 5.00% FOR CLASS B AND G SHARES AND 1.00% FOR CLASS C AND D SHARES FOR THE FIRST YEAR ONLY. THE "WITHOUT SALES CHARGE" RETURNS DO NOT INCLUDE THE EFFECT OF SALES CHARGES. IF THEY HAD, RETURNS WOULD HAVE BEEN LOWER. 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. All results shown assume reinvestment of distributions. Class Z shares are sold at net asset value with no Rule 12b-1 fees. Class Z shares have limited eligibility and the investment minimum requirement may vary. Please see the fund's prospectus for details. Performance for different share classes will vary based on differences in sales charges and fees associated with each class. Effective October 13, 2003, class D shares are closed to all new investors and new accounts. Existing class D shareholders will be able to make additional purchases at any time. In addition, the class D sales charge of 1.00% is waived after October 13, 2003. 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. The returns for Class C include the returns of Class B prior to 10/13/03, the date on which class C was initially offered by the fund. The returns shown for Class C also include the performance of Class Z prior to the inception of Class B (11/01/02). Class G performance information includes returns of the fund's Class B shares for the period from 11/01/02 through 03/18/05 and for periods prior thereto, the fund's Class Z shares. 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, C, D, and G would have been lower. 2 UNDERSTANDING YOUR EXPENSES ____________________________________________________ COLUMBIA INTERNATIONAL STOCK FUND ESTIMATING YOUR ACTUAL EXPENSES To estimate the expenses that you paid over the period, first you will need your account balance at the end of the period: o FOR SHAREHOLDERS WHO RECEIVE THEIR ACCOUNT STATEMENTS FROM COLUMBIA MANAGEMENT SERVICES, INC., YOUR ACCOUNT BALANCE IS AVAILABLE ONLINE AT WWW.COLUMBIAFUNDS.COM OR BY CALLING SHAREHOLDER SERVICES AT 800.345.6611 o FOR SHAREHOLDERS WHO RECEIVE THEIR ACCOUNT STATEMENTS FROM THEIR BROKERAGE FIRM, CONTACT YOUR BROKERAGE FIRM TO OBTAIN YOUR ACCOUNT BALANCE 1. DIVIDE YOUR ENDING ACCOUNT BALANCE BY $1,000. FOR EXAMPLE, IF AN ACCOUNT BALANCE WAS $8,600 AT THE END OF THE PERIOD, THE RESULT WOULD BE 8.6 2. IN THE SECTION OF THE TABLE BELOW TITLED "EXPENSES PAID DURING THE PERIOD," LOCATE THE AMOUNT FOR YOUR SHARE CLASS. YOU WILL FIND THIS NUMBER IS IN THE COLUMN LABELED "ACTUAL." MULTIPLY THIS NUMBER BY THE RESULT FROM STEP 1. YOUR ANSWER IS AN ESTIMATE OF THE EXPENSES YOU PAID ON YOUR ACCOUNT DURING THE PERIOD As a fund shareholder, you incur two types of costs. There are transaction costs, which generally include sales charges on purchases and may include redemption or exchange fees. There are also ongoing costs, which generally include investment advisory fees, Rule 12b-1 fees and other fund expenses. The information on this page is intended to help you understand your ongoing costs of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. ANALYZING YOUR FUND'S EXPENSES BY SHARE CLASS To illustrate these ongoing costs, we have provided an example and calculated the expenses paid by investors in each share class during the reporting period. The information in the following table is based on an initial investment of $1,000, which is invested at the beginning of the reporting period and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the "actual" column is calculated using the fund's actual operating expenses and total return for the period. The amount listed in the "hypothetical" column for each share class assumes that the return each year is 5% before expenses and includes the fund's actual expense ratio. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during this reporting period. 03/01/05 - 08/31/05
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID FUND'S ANNUALIZED BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($) EXPENSE RATIO (%) - ---------------------------------------------------------------------------------------------------------------- ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL - ---------------------------------------------------------------------------------------------------------------- Class A 1,000.00 1,000.00 1,028.68 1,019.00 6.29 6.26 1.23 - ---------------------------------------------------------------------------------------------------------------- Class B 1,000.00 1,000.00 1,024.70 1,015.22 10.10 10.06 1.98 - ---------------------------------------------------------------------------------------------------------------- Class C 1,000.00 1,000.00 1,025.21 1,015.22 10.11 10.06 1.98 - ---------------------------------------------------------------------------------------------------------------- Class D 1,000.00 1,000.00 1,024.50 1,015.22 10.10 10.06 1.98 - ---------------------------------------------------------------------------------------------------------------- Class G 1,000.00 1,000.00 1,024.72 1,015.48 8.99 9.80 1.93 - ---------------------------------------------------------------------------------------------------------------- Class Z 1,000.00 1,000.00 1,030.60 1,020.27 5.02 4.99 0.98
Expenses paid during the period are equal to the fund's annualized expense ratio, multiplied by the average account value over the period, then multiplied by the number of days in the fund's most recent fiscal half-year and divided by 365. Class G commenced operation on March 18, 2005. Had the Fund's Transfer Agent not waived a portion of expenses, total return would have been reduced. It is important to note that the expense amounts shown in the table are meant to highlight only ongoing costs of investing in the fund and do not reflect any transactional costs, such as sales charges, redemption or exchange fees. Therefore, the hypothetical examples provided may not help you determine the relative total costs of owning different funds. If these transactional costs were included, your costs would have been higher. COMPARE WITH OTHER FUNDS Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the fund with other funds. To do so, compare the 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the continuing cost of investing in a fund and do not reflect any transactional costs, such as sales charges or redemption or exchange fees. 3 PORTFOLIO MANAGERS' REPORT _____________________________________________________ COLUMBIA INTERNATIONAL STOCK FUND (sidebar) PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT PERFORMANCE MAY BE LOWER OR HIGHER. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. PLEASE VISIT WWW.COLUMBIAFUNDS.COM FOR DAILY AND MOST RECENT MONTH-END PERFORMANCE UPDATES. SUMMARY o FOR THE 12-MONTH PERIOD ENDED AUGUST 31, 2005, THE FUND'S CLASS A SHARES RETURNED 20.89% WITHOUT SALES CHARGE. o STEADY ECONOMIC GROWTH AND RISING CORPORATE PROFITS HELPED THE FUND, ITS BENCHMARK AND PEER GROUP ACHIEVE STRONG, DOUBLE-DIGIT RETURNS FOR THE PERIOD. o THE FUND'S ABOVE-INDEX WEIGHT IN ENERGY AIDED PERFORMANCE AS ENERGY WAS THE PERIOD'S BEST-PERFORMING SECTOR. STOCK SELECTION IN THE UNITED KINGDOM AND AUSTRALIA DETRACTED FROM THE FUND'S RETURN RELATIVE TO ITS BENCHMARK. [UP ARROW] [UP ARROW] CLASS A SHARES MSCI EAFE INDEX 20.89% 23.58% THE MORGAN STANLEY CAPITAL INTERNATIONAL (MSCI) EUROPE, AUSTRALASIA, FAR EAST (EAFE) INDEX IS A FREE FLOAT-ADJUSTED MARKET CAPITALIZATION INDEX THAT IS DESIGNED TO MEASURE DEVELOPED MARKET EQUITY PERFORMANCE, EXCLUDING THE US AND CANADA. OBJECTIVE Seeks long-term capital appreciation by investing in stocks issued by companies from at least three countries outside the United States. TOTAL NET ASSETS $1,053.4 million For the 12-month period ended August 31, 2005, Columbia International Stock Fund class A shares returned 20.89% without sales charge. The MSCI EAFE Index, the fund's benchmark, returned 23.58%. The average return of the fund's peer group, the Lipper International Multi-Cap Growth Fund Category, was 24.53% for the same period. 1 The fund's above-index weight in energy helped it achieve its strong return. Energy was the best-performing sector for the period. Stock selection in the United Kingdom and Australia detracted from its return relative to its benchmark. ENERGY STOCKS DROVE FUND'S PERFORMANCE With oil prices rising approximately 70% during the 12 months, a larger-than-index weight in energy was the best performing position in the portfolio. OMV AG, an Austria-based oil and gas producer, and Canada's EnCana, the largest oil and gas exploration company in North America, were two of the fund's top performing energy stocks. EMPHASIZED COMPANIES WITH RISING DIVIDENDS AND CAPITAL EXPENDITURES We emphasized companies that we believed were likely to raise their dividend payouts and/or benefit from capital expenditures. As a result, the fund was overweight in industrials relative to the index. Vinci SA, a French construction company, was one of the best performers in the portfolio. We also added ABB in Switzerland, a manufacturer of equipment used by utilities. For several years investors avoided ABB, as the company was under the strain of asbestos litigation. At the time we purchased the stock, it was selling at a significant discount to its peers. Over the past year, ABB has benefited from strong global trends, such as the building and upgrading of utilities around the world. We also invested in Veolia Environnement, a French utility that provides water and waste management services to the United States and Europe. The company has reaped the rewards of a significant restructuring program, which has included cost cutting and debt reduction. RAISED EXPOSURE TO SINGAPORE AND HONG KONG Because Singapore's economy appeared to be more resilient than other developed economies, we significantly boosted investment in the country. We felt that consumers were poised to boost spending and believed that many companies had the potential to increase their earnings and dividend payouts. In addition, valuations were attractive. Companies in Singapore were some of the best performers in the portfolio. We also raised exposure to Hong Kong, an area that benefited from a stronger economy and a particularly vibrant real estate sector. We sold long-term holdings Erste Bank der Oesterreichischen Sparkassen in Austria and Alpha Bank in Greece. Both had been portfolio leaders, but they face increased competition. We became concerned that they would not be able to sustain their high level of earnings growth. 1 Lipper Inc., a widely respected data provider in the industry, calculates an average total return (assuming reinvestment of distributions) for mutual funds with investment objectives similar to those of the fund. Lipper makes no adjustment for the effect of sales loads. 4 ________________________________________________________________________________ COLUMBIA INTERNATIONAL STOCK FUND (Sidebar) NET ASSET VALUE PER SHARE AS OF 08/31/05 ($) Class A 15.76 - ----------------------------------------- Class B 15.37 - ----------------------------------------- Class C 15.43 - ----------------------------------------- Class D 15.48 - ----------------------------------------- Class G 15.37 - ----------------------------------------- Class Z 15.85 DISTRIBUTIONS DECLARED PER SHARE 09/01/04 - 08/31/05 ($) Class A 0.00 - ----------------------------------------- Class B 0.00 - ----------------------------------------- Class C 0.00 - ----------------------------------------- Class D 0.00 - ----------------------------------------- Class G 0.00 - ----------------------------------------- Class Z 0.07 TOP 5 COUNTRIES AS OF 08/31/05 (%) United Kingdom 24.9 - ----------------------------------------- Japan 23.0 - ----------------------------------------- France 9.5 - ----------------------------------------- Germany 7.9 - ----------------------------------------- Switzerland 6.7 TOP 10 HOLDINGS AS OF 08/31/05 (%) Vodafone Group 2.6 - ----------------------------------------- Nestle SA 2.3 - ----------------------------------------- Total SA 1.9 - ----------------------------------------- GlaxoSmithKline 1.8 - ----------------------------------------- HSBC Holdings 1.6 - ----------------------------------------- Toyota Motor 1.5 - ----------------------------------------- BP ADR 1.5 - ----------------------------------------- AstraZeneca 1.4 - ----------------------------------------- Royal Bank of Scotland 1.3 - ----------------------------------------- BP 1.2 HOLDINGS DISCUSSED IN THIS REPORT AS OF 08/31/05 (%) OMV AG 0.7 - ----------------------------------------- EnCana 0.7 - ----------------------------------------- Vinci SA 1.2 - ----------------------------------------- ABB 0.4 - ----------------------------------------- Veolia Environnement 1.1 Your fund is actively managed and the composition of its portfolio will change over time. Information provided is calculated as a percentage of net assets. REDUCED EXPOSURE TO COMMODITY STOCKS DETRACTED FROM PERFORMANCE We reduced exposure to the metals and mining sector early in the period because of concerns that stock valuations were excessive and company profit margins were set to decline as capital expenditures increased. Unfortunately, we were premature in our assessment of the metals and mining area, as the continued strong global demand for commodities resulted in both higher product prices and stock prices. As a result, our underweight in metals and mining stocks held back the fund's return. SEEKING NEW OPPORTUNITIES WHILE MAINTAINING CURRENT PORTFOLIO THEMES We plan to continue to seek out opportunities among large companies that have the potential to increase their dividend payouts and to maintain our emphasis on companies that should benefit from capital spending. Despite forecasts for slower economic growth in Europe, we believe there are opportunities in markets where valuations are attractive. Germany looks poised to benefit from continued global industrial production growth and further corporate restructuring plans. The German market is trading at 12 times next year's estimated earnings per share, which is attractive relative to the MSCI Europe Index, which is trading at 14 times earnings. We are also optimistic about Japan's prospects. Economic data, such as rising consumer confidence and strong industrial production numbers, could bode well for Japan. In addition, we expect ongoing political and economic restructuring efforts to boost investor confidence in the Japanese market. Penelope L. Burgess has co-managed the fund since July 2004 and has been with the advisor or its predecessors or affiliate organizations since 1993. /s/ Penelope L. Burgess Deborah F. Snee has co-managed the fund since July 2004 and has been with the advisor or its predecessors or affiliate organizations since 1999. /s/ Deborah F. Snee Equity investments are affected by stock market fluctuations that occur in response to economic and business developments. International investing may involve certain risks, including foreign taxation, currency fluctuations, risks associated with possible differences in financial standards and other monetary and political risks. 5 PERFORMANCE INFORMATION ________________________________________________________ COLUMBIA MID CAP GROWTH FUND (Sidebar) PERFORMANCE OF A $10,000 INVESTMENT 09/01/95 - 08/31/05 ($) SALES CHARGE WITHOUT WITH - ----------------------------------------- Class A 21,495 20,255 - ----------------------------------------- Class B 21,039 21,039 - ----------------------------------------- Class C 21,087 21,087 - ----------------------------------------- Class D 21,058 20,852 - ----------------------------------------- Class G 20,981 20,981 - ----------------------------------------- Class T 21,534 20,292 - ----------------------------------------- Class Z 21,737 n/a PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT PERFORMANCE MAY BE LOWER OR HIGHER. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. PLEASE VISIT WWW.COLUMBIAFUNDS.COM FOR DAILY AND MOST RECENT MONTH-END PERFORMANCE UPDATES. GROWTH OF A $10,000 INVESTMENT 09/01/95 - 08/31/05 [MOUNTAIN CHART] CLASS A SHARES CLASS A SHARES RUSSELL MIDCAP RUSSELL MIDCAP WITHOUT SALES CHARGE WITH SALES CHARGE GROWTH INDEX INDEX - -------------------- ----------------- -------------- -------------- 09/95 10000 9425 10000 10000 10159 9575 10223 10226 9736 9177 9964 9997 10262 9672 10410 10494 10434 9834 10415 10555 10355 9760 10599 10777 10817 10195 11000 11031 11080 10443 11087 11191 12048 11356 11622 11507 12389 11677 11859 11681 11679 11008 11501 11506 10536 9930 10609 10794 11179 10536 11183 11307 11611 10944 11893 11866 11285 10636 11754 11961 11912 11228 12446 12689 11797 11119 12237 12560 12077 11382 12778 13030 11887 11203 12497 13010 11310 10660 11791 12457 11227 10581 12079 12767 12279 11573 13162 13699 12676 11948 13526 14147 13390 12620 14821 15327 13349 12581 14676 15160 13996 13191 15418 16026 13182 12424 14646 15402 13319 12553 14800 15769 13289 12525 14993 16204 12934 12191 14724 15900 13761 12970 16108 17143 14633 13792 16782 17955 14588 13749 17011 18000 14207 13390 16312 17444 14437 13607 16773 17687 13453 12679 16055 16843 11767 11091 12990 14148 12587 11864 13972 15063 13112 12358 15001 16091 13715 12927 16013 16852 15501 14610 17672 17839 15187 14313 18202 17809 13934 13132 17312 17216 14328 13504 18277 17755 14794 13943 19110 19067 14834 13981 18864 19012 15870 14958 20180 19683 15456 14567 19538 19142 15167 14295 19335 18646 15376 14492 19171 17989 16302 15365 20653 18842 18317 17264 22792 19385 21132 19917 26740 21091 21492 20256 26735 20393 27621 26033 32354 21961 27176 25614 32387 23219 24521 23111 29242 22121 23180 21847 27110 21535 25751 24270 29987 22172 24733 23311 28089 21924 28194 26573 32324 24024 27602 26014 30744 23680 25675 24199 28641 23316 21955 20692 22417 21217 24060 22677 23598 22832 23644 22284 24946 23200 20986 19780 20630 21787 19181 18079 17678 20436 21015 19807 20625 22183 20673 19484 20528 22596 20292 19126 20538 22383 19552 18427 19154 21743 18441 17381 17765 20906 16357 15417 14829 18385 16949 15975 16387 19113 18338 17283 18152 20715 19011 17917 18842 21547 18370 17314 18230 21418 17545 16536 17196 21191 18582 17514 18508 22462 18106 17065 17529 22027 17815 16790 17007 21778 16584 15630 15129 20319 15313 14433 13659 18336 14955 14095 13611 18436 14296 13474 12530 16735 14693 13848 13501 17580 15110 14241 14558 18800 14325 13501 13679 18059 14325 13501 13545 17694 13995 13190 13427 17461 14082 13272 13677 17634 14790 13940 14608 18914 16061 15137 16013 20644 16322 15384 16242 20853 16672 15713 16822 21541 17545 16537 17749 22476 16605 15650 17405 22195 17943 16912 18808 23889 18439 17378 19312 24560 18603 17533 19522 25297 19001 17908 20167 26033 18942 17853 20505 26592 18749 17671 20466 26598 17847 16821 19889 25622 18079 17039 20359 26257 18496 17433 20682 26984 16848 15880 19313 25805 16479 15532 19076 25916 17178 16190 19787 26758 17877 16849 20458 27497 18973 17882 21514 29171 19886 18742 22544 30414 19528 18405 21940 29660 19975 18826 22495 30576 19354 18241 22166 30335 18326 17272 21289 29367 19790 18652 22509 30774 20131 18973 22927 31602 21401 20170 24264 33267 08/05 21495 20255 24114 33035 The chart above shows the growth in value of a hypothetical $10,000 investment in Class A shares of Columbia Mid Cap Growth Fund during the stated time period, and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. 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. The Russell Midcap Index is an unmanaged index that measures the performance of the 800 smallest companies in the Russell 1000 Index, as ranked by total market capitalization. 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. AVERAGE ANNUAL TOTAL RETURN AS OF 08/31/05 (%)
SHARE CLASS A B C D G T Z - ----------------------------------------------------------------------------------------------------------------------------- INCEPTION 11/01/02 11/01/02 10/13/03 11/01/02 11/01/02 11/01/02 11/20/85 - ----------------------------------------------------------------------------------------------------------------------------- SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT - ----------------------------------------------------------------------------------------------------------------------------- 1-year 30.43 22.93 29.49 24.49 29.48 28.48 29.46 28.46 29.52 24.52 30.36 22.86 30.75 - ----------------------------------------------------------------------------------------------------------------------------- 5-year -5.28 -6.40 -5.69 -5.96 -5.64 -5.64 -5.67 -5.86 -5.74 -6.16 -5.25 -6.37 -5.07 - ----------------------------------------------------------------------------------------------------------------------------- 10-year 7.95 7.31 7.72 7.72 7.75 7.75 7.73 7.63 7.69 7.69 7.97 7.33 8.07
AVERAGE ANNUAL TOTAL RETURN AS OF 06/30/05 (%)
SHARE CLASS A B C D G T Z - ----------------------------------------------------------------------------------------------------------------------------- SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT - ----------------------------------------------------------------------------------------------------------------------------- 1- year 8.81 2.55 8.02 3.02 8.00 7.00 8.01 7.01 8.10 3.10 8.79 2.51 9.10 - ----------------------------------------------------------------------------------------------------------------------------- 5- year -4.81 -5.93 -5.19 -5.47 -5.15 -5.15 -5.17 -5.36 -5.24 -5.65 -4.77 -5.89 -4.60 - ----------------------------------------------------------------------------------------------------------------------------- 10-Year 8.21 7.57 8.00 8.00 8.02 8.02 8.01 7.90 7.97 7.97 8.23 7.60 8.33
THE "WITH SALES CHARGE" RETURNS INCLUDE THE MAXIMUM INITIAL SALES CHARGE OF 5.75% FOR CLASS A AND T SHARES, MAXIMUM CONTINGENT DEFERRED SALES CHARGE OF 5.00% FOR CLASS B AND G SHARES AND 1.00% FOR CLASS C AND D SHARES FOR THE FIRST YEAR ONLY. THE "WITHOUT SALES CHARGE" RETURNS DO NOT INCLUDE THE EFFECT OF SALES CHARGES. IF THEY HAD, RETURNS WOULD HAVE BEEN LOWER. 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. All results shown assume reinvestment of distributions. Class Z shares are sold at net asset value with no Rule 12b-1 fees. Class Z shares have limited eligibility and the investment minimum requirement may vary. Please see the fund's prospectus for details. Performance for different share classes will vary based on differences in sales charges and fees associated with each class. Effective October 13, 2003, class D shares are closed to all new investors and new accounts. Existing class D shareholders will be able to make additional purchases at any time. In addition, the class D sales charge of 1.00% is waived after October 13, 2003. 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. The returns for class C include the returns of class B prior to 10/13/03, the date on which class C was initially offered by the fund. The returns shown for class C also include the performance of class Z prior to the inception of class B (11/01/02). 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, C, D, G and T would have been lower. 6 UNDERSTANDING YOUR EXPENSES ____________________________________________________ COLUMBIA MID CAP GROWTH FUND ESTIMATING YOUR ACTUAL EXPENSES To estimate the expenses that you paid over the period, first you will need your account balance at the end of the period: o FOR SHAREHOLDERS WHO RECEIVE THEIR ACCOUNT STATEMENTS FROM COLUMBIA MANAGEMENT SERVICES, INC., YOUR ACCOUNT BALANCE IS AVAILABLE ONLINE AT WWW.COLUMBIAFUNDS.COM OR BY CALLING SHAREHOLDER SERVICES AT 800.345.6611 o FOR SHAREHOLDERS WHO RECEIVE THEIR ACCOUNT STATEMENTS FROM THEIR BROKERAGE FIRM, CONTACT YOUR BROKERAGE FIRM TO OBTAIN YOUR ACCOUNT BALANCE 1. DIVIDE YOUR ENDING ACCOUNT BALANCE BY $1,000. FOR EXAMPLE, IF AN ACCOUNT BALANCE WAS $8,600 AT THE END OF THE PERIOD, THE RESULT WOULD BE 8.6 2. IN THE SECTION OF THE TABLE BELOW TITLED "EXPENSES PAID DURING THE PERIOD," LOCATE THE AMOUNT FOR YOUR SHARE CLASS. YOU WILL FIND THIS NUMBER IS IN THE COLUMN LABELED "ACTUAL." MULTIPLY THIS NUMBER BY THE RESULT FROM STEP 1. YOUR ANSWER IS AN ESTIMATE OF THE EXPENSES YOU PAID ON YOUR ACCOUNT DURING THE PERIOD As a fund shareholder, you incur two types of costs. There are transaction costs, which generally include sales charges on purchases and may include redemption or exchange fees. There are also ongoing costs, which generally include investment advisory fees, Rule 12b-1 fees and other fund expenses. The information on this page is intended to help you understand your ongoing costs of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. ANALYZING YOUR FUND'S EXPENSES BY SHARE CLASS To illustrate these ongoing costs, we have provided an example and calculated the expenses paid by investors in each share class during the reporting period. The information in the following table is based on an initial investment of $1,000, which is invested at the beginning of the reporting period and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the "actual" column is calculated using the fund's actual operating expenses and total return for the period. The amount listed in the "hypothetical" column for each share class assumes that the return each year is 5% before expenses and includes the fund's actual expense ratio. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during this reporting period. 03/01/05 - 08/31/05
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID FUND'S ANNUALIZED BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($) EXPENSE RATIO (%) - ---------------------------------------------------------------------------------------------------------------- ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL - ---------------------------------------------------------------------------------------------------------------- Class A 1,000.00 1,000.00 1,076.32 1,019.21 6.23 6.06 1.19 - ---------------------------------------------------------------------------------------------------------------- Class B 1,000.00 1,000.00 1,072.19 1,015.43 10.13 9.86 1.94 - ---------------------------------------------------------------------------------------------------------------- Class C 1,000.00 1,000.00 1,072.49 1,015.43 10.13 9.86 1.94 - ---------------------------------------------------------------------------------------------------------------- Class D 1,000.00 1,000.00 1,072.09 1,015.43 10.13 9.86 1.94 - ---------------------------------------------------------------------------------------------------------------- Class G 1,000.00 1,000.00 1,072.39 1,015.68 9.87 9.60 1.89 - ---------------------------------------------------------------------------------------------------------------- Class T 1,000.00 1,000.00 1,076.12 1,018.95 6.49 6.31 1.24 - ---------------------------------------------------------------------------------------------------------------- Class Z 1,000.00 1,000.00 1,077.38 1,020.47 4.92 4.79 0.94
Expenses paid during the period are equal to the fund's annualized expense ratio, multiplied by the average account value over the period, then multiplied by the number of days in the fund's most recent fiscal half-year and divided by 365. Had the Fund's Transfer Agent not waived a portion of expenses, total return would have been reduced. It is important to note that the expense amounts shown in the table are meant to highlight only ongoing costs of investing in the fund and do not reflect any transactional costs, such as sales charges, redemption or exchange fees. Therefore, the hypothetical examples provided may not help you determine the relative total costs of owning different funds. If these transactional costs were included, your costs would have been higher. COMPARE WITH OTHER FUNDS Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the fund with other funds. To do so, compare the 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the continuing cost of investing in a fund and do not reflect any transactional costs, such as sales charges or redemption or exchange fees. 7 PORTFOLIO MANAGER'S REPORT _____________________________________________________ COLUMBIA MID CAP GROWTH FUND (Sidebar) PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT PERFORMANCE MAY BE LOWER OR HIGHER. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. PLEASE VISIT WWW.COLUMBIAFUNDS.COM FOR DAILY AND MOST RECENT MONTH-END PERFORMANCE UPDATES. SUMMARY o FOR THE 12-MONTH PERIOD ENDED AUGUST 31, 2005, THE FUND'S CLASS A SHARES RETURNED 30.43% WITHOUT SALES CHARGE. o THE FUND'S PERFORMANCE SURPASSED THE RETURNS OF THE RUSSELL MIDCAP GROWTH INDEX AND THE RUSSELL MIDCAP INDEX AND THE AVERAGE RETURN OF ITS PEER GROUP, THE LIPPER MID-CAP GROWTH FUNDS CATEGORY. o STRONG STOCK SELECTION CONTRIBUTED TO THE FUND'S OUTPERFORMANCE FOR THE REPORTING PERIOD. [UP ARROW] [UP ARROW] [UP ARROW] RUSSELL RUSSELL CLASS A MIDCAP MIDCAP SHARES GROWTH INDEX INDEX 30.43% 26.45% 27.47% 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. THE RUSSELL MIDCAP INDEX IS AN UNMANAGED INDEX THAT MEASURES THE PERFORMANCE OF THE 800 SMALLEST COMPANIES IN THE RUSSELL 1000 INDEX, AS RANKED BY TOTAL MARKET CAPITALIZATION. OBJECTIVE Seeks significant capital appreciation by investing in stocks of companies with a market capitalization, at the time of initial purchase, equal to or less than the largest stock in the Russell Midcap Index. TOTAL NET ASSETS $841.8 million For the 12-month period ended August 31, 2005, Columbia Mid Cap Growth Fund class A shares returned 30.43% without sales charge. The fund outperformed both the Russell Midcap Growth Index and the Russell Midcap Index, which returned 26.45% and 27.47%, respectively, during the same period. The fund also topped the 24.05% average return of its peer group, the Lipper Mid-Cap Growth Funds Category. 1 Strong stock selection drove the fund's outperformance. TECHNOLOGY MADE STRONGEST CONTRIBUTION Within the information technology sector, we restructured the portfolio last summer to eliminate commodity-type businesses in favor of those with greater intellectual property content, as reflected in companies with higher gross margins. These changes were key to the sector's significant contribution during this reporting period. Marvell Technology Group, levered to markets characterized by massive unit numbers, such as transceivers, power management and storage, was among the fund's top performers. NVIDIA, with its high-end graphics processing chips, and Broadcom, whose chips are used in the communications and networking markets, also performed well. Cognizant Technology Solutions, an IT services provider and a long-time holding, continued to increase earnings as corporations capitalized on the large, technically-skilled, English-speaking workforce in India. ENERGY, MATERIALS BENEFITED FROM STRONG PRICING The energy sector was a solid contributor to fund performance as oil and natural gas prices continued their strong rise. The fund's energy holdings outperformed the Russell Midcap Growth Index, and we maintained an overweight position in the sector. Standout performers included exploration and production companies XTO Energy and EOG Resources. Similarly, a favorable pricing environment for commodities helped the fund's holdings in the materials sector. Potash Corp. of Saskatchewan benefited from demand for fertilizer, and Peabody Energy advanced as higher oil and gas prices made coal a relatively more attractive energy source. RETAILERS LED CONSUMER DISCRETIONARY NAMES Strong stock selection in the consumer discretionary sector had a positive impact on performance. Chico's FAS and Coach both made significant contributions for the reporting period and have been a core part of the fund's retail holdings since July 2004. We believe these stocks represent good long-term growth vehicles because each company has demonstrated the potential to open new stores and make efficient use of technology to reach customers and control costs. Furthermore, they serve an affluent demographic group that tends to be less sensitive to changes in the economic environment. 1 Lipper Inc., a widely respected data provider in the industry, calculates an average total return (assuming reinvestment of distributions) for mutual funds with investment objectives similar to those of the fund. Lipper makes no adjustment for the effect of sales loads. 8 ________________________________________________________________________________ COLUMBIA MID CAP GROWTH FUND (Sidebar) NET ASSET VALUE PER SHARE AS OF 08/31/05 ($) Class A 22.16 - ----------------------------------------- Class B 21.69 - ----------------------------------------- Class C 21.74 - ----------------------------------------- Class D 21.71 - ----------------------------------------- Class G 21.63 - ----------------------------------------- Class T 22.20 - ----------------------------------------- Class Z 22.41 TOP 5 SECTORS AS OF 08/31/05 (%) Consumer discretionary 19.7 - ----------------------------------------- Information technology 19.4 - ----------------------------------------- Health care 17.6 - ----------------------------------------- Industrials 12.9 - ----------------------------------------- Energy 10.9 TOP 10 HOLDINGS AS OF 08/31/05 (%) Marvell Technology Group 2.0 - ----------------------------------------- XM Satellite Radio Holdings 1.8 - ----------------------------------------- Broadcom 1.8 - ----------------------------------------- Potash Corp. of Saskatchewan 1.8 - ----------------------------------------- Corporate Executive Board 1.7 - ----------------------------------------- Chico's FAS 1.7 - ----------------------------------------- American Tower 1.5 - ----------------------------------------- Tempur-Pedic International 1.3 - ----------------------------------------- Robert Half International 1.3 - ----------------------------------------- Urban Outfitters 1.2 HOLDINGS DISCUSSED IN THIS REPORT AS OF 08/31/05 (%) Marvell Technology Group 2.0 - ----------------------------------------- NVIDIA 0.4 - ----------------------------------------- Broadcom 1.8 - ----------------------------------------- Cognizant Technology Solutions 1.0 - ----------------------------------------- XTO Energy 1.1 - ----------------------------------------- EOG Resources 1.1 - ----------------------------------------- Potash Corp. of Saskatchewan 1.8 - ----------------------------------------- Peabody Energy 0.7 - ----------------------------------------- Chico's FAS 1.7 - ----------------------------------------- Coach 1.1 - ----------------------------------------- Urban Outfitters 1.2 Your fund is actively managed and the composition of its portfolio will change over time. Information provided is calculated as a percentage of net assets. ROOM FOR IMPROVEMENT IN HEALTH CARE, FINANCIALS Although no sectors posted a loss for the reporting period, the fund experienced relative weakness in certain areas, primarily in the health care and financial sectors. In health care, the fund's holdings slightly underperformed as they could not overcome the loss sustained when Elan Pharmaceuticals pulled Tysabri off the market shortly after its launch. Tysabri is a new drug for the treatment of multiple sclerosis. We sold the stock at a substantial loss. In the financials sector, the fund was hurt by not owning--or not owning enough of--some of the sector's best performers. PORTFOLIO POSITIONED FOR CONTINUED GROWTH We continue to believe that the economy has the potential to keep growing at a healthy rate, and the portfolio is positioned accordingly. We remain bullish longer term on energy. Earnings are currently very strong in the materials and industrials sectors, but we are watchful for signs of decelerating growth. Finally, with interest rate increases likely winding down, we believe that traditional growth sectors--such as health care, technology and consumer discretionary--are poised to provide compelling returns. Kenneth A. Korngiebel has managed the fund since June 2004 and has been with the advisor or its predecessors or affiliate organizations since 1996. /s/ Kenneth A. Korngiebel Equity investments are affected by stock market fluctuations that occur in response to economic and business developments. Investing in mid-cap stocks may present special risks, including possible illiquidity and greater price volatility than stocks of larger, more established companies. 9 PERFORMANCE INFORMATION ________________________________________________________ COLUMBIA SMALL CAP GROWTH FUND I PERFORMANCE OF A $10,000 INVESTMENT 10/01/96 - 08/31/05 ($) Class Z 27,354 PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT PERFORMANCE MAY BE LOWER OR HIGHER. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. PLEASE VISIT WWW.COLUMBIAFUNDS.COM FOR DAILY AND MOST RECENT MONTH-END PERFORMANCE UPDATES. GROWTH OF A $10,000 INVESTMENT 10/01/96 - 08/31/05 [MOUNTAIN CHART] RUSSELL 2000 RUSSELL 2000 CLASS Z SHARES INDEX GROWTH INDEX -------------- ------------ ------------ 10/96 10000 10000 10000 10174 9876 9628 10488 10283 9896 10762 10552 10089 11508 10763 10341 10820 10503 9716 10224 10007 9030 10191 10035 8926 11475 11151 10267 12245 11629 10615 13098 12170 11159 13753 12449 11493 15021 13360 12411 14449 12774 11665 14201 12691 11387 14432 12913 11394 13817 12709 11242 14953 13648 12235 16261 14210 12748 16435 14288 12825 15247 13518 11893 15715 13547 12014 14978 12449 11011 11771 10032 8470 12854 10817 9329 12984 11258 9816 13720 11848 10577 15109 12582 11534 15030 12749 12054 13452 11716 10951 13678 11899 11340 14077 12965 12342 14381 13155 12362 15682 13749 13013 16089 13373 12611 15726 12878 12139 16002 12880 12374 17555 12933 12690 19965 13705 14032 24048 15257 16505 24250 15011 16352 30795 17489 20157 29560 16337 18039 26350 15353 16217 24885 14458 14796 28386 15719 16708 26206 15213 15276 29285 16374 16883 28067 15892 16044 26663 15183 14741 23453 13624 12064 25451 14794 12802 25767 15565 13838 22982 14544 11941 20994 13833 10856 23433 14915 12184 23600 15282 12467 23984 15809 12807 22785 14954 11715 21092 14471 10983 17835 12523 9210 19105 13255 10096 20452 14281 10939 21839 15163 11621 21249 15005 11207 20197 14594 10482 21535 15766 11393 20856 15909 11147 20089 15203 10494 18741 14449 9605 16203 12267 8128 16459 12236 8124 15751 11358 7538 16027 11722 7919 16942 12768 8704 16038 12057 8103 15988 11723 7883 15742 11369 7672 16056 11515 7788 17346 12607 8525 18950 13960 9486 19422 14212 9669 20141 15102 10400 21273 15794 10958 20624 15502 10681 22670 16804 11604 23191 17400 11982 23142 17753 12036 24519 18524 12668 24431 18691 12649 24136 18865 12709 22926 17902 12071 23321 18187 12311 24030 18953 12721 21817 17677 11578 20981 17587 11329 22240 18412 11956 22849 18775 12246 24236 20402 13281 25368 21006 13758 24069 20130 13139 24719 20471 13319 24247 19885 12820 22654 18746 12004 24770 19974 12851 25882 20744 13266 27455 22060 14193 08/05 27354 21654 13996 The chart above shows the growth in value of a hypothetical $10,000 investment in Class Z shares of Columbia Small Cap Growth Fund I during the stated time period, and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The Russell 2000 Index is an unmanaged index that tracks the performance of the 2,000 smallest of the 3,000 largest U.S. companies based on market capitalization. The Russell 2000 Growth Index is an unmanaged index that measures the performance of those Russell 2000 Index companies with higher price-to-book ratios and higher forecasted growth values. 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 October 1, 1996. AVERAGE ANNUAL TOTAL RETURN AS OF 08/31/05 (%) SHARE CLASS Z - ----------------------------------------- INCEPTION 10/01/96 - ----------------------------------------- 1- year 30.39 - ----------------------------------------- 5-year -1.36 - ----------------------------------------- Life 11.95 AVERAGE ANNUAL TOTAL RETURN AS OF 06/30/05 (%) SHARE CLASS Z - ----------------------------------------- 1- year 7.70 - ----------------------------------------- 5-year -1.83 - ----------------------------------------- Life 11.49 ALL RESULTS SHOWN ASSUME REINVESTMENT OF DISTRIBUTIONS. CLASS Z SHARES ARE SOLD AT NET ASSET VALUE WITH NO 12B-1 FEES. CLASS Z SHARES HAVE LIMITED ELIGIBILITY AND THE INVESTMENT MINIMUM REQUIREMENT MAY VARY. PLEASE SEE THE FUND'S PROSPECTUS FOR DETAILS. 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. 10 UNDERSTANDING YOUR EXPENSES ____________________________________________________ COLUMBIA SMALL CAP GROWTH FUND I ESTIMATING YOUR ACTUAL EXPENSES To estimate the expenses that you paid over the period, first you will need your account balance at the end of the period: o FOR SHAREHOLDERS WHO RECEIVE THEIR ACCOUNT STATEMENTS FROM COLUMBIA MANAGEMENT SERVICES, INC., YOUR ACCOUNT BALANCE IS AVAILABLE ONLINE AT WWW.COLUMBIAFUNDS.COM OR BY CALLING SHAREHOLDER SERVICES AT 800.345.6611 o FOR SHAREHOLDERS WHO RECEIVE THEIR ACCOUNT STATEMENTS FROM THEIR BROKERAGE FIRM, CONTACT YOUR BROKERAGE FIRM TO OBTAIN YOUR ACCOUNT BALANCE 1. DIVIDE YOUR ENDING ACCOUNT BALANCE BY $1,000. FOR EXAMPLE, IF AN ACCOUNT BALANCE WAS $8,600 AT THE END OF THE PERIOD, THE RESULT WOULD BE 8.6 2. IN THE SECTION OF THE TABLE BELOW TITLED "EXPENSES PAID DURING THE PERIOD, " LOCATE THE AMOUNT FOR YOUR SHARE CLASS. YOU WILL FIND THIS NUMBER IS IN THE COLUMN LABELED "ACTUAL. " MULTIPLY THIS NUMBER BY THE RESULT FROM STEP 1. YOUR ANSWER IS AN ESTIMATE OF THE EXPENSES YOU PAID ON YOUR ACCOUNT DURING THE PERIOD As a fund shareholder, you incur two types of costs. There are transaction costs, which generally include sales charges on purchases and may include redemption or exchange fees. There are also ongoing costs, which generally include investment advisory fees, Rule 12b-1 fees and other fund expenses. The information on this page is intended to help you understand your ongoing costs of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. ANALYZING YOUR FUND'S EXPENSES BY SHARE CLASS To illustrate these ongoing costs, we have provided an example and calculated the expenses paid by investors in each share class during the reporting period. The information in the following table is based on an initial investment of $1,000, which is invested at the beginning of the reporting period and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the "actual" column is calculated using the fund's actual operating expenses and total return for the period. The amount listed in the "hypothetical" column for each share class assumes that the return each year is 5% before expenses and includes the fund's actual expense ratio. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during this reporting period. 03/01/05 - 08/31/05
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID FUND'S ANNUALIZED BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($) EXPENSE RATIO (%) - ---------------------------------------------------------------------------------------------------------------- ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL - ---------------------------------------------------------------------------------------------------------------- Class Z 1,000.00 1,000.00 1,107.12 1,019.56 5.95 5.70 1.12
Expenses paid during the period are equal to the fund's annualized expense ratio, multiplied by the average account value over the period, then multiplied by the number of days in the fund's most recent fiscal half-year and divided by 365. It is important to note that the expense amounts shown in the table are meant to highlight only ongoing costs of investing in the fund and do not reflect any transactional costs, such as sales charges, redemption or exchange fees. Therefore, the hypothetical examples provided may not help you determine the relative total costs of owning different funds. If these transactional costs were included, your costs would have been higher. COMPARE WITH OTHER FUNDS Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the fund with other funds. To do so, compare the 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the continuing cost of investing in a fund and do not reflect any transactional costs, such as sales charges or redemption or exchange fees. 11 PORTFOLIO MANAGER'S REPORT _____________________________________________________ COLUMBIA SMALL CAP GROWTH FUND I (Sidebar) PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT PERFORMANCE MAY BE LOWER OR HIGHER. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. PLEASE VISIT WWW.COLUMBIAFUNDS.COM FOR DAILY AND MOST RECENT MONTH-END PERFORMANCE UPDATES. SUMMARY o FOR THE 12-MONTH PERIOD ENDED AUGUST 31, 2005, THE FUND'S CLASS Z SHARES RETURNED 30.39%. o THE FUND OUTPERFORMED THE RUSSELL 2000 GROWTH INDEX AND THE BROADER RUSSELL 2000 INDEX, AS WELL AS ITS PEER GROUP. o STRONG STOCK SELECTION, PARTICULARLY IN THE INFORMATION TECHNOLOGY, INDUSTRIAL AND HEALTH CARE SECTORS, CONTRIBUTED TO THE FUND'S OUTPERFORMANCE. [UP ARROW] [UP ARROW] [UP ARROW] CLASS Z RUSSELL 2000 RUSSELL 2000 SHARES GROWTH INDEX INDEX 30.39% 23.51% 23.10% THE RUSSELL 2000 GROWTH INDEX IS AN UNMANAGED INDEX THAT MEASURES THE PERFORMANCE OF THOSE RUSSELL 2000 INDEX COMPANIES WITH HIGHER PRICE-TO-BOOK RATIOS AND HIGHER FORECASTED GROWTH VALUES. THE RUSSELL 2000 INDEX IS AN UNMANAGED INDEX THAT TRACKS THE PERFORMANCE OF THE 2,000 SMALLEST OF THE 3,000 LARGEST U.S. COMPANIES BASED ON MARKET CAPITALIZATION. OBJECTIVE Seeks capital appreciation by investing in stocks of companies with a market capitalization, at the time of initial purchase, equal to or less than the largest stock in the S&P SmallCap 600 Index. TOTAL NET ASSETS $214.7 million For the 12-month period ended August 31, 2005, Columbia Small Cap Growth Fund I class Z shares returned 30.39%. The fund surpassed the 23.51% return of the Russell 2000 Growth Index and the 23.10% return of the Russell 2000 Index during the same period. The fund also outperformed its peer group, the Lipper Small-Cap Growth Funds Category, which returned 24.16%. 1 Strong stock selection, particularly in the information technology, industrial and health care sectors, drove the fund's outperformance. RESTRUCTURING TECHNOLOGY PORTFOLIO HELPED RESULTS Last summer, we restructured the information technology portion of the portfolio to eliminate commodity-type businesses in favor of those with greater intellectual property content, as reflected in companies with higher gross margins. This decision was a key factor in the sector's strong performance for this reporting period. Communications-related stocks Ixia and F5 Networks were among the technology standouts. SiRF Technology Holdings, a supplier of chipsets for global positioning systems for consumer and business applications, performed well. Lastly, Macromedia appreciated on news of its proposed acquisition and was sold from the portfolio. INDUSTRIAL HOLDINGS EXHIBITED STRENGTH The fund's holdings in the industrials sector outperformed, gaining 44% in the reporting period. United Defense Industries stock price rocketed on news of its acquisition by BAE Systems, and the stock was sold from the portfolio. Joy Global reported significantly higher-than-expected earnings, driven by a long-term replacement cycle for mining equipment. URS experienced strength in the commercial and government sectors, to which it provides engineering design services. Finally, Wabtec benefited from an upturn in demand for rail cars. INDUSTRY CONSOLIDATION BENEFITED HEALTH CARE STOCKS Despite some difficulties in early 2005, the health care sector was a top contributor in the period and the fund's holdings outperformed. DaVita and Renal Care Group, both dialysis service providers, and Accredo Health, a specialty pharmaceutical services provider, all benefited from consolidation in the industry. We locked in gains from Renal Care Group and Accredo Health and sold both from the portfolio. However, the fund experienced some disappointments in its pharmaceutical stocks. For example, Connetics struggled as the FDA denied approval of one of its pipeline drugs. We eventually sold the stock since the company's risk profile increased beyond our comfort level. 1 Lipper Inc., a widely respected data provider in the industry, calculates an average total return (assuming reinvestment of distributions) for mutual funds with investment objectives similar to those of the fund. Lipper makes no adjustment for the effect of sales loads. 12 ________________________________________________________________________________ COLUMBIA SMALL CAP GROWTH FUND I NET ASSET VALUE PER SHARE (Sidebar) AS OF 08/31/05 ($) Class Z 27.80 TOP 5 SECTORS AS OF 08/31/05 (%) Information technology 26.3 - ----------------------------------------- Health care 22.3 - ----------------------------------------- Industrials 16.8 - ----------------------------------------- Consumer discretionary 12.2 - ----------------------------------------- Energy 8.0 TOP 10 HOLDINGS AS OF 08/31/05 (%) Salix Pharmaceuticals 2.1 - ----------------------------------------- Wabtec 1.9 - ----------------------------------------- Affiliated Managers Group 1.8 - ----------------------------------------- Corporate Executive Board 1.8 - ----------------------------------------- SiRF Technology Holdings 1.7 - ----------------------------------------- HealthExtras 1.6 - ----------------------------------------- Scientific Games 1.5 - ----------------------------------------- CACI International 1.5 - ----------------------------------------- URS 1.5 - ----------------------------------------- Microsemi 1.4 HOLDINGS DISCUSSED IN THIS REPORT AS OF 08/31/05 (%) Ixia 1.3 - ----------------------------------------- F5 Networks 1.1 - ----------------------------------------- SiRF Technology Holdings 1.7 - ----------------------------------------- Joy Global 1.4 - ----------------------------------------- URS 1.5 - ----------------------------------------- Wabtec 1.9 - ----------------------------------------- DaVita 0.7 - ----------------------------------------- OM Group 1.1 Your fund is actively managed and the composition of its portfolio will change over time. Information provided is calculated as a percentage of net assets. RELATIVE WEAKNESS EMERGED IN CERTAIN SECTORS Although the energy and consumer discretionary sectors made solid contributions to the fund's return, the portfolio's holdings underperformed their counterparts in the index. Stock selection in the energy sector and a lack of exposure to casino gaming operators and housing stocks in the consumer discretionary sector hurt relative performance. Stock selection in the materials sector also detracted from performance, as this group declined in the period. A particular disappointment was OM Group, a cobalt refiner that has benefited from strength in the battery market. Although the stock struggled during the period, we remained patient because we believe that its long-term prospects are favorable. TURNING TO TRADITIONAL GROWTH SEGMENTS In general, we believe that the economy has the potential to continue growing at a healthy rate and the portfolio is positioned accordingly. We remain bullish longer term on energy. Earnings are currently very strong in the materials and industrials sectors, but we are watchful for signs of decelerating growth. In addition, with interest rate increases likely winding down, we believe that traditional growth sectors--such as health care, technology and consumer discretionary--may be poised to provide compelling returns. Finally, we believe that growth stocks appear to be more reasonably valued than value stocks, which have been favored for the past five years. Kenneth A. Korngiebel has managed the fund since June 2004 and has been with the advisor or its predecessors or affiliate organizations since 1996. /s/ Kenneth A. Korngiebel Equity investments are affected by stock market fluctuations that occur in response to economic and business developments. Investments in small-cap stocks may be subject to greater volatility and price fluctuations because they may be thinly traded and less liquid than investments in larger companies. 13 PERFORMANCE INFORMATION ________________________________________________________ COLUMBIA REAL ESTATE EQUITY FUND PERFORMANCE OF A $10,000 INVESTMENT 09/01/95 - 08/31/05 ($) SALES CHARGE WITHOUT WITH - ----------------------------------------- Class A 42,158 39,746 - ----------------------------------------- Class B 41,318 41,318 - ----------------------------------------- Class C 41,303 41,303 - ----------------------------------------- Class D 41,332 40,923 - ----------------------------------------- Class Z 42,571 n/a PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT PERFORMANCE MAY BE LOWER OR HIGHER. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. PLEASE VISIT WWW.COLUMBIAFUNDS.COM FOR DAILY AND MOST RECENT MONTH-END PERFORMANCE UPDATES. GROWTH OF A $10,000 INVESTMENT 09/01/95 - 08/31/05 [MOUNTAIN CHART] CLASS A CLASS A SHARES WITHOUT SHARES WITH SALES CHARGE SALES CHARGE NAREIT INDEX -------------- ------------ ------------ 09/95 10000.00 9425.00 10000.00 10250.00 9661.00 10171.00 10022.00 9446.00 9953.00 10107.00 9526.00 10044.00 11017.00 10384.00 10592.00 11225.00 10580.00 10767.00 11321.00 10670.00 10893.00 11252.00 10605.00 10833.00 11243.00 10596.00 10888.00 11498.00 10837.00 11169.00 11771.00 11094.00 11315.00 11788.00 11110.00 11399.00 12359.00 11648.00 11849.00 12877.00 12136.00 12055.00 13129.00 12374.00 12413.00 13805.00 13011.00 12979.00 15237.00 14361.00 14327.00 15538.00 14645.00 14488.00 15633.00 14734.00 14459.00 15847.00 14936.00 14428.00 15305.00 14425.00 14032.00 15791.00 14883.00 14444.00 16506.00 15557.00 15146.00 17371.00 16372.00 15614.00 17197.00 16208.00 15577.00 18734.00 17657.00 16936.00 18094.00 17053.00 16479.00 18550.00 17483.00 16835.00 19006.00 17913.00 17232.00 18936.00 17847.00 17141.00 18582.00 17513.00 16850.00 19208.00 18103.00 17151.00 18374.00 17318.00 16592.00 18231.00 17183.00 16476.00 18180.00 17134.00 16364.00 17109.00 16125.00 15302.00 15853.00 14942.00 13857.00 16676.00 15717.00 14642.00 16394.00 15452.00 14371.00 16727.00 15765.00 14582.00 16658.00 15701.00 14215.00 16362.00 15421.00 13918.00 16246.00 15312.00 13591.00 16150.00 15221.00 13529.00 17485.00 16480.00 14813.00 18010.00 16974.00 15139.00 17603.00 16591.00 14894.00 16953.00 15979.00 14420.00 16943.00 15969.00 14237.00 16186.00 15255.00 13696.00 15857.00 14946.00 13359.00 15726.00 14821.00 13142.00 16248.00 15314.00 13558.00 16314.00 15376.00 13603.00 15913.00 14998.00 13441.00 16739.00 15777.00 13883.00 17743.00 16723.00 14816.00 17891.00 16862.00 14961.00 18556.00 17489.00 15346.00 20154.00 18995.00 16687.00 19356.00 18243.00 16010.00 20155.00 18996.00 16519.00 19196.00 18092.00 15803.00 19762.00 18626.00 16006.00 20936.00 19732.00 17132.00 20737.00 19545.00 17311.00 20445.00 19269.00 17034.00 20093.00 18938.00 17199.00 20802.00 19606.00 17610.00 21252.00 20030.00 18036.00 22174.00 20899.00 19093.00 21781.00 20529.00 18713.00 22472.00 21180.00 19398.00 21054.00 19843.00 18593.00 20340.00 19171.00 18061.00 21512.00 20275.00 19055.00 22067.00 20798.00 19520.00 22201.00 20925.00 19559.00 22641.00 21339.00 19936.00 23497.00 22146.00 21132.00 23668.00 22307.00 21312.00 24137.00 22749.00 21600.00 24482.00 23074.00 22189.00 23214.00 21879.00 21029.00 22977.00 21656.00 20987.00 22070.00 20801.00 20181.00 21414.00 20183.00 19210.00 22508.00 21214.00 20115.00 22720.00 21414.00 20264.00 22106.00 20835.00 19674.00 22361.00 21075.00 19999.00 22748.00 21440.00 20399.00 23696.00 22334.00 21296.00 24850.00 23421.00 22582.00 25394.00 23934.00 23075.00 26646.00 25114.00 24309.00 27177.00 25614.00 24441.00 27880.00 26277.00 25272.00 28285.00 26658.00 25729.00 29473.00 27778.00 26851.00 30654.00 28892.00 27790.00 31620.00 29802.00 28994.00 32414.00 30550.00 29501.00 33882.00 31934.00 31133.00 29660.00 27955.00 26593.00 31431.00 29624.00 28490.00 32515.00 30646.00 29324.00 32382.00 30520.00 29421.00 34354.00 32379.00 31757.00 34736.00 32738.00 31738.00 36066.00 33992.00 33439.00 37898.00 35719.00 34877.00 40085.00 37780.00 36569.00 37090.00 34958.00 33497.00 37751.00 35580.00 34525.00 37445.00 35292.00 33990.00 38467.00 36255.00 35798.00 39898.00 37604.00 37041.00 41251.00 38879.00 38904.00 43977.00 41449.00 41681.00 08/05 42158.00 39746.00 40154.00 The chart above shows the growth in value of a hypothetical $10,000 investment in Class A shares of Columbia Real Estate Equity Fund during the stated time period, and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The National Association of Real Estate Investment Trusts (NAREIT) Index is an unmanaged index that tracks performance of all publicly traded equity REIT. 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. AVERAGE ANNUAL TOTAL RETURN AS OF 08/31/05 (%)
SHARE CLASS A B C D Z - ------------------------------------------------------------------------------------------- INCEPTION 11/01/02 11/01/02 10/13/03 11/01/02 04/01/94 - ------------------------------------------------------------------------------------------- SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT - ------------------------------------------------------------------------------------------- 1- year 22.65 15.60 21.74 16.74 21.75 20.75 21.75 20.75 22.99 - ------------------------------------------------------------------------------------------- 5-year 16.84 15.47 16.37 16.15 16.36 16.36 16.38 16.15 17.07 - ------------------------------------------------------------------------------------------- 10-year 15.47 14.80 15.24 15.24 15.24 15.24 15.25 15.13 15.59
AVERAGE ANNUAL TOTAL RETURN AS OF 06/30/05 (%)
SHARE CLASS A B C D Z - ------------------------------------------------------------------------------------------- SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT - ------------------------------------------------------------------------------------------- 1- year 26.84 19.55 25.93 20.93 25.90 24.90 25.93 24.93 27.20 - ------------------------------------------------------------------------------------------- 5-year 17.33 15.95 16.89 16.67 16.87 16.87 16.90 16.67 17.55 - ------------------------------------------------------------------------------------------- 10-year 15.48 14.80 15.26 15.26 15.26 15.26 15.27 15.15 15.59
THE "WITH SALES CHARGE" RETURNS INCLUDE THE MAXIMUM INITIAL SALES CHARGE OF 5.75% FOR CLASS A SHARES, MAXIMUM CONTINGENT DEFERRED SALES CHARGE OF 5.00% FOR CLASS B SHARES AND 1.00% FOR CLASS C AND D SHARES FOR THE FIRST YEAR ONLY. THE "WITHOUT SALES CHARGE" RETURNS DO NOT INCLUDE THE EFFECT OF SALES CHARGES. IF THEY HAD, RETURNS WOULD BE LOWER. 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. All results shown assume reinvestment of distributions. Class Z shares are sold at net asset value with no Rule 12b-1 fees. Class Z shares have limited eligibility and the investment minimum requirement may vary. Please see the fund's prospectus for details. Performance for different share classes will vary based on differences in sales charges and fees associated with each class. Effective October 13, 2003, class D shares are closed to all new investors and new accounts. Existing class D shareholders will be able to make additional purchases at any time. In addition, class D sales charge of 1.00% is waived after October 13, 2003. 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. The returns for class C include the returns of class B prior to 10/13/03, the date on which class C was initially offered by the fund. The returns shown for class C also include the performance of class Z prior to the inception of class B (11/01/02). 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, C and D would have been lower. 14 UNDERSTANDING YOUR EXPENSES ____________________________________________________ COLUMBIA REAL ESTATE EQUITY FUND (Sidebar) ESTIMATING YOUR ACTUAL EXPENSES To estimate the expenses that you paid over the period, first you will need your account balance at the end of the period: o FOR SHAREHOLDERS WHO RECEIVE THEIR ACCOUNT STATEMENTS FROM COLUMBIA MANAGEMENT SERVICES, INC., YOUR ACCOUNT BALANCE IS AVAILABLE ONLINE AT WWW.COLUMBIAFUNDS.COM OR BY CALLING SHAREHOLDER SERVICES AT 800.345.6611 o FOR SHAREHOLDERS WHO RECEIVE THEIR ACCOUNT STATEMENTS FROM THEIR BROKERAGE FIRM, CONTACT YOUR BROKERAGE FIRM TO OBTAIN YOUR ACCOUNT BALANCE 1. DIVIDE YOUR ENDING ACCOUNT BALANCE BY $1,000. FOR EXAMPLE, IF AN ACCOUNT BALANCE WAS $8,600 AT THE END OF THE PERIOD, THE RESULT WOULD BE 8.6 2. IN THE SECTION OF THE TABLE BELOW TITLED "EXPENSES PAID DURING THE PERIOD," LOCATE THE AMOUNT FOR YOUR SHARE CLASS. YOU WILL FIND THIS NUMBER IS IN THE COLUMN LABELED "ACTUAL." MULTIPLY THIS NUMBER BY THE RESULT FROM STEP 1. YOUR ANSWER IS AN ESTIMATE OF THE EXPENSES YOU PAID ON YOUR ACCOUNT DURING THE PERIOD As a fund shareholder, you incur two types of costs. There are transaction costs, which generally include sales charges on purchases and may include redemption or exchange fees. There are also ongoing costs, which generally include investment advisory fees, Rule 12b-1 fees and other fund expenses. The information on this page is intended to help you understand your ongoing costs of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. ANALYZING YOUR FUND'S EXPENSES BY SHARE CLASS To illustrate these ongoing costs, we have provided an example and calculated the expenses paid by investors in each share class during the reporting period. The information in the following table is based on an initial investment of $1,000, which is invested at the beginning of the reporting period and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the "actual" column is calculated using the fund's actual operating expenses and total return for the period. The amount listed in the "hypothetical" column for each share class assumes that the return each year is 5% before expenses and includes the fund's actual expense ratio. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during this reporting period. 03/01/05 - 08/31/05
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID FUND'S ANNUALIZED BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($) EXPENSE RATIO (%) - ---------------------------------------------------------------------------------------------------------------- ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL - ---------------------------------------------------------------------------------------------------------------- Class A 1,000.00 1,000.00 1,116.30 1,019.31 6.24 5.96 1.17 - ---------------------------------------------------------------------------------------------------------------- Class B 1,000.00 1,000.00 1,111.71 1,015.53 10.22 9.75 1.92 - ---------------------------------------------------------------------------------------------------------------- Class C 1,000.00 1,000.00 1,111.81 1,015.53 10.22 9.75 1.92 - ---------------------------------------------------------------------------------------------------------------- Class D 1,000.00 1,000.00 1,111.71 1,015.53 10.22 9.75 1.92 - ---------------------------------------------------------------------------------------------------------------- Class Z 1,000.00 1,000.00 1,117.61 1,020.57 4.91 4.69 0.92
Expenses paid during the period are equal to the fund's annualized expense ratio, multiplied by the average account value over the period, then multiplied by the number of days in the fund's most recent fiscal half-year and divided by 365. It is important to note that the expense amounts shown in the table are meant to highlight only ongoing costs of investing in the fund and do not reflect any transactional costs, such as sales charges, redemption or exchange fees. Therefore, the hypothetical examples provided may not help you determine the relative total costs of owning different funds. If these transactional costs were included, your costs would have been higher. COMPARE WITH OTHER FUNDS Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the fund with other funds. To do so, compare the 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the continuing cost of investing in a fund and do not reflect any transactional costs, such as sales charges or redemption or exchange fees. 15 PORTFOLIO MANAGER'S REPORT _____________________________________________________ COLUMBIA REAL ESTATE EQUITY FUND (Sidebar) PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT PERFORMANCE MAY BE LOWER OR HIGHER. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. PLEASE VISIT WWW.COLUMBIAFUNDS.COM FOR DAILY AND MOST RECENT MONTH-END PERFORMANCE UPDATES. SUMMARY o FOR THE 12-MONTH PERIOD ENDED AUGUST 31, 2005, THE FUND'S CLASS A SHARES RETURNED 22.65% WITHOUT SALES CHARGE. o THE FUND, ITS BENCHMARK AND PEER GROUP ALL ENJOYED STRONG, DOUBLE-DIGIT GAINS AS THE REIT MARKET CONTINUED TO OUTPERFORM TRADITIONAL EQUITY AND FIXED INCOME MARKETS DURING THE PERIOD. o THE FUND'S SUBSTANTIAL STAKE IN REAL ESTATE'S LODGING SECTOR CAUSED IT TO RETURN LESS THAN ITS BENCHMARK AS LODGING STOCKS FELL BEHIND THE REMAINDER OF THE REAL ESTATE MARKET. WE BELIEVE THE FUND'S LARGE LODGING ALLOCATION, ALONG WITH A DEFENSIVE POSITION IN PAPER AND FOREST PRODUCTS COMPANIES, ALSO HURT PERFORMANCE RELATIVE TO ITS PEER GROUP. [UP ARROW] [UP ARROW] CLASS A SHARES NAREIT INDEX 22.65% 26.45% THE NATIONAL ASSOCIATION OF REAL ESTATE INVESTMENT TRUSTS (NAREIT) INDEX IS AN UNMANAGED INDEX THAT TRACKS PERFORMANCE OF ALL PUBLICLY TRADED EQUITY REIT. OBJECTIVE Seeks capital appreciation and above-average income by investing in stocks of companies principally engaged in the real estate industry, including real estate investment trusts (REITs). TOTAL NET ASSETS $827.4 million For the 12-month period ended August 31, 2005, Columbia Real Estate Equity Fund class A shares returned 22.65% without sales charge. That was less than the return of the fund's benchmark, the NAREIT Index, which returned 26.45%. The fund also trailed the average return of the Lipper Real Estate Funds Category, which was 25.92%. 1 The fund's performance relative to its benchmark was due to a significant position in the lodging sector, which underperformed the overall REIT market. We believe that the lodging position as well as the fund's holdings in the forest and paper products sector were also the primary reasons the fund fell short of the average return of its peer group. The forest and paper products position was sold during the period. A STRONG ECONOMY BOLSTERED REITS A strong US economy increased the demand for space and buoyed the prices of real estate investment trusts (REITs). Early in 2005, demand for REITs dropped sharply as investors took profits and waited for signs of continued economic strength. However, the REIT market bounced back with vigor in March as the price of the 10-year Treasury bond rallied and its yield fell. The 10-year Treasury has recently been a bellwether for REIT market performance. The rally helped the fund's overall return, but it failed to carry with it the fund's largest sector position--lodging stocks--which materially underperformed the remainder of the market over the period. LODGING AND PAPER & FOREST PRODUCTS HOLDINGS HURT PERFORMANCE Riding high on positive travel trends, the fund's holdings in the lodging sector contributed strongly to performance until March when investors became concerned about the ability of consumers to continue spending as fuel costs continued to climb. This perception sparked a sell-off in consumer discretionary stocks, in general, including securities related to the travel industry. Yet, we continue to believe in the economy's health and the underlying business strength of the lodging stocks held in the portfolio. Based on this, the fund's allocation to the sector is approximately triple that of the index. A defensive position in non-real estate paper and forest product stocks eliminated over the course of the year also had a negative effect on overall performance. 1 Lipper Inc., a widely respected data provider in the industry, calculates an average total return (assuming reinvestment of distributions) for mutual funds with investment objectives similar to those of the fund. Lipper makes no adjustment for the effect of sales loads. 16 ________________________________________________________________________________ COLUMBIA REAL ESTATE EQUITY FUND (Sidebar) NET ASSET VALUE PER SHARE AS OF 08/31/05 ($) Class A 27.84 - ----------------------------------------- Class B 27.85 - ----------------------------------------- Class C 27.83 - ----------------------------------------- Class D 27.84 - ----------------------------------------- Class Z 27.86 DISTRIBUTIONS DECLARED PER SHARE 09/01/04 - 08/31/05 ($) Class A 3.27 - ----------------------------------------- Class B 3.08 - ----------------------------------------- Class C 3.08 - ----------------------------------------- Class D 3.08 - ----------------------------------------- Class Z 3.34 TOP SECTORS AS OF 08/31/05 (%) Financial 80.7 - ----------------------------------------- Consumer discretionary 15.3 - ----------------------------------------- Consumer staples 0.7 - ----------------------------------------- Telecommunication services 0.6 TOP 10 HOLDINGS AS OF 08/31/05 (%) Hilton Hotels 6.5 - ----------------------------------------- Simon Property Group 5.7 - ----------------------------------------- iStar Financial 5.6 - ----------------------------------------- Alexandria Real Estate Equities 5.4 - ----------------------------------------- Starwood Hotels & Resorts Worldwide 4.4 - ----------------------------------------- Kimco Realty 4.3 - ----------------------------------------- Public Storage 4.3 - ----------------------------------------- Host Marriott 4.2 - ----------------------------------------- Cousins Properties 4.1 - ----------------------------------------- Marriott International 3.7 HOLDINGS DISCUSSED IN THIS REPORT AS OF 08/31/05 (%) Brookfield Properties 1.0 - ----------------------------------------- SL Green Realty 1.8 - ----------------------------------------- Boston Properties 1.7 - ----------------------------------------- General Growth Properties 3.7 - ----------------------------------------- Simon Property Group 5.7 - ----------------------------------------- Hilton Hotels 6.5 - ----------------------------------------- Starwood Hotels & Resorts Worldwide 4.4 Your fund is actively managed and the composition of its portfolio will change over time. Information provided is calculated as a percentage of new assets. OFFICE AND RETAIL SECTORS BOOSTED RETURN During the period, we added to the portfolio's holdings in the office sector, which was overweight relative to the sector's allocation in the index. This decision was rewarded by strong performance from the group, driven by improving US employment statistics. Several of the fund's holdings in the Manhattan office market were among its best performers, including Brookfield Properties, a Canadian real estate operating company, SL Green Realty and Boston Properties. We believed that this recovering sector remained attractively valued relative to the overall REIT market, and many demonstrated strong operating momentum. Several of the fund's holdings in the retail sector--including General Growth Properties and Simon Property Group, which own and operate mall properties--benefited from a combination of continued strength in consumer spending and healthy underlying business prospects. SEEKING VALUE IN AN OVERPRICED MARKET In a market characterized by heady prices and runaway real estate valuations, we expect REITs to face a headwind from higher interest rates if the economy continues to improve and the Federal Reserve Board continues to raise short-term rates. Against this backdrop, we plan to continue to seek sectors and securities that we believe are attractively valued and offer opportunities for growth. We also plan to continue to emphasize non-REIT, real-estate related holdings with these characteristics, such as lodging companies Hilton Hotels, Marriott International and Starwood Hotels & Resorts Worldwide. David Jellison has managed the fund since 1994 and has been with the advisor and its predecessors or affiliate organizations since 1992. /s/ David Jellison Equity investments are affected by 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. 17 PERFORMANCE INFORMATION ________________________________________________________ COLUMBIA TECHNOLOGY FUND PERFORMANCE OF A $10,000 INVESTMENT 11/09/00 - 08/31/05 ($) SALES CHARGE WITHOUT WITH - ----------------------------------------- Class A 8,762 8,259 - ----------------------------------------- Class B 8,562 8,391 - ----------------------------------------- Class C 8,582 8,582 - ----------------------------------------- Class D 8,612 8,527 - ----------------------------------------- Class Z 8,852 n/a PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT PERFORMANCE MAY BE LOWER OR HIGHER. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. PLEASE VISIT WWW.COLUMBIAFUNDS.COM FOR DAILY AND MOST RECENT MONTH-END PERFORMANCE UPDATES. GROWTH OF A $10,000 INVESTMENT 11/09/00 - 08/31/05 [MOUNTAIN CHART] CLASS A SHARES CLASS A SHARES WITHOUT SALES WITH SALES MERRILL LYNCH 100 CHARGE CHARGE TECHNOLOGY INDEX -------------- -------------- ----------------- 11/00 10000.00 9425.00 10000.00 8713.00 8212.00 7744.00 8622.00 8127.00 7317.00 9142.00 8617.00 8577.00 6815.00 6423.00 6096.00 6145.00 5792.00 5123.00 7365.00 6941.00 6259.00 7135.00 6725.00 5891.00 7285.00 6866.00 5912.00 6745.00 6357.00 5377.00 6095.00 5745.00 4719.00 4547.00 4285.00 3495.00 5166.00 4869.00 4158.00 5896.00 5557.00 4944.00 6126.00 5773.00 4935.00 6086.00 5736.00 4962.00 5367.00 5058.00 4289.00 6106.00 5755.00 4788.00 5376.00 5067.00 4204.00 5047.00 4757.00 3969.00 4607.00 4342.00 3321.00 3888.00 3664.00 2877.00 3858.00 3636.00 2776.00 3468.00 3269.00 2277.00 3818.00 3598.00 2774.00 4258.00 4013.00 3386.00 3788.00 3570.00 2885.00 3828.00 3608.00 2876.00 3808.00 3589.00 2901.00 3679.00 3467.00 2880.00 4138.00 3900.00 3218.00 4888.00 4607.00 3764.00 4988.00 4701.00 3746.00 5398.00 5088.00 3916.00 5907.00 5568.00 4353.00 5977.00 5634.00 4204.00 6727.00 6340.00 4711.00 7066.00 6660.00 4862.00 6977.00 6576.00 4871.00 7496.00 7065.00 5182.00 7356.00 6933.00 5085.00 7286.00 6867.00 4941.00 6916.00 6519.00 4545.00 7226.00 6811.00 4811.00 7566.00 7131.00 4955.00 6687.00 6302.00 4389.00 6497.00 6123.00 4192.00 7016.00 6613.00 4403.00 7396.00 6971.00 4723.00 8156.00 7687.00 5057.00 8456.00 7970.00 5219.00 7656.00 7216.00 4848.00 7826.00 7376.00 4932.00 7526.00 7093.00 4792.00 7056.00 6651.00 4513.00 7906.00 7451.00 4946.00 7986.00 7527.00 4829.00 8745.00 8242.00 5157.00 08/05 8762.00 8259.00 5169.00 The chart above shows the growth in value of a hypothetical $10,000 investment in Class A shares of Columbia Technology Fund during the stated time period, and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. 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 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 November 9, 2000. AVERAGE ANNUAL TOTAL RETURN AS OF 08/31/05 (%)
SHARE CLASS A B C D Z - ----------------------------------------------------------------------------------------------------------------- INCEPTION 11/01/02 11/01/02 10/13/03 11/01/02 11/09/00 - ----------------------------------------------------------------------------------------------------------------- SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT - ----------------------------------------------------------------------------------------------------------------- 1- year 34.92 27.16 33.91 28.91 34.01 33.01 34.06 33.06 35.27 - ----------------------------------------------------------------------------------------------------------------- Life -2.71 -3.90 -3.18 -3.58 -3.13 -3.13 -3.06 -3.26 -2.51
AVERAGE ANNUAL TOTAL RETURN AS OF 06/30/05 (%)
SHARE CLASS A B C D Z - ----------------------------------------------------------------------------------------------------------------- SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT - ----------------------------------------------------------------------------------------------------------------- 1- year 5.55 -0.52 4.69 -0.31 4.82 3.82 4.80 3.80 5.77 - ----------------------------------------------------------------------------------------------------------------- Life -4.74 -5.95 -5.21 -5.62 -5.16 -5.16 -5.08 -5.28 -4.56
THE "WITH SALES CHARGE" RETURNS INCLUDE THE MAXIMUM INITIAL SALES CHARGE OF 5.75% FOR CLASS A SHARES, MAXIMUM CONTINGENT DEFERRED SALES CHARGE OF 5.00% FOR CLASS B SHARES AND 1.00% FOR CLASS C AND D SHARES FOR THE FIRST YEAR ONLY. THE "WITHOUT SALES CHARGE" RETURNS DO NOT INCLUDE THE EFFECT OF SALES CHARGES. IF THEY HAD, RETURNS WOULD BE LOWER. 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. All results shown assume reinvestment of distributions. Class Z shares are sold at net asset value with no Rule 12b-1 fees. Class Z shares have limited eligibility and the investment minimum requirement may vary. Please see the fund's prospectus for details. Performance for different share classes will vary based on differences in sales charges and fees associated with each class. Effective October 13, 2003, class D shares are closed to all new investors and new accounts. Existing class D shareholders will be able to make additional purchases at any time. In addition, class D initial sales charge of 1.00% is waived after October 13, 2003. 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. The returns for class C include the returns of class B prior to 10/13/03, the date on which class C was initially offered by the fund. The returns shown for class C also include the performance of class Z prior to the inception of class B (11/01/02). 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, C and D would have been lower. 18 UNDERSTANDING YOUR EXPENSES ____________________________________________________ COLUMBIA TECHNOLOGY FUND ESTIMATING YOUR ACTUAL EXPENSES To estimate the expenses that you paid over the period, first you will need your account balance at the end of the period: o FOR SHAREHOLDERS WHO RECEIVE THEIR ACCOUNT STATEMENTS FROM COLUMBIA MANAGEMENT SERVICES, INC., YOUR ACCOUNT BALANCE IS AVAILABLE ONLINE AT WWW.COLUMBIAFUNDS.COM OR BY CALLING SHAREHOLDER SERVICES AT 800.345.6611 o FOR SHAREHOLDERS WHO RECEIVE THEIR ACCOUNT STATEMENTS FROM THEIR BROKERAGE FIRM, CONTACT YOUR BROKERAGE FIRM TO OBTAIN YOUR ACCOUNT BALANCE 1. DIVIDE YOUR ENDING ACCOUNT BALANCE BY $1,000. FOR EXAMPLE, IF AN ACCOUNT BALANCE WAS $8,600 AT THE END OF THE PERIOD, THE RESULT WOULD BE 8.6 2. IN THE SECTION OF THE TABLE BELOW TITLED "EXPENSES PAID DURING THE PERIOD," LOCATE THE AMOUNT FOR YOUR SHARE CLASS. YOU WILL FIND THIS NUMBER IS IN THE COLUMN LABELED "ACTUAL." MULTIPLY THIS NUMBER BY THE RESULT FROM STEP 1. YOUR ANSWER IS AN ESTIMATE OF THE EXPENSES YOU PAID ON YOUR ACCOUNT DURING THE PERIOD As a fund shareholder, you incur two types of costs. There are transaction costs, which generally include sales charges on purchases and may include redemption or exchange fees. There are also ongoing costs, which generally include investment advisory fees, Rule 12b-1 fees and other fund expenses. The information on this page is intended to help you understand your ongoing costs of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. ANALYZING YOUR FUND'S EXPENSES BY SHARE CLASS To illustrate these ongoing costs, we have provided an example and calculated the expenses paid by investors in each share class during the reporting period. The information in the following table is based on an initial investment of $1,000, which is invested at the beginning of the reporting period and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the "actual" column is calculated using the fund's actual operating expenses and total return for the period. The amount listed in the "hypothetical" column for each share class assumes that the return each year is 5% before expenses and includes the fund's actual expense ratio. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during this reporting period. 03/01/05 - 08/31/05
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID FUND'S ANNUALIZED BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($) EXPENSE RATIO (%) - ----------------------------------------------------------------------------------------------------------------------- ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL - ----------------------------------------------------------------------------------------------------------------------- Class A 1,000.00 1,000.00 1,120.08 1,016.38 9.35 8.89 1.75 - ----------------------------------------------------------------------------------------------------------------------- Class B 1,000.00 1,000.00 1,117.31 1,012.60 13.34 12.68 2.50 - ----------------------------------------------------------------------------------------------------------------------- Class C 1,000.00 1,000.00 1,117.00 1,012.60 13.34 12.68 2.50 - ----------------------------------------------------------------------------------------------------------------------- Class D 1,000.00 1,000.00 1,116.60 1,012.60 13.34 12.68 2.50 - ----------------------------------------------------------------------------------------------------------------------- Class Z 1,000.00 1,000.00 1,122.90 1,017.64 8.03 7.63 1.50
Expenses paid during the period are equal to the fund's annualized expense ratio, multiplied by the average account value over the period, then multiplied by the number of days in the fund's most recent fiscal half-year and divided by 365. It is important to note that the expense amounts shown in the table are meant to highlight only ongoing costs of investing in the fund and do not reflect any transactional costs, such as sales charges, redemption or exchange fees. Therefore, the hypothetical examples provided may not help you determine the relative total costs of owning different funds. If these transactional costs were included, your costs would have been higher. COMPARE WITH OTHER FUNDS Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the fund with other funds. To do so, compare the 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the continuing cost of investing in a fund and do not reflect any transactional costs, such as sales charges or redemption or exchange fees. 19 PORTFOLIO MANAGERS' REPORT _____________________________________________________ COLUMBIA TECHNOLOGY FUND (Sidebar) PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT PERFORMANCE MAY BE LOWER OR HIGHER. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. PLEASE VISIT WWW.COLUMBIAFUNDS.COM FOR DAILY AND MOST RECENT MONTH-END PERFORMANCE UPDATES. SUMMARY o FOR THE 12-MONTH PERIOD ENDED AUGUST 31, 2005, THE FUND'S CLASS A SHARES RETURNED 34.92% WITHOUT SALES CHARGE. o THE FUND PERFORMED BETTER THAN THE MERRILL LYNCH 100 TECHNOLOGY INDEX AND THE LIPPER SCIENCE & TECHNOLOGY CATEGORY AVERAGE. o STRONG STOCK SELECTION, PARTICULARLY WITHIN THE SEMICONDUCTOR, WIRELESS TELECOMMUNICATIONS AND COMMUNICATIONS EQUIPMENT INDUSTRIES, DROVE THE FUND'S OUTPERFORMANCE. [UP ARROW] [UP ARROW] MERRILL LYNCH 100 CLASS A SHARES TECHNOLOGY INDEX 34.92% 23.32% THE MERRILL LYNCH 100 TECHNOLOGY INDEX IS AN EQUALLY WEIGHTED, UNMANAGED INDEX OF 100 LEADING TECHNOLOGY STOCKS. OBJECTIVE Seeks capital appreciation by investing in stocks of technology companies that may benefit from technological improvements, advancements or developments. TOTAL NET ASSETS $60.8 million For the 12-month period ended August 31, 2005, Columbia Technology Fund class A shares returned 34.92% without sales charge. The fund outperformed the Merrill Lynch 100 Technology Index, which returned 23.32% for the same period. It also beat the average return of the Lipper Science & Technology Category, which was 20.67%. 1 Strong stock selection, particularly within the communications equipment, semiconductor and wireless telecommunications industries, drove the fund's outperformance. COMMUNICATIONS-RELATED STOCKS ADVANCED Stock selection in the communications equipment industry made a strong contribution to the fund's performance. SiRF Technology Holdings benefited from demand for its chipsets for global positioning systems (GPS) and returned 99% for the fund. We believe that GPS is in the early stages of adoption and have maintained the fund's exposure to the industry. We took a significant position in Nokia when the market appeared overly pessimistic about growth in the cell phone market. The fund benefited as the market readjusted its expectations, and we sold the stock at a gain. Also, Harris, which provides fixed wireless and radio systems, benefited from increased defense technology spending. Throughout the reporting period, we focused on the trend toward greater adoption of wireless technology as an investment theme. This led us to overweight the wireless telecommunications industry, which performed well for the fund. Tower companies SBA Communications and Crown Castle International benefited from increased wireless cell phone usage. Dobson Communications advanced due to successful renegotiation of roaming contracts. Long-term holding Millicom International Cellular provides cellular service in developing countries and benefited from considerable market share in Africa, Asia and South America. SEMICONDUCTOR STOCKS MADE STRONG CONTRIBUTIONS Superior stock selection in the semiconductor industry enhanced the fund's return. We continued to look beyond mega-sized firms to identify growth potential among companies with specific product strengths. NVIDIA was a top performer as it reclaimed market share of the high-end graphics business and expanded into new markets with graphics for cellular phones. Advanced Micro Devices gained ground with the introduction of new products. Marvell Technology Group and Broadcom, suppliers of semiconductors to the communications industry, were also solid contributors. On the downside, Sigmatel, which makes flash memory chips for portable music devices, detracted from performance due to competitive issues and was sold. STRONG PERFORMANCE FROM MEDIA, COMPUTERS We expanded on our investment theme that focused on the digitization of media and its delivery to consumers and businesses, which benefited from persistent growth in the digital satellite radio market. XM Satellite Radio Holdings advanced on the strength of its new mobile products and continued interest from the automobile industry. In computers 1 Lipper Inc., a widely respected data provider in the industry, calculates an average total return (assuming reinvestment of distributions) for mutual funds with investment objectives similar to those of the fund. Lipper makes no adjustment for the effect of sales loads. 20 ________________________________________________________________________________ COLUMBIA TECHNOLOGY FUND (Sidebar) NET ASSET VALUE PER SHARE AS OF 08/31/05 ($) Class A 8.77 - ----------------------------------------- Class B 8.57 - ----------------------------------------- Class C 8.59 - ----------------------------------------- Class D 8.62 - ----------------------------------------- Class Z 8.86 TOP 5 SECTORS AS OF 08/31/05 (%) Information technology 71.1 - ----------------------------------------- Telecommunication services 17.7 - ----------------------------------------- Consumer discretionary 5.8 - ----------------------------------------- Health care 3.4 - ----------------------------------------- Industrials 0.9 TOP 10 HOLDINGS AS OF 08/31/05 (%) Marvell Technology Group 4.1 - ----------------------------------------- Google 3.4 - ----------------------------------------- Broadcom 3.4 - ----------------------------------------- SiRF Technology Holdings 3.0 - ----------------------------------------- Dobson Communications 2.5 - ----------------------------------------- Yahoo! 2.5 - ----------------------------------------- American Tower 2.2 - ----------------------------------------- Crown Castle International 2.2 - ----------------------------------------- SanDisk 2.2 - ----------------------------------------- XM Satellite Radio Holdings 2.1 HOLDINGS DISCUSSED IN THIS REPORT AS OF 08/31/05 (%) SiRF Technology Holdings 3.0 - ----------------------------------------- Harris 0.7 - ----------------------------------------- SBA Communications 1.5 - ----------------------------------------- Crown Castle International 2.2 - ----------------------------------------- Dobson Communications 2.5 - ----------------------------------------- Millicom International Cellular 1.8 - ----------------------------------------- NVIDIA 1.0 - ----------------------------------------- Advanced Micro Devices 0.3 - ----------------------------------------- Marvell Technology Group 4.1 - ----------------------------------------- Broadcom 3.4 - ----------------------------------------- XM Satellite Radio Holdings 2.0 - ----------------------------------------- Apple Computer 1.4 - ----------------------------------------- eBay 1.3 Your fund is actively managed and the composition of its portfolio will change over time. Information provided is calculated as a percentage of net assets. and peripherals, an overweight position in Apple Computer helped performance, as new products at attractive prices drove sales above expectations. MIXED RESULTS FROM INTERNET, ELECTRONIC EQUIPMENT STOCKS The fund's Internet holdings provided mixed results for the reporting period; although they made solid contributions to the fund's return, they underperformed relative to the index. For instance, eBay came under pressure due to recurring issues about growth potential. We reduced the fund's position and continued to monitor the stock. PC Mall, a catalog and retail industry holding, was sold from the portfolio as it fell short of earnings projections. In the electronic equipment and instrument industry, I.D. Systems and Viisage Technology got caught up in the turmoil surrounding technology identity systems and homeland security, and we sold both positions. IDENTIFYING COMPELLING GROWTH OPPORTUNITIES We plan to continue to position the portfolio in line with investment themes that indicate compelling growth opportunities. For example, we are focusing on companies that may benefit from the adoption of technology in developing countries, cost savings through outsourcing, and key products, especially in semiconductors. In addition, we continue to evaluate investments in wireless telecommunications based on growing trends in wireless voice and data communication. Wayne Collette has co-managed the Columbia Technology Fund since June 2002 and has been with the advisor or its predecessors or affiliate organizations since 2001. /s/ Wayne Collette Theodore Wendell has been with the advisor or its predecessors or affiliate organizations since 2000. Except for the period between June and August 2004, he has co-managed the fund since June 2002. /s/ Theodore Wendell Equity investments are affected by 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 concentrates in technology stocks. International investing may involve certain risks, including foreign taxation, currency fluctuations, risks associated with possible differences in financial standards and other monetary and political risks. Some of the countries the fund invests in are considered emerging economies, which means there may be greater risks associated with investing there than in more developed countries. In addition, concentration of investments in a single region may result in greater volatility. 21 PERFORMANCE INFORMATION ________________________________________________________ COLUMBIA STRATEGIC INVESTOR FUND PERFORMANCE OF A $10,000 INVESTMENT 11/09/00 - 08/31/05 ($) SALES CHARGE WITHOUT WITH - ----------------------------------------- Class A 21,850 20,596 - ----------------------------------------- Class B 21,357 21,157 - ----------------------------------------- Class C 21,367 21,367 - ----------------------------------------- Class D 21,357 21,146 - ----------------------------------------- Class Z 22,008 n/a PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT PERFORMANCE MAY BE LOWER OR HIGHER. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. PLEASE VISIT WWW.COLUMBIAFUNDS.COM FOR DAILY AND MOST RECENT MONTH-END PERFORMANCE UPDATES. GROWTH OF A $10,000 INVESTMENT 11/09/00 - 08/31/05 [MOUNTAIN CHART] CLASS A SHARES CLASS A SHARES WITHOUT SALES WITH SALES RUSSELL 3000 CHARGE CHARGE VALUE INDEX S&P 500 INDEX -------------- -------------- ------------ ------------- 11/00 10000.00 9425.00 10000.00 10000.00 9790.00 9227.00 9730.00 9399.00 11224.00 10579.00 10253.00 9445.00 12274.00 11568.00 10308.00 9780.00 12254.00 11549.00 10040.00 8888.00 11984.00 11295.00 9699.00 8325.00 12934.00 12190.00 10172.00 8972.00 13743.00 12953.00 10403.00 9032.00 13963.00 13160.00 10218.00 8812.00 13884.00 13085.00 10182.00 8726.00 13664.00 12879.00 9799.00 8180.00 12325.00 11616.00 9082.00 7519.00 12736.00 12003.00 9024.00 7662.00 13896.00 13097.00 9558.00 8250.00 14568.00 13731.00 9808.00 8323.00 14599.00 13759.00 9747.00 8201.00 14719.00 13872.00 9766.00 8043.00 15591.00 14695.00 10248.00 8345.00 15521.00 14629.00 9951.00 7840.00 15541.00 14648.00 9970.00 7782.00 14900.00 14043.00 9426.00 7228.00 13636.00 12852.00 8510.00 6665.00 13676.00 12889.00 8567.00 6708.00 12311.00 11603.00 7639.00 5979.00 12894.00 12153.00 8172.00 6505.00 14141.00 13328.00 8696.00 6888.00 13310.00 12544.00 8318.00 6484.00 12945.00 12201.00 8115.00 6314.00 12681.00 11952.00 7895.00 6219.00 12620.00 11894.00 7913.00 6279.00 13827.00 13032.00 8613.00 6797.00 14982.00 14121.00 9192.00 7155.00 15125.00 14255.00 9310.00 7247.00 15601.00 14704.00 9472.00 7374.00 16169.00 15239.00 9634.00 7518.00 16037.00 15114.00 9539.00 7438.00 16928.00 15955.00 10137.00 7859.00 17294.00 16299.00 10294.00 7928.00 18117.00 17075.00 10908.00 8344.00 18503.00 17439.00 11114.00 8497.00 18941.00 17852.00 11351.00 8615.00 19002.00 17909.00 11271.00 8485.00 18666.00 17592.00 10971.00 8352.00 18675.00 17601.00 11084.00 8467.00 19224.00 18119.00 11369.00 8631.00 18582.00 17514.00 11178.00 8345.00 18694.00 17619.00 11334.00 8379.00 19151.00 18050.00 11532.00 8469.00 19274.00 18166.00 11722.00 8599.00 20301.00 19134.00 12353.00 8947.00 20912.00 19710.00 12756.00 9251.00 20448.00 19272.00 12506.00 9025.00 21107.00 19893.00 12906.00 9215.00 20817.00 19620.00 12721.00 9052.00 20241.00 19077.00 12458.00 8880.00 20704.00 19514.00 12796.00 9162.00 20971.00 19766.00 12972.00 9175.00 21661.00 20416.00 13379.00 9516.00 08/05 21850.00 20596.00 13301.00 9431.00 The chart above shows the growth in value of a hypothetical $10,000 investment in Class A shares of Columbia Strategic Investor Fund during the stated time period, and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The Russell 3000 Value Index is an unmanaged index that measures the performance of those Russell 3000 Index companies with lower price-to-book ratios and lower forecasted growth values. The stocks in this index are also members of either the Russell 1000 Value or the Russell 2000 Value indexes. The Standard & Poor's (S&P) 500 Index is an unmanaged index that tracks the performance of 500 widely held, large-capitalization U.S. stocks. 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. Securities in the fund may not match those in an index. Index performance is from November 9, 2000. AVERAGE ANNUAL TOTAL RETURN AS OF 08/31/05 (%)
SHARE CLASS A B C D Z - ----------------------------------------------------------------------------------------------------------------- INCEPTION DATE 11/01/02 11/01/02 10/13/03 11/01/02 11/09/00 - ----------------------------------------------------------------------------------------------------------------- SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT - ----------------------------------------------------------------------------------------------------------------- 1- year 16.88 10.16 15.97 10.97 15.96 14.96 15.97 14.97 17.16 - ----------------------------------------------------------------------------------------------------------------- Life 17.65 16.21 17.09 16.87 17.11 17.11 17.09 16.85 17.83
AVERAGE ANNUAL TOTAL RETURN AS OF 06/30/05 (%) SHARE CLASS A B C D Z - ---------------------------------------------------------------------------------------------------------------- SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT - ---------------------------------------------------------------------------------------------------------------- 1- year 9.11 2.83 8.30 3.30 8.29 7.29 8.30 7.30 9.39 - ---------------------------------------------------------------------------------------------------------------- Life 17.31 15.83 16.78 16.54 16.80 16.80 16.77 16.52 17.49
THE "WITH SALES CHARGE" RETURNS INCLUDE THE MAXIMUM INITIAL SALES CHARGE OF 5.75% FOR CLASS A SHARES, MAXIMUM CONTINGENT DEFERRED SALES CHARGE OF 5.00% FOR CLASS B SHARES AND 1.00% FOR CLASS C AND D SHARES FOR THE FIRST YEAR ONLY. THE "WITHOUT SALES CHARGE" RETURNS DO NOT INCLUDE THE EFFECT OF SALES CHARGES. IF THEY HAD, RETURNS WOULD BE LOWER. 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. All results shown assume reinvestment of distributions. Class Z shares are sold at net asset value with no Rule 12b-1 fees. Class Z shares have limited eligibility and the investment minimum requirement may vary. Please see the fund's prospectus for details. Performance for different share classes will vary based on differences in sales charges and fees associated with each class. Effective October 13, 2003, class D shares are closed to all new investors and new accounts. Existing class D shareholders will be able to make additional purchases at any time. In addition, class D sales charge of 1.00% is waived after October 13, 2003. 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. The returns for class C include the returns of class B prior to 10/13/03, the date on which class C was initially offered by the fund. The returns shown for class C also include the performance of class Z prior to the inception of class B (11/01/02). 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, C, and D would have been lower. 22 UNDERSTANDING YOUR EXPENSES ____________________________________________________ COLUMBIA STRATEGIC INVESTOR FUND ESTIMATING YOUR ACTUAL EXPENSES To estimate the expenses that you paid over the period, first you will need your account balance at the end of the period: o FOR SHAREHOLDERS WHO RECEIVE THEIR ACCOUNT STATEMENTS FROM COLUMBIA MANAGEMENT SERVICES, INC., YOUR ACCOUNT BALANCE IS AVAILABLE ONLINE AT WWW.COLUMBIAFUNDS.COM OR BY CALLING SHAREHOLDER SERVICES AT 800.345.6611 o FOR SHAREHOLDERS WHO RECEIVE THEIR ACCOUNT STATEMENTS FROM THEIR BROKERAGE FIRM, CONTACT YOUR BROKERAGE FIRM TO OBTAIN YOUR ACCOUNT BALANCE 1. DIVIDE YOUR ENDING ACCOUNT BALANCE BY $1,000. FOR EXAMPLE, IF AN ACCOUNT BALANCE WAS $8,600 AT THE END OF THE PERIOD, THE RESULT WOULD BE 8.6 2. IN THE SECTION OF THE TABLE BELOW TITLED "EXPENSES PAID DURING THE PERIOD," LOCATE THE AMOUNT FOR YOUR SHARE CLASS. YOU WILL FIND THIS NUMBER IS IN THE COLUMN LABELED "ACTUAL." MULTIPLY THIS NUMBER BY THE RESULT FROM STEP 1. YOUR ANSWER IS AN ESTIMATE OF THE EXPENSES YOU PAID ON YOUR ACCOUNT DURING THE PERIOD As a fund shareholder, you incur two types of costs. There are transaction costs, which generally include sales charges on purchases and may include redemption or exchange fees. There are also ongoing costs, which generally include investment advisory fees, Rule 12b-1 fees and other fund expenses. The information on this page is intended to help you understand your ongoing costs of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. ANALYZING YOUR FUND'S EXPENSES BY SHARE CLASS To illustrate these ongoing costs, we have provided an example and calculated the expenses paid by investors in each share class during the reporting period. The information in the following table is based on an initial investment of $1,000, which is invested at the beginning of the reporting period and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the "actual" column is calculated using the fund's actual operating expenses and total return for the period. The amount listed in the "hypothetical" column for each share class assumes that the return each year is 5% before expenses and includes the fund's actual expense ratio. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during this reporting period. 03/01/05 - 08/31/05
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID FUND'S ANNUALIZED BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($) EXPENSE RATIO (%) - ------------------------------------------------------------------------------------------------------------------------- ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL - ------------------------------------------------------------------------------------------------------------------------- Class A 1,000.00 1,000.00 1,035.09 1,018.90 6.41 6.36 1.25 - ------------------------------------------------------------------------------------------------------------------------- Class B 1,000.00 1,000.00 1,030.70 1,015.12 10.24 10.16 2.00 - ------------------------------------------------------------------------------------------------------------------------- Class C 1,000.00 1,000.00 1,031.20 1,015.12 10.24 10.16 2.00 - ------------------------------------------------------------------------------------------------------------------------- Class D 1,000.00 1,000.00 1,031.20 1,015.12 10.24 10.16 2.00 - ------------------------------------------------------------------------------------------------------------------------- Class Z 1,000.00 1,000.00 1,035.99 1,020.16 5.13 5.09 1.00
Expenses paid during the period are equal to the fund's annualized expense ratio, multiplied by the average account value over the period, then multiplied by the number of days in the fund's most recent fiscal half-year and divided by 365. Had the Fund's Transfer Agent not waived a portion of expenses, total return would have been reduced. It is important to note that the expense amounts shown in the table are meant to highlight only ongoing costs of investing in the fund and do not reflect any transactional costs, such as sales charges, redemption or exchange fees. Therefore, the hypothetical examples provided may not help you determine the relative total costs of owning different funds. If these transactional costs were included, your costs would have been higher. COMPARE WITH OTHER FUNDS Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the fund with other funds. To do so, compare the 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the continuing cost of investing in a fund and do not reflect any transactional costs, such as sales charges or redemption or exchange fees. 23 PORTFOLIO MANAGER'S REPORT _____________________________________________________ COLUMBIA STRATEGIC INVESTOR FUND (Sidebar) PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT PERFORMANCE MAY BE LOWER OR HIGHER. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. PLEASE VISIT WWW.COLUMBIAFUNDS.COM FOR DAILY AND MOST RECENT MONTH-END PERFORMANCE UPDATES. SUMMARY o FOR THE 12-MONTH PERIOD ENDED AUGUST 31, 2005, THE FUND'S CLASS A SHARES RETURNED 16.88% WITHOUT SALES CHARGE. o A STRONG EQUITY ENVIRONMENT PROPELLED THE FUND, THE RUSSELL 3000 VALUE INDEX AND THE S&P 500 INDEX TO DOUBLE-DIGIT RETURNS. o STOCK SELECTION DROVE THE FUND'S STRONG GAINS. HOWEVER, A DEFENSIVE STANCE AND LARGER-THAN-AVERAGE CASH POSITION DETRACTED FROM PERFORMANCE. [UP ARROW] [UP ARROW] RUSSELL 3000 CLASS A SHARES VALUE INDEX 16.88% 17.33% THE RUSSELL 3000 VALUE INDEX IS AN UNMANAGED INDEX THAT MEASURES THE PERFORMANCE OF THOSE RUSSELL 3000 INDEX COMPANIES WITH LOWER PRICE-TO-BOOK RATIOS AND LOWER FORECASTED GROWTH VALUES. OBJECTIVE Seeks long-term growth of capital by using a "value" approach to investing primarily in common stocks. TOTAL NET ASSETS $525.8 million NET ASSET VALUE PER SHARE AS OF 08/31/05 ($) Class A 21.21 - ----------------------------------------- Class B 20.84 - ----------------------------------------- Class C 20.85 - ----------------------------------------- Class D 20.84 - ----------------------------------------- Class Z 21.27 For the 12-month period ended August 31, 2005, Columbia Strategic Investor Fund class A shares returned 16.88% without sales charge. The fund trailed the 17.33% return of the Russell 3000 Value Index, but it surpassed the 12.56% return of the S&P 500 Index. The fund also outperformed the 16.32% average return of its peer group, the Lipper Multi-Cap Value Fund Category. 1 The fund's competitive performance can be attributed to strong stock selection across a number of sectors. A decision to maintain a defensive stance and larger-than-average cash position detracted somewhat from results. BENEFICIARIES OF RISING COMMODITY PRICES Throughout the reporting period, we focused on the potential beneficiaries of rising commodity prices. We believe that emerging markets have propelled demand for energy and raw materials, and companies in these sectors benefited as prices were driven upward by increased demand and limited supply. In the energy sector, the fund's oil service and offshore exploration holdings benefited from heightened demand. Transocean, TGS Nopec Geophysical and Newfield Exploration were all strong contributors. One disappointment in this sector was Input/Output, which suffered revenue disappointments. In the materials sector, Potash Corp. of Saskatchewan gained 98% for the fund as a result of higher prices and greater demand for potash. Companhia Vale do Rio Doce, a leading iron ore miner, was up 83% for the fund as it benefited from strong demand. Our focus on commodities extended to the industrials sector, where we targeted capital equipment producers that appeared well positioned in the favorable environment. Caterpillar and Bucyrus International were two such companies and gained 56% and 72% for the fund, respectively. However, not all industrials names were winners: 3M's 13% decline in stock price and Avery Dennison's 12% decline detracted from performance. STRENGTH IN CONSUMER DISCRETIONARY STOCKS The consumer discretionary sector was a strong area for the portfolio, with some foreign holdings leading performance. Finnish companies Nokian Renkaat Oyj, a tire company, and Stockmann, a department store retailer, benefited from growth in Eastern European markets. On the domestic front, low prices, a wide selection and a focus on customer satisfaction kept sales growing at specialty auto retailer CarMax, which gained 63% for the fund. 1 Lipper Inc., a widely respected data provider in the industry, calculates an average total return (assuming reinvestment of distributions) for mutual funds with investment objectives similar to those of the fund. Lipper makes no adjustment for the effect of sales loads. 24 ________________________________________________________________________________ COLUMBIA STRATEGIC INVESTOR FUND (Sidebar) DISTRIBUTIONS DECLARED PER SHARE 09/01/04 - 08/31/05 ($) Class A 0.25 - ----------------------------------------- Class B 0.22 - ----------------------------------------- Class C 0.22 - ----------------------------------------- Class D 0.22 - ----------------------------------------- Class Z 0.29 TOP 5 SECTORS AS OF 08/31/05 (%) Health care 12.1 - ----------------------------------------- Financials 10.8 - ----------------------------------------- Industrials 8.9 - ----------------------------------------- Consumer discretionary 8.9 - ----------------------------------------- Information technology 8.6 TOP TEN HOLDINGS AS OF 08/31/05 (%) Nokian Renkaat Oyj 1.1 - ----------------------------------------- Potash Corp. of Saskatchewan 1.0 - ----------------------------------------- Schlumberger 0.9 - ----------------------------------------- Altria Group 0.9 - ----------------------------------------- Transocean 0.8 - ----------------------------------------- JPMorgan Chase 0.8 - ----------------------------------------- Samsung Electronics 0.7 - ----------------------------------------- Newfield Exploration 0.7 - ----------------------------------------- Hospira 0.7 - ----------------------------------------- Exxon Mobil 0.7 HOLDINGS DISCUSSED IN THIS REPORT AS OF 08/31/05 (%) Transocean 0.8 - ----------------------------------------- TGS Nopec Geophysical 0.6 - ----------------------------------------- Newfield Exploration 0.7 - ----------------------------------------- Input/Output 0.2 - ----------------------------------------- Potash Corp. of Saskatchewan 1.0 - ----------------------------------------- Companhia Vale do Rio Doce 0.5 - ----------------------------------------- Caterpillar 0.6 - ----------------------------------------- Bucyrus International 0.1 - ----------------------------------------- 3M 0.3 - ----------------------------------------- Avery Dennison 0.6 - ----------------------------------------- Nokian Renkaat Oyj 1.1 - ----------------------------------------- Stockmann Oyj 0.6 - ----------------------------------------- CarMax 0.2 - ----------------------------------------- Eli Lilly 0.3 - ----------------------------------------- Pfizer 0.4 - ----------------------------------------- Biogen Idec 0.4 - ----------------------------------------- Elan 0.2 Your fund is actively managed and the composition of its portfolio will change over time. Information provided is calculated as a percentage of net assets. HEALTH CARE OUTPERFORMED DESPITE CERTAIN CHALLENGES The fund's health care holdings generally performed well, and the sector was another strong contributor to the portfolio's return. However, some large pharmaceutical companies detracted from the group's return. Eli Lilly declined on poor sales reports, and Pfizer struggled with risks associated with a popular pain management drug, litigation and patent expiration. Also on the downside, Biogen Idec and Elan suffered declines on the announcement of a voluntary suspension in the marketing of Tysabri, a treatment for multiple sclerosis. GRADUALLY SHIFTED THE FUND'S EMPHASIS We continued to shift the fund's emphasis from small- and mid-cap stocks and value names toward large-cap companies with higher growth potential. And, we plan to seek out companies with less sensitivity to economic cycles and an ability to maintain stable growth as the economy matures. However, we remain cautious about putting cash to work too quickly, as we believe that recent interest rate increases could result in some slowing in 2006. In addition, we will continue to evaluate investment opportunities overseas, considering areas with compelling growth trends and reasonable prices. Robert A. Unger, CFA, has managed or co-managed Columbia Strategic Investor Fund since November 2000 and has been with the advisor or its predecessors or affiliate organizations since 1984. /s/ Robert A. Unger Emil A. Gjester has served as an assistant portfolio manager or co-portfolio manager of the fund since November 2002 and has been with the advisor or its predecessors or affiliate organizations since 1996. /s/ Emil A. Gjester Equity investments are affected by stock market fluctuations that occur in response to economic and business developments. 25 PERFORMANCE INFORMATION ________________________________________________________ COLUMBIA BALANCED FUND PERFORMANCE OF A $10,000 INVESTMENT 09/01/95 - 08/31/05 ($) SALES CHARGE WITHOUT WITH - ----------------------------------------- Class A 20,328 19,162 - ----------------------------------------- Class B 19,903 19,903 - ----------------------------------------- Class C 19,904 19,904 - ----------------------------------------- Class D 19,930 19,729 - ----------------------------------------- Class Z 20,533 n/a PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT PERFORMANCE MAY BE LOWER OR HIGHER. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. PLEASE VISIT WWW.COLUMBIAFUNDS.COM FOR DAILY AND MOST RECENT MONTH-END PERFORMANCE UPDATES. GROWTH OF A $10,000 INVESTMENT 09/01/95 - 08/31/05 [MOUNTAIN CHART] CLASS A SHARES CLASS A LEHMAN WITHOUT SHARES BROTHERS SALES WITH SALES S&P AGGREGATE CHARGE CHARGE 500 INDEX BOND INDEX -------- ---------- --------- ---------- 09/95 10228.00 9639.89 10422.00 10097.00 10212.70 9625.43 10384.50 10228.30 10515.00 9910.34 10840.40 10381.70 10763.10 10144.20 11049.60 10527.00 10897.60 10271.00 11425.30 10596.50 10892.20 10265.90 11531.50 10412.10 10978.20 10347.00 11642.20 10339.20 11021.10 10387.40 11813.40 10281.30 11129.10 10489.10 12118.10 10260.80 11232.60 10586.70 12164.20 10398.30 11003.40 10370.70 11626.50 10426.40 11178.40 10535.60 11871.90 10408.60 11517.10 10854.90 12540.20 10589.70 11654.10 10984.00 12886.40 10824.80 12159.90 11460.70 13860.60 11009.90 12032.20 11340.40 13586.10 10907.50 12328.20 11619.40 14435.30 10941.40 12364.00 11653.10 14547.90 10968.70 12178.50 11478.30 13949.90 10847.00 12519.50 11799.70 14782.80 11009.70 12937.70 12193.80 15683.00 11114.20 13325.80 12559.60 16385.60 11246.50 14085.40 13275.50 17689.90 11550.20 13657.20 12871.90 16699.30 11452.00 14043.70 13236.20 17614.40 11620.30 13885.00 13086.60 17026.10 11788.80 14158.50 13344.40 17814.40 11843.10 14286.00 13464.50 18120.80 11962.70 14486.00 13653.00 18321.90 12115.80 14993.00 14130.90 19642.90 12106.10 15420.30 14533.60 20648.70 12147.30 15508.20 14616.40 20857.20 12210.40 15441.50 14553.60 20498.50 12326.40 15958.80 15041.10 21330.70 12431.20 15891.70 14978.00 21104.60 12457.30 14698.30 13853.10 18052.90 12660.40 15199.50 14325.50 19210.10 12956.60 15691.90 14789.60 20771.80 12887.90 16272.50 15336.90 22030.60 12961.40 17154.50 16168.10 23299.60 13000.30 17643.40 16628.90 24273.50 13092.60 17251.70 16259.80 23518.60 12863.50 17814.10 16789.80 24459.30 12934.20 17985.20 16951.00 25405.90 12975.60 17634.50 16620.50 24806.30 12861.40 18237.50 17188.90 26183.10 12820.30 17876.40 16848.50 25366.20 12765.10 17665.50 16649.70 25241.90 12758.80 17582.50 16571.50 24550.20 12906.80 18127.50 17085.20 26104.30 12954.50 18513.60 17449.10 26634.20 12953.20 19330.10 18218.60 28203.00 12891.00 18883.60 17797.80 26787.20 12848.50 19431.20 18313.90 26280.90 13004.00 20667.00 19478.70 28851.20 13175.60 20235.10 19071.60 27982.70 13137.40 19731.20 18596.70 27409.10 13130.80 20384.30 19212.20 28086.10 13404.00 20321.10 19152.70 27648.00 13525.90 21192.90 19974.30 29364.90 13722.10 20298.60 19131.40 27814.40 13808.50 19998.20 18848.30 27697.60 13899.60 19152.20 18051.00 25515.00 14127.60 19491.20 18370.50 25640.10 14390.40 19847.90 18706.70 26550.30 14626.40 18599.50 17530.00 24128.90 14753.60 17963.40 16930.50 22599.10 14827.40 18741.20 17663.60 24355.10 14765.10 18827.40 17744.80 24518.20 14853.70 18561.90 17494.60 23922.50 14910.20 18510.00 17445.60 23688.00 15244.10 17838.00 16812.40 22205.20 15419.50 16942.60 15968.40 20411.00 15599.90 17271.30 16278.20 20800.80 15925.90 17948.30 16916.30 22396.20 15706.10 18048.80 17011.00 22593.30 15605.60 17796.10 16772.80 22263.50 15732.00 17639.50 16625.20 21833.80 15884.60 17893.50 16864.70 22654.70 15620.90 17295.90 16301.40 21281.90 15924.00 17358.20 16360.10 21124.40 16059.30 16629.10 15672.90 19620.30 16197.40 15779.40 14872.00 18091.90 16393.40 15992.40 15072.80 18209.50 16670.50 15098.40 14230.20 16230.10 16940.50 15678.20 14776.70 17658.40 16862.60 16284.90 15348.50 18698.50 16857.50 15708.50 14805.20 17600.80 17206.50 15502.70 14611.30 17139.70 17222.00 15412.80 14526.50 16882.60 17459.70 15475.90 14586.10 17046.40 17445.70 16268.30 15332.90 18451.00 17590.50 16826.30 15858.80 19423.40 17917.70 16918.90 15946.00 19672.00 17881.80 16945.90 15971.50 20018.20 17281.00 17334.00 16337.30 20408.60 17395.00 17271.60 16278.50 20192.20 17856.00 17851.90 16825.40 21335.10 17690.00 18005.40 16970.10 21522.90 17732.40 18549.20 17482.60 22650.70 17913.30 18721.70 17645.20 23067.40 18056.60 19030.60 17936.40 23388.10 18251.60 18880.30 17794.70 23034.90 18388.50 18378.10 17321.30 22673.30 17910.40 18532.40 17466.80 22983.90 17838.80 18766.00 17686.90 23429.80 17940.40 18142.90 17099.70 22654.20 18118.00 18197.30 17151.00 22744.90 18464.10 18373.90 17317.40 22990.50 18514.00 18585.20 17516.50 23342.30 18669.50 19118.60 18019.20 24287.60 18520.10 19726.50 18592.20 25113.40 18690.50 19337.90 18226.00 24500.60 18808.20 19457.80 18339.00 25015.20 18697.30 19232.10 18126.20 24572.40 18601.90 18907.10 17819.90 24105.50 18853.00 19438.40 18320.70 24872.10 19056.70 19564.70 18439.70 24906.90 19161.50 20284.70 19118.30 25833.40 18987.10 08/05 20328.00 19162.30 25592.00 19234.00 The chart above shows the growth in value of a hypothetical $10,000 investment in Class A shares of Columbia Balanced Fund during the stated time period, and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. 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 $250 million par amount outstanding and with at least one year to final maturity. The Standard & Poor's (S&P) 500 Index is an unmanaged index that tracks the performance of 500 widely held, large-capitalization U.S. stocks. 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. AVERAGE ANNUAL TOTAL RETURN AS OF 08/31/05 (%)
SHARE CLASS A B C D Z - ----------------------------------------------------------------------------------------------------------------- INCEPTION 11/01/02 11/01/02 10/13/03 11/01/02 10/01/91 - ----------------------------------------------------------------------------------------------------------------- SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT - ----------------------------------------------------------------------------------------------------------------- 1-year 11.72 5.30 10.91 5.91 10.91 9.91 10.97 9.97 12.06 - ----------------------------------------------------------------------------------------------------------------- 5-year -0.83 -2.00 -1.25 -1.59 -1.25 -1.25 -1.22 -1.42 -0.63 - ----------------------------------------------------------------------------------------------------------------- 10-year 7.35 6.72 7.13 7.13 7.13 7.13 7.14 7.03 7.46
AVERAGE ANNUAL TOTAL RETURN AS OF 06/30/05 (%)
SHARE CLASS A B C D Z - ----------------------------------------------------------------------------------------------------------------- SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT - ----------------------------------------------------------------------------------------------------------------- 1-year 4.26 -1.74 3.49 -1.51 3.49 2.49 3.49 2.49 4.52 - ----------------------------------------------------------------------------------------------------------------- 5-year -0.82 -1.99 -1.21 -1.56 -1.21 -1.21 -1.20 -1.39 -0.63 - ----------------------------------------------------------------------------------------------------------------- 10-year 7.26 6.63 7.05 7.05 7.05 7.05 7.06 6.95 7.36
THE "WITH SALES CHARGE" RETURNS INCLUDE THE MAXIMUM INITIAL SALES CHARGE OF 5.75% FOR CLASS A SHARES, MAXIMUM CONTINGENT DEFERRED SALES CHARGE OF 5.00% FOR CLASS B SHARES AND 1.00% FOR CLASS C AND D SHARES FOR THE FIRST YEAR ONLY. THE "WITHOUT SALES CHARGE" RETURNS DO NOT INCLUDE THE EFFECT OF SALES CHARGES. IF THEY HAD, RETURNS WOULD BE LOWER. 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. All results shown assume reinvestment of distributions. Class Z shares are sold at net asset value with no Rule 12b-1 fees. Class Z shares are sold at net asset value with no Rule 12b-1 fees. Class Z shares have limited eligibility and the investment minimum requirement may vary. Please see the fund's prospectus for details. Performance for different share classes will vary based on differences in sales charges and fees associated with each class. Effective October 13, 2003, class D shares are closed to all new investors and new accounts. Existing class D shareholders will be able to make additional purchases at any time. In addition, class D sales charge of 1.00% is waived after October 13, 2003. 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. The returns for class C include the returns of class B prior to 10/13/03, the date on which class C was initially offered by the fund. The returns shown for class C also include the performance of class Z prior to the inception of class B (11/01/02). 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, C, and D would have been lower. 26 UNDERSTANDING YOUR EXPENSES ____________________________________________________ COLUMBIA BALANCED FUND ESTIMATING YOUR ACTUAL EXPENSES To estimate the expenses that you paid over the period, first you will need your account balance at the end of the period: o FOR SHAREHOLDERS WHO RECEIVE THEIR ACCOUNT STATEMENTS FROM COLUMBIA MANAGEMENT SERVICES, INC., YOUR ACCOUNT BALANCE IS AVAILABLE ONLINE AT WWW.COLUMBIAFUNDS.COM OR BY CALLING SHAREHOLDER SERVICES AT 800.345.6611 o FOR SHAREHOLDERS WHO RECEIVE THEIR ACCOUNT STATEMENTS FROM THEIR BROKERAGE FIRM, CONTACT YOUR BROKERAGE FIRM TO OBTAIN YOUR ACCOUNT BALANCE 1. DIVIDE YOUR ENDING ACCOUNT BALANCE BY $1,000. FOR EXAMPLE, IF AN ACCOUNT BALANCE WAS $8,600 AT THE END OF THE PERIOD, THE RESULT WOULD BE 8.6 2. IN THE SECTION OF THE TABLE BELOW TITLED "EXPENSES PAID DURING THE PERIOD," LOCATE THE AMOUNT FOR YOUR SHARE CLASS. YOU WILL FIND THIS NUMBER IS IN THE COLUMN LABELED "ACTUAL." MULTIPLY THIS NUMBER BY THE RESULT FROM STEP 1. YOUR ANSWER IS AN ESTIMATE OF THE EXPENSES YOU PAID ON YOUR ACCOUNT DURING THE PERIOD As a fund shareholder, you incur two types of costs. There are transaction costs, which generally include sales charges on purchases and may include redemption or exchange fees. There are also ongoing costs, which generally include investment advisory fees, Rule 12b-1 fees and other fund expenses. The information on this page is intended to help you understand your ongoing costs of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. ANALYZING YOUR FUND'S EXPENSES BY SHARE CLASS To illustrate these ongoing costs, we have provided an example and calculated the expenses paid by investors in each share class during the reporting period. The information in the following table is based on an initial investment of $1,000, which is invested at the beginning of the reporting period and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the "actual" column is calculated using the fund's actual operating expenses and total return for the period. The amount listed in the "hypothetical" column for each share class assumes that the return each year is 5% before expenses and includes the fund's actual expense ratio. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during this reporting period. 03/01/05 - 08/31/05
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID FUND'S ANNUALIZED BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($) EXPENSE RATIO (%) - ------------------------------------------------------------------------------------------------------------ ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL - ------------------------------------------------------------------------------------------------------------ Class A 1,000.00 1,000.00 1,044.82 1,020.16 5.15 5.09 1.00 - ------------------------------------------------------------------------------------------------------------ Class B 1,000.00 1,000.00 1,040.88 1,016.38 9.00 8.89 1.75 - ------------------------------------------------------------------------------------------------------------ Class C 1,000.00 1,000.00 1,040.88 1,016.38 9.00 8.89 1.75 - ------------------------------------------------------------------------------------------------------------ Class D 1,000.00 1,000.00 1,040.88 1,016.38 9.00 8.89 1.75 - ------------------------------------------------------------------------------------------------------------ Class Z 1,000.00 1,000.00 1,046.08 1,021.42 3.87 3.82 0.75
Expenses paid during the period are equal to the fund's annualized expense ratio, multiplied by the average account value over the period, then multiplied by the number of days in the fund's most recent fiscal half-year and divided by 365. It is important to note that the expense amounts shown in the table are meant to highlight only ongoing costs of investing in the fund and do not reflect any transactional costs, such as sales charges, redemption or exchange fees. Therefore, the hypothetical examples provided may not help you determine the relative total costs of owning different funds. If these transactional costs were included, your costs would have been higher. COMPARE WITH OTHER FUNDS Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the fund with other funds. To do so, compare the 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the continuing cost of investing in a fund and do not reflect any transactional costs, such as sales charges or redemption or exchange fees. 27 PORTFOLIO MANAGERS' REPORT _____________________________________________________ COLUMBIA BALANCED FUND (sidebar) PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT PERFORMANCE MAY BE LOWER OR HIGHER. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. PLEASE VISIT WWW.COLUMBIAFUNDS.COM FOR DAILY AND MOST RECENT MONTH-END PERFORMANCE UPDATES. SUMMARY o FOR THE 12-MONTH PERIOD ENDED AUGUST 31, 2005, THE FUND'S CLASS A SHARES RETURNED 11.72% WITHOUT SALES CHARGE. o THE FUND PERFORMED WELL ABOVE THE BLENDED RETURN OF THE S&P 500 INDEX AND THE LEHMAN BROTHERS AGGREGATE BOND INDEX. o HEALTH CARE AND TECHNOLOGY INVESTMENTS ASSISTED RESULTS ON THE EQUITY SIDE, WHILE MORTGAGES AND CORPORATE BONDS ENHANCED THE FUND'S FIXED-INCOME PERFORMANCE. [UP ARROW] [UP ARROW] S&P 500 CLASS A SHARES INDEX 11.72% 12.56% THE STANDARD & POOR'S (S&P) 500 INDEX IS AN UNMANAGED INDEX THAT TRACKS THE PERFORMANCE OF 500 WIDELY HELD, LARGE-CAPITALIZATION U.S. STOCKS. THE LEHMAN BROTHERS AGGREGATE BOND INDEX IS A MARKET VALUE-WEIGHTED INDEX THAT TRACKS THE PERFORMANCE OF FIXED-RATE, PUBLICLY PLACED, DOLLAR-DENOMINATED, NON-CONVERTIBLE INVESTMENT GRADE DEBT ISSUES. OBJECTIVE Seeks high total return by investing in common stocks and debt securities. TOTAL NET ASSETS $313.9 million For the 12-month period ended August 31, 2005, Columbia Balanced Fund class A shares returned 11.72% without sales charge. The S&P 500 Index returned 12.56% and the Lehman Brothers Aggregate Bond Index returned 4.15%. The fund's return surpassed the 10.66% average return of the Lipper Balanced Funds Category. 1 We believe that superior stock selection and solid results from corporate bonds aided the fund relative to its peer group. STRONG SHOWING FROM EQUITIES The portfolio benefited from the strong performance of its equity holdings, which accounted for 63% of the fund's assets at the beginning of the period. Our contrarian approach to stock selection led us to attractive opportunities, notably in the health care sector. We identified generic drug manufacturers, who have been able to avoid the severe price competition that many investors feared would hurt the industry. They outperformed major pharmaceutical companies, which have been hurt by legal difficulties and impending patent expirations. In this regard, portfolio holdings IVAX and Endo Pharmaceuticals Holdings were strong performers. Also in the health care sector, drug distributors such as McKesson, AmerisourceBergen and Cardinal Health continued to adjust their business models so that they now receive a higher percentage of fees for specific services rather than depending solely on the price appreciation of drugs held in inventory to boost their earnings. The portfolio also benefited from its technology investments. The list of strong performers included new selections such as Corning, the leading manufacturer of the glass used in flat-panel displays, and SanDisk, the market leader in Nanflash, a memory technology found in cameras and MP3 players. Meanwhile, long-time holding Hewlett-Packard regained strength. Investors responded favorably to new management's efforts to reduce overhead costs. Although the fund was successful in many of its individual stock selections, it gave up some opportunity with respect to its sector allocations. In particular, our contrarian style led us to take profits in the fund's energy holdings and we missed out on what became an extended rally. The portfolio was also underweight in the stocks of public utilities, many of which were pushed higher by the spike in energy prices. FIXED-INCOME RECAP Within the fixed income portion of the portfolio, an emphasis on mortgage-backed, corporate and high-yield bonds was a good match with a market willing to take on risk. However, our decision to maintain a relatively short average maturity hurt results somewhat, because securities with maturities of 10 years or more were the bond market's best performers. Altogether, the fixed-income segment of the portfolio performed in line with its benchmark. 1 Lipper Inc., a widely respected data provider in the industry, calculates an average total return (assuming reinvestment of distributions) for mutual funds with investment objectives similar to those of the fund. Lipper makes no adjustment for the effect of sales loads. 28 ________________________________________________________________________________ COLUMBIA BALANCED FUND (Sidebar) NET ASSET VALUE PER SHARE AS OF 08/31/05 ($) Class A 21.75 - ----------------------------------------- Class B 21.72 - ----------------------------------------- Class C 21.72 - ----------------------------------------- Class D 21.72 - ----------------------------------------- Class Z 21.74 DISTRIBUTIONS DECLARED PER SHARE 09/01/04 - 08/31/05 ($) Class A 0.41 - ----------------------------------------- Class B 0.26 - ----------------------------------------- Class C 0.26 - ----------------------------------------- Class D 0.26 - ----------------------------------------- Class Z 0.47 PORTFOLIO COMPOSITION AS OF 08/31/05 (%) Common stocks 59.0 - ----------------------------------------- Mortgage-backed securities 13.2 - ----------------------------------------- Corporate fixed-income bonds & notes 12.8 - ----------------------------------------- Government agencies & obligations 6.4 - ----------------------------------------- Collateralized mortgage obligations 2.6 - ----------------------------------------- Asset-backed securities 1.7 - ----------------------------------------- Commercial mortgage-backed securities 1.5 - ----------------------------------------- Cash & cash equivalents, net receivables & payables 2.8 TOP 10 EQUITY HOLDINGS AS OF 08/31/05 (%) Microsoft 1.8 - ----------------------------------------- Berkshire Hathaway 1.2 - ----------------------------------------- Time Warner 1.2 - ----------------------------------------- American International Group 1.1 - ----------------------------------------- Amgen 1.1 - ----------------------------------------- WebMD 1.1 - ----------------------------------------- UnumProvident 1.1 - ----------------------------------------- Honeywell International 1.0 - ----------------------------------------- Millennium Pharmaceuticals 0.9 - ----------------------------------------- JPMorgan Chase 0.9 HOLDINGS DISCUSSED IN THIS REPORT AS OF 08/31/05 (%) IVAX 0.6 - ----------------------------------------- Endo Pharmaceuticals Holdings 0.6 - ----------------------------------------- McKesson 0.4 - ----------------------------------------- AmerisourceBergen 0.4 - ----------------------------------------- Cardinal Health 0.6 - ----------------------------------------- Corning 0.7 - ----------------------------------------- SanDisk 0.6 - ----------------------------------------- Hewlett-Packard 0.8 Your fund is actively managed and the composition of its portfolio will change over time. Information provided is calculated as a percentage of net assets. REDUCING RISK FOR THE YEAR AHEAD With energy prices and short-term interest rates moving higher, we believe that corporate earnings and overall economic growth could come under pressure. As a result, we have become slightly more cautious about the equity market. For stock selection, we expect to find more opportunities among larger-capitalization growth stocks. We believe that this area of the market has the potential to perform relatively better, given the slowing economic and earnings backdrop mentioned. Growth stocks have been out of favor for a number of years and meet the criteria of our contrarian approach. In the fixed-income arena, we have reduced the fund's commitment to corporate bonds but have retained our positions in mortgages, where we believe we can obtain additional yield without sacrificing credit quality. In addition, we have maintained a position in TIPS (Treasury Inflation Protected Securities) in case the economy experiences higher- than-expected inflation in the year ahead. Columbia Balanced Fund is managed by a manager from Columbia's large cap core team: Guy W. Pope has been associated with Columbia Management or its predecessors since 1993. /s/ Guy W. Pope and managers from Columbia's bond team: Leonard A. Aplet has been associated with Columbia Management or its predecessors since 1987. /s/ Leonard A. Aplet Ron B. Stahl has been associated with Columbia Management or its predecessors since 1998. /s/ Ron B. Stahl Equity investments are affected by stock market fluctuations that occur in response to economic and business developments. Investing in fixed-income securities may involve certain risks, including the credit quality of individual issuers, possible prepayments, market or economic developments and yield and share price fluctuations due to changes in interest rates. When interest rates go up, bond prices typically drop, and vice versa. Investing in high-yield securities (commonly known as "junk" bonds) offers the potential for high current income and attractive total returns but involves certain risks. Changes in economic conditions or other circumstances may adversely affect a junk bond issuer's ability to make principal and interest payments. Rising interest rates tend to lower the value of all bonds. 29 PERFORMANCE INFORMATION ________________________________________________________ COLUMBIA SHORT TERM BOND FUND PERFORMANCE OF A $10,000 INVESTMENT 09/01/95 -- 08/31/05 ($) SALES CHARGE WITHOUT WITH - --------------------------------------- Class A 15,768 15,018 - --------------------------------------- Class B 15,428 15,428 - --------------------------------------- Class C 15,601 15,601 - --------------------------------------- Class D 15,696 15,545 - --------------------------------------- Class G 15,525 15,525 - --------------------------------------- Class T 15,814 15,063 - --------------------------------------- Class Z 15,894 n/a PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT PERFORMANCE MAY BE LOWER OR HIGHER. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. PLEASE VISIT WWW.COLUMBIAFUNDS.COM FOR DAILY AND MOST RECENT MONTH-END PERFORMANCE UPDATES. GROWTH OF A $10,000 INVESTMENT 09/01/95 - 08/31/05 [MOUNTAIN CHART] MERRILL LYNCH CLASS A SHARES CLASS A SHARES MERRILL LYNCH 1-5 YEAR WITHOUT SALES WITH SALES 1-3 YEAR GOVERNMENT/ CHARGE CHARGE TREASURY INDEX CORPORATE INDEX -------------- -------------- -------------- --------------- 09/95 10000.00 9525.00 10000.00 10000.00 10043.00 9566.00 10049.00 10057.00 10136.00 9655.00 10133.00 10156.00 10241.00 9754.00 10223.00 10263.00 10321.00 9830.00 10301.00 10356.00 10413.00 9918.00 10389.00 10448.00 10339.00 9848.00 10345.00 10376.00 10292.00 9803.00 10336.00 10347.00 10282.00 9793.00 10344.00 10336.00 10287.00 9798.00 10366.00 10343.00 10367.00 9875.00 10441.00 10432.00 10400.00 9906.00 10481.00 10470.00 10420.00 9925.00 10517.00 10495.00 10530.00 10029.00 10613.00 10611.00 10655.00 10149.00 10733.00 10757.00 10739.00 10229.00 10815.00 10862.00 10720.00 10210.00 10815.00 10834.00 10765.00 10253.00 10866.00 10883.00 10780.00 10268.00 10891.00 10901.00 10748.00 10238.00 10887.00 10875.00 10847.00 10332.00 10976.00 10980.00 10908.00 10390.00 11051.00 11060.00 10980.00 10459.00 11127.00 11146.00 11107.00 10580.00 11249.00 11310.00 11100.00 10572.00 11259.00 11294.00 11172.00 10641.00 11345.00 11399.00 11259.00 10724.00 11429.00 11502.00 11264.00 10728.00 11456.00 11524.00 11338.00 10799.00 11534.00 11609.00 11452.00 10908.00 11646.00 11745.00 11439.00 10895.00 11657.00 11742.00 11471.00 10926.00 11704.00 11788.00 11529.00 10982.00 11759.00 11844.00 11589.00 11039.00 11822.00 11916.00 11634.00 11082.00 11883.00 11985.00 11681.00 11126.00 11939.00 12039.00 11839.00 11276.00 12089.00 12213.00 12009.00 11439.00 12249.00 12432.00 12068.00 11495.00 12309.00 12472.00 12024.00 11453.00 12298.00 12454.00 12068.00 11494.00 12341.00 12500.00 12109.00 11534.00 12390.00 12563.00 12014.00 11444.00 12330.00 12450.00 12097.00 11523.00 12415.00 12552.00 12121.00 11546.00 12454.00 12593.00 12089.00 11514.00 12447.00 12544.00 12127.00 11551.00 12486.00 12581.00 12153.00 11576.00 12525.00 12594.00 12164.00 11586.00 12562.00 12620.00 12234.00 11653.00 12643.00 12722.00 12248.00 11666.00 12678.00 12751.00 12260.00 11678.00 12702.00 12772.00 12283.00 11700.00 12719.00 12774.00 12272.00 11689.00 12714.00 12746.00 12348.00 11762.00 12800.00 12836.00 12398.00 11809.00 12879.00 12937.00 12431.00 11841.00 12912.00 12946.00 12482.00 11889.00 12965.00 12983.00 12579.00 11982.00 13100.00 13155.00 12632.00 12032.00 13183.00 13248.00 12717.00 12113.00 13280.00 13371.00 12770.00 12164.00 13376.00 13492.00 12825.00 12216.00 13448.00 13552.00 12968.00 12352.00 13576.00 13708.00 13176.00 12551.00 13737.00 13907.00 13338.00 12705.00 13909.00 14108.00 13448.00 12809.00 14000.00 14219.00 13546.00 12903.00 14116.00 14348.00 13561.00 12917.00 14154.00 14357.00 13640.00 12992.00 14233.00 14441.00 13687.00 13037.00 14282.00 14495.00 13897.00 13237.00 14441.00 14727.00 14009.00 13344.00 14525.00 14834.00 14198.00 13524.00 14765.00 15100.00 14372.00 13689.00 14905.00 15278.00 14278.00 13600.00 14872.00 15186.00 14243.00 13566.00 14878.00 15154.00 14295.00 13616.00 14908.00 15198.00 14360.00 13677.00 14980.00 15292.00 14278.00 13600.00 14878.00 15139.00 14450.00 13764.00 15044.00 15348.00 14539.00 13848.00 15105.00 15467.00 14624.00 13930.00 15231.00 15601.00 14711.00 14012.00 15417.00 15801.00 14815.00 14111.00 15470.00 15935.00 14969.00 14258.00 15598.00 16138.00 14888.00 14181.00 15634.00 16136.00 14891.00 14184.00 15586.00 16107.00 15027.00 14313.00 15734.00 16353.00 15045.00 14330.00 15732.00 16361.00 15164.00 14443.00 15798.00 16505.00 15177.00 14456.00 15827.00 16538.00 15237.00 14513.00 15857.00 16613.00 15351.00 14622.00 15917.00 16791.00 15357.00 14628.00 15941.00 16812.00 15131.00 14413.00 15855.00 16596.00 15149.00 14430.00 15866.00 16606.00 15310.00 14583.00 16010.00 16870.00 15261.00 14536.00 15951.00 16767.00 15250.00 14526.00 15943.00 16765.00 15346.00 14617.00 16035.00 16892.00 15391.00 14660.00 16067.00 16955.00 15436.00 14702.00 16145.00 17077.00 15497.00 14761.00 16195.00 17173.00 15361.00 14631.00 16039.00 16905.00 15313.00 14586.00 16025.00 16861.00 15322.00 14595.00 16023.00 16879.00 15387.00 14656.00 16081.00 16977.00 15488.00 14753.00 16192.00 17167.00 15501.00 14764.00 16177.00 17167.00 15547.00 14809.00 16227.00 17246.00 15507.00 14770.00 16146.00 17127.00 15558.00 14819.00 16180.00 17194.00 15574.00 14834.00 16174.00 17187.00 15574.00 14834.00 16136.00 17120.00 15538.00 14800.00 16138.00 17086.00 15612.00 14871.00 16228.00 17221.00 15689.00 14944.00 16290.00 17319.00 15730.00 14982.00 16323.00 17371.00 15695.00 14950.00 16277.00 17279.00 08/05 15768.00 15019.00 16373.00 17431.00 The chart above shows the growth in value of a hypothetical $10,000 investment in Class A shares of Columbia Short Term Bond Fund during the stated time period, and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The Merrill Lynch 1-3 Year Treasury Index is an unmanaged index that measures the return of Treasury notes and bonds with maturities of 1-3 years and a minimum amount outstanding of $1 billion. 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. 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. AVERAGE ANNUAL TOTAL RETURN AS OF 08/31/05 (%)
SHARE CLASS A B C D G T Z - ------------------------------------------------------------------------------------------------------------------------------- INCEPTION 11/01/02 11/01/02 10/13/03 11/01/02 11/01/02 11/01/02 11/06/86 - ------------------------------------------------------------------------------------------------------------------------------- SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT - ------------------------------------------------------------------------------------------------------------------------------- 1-year 1.83 -3.00 1.07 -3.88 1.69 0.70 1.69 0.70 1.28 -3.67 1.94 -2.90 2.08 - ------------------------------------------------------------------------------------------------------------------------------- 5-year 4.40 3.39 3.94 3.60 4.18 4.18 4.30 4.10 4.08 3.56 4.46 3.45 4.56 - ------------------------------------------------------------------------------------------------------------------------------- 10-year 4.66 4.15 4.43 4.43 4.55 4.55 4.61 4.51 4.50 4.50 4.69 4.18 4.74
AVERAGE ANNUAL TOTAL RETURN AS OF 06/30/05 (%)
SHARE CLASS A B C D G T Z - ------------------------------------------------------------------------------------------------------------------------------- SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT - ------------------------------------------------------------------------------------------------------------------------------- 1-year 2.64 -2.26 1.86 -3.14 2.50 1.50 2.48 1.48 2.08 -2.92 2.73 -2.17 2.89 - ------------------------------------------------------------------------------------------------------------------------------- 5-year 4.57 3.55 4.14 3.80 4.35 4.35 4.48 4.27 4.26 3.75 4.62 3.61 4.72 - ------------------------------------------------------------------------------------------------------------------------------- 10-year 4.72 4.21 4.51 4.51 4.61 4.61 4.68 4.57 4.57 4.57 4.75 4.24 4.80
THE "WITH SALES CHARGE" RETURNS INCLUDE THE MAXIMUM INITIAL SALES CHARGE OF 4.75% FOR CLASS A AND T SHARES, MAXIMUM CONTINGENT DEFERRED SALES CHARGE OF 5.00% FOR CLASS B AND G SHARES AND 1.00% FOR CLASS C AND D SHARES FOR THE FIRST YEAR ONLY. THE "WITHOUT SALES CHARGE" RETURNS DO NOT INCLUDE THE EFFECT OF SALES CHARGES. IF THEY HAD, RETURNS WOULD BE LOWER. 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. All results shown assume reinvestment of distributions. Class Z shares are sold at net asset value with no Rule 12b-1 fees. Class Z shares have limited eligibility and the investment minimum requirement may vary. Please see the fund's prospectus for details. Performance for different share classes will vary based on differences in sales charges and fees associated with each class. Effective October 13, 2003, class D shares are closed to all new investors and new accounts. Existing class D shareholders will be able to make additional purchases at any time. In addition, class D sales charge of 1.00% is waived after October 13, 2003. 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. The returns for class C include the returns of class B prior to 10/13/03, the date on which class C was initially offered by the fund. The returns shown for class C also include the performance of class Z prior to the inception of class B (11/01/02). 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, C, D, G and T would have been lower. 30 UNDERSTANDING YOUR EXPENSES ____________________________________________________ COLUMBIA SHORT TERM BOND FUND ESTIMATING YOUR ACTUAL EXPENSES To estimate the expenses that you paid over the period, first you will need your account balance at the end of the period: o FOR SHAREHOLDERS WHO RECEIVE THEIR ACCOUNT STATEMENTS FROM COLUMBIA MANAGEMENT SERVICES, INC., YOUR ACCOUNT BALANCE IS AVAILABLE ONLINE AT WWW.COLUMBIAFUNDS.COM OR BY CALLING SHAREHOLDER SERVICES AT 800.345.6611 o FOR SHAREHOLDERS WHO RECEIVE THEIR ACCOUNT STATEMENTS FROM THEIR BROKERAGE FIRM, CONTACT YOUR BROKERAGE FIRM TO OBTAIN YOUR ACCOUNT BALANCE 1. DIVIDE YOUR ENDING ACCOUNT BALANCE BY $1,000. FOR EXAMPLE, IF AN ACCOUNT BALANCE WAS $8,600 AT THE END OF THE PERIOD, THE RESULT WOULD BE 8.6 2. IN THE SECTION OF THE TABLE BELOW TITLED "EXPENSES PAID DURING THE PERIOD," LOCATE THE AMOUNT FOR YOUR SHARE CLASS. YOU WILL FIND THIS NUMBER IS IN THE COLUMN LABELED "ACTUAL." MULTIPLY THIS NUMBER BY THE RESULT FROM STEP 1. YOUR ANSWER IS AN ESTIMATE OF THE EXPENSES YOU PAID ON YOUR ACCOUNT DURING THE PERIOD As a fund shareholder, you incur two types of costs. There are transaction costs, which generally include sales charges on purchases and may include redemption or exchange fees. There are also ongoing costs, which generally include investment advisory fees, Rule 12b-1 fees and other fund expenses. The information on this page is intended to help you understand your ongoing costs of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. ANALYZING YOUR FUND'S EXPENSES BY SHARE CLASS To illustrate these ongoing costs, we have provided an example and calculated the expenses paid by investors in each share class during the reporting period. The information in the following table is based on an initial investment of $1,000, which is invested at the beginning of the reporting period and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the "actual" column is calculated using the fund's actual operating expenses and total return for the period. The amount listed in the "hypothetical" column for each share class assumes that the return each year is 5% before expenses and includes the fund's actual expense ratio. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during this reporting period. 03/01/05 - 08/31/05
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID FUND'S ANNUALIZED BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($) EXPENSE RATIO (%) - ----------------------------------------------------------------------------------------------------------------------------- ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL - ----------------------------------------------------------------------------------------------------------------------------- Class A 1,000.00 1,000.00 1,014.01 1,020.82 4.42 4.43 0.87 - ----------------------------------------------------------------------------------------------------------------------------- Class B 1,000.00 1,000.00 1,010.18 1,017.04 8.21 8.24 1.62 - ----------------------------------------------------------------------------------------------------------------------------- Class C 1,000.00 1,000.00 1,013.41 1,020.06 5.18 5.19 1.02 - ----------------------------------------------------------------------------------------------------------------------------- Class D 1,000.00 1,000.00 1,013.41 1,020.06 5.18 5.19 1.02 - ----------------------------------------------------------------------------------------------------------------------------- Class G 1,000.00 1,000.00 1,011.29 1,018.05 7.20 7.22 1.42 - ----------------------------------------------------------------------------------------------------------------------------- Class T 1,000.00 1,000.00 1,014.62 1,021.32 3.91 3.92 0.77 - ----------------------------------------------------------------------------------------------------------------------------- Class Z 1,000.00 1,000.00 1,015.32 1,022.08 3.15 3.16 0.62
Expenses paid during the period are equal to the fund's annualized expense ratio, multiplied by the average account value over the period, then multiplied by the number of days in the fund's most recent fiscal half-year and divided by 365. Had the Fund's Investment Advisor and/or Distributor not reimbursed a portion of expenses, total return would have been reduced. It is important to note that the expense amounts shown in the table are meant to highlight only ongoing costs of investing in the fund and do not reflect any transactional costs, such as sales charges, redemption or exchange fees. Therefore, the hypothetical examples provided may not help you determine the relative total costs of owning different funds. If these transactional costs were included, your costs would have been higher. COMPARE WITH OTHER FUNDS Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the fund with other funds. To do so, compare the 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the continuing cost of investing in a fund and do not reflect any transactional costs, such as sales charges or redemption or exchange fees. 31 PORTFOLIO MANAGERS' REPORT _____________________________________________________ COLUMBIA SHORT TERM BOND FUND (Sidebar) PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT PERFORMANCE MAY BE LOWER OR HIGHER. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. PLEASE VISIT WWW.COLUMBIAFUNDS.COM FOR DAILY AND MOST RECENT MONTH-END PERFORMANCE UPDATES. SUMMARY o FOR THE 12-MONTH PERIOD ENDED AUGUST 31, 2005, THE FUND'S CLASS A SHARES RETURNED 1.83% WITHOUT SALES CHARGE. o THE FUND'S RETURN WAS HIGHER THAN BOTH THE MERRILL LYNCH 1-3 YEAR TREASURY INDEX AND THE AVERAGE RETURN OF THE LIPPER SHORT INVESTMENT GRADE DEBT FUNDS CATEGORY. o THE MATURITY STRUCTURE OF THE PORTFOLIO WAS WELL MATCHED TO INTEREST-RATE MOVEMENTS DURING THE PERIOD, WHICH AIDED PERFORMANCE. [UP ARROW] [UP ARROW] MERRILL LYNCH 1-3 CLASS A SHARES YEAR TREASURY INDEX 1.83% 1.15% THE MERRILL LYNCH 1-3 YEAR TREASURY INDEX IS AN UNMANAGED INDEX THAT MEASURES THE RETURN OF TREASURY NOTES AND BONDS WITH MATURITIES OF 1-3 YEARS AND A MINIMUM AMOUNT OUTSTANDING OF $1 BILLION. OBJECTIVE Seeks a high level of current income consistent with a high degree of principal stability by investing primarily in short- term, investment-grade, fixed income securities. TOTAL NET ASSETS $422.5 million NET ASSET VALUE PER SHARE AS OF 08/31/05 ($) Class A 8.56 - ----------------------------------------- Class B 8.56 - ----------------------------------------- Class C 8.56 - ----------------------------------------- Class D 8.56 - ----------------------------------------- Class G 8.56 - ----------------------------------------- Class T 8.56 - ----------------------------------------- Class Z 8.56 For the 12-month period ended August 31, 2005, Columbia Short Term Bond Fund class A shares returned 1.83% without sales charge. The fund's performance was higher than the benchmark Merrill Lynch 1-3 Year Treasury Index, which returned 1.15%. The fund also outperformed its peer group, the Lipper Short Term Investment Grade Debt Category, whose average return was 1.68%. 1 The maturity structure of the portfolio was well matched to interest-rate movements during the period, which aided performance. THE BARBELL MET A FLATTENED YIELD CURVE Throughout the past 12 months, we maintained a "barbell" structure that emphasized the short and long ends of the fund's maturity spectrum while de-emphasizing intermediate maturities. This strategy was a good fit with a Treasury yield curve that flattened over the course of the year. The yield curve "flattens" when short-term rates rise relative to long-term rates. Normally, the yield curve, which displays the progression of yields from short to long-term, is positively sloped. In particular, the fund benefited from the Federal Reserve Board (the Fed) repeated short-term interest rate increases. The Fed raised the federal funds rate eight times during the reporting period. 2 As short-term securities matured, we were able to reinvest the proceeds at higher rates than those available during the past two years. In addition, the coupons on the fund's floating-rate notes were reset at steadily higher levels as the year went on. ADDED VALUE OUTSIDE THE TREASURY MARKET The fund's performance was enhanced by positions in corporate bonds, which outperformed Treasury bonds for the period as a whole. Industry selection was generally favorable. The fund was overweight in energy, capital goods and consumer non-cyclical sectors, which were strong performers during the period. The fund's exposure to the automotive sector proved to be a slight detriment. The entire sector came under pressure in the spring when GM and Ford bonds were downgraded. We eliminated the fund's GMAC holdings and elected to retain small positions in Ford and Chrysler. Positions in mortgage-backed and asset-backed securities also aided the fund's performance, as bonds in these sectors outperformed Treasury securities with comparable maturities. Our ability to make significant investments in these longer-term sectors was made possible by the barbell approach, whose short-term component kept the portfolio's overall duration in check. Duration is a measure of interest-rate sensitivity. 1 Lipper, Inc., a widely respected data provider in the industry, calculates an average total return (assuming reinvestment of distributions) for mutual funds with investment objectives similar to those of the fund. Lipper makes no adjustments for the effect of sales loads. 2 The federal funds rate was increased again on August 9, 2005. 32 ________________________________________________________________________________ COLUMBIA SHORT TERM BOND FUND (Sidebar) DISTRIBUTIONS DECLARED PER SHARE 09/01/04 - 08/31/05 ($) Class A 0.24 - ----------------------------------------- Class B 0.17 - ----------------------------------------- Class C 0.22 - ----------------------------------------- Class D 0.22 - ----------------------------------------- Class G 0.19 - ----------------------------------------- Class T 0.24 - ----------------------------------------- Class Z 0.26 PORTFOLIO QUALITY AS OF 08/31/05 (%) Aaa 31.8 - ----------------------------------------- Aa 10.5 - ----------------------------------------- A 17.6 - ----------------------------------------- Baa 9.3 - ----------------------------------------- Agency 22.0 - ----------------------------------------- Treasury 8.8 Portfolio quality is calculated as a percentage of total investments. Ratings shown in the quality breakdown represent the rating assigned to a particular bond by one of the following nationally recognized rating agencies: Standard and Poor's, a division of The McGraw-Hill Companies, Inc., Moody's Investors Service, Inc. or Fitch Ratings Ltd. PORTFOLIO COMPOSITION AS OF 08/31/05 (%) Corporate fixed-income bonds & notes 33.1 - ----------------------------------------- Mortgage-backed securities 21.3 - ----------------------------------------- Collateralized mortgage obligations 16.2 - ----------------------------------------- Asset-backed securities 13.0 - ----------------------------------------- Government agencies & obligations 11.2 - ----------------------------------------- Commercial mortgage-backed securities 3.4 - ----------------------------------------- Cash & cash equivalents, net receivables & payables 1.8 MATURITY BREAKDOWN AS OF 08/31/05 (%) 0-1 years 34.7 - ----------------------------------------- 1-3 years 41.3 - ----------------------------------------- 3-5 years 22.5 - ----------------------------------------- 5-10 years 1.5 Your fund is actively managed and the composition of its portfolio will change over time. Portfolio composition and maturity breakdown are calculated as a percentage of net assets. LOOKING AHEAD As the trends of the past year unfolded, we took steps to position the portfolio to take advantage of the prevailing economic environment. Two particular aspects of this positioning are worth highlighting because we believe they remain relevant for the year ahead. First, we reduced the fund's commitment to corporate bonds, noting that their yield advantage over Treasuries has declined to historically low levels and that the steady rise in short-term interest rates could begin to crimp corporate profits. Second, we maintained a position in TIPS (Treasury Inflation Protected Securities) in case the economy experiences higher-than-expected inflation in the year ahead. The ability of the economy to weather higher energy prices has been impressive, but recent trends suggest potential benefits from securities that peg their rates to inflation. Leonard A. Aplet, CFA, has co-managed Columbia Short Term Bond Fund since November 2000 and has been with the advisor or its predecessors or affiliate organizations since 1987. /s/ Leonard A. Aplet Richard R. Cutts, CFA, has co-managed the fund since December 2002 and has been with the advisor or its predecessors or affiliate organizations since 1994. /s/ Richard R. Cutts On September 23, 2005, the Columbia Short Term Bond Fund merged into Nations Short-Term Income Fund and the Nations Short-Term Income Fund was renamed Columbia Short Term Bond Fund. Investing in fixed-income securities may involve certain risks, including the credit quality of individual issuers, possible prepayments, market or economic developments and yields and share price fluctuations due to changes in interest rates. When interest rates go up, bond prices typically drop, and vice versa. 33 PERFORMANCE INFORMATION ________________________________________________________ COLUMBIA FIXED INCOME SECURITIES FUND PERFORMANCE OF A $10,000 INVESTMENT 09/01/95 - 08/31/05 ($) SALES CHARGE WITHOUT WITH - --------------------------------------- Class A 17,971 17,121 - --------------------------------------- Class B 17,591 17,591 - --------------------------------------- Class C 17,640 17,640 - --------------------------------------- Class D 17,682 17,509 - --------------------------------------- Class Z 18,142 n/a PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT PERFORMANCE MAY BE LOWER OR HIGHER. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. PLEASE VISIT WWW.COLUMBIAFUNDS.COM FOR DAILY AND MOST RECENT MONTH-END PERFORMANCE UPDATES. GROWTH OF A $10,000 INVESTMENT 09/01/95 - 08/31/05 [MOUNTAIN CHART] CLASS A SHARES CLASS A SHARES LEHMAN BROTHERS WITHOUT SALES WITH SALES AGGREGATE CHARGE CHARGE BOND INDEX -------------- -------------- --------------- 09/95 10000.00 9525.00 10000.00 10109.00 9629.00 10097.00 10241.00 9755.00 10228.00 10398.00 9904.00 10382.00 10548.00 10047.00 10527.00 10612.00 10108.00 10597.00 10416.00 9921.00 10412.00 10347.00 9856.00 10339.00 10267.00 9780.00 10281.00 10245.00 9758.00 10261.00 10389.00 9896.00 10398.00 10406.00 9912.00 10426.00 10398.00 9904.00 10409.00 10585.00 10082.00 10590.00 10809.00 10296.00 10825.00 11009.00 10486.00 11010.00 10905.00 10387.00 10908.00 10948.00 10428.00 10941.00 10982.00 10460.00 10969.00 10866.00 10350.00 10847.00 11025.00 10502.00 11010.00 11128.00 10599.00 11114.00 11256.00 10721.00 11247.00 11565.00 11016.00 11550.00 11463.00 10918.00 11452.00 11628.00 11075.00 11620.00 11804.00 11244.00 11789.00 11840.00 11277.00 11843.00 11947.00 11380.00 11963.00 12091.00 11517.00 12116.00 12081.00 11507.00 12106.00 12109.00 11534.00 12147.00 12172.00 11594.00 12210.00 12292.00 11709.00 12326.00 12392.00 11803.00 12431.00 12411.00 11821.00 12457.00 12613.00 12014.00 12660.00 12853.00 12242.00 12957.00 12739.00 12134.00 12888.00 12793.00 12185.00 12961.00 12838.00 12228.00 13000.00 12929.00 12315.00 13093.00 12681.00 12078.00 12863.00 12762.00 12156.00 12934.00 12804.00 12196.00 12976.00 12652.00 12051.00 12861.00 12596.00 11998.00 12820.00 12511.00 11917.00 12765.00 12486.00 11893.00 12759.00 12640.00 12040.00 12907.00 12675.00 12073.00 12955.00 12691.00 12088.00 12953.00 12641.00 12041.00 12891.00 12567.00 11970.00 12849.00 12695.00 12092.00 13004.00 12856.00 12245.00 13176.00 12811.00 12202.00 13137.00 12801.00 12193.00 13131.00 13078.00 12457.00 13404.00 13171.00 12546.00 13526.00 13372.00 12736.00 13722.00 13465.00 12826.00 13809.00 13539.00 12896.00 13900.00 13786.00 13131.00 14128.00 14065.00 13397.00 14390.00 14314.00 13635.00 14626.00 14439.00 13753.00 14754.00 14517.00 13827.00 14827.00 14425.00 13740.00 14765.00 14522.00 13832.00 14854.00 14564.00 13872.00 14910.00 14898.00 14190.00 15244.00 15041.00 14326.00 15419.00 15199.00 14477.00 15600.00 15506.00 14769.00 15926.00 15312.00 14585.00 15706.00 15209.00 14487.00 15606.00 15302.00 14575.00 15732.00 15426.00 14693.00 15885.00 15209.00 14486.00 15621.00 15490.00 14754.00 15924.00 15608.00 14866.00 16059.00 15665.00 14921.00 16197.00 15816.00 15065.00 16393.00 16086.00 15322.00 16670.00 16321.00 15546.00 16941.00 16132.00 15365.00 16863.00 16114.00 15349.00 16858.00 16359.00 15582.00 17207.00 16379.00 15601.00 17222.00 16606.00 15817.00 17460.00 16595.00 15806.00 17446.00 16719.00 15925.00 17590.00 16987.00 16180.00 17918.00 16932.00 16128.00 17882.00 16392.00 15613.00 17281.00 16495.00 15712.00 17395.00 16914.00 16111.00 17856.00 16765.00 15969.00 17690.00 16757.00 15961.00 17732.00 16911.00 16108.00 17913.00 17041.00 16232.00 18057.00 17200.00 16383.00 18252.00 17320.00 16498.00 18388.00 16920.00 16117.00 17910.00 16810.00 16012.00 17839.00 16881.00 16079.00 17940.00 17041.00 16232.00 18118.00 17341.00 16517.00 18464.00 17398.00 16572.00 18514.00 17543.00 16710.00 18669.00 17406.00 16579.00 18520.00 17564.00 16730.00 18690.00 17647.00 16809.00 18808.00 17585.00 16750.00 18697.00 17444.00 16616.00 18602.00 17638.00 16800.00 18853.00 17804.00 16958.00 19057.00 17904.00 17053.00 19161.00 17773.00 16929.00 18987.00 08/05 17971.00 17121.00 19234.00 The chart above shows the growth in value of a hypothetical $10,000 investment in Class A shares of Columbia Fixed Income Securities Fund during the stated time period, and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. 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 $250 million par amount outstanding and with at least one year to final maturity. 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. AVERAGE ANNUAL TOTAL RETURN AS OF 08/31/05 (%)
SHARE CLASS A B C D Z - --------------------------------------------------------------------------------------------------------------------- INCEPTION 11/01/02 11/01/02 10/13/03 11/01/02 02/25/83 - --------------------------------------------------------------------------------------------------------------------- SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT - --------------------------------------------------------------------------------------------------------------------- 1-year 3.63 -1.28 2.86 -2.07 3.01 2.02 3.01 2.03 3.83 - --------------------------------------------------------------------------------------------------------------------- 5-year 6.09 5.06 5.64 5.32 5.70 5.70 5.75 5.53 6.29 - --------------------------------------------------------------------------------------------------------------------- 10-year 6.04 5.52 5.81 5.81 5.84 5.84 5.87 5.76 6.14
AVERAGE ANNUAL TOTAL RETURN AS OF 06/30/05 (%)
SHARE CLASS A B C D Z - --------------------------------------------------------------------------------------------------------------------- SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT - --------------------------------------------------------------------------------------------------------------------- 1-year 6.07 1.02 5.28 0.28 5.44 4.44 5.43 4.43 6.27 - -------------------------------------------------------------------------------------------------------------------- 5-year 6.49 5.46 6.06 5.74 6.11 6.11 6.16 5.94 6.68 - -------------------------------------------------------------------------------------------------------------------- 10-year 6.10 5.59 5.89 5.89 5.92 5.92 5.94 5.84 6.20
THE "WITH SALES CHARGE" RETURNS INCLUDE THE MAXIMUM INITIAL SALES CHARGE OF 4.75% FOR CLASS A SHARES, MAXIMUM CONTINGENT DEFERRED SALES CHARGE OF 5.00% FOR CLASS B SHARES AND 1.00% FOR CLASS C AND D SHARES FOR THE FIRST YEAR ONLY. THE "WITHOUT SALES CHARGE" RETURNS DO NOT INCLUDE THE EFFECT OF SALES CHARGES. IF THEY HAD, RETURNS WOULD BE LOWER. 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. All results shown assume reinvestment of distributions. Class Z shares are sold at net asset value with no Rule 12b-1 fees. Class Z shares have limited eligibility and the investment minimum requirement may vary. Please see the fund's prospectus for details. Performance for different share classes will vary based on differences in sales charges and fees associated with each class. Effective October 13, 2003, class D shares are closed to all new investors and new accounts. Existing class D shareholders will be able to make additional purchases at any time. In addition, the class D sales charge of 1.00% is waived after October 13, 2003. 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. The returns for Class C include the returns of Class B prior to 10/13/03, the date on which class C was initially offered by the fund. The returns shown for Class C also include the performance of Class Z prior to the inception of Class B (11/01/02). 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, C and D would have been lower. 34 UNDERSTANDING YOUR EXPENSES ____________________________________________________ COLUMBIA FIXED INCOME SECURITIES FUND ESTIMATING YOUR ACTUAL EXPENSES To estimate the expenses that you paid over the period, first you will need your account balance at the end of the period: o FOR SHAREHOLDERS WHO RECEIVE THEIR ACCOUNT STATEMENTS FROM COLUMBIA MANAGEMENT SERVICES, INC., YOUR ACCOUNT BALANCE IS AVAILABLE ONLINE AT WWW.COLUMBIAFUNDS.COM OR BY CALLING SHAREHOLDER SERVICES AT 800.345.6611 o FOR SHAREHOLDERS WHO RECEIVE THEIR ACCOUNT STATEMENTS FROM THEIR BROKERAGE FIRM, CONTACT YOUR BROKERAGE FIRM TO OBTAIN YOUR ACCOUNT BALANCE 1. DIVIDE YOUR ENDING ACCOUNT BALANCE BY $1,000. FOR EXAMPLE, IF AN ACCOUNT BALANCE WAS $8,600 AT THE END OF THE PERIOD, THE RESULT WOULD BE 8.6 2. IN THE SECTION OF THE TABLE BELOW TITLED "EXPENSES PAID DURING THE PERIOD," LOCATE THE AMOUNT FOR YOUR SHARE CLASS. YOU WILL FIND THIS NUMBER IS IN THE COLUMN LABELED "ACTUAL." MULTIPLY THIS NUMBER BY THE RESULT FROM STEP 1. YOUR ANSWER IS AN ESTIMATE OF THE EXPENSES YOU PAID ON YOUR ACCOUNT DURING THE PERIOD As a fund shareholder, you incur two types of costs. There are transaction costs, which generally include sales charges on purchases and may include redemption or exchange fees. There are also ongoing costs, which generally include investment advisory fees, Rule 12b-1 fees and other fund expenses. The information on this page is intended to help you understand your ongoing costs of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. ANALYZING YOUR FUND'S EXPENSES BY SHARE CLASS To illustrate these ongoing costs, we have provided an example and calculated the expenses paid by investors in each share class during the reporting period. The information in the following table is based on an initial investment of $1,000, which is invested at the beginning of the reporting period and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the "actual" column is calculated using the fund's actual operating expenses and total return for the period. The amount listed in the "hypothetical" column for each share class assumes that the return each year is 5% before expenses and includes the fund's actual expense ratio. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during this reporting period. 03/01/05 - 08/31/05
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID FUND'S ANNUALIZED BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($) EXPENSE RATIO (%) - ------------------------------------------------------------------------------------------------------------------------------- ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL - ------------------------------------------------------------------------------------------------------------------------------- Class A 1,000.00 1,000.00 1,021.88 1,019.81 5.45 5.45 1.07 - ------------------------------------------------------------------------------------------------------------------------------- Class B 1,000.00 1,000.00 1,018.00 1,016.03 9.26 9.25 1.82 - ------------------------------------------------------------------------------------------------------------------------------- Class C 1,000.00 1,000.00 1,018.80 1,016.79 8.50 8.49 1.67 - ------------------------------------------------------------------------------------------------------------------------------- Class D 1,000.00 1,000.00 1,018.80 1,016.79 8.50 8.49 1.67 - ------------------------------------------------------------------------------------------------------------------------------- Class Z 1,000.00 1,000.00 1,022.79 1,021.07 4.18 4.18 0.82
Expenses paid during the period are equal to the fund's annualized expense ratio, multiplied by the average account value over the period, then multiplied by the number of days in the fund's most recent fiscal half-year and divided by 365. Had the Fund's Distributor not waived a portion of expenses for class C and class D, total return would have been reduced. It is important to note that the expense amounts shown in the table are meant to highlight only ongoing costs of investing in the fund and do not reflect any transactional costs, such as sales charges, redemption or exchange fees. Therefore, the hypothetical examples provided may not help you determine the relative total costs of owning different funds. If these transactional costs were included, your costs would have been higher. COMPARE WITH OTHER FUNDS Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the fund with other funds. To do so, compare the 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the continuing cost of investing in a fund and do not reflect any transactional costs, such as sales charges or redemption or exchange fees. 35 PORTFOLIO MANAGERS' REPORT _____________________________________________________ COLUMBIA FIXED INCOME SECURITIES FUND (Sidebar) PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT PERFORMANCE MAY BE LOWER OR HIGHER. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. PLEASE VISIT WWW.COLUMBIAFUNDS.COM FOR DAILY AND MOST RECENT MONTH-END PERFORMANCE UPDATES. SUMMARY o FOR THE 12-MONTH PERIOD ENDED AUGUST 31, 2005, THE FUND'S CLASS A SHARES RETURNED 3.63% WITHOUT SALES CHARGE. o IN AN ENVIRONMENT OF RISING SHORT-TERM INTEREST RATES, THE FUND, ITS BENCHMARK AND ITS PEER GROUP DELIVERED MODEST BUT SOLID RETURNS. o THE FUND'S CORPORATE AND MORTGAGE-BACKED HOLDINGS AIDED PERFORMANCE. LESS EXPOSURE TO AGENCY SECURITIES AND DURATION THAT WAS SHORTER THAN ITS BENCHMARK DETRACTED SOMEWHAT FROM PERFORMANCE. [UP ARROW] [UP ARROW] LEHMAN BROTHERS AGGREGATE CLASS A SHARES BOND INDEX 3.63% 4.15% 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 $250 MILLION PAR AMOUNT OUTSTANDING AND WITH AT LEAST ONE YEAR TO FINAL MATURITY. OBJECTIVE Seeks a high level of income by investing in a broad range of debt securities with intermediate to long-term maturities. TOTAL NET ASSETS $249.6 million NET ASSET VALUE PER SHARE AS OF 08/31/05 ($) Class A 13.30 - ----------------------------------------- Class B 13.30 - ----------------------------------------- Class C 13.30 - ----------------------------------------- Class D 13.30 - ----------------------------------------- Class Z 13.30 For the 12-month period ended August 31, 2005, Columbia Fixed Income Securities Fund class A shares returned 3.63% without sales charge. By comparison, the Lehman Brothers Aggregate Bond Index and the Lipper Corporate Debt Funds A Rated Category average returned 4.15% and 4.14%, respectively, over the same period. 1 Two factors accounted for the slight gap between the fund's performance and its benchmark and peers: We believe it had less exposure to agency securities, which were strong performers. And, its overall duration was shorter. Duration is a measure of interest rate sensitivity; and in a period that favored longer-term securities, this positioning detracted from performance. 2 AN UNUSUAL ENVIRONMENT FOR BONDS Fixed-income investors faced an unusual combination of circumstances during the past 12 months. Seldom, if ever, has the Federal Reserve Board (the Fed) sustained effort to raise short-term interest rates higher been accompanied by such a persistent decline in long-term rates. The Fed raised the federal funds rate a total of eight times during the period, reflecting a backdrop of steady yet unspectacular growth in the national economy. However, long-term rates were insulated from the Fed's efforts. While yields on 2-year Treasury obligations rose by 1.42 percentage points over the past year, yields on 10-year and 30-year bonds fell by 10 and 67 basis points, respectively. (A basis point is one hundredth of one percent.) Because we expected long-term rates to rise along with short-term rates, in keeping with historical precedent, we kept the portfolio's duration relatively short during the period. This strategy hampered returns during the period as long-term bonds exhibited unexpected strength. CORPORATE BONDS AND MORTGAGES PROVE THEIR WORTH The fund was helped during the period by our willingness to move outside the Treasury market into corporate bonds, mortgage-backed securities and asset-backed securities. Each of these sectors outperformed Treasury securities of comparable maturities, aided by the combination of rising corporate profits and stable-to-lower long-term rates. Our security selection within these sectors also added to the fund's returns. Within the corporate bond market, we overweighted strong-performing industries such as energy, capital goods and consumer non-cyclicals. Within the mortgage arena, the fund's exposure to 15-year mortgage collateral was especially helpful to overall performance. These securities did better than longer-term mortgage obligations. LOOKING AHEAD As the trends of the past year unfolded, we took steps to position the portfolio to take advantage of the prevailing economic environment. Two 1 Lipper Inc., a widely respected data provider in the industry, calculates an average total return (assuming reinvestment of distributions) for mutual funds with investment objectives similar to those of the fund. Lipper makes no adjustment for the effect of sales loads. 2 The federal funds rate was increased again on August 9, 2005. 36 ________________________________________________________________________________ COLUMBIA FIXED INCOME SECURITIES FUND (Sidebar) DISTRIBUTIONS DECLARED PER SHARE 09/01/04 - 08/31/05 ($) Class A 0.67 - ----------------------------------------- Class B 0.57 - ----------------------------------------- Class C 0.59 - ----------------------------------------- Class D 0.59 - ----------------------------------------- Class Z 0.69 Distributions include $0.14 per share of taxable realized gains. PORTFOLIO QUALITY AS OF 08/31/05 (%) Treasury/Agency 50.4 - ----------------------------------------- Aaa 14.3 - ----------------------------------------- Aa 5.5 - ----------------------------------------- A 13.9 - ----------------------------------------- Baa 10.2 - ----------------------------------------- Ba 3.8 - ----------------------------------------- B 1.8 - ----------------------------------------- Caa 0.1 Portfolio quality is calculated as a percentage of total investments. Ratings shown in the quality breakdown represent the rating assigned to a particular bond by one of the following nationally recognized rating agencies: Standard and Poor's, a division of The McGraw-Hill Companies, Inc., Moody's Investors Service, Inc. or Fitch Ratings Ltd. PORTFOLIO COMPOSITION AS OF 08/31/05 (%) Mortgage-backed securities 39.4 - ----------------------------------------- Corporate fixed-income bonds & notes 33.9 - ----------------------------------------- Government agencies & obligations 11.6 - ----------------------------------------- Collateralized mortgage obligations 5.7 - ----------------------------------------- Asset-backed securities 3.3 - ----------------------------------------- Commercial mortgage-backed securities 1.3 - ----------------------------------------- Cash & cash equivalents, net receivables & payables 4.8 MATURITY BREAKDOWN AS OF 08/31/05 (%) 0-1 years 13.4 - ----------------------------------------- 1-5 years 57.6 - ----------------------------------------- 5-10 years 18.3 - ----------------------------------------- 10-20 years 3.0 - ----------------------------------------- 20+ years 7.7 Your fund is actively managed and the composition of its portfolio will change over time. Portfolio composition and maturity breakdown discussed are calculated as a percentage of net assets. particular aspects of this positioning are worth highlighting, because we believe they remain relevant for the year ahead. First, we reduced our commitment to corporate bonds, noting that their yield advantage over Treasuries has declined to historically low levels and that the steady rise in short-term rates may begin to crimp corporate profits. In addition, we maintained a position in TIPS (Treasury Inflation Protected Securities) in case the economy experiences higher- than-expected inflation in the year ahead. The ability of the economy to weather higher energy prices has been impressive, but recent trends suggest potential benefits for securities that peg their rates to inflation. Leonard A. Aplet has co-managed Columbia Fixed Income Securities Fund since January1988 and has been with the advisor or its predecessors or affiliate organizations since 1987. /s/ Leonard A. Aplet Richard R. Cutts has co-managed the fund since December 2002 and has been with the advisor or its predecessors or affiliate organizations since 1994. /s/ Richard R. Cutts On October 7, 2005, the Columbia Fixed Income Securities Fund merged into Columbia Total Return Bond Fund. Investing in fixed-income securities may involve certain risks, including the credit quality of individual issuers, possible prepayments, market or economic developments and yields and share price fluctuations due to changes in interest rates. When interest rates go up, bond prices typically drop, and vice versa. 37 PERFORMANCE INFORMATION ________________________________________________________ COLUMBIA OREGON INTERMEDIATE MUNICIPAL BOND FUND PERFORMANCE OF A $10,000 INVESTMENT 09/01/95 - 08/31/05 ($) SALES CHARGE WITHOUT WITH - ----------------------------------------- Class A 16,855 16,051 - ----------------------------------------- Class B 16,499 16,499 - ----------------------------------------- Class C 16,612 16,612 - ----------------------------------------- Class D 16,671 16,508 - ----------------------------------------- Class Z 17,008 n/a PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT PERFORMANCE MAY BE LOWER OR HIGHER. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. PLEASE VISIT WWW.COLUMBIAFUNDS.COM FOR DAILY AND MOST RECENT MONTH-END PERFORMANCE UPDATES. GROWTH OF A $10,000 INVESTMENT 09/01/95 - 08/31/05 [MOUNTAIN CHART] CLASS A SHARES CLASS A SHARES LEHMAN BROTHERS WITHOUT SALES WITH SALES GENERAL OBLIGATION CHARGE CHARGE BOND INDEX -------------- -------------- ------------------ 09/95 10000.00 9525.00 10000.00 10067.00 9589.00 10064.00 10185.00 9701.00 10179.00 10326.00 9836.00 10322.00 10386.00 9893.00 10404.00 10446.00 9950.00 10505.00 10394.00 9901.00 10456.00 10285.00 9797.00 10340.00 10243.00 9756.00 10304.00 10236.00 9750.00 10288.00 10338.00 9847.00 10392.00 10425.00 9930.00 10490.00 10426.00 9931.00 10489.00 10547.00 10046.00 10618.00 10652.00 10146.00 10742.00 10819.00 10305.00 10942.00 10775.00 10264.00 10899.00 10803.00 10290.00 10928.00 10890.00 10373.00 11027.00 10774.00 10263.00 10885.00 10845.00 10330.00 10970.00 10972.00 10451.00 11133.00 11071.00 10545.00 11254.00 11353.00 10814.00 11545.00 11281.00 10745.00 11442.00 11399.00 10858.00 11573.00 11455.00 10911.00 11637.00 11509.00 10962.00 11691.00 11676.00 11121.00 11857.00 11788.00 11228.00 11979.00 11774.00 11214.00 11989.00 11764.00 11205.00 12000.00 11724.00 11167.00 11936.00 11894.00 11329.00 12132.00 11920.00 11354.00 12176.00 11948.00 11380.00 12205.00 12128.00 11552.00 12398.00 12279.00 11695.00 12564.00 12258.00 11676.00 12566.00 12295.00 11711.00 12608.00 12327.00 11741.00 12649.00 12482.00 11889.00 12815.00 12386.00 11797.00 12750.00 12393.00 11805.00 12755.00 12429.00 11839.00 12791.00 12316.00 11731.00 12719.00 12141.00 11564.00 12533.00 12188.00 11610.00 12583.00 12084.00 11510.00 12509.00 12090.00 11515.00 12520.00 11965.00 11397.00 12411.00 12085.00 11511.00 12538.00 11999.00 11429.00 12459.00 11925.00 11358.00 12413.00 12025.00 11454.00 12537.00 12275.00 11692.00 12790.00 12209.00 11629.00 12725.00 12133.00 11557.00 12658.00 12427.00 11836.00 12983.00 12596.00 11997.00 13154.00 12787.00 12180.00 13342.00 12719.00 12115.00 13274.00 12858.00 12247.00 13414.00 12941.00 12327.00 13508.00 13231.00 12603.00 13826.00 13382.00 12747.00 13977.00 13420.00 12782.00 14019.00 13528.00 12886.00 14142.00 13382.00 12747.00 13995.00 13525.00 12883.00 14137.00 13611.00 12964.00 14224.00 13798.00 13143.00 14426.00 14021.00 13355.00 14659.00 13983.00 13319.00 14626.00 14160.00 13488.00 14776.00 13998.00 13333.00 14646.00 13832.00 13175.00 14528.00 14058.00 13390.00 14767.00 14222.00 13547.00 14947.00 13966.00 13303.00 14661.00 14240.00 13564.00 14963.00 14330.00 13649.00 15046.00 14499.00 13810.00 15214.00 14693.00 13995.00 15403.00 14866.00 14160.00 15578.00 15192.00 14470.00 15893.00 14914.00 14206.00 15636.00 14801.00 14098.00 15559.00 15092.00 14375.00 15864.00 15033.00 14319.00 15837.00 15266.00 14541.00 16056.00 15254.00 14530.00 16086.00 15361.00 14631.00 16191.00 15725.00 14978.00 16548.00 15639.00 14896.00 16469.00 15080.00 14364.00 15922.00 15178.00 14457.00 16070.00 15635.00 14892.00 16531.00 15521.00 14784.00 16421.00 15684.00 14939.00 16555.00 15813.00 15061.00 16673.00 15873.00 15119.00 16756.00 16163.00 15395.00 17019.00 16045.00 15283.00 16973.00 15646.00 14902.00 16591.00 15643.00 14899.00 16568.00 15704.00 14958.00 16633.00 15883.00 15128.00 16834.00 16192.00 15423.00 17157.00 16254.00 15482.00 17240.00 16368.00 15590.00 17376.00 16220.00 15450.00 17225.00 16408.00 15629.00 17412.00 16523.00 15738.00 17543.00 16442.00 15661.00 17475.00 16307.00 15533.00 17354.00 16572.00 15784.00 17623.00 16661.00 15870.00 17743.00 16783.00 15986.00 17839.00 16672.00 15880.00 17737.00 08/05 a16855.00 16051.00 17907.00 The chart above shows the growth in value of a hypothetical $10,000 investment in Class A shares of Columbia Oregon Intermediate Municipal Bond Fund during the stated time period, and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. 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 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. AVERAGE ANNUAL TOTAL RETURN AS OF 08/31/05 (%)
SHARE CLASS A B C D Z - ------------------------------------------------------------------------------------------------------------------------ INCEPTION 11/01/02 11/01/02 10/13/03 11/01/02 07/02/84 - ------------------------------------------------------------------------------------------------------------------------ SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT - ------------------------------------------------------------------------------------------------------------------------ 1- year 4.05 -0.90 3.26 -1.74 3.64 2.64 3.62 2.62 4.31 - ------------------------------------------------------------------------------------------------------------------------ 5-year 5.67 4.66 5.22 4.90 5.37 5.37 5.44 5.23 5.87 - ------------------------------------------------------------------------------------------------------------------------ 10-year 5.36 4.85 5.13 5.13 5.21 5.21 5.24 5.14 5.45
AVERAGE ANNUAL TOTAL RETURN AS OF 06/30/05 (%)
SHARE CLASS A B C D Z - ----------------------------------------------------------------------------------------------------------------------- SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT - ----------------------------------------------------------------------------------------------------------------------- 1- year 6.88 1.81 6.07 1.07 6.48 5.48 6.45 6.45 7.15 - ----------------------------------------------------------------------------------------------------------------------- 5-year 6.20 5.18 5.78 5.45 5.91 5.91 5.98 5.77 6.38 - ----------------------------------------------------------------------------------------------------------------------- 10-year 5.54 5.03 5.33 5.33 5.40 5.40 5.43 5.43 5.63
THE "WITH SALES CHARGE" RETURNS INCLUDE THE MAXIMUM INITIAL SALES CHARGE OF 4.75% FOR CLASS A SHARES, MAXIMUM CONTINGENT DEFERRED SALES CHARGE OF 5.00% FOR CLASS B SHARES AND 1.00% FOR CLASS C AND D SHARES FOR THE FIRST YEAR ONLY. THE "WITHOUT SALES CHARGE" RETURNS DO NOT INCLUDE THE EFFECT OF SALES CHARGES. IF THEY HAD, RETURNS WOULD BE LOWER. 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. All results shown assume reinvestment of distributions. Class Z shares are sold at net asset value with no Rule 12b-1 fees. Class Z shares have limited eligibility and the investment minimum requirement may vary. Please see the fund's prospectus for details. Performance for different share classes will vary based on differences in sales charges and fees associated with each class. Effective August 22, 2005, new purchases of class A shares have a maximum initial sales charge of 3.25%. Effective October 13, 2003, class D shares are closed to all new investors and new accounts. Existing class D shareholders will be able to make additional purchases at any time. In addition, class D sales charge of 1.00% is waived after October 13, 2003. 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. The returns for class C include the returns of class B prior to 10/13/03, the date on which class C was initially offered by the fund. The returns shown for class C also include the performance of class Z prior to the inception of class B (11/01/02). 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, C, and D would have been lower. 38 UNDERSTANDING YOUR EXPENSES ____________________________________________________ COLUMBIA OREGON INTERMEDIATE MUNICIPAL BOND FUND ESTIMATING YOUR ACTUAL EXPENSES To estimate the expenses that you paid over the period, first you will need your account balance at the end of the period: o FOR SHAREHOLDERS WHO RECEIVE THEIR ACCOUNT STATEMENTS FROM COLUMBIA MANAGEMENT SERVICES, INC., YOUR ACCOUNT BALANCE IS AVAILABLE ONLINE AT WWW.COLUMBIAFUNDS.COM OR BY CALLING SHAREHOLDER SERVICES AT 800.345.6611 o FOR SHAREHOLDERS WHO RECEIVE THEIR ACCOUNT STATEMENTS FROM THEIR BROKERAGE FIRM, CONTACT YOUR BROKERAGE FIRM TO OBTAIN YOUR ACCOUNT BALANCE 1. DIVIDE YOUR ENDING ACCOUNT BALANCE BY $1,000. FOR EXAMPLE, IF AN ACCOUNT BALANCE WAS $8,600 AT THE END OF THE PERIOD, THE RESULT WOULD BE 8.6 2. IN THE SECTION OF THE TABLE BELOW TITLED "EXPENSES PAID DURING THE PERIOD," LOCATE THE AMOUNT FOR YOUR SHARE CLASS. YOU WILL FIND THIS NUMBER IS IN THE COLUMN LABELED "ACTUAL." MULTIPLY THIS NUMBER BY THE RESULT FROM STEP 1. YOUR ANSWER IS AN ESTIMATE OF THE EXPENSES YOU PAID ON YOUR ACCOUNT DURING THE PERIOD As a fund shareholder, you incur two types of costs. There are transaction costs, which generally include sales charges on purchases and may include redemption or exchange fees. There are also ongoing costs, which generally include investment advisory fees, Rule 12b-1 fees and other fund expenses. The information on this page is intended to help you understand your ongoing costs of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. ANALYZING YOUR FUND'S EXPENSES BY SHARE CLASS To illustrate these ongoing costs, we have provided an example and calculated the expenses paid by investors in each share class during the reporting period. The information in the following table is based on an initial investment of $1,000, which is invested at the beginning of the reporting period and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the "actual" column is calculated using the fund's actual operating expenses and total return for the period. The amount listed in the "hypothetical" column for each share class assumes that the return each year is 5% before expenses and includes the fund's actual expense ratio. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during this reporting period. 03/01/05 - 08/31/05
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID FUND'S ANNUALIZED BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($) EXPENSE RATIO (%) - -------------------------------------------------------------------------------------------------------------------------- ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL - -------------------------------------------------------------------------------------------------------------------------- Class A 1,000.00 1,000.00 1,024.50 1,020.82 4.44 4.43 0.87 - -------------------------------------------------------------------------------------------------------------------------- Class B 1,000.00 1,000.00 1,020.72 1,017.04 8.25 8.24 1.62 - -------------------------------------------------------------------------------------------------------------------------- Class C 1,000.00 1,000.00 1,022.38 1,018.80 6.47 6.46 1.27 - -------------------------------------------------------------------------------------------------------------------------- Class D 1,000.00 1,000.00 1,022.38 1,018.80 6.47 6.46 1.27 - -------------------------------------------------------------------------------------------------------------------------- Class Z 1,000.00 1,000.00 1,025.81 1,022.08 3.17 3.16 0.62
Expenses paid during the period are equal to the fund's annualized expense ratio, multiplied by the average account value over the period, then multiplied by the number of days in the fund's most recent fiscal half-year and divided by 365. Had the Fund's Distributor not waived a portion of expenses for class C and class D, total return would have been reduced. It is important to note that the expense amounts shown in the table are meant to highlight only ongoing costs of investing in the fund and do not reflect any transactional costs, such as sales charges, redemption or exchange fees. Therefore, the hypothetical examples provided may not help you determine the relative total costs of owning different funds. If these transactional costs were included, your costs would have been higher. COMPARE WITH OTHER FUNDS Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the fund with other funds. To do so, compare the 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the continuing cost of investing in a fund and do not reflect any transactional costs, such as sales charges or redemption or exchange fees. 39 PORTFOLIO MANAGER'S REPORT _____________________________________________________ COLUMBIA OREGON INTERMEDIATE MUNICIPAL BOND FUND (Sidebar) PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT PERFORMANCE MAY BE LOWER OR HIGHER. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. PLEASE VISIT WWW.COLUMBIAFUNDS.COM FOR DAILY AND MOST RECENT MONTH-END PERFORMANCE UPDATES. SUMMARY o FOR THE 12-MONTH PERIOD ENDED AUGUST 31, 2005, THE FUND'S CLASS A SHARES RETURNED 4.05% WITHOUT SALES CHARGE. o THE FUND RETURNED SLIGHTLY LESS THAN ITS BENCHMARK, THE LEHMAN BROTHERS GENERAL OBLIGATION BOND INDEX. HOWEVER IT CAME OUT SOLIDLY AHEAD OF THE AVERAGE FOR ITS PEER GROUP, THE LIPPER OTHER STATES INTERMEDIATE MUNICIPAL DEBT FUNDS CATEGORY. o THE FUND'S FOCUS ON BONDS WITH RELATIVELY LONG MATURITIES AT A TIME WHEN SHORTER-TERM ISSUES WERE UNDER PRESSURE, AIDED PERFORMANCE. HOWEVER, THE INDEX HAD EVEN MORE EXPOSURE TO LONGER-TERM ISSUES, WHICH EXPLAINS THE MODEST GAP IN PERFORMANCE BETWEEN THE FUND AND ITS BENCHMARK. [UP ARROW] [UP ARROW] LEHMAN BROTHERS GENERAL OBLIGATION CLASS A SHARES BOND INDEX 4.05% 4.41% THE LEHMAN BROTHERS GENERAL OBLIGATION BOND INDEX IS AN UNMANAGED INDEX THAT REPRESENTS AVERAGE MARKET-WEIGHTED PERFORMANCE OF GENERAL OBLIGATION SECURITIES THAT HAVE BEEN ISSUED IN THE LAST FIVE YEARS WITH MATURITIES GREATER THAN ONE YEAR. OBJECTIVE Seeks a high level of income exempt from federal and Oregon income tax by investing primarily in municipal securities issued by the state of Oregon. TOTAL NET ASSETS $417.6 million For the 12-month period ended August 31, 2005, Columbia Oregon Intermediate Municipal Bond Fund class A shares returned 4.05% without sales charge. This was less than the fund's benchmark, the Lehman Brothers General Obligation Bond Index, which returned 4.41%. The fund outperformed its peer group, the Lipper Other States Intermediate Municipal Debt Funds Category, which returned an average of 2.48%. 1 In January we changed the fund's peer group from the Lipper Oregon Funds Category because we felt the new peer group was a better match with the fund's strategy. Funds in the former peer group tend to own bonds with longer maturities, Columbia Oregon Intermediate Municipal Bond Fund targets an intermediate maturity range. The fund's focus on bonds with relatively long maturities at a time when shorter-term issues were under pressure aided performance. However, the fund had less exposure than the index to better-performing long-term issues, which accounted for its slight underperformance. LONGER-TERM INTERMEDIATES AIDED RESULTS WHILE HOUSING ISSUES HURT Our decision to emphasize intermediate-term bonds with longer maturities was rewarded as declining rates brought higher prices in the longer end of the intermediate-term market. These rate declines occurred despite a string of Federal Reserve Board (the Fed) hikes, which drove down prices of shorter-term issues. The fund also benefited from owning zero-coupon issues, which pay no income but are issued at a discount to face value. Zeroes were the market's strongest sector over this period. The fund's call-protected bonds also did well. Investors favored bonds with good safeguards against untimely recalls by issuers seeking to refinance at lower rates. Hospital bonds were strong performers during the period, and the fund's lower- and non-rated bonds also did well as economic conditions improved. We are pleased to report that the bonds of the Oregon Coast Aquarium, which had been in default, rose sharply once the Aquarium's debt was restructured, an initiative in which we collaborated. As a result, the fund also received the majority of back interest due. However, we sold the bonds below their purchase price and their sale generated a net loss for the fund. The fund continued to experience disappointing results from the housing sector, where some bonds were called away at prices below market levels. In addition, holdings in the one-to-five year maturity range felt the pressure of rising short-term rates. 1 Lipper Inc., a widely respected data provider in the industry, calculates an average total return (assuming reinvestment of distributions) for mutual funds with investment objectives similar to those of the fund. Lipper makes no adjustment for the effect of sales loads. 40 ________________________________________________________________________________ COLUMBIA OREGON INTERMEDIATE MUNICIPAL BOND FUND (Sidebar) NET ASSET VALUE PER SHARE AS OF 08/31/05 ($) Class A 12.45 - ----------------------------------------- Class B 12.45 - ----------------------------------------- Class C 12.45 - ----------------------------------------- Class D 12.45 - ----------------------------------------- Class Z 12.45 DISTRIBUTIONS DECLARED PER SHARE 09/01/04 - 08/31/05 ($) Class A 0.49 - ----------------------------------------- Class B 0.40 - ----------------------------------------- Class C 0.44 - ----------------------------------------- Class D 0.44 - ----------------------------------------- Class Z 0.52 Distributions include $0.04 per share of taxable realized gains. PORTFOLIO QUALITY AS OF 08/31/05 (%) AAA 48.9 - ----------------------------------------- AA 32.8 - ----------------------------------------- A 4.9 - ----------------------------------------- BBB 4.6 - ----------------------------------------- Non rated 7.9 - ----------------------------------------- Net cash & equivalents 0.9 Ratings shown in the quality breakdown represent the rating assigned to a particular bond by one of the following nationally recognized rating agencies: Standard and Poor's, a division of The McGraw-Hill Companies, Inc., Moody's Investors Service, Inc. or Fitch Ratings Ltd. TOP 5 SECTORS AS OF 08/31/05 (%) Refunded/escrowed 24.9 - ----------------------------------------- Local general obligations 22.0 - ----------------------------------------- Hospitals 11.1 - ----------------------------------------- Special property tax 6.9 - ----------------------------------------- Education 5.9 Your fund is actively managed and the sector breakdown of its portfolio will change over time. Sector breakdown and holdings discussed are calculated as a percentage of net assets. MATURITY BREAKDOWN AS OF 08/31/05 (%) 0-1 years 0.5 - ----------------------------------------- 1-3 years 2.6 - ----------------------------------------- 3-5 years 10.4 - ----------------------------------------- 5-7 years 21.9 - ----------------------------------------- 7-10 years 23.4 - ----------------------------------------- 10-15 years 22.8 - ----------------------------------------- 15-20 years 13.7 - ----------------------------------------- 20-25 years 1.4 - ----------------------------------------- 25+ years 2.4 - ----------------------------------------- Net cash & equivalents 0.9 Portfolio quality and maturity breakdown are calculated as a percentage of total investments. OREGON'S SLOW RECOVERY CONTINUED The pace of Oregon's economic recovery remained slower than rebounds in other states. Unemployment stood at 6.5% in June, a marked improvement from 2003's peak of 8.3%, but still above the national average. The state's above-average debt level appears manageable, given improving economic prospects and projected increases in personal income taxes and other revenue streams. However, Oregon's reserves will have to be bolstered before it is likely to merit a boost in its AA- bond rating. FAVORABLE OUTLOOK HINGES ON ECONOMIC GROWTH As long as economic growth continues, we believe that increased tax revenues should strengthen balance sheets for state and local governments. And with signs that the economic expansion could be slowing, the Fed may soon reevaluate its long campaign of short-term rate increases. With those expectations in mind, we plan to continue to emphasize longer-maturity, higher-yielding issues because we believe that they offer greater return potential. We also plan to continue to focus on bonds with good call protection as we seek to maintain an attractive yield for our shareholders. We have cut exposure to bonds subject to the Alternative Minimum Tax (AMT) to less than 1% of the portfolio. Our goal is to deliver more net after-tax yield as the AMT affects growing numbers of taxpayers. Any changes in the tax law could lead us to rethink this strategy. Brian McGreevy has managed the Columbia Oregon Intermediate Municipal Bond Fund since December 2003 and has been with the advisor and its predecessors or affiliate organizations since 1994. /s/ Brian McGreevy Tax-exempt investing offers current tax-exempt income, but it also involves special risks. The value of the fund will be affected by interest rate changes and the creditworthiness of issues held in the fund. When interest rates go up, bond prices generally drop and vice versa. Interest income from certain tax-exempt bonds may be subject to certain state and local taxes and, if applicable, the alternative minimum tax. Capital gains are not exempt from income taxes. Single-state municipal bond funds pose additional risks due to limited geographical diversification. 41 PERFORMANCE INFORMATION ________________________________________________________ COLUMBIA CONSERVATIVE HIGH YIELD FUND PERFORMANCE OF A $10,000 INVESTMENT 09/01/95 - 08/31/05 ($) SALES CHARGE WITHOUT WITH - ----------------------------------------- Class A 19,426 18,501 - ----------------------------------------- Class B 18,995 18,995 - ----------------------------------------- Class C 19,037 19,037 - ----------------------------------------- Class D 19,084 18,887 - ----------------------------------------- Class Z 19,572 n/a PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT PERFORMANCE MAY BE LOWER OR HIGHER. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. PLEASE VISIT WWW.COLUMBIAFUNDS.COM FOR DAILY AND MOST RECENT MONTH-END PERFORMANCE UPDATES. GROWTH OF A $10,000 INVESTMENT 09/01/95 - 08/31/05 [MOUNTAIN CHART] CLASS A CLASS A MERRILL LYNCH US SHARES WITHOUT SHARES WITH HIGH YIELD, CASH SALES CHARGE SALES CHARGE PAY ONLY INDEX -------------- ------------ ---------------- 09/95 10000 9525 10000 10162 9679 10114 10296 9807 10186 10414 9919 10286 10581 10079 10451 10728 10219 10616 10764 10252 10632 10642 10137 10604 10627 10122 10609 10637 10131 10685 10666 10160 10749 10745 10235 10822 10950 10429 10934 11139 10610 11169 11262 10727 11292 11498 10952 11520 11580 11030 11609 11682 11127 11698 11859 11296 11862 11680 11125 11730 11818 11257 11864 12101 11527 12104 12254 11672 12288 12584 11986 12582 12572 11975 12561 12741 12136 12770 12729 12125 12854 12874 12263 12976 13049 12430 13099 13262 12632 13294 13340 12707 13349 13423 12786 13464 13490 12849 13527 13532 12889 13622 13628 12981 13690 13794 13139 13768 13247 12618 13173 13481 12841 13199 13417 12779 12983 13859 13201 13574 13863 13205 13578 14034 13367 13712 13957 13294 13608 14123 13452 13725 14223 13548 13939 14040 13373 13843 13996 13331 13817 13982 13318 13837 13904 13243 13696 13889 13229 13644 13891 13231 13564 14118 13447 13718 14193 13518 13790 14120 13449 13721 14133 13462 13733 14052 13385 13541 14117 13446 13545 14109 13438 13396 14405 13721 13625 14534 13844 13723 14780 14078 13890 14780 14078 13810 14656 13960 13405 14446 13760 12986 14847 14141 13267 15356 14626 14058 15485 14749 14280 15404 14673 14092 15367 14637 13938 15467 14732 14206 15331 14603 13913 15517 14779 14129 15718 14972 14266 15104 14386 13351 15622 14880 13744 16031 15270 14191 15832 15080 14090 15927 15171 14169 15782 15033 14033 15931 15174 14367 16005 15245 14595 15973 15215 14516 15568 14828 13484 15309 14582 12948 15547 14808 13271 15486 14750 13059 15466 14731 12949 15902 15147 13721 16007 15247 13930 16146 15379 14331 16274 15501 14516 16554 15767 14891 16929 16125 15728 16943 16138 15898 17150 16335 16332 16824 16025 16099 16937 16132 16310 17304 16482 16745 17498 16667 17087 17605 16768 17322 17795 16950 17724 17966 17112 18001 18034 17177 17994 18189 17325 18120 18029 17173 17989 17676 16836 17701 17829 16982 17960 18111 17251 18206 18444 17568 18535 18726 17837 18793 18989 18087 19150 18998 18096 19343 19068 18163 19632 19030 18126 19616 19261 18346 19893 18719 17830 19351 18684 17796 19150 19020 18117 19503 19273 18358 19873 19418 18495 20183 08/05 19426 18501 20249 The chart above shows the growth in value of a hypothetical $10,000 investment in Class A shares of Columbia Conservative High Yield Fund during the stated time period, and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The Merrill Lynch US High Yield, Cash Pay Only Index is an unmanaged index that tracks the performance 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.
AVERAGE ANNUAL TOTAL RETURN AS OF 08/31/05 (%) SHARE CLASS A B C D Z - --------------------------------------------------------------------------------------------------------- INCEPTION 11/01/02 11/01/02 10/13/03 11/01/02 10/01/93 - --------------------------------------------------------------------------------------------------------- SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT - --------------------------------------------------------------------------------------------------------- 1-year 5.31 0.35 4.53 -0.43 4.69 3.69 4.69 3.62 5.54 - --------------------------------------------------------------------------------------------------------- 5-year 5.61 4.59 5.14 4.83 5.19 5.19 5.24 5.03 5.77 - --------------------------------------------------------------------------------------------------------- 10-year 6.87 6.35 6.63 6.63 6.65 6.65 6.68 6.57 6.95
AVERAGE ANNUAL TOTAL RETURN AS OF 06/30/05 (%)
SHARE CLASS A B C D Z - -------------------------------------------------------------------------------------------------------- SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT - -------------------------------------------------------------------------------------------------------- 1-year 8.09 3.00 7.29 2.29 7.46 6.46 7.45 6.32 8.34 - -------------------------------------------------------------------------------------------------------- 5-year 5.99 4.97 5.54 5.24 5.59 5.59 5.64 5.43 6.14 - -------------------------------------------------------------------------------------------------------- 10-year 6.95 6.43 6.72 6.72 6.74 6.74 6.77 6.66 7.02
THE "WITH SALES CHARGE" RETURNS INCLUDE THE MAXIMUM INITIAL SALES CHARGE OF 4.75% FOR CLASS A SHARES, MAXIMUM CONTINGENT DEFERRED SALES CHARGE OF 5.00% FOR CLASS B SHARES AND 1.00% FOR CLASS C AND D SHARES FOR THE FIRST YEAR ONLY. THE "WITHOUT SALES CHARGE" RETURNS DO NOT INCLUDE THE EFFECT OF SALES CHARGES. IF THEY HAD, RETURNS WOULD HAVE BEEN LOWER. 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. All results shown assume reinvestment of distributions. Class Z shares are sold at net asset value with no Rule 12b-1 fees. Class Z shares have limited eligibility and the investment minimum requirement may vary. Please see the fund's prospectus for details. Performance for different share classes will vary based on differences in sales charges and fees associated with each class. Effective October 13, 2003, class D shares are closed to all new investors and new accounts. Existing class D shareholders will be able to make additional purchases at any time. In addition, class D sales charge of 1.00% is waived after October 13, 2003. 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. The returns for class C include the returns of class B prior to 10/13/03, the date on which class C was initially offered by the fund. The returns shown for class C also include the performance of class Z prior to the inception of class B (11/01/02). 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, C and D would have been lower. 42 UNDERSTANDING YOUR EXPENSES ____________________________________________________ COLUMBIA CONSERVATIVE HIGH YIELD FUND ESTIMATING YOUR ACTUAL EXPENSES To estimate the expenses that you paid over the period, first you will need your account balance at the end of the period: o FOR SHAREHOLDERS WHO RECEIVE THEIR ACCOUNT STATEMENTS FROM COLUMBIA MANAGEMENT SERVICES, INC., YOUR ACCOUNT BALANCE IS AVAILABLE ONLINE AT WWW.COLUMBIAFUNDS.COM OR BY CALLING SHAREHOLDER SERVICES AT 800.345.6611 o FOR SHAREHOLDERS WHO RECEIVE THEIR ACCOUNT STATEMENTS FROM THEIR BROKERAGE FIRM, CONTACT YOUR BROKERAGE FIRM TO OBTAIN YOUR ACCOUNT BALANCE 1. DIVIDE YOUR ENDING ACCOUNT BALANCE BY $1,000. FOR EXAMPLE, IF AN ACCOUNT BALANCE WAS $8,600 AT THE END OF THE PERIOD, THE RESULT WOULD BE 8.6 2. IN THE SECTION OF THE TABLE BELOW TITLED "EXPENSES PAID DURING THE PERIOD," LOCATE THE AMOUNT FOR YOUR SHARE CLASS. YOU WILL FIND THIS NUMBER IS IN THE COLUMN LABELED "ACTUAL." MULTIPLY THIS NUMBER BY THE RESULT FROM STEP 1. YOUR ANSWER IS AN ESTIMATE OF THE EXPENSES YOU PAID ON YOUR ACCOUNT DURING THE PERIOD As a fund shareholder, you incur two types of costs. There are transaction costs, which generally include sales charges on purchases and may include redemption or exchange fees. There are also ongoing costs, which generally include investment advisory fees, Rule 12b-1 fees and other fund expenses. The information on this page is intended to help you understand your ongoing costs of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. ANALYZING YOUR FUND'S EXPENSES BY SHARE CLASS To illustrate these ongoing costs, we have provided an example and calculated the expenses paid by investors in each share class during the reporting period. The information in the following table is based on an initial investment of $1,000, which is invested at the beginning of the reporting period and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the "actual" column is calculated using the fund's actual operating expenses and total return for the period. The amount listed in the "hypothetical" column for each share class assumes that the return each year is 5% before expenses and includes the fund's actual expense ratio. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during this reporting period.
03/01/05 - 08/31/05 ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID FUND'S ANNUALIZED BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($) EXPENSE RATIO (%) - -------------------------------------------------------------------------------------------------------------------- ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL - -------------------------------------------------------------------------------------------------------------------- Class A 1,000.00 1,000.00 1,008.52 1,020.47 4.76 4.79 0.94 - -------------------------------------------------------------------------------------------------------------------- Class B 1,000.00 1,000.00 1,004.69 1,016.69 8.54 8.59 1.69 - -------------------------------------------------------------------------------------------------------------------- Class C 1,000.00 1,000.00 1,005.49 1,017.44 7.78 7.83 1.54 - -------------------------------------------------------------------------------------------------------------------- Class D 1,000.00 1,000.00 1,005.49 1,017.44 7.78 7.83 1.54 - -------------------------------------------------------------------------------------------------------------------- Class Z 1,000.00 1,000.00 1,009.58 1,021.73 3.50 3.52 0.69
Expenses paid during the period are equal to the fund's annualized expense ratio, multiplied by the average account value over the period, then multiplied by the number of days in the fund's most recent fiscal half-year and divided by 365. Had the Fund's Distributor not waived a portion of expense for class C and class D, total return would have been reduced. It is important to note that the expense amounts shown in the table are meant to highlight only ongoing costs of investing in the fund and do not reflect any transactional costs, such as sales charges, redemption or exchange fees. Therefore, the hypothetical examples provided may not help you determine the relative total costs of owning different funds. If these transactional costs were included, your costs would have been higher. COMPARE WITH OTHER FUNDS Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the fund with other funds. To do so, compare the 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the continuing cost of investing in a fund and do not reflect any transactional costs, such as sales charges or redemption or exchange fees. 43 PORTFOLIO MANAGERS' REPORT _____________________________________________________ COLUMBIA CONSERVATIVE HIGH YIELD FUND (Sidebar) PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT PERFORMANCE MAY BE LOWER OR HIGHER. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. PLEASE VISIT WWW.COLUMBIAFUNDS.COM FOR DAILY AND MOST RECENT MONTH-END PERFORMANCE UPDATES. SUMMARY o FOR THE 12-MONTH PERIOD ENDED AUGUST 31, 2005, THE FUND'S CLASS A SHARES RETURNED 5.31% WITHOUT SALES CHARGE. o SOLID ECONOMIC GROWTH AND LOW INTEREST RATES CREATED AN ENVIRONMENT THAT WAS FAVORABLE FOR HIGH-YIELD INVESTMENTS. o THE FUND'S RELATIVE PERFORMANCE WAS HURT BY ITS EMPHASIS ON HIGHER QUALITY BONDS AT A TIME WHEN THE FIXED-INCOME MARKETS REWARDED RISK-TAKING. [UP ARROW] [UP ARROW] MERRILL LYNCH US HIGH YIELD, CASH CLASS A SHARES PAY ONLY INDEX 5.31% 9.28% THE MERRILL LYNCH US HIGH YIELD, CASH PAY ONLY INDEX IS AN UNMANAGED INDEX THAT TRACKS THE PERFORMANCE OF NON-INVESTMENT-GRADE CORPORATE BONDS. OBJECTIVE Seeks a high level of income, with capital appreciation as a secondary goal, by investing in non-investment-grade, corporate debt securities. TOTAL NET ASSETS $1,561.1 million For the 12-month period ended August 31, 2005, Columbia Conservative High Yield Fund class A shares returned 5.31% without sales charge. The fund underperformed the Merrill Lynch US High Yield, Cash Pay Only Index, which returned 9.28%. Its return was also below the 8.28% average return of its peer group, the Lipper High Current Yield Funds Category. 1 The fund's emphasis on higher quality investments at a time when lower quality issuers were gaining favor among high-yield investors hurt competitive results. The fund's average credit quality was higher than the index and also, we believe, higher than its peer group average, a strategy that we believe is prudent for the longer term. Macroeconomic conditions were favorable for the high-yield marketplace over the past 12 months. The economy's steady growth enabled corporate issuers to improve their balance sheets, a special boon to lower quality issuers. The Merrill Lynch Cash Pay CCC Index advanced 12.99% for the year, mirroring the 12.56% advance in the S&P 500 and outpacing the Intermediate BB Index by six percentage points. Our preference for higher quality investments led us to underweight the electric utility and telecommunications sectors, both of which outperformed the overall market. However, the fund established a small position in electric utilities, including an investment in AES, which was a strong performer during the period. We also increased the fund's exposure to energy-related investments from 11.0% to 14.4%. In terms of individual holdings, the fund benefited from the strong operating performance of its holdings in the leisure sector, notably Royal Caribbean Cruises and Speedway Motorsports. Peabody Energy, the nation's largest coal enterprise, was another strong performer. Although customer deliveries were affected by a series of rail disruptions, Peabody Energy was nonetheless a major beneficiary of record-high coal prices. Poor performers included paper and forest products concerns Boise Cascade and Stone Container. Both companies were hurt by stiff price competition within their primary markets. Cinemark USA was also a weak performer, held back by a spate of disappointing Hollywood releases that dampened theater attendance nationwide. We continue to believe that high-yield investments offer attractive prospects. The absence of meaningful inflationary pressures outside of the energy sector is likely to keep long-term bond yields in check, a plus for fixed-income investments in general. While it is possible that persistently high energy prices could restrain economic growth and bring inflation back into play, we believe that the fund's heavy weight in the energy sector has the potential to help insulate the portfolio from that scenario. Finally, from the standpoint of relative performance, the yield advantage of lower quality issues has narrowed considerably over the past two years, making it less likely that CCC and other low-rated bonds will continue to outperform. In that regard, we plan to continue the fund's emphasis on higher quality bonds. 1 Lipper Inc., a widely respected data provider in the industry, calculates an average total return (assuming reinvestment of distributions) for mutual funds with investment objectives similar to those of the fund. Lipper makes no adjustment for the effect of sales loads. 44 ________________________________________________________________________________ COLUMBIA CONSERVATIVE HIGH YIELD FUND (Sidebar) NET ASSET VALUE PER SHARE AS OF 08/31/05 ($) Class A 8.62 - ----------------------------------------- Class B 8.62 - ----------------------------------------- Class C 8.62 - ----------------------------------------- Class D 8.62 - ----------------------------------------- Class Z 8.62 DISTRIBUTIONS DECLARED PER SHARE 09/01/04 - 08/31/05 ($) Class A 0.52 - ----------------------------------------- Class B 0.46 - ----------------------------------------- Class C 0.47 - ----------------------------------------- Class D 0.47 - ----------------------------------------- Class Z 0.54 PORTFOLIO QUALITY AS OF 08/31/05 (%) Baa 2.9 - ----------------------------------------- Ba 61.5 - ----------------------------------------- B 33.8 - ----------------------------------------- Caa 1.8 Portfolio quality is calculated as a percentage of total investments. Ratings shown in the quality breakdown represent the rating assigned to a particular bond by one of the following nationally recognized rating agencies: Standard and Poor's, a division of The McGraw-Hill Companies, Inc., Moody's Investors Service, Inc. or Fitch Ratings Ltd. TOP 5 SECTORS AS OF 08/31/05 (%) Consumer Cyclical 22.2 - ----------------------------------------- Consumer Non-Cyclical 17.9 - ----------------------------------------- Industrials 16.4 - ----------------------------------------- Energy 14.4 - ----------------------------------------- Communications 12.9 HOLDINGS DISCUSSED IN THIS REPORT AS OF 08/31/05 (%) AES 1.3 - ----------------------------------------- Royal Caribbean Cruises 2.0 - ----------------------------------------- Speedway Motorsports 1.1 - ----------------------------------------- Peabody Energy 2.0 - ----------------------------------------- Boise Cascade 1.1 - ----------------------------------------- Stone Container 1.0 - ----------------------------------------- Cinemark USA 1.1 MATURITY BREAKDOWN AS OF 08/31/05 (%) 0-3 years 21.9 - ----------------------------------------- 3-5 years 25.4 - ----------------------------------------- 5-10 years 52.7 Your fund is actively managed and the sector breakdown of its portfolio will change over time. Sector breakdown, holdings discussed and maturity breakdown are calculated as a percentage of net assets. Jeffrey L. Rippey, CFA, has managed or co-managed Columbia Conservative High Yield Fund since its inception in October 1993 and has been with the advisor or its predecessors or affiliate organizations since 1981. /s/ Jeffrey L. Rippey Kurt M. Havnaer, CFA, has co-managed the fund since February 2000. He has been associated with the advisor or its predecessors or affiliate organizations since 1996. /s/ Kurt M. Havnaer Effective September 20, 2005 Stephen Peacher, Kevin L. Cronk and Thomas A. LaPoint began co-managing Columbia Conservative High Yield Fund, replacing Jeffrey L. Rippey and Kurt M. Havnaer. Stephen Peacher, a managing director of Columbia Management, is the lead manager for the Fund and has been associated with Columbia Management since April, 2005. Kevin L. Cronk and Thomas A. LaPoint have been with the advisor or its predecessors or affiliate organization since 1999. Investing in fixed-income securities may involve certain risks, including the credit quality of individual issuers, possible prepayments, market or economic developments and yields and share price fluctuations due to changes in interest rates. When interest rates go up, bond prices typically drop, and vice versa. Investing in high-yield securities (commonly known as "junk" bonds) offers the potential for high current income and attractive total return but involves certain risks. Changes in economic conditions or other circumstances may adversely affect a junk bond issuer's ability to make principal and interest payments. Rising interest rates tend to lower the value of all bonds. 45 PERFORMANCE INFORMATION ________________________________________________________ COLUMBIA DAILY INCOME COMPANY PERFORMANCE OF A $10,000 INVESTMENT 09/01/95 - 08/31/05 ($) SALES CHARGE WITHOUT - ----------------------------------------- Class Z 14,086 PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT PERFORMANCE MAY BE LOWER OR HIGHER. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE INVESTMENT RETURN WILL FLUCTUATE. PLEASE VISIT WWW.COLUMBIAFUNDS.COM FOR DAILY AND MOST RECENT MONTH-END PERFORMANCE UPDATES. AVERAGE ANNUAL TOTAL RETURN AS OF 08/31/05 (%) CLASS Z LIPPER MONEY MARKET INCEPTION 11/03/74 FUNDS CATEGORY AVERAGE - --------------------------------------------------------------------------- 1-year 1.77 1.68 - --------------------------------------------------------------------------- 5-year 1.88 1.77 - --------------------------------------------------------------------------- 10-year 3.48 3.39 AVERAGE ANNUAL TOTAL RETURN AS OF 06/30/05 (%) LIPPER MONEY MARKET CLASS Z FUNDS CATEGORY AVERAGE - --------------------------------------------------------------------------- 1-year 1.39 1.35 - --------------------------------------------------------------------------- 5-year 2.00 1.88 - --------------------------------------------------------------------------- 10-year 3.53 3.43 ALL RESULTS SHOWN ASSUME REINVESTMENT OF DISTRIBUTIONS. CLASS Z SHARES ARE SOLD AT NET ASSET VALUE WITH NO RULE 12B-1 FEES. CLASS Z SHARES HAVE LIMITED ELIGIBILITY AND THE INVESTMENT MINIMUM REQUIREMENT MAY VARY. PLEASE SEE THE FUND'S PROSPECTUS FOR DETAILS. 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. The table does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. 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. 46 UNDERSTANDING YOUR EXPENSES ____________________________________________________ COLUMBIA DAILY INCOME COMPANY ESTIMATING YOUR ACTUAL EXPENSES To estimate the expenses that you paid over the period, first you will need your account balance at the end of the period: o FOR SHAREHOLDERS WHO RECEIVE THEIR ACCOUNT STATEMENTS FROM COLUMBIA MANAGEMENT SERVICES, INC., YOUR ACCOUNT BALANCE IS AVAILABLE ONLINE AT WWW.COLUMBIAFUNDS.COM OR BY CALLING SHAREHOLDER SERVICES AT 800.345.6611 o FOR SHAREHOLDERS WHO RECEIVE THEIR ACCOUNT STATEMENTS FROM THEIR BROKERAGE FIRM, CONTACT YOUR BROKERAGE FIRM TO OBTAIN YOUR ACCOUNT BALANCE 1. DIVIDE YOUR ENDING ACCOUNT BALANCE BY $1,000. FOR EXAMPLE, IF AN ACCOUNT BALANCE WAS $8,600 AT THE END OF THE PERIOD, THE RESULT WOULD BE 8.6 2. IN THE SECTION OF THE TABLE BELOW TITLED "EXPENSES PAID DURING THE PERIOD," LOCATE THE AMOUNT FOR YOUR SHARE CLASS. YOU WILL FIND THIS NUMBER IS IN THE COLUMN LABELED "ACTUAL" MULTIPLY THIS NUMBER BY THE RESULT FROM STEP 1. YOUR ANSWER IS AN ESTIMATE OF THE EXPENSES YOU PAID ON YOUR ACCOUNT DURING THE PERIOD As a fund shareholder, you incur two types of costs. There are transaction costs, which generally include sales charges on purchases and may include redemption or exchange fees. There are also ongoing costs, which generally include investment advisory fees, Rule 12b-1 fees and other fund expenses. The information on this page is intended to help you understand your ongoing costs of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. ANALYZING YOUR FUND'S EXPENSES BY SHARE CLASS To illustrate these ongoing costs, we have provided an example and calculated the expenses paid by investors in each share class during the reporting period. The information in the following table is based on an initial investment of $1,000, which is invested at the beginning of the reporting period and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the "actual" column is calculated using the fund's actual operating expenses and total return for the period. The amount listed in the "hypothetical" column for each share class assumes that the return each year is 5% before expenses and includes the fund's actual expense ratio. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during this reporting period.
03/01/05 - 08/31/05 ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID FUND'S ANNUALIZED BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($) EXPENSE RATIO (%) - ---------------------------------------------------------------------------------------------------------------------- ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL - ---------------------------------------------------------------------------------------------------------------------- Class Z 1,000.00 1,000.00 1,011.70 1,021.32 3.90 3.92 0.77
Expenses paid during the period are equal to the fund's annualized expense ratio, multiplied by the average account value over the period, then multiplied by the number of days in the fund's most recent fiscal half-year and divided by 365. It is important to note that the expense amounts shown in the table are meant to highlight only ongoing costs of investing in the fund and do not reflect any transactional costs, such as sales charges, redemption or exchange fees. Therefore, the hypothetical examples provided may not help you determine the relative total costs of owning different funds. If these transactional costs were included, your costs would have been higher. COMPARE WITH OTHER FUNDS Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the fund with other funds. To do so, compare the 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the continuing cost of investing in a fund and do not reflect any transactional costs, such as sales charges or redemption or exchange fees. 47 PORTFOLIO MANAGER'S REPORT _____________________________________________________ COLUMBIA DAILY INCOME COMPANY (Sidebar) PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT PERFORMANCE MAY BE LOWER OR HIGHER. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE INVESTMENT RETURN WILL FLUCTUATE. PLEASE VISIT WWW.COLUMBIAFUNDS.COM FOR DAILY AND MOST RECENT MONTH-END PERFORMANCE UPDATES. SUMMARY o FOR THE 12-MONTH PERIOD THAT ENDED AUGUST 31, 2005, THE FUND'S CLASS Z SHARES RETURNED 1.77%. o SHORT-TERM RATES WERE NEAR ALL-TIME LOWS WHEN THE PERIOD BEGAN BUT WERE PUSHED HIGHER BY THE FEDERAL RESERVE BOARD. o WE CONTINUED TO EMPHASIZE FLOATING-RATE SECURITIES AND MAINTAINED A RELATIVELY SHORT AVERAGE MATURITY, WHICH WE BELIEVE HELPED THE FUND OUTPERFORM ITS PEER GROUP. [UP ARROW] [UP ARROW] LIPPER MONEY MARKET FUNDS CLASS Z SHARES CATEGORY 1.77% 1.68% OBJECTIVE Seeks a high level of income consistent with the maintenance of liquidity and the preservation of capital by investing primarily in high quality money market securities TOTAL NET ASSETS $487.8 million NET ASSET VALUE PER SHARE AS OF 08/31/05 ($) Class Z 1.00 - ----------------------------------------- DISTRIBUTIONS DECLARED PER SHARE 09/01/04 - 08/31/05 ($) Class Z 0.02 - ----------------------------------------- For the 12-month period ended August 31, 2005, Columbia Daily Income Company class Z shares returned 1.77%. This return was slightly higher than the Lipper Money Market Funds Category, which averaged 1.68% for the period. 1 The fund benefited from its commitment to floating-rate notes in an environment of rising short-term interest rates. The Federal Reserve Board (the Fed) raised a key short-term interest rate, the federal funds rate, on eight occasions during the past 12 months. The fed funds rate moved from 1.5% to 3.5% during the period. 2 In this environment, money market fund managers faced a choice between locking in maximum current yields by buying longer-dated money market securities and maintaining flexibility by buying shorter-dated money market securities that offered the opportunity for reinvesting at higher levels as rates moved up. We chose the latter by emphasizing floating-rate notes, whose coupons are reset with each upward move in short-term rates. Floating-rate notes accounted for approximately 55% of total assets throughout the period. We believe this strategy helped the fund outperform its peer group. Most of the fund's floating-rate investments are tied to either the one-month or three-month LIBOR (London Interbank Offering Rate). We also diversified into securities tied to the prime rate. The fund's weighted average maturity was 36 days at the end of the period, consistent with our preference to keep the portfolio's maturity relatively short. Most of the portfolio's non-floating-rate positions have consisted of fixed-rate securities with maturities between one and three months, which we then rolled over as rates moved higher. However, there were occasions when longer-term fixed rates rose above the Fed's forward-looking targets, and the fund took advantage of those opportunities to lock in attractive yields. In general, by spreading out the fund's maturity dates within any given month or even within a given week, the fund remained poised to capture whatever incremental yields the short-term marketplace had to offer. The Fed has indicated that it will continue its policy of slow and steady hikes to short-term rates. However, it could also reevaluate this policy at any time depending on the health of the US economy. We will make every effort to monitor both the economy's direction and the likely Fed response as we position the portfolio for the year ahead. 1 Lipper Inc., a widely respected data provider in the industry, calculates an average total return (assuming reinvestment of distributions) for mutual funds with investment objectives similar to those of the fund. Lipper makes no adjustment for the effect of sales loads. 2 The federal funds rate was raised to 3.75% on September 30, 2005. 48 ________________________________________________________________________________ COLUMBIA DAILY INCOME COMPANY PORTFOLIO HIGHLIGHTS AS OF 08/31/05 Seven day current yield 2.89% - ----------------------------------------- Seven day effective yield 2.94% - ----------------------------------------- Average days to maturity 36 ABOUT YOUR FUND The Board of Trustees approved a proposal to reorganize the Columbia Daily Income Company into Nations Cash Reserves under the new name Columbia Cash Reserves, subject to shareholder approval. Shareholders are scheduled to vote on this reorganization in the fourth quarter of 2005. The reorganization is proposed to take place within a reasonable time thereafter. Karen Arneil has managed the fund since October 2004 and has been with the advisor or its predecessors or affiliate organizations since 1996. /s/ Karen Arneil There is a chance that the fund's investments may not keep pace with the rate of inflation over the long term. Also, an investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency. Although the fund seeks to preserve the value of your investment at $1 per share, it is possible to lose money by investing in the fund. 49 FINANCIAL STATEMENTS ___________________________________________________________ AUGUST 31, 2005 COLUMBIA FUNDS
A GUIDE TO UNDERSTANDING YOUR FUND'S FINANCIAL STATEMENTS -------------------------------------------------------------------------- INVESTMENT PORTFOLIO The investment portfolio details all of the fund's holdings and their market value as of the last day of the reporting period. Portfolio holdings are organized by type of asset, industry, country or geographic region (if applicable) to demonstrate areas of concentration and diversification. -------------------------------------------------------------------------- STATEMENT OF ASSETS AND LIABILITIES This statement details the fund's assets, liabilities, net assets and share price for each share class as of the last day of the reporting period. Net assets are calculated by subtracting all the fund's liabilities (including any unpaid expenses) from the total of the fund's investment and non-investment assets. The share price for each class is calculated by dividing net assets for that class by the number of shares outstanding in that class as of the last day of the reporting period. -------------------------------------------------------------------------- STATEMENT OF OPERATIONS This statement details income earned by the fund and the expenses accrued by the fund during the reporting period. The Statement of Operations also shows any net gain or loss the fund realized on the sales of its holdings during the period, as well as any unrealized gains or losses recognized over the period. The total of these results represents the fund's net increase or decrease in net assets from operations. -------------------------------------------------------------------------- STATEMENT OF CHANGES IN NET ASSETS This statement demonstrates how the fund's net assets were affected by its operating results, distributions to shareholders and shareholder transactions (e.g., subscriptions, redemptions and dividend reinvestments) during the reporting period. The Statement of Changes in Net Assets also details changes in the number of shares outstanding. -------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS These notes disclose the organizational background of the fund, its significant accounting policies (including those surrounding security valuation, income recognition and distributions to shareholders), federal tax information, fees and compensation paid to affiliates and significant risks and contingencies. -------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS The financial highlights demonstrate how the fund's net asset value per share was affected by the fund's operating results. The financial highlights table also discloses the classes' performance and certain key ratios (e.g., class expenses and net investment income as a percentage of average net assets).
50 INVESTMENT PORTFOLIO ___________________________________________________________ AUGUST 31, 2005 COLUMBIA INTERNATIONAL STOCK FUND SHARES VALUE ($) - -------------------------------------------------------------------------- COMMON STOCKS - 97.1% CONSUMER DISCRETIONARY - 10.8% AUTO COMPONENTS - 1.5% Compagnie Generale des Etablissements Michelin, Class B 80,000 4,874,553 Continental AG 72,600 5,762,711 Denso Corp. 210,600 5,359,200 ----------- Auto Components Total 15,996,464 AUTOMOBILES - 2.4% Nissan Motor Co., Ltd. 401,800 4,232,171 Renault SA 56,082 4,974,732 Toyota Motor Corp. 384,600 15,749,409 ----------- Automobiles Total 24,956,312 HOTELS, RESTAURANTS & LEISURE - 1.0% Accor SA 96,600 5,095,142 Carnival Corp. 72,500 3,577,150 Compass Group PLC 485,100 2,181,290 ----------- Hotels, Restaurants & Leisure Total 10,853,582 HOUSEHOLD DURABLES - 2.3% Daiwa House Industry Co., Ltd. 315,000 3,824,239 Koninklijke (Royal) Philips Electronics NV 189,221 4,979,537 Matsushita Electric Industrial Co., Ltd. 420,000 7,352,620 Pioneer Corp. 53,600 832,357 Sharp Corp. 347,000 5,253,434 Sony Corp. 57,300 1,920,267 ----------- Household Durables Total 24,162,454 LEISURE EQUIPMENT & PRODUCTS - 0.6% Fuji Photo Film Co., Ltd. 79,400 2,573,702 Sega Sammy Holdings, Inc. 48,000 3,537,190 ----------- Leisure Equipment & Products Total 6,110,892 MEDIA - 1.7% British Sky Broadcasting Group PLC 548,200 5,651,176 JC Decaux SA (a) 65,500 1,533,524 Pearson PLC 517,500 6,262,704 Vivendi Universal SA 149,700 4,718,764 ----------- Media Total 18,166,168 SPECIALTY RETAIL - 0.5% Kingfisher PLC 345,400 1,572,497 Yamada Denki Co., Ltd. 50,400 3,250,804 ----------- Specialty Retail Total 4,823,301 TEXTILES, APPAREL & LUXURY GOODS - 0.8% Burberry Group PLC 544,846 4,177,762 Swatch Group AG, Registered Shares 138,900 3,956,634 ----------- Textiles, Apparel & Luxury Goods Total 8,134,396 ----------- CONSUMER DISCRETIONARY TOTAL 113,203,569 SHARES VALUE ($) - -------------------------------------------------------------------------- CONSUMER STAPLES - 8.5% BEVERAGES - 0.9% Diageo PLC 527,786 7,571,788 SABMiller PLC 141,383 2,500,549 ----------- Beverages Total 10,072,337 FOOD & STAPLES RETAILING - 0.9% FamilyMart Co., Ltd. 54,200 1,682,087 Lawson, Inc. 43,200 1,618,229 Tesco PLC 1,106,920 6,531,779 ----------- Food & Staples Retailing Total 9,832,095 FOOD PRODUCTS - 3.6% Nestle SA, Registered Shares 87,120 24,481,424 Royal Numico NV (a) 132,825 5,505,783 Unilever PLC 751,631 7,594,176 ----------- Food Products Total 37,581,383 HOUSEHOLD PRODUCTS - 1.2% Kao Corp. 300,000 7,157,209 Reckitt Benckiser PLC 169,187 5,258,910 ----------- Household Products Total 12,416,119 TOBACCO - 1.9% British American Tobacco PLC 390,886 7,889,802 Imperial Tobacco Group PLC 205,694 5,731,555 Japan Tobacco, Inc. 444 6,432,945 ----------- Tobacco Total 20,054,302 ----------- CONSUMER STAPLES TOTAL 89,956,236 ENERGY - 11.5% ENERGY EQUIPMENT & SERVICES - 1.0% Saipem S.p.A 347,400 5,851,937 Stolt Offshore SA (a) 351,000 4,462,195 ----------- Energy Equipment & Services Total 10,314,132 ----------- OIL, GAS & CONSUMABLE FUELS - 10.5% BG Group PLC 1,238,895 11,197,016 BP PLC 1,138,040 12,971,362 BP PLC, ADR 227,930 15,585,853 CNOOC Ltd. 8,307,000 5,975,730 EnCana Corp. 150,300 7,365,067 ENI S.p.A 409,431 12,130,044 OMV AG 132,950 7,240,338 Royal Dutch Shell PLC, Class A 160,500 5,237,656 Royal Dutch Shell PLC, Class B 260,523 8,835,241 Statoil ASA 159,400 3,915,308 Total SA 76,630 20,173,078 ----------- Oil, Gas & Consumable Fuels Total 110,626,693 ----------- ENERGY TOTAL 120,940,825 See Accompanying Notes to Financial Statements. | 51 ________________________________________________________________________________ AUGUST 31, 2005 COLUMBIA INTERNATIONAL STOCK FUND SHARES VALUE ($) - -------------------------------------------------------------------------- COMMON STOCKS - (CONTINUED) FINANCIALS - 24.7% CAPITAL MARKETS - 2.6% Credit Suisse Group, Registered Shares 169,100 7,355,924 Deutsche Bank AG, Registered Shares 67,759 5,893,464 Nomura Holdings, Inc. 531,500 7,307,005 UBS AG, Registered Shares 77,500 6,359,065 ----------- Capital Markets Total 26,915,458 COMMERCIAL BANKS - 13.8% Anglo Irish Bank Corp., PLC 229,900 3,104,958 Australia & New Zealand Banking Group Ltd. 448,000 7,513,313 Banco Bilbao Vizcaya Argentaria SA 467,600 7,781,705 Banco de Sabadell SA 100,353 2,622,608 Banco Popolare di Verona e Novara 229,298 4,119,073 Banco Popular Espanol SA 606,400 7,418,307 Barclays PLC 995,110 9,941,751 BNP Paribas SA 113,211 8,277,912 Commerzbank AG 99,000 2,583,139 DNB NOR ASA 399,000 4,222,758 HBOS PLC 467,300 7,330,455 HSBC Holdings PLC 1,027,300 16,575,844 KBC Groep NV 33,200 2,757,459 Mitsubishi Tokyo Financial Group, Inc. 761 7,834,699 Mitsui Trust Holdings, Inc. 296,000 3,334,215 Mizuho Financial Group, Inc. 1,572 8,788,857 National Bank of Greece SA 126,571 4,706,818 Resona Holdings, Inc. (a) 1,084 2,331,247 Royal Bank of Scotland Group PLC 471,216 13,777,832 Skandinaviska Enskilda Banken AB, Class A 197,200 3,591,818 Societe Generale 34,100 3,700,711 Sumitomo Mitsui Financial Group, Inc. 696 5,714,533 UFJ Holdings, Inc. (a) 398 2,501,071 United Overseas Bank Ltd. 550,000 4,653,359 ----------- Commercial Banks Total 145,184,442 CONSUMER FINANCE - 1.1% Aiful Corp. 49,050 3,779,011 ORIX Corp. 24,700 4,078,303 Takefuji Corp. 46,300 3,248,626 ----------- Consumer Finance Total 11,105,940 DIVERSIFIED FINANCIAL SERVICES - 1.1% Fortis 79,200 2,263,923 ING Groep NV 238,240 6,956,443 Suncorp-Metway Ltd. 193,000 2,874,845 ----------- Diversified Financial Services Total 12,095,211 INSURANCE - 4.3% Aegon NV 173,832 2,449,825 Allianz AG, Registered Shares 59,564 7,729,527 Aviva PLC 426,400 4,728,024 AXA 230,680 6,165,514 Irish Life & Permanent PLC 183,200 3,394,166 SHARES VALUE ($) - -------------------------------------------------------------------------- Mitsui Sumitomo Insurance Co., Ltd. 557,000 5,699,272 Muenchener Rueckversicherungs- Gesellschaft AG, Registered Shares 27,200 3,054,016 QBE Insurance Group Ltd. 359,200 4,651,114 Sampo Oyj, Class A 298,000 4,706,846 Storebrand ASA 307,000 3,062,840 ----------- Insurance Total 45,641,144 REAL ESTATE - 1.8% CapitaLand Ltd. 3,018,000 5,255,398 Sun Hung Kai Properties Ltd. 499,000 5,057,436 Swire Pacific Ltd., Class A 957,000 9,119,063 ----------- Rea1 Estates Total 19,431,897 ----------- FINANCIALS TOTAL 260,374,092 HEALTH CARE - 9.6% HEALTH CARE EQUIPMENT & SUPPLIES - 1.1% GN Store Nord A/S 456,500 5,973,637 Smith & Nephew PLC 328,605 3,166,365 Terumo Corp. 87,000 2,503,921 ----------- Health Care Equipment & Supplies Total 11,643,923 PHARMACEUTICALS - 8.5% Astellas Pharma, Inc. 77,400 2,762,318 AstraZeneca PLC 327,998 15,034,210 Eisai Co., Ltd. 94,800 3,610,410 GlaxoSmithKline PLC 799,537 19,419,170 Novartis AG, Registered Shares 193,444 9,403,692 Roche Holding AG, Genusschein 53,652 7,433,347 Sanofi-Aventis 137,608 11,799,786 Schering AG 33,800 2,140,477 Shire Pharmaceuticals Group PLC 170,900 2,148,042 Takeda Pharmaceutical Co., Ltd. 148,700 8,059,321 Teva Pharmaceutical Industries Ltd., ADR 219,100 7,107,604 ----------- Pharmaceuticals Total 88,918,377 ----------- HEALTH CARE TOTAL 100,562,300 INDUSTRIALS - 11.4% AEROSPACE & DEFENSE - 0.3% Singapore Technologies Engineering Ltd. 2,344,000 3,625,152 ----------- Aerospace & Defense Total 3,625,152 AIR FREIGHT & LOGISTICS - 0.3% Deutsche Post AG, Registered Shares 132,600 3,351,620 ----------- Air Freight & Logistics Total 3,351,620 BUILDING PRODUCTS - 0.4% Nippon Sheet Glass Co., Ltd. 514,000 2,236,487 Wienerberger AG 58,044 2,393,279 ----------- Building Products Total 4,629,766 52 | See Accompanying Notes to Financial Statements. ________________________________________________________________________________ AUGUST 31, 2005 COLUMBIA INTERNATIONAL STOCK FUND SHARES VALUE ($) - -------------------------------------------------------------------------- COMMON STOCKS - (CONTINUED) INDUSTRIALS - (CONTINUED) COMMERCIAL SERVICES & SUPPLIES - 0.4% Randstad Holding NV 50,518 1,924,831 Securitas AB, Class B 159,400 2,589,167 ----------- Commercial Services & Supplies Total 4,513,998 CONSTRUCTION & ENGINEERING - 1.8% Shimizu Corp. 1,137,000 6,121,533 Vinci SA 139,720 12,405,210 ----------- Construction & Engineering Total 18,526,743 ELECTRICAL EQUIPMENT - 1.4% ABB Ltd. (a) 605,200 4,391,049 Mitsubishi Electric Corp. 1,227,000 6,611,177 Shanghai Electric Group Co., Ltd., Class H (a) 11,402,000 3,482,737 ----------- Electrical Equipment Total 14,484,963 INDUSTRIAL CONGLOMERATES - 2.4% Hutchison Whampoa Ltd. 687,000 6,790,995 Keppel Corp., Ltd. 367,000 2,538,284 SembCorp Industries Ltd. 1,895,980 3,176,934 Siemens AG, Registered Shares 71,957 5,462,300 Smiths Group PLC 437,829 7,188,632 ----------- Industrial Conglomerates Total 25,157,145 MACHINERY - 1.3% Atlas Copco AB, Class B 219,800 3,388,968 Komatsu Ltd. 689,000 7,712,916 THK Co., Ltd. 91,900 2,092,941 ----------- Machinery Total 13,194,825 MARINE - 0.3% Kawasaki Kisen Kaisha Ltd. 452,000 2,986,127 ----------- Marine Total 2,986,127 ROAD & RAIL - 1.5% Canadian National Railway Co. 40,402 2,664,104 Canadian Pacific Railway Ltd. 148,200 5,591,652 ComfortDelGro Corp., Ltd. 4,090,000 3,518,338 East Japan Railway Co. 831 4,482,916 ----------- Road & Rail Total 16,257,010 TRADING COMPANIES & DISTRIBUTORS - 0.9% Mitsubishi Corp. 592,900 9,819,822 ----------- Trading Companies & Distributors Total 9,819,822 TRANSPORTATION INFRASTRUCTURE - 0.4% BAA PLC 342,700 3,791,135 ----------- Transportation Infrastructure Total 3,791,135 ----------- INDUSTRIALS TOTAL 120,338,306 SHARES VALUE ($) - -------------------------------------------------------------------------- INFORMATION TECHNOLOGY - 6.3% COMMUNICATIONS EQUIPMENT - 1.3% Nokia Oyj 385,000 6,056,745 Tandberg ASA 119,000 1,459,337 Telefonaktiebolaget LM Ericsson, ADR 183,800 6,414,620 ----------- Communications Equipment Total 13,930,702 COMPUTERS & PERIPHERALS - 0.5% Toshiba Corp. 1,310,000 5,199,448 ----------- Computers & Peripherals Total 5,199,448 ELECTRONIC EQUIPMENT & INSTRUMENTS - 0.9% Hoya Corp. 28,500 3,729,658 Omron Corp. 96,700 2,145,754 TDK Corp. 47,700 3,561,687 ----------- Electronic Equipment & Instruments Total 9,437,099 OFFICE ELECTRONICS - 0.4% Canon, Inc. 87,400 4,425,770 ----------- Office Electronics Total 4,425,770 SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 1.6% Advantest Corp. 33,200 2,612,895 ARM Holdings PLC 968,800 2,017,174 Marvell Technology Group Ltd. (a) 80,600 3,803,514 Samsung Electronics Co., Ltd. 11,431 6,028,850 Taiwan Semiconductor Manufacturing Co., Ltd., ADR 322,979 2,658,117 ----------- Semiconductors & Semiconductor Equipment Total 17,120,550 SOFTWARE - 1.6% Cognos, Inc. (a) 134,900 4,871,239 Sage Group PLC 888,300 3,671,988 SAP AG 44,399 7,546,891 ----------- Software Total 16,090,118 ----------- INFORMATION TECHNOLOGY TOTAL 66,203,687 MATERIALS - 4.1% CHEMICALS - 4.1% BASF AG 87,026 6,111,506 Bayer AG 139,900 4,950,925 Novozymes A/S, Class B 60,450 3,151,097 Shin-Etsu Chemical Co., Ltd. 122,500 4,976,004 Solvay SA 36,700 3,988,949 Sumitomo Chemical Co., Ltd. 1,555,000 8,695,727 Syngenta AG 63,238 6,746,757 Teijin Ltd. 872,000 4,649,315 ----------- Chemicals Total 43,270,280 ----------- MATERIALS TOTAL 43,270,280 See Accompanying Notes to Financial Statements. | 53 ________________________________________________________________________________ AUGUST 31, 2005 COLUMBIA INTERNATIONAL STOCK FUND SHARES VALUE ($) - -------------------------------------------------------------------------- COMMON STOCKS - (CONTINUED) TELECOMMUNICATION SERVICES - 5.6% DIVERSIFIED TELECOMMUNICATION SERVICES - 2.1% Deutsche Telekom AG, Registered Shares 481,313 9,158,374 France Telecom SA 149,700 4,521,709 Koninklijke (Royal) KPN NV 130,281 1,232,928 Nippon Telegraph & Telephone Corp. 771 3,355,912 Telekom Austria AG 206,500 4,340,970 ------------- Diversified Telecommunication Services Total 22,609,893 WIRELESS TELECOMMUNICATION SERVICES - 3.5% China Mobile (Hong Kong) Ltd. 715,000 3,108,898 NTT DoCoMo, Inc. 2,013 3,244,469 O2 PLC 1,061,600 2,933,018 Vodafone Group PLC 9,843,260 27,060,797 ------------- Wireless Telecommunication Services Total 36,347,182 ------------- TELECOMMUNICATION SERVICES TOTAL 58,957,075 UTILITIES - 4.6% ELECTRIC UTILITIES - 2.1% E.ON AG 89,756 8,584,368 Fortum Oyj 204,600 3,981,636 Scottish & Southern Energy PLC 153,000 2,730,296 Tokyo Electric Power Co., Inc. 289,900 7,134,167 ------------- Electric Utilities Total 22,430,467 GAS UTILITIES - 0.4% Tokyo Gas Co., Ltd. 1,211,000 4,531,933 ------------- Gas Utilities Total 4,531,933 MULTI-UTILITIES - 2.1% National Grid PLC 424,152 4,026,786 RWE AG 93,700 6,285,476 Veolia Environnement 279,600 11,430,414 ------------- Multi-Utilities Total 21,742,676 ------------- UTILITIES TOTAL 48,705,076 Total Common Stocks (cost of $866,072,204) 1,022,511,446 SHARES VALUE ($) - -------------------------------------------------------------------------- INVESTMENT COMPANIES - 1.1% iShares MSCI Malaysia Index Fund 382,800 2,779,128 iShares MSCI South Korea Index Fund 102,900 3,611,790 iShares MSCI Taiwan Index Fund 465,000 5,463,750 ------------- Total Investment Companies (cost of $12,054,207) 11,854,668 PREFERRED STOCK - 0.4% CONSUMER DISCRETIONARY - 0.4% AUTOMOBILES - 0.4% Porsche AG 5,990 4,681,549 ------------- Automobiles Total 4,681,549 ------------- CONSUMER DISCRETIONARY TOTAL 4,681,549 Total Preferred Stock (cost of $3,821,577) 4,681,549 SHORT-TERM OBLIGATION - 1.4% PAR ($) Repurchase agreement with State Street Bank & Trust Co., dated 08/31/05, due 09/01/05 at 3.430%, collateralized by a U.S. Treasury Bond maturing 08/15/13, market value of $14,493,106 (repurchase proceeds $14,206,353) 14,205,000 14,205,000 ------------- Total Short-Term Obligation (cost of $14,205,000) 14,205,000 TOTAL INVESTMENTS - 100.0% (COST OF $896,152,988) (b) 1,053,252,663 OTHER ASSETS & LIABILITIES, NET - 0.0% 196,360 NET ASSETS - 100.0% 1,053,449,023 54 | See Accompanying Notes to Financial Statements. ________________________________________________________________________________ AUGUST 31, 2005 COLUMBIA INTERNATIONAL STOCK FUND NOTES TO INVESTMENT PORTFOLIO: (a) Non-income producing security. (b) Cost for federal income tax purposes is $896,365,841. The Fund was invested in the following countries at August 31, 2005: SUMMARY OF SECURITIES % OF TOTAL BY COUNTRY (UNAUDITED) VALUE INVESTMENTS ---------------------------------------------------------- United Kingdom $ 262,292,635 24.9% Japan 242,655,327 23.0 France 99,671,051 9.5 Germany 83,296,343 7.9 Switzerland 70,127,892 6.7 Hong Kong 30,052,123 2.9 Netherlands 23,049,348 2.2 Singapore 22,767,465 2.2 Italy 22,101,054 2.1 Canada 20,492,062 1.9 United States* 18,008,514 1.7 Spain 17,822,619 1.7 Sweden 15,984,572 1.5 Australia 15,039,272 1.4 Finland 14,745,227 1.4 Austria 13,974,587 1.3 Norway 12,660,244 1.2 South Korea 9,640,640 0.9 Denmark 9,124,734 0.9 Belgium 9,010,331 0.9 Taiwan 8,121,867 0.8 Israel 7,107,604 0.7 Ireland 6,499,124 0.6 Greece 4,706,818 0.4 Luxembourg 4,462,195 0.4 Panama 3,577,150 0.3 China 3,482,737 0.3 Malaysia 2,779,128 0.3 -------------- ----- $1,053,252,663 100.0% ============== ===== * Includes Short-Term Obligation. Certain securities are listed by country of underlying exposure but may trade predominately on other exchanges. ACRONYM NAME ------- ---- ADR American Depositary Receipt See Accompanying Notes to Financial Statements. | 55 INVESTMENT PORTFOLIO ___________________________________________________________ AUGUST 31, 2005 COLUMBIA MID CAP GROWTH FUND SHARES VALUE ($) - -------------------------------------------------------------------------- COMMON STOCKS - 99.2% CONSUMER DISCRETIONARY - 19.7% AUTO COMPONENTS - 0.5% Autoliv, Inc. 94,480 4,204,360 ----------- Auto Components Total 4,204,360 DIVERSIFIED CONSUMER SERVICES - 0.8% Career Education Corp. (a) 94,260 3,694,992 Education Management Corp. (a) 97,736 3,310,318 ----------- Diversified Consumer Services Total 7,005,310 HOTELS, RESTAURANTS & LEISURE - 5.4% Applebee's International, Inc. 242,830 5,368,971 Brinker International, Inc. (a) 88,390 3,283,689 Cheesecake Factory, Inc. (a) 213,020 6,746,343 Harrah's Entertainment, Inc. 57,028 3,966,868 Hilton Hotels Corp. 275,990 6,394,688 Marriott International, Inc., Class A 72,970 4,612,434 Starwood Hotels & Resorts Worldwide, Inc. 69,000 4,022,700 Wendy's International, Inc. 68,050 3,207,877 Yum! Brands, Inc. 163,400 7,741,892 ----------- Hotels, Restaurants & Leisure Total 45,345,462 HOUSEHOLD DURABLES - 2.6% Centex Corp. 28,770 1,949,168 D.R. Horton, Inc. 96,086 3,547,495 Fortune Brands, Inc. 55,810 4,854,354 Tempur-Pedic International, Inc. (a) 695,120 11,170,578 ----------- Household Durables Total 21,521,595 INTERNET & CATALOG RETAIL - 0.4% Netflix, Inc. (a) 147,660 3,183,550 ----------- Internet & Catalog Retail Total 3,183,550 LEISURE EQUIPMENT & PRODUCTS - 0.9% Marvel Enterprises, Inc. (a) 235,730 4,537,802 SCP Pool Corp. 95,170 3,483,222 ----------- Leisure Equipment & Products Total 8,021,024 MEDIA - 3.2% Getty Images, Inc. (a) 51,090 4,372,793 Grupo Televisa SA, ADR 79,170 4,971,876 Lamar Advertising Co., Class A (a) 68,010 2,735,362 XM Satellite Radio Holdings, Inc., Class A (a) 428,725 15,112,557 ----------- Media Total 27,192,588 SPECIALTY RETAIL - 4.8% Abercrombie & Fitch Co., Class A 151,940 8,449,384 Chico's FAS, Inc. (a) 405,580 14,077,682 Children's Place Retail Stores, Inc. (a) 69,820 2,856,336 PETsMART, Inc. 167,290 4,311,063 Urban Outfitters, Inc. (a) 186,600 10,386,156 ----------- Specialty Retail Total 40,080,621 SHARES VALUE ($) - -------------------------------------------------------------------------- TEXTILES, APPAREL & LUXURY GOODS - 1.1% Coach, Inc. (a) 279,350 9,271,626 ----------- Textiles, Apparel & Luxury Goods Total 9,271,626 ----------- CONSUMER DISCRETIONARY TOTAL 165,826,136 CONSUMER STAPLES - 4.0% FOOD & STAPLES RETAILING - 0.9% Rite Aid Corp. (a) 681,850 2,781,948 Whole Foods Market, Inc. 34,250 4,427,155 ----------- Food & Staples Retailing Total 7,209,103 FOOD PRODUCTS - 2.1% Bunge Ltd. 33,860 1,988,259 Corn Products International, Inc. 412,090 9,280,267 H.J. Heinz Co. 92,350 3,317,212 Tyson Foods, Inc., Class A 185,500 3,298,190 ----------- Food Products Total 17,883,928 PERSONAL PRODUCTS - 0.6% Alberto-Culver Co. 65,600 2,817,520 Estee Lauder Companies, Inc., Class A 63,080 2,547,802 ----------- Personal Products Total 5,365,322 TOBACCO - 0.4% UST, Inc. 72,570 3,088,579 ----------- Tobacco Total 3,088,579 ----------- CONSUMER STAPLES TOTAL 33,546,932 ENERGY - 10.9% ENERGY EQUIPMENT & SERVICES - 3.7% Diamond Offshore Drilling, Inc. 66,040 3,900,322 FMC Technologies, Inc. (a) 176,270 7,087,817 Grant Prideco, Inc. (a) 66,100 2,436,446 Nabors Industries Ltd. (a) 67,670 4,533,890 National-Oilwell Varco, Inc. (a) 109,000 6,998,890 Smith International, Inc. 193,360 6,717,326 ----------- Energy Equipment & Services Total 31,674,691 OIL, GAS & CONSUMABLE FUELS - 7.2% Chesapeake Energy Corp. 178,140 5,631,005 EOG Resources, Inc. 144,570 9,227,903 Massey Energy Co. 157,300 7,990,840 Peabody Energy Corp. 82,520 5,914,209 Southwestern Energy Co. (a) 131,960 7,640,484 Teekay Shipping Corp. 175,500 8,099,325 Ultra Petroleum Corp. (a) 150,920 6,676,701 XTO Energy, Inc. 231,950 9,231,610 ----------- Oil, Gas & Consumable Fuels Total 60,412,077 ----------- ENERGY TOTAL 92,086,768 56 | See Accompanying Notes to Financial Statements. ________________________________________________________________________________ AUGUST 31, 2005 COLUMBIA MID CAP GROWTH FUND SHARES VALUE ($) - -------------------------------------------------------------------------- COMMON STOCKS - (CONTINUED) FINANCIALS - 5.6% CAPITAL MARKETS - 3.2% Affiliated Managers Group, Inc. (a) 90,830 6,595,166 E*TRADE Financial Corp. (a) 281,180 4,498,880 Lazard Ltd., Class A 272,300 6,921,866 Legg Mason, Inc. 27,060 2,828,582 T. Rowe Price Group, Inc. 97,200 6,123,600 ----------- Capital Markets Total 26,968,094 COMMERCIAL BANKS - 1.4% East West Bancorp, Inc. 174,520 5,923,209 Zions Bancorporation 85,630 5,982,112 ----------- Commercial Banks Total 11,905,321 DIVERSIFIED FINANCIAL SERVICES - 0.5% Chicago Mercantile Exchange Holdings, Inc. 15,600 4,330,560 ----------- Diversified Financial Services Total 4,330,560 INSURANCE - 0.5% Ambac Financial Group, Inc. 58,610 4,019,474 ----------- Insurance Total 4,019,474 ----------- FINANCIALS TOTAL 47,223,449 HEALTH CARE - 17.6% BIOTECHNOLOGY - 1.5% Amylin Pharmaceuticals Inc. (a) 275,520 9,023,280 Neurocrine Biosciences, Inc. (a) 86,855 3,977,959 ----------- Biotechnology Total 13,001,239 HEALTH CARE EQUIPMENT & SUPPLIES - 5.4% Beckman Coulter, Inc. 58,270 3,250,883 Biomet, Inc. 108,069 3,986,665 DENTSPLY International, Inc. 59,480 3,150,656 Gen-Probe, Inc. (a) 138,510 6,304,975 Kinetic Concepts, Inc. (a) 71,320 3,908,336 Nektar Therapeutics (a) 206,470 3,526,508 ResMed, Inc. (a) 68,602 4,962,669 Thermo Electron Corp. (a) 199,510 5,566,329 Varian Medical Systems, Inc. (a) 163,830 6,523,710 Waters Corp. (a) 87,910 3,997,268 ----------- Health Care Equipment & Supplies Total 45,177,999 HEALTH CARE PROVIDERS & SERVICES - 6.8% Cerner Corp. (a) 57,120 4,498,771 Community Health Systems, Inc. (a) 116,570 4,293,273 Coventry Health Care, Inc. (a) 113,460 9,076,800 DaVita, Inc. (a) 209,125 9,600,929 Health Management Associates, Inc., Class A 157,760 3,836,723 Henry Schein, Inc. (a) 82,760 3,450,264 Laboratory Corp. of America Holdings (a) 123,160 6,074,251 SHARES VALUE ($) - -------------------------------------------------------------------------- Medco Health Solutions, Inc. (a) 63,780 3,142,441 Quest Diagnostics, Inc. 68,730 3,435,125 United Surgical Partners International, Inc. (a) 80,535 3,085,296 WellPoint, Inc. (a) 88,490 6,570,383 ----------- Health Care Providers & Services Total 57,064,256 PHARMACEUTICALS - 3.9% Allergan, Inc. 82,960 7,636,468 Endo Pharmaceuticals Holdings, Inc. (a) 142,467 4,274,010 Forest Laboratories, Inc. (a) 113,350 5,032,740 Medicis Pharmaceutical Corp., Class A 248,260 8,443,323 Shire Pharmaceuticals Group PLC, ADR 90,300 3,442,236 Teva Pharmaceutical Industries Ltd., ADR 130,426 4,231,019 ----------- Pharmaceuticals Total 33,059,796 ----------- HEALTH CARE TOTAL 148,303,290 INDUSTRIALS - 12.9% AEROSPACE & DEFENSE - 2.2% Armor Holdings, Inc. (a) 91,540 3,882,211 L-3 Communications Holdings, Inc. 96,170 7,874,400 Rockwell Collins, Inc. 141,220 6,796,919 ----------- Aerospace & Defense Total 18,553,530 AIR FREIGHT & LOGISTICS - 1.3% C.H. Robinson Worldwide, Inc. 104,870 6,475,723 UTI Worldwide, Inc. 58,940 4,447,612 ----------- Air Freight & Logistics Total 10,923,335 AIRLINES - 0.4% Southwest Airlines Co. 269,570 3,590,672 ----------- Airlines Total 3,590,672 COMMERCIAL SERVICES & SUPPLIES - 4.4% ChoicePoint, Inc. (a) 182,570 7,837,730 Cintas Corp. 75,090 3,097,463 Corporate Executive Board Co. 181,330 14,646,024 Robert Half International, Inc. 330,900 11,144,712 ----------- Commercial Services & Supplies Total 36,725,929 CONSTRUCTION & ENGINEERING - 1.0% Jacobs Engineering Group, Inc. (a) 140,170 8,746,608 ----------- Construction & Engineering Total 8,746,608 ELECTRICAL EQUIPMENT - 0.8% Rockwell Automation, Inc. 130,780 6,805,791 ----------- Electrical Equipment Total 6,805,791 MACHINERY - 2.2% Joy Global, Inc. 188,175 8,994,765 Terex Corp. (a) 202,525 9,879,169 ----------- Machinery Total 18,873,934 See Accompanying Notes to Financial Statements. | 57 ________________________________________________________________________________ AUGUST 31, 2005 COLUMBIA MID CAP GROWTH FUND SHARES VALUE ($) - -------------------------------------------------------------------------- COMMON STOCKS - (CONTINUED) INDUSTRIALS - (CONTINUED) ROAD & RAIL - 0.6% Landstar System, Inc. 125,830 4,570,146 ----------- Road & Rail Total 4,570,146 ----------- INDUSTRIALS TOTAL 108,789,945 INFORMATION TECHNOLOGY - 19.4% COMMUNICATIONS EQUIPMENT - 1.7% Comverse Technology, Inc. (a) 339,770 8,759,271 F5 Networks, Inc. (a) 87,500 3,612,875 Harris Corp. 58,730 2,267,565 ----------- Communications Equipment Total 14,639,711 COMPUTERS & PERIPHERALS - 1.1% SanDisk Corp. (a) 235,910 9,160,385 ----------- Computers & Peripherals Total 9,160,385 INTERNET SOFTWARE & SERVICES - 0.6% VeriSign, Inc. (a) 225,750 4,921,350 ----------- Internet Software & Services Total 4,921,350 IT SERVICES - 3.7% Affiliated Computer Services, Inc., Class A (a) 79,930 4,152,363 Alliance Data Systems Corp. (a) 180,920 7,611,304 Cognizant Technology Solutions Corp., Class A (a) 176,060 8,016,012 Fiserv, Inc. (a) 94,770 4,252,330 Global Payments, Inc. 65,000 4,275,700 Paychex, Inc. 76,290 2,603,778 ----------- IT Services Total 30,911,487 SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 7.3% Advanced Micro Devices, Inc. (a) 119,060 2,472,876 Altera Corp. (a) 192,630 4,212,818 Broadcom Corp., Class A (a) 344,310 14,977,485 Cypress Semiconductor Corp. (a) 165,100 2,580,513 Intersil Corp., Class A 125,700 2,639,700 KLA-Tencor Corp. 72,690 3,689,745 Marvell Technology Group Ltd. (a) 349,380 16,487,242 MEMC Electronic Materials, Inc. (a) 355,070 5,986,480 Microchip Technology, Inc. 72,377 2,252,372 National Semiconductor Corp. 121,950 3,040,214 NVIDIA Corp. (a) 103,710 3,181,823 ----------- Semiconductors & Semiconductor Equipment Total 61,521,268 SOFTWARE - 5.0% Amdocs Ltd. (a) 153,560 4,506,986 Autodesk, Inc. 88,539 3,824,885 Check Point Software Technologies Ltd. (a) 205,170 4,628,635 Citrix Systems, Inc. (a) 259,330 6,172,054 SHARES VALUE ($) - -------------------------------------------------------------------------- Hyperion Solutions Corp. (a) 107,770 4,673,985 McAfee, Inc. (a) 92,850 2,845,853 Mercury Interactive Corp. (a) 147,350 5,403,324 NAVTEQ (a) 158,650 7,383,571 Symantec Corp. (a) 128,445 2,694,776 ----------- Software Total 42,134,069 ----------- INFORMATION TECHNOLOGY TOTAL 163,288,270 MATERIALS - 4.1% CHEMICALS - 2.2% Ecolab, Inc. 101,500 3,349,500 Potash Corp. of Saskatchewan, Inc. 134,890 14,847,342 ----------- Chemicals Total 18,196,842 METALS & MINING - 1.9% Freeport-McMoRan Copper & Gold, Inc., Class B 109,780 4,629,423 Inco Ltd. 99,560 4,214,375 Phelps Dodge Corp. 66,480 7,148,594 ----------- Metals & Mining Total 15,992,392 ----------- MATERIALS TOTAL 34,189,234 TELECOMMUNICATION SERVICES - 4.0% WIRELESS TELECOMMUNICATION SERVICES - 4.0% American Tower Corp., Class A (a) 517,805 12,344,471 Crown Castle International Corp. (a) 320,390 7,932,857 Millicom International Cellular SA (a) 340,730 6,545,423 NII Holdings, Inc. (a) 48,460 3,693,621 VimpelCom, ADR (a) 68,530 2,825,492 ----------- Wireless Telecommunication Services Total 33,341,864 ----------- TELECOMMUNICATION SERVICES TOTAL 33,341,864 UTILITIES - 1.0% INDEPENDENT POWER PRODUCERS & ENERGY TRADERS - 1.0% AES Corp. (a) 541,110 8,517,071 ----------- Independent Power Producers & Energy Traders Total 8,517,071 ----------- UTILITIES TOTAL 8,517,071 Total Common Stocks (cost of $688,959,700) 835,112,959 58 | See Accompanying Notes to Financial Statements. ________________________________________________________________________________ AUGUST 31, 2005 COLUMBIA MID CAP GROWTH FUND SHARES VALUE ($) - -------------------------------------------------------------------------- CONVERTIBLE PREFERRED STOCK - 0.0% INFORMATION TECHNOLOGY - 0.0% INTERNET SOFTWARE & SERVICES - 0.0% Network Specialists, Inc., Series A (a)(b)(c) 394,218 3,942 ----------- Internet Software & Services Total 3,942 ----------- INFORMATION TECHNOLOGY TOTAL 3,942 Total Convertible Preferred Stock (cost of $3,000,000) 3,942 SHORT-TERM OBLIGATION - 0.2% PAR ($) Repurchase agreement with State Street Bank & Trust Co., dated 08/31/05, due 09/01/05 at 3.430%, collateralized by a U.S. Treasury Note maturing 02/28/06, market value of $1,433,688 (repurchase proceeds $1,402,134) 1,402,000 1,402,000 ----------- Total Short-Term Obligation (cost of $1,402,000) 1,402,000 TOTAL INVESTMENTS - 99.4% (COST OF $693,361,700) (d) 836,518,901 OTHER ASSETS & LIABILITIES, NET - 0.6% 5,245,099 NET ASSETS - 100.0% 841,764,000 - -------------------------------------------------------------------------- NOTES TO INVESTMENT PORTFOLIO: (a) Non-income producing security. (b) Represents fair value as determined in good faith under procedures approved by the Board of Trustees. (c) Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. This security may be resold in transactions exempt from registration, normally to qualified institutional buyers. At August 31, 2005, the value of this security represents less than 0.1% of net assets. (d) Cost for federal income tax purposes is $695,456,425. At August 31, 2005, the Fund held investments in the following sectors: % OF SECTOR (UNAUDITED) NET ASSETS -------------------------------------------------------- Consumer Discretionary 19.7% Information Technology 19.4 Health Care 17.6 Industrials 12.9 Energy 10.9 Financials 5.6 Materials 4.1 Consumer Staples 4.0 Telecommunication Services 4.0 Utilities 1.0 Short-Term Obligation 0.2 Other Assets & Liabilities, Net 0.6 ----- 100.0% ===== ACRONYM NAME ------- ---- ADR American Depositary Receipt See Accompanying Notes to Financial Statements. | 59 INVESTMENT PORTFOLIO ___________________________________________________________ AUGUST 31, 2005 COLUMBIA SMALL CAP GROWTH FUND I SHARES VALUE ($) - -------------------------------------------------------------------------- COMMON STOCKS - 98.0% CONSUMER DISCRETIONARY - 12.2% DIVERSIFIED CONSUMER SERVICES - 0.9% Education Management Corp. (a) 58,754 1,989,998 ----------- Diversified Consumer Services Total 1,989,998 HOTELS, RESTAURANTS & LEISURE - 5.5% Applebee's International, Inc. 61,850 1,367,503 Cheesecake Factory, Inc. (a) 34,710 1,099,266 Cosi, Inc. (a) 95,956 874,159 P.F. Chang's China Bistro, Inc. (a) 42,220 2,160,820 Pinnacle Entertainment, Inc. (a) 38,900 775,666 RARE Hospitality International, Inc. (a) 85,870 2,296,164 Scientific Games Corp., Class A (a) 107,040 3,226,185 ----------- Hotels, Restaurants & Leisure Total 11,799,763 HOUSEHOLD DURABLES - 1.4% Tempur-Pedic International, Inc. (a) 188,440 3,028,231 ----------- Household Durables Total 3,028,231 INTERNET & CATALOG RETAIL - 0.8% Blue Nile, Inc. (a) 19,510 659,633 Netflix, Inc. (a) 36,690 791,037 Provide Commerce, Inc. (a) 15,450 394,284 ----------- Internet & Catalog Retail Total 1,844,954 LEISURE EQUIPMENT & PRODUCTS - 1.2% Marvel Enterprises, Inc. (a) 62,110 1,195,618 SCP Pool Corp. 36,000 1,317,600 ----------- Leisure Equipment & Products Total 2,513,218 MEDIA - 1.3% Getty Images, Inc. (a) 21,772 1,863,465 Radio One, Inc., Class D (a) 61,400 858,372 ----------- Media Total 2,721,837 SPECIALTY RETAIL - 1.1% Aeropostale, Inc. (a) 29,400 750,876 Children's Place Retail Stores, Inc. (a) 22,530 921,702 PETCO Animal Supplies, Inc. (a) 28,432 628,916 ----------- Specialty Retail Total 2,301,494 ----------- CONSUMER DISCRETIONARY TOTAL 26,199,495 CONSUMER STAPLES - 2.1% FOOD PRODUCTS - 0.9% Corn Products International, Inc. 89,810 2,022,521 ----------- Food Products Total 2,022,521 HOUSEHOLD PRODUCTS - 0.6% Central Garden & Pet Co. (a) 25,900 1,283,086 ----------- Household Products Total 1,283,086 SHARES VALUE ($) - -------------------------------------------------------------------------- PERSONAL PRODUCTS - 0.6% Elizabeth Arden, Inc. (a) 54,670 1,214,768 ----------- Personal Products Total 1,214,768 ----------- CONSUMER STAPLES TOTAL 4,520,375 ENERGY - 8.0% ENERGY EQUIPMENT & SERVICES - 4.8% Atwood Oceanics, Inc. (a) 31,300 2,354,699 CAL Dive International, Inc. (a) 23,864 1,490,545 Core Laboratories NV (a) 41,900 1,333,677 FMC Technologies, Inc. (a) 44,180 1,776,478 Grey Wolf, Inc. (a) 296,850 2,324,336 Veritas DGC, Inc. (a) 32,700 1,051,632 ----------- Energy Equipment & Services Total 10,331,367 OIL, GAS & CONSUMABLE FUELS - 3.2% Arch Coal, Inc. 32,857 2,109,419 Carrizo Oil & Gas, Inc. (a) 58,200 1,376,430 Cheniere Energy, Inc. (a) 30,820 1,203,521 KFx, Inc. (a) 35,170 564,479 Southwestern Energy Co. (a) 26,580 1,538,982 ----------- Oil, Gas & Consumable Fuels Total 6,792,831 ----------- ENERGY TOTAL 17,124,198 FINANCIALS - 6.0% CAPITAL MARKETS - 1.8% Affiliated Managers Group, Inc. (a) 53,601 3,891,969 ----------- Capital Markets Total 3,891,969 COMMERCIAL BANKS - 1.5% Signature Bank (a) 50,140 1,503,699 UCBH Holdings, Inc. 89,400 1,704,858 ----------- Commercial Banks Total 3,208,557 CONSUMER FINANCE - 0.6% First Cash Financial Services, Inc. (a) 51,600 1,238,400 ----------- Consumer Finance Total 1,238,400 INSURANCE - 1.5% Allmerica Financial Corp. (a) 24,270 988,031 ProAssurance Corp. (a) 52,277 2,302,802 ----------- Insurance Total 3,290,833 THRIFTS & MORTGAGE FINANCE - 0.6% Sterling Financial Corp./WA 31,692 1,222,360 ----------- Thrifts & Mortgage Finance Total 1,222,360 ----------- FINANCIALS TOTAL 12,852,119 60 | See Accompanying Notes to Financial Statements. ________________________________________________________________________________ AUGUST 31, 2005 COLUMBIA SMALL CAP GROWTH FUND I SHARES VALUE ($) - -------------------------------------------------------------------------- COMMON STOCKS - (CONTINUED) HEALTH CARE - 22.3% BIOTECHNOLOGY - 5.0% Alexion Pharmaceuticals, Inc. (a) 37,650 1,076,790 Alkermes, Inc. (a) 49,100 922,098 CV Therapeutics, Inc. (a) 34,590 939,810 Digene Corp. (a) 73,770 2,133,429 Nabi Biopharmaceuticals (a) 104,020 1,401,149 Neurocrine Biosciences, Inc. (a) 21,770 997,066 Rigel Pharmaceuticals, Inc. (a) 71,960 1,448,555 United Therapeutics Corp. (a) 25,800 1,811,418 ----------- Biotechnology Total 10,730,315 HEALTH CARE EQUIPMENT & SUPPLIES - 5.2% ArthroCare Corp. (a) 55,732 2,026,973 Haemonetics Corp. (a) 27,263 1,211,568 Iris International, Inc. (a) 41,988 730,171 Kyphon, Inc. (a) 42,630 1,888,082 Nektar Therapeutics (a) 71,000 1,212,680 Possis Medical, Inc. (a) 104,700 1,364,241 ResMed, Inc. (a) 37,261 2,695,461 ----------- Health Care Equipment & Supplies Total 11,129,176 HEALTH CARE PROVIDERS & SERVICES - 8.6% Allscripts Healthcare Solutions, Inc. (a) 23,923 425,351 AmSurg Corp. (a) 38,970 1,084,925 Cerner Corp. (a) 27,088 2,133,451 Chemed Corp. 16,560 670,018 DaVita, Inc. (a) 34,650 1,590,781 HealthExtras, Inc. (a) 168,212 3,490,399 ICON PLC, ADR (a) 72,593 2,942,920 IDX Systems Corp. (a) 32,964 1,044,959 LHC Group, Inc. (a) 71,317 1,340,759 Matria Healthcare, Inc. (a) 24,000 870,000 United Surgical Partners International, Inc. (a) 73,503 2,815,900 ----------- Health Care Providers & Services Total 18,409,463 PHARMACEUTICALS - 3.5% MGI Pharma, Inc. (a) 72,125 1,944,490 NitroMed, Inc. (a) 56,400 1,063,704 Salix Pharmaceuticals Ltd. (a) 225,428 4,594,223 ----------- Pharmaceuticals Total 7,602,417 ----------- HEALTH CARE TOTAL 47,871,371 INDUSTRIALS - 16.8% AEROSPACE & DEFENSE - 2.6% Armor Holdings, Inc. (a) 27,200 1,153,552 BE Aerospace, Inc. (a) 162,090 2,570,747 Engineered Support Systems, Inc. 53,475 1,823,498 ----------- Aerospace & Defense Total 5,547,797 SHARES VALUE ($) - -------------------------------------------------------------------------- AIR FREIGHT & LOGISTICS - 0.5% UTI Worldwide, Inc. 13,962 1,053,573 ----------- Air Freight & Logistics Total 1,053,573 COMMERCIAL SERVICES & SUPPLIES - 5.1% Corporate Executive Board Co. 47,516 3,837,867 Huron Consulting Group, Inc. (a) 72,100 1,806,105 Kenexa Corp. (a) 107,925 1,467,780 LECG Corp. (a) 59,054 1,360,014 Resources Connection, Inc. (a) 83,966 2,435,014 ----------- Commercial Services & Supplies Total 10,906,780 CONSTRUCTION & ENGINEERING - 1.5% URS Corp. (a) 83,745 3,155,512 ----------- Construction & Engineering Total 3,155,512 ELECTRICAL EQUIPMENT - 0.4% Roper Industries, Inc. 25,820 994,586 ----------- Electrical Equipment Total 994,586 INDUSTRIAL CONGLOMERATES - 0.4% Raven Industries, Inc. 37,210 967,460 ----------- Industrial Conglomerates Total 967,460 MACHINERY - 5.2% ESCO Technologies, Inc. (a) 6,210 643,853 Joy Global, Inc. 62,523 2,988,599 RBC Bearings, Inc. (a) 35,000 563,500 Terex Corp. (a) 59,854 2,919,678 Wabtec Corp. 155,320 4,038,320 ----------- Machinery Total 11,153,950 MARINE - 0.3% Dryships, Inc. 46,910 749,622 ----------- Marine Total 749,622 ROAD & RAIL - 0.8% Landstar System, Inc. 46,720 1,696,870 ----------- Road & Rail Total 1,696,870 ----------- INDUSTRIALS TOTAL 36,226,150 INFORMATION TECHNOLOGY - 26.3% COMMUNICATIONS EQUIPMENT - 4.9% F5 Networks, Inc. (a) 55,935 2,309,556 Ixia (a) 150,392 2,701,040 Packeteer, Inc. (a) 166,520 1,968,267 SiRF Technology Holdings, Inc. (a) 140,270 3,562,858 ----------- Communications Equipment Total 10,541,721 COMPUTERS & PERIPHERALS - 1.4% Komag, Inc. (a) 42,067 1,403,355 Presstek, Inc. (a) 35,900 446,237 Stratasys, Inc. (a) 43,720 1,238,587 ----------- Computers & Peripherals Total 3,088,179 See Accompanying Notes to Financial Statements. | 61 ________________________________________________________________________________ AUGUST 31, 2005 COLUMBIA SMALL CAP GROWTH FUND I SHARES VALUE ($) - -------------------------------------------------------------------------- COMMON STOCKS - (CONTINUED) INFORMATION TECHNOLOGY - (CONTINUED) ELECTRONIC EQUIPMENT & INSTRUMENTS - 1.4% Benchmark Electronics, Inc. (a) 37,040 1,078,235 Dolby Laboratories, Inc., Class A (a) 27,010 432,160 Itron, Inc. (a) 13,390 619,555 Trimble Navigation Ltd. (a) 26,670 973,988 ----------- Electronic Equipment & Instruments Total 3,103,938 INTERNET SOFTWARE & SERVICES - 1.5% Digital River, Inc. (a) 32,980 1,252,580 Equinix, Inc. (a) 51,640 2,012,411 ----------- Internet Software & Services Total 3,264,991 IT SERVICES - 5.8% Anteon International Corp. (a) 66,760 3,067,622 CACI International, Inc., Class A (a) 50,820 3,183,365 Cognizant Technology Solutions Corp., Class A (a) 29,806 1,357,067 Euronet Worldwide, Inc. (a) 78,060 2,187,241 Global Payments, Inc. 38,606 2,539,503 ----------- IT Services Total 12,334,798 SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 6.4% ATMI, Inc. (a) 35,620 1,098,165 Cambridge Display Technology, Inc. (a) 63,896 502,861 Cypress Semiconductor Corp. (a) 86,000 1,344,180 FEI Co. (a) 49,900 1,044,407 FormFactor, Inc. (a) 82,410 2,239,080 Hittite Microwave Corp. (a) 91,200 1,870,694 Microsemi Corp. (a) 128,230 3,089,061 PortalPlayer, Inc. (a) 21,200 562,436 Trident Microsystems, Inc. (a) 54,800 1,924,576 ----------- Semiconductors & Semiconductor Equipment Total 13,675,460 SOFTWARE - 4.9% Embarcadero Technologies, Inc. (a) 297,014 1,761,293 Epicor Software Corp. (a) 143,030 1,908,020 Hyperion Solutions Corp. (a) 22,251 965,026 Informatica Corp. (a) 74,100 846,222 Micromuse, Inc. (a) 171,600 1,144,572 MICROS Systems, Inc. (a) 19,772 881,634 Parametric Technology Corp. (a) 258,850 1,568,631 SERENA Software, Inc. (a) 43,430 819,958 Wind River Systems, Inc. (a) 38,700 508,518 ----------- Software Total 10,403,874 ----------- INFORMATION TECHNOLOGY TOTAL 56,412,961 MATERIALS - 2.4% CHEMICALS - 1.5% Airgas, Inc. 31,274 879,738 OM Group, Inc. (a) 115,772 2,255,238 ----------- Chemicals Total 3,134,976 SHARES VALUE ($) - -------------------------------------------------------------------------- METALS & MINING - 0.9% Allegheny Technologies, Inc. 42,332 1,169,210 Century Aluminum Co. (a) 34,200 827,640 ----------- Metals & Mining Total 1,996,850 ----------- MATERIALS TOTAL 5,131,826 TELECOMMUNICATION SERVICES - 1.9% WIRELESS TELECOMMUNICATION SERVICES - 1.9% Dobson Communications Corp., Class A (a) 140,600 1,069,966 Millicom International Cellular SA (a) 85,384 1,640,227 SBA Communications Corp., Class A (a) 90,407 1,360,625 ----------- Wireless Telecommunication Services Total 4,070,818 ----------- TELECOMMUNICATION SERVICES TOTAL 4,070,818 Total Common Stocks (cost of $172,923,285) 210,409,313 SHORT-TERM OBLIGATION - 2.0% PAR ($) Repurchase agreement with State Street Bank & Trust Co., dated 08/31/05, due 09/01/05 at 3.430%, collateralized by a U.S. Treasury Bond maturing 08/15/13, market value of $4,454,219 (repurchase proceeds $4,362,416) 4,362,000 4,362,000 ----------- Total Short-Term Obligation (cost of $4,362,000) 4,362,000 TOTAL INVESTMENTS - 100.0% (COST OF $177,285,285) (b) 214,771,313 OTHER ASSETS & LIABILITIES, NET - (0.0)% (112,539) NET ASSETS - 100.0% 214,658,774 NOTES TO INVESTMENT PORTFOLIO: (a) Non-income producing security. (b) Cost for federal income tax purposes is $177,924,567. At August 31, 2005, the Fund held investments in the following sectors: % OF SECTOR (UNAUDITED) NET ASSETS ----------------------------------------------------- Information Technology 26.3% Health Care 22.3 Industrials 16.8 Consumer Discretionary 12.2 Energy 8.0 Financials 6.0 Materials 2.4 Consumer Staples 2.1 Telecommunications Services 1.9 Short-Term Obligation 2.0 Other Assets & Liabilities, Net (0.0) ----- 100.0% ===== ACRONYM NAME ------- ---- ADR American Depositary Receipt 62 | See Accompanying Notes to Financial Statements. INVESTMENT PORTFOLIO ___________________________________________________________ AUGUST 31, 2005 COLUMBIA REAL ESTATE EQUITY FUND SHARES VALUE ($) - -------------------------------------------------------------------------- COMMON STOCKS - 95.7% CONSUMER DISCRETIONARY - 15.0% HOTELS, RESTAURANTS & LEISURE - 15.0% Great Wolf Resorts, Inc. (a) 294,300 3,384,450 Hilton Hotels Corp. 2,321,900 53,798,423 Marriott International, Inc., Class A 485,300 30,675,813 Starwood Hotels & Resorts Worldwide, Inc. 625,900 36,489,970 ----------- Hotels, Restaurants & Leisure Total 124,348,656 ----------- CONSUMER DISCRETIONARY TOTAL 124,348,656 FINANCIALS - 80.7% REAL ESTATE - 80.7% Alexandria Real Estate Equities, Inc., REIT 542,700 44,474,265 Archstone-Smith Trust, REIT 440,671 17,759,041 AvalonBay Communities, Inc., REIT 179,000 15,043,160 Boston Properties, Inc., REIT 199,900 14,222,885 Brookfield Properties Corp. 292,700 8,485,373 CenterPoint Properties Trust, REIT 464,600 19,587,536 Corporate Office Properties Trust, REIT 371,180 12,931,911 Cousins Properties, Inc., REIT 1,108,050 33,584,996 Duke Realty Corp., REIT 438,800 14,366,312 Equity Office Properties Trust, REIT 891,737 29,694,842 Equity Residential, REIT 796,606 30,087,809 Essex Property Trust, Inc., REIT 77,000 6,772,150 General Growth Properties, Inc., REIT 675,380 30,452,884 Home Properties, Inc., REIT 175,200 7,184,952 Host Marriott Corp., REIT 1,965,300 34,373,097 iStar Financial, Inc., REIT 1,117,250 46,332,357 Kimco Realty Corp., REIT 1,125,000 35,572,500 Liberty Property Trust, REIT 439,500 19,074,300 Mack-Cali Realty Corp., REIT 365,900 16,117,895 Mills Corp., REIT 150,800 8,827,832 Newcastle Investment Corp., REIT 274,500 8,095,005 Pan Pacific Retail Properties, Inc., REIT 251,700 16,680,159 Prentiss Properties Trust, REIT 219,500 8,437,580 ProLogis, REIT 620,906 27,015,620 Public Storage, Inc., REIT 525,732 35,497,425 Regency Centers Corp., REIT 510,900 29,800,797 Simon Property Group, Inc., REIT 624,756 47,525,189 SL Green Realty Corp., REIT 224,900 14,872,637 St. Joe Co. 59,600 4,482,516 Sun Communities, Inc., REIT 114,700 3,888,330 United Dominion Realty Trust, Inc., REIT 351,100 8,314,048 Vornado Realty Trust, REIT 206,200 17,737,324 ----------- Real Estate Total 667,292,727 ----------- FINANCIALS TOTAL 667,292,727 Total Common Stocks (cost of $438,170,752) 791,641,383 SHARES VALUE ($) - -------------------------------------------------------------------------- INCOME DEPOSIT SECURITIES - 1.6% CONSUMER DISCRETIONARY - 0.3% HOTELS, RESTAURANTS & LEISURE - 0.3% Centerplate, Inc. 201,300 2,415,600 ----------- Hotels, Restaurants & Leisure Total 2,415,600 ----------- CONSUMER DISCRETIONARY TOTAL 2,415,600 CONSUMER STAPLES - 0.7% FOOD & STAPLES RETAILING - 0.7% B&G Foods, Inc. 476,200 6,166,790 ----------- Food & Staples Retailing Total 6,166,790 ----------- CONSUMER STAPLES TOTAL 6,166,790 TELECOMMUNICATION SERVICES - 0.6% DIVERSIFIED TELECOMMUNICATION SERVICES - 0.6% Otelco, Inc. 302,000 4,711,200 ----------- Diversified Telecommunication Services Total 4,711,200 ----------- TELECOMMUNICATION SERVICES TOTAL 4,711,200 Total Income Deposit Securities (cost of $14,752,900) 13,293,590 SHORT-TERM OBLIGATION - 2.8% PAR ($) Repurchase agreement with State Street Bank & Trust Co., dated 08/31/05, due 09/01/05 at 3.430%, collateralized by U.S. Treasury Notes with various maturities to 05/31/06, market value of $23,994,294 (repurchase proceeds $23,522,241) 23,520,000 23,520,000 ----------- Total Short-Term Obligation (cost of $23,520,000) 23,520,000 TOTAL INVESTMENTS - 100.1% (COST OF $476,443,652) (b) 828,454,973 OTHER ASSETS & LIABILITIES, NET - (0.1)% (1,074,553) NET ASSETS - 100.0% 827,380,420 See Accompanying Notes to Financial Statements. | 63 ________________________________________________________________________________ AUGUST 31, 2005 COLUMBIA REAL ESTATE EQUITY FUND - --------------------------------------------------------------------------- NOTES TO INVESTMENT PORTFOLIO: (a) Non-income producing security. (b) Cost for federal income tax purposes is $477,101,599. At August 31, 2005, the Fund held investments in the following sectors: % OF SECTOR (UNAUDITED) NET ASSETS ---------------------------------------------------- Financials 80.7% Consumer Discretionary 15.3 Consumer Staples 0.7 Telecommunication Services 0.6 Short-Term Obligation 2.8 Other Assets & Liabilities, Net (0.1) ----- 100.0% ===== ACRONYM NAME ------- ---- REIT Real Estate Investment Trust 64 | See Accompanying Notes to Financial Statements. INVESTMENT PORTFOLIO ___________________________________________________________ AUGUST 31, 2005 COLUMBIA TECHNOLOGY FUND SHARES VALUE ($) - -------------------------------------------------------------------------- COMMON STOCKS - 98.9% CONSUMER DISCRETIONARY - 5.8% HOTELS, RESTAURANTS & LEISURE - 0.6% Sportingbet PLC (a) 53,000 335,819 ----------- Hotels, Restaurants & Leisure Total 335,819 INTERNET & CATALOG RETAIL - 2.7% eBay, Inc. (a) 19,200 777,408 Netflix, Inc. (a) 10,780 232,417 Overstock.com, Inc. (a) 8,400 338,856 Provide Commerce, Inc. (a) 11,164 284,905 ----------- Internet & Catalog Retail Total 1,633,586 LEISURE EQUIPMENT & PRODUCTS - 0.5% Marvel Enterprises, Inc. (a) 15,830 304,727 ----------- Leisure Equipment & Products Total 304,727 MEDIA - 2.0% XM Satellite Radio Holdings, Inc., Class A (a) 35,380 1,247,145 ----------- Media Total 1,247,145 ----------- CONSUMER DISCRETIONARY TOTAL 3,521,277 HEALTH CARE - 3.4% BIOTECHNOLOGY - 0.9% Panacos Pharmaceuticals, Inc. (a) 39,400 360,510 Rigel Pharmaceuticals, Inc. (a) 8,750 176,137 ----------- Biotechnology Total 536,647 HEALTH CARE EQUIPMENT & SUPPLIES - 1.2% Gen-Probe, Inc. (a) 9,170 417,418 Kensey Nash Corp. (a) 10,420 315,726 ----------- Health Care Equipment & Supplies Total 733,144 PHARMACEUTICALS - 1.3% Adams Respiratory Therapeutics, Inc. (a) 3,400 115,056 NitroMed, Inc. (a) 10,070 189,920 Salix Pharmaceuticals Ltd. (a) 23,930 487,694 ----------- Pharmaceuticals Total 792,670 ----------- HEALTH CARE TOTAL 2,062,461 INDUSTRIALS - 0.9% COMMERCIAL SERVICES & SUPPLIES - 0.9% Huron Consulting Group, Inc. (a) 11,670 292,333 Kenexa Corp. (a) 20,840 283,424 ----------- Commercial Services & Supplies Total 575,757 ----------- INDUSTRIALS TOTAL 575,757 SHARES VALUE ($) - -------------------------------------------------------------------------- INFORMATION TECHNOLOGY - 71.1% COMMUNICATIONS EQUIPMENT - 8.3% Cisco Systems, Inc. (a) 42,500 748,850 Comverse Technology, Inc. (a) 26,340 679,045 Corning, Inc. (a) 16,200 323,352 F5 Networks, Inc. (a) 11,300 466,577 Harris Corp. 11,350 438,224 Lucent Technologies, Inc. (a) 96,500 297,220 QUALCOMM, Inc. 7,900 313,709 SiRF Technology Holdings, Inc. (a) 70,885 1,800,479 ----------- Communications Equipment Total 5,067,456 COMPUTERS & PERIPHERALS - 6.2% Apple Computer, Inc. (a) 18,790 881,815 EMC Corp. (a) 30,850 396,731 Hutchinson Technology, Inc. (a) 70 1,848 Komag, Inc. (a) 25,687 856,918 Palm, Inc. (a) 4,400 150,392 Rackable Systems, Inc. (a) 13,250 169,600 SanDisk Corp. (a) 33,940 1,317,890 ----------- Computers & Peripherals Total 3,775,194 ELECTRONIC EQUIPMENT & INSTRUMENTS - 0.4% Trimble Navigation Ltd. (a) 7,330 267,692 ----------- Electronic Equipment & Instruments Total 267,692 INTERNET SOFTWARE & SERVICES - 8.6% Google, Inc., Class A (a) 7,210 2,062,060 HouseValues, Inc. (a) 83,379 1,087,262 Sify Ltd., ADR (a) 22,399 113,787 VeriSign, Inc. (a) 19,920 434,256 Yahoo!, Inc. (a) 45,310 1,510,635 ----------- Internet Software & Services Total 5,208,000 IT SERVICES - 7.7% Affiliated Computer Services, Inc., Class A (a) 5,420 281,569 Alliance Data Systems Corp. (a) 7,290 306,690 Cognizant Technology Solutions Corp., Class A (a) 25,490 1,160,560 Computer Sciences Corp. (a) 6,560 292,248 DST Systems, Inc. (a) 10,100 542,370 Euronet Worldwide, Inc. (a) 8,650 242,373 First Data Corp. 13,770 572,144 Global Payments, Inc. 7,690 505,848 Infosys Technologies Ltd., ADR 8,710 616,581 Paychex, Inc. 4,470 152,561 ----------- IT Services Total 4,672,944 SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 24.8% Advanced Micro Devices, Inc. (a)(b) 9,900 205,623 ATI Technologies, Inc. (a) 37,500 456,750 ATMI, Inc. (a) 6,910 213,035 Broadcom Corp., Class A (a) 47,385 2,061,247 Cypress Semiconductor Corp. (a) 30,800 481,404 See Accompanying Notes to Financial Statements. | 65 ________________________________________________________________________________ AUGUST 31, 2005 COLUMBIA TECHNOLOGY FUND SHARES VALUE ($) - -------------------------------------------------------------------------- COMMON STOCKS - (CONTINUED) INFORMATION TECHNOLOGY - (CONTINUED) SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - (CONTINUED) FEI Co. (a) 34,400 719,992 FormFactor, Inc. (a) 18,421 500,499 Freescale Semiconductor, Inc. (a) 19,500 465,660 Hittite Microwave Corp. (a) 58,100 1,191,747 Intersil Corp., Class A 15,200 319,200 Marvell Technology Group Ltd. (a) 52,680 2,485,969 Maxim Integrated Products, Inc. 11,400 486,210 MEMC Electronic Materials, Inc. (a) 70,084 1,181,616 Microchip Technology, Inc. 9,500 295,640 Microsemi Corp. (a) 10,380 250,054 Netlogic Microsystems, Inc. (a) 11,600 239,772 NVIDIA Corp. (a) 20,700 635,076 Samsung Electronics Co., Ltd., GDR (c) 3,670 962,458 Silicon Laboratories, Inc. (a) 19,900 617,497 Silicon Storage Technology, Inc. (a) 60,200 292,572 Trident Microsystems, Inc. (a) 23,390 821,457 ZiLOG, Inc. (a) 77,081 199,640 ----------- Semiconductors & Semiconductor Equipment Total 15,083,118 SOFTWARE - 15.1% Agile Software Corp. (a) 10 66 Amdocs Ltd. (a) 20,620 605,197 Business Objects SA, ADR (a) 11,450 381,743 Check Point Software Technologies Ltd. (a) 28,320 638,899 Citrix Systems, Inc. (a) 20,620 490,756 Cognos, Inc. (a) 10,390 375,183 Computer Associates International, Inc. 16,400 442,144 Electronic Arts, Inc. (a) 5,790 331,651 Embarcadero Technologies, Inc. (a) 48,660 288,554 Macromedia, Inc. (a) 11,450 423,078 McAfee, Inc. (a) 22,720 696,368 Mercury Interactive Corp. (a) 12,920 473,776 MICROS Systems, Inc. (a) 5,036 224,555 NAVTEQ (a) 14,170 659,472 Oracle Corp. (a) 51,870 672,754 Parametric Technology Corp. (a) 44,180 267,731 SAP AG, ADR 16,150 689,121 Symantec Corp. (a) 35,754 750,119 Synopsys, Inc. (a) 22,610 429,590 TIBCO Software, Inc. (a) 42,100 321,644 ----------- Software Total 9,162,401 ----------- INFORMATION TECHNOLOGY TOTAL 43,236,805 TELECOMMUNICATION SERVICES - 17.7% DIVERSIFIED TELECOMMUNICATION SERVICES - 1.8% ALLTEL Corp. 8,860 549,232 Consolidated Communications Holdings, Inc. (a) 39,800 549,240 ----------- Diversified Telecommunication Services Total 1,098,472 SHARES VALUE ($) - -------------------------------------------------------------------------- WIRELESS TELECOMMUNICATION SERVICES - 15.9% American Tower Corp., Class A 57,153 1,362,527 Crown Castle International Corp. (a) 54,980 1,361,305 Dobson Communications Corp., Class A (a) 198,970 1,514,162 iPCS, Inc. (a) 14,100 590,790 Leap Wireless International, Inc. (a) 22,500 768,600 Millicom International Cellular SA (a) 56,500 1,085,365 Mobile TeleSystems, ADR 17,810 658,970 NII Holdings, Inc. (a) 10,000 762,200 SBA Communications Corp., Class A (a) 59,070 889,003 VimpelCom, ADR (a) 16,820 693,489 ----------- Wireless Telecommunication Services Total 9,686,411 ----------- TELECOMMUNICATION SERVICES TOTAL 10,784,883 Total Common Stocks (cost of $49,799,901) 60,181,183 SHORT-TERM OBLIGATION - 1.6% PAR ($) Repurchase agreement with State Street Bank & Trust Co., dated 08/31/05, due 09/01/05 at 3.430%, collateralized by a U.S. Treasury Note maturing 09/30/06, market value of $970,869 (repurchase proceeds $948,090) 948,000 948,000 ----------- Total Short-Term Obligation (cost of $948,000) 948,000 TOTAL INVESTMENTS - 100.5% (COST OF $50,747,901) (d) 61,129,183 OTHER ASSETS & LIABILITIES, NET - (0.5)% (308,597) NET ASSETS - 100.0% 60,820,586 NOTES TO INVESTMENT PORTFOLIO: (a) Non-income producing security. (b) Security pledged as collateral for written option contracts. (c) Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. This security may be resold in transactions exempt from registration, normally to qualified institutional buyers. At August 31, 2005, the value of this security, which is not illiquid, represents 1.6% of net assets. (d) Cost for federal income tax purposes is $50,998,183. 66 | See Accompanying Notes to Financial Statements. ________________________________________________________________________________ AUGUST 31, 2005 COLUMBIA TECHNOLOGY FUND NOTES TO INVESTMENT PORTFOLIO (CONTINUED): At August 31, 2005, the Fund held investments in the following sectors: % OF SECTOR (UNAUDITED) NET ASSETS ----------------------------------------------------- Information Technology 71.1% Telecommunication Services 17.7 Consumer Discretionary 5.8 Health Care 3.4 Industrials 0.9 Short-Term Obligation 1.6 Other Assets & Liabilities, Net (0.5) ----- 100.0% ===== At August 31, 2005, the Fund held the following written option contract: NUMBER OF TYPE CONTRACTS PREMIUM VALUE ---------------------------------------------------- Call - Advanced Micro Devices, Inc. Strike Price $20.00 Expires 10/22/05 40 $3,680 $6,600 == ====== ====== ACRONYM NAME ------- ---- ADR American Depositary Receipt GDR Global Depositary Receipt See Accompanying Notes to Financial Statements. | 67 INVESTMENT PORTFOLIO ___________________________________________________________ AUGUST 31, 2005 COLUMBIA STRATEGIC INVESTOR FUND SHARES VALUE ($) - -------------------------------------------------------------------------- COMMON STOCKS - 72.9% CONSUMER DISCRETIONARY - 8.9% AUTO COMPONENTS - 1.4% Modine Manufacturing Co. 50,000 1,758,000 Nokian Renkaat Oyj 266,000 5,661,456 Proliance International, Inc. (a) 11,784 66,815 ----------- Auto Components Total 7,486,271 AUTOMOBILES - 0.1% Brilliance China Automotive Holdings Ltd., ADR 40,000 676,800 ----------- Automobiles Total 676,800 DIVERSIFIED CONSUMER SERVICES - 0.5% Career Education Corp. (a) 40,000 1,568,000 Weight Watchers International, Inc. (a) 20,000 1,132,200 ----------- Diversified Consumer Services Total 2,700,200 HOTELS, RESTAURANTS & LEISURE - 0.2% Fairmont Hotels & Resorts, Inc. 40,000 1,255,200 ----------- Hotels, Restaurants & Leisure Total 1,255,200 HOUSEHOLD DURABLES - 1.5% Cavco Industries, Inc. (a) 26,000 871,780 Makita Corp., ADR 62,000 1,228,840 Matsushita Electric Industrial Co., Ltd., ADR 100,000 1,754,000 Maytag Corp. 75,000 1,417,500 Snap-On, Inc. 50,000 1,775,000 Sony Corp., ADR 30,000 1,008,600 ----------- Household Durables Total 8,055,720 INTERNET & CATALOG RETAIL - 0.3% Expedia, Inc. (a) 28,750 639,975 IAC/InterActiveCorp (a) 28,750 705,812 ----------- Internet & Catalog Retail Total 1,345,787 LEISURE EQUIPMENT & PRODUCTS - 0.2% Amer Sports Oyj 41,000 751,150 ----------- Leisure Equipment & Products Total 751,150 MEDIA - 2.4% Comcast Corp., Class A (a) 72,500 2,188,050 Discovery Holding Co., Class A (a) 12,500 189,250 Entravision Communications Corp., Class A (a) 75,000 610,500 Liberty Global, Inc., Class A (a) 10,000 507,500 Liberty Media Corp., Class A (a) 100,000 831,000 McGraw-Hill Companies, Inc. 20,000 964,400 Media General, Inc., Class A 30,000 1,973,700 News Corp., Class A 75,000 1,215,750 Time Warner, Inc. 132,500 2,374,400 Tribune Co. 40,000 1,502,800 ----------- Media Total 12,357,350 SHARES VALUE ($) - -------------------------------------------------------------------------- MULTILINE RETAIL - 1.6% Federated Department Stores, Inc. 19,469 1,342,955 Fred's, Inc. 20,000 280,200 Kohl's Corp. (a) 42,500 2,229,125 Saks, Inc. (a) 75,000 1,628,250 Stockmann Oyj Abp, Class B 75,000 3,082,678 ----------- Multiline Retail Total 8,563,208 SPECIALTY RETAIL - 0.7% Blockbuster, Inc., Class A 100,000 657,000 CarMax, Inc. (a) 30,000 955,800 Kirkland's, Inc. (a) 25,050 234,217 Restoration Hardware, Inc. (a) 100,000 714,000 Tiffany & Co. 10,000 374,200 West Marine, Inc. (a) 40,000 744,800 ----------- Specialty Retail Total 3,680,017 ----------- CONSUMER DISCRETIONARY TOTAL 46,871,703 CONSUMER STAPLES - 6.1% BEVERAGES - 1.0% Coca-Cola Co. 75,000 3,300,000 Coca-Cola Femsa, SA de CV, ADR 57,500 1,552,500 Constellation Brands, Inc., Class A (a) 20,000 550,400 ----------- Beverages Total 5,402,900 FOOD & STAPLES RETAILING - 1.3% Kroger Co. (a) 60,000 1,184,400 United Natural Foods, Inc. (a) 40,000 1,360,000 Wal-Mart Stores, Inc. 32,500 1,461,200 Walgreen Co. 62,500 2,895,625 ----------- Food & Staples Retailing Total 6,901,225 FOOD PRODUCTS - 2.0% Campbell Soup Co. 30,000 882,000 Delta & Pine Land Co. 50,000 1,281,500 General Mills, Inc. 32,500 1,498,900 Hain Celestial Group, Inc. (a) 40,000 754,800 Nestle SA, Registered Shares 9,750 2,739,829 Unilever NV, NY Registered Shares 47,500 3,287,000 ----------- Food Products Total 10,444,029 HOUSEHOLD PRODUCTS - 0.2% Kimberly-Clark Corp. 20,000 1,246,400 ----------- Household Products Total 1,246,400 PERSONAL PRODUCTS - 0.7% Avon Products, Inc. 20,000 656,400 Natura Cosmeticos SA 52,500 1,781,926 NBTY, Inc. (a) 50,000 1,094,500 ----------- Personal Products Total 3,532,826 TOBACCO - 0.9% Altria Group, Inc. 62,500 4,418,750 ----------- Tobacco Total 4,418,750 ----------- CONSUMER STAPLES TOTAL 31,946,130 68 | See Accompanying Notes to Financial Statements. ________________________________________________________________________________ AUGUST 31, 2005 COLUMBIA STRATEGIC INVESTOR FUND SHARES VALUE ($) - -------------------------------------------------------------------------- COMMON STOCKS - (CONTINUED) ENERGY - 8.5% ENERGY EQUIPMENT & SERVICES - 4.3% Core Laboratories NV (a) 30,000 954,900 GlobalSantaFe Corp. 30,000 1,406,400 Input/Output, Inc. (a) 125,000 1,080,000 National-Oilwell Varco, Inc. (a) 50,000 3,210,500 Schlumberger Ltd. 57,500 4,958,225 Stolt Offshore SA, ADR (a) 50,000 637,500 Tesco Corp. (a) 50,000 666,302 TGS Nopec Geophysical Co., ASA (a) 75,000 3,186,411 Transocean, Inc. (a) 75,000 4,428,000 Willbros Group, Inc. (a) 125,000 2,160,000 ----------- Energy Equipment & Services Total 22,688,238 OIL, GAS & CONSUMABLE FUELS - 4.2% Alpha Natural Resources, Inc. (a) 35,000 1,044,050 Apache Corp. 20,000 1,432,400 BP PLC, ADR 32,500 2,222,350 ConocoPhillips 50,000 3,297,000 Exxon Mobil Corp. 62,500 3,743,750 McMoRan Exploration Co. (a) 102,500 1,843,975 Newfield Exploration Co. (a) 82,500 3,895,650 Petroleo Brasileiro SA, ADR 20,000 1,251,200 Plains Exploration & Production Co. (a) 40,000 1,482,000 Royal Dutch Shell PLC, Class A, ADR 30,000 1,948,800 ----------- Oil, Gas & Consumable Fuels Total 22,161,175 ----------- ENERGY TOTAL 44,849,413 FINANCIALS - 10.8% CAPITAL MARKETS - 1.9% Bank of New York Co., Inc. 30,000 917,100 Charles Schwab Corp. 97,500 1,319,175 Janus Capital Group, Inc. 50,000 706,500 Lazard Ltd., Class A 60,000 1,525,200 Morgan Stanley 67,500 3,433,725 Nikko Cordial Corp. (b) 80,000 393,259 Nomura Holdings, Inc., ADR 100,000 1,376,000 Piper Jaffray Companies, Inc. (a) 10,000 304,900 ----------- Capital Markets Total 9,975,859 COMMERCIAL BANKS - 3.0% Allied Irish Banks PLC, ADR 30,000 1,303,500 HSBC Holdings PLC, ADR 37,500 3,031,500 ICICI Bank Ltd., ADR 20,000 467,600 Mitsubishi Tokyo Financial Group, Inc., ADR 275,000 2,846,250 Mizuho Financial Group, Inc. 500 2,795,438 SunTrust Banks, Inc. 22,500 1,581,300 U.S. Bancorp 75,000 2,191,500 Zions Bancorporation 20,000 1,397,200 ----------- Commercial Banks Total 15,614,288 CONSUMER FINANCE - 0.2% MBNA Corp. 40,000 1,008,000 ----------- Consumer Finance Total 1,008,000 SHARES VALUE ($) - -------------------------------------------------------------------------- DIVERSIFIED FINANCIAL SERVICES - 1.6% Asset Acceptance Capital Corp. (a) 47,500 1,371,325 Citigroup, Inc. 75,000 3,282,750 JPMorgan Chase & Co. 120,200 4,073,578 ----------- Diversified Financial Services Total 8,727,653 INSURANCE - 3.0% American International Group, Inc. 50,000 2,960,000 Arthur J. Gallagher & Co. 47,500 1,356,600 Axis Capital Holdings Ltd. 20,000 565,000 Chubb Corp. 10,000 869,600 Hannover Rueckversicherung AG, Registered Shares 67,500 2,431,869 Jefferson-Pilot Corp. 20,000 994,600 Marsh & McLennan Companies, Inc. 40,000 1,122,000 PartnerRe Ltd. 6,234 378,404 St. Paul Travelers Companies, Inc. 50,005 2,150,715 UnumProvident Corp. 20,000 386,400 Wesco Financial Corp. 7,750 2,739,625 ----------- Insurance Total 15,954,813 ----------- REAL ESTATE - 0.5% Mitsubishi Estate Co., Ltd. 125,000 1,497,773 Post Properties, Inc., REIT 30,000 1,113,000 ----------- Real Estate Total 2,610,773 THRIFTS & MORTGAGE FINANCE - 0.6% Fannie Mae 20,000 1,020,800 Freddie Mac 32,500 1,962,350 ----------- Thrifts & Mortgage Finance Total 2,983,150 ----------- FINANCIALS TOTAL 56,874,536 HEALTH CARE - 12.1% BIOTECHNOLOGY - 2.0% Abgenix, Inc. (a) 82,500 906,675 Amgen, Inc. (a) 27,500 2,197,250 Applera Corp.-Applied Biosystems Group 75,000 1,612,500 Biogen Idec, Inc. (a) 47,500 2,002,125 Chiron Corp. (a) 30,000 1,093,200 Millennium Pharmaceuticals, Inc. (a) 75,000 750,750 Pharmion Corp. (a) 20,000 497,000 Qiagen NV (a) 100,000 1,262,000 ----------- Biotechnology Total 10,321,500 HEALTH CARE EQUIPMENT & SUPPLIES - 2.9% Baxter International, Inc. 87,500 3,528,875 Boston Scientific Corp. (a) 30,000 806,400 Cytyc Corp. (a) 40,000 998,000 Haemonetics Corp. (a) 30,000 1,333,200 Hospira, Inc. (a) 97,500 3,884,400 Medtronic, Inc. 50,000 2,850,000 STERIS Corp. 30,000 748,200 Viasys Healthcare, Inc. (a) 50,000 1,346,500 ----------- Health Care Equipment & Supplies Total 15,495,575 See Accompanying Notes to Financial Statements. | 69 ________________________________________________________________________________ AUGUST 31, 2005 COLUMBIA STRATEGIC INVESTOR FUND SHARES VALUE ($) - -------------------------------------------------------------------------- COMMON STOCKS - (CONTINUED) HEALTH CARE - (CONTINUED) HEALTH CARE PROVIDERS & SERVICES - 2.9% Cardinal Health, Inc. 10,000 596,100 Community Health Systems, Inc. (a) 50,000 1,841,500 Health Management Associates, Inc., Class A 30,000 729,600 HEALTHSOUTH Corp. (a) 100,000 530,000 Henry Schein, Inc. (a) 40,000 1,667,600 LifePoint Hospitals, Inc. (a) 20,000 909,600 McKesson Corp. 56,000 2,613,520 Medco Health Solutions, Inc. (a) 11,049 544,388 Omnicare, Inc. 67,500 3,547,125 Quest Diagnostics, Inc. 25,000 1,249,500 Tenet Healthcare Corp. (a) 102,500 1,248,450 ----------- Health Care Providers & Services Total 15,477,383 PHARMACEUTICALS - 4.3% Abbott Laboratories 40,000 1,805,200 Andrx Corp. (a) 75,000 1,359,750 Dr. Reddy's Laboratories Ltd., ADR 50,000 908,500 Elan Corp. PLC, ADR (a) 100,000 891,000 Eli Lilly & Co. 30,000 1,650,600 Gedeon Richter Ltd. 12,500 1,997,214 Merck & Co., Inc. 57,500 1,623,225 Novartis AG, ADR 30,000 1,462,500 Pfizer, Inc. 75,700 1,928,079 Schering-Plough Corp. 100,000 2,141,000 Shire Pharmaceuticals Group PLC, ADR 20,000 762,400 Taro Pharmaceuticals Industries Ltd. (a) 30,000 818,400 Valeant Pharmaceuticals International 100,000 1,998,000 Watson Pharmaceuticals, Inc. (a) 62,500 2,155,000 Wyeth 20,000 915,800 ----------- Pharmaceuticals Total 22,416,668 ----------- HEALTH CARE TOTAL 63,711,126 INDUSTRIALS - 8.9% AEROSPACE & DEFENSE - 0.2% Raytheon Co. 30,000 1,176,600 ----------- Aerospace & Defense Total 1,176,600 AIR FREIGHT & LOGISTICS - 0.8% United Parcel Service, Inc., Class B 37,500 2,658,375 Yamato Transport Co., Ltd. 100,000 1,511,853 ----------- Air Freight & Logistics Total 4,170,228 AIRLINES - 0.4% AMR Corp. (a) 75,000 944,250 Southwest Airlines Co. 75,000 999,000 ----------- Airlines Total 1,943,250 COMMERCIAL SERVICES & SUPPLIES - 1.6% Administaff, Inc. 50,000 1,798,500 Avery Dennison Corp. 57,500 3,072,800 Cendant Corp. 60,000 1,220,400 Central Parking Corp. 10,000 158,900 R.R. Donnelley & Sons Co. 62,500 2,335,000 ----------- Commercial Services & Supplies Total 8,585,600 SHARES VALUE ($) - -------------------------------------------------------------------------- CONSTRUCTION & ENGINEERING - 0.6% Foster Wheeler Ltd. (a) 82,500 2,219,250 Insituform Technologies, Inc., Class A (a) 50,000 1,035,000 ----------- Construction & Engineering Total 3,254,250 ELECTRICAL EQUIPMENT - 0.8% ABB Ltd. (a) 75,000 544,165 ABB Ltd., ADR (a) 100,000 729,000 Thomas & Betts Corp. (a) 90,000 3,198,600 ----------- Electrical Equipment Total 4,471,765 INDUSTRIAL CONGLOMERATES - 1.0% 3M Co. 25,000 1,778,750 General Electric Co. 60,000 2,016,600 Siemens AG, ADR 17,500 1,338,750 ----------- Industrial Conglomerates Total 5,134,100 MACHINERY - 2.4% AGCO Corp. (a) 30,000 615,900 Bucyrus International, Inc., Class A 11,000 496,320 Caterpillar, Inc. 60,000 3,329,400 Deere & Co. 25,000 1,634,500 Eaton Corp. 37,500 2,397,000 Hitachi Construction Machinery Co., Ltd. 100,000 1,547,769 OSG Corp. 55,000 748,271 Pall Corp. 50,000 1,430,000 Timken Co. 20,000 587,400 ----------- Machinery Total 12,786,560 MARINE - 0.6% A.P. Moller-Maersk A/S 140 1,514,589 Finnlines Oyj 80,000 1,420,706 ----------- Marine Total 2,935,295 TRADING COMPANIES & DISTRIBUTORS - 0.5% GATX Corp. 62,500 2,533,125 ----------- Trading Companies & Distributors Total 2,533,125 ----------- INDUSTRIALS TOTAL 46,990,773 INFORMATION TECHNOLOGY - 8.6% COMMUNICATIONS EQUIPMENT - 2.1% Andrew Corp. (a) 82,500 951,225 Cisco Systems, Inc. (a) 137,500 2,422,750 Comverse Technology, Inc. (a) 40,000 1,031,200 Corning, Inc. (a) 67,500 1,347,300 Nokia Oyj, ADR 100,000 1,577,000 Plantronics, Inc. 57,500 1,874,500 Tandberg ASA 130,000 1,594,234 ----------- Communications Equipment Total 10,798,209 COMPUTERS & PERIPHERALS - 1.0% Electronics for Imaging, Inc. (a) 72,500 1,435,500 Hewlett-Packard Co. 75,000 2,082,000 International Business Machines Corp. 20,000 1,612,400 Sun Microsystems, Inc. (a) 50,000 190,000 ----------- Computers & Peripherals Total 5,319,900 70 | See Accompanying Notes to Financial Statements. ________________________________________________________________________________ AUGUST 31, 2005 COLUMBIA STRATEGIC INVESTOR FUND SHARES VALUE ($) - -------------------------------------------------------------------------- COMMON STOCKS - (CONTINUED) INFORMATION TECHNOLOGY - (CONTINUED) ELECTRONIC EQUIPMENT & INSTRUMENTS - 0.4% Celestica, Inc. (a) 40,000 477,200 Murata Manufacturing Co., Ltd. 15,000 789,441 Solectron Corp. (a) 100,000 410,000 Symbol Technologies, Inc. 31,854 292,420 ----------- Electronic Equipment & Instruments Total 1,969,061 INTERNET SOFTWARE & SERVICES - 0.1% United Online, Inc. 50,000 651,500 ----------- Internet Software & Services Total 651,500 IT SERVICES - 0.9% DST Systems, Inc. (a) 47,500 2,550,750 First Data Corp. 49,250 2,046,337 ----------- IT Services Total 4,597,087 SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 2.4% Advanced Micro Devices, Inc. (a) 30,000 623,100 FEI Co. (a) 50,000 1,046,500 Intel Corp. 60,000 1,543,200 Leadis Technology, Inc. (a) 50,000 358,000 LSI Logic Corp. (a) 75,000 723,000 Micron Technology, Inc. (a) 75,000 893,250 National Semiconductor Corp. 10,000 249,300 Novellus Systems, Inc. (a) 30,000 804,300 Samsung Electronics Co., Ltd., GDR (c) 15,000 3,933,750 Texas Instruments, Inc. 67,500 2,205,900 United Microelectronics Corp. 149,293 509,088 ----------- Semiconductors & Semiconductor Equipment Total 12,889,388 SOFTWARE - 1.7% Cadence Design Systems, Inc. (a) 50,000 800,500 Check Point Software Technologies Ltd. (a) 57,500 1,297,200 Microsoft Corp. 112,500 3,082,500 Novell, Inc. (a) 100,000 658,000 Opsware, Inc. (a) 50,000 231,000 Parametric Technology Corp. (a) 100,000 606,000 Quest Software, Inc. (a) 60,000 813,600 Symantec Corp. (a) 67,500 1,416,150 ----------- Software Total 8,904,950 ----------- INFORMATION TECHNOLOGY TOTAL 45,130,095 MATERIALS - 4.2% CHEMICALS - 2.2% Air Products & Chemicals, Inc. 27,500 1,523,500 Calgon Carbon Corp. 100,000 795,000 Dow Chemical Co. 20,000 864,000 Ferro Corp. 60,000 1,138,800 International Flavors & Fragrances, Inc. 30,000 1,083,000 Mosaic Co. (a) 40,000 646,000 Potash Corp. of Saskatchewan, Inc. 50,000 5,503,500 ----------- Chemicals Total 11,553,800 CONSTRUCTION MATERIALS - 0.3% Martin Marietta Materials, Inc. 22,500 1,627,200 ----------- Construction Materials Total 1,627,200 SHARES VALUE ($) - -------------------------------------------------------------------------- CONTAINERS & PACKAGING - 0.3% Sealed Air Corp. (a) 20,000 1,015,000 Smurfit-Stone Container Corp. (a) 40,000 441,600 ----------- Containers & Packaging Total 1,456,600 METALS & MINING - 1.0% Centerra Gold, Inc. (a) 75,000 1,274,728 Companhia Vale do Rio Doce, ADR 75,000 2,579,250 Gammon Lake Resources, Inc. (a) 50,000 375,500 Newmont Mining Corp. 30,000 1,187,400 ----------- Metals & Mining Total 5,416,878 PAPER & FOREST PRODUCTS - 0.4% International Paper Co. 30,000 925,500 Votorantim Celulose e Papel SA, ADR 100,000 1,160,000 ----------- Paper & Forest Products Total 2,085,500 ----------- MATERIALS TOTAL 22,139,978 TELECOMMUNICATION SERVICES - 1.5% DIVERSIFIED TELECOMMUNICATION SERVICES - 1.0% BellSouth Corp. 40,000 1,051,600 Cincinnati Bell, Inc. (a) 50,000 216,500 SBC Communications, Inc. 42,500 1,023,400 Telekomunikasi Indonesia, ADR 70,000 1,344,000 Verizon Communications, Inc. 47,500 1,553,725 ----------- Diversified Telecommunication Services Total 5,189,225 WIRELESS TELECOMMUNICATION SERVICES - 0.5% Nextel Partners, Inc., Class A (a) 30,000 787,200 Telemig Celular Participacoes SA 40,000 1,262,000 VimpelCom, ADR (a) 10,000 412,300 ----------- Wireless Telecommunication Services Total 2,461,500 ----------- TELECOMMUNICATION SERVICES TOTAL 7,650,725 UTILITIES - 3.3% ELECTRIC UTILITIES - 1.4% Edison International 75,000 3,377,250 Entergy Corp. 20,000 1,498,200 Exelon Corp. 30,000 1,616,700 Westar Energy, Inc. 30,000 720,600 ----------- Electric Utilities Total 7,212,750 GAS UTILITIES - 0.3% ONEOK, Inc. 37,500 1,275,000 ----------- Gas Utilities Total 1,275,000 INDEPENDENT POWER PRODUCERS & ENERGY TRADERS - 0.3% Duke Energy Corp. 40,000 1,159,600 Dynegy, Inc., Class A (a) 117,500 512,300 ----------- Independent Power Producers & Energy Traders Total 1,671,900 MULTI-UTILITIES - 1.1% Dominion Resources, Inc. 30,000 2,294,400 NiSource, Inc. 75,000 1,810,500 TECO Energy, Inc. 100,000 1,741,000 ----------- Multi-Utilities Total 5,845,900 See Accompanying Notes to Financial Statements. | 71 ________________________________________________________________________________ AUGUST 31, 2005 COLUMBIA STRATEGIC INVESTOR FUND SHARES VALUE ($) - -------------------------------------------------------------------------- COMMON STOCKS - (CONTINUED) UTILITIES - (CONTINUED) WATER UTILITIES - 0.2% California Water Service Group 30,000 1,192,500 ----------- Water Utilities Total 1,192,500 ----------- UTILITIES TOTAL 17,198,050 Total Common Stocks (cost of $289,802,431) 383,362,529 INVESTMENT COMPANIES - 0.6% iShares MSCI Malaysia Index Fund 150,000 1,089,000 Japan Smaller Capitalization Fund, Inc. 100,000 1,350,000 Thai Fund, Inc. 100,000 945,000 ----------- Total Investment Companies (cost of $2,730,651) 3,384,000 SHORT-TERM OBLIGATIONS - 27.1% PAR ($) REPURCHASE AGREEMENT - 24.4% Repurchase agreement with State Street Bank & Trust Co., dated 08/31/05, due 09/01/05 at 3.430%, collateralized by U.S.Treasury Notes with various maturities to 09/30/06, market value of $130,600,786 (repurchase proceeds $128,050,199) 128,038,000 128,038,000 ----------- U.S. GOVERNMENT AGENCY - 2.7% Federal Home Loan Bank, Discount Note 2.150% 09/01/05 (d) 14,226,000 14,226,000 Total Short-Term Obligations (cost of $142,264,000) 142,264,000 TOTAL INVESTMENTS - 100.6% (COST OF $434,797,082) (e) 529,010,529 OTHER ASSETS & LIABILITIES, NET - (0.6)% (3,193,470) NET ASSETS - 100.0% 525,817,059 NOTES TO INVESTMENT PORTFOLIO: (a) Non-income producing security. (b) Represents fair value as determined in good faith under procedures approved by the Board of Trustees. (c) Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. This security may be resold in transactions exempt from registration, normally to qualified institutional buyers. At August 31, 2005, the value of this security, which is not illiquid, represents 0.7% of net assets. (d) The rate shown represents the annualized yield at the date of purchase. (e) Cost for federal income tax purposes is $436,990,395. At August 31, 2005, the Fund held investments in the following sectors: % OF SECTOR (UNAUDITED) NET ASSETS ------------------------------------------------------------------ Health Care 12.1% Financials 10.8 Industrials 8.9 Consumer Discretionary 8.9 Information Technology 8.6 Energy 8.5 Consumer Staples 6.1 Materials 4.2 Utilities 3.3 Telecommunication Services 1.5 Investment Companies 0.6 Short-Term Obligations 27.1 Other Assets & Liabilities, Net (0.6) ----- 100.0% ===== The Fund was invested in the following countries at August 31, 2005: % OF TOTAL SUMMARY OF SECURITIES BY COUNTRY (UNAUDITED) VALUE INVESTMENTS -------------------------------------------------------------------- United States* $428,555,365 81.0% Japan 17,497,494 3.3 Finland 12,492,990 2.4 Netherlands 10,462,125 2.0 Canada 9,552,430 1.8 Brazil 8,034,376 1.5 United Kingdom 7,965,050 1.5 Switzerland 5,475,494 1.0 Norway 4,780,645 0.9 South Korea 3,933,750 0.7 Germany 3,770,619 0.7 Ireland 2,194,500 0.4 Hungary 1,997,214 0.4 Panama 2,160,000 0.4 Israel 2,115,600 0.4 Mexico 1,552,500 0.3 Denmark 1,514,589 0.3 India 1,376,100 0.3 Indonesia 1,344,000 0.3 China 676,800 0.1 Luxembourg 637,500 0.1 Taiwan 509,088 0.1 Russia Federation 412,300 0.1 ------------ ----- $529,010,529 100.0% ============ ===== * Includes Short-Term Obligations. Certain securities are listed by country of underlying exposure but may trade predominately on other exchanges. ACRONYM NAME ------- ---- ADR American Depositary Receipt GDR Global Depositary Receipt REIT Real Estate Investment Trust 72 | See Accompanying Notes to Financial Statements. INVESTMENT PORTFOLIO ___________________________________________________________ AUGUST 31, 2005 COLUMBIA BALANCED FUND SHARES VALUE ($) - -------------------------------------------------------------------------- COMMON STOCKS - 59.0% CONSUMER DISCRETIONARY - 9.1% DIVERSIFIED CONSUMER SERVICES - 0.9% Career Education Corp. (a) 73,120 2,866,304 ----------- Diversified Consumer Services Total 2,866,304 HOUSEHOLD DURABLES - 0.4% Sony Corp., ADR 38,600 1,297,732 ----------- Household Durables Total 1,297,732 INTERNET & CATALOG RETAIL - 0.9% Amazon.com, Inc. (a) 44,790 1,912,533 Expedia, Inc. (a) 45,200 1,006,152 ----------- Internet & Catalog Retail Total 2,918,685 LEISURE EQUIPMENT & PRODUCTS - 0.4% Hasbro, Inc. 54,170 1,121,319 ----------- Leisure Equipment & Products Total 1,121,319 MEDIA - 5.0% Clear Channel Communications, Inc. 33,500 1,115,550 Comcast Corp., Class A (a) 79,826 2,454,649 Liberty Global, Inc., Class A (a) 19,045 966,534 Liberty Media Corp., Class A (a) 311,520 2,588,731 News Corp., Class A 177,860 2,883,111 Time Warner, Inc. 203,030 3,638,298 Viacom, Inc., Class B 58,880 2,001,331 ----------- Media Total 15,648,204 MULTILINE RETAIL - 1.0% Federated Department Stores, Inc. 15,139 1,044,281 Kohl's Corp. (a) 39,430 2,068,104 ----------- Multiline Retail Total 3,112,385 SPECIALTY RETAIL - 0.5% RadioShack Corp. 65,060 1,630,403 ----------- Specialty Retail Total 1,630,403 ----------- CONSUMER DISCRETIONARY TOTAL 28,595,032 CONSUMER STAPLES - 3.6% BEVERAGES - 0.8% Coca-Cola Co. 58,340 2,566,960 ----------- Beverages Total 2,566,960 FOOD & STAPLES RETAILING - 0.6% Wal-Mart Stores, Inc. 41,800 1,879,328 ----------- Food & Staples Retailing Total 1,879,328 FOOD PRODUCTS - 1.0% McCormick & Co., Inc. 39,900 1,353,009 Smithfield Foods, Inc. (a) 62,700 1,746,195 ----------- Food Products Total 3,099,204 SHARES VALUE ($) - -------------------------------------------------------------------------- HOUSEHOLD PRODUCTS - 0.6% Colgate-Palmolive Co. 35,930 1,886,325 ----------- Household Products Total 1,886,325 TOBACCO - 0.6% Altria Group, Inc. 24,565 1,736,746 ----------- Tobacco Total 1,736,746 ----------- CONSUMER STAPLES TOTAL 11,168,563 ENERGY - 1.9% ENERGY EQUIPMENT & SERVICES - 0.6% Transocean, Inc. (a) 33,210 1,960,718 ----------- Energy Equipment & Services Total 1,960,718 OIL, GAS & CONSUMABLE FUELS - 1.3% Anadarko Petroleum Corp. 12,110 1,100,436 BP PLC, ADR 16,260 1,111,859 Devon Energy Corp. 31,170 1,894,201 ----------- Oil, Gas & Consumable Fuels Total 4,106,496 ----------- ENERGY TOTAL 6,067,214 FINANCIALS - 9.7% CAPITAL MARKETS - 1.7% E*TRADE Financial Corp. (a) 105,810 1,692,960 Lazard Ltd., Class A 91,640 2,329,489 Morgan Stanley 27,065 1,376,796 ----------- Capital Markets Total 5,399,245 COMMERCIAL BANKS - 0.3% Fifth Third Bancorp 19,080 790,103 ----------- Commercial Banks Total 790,103 CONSUMER FINANCE - 0.6% American Express Co. 34,005 1,878,436 ----------- Consumer Finance Total 1,878,436 DIVERSIFIED FINANCIAL SERVICES - 1.8% Citigroup, Inc. 62,633 2,741,447 JPMorgan Chase & Co. 85,680 2,903,695 ----------- Diversified Financial Services Total 5,645,142 INSURANCE - 4.5% Ace Ltd. 51,910 2,305,323 American International Group, Inc. 59,550 3,525,360 Berkshire Hathaway, Inc., Class B (a) 1,316 3,653,216 Chubb Corp. 14,545 1,264,833 UnumProvident Corp. 171,100 3,305,652 ----------- Insurance Total 14,054,384 THRIFTS & MORTGAGE FINANCE - 0.8% MGIC Investment Corp. 40,940 2,555,884 ----------- Thrifts & Mortgage Finance Total 2,555,884 ----------- FINANCIALS TOTAL 30,323,194 See Accompanying Notes to Financial Statements. | 73 ________________________________________________________________________________ AUGUST 31, 2005 COLUMBIA BALANCED FUND SHARES VALUE ($) - -------------------------------------------------------------------------- COMMON STOCKS - (CONTINUED) HEALTH CARE - 9.8% BIOTECHNOLOGY - 2.5% Amgen, Inc. (a) 42,893 3,427,151 MedImmune, Inc. (a) 56,230 1,682,964 Millennium Pharmaceuticals, Inc. (a) 292,100 2,923,921 ----------- Biotechnology Total 8,034,036 HEALTH CARE EQUIPMENT & SUPPLIES - 1.8% Biomet, Inc. 40,540 1,495,521 Thermo Electron Corp. (a) 72,130 2,012,427 Waters Corp. (a) 47,930 2,179,377 ----------- Health Care Equipment & Supplies Total 5,687,325 HEALTH CARE PROVIDERS & SERVICES - 2.5% AmerisourceBergen Corp. 18,590 1,388,115 Cardinal Health, Inc. 31,650 1,886,657 McKesson Corp. 23,630 1,102,812 WebMD Corp. (a) 308,540 3,381,598 ----------- Health Care Providers & Services Total 7,759,182 PHARMACEUTICALS - 3.0% Barr Pharmaceuticals, Inc. (a) 60,050 2,738,880 Eli Lilly & Co. 16,035 882,246 Endo Pharmaceuticals Holdings, Inc. (a) 66,200 1,986,000 IVAX Corp. (a) 75,520 1,955,968 Pfizer, Inc. 73,230 1,865,168 ----------- Pharmaceuticals Total 9,428,262 ----------- HEALTH CARE TOTAL 30,908,805 INDUSTRIALS - 7.0% AEROSPACE & DEFENSE - 1.0% Honeywell International, Inc. 83,590 3,199,825 ----------- Aerospace & Defense Total 3,199,825 AIR FREIGHT & LOGISTICS - 0.3% United Parcel Service, Inc., Class B 14,330 1,015,854 ----------- Air Freight & Logistics Total 1,015,854 AIRLINES - 0.7% Southwest Airlines Co. 171,580 2,285,446 ----------- Airlines Total 2,285,446 COMMERCIAL SERVICES & SUPPLIES - 2.4% Allied Waste Industries, Inc. (a) 288,650 2,303,427 ARAMARK Corp., Class B 90,900 2,483,388 Cintas Corp. 45,520 1,877,700 Waste Management, Inc. 31,085 852,662 ----------- Commercial Services & Supplies Total 7,517,177 CONSTRUCTION & ENGINEERING - 0.3% Jacobs Engineering Group, Inc. (a) 14,908 930,259 ----------- Construction & Engineering Total 930,259 SHARES VALUE ($) - -------------------------------------------------------------------------- INDUSTRIAL CONGLOMERATES - 0.9% Tyco International Ltd. 101,300 2,819,179 ----------- Industrial Conglomerates Total 2,819,179 MACHINERY - 0.9% Dover Corp. 66,215 2,694,950 ----------- Machinery Total 2,694,950 ROAD & RAIL - 0.5% Union Pacific Corp. 24,460 1,669,884 ----------- Road & Rail Total 1,669,884 ----------- INDUSTRIALS TOTAL 22,132,574 INFORMATION TECHNOLOGY - 12.7% COMMUNICATIONS EQUIPMENT - 2.7% Avaya, Inc. (a) 175,300 1,788,060 Cisco Systems, Inc. (a) 158,650 2,795,413 Corning, Inc. (a) 103,880 2,073,445 Nortel Networks Corp. (a) 615,700 1,871,728 ----------- Communications Equipment Total 8,528,646 COMPUTERS & PERIPHERALS - 2.4% Dell, Inc. (a) 40,162 1,429,767 Hewlett-Packard Co. 87,250 2,422,060 International Business Machines Corp. 23,930 1,929,237 SanDisk Corp. (a) 45,340 1,760,552 ----------- Computers & Peripherals Total 7,541,616 ELECTRONIC EQUIPMENT & INSTRUMENTS - 1.5% Agilent Technologies, Inc. (a) 70,920 2,280,787 Celestica, Inc. (a) 148,750 1,774,588 Symbol Technologies, Inc. 57,212 525,206 ----------- Electronic Equipment & Instruments Total 4,580,581 SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 3.3% ATI Technologies, Inc. (a) 230,700 2,809,926 Broadcom Corp., Class A (a) 58,820 2,558,670 Intel Corp. 103,750 2,668,450 Linear Technology Corp. 60,300 2,287,179 ----------- Semiconductors & Semiconductor Equipment Total 10,324,225 SOFTWARE - 2.8% Electronic Arts, Inc. (a) 20,460 1,171,949 Microsoft Corp. 205,790 5,638,646 Oracle Corp. (a) 163,675 2,122,864 ----------- Software Total 8,933,459 ----------- INFORMATION TECHNOLOGY TOTAL 39,908,527 MATERIALS - 3.0% CHEMICALS - 0.3% Cytec Industries, Inc. 23,100 1,099,560 ----------- Chemicals Total 1,099,560 74 | See Accompanying Notes to Financial Statements. ________________________________________________________________________________ AUGUST 31, 2005 COLUMBIA BALANCED FUND SHARES VALUE ($) - -------------------------------------------------------------------------- COMMON STOCKS - (CONTINUED) MATERIALS - (CONTINUED) CONTAINERS & PACKAGING - 1.3% Sealed Air Corp. (a) 31,160 1,581,370 Smurfit-Stone Container Corp. (a) 237,000 2,616,480 ----------- Containers & Packaging Total 4,197,850 METALS & MINING - 1.4% Alcoa, Inc. 79,880 2,139,985 Mittal Steel Co. NV, Class A 74,893 2,108,238 ----------- Metals & Mining Total 4,248,223 ----------- MATERIALS TOTAL 9,545,633 TELECOMMUNICATION SERVICES - 2.2% DIVERSIFIED TELECOMMUNICATION SERVICES - 2.2% CenturyTel, Inc. 31,730 1,139,107 Qwest Communications International, Inc. (a) 446,490 1,741,311 Sprint Nextel Corp. 78,978 2,047,901 Telefonos de Mexico SA de CV, ADR 95,600 1,835,520 ----------- Diversified Telecommunication Services Total 6,763,839 ----------- TELECOMMUNICATION SERVICES TOTAL 6,763,839 Total Common Stocks (cost of $167,835,308) 185,413,381 MORTGAGE-BACKED SECURITIES - 13.2% PAR ($) AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS - 7.7% Federal Home Loan Mortgage Corp. 4.000% 09/15/15 6,220,000 6,159,174 4.000% 10/15/18 3,600,000 3,442,445 4.000% 10/15/26 5,300,000 5,258,483 4.500% 03/15/18 2,920,000 2,911,459 4.500% 10/15/18 1,840,000 1,845,706 4.500% 02/15/27 630,000 628,559 4.500% 07/15/27 1,312,012 1,309,012 4.500% 08/15/28 720,000 712,566 6.500% 11/15/30 381,399 384,743 Federal National Mortgage Association 4.500% 11/25/14 630,000 632,546 6.500% 07/25/30 680,300 682,422 ----------- AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS TOTAL 23,967,115 PAR ($) VALUE ($) - -------------------------------------------------------------------------- MORTGAGE-BACKED SECURITIES - 5.5% Federal Home Loan Mortgage Corp. 5.500% 12/01/18 1,472,720 1,505,509 5.500% 07/01/19 418,798 428,071 5.500% 08/01/35 1,830,000 1,850,857 6.000% 03/01/17 144,132 148,717 6.000% 04/01/17 858,470 885,780 6.000% 05/01/17 412,883 426,018 6.000% 08/01/17 277,864 286,703 6.500% 08/01/32 261,968 271,231 Federal National Mortgage Association 5.000% 07/01/18 104,667 105,515 5.000% 08/01/18 1,704,586 1,718,021 5.000% 10/01/18 841,513 848,145 5.000% 05/01/20 1,914,930 1,929,433 5.000% 06/01/20 900,186 907,003 5.000% 07/01/20 4,802,384 4,838,755 5.831% 07/01/32 (b) 756,430 762,226 Government National Mortgage Association 7.000% 10/15/31 125,433 131,988 7.000% 04/15/32 129,921 136,698 7.000% 05/15/32 146,818 154,477 ----------- MORTGAGE-BACKED SECURITIES TOTAL 17,335,147 Total Mortgage-Backed Securities (cost of $41,004,276) 41,302,262 CORPORATE FIXED-INCOME BONDS & NOTES - 12.8% BASIC MATERIALS - 0.3% CHEMICALS - 0.1% Airgas, Inc. 9.125% 10/01/11 75,000 81,000 EquiStar Chemicals LP 10.125% 09/01/08 25,000 27,531 10.625% 05/01/11 25,000 27,688 Nalco Co. 7.750% 11/15/11 25,000 26,250 ----------- Chemicals Total 162,469 FOREST PRODUCTS & PAPER - 0.0% Boise Cascade LLC 7.125% 10/15/14 95,000 93,100 ----------- Forest Products & Paper Total 93,100 IRON/STEEL - 0.0% Russel Metals, Inc. 6.375% 03/01/14 65,000 62,563 ----------- Iron/Steel Total 62,563 METALS & MINING - 0.2% Alcan, Inc. 4.500% 05/15/13 500,000 489,865 ----------- Metals & Mining Total 489,865 ----------- BASIC MATERIALS TOTAL 807,997 See Accompanying Notes to Financial Statements. | 75 ________________________________________________________________________________ AUGUST 31, 2005 COLUMBIA BALANCED FUND PAR ($) VALUE ($) - -------------------------------------------------------------------------- CORPORATE FIXED-INCOME BONDS & NOTES - (CONTINUED) COMMUNICATIONS - 1.5% ADVERTISING - 0.1% Lamar Media Corp. 7.250% 01/01/13 175,000 184,188 ----------- Advertising Total 184,188 MEDIA - 0.5% Comcast Corp. 7.050% 03/15/33 375,000 438,004 Dex Media West LLC 5.875% 11/15/11 30,000 29,400 DirecTV Holdings LLC 8.375% 03/15/13 96,000 105,360 EchoStar DBS Corp. 5.750% 10/01/08 90,000 89,100 6.625% 10/01/14 85,000 84,256 Emmis Operating Co. 6.875% 05/15/12 35,000 35,175 LIN Television Corp. 6.500% 05/15/13 50,000 47,750 R.H. Donnelley Finance Corp. 10.875% 12/15/12 (c) 115,000 132,825 Rogers Cable, Inc. 7.875% 05/01/12 100,000 108,625 Time Warner, Inc. 6.625% 05/15/29 425,000 462,387 ----------- Media Total 1,532,882 TELECOMMUNICATION SERVICES - 0.9% Cingular Wireless Services, Inc. 8.750% 03/01/31 250,000 352,775 Deutsche Telekom International Finance BV 8.500% 06/15/10 525,000 601,408 Nextel Communications, Inc. 7.375% 08/01/15 175,000 188,781 Rogers Wireless, Inc. 7.500% 03/15/15 15,000 16,350 8.000% 12/15/12 30,000 32,100 Sprint Capital Corp. 6.875% 11/15/28 450,000 519,543 Verizon Global Funding Corp. 7.750% 12/01/30 700,000 901,033 Vodafone Group PLC 7.750% 02/15/10 350,000 396,533 ----------- Telecommunication Services Total 3,008,523 ----------- COMMUNICATIONS TOTAL 4,725,593 PAR ($) VALUE ($) - -------------------------------------------------------------------------- CONSUMER CYCLICAL - 0.8% AUTO MANUFACTURERS - 0.1% DaimlerChrysler NA Holding Corp. 8.500% 01/18/31 230,000 288,864 ----------- Auto Manufacturers Total 288,864 ENTERTAINMENT - 0.1% Cinemark USA, Inc. 9.000% 02/01/13 95,000 100,700 Speedway Motorsports, Inc. 6.750% 06/01/13 96,000 99,360 Warner Music Group 7.375% 04/15/14 60,000 61,050 ----------- Entertainment Total 261,110 HOME BUILDERS - 0.0% K. Hovnanian Enterprises, Inc. 6.000% 01/15/10 25,000 24,437 6.375% 12/15/14 30,000 29,400 6.500% 01/15/14 5,000 4,938 KB Home 8.625% 12/15/08 75,000 81,000 ----------- Home Builders Total 139,775 LEISURE TIME - 0.1% Royal Caribbean Cruises Ltd. 6.750% 03/15/08 45,000 46,463 6.875% 12/01/13 50,000 53,250 8.750% 02/02/11 55,000 62,425 ----------- Leisure Time Total 162,138 LODGING - 0.2% Caesars Entertainment, Inc. 7.875% 03/15/10 45,000 49,669 8.875% 09/15/08 15,000 16,556 9.375% 02/15/07 35,000 37,144 Kerzner International Ltd. 8.875% 08/15/11 75,000 80,063 MGM Mirage 6.000% 10/01/09 45,000 45,000 8.500% 09/15/10 30,000 33,000 Starwood Hotels & Resorts Worldwide, Inc. 7.375% 05/01/07 150,000 155,437 Station Casinos, Inc. 6.875% 03/01/16 165,000 168,712 Wynn Las Vegas LLC 6.625% 12/01/14 70,000 67,988 ----------- Lodging Total 653,569 RETAIL - 0.3% AutoNation, Inc. 9.000% 08/01/08 100,000 110,750 Couche-Tard 7.500% 12/15/13 125,000 130,000 76 | See Accompanying Notes to Financial Statements. ________________________________________________________________________________ AUGUST 31, 2005 COLUMBIA BALANCED FUND PAR ($) VALUE ($) - -------------------------------------------------------------------------- CORPORATE FIXED-INCOME BONDS & NOTES - (CONTINUED) CONSUMER CYCLICAL - (CONTINUED) RETAIL - (CONTINUED) Domino's, Inc. 8.250% 07/01/11 30,000 32,100 Group 1 Automotive, Inc. 8.250% 08/15/13 50,000 51,250 Lowe's Companies, Inc. 6.500% 03/15/29 700,000 819,693 Suburban Propane Partners LP 6.875% 12/15/13 45,000 43,537 ----------- Retail Total 1,187,330 ----------- CONSUMER CYCLICAL TOTAL 2,692,786 CONSUMER NON-CYCLICAL - 1.1% BEVERAGES - 0.4% Bottling Group LLC 2.450% 10/16/06 700,000 687,666 Constellation Brands, Inc. 8.000% 02/15/08 175,000 184,187 Cott Beverages, Inc. 8.000% 12/15/11 175,000 184,188 ----------- Beverages Total 1,056,041 COMMERCIAL SERVICES - 0.1% Corrections Corp. of America 6.250% 03/15/13 25,000 24,688 7.500% 05/01/11 100,000 103,000 Iron Mountain, Inc. 7.750% 01/15/15 150,000 153,750 United Rentals, Inc. 7.750% 11/15/13 45,000 43,875 ----------- Commercial Services Total 325,313 FOOD - 0.3% Kroger Co. 6.200% 06/15/12 400,000 430,652 Safeway, Inc. 4.950% 08/16/10 400,000 401,564 ----------- Food Total 832,216 HEALTHCARE SERVICES - 0.3% Extendicare Health Services, Inc. 6.875% 05/01/14 30,000 29,550 9.500% 07/01/10 10,000 10,575 Fisher Scientific International, Inc. 6.750% 08/15/14 55,000 57,475 HCA, Inc. 6.950% 05/01/12 125,000 131,790 Triad Hospitals, Inc. 7.000% 05/15/12 25,000 25,875 WellPoint, Inc. 6.800% 08/01/12 600,000 675,864 ----------- Healthcare Services Total 931,129 PAR ($) VALUE ($) - -------------------------------------------------------------------------- HOUSEHOLD PRODUCTS/WARES - 0.0% Scotts Co. 6.625% 11/15/13 70,000 72,100 ----------- Household Products/Wares Total 72,100 PHARMACEUTICALS - 0.0% AmerisourceBergen Corp. 8.125% 09/01/08 60,000 65,700 Omnicare, Inc. 8.125% 03/15/11 45,000 47,025 ----------- Pharmaceuticals Total 112,725 ----------- CONSUMER NON-CYCLICAL TOTAL 3,329,524 ENERGY - 1.0% COAL - 0.1% Arch Western Finance LLC 6.750% 07/01/13 155,000 158,487 Peabody Energy Corp. 6.875% 03/15/13 170,000 177,225 ----------- Coal Total 335,712 OIL & GAS - 0.8% Chesapeake Energy Corp. 6.375% 06/15/15 15,000 15,263 7.500% 09/15/13 145,000 156,237 Devon Energy Corp. 7.950% 04/15/32 375,000 498,810 Marathon Oil Corp. 6.800% 03/15/32 600,000 712,128 Newfield Exploration Co. 6.625% 09/01/14 130,000 135,850 Occidental Petroleum Corp. 4.250% 03/15/10 775,000 770,916 Plains Exploration & Production Co. 7.125% 06/15/14 90,000 96,075 Pogo Producing Co. 8.250% 04/15/11 20,000 21,100 Pride International, Inc. 7.375% 07/15/14 110,000 118,800 Vintage Petroleum, Inc. 7.875% 05/15/11 100,000 105,000 ----------- Oil & Gas Total 2,630,179 OIL & GAS SERVICES - 0.0% Hornbeck Offshore Services, Inc. 6.125% 12/01/14 50,000 50,125 Universal Compression, Inc. 7.250% 05/15/10 95,000 99,275 ----------- Oil & Gas Services Total 149,400 See Accompanying Notes to Financial Statements. | 77 ________________________________________________________________________________ AUGUST 31, 2005 COLUMBIA BALANCED FUND PAR ($) VALUE ($) - -------------------------------------------------------------------------- CORPORATE FIXED-INCOME BONDS & NOTES - (CONTINUED) ENERGY - (CONTINUED) PIPELINES - 0.1% MarkWest Energy Partners LP 6.875% 11/01/14 (c) 45,000 45,338 Williams Companies, Inc. 7.125% 09/01/11 15,000 15,900 8.125% 03/15/12 85,000 94,775 ----------- Pipelines Total 156,013 ----------- ENERGY TOTAL 3,271,304 FINANCIALS - 4.6% BANKS - 0.9% Marshall & Ilsley Corp. 4.375% 08/01/09 700,000 702,856 US Bank NA 6.375% 08/01/11 600,000 660,168 Wachovia Corp. 4.875% 02/15/14 300,000 302,628 Wells Fargo & Co. 3.419% 03/10/08 (b) 1,200,000 1,200,180 ----------- Banks Total 2,865,832 DIVERSIFIED FINANCIAL SERVICES - 2.9% American General Finance Corp. 5.375% 09/01/09 475,000 490,020 Capital One Bank 4.875% 05/15/08 325,000 329,134 CIT Group, Inc. 4.125% 02/21/06 575,000 575,023 Citigroup, Inc. 5.000% 09/15/14 1,450,000 1,490,542 Countrywide Home Loans, Inc. 2.875% 02/15/07 600,000 587,862 Goldman Sachs Group, Inc. 6.345% 02/15/34 745,000 805,777 Household Finance Corp. 6.400% 06/17/08 650,000 684,378 JPMorgan Chase Capital XV 5.875% 03/15/35 800,000 815,464 Lehman Brothers Holdings, Inc. 4.000% 01/22/08 800,000 795,736 Merrill Lynch & Co., Inc. 4.125% 01/15/09 1,000,000 992,090 Morgan Stanley 4.750% 04/01/14 400,000 395,624 SLM Corp. 5.125% 08/27/12 990,000 1,020,739 ----------- Diversified Financial Services Total 8,982,389 PAR ($) VALUE ($) - -------------------------------------------------------------------------- INSURANCE - 0.4% Allstate Financial Global Funding II 2.625% 10/22/06 (c) 700,000 687,085 Genworth Financial, Inc. 4.750% 06/15/09 650,000 656,006 ----------- Insurance Total 1,343,091 REAL ESTATE INVESTMENT TRUSTS (REITS) - 0.2% Health Care Property Investors, Inc. 6.450% 06/25/12 500,000 537,525 iStar Financial, Inc. 5.125% 04/01/11 25,000 24,922 Series B, 7.000% 03/15/08 25,000 26,271 ----------- Real Estate Investment Trusts (REITs) Total 588,718 SAVINGS & LOANS - 0.2% Washington Mutual, Inc. 4.200% 01/15/10 700,000 692,573 ----------- Savings & Loans Total 692,573 ----------- FINANCIALS TOTAL 14,472,603 INDUSTRIALS - 2.1% AEROSPACE & DEFENSE - 0.5% L-3 Communications Corp. 6.125% 07/15/13 5,000 5,050 7.625% 06/15/12 170,000 180,200 Lockheed Martin Corp. 8.500% 12/01/29 450,000 646,902 TransDigm, Inc. 8.375% 07/15/11 125,000 132,188 United Technologies Corp. 6.500% 06/01/09 750,000 807,412 ----------- Aerospace & Defense Total 1,771,752 AUTO MANUFACTURERS - 0.3% Ford Motor Credit Co. 7.375% 10/28/09 855,000 851,152 ----------- Auto Manufacturers Total 851,152 ENVIRONMENTAL CONTROL - 0.2% Allied Waste North America, Inc. 6.375% 04/15/11 75,000 72,188 Waste Management, Inc. 7.375% 08/01/10 450,000 501,732 ----------- Environmental Control Total 573,920 HAND/MACHINE TOOLS - 0.0% Kennametal, Inc. 7.200% 06/15/12 85,000 94,147 ----------- Hand/Machine Tools Total 94,147 78 | See Accompanying Notes to Financial Statements. ________________________________________________________________________________ AUGUST 31, 2005 COLUMBIA BALANCED FUND PAR ($) VALUE ($) - -------------------------------------------------------------------------- CORPORATE FIXED-INCOME BONDS & NOTES - (CONTINUED) INDUSTRIALS - (CONTINUED) MACHINERY-DIVERSIFIED - 0.1% Westinghouse Air Brake Technologies Corp. 6.875% 07/31/13 155,000 160,425 ----------- Machinery-Diversified Total 160,425 MISCELLANEOUS MANUFACTURING - 0.4% General Electric Co. 5.000% 02/01/13 1,250,000 1,282,787 ----------- Miscellaneous Manufacturing Total 1,282,787 PACKAGING & CONTAINERS - 0.2% Ball Corp. 7.750% 08/01/06 175,000 178,937 Jefferson Smurfit Corp. 8.250% 10/01/12 55,000 54,587 Owens-Illinois, Inc. 7.500% 05/15/10 90,000 93,150 Silgan Holdings, Inc. 6.750% 11/15/13 140,000 142,975 Smurfit-Stone Container Corp. 8.375% 07/01/12 25,000 24,938 Stone Container Finance 7.375% 07/15/14 35,000 33,163 ----------- Packaging & Containers Total 527,750 TRANSPORTATION - 0.4% Canadian National Railway Co. 7.195% 01/02/16 495,302 591,128 Offshore Logistics, Inc. 6.125% 06/15/13 105,000 102,900 Teekay Shipping Corp. 8.875% 07/15/11 60,000 68,775 Union Pacific Corp. 3.875% 02/15/09 500,000 491,230 ----------- Transportation Total 1,254,033 ----------- INDUSTRIALS TOTAL 6,515,966 TECHNOLOGY - 0.2% COMPUTERS - 0.2% International Business Machines Corp. 5.875% 11/29/32 500,000 558,380 ----------- Computers Total 558,380 SEMICONDUCTORS - 0.0% Freescale Semiconductor, Inc. 6.875% 07/15/11 135,000 141,750 ----------- Semiconductors Total 141,750 ----------- TECHNOLOGY TOTAL 700,130 PAR ($) VALUE ($) - -------------------------------------------------------------------------- UTILITIES - 1.2% ELECTRIC - 0.8% AES Corp. 7.750% 03/01/14 70,000 75,775 CenterPoint Energy Houston Electric LLC 5.750% 01/15/14 500,000 533,510 Exelon Generation Co. 6.950% 06/15/11 500,000 557,090 Nevada Power Co. 5.875% 01/15/15 (c) 15,000 15,075 6.500% 04/15/12 30,000 30,900 NorthWestern Corp. 5.875% 11/01/14 (c) 5,000 5,125 Scottish Power PLC 4.910% 03/15/10 725,000 733,504 Virginia Electric & Power Co. 5.375% 02/01/07 700,000 709,450 ----------- Electric Total 2,660,429 GAS - 0.4% Kinder Morgan Energy Partners LP 7.300% 08/15/33 600,000 732,564 Sempra Energy 4.750% 05/15/09 375,000 376,620 ----------- Gas Total 1,109,184 ----------- UTILITIES TOTAL 3,769,613 Total Corporate Fixed-Income Bonds & Notes (cost of $38,838,016) 40,285,516 GOVERNMENT AGENCIES & OBLIGATIONS - 6.4% FOREIGN GOVERNMENT OBLIGATIONS - 1.2% Province of Ontario 3.500% 09/17/07 1,000,000 988,100 Province of Quebec 6.500% 01/17/06 1,100,000 1,110,780 Republic of Italy 2.500% 03/31/06 1,300,000 1,287,689 United Mexican States 7.500% 04/08/33 250,000 292,500 ----------- FOREIGN GOVERNMENT OBLIGATIONS TOTAL 3,679,069 U.S.GOVERNMENT AGENCIES & OBLIGATIONS - 5.2% Federal Home Loan Bank 3.000% 05/15/06 250,000 248,415 U.S. Treasury Bond 6.250% 08/15/23 4,380,000 5,427,437 U.S. Treasury Inflation Index Note 3.625% 01/15/08 3,033,853 3,217,426 See Accompanying Notes to Financial Statements. | 79 ________________________________________________________________________________ AUGUST 31, 2005 COLUMBIA BALANCED FUND PAR ($) VALUE ($) - -------------------------------------------------------------------------- GOVERNMENT AGENCIES & OBLIGATIONS - (CONTINUED) U.S. GOVERNMENT AGENCIES & OBLIGATIONS - (CONTINUED) U.S. Treasury Note 4.250% 11/15/13 7,460,000 7,592,296 ----------- U.S. GOVERNMENT AGENCIES & OBLIGATIONS TOTAL 16,485,574 Total Government Agencies & Obligations (cost of $20,025,987) 20,164,643 COLLATERALIZED MORTGAGE OBLIGATIONS - 2.6% Bear Stearns Asset Backed Securities, Inc. 5.000% 01/25/34 1,613,411 1,601,617 Countrywide Alternative Loan Trust 4.041% 03/25/34 (b) 4,475,948 4,469,722 SACO I, Inc. 8.715% 09/25/24 (b) 22,248 21,692 Structured Asset Securities Corp. 5.500% 07/25/33 1,286,901 1,303,055 5.500% 05/25/33 862,220 858,081 ----------- Total Collateralized Mortgage Obligations (cost of $8,274,690) 8,254,167 ASSET-BACKED SECURITIES - 1.7% Cityscape Home Equity Loan Trust 7.410% 05/25/28 416,187 415,534 7.940% 10/25/18 611,069 609,920 Federal Housing Administration 9.125% 03/25/33 1,532,181 1,533,713 First Alliance Mortgage Loan Trust 7.340% 06/20/27 137,578 137,552 IMC Home Equity Loan Trust 7.310% 11/20/28 1,329,359 1,328,747 7.520% 08/20/28 665,720 664,908 Salomon Brothers Mortgage Securities VII 7.150% 06/25/28 650,413 645,340 ----------- Total Asset-Backed Securities (cost of $5,360,122) 5,335,714 COMMERCIAL MORTGAGE-BACKED SECURITIES - 1.5% Nationslink Funding Corp. 6.888% 11/10/30 4,380,000 4,576,793 ----------- Total Commercial Mortgage-Backed Securities (cost of $4,425,180) 4,576,793 PAR ($) VALUE ($) - -------------------------------------------------------------------------- SHORT-TERM OBLIGATION - 2.8% Repurchase agreement with State Street Bank & Trust Co., dated 08/31/05, due 09/01/05 at 3.430%, collateralized by a U.S. Treasury Note maturing 11/30/06, market value of $8,875,400 (repurchase proceeds $8,699,829) 8,699,000 8,699,000 ----------- Total Short-Term Obligation (cost of $8,699,000) 8,699,000 TOTAL INVESTMENTS - 100.0% (COST OF $294,462,579) (d) 314,031,476 OTHER ASSETS & LIABILITIES, NET - (0.0)% (123,353) NET ASSETS - 100.0% 313,908,123 NOTES TO INVESTMENT PORTFOLIO: (a) Non-income producing security. (b) The interest rate shown on floating rate or variable rate securities reflects the rate at August 31, 2005. (c) Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At August 31, 2005, these securities, which did not include any illiquid securities, amounted to $885,448, which represents 0.3% of net assets. (d) Cost for federal income tax purposes is $295,292,358. At August 31, 2005, the Fund held the following open short futures contracts: NUMBER OF AGGREGATE EXPIRATION UNREALIZED TYPE CONTRACTS VALUE FACE VALUE DATE DEPRECIATION ------------------------------------------------------------------------- 2-Year U.S. Treasury Notes 35 $7,248,281 $7,242,812 Dec-2005 $(5,469) On August 31, 2005, cash of $16,000 was pledged as collateral for open futures contracts and was being held by the broker of the futures contracts. At August 31, 2005, the asset allocation of the Fund is as follows: % OF ASSET ALLOCATION (UNAUDITED) NET ASSETS --------------------------------------------------------------- Common Stocks 59.0% Mortgage-Backed Securities 13.2 Corporate Fixed-Income Bonds & Notes 12.8 Government Agencies & Obligations 6.4 Collateralized Mortgage Obligations 2.6 Asset-Backed Securities 1.7 Commercial Mortgage-Backed Securities 1.5 Short-Term Obligation 2.8 Other Assets & Liabilities, Net (0.0) ----- 100.0% ===== ACRONYM NAME ------- ---- ADR American Depositary Receipt 80 | See Accompanying Notes to Financial Statements. INVESTMENT PORTFOLIO ___________________________________________________________ AUGUST 31, 2005 COLUMBIA SHORT TERM BOND FUND PAR ($) VALUE ($) - -------------------------------------------------------------------------- CORPORATE FIXED-INCOME BONDS & NOTES - 33.1% COMMUNICATIONS - 3.6% MEDIA - 1.1% Jones Intercable, Inc. 7.625% 04/15/08 1,875,000 2,015,344 Time Warner, Inc. 6.125% 04/15/06 2,460,000 2,487,208 ----------- Media Total 4,502,552 TELECOMMUNICATION SERVICES - 2.5% AT&T Wireless Services, Inc. 7.500% 05/01/07 1,970,000 2,070,785 Deutsche Telekom International Finance BV 8.500% 06/15/10 1,450,000 1,661,033 GTE Southwest, Inc. 6.000% 01/15/06 2,225,000 2,238,839 SBC Communications, Inc. 5.750% 05/02/06 1,600,000 1,615,504 Sprint Capital Corp. 6.375% 05/01/09 1,250,000 1,327,213 Verizon Global Funding Corp. 7.600% 03/15/07 600,000 628,854 Vodafone Group PLC 7.750% 02/15/10 1,100,000 1,246,245 ----------- Telecommunication Services Total 10,788,473 ----------- COMMUNICATIONS TOTAL 15,291,025 CONSUMER CYCLICAL - 1.0% AUTO MANUFACTURERS - 0.3% DaimlerChrysler NA Holding Corp. 4.750% 01/15/08 1,275,000 1,277,282 ----------- Auto Manufacturers Total 1,277,282 RETAIL - 0.7% Lowe's Companies, Inc. 7.500% 12/15/05 1,675,000 1,689,941 Target Corp. 5.950% 05/15/06 1,000,000 1,012,430 ----------- Retail Total 2,702,371 ----------- CONSUMER CYCLICAL TOTAL 3,979,653 CONSUMER NON-CYCLICAL - 3.4% BEVERAGES - 0.8% Bottling Group LLC 2.450% 10/16/06 2,300,000 2,259,474 Coca-Cola Enterprises, Inc. 5.750% 11/01/08 1,275,000 1,330,552 ----------- Beverages Total 3,590,026 PAR ($) VALUE ($) - -------------------------------------------------------------------------- COSMETICS/PERSONAL CARE - 0.2% Procter & Gamble Co. 4.750% 06/15/07 725,000 733,359 ----------- Cosmetics/Personal Care Total 733,359 FOOD - 1.3% General Mills, Inc. 2.625% 10/24/06 1,800,000 1,768,590 Kroger Co. 7.650% 04/15/07 1,585,000 1,665,391 Safeway, Inc. 4.950% 08/16/10 1,900,000 1,907,429 ----------- Food Total 5,341,410 HEALTHCARE SERVICES - 0.3% UnitedHealth Group, Inc. 3.375% 08/15/07 1,415,000 1,394,298 ----------- Healthcare Services Total 1,394,298 HOUSEHOLD PRODUCTS/WARES - 0.8% Fortune Brands, Inc. 2.875% 12/01/06 3,275,000 3,222,895 ----------- Household Products/Wares Total 3,222,895 ----------- CONSUMER NON-CYCLICAL TOTAL 14,281,988 ENERGY - 1.3% OIL & GAS - 1.3% ChevronTexaco Capital Co. 3.500% 09/17/07 1,850,000 1,830,482 Devon Energy Corp. 2.750% 08/01/06 1,825,000 1,799,998 Marathon Oil Corp. 5.375% 06/01/07 1,725,000 1,753,670 ----------- Oil & Gas Total 5,384,150 ----------- ENERGY TOTAL 5,384,150 FINANCIALS - 16.3% BANKS - 3.9% Fifth Third Bank 2.700% 01/30/07 2,075,000 2,033,438 Marshall & Ilsley Corp. 4.375% 08/01/09 2,670,000 2,680,894 US Bancorp 3.125% 03/15/08 3,250,000 3,164,330 Wachovia Corp. 3.500% 08/15/08 3,720,000 3,644,893 Wells Fargo & Co. 3.419% 03/10/08(a) 5,000,000 5,000,750 ----------- Banks Total 16,524,305 See Accompanying Notes to Financial Statements. | 81 ________________________________________________________________________________ AUGUST 31, 2005 COLUMBIA SHORT TERM BOND FUND PAR ($) VALUE ($) - -------------------------------------------------------------------------- CORPORATE FIXED-INCOME BONDS & NOTES - (CONTINUED) FINANCIALS - (CONTINUED) DIVERSIFIED FINANCIAL SERVICES - 9.8% American Express Credit Corp. 3.000% 05/16/08 2,500,000 2,423,200 American General Finance Corp. 3.000% 11/15/06 3,000,000 2,958,930 Bear Stearns Companies, Inc. 6.500% 05/01/06 1,100,000 1,115,664 Capital One Bank 4.875% 05/15/08 1,300,000 1,316,536 CIT Group, Inc. 4.125% 02/21/06 1,700,000 1,700,068 Citigroup, Inc. 6.750% 12/01/05 2,700,000 2,719,089 Countrywide Home Loans, Inc. 2.875% 02/15/07 500,000 489,885 Credit Suisse First Boston USA, Inc. 4.875% 08/15/10 1,480,000 1,503,695 Goldman Sachs Group, Inc. 4.125% 01/15/08 2,560,000 2,553,549 Household Finance Corp. 6.400% 06/17/08 3,225,000 3,395,570 JPMorgan Chase & Co. 3.800% 10/02/09 2,500,000 2,449,175 Lehman Brothers Holdings, Inc. 4.000% 01/22/08 2,500,000 2,486,675 Merrill Lynch & Co., Inc. 4.125% 01/15/09 2,500,000 2,480,225 Morgan Stanley 3.875% 01/15/09 2,400,000 2,365,632 Pitney Bowes Credit Corp. 5.750% 08/15/08 1,525,000 1,587,312 Security Capital Group, Inc. 7.150% 06/15/07 6,315,000 6,617,046 USA Education, Inc. 5.625% 04/10/07 3,000,000 3,065,790 ----------- Diversified Financial Services Total 41,228,041 INSURANCE - 1.0% Allstate Financial Global Funding II 2.625% 10/22/06(b) 2,450,000 2,404,798 Genworth Financial, Inc. 4.750% 06/15/09 2,010,000 2,028,572 ----------- Insurance Total 4,433,370 REAL ESTATE INVESTMENT TRUSTS - 0.5% Health Care Property Investors, Inc. 7.500% 01/15/07 1,875,000 1,947,506 ----------- Real Estate Investment Trusts Total 1,947,506 PAR ($) VALUE ($) - -------------------------------------------------------------------------- SAVINGS & LOANS - 1.1% Washington Mutual, Inc. 4.200% 01/15/10 2,855,000 2,824,708 World Savings Bank 4.125% 03/10/08 2,000,000 1,995,200 ----------- Savings & Loans Total 4,819,908 ----------- FINANCIALS TOTAL 68,953,130 INDUSTRIALS - 4.4% AEROSPACE & DEFENSE - 1.0% Boeing Co. 8.100% 11/15/06 1,820,000 1,904,612 United Technologies Corp. 4.875% 11/01/06 2,475,000 2,486,558 ----------- Aerospace & Defense Total 4,391,170 AUTO MANUFACTURERS - 0.6% Ford Motor Credit Co. 7.375% 10/28/09 2,760,000 2,747,580 ----------- Auto Manufacturers Total 2,747,580 ENVIRONMENTAL CONTROL - 0.4% USA Waste Services, Inc. 7.125% 10/01/07 1,430,000 1,506,891 ----------- Environmental Control Total 1,506,891 MACHINERY - 1.0% Caterpillar Financial Services Corp. 3.625% 11/15/07 1,850,000 1,826,098 John Deere Capital Corp. 4.625% 04/15/09 2,200,000 2,217,028 ----------- Machinery Total 4,043,126 MISCELLANEOUS MANUFACTURING - 0.4% Honeywell International, Inc. 5.125% 11/01/06 1,620,000 1,638,322 ----------- Miscellaneous Manufacturing Total 1,638,322 TRANSPORTATION - 1.0% Canadian National Railway Co. 6.450% 07/15/06(a) 910,000 927,199 CSX Corp. 6.750% 03/15/11 1,450,000 1,598,103 Union Pacific Corp. 3.875% 02/15/09 1,825,000 1,792,990 ----------- Transportation Total 4,318,292 ----------- INDUSTRIALS TOTAL 18,645,381 82 | See Accompanying Notes to Financial Statements. ________________________________________________________________________________ AUGUST 31, 2005 COLUMBIA SHORT TERM BOND FUND PAR ($) VALUE ($) - -------------------------------------------------------------------------- CORPORATE FIXED-INCOME BONDS & NOTES - (CONTINUED) TECHNOLOGY - 0.6% COMPUTERS - 0.6% International Business Machines Corp. 2.375% 11/01/06 2,700,000 2,650,509 ----------- Computers Total 2,650,509 ----------- TECHNOLOGY TOTAL 2,650,509 UTILITIES - 2.5% ELECTRIC - 1.6% Exelon Generation Co. 6.950% 06/15/11 1,850,000 2,061,233 Scottish Power PLC 4.910% 03/15/10 2,400,000 2,428,152 Virginia Electric & Power Co. 5.375% 02/01/07 2,400,000 2,432,400 ----------- Electric Total 6,921,785 GAS - 0.9% Kinder Morgan Energy Partners LP 6.750% 03/15/11 2,200,000 2,409,638 Sempra Energy 4.750% 05/15/09 1,150,000 1,154,968 ----------- Gas Total 3,564,606 ----------- UTILITIES TOTAL 10,486,391 Total Corporate Fixed-Income Bonds & Notes (cost of $141,075,298) 139,672,227 MORTGAGE-BACKED SECURITIES - 21.3% AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS - 8.2% Federal Home Loan Mortgage Corp. 3.000% 06/15/09 1,853,923 1,845,993 4.000% 07/15/14 6,750,000 6,703,229 4.000% 09/15/15 3,980,000 3,944,416 4.000% 10/15/26 7,670,000 7,609,918 6.000% 06/15/31 861,672 876,396 7.000% 06/15/22 194,063 193,737 8.500% 09/15/06 17,660 17,633 Federal National Mortgage Association (c) 05/25/23 1,295,000 1,033,249 4.191% 09/25/18(a) 1,909,479 1,910,596 5.000% 04/25/31 5,304,183 5,326,279 6.000% 01/25/16 113,452 113,388 8.000% 10/25/06 5,884 5,955 Government National Mortgage Association 3.500% 12/20/26 3,937,197 3,915,465 5.000% 05/16/27 650,227 648,756 Small Business Administration 3.875% 06/25/22(a) 517,824 517,708 ----------- AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS TOTAL 34,662,718 PAR ($) VALUE ($) - -------------------------------------------------------------------------- MORTGAGE-BACKED SECURITIES - 13.1% Federal Home Loan Mortgage Corp. 4.000% 05/01/11 5,458,831 5,365,227 5.000% 09/01/19 4,884,642 4,924,262 5.000% 07/01/20 1,744,001 1,758,059 5.500% 05/01/17 244,655 250,089 5.500% 09/01/17 871,921 891,289 5.500% 12/01/17 4,164,226 4,256,721 5.500% 01/01/19 20,344 20,794 5.500% 07/01/19 757,058 773,821 6.000% 10/01/06 57,658 58,178 6.000% 03/01/17 128,634 132,726 6.000% 04/01/17 127,468 131,523 6.000% 08/01/17 370,485 382,271 7.000% 05/01/19 415 420 7.500% 09/01/15 185,759 196,439 8.500% 07/01/30 105,301 114,632 Federal National Mortgage Association 4.500% 12/01/19 3,679,552 3,651,620 4.500% 01/01/20 5,046,312 5,007,259 4.500% 02/01/20 3,865,245 3,835,331 4.500% 04/01/20 6,355,064 6,305,882 4.500% 07/01/20 1,479,030 1,467,584 5.000% 08/01/19 952,108 959,289 5.000% 03/01/20 979,853 987,274 5.000% 04/01/20 6,913,117 6,965,474 5.000% 06/01/20 782,770 788,699 5.500% 02/01/18 2,948,008 3,013,469 6.000% 03/01/09 301,706 306,645 6.000% 05/01/09 70,984 72,146 6.000% 01/01/14 149,599 154,491 6.000% 02/01/17 727,917 751,870 6.000% 05/01/17 311,047 321,282 6.500% 03/01/12 65,591 68,028 6.500% 07/01/32 32,683 33,847 7.500% 08/01/15 125,754 133,188 8.000% 05/01/15 159,108 170,463 8.000% 08/01/30 49,426 52,883 8.000% 05/01/31 56,097 60,020 8.000% 07/01/31 95,563 102,235 Government National Mortgage Association 6.500% 09/15/13 125,712 131,081 6.500% 03/15/32 6,355 6,632 6.500% 11/15/33 624,833 652,052 7.000% 11/15/13 126,536 133,060 7.000% 04/15/29 148,773 156,610 7.000% 08/15/29 5,921 6,233 ----------- MORTGAGE-BACKED SECURITIES TOTAL 55,551,098 Total Mortgage-Backed Securities (cost of $90,398,419) 90,213,816 See Accompanying Notes to Financial Statements. | 83 ________________________________________________________________________________ AUGUST 31, 2005 COLUMBIA SHORT TERM BOND FUND PAR ($) VALUE ($) - -------------------------------------------------------------------------- COLLATERALIZED MORTGAGE OBLIGATIONS - 16.2% Bank of America Mortgage Securities 5.250% 02/25/18 (d) 1,499,444 1,496,161 Bear Stearns Adjustable Rate Mortgage Trust 3.515% 06/25/34 (a) 3,583,400 3,520,296 Countrywide Alternative Loan Trust 4.041% 03/25/34 (a) 1,306,413 1,304,596 Countrywide Home Loan Mortgage Pass Through Trust 4.041% 08/25/18 (a) 9,200,257 9,154,532 4.141% 03/25/34 (a) 6,021,358 6,027,018 5.000% 01/25/18 473,255 472,082 First Horizon Asset Securities, Inc. 4.091% 06/25/18 (a) 2,055,078 2,063,422 4.141% 03/25/18 (a) 5,896,975 5,926,283 GMAC Mortgage Corporation Loan Trust 4.141% 05/25/18 (a) 3,901,793 3,904,602 Ocwen Residential MBS Corp. 7.000% 10/25/40 (b) 63,041 63,166 PNC Mortgage Securities Corp. (c) 04/28/27 (b) 8,032 7,429 Residential Accredit Loans, Inc. 4.251% 07/25/32 (a) 111,760 111,874 Residential Asset Securitization Trust 4.091% 02/25/34 (a) 9,280,896 9,288,599 Residential Funding Mortgage Securities I, Inc. 4.041% 07/25/18 (a) 8,461,515 8,473,700 SACO I, Inc. 7.000% 08/25/36 (b) 486,744 486,890 Sears Corp. 8.500% 04/01/17 66,715 66,782 Structured Asset Securities Corp. 5.500% 05/25/33 431,110 429,041 5.500% 07/25/33 308,458 312,330 5.750% 04/25/33 3,275,170 3,271,790 Washington Mutual Mortgage Securities Corp. 4.141% 03/25/18 (a) 3,589,783 3,608,055 4.141% 06/25/18 (a) 3,134,135 3,150,307 Wells Fargo Mortgage-Backed Securities Trust 5.250% 08/25/33 5,246,513 5,266,082 ----------- Total Collateralized Mortgage Obligations (cost of $68,481,194) 68,405,037 PAR ($) VALUE ($) - --------------------------------------------------------------------------- ASSET-BACKED SECURITIES - 13.0% ABFS Mortgage Loan Trust 4.428% 12/15/33 90,074 86,503 Advanta Mortgage Loan Trust 7.750% 10/25/26 15,383 15,427 AmeriCredit Automobile Receivables Trust 5.370% 06/12/08 306,004 306,336 Amresco Residential Securities Mortgage Loan Trust 4.061% 06/25/27 (a) 49,605 49,615 4.121% 07/25/28 (a) 186,097 187,727 Bear Stearns Asset Backed Securities, Inc. 3.751% 06/25/35 (a) 8,717,293 8,719,996 CIT Equipment Collateral 2.200% 03/20/08 2,688,273 2,653,038 Cityscape Home Equity Loan Trust 7.380% 07/25/28 182,440 182,139 7.410% 05/25/28 46,763 46,689 First Alliance Mortgage Loan Trust 6.680% 06/25/25 204,713 204,150 First Franklin Mortgage Loan Asset Backed Certificates 3.841% 03/25/25 (a) 1,927,267 1,928,135 Harley-Davidson Motorcycle Trust 3.090% 06/15/10 1,042,528 1,029,392 IMC Home Equity Loan Trust 7.080% 08/20/28 104,935 104,752 7.310% 11/20/28 100,617 100,570 7.500% 04/25/26 595,394 602,533 7.520% 08/20/28 524,587 523,947 KeyCorp Student Loan Trust 3.960% 10/25/25 (a) 12,080,000 12,171,325 4.419% 01/27/23 (a)(b) 3,069,949 3,091,776 Morgan Stanley Dean Witter 4.061% 11/25/32 (a) 107,932 107,965 Nissan Auto Receivables Owner Trust 4.600% 09/17/07 762,714 763,537 Residential Asset Mortgage Products 3.981% 09/25/33 (a) 1,266,802 1,272,274 Residential Funding Mortgage Securities II, Inc. 3.931% 08/25/33 (a) 108,229 108,424 SLM Student Loan Trust 4.139% 01/25/10 (a) 642,760 642,987 4.469% 07/25/11 (a) 6,030,000 6,032,412 4.590% 01/25/13 (a) 8,950,000 9,210,729 University Support Services, Inc. 3.710% 09/20/15 (a) 792,558 798,859 WFS Financial Owner Trust 2.810% 08/22/11 4,000,000 3,920,080 ----------- Total Asset-Backed Securities (cost of $54,695,509) 54,861,317 84 | See Accompanying Notes to Financial Statements. ________________________________________________________________________________ AUGUST 31, 2005 COLUMBIA SHORT TERM BOND FUND PAR ($) VALUE ($) - -------------------------------------------------------------------------- GOVERNMENT AGENCIES & OBLIGATIONS - 11.2% FOREIGN GOVERNMENT OBLIGATIONS - 2.2% Canadian Government Bond 6.750% 08/28/06 1,000,000 1,027,820 Province of Ontario 3.500% 09/17/07 3,500,000 3,458,350 Province of Quebec 6.500% 01/17/06 1,100,000 1,110,780 Republic of Italy 2.500% 03/31/06 1,950,000 1,931,533 United Mexican States 4.625% 10/08/08 2,000,000 2,004,000 ----------- FOREIGN GOVERNMENT OBLIGATIONS TOTAL 9,532,483 U.S. GOVERNMENT AGENCIES & OBLIGATIONS - 9.0% A.I.D. Morocco 4.031% 05/01/23(a) 450,000 446,985 Federal Home Loan Bank 3.000% 05/15/06(e) 500,000 496,831 U.S. Treasury Inflation Index Note 3.625% 01/15/08 16,969,111 17,995,879 U.S. Treasury Note 3.375% 10/15/09 19,270,000 18,919,228 ----------- U.S. GOVERNMENT AGENCIES & OBLIGATIONS TOTAL 37,858,923 Total Government Agencies & Obligations (cost of $47,846,324) 47,391,406 COMMERCIAL MORTGAGE-BACKED SECURITIES - 3.4% CS First Boston Mortgage Securities Corp. 6.480% 05/17/40 4,913,607 5,127,250 LB-UBS Commercial Mortgage Trust 5.642% 12/15/25 1,981,406 2,026,404 Nationslink Funding Corp. 6.888% 11/10/30 2,630,000 2,748,166 Prudential Securities Secured Financing Corp. 6.480% 11/01/31 4,314,211 4,498,686 ----------- Total Commercial Mortgage-Backed Securities (cost of $14,529,479) 14,400,506 PAR ($) VALUE ($) - -------------------------------------------------------------------------- SHORT-TERM OBLIGATION - 1.5% Repurchase agreement with State Street Bank & Trust Co., dated 08/31/05, due 09/01/05 at 3.430%, collateralized by a U.S. Treasury Bond maturing 08/15/13, market value of $6,420,219 (repurchase proceeds $6,291,599) 6,291,000 6,291,000 ----------- Total Short-Term Obligation (cost of $6,291,000) 6,291,000 TOTAL INVESTMENTS - 99.7% (COST OF $423,317,223) (f) 421,235,309 OTHER ASSETS & LIABILITIES, NET - 0.3% 1,279,682 NET ASSETS - 100.0% 422,514,991 NOTES TO INVESTMENT PORTFOLIO: (a) The interest rate shown on floating rate or variable rate securities reflects the rate at August 31, 2005. (b) Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At August 31, 2005, these securities, which did not include any illiquid securities, amounted to $6,054,059, which represents 1.4% of net assets. (c) Zero coupon bond. (d) Investments in affiliates during the year ended August 31, 2005: Security name: Bank of America Mortgage Securities 5.250% 02/25/18 Par as of 08/31/04: $ 2,252,966 Par purchased: $ -- Par sold: $ (753,522) Par as of 08/31/05: $ 1,499,444 Net realized gain/loss: $ -- Interest income earned: $ 94,868 Value at end of period: $ 1,496,161 (e) Security pledged as collateral for open futures contracts. (f) Cost for federal income tax purposes is $423,165,126. At August 31, 2005, the Fund held the following open short futures contract: NUMBER OF AGGREGATE EXPIRATION UNREALIZED TYPE CONTRACTS VALUE FACE VALUE DATE DEPRECIATION ---------------------------------------------------------------------- 2-Year U.S. Treasury Notes 225 $46,596,094 $46,560,938 Dec-2005 $(35,156) At August 31, 2005, the asset allocation of the Fund is as follows: % OF ASSET ALLOCATION (UNAUDITED) NET ASSETS ---------------------------------------------------------- Corporate Fixed-Income Bonds & Notes 33.1% Mortgage-Backed Securities 21.3 Collateralized Mortgage Obligations 16.2 Asset-Backed Securities 13.0 Government Agencies & Obligations 11.2 Commercial Mortgage-Backed Securities 3.4 Short-Term Obligation 1.5 Other Assets & Liabilities, Net 0.3 ----- 100.0% ===== See Accompanying Notes to Financial Statements. | 85 INVESTMENT PORTFOLIO____________________________________________________________ AUGUST 31, 2005 COLUMBIA FIXED INCOME SECURITIES FUND PAR ($) VALUE ($) - -------------------------------------------------------------------------- MORTGAGE-BACKED SECURITIES - 39.4% AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS - 20.8% Federal Home Loan Mortgage Corp. 4.000% 09/15/15 6,775,000 6,708,376 4.000% 10/15/18 9,300,000 8,892,984 4.000% 10/15/26 7,720,000 7,659,526 4.500% 03/15/18 5,090,000 5,075,112 4.500% 10/15/18 3,166,000 3,175,817 4.500% 02/15/27 2,050,000 2,045,312 4.500% 07/15/27 6,880,000 6,864,271 4.500% 08/15/28 2,430,000 2,404,911 6.000% 06/15/31 3,392,458 3,450,427 6.500% 10/15/23 510,000 540,278 6.500% 11/15/30 986,160 994,806 Federal National Mortgage Association 4.500% 11/25/14 2,050,000 2,058,285 Government National Mortgage Association 4.500% 04/16/28 2,090,000 2,092,853 ----------- AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS TOTAL 51,962,958 MORTGAGE-BACKED SECURITIES - 18.6% Federal Home Loan Mortgage Corp. 3.500% 10/01/18 4,589,027 4,323,889 5.500% 12/01/17 356,514 364,433 5.500% 12/01/18 2,021,308 2,066,310 5.500% 07/01/19 1,640,539 1,676,864 5.500% 09/01/34 4,431,766 4,482,169 5.500% 08/01/35 4,856,000 4,911,344 6.000% 05/01/17 3,458,457 3,568,480 Federal National Mortgage Association 5.000% 03/01/18 4,574,121 4,610,171 5.000% 06/01/18 587,147 591,775 5.000% 07/01/18 1,611,489 1,624,190 5.000% 08/01/18 2,494,412 2,514,071 5.000% 10/01/18 4,813,354 4,851,289 5.000% 11/01/19 1,575,919 1,588,130 5.000% 12/01/19 882,202 888,855 5.000% 01/01/20 1,660,177 1,672,750 5.000% 05/01/20 1,902,741 1,917,152 5.000% 06/01/20 2,680,247 2,700,546 5.000% 07/01/20 983,500 990,949 5.950% 06/01/32(a) 56,616 56,964 6.089% 07/01/32(a) 901,572 899,234 ----------- MORTGAGE-BACKED SECURITIES TOTAL 46,299,565 Total Mortgage-Backed Securities (cost of $97,627,100) 98,262,523 PAR ($) VALUE ($) - -------------------------------------------------------------------------- CORPORATE FIXED-INCOME BONDS & NOTES - 33.9% BASIC MATERIALS - 1.0% CHEMICALS - 0.1% Airgas, Inc. 9.125% 10/01/11 140,000 151,200 EquiStar Chemicals LP 10.125% 09/01/08 25,000 27,531 10.625% 05/01/11 100,000 110,750 Nalco Co. 7.750% 11/15/11 75,000 78,750 ----------- Chemicals Total 368,231 FOREST PRODUCTS & PAPER - 0.3% Boise Cascade LLC 7.125% 10/15/14 200,000 196,000 International Paper Co. 4.250% 01/15/09 510,000 504,645 ----------- Forest Products & Paper Total 700,645 IRON/STEEL - 0.1% Russel Metals, Inc. 6.375% 03/01/14 135,000 129,938 ----------- Iron/Steel Total 129,938 METALS & MINING - 0.5% Alcan, Inc. 4.500% 05/15/13 1,200,000 1,175,676 ----------- Metals & Mining Total 1,175,676 ----------- BASIC MATERIALS TOTAL 2,374,490 COMMUNICATIONS - 4.0% ADVERTISING - 0.1% Lamar Media Corp. 7.250% 01/01/13 225,000 236,813 ----------- Advertising Total 236,813 MEDIA - 1.4% Comcast Corp. 7.050% 03/15/33 870,000 1,016,168 Dex Media West LLC 5.875% 11/15/11 170,000 166,600 DirecTV Holdings LLC 8.375% 03/15/13 159,000 174,502 EchoStar DBS Corp. 5.750% 10/01/08 270,000 267,300 6.625% 10/01/14 55,000 54,519 Emmis Operating Co. 6.875% 05/15/12 75,000 75,375 LIN Television Corp. 6.500% 05/15/13 200,000 191,000 R.H. Donnelley Finance Corp. 10.875% 12/15/12(b) 145,000 167,475 10.875% 12/15/12 75,000 86,625 86 | See Accompanying Notes to Financial Statements. ________________________________________________________________________________ AUGUST 31, 2005 COLUMBIA FIXED INCOME SECURITIES FUND PAR ($) VALUE ($) - -------------------------------------------------------------------------- CORPORATE FIXED-INCOME BONDS & NOTES - (CONTINUED) COMMUNICATIONS - (CONTINUED) MEDIA - (CONTINUED) Rogers Cable, Inc. 7.875% 05/01/12 255,000 276,994 Time Warner, Inc. 6.625% 05/15/29 910,000 990,053 ----------- Media Total 3,466,611 TELECOMMUNICATION SERVICES - 2.5% Cingular Wireless Services, Inc. 8.750% 03/01/31 500,000 705,550 Deutsche Telekom International Finance BV 8.500% 06/15/10 890,000 1,019,531 Nextel Communications, Inc. 7.375% 08/01/15 350,000 377,562 Rogers Wireless, Inc. 7.500% 03/15/15 30,000 32,700 8.000% 12/15/12 65,000 69,550 Sprint Capital Corp. 6.875% 11/15/28 950,000 1,096,813 Verizon Global Funding Corp. 7.750% 12/01/30 1,700,000 2,188,223 Vodafone Group PLC 7.750% 02/15/10 700,000 793,065 ----------- Telecommunication Services Total 6,282,994 ----------- COMMUNICATIONS TOTAL 9,986,418 CONSUMER CYCLICAL - 2.2% AUTO MANUFACTURERS - 0.3% DaimlerChrysler NA Holding Corp. 8.500% 01/18/31 500,000 627,965 ----------- Auto Manufacturers Total 627,965 ENTERTAINMENT - 0.2% Cinemark USA, Inc. 9.000% 02/01/13 185,000 196,100 Speedway Motorsports, Inc. 6.750% 06/01/13 190,000 196,650 Warner Music Group 7.375% 04/15/14 110,000 111,925 ----------- Entertainment Total 504,675 HOME BUILDERS - 0.1% K. Hovnanian Enterprises, Inc. 6.000% 01/15/10 40,000 39,100 6.375% 12/15/14 50,000 49,000 6.500% 01/15/14 30,000 29,625 KB Home 8.625% 12/15/08 125,000 135,000 ----------- Home Builders Total 252,725 PAR ($) VALUE ($) - -------------------------------------------------------------------------- LEISURE TIME - 0.1% Royal Caribbean Cruises Ltd. 6.750% 03/15/08 80,000 82,600 6.875% 12/01/13 100,000 106,500 8.750% 02/02/11 155,000 175,925 ----------- Leisure Time Total 365,025 LODGING - 0.5% Caesars Entertainment, Inc. 7.875% 03/15/10 90,000 99,337 8.875% 09/15/08 25,000 27,594 9.375% 02/15/07 70,000 74,288 ITT Corp. 6.750% 11/15/05 70,000 70,263 Kerzner International Ltd. 8.875% 08/15/11 150,000 160,125 MGM Mirage 6.000% 10/01/09 265,000 265,000 8.500% 09/15/10 35,000 38,500 Starwood Hotels & Resorts Worldwide, Inc. 7.875% 05/01/12 105,000 116,550 Station Casinos, Inc. 6.875% 03/01/16 375,000 383,437 Wynn Las Vegas LLC 6.625% 12/01/14 145,000 140,831 ----------- Lodging Total 1,375,925 RETAIL - 1.0% AutoNation, Inc. 9.000% 08/01/08 200,000 221,500 Couche-Tard 7.500% 12/15/13 170,000 176,800 Domino's, Inc. 8.250% 07/01/11 50,000 53,500 Group 1 Automotive, Inc. 8.250% 08/15/13 80,000 82,000 Lowe's Companies, Inc. 6.500% 03/15/29 1,510,000 1,768,195 Suburban Propane Partners LP 6.875% 12/15/13 100,000 96,750 ----------- Retail Total 2,398,745 ----------- CONSUMER CYCLICAL TOTAL 5,525,060 CONSUMER NON-CYCLICAL - 3.9% BEVERAGES - 1.4% Anheuser-Busch Companies, Inc. 5.750% 04/01/10 530,000 556,638 Constellation Brands, Inc. 8.000% 02/15/08 350,000 368,375 Cott Beverages, Inc. 8.000% 12/15/11 345,000 363,112 Pepsi Bottling Holdings, Inc. 5.625% 02/17/09(b) 2,050,000 2,134,829 ----------- Beverages Total 3,422,954 See Accompanying Notes to Financial Statements. | 87 ________________________________________________________________________________ AUGUST 31, 2005 COLUMBIA FIXED INCOME SECURITIES FUND PAR ($) VALUE ($) - -------------------------------------------------------------------------- CORPORATE FIXED-INCOME BONDS & NOTES - (CONTINUED) CONSUMER NON-CYCLICAL - (CONTINUED) COMMERCIAL SERVICES - 0.2% Corrections Corp. of America 6.250% 03/15/13 65,000 64,188 7.500% 05/01/11 210,000 216,300 Iron Mountain, Inc. 8.625% 04/01/13 255,000 267,750 United Rentals, Inc. 7.750% 11/15/13 85,000 82,875 ----------- Commercial Services Total 631,113 FOOD - 1.1% General Mills, Inc. 2.625% 10/24/06 915,000 899,033 Kroger Co. 7.650% 04/15/07 700,000 735,504 Safeway, Inc. 4.950% 08/16/10 1,145,000 1,149,477 ----------- Food Total 2,784,014 HEALTHCARE SERVICES - 1.0% Extendicare Health Services, Inc. 6.875% 05/01/14 65,000 64,025 9.500% 07/01/10 15,000 15,863 Fisher Scientific International, Inc. 6.750% 08/15/14 115,000 120,175 HCA, Inc. 6.950% 05/01/12 235,000 247,765 Triad Hospitals, Inc. 7.000% 05/15/12 250,000 258,750 UnitedHealth Group, Inc. 3.375% 08/15/07 1,000,000 985,370 WellPoint, Inc. 6.800% 08/01/12 800,000 901,152 ----------- Healthcare Services Total 2,593,100 HOUSEHOLD PRODUCTS/WARES - 0.1% Scotts Co. 6.625% 11/15/13 175,000 180,250 ----------- Household Products/Wares Total 180,250 PHARMACEUTICALS - 0.1% AmerisourceBergen Corp. 8.125% 09/01/08 115,000 125,925 Omnicare, Inc. 8.125% 03/15/11 90,000 94,050 ----------- Pharmaceuticals Total 219,975 ----------- CONSUMER NON-CYCLICAL TOTAL 9,831,406 PAR ($) VALUE ($) - -------------------------------------------------------------------------- ENERGY - 2.6% COAL - 0.2% Arch Western Finance LLC 6.750% 07/01/13 210,000 214,725 Peabody Energy Corp. 6.875% 03/15/13 340,000 354,450 ----------- Coal Total 569,175 OIL & GAS - 2.1% Chesapeake Energy Corp. 6.375% 06/15/15 65,000 66,138 7.500% 09/15/13 320,000 344,800 Devon Energy Corp. 7.950% 04/15/32 775,000 1,030,874 Marathon Oil Corp. 6.800% 03/15/32 1,000,000 1,186,880 Newfield Exploration Co. 6.625% 09/01/14 240,000 250,800 Occidental Petroleum Corp. 4.250% 03/15/10 1,825,000 1,815,382 Plains Exploration & Production Co. 7.125% 06/15/14 170,000 181,475 Pride International, Inc. 7.375% 07/15/14 205,000 221,400 Vintage Petroleum, Inc. 7.875% 05/15/11 150,000 157,500 8.250% 05/01/12 25,000 26,875 ----------- Oil & Gas Total 5,282,124 OIL & GAS SERVICES - 0.1% Hornbeck Offshore Services, Inc. 6.125% 12/01/14 100,000 100,250 Universal Compression, Inc. 7.250% 05/15/10 190,000 198,550 ----------- Oil & Gas Services Total 298,800 PIPELINES - 0.2% MarkWest Energy Partners LP 6.875% 11/01/14(b) 90,000 90,675 Williams Companies, Inc. 7.125% 09/01/11 30,000 31,800 8.125% 03/15/12 195,000 217,425 ----------- Pipelines Total 339,900 ----------- ENERGY TOTAL 6,489,999 FINANCIALS - 11.2% BANKS - 2.9% Marshall & Ilsley Corp. 4.375% 08/01/09 1,330,000 1,335,427 US Bank NA 6.375% 08/01/11 1,150,000 1,265,322 Wachovia Corp. 4.875% 02/15/14 2,145,000 2,163,790 88 | See Accompanying Notes to Financial Statements. ________________________________________________________________________________ AUGUST 31, 2005 COLUMBIA FIXED INCOME SECURITIES FUND PAR ($) VALUE ($) - -------------------------------------------------------------------------- CORPORATE FIXED-INCOME BONDS & NOTES - (CONTINUED) FINANCIALS - (CONTINUED) BANKS - (CONTINUED) Wells Fargo & Co. 3.419% 03/10/08(a) 2,400,000 2,400,360 ----------- Banks Total 7,164,899 DIVERSIFIED FINANCIAL SERVICES - 6.6% American General Finance Corp. 5.375% 09/01/09 850,000 876,877 Capital One Bank 4.875% 05/15/08 725,000 734,222 CIT Group, Inc. 4.125% 02/21/06 1,060,000 1,060,042 Citigroup, Inc. 5.000% 09/15/14 2,655,000 2,729,234 Countrywide Home Loans, Inc. 2.875% 02/15/07 1,000,000 979,770 Goldman Sachs Group, Inc. 6.345% 02/15/34 1,550,000 1,676,449 Household Finance Corp. 6.400% 06/17/08 1,850,000 1,947,846 JPMorgan Chase Capital XV 5.875% 03/15/35 1,925,000 1,962,210 Lehman Brothers Holdings, Inc. 4.000% 01/22/08 1,000,000 994,670 Merrill Lynch & Co., Inc. 4.125% 01/15/09 885,000 878,000 Morgan Stanley 4.750% 04/01/14 730,000 722,014 SLM Corp. 5.125% 08/27/12 2,000,000 2,062,100 ----------- Diversified Financial Services Total 16,623,434 INSURANCE - 1.2% Allstate Financial Global Funding II 2.625% 10/22/06(b) 1,500,000 1,472,325 Genworth Financial, Inc. 4.750% 06/15/09 1,500,000 1,513,860 ----------- Insurance Total 2,986,185 REAL ESTATE INVESTMENT TRUSTS - 0.5% Health Care Property Investors, Inc. 6.450% 06/25/12 910,000 978,295 iStar Financial, Inc. 5.125% 04/01/11 175,000 174,454 ----------- Real Estate Investment Trusts Total 1,152,749 ----------- FINANCIALS TOTAL 27,927,267 INDUSTRIALS - 5.7% AEROSPACE & DEFENSE - 1.4% L-3 Communications Corp. 6.125% 07/15/13 5,000 5,050 7.625% 06/15/12 330,000 349,800 PAR ($) VALUE ($) - -------------------------------------------------------------------------- Lockheed Martin Corp. 8.500% 12/01/29 675,000 970,353 TransDigm, Inc. 8.375% 07/15/11 175,000 185,062 United Technologies Corp. 7.125% 11/15/10 1,900,000 2,140,692 ----------- Aerospace & Defense Total 3,650,957 AUTO MANUFACTURERS - 0.7% Ford Motor Credit Co. 7.375% 10/28/09 1,755,000 1,747,102 ----------- Auto Manufacturers Total 1,747,102 ENVIRONMENTAL CONTROL - 0.7% Allied Waste North America, Inc. 6.375% 04/15/11 180,000 173,250 Waste Management, Inc. 7.375% 08/01/10 1,330,000 1,482,897 ----------- Environmental Control Total 1,656,147 HAND/MACHINE TOOLS - 0.1% Kennametal, Inc. 7.200% 06/15/12 165,000 182,756 ----------- Hand/Machine Tools Total 182,756 MACHINERY-DIVERSIFIED - 0.1% Manitowoc Co., Inc. 7.125% 11/01/13 10,000 10,438 Westinghouse Air Brake Technologies Corp. 6.875% 07/31/13 200,000 207,000 ----------- Machinery-Diversified Total 217,438 MISCELLANEOUS MANUFACTURING - 1.2% General Electric Co. 5.000% 02/01/13 2,875,000 2,950,411 ----------- Miscellaneous Manufacturing Total 2,950,411 PACKAGING & CONTAINERS - 0.4% Ball Corp. 7.750% 08/01/06 375,000 383,437 Owens-Brockway Glass Container, Inc. 6.750% 12/01/14 25,000 24,938 Owens-Illinois, Inc. 7.500% 05/15/10 185,000 191,475 Silgan Holdings, Inc. 6.750% 11/15/13 285,000 291,056 Smurfit-Stone Container Corp. 9.750% 02/01/11 140,000 145,950 Stone Container Finance 7.375% 07/15/14 75,000 71,063 ----------- Packaging & Containers Total 1,107,919 See Accompanying Notes to Financial Statements. | 89 ________________________________________________________________________________ AUGUST 31, 2005 COLUMBIA FIXED INCOME SECURITIES FUND PAR ($) VALUE ($) - -------------------------------------------------------------------------- CORPORATE FIXED-INCOME BONDS & NOTES - (CONTINUED) INDUSTRIALS - (CONTINUED) TRANSPORTATION - 1.1% Canadian National Railway Co. 7.195% 01/02/16 1,213,490 1,448,264 Offshore Logistics, Inc. 6.125% 06/15/13 205,000 200,900 Teekay Shipping Corp. 8.875% 07/15/11 305,000 349,606 Union Pacific Corp. 3.875% 02/15/09 790,000 776,143 ----------- Transportation Total 2,774,913 ----------- INDUSTRIALS TOTAL 14,287,643 TECHNOLOGY - 0.4% COMPUTERS - 0.3% International Business Machines Corp. 5.875% 11/29/32 700,000 781,732 ----------- Computers Total 781,732 SEMICONDUCTORS - 0.1% Freescale Semiconductor, Inc. 6.875% 07/15/11 175,000 183,750 ----------- Semiconductors Total 183,750 ----------- TECHNOLOGY TOTAL 965,482 UTILITIES - 2.9% ELECTRIC - 2.0% AES Corp. 7.750% 03/01/14 110,000 119,075 CenterPoint Energy Houston Electric LLC 5.750% 01/15/14 900,000 960,318 Exelon Generation Co. 6.950% 06/15/11 800,000 891,344 Nevada Power Co. 5.875% 01/15/15(b) 50,000 50,250 6.500% 04/15/12 40,000 41,200 NorthWestern Corp. 5.875% 11/01/14(b) 10,000 10,250 Scottish Power PLC 4.910% 03/15/10 1,300,000 1,315,249 Virginia Electric & Power Co. 5.375% 02/01/07 1,480,000 1,499,980 ----------- Electric Total 4,887,666 PAR ($) VALUE ($) - -------------------------------------------------------------------------- GAS - 0.9% Kinder Morgan Energy Partners LP 7.300% 08/15/33 1,200,000 1,465,128 Sempra Energy 4.750% 05/15/09 750,000 753,240 ----------- Gas Total 2,218,368 ----------- UTILITIES TOTAL 7,106,034 Total Corporate Fixed-Income Bonds & Notes (cost of $81,626,198) 84,493,799 GOVERNMENT AGENCIES & OBLIGATIONS - 11.6% FOREIGN GOVERNMENT OBLIGATIONS - 2.3% Province of Quebec 7.000% 01/30/07 1,490,000 1,548,199 Republic of Italy 2.500% 03/31/06 2,750,000 2,723,958 United Mexican States 7.500% 04/08/33 1,250,000 1,462,500 ----------- FOREIGN GOVERNMENT OBLIGATIONS TOTAL 5,734,657 U.S. GOVERNMENT AGENCIES & OBLIGATIONS - 9.3% Federal Home Loan Bank 2.250% 09/13/05 3,060,000 3,058,464 3.000% 05/15/06 350,000 347,782 U.S. Treasury Bond 6.250% 08/15/23 6,080,000 7,533,977 U.S. Treasury Inflation Index Note 3.625% 01/15/08 7,933,767 8,413,823 U.S. Treasury Note 4.250% 11/15/13 3,700,000 3,765,616 ----------- U.S. GOVERNMENT AGENCIES & OBLIGATIONS TOTAL 23,119,662 Total Government Agencies & Obligations (cost of $28,588,095) 28,854,319 COLLATERALIZED MORTGAGE OBLIGATIONS - 5.7% Bear Stearns Asset Backed Securities, Inc. 5.000% 01/25/34 3,997,369 3,968,148 Countrywide Alternative Loan Trust 4.041% 03/25/34(a) 3,214,072 3,209,602 Countrywide Home Loans Mortgage Pass Through Trust 4.600% 12/19/33(a) 3,633,676 3,537,165 Structured Asset Securities Corp. 5.500% 07/25/33 3,529,029 3,573,326 ----------- Total Collateralized Mortgage Obligations (cost of $14,342,050) 14,288,241 90 | See Accompanying Notes to Financial Statements. ________________________________________________________________________________ AUGUST 31, 2005 COLUMBIA FIXED INCOME SECURITIES FUND PAR ($) VALUE ($) - -------------------------------------------------------------------------- ASSET-BACKED SECURITIES - 3.3% Cityscape Home Equity Loan Trust 7.940% 10/25/18 415,527 414,746 ContiMortgage Home Equity Trust 7.680% 12/25/29 1,021,911 1,022,575 Federal National Mortgage Association Whole Loan 7.800% 06/25/26 376,381 390,082 IMC Home Equity Loan Trust 7.310% 11/20/28 3,585,610 3,583,961 7.500% 04/25/26 878,450 888,983 7.520% 08/20/28 1,459,258 1,457,478 New Century Home Equity Loan Trust 7.320% 07/25/29 82,466 84,289 Salomon Brothers Mortgage Securities VII 7.150% 06/25/28 404,701 401,545 ----------- Total Asset-Backed Securities (cost of $8,213,877) 8,243,659 COMMERCIAL MORTGAGE-BACKED SECURITIES - 1.3% Nationslink Funding Corp. 6.888% 11/10/30 3,120,000 3,260,181 ----------- Total Commercial Mortgage-Backed Securities (cost of $3,350,872) 3,260,181 SHORT-TERM OBLIGATIONS - 3.1% U.S. GOVERNMENT AGENCY - 1.6% Federal National Mortgage Association 3.440% 09/14/05(c) 4,000,000 3,995,464 ----------- REPURCHASE AGREEMENT - 1.5% Repurchase agreement with State Street Bank & Trust Co., dated 08/31/05, due 09/01/05 at 3.430%, collateralized by U.S. Treasury Notes with various maturities to 05/15/14, market value of $3,939,825 (repurchase proceeds $3,858,368) 3,858,000 3,858,000 ----------- Total Short-Term Obligations (cost of $7,853,464) 7,853,464 TOTAL INVESTMENTS - 98.3% (COST OF $241,601,656) (d) 245,256,186 OTHER ASSETS & LIABILITIES, NET - 1.7% 4,336,959 NET ASSETS - 100.0% 249,593,145 - -------------------------------------------------------------------------- NOTES TO INVESTMENT PORTFOLIO: (a) The interest rate shown on floating rate or variable rate securities reflects the rate at August 31, 2005. (b) Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At August 31, 2005, these securities, which did not include any illiquid securities, amounted to $3,925,804, which represents 1.6% of net assets. (c) The rate shown represents the annualized yield at the date of purchase. (d) Cost for federal income tax purposes is $242,382,370. At August 31, 2005, the asset allocation of the Fund is as follows: % OF ASSET ALLOCATION (UNAUDITED) NET ASSETS ------------------------------------------------------------------- Mortgage-Backed Securities 39.4% Corporate Fixed-Income Bonds & Notes 33.9 Government Agencies & Obligations 11.6 Collateralized Mortgage Obligations 5.7 Asset-Backed Securities 3.3 Commercial Mortgage-Backed Securities 1.3 Short-Term Obligations 3.1 Other Assets & Liabilities, Net 1.7 ----- 100.0% ===== See Accompanying Notes to Financial Statements. | 91 INVESTMENT PORTFOLIO____________________________________________________________ AUGUST 31, 2005 COLUMBIA OREGON INTERMEDIATE MUNICIPAL BOND FUND PAR ($) VALUE ($) - -------------------------------------------------------------------------- MUNICIPAL BONDS - 97.9% EDUCATION - 5.9% EDUCATION - 5.9% OR Facilities Authority, Linfield College Project, Series A, 5.000% 10/01/20 1,825,000 1,930,102 OR Health Sciences University, Series A, Insured: MBIA: (a) 07/01/09 1,530,000 1,347,654 (a) 07/01/12 1,315,000 1,022,899 (a) 07/01/14 2,550,000 1,809,735 (a) 07/01/15 4,325,000 2,927,073 (a) 07/01/21 12,515,000 6,341,476 OR Health, Housing, Educational & Cultural Facilities Authority: Linfield College Project, Series A: 4.650% 10/01/09 555,000 574,159 5.500% 10/01/18 1,000,000 1,040,690 Reed College Project, Series A: 5.300% 07/01/11 500,000 518,450 Insured: MBIA 5.100% 07/01/10 900,000 956,286 OR Multnomah County Educational Facilities Authority: University of Portland Project: 5.700% 04/01/15 1,000,000 1,062,120 6.000% 04/01/20 1,000,000 1,077,750 6.000% 04/01/25 500,000 532,220 Refunding, Insured: AMBAC: 5.000% 04/01/11 1,150,000 1,205,568 5.750% 04/01/10 2,000,000 2,120,600 ----------- Education Total 24,466,782 ----------- EDUCATION TOTAL 24,466,782 HEALTH CARE - 12.0% CONTINUING CARE RETIREMENT - 0.7% OR Albany Hospital Facility Authority, Mennonite Home Albany, Series PJ-A: 4.750% 10/01/11 660,000 690,941 5.000% 10/01/12 680,000 721,086 OR Clackamas County Hospital Facility Authority, Willamette View, Inc. Project, Series A, 6.850% 11/01/15 1,480,000 1,593,708 ----------- Continuing Care Retirement Total 3,005,735 PAR ($) VALUE ($) - -------------------------------------------------------------------------- HOSPITALS - 11.1% OR Benton County Hospital Facilities Authority, Samaritan Health Services Project, Refunding: 4.400% 10/01/07 220,000 224,629 4.800% 10/01/11 245,000 254,727 5.200% 10/01/17 2,255,000 2,342,246 OR Clackamas County Hospital Facility Authority: Legacy Health System: 4.600% 05/01/10 885,000 928,878 5.000% 02/15/16 1,010,000 1,057,500 5.500% 02/15/13 5,450,000 5,838,313 5.500% 02/15/14 2,385,000 2,554,931 5.750% 05/01/12 2,000,000 2,233,460 Legacy Health System, IBC: Insured: MBIA 5.500% 02/15/13 495,000 537,110 Refunding: 5.250% 05/01/21 4,890,000 5,218,021 5.750% 05/01/16 1,500,000 1,650,225 OR Deschutes County Hospital Facilities Authority, Cascade Health Services, Inc.: 5.500% 01/01/22 2,000,000 2,142,000 5.600% 01/01/27 5,550,000 5,942,163 5.600% 01/01/32 2,000,000 2,134,460 OR Medford Hospital Facilities Authority, Asante Health System, Series A, Insured: MBIA: 5.250% 08/15/10 1,500,000 1,597,065 5.250% 08/15/11 800,000 849,672 OR Multnomah County Hospital Facilities Authority Revenue, Providence Health System, 5.250% 10/01/16 2,970,000 3,286,067 OR Salem Hospital Facility Authority: 5.000% 08/15/18 2,000,000 2,083,340 5.250% 08/15/14 4,860,000 5,118,163 OR Umatilla County Hospital Facility Authority, Catholic Health Initiatives, Series A, 5.750% 12/01/20 285,000 312,351 ----------- Hospitals Total 46,305,321 NURSING HOMES - 0.2% OR Clackamas County Hospital Facility Authority, Odd Fellows Home, Series A, Refunding, 5.875% 09/15/21 705,000 672,577 ----------- Nursing Homes Total 672,577 ----------- HEALTH CARE TOTAL 49,983,633 92 | See Accompanying Notes to Financial Statements. ________________________________________________________________________________ AUGUST 31, 2005 COLUMBIA OREGON INTERMEDIATE MUNICIPAL BOND FUND PAR ($) VALUE ($) - -------------------------------------------------------------------------- MUNICIPAL BONDS - (CONTINUED) HOUSING - 4.8% ASSISTED LIVING/SENIOR - 0.4% OR Clackamas County Hospital Facility Authority, Robison Jewish Home Project, 6.250% 10/01/21 1,650,000 1,670,625 ----------- Assisted Living/Senior Total 1,670,625 MULTI-FAMILY - 2.1% OR Clackamas County Housing Authority, Multi-Family Housing, Easton Ridge, Series A, 5.800% 12/01/16 2,255,000 2,279,557 OR Housing & Community Services Department, Multiple Purpose, Series A, Insured: FSA: 3.550% 01/01/13 1,000,000 1,006,400 3.550% 07/01/13 1,000,000 1,004,730 3.650% 01/01/14 1,000,000 1,007,120 3.650% 07/01/14 1,000,000 1,005,980 OR Washington County Housing Authority, Affordable Housing Pool, Series A: 5.750% 07/01/23 1,000,000 1,034,640 6.000% 07/01/23 1,000,000 1,040,150 PR Housing Finance Corp., Multi-Family Mortgage, Portfolio A-1, Insured: FHA 7.500% 04/01/22 565,000 566,797 ----------- Multi-Family Total 8,945,374 SINGLE-FAMILY - 2.3% OR Housing & Community Services, Department Mortgage Single Family Program: Series A, 4.850% 07/01/10 135,000 141,033 Series D, 6.700% 07/01/13 370,000 370,636 Series E: 5.375% 07/01/21 2,960,000 3,082,988 Insured: FHA: 5.700% 07/01/12 560,000 563,097 5.800% 07/01/14 500,000 502,930 6.000% 07/01/20 1,390,000 1,413,964 Series J, 5.150% 07/01/24 1,950,000 2,014,623 Series M, AMT, 5.800% 07/01/12 190,000 199,823 Series Q: 4.700% 07/01/15 595,000 614,980 4.900% 07/01/17 585,000 605,223 PAR ($) VALUE ($) - -------------------------------------------------------------------------- OR Housing Finance Revenue, Insured: FHA 5.800% 07/01/09 150,000 151,056 ----------- Single-Family Total 9,660,353 ----------- HOUSING TOTAL 20,276,352 OTHER - 26.1% OTHER - 0.9% OR Health, Housing, Educational & Cultural Facilities Authority, Goodwill Industries Lane County, Series A, 6.650% 11/15/22(b) 3,750,000 3,781,013 ----------- Other Total 3,781,013 POOL/BOND BANK - 0.3% OR Economic Community Development Department, Series A, Insured: MBIA 5.375% 01/01/11 1,105,000 1,183,499 ----------- Pool/Bond Bank Total 1,183,499 REFUNDED/ESCROWED (C) - 24.9% OR Board of Higher Education: Lottery Education Project, Series A: Pre-refunded 04/01/09, Insured: FSA 5.250% 04/01/13 1,600,000 1,731,808 Pre-refunded 04/01/11, Insured: FSA 5.000% 04/01/14 2,705,000 2,943,419 Series A, Pre-refunded 08/01/11: 5.250% 08/01/14 1,225,000 1,345,711 5.250% 08/01/16 4,550,000 4,998,357 OR City Sewer, Pre-refunded 10/01/05, 6.500% 10/01/07 390,000 393,693 OR Clackamas County Hospital Facility Authority, Kaiser Permanente, Series A, Escrowed to Maturity, 5.375% 04/01/14 7,135,000 7,712,364 See Accompanying Notes to Financial Statements. | 93 ________________________________________________________________________________ AUGUST 31, 2005 COLUMBIA OREGON INTERMEDIATE MUNICIPAL BOND FUND PAR ($) VALUE ($) - -------------------------------------------------------------------------- MUNICIPAL BONDS - (CONTINUED) OTHER - (CONTINUED) REFUNDED/ESCROWED (C) - (CONTINUED) OR Clackamas County: School District No. 086, Pre-refunded 06/15/10, 6.000% 06/15/16 2,350,000 2,641,212 School District No. 108, Insured: FSA 5.375% 06/15/15 1,055,000 1,170,850 School District No. 12, North Clackamas, Pre-refunded 06/01/09, Insured: FGIC: 5.250% 06/01/11 1,000,000 1,075,880 5.250% 06/01/15 2,750,000 2,958,670 School District No. 62C, Pre-refunded 06/15/10, 5.375% 06/15/17 1,250,000 1,370,462 School District No. 7J, Lake Oswega, Pre-refunded 06/01/11: 5.375% 06/01/15 2,450,000 2,717,809 5.375% 06/01/16 1,295,000 1,436,556 5.375% 06/01/17 2,535,000 2,812,101 OR Coos County, School District No. 13, North Bend, Pre-refunded 06/15/12, Insured: FSA 5.500% 06/15/15 1,765,000 1,988,149 OR Department of Administrative Services, Certificates of Participation, Series A, Pre-refunded 06/01/07, Insured: AMBAC 5.300% 05/01/08 750,000 785,985 OR Department of Transportation, Highway User Tax, Series A, Pre-refunded 11/15/12, 5.500% 11/15/16 2,500,000 2,830,325 OR Deschutes County, Certificates of Participation, Series A, Pre-refunded 06/01/09, 5.050% 06/01/17 420,000 448,148 School District No. 1, Pre-refunded 06/15/11, Series A, Insured: FSA 5.500% 06/15/18 1,000,000 1,116,360 PAR ($) VALUE ($) - -------------------------------------------------------------------------- OR Jackson County: School District No. 4, Phoenix-Talent, Pre-refunded 06/15/11, Insured: FSA 5.500% 06/15/16 1,000,000 1,116,360 School District No. 9, Eagle Point, Pre-refunded 06/15/11, 5.625% 06/15/15 1,920,000 2,155,968 OR Josephine County, School District No. 7, Grants Pass, Pre-refunded 06/01/07, Insured: FGIC 5.700% 06/01/13 2,000,000 2,093,980 OR Linn County Community: School District No. 9: Lebanon, Pre-refunded 06/15/13, Insured: FGIC 5.550% 06/15/21 2,000,000 2,286,380 Pre-refunded 06/15/13, Series 2001, Insured: FGIC 5.250% 06/15/15 405,000 454,163 OR Metro Washington Park Zoo, Pre-refunded 01/15/07, Series A, 5.300% 01/15/11 1,000,000 1,032,390 OR Multnomah County, Certificates of Participation, Pre-refunded 08/01/08, Series 1998, 4.550% 08/01/10 235,000 247,093 OR Multnomah County: School District No. 7, Reynolds, Pre-refunded 06/15/11: 5.625% 06/15/14 2,670,000 2,998,143 5.625% 06/15/17 1,000,000 1,122,900 Series A, Pre-refunded 04/01/10, 5.500% 04/01/19 2,395,000 2,630,165 OR Multnomah-Clackamas Counties, Centennial School District No. 28-302, Pre-refunded 06/15/11, Insured: FGIC: 5.375% 06/15/16 2,055,000 2,280,660 5.375% 06/15/17 2,280,000 2,530,367 5.375% 06/15/18 2,490,000 2,763,427 OR North Clackamas Parks & Recreation District Facilities, Escrowed to Maturity, 5.700% 04/01/13 2,920,000 3,211,387 94 | See Accompanying Notes to Financial Statements. ________________________________________________________________________________ AUGUST 31, 2005 COLUMBIA OREGON INTERMEDIATE MUNICIPAL BOND FUND PAR ($) VALUE ($) - -------------------------------------------------------------------------- MUNICIPAL BONDS - (CONTINUED) OTHER - (CONTINUED) REFUNDED/ESCROWED (C) - (CONTINUED) OR Northern Oregon Corrections, Pre-refunded 09/15/07, Insured: AMBAC: 5.250% 09/15/12 1,000,000 1,045,420 5.300% 09/15/13 1,000,000 1,046,400 OR Portland Arena Gas Tax, Pre-refunded 06/01/06, Insured: FSA: (a) 06/01/16 1,100,000 584,529 (a) 06/01/17 2,320,000 1,153,643 OR Portland Community College District, Series A, Pre-refunded 06/01/11: 5.375% 06/01/14 1,925,000 2,135,422 5.375% 06/01/16 2,705,000 3,000,684 5.375% 06/01/17 2,540,000 2,817,647 OR Powell Valley Water District, Pre-refunded 08/01/09, 6.000% 02/01/15 620,000 683,674 OR Salem Water & Sewer, Pre-refunded 06/01/10, Insured: FSA 5.300% 06/01/15 1,500,000 1,638,615 OR Umatilla County Hospital Facility Authority, Catholic Health Initiatives, Series A, Escrowed to Maturity: 5.750% 12/01/20 245,000 272,244 6.000% 12/01/30 4,825,000 5,402,794 OR Washington & Clackamas Counties, School District No. 23J, Tigard, Pre-refunded 06/15/12, Insured: MBIA 5.375% 06/15/17 1,500,000 1,678,365 OR Washington County: School District No. 15, Forest Grove, Pre-refunded 06/15/11, Insured: FSA: 5.375% 06/15/13 2,070,000 2,297,307 5.375% 06/15/15 2,515,000 2,791,172 School District No. 48J, Beaverton: Pre-refunded 06/01/09, Insured: FGIC 5.100% 06/01/12 500,000 535,305 Pre-refunded 08/01/08, 5.250% 08/01/10 1,150,000 1,220,955 PAR ($) VALUE ($) - -------------------------------------------------------------------------- OR Washington, Multnomah & Yamhill Counties, School District No. 1J: Pre-refunded 06/01/09, 5.250% 06/01/14 500,000 534,230 Pre-refunded 06/01/11, Insured: MBIA 5.000% 06/01/13 1,500,000 1,624,725 OR Yamhill County, School District No. 029J, Pre-refunded 06/15/12, Insured: MBIA 5.250% 06/15/16 2,535,000 2,817,374 VI Virgin Islands Public Finance Authority, Series A, Escrowed to Maturity, 7.300% 10/01/18 1,185,000 1,522,725 ----------- Refunded/Escrowed Total 104,204,472 ----------- OTHER TOTAL 109,168,984 OTHER REVENUE - 2.1% RECREATION - 2.1% OR Board of Higher Education, Lottery Education Project: Series A, Insured: FSA: 5.000% 04/01/14 1,830,000 2,017,703 5.000% 04/01/14 1,000,000 1,108,010 5.250% 04/01/11 4,000,000 4,306,880 Series B, Insured: FSA 5.250% 04/01/15 1,315,000 1,416,347 ----------- Recreation Total 8,848,940 ----------- OTHER REVENUE TOTAL 8,848,940 TAX-BACKED - 36.9% LOCAL APPROPRIATED - 0.5% OR Deschutes & Jefferson County, School District No. 02J, Series B, Insured: FGIC (a) 06/15/22 2,335,000 1,121,150 OR Multnomah County, Certificates of Participation, Series 1998, 4.550% 08/01/10 765,000 799,953 ----------- Local Appropriated Total 1,921,103 See Accompanying Notes to Financial Statements. | 95 ________________________________________________________________________________ AUGUST 31, 2005 COLUMBIA OREGON INTERMEDIATE MUNICIPAL BOND FUND PAR ($) VALUE ($) - -------------------------------------------------------------------------- MUNICIPAL BONDS - (CONTINUED) TAX-BACKED - (CONTINUED) LOCAL GENERAL OBLIGATIONS - 22.0% OR Aurora, 5.600% 06/01/24 1,205,000 1,279,806 OR Bend Municipal Airport Project, Series B, AMT, 5.375% 06/01/13 150,000 158,063 OR Benton & Linn Counties, School District No. 509J, Corvallis, Insured: FSA 5.000% 06/01/17 2,665,000 2,907,702 OR Canyonville South Umpqua Rural Fire District, 5.400% 07/01/31 610,000 618,772 OR Clackamas & Washington Counties, School District No. 003JT, Insured: FGIC (a) 06/15/17 4,000,000 2,446,800 OR Clackamas Community College, Insured: FGIC 5.250% 06/15/15 1,500,000 1,640,505 OR Clackamas County: School District No. 007J, Lake Oswego, Refunding, Insured: FSA 5.250% 06/01/21 2,000,000 2,317,960 School District No. 108, Estacada, Series 2005, Insured: FSA 5.500% 06/15/25 2,485,000 2,998,774 OR Columbia County, School District No. 502, Deferred Interest, Insured: FGIC: (a) 06/01/13 1,685,000 1,255,106 (a) 06/01/14 1,025,000 729,175 OR Coos Bay, 4.900% 09/01/07 1,505,000 1,526,807 OR Crook County, School District, Insured: FSA 5.000% 02/01/14 2,860,000 3,114,168 OR Eugene Public Safety Facilities, 5.500% 06/01/10 850,000 865,938 OR Jackson County: School District No. 009, Series 2005, Insured: MBIA: 5.500% 06/15/20 1,000,000 1,182,180 5.500% 06/15/21 1,410,000 1,675,855 School District No. 6, Central Point, 6.000% 06/15/09 1,090,000 1,201,060 PAR ($) VALUE ($) - -------------------------------------------------------------------------- OR Jefferson County, School District No. 509J, Madras School District, Insured: FGIC 5.250% 06/15/18 1,075,000 1,180,253 OR Josephine County, Unit School District, Three Rivers, Insured: FGIC: 5.000% 12/15/15 1,000,000 1,115,060 5.000% 12/15/16 1,000,000 1,118,040 OR Lane County: School District No. 19, Springfield, Refunding, Insured: FGIC: 6.000% 10/15/12 1,740,000 2,021,932 6.000% 10/15/14 1,310,000 1,557,957 School District No. 4J, Eugene, Refunding: 5.000% 07/01/12 1,000,000 1,098,060 5.250% 07/01/13 1,000,000 1,120,400 OR Lincoln County, School District, Insured: FGIC 5.600% 06/15/10 3,480,000 3,780,011 OR Linn Benton Community College, Insured: FGIC: (a) 06/15/13 1,000,000 743,990 (a) 06/15/14 1,000,000 711,290 OR Linn County, Community School District No. 9, Lebanon, Series 2001, Insured: FGIC 5.250% 06/15/15 305,000 339,340 OR Madras Aquatic Center District, 5.000% 06/01/22 1,695,000 1,785,699 OR Metro, 5.250% 09/01/14 3,130,000 3,462,813 OR Multnomah County, School District No. 40, Insured: FSA 5.000% 12/01/14 1,790,000 1,928,868 OR Multnomah-Clackamas Counties, School District No. 10JT, Series A, Insured: FSA 5.250% 06/15/12 1,000,000 1,112,670 OR Portland Limited Tax, Series B: (a) 06/01/12 1,750,000 1,361,203 (a) 06/01/13 1,500,000 1,114,755 (a) 06/01/16 3,500,000 2,255,365 (a) 06/01/18 4,000,000 2,339,880 (a) 06/01/19 4,000,000 2,228,440 (a) 06/01/20 4,000,000 2,123,360 96 | See Accompanying Notes to Financial Statements. ________________________________________________________________________________ AUGUST 31, 2005 COLUMBIA OREGON INTERMEDIATE MUNICIPAL BOND FUND PAR ($) VALUE ($) - -------------------------------------------------------------------------- MUNICIPAL BONDS - (CONTINUED) TAX-BACKED - (CONTINUED) LOCAL GENERAL OBLIGATIONS - (CONTINUED) OR Rogue Community College, District, Refunding, Insured: MBIA: 5.000% 06/15/15 1,015,000 1,130,598 5.000% 06/15/16 1,050,000 1,163,915 5.000% 06/15/17 1,255,000 1,385,721 OR Salem-Keizer, School District No. 24J, Insured: FSA 5.000% 06/15/18 2,000,000 2,177,800 OR Tualatin Hills Park & Recreation District, Insured: FGIC 5.750% 03/01/14 990,000 1,150,420 OR Washington & Clackamas Counties: Deferred Interest, Series A, (a) 06/01/10 1,520,000 1,276,435 School District No. 23J, Tigard: (a) 06/15/18 2,700,000 1,570,914 Insured: MBIA 5.000% 06/15/21 6,575,000 7,388,130 OR Washington County: 5.500% 06/01/16 2,785,000 3,089,512 Criminal Justice Facilities, Refunding, 5.000% 12/01/10 1,400,000 1,456,168 School District No. 48J, Beaverton: 5.125% 01/01/14 2,000,000 2,164,860 5.125% 01/01/17 1,820,000 1,965,418 5.125% 01/01/18 2,260,000 2,438,291 OR Washington, Multnomah & Yamhill Counties, School District No. 1J, 5.000% 11/01/13 1,100,000 1,216,270 OR Yamhill County: School District No. 029J, Series 2005, Insured: FGIC 5.500% 06/15/21 1,000,000 1,188,550 School District No. 40, Insured: FGIC 6.000% 06/01/09 500,000 550,875 ----------- Local General Obligations Total 91,731,934 ----------- PAR ($) VALUE ($) - -------------------------------------------------------------------------- SPECIAL PROPERTY TAX - 6.9% OR Hood River Urban Renewal Agency, 6.250% 12/15/11 1,120,000 1,170,590 OR Lebanon Urban Renewal Agency: 5.625% 06/01/19 1,000,000 1,062,940 5.750% 06/01/15 1,120,000 1,180,984 6.000% 06/01/20 1,580,000 1,684,106 OR Medford Urban Renewal, 5.875% 09/01/10 500,000 510,855 OR Portland Airport Way Urban Renewal & Redevelopment, Convention Center, Series A, Insured: AMBAC: 5.750% 06/15/17 1,500,000 1,675,710 5.750% 06/15/18 2,050,000 2,288,210 OR Portland Limited Tax, Series A, 3.400% 06/01/13 1,575,000 1,567,692 OR Portland River District Urban Renewal & Redevelopment, Series A, Insured: AMBAC: 5.000% 06/15/17 1,500,000 1,637,190 5.000% 06/15/18 3,070,000 3,348,633 5.000% 06/15/20 2,000,000 2,170,200 OR Portland Urban Renewal & Redevelopment, South Park Blocks, Series A, Insured: AMBAC: 5.750% 06/15/17 2,065,000 2,306,894 5.750% 06/15/19 2,580,000 2,879,796 OR Redmond Urban Renewal Agency Revenue, Refunding, South Airport Industrial Area A, 5.700% 06/01/19 650,000 668,844 OR Redmond Urban Renewal Agency, Downtown Area B: 5.650% 06/01/13 720,000 751,399 5.850% 06/01/19 785,000 819,634 OR Seaside Urban Renewal Agency, Greater Seaside Urban Renewal, 5.250% 06/01/15 1,000,000 1,045,610 OR Veneta Urban Renewal Agency, 5.375% 02/15/16 700,000 747,355 5.625% 02/15/21 1,100,000 1,168,915 OR Wilsonville Limited Tax Improvement, 5.000% 12/01/10 250,000 251,203 ----------- Special Property Tax Total 28,936,760 See Accompanying Notes to Financial Statements. | 97 ________________________________________________________________________________ AUGUST 31, 2005 COLUMBIA OREGON INTERMEDIATE MUNICIPAL BOND FUND PAR ($) VALUE ($) - -------------------------------------------------------------------------- MUNICIPAL BONDS - (CONTINUED) TAX-BACKED - (CONTINUED) STATE APPROPRIATED - 3.8% OR Department of Administrative Services: Certificates of Participation, Refunding, Series A, Insured: AMBAC: 4.500% 05/01/12 1,020,000 1,067,236 5.000% 05/01/13 4,240,000 4,530,949 5.000% 05/01/14 1,000,000 1,068,620 Series B, Insured: MBIA 5.250% 05/01/10 840,000 913,685 Series C, Insured: MBIA: 5.250% 11/01/15 1,000,000 1,096,350 5.250% 11/01/17 5,000,000 5,475,550 Series E, Insured: FSA 5.000% 11/01/13 1,470,000 1,605,710 ----------- State Appropriated Total 15,758,100 STATE GENERAL OBLIGATIONS - 3.7% OR Board of Higher Education, Deferred Interest, Series A, (a) 08/01/17 1,050,000 641,340 Series A: (a) 08/01/14 490,000 345,965 5.000% 08/01/12 2,075,000 2,274,698 5.250% 08/01/14 255,000 279,439 5.250% 08/01/16 780,000 853,226 Series 2004 D, 5.000% 08/01/24 3,620,000 3,891,934 OR Elderly & Disabled Housing, Refunding, Series B, 4.950% 08/01/20 985,000 1,014,846 OR State: 9.200% 10/01/08 385,000 453,288 Series A, 5.250% 10/15/15 1,735,000 1,924,878 OR Veterans Welfare: 5.850% 10/01/15 320,000 326,781 8.000% 07/01/08 580,000 656,821 Series 80A, 5.700% 10/01/32 1,950,000 1,952,613 PR Commonwealth of Puerto Rico, Series A, GO, 5.000% 07/01/30 1,000,000 1,070,950 ----------- State General Obligations Total 15,686,779 ----------- TAX-BACKED TOTAL 154,034,676 PAR ($) VALUE ($) - -------------------------------------------------------------------------- TRANSPORTATION - 2.5% AIRPORTS - 0.5% OR Eugene Airport, Refunding, AMT: 5.650% 05/01/07 555,000 573,554 5.700% 05/01/08 515,000 541,337 OR Port of Portland International Airport, Series 12B, Refunding, Insured: FGIC 5.250% 07/01/12 1,000,000 1,065,420 ----------- Airports Total 2,180,311 PORTS - 0.7% OR Port Morrow, 6.700% 06/01/20 2,000,000 2,002,800 OR Port of St. Helens: 5.600% 08/01/14 315,000 324,759 5.750% 08/01/19 425,000 439,849 ----------- Ports Total 2,767,408 TRANSPORTATION - 1.3% OR Tri-County Metropolitan Transportation District: Series 1, 5.400% 06/01/19 4,200,000 4,425,876 Series A, 5.000% 09/01/15 1,000,000 1,091,310 ----------- Transportation Total 5,517,186 ----------- TRANSPORTATION TOTAL 10,464,905 UTILITIES - 7.6% INVESTOR OWNED - 2.1% OR Port of St. Helens Pollution Control, Portland General Electric Co.: Series A, 4.800% 04/01/10 5,195,000 5,321,810 Series B, 4.800% 06/01/10 3,500,000 3,586,940 ----------- Investor Owned Total 8,908,750 98 | See Accompanying Notes to Financial Statements. ________________________________________________________________________________ AUGUST 31, 2005 COLUMBIA OREGON INTERMEDIATE MUNICIPAL BOND FUND PAR ($) VALUE ($) - -------------------------------------------------------------------------- MUNICIPAL BONDS - (CONTINUED) UTILITIES - (CONTINUED) MUNICIPAL ELECTRIC - 3.2% OR Emerald Peoples Utility District: Insured: FGIC: 7.350% 11/01/10 2,160,000 2,569,233 7.350% 11/01/11 2,000,000 2,433,540 7.350% 11/01/12 2,490,000 3,092,829 7.350% 11/01/13 2,675,000 3,387,807 Series A, Insured: FSA 5.250% 11/01/20 605,000 672,349 OR Eugene Electric Utilities System, Series B, Refunding, Insured: FSA 5.250% 08/01/13 1,040,000 1,139,674 ----------- Municipal Electric Total 13,295,432 WATER & SEWER - 2.3% OR Myrtle Point Water, 6.000% 12/01/20 510,000 548,000 OR Portland Sewer System Revenue, Series A, Refunding, Insured: FGIC 5.000% 06/01/12 4,835,000 4,989,817 OR Sheridan Water Revenue: 6.200% 05/01/15 625,000 675,181 6.450% 05/01/20 520,000 563,987 Refunding, 5.350% 04/01/18 300,000 311,721 OR Washington County Housing Authority, Clean Water Services Sewer, Series Lien, Insured: MBIA 5.000% 10/01/13 2,310,000 2,552,920 ----------- Water & Sewer Total 9,641,626 ----------- UTILITIES TOTAL 31,845,808 Total Municipal Bonds (cost of $386,356,946) 409,090,080 SHARES VALUE ($) - -------------------------------------------------------------------------- INVESTMENT COMPANY - 0.0% Dreyfus Tax-Exempt Cash Management Fund 9,682 9,682 ----------- Total Investment Company (cost of $9,682) 9,682 SHORT-TERM OBLIGATIONS - 1.1% PAR ($) VARIABLE RATE DEMAND NOTES (D) - 1.1% FL Orange County School Board, Certificates of Participation, Series 2002 B, Insured: MBIA 2.300% 08/01/27 100,000 100,000 IA Finance Authority Private College Revenue, Series 2003, LOC: Wells Fargo Bank N.A. 2.320% 07/01/24 400,000 400,000 IA Hills Healthcare Revenue, Mercy Hospital Project, Series 2002, LOC: U.S. Bank N.A. 2.320% 08/01/32 300,000 300,000 KS Development Finance Authority Revenue, Hays Medical Center, Series 2000 N, 2.370% 05/15/26 200,000 200,000 MN Brooklyn Center Revenue, BCC Associates LLC, Series 2001, LOC: U.S Bank N.A. 2.370% 12/01/14 300,000 300,000 NY City Municipal Water Finance Authority, Water & Sewer Systems Revenue, Series 1994 G, SPA: FGIC-SPI 2.250% 06/15/24 400,000 400,000 OR Deschutes Valley Water District, 5.875% 09/01/05 810,000 810,000 SD Health & Educational Facilities Authority, Rapid City Regional Hospital, Series 2003, Insured: MBIA 2.320% 09/01/27 1,200,000 1,200,000 TX Harris County Health Facilities Development Corp., YMCA-Greater Houston Area, Series 2002, 2.340% 07/01/37 300,000 300,000 See Accompanying Notes to Financial Statements. | 99 ________________________________________________________________________________ AUGUST 31, 2005 COLUMBIA OREGON INTERMEDIATE MUNICIPAL BOND FUND PAR ($) VALUE ($) - -------------------------------------------------------------------------- SHORT-TERM OBLIGATIONS - (CONTINUED) VARIABLE RATE DEMAND NOTES (d) - (CONTINUED) WY Uinta County Pollution Control Revenue, Chevron U.S.A. Project, Inc., Series 1993, 2.300% 08/15/20 500,000 500,000 ----------- VARIABLE RATE DEMAND NOTES TOTAL 4,510,000 Total Short-Term Obligations (cost of $4,510,000) 4,510,000 TOTAL INVESTMENTS - 99.0% (COST OF $390,876,628) (e) 413,609,762 OTHER ASSETS & LIABILITIES, NET - 1.0% 3,987,574 NET ASSETS - 100.0% 417,597,336 NOTES TO INVESTMENT PORTFOLIO: (a) Zero coupon bond. (b) Denotes a restricted security, which is subject to registration with the SEC or is required to be exempted from such registration prior to resale. At August 31, 2005, the value of this security, which is not illiquid, represents 0.9% of net assets. ACQUISITION ACQUISITION SECURITY DATE COST -------- ----------- ----------- OR Health, Housing, Educational & Cultural Facilities Authority, Goodwill Industries Lane County, Series A, 6.650% 11/15/22 06/17/98 $ 3,750,000 ----------- (c) The Fund has been informed that each issuer has placed direct obligations of the U.S. Government in an irrevocable trust, solely for the payment of principal and interest. (d) Variable rate demand notes. These securities are payable upon demand and are secured by letters of credit or other credit support agreements from banks. The interest rates change periodically and the interest rates shown reflect the rates at August 31, 2005. (e) Cost for federal income tax purposes is $390,758,945. - -------------------------------------------------------------------------------- NOTES TO INVESTMENT PORTFOLIO (CONTINUED): At August 31, 2005, the composition of the Fund by revenue source is as follows: % OF HOLDINGS BY REVENUE SOURCE (UNAUDITED) NET ASSETS -------------------------------------------------------------------- Tax-Backed 36.9% Other 26.1 Health Care 12.0 Utilities 7.6 Education 5.9 Housing 4.8 Transportation 2.5 Other Revenue 2.1 Investment Company 0.0 Short-Term Obligations 1.1 Other Assets & Liabilities, Net 1.0 ----- 100.0% ===== ACRONYM NAME ------- ---- AMBAC Ambac Assurance Corp. AMT Alternative Minimum Tax FGIC Financial Guaranty Insurance Co. FHA Federal Housing Administration FSA Financial Security Assurance, Inc. GO General Obligation IBC Insured Bond Certificates MBIA MBIA Insurance Corp. 100 | See Accompanying Notes to Financial Statements. INVESTMENT PORTFOLIO ___________________________________________________________ AUGUST 31, 2005 COLUMBIA CONSERVATIVE HIGH YIELD FUND PAR ($) VALUE ($) - -------------------------------------------------------------------------- CORPORATE FIXED-INCOME BONDS & NOTES - 94.1% BASIC MATERIALS - 4.4% CHEMICALS - 2.5% CHEMICALS-DIVERSIFIED - 0.6% Equistar Chemicals LP 10.125% 09/01/08 7,370,000 8,116,213 10.625% 05/01/11 880,000 974,600 ----------- 9,090,813 CHEMICALS-SPECIALTY - 0.5% Nalco Co. 7.750% 11/15/11 7,720,000 8,106,000 ----------- 8,106,000 INDUSTRIAL-GASES - 1.4% Airgas, Inc. 6.250% 07/15/14 185,000 188,700 9.125% 10/01/11 19,613,000 21,182,040 ----------- 21,370,740 ----------- Chemicals Total 38,567,553 FOREST PRODUCTS & PAPER - 1.1% PAPER & RELATED PRODUCTS - 1.1% Boise Cascade LLC 7.125% 10/15/14 17,310,000 16,963,800 ----------- 16,963,800 ----------- Forest Products & Paper Total 16,963,800 IRON/STEEL - 0.8% STEEL-PRODUCERS - 0.8% Russel Metals, Inc. 6.375% 03/01/14 8,885,000 8,551,812 United States Steel Corp. 9.750% 05/15/10 4,055,000 4,450,363 ----------- 13,002,175 ----------- Iron/Steel Total 13,002,175 ----------- BASIC MATERIALS TOTAL 68,533,528 COMMUNICATIONS - 12.9% ADVERTISING - 2.0% ADVERTISING SALES - 2.0% Lamar Media Corp. 7.250% 01/01/13 29,383,000 30,925,608 ----------- 30,925,608 ----------- Advertising Total 30,925,608 PAR ($) VALUE ($) - -------------------------------------------------------------------------- MEDIA - 8.6% CABLE TV - 4.4% DirecTV Holdings 6.375% 06/15/15(a) 6,135,000 6,119,663 8.375% 03/15/13 16,182,000 17,759,745 EchoStar DBS Corp. 5.750% 10/01/08 15,125,000 14,973,750 6.625% 10/01/14 8,170,000 8,098,512 Rogers Cable, Inc. 6.250% 06/15/13 9,790,000 9,765,525 7.875% 05/01/12 11,225,000 12,193,156 ----------- 68,910,351 MULTIMEDIA - 0.6% Emmis Operating Co. 6.875% 05/15/12 8,645,000 8,688,225 ----------- 8,688,225 PUBLISHING-PERIODICALS - 3.1% Dex Media West LLC 5.875% 11/15/11 26,043,000 25,522,140 R.H. Donnelley Finance Corp. 10.875% 12/15/12(a) 20,265,000 23,406,075 ----------- 48,928,215 TELEVISION - 0.5% LIN Television Corp. 6.500% 05/15/13 8,250,000 7,878,750 ----------- 7,878,750 ----------- Media Total 134,405,541 TELECOMMUNICATIONS - 2.3% CELLULAR TELECOMMUNICATIONS - 2.3% Nextel Communications, Inc. 5.950% 03/15/14 275,000 284,969 7.375% 08/01/15 17,975,000 19,390,531 Rogers Wireless, Inc. 7.500% 03/15/15 7,865,000 8,572,850 8.000% 12/15/12 7,475,000 7,998,250 ----------- 36,246,600 ----------- Telecommunications Total 36,246,600 ----------- COMMUNICATIONS TOTAL 201,577,749 CONSUMER CYCLICAL - 22.2% AUTO PARTS & EQUIPMENT - 0.7% AUTO/TRUCK PARTS & EQUIPMENT-ORIGINAL - 0.7% Accuride Corp. 8.500% 02/01/15 6,655,000 6,921,200 TRW Automotive, Inc. 9.375% 02/15/13 4,195,000 4,677,425 ----------- 11,598,625 ----------- Auto Parts & Equipment Total 11,598,625 See Accompanying Notes to Financial Statements. | 101 ________________________________________________________________________________ AUGUST 31, 2005 COLUMBIA CONSERVATIVE HIGH YIELD FUND PAR ($) VALUE ($) - -------------------------------------------------------------------------- CORPORATE FIXED-INCOME BONDS & NOTES - (CONTINUED) CONSUMER CYCLICAL - (CONTINUED) ENTERTAINMENT - 2.9% MUSIC - 0.7% Warner Music Group 7.375% 04/15/14 11,105,000 11,299,338 ----------- 11,299,338 RACETRACKS - 1.1% Speedway Motorsports, Inc. 6.750% 06/01/13 16,983,000 17,577,405 ----------- 17,577,405 THEATERS - 1.1% Cinemark USA, Inc. 9.000% 02/01/13 15,815,000 16,763,900 ----------- 16,763,900 ----------- Entertainment Total 45,640,643 HOME BUILDERS - 2.5% BUILDING-RESIDENTIAL/COMMERCIAL - 2.5% Beazer Homes USA, Inc. 6.875% 07/15/15(a) 7,800,000 7,673,250 K. Hovnanian Enterprises, Inc. 6.000% 01/15/10 4,865,000 4,755,538 6.375% 12/15/14 4,160,000 4,076,800 6.500% 01/15/14 6,315,000 6,236,062 KB Home 5.875% 01/15/15 5,730,000 5,558,100 7.750% 02/01/10 5,150,000 5,407,500 8.625% 12/15/08 1,665,000 1,798,200 9.500% 02/15/11 2,565,000 2,731,725 ----------- 38,237,175 ----------- Home Builders Total 38,237,175 HOME FURNISHINGS - 0.6% HOME FURNISHINGS - 0.6% Sealy Mattress Co. 8.250% 06/15/14 8,005,000 8,485,300 ----------- 8,485,300 ----------- Home Furnishings Total 8,485,300 LEISURE TIME - 2.5% CRUISE LINES - 1.9% Royal Caribbean Cruises Ltd. 6.750% 03/15/08 3,325,000 3,433,063 6.875% 12/01/13 6,275,000 6,682,875 8.750% 02/02/11 17,990,000 20,418,650 ----------- 30,534,588 PAR ($) VALUE ($) - -------------------------------------------------------------------------- LEISURE & RECREATIONAL PRODUCTS - 0.6% Leslie's Poolmart 7.750% 02/01/13 8,630,000 8,845,750 ----------- 8,845,750 ----------- Leisure Time Total 39,380,338 LODGING - 9.2% CASINO HOTELS - 8.3% Caesars Entertainment, Inc. 7.875% 03/15/10 16,775,000 18,515,406 8.875% 09/15/08 5,150,000 5,684,313 9.375% 02/15/07 5,875,000 6,234,844 CCM Merger, Inc. 8.000% 08/01/13(a) 7,575,000 7,726,500 Kerzner International Ltd. 8.875% 08/15/11 14,285,000 15,249,237 MGM Mirage 6.000% 10/01/09 27,980,000 27,980,000 8.500% 09/15/10 4,065,000 4,471,500 Station Casinos, Inc. 6.500% 02/01/14 16,120,000 16,442,400 6.875% 03/01/16 13,540,000 13,844,650 Wynn Las Vegas LLC 6.625% 12/01/14 13,830,000 13,432,387 ----------- 129,581,237 HOTELS & MOTELS - 0.9% ITT Corp. 6.750% 11/15/05 800,000 803,000 Starwood Hotels & Resorts Worldwide, Inc. 7.375% 05/01/07 1,300,000 1,347,125 7.875% 05/01/12 11,180,000 12,409,800 ----------- 14,559,925 ----------- Lodging Total 144,141,162 RETAIL - 3.8% RETAIL-AUTOMOBILES - 1.6% AutoNation, Inc. 9.000% 08/01/08 14,330,000 15,870,475 Group 1 Automotive, Inc. 8.250% 08/15/13 8,045,000 8,246,125 ----------- 24,116,600 RETAIL-CONVENIENCE STORE - 1.1% Couche-Tard US LP 7.500% 12/15/13 16,480,000 17,139,200 ----------- 17,139,200 RETAIL-PROPANE DISTRIBUTORS - 0.6% Suburban Propane Partners 6.875% 12/15/13 9,675,000 9,360,562 ----------- 9,360,562 102 | See Accompanying Notes to Financial Statements. ________________________________________________________________________________ AUGUST 31, 2005 COLUMBIA CONSERVATIVE HIGH YIELD FUND PAR ($) VALUE ($) - -------------------------------------------------------------------------- CORPORATE FIXED-INCOME BONDS & NOTES - (CONTINUED) CONSUMER CYCLICAL - (CONTINUED) RETAIL - (CONTINUED) RETAIL-RESTAURANTS - 0.5% Domino's, Inc. 8.250% 07/01/11 7,805,000 8,351,350 ----------- 8,351,350 ----------- Retail Total 58,967,712 ----------- CONSUMER CYCLICAL TOTAL 346,450,955 CONSUMER NON-CYCLICAL - 17.9% BEVERAGES - 3.7% BEVERAGES-NON-ALCOHOLIC - 2.0% Cott Beverages, Inc. 8.000% 12/15/11 29,625,000 31,180,312 ----------- 31,180,312 BEVERAGES-WINE/SPIRITS - 1.7% Constellation Brands, Inc. 8.000% 02/15/08 3,850,000 4,052,125 8.125% 01/15/12 17,585,000 18,706,044 8.625% 08/01/06 3,100,000 3,200,750 ----------- 25,958,919 ----------- Beverages Total 57,139,231 COMMERCIAL SERVICES - 4.7% COMMERCIAL SERVICES - 2.2% Iron Mountain, Inc. 7.750% 01/15/15 7,450,000 7,636,250 8.625% 04/01/13 17,140,000 17,997,000 Mac-Gray Corp. 7.625% 08/15/15(a) 7,825,000 8,079,312 ----------- 33,712,562 FUNERAL SERVICES & RELATED ITEMS - 0.5% Stewart Enterprises, Inc. 6.250% 02/15/13(a) 8,105,000 7,821,325 ----------- 7,821,325 PRIVATE CORRECTIONS - 1.5% Corrections Corp. of America 6.250% 03/15/13 595,000 587,563 7.500% 05/01/11 22,655,000 23,334,650 ----------- 23,922,213 RENTAL AUTO/EQUIPMENT - 0.5% United Rentals, Inc. 7.000% 02/15/14 7,100,000 6,709,500 7.750% 11/15/13 845,000 823,875 ----------- 7,533,375 ----------- Commercial Services Total 72,989,475 PAR ($) VALUE ($) - -------------------------------------------------------------------------- FOOD - 0.5% FOOD-MISCELLANEOUS/DIVERSIFIED - 0.5% Del Monte Corp. 6.750% 02/15/15(a) 7,705,000 7,859,100 ----------- 7,859,100 ----------- Food Total 7,859,100 HEALTHCARE SERVICES - 6.4% MEDICAL-HMO - 1.0% Coventry Health Care, Inc. 5.875% 01/15/12 15,540,000 15,928,500 ----------- 15,928,500 MEDICAL-HOSPITALS - 3.4% Community Health Systems, Inc. 6.500% 12/15/12 2,550,000 2,581,875 HCA, Inc. 6.950% 05/01/12 29,545,000 31,149,884 Triad Hospitals, Inc. 7.000% 05/15/12 14,903,000 15,424,605 7.000% 11/15/13 3,875,000 3,981,563 ----------- 53,137,927 MEDICAL-NURSING HOMES - 0.5% Extendicare Health Services, Inc. 6.875% 05/01/14 7,125,000 7,018,125 9.500% 07/01/10 1,280,000 1,353,600 ----------- 8,371,725 MEDICAL-OUTPATIENT/HOME MEDICAL - 0.5% Select Medical Corp. 7.625% 02/01/15 8,595,000 8,358,638 ----------- 8,358,638 MEDICAL PRODUCTS - 1.0% Fisher Scientific International, Inc. 6.750% 08/15/14 14,360,000 15,006,200 ----------- 15,006,200 ----------- Healthcare Services Total 100,802,990 HOUSEHOLD PRODUCTS/WARES - 1.4% CONSUMER PRODUCTS-MISCELLANEOUS - 1.4% Scotts Co. 6.625% 11/15/13 21,530,000 22,175,900 ----------- 22,175,900 ----------- Household Products/Wares Total 22,175,900 PHARMACEUTICALS - 1.2% MEDICAL-WHOLESALE DRUG DISTRIBUTION - 0.7% AmerisourceBergen Corp. 8.125% 09/01/08 9,610,000 10,522,950 ----------- 10,522,950 See Accompanying Notes to Financial Statements. | 103 - -------------------------------------------------------------------------------- AUGUST 31, 2005 COLUMBIA CONSERVATIVE HIGH YIELD FUND PAR ($) VALUE ($) - -------------------------------------------------------------------------- CORPORATE FIXED-INCOME BONDS & NOTES - (CONTINUED) CONSUMER NON-CYCLICAL - (CONTINUED) PHARMACEUTICALS - (CONTINUED) PHARMACY SERVICES - 0.5% Omnicare, Inc. 6.125% 06/01/13 1,680,000 1,650,600 Series B, 8.125% 03/15/11 6,470,000 6,761,150 ----------- 8,411,750 ----------- Pharmaceuticals Total 18,934,700 ----------- CONSUMER NON-CYCLICAL TOTAL 279,901,396 ENERGY - 14.4% COAL - 3.6% COAL - 3.6% Arch Western Finance LLC 6.750% 07/01/13 24,790,000 25,347,775 Peabody Energy Corp. 5.875% 04/15/16 2,775,000 2,747,250 6.875% 03/15/13 26,710,000 27,845,175 ----------- 55,940,200 ----------- Coal Total 55,940,200 OIL & GAS - 6.2% OIL & GAS DRILLING - 0.5% Pride International, Inc. 7.375% 07/15/14 7,225,000 7,803,000 ----------- 7,803,000 OIL COMPANIES-EXPLORATION & PRODUCTION - 5.7% Chesapeake Energy Corp. 6.375% 06/15/15 18,735,000 19,062,862 7.500% 09/15/13 10,195,000 10,985,113 7.750% 01/15/15 425,000 457,938 Newfield Exploration Co. 6.625% 09/01/14 19,255,000 20,121,475 Plains Exploration & Production Co. 7.125% 06/15/14 13,265,000 14,160,387 Pogo Producing Co. 6.625% 03/15/15(a) 7,050,000 7,261,500 8.250% 04/15/11 3,080,000 3,249,400 Vintage Petroleum, Inc. 7.875% 05/15/11 7,125,000 7,481,250 8.250% 05/01/12 6,025,000 6,476,875 ----------- 89,256,800 ----------- Oil & Gas Total 97,059,800 PAR ($) VALUE ($) - -------------------------------------------------------------------------- OIL & GAS SERVICES - 2.6% OIL-FIELD SERVICES - 1.8% Hornbeck Offshore Services, Inc. Series B, 6.125% 12/01/14 9,975,000 9,999,938 Universal Compression, Inc. 7.250% 05/15/10 16,245,000 16,976,025 ----------- 26,975,963 OIL FIELD MACHINERY & EQUIPMENT - 0.8% Grant Prideco, Inc. 6.125% 08/15/15(a) 12,725,000 12,884,062 ----------- 12,884,062 ----------- Oil & Gas Services Total 39,860,025 PIPELINES - 2.0% PIPELINES - 2.0% MarkWest Energy Partners LP 6.875% 11/01/14(a) 8,725,000 8,790,437 Williams Companies, Inc. 7.125% 09/01/11 4,870,000 5,162,200 8.125% 03/15/12 16,220,000 18,085,300 ----------- 32,037,937 ----------- Pipelines Total 32,037,937 ----------- ENERGY TOTAL 224,897,962 FINANCIALS - 1.1% REAL ESTATE INVESTMENT TRUSTS - 1.1% REITS-DIVERSIFIED - 0.5% iStar Financial, Inc. Series B, 5.125% 04/01/11 7,350,000 7,327,068 7.000% 03/15/08 250,000 262,708 ----------- 7,589,776 REITS-HOTELS - 0.6% Host Marriott LP 6.375% 03/15/15 8,775,000 8,753,062 ----------- 8,753,062 ----------- Real Estate Investment Trusts Total 16,342,838 ----------- FINANCIALS TOTAL 16,342,838 INDUSTRIALS - 16.4% AEROSPACE & DEFENSE - 3.1% AEROSPACE/DEFENSE-EQUIPMENT - 1.1% TransDigm, Inc. 8.375% 07/15/11 15,710,000 16,613,325 ----------- 16,613,325 104 | See Accompanying Notes to Financial Statements. ________________________________________________________________________________ AUGUST 31, 2005 COLUMBIA CONSERVATIVE HIGH YIELD FUND PAR ($) VALUE ($) - -------------------------------------------------------------------------- CORPORATE FIXED-INCOME BONDS & NOTES - (CONTINUED) INDUSTRIALS - (CONTINUED) AEROSPACE & DEFENSE - (CONTINUED) ELECTRONICS-MILITARY - 2.0% L-3 Communications Corp. 5.875% 01/15/15 3,000,000 2,940,000 6.125% 07/15/13 1,855,000 1,873,550 6.375% 10/15/15(a) 11,515,000 11,716,513 7.625% 06/15/12 14,075,000 14,919,500 ----------- 31,449,563 ----------- Aerospace & Defense Total 48,062,888 ENVIRONMENTAL CONTROL - 1.0% NON-HAZARDOUS WASTE DISPOSAL - 1.0% Allied Waste North America, Inc. 6.375% 04/15/11 7,600,000 7,315,000 6.500% 11/15/10 7,875,000 7,717,500 Series B, 9.250% 09/01/12 1,383,000 1,504,013 ----------- 16,536,513 ----------- Environmental Control Total 16,536,513 HAND/MACHINE TOOLS - 1.0% MACHINE TOOLS & RELATED PRODUCTS - 1.0% Kennametal, Inc. 7.200% 06/15/12 14,345,000 15,888,665 ----------- 15,888,665 ----------- Hand/Machine Tools Total 15,888,665 MACHINERY-DIVERSIFIED - 1.6% MACHINERY-GENERAL INDUSTRY - 1.6% Manitowoc Co., Inc. 7.125% 11/01/13 7,365,000 7,687,219 Westinghouse Air Brake Technologies Corp. 6.875% 07/31/13 16,475,000 17,051,625 ----------- 24,738,844 ----------- Machinery-Diversified Total 24,738,844 PACKAGING & CONTAINERS - 6.2% CONTAINERS-METAL/GLASS - 4.9% Ball Corp. 6.875% 12/15/12 29,047,000 30,208,880 7.750% 08/01/06 850,000 869,125 Owens-Brockway Glass Container, Inc. 6.750% 12/01/14 3,875,000 3,865,313 8.875% 02/15/09 7,225,000 7,640,437 Owens-Illinois, Inc. 7.500% 05/15/10 11,000,000 11,385,000 Silgan Holdings, Inc. 6.750% 11/15/13 22,380,000 22,855,575 ----------- 76,824,330 PAR ($) VALUE ($) - -------------------------------------------------------------------------- CONTAINERS-PAPER/PLASTIC - 1.3% Jefferson Smurfit Corp. 8.250% 10/01/12 3,745,000 3,716,913 Smurfit-Stone Container Corp. 8.375% 07/01/12 5,185,000 5,172,037 9.750% 02/01/11 5,425,000 5,655,562 Stone Container Finance 7.375% 07/15/14 5,540,000 5,249,150 ----------- 19,793,662 ----------- Packaging & Containers Total 96,617,992 TRANSPORTATION - 3.5% TRANSPORTATION-MARINE - 2.4% Overseas Shipholding Group 8.250% 03/15/13 8,925,000 9,594,375 Teekay Shipping Corp. 8.875% 07/15/11 24,286,000 27,837,827 ----------- 37,432,202 TRANSPORTATION-SERVICES - 1.1% Offshore Logistics, Inc. 6.125% 06/15/13 17,800,000 17,444,000 ----------- 17,444,000 ----------- Transportation Total 54,876,202 ----------- INDUSTRIALS TOTAL 256,721,104 TECHNOLOGY - 1.1% SEMICONDUCTORS - 1.1% ELECTRONIC COMPONENTS-SEMICONDUCTORS - 1.1% Freescale Semiconductor, Inc. 6.875% 07/15/11 16,380,000 17,199,000 ----------- 17,199,000 ----------- Semiconductors Total 17,199,000 ----------- TECHNOLOGY TOTAL 17,199,000 UTILITIES - 3.7% ELECTRIC - 3.7% ELECTRIC-GENERATION - 2.2% AES Corp. 7.750% 03/01/14 18,190,000 19,690,675 Texas Genco LLC 6.875% 12/15/14(a) 15,040,000 15,641,600 ----------- 35,332,275 ELECTRIC-INTEGRATED - 1.5% Nevada Power Co. 5.875% 01/15/15(a) 5,000,000 5,025,000 6.500% 04/15/12 3,950,000 4,068,500 NorthWestern Corp. 5.875% 11/01/14(a) 975,000 999,375 See Accompanying Notes to Financial Statements. | 105 - -------------------------------------------------------------------------------- AUGUST 31, 2005 COLUMBIA CONSERVATIVE HIGH YIELD FUND PAR ($) VALUE ($) - -------------------------------------------------------------------------- CORPORATE FIXED-INCOME BONDS & NOTES - (CONTINUED) UTILITIES - (CONTINUED) ELECTRIC - (CONTINUED) ELECTRIC-INTEGRATED - (CONTINUED) TECO Energy, Inc. 6.750% 05/01/15(a) 6,320,000 6,722,900 7.000% 05/01/12 5,675,000 6,100,625 ------------- 22,916,400 ------------- Electric Total 58,248,675 ------------- UTILITIES TOTAL 58,248,675 Total Corporate Fixed-Income Bonds & Notes (cost of $1,453,717,495) 1,469,873,207 SHORT-TERM OBLIGATION - 4.6% Repurchase agreement with State Street Bank & Trust Co., dated 08/31/05, due 09/01/05 at 3.430%, collateralized by a U.S. Treasury Note maturing 09/30/06, market value of $72,810,191 (repurchase proceeds $71,388,801) 71,382,000 71,382,000 ------------- Total Short-Term Obligation (cost of $71,382,000) 71,382,000 TOTAL INVESTMENTS - 98.7% (COST OF $1,525,099,495)(b) 1,541,255,207 OTHER ASSETS & LIABILITIES, NET - 1.3% 19,883,991 NET ASSETS - 100.0% 1,561,139,198 - -------------------------------------------------------------------------- NOTES TO INVESTMENT PORTFOLIO: (a) Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At August 31, 2005, these securities, which did not include any illiquid securities, amounted to $137,726,612, which represents 8.8% of net assets. (b) Cost for federal income tax purposes is $1,532,722,474. At August 31, 2005, the asset allocation of the Fund is as follows: % OF ASSET ALLOCATION (UNAUDITED) NET ASSETS -------------------------------------------------------------------- Corporate Fixed-Income Bonds & Notes 94.1% Short-Term Obligation 4.6 Other Assets & Liabilities, Net 1.3 ----- 100.0% ===== ACRONYM NAME ------- ---- REIT Real Estate Investment Trust 106 | See Accompanying Notes to Financial Statements. INVESTMENT PORTFOLIO ___________________________________________________________ AUGUST 31, 2005 COLUMBIA DAILY INCOME COMPANY PAR ($) VALUE ($) - -------------------------------------------------------------------------- COMMERCIAL PAPER - 42.7% Amstel Funding Corp. 3.250% 10/18/05 (a) 3,000,000 2,987,271 Atlantis One Funding Corp. 3.200% 09/19/05 (a) 10,000,000 9,984,000 Cancara Asset Securitisation LLC 3.250% 09/01/05 (a) 5,000,000 5,000,000 Charta Corp. 3.760% 11/21/05 (a) 9,000,000 8,923,860 Concord Minutemen Capital Co. 3.300% 10/18/05 (c) 5,000,000 4,978,458 3.330% 10/20/05 (c) 5,000,000 4,977,338 CRC Funding LLC. 3.730% 11/21/05 (a) 5,000,000 4,958,038 Crown Point Capital Co. 3.680% 01/12/06 (c) 5,000,000 4,932,022 Galaxy Funding, Inc. 3.280% 09/06/05 (a) 10,000,000 9,995,444 Georgetown Funding Co. LLC 3.510% 09/22/05 (a) 5,000,000 4,989,763 Giro Balanced Funding Corp. 3.200% 09/23/05 (a) 6,000,000 5,988,267 Grampian Funding LLC 3.130% 09/09/05 (a) 10,000,000 9,993,044 3.450% 10/04/05 (a) 6,000,000 5,981,025 3.920% 02/17/06 (a) 4,000,000 3,926,391 Ivory Funding Corp. 3.290% 09/12/05 (a) 7,132,000 7,124,830 Lexington Parker Capital Corp. 3.410% 09/21/05 (a) 4,326,000 4,317,805 3.900% 02/15/06 (a) 5,000,000 4,909,542 Mane Funding Corp. 3.750% 11/21/05 (a) 15,000,000 14,873,437 Millstone Funding Corp. 3.610% 09/23/05 (a) 2,000,000 1,995,588 Picaros Funding LLC 3.540% 11/08/05 (a) 4,000,000 3,973,253 3.920% 02/17/06 (a) 3,000,000 2,944,793 Premier Asset Collateralized Entity LLC 3.290% 09/01/05 (c) 5,000,000 5,000,000 3.250% 09/01/05 (c) 2,500,000 2,500,000 Scaldis Capital LLC 3.300% 10/21/05 (a) 3,883,000 3,865,203 3.360% 11/10/05 (a) 8,839,000 8,781,252 3.470% 10/11/05 (a) 5,000,000 4,980,722 3.730% 11/21/05 (a) 2,000,000 1,983,215 Sedna Finance, Inc. 3.760% 11/23/05 (c) 5,000,000 4,956,656 Sigma Finance, Inc. 3.365% 11/22/05 (c) 5,000,000 4,961,676 Solitaire Funding LLC 3.370% 09/22/05 (a) 10,000,000 9,980,342 3.420% 09/30/05 (a) 6,000,000 5,983,470 Stanfield Victoria Funding LLC 3.510% 10/31/05 (c) 5,000,000 4,970,750 PAR ($) VALUE ($) - -------------------------------------------------------------------------- Sunbelt Funding Corp. 3.560% 09/19/05 (a) 20,534,000 20,497,449 Surrey Funding Corp. 3.330% 09/16/05 (a) 2,000,000 1,997,225 ----------- Total Commercial Paper (cost of $208,212,129) 208,212,129 CORPORATE FIXED-INCOME BONDS & NOTES - 39.2% CONSUMER NON-CYCLICAL - 1.0% PHARMACEUTICALS - 1.0% Pfizer, Inc. 3.660% 11/04/05 (b) 5,000,000 4,997,750 ----------- Pharmaceuticals Total 4,997,750 ----------- CONSUMER NON-CYCLICAL TOTAL 4,997,750 FINANCIALS - 38.2% COMMERCIAL BANKS - 3.9% US Bank NA 3.757% 02/17/06 (b) 9,000,000 8,999,967 Wells Fargo & Co. 3.510% 09/29/05 (b) 10,000,000 10,000,441 ----------- Commercial Banks Total 19,000,408 DIVERSIFIED FINANCIAL SERVICES - 34.3% 1800 Indian Wood Ltd. LOC: Fifth Third Bank 3.640% 04/01/26 (b) 1,000,000 1,000,000 500 Thomas Moore Building LLC LOC: Fifth Third Bank 3.640% 06/01/22 (b) 1,000,000 1,000,000 Absom LLC LOC: Fifth Third Bank 3.700% 06/01/15 (b) 2,110,000 2,110,000 Al-Fe Heat Treating, Inc. LOC: National City Bank of Indiana 3.710% 05/01/21 (b) 3,000,000 3,000,000 American Made LLC LOC: National City Bank 3.660% 12/01/24 (b) 6,045,000 6,045,000 Beckfield Properties LLC LOC: Fifth Third Bank 3.640% 12/01/24 (b) 1,000,000 1,000,000 Beta Finance, Inc. 3.315% 06/13/06 (b)(c) 10,000,000 9,999,509 Bleach Tech/LDJ Seville LOC: National City Bank 3.660% 11/01/35 (b) 5,120,000 5,120,000 See Accompanying Notes to Financial Statements. | 107 ________________________________________________________________________________ AUGUST 31, 2005 COLUMBIA DAILY INCOME COMPANY PAR ($) VALUE ($) - -------------------------------------------------------------------------- CORPORATE FIXED-INCOME BONDS & NOTES - (CONTINUED) FINANCIALS - (CONTINUED) DIVERSIFIED FINANCIAL SERVICES - (CONTINUED) CC USA, Inc. 3.310% 12/02/05 (b)(c) 5,000,000 4,999,653 Central Avenue Properties Ltd. LOC: Fifth Third Bank 3.640% 11/01/23 (b) 1,225,000 1,225,000 Central Supply Co. LOC: Fifth Third Bank 3.640% 08/01/23 (b) 3,865,000 3,865,000 Chagrin Valley Partners LLC LOC: Fifth Third Bank 3.640% 11/01/13 (b) 1,080,000 1,080,000 DiGerinomo Aggregates LOC: National City Bank 3.660% 01/01/15 (b) 5,395,000 5,395,000 Elder Land Development Corp. LOC: Fifth Third Bank 3.640% 09/01/23 (b) 1,720,000 1,720,000 Encore Commercial Development LLC LOC: Fifth Third Bank 3.640% 06/01/23 (b) 1,510,000 1,510,000 Falls Village Realty LLC LOC: Fifth Third Bank 3.640% 12/01/29 (b) 3,000,000 3,000,000 Fresh Unlimited, Inc. LOC: Fifth Third Bank 3.640% 11/01/44 (b) 1,000,000 1,000,000 Grand Rapids Christian School LOC: Fifth Third Bank 3.640% 09/01/28 (b) 4,120,000 4,120,000 Harlan Development Co. LOC: Fifth Third Bank 3.640% 12/01/23 (b) 4,952,500 4,952,500 3.640% 12/01/23 (b) 2,505,350 2,505,350 Harrier Finance Funding LLC 3.610% 10/25/05 (b)(c) 10,000,000 10,000,000 Holten Meat, Inc. LOC: US Bank NA 3.610% 05/01/25 (b) 6,370,000 6,370,000 Keating Muething & Klekamp LOC: Fifth Third Bank 3.640% 11/01/24 (b) 1,000,000 1,000,000 LRC Meadows Investors LLC LOC: JP Morgan Chase Bank 3.690% 12/01/34 (b) 1,300,000 1,300,000 LTC Investors LLC LOC: National City Bank 3.640% 11/01/24 (b) 2,320,000 2,320,000 MRN New Gar Hotel Ltd. LOC: US Bank NA 3.660% 10/01/13 (b) 3,855,000 3,855,000 Palms at Brentwood LLC LOC: Amsouth Bank 3.640% 12/01/34 (b) 11,000,000 11,000,000 PAR ($) VALUE ($) - -------------------------------------------------------------------------- Seventh Avenue Associates LOC: National City Bank 3.660% 01/01/27 (b) 6,190,000 6,190,000 Sigma Finance, Inc. 4.000% 08/11/06 (b)(c) 8,000,000 7,992,975 Skeletal Properties LLC LOC: Fifth Third Bank 3.640% 06/01/34 (b) 1,000,000 1,000,000 Spartan Medical Facility LOC: Fifth Third Bank 3.640% 12/01/26 (b) 1,500,000 1,500,000 Sumner Medical Plaza LLC LOC: Fifth Third Bank 3.640% 10/01/10 (b) 3,470,000 3,470,000 Tango Finance Corp. 3.588% 01/17/06 (b)(c) 10,000,000 10,000,480 Titan Holdings Group LLC LOC: Fifth Third Bank 3.640% 05/01/12 (b) 1,350,000 1,350,000 Union Hospital, Inc. LOC: Fifth Third Bank 3.640% 09/01/25 (b) 2,150,000 2,150,000 Vancouver Clinic Building LLC LOC: US Bank NA 3.610% 02/01/25 (b) 5,000,000 5,000,000 Whistlejacket Capital Ltd. 3.531% 10/14/05 (b)(c) 5,000,000 4,999,798 3.570% 05/15/06 (b)(c) 8,000,000 7,999,437 White Pine Finance LLC 3.315% 09/07/05 (b)(c) 10,000,000 9,999,935 3.580% 04/20/06 (b)(c) 5,000,000 4,999,532 ----------- Diversified Financial Services Total 167,144,169 ----------- FINANCIALS TOTAL 186,144,577 Total Corporate Fixed-Income Bonds & Notes (cost of $191,142,327) 191,142,327 MUNICIPAL BONDS - 12.3% CALIFORNIA - 3.8% CA Educational Facilities Authority Revenue, University Judaism, Series B, LOC: Allied Irish Bank 3.660% 12/01/28 (b) 6,000,000 6,000,000 CA San Diego Metropolitan Transportation Development Board, Pension Obligation Revenue, Series B, Insured: MBIA, SPA: Dexia Credit Local 3.570% 12/01/33 (b) 12,595,000 12,595,000 ----------- CALIFORNIA TOTAL 18,595,000 108 | See Accompanying Notes to Financial Statements. ________________________________________________________________________________ AUGUST 31, 2005 COLUMBIA DAILY INCOME COMPANY PAR ($) VALUE ($) - -------------------------------------------------------------------------- MUNICIPAL BONDS - (CONTINUED) FLORIDA - 0.2% FL Housing Finance Corp. Revenue, Waterford Pointe, Series E-2, LOC: FNMA 3.660% 02/15/33 (b) 1,150,000 1,150,000 ----------- FLORIDA TOTAL 1,150,000 GEORGIA - 0.2% GA Burke County Industrial Development Authority Revenue, Fleetguard, Inc. Project, Series 2003, LOC: Fifth Third Bank 3.640% 08/01/18 (b) 925,000 925,000 ----------- GEORGIA TOTAL 925,000 INDIANA - 0.2% IN Industrial Development Authority Revenue, Lawrence Utilities, Series 2003 B, LOC: Fifth Third Bank 3.660% 07/01/23 (b) 1,000,000 ----------- INDIANA TOTAL 1,000,000 KENTUCKY - 0.3% KY Henderson Regional Industrial Development Authority Revenue, LOC: Fifth Third Bank 3.640% 07/01/23 (b) 1,670,000 1,670,000 ----------- KENTUCKY TOTAL 1,670,000 MARYLAND - 2.8% MD Baltimore Project Revenue, Baltimore Parking Facilities, Series 2002, Insured: FGIC SPA: Dexia Credit Local 3.670% 07/01/32 (b) 13,555,000 13,555,000 ----------- MARYLAND TOTAL 13,555,000 PENNSYLVANIA - 2.8% PA Donegal Crossing LLC, LOC: Federal Home Loan Bank 3.610% 08/15/27 (b) 13,380,000 13,380,000 ----------- PENNSYLVANIA TOTAL 13,380,000 PAR ($) VALUE ($) - -------------------------------------------------------------------------- TEXAS - 2.0% TX Harris County Houston Texas Sports Authority Special Revenue, Series E, Insured: MBIA, SPA: JPMorgan Chase Bank 3.590% 11/15/30 (b) 9,600,000 9,600,000 ----------- TEXAS TOTAL 9,600,000 Total Municipal Bonds (cost of $59,875,000) 59,875,000 GOVERNMENT AGENCIES & OBLIGATIONS - 4.1% U.S. GOVERNMENT AGENCY - 4.1% Federal National Mortgage Association 3.386% 10/03/05 (b) 20,000,000 19,998,483 ----------- U.S. GOVERNMENT AGENCY TOTAL 19,998,483 Total Government Agencies & Obligations (cost of $19,998,483) 19,998,483 CERTIFICATES OF DEPOSIT - 2.6% Barclays Bank PLC 3.552% 06/21/06 (b) 5,000,000 4,999,500 CS First Boston 3.500% 12/29/05 (b) 8,000,000 8,001,640 ----------- Total Certificates of Deposit (cost of $13,001,140) 13,001,140 REPURCHASE AGREEMENT - 0.1% Repurchase agreement with State Street Bank & Trust Co., dated 08/31/05, due 09/01/05 at 3.470%, collateralized by a U.S. Government Agency Obligation maturing 06/02/06, market value of $370,925 (repurchase proceeds $361,035) 361,000 361,000 ----------- Total Repurchase Agreement (cost of $361,000) 361,000 TOTAL INVESTMENTS - 101.0% (COST OF $492,590,079) (d) 492,590,079 OTHER ASSETS & LIABILITIES, NET - (1.0)% (4,766,493) NET ASSETS - 100.0% 487,823,586 See Accompanying Notes to Financial Statements. | 109 ________________________________________________________________________________ AUGUST 31, 2005 COLUMBIA DAILY INCOME COMPANY - -------------------------------------------------------------------------------- NOTES TO INVESTMENT PORTFOLIO: (a) Security exempt from registration under Section 4(2) of the Securities Act of 1933. These securities may only be resold in exempt transactions to qualified buyers. Private resales of these securities to qualified institutional buyers are also exempt from registration pursuant to Rule 144A under the Securities Act of 1933. At August 31, 2005, these securities amounted to $170,935,229, which represents 35.0% of net assets. (b) The interest rate shown on floating rate or variable rate securities reflects the rate at August 31, 2005. (c) Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At August 31, 2005, these securities, which did not include any illiquid securities, amounted to $108,268,219, which represents 22.2% of net assets. (d) Cost for federal income tax purposes is $492,590,079. ACRONYM NAME ------- ----- FGIC Financial Guaranty Insurance Co. FNMA Federal National Mortgage Association LOC Letter of Credit/Line of Credit MBIA MBIA Insurance Corp. SPA Stand-by Purchase Agreement 110 | See Accompanying Notes to Financial Statements. This page intentionally left blank. STATEMENTS OF ASSETS AND LIABILITIES ___________________________________________ AUGUST 31, 2005 COLUMBIA FUNDS
INTERNATIONAL MID CAP SMALL CAP REAL ESTATE STOCK GROWTH GROWTH EQUITY TECHNOLOGY FUND (a) ($) FUND ($) FUND I ($) FUND ($) FUND ($) - ---------------------------------------------------------------------------------------------------------------------------------- ASSETS Unaffiliated investments, at identified cost (including short-term obligations) 896,152,988 693,361,700 177,285,285 476,443,652 50,747,901 Affiliated investments, at identified cost -- -- -- -- -- -------------- ----------- ----------- ------------ ----------- Total investments, at identified cost 896,152,988 693,361,700 177,285,285 476,443,652 50,747,901 -------------- ----------- ----------- ------------ ----------- Unaffiliated investments, at value 1,039,047,663 835,116,901 210,409,313 804,934,973 60,181,183 Affiliated investments, at value -- -- -- -- -- Repurchase agreement 14,205,000 1,402,000 4,362,000 23,520,000 948,000 -------------- ----------- ----------- ------------ ----------- Total investments, at value 1,053,252,663 836,518,901 214,771,313 828,454,973 61,129,183 Cash 644 940 43 609 52,478 Cash at broker -- -- -- -- -- Foreign currency (cost of $819,307, $1,496 and $74, respectively) 818,468 1,555 -- -- -- Receivable for: Investments sold 7,960,703 9,157,360 3,641,961 -- 2,335,740 Capital stock sold 94,911 130,578 234,368 636,266 291,573 Interest 1,353 134 416 2,241 90 Dividends 2,286,150 334,154 6,862 286,162 10,398 Foreign tax reclaim 634,554 -- -- -- 286 Expense reimbursement due from Investment Advisor 2,835 -- 2,548 -- -- Deferred compensation plan 35,549 19,957 5,126 7,419 2,589 Other assets -- 410 -- 5,365 -- -------------- ----------- ----------- ------------ ----------- Total assets 1,065,087,830 846,163,989 218,662,637 829,393,035 63,822,337 - ---------------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to custodian bank -- -- -- -- -- Payable for: Investments purchased 9,703,944 2,513,948 3,437,075 -- 2,805,114 Capital stock redeemed 905,537 1,078,970 301,653 1,229,915 84,348 Written options, at value (premium of $3,680) -- -- -- -- 6,600 Futures variation margin -- -- -- -- -- Distributions -- -- -- -- -- Investment advisory fee 751,903 563,819 162,070 531,202 43,602 Transfer agent fee 65,103 82,666 39,502 110,086 18,115 Pricing and bookkeeping fees 15,231 13,445 8,301 13,184 4,911 Merger costs -- -- -- -- -- Directors' fees 839 589 139 589 314 Audit fee 30,898 30,738 29,008 23,508 21,301 Service and distribution fees 30,060 15,132 -- 29,609 7,483 Custody fee 44,234 2,558 1,342 1,758 1,434 Legal fee 6,302 6,200 2,124 6,631 500 Registration fees -- -- -- -- 26 Reports to shareholders 46,540 68,148 15,692 55,059 564 Chief compliance officer expenses and fees 1,452 1,220 683 1,248 537 Deferred compensation plan 35,549 19,957 5,126 7,419 2,589 Other liabilities 1,215 2,599 1,148 2,407 4,313 -------------- ----------- ----------- ------------ ----------- Total liabilities 11,638,807 4,399,989 4,003,863 2,012,615 3,001,751 NET ASSETS 1,053,449,023 841,764,000 214,658,774 827,380,420 60,820,586 - ---------------------------------------------------------------------------------------------------------------------------------- NET ASSETS CONSIST OF Paid-in capital 1,021,468,201 709,984,046 175,303,000 399,677,508 47,513,024 Undistributed (overdistributed) net investment income 11,591,579 -- -- (4,839) -- Accumulated net investment loss -- (11,999) -- -- (10,877) Accumulated net realized gain (loss) (136,718,194) (11,365,307) 1,869,746 75,696,430 2,940,077 Unrealized appreciation (depreciation) on: Investments 157,099,675 143,157,201 37,486,028 352,011,321 10,381,282 Foreign currency translations 7,762 59 -- -- -- Futures contracts -- -- -- -- -- Written options -- -- -- -- (2,920) -------------- ----------- ----------- ------------ ----------- NET ASSETS 1,053,449,023 841,764,000 214,658,774 827,380,420 60,820,586
FIXED STRATEGIC SHORT TERM INCOME INVESTOR BALANCED BOND SECURITIES FUND ($) FUND ($) FUND ($) FUND ($) - -------------------------------------------------------------------------------------------------------------------- ASSETS Unaffiliated investments, at identified cost (including short-term obligations) 434,797,082 294,462,579 421,793,972 241,601,656 Affiliated investments, at identified cost -- -- 1,523,251 -- -------------- ----------- ----------- ------------ Total investments, at identified cost 434,797,082 294,462,579 423,317,223 241,601,656 -------------- ----------- ----------- ------------ Unaffiliated investments, at value 400,972,529 305,332,476 413,448,148 241,398,186 Affiliated investments, at value -- -- 1,496,161 -- Repurchase agreement 128,038,000 8,699,000 6,291,000 3,858,000 -------------- ----------- ----------- ------------ Total investments, at value 529,010,529 314,031,476 421,235,309 245,256,186 Cash 214,311 -- 258 287 Cash at broker -- 16,000 -- -- Foreign currency (cost of $819,307, $1,496 and $74, respectively) 74 -- -- -- Receivable for: Investments sold 4,119,112 6,253,031 -- 4,254,753 Capital stock sold 1,270,011 113,473 162,827 275,893 Interest 12,200 950,509 2,919,658 1,878,130 Dividends 490,004 197,882 -- -- Foreign tax reclaim 19,634 793 -- -- Expense reimbursement due from Investment Advisor -- -- -- -- Deferred compensation plan 15,378 5,011 13,907 4,861 Other assets 274 -- -- -- -------------- ----------- ----------- ------------ Total assets 535,151,527 321,568,175 424,331,959 251,670,110 - -------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to custodian bank -- 15,073 -- -- Payable for: Investments purchased 8,018,142 5,769,044 19,052 773,544 Capital stock redeemed 699,846 1,530,291 440,775 831,651 Written options, at value (premium of $3,680) -- -- -- -- Futures variation margin -- 14,639 94,106 15,720 Distributions -- -- 894,334 82,984 Investment advisory fee 329,884 142,599 147,594 109,631 Transfer agent fee 69,181 86,961 38,071 79,226 Pricing and bookkeeping fees 15,379 13,915 6,774 12,875 Merger costs -- -- 43,439 82,310 Directors' fees 339 2,487 -- 865 Audit fee 28,468 34,797 31,470 33,699 Service and distribution fees 107,879 9,260 35,936 9,234 Custody fee 4,515 1,972 933 2,172 Legal fee 3,440 -- 3,000 4,000 Registration fees -- -- 11,922 -- Reports to shareholders 39,360 22,253 26,876 31,941 Chief compliance officer expenses and fees 948 804 919 738 Deferred compensation plan 15,378 5,011 13,907 4,861 Other liabilities 1,709 10,946 7,860 1,514 -------------- ----------- ----------- ------------ Total liabilities 9,334,468 7,660,052 1,816,968 2,076,965 NET ASSETS 525,817,059 313,908,123 422,514,991 249,593,145 - -------------------------------------------------------------------------------------------------------------------- NET ASSETS CONSIST OF Paid-in capital 402,801,205 324,089,439 427,251,031 245,429,773 Undistributed (overdistributed) net investment income 2,283,811 811,316 320,679 (304,997) Accumulated net investment loss -- -- -- -- Accumulated net realized gain (loss) 26,516,389 (30,556,060) (2,939,649) 813,839 Unrealized appreciation (depreciation) on: Investments 94,213,447 19,568,897 (2,081,914) 3,654,530 Foreign currency translations 2,207 -- -- -- Futures contracts -- (5,469) (35,156) -- Written options -- -- -- -- -------------- ----------- ----------- ------------ NET ASSETS 525,817,059 313,908,123 422,514,991 249,593,145
OREGON INTERMEDIATE MUNICIPAL CONSERVATIVE DAILY BOND HIGH YIELD INCOME FUND ($) FUND ($) COMPANY ($) - -------------------------------------------------------------------------------------------------------- ASSETS Unaffiliated investments, at identified cost (including short-term obligations) 390,876,628 1,525,099,495 492,590,079 Affiliated investments, at identified cost -- -- -- -------------- -------------- ------------ Total investments, at identified cost 390,876,628 1,525,099,495 492,590,079 -------------- -------------- ------------ Unaffiliated investments, at value 413,609,762 1,469,873,207 492,229,079 Affiliated investments, at value -- -- -- Repurchase agreement -- 71,382,000 361,000 -------------- -------------- ------------ Total investments, at value 413,609,762 1,541,255,207 492,590,079 Cash 30,290 1,515,948 689 Cash at broker -- -- -- Foreign currency (cost of $819,307, $1,496 and $74, respectively) -- -- -- Receivable for: Investments sold -- 7,055,752 -- Capital stock sold 11,818 1,786,351 791,520 Interest 4,693,045 26,405,024 1,135,521 Dividends -- -- -- Foreign tax reclaim -- -- -- Expense reimbursement due from Investment Advisor -- -- -- Deferred compensation plan 5,244 12,187 6,171 Other assets -- -- -- -------------- -------------- ------------ Total assets 418,350,159 1,578,030,469 494,523,980 - -------------------------------------------------------------------------------------------------------- LIABILITIES Payable to custodian bank -- -- -- Payable for: Investments purchased -- 8,685,950 4,995,588 Capital stock redeemed 140,942 3,231,078 1,171,474 Written options, at value (premium of $3,680) -- -- -- Futures variation margin -- -- -- Distributions 338,007 3,773,087 25,844 Investment advisory fee 177,226 737,786 216,931 Transfer agent fee 26,225 115,523 157,098 Pricing and bookkeeping fees 16,515 16,233 14,111 Merger costs -- -- -- Directors' fees 339 839 2,570 Audit fee 30,448 33,439 29,216 Service and distribution fees 2,688 201,981 -- Custody fee 1,557 1,393 2,594 Legal fee 3,056 12,585 6,000 Registration fees -- -- 17,299 Reports to shareholders 8,128 63,639 39,484 Chief compliance officer expenses and fees 876 1,947 964 Deferred compensation plan 5,244 12,187 6,171 Other liabilities 1,572 3,604 15,050 -------------- -------------- ------------ Total liabilities 752,823 16,891,271 6,700,394 NET ASSETS 417,597,336 1,561,139,198 487,823,586 - -------------------------------------------------------------------------------------------------------- NET ASSETS CONSIST OF Paid-in capital 395,554,418 1,562,141,577 487,824,292 Undistributed (overdistributed) net investment income 88,656 (7,581,535) -- Accumulated net investment loss -- -- -- Accumulated net realized gain (loss) (778,872) (9,576,556) (706) Unrealized appreciation (depreciation) on: Investments 22,733,134 16,155,712 -- Foreign currency translations -- -- -- Futures contracts -- -- -- Written options -- -- -- -------------- -------------- ------------ NET ASSETS 417,597,336 1,561,139,198 487,823,586
(a) Class G shares were initially offered on March 18, 2005. See Accompanying Notes to Financial Statements. 112 - 113 Spread STATEMENTS OF ASSETS AND LIABILITIES ___________________________________________ AUGUST 31, 2005 COLUMBIA FUNDS
INTERNATIONAL MID CAP SMALL CAP REAL ESTATE STOCK GROWTH GROWTH EQUITY TECHNOLOGY FUND (a) ($) FUND ($) FUND I ($) FUND ($) FUND ($) - --------------------------------------------------------------------------------------------------------------------------------- CLASS A Net assets 71,269,642 6,077,526 -- 45,756,237 14,696,362 Shares outstanding 4,523,240 274,226 -- 1,643,635 1,676,163 Net asset value per share (b)(c) 15.76 22.16 -- 27.84 8.77 Maximum sales charge 5.75% 5.75% -- 5.75% 5.75% Maximum offering price per share (d) 16.72 23.51 -- 29.54 9.31 - --------------------------------------------------------------------------------------------------------------------------------- CLASS B Net assets 2,025,516 6,377,077 -- 14,393,301 3,183,092 Shares outstanding 782,515 294,011 -- 516,835 371,610 Net asset value and offering price per share (b)(c) 15.37 21.69 -- 27.85 8.57 - --------------------------------------------------------------------------------------------------------------------------------- CLASS C Net assets 903,752 673,774 -- 4,820,846 1,972,160 Shares outstanding 58,576 30,994 -- 173,240 229,677 Net asset value and offering price per share (b)(c) 15.43 21.74 -- 27.83 8.59 - --------------------------------------------------------------------------------------------------------------------------------- CLASS D Net assets 740,261 437,521 -- 4,263,080 22,239 Shares outstanding 47,809 20,150 -- 153,112 2,580 Net asset value and offering price per share (b)(c) 15.48 21.71 -- 27.84 8.62 - --------------------------------------------------------------------------------------------------------------------------------- CLASS G Net assets 4,014,635 723,691 -- -- -- Shares outstanding 261,200 33,451 -- -- -- Net asset value and offering price per share (b)(c) 15.37 21.63 -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- CLASS T Net assets -- 27,969,357 -- -- -- Shares outstanding -- 1,259,882 -- -- -- Net asset value per share (b) -- 22.20 -- -- -- Maximum sales charge -- 5.75% -- -- -- Maximum offering price per share (d) -- 23.55 -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- CLASS Z Net assets 964,495,217 799,505,054 214,658,774 758,146,956 40,946,733 Shares outstanding 60,866,811 35,674,408 7,720,624 27,216,523 4,624,132 Net asset value and offering price per share (c) 15.85 22.41 27.80 27.86 8.86
FIXED STRATEGIC SHORT TERM INCOME INVESTOR BALANCED BOND SECURITIES FUND ($) FUND ($) FUND ($) FUND ($) - ------------------------------------------------------------------------------------------------------------------ CLASS A Net assets 169,339,860 3,377,929 17,003,802 13,260,039 Shares outstanding 7,985,353 155,293 1,985,266 997,065 Net asset value per share (b)(c) 21.21 21.75 8.56 13.30 Maximum sales charge 5.75% 5.75% 4.75% 4.75% Maximum offering price per share (d) 22.50 23.08 8.99 13.96 - ------------------------------------------------------------------------------------------------------------------ CLASS B Net assets 49,318,309 8,149,028 19,417,790 4,113,884 Shares outstanding 2,366,233 375,180 2,267,125 309,336 Net asset value and offering price per share (b)(c) 20.84 21.72 8.56 13.30 - ------------------------------------------------------------------------------------------------------------------ CLASS C Net assets 39,253,281 951,918 2,977,928 233,676 Shares outstanding 1,882,734 43,828 347,686 17,569 Net asset value and offering price per share (b)(c) 20.85 21.72 8.56 13.30 - ------------------------------------------------------------------------------------------------------------------ CLASS D Net assets 525,269 319,787 5,579,063 1,274,493 Shares outstanding 25,209 14,726 651,381 95,834 Net asset value and offering price per share (b)(c) 20.84 21.72 8.56 13.30 - ------------------------------------------------------------------------------------------------------------------ CLASS G Net assets -- -- 597,537 -- Shares outstanding -- -- 69,766 -- Net asset value and offering price per share (b)(c) -- -- 8.56 -- - ------------------------------------------------------------------------------------------------------------------ CLASS T Net assets -- -- 17,974,717 -- Shares outstanding -- -- 2,098,625 -- Net asset value per share (b) -- -- 8.56 -- Maximum sales charge -- -- 4.75% -- Maximum offering price per share (d) -- -- 8.99 -- - ------------------------------------------------------------------------------------------------------------------ CLASS Z Net assets 267,380,340 301,109,461 358,964,154 230,711,053 Shares outstanding 12,572,719 13,852,575 41,910,763 17,347,955 Net asset value and offering price per share (c) 21.27 21.74 8.56 13.30
OREGON INTERMEDIATE MUNICIPAL CONSERVATIVE DAILY BOND HIGH YIELD INCOME FUND ($) FUND ($) COMPANY ($) - ---------------------------------------------------------------------------------------------------- CLASS A Net assets 4,300,367 321,402,471 -- Shares outstanding 345,382 37,299,534 -- Net asset value per share (b)(c) 12.45 8.62 -- Maximum sales charge 3.25% 4.75% -- Maximum offering price per share (d) 12.87 9.05 -- - ---------------------------------------------------------------------------------------------------- CLASS B Net assets 1,226,409 89,101,366 -- Shares outstanding 98,499 10,340,445 -- Net asset value and offering price per share (b)(c) 12.45 8.62 -- - ---------------------------------------------------------------------------------------------------- CLASS C Net assets 600,664 18,002,390 -- Shares outstanding 48,243 2,089,196 -- Net asset value and offering price per share (b)(c) 12.45 8.62 -- - ---------------------------------------------------------------------------------------------------- CLASS D Net assets 763,910 58,739,253 -- Shares outstanding 61,353 6,816,798 -- Net asset value and offering price per share (b)(c) 12.45 8.62 -- - ---------------------------------------------------------------------------------------------------- CLASS G Net assets -- -- -- Shares outstanding -- -- -- Net asset value and offering price per share (b)(c) -- -- -- - ---------------------------------------------------------------------------------------------------- CLASS T Net assets -- -- -- Shares outstanding -- -- -- Net asset value per share (b) -- -- -- Maximum sales charge -- -- -- Maximum offering price per share (d) -- -- -- - ---------------------------------------------------------------------------------------------------- CLASS Z Net assets 410,705,986 1,073,893,718 487,823,586 Shares outstanding 32,985,752 124,627,655 487,824,292 Net asset value and offering price per share (c) 12.45 8.62 1.00
(a) Class G shares were initially offered on March 18, 2005. (b) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. (c) Redemption price per share is equal to net asset value less any applicable redemption fees. (d) On sales of $50,000 or more the offering price is reduced. See Accompanying Notes to Financial Statements. 114 - 115 Spread STATEMENTS OF OPERATIONS _______________________________________________________ FOR THE YEAR ENDED AUGUST 31, 2005 COLUMBIA FUNDS
INTERNATIONAL MID CAP SMALL CAP REAL ESTATE STOCK GROWTH GROWTH EQUITY TECHNOLOGY FUND (a)($) FUND ($) FUND I ($) FUND ($) FUND ($) - ---------------------------------------------------------------------------------------------------------------------------------- NET INVESTMENT INCOME INCOME Dividends 25,104,236 3,484,153 445,446 38,301,337 124,489 Interest 403,849 426,452 63,432 479,981 33,051 Interest from affiliates -- -- -- -- -- Foreign taxes withheld (2,654,061) (37,802) -- (44,418) (10,770) ------------- ---------- ----------- ----------- ---------- Total income 22,854,024 3,872,803 508,878 38,736,900 146,770 - ---------------------------------------------------------------------------------------------------------------------------------- EXPENSES Investment advisory fee 7,248,268 6,887,146 2,723,457 6,719,241 407,571 Distribution fee: Class B 84,405 42,645 -- 101,012 20,743 Class C 5,344 4,311 -- 28,504 8,827 Class D 5,593 4,056 -- 32,425 170 Class G 12,445 4,544 -- -- -- Service fee: Class A 114,547 13,048 -- 101,868 18,799 Class B 28,135 14,215 -- 33,671 6,914 Class C 1,781 1,437 -- 9,501 2,942 Class D 1,864 1,352 -- 10,808 57 Class G 5,744 2,097 -- -- -- Shareholder services fee - Class T -- 81,615 -- -- -- Transfer agent fee 935,272 1,257,102 434,412 1,058,396 149,540 Pricing and bookkeeping fees 173,965 161,452 113,870 159,371 62,614 Directors' fees 22,534 26,870 17,838 27,096 7,593 Custody fee 475,972 36,410 40,420 22,455 15,420 Audit fee 40,346 37,609 35,355 32,803 23,392 Registration fees 124,558 97,462 32,453 97,175 66,673 Merger costs 19,170 -- -- -- -- Chief compliance officer expenses and fees (See Note 4) 6,656 7,037 4,160 7,280 2,703 Non-recurring costs (See Note 11) 14,905 15,365 4,923 16,146 827 Other expenses 164,789 246,411 77,943 240,454 28,215 ------------- ---------- ----------- ----------- ---------- Total Operating Expenses 9,486,293 8,942,184 3,484,831 8,698,206 823,000 Interest expense -- 5,137 7,138 -- -- ------------- ---------- ----------- ----------- ---------- Total Expenses 9,486,293 8,947,321 3,491,969 8,698,206 823,000 Expenses waived/reimbursed by Investment Advisor (102,216) -- -- -- (27,412) Fees waived by Distributor: Class C -- -- -- -- -- Class D -- -- -- -- -- Fees waived by Transfer Agent (707,814) (425,782) -- -- -- Non-recurring costs assumed by Investment Advisor (See Note 11) (14,905) (15,365) (4,923) (16,146) (827) Custody earnings credit (1,296) (2,478) (154) (1,562) (1,126) ------------- ---------- ----------- ----------- ---------- Net Expenses 8,660,062 8,503,696 3,486,892 8,680,498 793,635 ------------- ---------- ----------- ----------- ---------- Net Investment Income (Loss) 14,193,962 (4,630,893) (2,978,014) 30,056,402 (646,865)
FIXED STRATEGIC SHORT TERM INCOME INVESTOR BALANCED BOND SECURITIES FUND ($) FUND ($) FUND ($) FUND ($) - --------------------------------------------------------------------------------------------------------------------- NET INVESTMENT INCOME INCOME Dividends 6,228,328 4,006,594 -- -- Interest 2,984,801 7,302,542 17,604,750 13,984,973 Interest from affiliates -- -- 94,868 -- Foreign taxes withheld (181,607) (4,687) -- -- ------------- ---------- ----------- ----------- Total income 9,031,522 1,304,449 17,699,618 13,984,973 - --------------------------------------------------------------------------------------------------------------------- EXPENSES Investment advisory fee 3,612,063 1,963,794 2,248,697 1,453,869 Distribution fee: Class B 275,539 57,490 166,391 30,615 Class C 217,429 6,350 23,478 1,748 Class D 4,742 2,452 56,030 11,162 Class G -- -- 5,380 -- Service fee: Class A 343,456 7,273 57,565 30,597 Class B 91,846 19,163 55,464 10,205 Class C 72,390 2,117 7,826 583 Class D 1,581 817 18,677 3,721 Class G -- -- 1,242 -- Shareholder services fee - Class T -- -- 28,676 -- Transfer agent fee 778,351 631,898 374,630 534,949 Pricing and bookkeeping fees 166,411 155,497 169,907 136,610 Directors' fees 15,721 19,297 18,754 15,105 Custody fee 54,023 36,449 24,095 21,727 Audit fee 36,869 37,372 34,462 38,302 Registration fees 102,505 63,519 104,529 65,643 Merger costs -- -- 43,439 82,310 Chief compliance officer expenses and fees (See Note 4) 4,970 4,644 5,126 4,053 Non-recurring costs (See Note 11) 8,869 6,932 8,860 5,158 Other expenses 150,284 106,865 97,182 70,985 ------------- ---------- ----------- ----------- Total Operating Expenses 5,937,049 3,121,929 3,550,410 2,517,342 Interest expense -- -- -- -- ------------- ---------- ----------- ----------- Total Expenses 5,937,049 3,121,929 3,550,410 2,517,342 Expenses waived/reimbursed by Investment Advisor -- -- (29,236) -- Fees waived by Distributor: Class C -- -- (18,782) (350) Class D -- -- (44,824) (2,232) Fees waived by Transfer Agent (144,483) -- -- -- Non-recurring costs assumed by Investment Advisor (See Note 11) (8,869) (6,932) (8,860) (5,158) Custody earnings credit (1,398) (1,004) (3,396) (273) ------------- ---------- ----------- ----------- Net Expenses 5,782,299 3,113,993 3,445,312 2,509,329 ------------- ---------- ----------- ----------- Net Investment Income (Loss) 3,249,223 8,190,456 14,254,306 11,475,644
OREGON INTERMEDIATE MUNICIPAL CONSERVATIVE DAILY BOND HIGH YIELD INCOME FUND ($) FUND ($) COMPANY ($) - ---------------------------------------------------------------------------------------------------------- NET INVESTMENT INCOME Income Dividends -- -- -- Interest 19,600,162 110,297,336 14,252,790 Interest from affiliates -- -- -- Foreign taxes withheld -- -- -- ------------- ------------ ------------ Total income 19,600,162 110,297,336 14,252,790 - ---------------------------------------------------------------------------------------------------------- EXPENSES Investment advisory fee 2,132,126 9,467,680 2,773,785 Distribution fee: Class B 9,231 738,175 -- Class C 3,301 158,454 -- Class D 5,875 543,124 -- Class G -- -- -- Service fee: Class A 9,969 838,170 -- Class B 3,077 246,059 -- Class C 1,100 52,818 -- Class D 1,958 181,041 -- Class G -- -- -- Shareholder services fee - Class T -- -- -- Transfer agent fee 238,988 1,593,866 1,175,181 Pricing and bookkeeping fees 170,288 179,701 158,560 Directors' fees 13,178 46,921 25,757 Custody fee 21,147 41,898 22,773 Audit fee 39,287 41,290 31,754 Registration fees 61,593 153,053 54,121 Merger costs -- -- -- Chief compliance officer expenses and fees (See Note 4) 4,731 9,324 5,503 Non-recurring costs (See Note 11) 7,693 30,949 -- Other expenses 57,893 427,697 171,849 ------------- ------------ ------------ Total Operating Expenses 2,781,435 14,750,220 4,419,283 Interest expense -- -- -- ------------- ------------ ------------ Total Expenses 2,781,435 14,750,220 4,419,283 Expenses waived/reimbursed by Investment Advisor -- -- -- Fees waived by Distributor: Class C (1,540) (31,691) -- Class D (2,742) (108,625) -- Fees waived by Transfer Agent -- -- -- Non-recurring costs assumed by Investment Advisor (See Note 11) (7,693) (30,949) -- Custody earnings credit (1,560) (22,438) (3,672) ------------- ------------- ------------ Net Expenses 2,767,900 14,556,517 4,415,611 ------------- ------------- ------------ Net Investment Income (Loss) 16,832,262 95,740,819 9,837,179
(a) Class G shares were initially offered on March 18, 2005. See Accompanying Notes to Financial Statements. 116 - 117 Spread STATEMENTS OF OPERATIONS _______________________________________________________ FOR THE YEAR ENDED AUGUST 31, 2005 COLUMBIA FUNDS
INTERNATIONAL MID CAP SMALL CAP REAL ESTATE STOCK GROWTH GROWTH EQUITY TECHNOLOGY FUND (a)($) FUND ($) FUND I ($) FUND ($) FUND ($) - ---------------------------------------------------------------------------------------------------------------------------------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, FOREIGN CURRENCY, FOREIGN CAPITAL GAINS TAX, FUTURES CONTRACTS AND WRITTEN OPTIONS Net realized gain (loss) on: Unaffiliated investments 64,325,707 119,631,425 102,207,299 81,089,198 6,387,614 Foreign currency transactions (1,643,828) (99) -- -- (1,765) Foreign capital gains tax (185,530) -- -- -- -- Futures contracts -- -- -- -- -- Written options -- -- -- -- (35,239) Net realized loss on violation of investment restriction (See Note 8) -- -- 2,548 -- -- ------------- ----------- ----------- ----------- ----------- Net realized gain (loss) 62,496,349 119,631,326 102,209,847 81,089,198 6,350,610 ------------- ----------- ----------- ----------- ----------- Net change in unrealized appreciation (depreciation) on: Investments 52,990,926 117,840,710 (3,864,358) 74,511,099 8,215,187 Foreign currency translations (6,416) 40 -- -- -- Foreign capital gains tax 69,167 -- -- -- -- Futures contracts -- -- -- -- -- Written options -- -- -- -- (2,920) ------------- ----------- ----------- ----------- ----------- Net change in unrealized appreciation (depreciation) 53,053,677 117,840,750 (3,864,358) 74,511,099 8,212,267 ------------- ----------- ----------- ----------- ----------- Net Gain (Loss) 115,550,026 237,472,076 98,345,489 155,600,297 14,562,877 ------------- ----------- ----------- ----------- ----------- Net Increase Resulting From Operations 129,743,988 232,841,183 95,367,475 185,656,699 13,916,012
FIXED STRATEGIC SHORT TERM INCOME INVESTOR BALANCED BOND SECURITIES FUND ($) FUND ($) FUND ($) FUND ($) - --------------------------------------------------------------------------------------------------------------------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, FOREIGN CURRENCY, FOREIGN CAPITAL GAINS TAX, FUTURES CONTRACTS AND WRITTEN OPTIONS Net realized gain (loss) on: Unaffiliated investments 28,676,406 37,567,601 (1,571,738) 2,330,098 Foreign currency transactions (77,636) -- -- -- Foreign capital gains tax -- -- -- -- Futures contracts -- 797 605,182 56,703 Written options -- -- -- -- Net realized loss on violation of investment restriction (See Note 8) -- -- -- -- ------------- ----------- ----------- ----------- Net realized gain (loss) 28,598,770 37,568,398 (966,556) 2,386,801 ------------- ----------- ----------- ----------- Net change in unrealized appreciation (depreciation) on: Investments 41,408,774 671,594 (3,740,653) (2,844,906) Foreign currency translations 1,826 -- -- -- Foreign capital gains tax -- -- -- -- Futures contracts -- (5,469) 45,001 -- Written options -- -- -- -- ------------- ----------- ----------- ----------- Net change in unrealized appreciation (depreciation) 41,410,600 666,125 (3,695,652) (2,844,906) ------------- ----------- ----------- ----------- Net Gain (Loss) 70,009,370 38,234,523 (4,662,208) (458,105) ------------- ----------- ----------- ----------- Net Increase Resulting From Operations 73,258,593 46,424,979 9,592,098 11,017,539
OREGON INTERMEDIATE MUNICIPAL CONSERVATIVE DAILY BOND HIGH YIELD INCOME FUND ($) FUND ($) COMPANY ($) - -------------------------------------------------------------------------------------------------------------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, FOREIGN CURRENCY, FOREIGN CAPITAL GAINS TAX, FUTURES CONTRACTS AND WRITTEN OPTIONS Net realized gain (loss) on: Unaffiliated investments (962,900) 15,204,376 (706) Foreign currency transactions -- -- -- Foreign capital gains tax -- -- -- Futures contracts 177,629 -- -- Written options -- -- -- Net realized loss on violation of investment restriction (See Note 8) -- -- -- -------------- ------------- --------------- Net realized gain (loss) (785,271) 15,204,376 (706) -------------- ------------- --------------- Net change in unrealized appreciation (depreciation) on: Investments 1,892,472 (23,698,367) -- Foreign currency translations -- -- -- Foreign capital gains tax -- -- -- Futures contracts -- -- -- Written options -- -- -- -------------- ------------- --------------- Net change in unrealized appreciation (depreciation) 1,892,472 (23,698,367) -- -------------- ----------- --------------- Net Gain (Loss) 1,107,201 (8,493,991) (706) -------------- ------------- --------------- Net Increase Resulting From Operations 17,939,463 87,246,828 9,836,473
(a) Class G shares were initially offered on March 18, 2005 See Accompanying Notes to Financial Statements. 118 - 119 Spread STATEMENTS OF CHANGES IN NET ASSETS_____________________________________________ COLUMBIA FUNDS
INTERNATIONAL STOCK FUND MID CAP GROWTH FUND ------------------------------ --------------------------------- YEAR ENDED AUGUST 31, YEAR ENDED AUGUST 31, ------------------------------ --------------------------------- INCREASE (DECREASE) IN NET ASSETS 2005 (b)($) 2004 (b)($) 2005 ($) 2004 (b)($) - -------------------------------------------------------------------------------------------------------------------------------- OPERATIONS Net investment income (loss) 14,193,962 3,691,183 (4,630,893) (7,794,468) Net realized gain on investments and foreign currency, net of foreign capital gains tax 62,496,349 29,666,692 119,631,326 136,610,324 Net change in unrealized appreciation (depreciation) on investments and foreign currency, net of foreign capital gains tax 53,053,677 12,929,801 117,840,750 (178,274,861) -------------- ------------- --------------- -------------- Net increase (decrease) resulting from operations 129,743,988 46,287,676 232,841,183 (49,459,005) - -------------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS From net investment income: Class A (6,207) -- -- -- Class B -- -- -- -- Class C -- -- -- -- Class D -- -- -- -- Class Z (3,041,056) (1,290,808) -- -- From net realized gains: Class A -- -- -- -- Class B -- -- -- -- Class C -- -- -- -- Class D -- -- -- -- Class Z -- -- -- -- -------------- ------------- --------------- -------------- Total distributions to shareholders (3,047,263) (1,290,808) -- -- - -------------------------------------------------------------------------------------------------------------------------------- NET CAPITAL SHARE TRANSACTIONS 332,899,857 267,394,781 (253,558,502) (127,233,529) -------------- ------------- --------------- -------------- REDEMPTION FEES 61,174 68,059 -- -- -------------- ------------- --------------- -------------- Net increase (decrease) in net assets 459,657,756 312,459,708 (20,717,319) (176,692,534) - -------------------------------------------------------------------------------------------------------------------------------- NET ASSETS Beginning of period 593,791,267 281,331,559 862,481,319 1,039,173,853 End of period 1,053,449,023 593,791,267 841,764,000 862,481,319 -------------- ------------- --------------- -------------- Undistributed net investment income, at end of period 11,591,579 2,274,226 -- -- Accumulated net investment loss, at end of period -- -- (11,999) (73,873)
SMALL CAP GROWTH FUND I REAL ESTATE EQUITY FUND ------------------------------ --------------------------------- YEAR ENDED AUGUST 31, YEAR ENDED AUGUST 31, ------------------------------ --------------------------------- INCREASE (DECREASE) IN NET ASSETS 2005 ($) 2004 ($) 2005 ($) 2004 (b)($) - -------------------------------------------------------------------------------------------------------------------------------- OPERATIONS Net investment income (loss) (2,978,014) (7,090,174) 30,056,402 33,479,872 Net realized gain on investments and foreign currency, net of foreign capital gains tax 102,209,847 108,746,196 81,089,198 103,930,894 Net change in unrealized appreciation (depreciation) on investments and foreign currency, net of foreign capital gains tax (3,864,358) (104,998,632) 74,511,099 86,151,012 -------------- ------------- --------------- -------------- Net increase (decrease) resulting from operations 95,367,475 (3,342,610) 185,656,699 223,561,778 - -------------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS From net investment income: Class A -- -- (1,382,574) (812,573) Class B -- -- (366,492) (181,510) Class C -- -- (94,718) (21,166) Class D -- -- (117,799) (96,766) Class Z -- -- (32,021,396) (30,549,898) From net realized gains: Class A -- -- (3,329,894) (191,896) Class B -- -- (1,146,743) (55,846) Class C -- -- (270,229) (4,533) Class D -- -- (366,470) (37,082) Class Z -- -- (77,132,968) (8,007,605) -------------- ------------- --------------- -------------- Total distributions to shareholders -- -- (116,229,283) (39,958,875) - -------------------------------------------------------------------------------------------------------------------------------- NET CAPITAL SHARE TRANSACTIONS (423,725,008) (91,256,656) (165,370,335) (165,633,084) -------------- ------------- --------------- -------------- REDEMPTION FEES -- -- -- -- -------------- ------------- --------------- -------------- Net increase (decrease) in net assets (328,357,533) (94,599,266) (95,942,919) 17,969,819 - -------------------------------------------------------------------------------------------------------------------------------- NET ASSETS Beginning of period 543,016,307 637,615,573 923,323,339 905,353,520 End of period 214,658,774 543,016,307 827,380,420 923,323,339 -------------- ------------- --------------- -------------- Undistributed net investment income, at end of period -- -- (4,839) 2,565,892 Accumulated net investment loss, at end of period -- -- -- --
(a) Class G shares were initially offered on March 18, 2005 (b) Class C shares were initially offered on October 13, 2003. See Accompanying Notes to Financial Statements. 120 - 121 Spread STATEMENTS OF CHANGES IN NET ASSETS ____________________________________________ COLUMBIA FUNDS
TECHNOLOGY FUND STRATEGIC INVESTOR FUND ------------------------------ --------------------------------- YEAR ENDED AUGUST 31, YEAR ENDED AUGUST 31, ------------------------------ --------------------------------- INCREASE (DECREASE) IN NET ASSETS 2005 ($) 2004 (a)($) 2005 ($) 2004 (a)($) - -------------------------------------------------------------------------------------------------------------------------------- OPERATIONS Net investment income (loss) (646,865) (500,247) 3,249,223 1,155,970 Net realized gain (loss) on investments, foreign currency transactions, futures contracts and written options 6,350,610 3,148,988 28,598,770 32,839,116 Net change in unrealized appreciation (depreciation) on investments,foreign currency translations, futures contracts and written options 8,212,267 (1,040,511) 41,410,600 11,369,353 -------------- ------------- --------------- -------------- Net increase resulting from operations 13,916,012 1,608,230 73,258,593 45,364,439 - -------------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS From net investment income: Class A -- -- (167,034) (258,188) Class B -- -- -- -- Class C -- -- -- -- Class D -- -- -- -- Class G -- -- -- -- Class T -- -- -- -- Class Z -- -- (1,065,517) (1,487,644) From net realized gains: Class A -- -- (1,363,900) -- Class B -- -- (348,215) -- Class C -- -- (284,992) -- Class D -- -- (6,971) -- Class Z -- -- (3,186,369) -- -------------- ------------- --------------- -------------- Total distributions to shareholders -- -- (6,422,998) (1,745,832) - -------------------------------------------------------------------------------------------------------------------------------- NET CAPITAL SHARE TRANSACTIONS 11,109,769 12,887,088 49,610,948 74,083,888 -------------- ------------- --------------- -------------- Net increase (decrease) in net assets 25,025,781 14,495,318 116,446,543 117,702,495 - -------------------------------------------------------------------------------------------------------------------------------- NET ASSETS Beginning of period 35,794,805 21,299,487 409,370,516 291,668,021 End of period 60,820,586 35,794,805 525,817,059 409,370,516 -------------- ------------- --------------- -------------- Undistributed net investment income, at end of period -- -- 2,283,811 403,906 Accumulated net investment loss, at end of period (10,877) (4,733) -- --
BALANCED FUND SHORT TERM BOND FUND ------------------------------ --------------------------------- YEAR ENDED AUGUST 31, YEAR ENDED AUGUST 31, ------------------------------ --------------------------------- INCREASE (DECREASE) IN NET ASSETS 2005 ($) 2004 (a)($) 2005 ($) 2004 (a)($) - -------------------------------------------------------------------------------------------------------------------------------- OPERATIONS Net investment income (loss) 8,190,456 10,289,328 14,254,306 11,677,205 Net realized gain (loss) on investments, foreign currency transactions, futures contracts and written options 37,568,398 82,607,475 (966,556) 273,948 Net change in unrealized appreciation (depreciation) on investments,foreign currency translations, futures contracts and written options 666,125 (57,419,638) (3,695,652) 671,338 -------------- ------------- --------------- -------------- Net increase resulting from operations 46,424,979 35,477,165 9,592,098 12,622,491 - -------------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS From net investment income: Class A (56,637) (23,144) (622,607) (587,965) Class B (95,456) (36,893) (438,086) (312,592) Class C (10,210) (2,894) (80,987) (32,292) Class D (4,166) (4,198) (191,610) (283,218) Class G -- -- (17,683) (18,591) Class T -- -- (552,924) (518,577) Class Z (8,917,704) (10,830,515) (12,364,339) (9,814,113) From net realized gains: Class A -- -- -- -- Class B -- -- -- -- Class C -- -- -- -- Class D -- -- -- -- Class Z -- -- -- -- -------------- ------------- --------------- -------------- Total distributions to shareholders (9,084,173) (10,897,644) (14,268,236) (11,567,348) - -------------------------------------------------------------------------------------------------------------------------------- NET CAPITAL SHARE TRANSACTIONS (218,132,925) (175,070,636) (98,307,058) (24,733,033) -------------- ------------- --------------- -------------- Net increase (decrease) in net assets (180,792,119) (150,491,115) (102,983,196) (23,677,890) - -------------------------------------------------------------------------------------------------------------------------------- NET ASSETS Beginning of period 494,700,242 645,191,357 525,498,187 549,176,077 End of period 313,908,123 494,700,242 422,514,991 525,498,187 -------------- ------------- --------------- -------------- Undistributed net investment income, at end of period 811,316 1,334,170 320,679 293,885 Accumulated net investment loss, at end of period -- -- -- --
(a) Class C shares were initially offered on October 13, 2003. See Accompanying Notes to Financial Statements. 122 - 123 Spread STATEMENTS OF CHANGES IN NET ASSETS_____________________________________________ COLUMBIA FUNDS
FIXED INCOME OREGON INTERMEDIATE SECURITIES FUND MUNICIPAL BOND FUND ------------------------------ --------------------------------- YEAR ENDED AUGUST 31, YEAR ENDED AUGUST 31, ------------------------------ --------------------------------- INCREASE (DECREASE) IN NET ASSETS 2005 ($) 2004 (a)($) 2005 ($) 2004 (a)($) - -------------------------------------------------------------------------------------------------------------------------------- OPERATIONS Net investment income 11,475,644 16,516,684 16,832,262 18,807,129 Net realized gain (loss) on investments and futures contracts 2,386,801 6,873,389 (785,271) 3,418,754 Net change in unrealized appreciation (depreciation) on investments and futures contracts (2,844,906) (509,297) 1,892,472 9,460,520 -------------- ------------- --------------- -------------- Net increase resulting from operations 11,017,539 22,880,776 17,939,463 31,686,403 - -------------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS From net investment income: Class A (485,480) (352,163) (147,260) (105,796) Class B (131,271) (142,805) (36,249) (36,225) Class C (7,859) (3,354) (14,421) (3,971) Class D (50,081) (76,542) (25,822) (26,303) Class Z (11,461,497) (16,812,198) (16,563,180) (18,620,689) From net realized gains: Class A (126,359) -- (11,016) (28,392) Class B (41,709) -- (3,546) (15,169) Class C (2,300) -- (1,075) (702) Class D (16,379) -- (2,262) (9,045) Class Z (3,091,100) -- (1,212,920) (5,411,625) -------------- ------------- --------------- -------------- Total distributions to shareholders (15,414,035) (17,387,062) (18,017,751) (24,257,917) - -------------------------------------------------------------------------------------------------------------------------------- NET CAPITAL SHARE TRANSACTIONS (87,279,922) (184,814,748) (22,772,356) (56,244,778) -------------- ------------- --------------- -------------- Net increase (decrease) in net assets (91,676,418) (179,321,034) (22,850,644) (48,816,292) - -------------------------------------------------------------------------------------------------------------------------------- NET ASSETS Beginning of period 341,269,563 520,590,597 440,447,980 489,264,272 End of period 249,593,145 341,269,563 417,597,336 440,447,980 -------------- ------------- --------------- -------------- Undistributed (overdistributed) net investment income, at end of period (304,997) (766,809) 88,656 129,015
CONSERVATIVE HIGH YIELD FUND DAILY INCOME COMPANY ------------------------------ --------------------------------- YEAR ENDED AUGUST 31, YEAR ENDED AUGUST 31, ------------------------------ --------------------------------- INCREASE (DECREASE) IN NET ASSETS 2005 ($) 2004 (a)($) 2005 ($) 2004 ($) - -------------------------------------------------------------------------------------------------------------------------------- OPERATIONS Net investment income 95,740,819 102,105,979 9,837,179 2,925,450 Net realized gain (loss) on investments and futures contracts 15,204,376 23,256,561 (706) -- Net change in unrealized appreciation (depreciation) on investments and futures contracts (23,698,367) 23,594,415 -- -- -------------- ------------- --------------- -------------- Net increase resulting from operations 87,246,828 148,956,955 9,836,473 2,925,450 - -------------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS From net investment income: Class A (20,080,465) (16,842,377) -- -- Class B (5,162,031) (5,543,127) -- -- Class C (1,139,377) (651,730) -- -- Class D (3,908,977) (5,747,649) -- -- Class Z (72,953,508) (81,901,552) (9,837,179) (2,925,450) From net realized gains: Class A -- -- -- -- Class B -- -- -- -- Class C -- -- -- -- Class D -- -- -- -- Class Z -- -- -- -- -------------- ------------- --------------- -------------- Total distributions to shareholders (103,244,358) (110,686,435) (9,837,179) (2,925,450) - -------------------------------------------------------------------------------------------------------------------------------- NET CAPITAL SHARE TRANSACTIONS (154,177,592) 108,928,738 (173,289,254) (237,050,335) -------------- ------------- --------------- -------------- Net increase (decrease) in net assets (170,175,122) 147,199,258 (173,289,960) (237,050,335) - -------------------------------------------------------------------------------------------------------------------------------- NET ASSETS Beginning of period 1,731,314,320 1,584,115,062 661,113,546 898,163,881 End of period 1,561,139,198 1,731,314,320 487,823,586 661,113,546 -------------- ------------- --------------- -------------- Undistributed (overdistributed) net investment income, at end of period (7,581,535) (8,565,037) -- --
(a) Class C shares were initially offered on October 13, 2003. See Accompanying Notes to Financial Statements. 124 - 125 Spread STATEMENTS OF CHANGES IN NET ASSETS - CAPITAL STOCK ACTIVITY ___________________ COLUMBIA FUNDS
INTERNATIONAL STOCK FUND ------------------------------------------------------------------ YEAR ENDED YEAR ENDED AUGUST 31, 2005 (a) AUGUST 31, 2004 (b) ------------------------------ --------------------------------- SHARES DOLLARS ($) SHARES DOLLARS ($) - -------------------------------------------------------------------------------------------------------------------------------- CLASS A Subscriptions 279,759 4,113,764 373,131 4,764,290 Proceeds received in connection with merger 2,958,672 45,540,845 -- -- Distributions reinvested 376 5,548 -- -- Redemptions (565,273) (8,373,600) (433,072) (5,595,729) -------------- ------------- --------------- -------------- Net increase (decrease) 2,673,534 41,286,557 (59,941) (831,439) CLASS B Subscriptions 189,308 2,728,980 257,984 3,329,492 Proceeds received in connection with merger 63,132 950,545 -- -- Redemptions (267,694) (3,839,600) (378,452) (4,865,635) -------------- ------------- --------------- -------------- Net increase (decrease) (15,254) (160,075) (120,468) (1,536,143) CLASS C Subscriptions 26,606 389,968 77,717 997,912 Proceeds received in connection with merger 6,046 91,380 -- -- Redemptions (23,189) (336,954) (28,604) (374,843) -------------- ------------- --------------- -------------- Net increase 9,463 144,394 49,113 623,069 CLASS D Subscriptions 3,721 53,487 8,022 101,833 Redemptions (13,060) (187,460) (7,016) (89,891) -------------- ------------- --------------- -------------- Net increase (decrease) (9,339) (133,973) 1,006 11,942 CLASS G Subscriptions 1,434 20,898 -- -- Proceeds received in connection with merger 317,111 4,776,315 -- -- Redemptions (57,345) (839,582) -- -- -------------- ------------- --------------- -------------- Net increase (decrease) 261,200 3,957,631 -- -- CLASS T Subscriptions -- -- -- -- Redemptions -- -- -- -- -------------- ------------- --------------- -------------- Net decrease -- -- -- -- CLASS Z Subscriptions 11,577,399 169,031,615 26,956,809 352,679,563 Proceeds received in connection with merger 27,533,402 425,784,235 -- -- Distributions reinvested 61,891 916,609 44,157 563,444 Redemptions (20,776,995) (307,927,136) (6,345,590) (84,115,655) -------------- ------------- --------------- -------------- Net increase (decrease) 18,395,697 287,805,323 20,655,376 269,127,352
MID CAP GROWTH FUND ------------------------------------------------------------------ YEAR ENDED YEAR ENDED AUGUST 31, 2005 AUGUST 31, 2004 (b) ------------------------------ --------------------------------- SHARES DOLLARS ($) SHARES DOLLARS ($) - -------------------------------------------------------------------------------------------------------------------------------- CLASS A Subscriptions 132,045 2,663,508 291,660 5,434,656 Proceeds received in connection with merger -- -- -- -- Distributions reinvested -- -- -- -- Redemptions (118,711) (2,353,815) (280,956) (5,162,016) -------------- ------------- --------------- -------------- Net increase (decrease) 13,334 309,693 10,704 272,640 CLASS B Subscriptions 61,503 1,216,834 125,421 2,339,336 Proceeds received in connection with merger -- -- -- -- Redemptions (70,619) (1,352,521) (58,231) (1,066,216) -------------- ------------- --------------- -------------- Net increase (decrease) (9,116) (135,687) 67,190 1,273,120 CLASS C Subscriptions 15,372 305,772 35,421 677,522 Proceeds received in connection with merger -- -- -- -- Redemptions (14,200) (278,993) (5,599) (102,551) -------------- ------------- --------------- -------------- Net increase 1,172 26,779 29,822 574,971 CLASS D Subscriptions 776 14,660 3,419 61,969 Redemptions (16,346) (318,047) (8,721) (155,931) -------------- ------------- --------------- -------------- Net increase (decrease) (15,570) (303,387) (5,302) (93,962) CLASS G Subscriptions 802 15,464 1,362 25,257 Proceeds received in connection with merger -- -- -- -- Redemptions (6,064) (116,633) (7,466) (136,718) -------------- ------------- --------------- -------------- Net increase (decrease) (5,262) (101,169) (6,104) (111,461) CLASS T Subscriptions 15,597 312,764 26,462 498,501 Redemptions (237,908) (4,717,219) (195,050) (3,653,424) -------------- ------------- --------------- -------------- Net decrease (222,311) (4,404,455) (168,588) (3,154,923) CLASS Z Subscriptions 3,792,797 75,115,004 6,071,998 114,038,896 Proceeds received in connection with merger -- -- -- -- Distributions reinvested -- -- -- -- Redemptions (16,316,370) (324,065,280) (12,860,265) (240,032,810) -------------- ------------- --------------- -------------- Net increase (decrease) (12,523,573) (248,950,276) (6,788,267) (125,993,914)
(a) Class G shares were initially offered on March 18, 2005. (b) Class C shares were initially offered on October 13, 2003. See Accompanying Notes to Financial Statements. 126 - 127 Spread STATEMENTS OF CHANGES IN NET ASSETS - CAPITAL STOCK ACTIVITY ___________________ COLUMBIA FUNDS
SMALL CAP GROWTH FUND I ------------------------------------------------------------------ YEAR ENDED YEAR ENDED AUGUST 31, 2005 AUGUST 31, 2004 ------------------------------ --------------------------------- SHARES DOLLARS ($) SHARES DOLLARS ($) - -------------------------------------------------------------------------------------------------------------------------------- CLASS A Subscriptions -- -- -- -- Distributions reinvested -- -- -- -- Redemptions -- -- -- -- -------------- ------------- --------------- -------------- Net increase -- -- -- -- CLASS B Subscriptions -- -- -- -- Distributions reinvested -- -- -- -- Redemptions -- -- -- -- -------------- ------------- --------------- -------------- Net increase -- -- -- -- CLASS C Subscriptions -- -- -- -- Distributions reinvested -- -- -- -- Redemptions -- -- -- -- -------------- ------------- --------------- -------------- Net increase -- -- -- -- CLASS D Subscriptions -- -- -- -- Distributions reinvested -- -- -- -- Redemptions -- -- -- -- -------------- ------------- --------------- -------------- Net decrease -- -- -- -- CLASS Z Subscriptions 1,826,694 44,583,055 10,261,845 240,997,658 Distributions reinvested -- -- -- -- Redemptions (19,575,324) (468,308,063) (14,285,853) (332,254,314) -------------- ------------- --------------- -------------- Net decrease (17,748,630) (423,725,008) (4,024,008) (91,256,656)
REAL ESTATE EQUITY FUND ------------------------------------------------------------------ YEAR ENDED YEAR ENDED AUGUST 31, 2005 AUGUST 31, 2004 (a) ------------------------------ --------------------------------- SHARES DOLLARS ($) SHARES DOLLARS ($) - -------------------------------------------------------------------------------------------------------------------------------- CLASS A Subscriptions 837,311 22,058,971 1,626,030 36,784,752 Distributions reinvested 163,062 4,273,318 38,787 907,726 Redemptions (634,655) (16,663,423) (974,687) (22,619,991) -------------- ------------- --------------- -------------- Net increase 365,718 9,668,866 690,130 15,072,487 CLASS B Subscriptions 167,187 4,458,167 294,726 6,857,490 Distributions reinvested 43,178 1,134,109 7,307 170,161 Redemptions (132,394) (3,513,324) (90,228) (2,141,291) -------------- ------------- --------------- -------------- Net increase 77,971 2,078,952 211,805 4,886,360 CLASS C Subscriptions 102,777 2,696,606 106,764 2,516,283 Distributions reinvested 12,459 327,172 954 22,917 Redemptions (35,984) (961,897) (13,730) (323,033) -------------- ------------- --------------- -------------- Net increase 79,252 2,061,881 93,988 2,216,167 CLASS D Subscriptions 5,615 154,473 45,881 1,008,069 Distributions reinvested 14,938 392,365 4,705 107,738 Redemptions (26,025) (701,268) (56,804) (1,309,816) -------------- ------------- --------------- -------------- Net decrease (5,472) (154,430) (6,218) (194,009) CLASS Z Subscriptions 5,988,150 158,289,129 15,372,264 353,978,184 Distributions reinvested 3,174,740 83,157,572 1,287,979 29,504,145 Redemptions (16,041,455) (420,472,305) (24,582,645) (571,096,418) -------------- ------------- --------------- -------------- Net decrease (6,878,565) (179,025,604) (7,922,402) (187,614,089)
(a) Class C shares were initially offered on October 13, 2003. See Accompanying Notes to Financial Statements. 128 - 129 Spread STATEMENTS OF CHANGES IN NET ASSETS - CAPITAL STOCK ACTIVITY ___________________ COLUMBIA FUNDS
TECHNOLOGY FUND ------------------------------------------------------------------ YEAR ENDED YEAR ENDED AUGUST 31, 2005 AUGUST 31, 2004 (a) ------------------------------ --------------------------------- SHARES DOLLARS ($) SHARES DOLLARS ($) - -------------------------------------------------------------------------------------------------------------------------------- CLASS A Subscriptions 1,524,022 12,081,354 618,899 4,301,075 Distributions reinvested -- -- -- -- Redemptions (281,238) (2,203,178) (249,120) (1,754,239) -------------- ------------- --------------- -------------- Net increase 1,242,784 9,878,176 369,779 2,546,836 CLASS B Subscriptions 209,759 1,613,063 504,341 3,487,212 Distributions reinvested -- -- -- -- Redemptions (181,799) (1,399,566) (373,299) (2,552,196) -------------- ------------- --------------- -------------- Net increase 27,960 213,497 131,042 935,016 CLASS C Subscriptions 199,364 1,564,179 92,300 649,419 Distributions reinvested -- -- -- -- Redemptions (45,764) (337,505) (16,223) (116,780) -------------- ------------- --------------- -------------- Net increase 153,600 1,226,674 76,077 532,639 CLASS D Subscriptions 189 1,409 7,740 48,269 Distributions reinvested -- -- -- -- Redemptions (929) (7,079) (6,929) (49,293) -------------- ------------- --------------- -------------- Net increase (decrease) (740) (5,670) 811 (1,024) CLASS Z Subscriptions 2,763,431 21,422,105 5,040,767 35,087,433 Distributions reinvested -- -- -- -- Redemptions (2,761,350) (21,625,013) (3,732,749) (26,213,812) -------------- ------------- --------------- -------------- Net increase (decrease) 2,081 (202,908) 1,308,018 8,873,621
STRATEGIC INVESTOR FUND ------------------------------------------------------------------ YEAR ENDED YEAR ENDED AUGUST 31, 2005 AUGUST 31, 2004 (a) ------------------------------ --------------------------------- SHARES DOLLARS ($) SHARES DOLLARS ($) - -------------------------------------------------------------------------------------------------------------------------------- CLASS A Subscriptions 3,503,422 69,841,011 2,239,525 40,978,091 Distributions reinvested 73,076 1,460,064 13,874 239,722 Redemptions (1,012,041) (20,387,801) (602,009) (10,711,424) -------------- ------------- --------------- -------------- Net increase 2,564,457 50,913,274 1,651,390 30,506,389 CLASS B Subscriptions 1,402,288 27,555,529 1,117,349 20,292,528 Distributions reinvested 15,739 310,686 -- -- Redemptions (266,308) (5,272,198) (117,595) (2,110,515) -------------- ------------- --------------- -------------- Net increase 1,151,719 22,594,017 999,754 18,182,013 CLASS C Subscriptions 1,185,138 23,122,317 842,913 15,346,291 Distributions reinvested 12,557 248,001 -- -- Redemptions (130,193) (2,596,010) (27,681) (499,929) -------------- ------------- --------------- -------------- Net increase 1,067,502 20,774,308 815,232 14,846,362 CLASS D Subscriptions 431 8,429 1,168 20,852 Distributions reinvested 318 6,281 -- -- Redemptions (13,676) (270,375) (7,595) (136,369) -------------- ------------- --------------- -------------- Net increase (decrease) (12,927) (255,665) (6,427) (115,517) CLASS Z Subscriptions 3,419,506 68,011,658 5,588,367 100,270,955 Distributions reinvested 206,006 4,120,033 85,074 1,470,072 Redemptions (5,826,486) (116,546,677) (5,130,203) (91,076,386) -------------- ------------- --------------- -------------- Net increase (decrease) (2,200,974) (44,414,986) 543,238 10,664,641
(a) Class C shares were initially offered on October 13, 2003. See Accompanying Notes to Financial Statements. 130 - 131 Spread STATEMENTS OF CHANGES IN NET ASSETS - CAPITAL STOCK ACTIVITY ___________________ COLUMBIA FUNDS
BALANCED FUND ------------------------------------------------------------------ YEAR ENDED YEAR ENDED AUGUST 31, 2005 AUGUST 31, 2004 (a) ------------------------------ --------------------------------- SHARES DOLLARS ($) SHARES DOLLARS ($) - -------------------------------------------------------------------------------------------------------------------------------- CLASS A Subscriptions 78,005 1,630,459 110,630 2,249,214 Distributions reinvested 2,421 50,125 1,059 21,473 Redemptions (54,929) (1,142,204) (16,827) (342,215) -------------- ------------- --------------- -------------- Net increase (decrease) 25,497 538,380 94,862 1,928,472 CLASS B Subscriptions 92,055 1,914,875 254,329 5,127,102 Distributions reinvested 3,941 81,752 1,523 30,867 Redemptions (88,265) (1,827,580) (63,198) (1,271,030) -------------- ------------- --------------- -------------- Net increase (decrease) 7,731 169,047 192,654 3,886,939 CLASS C Subscriptions 21,016 432,954 41,424 839,284 Distributions reinvested 399 8,303 136 2,777 Redemptions (14,395) (301,955) (4,752) (94,839) -------------- ------------- --------------- -------------- Net increase (decrease) 7,020 139,302 36,808 747,222 CLASS D Subscriptions 60 1,264 7,349 141,785 Distributions reinvested 158 3,261 194 3,858 Redemptions (3,702) (75,016) (29,534) (593,961) -------------- ------------- --------------- -------------- Net decrease (3,484) (70,491) (21,991) (448,318) CLASS G Subscriptions -- -- -- -- Distributions reinvested -- -- -- -- Redemptions -- -- -- -- -------------- ------------- --------------- -------------- Net decrease -- -- -- -- CLASS T Subscriptions -- -- -- -- Distributions reinvested -- -- -- -- Redemptions -- -- -- -- -------------- ------------- --------------- -------------- Net decrease -- -- -- -- CLASS Z Subscriptions 1,751,820 36,254,816 3,762,668 75,662,935 Distributions reinvested 423,331 8,735,210 535,817 10,708,630 Redemptions (12,705,031) (263,899,189) (13,282,884) (267,556,516) -------------- ------------- --------------- -------------- Net decrease (10,529,880) (218,909,163) (8,984,399) (181,184,951)
SHORT TERM BOND FUND ------------------------------------------------------------------ YEAR ENDED YEAR ENDED AUGUST 31, 2005 AUGUST 31, 2004 (a) ------------------------------ --------------------------------- SHARES DOLLARS ($) SHARES DOLLARS ($) - -------------------------------------------------------------------------------------------------------------------------------- CLASS A Subscriptions 659,408 5,670,974 2,363,890 20,470,127 Distributions reinvested 58,612 503,267 55,629 481,353 Redemptions (1,989,425) (17,081,156) (3,483,902) (30,155,847) -------------- ------------- --------------- -------------- Net increase (decrease) (1,271,405) (10,906,915) (1,064,383) (9,204,367) CLASS B Subscriptions 412,736 3,547,791 1,020,370 8,811,024 Distributions reinvested 40,425 347,015 28,513 246,689 Redemptions (1,093,205) (9,392,644) (1,268,886) (10,976,173) -------------- ------------- --------------- -------------- Net increase (decrease) (640,044) (5,497,838) (220,003) (1,918,460) CLASS C Subscriptions 192,619 1,655,316 446,619 3,866,656 Distributions reinvested 7,367 63,242 3,243 28,007 Redemptions (214,291) (1,841,047) (87,871) (758,972) -------------- ------------- --------------- -------------- Net increase (decrease) (14,305) (122,489) 361,991 3,135,691 CLASS D Subscriptions 44,586 383,154 195,345 1,693,396 Distributions reinvested 18,253 156,740 25,582 221,473 Redemptions (546,393) (4,694,737) (1,232,826) (10,651,859) -------------- ------------- --------------- -------------- Net decrease (483,554) (4,154,843) (1,011,899) (8,736,990) CLASS G Subscriptions 84 720 584 5,059 Distributions reinvested 2,010 17,259 2,071 17,922 Redemptions (54,572) (468,455) (67,631) (585,284) -------------- ------------- --------------- -------------- Net decrease (52,478) (450,476) (64,976) (562,303) CLASS T Subscriptions 60,120 515,692 49,312 426,415 Distributions reinvested 56,311 483,377 51,571 446,329 Redemptions (466,198) (4,003,233) (926,216) (7,999,639) -------------- ------------- --------------- -------------- Net decrease (349,767) (3,004,164) (825,333) (7,126,895) CLASS Z Subscriptions 17,454,168 150,005,109 27,479,655 237,930,286 Distributions reinvested 366,185 3,144,892 389,324 3,368,689 Redemptions (26,482,766) (227,320,334) (27,927,420) (241,618,684) -------------- ------------- --------------- -------------- Net decrease (8,662,413) (74,170,333) (58,441) (319,709)
(a) Class C shares were initially offered on October 13, 2003. See Accompanying Notes to Financial Statements. 132 - 133 Spread STATEMENTS OF CHANGES IN NET ASSETS - CAPITAL STOCK ACTIVITY ___________________ COLUMBIA FUNDS
FIXED INCOME SECURITIES FUND ------------------------------------------------------------------ YEAR ENDED YEAR ENDED AUGUST 31, 2005 AUGUST 31, 2004 (a) ------------------------------ --------------------------------- SHARES DOLLARS ($) SHARES DOLLARS ($) - -------------------------------------------------------------------------------------------------------------------------------- CLASS A Subscriptions 468,292 6,254,330 428,638 5,773,085 Distributions reinvested 42,773 570,477 23,362 314,190 Redemptions (307,990) (4,103,994) (220,544) (2,972,153) -------------- ------------- --------------- -------------- Net increase 203,075 2,720,813 231,456 3,115,122 CLASS B Subscriptions 51,113 679,018 118,362 1,602,183 Distributions reinvested 10,578 141,164 8,019 107,908 Redemptions (73,754) (984,206) (135,602) (1,820,197) -------------- ------------- --------------- -------------- Net increase (decrease) (12,063) (164,024) (9,221) (110,106) CLASS C Subscriptions 17,573 234,184 17,216 232,958 Distributions reinvested 540 7,201 209 2,809 Redemptions (12,287) (162,965) (5,682) (76,813) -------------- ------------- --------------- -------------- Net increase 5,826 78,420 11,743 158,954 CLASS D Subscriptions 1,832 24,350 2,595 34,899 Distributions reinvested 2,862 38,204 3,148 42,410 Redemptions (38,236) (509,586) (73,680) (981,085) -------------- ------------- --------------- -------------- Net increase (decrease) (33,542) (447,032) (67,937) (903,776) CLASS Z Subscriptions 3,005,973 40,115,004 5,273,336 71,044,891 Distributions reinvested 991,041 13,230,685 1,165,214 15,695,834 Redemptions (10,699,274) (142,813,788) (20,329,678) (273,815,667) -------------- ------------- --------------- -------------- Net decrease (6,702,260) (89,468,099) (13,891,128) (187,074,942)
OREGON INTERMEDIATE MUNICIPAL BOND FUND ------------------------------------------------------------------ YEAR ENDED YEAR ENDED AUGUST 31, 2005 AUGUST 31, 2004 (a) ------------------------------ --------------------------------- SHARES DOLLARS ($) SHARES DOLLARS ($) - -------------------------------------------------------------------------------------------------------------------------------- CLASS A Subscriptions 65,259 807,387 170,654 2,095,832 Distributions reinvested 6,390 79,331 6,574 81,626 Redemptions (21,845) (270,629) (56,206) (688,255) -------------- ------------- --------------- -------------- Net increase 49,804 616,089 121,022 1,489,203 CLASS B Subscriptions 7,732 96,051 35,938 446,223 Distributions reinvested 1,677 20,819 2,314 28,769 Redemptions (6,506) (80,715) (24,250) (302,376) -------------- ------------- --------------- -------------- Net increase (decrease) 2,903 36,155 14,002 172,616 CLASS C Subscriptions 29,016 360,635 22,201 277,202 Distributions reinvested 814 10,104 227 2,808 Redemptions (3,931) (48,966) (84) (1,027) -------------- ------------- --------------- -------------- Net increase 25,899 321,773 22,344 278,983 CLASS D Subscriptions -- -- 12,020 148,564 Distributions reinvested 1,550 19,245 2,010 24,984 Redemptions (3,669) (45,705) (7,665) (95,185) -------------- ------------- --------------- -------------- Net increase (decrease) (2,119) (26,460) 6,365 78,363 CLASS Z Subscriptions 2,480,673 30,813,256 3,104,735 38,548,478 Distributions reinvested 1,089,490 13,526,156 1,524,565 18,948,258 Redemptions (5,480,491) (68,059,325) (9,361,486) (115,760,679) -------------- ------------- --------------- -------------- Net decrease (1,910,328) (23,719,913) (4,732,186) (58,263,943)
(a) Class C shares were initially offered on October 13, 2003. See Accompanying Notes to Financial Statements. 134 - 135 Spread STATEMENTS OF CHANGES IN NET ASSETS - CAPITAL STOCK ACTIVITY ___________________ COLUMBIA FUNDS
CONSERVATIVE HIGH YIELD FUND ------------------------------------------------------------------ YEAR ENDED YEAR ENDED AUGUST 31, 2005 AUGUST 31, 2004 (a) ------------------------------ --------------------------------- SHARES DOLLARS ($) SHARES DOLLARS ($) - -------------------------------------------------------------------------------------------------------------------------------- CLASS A Subscriptions 13,423,846 117,028,635 26,673,537 230,909,589 Distributions reinvested 2,065,131 17,948,131 1,708,530 14,793,686 Redemptions (16,837,776) (146,110,417) (12,505,103) (108,035,805) -------------- ------------- --------------- -------------- Net increase (decrease) (1,348,799) (11,133,651) 15,876,964 137,667,470 CLASS B Subscriptions 862,559 7,531,933 3,063,956 26,566,619 Distributions reinvested 389,458 3,385,348 405,219 3,509,869 Redemptions (2,653,951) (23,007,017) (2,325,212) (20,086,982) -------------- ------------- --------------- -------------- Net increase (decrease) (1,401,934) (12,089,736) 1,143,963 9,989,506 CLASS C Subscriptions 762,137 6,674,038 2,692,176 23,449,925 Distributions reinvested 71,725 623,538 40,122 346,368 Redemptions (1,060,783) (9,187,204) (416,181) (3,598,943) -------------- ------------- --------------- -------------- Net increase (decrease) (226,921) (1,889,628) 2,316,117 20,197,350 CLASS D Subscriptions 146,777 1,283,654 1,187,729 10,250,062 Distributions reinvested 265,523 2,309,840 379,149 3,285,854 Redemptions (3,590,651) (31,251,310) (3,773,325) (32,589,124) -------------- ------------- --------------- -------------- Net decrease (3,178,351) (27,657,816) (2,206,447) (19,053,208) CLASS Z Subscriptions 32,414,551 282,996,586 71,607,065 621,117,899 Distributions reinvested 3,631,192 31,579,944 5,291,757 45,884,199 Redemptions (47,950,763) (415,983,291) (81,442,188) (706,874,478) -------------- ------------- --------------- -------------- Net decrease (11,905,020) (101,406,761) (4,543,366) (39,872,380)
DAILY INCOME COMPANY ------------------------------------------------------------------ YEAR ENDED YEAR ENDED AUGUST 31, 2005 AUGUST 31, 2004 (a) ------------------------------ --------------------------------- SHARES DOLLARS ($) SHARES DOLLARS ($) - -------------------------------------------------------------------------------------------------------------------------------- CLASS A Subscriptions -- -- -- -- Distributions reinvested -- -- -- -- Redemptions -- -- -- -- -------------- ------------- --------------- -------------- Net increase (decrease) -- -- -- -- CLASS B Subscriptions -- -- -- -- Distributions reinvested -- -- -- -- Redemptions -- -- -- -- -------------- ------------- --------------- -------------- Net increase (decrease) -- -- -- -- CLASS C Subscriptions -- -- -- -- Distributions reinvested -- -- -- -- Redemptions -- -- -- -- -------------- ------------- --------------- -------------- Net increase (decrease) -- -- -- -- CLASS D Subscriptions -- -- -- -- Distributions reinvested -- -- -- -- Redemptions -- -- -- -- -------------- ------------- --------------- -------------- Net decrease -- -- -- -- CLASS Z Subscriptions 332,495,968 332,495,968 522,717,108 522,717,108 Distributions reinvested 9,276,984 9,276,984 2,669,462 2,669,462 Redemptions (515,062,206) (515,062,206) (762,436,905) (762,436,905) -------------- ------------- --------------- -------------- Net decrease (173,289,254) (173,289,254) (237,050,335) (237,050,335)
(a) Class C shares were initially offered on October 13, 2003. See Accompanying Notes to Financial Statements. 136 - 137 Spread NOTES TO FINANCIAL STATEMENTS __________________________________________________ AUGUST 31, 2005 COLUMBIA FUNDS NOTE 1. ORGANIZATION The Columbia Funds are registered under the Investment Company Act of 1940 (the "1940 Act"), as amended, as open-end management investment companies. Information presented in these financial statements pertains to the following Funds (individually referred to as a "Fund", collectively referred to as the "Funds"): Columbia International Stock Fund Columbia Mid Cap Growth Fund Columbia Small Cap Growth Fund I Columbia Real Estate Equity Fund Columbia Technology Fund Columbia Strategic Investor Fund Columbia Balanced Fund Columbia Short Term Bond Fund Columbia Fixed Income Securities Fund Columbia Oregon Intermediate Municipal Bond Fund Columbia Conservative High Yield Fund Columbia Daily Income Company Effective October 10, 2005, Columbia Small Cap Growth Fund, Columbia Oregon Municipal Bond Fund and Columbia High Yield Fund were renamed Columbia Small Cap Growth Fund I, Columbia Oregon Intermediate Municipal Bond Fund and Columbia Conservative High Yield Fund, respectively. All Funds are diversified except for the Columbia Real Estate Equity Fund, Columbia Technology Fund and Columbia Oregon Intermediate Municipal Bond Fund, which are non-diversified. INVESTMENT GOALS The Columbia International Stock Fund seeks long-term capital appreciation by investing in stocks issued by companies from at least three countries outside the United States. The Columbia Mid Cap Growth Fund seeks significant capital appreciation by investing in stocks of companies with a market capitalization, at the time of initial purchase, equal to or less than the largest stock in the Russell Midcap Index. The Columbia Small Cap Growth Fund I seeks capital appreciation by investing in stocks of companies with a market capitalization, at the time of initial purchase, equal to or less than the largest stock in the S&P SmallCap 600 Index. The Columbia Real Estate Equity Fund seeks capital appreciation and above-average income by investing in stocks of companies principally engaged in the real estate industry, including real estate investment trusts (REITs). The Columbia Technology Fund seeks capital appreciation by investing in stocks of technology companies that may benefit from technological improvements, advancements or developments. The Columbia Strategic Investor Fund seeks long-term growth of capital by using a "value" approach to investing primarily in common stocks. The Columbia Balanced Fund seeks high total return by investing in common stocks and debt securities. The Columbia Short Term Bond Fund seeks a high level of current income consistent with a high degree of principal stability by investing primarily in short-term, investment-grade, fixed income securities. The Columbia Fixed Income Securities Fund seeks a high level of income by investing in a broad range of debt securities with intermediate to long-term maturities. The Columbia Oregon Intermediate Municipal Bond Fund seeks a high level of income exempt from federal and Oregon income tax by investing primarily in municipal securities issued by the state of Oregon. The Columbia Conservative High Yield Fund seeks a high level of income, with capital appreciation as a secondary goal, by investing in non-investment-grade, corporate debt securities. The Columbia Daily Income Company seeks a high level of income consistent with the maintenance of liquidity and the preservation of capital by investing primarily in high quality money market securities. FUND SHARES Each Fund may issue an unlimited number of shares. Each of the Funds, except the Columbia International Stock Fund, Columbia Mid Cap Growth Fund, Columbia Small Cap Growth Fund I, Columbia Short Term Bond Fund and Columbia Daily Income Company, offer five classes of shares: Class A, Class B, Class C, Class D and Class Z. The Columbia Small Cap Growth Fund I and Columbia Daily Income Company offer only Class Z shares. The Columbia International Stock Fund offers six classes of shares: Class A, Class B, Class C, Class D, Class G and Class Z. Class G commenced operations on March 18, 2005. The Columbia Mid Cap Growth Fund and Columbia Short Term Bond Fund offer seven classes of shares: Class A, Class B, Class C, Class D, Class G, Class T and Class Z. Each share class has its own expense structure. Class A and Class T shares are subject to a front-end sales charge based on the amount of initial investment. Class A and Class T shares purchased without an initial sales charge in accounts aggregating up to $50 million at the time of purchase are subject to a 1.00% 138 ________________________________________________________________________________ AUGUST 31, 2005 COLUMBIA FUNDS contingent deferred sales charge ("CDSC") on shares sold within twelve months of the time of purchase. Class B and Class G shares are subject to a maximum CDSC of 5.00% based upon the holding period after purchase. Class B shares generally will convert to Class A shares eight years after purchase. Class G shares will convert to Class T shares in eight years after purchase. Class C shares are subject to a 1.00% CDSC on shares sold within one year after purchase. Class D shares are subject to a front-end sales charge of 1.00% and a 1.00% CDSC on shares sold within one year after purchase. Class D shares are closed to new investors. In addition, the Class D front-end sales charge of 1.00% is waived after October 13, 2003. 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. NOTE 2. SIGNIFICANT ACCOUNTING POLICIES USE OF ESTIMATES The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of their financial statements. SECURITY VALUATION Equity securities and certain investment companies are valued at the last sale price on the principal exchange on which they trade, except for securities traded on the NASDAQ, which are valued at the NASDAQ official close price. Unlisted securities or listed securities for which there were no sales during the day are valued at the closing bid price on such exchanges or over-the-counter markets. Debt securities generally are valued by pricing services approved by the Funds' Board of Trustees, based upon market transactions for normal, institutional-size trading units of similar securities. The 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. Debt securities for which quotations are readily available are valued at an over-the-counter or exchange bid quotation. Certain debt 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 debt obligations maturing within 60 days are valued at amortized cost, which approximates market value. Investments in other open-end investment companies are valued at net asset value. Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded. Options are valued at the last reported sale price, or in the absence of a sale, the mean between the last quoted bid and ask price. Foreign securities are generally valued at the last sale price on the foreign exchange or market on which they trade. 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. Generally, trading in foreign securities is substantially completed each day at various times prior to the close of the New York Stock Exchange ("NYSE"). The values of such securities used in computing the net asset value of the Funds' shares are determined as of such times. Foreign currency exchange rates are generally determined at 2:00 p.m. Eastern (U.S.) time. Occasionally, events affecting the values of such foreign securities and such exchange rates may occur between the times at which they are determined and the close of the customary trading session of the NYSE, which would not be reflected in the computation of the Funds' net asset value. If events materially affecting the values of such foreign securities occur and it is determined that market quotations are not reliable, then these foreign securities will be valued at their fair value using procedures approved by the Board of Trustees. The Funds may use a systematic fair valuation model provided by an independent third party to value 139 ________________________________________________________________________________ AUGUST 31, 2005 COLUMBIA FUNDS securities principally traded in foreign markets in order to adjust for possible stale pricing that may occur between the close of the foreign exchanges and the time for valuation. If a security is valued at a "fair value", such value is likely to be different from the last quoted market price for the security. Investments for which market quotations are not readily available, or that have quotations which management believes are not appropriate, are valued at fair value as determined in good faith under consistently applied procedures established by and under the general supervision of the Board of Trustees. Securities in Columbia Daily Income Company are valued utilizing the amortized cost valuation method permitted in accordance with Rule 2a-7 under the 1940 Act provided certain conditions are met. This method involves valuing a portfolio security initially at its cost and thereafter assuming a constant accretion or amortization to maturity of any discount or premium, respectively. SECURITY TRANSACTIONS Security transactions are accounted for on the trade date. Cost is determined and gains (losses) are based upon the specific identification method for both financial statement and federal income tax purposes. FUTURES CONTRACTS Certain Funds may invest in municipal and U.S. Treasury futures contracts. The Funds will invest in these instruments to hedge against the effects of changes in the value of portfolio securities due to anticipated changes in interest rates and/or market conditions, for duration management, or when the transactions are economically appropriate to the reduction of risk inherent in the management of the Funds and not for trading purposes. The use of futures contracts involves certain risks, which include: (1) imperfect correlation between the price movement of the instruments and the underlying securities, (2) inability to close out positions due to differing trading hours, or the temporary absence of a liquid market, for either the instrument or the underlying securities, or (3) an inaccurate prediction by Columbia Management Advisors, Inc. of the future direction of interest rates. Any of these risks may involve amounts exceeding the variation margin recorded in the Funds' Statement of Assets and Liabilities at any given time. Upon entering into a futures contract, each Fund deposits cash or securities with the broker in an amount sufficient to meet the initial margin requirement. Subsequent payments are made or received by the Funds equal to the daily change in the contract value and are recorded as variation margin receivable or payable and offset in unrealized gains or losses. Each Fund also identifies portfolio securities as segregated with the custodian in a separate account in an amount equal to the futures contract. The Funds recognize a realized gain or loss when the contract is closed or expires. OPTIONS Certain Funds may write call and put options on futures they own or in which they may invest. Writing put options tends to increase a Fund's exposure to the underlying instrument. Writing call options tends to decrease a Fund's exposure to the underlying instrument. When the Funds write a call or put option, an amount equal to the premium received is recorded as a liability and subsequently marked-to-market to reflect the current value of the option written. Premiums received from writing options which expire are treated as realized gains. Premiums received from writing options which are exercised or closed are added to the proceeds or offset against the amounts paid on the underlying future transaction to determine the realized gain or loss. Each Fund as a writer of an option has no control over whether the underlying future may be sold (call) or purchased (put) and as a result bears the market risk of an unfavorable change in the price of the future underlying the written option. There is the risk the Funds may not be able to enter into a closing transaction because of an illiquid market. The Funds' custodian will set aside cash or liquid portfolio securities equal to the amount of the written options contract commitment in a separate account. Certain Funds may also write call options on securities they own. Writing call options tends to decrease a Fund's exposure to the underlying security. When a Fund writes a call option, an amount equal to the premium received is recorded as a liability. Premiums received from writing call options which expire are treated as realized gains. Certain Funds may also purchase put and call options. Purchasing call options tends to increase the Funds' exposure to the underlying instrument. Purchasing put options tends to decrease the Funds' exposure to the underlying instrument. Each Fund pays a premium, which is included in the Funds' Statement of Assets and Liabilities as an investment and subsequently 140 ________________________________________________________________________________ AUGUST 31, 2005 COLUMBIA FUNDS marked-to-market to reflect the current value of the option. The risk associated with purchasing put and call options is limited to the premium paid. Premiums paid for purchasing options which expire are treated as realized losses. Premiums paid for purchasing options which are exercised or closed are added to the amounts paid or offset against the proceeds on the underlying future transaction to determine the realized gain or loss. FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS Forward foreign currency exchange contracts are agreements to exchange one currency for another at a future date at a specified price. These contracts are used to minimize the exposure to foreign exchange rate fluctuations during the period between trade and settlement date of the contracts. Certain Funds may utilize forward foreign currency exchange contracts in connection with the settlement of purchases and sales of securities. Certain Funds may also enter into these contracts to hedge certain other foreign currency denominated assets. Contracts to buy generally are used to acquire exposure to foreign currencies, while contracts to sell are used to hedge the Funds' investments against currency fluctuations. Forward currency contracts are valued daily at the current exchange rate of the underlying currency, resulting in unrealized gains (losses) which become realized at the time the foreign currency contracts are closed or mature. Realized and unrealized gains (losses) arising from such transactions are included in net realized and unrealized gains (losses) on foreign currency transactions. The use of forward currency contracts does not eliminate fluctuations in the prices of the Funds' portfolio securities. While the maximum potential loss from such contracts is the aggregate face value in U.S. dollars at the time the contract was opened, exposure is typically limited to the change in value of the contract (in U.S. dollars) over the period it remains open. The Funds could also be exposed to risk if the counterparties of the contracts are unable to fulfill the terms of the contracts. TREASURY INFLATION PROTECTED SECURITIES The Fund may invest in Treasury Inflation Protected Securities ("TIPS"). The principal amount of TIPS is adjusted periodically for inflation based on a monthly published index. Interest payments are based on the inflation-adjusted principal at the time the interest is paid. REPURCHASE AGREEMENTS Each Fund may engage in repurchase agreement transactions with institutions that the Funds' investment advisor has determined are creditworthy. Each Fund, through its custodian, receives delivery of underlying securities collateralizing a repurchase agreement. Collateral is at least equal, at all times, to the value of the repurchase obligation including interest. A repurchase agreement transaction involves certain risks in the event of default or insolvency of the counterparty. These risks include possible delays or restrictions upon each Fund's ability to dispose of the underlying securities and a possible decline in the value of the underlying securities during the period while the Funds seek to assert their rights. MORTGAGE DOLLAR ROLL TRANSACTIONS Certain Funds may enter into mortgage dollar roll transactions. A mortgage dollar roll transaction involves a sale by a Fund of investments from its portfolio with an agreement by the Fund to repurchase similar, but not identical, securities at an agreed upon price and date. During the period between the sale and repurchase, the Fund will not be entitled to accrue interest and receive principal payment on the securities sold. Mortgage dollar roll transactions involve the risk that the market value of the securities sold by the Fund may decline below the repurchase price of those securities. In the event the buyer of the securities under a mortgage dollar roll transaction files for bankruptcy or becomes insolvent, the Fund's use of proceeds of the transaction may be restricted pending a determination by or with respect to the other party. The Funds identify U.S. Government securities or other liquid high grade debt obligations in an amount equal to the mortgage dollar roll transactions. DELAYED DELIVERY SECURITIES The Funds may trade securities on other than normal settlement terms, including securities purchased or sold on a "when-issued" basis. This may increase the risk if the other party to the transaction fails to deliver and causes the Funds to subsequently invest at less advantageous prices. The Funds identify cash or liquid portfolio securities as segregated with the custodian in an amount equal to the delayed delivery commitment. INCOME RECOGNITION Interest income is recorded on the accrual basis. Premium and discount are amortized and accreted, 141 ________________________________________________________________________________ AUGUST 31, 2005 COLUMBIA FUNDS respectively, on all debt securities. Original issue discount is accreted to interest income over the life of the security with a corresponding increase in the cost basis. Corporate actions and dividend income are recorded on the ex-date, except for certain foreign securities which are recorded as soon after ex-date as the Funds become aware of such, net of non-reclaimable tax withholdings. Awards from class action litigation are recorded as a reduction of cost if the Funds still own the applicable securities on the payment date. If the Funds no longer own the applicable securities, the proceeds are recorded as realized gains. The Funds estimate components of distributions from real estate investment trusts (REITs). Distributions received in excess of income are recorded as a reduction of the cost of the related investments. If the Funds no longer own the applicable securities, any distributions received in excess of income are recorded as realized gains. FOREIGN CURRENCY TRANSACTIONS The values of all assets and liabilities quoted in foreign currencies are translated into U.S. dollars at that day's exchange rates. Net realized and unrealized gains (losses) on foreign currency transactions include gains (losses) arising from the fluctuation in exchange rates between trade and settlement dates on securities transactions, gains (losses) arising from the disposition of foreign currency and currency gains (losses) between the accrual and payment dates on dividends, interest income and foreign withholding taxes. For financial statement purposes, the Funds do not distinguish that portion of gains (losses) on investments which is due to changes in foreign exchange rates from that which is due to changes in market prices of the investments. Such fluctuations are included with the net realized and unrealized gains (losses) on investments. DETERMINATION OF CLASS NET ASSET VALUES All income, expenses (other than class-specific expenses, as shown on the Statements of Operations) and realized and unrealized gains (losses) are allocated to each class of the Funds on a daily basis for purposes of determining the net asset value of each class. Income and expenses are allocated to each class based on the settled shares method, while realized and unrealized gains (losses) are allocated based on the relative net assets of each class for the Columbia Short Term Bond Fund, Columbia Fixed Income Securities Fund, Columbia Oregon Intermediate Municipal Bond Fund and Columbia Conservative High Yield Fund. For all other Funds', income, expenses (other than class-specific expenses, as shown on the Statements of Operations), and realized and unrealized gains (losses) are allocated based on the relative net assets of each class of that Fund. FEDERAL INCOME TAX STATUS Each Fund intends to qualify each year as a "regulated investment company" under Subchapter M of the Internal Revenue Code, as amended, and will distribute substantially all of its taxable or tax-exempt income, if any, for its tax year, and as such will not be subject to federal income taxes. In addition, each Fund intends to distribute in each calendar year substantially all of its net investment income, capital gains and certain other amounts, if any, such that each Fund should not be subject to federal excise tax. Therefore, no federal income or excise tax provision is recorded. 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 15%. The Funds accrue for such foreign taxes on net realized and unrealized gains at the appropriate rate for each jurisdiction. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS Dividends from net investment income of the Columbia International Stock Fund, Columbia Mid Cap Growth Fund, Columbia Small Cap Growth Fund I, Columbia Technology Fund and Columbia Strategic Investor Fund are declared and paid annually. 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 Short Term Bond Fund, Columbia Fixed Income Securities Fund, Columbia Oregon Intermediate Municipal Bond Fund and Columbia Conservative 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. Net realized capital gains, if any, are distributed at least 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 Trustees in accordance with federal income tax regulations. 142 ________________________________________________________________________________ AUGUST 31, 2005 COLUMBIA FUNDS NOTE 3. FEDERAL TAX INFORMATION The timing and character of income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Funds' capital accounts for permanent tax differences to reflect income and gains available for distribution (or available capital loss carryforwards) under income tax regulations. For the year ended August 31, 2005, permanent book and tax basis differences resulting primarily from differing treatments for net operating loss reclassifications, foreign capital gains tax, foreign currency transactions, discount accretion/premium amortization on debt securities, distribution reclassifications, non-deductible merger fees, paydown reclassifications, REIT adjustments, passive foreign investment company adjustments, redemption based payments treated as dividend paid deduction and expired capital loss carryforwards were identified and reclassified among the components of the Funds' net assets as follows:
UNDISTRIBUTED (OVERDISTRIBUTED) ACCUMULATED ACCUMULATED NET INVESTMENT NET REALIZED PAID-IN INCOME (LOSS) GAIN (LOSS) CAPITAL -------------------------------------------------- Columbia International Stock Fund ............................ $ (1,829,346) $(166,715,428) $ 168,544,774 Columbia Mid Cap Growth Fund ................................. 4,692,767 460,304 (5,153,071) Columbia Small Cap Growth Fund I ............................. 2,978,014 -- (2,978,014) Columbia Real Estate Equity Fund ............................. 1,355,846 (16,796,275) 15,440,429 Columbia Technology Fund ..................................... 640,721 (640,722) 1 Columbia Strategic Investor Fund ............................. (136,767) 9,209 127,558 Columbia Balanced Fund ....................................... 370,863 (370,863) -- Columbia Short Term Bond Fund ................................ 40,724 2,715 (43,439) Columbia Fixed Income Securities Fund ........................ 1,122,356 (1,399,835) 277,479 Columbia Oregon Intermediate Municipal Bond Fund ............. (85,689) (87,395) 173,084 Columbia Conservative High Yield Fund ........................ 8,487,041 (8,487,041) --
Net investment income and net realized gains (losses), as disclosed on the Statements of Operations, and net assets were not affected by these reclassifications. The tax character of distributions paid during the years ended August 31, 2005 and August 31, 2004 was as follows:
YEAR ENDED AUGUST 31, 2005 TAX-EXEMPT ORDINARY LONG-TERM INCOME INCOME* CAPITAL GAINS TOTAL ---------------------------------------------------------------- Columbia International Stock Fund .............. $ -- $ 3,047,263 $ -- $ 3,047,263 Columbia Real Estate Equity Fund ............... -- 34,548,337 81,680,946 116,229,283 Columbia Strategic Investor Fund ............... -- 1,232,551 5,190,447 6,422,998 Columbia Balanced Fund ......................... -- 9,084,173 -- 9,084,173 Columbia Short Term Bond Fund .................. -- 14,268,236 -- 14,268,236 Columbia Fixed Income Securities Fund .......... -- 12,162,259 3,251,776 15,414,035 Columbia Oregon Intermediate Municipal Bond Fund ................................... 16,838,804 226,449 952,497 18,017,750 Columbia Conservative High Yield Fund........... -- 103,244,359 -- 103,244,359 Columbia Daily Income Fund ..................... -- 9,837,179 -- 9,837,179
* For tax purposes short-term capital gains distributions, if any, are considered ordinary income distributions. 143 ________________________________________________________________________________ AUGUST 31, 2005 COLUMBIA FUNDS
YEAR ENDED AUGUST 31, 2004 TAX-EXEMPT ORDINARY LONG-TERM INCOME INCOME* CAPITAL GAINS TOTAL ---------------------------------------------------------------- Columbia International Stock Fund .............. $ -- $ 1,290,808 $ -- $ 1,290,808 Columbia Real Estate Equity Fund ............... -- 32,144,710 7,814,165 39,958,875 Columbia Strategic Investor Fund ............... -- 1,745,832 -- 1,745,832 Columbia Balanced Fund ......................... -- 10,897,644 -- 10,897,644 Columbia Short Term Bond Fund .................. -- 11,567,348 -- 11,567,348 Columbia Fixed Income Securities Fund .......... -- 17,387,062 -- 17,387,062 Columbia Oregon Intermediate Municipal Bond Fund ................................... 18,792,984 95,636 5,369,297 24,257,917 Columbia Conservative High Yield Fund .......... -- 110,686,435 -- 110,686,435 Columbia Daily Income Fund ..................... -- 2,925,450 -- 2,925,450
* For tax purposes short-term capital gains distributions, if any, are considered ordinary income distributions. As of August 31, 2005, the components of distributable earnings on a tax basis were as follows:
UNDISTRIBUTED UNDISTRIBUTED UNDISTRIBUTED NET UNREALIZED TAX-EXEMPT ORDINARY LONG-TERM APPRECIATION INCOME INCOME CAPITAL GAINS (DEPRECIATION)* ---------------------------------------------------------------- Columbia International Stock Fund .............. $ -- $ 11,597,552 $ 13,876,238 $ 156,886,822 Columbia Mid Cap Growth Fund ................... -- -- 9,566,493 141,062,476 Columbia Small Cap Growth Fund I ............... -- -- 2,509,028 36,846,746 Columbia Real Estate Equity Fund ............... -- -- 76,354,375 351,353,374 Columbia Technology Fund ....................... -- 1,171,789 2,018,570 10,131,000 Columbia Strategic Investor Fund ............... -- 11,020,234 19,990,981 92,020,134 Columbia Balanced Fund ......................... -- 1,176,963 -- 18,739,118 Columbia Short Term Bond Fund .................. -- 1,070,606 -- (1,929,817) Columbia Fixed Income Securities Fund .......... -- 782,382 595,999 2,873,816 Columbia Oregon Intermediate Municipal Bond Fund ................................... 287,988 -- -- 22,850,817 Columbia Conservative High Yield Fund .......... -- 3,789,261 -- 8,532,733 Columbia Daily Income Fund ..................... -- 33,696 -- --
* The differences between book-basis and tax-basis net unrealized appreciation (depreciation) are primarily due to deferral of losses from wash sales and discount accretion/premium amortization on debt securities. Unrealized appreciation and depreciation at August 31, 2005, based on cost of investments for federal income tax purposes, and excluding any unrealized appreciation and depreciation from changes in the value of other assets and liabilities resulting from changes in exchange rates, was:
NET UNREALIZED UNREALIZED UNREALIZED APPRECIATION APPRECIATION DEPRECIATION (DEPRECIATION) ------------------------------------------------ Columbia International Stock Fund ............................ $165,117,421 $ (8,230,599) $ 156,886,822 Columbia Mid Cap Growth Fund ................................. 157,285,245 (16,222,769) 141,062,476 Columbia Small Cap Growth Fund I ............................. 44,038,801 (7,192,055) 36,846,746 Columbia Real Estate Equity Fund ............................. 358,177,571 (6,824,197) 351,353,374 Columbia Technology Fund ..................................... 10,749,451 (618,451) 10,131,000 Columbia Strategic Investor Fund ............................. 94,898,370 (2,878,236) 92,020,134 Columbia Balanced Fund ....................................... 25,157,765 (6,418,647) 18,739,118 Columbia Short Term Bond Fund ................................ 1,151,378 (3,081,195) (1,929,817) Columbia Fixed Income Securities Fund ........................ 4,633,177 (1,759,361) 2,873,816 Columbia Oregon Intermediate Municipal Bond Fund ............. 22,989,403 (138,586) 22,850,817 Columbia Conservative High Yield Fund ........................ 23,670,651 (15,137,918) 8,532,733
144 ________________________________________________________________________________ AUGUST 31, 2005 COLUMBIA FUNDS The following capital loss carryforwards, determined as of August 31, 2005, may be 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 2006 2007 2008 2009 2010 2011 2013 TOTAL --------- ----------- ----------- ------------ ------------ ----------- ----------- ------------ Columbia International Stock Fund ........ $ -- $ 2,960,252 $ 3,458,899 $123,580,370 $ 20,382,060 $ -- $ -- $150,381,581 Columbia Mid Cap Growth Fund ....... -- -- 5,414,380 13,422,695 -- -- -- 18,837,075 Columbia Balanced Fund .............. -- -- -- -- 19,909,041 10,165,186 -- 30,074,227 Columbia Short Term Bond Fund ......... 256,035 -- 1,103,186 -- -- -- 405,770 1,764,991 Columbia Oregon Intermediate Municipal Bond Fund ......... -- -- -- -- -- -- 751,457 751,457 Columbia Conservative High Yield Fund .............. -- -- -- -- 9,535,110 -- -- 9,535,110 Columbia Daily Income Company ........... -- -- -- -- -- 320 385 705
Of the capital loss carryforwards attributable to Columbia International Stock Fund, $4,440,378 ($2,960,252 expiring August 31, 2007 and $1,480,126 expiring August 31, 2008), $2,638,364 ($1,978,773 expiring August 31, 2008 and $659,591 expiring August 31, 2009) and $143,302,839 ($122,920,779 expiring August 31, 2009 and $20,382,060 expiring August 31, 2010) remain from the Columbia International Stock Fund's merger with Liberty Newport International Equity Fund, Stein Roe International Fund and Columbia International Equity Fund, respectively. Total capital loss carryforwards acquired in the current year from the Columbia International Equity Fund were $252,270,656, of which $83,010,689 were permanently lost and $25,957,128 were utilized to offset current year gains. The availability of a portion of the remaining capital loss carryforwards from the Columbia International Equity Fund may be limited in a given year. Of the capital loss carryforwards attributable to Columbia Mid Cap Growth Fund, $5,507,368 ($4,130,526 expiring August 31, 2008 and $1,376,842 expiring August 31, 2009) and $13,329,707 ($1,283,854 expiring August 31, 2008 and $12,045,853 expiring August 31, 2009) remain from the Columbia Mid Cap Growth Fund's merger with Liberty Mid Cap Growth Fund and Stein Roe Capital Opportunities Fund, respectively. Of the capital loss carryforwards attributable to Columbia Short Term Bond Fund, $1,359,221 ($256,035 expiring August 31, 2006 and $1,103,186 expiring August 31, 2008) remain from the Columbia Short Term Bond Fund's merger with Galaxy Short Term Bond Fund. The following capital loss carryforwards were utilized or lost during the year ended August 31, 2005: Columbia International Stock Fund ...... $131,879,054 Columbia Mid Cap Growth Fund ........... 110,264,080 Columbia Small Cap Growth Fund I ....... 97,865,374 Columbia Technology Fund ............... 1,968,835 Columbia Balanced Fund ................. 36,095,807 Columbia Conservative High Yield Fund .................... 6,755,468 Under current tax rules, certain currency and capital losses realized after October 31 may be deferred and treated as occurring on the first day of the following fiscal year. As of August 31, 2005, post-October currency losses and capital losses attributed to security transactions were deferred to September 1, 2005, as follows: CURRENCY CAPITAL LOSSES LOSSES -------- ----------- Columbia Mid Cap Growth Fund .............. $ 99 $ -- Columbia Technology Fund ..... 5,295 -- Columbia Short Term Bond Fund ................ -- 1,087,731 145 ________________________________________________________________________________ AUGUST 31, 2005 COLUMBIA FUNDS NOTE 4. FEES AND COMPENSATION PAID TO AFFILIATES INVESTMENT ADVISORY FEE Columbia Management Advisors, Inc. ("Columbia"), an indirect wholly owned subsidiary of Bank of America Corporation ("BOA"), is the investment advisor to the Funds and provides administrative and other services. On September 30, 2005, Columbia Management Advisors, Inc. changed its name to Columbia Management Advisors, LLC. Columbia receives a monthly investment advisory fee based on the each Fund's average daily net assets at the following annual rates:
$200 MILLION $500 MILLION $1 BILLION $1.5 BILLION $3 BILLION FIRST TO TO TO TO TO OVER $200 MILLION $500 MILLION $1 BILLION $1.5 BILLION $3 BILLION $6 BILLION $6 BILLION ------------ ------------ ------------ ------------ ------------ ---------- ---------- Columbia International Stock Fund 0.87% 0.87% 0.82% 0.77% 0.72% 0.70% 0.68% Columbia Mid Cap Growth Fund 0.82% 0.82% 0.75% 0.72% 0.67% 0.67% 0.67% Columbia Small Cap Growth Fund I 0.87% 0.87% 0.82% 0.77% 0.77% 0.77% 0.77% Columbia Real Estate Equity Fund 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% Columbia Technology Fund 0.87% 0.87% 0.82% 0.77% 0.77% 0.77% 0.77% Columbia Strategic Investor Fund 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% Columbia Balanced Fund 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% Columbia Short Term Bond Fund 0.45% 0.45% 0.40% 0.40% 0.40% 0.40% 0.40% Columbia Fixed Income Securities Fund 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% Columbia Oregon Intermediate Municipal Bond Fund 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% Columbia Conservative High Yield Fund 0.60% 0.60% 0.55% 0.52% 0.49% 0.49% 0.49% Columbia Daily Income Company 0.50% 0.50% 0.45% 0.40% 0.40% 0.40% 0.40%
Prior to November 1, 2004, Columbia received a monthly investment advisory fee based on each Fund's average daily net assets at the following annual rates: ANNUAL FEE RATE -------- Columbia Small Cap Growth Fund I 1.00% Columbia Real Estate Equity Fund 0.75% Columbia Technology Fund 1.00% Columbia Strategic Investor Fund 0.75% Columbia Balanced Fund 0.50% Columbia Short Term Bond Fund 0.50% Columbia Fixed Income Securities Fund 0.50% Columbia Oregon Intermediate Municipal Bond Fund 0.50% Columbia Conservative High Yield Fund 0.60% FIRST $200 MILLION $500 MILLION $200 TO TO OVER MILLION $500 MILLION $1 BILLION $1 BILLION -------- ------------ ------------ ----------- Columbia International Stock Fund 1.00% 1.00% 0.95% 0.90% Columbia Mid Cap Growth Fund 1.00% 1.00% 0.75% 0.75% Columbia Daily Income Company 0.50% 0.50% 0.45% 0.40% Columbia had voluntarily agreed to waive a portion of its investment advisory fee for the Columbia International Stock Fund at the annual rate of 0.10% of the Fund's average daily net assets for the period September 1, 2004 through October 31, 2004. The annualized effective rate of this waiver is 0.01%. 146 ________________________________________________________________________________ AUGUST 31, 2005 COLUMBIA FUNDS For the year ended August 31, 2005, the effective investment advisory fee rates for the Funds were as follows: EFFECTIVE FEE RATE --------- Columbia International Stock Fund 0.85% Columbia Mid Cap Growth Fund 0.81% Columbia Small Cap Growth Fund I 0.91% Columbia Real Estate Equity Fund 0.75% Columbia Technology Fund 0.89% Columbia Strategic Investor Fund 0.75% Columbia Balanced Fund 0.50% Columbia Short Term Bond Fund 0.46% Columbia Fixed Income Securities Fund 0.50% Columbia Oregon Intermediate Municipal Bond Fund 0.50% Columbia Conservative High Yield Fund 0.56% Columbia Daily Income Company 0.49% 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 those functions to State Street Corporation ("State Street"). As a result, Columbia pays the total fees collected to State Street under the Outsourcing Agreement. Under its pricing, bookkeeping and fund administration agreement with the Funds, Columbia receives from each Fund an annual financial accounting fee of $25,000, an annual financial reporting fee of $19,965 and a monthly financial accounting fee at the annual rate of 0.02% of the average daily net assets of each Fund. The combined financial accounting and financial reporting fee for a Fund in any year will not exceed $150,000. The Funds also pay additional fees for pricing services based on the number of securities held by each Fund. For the year ended August 31, 2005, the effective pricing and bookkeeping fee rates for the Funds, inclusive of out-of-pocket expenses, were as follows: Columbia International Stock Fund 0.021% Columbia Mid Cap Growth Fund 0.019% Columbia Small Cap Growth Fund I 0.038% Columbia Real Estate Equity Fund 0.018% Columbia Technology Fund 0.136% Columbia Strategic Investor Fund 0.035% Columbia Balanced Fund 0.040% Columbia Short Term Bond Fund 0.035% Columbia Fixed Income Securities Fund 0.047% Columbia Oregon Intermediate Municipal Bond Fund 0.040% Columbia Conservative High Yield Fund 0.011% Columbia Daily Income Company 0.028% TRANSFER AGENT FEE Columbia Management Services, Inc. (the "Transfer Agent"), formerly Columbia Funds Services, Inc., an affiliate of Columbia, provides shareholder services to the Funds and has contracted with Boston Financial Data Services ("BFDS") to serve as sub-transfer agent. For such services, the Transfer Agent receives a fee per open account, in addition to reimbursement for certain out-of-pocket expenses. The Funds' annual charges per open account for the transfer agent fees and effective transfer agent fee rates, inclusive of out of pocket expenses, for the year ended August 31, 2005 are as follows: PER OPEN ACCOUNT ANNUALIZED FEE RATE FEE RATE -------- ---------- Columbia International Stock Fund $28.00 0.11% Columbia Mid Cap Growth Fund $28.00 0.15% Columbia Small Cap Growth Fund I $28.00 0.14% Columbia Real Estate Equity Fund $28.00 0.12% Columbia Technology Fund $28.00 0.33% Columbia Strategic Investor Fund $28.00 0.16% Columbia Balanced Fund $28.00 0.16% Columbia Short Term Bond Fund $34.00 0.08% Columbia Fixed Income Securities Fund $34.00 0.18% Columbia Oregon Intermediate Municipal Bond Fund $34.00 0.06% Columbia Conservative High Yield Fund $34.00 0.09% Columbia Daily Income Company $33.50 0.21% Columbia has voluntarily agreed to waive a portion of the transfer agent fees for the Columbia International Stock Fund, Columbia Mid Cap Growth Fund and Columbia Strategic Investor Fund. For the year ended August 31, 2005, the effective fee rates after fee waivers for the Columbia International Stock Fund, Columbia Mid Cap Growth Fund and Columbia Strategic Investor Fund were 0.03%, 0.10% and 0.13%, respectively. 147 ________________________________________________________________________________ AUGUST 31, 2005 COLUMBIA FUNDS UNDERWRITING DISCOUNTS, SERVICE AND DISTRIBUTION FEES Columbia Management Distributors, Inc. (the "Distributor"), formerly Columbia Funds Distributor, Inc., an affiliate of Columbia, is the principal underwriter of the Funds. For the year ended August 31, 2005, the Distributor has retained net underwriting discounts and net CDSC fees as follows:
FRONT-END SALES CHARGE CDSC ------------------- --------------------------------------------------------------- CLASS A CLASS T CLASS A CLASS B CLASS C CLASS D CLASS G CLASS T -------- -------- -------- -------- -------- -------- -------- -------- Columbia International Stock Fund ........... $ 6,287 $ -- $ 3 $ 24,029 $ 773 $ 61 $ -- $ -- Columbia Mid Cap Growth Fund .......... 8,640 185 -- 12,755 774 14 1,030 -- Columbia Real Estate Equity Fund .......... 27,593 -- 1,889 41,433 1,002 353 -- -- Columbia Technology Fund . 9,699 -- -- 22,029 1,437 -- -- -- Columbia Strategic Investor Fund ........ 157,605 -- 3,199 93,114 3,229 -- -- -- Columbia Balanced Fund ... 3,854 -- -- 21,461 157 -- -- -- Columbia Short Term Bond Fund ............ 3,230 -- 6,034 113,820 2,139 -- 6,392 -- Columbia Fixed Income Securities Fund ...... 1,523 -- -- 12,579 376 158 -- -- Columbia Oregon Intermediate Municipal Bond Fund ............ 2,219 -- -- 1,561 222 -- -- -- Columbia Conservative High Yield Fund ...... 32,709 -- 23,132 325,296 5,183 1,389 -- --
148 ________________________________________________________________________________ AUGUST 31, 2005 COLUMBIA FUNDS The Funds have adopted a 12b-1 plan (the "Plan") which allows the payment of a monthly service and distribution fee to the Distributor based on the average daily net assets of each Fund at the following annual rates:
DISTRIBUTION FEE -------------------------------------------------------------------- CLASS A(a) CLASS B CLASS C CLASS D CLASS G ---------- --------- --------- --------- --------- Columbia International Stock Fund ................ -- 0.75% 0.75% 0.75% -- Columbia Mid Cap Growth Fund ..................... 0.10% 0.75% 0.75% 0.75% 0.65%(b) Columbia Real Estate Equity Fund ................. 0.10% 0.75% 0.75% 0.75% -- Columbia Technology Fund ......................... 0.10% 0.75% 0.75% 0.75% -- Columbia Strategic Investor Fund ................. -- 0.75% 0.75% 0.75% -- Columbia Balanced Fund ........................... 0.10% 0.75% 0.75% 0.75% -- Columbia Short Term Bond Fund .................... 0.10% 0.75% 0.75% 0.75% 0.65%(c) Columbia Fixed Income Securities Fund ............ 0.10% 0.75% 0.75% 0.75% -- Columbia Oregon Intermediate Municipal Bond Fund .......................... 0.10% 0.75% 0.75% 0.75% -- Columbia Conservative High Yield Fund ............ 0.10% 0.75% 0.75% 0.75% --
SERVICE FEE -------------------------------------------------------------------- CLASS A(a) CLASS B CLASS C CLASS D CLASS G ---------- --------- --------- --------- --------- Columbia International Stock Fund ................ 0.25% 0.25% 0.25% 0.25% -- Columbia Mid Cap Growth Fund ..................... 0.25% 0.25% 0.25% 0.25% 0.50%(b) Columbia Real Estate Equity Fund ................. 0.25% 0.25% 0.25% 0.25% -- Columbia Technology Fund ......................... 0.25% 0.25% 0.25% 0.25% -- Columbia Strategic Investor Fund ................. 0.25% 0.25% 0.25% 0.25% -- Columbia Balanced Fund ........................... 0.25% 0.25% 0.25% 0.25% -- Columbia Short Term Bond Fund .................... 0.25% 0.25% 0.25% 0.25% 0.50%(c) Columbia Fixed Income Securities Fund ............ 0.25% 0.25% 0.25% 0.25% -- Columbia Oregon Intermediate Municipal Bond Fund .......................... 0.25% 0.25% 0.25% 0.25% -- Columbia Conservative High Yield Fund ............ 0.25% 0.25% 0.25% 0.25% --
(a) The Funds' Board of Trustees currently limits combined 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 the combined fee does not exceed 0.95% annually of the Class G shares average daily net assets. Of the 0.50% service fee, 0.25% relates to shareholder liaison fees and 0.25% relates to administration support fees. (c) The Distributor has contractually agreed to limit a portion of the Class G distribution and service fees so that the combined fee does not exceed 0.80% annually of the Class G shares average daily net assets. Of the 0.50% service fee, 0.25% relates to shareholder liaison fees and 0.25% relates to administration support fees. 149 ________________________________________________________________________________ AUGUST 31, 2005 COLUMBIA FUNDS The Distributor has voluntarily agreed to waive a portion of the Class C and Class D distribution and service fees so that combined these fees do not exceed the annual rates on the average daily net assets of Class C and Class D shares of each Fund as follows: Columbia Short Term Bond Fund ....................... 0.40% Columbia Fixed Income Securities Fund ............... 0.85% Columbia Oregon Intermediate Municipal Bond Fund ......................................... 0.65% Columbia Conservative 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 FEES The Columbia Mid Cap Growth 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 advisors. The annual service fee may equal up to 0.50% annually for Class T shares, but will not exceed each Fund's net investment income attributable to Class T shares. The Columbia Mid Cap Growth Fund and Columbia Short Term Bond Fund do not intend to pay more than 0.30% and 0.15%, respectively, for annual Class T shareholder services fees. EXPENSE LIMITS AND FEE REIMBURSEMENTS Columbia has voluntarily agreed to waive fees and reimburse the Funds for certain expenses so that total expenses (exclusive of service fees, distribution fees, brokerage commissions, interest, taxes and extraordinary expenses, if any) will not exceed certain expense limitations. These arrangements may be revised or discontinued at any time. Total expenses are limited to the following annual percentages based on each Fund's average daily net assets: Columbia Technology Fund ............................ 1.65% Columbia Short Term Bond Fund ....................... 0.66% CUSTODY CREDITS Each Fund has an agreement with its custodian bank under which custody fees may be reduced by balance credits. These credits are recorded as a reduction of total expenses on the Statements of Operations. 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. FEES PAID TO OFFICERS AND DIRECTORS With the exception of one officer, all officers of the Funds are employees of Columbia or its affiliates and receive no compensation from the Funds. The Board of Trustees appointed a Chief Compliance Officer to the Funds in accordance with federal securities regulations. Each Fund, along with other affiliated funds, pays its pro-rata share of the expenses associated with the Chief Compliance Officer position. Each Fund's fee will not exceed $15,000 per year. The Funds' Trustees may participate in a deferred compensation plan which may be terminated at any time. Obligations of the plan will be paid solely out of the Funds' assets. OTHER Columbia provides certain services to the Funds related to Sarbanes-Oxley compliance. This amount is included in "Other expenses" on the Statements of Operations. For the year ended August 31, 2005, the Funds paid fees to Columbia for such services as follows: Columbia International Stock Fund ................... $ 2,189 Columbia Mid Cap Growth Fund ........................ 2,392 Columbia Small Cap Growth Fund I .................... 1,815 Columbia Real Estate Equity Fund .................... 2,495 Columbia Technology Fund ............................ 1,547 Columbia Strategic Investor Fund .................... 1,987 Columbia Balanced Fund .............................. 1,934 Columbia Short Term Bond Fund ....................... 2,015 Columbia Fixed Income Securities Fund ............... 1,804 Columbia Oregon Intermediate Municipal Bond Fund ......................................... 1,928 Columbia Conservative High Yield Fund ............... 3,286 Columbia Daily Income Company ....................... 2,073 150 ________________________________________________________________________________ AUGUST 31, 2005 COLUMBIA FUNDS NOTE 5. PORTFOLIO INFORMATION For the year ended August 31, 2005, the cost of purchases and proceeds from sales of securities, excluding short-term obligations, were as follows:
U.S. GOVERNMENT OTHER INVESTMENT SECURITIES SECURITIES -------------------------- ----------------------------- PURCHASES SALES PURCHASES SALES ----------- ----------- ------------ ------------- Columbia International Stock Fund ...................... $ -- $ -- $544,021,492 $ 662,939,219 Columbia Mid Cap Growth Fund ........................... -- -- 865,585,333 1,111,514,415 Columbia Small Cap Growth Fund I ....................... -- -- 344,772,635 767,646,324 Columbia Real Estate Equity Fund ....................... -- -- 86,826,964 324,210,412 Columbia Technology Fund ............................... -- -- 158,101,615 146,213,645 Columbia Strategic Investor Fund ....................... -- -- 287,731,763 285,906,389 Columbia Balanced Fund ................................. 56,941,019 73,535,650 183,762,417 375,580,282 Columbia Short Term Bond Fund .......................... 128,855,359 98,049,667 82,290,258 162,038,807 Columbia Fixed Income Securities Fund .................. 112,330,513 134,271,885 18,745,497 83,421,533 Columbia Oregon Intermediate Municipal Bond Fund ....... -- -- 36,800,216 56,210,795 Columbia Conservative High Yield Fund .................. -- -- 623,950,675 698,261,365
For the year ended August 31, 2005, Columbia Technology Fund had transactions in written options as follows: NUMBER OF PREMIUM CONTRACTS RECEIVED --------- ---------- Options Outstanding at August 31, 2004 -- $ -- Options Written - Call 850 149,445 Options Closed (610) (108,367) Options Exercised (200) (37,398) --------- ---------- Options Outstanding at August 31, 2005 40 $ 3,680 --------- ---------- NOTE 6. OTHER RELATED PARTY TRANSACTIONS During the year ended August 31, 2005, the Columbia Technology Fund used Bank of America Securities, a wholly owned subsidiary of BOA, as a broker. Total commissions paid to Bank of America Securities during the period were $125. NOTE 7. REDEMPTION FEES The Columbia International Stock Fund imposes a 2.00% redemption fee to shareholders of Class Z shares who redeem shares held for 60 days or less. Effective January 3, 2005, the Columbia International Stock Fund also began imposing a 2.00% redemption fee to shareholders of Class A, Class B, Class C, Class D and Class G shares who redeem shares held for 60 days or less. Class G shares were initially offered on March 18, 2005. Redemption fees, which are retained by the Fund, are accounted for as an addition to paid-in capital and are allocated to each class proportionately for purposes of determining the net asset value of each class. For the year ended August 31, 2005, the redemption fees for the Class A, Class B, Class C, Class D, Class G and Class Z shares of the Columbia International Stock Fund amounted to $2,756, $954, $63, $67, $47 and $57,287, respectively. 151 ________________________________________________________________________________ AUGUST 31, 2005 COLUMBIA FUNDS NOTE 8. OTHER During the year ended August 31, 2005, the Columbia Small Cap Growth Fund I experienced a loss of $2,548 due to a violation of borrowing limitations. The Fund is in the process of being reimbursed by Columbia. During the year ended August 31, 2005, the Columbia Fixed Income Securities Fund purchased U.S. Treasury futures contracts in violation of investment restrictions. This position was subsequently sold off at a gain of $236. NOTE 9. LINE OF CREDIT The Funds and other affiliated funds participate in a $350,000,000 committed unsecured revolving line of credit provided by State Street Bank and Trust Company. Borrowings are used for temporary or emergency purposes to facilitate portfolio liquidity. Interest is charged to each participating fund based on its borrowings at a rate per annum equal to the Federal Funds rate plus 0.50%. In addition, a commitment fee of 0.10% per annum is accrued and apportioned among the participating funds based on their pro-rata portion of the unutilized line of credit. The commitment fee is included in "Other expenses" on the Statements of Operations. For the year ended August 31, 2005, the average daily loan balance outstanding on days where borrowings existed for the Columbia Mid Cap Growth Fund was $34,000,000 at a weighted average interest rate of 2.72%. For the year ended August 31, 2005, the average daily loan balance outstanding on days where borrowings existed for the Columbia Small Cap Growth Fund I was $16,166,667 at a weighted average interest rate of 2.77%. For the year ended August 31, 2005, the Funds, other than the Columbia Mid Cap Growth Fund and Columbia Small Cap Growth Fund I, did not borrow under this arrangement. NOTE 10. SHARES OF BENEFICIAL INTEREST As of August 31, 2005, the Funds had shareholders whose shares were beneficially owned by participant accounts over which Bank of America and/or its affiliates had either sole or joint investment discretion. Subscription and redemption activity in these accounts may have a significant effect on the operations of the Funds. The numbers of such accounts and the percentage of shares of beneficial interest outstanding held therein are as follows: % OF SHARES NUMBER OF OUTSTANDING SHAREHOLDERS HELD ------------ ----------- Columbia International Stock Fund ..................... 1 79.3% Columbia Mid Cap Growth Fund ........................... 2 22.3% Columbia Real Estate Equity Fund .................... 1 23.0% Columbia Strategic Investor Fund ........................... 1 5.3% Columbia Short Term Bond Fund ...................... 1 68.5% Columbia Fixed Income Securities Fund ................ 2 0.1% Columbia Conservative High Yield Fund ................ 1 37.1% As of August 31, 2005, several of the Funds had shareholders that held greater than 5% of the shares outstanding. Subscription and redemption activity of these accounts may have a significant effect on the operations of the Funds. The number of such accounts and the percentage of shares of beneficial interest outstanding held therein are as follows: % OF SHARES NUMBER OF OUTSTANDING SHAREHOLDERS HELD ------------ ----------- Columbia Mid Cap Growth Fund .................... 2 32.5% Columbia Small Cap Growth Fund I .................. 2 18.0% Columbia Real Estate Equity Fund .................... 1 22.0% Columbia Technology Fund .......... 2 24.2% Columbia Strategic Investor Fund ........................... 1 12.8% Columbia Fixed Income Securities Fund ................ 1 13.4% Columbia Oregon Intermediate Municipal Bond Fund ............ 1 7.5% Columbia Conservative High Yield Fund ................ 2 19.0% 152 ________________________________________________________________________________ AUGUST 31, 2005 COLUMBIA FUNDS NOTE 11. DISCLOSURE OF SIGNIFICANT RISKS AND CONTINGENCIES CONCENTRATION OF CREDIT RISK Columbia Oregon Intermediate Municipal Bond Fund holds investments that are insured by private insurers who guarantee the payment of principal and interest in the event of default or that are supported by a letter of credit. The insurers are rated Aaa by Moody's Investors Services, Inc. At August 31, 2005, private insurers who insured greater than 5% of the total investments of the Columbia Oregon Intermediate Municipal Bond Fund were as follows: % OF TOTAL INSURER INVESTMENTS --------------------------- ----------- Financial Guaranty Insurance Co. 13.8% Financial Security Assurance, Inc. 12.4% MBIA Insurance Corp. 11.8% Ambac Assurance Corp. 7.1% FOREIGN SECURITIES 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. In addition, the liquidity of foreign securities may be more limited than that of domestic securities. Investments in emerging market countries are subject to additional risk. The risk of foreign investments is typically increased in less developed countries. These countries are also more likely to experience high levels of inflation, deflation or currency devaluation which could hurt their economies and securities markets. GEOGRAPHIC CONCENTRATION Columbia Oregon Intermediate Municipal Bond Fund has greater than 5% of its total investments on August 31, 2005 invested in debt obligations issued by the state of Oregon and its political subdivisions, agencies and public authorities. This Fund is more susceptible to economic and political factors adversely affecting issuers of the state's municipal securities than are municipal bond funds that are not concentrated to the same extent in these issuers. HIGH-YIELD SECURITIES Investing in high-yield securities may involve greater credit risk and considerations not typically associated with investing in U.S. government bonds and other higher quality fixed income securities. These securities are non-investment grade securities, often referred to as "junk" bonds. Economic downturns may disrupt the high yield market and impair the ability of issuers to repay principal and interest. Also, an increase in interest rates would likely have an adverse impact on the value of such obligations. Moreover, high-yield securities may be less liquid to the extent that there is no established secondary market. INDUSTRY FOCUS The Funds may focus their investments in certain industries, subjecting them to greater risk than a fund that is more diversified. ISSUER FOCUS As non-diversified funds, the Columbia Real Estate Equity Fund, the Columbia Technology Fund and the Columbia Oregon Intermediate Municipal Bond Fund may invest a greater percentage of their total assets in the securities of fewer issuers than a diversified fund. The Funds may, therefore, have a greater risk of loss from a few issuers than a similar fund that invests more broadly. LEGAL PROCEEDINGS On February 9, 2005, Columbia Management Advisors, Inc. (which has since merged into Banc of America Capital Management, LLC) ("Columbia") and Columbia Funds Distributor, Inc. (which has been renamed Columbia Management Distributors, Inc. (the "Distributor") (collectively, the "Columbia Group") entered into an Assurance of Discontinuance with the New York Attorney General ("NYAG") (the "NYAG Settlement") and consented to the entry of a cease-and-desist order by the Securities and Exchange Commission ("SEC") (the "SEC Order"). The SEC Order and the NYAG Settlement are referred to collectively as the "Settlements". The Settlements contain substantially the same terms and conditions as outlined in the agreements in principle which 153 ________________________________________________________________________________ AUGUST 31, 2005 COLUMBIA FUNDS Columbia Group entered into with the SEC and NYAG in March 2004. Under the terms of the SEC Order, the Columbia Group has agreed among other things, to: pay $70 million in disgorgement and $70 million in civil money penalties; cease and desist from violations of the antifraud provisions and certain other provisions of the federal securities laws; maintain certain compliance and ethics oversight structures; retain an independent consultant to review the Columbia Group's applicable supervisory, compliance, control and other policies and procedures; and retain an independent distribution consultant (see below). The Columbia Funds have also voluntarily undertaken to implement certain governance measures designed to maintain the independence of their boards of trustees. The NYAG Settlement also, among other things, requires Columbia and its affiliates to reduce certain Columbia Funds (including the former Nations Funds) and other mutual funds management fees collectively by $32 million per year for five years, for a projected total of $160 million in management fee reductions. Pursuant to the procedures set forth in the SEC Order, the $140 million in settlement amounts described above will be distributed in accordance with a distribution plan to be developed by an independent distribution consultant who is acceptable to the SEC staff and the Columbia Funds' independent trustees. The distribution plan must be based on a methodology developed in consultation with the Columbia Group and the Fund's independent trustees and not unacceptable to the staff of the SEC. At this time, the distribution plan is still under development. As such, any gain to the Fund or its shareholders can not currently be determined. As a result of these matters or any adverse publicity or other developments resulting from them, there may be increased redemptions or reduced sales of fund shares, which could increase transaction costs or operating expenses, or have other adverse consequences for the Funds. A copy of the SEC Order is available on the SEC website at http://www.sec.gov. A copy of the NYAG Settlement is available as part of the Bank of America Corporation Form 8-K filing on February 10, 2005. In connection with the events described in detail above, various parties have filed suit against certain funds, the Trustees of the Columbia Funds, FleetBoston Financial Corporation and its affiliated entities and/or Bank of America Corporation and its affiliated entities. More than 300 cases including those filed against entities unaffiliated with the funds, their Boards, FleetBoston Financial Corporation and its affiliated entities and/or Bank of America Corporation and its affiliated entities have been transferred to the Federal District Court in Maryland and consolidated in a multi-district proceeding (the "MDL"). The derivative cases purportedly brought on behalf of the Columbia Funds in the MDL have been consolidated under the lead case. The fund derivative plaintiffs allege that the funds were harmed by market timing and late trading activity and seek, among other things, removal of the trustees of the Columbia Funds, removal of the Columbia Group, disgorgement of all management fees and monetary damages. The MDL is ongoing. Accordingly, an estimate of the financial impact of this litigation on any Fund, if any, can not currently be made. On March 21, 2005 purported class action plaintiffs filed suit in Massachusetts state court alleging that the conduct, including market timing, entitles Class B shareholders in certain Columbia funds to an exemption from contingent deferred sales charges upon early redemption ("the CDSC Lawsuit"). The CDSC Lawsuit has been removed to federal court in Massachusetts and the federal Judicial Panel has transferred the CDSC Lawsuit to the MDL. On January 11, 2005, a putative class action lawsuit was filed in federal district court in Massachusetts against, among others, the Trustees of the Columbia Funds and Columbia. The lawsuit alleges that defendants violated common law duties to fund shareholders as well as sections of the Investment Company Act of 1940, by failing to ensure that the Fund and other affiliated funds participated in securities class action settlements for which the funds were eligible. Specifically, plaintiffs allege that defendants failed to submit proof of claims in connection with settlements of securities class action lawsuits filed against companies in which the funds held positions. In 2004, certain Columbia Funds, the Trustees of the Columbia Funds, advisers and affiliated entities were named as defendants in certain purported shareholder class and derivative actions making claims, including claims under the Investment Company and the 154 ________________________________________________________________________________ AUGUST 31, 2005 COLUMBIA FUNDS Investment Advisers Acts of 1940 and state law. The suits seek damages and allege, inter alia, that the fees and expenses paid by the funds are excessive and that the advisers and their affiliates inappropriately used fund assets to distribute the funds and for other improper purpose. On March 2, 2005, the actions were consolidated in the Massachusetts federal court as IN RE COLUMBIA ENTITIES LITIGATION. The plaintiffs filed a consolidated amended complaint on June 9, 2005. The Fund and the other defendants to these actions, including Columbia and various of its affiliates, certain other mutual funds advised by Columbia and its affiliates, and various directors of such funds, have denied these allegations and are contesting the plaintiffs' claims. These proceedings are ongoing, however, based on currently available information, Columbia believes that these lawsuits are without merit, that the likelihood they will have a material adverse impact on any fund is remote, and that the lawsuits are not likely to materially affect its ability to provide investment management services to its clients, including the Fund. For the year ended August 31, 2005, Columbia has assumed legal, consulting services and Trustees' fees incurred by the Funds in connection with these matters as follows: Columbia International Stock Fund ........... $ 14,905 Columbia Mid Cap Growth Fund ................ 15,365 Columbia Small Cap Growth Fund I ............ 4,923 Columbia Real Estate Equity Fund ............ 16,146 Columbia Technology Fund .................... 827 Columbia Strategic Investor Fund ............ 8,869 Columbia Balanced Fund ...................... 6,932 Columbia Short Term Bond Fund ............... 8,860 Columbia Fixed Income Securities Fund ....... 5,158 Columbia Oregon Intermediate Municipal Bond Fund ................................. 7,693 Columbia Conservative High Yield Fund ....... 30,949 NOTE 12. BUSINESS COMBINATIONS & MERGERS FUND MERGERS On March 18, 2005, the Columbia International Equity Fund, a series of a separate Massachusetts business trust, merged into the Columbia International Stock Fund. The Columbia International Stock Fund received a tax-free transfer of assets from the Columbia International Equity Fund as follows: SHARES NET ASSETS UNREALIZED ISSUED RECEIVED APPRECIATION 1 ------ ---------- -------------- 30,878,363 $477,143,320 $ 62,414,535 NET ASSETS NET ASSETS NET ASSETS OF COLUMBIA OF COLUMBIA OF COLUMBIA INTERNATIONAL INTERNATIONAL INTERNATIONAL EQUITY FUND STOCK FUND STOCK FUND IMMEDIATELY IMMEDIATELY PRIOR TO PRIOR TO AFTER COMBINATION COMBINATION COMBINATION ------------- ------------- -------------- $678,273,286 $477,143,320 $1,155,416,606 1 Unrealized appreciation is included in the Net Assets Received amount shown above. NOTE 13. PROPOSED REORGANIZATIONS On May 4, 2005, the Board of Trustees approved a proposal to merge the Columbia Daily Income Company Fund into the Nations Cash Reserves. The proposal is subject to approval by shareholders of the Fund and the satisfaction of certain other conditions. If approved, the merger is expected to be completed in the fourth quarter of 2005. NOTE 14. SUBSEQUENT EVENT On September 23, 2005, the Columbia Short Term Bond Fund merged with the Nations Short-Term Income Fund and the Nations Short-Term Income Fund was renamed Columbia Short Term Bond Fund. On October 7, 2005, the Columbia Fixed Income Securities Fund merged with Columbia Total Return Bond Fund. 155 FINANCIAL HIGHLIGHTS ___________________________________________________________ COLUMBIA INTERNATIONAL STOCK FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
YEAR ENDED AUGUST 31, PERIOD ENDED PERIOD ENDED --------------------------- AUGUST 31, DECEMBER 31, CLASS A SHARES 2005 2004 2003 (a) 2002 (b) - ------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 13.04 $ 11.34 $ 10.05 $ 10.04 - ------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss) (c) 0.25 0.01 0.04 (0.02) Net realized and unrealized gain on investments and foreign currency, net of foreign capital gains tax 2.47 1.69 1.25 0.03 ---------- ---------- ---------- ----------- Total from investment operations 2.72 1.70 1.29 0.01 - ------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income --(d) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- REDEMPTION FEES: Redemption fees added to paid-in-capital --(c)(d) --(c)(d) -- -- - ------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $ 15.76 $ 13.04 $ 11.34 $ 10.05 Total return (e) 20.89%(f) 14.99%(f) 12.84%(g) 0.10%(g) - ------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $ 71,270 $ 24,119 $ 21,664 $ 20,178 Ratio of expenses to average net assets (h) 1.25% 1.72% 1.90%(i) 1.86%(i) Ratio of net investment income (loss) to average net assets (h) 1.71% 0.10% 0.61%(i) (0.39)%(i) Waiver 0.09% 0.09% -- -- Portfolio turnover rate 66% 90% 43%(g) 96% - -------------------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31. (b) Class A shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (c) Per share data was calculated using average shares outstanding during the period. (d) Rounds to less than $0.01 per share. (e) Total return at net asset value assuming all distributions reinvested and no initial sales charge or contingent deferred sales charge. (f) Had the Investment Advisor and/or Transfer Agent not waived 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.
YEAR ENDED AUGUST 31, PERIOD ENDED PERIOD ENDED --------------------------- AUGUST 31, DECEMBER 31, CLASS B SHARES 2005 2004 2003 (a) 2002 (b) - ------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 12.81 $ 11.23 $ 10.02 $ 10.04 - ------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss) (c) 0.07 (0.09) (0.03) (0.05) Net realized and unrealized gain on investments and foreign currency, net of foreign capital gains tax 2.49 1.67 1.24 0.03 ---------- ---------- ---------- ----------- Total from investment operations 2.56 1.58 1.21 (0.02) - ------------------------------------------------------------------------------------------------------------------------------- REDEMPTION FEES: Redemption fees added to paid-in-capital --(c)(d) --(c)(d) -- -- - ------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $ 15.37 $ 12.81 $ 11.23 $ 10.02 Total return (e)(f) 19.98% 14.07% 12.08%(g) (0.20)%(g) - ------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $ 12,026 $ 10,221 $ 10,316 $ 10,920 Ratio of expenses to average net assets (h) 2.01% 2.50% 2.98%(i) 3.64%(i) Ratio of net investment income (loss) to average net assets (h) 0.47% (0.69)% (0.47)%(i) (2.17)%(i) Waiver 0.10% 0.18% 0.11%(i) 0.11%(i) Portfolio turnover rate 66% 90% 43%(g) 96% - -------------------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31. (b) Class B shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (c) Per share data was calculated using average shares outstanding during the period. (d) Rounds to less than $0.01 per share. (e) Total return at net asset value assuming no contingent deferred sales charge. (f) Had the Investment Advisor and/or Transfer Agent not waived 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. 156 FINANCIAL HIGHLIGHTS ___________________________________________________________ COLUMBIA INTERNATIONAL STOCK FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
YEAR ENDED PERIOD ENDED AUGUST 31, AUGUST 31, CLASS C SHARES 2005 2004 (a) - -------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 12.86 $ 12.27 - -------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss) (b) 0.07 (0.01) Net realized and unrealized gain on investments and foreign currency, net of foreign capital gains tax 2.50 0.60 ---------- ------------ Total from investment operations 2.57 0.59 - -------------------------------------------------------------------------------------------------------------- REDEMPTION FEES: Redemption fees added to paid-in-capital (b)(c) -- -- - -------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $ 15.43 $ 12.86 Total return (d)(e) 19.98% 4.81%(f) - -------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $ 904 $ 632 Ratio of expenses to average net assets (g) 2.01% 2.11%(h) Ratio of net investment income (loss) to average net assets (g) 0.46% (0.05)%(h) Waiver 0.10% 0.35%(h) Portfolio turnover rate 66% 90% - --------------------------------------------------------------------------------------------------------------
(a) Class C shares were initially offered on October 13, 2003. 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) Had the Investment Advisor and/or Transfer Agent not waived a portion of expenses, total return would have been reduced. (f) Not annualized. (g) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (h) Annualized.
YEAR ENDED AUGUST 31, PERIOD ENDED PERIOD ENDED --------------------------- AUGUST 31, DECEMBER 31, CLASS D SHARES 2005 2004 2003 (a) 2002 (b) - ------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 12.91 $ 11.27 $ 10.02 $ 10.04 - ------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss) (c) 0.06 (0.04) --(d) (0.04) Net realized and unrealized gain on investments and foreign currency, net of foreign capital gains tax 2.51 1.68 1.25 0.02 ---------- ---------- ---------- ----------- Total from investment operations 2.57 1.64 1.25 (0.02) - ------------------------------------------------------------------------------------------------------------------------------- REDEMPTION FEES: Redemption fees added to paid-in-capital --(c)(d) --(c)(d) -- -- - ------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $ 15.48 $ 12.91 $ 11.27 $ 10.02 Total return (e)(f) 19.91% 14.55% 12.48%(g) (0.20)%(g) - ------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $ 740 $ 738 $ 633 $ 542 Ratio of expenses to average net assets (h) 2.01% 2.10% 2.49%(i) 3.48%(i) Ratio of net investment income (loss) to average net assets (h) 0.40% (0.27)% 0.02%(i) (2.01)%(i) Waiver 0.10% 0.57% 0.75%(i) 0.75%(i) Portfolio turnover rate 66% 90% 43%(g) 96% - -------------------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31. (b) Class D shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (c) Per share data was calculated using average shares outstanding during the period. (d) Rounds to less than $0.01 per share. (e) Total return at net asset value assuming no contingent deferred sales charge. (f) Had the Investment Advisor and/or Transfer Agent not waived 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. 157 FINANCIAL HIGHLIGHTS ___________________________________________________________ COLUMBIA INTERNATIONAL STOCK FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT THE PERIOD
PERIOD ENDED AUGUST 31, CLASS G SHARES 2005 (a) - ------------------------------------------------------------------------------------ NET ASSET VALUE, BEGINNING OF PERIOD $ 15.06 - ------------------------------------------------------------------------------------ INCOME FROM INVESTMENT OPERATIONS: Net investment income (b) 0.12 Net realized and unrealized gain on investments and foreign currency, net of foreign capital gains tax 0.19 ------------ Total from investment operations 0.31 - ------------------------------------------------------------------------------------ REDEMPTION FEES: Redemption fees added to paid-in-capital (b)(c) -- - ------------------------------------------------------------------------------------ NET ASSET VALUE, END OF PERIOD $ 15.37 Total return (d)(e)(f) 2.06% - ------------------------------------------------------------------------------------ RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $ 4,015 Ratio of expenses to average net assets (g)(h) 1.93% Ratio of net investment income to average net assets (g)(h) 0.81% Waiver (h) 0.08% Portfolio turnover rate 66% - ------------------------------------------------------------------------------------
(a) Class G shares were initially offered on March 18, 2005. 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) Had the Investment Advisor and/or Transfer Agent not waived a portion of expenses, total return would have been reduced. (f) Not annualized. (g) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (h) Annualized. 158 FINANCIAL HIGHLIGHTS ___________________________________________________________ COLUMBIA INTERNATIONAL STOCK FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
YEAR ENDED AUGUST 31, PERIOD ENDED YEAR ENDED AUGUST 31, ------------------------- AUGUST 31, ------------------------------------- CLASS Z SHARES 2005 2004 2003 (a) 2002 (b) 2001 2000 - ---------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 13.14 $ 11.40 $ 10.05 $ 12.03 $ 14.77 $ 22.81 - ---------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss) 0.25(c) 0.11(c) 0.07(c) --(c)(d) 0.01 (0.04) Net realized and unrealized gain (loss) on investments and foreign currency, net of foreign capital gains tax 2.53 1.67 1.27 (1.94) (2.74) (5.17) --------- --------- --------- ---------- --------- -------- Total from investment operations 2.78 1.78 1.34 (1.94) (2.73) (5.21) - ---------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.07) (0.04) -- (0.01) (0.01) -- From net realized gains -- -- -- -- -- (2.83) Return of capital -- -- -- (0.03) -- -- --------- --------- --------- ---------- --------- -------- Total distributions (0.07) (0.04) -- (0.04) (0.01) (2.83) - ---------------------------------------------------------------------------------------------------------------------------------- REDEMPTION FEES: Redemption fees added to paid-in-capital --(c)(d) --(c)(d) 0.01(c) -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $ 15.85 $ 13.14 $ 11.40 $ 10.05 $ 12.03 $ 14.77 Total return (e) 21.20%(f) 15.65%(f) 13.43%(f)(g) (16.10)%(f) (18.47)% (22.64)% - ---------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $ 964,495 $ 558,082 $ 248,718 $ 143,332 $ 135,626 $175,316 Ratio of expenses to average net assets (h) 1.00% 1.10% 1.47%(i) 1.49% 1.56% 1.42% Ratio of net investment income (loss) to average net assets (h) 1.71% 0.81% 1.03%(i) (0.02)% 0.06% (0.19)% Waiver 0.10% 0.18% 0.12%(i) 0.12% -- -- Portfolio turnover rate 66% 90% 43%(g) 96% 130% 112% - ----------------------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31. (b) On November 1, 2002, the existing Fund shares were renamed Class Z shares. (c) Per share data was calculated using average shares outstanding during the period. (d) Rounds to less than $0.01 per share. (e) Total return at net asset value assuming all distributions reinvested. (f) Had the Investment Advisor and/or Transfer Agent not waived 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. 159 FINANCIAL HIGHLIGHTS ___________________________________________________________ COLUMBIA MID CAP GROWTH FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
YEAR ENDED AUGUST 31, PERIOD ENDED PERIOD ENDED --------------------------- AUGUST 31, DECEMBER 31, CLASS A SHARES 2005 2004 2003 (a) 2002 (b) - ------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 16.99 $ 18.09 $ 14.77 $ 15.15 - ------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment loss (c) (0.15) (0.23) (0.14) (0.02) Net realized and unrealized gain (loss) on investments and foreign currency 5.32 (0.87) 3.46 (0.36) ---------- ---------- ---------- ----------- Total from investment operations 5.17 (1.10) 3.32 (0.38) - ------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $ 22.16 $ 16.99 $ 18.09 $ 14.77 Total return (d)(e) 30.43% (6.08)% 22.48%(f) (2.51)%(f) - ------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $ 6,078 $ 4,432 $ 4,525 $ 1,180 Ratio of operating expenses to average net assets (g) 1.23% 1.53% 1.60%(h) 1.49%(h) Ratio of interest expense to average net assets --%(i) -- -- -- Ratio of total expenses to average net assets (g) 1.23% 1.53% 1.60%(h) 1.49%(h) Ratio of net investment loss to average net assets (g) (0.76)% (1.21)% (1.31)%(h) (1.22)%(h) Waiver 0.05% 0.02% 0.01%(h) 0.01%(h) Portfolio turnover rate 104% 139% 78%(f) 88% - -------------------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31. (b) Class A shares were initially offered on November 1, 2002. Per share data and total return 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 no initial sales charge or contingent deferred sales charge. (e) Had the Investment Advisor not waived a portion of expenses, total return would have been reduced. (f) Not annualized. (g) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (h) Annualized. (i) Rounds to less than 0.01%.
YEAR ENDED AUGUST 31, PERIOD ENDED PERIOD ENDED --------------------------- AUGUST 31, DECEMBER 31, CLASS B SHARES 2005 2004 2003 (a) 2002 (b) - ------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 16.75 $ 17.98 $ 14.76 $ 15.15 - ------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment loss (c) (0.30) (0.36) (0.22) (0.04) Net realized and unrealized gain (loss) on investments and foreign currency 5.24 (0.87) 3.44 (0.35) ---------- ---------- ---------- ----------- Total from investment operations 4.94 (1.23) 3.22 (0.39) - ------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $ 21.69 $ 16.75 $ 17.98 $ 14.76 Total return (d)(e) 29.49% (6.84)% 21.82%(f) (2.57)%(f) - ------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $ 6,377 $ 5,079 $ 4,242 $ 3,383 Ratio of operating expenses to average net assets (g) 1.98% 2.29% 2.36%(h) 2.32%(h) Ratio of interest expense to average net assets --%(i) -- -- -- Ratio of total expenses to average net assets (g) 1.98% 2.29% 2.36%(h) 2.32%(h) Ratio of net investment loss to average net assets (g) (1.51)% (1.97)% (2.06)%(h) (2.05)%(h) Waiver 0.05% 0.10% 0.12%(h) 0.12%(h) Portfolio turnover rate 104% 139% 78%(f) 88% - -------------------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31. (b) Class B shares were initially offered on November 1, 2002. Per share data and total return 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 no contingent deferred sales charge. (e) Had the Investment Advisor not waived a portion of expenses, total return would have been reduced. (f) Not annualized. (g) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (h) Annualized. (i) Rounds to less than 0.01%. 160 FINANCIAL HIGHLIGHTS ___________________________________________________________ COLUMBIA MID CAP GROWTH FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
YEAR ENDED PERIOD ENDED AUGUST 31, AUGUST 31, CLASS C SHARES 2005 2004 (a) - -------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 16.79 $ 17.88 - -------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment loss (b) (0.30) (0.30) Net realized and unrealized gain (loss) on investments and foreign currency 5.25 (0.79) ---------- ------------ Total from investment operations 4.95 (1.09) - -------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $ 21.74 $ 16.79 Total return (c)(d) 29.48% (6.10)%(e) - -------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $ 674 $ 501 Ratio of operating expenses to average net assets (f) 1.98% 2.18%(g) Ratio of interest expense to average net assets --%(h) -- Ratio of total expenses to average net assets (f) 1.98% 2.18%(g) Ratio of net investment loss to average net assets (f) (1.52)% (1.83)%(g) Waiver 0.05% 0.08%(g) Portfolio turnover rate 104% 139% - --------------------------------------------------------------------------------------------------------------
(a) Class C shares were initially offered on October 13, 2003. 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 Investment Advisor not waived 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. (h) Rounds to less than 0.01%.
YEAR ENDED AUGUST 31, PERIOD ENDED PERIOD ENDED --------------------------- AUGUST 31, DECEMBER 31, CLASS D SHARES 2005 2004 2003 (a) 2002 (b) - ------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 16.77 $ 17.98 $ 14.76 $ 15.15 - ------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment loss (c) (0.30) (0.34) (0.21) (0.04) Net realized and unrealized gain (loss) on investments and foreign currency 5.24 (0.87) 3.43 (0.35) ---------- ---------- ---------- ----------- Total from investment operations 4.94 (1.21) 3.22 (0.39) - ------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $ 21.71 $ 16.77 $ 17.98 $ 14.76 Total return (d)(e) 29.46% (6.73)% 21.82%(f) (2.57)%(f) - ------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $ 438 $ 599 $ 737 $ 433 Ratio of operating expenses to average net assets (g) 1.98% 2.19% 2.27%(h) 2.32%(h) Ratio of interest expense to average net assets --%(i) -- -- -- Ratio of total expenses to average net assets (g) 1.98% 2.19% 2.27%(h) 2.32%(h) Ratio of net investment loss to average net assets (g) (1.54)% (1.87)% (1.97)%(h) (2.05)%(h) Waiver 0.05% 0.08% 0.09%(h) 0.09%(h) Portfolio turnover rate 104% 139% 78%(f) 88% - -------------------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31. (b) Class D shares were initially offered on November 1, 2002. Per share data and total return 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 no contingent deferred sales charge. (e) Had the Investment Advisor not waived a portion of expenses, total return would have been reduced. (f) Not annualized. (g) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (h) Annualized. (i) Rounds to less than 0.01%. 161 FINANCIAL HIGHLIGHTS ___________________________________________________________ COLUMBIA MID CAP GROWTH FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
YEAR ENDED AUGUST 31, PERIOD ENDED PERIOD ENDED --------------------------- AUGUST 31, DECEMBER 31, CLASS G SHARES 2005 2004 2003 (a) 2002 (b) - ------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 16.70 $ 17.98 $ 14.77 $ 15.15 - ------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment loss (c) (0.29) (0.41) (0.23) (0.04) Net realized and unrealized gain (loss) on investments and foreign currency 5.22 (0.87) 3.44 (0.34) ---------- ---------- ---------- ----------- Total from investment operations 4.93 (1.28) 3.21 (0.38) - ------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $ 21.63 $ 16.70 $ 17.98 $ 14.77 Total return (d) 29.52%(e) (7.12)%(e) 21.73%(f) (2.51)%(f) - ------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $ 724 $ 647 $ 806 $ 753 Ratio of operating expenses to average net assets (g) 1.93% 2.57% 2.47%(h) 2.35%(h) Ratio of interest expense to average net assets --%(i) -- -- -- Ratio of total expenses to average net assets (g) 1.93% 2.57% 2.47%(h) 2.35%(h) Ratio of net investment loss to average net assets (g) (1.47)% (2.25)% (2.17)%(h) (2.08)%(h) Waiver 0.05% 0.01% -- -- Portfolio turnover rate 104% 139% 78%(f) 88% - -------------------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31. (b) Class G shares were initially offered on November 1, 2002. Per share data and total return 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 no contingent deferred sales charge. (e) Had the Investment Advisor not waived a portion of expenses, total return would have been reduced. (f) Not annualized. (g) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (h) Annualized. (i) Rounds to less than 0.01%.
YEAR ENDED AUGUST 31, PERIOD ENDED PERIOD ENDED --------------------------- AUGUST 31, DECEMBER 31, CLASS T SHARES 2005 2004 2003 (a) 2002 (b) - ------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 17.03 $ 18.12 $ 14.79 $ 15.15 - ------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment loss (c) (0.16) (0.22) (0.12) (0.02) Net realized and unrealized gain (loss) on investments and foreign currency 5.33 (0.87) 3.45 (0.34) ---------- ---------- ---------- ---------- Total from investment operations 5.17 (1.09) 3.33 (0.36) - ------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $ 22.20 $ 17.03 $ 18.12 $ 14.79 Total return (d) 30.36%(e) (6.02)%(e) 22.52%(f) (2.38)%(f) - ------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $ 27,969 $ 25,236 $ 29,920 $ 25,966 Ratio of operating expenses to average net assets (g) 1.28% 1.50% 1.46%(h) 1.45%(h) Ratio of interest expense to average net assets --%(i) -- -- -- Ratio of total expenses to average net assets (g) 1.28% 1.50% 1.46%(h) 1.45%(h) Ratio of net investment loss to average net assets (g) (0.82)% (1.19)% (1.16)%(h) (1.18)%(h) Waiver 0.05% 0.01% -- -- Portfolio turnover rate 104% 139% 78%(f) 88% - -------------------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31. (b) Class T shares were initially offered on November 1, 2002. Per share data and total return 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 no initial sales charge or contingent deferred sales charge. (e) Had the Investment Advisor not waived a portion of expenses, total return would have been reduced. (f) Not annualized. (g) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (h) Annualized. (i) Rounds to less than 0.01%. 162 FINANCIAL HIGHLIGHTS ___________________________________________________________ COLUMBIA MID CAP GROWTH FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
YEAR ENDED AUGUST 31, PERIOD ENDED YEAR ENDED DECEMBER 31, ------------------------ AUGUST 31, ------------------------------------- CLASS Z SHARES 2005 2004 2003 (a) 2002 (b) 2001 2000 - -------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 17.14 $ 18.17 $ 14.79 $ 19.60 $ 25.99 $ 29.93 - -------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment loss (0.10)(c) (0.14)(c) (0.08)(c) (0.13)(c) (0.11) (0.10) Net realized and unrealized gain (loss) on investments and foreign currency 5.37 (0.89) 3.46 (4.68) (5.35) 4.45 --------- --------- ----------- ---------- --------- ---------- Total from investment operations 5.27 (1.03) 3.38 (4.81) (5.46) 4.35 - -------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net realized gains -- -- -- -- (0.93) (8.29) - -------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $ 22.41 $ 17.14 $ 18.17 $ 14.79 $ 19.60 $ 25.99 Total return (d) 30.75%(e) (5.67)%(e) 22.85%(e)(f) (24.54)%(e) (20.98)% 13.84% - -------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $ 799,505 $ 825,988 $ 998,943 $ 807,342 $ 786,071 $1,095,525 Ratio of operating expenses to average net assets (g) 0.98% 1.07% 1.09%(h) 1.12% 1.08% 0.99% Ratio of interest expense to average net assets --%(i) -- -- -- -- -- Ratio of total expenses to average net assets (g) 0.98% 1.07% 1.09%(h) 1.12% 1.08% 0.99% Ratio of net investment loss to average net assets (g) (0.52)% (0.75)% (0.80)%(h) (0.85)% (0.49)% (0.38)% Waiver 0.05% 0.05% 0.05%(h) 0.05% -- -- Portfolio turnover rate 104% 139% 78%(f) 88% 186% 169% - --------------------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31. (b) On November 1, 2002, the existing Fund shares were renamed Class Z shares. (c) Per share data was calculated using average shares outstanding during the period. (d) Total return at net asset value assuming all distributions reinvested. (e) Had the Investment Advisor not waived a portion of expenses, total return would have been reduced. (f) Not annualized. (g) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (h) Annualized. (i) Rounds to less than 0.01%. 163 FINANCIAL HIGHLIGHTS ___________________________________________________________ COLUMBIA SMALL CAP GROWTH FUND I FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
YEAR ENDED AUGUST 31, PERIOD ENDED YEAR ENDED DECEMBER 31, ------------------------ AUGUST 31, ------------------------------------- CLASS Z SHARES 2005 2004 2003 (a) 2002 (b) 2001 2000 - -------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 21.32 $ 21.62 $ 16.30 $ 22.20 $ 25.87 $ 27.26 - -------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment loss (0.24)(c) (0.24)(c) (0.13)(c) (0.17)(c) (0.13) (0.10) Net realized and unrealized gain (loss) on investments 6.72 (0.06) 5.45 (5.73) (3.54) 1.75 --------- --------- ----------- ---------- --------- ---------- Total from investment operations 6.48 (0.30) 5.32 (5.90) (3.67) 1.65 - -------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net realized gains -- -- -- -- -- (3.04) - -------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $ 27.80 $ 21.32 $ 21.62 $ 16.30 $ 22.20 $ 25.87 Total return (d) 30.39%(e) (1.39)% 32.64%(f) (26.58)% (14.19)% 5.85% - -------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $ 214,659 $ 543,016 $ 637,616 $ 493,031 $ 617,966 $ 518,970 Ratio of operating expenses to average net assets (g) 1.16% 1.18% 1.28%(h) 1.24% 1.23% 1.22% Ratio of interest expense to average net assets --%(i) -- -- -- -- -- Ratio of total expenses to average net assets (g) 1.16% 1.18% 1.28%(h) 1.24% 1.23% 1.22% Ratio of net investment loss to average net assets (g) (0.99)% (1.01)% (1.09)%(h) (0.90)% (0.71)% (0.44)% Portfolio turnover rate 114% 118% 79%(f) 109% 129% 145% - --------------------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31. (b) On November 1, 2002, the existing Fund shares were renamed Class Z shares. (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) Total return includes a reimbursement of loss experienced by the Fund due to compliance violation. This reimbursement had an impact of less than 0.01% on the Fund's total return. (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. (i) Rounds to less than 0.01%. 164 FINANCIAL HIGHLIGHTS ___________________________________________________________ COLUMBIA REAL ESTATE EQUITY FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
YEAR ENDED AUGUST 31, PERIOD ENDED PERIOD ENDED --------------------------- AUGUST 31, DECEMBER 31, CLASS A SHARES 2005 2004 2003 (a) 2002 (b) - ------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 25.59 $ 21.04 $ 17.80 $ 17.01 - ------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (c) 0.79(d) 0.77 0.36(e) 0.26 Net realized and unrealized gain on investments 4.73 4.67 3.11(e) 0.78 ---------- ---------- ---------- ----------- Total from investment operations 5.52 5.44 3.47 1.04 - ------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.75) (0.70) (0.23) (0.25) From net realized gains (2.52) (0.19) -- -- ---------- ---------- ---------- ----------- Total distributions (3.27) (0.89) (0.23) (0.25) - ------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $ 27.84 $ 25.59 $ 21.04 $ 17.80 Total return (f) 22.65% 26.42% 19.62%(g) 6.10%(g) - ------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $ 45,756 $ 32,703 $ 12,364 $ 905 Ratio of expenses to average net assets (h) 1.18% 1.20% 1.55%(i) 1.43%(i) Ratio of net investment income to average net assets (h) 2.98% 3.27% 2.70%(e)(i) 4.81%(i) Portfolio turnover rate 10% 28% 33%(g) 53% - -------------------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31. (b) Class A shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (c) Per share data was calculated using average shares outstanding during the period. (d) Net investment income per share reflects a special dividend. The effect of this dividend amounted to $0.24 per share. (e) Effective January 1, 2003, the Fund adopted the policy to reduce cost of investments for financial statement purposes by the distributions received in excess of income from Real Estate Investment Trusts. The effect of this change for the eight months ended August 31, 2003 was to decrease the net investment income per share by $0.05, increase net realized and unrealized gain on investments per share by $0.05 and decrease the ratio of net investment income to average net assets from 3.12% to 2.70%. Per share data and ratios for the period prior to August 31, 2003 have not been restated to reflect this change in policy. (f) Total return at net asset value assuming all distributions reinvested and no initial sales charge or contingent deferred sales charge. (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. 165 FINANCIAL HIGHLIGHTS ___________________________________________________________ COLUMBIA REAL ESTATE EQUITY FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
YEAR ENDED AUGUST 31, PERIOD ENDED PERIOD ENDED --------------------------- AUGUST 31, DECEMBER 31, CLASS B SHARES 2005 2004 2003 (a) 2002 (b) - ------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 25.60 $ 21.03 $ 17.82 $ 17.01 - ------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (c) 0.60(d) 0.58 0.24(e) 0.22 Net realized and unrealized gain on investments 4.73 4.70 3.12(e) 0.81 ---------- ---------- ---------- ----------- Total from investment operations 5.33 5.28 3.36 1.03 - ------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.56) (0.52) (0.15) (0.22) From net realized gains (2.52) (0.19) -- -- ---------- ---------- ---------- ----------- Total distributions (3.08) (0.71) (0.15) (0.22) - ------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $ 27.85 $ 25.60 $ 21.03 $ 17.82 Total return (f) 21.74% 25.53% 18.97%(g) 6.09%(g) - ------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $ 14,393 $ 11,234 $ 4,776 $ 1,074 Ratio of expenses to average net assets (h) 1.93% 1.98% 2.37%(i) 2.18%(i) Ratio of net investment income to average net assets (h) 2.26% 2.47% 1.86%(e)(i) 4.06%(i) Portfolio turnover rate 10% 28% 33%(g) 53% - -------------------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31. (b) Class B shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (c) Per share data was calculated using average shares outstanding during the period. (d) Net investment income per share reflects a special dividend. The effect of this dividend amounted to $0.24 per share. (e) Effective January 1, 2003, the Fund adopted the policy to reduce cost of investments for financial statement purposes by the distributions received in excess of income from Real Estate Investment Trusts. The effect of this change for the eight months ended August 31, 2003 was to decrease the net investment income per share by $0.05, increase net realized and unrealized gain on investments per share by $0.05 and decrease the ratio of net investment income to average net assets from 2.28% to 1.86%. Per share data and ratios for the period prior to August 31, 2003 have not been restated to reflect this change in policy. (f) Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge. (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. 166 FINANCIAL HIGHLIGHTS ___________________________________________________________ COLUMBIA REAL ESTATE EQUITY FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
YEAR ENDED PERIOD ENDED AUGUST 31, AUGUST 31, CLASS C SHARES 2005 2004 (a) - ------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 25.58 $ 21.99 - ------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (b) 0.55(c) 0.41 Net realized and unrealized gain on investments 4.78 3.72 ---------- ------------ Total from investment operations 5.33 4.13 - ------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.56) (0.35) From net realized gains (2.52) (0.19) ---------- ------------ Total distributions (3.08) (0.54) - ------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $ 27.83 $ 25.58 Total return (d) 21.75% 18.99%(e) - ------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $ 4,821 $ 2,404 Ratio of expenses to average net assets (f) 1.93% 1.95%(g) Ratio of net investment income to average net assets (f) 2.08% 1.93%(g) Portfolio turnover rate 10% 28% - -------------------------------------------------------------------------------------------------
(a) Class C shares were initially offered on October 13, 2003. 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) Net investment income per share reflects a special dividend. The effect of this dividend amounted to $0.24 per share. (d) Total return at net asset value assuming all distributions reinvested and 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.
YEAR ENDED AUGUST 31, PERIOD ENDED PERIOD ENDED --------------------------- AUGUST 31, DECEMBER 31, CLASS D SHARES 2005 2004 2003 (a) 2002 (b) - ------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 25.59 $ 21.03 $ 17.82 $ 17.01 - ------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (c) 0.60(d) 0.65 0.27(e) 0.21 Net realized and unrealized gain on investments 4.73 4.63 3.10(e) 0.82 ---------- ---------- ----------- ----------- Total from investment operations 5.33 5.28 3.37 1.03 - ------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.56) (0.53) (0.16) (0.22) From net realized gains (2.52) (0.19) -- -- ---------- ---------- ----------- ----------- Total distributions (3.08) (0.72) (0.16) (0.22) - ------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $ 27.84 $ 25.59 $ 21.03 $ 17.82 Total return (f) 21.75% 25.55% 18.99%(g) 6.09%(g) - ------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $ 4,263 $ 4,059 $ 3,466 $ 365 Ratio of expenses to average net assets (h) 1.93% 1.96% 2.30%(i) 2.18%(i) Ratio of net investment income to average net assets (h) 2.28% 2.81% 2.02%(e)(i) 4.06%(i) Portfolio turnover rate 10% 28% 33%(g) 53% - -------------------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31. (b) Class D shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (c) Per share data was calculated using average shares outstanding during the period. (d) Net investment income per share reflects a special dividend. The effect of this dividend amounted to $0.24 per share. (e) Effective January 1, 2003, the Fund adopted the policy to reduce cost of investments for financial statement purposes by the distributions received in excess of income from Real Estate Investment Trusts. The effect of this change for the eight months ended August 31, 2003 was to decrease the net investment income per share by $0.05, increase net realized and unrealized gain on investments per share by $0.05 and decrease the ratio of net investment income to average net assets from 2.44% to 2.02%. Per share data and ratios for the period prior to August 31, 2003 have not been restated to reflect this change in policy. (f) Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge. (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. 167 FINANCIAL HIGHLIGHTS ___________________________________________________________ COLUMBIA REAL ESTATE EQUITY FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
YEAR ENDED AUGUST 31, PERIOD ENDED YEAR ENDED DECEMBER 31, ------------------------- AUGUST 31, ------------------------------------- CLASS Z SHARES 2005 2004 2003 (a) 2002 (b) 2001 2000 - -------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 25.60 $ 21.06 $ 17.81 $ 18.04 $ 17.89 $ 14.57 - -------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income 0.90(c)(d) 0.88(c) 0.39(c)(e) 0.82(c) 0.79 0.81 Net realized and unrealized gain (loss) on investments 4.70 4.62 3.14(e) (0.25) 0.15 3.32 --------- --------- ----------- ---------- --------- ---------- Total from investment operations 5.60 5.50 3.53 0.57 0.94 4.13 - -------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.82) (0.77) (0.28) (0.71) (0.72) (0.75) From net realized gains (2.52) (0.19) -- (0.09) (0.07) (0.06) --------- --------- ----------- ---------- --------- ---------- Total distributions (3.34) (0.96) (0.28) (0.80) (0.79) (0.81) - -------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $ 27.86 $ 25.60 $ 21.06 $ 17.81 $ 18.04 $ 17.89 Total return (f) 22.99% 26.72% 20.01%(g) 3.12% 5.41% 28.84% - -------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $ 758,147 $ 872,924 $ 884,747 $ 774,646 $ 621,590 $ 436,764 Ratio of expenses to average net assets (h) 0.93% 0.97% 1.08%(i) 0.94% 0.95% 0.96% Ratio of net investment income to average net assets (h) 3.40% 3.78% 3.09%(e)(i) 5.30% 4.65% 5.16% Portfolio turnover rate 10% 28% 33%(g) 53% 41% 25% - --------------------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31. (b) On November 1, 2002, the existing Fund shares were renamed Class Z shares. (c) Per share data was calculated using average shares outstanding during the period. (d) Net investment income per share reflects a special dividend. The effect of this dividend amounted to $0.24 per share. (e) Effective January 1, 2003, the Fund adopted the policy to reduce cost of investments for financial statement purposes by the distributions received in excess of income from Real Estate Investment Trusts. The effect of this change for the eight months ended August 31, 2003 was to decrease the net investment income per share by $0.05, increase net realized and unrealized gain on investments per share by $0.05 and decrease the ratio of net investment income to average net assets from 3.51% to 3.09%. Per share data and ratios for the period prior to August 31, 2003 have not been restated to reflect this change in policy. (f) Total return at net asset value assuming all distributions reinvested. (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. 168 FINANCIAL HIGHLIGHTS ___________________________________________________________ COLUMBIA TECHNOLOGY FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
YEAR ENDED AUGUST 31, PERIOD ENDED PERIOD ENDED --------------------------- AUGUST 31, DECEMBER 31, CLASS A SHARES 2005 2004 2003 (a) 2002 (b) - ------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 6.50 $ 5.91 $ 3.79 $ 3.82 - ------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment loss (c) (0.04) (0.11) (0.04) (0.01) Net realized and unrealized gain (loss) on investments, futures contracts and written options 2.31 0.70 2.16 (0.02) ---------- ---------- ----------- ----------- Total from investment operations 2.27 0.59 2.12 (0.03) - ------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $ 8.77 $ 6.50 $ 5.91 $ 3.79 Total return (d)(e) 34.92% 9.98% 55.94%(f) (0.79)%(f) - ------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $ 14,696 $ 2,818 $ 376 $ 1 Ratio of expenses to average net assets (g) 1.85% 1.90% 1.90%(h) 1.76%(h) Ratio of net investment loss to average net assets (g) (1.47)% (1.51)% (1.35)%(h) (1.35)%(h) Reimbursement 0.06% 0.53% 3.06%(h) 1.24%(h) Portfolio turnover rate 328% 488% 523%(f) 512% - -------------------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31. (b) Class A shares were initially offered on November 1, 2002. Per share data and total return 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 no initial sales charge or contingent deferred sales charge. (e) Had the Investment Advisor not reimbursed a portion of expenses, total return would have been reduced. (f) Not annualized. (g) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (h) Annualized.
YEAR ENDED AUGUST 31, PERIOD ENDED PERIOD ENDED --------------------------- AUGUST 31, DECEMBER 31, CLASS B SHARES 2005 2004 2003 (a) 2002 (b) - ------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 6.40 $ 5.86 $ 3.78 $ 3.82 - ------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment loss (c) (0.17) (0.16) (0.07) (0.01) Net realized and unrealized gain (loss) on investments, futures contracts and written options 2.34 0.70 2.15 (0.03) ---------- ---------- ----------- ----------- Total from investment operations 2.17 0.54 2.08 (0.04) - ------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $ 8.57 $ 6.40 $ 5.86 $ 3.78 Total return (d)(e) 33.91% 9.22% 55.03%(f) (1.05)%(f) - ------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $ 3,183 $ 2,200 $ 1,246 $ 7 Ratio of expenses to average net assets (g) 2.60% 2.65% 2.65%(h) 2.51%(h) Ratio of net investment loss to average net assets (g) (2.29)% (2.30)% (2.11)%(h) (2.10)%(h) Reimbursement 0.06% 0.48% 2.40%(h) 1.24%(h) Portfolio turnover rate 328% 488% 523%(f) 512% - -------------------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31. (b) Class B shares were initially offered on November 1, 2002. Per share data and total return 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 no contingent deferred sales charge. (e) Had the Investment Advisor not reimbursed a portion of expenses, total return would have been reduced. (f) Not annualized. (g) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (h) Annualized. 169 FINANCIAL HIGHLIGHTS ___________________________________________________________ COLUMBIA TECHNOLOGY FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
YEAR ENDED AUGUST 31, --------------------------- CLASS C SHARES 2005 2004 (a) - ------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 6.41 $ 6.48 - ------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment loss (b) (0.17) (0.14) Net realized and unrealized gain on investments, futures contracts and written options 2.35 0.07 ---------- ------------ Total from investment operations 2.18 (0.07) - ------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $ 8.59 $ 6.41 Total return (c)(d) 34.01% (1.08)%(e) - ------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $ 1,972 $ 488 Ratio of expenses to average net assets (f) 2.60% 2.65%(g) Ratio of net investment loss to average net assets (f) (2.23)% (2.18)%(g) Reimbursement 0.06% 0.68%(g) Portfolio turnover rate 328% 488% - -------------------------------------------------------------------------------------------------
(a) Class C shares were initially offered on October 13, 2003. 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 Investment Advisor not 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.
YEAR ENDED AUGUST 31, PERIOD ENDED PERIOD ENDED --------------------------- AUGUST 31, DECEMBER 31, CLASS D SHARES 2005 2004 2003 (a) 2002 (b) - ------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 6.43 $ 5.88 $ 3.78 $ 3.82 - ------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment loss (c) (0.18) (0.16) (0.07) (0.01) Net realized and unrealized gain (loss) on investments, futures contracts and written options 2.37 0.71 2.17 (0.03) ---------- ---------- ----------- ------------ Total from investment operations 2.19 0.55 2.10 (0.04) - ------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $ 8.62 $ 6.43 $ 5.88 $ 3.78 Total return (d)(e) 34.06% 9.35% 55.56%(f) (1.05)%(f) - ------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $ 22 $ 21 $ 15 $ 1 Ratio of expenses to average net assets (g) 2.60% 2.65% 2.65%(h) 2.51%(h) Ratio of net investment loss to average net assets (g) (2.30)% (2.31)% (2.13)%(h) (2.10)%(h) Reimbursement 0.06% 0.77% 4.00%(h) 1.24%(h) Portfolio turnover rate 328% 488% 523%(f) 512% - -------------------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31. (b) Class D shares were initially offered on November 1, 2002. Per share data and total return 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 no contingent deferred sales charge. (e) Had the Investment Advisor not reimbursed a portion of expenses, total return would have been reduced. (f) Not annualized. (g) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (h) Annualized. 170 FINANCIAL HIGHLIGHTS ___________________________________________________________ COLUMBIA TECHNOLOGY FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
YEAR ENDED AUGUST 31, PERIOD ENDED YEAR ENDED DECEMBER 31, PERIOD ENDED ------------------------- AUGUST 31, ------------------------ DECEMBER 31, CLASS Z SHARES 2005 2004 2003 (a) 2002 (b) 2001 2000(c) - -------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 6.55 $ 5.93 $ 3.79 $ 6.13 $ 8.63 $ 10.00 - ------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss) (0.10)(d) (0.09)(d) (0.04)(d) (0.06)(d) (0.08) 0.01 Net realized and unrealized gain (loss) on investments, futures contracts and written options 2.41 0.71 2.18 (2.28) (2.42) (1.37) --------- --------- ----------- ---------- --------- --------- Total from investment operations 2.31 0.62 2.14 (2.34) (2.50) (1.36) - ------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income -- -- -- -- -- (0.01) - ------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $ 8.86 $ 6.55 $ 5.93 $ 3.79 $ 6.13 $ 8.63 Total return (e)(f) 35.27% 10.46% 56.46%(g) (38.17)% (28.97)% (13.78)%(g) - ------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $ 40,947 $ 30,268 $ 19,663 $ 8,055 $ 10,385 $ 4,327 Ratio of expenses to average net assets (h) 1.60% 1.65% 1.65%(i) 1.65% 1.69% 1.48%(i) Ratio of net investment income (loss) to average net assets (h) (1.29)% (1.30)% (1.19)%(i) (1.24)% (1.26)% 0.99%(i) Reimbursement 0.06% 0.53% 2.73%(i) 1.33% 1.13% 7.49%(i) Portfolio turnover rate 328% 488% 523%(g) 512% 413% 63%(g) - -------------------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31. (b) On November 1, 2002, the existing Fund shares were renamed Class Z shares. (c) The Fund commenced investment operations on October 27, 2000. Per share data, total return and portfolio turnover rate reflect activity from that date. (d) Per share data was calculated using average shares outstanding during the period. (e) Total return at net asset value assuming all distributions reinvested. (f) Had the Investment Advisor not 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. 171 FINANCIAL HIGHLIGHTS ___________________________________________________________ COLUMBIA STRATEGIC INVESTOR FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
YEAR ENDED AUGUST 31, PERIOD ENDED PERIOD ENDED -------------------------- AUGUST 31, DECEMBER 31, CLASS A SHARES 2005 2004 2003 (a) 2002 (b) - ------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 18.37 $ 15.95 $ 13.13 $ 12.72 - ------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (c) 0.01 0.03 0.06 0.01 Net realized and unrealized gain on investments and foreign currency 3.08 2.46 2.76 0.40 ---------- ---------- ------------ ------------ Total from investment operations 3.09 2.49 2.82 0.41 - ------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.03) (0.07) -- -- From net realized gains (0.22) -- -- -- ---------- ---------- ------------ ------------ Total distributions (0.25) (0.07) -- -- - ------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $ 21.21 $ 18.37 $ 15.95 $ 13.13 Total return (d) 16.88%(e) 15.64%(e) 21.48%(f) 3.22%(f) - ------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $ 169,340 $ 99,608 $ 60,112 $ 53,526 Ratio of expenses to average net assets (g) 1.24% 1.27% 1.30%(h) 1.21%(h) Ratio of net investment income to average net assets (g) 0.64% 0.19% 0.60%(h) 0.64%(h) Waiver 0.03% 0.01% -- -- Portfolio turnover rate 80% 106% 68%(f) 188% - -------------------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31. (b) Class A shares were initially offered on November 1, 2002. Per share data and total return 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 and no initial sales charge or contingent deferred sales charge. (e) Had the Investment Advisor not waived a portion of expenses, total return would have been reduced. (f) Not annualized. (g) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (h) Annualized.
YEAR ENDED AUGUST 31, PERIOD ENDED PERIOD ENDED -------------------------- AUGUST 31, DECEMBER 31, CLASS B SHARES 2005 2004 2003 (a) 2002 (b) - ------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 18.17 $ 15.82 $ 13.10 $ 12.72 - ------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment loss (c) --(d) (0.10) (0.03) (0.01) Net realized and unrealized gain on investments and foreign currency 2.89 2.45 2.75 0.39 ---------- ---------- ----------- ------------ Total from investment operations 2.89 2.35 2.72 0.38 - ------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net realized gains (0.22) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $ 20.84 $ 18.17 $ 15.82 $ 13.10 Total return (e)(f) 15.97% 14.85% 20.76%(g) 2.99%(g) - ------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $ 49,318 $ 22,071 $ 3,398 $ 2,350 Ratio of expenses to average net assets (h) 1.99% 2.02% 2.22%(i) 2.36%(i) Ratio of net investment loss to average net assets (h) (0.09)% (0.57)% (0.33)%(i) (0.51)%(i) Waiver 0.03% 0.14% 0.23%(i) 0.23%(i) Portfolio turnover rate 80% 106% 68%(g) 188% - -------------------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31. (b) Class B shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (c) Per share data was calculated using average shares outstanding during the period. (d) Rounds to less than $0.01 per share. (e) Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge. (f) Had the Investment Advisor not waived 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. 172 FINANCIAL HIGHLIGHTS ___________________________________________________________ COLUMBIA STRATEGIC INVESTOR FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
YEAR ENDED PERIOD ENDED AUGUST 31, AUGUST 31, CLASS C SHARES 2005 2004 (a) - -------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 18.18 $ 16.42 - -------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment loss (b) --(c) (0.09) Net realized and unrealized gain on investments and foreign currency 2.89 1.85 ---------- ------------ Total from investment operations 2.89 1.76 - -------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net realized gains (0.22) -- - -------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $ 20.85 $ 18.18 Total return (d)(e) 15.96% 10.72%(f) - -------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $ 39,253 $ 14,821 Ratio of expenses to average net assets (g) 1.99% 2.05%(h) Ratio of net investment loss to average net assets (g) (0.09)% (0.57)%(h) Waiver 0.03% 0.07%(h) Portfolio turnover rate 80% 106% - --------------------------------------------------------------------------------------------------------------
(a) Class C shares were initially offered on October 13, 2003. 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 contingent deferred sales charge. (e) Had the Investment Advisor not waived a portion of expenses, total return would have been reduced. (f) Not annualized. (g) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (h) Annualized.
YEAR ENDED AUGUST 31, PERIOD ENDED PERIOD ENDED -------------------------- AUGUST 31, DECEMBER 31, CLASS D SHARES 2005 2004 2003 (a) 2002 (b) - ------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 18.17 $ 15.81 $ 13.11 $ 12.72 - ------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment loss (c) --(d) (0.08) (0.05) (0.01) Net realized and unrealized gain on investments and foreign currency 2.89 2.44 2.75 0.40 ---------- ---------- ----------- ------------ Total from investment operations 2.89 2.36 2.70 0.39 - ------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net realized gains (0.22) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $ 20.84 $ 18.17 $ 15.81 $ 13.11 Total return (e)(f) 15.97% 14.93% 20.59%(g) 3.07%(g) - ------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $ 525 $ 693 $ 704 $ 355 Ratio of expenses to average net assets (h) 1.99% 1.94% 2.34%(i) 2.28%(i) Ratio of net investment loss to average net assets (h) (0.14)% (0.48)% (0.48)%(i) (0.43)%(i) Waiver 0.03% 0.12% 0.15%(i) 0.15%(i) Portfolio turnover rate 80% 106% 68%(g) 188% - -------------------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31. (b) Class D shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (c) Per share data was calculated using average shares outstanding during the period. (d) Rounds to less than $0.01 per share. (e) Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge. (f) Had the Investment Advisor not waived 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. 173 FINANCIAL HIGHLIGHTS ___________________________________________________________ COLUMBIA STRATEGIC INVESTOR FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
YEAR ENDED AUGUST 31, PERIOD ENDED YEAR ENDED DECEMBER 31, PERIOD ENDED ----------------------- AUGUST 31, ----------------------- DECEMBER 31, CLASS Z SHARES 2005 2004 2003 (a) 2002 (b) 2001 2000(c) - ----------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 18.42 $ 15.98 $ 13.14 $ 14.52 $ 11.23 $ 10.00 - ------------------------------------------------------------------------------------------------------------------------------ INCOME FROM INVESTMENT OPERATIONS: Net investment income 0.01(d) 0.08(d) 0.08(d) 0.10(d) 0.05 0.02 Net realized and unrealized gain (loss) on investments and foreign currency 3.13 2.47 2.76 (1.35) 3.29 1.23 --------- --------- ----------- --------- --------- ---------- Total from investment operations 3.14 2.55 2.84 (1.25) 3.34 1.25 - ----------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.07) (0.11) -- (0.11) (0.05) (0.02) From net realized gains (0.22) -- -- (0.02) -- -- --------- --------- ----------- --------- --------- ---------- Total distributions (0.29) (0.11) -- (0.13) (0.05) (0.02) - ----------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $ 21.27 $ 18.42 $ 15.98 $ 13.14 $ 14.52 $ 11.23 Total return (e) 17.16%(f) 15.98%(f) 21.61%(f)(g) (8.56)%(f) 29.76% 12.25%(f)(g) - ----------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $ 267,380 $ 272,178 $ 227,454 $ 209,610 $ 139,504 $ 9,526 Ratio of expenses to average net assets (h) 0.99% 1.02% 1.08%(i) 1.23% 1.13% 1.34%(i) Ratio of net investment income to average net assets (h) 0.86% 0.44% 0.82%(i) 0.62% 0.71% 1.92%(i) Waiver 0.03% 0.03% 0.03%(i) 0.03% -- 3.97%(i) Portfolio turnover rate 80% 106% 68%(g) 188% 278% 64%(g) - -----------------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31. (b) On November 1, 2002, the existing Fund shares were renamed Class Z shares. (c) The Fund commenced investment operations on October 27, 2000. Per share data, total return and portfolio turnover rate reflect activity from that date. (d) Per share data was calculated using average shares outstanding during the period. (e) Total return at net asset value assuming all distributions reinvested. (f) Had the Investment Advisor not waived 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. 174 FINANCIAL HIGHLIGHTS ___________________________________________________________ COLUMBIA BALANCED FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
YEAR ENDED AUGUST 31, PERIOD ENDED PERIOD ENDED -------------------------- AUGUST 31, DECEMBER 31, CLASS A SHARES 2005 2004 2003 (a) 2002 (b) - ------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 19.86 $ 19.18 $ 17.52 $ 17.58 - ------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (c) 0.02(d) 0.29 0.16 0.03 Net realized and unrealized gain on investments and futures contracts 2.28 0.67 1.64 --(e) ---------- ---------- ----------- ------------ Total from investment operations 2.30 0.96 1.80 0.03 - ------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.41) (0.28) (0.14) (0.09) - ------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $ 21.75 $ 19.86 $ 19.18 $ 17.52 Total return (f) 11.72% 4.99% 10.35%(g) 0.19%(g) - ------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $ 3,378 $ 2,577 $ 670 $ 146 Ratio of expenses to average net assets (h) 1.02% 1.02% 1.42%(i) 1.17%(i) Ratio of net investment income to average net assets (h) 1.80% 1.45% 1.32%(i) 2.03%(i) Portfolio turnover rate 63% 158% 110%(g) 98% - -------------------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31. (b) Class A shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (c) Per share data was calculated using average shares outstanding during the period. (d) Net investment income per share reflects a special dividend. The effect of this dividend amounted to $0.06 per share. (e) Rounds to less than $0.01 per share. (f) Total return at net asset value assuming all distributions reinvested and no initial sales charge or contingent deferred sales charge. (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.
YEAR ENDED AUGUST 31, PERIOD ENDED PERIOD ENDED -------------------------- AUGUST 31, DECEMBER 31, CLASS B SHARES 2005 2004 2003 (a) 2002 (b) - ------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 19.83 $ 19.16 $ 17.52 $ 17.58 - ------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (c) 0.01(d) 0.14 0.07 0.02 Net realized and unrealized gain (loss) on investments and futures contracts 2.14 0.66 1.65 (0.01) ---------- ---------- ----------- ------------ Total from investment operations 2.15 0.80 1.72 0.01 - ------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.26) (0.13) (0.08) (0.07) - ------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $ 21.72 $ 19.83 $ 19.16 $ 17.52 Total return (e) 10.91% 4.17% 9.83%(f) 0.06%(f) - ------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $ 8,149 $ 7,286 $ 3,349 $ 608 Ratio of expenses to average net assets (g) 1.77% 1.77% 2.17%(h) 1.92%(h) Ratio of net investment income to average net assets (g) 1.07% 0.71% 0.59%(h) 1.28%(h) Portfolio turnover rate 63% 158% 110%(f) 98% - -------------------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31. (b) Class B shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (c) Per share data was calculated using average shares outstanding during the period. (d) Net investment income per share reflects a special dividend. The effect of this dividend amounted to $0.06 per share. (e) Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge. (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. 175 FINANCIAL HIGHLIGHTS ___________________________________________________________ COLUMBIA BALANCED FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
YEAR ENDED PERIOD ENDED AUGUST 31, AUGUST 31, CLASS C SHARES 2005 2004 (a) - -------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 19.83 $ 19.59 - -------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (b) 0.01(c) 0.13 Net realized and unrealized gain on investments and futures contracts 2.14 0.23 ---------- ------------ Total from investment operations 2.15 0.36 - -------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.26) (0.12) - -------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $ 21.72 $ 19.83 Total return (d) 10.91% 1.82%(e) - -------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $ 952 $ 730 Ratio of expenses to average net assets (f) 1.77% 1.80%(g) Ratio of net investment income to average net assets (f) 1.06% 0.72%(g) Portfolio turnover rate 63% 158%(e) - --------------------------------------------------------------------------------------------------------------
(a) Class C shares were initially offered on October 13, 2003. 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) Net investment income per share reflects a special dividend. The effect of this dividend amounted to $0.06 per share. (d) Total return at net asset value assuming all distributions reinvested and 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.
YEAR ENDED AUGUST 31, PERIOD ENDED PERIOD ENDED -------------------------- AUGUST 31, DECEMBER 31, CLASS D SHARES 2005 2004 2003 (a) 2002 (b) - ------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 19.82 $ 19.17 $ 17.51 $ 17.58 - ------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (c) 0.01(d) 0.15 0.11 0.02 Net realized and unrealized gain (loss) on investments and futures contracts 2.15 0.65 1.64 (0.02) ---------- ---------- ----------- ------------ Total from investment operations 2.16 0.80 1.75 -- - ------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.26) (0.15) (0.09) (0.07) - ------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $ 21.72 $ 19.82 $ 19.17 $ 17.51 Total return (e) 10.97% 4.14% 10.01%(f) 0.01%(f) - ------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $ 320 $ 361 $ 770 $ 446 Ratio of expenses to average net assets (g) 1.77% 1.77% 1.87%(h) 1.92%(h) Ratio of net investment income to average net assets (g) 1.07% 0.74% 0.89%(h) 1.28%(h) Portfolio turnover rate 63% 158% 110%(f) 98% - -------------------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31. (b) Class D shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (c) Per share data was calculated using average shares outstanding during the period. (d) Net investment income per share reflects a special dividend. The effect of this dividend amounted to $0.06 per share. (e) Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge. (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. 176 FINANCIAL HIGHLIGHTS ___________________________________________________________ COLUMBIA BALANCED FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
YEAR ENDED AUGUST 31, PERIOD ENDED YEAR ENDED DECEMBER 31, ------------------------- AUGUST 31, ------------------------------------------ CLASS Z SHARES 2005 2004 2003 (a) 2002 (b) 2001 2000 - -------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 19.84 $ 19.19 $ 17.51 $ 20.67 $ 22.96 $ 24.72 - -------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income 0.01(c)(d) 0.35(c) 0.24(c) 0.47(c) 0.57(e) 0.67 Net realized and unrealized gain (loss) on investments and futures contracts 2.36 0.66 1.64 (3.13) (2.27)(e) (0.41) --------- --------- ---------- ------------ --------- ----------- Total from investment operations 2.37 1.01 1.88 (2.66) (1.70) 0.26 - -------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.47) (0.36) (0.20) (0.50) (0.59) (0.68) From net realized gains -- -- -- -- -- (1.34) --------- --------- ---------- ------------ --------- ----------- Total distributions (0.47) (0.36) (0.20) (0.50) (0.59) (2.02) - -------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $ 21.74 $ 19.84 $ 19.19 $ 17.51 $ 20.67 $ 22.96 Total return (f) 12.06% 5.27% 10.81%(g) (12.97)% (7.40)% 0.82% - -------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $ 301,109 $ 483,746 $ 640,402 $ 668,290 $ 983,749 $ 1,126,854 Ratio of expenses to average net assets (h) 0.77% 0.77% 0.77%(i) 0.70% 0.67% 0.65% Ratio of net investment income to average net assets (h) 2.11% 1.73% 2.03%(i) 2.50% 2.70%(e) 2.73% Portfolio turnover rate 63% 158% 110%(g) 98% 111% 105% - --------------------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31. (b) On November 1, 2002, the existing Fund shares were renamed Class Z shares. (c) Per share data was calculated using average shares outstanding during the period. (d) Net investment income per share reflects a special dividend. The effect of this dividend amounted to $0.06 per share. (e) 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. (f) Total return at net asset value assuming all distributions reinvested. (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. 177 FINANCIAL HIGHLIGHTS ___________________________________________________________ COLUMBIA SHORT TERM BOND FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
YEAR ENDED AUGUST 31, PERIOD ENDED PERIOD ENDED -------------------------- AUGUST 31, DECEMBER 31, CLASS A SHARES 2005 2004 2003 (a) 2002 (b) - ------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 8.64 $ 8.62 $ 8.67 $ 8.63 - ------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (c) 0.23 0.17 0.10 0.04 Net realized and unrealized gain (loss) on investments and futures contracts (0.07) 0.02 (0.03) 0.04 ---------- ---------- ----------- ------------ Total from investment operations 0.16 0.19 0.07 0.08 - ------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.24) (0.17) (0.12) (0.04) - ------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $ 8.56 $ 8.64 $ 8.62 $ 8.67 Total return (d)(e) 1.83% 2.25% 0.82%(f) 0.94%(f) - ------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $ 17,004 $ 28,146 $ 37,261 $ 5,543 Ratio of expenses to average net assets (g) 0.88% 0.91% 1.00%(h) 1.00%(h) Ratio of net investment income to average net assets (g) 2.71% 2.00% 1.78%(h) 3.53%(h) Reimbursement 0.01% 0.05% 0.05%(h) 0.02%(h) Portfolio turnover rate 46% 77% 137%(f) 182% - -------------------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31. (b) Class A shares were initially offered on November 1, 2002. Per share data and total return 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 and no initial sales charge or contingent deferred sales charge. (e) Had the Investment Advisor not reimbursed a portion of expenses, total return would have been reduced. (f) Not annualized. (g) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (h) Annualized.
YEAR ENDED AUGUST 31, PERIOD ENDED PERIOD ENDED -------------------------- AUGUST 31, DECEMBER 31, CLASS B SHARES 2005 2004 2003 (a) 2002 (b) - ------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 8.64 $ 8.62 $ 8.67 $ 8.63 - ------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (c) 0.17 0.11 0.07 0.03 Net realized and unrealized gain (loss) on investments and futures contracts (0.08) 0.01 (0.04) 0.04 ---------- ---------- ----------- ------------ Total from investment operations 0.09 0.12 0.03 0.07 - ------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.17) (0.10) (0.08) (0.03) - ------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $ 8.56 $ 8.64 $ 8.62 $ 8.67 Total return (d)(e) 1.07% 1.44% 0.35%(f) 0.77%(f) - ------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $ 19,418 $ 25,125 $ 26,965 $ 6,261 Ratio of expenses to average net assets (g) 1.63% 1.66% 1.75%(h) 1.75%(h) Ratio of net investment income to average net assets (g) 1.97% 1.25% 1.16%(h) 2.78%(h) Reimbursement 0.01% 0.08% 0.15%(h) 0.04%(h) Portfolio turnover rate 46% 77% 137%(f) 182% - -------------------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31. (b) Class B shares were initially offered on November 1, 2002. Per share data and total return 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 and no contingent deferred sales charge. (e) Had the Investment Advisor not reimbursed a portion of expenses, total return would have been reduced. (f) Not annualized. (g) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (h) Annualized. 178 FINANCIAL HIGHLIGHTS ___________________________________________________________ COLUMBIA SHORT TERM BOND FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
YEAR ENDED PERIOD ENDED AUGUST 31, AUGUST 31, CLASS C SHARES 2005 2004 (a) - -------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 8.64 $ 8.67 - -------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (b) 0.22 0.15 Net realized and unrealized loss on investments and futures contracts (0.08) (0.04) ---------- ------------ Total from investment operations 0.14 0.11 - -------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.22) (0.14) - -------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $ 8.56 $ 8.64 Total return (c)(d) 1.69% 1.27%(e) - -------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $ 2,978 $ 3,128 Ratio of expenses to average net assets (f) 1.03% 1.06%(g) Ratio of net investment income to average net assets (f) 2.59% 1.88%(g) Reimbursement 0.01% 0.05%(g) Waiver(h) 0.60% 0.60%(g) Portfolio turnover rate 46% 77% - --------------------------------------------------------------------------------------------------------------
(a) Class C shares were initially offered on October 13, 2003. 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 Investment Advisor/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. (h) Amounts represent voluntary waivers of service and distribution fees.
YEAR ENDED AUGUST 31, PERIOD ENDED PERIOD ENDED -------------------------- AUGUST 31, DECEMBER 31, CLASS D SHARES 2005 2004 2003 (a) 2002 (b) - ------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 8.64 $ 8.62 $ 8.67 $ 8.63 - ------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (c) 0.22 0.16 0.10 0.04 Net realized and unrealized gain (loss) on investments and futures contracts (0.08) 0.02 (0.04) 0.04 ---------- ---------- ------------ ------------ Total from investment operations 0.14 0.18 0.06 0.08 - ------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.22) (0.16) (0.11) (0.04) - ------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $ 8.56 $ 8.64 $ 8.62 $ 8.67 Total return (d)(e) 1.69% 2.08% 0.72%(f) 0.88%(f) - ------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $ 5,579 $ 9,809 $ 18,512 $ 5,223 Ratio of expenses to average net assets (g) 1.03% 1.06% 1.15%(h) 1.15%(h) Ratio of net investment income to average net assets (g) 2.56% 1.85% 1.71%(h) 3.38%(h) Reimbursement 0.01% 0.03% 0.18%(h) 0.04%(h) Waiver (i) 0.60% 0.60% 0.60%(h) 0.60%(h) Portfolio turnover rate 46% 77% 137%(f) 182% - -------------------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31. (b) Class D shares were initially offered on November 1, 2002. Per share data and total return 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 and no contingent deferred sales charge. (e) Had the Investment Advisor/Distributor not waived or reimbursed a portion of expenses, total return would have been reduced. (f) Not annualized. (g) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (h) Annualized. (i) Amounts represent voluntary waivers of service and distribution fees. 179 FINANCIAL HIGHLIGHTS ___________________________________________________________ COLUMBIA SHORT TERM BOND FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
YEAR ENDED AUGUST 31, PERIOD ENDED PERIOD ENDED -------------------------- AUGUST 31, DECEMBER 31, CLASS G SHARES 2005 2004 2003 (a) 2002 (b) - ------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 8.64 $ 8.62 $ 8.67 $ 8.63 - ------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (c) 0.18 0.12 0.09 0.03 Net realized and unrealized gain (loss) on investments and futures contracts (0.07) 0.02 (0.05) 0.04 ---------- ------------ ------------ ------------ Total from investment operations 0.11 0.14 0.04 0.07 - ------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.19) (0.12) (0.09) (0.03) - ------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $ 8.56 $ 8.64 $ 8.62 $ 8.67 Total return (d)(e) 1.28% 1.65% 0.47%(f) 0.85%(f) - ------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $ 598 $ 1,056 $ 1,614 $ 1,874 Ratio of expenses to average net assets (g) 1.43% 1.46% 1.55%(h) 1.55%(h) Ratio of net investment income to average net assets (g) 2.14% 1.44% 1.58%(h) 2.98%(h) Reimbursement 0.01% 0.16% 0.10%(h) 0.05%(h) Portfolio turnover rate 46% 77% 137%(f) 182% - -------------------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31. (b) Class G shares were initially offered on November 1, 2002. Per share data and total return 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 and no contingent deferred sales charge. (e) Had the Investment Advisor/Distributor not reimbursed a portion of expenses, total return would have been reduced. (f) Not annualized. (g) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (h) Annualized.
YEAR ENDED AUGUST 31, PERIOD ENDED PERIOD ENDED -------------------------- AUGUST 31, DECEMBER 31, CLASS T SHARES 2005 2004 2003 (a) 2002 (b) - ------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 8.64 $ 8.62 $ 8.67 $ 8.63 - ------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (c) 0.24 0.18 0.13 0.04 Net realized and unrealized gain (loss) on investments and futures contracts (0.08) 0.02 (0.05) 0.04 ---------- ---------- ------------ ------------ Total from investment operations 0.16 0.20 0.08 0.08 - ------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.24) (0.18) (0.13) (0.04) - ------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $ 8.56 $ 8.64 $ 8.62 $ 8.67 Total return (d)(e) 1.94% 2.31% 0.93%(f) 0.95%(f) - ------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $ 17,975 $ 21,160 $ 28,230 $ 30,859 Ratio of expenses to average net assets (g) 0.78% 0.81% 0.90%(h) 0.90%(h) Ratio of net investment income to average net assets (g) 2.98% 2.10% 2.25%(h) 3.63%(h) Reimbursement 0.01% 0.05% 0.04%(h) 0.02%(h) Portfolio turnover rate 46% 77% 137%(f) 182% - -------------------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31. (b) Class T shares were initially offered on November 1, 2002. Per share data and total return 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 and no initial sales charge or contingent deferred sales charge. (e) Had the Investment Advisor/Distributor not reimbursed a portion of expenses, total return would have been reduced. (f) Not annualized. (g) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (h) Annualized. 180 FINANCIAL HIGHLIGHTS ___________________________________________________________ COLUMBIA SHORT TERM BOND FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
YEAR ENDED AUGUST 31, PERIOD ENDED YEAR ENDED DECEMBER 31, --------------------------- AUGUST 31, ------------------------------------------ CLASS Z SHARES 2005 2004 2003 (a) 2002 (b) 2001 2000 - -------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 8.64 $ 8.62 $ 8.67 $ 8.55 $ 8.36 $ 8.20 - -------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income 0.26(c) 0.20(c) 0.14(c) 0.32(c) 0.46(d) 0.42 Net realized and unrealized gain (loss) on investments and futures contracts (0.08) 0.01 (0.05) 0.14 0.21(d) 0.16 ----------- ----------- ----------- ----------- ----------- ----------- Total from investment operations 0.18 0.21 0.09 0.46 0.67 0.58 - -------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.26) (0.19) (0.14) (0.34) (0.46) (0.42) From net realized gains -- -- -- --(e) (0.02) -- ----------- ----------- ----------- ----------- ----------- ----------- Total distributions (0.26) (0.19) (0.14) (0.34) (0.48) (0.42) - -------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $ 8.56 $ 8.64 $ 8.62 $ 8.67 $ 8.55 $ 8.36 Total return (f) 2.08%(g) 2.51%(g) 1.06%(g)(h) 5.56% 8.07%(g) 7.26%(g) - -------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $ 358,964 $ 437,074 $ 436,593 $ 317,588 $ 62,930 $ 35,856 Ratio of expenses to average net assets (i) 0.63% 0.66% 0.66%(j) 0.67% 0.75% 0.88% Ratio of net investment income to average net assets (i) 2.98% 2.27% 2.36%(j) 3.86% 5.29%(d) 5.09% Reimbursement 0.01% 0.05% 0.07%(j) -- 0.16% 0.02% Portfolio turnover rate 46% 77% 137%(h) 182% 137% 147% - --------------------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31. (b) On November 1, 2002, the existing Fund shares were renamed Class Z shares. (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 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 the period prior to December 31, 2001 have not been restated to reflect this change in presentation. (e) Rounds to less than $0.01 per share. (f) Total return at net asset value assuming all distributions reinvested. (g) Had the Investment Advisor not reimbursed a portion of expenses, total return would have been reduced. (h) Not annualized. (i) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (j) Annualized. 181 FINANCIAL HIGHLIGHTS ___________________________________________________________ COLUMBIA FIXED INCOME SECURITIES FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
YEAR ENDED AUGUST 31, PERIOD ENDED PERIOD ENDED ---------------------------- AUGUST 31, DECEMBER 31, CLASS A SHARES 2005 2004 2003 (a) 2002 (b) - --------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 13.49 $ 13.34 $ 13.52 $ 13.42 - --------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (c) 0.50 0.50 0.26 0.11 Net realized and unrealized gain (loss) on investments (0.02) 0.17 (0.14) 0.08 ---------- ---------- ---------- ---------- Total from investment operations 0.48 0.67 0.12 0.19 - --------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.53) (0.52) (0.30) (0.09) From net realized gains (0.14) -- -- -- ---------- ---------- ---------- ---------- Total distributions (0.67) (0.52) (0.30) (0.09) - --------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $ 13.30 $ 13.49 $ 13.34 $ 13.52 Total return (d) 3.63%(e) 5.13% 0.84%(f) 1.41%(f) - --------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $ 13,260 $ 10,707 $ 7,503 $ 945 Ratio of expenses to average net assets (g) 1.08% 1.05% 1.44%(h) 0.92%(h) Ratio of net investment income to average net assets (g) 3.74% 3.70% 2.84%(h) 4.78%(h) Portfolio turnover rate 47% 124% 161%(f) 103% - ---------------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31. (b) Class A shares were initially offered on November 1, 2002. Per share data and total return 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 and no initial sales charge or contingent deferred sales charge. (e) Total return includes a realized gain from a security purchased in violation of investment restrictions. The security was sold for a gain that had an impact of less than 0.01% on the Fund's total return. (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.
YEAR ENDED AUGUST 31, PERIOD ENDED PERIOD ENDED -------------------------- AUGUST 31, DECEMBER 31, CLASS B SHARES 2005 2004 2003 (a) 2002 (b) - --------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 13.49 $ 13.34 $ 13.52 $ 13.42 - --------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (c) 0.40 0.40 0.20 0.09 Net realized and unrealized gain (loss) on investments (0.02) 0.17 (0.15) 0.08 --------- --------- --------- --------- Total from investment operations 0.38 0.57 0.05 0.17 - --------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.43) (0.42) (0.23) (0.07) From net realized gains (0.14) -- -- -- --------- --------- --------- --------- Total distributions (0.57) (0.42) (0.23) (0.07) - --------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $ 13.30 $ 13.49 $ 13.34 $ 13.52 Total return (d) 2.86%(e) 4.33% 0.34%(f) 1.27%(f) - --------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $ 4,114 $ 4,334 $ 4,410 $ 1,466 Ratio of expenses to average net assets (g) 1.83% 1.82% 2.10%(h) 1.71%(h) Ratio of net investment income to average net assets (g) 2.98% 2.94% 2.22%(h) 3.99%(h) Portfolio turnover rate 47% 124% 161%(f) 103% - ---------------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31. (b) Class B shares were initially offered on November 1, 2002. Per share data and total return 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 and no contingent deferred sales charge. (e) Total return includes a realized gain from a security purchased in violation of investment restrictions. The security was sold for a gain that had an impact of less than 0.01% on the Fund's total return. (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. 182 FINANCIAL HIGHLIGHTS ___________________________________________________________ COLUMBIA FIXED INCOME SECURITIES FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
YEAR ENDED PERIOD ENDED AUGUST 31, AUGUST 31, CLASS C SHARES 2005 2004 (a) - ---------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 13.49 $ 13.50 - ---------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (b) 0.42 0.37 Net realized and unrealized gain (loss) on investments (0.02) 0.02 ------- ------- Total from investment operations 0.40 0.39 - ---------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.45) (0.40) From net realized gains (0.14) -- ------- ------- Total distributions (0.59) (0.40) - ---------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $ 13.30 $ 13.49 Total return (c)(d) 3.01%(e) 2.94%(f) - ---------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $ 234 $ 158 Ratio of expenses to average net assets (g) 1.68% 1.64%(h) Ratio of net investment income to average net assets (g) 3.13% 3.09%(h) Waiver (i) 0.15% 0.15%(h) Portfolio turnover rate 47% 124% - ----------------------------------------------------------------------------------------
(a) Class C shares were initially offered on October 13, 2003. 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 Distributor not waived a portion of expenses, total return would have been reduced. (e) Total return includes a realized gain from a security purchased in violation of investment restrictions. The security was sold for a gain that had an impact of less than 0.01% on the Fund's total return. (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. (i) Amounts represent voluntary waiver of service and distribution fees.
YEAR ENDED AUGUST 31, PERIOD ENDED PERIOD ENDED -------------------------- AUGUST 31, DECEMBER 31, CLASS D SHARES 2005 2004 2003 (a) 2002 (b) - --------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 13.49 $ 13.34 $ 13.52 $ 13.42 - --------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (c) 0.42 0.42 0.22 0.09 Net realized and unrealized gain (loss) on investments (0.02) 0.17 (0.15) 0.08 --------- --------- --------- --------- Total from investment operations 0.40 0.59 0.07 0.17 - --------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.45) (0.44) (0.25) (0.07) From net realized gains (0.14) -- -- -- --------- --------- --------- --------- Total distributions (0.59) (0.44) (0.25) (0.07) - --------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $ 13.30 $ 13.49 $ 13.34 $ 13.52 Total return (d)(e) 3.01%(f) 4.51% 0.51%(g) 1.30%(g) - --------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $ 1,274 $ 1,745 $ 2,632 $ 427 Ratio of expenses to average net assets (h) 1.68% 1.65% 1.79%(i) 1.58%(i) Ratio of net investment income to average net assets (h) 3.13% 3.11% 2.44%(i) 4.12%(i) Waiver (j) 0.15% 0.15% 0.15%(i) 0.15%(i) Portfolio turnover rate 47% 124% 161%(g) 103% - ---------------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31. (b) Class D shares were initially offered on November 1, 2002. Per share data and total return 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 and no contingent deferred sales charge. (e) Had the Distributor not waived a portion of expenses, total return would have been reduced. (f) Total return includes a realized gain from a security purchased in violation of investment restrictions. The security was sold for a gain that had an impact of less than 0.01% on the Fund's total return. (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. (j) Amounts represent voluntary waiver of service and distribution fees. 183 FINANCIAL HIGHLIGHTS ___________________________________________________________ COLUMBIA FIXED INCOME SECURITIES FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
YEAR ENDED AUGUST 31, PERIOD ENDED YEAR ENDED DECEMBER 31, --------------------------- AUGUST 31, ------------------------------------------ CLASS Z SHARES 2005 2004 2003 (a) 2002 (b) 2001 2000 - -------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 13.49 $ 13.34 $ 13.52 $ 13.22 $ 12.97 $ 12.44 - -------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income 0.53(c) 0.53(c) 0.33(c) 0.67(c) 0.77(d) 0.82 Net realized and unrealized gain (loss) on investments (0.03) 0.18 (0.16) 0.31 0.26(d) 0.53 ----------- ----------- ----------- ----------- ----------- ----------- Total from investment operations 0.50 0.71 0.17 0.98 1.03 1.35 - -------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.55) (0.56) (0.35) (0.68) (0.78) (0.82) From net realized gains (0.14) -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- ----------- Total distributions (0.69) (0.56) (0.35) (0.68) (0.78) (0.82) - -------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $ 13.30 $ 13.49 $ 13.34 $ 13.52 $ 13.22 $ 12.97 Total return (e) 3.83%(f) 5.40% 1.26%(g) 7.65% 8.13% 11.27% - -------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $ 230,711 $ 324,325 $ 506,046 $ 547,524 $ 465,743 $ 378,799 Ratio of expenses to average net assets (h) 0.83% 0.80% 0.77%(i) 0.67% 0.66% 0.66% Ratio of net investment income to average net assets (h) 3.98% 3.96% 3.66%(i) 5.03% 5.83%(d) 6.53% Portfolio turnover rate 47% 124% 161%(g) 103% 110% 105% - --------------------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31. (b) On November 1, 2002, the existing Fund shares were renamed Class Z shares. (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 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 the period 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) Total return includes a realized gain from a security purchased in violation of investment restrictions. The security was sold for a gain that had an impact of less than 0.01% on the Fund's total return. (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. 184 FINANCIAL HIGHLIGHTS ___________________________________________________________ COLUMBIA OREGON INTERMEDIATE MUNICIPAL BOND FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
YEAR ENDED AUGUST 31, PERIOD ENDED PERIOD ENDED ----------------------- AUGUST 31, DECEMBER 31, CLASS A SHARES 2005 2004 2003 (a) 2002 (b) - ------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 12.45 $ 12.25 $ 12.50 $ 12.52 - ------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (c) 0.46 0.46 0.29 0.08 Net realized and unrealized gain (loss) on investments 0.03 0.34 (0.22) 0.07 --------- --------- --------- --------- Total from investment operations 0.49 0.80 0.07 0.15 - ------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.45) (0.46) (0.31) (0.08) From net realized gains (0.04) (0.14) (0.01) (0.09) --------- --------- --------- --------- Total distributions (0.49) (0.60) (0.32) (0.17) - ------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $ 12.45 $ 12.45 $ 12.25 $ 12.50 Total return (d) 4.05% 6.68% 0.56%(e) 1.19%(e) - ------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $ 4,300 $ 3,680 $ 2,138 $ 477 Ratio of expenses to average net assets (f) 0.89% 0.92% 1.16%(g) 0.92%(g) Ratio of net investment income to average net assets (f) 3.71% 3.73% 3.52%(g) 4.11%(g) Portfolio turnover rate 9% 11% 10%(e) 21% - -------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31. (b) Class A shares were initially offered on November 1, 2002. Per share data and total return 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 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.
YEAR ENDED AUGUST 31, PERIOD ENDED PERIOD ENDED ----------------------- AUGUST 31, DECEMBER 31, CLASS B SHARES 2005 2004 2003 (a) 2002 (b) - -------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 12.45 $ 12.25 $ 12.50 $ 12.52 - -------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (c) 0.37 0.37 0.24 0.06 Net realized and unrealized gain (loss) on investments 0.03 0.34 (0.23) 0.08 --------- --------- ----------- ------------ Total from investment operations 0.40 0.71 0.01 0.14 - -------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.36) (0.37) (0.25) (0.07) From net realized gains (0.04) (0.14) (0.01) (0.09) --------- --------- ----------- ------------ Total distributions (0.40) (0.51) (0.26) (0.16) - -------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $ 12.45 $ 12.45 $ 12.25 $ 12.50 Total return (d) 3.26% 5.87% 0.05%(e) 1.10%(e) - -------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $ 1,226 $ 1,190 $ 999 $ 373 Ratio of expenses to average net assets (f) 1.64% 1.68% 1.86%(g) 1.67%(g) Ratio of net investment income to average net assets (f) 2.96% 2.97% 2.83%(g) 3.36%(g) Portfolio turnover rate 9% 11% 10%(e) 21% - --------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31. (b) Class B shares were initially offered on November 1, 2002. Per share data and total return 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 and 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. 185 FINANCIAL HIGHLIGHTS ___________________________________________________________ COLUMBIA OREGON INTERMEDIATE MUNICIPAL BOND FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
YEAR ENDED PERIOD ENDED AUGUST 31, AUGUST 31, CLASS C SHARES 2005 2004 (a) - ------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 12.45 $ 12.42 - ------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (b) 0.41 0.36 Net realized and unrealized gain on investments 0.03 0.18 ------- ------- Total from investment operations 0.44 0.54 - ------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.40) (0.37) From net realized gains (0.04) (0.14) ------- ------- Total distributions (0.44) (0.51) - ------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $ 12.45 $ 12.45 Total return (c)(d) 3.64% 4.41%(e) - ------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $ 601 $ 278 Ratio of expenses to average net assets (f) 1.29% 1.30%(g) Ratio of net investment income to average net assets (f) 3.31% 3.28%(g) Waiver (h) 0.35% 0.35%(g) Portfolio turnover rate 9% 11% - -------------------------------------------------------------------------------------
(a) Class C shares were initially offered on October 13, 2003. 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 Distributor not waived 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. (h) Amounts represent voluntary waivers of service and distribution fees.
YEAR ENDED AUGUST 31, PERIOD ENDED PERIOD ENDED --------------------- AUGUST 31, DECEMBER 31, CLASS D SHARES 2005 2004 2003 (a) 2002 (b) - -------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 12.45 $ 12.25 $ 12.50 $ 12.52 - -------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (c) 0.41 0.41 0.27 0.07 Net realized and unrealized gain (loss) on investments 0.03 0.34 (0.23) 0.07 ------- ------- ------- ------- Total from investment operations 0.44 0.75 0.04 0.14 - -------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.40) (0.41) (0.28) (0.07) From net realized gains (0.04) (0.14) (0.01) (0.09) ------- ------- ------- ------- Total distributions (0.44) (0.55) (0.29) (0.16) - -------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $ 12.45 $ 12.45 $ 12.25 $ 12.50 Total return (d)(e) 3.62% 6.25% 0.32%(f) 1.14%(f) - -------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $ 764 $ 790 $ 700 $ 488 Ratio of expenses to average net assets (g) 1.29% 1.33% 1.43%(h) 1.32%(h) Ratio of net investment income to average net assets (g) 3.31% 3.34% 3.30%(h) 3.71%(h) Waiver (i) 0.35% 0.35% 0.35%(h) 0.35%(h) Portfolio turnover rate 9% 11% 10%(f) 21% - --------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31. (b) Class D shares were initially offered on November 1, 2002. Per share data and total return 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 and no contingent deferred sales charge. (e) Had the Distributor not waived a portion of expenses, total return would have been reduced. (f) Not annualized. (g) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (h) Annualized. (i) Amounts represent voluntary waivers of service and distribution fees. 186 FINANCIAL HIGHLIGHTS ___________________________________________________________ COLUMBIA OREGON INTERMEDIATE MUNICIPAL BOND FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
YEAR ENDED AUGUST 31, PERIOD ENDED YEAR ENDED DECEMBER 31, --------------------------- AUGUST 31, ------------------------------------------ CLASS Z SHARES 2005 2004 2003 (a) 2002 (b) 2001 2000 - -------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 12.45 $ 12.25 $ 12.50 $ 12.08 $ 12.13 $ 11.56 - -------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income 0.49(c) 0.50(c) 0.34(c) 0.55(c) 0.57(d) 0.58 Net realized and unrealized gain (loss) on investments 0.03 0.34 (0.23) 0.54 (0.02)(d) 0.58 ----------- ----------- ----------- ----------- ----------- ----------- Total from investment operations 0.52 0.84 0.11 1.09 0.55 1.16 - -------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.48) (0.50) (0.35) (0.55) (0.57) (0.58) From net realized gains (0.04) (0.14) (0.01) (0.12) (0.03) (0.01) ----------- ----------- ----------- ----------- ----------- ----------- Total distributions (0.52) (0.64) (0.36) (0.67) (0.60) (0.59) - -------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $ 12.45 $ 12.45 $ 12.25 $ 12.50 $ 12.08 $ 12.13 Total return (e) 4.31% 6.97% 0.83%(f) 9.24% 4.55% 10.28% - -------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $ 410,706 $ 434,509 $ 485,427 $ 508,865 $ 491,638 $ 436,544 Ratio of expenses to average net assets (g) 0.64% 0.65% 0.68%(h) 0.58% 0.57% 0.58% Ratio of net investment income to average net assets (g) 3.96% 4.03% 4.13%(h) 4.45% 4.64%(d) 4.92% Portfolio turnover rate 9% 11% 10%(f) 21% 14% 22% - --------------------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31. (b) On November 1, 2002, the existing Fund shares were renamed Class Z shares. (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 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 period 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) 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. 187 FINANCIAL HIGHLIGHTS ___________________________________________________________ COLUMBIA CONSERVATIVE HIGH YIELD FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
YEAR ENDED AUGUST 31, PERIOD ENDED PERIOD ENDED ------------------------- AUGUST 31, DECEMBER 31, CLASS A SHARES 2005 2004 2003 (a) 2002 (b) - ----------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 8.69 $ 8.49 $ 8.37 $ 8.17 - ----------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (c) 0.48 0.50 0.33 0.09 Net realized and unrealized gain (loss) on investments (0.03) 0.24 0.15 0.20 ----------- ----------- ----------- ----------- Total from investment operations 0.45 0.74 0.48 0.29 - ----------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.52) (0.54) (0.36) (0.09) - ----------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $ 8.62 $ 8.69 $ 8.49 $ 8.37 Total return (d) 5.31% 8.90% 5.81%(e) 3.50%(e) - ----------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $ 321,402 $ 335,841 $ 193,267 $ 33,992 Ratio of expenses to average net assets (f) 0.95% 1.01% 1.07%(g) 1.15%(g) Ratio of net investment income to average net assets (f) 5.55% 5.74% 5.82%(g) 6.46%(g) Portfolio turnover rate 40% 41% 38%(e) 42% - -----------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31. (b) Class A shares were initially offered on November 1, 2002. Per share data and total return 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 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.
YEAR ENDED AUGUST 31, PERIOD ENDED PERIOD ENDED ------------------------- AUGUST 31, DECEMBER 31, CLASS B SHARES 2005 2004 2003 (a) 2002 (b) - ----------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 8.69 $ 8.49 $ 8.37 $ 8.17 - ----------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (c) 0.42 0.43 0.28 0.07 Net realized and unrealized gain (loss) on investments (0.03) 0.24 0.15 0.20 ----------- ----------- ----------- ----------- Total from investment operations 0.39 0.67 0.43 0.27 - ----------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.46) (0.47) (0.31) (0.07) - ----------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $ 8.62 $ 8.69 $ 8.49 $ 8.37 Total return (d) 4.53% 8.07% 5.20%(e) 3.33%(e) - ----------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $ 89,101 $ 102,038 $ 89,950 $ 16,701 Ratio of expenses to average net assets (f) 1.70% 1.77% 1.94%(g) 1.90%(g) Ratio of net investment income to average net assets (f) 4.80% 4.97% 4.93%(g) 5.71%(g) Portfolio turnover rate 40% 41% 38%(e) 42% - -----------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31. (b) Class B shares were initially offered on November 1, 2002. Per share data and total return 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 and 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. 188 FINANCIAL HIGHLIGHTS ___________________________________________________________ COLUMBIA CONSERVATIVE HIGH YIELD FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
YEAR ENDED PERIOD ENDED AUGUST 31, AUGUST 31, CLASS C SHARES 2005 2004 (a) - ---------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 8.69 $ 8.64 - ----------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (b) 0.43 0.39 Net realized and unrealized gain (loss) on investments (0.03) 0.09 ---------- ----------- Total from investment operations 0.40 0.48 - ----------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.47) (0.43) - ----------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $ 8.62 $ 8.69 Total return (c)(d) 4.69% 5.65%(e) - ----------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $ 18,002 $ 20,126 Ratio of expenses to average net assets (f) 1.55% 1.61%(g) Ratio of net investment income to average net assets (f) 4.95% 5.03%(g) Waiver (h) 0.15% 0.15%(g) Portfolio turnover rate 40% 41% - -----------------------------------------------------------------------------------
(a) Class C shares were initially offered on October 13, 2003. 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 Distributor not waived 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. (h) Amounts represent voluntary waivers of service and distribution fees.
YEAR ENDED AUGUST 31, PERIOD ENDED PERIOD ENDED ------------------------- AUGUST 31, DECEMBER 31 , CLASS D SHARES 2005 2004 2003 (a) 2002 (b) - ----------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 8.69 $ 8.49 $ 8.37 $ 8.17 - ----------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (c) 0.43 0.44 0.29 0.07 Net realized and unrealized gain (loss) on investments (0.03) 0.24 0.15 0.20 ----------- ----------- ----------- ----------- Total from investment operations 0.40 0.68 0.44 0.27 - ----------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.47) (0.48) (0.32) (0.07) - ----------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $ 8.62 $ 8.69 $ 8.49 $ 8.37 Total return (d)(e) 4.69% 8.23% 5.35%(f) 3.35%(f) - ----------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $ 58,739 $ 86,854 $ 103,559 $ 18,035 Ratio of expenses to average net assets (g) 1.55% 1.62% 1.73%(h) 1.75%(h) Ratio of net investment income to average net assets (g) 4.95% 5.12% 5.12%(h) 5.86%(h) Waiver (i) 0.15% 0.15% 0.15%(h) 0.15%(h) Portfolio turnover rate 40% 41% 38%(f) 42% - -----------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31. (b) Class D shares were initially offered on November 1, 2002. Per share data and total return 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 and no contingent deferred sales charge. (e) Had the Distributor not waived a portion of expenses, total return would have been reduced. (f) Not annualized. (g) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (h) Annualized. (i) Amounts represent voluntary waivers of service and distribution fees. 189 FINANCIAL HIGHLIGHTS ___________________________________________________________ COLUMBIA CONSERVATIVE HIGH YIELD FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
YEAR ENDED AUGUST 31, PERIOD ENDED YEAR ENDED DECEMBER 31, --------------------------- AUGUST 31, ---------------------------------------- CLASS Z SHARES 2005 2004 2003 (a) 2002 (b) 2001 2000 - -------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 8.69 $ 8.49 $ 8.37 $ 8.87 $ 8.98 $ 9.32 - -------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income 0.50(c) 0.52(c) 0.35(c) 0.57(c) 0.67(d) 0.75 Net realized and unrealized gain (loss) on investments (0.03) 0.24 0.15 (0.48) (0.09)(d) (0.34) ----------- ----------- ----------- --------- --------- -------- Total from investment operations 0.47 0.76 0.50 0.09 0.58 0.41 - -------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.54) (0.56) (0.38) (0.59) (0.69) (0.75) - -------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $ 8.62 $ 8.69 $ 8.49 $ 8.37 $ 8.87 $ 8.98 Total return (e) 5.54% 9.16% 6.04%(f) 1.17% 6.63% 4.61% - -------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $ 1,073,894 $ 1,186,454 $ 1,197,340 $ 702,785 $ 238,994 $ 97,575 Ratio of expenses to average net assets (g) 0.70% 0.77% 0.82%(h) 0.77% 0.85% 0.93% Ratio of net investment income to average net assets (g) 5.80% 5.97% 6.19%(h) 6.84% 7.47%(d) 8.22% Portfolio turnover rate 40% 41% 38%(f) 42% 69% 50% - --------------------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31. (b) On November 1, 2002, the existing Fund shares were renamed Class Z shares. (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 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 the period 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) 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. 190 FINANCIAL HIGHLIGHTS ___________________________________________________________ COLUMBIA DAILY INCOME COMPANY FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
YEAR ENDED AUGUST 31, PERIOD ENDED YEAR ENDED DECEMBER 31, ------------------------- AUGUST 31, ------------------------------------------ CLASS Z SHARES 2005 2004 2003 (a) 2002 (b) 2001 2000 - -------------------------------------------------------------------------------------------------------------------------------- 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 0.018(c) 0.004(c) 0.004(c) 0.012(c) 0.036 0.058 - -------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.018) (0.004) (0.004) (0.012) (0.036) (0.058) - -------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 Total return (d) 1.77% 0.36% 0.40%(e) 1.17% 3.70% 6.00% - -------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $ 487,824 $ 661,114 $ 898,164 $ 1,136,075 $ 1,253,535 $ 1,198,151 Ratio of expenses to average net assets (f) 0.79% 0.71% 0.69%(g) 0.60% 0.60% 0.60% Ratio of net investment income to average net assets (f) 1.75% 0.38% 0.53%(g) 1.16% 3.61% 5.82% - --------------------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31. (b) On November 1, 2002, the existing Fund shares were renamed Class Z shares. (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) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (g) Annualized. 191 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ______________________________________________ COLUMBIA FUNDS TO THE BOARD OF DIRECTORS AND THE SHAREHOLDERS OF: COLUMBIA INTERNATIONAL STOCK FUND COLUMBIA MID CAP GROWTH FUND, INC. COLUMBIA SMALL CAP GROWTH FUND I (FORMERLY COLUMBIA SMALL CAP GROWTH FUND, INC.) COLUMBIA REAL ESTATE EQUITY FUND, INC. COLUMBIA TECHNOLOGY FUND, INC. COLUMBIA STRATEGIC INVESTOR FUND, INC. COLUMBIA BALANCED FUND, INC. COLUMBIA SHORT TERM BOND FUND, INC. COLUMBIA FIXED INCOME SECURITIES FUND, INC. COLUMBIA OREGON INTERMEDIATE MUNICIPAL BOND FUND (FORMERLY COLUMBIA OREGON MUNICIPAL BOND FUND, INC.) COLUMBIA CONSERVATIVE HIGH YIELD FUND (FORMERLY HIGH YIELD FUND, INC.) COLUMBIA DAILY INCOME COMPANY In our opinion, the accompanying statements of assets and liabilities, including the investment portfolios, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of the above Funds (the "Funds") at August 31, 2005, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and their financial highlights for the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Funds' management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at August 31, 2005 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion. As described in Note 14 to the financial statements, upon approval of the shareholders of Columbia Short Term Bond Fund and Columbia Fixed Income Securities Fund on September 16, 2005 and September 28, 2005, respectively, Columbia Short Term Bond Fund merged with Nations Short-Term Income Fund and ceased operations on September 23, 2005 and Columbia Fixed Income Securities Fund merged with Columbia Total Return Bond Fund and ceased operations on October 7, 2005. PricewaterhouseCoopers LLP Boston, Massachusetts October 26, 2005 192 UNAUDITED INFORMATION __________________________________________________________ COLUMBIA FUNDS FEDERAL INCOME TAX INFORMATION COLUMBIA INTERNATIONAL STOCK FUND Foreign taxes paid during the fiscal year ended August 31, 2005, amounting to $1,939,178 ($0.03 per share) are expected to be passed through to shareholders as 100.00% allowable foreign tax credits on Form 1099-DIV for the year ending December 31, 2005. For the fiscal year ended August 31, 2005, the Fund designates long-term capital gains of $13,876,238. For non-corporate shareholders 100.00% or the maximum amount allowable under the Jobs and Growth Tax Relief Reconciliation Act of 2003, of income earned by the Fund for the period September 1, 2004 to August 31, 2005 may represent qualified dividend income. Final information will be provided in your 2005 1099-Div Form. COLUMBIA MID CAP GROWTH FUND For the fiscal year ended August 31, 2005, the Fund designates long-term capital gains of $9,566,493. COLUMBIA SMALL CAP GROWTH FUND I For the fiscal year ended August 31, 2005, the Fund designates long-term capital gains of $2,509,028. COLUMBIA TECHNOLOGY FUND For the fiscal year ended August 31, 2005, the Fund designates long-term capital gains of $2,018,570. COLUMBIA STRATEGIC INVESTOR FUND For the fiscal year ended August 31, 2005, the Fund designates long-term capital gains of $20,966,017. For non-corporate shareholders 64.75% or the maximum amount allowable under the Jobs and Growth Tax Relief Reconciliation Act of 2003, of income earned by the Fund for the period September 1, 2004 to August 31, 2005 may represent qualified dividend income. Final information will be provided in your 2005 1099-Div Form. 55.95% of the ordinary income distributed by the Fund, for the year ended August 31, 2005, qualifies for the corporate dividends received deduction. COLUMBIA BALANCED FUND For non-corporate shareholders 44.44% or the maximum amount allowable under the Jobs and Growth Tax Relief Reconciliation Act of 2003, of income earned by the Fund for the period September 1, 2004 to August 31, 2005 may represent qualified dividend income. Final information will be provided in your 2005 1099-Div Form. 42.42% of the ordinary income distributed by the Fund, for the year ended August 31, 2005, qualifies for the corporate dividends received deduction. COLUMBIA FIXED INCOME SECURITIES FUND. For the fiscal year ended August 31, 2005, the Fund designates long-term capital gains of $1,080,656. COLUMBIA OREGON INTERMEDIATE MUNICIPAL BOND FUND 100.00% of the distributions from net investment income will be treated as exempt income for federal income tax purposes. 193 TRUSTEES _______________________________________________________________________ COLUMBIA FUNDS The Trustees/Directors serve terms of indefinite duration. The names, addresses and ages of the Trustees/Directors and officers of the Funds in the Columbia Funds Complex, the year each was first elected or appointed to office, their principal business occupations during at least the last five years, the number of portfolios overseen by each Trustee/Director and other directorships they hold are shown below. Each officer listed below serves as an officer of each Fund in the Columbia Funds Complex. NAME, ADDRESS AND AGE, POSITION WITH FUNDS, PRINCIPAL OCCUPATION(S) DURING PAST YEAR FIRST ELECTED OR FIVE YEARS, NUMBER OF PORTFOLIOS IN APPOINTED TO OFFICE (1) COLUMBIA FUNDS COMPLEX OVERSEEN BY TRUSTEE/DIRECTOR, OTHER DIRECTORSHIPS HELD DISINTERESTED TRUSTEES DOUGLAS A. HACKER (Age 49) Executive Vice President-Strategy P.O. Box 66100 of United Airlines (airline) since Chicago, IL 60666 December, 2002 (formerly President Trustee (since 1996) of UAL Loyalty Services (airline) from September, 2001 to December, 2002; Executive Vice President and Chief Financial Officer of United Airlines from July, 1999 to September, 2001; Senior Vice President-Finance from March, 1993 to July, 1999). Oversees 90, Nash Finch Company (food distributor) ----------------------------------- JANET LANGFORD KELLY (Age 47) Partner, Zelle, Hofmann, Voelbel, 9534 W. Gull Lake Drive Mason & Gette LLP (law firm) since Richland, MI 49083-8530 March, 2005; Adjunct Professor of Trustee (since 1996) Law, Northwestern University, since September, 2004 (formerly Chief Administrative Officer and Senior Vice President, Kmart Holding Corporation (consumer goods), from September, 2003 to March, 2004; Executive Vice President-Corporate Development and Administration, General Counsel and Secretary, Kellogg Company (food manufacturer), from September, 1999 to August, 2003; Senior Vice President, Secretary and General Counsel, Sara Lee Corporation (branded, packaged, consumer-products manufacturer) from January, 1995 to September, 1999). Oversees 90, None ----------------------------------- RICHARD W. LOWRY (Age 69) Private Investor since August, 1987 10701 Charleston Drive (formerly Chairman and Chief Vero Beach, FL 32963 Executive Officer, U.S. Plywood Trustee (since 1995) Corporation (building products manufacturer)). Oversees 92 (3), None ----------------------------------- CHARLES R.NELSON (Age 62) Professor of Economics,University Department of Economics of Washington,since January,1976; University of Washington Ford and Louisa Van Voorhis Seattle,WA 98195 Professor of Political Trustee (since 1981) Economy,University of Washington,since September,1993 (formerly Director, Institute for Economic Research,University of Washington from September,2001 to June,2003) Adjunct Professor of Statistics,University of Washington,since September,1980;Associate Editor, Journal of Money Credit and Banking,since September,1993; consultant on econometric and statistical matters.Oversees 90,None ----------------------------------- JOHN J. NEUHAUSER (Age 63) Academic Vice President and Dean of 84 College Road Faculties since August, 1999, Chestnut Hill, MA 02467-3838 Boston College (formerly Dean Trustee (since 1985) Boston College School of Management from September, 1977 to August, 1999). Oversees 92 (3), Saucony, Inc. (athletic footwear) ----------------------------------- 194 ________________________________________________________________________________ COLUMBIA FUNDS NAME, ADDRESS AND AGE, POSITION WITH PRINCIPAL OCCUPATION(S) DURING PAST FUNDS,YEAR FIRST ELECTED FIVE YEARS, NUMBER OF PORTFOLIOS IN OR APPOINTED TO OFFICE (1) COLUMBIA FUNDS COMPLEX OVERSEEN BY TRUSTEE/DIRECTOR, OTHER DIRECTORSHIPS HELD DISINTERESTED TRUSTEES PATRICK J. SIMPSON (Age 61) Partner, Perkins Coie L.L.P. 1120 N.W. Couch Street (law firm). Oversees 90, None Tenth Floor Portland, OR 97209-4128 Trustee (since 2000) ----------------------------------- THOMAS E. STITZEL (Age 69) Business Consultant since 1999 2208 Tawny Woods Place (formerly Professor of Finance from Boise, ID 83706 1975 to 1999, College of Business, Trustee (since 1998) Boise State University); Chartered Financial Analyst. Oversees 90, None ----------------------------------- THOMAS C. THEOBALD (Age 68) Partner and Senior Advisor, Chicago 8 Sound Shore Drive, Growth Partners (private equity Suite 285 investing) since September, 2004 Greenwich, CT 06830 (formerly Managing Director, Trustee and Chairman of the Board(4) William Blair Capital Partners (since 1996) (private equity investing) from September, 1994 to September, 2004). Oversees 90, Anixter International (network support equipment distributor); Ventas, Inc. (real estate investment trust); Jones Lang LaSalle (real estate management services) and Ambac Financial Group (financial guaranty insurance) ----------------------------------- ANNE-LEE VERVILLE (Age 60) Retired since 1997 (formerly 359 Stickney Hill Road General Manager, Global Education Hopkinton, NH 03229 Industry, IBM Corporation (computer Trustee (since 1998) and technology) from 1994 to 1997). Oversees 90, Chairman of the Board of Directors, Enesco Group, Inc. (designer, importer and distributor of giftware and collectibles) ----------------------------------- RICHARD L. WOOLWORTH (Age 64) Retired since December 2003 100 S.W. Market Street #1500 (formerly Chairman and Chief Portland, OR 97207 Executive Officer, The Regence Trustee (since 1991) Group (regional health insurer); Chairman and Chief Executive Officer, BlueCross BlueShield of Oregon; Certified Public Accountant, Arthur Young & Company). Oversees 90, Northwest Natural Gas Co. (natural gas service provider) ----------------------------------- INTERESTED TRUSTEE WILLIAM E. MAYER (2) (Age 65) Partner, Park Avenue Equity 399 Park Avenue Partners (private equity) since Suite 3204 February, 1999 (formerly Partner, New York, NY 10022 Development Capital LLC from Trustee (since 1994) November 1996, to February, 1999). Oversees 92 (3), Lee Enterprises (print media), WR Hambrecht + Co. (financial service provider); Reader's Digest (publishing); OPENFIELD Solutions (retail industry technology provider) ----------------------------------- (1) In December 2000, the boards of each of the former Liberty Funds and former Stein Roe Funds were combined into one board of trustees responsible for the oversight of both fund groups (collectively, the "Liberty Board"). In October 2003, the trustees on the Liberty Board were elected to the boards of the Columbia Funds (the "Columbia Board") and of the CMG Fund Trust (the "CMG Funds Board"); simultaneous with that election, Patrick J. Simpson and Richard L. Woolworth, who had been directors on the Columbia Board and trustees on the CMG Funds Board, were appointed to serve as trustees of the Liberty Board. The date shown is the earliest date on which a trustee/director was elected or appointed to the board of a Fund in the Columbia Funds Complex. (2) Mr. Mayer is an "interested person" (as defined in the Investment Company Act of 1940 (1940 Act)) by reason of his affiliation with WR Hambrecht + Co. (3) Messrs. Lowry, Neuhauser and Mayer also serve as directors/trustees of the Liberty All-Star Funds, currently consisting of 3 funds, which are advised by an affiliate of the Advisor. (4) Mr. Theobald was appointed as Chairman of the Board effective December 10, 2003. The Statement of Additional Information Includes additional information about the Trustees of the Funds and is available, without charge, upon request by calling 800-426-3750. 195 OFFICERS _______________________________________________________________________ COLUMBIA FUNDS NAME, ADDRESS AND AGE, POSITION WITH COLUMBIA FUNDS, YEAR FIRST ELECTED OR PRINCIPAL OCCUPATION(S) DURING PAST APPOINTED TO OFFICE FIVE YEARS CHRISTOPHER L. WILSON (Age 48) Head of Mutual Funds since August, One Financial Center 2004 and Managing Director of the Boston, MA 02111 Advisor since January, 2005; President (since 2004) President of the Columbia Funds, Liberty Funds and Stein Roe Funds since October, 2004; President and Chief Executive Officer of the Nations Funds since January, 2005; President of the Galaxy Funds since April 2005; Director of Bank of America Global Liquidity Funds, plc since May 2005; Director of Banc of America Capital Management (Ireland), Limited since May 2005; Director of FIM Funding, Inc. since January, 2005; Senior Vice President of Columbia Management Distributor, Inc. since January, 2005; Director of Columbia Management Services, Inc. since January, 2005 (formerly Senior Vice President of Columbia Management from January, 2005 to August, 2005; Senior Vice President of BACAP Distributors LLC from January 2005 to July 2005; President and Chief Executive Officer, CDC IXIS Asset Management Services, Inc. from September, 1998 to August, 2004). ----------------------------------- J. KEVIN CONNAUGHTON (Age 41) Treasurer of the Columbia Funds One Financial Center since October, 2003 and of the Boston, MA 02111 Liberty Funds, Stein Roe Funds and Treasurer (since 2000) All-Star Funds since December, 2000; Managing Director of the Advisor since September, 2005 (formerly Vice President of Columbia Management from April, 2003 to August, 2005; President of the Columbia Funds, Liberty Funds and Stein Roe Funds from February, 2004 to October, 2004; Chief Accounting Officer and Controller of the Liberty Funds and All-Star Funds from February, 1998 to October, 2000); Treasurer of the Galaxy Funds since September, 2002 (formerly Treasurer from December, 2002 to December, 2004 and President from February, 2004 to December, 2004 of the Columbia Management Multi-Strategy Hedge Fund, LLC; Vice President of Colonial Management Associates, Inc. from February, 1998 to October, 2000). ----------------------------------- MARY JOAN HOENE (Age 54) Senior Vice President and Chief 40 West 57th Street Compliance Officer of the Columbia New York, NY 10005 Funds, Liberty Funds, Stein Roe Senior Vice President and Chief Compliance Funds and All-Star Funds since Officer (since 2004) August, 2004; Chief Compliance Officer of the Columbia Management Multi Strategy Hedge Fund since August 2004. Chief Compliance Officer of the BACAP Alternative Multi-Strategy Hedge Fund LLC since October 2004 (formerly Partner, Carter, Ledyard & Milburn LLP from January, 2001 to August, 2004; Counsel, Carter, Ledyard & Milburn LLP from November, 1999 to December, 2000; Vice President and Counsel, Equitable Life Assurance Society of the United States from April, 1998 to November, 1999). ----------------------------------- MICHAEL G. CLARKE (Age 35) Chief Accounting Officer of the One Financial Center Columbia Funds, Liberty Funds, Boston, MA 02111 Stein Roe Funds and All-Star Funds Chief Accounting Officer (since 2004) since October, 2004; Managing Director of the Advisor since September, 2005; (formerly Controller of the Columbia Funds, Liberty Funds, Stein Roe Funds and All-Star Funds from May, 2004 to October, 2004; Assistant Treasurer from June, 2002 to May, 2004; Vice President, Product Strategy & Development of the Liberty Funds and Stein Roe Funds from February, 2001 to June, 2002; Assistant Treasurer of the Liberty Funds, Stein Roe Funds and the All-Star Funds from August, 1999 to February, 2001; Audit Manager, Deloitte & Touche LLP from May, 1997 to August, 1999). ----------------------------------- JEFFREY R. COLEMAN (Age 35) Controller of the Columbia Funds, One Financial Center Liberty Funds, Stein Roe Funds and Boston, MA 02111 All-Star Funds since October, 2004 Controller (since 2004) (formerly Vice President of CDC IXIS Asset Management Services, Inc. and Deputy Treasurer of the CDC Nvest Funds and Loomis Sayles Funds from February, 2003 to September, 2004; Assistant Vice President of CDC IXIS Asset Management Services, Inc. and Assistant Treasurer of the CDC Nvest Funds from August, 2000 to February, 2003; Tax Manager of PFPC, Inc. from November, 1996 to August, 2000). ----------------------------------- R. SCOTT HENDERSON (Age 46) Secretary of the Columbia Funds, One Financial Center Liberty Funds and Stein Roe Funds Boston, MA 02111 since December, 2004 (formerly Of Secretary (since 2004) Counsel, Bingham McCutchen from April, 2001 to September, 2004; Executive Director and General Counsel, Massachusetts Pension Reserves Investment Management Board from September, 1997 to March, 2001). ----------------------------------- 196 OFFICERS _______________________________________________________________________ COLUMBIA FUNDS ---------------------------------------------- GROWTH FUNDS Columbia Acorn Fund Columbia Acorn Select Columbia Acorn USA Columbia Growth Stock Fund Columbia Large Cap Growth Fund Columbia Marsico 21st Century Fund Columbia Marsico Focused Equities Fund Columbia Marsico Growth Fund Columbia Marsico Mid Cap Fund Columbia Mid Cap Growth Fund Columbia Small Cap Growth Fund I Columbia Small Cap Growth Fund II Columbia Small Company Equity Fund ---------------------------------------------- CORE FUNDS Columbia Common Stock Fund Columbia Large Cap Core Fund Columbia Small Cap Core Fund Columbia Young Investor Fund ---------------------------------------------- VALUE FUNDS Columbia Disciplined Value Fund Columbia Dividend Income Fund Columbia Large Cap Value Fund Columbia Mid Cap Value Fund Columbia Small Cap Value Fund I Columbia Small Cap Value Fund II Columbia Strategic Investor Fund ---------------------------------------------- ASSET ALLOCATION/HYBRID FUNDS Columbia Asset Allocation Fund Columbia Asset Allocation Fund II Columbia Balanced Fund Columbia Liberty Fund Columbia LifeGoalTM Balanced Growth Portfolio Columbia LifeGoalTM Growth Portfolio Columbia LifeGoalTM Income Portfolio Columbia LifeGoalTM Income and Growth Portfolio Columbia Thermostat Fund ---------------------------------------------- INDEX FUNDS Columbia Large Cap Enhanced Core Fund Columbia Large Cap Index Fund Columbia Mid Cap Index Fund Columbia Small Cap Index Fund ---------------------------------------------- TAX-MANAGED FUND Columbia Tax-Managed Growth Fund ---------------------------------------------- SPECIALTY FUNDS Columbia Convertible Securities Fund Columbia Real Estate Equity Fund Columbia Technology Fund Columbia Utilities Fund ---------------------------------------------- GLOBAL/INTERNATIONAL FUNDS Columbia Acorn International Columbia Acorn International Select Columbia Global Value Fund Columbia Greater China Fund Columbia International Stock Fund Columbia International Value Fund Columbia Marsico International Opportunities Fund Columbia Multi-Advisor International Equity Fund Columbia World Equity Fund ---------------------------------------------- TAXABLE BOND FUNDS Columbia Conservative High Yield Fund Columbia Core Bond Fund Columbia Federal Securities Fund Columbia High Income Fund Columbia High Yield Opportunity Fund Columbia Income Fund Columbia Intermediate Bond Fund Columbia Intermediate Core Bond Fund Columbia Short Term Bond Fund Columbia Strategic Income Fund Columbia Total Return Bond Fund Columbia U.S. Treasury Index Fund 197 ________________________________________________________________________________ COLUMBIA FUNDS ---------------------------------------------- TAX-EXEMPT BOND FUNDS Columbia California Tax-Exempt Fund Columbia CA Intermediate Municipal Bond Fund Columbia Connecticut Tax-Exempt Fund Columbia CT Intermediate Municipal Bond Fund Columbia FL Intermediate Municipal Bond Fund Columbia GA Intermediate Municipal Bond Fund Columbia High Yield Municipal Fund Columbia Intermediate Municipal Bond Fund Columbia MA Intermediate Municipal Bond Fund Columbia Massachusetts Tax-Exempt Fund Columbia MD Intermediate Municipal Bond Fund Columbia Municipal Income Fund Columbia NC Intermediate Municipal Bond Fund Columbia New York Tax-Exempt Fund Columbia NJ Intermediate Municipal Bond Fund Columbia NY Intermediate Municipal Bond Fund Columbia OR Intermediate Municipal Bond Fund Columbia RI Intermediate Municipal Bond Fund Columbia SC Intermediate Municipal Bond Fund Columbia Short Term Municipal Income Fund Columbia Tax-Exempt Fund Columbia Tax-Exempt Insured Fund Columbia TX Intermediate Municipal Bond Fund Columbia VA Intermediate Municipal Bond Fund ---------------------------------------------- MONEY MARKET FUNDS Columbia Government Plus Reserves Columbia Treasury Reserves Columbia Money Market Reserves Columbia Government Reserves Columbia Tax-Exempt Reserves Columbia New York Tax-Exempt Reserves Columbia Municipal Reserves Columbia Cash Reserves Please consider the investment objectives, risks, charges and expenses of a mutual fund carefully before investing. Contact us at 800-345-6611 for a prospectus which contains this and other important information about the fund. Read it carefully before you invest. For complete product information on any Columbia fund, visit our website at www.columbiafunds.com. Columbia Management is the primary investment management division of Bank of America Corporation. Columbia Management entities furnish investment management services and advise institutional and mutual fund portfolios. Columbia Management Advisors, Inc. and Banc of America Capital Management, LLC, both SEC registered investment advisors and wholly owned subsidiaries of Bank of America, N.A. merged on September 30, 2005. At that time, the newly combined advisor changed its name to Columbia Management Advisors, LLC ("CMA"). CMA will continue to operate as a SEC- registered investment advisor, wholly owned subsidiary of Bank of America, N.A. and part of Columbia Management. 198 This page intentionally left blank. This page intentionally left blank. IMPORTANT INFORMATION ABOUT THIS REPORT ________________________________________ COLUMBIA FUNDS TRANSFER AGENT Columbia Management Services, Inc. P.O. Box 8081 Boston MA 02266-8081 800-345-6611 DISTRIBUTOR Columbia Management Distributors, Inc. One Financial Center Boston MA 02111 INVESTMENT ADVISOR Columbia Management Advisors, LLC 100 Federal Street Boston MA 02110 INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM PricewaterhouseCoopers LLP 125 High Street Boston MA 02110~ The funds mail one shareholder report to each shareholder address. If you would like more than one report, please call shareholder services at 800-345-6611 and additional reports will be sent to you. This report has been prepared for shareholders of Columbia Funds. This report may also be used as sales literature when preceded or accompanied by the current prospectus which provides details of sales charges, investment objectives and operating policies of the funds and with the most recent copy of the Columbia Funds Performance Update. A description of the policies and procedures that the funds use to determine how to vote proxies and a copy of the funds' voting record are available (i) at www.columbiamanagement.com; (ii) on the Securities and Exchange Commission's website at www.sec.gov, and (iii) without charge, upon request, by calling 800-368-0346. Information regarding how the funds voted proxies relating to portfolio securities during the 12-month period ended June 30, is available from the SEC's website. Information regarding how the funds voted proxies relating to portfolio securities is also available from the funds' website. The funds file a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The funds' Form N-Q is available on the SEC's website at www.sec.gov and may be reviewed and copied at the SEC's Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. Columbia Management is the primary investment management division of Bank of America Corporation. Columbia Management entities furnish investment management services and advise institutional and mutual fund portfolios. Columbia Management Advisors, Inc. and Banc of America Capital Management, LLC, both SEC registered investment advisors and wholly owned subsidiaries of Bank of America, N.A. merged on September 30, 2005. At that time, the newly combined advisor changed its name to Columbia Management Advisors, LLC ("CMA"). CMA will continue to operate as a SEC-registered investment advisor, wholly owned subsidiary of Bank of America, N.A. and part of Columbia Management. 201 - -------------------------------------------------------------------------------- (Photo of eDelivery) Help your fund reduce printing and postage costs! Elect to get your shareholder reports by electronic delivery. With Columbia's eDelivery program, you receive an e-mail message when your shareholder report becomes available online. If your fund account is registered with Columbia Funds, you can sign up quickly and easily on our website at www.columbiafunds.com. Please note -- if you own your fund shares through a financial institution, contact the institution to see if it offers electronic delivery. If you own your fund shares through a retirement plan, electronic delivery may not be available to you. - -------------------------------------------------------------------------------- --------------- COLUMBIA FUNDS ANNUAL REPORT, AUGUST 31, 2005 PRSRT STD U.S. POSTAGE PAID HOLLISTON, MA PERMIT NO. 20 --------------- COLUMBIA MANAGEMENT (R) (c) 2005 COLUMBIA MANAGEMENT DISTRIBUTORS, INC. ONE FINANCIAL CENTER, BOSTON, MA 02111-2621 800.345.6611 WWW.COLUMBIAFUNDS.COM SHC-42/9037O-0805 (10/05) 05/7959 ITEM 2. CODE OF ETHICS. (a) The registrant has, as of the end of the period covered by this report, adopted a code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party. (b) During the period covered by this report, there were not any amendments to a provision of the code of ethics adopted in 2(a) above. (c) During the period covered by this report, there were not any waivers or implicit waivers to a provision of the code of ethics adopted in 2(a) above. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. The registrant's Board of Trustees has determined that Douglas A. Hacker, Thomas E. Stitzel, Anne-Lee Verville and Richard L. Woolworth, each of whom are members of the registrant's Board of Trustees and Audit Committee, each qualify as an audit committee financial expert. Mr. Hacker, Mr. Stitzel, Ms. Verville and Mr. Woolworth are each independent trustees, as defined in paragraph (a)(2) of this item's instructions and collectively constitute the entire Audit Committee. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. (a) Aggregate Audit Fees billed by the principal accountant for professional services rendered during the fiscal years ended August 31, 2005 and August 31, 2004 are approximately as follows: 2005 2004 $30,700 $29,300 Audit Fees include amounts related to the audit of the registrant's annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years. Note that fiscal year 2004 includes the review of a non-routine regulatory filing. (b) Aggregate Audit-Related Fees billed by the principal accountant for professional services rendered during the fiscal years ended August 31, 2005 and August 31, 2004 are approximately as follows: 2005 2004 $4,400 $3,500 Audit-Related Fees include amounts for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant's financial statements and are not reported in Audit Fees above. In both fiscal years 2005 and 2004, Audit-Related Fees include certain agreed-upon procedures performed for semi-annual shareholder reports. In fiscal year 2005 Audit-Related Fees also include certain agreed-upon procedures related to the review of the registrant's anti-money laundering program. (c) Aggregate Tax Fees billed by the principal accountant for professional services rendered during the fiscal years ended August 31, 2005 and August 31, 2004 are approximately as follows: 2005 2004 $2,500 $2,300 Tax Fees in both fiscal years 2005 and 2004 consist primarily of the review of annual tax returns and include amounts for professional services by the principal accountant for tax compliance, tax advice and tax planning. (d) Aggregate All Other Fees billed by the principal accountant for professional services rendered during the fiscal years ended August 31, 2005 and August 31, 2004 are approximately as follows: 2005 2004 $0 $0 All Other Fees include amounts for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) above. None of the amounts described in paragraphs (a) through (d) above were approved pursuant to the "de minimis" exception under paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X. (e)(1) AUDIT COMMITTEE PRE-APPROVAL POLICIES AND PROCEDURES I. GENERAL OVERVIEW The Audit Committee of the registrant has adopted a formal policy (the "Policy") which sets forth the procedures and the conditions pursuant to which the Audit Committee will pre-approve (i) all audit and non-audit (including audit related, tax and all other) services provided by the registrant's independent auditor to the registrant and individual funds (collectively "Fund Services"), and (ii) all non-audit services provided by the registrant's independent auditor to the funds' adviser or a control affiliate of the adviser, that relate directly to the funds' operations and financial reporting (collectively "Fund-related Adviser Services"). A "control affiliate" is an entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the funds, and the term "adviser" is deemed to exclude any unaffiliated sub-adviser whose role is primarily portfolio management and is sub-contracted or overseen by another investment adviser. The adviser and control affiliates are collectively referred to as "Adviser Entities." The Audit Committee uses a combination of specific (on a case-by-case basis as potential services are contemplated) and general (pre-determined list of permitted services) pre-approvals. Unless a type of service has received general pre-approval, it will require specific pre-approval by the Audit Committee if it is to be provided by the independent auditor. The Policy does not delegate the Audit Committee's responsibilities to pre-approve services performed by the independent auditor to management. II. GENERAL PROCEDURES On an annual basis, the Fund Treasurer and/or Director of Trustee Administration shall submit to the Audit Committee a schedule of the types of Fund Services and Fund-related Adviser Services that are subject to general pre-approval. These schedules will provide a description of each type of service that is subject to general pre-approval and, where possible, will provide estimated fees for each instance of providing each service. This general pre-approval and related fees (where provided) will generally cover a one-year period (for example, from June 1 through May 31 of the following year). The Audit Committee will review and approve the types of services and review the projected fees for the next one-year period and may add to, or subtract from, the list of general pre-approved services from time to time, based on subsequent determinations. This approval acknowledges that the Audit Committee is in agreement with the specific types of services that the independent auditor will be permitted to perform. The fee amounts will be updated to the extent necessary at other regularly scheduled meetings of the Audit Committee. In addition to the fees for each individual service, the Audit Committee has the authority to implement a fee cap on the aggregate amount of non-audit services provided to an individual fund. If, subsequent to general pre-approval, a fund, its investment adviser or a control affiliate determines that it would like to engage the independent auditor to perform a service that requires pre-approval and that is not included in the general pre-approval list, the specific pre-approval procedure shall be as follows: o A brief written request shall be prepared by management detailing the proposed engagement with explanation as to why the work is proposed to be performed by the independent auditor; o The request should be addressed to the Audit Committee with copies to the Fund Treasurer and/or Director of Trustee Administration; o The Fund Treasurer and/or Director of Trustee Administration will arrange for a discussion of the service to be included on the agenda for the next regularly scheduled Audit Committee meeting, when the Committee will discuss the proposed engagement and approve or deny the request. o If the timing of the project is critical and the project needs to commence before the next regularly scheduled meeting, the Chairperson of the Audit Committee may approve or deny the request on behalf of the Audit Committee, or, in the Chairperson's discretion, determine to call a special meeting of the Audit Committee for the purpose of considering the proposal. Should the Chairperson of the Audit Committee be unavailable, any other member of the Audit Committee may serve as an alternate for the purpose of approving or denying the request. Discussion with the Chairperson (or alternate, if necessary) will be arranged by the Fund Treasurer and/or Director of Trustee Administration. The independent auditor will not commence any such project unless and until specific approval has been given. III. CERTAIN OTHER SERVICES PROVIDED TO ADVISER ENTITIES The Audit Committee recognizes that there are cases where services proposed to be provided by the independent auditor to the adviser or control affiliates are not Fund-related Adviser Services within the meaning of the Policy, but nonetheless may be relevant to the Audit Committee's ongoing evaluation of the auditor's independence and objectivity with respect to its audit services to the funds. As a result, in all cases where an Adviser Entity engages the independent auditor to provide audit or non-audit services that are not Fund Services or Fund-related Adviser Services, were not subject to pre-approval by the Audit Committee, and the projected fees for any such engagement (or the aggregate of all such engagements during the period covered by the Policy) exceeds a pre-determined threshold established by the Audit Committee; the independent auditor, Fund Treasurer and/or Director of Trustee Administration will notify the Audit Committee not later than its next meeting. Such notification shall include a general description of the services provided, the entity that is to be the recipient of such services, the timing of the engagement, the entity's reasons for selecting the independent auditor, and the projected fees. Such information will allow the Audit Committee to consider whether non-audit services provided to the adviser and Adviser Entities, which were not subject to Audit Committee pre-approval, are compatible with maintaining the auditor's independence with respect to the Funds. IV. REPORTING TO THE AUDIT COMMITTEE The Fund Treasurer or Director of Trustee Administration shall report to the Audit Committee at each of its regular meetings regarding all Fund Services or Fund-related Adviser Services initiated since the last such report was rendered, including: o A general description of the services, and o Actual billed and projected fees, and o The means by which such Fund Services or Fund-related Adviser Services were pre-approved by the Audit Committee. In addition, the independent auditor shall report to the Audit Committee annually, and no more than 90 days prior to the filing of audit reports with the SEC, all non-audit services provided to entities in the funds' "investment company complex," as defined by SEC rules, that did not require pre-approval under the Policy. V. AMENDMENTS; ANNUAL APPROVAL BY AUDIT COMMITTEE The Policy may be amended from time to time by the Audit Committee. Prompt notice of any amendments will be provided to the independent auditor, Fund Treasurer and Director of Trustee Administration. The Policy shall be reviewed and approved at least annually by the Audit Committee. ***** (e)(2) The percentage of services described in paragraphs (b) through (d) of this Item approved pursuant to the "de minimis" exception under paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X during both fiscal years ended August 31, 2005 and August 31, 2004 was zero. (f) Not applicable. (g) All non-audit fees billed by the registrant's accountant for services rendered to the registrant for the fiscal years ended August 31, 2005 and August 31, 2004 are disclosed in (b) through (d) of this Item. During the fiscal years ended August 31, 2005 and August 31, 2004, there were no Audit-Related Fees or Tax Fees that were approved for services to the investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant under paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X. During the fiscal years ended August 31, 2005 and August 31, 2004, All Other Fees that were approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X were approximately $95,500 and $95,000, respectively. For both fiscal years, All Other Fees consist primarily of internal controls reviews of the registrant's transfer agent. The percentage of Audit-Related Fees, Tax Fees and All Other Fees required to be approved under paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X that were approved under the "de minimis" exception during both fiscal years ended August 31, 2005 and August 31, 2004 was zero. (h) The registrant's Audit Committee of the Board of Directors has considered whether the provision of non-audit services that were rendered to the registrant's adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, is compatible with maintaining the principal accountant's independence. The Audit Committee determined that the provision of such services is compatible with maintaining the principal accountant's independence. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable. ITEM 6. SCHEDULE OF INVESTMENTS The registrant's "Schedule I - Investments in securities of unaffiliated issuers" (as set forth in 17 CFR 210.12-12) is included in Item 1 of this Form N-CSR. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable. ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable. ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. Not applicable. ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. There have not been any material changes to the procedures by which shareholders may recommend nominees to the registrant's board of directors, since those procedures were last disclosed in response to requirements of Item 7(d)(2)(ii)(G) of Schedule 14A or this Item. ITEM 11. CONTROLS AND PROCEDURES. (a) The registrant's principal executive officer and principal financial officers, based on their evaluation of the registrant's disclosure controls and procedures as of a date within 90 days of the filing of this report, has concluded that such controls and procedures are adequately designed to ensure that information required to be disclosed by the registrant in Form N-CSR is accumulated and communicated to the registrant's management, including the principal executive officer and principal financial officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. (b) There were no changes in the registrant's internal control over financial reporting that occurred during the registrant's second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 12. EXHIBITS. (a)(1) Code of ethics required to be disclosed under Item 2 of Form N-CSR attached hereto as Exhibit 99.CODE ETH. (a)(2) Certifications pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) attached hereto as Exhibit 99.CERT. (a)(3) Not applicable. (b) Certification pursuant to 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 Mid Cap Growth Fund, Inc. -------------------------------------------------------------------- By (Signature and Title) /s/ Christopher L. Wilson -------------------------------------------------------- Christopher L. Wilson, President Date October 27, 2005 ---------------------------------------------------------------------------- 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/ Christopher L. Wilson -------------------------------------------------------- Christopher L. Wilson, President Date October 27, 2005 ---------------------------------------------------------------------------- By (Signature and Title) /s/ J. Kevin Connaughton -------------------------------------------------------- J. Kevin Connaughton, Treasurer Date October 27, 2005 ---------------------------------------------------------------------------- EX-99.CODE ETH 2 file002.txt CODE OF ETHICS COLUMBIA MANAGEMENT GROUP FAMILY OF FUNDS CODE OF ETHICS FOR PRINCIPAL EXECUTIVE AND SENIOR FINANCIAL OFFICERS I. COVERED OFFICERS/PURPOSE OF THE CODE This Code of Ethics (the "Code") for the investment companies within the Columbia Management Group fund complex (collectively the "Funds" and each, a "Fund") applies to the Funds' Principal Executive Officer, Principal Financial Officer, Principal Accounting Officer, and Director of Trustee Administration (the "Covered Officers") for the purpose of promoting: o honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships; o full, fair, accurate, timely and understandable disclosure in reports and documents that a Fund files with, or submits to, the Securities and Exchange Commission ("SEC"), and in other public communications made by a Fund; o compliance with applicable laws and governmental rules and regulations; o the prompt internal reporting of violations of the Code to an appropriate person or persons identified in the Code; and o accountability for adherence to the Code. Each Covered Officer shall adhere to a high standard of business ethics and shall be sensitive to situations that may give rise to actual or apparent conflicts of interest. II. ADMINISTRATION OF THE CODE The Boards of Trustees and Boards of Directors of the Funds (collectively, the "Board") shall designate an individual to be primarily responsible for the administration of the Code (the "Code Officer"). The Code shall be administered by the Columbia Management Group Compliance Department. In the absence of the Code Officer, his or her designee shall serve as the Code Officer, but only on a temporary basis. Each Fund has designated a chief legal officer (the "Chief Legal Officer") for purposes of the Sarbanes-Oxley Act of 2002 and the rules promulgated thereunder. The Chief Legal Officer of a Fund shall assist the Fund's Code Officer in administration of this Code. The Chief Legal Officer shall be responsible for applying this Code to specific situations in which questions are presented under it (in consultation with Fund counsel, where appropriate) and has the authority to interpret this Code in any particular situation. However, any waivers sought by a Covered Officer must be approved by each Audit Committee of the Funds (collectively, the "Audit Committee"). III. MANAGING CONFLICTS OF INTEREST OVERVIEW. A "conflict of interest" occurs when a Covered Officer's private interest interferes with the interests of, or his/her service to, a Fund. For example, a conflict of interest would arise if a Covered Officer, or a family member, receives improper personal benefits as a result of the Covered Officer's position with a Fund. Certain conflicts of interest arise out of the relationships between Covered Officers and a Fund and already are subject to conflict of interest provisions in the Investment Company Act of 1940 (the "Company Act") and the Investment Advisers Act of 1940 (the "Advisers Act"). For example, Covered Officers may not individually engage in certain transactions (such as the purchase or sale of securities or other property) with a Fund because of their status as "affiliated persons" of the Fund. A Fund's and its investment adviser's compliance programs and procedures are designed to prevent, or identify and correct, violations of those provisions. This Code does not, and is not intended to, repeat or replace those programs and procedures, and such conflicts fall outside of the parameters of this Code. Although typically not presenting an opportunity for improper personal benefit, conflicts may arise from, or as a result of, the contractual relationship between a Fund and its investment adviser, administrator, principal underwriter, pricing and bookkeeping agent and/or transfer agent (each, a "Service Provider") of which the Covered Officers are also officers or employees. As a result, this Code recognizes that the Covered Officers will, in the normal course of their duties (whether formally for a Fund or for a Service Provider, or for both), be involved in establishing policies and implementing decisions that will have different effects on the Service Provider and a Fund. The participation of the Covered Officers in such activities is inherent in the contractual relationship between the Fund and the Service Provider and is consistent with the performance by the Covered Officers of their duties as officers of a Fund. In addition, it is recognized by the Board that the Covered Officers may also be officers or employees of one or more other investment companies covered by this or other codes. Other conflicts of interest are covered by the Code, even if such conflicts of interest are not subject to provisions of the Company Act and the Advisers Act. The following list provides examples of conflicts of interest under the Code, but Covered Officers should keep in mind that these examples are not exhaustive. The overarching principle is that the personal interest of a Covered Officer should not be placed improperly before the interest of a Fund. Each Covered Officer must: o not use personal influence or personal relationships improperly to influence investment decisions or financial reporting by a Fund whereby the Covered Officer or an immediate family member would benefit personally to the detriment of a Fund; and o not cause a Fund to take action, or fail to take action, for the individual personal benefit of the Covered Officer or an immediate family member rather than the benefit of the Fund.(1). There are some conflict of interest situations that must be approved by the Code Officer, after consultation with the Chief Legal Officer. Those situations include, but are not limited to,: o service as director on the board of any public or private company; o the receipt of any gifts in excess of $100 in the aggregate from a third party that does or seeks to do business with the Funds during any 12-month period; o the receipt of any entertainment from any company with which a Fund has current or prospective business dealings, unless such entertainment is business-related, reasonable in cost, appropriate as to time and place, and not so frequent as to raise any question of impropriety; o any material ownership interest in, or any consulting or employment relationship with, any Fund service providers, other than its investment adviser, principal underwriter, administrator or any affiliated person thereof; o a direct or indirect material financial interest in commissions, transaction charges or spreads paid by a Fund for effecting portfolio transactions or for selling or redeeming shares other than an interest arising from the Covered Officer's employment, such as compensation or equity ownership. IV. DISCLOSURE AND COMPLIANCE Each Covered Officer shall: o be familiar with the disclosure requirements generally applicable to the Funds; o not knowingly misrepresent, or cause others to misrepresent, facts about any Fund to others, whether within or outside the Fund, (1) For purposes of this Code, personal trading activity of the Covered Officers shall be monitored in accordance with the Columbia Management Group Code of Ethics. Each Covered Officer shall be considered an "Access Person" under such Code. The term "immediate family" shall have the same meaning as provided in such Code. including to the Fund's trustees and auditors, and to governmental regulators and self-regulatory organizations; o to the extent appropriate within his/her area of responsibility, consult with other officers and employees of the Funds and the adviser with the goal of promoting full, fair, accurate, timely and understandable disclosure in the reports and documents the Funds file with, or submit to, the SEC and in other public communications made by the Funds; and o promote compliance with the standards and restrictions imposed by applicable laws, rules and regulations. V. REPORTING AND ACCOUNTABILITY Each Covered Officer must: o upon adoption of the Code (or after becoming a Covered Officer), affirm in writing to the Board that he/she has received, read and understands the Code; o annually affirm to the Board compliance with the requirements of the Code; o not retaliate against any other Covered Officer or any employee of the Funds or their affiliated persons for reports of potential violations that are made in good faith; o notify the Chief Legal Officer and the Code Officer promptly if he/she knows of any violation of this Code; and o respond to the trustee and officer questionnaires circulated periodically in connection with the preparation of disclosure documents for the Funds. The Code Officer shall maintain records of all activities related to this Code. The Funds will follow the procedures set forth below in investigating and enforcing this Code: o The Chief Legal Officer and/or the Code Officer will take all appropriate action to investigate any potential violation reported to him/her; o If, after such investigation, the Chief Legal Officer and the Code Officer believes that no violation has occurred, the Code Officer will notify the person(s) reporting the potential violation, and no further action is required; o Any matter that the Chief Legal Officer and/or the Code Officer believes is a violation will be reported to the Audit Committee; o If the Audit Committee concurs that a violation has occurred, it will inform and make a recommendation to the Board, which will consider appropriate action, which may include review of, and appropriate modifications to, applicable policies and procedures; notification to the Chief Executive Officer of Columbia Management Group; or a recommendation to sanction or dismiss the Covered Officer; o The Audit Committee will be responsible for granting waivers in its sole discretion; o Any changes to or waivers of this Code will, to the extent required, be disclosed as provided by SEC rules. The Chief Legal Officer shall: o report to the Audit Committee quarterly any approvals provided in accordance with Section III of this Code; and o report to the Audit Committee quarterly any violations of, or material issues arising under, this Code. VI. OTHER POLICIES AND PROCEDURES This Code shall be the sole code of ethics adopted by the Funds for the purposes of Section 406 of the Sarbanes-Oxley Act and the rules and forms applicable to registered investment companies thereunder. Insofar as other polices or procedures of the Funds or the Funds' Service Providers govern or purport to govern the behavior or activities (including, but not limited to, personal trading activities) of the Covered Officers who are subject to this Code, they are superseded by this Code to the extent that they overlap or conflict with the provisions of this Code. The Funds' and their investment advisers' and principal underwriter's codes of ethics under Rule 17j-1 under the Company Act and any policies and procedures of the Service Providers are separate requirements applicable to the Covered Officers and are not part of this Code. VII. AMENDMENTS All material amendments to this Code must be approved or ratified by the Board, including a majority of independent directors. VIII. CONFIDENTIALITY All reports and records prepared or maintained pursuant to this Code will be considered confidential and shall be maintained and protected accordingly. Except as otherwise required by law or this Code, such matters shall not be disclosed to anyone other than the Board, the Covered Officers, the Chief Legal Officer, the Code Officer, outside audit firms and legal counsel to the Funds, and senior management of Columbia Management Group. IX. INTERNAL USE The Code is intended solely for the internal use by the Funds and does not constitute an admission, by or on behalf of any Fund, as to any fact, circumstance, or legal conclusion. EX-99.CERT 3 file003.txt CERTIFICATIONS I, Christopher L. Wilson, certify that: 1. I have reviewed this report on Form N-CSR of Columbia Mid Cap Growth 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) and internal control over financial reporting (as defined in Rule 30a-3(d) 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) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) 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 (d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's second fiscal quarter of the period covered by this 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: October 27, 2005 /s/ Christopher L. Wilson -------------------------------- Christopher L. Wilson, President I, J. Kevin Connaughton, certify that: 1. I have reviewed this report on Form N-CSR of Columbia Mid Cap Growth 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) and internal control over financial reporting (as defined in Rule 30a-3(d) 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) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) 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 (d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's second fiscal quarter of the period covered by this 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: October 27, 2005 /s/ J. Kevin Connaughton ------------------------------- J. Kevin Connaughton, Treasurer EX-99.906CERT 4 file004.txt CERTIFICATIONS CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 In connection with the Certified Shareholder Report of Columbia Mid Cap Growth Fund, Inc. (the "Trust") on Form N-CSR for the period ending August 31, 2005, 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: October 27, 2005 /s/ Christopher L. Wilson -------------------------------- Christopher L. Wilson, President Date: October 27, 2005 /s/ J. Kevin Connaughton ------------------------------- J. Kevin Connaughton, Treasurer 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-----