N-30D 1 f74106an-30d.txt COLUMBIA FUNDS SEMIANNUAL REPORT DATED 6/30/01 1 TABLE OF CONTENTS -------------------------------------------------------------------------------- COLUMBIA FUNDS SEMIANNUAL REPORT JUNE 30, 2001 INTRODUCTION 1 TO OUR SHAREHOLDERS ------------------------------------------------------------------------------ INVESTMENT 4 COLUMBIA COMMON STOCK FUND REVIEWS 6 COLUMBIA GROWTH FUND 8 COLUMBIA INTERNATIONAL STOCK FUND 10 COLUMBIA SPECIAL FUND 12 COLUMBIA SMALL CAP FUND 14 COLUMBIA REAL ESTATE EQUITY FUND 16 COLUMBIA TECHNOLOGY FUND 18 COLUMBIA STRATEGIC VALUE FUND 20 COLUMBIA BALANCED FUND 22 COLUMBIA SHORT TERM BOND FUND 24 COLUMBIA FIXED INCOME SECURITIES FUND 26 COLUMBIA NATIONAL MUNICIPAL BOND FUND 28 COLUMBIA OREGON MUNICIPAL BOND FUND 30 COLUMBIA HIGH YIELD FUND 32 COLUMBIA DAILY INCOME COMPANY ------------------------------------------------------------------------------ FINANCIAL 33 FINANCIAL HIGHLIGHTS INFORMATION 41 SCHEDULES OF INVESTMENTS 90 STATEMENTS OF ASSETS AND LIABILITIES 92 STATEMENTS OF OPERATIONS 94 STATEMENTS OF CHANGES IN NET ASSETS 96 NOTES TO FINANCIAL STATEMENTS
COLUMBIA FUNDS COLUMBIA FINANCIAL CENTER 1301 SW FIFTH AVENUE PORTLAND, OR 97201-5601 1-800-547-1707 WWW.COLUMBIAFUNDS.COM FRONT COVER FEATURES A PHOTOGRAPH OF THE 84-YEAR-OLD VISTA HOUSE, PERCHED ATOP CROWN POINT AT THE MOUTH OF THE COLUMBIA RIVER GORGE. THE PHOTO WAS TAKEN IN OREGON, LOOKING ACROSS TO WASHINGTON STATE. 2 TO OUR SHAREHOLDERS -------------------------------------------------------------------------------- [BAR GRAPH] FED BEGINS EASING POLICY IN EARLY 2001
FED FUNDS RATE (%) ------------------ 2-Feb '00 5.75 21-Mar 6 16-May 6.5 3-Jan '01 6 31-Jan 5.5 20-Mar 5 18-Apr 4.5 15-May 4 27-Jun 3.75
Source: Federal Reserve Board We are pleased to present the Columbia Funds 2001 Semiannual Report. In the following pages, you will find detailed discussions and financial information about the 15 Columbia Funds. We know that the past six months have been a challenging environment for even the most resilient investor. Although the recent market correction has had a short-term negative effect on stock market returns, we firmly believe that the markets will recover and investors will be rewarded for maintaining a long-term view. Here, we discuss the positive steps that both the Federal Reserve Board (the "Fed") and many companies are taking to foster a more profitable future. We hope that you find this material helpful as you evaluate the performance of your investments. ALL EYES ON THE FED On the second trading day of 2001, the Fed surprised the markets with a 0.50% cut in the federal funds rate. This unscheduled move -- which was to be the first of six rate reductions in the first half of the year -- came on the heels of increasing investor anxiety about an economy that was cooling too rapidly. The economy (as measured by the gross domestic product) grew at an annualized pace of 1.2% in the first quarter of 2001, and then dropped to a rate of 0.7% (a preliminarily reported number) in the second quarter. In an attempt to pump new life into the economy, the Fed lowered short-term interest rates a total of 2.75% during the first half of 2001. As the monetary easing process advanced, the markets rallied in April and May on hopes of a rebound. However, investor confidence faded as economic data released in late May and June offered disappointing news about near-term prospects for an economic and corporate profit recovery. Meanwhile, the slowdown in economic activity also spread to Europe and Japan, resulting in weaker stock performance abroad. BUSINESSES TAKE ACTION Businesses have responded to the sharp decline in economic activity by aggressively slashing capital spending, curtailing overtime hours, laying off workers and reducing inventories. As a result, initial jobless claims have been rising, though they do appear to be stabilizing. Also, capital spending declined faster in the second quarter than in the prior two quarters, but it is expected to even out later in the year. Despite the uncertain economic environment, the consumer and housing sectors have been resilient. Consumer confidence rebounded in the second quarter, and consumers have continued to spend. The Bush administration's tax cuts and rebate 1 3 TO OUR SHAREHOLDERS -------------------------------------------------------------------------------- ECONOMY STARTS SLOWING IN 2000 [BAR GRAPH]
GDP GROWTH ---------- 3Q '99 5.70 4Q '99 8.30 1Q '00 4.80 2Q '00 5.60 3Q '00 2.20 4Q '00 1.00 1Q '01 1.20 2Q '01* 0.70
--------------- Source: U.S. Department of Commerce * Estimate checks should support consumer spending in spite of the increase in unemployment. In addition, given the sharp decline in economic growth, the housing sector remains unusually strong. STOCKS REFLECT SLUGGISH GROWTH In the first half of 2001, the slowing economy negatively affected stock prices as demand and production remained soft. For the period, the S&P 500 Index, representative of large-cap stocks, posted a return of -6.70%. Primarily made up of small-cap stocks, the Russell 2000 Index fared better, returning 6.85% for the same period. A rally in the second quarter, which favored growth stocks over value stocks, and smaller stocks over large-cap stocks, aided the Russell 2000's return. During the second quarter, the Russell 2000 returned 14.29% while the S&P 500 gained 5.85%. Throughout the period, we maintained a focus on a fairly recent investment theme, "Beneficiaries of Policy Change." We believe that the shifts in monetary policy (declining short-term interest rates) and fiscal policy (new tax relief legislation) should provide a stimulus to earnings and stock prices for certain companies. Such companies would include financial stocks and early cycle stocks, like retailers. In addition, we've introduced a new "Long Cycle Infrastructure" investment theme. In recent years, certain areas of U.S. and global infrastructure have suffered from a lack of new investments due to regulations, environmental priorities and an unfavorable governmental bias. Due to shortages and changes in federal priorities, capital spending on infrastructure is expected to increase over the next several years. Therefore, we are focusing on stocks of companies involved in industries like transportation and natural gas pipeline. BONDS EXCEL Though the stock markets have struggled in the current environment, Fed easing resulted in solid performance for bonds in the first half of 2001. The Lehman Aggregate Bond Index, for instance, returned 3.62% for the period. The yield curve is returning to a more normal (steep) shape, where long-term rates are higher than short-term rates. A steeper yield curve has historically been a positive signal in advance of an economic recovery, although it has not consistently indicated the timing or strength of that recovery. Corporate debt issues have performed well this year in expectation that the economy and earnings will recover with the benefit of Fed easing. Yields on corporate and mortgage securities remain historically high relative to Treasuries, and high yield bonds continue to be an attractive source of additional income in bond portfolios. 2 4 TO OUR SHAREHOLDERS -------------------------------------------------------------------------------- We will continue to work hard to navigate the markets to your benefit and minimize downside risk to the Funds. MAINTAINING A LONG-TERM PERSPECTIVE Aggressive Fed easing has historically been positive for stock prices and, ultimately, corporate earnings. However, it takes time for the effects of interest rate cuts to work their way through the economy. We expect to see some early signs of recovery later this year, with more stable and sustained growth in 2002. Aggressive action by the Fed has bolstered consumer confidence, but corporate earnings need to stabilize and corporate confidence needs to improve for the economy to get back on a higher growth path. In over 35 years of business at Columbia, we have witnessed our share of bear markets and economic slowdowns. After several years of strong stock market performance, the current market weakness serves to remind us that we are involved in a cyclical business, where not only patience, but also diversification is a virtue. Ultimately, time heals the markets, but until it does, we will continue to work hard to navigate the markets to your benefit and minimize downside risk to the Funds. NEWS AT COLUMBIA We would like to take this opportunity to announce that Richard J. Johnson has taken the helm as chief investment officer. You may know him as the lead manager of Columbia Special Fund and Columbia Small Cap Fund, a role that he will continue to perform in addition to his new position. Since joining the company in 1994, Mr. Johnson has built an outstanding small/mid-cap team while contributing to Columbia's investment process on a strategic level. We believe his leadership, knowledge and commitment will strengthen our investment process and help to position Columbia Funds for continued success. To learn more about what's new at Columbia, visit us at www.columbiafunds.com. On our Web site, you'll also find up-to-date performance, as well as secure access to your account information. If you have questions about how to begin viewing your account online, simply send a note to askcolumbia@columbiafunds.com. Or, call an Investor Services Representative at 1-800-547-1707, Monday through Friday, between the hours of 7:30 a.m. and 5:00 p.m. Pacific Standard Time. Thank you for your investment and continued confidence in Columbia Funds. Sincerely, /s/ Thomas L. Thomsen /s/ Jeff B. Curtis Thomas L. Thomsen Jeff B. Curtis Chairman and Chief Executive Officer President Columbia Funds Management Company Columbia Funds Management Company
August 2001 3 5 INVESTMENT REVIEWS -------------------------------------------------------------------------------- COLUMBIA COMMON STOCK FUND AVERAGE ANNUAL TOTAL RETURNS As of June 30, 2001
CCSF S&P 500 ------ ------- 1 Year -21.06% -14.84% 5 Years 13.04% 14.47% Since Inception (10/1/91) 14.67% 14.98%
GROWTH OF $10,000 SINCE INCEPTION [LINE GRAPH]
PERIOD ENDED COLUMBIA COMMON STOCK FUND S&P 500 ------------ -------------------------- ------- 10/1/91 10000 10000 12/31/91 11025 10838 12/31/92 12126 11664 12/31/93 14120 12840 12/31/94 14411 13009 12/31/95 18855 17898 12/31/96 22760 22007 12/31/97 28534 29349 12/31/98 36033 37737 12/31/99 45315 45677 12/31/00 42719 41515 6/30/01 38258 38731
--------------- Past performance is not predictive of future results. The S&P 500 is an unmanaged index generally considered representative of the U.S. stock market. FUND PERFORMANCE For the six months ended June 30, 2001, Columbia Common Stock Fund posted a return of -10.44%, lagging the -6.70% return of the S&P 500 Index. A TOUGH ENVIRONMENT The first six months of 2001 posed a difficult investment environment for the Fund. A rapid economic slowdown negatively affected the broad market, resulting in increased risk to earnings estimates. In an effort to boost the sluggish economy, the Federal Reserve lowered interest rates on six occasions during the period. The aggressive rate cuts, combined with oversold conditions, created an environment for a market rally in April that lasted through late May. Technology, the hardest hit sector in the current economic slowdown, was able to recover some lost ground, but fundamentals continue to be weak across the sector. SOLID CONTRIBUTORS TO PERFORMANCE During this challenging market environment, Fund performance was enhanced by holdings in the media and consumer cyclical sectors. In particular, AOL Time Warner and Waste Management both performed nicely in the first six months of the year. AOL bounced back from its oversold position in late 2000, and investors became more confident in the company as it provided evidence that expectations would be met in one of the most difficult earnings environments. Waste Management is in the second phase of a turnaround. The company is led by a new management team, and we believe that the effort will be successful. In the first half of the year, investors became increasingly convinced that this company was being brought back to life, and its share price reflects this sentiment. SOME DISAPPOINTMENTS Sectors that hampered the Fund's performance in the first half of the year included gas and electric utilities, consumer staples and technology. Also, some individual Fund holdings were a drag on performance, including American Express. The extremely weak capital markets and deteriorating credit markets caught up to the company's financial advisors unit, which comprises approximately 30% of its earnings. Although American Express' performance was disappointing, we are encouraged by the management team's aggressive response and believe that the company will emerge from this economic and capital market 4 6 INVESTMENT REVIEWS -------------------------------------------------------------------------------- slowdown with strong earnings growth. Therefore, we have chosen to retain the Fund's investment in the company. EMPHASIZING INVESTMENT THEMES To position the Fund for success in the current volatile environment, we continue to emphasize the "Beneficiaries of Policy Change" investment theme. This theme focuses on stocks that stand to benefit from stimulative monetary and fiscal policy -- such as the interest rate cuts that have occurred to date, as well as the tax rate reductions and rebates recently passed by the Bush administration. Financial and early cycle stocks, such as retailers, are groups that we are tracking within this theme. In selecting individual stocks for the portfolio, we seek several important company characteristics, including the capability to exceed consensus earnings expectations, intrinsic value (always a constant), and management that can effect solid operational change. LOOKING AHEAD We remain hopeful for an economic rebound due to the monetary and fiscal stimulus that has occurred to date. However, we do expect the negative corporate earnings environment to continue for the rest of 2001, since there is typically a lag between interest rate reductions and a recovery in the economy. We appreciate your continued confidence in Columbia Common Stock Fund. Guy W. Pope On behalf of the Columbia Investment Team TOP TEN HOLDINGS % of Net Assets
6/30/01 12/31/00 ------- -------- Pfizer, Inc. 4.9 6.2 Citigroup, Inc. 4.2 4.5 General Electric Co. 3.7 3.2 Microsoft Corp. 3.5 1.7 AOL Time Warner, Inc. 2.9 2.2 Baxter International, Inc. 2.4 1.5 Pharmacia Corp. 2.3 3.3 Waste Management, Inc. 2.2 0.7 Tyco International, Ltd. 2.2 2.4 American International Group, Inc. 2.2 3.5
------------------------ TOP FIVE SECTORS % of Net Assets
6/30/01 12/31/00 ------- -------- Technology 18.7 19.3 Finance 17.6 20.6 Health Care 13.3 18.9 Media/Telecom Services 13.0 8.7 Basic Industries & Mfg. 12.1 10.7
5 7 INVESTMENT REVIEWS -------------------------------------------------------------------------------- COLUMBIA GROWTH FUND AVERAGE ANNUAL TOTAL RETURNS As of June 30, 2001
RUSSELL S&P 1000 CGF 500 GROWTH ------ ------ ------- 1 Year -28.17% -14.84% -36.17% 5 Years 12.19% 14.47% 11.99% 10 Years 14.49% 15.10% 13.76% 20 Years 14.79% 15.31% 13.96%
GROWTH OF $10,000 OVER 20 YEARS [LINE GRAPH]
PERIOD ENDED COLUMBIA GROWTH FUND S&P 500 RUSSELL 1000 GROWTH ------------ -------------------- ------- ------------------- 6/30/81 10000 10000 10000 6/30/82 9030 8849 8459 6/30/83 17587 14237 14214 6/30/84 14363 13568 12127 6/30/85 19351 17743 15481 6/30/86 24956 24081 21962 6/30/87 28751 30132 26102 6/30/88 28487 28056 23176 6/30/89 33019 33805 27948 6/30/90 38576 39372 34222 6/30/91 40814 42306 37593 6/30/92 45111 47974 42717 6/30/93 55555 54513 46574 6/30/94 56633 55282 46453 6/30/95 70009 69694 60626 6/30/96 88891 87822 77498 6/30/97 110198 118287 101770 6/30/98 147334 153974 133696 6/30/99 181000 189003 170168 6/30/00 219897 202706 213850 6/30/01 157994 172605 136497
Past performance is not predictive of future results. The S&P 500 is an unmanaged index generally considered representative of the U.S. stock market. The Russell 1000 Growth Index is an unmanaged index that measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values (the Russell 1000 Index measures the performance of the 1000 largest U.S. companies based on total market capitalization). FUND PERFORMANCE For the six months ended June 30, 2001, Columbia Growth Fund returned - 13.83%, modestly exceeding the -14.24% return of the Russell 1000 Growth Index. These returns resulted from an environment characterized by a significant deterioration in expected corporate profit growth and punctuated by a sharp rally based on sentiment that the worst of the earnings deterioration may have ended. Over the long term, the Fund's average annual returns have kept ahead of the Index: for instance, for the 10-year period ended June 30, the Fund returned 14.49% compared to 13.76% for the Index. CONSUMER GROWTH ISSUES AID PERFORMANCE Despite the sharp second quarter rebound, technology stocks generally lost value in the six-month period ended June 30. Declines in EMC, Oracle and Veritas Software negatively affected Fund performance, and we reduced our holdings in these stocks. However, these are all fundamentally solid companies, whose prospects are expected to regain their prior luster when signs of an economic recovery become clear. As the Federal Reserve has eased monetary policy to reinvigorate the economy, various consumer growth issues in the Fund have performed well. Gains were posted by Lowe's Cos., a retailer of home improvement products; Clear Channel Communications, a diversified media company including radio, outdoor advertising, and entertainment; and AOL Time Warner, an "Internet-powered" media and communications company. Also, as the health care sector has been relatively unaffected by the economy's ups and downs, holdings such as Johnson & Johnson and Baxter International performed well for the Fund. THE PROFIT OUTLOOK Since the market for growth stocks peaked in early 2000, fears of rising inflation have been replaced by fears of a world economic recession and a continued decline in corporate earnings. Indeed, this country's long running economic and profit boom caused many to dismiss the economy's historically cyclical nature as a thing of the past. As the significant contraction in economic growth and the large decline in corporate profits show, these sources of long-term stock price appreciation are most definitely cyclical. 6 8 INVESTMENT REVIEWS -------------------------------------------------------------------------------- On that note, despite the recent disappointing performance of growth stocks, we believe that this economic and profit downturn will eventually give way to a rebound. Easier monetary conditions, fiscal stimulus in the form of tax cuts, and a sharp contraction in inventories have together set the stage for a possible recovery later this year and into 2002. Once investors gain confidence in this prospect, we believe stock prices will respond by moving higher. POSITIONING THE FUND Columbia Growth Fund seeks to own companies with superior long-term earnings growth, high and/or rising returns on invested capital, strong and defensible competitive positions, and relatively sustainable valuations. While we are confident that the economic and profit downturns will reverse, we believe that various factors combine to make the shape, timing and vigor of the recovery uncertain. Until the economic picture gains clarity, the Fund will remain diversified in consumer, health care, technology and other growth companies. While this is certainly a difficult period for growth stocks, keep in mind that growth stocks are an important element of a well diversified portfolio. By maintaining a long-term perspective and riding out market lows, investors may be in a better position to benefit when markets recover. Thank you for your continued confidence. Alexander S. Macmillan Portfolio Manager TOP TEN HOLDINGS % of Net Assets
6/30/01 12/31/00 ------- -------- Microsoft Corp. 5.1 0.9 Pfizer, Inc. 5.0 6.2 General Electric Co. 4.8 2.6 AOL Time Warner, Inc. 4.1 2.6 Tyco International, Ltd. 3.9 4.4 Citigroup, Inc. 3.6 3.8 Wal-Mart Stores, Inc. 3.1 3.2 Intel Corp. 2.8 1.8 American International Group, Inc. 2.5 3.7 Pharmacia Corp. 2.3 2.9
------------------------ TOP FIVE SECTORS % of Net Assets
6/30/01 12/31/00 ------- -------- Technology 34.0 29.1 Health Care 16.0 18.9 Finance 12.0 16.4 Media/Telecom Services 11.7 8.8 Basic Industries & Mfg. 10.6 10.5
7 9 INVESTMENT REVIEWS -------------------------------------------------------------------------------- COLUMBIA INTERNATIONAL STOCK FUND AVERAGE ANNUAL TOTAL RETURNS As of June 30, 2001
MSCI CISF EAFE ------ ------- 1 Year -22.08% -23.32% 5 Years 7.08% 3.19% Since Inception (10/1/92) 9.28% 7.58%
GROWTH OF $10,000 SINCE INCEPTION [LINE GRAPH]
PERIOD ENDED COLUMBIA INTERNATIONAL STOCK FUND MSCI EAFE ------------ --------------------------------- --------- 10/1/92 10000.00 10000.00 12/31/92 10060.00 9623.00 12/31/93 13417.00 12794.00 12/31/94 13086.00 13825.00 12/31/95 13760.00 15422.00 12/31/96 16042.00 16403.00 12/31/97 17882.00 16740.00 12/31/98 20177.00 20144.00 12/31/99 31865.00 25643.00 12/31/00 24651.00 22063.00 6/30/01 21844.00 18889.00
Past performance is not predictive of future results. The MSCI EAFE Index is an unmanaged, market-weighted index composed of companies representative of the market structure of 20 developed market countries in Europe, Australasia and the Far East. FUND PERFORMANCE International markets continued to struggle in the first half of 2001. Columbia International Stock Fund returned -11.37% for the six months ended June 30, ahead of the MSCI EAFE Index's return of -14.40%. Since the Fund's inception in 1992, its average annual returns have also kept ahead of the Index: the Fund has returned 9.28% while the MSCI EAFE has returned 7.58% for the same period. THE GLOBAL ENVIRONMENT We began the year with an emphasis on Europe and a de- emphasis on Japan, due to a belief that the Euro was recovering from an 18-month decline and that the Japanese Yen was likely to weaken. However, we have become increasingly concerned with the continued deterioration in European economic conditions. For instance, the largest European economy, Germany, has shown pronounced weakness in manufacturing. Also, the Euro has yet to exhibit clear signs of strength, and European economies are being negatively impacted by the slowdown in the U.S. Therefore, in the first quarter, we began selling off some European holdings and funneling proceeds into Japan. While the Japanese economy has also lost its upward momentum, we have been considerably encouraged by several recent developments. In the first quarter, the Bank of Japan unexpectedly reversed its monetary policy, de-emphasizing interest rate levels and concentrating on removing deflation, since consumer prices have been falling for some time. The Bank should be substantially more accommodative moving forward, allowing more money to flow into the economy in an effort to restore growth and consumer confidence. Also, Japan's largest political party elected a new prime minister, Junichiro Koizumi, who has attracted enormous public support. He represents a new approach to resolving Japan's long standing banking crisis and restructuring the government's fiscal policy. He may serve as the catalyst for renewing and reinvigorating Japan's economy. AREAS OF STRENGTH In Europe, we have maintained a significant weighting in the United Kingdom, where authorities have responded to lackluster growth by lowering interest rates. Generally, in Europe, we have favored financial stocks and defensive growth areas, such as pharmaceuticals and food retailers. Some holdings that have performed particularly well for us include Elan Corp., an Irish specialty pharmaceutical 8 10 INVESTMENT REVIEWS -------------------------------------------------------------------------------- company; Grupo Dragados, a major European construction company based in Spain; and Peugeot, a French auto manufacturer that has successfully introduced a new line of automobiles. In Japan, we have been targeting corporations positioned to benefit from a weakening Yen, such as auto manufacturers Toyota, Honda and Nissan. Also, restructuring is becoming an attractive theme. For instance, Tokyu Corp., whose business involves land transportation, real estate and retailing, has been particularly aggressive; it has been a holding in the portfolio for over one year. Also, we started investing in Korea, an emerging market, last October and have realized some very good performance, particularly from Pacific Corp., a cosmetics company. We have more than doubled our holdings in this company, and it is now one of the portfolio's largest positions. STOCKS HINDERING PERFORMANCE Although we substantially reduced our exposure to the telecommunications sector during the period, the Fund was negatively impacted by its exposure to this sector. For example, Vodafone, the largest company in the United Kingdom by market value and a leading global cellular phone company, remains in the portfolio. We are confident in Vodafone's financial strength and long-term outlook, but its shares continue to struggle. Likewise, in Japan we maintain investments in Nippon Telegraph & Telephone and NTT DoCoMo, the leading telephone and mobile companies, respectively. Both holdings demonstrated weakness during the period. MOVING FORWARD Looking ahead, international markets are expected to perform modestly until economic growth picks up. We expect the U.S. dollar to weaken in coming months, and a weaker dollar would enhance the portfolio's performance. Also, depending upon the success of new initiatives in Japan, this major stock market could become a strong source of positive performance. We appreciate your continued confidence in Columbia International Stock Fund. James M. McAlear Portfolio Manager TOP TEN HOLDINGS % of Net Assets
6/30/01 12/31/00 ------- -------- Pacific Corp. (Korea) 1.3 0.5 Barclays plc (United Kingdom) 1.3 1.0 JGC Corp. (Japan) 1.2 -- Tokyu Corp (Japan) 1.2 1.1 Royal Bank of Scotland plc (United Kingdom) 1.2 1.1 Nestle SA (Switzerland) 1.2 1.2 GlaxoSmithKline plc (United Kingdom) 1.1 1.5 Grupo Dragados SA (Spain) 1.1 1.0 The Nomura Securities Co., Ltd. (Japan) 1.1 0.4 Toyota Motor Corp. (Japan) 1.1 --
------------------------ TOP FIVE COUNTRIES % of Net Assets
6/30/01 12/31/00 ------- -------- Japan 25.5 12.4 United Kingdom 22.0 22.9 France 8.5 10.9 Korea 5.4 3.2 Italy 5.2 5.6
9 11 INVESTMENT REVIEWS -------------------------------------------------------------------------------- COLUMBIA SPECIAL FUND AVERAGE ANNUAL TOTAL RETURNS As of June 30, 2001
Russell Russell Midcap CSF Midcap Growth ------- ------- ------- 1 Year -21.21% 0.95% -31.51% 5 Years 11.68% 14.23% 12.29% 10 Years 15.81% 15.80% 14.25%
GROWTH OF $10,000 OVER 10 YEARS [LINE GRAPH]
COLUMBIA SPECIAL FUND RUSSELL MIDCAP RUSSELL MIDCAP GROWTH --------------------- -------------- --------------------- 6/30/91 10000 10000 10000 6/30/92 11643 11844 11217 6/30/93 15012 14561 13308 6/30/94 16247 14755 13583 6/30/95 19551 18207 17173 6/30/96 24980 22302 21225 6/30/97 27116 27423 24962 6/30/98 30880 34276 30958 6/30/99 33940 38152 37246 6/30/00 55075 42975 55336 6/30/01 43394 43382 37903
Past performance is not predictive of future results. The Russell Midcap Index is an unmanaged index that measures the performance of the 800 smallest companies in the Russell 1000 Index, which represent approximately 24% of the total market capitalization of the Russell 1000 Index. The Russell Midcap Growth Index is an unmanaged index that measures the performance of those Russell Midcap companies with higher price-to-book ratios and higher forecasted growth values. FUND PERFORMANCE For the six months ended June 30, 2001, Columbia Special Fund returned -15.66%. In comparison, the Russell Midcap Growth Index returned -12.96% and the Russell Midcap Index returned -1.96%. While the first quarter of the year was extremely difficult for mid-cap growth stocks, the Fund was able to recover some lost ground in a second quarter rally as technology stocks rebounded from their February and March lows. AN UNFORGIVING FIRST QUARTER After strongly outperforming its benchmarks in 2000, the Fund took its lumps early in 2001. In particular, software valuations fell sharply due to lowered earnings visibility and rapid deterioration in corporate spending on information technology. Also, after the Fed's first rate cut in January, both energy and health care stocks turned down as investors moved away from these more defensive areas and toward more cyclical technology companies, such as semiconductors, in hopes of a Fed-induced economic rebound. Later in the period, as the economy continued to shrink and technology hopes faded, health care stocks rebounded, since their earnings are relatively insulated from changes in the economy. After having a strong 2000, the energy sector began to experience difficulty as prices for oil and natural gas started to weaken in the face of lower demand. Despite aggressive Fed easing and potential stimulation from the recent tax cut, stock valuations remain under pressure, thanks to continued concerns about a bleak corporate earnings outlook. The economic boom of the late 1990s resulted in excessive capital spending, especially by technology firms. As a result, companies are experiencing overcapacity in both equipment and workforce. Many are now in the process of reducing spending to a level consistent with a more sober economic outlook. Valuation pressures will likely continue until investors gain confidence in an economic recovery and, most importantly, in corporate earnings. STRONG PERFORMERS IN THE PERIOD Health care and consumer-related stocks were generally strong for the period. Earnings in the health care sector have held up well thanks to their relative insensitivity to the 10 12 INVESTMENT REVIEWS -------------------------------------------------------------------------------- economy. Despite the slower economy, the American consumer continues to spend on housing and automobiles. The strongest performers for the portfolio during the first half of the year were ANDRX Group, a maker of generic and specialty drugs; Tenet Healthcare, which operates acute care hospitals; and Apollo Group, which provides adult education courses, both on their own campuses and over the Internet. In addition, the Fund's retail stocks lifted performance, largely due to good stock selection. ENERGY STOCKS HAMPER PERFORMANCE In contrast to very strong performance in 1999 and 2000, energy was one of the poorest sectors for the Fund in the first half of 2001, especially in the second quarter. Falling natural gas prices were the main culprit in reducing the earnings visibility for energy producers and thus for the service companies that depend on the producers' exploration budgets. We reduced our energy sector weighting considerably due to this deterioration in the outlook. VOLATILITY LIKELY TO CONTINUE We expect the market to continue to be volatile, as investors' hopes for a recovery in corporate earnings fluctuate with every new piece of economic data and company announcements. Inventories are currently in the process of being reduced, an activity that often signals a healthier future. However, the timing and strength of a recovery are what is crucial for the market's performance in the second half of this year. We currently expect to see domestic stabilization in revenue and earnings by the fourth quarter, which should put the market on more stable footing. In the meantime, we continue to seek companies with the best future growth prospects and reasonable valuations for the portfolio. Thank you for your continued confidence in Columbia Special Fund. Richard J. Johnson Portfolio Manager TOP TEN HOLDINGS % of Net Assets
6/30/01 12/31/00 Altera Corp. 2.9 0.8 Nabors Industries, Inc. 2.2 3.4 Transocean Sedco Forex, Inc. 2.1 1.0 Noble Drilling Corp. 2.0 1.7 Univision Communications, Inc. (Class A) 1.9 1.4 Tenet Healthcare Corp. 1.8 3.5 Synopsys, Inc. 1.8 -- Martin Marietta Materials, Inc. 1.7 -- IMS Health, Inc. 1.7 1.3 ANDRX Group 1.6 --
------------------------ TOP FIVE SECTORS % of Net Assets
6/30/01 12/31/00 Technology 23.0 23.4 Health Care 22.3 23.2 Consumer Cyclical 13.9 13.1 Media/Telecom Services 12.6 6.9 Energy 8.1 13.1
11 13 INVESTMENT REVIEWS -------------------------------------------------------------------------------- COLUMBIA SMALL CAP FUND AVERAGE ANNUAL TOTAL RETURNS As of June 30, 2001
Russell Russell 2000 CSCF 2000 Growth ------- ------- ------- 1 Year -15.49% 0.57% -23.35% Since Inception (10/1/96) 20.46% 10.17% 5.27%
GROWTH OF $10,000 SINCE INCEPTION [LINE GRAPH]
COLUMBIA SMALL CAP FUND RUSSELL 2000 RUSSELL 2000 GROWTH ----------------------- ------------ ------------------- 10/1/96 10000 10000 10000 12/31/96 10762 10520 10026 12/31/97 14432 12872 11324 12/31/98 15109 12544 11464 12/31/99 24045 15211 16404 12/31/00 25452 14752 12723 6/30/01 23989 15762 12730
Past performance is not predictive of future results. The Russell 2000 is an unmanaged index generally considered representative of the market for small, domestic stocks. The Russell 2000 Growth Index is an unmanaged index that measures performance of those Russell 2000 companies with higher price-to-book ratios and higher forecasted growth values. FUND PERFORMANCE For the six months ended June 30, 2001, Columbia Small Cap Fund returned -5.76%, compared with 0.03% for the Russell 2000 Growth Index and 6.85% for the Russell 2000 Index. Since the Fund's inception, however, it has outperformed both indices. The Fund has returned 20.46% on an average annual basis since its inception in 1996. For the same period, the Russell 2000 Index has returned 10.17% and the Russell 2000 Growth Index has returned 5.27%. MARKET ENVIRONMENT Small cap growth stocks corrected significantly in the year 2000, and continued to struggle in the first quarter of 2001 as investor preference favored value stocks. In a second quarter April rally, however, market sentiment turned as small-cap growth stocks rebounded versus value stocks, benefiting the Fund's growth bias. Technology stocks, in particular, bounced back from their lows of February and March and were able to regain some lost ground. Continued concern over a very bleak earnings outlook is pressuring stock valuations, despite aggressive Fed easing and possible stimulation from the tax cut. The boom times of the late 1990s caused excessive capital spending (especially in technology), resulting in overcapacity in both equipment and workforce. Companies are now in the process of ratcheting down spending due to a more sober outlook for the economy. This pressure on valuations will likely continue until the market gains confidence in the timing and strength of a recovery in the economy and, most importantly, in corporate earnings. STRONG PERFORMERS The Fund benefited from various holdings throughout the period, including health care, education and retail stocks. Health care proved consistently strong as earnings for this sector are relatively insensitive to the economy. The Fund's return was boosted by our holdings in Caremark (a pharmacy benefit manager), DaVita (a renal dialysis provider) and Professional Detailing (outsourced drug sales). Education stocks such as Apollo Group, Strayer Education and Sylvan Learning Systems were also quite strong. Finally, we were pleased with the contributions made by our retail holdings in Williams-Sonoma, Michaels Stores, American Eagle Outfitters and AnnTaylor Stores. 12 14 INVESTMENT REVIEWS -------------------------------------------------------------------------------- Early in the second quarter, technology and biotech were the strongest sectors for the Fund. Retek, a developer of enterprise software for retailers, did particularly well as it reaffirmed confidence in its growth forecasts. Alkermes, which focuses on drug delivery technology, rallied on news of clinical progress with a drug being developed in partnership with Johnson & Johnson. ENERGY FALLS BACK After boosting the Fund's performance in 1999 and 2000, the energy sector performed poorly and hampered performance in the period. Falling natural gas prices were the main culprit in reducing the earnings visibility for energy producers. In turn, service companies that depend on the producers' exploration budgets also experienced reduced earnings visibility. We decreased our energy weighting considerably during the period, since the commodity (oil and natural gas) price risk may continue to erode earnings potential in the near term. LOOKING AHEAD Market volatility is expected to continue as investors assess new announcements of economic data and corporate earnings. The timing and strength of an economic recovery in the second half of the year is uncertain. Anticipated stabilization in revenue and earnings has been pushed out from the third to the fourth quarter this year; this revision in expectations has occurred in recent weeks, causing the current market weakness. When stabilization eventually occurs, however, it should put the market on better footing. In the meantime, we continue to seek companies with the best future growth prospects and reasonable valuations. We appreciate your interest in Columbia Small Cap Fund. Richard J. Johnson Portfolio Manager TOP TEN HOLDINGS % of Net Assets
6/30/01 12/31/00 Eclipsys Corp. 2.3 1.1 Atlantic Coast Airlines Holdings, Inc. 1.9 1.3 DaVita, Inc. 1.7 1.5 Sylvan Learning Systems, Inc. 1.7 0.2 Electronics for Imaging, Inc. 1.6 -- Williams-Sonoma, Inc. 1.6 0.8 Retek, Inc. 1.6 1.5 Tetra Tech, Inc. 1.6 2.0 Lattice Semiconductor Corp. 1.5 0.7 Veritas DGC, Inc. 1.5 1.6
------------------------ TOP FIVE SECTORS % of Net Assets
6/30/01 12/31/00 Technology 25.8 23.7 Health Care 25.7 28.4 Consumer Cyclical 22.7 13.7 Energy 9.8 16.2 Media/Telecom Services 4.8 0.9
13 15 INVESTMENT REVIEWS -------------------------------------------------------------------------------- COLUMBIA REAL ESTATE EQUITY FUND AVERAGE ANNUAL TOTAL RETURNS As of June 30, 2001
CREF NAREIT ------ ------ 1 Year 19.48% 24.43% 5 Years 13.51% 11.03% Since Inception (4/1/94) 12.70% 10.50%
GROWTH OF $10,000 SINCE INCEPTION [LINE GRAPH]
PERIOD ENDED CREF NAREIT ------------ ---- ------ 4/1/94 10000.00 10000.00 12/31/94 10176.00 9978.00 12/31/95 11892.00 11502.00 12/31/96 16446.00 15558.00 12/31/97 20515.00 18710.00 12/31/98 17985.00 15434.00 12/31/99 17545.00 14721.00 12/31/00 22605.00 18603.00 6/30/01 23938.00 20730.00
Past performance is not predictive of future results. The National Association of Real Estate Investment Trusts Index (NAREIT) is an unmanaged index that tracks performance of all publicly traded equity REITs. FUND PERFORMANCE While most equity markets suffered, the returns of real estate investment trusts (REITs) continued to be strong in the first half of 2001, fueled by their low valuations, stability and healthy cash flows. For the six months ended June 30, 2001, Columbia Real Estate Equity Fund returned 5.91%. The NAREIT Index returned 11.45%. Over the long term, the Fund has outperformed its benchmark. For the five years ended June 30, the Fund posted an average annual return of 13.51%, compared to an 11.03% average annual return for the NAREIT Index. The Fund's underperformance in the first half of the year was due to a sharp shift in market sentiment in the first quarter, as investors favored small cap, high dividend yielding names, which are underrepresented in the Fund. This trend appeared to be shifting, as was evidenced by the marked improvement in the Fund's relative performance in the second quarter. MARKET CONDITIONS The balance of supply and demand for real estate suggests that stable forward growth rates coupled with low valuations bode well for REIT performance. The risks posed by a weakening economy (declining occupancies and rents) are now being felt in the form of modestly declining earnings estimates for 2001. However, these risks are mitigated by moderating new supply levels, an aggressive Fed seeking to boost economic growth in 2002, and contractual lease obligations (which protect near- to intermediate-term cash flows). Historically, the sectors best positioned to benefit from the Fed's easing actions are lodging and retail, as the economy responds to heightened demand spurred by lower interest rates. Both of these sectors have outperformed the NAREIT Index for the year to date, and our weightings in these sectors contributed strongly to the Fund's performance. The Fund was hurt, however, by the underperformance of the apartment, industrial and office sectors, which suffered from higher relative valuations (compared to lodging and retail) and perceptions of declining growth rates due to a weak economy. We did not reduce the Fund's weighting in these sectors fast enough to prevent results that lagged the Index, particularly in the first quarter. As the second quarter came to a close, the office sector began to improve as concerns over fundamentals eased, and we began adding back to positions. 14 16 INVESTMENT REVIEWS -------------------------------------------------------------------------------- SMALLER CAP NAMES DOMINATE Performance in the first half of 2001 has been dominated by smaller cap, high dividend yielding companies, largely in the retail and health care sectors. A powerful rally was produced by a combination of improved fundamentals -- such as lower short-term interest rates for the retail sector and rising government reimbursements for the health care sector -- and low earnings multiples (relative to other REITs). However, the valuation spread has now narrowed significantly. Given the higher growth rates that higher quality, higher market cap companies can generate, we anticipate a reversal in this performance trend. The best performers in the Fund included two retail companies: Simon Property Group and Pan Pacific Retail. Both holdings were helped by starting the year with low earnings multiples and perceptions of improving prospects. Conversely, the worst performers started the period with high earnings multiples and had moderating forward expectations; these companies include Boston Properties (an office REIT) and AvalonBay (an apartment REIT). THE OUTLOOK A favorable environment for REITs has been fostered by attempts to maintain a healthy economic environment through both fiscal and monetary policy, a low level of new supply, and attractive valuations. The Fund will continue to focus on strong, experienced management teams with the best prospects for sustainable future growth. We appreciate your interest in Columbia Real Estate Equity Fund. David W. Jellison Portfolio Manager TOP TEN HOLDINGS % of Net Assets
6/30/01 12/31/00 Equity Office Properties Trust 7.1 5.7 Cousins Properties, Inc. 5.9 6.3 Simon Property Group, Inc. 5.2 4.7 Starwood Hotels & Resorts Worldwide, Inc. 5.1 -- General Growth Properties, Inc. 5.0 4.4 Spieker Properties, Inc. 4.9 6.4 Vornado Realty Trust 4.7 6.2 TrizecHahn Corp. 4.7 -- Equity Residential Properties Trust 4.7 4.6 Security Capital Group, Inc. (Class B) 3.6 1.4
------------------------ TOP FIVE SECTORS % of Net Assets
6/30/01 12/31/00 Office 24.8 24.9 Industrial 17.9 24.9 Retail 17.8 9.0 Residential 14.8 17.7 Lodging 11.0 3.2
15 17 INVESTMENT REVIEWS -------------------------------------------------------------------------------- COLUMBIA TECHNOLOGY FUND "Through this challenging investment environment, we will continue to seek companies with strong management, superior long-term growth opportunities, and dominant market share positions at what we judge to be sustainable valuations." Steven N. Marshman Co-Manager FUND PERFORMANCE For the six months ended June 30, 2001, Columbia Technology Fund posted a total return of -15.53%. In comparison, the Merrill Lynch 100 posted a total return of -19.09% for the same period.* Since the Fund is still relatively new, no historical performance is illustrated below. DISAPPOINTING FIRST HALF Technology stocks continued to experience revenue and earnings disappointments during the first half of 2001. This was true for all sectors of technology, including telecommunications equipment, software and semiconductors. Telecommunications equipment companies suffered as incumbent service providers reduced their capital spending budgets. In addition, some emerging service providers have filed for bankruptcy. Software companies have suffered due to a broad reduction in IT budgets. In many instances, the IT budget reductions have been a result of the difficult economic conditions faced by virtually every corporation. Finally, semiconductor companies have seen a drastic drop in demand for their product. Despite continued fundamental weakness, technology stocks were able to outperform the broader market during the latter half of the period. This was particularly evident in the semiconductor sector, where the Fund has a significant weighting. An overall recovery in this sector was anticipated in the third quarter, but is now more likely to occur in late 2001 or even in 2002, much slower than previously expected. In the software sector, stock performance also improved as certain companies have begun to see a potential for bottoming in IT budgets. STRONG PERFORMERS Despite the difficult market environment, the Fund experienced strong performance from certain holdings. LTX Corporation, Advent Software and eBay were the Fund's strongest performers during the first half of the year. LTX Corporation, a manufacturer of semiconductor test equipment, has developed an innovative product called Fusion, which is being received with enthusiasm by the semiconductor sector. Advent Software, a provider of portfolio management software, has been a consistent 35% revenue growth company and provides software for financial institutions to deal with the complex real time investing environment. Finally, eBay, the online auction company, is one of the few Internet models that has proven to be profitable and has provided visible growth. 16 18 INVESTMENT REVIEWS -------------------------------------------------------------------------------- SOME POOR PERFORMERS In the difficult market environment, a number of technology companies suffered, some more than others. In the portfolio, Gilat Satellite, Research in Motion and Mercury Interactive were some of the most disappointing performers during the first half. Gilat, a provider of very small aperture satellites (or VSATs), was not able to transform its technology to the satellite broadband market as scheduled. Research in Motion, the manufacturer of the Blackberry Pager, was unable to meet its revenue projections. We sold off our holdings in both Gilat and Research in Motion during the period. With Mercury Interactive, a software company that provides integrated performance management solutions to help businesses test and monitor their Internet applications, we sold off our holdings before repurchasing the stock at a lower price later in the period. Like Research in Motion, Mercury Interactive had difficulty meeting revenue projections. OUR STRATEGY AHEAD Looking forward, we continue to invest in companies with strong management, superior long-term growth opportunities, and dominant market share positions at what we believe are sustainable valuations. Although the recent market environment has lowered stock valuations, as a group, technology stocks still are not considered inexpensive. We believe we have positioned the Fund to take advantage of any shift in the market environment as companies return to growth. Thank you for your interest in Columbia Technology Fund. Chad L. Fleischman and Steven N. Marshman Portfolio Managers TOP TEN HOLDINGS % of Net Assets
6/30/01 12/31/00 Micrel, Inc. 2.3 -- National Semiconductor Corp. 2.3 -- Electronics for Imaging, Inc. 2.3 -- Computer Associates International, Inc. 2.3 -- Electronic Arts, Inc. 1.9 1.8 DST Systems, Inc. 1.9 0.3 International Business Machines Corp. 1.9 -- Retek, Inc. 1.8 -- i2 Technologies, Inc. 1.8 -- Siebel Systems, Inc. 1.8 --
------------------------ TOP FIVE INDUSTRIES % of Net Assets
6/30/01 12/31/00 Semiconductors & Components 19.9 10.2 Enterprise Software 19.8 15.4 Semiconductor Equipment 9.9 2.3 Information Services 9.5 8.2 Medical Technology 8.0 10.9
* Past performance is not predictive of future results. The Merrill Lynch 100 is an equally-weighted, unmanaged index of 100 leading technology stocks. Fund performance includes a voluntary reimbursement of Fund expenses by the Advisor. Absent these reimbursements, total returns would have been lower. 17 19 INVESTMENT REVIEWS -------------------------------------------------------------------------------- COLUMBIA STRATEGIC VALUE FUND "Using input from Columbia's entire investment team, we target certain groups of stocks that are expected to benefit from trends or changes in the overall investment environment." Robert A. Unger Portfolio Manager FUND PERFORMANCE For the first six months of 2001, Columbia Strategic Value Fund returned 24.40%. In comparison, the Lipper Multi-Cap Value Funds Index returned 4.22%.* Since the Fund is still relatively new, no historical performance is illustrated below. MARKET FAVORS VALUE STOCKS The Fund has fared well this year in a difficult market environment. Market turbulence spurred investors to move away from higher-priced growth stocks (such as technology) and shift their focus to lower risk stocks and areas where profit margins could expand (such as energy, insurance and waste management). During the second quarter, however, the market compressed, resulting in much less of a disparity in valuations between growth and value stocks. The recent cycle of Fed easing and the new tax law are expected to boost economic activity and stimulate consumer spending. Industries like soft goods retailers (clothing), appliance manufacturers and mobile homes are expected to benefit. In addition, infrastructure industries like transportation, cement and natural gas pipeline may offer some opportunity. These areas were largely ignored in the late 1990s when capital spending was primarily directed to technology. Since federal and state governments are now refocusing their priorities, capital spending on infrastructure is poised to catch up over the next two or three years. LEADERS IN PERFORMANCE The Fund benefited from strong performance in the manufactured housing sector, due to the substantial reduction in financing costs and an anticipated improvement in demand. Champion Enterprises, Clayton Homes and Fleetwood Enterprises (which also produces recreational vehicles) all appreciated during the first half of the year. Property and casualty insurers, such as SAFECO, Progressive and Hartford Financial Services, also performed well as price increases on policy premiums have benefited profitability. STRONG DOLLAR HAMPERS WORLD PERFORMANCE The continued strength of the U.S. dollar negatively impacted the competitiveness of many basic industries companies in overseas markets. In particular, we saw some disappointing performance from Parker-Hannifin Corporation, a worldwide manufacturer of motion control systems. Westvaco Corporation, which serves over 70 countries with its products of packaging, paper and specialty chemicals, also 18 20 INVESTMENT REVIEWS -------------------------------------------------------------------------------- struggled, as did Eastman Chemical, a global chemical company that manufactures and sells chemicals, plastics and fibers. OUR STRATEGY We find value in all sectors of the stock market. Individual stocks in the portfolio range from small-cap to large-cap. We seek companies that demonstrate improving cash flow and profit margins, and returns on invested capital. We also evaluate company management, financial condition, industry dynamics and earnings growth. Typically, about two-thirds of the portfolio is invested in traditional value stocks, with the remainder invested in shorter-term growth opportunities or special situations. In addition, we do look overseas for some buying opportunities, as certain international stocks represent some of the most undervalued equities relative to their growth rates. Thank you for your confidence in Columbia Strategic Value Fund. Robert A. Unger Portfolio Manager TOP TEN HOLDINGS % of Net Assets
6/30/01 12/31/00 Waste Management, Inc. 1.6 -- Whirlpool Corp. 1.4 -- Hartford Financial Services Group, Inc. 1.3 1.5 Tupperware Corp. 1.2 -- SAFECO Corp. 1.1 0.9 Wesco Financial Corp. 1.1 1.2 Minnesota Mining & Manufacturing Co. 1.1 1.9 Sprint Corp. (Fon Group) 1.1 -- Champion Enterprises, Inc. 1.1 -- Federated Department Stores, Inc. 1.1 --
------------------------ TOP FIVE SECTORS % of Net Assets
6/30/01 12/31/00 Technology 13.2 15.2 Finance 12.5 13.5 Consumer Cyclicals 9.6 9.0 Basic Materials 6.9 11.9 Capital Goods 5.8 7.2
* Past performance is not predictive of future results. The Lipper Multi-Cap Value Funds Index reflects equally-weighted performance of the 30 largest mutual funds within its category. 19 21 INVESTMENT REVIEWS -------------------------------------------------------------------------------- COLUMBIA BALANCED FUND AVERAGE ANNUAL TOTAL RETURNS As of June 30, 2001
S&P LEHMAN CBF 500 AGGREGATE ------ ------- --------- 1 Year -8.95% -14.84% 11.23% 5 Years 10.57% 14.47% 7.48% Since Inception (10/1/91) 11.39% 14.98% 7.51%
GROWTH OF $10,000 SINCE INCEPTION [LINE GRAPH]
LEHMAN AGGREGATE BOND COLUMBIA BALANCED FUND S&P 500 INDEX ---------------------- ------- --------------------- 10/1/91 10000.00 10000.00 10000.00 12/31/91 10780.00 10838.00 10507.00 12/31/92 11738.00 11664.00 11285.00 12/31/93 13337.00 12840.00 12385.00 12/31/94 13350.00 13009.00 12023.00 12/31/95 16699.00 17898.00 14244.00 12/31/96 18666.00 22007.00 14761.00 12/31/97 22164.00 29349.00 16185.00 12/31/98 26612.00 37737.00 17592.00 12/31/99 29992.00 45677.00 17448.00 12/31/00 30238.00 41515.00 19477.00 6/30/01 28791.00 38731.00 20183.00
Past performance is not predictive of future results. The S&P 500 is an unmanaged index generally considered representative of the U.S. stock market. The Lehman Aggregate Bond Index is an unmanaged index that represents average market-weighted performance of U.S. Treasury and agency securities, investment-grade corporate bonds, and mortgage-backed securities with maturities greater than one year. FUND PERFORMANCE For the six months ended June 30, 2001, Columbia Balanced Fund returned -4.77%. The Fund was negatively affected by a challenging equity market environment, particularly in the first quarter of the year. THE MARKET ENVIRONMENT The first six months of 2001 posed a difficult equity investment environment for the Fund. A rapid economic slowdown negatively affected the broad market, resulting in increased risk to earnings estimates. In an effort to boost the sluggish economy, the Federal Reserve lowered interest rates. The aggressive rate cuts, combined with oversold conditions, created an environment for a stock market rally in April that lasted through late May. Technology, the hardest hit sector in the current economic slowdown, was able to recover some lost ground, but fundamentals continue to be weak across the sector. On the bond side, the yield curve reverted to a more normal shape, becoming steeper (rising long-term interest rates and falling short-term rates) as the Fed dramatically lowered short-term interest rates. In total, the Fed eased the federal funds rate 2.75% in six moves during the first half of 2001. As a result, yields fell on short-term Treasuries and Treasury bills, while they rose on bonds with longer maturities. The steepness of the yield curve and the current low level of Treasury rates indicate that the bond market feels the Fed does not intend to reduce rates much further. EQUITY PERFORMANCE Despite the challenging investment environment, the Fund's equity performance was enhanced by holdings in the media and consumer cyclical sectors throughout the period. In particular, AOL Time Warner and Waste Management both performed nicely. AOL bounced back from its oversold position in late 2000, and investors became more confident in the company as it demonstrated that earnings expectations would be met. Waste Management is in the second phase of a turnaround. The company is led by a new management team, and it appears that the effort will be successful. Sectors that hampered the Fund's equity performance in the first half included gas and electric utilities, consumer staples and technology. Also, some individual holdings were a drag on performance, such as American Express. The extremely 20 22 INVESTMENT REVIEWS -------------------------------------------------------------------------------- weak capital markets and deteriorating credit markets caught up to the company's financial advisors unit, which comprises approximately 30% of its earnings. Nonetheless, we are encouraged by the management team's aggressive response and believe that the company will emerge from this economic and capital market slowdown with strong earnings growth. FIXED INCOME RESULTS On the bond side of the Fund, our overweighting in corporate bonds, mortgage- backed securities and asset-backed securities all added value during the first six months of 2001. Corporate bonds performed the best and had the most positive impact on the portfolio. AAA-rated commercial mortgage-backed securities helped Fund performance, but due to lower mortgage rates, we slightly reduced our overweighting in mortgage-backed securities. We also traded into securities with better call protection. In addition, we increased our exposure to longer-term issues, moving from an underweighted position to a market weighted position to take advantage of the steeper yield curve, and we added to our position in Treasury Inflation Protected Securities (TIPS) due to their attractive relative yield. Our exposure to TIPS aided the Fund's performance during the period. LOOKING AHEAD We remain hopeful for an economic rebound due to the monetary and fiscal stimulus that has occurred to date. We anticipate that the recent tax relief act passed by the Bush administration, including a small tax credit, should help the economy. Also, we expect the effects of Fed easing to begin to become evident in the third and fourth quarters this year, as well as into 2002. However, we do expect the negative corporate earnings environment to continue for the rest of 2001, since there is typically a lag between interest rate reductions and a recovery in the economy and earnings. In both the equity and fixed income markets, much depends on the strength and timing of a recovery in economic growth, as well as whether the Fed has lowered interest rates enough to renew growth without higher inflation. We appreciate your continued confidence in the Fund. Leonard A. Aplet, Guy W. Pope and Jeffrey L. Rippey On behalf of the Columbia Investment Team TOP TEN HOLDINGS % of Net Assets
6/30/01 12/31/00 Pfizer, Inc. 2.9 3.7 Citigroup, Inc. 2.5 2.6 General Electric Co. 2.2 2.1 Microsoft Corp. 2.1 1.1 AOL Time Warner, Inc. 1.7 1.4 Pharmacia Corp. 1.4 1.8 Baxter International, Inc. 1.4 1.0 Waste Management, Inc. 1.4 0.4 American International Group, Inc. 1.3 1.9 Tyco International, Ltd. 1.3 1.4
PORTFOLIO COMPOSITION % of Net Assets June 30, 2001 [PIE CHART] Common Stocks 57.2% Fixed Income 38.3% Cash 4.5%
December 31, 2000 [PIE CHART] Common Stocks 59.0% Fixed Income 37.8% Cash 3.2%
21 23 INVESTMENT REVIEWS -------------------------------------------------------------------------------- COLUMBIA SHORT TERM BOND FUND AVERAGE ANNUAL TOTAL RETURNS As of June 30, 2001
MERRILL 1-5 MERRILL CSTB GOV'T/CORP 1-3 ----- ----------- ------- 1 Year 8.79% 10.20% 9.02% 5 Years 5.71% 6,80% 6.47% 10 Years 5.92% 6.92% 6.39%
GROWTH OF $10,000 OVER 10 YEARS [LINE GRAPH]
COLUMBIA SHORT TERM BOND MERRILL LYNCH 1-3 YEAR MERRILL LYNCH 1-5 YEAR FUND TREASURY INDEX GOV'T/CORP INDEX ------------------------ ---------------------- ---------------------- 6/30/91 10000 10000 10000 6/30/92 11131 11042 11184 6/30/93 11951 11769 12136 6/30/94 12080 11958 12247 6/30/95 12880 12882 13335 6/30/96 13469 13586 14043 6/30/97 14263 14477 15004 6/30/98 15112 15463 16133 6/30/99 15753 16248 16935 6/30/00 16340 17046 17709 6/30/01 17779 18583 19517
Past performance is not predictive of future results. The Merrill Lynch 1-5 Year Government/Corporate Index has replaced the Merrill Lynch 1-3 Year Treasury Index given the Fund's revised investment strategy. The Merrill Lynch 1-5 Year Government/Corporate Index is an unmanaged index that includes all U.S. government debt with at least $100 million face value outstanding, as well as investment-grade rated corporate debt with at least $100 million face value outstanding and a maturity of 1-5 years. The Merrill Lynch 1-3 Year Treasury Index is an unmanaged index that represents the average return of all Treasury notes with 1- to 3-year maturities. The Advisor has contractually agreed to reimburse the Fund to keep expenses at or below 0.75% of Fund assets. Absent this reimbursement, total returns may have been lower. PERFORMANCE FOR THE FIRST HALF For the first six months of 2001, Columbia Short Term Bond Fund posted a return of 3.87%. In comparison, the Fund's new benchmark, the Merrill Lynch 1-5 Year Government/Corporate Index returned 4.23%, and the Fund's old benchmark, the Merrill Lynch 1-3 Year Treasury Index, returned 3.97%. SHORT-TERM INTEREST RATES DROP U.S. economic growth, as measured by the gross domestic product, has slowed dramatically: it grew at a sluggish 1.1% to 1.2% annual rate for several quarters before dropping to a rate of 0.7% (a preliminary number) in the second quarter of 2001. In an effort to stimulate the economy, the Federal Reserve adopted an easing policy in early January. Over the course of the first six months of the year, the Fed lowered the federal funds rate a total of 2.75% in six moves. As yields fell on short-term Treasuries and Treasury bills, they rose on longer-term bonds, creating a "steeper" yield curve. Historically, a period of Fed easing has boosted the economy. However, it usually takes time for lower interest rates to work their way through the economy. We expect that the effect of lower rates could become evident in the third and fourth quarters of this year and into 2002. In addition, the economy is expected to benefit from the recent tax reduction and tax rebate introduced by the Bush administration. The steepness of the yield curve and the level of Treasury rates indicate that the bond market feels that the Fed may not reduce interest rates much further. The reduction in short rates has contributed to the Fund's performance as price appreciation of the portfolio's securities has increased total return. Most of the Fund's competitive performance was due to solid security selection, rather than market activity as a whole. SECTORS ADDING VALUE Our overweighting in corporate bonds, mortgage-backed securities and asset-backed securities all added value during the first half of the year. Corporate bonds made the most significant positive impact on the portfolio. Due to lower mortgage rates, we scaled back our overweighting in mortgage-backed securities. However, we found that AAA- 22 24 INVESTMENT REVIEWS -------------------------------------------------------------------------------- rated commercial mortgage-backed securities helped the performance of the Fund. Also, we traded into securities with better call protection and added to our position in Treasury Inflation Protected Securities (TIPS). TIPS provided an attractive relative yield and benefited the Fund's return during the period. TREASURIES STRUGGLE Throughout the period, U.S. Treasuries have been the worst performing securities in the bond market. We have been underweighted in this sector in an effort to minimize the negative impact of their underperformance. LOOKING AHEAD We view the near-term environment for bonds as uncertain. There are questions regarding the level of economic growth, whether the Fed has lowered interest rates enough, and whether a resumption of growth will bring higher inflation. Bonds should continue to do well over the longer term, especially the higher yielding sectors such as corporate bonds and mortgage- and asset-backed securities. We appreciate your interest in Columbia Short Term Bond Fund. Leonard A. Aplet and Jeffrey L. Rippey Portfolio Managers PORTFOLIO COMPOSITION % of Net Assets
6/30/01 12/31/00 Asset-Backed Securities 11.6 18.8 Collateralized Mortgage Obligations 17.5 12.4 Corporate Bonds 39.6 37.0 Mortgage Pass-Throughs 14.9 16.0 Treasury/Agency 10.5 12.1 Cash 5.9 3.7
PORTFOLIO QUALITY % of Portfolio Holdings June 30, 2001 [PIE CHART] Aaa 29.7% Treasury/Agency 28.2% A 23.9% Aa 9.3% Baa 8.9%
December 31, 2000 [PIE CHART] Treasury/Agency 33.2% Aaa 30.2% A 18.5% Baa 9.8% Aa 8.3%
As rated by Moody's Investors Service, Inc. 23 25 INVESTMENT REVIEWS -------------------------------------------------------------------------------- COLUMBIA FIXED INCOME SECURITIES AVERAGE ANNUAL TOTAL RETURNS As of June 30, 2001
LEHMAN CFIS AGGREGATE ------ --------- 1 Year 11.35% 11.23% 5 Years 6.99% 7.48% 10 Years 7.80% 7.87%
GROWTH OF $10,000 OVER 10 YEARS [LINE GRAPH]
COLUMBIA FIXED INCOME SECURITIES FUND LEHMAN AGGREGATE BOND INDEX -------------------------------- --------------------------- 6/30/91 10000.00 10000.00 6/30/92 11559.00 11405.00 6/30/93 13030.00 12750.00 6/30/94 12810.00 12584.00 6/30/95 14403.00 14162.00 6/30/96 15113.00 14873.00 6/30/97 16371.00 16085.00 6/30/98 18022.00 17780.00 6/30/99 18321.00 18340.00 6/30/00 19024.00 19179.00 6/30/01 21184.00 21329.00
Past performance is not predictive of future results. The Lehman Aggregate Bond Index is an unmanaged index that represents average market-weighted performance of U.S. Treasury and agency securities, investment-grade corporate bonds, and mortgage-backed securities with maturities greater than one year. FUND PERFORMANCE For the first six months of 2001, Columbia Fixed Income Securities Fund returned 3.54%. In comparison, the Lehman Aggregate Bond Index returned 3.62%. A STEEPER YIELD CURVE After a period in which the yield curve was inverted -- created by rising short-term rates and falling long-term rates -- the yield curve reverted to a more normal shape during the first six months of the year. The curve steepened as the Federal Reserve adopted an easing policy in early January and dramatically lowered short-term interest rates. The Fed eased the federal funds rate a total of 2.75% in six moves thus far in 2001. As a result, yields declined on short-term Treasuries and Treasury bills, while they rose on longer maturity bonds. The Fed's easing policy was prompted by a dramatic slowdown in economic growth. For several quarters, the sluggish economy had been growing at a 1.1% to 1.2% annual rate, before dropping to a rate of 0.7% (a preliminary number) in the second quarter of 2001. Historically, interest rate reductions have been a boon to the economy, but the normal lag time for a change in short-term interest rates to affect the economy is 6 to 12 months. We expect that the effects of the Fed's current easing policy should begin to become evident in the third and fourth quarters this year, as well as into 2002. Also, we anticipate that the recent tax relief act introduced by the Bush administration, including a small tax credit, should help the economy. The steepness of the yield curve and the level of Treasury rates indicate that the bond market believes the Fed does not intend to reduce interest rates much further. For the Fund, the net effect of changes in the level of interest rates was slight. The Fund's competitive performance was primarily attributable to security selection, rather than market activity as a whole. CORPORATES LEAD PERFORMANCE Our overweighting in corporate bonds, mortgage-backed securities and asset-backed securities all added value during the first half of the year. Corporate bonds performed the best and had the most positive impact on the portfolio. Due to lower mortgage rates, we slightly reduced our overweighting in mortgage-backed securities and also traded into securities with better call protection. Our holdings in AAA-rated commercial mortgage-backed securities helped Fund performance. 24 26 INVESTMENT REVIEWS -------------------------------------------------------------------------------- To take advantage of the steeper yield curve, we increased our exposure to longer-term issues, moving from an underweighted position to a market-weighted position. We also added to our position in Treasury Inflation Protected Securities (TIPS) due to their attractive relative yield. Our exposure to TIPS also aided the Fund's performance during the period. UNDERWEIGHTING IN TREASURIES AIDS PERFORMANCE U.S. Treasuries have been the poorest performers in the bond market during the first half of the year. On the whole, the Fund has maintained an underweighting in this sector, which has helped to minimize the negative impact of these securities. Within the Treasury sector, long-term Treasuries have suffered the most, and the Fund's market weighting in this part of the yield curve slightly hampered performance. LOOKING AHEAD Our outlook for bonds during the last half of 2001 is uncertain. Much depends on whether the Fed has lowered interest rates enough to renew a robust level of growth without higher inflation. We anticipate that bonds will continue to perform well over the longer term, especially the higher yielding sectors such as corporate bonds and mortgage-and asset-backed securities. Thank you for your continued confidence in Columbia Fixed Income Securities Fund. Leonard A. Aplet and Jeffrey L. Rippey Portfolio Managers PORTFOLIO COMPOSITION % of Net Assets
6/30/01 12/31/00 Asset-Backed Securities 8.8 7.8 Collateralized Mortgage Obligations 14.6 21.4 Corporate Bonds 43.5 43.5 Mortgage Pass-Throughs 17.0 15.2 Treasury/Agency Obligations 12.9 10.1 Cash 3.2 2.0
PORTFOLIO QUALITY % of Portfolio Holdings June 30, 2001 [PIE CHART] Treasury/Agency 37.2% Aaa 17.9% A 16.4% Baa 13.9% Aa 7.6% Ba 4.8% B 2.2%
December 31, 2000 [PIE CHART] Treasury/Agency 38.6% A 19.3% Aaa 17.1% Baa 11.5% Aa 7.1% Ba 5.7% B 0.7%
As rated by Moody's Investors Service, Inc. 25 27 INVESTMENT REVIEWS -------------------------------------------------------------------------------- COLUMBIA NATIONAL MUNICIPAL BOND FUND AVERAGE ANNUAL TOTAL RETURNS As of June 30, 2001
LEHMAN LIPPER CNMF MUNI GENERAL ----- ------ ------- 1 Year 9.33% 9.98% 9.60% Since Inception (2/24/99) 3.88% 4.92%* 3.66%
GROWTH OF $10,000 SINCE INCEPTION [LINE GRAPH]
COLUMBIA NATIONAL LIPPER GENERAL MUNICIPAL LEHMAN BROTHERS MUNICIPAL MUNICIPAL BOND FUND DEBT FUNDS INDEX BOND INDEX* ------------------- ------------------------ ------------------------- 2/24/99 10000.00 10000.00 10000.00 12/31/99 9607.00 9543.00 9721.00 12/31/00 10651.00 10602.00 10856.00 6/30/01 10915.00 10881.00 11169.00
Past performance is not predictive of future results. The Lehman Brothers Municipal Bond Index is an unmanaged index considered representative of the broad market for investment-grade, tax-exempt bonds with a maturity of at least one year, issued on or after January 1, 1991, with a deal size greater than $50 million and a maturity size of at least $5 million, and having a fixed rate coupon. The Lipper General Municipal Debt Funds Index represents average performance of the 30 largest general municipal debt funds tracked by Lipper Analytical Services, Inc. Performance includes a contractual reimbursement of Fund expenses by the Advisor. Absent these reimbursements, total returns may have been lower. * Performance since 3/1/99 FUND PERFORMANCE For the six months ended June 30, 2001, Columbia National Municipal Bond Fund returned 2.47%. In comparison, the Lipper General Municipal Debt Funds Index returned 2.63% and the Lehman Brothers Municipal Bond Index returned 2.88%. SUPPLY INCREASES Early in the year, the Federal Reserve began easing short-term interest rates in an effort to stimulate the economy. In six moves during the first half of 2001, the Fed lowered rates a total of 2.75%. These aggressive rate cuts have raised concerns that inflation may rise, although evidence of higher inflation has not yet surfaced. Relevant to the municipal bond market, the supply of new issues nationally has been heavy this year. In addition to funding new projects, municipalities are taking advantage of lower interest rates by refunding older issues with lower priced debt. At the same time, demand from retail investors has remained strong for municipal bonds, as they offer a safe haven from volatile equity investments. This high rate of issuance could continue if interest rates remain stable or trend lower. EFFECTS OF TAX RELIEF LEGISLATION In June, President Bush's administration successfully passed federal tax relief legislation. Although a reduction in tax rates would be expected to hurt municipal bond prices (tax-exemption on interest income becomes less valuable), uncertainty related to the extended implementation of the tax cuts, as well as the impact of rate changes after 2010, have left prices relatively unaffected for the time being. Any adjustment to municipal prices related to the change in tax rates is expected to happen gradually and may be rendered insignificant by factors that normally determine municipal bond prices, such as supply, demand, Fed policy, inflation expectations and credit quality. 26 28 INVESTMENT REVIEWS -------------------------------------------------------------------------------- FACTORS INFLUENCING FUND RETURNS Early in the period, lower yields and higher prices boosted returns as weak economic data and Fed rate cuts raised the value of shorter-term fixed income instruments. As the period progressed, overall yields generally moved higher on bonds held in the portfolio; as a result, prices fell and offset some of the interest income earned. Also, the Fund's orientation toward intermediate maturities -- the weakest area of the market in the second quarter -- had a negative impact on returns. OUR FOCUS We continue to look for opportunities to improve the yield, quality and structure of the Fund's holdings. Since short-term interest rates have fallen relative to long-term rates, we are extending maturities slightly. Yields on municipal bonds continue to be attractive on a tax-adjusted basis compared to taxable alternatives, particularly for investors in the highest tax brackets. Thank you for your continued confidence in Columbia National Municipal Bond Fund. Greta R. Clapp Portfolio Manager TOP TEN STATES % of Net Assets
6/30/01 12/31/00 Oregon 27.5 23.9 Washington 13.4 16.8 Texas 12.9 9.0 Alaska 4.7 3.6 Illinois 4.1 4.9 Michigan 3.7 3.6 New York 3.5 4.4 Mississippi 3.5 3.4 Kentucky 2.8 2.6 Oklahoma 2.0 2.9
PORTFOLIO QUALITY PIE CHART % of Portfolio Holdings June 30, 2001 [PIE CHART] Aaa 40.2% Not Rated 21.3% A 16.0% Aa 13.9% Baa 8.6%
December 31, 2000 [PIE CHART] Aaa 38.2% Not Rated 20.5% Aa 17.7% A 14.5% Baa 9.1%
As rated by Moody's Investors Services, Inc. 27 29 INVESTMENT REVIEWS -------------------------------------------------------------------------------- COLUMBIA OREGON MUNICIPAL BOND FUND AVERAGE ANNUAL TOTAL RETURNS As of June 30, 2001
LEHMAN LIPPER CMBF G.O. OREGON ----- ------ ------ 1 Year 9.54% 9.56% 8.46% 5 Years 5.66% 6.48% 5.23% 10 Years 6.06% 7.02% 5.99%
GROWTH OF $10,000 OVER 10 YEARS [LINE GRAPH]
COLUMBIA OREGON MUNICIPAL LEHMAN GENERAL OBLIGATION LIPPER OREGON MUNICIPAL BOND FUND BOND INDEX DEBT FUNDS ------------------------- ------------------------- ----------------------- 6/30/91 10000.00 10000.00 10000.00 6/30/92 10953.00 11127.00 11056.00 6/30/93 12144.00 12426.00 12288.00 6/30/94 12076.00 12499.00 12125.00 6/30/95 12944.00 13526.00 13126.00 6/30/96 13669.00 14399.00 13870.00 6/30/97 14641.00 15591.00 14870.00 6/30/98 15763.00 16869.00 16080.00 6/30/99 16055.00 17360.00 16314.00 6/30/00 16436.00 17985.00 16501.00 6/30/01 18002.00 19708.00 17895.00
Past performance is not predictive of future results. The Lehman 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. The Lipper Oregon Municipal Debt Funds average measures performance of all Oregon municipal bond funds tracked by Lipper Analytical Services, Inc. FUND PERFORMANCE Columbia Oregon Municipal Bond Fund rose 2.87% for the six months ended June 30, 2001. In comparison, the Lehman General Obligation Index rose 2.88% and the Lipper Oregon Municipal Debt Funds Index rose 1.94%. THE MARKET ENVIRONMENT Early in the year, the Federal Reserve began an aggressive policy of easing short-term interest rates in an effort to stimulate economic growth. In six moves during the period, the Fed lowered rates a total of 2.75%. These aggressive rate cuts have raised investor concerns that inflation may appear, even though evidence of higher inflation has not yet surfaced. In Oregon, the supply of new issues has been heavy as municipalities have issued bonds for new projects and as older bonds have been refunded to take advantage of lower interest rates. At the same time, demand from retail investors has remained strong for municipal bonds as investors seek diversification and a safe haven from volatile equity investments. We would expect to see a continued high rate of issuance provided interest rates remain stable or trend lower. AWAITING EFFECTS OF THE TAX CUT A cut in federal tax rates typically hurts municipal bond prices as lower tax rates reduce the value of tax exemption on interest income. However, the recently passed federal tax relief legislation has left prices relatively unaffected due to some uncertainty related to the extended implementation of the tax cuts, as well as the impact of tax rate changes after 2010. Any adjustment to municipal prices related to the new tax legislation will likely happen gradually and may be rendered insignificant by factors that normally determine prices, such as supply, demand, Fed policy, inflation expectations and credit quality. 28 30 INVESTMENT REVIEWS -------------------------------------------------------------------------------- IN THE PORTFOLIO Early in the period, lower yields and higher prices boosted returns as weak economic data and Fed rate cuts raised the value of shorter-term fixed income instruments. As the period wore on, overall yields generally moved higher on bonds held in the portfolio; as a result, prices fell and offset some of the interest income earned. Also, the Fund's orientation toward intermediate maturities -- the weakest area of the market in the second quarter -- had a negative impact on returns versus the benchmark. LOOKING AHEAD We are taking advantage of the fact that short-term interest rates have been falling relative to longer-term rates by somewhat extending the maturity of the portfolio. As always, we are focused on providing additional value to investors by executing trades to improve the quality, structure and yield of holdings in the Fund. Yields on municipal bonds are currently attractive on a tax-adjusted basis compared to taxable alternatives, particularly for investors in the highest tax brackets. We appreciate your continued confidence in Columbia Oregon Municipal Bond Fund. Greta R. Clapp Portfolio Manager PORTFOLIO COMPOSITION % of Net Assets
6/30/01 12/31/00 Revenue 34.9 39.6 Insured Revenue 22.4 19.4 Insured General Obligation 15.3 14.4 General Obligation 14.4 13.3 State General Obligation 4.4 5.0 Other Bonds 3.4 3.5 Pre-Refunded Bonds 2.1 0.1 U.S. Territories 1.1 1.2 Cash 2.0 3.5
PORTFOLIO QUALITY % of Portfolio Holdings June 30, 2001 [PIE CHART] Aaa 38.8% Aa 34.6% A 11.9% Not Rated 11.3% Baa 3.4%
December 31, 2000 [PIE CHART] Aaa 37.6% Aa 32.4% A 14.8% Not Rated 11.6% Baa 3.6%
As rated by Moody's Investors Service, Inc. 29 31 INVESTMENT REVIEWS -------------------------------------------------------------------------------- COLUMBIA HIGH YIELD FUND AVERAGE ANNUAL TOTAL RETURNS As of June 30, 2001
CHYF SALOMON LIPPER BB HYBF 1 Year 6.41% 12.66% -7.83% 5 Years 7.53% 8.74% 3.03% Since Inception (10/1/93) 7.27% 8.50% 4.79%
GROWTH OF $10,000 SINCE INCEPTION [LINE GRAPH]
LIPPER HIGH YIELD BOND COLUMBIA HIGH YIELD FUND FUND INDEX SALOMON BB INDEX ------------------------ ---------------------- ---------------- 10/1/93 10000.00 10000.00 10000.00 12/31/93 10112.00 10498.00 10185.00 12/31/94 10019.00 10113.00 10048.00 12/31/95 11935.00 11870.00 12321.00 12/31/96 13060.00 13410.00 13429.00 12/31/97 14719.00 15177.00 15142.00 12/31/98 15640.00 15165.00 16361.00 12/31/99 16012.00 15890.00 16728.00 12/31/00 16750.00 14347.00 17223.00 6/30/01 17292.00 14366.00 18898.00
Past performance is not predictive of future results. The Salomon BB Index is an unmanaged index that measures the total return of bonds with a maturity of at least one year and includes bonds rated BB+, BB or BB- by Standard & Poor's or bonds rated Ba1, Ba2 or Ba3 by Moody's Investors Service. The Lipper High Yield Bond Fund Index represents equally weighted performance of the 30 largest mutual funds within its category. FUND PERFORMANCE Columbia High Yield Fund returned 3.25% for the six months ended June 30, 2001. The Fund's benchmarks, the Lipper High Yield Bond Fund Index and the Salomon BB Index returned 0.13% and 9.74% for the same period, respectively. Since its inception in 1993, the Fund has generated an average annual return of 7.27%, as compared to 4.79% for the Lipper High Yield Bond Fund Index and 8.50% for the Salmon BB Index for the same period. THE FED'S AGGRESSIVE EASING POLICY During the first half of the year, the Federal Reserve aggressively lowered short-term interest rates six times in an attempt to stimulate the economy. While we believe it is too soon for lower interest rates to make an impact, we anticipate an economic upturn later this year or in early 2002. In the high yield market, returns have been more modest than expected this year due to the continuing struggles of the telecommunications sector, which was down over 22% for the first six months. At the beginning of the year, the telecommunications sector comprised 15% of the Merrill Lynch High Yield Index, making it the largest single industry in the Index. Many of these companies have found themselves requiring more capital to meet funding needs at a time when the capital markets are not interested in providing any additional funds. This tight lending environment has resulted in a squeeze in liquidity for a number of different issuers, causing their bonds to drop significantly in value. We have maintained an underweighted position in telecommunications throughout the downturn, reducing our weighting by 4% in the second quarter alone. Also, the cable sector produced disappointing results, as returns were basically flat for the period. We reduced our weighting in cable during the first half of the year and closed the second quarter at a market-weighted position. Despite the challenges in the telecommunications and cable sectors, a number of other industries performed well. Some strong sectors in the high yield market included health care, which was up 10.2%, and energy, up 9.1% in the first half of 2001. We increased our exposure to both of these sectors in the period. In addition, gaming gained 8.1% during the first half of the year. 30 32 INVESTMENT REVIEWS -------------------------------------------------------------------------------- INDIVIDUAL STRONG CONTRIBUTORS Fund performance was lifted in the first half of the year by a number of holdings, including United Rentals, American Axle and Silgan. United Rentals is an equipment rental company whose bonds appreciated in the first half of the year as investors became more comfortable with the company's strategy to deal with the economic slowdown. Late in the fourth quarter of 2000, the company announced that it would cut expenses and reduce equipment purchases in 2001. These strategies should significantly increase the company's free cash flow. As that free cash flow is used to pay down debt, the company's credit fundamentals are expected to improve. American Axle, a supplier of driveline systems to auto manufacturers, saw its bonds perform well despite declines in auto production. The company's growing backlog of new business, good cost controls and increasing product content per vehicle were all factors that contributed to solid performance in the first six months of the year. Finally, bonds issued by Silgan, the largest metal food can manufacturer in the U.S., performed well due to the non- cyclical nature of the company's products. FALLING SHORT OF EXPECTATIONS As could be expected, many of our holdings that fell short of expectations are in the telecommunications industry. Level 3 and McLeod are both emerging telecommunications service providers that revised their revenue and cash flow estimates downward in the first half of the year. Bonds issued by Level 3 and McLeod traded down sharply during the period as investors became increasingly concerned about the impact that the slowing economy will have on profitability and liquidity. OUTLOOK With the exception of the telecommunications sector, the high yield market performed well for the first half. We expect the market environment to remain favorable as the Fed's easing policy and the recent tax cuts should help stabilize the economy. A more stable environment would provide a positive backdrop for high yield securities later in the year. Thank you for your confidence in Columbia High Yield Fund. Jeffrey L. Rippey and Kurt M. Havnaer Portfolio Managers TOP FIVE SECTORS % of Net Assets
6/30/01 12/31/00 Business & Consumer Services 23.0 23.3 Consumer Cyclical 20.6 19.0 Consumer Staples 14.0 7.5 Energy 7.6 7.6 Telecommunications 6.9 10.4
PORTFOLIO QUALITY % of Portfolio Holdings June 30, 2001 [PIE CHART] B 45.3% Ba 44.7% Baa 10.0%
December 31, 2000 [PIE CHART] Ba 51.1% B 34.5% Baa 14.3% C 0.1%
As rated by Moody's Investors Service, Inc. 31 33 INVESTMENT REVIEWS -------------------------------------------------------------------------------- COLUMBIA DAILY INCOME COMPANY AVERAGE ANNUAL TOTAL RETURNS As of June 30, 2001
CDIC CPI ----- ----- 1 Year 5.56% 3.20% 5 Years 5.16% 2.58% 10 Years 4.57% 2.73%
GROWTH OF $10,000 OVER 10 YEARS [LINE GRAPH]
COLUMBIA DAILY INCOME COMPANY CONSUMER PRICE INDEX (INFLATION) ----------------------------- -------------------------------- 6/30/91 10000 10000 6/30/92 10441 10310 6/30/93 10718 10619 6/30/94 11009 10885 6/30/95 11562 11211 6/30/96 12158 11525 6/30/97 12765 11790 6/30/98 13426 11991 6/30/99 14066 12231 6/30/00 14814 12683 6/30/01 15637 13089
Past performance is not predictive of future results. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency. Although the Fund seeks to preserve the value of your investment at $1 per share, it is possible to lose money by investing in the Fund. PORTFOLIO HIGHLIGHTS % of Net Assets
6/30/01 12/31/00 Current Yield 3.61% 6.00% Compound Yield 3.68% 6.18% Based on the 7 day period ending on each date shown Weighted Average Maturity 40 days 40 days
PERFORMANCE IN THE FIRST HALF For the first six months of 2001, Columbia Daily Income Company returned 2.37%. The Fund's return continues to compare favorably to the general level of inflation. The Consumer Price Index (CPI), for example, rose only 1.91% for the six months ended June 30, and it has remained in the 3% to 3.6% annual range for the past 18 months. Over the next 12 months, we expect the rate of inflation to decline. ECONOMY REMAINS STAGNANT The U.S. economy has remained sluggish, with growth reported at an annual pace of 1.2% during the first quarter of 2001. Preliminary reports for the second quarter showed an even slower rate of 0.7%. This significant slowing prompted the Federal Reserve Board to adopt an easing bias, and in a surprise move on January 3rd, interest rates dropped 0.50%. In an effort to boost the economy, the Fed lowered rates five more times in the first half of the year, for a total rate reduction of 2.75%. Currently, the federal funds rate stands at 3.75%. We believe the cumulative effect of these rate cuts should help economic growth in the coming quarters. In addition, we anticipate that the Bush administration's recently enacted tax law will provide some relief as tax rates are reduced and rebate checks reach the mailboxes of taxpayers, improving consumer confidence and benefiting the economy. SEEING LOWER YIELDS As the Fed has lowered short-term interest rates, the Fund's yield has declined. As a result, the Fund's current 7-day average yield has fallen sharply from 6.00% at December 31, 2000, to 3.61% at June 30, 2001. Nonetheless, the Fund continues to compare favorably to other short-term cash investments, many of which have experienced declining yields as the Fed has lowered rates. As always, the Fund invests in high quality, short-term debt instruments and maintains an average maturity of 30 to 50 days, providing a very liquid, low risk investment. Thank you for your confidence in Columbia Daily Income Company. Leonard A. Aplet Portfolio Manager 32 34 FINANCIAL HIGHLIGHTS -------------------------------------------------------------------------------- COLUMBIA COMMON STOCK FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
Six Months Ended June 30, 2001 (Unaudited) 2000 1999 1998 1997 1996 --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $24.34 $28.90 $24.40 $22.02 $19.26 $18.59 --------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)............. 0.02 (0.01) 0.03 0.09 0.29 0.25 Net realized and unrealized gains (losses) on investments................ (2.56) (1.54) 6.25 5.68 4.58 3.61 --------------------------------------------------------------------------------------------------------------------------------- Total from investment operations....... (2.54) (1.55) 6.28 5.77 4.87 3.86 --------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Dividends from net investment income..... -- -- (0.03) (0.13) (0.27) (0.23) Distributions from capital gains......... -- (3.01) (1.75) (3.26) (1.84) (2.96) --------------------------------------------------------------------------------------------------------------------------------- Total distributions.................... -- (3.01) (1.78) (3.39) (2.11) (3.19) --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $21.80 $24.34 $28.90 $24.40 $22.02 $19.26 --------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN.............................. -10.44%(1) -5.73% 25.76% 26.28% 25.37% 20.71% RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in thousands)............................... $763,984 $895,134 $959,910 $797,147 $783,906 $536,760 Ratio of expenses to average net assets... 0.79%(2) 0.75% 0.77% 0.80% 0.77% 0.76% Ratio of net investment income (loss) to average net assets....................... 0.20%(2) (0.05)% 0.09% 0.56% 1.37% 1.32% Portfolio turnover rate................... 59%(1) 104% 97% 141% 90% 111%
(1) Not annualized (2) Annualized COLUMBIA GROWTH FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
Six Months Ended June 30, 2001 (Unaudited) 2000 1999 1998 1997 1996 --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $40.07 $48.91 $42.51 $34.34 $30.74 $29.84 --------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)............. (0.03) (0.08) (0.03) 0.03 0.19 0.19 Net realized and unrealized gains (losses) on investments................ (5.51) (3.49) 11.09 10.39 7.90 6.04 --------------------------------------------------------------------------------------------------------------------------------- Total from investment operations....... (5.54) (3.57) 11.06 10.42 8.09 6.23 --------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Dividends from net investment income..... -- -- (0.00)* (0.08) (0.17) (0.17) Distributions from capital gains......... -- (5.27) (4.66) (2.17) (4.32) (5.16) --------------------------------------------------------------------------------------------------------------------------------- Total distributions.................... -- (5.27) (4.66) (2.25) (4.49) (5.33) --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $34.53 $40.07 $48.91 $42.51 $34.34 $30.74 --------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN.............................. -13.83%(1) -7.94% 26.02% 30.34% 26.32% 20.80% RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in thousands)............................... $1,563,751 $1,919,227 $2,160,739 $1,753,024 $1,324,918 $1,064,100 Ratio of expenses to average net assets... 0.71%(2) 0.65% 0.65% 0.68% 0.71% 0.71% Ratio of net investment income (loss) to average net assets....................... (0.15)%(2) (0.18)% (0.07)% 0.21% 0.55% 0.63% Portfolio turnover rate................... 65%(1) 114% 118% 105% 96% 75%
* Amount represents less than $0.01 per share. (1) Not annualized (2) Annualized See Accompanying Notes to Financial Statements 33 35 FINANCIAL HIGHLIGHTS -------------------------------------------------------------------------------- COLUMBIA INTERNATIONAL STOCK FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
Six Months Ended June 30, 2001 (Unaudited) 2000 1999 1998 1997 1996 --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $14.77 $22.81 $15.45 $13.70 $13.86 $13.07 --------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)............. 0.04 (0.04) (0.05) (0.00)* 0.03 0.03 Net realized and unrealized gains (losses) on investments and foreign currency transactions.................. (1.72) (5.17) 9.00 1.76 1.56 2.13 --------------------------------------------------------------------------------------------------------------------------------- Total from investment operations....... (1.68) (5.21) 8.95 1.76 1.59 2.16 --------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Dividends from net investment income..... -- -- -- -- -- (0.23) Distributions from capital gains......... -- (2.83) (1.59) (0.01) (1.75) (1.14) --------------------------------------------------------------------------------------------------------------------------------- Total distributions.................... -- (2.83) (1.59) (0.01) (1.75) (1.37) --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $13.09 $14.77 $22.81 $15.45 $13.70 $13.86 --------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN.............................. -11.37%(1) -22.64% 57.93% 12.83% 11.47% 16.59% RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in thousands)............................... $156,711 $175,316 $239,223 $134,193 $146,281 $125,510 Ratio of expenses to average net assets... 1.55%(2) 1.42% 1.48% 1.56% 1.62% 1.54% Ratio of net investment income (loss) to average net assets....................... 0.64%(2) (0.19)% (0.35)% (0.02)% 0.19% 0.22% Portfolio turnover rate................... 63%(1) 112% 94% 74% 122% 129%
* Amount represents less than $0.01 per share. (1) Not annualized (2) Annualized COLUMBIA SPECIAL FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
Six Months Ended June 30, 2001 (Unaudited) 2000 1999 1998 1997 1996 --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $25.99 $29.93 $23.62 $20.26 $19.85 $21.44 --------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)............. (0.04) (0.10) (0.16) (0.03) 0.01 (0.06) Net realized and unrealized gains (losses) on investments................ (4.03) 4.45 8.74 3.40 2.50 2.85 --------------------------------------------------------------------------------------------------------------------------------- Total from investment operations....... (4.07) 4.35 8.58 3.37 2.51 2.79 --------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Dividends from net investment income..... -- -- -- (0.01) -- -- Distributions from capital gains......... -- (8.29) (2.27) (0.00)* (2.10) (4.38) --------------------------------------------------------------------------------------------------------------------------------- Total distributions.................... -- (8.29) (2.27) (0.01) (2.10) (4.38) --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $21.92 $25.99 $29.93 $23.62 $20.26 $19.85 --------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN.............................. -15.66%(1) 13.84% 36.33% 16.64% 12.64% 13.07% RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in thousands)............................... $916,424 $1,095,525 $918,322 $969,359 $1,249,718 $1,585,284 Ratio of expenses to average net assets... 1.05%(2) 0.99% 1.09% 1.03% 0.98% 0.94% Ratio of net investment income (loss) to average net assets....................... (0.39)%(2) (0.38)% (0.64)% (0.09)% 0.04% (0.29)% Portfolio turnover rate................... 97%(1) 169% 135% 135% 166% 150%
* Amount represents less than $0.01 per share. (1) Not annualized (2) Annualized See Accompanying Notes to Financial Statements 34 36 FINANCIAL HIGHLIGHTS -------------------------------------------------------------------------------- COLUMBIA SMALL CAP FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
Six Months Ended June 30, 2001 (Unaudited) 2000 1999 1998 1997 1996(1) --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $25.87 $27.26 $17.43 $16.65 $12.99 $12.00 --------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment loss...................... (0.08) (0.10) (0.14) (0.09) (0.08) (0.00)* Net realized and unrealized gains (losses) on investments................ (1.41) 1.75 10.45 0.87 4.51 0.99 --------------------------------------------------------------------------------------------------------------------------------- Total from investment operations....... (1.49) 1.65 10.31 0.78 4.43 0.99 --------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Distributions from capital gains......... -- (3.04) (0.48) (0.00)* (0.77) -- --------------------------------------------------------------------------------------------------------------------------------- Total distributions.................... -- (3.04) (0.48) (0.00) (0.77) -- --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $24.38 $25.87 $27.26 $17.43 $16.65 $12.99 --------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN.............................. -5.76%(2) 5.85% 59.15% 4.69% 34.10% 7.62%(2) RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in thousands)............................... $570,625 $518,970 $290,374 $160,472 $96,431 $21,061 Ratio of expenses to average net assets... 1.22%(3) 1.22% 1.30% 1.34% 1.46% 1.61%(3) Ratio of net investment loss to average net assets............................... (0.73)%(3) (0.44)% (0.84)% (0.68)% (0.81)% 0.00%(3) Portfolio turnover rate................... 59%(2) 145% 188% 158% 172% 33%(3)
* Amount represents less than $0.01 per share. (1) From inception of operations on September 11, 1996. (2) Not annualized (3) Annualized COLUMBIA REAL ESTATE EQUITY FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
Six Months Ended June 30, 2001 (Unaudited) 2000 1999 1998 1997 1996 --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $17.89 $14.57 $15.76 $18.80 $16.16 $12.71 --------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income.................... 0.32 0.81 0.82 0.75 0.79 0.77 Net realized and unrealized gains (losses) on investments................ 0.72 3.32 (1.19) (3.04) 3.15 3.94 --------------------------------------------------------------------------------------------------------------------------------- Total from investment operations....... 1.04 4.13 (0.37) (2.29) 3.94 4.71 --------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Dividends from net investment income..... (0.32) (0.75) (0.71) (0.66) (0.62) (0.52) Distributions from capital gains......... -- -- -- -- (0.51) (0.53) Return of capital........................ -- (0.06) (0.11) (0.09) (0.17) (0.21) --------------------------------------------------------------------------------------------------------------------------------- Total distributions.................... (0.32) (0.81) (0.82) (0.75) (1.30) (1.26) --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $18.61 $17.89 $14.57 $15.76 $18.80 $16.16 --------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN.............................. 5.91%(1) 28.84% -2.45% -12.33% 24.74% 38.30% RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in thousands)............................... $524,009 $436,764 $241,716 $164,172 $151,554 $68,073 Ratio of expenses to average net assets... 0.94%(2) 0.96% 0.99% 1.01% 1.02% 1.06% Ratio of net investment income to average net assets............................... 3.90%(2) 5.16% 5.66% 4.60% 4.87% 6.23% Portfolio turnover rate................... 25%(1) 25% 29% 6% 34% 46%
(1) Not annualized (2) Annualized See Accompanying Notes to Financial Statements 35 37 FINANCIAL HIGHLIGHTS -------------------------------------------------------------------------------- COLUMBIA TECHNOLOGY FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
Six Months Ended June 30, 2001 (Unaudited) 2000(1) ------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $8.63 $10.00 ------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)............................... (0.03) 0.01 Net realized and unrealized losses on investments.......... (1.31) (1.37) ------------------------------------------------------------------------------------------- Total from investment operations......................... (1.34) (1.36) ------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Dividends from net investment income....................... -- (0.01) ------------------------------------------------------------------------------------------- Total distributions...................................... -- (0.01) ------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $7.29 $8.63 ------------------------------------------------------------------------------------------- TOTAL RETURN................................................ -15.53%(2) -13.78%(2) RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in thousands).................... $15,002 $4,327 Ratio of expenses to average net assets..................... 1.69%(3) 1.48%(3) Ratio of expenses to average net assets before voluntary reimbursement.............................................. 2.73%(3) 8.97%(3) Ratio of net investment income (loss) to average net assets..................................................... (1.10)%(3) 0.99%(3) Portfolio turnover rate..................................... 194%(2) 63%(2)
(1) From inception of operations on October 27, 2000. (2) Not annualized (3) Annualized COLUMBIA STRATEGIC VALUE FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
Six Months Ended June 30, 2001 (Unaudited) 2000(1) ------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $11.23 $10.00 ------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income...................................... 0.03 0.02 Net realized and unrealized gains on investments........... 2.71 1.23 ------------------------------------------------------------------------------------------- Total from investment operations......................... 2.74 1.25 ------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Dividends from net investment income....................... -- (0.02) ------------------------------------------------------------------------------------------- Total distributions...................................... -- (0.02) ------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $13.97 $11.23 ------------------------------------------------------------------------------------------- TOTAL RETURN................................................ 24.40%(2) 12.25%(2) RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in thousands).................... $78,698 $9,526 Ratio of expenses to average net assets..................... 1.19%(3) 1.34%(3) Ratio of expenses to average net assets before voluntary reimbursement.............................................. 1.19%(3) 5.31%(3) Ratio of net investment income to average net assets........ 0.92%(3) 1.92%(3) Portfolio turnover rate..................................... 163%(2) 64%(2)
(1) From inception of operations on October 27, 2000. (2) Not annualized (3) Annualized See Accompanying Notes to Financial Statements 36 38 FINANCIAL HIGHLIGHTS -------------------------------------------------------------------------------- COLUMBIA BALANCED FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
Six Months Ended June 30, 2001 (Unaudited) 2000 1999 1998 1997 1996 --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $22.96 $24.72 $23.17 $21.42 $20.32 $20.08 --------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income.................... 0.30 0.67 0.69 0.72 0.84 0.76 Net realized and unrealized gains (losses) on investments................ (1.40) (0.41) 2.21 3.52 2.92 1.58 --------------------------------------------------------------------------------------------------------------------------------- Total from investment operations....... (1.10) 0.26 2.90 4.24 3.76 2.34 --------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Dividends from net investment income..... (0.29) (0.68) (0.69) (0.73) (0.83) (0.76) Distributions from capital gains......... -- (1.34) (0.66) (1.76) (1.83) (1.34) --------------------------------------------------------------------------------------------------------------------------------- Total distributions.................... (0.29) (2.02) (1.35) (2.49) (2.66) (2.10) --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $21.57 $22.96 $24.72 $23.17 $21.42 $20.32 --------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN.............................. -4.77%(1) 0.82% 12.70% 20.07% 18.74% 11.78% RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in thousands)............................... $1,065,186 $1,126,854 $1,040,940 $975,381 $792,378 $672,593 Ratio of expenses to average net assets... 0.66%(2) 0.65% 0.66% 0.67% 0.68% 0.66% Ratio of net investment income to average net assets............................... 2.69%(2) 2.73% 2.85% 3.22% 3.83% 3.82% Portfolio turnover rate................... 58%(1) 105% 133% 128% 149% 133%
(1) Not annualized (2) Annualized COLUMBIA SHORT TERM BOND FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
Six Months Ended June 30, 2001 (Unaudited) 2000 1999 1998 1997 1996 --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $8.36 $8.20 $8.39 $8.29 $8.24 $8.34 --------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income.................... 0.24 0.42 0.33 0.38 0.41 0.41 Net realized and unrealized gains (losses) on investments................ 0.08 0.16 (0.18) 0.14 0.05 (0.10) --------------------------------------------------------------------------------------------------------------------------------- Total from investment operations....... 0.32 0.58 0.15 0.52 0.46 0.31 --------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Dividends from net investment income..... (0.24) (0.42) (0.33) (0.38) (0.41) (0.41) Distributions from capital gains......... -- -- (0.01) (0.04) -- -- --------------------------------------------------------------------------------------------------------------------------------- Total distributions.................... (0.24) (0.42) (0.34) (0.42) (0.41) (0.41) --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $8.44 $8.36 $8.20 $8.39 $8.29 $8.24 --------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN.............................. 3.87%(1) 7.26% 1.80% 6.43% 5.76% 3.85% RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in thousands)............................... $39,988 $35,856 $38,072 $40,578 $37,837 $40,776 Ratio of expenses to average net assets... 0.76%(2) 0.88% 0.91% 0.89% 0.87% 0.80% Ratio of expenses to average net assets before contractual reimbursement......... 0.94%(2) 0.90% 0.91% 0.89% 0.87% 0.80% Ratio of net investment income to average net assets............................... 5.74%(2) 5.09% 4.09% 4.55% 4.99% 4.99% Portfolio turnover rate................... 66%(1) 147% 211% 182% 184% 179%
(1) Not annualized (2) Annualized See Accompanying Notes to Financial Statements 37 39 FINANCIAL HIGHLIGHTS -------------------------------------------------------------------------------- COLUMBIA FIXED INCOME SECURITIES FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
Six Months Ended June 30, 2001 (Unaudited) 2000 1999 1998 1997 1996 --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $12.97 $12.44 $13.42 $13.41 $13.08 $13.51 --------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income.................... 0.41 0.82 0.78 0.83 0.85 0.85 Net realized and unrealized gains (losses) on investments................ 0.05 0.53 (0.98) 0.14 0.36 (0.43) --------------------------------------------------------------------------------------------------------------------------------- Total from investment operations....... 0.46 1.35 (0.20) 0.97 1.21 0.42 --------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Dividends from net investment income..... (0.41) (0.82) (0.78) (0.83) (0.85) (0.85) Distributions from capital gains......... -- -- (0.00)* (0.13) (0.03) -- --------------------------------------------------------------------------------------------------------------------------------- Total distributions.................... (0.41) (0.82) (0.78) (0.96) (0.88) (0.85) --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $13.02 $12.97 $12.44 $13.42 $13.41 $13.08 --------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN.............................. 3.54%(1) 11.27% -1.50% 7.44% 9.56% 3.37% RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in thousands)............................... $421,755 $378,799 $397,147 $422,330 $381,333 $356,421 Ratio of expenses to average net assets... 0.66%(2) 0.66% 0.64% 0.65% 0.66% 0.64% Ratio of net investment income to average net assets............................... 6.25%(2) 6.53% 6.03% 6.15% 6.43% 6.53% Portfolio turnover rate................... 53%(1) 105% 155% 107% 196% 178%
* Amount represents less than $0.01 per share. (1) Not annualized (2) Annualized COLUMBIA NATIONAL MUNICIPAL BOND FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
Six Months Ended June 30, 2001 (Unaudited) 2000 1999(1) --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $9.82 $9.28 $10.00 --------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income................... 0.22 0.44 0.34 Net realized and unrealized gains (losses) on investments............... 0.02 0.54 (0.72) --------------------------------------------------------------------------------------------------------------------------------- Total from investment operations...... 0.24 0.98 (0.38) --------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Dividends from net investment income.... (0.22) (0.44) (0.34) --------------------------------------------------------------------------------------------------------------------------------- Total distributions................... (0.22) (0.44) (0.34) --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $9.84 $9.82 $9.28 --------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN............................. 2.47%(2) 10.87% -3.93%(2) RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in thousands).............................. $10,645 $10,898 $10,135 Ratio of expenses to average net assets.................................. 0.65%(3) 0.65% 0.65%(3) Ratio of expenses to average net assets before contractual reimbursement........ 1.38%(3) 1.29% 1.72%(3) Ratio of net investment income to average net assets.............................. 4.58%(3) 4.68% 4.21%(3) Portfolio turnover rate.................. 12%(2) 21% 12%(3)
(1) From inception of operations on February 10, 1999. (2) Not annualized (3) Annualized See Accompanying Notes to Financial Statements 38 40 FINANCIAL HIGHLIGHTS -------------------------------------------------------------------------------- COLUMBIA OREGON MUNICIPAL BOND FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
Six Months Ended June 30, 2001 (Unaudited) 2000 1999 1998 1997 1996 --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $12.13 $11.56 $12.46 $12.47 $12.15 $12.37 --------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income.................... 0.29 0.58 0.56 0.58 0.60 0.61 Net realized and unrealized gains (losses) on investments................ 0.06 0.58 (0.88) 0.10 0.39 (0.16) --------------------------------------------------------------------------------------------------------------------------------- Total from investment operations....... 0.35 1.16 (0.32) 0.68 0.99 0.45 --------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Dividends from net investment income..... (0.29) (0.58) (0.56) (0.58) (0.60) (0.61) Distributions from capital gains......... -- (0.01) (0.02) (0.11) (0.07) (0.06) --------------------------------------------------------------------------------------------------------------------------------- Total distributions.................... (0.29) (0.59) (0.58) (0.69) (0.67) (0.67) --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $12.19 $12.13 $11.56 $12.46 $12.47 $12.15 --------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN.............................. 2.87%(1) 10.28% -2.65% 5.58% 8.36% 3.77% RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in thousands)............................... $470,685 $436,544 $409,919 $462,809 $409,148 $375,667 Ratio of expenses to average net assets... 0.58%(2) 0.58% 0.57% 0.58% 0.57% 0.56% Ratio of net investment income to average net assets............................... 4.72%(2) 4.92% 4.64% 4.60% 4.87% 5.00% Portfolio turnover rate................... 6%(1) 22% 28% 17% 17% 19%
(1) Not annualized (2) Annualized COLUMBIA HIGH YIELD FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
Six Months Ended June 30, 2001 (Unaudited) 2000 1999 1998 1997 1996 --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $8.98 $9.32 $9.84 $10.04 $9.94 $9.88 --------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income.................... 0.35 0.75 0.74 0.76 0.81 0.81 Net realized and unrealized gains (losses) on investments................ (0.06) (0.34) (0.51) (0.15) 0.40 0.07 --------------------------------------------------------------------------------------------------------------------------------- Total from investment operations....... 0.29 0.41 0.23 0.61 1.21 0.88 --------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Dividends from net investment income..... (0.35) (0.75) (0.74) (0.76) (0.81) (0.81) Distributions from capital gains......... -- -- (0.01) (0.05) (0.30) (0.01) --------------------------------------------------------------------------------------------------------------------------------- Total distributions.................... (0.35) (0.75) (0.75) (0.81) (1.11) (0.82) --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $8.92 $8.98 $9.32 $9.84 $10.04 $9.94 --------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN.............................. 3.25%(1) 4.61% 2.38% 6.26% 12.70% 9.43% RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in thousands)............................... $178,118 $97,575 $71,678 $57,524 $39,278 $28,818 Ratio of expenses to average net assets... 0.91%(2) 0.93% 0.91% 0.95% 1.00% 0.93% Ratio of expenses to average net assets before voluntary reimbursement........... 0.91%(2) 0.93% 0.91% 0.95% 1.02% 1.00% Ratio of net investment income to average net assets............................... 7.83%(2) 8.22% 7.71% 7.52% 8.05% 8.29% Portfolio turnover rate................... 34%(1) 50% 49% 79% 124% 62%
(1) Not annualized (2) Annualized See Accompanying Notes to Financial Statements 39 41 FINANCIAL HIGHLIGHTS -------------------------------------------------------------------------------- COLUMBIA DAILY INCOME COMPANY FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
Six Months Ended June 30, 2001 (Unaudited) 2000 1999 1998 1997 1996 --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 --------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income.................... 0.023 0.058 0.046 0.050 0.050 0.048 --------------------------------------------------------------------------------------------------------------------------------- Total from investment operations....... 0.023 0.058 0.046 0.050 0.050 0.048 --------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Dividends from net investment income..... (0.023) (0.058) (0.046) (0.050) (0.050) (0.048) --------------------------------------------------------------------------------------------------------------------------------- Total distributions.................... (0.023) (0.058) (0.046) (0.050) (0.050) (0.048) --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 --------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN.............................. 2.37%(1) 6.00% 4.71% 5.09% 5.11% 4.96% RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in thousands)............................... $1,224,652 $1,198,151 $1,165,289 $1,109,141 $1,169,096 $889,800 Ratio of expenses to average net assets... 0.59%(2) 0.60% 0.64% 0.62% 0.63% 0.62% Ratio of net investment income to average net assets............................... 4.71%(2) 5.82% 4.61% 4.97% 4.99% 4.84%
(1) Not annualized (2) Annualized See Accompanying Notes to Financial Statements 40 42 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
COLUMBIA COMMON STOCK FUND JUNE 30, 2001 (UNAUDITED) SHARES VALUE ----------------------------------------------------------------------- COMMON STOCKS (95.6%) APPLICATIONS SOFTWARE (3.5%) *Microsoft Corp. .................... 371,300 $ 26,956,380 -------------- AUTO - CARS & LIGHT TRUCKS (1.3%) DaimlerChrysler AG................... 213,850 9,858,485 -------------- BROADCAST SERVICES & PROGRAMMING (1.8%) *AT&T Corp.-Liberty Media Group (Class A).......................... 477,514 8,351,720 *Clear Channel Communications, Inc. .............................. 90,050 5,646,135 -------------- 13,997,855 -------------- BUILDING & CONSTRUCTION PRODUCTS (1.1%) Masco Corp. ......................... 240,900 6,012,864 Vulcan Materials Co. ................ 41,800 2,246,750 -------------- 8,259,614 -------------- CABLE TELEVISION (1.6%) *Adelphia Communications Corp. (Class A)................................. 117,400 4,813,400 *Charter Communications, Inc. (Class A)................................. 322,200 7,523,370 -------------- 12,336,770 -------------- COMPUTERS (3.2%) Compaq Computer Corp. ............... 454,250 7,036,332 International Business Machines Corp. ............................. 123,200 13,921,600 *Sun Microsystems, Inc. ............. 225,350 3,542,502 -------------- 24,500,434 -------------- COMPUTERS - MEMORY DEVICES (1.1%) *EMC Corp. .......................... 183,550 5,332,127 *VERITAS Software Corp. ............. 51,350 3,416,315 -------------- 8,748,442 -------------- COSMETICS & TOILETRIES (1.9%) Kimberly-Clark Corp. ................ 262,550 14,676,545 -------------- DIVERSIFIED FINANCIAL SERVICES (4.2%) Citigroup, Inc. ..................... 614,223 32,455,543 -------------- DIVERSIFIED MANUFACTURING OPERATIONS (8.8%) Danaher Corp. ....................... 38,100 2,133,600 General Electric Co. ................ 582,450 28,394,437 Honeywell International, Inc. ....... 59,500 2,081,905 Minnesota Mining & Manufacturing Co. ............................... 116,950 13,343,995 Textron, Inc. ....................... 83,500 4,595,840 Tyco International, Ltd. ............ 307,366 16,751,447 -------------- 67,301,224 --------------
SHARES VALUE ----------------------------------------------------------------------- ELECTRIC - INTEGRATED (0.5%) Exelon Corp. ........................ 65,250 $ 4,183,830 -------------- ELECTRONIC COMPONENTS - MISC. (1.4%) *Celestica, Inc. .................... 205,850 10,601,275 -------------- ELECTRONIC COMPONENTS - SEMICONDUCTORS (4.5%) *Agere Systems, Inc. (Class A)....... 413,000 3,097,500 Intel Corp........................... 493,750 14,442,188 *Micron Technology, Inc. ............ 190,100 7,813,110 *National Semiconductor Corp. ....... 157,150 4,576,208 Texas Instruments, Inc. ............. 150,450 4,739,175 -------------- 34,668,181 -------------- ENTERPRISE SOFTWARE - SERVICES (0.5%) *PeopleSoft, Inc. ................... 72,850 3,586,406 -------------- FIDUCIARY BANKS (0.9%) Bank of New York Company, Inc., The................................ 138,450 6,645,600 -------------- FINANCE - CREDIT CARDS (1.6%) American Express Co. ................ 321,400 12,470,320 -------------- FINANCE - INVESTMENT BANKERS/BROKERS (1.1%) Merrill Lynch & Co., Inc. ........... 89,650 5,311,763 Morgan Stanley Dean Witter & Co. .... 42,950 2,758,679 -------------- 8,070,442 -------------- FINANCE - MORTGAGE LOAN BANKER (1.7%) Freddie Mac.......................... 183,450 12,841,500 -------------- FOOD-MISC. DIVERSIFIED (0.8%) *Kraft Foods, Inc. (Class A)......... 204,100 6,327,100 -------------- HOTELS & MOTELS (0.4%) Starwood Hotels & Resorts Worldwide, Inc. .............................. 87,219 3,251,524 -------------- INDEPENDENT POWER PRODUCER (0.5%) *Reliant Resources, Inc. ............ 168,200 4,154,540 -------------- INSURANCE BROKERS (0.4%) Marsh & McLennan Companies, Inc. .... 28,150 2,843,150 -------------- LIFE & HEALTH INSURANCE (0.2%) John Hancock Financial Services, Inc. .............................. 42,800 1,723,128 -------------- MACHINERY - CONSTRUCTION & MINING (1.4%) Caterpillar, Inc. ................... 214,850 10,753,242 -------------- MACHINERY - GENERAL INDUSTRIAL (0.6%) Ingersoll-Rand Co. .................. 106,100 4,371,320 -------------- MEDICAL INSTRUMENTS (0.8%) Beckman Coulter, Inc. ............... 146,700 5,985,360 -------------- MEDICAL PRODUCTS (2.4%) Baxter International, Inc. .......... 367,700 18,017,300 --------------
See Accompanying Notes to Financial Statements 41 43 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
COLUMBIA COMMON STOCK FUND (CONT.) JUNE 30, 2001 (UNAUDITED) SHARES VALUE ----------------------------------------------------------------------- MEDICAL - DRUGS (10.2%) Abbott Laboratories.................. 218,300 $ 10,480,583 Pfizer, Inc. ........................ 941,537 37,708,557 Pharmacia Corp. ..................... 375,450 17,251,928 Schering-Plough Corp. ............... 347,600 12,597,024 -------------- 78,038,092 -------------- METAL - ALUMINUM (1.0%) Alcan, Inc. ......................... 179,900 7,559,398 -------------- MONEY CENTER BANKS (2.5%) Bank of America Corp. ............... 197,455 11,853,224 J.P. Morgan Chase & Co. ............. 155,460 6,933,516 -------------- 18,786,740 -------------- MULTI-LINE INSURANCE (2.2%) American International Group, Inc. .............................. 192,037 16,515,182 -------------- MULTIMEDIA (3.8%) *AOL Time Warner, Inc. .............. 417,064 22,104,392 *Viacom, Inc. (Class B).............. 131,750 6,818,062 -------------- 28,922,454 -------------- NETWORKING PRODUCTS (1.4%) *Cisco Systems, Inc. ................ 596,950 10,864,490 -------------- NON-HAZARDOUS WASTE DISPOSAL (2.2%) Waste Management, Inc. .............. 553,175 17,048,853 -------------- OIL COMPANIES - INTEGRATED (1.9%) Chevron Corp. ....................... 75,050 6,792,025 Exxon Mobil Corp. ................... 88,882 7,763,843 -------------- 14,555,868 -------------- OIL & GAS DRILLING (0.6%) *Global Marine, Inc. ................ 71,050 1,323,662 *Noble Drilling Corp. ............... 41,400 1,355,850 Transocean Sedco Forex, Inc. ........ 40,000 1,650,000 -------------- 4,329,512 -------------- OIL - FIELD SERVICES (0.2%) *Weatherford International, Inc. .... 34,950 1,677,600 -------------- PIPELINES (1.7%) Dynegy, Inc. (Class A)............... 106,900 4,970,850 El Paso Corp. ....................... 156,254 8,209,585 -------------- 13,180,435 -------------- REINSURANCE (0.7%) *Berkshire Hathaway, Inc. (Class A)................................. 75 5,205,000 -------------- RETAIL - BUILDING PRODUCTS (0.9%) Home Depot, Inc. .................... 149,150 6,942,933 --------------
SHARES VALUE ----------------------------------------------------------------------- RETAIL - DISCOUNT (1.7%) Wal-Mart Stores, Inc. ............... 260,100 $ 12,692,880 -------------- RETAIL - REGIONAL DEPARTMENT STORE (1.1%) *Federated Department Stores, Inc. .............................. 171,090 7,271,325 *Kohl's Corp. ....................... 18,350 1,151,095 -------------- 8,422,420 -------------- RETAIL - TOY STORE (0.9%) *Toys "R" Us, Inc. .................. 286,000 7,078,500 -------------- SAVINGS & LOAN-THRIFTS (1.1%) Washington Mutual, Inc. ............. 214,100 8,039,455 -------------- SEMICONDUCTOR EQUIPMENT (1.9%) *Applied Materials, Inc. ............ 103,500 5,081,850 *KLA-Tencor Corp. ................... 80,450 4,703,912 *Novellus Systems, Inc. ............. 78,000 4,429,620 -------------- 14,215,382 -------------- SUPER REGIONAL BANKS (1.1%) Bank One Corp. ...................... 243,400 8,713,720 -------------- TELECOMMUNICATIONS SERVICES (1.0%) *Amdocs Ltd. ........................ 101,050 5,441,543 *Global Crossing Ltd. ............... 224,750 1,941,840 -------------- 7,383,383 -------------- TELECOMMUNICATION EQUIPMENT (0.4%) *Comverse Technology, Inc. .......... 57,150 3,292,983 -------------- TELEPHONE - INTEGRATED (5.5%) AT&T Corp. .......................... 490,700 10,795,400 BellSouth Corp. ..................... 138,400 5,573,368 Qwest Communications International, Inc. .............................. 183,141 5,836,704 SBC Communications, Inc. ............ 176,250 7,060,575 Sprint Corp. (Fon Group)............. 221,200 4,724,832 Verizon Communications, Inc. ........ 145,600 7,789,600 -------------- 41,780,479 -------------- TOBACCO (1.6%) Philip Morris Companies, Inc......... 233,150 11,832,362 -------------- TRANSPORT - RAIL (1.8%) Burlington Northern Santa Fe Corp. ............................. 186,000 5,611,620 Union Pacific Corp. ................. 147,350 8,090,988 -------------- 13,702,608 -------------- Total Common Stocks (Cost $624,189,149).......................... 730,366,239 --------------
See Accompanying Notes to Financial Statements 42 44 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- REPURCHASE AGREEMENT (3.4%) J.P. Morgan Securities, Inc. 3.94% Dated 06/29/2001, due 07/02/2001 in the amount of $25,885,003. Collateralized by U.S. Treasury Notes 7.25% due 08/15/2004 U.S. Treasury Bonds 5.375% to 15.75% due 08/15/2001 to 02/15/2031 U.S. Treasury Strips due 08/15/2001 to 08/15/2028 (Cost $25,882,206)................. $25,882,206 $ 25,882,206 -------------- TOTAL INVESTMENTS (99.0%) (Cost $650,071,355).......................... 756,248,445 OTHER ASSETS LESS LIABILITIES (1.0%).... 7,735,577 -------------- NET ASSETS (100.0%)..................... $ 763,984,022 ============== * Non-income producing
COLUMBIA GROWTH FUND JUNE 30, 2001 (UNAUDITED) SHARES VALUE ----------------------------------------------------------------------- COMMON STOCKS (98.1%) APPLICATIONS SOFTWARE (6.2%) *Microsoft Corp. .................... 1,108,300 $ 80,462,580 *Siebel Systems, Inc. ............... 362,400 16,996,560 -------------- 97,459,140 -------------- BUSINESS-TO-BUSINESS/E-COMMERCE (0.4%) *i2 Technologies, Inc. .............. 296,000 5,860,800 -------------- BROADCAST SERVICES & PROGRAMMING (1.3%) *Clear Channel Communications, Inc. .............................. 320,231 20,078,484 -------------- BUILDING & CONSTRUCTION PRODUCTS (0.4%) Vulcan Materials Co. ................ 119,900 6,444,625 -------------- CABLE TELEVISION (1.8%) *Charter Communications, Inc. (Class A)................................. 932,000 21,762,200 *USA Networks, Inc. ................. 224,200 6,320,198 -------------- 28,082,398 -------------- COMMERCIAL SERVICES - FINANCIAL (0.2%) *Concord EFS, Inc. .................. 72,300 3,760,323 --------------
SHARES VALUE ----------------------------------------------------------------------- COMPUTERS (4.6%) *Apple Computer, Inc. ............... 407,000 $ 9,462,750 *Dell Computer Corp. ................ 694,900 18,032,655 International Business Machines Corp. ............................. 280,300 31,673,900 *Sun Microsystems, Inc. ............. 803,300 12,627,876 -------------- 71,797,181 -------------- COMPUTERS - MEMORY DEVICES (2.0%) *EMC Corp. .......................... 525,400 15,262,870 *VERITAS Software Corp. ............. 251,000 16,699,030 -------------- 31,961,900 -------------- DIVERSIFIED FINANCIAL SERVICES (3.6%) Citigroup, Inc. ..................... 1,074,000 56,750,160 -------------- DIVERSIFIED MANUFACTURING OPERATIONS (10.2%) General Electric Co. ................ 1,528,100 74,494,875 Minnesota Mining & Manufacturing Co. ............................... 204,800 23,367,680 Tyco International, Ltd. ............ 1,120,700 61,078,150 -------------- 158,940,705 -------------- ELECTRONIC COMPONENTS - MISC. (4.2%) *Celestica, Inc. .................... 604,350 31,124,025 *Flextronics International Ltd. ..... 1,357,000 35,431,270 -------------- 66,555,295 -------------- ELECTRONIC COMPONENTS - SEMICONDUCTORS (5.9%) *Agere Systems, Inc. (Class A)....... 852,600 6,394,500 *Altera Corp. ....................... 164,000 4,756,000 Intel Corp. ......................... 1,480,350 43,300,238 *LSI Logic Corp. .................... 245,700 4,619,160 *Micron Technology, Inc. ............ 306,600 12,601,260 *National Semiconductor Corp. ....... 178,300 5,192,096 Texas Instruments, Inc. ............. 356,400 11,226,600 *Xilinx, Inc. ....................... 90,600 3,736,344 -------------- 91,826,198 -------------- ENTERPRISE SOFTWARE - SERVICES (2.5%) *BEA Systems, Inc. .................. 158,700 4,873,677 *Oracle Corp. ....................... 642,300 12,203,700 *PeopleSoft, Inc. ................... 432,950 21,314,129 -------------- 38,391,506 -------------- ENTERTAINMENT SOFTWARE (0.8%) *Electronic Arts, Inc. .............. 225,000 13,027,500 -------------- FIDUCIARY BANKS (0.8%) Bank of New York Company, Inc. ...... 272,400 13,075,200 -------------- FINANCE - CREDIT CARDS (0.4%) American Express Co. ................ 173,800 6,743,440 --------------
See Accompanying Notes to Financial Statements 43 45 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
COLUMBIA GROWTH FUND (CONT.) JUNE 30, 2001 (UNAUDITED) SHARES VALUE ----------------------------------------------------------------------- FINANCE - INVESTMENT BANKER/BROKER (1.6%) Goldman Sachs Group, Inc. ........... 49,300 $ 4,229,940 Merrill Lynch & Co., Inc. ........... 231,100 13,692,675 Morgan Stanley Dean Witter & Co. .... 100,700 6,467,961 -------------- 24,390,576 -------------- FINANCE - MORTGAGE LOAN BANKER (2.5%) Fannie Mae........................... 300,600 25,596,090 Freddie Mac.......................... 203,700 14,259,000 -------------- 39,855,090 -------------- FOOD - MISC. DIVERSIFIED (0.9%) *Kraft Foods, Inc. (Class A)......... 435,800 13,509,800 -------------- HEALTH CARE COST CONTAINMENT/MANAGEMENT (0.3%) McKesson HBOC, Inc. ................. 127,000 4,714,240 -------------- INDEPENDENT POWER PRODUCER (0.9%) *Calpine Corp. ...................... 175,000 6,615,000 *Reliant Resources, Inc. ............ 311,800 7,701,460 -------------- 14,316,460 -------------- INSTRUMENTS - SCIENTIFIC (0.3%) *Waters Corp. ....................... 193,300 5,337,013 -------------- INTERNET SECURITY (0.2%) *Check Point Software Technologies Ltd. .............................. 55,820 2,822,817 -------------- MEDICAL PRODUCTS (3.8%) Baxter International, Inc. .......... 687,900 33,707,100 Johnson & Johnson.................... 520,000 26,000,000 -------------- 59,707,100 -------------- MEDICAL - BIOMEDICAL & GENETIC (0.7%) *Genentech, Inc. .................... 104,000 5,730,400 *Human Genome Sciences, Inc. ........ 89,000 5,362,250 -------------- 11,092,650 -------------- MEDICAL - BIOTECH (0.4%) *Millennium Pharmaceuticals, Inc. ... 154,000 5,479,320 -------------- MEDICAL - DRUGS (10.1%) Abbott Laboratories.................. 347,800 16,697,878 Merck & Co., Inc. ................... 110,800 7,081,228 Pfizer, Inc. ........................ 1,934,375 77,471,719 Pharmacia Corp. ..................... 794,850 36,523,357 Schering-Plough Corp. ............... 539,100 19,536,984 -------------- 157,311,166 -------------- MEDICAL - WHOLESALE DRUG DISTRIBUTOR (0.4%) Cardinal Health, Inc. ............... 92,000 6,348,000 --------------
SHARES VALUE ----------------------------------------------------------------------- MULTI-LINE INSURANCE (2.5%) American International Group, Inc. .............................. 449,394 $ 38,647,884 -------------- MULTIMEDIA (5.3%) *AOL Time Warner, Inc. .............. 1,208,795 64,066,135 *Viacom, Inc. (Class B).............. 362,550 18,761,962 -------------- 82,828,097 -------------- NETWORKING PRODUCTS (2.2%) *Cisco Systems, Inc. ................ 1,420,600 25,854,920 *ONI Systems Corp. .................. 321,000 8,955,900 -------------- 34,810,820 -------------- OIL & GAS DRILLING (1.8%) *Nabors Industries, Inc. ............ 140,150 5,213,580 *Noble Drilling Corp. ............... 354,550 11,611,513 Transocean Sedco Forex, Inc. ........ 265,000 10,931,250 -------------- 27,756,343 -------------- OIL - FIELD SERVICES (0.9%) *BJ Services Co. .................... 359,000 10,188,420 *Global Crossing Ltd. ............... 473,850 4,094,064 -------------- 14,282,484 -------------- PIPELINES (1.1%) Dynegy, Inc. (Class A)............... 353,200 16,423,800 -------------- RETAIL - BUILDING PRODUCTS (1.9%) Home Depot, Inc. .................... 369,350 17,193,242 Lowe's Companies, Inc. .............. 177,900 12,906,645 -------------- 30,099,887 -------------- RETAIL - DISCOUNT (4.2%) *Costco Wholesale Corp. ............. 403,000 16,555,240 Wal-Mart Stores, Inc. ............... 1,005,700 49,078,160 -------------- 65,633,400 -------------- RETAIL - DRUG STORE (0.5%) Walgreen Co. ........................ 210,000 7,171,500 -------------- RETAIL - REGIONAL DEPARTMENT STORE (0.8%) *Kohl's Corp. ....................... 200,819 12,597,376 -------------- RETAIL - TOY STORE (0.9%) *Toys "R" Us, Inc. .................. 577,500 14,293,125 -------------- SAVINGS & LOAN - THRIFTS (0.5%) Washington Mutual, Inc. ............. 210,000 7,885,500 -------------- SEMICONDUCTOR COMPONENTS - INTEGRATED CIRCUITS (0.5%) *Taiwan Semiconductor Manufacturing Company Ltd. ADR................... 484,260 7,355,909 --------------
See Accompanying Notes to Financial Statements 44 46 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
SHARES OR PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------ SEMICONDUCTOR EQUIPMENT (2.6%) *Applied Materials, Inc. ............ 170,300 $ 8,361,730 *KLA-Tencor Corp. ................... 343,300 20,072,751 *Novellus Systems, Inc. ............. 212,000 12,039,480 -------------- 40,473,961 -------------- TELECOMMUNICATIONS SERVICES (0.4%) *Amdocs Ltd. ........................ 109,600 5,901,960 -------------- TELECOMMUNICATION EQUIPMENT (0.6%) *Comverse Technology, Inc. .......... 152,150 8,766,883 -------------- TELEPHONE - INTEGRATED (2.1%) Qwest Communications International, Inc. .............................. 369,072 11,762,325 Sprint Corp. (Fon Group)............. 419,200 8,954,112 Verizon Communications, Inc. ........ 238,900 12,781,150 -------------- 33,497,587 -------------- TELEVISION (0.9%) *Univision Communications, Inc. (Class A).......................... 324,000 13,860,720 -------------- TOBACCO (1.0%) Philip Morris Companies, Inc. ....... 315,000 15,986,250 -------------- Total Common Stocks (Cost $1,228,946,963).................. 1,533,912,573 -------------- CONVERTIBLE BONDS (0.7%) TELECOM SERVICES Amdocs Ltd. (144A) 2.00% 06/01/2008 (Cost $12,017,000)................. $12,200,000 11,483,250 -------------- REPURCHASE AGREEMENT (1.1%) J.P. Morgan Securities, Inc. 3.94% Dated 06/29/2001, due 07/02/2001 in the amount of $16,595,081. Collateralized by U.S. Treasury Notes 7.25% due 08/15/2004 U.S. Treasury Bonds 5.375% to 15.75% due 08/15/2001 to 02/15/2031 U.S. Treasury Strips due 08/15/2001 to 08/15/2028 (Cost $16,593,288)........ 16,593,288 16,593,288 -------------- TOTAL INVESTMENTS (99.9%) (Cost $1,257,557,251).................. 1,561,989,111 OTHER ASSETS LESS LIABILITIES (0.1%).... 1,761,502 -------------- NET ASSETS (100.0%)..................... $1,563,750,613 ============== * Non-income producing
COLUMBIA INTERNATIONAL STOCK FUND JUNE 30, 2001 (UNAUDITED) SHARES VALUE ----------------------------------------------------------------------- COMMON STOCKS (89.9%) AUSTRALIA (2.3%) Australia & New Zealand Banking Group Ltd. (Banks)................ 104,500 $ 897,563 Coles Myer Ltd. (General Retailers)........................ 105,600 339,110 Foster's Brewing Group Ltd. (Beverages)....................... 227,600 633,742 Origin Energy Ltd. (Oil/Gas)........ 603,700 920,242 Suncorp-Metway Ltd. (Banks)......... 107,200 817,262 -------------- 3,607,919 -------------- CANADA (1.8%) Alberta Energy Co., Ltd. (Oil/Gas)......................... 28,800 1,186,115 Alcan, Inc. (Mining)................ 19,000 798,782 Bombardier, Inc. (Class B) (Engineering/Machinery)........... 60,000 901,447 -------------- 2,886,344 -------------- DENMARK (0.4%) Vestas Wind Systems AS (Engineering/Machinery)........... 11,700 545,503 -------------- FINLAND (1.1%) Nokia Corp., ADR (Information Technology Hardware).............. 42,000 925,680 Stora Enso Oyj (Forestry/Paper)..... 73,400 795,368 -------------- 1,721,048 -------------- FRANCE (8.5%) Accor SA (Leisure/Entertainment/ Hotels)........................... 20,500 865,129 Assurances Generales de France (Insurance)....................... 17,300 962,218 Aventis SA (Pharmaceuticals)........ 14,400 1,149,572 BNP Paribas (Banks)................. 14,600 1,270,597 *Business Objects SA, ADR (Software/ Computer Services)................ 9,450 223,020 Coflexip SA, ADR (Oil/Gas).......... 8,700 562,455 *European Aeronautic Defence and Space Co. (Aerospace/Defense)..... 26,900 495,306 Groupe Danone SA (Food Producers/Processors)............. 5,100 699,866 Lafarge SA (Construction/Building Materials)........................ 12,300 1,051,691 *Orange SA (Telecommunication Services)......................... 48,000 390,099 Pernod-Ricard SA (Beverages)........ 12,000 841,150 PSA Peugeot Citroen (Automobiles)... 5,800 1,574,667 Total Fina Elf SA (Oil/Gas)......... 8,300 1,162,185
See Accompanying Notes to Financial Statements 45 47 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
COLUMBIA INTERNATIONAL STOCK FUND (CONT.) JUNE 30, 2001 (UNAUDITED) SHARES VALUE ----------------------------------------------------------------------- Union du Credit-Bail Immobilier (Real Estate)..................... 15,000 $ 813,975 Vinci SA (Construction/Building Materials)........................ 19,000 1,210,381 -------------- 13,272,311 -------------- GERMANY (3.7%) Allianz AG (Insurance).............. 2,950 860,970 Bayerische Motoren Werke (BMW) AG (Automobiles)..................... 48,500 1,605,389 Beiersdorf AG (Personal Care/ Household Products)............... 5,200 543,666 Deutsche Bank AG (Banks)............ 14,100 1,010,314 Muenchener Rueckversicherungs- Gesellschaft AG (Insurance)....... 3,700 1,031,154 Siemens AG (Electronic/Electrical Equipment)........................ 12,525 768,737 -------------- 5,820,230 -------------- HONG KONG (0.6%) Dah Sing Financial Group (Banks).... 114,200 590,061 Great Eagle Holdings Ltd. (Real Estate)........................... 285,000 396,461 -------------- 986,522 -------------- IRELAND (0.8%) *Elan Corp. plc, ADR (Pharmaceuticals)................. 18,400 1,122,400 *Parthus Technologies plc (Information Technology Hardware)......................... 236,000 180,892 -------------- 1,303,292 -------------- ITALY (5.2%) Assicurazioni Generali S.p.A (Insurance)....................... 33,000 991,755 Eni S.p.A (Oil/Gas)................. 97,450 1,187,972 Luxottica Group S.p.A, ADR (Health).......................... 71,000 1,136,000 Riunione Adriatica di Sicurta S.p.A (Insurance)....................... 77,100 947,726 Saipem S.p.A (Oil/Gas).............. 174,000 953,049 San Paolo-Imi S.p.A (Banks)......... 106,700 1,367,578 Telecom Italia S.p.A, ADR (Telecommunication Services)...... 7,300 642,400 Unicredito Italiano S.p.A (Banks)... 229,500 985,037 -------------- 8,211,517 --------------
SHARES VALUE ----------------------------------------------------------------------- JAPAN (25.5%) *All Nippon Airways Co., Ltd. (Transport)....................... 145,000 $ 467,384 Banyu Pharmaceutical Co., Ltd. (Pharmaceuticals)................. 70,000 1,282,518 Canon, Inc. (Electronic/Electrical Equipment)........................ 20,000 808,239 East Japan Railway Co. (Transport)....................... 155 894,836 Fuji Photo Film Co., Ltd. (Media/ Photography)...................... 37,000 1,596,112 Fujitsu Ltd. (Information Technology Hardware)......................... 52,000 546,203 Hisamitsu Pharmaceutical Co., Inc. (Pharmaceutical).................. 39,000 624,798 Hitachi Ltd. (Electronic/Electrical Equipment)........................ 80,000 785,788 Honda Motor Co., Ltd. (Automobiles)..................... 29,000 1,274,259 Japan OTC Equity Fund (Investment Companies)........................ 56,400 388,596 JGC Corp. (Engineering/Machinery)... 229,000 1,909,625 Jusco Co., Ltd. (General Retailers)........................ 60,000 1,323,010 Kappa Create Co., Ltd. (Restaurants/ Pubs/Breweries)................... 11,000 476,284 Katokichi Co., Ltd. (Food Producers/ Processors)....................... 32,000 756,922 Mitsubishi Estate Co., Ltd. (Real Estate)........................... 130,000 1,195,600 Mitsubishi Heavy Inds., Ltd. (Engineering/Machinery)........... 362,000 1,651,582 NEC Corp. (Information Technology Hardware)......................... 27,000 364,790 Net One Systems Co., Ltd. (Information Technology Hardware)......................... 28 624,140 Nintendo Co., Ltd. (Leisure/ Entertainment/Hotels)............. 8,000 1,456,113 Nippon Kanzai Co., Ltd. (Construction/Building Materials)........................ 25,000 348,794 Nippon Steel Corp. (Steel/Other Materials)........................ 760,000 1,151,741 Nippon Telegraph & Telephone Corp. (Telecommunication Services)...... 175 912,075 Nipponkoa Insurance Co., Ltd. (Insurance)....................... 155,000 581,643 Nissan Motor Co., Ltd. (Automobiles)..................... 167,000 1,152,919 Nomura Securities Co., Ltd., The (Specialty/Other Finance)......... 89,000 1,705,561 NTT DoCoMo, Inc. (Telecommunication Services)......................... 77 1,339,768
See Accompanying Notes to Financial Statements 46 48 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
SHARES VALUE ----------------------------------------------------------------------- Olympus Optical Co., Ltd. (Electronic/Electrical Equipment)........................ 62,000 $ 993,268 Pioneer Corp. (Electronic/Electrical Equipment)........................ 41,000 1,245,955 Q.P. Corp. (Food Producers/ Processors)....................... 140,000 1,297,673 Rohm Co., Ltd. (Information Technology Hardware).............. 7,000 1,087,755 Sanyo Electric Co., Ltd. (Electronic/ Electrical Equipment)........................ 62,000 391,739 Sazaby, Inc. (Household Goods/ Textiles)......................... 13,000 568,093 Shionogi & Co., Ltd. (Pharmaceuticals)................. 59,000 1,229,999 Sony Corp. (Household Goods/ Textiles)......................... 25,000 1,643,740 Takeda Chemical Inds., Ltd. (Pharmaceuticals)................. 17,000 790,599 Tokyu Corp. (Transport)............. 350,000 1,908,342 Toyota Motor Corp. (Automobiles).... 47,000 1,654,404 *Trend Micro, Inc. (Software/Computer Services)...... 8,000 300,203 *UFJ Holdings, Inc. (Banks)......... 119 640,249 Yamada Denki Co., Ltd. (General Retailers)........................ 7,000 572,503 -------------- 39,943,822 -------------- KOREA (5.4%) *Good Morning Securities Co. (Specialty/Other Finance)......... 195,000 772,231 *Humax Co., Ltd. (Electronic/Electrical Equipment)........................ 65,000 954,667 Hyundai Mobis (Engineering/ Machinery)........................ 100,500 1,081,930 *Kia Motors Corp. (Automobiles)..... 102,000 854,932 Kookmin Bank (Banks)................ 71,500 959,415 Pacific Corp. (Personal Care/ Household Products)............... 41,000 2,027,215 Samsung Electronics Co., Ltd., GDR (Information Technology Hardware)......................... 25,800 806,250 Shinhan Bank (Banks)................ 92,500 949,572 -------------- 8,406,212 -------------- NETHERLANDS (3.7%) *ASML Holding NV (Information Technology Hardware).............. 27,000 600,750 ING Groep NV (Insurance)............ 19,600 1,280,959 *Jomed NV (Health).................. 13,000 368,876 Koninklijke Philips Electronics NV (Electronic/Electrical Equipment)........................ 30,800 816,386
SHARES VALUE ----------------------------------------------------------------------- Royal Dutch Petroleum Co. (Oil/Gas)......................... 20,900 $ 1,202,789 STMicroelectronics NV (Information Technology Hardware).............. 22,500 765,000 TNT Post Group NV (Support Services)......................... 36,400 759,592 -------------- 5,794,352 -------------- NORWAY (0.7%) Norske Skogindustrier ASA (Forestry/ Paper)............................ 26,700 404,696 *Statoil ASA (Oil/Gas).............. 89,300 660,027 -------------- 1,064,723 -------------- SPAIN (2.8%) Altadis SA (Tobacco)................ 57,800 824,009 Grupo Dragados SA (Construction/ Building Materials)............... 140,700 1,768,815 Grupo Ferrovial SA (Construction/ Building Materials)............... 53,400 882,435 NH Hoteles SA (Leisure/ Entertainment/Hotels)............. 71,500 845,599 -------------- 4,320,858 -------------- SWEDEN (0.5%) Skanska AB (Class B) (Construction/ Building Materials)............... 86,000 813,779 -------------- SWITZERLAND (4.2%) Julius Baer Holding Ltd. (Bearer) (Banks)........................... 250 961,833 Nestle SA (Food Producers/ Processors)....................... 8,600 1,827,802 Novartis AG (Pharmaceuticals)....... 20,600 745,559 Swiss RE (Insurance)................ 275 549,587 Synthes-Stratec, Inc. (Health)...... 1,300 797,786 Tecan Group AG (Health)............. 10,100 837,288 UBS AG (Banks)...................... 6,400 916,905 -------------- 6,636,760 -------------- UNITED KINGDOM (22.0%) Aggreko plc (Support Services)...... 84,900 561,200 *Amdocs Ltd. (Software/Computer Services)......................... 13,800 743,130 AMEC plc (Construction/Building Materials)........................ 85,000 603,702 *ARM Holdings plc (Information Technology/Hardware).............. 144,200 544,530 AstraZeneca plc (Pharmaceuticals)... 22,100 1,029,736 BAE Systems plc (Aerospace/ Defense).......................... 179,000 857,200 Barclays plc (Banks)................ 65,339 2,003,277
See Accompanying Notes to Financial Statements 47 49 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
COLUMBIA INTERNATIONAL STOCK FUND (CONT.) JUNE 30, 2001 (UNAUDITED) SHARES VALUE ----------------------------------------------------------------------- Barratt Developments plc (Real Estate)........................... 141,000 $ 711,911 Berkeley Group plc, The (Real Estate)........................... 93,000 939,770 BG Group plc (Oil/Gas).............. 270,200 1,064,984 BP plc, ADR (Oil/Gas)............... 26,800 1,335,980 *Cambridge Antibody Technology Group plc (Health)...................... 18,500 539,105 Capita Group plc (Support Services)......................... 81,900 532,731 *Compass Group plc (Leisure/ Entertainment/Hotels)............. 139,035 1,112,624 Debenhams plc (General Retailers)... 140,000 893,914 Diageo plc (Beverages).............. 110,700 1,214,379 *easyJet Airline Co. (Transport).... 131,500 801,728 Enterprise Oil plc (Oil/Gas)........ 74,500 620,283 *GlaxoSmithKline plc (Pharmaceuticals)................. 63,526 1,786,873 Hanson plc (Construction/Building Materials)........................ 121,250 892,710 HSBC Holdings plc (Banks)........... 90,300 1,069,965 *International Power plc (Electricity)..................... 212,100 894,153 National Grid Group plc (Electricity)..................... 102,100 752,435 *NDS Group plc, ADR (Software/ Computer Services)................ 13,300 450,870 Next plc (General Retailers)........ 47,500 621,282 Pearson plc (Media/Photography)..... 53,000 873,606 Prudential plc (Life Assurance)..... 62,436 756,050 Reckitt Benckiser plc (Personal Care/ Household Products)......... 35,100 505,991 Royal Bank of Scotland Group plc (Banks)........................... 86,017 1,895,681 Scottish and Southern Energy plc (Electricity)..................... 89,400 842,412 Shell Transport & Trading Co. plc (Oil/Gas)......................... 141,500 1,176,132 Shell Transport & Trading Co., ADR (Oil/Gas)......................... 12,600 634,284 *Shire Pharmaceuticals Group plc (Pharmaceuticals)................. 73,800 1,343,083 Tesco plc (Food/Drug Retailers)..... 208,200 751,070 Vodafone Group plc (Telecommunication Services)...... 702,800 1,556,770
SHARES OR PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- William Morrison Supermarkets plc (Food/Drug Retailers)............. 314,800 $ 941,925 WPP Group plc (Media/Photography)... 67,600 665,513 -------------- 34,520,989 -------------- UNITED STATES (0.7%) *ResMed, Inc. (Health).............. 7,700 389,235 Schlumberger Ltd. (Oil/Gas)......... 12,400 652,860 -------------- 1,042,095 -------------- Total Common Stock (Cost $142,736,368)................... 140,898,276 -------------- PREFERRED STOCKS (0.5%) Germany Fresenuis AG (Health)............... 5,000 473,866 Hugo Boss AG (Household Goods/ Textiles)......................... 1,100 306,839 -------------- (Cost $917,247)................... 780,705 -------------- REPURCHASE AGREEMENTS (5.8%) J.P. Morgan Securities, Inc. 3.94% Dated 06/29/2001, due 07/02/2001 in the amount of $7,909,999. Collateralized by U.S. Treasury Notes 7.25% due 08/15/2004 U.S. Treasury Bonds 5.375% to 15.75% due 08/15/2001 to 02/15/2031 U.S. Treasury Strips due 08/15/2001 to 08/15/2028...... $ 7,909,144 7,909,144 Merrill Lynch 3.95% dated 06/29/2001, due 07/02/2001 in the amount of $1,100,119. Collateralized by U.S. Treasury Strips 8.125% to 8.75% due 08/15/2012 to 05/15/2025.......... 1,100,000 1,100,000 -------------- Total Repurchase Agreements (Cost $9,009,144)........................... 9,009,144 -------------- TOTAL INVESTMENTS (96.2%) (Cost $152,662,759)......................... 150,688,125 OTHER ASSETS LESS LIABILITIES (3.8%)... 6,022,678 -------------- NET ASSETS (100%)...................... $ 156,710,803 ============== * Non-income producing
See Accompanying Notes to Financial Statements 48 50 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
COLUMBIA SPECIAL FUND JUNE 30, 2001 (UNAUDITED) SHARES VALUE ----------------------------------------------------------------------- COMMON STOCKS (91.9%) ADVERTISING AGENCIES (0.5%) Omnicom Group, Inc. ................ 53,400 $ 4,592,400 -------------- AEROSPACE & DEFENSE (0.1%) Embraer - Empresa Brasileira de Aeronautica SA ADR ............... 33,900 1,323,795 -------------- APPAREL MANUFACTURERS (0.5%) *Jones Apparel Group, Inc. ......... 111,000 4,795,200 -------------- APPLICATIONS SOFTWARE (4.7%) *Intuit, Inc. ...................... 373,100 14,920,269 *Mercury Interactive Corp. ......... 123,800 7,415,620 *Peregrine Systems, Inc. ........... 365,500 10,599,500 *Rational Software Corp. ........... 65,600 1,840,080 *Siebel Systems, Inc. .............. 173,250 8,125,425 -------------- 42,900,894 -------------- AUDIO & VIDEO PRODUCTS (1.0%) *Polycom, Inc. ..................... 400,700 9,252,163 -------------- BUSINESS-TO-BUSINESS/E-COMMERCE (0.5%) *i2 Technologies, Inc. ............. 198,240 3,925,152 *WebMethods, Inc. .................. 26,700 565,506 -------------- 4,490,658 -------------- BROADCAST SERVICES & PROGRAMMING (2.4%) *AT&T Corp. - Liberty Media Group (Class A)......................... 548,400 9,591,516 *Clear Channel Communications, Inc. ............................. 194,900 12,220,230 -------------- 21,811,746 -------------- BUILDING & CONSTRUCTION PRODUCTS (1.0%) Masco Corp. ........................ 361,640 9,026,534 -------------- BUILDING PRODUCTS - CEMENT/AGGREGATE (1.7%) Martin Marietta Materials, Inc. .... 323,200 15,995,168 -------------- BUILDING - RESIDENTIAL/COMMERCIAL (0.9%) Centex Corp. ....................... 199,000 8,109,250 -------------- CABLE TELEVISION (2.0%) *Adelphia Communications Corp. (Class A)......................... 237,900 9,753,900 *Charter Communications, Inc. (Class A)................................ 380,600 8,887,010 -------------- 18,640,910 -------------- CASINO HOTELS (0.8%) *Harrah's Entertainment, Inc. ...... 204,000 7,201,200 -------------- CELLULAR TELECOMMUNICATIONS (1.0%) *Western Wireless Corp. (Class A)... 213,640 9,186,520 --------------
SHARES VALUE ----------------------------------------------------------------------- COMMERCIAL BANKS (1.6%) M&T Bank Corp. ..................... 108,840 $ 8,217,420 TCF Financial Corp. ................ 139,730 6,470,896 -------------- 14,688,316 -------------- COMPUTER SERVICES (1.2%) *DST Systems, Inc. ................. 211,740 11,158,698 -------------- DECISION SUPPORT SOFTWARE (0.5%) *Wind River Systems, Inc. .......... 274,100 4,785,786 -------------- DIAGNOSTIC EQUIPMENT (1.1%) *Cytyc Corp. ....................... 433,800 9,999,090 -------------- DRUG DELIVERY SYSTEMS (1.6%) *ANDRX Group........................ 195,500 15,053,500 -------------- EDUCATIONAL SOFTWARE (0.9%) *SmartForce plc ADR................. 241,550 8,509,806 -------------- ELECTRIC - GENERATION (1.5%) *AES Corp........................... 314,400 13,534,920 -------------- ELECTRIC - INTEGRATED (0.5%) Cia de Bebidas das Americas ADR..... 178,320 4,128,108 -------------- ELECTRONIC COMPONENTS - MISC. (1.0%) *Sanmina Corp. ..................... 382,600 8,956,666 -------------- ELECTRONIC COMPONENTS - SEMICONDUCTORS (4.6%) *Altera Corp. ...................... 912,000 26,448,000 *Chartered Semiconductor Manufacturing Ltd. ADR............ 164,110 4,143,778 *LSI Logic Corp. ................... 307,800 5,786,640 *National Semiconductor Corp. ...... 203,200 5,917,184 -------------- 42,295,602 -------------- ELECTRONIC DESIGN AUTOMATION (2.6%) *Cadence Design Systems, Inc. ...... 379,200 7,064,496 *Synopsys, Inc. .................... 340,000 16,452,600 -------------- 23,517,096 -------------- ENTERPRISE SOFTWARE - SERVICES (0.4%) *Informatica Corp................... 212,800 3,694,208 -------------- ENTERTAINMENT SOFTWARE (1.4%) *Electronic Arts, Inc. ............. 217,600 12,599,040 -------------- FINANCIAL GUARANTEE INSURANCE (2.6%) MGIC Investment Corp. .............. 175,540 12,751,226 Radian Group, Inc. ................. 264,920 10,716,014 -------------- 23,467,240 -------------- HEALTH CARE COST CONTAINMENT/MANAGEMENT (2.5%) *Caremark Rx, Inc. ................. 731,800 12,038,110 McKesson HBOC, Inc. ................ 279,500 10,375,040 -------------- 22,413,150 --------------
See Accompanying Notes to Financial Statements 49 51 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
COLUMBIA SPECIAL FUND (CONT.) JUNE 30, 2001 (UNAUDITED) SHARES VALUE ----------------------------------------------------------------------- HOTELS & MOTELS (0.4%) Starwood Hotels & Resorts Worldwide, Inc. ............................. 108,100 $ 4,029,968 -------------- HUMAN RESOURCES (0.6%) *Robert Half International, Inc. ... 235,200 5,854,128 -------------- INDEPENDENT POWER PRODUCER (1.8%) *Calpine Corp. ..................... 254,100 9,604,980 *Mirant Corp. ...................... 200,300 6,890,320 -------------- 16,495,300 -------------- INSTRUMENTS - CONTROLS (0.9%) *Thermo Electron Corp. ............. 368,100 8,105,562 -------------- INSTRUMENTS - SCIENTIFIC (0.3%) *Waters Corp. ...................... 89,200 2,462,812 -------------- INTERNET INFRASTRUCTURE SOFTWARE (0.4%) *TIBCO Software, Inc. .............. 278,200 3,552,614 -------------- MEDICAL INFORMATION SYSTEMS (1.7%) IMS Health, Inc. ................... 556,300 15,854,550 -------------- MEDICAL INSTRUMENTS (1.9%) Biomet, Inc. ....................... 172,200 8,275,932 *Boston Scientific Corp. ........... 564,300 9,593,100 -------------- 17,869,032 -------------- MEDICAL - DRUGS (2.5%) *Biovail Corp. ..................... 238,800 10,387,800 *Shire Pharmaceuticals Group plc ADR............................... 231,300 12,837,150 -------------- 23,224,950 -------------- MEDICAL LABS & TESTING SERVICES (1.2%) *Laboratory Corporation of America Holdings.......................... 139,020 10,690,638 -------------- MEDICAL PRODUCTS (1.2%) *MiniMed, Inc. ..................... 229,700 11,025,600 -------------- MEDICAL - BIOMEDICAL & GENETIC (3.6%) *Enzon, Inc. ....................... 185,648 11,603,000 *Genentech, Inc. ................... 219,700 12,105,470 *Human Genome Sciences, Inc. ....... 44,700 2,693,175 *Inhale Therapeutic Systems, Inc. ............................. 107,800 2,479,400 *Millennium Pharmaceuticals, Inc. ............................. 105,000 3,735,900 -------------- 32,616,945 -------------- MEDICAL - GENERIC DRUGS (0.8%) *Barr Laboratories, Inc............. 97,900 6,893,139 -------------- MEDICAL - HMO (0.8%) *WellPoint Health Networks, Inc. ... 77,500 7,303,600 --------------
SHARES VALUE ----------------------------------------------------------------------- MEDICAL - HOSPITALS (2.6%) *Health Management Associates, Inc. (Class A)......................... 326,400 $ 6,867,456 *Tenet Healthcare Corp. ............ 323,900 16,710,001 -------------- 23,577,457 -------------- MOTION PICTURES & SERVICES (0.9%) *Macrovision Corp. ................. 118,540 8,119,990 -------------- MULTIMEDIA (1.1%) Gannett Co. ........................ 93,100 6,135,290 *Gemstar-TV Guide International, Inc. ............................. 97,800 4,303,200 -------------- 10,438,490 -------------- OIL & GAS DRILLING (6.3%) *Nabors Industries, Inc............. 554,100 20,612,520 *Noble Drilling Corp. .............. 549,300 17,989,575 Transocean Sedco Forex, Inc. ....... 464,350 19,154,438 -------------- 57,756,533 -------------- OIL - FIELD MACHINERY & EQUIPMENT (1.5%) *Grant Prideco, Inc. ............... 367,200 6,422,328 *National-Oilwell, Inc. ............ 254,900 6,831,320 -------------- 13,253,648 -------------- OIL - FIELD SERVICES (0.3%) *Hanover Compressor Co. ............ 86,400 2,858,976 -------------- PIPELINES (1.5%) Dynegy, Inc. (Class A).............. 304,800 14,173,200 -------------- PRINTING - COMMERCIAL (0.7%) *Valassis Communications, Inc. ..... 184,800 6,615,840 -------------- PUBLISHING - NEWSPAPERS (1.0%) New York Times Co. (Class A)........ 226,700 9,521,400 -------------- RADIO (1.9%) *Cox Radio, Inc. (Class A).......... 145,200 4,043,820 *Hispanic Broadcasting Corp. ....... 463,200 13,289,208 -------------- 17,333,028 -------------- RETAIL - APPAREL & SHOES (0.8%) Limited, Inc. ...................... 428,760 7,083,115 -------------- RETAIL - DISCOUNT (1.4%) Dollar General Corp. ............... 296,750 5,786,625 Family Dollar Stores, Inc. ......... 263,280 6,747,866 -------------- 12,534,491 -------------- RETAIL - RESTAURANTS (3.3%) *Brinker International, Inc. ....... 357,750 9,247,838 *Outback Steakhouse, Inc. .......... 474,400 13,662,720 *TRICON Global Restaurants, Inc. ... 168,200 7,383,980 -------------- 30,294,538 --------------
See Accompanying Notes to Financial Statements 50 52 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
SHARES VALUE ----------------------------------------------------------------------- SCHOOLS (1.0%) *Apollo Group, Inc. (Class A)....... 219,450 $ 9,315,652 -------------- SEMICONDUCTOR COMPONENTS - INTEGRATED CIRCUITS (2.3%) *Integrated Device Technology, Inc. ............................. 232,100 7,355,249 *Micrel, Inc. ...................... 185,880 6,134,040 *Taiwan Semiconductor Manufacturing Company Ltd. ADR.................. 521,416 7,920,309 -------------- 21,409,598 -------------- SEMICONDUCTOR EQUIPMENT (1.0%) *ASML Holding NV.................... 105,500 2,347,375 *KLA-Tencor Corp. .................. 61,440 3,592,397 *Novellus Systems, Inc. ............ 60,300 3,424,437 -------------- 9,364,209 -------------- TELECOMMUNICATION EQUIPMENT (0.5%) *ADC Telecommunications, Inc. ...... 266,200 1,756,920 Ericsson, LM Telephone Co. ADR (Class B)......................... 545,600 2,957,152 -------------- 4,714,072 -------------- TELEVISION (1.9%) *Univision Communications, Inc. (Class A)......................... 410,600 17,565,468 -------------- THERAPEUTICS (0.6%) *Gilead Sciences, Inc. ............. 100,600 5,853,914 -------------- TOYS (1.3%) Mattel, Inc. ....................... 620,500 11,739,860 -------------- TRAVEL SERVICES (0.7%) *Sabre Holdings Corp. .............. 129,560 6,478,000 -------------- WEB HOSTING - DESIGN (0.1%) *Macromedia, Inc. .................. 24,050 432,900 -------------- Total Common Stocks (Cost $766,060,166)................... 842,540,881 -------------- CONVERTIBLE PREFERRED STOCK (0.1%) TELECOMMUNICATIONS EQUIPMENT +*Nanovation Technologies, Inc. (Private Placement) (Cost $2,164,275)....................... 144,285 721,425 -------------- PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- REPURCHASE AGREEMENTS (6.5%) J.P. Morgan Securities, Inc. 3.94% Dated 06/29/2001, due 07/02/2001 in the amount of $45,816,867. Collateralized by U.S. Treasury Notes 7.25% due 08/15/2004 U.S. Treasury Bonds 5.375% to 15.75% due 08/15/2001 to 02/15/2031 U.S. Treasury Strips due 08/15/2001 to 08/15/2028...... $45,811,916 $ 45,811,916 Merrill Lynch 3.95% dated 06/29/2001, due 07/02/2001 in the amount of $14,001,517. Collateralized by U.S. Treasury Strips 8.125% to 8.75% due 08/15/2012 to 05/15/2025........................ 14,000,000 14,000,000 -------------- Total Repurchase Agreements (Cost $59,811,916).................... 59,811,916 -------------- TOTAL INVESTMENTS (98.5%) (Cost $828,036,357)................... 903,074,222 OTHER ASSETS LESS LIABILITIES (1.5%)... 13,350,268 -------------- NET ASSETS (100.0%).................... $ 916,424,490 ============== * Non-income producing + Nanovation Technologies, Inc., filed a bankruptcy petition for reorganization on July 25, 2001.
COLUMBIA SMALL CAP FUND JUNE 30, 2001 (UNAUDITED) SHARES VALUE ----------------------------------------------------------------------- COMMON STOCKS (94.9%) ADVERTISING SALES (1.5%) *Lamar Advertising Co. ............. 190,100 $ 8,364,400 -------------- AIRLINES (1.9%) *Atlantic Coast Airlines Holdings, Inc. ............................. 354,000 10,616,460 -------------- APPAREL MANUFACTURERS (0.4%) *Quiksilver, Inc. .................. 91,300 2,282,500 --------------
See Accompanying Notes to Financial Statements 51 53 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
COLUMBIA SMALL CAP FUND (CONT.) JUNE 30, 2001 (UNAUDITED) SHARES VALUE ----------------------------------------------------------------------- APPLICATIONS SOFTWARE (2.4%) *Actuate Corp. ..................... 192,510 $ 1,838,470 *BSQUARE Corp. ..................... 163,200 1,715,232 *Caminus Corp. ..................... 117,670 3,173,560 *HNC Software, Inc. ................ 181,000 3,529,500 *National Instruments Corp. ........ 37,400 1,213,630 *OpenTV Corp. ...................... 162,100 2,277,505 -------------- 13,747,897 -------------- BATTERIES - BATTERY SYSTEMS (0.4%) *Wilson Greatbatch Technologies, Inc. ............................. 76,000 2,204,000 -------------- BUILDING - MOBILE & MANUFACTURED HOMES (1.0%) Clayton Homes, Inc. ................ 355,900 5,594,748 -------------- BUILDING - RESIDENTIAL & COMMERCIAL (0.5%) D.R. Horton, Inc. .................. 124,764 2,832,143 -------------- BUILDING & CONSTRUCTION (1.2%) *Insituform Technologies, Inc. (Class A)......................... 190,370 6,948,505 -------------- CIRCUIT BOARDS (0.1%) *Merix Corp. ....................... 24,050 420,634 -------------- COMMERCIAL SERVICES (1.8%) *Alliance Data Systems Corp. ....... 155,110 2,326,650 *Plexus Corp. ...................... 11,400 376,200 *Quintiles Transnational Corp. ..... 297,300 7,506,825 -------------- 10,209,675 -------------- COMPUTER AIDED DESIGN (0.5%) *Aspen Technology, Inc. ............ 117,900 2,853,180 -------------- COMPUTER SERVICES (0.8%) *Manhattan Associates, Inc. ........ 118,200 4,698,450 -------------- COMPUTERS - INTEGRATED SYSTEMS (0.3%) *Radisys Corp. ..................... 72,350 1,653,197 -------------- COMPUTERS - MEMORY DEVICES (1.5%) *VERITAS DGC, Inc. ................. 302,200 8,386,050 -------------- COMPUTERS - PERIPHERAL EQUIPMENT (1.6%) *Electronics for Imaging, Inc. ..... 315,650 9,311,675 -------------- CONSULTING SERVICES (1.2%) *Professional Detailing, Inc. ...... 76,900 7,074,800 -------------- DATA PROCESSING & MANAGEMENT (0.8%) *Documentum, Inc. .................. 184,800 2,387,616 Global Payments, Inc. .............. 78,200 2,353,820 -------------- 4,741,436 --------------
SHARES VALUE ----------------------------------------------------------------------- DECISION SUPPORT SOFTWARE (2.0%) *Precise Software Solutions Ltd. ... 269,900 $ 8,285,930 *Wind River Systems, Inc. .......... 165,100 2,882,646 -------------- 11,168,576 -------------- DIALYSIS CENTERS (1.7%) *DaVita, Inc. ...................... 487,100 9,902,743 -------------- DRUG DELIVERY SYSTEMS (1.8%) *Alkermes, Inc. .................... 131,000 4,598,100 *Noven Pharmaceuticals, Inc. ....... 151,200 5,927,040 -------------- 10,525,140 -------------- ELECTRONIC COMPONENTS - SEMICONDUCTORS (2.3%) *Lattice Semiconductor Corp. ....... 349,750 8,533,900 *Semtech Corp. ..................... 101,900 3,057,000 *Zoran Corp. ....................... 55,700 1,655,404 -------------- 13,246,304 -------------- ELECTRONIC CONNECTORS (0.6%) *Amphenol Corp. (Class A)........... 90,500 3,624,525 -------------- ELECTRONIC DESIGN AUTOMATION (1.5%) *Mentor Graphics Corp. ............. 475,150 8,315,125 -------------- ENTERPRISE SOFTWARE - SERVICES (2.1%) *Advent Software, Inc. ............. 63,170 4,011,295 *AremisSoft Corp. .................. 314,490 5,094,738 *Legato Systems, Inc. .............. 169,520 2,703,844 -------------- 11,809,877 -------------- ENVIRONMENTAL CONSULTING & ENGINEERING (1.6%) *Tetra Tech, Inc. .................. 329,250 8,955,600 -------------- E-SERVICES - CONSULTING (0.4%) *Digital Insight Corp. ............. 97,850 2,162,485 -------------- FOOD - RETAIL (0.5%) *Whole Foods Market, Inc. .......... 109,800 2,975,580 -------------- HAZARDOUS WASTE DISPOSAL (1.1%) *Stericycle, Inc. .................. 134,780 6,327,921 -------------- HEALTH CARE COST CONTAINMENT/MANAGEMENT (2.7%) *Caremark Rx, Inc. ................. 453,100 7,453,495 *First Health Group Corp. .......... 320,100 7,720,812 -------------- 15,174,307 -------------- HUMAN RESOURCES (0.6%) *On Assignment, Inc. ............... 193,000 3,474,000 -------------- INSTRUMENTS - SCIENTIFIC (0.3%) *FEI Co. ........................... 45,200 1,853,200 -------------- INSURANCE BROKERS (0.2%) *Willis Group Holdings Ltd. ........ 57,700 1,024,175 -------------- INTERNET INFRASTRUCTURE SOFTWARE (1.6%) *Retek, Inc. ....................... 187,647 8,995,797 --------------
See Accompanying Notes to Financial Statements 52 54 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
SHARES VALUE ----------------------------------------------------------------------- INTERNET INFRASTRUCTURE EQUIPMENT (0.5%) *Avocent Corp. ..................... 119,650 $ 2,722,038 -------------- INVESTMENT MANAGEMENT & ADVISER SERVICES (0.6%) Stewart, W.P. & Co., Ltd. .......... 149,300 3,657,850 -------------- MACHINERY - CONSTRUCTION & MINING (1.6%) +*Harnischfeger Industries, Inc. ... 331,600 5,438,240 *Terex Corp. ....................... 163,920 3,475,104 -------------- 8,913,344 -------------- MEDICAL INFORMATION SYSTEMS (2.3%) *Eclipsys Corp. .................... 468,270 13,158,387 -------------- MEDICAL INSTRUMENTS (1.0%) *Novoste Corp. ..................... 215,400 5,492,700 -------------- MEDICAL PRODUCTS (0.9%) *American Medical Systems Holdings, Inc. ............................. 333,600 5,120,760 -------------- MEDICAL - BIOMEDICAL & GENETIC (1.9%) *Arena Pharmaceuticals, Inc. ....... 105,800 3,225,842 *Bio-Technology General Corp. ...... 267,130 3,499,403 *Cell Genesys, Inc. ................ 52,100 1,068,050 *Transkaryotic Therapies, Inc. ..... 98,900 2,912,605 -------------- 10,705,900 -------------- MEDICAL - DRUGS (4.1%) *Biovail Corp. ..................... 137,000 5,959,500 *CIMA Labs, Inc. ................... 42,300 3,320,550 *First Horizon Pharmaceutical Corp. ............................ 137,800 4,423,380 *Priority Healthcare Corp. (Class B)................................ 12,100 342,188 *Salix Pharmaceuticals Ltd. ........ 59,700 1,471,605 *Shire Pharmaceuticals Group plc ADR............................... 139,040 7,716,720 -------------- 23,233,943 -------------- MEDICAL - GENERIC DRUGS (1.4%) *Barr Laboratories, Inc. ........... 115,300 8,118,273 -------------- MEDICAL - HOSPITALS (1.9%) *Province Healthcare Co. ........... 82,970 2,928,011 *Triad Hospitals, Inc. ............. 114,370 3,370,484 *Universal Health Services, Inc. (Class B)......................... 96,600 4,395,300 -------------- 10,693,795 -------------- MEDICAL - NURSING HOMES (0.6%) *Manor Care, Inc. .................. 112,200 3,562,350 -------------- MOTION PICTURES & SERVICES (0.0%) *Metro-Goldwyn-Mayer, Inc. ......... 4,700 106,455 -------------- NETWORKING PRODUCTS (0.0%) *Ixia............................... 15,300 290,700 --------------
SHARES VALUE ----------------------------------------------------------------------- OIL & GAS DRILLING (2.5%) *Marine Drilling Companies, Inc. ... 165,700 $ 3,166,527 *Noble Drilling Corp. .............. 25,900 848,225 *Patterson-UTI Energy Inc. ......... 262,000 4,681,940 *Precision Drilling Corp. .......... 185,150 5,784,086 -------------- 14,480,778 -------------- OIL - FIELD MACHINERY & EQUIPMENT (2.2%) *Grant Prideco, Inc. ............... 331,140 5,791,639 *National-Oilwell, Inc. ............ 262,900 7,045,720 -------------- 12,837,359 -------------- OIL - FIELD SERVICES (3.6%) Coflexip SA, ADR.................... 50,500 3,264,825 *Global Industries Ltd. ............ 311,300 3,881,911 *Hanover Compressor Co. ............ 120,000 3,970,800 *Petroleum Geo-Services ADR......... 452,100 4,570,731 *Stolt Offshore SA.................. 74,000 906,500 *Varco International, Inc. ......... 210,400 3,915,544 -------------- 20,510,311 -------------- POWER CONVERTER & SUPPLY EQUIPMENT (0.8%) *Artesyn Technologies, Inc. ........ 159,400 2,056,260 C&D Technologies, Inc. ............. 79,550 2,466,050 -------------- 4,522,310 -------------- RADIO (3.3%) *Emmis Communications Corp. (Class A)................................ 180,800 5,559,600 *Entercom Communications Corp. ..... 122,300 6,556,503 *Radio One, Inc. (Class D).......... 297,800 6,566,490 -------------- 18,682,593 -------------- REINSURANCE (0.4%) *Odyssey RE Holdings Corp. ......... 125,500 2,267,785 -------------- RESORTS & THEME PARKS (0.4%) Intrawest Corp. .................... 130,500 2,493,855 -------------- RESPIRATORY PRODUCTS (0.0%) *Respironics, Inc. ................. 3,050 90,768 -------------- RETAIL - APPAREL & SHOES (5.2%) *American Eagle Outfitters, Inc. ... 113,400 3,996,216 *AnnTaylor Stores Corp. ............ 212,000 7,589,600 *Charlotte Russe Holding, Inc. ..... 142,300 3,813,640 *Men's Wearhouse, Inc., The......... 197,410 5,448,516 *Pacific Sunwear of California, Inc. ............................. 158,800 3,561,884 *Venator Group, Inc. ............... 348,500 5,332,050 -------------- 29,741,906 -------------- RETAIL - ARTS & CRAFTS (1.1%) *Michaels Stores, Inc. ............. 147,250 6,037,250 --------------
See Accompanying Notes to Financial Statements 53 55 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
COLUMBIA SMALL CAP FUND (CONT.) JUNE 30, 2001 (UNAUDITED) SHARES VALUE ----------------------------------------------------------------------- RETAIL - HOME FURNISHINGS (0.4%) *Cost Plus, Inc. ................... 78,500 $ 2,355,000 -------------- RETAIL - JEWELRY (0.9%) *Zale Corp. ........................ 160,600 5,412,220 -------------- RETAIL - MAIL ORDER (1.6%) *Williams-Sonoma, Inc. ............. 234,600 9,107,172 -------------- RETAIL - RESTAURANTS (1.6%) *California Pizza Kitchen, Inc. .... 66,863 1,554,565 *Outback Steakhouse, Inc. .......... 271,600 7,822,080 -------------- 9,376,645 -------------- SCHOOLS (3.4%) *Apollo Group, Inc. (Class A)....... 67,300 2,856,885 Strayer Education, Inc. ............ 133,100 6,488,625 *Sylvan Learning Systems, Inc. ..... 402,950 9,791,685 -------------- 19,137,195 -------------- SEMICONDUCTOR COMPONENTS - INTEGRATED CIRCUITS (1.0%) *Cirrus Logic, Inc. ................ 98,550 2,269,607 *Genesis Microchip, Inc. ........... 56,600 2,046,090 *Integrated Circuit Systems, Inc. ............................. 81,540 1,565,568 -------------- 5,881,265 -------------- SEMICONDUCTOR EQUIPMENT (5.1%) *ASE Test Ltd. ..................... 72,700 929,833 *ASM International NV............... 159,900 3,174,015 *Asyst Technologies, Inc. .......... 201,100 2,714,850 *Axcelis Technologies, Inc. ........ 222,200 3,288,560 *Mattson Technology, Inc. .......... 219,060 3,829,169 *PRI Automation, Inc. .............. 49,200 911,430 *Rudolph Technologies, Inc. ........ 96,750 4,547,250 *Therma-Wave, Inc. ................. 203,200 3,875,024 *Ultratech Stepper, Inc. ........... 140,000 3,591,000 *Varian Semiconductor Equipment Associates, Inc. ................. 50,170 2,107,140 -------------- 28,968,271 -------------- TELECOMMUNICATION EQUIPMENT (1.1%) *Acterna Corp. ..................... 125,900 1,384,900 *Advanced Fibre Communications, Inc. ............................. 131,900 2,769,900 *Andrew Corp. ...................... 107,620 1,985,589 -------------- 6,140,389 --------------
SHARES OR PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- THERAPEUTICS (2.6%) *COR Therapeutics, Inc. ............ 135,080 $ 4,119,940 *Corixa Corp. ...................... 69,700 1,189,779 *Genta, Inc. ....................... 117,200 1,569,308 *Inspire Pharmaceuticals, Inc. ..... 130,000 1,820,000 *Medarex, Inc. ..................... 101,600 2,387,600 *Neurocrine Biosciences, Inc. ...... 88,690 3,546,713 -------------- 14,633,340 -------------- TRANSPORT - TRUCK (0.6%) *Swift Transportation Co., Inc. .... 179,070 3,448,888 -------------- WEB HOSTING - DESIGN (0.0%) *Macromedia, Inc. .................. 14,350 258,300 -------------- WEB PORTALS - INTERNET SERVICE PROVIDER (0.7%) *Trizetto Group, Inc. .............. 448,200 4,145,850 -------------- WIRELESS EQUIPMENT (0.7%) *Spectrian Corp. ................... 246,800 3,948,800 -------------- Total Common Stock (Cost $461,944,168)................... 541,729,850 -------------- CONVERTIBLE PREFERRED STOCK (0.0%) TELECOMMUNICATION EQUIPMENT +++*Nanovation Technologies, Inc. (Private Placement) (Cost $626,715)................... 41,781 208,905 -------------- REPURCHASE AGREEMENTS (6.7%) ++J.P. Morgan Securities, Inc. 3.94% Dated 06/29/2001, due 07/02/2001 in the amount of $27,405,033. Collateralized by U.S. Treasury Notes 7.25% due 08/15/2004 U.S. Treasury Bonds 5.375% to 15.75% due 08/15/2001 to 02/15/2031 U.S. Treasury Strips due 08/15/2001 to 08/15/2028...... $27,402,072 27,402,072
See Accompanying Notes to Financial Statements 54 56 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- Merrill Lynch 3.95% dated 06/29/2001, due 07/02/2001 in the amount of $10,701,159. Collateralized by U. S. Treasury Strips 8.125% to 8.75% due 08/15/2012 to 05/15/2025...... $10,700,000 $ 10,700,000 -------------- Total Repurchase Agreements (Cost $38,102,072).......................... 38,102,072 -------------- TOTAL INVESTMENTS (101.6%) (Cost $500,672,955)................... 580,040,827 OTHER ASSETS LESS LIABILITIES (-1.6%)............................... (9,416,122) -------------- NET ASSETS (100.0%).................... $ 570,624,705 ==============
* Non-income producing + Security purchased on when-issued basis. ++ A portion of this security was segregated at the custodian to cover a when-issued security. +++ Nanovation Technologies, Inc., filed a bankruptcy petition for reorganization on July 25, 2001.
COLUMBIA REAL ESTATE EQUITY FUND JUNE 30, 2001 (UNAUDITED) SHARES VALUE ----------------------------------------------------------------------- COMMON STOCKS (94.1%) CASINO HOTELS (2.6%) *MGM Mirage, Inc.................... 452,600 $ 13,559,896 -------------- FORESTRY (1.7%) Georgia-Pacific Corp. (Timber Group)............................ 247,700 8,855,275 -------------- HOTELS & MOTELS (5.1%) Starwood Hotels & Resorts Worldwide, Inc. ............................. 717,500 26,748,400 -------------- REAL ESTATE OPERATIONS/DEVELOPMENT (6.0%) *Catellus Development Corp. ........ 379,700 6,625,765 TrizecHahn Corp. ................... 1,353,000 24,611,070 -------------- 31,236,835 -------------- REAL ESTATE MANAGEMENT/SERVICES (3.6%) *Security Capital Group, Inc. (Class B)................................ 876,500 18,757,100 -------------- REAL ESTATE INVESTMENT TRUSTS (REITS) (75.1%) APARTMENTS (14.8%) Archstone Communities Trust....... 628,971 16,214,873 AvalonBay Communities, Inc. ...... 393,400 18,391,450 Camden Property Trust............. 289,500 10,624,650 Equity Residential Properties Trust........................... 430,953 24,370,392
SHARES VALUE ----------------------------------------------------------------------- Post Properties, Inc. ............ 205,800 $ 7,789,530 -------------- 77,390,895 -------------- DIVERSIFIED (8.6%) iStar Financial, Inc. ............ 416,950 11,757,990 Liberty Property Trust............ 279,300 8,267,280 Vornado Realty Trust.............. 636,800 24,860,672 -------------- 44,885,942 -------------- HOTELS (3.3%) Host Marriott Corp. .............. 1,380,700 17,286,364 -------------- OFFICE PROPERTY (26.9%) Alexandria Real Estate Equities, Inc. ........................... 252,700 10,057,460 Boston Properties, Inc. .......... 308,000 12,597,200 CarrAmerica Realty Corp. ......... 212,500 6,481,250 Cousins Properties, Inc. ......... 1,147,350 30,806,348 Equity Office Properties Trust.... 1,168,718 36,966,550 Prentiss Properties Trust......... 249,400 6,559,220 Reckson Associates Realty Corp. .......................... 520,700 11,976,100 Spieker Properties, Inc. ......... 430,000 25,778,500 -------------- 141,222,628 -------------- PAPER & RELATED PRODUCTS (1.3%) Plum Creek Timber Company, Inc.... 241,400 6,783,340 -------------- REGIONAL MALLS (10.1%) General Growth Properties, Inc. ........................... 676,400 26,014,344 Simon Property Group, Inc. ....... 902,556 27,049,603 -------------- 53,063,947 -------------- SHOPPING CENTERS (2.9%) Kimco Realty Corp. ............... 254,400 12,045,840 Pan Pacific Retail Properties, Inc. ........................... 124,300 3,231,800 -------------- 15,277,640 -------------- STORAGE (3.1%) Public Storage, Inc. ............. 503,932 14,941,584 Storage USA, Inc. ................ 41,100 1,479,600 -------------- 16,421,184 -------------- WAREHOUSE/INDUSTRIAL (4.1%) CenterPoint Properties Trust...... 107,600 5,401,520 First Industrial Realty Trust, Inc. ........................... 175,700 5,641,727 ProLogis Trust.................... 470,245 10,683,966 -------------- 21,727,213 -------------- Total Common Stocks (Cost $420,880,631)................... 493,216,659 --------------
See Accompanying Notes to Financial Statements 55 57 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
COLUMBIA REAL ESTATE EQUITY FUND (CONT.) JUNE 30, 2001 (UNAUDITED) PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- REPURCHASE AGREEMENTS (5.8%) J.P. Morgan Securities, Inc. 3.94% Dated 06/29/2001, due 07/02/2001 in the amount of $22,020,754. Collateralized by U.S. Treasury Notes 7.25% due 08/15/2004 U.S. Treasury Bonds 5.375% to 15.75% due 08/15/2001 to 02/15/2031 U.S. Treasury Strips due 08/15/2001 to 08/15/2028...... $22,018,375 $ 22,018,375 Merrill Lynch 3.95% dated 06/29/2001, due 07/02/2001 in the amount of $8,000,867. Collateralized by U.S. Treasury Strips 8.125% to 8.75% due 08/15/2012 to 05/15/2025...... 8,000,000 8,000,000 -------------- Total Repurchase Agreements (Cost $30,018,375).................... 30,018,375 -------------- TOTAL INVESTMENTS (99.9%) (Cost $450,899,006)................... 523,235,034 OTHER ASSETS LESS LIABILITIES (0.1%)... 773,561 -------------- NET ASSETS (100.0%).................... $ 524,008,595 ============== * Non-income producing
COLUMBIA TECHNOLOGY FUND JUNE 30, 2001 (UNAUDITED) SHARES VALUE ----------------------------------------------------------------------- COMMON STOCKS (95.1%) AEROSPACE & DEFENSE (0.1%) Embraer - Empresa Brasileira de Aeronautica SA ADR................ 520 $ 20,306 -------------- APPLICATIONS SOFTWARE (8.4%) *Actuate Corp. ..................... 19,911 190,150 *HNC Software, Inc. ................ 8,172 159,354 *Mercury Interactive Corp. ......... 1,780 106,622 *Microsoft Corp. ................... 2,140 155,364 *Peregrine Systems, Inc. ........... 8,760 254,040 *Rational Software Corp. ........... 4,415 123,841 *Siebel Systems, Inc. .............. 5,800 272,020 -------------- 1,261,391 -------------- AUDIO & VIDEO PRODUCTS (1.4%) *Polycom, Inc. ..................... 9,010 208,041 --------------
SHARES VALUE ----------------------------------------------------------------------- BUSINESS-TO-BUSINESS/E-COMMERCE (1.8%) *i2 Technologies, Inc. ............. 13,800 $ 273,240 -------------- CABLE TELEVISION (0.6%) *Charter Communications, Inc. (Class A)................................ 3,950 92,233 -------------- COMMERCIAL SERVICES - FINANCIAL (0.9%) *Concord EFS, Inc. ................. 2,700 140,427 -------------- COMMERCIAL SERVICES (1.1%) *Alliance Data Systems Corp. ....... 11,450 171,750 -------------- COMPUTER SERVICES (1.9%) *DST Systems, Inc. ................. 5,360 282,472 -------------- COMPUTERS (3.3%) *Apple Computer, Inc. .............. 9,250 215,063 International Business Machines Corp. ............................ 2,468 278,884 -------------- 493,947 -------------- COMPUTERS - MEMORY DEVICES (1.1%) *VERITAS Software Corp. ............ 2,550 169,651 -------------- COMPUTERS - PERIPHERAL EQUIPMENT (2.3%) *Electronics for Imaging, Inc. ..... 11,490 338,955 -------------- DECISION SUPPORT SOFTWARE (0.8%) *Wind River Systems, Inc. .......... 6,900 120,474 -------------- E-COMMERCE - SERVICES (1.1%) *eBay, Inc. ........................ 2,300 157,527 -------------- EDUCATIONAL SOFTWARE (1.3%) *SmartForce plc ADR................. 5,525 194,646 -------------- ELECTRONIC COMPONENTS - MISC. (1.0%) *Celestica, Inc. ................... 2,850 146,775 -------------- ELECTRONIC COMPONENTS - SEMICONDUCTORS (12.0%) *Agere Systems, Inc. (Class A)...... 12,150 91,125 *Altera Corp. ...................... 5,300 153,700 *Chartered Semiconductor Manufacturing Ltd. ADR............ 6,930 174,982 Intel Corp. ........................ 8,850 258,862 *IXYS Corp. ........................ 5,350 83,460 *Lattice Semiconductor Corp. ....... 9,840 240,096 *Micron Technology, Inc. ........... 4,400 180,840 *National Semiconductor Corp. ...... 11,700 340,704 *NVIDIA Corp. ...................... 1,300 120,575 *Semtech Corp. ..................... 5,370 161,100 -------------- 1,805,444 -------------- ELECTRONIC CONNECTORS (1.6%) *Amphenol Corp. (Class A)........... 6,030 241,502 -------------- ELECTRONIC FORMS (1.2%) Adobe Systems, Inc. ................ 3,750 176,250 --------------
See Accompanying Notes to Financial Statements 56 58 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
SHARES VALUE ----------------------------------------------------------------------- ENTERPRISE SOFTWARE - SERVICES (6.0%) *Advent Software, Inc. ............. 3,136 $ 199,136 *AremisSoft Corp. .................. 8,920 144,504 Computer Associates International, Inc. ............................. 9,410 338,760 *Oracle Corp. ...................... 4,400 83,600 *PeopleSoft, Inc. .................. 2,800 137,844 -------------- 903,844 -------------- ENTERTAINMENT SOFTWARE (1.9%) *Electronic Arts, Inc. ............. 5,040 291,816 -------------- E-SERVICES - CONSULTING (1.4%) *Digital Insight Corp. ............. 9,210 203,541 -------------- INSTRUMENTS - SCIENTIFIC (0.3%) *FEI Co. ........................... 1,050 43,050 -------------- INTERNET INFRASTRUCTURE EQUIPMENT (1.4%) *Avocent Corp. ..................... 8,963 203,908 -------------- INTERNET INFRASTRUCTURE SOFTWARE (3.6%) *Retek, Inc. ....................... 5,780 277,093 *TIBCO Software, Inc. .............. 20,210 258,082 -------------- 535,175 -------------- INTERNET SECURITY (0.2%) *Check Point Software Technologies Ltd. ............................. 670 33,882 -------------- MEDICAL INFORMATION SYSTEMS (1.2%) *Eclipsys Corp. .................... 6,605 185,601 -------------- MEDICAL - BIOMEDICAL & GENETIC (3.3%) *Bio-Technology General Corp. ...... 7,300 95,630 *Cell Genesys, Inc. ................ 4,150 85,075 *Enzon, Inc. ....................... 3,480 217,500 *Millennium Pharmaceuticals, Inc. ............................. 2,570 91,441 -------------- 489,646 -------------- MEDICAL - DRUGS (0.8%) *Salix Pharmaceuticals Ltd. ........ 4,630 114,129 -------------- MOTION PICTURES & SERVICES (1.7%) *Macrovision Corp. ................. 3,784 259,204 -------------- MULTIMEDIA (1.4%) *AOL Time Warner, Inc. ............. 3,950 209,350 -------------- NETWORKING PRODUCTS (2.4%) *Cisco Systems, Inc. ............... 8,150 148,330 *ONI Systems Corp. ................. 7,400 206,460 -------------- 354,790 -------------- POWER CONVERTER - SUPPLY EQUIPMENT (0.6%) C&D Technologies, Inc. ............. 3,148 97,588 --------------
SHARES VALUE ----------------------------------------------------------------------- SEMICONDUCTOR COMPONENTS - INTEGRATED CIRCUITS (7.9%) *Cirrus Logic, Inc. ................ 11,350 $ 261,391 *Integrated Circuit Systems, Inc. ............................. 4,590 88,128 *Integrated Device Technology, Inc. ............................. 4,470 141,654 *Micrel, Inc. ...................... 10,460 345,180 *Taiwan Semiconductor Manufacturing Company Ltd. ADR.................. 14,840 225,420 *Triquint Semiconductor, Inc. ...... 5,150 115,875 -------------- 1,177,648 -------------- SEMICONDUCTOR EQUIPMENT (9.6%) *Applied Materials, Inc. ........... 3,300 162,030 *ASE Test Ltd. ..................... 10,570 135,190 *ASM International NV............... 3,230 64,115 *ASML Holding NV.................... 5,805 129,161 *Axcelis Technologies, Inc. ........ 8,180 121,064 *KLA-Tencor Corp. .................. 1,365 79,812 *Lam Research Corp. ................ 5,715 169,450 *LTX Corp. ......................... 280 7,157 *Mattson Technology, Inc. .......... 8,760 153,125 *Novellus Systems, Inc. ............ 3,400 193,086 *Varian Semiconductor Equipment Associates, Inc. ................. 5,355 224,910 -------------- 1,439,100 -------------- TELECOMMUNICATIONS SERVICES (0.8%) *Amdocs Ltd. ....................... 2,300 123,855 -------------- TELECOMMUNICATION EQUIPMENT (2.3%) *Comverse Technology, Inc. ......... 2,590 149,236 Ericsson, LM Telephone Co. ADR (Class B)......................... 23,900 129,538 Nortel Networks Corp. .............. 6,950 63,175 -------------- 341,949 -------------- THERAPEUTICS (4.0%) *COR Therapeutics, Inc. ............ 7,800 237,900 *Genta, Inc. ....................... 10,780 144,344 *Medarex, Inc. ..................... 4,160 97,760 *Neurocrine Biosciences, Inc. ...... 3,060 122,369 -------------- 602,373 -------------- WEB PORTALS - INTERNET SERVICE PROVIDER (1.4%) *EarthLink, Inc. ................... 15,230 214,743 -------------- WIRELESS EQUIPMENT (1.0%) Motorola, Inc. ..................... 8,968 148,510 -------------- Total Common Stocks (Cost $12,977,043).................... 14,268,733 --------------
See Accompanying Notes to Financial Statements 57 59 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
COLUMBIA TECHNOLOGY FUND (CONT.) JUNE 30, 2001 (UNAUDITED) PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- REPURCHASE AGREEMENT (4.3%) J.P. Morgan Securities, Inc. 3.94% Dated 06/29/2001, due 07/02/2001 in the amount of $638,975. Collateralized by U.S. Treasury Notes 7.25% due 08/15/2004 U.S. Treasury Bonds 5.375% to 15.75% due 08/15/2001 to 02/15/2031 U.S. Treasury Strips due 08/15/2001 to 08/15/2028 (Cost $638,906)................... $ 638,906 $ 638,906 -------------- TOTAL INVESTMENTS (99.4%) (Cost $13,615,949).................... 14,907,639 OTHER ASSETS LESS LIABILITIES (0.6%)... 94,640 -------------- NET ASSETS (100.0%).................... $ 15,002,279 ============== * Non-income producing
COLUMBIA STRATEGIC VALUE FUND JUNE 30, 2001 (UNAUDITED) SHARES VALUE ----------------------------------------------------------------------- COMMON STOCKS (81.7%) AEROSPACE & DEFENSE (0.5%) *Raytheon Co. ...................... 15,000 $ 398,250 -------------- AGRICULTURAL OPERATIONS (0.5%) Monsanto Co. ....................... 10,000 370,000 -------------- APPLIANCES (1.7%) AB Electrolux ADR (Class B)......... 10,000 277,100 Whirlpool Corp. .................... 17,500 1,093,750 -------------- 1,370,850 -------------- APPLICATIONS SOFTWARE (1.3%) *Compuware Corp. ................... 40,000 559,600 *Edwards, J.D. & Co. ............... 30,000 424,200 -------------- 983,800 -------------- AUTO - CARS & LIGHT TRUCKS (0.5%) *General Motors Corp. (Class H)..... 20,000 405,000 -------------- AUTO - TRUCK PARTS & EQUIPMENT (0.4%) Autoliv, Inc. ...................... 20,000 345,600 -------------- BATTERIES - BATTERY SYSTEMS (0.1%) *Energizer Holdings, Inc. .......... 3,000 68,850 --------------
SHARES VALUE ----------------------------------------------------------------------- BREWERY (0.5%) Fomento Economico Mexicano SA de CV ADR............................... 10,000 $ 428,100 -------------- BUILDING & CONSTRUCTION PRODUCTS (1.0%) Masco Corp. ........................ 30,000 748,800 -------------- BUILDING PRODUCTS - CEMENT/AGGREGATE (0.9%) Martin Marietta Materials, Inc. .... 15,000 742,350 -------------- BUILDING - HEAVY CONSTRUCTION (0.4%) Chicago Bridge & Iron Co. NV........ 10,000 338,500 -------------- BUILDING - MOBILE & MANUFACTURED HOMES (2.8%) *Champion Enterprises, Inc. ........ 75,000 853,500 Clayton Homes, Inc. ................ 40,000 628,800 Fleetwood Enterprises, Inc. ........ 50,000 704,000 -------------- 2,186,300 -------------- CHEMICALS - SPECIALTY (1.4%) Eastman Chemical Co. ............... 12,500 595,375 Fuller, H.B. Co. ................... 10,000 499,000 -------------- 1,094,375 -------------- CIRCUIT BOARDS (0.5%) *DDi Corp. ......................... 20,000 400,000 -------------- COMMERCIAL BANKS (1.0%) Glacier Bancorp, Inc. .............. 30,000 570,000 West Coast Bancorp.................. 19,900 252,133 -------------- 822,133 -------------- COMPUTERS (1.6%) *Apple Computer, Inc. .............. 30,000 697,500 Hewlett-Packard Co. ................ 20,000 572,000 -------------- 1,269,500 -------------- COMPUTERS - INTEGRATED SYSTEMS (0.2%) *Cray, Inc. ........................ 75,000 178,500 -------------- COMPUTERS - MEMORY DEVICES (0.7%) *SanDisk Corp. ..................... 20,000 557,800 -------------- CONSUMER PRODUCTS (1.2%) Tupperware Corp. ................... 40,000 937,200 -------------- CONTAINERS - PAPER/PLASTIC (0.4%) Intertape Polymer Group, Inc. ...... 25,700 349,263 -------------- DIALYSIS CENTERS (0.8%) *DaVita, Inc. ...................... 30,000 609,900 -------------- DIVERSIFIED FINANCIAL SERVICES (0.7%) Citigroup, Inc. .................... 10,000 528,400 --------------
See Accompanying Notes to Financial Statements 58 60 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
SHARES VALUE ----------------------------------------------------------------------- DIVERSIFIED MANUFACTURING OPERATIONS (2.7%) Cooper Industries, Inc. ............ 15,000 $ 593,850 Honeywell International, Inc. ...... 20,000 699,800 Minnesota Mining & Manufacturing Co. .............................. 7,500 855,750 -------------- 2,149,400 -------------- DIVERSIFIED MINERALS (0.4%) Cia Vale Do Rio Doce ADR............ 15,000 348,000 -------------- DIVERSIFIED OPERATIONS (0.6%) Walter Industries, Inc. ............ 40,000 476,000 -------------- DIVERSIFIED OPERATIONS - COMMERCIAL SERVICES (1.0%) *Cendant Corp. ..................... 40,000 780,000 -------------- ELECTRIC - INTEGRATED (1.9%) Alliant Energy Corp. ............... 10,000 291,500 Cia Paranaense de Energia-Copel ADR............................... 50,000 375,500 IDACORP, Inc. ...................... 10,000 348,800 NiSource, Inc. ..................... 10,000 273,300 Scana Corp. ........................ 7,500 213,000 -------------- 1,502,100 -------------- ELECTRONIC COMPONENTS - MISC. (1.3%) *APW Ltd. .......................... 40,000 406,000 Methode Electronics, Inc. (Class A)................................ 75,000 645,000 -------------- 1,051,000 -------------- ELECTRONIC COMPONENTS - SEMICONDUCTORS (2.3%) *Agere Systems, Inc. (Class A)...... 50,000 375,000 *Micron Technology, Inc. ........... 10,000 411,000 *National Semiconductor Corp. ...... 20,000 582,400 Texas Instruments, Inc. ............ 15,000 472,500 -------------- 1,840,900 -------------- ELECTRONIC PARTS DISTRIBUTOR (0.9%) Avnet, Inc. ........................ 30,000 672,600 -------------- ENGINEERING R & D SERVICES (1.1%) *McDermott International, Inc. ..... 50,000 582,500 *ABB Ltd. ADR....................... 20,000 303,000 -------------- 885,500 -------------- ENTERPRISE SOFTWARE - SERVICES (0.4%) *BMC Software, Inc. ................ 15,000 338,100 -------------- FILTRATIONS - SEPARATE PRODUCTS (0.8%) *Osmonics, Inc. .................... 47,500 655,500 -------------- FINANCE - INVESTMENT FUND (0.9%) Japan OTC Equity Fund, Inc. ........ 100,000 689,000 --------------
SHARES VALUE ----------------------------------------------------------------------- FOOD - MISC. DIVERSIFIED (1.3%) Dean Foods Co. ..................... 10,000 $ 402,000 Unilever NV......................... 10,000 595,700 -------------- 997,700 -------------- FUNERAL SERVICE & RELATED ITEMS (0.8%) *Service Corporation Int'l. ........ 100,000 636,000 -------------- HEALTH CARE COST CONTAINMENT/MANAGEMENT (0.7%) McKesson HBOC, Inc. ................ 15,000 556,800 -------------- INDUSTRIAL AUTOMATED ROBOT (0.3%) *UNOVA, Inc. ....................... 30,000 206,400 -------------- INSTRUMENTS - CONTROLS (0.5%) Parker-Hannifin Corp. .............. 10,000 424,400 -------------- INSTRUMENTS - SCIENTIFIC (1.0%) *FEI Co. ........................... 20,000 820,000 -------------- INSURANCE BROKERS (0.4%) AON Corp. .......................... 10,000 350,000 -------------- LIFE & HEALTH INSURANCE (2.6%) John Hancock Financial Services, Inc. ............................. 15,000 603,900 Nationwide Financial Services, Inc. (Class A)......................... 15,000 654,750 *Phoenix Companies, Inc., The....... 40,000 744,000 -------------- 2,002,650 -------------- MACHINERY - CONSTRUCTION & MINING (0.4%) +*Harnischfeger Industries, Inc. ... 20,000 328,000 -------------- MACHINERY - GENERAL INDUSTRIAL (0.5%) *Denison Int'l. plc ADR............. 25,000 412,750 -------------- MACHINERY - MATERIAL HANDLING (0.5%) Nacco Industries, Inc. (Class A).... 5,000 389,950 -------------- MEDICAL INSTRUMENTS (0.9%) *Boston Scientific Corp. ........... 40,000 680,000 -------------- MEDICAL PRODUCTS (1.7%) Becton Dickinson & Co. ............. 22,500 805,275 Cooper Companies, Inc., The......... 10,000 514,000 -------------- 1,319,275 -------------- MEDICAL - DRUGS (1.0%) Schering-Plough Corp. .............. 20,000 724,800 -------------- METAL - ALUMINUM (0.8%) Alcan, Inc. ........................ 15,000 630,300 -------------- MONEY CENTER BANKS (0.4%) First Union Corp. .................. 10,000 349,400 -------------- MOTION PICTURES & SERVICES (0.4%) *Metro-Goldwyn-Mayer, Inc. ......... 15,000 339,750 --------------
See Accompanying Notes to Financial Statements 59 61 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
COLUMBIA STRATEGIC VALUE FUND (CONT.) JUNE 30, 2001 (UNAUDITED) SHARES VALUE ----------------------------------------------------------------------- MULTI-LINE INSURANCE (3.1%) Hartford Financial Services Group, Inc. ............................. 15,000 $ 1,026,000 SAFECO Corp. ....................... 30,000 885,000 St. Paul Companies, Inc., The....... 10,000 506,900 -------------- 2,417,900 -------------- MULTIMEDIA (0.7%) Disney, Walt Co., The............... 20,000 577,800 -------------- NON-FERROUS METALS (0.2%) *Titanium Metals Corp. ............. 15,000 150,000 -------------- NON-HAZARDOUS WASTE DISPOSAL (1.6%) Waste Management, Inc. ............. 40,000 1,232,800 -------------- OIL COMPANIES - EXPLORATION & PRODUCTION (0.3%) *Brown, Tom, Inc. .................. 10,000 240,000 -------------- OIL COMPANIES - INTEGRATED (0.4%) Unocal Corp. ....................... 10,000 341,500 -------------- OIL - FIELD SERVICES (1.2%) *Petroleum Geo-Services ADR......... 50,000 505,500 *Willbros Group, Inc. .............. 30,000 390,000 -------------- 895,500 -------------- PAPER & RELATED PRODUCTS (2.0%) *Buckeye Technologies, Inc. ........ 30,000 432,000 Kimberly-Clark de Mexico SA de CV ADR............................... 30,000 438,000 Sappi Ltd. ADR...................... 50,000 447,500 Westvaco Corp. ..................... 10,000 242,900 -------------- 1,560,400 -------------- POWER CONVERSION - SUPPLY EQUIPMENT (0.7%) Hubbell, Inc. (Class A)............. 20,000 561,000 -------------- PROPERTY & CASUALTY INSURANCE (1.5%) Progressive Corp., The.............. 2,000 270,380 Wesco Financial Corp. .............. 2,500 869,750 -------------- 1,140,130 -------------- PUBLISHING - NEWSPAPERS (1.2%) McClatchy Co. ...................... 12,500 488,750 New York Times Co. (Class A)........ 10,000 420,000 -------------- 908,750 -------------- RACETRACKS (0.6%) *Speedway Motorsports, Inc. ........ 20,000 504,200 -------------- REITS - APARTMENTS (0.7%) Post Properties, Inc. .............. 15,000 567,750 --------------
SHARES VALUE ----------------------------------------------------------------------- REITS - OFFICE PROPERTY (0.8%) Equity Office Properties Trust...... 20,000 $ 632,600 -------------- RETAIL - APPAREL & SHOES (1.3%) Brown Shoe Company, Inc. ........... 40,000 722,000 *Payless ShoeSource, Inc. .......... 4,000 258,800 -------------- 980,800 -------------- RETAIL - AUTO PARTS (0.2%) CSK Auto Corp. ..................... 20,000 166,000 -------------- RETAIL - BOOKSTORE (0.9%) *Borders Group, Inc. ............... 30,000 672,000 -------------- RETAIL - CONSUMER ELECTRONICS (1.0%) Circuit City Stores - Circuit City Group............................. 45,000 810,000 -------------- RETAIL - DISCOUNT (0.7%) *Dollar Tree Stores, Inc. .......... 20,000 556,800 -------------- RETAIL - HOME FURNISHINGS (0.3%) *Restoration Hardware, Inc. ........ 50,000 271,500 -------------- RETAIL - JEWELRY (0.4%) *Zale Corp. ........................ 10,000 337,000 -------------- RETAIL - MAJOR DEPARTMENT STORE (0.7%) Penney, J.C. Company, Inc. ......... 20,000 527,200 -------------- RETAIL - REGIONAL DEPARTMENT STORE (1.1%) *Federated Department Stores, Inc. ............................. 20,000 850,000 -------------- SEMICONDUCTOR EQUIPMENT (0.7%) *Mattson Technology, Inc. .......... 30,000 524,400 -------------- STEEL - SPECIALTY (0.8%) *Oregon Steel Mills, Inc. .......... 75,000 637,500 -------------- SUPER REGIONAL BANKS (2.0%) KeyCorp............................. 20,000 521,000 National City Corp. ................ 15,000 461,700 U.S. Bancorp........................ 25,000 569,750 -------------- 1,552,450 -------------- TELECOMMUNICATION EQUIPMENT (0.5%) Ericsson, LM Telephone Co. ADR (Class B)......................... 70,000 379,400 -------------- TELECOMMUNICATION EQUIPMENT/FIBER OPTICS (0.2%) *Williams Communications Group, Inc. ............................. 50,000 147,500 -------------- TELEPHONE - INTEGRATED (2.9%) AT&T Corp. ......................... 20,000 440,000 SBC Communications, Inc. ........... 10,000 400,600 Sprint Corp. (Fon Group)............ 40,000 854,400 Verizon Communications, Inc. ....... 10,000 535,000 -------------- 2,230,000 --------------
See Accompanying Notes to Financial Statements 60 62 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
SHARES OR PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- TELEVISION (0.7%) Liberty Corp., The.................. 4,000 $ 160,000 *Sinclair Broadcast Group, Inc. (Class A)......................... 40,000 412,000 -------------- 572,000 -------------- TOYS (1.3%) Hasbro, Inc. ....................... 30,000 433,500 Mattel, Inc. ....................... 30,000 567,600 -------------- 1,001,100 -------------- TRANSPORT - MARINE (1.2%) Alexander & Baldwin, Inc. .......... 25,000 643,750 *Transportacion Maritima Mexicana SA de CV ADR (Class A)............... 30,000 333,000 -------------- 976,750 -------------- TRANSPORT - RAIL (0.5%) Norfolk Southern Corp. ............. 20,000 414,000 -------------- TRANSPORT - TRUCK (0.5%) *Yellow Corp. ...................... 20,000 379,600 -------------- WATER (0.7%) California Water Service Group...... 20,000 513,000 -------------- WIRELESS EQUIPMENT (0.5%) *Loral Space & Communications Ltd. ............................. 20,000 56,000 Motorola, Inc. ..................... 20,000 331,200 -------------- 387,200 -------------- Total Common Stocks (Cost $57,123,605).......................... 64,306,276 -------------- REPURCHASE AGREEMENTS (17.1%) ++J.P. Morgan Securities, Inc. 3.94% Dated 06/29/2001, due 07/02/2001 in the amount of $6,472,318. Collateralized by U.S. Treasury Notes 7.25% due 08/15/2004 U.S. Treasury Bonds 5.375% to 15.75% due 08/15/2001 to 02/15/2031 U.S. Treasury Strips due 08/15/2001 to 08/15/2028...... $6,471,619 6,471,619 Merrill Lynch 3.95% dated 06/29/2001, due 07/02/2001 in the amount of $7,000,758. Collateralized by U.S. Treasury Strips 8.125% to 8.75% due 08/15/2012 to 05/15/2025...... 7,000,000 7,000,000 --------------
PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- Total Repurchase Agreements (Cost $13,471,619).................... $ 13,471,619 -------------- TOTAL INVESTMENTS (98.8%) (Cost $70,595,224).................... 77,777,895 OTHER ASSETS LESS LIABILITIES (1.2%)... 919,664 -------------- NET ASSETS (100.0%).................... $ 78,697,559 ==============
* Non-income producing + Security purchased on when-issued basis. ++ A portion of this security was segregated at the custodian to cover a when-issued security.
COLUMBIA BALANCED FUND JUNE 30, 2001 (UNAUDITED) SHARES VALUE ----------------------------------------------------------------------- COMMON STOCKS (57.2%) APPLICATIONS SOFTWARE (2.1%) *Microsoft Corp..................... 309,000 $ 22,433,400 -------------- AUTO - CARS & LIGHT TRUCKS (0.8%) DaimlerChrysler AG.................. 178,050 8,208,105 -------------- BROADCAST SERVICES & PROGRAMMING (1.1%) *AT&T Corp. - Liberty Media Group (Class A)......................... 397,028 6,944,020 *Clear Channel Communications, Inc. ............................. 74,800 4,689,960 -------------- 11,633,980 -------------- BUILDING & CONSTRUCTION PRODUCTS (0.6%) Masco Corp. ........................ 197,400 4,927,104 Vulcan Materials Co. ............... 34,250 1,840,937 -------------- 6,768,041 -------------- CABLE TELEVISION (1.0%) *Adelphia Communications Corp. (Class A)......................... 97,000 3,977,000 *Charter Communications, Inc. (Class A)................................ 267,525 6,246,709 -------------- 10,223,709 -------------- COMPUTERS (1.9%) Compaq Computer Corp. .............. 377,700 5,850,573 International Business Machines Corp. ............................ 104,150 11,768,950 *Sun Microsystems, Inc. ............ 186,800 2,936,496 -------------- 20,556,019 -------------- COMPUTERS - MEMORY DEVICES (0.7%) *EMC Corp. ......................... 152,800 4,438,840 *VERITAS Software Corp. ............ 40,500 2,694,465 -------------- 7,133,305 --------------
See Accompanying Notes to Financial Statements 61 63 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
COLUMBIA BALANCED FUND (CONT.) JUNE 30, 2001 (UNAUDITED) SHARES VALUE ----------------------------------------------------------------------- COSMETICS & TOILETRIES (1.1%) Kimberly-Clark Corp. ............... 208,700 $ 11,666,330 -------------- DIVERSIFIED FINANCIAL SERVICES (2.5%) Citigroup, Inc. .................... 510,393 26,969,166 -------------- DIVERSIFIED MANUFACTURING OPERATIONS (5.4%) Danaher Corp. ...................... 31,700 1,775,200 General Electric Co. ............... 488,500 23,814,375 Honeywell International, Inc. ...... 49,550 1,733,755 Minnesota Mining & Manufacturing Co. .............................. 97,400 11,113,340 Textron, Inc. ...................... 79,100 4,353,664 Tyco International, Ltd. ........... 263,002 14,333,609 -------------- 57,123,943 -------------- ELECTRIC - INTEGRATED (0.4%) Exelon Corp. ....................... 62,900 4,033,148 -------------- ELECTRONIC COMPONENTS - MISC. (0.8%) *Celestica, Inc. ................... 156,950 8,082,925 -------------- ELECTRONIC COMPONENTS - SEMICONDUCTORS (2.7%) *Agere Systems, Inc. (Class A)...... 351,000 2,632,500 Intel Corp. ........................ 410,250 11,999,813 *Micron Technology, Inc. ........... 158,500 6,514,350 *National Semiconductor Corp. ...... 132,400 3,855,488 Texas Instruments, Inc. ............ 114,400 3,603,600 -------------- 28,605,751 -------------- ENTERPRISE SOFTWARE - SERVICES (0.3%) *PeopleSoft, Inc. .................. 60,100 2,958,723 -------------- FIDUCIARY BANKS (0.5%) Bank of New York Company, Inc., The............................... 113,650 5,455,200 -------------- FINANCE - CREDIT CARD (1.0%) American Express Co. ............... 269,600 10,460,480 -------------- FINANCE - INVESTMENT BANKERS/BROKERS (0.6%) Merrill Lynch & Co., Inc. .......... 74,850 4,434,863 Morgan Stanley Dean Witter & Co. ... 35,500 2,280,165 -------------- 6,715,028 -------------- FINANCE - MORTGAGE LOAN BANKER (1.0%) Freddie Mac......................... 154,450 10,811,500 -------------- FOOD - MISC. DIVERSIFIED (0.6%) *Kraft Foods, Inc. (Class A) ....... 212,500 6,587,500 -------------- HOTELS & MOTELS (0.2%) Starwood Hotels & Resorts Worldwide, Inc. ............................. 70,777 2,638,567 -------------- INDEPENDENT POWER PRODUCER (0.3%) *Reliant Resources, Inc. ........... 136,600 3,374,020 --------------
SHARES VALUE ----------------------------------------------------------------------- INSURANCE BROKERS (0.2%) Marsh & McLennan Companies, Inc. ... 23,300 $ 2,353,300 -------------- LIFE & HEALTH INSURANCE (0.1%) John Hancock Financial Services, Inc. ............................. 35,250 1,419,165 -------------- MACHINERY - CONSTRUCTION & MINING (0.8%) Caterpillar, Inc. .................. 178,300 8,923,915 -------------- MACHINERY - GENERAL INDUSTRIAL (0.3%) Ingersoll-Rand Co. ................. 79,850 3,289,820 -------------- MEDICAL INSTRUMENTS (0.4%) Beckman Coulter, Inc. .............. 115,200 4,700,160 -------------- MEDICAL PRODUCTS (1.4%) Baxter International, Inc. ......... 305,000 14,945,000 -------------- MEDICAL - DRUGS (6.1%) Abbott Laboratories................. 184,250 8,845,842 Pfizer, Inc. ....................... 771,200 30,886,560 Pharmacia Corp. .................... 326,250 14,991,188 Schering-Plough Corp. .............. 289,000 10,473,360 -------------- 65,196,950 -------------- METAL - ALUMINUM (0.6%) Alcan, Inc. ........................ 147,350 6,191,647 -------------- MONEY CENTER BANKS (1.4%) Bank of America Corp. .............. 152,010 9,125,160 J.P. Morgan Chase & Co. ............ 126,190 5,628,074 -------------- 14,753,234 -------------- MULTI-LINE INSURANCE (1.3%) American International Group, Inc. ............................. 166,912 14,354,432 -------------- MULTIMEDIA (2.2%) *AOL Time Warner, Inc. ............. 342,112 18,131,936 *Viacom, Inc. (Class B)............. 102,600 5,309,550 -------------- 23,441,486 -------------- NETWORKING PRODUCTS (0.9%) *Cisco Systems, Inc. ............... 497,000 9,045,400 -------------- NON-HAZARDOUS WASTE DISPOSAL (1.4%) Waste Management, Inc. ............. 474,730 14,631,179 -------------- OIL COMPANIES - INTEGRATED (1.1%) Chevron Corp. ...................... 69,450 6,285,225 Exxon Mobil Corp. .................. 64,687 5,650,409 -------------- 11,935,634 -------------- OIL & GAS DRILLING (0.4%) *Global Marine, Inc. ............... 59,200 1,102,896 *Noble Drilling Corp. .............. 34,500 1,129,875 Transocean Sedco Forex, Inc. ....... 41,700 1,720,125 -------------- 3,952,896 --------------
See Accompanying Notes to Financial Statements 62 64 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
SHARES VALUE ----------------------------------------------------------------------- OIL-FIELD SERVICES (0.1%) *Weatherford International, Inc. ... 29,100 $ 1,396,800 -------------- PIPELINES (1.0%) Dynegy, Inc. (Class A).............. 96,750 4,498,875 El Paso Corp. ...................... 115,497 6,068,212 -------------- 10,567,087 -------------- REINSURANCE (0.5%) *Berkshire Hathaway, Inc. (Class A)................................ 70 4,858,000 -------------- RETAIL-BUILDING PRODUCTS (0.5%) Home Depot, Inc. ................... 124,050 5,774,528 -------------- RETAIL - DISCOUNT (1.0%) Wal-Mart Stores, Inc. .............. 216,450 10,562,760 -------------- RETAIL - REGIONAL DEPARTMENT STORE (0.7%) *Federated Department Stores, Inc. ............................. 154,870 6,581,975 *Kohl's Corp. ...................... 15,225 955,064 -------------- 7,537,039 -------------- RETAIL - TOY STORE (0.6%) *Toys "R" Us, Inc. ................. 236,950 5,864,512 -------------- SAVINGS & LOAN - THRIFTS (0.6%) Washington Mutual, Inc. ............ 175,650 6,595,658 -------------- SEMICONDUCTOR EQUIPMENT (1.2%) *Applied Materials, Inc. ........... 98,800 4,851,080 *KLA-Tencor Corp. .................. 65,150 3,809,320 *Novellus Systems, Inc. ............ 63,150 3,586,288 -------------- 12,246,688 -------------- SUPER REGIONAL BANKS (0.7%) Bank One Corp. ..................... 202,850 7,262,030 -------------- TELECOMMUNICATIONS SERVICES (0.6%) *Amdocs Ltd. ....................... 83,800 4,512,630 *Global Crossing Ltd. .............. 186,850 1,614,384 -------------- 6,127,014 -------------- TELECOMMUNICATION EQUIPMENT (0.3%) *Comverse Technology, Inc. ......... 47,350 2,728,307 -------------- TELEPHONE - INTEGRATED (3.2%) AT&T Corp. ......................... 399,450 8,787,900 BellSouth Corp. .................... 114,750 4,620,983 Qwest Communications International, Inc. ............................. 151,866 4,839,969 SBC Communications, Inc. ........... 146,500 5,868,790 Sprint Corp. (Fon Group)............ 180,100 3,846,936 Verizon Communications, Inc. ....... 120,700 6,457,450 -------------- 34,422,028 -------------- TOBACCO (0.9%) Philip Morris Companies, Inc. ...... 193,400 9,815,050 --------------
SHARES OR PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- TRANSPORT - RAIL (1.1%) Burlington Northern Santa Fe Corp. ............................ 155,050 $ 4,677,858 Union Pacific Corp. ................ 122,050 6,701,766 -------------- 11,379,624 -------------- Total Common Stocks (Cost $530,893,945)................. 608,710,183 -------------- BONDS (38.3%) U.S. GOVERNMENT SECURITIES (12.9%) U.S. TREASURY NOTES & BONDS (3.8%) U.S. Treasury Bonds 8.875% 08/15/2017................. $19,420,000 25,503,923 U.S. Treasury Inflation Index Bonds 3.375% 01/15/2007................. 15,294,680 15,490,643 -------------- 40,994,566 -------------- U.S. AGENCY BONDS (2.0%) Federal Home Loan Bank 5.125% 01/13/2003................. 9,435,000 9,533,785 Federal National Mortgage Association 7.125% 01/15/2030................. 10,925,000 11,645,285 -------------- 21,179,070 -------------- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) (2.9%) 7.00% 01/15/2028 - 02/15/2031....... 17,242,175 17,409,208 7.50% 06/15/2028 - 01/15/2031....... 9,438,143 9,685,894 8.00% 10/15/2026 - 12/15/2030....... 3,607,483 3,740,509 -------------- 30,835,611 -------------- FEDERAL HOME LOAN MORTGAGE CORP. (FHLMC) (0.8%) 6.00% 05/01/2016.................... 794,390 783,964 6.50% 05/01/2031 - 07/01/2031....... 6,000,000 5,915,625 7.00% 04/01/2031 - 05/01/2031....... 2,330,206 2,344,042 -------------- 9,043,631 -------------- FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) (1.6%) 7.50% 09/01/2030 - 05/01/2031....... 17,129,033 17,487,672 -------------- FEDERAL HOUSING ADMINISTRATION (FHA) (0.3%) FHA Insured Project Pool #53-43077 9.125% 07/25/2033................. 1,572,642 1,612,663 FHA Insured Project Pool #55 7.43% 04/01/2022.................. 1,455,771 1,448,255 -------------- 3,060,918 -------------- AGENCY COLLATERALIZED MORTGAGE OBLIGATION (1.5%) GNMA Gtd. Remic Pass Thru Secs Remic Tr. 2000-6 Cl. VC 7.50% 04/20/2017.................. 5,652,000 5,835,156 FNMA Gtd. Remic Pass Thru Ctf. Remic Tr. 1994-43 Cl. E 6.50% 02/25/2024.................. 1,432,843 1,449,232
See Accompanying Notes to Financial Statements 63 65 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
COLUMBIA BALANCED FUND (CONT.) JUNE 30, 2001 (UNAUDITED) PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- Remic Tr. 1997-68 Cl. PJ 7.00% 10/18/2027.................. $ 3,000,000 $ 2,999,847 FHLMC Multiclass Mtg. Partn. Ctfs. Gtd. Series 2235 Cl. VN 7.00% 06/15/2014.................. 3,980,000 4,086,883 Gtd. Series 2065 Cl. PB 6.25% 01/15/2024.................. 1,083,000 1,088,146 -------------- 15,459,264 -------------- Total U.S. Government Securities (Cost $135,995,452)................. 138,060,732 -------------- CORPORATE BONDS (16.7%) INDUSTRIAL (10.1%) Adelphia Communications Corp. Series B 7.50% 01/15/2004.................. 2,000,000 1,900,000 Alcan, Inc. 7.25% 03/15/2031.................. 1,860,000 1,833,439 Alcoa, Inc., Series B 6.50% 06/15/2018.................. 1,100,000 1,038,785 Allied Waste North America, Inc. Series B 10.00% 08/01/2009................. 1,000,000 1,027,500 American Home Products Corp. 6.25% 03/15/2006.................. 3,775,000 3,791,988 Anheuser-Busch Cos., Inc. 7.55% 10/01/2030.................. 850,000 924,435 AOL Time Warner, Inc. 7.625% 04/15/2031................. 1,700,000 1,699,575 Ball Corp. 7.75% 08/01/2006.................. 850,000 858,500 BP Amoco plc 5.90% 04/15/2009.................. 2,075,000 2,040,700 Buckeye Technologies, Inc. 8.50% 12/15/2005.................. 600,000 595,500 Burlington Northern Sante Fe Corp. 7.125% 12/15/2010................. 2,150,000 2,161,008 6.75% 07/15/2011.................. 1,000,000 981,760 Canadian National Railway Co. 6.45% 07/15/2006.................. 675,000 670,268 Canadian National Railway Co. Series 1997-A2 7.195% 01/02/2016................. 1,188,720 1,100,576 Charter Communications Holdings L.L.C./Charter Communications Holdings Capital Corp. 8.25% 04/01/2007.................. 2,000,000 1,870,000
PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- Coca-Cola Enterprises, Inc. 6.75% 01/15/2038.................. $ 1,045,000 $ 980,116 Computer Sciences Corp. 7.50% 08/08/2005.................. 1,850,000 1,885,853 Cox Enterprises, Inc. (144A) 8.00% 02/15/2007.................. 700,000 731,559 CSC Holdings, Inc. 7.875% 12/15/2007................. 3,500,000 3,452,785 Diageo Capital plc 6.625% 06/24/2004................. 4,000,000 4,119,760 Dow Chemical Co. 7.375% 11/01/2029................. 1,030,000 1,056,821 Federal Express Corp. Pass Thru Trust Series 1997-1C 7.65% 01/15/2014.................. 1,942,210 1,956,466 Gulf Canada Resources Ltd. 9.625% 07/01/2005................. 2,500,000 2,571,875 Harrah's Operating, Inc. 7.875% 12/15/2005................. 500,000 507,500 HCA - The Healthcare Co. 6.91% 06/15/2005.................. 1,450,000 1,413,750 Heritage Media Corp. 8.75% 02/15/2006.................. 1,000,000 1,000,000 Hewlett-Packard Co. 7.15% 06/15/2005.................. 4,000,000 4,137,684 Honeywell International, Inc. 7.50% 03/01/2010.................. 2,120,000 2,252,163 Ingersoll-Rand Co. 6.25% 05/15/2006.................. 2,900,000 2,906,873 International Paper Co. 8.00% 07/08/2003.................. 1,700,000 1,779,050 Kroger Co. 7.80% 08/15/2007.................. 4,000,000 4,219,920 Lear Corp., Series B 7.96% 05/15/2005.................. 2,000,000 2,035,774 Lowe's Cos., Inc. 6.50% 03/15/2029.................. 2,825,000 2,512,066 Marriott International Series E (144A) 7.00% 01/15/2008.................. 2,000,000 1,984,840 MCI Worldcom, Inc. 7.55% 04/01/2004.................. 1,400,000 1,439,536 8.875% 01/15/2006................. 1,000,000 1,035,110 Park Place Entertainment Corp. 9.375% 02/15/2007................. 1,825,000 1,918,531 Phillips Petroleum Co. 8.50% 05/25/2005.................. 3,090,000 3,349,097 Pride International, Inc. 9.375% 05/01/2007................. 500,000 526,250
See Accompanying Notes to Financial Statements 64 66 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- SBC Communications, Inc. 5.75% 05/02/2006.................. $ 3,550,000 $ 3,499,093 Shaw Communications, Inc. 8.25% 04/11/2010.................. 1,400,000 1,470,994 7.25% 04/06/2011.................. 1,400,000 1,385,468 Station Casinos, Inc. 9.75% 04/15/2007.................. 2,000,000 2,060,000 TCI Communications, Inc. 8.00% 08/01/2005.................. 1,900,000 2,021,600 Teekay Shipping Corp. (144A) 8.875% 07/15/2011................. 1,000,000 1,010,000 Tenet Healthcare Corp. 8.00% 01/15/2005.................. 1,500,000 1,539,375 Time Warner, Inc. 7.975% 08/15/2004................. 4,303,000 4,571,172 Toll Corp. 7.75% 09/15/2007.................. 1,000,000 961,250 Tyco International Group S.A. 6.25% 06/15/2003.................. 4,500,000 4,561,830 United Rentals, Inc. (144A) 10.75% 04/15/2008................. 2,000,000 2,065,000 United Technologies Corp. 6.50% 06/01/2009.................. 1,685,000 1,700,822 7.125% 11/15/2010................. 1,660,000 1,737,887 US West Communications, Inc. 5.625% 11/15/2008................. 3,000,000 2,733,510 Verizon Global Funding Corp. (144A) 7.25% 12/01/2010.................. 2,700,000 2,750,814 Vodafone Group plc 7.75% 02/15/2010.................. 1,475,000 1,547,511 -------------- 107,883,739 -------------- FINANCIAL (2.5%) Bank of America Corp. 7.80% 02/15/2010.................. 2,950,000 3,133,844 CIT Group, Inc. 7.625% 08/16/2005................. 4,500,000 4,738,410 Citigroup, Inc. 7.25% 10/01/2010.................. 2,000,000 2,076,100 First Union National Bank 7.80% 08/18/2010.................. 2,900,000 3,084,440 Ford Motor Credit Co. 6.875% 02/01/2006................. 3,200,000 3,262,016 7.375% 10/28/2009................. 1,885,000 1,905,207 Merrill Lynch & Co, Inc. Medium Term Notes, Series B 6.15% 01/26/2006.................. 3,530,000 3,555,875
PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- Travelers Property Casualty Corp. 6.75% 11/15/2006.................. $ 2,350,000 $ 2,424,683 Wells Fargo & Co. 7.25% 08/24/2005.................. 2,000,000 2,110,640 -------------- 26,291,215 -------------- UTILITIES (2.2%) Calpine Corp. 7.625% 04/15/2006................. 1,000,000 967,330 Coastal Corp. 6.50% 05/15/2006.................. 2,430,000 2,407,936 7.625% 09/01/2008................. 2,820,000 2,865,994 FPL Group Capital, Inc. 6.875% 06/01/2004................. 375,000 385,286 Kinder Morgan Energy Partners L.P. 8.00% 03/15/2005.................. 3,900,000 4,126,496 Pinnacle West Capital Corp. 6.40% 04/01/2006.................. 4,100,000 4,042,846 Progress Energy, Inc. 7.75% 03/01/2031.................. 2,000,000 2,061,720 TXU Eastern Funding Co. 6.45% 05/15/2005.................. 4,200,000 4,141,049 Texas Eastern Transmission 7.30% 12/01/2010.................. 2,000,000 2,053,720 -------------- 23,052,377 -------------- INTERNATIONAL (1.9%) British Columbia Province 5.375% 10/29/2008................. 2,150,000 2,068,087 Government of Canada 5.25% 11/05/2008.................. 4,300,000 4,096,352 Kingdom of Spain 7.00% 07/19/2005.................. 4,050,000 4,279,963 Korea Development Bank 6.625% 11/21/2003................. 775,000 788,144 7.125% 04/22/2004................. 2,375,000 2,446,143 Quebec Province 6.50% 01/17/2006.................. 3,100,000 3,191,450 7.125% 02/09/2024................. 2,000,000 2,041,940 United Mexican States 9.875% 02/01/2010................. 1,250,000 1,367,500 -------------- 20,279,579 -------------- Total Corporate Notes & Bonds (Cost $173,863,397)................. 177,506,910 --------------
See Accompanying Notes to Financial Statements 65 67 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
COLUMBIA BALANCED FUND (CONT.) JUNE 30, 2001 (UNAUDITED) PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- OTHER SECURITIZED LOANS (8.5%) ASSET BACKED SECURITIES (4.3%) Cityscape Home Equity Loan Trust Series 1997-B Cl. A7 7.41% 05/25/2028.................. $ 3,063,435 $ 3,191,506 Cityscape Home Loan Owner Trust Series 1997-4 Cl. A4 7.44% 10/25/2018.................. 5,000,000 5,099,418 Contimortgage Home Equity Loan Trust Series 1999-1 Cl. A6 6.85% 10/25/2029.................. 2,235,000 2,188,928 First Alliance Mortgage Trust Series 1996-1 Cl. A1 7.34% 06/20/2027.................. 534,939 542,071 Green Tree Financial Corp. Series 1998-4 Cl. A7 6.87% 02/01/2030.................. 605,000 588,436 IMC Home Equity Loan Trust Series 1997-3 Cl. A6 7.52% 08/20/2028.................. 2,310,000 2,387,320 Series 1997-5 Cl. A9 7.31% 11/20/2028.................. 2,180,000 2,194,597 Mellon Residential Funding Corporation Series 2001-HEIL Cl. A4 6.615% 02/25/2021................. 5,730,000 5,751,488 Merit Securities Corp. Series 13 Cl. A4 7.88% 12/28/2033.................. 3,760,000 3,898,662 New Century Home Equity Loan Trust Series 1997-NC5 Cl. A5 7.13% 10/25/2028.................. 11,760,000 11,891,571 Salomon Brothers Mortgage Securities VII, Inc. Series 1998-AQ1 Cl. A5 7.15% 06/25/2028.................. 3,150,000 3,215,782 The Money Store Residential Trust Series 1997-II Cl. A4 7.385% 03/15/2029................. 3,748,673 3,871,836 UCFC Funding Corp. Series 1997-1 Cl. A3 7.055% 09/15/2013................. 1,141,397 1,160,082 -------------- 45,981,697 --------------
PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- AMOUNT VALUE ----------------------------------------------------------------------- COLLATERALIZED MORTGAGE OBLIGATIONS (3.2%) **Bear Stearns Mortgage Securities, Inc. Series 1996-2 Cl. A1 5.44% 01/25/2025.................. $ 3,071,636 $ 2,851,226 CMC Securities Corp. IV Series 1997-2 Cl. 1A12 7.25% 11/25/2027.................. 7,235,000 7,399,560 First Nationwide Trust Series 2000-1 Cl. 2A3 8.00% 10/25/2030.................. 4,899,376 5,143,866 Headlands Mortgage Securities, Inc. Series 1997-3 Cl. 1A6 7.00% 07/25/2027.................. 5,309,768 5,330,435 PNC Mortgage Securities Corp. Series 1997-4 Cl. 2PP2 7.50% 07/25/2027.................. 2,750,000 2,816,799 Series 1999-5 Cl. 2A6 6.75% 07/25/2029.................. 1,868,640 1,902,734 Residential Asset Securitization Trust Series 1998-A8 Cl. A2 6.75% 08/25/2028.................. 970,031 979,251 **Saco I, Inc. (144A) Series 1995-1 Cl. A 5.65% 9/25/2024................... 2,051,214 1,953,999 Structured Asset Securities Corp. Series 1999-ALS2 Cl. A2 6.75% 07/25/2029.................. 5,444,569 5,538,219 -------------- 33,916,089 -------------- COMMERCIAL MORTGAGE BACKED SECURITIES (1.0%) Commercial Capital Access One, Inc. (144A) Series 3A Cl. A2 6.615% 11/15/2028................. 6,460,000 6,484,849 Nationslink Funding Corp. Series 1999-Sl Cl. A5 6.888% 11/10/2030................. 3,660,000 3,760,501 -------------- 10,245,350 -------------- Total Other Securitized Loans (Cost $88,422,370).................. 90,143,136 -------------- TAXABLE MUNICIPAL BONDS (0.2%) Chicago Illinois Tax Increment Taxable Allocation Central Loop B 6.375% 06/01/2003 (Cost $2,285,267)................. 2,250,000 2,307,082 -------------- Total Bonds (Cost $400,566,486)................. 408,017,860 --------------
See Accompanying Notes to Financial Statements 66 68 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- REPURCHASE AGREEMENT (3.5%) J.P. Morgan Securities, Inc. 3.94% Dated 06/29/2001, due 07/02/2001 in the amount of $37,484,270. Collateralized by U.S. Treasury Notes 7.25% due 08/15/2004 U.S. Treasury Bonds 5.375% to 15.75% due 08/15/2001 to 02/15/2031 U.S. Treasury Strips due 08/15/2001 to 08/15/2028 (Cost $37,480,220)................ $37,480,220 $ 37,480,220 -------------- TOTAL INVESTMENTS (99.0%) (Cost $968,940,651)................... 1,054,208,263 OTHER ASSETS LESS LIABILITIES (1.0%) 10,977,990 -------------- NET ASSETS (100.0%).................... $1,065,186,253 ==============
* Non-income producing ** Variable rate security - the rate reported is the rate in effect as of June 30, 2001
COLUMBIA SHORT TERM BOND FUND JUNE 30, 2001 (UNAUDITED) PRINCIPAL AMOUNT VALUE ---------------------------------------------------------------------- U.S. GOVERNMENT SECURITIES (26.6%) U.S. TREASURY NOTES & BONDS (10.5%) ++U.S. Treasury Notes 6.125% 12/31/2001..................... $2,600,000 $ 2,630,875 U.S. Treasury Inflation Index Bonds 3.375% 01/15/2007..................... 1,562,960 1,582,985 ----------- 4,213,860 ----------- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) (1.6%) 7.00% 04/15/2029........................ 168,281 169,912 8.00% 11/15/2030........................ 459,576 476,523 ----------- 646,435 ----------- FEDERAL HOME LOAN MORTGAGE CORP. (FHLMC) (1.1%) +7.50% 07/01/2031....................... 420,000 428,400 ----------- FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) (12.2%) +6.00% 07/15/2031....................... 350,000 336,000 7.00% 03/01/2015 - 03/01/2016........... 4,099,699 4,174,006 7.50% 04/01/2031........................ 346,684 353,943 ----------- 4,863,949 -----------
PRINCIPAL AMOUNT VALUE ---------------------------------------------------------------------- AGENCY COLLATERALIZED MORTGAGE OBLIGATION (1.2%) FNMA Gtd. Remic Pass Thru Ctf. Remic Tr. 1991-146 Cl. Z 8.00% 10/25/2006...................... $ 133,919 $ 138,898 FHLMC Multiclass Mtg. Partn. Ctfs Gtd. Series 1138 Cl. G 8.50% 09/15/2006...................... 313,381 326,894 ----------- 465,792 ----------- Total U.S. Government Securities (Cost $10,580,438)............................ 10,618,436 ----------- CORPORATE NOTES (39.6%) INDUSTRIAL (18.7%) Alcoa, Inc. 7.25% 08/01/2005...................... 750,000 787,650 American Home Products Corp. 6.25% 03/15/2006...................... 400,000 401,800 BP America, Inc. Medium Term Notes, Series 7 5.00% 12/16/2003...................... 500,000 498,760 Caterpillar Financial Services Corp. 6.875% 08/01/2004..................... 450,000 462,199 Computer Sciences Corp. 7.50% 08/08/2005...................... 200,000 203,876 Conoco, Inc. 5.90% 04/15/2004...................... 500,000 503,735 Dow Chemical Co. 7.00% 08/15/2005...................... 750,000 783,585 Ingersoll-Rand Co. 6.25% 05/15/2006...................... 500,000 501,185 International Paper Co. 8.00% 07/08/2003...................... 500,000 523,250 MCI Communications Corp. 6.125% 04/15/2002..................... 750,000 754,103 Marriott International, Series E (144A) 7.00% 01/15/2008...................... 250,000 248,105 Pepsi Bottling Holdings, Inc. (144A) 5.375% 02/17/2004..................... 750,000 751,448 Phillips Petroleum Co. 8.50% 05/25/2005...................... 500,000 541,925 TCI Communications, Inc. 7.25% 08/01/2005...................... 500,000 514,180 ----------- 7,475,801 -----------
See Accompanying Notes to Financial Statements 67 69 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
COLUMBIA SHORT TERM BOND FUND (CONT.) JUNE 30, 2001 (UNAUDITED) PRINCIPAL AMOUNT VALUE ---------------------------------------------------------------------- FINANCIAL (13.7%) Bank One Corp. 6.50% 02/01/2006...................... $ 500,000 $ 506,950 Citigroup, Inc. 5.70% 02/06/2004...................... 300,000 302,814 6.75% 12/01/2005...................... 750,000 776,318 Equitable Cos., Inc. 9.00% 12/15/2004...................... 700,000 763,413 First Union Corp. 7.55% 08/18/2005...................... 750,000 793,643 Ford Motor Credit Co. 6.875% 02/01/2006..................... 725,000 739,050 International Lease Finance Corp. Medium Term Notes, Series M 5.50% 06/07/2004...................... 500,000 500,920 Merrill Lynch & Co, Inc. Medium Term Notes, Series B 6.15% 01/26/2006...................... 600,000 604,398 Simon Property Group L.P. 6.625% 06/15/2003..................... 500,000 504,920 ----------- 5,492,426 ----------- UTILITIES (4.3%) Coastal Corp. 6.50% 05/15/2006...................... 350,000 346,822 FPL Group Capital, Inc. 7.625% 09/15/2006..................... 500,000 529,593 Pinnacle West Capital Corp. 6.40% 04/01/2006...................... 350,000 345,121 TXU Eastern Funding Co. 6.45% 05/15/2005...................... 500,000 492,982 ----------- 1,714,518 ----------- INTERNATIONAL (2.9%) Korea Development Bank 7.125% 04/22/2004..................... 350,000 360,484 Ontario Province 7.625% 06/22/2004..................... 750,000 799,005 ----------- 1,159,489 ----------- Total Corporate Notes (Cost $15,523,535)...................... 15,842,234 -----------
PRINCIPAL AMOUNT VALUE ---------------------------------------------------------------------- OTHER SECURITIZED LOANS (27.9%) ASSET BACKED SECURITIES (11.6%) IMC Home Equity Loan Trust Series 1997-3 Cl. A7 7.08% 08/20/2028...................... $ 765,696 $ 787,053 Mellon Bank Home Equity Installment Loan Trust Series 1998-1 Cl. A3 6.32% 06/25/2012...................... 1,250,000 1,265,441 *SLM Student Loan Trust Series 1996-3 Cl. A2 4.13% 10/26/2009...................... 1,200,000 1,192,029 TMS Home Equity Loan Trust Series 1996-C Cl. A7 7.91% 12/15/2027...................... 1,000,000 1,042,064 UCFC Home Equity Loan Trust Series 1997-D Cl. A6 7.095% 04/15/2029..................... 350,000 355,985 ----------- 4,642,572 ----------- COLLATERALIZED MORTGAGE OBLIGATIONS (14.6%) Countrywide Home Loans Series 2000-9 Cl. A6 7.50% 01/25/2031...................... 553,646 560,869 Ocwen Residential MBS Corp. (144A) Series 1998-R1 Cl. A1 7.00% 10/25/2040...................... 948,755 966,306 PNC Mortgage Securities Corp. Series 1999-5 Cl. 2A6 6.75% 07/25/2029...................... 881,032 897,106 *PNC Mortgage Securities Corp. (144A) Series 1996-PR1 Cl. A 6.56% 4/28/2027....................... 224,988 214,481 Residential Asset Securitization Trust Series 1999-A1 Cl. A1 6.75% 03/25/2029...................... 668,417 675,296 Series 1999-A4 Cl. A1 6.50% 03/25/2029...................... 859,318 863,340 SACO I, Inc. (144A) Series 1997-2 Cl. 1A5 7.00% 08/25/2036...................... 750,000 748,831 Structured Asset Securities Corp. Series 1999-ALS2 Cl. A2 6.75% 07/25/2029...................... 920,696 936,533 ----------- 5,862,762 -----------
See Accompanying Notes to Financial Statements 68 70 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE ---------------------------------------------------------------------- COMMERCIAL MORTGAGE BACKED SECURITIES (1.7%) Morgan Stanley Capital I, Inc. Series 1999-CAM1 Cl. A3 6.92% 11/15/2008...................... $ 300,000 $ 308,322 Prudential Securities Secured Financing Corp. Series 1999-C2 Cl. A2 7.193% 04/15/2009..................... 350,000 362,709 ----------- 671,031 ----------- Total Other Securitized Loans (Cost $10,925,614)...................... 11,176,365 ----------- REPURCHASE AGREEMENT (7.5%) ++J.P. Morgan Securities, Inc. 3.94% Dated 06/29/2001, due 07/02/2001 in the amount of $3,000,970. Collateralized by U.S. Treasury Notes 7.25% due 08/15/2004 U.S. Treasury Bonds 5.375% to 15.75% due 08/15/2001 to 02/15/2031 U.S. Treasury Strips due 08/15/2001 to 08/15/2028 (Cost $3,000,646)..................... 3,000,646 3,000,646 ----------- TOTAL INVESTMENTS (101.6%) (Cost $40,030,233)........................ 40,637,681 OTHER ASSETS LESS LIABILITIES (-1.6%)...... (649,272) ----------- NET ASSETS (100.0%)........................ $39,988,409 ===========
* Variable rate security - the rate reported is the rate in effect as of June 30, 2001 + Security purchased on a when-issued basis. ++ A portion of this security was segregated at the custodian to cover a when-issued security.
COLUMBIA FIXED INCOME SECURITIES FUND JUNE 30, 2001 (UNAUDITED) PRINCIPAL AMOUNT VALUE ---------------------------------------------------------------------- U.S. GOVERNMENT SECURITIES (36.0%) U.S. TREASURY NOTES & BONDS (10.9%) ++U.S. Treasury Bonds 8.875% 08/15/2017................... $22,960,000 $ 30,152,938 U.S. Treasury Inflation Index Bonds 3.375% 01/15/2007................... 15,495,632 15,694,170 ------------ 45,847,108 ------------
PRINCIPAL AMOUNT VALUE ---------------------------------------------------------------------- U.S. AGENCY BONDS (2.0%) Federal National Mortgage Association 7.125% 01/15/2030................... $8,075,000 $ 8,607,385 ------------ GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) (4.7%) 7.00% 02/15/2031...................... 11,907,257 12,022,609 7.50% 09/15/2030 - 01/15/2031......... 2,709,992 2,781,130 8.00% 7/15/2027 - 12/15/2030.......... 4,788,516 4,954,724 ------------ 19,758,463 ------------ FEDERAL HOME LOAN MORTGAGE CORP. (FHLMC) (5.8%) 6.00% 04/01/2016...................... 13,401,327 13,225,435 7.00% 01/01/2030 - 03/01/2031......... 9,100,020 9,154,051 +7.50% 11/01/2030 - 07/01/2031........ 2,032,771 2,074,943 ------------ 24,454,429 ------------ FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) (6.0%) 6.00% 03/01/2031...................... 469,714 451,513 7.00% 12/01/2029 - 11/01/2030......... 4,899,047 4,913,371 7.50% 04/01/2030 - 05/01/2031......... 19,397,477 19,803,611 ------------ 25,168,495 ------------ FEDERAL HOUSING ADMINISTRATION (FHA) (0.5%) FHA Insured Project Pool #051-11078 8.35% 04/01/2030.................... 2,163,273 2,259,029 ------------ AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS (6.1%) GNMA Gtd. Remic Pass Thru Secs. Remic Tr. 2000-15 Cl. PD 7.50% 05/20/2026.................... 8,422,500 8,643,591 FNMA Gtd. Remic Pass Thru Ctf. Remic Tr. 1999-19 Cl. PF 6.00% 06/25/2024.................... 1,480,000 1,464,749 FHLMC GNMA Multiclass Mtg. Partn. Ctfs. Gtd. Series 24 Cl. J 6.25% 11/25/2023.................... 2,310,000 2,281,691 FHLMC Multiclass Mtg. Partn. Ctfs. Gtd. Series 2235 Cl. VN 7.00% 06/15/2014.................... 4,680,000 4,805,681 Gtd. Series 1558 Cl. C 6.50% 07/15/2023.................... 2,991,000 2,995,450 Gtd. Series 2065 Cl. PB 6.25% 01/15/2024.................... 1,050,000 1,054,989 Gtd. Series 2085 Cl. PD 6.25% 11/15/2026.................... 2,251,000 2,211,934 Gtd. Series 2113 Cl. MU 6.50% 08/15/2027.................... 2,160,000 2,145,139 ------------ 25,603,224 ------------ Total U.S. Government Securities (Cost $149,313,253)........................... 151,698,133 ------------
See Accompanying Notes to Financial Statements 69 71 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
COLUMBIA FIXED INCOME SECURITIES FUND (CONT.) JUNE 30, 2001 (UNAUDITED) PRINCIPAL AMOUNT VALUE ---------------------------------------------------------------------- CORPORATE NOTES & BONDS (43.5%) INDUSTRIAL (27.8%) Adelphia Communications Corp. Series B 7.50% 01/15/2004.................... $2,000,000 $ 1,900,000 Alcan, Inc. 7.25% 03/15/2031.................... 1,900,000 1,872,868 Alcoa, Inc., Series B 6.50% 06/15/2018.................... 975,000 920,741 Allied Waste North America, Inc. Series B 10.00% 08/01/2009................... 1,000,000 1,027,500 American Home Products Corp. 6.25% 03/15/2006.................... 3,950,000 3,967,775 Anadarko Finance Co. (144A) 7.50% 05/01/2031.................... 2,000,000 2,033,180 Anheuser-Busch Cos., Inc. 5.75% 04/01/2010.................... 3,800,000 3,648,684 AOL Time Warner, Inc. 7.625% 04/15/2031................... 1,925,000 1,924,519 Ball Corp. 7.75% 08/01/2006.................... 850,000 858,500 BP Amoco plc 5.90% 04/15/2009.................... 1,800,000 1,770,246 Buckeye Technologies, Inc. 8.50% 12/15/2005.................... 500,000 496,250 Burlington Northern Sante Fe Corp. 7.125% 12/15/2010................... 1,900,000 1,909,728 6.75% 07/15/2011.................... 2,000,000 1,963,520 Charter Communications Holdings L.L.C./Charter Communications Holdings Capital Corp. 8.25% 04/01/2007.................... 2,000,000 1,870,000 Coca-Cola Enterprises, Inc. 6.75% 01/15/2038.................... 1,000,000 937,910 Computer Sciences Corp. 7.50% 08/08/2005.................... 1,800,000 1,834,884 Cox Enterprises, Inc. (144A) 8.00% 02/15/2007.................... 400,000 418,034 CSC Holdings, Inc. 7.875% 12/15/2007................... 3,000,000 2,959,530 Diageo Capital plc 6.625% 06/24/2004................... 2,700,000 2,780,838 Dow Chemical Co. 7.375% 11/01/2029................... 925,000 949,087
PRINCIPAL AMOUNT VALUE ---------------------------------------------------------------------- Federal Express Corp. Pass Thru Trust Series 1997-1C 7.65% 01/15/2014.................... $2,030,492 $ 2,045,396 Gulf Canada Resources Ltd. 9.625% 07/01/2005................... 1,900,000 1,954,625 Harrah's Operating, Inc. 7.875% 12/15/2005................... 500,000 507,500 HCA-The Healthcare Co. 6.91% 06/15/2005.................... 500,000 487,500 Heritage Media Corp. 8.75% 02/15/2006.................... 1,750,000 1,750,000 Hewlett-Packard Co. 7.15% 06/15/2005.................... 3,485,000 3,604,957 Honeywell International, Inc. 7.50% 03/01/2010.................... 2,100,000 2,230,916 Ingersoll-Rand Co. 6.25% 05/15/2006.................... 3,300,000 3,307,821 International Paper Co. 8.00% 07/08/2003.................... 3,925,000 4,107,513 Kroger Co. 7.80% 08/15/2007.................... 3,800,000 4,008,924 Lear Corp. Series B 7.96% 05/15/2005.................... 1,500,000 1,526,831 Lowe's Cos., Inc. 6.50% 03/15/2029.................... 2,200,000 1,956,299 MCI Communications Corp. 6.125% 04/15/2002................... 4,755,000 4,781,010 MCI Worldcom, Inc. 8.875% 01/15/2006................... 900,000 931,599 Park Place Entertainment Corp. 9.375% 02/15/2007................... 2,725,000 2,864,656 Pepsi Bottling Holdings, Inc. (144A) 5.625% 02/17/2009................... 5,000,000 4,798,250 Phillips Petroleum Co. 8.50% 05/25/2005.................... 3,625,000 3,928,956 Precision Castparts Corp. 8.75% 03/15/2005.................... 2,025,000 2,128,986 Pride International, Inc. 9.375% 05/01/2007................... 500,000 526,250 SBC Communications, Inc. 5.75% 05/02/2006.................... 3,200,000 3,154,112 Shaw Communications, Inc. 7.25% 04/06/2011.................... 3,000,000 2,968,860 Station Casinos, Inc. 9.75% 04/15/2007.................... 2,000,000 2,060,000 TCI Communications, Inc. 7.25% 08/01/2005.................... 3,540,000 3,640,394 Tenet Healthcare Corp. 8.625% 12/01/2003................... 990,000 1,027,125 8.00% 01/15/2005.................... 500,000 513,125
See Accompanying Notes to Financial Statements 70 72 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE ---------------------------------------------------------------------- Time Warner, Inc. 7.975% 08/15/2004................... $3,875,000 $ 4,116,498 Toll Corp. 7.75% 09/15/2007.................... 1,000,000 961,250 Tricon Global Restaurants, Inc. 8.50% 04/15/2006.................... 1,250,000 1,278,125 Tyco International Group S.A. 6.25% 06/15/2003.................... 3,075,000 3,117,250 United Rentals, Inc. (144A) 10.75% 04/15/2008................... 2,000,000 2,065,000 United Technologies Corp. 7.125% 11/15/2010................... 3,000,000 3,140,760 US West Communications, Inc. 5.625% 11/15/2008................... 3,400,000 3,097,978 Verizon Global Funding Corp. (144A) 7.25% 12/01/2010.................... 2,400,000 2,445,168 ------------ 117,077,428 ------------ FINANCIAL (6.0%) Bank of America Corp. 7.80% 02/15/2010.................... 2,700,000 2,868,264 CIT Group, Inc. 5.625% 05/17/2004................... 2,000,000 1,981,120 Citigroup, Inc. 7.25% 10/01/2010.................... 1,500,000 1,557,075 Equitable Cos., Inc. 9.00% 12/15/2004.................... 980,000 1,068,778 First Union National Bank 7.80% 08/18/2010.................... 2,235,000 2,377,146 Ford Motor Credit Co. 6.875% 02/01/2006................... 5,700,000 5,810,466 Merrill Lynch & Co, Inc. Medium Term Notes, Series B 6.15% 01/26/2006.................... 3,700,000 3,727,121 Simon Property Group L.P. 6.625% 06/15/2003................... 2,050,000 2,070,172 Wells Fargo Financial, Inc. 7.60% 05/03/2005.................... 3,800,000 4,030,090 ------------ 25,490,232 ------------ UTILITIES (5.2%) Calpine Corp. 7.625% 04/15/2006................... 450,000 435,298 8.75% 07/15/2007.................... 1,000,000 991,030 Coastal Corp. 7.625% 09/01/2008................... 2,675,000 2,718,629 Flag Ltd. 8.25% 01/30/2008.................... 500,000 390,000 FPL Group Capital, Inc. 7.625% 09/15/2006................... 2,725,000 2,886,285
PRINCIPAL AMOUNT VALUE ---------------------------------------------------------------------- Kinder Morgan Energy Partners L.P. 6.75% 3/15/2011..................... $3,250,000 $ 3,199,983 Pinnacle West Capital Corp. 6.40% 04/01/2006.................... 3,550,000 3,500,513 Progress Energy, Inc. 7.75% 03/01/2031.................... 1,930,000 1,989,560 Texas Eastern Transmission 7.30% 12/01/2010.................... 1,800,000 1,848,348 TXU Eastern Funding Co. 6.45% 05/15/2005.................... 4,200,000 4,141,049 ------------ 22,100,695 ------------ INTERNATIONAL (4.5%) British Columbia Province 5.375% 10/29/2008................... 1,900,000 1,827,612 Government of Canada 5.25% 11/05/2008.................... 5,000,000 4,763,200 Kingdom of Spain 7.00% 07/19/2005.................... 3,700,000 3,910,090 Korea Development Bank 6.625% 11/21/2003................... 550,000 559,328 7.125% 04/22/2004................... 2,525,000 2,600,636 Quebec Province 7.00% 01/30/2007.................... 2,490,000 2,610,865 7.125% 02/09/2024................... 1,090,000 1,112,857 United Mexican States 9.875% 02/01/2010................... 1,250,000 1,367,500 ------------ 18,752,088 ------------ Total Corporate Notes & Bonds (Cost $181,130,196)..................... 183,420,443 ------------ OTHER SECURITIZED LOANS (17.3%) ASSET BACKED SECURITIES (8.8%) Cityscape Home Loan Owner Trust Series 1997-4 Cl. A4 7.44% 10/25/2018.................... 3,400,000 3,467,604 Contimortgage Home Equity Loan Trust Series 1999-3 Cl. A6 7.68% 12/25/2029.................... 2,700,000 2,781,761 IMC Home Equity Loan Trust Series 1995-3 Cl. A5 7.50% 04/25/2026.................... 800,000 825,889 Series 1997-3 Cl. A6 7.52% 08/20/2028.................... 4,240,000 4,381,920 Series 1997-5 Cl. A9 7.31% 11/20/2028.................... 4,465,000 4,494,898 New Century Home Equity Loan Trust Series 1999-NCA Cl. A7 7.32% 07/25/2029.................... 5,296,119 5,444,314
See Accompanying Notes to Financial Statements 71 73 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
COLUMBIA FIXED INCOME SECURITIES FUND (CONT.) JUNE 30, 2001 (UNAUDITED) PRINCIPAL AMOUNT VALUE ---------------------------------------------------------------------- Oakwood Mortgage Investors, Inc. Series 2000-D Cl. A7 7.40% 07/15/2030.................... $5,300,000 $ 5,290,516 Salomon Brothers Mortgage Securities VII, Inc. Series 1998-AQ1 Cl. A5 7.15% 06/25/2028.................... 1,860,000 1,898,842 Saxon Asset Securities Co. Series 1996-1 Cl. A2 8.06% 09/25/2027.................... 6,900,000 7,256,669 UCFC Home Equity Loan Trust Series 1997-D Cl. A6 7.095% 04/15/2029................... 1,150,000 1,169,666 ------------ 37,012,079 ------------ COLLATERALIZED MORTGAGE OBLIGATIONS (6.1%) *Bear Stearns Mortgage Securities, Inc. Series 1996-2 Cl. A1 5.44% 01/25/2025.................... 2,956,137 2,744,014 CMC Securities Corp. IV Series 1997-2 Cl. 1A12 7.25% 11/25/2027.................... 3,950,000 4,039,843 *DLJ Mortgage Acceptance Corp. (144A) Series 1999-B Cl. A1 6.67% 08/28/2029.................... 2,640,532 2,571,350 PNC Mortgage Securities Corp. Series 1997-4 Cl. 2PP2 7.50% 07/25/2027.................... 3,095,000 3,170,180 Series 1998-12 Cl. 4A4 6.50% 01/25/2029.................... 3,547,395 3,550,035 Series 1999-5 Cl. 2A6 6.75% 07/25/2029.................... 5,317,454 5,414,471 Residential Funding Mortgage Securities, Inc. Series 1993-S45 Cl. A10 8.00% 12/25/2023.................... 245,990 247,064 Structured Asset Securities Corp. Series 1999-ALS2 Cl. A2 6.75% 07/25/2029.................... 4,035,834 4,105,253 ------------ 25,842,210 ------------ COMMERCIAL MORTGAGE BACKED SECURITIES (2.4%) Commercial Capital Access One, Inc. (144A) Series 3A Cl. A2 6.615% 11/15/2028................... 5,850,000 5,872,502
PRINCIPAL AMOUNT VALUE ---------------------------------------------------------------------- Morgan Stanley Capital I, Inc. Series 1999-CAM1 Cl. A3 6.92% 11/15/2008.................... $4,320,000 $ 4,439,840 ------------ 10,312,342 ------------ Total Other Securitized Loans (Cost $71,512,564)............................ 73,166,631 ------------ REPURCHASE AGREEMENT (2.0%) J.P. Morgan Securities, Inc. 3.94% Dated 06/29/2001, due 07/02/2001 in the amount of $8,327,081. Collateralized by U.S. Treasury Notes 7.25% due 08/15/2004 U.S. Treasury Bonds 5.375% to 15.75% due 08/15/2001 to 02/15/2031 U.S. Treasury Strips due 08/15/2001 to 08/15/2028 (Cost $8,326,181)........ 8,326,181 8,326,181 ------------ TOTAL INVESTMENTS (98.8%) (Cost $410,282,194)........................... 416,611,388 OTHER ASSETS LESS LIABILITIES (1.2%)..... 5,143,710 ------------ NET ASSETS (100.0%)...................... $421,755,098 ============
* Variable rate security - the rate reported is the rate in effect as of June 30, 2001 + Security purchased on when-issued basis. ++ A portion of this security was segregated at the custodian to cover a when-issued security.
COLUMBIA NATIONAL MUNICIPAL BOND FUND JUNE 30, 2001 (UNAUDITED) PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- MUNICIPAL BONDS (97.6%) ALASKA (4.7%) Alaska Municipal Bond Bank Authority Series C (Insured Revenue) 5.50% 09/15/2016.............................. $100,000 $ 103,965 Palmer Alaska Valley Hospital Association (Insured Revenue) 5.35% 12/01/2012...... 125,000 128,183
See Accompanying Notes to Financial Statements 72 74 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- Alaska Industrial Development & Export Authority Snettisham Hydroelectric Series 1 Unrefunded Balance (Insured Revenue) (AMT) 5.50% 01/01/2008......... $ 95,000 $ 101,110 Alaska Industrial Development & Export Authority Snettisham Hydroelectric Series 1 (Pre-Refunded) (AMT) 5.50% 01/01/2008.............................. 5,000 5,351 Alaska State Housing Finance Corp. Coll. First Series Veterans Mtg. A2 (Insured General Obligation) (AMT) 6.00% 06/01/2015.............................. 150,000 157,040 ----------- 495,649 ----------- ARIZONA (1.0%) Sedona Arizona Certificates of Participation (Other) 5.75% 07/01/2007.............................. 100,000 105,194 ----------- COLORADO (0.9%) Colorado Housing Financial Authority Single Family PG Sub B (Revenue) 4.875% 04/01/2007.............................. 95,000 97,697 ----------- GEORGIA (1.4%) Georgia Municipal Electric Power Series B (Revenue) 5.50% 01/01/2018.............. 150,000 150,784 ----------- HAWAII (1.0%) Hawaii State Harbor Capital Improvement (Insured Revenue) (AMT) 6.20% 07/01/2008.............................. 100,000 107,124 ----------- IDAHO (1.8%) Idaho Health Facilities Authority Bingham Memorial Hospital Project (Revenue) 5.85% 03/01/2019........................ 100,000 86,637 Idaho Student Loan Fund Marketing Association, Inc. Series C (Revenue) (AMT) 5.60% 04/01/2007.................. 100,000 101,359 ----------- 187,996 ----------- ILLINOIS (4.1%) Broadview Illinois Tax Increment (Revenue) 4.90% 07/01/2006........................ 75,000 74,615 Chicago Illinois Park District Aquarium & Museum (Insured General Obligation) 5.80% 01/01/2018........................ 150,000 157,184 Regional Transportation Authority Illinois Series A (Insured Revenue) 6.40% 06/01/2012.............................. 100,000 115,170 Will County Illinois Forest Preservation District Series B (Insured General Obligation) 0.00% 12/01/2011............ 150,000 90,637 ----------- 437,606 -----------
PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- INDIANA (1.0%) Indiana Transportation Financial Authority Airport Facilities Lease Series A (Revenue) 5.50% 11/01/2017.............. $100,000 $ 101,466 ----------- IOWA (1.4%) Iowa Finance Authority Single Family Mortgage Series A (Insured Revenue) 5.80% 07/01/2016........................ 140,000 144,803 ----------- KENTUCKY (2.7%) Kentucky State Property & Buildings Commission Project #65 (Revenue) 5.90% 02/01/2016.............................. 200,000 222,432 Louisville & Jefferson County Kentucky Visitors & Convention Commission Capital Appreciation Series BBB (Insured Revenue) 0.00% 12/01/2008........................ 100,000 70,670 ----------- 293,102 ----------- MAINE (1.0%) Regional Waste System Industry Maine Solid Waste Resource Recovery Series Q (Revenue) (AMT) 5.50% 07/01/2004........ 100,000 104,645 ----------- MARYLAND (0.9%) Maryland State Economic Development Corp. Student Housing Collegiate Housing Towson Series A (Revenue) 5.75% 06/01/2029.............................. 100,000 93,056 ----------- MICHIGAN (3.7%) Detroit Michigan City School District Refunding Series C (Insured General Obligation) 5.25% 05/01/2012............ 175,000 185,455 Michigan State Hospital Finance Authority Ascension Health Credit Series A (Revenue) 6.00% 11/15/2019........................ 100,000 105,358 5.375% 11/15/2033........................ 100,000 103,363 ----------- 394,176 -----------
See Accompanying Notes to Financial Statements 73 75 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
COLUMBIA NATIONAL MUNICIPAL BOND FUND (CONT.) JUNE 30, 2001 (UNAUDITED) PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- MISSISSIPPI (3.5%) Jones County Mississippi Hospital Refunding-South Central Regional Medical Center (Revenue) 4.90% 12/01/2004....... $100,000 $ 99,531 Mississippi Development Bank Special Obligation Natchez Convention Center Project (Insured Revenue) 6.50% 07/01/2013.............................. 230,000 268,479 ----------- 368,010 ----------- MONTANA (1.9%) Whitefish Montana Tax Increment Urban Renewal (Revenue) 6.625% 07/15/2020..... 200,000 203,368 ----------- NEBRASKA (1.0%) American Public Energy Agency Nebraska Gas Supply Public Gas Agency Project Series A (Insured Revenue) 5.25% 06/01/2011.... 100,000 101,883 ----------- NEVADA (1.9%) Clark County Nevada Passenger Facility Charge Las Vegas McCarran International Airport B (Insured Revenue) (AMT) 6.25% 07/01/2011.............................. 100,000 104,262 Clark County Nevada School District Comp Interest Series B (Insured General Obligation) 0.00% 06/01/2003............ 100,000 93,550 ----------- 197,812 ----------- NEW YORK (3.5%) New York City, New York Series A (General Obligation) 6.00% 05/15/2021............ 250,000 270,310 New York State Urban Development Corporation Refunding Correctional Capital Facilities A (Revenue) 5.45% 01/01/2007.............................. 100,000 106,805 ----------- 377,115 ----------- OHIO (1.1%) Oak Hills Ohio Local School District (Insured General Obligation) 7.20% 12/01/2009.............................. 100,000 119,989 -----------
PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- OKLAHOMA (2.0%) Okmulgee County Oklahoma 1st Mortgage (Insured Revenue) 6.00% 03/01/2015...... $200,000 $ 215,474 ----------- OREGON (27.5%) Bend Oregon Municipal Airport PJ Series B (Revenue) (AMT) 5.375% 06/01/2013....... 100,000 102,754 Benton County Oregon Hospital Facilities Authority Refunding Samaritan Health Services Project (Revenue) 4.20% 10/01/2005........................ 40,000 39,929 4.60% 10/01/2009......................... 40,000 39,546 Clackamas County Oregon Limited Tax Assessment (Other) 6.25% 05/01/2015..... 200,000 200,538 Clackamas County Oregon Hospital Facility Authority Refunding Odd Fellows Home Series A (Revenue) 5.875% 09/15/2021.... 50,000 42,921 Damascus Oregon Water District Certificates of Participation (Other) 5.25% 03/01/2019........................ 100,000 95,974 Eugene Oregon Airport (Revenue) (AMT) 5.50% 05/01/2003........................ 100,000 103,102 Eugene Oregon Trojan Nuclear Project (Revenue) 5.90% 09/01/2009.............. 35,000 35,056 Hillsboro Oregon Hospital Facility Authority Refunding Tuality Healthcare (Revenue) 5.25% 10/01/2004........................ 150,000 151,275 5.75% 10/01/2012......................... 25,000 24,813 Klamath Community College Service District Oregon (Revenue) 4.70% 04/01/2010........................ 55,000 55,318 4.80% 04/01/2011......................... 25,000 25,160 Lebanon Oregon Urban Renewal Agency (Revenue) 5.625% 06/01/2019............. 100,000 98,924 Linn Benton Community College Oregon (Insured General Obligation) 0.00% 06/15/2015.............................. 240,000 117,326 Oregon Health Sciences University Capital Appreciation Series A (Insured Revenue) 0.00% 07/01/2016........................ 370,000 169,201 Oregon School Boards Association Flexfund Financing Program Series E (Other) 5.50% 06/01/2005.............................. 100,000 101,406
See Accompanying Notes to Financial Statements 74 76 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- Oregon State Veterans Welfare Series 75 (General Obligation) 5.875% 10/01/2018.............................. $ 35,000 $ 36,091 Oregon State Housing & Community Services Department Single Family Mortgage Program Series B (Revenue) 6.00% 07/01/2012.............................. 80,000 84,622 Port of St. Helens Oregon Pollution Control Portland General Electric Co. Series B (Revenue) 4.80% 06/01/2010..... 105,000 102,868 Port Umpqua Oregon Pollution Control Refunding-International Paper Co. PJS - A (Revenue) 5.05% 06/01/2009...... 135,000 135,355 Portland Oregon Housing Authority Pearl Court Apartments (Revenue) (AMT) 5.55% 01/01/2003.............................. 100,000 100,197 Redmond Oregon Refunding City of Redmond Airport Improvement Project (General Obligation) 4.50% 05/01/2007............ 50,000 50,702 Redmond Oregon Urban Renewal Agency Downtown Area B (Revenue) 5.65% 06/01/2013.............................. 100,000 100,314 Roseburg Oregon Urban Sanitation Authority (General Obligation) 5.40% 09/01/2002... 100,000 102,106 Salem Oregon Educational Facilities Refunding - Willamette University Projects (Revenue) 6.00% 04/01/2010..... 100,000 105,204 Salem Oregon Educational Facilities Willamette University Projects (Revenue) 6.10% 04/01/2014........................ 120,000 124,877 Salem Oregon Hospital Facility Authority Capital Manor, Inc. (Revenue) 7.50% 12/01/2024.............................. 150,000 154,090 Sunriver Oregon Library County Service District (General Obligation) 5.75% 06/01/2004.............................. 20,000 21,181 Washington County Oregon Housing Authority Affordable Housing Pool Series A (Revenue) 6.00% 07/01/2020.............. 100,000 97,134 Washington & Clackamas Counties Oregon School District #23J Tigard (General Obligation) 0.00% 06/15/2021............ 450,000 149,580 West Linn Oregon Water System (Revenue) 6.00% 10/01/2020........................ 165,000 165,355 ----------- 2,932,919 -----------
PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- SOUTH CAROLINA (1.0%) Piedmont Municipal Power Agency South Carolina Electric Unrefunded Balance Series A (Insured Revenue) 6.125% 01/01/2007.............................. $100,000 $ 109,738 ----------- SOUTH DAKOTA (1.3%) South Dakota State Building Authority Lease Capital Appreciation Series A (Insured Revenue) 0.00% 12/01/2013...... 250,000 133,860 ----------- TEXAS (12.9%) Amarillo Texas Health Facilities Corp. Baptist St. Anthonys Hospital Corp. (Insured Revenue) 5.50% 01/01/2013...... 100,000 106,092 Arlington Texas Independent School District Capital Appreciation Refunding (Insured General Obligation) 0.00% 02/15/2007.............................. 150,000 117,893 Cleburne Texas Capital Appreciation Certificates of Obligation (Insured General Obligation) 0.00% 02/15/2017.... 450,000 188,879 Harris County Texas Health Facilities De Teco Project Series B (Insured Revenue) 5.70% 02/15/2015........................ 150,000 157,413 Laredo Texas Sports Venue Sales Tax (Insured Revenue) 5.75% 03/15/2013...... 200,000 214,230 Lubbock Texas Health Facility Development St. Josephs Health System (Revenue) 5.25% 07/01/2012........................ 150,000 153,405 Magnolia Texas Independent School District (Insured General Obligation) 5.25% 08/15/2017.............................. 280,000 282,920 West Harris County Texas Municipal Utility District #7 Capital Appreciation Refunding (Insured General Obligation) 0.00% 03/01/2009........................ 225,000 155,855 ----------- 1,376,687 -----------
See Accompanying Notes to Financial Statements 75 77 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
COLUMBIA NATIONAL MUNICIPAL BOND FUND (CONT.) JUNE 30, 2001 (UNAUDITED) PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- WASHINGTON (13.4%) Jefferson County Washington Public Utility District #1 Water & Sewer (Revenue) 5.25% 05/01/2016........................ $ 50,000 $ 48,876 5.25% 05/01/2017......................... 50,000 48,419 King County Washington Public Hospital District #4 Snoqualmie Valley Hospital (General Obligation) 7.00% 12/01/2011... 150,000 151,774 King County Washington School District #415 Kent Series B (General Obligation) 6.00% 12/01/2008........................ 100,000 110,956 Pierce County Washington Housing Authority Housing (Revenue) 5.40% 12/01/2013...... 100,000 94,379 Port of Grays Harbor Washington (Revenue) (AMT) 6.375% 12/01/2014................. 150,000 161,575 Seattle Washington Municipal Light & Power (Revenue) 6.00% 10/01/2016.............. 150,000 160,903 Shelton Washington Water & Sewer (Revenue) 5.25% 12/01/2018........................ 50,000 48,710 Tacoma Washington Solid Waste Utilities Refunding Series B (Insured Revenue) 6.00% 12/01/2009........................ 100,000 111,532 Thurston County Washington School District #401 Rochester (General Obligation) 4.80% 12/01/2007........................ 55,000 55,130 Toppenish Washington (General Obligation) 4.60% 12/01/2006........................ 65,000 66,669 University of Washington Educational Research Properties Lease 4225 Roosevelt Project Series A (Revenue) 5.375% 06/01/2029.............................. 100,000 98,377 Washington State Certificates Participation Department General Administration (Other) 5.40% 07/01/2013.............................. 100,000 104,019 Washington State Public Power Supply System Nuclear Project #1 Refunding Series A (Revenue) 6.00% 07/01/2005..... 100,000 108,071 Washington State Public Power Supply System Nuclear Project #2 Refunding Series A (Revenue) 5.00% 07/01/2011..... 50,000 51,322
PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- Yakima County Washington School District #119 Selah (Insured General Obligation) 5.00% 12/01/2006........................ $ 10,000 $ 10,514 ----------- 1,431,226 ----------- WYOMING (1.0%) Wyoming Municipal Power Agency Power Supply Refunding Series 1998 (Insured Revenue) 5.25% 01/01/2011............... 100,000 105,479 ----------- Total Municipal Bonds (Cost $10,132,174).......................... 10,386,858 ----------- TAX EXEMPT MONEY MARKET INVESTMENT (1.1%) SEI Tax Exempt Trust (Cost $123,692)........ 123,692 123,692 ----------- TOTAL INVESTMENTS (98.7%) (Cost $10,255,866).......................... 10,510,550 OTHER ASSETS LESS LIABILITIES (1.3%)......... 134,666 ----------- NET ASSETS (100.0%).......................... $10,645,216 ===========
COLUMBIA OREGON MUNICIPAL BOND FUND JUNE 30, 2001 (UNAUDITED) PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- GENERAL OBLIGATION BONDS (34.1%) STATE OF OREGON GENERAL OBLIGATION (4.4%) Board of Higher Education Deferred Interest Series A 0.00% 08/01/2014.......................... $ 490,000 $ 254,041 Board of Higher Education Refunding Series B 6.25% 10/15/2012........... 740,000 759,462 Elderly & Disabled Housing Refunding Series B 6.25% 08/01/2013........... 1,000,000 1,040,360 Pollution Control Series C 5.62% 06/01/2013.......................... 160,000 161,875 Pollution Control Series C 5.90% 06/01/2014.......................... 885,000 901,222 Veteran's Welfare Series 80A 5.70% 10/01/2032.......................... 5,610,000 5,785,425
See Accompanying Notes to Financial Statements 76 78 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- Veteran's Welfare 9.00% 04/01/2004.... $ 280,000 $ 319,547 8.25% 07/01/2005.................... 545,000 635,955 7.25% 01/01/2007.................... 1,530,000 1,769,323 9.20% 04/01/2007.................... 2,390,000 3,004,445 8.25% 07/01/2007.................... 540,000 657,261 7.30% 01/01/2008.................... 445,000 522,363 8.00% 01/01/2008.................... 1,275,000 1,545,287 7.30% 07/01/2008.................... 1,170,000 1,388,579 8.00% 07/01/2008.................... 580,000 711,173 9.20% 10/01/2008.................... 285,000 372,561 5.85% 10/01/2015.................... 855,000 892,996 -------------- 20,721,875 -------------- GENERAL OBLIGATION (14.4%) Aurora 5.60% 06/01/2024............... 1,205,000 1,173,080 Clackamas & Washington Counties School District #3JT West Linn/ Wilsonville 5.875% 10/01/2009................... 2,550,000 2,631,651 Clackamas County School District #086 6.00% 06/15/2016.................... 2,350,000 2,555,461 Clackamas County School District #7J Lake Oswego Series A 5.70% 06/15/2010.......................... 2,735,000 2,836,687 Clackamas County School District #007J Lake Oswego 5.375% 06/01/2015....... 2,450,000 2,541,189 Clackamas County School District #108 5.375% 06/15/2015................... 1,055,000 1,097,780 Coos Bay 4.90% 09/01/2007............. 3,190,000 3,326,979 Deschutes County Administrative School District #1 Bend/LaPine 0.00% 02/01/2002.......................... 1,445,000 1,420,825 Douglas County School District #4 Roseburg 4.90% 12/15/2001........... 415,000 429,069 5.00% 12/15/2012.................... 500,000 515,705 5.15% 12/15/2014.................... 540,000 555,179 Eugene Public Safety Facilities 5.50% 06/01/2010.......................... 850,000 891,667 5.625% 06/01/2013................... 1,295,000 1,347,564 Jackson County School District #549C Medford 5.375% 06/01/2012........... 1,200,000 1,228,968 Jackson County School District #009 Eagle Point 5.625% 06/15/2001....... 1,920,000 2,035,392 Lane County School District #4J Eugene 0.00% 01/01/2005.................... 1,395,000 1,216,635
PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- Lane County School District #4J Eugene Refunding Series A 0.00% 07/01/2005.......................... $2,325,000 $ 1,992,246 Metro Washington Park Zoo Series A 5.30% 01/15/2011.................... 1,000,000 1,041,980 Multnomah County Refunding 4.30% 10/01/2011.......................... 1,110,000 1,092,284 Multnomah County School District #7 Reynolds 5.25% 06/01/2011........... 1,500,000 1,549,755 Multnomah/Clackamas Counties School District #10JT Gresham 5.25% 06/01/2017.......................... 1,620,000 1,630,417 Port of Portland Series A 0.00% 03/01/2007.................... 3,010,000 2,371,730 Portland Community College District 0.00% 07/01/2007.................... 2,025,000 1,573,445 Portland Community College District Series A 5.375% 06/01/2016.......... 2,705,000 2,788,503 5.375% 06/01/2017................... 2,540,000 2,606,396 Portland Ltd. Tax Series B 0.00% 06/01/2020.................... 1,000,000 358,590 0.00% 06/01/2012.................... 1,750,000 1,027,810 0.00% 06/01/2013.................... 1,500,000 829,380 0.00% 06/01/2014.................... 1,000,000 520,170 0.00% 06/01/2016.................... 1,500,000 687,930 0.00% 06/01/2018.................... 4,000,000 1,620,000 0.00% 06/01/2019.................... 4,000,000 1,527,640 Portland Public Improvements Series A 5.75% 06/01/2014.................... 1,225,000 1,263,183 Washington & Clackamas Counties School District #23J Tigard 0.00% 06/15/2018.......................... 2,700,000 1,078,650 Washington & Clackamas Counties School District #23J Tigard Deferred Interest Series A 0.00% 06/01/2010.......................... 1,520,000 997,865 Washington & Clackamas Counties School District #23J Tigard Refunding 5.40% 01/01/2010.......................... 1,720,000 1,775,625 Washington County 5.50% 06/01/2016.... 2,785,000 2,906,844 Washington County Deferred Interest Operations Yard Facilities Obligation 0.00% 06/01/2003......... 1,000,000 920,400
See Accompanying Notes to Financial Statements 77 79 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
COLUMBIA OREGON MUNICIPAL BOND FUND (CONT.) JUNE 30, 2001 (UNAUDITED) PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- Washington County Refunding 6.20% 12/01/2007.......................... $1,500,000 $ 1,516,200 Washington County Refunding Criminal Justice Facilities 5.00% 12/01/2010.......................... 1,400,000 1,450,974 Washington County School District #48J Beaverton Series B 6.15% 06/01/2008.......................... 1,010,000 1,020,625 Washington County School District #48J Beaverton 5.125% 01/01/2017......... 1,820,000 1,833,359 5.125% 01/01/2018................... 2,260,000 2,264,746 Washington, Multnomah & Yamhill Counties School District #1J 5.25% 06/01/2014.......................... 500,000 514,340 5.00% 11/01/2013.................... 1,375,000 1,415,342 -------------- 67,980,260 -------------- INSURED GENERAL OBLIGATION (15.3%) Central Oregon Community 5.80% 06/01/2007.......................... 760,000 799,490 Chemeketa Community College District Series B 5.60% 06/01/2014........... 1,180,000 1,231,802 Clackamas County Community College 5.25% 06/15/2015.................... 1,500,000 1,546,170 Clackamas County School District #12 North Clackamas 5.25% 06/01/2011.... 1,000,000 1,054,260 4.80% 06/01/2018.................... 3,400,000 3,266,040 5.25% 06/01/2015.................... 2,750,000 2,819,768 Clatsop County Administrative School District #10 5.875% 07/01/2012...... 630,000 642,014 Columbia County School District #502 Deferred Interest 0.00% 06/01/2012.......................... 1,530,000 899,564 0.00% 06/01/2013.................... 1,685,000 938,208 0.00% 06/01/2014.................... 1,025,000 535,880 0.00% 06/01/2007.................... 260,000 202,730 Deschutes & Jefferson Counties School District #2J Redmond Refunding 5.60% 06/01/2009.................... 1,000,000 1,044,940 Hood River County School District 5.65% 06/01/2008.................... 1,020,000 1,065,982 Josephine County School District #7 Grants Pass 5.70% 06/01/2013........ 2,000,000 2,107,940
PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- Lane & Douglas Counties School District #97J 5.30% 06/15/2015...... $1,155,000 $ 1,185,919 Lane County School District #19 Springfield Refunding 6.00% 10/15/2012.......................... 1,740,000 1,974,813 6.00% 10/15/2014.................... 1,310,000 1,482,003 Lane County School District #52 Bethel 6.25% 12/01/2007.................... 580,000 643,313 6.40% 12/01/2009.................... 750,000 828,082 Lincoln County School District 5.60% 06/15/2010.......................... 3,480,000 3,772,424 6.00% 06/15/2007.................... 1,855,000 2,051,315 6.00% 06/15/2008.................... 1,450,000 1,615,039 Linn Benton Community College 0.00% 06/15/2013.......................... 1,000,000 554,440 0.00% 06/15/2015.................... 1,000,000 488,860 Linn County Community School District #9 Lebanon 6.125% 06/15/2014........ 1,410,000 1,569,894 0.00% 06/15/2015.................... 710,000 630,444 0.00% 06/15/2021.................... 1,000,000 879,000 Marion County Certificates of Participation Courthouse Square Project Series A 4.40% 06/01/2010... 430,000 431,729 Marion County School District #103C Woodburn Series B 0.00% 11/01/2006.. 2,000,000 1,614,020 0.00% 11/01/2007.................... 2,000,000 1,532,460 0.00% 11/01/2009.................... 2,500,000 1,718,900 0.00% 11/01/2011.................... 2,210,000 1,362,642 Multnomah County School District #3 Parkrose 5.50% 12/01/2010........... 895,000 930,487 5.50% 12/01/2011.................... 1,000,000 1,038,300 5.70% 12/01/2008.................... 1,330,000 1,400,450 5.70% 12/01/2009.................... 1,970,000 2,066,333 Multnomah County Sd #7 Reynolds 5.00% 06/15/2018.......................... 1,000,000 988,580 Multnomah/Clackamas Counties Centennial School District #28-302 5.375% 06/15/2016................... 2,055,000 2,123,575 5.375% 06/15/2017................... 2,280,000 2,341,628 5.375% 06/15/2018................... 2,490,000 2,547,519
See Accompanying Notes to Financial Statements 78 80 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- Northern Oregon Corrections 5.25% 09/15/2012.......................... $1,000,000 $ 1,037,740 5.30% 09/15/2013.................... 1,000,000 1,032,230 Salem/Keizer School District #24J 5.00% 06/01/2015.................... 1,000,000 1,005,190 State Department Administrative Services Certificate of Participation Refunding Series A 4.50% 05/01/2012.................... 1,020,000 1,016,940 5.00% 05/01/2013.................... 4,240,000 4,334,637 5.00% 05/01/2014.................... 1,000,000 1,016,530 5.00% 05/01/2024.................... 1,000,000 969,530 Tillamook County 5.70% 01/15/2016..... 700,000 724,577 Umpqua Community College District 4.70% 06/01/2014.................... 525,000 519,314 Washington County School District #088J Sherwood Unrefunded 6.10% 06/01/2012.......................... 185,000 196,505 Washington County School District #088J Sherwood 4.50% 06/15/2014..... 350,000 338,859 Washington County School District #15 Forest Grove 5.25% 06/01/2010....... 1,000,000 1,066,860 5.25% 08/01/2010.................... 1,150,000 1,210,950 Washington County School District #48J Beaverton 5.10% 06/01/2012.......... 500,000 517,105 Yamhill County School District #40 5.35% 06/01/2010.................... 500,000 525,945 6.00% 06/01/2009.................... 500,000 559,365 -------------- 71,999,234 -------------- Total General Obligation Bonds (Cost $156,273,851)..................... 160,701,369 -------------- REVENUE BONDS (57.4%) OREGON REVENUE (35.0%) Albany Hospital Facility Authority Mennonite Home 5.625% 10/01/2017.... 635,000 556,685 Bend Municipal Airport PJ Series B (AMT) 5.375% 06/01/2013............. 150,000 154,131 Benton County Hospital Facilities Authority Refunding Samaritan Health Services Project 4.30% 10/01/2006... 230,000 229,197 4.40% 10/01/2007.................... 220,000 218,843 4.80% 10/01/2011.................... 245,000 244,733 5.20% 10/01/2017.................... 2,255,000 2,174,767
PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- Clackamas County Hospital Facility Authority Willamette View, Inc. PJ Series A 6.85% 11/01/2015........... $1,580,000 $ 1,642,299 Clackamas County Hospital Facility Authority Legacy Health System 5.375% 02/15/2012................... 3,135,000 3,263,974 5.50% 02/15/2013.................... 5,350,000 5,585,186 5.50% 02/15/2014.................... 2,385,000 2,474,557 5.00% 02/15/2015.................... 1,400,000 1,390,956 5.00% 02/15/2016.................... 1,000,000 989,260 Clackamas County Hospital Facility Authority Refunding Odd Fellows Home Series A 5.50% 09/15/2008........... 1,540,000 1,461,321 5.70% 09/15/2013.................... 600,000 573,528 5.875% 09/15/2021................... 3,015,000 2,588,106 Clackamas County Hospital Facility Authority Robison Jewish Home Project 6.25% 10/01/2021............ 1,630,000 1,550,277 Clackamas County Hospital Facility Authority Refunding Willamette View, Inc. Project 6.00% 11/01/2008....... 670,000 664,345 Clackamas County Hospital Facility Authority GNMA Collateral Jennings Lodge 7.50% 10/20/2031.............. 1,030,000 1,044,317 Clackamas County Hospital Facility Authority Willamette Falls Hospital Project 5.75% 04/01/2014............ 1,005,000 984,609 6.00% 04/01/2019.................... 1,750,000 1,715,473 Clackamas County Hospital Facility Kaiser Permanente Series A 5.375% 04/01/2014.......................... 7,085,000 7,192,975 Clackamas County Hospital Facility Refunding Kaiser Permanente Series A 6.50% 04/01/2011.................... 1,000,000 1,023,690
See Accompanying Notes to Financial Statements 79 81 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
COLUMBIA OREGON MUNICIPAL BOND FUND (CONT.) JUNE 30, 2001 (UNAUDITED) PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- Clackamas County Housing Authority Multifamily Housing Easton Ridge Series A 5.80% 12/01/2016........... $2,255,000 $ 2,320,057 Deschutes County Hospital Facility Authority 5.75% 01/01/2009.......... 1,670,000 1,733,460 Deschutes Valley Water District 5.875% 09/01/2005.......................... 3,670,000 3,914,642 Eugene Airport Refunding (AMT) 5.50% 05/01/2005.......................... 260,000 270,873 5.65% 05/01/2006.................... 240,000 251,952 5.65% 05/01/2007.................... 555,000 583,449 5.70% 05/01/2008.................... 515,000 542,238 Eugene Electric Utility Refunding 5.80% 08/01/2008.................... 1,435,000 1,464,374 5.80% 08/01/2009.................... 1,300,000 1,324,830 6.00% 08/01/2011.................... 1,375,000 1,403,820 Gresham Sewer 5.35% 06/01/2006........ 860,000 888,896 Gresham Stormwater 6.10% 10/01/2009.................... 1,115,000 1,176,370 Hillsboro Hospital Facility Authority Tuality Healthcare 5.75% 10/01/2012.......................... 6,060,000 6,014,550 Lebanon Urban Renewal Agency 5.625% 06/01/2019.......................... 1,000,000 989,240 Lebanon Wastewater Refunding 5.75% 06/01/2011.......................... 1,225,000 1,274,429 Multnomah County Educational Facilities University of Portland Project 5.70% 04/01/2015............ 1,000,000 1,028,460 Myrtle Point Water 6.00% 12/01/2020... 510,000 511,148 North Clackamas Parks & Recreation District Facilities 5.70% 04/01/2013.......................... 2,920,000 3,162,126 Northern Wasco County People's Utility District Electric 0.00% 02/01/2006.......................... 610,000 491,874 0.00% 02/01/2007.................... 585,000 439,317 0.00% 02/01/2008.................... 610,000 425,811 0.00% 02/01/2011.................... 500,000 281,590 Oregon Health, Housing, Educational & Cultural Facilities Authority Linfield College Project Series A 5.50% 10/01/2018.................... 1,000,000 966,230 4.55% 10/01/2008.................... 525,000 517,624 4.65% 10/01/2009.................... 555,000 543,478
PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- Oregon Health, Housing, Educational & Cultural Facilities Authority Goodwill Industries Lane County Series A 6.65% 11/15/2022........... $4,140,000 $ 4,009,921 Oregon Health, Housing, Educational & Cultural Facilities Authority Reed College Project Series A 5.30% 07/01/2011.......................... 500,000 519,180 Oregon Health, Housing, Educational & Cultural Facilities Authority/Aquarium 4.75% 10/01/2008.......................... 1,550,000 1,394,628 4.90% 10/01/2009.................... 670,000 600,307 Oregon Housing & Community Services Department Mortgage Single Family Program Series A (AMT) 6.20% 07/01/2027.......................... 3,700,000 3,800,677 Oregon Housing & Community Services Department Single Family Mortgage Program Series D 6.70% 07/01/2013... 1,000,000 1,026,830 Oregon Housing & Community Services Department Housing Finance Assisted Insured Multi Unit B 6.80% 07/01/2013.......................... 8,360,000 8,585,469 Oregon Housing & Community Services Department Mortgage Single Family Program Series F (AMT) 5.65% 07/01/2028.......................... 1,225,000 1,232,019 Oregon Housing & Community Services Department Mortgage Single Family Series F MBIA IBC (AMT) 5.65% 07/01/2028.......................... 915,000 921,423 Oregon Housing & Community Services Department Mortgage Single Family Project Series E 5.375% 07/01/2021.......................... 3,975,000 4,025,562 Oregon Housing & Community Services Department Mortgage Single Family Program Series A 4.85% 07/01/2010... 310,000 318,872 Oregon Housing & Community Services Mountain Shadows Apts. B1 6.25% 12/01/2005.......................... 4,000,000 4,014,960
See Accompanying Notes to Financial Statements 80 82 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- Oregon Housing & Community Services Department Single Family Mortgage Program Series L (AMT) 5.90% 07/01/2031.......................... $4,220,000 $ 4,270,471 Oregon Housing Financial 5.80% 07/01/2009.......................... 315,000 316,710 Oregon State Health, Housing, Educational & Cultural Facilities Authority St. Anthony Village Housing Series A (AMT) 7.25% 06/01/2028.......................... 1,500,000 1,444,605 Oregon State Housing & Community Services Department Multifamily Housing Series B (AMT) 6.00% 07/01/2031.......................... 6,935,000 7,120,650 Oregon State Housing & Community Services Department Single Family Mortgage Program Series L 6.05% 07/01/2020.......................... 2,550,000 2,661,435 Oregon State Housing & Community Services Community Services Department Mortgage Series M (AMT) 5.80% 07/01/2012.................... 840,000 885,503 Oregon State Housing & Community Services Single Family Mortgage PG Series E 5.80% 07/01/2014........... 1,080,000 1,139,929 Oregon State Housing & Community Services Dept. Mortgage Single Family Series E 5.70% 07/01/2012.... 1,210,000 1,286,061 6.00% 07/01/2020.................... 3,000,000 3,123,330 Port Morrow 6.70% 06/01/2020.......... 2,000,000 1,993,080 Port of St. Helens 5.60% 08/01/2014.................... 315,000 313,907 5.75% 08/01/2019.................... 425,000 423,445 Port of St. Helens Pollution Control Portland General Electric Co. Series A 4.80% 04/01/2010.................... 5,195,000 5,090,788 Port of St. Helens Pollution Control Portland General Electric Co. Series B 4.80% 06/01/2010.................... 3,500,000 3,428,950 Port Umpqua Pollution Control Refunding International Paper Co. PJS A 5.05% 06/01/2009.................... 300,000 300,789 Portland Housing Authority Multifamily Housing Senior Lien Civic Apartments Series A 5.60% 01/01/2018.................... 1,240,000 1,271,818
PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- Portland Housing Authority Refunding Pooled Housing Series A 5.00% 01/01/2019.................... $3,600,000 $ 3,454,056 4.50% 01/01/2009.................... 660,000 668,791 Portland Hydroelectric Power 6.80% 10/01/2004.................... 465,000 466,070 Portland Parking Refunding 6.375% 10/01/2012................... 1,700,000 1,707,854 Powell Valley Water District 6.00% 02/01/2015.................... 620,000 631,495 Prineville Sewer First Lien 6.50% 07/01/2004.................... 500,000 531,985 Redmond Urban Renewal Agency Downtown Area B 5.65% 06/01/2013.................... 720,000 722,261 5.85% 06/01/2019.................... 785,000 787,426 Redmond Urban Renewal Agency Refunding South Airport Industrial Area A 5.70% 06/01/2019.................... 650,000 646,893 Reedsport Water 7.00% 10/01/2014.................... 520,000 548,938 Salem Hospital Facility Authority 5.00% 08/15/2018.................... 2,000,000 1,943,300 5.25% 08/15/2014.................... 2,900,000 2,962,176 Salem Hospital Facility Authority Capital Manor, Inc. 7.50% 12/01/2024.................... 905,000 929,679 Sheridan Water 6.20% 05/01/2015.................... 625,000 648,225 6.45% 05/01/2020.................... 520,000 536,942 Sheridan Water Refunding 5.35% 04/01/2018.................... 300,000 291,519 South Fork Water Board First Lien 5.45% 02/01/2014.................... 1,300,000 1,313,507 Umatilla County Hospital Facility Authority Catholic Health Initiatives Series A 6.00% 12/01/2030.................... 4,825,000 5,043,814 5.75% 12/01/2020.................... 530,000 548,497 Veneta Urban Renewal Agency 5.375% 02/15/2016................... 500,000 490,660 5.625% 02/15/2021................... 1,100,000 1,079,969
See Accompanying Notes to Financial Statements 81 83 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
COLUMBIA OREGON MUNICIPAL BOND FUND (CONT.) JUNE 30, 2001 (UNAUDITED) PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- Washington County Housing Authority Authority Affordable Housing 6.00% 07/01/2020.................... $2,000,000 $ 1,942,680 Washington County Housing Authority Multifamily Bethany Meadows Project (AMT) 6.25% 08/01/2010.............. 850,000 850,459 -------------- 164,512,582 -------------- INSURED REVENUE (22.4%) Clackamas County Health Facility Authority Refunding Adventist Health A 6.35% 03/01/2009.................. 1,525,000 1,579,122 Emerald Peoples Utilities District 7.20% 11/01/2006.................... 630,000 731,865 7.35% 11/01/2010.................... 2,160,000 2,656,843 7.35% 11/01/2011.................... 2,000,000 2,488,240 7.35% 11/01/2012.................... 2,490,000 3,126,021 7.35% 11/01/2013.................... 2,675,000 3,337,357 Eugene Electric Utilities System Series B 5.00% 08/01/2023.................... 525,000 509,964 4.55% 08/01/2010.................... 600,000 601,020 4.65% 08/01/2011.................... 375,000 375,660 5.00% 08/01/2018.................... 1,000,000 1,000,460 Marion County Certificates of Participation Courthouse Square Project Series A 4.60% 06/01/2012.................... 355,000 356,413 Medford Hospital Facilities Authority Asante Health System Series A 5.25% 08/15/2008.......................... 1,645,000 1,744,983 5.25% 08/15/2010.................... 1,500,000 1,582,140 5.25% 08/15/2011.................... 800,000 838,800 Multnomah County EDL Facilities Refunding University of Portland Project 5.75% 04/01/2010............ 1,000,000 1,091,680 5.00% 04/01/2011.................... 1,150,000 1,192,561 Ontario Catholic Health Holy Rosary Medical Center 5.50% 11/15/2012..... 1,500,000 1,574,280 Oregon Department of Administrative Services Certificates Participation Series A 5.30% 05/01/2008.................... 750,000 800,332 6.00% 05/01/2012.................... 2,695,000 3,037,022 5.70% 05/01/2015.................... 1,000,000 1,042,890 6.25% 05/01/2018.................... 1,000,000 1,147,120 5.75% 05/01/2020.................... 1,500,000 1,584,480
PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- Oregon Department of Administrative Services Certificates Participation Series B 5.50% 11/01/2011.................... $1,635,000 $ 1,737,531 5.00% 11/01/2013.................... 1,000,000 1,018,950 Oregon Department of Administrative Services Certificates Participation Series C 5.50% 05/01/2011.................... 2,000,000 2,116,280 5.75% 05/01/2017.................... 2,000,000 2,104,780 Oregon Department of General Services Certificates of Participation Series C 5.80% 03/01/2015.................... 840,000 858,522 Oregon Health Housing, Educational & Cultural Facilities Authority Reed College Project Series A 5.10% 07/01/2010.................... 900,000 950,706 Oregon Health Sciences University Capital Appreciation Series A 0.00% 07/01/2021.................... 12,285,000 4,097,416 Oregon Health Sciences University Series A 0.00% 07/01/2009........... 1,530,000 1,067,818 0.00% 07/01/2012.................... 1,315,000 774,180 0.00% 07/01/2014.................... 2,495,000 1,298,947 0.00% 07/01/2015.................... 4,325,000 2,115,271 Oregon Health, Housing, Educational & Cultural Facilities Authority Lewis & Clark College 6.00% 10/01/2013.................... 965,000 1,028,729 Oregon Housing & Community Services Department Single Family Mortgage Project Series J (AMT) 5.75% 07/01/2029.................... 8,985,000 9,070,807 Oregon State Department Administrative Services Lottery Education Project 5.25% 04/01/2013.................... 1,500,000 1,565,325
See Accompanying Notes to Financial Statements 82 84 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- Oregon State Department Administrative Services Lottery Education Projects Series A 5.25% 04/01/2011.................... $4,000,000 $ 4,236,200 Oregon State Economic Development Dove Lewis 24 Hour Emergency Animal Hospital 7.00% 12/01/2019.................... 1,510,000 1,548,762 Port of Portland Airport Refunding Portland International Airport Series 12B 5.25% 07/01/2012.................... 1,000,000 1,049,740 Port of Portland International Airport Series A 5.50% 07/01/2024.................... 8,000,000 8,154,800 Portland Arena Gas Tax 0.00% 06/01/2016.................... 1,100,000 462,539 0.00% 06/01/2017.................... 2,320,000 910,484 Portland Gas Tax Series A 5.80% 06/01/2016.................... 1,625,000 1,708,379 Portland Sewer System Series A 4.50% 06/01/2015.................... 1,510,000 1,449,132 4.50% 06/01/2018.................... 3,030,000 2,799,084 Salem Water & Sewer 5.30% 06/01/2015.................... 1,500,000 1,547,490 Tri County Metropolitan Transportation District Series 1 5.40% 06/01/2019.................... 4,200,000 4,269,972 Tualatin Hills Park & Recreation District 5.75% 03/01/2014.................... 990,000 1,087,010 Washington County Housing Authority Multifamily Tualatin Meadows (AMT) 5.90% 11/01/2018.................... 1,000,000 1,037,140 Washington County Unified Sewer Agency 5.50% 10/01/2016.................... 1,250,000 1,288,812 Washington County Unified Sewer Agency Series A 0.00% 10/01/2003.................... 1,000,000 927,500 0.00% 10/01/2005.................... 5,230,000 4,435,458 0.00% 10/01/2007.................... 4,835,000 3,717,680 Western Lane Hospital District Facility Authority Refunding Sisters St. Joseph Peace 5.625% 08/01/2007................... 2,460,000 2,626,099 -------------- 105,460,796 -------------- Total Revenue Bonds (Cost $263,352,002)..................... 269,973,378 --------------
PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- PRE-REFUNDED BONDS (2.1%) Oregon City Sewer 6.50% 10/01/2007.................... $ 500,000 $ 542,365 Portland Recreational Facilities Improvements Series A 5.75% 06/01/2012.................... 1,370,000 1,475,860 5.75% 06/01/2013.................... 1,345,000 1,448,928 5.75% 06/01/2015.................... 1,155,000 1,244,247 Portland Recreational Facilities Improvements Series B 5.75% 06/01/2014.................... 1,750,000 1,885,222 5.75% 06/01/2015.................... 2,955,000 3,183,333 -------------- Total Pre-Refunded Bonds (Cost $9,036,351)....................... 9,779,955 -------------- OTHER BONDS (3.4%) Grants Pass Urban Renewal Agency Tax Increment 6.125% 08/01/2012................... 755,000 755,717 Hood River Urban Renewal Agency 6.25% 12/15/2011.................... 1,250,000 1,340,888 Lebanon Urban Renewal 6.00% 06/01/2020.................... 1,580,000 1,583,318 Lebanon Special Obligation Refunding Lease Water 5.40% 10/01/2013.................... 755,000 762,293 Lebanon Urban Renewal Agency 5.75% 06/01/2015.................... 1,120,000 1,123,954 Medford Urban Renewal Agency 5.875% 09/01/2010................... 500,000 527,365 Multnomah County Certificate of Participation 4.55% 08/01/2010.................... 1,000,000 1,009,500 Newberg Certificates of Participation 6.20% 12/01/2001.................... 410,000 414,879 Portland Airport Way Urban Renewal & Redevelopment Tax Increment Series C 5.90% 06/01/2006.................... 860,000 895,036 Portland Urban Renewal & Redevelopment Convention Center Series A 5.75% 06/15/2017.................... 1,500,000 1,595,070 5.75% 06/15/2018.................... 2,050,000 2,173,287 Portland Urban Renewal & Redevelopment Unrefunded Balance Series L 6.40% 06/01/2008.................... 1,695,000 1,734,849 Seaside Urban Renewal Agency Greater Seaside Urban Renewal 5.25% 06/01/2015.................... 1,000,000 973,670
See Accompanying Notes to Financial Statements 83 85 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
COLUMBIA OREGON MUNICIPAL BOND FUND (CONT.) JUNE 30, 2001 (UNAUDITED) PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- Wilsonville Limited Tax Improvement 5.00% 12/01/2020.................... $1,025,000 $ 1,027,737 -------------- Total Other Bonds (Cost $15,510,694)...................... 15,917,563 -------------- U.S. TERRITORIES (1.1%) Guam Housing Corporation Single Family Mortgage Backed Securities Series A (AMT) 5.75% 09/01/2031.................... 1,500,000 1,539,105 Puerto Rico Housing Finance Corp. Multifamily Mortgage Portfolio A1 7.50% 04/01/2022.................... 1,365,000 1,383,905 Puerto Rico Housing Finance Corp. Single Family Mortgage Portfolio 1 Series C 6.75% 10/15/2013.................... 710,000 726,628 Virgin Islands Public Finance Authority Unrefunded Balance Series A 7.30% 10/01/2018.................... 1,185,000 1,478,667 -------------- Total U.S. Territories Bonds (Cost $4,885,869)....................... 5,128,305 -------------- TAX EXEMPT MONEY MARKET INVESTMENT (0.7%) SEI Tax Exempt Trust (Cost $3,495,718)..................... 3,495,718 3,495,718 -------------- TOTAL INVESTMENTS (98.8%) (Cost $452,554,485)..................... 464,996,288 OTHER ASSETS LESS LIABILITIES (1.2%)..... 5,688,923 -------------- NET ASSETS (100.0%)...................... $ 470,685,211 ==============
COLUMBIA HIGH YIELD FUND JUNE 30, 2001 (UNAUDITED) PRINCIPAL AMOUNT VALUE ---------------------------------------------------------------------- CORPORATE NOTES & BONDS (90.2%) AEROSPACE (0.4%) Alliant Techsystems, Inc. (144A) Senior Subordinated Notes 8.50% 05/15/2011.................... $ 750,000 $ 757,500 ------------ AUTOMOTIVE/AUTO PARTS (2.9%) American Axle & Manufacturing, Inc. Senior Subordinated Notes 9.75% 03/01/2009.................... 3,450,000 3,450,000
PRINCIPAL AMOUNT VALUE ---------------------------------------------------------------------- Lear Corp. Senior Notes, Series B 7.96% 05/15/2005.................... $ 1,750,000 $ 1,781,302 ------------ 5,231,302 ------------ BROADCASTING (0.8%) Heritage Media Corp. Senior Subordinated Notes 8.75% 02/15/2006.................... 1,500,000 1,500,000 ------------ CABLE TV (9.2%) Adelphia Communications Corp. Senior Discount Notes 0.00% 03/15/2003.................... 50,000 40,750 Adelphia Communications Corp. Senior Notes, Series B 10.50% 07/15/2004................... 2,500,000 2,562,500 Adelphia Communications Corp. Senior Notes 9.50% 03/01/2005.................... 500,000 485,000 Charter Communications Holdings L.L.C./Charter Communications Holdings Capital Corp. Senior Notes 10.75% 10/01/2009................... 3,000,000 3,112,500 11.125% 01/15/2011.................. 500,000 525,000 CSC Holdings, Inc. Senior Notes 7.875% 12/15/2007................... 3,250,000 3,206,158 CSC Holdings, Inc. Senior Debentures, Series B 8.125% 08/15/2009................... 475,000 470,188 Mediacom L.L.C./Mediacom Capital Corp. (144A) Senior Notes 9.50% 01/15/2013.................... 3,000,000 2,835,000 Rogers Cablesystems Ltd. Notes 9.625% 08/01/2002................... 490,000 502,250 Rogers Cablesystems Ltd. Senior Secured Second Priority Debentures 10.00% 12/01/2007................... 500,000 535,000 Rogers Communications, Inc. Senior Notes 8.875% 07/15/2007................... 1,000,000 990,000 Shaw Communications, Inc. Senior Notes 8.25% 04/11/2010.................... 1,000,000 1,050,710 ------------ 16,315,056 ------------
See Accompanying Notes to Financial Statements 84 86 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE ---------------------------------------------------------------------- CONSUMER PRODUCTS (1.9%) The Scotts Co. Senior Subordinated Notes 8.625% 01/15/2009................... $ 3,225,000 $ 3,285,469 ------------ CONTAINERS (2.9%) Ball Corp. Senior Subordinated Notes 8.25% 08/01/2008.................... 1,500,000 1,515,000 Silgan Holdings, Inc. Senior Subordinated Debentures 9.00% 06/01/2009.................... 3,575,000 3,557,125 ------------ 5,072,125 ------------ DIVERSIFIED MEDIA (4.7%) Fox/Liberty Networks L.L.C. Senior Notes 8.875% 08/15/2007................... 2,750,000 2,873,750 Lamar Media Corp. Senior Subordinated Notes 9.25% 08/15/2007.................... 1,000,000 1,045,000 9.625% 12/01/2006................... 2,250,000 2,362,500 Outdoor Systems, Inc. Senior Subordinated Notes 8.875% 06/15/2007................... 750,000 802,500 9.375% 10/15/2006................... 1,285,000 1,340,833 ------------ 8,424,583 ------------ ELECTRIC (4.3%) AES Corp. Senior Subordinated Notes 10.25% 07/15/2006................... 1,800,000 1,809,000 AES Corp. Notes 8.75% 06/15/2008.................... 2,000,000 1,955,000 Calpine Corp. Senior Notes 7.625% 04/15/2006................... 1,500,000 1,450,995 8.75% 07/15/2007.................... 2,500,000 2,477,575 ------------ 7,692,570 ------------ ENERGY (9.7%) El Paso Energy Partners L.P. (144A) Senior Subordinated Notes 8.50% 06/01/2011.................... 3,750,000 3,750,000 Gulf Canada Resources Ltd. Senior Subordinated Debentures 9.625% 07/01/2005................... 1,350,000 1,388,812 Key Energy Services, Inc. (144A) Senior Notes 8.375% 03/01/2008................... 2,500,000 2,518,150
PRINCIPAL AMOUNT VALUE ---------------------------------------------------------------------- Newpark Resources, Inc. Senior Subordinated Notes, Series B 8.625% 12/15/2007................... $ 3,000,000 $ 2,970,000 Pride International, Inc. Senior Notes 9.375% 05/01/2007................... 1,500,000 1,578,750 10.00% 06/01/2009................... 1,000,000 1,100,000 Vintage Petroleum, Inc. Senior Subordinated Notes 9.75% 06/30/2009.................... 3,700,000 4,014,500 ------------ 17,320,212 ------------ ENTERTAINMENT/FILM (1.9%) Six Flags, Inc. Senior Notes 9.75% 06/15/2007.................... 500,000 510,000 Six Flags, Inc. (144A) Senior Notes 9.50% 02/01/2009.................... 2,750,000 2,853,125 ------------ 3,363,125 ------------ ENVIRONMENTAL (2.2%) Allied Waste North America, Inc. Senior Subordinated Notes, Series B 10.00% 08/01/2009................... 3,750,000 3,853,125 ------------ GAMING (6.7%) Harrah's Operating, Inc. Senior Subordinated Notes 7.875% 12/15/2005................... 2,750,000 2,791,250 International Game Technology Senior Notes 7.875% 05/15/2004................... 1,000,000 1,010,000 Park Place Entertainment Corp. Senior Subordinated Notes 9.375% 02/15/2007................... 4,000,000 4,205,000 Station Casinos, Inc. Senior Subordinated Notes 9.75% 04/15/2007.................... 3,750,000 3,862,500 ------------ 11,868,750 ------------ HEALTH CARE (8.1%) AdvancePCS Senior Notes 8.50% 04/01/2008.................... 3,000,000 3,060,000 HCA - The Healthcare Co. Notes 6.91% 06/15/2005.................... 2,000,000 1,950,000 7.00% 07/01/2007.................... 1,000,000 960,000 Magellan Health Services, Inc. (144A) Senior Notes 9.375% 11/15/2007................... 1,500,000 1,524,375
See Accompanying Notes to Financial Statements 85 87 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
COLUMBIA HIGH YIELD FUND (CONT.) JUNE 30, 2001 (UNAUDITED) PRINCIPAL AMOUNT VALUE ---------------------------------------------------------------------- Omnicare, Inc. (144A) Senior Notes 8.125% 03/15/2011................... $ 1,500,000 $ 1,515,000 Select Medical Corp. (144A) Senior Subordinated Notes 9.50% 06/15/2009.................... 2,000,000 1,940,000 Tenet Healthcare Corp. Senior Notes 8.625% 12/01/2003 1,250,000 1,296,875 Tenet Healthcare Corp. Senior Subordinated Notes, Series B 8.125% 12/01/2008................... 1,250,000 1,289,063 Triad Hospitals, Inc. (144A) Senior Notes 8.75% 05/01/2009.................... 950,000 966,625 ------------ 14,501,938 ------------ HOMEBUILDERS/REAL ESTATE (4.4%) Health Care Property Investors, Inc. Notes 6.875% 06/08/2005................... 1,500,000 1,472,700 Simon Property Group, Inc. Notes 6.75% 02/09/2004.................... 2,700,000 2,710,422 Toll Corp. Senior Subordinated Notes 7.75% 09/15/2007.................... 1,500,000 1,441,875 8.00% 05/01/2009.................... 500,000 485,000 8.75% 11/15/2006.................... 1,750,000 1,763,125 ------------ 7,873,122 ------------ HOTELS (5.3%) Extended Stay America, Inc. (144A) Senior Subordinated Notes 9.875% 06/15/2011................... 3,500,000 3,465,000 HMH Properties, Inc. Senior Secured Notes, Series A 7.875% 08/01/2005................... 3,000,000 2,932,500 Meristar Hospital Corp. (144A) Senior Notes 9.00% 01/15/2008.................... 3,000,000 3,022,500 ------------ 9,420,000 ------------ MISCELLANEOUS (3.2%) United Rentals, Inc. Senior Subordinated Notes, Series B 8.80% 08/15/2008.................... 1,000,000 915,000 9.50% 06/01/2008.................... 1,950,000 1,847,625
PRINCIPAL AMOUNT VALUE ---------------------------------------------------------------------- United Rentals, Inc. Senior Notes, Series B 9.25% 01/15/2009.................... $ 1,000,000 $ 930,000 United Stationers Supply Co. Senior Subordinated Notes 8.375% 04/15/2008................... 2,000,000 1,980,000 ------------ 5,672,625 ------------ PAPER/FOREST PRODUCTS (2.8%) Buckeye Technologies, Inc. Senior Subordinated Notes 8.50% 12/15/2005.................... 1,500,000 1,488,750 Georgia-Pacific Corp. Notes 8.125% 05/15/2011................... 3,500,000 3,505,915 ------------ 4,994,665 ------------ PUBLISHING/PRINTING (2.2%) Primedia, Inc. Senior Notes 10.25% 06/01/2004................... 1,000,000 1,035,000 Primedia, Inc. Senior Notes, Series B 8.50% 02/01/2006.................... 3,000,000 2,865,000 ------------ 3,900,000 ------------ RESTAURANTS (2.1%) TRICON Global Restaurants, Inc. Senior Notes 7.45% 05/15/2005.................... 3,750,000 3,703,125 ------------ SERVICES (1.6%) Iron Mountain, Inc. Senior Subordinated Notes 10.125% 10/01/2006.................. 1,500,000 1,578,750 Pierce Leahy Corp. Senior Subordinated Notes 9.125% 07/15/2007................... 1,250,000 1,293,750 ------------ 2,872,500 ------------ SHIPPING (1.7%) Teekay Shipping Corp. (144A) Senior Notes 8.875% 07/15/2011................... 2,975,000 3,004,750 ------------ SOVEREIGN - OTHER (2.3%) United Mexican States Notes 9.875% 02/01/2010................... 3,750,000 4,102,500 ------------ SPECIALTY RETAILERS (0.6%) *Flooring America, Inc. Senior Subordinated Notes, Series B 12.75% 10/15/2002 869,500 43,475
See Accompanying Notes to Financial Statements 86 88 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE ---------------------------------------------------------------------- Zale Corp. Senior Notes, Series B 8.50% 10/01/2007.................... $ 1,110,000 $ 1,043,400 ------------ 1,086,875 ------------ SUPERMARKETS (2.0%) Winn-Dixie Stores, Inc. Senior Notes 8.875% 04/01/2008................... 3,500,000 3,535,000 ------------ TELECOMMUNICATIONS (6.3%) American Tower Corp. (144A) Senior Notes 9.375% 02/01/2009................... 2,500,000 2,337,500 Crown Castle International Corp. Senior Notes 10.75% 08/01/2011................... 3,000,000 2,880,000 Flag Ltd. Senior Notes 8.25% 01/30/2008.................... 1,750,000 1,365,000 Level 3 Communications, Inc. Senior Notes 11.00% 03/15/2008................... 1,500,000 652,500 McLeodUSA, Inc. Senior Notes 9.25% 07/15/2007.................... 500,000 280,000 11.375% 01/01/2009.................. 1,750,000 1,093,750 Nextel Communications, Inc. Senior Notes 9.375% 11/15/2009................... 2,500,000 1,975,000 Time Warner Telecom, Inc. Senior Notes 10.125% 02/01/2011.................. 750,000 671,250 ------------ 11,255,000 ------------ Total Corporate Notes & Bonds (Cost $163,102,283)..................... 160,605,917 ------------ REPURCHASE AGREEMENTS (7.7%) J.P. Morgan Securities, Inc. 3.94% Dated 06/29/2001, due 07/02/2001 in the amount of $9,135,683. Collateralized by U.S. Treasury Notes 7.25% due 08/15/2004 U.S. Treasury Bonds 5.375% to 15.75% due 08/15/2001 to 02/15/2031 U.S. Treasury Strips due 08/15/2001 to 08/15/2028............ 9,134,696 9,134,696
PRINCIPAL AMOUNT VALUE ---------------------------------------------------------------------- Merrill Lynch 3.95% dated 06/29/2001, due 07/02/2001 in the amount of $4,600,498. Collateralized by U.S. Treasury Strips 8.125% to 8.75% due 08/15/2012 to 05/15/2025............ $ 4,600,000 $ 4,600,000 ------------ Total Repurchase Agreements (Cost $13,734,696)...................... 13,734,696 ------------ TOTAL INVESTMENTS (97.9%) (Cost $176,836,979)..................... 174,340,613 OTHER ASSETS LESS LIABILITIES (2.1%)..... 3,777,415 ------------ NET ASSETS (100.0%)...................... $178,118,028 ============
* Flooring America, Inc., filed a bankruptcy petition for reorganization on June 15, 2000. Effective on that date, interest is not being accrued.
COLUMBIA DAILY INCOME COMPANY JUNE 30, 2001 (UNAUDITED) PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- U.S. GOVERNMENT SECURITIES (7.4%) Fannie Mae 5.40% 01/18/2002................... $25,000,000 $ 25,000,000 *Federal Home Loan Mortgage Corp. 3.77% 09/17/2001................... 20,000,000 19,997,216 *Sallie Mae 3.90% 08/08/2001................... 20,000,000 19,998,964 *Sallie Mae 3.95% 08/14/2001................... 25,000,000 25,000,996 -------------- Total U.S. Government Securities (Cost $89,997,176)..................... 89,997,176 -------------- COMMERCIAL PAPER (92.4%) Abbey National NA 5.18% 07/17/2001................... 12,000,000 11,970,647 5.18% 07/25/2001................... 17,000,000 16,938,847 3.75% 09/11/2001................... 10,000,000 9,923,958 American Express Credit Corp. 3.83% 09/27/2001................... 13,000,000 12,876,908 American General Finance Corp. 3.94% 08/03/2001................... 17,000,000 16,936,741 4.23% 08/16/2001................... 27,000,000 26,850,892 American Honda Finance Corp. 3.92% 07/13/2001................... 16,000,000 15,977,351 3.66% 08/17/2001................... 6,500,000 6,468,280 Anheuser Busch 4.63% 07/03/2001................... 25,000,000 24,990,354
See Accompanying Notes to Financial Statements 87 89 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
COLUMBIA DAILY INCOME COMPANY (CONT.) JUNE 30, 2001 (UNAUDITED) PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- Archer Daniels Midland Co. 4.56% 07/10/2001................... $22,000,000 $ 21,972,133 Bank of America Corp. 3.90% 07/18/2001................... 10,000,000 9,980,500 3.99% 08/09/2001................... 20,000,000 19,911,333 3.82% 08/15/2001................... 12,800,000 12,737,522 Bank One Corp. 4.18% 08/22/2001................... 19,250,000 19,131,538 4.15% 08/29/2001................... 19,000,000 18,868,583 Barclays U.S. Funding Corp. 3.57% 09/27/2001................... 15,000,000 14,867,612 3.57% 09/27/2001................... 8,000,000 7,929,393 3.67% 09/28/2001................... 15,000,000 14,862,375 Becton, Dickinson & Co. 4.15% 08/07/2001................... 15,000,000 14,934,292 4.15% 08/07/2001................... 7,902,000 7,867,385 3.88% 08/21/2001................... 21,000,000 20,882,307 Campbell Soup Co. 3.91% 08/23/2001................... 11,000,000 10,935,485 3.92% 09/18/2001................... 25,000,000 24,782,222 Caterpillar Financial Services Corp. 3.83% 07/23/2001................... 15,300,000 15,262,562 3.61% 09/19/2001................... 11,000,000 10,910,652 3.72% 09/25/2001................... 9,500,000 9,414,595 Chevron Transport Corp. 4.51% 07/16/2001................... 12,000,000 11,975,947 Chevron U.K. Investment plc 4.20% 07/24/2001................... 17,000,000 16,952,400 4.19% 08/17/2001................... 14,000,000 13,921,787 CIT Group, Inc. 4.16% 08/10/2001................... 15,000,000 14,928,933 3.75% 09/13/2001................... 16,000,000 15,875,000 3.74% 09/21/2001................... 12,000,000 11,896,527 Citicorp 3.81% 08/02/2001................... 13,200,000 13,153,899 3.63% 08/23/2001................... 10,700,000 10,641,738 Deutsche Bank Financial, Inc. 4.00% 07/12/2001................... 25,000,000 24,966,667 3.90% 08/24/2001................... 19,000,000 18,886,792 Dow Chemical Co. 4.18% 07/27/2001................... 14,000,000 13,956,110 3.84% 08/09/2001................... 13,000,000 12,944,533 Eastman Kodak Co. 4.72% 07/05/2001................... 15,000,000 14,990,167 4.23% 07/30/2001................... 12,000,000 11,957,700 3.93% 08/13/2001................... 15,000,000 14,927,950
PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- Ford Motor Credit Co. 4.64% 07/02/2001................... $16,000,000 $ 15,995,876 3.87% 08/02/2001................... 12,000,000 11,957,430 3.54% 10/26/2001................... 16,000,000 15,814,347 General Electric Capital Corp. 5.05% 07/13/2001................... 14,000,000 13,974,469 3.51% 10/23/2001................... 11,000,000 10,876,662 General Motors Acceptance Corp. 5.06% 07/12/2001................... 14,000,000 13,976,387 3.90% 07/26/2001................... 20,000,000 19,943,667 Gillette Co. 4.67% 07/06/2001................... 14,000,000 13,989,103 Goldman Sachs & Co. 4.00% 07/09/2001................... 12,500,000 12,487,500 4.24% 07/18/2001................... 11,000,000 10,976,680 3.78% 10/01/2001................... 13,000,000 12,873,055 Grainger, W.W., Inc. 4.05% 07/05/2001................... 10,600,000 10,594,037 Honeywell International, Inc. 4.15% 07/02/2001................... 15,867,000 15,863,342 3.72% 08/31/2001................... 10,000,000 9,935,933 Household Finance Corp. 4.68% 07/19/2001................... 15,000,000 14,962,950 4.63% 07/26/2001................... 5,000,000 4,983,281 3.76% 09/14/2001................... 12,000,000 11,904,747 International Lease Finance Corp. 3.73% 08/13/2001................... 6,000,000 5,972,647 3.60% 09/12/2001................... 18,000,000 17,866,800 J.P. Morgan Chase 3.90% 07/31/2001................... 15,000,000 14,949,625 3.89% 07/31/2001................... 9,500,000 9,468,178 3.94% 08/06/2001................... 15,000,000 14,939,258 John Deere Capital Corp. 3.94% 07/23/2001................... 10,800,000 10,772,814 Lehman Brothers Holdings 4.60% 07/20/2001................... 21,000,000 20,946,333 McGraw-Hill Cos 3.78% 08/10/2001................... 13,000,000 12,944,035 3.74% 09/10/2001................... 23,000,000 22,827,960 Metlife Funding, Inc. 3.57% 09/20/2001................... 13,000,000 12,894,288 Morgan Stanley Dean Witter & Co. 3.78% 07/06/2001................... 20,000,000 19,987,400 3.75% 08/01/2001................... 8,900,000 8,870,333 3.70% 10/02/2001................... 14,000,000 13,864,744 Pitney Bowes, Inc. 4.60% 07/16/2001................... 21,000,000 20,957,067 PPG Industries, Inc. 3.80% 07/20/2001................... 7,500,000 7,484,167
See Accompanying Notes to Financial Statements 88 90 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- Prudential Funding Corp. 4.59% 07/11/2001................... $21,000,000 $ 20,970,547 UBS Finance, Inc. 3.93% 08/06/2001................... 13,000,000 12,947,491 3.52% 09/26/2001................... 14,000,000 13,879,538 3.56% 09/28/2001................... 16,000,000 15,857,600 Verizon Network Funding 3.88% 08/03/2001................... 12,000,000 11,956,027 -------------- Total Commercial Paper (Cost $1,131,626,935)........................ 1,131,626,935 -------------- REPURCHASE AGREEMENT (0.2%) J.P. Morgan Securities, Inc. 3.94% Dated 06/29/2001, due 07/02/2001 in the amount of $2,710,955. Collateralized by U.S. Treasury Notes 7.25% due 08/15/2004 U.S. Treasury Bonds 5.375% to 15.75% due 08/15/2001 to 02/15/2031 U.S. Treasury Strips due 08/15/2001 to 08/15/2028 (Cost $2,710,662).................. 2,710,662 2,710,662 -------------- TOTAL INVESTMENTS (100.0%) (Cost $1,224,334,773).................. 1,224,334,773 OTHER ASSETS LESS LIABILITIES (0.0%).... 317,571 -------------- NET ASSETS (100.0%)..................... $1,224,652,344 ==============
* Floating rate note whose interest rate is reset periodically based on an index. The interest rate shown reflects the rate at June 30, 2001. See Accompanying Notes to Financial Statements 89 91 STATEMENTS OF ASSETS AND LIABILITIES -------------------------------------------------------------------------------- COLUMBIA FUNDS June 30, 2001 (Unaudited) (In Thousands except Net Asset Value)
COMMON INTERNATIONAL STOCK GROWTH STOCK SPECIAL SMALL CAP FUND FUND FUND FUND FUND -------- ---------- ------------- -------- --------- ASSETS: Investments at cost.......................... $650,071 $1,257,557 $152,663 $828,036 $500,673 Investments at cost -- federal income tax purposes................................... $654,177 $1,281,996 $153,519 $851,810 $503,035 ---------------------------------------------- -------- ---------- -------- -------- -------- Investments at value......................... $756,248 $1,561,989 $150,688 $903,074 $580,041 Cash......................................... -- -- 73 -- -- Cash denominated in foreign currencies (cost $4,712).................................... -- -- 4,701 -- -- Receivable for: Investments sold........................... 9,528 19,110 1,198 21,057 6,384 Capital stock sold......................... 672 342 359 262 888 Interest................................... 137 103 81 175 118 Dividends.................................. 417 359 267 107 6 Expense reimbursement...................... -- -- -- -- -- -------- ---------- -------- -------- -------- Total assets................................. 767,002 1,581,903 157,367 924,675 587,437 -------- ---------- -------- -------- -------- LIABILITIES: Payable for: Investments purchased...................... 1,944 15,839 306 6,542 15,174 Capital stock redeemed..................... 511 1,268 87 842 1,083 Dividends and distributions................ -- -- -- -- -- Litigation................................. -- -- -- -- -- Investment management fee.................. 381 723 131 672 454 Transfer agent fees and expenses........... 71 124 42 74 41 Other accrued expenses..................... 111 198 90 121 60 -------- ---------- -------- -------- -------- Total liabilities............................ 3,018 18,152 656 8,251 16,812 -------- ---------- -------- -------- -------- NET ASSETS.................................... $763,984 $1,563,751 $156,711 $916,424 $570,625 ======== ========== ======== ======== ======== NET ASSETS consist of: Paid-in capital.............................. $668,878 $1,376,623 $170,911 $838,295 $556,033 Undistributed net investment income (loss)... 784 (1,261) 526 (1,831) (1,836) Undistributed net realized gain (accumulated losses) from Investment transactions....... (11,855) (116,043) (12,585) 4,922 (62,940) Foreign currency transactions.............. -- -- (140) -- -- Unrealized appreciation (depreciation) on: Investments................................ 106,177 304,432 (1,975) 75,038 79,368 Translation of assets and liabilities in foreign currencies........................ -- -- (26) -- -- -------- ---------- -------- -------- -------- NET ASSETS.................................... $763,984 $1,563,751 $156,711 $916,424 $570,625 ======== ========== ======== ======== ======== SHARES OF CAPITAL STOCK OUTSTANDING........... 35,044 45,291 11,974 41,809 23,404 ======== ========== ======== ======== ======== NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE.................................... $ 21.80 $ 34.53 $ 13.09 $ 21.92 $ 24.38 ======== ========== ======== ======== ========
See Accompanying Notes to Financial Statements 90 92
STATEMENTS OF ASSETS AND LIABILITIES -------------------------------------------------------------- REAL ESTATE STRATEGIC SHORT TERM EQUITY TECHNOLOGY VALUE BALANCED BOND FUND FUND FUND FUND FUND ----------- ---------- --------- ---------- ---------- ASSETS: Investments at cost.......................... $450,899 $13,616 $70,595 $ 968,941 $40,030 Investments at cost -- federal income tax purposes................................... $448,302 $13,989 $70,920 $ 973,890 $40,032 ---------------------------------------------- -------- ------- ------- ---------- ------- Investments at value......................... $523,235 $14,908 $77,778 $1,054,208 $40,638 Cash......................................... -- -- -- -- -- Cash denominated in foreign currencies (cost $4,712).................................... -- -- -- -- -- Receivable for: Investments sold........................... -- 731 3,812 8,744 -- Capital stock sold......................... 496 5 169 506 -- Interest................................... 145 3 43 6,011 494 Dividends.................................. 2,152 -- 83 338 -- Expense reimbursement...................... -- 10 -- -- 7 -------- ------- ------- ---------- ------- Total assets................................. 526,028 15,657 81,885 1,069,807 41,139 -------- ------- ------- ---------- ------- LIABILITIES: Payable for: Investments purchased...................... -- 615 3,050 3,214 771 Capital stock redeemed..................... 1,581 2 62 692 338 Dividends and distributions................ 81 -- -- 95 10 Litigation................................. -- -- -- -- -- Investment management fee.................. 313 12 45 442 16 Transfer agent fees and expenses........... 16 4 6 77 5 Other accrued expenses..................... 28 22 24 101 11 -------- ------- ------- ---------- ------- Total liabilities............................ 2,019 655 3,187 4,621 1,151 -------- ------- ------- ---------- ------- NET ASSETS.................................... $524,009 $15,002 $78,698 $1,065,186 $39,988 ======== ======= ======= ========== ======= NET ASSETS consist of: Paid-in capital.............................. $457,398 $16,117 $69,624 $1,010,486 $39,568 Undistributed net investment income (loss)... 230 (54) 195 33 -- Undistributed net realized gain (accumulated losses) from Investment transactions....... (5,955) (2,353) 1,696 (30,600) (188) Foreign currency transactions.............. -- -- -- -- -- Unrealized appreciation (depreciation) on: Investments................................ 72,336 1,292 7,183 85,267 608 Translation of assets and liabilities in foreign currencies........................ -- -- -- -- -- -------- ------- ------- ---------- ------- NET ASSETS.................................... $524,009 $15,002 $78,698 $1,065,186 $39,988 ======== ======= ======= ========== ======= SHARES OF CAPITAL STOCK OUTSTANDING........... 28,158 2,058 5,633 49,391 4,737 ======== ======= ======= ========== ======= NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE.................................... $ 18.61 $ 7.29 $ 13.97 $ 21.57 $ 8.44 ======== ======= ======= ========== =======
STATEMENTS OF ASSETS AND LIABILITIES ------------------------------------------------------------- FIXED NATIONAL OREGON COLUMBIA INCOME MUNICIPAL MUNICIPAL DAILY SECURITIES BOND BOND HIGH YIELD INCOME FUND FUND FUND FUND COMPANY ---------- --------- --------- ---------- ---------- ASSETS: Investments at cost.......................... $410,282 $10,256 $452,554 $176,837 $1,224,335 Investments at cost -- federal income tax purposes................................... $410,989 $10,255 $452,421 $177,137 $1,224,335 ---------------------------------------------- -------- ------- -------- -------- ---------- Investments at value......................... $416,611 $10,511 $464,996 $174,341 $1,224,335 Cash......................................... -- -- -- -- 4,000 Cash denominated in foreign currencies (cost $4,712).................................... -- -- -- -- -- Receivable for: Investments sold........................... 35 141 -- -- -- Capital stock sold......................... 640 -- 341 447 1,113 Interest................................... 5,720 -- 6,185 3,906 891 Dividends.................................. -- -- -- -- -- Expense reimbursement...................... -- 10 -- -- -- -------- ------- -------- -------- ---------- Total assets................................. 423,006 10,662 471,522 178,694 1,230,339 -------- ------- -------- -------- ---------- LIABILITIES: Payable for: Investments purchased...................... 425 -- -- -- -- Capital stock redeemed..................... 463 -- 195 184 4,974 Dividends and distributions................ 125 4 397 50 -- Litigation................................. -- -- -- 178 -- Investment management fee.................. 174 5 193 88 469 Transfer agent fees and expenses........... 28 -- 10 8 87 Other accrued expenses..................... 36 8 42 68 157 -------- ------- -------- -------- ---------- Total liabilities............................ 1,251 17 837 576 5,687 -------- ------- -------- -------- ---------- NET ASSETS.................................... $421,755 $10,645 $470,685 $178,118 $1,224,652 ======== ======= ======== ======== ========== NET ASSETS consist of: Paid-in capital.............................. $427,997 $10,396 $457,816 $187,017 $1,224,652 Undistributed net investment income (loss)... (246) (2) 21 (119) -- Undistributed net realized gain (accumulated losses) from Investment transactions....... (12,325) (4) 406 (6,284) -- Foreign currency transactions.............. -- -- -- -- -- Unrealized appreciation (depreciation) on: Investments................................ 6,329 255 12,442 (2,496) -- Translation of assets and liabilities in foreign currencies........................ -- -- -- -- -- -------- ------- -------- -------- ---------- NET ASSETS.................................... $421,755 $10,645 $470,685 $178,118 $1,224,652 ======== ======= ======== ======== ========== SHARES OF CAPITAL STOCK OUTSTANDING........... 32,388 1,082 38,605 19,958 1,224,652 ======== ======= ======== ======== ========== NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE.................................... $ 13.02 $ 9.84 $ 12.19 $ 8.92 $ 1.00 ======== ======= ======== ======== ==========
See Accompanying Notes to Financial Statements 91 93 STATEMENTS OF OPERATIONS -------------------------------------------------------------------------------- COLUMBIA FUNDS FOR THE SIX MONTHS ENDED JUNE 30, 2001 (UNAUDITED) (IN THOUSANDS)
COMMON INTERNATIONAL STOCK GROWTH STOCK SPECIAL SMALL CAP FUND FUND FUND FUND FUND -------- --------- ------------- --------- --------- NET INVESTMENT INCOME: Income: Interest................................... $ 518 $ 829 $ 192 $ 2,156 $ 986 Dividends.................................. 3,405 3,766 1,862 994 247 Foreign withholding tax on dividend income.................................... -- -- (252) -- -- -------- --------- -------- --------- -------- Total income.............................. 3,923 4,595 1,802 3,150 1,233 -------- --------- -------- --------- -------- Expenses: Investment management fees................. 2,383 4,549 827 4,171 2,517 Transfer agent fees and expenses........... 449 779 272 475 264 Shareholder servicing fees................. 128 114 8 137 162 Postage, printing, and other............... 122 330 74 131 34 Custodian fees............................. 34 53 70 40 42 Registration and filing fees............... 9 17 8 12 36 Legal, insurance, and audit fees........... 19 24 21 22 19 Director fees.............................. 3 7 1 4 2 -------- --------- -------- --------- -------- Total expenses............................ 3,147 5,873 1,281 4,992 3,076 Fees paid indirectly....................... (8) (17) (5) (11) (7) Expense reimbursements..................... -- -- -- -- -- -------- --------- -------- --------- -------- Net expenses.............................. 3,139 5,856 1,276 4,981 3,069 -------- --------- -------- --------- -------- Net investment income (loss)................. 784 (1,261) 526 (1,831) (1,836) -------- --------- -------- --------- -------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) from: Investment transactions.................... (4,232) (119,088) (9,366) (21,173) (42,706) Foreign currency transactions.............. -- -- (140) -- -- -------- --------- -------- --------- -------- Net realized gain (loss).................. (4,232) (119,088) (9,506) (21,173) (42,706) -------- --------- -------- --------- -------- Change in net unrealized appreciation or depreciation on: Investments................................ (90,745) (133,050) (11,176) (148,955) 15,951 Translation of assets and liabilities in foreign currencies........................ -- -- (62) -- -- -------- --------- -------- --------- -------- Change in net unrealized appreciation or depreciation............................ (90,745) (133,050) (11,238) (148,955) 15,951 -------- --------- -------- --------- -------- Net realized and unrealized gain (loss) on investments............................. (94,977) (252,138) (20,744) (170,128) (26,755) -------- --------- -------- --------- -------- NET INCREASE (DECREASE) RESULTING FROM OPERATIONS................................... $(94,193) $(253,399) $(20,218) $(171,959) $(28,591) ======== ========= ======== ========= ========
See Accompanying Notes to Financial Statements 92 94 STATEMENTS OF OPERATIONS --------------------------------------------------------------------------------
REAL ESTATE STRATEGIC SHORT TERM EQUITY TECHNOLOGY VALUE BALANCED BOND FUND FUND FUND FUND FUND ----------- ---------- --------- -------- ---------- NET INVESTMENT INCOME: Income: Interest................................... $ 588 $ 25 $ 161 $15,124 $1,217 Dividends.................................. 10,292 3 284 2,686 -- Foreign withholding tax on dividend income.................................... -- -- -- -- -- ------- ------- ------ -------- ------ Total income.............................. 10,880 28 445 17,810 1,217 ------- ------- ------ -------- ------ Expenses: Investment management fees................. 1,687 49 159 2,690 94 Transfer agent fees and expenses........... 117 32 41 482 52 Shareholder servicing fees................. 221 5 5 222 -- Postage, printing, and other............... 13 9 6 100 9 Custodian fees............................. 19 20 15 44 3 Registration and filing fees............... 35 6 15 11 5 Legal, insurance, and audit fees........... 14 13 10 22 14 Director fees.............................. 2 -- -- 5 -- ------- ------- ------ -------- ------ Total expenses............................ 2,108 134 251 3,576 177 Fees paid indirectly....................... (4) (1) (1) (9) (1) Expense reimbursements..................... -- (51) -- -- (35) ------- ------- ------ -------- ------ Net expenses.............................. 2,104 82 250 3,567 141 ------- ------- ------ -------- ------ Net investment income (loss)................. 8,776 (54) 195 14,243 1,076 ------- ------- ------ -------- ------ NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) from: Investment transactions.................... 2,168 (2,138) 1,716 (16,199) 309 Foreign currency transactions.............. -- -- -- -- -- ------- ------- ------ -------- ------ Net realized gain (loss).................. 2,168 (2,138) 1,716 (16,199) 309 ------- ------- ------ -------- ------ Change in net unrealized appreciation or depreciation on: Investments................................ 18,051 1,531 6,336 (53,290) 46 Translation of assets and liabilities in foreign currencies........................ -- -- -- -- -- ------- ------- ------ -------- ------ Change in net unrealized appreciation or depreciation............................ 18,051 1,531 6,336 (53,290) 46 ------- ------- ------ -------- ------ Net realized and unrealized gain (loss) on investments............................. 20,219 (607) 8,052 (69,489) 355 ------- ------- ------ -------- ------ NET INCREASE (DECREASE) RESULTING FROM OPERATIONS................................... $28,995 $ (661) $8,247 $(55,246) $1,431 ======= ======= ====== ======== ======
FIXED NATIONAL OREGON COLUMBIA INCOME MUNICIPAL MUNICIPAL DAILY SECURITIES BOND BOND HIGH YIELD INCOME FUND FUND FUND FUND COMPANY ---------- --------- --------- ---------- -------- NET INVESTMENT INCOME: Income: Interest................................... $13,763 $284 $12,243 $ 6,590 $32,229 Dividends.................................. -- -- -- -- -- Foreign withholding tax on dividend income.................................... -- -- -- -- -- ------- ---- ------- ------- ------- Total income.............................. 13,763 284 12,243 6,590 32,229 ------- ---- ------- ------- ------- Expenses: Investment management fees................. 1,014 27 1,155 461 2,808 Transfer agent fees and expenses........... 185 22 80 67 538 Shareholder servicing fees................. 56 -- 12 60 2 Postage, printing, and other............... 34 4 42 46 119 Custodian fees............................. 19 1 15 10 109 Registration and filing fees............... 13 8 8 34 19 Legal, insurance, and audit fees........... 17 13 19 20 22 Director fees.............................. 2 -- 2 1 5 ------- ---- ------- ------- ------- Total expenses............................ 1,340 75 1,333 699 3,622 Fees paid indirectly....................... (4) -- (3) (2) (47) Expense reimbursements..................... -- (40) -- -- -- ------- ---- ------- ------- ------- Net expenses.............................. 1,336 35 1,330 697 3,575 ------- ---- ------- ------- ------- Net investment income (loss)................. 12,427 249 10,913 5,893 28,654 ------- ---- ------- ------- ------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) from: Investment transactions.................... 3,158 58 323 (3,374) -- Foreign currency transactions.............. -- -- -- -- -- ------- ---- ------- ------- ------- Net realized gain (loss).................. 3,158 58 323 (3,374) -- ------- ---- ------- ------- ------- Change in net unrealized appreciation or depreciation on: Investments................................ (1,954) (31) 1,809 816 -- Translation of assets and liabilities in foreign currencies........................ -- -- -- -- -- ------- ---- ------- ------- ------- Change in net unrealized appreciation or depreciation............................ (1,954) (31) 1,809 816 -- ------- ---- ------- ------- ------- Net realized and unrealized gain (loss) on investments............................. 1,204 27 2,132 (2,558) -- ------- ---- ------- ------- ------- NET INCREASE (DECREASE) RESULTING FROM OPERATIONS................................... $13,631 $276 $13,045 $ 3,335 $28,654 ======= ==== ======= ======= =======
See Accompanying Notes to Financial Statements 93 95 STATEMENTS OF CHANGES IN NET ASSETS -------------------------------------------------------------------------------- COLUMBIA FUNDS (IN THOUSANDS)
COMMON STOCK FUND GROWTH FUND INTERNATIONAL STOCK FUND ----------------------------- ----------------------------- ----------------------------- SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR ENDED ENDED ENDED ENDED ENDED ENDED JUNE 30, 2001 DECEMBER 31, JUNE 30, 2001 DECEMBER 31, JUNE 30, 2001 DECEMBER 31, (UNAUDITED) 2000 (UNAUDITED) 2000 (UNAUDITED) 2000 ------------- ------------- ------------- ------------- ------------- ------------- OPERATIONS: Net investment income (loss)..................... $ 784 $ (528) $ (1,261) $ (3,975) $ 526 $ (418) Net realized gain (loss) from: Investment transactions.... (4,232) 77,923 (119,088) 181,942 (9,366) 22,823 Foreign currency transactions.............. -- -- -- -- (140) (571) Change in net unrealized appreciation or depreciation on: Investments................ (90,745) (134,130) (133,050) (347,199) (11,176) (78,760) Translation of assets and liabilities in foreign currencies................ -- -- -- -- (62) 40 ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) resulting from operations................. (94,193) (56,735) (253,399) (169,232) (20,218) (56,886) DISTRIBUTIONS TO SHAREHOLDERS: From net investment income... -- -- -- -- -- -- From net realized gain from investment transactions and foreign currency transactions............... -- (98,504) -- (227,212) -- (28,787) From return of capital....... -- -- -- -- -- -- NET CAPITAL SHARE TRANSACTIONS................. (36,957) 90,463 (102,077) 154,932 1,613 21,766 ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets....................... (131,150) (64,776) (355,476) (241,512) (18,605) (63,907) NET ASSETS: Beginning of period.......... 895,134 959,910 1,919,227 2,160,739 175,316 239,223 ------------ ------------ ------------ ------------ ------------ ------------ End of period................ $ 763,984 $ 895,134 $ 1,563,751 $ 1,919,227 $ 156,711 $ 175,316 ============ ============ ============ ============ ============ ============ Undistributed net investment income (loss) at end of period....................... $ 784 $ -- $ (1,261) $ -- $ 526 $ -- ============ ============ ============ ============ ============ ============
FIXED INCOME BALANCED FUND SHORT TERM BOND FUND SECURITIES FUND ----------------------------- ----------------------------- ----------------------------- SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR ENDED ENDED ENDED ENDED ENDED ENDED JUNE 30, 2001 DECEMBER 31, JUNE 30, 2001 DECEMBER 31, JUNE 30, 2001 DECEMBER 31, (UNAUDITED) 2000 (UNAUDITED) 2000 (UNAUDITED) 2000 ------------- ------------- ------------- ------------- ------------- ------------- OPERATIONS: Net investment income........ $ 14,243 $ 29,487 $ 1,076 $ 1,807 $ 12,427 $ 24,636 Net realized gain (loss) from investment transactions.... (16,199) 34,216 309 (160) 3,158 (5,893) Change in net unrealized appreciation or depreciation on investments................ (53,290) (58,072) 46 826 (1,954) 21,661 ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) resulting from operations................. (55,246) 5,631 1,431 2,473 13,631 40,404 DISTRIBUTIONS TO SHAREHOLDERS: From net investment income... (14,210) (29,675) (1,076) (1,807) (12,673) (24,636) From net realized gain from investment transactions.... -- (60,990) -- -- -- -- NET CAPITAL SHARE TRANSACTIONS................. 7,788 170,948 3,777 (2,882) 41,998 (34,116) ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets....................... (61,668) 85,914 4,132 (2,216) 42,956 (18,348) NET ASSETS: Beginning of period.......... 1,126,854 1,040,940 35,856 38,072 378,799 397,147 ------------ ------------ ------------ ------------ ------------ ------------ End of period................ $ 1,065,186 $ 1,126,854 $ 39,988 $ 35,856 $ 421,755 $ 378,799 ============ ============ ============ ============ ============ ============ Undistributed net investment income (loss) at end of period....................... $ 33 $ -- $ -- $ -- $ (246) $ -- ============ ============ ============ ============ ============ ============
See Accompanying Notes to Financial Statements 94 96 STATEMENTS OF CHANGES IN NET ASSETS --------------------------------------------------------------------------------
SPECIAL FUND SMALL CAP FUND REAL ESTATE EQUITY FUND ----------------------------- ----------------------------- ----------------------------- SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR ENDED ENDED ENDED ENDED ENDED ENDED JUNE 30, 2001 DECEMBER 31, JUNE 30, 2001 DECEMBER 31, JUNE 30, 2001 DECEMBER 31, (UNAUDITED) 2000 (UNAUDITED) 2000 (UNAUDITED) 2000 ------------- ------------- ------------- ------------- ------------- ------------- OPERATIONS: Net investment income (loss)..................... $ (1,831) $ (4,293) $ (1,836) $ (1,988) $ 8,776 $ 17,385 Net realized gain (loss) from: Investment transactions.... (21,173) 228,792 (42,706) 34,983 2,168 (2,132) Foreign currency transactions.............. -- -- -- -- -- -- Change in net unrealized appreciation or depreciation on: Investments................ (148,955) (103,303) 15,951 (30,358) 18,051 67,537 Translation of assets and liabilities in foreign currencies................ -- -- -- -- -- -- ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) resulting from operations................. (171,959) 121,196 (28,591) 2,637 28,995 82,790 DISTRIBUTIONS TO SHAREHOLDERS: From net investment income... -- -- -- -- (8,546) (16,043) From net realized gain from investment transactions and foreign currency transactions............... -- (267,238) -- (53,611) -- -- From return of capital....... -- -- -- -- -- (1,342) NET CAPITAL SHARE TRANSACTIONS................. (7,142) 323,245 80,246 279,570 66,796 129,641 ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets....................... (179,101) 177,203 51,655 228,596 87,245 195,048 NET ASSETS: Beginning of period.......... 1,095,525 918,322 518,970 290,374 436,764 241,716 ------------ ------------ ------------ ------------ ------------ ------------ End of period................ $ 916,424 $ 1,095,525 $ 570,625 $ 518,970 $ 524,009 $ 436,764 ============ ============ ============ ============ ============ ============ Undistributed net investment income (loss) at end of period....................... $ (1,831) $ -- $ (1,836) $ -- $ 230 $ -- ============ ============ ============ ============ ============ ============
TECHNOLOGY FUND STRATEGIC VALUE FUND ----------------------------- ----------------------------- SIX MONTHS OCTOBER 27 SIX MONTHS OCTOBER 27 ENDED THROUGH ENDED THROUGH JUNE 30, 2001 DECEMBER 31, JUNE 30, 2001 DECEMBER 31, (UNAUDITED) 2000 (UNAUDITED) 2000 ------------- ------------- ------------- ------------- OPERATIONS: Net investment income (loss)..................... $ (54) $ 4 $ 195 $ 13 Net realized gain (loss) from: Investment transactions.... (2,138) (215) 1,716 (20) Foreign currency transactions.............. -- -- -- -- Change in net unrealized appreciation or depreciation on: Investments................ 1,531 (239) 6,336 847 Translation of assets and liabilities in foreign currencies................ -- -- -- -- ------------ ------------ ------------ ------------ Net increase (decrease) resulting from operations................. (661) (450) 8,247 840 DISTRIBUTIONS TO SHAREHOLDERS: From net investment income... -- (4) -- (13) From net realized gain from investment transactions and foreign currency transactions............... -- -- -- -- From return of capital....... -- -- -- -- NET CAPITAL SHARE TRANSACTIONS................. 11,336 4,781 60,925 8,699 ------------ ------------ ------------ ------------ Net increase (decrease) in net assets....................... 10,675 4,327 69,172 9,526 NET ASSETS: Beginning of period.......... 4,327 -- 9,526 -- ------------ ------------ ------------ ------------ End of period................ $ 15,002 $ 4,327 $ 78,698 $ 9,526 ============ ============ ============ ============ Undistributed net investment income (loss) at end of period....................... $ (54) $ -- $ 195 $ -- ============ ============ ============ ============
NATIONAL MUNICIPAL OREGON MUNICIPAL BOND FUND BOND FUND ----------------------------- ----------------------------- SIX MONTHS YEAR SIX MONTHS YEAR ENDED ENDED ENDED ENDED JUNE 30, 2001 DECEMBER 31, JUNE 30, 2001 DECEMBER 31, (UNAUDITED) 2000 (UNAUDITED) 2000 ------------- ------------- ------------- ------------- OPERATIONS: Net investment income........ $ 249 $ 506 $ 10,913 $ 20,398 Net realized gain (loss) from investment transactions.... 58 (61) 323 320 Change in net unrealized appreciation or depreciation on investments................ (31) 690 1,809 20,124 ------------ ------------ ------------ ------------ Net increase (decrease) resulting from operations................. 276 1,135 13,045 40,842 DISTRIBUTIONS TO SHAREHOLDERS: From net investment income... (251) (506) (10,892) (20,398) From net realized gain from investment transactions.... -- -- -- (286) NET CAPITAL SHARE TRANSACTIONS................. (278) 134 31,988 6,467 ------------ ------------ ------------ ------------ Net increase (decrease) in net assets....................... (253) 763 34,141 26,625 NET ASSETS: Beginning of period.......... 10,898 10,135 436,544 409,919 ------------ ------------ ------------ ------------ End of period................ $ 10,645 $ 10,898 $ 470,685 $ 436,544 ============ ============ ============ ============ Undistributed net investment income (loss) at end of period....................... $ (2) $ -- $ 21 $ -- ============ ============ ============ ============
COLUMBIA DAILY HIGH YIELD FUND INCOME COMPANY ----------------------------- ----------------------------- SIX MONTHS YEAR SIX MONTHS YEAR ENDED ENDED ENDED ENDED JUNE 30, 2001 DECEMBER 31, JUNE 30, 2001 DECEMBER 31, (UNAUDITED) 2000 (UNAUDITED) 2000 ------------- ------------- ------------- ------------- OPERATIONS: Net investment income........ $ 5,893 $ 6,353 $ 28,654 $ 68,891 Net realized gain (loss) from investment transactions.... (3,374) (1,570) -- -- Change in net unrealized appreciation or depreciation on investments................ 816 (1,057) -- -- ------------ ------------ ------------ ------------ Net increase (decrease) resulting from operations................. 3,335 3,726 28,654 68,891 DISTRIBUTIONS TO SHAREHOLDERS: From net investment income... (6,012) (6,353) (28,654) (68,891) From net realized gain from investment transactions.... -- -- -- -- NET CAPITAL SHARE TRANSACTIONS................. 83,220 28,524 26,501 32,862 ------------ ------------ ------------ ------------ Net increase (decrease) in net assets....................... 80,543 25,897 26,501 32,862 NET ASSETS: Beginning of period.......... 97,575 71,678 1,198,151 1,165,289 ------------ ------------ ------------ ------------ End of period................ $ 178,118 $ 97,575 $ 1,224,652 $ 1,198,151 ============ ============ ============ ============ Undistributed net investment income (loss) at end of period....................... $ (119) $ -- $ -- $ -- ============ ============ ============ ============
See Accompanying Notes to Financial Statements 95 97 NOTES TO FINANCIAL STATEMENTS -------------------------------------------------------------------------------- (UNAUDITED) NOTE 1 -- SIGNIFICANT ACCOUNTING POLICIES The Columbia Funds (the "Funds") consist of the following: Columbia Common Stock Fund, Inc. Columbia Growth Fund, Inc. Columbia International Stock Fund, Inc. Columbia Special Fund, Inc. Columbia Small Cap Fund, Inc. Columbia Real Estate Equity Fund, Inc. Columbia Technology Fund, Inc. Columbia Strategic Value Fund, Inc. Columbia Balanced Fund, Inc. Columbia Short Term Bond Fund, Inc. Columbia Fixed Income Securities Fund, Inc. Columbia National Municipal Bond Fund, Inc. Columbia Oregon Municipal Bond Fund, Inc. Columbia High Yield Fund, Inc. Columbia Daily Income Company All Funds are open-end investment companies registered under the Investment Company Act of 1940, as amended, and are diversified except the Technology and Oregon Municipal Bond Funds, which are non-diversified. Following is a summary of significant accounting policies, in conformity with generally accepted accounting principles, which are consistently followed by each Fund in the preparation of its financial statements. INVESTMENT VALUATION. Equity securities are valued based on the last sales prices reported by the principal securities exchanges on which the investments are traded or, in the absence of recorded sales, at the closing bid prices on such exchanges or over-the-counter markets. Fixed income securities are valued based on market values as quoted by dealers who are market makers in these securities, by independent pricing services, or by the adviser using a methodology approved by the Board of Directors. Market values for fixed income securities, except for municipal securities, are based on the average of bid and ask prices, or by reference to other securities with comparable ratings, interest rates and maturities. Market value for municipal securities is based on bid prices. Investment securities with less than 60 days to maturity when purchased and all securities held by Columbia Daily Income Company, are valued at amortized cost, which approximates market value. Securities for which market quotations are not readily available will be valued at fair market value as determined in good faith under procedures established by and under the general supervision of the Board of Directors of each Fund. REPURCHASE AGREEMENTS. The Funds may engage in repurchase agreement transactions. The Funds, through their custodians, receive delivery of underlying securities collateralizing repurchase agreements. The Funds' investment advisor determines that the value of the underlying securities is at all times at least equal to the resale price. In the event of default or bankruptcy by the other party to the agreement, realization and/or retention of the collateral may be subject to legal proceedings. OPTION CONTRACTS. Certain Funds may engage in option contracts. A fund may use option contracts to manage its exposure to the stock and bond markets and to fluctuations in interest rates and currency values. The underlying principal amounts and option values are shown in the Schedule of Investments. These amounts reflect each contract's exposure to the underlying instrument. Buying puts and writing calls tends to decrease a fund's exposure to the underlying instruments or to hedge other fund investments. Upon the purchase of a put option or a call option by a fund, the premium paid is recorded as an investment, the value of which is marked to market daily. When a purchased option expires, the fund will realize a loss in the amount of the cost of the option. When a fund enters into a closing sale transaction, the fund will realize a gain or loss depending on whether the sale proceeds from the closing sale transaction are greater or less than the cost of the option. When a fund exercises a put option, it will realize a gain or loss from the sale of the underlying security and the proceeds from such sale will be decreased by the premium originally paid. When a fund exercises a call option, the cost of the security which the fund purchases upon exercise will be increased by the premium originally paid. 96 98 NOTES TO FINANCIAL STATEMENTS -------------------------------------------------------------------------------- (UNAUDITED) When a fund writes a call option or a put option, an amount equal to the premium received by the fund is recorded as a liability, the value of which is marked to market daily. When a written option expires, the fund will realize a gain equal to the amount of the premium received. When a fund enters into a closing purchase transaction, the fund will realize a gain (or loss if the cost of the closing purchase transaction exceeds the premium received when the option is sold) without regard to any unrealized gain or loss on the underlying security, and the liability related to such option is eliminated. When a written call option is exercised, the fund will realize a gain or loss from the sale of the underlying security and the proceeds from such sale are increased by the premium originally received. When a written put option is exercised, the amount of the premium originally received will reduce the cost of the security that the fund purchases upon exercise. INVESTMENT TRANSACTIONS. Investment transactions are accounted for as of the date the investments are purchased or sold. Net realized gains and losses are determined on the identified cost basis, which is also used for federal income tax purposes. Securities purchased on a when-issued or forward-delivery basis may be settled a month or more after trade date; interest income is not accrued until settlement date. Each fund segregates liquid assets with a current value at least equal to the amount of its when-issued purchase commitments until settlement date. INVESTMENT INCOME AND EXPENSES. Dividend income less foreign taxes withheld (if any) is recorded on the ex-dividend date. Certain dividends from foreign securities are recorded as soon as the fund is informed of the dividend if such information is obtained subsequent to the ex-dividend date. Interest income is recorded on the accrual basis and includes accretion of discounts or amortization of premiums. Expenses are recorded on the accrual basis and each fund bears expenses incurred specifically on its behalf as well as a portion of general expenses incurred on behalf of all funds. Expenses for "fees paid indirectly" reflect earnings credits on uninvested cash balances used to reduce the fund's custodian charges. FORWARD CURRENCY EXCHANGE CONTRACTS. Certain funds may enter into forward currency exchange contracts in connection with planned purchases or sales of securities or to hedge the U.S. dollar value of the portfolio securities denominated in a foreign currency. Contracts are valued at the prevailing forward exchange rate of the underlying currencies. The gain or loss arising from the difference between the original contract price and the closing price of such contract is included in the net realized gains or losses from foreign currency transactions. Fluctuations in the value of forward currency contracts are recorded for financial reporting purposes as unrealized gains or losses. The fund could be exposed to risks if counterparties to the forward contracts are unable to meet the terms of their contracts or if the value of the foreign currency changes unfavorably. The effect of any change in the value of a hedged foreign currency would be offset by the corresponding change (resulting from a change in exchange rates) in value of the securities denominated in that currency. For the International Stock Fund net realized gains arising from such transactions for the six months ended June 30, 2001, amounted to $36,053 and are included in realized gains from foreign currency transactions. As of June 30, 2001, the Funds had no outstanding forward currency contracts. FOREIGN CURRENCY TRANSLATIONS. The books and records of the International Stock Fund are maintained in U.S. dollars. Foreign currencies, investments and other assets and liabilities of the Funds are translated into U.S. dollars at the daily rates of exchange on the valuation date. Purchases and sales of investment securities, dividend and interest income and certain expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. The International Stock Fund does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices on investments held. Such fluctuations are included with the net realized and unrealized gain or loss from investments. Reported net realized foreign currency gains or losses arise from the sales of foreign currencies, currency gains 97 99 NOTES TO FINANCIAL STATEMENTS -------------------------------------------------------------------------------- (UNAUDITED) NOTE 1 -- SIGNIFICANT ACCOUNTING POLICIES (CONT.) or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalents of the amounts actually received or paid. Net unrealized foreign exchange gains or losses arise from changes in the value of assets and liabilities, other than investments in securities, resulting from changes in the exchange rate. USE OF ESTIMATES. The preparation of the financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends from net investment income of the Common Stock, Real Estate Equity and Balanced Funds are declared and paid quarterly. Dividends from net investment income of the Growth, International Stock, Special, Small Cap, Technology and Strategic Value Funds are declared and paid annually. Dividends from net investment income of the Short Term Bond, Fixed Income Securities, National Municipal Bond, Oregon Municipal Bond and High Yield Funds are declared daily and paid monthly. Dividends from net investment income of the Columbia Daily Income Company are declared and paid daily. Distributions from any net realized gains are generally declared and paid annually. Additional distributions of net investment income and capital gains for each Fund may be made at the discretion of the Board of Directors in accordance with federal income tax regulations. FEDERAL INCOME TAXES. Each fund intends to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies by distributing substantially all taxable net investment income and net realized gains to its shareholders in a manner that results in no tax to the Funds. Therefore, no federal income or excise tax provision is required. FOREIGN CAPITAL GAINS TAXES. Realized gains in certain countries may be subject to foreign taxes at the fund level, at rates ranging from approximately 10% to 30%. The Funds provide for such foreign taxes on net realized and unrealized gains at the appropriate rate for each jurisdiction. PREMIUM AND DISCOUNT AMORTIZATION/PAYDOWN GAINS-LOSSES. In November 2000, a revised AICPA Audit and Accounting Guide, Audits of Investment Companies, was issued, and is effective for fiscal years beginning after December 15, 2000. The revised Guide requires the Funds to amortize premium and discount on all fixed income securities, and classify gains and losses realized on prepayments received on mortgage-backed securities (paydown gains and losses) previously included in realized gain/loss, as part of interest income. Upon initial adoption, the Funds adjusted the cost of their fixed-income securities by the cumulative amount of amortization that would have been recognized had amortization been in effect from the purchase date of each holding with a corresponding reclassification between unrealized appreciation on investments and undistributed net income. Adoption of these accounting principles does not affect the Funds' net asset values or distributions, but changes the classification of certain amounts between interest income and realized and unrealized gain/loss in the Statements of Operations. The cumulative effect to the Funds resulting from the adoption of premium and discount amortization and recog- 98 100 NOTES TO FINANCIAL STATEMENTS -------------------------------------------------------------------------------- (UNAUDITED) nition of paydown gains and losses as part of interest income on the financial statements is as follows:
AS OF FOR THE SIX MONTHS ENDED JANUARY 1, 2001 JUNE 30, 2001 --------------- ---------------------------------- NET NET NET COST OF INVESTMENT UNREALIZED REALIZED INVESTMENTS INCOME GAINS GAINS --------------- ---------- ---------- -------- Increase (decrease) Balanced Fund........ $(424,616) $(218,935) $106,730 $112,205 Fixed Income Securities Fund..... (340,884) (246,377) 199,509 46,868 National Municipal Bond Fund........... 3,143 (2,146) 1,877 269 Oregon Municipal Bond Fund................ 120,220 21,417 (22,073) 656 High Yield Fund...... (214,213) (118,811) 15,818 102,993
OTHER. The High Yield Fund invests in lower rated debt securities, which may be more susceptible to adverse economic conditions than investment grade holdings. These securities are often subordinated to the prior claims of other senior lenders, and uncertainties exist as to an issuer's ability to meet principal and interest payments. As of June 30, 2001, 10% of the Fund's debt securities were rated Baa, 45% were rated Ba, and 45% were rated B, as rated by Moody's Investors Service, Inc. The Fund currently holds Flooring America, Inc., 12.75% Senior Subordinate Notes, Series B, due 10/15/2002, which represents less than 1% of the Fund's portfolio. Flooring America filed a bankruptcy petition for reorganization on June 15, 2000 and effective on that date, the Fund stopped accruing income on the bonds. Prior to the bankruptcy petition the Fund received payments for interest and a partial tender of the Bonds. Flooring America has filed a petition for return of these payments. The Fund has joined other bondholders and is vigorously defending the litigation. If the Fund is required to return the payments, the potential loss to the Fund as of June 30, 2001 is approximately $0.02 per share. A loss reserve has been established for a portion of interest and principal payments that the Fund received. 99 101 NOTES TO FINANCIAL STATEMENTS -------------------------------------------------------------------------------- (UNAUDITED) NOTE 2 -- INVESTMENT TRANSACTIONS During the six months ended June 30, 2001, purchases and sales of long-term securities, and net realized gains (losses) were as follows:
REALIZED PURCHASES SALES GAINS (LOSSES) -------------- -------------- -------------- Common Stock Fund........................................... $ 461,372,760 $ 516,042,930 $ (4,231,648) Growth Fund................................................. 1,071,335,083 1,157,501,892 (119,087,571) International Stock Fund.................................... 99,471,205 105,774,339 (9,366,285) Special Fund................................................ 872,766,903 866,348,949 *(21,172,850) Small Cap Fund.............................................. 376,971,116 283,217,466 (42,705,962) Real Estate Equity Fund..................................... 163,693,903 108,957,212 2,168,388 Technology Fund............................................. 28,798,860 17,694,515 (2,137,814) Strategic Value Fund........................................ 107,352,575 59,278,000 1,715,754 Balanced Fund............................................... 492,706,265 496,850,814 (17,601,770) Short Term Bond Fund........................................ 14,565,667 10,643,426 179,646 Fixed Income Securities Fund................................ 106,430,628 99,859,352 2,515,426 National Municipal Bond Fund................................ 1,238,328 1,656,044 58,889 Oregon Municipal Bond Fund.................................. 63,599,749 26,485,355 321,387 High Yield Fund............................................. 113,847,728 46,950,811 (3,476,883)
* Includes proceeds of $1,980,000 from shareholder class action suits related to securities held. During the six months ended June 30, 2001, purchases, sales, and net realized gains (losses) of U.S. Government securities were as follows:
REALIZED PURCHASES SALES GAINS (LOSSES) ------------ ------------ -------------- Balanced Fund............................................... $110,486,883 $112,243,045 $1,291,152 Short Term Bond Fund........................................ 13,649,324 11,928,083 128,438 Fixed Income Securities Fund................................ 133,938,579 107,332,712 595,764
During the six months ended June 30, 2001, written option transactions for the Special Fund were as follows:
PUTS CALLS ------------------------------- ------------------------------- NUMBER OF NUMBER OF CONTRACTS PREMIUMS CONTRACTS PREMIUMS ----------- ----------- ----------- ----------- Outstanding at December 31, 2000.................... 3,250 $ 4,033,250 3,250 $ 3,988,492 Options written..................................... -- -- -- -- Options expired..................................... (3,150) (3,919,200) (3,150) (3,882,546) Options closed...................................... (100) (114,050) (100) (105,946) Options exercised................................... -- -- -- -- ----------- ----------- ----------- ----------- Outstanding at June 30, 2001........................ -- $ -- -- $ -- =========== =========== =========== ===========
100 102 NOTES TO FINANCIAL STATEMENTS -------------------------------------------------------------------------------- (UNAUDITED) NOTE 3 -- FEDERAL INCOME TAX Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. These differences are primarily due to differing treatments for foreign currency transactions, net operating losses, deferral of losses from wash sales, passive foreign investment companies (PFIC), post-October losses, non-taxable dividends, and discount accretion/premium amortization on debt securities. As of December 31, 2000, the unused capital loss carryforwards that expire in 2007 and 2008, post-October losses that were deferred to January 1, 2001, and as of June 30, 2001, the unrealized appreciation (depreciation), excluding short-term investments, were as follows:
NET CAPITAL POST OCTOBER NET LOSS LOSSES DEFERRED UNREALIZED UNREALIZED APPRECIATION CARRYFORWARDS TO JANUARY 1, 2001 APPRECIATION (DEPRECIATION) (DEPRECIATION) ------------- ------------------ ------------ -------------- -------------- Common Stock Fund....................... $ -- $ -- $139,974,985 $(37,904,367) $102,070,618 Growth Fund............................. -- -- 355,154,361 (75,161,289) 279,993,072 International Stock Fund................ -- 3,219,216 9,272,337 (12,103,829) (2,831,492) Special Fund............................ -- -- 110,347,135 (59,083,471) 51,263,664 Small Cap Fund.......................... -- 16,383,766 101,877,256 (24,871,261) 77,005,995 Real Estate Equity Fund................. 7,485,840 498,523 76,428,147 (1,495,453) 74,932,694 Technology Fund......................... -- 43,859 1,493,100 (574,398) 918,702 Strategic Value Fund.................... -- 14,165 7,594,326 (737,614) 6,857,712 Balanced Fund........................... -- 8,325,669 116,079,116 (35,761,288) 80,317,828 Short Term Bond Fund.................... 330,002 2,830 665,981 (59,815) 606,166 Fixed Income Securities Fund............ 14,910,886 -- 8,137,853 (2,515,927) 5,621,926 National Municipal Bond Fund............ 47,911 17,662 311,012 (55,062) 255,950 Oregon Municipal Bond Fund.............. -- 27,604 14,964,733 (2,389,580) 12,575,153 High Yield Fund......................... 2,583,996 111,749 2,330,501 (5,126,946) (2,796,445)
101 103 NOTES TO FINANCIAL STATEMENTS -------------------------------------------------------------------------------- (UNAUDITED) NOTE 4 -- CAPITAL STOCK ACTIVITY (IN THOUSANDS)
COMMON STOCK FUND GROWTH FUND INTERNATIONAL STOCK FUND --------------------------- --------------------------- --------------------------- SIX MONTHS SIX MONTHS SIX MONTHS ENDED YEAR ENDED YEAR ENDED YEAR JUNE 30, ENDED JUNE 30, ENDED JUNE 30, ENDED 2001 DECEMBER 31, 2001 DECEMBER 31, 2001 DECEMBER 31, (UNAUDITED) 2000 (UNAUDITED) 2000 (UNAUDITED) 2000 ------------ ------------ ------------ ------------ ------------ ------------ SHARES: Shares sold.................... 6,457 9,768 3,755 9,514 6,372 8,814 Shares reinvested for dividends and distributions............ -- 3,643 -- 5,075 -- 1,893 ------------ ------------ ------------ ------------ ------------ ------------ 6,457 13,411 3,755 14,589 6,372 10,707 Shares redeemed................ (8,194) (9,840) (6,359) (10,871) (6,265) (9,327) ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease)........ (1,737) 3,571 (2,604) 3,718 107 1,380 ============ ============ ============ ============ ============ ============ AMOUNTS: Sales.......................... $ 145,276* $ 286,558 $ 135,506 $ 486,166 $ 87,390 $ 176,958 Reinvestment of dividends and distributions................ -- 91,883 -- 215,989 -- 27,529 ------------ ------------ ------------ ------------ ------------ ------------ 145,276 378,441 135,506 702,155 87,390 204,487 Less redemptions............... (182,233) (287,978) (237,583) (547,223) (85,777) (182,721) ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease)........ $ (36,957) $ 90,463 $ (102,077) $ 154,932 $ 1,613 $ 21,766 ============ ============ ============ ============ ============ ============ Capital stock authorized....... 100 million 100 million 100 million Par value...................... no par $ 0.01 no par
SHORT TERM FIXED INCOME BALANCED FUND BOND FUND SECURITIES FUND --------------------------- --------------------------- --------------------------- SIX MONTHS SIX MONTHS SIX MONTHS ENDED YEAR ENDED YEAR ENDED YEAR JUNE 30, ENDED JUNE 30, ENDED JUNE 30, ENDED 2001 DECEMBER 31, 2001 DECEMBER 31, 2001 DECEMBER 31, (UNAUDITED) 2000 (UNAUDITED) 2000 (UNAUDITED) 2000 ------------ ------------ ------------ ------------ ------------ ------------ SHARES: Shares sold.................... 6,954 15,974 1,540 2,376 9,412 8,755 Shares reinvested for dividends and distributions............ 658 3,707 120 205 901 1,721 ------------ ------------ ------------ ------------ ------------ ------------ 7,612 19,681 1,660 2,581 10,313 10,476 Shares redeemed................ (7,294) (12,719) (1,214) (2,933) (7,122) (13,214) ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease)...... 318 6,962 446 (352) 3,191 (2,738) ============ ============ ============ ============ ============ ============ AMOUNTS: Sales.......................... $ 153,954 $ 398,071 $ 13,012 $ 19,516 $ 123,460 $ 109,490 Reinvestment of dividends and distributions................ 14,009 89,921 1,012 1,688 11,801 21,530 ------------ ------------ ------------ ------------ ------------ ------------ 167,963 487,992 14,024 21,204 135,261 131,020 Less redemptions............... (160,175) (317,044) (10,247) (24,086) (93,263) (165,136) ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease)........ $ 7,788 $ 170,948 $ 3,777 $ (2,882) $ 41,998 $ (34,116) ============ ============ ============ ============ ============ ============ Capital stock authorized....... 100 million 100 million 200 million Par value...................... no par $ 0.01 $ 0.01
* Includes $17,070 of securities received in an in-kind transfer. 102 104 NOTES TO FINANCIAL STATEMENTS -------------------------------------------------------------------------------- (UNAUDITED)
SPECIAL FUND SMALL CAP FUND REAL ESTATE EQUITY FUND --------------------------- --------------------------- --------------------------- SIX MONTHS SIX MONTHS SIX MONTHS ENDED YEAR ENDED YEAR ENDED YEAR JUNE 30, ENDED JUNE 30, ENDED JUNE 30, ENDED 2001 DECEMBER 31, 2001 DECEMBER 31, 2001 DECEMBER 31, (UNAUDITED) 2000 (UNAUDITED) 2000 (UNAUDITED) 2000 ------------ ------------ ------------ ------------ ------------ ------------ SHARES: Shares sold.................... 6,779 14,843 9,805 19,208 7,752 19,858 Shares reinvested for dividends and distributions............ -- 9,709 -- 1,960 468 1,001 ------------ ------------ ------------ ------------ ------------ ------------ 6,779 24,552 9,805 21,168 8,220 20,859 Shares redeemed................ (7,127) (13,081) (6,459) (11,761) (4,472) (13,039) ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease)........ (348) 11,471 3,346 9,407 3,748 7,820 ============ ============ ============ ============ ============ ============ AMOUNTS: Sales.......................... $ 155,035 $ 519,898 $ 233,739 $ 586,333 $ 137,167 $ 326,388 Reinvestment of dividends and distributions................ -- 258,830 -- 51,634 8,344 16,814 ------------ ------------ ------------ ------------ ------------ ------------ 155,035 778,728 233,739 637,967 145,511 343,202 Less redemptions............... (162,177) (455,483) (153,493) (358,397) (78,715) (213,561) ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease)........ $ (7,142) $ 323,245 $ 80,246 $ 279,570 $ 66,796 $ 129,641 ============ ============ ============ ============ ============ ============ Capital stock authorized....... 100 million 100 million 100 million Par value...................... $ 0.01 no par no par TECHNOLOGY FUND STRATEGIC VALUE FUND --------------------------- --------------------------- SIX MONTHS SIX MONTHS ENDED OCTOBER 27 ENDED OCTOBER 27 JUNE 30, THROUGH JUNE 30, THROUGH 2001 DECEMBER 31, 2001 DECEMBER 31, (UNAUDITED) 2000 (UNAUDITED) 2000 ------------ ------------ ------------ ------------ SHARES: Shares sold.................... 1,879 530 5,881 850 Shares reinvested for dividends and distributions............ -- 1 -- 1 ------------ ------------ ------------ ------------ 1,879 531 5,881 851 Shares redeemed................ (322) (30) (1,096) (3) ------------ ------------ ------------ ------------ Net increase (decrease)........ 1,557 501 4,785 848 ============ ============ ============ ============ AMOUNTS: Sales.......................... $ 13,641 $ 5,054 $ 75,111 $ 8,719 Reinvestment of dividends and distributions................ -- 4 -- 13 ------------ ------------ ------------ ------------ 13,641 5,058 75,111 8,732 Less redemptions............... (2,305) (277) (14,186) (33) ------------ ------------ ------------ ------------ Net increase (decrease)........ $ 11,336 $ 4,781 $ 60,925 $ 8,699 ============ ============ ============ ============ Capital stock authorized....... 100 million 100 million Par value...................... no par no par NATIONAL MUNICIPAL OREGON MUNICIPAL BOND FUND BOND FUND --------------------------- --------------------------- SIX MONTHS SIX MONTHS ENDED YEAR ENDED YEAR JUNE 30, ENDED JUNE 30, ENDED 2001 DECEMBER 31, 2001 DECEMBER 31, (UNAUDITED) 2000 (UNAUDITED) 2000 ------------ ------------ ------------ ------------ SHARES: Shares sold.................... 201 363 5,942 7,011 Shares reinvested for dividends and distributions............ 23 43 693 1,363 ------------ ------------ ------------ ------------ 224 406 6,635 8,374 Shares redeemed................ (252) (388) (4,027) (7,836) ------------ ------------ ------------ ------------ Net increase (decrease)........ (28) 18 2,608 538 ============ ============ ============ ============ AMOUNTS: Sales.......................... $ 1,982 $ 3,420 $ 72,642 $ 82,023 Reinvestment of dividends and distributions................ 222 409 8,448 15,992 ------------ ------------ ------------ ------------ 2,204 3,829 81,090 98,015 Less redemptions............... (2,482) (3,695) (49,102) (91,548) ------------ ------------ ------------ ------------ Net increase (decrease)........ $ (278) $ 134 $ 31,988 $ 6,467 ============ ============ ============ ============ Capital stock authorized....... 100 million 100 million Par value...................... $ 0.01 no par HIGH YIELD COLUMBIA DAILY FUND INCOME COMPANY --------------------------- --------------------------- SIX MONTHS SIX MONTHS ENDED YEAR ENDED YEAR JUNE 30, ENDED JUNE 30, ENDED 2001 DECEMBER 31, 2001 DECEMBER 31, (UNAUDITED) 2000 (UNAUDITED) 2000 ------------ ------------ ------------ ------------ SHARES: Shares sold.................... 15,023 7,960 799,571 1,917,314 Shares reinvested for dividends and distributions............ 611 613 28,642 68,861 ------------ ------------ ------------ ------------ 15,634 8,573 828,213 1,986,175 Shares redeemed................ (6,539) (5,400) (801,712) (1,953,313) ------------ ------------ ------------ ------------ Net increase (decrease)........ 9,095 3,173 26,501 32,862 ============ ============ ============ ============ AMOUNTS: Sales.......................... $ 137,399 $ 72,120 $ 799,571 $ 1,917,314 Reinvestment of dividends and distributions................ 5,551 5,546 28,642 68,861 ------------ ------------ ------------ ------------ 142,950 77,666 828,213 1,986,175 Less redemptions............... (59,730) (49,142) (801,712) (1,953,313) ------------ ------------ ------------ ------------ Net increase (decrease)........ $ 83,220 $ 28,524 $ 26,501 $ 32,862 ============ ============ ============ ============ Capital stock authorized....... 100 million 2 billion Par value...................... no par $ 0.001
103 105 NOTES TO FINANCIAL STATEMENTS -------------------------------------------------------------------------------- (UNAUDITED) NOTE 5 -- TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES The amounts of fees and expenses described below are shown on each Fund's statement of operations. Columbia Funds Management Company (CFMC) manages each Fund, and Columbia Trust Company (CTC) is the transfer and shareholder servicing agent. CFMC and CTC are indirect, wholly owned subsidiaries of FleetBoston Financial Corporation, a publicly owned multi-bank holding company registered under the Bank Holding Company Act of 1956. Investment management fees were paid by each Fund to CFMC. The fees are based on the following annual rates of average daily net assets:
FEES ON FEES ON FEES ON FEES ON NET ASSETS NET ASSETS NET ASSETS NET ASSETS FIRST NEXT NEXT EXCEEDING $200 MILLION $300 MILLION $500 MILLION $1 BILLION ------------ ------------ ------------ ------------ Common Stock Fund.......................................... 0.60 of 1% 0.60 of 1% 0.60 of 1% 0.60 of 1% Growth Fund................................................ 0.75 of 1% 0.625 of 1% 0.50 of 1% 0.50 of 1% International Stock Fund................................... 1.00 of 1% 1.00 of 1% 1.00 of 1% 1.00 of 1% Special Fund............................................... 1.00 of 1% 1.00 of 1% 0.75 of 1% 0.75 of 1% Small Cap Fund............................................. 1.00 of 1% 1.00 of 1% 1.00 of 1% 1.00 of 1% Real Estate Equity Fund.................................... 0.75 of 1% 0.75 of 1% 0.75 of 1% 0.75 of 1% Technology Fund............................................ 1.00 of 1% 1.00 of 1% 1.00 of 1% 1.00 of 1% Strategic Value Fund....................................... 0.75 of 1% 0.75 of 1% 0.75 of 1% 0.75 of 1% Balanced Fund.............................................. 0.50 of 1% 0.50 of 1% 0.50 of 1% 0.50 of 1% Short Term Bond Fund....................................... 0.50 of 1% 0.50 of 1% 0.50 of 1% 0.50 of 1% Fixed Income Securities Fund............................... 0.50 of 1% 0.50 of 1% 0.50 of 1% 0.50 of 1% National Municipal Bond Fund............................... 0.50 of 1% 0.50 of 1% 0.50 of 1% 0.50 of 1% Oregon Municipal Bond Fund................................. 0.50 of 1% 0.50 of 1% 0.50 of 1% 0.50 of 1% High Yield Fund............................................ 0.60 of 1% 0.60 of 1% 0.60 of 1% 0.60 of 1% Columbia Daily Income Company.............................. 0.50 of 1% 0.50 of 1% 0.45 of 1% 0.40 of 1%
Directors' fees and expenses were paid directly by each Fund to directors having no affiliation with the Funds other than in their capacity as directors. Other officers and directors received no compensation from the Funds. Transfer agent fees were paid by each Fund to CTC for services incidental to issuance and transfer of shares, maintaining shareholder lists, and issuing and mailing distributions and reports. The Funds also paid CTC for certain direct shareholder servicing and accounting costs. For the six months ended June 30, 2001, CFMC has voluntarily agreed to reimburse expenses, after fees paid indirectly, in excess of 1.68% for the Technology Fund. For the three years commencing November 1, 2000 and ending October 31, 2003, CFMC has contractually agreed to reimburse expenses, after fees paid indirectly, in excess of 0.75% for the Short Term Bond Fund. For the year ended December 31, 2001, CFMC has contractually agreed to reimburse expenses, after fees paid indirectly, in excess of 0.65% for the National Municipal Bond Fund. 104 106 MUTUAL FUND SHARES ARE NOT INSURED BY THE FDIC OR ANY OTHER GOVERNMENTAL ENTITY; ARE NOT DEPOSITS OR OTHER OBLIGATIONS OF, OR GUARANTEED BY, ANY BANK; AND INVOLVE RISKS, INCLUDING LOSS OF PRINCIPAL. 107 [COLUMBIA FUNDS LOGO & ART] COLUMBIA FUNDS 1301 S.W. FIFTH AVENUE, PORTLAND, OREGON 97201 ---------------------------------------------- DIRECTORS ---------------------------------------------- JAMES C. GEORGE J. JERRY INSKEEP, JR. PATRICK J. SIMPSON RICHARD L. WOOLWORTH INVESTMENT ADVISOR ---------------------------------------------- COLUMBIA FUNDS MANAGEMENT COMPANY 1300 S.W. SIXTH AVENUE PORTLAND, OREGON 97201 LEGAL COUNSEL ---------------------------------------------- STOEL RIVES LLP 900 S.W. FIFTH AVENUE, SUITE 2300 PORTLAND, OREGON 97204-1268 TRANSFER AGENT ---------------------------------------------- COLUMBIA TRUST COMPANY 1301 S.W. FIFTH AVENUE PORTLAND, OREGON 97201 THIS INFORMATION MUST BE PRECEDED OR ACCOMPANIED BY A CURRENT PROSPECTUS. THE MANAGERS' VIEWS CONTAINED IN THIS REPORT ARE SUBJECT TO CHANGE AT ANY TIME, BASED ON MARKET AND OTHER CONSIDERATIONS. PORTFOLIO CHANGES SHOULD NOT BE CONSIDERED RECOMMENDATIONS FOR ACTION BY INDIVIDUAL INVESTORS. FUNDS DISTRIBUTED BY PFPC DISTRIBUTORS, INC.