N-30D 1 f82812anv30d.txt COLUMBIA FUNDS SEMIANNUAL REPORT DATED 06/30/02 [COLUMBIA FUNDS LOGO] COLUMBIA FUNDS 2002 SEMIANNUAL REPORT COLUMBIA COMMON STOCK FUND COLUMBIA GROWTH FUND COLUMBIA INTERNATIONAL STOCK FUND COLUMBIA SPECIAL FUND COLUMBIA SMALL CAP FUND COLUMBIA REAL ESTATE EQUITY FUND COLUMBIA TECHNOLOGY FUND COLUMBIA STRATEGIC VALUE FUND COLUMBIA BALANCED FUND COLUMBIA SHORT TERM BOND FUND COLUMBIA FIXED INCOME SECURITIES FUND COLUMBIA NATIONAL MUNICIPAL BOND FUND COLUMBIA OREGON MUNICIPAL BOND FUND COLUMBIA HIGH YIELD FUND COLUMBIA DAILY INCOME COMPANY TABLE OF CONTENTS -------------------------------------------------------------------------------- COLUMBIA FUNDS SEMIANNUAL REPORT JUNE 30, 2002 INTRODUCTION 1 TO OUR SHAREHOLDERS ----------------------------------------------------------------------------- INVESTMENT 4 COLUMBIA COMMON STOCK FUND REVIEWS 6 COLUMBIA GROWTH FUND 8 COLUMBIA INTERNATIONAL STOCK FUND 10 COLUMBIA SPECIAL FUND 12 COLUMBIA SMALL CAP FUND 14 COLUMBIA REAL ESTATE EQUITY FUND 16 COLUMBIA TECHNOLOGY FUND 18 COLUMBIA STRATEGIC VALUE FUND 20 COLUMBIA BALANCED FUND 22 COLUMBIA SHORT TERM BOND FUND 24 COLUMBIA FIXED INCOME SECURITIES FUND 26 COLUMBIA NATIONAL MUNICIPAL BOND FUND 28 COLUMBIA OREGON MUNICIPAL BOND FUND 30 COLUMBIA HIGH YIELD FUND 32 COLUMBIA DAILY INCOME COMPANY ----------------------------------------------------------------------------- FINANCIAL 33 FINANCIAL HIGHLIGHTS INFORMATION 41 SCHEDULES OF INVESTMENTS 92 STATEMENTS OF ASSETS AND LIABILITIES 94 STATEMENTS OF OPERATIONS 96 STATEMENTS OF CHANGES IN NET ASSETS 98 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 85-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. TO OUR SHAREHOLDERS -------------------------------------------------------------------------------- [CONSUMER CONFIDENCE AT LOW LEVELS LINE GRAPH]
CONSUMER CONFIDENCE INDEX ------------------------- 25-Jan '00 144.7 140.8 137.1 137.7 144.7 27-Jun 139.2 143.0 140.8 142.5 135.8 132.6 128.6 30-Jan '01 115.7 109.2 116.9 109.9 116.1 26-Jun 118.9 116.3 114.0 97.0 85.3 84.9 94.6 29-Jan '02 97.8 95.0 110.7 108.5 110.3 25-Jun 106.3
--------------- Source: The Conference Board We are pleased to present the Columbia Funds 2002 Semiannual Report. In the following pages, you will find detailed financial information for the 15 Columbia Funds for the six months ended June 30, 2002. In addition, a discussion of each fund's investment activity for the first half of the year is provided. First, however, we'd like to offer an overview of the market environment in which the Funds performed. INVESTMENT CLIMATE MARRED BY ACCOUNTING CONTROVERSY The year 2002 began on a strong note with a continuation of a market rally from the closing weeks of 2001. However, the markets resumed a downward trend as the first six months progressed. Aggressive accounting practices that upended Enron and Arthur Anderson were joined by new financial reporting controversies at some of the largest U.S. companies. Such revelations have contributed to a shaky market as investors have lost confidence in corporate financial disclosures, accounting and audit practices, executive compensation, and the due diligence of professional investors and analysts. Plus, the corporate scandals have exacerbated concerns already weighing on investors, such as the threat of further terrorist attacks and the seemingly irreconcilable hostilities in the Middle East. Despite these worries, the economy appears to be on track for a moderate recovery. Underlying economic fundamentals are improving, albeit more slowly than anticipated. Leading economic indicators -- such as housing and construction permits, orders for durable goods and manufacturing surveys -- continue to support expectations for improving growth. Corporate profits are looking up and should continue to do so, with consumer demand growing, inventories declining and some excess capacity reduced. In addition, new unemployment claims continue to decrease, signaling that a gradual recuperation in employment conditions is underway. While the U.S. economy is on track for a modest recovery, global economies are also gaining ground, though global markets have been set back due to the turmoil in the U.S. The U.S. dollar has weakened as capital flows have moved to markets with lower valuations and improving prospects and as the Federal Reserve Board (the "Fed") has signaled that U.S. monetary policy is on hold. Prospects in Asia, including Japan, seem to be showing particular improvement. VOLATILITY IN THE EQUITY MARKETS Most areas of the equity markets have been challenging for investors so far this year. In a series of declines at the end of June, the S&P 500 approached lows not 1 TO OUR SHAREHOLDERS -------------------------------------------------------------------------------- [VOLATILITY IN THE BROAD STOCK MARKET LINE GRAPH]
S&P 500 INDEX ------------- 2-Jan '02 1154.67 1165.27 1172.51 1164.89 1160.71 1155.14 1156.55 1145.60 1138.41 1146.19 1127.57 1138.88 1127.58 1119.31 1128.18 1132.15 1133.28 1133.06 1100.64 1113.57 31-Jan '02 1130.20 1122.20 1094.44 1090.02 1083.51 1080.17 1096.22 1111.94 1107.50 1118.51 1116.48 1104.18 1083.34 1097.98 1080.95 1089.84 1109.43 1109.38 1109.89 28-Feb '02 1106.73 1131.78 1153.84 1146.14 1162.77 1157.54 1164.31 1168.26 1165.58 1154.09 1153.04 1166.16 1165.55 1170.29 1151.85 1153.59 1148.70 1131.87 1138.49 1144.58 28-Mar '02 1147.39 1146.54 1136.76 1125.40 1126.34 1122.73 1125.29 1117.80 1130.47 1103.69 1111.01 1102.55 1128.37 1126.07 1124.47 1125.17 1107.83 1100.96 1093.14 1091.48 1076.32 1065.45 30-Apr '02 1076.92 1086.46 1084.56 1073.43 1052.67 1049.49 1088.85 1073.01 1054.99 1074.56 1097.28 1091.07 1098.23 1106.23 1091.88 1079.88 1086.02 1097.08 1083.82 1074.55 1067.66 1064.66 31-May '02 1067.14 1040.68 1040.69 1049.90 1029.15 1027.53 1030.74 1013.60 1020.26 1009.56 1007.27 1036.17 1037.11 1019.99 1006.29 989.13 992.72 976.14 973.53 990.64 28-Jun '02 989.82
seen since September 11th; for the six months ending June 30, the Index returned -13.16%. As large cap stocks suffered throughout the first half of the year, smaller stocks fared slightly better: the Russell 2000 Index was down only -4.70%, helped by small cap value stocks. The markets continued this downward trend early in the third quarter as major equity indices dipped below their post-9/11 lows. Certain areas of the equity markets have provided some relief from market volatility. International markets, as mentioned, have fared slightly better than the broad U.S. market, and the MSCI EAFE Index returned -1.38% for the first half of the year. The real estate sector has benefited from low interest rates and investors' preference for high dividend yields, and the NAREIT Index returned 13.68% for the period. HIGH QUALITY BONDS BENEFIT FROM STOCK MARKET TURMOIL Since making aggressive interest rate cuts in 2001, the Fed has taken little action so far this year, adopting a neutral bias and remaining cautious about raising interest rates. As expectations for the Fed to raise interest rates moved out, interest rates fell, bond prices moved higher, and Treasuries were the primary beneficiaries, as investors fled from stocks to the stability of higher quality bonds. For the six months ended June 30, investment-grade bonds, as represented by the Lehman Aggregate Bond Index, returned 3.79%. Non-investment-grade bonds, however, suffered in the period due to the corporate accounting scandals and returned - 4.31%, as measured by the Merrill Lynch U.S. High Yield Index. AN OUTLOOK FOR THE INVESTMENT ENVIRONMENT Recent proposals to institute new legislation and reforms on corporate accountability from President Bush, the Securities & Exchange Commission, and the Financial Accounting Standards Board have yet to stabilize the markets. The new requirement for CEOs to swear to the accuracy of their financial reports, effective August 14, is leading to market tension and some soul searching by corporate executives. Despite the pessimism in the markets, the second quarter earnings season has so far seen some fairly good results. Economic fundamentals are gradually improving, equity valuations have become much more reasonable, and technical indicators of sentiment are consistent with levels historically seen at market bottoms. In addition, it is likely that the Fed will not risk raising interest rates until the equity markets stabilize and the economic recovery appears firmly on track, pushing any tightening move potentially into 2003. Indeed, there has been some speculation that the Fed 2 TO OUR SHAREHOLDERS -------------------------------------------------------------------------------- may ease rates further in the near-term to help the economy avoid a "double dip" recession. Fiscal policy, however, may begin to put pressure on interest rates as tax revenues decline and Congress passes new spending measures. One concern is that falling stock prices will convince consumers to stop spending and businesses to defer expansion plans. Such a scenario could hamper further improvements in economic growth and cause the recovery to lose momentum. With the market deeply oversold and investor sentiment at levels generally seen at market bottoms, we believe some favorable investment opportunities should arise. As economic indicators appear to be stable and improving, our long-term outlook for stocks is constructive. VISIT US ONLINE As always, you can find the Investment Team's latest views of the market environment at www.columbiafunds.com. Once online, you can also find news about recent developments at Columbia Funds and access your account information over a secure connection. In addition, educational articles and planning calculators can help guide you as you manage your investments with us. If you have any questions about the Web site or about your account, please contact one of our Investor Services Representatives at 1-800-547-1707 (from 7:30 a.m. to 5:00 p.m., Pacific Standard Time). If you've been managing significant assets on your own and would like to receive some professional assistance, please inquire about a Private Management Account (PMA). Through this fee-based service, Columbia can manage your mutual fund account of $150,000 or more on your behalf. For more information about a PMA, please call toll-free 1-866-651-4563. Thank you for your continued confidence in Columbia Funds. We look forward to serving you in the months and years ahead. Sincerely, /s/ Jeff B. Curtis Jeff B. Curtis President Columbia Funds Management Company /s/ Richard J. Johnson Richard J. Johnson Chief Investment Officer Columbia Funds Management Company August 2002 3 INVESTMENT REVIEWS -------------------------------------------------------------------------------- COLUMBIA COMMON STOCK FUND GROWTH OF $10,000 OVER 10 YEARS [LINE GRAPH]
CCSF S&P ---- --- 6/30/92 10000.00 10000.00 6/30/93 11906.00 11363.00 6/30/94 12404.00 11523.00 6/30/95 14752.00 14527.00 6/30/96 18690.00 18306.00 6/30/97 23879.00 24656.00 6/30/98 29753.00 32095.00 6/30/99 36941.00 39397.00 6/30/00 43691.00 42253.00 6/30/01 34489.00 35982.00 6/30/02 26997.00 29509.00
AVERAGE ANNUAL TOTAL RETURNS As of June 30, 2002
CCSF S&P 500 ------ ------- 1 Year -21.73% -17.99% 5 Years 2.49% 3.66% 10 Years 10.44% 11.43%
--------------- Past performance is not predictive of future results. The S&P 500 Index is an unmanaged index generally considered representative of the U.S. stock market. BEAR CONTINUES TO CLAW After beginning the year 2002 with relatively flat returns in the first quarter, the stock market resumed its volatile path in the second quarter as investor confidence was dealt several blows. In addition to continued threats of terrorism and hostilities in the Middle East, investors were barraged by bad news regarding corporate accounting and the quality of reported earnings. In this uncertain environment, Columbia Common Stock Fund returned -14.92% for the six months ended June 30, 2002. In comparison, the S&P 500 Index returned -13.16%. POSITIVE ECONOMIC NEWS OVERSHADOWED The economy appeared to be on track for a modest recovery as corporate profits and economic activity accelerated in the first quarter of 2002. However, despite these positive developments in fundamentals, the economic recovery was overshadowed by concerns over the quality of reported earnings and corporate governance. Larger cap companies suffered more than smaller cap companies, as valuations continued to compress for the former. As the list of suspected culprits of accounting irregularities grew in the second quarter, the market responded with one of its worst quarters since World War II, with the S&P 500 Index shedding -13.40%. TECH, TELECOM AND MEDIA STRUGGLE The technology, telecommunications and media sectors struggled throughout much of the period and had an overall negative impact on Fund performance. Adelphia Communications was our worst holding in the media area. The position was sold due to reports that the management group of this cable operator had deceived investors and, therefore, had lost all credibility. In addition, Tyco International, a diversified industrial holding, was a very weak performer in the first half of the year. Tyco is yet another company where it appears that management has misled shareholders. By taking early action in January, however, we were able to mitigate losses to the portfolio: we reduced our holdings when the stock was valued in the mid-$50 range, due to concerns over the generation of cash flow at the company. DEFENSIVE ISSUES MAKE GAINS Despite a number of disappointments during the period, the Fund did benefit from certain defensive holdings. For instance, Raytheon outperformed nicely in the first 4 INVESTMENT REVIEWS -------------------------------------------------------------------------------- part of the year. A provider of electronic goods for the defense industry, as well as for commercial markets, Raytheon is benefiting from rising defense budgets and an increasing ability to generate strong cash flow. In the finance industry, Bank of America maintained its status as a stalwart holding. The company continued to show strong earnings and dividend yield as a steep yield curve and inwardly focused management team continued to "block and tackle" in a relatively decent environment for financial stocks. ON TRACK FOR RECOVERY While the pace of the anticipated rebound can be debated, we continue to believe that the economy is on track for a modest recovery. Therefore, we are seeking companies that are well positioned to benefit from revitalized U.S. and global economies. We have been adding to companies and industries that can benefit from a weaker dollar, such as multinational firms with significant operations abroad. We are also maintaining a lower weighted average market cap than our benchmark index, believing that smaller cap issues will outpace the largest cap companies. Until investor confidence stabilizes, however, it is likely that the markets will remain volatile. Guy W. Pope On behalf of the Columbia Investment Team TOP TEN HOLDINGS % of Net Assets
6/30/02 12/31/01 Pfizer, Inc. 3.9 3.5 Citigroup, Inc. 3.7 4.5 Wal-Mart Stores, Inc. 3.1 2.5 General Electric Co. 2.5 3.8 Microsoft Corp. 2.5 3.2 Exxon Mobil Corp. 2.4 2.7 Bank of America Corp. 2.4 1.7 Pharmacia Corp. 2.3 1.4 American Express Co. 2.1 1.5 American International Group, Inc. 1.9 1.9
------------------------ TOP FIVE SECTORS % of Net Assets
6/30/02 12/31/01 Financial Services 22.7 19.0 Consumer Discretionary & Services 18.7 15.1 Health Care 16.1 14.9 Technology 9.9 17.0 Other/Multi-Sector Companies 8.1 10.5
5 INVESTMENT REVIEWS -------------------------------------------------------------------------------- COLUMBIA GROWTH FUND GROWTH OF $10,000 OVER 20 YEARS [LINE GRAPH]
COLUMBIA GROWTH FUND S&P 500 INDEX RUSSELL 1000 GROWTH -------------------- ------------- ------------------- 6/30/92 10000.00 10000.00 10000.00 6/30/93 12315.00 11363.00 10903.00 6/30/94 12554.00 11523.00 10875.00 6/30/95 15519.00 14527.00 14193.00 6/30/96 19705.00 18306.00 18142.00 6/30/97 24428.00 24656.00 23824.00 6/30/98 32660.00 32095.00 31298.00 6/30/99 40123.00 39397.00 39836.00 6/30/00 48745.00 42253.00 50062.00 6/30/01 35014.00 35982.00 31955.00 6/30/02 24553.00 29509.00 23494.00
AVERAGE ANNUAL TOTAL RETURNS As of June 30, 2002
RUSSELL 1000 S&P CGF GROWTH 500 ------ ------- ------- 1 Year -29.88% -26.48% -17.99% 5 Years 0.10% -0.28% 3.66% 10 Years 9.40% 8.92% 11.43%
--------------- Past performance is not predictive of future results. The S&P 500 Index 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). GROWTH STOCKS STRUGGLE IN FIRST HALF During the six months ended June 30, 2002, growth stocks plummeted. Continued disappointment in technology spending trends, persistent terrorist threats, and -- most troubling -- the uprooting of confidence in the capital markets have depressed share prices in sickening fashion. During the period, the Fund declined -23.13%, while the Russell 1000 Growth Index returned -20.78% and the S&P 500 Index returned -13.16%. CORPORATIONS COME UNDER INCREASED SCRUTINY Following the aftermath of the 9/11 tragedy, the overall outlook for the country began to improve, and the stock market responded. A market rally was supported into early 2002 by significant monetary and fiscal stimulus, evidence of an economic rebound, military success in Afghanistan, and a sense that disparate interests at home and abroad were working together to solve economic and terrorist challenges. However, the Enron debacle and the disclosure of other corporate deceptions contributed to widespread paranoia over the credibility of the U.S. system of financial reporting, auditing and other checks. The markets reflected increased unease with greater volatility, as some indices even began to flirt with post-9/11 lows. Companies that suffered most from "Enronitis" included those whose growth has been supported by acquisitions and those that had depreciated large capital investments. Investors sought refuge in what they considered to be "easy-to-understand" organic growth stocks and "safe" value stocks. EXPOSURE TO TYCO HURTS PERFORMANCE The greatest negative impact on the Fund's performance was Tyco International, which succeeded Enron as the alleged poster child for aggressive, and perhaps suspect, accounting practices. While the SEC thoroughly investigated the company in 2000 and has examined subsequent acquisitions, suspicions have crushed the stock's valuation. Tyco's new CEO and expanded board should provide some relief on the issue of credibility and enable the stock to recover. Cyclical companies whose prospects for profit rebounds have been delayed -- such as Flextronics, Siebel Systems and Clear Channel Communications -- also hurt Fund performance in the period. However, we believe these stocks should perform well as the economic recovery leads to an improvement in corporate discretionary spending. 6 INVESTMENT REVIEWS -------------------------------------------------------------------------------- TOP TEN HOLDINGS % of Net Assets
6/30/02 12/31/01 Microsoft Corp. 5.5 5.0 Pfizer, Inc. 5.3 4.4 Wal-Mart Stores, Inc. 3.7 2.7 General Electric Co. 3.4 4.5 Baxter International, Inc. 2.6 2.4 Johnson & Johnson 2.5 1.0 Viacom, Inc. (Class B) 2.4 1.5 Pharmacia Corp. 2.2 1.7 Coca-Cola Co. 2.1 -- American International Group, Inc. 2.1 2.2
------------------------ TOP FIVE SECTORS % of Net Assets
6/30/02 12/31/01 Consumer Discretionary & Services 24.8 19.7 Health Care 22.4 20.3 Technology 19.5 26.9 Financial Services 13.6 8.9 Consumer Staples 7.0 2.8
In the difficult first half of 2002, the Fund's performance was supported by competitively strong companies that have franchises, are gaining market share, and that serve the consumer primarily. Such companies include Intuit, Electronic Arts, Kraft Foods, Kellogg and AutoZone. We sold our holdings in Kellogg during the period, taking profits. As of June 30, we remain optimistic about the growth prospects of the remaining companies. MARKETS IN TURMOIL The investment environment is, frankly, in turmoil. Stocks have been in a persistent and ugly decline, and confidence in the integrity of U.S. corporations, reporting and markets is very low. In addition, investors increasingly worry that the weakness in the stock market will undermine the economic recovery in place. Indeed, it appears as though we are experiencing the complete opposite of the manic euphoria associated with the market peak of early 2000. Nevertheless, there is some cause for optimism. We observe that the market is deeply oversold, investor sentiment is at levels generally seen at market bottoms, mutual fund redemption activity is consistent with historical market troughs, and economic indicators are solid. With companies such as Pfizer, Baxter International, PepsiCo and Johnson & Johnson trading at mid-teen price/earnings ratios (on 2003 estimates), we see some favorable valuation opportunities emerging. Our long-term outlook for stocks remains constructive, and we are cognizant that market bottoms develop when the environment seems most dire. Alexander S. Macmillan Portfolio Manager 7 INVESTMENT REVIEWS -------------------------------------------------------------------------------- COLUMBIA INTERNATIONAL STOCK FUND GROWTH OF $10,000 SINCE INCEPTION [LINE GRAPH]
COLUMBIA INTERNATIONAL STOCK FUND MSCI EAFE INDEX --------------------------------- --------------- 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 12/31/01 20098.00 17384.00 6/30/02 19994.00 17148.00
AVERAGE ANNUAL TOTAL RETURNS As of June 30, 2002
MSCI CISF EAFE ----- ------- 1 Year -8.47% -9.22% 5 Years 1.16% -1.26% Since Inception (10/1/92) 7.33% 5.66%
--------------- 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 For the first half of 2002, Columbia International Stock Fund returned -0.50% versus the -1.38% return of the MSCI EAFE Index. Over the long term, the Fund has returned 7.33% on an average annual basis since its 1992 inception, compared to 5.66% for the Index. SECOND QUARTER ERASES EARLY GAINS After making modest gains in the first three months of the year, international stock markets overall encountered sharp weakness in the second quarter. The distinct weakness in U.S. markets had a pronounced impact on many foreign counterparts, especially in Europe where telecommunications and technology shares were markedly lower. There were, however, some very positive influences on the portfolio, including the strong gains experienced by foreign currencies, primarily in the second quarter. For several years, the strong U.S. dollar (and weaker foreign currencies) depressed the Fund's returns. It appears that we are now in a new environment where exchange rates may support the portfolio's performance. UNDERWEIGHTING EUROPEAN MARKETS Some strategic changes were made to the portfolio in the first quarter of the year and maintained in the second quarter, namely underweighting European markets and emphasizing Asian markets. In Europe, we had strong success with financials (banks and insurance) early in the period. In the second quarter, however, accounting scandals and financial market weakness put pressure on these institutions. Therefore, we have reduced positions slightly and, as of June 30, are maintaining an emphasis in only what appear to be the largest, strongest financial stocks. ASIAN MARKETS PRESENT OPPORTUNITY Throughout the period, we maintained a heavy weighting in Japan, which continues to outperform most other major markets. The Japanese economy continues to suffer from lack of strong political will to effect some structured changes. However, Japan is very sensitive to international economic activity and is benefiting from the global recovery. We believe this cyclical upturn will result in attractive investment opportunities. As of June 30, we are committed to some key blue chip stocks, such as Sony Corp., Honda Motor Co. and Canon. We also have a strong emphasis on 8 INVESTMENT REVIEWS -------------------------------------------------------------------------------- the retailing sector, and some representative holdings include Ito-Yokado, Shimamura and Daimaru. In other Asian markets, we have had a heavy exposure to South Korea. Pacific Corp., the leading Korean cosmetics company, is still the portfolio's largest holding in that country. Earlier this year, we returned to Singapore and, more importantly, Thailand. A research visit to the latter confirmed that a sustainable economic recovery is underway, and we have found some compelling investments. Land & Houses Public Co. is the largest and strongest residential builder in Thailand; with mortgage rates down sharply, construction activity has gathered momentum steadily. Another holding, Big C Supercenter, is a well-placed retailer benefiting from the return of consumer confidence. GLOBAL RECOVERY ANTICIPATED Investors have been tested so far in 2002. While international markets declined in recent months, currency gains have largely offset the losses. We expect international markets to recover in the second half of 2002, as economic growth is picking up globally and is especially improving in Asia. Furthermore, we believe many foreign stock markets will break their recent correlation with the performance of U.S. markets. James M. McAlear Portfolio Manager TOP TEN HOLDINGS % of Net Assets
6/30/02 12/31/01 Royal Bank of Scotland Group plc (United Kingdom) 1.5 1.1 Ito-Yokado Co., Ltd. (Japan) 1.5 1.0 Barclays plc (United Kingdom) 1.4 1.5 Sony Corp. (Japan) 1.4 -- Canon, Inc. (Japan) 1.4 1.3 Novartis AG (Switzerland) 1.4 1.0 AEON Co., Ltd. (Japan) 1.4 1.2 Pacific Corp. (Korea) 1.4 1.2 BNP Paribas (France) 1.3 1.4 BP plc, ADR (United Kingdom) 1.3 1.4
------------------------ TOP FIVE COUNTRIES % of Net Assets
6/30/02 12/31/01 Japan 21.3 17.6 United Kingdom 19.2 25.6 France 6.3 9.4 Switzerland 5.9 6.7 Netherlands 5.5 5.5
9 INVESTMENT REVIEWS -------------------------------------------------------------------------------- COLUMBIA SPECIAL FUND [GROWTH OF $10,000 OVER 10 YEARS LINE GRAPH]
RUSSELL MIDCAP GROWTH COLUMBIA SPECIAL FUND RUSSELL MIDCAP INDEX INDEX --------------------- -------------------- --------------------- 6/30/92 10000.00 10000.00 10000.00 6/30/93 12894.00 12294.00 11864.00 6/30/94 13954.00 12458.00 12110.00 6/30/95 16792.00 15373.00 15310.00 6/30/96 21455.00 18830.00 18922.00 6/30/97 23290.00 23153.00 22254.00 6/30/98 26522.00 28939.00 27599.00 6/30/99 29151.00 32212.00 33205.00 6/30/00 47303.00 36284.00 49332.00 6/30/01 37270.00 36629.00 33788.00 6/30/02 30465.00 33250.00 24889.00
AVERAGE ANNUAL TOTAL RETURNS As of June 30, 2002
Russell Russell Midcap CSF Midcap Growth ------- ------- ------- 1 Year -18.26% -9.22% -26.34% 5 Years 5.52% 7.51% 2.26% 10 Years 11.78% 12.77% 9.55%
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. GROWTH STOCKS UNDERPERFORM Following a rally in the closing weeks of 2001, stocks paused early in 2002 before embarking on a volatile path for the remainder of the first half of the year. In addition, value stocks outperformed growth stocks, continuing a trend that has held for more than two years now. For the six months ended June 30, Columbia Special Fund generated a return of -12.76%. In comparison, the Russell Midcap Growth Index had a return of -19.70% and the Russell Midcap Index produced a return of -5.71%. CORPORATE SCANDAL AFFLICTS MARKET First quarter returns were relatively flat for the broad market, as the market worried that inflated expectations for economic growth were priced into stocks late in 2001. These concerns gave way to greater problems in the second quarter, as investor confidence weakened from a combination of new accounting scandals, earnings misses, terrorist threats and continued hostilities in the Middle East. In addition, the sluggish pace of the economic recovery provided little comfort to investors. In this environment, companies that provided solid performance were those that were able to meet or exceed earnings expectations. In the first quarter, sectors that outperformed included retail, finance and energy. The Fund benefited from an overweighting in retail, as holdings such as TriCon Global and The Limited (which had acquired Intimate Brands) posted gains for the period. Good stock selection in the technology sector also paid off, as names like National Semiconductor and Sungard Data Systems did well. The finance and energy sectors exceeded investor expectations in the quarter, lifting the returns of the indices. The Fund did not benefit fully from the upsurge in finance or energy, as both sectors had been underweighted in the portfolio. As the market environment deteriorated in the second quarter, the Fund continued to experience some compelling returns from the retail, education and health care services sectors. Holdings such as WellPoint Health Networks, Dollar Tree Stores and Intuit contributed positively to the Fund's performance. 10 INVESTMENT REVIEWS -------------------------------------------------------------------------------- TECHNOLOGY MIRED IN BEAR MARKET The technology sector has been in a bear market since March 2000, with earnings and valuations crumbling. Throughout the first half of 2002, the sector again faced earnings misses and downward revisions. Despite the Fund's underweighting in technology, the sector still had an overall negative impact on performance. If earnings visibility can be restored, we believe that good values should appear in some names. The biotechnology sector has also underperformed so far this year. A number of companies have struggled to obtain regulatory approval on new drugs, while others have battled generic competition. Holdings like MedImmune and Genentech were a drag on the portfolio's performance. DIFFICULT ENVIRONMENT LIKELY TO CONTINUE We expect the third quarter to remain challenging for the stock market, but we are optimistic that conditions will improve in the fourth quarter. The market is technically oversold and investor pessimism is high, conditions that often precede a market rally. However, for any sustainable upturn to occur, investors need to regain confidence in the accuracy of corporate financial reports and the durability of the economic recovery. Renewed confidence should lead to increased spending by consumers. Higher demand would then enable businesses to expand and, eventually, contribute to rising earnings estimates. Richard J. Johnson Portfolio Manager TOP TEN HOLDINGS % of Net Assets
6/30/02 12/31/01 HCA, Inc. 3.2 0.8 Intuit, Inc. 3.1 2.1 WellPoint Health Networks, Inc. 3.0 2.5 Caremark Rx, Inc. 2.6 2.2 Laboratory Corporation of America Holdings 2.3 1.9 HealthSouth Corp. 2.3 2.0 Brinker International, Inc. 2.1 1.6 The Gap, Inc. 1.8 -- Electronic Arts, Inc. 1.7 0.5 Hispanic Broadcasting Corp. 1.7 1.0
------------------------ TOP FIVE SECTORS % of Net Assets
6/30/02 12/31/01 Consumer Discretionary & Services 29.3 26.3 Health Care 25.6 35.9 Technology 10.4 14.5 Financial Services 6.3 4.9 Producer Durables 5.4 7.4
11 INVESTMENT REVIEWS -------------------------------------------------------------------------------- COLUMBIA SMALL CAP FUND GROWTH OF $10,000 SINCE INCEPTION [LINE GRAPH]
COLUMBIA SMALL CAP FUND RUSSELL 2000 INDEX RUSSELL 2000 GROWTH INDEX ----------------------- ------------------ ------------------------- 10/1/96 10000.00 10000.00 10000.00 12/31/96 10762.00 10520.00 10026.00 12/31/97 14432.00 12872.00 11324.00 12/31/98 15109.00 12544.00 11464.00 12/31/99 24045.00 15211.00 16404.00 12/31/00 25452.00 14752.00 12723.00 12/31/01 21840.00 15119.00 11548.00 6/30/02 18744.00 14409.00 9547.00
AVERAGE ANNUAL TOTAL RETURNS As of June 30, 2002
RUSSELL RUSSELL 2000 CSCF 2000 GROWTH ------ ------- ------- 1 Year -21.86% -8.59% -25.01% 5 Years 8.89% 4.44% -1.98% Since Inception (10/1/96) 11.65% 6.50% -0.80
--------------- 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. A DIFFICULT FIRST HALF Reflecting a difficult market environment, Columbia Small Cap Fund posted a return of -14.19% for the six months ended June 30, 2002. In comparison, the Russell 2000 Growth Index returned -17.35% and the Russell 2000 Index returned -4.70%. Over the long-term, however, the Fund has outperformed both indices, generating an average annual return of 11.65% since its 1996 inception. For the same period, the Russell 2000 Growth Index and the Russell 2000 Index generated average annual returns of -0.80% and 6.50%, respectively. STOCKS MOVE LOWER The stock market's heady gains at the close of 2001 were not to be repeated in the first half of 2002 as prices were plagued by accounting scandals, earnings misses and terrorist threats. In addition, concerns about the pace of the economic recovery did little to ease investor worries. As the first half of the year came to a close, the Dow Jones Industrial Average had fallen 6.91% to close at 9243.26, while the NASDAQ composite had dropped 24.84%, closing at 1463.21 and approaching lows not seen since the weeks following September 11. The technology sector suffered throughout the period. Technology stocks have been mired in a bear market since March of 2000, as both earnings and valuations have crumbled. During the period, the stock of many technology companies fell on news of missed earnings or as estimates were revised downward. The Fund was underweighted in the sector versus the Russell 2000 Growth Index, which helped its relative performance. If earnings visibility can be restored, good values should appear in some technology stocks going forward. The telecommunications, biotechnology and specialty pharmaceuticals sectors were also hard hit during the period. Telecommunications companies suffered as key players, such as WorldCom (not a portfolio holding), were investigated for accounting irregularities. Biotechnology and specialty pharmaceutical firms battled other concerns, including regulatory approval on new drugs and generic competition. 12 INVESTMENT REVIEWS -------------------------------------------------------------------------------- SOME STEADY PERFORMERS Despite the volatile and difficult environment, several holdings contributed positively to the Fund's performance. The health care services sector was a solid performer throughout the period. Holdings such as Caremark Rx and Express Scripts boosted performance in the first quarter, while Trigon Healthcare and First Health Corp. made their contributions in the second. In addition, the education sector continued to perform well for the Fund, which received positive contributions from Education Management and Strayer Education (which was sold during the second quarter). LOOKING FORWARD We expect the third quarter to remain challenging for the stock market, but are optimistic that conditions will improve later in the year and into 2003. The market is technically oversold and investor pessimism is high; such conditions often precede a market rally. However, for any sustainable upturn to occur, investors must regain confidence in the quality of corporate financial reporting and the durability of the economic recovery. This renewed confidence should lead to increased spending by consumers. An uptick in demand could then enable businesses to expand and, eventually, contribute to rising earnings estimates. Richard J. Johnson Portfolio Manager TOP TEN HOLDINGS % of Net Assets
6/30/02 12/31/01 DaVita, Inc. 2.3 2.4 First Health Group Corp. 2.2 1.6 Caremark Rx, Inc. 2.2 2.0 Entercom Communications Corp. 1.8 1.4 Lamar Advertising Co. 1.8 1.8 Sylvan Learning Systems, Inc. 1.6 1.9 Trigon Healthcare, Inc. 1.6 0.8 Zale Corp. 1.4 1.9 Willis Group Holdings Ltd. 1.4 0.8 Mid Atlantic Medical Services, Inc. 1.4 --
------------------------ TOP FIVE SECTORS % of Net Assets
6/30/02 12/31/01 Health Care 25.5 32.2 Consumer Discretionary & Services 25.5 24.2 Producer Durables 10.4 7.2 Technology 8.0 17.0 Material & Processing 6.8 3.9
13 INVESTMENT REVIEWS -------------------------------------------------------------------------------- COLUMBIA REAL ESTATE EQUITY FUND GROWTH OF $10,000 SINCE INCEPTION [LINE GRAPH]
COLUMBIA REAL ESTATE EQUITY FUND NAREIT INDEX -------------------------------- ------------ 4/01/94 10000 10000 12/31/94 10176 9978 12/31/95 11892 11502 12/31/96 16446 15558 12/31/97 20515 18710 12/31/98 17985 15434 12/31/99 17545 14721 12/31/00 22605 18603 12/31/01 23828 21195 06/30/02 26434 24090
AVERAGE ANNUAL TOTAL RETURNS As of June 30, 2002
CREF NAREIT ------ ------ 1 Year 10.43% 16.21% 5 Years 8.21% 7.94% Since Inception (4/1/94) 12.42% 11.77%
--------------- 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. STRONG PERFORMANCE IN EARLY 2002 Stability, a lack of financial accounting controversy, and high dividend yields allowed REITs to continue their strong performance in the first half of 2002. For the six months ended June 30, the NAREIT Index returned 13.68%, while Columbia Real Estate Equity Fund returned 10.95%. Over the long term, however, the Fund has outperformed the Index, returning 12.42% on an average annual basis since its 1994 inception, as compared to the NAREIT Index return of 11.17% for the same period. PRESSURE ON OCCUPANCIES, RENTS The economic recession has put pressure on occupancies and rents, causing REIT earnings estimates for the year 2002 to fall (it is normal for REIT estimate reductions to lag behind estimates for the broader market). However, the low level of new supply and a Fed seeking to boost economic growth bode well for improved growth in 2003. The industrial and retail sectors are best positioned to benefit from expectations of gradually improving economic growth rates. TOP REIT PERFORMERS In the first half of 2002, the retail, industrial and lodging sectors were the top REIT performers. These sectors excelled from a combination of improved fundamentals (such as higher leasing activity for retail and rising manufacturing activity for industrial), the anticipation of improving fundamentals, and low earnings multiples relative to other REITs. The retail sector handily outperformed the Index, and the Fund's weighting here contributed greatly to its performance. The Fund's underweighting in the lodging sector negatively impacted performance early in the period. However, the Fund's underweighting in this sector should be a benefit going forward: the slow economic recovery has recently impacted lodging stocks, and the expectations for improving fundamentals in this sector were revised downward in the second quarter. 14 INVESTMENT REVIEWS -------------------------------------------------------------------------------- OFFICE SECTOR UNDERPERFORMS The Fund's overweighting of the office sector accounted for much of its underperformance relative to the Index. The protracted nature of the economic recovery has delayed the anticipated rebound in the office markets. As office REITs suffered from perceptions of declining growth rates, the decline in valuations was exacerbated by the prospect of further estimate reductions and a recovery that has been pushed out until late 2003. In recognition of these factors, the Fund has lowered its exposure to the sector, despite valuations that are still attractive. INDIVIDUAL HOLDINGS OF NOTE The best individual performers in the Fund included General Growth Properties and Simon Property Group (both mall companies), as well as ProLogis (an industrial REIT). Each of these companies benefited by beginning the year with low earnings multiples and perceptions of improving prospects. Conversely, the worst performers for the Fund had moderating earnings expectations; these companies included AvalonBay (an apartment REIT) and Equity Office Properties (an office REIT). FAVORABLE ENVIRONMENT FOR REITS 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 relative valuations. The Fund will continue to focus on companies with strong, experienced management teams and the best prospects for sustainable future growth. David W. Jellison Portfolio Manager TOP TEN HOLDINGS % of Net Assets
6/30/02 12/31/01 Equity Office Properties Trust 5.9 9.5 General Growth Properties, Inc. 5.6 4.9 Vornado Realty Trust 5.4 5.0 ProLogis 5.4 2.4 Simon Property Group, Inc. 5.0 4.8 iStar Financial, Inc. 4.8 4.8 Cousins Properties, Inc. 4.7 5.9 Trizec Properties, Inc. 3.6 4.2 Apartment Investment & Management Co. (Class A) 3.5 -- CarrAmerica Realty Corp. 3.5 4.0
------------------------ TOP FIVE SECTORS % of Net Assets
6/30/02 12/31/01 Office 24.3 25.6 Industrial 20.2 16.0 Apartments 14.6 15.0 Shopping Malls 13.9 9.8 Community Centers 8.8 8.0
15 INVESTMENT REVIEWS -------------------------------------------------------------------------------- COLUMBIA TECHNOLOGY FUND [GROWTH OF $10,000 SINCE INCEPTION LINE GRAPH]
COLUMBIA TECHNOLOGY FUND MERRILL LYNCH 100 TECHNOLOGY INDEX ------------------------ ---------------------------------- 11/9/00 10000 10000 12/31/00 8622 7201 12/31/01 6124 4864 6/30/02 4606 3275
AVERAGE ANNUAL TOTAL RETURNS As of December 31, 2002
CTF MERRILL ------- 100 TECH ------------- 1 Year -36.76% -43.78% Since Inception (11/9/00) -38.40% -50.23%
Past performance is not predictive of future results. The Merrill Lynch 100 Technology Index 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. BEAR MARKET CONTINUES FOR TECHNOLOGY For the six months ended June 30, 2002, Columbia Technology Fund generated a total return of -24.80%, outperforming its benchmark, the Merrill Lynch 100 Technology Index, which posted a total return of -32.65%. The technology sector continued to struggle in a bear market that has persisted since March of 2000. Valuations have compressed, as many technology companies have been unable to meet their earnings expectations while others have revised their expectations downward. These factors have added to concerns in the broader market -- such as the quality of reported earnings, the level of investor confidence and the pace of the expected economic recovery -- to create a difficult investment environment for tech stocks. However, valuations for tech stocks are approaching attractive levels on an historical basis, and at some point, this sector should provide compelling investment opportunities. AREAS OF DISAPPOINTMENT The Fund's performance was negatively impacted by the underperformance of various industries throughout the period. In the first quarter, the telecommunications industry was the main culprit; it suffered as telecom carrier capacity remained under pressure. In the second quarter, the Fund's performance was hindered by its overweighting in the computer hardware industry. In 2001, computer hardware stocks had struggled as corporate spending on information technology (I/T) was cut. These stocks were set back again this year as an anticipated recovery in I/T spending was pushed out to 2003. We reduced our weighting in the computer hardware industry and expect to maintain an underweighting here until I/T spending visibly improves. STOCK SELECTION ENHANCES PERFORMANCE A number of strategies enabled the Fund to outperform its benchmark for the period. For instance, the Fund benefited from good stock selection in the semiconductor and semiconductor capital equipment industries. These areas outperformed in 2001 and received an additional boost on renewed optimism for improvements in capacity utilization. As of June 30, the Fund continues to invest in two of the largest semiconductor foundries, Taiwan Semiconductor and United Microelectronics, which are expected to grow faster than the industry as a whole. 16 INVESTMENT REVIEWS -------------------------------------------------------------------------------- Allocating a portion of the portfolio's assets to the defense industry has also produced favorable results for the Fund. The defense industry is benefiting from an increase in government spending, and as the market has recognized this growth in spending, stock prices have moved higher. In other areas, the Fund made gains in the aerospace and medical technology industries early in the reporting period. Later in the period, performance was enhanced by holdings in the diversified consumer services and application software industries. For instance, BMC Software (specializing in systems management software), Electronic Arts (an electronic game maker) and Intuit (a provider of tax preparation software) all made positive contributions. LOOKING AHEAD We will continue to seek companies with strong management, superior long-term growth prospects and dominant market share positions at what we believe to be sustainable valuations. The Fund has benefited from a defensive posture so far this year, and we will remain cautious as we evaluate investment opportunities in the second half of 2002. Though the recovery in I/T spending has been delayed at least until 2003, we think the Fund is well positioned to gain from an improvement when it occurs. As the economy changes course, we believe technology stocks should benefit from any increase in revenue and earnings projections and gradually recover. The Technology Fund Investment Team TOP TEN HOLDINGS % of Net Assets
6/30/02 12/31/01 Electronic Arts, Inc. 3.3 0.5 Electro Scientific Industries, Inc. 2.9 -- United Microelectronics Corp. ADR 2.8 2.6 eBay, Inc. 2.8 -- Intuit, Inc. 2.6 1.4 Microchip Technology, Inc. 2.6 -- Integrated Circuit Systems, Inc. 2.5 0.8 BMC Software, Inc. 2.3 -- Entegris, Inc. 2.3 1.4 Taiwan Semiconductor Manufacturing Company Ltd. ADR 2.2 1.6
------------------------ TOP FIVE INDUSTRIES % of Net Assets
6/30/02 12/31/01 Computer Services Software & Systems 16.7 23.3 Electronics: Semiconductors 16.1 18.9 Production Technology Equipment 15.3 14.2 Electronics 5.4 4.7 Consumer Electronics 4.5 2.9
17 INVESTMENT REVIEWS -------------------------------------------------------------------------------- COLUMBIA STRATEGIC VALUE FUND [GROWTH OF $10,000 SINCE INCEPTION LINE GRAPH]
COLUMBIA STRATEGIC VALUE LIPPER MULTI-CAP VALUE FUND FUNDS INDEX S&P 500 INDEX ------------------------ ---------------------- ------------- 11/9/00 10000 10000 10000 12/31/00 11225 10204 9386 12/31/01 14566 10337 8271 6/30/02 14896 9476 7182
AVERAGE ANNUAL TOTAL RETURNS As of June 30, 2002
Lipper Multi-Cap CSVF Value S&P 500 ------ ----------- ------- 1 Year 6.68% -10.89% -17.99% Since Inception (11/9/00) 28.29% -3.23% -18.68%
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. The S&P 500 Index is an unmanaged index generally considered representative of the U.S. stock market. FUND CONTINUES TO OUTPERFORM Columbia Strategic Value Fund continued to outperform the broader market for the first half of 2002. For the six months ended June 30, the Fund generated a total return of 2.27% while the S&P 500 returned -13.16% and the Lipper Multi-Cap Value Funds Index returned -8.32%. SECOND QUARTER PROVES DIFFICULT After advancing in the first quarter due to gains in the energy, capital goods and basic materials sectors, the Fund was not immune to the harsh environment of the second quarter and posted negative returns in that period. As more news of accounting problems surfaced, investor confidence in the quality of reported earnings and overall balance sheets fell. In addition, a number of industries, including technology and media, continued to suffer as the economic recovery struggled to gain traction. The holdings in these industries hurt the Fund's performance in the latter half of the reporting period. SHIFTS IN INDUSTRY EMPHASIS We made a number of shifts in industry weightings throughout the first six months of the year. For instance, we reduced our weighting in the technology sector, where valuations appeared to be high. Although the technology sector has been in a bear market for over two years, we experienced some positive performance from certain individual holdings, like Sandisk, which manufactures flash memory data storage products. In other areas of the portfolio, we increased our weightings in the energy and consumer staples sectors, which contributed positively to performance. Early in the period, we also increased our weighting in the capital goods sector, which provided disappointing returns in the second quarter. FOCUS ON INFRASTRUCTURE SPENDING Throughout the reporting period, we continued to seek opportunities in infrastructure-related industries. We believe certain companies are positioned to benefit from increased U.S. government and industry spending on infrastructure. As a result, we increased or added new positions in companies like Fluor Corp., a provider of design, engineering, procurement and construction services; Tetra Tech, a provider of resource management and infrastructure consulting and technical services; URS Corp., a 18 INVESTMENT REVIEWS -------------------------------------------------------------------------------- general contractor in various fields; and Washington Group, a service provider in engineering, construction and program management. OPPORTUNITY FROM A WEAKER DOLLAR During the second quarter, the U.S. dollar weakened substantially. As it is expected to remain weak going forward, we have been focusing on companies that could potentially benefit from this situation. Therefore, in the portfolio we have emphasized multinational companies with significant international exposure, such as Unilever, Estee Lauder and Newell Rubbermaid. In other moves on the international front, we began building up our positions in stocks issued by Scandinavian companies during the second quarter. We believe that companies such as Nokian Renkaat (a tire manufacturer) and Orkla (a consumer products company) are in a favorable position to benefit from Russia's revival as an oil superpower. EMPHASIZING EMERGING COMPANIES We continue to seek companies that are attractively valued in the marketplace and that are demonstrating improving cash flow and return on investments, or have potential to do so. We are also placing an emphasis on emerging companies with strong market positions and solid balance sheets. Robert A. Unger Portfolio Manager TOP TEN HOLDINGS % of Net Assets
6/30/02 12/31/01 Caterpillar Inc. 1.2 -- 3M Co. 1.2 0.8 Wachovia Corp. 1.1 0.7 The Estee Lauder Companies, Inc. (Class A) 1.0 -- American International Group, Inc. 1.0 -- Temple-Inland, Inc. 1.0 -- Modine Manufacturing Co. 0.9 -- McDonald's Corp. 0.8 0.4 Principal Financial Group, Inc. 0.8 -- Dillard's, Inc. (Class A) 0.8 --
------------------------ TOP FIVE SECTORS % of Net Assets
6/30/02 12/31/01 Consumer Discretionary & Services 13.5 14.4 Financial Services 13.3 9.6 Materials & Processing 10.9 10.2 Producer Durables 6.5 8.1 Other Energy 5.8 4.7
19 INVESTMENT REVIEWS -------------------------------------------------------------------------------- COLUMBIA BALANCED FUND [GROWTH OF $10,000 OVER 10 YEARS LINE GRAPH]
LEHMAN AGGREGATE BOND COLUMBIA BALANCED FUND S&P 500 INDEX INDEX ---------------------- ------------- --------------------- 06/30/92 10000 10000 10000 06/30/93 11615 11363 11179 06/30/94 11825 11523 11034 06/30/95 13743 14527 12417 06/30/96 15904 18306 13041 06/30/97 18868 24656 14103 06/30/98 22597 32095 15590 06/30/99 25823 39397 16081 06/30/00 28865 42253 16816 06/30/01 26282 35982 18704 06/30/02 23540 29509 20313
AVERAGE ANNUAL TOTAL RETURNS As of June 30, 2002
S&P LEHMAN CBF 500 AGGREGATE ------- ------- --------- 1 Year -10.42% -17.99% 8.61% 5 Years 4.53% 3.66% 7.57% 10 Years 8.94% 11.43% 7.34%
Past performance is not predictive of future results. The S&P 500 Index 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. FIRST HALF PERFORMANCE For the six months ended June 30, 2002, Columbia Balanced Fund returned -7.88%. Gains in the fixed income portion of the Fund were wiped away by losses incurred in a volatile stock market. For instance, the Lehman Aggregate Bond Index gained 3.79% for the period, while the S&P 500 Index lost -13.16%. AN OVERVIEW OF THE MARKETS The economy appeared to be on track for a modest recovery as corporate profits and economic activity accelerated in the first quarter. However, despite these positive developments in fundamentals, the economic recovery was overshadowed by concerns about the quality of reported earnings and corporate governance. Larger cap companies suffered more than smaller cap companies, as valuations continued to compress for the former. As the list of suspected culprits of accounting irregularities grew in the second quarter, the market responded with one of its worst quarters since World War II, with the S&P 500 Index shedding -13.40%. Although bonds generally performed well in the first half of 2002, the market behaved quite differently in the first and second quarters. In the first quarter, interest rates rose in response to the market's expectations that the Fed would react to signs of economic growth by raising rates. In the second quarter, interest rates fell as the anticipated recovery appeared to stall and expectations for Fed action were pushed out. With concerns of corporate scandals weighing on investors, not to mention persistent terrorist threats, the market saw a flight to quality as investors sought refuge from stock market volatility. PERFORMANCE IS MIXED The technology, telecommunications and media sectors struggled throughout much of the period and had an overall negative impact on the Fund's equity performance. Adelphia Communications was our worst holding in the media area and was sold due to reports that the management group had deceived investors and lost all credibility. In addition, Tyco International, a diversified industrial holding, had very weak performance, as it appeared that its management group had also misled shareholders. We took early action in January to mitigate the effect of Tyco's losses on the portfolio. Despite a number of disappointments during the period, the Fund's equity performance benefited from certain defensive holdings. Raytheon, a provider of 20 INVESTMENT REVIEWS -------------------------------------------------------------------------------- electronic goods for the defense industry, outperformed in the first part of the year due to rising defense budgets and an increasing ability to generate strong cash flow. Also, Bank of America maintained its status as a stalwart holding and continued to show strong earnings and dividend yield. In the fixed income portion of the portfolio, the Fund benefited from overweighting asset-backed and mortgage-backed securities, including commercial mortgage-backed securities, all of which outperformed Treasuries. However, performance was hampered by an overweighting in investment-grade corporate bonds, as well as by the portfolio's small weighting in high yield issues. Corporate issues struggled due to the same accounting issues that are plaguing the equity markets. OUR INVESTMENT STRATEGY While the pace of the anticipated rebound can be debated, we continue to believe that the economy is on track for a modest recovery. In the Fund's equity portfolio, we are seeking companies that are well positioned to benefit from revitalized U.S. and global economies. Therefore, we have been adding to companies and industries that can benefit from a weaker dollar, such as multinational firms with significant operations abroad. We are also maintaining a lower weighted average market cap than the S&P 500 Index, believing that smaller issues will outpace the largest companies. As we expect the volatility in corporate bonds to continue for some time, we have reduced the Fund's exposure to these issues in its fixed income portfolio. Over the long-term, however, we believe that corporate bonds, including high yield issues, will outperform other sectors of the bond market. In the meantime, we continue to overweight asset-backed securities and mortgage-backed securities, as their yields are still high and more attractive relative to Treasuries. Guy W. Pope, Leonard A. Aplet and Jeffrey L. Rippey On behalf of the Columbia Investment Team TOP TEN HOLDINGS % of Net Assets
6/30/02 12/31/01 Citigroup, Inc. 2.2 2.7 Pfizer, Inc. 2.2 2.1 Wal-Mart Stores, Inc. 1.8 1.5 Microsoft Corp. 1.4 1.9 General Electric. Co. 1.4 2.2 Exxon Mobil Corp. 1.4 1.6 Bank of America Corp. 1.3 1.0 Pharmacia Corp. 1.3 0.8 American International Group, Inc. 1.3 1.1 American Express Co. 1.2 0.9
PORTFOLIO COMPOSITION % of Net Assets June 30, 2002 [PIE CHART] Stocks 58.3% Bonds 40.8% Cash 0.9%
DECEMBER 31, 2001 [PIE CHART] Stocks 56.6% Bonds 39.3% Cash 4.1%
21 INVESTMENT REVIEWS -------------------------------------------------------------------------------- COLUMBIA SHORT TERM BOND FUND [GROWTH OF $10,000 OVER 10 YEARS LINE GRAPH]
COLUMBIA SHORT TERM BOND MERRILL LYNCH 1-5 YEAR MERRILL LYNCH 1-3 YEAR FUND GOV'T/CORP INDEX TREASURY INDEX ------------------------ ---------------------- ---------------------- 6/30/92 10000.00 10000.00 10000.00 6/30/93 10737.00 10851.00 10658.00 6/30/94 10853.00 10951.00 10830.00 6/30/95 11571.00 11923.00 11667.00 6/30/96 12100.00 12556.00 12304.00 6/30/97 12814.00 13415.00 13111.00 6/30/98 13577.00 14425.00 14004.00 6/30/99 14152.00 15142.00 14715.00 6/30/00 14680.00 15834.00 15438.00 6/30/01 15971.00 17449.00 16830.00 6/30/02 17065.00 18782.00 17949.00
AVERAGE ANNUAL TOTAL RETURNS As of December 31, 2001
MERRILL MERRILL 1-5 1-3 CSTB GOV.T/CORP TREASURY ----- ---------- -------- 1 Year 6.85% 7.62% 6.65% 5 Years 5.90% 6.96% 6.48% 10 Years 5.49% 6.51% 6.02%
Past performance is not predictive of future results. 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 measures the return of Treasury bills with maturities of 1-3 years and is intended to provide a benchmark for the prior investment objective and strategy of the Fund. On November 1, 2000, the Fund's strategy was changed from a U.S. government bond fund to a short term bond fund. Through October 31, 2003, the Advisor has contractually agreed to reimburse the Fund to keep expenses at or below 0.75% of net assets. Absent this reimbursement, total returns may have been lower. FIRST HALF RESULTS For the six months ended June 30, Columbia Short Term Bond Fund returned 2.69%. In comparison, the Merrill Lynch 1-5 Year Government/Corporate Index returned 2.94% and the Merrill Lynch 1-3 Year Treasury Index returned 2.38%. INVESTORS SEEK STABILITY OF BONDS Although bonds generally performed well in the first six months of the year, the market behaved quite differently in the first and second quarters. In the first quarter, interest rates rose in response to the market's expectations that the Fed would react to signs of economic growth by raising interest rates. This increase in interest rates hurt performance as price decreases on the securities in the portfolio offset much of the interest income earned. In the second quarter, investor confidence was increasingly undermined as more corporate scandals and accounting irregularities were revealed and as threats of terrorism and unrest in the Middle East persisted. In addition, the anticipated economic recovery appeared to stall. As expectations for Fed action were pushed out, sentiment in the bond market turned up and a flight to quality ensued as investors turned to bonds (especially Treasuries) in search of stability. During the quarter, declining interest rates helped the Fund's performance as price increases on securities added to the interest income of the portfolio. EXPECTATIONS FOR MODERATE GROWTH, INFLATION After growing at a rate of 5.0% in the first quarter (as measured by the gross domestic product), U.S. economic expansion slowed in the second quarter to an estimated 1.1%. Housing and consumer spending have been areas of economic strength thus far, but the negative wealth effect resulting from the struggling equity market could impact consumer behavior going forward. Economic growth is expected to be moderate for the balance of the year, and the financial markets will monitor the Fed's reaction to the pace of an economic recovery. The Fed adopted a "neutral" posture at its March meeting and will likely await signs of a sustainable recovery before embarking on a "tightening" policy (raising interest rates). The timing and amount of any rate revisions should have a great impact on both the bond and the stock markets. 22 INVESTMENT REVIEWS -------------------------------------------------------------------------------- In addition to economic growth, the financial markets and the Fed are always monitoring the level of inflation. Inflation has declined over the past year as measured by the Consumer Price Index (CPI), which has risen only 1.1% for the 12 months ended June 30. The CPI may have reached a bottom and could turn higher as the economy improves and as energy prices increase. However, inflation is not expected to be a significant problem over the next 12 months. CONTRIBUTORS TO PORTFOLIO PERFORMANCE The Fund's performance benefited from an overweighting in short-term asset-backed securities and mortgage-backed securities, including commercial mortgage-backed securities, all of which outperformed Treasuries. However, performance was hampered by an overweighting in investment-grade corporate bonds. In general, corporate issues struggled due to the same accounting issues that have plagued the equity markets. PORTFOLIO INVESTMENT STRATEGY We expect interest rates to remain in a broad trading range for the remainder of 2002. As we expect the volatility in corporate bonds to continue for some time, we have reduced the Fund's exposure to these issues. However, over the long-term, we believe that corporate bonds will outperform other sectors of the bond market. In the meantime, we continue to overweight AAA-rated asset-backed securities and mortgage-backed securities in the portfolio, as their yields are still high and more attractive relative to Treasuries. In addition, the Fund will maintain a short- to intermediate-term maturity and an average duration of less than three years. Leonard A. Aplet and Jeffrey L. Rippey Portfolio Managers PORTFOLIO COMPOSITION % of Net Assets
6/30/02 12/31/01 Corporate Bonds 32.3 38.9 Collateralized Mortgage Obligations 22.2 12.2 Asset-Backed Securities 14.1 18.9 Mortgage Pass-Throughs 13.7 15.5 Treasury/Agency 10.7 6.6 Cash 7.0 7.9
PORTFOLIO QUALITY % of Portfolio Holdings June 30, 2002 [PIE CHART] Aaa 34.9% Treasury/Agency 28.7% A 18.9% Baa 11.5% Aa 6.0%
December 31, 2001 [PIE CHART] Aaa 33.3% Treasury/Agency 24.6% A 20.9% Baa 14.5% Aa 6.7%
As rated by Moody's Investors Service, Inc. 23 INVESTMENT REVIEWS -------------------------------------------------------------------------------- COLUMBIA FIXED INCOME SECURITIES FUND [GROWTH OF $10,000 OVER 10 YEARS LINE GRAPH]
COLUMBIA FIXED INCOME SECURITIES FUND LEHMAN AGGREGATE BOND INDEX -------------------------------- --------------------------- 6/30/92 10000 10000 6/30/93 11273 11179 6/30/94 11082 11034 6/30/95 12460 12417 6/30/96 13074 13041 6/30/97 14163 14103 6/30/98 15591 15590 6/30/99 15850 16081 6/30/00 16459 16816 6/30/01 18327 18704 6/30/02 19714 20313
AVERAGE ANNUAL TOTAL RETURNS As of June 30, 2002
LEHMAN CFIS AGGREGATE ----- --------- 1 Year 7.57% 8.61% 5 Years 6.84% 7.57% 10 Years 7.02% 7.34%
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 Overall, the first half of 2002 was a favorable period for fixed income instruments. For the six months ended June 30, Columbia Fixed Income Securities Fund returned 3.00%. In comparison, the Lehman Aggregate Bond Index returned 3.79%. A FLIGHT TO QUALITY Although bonds generally performed well in the first six months of the year, the market behaved quite differently in the first and second quarters. In the first quarter, interest rates rose in response to the market's expectations that the Fed would react to signs of economic growth by raising interest rates. Yields increased slightly, but only enough to offset the decline in bond prices. For the quarter, the Index had a relatively flat return of 0.09%. In the second quarter, the market saw a flight to quality as investors moved to bonds, especially Treasuries, due to a number of concerns. Along with a market troubled by corporate scandal, investor confidence was undermined by persistent threats of terrorism and unrest in the Middle East. In addition, as the anticipated economic recovery appeared to stall, expectations for Fed action were pushed out and sentiment in the bond market turned up. As a result, declining interest rates helped the Fund's performance as price increases on securities added to interest income. MONITORING GROWTH, INFLATION Though the U.S. economy grew at a rate of 5.0% in the first quarter (as measured by the gross domestic product), the rate of expansion slowed in the second quarter to an estimated 1.1%. Housing and consumer spending have been areas of economic strength thus far, but the negative wealth effect resulting from the struggling equity market could impact consumer behavior. Although economic growth is expected to be moderate for the balance of the year, the financial markets remain concerned about how the Fed could react to the pace of an economic recovery. The Fed is currently maintaining a "neutral" posture and appears to be awaiting signs of a sustainable recovery before raising interest rates. The timing and amount of any rate revisions should have a great impact on both the bond and the stock markets. 24 INVESTMENT REVIEWS -------------------------------------------------------------------------------- In addition to economic growth, the level of inflation is always a concern in the financial markets and with the Fed. Inflation has declined over the past year as measured by the Consumer Price Index (CPI), which has risen only 1.1% for the 12 months ended June 30. The CPI may have reached a bottom and could turn higher as the economy improves and as energy prices increase. However, inflation is not expected to be a significant problem over the next 12 months. MORTGAGE-BACKED SECURITIES OUTPERFORM The Fund's performance benefited from an overweighting in asset-backed securities and mortgage-backed securities, including commercial mortgage-backed securities, all of which outperformed Treasuries. However, performance was hampered by an overweighting in investment-grade corporate bonds, as well as by the portfolio's small weighting in high yield issues. Corporate issues all around struggled due to the same accounting issues that have plagued the equity markets. OUR STRATEGY GOING FORWARD We expect interest rates to remain in a broad trading range for the remainder of 2002. As we expect the volatility in corporate bonds to continue for some time, we have reduced the Fund's exposure to these issues. However, over the long-term, we believe that corporate bonds, including high yield issues, will outperform other sectors of the bond market. In the meantime, we continue to overweight asset-backed securities and mortgage-backed securities in the portfolio, as their yields are still high and more attractive relative to Treasuries. Leonard A. Aplet and Jeffrey L. Rippey Portfolio Managers PORTFOLIO COMPOSITION % of Net Assets
6/30/02 12/31/01 Corporate Bonds 38.8 42.2 Mortgage Pass-Throughs 21.3 20.5 Collateralized Mortgage Obligations 17.3 13.6 Treasury/Agency Obligations 10.7 10.9 Asset-Backed Securities 6.9 7.9 Cash 5.0 4.9
PORTFOLIO QUALITY % of Portfolio Holdings June 30, 2002 [PIE CHART] Treasury/Agency 39.3% A 16.8% Aaa 19.6% Baa 12.8% Aa 5.0% Ba 4.0% B 2.5%
December 31, 2001 [PIE CHART] Treasury/Agency 40.0% Aaa 16.6% A 17.3% Baa 13.1% Aa 6.0% Ba 4.5% B 2.5%
As rated by Moody's Investors Service, Inc. 25 INVESTMENT REVIEWS -------------------------------------------------------------------------------- COLUMBIA NATIONAL MUNICIPAL BOND FUND 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 12/31/01 11094.00 11042.00 11413.00 6/30/02 11647.00 11516.00 11942.00
AVERAGE ANNUAL TOTAL RETURNS As of June 30, 2002
LEHMAN LIPPER CNMF MUNI GENERAL ----- ------ ------- 1 Year 6.70% 6.92% 5.84% Since Inception (2/24/99) 4.73% 5.53%* 4.30%
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 MUNIS MAKE GAINS IN FIRST HALF Municipal bonds performed well in the first half of 2002, and Columbia National Municipal Bond Fund rose 4.97% for the six months ended June 30. The Fund outperformed its benchmark indices, as the Lehman Brothers Municipal Bond Index rose 4.64% and the Lipper General Municipal Debt Funds Index gained 4.30%. BOND PRICES REBOUND IN SECOND QUARTER As the period commenced, positive economic news suggested that U.S. and global economies were stabilizing and on track for recovery. In addition, it appeared as though the Fed's easing cycle had ended. The Fed confirmed this speculation in March by adopting a neutral bias, setting the stage for possible short-term interest rate hikes later this year. In anticipation of this action, bond prices fell and the market drove interest rates up. In the latter half of the period, bond prices appreciated: expectations for Fed tightening were pushed out as the economic recovery appeared to falter and stock prices plummeted. Investor confidence had been shaken by corporate fraud, overstated earnings, downward revisions to forecasted profits and occasional terrorist warnings. The resulting market volatility prompted many equity investors to move their investments to bonds in search of some stability, and this increase in demand helped propel bond prices higher. The Fed is monitoring the strength and progress of the economic recovery as it considers revising the target federal funds rate. We continue to anticipate a modest recovery and expect that interest rates will eventually rise once the stock market stabilizes. MUNICIPAL BONDS OUTPERFORM Municipal bonds outperformed in the first half of 2002 due primarily to a relatively low supply of new issuance nationwide. Late in 2001, municipalities had rushed to refinance older issues in order to take advantage of historically low interest rates. This rush to refinance was followed by two traditionally slow months of new issuance, resulting in a dwindling supply of new issues in the first quarter. In the second quarter, prices on municipals received another boost due to strong demand and moderate supply 26 INVESTMENT REVIEWS -------------------------------------------------------------------------------- nationally, including demand based on large coupon payments (due in June and July) that are typically reinvested in municipal bonds. Although municipalities are facing declining tax revenues, interest rates are still low and issuers continue to pursue opportunities to refund outstanding debt in order to lower their interest payments. Nationally, supply has been stronger as these refunding issues have come to market. Nevertheless, declining tax revenues are likely to cause some mild deterioration in the credit worthiness of municipalities, depending on how legislators respond to budget issues. Like corporate issuers, municipal entities should be able to look forward to improving finances in the future as the economy recovers and income tax receipts rise, bolstering state coffers next year. YIELDS REMAIN ATTRACTIVE Yields on municipal bonds, particularly intermediate and longer-term issues, continue to be attractive on a tax-adjusted basis for investors in the highest tax brackets. With the recent drop in short-term and intermediate rates, extending the maturity of the holdings from very short-term issues out to intermediate issues continues to be a way to improve long-term expected returns. We are maintaining an intermediate average maturity on the Fund, leaving the portfolio with a 7- to 10-year average life. The Fund continues to focus on high quality issues diversified across states and sectors nationwide. Greta R. Clapp Portfolio Manager Top Ten States % of Net Assets
6/30/02 12/31/01 Oregon 18.4 22.0 Texas 13.7 14.8 Washington 11.2 13.9 Illinois 10.3 5.1 Michigan 5.4 4.7 Indiana 4.5 0.7 Idaho 4.3 1.0 Tennessee 4.2 6.0 Alaska 3.5 3.5 Ohio 2.9 0.9
PORTFOLIO QUALITY % of Portfolio Holdings June 30, 2002 [PIE CHART] Aaa 50.7% Aa 18.3% Not Rated 16.3% A 9.8% Baa 4.9%
December 31, 2001 [PIE CHART] Aaa 48.1% Aa 17.6% Not Rated 16.6% A 10.9% Baa 6.8%
As rated by Moody's Investors Service, Inc. 27 INVESTMENT REVIEWS -------------------------------------------------------------------------------- COLUMBIA OREGON MUNICIPAL BOND FUND GROWTH OF $10,000 OVER 10 YEARS [LINE GRAPH]
COLUMBIA OREGON MUNICIPAL LEHMAN GENERAL OBLIGATION LIPPER OREGON MUNICIPAL BOND FUND BOND INDEX DEBT FUNDS ------------------------- ------------------------- ----------------------- 06/30/92 10000 10000 10000 06/30/93 11087 11167 11122 06/30/94 11025 11233 11042 06/30/95 11818 12156 11892 06/30/96 12479 12940 12582 06/30/97 13367 14012 13444 06/30/98 14392 15161 14529 06/30/99 14658 15602 14819 06/30/00 15006 16164 15116 06/30/01 16437 17709 16496 06/30/02 17510 18945 17535
AVERAGE ANNUAL TOTAL RETURNS As of June 30, 2002
LEHMAN LIPPER CMBF G.O. OREGON ----- ------ ------ 1 Year 6.54% 6.97% 6.09% 5 Years 5.55% 6.22% 5.22% 10 Years 5.76% 6.60% 5.77%
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. PORTFOLIO PERFORMANCE Columbia Oregon Municipal Bond Fund generated a return of 4.83% for the six months ended June 30, 2002. This return outpaced the Lipper Oregon Municipal Debt Funds Index, which had a return of 4.24%, and the Lehman General Obligation Bond Index, which had a return of 4.72%. INVESTORS TURN TO BONDS As the period commenced, positive economic news suggested that U.S. and global economies were stabilizing and on track for recovery. In addition, it appeared as though the Fed's easing cycle had ended. The Fed confirmed this speculation in March by adopting a neutral bias, setting the stage for possible short-term interest rate hikes later this year. In anticipation of this action, bond prices fell and the market drove interest rates up. In the latter half of the period, bond prices appreciated: expectations for Fed tightening were pushed out as the economic recovery appeared to falter and stock prices plummeted. Investor confidence had been shaken by corporate fraud, overstated earnings, downward revisions to forecasted profits and occasional terrorist warnings. The resulting market volatility prompted many equity investors to move their investments to bonds in search of some stability, and this increase in demand helped propel bond prices higher. The Fed continues to monitor the strength and progress of the economy as it considers the magnitude and timing of any interest rate revisions. We continue to anticipate a modest recovery late this year and expect that interest rates will rise gradually once the stock market stabilizes. LOW SUPPLY IN OREGON Municipal bonds performed well over the first half of the year for several reasons, but a lower supply of new issuance was the key factor. Late in 2001, municipalities had rushed to refinance older issues to take advantage of extremely low interest rates. In the first quarter of 2002, the supply of new issues diminished as many refinancings had already been accomplished, and January and February tend to be slow periods for new issuance. Later in the period, bond prices received a boost as Oregon issuers experienced heavy demand based on large coupon payments due in June and July (the coupon payments are typically reinvested in municipal bonds). 28 INVESTMENT REVIEWS -------------------------------------------------------------------------------- Although municipalities are facing declining tax revenues as the economic recovery falters, interest rates are still low and issuers continue to refund outstanding debt in order to lower their interest payments. While supply has been stronger nationally as these refunding issues have come to market, supply in Oregon remains very light. Nevertheless, declining tax revenues are likely to cause some mild deterioration in the creditworthiness of municipalities in Oregon, depending on how legislators respond to budget issues. Like corporate issuers, municipal entities should be able to look forward to improving finances in the future as the economy recovers and income tax receipts gradually rise, bolstering state coffers next year. ATTRACTIVE YIELDS ON A TAX-ADJUSTED BASIS Yields on municipal bonds, particularly intermediate and longer-term issues, continue to be attractive on a tax-adjusted basis for investors in the highest tax brackets. With the recent drop in short-term and intermediate interest rates, our strategy has been to extend the maturity of holdings from very short-term issues out to intermediate issues. This practice helps to improve long-term expected returns for the portfolio. Therefore, we are maintaining an intermediate average maturity for the Fund, leaving the portfolio with a 7- to 10-year average life. The Fund continues to focus on high quality issues diversified across counties and sectors within Oregon. Greta R. Clapp Portfolio Manager PORTFOLIO COMPOSITION % of Net Assets
6/30/02 12/31/01 Revenue 37.7 34.3 Insured Revenue 18.8 20.7 General Obligation 16.3 15.4 Insured General Obligation 15.3 14.6 State General Obligation 5.3 4.6 Other Bonds 3.1 2.9 U.S. Territories 0.6 0.6 Pre-Refunded Bonds 0.1 2.7 Cash 2.8 4.2
PORTFOLIO QUALITY % of Portfolio Holdings June 30, 2002 [PIE CHART] Aaa 33.8% Aa 40.2% A 8.7% Baa 4.5% Not Rated 12.8%
December 31, 2001 [PIE CHART] Aaa 36.8% Aa 38.5% A 8.4% Baa 4.5% Not Rated 11.8%
As rated by Moody's Investors Service, Inc. 29 INVESTMENT REVIEWS -------------------------------------------------------------------------------- COLUMBIA HIGH YIELD FUND GROWTH OF $10,000 SINCE INCEPTION [LINE GRAPH]
MERRILL LYNCH U.S. COLUMBIA HIGH YIELD MERRILL LYNCH HIGH YIELD, CASH PAY FUND SALOMON BB INDEX INTERMEDIATE BB INDEX INDEX ------------------- ---------------- --------------------- -------------------- 10/1/93 10000 10000 10000 10000 12/31/93 10112 10185 10204 10347 12/31/94 10019 10048 10190 10226 12/31/95 11935 12321 12130 12262 12/31/96 13060 13429 13127 13618 12/31/97 14719 15142 14600 15364 12/31/98 15640 16361 15524 15926 12/31/99 16012 16728 15910 16176 12/31/00 16750 17223 16186 15563 12/31/01 17861 19545 17803 16528 6/30/02 17560 18473 17021 15820
AVERAGE ANNUAL TOTAL RETURNS As of June 30, 2002
SALOMON MERRILL CHYF BB HIGH MERRILL ----- ------- YIELD BB ------- ------- 1 Year 1.55% -2.25% -3.08% -2.69% 5 Years 4.91% 5.46% 1.88% 4.29% Inception (10/1/93) 6.61% 7.22% 5.35% 6.23%
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 by Standard & Poor's or bonds rated Ba by Moody's Investors Service. The Merrill Lynch U.S. High Yield, Cash Pay Index is an unmanaged index of non-investment grade corporate bonds. The Advisor intends to replace the Salomon BB Index with the Merrill Lynch U.S. High Yield, Cash Pay Index, as the Fund's broad index, and it is more representative of a broad based index. The Merrill Lynch Intermediate BB Index is a market weighted index, consisting of BB cash pay bonds, which are U.S. dollar denominated bonds issued in the U.S. domestic market with maturities between 1 and 10 years. WEAK STOCK MARKET AFFECTS HIGH YIELD For the first six months of 2002, Columbia High Yield Fund posted a return of -1.67%. This compared to a return of -4.31% for the Merrill Lynch U.S. High Yield, Cash Pay Index. Weak overall equity market performance, combined with continued pressure on bonds issued in the telecommunications sector, contributed to negative returns. TELECOM ISSUES MAKE A NEGATIVE IMPACT In the first quarter of this year, the high yield market continued its strong rally from late 2001, as the Merrill Lynch U.S. High Yield, Cash Pay Index returned nearly 2% for the period. The positive returns were achieved in an environment of rising Treasury rates and a virtually flat equity market. The high yield market saw continued improvement in April and only experienced a slightly negative decline of 0.54% in May, as measured by the Index. In June, however, the market took a significant downturn, as the Index dropped a record 7.11% for the month. In June, a number of events contributed to the high yield market's decline. At the forefront were the ongoing corporate scandals in accounting irregularities that have hurt investor confidence. In addition, the declining value of telecommunication sector bonds caused the Index to trade down significantly. The telecommunications industry alone fell over 34% in June, accounting for over half of the drop in value of the Merrill Lynch U.S. High Yield, Cash Pay Index in the month. Within the telecom industry, bonds issued by WorldCom (not a portfolio holding) were the primary contributors to this poor performance. SHIFTS IN INDUSTRY EMPHASIS During the first half of the year, we made industry changes on the buy side that centered around two themes. First, we added to holdings in more defensive industries. For example, we increased our weighting in the food and beverage industry by 3% of net assets and in the consumer product industry by 1%. Second, we increased our weightings in industries that we believe will continue to rebound from last fall. For instance, our weightings in hotels, homebuilders and gaming were all increased by more than 2% of net assets. 30 INVESTMENT REVIEWS -------------------------------------------------------------------------------- On the sell side, we took our telecommunications sector weighting to zero in the period. We also decreased our weighting in the electric utilities industry by approximately 3.5% of net assets, mostly from the sale of AES bonds. Finally, we sold bonds issued by Adelphia during the period, which lowered our cable weighting by approximately 3%. CONTRIBUTORS TO FUND PERFORMANCE The Fund's top three performers for the first half of 2002 were Pennzoil-Quaker State, Six Flags and Winn-Dixie Stores. Pennzoil agreed to be purchased by Shell Oil Company, an investment-grade credit. Six Flags has improved operations, slowed capital expenditures and focused on improving cash flow. Winn-Dixie bonds performed well as the company paid down debt and improved its same-store sales growth and profitability. One industry that hurt the portfolio in the period was the cable industry. When the sixth largest cable operator, Adelphia, revealed accounting fraud, the entire industry traded down. Investors chose to focus on companies with positive free cash flow and have avoided companies that are highly leveraged or need additional funding, like cable companies. Due to this preference, bonds in the portfolio issued by Charter Communications underperformed in the period. Despite the issues associated with Adelphia, we believe the cable companies in the portfolio have potential to perform well over the next 12 months. AN OUTLOOK FOR HIGH YIELD Investor confidence has been hurt by the ongoing corporate scandals. Accounting issues and the quality of earnings have taken center stage in investors' minds. If the number of companies involved in questionable reporting practices does not escalate, high yield spreads/prices should begin to stabilize. We believe that the economy continues on the road to recovery, which should ultimately lead to improved earnings and a better environment for high yield bonds over the next year. Jeffrey L. Rippey and Kurt M. Havnaer Portfolio Managers TOP FIVE SECTORS % of Net Assets
6/30/02 12/31/01 Consumer Cyclical 31.4 25.6 Consumer Staples 24.7 22.9 Business & Consumer Services 14.3 16.9 Basic Industries & Mfg. 8.2 7.0 Energy 5.8 4.7
PORTFOLIO QUALITY % of Portfolio Holdings June 30, 2002 [PIE CHART] B 38.3% Ba 58.1% Baa 2.5% A 1.1%
December 31, 2001 [PIE CHART] B 49.5% Ba 48.6% Baa 1.9%
As rated by Moody's Investors Service, Inc. 31 INVESTMENT REVIEWS -------------------------------------------------------------------------------- COLUMBIA DAILY INCOME COMPANY GROWTH OF $10,000 OVER 10 YEARS [LINE GRAPH]
COLUMBIA DAILY INCOME COMPANY CONSUMER PRICE INDEX (INFLATION) ----------------------------- -------------------------------- 06/30/92 10000 10000 06/30/93 10265 10300 06/30/94 10544 10558 06/30/95 11074 10874 06/30/96 11645 11179 06/30/97 12226 11436 06/30/98 12859 11630 06/30/99 13471 11863 06/30/00 14188 12302 06/30/01 14977 12695 06/30/02 15266 12835
AVERAGE ANNUAL TOTAL RETURNS As of June 30, 2002
CDIC CPI ----- ----- 1 Year 1.95% 1.10% 5 Years 4.54% 2.34% 10 Years 4.32% 2.53%
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
6/30/02 12/31/01 Current Yield 1.19% 1.50% Compound Yield 1.20% 1.51% Based on the 7-day period ending on each date shown Weighted Average Maturity 30 days 33 days
RESULTS FOR THE FIRST HALF The Fund posted a return of 0.62% for the six months ended June 30, 2002. The yield on the Fund lagged behind the general level of inflation, as the Consumer Price Index (CPI) rose 1.40% for the period. However, for the 12 months ended June 30, the Fund returned 1.95%, while the CPI rose 1.10%. The CPI may have reached a bottom on a year-over-year basis and could tick up as the economy improves and energy prices rise. Nonetheless, we do not expect inflation to be a significant problem over the next 12 months. FED WATCHING FOR ECONOMIC RECOVERY The U.S. economy improved rapidly in the first quarter of 2002, growing at an annual rate of 5.0%, as measured by the gross domestic product (GDP). However the rate of expansion slowed in the second quarter to an estimated 1.1%, while the falling equity market began to erode consumer confidence. Housing and consumer spending have been areas of economic strength, but the negative wealth effect resulting from the struggling equity market could affect consumer behavior. Currently, a major concern in the financial markets is how the Fed will react to the pace of economic recovery. As of June 30, the Fed is maintaining a "neutral" posture and does not appear anxious to change the level of short-term rates very much or very soon. The amount and the timing of any rate revisions are likely to have a great impact on the stock and bond markets. LOWER YIELD DUE TO RATE CUTS The Fund's yield fell last year along with short-term interest rates during the Fed's easing policy. The current 7-day yield on the Fund is 1.19%. If short-term rates rise, the yield on the Fund should improve. 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. Leonard A. Aplet Portfolio Manager 32 FINANCIAL HIGHLIGHTS -------------------------------------------------------------------------------- COLUMBIA COMMON STOCK FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
Six Months Ended June 30, 2002 (Unaudited) 2001 2000 1999 1998 1997 ------ ------ ------ ------ ------ --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $19.97 $24.34 $28.90 $24.40 $22.02 $19.26 --------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)............. 0.04 0.07 (0.01) 0.03 0.09 0.29 Net realized and unrealized gains (losses) on investments................ (3.02) (4.35) (1.54) 6.25 5.68 4.58 --------------------------------------------------------------------------------------------------------------------------------- Total from investment operations....... (2.98) (4.28) (1.55) 6.28 5.77 4.87 --------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Dividends from net investment income..... -- (0.07) -- (0.03) (0.13) (0.27) Distributions from capital gains......... -- (0.02) (3.01) (1.75) (3.26) (1.84) --------------------------------------------------------------------------------------------------------------------------------- Total distributions.................... -- (0.09) (3.01) (1.78) (3.39) (2.11) --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $16.99 $19.97 $24.34 $28.90 $24.40 $22.02 --------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN.............................. -14.92%(1) -17.60% -5.73% 25.76% 26.28% 25.37% RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in thousands)............................... $535,725 $681,397 $895,134 $959,910 $797,147 $783,906 Ratio of expenses to average net assets... 0.83%(2) 0.80% 0.75% 0.77% 0.80% 0.77% Ratio of net investment income (loss) to average net assets....................... 0.37%(2) 0.32% (0.05)% 0.09% 0.56% 1.37% Portfolio turnover rate................... 59%(1) 114% 104% 97% 141% 90%
(1) Not annualized (2) Annualized COLUMBIA GROWTH FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
Six Months Ended June 30, 2002 (Unaudited) 2001 2000 1999 1998 1997 ------ ------ ------ ------ ------ --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $31.35 $40.07 $48.91 $42.51 $34.34 $30.74 --------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)............. (0.01) (0.02) (0.08) (0.03) 0.03 0.19 Net realized and unrealized gains (losses) on investments................ (7.24) (8.55) (3.49) 11.09 10.39 7.90 --------------------------------------------------------------------------------------------------------------------------------- Total from investment operations....... (7.25) (8.57) (3.57) 11.06 10.42 8.09 --------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Dividends from net investment income..... -- -- -- (0.00)* (0.08) (0.17) Distributions from capital gains......... -- (0.15) (5.27) (4.66) (2.17) (4.32) --------------------------------------------------------------------------------------------------------------------------------- Total distributions.................... -- (0.15) (5.27) (4.66) (2.25) (4.49) --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD............ $24.10 $31.35 $40.07 $48.91 $42.51 $34.34 --------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN.............................. -23.13%(1) -21.40% -7.94% 26.02% 30.34% 26.32% RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in thousands)............................... $941,731 $1,325,844 $1,919,227 $2,160,739 $1,753,024 $1,324,918 Ratio of expenses to average net assets... 0.79%(2) 0.72% 0.65% 0.65% 0.68% 0.71% Ratio of net investment income (loss) to average net assets....................... (0.10)%(2) (0.07)% (0.18)% (0.07)% 0.21% 0.55% Portfolio turnover rate................... 89%(1) 122% 114% 118% 105% 96%
* Amount represents less than $0.01 per share. (1) Not annualized (2) Annualized See Accompanying Notes to Financial Statements 33 FINANCIAL HIGHLIGHTS -------------------------------------------------------------------------------- COLUMBIA INTERNATIONAL STOCK FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
Six Months Ended June 30, 2002 (UNAUDITED) 2001 2000 1999 1998 1997 ------ ------ ------ ------ ------ --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $12.03 $14.77 $22.81 $15.45 $13.70 $13.86 --------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)............. 0.01 0.01 (0.04) (0.05) (0.00)* 0.03 Net realized and unrealized gains (losses) on investments and foreign currency transactions.................. (0.07) (2.74) (5.17) 9.00 1.76 1.56 --------------------------------------------------------------------------------------------------------------------------------- Total from investment operations....... (0.06) (2.73) (5.21) 8.95 1.76 1.59 --------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Dividends from net investment income..... -- (0.01) -- -- -- -- Distributions from capital gains......... -- -- (2.83) (1.59) (0.01) (1.75) --------------------------------------------------------------------------------------------------------------------------------- Total distributions.................... -- (0.01) (2.83) (1.59) (0.01) (1.75) --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $11.97 $12.03 $14.77 $22.81 $15.45 $13.70 --------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN.............................. -0.50%(1) -18.47% -22.64% 57.93% 12.83% 11.47% RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in thousands)............................... $141,621 $135,626 $175,316 $239,223 $134,193 $146,281 Ratio of expenses to average net assets... 1.65%(2) 1.56% 1.42% 1.48% 1.56% 1.62% Ratio of net investment income (loss) to average net assets....................... 0.33%(2) 0.06% (0.19)% (0.35)% (0.02)% 0.19% Portfolio turnover rate................... 40%(1) 130% 112% 94% 74% 122%
* 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, 2002 (UNAUDITED) 2001 2000 1999 1998 1997 ------ ------ ------ ------ ------ --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $19.60 $25.99 $29.93 $23.62 $20.26 $19.85 --------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)............. (0.08) (0.11) (0.10) (0.16) (0.03) 0.01 Net realized and unrealized gains (losses) on investments................ (2.42) (5.35) 4.45 8.74 3.40 2.50 --------------------------------------------------------------------------------------------------------------------------------- Total from investment operations....... (2.50) (5.46) 4.35 8.58 3.37 2.51 --------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Dividends from net investment income..... -- -- -- -- (0.01) -- Distributions from capital gains......... -- (0.93) (8.29) (2.27) (0.00)* (2.10) --------------------------------------------------------------------------------------------------------------------------------- Total distributions.................... -- (0.93) (8.29) (2.27) (0.01) (2.10) --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $17.10 $19.60 $25.99 $29.93 $23.62 $20.26 --------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN.............................. -12.76%(1) -20.98% 13.84% 36.33% 16.64% 12.64% RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in thousands)............................... $673,612 $786,071 $1,095,525 $918,322 $969,359 $1,249,718 Ratio of expenses to average net assets... 1.14%(2) 1.08% 0.99% 1.09% 1.03% 0.98% Ratio of net investment income (loss) to average net assets....................... (0.85)%(2) (0.49)% (0.38)% (0.64)% (0.09)% 0.04% Portfolio turnover rate................... 62%(1) 186% 169% 135% 135% 166%
* Amount represents less than $0.01 per share. (1) Not annualized (2) Annualized See Accompanying Notes to Financial Statements 34 FINANCIAL HIGHLIGHTS -------------------------------------------------------------------------------- COLUMBIA SMALL CAP FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
Six Months Ended June 30, 2002 (Unaudited) 2001 2000 1999 1998 1997 ------ ------ ------ ------ ------ --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $22.20 $25.87 $27.26 $17.43 $16.65 $12.99 --------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment loss...................... (0.09) (0.13) (0.10) (0.14) (0.09) (0.08) Net realized and unrealized gains (losses) on investments................ (3.06) (3.54) 1.75 10.45 0.87 4.51 --------------------------------------------------------------------------------------------------------------------------------- Total from investment operations....... (3.15) (3.67) 1.65 10.31 0.78 4.43 --------------------------------------------------------------------------------------------------------------------------------- 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 $19.05 $22.20 $25.87 $27.26 $17.43 $16.65 --------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN.............................. -14.19%(1) -14.19% 5.85% 59.15% 4.69% 34.10% RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in thousands)............................... $637,653 $617,966 $518,970 $290,374 $160,472 $96,431 Ratio of expenses to average net assets... 1.21%(2) 1.23% 1.22% 1.30% 1.34% 1.46% Ratio of net investment loss to average net assets............................... (0.90)%(2) (0.71)% (0.44)% (0.84)% (0.68)% (0.81)% Portfolio turnover rate................... 58%(1) 129% 145% 188% 158% 172%
* Amount represents less than $0.01 per share. (1) Not annualized (2) Annualized COLUMBIA REAL ESTATE EQUITY FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
Six Months Ended June 30, 2002 (Unaudited) 2001 2000 1999 1998 1997 ------ ------ ------ ------ ------ --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $18.04 $17.89 $14.57 $15.76 $18.80 $16.16 --------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income.................... 0.32 0.79 0.81 0.82 0.75 0.79 Net realized and unrealized gains (losses) on investments................ 1.65 0.15 3.32 (1.19) (3.04) 3.15 --------------------------------------------------------------------------------------------------------------------------------- Total from investment operations....... 1.97 0.94 4.13 (0.37) (2.29) 3.94 --------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Dividends from net investment income..... (0.33) (0.72) (0.75) (0.71) (0.66) (0.62) Distributions from capital gains......... -- -- -- -- -- (0.51) Return of capital........................ -- (0.07) (0.06) (0.11) (0.09) (0.17) --------------------------------------------------------------------------------------------------------------------------------- Total distributions.................... (0.33) (0.79) (0.81) (0.82) (0.75) (1.30) --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $19.68 $18.04 $17.89 $14.57 $15.76 $18.80 --------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN.............................. 10.95%(1) 5.41% 28.84% -2.45% -12.33% 24.74% RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in thousands)............................... $827,979 $621,590 $436,764 $241,716 $164,172 $151,554 Ratio of expenses to average net assets... 0.94%(2) 0.95% 0.96% 0.99% 1.01% 1.02% Ratio of net investment income to average net assets............................... 3.69%(2) 4.65% 5.16% 5.66% 4.60% 4.87% Portfolio turnover rate................... 22%(1) 41% 25% 29% 6% 34%
(1) Not annualized (2) Annualized See Accompanying Notes to Financial Statements 35 FINANCIAL HIGHLIGHTS -------------------------------------------------------------------------------- COLUMBIA TECHNOLOGY FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
Six Months Ended June 30, 2002 (Unaudited) 2001 2000(1) ------ --------- --------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $6.13 $8.63 $10.00 --------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)............. (0.04) (0.08) 0.01 Net realized and unrealized losses on investments............................ (1.48) (2.42) (1.37) --------------------------------------------------------------------------------------- Total from investment operations....... (1.52) (2.50) (1.36) --------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Dividends from net investment income..... -- -- (0.01) --------------------------------------------------------------------------------------- Total distributions.................... -- -- (0.01) --------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $4.61 $6.13 $8.63 --------------------------------------------------------------------------------------- TOTAL RETURN.............................. -24.80%(2) -28.97% -13.78%(2) RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in thousands)............................... $9,835 $10,385 $4,327 Ratio of expenses to average net assets... 1.65%(3) 1.69% 1.48%(3) Ratio of expenses to average net assets before voluntary reimbursement........... 2.73%(3) 2.82% 8.97%(3) Ratio of net investment income (loss) to average net assets....................... (1.43)%(3) (1.26)% 0.99%(3) Portfolio turnover rate................... 121%(2) 413% 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, 2002 (Unaudited) 2001 2000(1) ------ --------- --------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $14.52 $11.23 $10.00 --------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income.................... 0.05 0.05 0.02 Net realized and unrealized gains on investments............................ 0.28 3.29 1.23 --------------------------------------------------------------------------------------- Total from investment operations....... 0.33 3.34 1.25 --------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Dividends from net investment income..... -- (0.05) (0.02) --------------------------------------------------------------------------------------- Total distributions.................... -- (0.05) (0.02) --------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $14.85 $14.52 $11.23 --------------------------------------------------------------------------------------- TOTAL RETURN.............................. 2.27%(2) 29.76% 12.25%(2) RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in thousands)............................... $343,078 $139,504 $9,526 Ratio of gross expenses to average net assets................................... 0.94%(3) 1.13% 1.34%(3) Ratio of expenses to average net assets before voluntary reimbursement........... 0.94%(3) 1.13% 5.31%(3) Ratio of net investment income to average net assets............................... 0.74%(3) 0.71% 1.92%(3) Portfolio turnover rate................... 91%(2) 278% 64%(2)
(1) From inception of operations on October 27, 2000. (2) Not annualized (3) Annualized See Accompanying Notes to Financial Statements 36 FINANCIAL HIGHLIGHTS -------------------------------------------------------------------------------- COLUMBIA BALANCED FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
Six Months Ended June 30, 2002 (UNAUDITED) 2001 2000 1999 1998 1997 ------ ------ ------ ------ ------ --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $20.67 $22.96 $24.72 $23.17 $21.42 $20.32 --------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income.................... 0.26 0.58 0.67 0.69 0.72 0.84 Net realized and unrealized gains (losses) on investments................ (1.88) (2.28) (0.41) 2.21 3.52 2.92 --------------------------------------------------------------------------------------------------------------------------------- Total from investment operations....... (1.62) (1.70) 0.26 2.90 4.24 3.76 --------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Dividends from net investment income..... (0.26) (0.59) (0.68) (0.69) (0.73) (0.83) Distributions from capital gains......... -- -- (1.34) (0.66) (1.76) (1.83) --------------------------------------------------------------------------------------------------------------------------------- Total distributions.................... (0.26) (0.59) (2.02) (1.35) (2.49) (2.66) --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $18.79 $20.67 $22.96 $24.72 $23.17 $21.42 --------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN.............................. -7.88%(1) -7.40% 0.82% 12.70% 20.07% 18.74% RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in thousands)............................... $810,106 $983,749 $1,126,854 $1,040,940 $975,381 $792,378 Ratio of expenses to average net assets... 0.69%(2) 0.67% 0.65% 0.66% 0.67% 0.68% Ratio of net investment income to average net assets............................... 2.63%(2) 2.73% 2.73% 2.85% 3.22% 3.83% Portfolio turnover rate................... 58%(1) 111% 105% 133% 128% 149%
(1) Not annualized (2) Annualized COLUMBIA SHORT TERM BOND FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
Six Months Ended June 30, 2002 (UNAUDITED) 2001 2000 1999 1998 1997 ------ ------ ------ ------ ------ --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $8.55 $8.36 $8.20 $8.39 $8.29 $8.24 --------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income.................... 0.19 0.46 0.42 0.33 0.38 0.41 Net realized and unrealized gains (losses) on investments................ 0.04 0.21 0.16 (0.18) 0.14 0.05 --------------------------------------------------------------------------------------------------------------------------------- Total from investment operations....... 0.23 0.67 0.58 0.15 0.52 0.46 --------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Dividends from net investment income..... (0.19) (0.46) (0.42) (0.33) (0.38) (0.41) Distributions from capital gains......... -- (0.02) -- (0.01) (0.04) -- --------------------------------------------------------------------------------------------------------------------------------- Total distributions.................... (0.19) (0.48) (0.42) (0.34) (0.42) (0.41) --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $8.59 $8.55 $8.36 $8.20 $8.39 $8.29 --------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN.............................. 2.69%(1) 8.07% 7.26% 1.80% 6.43% 5.76% RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in thousands)............................... $85,574 $62,930 $35,856 $38,072 $40,578 $37,837 Ratio of expenses to average net assets... 0.75% 0.75% 0.88% 0.91% 0.89% 0.87% Ratio of expenses to average net assets before contractual reimbursement......... 0.86%(2) 0.91% 0.90% 0.91% 0.89% 0.87% Ratio of net investment income to average net assets............................... 4.42%(2) 5.26% 5.09% 4.09% 4.55% 4.99% Portfolio turnover rate................... 51%(1) 137% 147% 211% 182% 184%
(1) Not annualized (2) Annualized See Accompanying Notes to Financial Statements 37 FINANCIAL HIGHLIGHTS -------------------------------------------------------------------------------- COLUMBIA FIXED INCOME SECURITIES FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
Six Months Ended June 30, 2002 (UNAUDITED) 2001 2000 1999 1998 1997 ------ ------ ------ ------ ------ --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $13.22 $12.97 $12.44 $13.42 $13.41 $13.08 --------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income.................... 0.36 0.78 0.82 0.78 0.83 0.85 Net realized and unrealized gains (losses) on investments................ 0.03 0.25 0.53 (0.98) 0.14 0.36 --------------------------------------------------------------------------------------------------------------------------------- Total from investment operations....... 0.39 1.03 1.35 (0.20) 0.97 1.21 --------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Dividends from net investment income..... (0.36) (0.78) (0.82) (0.78) (0.83) (0.85) Distributions from capital gains......... -- -- -- (0.00)* (0.13) (0.03) --------------------------------------------------------------------------------------------------------------------------------- Total distributions.................... (0.36) (0.78) (0.82) (0.78) (0.96) (0.88) --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $13.25 $13.22 $12.97 $12.44 $13.42 $13.41 --------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN.............................. 3.00%(1) 8.13% 11.27% -1.50% 7.44% 9.56% RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in thousands)............................... $475,182 $465,743 $378,799 $397,147 $422,330 $381,333 Ratio of expenses to average net assets... 0.67%(2) 0.66% 0.66% 0.64% 0.65% 0.66% Ratio of net investment income to average net assets............................... 5.52%(2) 5.92% 6.53% 6.03% 6.15% 6.43% Portfolio turnover rate................... 67%(1) 110% 105% 155% 107% 196%
* 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, 2002 (Unaudited) 2001 2000 1999(1) ------ ------ --------- ----------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $9.77 $9.82 $9.28 $10.00 ----------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income.................... 0.21 0.44 0.44 0.34 Net realized and unrealized gains (losses) on investments................ 0.27 (0.03) 0.54 (0.72) -------------------------------------------------------------------------------------------------- Total from investment operations....... 0.48 0.41 0.98 (0.38) -------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Dividends from net investment income..... (0.21) (0.44) (0.44) (0.34) Distributions from capital gains......... -- (0.02) -- -- -------------------------------------------------------------------------------------------------- Total distributions.................... (0.21) (0.46) (0.44) (0.34) ----------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $10.04 $9.77 $9.82 $9.28 ----------------------------------------------------------------------------------------------------- TOTAL RETURN.............................. 4.97%(2) 4.16% 10.87% -3.93%(2) RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in thousands)............................... $13,712 $13,769 $10,898 $10,135 Ratio of expenses to average net assets... 0.65%(3) 0.65% 0.65% 0.65%(3) Ratio of expenses to average net assets before contractual reimbursement......... 1.12%(3) 1.31% 1.29% 1.72%(3) Ratio of net investment income to average net assets............................... 4.32%(3) 4.47% 4.68% 4.21%(3) Portfolio turnover rate................... 27%(2) 20% 21% 12%(3)
(1) From inception of operations on February 10, 1999. (2) Not annualized (3) Annualized See Accompanying Notes to Financial Statements 38 FINANCIAL HIGHLIGHTS -------------------------------------------------------------------------------- COLUMBIA OREGON MUNICIPAL BOND FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
Six Months Ended June 30, 2002 (UNAUDITED) 2001 2000 1999 1998 1997 ------ ------ ------ ------ ------ --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $12.08 $12.13 $11.56 $12.46 $12.47 $12.15 --------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income.................... 0.28 0.57 0.58 0.56 0.58 0.60 Net realized and unrealized gains (losses) on investments................ 0.30 (0.02) 0.58 (0.88) 0.10 0.39 --------------------------------------------------------------------------------------------------------------------------------- Total from investment operations....... 0.58 0.55 1.16 (0.32) 0.68 0.99 --------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Dividends from net investment income..... (0.28) (0.57) (0.58) (0.56) (0.58) (0.60) Distributions from capital gains......... -- (0.03) (0.01) (0.02) (0.11) (0.07) --------------------------------------------------------------------------------------------------------------------------------- Total distributions.................... (0.28) (0.60) (0.59) (0.58) (0.69) (0.67) --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $12.38 $12.08 $12.13 $11.56 $12.46 $12.47 --------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN.............................. 4.83%(1) 4.55% 10.28% -2.65% 5.58% 8.36% RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in thousands)............................... $498,639 $491,638 $436,544 $409,919 $462,809 $409,148 Ratio of expenses to average net assets... 0.58%(2) 0.57% 0.58% 0.57% 0.58% 0.57% Ratio of net investment income to average net assets............................... 4.59%(2) 4.64% 4.92% 4.64% 4.60% 4.87% Portfolio turnover rate................... 13%(1) 14% 22% 28% 17% 17%
(1) Not annualized (2) Annualized COLUMBIA HIGH YIELD FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
Six Months Ended June 30, 2002 (UNAUDITED) 2001 2000 1999 1998 1997 ------ ------ ------ ------ ------ --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $8.87 $8.98 $9.32 $9.84 $10.04 $9.94 --------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income.................... 0.31 0.69 0.75 0.74 0.76 0.81 Net realized and unrealized gains (losses) on investments................ (0.45) (0.11) (0.34) (0.51) (0.15) 0.40 --------------------------------------------------------------------------------------------------------------------------------- Total from investment operations....... (0.14) 0.58 0.41 0.23 0.61 1.21 --------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Dividends from net investment income..... (0.31) (0.69) (0.75) (0.74) (0.76) (0.81) Distributions from capital gains......... -- -- -- (0.01) (0.05) (0.30) --------------------------------------------------------------------------------------------------------------------------------- Total distributions.................... (0.31) (0.69) (0.75) (0.75) (0.81) (1.11) --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $8.42 $8.87 $8.98 $9.32 $9.84 $10.04 --------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN.............................. -1.67%(1) 6.63% 4.61% 2.38% 6.26% 12.70% RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in thousands)............................... $412,938 $238,994 $97,575 $71,678 $57,524 $39,278 Ratio of expenses to average net assets... 0.82%(2) 0.85% 0.93% 0.91% 0.95% 1.00% Ratio of expenses to average net assets before voluntary reimbursement........... 0.82%(2) 0.85% 0.93% 0.91% 0.95% 1.02% Ratio of net investment income to average net assets............................... 7.07%(2) 7.64% 8.22% 7.71% 7.52% 8.05% Portfolio turnover rate................... 19%(1) 69% 50% 49% 79% 124%
(1) Not annualized (2) Annualized See Accompanying Notes to Financial Statements 39 FINANCIAL HIGHLIGHTS -------------------------------------------------------------------------------- COLUMBIA DAILY INCOME COMPANY FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
Six Months Ended June 30, 2002 (UNAUDITED) 2001 2000 1999 1998 1997 ------ ------ ------ ------ ------ --------------------------------------------------------------------------------------------------------------------------------- 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.................... 0.006 0.036 0.058 0.046 0.050 0.050 --------------------------------------------------------------------------------------------------------------------------------- Total from investment operations....... 0.006 0.036 0.058 0.046 0.050 0.050 --------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Dividends from net investment income..... (0.006) (0.036) (0.058) (0.046) (0.050) (0.050) --------------------------------------------------------------------------------------------------------------------------------- Total distributions.................... (0.006) (0.036) (0.058) (0.046) (0.050) (0.050) --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 --------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN.............................. 0.62%(1) 3.70% 6.00% 4.71% 5.09% 5.11% RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in thousands)............................... $1,205,970 $1,253,535 $1,198,151 $1,165,289 $1,109,141 $1,169,096 Ratio of expenses to average net assets... 0.60%(2) 0.60% 0.60% 0.64% 0.62% 0.63% Ratio of net investment income to average net assets............................... 1.26%(2) 3.61% 5.82% 4.61% 4.97% 4.99%
(1) Not annualized (2) Annualized See Accompanying Notes to Financial Statements 40 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
COLUMBIA COMMON STOCK FUND JUNE 30, 2002 (UNAUDITED) SHARES VALUE ----------------------------------------------------------------------- COMMON STOCKS (98.0%) ADVERTISING AGENCIES (0.6%) Interpublic Group of Companies, Inc., The....................... 131,400 $ 3,253,464 --------------- AEROSPACE (1.3%) United Technologies Corp. ........ 99,450 6,752,655 --------------- AUTO PARTS: ORIGINAL EQUIPMENT (0.8%) Magna International, Inc. (Class A).............................. 61,050 4,203,293 --------------- AUTOMOBILES (0.6%) General Motors Corp. ............. 58,600 3,132,170 --------------- BANKS (4.0%) Bank of America Corp. ............ 182,705 12,855,124 Bank One Corp. ................... 223,650 8,606,052 --------------- 21,461,176 --------------- BANKS: NEW YORK CITY (1.9%) J.P. Morgan Chase & Co. .......... 292,110 9,908,371 --------------- BEVERAGE: SOFT DRINKS (0.5%) Pepsi Bottling Group, Inc. ....... 82,100 2,528,680 --------------- BIOTECH RESEARCH & PRODUCTS (2.4%) *Amgen, Inc....................... 73,700 3,086,556 Baxter International, Inc. ....... 221,750 9,854,570 --------------- 12,941,126 --------------- CABLE TELEVISION SERVICES (1.2%) *Liberty Media Corp. (Class A).... 666,464 6,664,640 --------------- CHEMICALS (2.1%) DuPont, E.I. de Nemours & Co...... 115,500 5,128,200 Praxair, Inc. .................... 103,200 5,879,304 --------------- 11,007,504 --------------- COMMUNICATIONS & MEDIA (0.7%) *AOL Time Warner, Inc. ........... 247,339 3,638,357 --------------- COMMUNICATIONS TECHNOLOGY (1.4%) *Cisco Systems, Inc. ............. 354,300 4,942,485 Motorola, Inc. ................... 193,500 2,790,270 --------------- 7,732,755 --------------- COMPUTER SERVICES SOFTWARE & SYSTEMS (3.6%) Adobe Systems, Inc. .............. 61,275 1,746,337 *Intuit, Inc. .................... 43,175 2,146,661 *Microsoft Corp................... 241,200 13,193,640 *Oracle Corp. .................... 254,550 2,410,589 --------------- 19,497,227 ---------------
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SHARES VALUE COMPUTER TECHNOLOGY (1.8%) *Apple Computer, Inc. ............ 265,650 $ 4,707,318 Hewlett-Packard Co. .............. 231,900 3,543,432 *Sun Microsystems, Inc. .......... 293,600 1,470,936 --------------- 9,721,686 --------------- CONSUMER PRODUCTS (1.7%) Alberto-Culver Co. (Class B)...... 26,900 1,285,820 Gillette Co. ..................... 227,150 7,693,570 --------------- 8,979,390 --------------- COSMETICS (0.5%) Lauder, Estee Companies, Inc., The (Class A)....................... 75,000 2,640,000 --------------- DIVERSIFIED FINANCIAL SERVICES (7.4%) American Express Co. ............. 316,400 11,491,648 Citigroup, Inc. .................. 514,339 19,930,636 Marsh & McLennan Companies, Inc. ........................... 37,050 3,579,030 Merrill Lynch & Co., Inc. ........ 71,000 2,875,500 Morgan Stanley.................... 40,650 1,751,202 --------------- 39,628,016 --------------- DRUGS & PHARMACEUTICALS (10.6%) Abbott Laboratories............... 136,250 5,129,812 AmerisourceBergen Corp. .......... 75,600 5,745,600 Bristol-Myers Squibb Co. ......... 200,468 5,152,028 *MedImmune, Inc. ................. 57,800 1,525,920 Pfizer, Inc. ..................... 597,374 20,908,090 Pharmacia Corp. .................. 330,500 12,377,225 Teva Pharmaceutical Industries Ltd. ADR........................ 88,805 5,930,398 --------------- 56,769,073 --------------- ELECTRONICS: EQUIPMENT & COMPONENTS (0.6%) Koninklijke Philips Electronics NV.............................. 124,500 3,436,200 --------------- ELECTRONICS: SEMICONDUCTORS (1.8%) *Atmel Corp. ..................... 201,200 1,259,512 Intel Corp. ...................... 51,300 937,251 *Microchip Technology, Inc. ...... 37,500 1,028,625 *Micron Technology, Inc. ......... 37,475 757,744 *National Semiconductor Corp. .... 199,750 5,826,708 --------------- 9,809,840 --------------- ELECTRONICS: TECHNOLOGY (1.2%) Raytheon Co. ..................... 157,350 6,412,012 --------------- ENTERTAINMENT (1.2%) *Viacom, Inc. (Class B)........... 144,300 6,402,591 --------------- FINANCE COMPANIES (0.4%) Capital One Financial Corp. ...... 38,200 2,332,110 ---------------
See Accompanying Notes to Financial Statements 41 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
COLUMBIA COMMON STOCK FUND (CONT.) JUNE 30, 2002 (UNAUDITED) SHARES VALUE ----------------------------------------------------------------------- FINANCE: SMALL LOAN (0.5%) SLM Corp. ........................ 25,300 $ 2,451,570 --------------- FINANCIAL DATA PROCESSING SERVICES (1.4%) Automatic Data Processing, Inc.... 29,800 1,297,790 First Data Corp. ................. 162,200 6,108,452 --------------- 7,406,242 --------------- FINANCIAL MISCELLANEOUS (1.5%) Freddie Mac....................... 50,250 3,075,300 MBNA Corp. ....................... 141,900 4,692,633 --------------- 7,767,933 --------------- FOODS (0.4%) Sara Lee Corp. ................... 109,300 2,255,952 --------------- FOREST PRODUCTS (0.5%) Weyerhaeuser Co. ................. 45,200 2,886,020 --------------- HEALTH CARE FACILITIES (1.9%) HCA, Inc. ........................ 54,100 2,569,750 *HEALTHSOUTH Corp. ............... 170,100 2,175,579 *Laboratory Corporation of America Holdings........................ 121,500 5,546,475 --------------- 10,291,804 --------------- HEALTH CARE MANAGEMENT SERVICES (0.3%) Aetna, Inc. ...................... 36,600 1,755,702 --------------- INSURANCE: LIFE (2.0%) *Anthem, Inc. .................... 54,000 3,629,880 *Principal Financial Group, Inc. ........................... 139,900 4,336,900 *Prudential Financial, Inc. ...... 83,200 2,775,552 --------------- 10,742,332 --------------- INSURANCE: MULTI-LINE (1.9%) American International Group, Inc. ........................... 150,137 10,243,848 --------------- INSURANCE: PROPERTY-CASUALTY (1.3%) *Berkshire Hathaway, Inc. (Class A).............................. 50 3,340,000 Chubb Corp........................ 50,100 3,547,080 --------------- 6,887,080 --------------- LEISURE TIME (0.8%) Carnival Corp. ................... 149,300 4,134,117 --------------- MACHINERY: OIL WELL EQUIPMENT & SERVICES (1.4%) GlobalSantaFe Corp. .............. 97,625 2,670,044 *Noble Corp. ..................... 77,600 2,995,360 Rowan Companies, Inc. ............ 81,750 1,753,537 --------------- 7,418,941 ---------------
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SHARES VALUE MACHINERY: SPECIALTY (0.2%) Constellation Energy Group, Inc. ........................... 37,100 $ 1,088,514 --------------- MEDICAL & DENTAL SUPPLIES (0.9%) Beckman Coulter, Inc. ............ 94,550 4,718,045 --------------- MISCELLANEOUS EQUIPMENT (0.4%) Grainger, W.W., Inc. ............. 47,000 2,354,700 --------------- MULTI-SECTOR COMPANIES (8.1%) 3M Co............................. 81,100 9,975,300 Eaton Corp. ...................... 19,400 1,411,350 General Electric Co. ............. 454,550 13,204,677 Honeywell International, Inc. .... 183,900 6,478,797 Illinois Tool Works, Inc. ........ 69,800 4,810,616 ITT Industries, Inc. ............. 20,900 1,475,540 *SPX Corp. ....................... 45,625 5,360,938 Tyco International Ltd. .......... 33,766 456,179 --------------- 43,173,397 --------------- OIL: CRUDE PRODUCERS (2.3%) Apache Corp. ..................... 75,530 4,341,464 Devon Energy Corp. ............... 83,100 4,095,168 EOG Resources, Inc. .............. 96,900 3,846,930 --------------- 12,283,562 --------------- OIL: INTEGRATED DOMESTIC (0.4%) Phillips Petroleum Co. ........... 38,850 2,287,488 --------------- OIL: INTEGRATED INTERNATIONAL (3.8%) ChevronTexaco Corp. .............. 26,100 2,309,850 Exxon Mobil Corp. ................ 319,732 13,083,433 Royal Dutch Petroleum Co. ........ 88,900 4,913,503 --------------- 20,306,786 --------------- PAPER (1.0%) Bowater, Inc. .................... 38,200 2,076,934 International Paper Co. .......... 74,700 3,255,426 --------------- 5,332,360 --------------- PRODUCTION TECHNOLOGY EQUIPMENT (2.1%) *Applied Materials, Inc. ......... 145,900 2,775,018 *Taiwan Semiconductor Manufacturing Company Ltd. ADR............................. 445,720 5,794,360 *United Microelectronics Corp. ADR............................. 379,900 2,792,265 --------------- 11,361,643 --------------- RADIO & TELEVISION BROADCASTERS (0.5%) *Clear Channel Communications, Inc. ........................... 83,625 2,677,672 --------------- RAILROADS (0.6%) Union Pacific Corp. .............. 51,400 3,252,592 --------------- RESTAURANTS (1.3%) McDonald's Corp. ................. 243,900 6,938,955 ---------------
See Accompanying Notes to Financial Statements 42 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
SHARES OR PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- RETAIL (8.2%) Circuit City Group................ 325,005 $ 6,093,844 Gap, Inc., The.................... 509,400 7,233,480 *Kohl's Corp. .................... 94,450 6,619,056 Nordstrom, Inc. .................. 147,850 3,348,803 Sears, Roebuck & Co. ............. 81,300 4,414,590 Wal-Mart Stores, Inc. ............ 298,150 16,401,231 --------------- 44,111,004 --------------- SECURITY BROKERAGE & SERVICES (0.6%) Franklin Resources, Inc. ......... 70,900 3,023,176 --------------- SERVICES: COMMERCIAL (2.0%) *Accenture Ltd. (Class A)......... 209,750 3,985,250 Waste Management, Inc. ........... 256,200 6,674,010 --------------- 10,659,260 --------------- TOBACCO (0.9%) Carolina Group.................... 61,250 1,656,813 UST, Inc. ........................ 99,500 3,383,000 --------------- 5,039,813 --------------- TRANSPORTATION MISCELLANEOUS (0.6%) United Parcel Service, Inc. (Class B).............................. 54,500 3,365,375 --------------- UTILITIES: CABLE TELEVISION & RADIO (0.7%) *Comcast Corp. (Class A Special)........................ 151,400 3,609,376 --------------- UTILITIES: TELECOMMUNICATIONS (1.2%) AT&T Corp......................... 134,700 1,441,290 SBC Communications, Inc. ......... 165,550 5,049,275 --------------- 6,490,565 --------------- Total Common Stocks (Cost $508,218,247)................. 525,168,160 --------------- PREFERRED STOCK (1.2%) COMMUNICATIONS & MEDIA News Corporation Ltd., The ADR (Cost $7,225,803)............... 314,950 6,220,263 --------------- REPURCHASE AGREEMENT (1.8%) J.P. Morgan Securities, Inc. 1.85% dated 06/28/2002, due 07/01/2002 in the amount of $9,452,559. Collateralized by U.S. Treasury Bills due 07/05/2002 to 11/29/2014 U.S. Treasury Strips due 02/15/2010 to 08/15/2028 (Cost $9,451,120)............... $ 9,451,120 9,451,120 ---------------
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VALUE TOTAL INVESTMENTS (101.0%) (Cost $524,895,170)................. $ 540,839,543 OTHER ASSETS LESS LIABILITIES (-1.0%)............................. (5,114,242) --------------- NET ASSETS (100.0%).................. $ 535,725,301 =============== * Non-income producing
COLUMBIA GROWTH FUND JUNE 30, 2002 (UNAUDITED) SHARES VALUE ----------------------------------------------------------------------- COMMON STOCKS (99.0%) BANKS: NEW YORK CITY (1.0%) J.P. Morgan Chase & Co. .......... 274,400 $ 9,307,648 --------------- BEVERAGE: SOFT DRINKS (4.1%) Coca-Cola Co. .................... 357,900 20,042,400 Pepsi Bottling Group, Inc. ....... 158,400 4,878,720 PepsiCo, Inc. .................... 286,600 13,814,120 --------------- 38,735,240 --------------- BIOTECH RESEARCH & PRODUCTS (3.5%) *Amgen, Inc. ..................... 201,300 8,430,444 Baxter International, Inc. ....... 550,200 24,450,888 --------------- 32,881,332 --------------- CABLE TELEVISION SERVICES (1.0%) *Liberty Media Corp. (Class A).... 895,325 8,953,250 --------------- COMMUNICATIONS & MEDIA (0.9%) *AOL Time Warner, Inc. ........... 553,895 8,147,795 --------------- COMMUNICATIONS TECHNOLOGY (2.0%) *Cisco Systems, Inc. ............. 1,336,550 18,644,873 --------------- COMPUTER SERVICES SOFTWARE & SYSTEMS (7.9%) Adobe Systems, Inc. .............. 233,875 6,665,438 *BEA Systems, Inc. ............... 288,500 2,714,785 *Intuit, Inc. .................... 160,825 7,996,219 *Microsoft Corp. ................. 938,400 51,330,480 *Rational Software Corp. ......... 424,450 3,484,734 *Siebel Systems, Inc. ............ 148,200 2,107,404 --------------- 74,299,060 --------------- COMPUTER TECHNOLOGY (2.8%) *Apple Computer, Inc. ............ 384,750 6,817,770 *Dell Computer Corp. ............. 604,900 15,812,086 *Sun Microsystems, Inc. .......... 784,500 3,930,345 --------------- 26,560,201 --------------- CONSUMER ELECTRONICS (1.3%) *Electronic Arts, Inc. ........... 181,550 11,991,378 ---------------
See Accompanying Notes to Financial Statements 43 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
COLUMBIA GROWTH FUND (CONT.) JUNE 30, 2002 (UNAUDITED) SHARES VALUE ----------------------------------------------------------------------- CONSUMER PRODUCTS (2.3%) Alberto-Culver Co. (Class B)...... 75,200 $ 3,594,560 Gillette Co. ..................... 523,200 17,720,784 --------------- 21,315,344 --------------- CONTAINERS: PAPER & PLASTIC (0.3%) Temple-Inland, Inc. .............. 49,600 2,869,856 --------------- COSMETICS (0.7%) Lauder, Estee Companies, Inc., The (Class A)....................... 179,400 6,314,880 --------------- DIVERSIFIED FINANCIAL SERVICES (2.1%) Citigroup, Inc. .................. 225,400 8,734,250 Goldman Sachs Group, Inc. ........ 156,600 11,486,610 --------------- 20,220,860 --------------- DRUG & GROCERY STORE CHAINS (1.1%) Walgreen Co. ..................... 262,400 10,136,512 --------------- DRUGS & PHARMACEUTICALS (15.9%) Abbott Laboratories............... 345,250 12,998,663 AmerisourceBergen Corp. .......... 108,900 8,276,400 Johnson & Johnson................. 453,400 23,694,684 *MedImmune, Inc. ................. 350,600 9,255,840 Pfizer, Inc. ..................... 1,414,475 49,506,625 Pharmacia Corp. .................. 553,850 20,741,682 Teva Pharmaceutical Industries Ltd. ADR........................ 117,000 7,813,260 Wyeth............................. 341,850 17,502,720 --------------- 149,789,874 --------------- ELECTRONICS (1.1%) Samsung Electronics Co., Ltd. GDR (144A).......................... 72,500 9,954,250 --------------- ELECTRONICS: SEMICONDUCTORS (4.5%) *Atmel Corp. ..................... 436,850 2,734,681 *Celestica, Inc. ................. 307,550 6,984,461 *Flextronics International Ltd. ........................... 391,950 2,794,603 Intel Corp. ...................... 585,700 10,700,739 *Microchip Technology, Inc. ...... 177,000 4,855,110 *Micron Technology, Inc. ......... 220,400 4,456,488 *National Semiconductor Corp. .... 337,350 9,840,499 --------------- 42,366,581 --------------- ELECTRONICS: TECHNOLOGY (1.3%) Raytheon Co. ..................... 288,900 11,772,675 ---------------
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SHARES VALUE ENTERTAINMENT (3.0%) *Fox Entertainment Group, Inc. ... 234,700 $ 5,104,725 *Viacom, Inc. (Class B)........... 518,100 22,988,097 --------------- 28,092,822 --------------- FINANCE COMPANIES (1.4%) Capital One Financial Corp. ...... 217,200 13,260,060 --------------- FINANCE: SMALL LOAN (0.6%) SLM Corp. ........................ 59,600 5,775,240 --------------- FINANCIAL DATA PROCESSING SERVICES (2.4%) *Concord EFS, Inc. ............... 131,600 3,966,424 First Data Corp. ................. 364,850 13,740,251 Paychex, Inc. .................... 156,550 4,898,449 --------------- 22,605,124 --------------- FINANCIAL MISCELLANEOUS (2.2%) Fannie Mae........................ 67,800 5,000,250 Freddie Mac....................... 94,400 5,777,280 MBNA Corp. ....................... 306,500 10,135,955 --------------- 20,913,485 --------------- FOODS (0.8%) Kraft Foods, Inc. (Class A)....... 186,300 7,628,985 --------------- HEALTH CARE FACILITIES (1.8%) HCA, Inc. ........................ 76,100 3,614,750 *Laboratory Corporation of America Holdings........................ 187,350 8,552,528 *Tenet Healthcare Corp. .......... 65,400 4,679,370 --------------- 16,846,648 --------------- HEALTH CARE MANAGEMENT SERVICES (0.4%) UnitedHealth Group, Inc. ......... 44,000 4,028,200 --------------- HEALTH CARE SERVICES (0.8%) McKesson Corp. ................... 233,000 7,619,100 --------------- INSURANCE: LIFE (1.2%) *Anthem, Inc. .................... 173,300 11,649,226 --------------- INSURANCE: MULTI-LINE (2.1%) American International Group, Inc. ........................... 290,944 19,851,109 --------------- LEISURE TIME (0.8%) Carnival Corp. ................... 278,000 7,697,820 --------------- MACHINERY: OIL WELL EQUIPMENT & SERVICES (1.9%) *BJ Services Co. ................. 152,400 5,163,312 GlobalSantaFe Corp. .............. 77,200 2,111,420 *Noble Corp. ..................... 214,850 8,293,210 Rowan Companies, Inc. ............ 128,100 2,747,745 --------------- 18,315,687 ---------------
See Accompanying Notes to Financial Statements 44 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
SHARES VALUE ----------------------------------------------------------------------- MULTI-SECTOR COMPANIES (5.3%) 3M Co. ........................... 60,500 $ 7,441,500 General Electric Co. ............. 1,103,650 32,061,032 Tyco International Ltd. .......... 765,800 10,345,958 --------------- 49,848,490 --------------- OIL: CRUDE PRODUCERS (0.3%) Anadarko Petroleum Corp. ......... 63,000 3,105,900 --------------- PAPER (0.3%) Bowater, Inc. .................... 54,100 2,941,417 --------------- PRODUCTION TECHNOLOGY EQUIPMENT (2.4%) *Applied Materials, Inc. ......... 150,300 2,858,706 *ASML Holding NV.................. 145,600 2,201,472 *Novellus Systems, Inc. .......... 71,450 2,429,300 *Taiwan Semiconductor Manufacturing Company Ltd. ADR............................. 787,270 10,234,510 *United Microelectronics Corp. ADR............................. 646,600 4,752,510 --------------- 22,476,498 --------------- RADIO & TELEVISION BROADCASTERS (0.8%) *Clear Channel Communications, Inc. ........................... 232,831 7,455,249 --------------- RETAIL (12.9%) *AutoZone, Inc. .................. 133,950 10,354,335 *Bed, Bath & Beyond, Inc. ........ 276,750 10,444,545 *Best Buy Co., Inc. .............. 89,250 3,239,775 Circuit City Group................ 577,200 10,822,500 Gap, Inc., The.................... 1,111,900 15,788,980 Home Depot, Inc. ................. 239,300 8,789,489 *Kohl's Corp. .................... 240,694 16,867,836 Lowe's Companies, Inc. ........... 210,900 9,574,860 Wal-Mart Stores, Inc. ............ 641,050 35,264,160 --------------- 121,146,480 --------------- SECURITY BROKERAGE & SERVICES (0.5%) Franklin Resources, Inc. ......... 106,200 4,528,368 --------------- SERVICES: COMMERCIAL (1.3%) *Accenture Ltd. (Class A)......... 515,775 9,799,725 *eBay, Inc. ...................... 46,150 2,843,763 --------------- 12,643,488 ---------------
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SHARES OR PRINCIPAL AMOUNT VALUE TOBACCO (0.9%) UST, Inc. ........................ 261,900 $ 8,904,600 --------------- UTILITIES: CABLE TELEVISION & RADIO (1.1%) *Comcast Corp. (Class A Special)........................ 441,400 10,522,976 --------------- Total Common Stocks (Cost $902,032,204)....................... 932,118,581 --------------- PREFERRED STOCK (1.0%) COMMUNICATIONS & MEDIA News Corporation Ltd., The ADR (Cost $12,066,158).............. 508,900 10,050,775 --------------- CONVERTIBLE BONDS (0.7%) TECHNOLOGY Juniper Networks, Inc. 4.75% 03/15/2007...................... $ 6,870,000 4,242,225 ONI Systems Corp. 5.00% 10/15/2005...................... 3,270,000 2,231,775 --------------- (Cost $7,728,862)................. 6,474,000 --------------- REPURCHASE AGREEMENT (1.3%) J.P. Morgan Securities, Inc. 1.85% dated 06/28/2002, due 07/01/2002 in the amount of $12,306,613. Collateralized by U.S. Treasury Bills due 07/05/2002 to 11/29/2014 U.S. Treasury Strips due 02/15/2010 to 08/15/2028 (Cost $12,304,733).............. 12,304,733 12,304,733 --------------- TOTAL INVESTMENTS (102.0%) (Cost $934,131,957)....................... 960,948,089 OTHER ASSETS LESS LIABILITIES (-2.0%)............................. (19,217,357) --------------- NET ASSETS (100.0%).................. $ 941,730,732 =============== * Non-income producing
See Accompanying Notes to Financial Statements 45 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
COLUMBIA INTERNATIONAL STOCK FUND JUNE 30, 2002 (UNAUDITED) SHARES VALUE ---------------------------------------------------------------------- COMMON STOCKS (91.3%) AUSTRALIA (2.0%) Amcor Ltd. (Containers & Packaging).... 88,400 $ 408,915 Perpetual Trustees Australia Ltd. (Diversified Financials)............. 27,250 656,262 Toll Holdings Ltd. (Road & Rail)....... 37,300 663,775 Wesfarmers Ltd. (Industrial Conglomerates)....................... 72,550 1,107,795 ------------ 2,836,747 ------------ CANADA (0.6%) Bombardier, Inc. (Class B) (Aerospace & Defense)............................. 100,300 830,948 ------------ FINLAND (2.0%) Nokia Corp., ADR (Communications Equipment)........................... 32,800 474,944 Stora Enso Oyj (Paper & Forest Products)............................ 73,400 1,028,657 Upm-Kymmene Oyj (Paper & Forest Products)............................ 34,100 1,342,406 ------------ 2,846,007 ------------ FRANCE (6.3%) Aventis SA (Pharmaceuticals)........... 14,800 1,048,759 BNP Paribas (Banks).................... 33,400 1,847,254 Lafarge SA (Construction Materials).... 7,300 728,176 *Orange SA (Wireless Telecommunication Services)............................ 144,900 666,878 Pechiney SA (Class A) (Metals & Mining).............................. 17,100 781,088 STMicroelectronics NV (Semiconductor Equipment & Products)................ 19,800 481,734 *Thomson Multimedia (Household Durables)............................ 46,900 1,109,355 Total Fina Elf SA (Oil & Gas).......... 9,029 1,465,999 *Wavecom SA (Communications Equipment)........................... 20,700 837,175 ------------ 8,966,418 ------------ GERMANY (4.3%) Altana AG (Pharmaceuticals)............ 26,900 1,459,597 BASF AG (Chemicals).................... 16,200 754,378 Bayerische Motoren Werke (BMW) AG (Automobiles)........................ 28,400 1,153,076 DaimlerChrysler AG (Automobiles)....... 16,700 805,441
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SHARES VALUE Muenchener Rueckversicherungs- Gesellschaft AG (Insurance).......... 5,550 $ 1,315,517 Puma AG Rudolf Dassler Sport (Textiles & Apparel)........................... 8,300 601,189 ------------ 6,089,198 ------------ HONG KONG (1.3%) Tracker Fund of Hong Kong (Diversified Financials).......................... 1,324,700 1,817,284 ------------ IRELAND (0.5%) CRH plc (Construction Materials)....... 45,300 738,200 ------------ ITALY (4.9%) Autostrade S.p.A (Transportation Infrastructure)...................... 201,600 1,670,493 Eni S.p.A (Oil & Gas).................. 97,450 1,549,529 Luxottica Group S.p.A, ADR (Health Care Equipment & Supplies)................ 47,400 900,600 Riunione Adriatica di Sicurta S.p.A (Insurance).......................... 96,100 1,289,837 Unicredito Italiano S.p.A (Banks)...... 329,500 1,490,435 ------------ 6,900,894 ------------ JAPAN (21.3%) Advantest Corp. (Semiconductor Equipment & Instruments)............. 13,200 821,585 AEON Co., Ltd. (Multiline Retail)...... 73,000 1,949,004 Canon, Inc. (Office Electronics)....... 53,000 2,003,153 Daimaru, Inc., The (Consumer Discretionary)....................... 152,000 698,772 Hankyu Department Stores, Inc. (Consumer Discretionary)............. 92,000 700,040 Honda Motor Co., Ltd. (Automobiles).... 31,100 1,261,063 Ito-Yokado Co., Ltd. (Multiline Retail).............................. 42,000 2,102,522 Keyence Corp. (Electronic Equipment & Instruments)......................... 7,500 1,588,781 Komatsu Ltd. (Machinery)............... 325,000 1,163,270 Mitsubishi Heavy Inds., Ltd. (Machinery).......................... 303,000 917,676 NEC Corp. (Computers & Peripherals).... 95,000 661,043 Net One Systems Co., Ltd. (IT Consulting & Services)............... 88 493,392 Nidec Corp. (Electrical Equipment & Instruments)......................... 14,000 1,015,051 Nissin Healthcare Food Service Co., Ltd. (Hotels, Restaurants & Leisure)............................. 48,000 1,133,359 Nitto Denko Corp. (Electrical Equipment)........................... 39,200 1,285,342 NSK Ltd. (Machinery)................... 180,000 747,897 NTT DOCOMO, Inc. (Wireless Telecommunication Services).......... 385 947,595 Olympus Optical Co., Ltd. (Health Care Equipment & Supplies)................ 62,000 865,939
See Accompanying Notes to Financial Statements 46 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
SHARES VALUE ---------------------------------------------------------------------- Pioneer Corp. (Household Durables)..... 25,000 $ 447,412 Ricoh Co., Ltd. (Office Electronics)... 37,000 640,560 Rohm Co., Ltd. (Semiconductor Equipment & Products).......................... 12,000 1,791,148 Seven-Eleven Japan Co., Ltd. (Food & Drug Retailing)...................... 41,000 1,614,603 Shimamura Co., Ltd. (Specialty Retail).............................. 18,000 1,381,657 Sony Corp. (Household Durables)........ 38,000 2,006,907 Sumitomo Bakelite Co., Ltd. (Chemicals).......................... 173,300 1,256,488 Toyota Motor Corp. (Automobiles)....... 25,000 663,296 ------------ 30,157,555 ------------ KOREA (4.4%) CJ39 Shopping (Internet & Catalog Retail).............................. 10,000 684,977 Humax Co., Ltd. (Household Durables)... 11,600 253,125 Hyundai Motor Co., Ltd. (Automobiles)........................ 9,300 279,473 Kookmin Bank (Banks)................... 29,000 1,407,860 Pacific Corp. (Personal Products)...... 16,500 1,920,262 Samsung Electronics (Semiconductor Equipment & Products)................ 3,800 1,039,269 Shinsegae Co., Ltd. (Multiline Retail).............................. 3,500 593,535 ------------ 6,178,501 ------------ MEXICO (2.1%) *Corporacion Geo SA de CV (Household Durables)............................ 286,000 589,561 *Grupo Televisa SA (CPO) (Media)....... 428,500 810,061 Wal-Mart de Mexico SA de CV (Multiline Retail).............................. 596,000 1,618,749 ------------ 3,018,371 ------------ NETHERLANDS (5.5%) ABN Amro Holding NV (Banks)............ 60,100 1,091,562 *ASML Holding NV (Semiconductor Equipment & Products)................ 38,900 588,168 ING Groep NV (CVA) (Diversified Financials).......................... 45,700 1,173,496 Koninklijke Philips Electronic NV (Household Durables)................. 40,900 1,141,935 Royal Dutch Petroleum Co. (Oil & Gas)................................. 24,900 1,386,981 TPG NV (Air Freight & Couriers)........ 47,300 1,068,364 Unilever NV (CVA) (Food Products)...... 19,700 1,289,947 ------------ 7,740,453 ------------ SINGAPORE (3.0%) City Developments Ltd. (Real Estate)... 257,000 829,168 *Neptune Orient Lines Ltd. (Marine).... 1,766,500 1,019,879
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SHARES VALUE Singapore Airlines Ltd. (Airlines)..... 191,100 $ 1,395,356 Want Want Holdings Ltd. (Food Products)............................ 1,066,000 1,028,690 ------------ 4,273,093 ------------ SPAIN (2.9%) *Amadeus Global Travel Distribution SA (Class A) (Commercial Services & Supplies)............................ 231,900 $ 1,484,116 Grupo Ferrovial SA (Construction & Engineering)......................... 60,400 1,647,007 Indra Sistemas SA (IT Consulting & Services)............................ 106,100 916,886 ------------ 4,048,009 ------------ SWEDEN (0.9%) Svenska Cellulosa AB (Class B) (Paper & Forest Products)..................... 35,700 1,270,258 ------------ SWITZERLAND (5.9%) Givaudan SA (Chemicals)................ 3,500 1,411,148 *Logitech International SA (Computers & Peripherals)......................... 36,700 1,706,575 Nestle SA (Food Products).............. 5,850 1,364,076 Novartis AG (Pharmaceuticals).......... 44,400 1,952,747 Synthes-Stratec, Inc. (Health Care Equipment & Supplies)................ 1,300 794,947 UBS AG (Banks)......................... 22,200 1,116,601 ------------ 8,346,094 ------------ TAIWAN (0.4%) *ASE Test Ltd. (Semiconductor Equipment & Products).......................... 57,800 560,660 ------------ THAILAND (3.4%) BEC World Public Co. Ltd. (NVDR) (Media).............................. 125,800 727,017 *Big C Supercenter Public Co. Ltd. (NVDR) (Food & Drug Retailing)....... 2,815,000 1,416,697 *Land & Houses Public Co. Ltd. (NVDR) (Durables)........................... 520,700 940,375 *Siam Commercial Bank (Foreign) (Banks).............................. 519,000 365,549 *Srithai Superware Public Co. Ltd. (NVDR) (Household Durables).......... 3,500,000 678,448 Thai Fund, Inc. (Diversified Financials).......................... 37,100 172,886 *Tipco Asphalt Public Co. Ltd. (NVDR) (Construction Materials)............. 556,000 502,063 ------------ 4,803,035 ------------ UNITED KINGDOM (19.2%) BAE Systems plc (Aerospace & Defense)............................. 246,000 1,256,194 Barclays plc (Banks)................... 242,956 2,044,292 BP plc, ADR (Oil & Gas)................ 36,200 1,827,738
See Accompanying Notes to Financial Statements 47 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
COLUMBIA INTERNATIONAL STOCK FUND (CONT.) JUNE 30, 2002 (UNAUDITED) SHARES VALUE ---------------------------------------------------------------------- Capita Group plc (Commercial Services & Supplies)............................ 171,700 $ 816,585 Centrica plc (Gas Utilities)........... 445,800 1,379,470 Compass Group plc (Hotels, Restaurants & Leisure)........................... 134,235 814,376 Diageo plc (Beverages)................. 96,100 1,248,071 *easyJet plc (Airlines)................ 136,927 778,717 Exel plc (Air Freight & Couriers)...... 81,600 1,039,233 GlaxoSmithKline plc (Pharmaceuticals).................... 41,926 906,225 Legal & General Group plc (Insurance).......................... 618,300 1,232,302 National Grid Group plc (Electric Utilities)........................... 144,100 1,023,590 Next plc (Multiline Retail)............ 57,000 809,780 *Powderject Pharmaceuticals plc (Biotechnology)...................... 111,500 713,839 Reckitt Benckiser plc (Household Products)............................ 61,400 1,101,593 Rio Tinto plc (Metals & Mining)........ 52,800 968,224 Royal Bank of Scotland Group plc (Banks) ............................. 76,217 2,160,932 *Shire Pharmaceuticals Group plc (Pharmaceuticals).................... 99,200 877,033 Smith & Nephew plc (Health Care Equipment & Supplies)................ 259,200 1,438,178 Smiths Group plc (Industrial Conglomerates)....................... 82,900 1,076,640 Standard Chartered plc (Banks)......... 82,600 881,362 Tesco plc (Food & Drug Retailing)...... 246,400 895,788 Vodafone Group plc (Wireless Telecommunication Services).......... 819,200 1,123,851 WPP Group plc (Media).................. 91,600 773,538 ------------ 27,187,551 ------------ UNITED STATES (0.5%) *Resmed, Inc. (Health Care Equipment & Supplies)............................ 24,500 720,300 ------------ Total Common Stocks (Cost $124,832,978)...................... 129,329,576 ------------ PREFERRED STOCK (0.8%) GERMANY Wella AG (Personal Products) (Cost $920,407)...................... 18,850 1,119,796 ------------
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PRINCIPAL AMOUNT VALUE REPURCHASE AGREEMENT (3.5%) J.P. Morgan Securities, Inc. 1.85% dated 06/28/2002, due 07/01/2002 in the amount of $4,918,005. Collateralized by U.S. Treasury Bills due 07/05/2002 to 11/29/2014, U.S. Treasury Strips due 02/15/2010 to 08/15/2028 (Cost $4,917,256).................... $4,917,256 $ 4,917,256 ------------ TOTAL INVESTMENTS (95.6%) (Cost $130,670,641)...................... 135,366,628 OTHER ASSETS LESS LIABILITIES (4.4%)...... 6,254,376 ------------ NET ASSETS (100%)......................... $141,621,004 ============ * Non-income producing
% OF NET SECTOR DIVERSIFICATION ASSETS VALUE ---------------------------------------------------------------------- COMMON/PREFERRED STOCKS Consumer Discretionary.................. 18.9% $ 26,728,042 Industrials............................. 14.8 20,984,336 Financials.............................. 14.8 20,892,599 Information Technology.................. 10.3 14,605,074 Consumer Staples........................ 9.2 12,999,524 Health Care............................. 8.2 11,678,164 Materials............................... 7.9 11,190,001 Energy.................................. 4.4 6,230,247 Telecommunication Services.............. 1.9 2,738,324 Utilities............................... 1.7 2,403,061 ----- -------------- TOTAL COMMON/PREFERRED STOCKS............ 92.1 130,449,372 REPURCHASE AGREEMENT..................... 3.5 4,917,256 ----- -------------- TOTAL INVESTMENTS........................ 95.6 135,366,628 OTHER ASSETS LESS LIABILITIES............ 4.4 6,254,376 ----- -------------- NET ASSETS............................... 100.0% $ 141,621,004 ===== ==============
COLUMBIA SPECIAL FUND JUNE 30, 2002 (UNAUDITED) SHARES VALUE ---------------------------------------------------------------------- COMMON STOCKS (87.2%) ADVERTISING AGENCIES (1.2%) *Valassis Communications, Inc. ....... 226,500 $ 8,267,250 ------------ AUTO TRUCKS & PARTS (1.1%) *Gentex Corp. ........................ 277,300 7,617,431 ------------
See Accompanying Notes to Financial Statements 48 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
SHARES VALUE ---------------------------------------------------------------------- BANKS (2.0%) Investors Financial Services Corp. ... 189,200 $ 6,345,768 M & T Bank Corp. ..................... 82,980 7,116,365 ------------ 13,462,133 ------------ BIOTECH RESEARCH & PRODUCTS (0.5%) *Genentech, Inc. ..................... 103,230 3,458,205 ------------ BUILDING MATERIALS (1.3%) Martin Marietta Materials, Inc. ...... 222,300 8,669,700 ------------ CASINOS & GAMBLING (0.8%) *Harrah's Entertainment, Inc. ........ 124,700 5,530,445 ------------ CHEMICALS (0.8%) OM Group, Inc. ....................... 81,800 5,071,600 ------------ COMMUNICATIONS TECHNOLOGY (1.2%) *Networks Associates, Inc. ........... 173,200 3,337,564 *UTStarcom, Inc. ..................... 225,600 4,550,352 ------------ 7,887,916 ------------ COMPUTER SERVICES SOFTWARE & SYSTEMS (4.9%) *Intuit, Inc. ........................ 425,300 21,145,916 *Mercury Interactive Corp. ........... 190,200 4,366,992 *QLogic Corp. ........................ 82,920 3,159,252 *Rational Software Corp. ............. 554,500 4,552,445 ------------ 33,224,605 ------------ COMPUTER TECHNOLOGY (1.2%) *Synopsys, Inc........................ 141,700 7,766,577 ------------ CONSUMER ELECTRONICS (1.7%) *Electronic Arts, Inc................. 174,700 11,538,935 ------------ COSMETICS (0.7%) Lauder, Estee Companies, Inc., The (Class A)........................... 141,600 4,984,320 ------------ DRUGS & PHARMACEUTICALS (4.0%) AmerisourceBergen Corp. .............. 65,600 4,985,600 *ANDRX Group.......................... 90,200 2,432,694 *Barr Laboratories, Inc. ............. 55,400 3,519,562 *Gilead Sciences, Inc. ............... 109,000 3,583,920 *MedImmune, Inc. ..................... 329,200 8,690,880 Teva Pharmaceutical Industries Ltd. ADR................................. 55,600 3,712,968 ------------ 26,925,624 ------------ EDUCATION SERVICES (1.1%) *Apollo Group, Inc. (Class A)......... 182,025 7,173,605 ------------
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SHARES VALUE ELECTRONICS: SEMICONDUCTORS (3.0%) *Atmel Corp. ......................... 809,100 $ 5,064,966 *Intersil Corp. (Class A)............. 83,900 1,793,782 *Microchip Technology, Inc. .......... 124,500 3,415,035 *Micron Technology, Inc. ............. 85,700 1,732,854 *National Semiconductor Corp. ........ 306,900 8,952,273 ------------ 20,958,910 ------------ FINANCIAL DATA PROCESSING SERVICES (0.8%) *DST Systems, Inc. ................... 35,900 1,640,989 *SunGard Data Systems, Inc. .......... 127,520 3,376,730 ------------ 5,017,719 ------------ FINANCIAL INFORMATION SERVICES (1.6%) Moody's Corp. ........................ 222,700 11,079,325 ------------ HEALTH CARE FACILITIES (8.4%) *DaVita, Inc. ........................ 140,800 3,351,040 HCA, Inc. ............................ 458,700 21,788,250 *HEALTHSOUTH Corp. ................... 1,217,700 15,574,383 *Laboratory Corporation of America Holdings............................ 342,840 15,650,646 ------------ 56,364,319 ------------ HEALTH CARE MANAGEMENT SERVICES (8.4%) *AdvancePCS (Class A)................. 123,300 2,951,802 Aetna, Inc. .......................... 88,500 4,245,345 *Caremark Rx, Inc. ................... 1,077,900 17,785,350 *Community Health Systems, Inc. ...... 130,080 3,486,144 UnitedHealth Group, Inc. ............. 40,900 3,744,395 *Universal Health Services, Inc. (Class B)........................... 80,100 3,924,900 *WellPoint Health Networks, Inc. ..... 263,700 20,518,497 ------------ 56,656,433 ------------ HEALTH CARE SERVICES (1.9%) *Express Scripts, Inc. ............... 168,800 8,458,568 McKesson Corp. ....................... 131,600 4,303,320 ------------ 12,761,888 ------------ IDENTIFICATION CONTROL (1.0%) Pall Corp. ........................... 337,200 6,996,900 ------------ INSURANCE: LIFE (1.1%) *Anthem, Inc. ........................ 110,400 7,421,088 ------------ INSURANCE: MULTI-LINE (0.8%) Stancorp Financial Group, Inc. ....... 90,800 5,039,400 ------------ INSURANCE: PROPERTY & CASUALTY (0.5%) Everest Re Group, Ltd. ............... 59,800 3,345,810 ------------
See Accompanying Notes to Financial Statements 49 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
COLUMBIA SPECIAL FUND (CONT.) JUNE 30, 2002 (UNAUDITED) SHARES VALUE ---------------------------------------------------------------------- MACHINERY: OIL WELL EQUIPMENT & SERVICES (3.1%) *Nabors Industries, Inc. ............. 180,800 $ 6,355,120 *National-Oilwell, Inc. .............. 106,600 2,243,930 *Noble Corp. ......................... 223,500 8,627,100 *Patterson-UTI Energy, Inc. .......... 115,500 3,260,565 ------------ 20,486,715 ------------ MEDICAL & DENTAL SUPPLIES (2.4%) Biomet, Inc. ......................... 384,800 10,435,776 *Boston Scientific Corp. ............. 196,300 5,755,516 ------------ 16,191,292 ------------ MISCELLANEOUS EQUIPMENT (0.9%) Grainger, W.W., Inc. ................. 119,960 6,009,996 ------------ MULTI-SECTOR COMPANIES (0.7%) Eaton Corp. .......................... 66,800 4,859,700 ------------ OIL: CRUDE PRODUCERS (1.0%) Burlington Resources, Inc. ........... 170,000 6,460,000 ------------ PRODUCTION TECHNOLOGY EQUIPMENT (3.1%) *ASML Holding NV...................... 241,000 3,643,920 *Novellus Systems, Inc. .............. 145,400 4,943,600 *Taiwan Semiconductor Manufacturing Company Ltd. ADR.................... 523,358 6,803,654 *United Microelectronics Corp. ADR.... 707,070 5,196,964 ------------ 20,588,138 ------------ PUBLISHING: NEWSPAPERS (1.0%) Knight Ridder, Inc. .................. 111,600 7,025,220 ------------ RADIO & TELEVISION BROADCASTERS (6.2%) *Cox Radio, Inc. (Class A)............ 340,400 8,203,640 *Hispanic Broadcasting Corp........... 427,700 11,162,970 *Radio One, Inc. (Class D)............ 348,000 5,174,760 *Univision Communications, Inc. (Class A).................................. 278,900 8,757,460 *Westwood One, Inc. .................. 248,500 8,304,870 ------------ 41,603,700 ------------ RAILROADS (0.9%) CSX Corp. ............................ 171,300 6,004,065 ------------ RESTAURANTS (4.1%) *Brinker International, Inc. ......... 435,190 13,817,282 *Outback Steakhouse, Inc. ............ 209,900 7,367,490 *Yum! Brands, Inc. ................... 217,800 6,370,650 ------------ 27,555,422 ------------
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SHARES OR PRINCIPAL AMOUNT VALUE RETAIL (6.9%) *Abercrombie & Fitch Co. (Class A).... 173,100 $ 4,175,172 Circuit City Group.................... 155,800 2,921,250 *Costco Wholesale Corp. .............. 192,000 7,415,040 *Dollar Tree Stores, Inc. ............ 220,240 8,679,658 Gap, Inc., The........................ 841,300 11,946,460 Limited Brands, Inc. ................. 193,620 4,124,106 Nordstrom, Inc. ...................... 51,500 1,166,475 Talbots, Inc., The.................... 175,000 6,125,000 ------------ 46,553,161 ------------ SERVICES: COMMERCIAL (4.3%) *ChoicePoint, Inc. ................... 244,040 11,096,499 *Hewitt Associates, Inc. (Class A).... 92,086 2,145,604 *Republic Services, Inc. ............. 225,560 4,301,429 *Robert Half International, Inc. ..... 304,000 7,083,200 *Weight Watchers International, Inc. ............................... 97,700 4,244,088 ------------ 28,870,820 ------------ SOAPS & HOUSEHOLD CHEMICALS (1.0%) Dial Corp., The....................... 345,330 6,913,507 ------------ TELECOMMUNICATION EQUIPMENT (0.4%) *Polycom, Inc. ....................... 249,900 2,996,301 ------------ TOYS (1.2%) Mattel, Inc. ......................... 393,690 8,271,427 ------------ Total Common Stocks (Cost $545,007,716)..................... 587,609,602 ------------ REPURCHASE AGREEMENTS (13.6%) J.P. Morgan Securities, Inc. 1.85% dated 06/28/2002, due 07/01/2002 in the amount of $56,234,614. Collateralized by U.S. Treasury Bills due 07/05/2002 to 11/29/2014 U.S. Treasury Strips due 02/15/2010 to 08/15/2028....................... $56,226,054 56,226,054 Merrill Lynch 1.80% dated 06/28/2002, due 07/01/2002 in the amount of $35,005,178. Collateralized by U.S. Treasury Strips due 08/15/2012 to 08/15/2017.......................... 35,000,000 35,000,000 ------------ Total Repurchase Agreements (Cost $91,226,054)...................... 91,226,054 ------------ TOTAL INVESTMENTS (100.8%) (Cost $636,233,770)..................... 678,835,656 OTHER ASSETS LESS LIABILITIES (-0.8%).... (5,223,238) ------------ NET ASSETS (100.0%)...................... $673,612,418 ============ * Non-income producing
See Accompanying Notes to Financial Statements 50 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
COLUMBIA SMALL CAP FUND JUNE 30, 2002 (UNAUDITED) SHARES VALUE ----------------------------------------------------------------------- COMMON STOCKS (93.4%) ADVERTISING AGENCIES (1.8%) *Lamar Advertising Co. ........... 309,212 $ 11,505,778 --------------- AIR TRANSPORT (0.2%) *Atlantic Coast Airlines Holdings, Inc. ........................... 53,219 1,154,852 SkyWest, Inc. .................... 5,100 119,289 --------------- 1,274,141 --------------- AUTO PARTS: ORIGINAL EQUIPMENT (1.8%) Autoliv, Inc. .................... 258,800 6,521,760 *Tower Automotive, Inc. .......... 336,900 4,699,755 --------------- 11,221,515 --------------- AUTO TRUCKS & PARTS (0.8%) *Gentex Corp. .................... 194,100 5,331,927 --------------- BANKS (0.5%) Greater Bay Bancorp............... 110,400 3,395,904 --------------- BIOTECH RESEARCH & PRODUCTS (3.0%) *Integra LifeSciences Holdings Corp. .......................... 369,475 8,036,081 *Neurocrine Biosciences, Inc. .... 200,455 5,743,036 *Transkaryotic Therapies, Inc. ... 52,318 1,886,064 *Trimeris, Inc. .................. 77,800 3,453,542 --------------- 19,118,723 --------------- CHEMICALS (1.5%) OM Group, Inc. ................... 74,600 4,625,200 *Wilson Greatbatch Technologies, Inc. ........................... 190,110 4,844,003 --------------- 9,469,203 --------------- COMMUNICATIONS & MEDIA (0.2%) *Entravision Communications Corp. (Class A)....................... 123,000 1,506,750 --------------- COMPUTER SERVICES SOFTWARE & SYSTEMS (6.4%) *Acxiom Corp. .................... 260,300 4,552,647 *Anteon International Corp. ...... 70,500 1,782,240 *Concurrent Computer Corp. ....... 35,200 163,680 *Documentum, Inc. ................ 225,231 2,702,772 *Electronics for Imaging, Inc. ... 78,220 1,244,480 *HPL Technologies, Inc. .......... 348,200 5,243,892 *Manhattan Associates, Inc. ...... 97,374 3,131,548 *Mentor Graphics Corp. ........... 219,650 3,123,423 *National Instruments Corp. ...... 84,260 2,743,506 *NetIQ Corp. ..................... 150,052 3,395,677 *Precise Software Solutions Ltd. ........................... 380,364 3,632,476 *Rational Software Corp. ......... 362,100 2,972,841
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SHARES VALUE *Retek, Inc. ..................... 200,701 $ 4,877,034 *SRA International, Inc. (Class A).............................. 10,100 272,498 *TriZetto Group, Inc. ............ 85,400 730,170 --------------- 40,568,884 --------------- COMPUTER TECHNOLOGY (0.1%) *Computer Network Technology Corp. .......................... 115,002 704,962 --------------- CONSTRUCTION (0.6%) Granite Construction, Inc. ....... 161,000 4,073,300 --------------- CONSUMER ELECTRONICS (1.9%) Harman International Industries, Inc. ........................... 126,500 6,230,125 *THQ, Inc. ....................... 191,775 5,718,730 --------------- 11,948,855 --------------- CONSUMER PRODUCTS (0.7%) *Oakley, Inc. .................... 255,600 4,473,000 --------------- DIVERSIFIED FINANCIAL SERVICES (1.4%) *Willis Group Holdings Ltd. ...... 271,149 8,923,514 --------------- DRUGS & PHARMACEUTICALS (3.9%) *Alkermes, Inc. .................. 266,161 4,261,238 *American Pharmaceutical Partners, Inc. ........................... 239,900 2,965,164 *First Horizon Pharmaceutical Corp. .......................... 369,114 7,636,969 *Guilford Pharmaceuticals, Inc. ........................... 158,965 1,198,596 *Medicis Pharmaceutical Corp. (Class A)....................... 78,330 3,349,391 *Pharmaceutical Resources, Inc. ........................... 192,871 5,357,956 --------------- 24,769,314 --------------- EDUCATION SERVICES (5.0%) *Career Education Corp. .......... 85,170 3,832,650 *Corinthian Colleges, Inc. ....... 140,800 4,771,712 *Education Management Corp. ...... 202,471 8,246,644 *ITT Educational Services, Inc. ........................... 195,996 4,272,713 *Sylvan Learning Systems, Inc. ... 521,401 10,396,736 --------------- 31,520,455 --------------- ELECTRONICS (1.3%) *Amphenol Corp. (Class A)......... 229,655 8,267,580 --------------- ELECTRONICS: EQUIPMENT & COMPONENTS (0.4%) *MKS Instruments, Inc. ........... 16,900 339,183 *Power-One, Inc. ................. 388,090 2,413,920 --------------- 2,753,103 --------------- ELECTRONICS: MEDICAL SYSTEMS (0.7%) *CTI Molecular Imaging, Inc. ..... 33,500 768,490 *TheraSense, Inc. ................ 186,988 3,448,059 --------------- 4,216,549 --------------- ELECTRONICS: SEMICONDUCTORS (0.2%) *Lattice Semiconductor Corp. ..... 180,046 1,573,602 ---------------
See Accompanying Notes to Financial Statements 51 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
COLUMBIA SMALL CAP FUND (CONT.) JUNE 30, 2002 (UNAUDITED) SHARES VALUE ----------------------------------------------------------------------- ENGINEERING & CONTRACT SERVICES (1.4%) *Jacobs Engineering Group, Inc. ........................... 128,908 $ 4,483,420 *URS Corp. ....................... 149,340 4,151,652 --------------- 8,635,072 --------------- FINANCIAL DATA PROCESSING SERVICES (1.2%) *Alliance Data Systems Corp. ..... 188,350 4,812,342 Global Payments, Inc. ............ 102,536 3,061,725 --------------- 7,874,067 --------------- FOODS (0.8%) *Chiquita Brands International, Inc. ........................... 271,500 4,862,565 --------------- FOREST PRODUCTS (0.6%) Louisiana-Pacific Corp. .......... 376,400 3,982,312 --------------- HEALTH CARE FACILITIES (2.3%) *DaVita, Inc. .................... 625,631 14,890,018 --------------- HEALTH CARE MANAGEMENT SERVICES (8.2%) *Caremark Rx, Inc. ............... 840,822 13,873,563 *Cerner Corp. .................... 105,193 5,031,381 *First Health Group Corp. ........ 496,956 13,934,646 *Mid Atlantic Medical Services, Inc. ........................... 284,000 8,903,400 *Trigon Healthcare, Inc. ......... 101,768 10,235,825 --------------- 51,978,815 --------------- HEALTH CARE SERVICES (1.8%) *Express Scripts, Inc. ........... 155,840 7,809,142 *Stericycle, Inc. ................ 101,312 3,587,458 --------------- 11,396,600 --------------- HOMEBUILDING (1.5%) D.R. Horton, Inc. ................ 298,968 7,782,137 Standard Pacific Corp. ........... 54,300 1,904,844 --------------- 9,686,981 --------------- IDENTIFICATION CONTROL (1.4%) *Advanced Energy Industries, Inc. ........................... 125,500 2,783,590 *Flowserve Corp. ................. 108,800 3,242,240 Roper Industries, Inc. ........... 84,800 3,163,040 --------------- 9,188,870 --------------- INSURANCE: LIFE (0.8%) Scottish Annuity & Life Holdings, Ltd. ........................... 268,700 5,126,796 --------------- INSURANCE: MULTI-LINE (0.2%) PartnerRe Ltd. ................... 30,078 1,472,318 ---------------
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SHARES VALUE INSURANCE: PROPERTY-CASUALTY (0.6%) IPC Holdings Ltd. ................ 111,910 $ 3,417,731 Odyssey Re Holdings Corp. ........ 19,600 340,844 --------------- 3,758,575 --------------- MACHINERY: CONSTRUCTION & HANDLING (0.5%) *Terex Corp. ..................... 146,600 3,297,034 --------------- MACHINERY: OIL WELL EQUIPMENT & SERVICES (2.6%) *Cal Dive International, Inc. .... 145,800 3,207,600 *Global Industries Ltd. .......... 239,838 1,676,468 *National-Oilwell, Inc. .......... 193,000 4,062,650 *Newpark Resources, Inc. ......... 236,300 1,736,805 *Oceaneering International, Inc. ........................... 46,000 1,219,000 *Varco International, Inc. ....... 250,000 4,385,000 --------------- 16,287,523 --------------- MANUFACTURED HOUSING (0.8%) Clayton Homes, Inc. .............. 322,294 5,092,245 --------------- MEDICAL & DENTAL SUPPLIES (4.7%) *American Medical Systems Holdings, Inc. ................. 367,648 7,375,019 *Kyphon, Inc. .................... 184,600 2,691,468 *Orthofix International NV ....... 84,700 2,977,205 *Schein, Henry, Inc. ............. 179,151 7,972,220 *Thoratec Corp. .................. 184,500 1,658,655 *Urologix, Inc. .................. 229,360 2,933,514 *Wright Medical Group, Inc. ...... 216,900 4,372,704 --------------- 29,980,785 --------------- MEDICAL SERVICES (1.0%) *AMN Healthcare Services, Inc. ... 178,100 6,235,281 --------------- METAL FABRICATING (0.2%) *Lone Star Technologies, Inc. .... 64,300 1,472,470 --------------- METALS & MINERALS MISCELLANEOUS (0.8%) Minerals Technologies, Inc. ...... 97,600 4,813,632 --------------- OFFSHORE DRILLING (0.5%) *Precision Drilling Corp. ........ 91,900 3,192,606 --------------- OIL: CRUDE PRODUCERS (1.7%) *Grey Wolf, Inc. ................. 509,800 2,069,788 Patina Oil & Gas Corp. ........... 125,625 3,444,637 XTO Energy, Inc. ................. 251,400 5,178,840 --------------- 10,693,265 --------------- PAPER (0.5%) Albany International Corp. ....... 127,700 3,436,407 --------------- PLASTICS (1.2%) Spartech Corp. ................... 277,200 7,548,156 ---------------
See Accompanying Notes to Financial Statements 52 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
SHARES VALUE ----------------------------------------------------------------------- PRODUCTION TECHNOLOGY EQUIPMENT (5.6%) *ASE Test Ltd. ................... 291,668 $ 2,829,180 *ASM International NV ............ 143,762 2,481,332 *Brooks-PRI Automation, Inc. ..... 87,861 2,245,727 *Credence Systems Corp. .......... 341,695 6,071,920 *Cymer, Inc. ..................... 86,700 3,037,968 *Electro Scientific Industries, Inc. ........................... 79,000 1,919,700 *FEI Co. ......................... 103,100 2,526,981 *Photon Dynamics, Inc. ........... 140,004 4,200,120 *Photronics, Inc. ................ 179,186 3,393,783 *Rudolph Technologies, Inc. ...... 115,861 2,888,415 *Ultratech Stepper, Inc. ......... 265,764 4,302,719 --------------- 35,897,845 --------------- RADIO & TELEVISION BROADCASTERS (3.4%) *Entercom Communications Corp. ... 251,100 11,525,490 *LIN TV Corp. (Class A) .......... 111,750 3,021,720 *Radio One, Inc. (Class D) ....... 458,902 6,823,873 --------------- 21,371,083 --------------- REAL ESTATE INVESTMENT TRUSTS (REITS) (1.3%) Health Care Property Investors, Inc. ........................... 75,542 3,240,752 Healthcare Realty Trust, Inc. .... 162,300 5,193,600 --------------- 8,434,352 --------------- RESTAURANTS (0.8%) *Outback Steakhouse, Inc. ........ 139,872 4,909,507 --------------- RETAIL (8.9%) *Abercrombie & Fitch Co. (Class A).............................. 164,052 3,956,934 *American Eagle Outfitters, Inc. ........................... 147,200 3,111,808 *Charlotte Russe Holding, Inc. ... 110,000 2,456,300 *Cost Plus, Inc. ................. 144,121 4,389,782 *GameStop Corp. .................. 195,300 4,099,347 *Linens 'n Things, Inc. .......... 40,000 1,312,400 *Lithia Motors, Inc. (Class A).... 93,000 2,503,560 *Michaels Stores, Inc. ........... 191,675 7,475,325 *O'Reilly Automotive, Inc. ....... 228,792 6,305,508 *Pacific Sunwear of California, Inc. ........................... 297,500 6,595,575 *Petco Animal Supplies, Inc. ..... 28,800 717,408 Talbots, Inc., The................ 140,599 4,920,965 *Zale Corp. ...................... 246,739 9,030,647 --------------- 56,875,559 --------------- SERVICES: COMMERCIAL (2.1%) *Corporate Executive Board Co., The............................. 223,260 7,646,655 *On Assignment, Inc. ............. 156,182 2,780,040 *Resources Connection, Inc. ...... 104,700 2,825,853 --------------- 13,252,548 --------------- SHOES (0.8%) *Reebok International Ltd. ....... 182,000 5,369,000 ---------------
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SHARES OR PRINCIPAL AMOUNT VALUE TRUCKERS (2.8%) *Hunt, J.B. Transport Services, Inc. ........................... 147,400 $ 4,351,248 *Swift Transportation Co., Inc. ........................... 176,400 4,110,120 USFreightways Corp. .............. 102,356 3,876,222 *Yellow Corp. .................... 175,080 5,672,592 --------------- 18,010,182 --------------- Total Common Stocks (Cost $567,963,042)................. 595,639,528 --------------- REPURCHASE AGREEMENT (5.4%) J.P. Morgan Securities, Inc. 1.85% dated 06/28/2002, due 07/01/2002 in the amount of $34,529,587. Collateralized by U.S. Treasury Bills due 07/05/2002 to 11/29/2014 U.S. Treasury Strips due 02/15/2010 to 08/15/2028 (Cost $34,524,331).................... $ 34,524,331 34,524,331 --------------- TOTAL INVESTMENTS (98.8%) (Cost $602,487,373)................. 630,163,859 OTHER ASSETS LESS LIABILITIES (1.2%).............................. 7,489,175 --------------- NET ASSETS (100.0%).................. $ 637,653,034 =============== * Non-income producing
COLUMBIA REAL ESTATE EQUITY FUND JUNE 30, 2002 (UNAUDITED) SHARES VALUE ----------------------------------------------------------------------- COMMON STOCKS (95.9%) FOREST PRODUCTS (1.4%) Weyerhaeuser Co. ................. 178,000 $ 11,365,300 --------------- HOTEL/MOTEL (0.9%) Starwood Hotels & Resorts Worldwide, Inc. ................ 219,600 7,222,644 --------------- PAPER (4.9%) Bowater, Inc. .................... 310,600 16,887,322 International Paper Co. .......... 542,100 23,624,718 --------------- 40,512,040 --------------- REAL ESTATE INVESTMENT TRUSTS (REITS) (88.7%) APARTMENTS (14.6%) Apartment Investment & Management Co. (Class A)...... 596,500 29,347,800 Archstone-Smith Trust........... 772,571 20,627,646 AvalonBay Communities, Inc. .... 499,600 23,331,320 Camden Property Trust........... 388,550 14,388,007
See Accompanying Notes to Financial Statements 53 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
COLUMBIA REAL ESTATE EQUITY FUND (CONT.) JUNE 30, 2002 (UNAUDITED) SHARES VALUE ----------------------------------------------------------------------- Equity Residential.............. 608,506 $ 17,494,547 United Dominion Realty Trust, Inc. ......................... 1,008,400 15,882,300 --------------- 121,071,620 --------------- COMMUNITY CENTERS (8.8%) Kimco Realty Corp. ............. 539,500 18,067,855 Pan Pacific Retail Properties, Inc. ......................... 287,800 9,693,104 Vornado Realty Trust............ 980,000 45,080,000 --------------- 72,840,959 --------------- INDUSTRIAL (20.2%) Alexandria Real Estate Equities, Inc. ......................... 507,400 25,009,746 AMB Property Corp. ............. 481,700 14,932,700 CenterPoint Properties Trust.... 172,400 10,025,060 iStar Financial, Inc. .......... 1,402,550 39,972,675 Liberty Property Trust.......... 243,500 8,522,500 ProLogis........................ 1,731,606 45,021,756 Public Storage, Inc. ........... 640,432 23,760,027 --------------- 167,244,464 --------------- LODGING (1.9%) Host Marriott Corp. ............ 1,361,600 15,386,080 --------------- OFFICE (24.3%) Boston Properties, Inc. ........ 574,800 22,963,260 CarrAmerica Realty Corp. ....... 946,100 29,187,185 Cousins Properties, Inc. ....... 1,564,950 38,748,162 Equity Office Properties Trust......................... 1,616,437 48,654,754 Prentiss Properties Trust....... 260,700 8,277,225 Reckson Associates Realty Corp. ........................ 952,600 23,719,740 Trizec Properties, Inc. ........ 1,754,300 29,577,498 --------------- 201,127,824 --------------- OTHER (2.9%) Plum Creek Timber Company, Inc. ......................... 789,318 24,153,131 --------------- REAL ESTATE (2.1%) St. Joe Co., The................ 587,200 17,627,744 --------------- SHOPPING MALLS (13.9%) CBL & Associates Properties, Inc. ......................... 401,400 16,256,700 Chelsea Property Group, Inc. ... 325,400 10,884,630 General Growth Properties, Inc. ......................... 908,700 46,343,700 Simon Property Group, Inc. ..... 1,127,856 41,561,493 --------------- 115,046,523 --------------- Total Common Stocks (Cost $673,313,552)................. 793,598,329 ---------------
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PRINCIPAL AMOUNT VALUE REPURCHASE AGREEMENTS (5.5%) J.P. Morgan Securities, Inc. 1.85% dated 06/28/2002, due 07/01/2002 in the amount of $42,720,452. Collateralized by U.S. Treasury Bills due 07/05/2002 to 11/29/2014 U.S. Treasury Strips due 02/15/2010 to 08/15/2028.... $ 42,713,949 $ 42,713,949 Merrill Lynch 1.80% dated 06/28/2002, due 07/01/2002 in the amount of $3,000,444. Collateralized by U.S. Treasury Strips due 08/15/2012 to 08/15/2017...................... 3,000,000 3,000,000 --------------- Total Repurchase Agreements (Cost $45,713,949).................. 45,713,949 --------------- TOTAL INVESTMENTS (101.4%) (Cost $719,027,501)................. 839,312,278 OTHER ASSETS LESS LIABILITIES (-1.4%)............................. (11,333,312) --------------- NET ASSETS (100%).................... $ 827,978,966 =============== * Non-income producing
COLUMBIA TECHNOLOGY FUND JUNE 30, 2002 (UNAUDITED) SHARES VALUE ----------------------------------------------------------------------- COMMON STOCKS (82.6%) AEROSPACE (1.1%) *Moog, Inc. (Class A)............. 2,500 $ 107,200 --------------- AUTO PARTS: ORIGINAL EQUIPMENT (0.7%) Autoliv, Inc. .................... 2,600 65,520 --------------- BIOTECH RESEARCH & PRODUCTS (0.5%) *Neurocrine Biosciences, Inc. .... 1,700 48,705 --------------- COMMUNICATIONS TECHNOLOGY (3.8%) *Advanced Fibre Communications, Inc. ........................... 8,950 148,033 *Brocade Communications Systems, Inc. ........................... 2,500 43,700 *UTStarcom, Inc. ................. 8,900 179,513 --------------- 371,246 --------------- COMPUTER SERVICES SOFTWARE & SYSTEMS (16.7%) *Actel Corp. ..................... 5,900 124,018 *Acxiom Corp. .................... 4,900 85,701 *Anteon International Corp. ...... 5,900 149,152 Autodesk, Inc. ................... 4,480 59,360
See Accompanying Notes to Financial Statements 54 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
SHARES VALUE ----------------------------------------------------------------------- *BMC Software, Inc. .............. 13,920 $ 231,072 *Documentum, Inc. ................ 3,150 37,800 *HPL Technologies, Inc. .......... 11,200 168,672 *Intuit, Inc. .................... 5,090 253,075 *Manhattan Associates, Inc. ...... 3,200 102,912 *Mentor Graphics Corp. ........... 5,000 71,100 *Mercury Interactive Corp. ....... 2,640 60,614 *Microsoft Corp. ................. 560 30,632 *Pinnacle Systems, Inc. .......... 10,400 114,286 *QLogic Corp. .................... 1,600 60,960 *Rational Software Corp. ......... 6,795 55,787 *VERITAS Software Corp. .......... 2,000 39,580 --------------- 1,644,721 --------------- COMPUTER TECHNOLOGY (1.8%) *Apple Computer, Inc. ............ 2,700 47,844 *Computer Network Technology Corp. .......................... 6,200 38,006 *NVIDIA Corp. .................... 2,260 38,827 *Sun Microsystems, Inc. .......... 9,800 49,098 --------------- 173,775 --------------- CONSUMER ELECTRONICS (4.5%) *Electronic Arts, Inc. ........... 4,940 326,287 *THQ, Inc. ....................... 3,790 113,018 --------------- 439,305 --------------- ELECTRONICS (5.4%) *Amphenol Corp. (Class A)......... 5,630 202,680 Samsung Electronics Co., Ltd. GDR (144A).......................... 1,000 137,300 *Semtech Corp. ................... 7,070 188,769 --------------- 528,749 --------------- ELECTRONICS: EQUIPMENT & COMPONENTS (1.1%) *Power-One, Inc. ................. 17,710 110,156 --------------- ELECTRONICS: SEMICONDUCTORS (16.1%) *Analog Devices, Inc. ............ 5,700 169,290 *Atmel Corp. ..................... 19,520 122,195 *Broadcom Corp. (Class A)......... 2,400 42,096 *Celestica, Inc. ................. 2,280 51,779 *Fairchild Semiconductor International, Inc. (Class A)... 4,800 116,640 *Integrated Circuit Systems, Inc............................. 12,040 243,088 *Intersil Corp. (Class A)......... 2,390 51,098 *Maxim Integrated Products, Inc. ........................... 3,000 114,990 *Microchip Technology, Inc. ...... 9,200 252,356 *Micron Technology, Inc. ......... 4,430 89,574
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SHARES VALUE *National Semiconductor Corp. .... 6,000 $ 175,020 *Silicon Laboratories, Inc. ...... 3,100 83,886 *Xilinx, Inc. .................... 3,100 69,533 --------------- 1,581,545 --------------- ELECTRONICS: TECHNOLOGY (2.7%) *Garmin Ltd. ..................... 5,000 110,250 Raytheon Co. ..................... 3,900 158,925 --------------- 269,175 --------------- FINANCIAL DATA PROCESSING SERVICES (3.2%) *Alliance Data Systems Corp. ..... 7,360 188,048 *DST Systems, Inc. ............... 2,700 123,417 --------------- 311,465 --------------- FINANCIAL INFORMATION SERVICES (1.2%) *S1 Corp. ........................ 16,700 123,413 --------------- MACHINERY: SPECIALTY (0.9%) Engineered Support Systems, Inc. ........................... 1,700 88,910 --------------- MEDICAL & DENTAL SUPPLIES (0.6%) *Kyphon, Inc. .................... 4,000 58,320 --------------- PRODUCTION TECHNOLOGY EQUIPMENT (15.3%) *ASE Test Ltd. ................... 4,730 45,881 *ASML Holding NV.................. 2,685 40,597 *Axcelis Technologies, Inc. ...... 8,950 102,746 *Credence Systems Corp. .......... 11,690 207,731 *Electro Scientific Industries, Inc. ........................... 11,940 290,142 *Entegris, Inc. .................. 15,240 222,504 *FEI Co. ......................... 2,300 56,373 *Photon Dynamics, Inc. ........... 1,400 42,000 *Taiwan Semiconductor Manufacturing Company Ltd. ADR.. 17,017 221,221 *United Microelectronics Corp. ADR ............................ 37,970 279,080 --------------- 1,508,275 --------------- RADIO & TELEVISION BROADCASTERS (2.0%) *Cumulus Media, Inc............... 4,500 62,010 *Entercom Communications Corp..... 1,100 50,490 *Radio One, Inc. (Class D)........ 2,600 38,662 *Westwood One, Inc. .............. 1,500 50,130 --------------- 201,292 --------------- RETAIL (0.5%) *Amazon.com, Inc. ................ 3,000 48,750 --------------- SAVINGS & LOAN (0.2%) *NetBank, Inc. ................... 1,900 22,135 ---------------
See Accompanying Notes to Financial Statements 55 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
COLUMBIA TECHNOLOGY FUND (CONT.) JUNE 30, 2002 (UNAUDITED) SHARES OR PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- SERVICES: COMMERCIAL (4.3%) *Corporate Executive Board Co., The............................. 4,500 $ 154,125 *eBay, Inc. ...................... 4,400 271,128 --------------- 425,253 --------------- Total Common Stocks (Cost $8,922,394)................... 8,127,910 --------------- REPURCHASE AGREEMENTS (17.3%) J.P. Morgan Securities, Inc. 1.85% dated 06/28/2002, due 07/01/2002 in the amount of $1,013,872. Collateralized by U.S. Treasury Bills due 07/05/2002 to 11/29/2014 U.S. Treasury Strips due 02/15/2010 to 08/15/2028................... $ 1,013,718 1,013,718 Merrill Lynch 1.80% dated 06/28/2002, due 07/01/2002 in the amount of $685,101. Collateralized by U. S. Treasury Strips due 08/15/2012 to 08/15/2017........ 685,000 685,000 --------------- Total Repurchase Agreements (Cost $1,698,718)................... 1,698,718 --------------- TOTAL INVESTMENTS (99.9%) (Cost $10,621,112).................. 9,826,628 OTHER ASSETS LESS LIABILITIES (0.1%).............................. 8,761 --------------- NET ASSETS (100.0%).................. $ 9,835,389 =============== * Non-income producing
COLUMBIA STRATEGIC VALUE FUND JUNE 30, 2002 (UNAUDITED) SHARES VALUE ----------------------------------------------------------------------- COMMON STOCKS (74.3%) AEROSPACE (0.1%) Saab AB (Class B)................. 30,000 $ 383,562 --------------- AGRICULTURE, FISH & RANCH (0.3%) Monsanto Co. ..................... 50,000 890,000 --------------- AIR TRANSPORT (0.5%) Airborne, Inc. ................... 100,000 1,920,000 --------------- ALUMINUM (0.4%) Alcan, Inc. ...................... 40,000 1,500,800 ---------------
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SHARES VALUE AUTO PARTS: ORIGINAL EQUIPMENT (0.7%) Autoliv, Inc. .................... 40,000 $ 1,008,000 Sauer-Danfoss, Inc. .............. 107,500 1,221,200 --------------- 2,229,200 --------------- AUTO TRUCKS & PARTS (0.9%) Modine Manufacturing Co. ......... 125,000 3,072,500 --------------- AUTOMOBILES (0.6%) General Motors Corp. ............. 20,000 1,069,000 Hyundai Motor Company Ltd. GDR.... 75,000 1,126,905 --------------- 2,195,905 --------------- BANKS (4.9%) Bank One Corp. ................... 40,000 1,539,200 *Columbia Banking System, Inc. ... 50,000 645,500 Glacier Bancorp, Inc. ............ 30,000 735,000 Huntington Bancshares, Inc. ...... 40,000 776,800 KeyCorp........................... 30,000 819,000 Kookmin Bank ADR.................. 40,000 1,966,000 Mitsubishi Tokyo Financial Group, Inc. ADR........................ 125,000 850,000 PNC Financial Services Group...... 47,500 2,483,300 Provident Financial Group, Inc. ........................... 62,500 1,813,125 U.S. Bancorp...................... 50,000 1,167,500 Wachovia Corp. ................... 100,000 3,818,000 --------------- 16,613,425 --------------- BANKS: NEW YORK CITY (0.6%) Bank of New York Company, Inc., The............................. 30,000 1,012,500 J.P. Morgan Chase & Co. .......... 30,000 1,017,600 --------------- 2,030,100 --------------- BEVERAGE: BREWERS & WINERIES (0.2%) Fomento Economico Mexicano SA de CV ADR.......................... 20,000 784,400 --------------- BUILDING MATERIALS (0.3%) Martin Marietta Materials, Inc. ........................... 30,000 1,170,000 --------------- CHEMICALS (2.2%) Calgon Carbon Corp. .............. 100,000 840,000 Dow Chemical Co. ................. 75,000 2,578,500 Dupont, E.I. de Nemours & Co. .... 30,000 1,332,000 *Hercules, Inc. .................. 100,000 1,192,000 Schulman, A., Inc. ............... 67,500 1,447,808 --------------- 7,390,308 --------------- COMMUNICATIONS & MEDIA (0.3%) *AOL Time Warner, Inc. ........... 50,000 735,500 *Gemstar-TV Guide International, Inc. ........................... 30,000 161,700 --------------- 897,200 ---------------
See Accompanying Notes to Financial Statements 56 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
SHARES VALUE ----------------------------------------------------------------------- COMMUNICATIONS TECHNOLOGY (0.8%) Corning, Inc. .................... 50,000 $ 177,500 Motorola, Inc. ................... 100,000 1,442,000 Symbol Technologies, Inc. ........ 75,000 637,500 *Tellabs, Inc. ................... 50,000 316,000 --------------- 2,573,000 --------------- COMPUTER SERVICES SOFTWARE & SYSTEMS (0.7%) Adobe Systems, Inc. .............. 30,000 855,000 *CompuCom Systems, Inc. .......... 57,000 221,160 *Hypercom Corp. .................. 100,000 770,000 *Quovadx, Inc. ................... 75,000 471,000 --------------- 2,317,160 --------------- COMPUTER TECHNOLOGY (0.7%) Hewlett-Packard Co. .............. 40,000 611,200 *SanDisk Corp. ................... 100,000 1,240,000 *Sun Microsystems, Inc. .......... 175,000 876,750 --------------- 2,727,950 --------------- CONSTRUCTION (0.9%) Chicago Bridge & Iron Co. NV...... 67,500 1,902,825 *Washington Group International, Inc. ........................... 50,000 1,100,000 --------------- 3,002,825 --------------- CONSUMER PRODUCTS (1.6%) International Flavors & Fragrances, Inc. ............... 45,000 1,462,050 Kimberly-Clark Corp. ............. 40,000 2,480,000 Kimberly-Clark de Mexico SA de CV ADR............................. 50,000 667,440 Orkla ASA......................... 40,000 772,920 --------------- 5,382,410 --------------- CONTAINERS: PAPER & PLASTIC (1.0%) Temple-Inland, Inc. .............. 57,500 3,326,950 --------------- COSMETICS (1.0%) Lauder, Estee Companies, Inc., The (Class A)....................... 97,500 3,432,000 --------------- DIVERSIFIED FINANCIAL SERVICES (0.8%) Citigroup, Inc. .................. 40,000 1,550,000 John Hancock Financial Services, Inc. ........................... 30,000 1,056,000 --------------- 2,606,000 --------------- DRUGS & PHARMACEUTICALS (3.0%) Abbott Laboratories............... 50,000 1,882,500 Bristol-Myers Squibb Co. ......... 50,000 1,285,000 Mylan Laboratories, Inc. ......... 62,500 1,959,375
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SHARES VALUE Novartis AG ADR................... 40,000 $ 1,753,200 Pharmacia Corp. .................. 37,500 1,404,375 Schering AG ADR................... 20,000 1,270,000 Schering-Plough Corp. ............ 35,000 861,000 --------------- 10,415,450 --------------- ELECTRONICS (1.2%) Methode Electronics, Inc. (Class A).............................. 150,000 1,915,500 Samsung Electronics Co., Ltd. GDR (144A).......................... 15,000 2,059,500 --------------- 3,975,000 --------------- ELECTRONICS: EQUIPMENT & COMPONENTS (0.9%) Cooper Industries, Ltd. .......... 25,000 982,500 Emerson Electric Co. ............. 40,000 2,140,400 --------------- 3,122,900 --------------- ELECTRONICS: HOUSEHOLD APPLIANCES (0.7%) Matsushita Electric Industrial Co., Ltd. ADR................... 125,000 1,728,750 Whirlpool Corp. .................. 10,000 653,600 --------------- 2,382,350 --------------- ELECTRONICS: SEMICONDUCTORS (1.3%) *Atmel Corp. ..................... 125,000 782,500 *Flextronics International Ltd. ........................... 50,000 356,500 *Micron Technology, Inc. ......... 75,000 1,516,500 Texas Instruments, Inc. .......... 75,000 1,777,500 --------------- 4,433,000 --------------- ELECTRONICS: TECHNOLOGY (0.5%) Raytheon Co. ..................... 40,000 1,630,000 --------------- ENGINEERING & CONTRACT SERVICES (0.9%) Fluor Corp........................ 50,000 1,947,500 *URS Corp......................... 37,000 1,028,600 --------------- 2,976,100 --------------- ENTERTAINMENT (0.3%) Disney, Walt Co., The............. 50,000 945,000 --------------- FERTILIZERS (0.1%) IMC Global, Inc. ................. 40,000 500,000 --------------- FOODS (2.4%) *Chiquita Brands International, Inc. ........................... 125,000 2,238,750 *Hain Celestial Group, Inc. ...... 20,000 370,000 Heinz, H.J. Co. .................. 40,000 1,644,000 Sara Lee Corp. ................... 50,000 1,032,000 Tyson Foods, Inc. (Class A)....... 30,000 465,300 Unilever NV....................... 40,000 2,592,000 --------------- 8,342,050 ---------------
See Accompanying Notes to Financial Statements 57 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
COLUMBIA STRATEGIC VALUE FUND (CONT.) JUNE 30, 2002 (UNAUDITED) SHARES VALUE ----------------------------------------------------------------------- FOREST PRODUCTS (0.4%) Longview Fibre Co. ............... 50,000 $ 471,000 Louisiana-Pacific Corp. .......... 75,000 793,500 --------------- 1,264,500 --------------- GOLD (0.3%) Newmont Mining Corp. ............. 40,000 1,053,200 --------------- HEALTH CARE MANAGEMENT SERVICES (0.1%) *WebMD Corp. ..................... 75,000 422,250 --------------- HOTEL/MOTEL (0.4%) Hilton Hotels Corp. .............. 100,000 1,390,000 --------------- HOUSEHOLD FURNISHINGS (1.2%) Ekornes ASA....................... 152,000 1,914,166 Newell Rubbermaid, Inc. .......... 62,500 2,191,250 --------------- 4,105,416 --------------- IDENTIFICATION CONTROL (0.3%) Parker Hannifin Corp. ............ 20,000 955,800 --------------- INSURANCE: LIFE (2.2%) *Anthem, Inc. .................... 37,500 2,520,750 *Principal Financial Group, Inc. ........................... 87,500 2,712,500 *Prudential Financial, Inc. ...... 67,500 2,251,800 --------------- 7,485,050 --------------- INSURANCE: MULTI-LINE (2.7%) American International Group, Inc. ........................... 50,000 3,411,500 *Millea Holdings, Inc. ADR........ 40,000 1,630,000 SAFECO Corp. ..................... 50,000 1,544,500 St. Paul Companies, Inc., The..... 30,000 1,167,600 *UICI............................. 75,000 1,512,000 --------------- 9,265,600 --------------- INVESTMENT MANAGEMENT COMPANIES (0.6%) Japan Smaller Capitalization Fund, Inc. ........................... 225,000 1,797,750 Tracker Fund of Hong Kong......... 300,000 411,540 --------------- 2,209,290 --------------- JEWELRY WATCHES & GEMSTONES (0.4%) Friedman's, Inc. (Class A)........ 100,000 1,299,900 --------------- MACHINERY: AGRICULTURAL (0.1%) CNH Global NV..................... 125,000 503,750 --------------- MACHINERY: CONSTRUCTION & HANDLING (1.8%) Caterpillar, Inc. ................ 87,500 4,283,125 Stewart & Stevenson Services, Inc. ........................... 75,000 1,330,500 *Terex Corp. ..................... 30,000 674,700 --------------- 6,288,325 ---------------
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SHARES VALUE MACHINERY: INDUSTRIAL/SPECIALTY (0.7%) *ABB Ltd. ADR..................... 75,000 $ 675,000 Hitachi Ltd. ADR.................. 25,000 1,604,250 --------------- 2,279,250 --------------- MACHINERY: OIL WELL EQUIPMENT & SERVICES (3.4%) *Core Laboratories NV ............ 60,000 721,200 *FMC Technologies, Inc. .......... 75,000 1,542,750 Helmerich & Payne, Inc. .......... 50,000 1,786,000 *Newpark Resources, Inc. ......... 175,000 1,286,250 Rowan Companies, Inc. ............ 100,000 2,145,000 Schlumberger Ltd. ................ 40,000 1,860,000 *Universal Compression Holdings, Inc. ........................... 100,000 2,399,000 --------------- 11,740,200 --------------- MACHINERY: SPECIALTY (0.6%) Constellation Energy Group, Inc. ........................... 25,000 733,500 JLG Industries, Inc. ............. 50,000 701,500 *Joy Global, Inc. ................ 40,000 709,600 --------------- 2,144,600 --------------- MEDICAL & DENTAL SUPPLIES (1.6%) Bausch & Lomb, Inc. .............. 75,000 2,538,750 Becton Dickinson & Co. ........... 40,000 1,378,000 *Boston Scientific Corp. ......... 50,000 1,466,000 --------------- 5,382,750 --------------- METAL FABRICATING (0.8%) Intermet Corp. ................... 50,000 537,000 *Stelco, Inc. (Class A)........... 175,000 602,936 Timken Co., The................... 75,000 1,674,750 --------------- 2,814,686 --------------- METALS & MINERALS MISCELLANEOUS (0.2%) *Stillwater Mining Co. ........... 40,000 635,200 --------------- MISCELLANEOUS MATERIALS & PROCESSING (0.3%) Cameco Corp. ..................... 40,000 1,026,000 --------------- MULTI-SECTOR COMPANIES (2.5%) 3M Co. ........................... 32,500 3,997,500 Eaton Corp. ...................... 20,000 1,455,000 Honeywell International, Inc. .... 45,000 1,585,350 *SPX Corp. ....................... 12,500 1,468,750 --------------- 8,506,600 --------------- OFFSHORE DRILLING (0.8%) *Precision Drilling Corp. ........ 65,000 2,258,100 Saipem S.p.A. .................... 75,000 539,243 --------------- 2,797,343 ---------------
See Accompanying Notes to Financial Statements 58 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
SHARES VALUE ----------------------------------------------------------------------- OIL: CRUDE PRODUCERS (1.3%) *Chesapeake Energy Corp. ......... 100,000 $ 720,000 *EEX Corp. ....................... 200,000 400,000 *Encore Acquisition Co. .......... 100,000 1,725,000 *Forest Oil Corp. ................ 40,000 1,132,400 *Statoil ASA ADR ................. 60,000 529,200 --------------- 4,506,600 --------------- OIL: INTEGRATED DOMESTIC (0.3%) Unocal Corp. ..................... 30,000 1,108,200 --------------- OIL: INTEGRATED INTERNATIONAL (0.8%) Conoco, Inc. ..................... 30,000 834,000 Encana Corp. ..................... 25,000 765,000 Petroleo Brasileiro SA ADR - Petrobras....................... 57,500 1,084,450 --------------- 2,683,450 --------------- PAINTS & COATINGS (0.4%) Fuller, H.B. Co. ................. 50,000 1,464,500 --------------- PAPER (1.8%) Abitibi-Consolidated, Inc. ....... 175,000 1,615,250 *Buckeye Technologies, Inc. ...... 125,000 1,250,000 International Paper Co. .......... 30,000 1,307,400 MeadWestvaco Corp. ............... 40,000 1,342,400 Sappi Ltd. ADR.................... 50,000 700,000 --------------- 6,215,050 --------------- PHOTOGRAPHY (0.3%) Eastman Kodak Co. ................ 37,500 1,093,875 --------------- POLLUTION CONTROL & ENVIRONMENTAL SERVICES (0.2%) *Ionics, Inc. .................... 30,000 727,500 --------------- PRODUCTION TECHNOLOGY EQUIPMENT (1.6%) *Agilent Technologies, Inc. ...... 40,000 955,200 *Axcelis Technologies, Inc. ...... 75,000 861,000 *FEI Co. ......................... 100,000 2,451,000 Millipore Corp. .................. 40,000 1,279,200 --------------- 5,546,400 --------------- PUBLISHING: MISCELLANEOUS (0.6%) Donnelley, R.R. & Sons Co. ....... 30,000 826,500 Nelson, Thomas, Inc. ............. 30,000 316,800 Reader's Digest Association, Inc. (Class A)....................... 50,000 936,500 --------------- 2,079,800 --------------- PUBLISHING: NEWSPAPERS (0.3%) Belo Corp. (Class A).............. 44,000 994,840 ---------------
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SHARES VALUE RADIO & TELEVISION BROADCASTERS (0.5%) *Emmis Communications Corp. (Class A).............................. 50,000 $ 1,059,500 *Sinclair Broadcast Group, Inc. (Class A)....................... 40,000 577,560 --------------- 1,637,060 --------------- RAILROADS (0.7%) Norfolk Southern Corp. ........... 100,000 2,338,000 --------------- REAL ESTATE INVESTMENT TRUSTS (REITS) (1.3%) Crescent Real Estate Equities Co. ............................ 75,000 1,402,500 *La Quinta Corp. ................. 150,000 1,068,000 ProLogis.......................... 75,000 1,950,000 --------------- 4,420,500 --------------- RECREATIONAL VEHICLES & BOATS (0.2%) Fleetwood Enterprises, Inc. ...... 75,000 652,500 --------------- RESTAURANTS (1.0%) CBRL Group, Inc. ................. 20,000 610,400 McDonald's Corp. ................. 100,000 2,845,000 --------------- 3,455,400 --------------- RETAIL (4.0%) *American Eagle Outfitters, Inc. ........................... 75,000 1,585,500 *Borders Group, Inc. ............. 75,000 1,380,000 Circuit City Group................ 100,000 1,875,000 Dillard's, Inc. (Class A)......... 100,000 2,629,000 Dollar General Corp. ............. 75,000 1,427,250 *Galyan's Trading Co. ............ 20,000 445,200 Gap, Inc., The.................... 125,000 1,775,000 Stockmann Oyj Abp (Class B)....... 50,000 627,140 Talbots, Inc., The................ 40,000 1,400,000 *United Natural Foods, Inc. ...... 30,000 585,000 --------------- 13,729,090 --------------- SAVINGS & LOAN (0.2%) *Bay View Capital Corp. .......... 100,000 641,000 --------------- SECURITY BROKERAGE & SERVICES (0.4%) Bear Stearns Companies, Inc. ..... 20,000 1,221,000 --------------- SERVICES: COMMERCIAL (1.0%) *Cendant Corp. ................... 100,000 1,588,000 Central Parking Corp. ............ 40,000 917,600 *Tetra Tech, Inc. ................ 75,000 1,102,500 --------------- 3,608,100 --------------- SHIPPING (1.0%) Alexander & Baldwin, Inc. ........ 40,000 1,021,200 Finnlines Oyj..................... 69,700 1,817,309 *Stelmar Shipping Ltd. ........... 50,000 742,000 --------------- 3,580,509 ---------------
See Accompanying Notes to Financial Statements 59 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
COLUMBIA STRATEGIC VALUE FUND (CONT.) JUNE 30, 2002 (UNAUDITED) SHARES OR PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- STEEL (0.4%) *Oregon Steel Mills, Inc. ........ 87,500 $ 525,000 *Steel Dynamics, Inc. ............ 50,000 823,500 --------------- 1,348,500 --------------- TELECOMMUNICATION EQUIPMENT (0.1%) *Andrew Corp. .................... 30,000 429,900 --------------- TIRES & RUBBER (1.0%) Cooper Tire & Rubber Co. ......... 50,000 1,027,500 Nokian Renkaat Oyj................ 69,000 2,316,972 --------------- 3,344,472 --------------- TOBACCO (0.4%) Philip Morris Companies, Inc. .... 30,000 1,310,400 --------------- TRUCKERS (0.2%) *Consolidated Freightways Corp. .......................... 175,000 572,250 --------------- UTILITIES: ELECTRICAL (0.8%) IDACORP, Inc. .................... 20,000 550,200 NiSource, Inc. ................... 60,000 1,309,800 Xcel Energy, Inc. ................ 50,000 838,500 --------------- 2,698,500 --------------- UTILITIES: GAS PIPELINE (0.2%) El Paso Corp. .................... 42,300 871,803 --------------- UTILITIES: TELECOMMUNICATIONS (1.1%) +AT&T Corp. ...................... 400,000 1,540,000 Hellenic Telecommunications Or- ganization SA ADR............... 50,000 390,500 Mobile Telesystems OJSC ADR....... 20,000 605,800 PT. Telekomunikasi Indonesia, Tbk. ADR............................. 150,000 1,320,000 --------------- 3,856,300 --------------- Total Common Stocks (Cost $242,889,941)................. 254,872,754 --------------- PREFERRED STOCK (0.5%) COMMUNICATIONS & MEDIA News Corporation Ltd., The ADR (Cost $1,939,413)............... 85,000 1,678,750 --------------- REPURCHASE AGREEMENTS (25.0%) J.P. Morgan Securities, Inc. 1.85% Dated 06/28/2002, due 07/01/2002 in the amount of $35,927,095. Collateralized by U.S. Treasury Bills due 07/05/2002 to 11/29/2014 U.S. Treasury Strips due 02/15/2010 to 08/15/2028................... $ 35,921,626 35,921,626
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PRINCIPAL AMOUNT VALUE ++Merrill Lynch 1.80% dated 06/28/2002, due 07/01/2002 in the amount of $50,057,405. Collateralized by U.S. Treasury Strips due 08/15/2012 to 08/15/2017........ $ 50,050,000 $ 50,050,000 --------------- Total Repurchase Agreements (Cost $85,971,626)........................ 85,971,626 --------------- TOTAL INVESTMENTS (99.8%) (Cost $330,800,980)....................... 342,523,130 OTHER ASSETS LESS LIABILITIES (0.2%).............................. 554,737 --------------- NET ASSETS (100.0%).................. $ 343,077,867 ===============
* Non-income producing + This 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, 2002 (UNAUDITED) SHARES VALUE ----------------------------------------------------------------------- COMMON STOCKS (57.6%) ADVERTISING AGENCIES (0.4%) Interpublic Group of Companies, Inc., The....................... 122,300 $ 3,028,148 --------------- AEROSPACE (0.7%) United Technologies Corp. ........ 84,600 5,744,340 --------------- AUTO PARTS: ORIGINAL EQUIPMENT (0.4%) Magna International, Inc. (Class A).............................. 52,300 3,600,855 --------------- AUTOMOBILES (0.3%) General Motors Corp. ............. 51,600 2,758,020 --------------- BANKS (2.3%) Bank of America Corp. ............ 155,310 10,927,612 Bank One Corp. ................... 196,550 7,563,244 --------------- 18,490,856 --------------- BANKS: NEW YORK CITY (1.1%) J.P. Morgan Chase & Co. .......... 261,740 8,878,221 --------------- BEVERAGE: SOFT DRINKS (0.3%) Pepsi Bottling Group, Inc. ....... 70,400 2,168,320 --------------- BIOTECH RESEARCH & PRODUCTS (1.4%) *Amgen, Inc. ..................... 63,200 2,646,816 Baxter International, Inc. ....... 195,000 8,665,800 --------------- 11,312,616 ---------------
See Accompanying Notes to Financial Statements 60 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
SHARES VALUE ----------------------------------------------------------------------- CABLE TELEVISION SERVICES (0.7%) *Liberty Media Corp. (Class A).... 586,028 $ 5,860,280 --------------- CHEMICALS (1.3%) DuPont, E.I. de Nemours & Co. .... 121,000 5,372,400 Praxair, Inc. .................... 88,400 5,036,148 --------------- 10,408,548 --------------- COMMUNICATIONS & MEDIA (0.4%) *AOL Time Warner, Inc. ........... 212,087 3,119,800 --------------- COMMUNICATIONS TECHNOLOGY (0.9%) *Cisco Systems, Inc. ............. 303,800 4,238,010 Motorola, Inc. ................... 191,800 2,765,756 --------------- 7,003,766 --------------- COMPUTER SERVICES SOFTWARE & SYSTEMS (2.1%) Adobe Systems, Inc. .............. 52,075 1,484,138 *Intuit, Inc. .................... 37,025 1,840,883 *Microsoft Corp. ................. 206,800 11,311,960 *Oracle Corp. .................... 223,900 2,120,333 --------------- 16,757,314 --------------- COMPUTER TECHNOLOGY (1.0%) *Apple Computer, Inc. ............ 227,750 4,035,730 Hewlett-Packard Co. .............. 197,900 3,023,912 *Sun Microsystems, Inc. .......... 258,100 1,293,081 --------------- 8,352,723 --------------- CONSUMER PRODUCTS (1.0%) Alberto-Culver Co. (Class B)...... 23,800 1,137,640 Gillette Co. ..................... 197,100 6,675,777 --------------- 7,813,417 --------------- COSMETICS (0.3%) Lauder, Estee Companies, Inc., The (Class A)....................... 65,900 2,319,680 --------------- DIVERSIFIED FINANCIAL SERVICES (4.3%) American Express Co. ............. 267,150 9,702,888 Citigroup, Inc. .................. 465,993 18,057,229 Marsh & McLennan Companies, Inc. ........................... 35,800 3,458,280 Merrill Lynch & Co., Inc. ........ 60,850 2,464,425 Morgan Stanley.................... 34,800 1,499,184 --------------- 35,182,006 --------------- DRUGS & PHARMACEUTICALS (6.1%) Abbott Laboratories............... 119,750 4,508,587 AmerisourceBergen Corp. .......... 66,500 5,054,000 Bristol-Myers Squibb Co. ......... 176,369 4,532,683 *MedImmune, Inc. ................. 63,000 1,663,200 Pfizer, Inc. ..................... 509,350 17,827,250
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SHARES VALUE Pharmacia Corp. .................. 283,500 $ 10,617,075 Teva Pharmaceutical Industries Ltd. ADR........................ 76,125 5,083,628 --------------- 49,286,423 --------------- ELECTRONICS: EQUIPMENT & COMPONENTS (0.4%) Koninklijke Philips Electronics NV.............................. 109,600 3,024,960 --------------- ELECTRONICS: SEMICONDUCTORS (1.1%) *Atmel Corp. ..................... 203,200 1,272,032 Intel Corp. ...................... 44,050 804,794 *Microchip Technology, Inc. ...... 32,900 902,447 *Micron Technology, Inc. ......... 49,200 994,824 *National Semiconductor Corp. .... 171,150 4,992,445 --------------- 8,966,542 --------------- ELECTRONICS: TECHNOLOGY (0.7%) Raytheon Co. ..................... 133,800 5,452,350 --------------- ENTERTAINMENT (0.7%) *Viacom, Inc. (Class B)........... 123,700 5,488,569 --------------- FINANCE COMPANIES (0.2%) Capital One Financial Corp. ...... 32,500 1,984,125 --------------- FINANCE: SMALL LOAN (0.4%) SLM Corp. ........................ 36,700 3,556,230 --------------- FINANCIAL DATA PROCESSING SERVICES (0.8%) Automatic Data Processing, Inc. ........................... 25,550 1,112,702 First Data Corp. ................. 142,600 5,370,316 --------------- 6,483,018 --------------- FINANCIAL MISCELLANEOUS (0.8%) Freddie Mac....................... 42,650 2,610,180 MBNA Corp. ....................... 124,900 4,130,443 --------------- 6,740,623 --------------- FOODS (0.2%) Sara Lee Corp. ................... 93,700 1,933,968 --------------- FOREST PRODUCTS (0.3%) Weyerhaeuser Co. ................. 38,800 2,477,380 --------------- HEALTH CARE FACILITIES (1.1%) HCA, Inc. ........................ 47,600 2,261,000 *HEALTHSOUTH Corp. ............... 145,600 1,862,224 *Laboratory Corporation of America Holdings........................ 104,600 4,774,990 --------------- 8,898,214 --------------- HEALTH CARE MANAGEMENT SERVICES (0.2%) Aetna, Inc. ...................... 31,300 1,501,461 ---------------
See Accompanying Notes to Financial Statements 61 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
COLUMBIA BALANCED FUND (CONT.) JUNE 30, 2002 (UNAUDITED) SHARES VALUE ----------------------------------------------------------------------- INSURANCE: LIFE (1.2%) *Anthem, Inc. .................... 47,500 $ 3,192,950 *Principal Financial Group, Inc. ........................... 119,900 3,716,900 *Prudential Financial, Inc. ...... 71,600 2,388,576 --------------- 9,298,426 --------------- INSURANCE: MULTI-LINE (1.3%) American International Group, Inc. ........................... 149,762 10,218,261 --------------- INSURANCE: PROPERTY-CASUALTY (0.8%) *Berkshire Hathaway, Inc. (Class A).............................. 45 3,006,000 Chubb Corp. ...................... 44,050 3,118,740 --------------- 6,124,740 --------------- LEISURE TIME (0.4%) Carnival Corp. ................... 126,800 3,511,092 --------------- MACHINERY: OIL WELL EQUIPMENT & SERVICES (0.8%) GlobalSantaFe Corp. .............. 84,150 2,301,503 *Noble Corp. ..................... 66,500 2,566,900 Rowan Companies, Inc. ............ 72,600 1,557,270 --------------- 6,425,673 --------------- MACHINERY: SPECIALTY (0.2%) Constellation Energy Group, Inc. ........................... 46,800 1,373,112 --------------- MEDICAL & DENTAL SUPPLIES (0.6%) Beckman Coulter, Inc. ............ 91,250 4,553,375 --------------- MISCELLANEOUS EQUIPMENT (0.3%) Grainger, W.W., Inc. ............. 48,550 2,432,355 --------------- MULTI-SECTOR COMPANIES (4.7%) 3M Co. ........................... 69,350 8,530,050 Eaton Corp. ...................... 16,700 1,214,925 General Electric Co. ............. 388,900 11,297,545 Honeywell International, Inc. .... 158,400 5,580,432 Illinois Tool Works, Inc. ........ 61,400 4,231,688 ITT Industries, Inc. ............. 27,900 1,969,740 *SPX Corp. ....................... 38,850 4,564,875 Tyco International Ltd. .......... 29,002 391,817 --------------- 37,781,072 --------------- OIL: CRUDE PRODUCERS (1.3%) Apache Corp. ..................... 64,780 3,723,554 Devon Energy Corp. ............... 71,300 3,513,664 EOG Resources, Inc. .............. 83,100 3,299,070 --------------- 10,536,288 --------------- OIL: INTEGRATED DOMESTIC (0.2%) Phillips Petroleum Co. ........... 33,350 1,963,648 ---------------
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SHARES VALUE OIL: INTEGRATED INTERNATIONAL (2.1%) ChevronTexaco Corp. .............. 22,050 $ 1,951,425 Exxon Mobil Corp. ................ 274,159 11,218,586 Royal Dutch Petroleum Co. ........ 75,200 4,156,304 --------------- 17,326,315 --------------- PAPER (0.6%) Bowater, Inc. .................... 33,600 1,826,832 International Paper Co. .......... 64,000 2,789,120 --------------- 4,615,952 --------------- PRODUCTION TECHNOLOGY EQUIPMENT (1.2%) *Applied Materials, Inc. ......... 125,400 2,385,108 *Taiwan Semiconductor Manufacturing Company Ltd. ADR.. 381,975 4,965,675 *United Microelectronics Corp. ADR............................. 338,000 2,484,300 --------------- 9,835,083 --------------- RADIO & TELEVISION BROADCASTERS (0.3%) *Clear Channel Communications, Inc. ........................... 70,600 2,260,612 --------------- RAILROADS (0.3%) Union Pacific Corp. .............. 43,650 2,762,172 --------------- RESTAURANTS (0.8%) McDonald's Corp. ................. 217,700 6,193,565 --------------- RETAIL (4.9%) Circuit City Group................ 276,800 5,190,000 Gap, Inc., The.................... 502,400 7,134,080 *Kohl's Corp. .................... 83,150 5,827,152 Nordstrom, Inc. .................. 126,600 2,867,490 Sears, Roebuck & Co. ............. 79,700 4,327,710 Wal-Mart Stores, Inc. ............ 259,850 14,294,349 --------------- 39,640,781 --------------- SECURITY BROKERAGE & SERVICES (0.4%) Franklin Resources, Inc. ......... 70,800 3,018,912 --------------- SERVICES: COMMERCIAL (1.2%) *Accenture Ltd. (Class A)......... 180,000 3,420,000 Waste Management, Inc. ........... 252,700 6,582,835 --------------- 10,002,835 --------------- TOBACCO (0.5%) Carolina Group.................... 52,850 1,429,592 UST, Inc. ........................ 86,800 2,951,200 --------------- 4,380,792 --------------- TRANSPORTATION MISCELLANEOUS (0.4%) United Parcel Service, Inc. (Class B).............................. 56,000 3,458,000 --------------- UTILITIES: CABLE TELEVISION & RADIO (0.5%) *Comcast Corp. (Class A Special)........................ 183,700 4,379,408 ---------------
See Accompanying Notes to Financial Statements 62 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
SHARES OR PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- UTILITIES: TELECOMMUNICATIONS (0.7%) AT&T Corp. ....................... 119,500 $ 1,278,650 SBC Communications, Inc. ......... 141,950 4,329,475 --------------- 5,608,125 --------------- Total Common Stocks (Cost $456,190,867)................. 466,293,367 --------------- PREFERRED STOCK (0.7%) COMMUNICATIONS & MEDIA News Corporation Ltd., The ADR (Cost $6,341,188)............... 275,275 5,436,681 --------------- BONDS (40.8%) U.S. GOVERNMENT SECURITIES (16.3%) U.S. TREASURY BILLS (0.8%) 1.73% 08/01/2002.................. $ 6,700,000 6,690,713 --------------- U.S. TREASURY NOTES & BONDS (3.1%) U.S. Treasury Bonds 8.875% 08/15/2017............... 6,420,000 8,661,395 6.25% 08/15/2023................ 7,835,000 8,397,083 U.S. Treasury Inflation Index Bonds 3.375% 01/15/2007............... 7,829,016 8,145,849 --------------- 25,204,327 --------------- U.S. AGENCY BONDS (1.8%) Federal Home Loan Bank 5.375% 01/05/2004............... 8,475,000 8,812,220 Federal National Mortgage Association 7.125% 01/15/2030............... 5,385,000 6,030,177 --------------- 14,842,397 --------------- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) (4.8%) 6.50% 06/15/2031 - 01/15/2032..... 12,692,813 12,979,391 7.00% 02/15/2028 - 05/15/2032..... 24,684,758 25,689,501 --------------- 38,668,892 --------------- FEDERAL HOME LOAN MORTGAGE CORP. (FHLMC) (0.8%) 6.50% 09/01/2031 - 05/01/2032..... 5,900,564 6,029,810 --------------- FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) (2.0%) 6.00% 09/01/2016 - 06/01/2017..... 6,675,302 6,818,400 +6.15% 06/25/2032................. 1,807,928 1,846,685 7.00% 07/01/2031 - 02/01/2032..... 7,454,484 7,730,971 --------------- 16,396,056 --------------- FEDERAL HOUSING ADMINISTRATION (FHA) (0.2%) FHA Insured Project Pool #53-43077 9.125% 07/25/2033............... 1,564,319 1,597,405 --------------- AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS (2.8%) FNMA Gtd. Remic Pass Thru Ctf. Remic Tr. 1997-68 Cl. PJ 7.00% 10/18/2027................ 3,000,000 3,029,235
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PRINCIPAL AMOUNT VALUE Remic Tr. 2002-8 Cl. PD 6.50% 07/25/2030................ $ 3,480,000 $ 3,540,298 Remic Tr. 2001-56 Cl. KD 6.50% 07/25/2030................ 2,260,000 2,336,680 Remic Tr. 2002-27 Cl. OG 6.50% 12/25/2030................ 1,570,000 1,613,575 Remic Tr. 2001-55 Cl. PC 6.50% 10/25/2031................ 5,090,000 5,153,934 FHLMC Multiclass Mtg. Partn. Ctfs. Gtd. Series 2235 Cl. VN 7.00% 06/15/2014................ 3,980,000 4,244,786 Gtd. Series 2065 Cl. PB 6.25% 01/15/2024................ 1,083,000 1,126,656 Gtd. Series 2462 Cl. JE 6.50% 11/15/2030................ 1,610,000 1,659,749 --------------- 22,704,913 --------------- Total U.S. Government Securities (Cost $128,717,434)................. 132,134,513 --------------- CORPORATE NOTES & BONDS (16.1%) INDUSTRIAL (8.2%) Alcan, Inc. 7.25% 03/15/2031................ 1,135,000 1,208,662 Alcoa, Inc., Series B 6.50% 06/15/2018................ 1,100,000 1,096,172 Allied Waste North America, Inc. Series B 10.00% 08/01/2009............... 1,000,000 982,500 American Home Products Corp. 6.25% 03/15/2006................ 1,670,000 1,782,591 Anadarko Finance Co., Series B 7.50% 05/01/2031................ 2,000,000 2,129,380 Ball Corp. 7.75% 08/01/2006................ 850,000 878,687 Burlington Northern Sante Fe Corp. 7.125% 12/15/2010............... 2,150,000 2,318,152 Canadian National Railway Co. 6.45% 07/15/2006................ 675,000 713,306 Series 1997-A2 7.195% 01/02/2016............... 1,188,720 1,241,273 Charter Communications Holdings L.L.C./Charter Communications Holdings Capital Corp. 8.25% 04/01/2027................ 2,000,000 1,340,000 Coca-Cola Enterprises, Inc. 6.75% 01/15/2038................ 1,045,000 1,046,494 Coors Brewing Co. (144A) 6.375% 05/15/2012............... 900,000 927,790 Cott Beverages, Inc. 8.00% 12/15/2011................ 500,000 507,500
See Accompanying Notes to Financial Statements 63 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
COLUMBIA BALANCED FUND (CONT.) JUNE 30, 2002 (UNAUDITED) PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- Cox Enterprises, Inc. (144A) 8.00% 02/15/2007................ $ 2,100,000 $ 2,109,706 CSC Holdings, Inc. 7.875% 12/15/2007............... 1,250,000 1,006,325 Devon Financing Corp. U.L.C. 6.875 09/30/2011................ 1,550,000 1,616,986 Diageo Capital plc 6.625% 06/24/2004............... 3,000,000 3,191,190 Dow Chemical Co. 7.375% 11/01/2029............... 1,030,000 1,089,277 Federal Express Corp. Pass Thru Trust Series 1997-1C 7.65% 01/15/2014................ 1,863,410 1,917,039 Harrah's Operating Co., Inc. 7.875% 12/15/2005............... 500,000 515,000 HCA-The Healthcare Co. 6.91% 06/15/2005................ 1,450,000 1,493,036 Honeywell International, Inc. 7.50% 03/01/2010................ 2,120,000 2,360,832 International Paper Co. 8.00% 07/08/2003................ 1,700,000 1,777,792 6.75% 09/01/2011................ 1,000,000 1,030,900 KB Home 8.625% 12/15/2008............... 1,000,000 1,015,000 Lear Corp. Series B 7.96% 05/15/2005................ 2,000,000 2,063,338 Lowe's Cos., Inc. 6.50% 03/15/2029................ 2,000,000 1,927,492 MeadWestvaco Corp. 6.85% 04/01/2012................ 1,100,000 1,156,912 Mediacom L.L.C./Mediacom Capital Corp. 9.50% 01/15/2013................ 500,000 415,000 Omnicare, Inc. 8.125% 03/15/2011............... 1,000,000 1,035,000 Park Place Entertainment Corp. 9.375% 02/15/2007............... 1,825,000 1,911,688 Pennzoil-Quaker State Co. 10.00% 11/01/2008............... 500,000 588,125 Phillips Petroleum Co. 8.50% 05/25/2005................ 2,090,000 2,330,893 Pride International, Inc. 9.375% 05/01/2007............... 500,000 521,250 Procter & Gamble Co. 4.75% 06/15/2007................ 1,550,000 1,565,943 Select Medical Corp. 9.50% 06/15/2009................ 500,000 507,500
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PRINCIPAL AMOUNT VALUE Starwood Hotels & Resorts Worldwide, Inc. (144A) 7.875% 05/01/2012............... $ 500,000 $ 492,500 Station Casinos, Inc. 9.75% 04/15/2007................ 2,000,000 2,062,500 TCI Communications, Inc. 8.00% 08/01/2005................ 1,000,000 988,910 7.25% 08/01/2005................ 1,585,000 1,538,116 Teekay Shipping Corp. 8.875% 07/15/2011............... 1,000,000 1,045,000 Time Warner, Inc. 7.975% 08/15/2004............... 2,303,000 2,424,175 Toll Corp. 7.75% 09/15/2007................ 1,000,000 982,500 United Rentals, Inc., Series B 10.75% 04/15/2008............... 2,000,000 2,130,000 United Technologies Corp. 6.50% 06/01/2009................ 1,685,000 1,776,765 7.125% 11/15/2010............... 910,000 997,133 Verizon Global Funding Corp. 7.25% 12/01/2010................ 1,800,000 1,793,808 Yum! Brands, Inc. 8.50% 04/15/2006................ 500,000 522,500 --------------- 66,072,638 --------------- FINANCIAL (3.9%) Bank of America Corp. 7.80% 02/15/2010................ 2,950,000 3,277,391 CIT Group, Inc. 7.25% 08/15/2005................ 1,800,000 1,734,318 Citigroup, Inc. 7.25% 10/01/2010................ 2,000,000 2,170,760 Ford Motor Credit Co. 6.875% 02/01/2006............... 2,200,000 2,246,926 7.375% 10/28/2009............... 1,885,000 1,913,482 General Electric Capital Corp. 6.00% 06/15/2012................ 2,350,000 2,343,190 General Motors Acceptance Corp. Medium Term Notes 5.25% 05/16/2005................ 2,200,000 2,214,947 Health Care Property Investors, Inc. 6.50% 02/15/2006................ 500,000 511,125 6.45% 06/25/2012................ 1,500,000 1,497,273 Household Finance Corp. 6.40% 06/17/2008................ 2,690,000 2,702,804 Travelers Property Casualty Corp. 6.75% 11/15/2006................ 2,350,000 2,498,097 U.S. Bank N.A. 6.375% 08/01/2011............... 3,200,000 3,318,208 Wachovia Corp. 4.95% 11/01/2006................ 1,500,000 1,510,995
See Accompanying Notes to Financial Statements 64 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- Washington Mutual, Inc. 5.625% 01/15/2007............... $ 2,000,000 $ 2,042,820 Wells Fargo & Co. 7.25% 08/24/2005................ 2,000,000 2,174,200 --------------- 32,156,536 --------------- UTILITIES (3.2%) Calpine Corp. 7.625% 04/15/2006............... 1,000,000 680,000 Coastal Corp. 6.50% 05/15/2006................ 1,230,000 1,192,030 7.625% 09/01/2008............... 1,500,000 1,492,290 El Paso Corp. Medium Term Notes 7.75% 01/15/2032................ 1,500,000 1,390,875 FPL Group Capital, Inc. 6.125% 05/15/2007............... 2,675,000 2,747,733 Kinder Morgan Energy Partners L.P. 8.00% 03/15/2005................ 2,325,000 2,513,495 Pinnacle West Capital Corp. 6.40% 04/01/2006................ 4,100,000 4,214,677 Progress Energy, Inc. 7.75% 03/01/2031................ 1,000,000 1,065,540 Southern Power Co. (144A) 6.25% 07/15/2012................ 2,300,000 2,310,704 Sprint Capital Corp. 6.00% 01/15/2007................ 2,135,000 1,664,993 Texas Eastern Transmission Corp. 7.30% 12/01/2010................ 2,000,000 2,137,600 TXU Eastern Funding Co. 6.45% 05/15/2005................ 4,200,000 4,309,696 --------------- 25,719,633 --------------- INTERNATIONAL (0.8%) British Columbia Province 5.375% 10/29/2008............... 2,150,000 2,228,432 Quebec Province 6.50% 01/17/2006................ 3,100,000 3,327,850 7.125% 02/09/2024............... 1,000,000 1,089,970 --------------- 6,646,252 --------------- Total Corporate Notes & Bonds (Cost $127,625,794)................. 130,595,059 --------------- OTHER SECURITIZED LOANS (8.4%) ASSET BACKED SECURITIES (3.4%) Cityscape Home Equity Loan Trust Series 1997-B Cl. A7 7.41% 05/25/2028................ 2,648,676 2,816,232 Cityscape Home Loan Owner Trust Series 1997-4 Cl. A4 7.44% 10/25/2018................ 2,972,642 3,185,053
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PRINCIPAL AMOUNT VALUE First Alliance Mortgage Trust Series 1996-1 Cl. A1 7.34% 06/20/2027................ $ 394,630 $ 394,630 IMC Home Equity Loan Trust Series 1997-3 Cl. A6 7.52% 08/20/2028................ 2,500,000 2,622,406 Series 1997-5 Cl. A9 7.31% 11/20/2028................ 2,180,000 2,293,110 Merit Securities Corp. Series 13 Cl. A4 7.88% 12/28/2033................ 6,620,000 7,053,341 Salomon Brothers Mortgage Securities VII, Inc. Series 1998-Aq1 Cl. A5 7.15% 06/25/2028................ 3,150,000 3,352,446 **SLM Student Loan Trust Series 1997-4 Cl. A2 2.46% 10/25/2010................ 5,525,000 5,585,961 --------------- 27,303,179 --------------- COLLATERALIZED MORTGAGE OBLIGATIONS (3.5%) **Bear Stearns Mortgage Securities, Inc. Series 1996-2 Cl. A1 4.63% 01/28/2025................ 2,688,086 2,504,947 CMC Securities Corp. IV Series 1997-2 Cl. 1A12 7.25% 11/25/2027................ 6,733,942 6,938,822 First Nationwide Trust Series 2000-1 Cl. 2A3 8.00% 10/25/2030................ 4,885,807 5,192,100 Headlands Mortgage Securities, Inc. Series 1997-3 Cl. 1A6 7.00% 07/25/2027................ 1,451,312 1,449,317 PNC Mortgage Securities Corp. Series 1999-5 Cl. 2A6 6.75% 07/25/2029................ 694,701 709,043 Residential Asset Securitization Trust Series 2002-A7 Cl. A2 5.18% 11/25/2026................ 5,130,000 5,141,286 **SACO I, Inc. (144A) Series 1995-1 Cl. A 5.66% 09/25/2024................ 1,254,540 1,255,137 Structured Asset Securities Corp. Series 1999-ALS2 Cl. A2 6.75% 07/25/2029................ 3,267,392 3,362,129 Series 2001-12 Cl. 1-A4 5.80% 09/25/2031................ 1,640,969 1,663,951 --------------- 28,216,732 ---------------
See Accompanying Notes to Financial Statements 65 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
COLUMBIA BALANCED FUND (CONT.) JUNE 30, 2002 (UNAUDITED) PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- COMMERCIAL MORTGAGE BACKED SECURITIES (1.5%) Commercial Capital Access One, Inc. (144A) Series 3A Cl. A2 6.615% 11/15/2028............... $ 6,460,000 $ 6,821,125 **GMAC Commercial Mortgage Asset Corp. (144A) Series 2001-FLAA Cl. B1 2.34% 06/15/2013................ 1,979,505 1,974,014 Nationslink Funding Corp. Series 1999-Sl Cl. A5 6.888% 11/10/2030............... 3,660,000 3,951,365 --------------- 12,746,504 --------------- Total Other Securitized Loans (Cost $65,843,276).................. 68,266,415 --------------- REPURCHASE AGREEMENT (5.4%) ++J.P. Morgan Securities, Inc. 1.85% dated 06/28/2002, due 07/01/2002 in the amount of $43,736,873. Collateralized by U.S. Treasury Bills due 07/05/2002 to 11/29/2014 U.S. Treasury Strips due 02/15/2010 to 08/15/2028 (Cost $43,730,215).............. 43,730,215 43,730,215 --------------- TOTAL INVESTMENTS (104.5%) (Cost $828,448,774)............... 846,456,250 OTHER ASSETS LESS LIABILITIES (-4.5%)............................. (36,350,569) --------------- NET ASSETS (100.0%).................. $ 810,105,681 ===============
* Non-income producing. ** Variable rate security - the rate reported is the rate in effect as of June 30, 2002. + A portion of this security purchased on when-issued basis. ++ A portion of this security was segregated at the custodian to cover a when-issued security.
COLUMBIA SHORT TERM BOND FUND JUNE 30, 2002 (UNAUDITED) PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- U.S. GOVERNMENT SECURITIES (27.0%) U.S. TREASURY BILLS (0.4%) 1.73% 08/01/2002.................. $ 300,000 $ 299,584 --------------- U.S. TREASURY NOTES & BONDS (4.2%) U.S. Treasury Notes 3.50% 11/15/2006................ 2,780,000 2,731,353 U.S. Treasury Inflation Index Bonds 3.375% 01/15/2007............... 862,326 897,224 --------------- 3,628,577 --------------- U.S. AGENCY BONDS (6.1%) ++Federal Home Loan Bank 5.375% 01/05/2004............... 3,425,000 3,561,281 Federal Home Loan Mortgage Corp. 5.25% 01/15/2006................ 1,500,000 1,563,960 Federal National Mortgage Association 3.125% 11/15/2003............... 75,000 75,754 --------------- 5,200,995 --------------- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) (4.5%) 6.00% 06/15/2032.................. 378,963 379,385 7.00% 09/15/2031 - 05/15/2032..... 3,317,873 3,452,920 --------------- 3,832,305 --------------- FEDERAL HOME LOAN MORTGAGE CORP. (FHLMC) (1.4%) FHLMC Gold Pool #E84751 6.50% 08/01/2016................ 1,182,106 1,227,026 --------------- FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) (7.8%) 6.00% 03/01/2009 - 06/01/2017..... 4,273,284 4,383,428 +6.50% 07/25/2032................. 260,000 265,469 7.00% 12/01/2031.................. 1,952,290 2,024,701 --------------- 6,673,598 --------------- AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS (2.6%) FNMA Gtd. Remic Pass Thru Ctf Remic Tr. 1991-146 Cl. Z 8.00% 10/25/2006................ 82,268 86,638 Remic Tr. 2001-70 Cl. CA 6.00% 05/25/2030................ 915,276 931,328
See Accompanying Notes to Financial Statements 66 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- FHLMC Multiclass Mtg. Partn. Ctfs Gtd. Series 1138 Cl. G 8.50% 09/15/2006................ $ 197,157 $ 206,829 Gtd. Series 2052 Cl. PG 6.25% 02/15/2023................ 963,705 990,742 --------------- 2,215,537 --------------- Total U.S. Government Securities (Cost $22,773,996).................. 23,077,622 --------------- CORPORATE NOTES (32.3%) INDUSTRIAL (15.3%) Alcoa, Inc. 7.25% 08/01/2005................ 750,000 804,195 American Home Products Corp. 6.25% 03/15/2006................ 350,000 373,597 BP America, Inc. Medium Term Notes, Series 7 5.00% 12/16/2003................ 500,000 515,521 Caterpillar Financial Services Corp. 6.875% 08/01/2004............... 500,000 530,645 Coca-Cola Enterprises, Inc. 8.00% 01/04/2005................ 650,000 710,190 Conoco, Inc. 5.90% 04/15/2004................ 600,000 623,952 Costco Wholesale Corp. 5.50% 03/15/2007................ 640,000 659,994 Cox Enterprises, Inc. (144A) 8.00% 02/15/2007................ 725,000 728,351 Diageo Capital plc 6.625% 06/24/2004............... 700,000 744,611 Dow Chemical Co. 7.00% 08/15/2005................ 750,000 798,300 Honeywell International, Inc. 5.125% 11/01/2006............... 600,000 605,515 International Paper Co. 8.00% 07/08/2003................ 800,000 836,608 Lowe's Cos., Inc. 7.50% 12/15/2005................ 300,000 326,883 Pepsi Bottling Holdings, Inc. (144A) 5.375% 02/17/2004............... 750,000 775,639 Phillips Petroleum Co. 8.50% 05/25/2005................ 500,000 557,630 Procter & Gamble Co. 4.75% 06/15/2007................ 325,000 328,343 TCI Communications, Inc. 7.25% 08/01/2005................ 675,000 655,033 Time Warner, Inc. 7.975% 08/15/2004............... 650,000 684,200 United Technologies Corp. 4.875% 11/01/2006............... 550,000 553,905
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PRINCIPAL AMOUNT VALUE Verizon Global Funding Corp. Medium Term Notes, Series A 7.60% 03/15/2007................ $ 600,000 $ 657,679 WellPoint Health Networks, Inc. 6.375% 06/15/2006............... 610,000 642,798 --------------- 13,113,589 --------------- FINANCIAL (10.1%) Bank of America Corp. 7.625% 06/15/2004............... 675,000 725,092 CIT Group, Inc. 7.25% 08/15/2005................ 245,000 236,060 7.625% 08/16/2005............... 125,000 122,635 Citigroup, Inc. 6.75% 12/01/2005................ 850,000 912,671 Equitable Cos., Inc. 9.00% 12/15/2004................ 700,000 779,121 Ford Motor Credit Co. 6.875% 02/01/2006............... 725,000 740,464 General Motors Acceptance Corp. Medium Term Notes 5.25% 05/16/2005................ 450,000 453,057 Health Care Property Investors, Inc. 6.875% 06/08/2005............... 625,000 649,956 Household Finance Corp. 6.40% 06/17/2008................ 725,000 728,451 Simon Property Group L.P. 6.625% 06/15/2003............... 800,000 822,168 U.S. Bancorp 5.10% 07/15/2007................ 675,000 686,903 Wachovia Corp. 4.95% 11/01/2006................ 600,000 604,398 Washington Mutual, Inc. 5.625% 01/15/2007............... 350,000 357,493 Wells Fargo & Co. 7.25% 08/24/2005................ 750,000 815,325 --------------- 8,633,794 --------------- UTILITIES (5.8%) Coastal Corp. 6.50% 05/15/2006................ 625,000 605,706 FPL Group Capital, Inc. 6.875% 06/01/2004............... 500,000 524,610 7.625% 09/15/2006............... 500,000 545,815 Kinder Morgan Energy Partners L.P. 8.00% 03/15/2005................ 550,000 594,590 Pinnacle West Capital Corp. 6.40% 04/01/2006................ 600,000 616,782 Progress Energy, Inc. 5.85% 10/30/2008................ 650,000 655,640
See Accompanying Notes to Financial Statements 67 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
COLUMBIA SHORT TERM BOND FUND (CONT.) JUNE 30, 2002 (UNAUDITED) PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- Sprint Capital Corp. 6.00% 01/15/2007................ $ 350,000 $ 272,950 Texas Eastern Transmission Corp. 5.25% 07/15/2007................ 450,000 450,868 TXU Eastern Funding Co. 6.45% 05/15/2005................ 700,000 718,283 --------------- 4,985,244 --------------- INTERNATIONAL (1.1%) Quebec Province 6.50% 01/17/2006................ 600,000 644,100 Kingdom of Spain 7.00% 07/19/2005................ 275,000 300,432 --------------- 944,532 --------------- Total Corporate Notes (Cost $27,195,245).................. 27,677,159 --------------- OTHER SECURITIZED LOANS (33.7%) ASSET BACKED SECURITIES (14.1%) AmeriCredit Automobile Receivables Trust Series 2000-1 Cl. B 7.16% 09/05/2005................ 690,000 730,710 IMC Home Equity Loan Trust Series 1995-3 Cl. A5 7.50% 04/25/2026................ 972,000 988,728 Series 1997-3 Cl. A6 7.52% 08/20/2028................ 1,300,000 1,363,651 Series 1997-3 Cl. A7 7.08% 08/20/2028................ 608,188 634,974 Mellon Bank Home Equity Installment Loan Trust Series 1998-1 Cl. A3 6.32% 06/25/2012................ 377,777 381,953 Merit Securities Corp. Series 13 Cl. A4 7.88% 12/28/2033................ 1,430,000 1,523,607 *SLM Student Loan Trust Series 1997-2 Cl. A2 2.31% 01/25/2010................ 990,000 993,391 Series 1997-4 Cl. A2 2.46% 10/25/2010................ 2,250,000 2,274,826 Series 1998-1 Cl. A2 2.47% 10/25/2011................ 1,920,000 1,941,170 The Money Store Home Equity Loan Trust Series 1996-C Cl. A7 7.91% 12/15/2027................ 1,000,000 1,034,963
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PRINCIPAL AMOUNT VALUE UCFC Home Equity Loan Trust Series 1996-B1 Cl. A7 8.20% 09/15/2027................ $ 240,000 $ 249,626 --------------- 12,117,599 --------------- COLLATERALIZED MORTGAGE OBLIGATIONS (17.7%) Citicorp Mortgage Securities, Inc. Series 1998-2 Cl. A4 6.75% 04/25/2028................ 2,397,000 2,434,405 First Financial Mortgage Trust Series 9 Cl. A4 5.80% 11/25/2008................ 833,041 846,935 Headlands Mortgage Securities, Inc. Series 1997-3 Cl. 1A6 7.00% 07/25/2027................ 398,062 397,515 Impac Secured Assets Common Owner Trust Series 2002-3 Cl. A2 5.21% 08/25/2032................ 675,000 679,927 OCWEN Residential MBS Corp. (144A) Series 1998-R1 Cl. A1 7.00% 10/25/2040................ 738,713 757,376 PNC Mortgage Securities Corp. Series 1998-12 Cl. 4A5 6.475% 01/25/2029............... 391,927 401,900 Series 1999-5 Cl. 2A6 6.75% 07/25/2029................ 478,102 487,972 *PNC Mortgage Securities Corp. (144A) Series 1996-PR1 Cl. A 6.09% 04/28/2027................ 314,197 308,884 Residential Asset Securities Corp. Series 2000-KS1 Cl. AI3 7.735% 10/25/2025............... 294,642 302,129 Residential Asset Securitization Trust Series 2002-A1 Cl. A2 5.35% 09/25/2026................ 1,200,000 1,213,910 Series 1999-A1 Cl. A1 6.75% 03/25/2029................ 1,002,962 1,029,732 Series 1999-A4 Cl. A1 6.50% 03/25/2029................ 324,929 331,172 Series 2002-A5 Cl. A2 5.82% 05/25/2035................ 1,750,000 1,779,392 Residential Funding Mortgage Securities I, Inc. Series 1999-S25 Cl. A1 6.75% 12/25/2014................ 181,280 186,905 Saco I, Inc. (144A) Series 1997-2 Cl. 1A5 7.00% 08/25/2036................ 750,000 780,689
See Accompanying Notes to Financial Statements 68 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- Structured Asset Mortgage Investments, Inc. Series 2002-3 Cl. 1A 6.75% 07/28/2028................ $ 1,300,458 $ 1,351,272 Structured Asset Securities Corp. Series 1999-ALS2 Cl. A2 6.75% 07/25/2029................ 478,858 492,742 Series 2001-2 Cl. 1A1 6.50% 03/25/2031................ 492,692 499,649 Washington Mutual Mortgage Securities Corp. Series 2001-MS10 Cl. 3A1 6.50% 09/25/2031................ 842,100 864,099 --------------- 15,146,605 --------------- COMMERCIAL MORTGAGE BACKED SECURITIES (1.9%) *GMAC Commercial Mortgage Asset Corp. (144A) Series 2001-FLAA Cl. B1 2.34% 06/15/2013................ 719,820 717,823 Merrill Lynch Mortgage Investors, Inc. Series 1996-C1 Cl. A3 7.42% 04/25/2028................ 825,000 886,997 --------------- 1,604,820 --------------- Total Other Securitized Loans (Cost $28,424,037).................. 28,869,024 --------------- REPURCHASE AGREEMENTS (6.1%) J.P. Morgan Securities, Inc. 1.85% dated 06/28/2002, due 07/01/2002 in the amount of $3,216,990. Collateralized by U.S. Treasury Bills due 07/05/2002 to 11/29/2014 U.S. Treasury Strips due 02/15/2010 to 08/15/2028........ 3,216,501 3,216,501 Merrill Lynch 1.80% dated 06/28/2002, due 07/01/2002 in the amount of $2,000,296. Collateralized by U. S. Treasury Strips due 08/15/2012 to 08/15/2017........ 2,000,000 2,000,000 --------------- Total Repurchase Agreements (Cost $5,216,501)......................... 5,216,501 ---------------
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VALUE TOTAL INVESTMENTS (99.1%) (Cost $83,609,779).................. $ 84,840,306 OTHER ASSETS LESS LIABILITIES (0.9%).............................. 733,618 --------------- NET ASSETS (100.0%).................. $ 85,573,924 ===============
* Variable rate security - the rate reported is the rate in effect as of June 30, 2002. + A portion of this security purchased on 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, 2002 (UNAUDITED) PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- U.S. GOVERNMENT SECURITIES (38.2%) U.S. TREASURY BILLS (1.3%) 1.73% 08/01/2002................ $ 6,200,000 $ 6,191,407 --------------- U.S. TREASURY NOTES & BONDS (8.0%) U.S. Treasury Bonds 8.875% 08/15/2017............... 16,435,000 22,172,902 6.25% 08/15/2023................ 6,910,000 7,405,723 U.S. Treasury Inflation Index Bonds 3.375% 01/15/2007............... 8,084,310 8,411,474 --------------- 37,990,099 --------------- U.S. AGENCY BONDS (1.4%) Federal Home Loan Bank 5.375% 01/05/2004............... 2,275,000 2,365,522 Federal National Mortgage Association 7.125% 01/15/2030............... 3,875,000 4,339,264 --------------- 6,704,786 --------------- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) (10.0%) 6.00% 08/15/2031 - 02/15/2032... 6,001,820 6,008,500 6.50% 10/15/2031 - 12/15/2031... 6,156,058 6,295,049 7.00% 01/15/2031 - 05/15/2031... 34,062,037 35,448,464 8.00% 05/15/2031................ 60,012 63,947 --------------- 47,815,960 --------------- FEDERAL HOME LOAN MORTGAGE CORP. (FHLMC) (4.4%) 6.00% 03/01/2017................ 1,157,260 1,182,647 6.50% 08/01/2016 - 05/01/2032... 19,064,155 19,612,673 --------------- 20,795,320 ---------------
See Accompanying Notes to Financial Statements 69 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
COLUMBIA FIXED INCOME SECURITIES FUND (CONT.) JUNE 30, 2002 (UNAUDITED) PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) (6.4%) ++6.00% 03/01/2009 - 05/01/2017... $ 10,618,253 $ 10,894,909 +6.15% 06/25/2032................. 2,004,338 2,047,305 +6.50% 07/25/2032................. 1,730,000 1,766,390 +7.00% 07/01/2031 - 11/01/2031.... 14,929,816 15,483,563 --------------- 30,192,167 --------------- FEDERAL HOUSING ADMINISTRATION (FHA) (0.5%) FHA Insured Project Pool #051-11078 8.35% 04/01/2030................ 2,145,059 2,283,061 --------------- AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS (6.2%) FNMA Gtd. Remic Pass Thru Ctf Remic Tr. 1996-W2 Cl. A7 7.80% 06/25/2026................ 1,000,000 1,088,901 Remic Tr. 2001-56 Cl. KD 6.50% 07/25/2030................ 1,920,000 1,985,144 Remic Tr. 2001-55 Cl. PC 6.50% 10/25/2031................ 5,418,000 5,486,054 FHLMC GNMA Multiclass Mtg. Partn. Ctfs Gtd. Series 24 Cl. J 6.25% 11/25/2023................ 2,310,000 2,405,915 FHLMC Multiclass Mtg. Partn. Ctfs Gtd. Series 2235 Cl. VN 7.00% 06/15/2014................ 4,680,000 4,991,357 Gtd. Series 1558 Cl. C 6.50% 07/15/2023................ 2,991,000 3,164,501 Gtd. Series 2065 Cl. PB 6.25% 01/15/2024................ 1,050,000 1,092,326 Gtd. Series 2085 Cl. PD 6.25% 11/15/2026................ 2,471,000 2,528,896 Gtd. Series 2113 Cl. MU 6.50% 08/15/2027................ 2,480,000 2,566,006 Gtd. Series 2462 Cl. JE 6.50% 11/15/2030................ 3,880,000 3,999,892 --------------- 29,308,992 --------------- Total U.S. Government Securities (Cost $175,635,884)................. 181,281,792 --------------- CORPORATE NOTES & BONDS (38.8%) INDUSTRIAL (20.2%) Alcan, Inc. 7.25% 03/15/2031................ 1,275,000 1,357,747 Alcoa, Inc. 6.75% 01/15/2028................ 950,000 969,218 Series B 6.50% 06/15/2018................ 975,000 971,607
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JUNE 30, 2002 (UNAUDITED) PRINCIPAL AMOUNT VALUE Allied Waste North America, Inc. Series B 10.00% 08/01/2009............... $ 1,000,000 $ 982,500 American Home Products Corp. 6.25% 03/15/2006................ 2,000,000 2,134,840 AmerisourceBergen Corp. 8.125% 09/01/2008............... 500,000 513,750 Anadarko Finance Co. Series B 7.50% 05/01/2031................ 3,185,000 3,391,038 Anheuser-Busch Cos., Inc. 5.75% 04/01/2010................ 3,800,000 3,862,738 Ball Corp. 7.75% 08/01/2006................ 850,000 878,687 BP Amoco plc 5.90% 04/15/2009................ 1,800,000 1,839,726 Burlington Northern Sante Fe Corp. 7.125% 12/15/2010............... 1,900,000 2,048,599 6.75% 07/15/2011................ 2,000,000 2,105,660 Charter Communications Holdings L.L.C./Charter Communications Holdings Capital Corp. 8.25% 04/01/2007................ 2,000,000 1,340,000 Coca-Cola Enterprises, Inc. 6.75% 01/15/2038................ 1,000,000 1,001,430 Coors Brewing Co. (144A) 6.375% 05/15/2012............... 1,150,000 1,185,510 Costco Wholesale Corp. 5.50% 03/15/2007................ 1,900,000 1,959,356 Cott Beverages, Inc. 8.00% 12/15/2011................ 500,000 507,500 Cox Enterprises, Inc. (144A) 8.00% 02/15/2007................ 2,250,000 2,260,400 CSC Holdings, Inc. 7.875% 12/15/2007............... 3,000,000 2,415,180 Devon Financing Corp. U.L.C. 6.875 09/30/2011................ 1,650,000 1,721,308 Diageo Capital plc 6.625% 06/24/2004............... 2,700,000 2,872,071 Dow Chemical Co. 7.375% 11/01/2029............... 925,000 978,234 Extended Stay America, Inc. 9.875% 06/15/2011............... 500,000 512,500 Federal Express Corp. Pass Thru Trust Series 1997-1C 7.65% 01/15/2014................ 1,948,111 2,004,177 Fox/Liberty Networks L.L.C 8.875% 08/15/2007............... 500,000 510,000 Harrah's Operating Co., Inc. 7.875% 12/15/2005............... 500,000 515,000
See Accompanying Notes to Financial Statements 70 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- HCA-The Healthcare Co. 6.91% 06/15/2005................ $ 500,000 $ 514,840 Honeywell International, Inc. 7.50% 03/01/2010................ 4,200,000 4,677,120 International Game Technology 7.875% 05/15/2004............... 700,000 721,000 8.375% 05/15/2009............... 250,000 263,125 International Paper Co. 8.00% 07/08/2003................ 3,925,000 4,104,608 6.75% 09/01/2011................ 1,095,000 1,128,836 Iron Mountain, Inc. 8.625% 04/01/2013............... 1,000,000 1,025,000 KB Home 8.625% 12/15/2008............... 1,000,000 1,015,000 L-3 Communications Corp. (144A) 7.625% 06/15/2012............... 260,000 260,813 Lear Corp., Series B 7.96% 05/15/2005................ 1,500,000 1,547,504 Lowe's Cos., Inc. 6.50% 03/15/2029................ 2,200,000 2,120,241 MeadWestvaco Corp. 6.85% 04/01/2012................ 1,500,000 1,577,607 Mediacom L.L.C./Mediacom Capital Corp. 9.50% 01/15/2013................ 750,000 622,500 Park Place Entertainment Corp. 9.375% 02/15/2007............... 2,725,000 2,854,437 Pennzoil-Quaker State Co. 10.00% 11/01/2008............... 500,000 588,125 Pepsi Bottling Holdings, Inc. (144A) 5.625% 02/17/2009............... 5,000,000 5,069,050 Phillips Petroleum Co. 8.50% 05/25/2005................ 3,625,000 4,042,818 Pride International, Inc. 9.375% 05/01/2007............... 500,000 521,250 Procter & Gamble Co. 4.75% 06/15/2007................ 1,950,000 1,970,058 Scotts Co., The 8.625% 01/15/2009............... 350,000 357,000 Select Medical Corp. 9.50% 06/15/2009................ 500,000 507,500 Starwood Hotels & Resorts Worldwide, Inc. (144A) 7.875% 05/01/2012............... 1,000,000 985,000 Station Casinos, Inc. 9.75% 04/15/2007................ 2,000,000 2,062,500 TCI Communications, Inc. 7.25% 08/01/2005................ 3,815,000 3,702,152 Teekay Shipping Corp. 8.875% 07/15/2011............... 1,000,000 1,045,000
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PRINCIPAL AMOUNT VALUE Time Warner, Inc. 7.975% 08/15/2004............... $ 1,950,000 $ 2,052,601 Toll Corp. 7.75% 09/15/2007................ 1,000,000 982,500 United Rentals, Inc. Series B 10.75% 04/15/2008............... 2,000,000 2,130,000 United Technologies Corp. 7.125% 11/15/2010............... 3,000,000 3,287,250 Verizon Global Funding Corp. 7.25% 12/01/2010................ 2,175,000 2,167,518 Yum! Brands, Inc. 8.50% 04/15/2006................ 1,250,000 1,306,250 --------------- 96,047,979 --------------- FINANCIAL (10.6%) Bank of America Corp. 5.875% 02/15/2009............... 1,355,000 1,368,265 7.80% 02/15/2010................ 2,700,000 2,999,646 CIT Group, Inc. 7.25% 08/15/2005................ 1,940,000 1,869,209 Citigroup, Inc. 7.25% 10/01/2010................ 3,500,000 3,798,830 Equitable Cos., Inc. 9.00% 12/15/2004................ 1,190,000 1,324,506 Ford Motor Credit Co. 6.875% 02/01/2006............... 5,700,000 5,821,581 General Electric Capital Corp. 6.00% 06/15/2012................ 4,065,000 4,053,220 General Motors Acceptance Corp. 5.25% 05/16/2005................ 2,600,000 2,617,664 Health Care Property Investors, Inc. 6.45% 06/25/2012................ 2,690,000 2,685,110 Health Care REIT, Inc. 7.50% 08/15/2007................ 500,000 525,115 Household Finance Corp. 6.40% 06/17/2008................ 4,100,000 4,119,516 Simon Property Group L.P. 6.625% 06/15/2003............... 2,050,000 2,106,806 Simon Property Group, Inc. 6.75% 02/09/2004................ 2,000,000 2,074,660 U.S. Bank N.A. 6.375% 08/01/2011............... 4,000,000 4,147,760 Wachovia Corp. 4.95% 11/01/2006................ 4,330,000 4,361,739 Washington Mutual, Inc. 5.625% 01/15/2007............... 2,405,000 2,456,491 Wells Fargo Financial, Inc. 4.875% 06/12/2007............... 4,175,000 4,174,027 --------------- 50,504,145 ---------------
See Accompanying Notes to Financial Statements 71 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
COLUMBIA FIXED INCOME SECURITIES FUND (CONT.) JUNE 30, 2002 (UNAUDITED) PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- UTILITIES (6.4%) Calpine Corp. 7.625% 04/15/2006............... $ 450,000 $ 306,000 8.75% 07/15/2007................ 1,000,000 680,000 Coastal Corp. 7.625% 09/01/2008............... 2,675,000 2,661,250 El Paso Corp. Medium Term Notes 7.75% 01/15/2032................ 1,800,000 1,669,050 FPL Group Capital, Inc. 6.125% 05/15/2007............... 4,200,000 4,314,198 Kinder Morgan Energy Partners L.P. 6.75% 03/15/2011................ 3,250,000 3,336,775 Pinnacle West Capital Corp. 6.40% 04/01/2006................ 3,550,000 3,649,294 Progress Energy, Inc. 7.75% 03/01/2031................ 2,115,000 2,253,617 Southern Power Co. (144A) 6.25% 07/15/2012................ 3,000,000 3,013,962 Sprint Capital Corp. 6.00% 01/15/2007................ 2,700,000 2,105,611 Texas Eastern Transmission Corp. 7.30% 12/01/2010................ 2,175,000 2,324,640 TXU Eastern Funding Co. 6.45% 05/15/2005................ 4,200,000 4,309,696 --------------- 30,624,093 --------------- INTERNATIONAL (1.6%) British Columbia Province 5.375% 10/29/2008............... 1,900,000 1,969,312 Kingdom of Spain 7.00% 07/19/2005................ 1,475,000 1,611,408 Quebec Province 7.00% 01/30/2007................ 2,490,000 2,737,257 7.125% 02/09/2024............... 1,090,000 1,188,067 --------------- 7,506,044 --------------- Total Corporate Notes & Bonds (Cost $181,642,850)................. 184,682,261 --------------- OTHER SECURITIZED LOANS (18.0%) ASSET BACKED SECURITIES (6.9%) Cityscape Home Loan Owner Trust Series 1997-4 Cl. A4 7.44% 10/25/2018................ 2,021,396 2,165,836 ContiMortgage Home Equity Loan Trust Series 1999-3 Cl. A6 7.68% 12/25/2029................ 2,700,000 2,874,162
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JUNE 30, 2002 (UNAUDITED) PRINCIPAL AMOUNT VALUE IMC Home Equity Loan Trust Series 1995-3 Cl. A5 7.50% 04/25/2026................ $ 1,000,000 $ 1,017,210 Series 1997-3 Cl. A6 7.52% 08/20/2028................ 4,660,000 4,888,164 Series 1997-5 Cl. A9 7.31% 11/20/2028................ 5,440,000 5,722,258 New Century Home Equity Loan Trust Series 1999-NCA Cl. A7 7.32% 07/25/2029................ 2,771,814 2,942,714 Oakwood Mortgage Investors, Inc. Series 2000-D Cl. A4 7.40% 07/15/2030................ 5,300,000 5,676,170 Salomon Brothers Mortgage Securities VII, Inc. Series 1998-AQ1 Cl. A5 7.15% 06/25/2028................ 1,960,000 2,085,967 *SLM Student Loan Trust Series 1997-4 Cl. A2 2.46% 10/25/2010................ 5,250,000 5,307,926 --------------- 32,680,407 --------------- COLLATERALIZED MORTGAGE OBLIGATIONS (8.6%) *Bear Stearns Mortgage Securities, Inc. Series 1996-2 Cl. A1 4.63% 01/28/2025................ 2,380,423 2,218,245 CMC Securities Corp. IV Series 1997-2 Cl. 1A12 7.25% 11/25/2027................ 3,525,391 3,632,651 Credit Suisse First Boston Mortgage Securities Corp. Series 2001-11 Cl. 1A3 7.00% 06/25/2031................ 1,865,340 1,947,527 *DLJ Mortgage Acceptance Corp. (144A) Series 1999-B Cl. A1 6.61% 08/28/2029................ 3,241,497 3,075,371 IMPAC Secured Assets Common Owner Trust Series 2002-3 Cl. A2 5.21% 08/25/2032................ 3,150,000 3,172,995 PNC Mortgage Securities Corp. Series 1998-12 Cl. 4A4 6.50% 01/25/2029................ 1,858,026 1,906,196 Series 1999-5 Cl. 2A6 6.75% 07/25/2029................ 2,354,586 2,403,196 Residential Asset Securitization Trust Series 2002-A1 Cl. A2 5.35% 09/25/2026................ 3,120,000 3,156,165 Series 2002-A7 Cl. A2 5.18% 11/25/2026................ 8,370,000 8,388,414 Series 2002-A1 Cl. A4 6.59% 01/25/2030................ 4,848,000 4,976,087
See Accompanying Notes to Financial Statements 72 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- Series 2002-A5 Cl. A2 5.82% 05/25/2035................ $ 1,209,000 $ 1,229,305 Structured Asset Securities Corp. Series 1999-ALS2 Cl. A2 6.75% 07/25/2029................ 2,721,927 2,800,848 Series 2001-12 Cl. 1-A4 5.80% 09/25/2031................ 2,053,611 2,082,372 --------------- 40,989,372 --------------- COMMERCIAL MORTGAGE BACKED SECURITIES (2.5%) Commercial Capital Access One, Inc. (144A) Series 3A Cl. A2 6.615% 11/15/2028............... 6,960,000 7,349,076 *GMAC Commercial Mortgage Asset Corp. (144A) Series 2001-FLAA Cl. B1 2.34% 06/15/2013................ 3,991,494 3,980,420 Nationslink Funding Corp. Series 1999-Sl Cl. A5 6.888% 11/10/2030............... 590,000 636,969 --------------- 11,966,465 --------------- Total Other Securitized Loans (Cost $83,126,484).................. 85,636,244 --------------- REPURCHASE AGREEMENTS (4.4%) ++J.P. Morgan Securities, Inc. 1.85% dated 06/28/2002, due 07/01/2002 in the amount of $12,783,534. Collateralized by U.S. Treasury Bills due 07/05/2002 to 11/29/2014 U.S. Treasury Strips due 02/15/2010 to 08/15/2028................... 12,781,588 12,781,588 ++Merrill Lynch 1.80% dated 06/28/2002, due 07/01/2002 in the amount of $8,001,184. Collateralized by U.S. Treasury Strips due 08/15/2012 to 08/15/2017........ 8,000,000 8,000,000 --------------- Total Repurchase Agreements (Cost $20,781,588).................. 20,781,588 --------------- TOTAL INVESTMENTS (99.4%) (Cost $461,186,806)................. 472,381,885 OTHER ASSETS LESS LIABILITIES (0.6%).............................. 2,800,396 --------------- NET ASSETS (100.0%).................. $ 475,182,281 ===============
* Variable rate security - the rate reported is the rate in effect as of June 30, 2002. + A portion of this 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, 2002 (UNAUDITED) PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- MUNICIPAL BONDS (96.8%) ALASKA (3.5%) Alaska Municipal Bond Bank Authority Series C (Insured Revenue) 5.50% 09/15/2016................ $ 100,000 $ 106,803 Palmer Alaska Valley Hospital Association (Insured Revenue) 5.35% 12/01/2012................ 125,000 132,300 Alaska Industrial Development & Export Authority Snettisham Hydroelectric Series 1 Unrefunded Balance (Insured Revenue) (AMT) 5.50% 01/01/2008................ 95,000 103,609 Alaska Industrial Development & Export Authority Snettisham Hydroelectric Series 1 (Pre- Refunded) (AMT) 5.50% 01/01/2008................ 5,000 5,475 Alaska State Housing Finance Corp. Coll. First Series Veterans Mtg. A2 (Insured General Obligation) (AMT) 6.00% 06/01/2015................ 125,000 130,687 --------------- 478,874 --------------- COLORADO (0.5%) Colorado Housing Finance Authority Single Family Program Sub B (Revenue) 4.875% 04/01/2007............... 70,000 72,864 --------------- GEORGIA (1.1%) Georgia Municipal Electric Power Revenue Series B (Revenue) 5.50% 01/01/2018................ 150,000 150,658 --------------- IDAHO (4.3%) Boise City Idaho Housing Authority Refunding Hobler Place Project (Revenue) 4.75% 02/01/2007................ 200,000 199,992 Boise City Idaho Independent School District Refunding (Insured General Obligation) 4.60% 07/30/2015................ 250,000 252,698
See Accompanying Notes to Financial Statements 73 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
COLUMBIA NATIONAL MUNICIPAL BOND FUND (CONT.) JUNE 30, 2002 (UNAUDITED) PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- Idaho Health Facilities Authority Bingham Memorial Hospital Project (Revenue) 5.85% 03/01/2019................ $ 100,000 $ 96,539 Idaho Student Loan Fund Marketing Association, Inc. Series C (Revenue) (AMT) 5.60% 04/01/2007................ 45,000 46,446 --------------- 595,675 --------------- ILLINOIS (10.3%) Broadview Illinois Tax Increment (Revenue) 4.90% 07/01/2006................ 75,000 75,839 Chicago Illinois Housing Authority Capital Program (Revenue) 5.375% 07/01/2019............... 250,000 255,135 Chicago Illinois Park District Aquarium & Museum (Insured General Obligation) 5.80% 01/01/2018................ 150,000 160,232 Chicago Illinois Public Building Commission Refunding Chicago School Reform-B (Insured Revenue) 5.25% 12/01/2016................ 250,000 271,620 Lake County Illinois Community School District #095 Lake Zurich Capital Appreciation (Insured General Obligation) 0.00% 12/01/2017................ 340,000 153,938 Madison & St Clair Counties Illinois School District #010 Collinsville School Building (Insured General Obligation) 5.50% 02/01/2012................ 250,000 274,585 Regional Transportation Authority Illinois Series A (Insured Revenue) 6.40% 06/01/2012................ 100,000 117,912 Will County Illinois Forest Preservation District Series B (Insured General Obligation) 0.00% 12/01/2011................ 150,000 99,035 --------------- 1,408,296 ---------------
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PRINCIPAL AMOUNT VALUE INDIANA (4.5%) +Indiana Bond Backed Special Program Hendricks Series D (Insured Revenue) 5.375% 04/01/2015............... $ 250,000 $ 266,773 Indiana Transportation Financial Authority Airport Facilities Lease Series A (Revenue) 5.50% 11/01/2017................ 100,000 101,248 West Lafayette Indiana Building Corp. First Mortgage Police Station Project (Insured Revenue) 5.00% 07/15/2018................ 250,000 253,230 --------------- 621,251 --------------- IOWA (1.0%) Iowa Finance Authority Single Family Mortgage Series A (Insured Revenue) 5.80% 07/01/2016................ 135,000 139,566 --------------- KENTUCKY (0.6%) Louisville & Jefferson County Kentucky Visitors & Convention Commission Capital Appreciation Series BBB (Insured Revenue) 0.00% 12/01/2008................ 100,000 75,521 --------------- MAINE (0.8%) Regional Waste System Industry Maine Solid Waste Resource Recovery Series Q (Revenue) (AMT) 5.50% 07/01/2004................ 100,000 105,901 --------------- MICHIGAN (5.4%) Lansing Michigan Board Water & Light Water Supply Steam & Electric Utility System Series A (Revenue) 5.00% 07/01/2015................ 260,000 268,323 Michigan State Hospital Finance Authority Ascension Health Credit Series A (Insured Revenue) 6.00% 11/15/2019................ 100,000 106,426 Michigan State Hospital Finance Authority Ascension Health Credit Series A (Revenue) 5.375% 11/15/2033............... 100,000 106,576
See Accompanying Notes to Financial Statements 74 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- Warren Michigan Downtown Development (Insured General Obligation) 5.00% 10/01/2016................ $ 250,000 $ 259,262 --------------- 740,587 --------------- MISSISSIPPI (2.7%) Jones County Mississippi Hospital Refunding South Central Regional Medical Center (Revenue) 4.90% 12/01/2004................ 100,000 102,974 Mississippi Development Bank Special Obligation Natchez Convention Center Project (Insured Revenue) 6.50% 07/01/2013................ 230,000 273,452 --------------- 376,426 --------------- MISSOURI (1.6%) Missouri State Highways & Transit Commission State Road Revenues Series A (Revenue) 5.625% 02/01/2012............... 200,000 222,378 --------------- MONTANA (1.6%) Whitefish Montana Tax Increment Urban Renewal (Revenue) 6.625% 07/15/2020............... 200,000 213,412 --------------- NEVADA (0.8%) Clark County Nevada Passenger Facility Charge Las Vegas McCarran International Airport B (Insured Revenue) (AMT) 6.25% 07/01/2011................ 100,000 102,367 --------------- NEW YORK (1.9%) New York City, New York Series A (General Obligation) 6.00% 05/15/2021................ 250,000 265,615 --------------- OHIO (2.9%) Oak Hills Ohio Local School District (Insured General Obligation) 7.20% 12/01/2009................ 100,000 122,304 Ohio State Water Development Authority Refunding Fresh Water Series B (Insured Revenue) 5.50% 12/01/2018................ 250,000 276,928 --------------- 399,232 ---------------
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PRINCIPAL AMOUNT VALUE OKLAHOMA (1.6%) Okmulgee County Oklahoma 1st Mortgage (Insured Revenue) 6.00% 03/01/2015................ $ 200,000 $ 219,592 --------------- OREGON (18.4%) Bend Oregon Municipal Airport PJ Series B (Revenue) (AMT) 5.375% 06/01/2013............... 100,000 105,505 Benton County Oregon Hospital Facilities Authority Refunding Samaritan Health Services Project (Revenue) 4.20% 10/01/2005................ 40,000 41,346 4.60% 10/01/2009................ 40,000 41,090 Clackamas County Oregon Limited Tax Assessment 6.25% 05/01/2015................ 200,000 201,204 Clackamas County Oregon Hospital Facility Authority Refunding Odd Fellows Home Series A (Revenue) 5.875% 09/15/2021............... 50,000 43,978 Damascus Oregon Water District Certificates of Participation 5.25% 03/01/2019................ 100,000 99,757 Eugene Oregon Trojan Nuclear Project (Revenue) 5.90% 09/01/2009................ 35,000 35,237 Hillsboro Oregon Hospital Facility Authority Refunding Tuality Healthcare (Revenue) 5.25% 10/01/2004................ 150,000 154,954 Tuality Healthcare (Revenue) 5.75% 10/01/2012................ 25,000 25,377 Klamath Community College, Oregon Service District (Revenue) 4.70% 04/01/2010................ 55,000 56,823 4.80% 04/01/2011................ 25,000 25,810 Lebanon Oregon Urban Renewal Agency (Revenue) 5.625% 06/01/2019............... 100,000 100,637 Linn Benton Community College Oregon (Insured General Obligation) 0.00% 06/15/2015................ 240,000 130,373 Oregon Health Sciences University Capital Appreciation Series A (Insured Revenue) 0.00% 07/01/2016................ 100,000 50,804
See Accompanying Notes to Financial Statements 75 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
COLUMBIA NATIONAL MUNICIPAL BOND FUND (CONT.) JUNE 30, 2002 (UNAUDITED) PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- Oregon School Boards Association Flexfund Financing Program Series E 5.50% 06/01/2005................ $ 100,000 $ 100,310 Oregon State Veterans Welfare Series 75 (General Obligation) 5.875% 10/01/2018............... 25,000 25,868 Oregon State Housing & Community Services Department Single Family Mortgage Program Series B (Revenue) 6.00% 07/01/2012................ 70,000 73,914 Port of St. Helens Oregon Pollution Control Portland General Electric Co. Series B (Revenue) 4.80% 06/01/2010................ 105,000 94,187 Portland Oregon Housing Authority Pearl Court Apartments (Revenue) (AMT) 5.55% 01/01/2003................ 100,000 100,444 Redmond Oregon Urban Renewal Agency Downtown Area B (Revenue) 5.65% 06/01/2013................ 100,000 101,922 Salem Oregon Educational Facilities Refunding Willamette University Projects (Revenue) 6.00% 04/01/2010................ 100,000 104,384 Willamette University Projects (Revenue) 6.10% 04/01/2014................ 120,000 126,798 Salem Oregon Hospital Facility Authority Capital Manor, Inc. (Revenue) 7.50% 12/01/2024................ 150,000 155,634 Sunriver Oregon Library County Service District (General Obligation) 5.75% 06/01/2004................ 20,000 21,329 Washington County Oregon Housing Authority Multi Family Tualatin Meadows (Insured Revenue) (AMT) 5.90% 11/01/2018................ 100,000 103,903 Affordable Housing Pool Series A (Revenue) 6.00% 07/01/2020................ 100,000 98,594
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PRINCIPAL AMOUNT VALUE Washington & Clackamas Counties Oregon School District #23J Tigard (Oregon General Obligation) 0.00% 06/15/2021................ $ 350,000 $ 128,020 West Linn Oregon Water System (Revenue) 6.00% 10/01/2020................ 165,000 167,671 --------------- 2,515,873 --------------- SOUTH DAKOTA (1.1%) South Dakota State Building Authority Lease Capital Appreciation Series A (Insured Revenue) 0.00% 12/01/2013................ 250,000 147,645 --------------- TENNESSEE (4.2%) Knoxville Tennessee Gas System Series J (Revenue) 5.00% 03/01/2015................ 250,000 257,697 Lawrenceburg Tennessee Public Building Authority Electric System Public Works, Series C (Insured General Obligation) 5.50% 07/01/2016................ 295,000 316,479 --------------- 574,176 --------------- TEXAS (13.7%) Amarillo Texas Health Facilities Corp. Baptist St. Anthony's Hospital Corp. (Insured Revenue) 5.50% 01/01/2013................ 100,000 109,305 Arlington Texas Independent School District Capital Appreciation Refunding (Insured General Obligation) 0.00% 02/15/2007................ 150,000 126,860 Cleburne Texas Capital Appreciation Certificates Obligation (Insured General Obligation) 0.00% 02/15/2017................ 450,000 203,868 Harris County Texas Health Facilities De Teco Project Series B (Insured Revenue) 5.70% 02/15/2015................ 150,000 161,704 Klein Texas Independent School District (Insured General Obligation) 5.00% 08/01/2015................ 180,000 186,415
See Accompanying Notes to Financial Statements 76 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- Laredo Texas Sports Venue Sales Tax (Insured Revenue) 5.75% 03/15/2013................ $ 200,000 $ 216,826 Lubbock Texas Health Facility Development St. Joseph's Health System (Revenue) 5.25% 07/01/2012................ 150,000 155,985 ++Magnolia Texas Independent School District (Insured General Obligation) 5.25% 08/15/2017................ 280,000 291,791 North Texas Municipal Water District Texas Water System Revenue (Insured Revenue) 5.00% 09/01/2014................ 250,000 261,267 West Harris County Texas Municipal Utility District #7 Capital Appreciation Refunding (Insured General Obligation) 0.00% 03/01/2009................ 225,000 167,875 --------------- 1,881,896 --------------- WASHINGTON (11.2%) Jefferson County Washington Public Utility District #1 Water & Sewer (Revenue) 5.25% 05/01/2016................ 50,000 50,736 5.25% 05/01/2017................ 50,000 50,391 King County Washington Public Hospital District #4 Snoqualmie Valley Hospital (General Obligation) 7.00% 12/01/2011................ 150,000 156,189 Pierce County Washington Housing Authority (Revenue) 5.40% 12/01/2013................ 100,000 96,851 Port of Grays Harbor Washington (Revenue) (AMT) 6.375% 12/01/2014............... 150,000 164,001 Seattle Washington Municipal Light & Power (Revenue) 6.00% 10/01/2016................ 150,000 164,763 Shelton Washington Water & Sewer (Revenue) 5.25% 12/01/2018................ 50,000 50,341 Tacoma Solid Waste Series B (Pre-Refunded) 6.00% 12/01/2009................ 15,000 17,292
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PRINCIPAL AMOUNT VALUE Tacoma Solid Waste Series B Unrefunded Balance (Insured Revenue) 6.00% 12/01/2009................ $ 85,000 $ 97,402 Thurston County Washington School District #401 Rochester (General Obligation) 4.80% 12/01/2007................ 55,000 55,311 Toppenish Washington (General Obligation) 4.60% 12/01/2006................ 65,000 68,825 University of Washington Educational Research Properties Lease 4225 Roosevelt Project Series A (Revenue) 5.375% 06/01/2029............... 100,000 99,377 Washington State Certificates Participation Department General Administration 5.40% 07/01/2013................ 100,000 106,211 Washington State Health Care Facilities Authority Grays Harbor Community Hospital (Revenue) 5.70% 07/01/2016................ 200,000 208,606 Washington State Public Power Supply System Nuclear Project #2 Refunding Series A (Revenue) 5.00% 07/01/2011................ 50,000 52,422 Nuclear Project #3 Capital Appreciation Refunding Series B (Revenue) 0.00% 07/01/2012................ 145,000 91,051 Yakima County Washington School District #119 Selah (Insured General Obligation) 5.00% 12/01/2006................ 10,000 10,838 --------------- 1,540,607 --------------- WISCONSIN (2.3%) Door County Wisconsin Corporate Purpose Series A (Insured General Obligation) 5.00% 09/01/2013................ 300,000 316,536 --------------- WYOMING (0.8%) Wyoming Municipal Power Agency Power Supply Refunding Series 1998 (Insured Revenue) 5.25% 01/01/2011................ 100,000 107,616 --------------- Total Municipal Bonds (Cost $12,833,789)................ 13,272,564 ---------------
See Accompanying Notes to Financial Statements 77 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
COLUMBIA NATIONAL MUNICIPAL BOND FUND (CONT.) JUNE 30, 2002 (UNAUDITED) PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- TAX EXEMPT MONEY MARKET INVESTMENT (3.9%) SEI Tax Exempt Trust (Cost $534,250)................. $ 534,250 $ 534,250 --------------- TOTAL INVESTMENTS (100.7%) (Cost $13,368,039).................. 13,806,814 OTHER ASSETS LESS LIABILITIES (-0.7%)............................. (94,981) --------------- NET ASSETS (100.0%).................. $ 13,711,833 ===============
+ This security purchased on when-issued basis. ++ A portion of this security was segregated at the custodian to cover a when-issued security.
COLUMBIA OREGON MUNICIPAL BOND FUND JUNE 30, 2002 (UNAUDITED) PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- GENERAL OBLIGATION BONDS (36.9%) STATE OF OREGON GENERAL OBLIGATION (5.3%) Board of Higher Education Deferred Interest Series A 0.00% 08/01/2014................ $ 490,000 $ 280,628 0.00% 08/01/2017................ 1,050,000 502,509 Refunding Series B 6.25% 10/15/2012................ 740,000 748,910 Elderly & Disabled Housing Refunding Series B 6.25% 08/01/2013................ 1,000,000 1,023,230 Veterans Welfare Series 80A 5.70% 10/01/2032................ 5,435,000 5,641,258 Board of Higher Education Series A 5.25% 08/01/2016................ 1,330,000 1,399,931 5.25% 08/01/2018................ 3,390,000 3,519,600 Elderly & Disabled Housing Series B 4.95% 08/01/2020................ 1,000,000 996,340 Pollution Control Series C 5.90% 06/01/2014................ 400,000 407,192 Veteran's Welfare 9.00% 04/01/2004................ 280,000 312,651 5.85% 10/01/2015................ 785,000 820,529 7.25% 01/01/2007................ 1,530,000 1,786,963 7.30% 01/01/2008................ 445,000 527,815 7.30% 07/01/2008................ 1,170,000 1,405,673 8.00% 01/01/2008................ 1,275,000 1,554,365 8.00% 07/01/2008................ 580,000 717,535
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PRINCIPAL AMOUNT VALUE 8.25% 07/01/2005................ $ 545,000 $ 632,304 8.25% 07/01/2007................ 540,000 662,596 9.20% 04/01/2007................ 2,390,000 3,006,190 9.20% 10/01/2008................ 385,000 505,355 --------------- 26,451,574 --------------- GENERAL OBLIGATION (16.3%) Aurora 5.60% 06/01/2024................ 1,205,000 1,197,408 Canyonville South Umpqua Rural Fire District 5.40% 07/01/2031................ 610,000 609,237 Clackamas & Washington Counties School District #3JT West Linn- Wilsonville 5.875% 10/01/2009............... 2,550,000 2,594,038 Clackamas County School District #086 6.00% 06/15/2016................ 2,350,000 2,603,588 Clackamas County School District #7J Lake Oswego Series A 5.70% 06/15/2010................ 2,735,000 2,894,068 Lake Oswego 5.375% 06/01/2015............... 2,450,000 2,623,239 5.375% 06/01/2016............... 1,295,000 1,373,801 5.375% 06/01/2017............... 2,535,000 2,668,341 Clackamas County School District #108 5.375% 06/15/2015............... 1,055,000 1,133,112 Clatsop County School District #001 Astoria 5.50% 06/15/2019................ 1,000,000 1,045,210 Coos Bay 4.90% 09/01/2007................ 2,800,000 3,012,884 Douglas County School District #4 Roseburg 4.90% 12/15/2011................ 415,000 441,643 5.00% 12/15/2012................ 500,000 531,965 5.15% 12/15/2014................ 540,000 571,153 Eugene Public Safety Facilities 5.50% 06/01/2010................ 850,000 900,125 5.625% 06/01/2013............... 1,295,000 1,367,080 Jackson County School District #009 Eagle Point 5.625% 06/15/2015............... 1,920,000 2,095,949 Lane & Douglas Counties School District #45J3 6.00% 06/15/2014................ 1,000,000 1,119,320 6.00% 06/15/2015................ 1,100,000 1,225,741 6.00% 06/15/2016................ 1,230,000 1,359,248 6.00% 06/15/2017................ 1,375,000 1,511,744
See Accompanying Notes to Financial Statements 78 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- Lane County School District #4J Eugene Refunding 5.25% 07/01/2013................ $ 1,000,000 $ 1,088,610 Metro Washington Park Zoo Series A 5.30% 01/15/2011................ 1,000,000 1,052,990 Multnomah County Refunding 4.30% 10/01/2011................ 10,000 10,151 Multnomah-Clackamas Counties School District #10JT Gresham 5.25% 06/01/2017................ 1,620,000 1,654,328 Port of Portland Series A 0.00% 03/01/2007................ 3,010,000 2,562,624 Portland Community College District 0.00% 07/01/2007................ 2,025,000 1,704,463 Portland Community College District Series A 5.375% 06/01/2016............... 2,705,000 2,879,824 5.375% 06/01/2017............... 2,540,000 2,686,914 5.375% 06/01/2014............... 1,925,000 2,077,325 Portland Ltd. Tax Series B 0.00% 06/01/2020................ 4,000,000 1,570,560 0.00% 06/01/2012................ 1,750,000 1,126,965 0.00% 06/01/2013................ 1,500,000 911,355 0.00% 06/01/2014................ 1,000,000 574,440 0.00% 06/01/2016................ 2,500,000 1,273,500 0.00% 06/01/2018................ 4,000,000 1,795,560 0.00% 06/01/2019................ 4,000,000 1,682,240 Portland Parks Refunding Series A 5.00% 06/01/2015................ 3,950,000 4,104,485 Portland Public Improvements Series A 5.75% 06/01/2014................ 965,000 1,005,675 Salem-Keizer School District #24J 5.00% 06/01/2019................ 1,500,000 1,512,900 Washington & Clackamas Counties School District #23J Tigard 0.00% 06/15/2018................ 2,700,000 1,196,505 School District #23J Tigard Deferred Interest Series A 0.00% 06/01/2010................ 1,520,000 1,082,027 School District #23J Tigard Refunding 5.40% 01/01/2010................ 1,720,000 1,776,691 Washington County 5.50% 06/01/2016................ 2,785,000 2,983,988 Washington County Refunding Criminal Justice Facilities 5.00% 12/01/2010................ 1,400,000 1,476,874
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PRINCIPAL AMOUNT VALUE Washington County School District #48J Beaverton 5.125% 01/01/2014............... $ 2,000,000 $ 2,112,420 5.125% 01/01/2017............... 1,820,000 1,880,406 5.125% 01/01/2018............... 2,260,000 2,317,427 Washington, Multnomah & Yamhill Counties School District #1J 5.25% 06/01/2014................ 500,000 527,190 5.00% 11/01/2013................ 1,375,000 1,472,831 --------------- 80,980,162 --------------- INSURED GENERAL OBLIGATION (15.3%) Chemeketa Community College District Series B 5.60% 06/01/2014................ 1,180,000 1,245,502 Clackamas & Washington Counties School District #3JT 5.00% 06/01/2016................ 700,000 714,056 Clackamas Community College 5.25% 06/15/2018................ 1,560,000 1,622,416 5.25% 06/15/2015................ 1,500,000 1,594,995 Clackamas County School District #12 North Clackamas 5.25% 06/01/2011................ 1,000,000 1,078,550 5.25% 06/01/2015................ 2,750,000 2,889,480 Columbia County School District #502 Deferred Interest 0.00% 06/01/2012................ 1,530,000 986,253 0.00% 06/01/2013................ 1,685,000 1,030,344 0.00% 06/01/2014................ 1,025,000 591,558 0.00% 06/01/2007................ 260,000 219,682 Coos County School District #13 North Bend 5.50% 06/15/2015................ 1,765,000 1,929,745 Deschutes County School District #1 Series A 5.50% 06/15/2018................ 1,000,000 1,061,880 Jefferson County School District #509J Madras School District 5.25% 06/15/2018................ 1,075,000 1,121,924 Josephine County School District #7 Grants Pass 5.70% 06/01/2013................ 2,000,000 2,133,880 Lane & Douglas Counties School District #97J 5.30% 06/15/2015................ 1,155,000 1,215,903 School District #45J3 6.00% 06/15/2013................ 1,610,000 1,812,538
See Accompanying Notes to Financial Statements 79 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
COLUMBIA OREGON MUNICIPAL BOND FUND (CONT.) JUNE 30, 2002 (UNAUDITED) PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- Lane County School District #19 Springfield Refunding 6.00% 10/15/2012................ $ 1,740,000 $ 2,025,551 6.00% 10/15/2014................ 1,310,000 1,524,512 #52 Bethel 6.25% 12/01/2007................ 580,000 653,782 6.40% 12/01/2009................ 750,000 844,740 Lincoln County School District 5.60% 06/15/2010................ 3,480,000 3,857,267 Linn Benton Community College 0.00% 06/15/2013................ 1,000,000 610,410 0.00% 06/15/2014................ 1,000,000 574,750 0.00% 06/15/2015................ 1,000,000 543,220 0.00% 06/15/2015................ 1,000,000 541,160 0.00% 06/15/2016................ 1,000,000 508,440 Linn County Community School District #9 Lebanon 0.00% 06/15/2021................ 2,000,000 1,893,120 0.00% 06/15/2015................ 710,000 693,926 Marion County Certificates of Participation Courthouse Square Project Series A 4.40% 06/01/2010................ 430,000 445,265 Marion County School District #103C Woodburn Series B 0.00% 11/01/2006................ 2,000,000 1,745,960 0.00% 11/01/2007................ 2,000,000 1,666,040 0.00% 11/01/2009................ 2,500,000 1,867,125 0.00% 11/01/2011................ 2,210,000 1,483,330 Multnomah County School District #7 Reynolds 5.00% 06/15/2018................ 1,000,000 1,017,510 Multnomah-Clackamas Counties Centennial School District #28-302 5.375% 06/15/2016............... 2,055,000 2,188,328 5.375% 06/15/2017............... 2,280,000 2,412,400 5.375% 06/15/2018............... 2,490,000 2,615,894 Northern Oregon Corrections 5.25% 09/15/2012................ 1,000,000 1,055,890 5.30% 09/15/2013................ 1,000,000 1,051,980 Salem-Keizer School District #24J 5.00% 06/01/2016................ 1,455,000 1,494,183 5.00% 06/01/2015................ 1,000,000 1,032,930
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PRINCIPAL AMOUNT VALUE State Department Administrative Services Certificate of Participation Refunding Series A 4.50% 05/01/2012................ $ 1,020,000 $ 1,051,273 5.00% 05/01/2013................ 4,240,000 4,473,242 5.00% 05/01/2014................ 1,000,000 1,047,510 Tillamook County 5.70% 01/15/2016................ 700,000 737,912 Tillamook County Refunding 4.60% 01/15/2015................ 810,000 829,173 Washington & Clackamas Counties School District #23J Tigard 5.375% 06/15/2020............... 2,435,000 2,531,840 5.375% 06/15/2017............... 1,500,000 1,594,995 Washington County School District #088J Sherwood Unrefunded 6.10% 06/01/2012................ 185,000 200,597 District #15 Forest Grove 5.25% 06/01/2010................ 1,000,000 1,097,710 5.25% 08/01/2010................ 1,150,000 1,232,455 5.375% 06/15/2013............... 2,070,000 2,255,327 5.375% 06/15/2015............... 2,515,000 2,701,211 District #48J Beaverton 5.10% 06/01/2012................ 500,000 531,660 Yamhill County School District #40 6.00% 06/01/2009................ 500,000 571,870 --------------- 76,453,194 --------------- Total General Obligation Bonds (Cost $176,503,237)................. 183,884,930 --------------- REVENUE BONDS (56.5%) OREGON REVENUE (37.7%) Albany Hospital Facility Authority Mennonite Home 5.625% 10/01/2017............... 635,000 587,629 Bend Municipal Airport PJ Series B (AMT) 5.375% 06/01/2013............... 150,000 158,257 Benton County Hospital Facilities Authority Refunding Samaritan Health Services Project 4.30% 10/01/2006................ 230,000 237,808 4.40% 10/01/2007................ 220,000 227,038 4.80% 10/01/2011................ 245,000 252,972 5.20% 10/01/2017................ 2,255,000 2,268,733 Clackamas County Hospital Facility Authority Willamette View, Inc. Project Series A 6.85% 11/01/2015................ 1,580,000 1,681,215
See Accompanying Notes to Financial Statements 80 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- Authority Legacy Health System 5.375% 02/15/2012............... $ 3,135,000 $ 3,319,244 5.50% 02/15/2014................ 2,385,000 2,501,460 5.00% 02/15/2015................ 1,400,000 1,410,724 5.50% 02/15/2013................ 5,450,000 5,753,347 5.00% 02/15/2016................ 1,000,000 1,005,460 4.60% 05/01/2010................ 885,000 900,815 Authority Robison Jewish Home Project 6.25% 10/01/2021................ 1,650,000 1,640,199 Authority GNMA Collateral Jennings Lodge 7.50% 10/20/2031................ 1,030,000 1,036,952 Authority Refunding Odd Fellows Home Series A 5.50% 09/15/2008................ 1,380,000 1,359,341 5.875% 09/15/2021............... 2,105,000 1,851,453 5.70% 09/15/2013................ 600,000 566,592 Authority Refunding Willamette View, Inc. Project 6.00% 11/01/2008................ 670,000 678,462 Authority Willamette Falls Hospital Project 5.75% 04/01/2014................ 1,005,000 1,011,321 6.00% 04/01/2019................ 1,750,000 1,758,452 Kaiser Permanente Series A 5.375% 04/01/2014............... 7,085,000 7,358,835 Authority Legacy Health System Refunding 5.00% 05/01/2006................ 2,285,000 2,418,444 5.25% 05/01/2021................ 1,500,000 1,503,000 5.75% 05/01/2016................ 1,500,000 1,589,835 Clackamas County Housing Authority Multifamily Housing Easton Ridge Series A 5.80% 12/01/2016................ 2,255,000 2,328,220 Clatsop Care Center Health District Senior Housing 6.875% 08/01/2028............... 500,000 502,865 Deschutes County Hospital Facility Authority 5.75% 01/01/2009................ 1,670,000 1,740,507 Deschutes County Hospital Facilities Authority Cascade Health Services, Inc. 5.60% 01/01/2027................ 5,550,000 5,597,175 5.50% 01/01/2022................ 2,000,000 2,015,620 5.60% 01/01/2032................ 3,000,000 3,014,460 Deschutes Valley Water District 5.875% 09/01/2005............... 3,010,000 3,272,773
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PRINCIPAL AMOUNT VALUE Eugene Airport Refunding (AMT) 5.50% 05/01/2005................ $ 260,000 $ 273,083 5.65% 05/01/2006................ 240,000 255,576 5.65% 05/01/2007................ 555,000 591,858 5.70% 05/01/2008................ 515,000 550,319 Gresham Stormwater 6.10% 10/01/2009................ 1,115,000 1,172,545 Hillsboro Hospital Facility Authority Tuality Healthcare 5.75% 10/01/2012................ 6,060,000 6,151,324 Lebanon Urban Renewal Agency 5.625% 06/01/2019............... 1,000,000 1,006,370 Lebanon Wastewater Refunding 5.75% 06/01/2011................ 1,225,000 1,266,344 Multnomah County Educational Facilities University of Portland Project 5.70% 04/01/2015................ 1,000,000 1,051,680 Myrtle Point Water 6.00% 12/01/2020................ 510,000 518,420 North Clackamas Parks & Recreation District Facilities 5.70% 04/01/2013................ 2,920,000 3,228,323 Northern Wasco County People's Utility District Electric 0.00% 02/01/2006................ 610,000 525,375 0.00% 02/01/2007................ 585,000 468,018 0.00% 02/01/2008................ 610,000 452,559 0.00% 02/01/2011................ 500,000 298,470 Oregon Department of Transportation Highway User Tax Series A 5.125% 11/15/2026............... 300,000 299,400 Oregon Health, Housing, Educational & Cultural Facilities Authority Linfield College Project Series A 5.50% 10/01/2018................ 1,000,000 1,006,570 4.55% 10/01/2008................ 525,000 536,340 4.65% 10/01/2009................ 555,000 563,142 Goodwill Industries Lane County Series A 6.65% 11/15/2022................ 4,050,000 4,049,716 Reed College Project Series A 5.30% 07/01/2011................ 500,000 529,260 Authority/Aquarium 4.75% 10/01/2008................ 1,550,000 1,436,385 4.90% 10/01/2009................ 670,000 618,785
See Accompanying Notes to Financial Statements 81 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
COLUMBIA OREGON MUNICIPAL BOND FUND (CONT.) JUNE 30, 2002 (UNAUDITED) PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- Oregon Housing & Community Services Department Mortgage Single Family Program Series A (AMT) 6.20% 07/01/2027................ $ 3,265,000 $ 3,367,554 Department Single Family Mortgage Program Series D 6.70% 07/01/2013................ 1,000,000 1,011,460 Department Housing Finance Assisted Insured Multi-Unit B 6.80% 07/01/2013................ 8,360,000 8,505,798 Department Mortgage Single Family Program Series F (AMT) 5.65% 07/01/2028................ 1,205,000 1,216,761 Department Mortgage Single Family Series F MBIA-IBC (AMT) 5.65% 07/01/2028................ 900,000 908,784 Department Mortgage Single Family Project Series E 5.375% 07/01/2021............... 3,905,000 3,978,883 Department Mortgage Single Family Program Series A 4.85% 07/01/2010................ 305,000 318,115 Single Family Mortgage Program Series L (AMT) 5.90% 07/01/2031................ 4,205,000 4,271,061 Oregon Housing & Community Services Mountain Shadows Apts. B-1 6.25% 12/01/2005................ 4,000,000 4,124,480 Oregon Housing Financial 5.80% 07/01/2009................ 285,000 285,248 Oregon State Economic Development Dove Lewis 24 Hour Emergency Animal Hospital 7.00% 12/01/2019................ 1,470,000 1,537,370 Oregon State Health, Housing, Educational and Cultural Facilities Authority St. Anthony Village Housing Series A (AMT) 7.25% 06/01/2028................ 1,400,000 1,403,878 Oregon State Housing & Community Services Department Multifamily Housing Series B (AMT) 6.00% 07/01/2031................ 6,935,000 7,117,876
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PRINCIPAL AMOUNT VALUE Department Single Family Mortgage Program Series L 6.05% 07/01/2020................ $ 2,485,000 $ 2,580,971 Department Mortgage Series M (AMT) 5.80% 07/01/2012................ 795,000 857,415 Department Single Family Mortgage Program Series H (AMT) 5.50% 07/01/2017................ 1,930,000 1,957,927 Single Family Mortgage Series G (AMT) 5.70% 07/01/2032................ 1,250,000 1,258,350 Single Family Mortgage PG Series E 5.80% 07/01/2014................ 1,055,000 1,112,603 Department Single Family Housing Program Series B (AMT) 5.25% 07/01/2030................ 960,000 932,582 Department Single Family Mortgage Program Series J 5.15% 07/01/2024................ 2,845,000 2,775,525 Department Mortgage Single Family Series E 5.70% 07/01/2012................ 1,180,000 1,271,568 6.00% 07/01/2020................ 2,935,000 3,049,670 Department Single Family Mortgage Program Series Q 4.70% 07/01/2015................ 820,000 810,578 4.90% 07/01/2017................ 805,000 785,793 Port Morrow 6.70% 06/01/2020................ 2,000,000 2,011,880 Port of St. Helens 5.60% 08/01/2014................ 315,000 319,344 5.75% 08/01/2019................ 425,000 431,320 Port of St. Helens Pollution Control Portland General Electric Co. Series A 4.80% 04/01/2010................ 5,195,000 4,668,331 Series B 4.80% 06/01/2010................ 3,500,000 3,139,570 Portland Housing Authority Multifamily Housing Senior Lien Civic Apartments Series A 5.60% 01/01/2018................ 1,240,000 1,275,352 Portland Housing Authority Refunding Pooled Housing Series A 4.50% 01/01/2009................ 660,000 681,760 Portland Hydroelectric Power 6.80% 10/01/2004................ 465,000 466,707
See Accompanying Notes to Financial Statements 82 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- Powell Valley Water District 6.00% 02/01/2015................ $ 620,000 $ 644,899 Prineville Sewer First Lien 6.50% 07/01/2004................ 385,000 412,366 Redmond Urban Renewal Agency Downtown Area B 5.65% 06/01/2013................ 720,000 733,838 5.85% 06/01/2019................ 785,000 800,873 Refunding South Airport Industrial Area A 5.70% 06/01/2019................ 650,000 644,157 Reedsport Water 7.00% 10/01/2014................ 520,000 545,485 Salem Hospital Facility Authority 5.00% 08/15/2018................ 2,000,000 1,968,760 5.25% 08/15/2014................ 2,900,000 2,999,934 Salem Hospital Facility Authority Capital Manor, Inc. 7.50% 12/01/2024................ 905,000 938,992 Sheridan Water 6.20% 05/01/2015................ 625,000 662,288 6.45% 05/01/2020................ 520,000 542,651 Sheridan Water Refunding 5.35% 04/01/2018................ 300,000 302,106 South Fork Water Board First Lien 5.45% 02/01/2014................ 1,300,000 1,326,689 State of Oregon French American International School Project Series A 6.25% 04/01/2027................ 5,465,000 5,527,902 Umatilla County Hospital Facility Authority Catholic Health Initiatives Series A 6.00% 12/01/2030................ 4,825,000 5,060,605 5.75% 12/01/2020................ 530,000 548,460 Veneta Urban Renewal Agency 5.375% 02/15/2016............... 700,000 711,396 5.625% 02/15/2021............... 1,100,000 1,102,640 Washington County Housing Authority Affordable Housing Series A 6.00% 07/01/2020................ 2,000,000 1,971,880 Multifamily Bethany Meadows Project (AMT) 6.25% 08/01/2010................ 850,000 850,774 Affordable Housing Series B 5.75% 07/01/2023................ 340,000 326,016
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PRINCIPAL AMOUNT VALUE Affordable Housing Pool Series A 5.75% 07/01/2023................ $ 1,000,000 $ 964,600 6.00% 07/01/2023................ 1,745,000 1,704,324 --------------- 188,125,219 --------------- INSURED REVENUE (18.8%) Clackamas County Hospital Facility Legacy Health System MBIA IBC 5.50% 02/15/2013................ 495,000 535,684 Emerald Peoples Utilities District 7.20% 11/01/2006................ 630,000 739,173 7.35% 11/01/2010................ 2,160,000 2,684,426 7.35% 11/01/2011................ 2,000,000 2,511,140 7.35% 11/01/2012................ 2,490,000 3,157,669 7.35% 11/01/2013................ 2,675,000 3,410,866 Eugene Electric Utilities System Series B 5.00% 08/01/2023................ 525,000 524,984 4.55% 08/01/2010................ 600,000 600,312 4.65% 08/01/2011................ 375,000 375,184 5.00% 08/01/2018................ 1,000,000 1,000,140 Eugene Electric Utility System Refunding Series B 5.25% 08/01/2013................ 1,040,000 1,124,458 Marion County Certificates of Participation Courthouse Square Project Series A 4.60% 06/01/2012................ 355,000 366,861 Medford Hospital Facilities Authority Asante Health System Series A 5.25% 08/15/2008................ 1,645,000 1,799,202 5.25% 08/15/2011................ 800,000 858,128 5.25% 08/15/2010................ 1,500,000 1,620,015 Multnomah County Educational Facilities Refunding University of Portland Project 5.00% 04/01/2011................ 1,150,000 1,220,920 5.75% 04/01/2010................ 2,000,000 2,204,200 Ontario Catholic Health Holy Rosary Medical Center 5.50% 11/15/2012................ 1,500,000 1,598,850 Oregon Department of Administrative Services Certificates of Participation Series A 5.30% 05/01/2008................ 750,000 818,002 Series B 5.00% 11/01/2013................ 1,000,000 1,045,570
See Accompanying Notes to Financial Statements 83 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
COLUMBIA OREGON MUNICIPAL BOND FUND (CONT.) JUNE 30, 2002 (UNAUDITED) PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- Series C 5.80% 03/01/2015................ $ 840,000 $ 858,194 Oregon Economic Community Development Department Series A 5.375% 01/01/2011............... 1,105,000 1,205,688 Oregon Health, Housing, Educational & Cultural Facilities Authority Reed College Project Series A 5.10% 07/01/2010................ 900,000 979,533 Lewis & Clark College 6.00% 10/01/2013................ 965,000 1,052,911 Oregon Health Sciences University Capital Appreciation Insured Series A 0.00% 07/01/2021................ 12,285,000 4,524,688 Oregon Health Sciences University Series A 0.00% 07/01/2015................ 4,325,000 2,344,539 0.00% 07/01/2009................ 1,530,000 1,157,889 0.00% 07/01/2012................ 1,315,000 848,688 0.00% 07/01/2014................ 2,495,000 1,434,425 Oregon Housing & Community Services Department Single Family Mortgage Project Series J (AMT) 5.75% 07/01/2029................ 8,770,000 8,885,676 Oregon State Department Administrative Services Lottery Education Project 5.25% 04/01/2013................ 1,500,000 1,605,600 Lottery Education Series A 5.25% 04/01/2011................ 4,000,000 4,338,160 5.00% 04/01/2014................ 2,705,000 2,846,309 Port of Portland International Airport Series 11 (AMT) 5.625% 07/01/2013............... 1,000,000 1,054,240 Series 12C (AMT) 4.75% 07/01/2010................ 2,900,000 2,988,595 5.00% 07/01/2014................ 1,750,000 1,783,968 5.00% 07/01/2013................ 1,000,000 1,025,140 Refunding Series 12B 5.25% 07/01/2012................ 1,000,000 1,061,700 Portland Arena Gas Tax 0.00% 06/01/2016................ 1,100,000 493,735 0.00% 06/01/2017................ 2,320,000 971,106
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PRINCIPAL AMOUNT VALUE Portland Gas Tax Series A 5.80% 06/01/2016................ $ 1,625,000 $ 1,729,260 Portland Housing Authority Multifamily Housing Lovejoy Station Apartments Project (AMT) 5.90% 07/01/2023................ 1,000,000 1,038,160 Portland Urban Renewal & Redevelopment South Park Blocks Series A 5.75% 06/15/2019................ 2,580,000 2,793,959 5.75% 06/15/2017................ 2,065,000 2,257,933 Salem Water & Sewer 5.30% 06/01/2015................ 1,500,000 1,590,525 Tri-County Metropolitan Transportation District Series 1 5.40% 06/01/2019................ 4,200,000 4,290,720 Tualatin Hills Park & Recreation District 5.75% 03/01/2014................ 990,000 1,118,294 Washington County Housing Authority Multifamily Tualatin Meadows (AMT) 5.90% 11/01/2018................ 995,000 1,033,835 Washington County Unified Sewer Agency 5.50% 10/01/2016................ 1,250,000 1,309,463 Series A 0.00% 10/01/2007................ 4,835,000 4,039,111 Western Lane Hospital District Facility Authority Refunding Sisters St. Joseph Peace 5.625% 08/01/2007............... 2,460,000 2,648,830 --------------- 93,506,658 --------------- Total Revenue Bonds (Cost $273,198,686)................. 281,631,877 --------------- PRE-REFUNDED BONDS (0.1%) Oregon City Sewer 6.50% 10/01/2007 (Cost $496,767)................. 500,000 549,865 --------------- OTHER BONDS (3.1%) Hood River Urban Renewal Agency 6.25% 12/15/2011................ 1,250,000 1,352,287 Lebanon Urban Renewal Agency 6.00% 06/01/2020................ 1,580,000 1,604,759 5.75% 06/01/2015................ 1,120,000 1,148,582
See Accompanying Notes to Financial Statements 84 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- Lebanon Special Obligation Refunding Lease Water 5.40% 10/01/2013................ $ 755,000 $ 775,038 Medford Urban Renewal 5.875% 09/01/2010............... 500,000 531,405 Multnomah County Certificate of Participation 4.55% 08/01/2010................ 1,000,000 1,037,960 Oregon State Department of Administrative Services Certificates of Participation Refunding Series B 5.25% 05/01/2010................ 840,000 921,304 Portland Airport Way Urban Renewal & Redevelopment Tax Increment Series C 5.90% 06/01/2006................ 860,000 880,055 Portland Urban Renewal and Redevelopment Convention Center Series A 5.75% 06/15/2018................ 2,050,000 2,234,316 5.75% 06/15/2017................ 1,500,000 1,640,145 Unrefunded Balance Series L 6.40% 06/01/2008................ 1,695,000 1,717,730 Seaside Urban Renewal Agency Greater Seaside Urban Renewal 5.25% 06/01/2015................ 1,000,000 1,003,840 Wilsonville Limited Tax Improvement 5.00% 12/01/2020................ 540,000 542,851 --------------- Total Other Bonds (Cost $14,766,797).................. 15,390,272 --------------- U.S. TERRITORIES (0.6%) Guam Housing Corporation Single Family Mortgage-Backed Securities Series A (AMT) 5.75% 09/01/2031................ 175,000 178,483 Puerto Rico Housing Finance Corp. Multi Family Mortgage Portfolio A-1 7.50% 04/01/2022................ 1,230,000 1,231,242 Virgin Islands Public Finance Authority Unrefunded Balance Series A 7.30% 10/01/2018................ 1,185,000 1,510,235 --------------- Total U.S. Territories Bonds (Cost $2,789,799)................... 2,919,960 ---------------
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PRINCIPAL AMOUNT VALUE TAX EXEMPT MONEY MARKET INVESTMENT (1.7%) SEI Tax Exempt Trust (Cost $8,684,019)................. $ 8,684,019 $ 8,684,019 --------------- TOTAL INVESTMENTS (98.9%) (Cost $476,439,305)................. 493,060,923 OTHER ASSETS LESS LIABILITIES (1.1%).............................. 5,577,967 --------------- NET ASSETS (100.0%).................. $ 498,638,890 ===============
COLUMBIA HIGH YIELD FUND JUNE 30, 2002 (UNAUDITED) PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- CORPORATE NOTES & BONDS (91.6%) AEROSPACE (1.2%) L-3 Communications Corp. (144A) Senior Subordinated Notes 7.625% 06/15/2012............... $ 4,725,000 $ 4,739,766 --------------- AUTOMOTIVE/AUTO PARTS (6.6%) American Axle & Manufacturing, Inc. Senior Subordinated Notes 9.75% 03/01/2009................ 8,450,000 8,978,125 Dura Operating Corp. Senior Subordinated Notes, Series D 9.00% 05/01/2009................ 4,225,000 4,066,563 Ford Motor Credit Co. Notes 6.875% 02/01/2006............... 4,000,000 4,085,320 Lear Corp. Senior Notes, Series B 7.96% 05/15/2005................ 6,250,000 6,447,931 8.11% 05/15/2009................ 3,500,000 3,570,595 --------------- 27,148,534 --------------- BROADCASTING (0.6%) Radio One, Inc. Senior Subordinated Notes, Series B 8.875% 07/01/2011............... 2,635,000 2,667,937 --------------- CABLE TV (7.0%) Charter Communications Holdings L.L.C./Charter Communications Holdings Capital Corp. Senior Notes 10.75% 10/01/2009............... 3,000,000 2,070,000
See Accompanying Notes to Financial Statements 85 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
COLUMBIA HIGH YIELD FUND (CONT.) JUNE 30, 2002 (UNAUDITED) PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- Charter Communications Holdings L.L.C./Charter Communications Holding Capital Corp. Senior Discount Notes 0.00% 01/15/2005................ $ 5,250,000 $ 2,362,500 0.00% 01/15/2006................ 1,500,000 562,500 0.00% 04/01/2004................ 1,500,000 712,500 Charter Communications Holdings L.L.C./Charter Communications Holdings Capital Corp. (144A) Senior Notes 9.625% 11/15/2009............... 1,000,000 670,000 CSC Holdings, Inc. Senior Notes 7.875% 12/15/2007............... 5,750,000 4,629,095 Senior Notes, Series B 8.125% 07/15/2009............... 2,200,000 1,767,766 Senior Debentures, Series B 8.125% 08/15/2009............... 1,475,000 1,185,118 Senior Subordinated Debentures 9.875% 02/15/2013............... 1,000,000 745,000 Mediacom L.L.C./Mediacom Capital Corp. Senior Notes, Series B 8.50% 04/15/2008................ 2,000,000 1,680,000 Senior Notes 9.50% 01/15/2013................ 7,500,000 6,225,000 Rogers Cable, Inc. Notes 7.875% 05/01/2012............... 5,500,000 5,566,479 Rogers Communications, Inc. Senior Notes 8.875% 07/15/2007............... 1,000,000 910,000 --------------- 29,085,958 --------------- CAPITAL GOODS (3.9%) Kennametal, Inc. Senior Notes 7.20% 06/15/2012................ 6,815,000 6,812,887 United Rentals, Inc. Senior Subordinated Notes, Series B 9.50% 06/01/2008................ 1,500,000 1,530,000 8.80% 08/15/2008................ 3,175,000 3,159,125 Senior Notes, Series B 9.25% 01/15/2009................ 4,700,000 4,747,000 --------------- 16,249,012 ---------------
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PRINCIPAL AMOUNT VALUE CONSUMER PRODUCTS (6.2%) Hasbro, Inc. Senior Notes 8.50% 03/15/2006................ $ 2,650,000 $ 2,689,750 Notes 6.15% 07/15/2008................ 7,500,000 6,900,000 Pennzoil-Quaker State Co. Senior Notes 10.00% 11/01/2008............... 6,255,000 7,357,444 Scotts Co., The Senior Subordinated Notes 8.625% 01/15/2009............... 7,125,000 7,267,500 Scotts Co., The (144A) Senior Subordinated Notes 8.625% 01/15/2009............... 1,500,000 1,530,000 --------------- 25,744,694 --------------- DIVERSIFIED MEDIA (4.4%) Fox/Liberty Networks L.L.C. Senior Notes 8.875% 08/15/2007............... 8,225,000 8,389,500 Lamar Media Corp. Senior Subordinated Notes 9.625% 12/01/2006............... 2,250,000 2,323,125 9.25% 08/15/2007................ 1,000,000 1,030,000 8.625% 09/15/2007............... 6,195,000 6,380,850 --------------- 18,123,475 --------------- ELECTRIC (1.1%) Calpine Corp. Senior Notes 8.25% 08/15/2005................ 1,250,000 887,500 7.625% 04/15/2006............... 3,000,000 2,040,000 8.75% 07/15/2007................ 2,500,000 1,700,000 --------------- 4,627,500 --------------- ENERGY (5.8%) El Paso Energy Partners L.P. Senior Subordinated Notes, Series B 8.50% 06/01/2011................ 4,500,000 4,500,000 Pride International, Inc. Senior Notes 9.375% 05/01/2007............... 5,995,000 6,249,787 10.00% 06/01/2009............... 2,000,000 2,150,000 Vintage Petroleum, Inc. Senior Subordinated Notes 9.75% 06/30/2009................ 2,375,000 2,327,500
See Accompanying Notes to Financial Statements 86 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- XTO Energy, Inc. Senior Notes 7.50% 04/15/2012................ $ 8,375,000 $ 8,584,375 --------------- 23,811,662 --------------- ENVIRONMENTAL (2.3%) Allied Waste North America, Inc. Senior Subordinated Notes, Series B 10.00% 08/01/2009............... 9,250,000 9,088,125 Synagro Technologies, Inc. (144A) Senior Subordinated Notes 9.50% 04/01/2009................ 475,000 489,250 --------------- 9,577,375 --------------- FOOD & DRUG RETAIL (2.5%) Great Atlantic & Pacific Tea Co., Inc., The Notes 7.75% 04/15/2007................ 7,363,000 6,847,590 Winn-Dixie Stores, Inc. Senior Notes 8.875% 04/01/2008............... 3,600,000 3,618,000 --------------- 10,465,590 --------------- FOOD/BEVERAGE/TOBACCO (4.6%) Canandaigua Brands, Inc. Senior Subordinated Notes 8.625% 08/01/2006............... 4,100,000 4,305,000 8.50% 03/01/2009................ 4,850,000 4,995,500 Cott Beverages, Inc. Senior Subordinated Notes 8.00% 12/15/2011................ 9,450,000 9,591,750 --------------- 18,892,250 --------------- GAMING (8.2%) Harrah's Operating Co., Inc. Senior Subordinated Notes 7.875% 12/15/2005............... 2,750,000 2,832,500 Notes 7.125% 06/01/2007............... 3,595,000 3,784,050 International Game Technology Senior Notes 7.875% 05/15/2004............... 5,750,000 5,922,500 8.375% 05/15/2009............... 3,000,000 3,157,500 Park Place Entertainment Corp. Senior Subordinated Notes 9.375% 02/15/2007............... 8,500,000 8,903,750 8.875% 09/15/2008............... 1,000,000 1,030,000
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PRINCIPAL AMOUNT VALUE Station Casinos, Inc. Senior Subordinated Notes 9.75% 04/15/2007................ $ 2,250,000 $ 2,320,313 8.875% 12/01/2008............... 4,605,000 4,697,100 9.875% 07/01/2010............... 1,000,000 1,057,500 --------------- 33,705,213 --------------- HEALTH CARE (8.8%) AdvancePCS Senior Notes 8.50% 04/01/2008................ 6,450,000 6,691,875 AmerisourceBergen Corp. Senior Notes 8.125% 09/01/2008............... 9,000,000 9,247,500 HCA-The Healthcare Co. Notes 6.91% 06/15/2005................ 2,000,000 2,059,360 7.00% 07/01/2007................ 1,000,000 1,024,350 Omnicare, Inc. Senior Subordinated Notes, Series B 8.125% 03/15/2011............... 4,735,000 4,900,725 Select Medical Corp. Senior Subordinated Notes 9.50% 06/15/2009................ 8,500,000 8,627,500 Triad Hospitals, Inc. Senior Notes, Series B 8.75% 05/01/2009................ 3,450,000 3,588,000 --------------- 36,139,310 --------------- HOMEBUILDERS (6.7%) KB Home Senior Subordinated Notes 8.625% 12/15/2008............... 5,000,000 5,075,000 9.50% 02/15/2011................ 3,950,000 4,068,500 Technical Olympic USA, Inc. (144A) Senior Notes 9.00% 07/01/2010................ 9,000,000 8,977,500 Toll Corp. Senior Subordinated Notes 8.75% 11/15/2006................ 1,750,000 1,767,500 7.75% 09/15/2007................ 2,000,000 1,965,000 8.125% 02/01/2009............... 2,750,000 2,750,000 8.00% 05/01/2009................ 2,065,000 2,065,000 8.25% 02/01/2011................ 1,000,000 1,005,000 --------------- 27,673,500 ---------------
See Accompanying Notes to Financial Statements 87 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
COLUMBIA HIGH YIELD FUND (CONT.) JUNE 30, 2002 (UNAUDITED) PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- HOTELS (5.8%) Extended Stay America, Inc. Senior Subordinated Notes 9.15% 03/15/2008................ $ 2,450,000 $ 2,425,500 9.875% 06/15/2011............... 5,000,000 5,125,000 Host Marriott L.P. Senior Notes, Series E 8.375% 02/15/2006............... 1,500,000 1,477,500 Meristar Hospitality Operating Partnership/Finance Corp II (144A) Senior Notes 10.50% 06/15/2009............... 4,200,000 4,221,000 Meristar Hospitality Corp. Senior Notes 9.00% 01/15/2008................ 1,500,000 1,440,000 Starwood Hotels & Resorts Worldwide, Inc. (144A) Notes 7.875% 05/01/2012............... 9,450,000 9,308,250 --------------- 23,997,250 --------------- LEISURE (2.3%) Six Flags, Inc. Senior Notes 9.75% 06/15/2007................ 2,500,000 2,556,250 9.50% 02/01/2009................ 4,250,000 4,335,000 Senior Discount Notes 0.00% 04/01/2008................ 2,500,000 2,450,000 --------------- 9,341,250 --------------- NON FOOD & DRUG RETAIL (0.6%) United Stationers Supply Co. Senior Subordinated Notes 8.375% 04/15/2008............... 2,530,000 2,539,487 --------------- PACKAGING (4.2%) Ball Corp. Senior Notes 7.75% 08/01/2006................ 2,750,000 2,842,812 Senior Subordinated Notes 8.25% 08/01/2008................ 5,250,000 5,460,000
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PRINCIPAL AMOUNT VALUE Silgan Holdings, Inc. Senior Subordinated Debentures 9.00% 06/01/2009................ $ 7,863,000 $ 7,705,740 Silgan Holdings, Inc. (144A) Senior Subordinated Debentures 9.00% 06/01/2009................ 1,500,000 1,470,000 --------------- 17,478,552 --------------- RAILROADS (0.4%) Kansas City Southern Railway (144A) Senior Notes 7.50% 06/15/2009................ 1,655,000 1,665,344 --------------- REAL ESTATE INVESTMENT TRUSTS (REITS) (1.3%) Health Care REIT, Inc. Senior Notes 7.50% 08/15/2007................ 5,250,000 5,513,708 --------------- RESTAURANTS (2.4%) Yum! Brands Inc. Senior Notes 7.45% 05/15/2005................ 5,250,000 5,355,000 8.50% 04/15/2006................ 2,500,000 2,612,500 7.65% 05/15/2008................ 2,000,000 2,030,000 --------------- 9,997,500 --------------- SERVICES (2.2%) Iron Mountain, Inc. Senior Subordinated Notes 8.75% 09/30/2009................ 750,000 766,875 8.25% 07/01/2011................ 1,120,000 1,122,800 Senior Unsecured Notes 8.625% 04/01/2013............... 5,500,000 5,637,500 Pierce Leahy Corp. Senior Subordinated Notes 9.125% 07/15/2007............... 1,500,000 1,558,125 --------------- 9,085,300 --------------- SHIPPING (2.3%) Teekay Shipping Corp. Senior Notes 8.875% 07/15/2011............... 8,975,000 9,378,875 ---------------
See Accompanying Notes to Financial Statements 88 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- TEXTILES/APPAREL (0.2%) Russell Corp. (144A) Bonds 9.25% 05/01/2010................ $ 750,000 $ 776,250 --------------- Total Corporate Notes & Bonds (Cost $386,656,577)................. 378,425,292 --------------- REPURCHASE AGREEMENTS (5.7%) J.P. Morgan Securities, Inc. 1.85% dated 06/28/2002, due 07/01/2002 in the amount of $16,923,089. Collateralized by U.S. Treasury Bills due 07/05/2002 to 11/29/2014 U.S. Treasury Strips due 02/15/2010 to 08/15/2028........ 16,920,513 16,920,513 Merrill Lynch 1.80% dated 06/28/2002, due 07/01/2002 in the amount of $6,400,947. Collateralized by U.S. Treasury Strips due 08/15/2012 to 08/15/2017........ 6,400,000 6,400,000 --------------- Total Repurchase Agreements (Cost $23,320,513).................. 23,320,513 --------------- TOTAL INVESTMENTS (97.3%) (Cost $409,977,090)................. 401,745,805 OTHER ASSETS LESS LIABILITIES (2.7%).............................. 11,192,130 --------------- NET ASSETS (100.0%).................. $ 412,937,935 ===============
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COLUMBIA DAILY INCOME COMPANY JUNE 30, 2002 (UNAUDITED) PRINCIPAL AMOUNT VALUE U.S. GOVERNMENT SECURITIES (8.7%) Fannie Mae 1.755% 07/17/2002............... $ 40,000,000 $ 39,968,800 Federal Home Loan Bank 1.74% 08/21/2002................ 10,000,000 9,975,350 Freddie Mac 1.73% 07/02/2002................ 30,000,000 29,998,558
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PRINCIPAL AMOUNT VALUE *Sallie Mae 1.762% 12/19/2002............... $ 25,000,000 $ 25,000,000 --------------- Total U.S. Government Securities (Cost $104,942,708)................. 104,942,708 --------------- COMMERCIAL PAPER (91.2%) Abbey National North America LLC 1.77% 08/27/2002................ 10,000,000 9,971,975 1.75% 08/30/2002................ 32,000,000 31,906,667 Alcoa, Inc. 1.73% 07/24/2002................ 20,300,000 20,277,563 1.75% 08/01/2002................ 16,000,000 15,975,889 American Express Credit 1.76% 07/08/2002................ 11,000,000 10,996,236 1.78% 07/08/2002................ 20,000,000 19,993,078 1.76% 07/23/2002................ 13,000,000 12,986,018 1.75% 07/26/2002................ 9,000,000 8,989,062 American General Finance Corp. 1.76% 07/05/2002................ 25,000,000 24,995,111 American Honda Finance 1.76% 07/16/2002................ 13,678,000 13,667,969 1.76% 07/22/2002................ 7,600,000 7,592,197 1.76% 07/23/2002................ 24,000,000 23,974,187 Barclays U.S. Funding Corp. 1.78% 07/31/2002................ 14,000,000 13,979,233 1.80% 08/13/2002................ 19,000,000 18,959,150 1.795% 08/28/2002............... 11,300,000 11,267,321 Becton Dickinson & Co. 1.79% 07/25/2002................ 10,200,000 10,187,828 1.76% 08/05/2002................ 15,300,000 15,273,820 1.75% 09/17/2002................ 14,260,000 14,205,931 Caterpillar Financial Services Corp. 1.75% 07/10/2002................ 20,000,000 19,991,250 1.74% 08/23/2002................ 20,000,000 19,948,767 Chevron UK Investment plc 1.78% 07/16/2002................ 20,000,000 19,985,167 1.78% 08/07/2002................ 24,000,000 23,956,093 Citicorp 1.77% 07/03/2002................ 11,000,000 10,998,918 1.78% 07/12/2002................ 11,000,000 10,994,017 1.77% 08/16/2002................ 14,000,000 13,968,337 Coca-Cola Co. 1.75% 07/16/2002................ 7,000,000 6,994,896
See Accompanying Notes to Financial Statements 89 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
COLUMBIA DAILY INCOME COMPANY (CONT.) JUNE 30, 2002 (UNAUDITED) PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- Deutsche Bank Financial, Inc. 1.775% 07/18/2002............... $ 25,000,000 $ 24,979,045 1.775% 08/02/2002............... 13,000,000 12,979,489 1.77% 09/12/2002................ 3,000,000 2,989,232 Dresdner U.S. Finance, Inc. 1.78% 07/02/2002................ 20,000,000 19,999,011 1.77% 07/12/2002................ 23,000,000 22,987,561 DuPont, E.I. de Nemours Co. 1.75% 07/09/2002................ 23,900,000 23,890,706 1.73% 07/25/2002................ 8,000,000 7,990,773 Exxon Asset Management 1.74% 07/19/2002................ 12,600,000 12,589,038 General Electric Capital Corp. 1.78% 07/08/2002................ 10,000,000 9,996,539 1.78% 07/24/2002................ 10,000,000 9,988,628 General Electric Capital Services 1.77% 08/14/2002................ 8,000,000 7,982,693 1.78% 09/23/2002................ 14,000,000 13,941,853 Goldman Sachs Group, Inc. 1.77% 07/29/2002................ 12,000,000 11,983,480 1.77% 08/22/2002................ 24,500,000 24,437,362 1.77% 08/23/2002................ 5,800,000 5,784,886 Household Finance Corp. 1.78% 08/08/2002................ 14,000,000 13,973,696 1.77% 08/09/2002................ 18,000,000 17,965,485 1.76% 08/12/2002................ 10,000,000 9,979,467 Hubbell, Inc. 1.86% 07/15/2002................ 10,300,000 10,292,550 1.87% 07/15/2002................ 16,700,000 16,687,855 IBM Corp. 1.75% 08/01/2002................ 9,000,000 8,986,437 IBM Credit Corp. 1.77% 07/11/2002................ 33,000,000 32,983,775 J.P. Morgan Chase & Co. 1.81% 08/13/2002................ 24,000,000 23,948,113 1.77% 09/27/2002................ 10,000,000 9,956,733 McGraw-Hill Cos 1.75% 08/22/2002................ 15,000,000 14,962,083 1.74% 09/26/2002................ 8,100,000 8,065,939 1.74% 09/27/2002................ 12,300,000 12,247,684
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PRINCIPAL AMOUNT VALUE Merrill Lynch & Co. 1.74% 08/12/2002................ $ 10,000,000 $ 9,979,700 1.73% 08/14/2002................ 5,000,000 4,989,428 1.73% 08/19/2002................ 10,000,000 9,976,453 1.73% 08/20/2002................ 7,000,000 6,983,181 1.74% 09/19/2002................ 10,000,000 9,961,333 MetLife Funding, Inc. 1.79% 08/20/2002................ 17,000,000 16,957,736 Morgan Stanley Dean Witter 1.78% 07/01/2002................ 38,000,000 38,000,000 1.76% 08/01/2002................ 4,000,000 3,993,938 Nike, Inc. 1.80% 07/19/2002................ 10,900,000 10,890,190 1.76% 07/22/2002................ 7,000,000 6,992,813 1.77% 08/13/2002................ 7,000,000 6,985,201 1.78% 08/19/2002................ 10,000,000 9,975,772 1.76% 08/29/2002................ 7,200,000 7,179,232 PACCAR Financial Corp. 1.74% 07/24/2002................ 3,530,000 3,526,076 1.75% 08/12/2002................ 8,000,000 7,983,667 1.75% 09/19/2002................ 7,200,000 7,172,000 1.76% 09/25/2002................ 11,600,000 11,551,228 Pitney Bowes, Inc. 1.73% 07/15/2002................ 8,300,000 8,294,416 1.73% 07/22/2002................ 14,500,000 14,485,367 1.73% 07/23/2002................ 7,400,000 7,392,177 Siemens Capital Corp. 1.73% 08/12/2002................ 12,000,000 11,975,780 1.73% 08/15/2002................ 11,000,000 10,976,213 UBS Finance, Inc. 1.74% 07/10/2002................ 31,000,000 30,986,515 1.76% 08/06/2002................ 11,000,000 10,980,640 Verizon Network Funding 1.75% 07/09/2002................ 10,000,000 9,996,111 Wells Fargo Financial, Inc. 1.77% 07/18/2002................ 10,000,000 9,991,642 1.80% 09/03/2002................ 7,500,000 7,476,000 --------------- Total Commercial Paper (Cost $1,100,259,602)............... 1,100,259,602 ---------------
See Accompanying Notes to Financial Statements 90 SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------- REPURCHASE AGREEMENT (1.4%) J.P. Morgan Securities, Inc. 1.85% dated 06/28/2002, due 07/01/2002 in the amount of $16,893,823. Collateralized by U.S. Treasury Bills due 07/05/2002 to 11/29/2014 U.S. Treasury Strips due 02/15/2010 to 08/15/2028 (Cost $16,891,251).............. $ 16,891,251 $ 16,891,251 --------------- TOTAL INVESTMENTS (101.3%) (Cost $1,222,093,561)............... 1,222,093,561 OTHER ASSETS LESS LIABILITIES (-1.3%)............................. (16,123,717) --------------- NET ASSETS (100.0%).................. $ 1,205,969,844 ===============
* Floating rate note whose interest rate is reset periodically based on an index. The interest rate shown reflects the rate at June 30, 2002. See Accompanying Notes to Financial Statements 91 STATEMENTS OF ASSETS AND LIABILITIES -------------------------------------------------------------------------------- COLUMBIA FUNDS JUNE 30, 2002 (UNAUDITED) (IN THOUSANDS, EXCEPT NET ASSET VALUE)
COMMON GROWTH INTERNATIONAL SPECIAL SMALL CAP STOCK FUND STOCK FUND FUND FUND ---------- FUND --------- --------- -------- -------- ASSETS: Investments at cost*........................ $524,895 $ 934,132 $130,671 $ 636,234 $ 602,487 --------------------------------------------- -------- ---------- -------- --------- --------- Investments................................. $531,389 $ 948,643 $130,449 $ 587,610 $ 595,640 Repurchase agreements....................... 9,451 12,305 4,917 91,226 34,524 -------- ---------- -------- --------- --------- Total investments at value.................. 540,840 960,948 135,366 678,836 630,164 Cash........................................ -- -- 249 6,796 -- Cash denominated in foreign currencies (cost $7,080)................................... -- -- 7,415 -- -- Receivable for: Investments sold.......................... 1,761 2,085 2,512 274 1,786 Capital stock sold........................ 347 297 -- 575 16,553 Interest.................................. 21 136 7 112 41 Dividends................................. 290 419 311 50 64 Expense reimbursement..................... -- -- -- -- -- -------- ---------- -------- --------- --------- Total assets................................ 543,259 963,885 145,860 686,643 648,608 -------- ---------- -------- --------- --------- LIABILITIES: Payable for: Investments purchased..................... 2,586 16,283 3,998 10,506 4,500 Capital stock redeemed.................... 673 2,841 -- 1,774 2,528 Due to custodian.......................... 3,808 2,212 -- -- 3,231 Dividends and distributions............... -- -- -- -- -- Investment management fee................. 277 479 113 529 529 Transfer agent fees and expenses.......... 72 119 41 72 48 Other accrued expenses.................... 118 220 87 150 119 -------- ---------- -------- --------- --------- Total liabilities........................... 7,534 22,154 4,239 13,031 10,955 -------- ---------- -------- --------- --------- NET ASSETS................................... $535,725 $ 941,731 $141,621 $ 673,612 $ 637,653 ======== ========== ======== ========= ========= NET ASSETS consist of: Paid-in capital............................. $603,174 $1,197,695 $168,786 $ 788,725 $ 767,193 Undistributed net investment income (loss).................................... 1,154 (571) (144) (3,099) (2,969) Undistributed net realized gain (accumulated losses) from: Investment transactions................... (84,548) (282,209) (32,155) (154,616) (154,248) Foreign currency transactions............. -- -- 82 -- -- Unrealized appreciation (depreciation) on: Investments............................... 15,945 26,816 4,695 42,602 27,677 Translation of assets and liabilities in foreign currencies....................... -- -- 357 -- -- -------- ---------- -------- --------- --------- NET ASSETS................................... $535,725 $ 941,731 $141,621 $ 673,612 $ 637,653 ======== ========== ======== ========= ========= SHARES OF CAPITAL STOCK OUTSTANDING.......... 31,541 39,075 11,836 39,404 33,467 ======== ========== ======== ========= ========= NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE............................. $ 16.99 $ 24.10 $ 11.97 $ 17.10 $ 19.05 ======== ========== ======== ========= =========
* Cost for both financial statements and federal income tax purposes is the same. See Accompanying Notes to Financial Statements 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*........................ $719,028 $10,621 $330,801 $828,449 $83,610 --------------------------------------------- -------- ------- -------- -------- ------- Investments................................. $793,598 $ 8,128 $256,551 $802,726 $79,623 Repurchase agreements....................... 45,714 1,699 85,972 43,730 5,217 -------- ------- -------- -------- ------- Total investments at value.................. 839,312 9,827 342,523 846,456 84,840 Cash........................................ 682 -- -- 672 25 Cash denominated in foreign currencies (cost $7,080)................................... -- -- -- -- -- Receivable for: Investments sold........................... -- 52 4,015 3,135 444 Capital stock sold......................... 3,650 8 1,169 549 253 Interest................................... 56 1 144 4,141 849 Dividends.................................. 2,726 -- 295 256 -- Expense reimbursement...................... -- 9 -- -- 4 -------- ------- -------- -------- ------- Total assets................................ 846,426 9,897 348,146 855,209 86,415 -------- ------- -------- -------- ------- LIABILITIES: Payable for: Investments purchased...................... 10,940 -- 4,031 4,331 698 Capital stock redeemed..................... 6,393 36 410 40,129 67 Due to custodian........................... -- 1 343 -- -- Dividends and distributions................ 529 -- -- 68 11 Investment management fee.................. 497 8 217 355 34 Transfer agent fees and expenses........... 25 8 21 76 12 Other accrued expenses..................... 63 9 46 144 19 -------- ------- -------- -------- ------- Total liabilities........................... 18,447 62 5,068 45,103 841 -------- ------- -------- -------- ------- NET ASSETS................................... $827,979 $ 9,835 $343,078 $810,106 $85,574 ======== ======= ======== ======== ======= Net ASSETS consist of: Paid-in capital............................. $709,462 $16,983 $328,111 $885,655 $84,485 Undistributed net investment income (loss).. (69) (82) 1,049 (265) -- Undistributed net realized gain (accumulated losses) from: Investment transactions................... (1,698) (6,272) 2,196 (93,291) (141) Foreign currency transactions............. -- -- -- -- -- Unrealized appreciation (depreciation) on: Investments............................... 120,284 (794) 11,722 18,007 1,230 Translation of assets and liabilities in foreign currencies....................... -- -- -- -- -- -------- ------- -------- -------- ------- NET ASSETS................................... $827,979 $ 9,835 $343,078 $810,106 $85,574 ======== ======= ======== ======== ======= SHARES OF CAPITAL STOCK OUTSTANDING.......... 42,068 2,132 23,103 43,119 9,960 ======== ======= ======== ======== ======= NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE............................. $ 19.68 $ 4.61 $ 14.85 $ 18.79 $ 8.59 ======== ======= ======== ======== =======
See Accompanying Notes to Financial Statements 93 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*........................ $461,187 $13,368 $476,439 $409,977 $1,222,094 --------------------------------------------- -------- ------- -------- -------- ---------- Investments................................. $451,600 $13,807 $493,061 $378,425 $1,205,203 Repurchase agreements....................... 20,782 -- -- 23,321 16,891 -------- ------- -------- -------- ---------- Total investments at value.................. 472,382 13,807 493,061 401,746 1,222,094 Cash........................................ 871 -- -- -- -- Cash denominated in foreign currencies (cost $7,080)................................... -- -- -- -- -- Receivable for: Investments sold........................... 10,481 -- 2,702 4,396 -- Capital stock sold......................... 849 -- 66 994 2,206 Interest................................... 5,483 193 6,246 7,766 18 Dividends.................................. -- -- -- -- -- Expense reimbursement...................... -- 6 -- -- -- -------- ------- -------- -------- ---------- Total assets................................ 490,066 14,006 502,075 414,902 1,224,318 -------- ------- -------- -------- ---------- LIABILITIES: Payable for: Investments purchased...................... 12,424 265 1,206 -- -- Capital stock redeemed..................... 2,068 1 152 1,255 7,281 Due to custodian........................... -- 8 1,455 71 10,373 Dividends and distributions................ 103 3 376 246 -- Investment management fee.................. 194 6 204 205 460 Transfer agent fees and expenses........... 36 3 13 14 91 Other accrued expenses..................... 59 8 30 173 143 -------- ------- -------- -------- ---------- Total liabilities........................... 14,884 294 3,436 1,964 18,348 -------- ------- -------- -------- ---------- NET ASSETS................................... $475,182 $13,712 $498,639 $412,938 $1,205,970 ======== ======= ======== ======== ========== Net ASSETS consist of: Paid-in capital............................. $474,101 $13,240 $478,374 $444,155 $1,205,970 Undistributed net investment income (loss).. (780) -- 23 (525) -- Undistributed net realized gain (accumulated losses) from: Investment transactions................... (9,334) 33 3,620 (22,461) -- Foreign currency transactions............. -- -- -- -- -- Unrealized appreciation (depreciation) on: Investments............................... 11,195 439 16,622 (8,231) -- Translation of assets and liabilities in foreign currencies....................... -- -- -- -- -- -------- ------- -------- -------- ---------- NET ASSETS................................... $475,182 $13,712 $498,639 $412,938 $1,205,970 ======== ======= ======== ======== ========== SHARES OF CAPITAL STOCK OUTSTANDING.......... 35,857 1,365 40,274 49,043 1,205,970 ======== ======= ======== ======== ========== NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE............................. $ 13.25 $ 10.04 $ 12.38 $ 8.42 $ 1.00 ======== ======= ======== ======== ==========
See Accompanying Notes to Financial Statements 93 STATEMENTS OF OPERATIONS -------------------------------------------------------------------------------- COLUMBIA FUNDS FOR THE SIX MONTHS ENDED JUNE 30, 2002 (UNAUDITED) (IN THOUSANDS)
COMMON GROWTH INTERNATIONAL SPECIAL STOCK FUND STOCK FUND SMALL CAP FUND --------- FUND -------- FUND --------- -------- -------- NET INVESTMENT INCOME: Income: Interest................................... $ 179 $ 247 $ 52 $ 499 $ 399 Dividends.................................. 3,559 3,706 1,374 534 607 Foreign withholding tax on dividend income.................................... -- -- (174) -- -- -------- --------- ------- -------- --------- Total income.............................. 3,738 3,953 1,252 1,033 1,006 -------- --------- ------- -------- --------- Expenses: Investment management fees................. 1,870 3,318 665 3,353 3,297 Transfer agent fees and expenses........... 427 721 246 434 281 Shareholder servicing fees................. 91 85 10 117 185 Postage, printing, and other............... 137 308 79 160 107 Custodian fees............................. 33 49 65 33 55 Registration and filing fees............... 11 17 10 11 29 Legal, insurance, and audit fees........... 23 29 24 25 21 Director fees.............................. 3 6 1 4 3 -------- --------- ------- -------- --------- Total expenses............................ 2,595 4,533 1,100 4,137 3,978 Fees paid indirectly....................... (4) (9) (2) (5) (3) Expense reimbursements..................... -- -- -- -- -- -------- --------- ------- -------- --------- Net expenses.............................. 2,591 4,524 1,098 4,132 3,975 -------- --------- ------- -------- --------- Net investment income (loss)................. 1,147 (571) 154 (3,099) (2,969) -------- --------- ------- -------- --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) from: Investment transactions.................... (23,265) (81,358) (3,968) (16,489) (31,993) Foreign currency transactions.............. -- -- 82 -- -- -------- --------- ------- -------- --------- Net realized gain (loss).................. (23,265) (81,358) (3,886) (16,489) (31,993) -------- --------- ------- -------- --------- Change in net unrealized appreciation or depreciation on: Investments................................ (76,426) (213,140) 2,491 (79,306) (65,152) Translation of assets and liabilities in foreign currencies........................ -- -- 357 -- -- -------- --------- ------- -------- --------- Change in net unrealized appreciation or depreciation............................ (76,426) (213,140) 2,848 (79,306) (65,152) -------- --------- ------- -------- --------- Net realized and unrealized gain (loss) on investments............................. (99,691) (294,498) (1,038) (95,795) (97,145) -------- --------- ------- -------- --------- NET INCREASE (DECREASE) RESULTING FROM OPERATIONS................................... $(98,544) $(295,069) $ (884) $(98,894) $(100,114) ======== ========= ======= ======== =========
See Accompanying Notes to Financial Statements 94 STATEMENTS OF OPERATIONS --------------------------------------------------------------------------------
REAL ESTATE STRATEGIC SHORT TERM EQUITY TECHNOLOGY VALUE BALANCED BOND FUND FUND FUND FUND FUND ----------- ---------- --------- -------- ---------- NET INVESTMENT INCOME: Income: Interest................................... $ 624 $ 11 $ 707 $ 12,080 $1,836 Dividends.................................. 16,054 1 1,670 3,047 -- Foreign withholding tax on dividend income.................................... -- -- -- -- -- ------- ------- ------- -------- ------ Total income.............................. 16,678 12 2,377 15,127 1,836 ------- ------- ------- -------- ------ Expenses: Investment management fees................. 2,700 57 1,062 2,288 178 Transfer agent fees and expenses........... 139 43 110 451 68 Shareholder servicing fees................. 368 8 55 176 5 Postage, printing, and other............... 88 16 24 161 21 Custodian fees............................. 26 9 31 44 5 Registration and filing fees............... 42 4 34 12 10 Legal, insurance, and audit fees........... 16 13 14 25 12 Director fees.............................. 3 -- 1 4 -- ------- ------- ------- -------- ------ Total expenses............................ 3,382 150 1,331 3,161 299 Fees paid indirectly....................... (2) -- (2) (5) (1) Expense reimbursements..................... -- (56) -- -- (31) ------- ------- ------- -------- ------ Net expenses.............................. 3,380 94 1,329 3,156 267 ------- ------- ------- -------- ------ Net investment income (loss)................. 13,298 (82) 1,048 11,971 1,569 ------- ------- ------- -------- ------ NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) from: Investment transactions.................... 7,624 (1,275) 2,246 (17,849) (159) Foreign currency transactions.............. -- -- -- -- -- ------- ------- ------- -------- ------ Net realized gain (loss).................. 7,624 (1,275) 2,246 (17,849) (159) ------- ------- ------- -------- ------ Change in net unrealized appreciation or depreciation on: Investments................................ 54,480 (1,936) (3,540) (68,586) 574 Translation of assets and liabilities in foreign currencies........................ -- -- -- -- -- ------- ------- ------- -------- ------ Change in net unrealized appreciation or depreciation............................ 54,480 (1,936) (3,540) (68,586) 574 ------- ------- ------- -------- ------ Net realized and unrealized gain (loss) on investments............................. 62,104 (3,211) (1,294) (86,435) 415 ------- ------- ------- -------- ------ NET INCREASE (DECREASE) RESULTING FROM OPERATIONS................................... $75,402 $(3,293) $ (246) $(74,464) $1,984 ======= ======= ======= ======== ======
See Accompanying Notes to Financial Statements 95 STATEMENTS OF OPERATIONS --------------------------------------------------------------------------------
FIXED NATIONAL OREGON COLUMBIA INCOME MUNICIPAL MUNICIPAL DAILY SECURITIES BOND BOND HIGH YIELD INCOME FUND FUND FUND FUND COMPANY ------- ------ ------- -------- ------- NET INVESTMENT INCOME: Income: Interest................................... $14,087 $332 $12,529 $ 13,518 $11,285 Dividends.................................. -- -- -- -- -- Foreign withholding tax on dividend income.................................... -- -- -- -- -- ------- ---- ------- -------- ------- Total income.............................. 14,087 332 12,529 13,518 11,285 ------- ---- ------- -------- ------- Expenses: Investment management fees................. 1,154 33 1,216 1,047 2,809 Transfer agent fees and expenses........... 211 18 75 77 539 Shareholder servicing fees................. 54 -- 22 137 3 Postage, printing, and other............... 80 11 44 83 152 Custodian fees............................. 19 1 13 16 110 Registration and filing fees............... 16 3 7 56 15 Legal, insurance, and audit fees........... 17 13 20 14 25 Director fees.............................. 2 -- 2 2 6 ------- ---- ------- -------- ------- Total expenses............................ 1,553 79 1,399 1,432 3,659 Fees paid indirectly....................... (2) -- (1) (1) (18) Expense reimbursements..................... -- (35) -- -- -- ------- ---- ------- -------- ------- Net expenses.............................. 1,551 44 1,398 1,431 3,641 ------- ---- ------- -------- ------- Net investment income (loss)................. 12,536 288 11,131 12,087 7,644 ------- ---- ------- -------- ------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) from: Investment transactions.................... (272) 38 2,189 (12,572) -- Foreign currency transactions.............. -- -- -- -- -- ------- ---- ------- -------- ------- Net realized gain (loss).................. (272) 38 2,189 (12,572) -- ------- ---- ------- -------- ------- Change in net unrealized appreciation or depreciation on: Investments................................ 1,718 315 9,886 (7,613) -- Translation of assets and liabilities in foreign currencies........................ -- -- -- -- -- ------- ---- ------- -------- ------- Change in net unrealized appreciation or depreciation............................ 1,718 315 9,886 (7,613) -- ------- ---- ------- -------- ------- Net realized and unrealized gain (loss) on investments............................. 1,446 353 12,075 (20,185) -- ------- ---- ------- -------- ------- NET INCREASE (DECREASE) RESULTING FROM OPERATIONS................................... $13,982 $641 $23,206 $ (8,098) $ 7,644 ======= ==== ======= ======== =======
See Accompanying Notes to Financial Statements 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, 2002 DECEMBER 31, JUNE 30, 2002 DECEMBER 31, JUNE 30, 2002 DECEMBER 31, (UNAUDITED) 2001 (UNAUDITED) 2001 (UNAUDITED) 2001 ------------- ------------- ------------- ------------- ------------- ------------- OPERATIONS: Net investment income (loss)..................... $ 1,147 $ 2,393 $ (571) $ (1,006) $ 154 $ 96 Net realized gain (loss) from: Investment transactions.... (23,265) (53,094) (81,358) (197,533) (3,968) (24,968) Foreign currency transactions.............. -- -- -- -- 82 (487) Change in net unrealized appreciation or depreciation on: Investments................ (76,426) (104,551) (213,140) (197,526) 2,491 (6,997) Translation of assets and liabilities in foreign currencies................ -- -- -- -- 357 (38) ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) resulting from operations................. (98,544) (155,252) (295,069) (396,065) (884) (32,394) DISTRIBUTIONS TO SHAREHOLDERS: From net investment income... -- (2,384) -- -- -- -- From net realized gain from investment transactions and foreign currency transactions............... -- (568) -- (6,365) -- -- From return of capital....... -- -- -- -- -- (131) NET CAPITAL SHARE TRANSACTIONS................. (47,128) (55,533) (89,044) (190,953) 6,879 (7,165) ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets....................... (145,672) (213,737) (384,113) (593,383) 5,995 (39,690) NET ASSETS: Beginning of period.......... 681,397 895,134 1,325,844 1,919,227 135,626 175,316 ------------ ------------ ------------ ------------ ------------ ------------ End of period................ $ 535,725 $ 681,397 $ 941,731 $ 1,325,844 $ 141,621 $ 135,626 ============ ============ ============ ============ ============ ============ Undistributed net investment income (loss) at end of period....................... $ 1,154 $ 7 $ (571) $ -- $ (144) $ (298) ============ ============ ============ ============ ============ ============
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, 2002 DECEMBER 31, JUNE 30, 2002 DECEMBER 31, JUNE 30, 2002 DECEMBER 31, (UNAUDITED) 2001 (UNAUDITED) 2001 (UNAUDITED) 2001 ------------- ------------- ------------- ------------- ------------- ------------- OPERATIONS: Net investment income........ $ 11,971 $ 27,849 $ 1,569 $ 2,397 $ 12,536 $ 24,966 Net realized gain (loss) from investment transactions.... (17,849) (61,040) (159) 623 (272) 6,420 Change in net unrealized appreciation or depreciation on investments................ (68,586) (51,965) 574 94 1,718 1,195 ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) resulting from operations................. (74,464) (85,156) 1,984 3,114 13,982 32,581 DISTRIBUTIONS TO SHAREHOLDERS: From net investment income... (11,813) (28,272) (1,569) (2,397) (12,747) (25,535) From net realized gain from investment transactions.... -- -- -- (108) -- -- NET CAPITAL SHARE TRANSACTIONS................. (87,366) (29,677) 22,229 26,465 8,204 79,898 ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets....................... (173,643) (143,105) 22,644 27,074 9,439 86,944 NET ASSETS: Beginning of period.......... 983,749 1,126,854 62,930 35,856 465,743 378,799 ------------ ------------ ------------ ------------ ------------ ------------ End of period................ $ 810,106 $ 983,749 $ 85,574 $ 62,930 $ 475,182 $ 465,743 ============ ============ ============ ============ ============ ============ Undistributed net investment income (loss) at end of period....................... $ (265) $ (423) $ -- $ -- $ (780) $ (569) ============ ============ ============ ============ ============ ============
See Accompanying Notes to Financial Statements 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, 2002 DECEMBER 31, JUNE 30, 2002 DECEMBER 31, JUNE 30, 2002 DECEMBER 31, (UNAUDITED) 2001 (UNAUDITED) 2001 (UNAUDITED) 2001 ------------- ------------- ------------- ------------- ------------- ------------- OPERATIONS: Net investment income (loss)..................... $ (3,099) $ (4,280) $ (2,969) $ (3,670) $ 13,298 $ 23,284 Net realized gain (loss) from: Investment transactions.... (16,489) (128,113) (31,993) (102,071) 7,624 (6,108) Foreign currency transactions.............. -- -- -- -- -- -- Change in net unrealized appreciation or depreciation on: Investments................ (79,306) (102,085) (65,152) 29,412 54,480 11,519 Translation of assets and liabilities in foreign currencies................ -- -- -- -- -- -- ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) resulting from operations................. (98,894) (234,478) (100,114) (76,329) 75,402 28,695 DISTRIBUTIONS TO SHAREHOLDERS: From net investment income... -- -- -- -- (13,367) (21,222) From net realized gain from investment transactions and foreign currency transactions............... -- (36,111) -- -- -- -- From return of capital....... -- -- -- -- -- (2,074) NET CAPITAL SHARE TRANSACTIONS................. (13,565) (38,865) 119,801 175,325 144,354 179,427 ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets....................... (112,459) (309,454) 19,687 98,996 206,389 184,826 NET ASSETS: Beginning of period.......... 786,071 1,095,525 617,966 518,970 621,590 436,764 ------------ ------------ ------------ ------------ ------------ ------------ End of period................ $ 673,612 $ 786,071 $ 637,653 $ 617,966 $ 827,979 $ 621,590 ============ ============ ============ ============ ============ ============ Undistributed net investment income (loss) at end of period....................... $ (3,099) $ -- $ (2,969) $ -- $ (69) $ -- ============ ============ ============ ============ ============ ============
NATIONAL MUNICIPAL OREGON MUNICIPAL BOND FUND BOND FUND HIGH YIELD FUND ----------------------------- ----------------------------- ----------------------------- SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR ENDED ENDED ENDED ENDED ENDED ENDED JUNE 30, 2002 DECEMBER 31, JUNE 30, 2002 DECEMBER 31, JUNE 30, 2002 DECEMBER 31, (UNAUDITED) 2001 (UNAUDITED) 2001 (UNAUDITED) 2001 ------------- ------------- ------------- ------------- ------------- ------------- OPERATIONS: Net investment income........ $ 288 $ 531 $ 11,131 $ 22,218 $ 12,087 $ 13,586 Net realized gain (loss) from investment transactions.... 38 83 2,189 2,447 (12,572) (6,979) Change in net unrealized appreciation or depreciation on investments................ 315 (162) 9,886 (3,897) (7,613) 2,694 ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) resulting from operations................. 641 452 23,206 20,768 (8,098) 9,301 DISTRIBUTIONS TO SHAREHOLDERS: From net investment income... (286) (533) (11,125) (22,201) (12,332) (13,866) From net realized gain from investment transactions.... -- (26) -- (1,100) -- -- NET CAPITAL SHARE TRANSACTIONS................. (412) 2,978 (5,080) 57,627 194,374 145,984 ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets....................... (57) 2,871 7,001 55,094 173,944 141,419 NET ASSETS: Beginning of period.......... 13,769 10,898 491,638 436,544 238,994 97,575 ------------ ------------ ------------ ------------ ------------ ------------ End of period................ $ 13,712 $ 13,769 $ 498,639 $ 491,638 $ 412,938 $ 238,994 ============ ============ ============ ============ ============ ============ Undistributed net investment income (loss) at end of period....................... $ -- $ (2) $ 23 $ 17 $ (525) $ (280) ============ ============ ============ ============ ============ ============
See Accompanying Notes to Financial Statements 97 STATEMENTS OF CHANGES IN NET ASSETS --------------------------------------------------------------------------------
TECHNOLOGY FUND STRATEGIC VALUE FUND ----------------------------- ----------------------------- SIX MONTHS SIX MONTHS ENDED YEAR ENDED ENDED YEAR ENDED JUNE 30, 2002 DECEMBER 31, JUNE 30, 2002 DECEMBER 31, (UNAUDITED) 2001 (UNAUDITED) 2001 ------------- ------------- ------------- ------------- OPERATIONS: Net investment income (loss)..................... $ (82) $ (129) $ 1,048 $ 514 Net realized gain (loss) from: Investment transactions.... (1,275) (4,782) 2,246 (39) Foreign currency transactions.............. -- -- -- -- Change in net unrealized appreciation or depreciation on: Investments................ (1,936) 1,380 (3,540) 14,414 Translation of assets and liabilities in foreign currencies................ -- -- -- -- ------------ ------------ ------------ ------------ Net increase (decrease) resulting from operations................. (3,293) (3,531) (246) 14,889 DISTRIBUTIONS TO SHAREHOLDERS: From net investment income... -- -- -- (502) From net realized gain from investment transactions and foreign currency transactions............... -- -- -- -- From return of capital....... -- -- -- -- NET CAPITAL SHARE TRANSACTIONS................. 2,743 9,589 203,820 115,591 ------------ ------------ ------------ ------------ Net increase (decrease) in net assets....................... (550) 6,058 203,574 129,978 NET ASSETS: Beginning of period.......... 10,385 4,327 139,504 9,526 ------------ ------------ ------------ ------------ End of period................ $ 9,835 $ 10,385 $ 343,078 $ 139,504 ============ ============ ============ ============ Undistributed net investment income (loss) at end of period....................... $ (82) $ -- $ 1,049 $ 1 ============ ============ ============ ============
COLUMBIA DAILY INCOME COMPANY ----------------------------- SIX MONTHS YEAR ENDED ENDED JUNE 30, 2002 DECEMBER 31, (UNAUDITED) 2001 ------------- ------------- OPERATIONS: Net investment income........ $ 7,644 $ 45,230 Net realized gain (loss) from investment transactions.... -- -- Change in net unrealized appreciation or depreciation on investments................ -- -- ------------ ------------ Net increase (decrease) resulting from operations................. 7,644 45,230 DISTRIBUTIONS TO SHAREHOLDERS: From net investment income... (7,644) (45,230) From net realized gain from investment transactions.... -- -- NET CAPITAL SHARE TRANSACTIONS................. (47,565) 55,384 ------------ ------------ Net increase (decrease) in net assets....................... (47,565) 55,384 NET ASSETS: Beginning of period.......... 1,253,535 1,198,151 ------------ ------------ End of period................ $ 1,205,970 $ 1,253,535 ============ ============ Undistributed net investment income (loss) at end of period....................... $ -- $ -- ============ ============
See Accompanying Notes to Financial Statements 97 NOTES TO FINANCIAL STATEMENTS -------------------------------------------------------------------------------- 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 sale prices reported by the principal securities exchanges on which the investments are traded or, in the absence of recorded sales, at the closing bid prices on such exchanges or over-the-counter markets. 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. 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. FINANCIAL FUTURES CONTRACTS. Certain Funds may invest in financial futures contracts solely for the purpose of hedging their existing portfolio securities, or securities that the Funds intend to purchase, against fluctuations in fair value caused by changes in prevailing market interest rates. Upon entering into a financial futures contract, a fund is required to pledge to the broker an amount of cash, U.S. government securities or other assets, equal to a certain percentage of the contract amount (initial margin deposit). Subsequent payments, known as "variation margin," are made or received by a fund each day, depending on the daily fluctuations in the fair value of the underlying security. A fund recognizes a gain or loss equal to the daily variation margin. Should market conditions move unexpectedly, a fund may not achieve the anticipated benefits of the financial futures contracts and may realize a loss. The use of futures transactions involves the risk of imperfect correlation in movements in the price of futures contracts interest rates, and the underlying assets. The daily changes in contract value are recorded as unrealized gains or losses, and a fund recognizes the realized gain or loss when the contract is closed. INVESTMENT TRANSACTIONS. Investment transactions are accounted for as of the date the investments are purchased or sold. Net realized gains and losses are determined on the identified cost basis, which is also used for federal income tax purposes. Securities purchased on a when-issued or forward-delivery basis may be settled a month or more after trade date; interest income is not 98 NOTES TO FINANCIAL STATEMENTS -------------------------------------------------------------------------------- accrued until settlement date. Each of the Funds will segregate liquid assets with a current value at least equal to the amount of its when-issued purchase commitments until settlement date. INVESTMENT INCOME AND EXPENSES. Dividend income less foreign taxes withheld (if any) is recorded on the ex-dividend date. Certain dividends from foreign securities will be recorded as soon as the fund is informed of the dividend if such information is obtained subsequent to the ex-dividend date. Interest income is recorded on the accrual basis and includes accretion of discounts, amortization of premiums and paydown gains and losses. Expenses are recorded on the accrual basis and each Fund bears expenses incurred specifically on its behalf as well as a portion of general expenses incurred on behalf of all Funds. Expenses for "fees paid indirectly" reflect earnings credits on uninvested cash balances used to reduce the Funds' 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 Funds could be exposed to risks if counterparties to the forward contracts are unable to meet the terms of their contracts or if the value of the foreign currency changes unfavorably. The effect of any change in the value of a hedged foreign currency would be offset by the corresponding change (resulting from a change in exchange rates) in value of the securities denominated in that currency. For the International Stock Fund, net realized gains arising from such transactions for the six months ended June 30, 2002, amounted to $73,502 and are included in realized gains from foreign currency transactions. As of June 30, 2002, 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 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, Technol- 99 NOTES TO FINANCIAL STATEMENTS -------------------------------------------------------------------------------- NOTE 1 -- SIGNIFICANT ACCOUNTING POLICIES (CONT.) ogy 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 of the Funds may be made at the discretion of the Board of Directors in accordance with federal income tax regulations. FEDERAL INCOME TAXES. Each of the Funds intends to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies by distributing substantially all taxable net investment income and net realized gains to its shareholders in a manner that results in no tax to the Funds. Therefore, no federal income or excise tax provision is required. FOREIGN CAPITAL GAINS TAXES. Realized gains in certain countries may be subject to foreign taxes at the fund level, at rates ranging from approximately 10% to 30%. The Funds provide for such foreign taxes on net realized and unrealized gains at the appropriate rate for each jurisdiction. OTHER. As of June 30, 2002, the International Stock Fund held 92% of its net assets in equity securities of companies in countries other than the United States. While the Fund investments are not limited as to market capitalization, 93% of the portfolio, based on market value, were in companies considered to be large and well established, based on standards of the applicable country or foreign market. 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, 2002, 1% of the Fund's debt securities were rated A, 3% were rated Baa, 58% were rated Ba, and 38% were rated B, as rated by Moody's Investors Service, Inc. 100 NOTES TO FINANCIAL STATEMENTS -------------------------------------------------------------------------------- NOTE 2 -- INVESTMENT TRANSACTIONS During the six months ended June 30, 2002, purchases, sales, and net realized gains (losses) of long-term securities were as follows:
REALIZED PURCHASES SALES GAINS (LOSSES) -------------- -------------- -------------- Common Stock Fund........................................... $ 353,692,539 $ 372,302,615 $(23,264,639) Growth Fund................................................. 1,015,212,928 1,051,537,001 (81,358,665) International Stock Fund.................................... 50,467,406 50,980,126 ( 3,967,880) Special Fund................................................ 422,010,897 510,510,029 (16,488,895) Small Cap Fund.............................................. 466,695,771 356,081,987 (31,992,519) Real Estate Equity Fund..................................... 317,358,277 147,560,140 7,623,417 Technology Fund............................................. 13,432,263 12,166,312 (1,274,879) Strategic Value Fund........................................ 327,100,144 181,798,507 2,245,392 Balanced Fund............................................... 378,159,684 428,643,811 (19,115,492) Short Term Bond Fund........................................ 32,097,278 12,827,019 (245,386) Fixed Income Securities Fund................................ 96,741,310 108,058,683 (964,196) National Municipal Bond Fund................................ 3,403,611 3,546,110 38,622 Oregon Municipal Bond Fund.................................. 65,320,918 63,833,591 2,183,161 High Yield Fund............................................. 217,721,692 54,279,376 (12,618,125)
During the six months ended June 30, 2002, purchases, sales, and net realized gains of U.S. Government securities were as follows:
REALIZED PURCHASES SALES GAINS -------------- -------------- ------------- Balanced Fund............................................... $ 133,522,154 $ 149,759,791 $ 1,161,771 Short Term Bond Fund........................................ 18,779,257 17,591,930 85,998 Fixed Income Securities Fund................................ 193,500,361 189,565,503 564,774
101 NOTES TO FINANCIAL STATEMENTS -------------------------------------------------------------------------------- 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, discount accretion/premium amortization on debt securities, and paydown gains and losses on mortgage-backed securities. As of December 31, 2001, for federal income tax purposes, the unused capital loss carryforwards that expire in 2007, 2008 and 2009, post-October losses that were deferred to January 1, 2002, and as of June 30, 2002 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, 2002 APPRECIATION (DEPRECIATION) (DEPRECIATION) ------------- ------------------ ------------ -------------- -------------- Common Stock Fund....................... $ 52,039,637 $ 3,544,311 $56,844,078 $(40,899,705) $ 15,944,373 Growth Fund............................. 162,540,209 -- 112,580,135 (85,764,003) 26,816,132 International Stock Fund................ 23,627,839 4,101,263 13,861,504 (9,165,517) 4,695,987 Special Fund............................ 110,043,273 9,195,303 82,443,724 (39,841,837) 42,601,887 Small Cap Fund.......................... 117,057,825 1,091,352 73,018,858 (45,342,372) 27,676,486 Real Estate Equity Fund................. 1,271,327 11,961,083 122,783,875 (2,499,098) 120,284,777 Technology Fund......................... 4,393,873 -- 467,574 (1,262,059) (794,485) Strategic Value Fund.................... -- -- 22,020,318 (10,298,168) 11,722,150 Balanced Fund........................... 65,697,715 4,186,321 57,327,154 (39,735,118) 17,592,036 Short Term Bond Fund.................... -- -- 1,451,346 (220,818) 1,230,528 Fixed Income Securities Fund............ 8,804,253 -- 13,673,267 (3,191,548) 10,481,719 National Municipal Bond Fund............ -- 8,424 467,083 (26,036) 441,047 Oregon Municipal Bond Fund.............. -- -- 18,379,920 (1,642,829) 16,737,091 High Yield Fund......................... 9,118,260 609,665 4,797,825 (13,499,223) (8,701,398)
102 NOTES TO FINANCIAL STATEMENTS -------------------------------------------------------------------------------- NOTE 4 -- 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 reimburse CTC for certain direct shareholder servicing and accounting costs. For the six months ended June 30, 2002, CFMC has voluntarily agreed to reimburse expenses, after fees paid indirectly, in excess of 1.65% 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 six months ended June 30, 2002, CFMC has contractually agreed to reimburse expenses, after fees paid indirectly, in excess of 0.65% for the National Municipal Bond Fund. At June 30, 2002, the Balanced Fund and the Fixed Income Securities Fund had investments in securities of U.S. Bank N.A., which provides primarily custodian services for these Funds. 103 NOTES TO FINANCIAL STATEMENTS -------------------------------------------------------------------------------- NOTE 5 -- 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 2002 DECEMBER 31, 2002 DECEMBER 31, 2002 DECEMBER 31, (UNAUDITED) 2001 (UNAUDITED) 2001 (UNAUDITED) 2001 ------------ ------------ ------------ ------------ ------------ ------------ SHARES: Shares sold.................... 3,657 10,491 2,959 6,698 3,746 10,570 Shares reinvested for dividends and distributions............ -- 145 -- 191 -- 11 ------------ ------------ ------------ ------------ ------------ ------------ 3,657 10,636 2,959 6,889 3,746 10,581 Shares redeemed................ (6,233) (13,300) (6,178) (12,490) (3,181) (11,177) ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease)........ (2,576) (2,664) (3,219) (5,601) 565 (596) ============ ============ ============ ============ ============ ============ AMOUNTS: Sales.......................... $ 69,390(1) $ 223,544(2) $ 85,246 $ 224,937 $ 44,719 $ 137,761 Reinvestment of dividends and distributions................ -- 2,905 -- 6,121 -- 129 ------------ ------------ ------------ ------------ ------------ ------------ 69,390 226,449 85,246 231,058 44,719 137,890 Less redemptions............... (116,518) (281,982) (174,290) (422,011) (37,840) (145,055) ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease)........ $ (47,128) $ (55,533) $ (89,044) $ (190,953) $ 6,879 $ (7,165) ============ ============ ============ ============ ============ ============ 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 2002 DECEMBER 31, 2002 DECEMBER 31, 2002 DECEMBER 31, (UNAUDITED) 2001 (UNAUDITED) 2001 (UNAUDITED) 2001 ------------ ------------ ------------ ------------ ------------ ------------ SHARES: Shares sold.................... 3,860 10,632 5,709 6,668 8,295 18,022 Shares reinvested for dividends and distributions............ 596 1,349 173 276 911 1,807 ------------ ------------ ------------ ------------ ------------ ------------ 4,456 11,981 5,882 6,944 9,206 19,829 Shares redeemed................ (8,924) (13,467) (3,284) (3,873) (8,581) (13,794) ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease)........ (4,468) (1,486) 2,598 3,071 625 6,035 ============ ============ ============ ============ ============ ============ AMOUNTS: Sales.......................... $ 77,562 $ 229,671 $ 48,828 $ 57,224 $ 109,519 $ 237,932 Reinvestment of dividends and distributions................ 11,664 27,875 1,483 2,359 12,045 23,906 ------------ ------------ ------------ ------------ ------------ ------------ 89,226 257,546 50,311 59,583 121,564 261,838 Less redemptions............... (176,592) (287,223) (28,082) (33,118) (113,360) (181,940) ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease)........ $ (87,366) $ (29,677) $ 22,229 $ 26,465 $ 8,204 $ 79,898 ============ ============ ============ ============ ============ ============ Capital stock authorized....... 100 million 100 million 200 million Par value...................... no par $ 0.01 $ 0.01
(1) Includes $4,174 of securities received in an in-kind transfer (2) Includes $17,070 of securities received in an in-kind transfer 104 NOTES TO FINANCIAL STATEMENTS --------------------------------------------------------------------------------
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 2002 DECEMBER 31, 2002 DECEMBER 31, 2002 DECEMBER 31, (UNAUDITED) 2001 (UNAUDITED) 2001 (UNAUDITED) 2001 ------------ ------------ ------------ ------------ ------------ ------------ SHARES: Shares sold.................... 7,061 10,828 15,136 23,701 15,519 19,257 Shares reinvested for dividends and distributions............ -- 1,813 -- -- 654 1,288 ------------ ------------ ------------ ------------ ------------ ------------ 7,061 12,641 15,136 23,701 16,173 20,545 Shares redeemed................ (7,771) (14,684) (9,501) (15,927) (8,565) (10,495) ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease)........ (710) (2,043) 5,635 7,774 7,608 10,050 ============ ============ ============ ============ ============ ============ AMOUNTS: Sales.......................... $ 130,584 $ 233,730 $ 319,648 $ 523,951 $ 295,320 $ 342,012 Reinvestment of dividends and distributions................ -- 35,254 -- -- 12,701 22,872 ------------ ------------ ------------ ------------ ------------ ------------ 130,584 268,984 319,648 523,951 308,021 364,884 Less redemptions............... (144,149) (307,849) (199,847) (348,626) (163,667) (185,457) ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease)........ $ (13,565) $ (38,865) $ 119,801 $ 175,325 $ 144,354 $ 179,427 ============ ============ ============ ============ ============ ============ Capital stock authorized....... 100 million 100 million 100 million Par value...................... $ 0.01 no par no par
NATIONAL MUNICIPAL OREGON MUNICIPAL HIGH YIELD BOND FUND BOND FUND FUND --------------------------- --------------------------- --------------------------- SIX MONTHS SIX MONTHS SIX MONTHS ENDED YEAR ENDED YEAR ENDED YEAR JUNE 30, ENDED JUNE 30, ENDED JUNE 30, ENDED 2002 DECEMBER 31, 2002 DECEMBER 31, 2002 DECEMBER 31, (UNAUDITED) 2001 (UNAUDITED) 2001 (UNAUDITED) 2001 ------------ ------------ ------------ ------------ ------------ ------------ SHARES: Shares sold.................... 362 648 6,656 12,007 33,222 34,218 Shares reinvested for dividends and distributions............ 26 51 715 1,491 1,322 1,452 ------------ ------------ ------------ ------------ ------------ ------------ 388 699 7,371 13,498 34,544 35,670 Shares redeemed................ (433) (399) (7,793) (8,799) (12,446) (19,588) ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease)........ (45) 300 (422) 4,699 22,098 16,082 ============ ============ ============ ============ ============ ============ AMOUNTS: Sales.......................... $ 3,594 $ 6,425 $ 81,507 $ 147,270 $ 291,712 $ 308,627 Reinvestment of dividends and distributions................ 265 508 8,758 18,269 11,495 13,034 ------------ ------------ ------------ ------------ ------------ ------------ 3,859 6,933 90,265 165,539 303,207 321,661 Less redemptions............... (4,271) (3,955) (95,345) (107,912) (108,833) (175,677) ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease)........ $ (412) $ 2,978 $ (5,080) $ 57,627 $ 194,374 $ 145,984 ============ ============ ============ ============ ============ ============ Capital stock authorized....... 100 million 100 million 100 million Par value...................... $ 0.01 no par no par
105 NOTES TO FINANCIAL STATEMENTS --------------------------------------------------------------------------------
TECHNOLOGY FUND STRATEGIC VALUE FUND --------------------------- --------------------------- SIX MONTHS SIX MONTHS ENDED YEAR ENDED YEAR JUNE 30, ENDED JUNE 30, ENDED 2002 DECEMBER 31, 2002 DECEMBER 31, (UNAUDITED) 2001 (UNAUDITED) 2001 ------------ ------------ ------------ ------------ SHARES: Shares sold.................... 1,110 2,783 18,477 13,572 Shares reinvested for dividends and distributions............ -- -- -- 34 ------------ ------------ ------------ ------------ 1,110 2,783 18,477 13,606 Shares redeemed................ (671) (1,591) (4,981) (4,847) ------------ ------------ ------------ ------------ Net increase (decrease)........ 439 1,192 13,496 8,759 ============ ============ ============ ============ AMOUNTS: Sales.......................... $ 6,482 $ 18,876 $ 277,994 $ 178,940 Reinvestment of dividends and distributions................ -- -- -- 500 ------------ ------------ ------------ ------------ 6,482 18,876 277,994 179,440 Less redemptions............... (3,739) (9,287) (74,174) (63,849) ------------ ------------ ------------ ------------ Net increase (decrease)........ $ 2,743 $ 9,589 $ 203,820 $ 115,591 ============ ============ ============ ============ Capital stock authorized....... 100 million 100 million Par value...................... no par no par
COLUMBIA DAILY INCOME COMPANY --------------------------- SIX MONTHS ENDED YEAR JUNE 30, ENDED 2002 DECEMBER 31, (UNAUDITED) 2001 ------------ ------------ SHARES: Shares sold.................... 662,866 1,507,707 Shares reinvested for dividends and distributions............ 7,642 45,211 ------------ ------------ 670,508 1,552,918 Shares redeemed................ (718,073) (1,497,534) ------------ ------------ Net increase (decrease)........ (47,565) 55,384 ============ ============ AMOUNTS: Sales.......................... $ 662,866 $ 1,507,707 Reinvestment of dividends and distributions................ 7,642 45,211 ------------ ------------ 670,508 1,552,918 Less redemptions............... (718,073) (1,497,534) ------------ ------------ Net increase (decrease)........ $ (47,565) $ 55,384 ============ ============ Capital stock authorized....... 2 billion Par value...................... $ 0.001
105 [COLUMBIA FUNDS LOGO] 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. Please read it carefully before investing. The managers' views contained in this report are subject to change at any time, based on market and other considerations. Portfolio changes should not be considered recommendations for action by individual investors. Funds distributed by PFPC Distributors, Inc. Mutual fund shares are not insured by the FDIC or any other governmental entity; are not deposits or other obligations of, or guaranteed by, any bank; and involve risks, including loss of principal.