-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, McYkRTRslPKo9zt3j2eP3SyWj9q6I5EWygJUEVrEG8KZgoPdoe1vE+N7Gq+NgNi+ E9IkTSvG16ABRnjWkUsdEg== 0001047469-98-033464.txt : 19980903 0001047469-98-033464.hdr.sgml : 19980903 ACCESSION NUMBER: 0001047469-98-033464 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19980630 FILED AS OF DATE: 19980902 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: COLUMBIA COMMON STOCK FUND INC CENTRAL INDEX KEY: 0000876606 STANDARD INDUSTRIAL CLASSIFICATION: [] FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-06341 FILM NUMBER: 98702862 BUSINESS ADDRESS: STREET 1: 1300 SW SIXTH AVE STREET 2: P O BOX 1350 CITY: PORTLAND STATE: OR ZIP: 97207 BUSINESS PHONE: 5032223600 MAIL ADDRESS: STREET 1: 1300 SW SIXTH AVE STREET 2: P O BOX 1350 CITY: PORTLAND STATE: OR ZIP: 92707 FILER: COMPANY DATA: COMPANY CONFORMED NAME: COLUMBIA DAILY INCOME CO CENTRAL INDEX KEY: 0000022082 STANDARD INDUSTRIAL CLASSIFICATION: [] IRS NUMBER: 930635121 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-02507 FILM NUMBER: 98702863 BUSINESS ADDRESS: STREET 1: 1301 SW SIXTH AVE STREET 2: P O BOX 1350 CITY: PORTLAND STATE: OR ZIP: 97207 BUSINESS PHONE: 5032223600 MAIL ADDRESS: STREET 1: 1300 SW SIXTH AVE STREET 2: P O BOX 1350 CITY: PORTLAND STATE: OR ZIP: 92707 FILER: COMPANY DATA: COMPANY CONFORMED NAME: COLUMBIA GROWTH FUND INC CENTRAL INDEX KEY: 0000022105 STANDARD INDUSTRIAL CLASSIFICATION: [] IRS NUMBER: 930560559 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-01449 FILM NUMBER: 98702864 BUSINESS ADDRESS: STREET 1: 1300 SW SIXTH AVE STREET 2: P O BOX 1350 CITY: PORTLAND STATE: OR ZIP: 97207 BUSINESS PHONE: 5032223600 MAIL ADDRESS: STREET 1: 1300 SW SIXTH AVE STREET 2: P O BOX 1350 CITY: PORTLAND STATE: OR ZIP: 92707 FILER: COMPANY DATA: COMPANY CONFORMED NAME: COLUMBIA FIXED INCOME SECURITIES FUND INC CENTRAL INDEX KEY: 0000707833 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 930824379 STATE OF INCORPORATION: OR FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-03581 FILM NUMBER: 98702865 BUSINESS ADDRESS: STREET 1: 1300 SW SIXTH AVE STREET 2: P O BOX 1350 CITY: PORTLAND STATE: OR ZIP: 97207 BUSINESS PHONE: 5032223600 MAIL ADDRESS: STREET 1: 1300 SW SIXTH AVE STREET 2: P O BOX 1350 CITY: PORTLAND STATE: OR ZIP: 92707 FILER: COMPANY DATA: COMPANY CONFORMED NAME: COLUMBIA MUNICIPAL BOND FUND INC CENTRAL INDEX KEY: 0000741558 STANDARD INDUSTRIAL CLASSIFICATION: [] IRS NUMBER: 930866151 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-03983 FILM NUMBER: 98702866 BUSINESS ADDRESS: STREET 1: 1300 SW SIXTH AVE STREET 2: P O BOX 1350 CITY: PORTLAND STATE: OR ZIP: 97207 BUSINESS PHONE: 5032223600 MAIL ADDRESS: STREET 1: 1300 SW SIXTH AVE STREET 2: P O BOX 1350 CITY: PORTLAND STATE: OR ZIP: 92707 FILER: COMPANY DATA: COMPANY CONFORMED NAME: COLUMBIA SPECIAL FUND INC CENTRAL INDEX KEY: 0000773599 STANDARD INDUSTRIAL CLASSIFICATION: [] STATE OF INCORPORATION: OR FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-04362 FILM NUMBER: 98702867 BUSINESS ADDRESS: STREET 1: 1300 SW SIXTH AVE STREET 2: P O BOX 1350 CITY: PORTLAND STATE: OR ZIP: 97207 BUSINESS PHONE: 5032223600 MAIL ADDRESS: STREET 1: 1300 SW SIXTH AVE STREET 2: P O BOX 1350 CITY: PORTLAND STATE: OR ZIP: 92707 FILER: COMPANY DATA: COMPANY CONFORMED NAME: COLUMBIA U S GOVERNMENT SECURITIES FUND INC CENTRAL INDEX KEY: 0000801962 STANDARD INDUSTRIAL CLASSIFICATION: [] FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-04842 FILM NUMBER: 98702868 BUSINESS ADDRESS: STREET 1: 1300 SW SIXTH AVE STREET 2: P O BOX 1350 CITY: PORTLAND STATE: OR ZIP: 97207 BUSINESS PHONE: 5032223600 MAIL ADDRESS: STREET 1: 1300 SW SIXTH AVE STREET 2: P O BOX 1350 CITY: PORTLAND STATE: OR ZIP: 92707 FORMER COMPANY: FORMER CONFORMED NAME: COLUMBIA U S GOVERNMENT GUARANTEED SECURITIES FUND INC DATE OF NAME CHANGE: 19920219 FILER: COMPANY DATA: COMPANY CONFORMED NAME: COLUMBIA BALANCED FUND INC /OR/ CENTRAL INDEX KEY: 0000876613 STANDARD INDUSTRIAL CLASSIFICATION: [] FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-06338 FILM NUMBER: 98702869 BUSINESS ADDRESS: STREET 1: 1300 SW SIXTH AVE STREET 2: P O BOX 1350 CITY: PORTLAND STATE: OR ZIP: 97207 BUSINESS PHONE: 5032223600 MAIL ADDRESS: STREET 1: 1300 SW SIXTH AVE STREET 2: P O BOX 1350 CITY: PORTLAND STATE: OR ZIP: 92707 FILER: COMPANY DATA: COMPANY CONFORMED NAME: COLUMBIA INTERNATIONAL STOCK FUND INC CENTRAL INDEX KEY: 0000889421 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 931089960 STATE OF INCORPORATION: OR FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-07024 FILM NUMBER: 98702870 BUSINESS ADDRESS: STREET 1: 1300 SW SIXTH AVE STREET 2: P O BOX 1350 CITY: PORTLAND STATE: OR ZIP: 97207 BUSINESS PHONE: 5032223600 MAIL ADDRESS: STREET 1: 1300 SW SIXTH AVE STREET 2: P O BOX 1350 CITY: PORTLAND STATE: OR ZIP: 92707 FILER: COMPANY DATA: COMPANY CONFORMED NAME: COLUMBIA HIGH YIELD FUND INC CENTRAL INDEX KEY: 0000908836 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 931117636 STATE OF INCORPORATION: OR FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-07834 FILM NUMBER: 98702871 BUSINESS ADDRESS: STREET 1: 1300 SW SIXTH AVE STREET 2: P O BOX 1350 CITY: PORTLAND STATE: OR ZIP: 97207 BUSINESS PHONE: 5032223600 MAIL ADDRESS: STREET 1: 1300 SW SIXTH AVE STREET 2: P O BOX 1350 CITY: PORTLAND STATE: OR ZIP: 92707 FILER: COMPANY DATA: COMPANY CONFORMED NAME: COLUMBIA REAL ESTATE EQUITY FUND INC CENTRAL INDEX KEY: 0000916900 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 931131979 STATE OF INCORPORATION: OR FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-08256 FILM NUMBER: 98702872 BUSINESS ADDRESS: STREET 1: 1300 SW SIXTH AVE STREET 2: PO BOX 1350 CITY: PORTLAND STATE: OR ZIP: 97207 BUSINESS PHONE: 5032223600 MAIL ADDRESS: STREET 1: 1300 SW SIXTH AVE STREET 2: PO BOX 1350 CITY: PORTLAND STATE: OR ZIP: 97207 FILER: COMPANY DATA: COMPANY CONFORMED NAME: COLUMBIA SMALL CAP FUND INC CENTRAL INDEX KEY: 0001016510 STANDARD INDUSTRIAL CLASSIFICATION: [] STATE OF INCORPORATION: OR FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-07671 FILM NUMBER: 98702873 BUSINESS ADDRESS: STREET 1: 1300 SW SIXTH AVE STREET 2: P O BOX 1350 CITY: PORTLAND STATE: OR ZIP: 97207 BUSINESS PHONE: 5032223600 MAIL ADDRESS: STREET 1: 1300 SW SIXTH AVE STREET 2: P O BOX 1350 CITY: PORTLAND STATE: OR ZIP: 92707 N-30D 1 N-30D [LOGO] COLUMBIA FUNDS 1998 SEMI-ANNUAL 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 Balanced Fund ============================================ Columbia Daily Income Company ============================================ Columbia U.S. Government Securities Fund ============================================ Columbia Fixed Income Securities Fund ============================================ Columbia Municipal Bond Fund ============================================ Columbia High Yield Fund DEAR COLUMBIA INVESTOR, We are pleased to present the 1998 Columbia Funds Semi-Annual Shareholder Report. Included inside are updates to Fund performance and portfolio holdings, along with summaries of investment activity in the first half of the year. Preceding the Fund updates is an overview of the economy and financial markets, which you may find useful when evaluating your investments. In these times of volatile stock performance, our commitment to careful, quality investment management remains a priority. We continue to seek opportunities for above-average returns while managing risk. This report is just one of many ways in which we attempt to communicate with our shareholders, and we encourage you to use this information to learn more about how your money is managed at Columbia. If you have questions, please call one of our Investor Services Representatives at 1-800-547-1707 or (503) 222-3600 in Portland. E-mail inquiries may also be sent to ASKCOLUMBIA@COLUMBIAFUNDS.COM. As always, we appreciate the trust you have placed in Columbia Funds and look forward to helping you achieve your investment goals in the months and years to come. Sincerely, [SIGNATURE] [SIGNATURE] John A. Kemp Thomas L. Thomsen CHAIRMAN AND CHIEF EXECUTIVE OFFICER PRESIDENT AND CHIEF INVESTMENT OFFICER COLUMBIA FUNDS MANAGEMENT COMPANY COLUMBIA FUNDS MANAGEMENT COMPANY FRONT COVER FEATURES A PHOTOGRAPH OF THE 80-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. TABLE OF CONTENTS ----------------------------------------------------------------- SEMI-ANNUAL REPORT, JUNE 30, 1998 AN OVERVIEW OF THE MARKETS.....................................................1 COLUMBIA COMMON STOCK FUND Investment Review............................................................3 Financial Highlights........................................................15 Schedule of Investments.....................................................27 Statement of Assets and Liabilities.........................................66 Statement of Operations.....................................................69 Statements of Changes in Net Assets.........................................72 COLUMBIA GROWTH FUND Investment Review............................................................4 Financial Highlights........................................................16 Schedule of Investments.....................................................29 Statement of Assets and Liabilities.........................................66 Statement of Operations.....................................................69 Statements of Changes in Net Assets.........................................72 COLUMBIA INTERNATIONAL STOCK FUND Investment Review............................................................5 Financial Highlights........................................................17 Schedule of Investments.....................................................31 Statement of Assets and Liabilities.........................................66 Statement of Operations.....................................................69 Statements of Changes in Net Assets.........................................72 COLUMBIA SPECIAL FUND Investment Review............................................................6 Financial Highlights........................................................18 Schedule of Investments.....................................................35 Statement of Assets and Liabilities.........................................66 Statement of Operations.....................................................69 Statements of Changes in Net Assets.........................................73 COLUMBIA SMALL CAP FUND Investment Review............................................................7 Financial Highlights........................................................19 Schedule of Investments.....................................................37 Statement of Assets and Liabilities.........................................67 Statement of Operations.....................................................70 Statements of Changes in Net Assets.........................................73 COLUMBIA REAL ESTATE EQUITY FUND Investment Review............................................................8 Financial Highlights........................................................20 Schedule of Investments.....................................................39 Statement of Assets and Liabilities.........................................67 Statement of Operations.....................................................70 Statements of Changes in Net Assets.........................................73 COLUMBIA BALANCED FUND Investment Review............................................................9 Financial Highlights........................................................21 Schedule of Investments.....................................................41 Statement of Assets and Liabilities.........................................67 Statement of Operations.....................................................70 Statements of Changes in Net Assets.........................................74 COLUMBIA DAILY INCOME COMPANY Investment Review...........................................................10 Financial Highlights........................................................22 Schedule of Investments.....................................................47 Statement of Assets and Liabilities.........................................67 Statement of Operations.....................................................70 Statements of Changes in Net Assets.........................................74 COLUMBIA U.S. GOVERNMENT SECURITIES FUND Investment Review...........................................................11 Financial Highlights........................................................23 Schedule of Investments.....................................................50 Statement of Assets and Liabilities.........................................68 Statement of Operations.....................................................71 Statements of Changes in Net Assets.........................................74 COLUMBIA FIXED INCOME SECURITIES FUND Investment Review...........................................................12 Financial Highlights........................................................24 Schedule of Investments.....................................................51 Statement of Assets and Liabilities.........................................68 Statement of Operations.....................................................71 Statements of Changes in Net Assets.........................................75 COLUMBIA MUNICIPAL BOND FUND Investment Review...........................................................13 Financial Highlights........................................................25 Schedule of Investments.....................................................55 Statement of Assets and Liabilities.........................................68 Statement of Operations.....................................................71 Statements of Changes in Net Assets.........................................75 COLUMBIA HIGH YIELD FUND Investment Review...........................................................14 Financial Highlights........................................................26 Schedule of Investments.....................................................63 Statement of Assets and Liabilities.........................................68 Statement of Operations.....................................................71 Statements of Changes in Net Assets.........................................75 NOTES TO FINANCIAL STATEMENTS.................................................76 COLUMBIA FUNDS P.O. BOX 1350 PORTLAND, OR 97207-1350 222-3606 1-800-547-1707 WWW.COLUMBIAFUNDS.COM AN OVERVIEW OF THE MARKETS ----------------------------------------------------------------- A LOOK AT THE FIRST HALF While propelled to new highs during the first half of the year, the stock market exhibited considerable volatility in the second quarter, amid renewed concerns about the deepening financial crisis in Asia and expectations for slower corporate profit growth. In spite of these worries, the S&P 500 rose 17.71% for the six months ended June 30, 1998. Although the S&P 500 continued to advance, the breadth of the market deteriorated significantly late in the half, with large retail, health care, technology, and finance stocks posting the strongest returns, while REITs, basic material, energy, transportation and utility names, as well as smaller cap companies, lagged. Optimism from early in the year was tempered in the second quarter as evidence began to mount that problems overseas could have a substantial negative impact on the U.S. economy. By mid-June, the Japanese yen had weakened appreciably. Fearing that the sliding yen would trigger devaluations in other Asian currencies, the U.S. and Japanese governments joined forces to intervene in the currency markets, stabilizing the yen for now. Despite moves by the Japanese government to reform the financial system, there is unlikely to be a quick fix for the economic downturn in Japan, and this may hinder a recovery in other Asian countries. Europe seems to be a bright spot internationally. Many European companies have restructured their business operations, cutting costs and increasing profits. The financial crisis in Russia has little impact on U.S. trade and capital flows, but much more on European countries. World economic growth is slowing, which has strong implications for U.S. markets because corporate earnings have become increasingly dependent on revenues derived from overseas markets. The financial crisis in Asia has caused a sharp worsening in the trade balance. This, together with high inventories and a strong dollar, signals potential earnings trouble for some business sectors. These concerns have contributed to a lowering of corporate earnings estimates for the second quarter and are expected to lead to lower estimates for the remainder of 1998 and 1999. INTERNATIONAL MARKET PERFORMANCE JANUARY-JUNE 1998 EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC France 40.2% Germany 38.8% United Kingdom 13.6% Italy 35.5% Japan 3.7% Brazil -5.1% Mexico -18.1% Hong Kong -20.3% Thailand -28.3% S&P 500 17.7% Source - Bloomberg
POSITIVE FACTORS STILL INTACT Nevertheless, many positive fundamentals remain in place. Although inflationary pressures in the service sector have risen somewhat and the Consumer Price Index has moved modestly higher, inflation remains quite low. The Fed is watching economic indicators closely, but absent any significant change in economic activity, is widely expected to keep short-term interest rates around current levels. Long-term rates are near 27-year lows. While corporate earnings growth is expected to slow, it should remain modestly positive for the year. Apart from the near-term uncertainty, the crisis in Southeast Asia is having some stimulative effects in the U.S., with low commodity prices and cheaper imports contributing to lower inflation. Additionally, foreign investments in the U.S. financial markets have increased as investors seek a safe haven. 1 AN OVERVIEW OF THE MARKETS - -------------------------------------------------------------------------------- CONSUMER PRICE INDEX OVER LAST 30 YEARS EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC Dec-68 4.71 Jan-69 4.69 Feb-69 4.68 Mar-69 5.25 Apr-69 5.52 May-69 5.51 Jun-69 5.48 Jul-69 5.44 Aug-69 5.43 Sep-69 5.7 Oct-69 5.67 Nov-69 5.93 Dec-69 5.9 Jan-70 6.16 Feb-70 6.42 Mar-70 6.09 Apr-70 6.06 May-70 6.04 Jun-70 6.01 Jul-70 5.71 Aug-70 5.69 Sep-70 5.66 Oct-70 5.63 Nov-70 5.6 Dec-70 5.57 Jan-71 5.28 Feb-71 4.72 Mar-71 4.44 Apr-71 4.16 May-71 4.4 Jun-71 4.38 Jul-71 4.37 Aug-71 4.36 Sep-71 4.08 Oct-71 3.81 Nov-71 3.54 Dec-71 3.27 Jan-72 3.26 Feb-72 3.76 Mar-72 3.76 Apr-72 3.5 May-72 3.49 Jun-72 3.23 Jul-72 2.96 Aug-72 2.96 Sep-72 2.95 Oct-72 3.19 Nov-72 3.18 Dec-72 3.41 Jan-73 3.64 Feb-73 3.86 Mar-73 4.83 Apr-73 5.3 May-73 5.53 Jun-73 6 Jul-73 5.74 Aug-73 7.4 Sep-73 7.36 Oct-73 8.06 Nov-73 8.25 Dec-73 8.94 Jan-74 9.6 Feb-74 10 Mar-74 10.14 Apr-74 10.07 May-74 10.71 Jun-74 10.86 Jul-74 11.54 Aug-74 10.89 Sep-74 11.95 Oct-74 11.84 Nov-74 12.2 Dec-74 12.1 Jan-75 11.75 Feb-75 11.21 Mar-75 10.46 Apr-75 10.19 May-75 9.26 Jun-75 9.18 Jul-75 9.53 Aug-75 8.62 Sep-75 7.91 Oct-75 7.65 Nov-75 7.38 Dec-75 7.13 Jan-76 6.69 Feb-76 6.27 Mar-76 6.06 Apr-76 5.85 May-76 6.21 Jun-76 5.98 Jul-76 5.56 Aug-76 5.72 Sep-76 5.49 Oct-76 5.46 Nov-76 5.06 Dec-76 5.04 Jan-77 5.2 Feb-77 6.08 Mar-77 6.43 Apr-77 6.95 May-77 6.74 Jun-77 6.7 Jul-77 6.67 Aug-77 6.63 Sep-77 6.42 Oct-77 6.39 Nov-77 6.71 Dec-77 6.68 Jan-78 6.81 Feb-78 6.24 Mar-78 6.38 Apr-78 6.5 May-78 7.14 Jun-78 7.44 Jul-78 7.73 Aug-78 7.86 Sep-78 8.48 Oct-78 8.93 Nov-78 8.87 Dec-78 8.99 Jan-79 9.25 Feb-79 9.84 Mar-79 10.25 Apr-79 10.49 May-79 10.7 Jun-79 11.08 Jul-79 11.45 Aug-79 11.84 Sep-79 11.88 Oct-79 12.07 Nov-79 12.59 Dec-79 13.25 Jan-80 13.87 Feb-80 14.16 Mar-80 14.59 Apr-80 14.59 May-80 14.43 Jun-80 14.27 Jul-80 13.15 Aug-80 12.89 Sep-80 12.77 Oct-80 12.63 Nov-80 12.63 Dec-80 12.35 Jan-81 11.79 Feb-81 11.39 Mar-81 10.61 Apr-81 10.14 May-81 9.79 Jun-81 9.7 Jul-81 10.77 Aug-81 10.82 Sep-81 10.97 Oct-81 10.27 Nov-81 9.58 Dec-81 8.91 Jan-82 8.26 Feb-82 7.61 Mar-82 6.88 Apr-82 6.62 May-82 6.91 Jun-82 7.18 Jul-82 6.56 Aug-82 5.97 Sep-82 4.94 Oct-82 5.03 Nov-82 4.48 Dec-82 3.83 Jan-83 3.71 Feb-83 3.48 Mar-83 3.59 Apr-83 4 May-83 3.44 Jun-83 2.47 Jul-83 2.36 Aug-83 2.46 Sep-83 2.76 Oct-83 2.75 Nov-83 3.16 Dec-83 3.79 Jan-84 4.29 Feb-84 4.69 Mar-84 4.89 Apr-84 4.55 May-84 4.33 Jun-84 4.33 Jul-84 4.31 Aug-84 4.3 Sep-84 4.28 Oct-84 4.27 Nov-84 4.15 Dec-84 4.04 Jan-85 3.53 Feb-85 3.51 Mar-85 3.69 Apr-85 3.68 May-85 3.67 Jun-85 3.76 Jul-85 3.55 Aug-85 3.35 Sep-85 3.25 Oct-85 3.24 Nov-85 3.61 Dec-85 3.79 Jan-86 3.97 Feb-86 3.2 Mar-86 2.25 Apr-86 1.59 May-86 1.58 Jun-86 1.67 Jul-86 1.58 Aug-86 1.58 Sep-86 1.76 Oct-86 1.57 Nov-86 1.28 Dec-86 1.1 Jan-87 1.46 Feb-87 2.1 Mar-87 3.02 Apr-87 3.77 May-87 3.94 Jun-87 3.84 Jul-87 4.02 Aug-87 4.38 Sep-87 4.18 Oct-87 4.36 Nov-87 4.43 Dec-87 4.43 Jan-88 4.13 Feb-88 3.93 Mar-88 3.83 Apr-88 3.81 May-88 3.88 Jun-88 3.96 Jul-88 4.13 Aug-88 4.02 Sep-88 4.28 Oct-88 4.35 Nov-88 4.25 Dec-88 4.41 Jan-89 4.57 Feb-89 4.82 Mar-89 4.97 Apr-89 5.29 May-89 5.39 Jun-89 5.38 Jul-89 4.95 Aug-89 4.7 Sep-89 4.3 Oct-89 4.6 Nov-89 4.7 Dec-89 4.6 Jan-90 5.2 Feb-90 5.3 Mar-90 5.2 Apr-90 4.7 May-90 4.4 Jun-90 4.7 Jul-90 4.8 Aug-90 5.6 Sep-90 6.2 Oct-90 6.3 Nov-90 6.3 Dec-90 6.1 Jan-91 5.7 Feb-91 5.3 Mar-91 4.9 Apr-91 4.9 May-91 5 Jun-91 4.7 Jul-91 4.4 Aug-91 3.8 Sep-91 3.4 Oct-91 2.9 Nov-91 3 Dec-91 3.1 Jan-92 2.6 Feb-92 2.8 Mar-92 3.2 Apr-92 3.2 May-92 3 Jun-92 3.1 Jul-92 3.2 Aug-92 3.1 Sep-92 2.6 Oct-92 3 Nov-92 3.2 Dec-92 2.9 Jan-93 3.3 Feb-93 3.3 Mar-93 3.1 Apr-93 3.2 May-93 3.2 Jun-93 3 Jul-93 2.8 Aug-93 2.8 Sep-93 2.7 Oct-93 2.7 Nov-93 2.7 Dec-93 2.7 Jan-94 2.5 Feb-94 2.5 Mar-94 2.5 Apr-94 2.4 May-94 2.3 Jun-94 2.5 Jul-94 2.8 Aug-94 2.9 Sep-94 3 Oct-94 2.6 Nov-94 2.7 Dec-94 2.7 Jan-95 2.8 Feb-95 2.9 Mar-95 2.9 Apr-95 3.1 May-95 3.2 Jun-95 3 Jul-95 2.9 Aug-95 2.6 Sep-95 2.5 Oct-95 2.8 Nov-95 2.6 Dec-95 2.5 Jan-96 2.7 Feb-96 2.7 Mar-96 2.8 Apr-96 2.9 May-96 2.9 Jun-96 2.8 Jul-96 3 Aug-96 2.9 Sep-96 3 Oct-96 3 Nov-96 3.3 Dec-96 3.3 Jan-97 3 Feb-97 3 Mar-97 2.8 Apr-97 2.5 May-97 2.2 Jun-97 2.3 Jul-97 2.2 Aug-97 2.2 Sep-97 2.2 Oct-97 2.1 Nov-97 1.8 Dec-97 1.7 Jan-98 1.6 Feb-98 1.4 Mar-98 1.4 Apr-98 1.4 May-98 1.7 Jun-98 1.7 Source - Bloomberg
FOCUS ON DEPENDABLE GROWTH Moderating economic growth and substantial risk from events overseas have led us to emphasize companies with superior earnings growth prospects and lower vulnerability to negative surprises. We expect larger companies with dominant competitive positions and earnings derived primarily from the U.S. or Europe to be most likely to deliver solid growth. Columbia's focus is on stocks we expect to be favorably influenced by our current investment themes, in particular, "Aging of America," "Technology Age," and continued merger and acquisition activity. The demographic trend of "Aging of America" favors the health care, financial services and leisure sectors that sell products to the fastest growing segment of the population. Companies poised to profit from the "Technology Age" theme include those in the telecommunications, computer software, networking and internet industries. Additionally, due to unflagging consumer demand, we have kept the portfolios overweighted in retail stocks compared to the broader market. INFLOWS INCREASE TO BOND FUNDS As stock market volatility and economic uncertainty have increased, inflows to bond mutual funds have picked up. Although interest rates are at historic lows, inflation-adjusted yields on bonds (real rates) look attractive, well in excess of the long-term average. The long-term deflationary trend of prices is expected to continue, with inflation rising quite modestly this year. The Treasury's reduced demand for funds, as the federal budget moves into a surplus, is a long-term positive for the bond market. The surge in corporate debt issuance so far this year may wane if corporate capital spending declines on weakening profits. New corporate debt has easily offset the reduced Treasury offerings year-to-date. So that you may evaluate how the Columbia Funds have performed given this economic and financial market backdrop, the following pages contain discussions of the Funds' investment activity for the six months ending June 30, 1998, along with graphs illustrating the growth of $10,000 over various time periods. Each Fund compares its performance to a relevant benchmark. Unlike the Funds, however, these benchmark indices are not actively managed and have no operating expenses, porfolio transaction costs or cash flows. At Columbia, our goal has always been to provide you with the best long-term returns possible, with an emphasis on managing investment risk. We remain committed to meeting your financial objectives and we appreciate your continuing trust. THE INVESTMENT TEAM COLUMBIA FUNDS MANAGEMENT COMPANY AUGUST 1998 2 INVESTMENT REVIEW - -------------------------------------------------------------------------------- [LOGO] - --------------------------------------------- --------------------------------------------- -- COLUMBIA COMMON STOCK FUND -- -------------------------------- For the six months ended June 30, 1998, Columbia Common Stock Fund had a total return of 15.68%. While marked by increased volatility, the stock market was propelled to new highs during the period, fueled by such favorable conditions as low inflation, moderate economic growth and low interest rates. In this environment, there were some sectors that experienced better earnings growth than the broader market, including technology, consumer cyclical and staple stocks. Our continued emphasis in these areas, as well as in stocks with consistent earnings growth, benefited Fund performance during the period. TOP TEN HOLDINGS
% of Net Assets General Electric Co. 3.0 Pfizer, Inc. 2.9 Microsoft Corp. 2.8 Tyco International Ltd. 2.7 American Home Products Corp. 2.1 Coca-Cola Co. 2.0 Warner-Lambert Co. 1.9 Meyer (Fred), Inc. 1.9 Fannie Mae 1.8 Tandy Corp. 1.8
As of June 30, 1998 As always, investment themes derived from our view of the macroeconomic environment played a significant role in the portfolio. For example, the "Aging of America" theme hinges on the changing spending patterns of the maturing Baby Boom generation. This demographic shift provides a tailwind for companies that provide products and services to aging Americans. Another important investment theme is the "Technology Age," which attempts to capture the long-term changes occurring in technology and related sectors. Our current strategy is to concentrate on companies poised to profit from corporate spending priorities in internet/e-commerce, telecommunications deregulation, the Year 2000 issue and products that satisfy the continuing need for growth and productivity. SECTORS OF EMPHASIS
% of Net Assets Technology 17.1 Finance 16.6 Health Care 14.2 Consumer Staples 10.8 Consumer Non-Durables 10.0
As of June 30, 1998 Near term, we anticipate continuing low inflation, with earnings growth becoming more difficult to attain. This is especially true in light of the uncertainty associated with the Asian currency crisis. With this in mind, we are bypassing cyclical stocks in favor of reasonably valued, domestic-oriented companies that offer more dependable earnings growth prospects. GROWTH OF $10,000 SINCE INCEPTION EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
COLUMBIA COMMON STOCK FUND S&P 500 10/1/91 $10,000 $10,000 12/31/91 11,025 10,838 12/31/92 12,126 11,664 12/31/93 14,120 12,840 12/31/94 14,411 13,009 12/31/95 18,855 17,898 12/31/96 22,760 22,007 12/31/97 28,534 29,349 6/30/98 33,003 34,547 Average Annual Total Returns as of June 30, 1998 CCSF S&P 500 1 Year 24.60% 30.17% 5 Years 20.10% 23.08% Since Inception 19.20% 20.00% Past Performance is not predictive of future results.
3 INVESTMENT REVIEW - -------------------------------------------------------------------------------- [LOGO] - ------------------------------------------------- ------------------------------------------------- -- COLUMBIA GROWTH FUND -- -------------------------- Amid increased market volatility, Columbia Growth Fund returned 21.55% for the six months ended June 30, 1998, outperforming the S&P 500, which returned 17.71% for the same period. The Fund's performance was supported by high returns from Warnaco, Cisco Systems, Pfizer, and Microsoft, among others. Themes driving stock selection included a focus on industries that stand to benefit from the demographic trend of the aging of America and those that are poised to profit from technological change, including internet commerce. TOP TEN HOLDINGS
% of Net Assets Cisco Systems, Inc. 3.2 Tyco International Ltd. 3.2 Microsoft Corp. 3.2 Tandy Corp. 2.8 Pfizer, Inc. 2.3 Morgan Stanley, Dean Witter, Discover & Co. 2.2 Abercrombie & Fitch Co. (Class A) 2.1 Warner-Lambert Co. 2.1 Computer Sciences Corp. 2.0 Warnaco Group, Inc. (Class A) 2.0
As of June 30, 1998 The trend of lower interest rates has stimulated mortgage refinancing, and a rise in personal wealth (due to higher stock prices) has increased consumer spending. Anticipating strength in consumer spending, the Fund increased its exposure to domestic and consumer issues in late 1997, and this benefited performance during 1998. Our continuing analysis of the investment environment has also resulted in an emphasis on health care, consumer staples, retail, business, and segments of technology and financial stocks. SECTORS OF EMPHASIS
% of Net Assets Technology 19.3 Finance 18.9 Consumer Non-Durables 14.2 Health Care 13.9 Consumer Staples 8.1
As of June 30, 1998 While renewed concerns about the Asian financial crisis and continued expectations for slower corporate profit growth contributed to greater market volatility in the second quarter, many favorable conditions still exist. Strong cash flows, sound monetary policy, strong balance sheets, low inflation and falling interest rates all help support continued expansion of the stock market, the economy and corporate earnings, but at a slower pace. As always, the Fund seeks long-term capital appreciation by investing primarily in common stocks believed to offer above average earnings growth. GROWTH OF $10,000 OVER 20 YEARS EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
COLUMBIA GROWTH FUND S&P 500 6/30/78 $10,000 $10,000 6/30/79 11,282 11,340 6/30/80 14,176 13,285 6/30/81 19,580 16,010 6/30/82 17,680 14,167 6/30/83 34,434 22,793 6/30/84 28,123 21,722 6/30/85 37,890 28,406 6/30/86 48,862 38,552 6/30/87 56,294 48,240 6/30/88 55,776 44,916 6/30/89 64,650 54,120 6/30/90 75,531 63,033 6/30/91 79,912 67,729 6/30/92 88,327 76,805 6/30/93 108,774 87,273 6/30/94 110,885 88,504 6/30/95 137,075 111,577 6/30/96 174,045 140,598 6/30/97 215,763 189,372 6/30/98 288,510 246,488 Average Annual Total Returns as of June 30, 1998 CGF S&P 500 1 Year 33.70% 30.17% 5 Years 21.54% 23.08% 10 Years 17.86% 18.56% 20 Years 18.30% 17.38% Past Performance is not predictive of future results.
4 INVESTMENT REVIEW - -------------------------------------------------------------------------------- [LOGO] - ------------------------------------------ ------------------------------------------ -- COLUMBIA INTERNATIONAL STOCK FUND -- --------------------------------------- For the six months ended June 30, 1998, the Fund posted a total return of 13.07%. After a slow start at the beginning of the year, Columbia International Stock Fund had a good second quarter, strongly outperforming the FT/S&P Euro-Pacific Index. During this time, we reduced the Fund's holdings in Japan in favor of investments in the better performing European markets. This was an important contributor to performance during the second quarter. TOP TEN HOLDINGS
% of Net Assets Aegon NV 3.0 Compass Group plc 2.4 Mannesmann AG 2.3 Banco Bilbao Vizcaya SA 2.1 Renault SA 1.9 France Telecom SA (ADR) 1.8 The Bank of Tokyo-Mitsubishi Ltd., ADR 1.7 British Telecommunications plc 1.7 Glaxo Wellcome plc 1.7 Credito Italiano S.P.A. 1.7
As of June 30, 1998 European markets have been responding well to the impending European Monetary Union, which will introduce a single currency for all participating countries in January 1999. Preparation for the EMU has fostered low interest rates and disciplined fiscal policies, while providing a strong platform for renewed economic growth in the region. Furthermore, individual investors throughout Europe are participating in the markets more fully than ever before, taking advantage of new tax-favored savings programs similar to the American IRA. Most importantly, economic growth continues to accelerate, and we expect that this trend will continue to support higher European stock prices for the balance of the year. COUNTRIES OF EMPHASIS
% of Net Assets United Kingdom 23.9 Japan 16.4 France 10.6 Germany 7.4 Spain 7.3 Netherlands 5.8 Italy 4.5 Switzerland 4.0
As of June 30, 1998 Although the Japanese and Southeast Asian markets experienced surprisingly sharp gains in the first quarter, continued economic decline in Southeast Asia and stagnation/deflation in Japan caused emerging markets to retreat dramatically during the second quarter. Meanwhile, under pressure from other countries, the Japanese government appears to be preparing legislation to resolve its banking crisis. With some important policy changes, this depressed market could rebound. We plan to carefully watch developments unfold, but a relatively low exposure to Japan seems appropriate for now. GROWTH OF $10,000 SINCE INCEPTION EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
COLUMBIA INTERNATIONAL STOCK FUND FT/S&P EURO-PAC S&P 500 10/1/92 $10,000 $10,000 $10,000 12/31/92 $10,060 $9,628 $10,503 12/31/93 $13,417 $12,665 $11,562 12/31/94 $13,086 $13,822 $11,714 12/31/95 $13,760 $15,290 $16,117 12/31/96 $16,042 $16,180 $19,817 12/31/97 $17,882 $16,144 $26,428 6/30/98 $20,218 $18,557 $31,114 Average Annual Total Returns as of June 30, 1998 CISF S&P 500 FT/S&P Euro-Pac 1 Year 7.10% 30.17% 3.65% 5 Years 13.26% 23.08% 9.24% Since Inception 13.15% 22.03% 11.46% Past Performance is not predictive of future results.
5 INVESTMENT REVIEW - -------------------------------------------------------------------------------- [LOGO] - ------------------------------------------------- ------------------------------------------------- -- COLUMBIA SPECIAL FUND -- --------------------------- While the stock market started the year off sharply, small and mid-cap stocks gave up some of their early gains during a volatile second quarter. For the six months ended June 30, 1998, Columbia Special Fund was up 8.64%, compared to 4.93% for the Russell 2000. Throughout the period, we focused on industries that tend to show consistent earnings growth, especially those with a domestic orientation and limited exposure to Asia. This strategy was shaped by our expectations for a deceleration in corporate profits and increased risk of earnings disappointments. Business and consumer services, consumer nondurables and certain health care companies were strong performers during the period, while REITs vastly underperformed the broader equity market. TOP TEN HOLDINGS
% of Net Assets American Stores Co. 4.0 Abercrombie & Fitch Co. (Class A) 3.2 Meyer (Fred), Inc. 2.7 AnnTaylor Stores Corp. 2.7 ESC Medical Systems Ltd. 2.2 Service Corporation Int'l 2.2 Flserv, Inc. 2.2 St. John Knits, Inc. 2.2 ResMed., Inc. 2.1 Furniture Brands International, Inc. 2.0
As of June 30, 1998 In trading activity, we took profits in a number of apparel retailers and increased our emphasis on companies that manufacture and sell products for the home. We believe that a favorable housing market and greater consumer interest in home furnishings will benefit these stocks. We also increased our holdings in water-related companies, as more money is being spent to upgrade the quality of municipal water systems. Also, we increased our holdings in technology, using the proceeds from the positions we liquidated in the underperforming REIT sector to fund our technology additions. Finally, we refocused our finance sector weightings away from regional bank stocks to insurance stocks, which show potential for having above-market earnings growth. SECTORS OF EMPHASIS
% of Net Assets Consumer Non-Durables 24.4 Business & Consumer Services 14.5 Health Care 13.2 Consumer Staples 12.7
As of June 30, 1998 Looking ahead, we believe that the portfolio is well structured for an enviroment in which economic growth is slowing, profit growth is more difficult to attain, commodity prices are under pressure, and inflation and interest rates remain low. GROWTH OF $10,000 OVER 10 YEARS EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
COLUMBIA SPECIAL FUND S&P 500 RUSSELL 2000 6/30/88 $10,000 $10,000 $10,000 6/30/89 $13,289 $12,049 $11,280 6/30/90 $15,791 $14,033 $11,624 6/30/91 $15,862 $15,079 $11,767 6/30/92 $18,469 $17,100 $13,480 6/30/93 $23,813 $19,430 $16,985 6/30/94 $25,771 $19,704 $17,724 6/30/95 $31,013 $24,841 $21,288 6/30/96 $39,625 $31,302 $26,374 6/30/97 $43,013 $42,161 $30,681 6/30/98 $48,986 $54,855 $35,745 Average Annual Total Returns as of June 30, 1998 CSF S&P 500 Russell 2000 1 Year 13.88% 30.17% 16.51% 5 Years 15.52% 23.08% 16.05% 10 Years 17.22% 18.56% 13.59% Past Performance is not predictive of future results.
6 INVESTMENT REVIEW - -------------------------------------------------------------------------------- [LOGO] - ------------------------------------------------ ------------------------------------------------ -- COLUMBIA SMALL CAP FUND -- ----------------------------- As investors sought increased liquidity in a volatile stock market environment, small cap stocks lagged larger company issues. For the six months ended June 30, 1998, the Fund had a total return of 8.89%, significantly outperforming its benchmark index, the Russell 2000 at 4.93% for the same period. This compares to the S&P 500's total return of 17.71%. Early in the period, small cap stocks reached new highs, led by companies tied to the robust U.S. economy. Consumer cyclicals, such as retailers and providers of leisure products and services were especially strong, as were issues of certain technology companies, both of which we emphasized during the period. The Fund also benefited from reduced exposure to energy and energy services, as falling oil prices weighed heavily on the shares of companies in this sector. TOP TEN HOLDINGS
% of Net Assets PMT Services, Inc. 2.3 ESC Medical Systems Ltd. 2.2 Cerner Corp. 2.2 CKE Restaurants, Inc. 2.1 American Management Systems 2.1 Barr Laboratories, Inc. 2.0 Jones Pharma, Inc. 2.0 Williams-Sonoma, Inc. 1.9 Martin Marietta Materials 1.9 Ascend Communications 1.9
As of June 30, 1998 May ushered in a spate of new worries related to Asia and the prospects for corporate earnings, causing a downdraft in price/earnings multiples through the end of the first half of the year. However, there are a number of positive factors in place that could contribute to improved small cap performance. For example, earnings growth for small companies is currently quite strong and is starting to expand relative to the earning forecasts for companies in the S&P 500. Plus, low interest rates and a moderately growing economy tend to benefit the type of growth stocks we now favor in the Fund, since their earnings are less dependent on the economic cycle. SECTORS OF EMPHASIS
% of Net Assets Technology 22.5 Health Care 22.0 Business & Consumer Services 11.8 Consumer Non-Durables 10.1
As of June 30, 1998 As far as the future is concerned, we are focusing on companies that are expected to deliver above-average earnings growth. We are also evaluating "cyclical-growth" companies, such as those that manufacture semiconductors, for signs of a possible recovery in their fundamentals. Overall, we believe that relative valuations and earnings growth prospects in the small cap market are attractive based on historical ranges. GROWTH OF $10,000 SINCE INCEPTION EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
COLUMBIA SMALL CAP FUND RUSSELL 2000 10/1/96 $10,000 $10,000 12/31/96 $10,762 $10,520 3/31/97 $10,224 $9,976 6/30/97 $12,245 $11,593 9/30/97 $15,021 $13,318 12/31/97 $14,432 $12,872 3/31/98 $16,261 $14,167 6/30/98 $15,715 $13,507 Average Annual Total Returns as of June 30, 1998 CSCF Russell 2000 1 Year 28.34% 16.51% Since Inception 30.46% 19.34% Past Performance is not predictive of future results.
7 INVESTMENT REVIEW - -------------------------------------------------------------------------------- [LOGO] - ------------------------------------------ ------------------------------------------ -- COLUMBIA REAL ESTATE EQUITY FUND -- -------------------------------------- For the six months ended June 30, 1998, Columbia Real Estate Equity Fund had a total return of -4.34%. That compares to a total return of -5.03% for the NAREIT Index over the same period. REITs significantly lagged the broader equity market for the first half of the year. This underperformance was largely attributable to increasing concerns that the recent strong earnings growth enjoyed by REITs would slow sharply going forward, as real estate acquisitions become increasingly expensive and new development threatens the supply/demand balance for real estate. TOP TEN HOLDINGS
% of Net Assets Apartment Investment & Mgmt. Co. (Class A) 5.3 Equity Office Properties Trust 5.1 Excel Realty Trust, Inc. 4.1 Simon DeBartolo Group, Inc. 4.0 Mack-Cali Realty Corp. 3.8 Vornado Realty Trust 3.8 Cabot Industrial Trust 3.8 Public Storage, Inc. 3.8 Spieker Properties, Inc. 3.4 Security Capital Pacific Trust 3.4
As of June 30, 1998 Performance in the REIT market was led by the more defensive retail sector, where strong consumer spending bolstered fundamentals. The high growth office and lodging sectors lagged during the period -- evidence of investors' concerns about potential overbuilding and increasing vacancy rates. Throughout the period, however, we maintained a sizable weighting in the office sector, believing that the positive prospects for internal growth and industry consolidation in this sector remain intact. We believe that the current valuations for REITs reflect an overdiscounting by investors anticipating slower industry growth. Many REITs, in fact, are now trading at or below the underlying value of the real estate they own. We believe that these valuations are attractive and, along with rising dividend growth rates, may provide the opportunity for better performance in the months ahead. EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
PORTFOLIO COMPOSITION Apartments 16.1% Community Centers 12.1% Industrial 30.3% Lodging 1.1% Manufactured Homes 2.4% Office 15.8% Shopping Malls 8.6% Other 7.2% Cash 6.4% as of June 30, 1998
Our focus going forward will center on companies that can produce growth in a real estate environment that is reaching the mature stage of its business cycle. The management of the companies we seek for the portfolio will have demonstrated the ability to sustain healthy internal growth while adding value through selective development activity. GROWTH OF $10,000 SINCE INCEPTION EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
NATIONAL ASSOCIATION OF REAL ESTATE COLUMBIA REAL ESTATE EQUITY FUND TRUSTS 4/1/94 $10,000 $10,000 12/31/94 $10,176 $9,978 12/31/95 $11,892 $11,502 12/31/96 $16,446 $15,558 12/31/97 $20,515 $18,710 6/30/98 $19,624 $17,766 Average Annual Total Returns as of June 30, 1998 CREF NAREIT 1 Year 10.15% 8.04% Since Inception 17.41% 14.66% Past Performance is not predictive of future results.
8 INVESTMENT REVIEW - -------------------------------------------------------------------------------- [LOGO] - ------------------------------------------------ ------------------------------------------------ -- COLUMBIA BALANCED FUND -- ---------------------------- Columbia Balanced Fund posted a total return of 11.70% for the six months ended June 30, 1998. During this time, the stock market reached new highs, with the Dow Jones Industrial Average surpassing the 9000-point mark for the first time in April, thanks to such favorable conditions as low inflation, moderate economic growth and low interest rates. In this environment, certain sectors experienced better earnings growth than the broader market, including technology, consumer cyclical and staple stocks. Our continued emphasis in these areas, as well as in stocks with consistent earnings growth prospects, benefited Fund performance during the period. Lagging sectors, on the other hand, included REITs, energy and electric and gas utilities. TOP TEN STOCK HOLDINGS
% of Net Assets General Electric Co. 1.7 Microsoft Corp. 1.6 Tyco International Ltd 1.6 Pfizer, Inc. 1.4 Coca-Cola Co. 1.2 American Home Products 1.2 Warner-Lambert Co. 1.1 Bristol-Myers Squibb Co. 1.0 Service Corp. International 1.0 Tandy Corp. 1.0
As of June 30, 1998 Because we anticipate continuing low inflation with earnings growth becoming increasingly difficult to attain, we are avoiding cyclical stocks, which tend to rise quickly when the economy is on the upswing and fall when the economy turns down. Instead, we are seeking stocks with reasonable valuations, which offer more dependable earnings growth. On the fixed income side of the portfolio, bonds rallied as long-term Treasuries fell to a low of 5.62%. Although prices on most bonds increased during the period, corporate and mortgage-backed securities did not go up as much as Treasuries, presenting an opportunity to increase weightings in these sectors. EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
PORTFOLIO COMPOSITION Common Stocks 52.0% Fixed Income 45.6% Cash 2.4% as of June 30, 1998
While we do not anticipate much change in the low level of bond yields over the next few months, we believe bond yields will continue to offer value when compared to the rate of inflation. GROWTH OF $10,000 SINCE INCEPTION EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
COLUMBIA BALANCED FUND S&P 500 LEHMAN AGGREGATE 10/1/91 $10,000 $10,000 $10,000 12/31/91 $10,780 $10,838 $10,507 12/31/92 $11,738 $11,664 $11,285 12/31/93 $13,337 $12,840 $12,385 12/31/94 $13,350 $13,009 $12,023 12/31/95 $16,699 $17,898 $14,244 12/31/96 $18,666 $22,007 $14,761 12/31/97 $22,164 $29,349 $16,185 6/30/98 $24,753 $34,547 $16,823 Average Annual Total Returns as of June 30, 1998 CBF S&P 500 Lehman Aggregate 1 Year 19.76% 30.17% 10.54% 5 Years 14.23% 23.08% 6.88% Since Inception 14.26% 20.00% 7.95% Past Performance is not predictive of future results.
9 INVESTMENT REVIEW - -------------------------------------------------------------------------------- [LOGO] - -------------------------------------------- -------------------------------------------- -- COLUMBIA DAILY INCOME COMPANY -- ----------------------------------- Columbia Daily Income Company posted a total return of 2.52% for the six months ended June 30, 1998, comparing favorably to the rate of inflation, which was just .7% during the same period, as measured by the Consumer Price Index. The seven-day average yield of the Fund rose only slightly during the period, reflecting the stability of short-term rates right now. PORTFOLIO HIGHLIGHTS Current Yield 5.05% Compound Yield 5.18% Based on the 7 days ended June 30, 1998 Weighted Average Maturity 41.5 days As of June 30, 1998
With continued low inflation, the Federal Reserve Board has opted to leave short-term rates untouched for the past 15 months, despite a steadily growing economy. Economic growth has begun to slow, however, which should keep the Fed from increasing rates in the immediate future. As an example, annualized GDP growth for the second quarter is expected to slow dramatically from the very brisk pace of 5.4% reported for the first quarter. AT THIS TIME, MONEY MARKET YIELDS ARE VERY ATTRACTIVE RELATIVE TO THE EXPECTED RATE OF INFLATION. [LOGO] As always, the Fund invests only in high quality, short-term debt instruments and maintains a dollar-weighted average maturity of 30 to 50 days, providing a very liquid, low risk investment. GROWTH OF $10,000 OVER 10 YEARS EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
COLUMBIA DAILY INCOME COMPANY CONSUMER PRICE INDEX (INFLATION) 6/30/88 $10,000 $10,000 6/30/89 $10,849 $10,520 6/30/90 $11,742 $11,014 6/30/91 $12,563 $11,532 6/30/92 $13,117 $11,890 6/30/93 $13,464 $12,246 6/30/94 $13,830 $12,552 6/30/95 $14,525 $12,929 6/30/96 $15,274 $13,291 6/30/97 $16,036 $13,597 6/30/98 $16,867 $13,828 Average Annual Total Returns as of June 30, 1998 CDIC CPI 1 Year 5.18% 1.70% 5 Years 4.61% 2.46% 10 Years 5.37% 3.29% Past Performance is not predictive of future results.
10 INVESTMENT REVIEW - -------------------------------------------------------------------------------- [LOGO] - ------------------------------------------- ------------------------------------------- -- U.S. GOVERNMENT SECURITIES FUND -- ------------------------------------- Columbia U.S. Government Securities Fund posted a total return of 2.61% for the six months ended June 30, 1998. Interest rates across the entire yield curve declined during the period. The very low level of inflation and expectations for economic slowing convinced the Federal Reserve to leave short-term interest rates unchanged. However, this more positive backdrop for the bond market led to lower rates on short-term Treasuries, and the Fund benefited from some price appreciation over the period. EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
PORTFOLIO COMPOSITION Treasury/Agency Obligations 98.8% Cash 1.2% as of June 30, 1998
Annualized GDP growth for the second quarter is expected to slow dramatically versus the brisk pace of 5.4% reported for the first quarter. Further economic slowing could mitigate the need for the Federal Reserve Board to tighten monetary policy in the near term. In addition, the turmoil in Asia has increased uncertainty about the prospects for U.S. economic growth, which should also contribute to stable rates in the near term. PORTFOLIO HIGHLIGHTS Current Yield 4.76%
Based on the 30 days ended June 30, 1998 Weighted Averages Duration 1.9 years Maturity 2.1 years
As of June 30, 1998 As always, the Fund seeks preservation of capital and income by investing in direct obligations of the U.S. Government. These securities include Treasury bills, notes and bonds all having a maturity of three years or less. GROWTH OF $10,000 OVER 10 YEARS EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
COLUMBIA MERRILL U.S. LYNCH CONSUMER GOVERNMENT 1-3 PRICE SECURITIES TREASURY INDEX FUND INDEX (INFLATION) 6/30/88 $10,000 $10,000 $10,000 6/30/89 $10,735 $10,886 $10,520 6/30/90 $11,523 $11,779 $11,014 6/30/91 $12,678 $12,986 $11,532 6/30/92 $14,111 $14,339 $11,890 6/30/93 $15,151 $15,283 $12,246 6/30/94 $15,315 $15,529 $12,552 6/30/95 $16,329 $16,729 $12,929 6/30/96 $17,075 $17,642 $13,291 6/30/97 $18,083 $18,800 $13,597 6/30/98 $19,157 $20,078 $13,828 Average Annual Total Returns as of June 30, 1998 CUSG Merrill 1-3 1 Year 5.95% 6.81% 5 Years 4.81% 5.61% 10 Years 6.72% 7.22% Past Performance is not predictive of future results.
11 INVESTMENT REVIEW - -------------------------------------------------------------------------------- [LOGO] - -------------------------------------------------------------------------------- -- COLUMBIA FIXED INCOME SECURITIES FUND -- ------------------------------------------- The bond market rallied during the first half of the year, as long-term Treasury yields fell to a low of 5.62%. The strength of the bond market was largely attributable to a combination of favorable fundamental and technical factors. Low inflation and moderating economic growth provided a solid backdrop for low rates. In addition, the expected Federal budget surplus has reduced the Treasury's need to issue new bonds, thus reducing the overall supply as older bonds mature. The strong U.S. dollar, relatively high nominal interest rates and turmoil in Asian markets have prompted investors to favor dollar-denominated instruments, such as those we hold in the portfolio. For the six months ended June 30, 1998, Columbia Fixed Income Securities Fund posted a total return of 3.72%. EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
PORTFOLIO COMPOSITION Collateralized Mortgage Obligations 43.3% Corporate Bonds 27.5% Treasury/Agency Obligations 17.0% Mortgage Pass-Throughs 6.6% Asset Backed Securities 3.2% Cash 2.4% as of June 30, 1998
Although prices on most bonds increased during the period, corporates and mortgages did not go up as much as Treasuries. We believe these sectors represent value. To capitalize on this buying opportunity, we increased our weightings in both corporates and mortgages. While we do not anticipate much change in the low level of bond yields over the next few months, we believe yields will continue to offer value when compared to the rate of inflation. EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
PORTFOLIO QUALITY Treasury/Agency Obligations 56.4% Aaa 18.1% Aa 1.6% A 8.2% Baa 13.2% Ba 2.2% B 0.3% as of June 30, 1998 As rated by Moody's Investor Services
The Fund's credit quality remains high, and the average maturity and duration of the Fund are 6.3 years and 4.7 years, respectively, which is in line with the Fund's benchmark, the Lehman Aggregate Bond Index. GROWTH OF $10,000 OVER 10 YEARS EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
COLUMBIA FIXED CONSUMER INCOME PRICE SECURITIES LEHMAN INDEX FUND AGGREGATE (INFLATION) 6/30/88 $10,000 $10,000 $10,000 6/30/89 $11,222 $11,222 $10,520 6/30/90 $12,032 $12,103 $11,014 6/30/91 $13,260 $13,398 $11,532 6/30/92 $15,327 $15,280 $11,890 6/30/93 $17,278 $17,082 $12,246 6/30/94 $16,986 $16,860 $12,552 6/30/95 $19,097 $18,974 $12,929 6/30/96 $20,039 $19,927 $13,291 6/30/97 $21,708 $21,551 $13,597 6/30/98 $23,898 $23,819 $13,828 Average Annual Total Returns as of June 30, 1998 CFIS Lehman Aggregate 1 Year 10.08% 10.54% 5 Years 6.70% 6.88% 10 Years 9.10% 9.07% Past Performance is not predictive of future results.
12 INVESTMENT REVIEW - -------------------------------------------------------------------------------- [LOGO] - -------------------------------------------- -------------------------------------------- -- COLUMBIA MUNICIPAL BOND FUND -- ---------------------------------- Columbia Municipal Bond Fund's total return for the six months ended June 30, 1998 was 2.09%. Overall, municipal securities have tended to underperform the broader fixed income market as the national supply of municipal bonds has continued to exceed demand. The outlook improved in the second quarter, however, as yields on national municipal securities fell on declining interest rates, although not as much as Treasury bond yields. This makes the price of municipal bonds look relatively attractive on a historical basis (when yields fall, prices rise) compared to taxable bonds and inflation. EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
PORTFOLIO COMPOSITION State of Oregon General Obligations 8.1% Oregon General Obligation Bonds 18.6% Oregon Revenue Bonds 15.4% Oregon Other Bonds 2.9% Other Bonds 7.8% Oregon Insured Bonds 40.2% Oregon Pre-Refunded Bonds 5.6% Cash 1.4% as of June 30, 1998
The Oregon economy remains healthy, and increasing income growth in the last few years has led to strong demand for municipal bonds within the State. Unlike the national municipal market, the supply of new bonds in Oregon has been muted so far this year. However, the number of new issues may increase if interest rates stay at these low levels or fall further, prompting refinancing of existing debt. EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
PORTFOLIO QUALITY Aaa 56.0% Aa 24.2% A 13.2% Baa 1.2% Not Rated 5.4% as of June 30, 1998 As rated by Moody's Investors Services, Inc.
As always, the Fund maintains a high average credit quality and is broadly diversified across issuers within the State. We remain committed to providing shareholders with high, after-tax returns and a low level of both volatility and risk. GROWTH OF $10,000 OVER 10 YEARS EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
COLUMBIA LEHMAN CONSUMER MUNICIPAL GENERAL PRICE BOND OBLIGATION INDEX FUND BOND (INFLATION) 6/30/88 $10,000 $10,000 $10,000 6/30/89 $11,051 $10,938 $10,520 6/30/90 $11,607 $11,670 $11,014 6/30/91 $12,634 $12,636 $11,532 6/30/92 $13,838 $14,060 $11,890 6/30/93 $15,342 $15,701 $12,246 6/30/94 $15,256 $15,794 $12,552 6/30/95 $16,353 $17,092 $12,929 6/30/96 $17,269 $18,194 $13,291 6/30/97 $18,497 $19,701 $13,597 6/30/98 $19,913 $21,320 $13,828 Average Annual Total Returns as of June 30, 1998 CMBF Lehman G.O. 1 Year 7.67% 8.20% 5 Years 5.35% 6.31% 10 Years 7.13% 7.86% Past Performance is not predictive of future results.
13 INVESTMENT REVIEW - -------------------------------------------------------------------------------- [LOGO] - ----------------------------------------------- ----------------------------------------------- -- COLUMBIA HIGH YIELD FUND -- ------------------------------ Columbia High Yield Fund provided a total return of 4.45% during the six months ended June 30, 1998. After a strong first quarter, high yield bonds struggled a bit in the second quarter, as investors became increasingly concerned about the impact of the Asian crisis on U.S. economic growth and corporate earnings. In addition, high yield bonds were negatively impacted by the large supply of new deals brought to market during the second quarter. This environment prompted a flight to quality within the high yield market and increased the demand for junk bonds with higher credit ratings. This benefited Fund performance, due to our focus on higher quality issues in the high yield market. SECTORS OF EMPHASIS
% of Net Assets Entertainment & Media 24.6% Manufacturing 15.0% Health Care 8.0% Energy 6.8% Business & Consumer Services 6.1%
As of June 30, 1998 As corporate prices fluctuated throughout the period, we found attractive investment opportunities in several new issues. In early 1998, we purchased holdings in the aerospace sector. We believe the long-term prospects for the aerospace industry are favorable due to stronger demand for new aircraft and parts, as airline fleets around the world age and airline travel increases. We also purchased positions in the cable industry, based on several positive developments. Many cable companies are paying down their debt, clustering their systems, and upgrading the quality and capacity of plants and equipment -- while adding new services. Despite the expected slowdown in economic growth, the supply of new high yield bonds is expected to remain robust. With little concern about a recession, however, we believe that high yield bonds will perform reasonably well in the near term because of reduced risk of default and increasing demand for high yield bonds among both retail and institutional investors. For many, investing in higher quality junk bonds provides an efficient way to increase the yield of a fixed income portfolio while adding an acceptable level of risk. EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
PORTFOLIO QUALITY Ba 42.4% B 57.6% as of June 30, 1998 As rated by Moody's Investor Services, Inc.
The Fund's average effective maturity remains steady at 5.1 years. The Fund's duration averaged 4.32 years during the period. GROWTH OF $10,000 SINCE INCEPTION EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
COLUMBIA HIGH YIELD FUND SALOMON BB LIPPER HIGH YIELD BOND FUND INDEX 10/1/93 $10,000 $10,000 $10,000 12/31/93 $10,112 $10,185 $10,498 12/31/94 $10,019 $10,048 $10,113 12/31/95 $11,935 $12,321 $11,870 12/31/96 $13,060 $13,429 $13,373 12/31/97 $14,719 $15,142 $15,136 6/30/98 $15,372 $15,821 $15,859 Average Annual Total Returns as of June 30, 1998 CHYF Salomon BB Lipper HYBF 1 Year 11.23% 11.71% 12.11% Since Inception 9.58% 10.25% 10.31% Past Performance is not predictive of future results.
14 FINANCIAL HIGHLIGHTS ----------------------------------------------------------------- FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD [LOGO] - ---- ---- -- COLUMBIA COMMON STOCK FUND, INC. -- --------------------------------------
SIX MONTHS ENDED JUNE 30, 1998 (UNAUDITED)(1) 1997 1996 1995 1994 1993 ----- ----- ----- ----- ----- - --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $22.02 $19.26 $18.59 $15.16 $15.29 $14.04 - --------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income....... .09 .29 .25 .26 .27 .22 Net realized and unrealized gains on investments...... 3.36 4.58 3.61 4.38 .04 2.08 - --------------------------------------------------------------------------------------------------------------------------------- Total from investment operations.............. 3.45 4.87 3.86 4.64 .31 2.30 - --------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Dividends (from net investment income)........ (.08) (.27) (.23) (.26) (.25) (.21) Distributions (from capital gains).................... (1.84) (2.96) (.95) (.19) (.84) - --------------------------------------------------------------------------------------------------------------------------------- Total distributions....... (.08) (2.11) (3.19) (1.21) (.44) (1.05) - --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $25.39 $22.02 $19.26 $18.59 $15.16 $15.29 - --------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN.................. 15.68%(2) 25.37% 20.71% 30.84% 2.06% 16.44% RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in thousands).................. $921,259 $783,906 $536,760 $358,523 $124,263 $100,715 Ratio of expenses to average net assets.................. 0.76% 0.77% 0.76% 0.80% 0.84% 0.84% Ratio of net investment income to average net assets....... 0.74% 1.37% 1.32% 1.68% 1.82% 1.48% Portfolio turnover rate....... 157.34% 90.23% 111.39% 75.36% 64.21% 90.90% Average commission rate paid on portfolio transactions (3)......................... $0.0597 $0.0601 $0.0601
(1) Ratios and portfolio turnover rate are annualized. (2) Not annualized. (3) The average commission rate paid by the fund is computed by dividing the dollar amount of commissions paid during the period by the total number of shares purchased and sold during the period for which commissions were charged. - -------------------------------------------------------------------------------- 15 FINANCIAL HIGHLIGHTS ----------------------------------------------------------------- FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD [LOGO] - ---- ---- -- COLUMBIA GROWTH FUND, INC. -- --------------------------------
SIX MONTHS ENDED JUNE 30, 1998 (UNAUDITED)(1) 1997 1996 1995 1994 1993 ----- ----- ----- ----- ----- - -------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $34.34 $30.74 $29.84 $24.84 $26.38 $26.18 - -------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income....... .05 .19 .19 .31 .29 .16 Net realized and unrealized gains (losses) on investments............... 7.35 7.90 6.04 7.86 (.46) 3.24 - -------------------------------------------------------------------------------------------------------------------------------- Total from investment operations.............. 7.40 8.09 6.23 8.17 (.17) 3.40 - -------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Dividends (from net investment income)........ (.17) (.17) (.29) (.26) (.18) Distributions (from capital gains).................... (4.32) (5.14) (2.87) (1.11) (2.98) Distributions (in excess of capital gains)............ (.02) (.01) (.04) - -------------------------------------------------------------------------------------------------------------------------------- Total distributions....... -- (4.49) (5.33) (3.17) (1.37) (3.20) - -------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $41.74 $34.34 $30.74 $29.84 $24.84 $26.38 - -------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN.................. 21.55%(2) 26.32% 20.80% 32.98% -0.63% 13.01% RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in thousands).................. $1,690,358 $1,324,918 $1,064,100 $848,731 $591,694 $605,401 Ratio of expenses to average net assets.................. 0.66% 0.71% 0.71% 0.75% 0.81% 0.82% Ratio of net investment income to average net assets....... 0.29% 0.55% 0.63% 1.14% 1.12% 0.66% Portfolio turnover rate....... 112.84% 95.67% 75.49% 94.73% 79.28% 105.64% Average commission rate paid on portfolio transactions (3)......................... $0.0602 $0.0594 $0.0590
(1) Ratios and portfolio turnover rate are annualized. (2) Not annualized. (3) The average commission rate paid by the fund is computed by dividing the dollar amount of commissions paid during the period by the total number of shares purchased and sold during the period for which commissions were charged. - -------------------------------------------------------------------------------- 16 FINANCIAL HIGHLIGHTS ----------------------------------------------------------------- FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD [LOGO] - ---- ---- -- COLUMBIA INTERNATIONAL STOCK FUND, INC. -- ---------------------------------------------
SIX MONTHS ENDED JUNE 30, 1998 (UNAUDITED)(1) 1997 1996 1995 1994 1993 ----- ----- ----- ----- ----- - --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $13.70 $13.86 $13.07 $12.43 $12.96 $9.95 - --------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss).................... .03 .03 .03 .02 (.02) (.02) Net realized and unrealized gains (losses) on investments and foreign currency transactions..... 1.76 1.56 2.13 .62 (.30) 3.34 - --------------------------------------------------------------------------------------------------------------------------------- Total from investment operations.............. 1.79 1.59 2.16 .64 (.32) 3.32 - --------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Dividends (from net investment income)........ (.03) Dividends (in excess of net investment income)........ (.20) Distributions (from capital gains).................... (1.75) (1.14) (.21) (.31) - --------------------------------------------------------------------------------------------------------------------------------- Total distributions....... -- (1.75) (1.37) -- (.21) (.31) - --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $15.49 $13.70 $13.86 $13.07 $12.43 $12.96 - --------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN.................. 13.07%(2) 11.47% 16.59% 5.15% -2.47% 33.37% RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in thousands).................. $153,094 $146,281 $125,510 $100,873 $118,484 $73,047 Ratio of expenses to average net assets.................. 1.49% 1.62% 1.54% 1.54% 1.52% 1.71% Ratio of net investment income (loss) to average net assets...................... 0.42% 0.19% 0.22% 0.15% (0.21)% (0.62)% Portfolio turnover rate....... 87.56% 121.53% 129.40% 156.09% 138.79% 144.78% Average commission rate paid on portfolio transactions (3)......................... $0.0049 $0.0039 $0.0011
(1) Ratios and portfolio turnover rate are annualized. (2) Not annualized. (3) The average commission rate paid by the fund is computed by dividing the dollar amount of commissions paid during the period by the total number of shares purchased and sold during the period for which commissions were charged. - -------------------------------------------------------------------------------- 17 FINANCIAL HIGHLIGHTS ----------------------------------------------------------------- FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD [LOGO] - ---- ---- -- COLUMBIA SPECIAL FUND, INC. -- ---------------------------------
SIX MONTHS ENDED JUNE 30, 1998 (UNAUDITED)(1) 1997 1996 1995 1994 1993 ----- ----- ----- ----- ----- - ---------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $20.26 $19.85 $21.44 $18.69 $19.51 $18.79 - ---------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss).................... .01 .01 (.06) .03 .08 .01 Net realized and unrealized gains on investments...... 1.74 2.50 2.85 5.45 .36 4.04 - ---------------------------------------------------------------------------------------------------------------------------------- Total from investment operations.............. 1.75 2.51 2.79 5.48 .44 4.05 - ---------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Dividends (from net investment income)........ (.02) (.07) Dividends (in excess of net investment income)........ (.01) Distributions (from capital gains).................... (2.10) (4.38) (2.68) (1.16) (3.32) Distributions (in excess of capital gains)............ (.03) (.03) - ---------------------------------------------------------------------------------------------------------------------------------- Total distributions....... -- (2.10) (4.38) (2.73) (1.26) (3.33) - ---------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $22.01 $20.26 $19.85 $21.44 $18.69 $19.51 - ---------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN.................. 8.64%(2) 12.64% 13.07% 29.53% 2.29% 21.68% RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in thousands).................. $1,097,523 $1,249,718 $1,585,284 $1,384,415 $889,526 $772,741 Ratio of expenses to average net assets.................. 1.00% 0.98% 0.94% 0.98% 1.05% 1.12% Ratio of net investment income (loss) to average net assets...................... 0.06% 0.04% (0.29)% 0.16% 0.40% 0.01% Portfolio turnover rate....... 144.10% 166.46% 150.07% 182.99% 178.91% 154.68% Average commission rate paid on portfolio transactions (3)......................... $0.0578 $0.0585 $0.0553
(1) Ratios and portfolio turnover rate are annualized. (2) Not annualized. (3) The average commission rate paid by the fund is computed by dividing the dollar amount of commissions paid during the period by the total number of shares purchased and sold during the period for which commissions were charged. - -------------------------------------------------------------------------------- 18 FINANCIAL HIGHLIGHTS ----------------------------------------------------------------- FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD [LOGO] - ---- ---- -- COLUMBIA SMALL CAP FUND, INC. -- -----------------------------------
SIX MONTHS ENDED JUNE 30, 1998 (UNAUDITED)(1) 1997 1996(1)(2) ----- ---------- - ---------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $16.65 $12.99 $12.00 - ---------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment loss.................. (.05) (.08) Net realized and unrealized gains on investments........................ 1.53 4.51 .99 - ---------------------------------------------------------------------------------------- Total from investment operations... 1.48 4.43 .99 - ---------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Distributions (from capital gains)... (.77) - ---------------------------------------------------------------------------------------- Total distributions................ -- (.77) -- - ---------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $18.13 $16.65 $12.99 - ---------------------------------------------------------------------------------------- TOTAL RETURN........................... 8.89%(3) 34.10% 7.62%(3) RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in thousands)........................... $138,750 $96,431 $21,061 Ratio of expenses to average net assets............................... 1.26% 1.46% 1.61% Ratio of net investment income (loss) to average net assets................ (0.70)% (0.81)% 0.00% Portfolio turnover rate................ 160.28% 171.75% 32.57% Average commission rate paid on portfolio transactions (4)........... $0.0551 $0.0564 $0.0546
(1) Ratios and portfolio turnover rates are annualized. (2) From inception of operations on September 11, 1996. (3) Not annualized. (4) The average commission rate paid by the fund is computed by dividing the dollar amount of commissions paid during the period by the total number of shares purchased and sold during the period for which commissions were charged. - -------------------------------------------------------------------------------- 19 FINANCIAL HIGHLIGHTS ----------------------------------------------------------------- FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD [LOGO] - ---- ---- -- COLUMBIA REAL ESTATE EQUITY FUND, INC. -- --------------------------------------------
SIX MONTHS ENDED JUNE 30, 1998 (UNAUDITED)(1) 1997 1996 1995 1994(1)(2) ----- ----- ----- --------- - ---------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD........................... $18.80 $16.16 $12.71 $11.72 $12.00 - ---------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income............ .33 .79 .77 .78 .49 Net realized and unrealized gains (losses) on investments........ (1.14) 3.15 3.94 1.12 (.27) - ---------------------------------------------------------------------------------------------- Total from investment operations................... (.81) 3.94 4.71 1.90 .22 - ---------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Dividends (from net investment income)........................ (.33) (.62) (.52) (.49) (.31) Dividends (in excess of net investment income)............. (.01) Distributions (from capital gains)......................... (.48) (.41) Distributions (in excess of capital gains)................. (.03) (.12) (.14) Tax return of capital............ (.17) (.21) (.28) (.18) - ---------------------------------------------------------------------------------------------- Total distributions............ (.33) (1.30) (1.26) (.91) (.50) - ---------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $17.66 $18.80 $16.16 $12.71 $11.72 - ---------------------------------------------------------------------------------------------- TOTAL RETURN....................... -4.34%(3) 24.74% 38.30% 16.86% 1.76%(3) RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in thousands)....................... $171,112 $151,554 $68,073 $21,587 $17,402 Ratio of expenses to average net assets........................... 0.95% 1.02% 1.06% 1.18% 1.14% Ratio of net investment income to average net assets............... 3.78% 4.87% 6.23% 6.71% 6.28% Portfolio turnover rate............ 11.27% 33.55% 45.82% 53.91% 7.61% Average commission rate paid on portfolio transactions (4)....... $0.0607 $0.0588 $0.0594
(1) Ratios and portfolio turnover rates are annualized. (2) From inception of operations on March 16, 1994. (3) Not annualized. (4) The average commission rate paid by the fund is computed by dividing the dollar amount of commissions paid during the period by the total number of shares purchased and sold during the period for which commissions were charged. - -------------------------------------------------------------------------------- 20 FINANCIAL HIGHLIGHTS ----------------------------------------------------------------- FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD [LOGO] - ---- ---- -- COLUMBIA BALANCED FUND, INC. -- ----------------------------------
SIX MONTHS ENDED JUNE 30, 1998 (UNAUDITED)(1) 1997 1996 1995 1994 1993 ----- ----- ----- ----- ----- - --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $21.42 $20.32 $20.08 $17.28 $17.91 $16.80 - --------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income....... .38 .84 .76 .73 .65 .56 Net realized and unrealized gains (losses) on investments............... 2.12 2.92 1.58 3.54 (.64) 1.71 - --------------------------------------------------------------------------------------------------------------------------------- Total from investment operations.............. 2.50 3.76 2.34 4.27 .01 2.27 - --------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Dividends (from net investment income)........ (.37) (.83) (.76) (.73) (.64) (.56) Dividends (in excess of net investment income)........ (.01) Distributions (from capital gains).................... (1.83) (1.34) (.74) (.59) - --------------------------------------------------------------------------------------------------------------------------------- Total distributions....... (.37) (2.66) (2.10) (1.47) (.64) (1.16) - --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $23.55 $21.42 $20.32 $20.08 $17.28 $17.91 - --------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN.................. 11.70%(2) 18.74% 11.78% 25.08% 0.10% 13.62% RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in thousands).................. $941,830 $792,378 $672,593 $486,767 $249,670 $186,589 Ratio of expenses to average net assets.................. 0.65% 0.68% 0.66% 0.69% 0.72% 0.73% Ratio of net investment income to average net assets....... 3.40% 3.83% 3.82% 4.05% 3.82% 3.32% Portfolio turnover rate....... 134.44% 148.91% 133.21% 108.04% 98.48% 107.60% Average commission rate paid on portfolio transactions (3)......................... $0.0595 $0.0610 $0.0596
(1) Ratios and portfolio turnover rate are annualized. (2) Not annualized. (3) The average commission rate paid by the fund is computed by dividing the dollar amount of commissions paid during the period by the total number of shares purchased and sold during the period for which commissions were charged. - -------------------------------------------------------------------------------- 21 FINANCIAL HIGHLIGHTS ----------------------------------------------------------------- FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD [LOGO] - ---- ---- -- COLUMBIA DAILY INCOME COMPANY -- -----------------------------------
SIX MONTHS ENDED JUNE 30, 1998 (UNAUDITED)(1) 1997 1996 1995 1994 1993 ----- ----- ----- ----- ----- - ------------------------------------------------------------------------------------------------------------------------------ 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....... .025 .050 .048 .053 .036 .025 - ------------------------------------------------------------------------------------------------------------------------------ Total from investment operations.............. .025 .050 .048 .053 .036 .025 - ------------------------------------------------------------------------------------------------------------------------------ LESS DISTRIBUTIONS: Dividends (from net investment income)........ (.025) (.050) (.048) (.053) (.036) (.025) - ------------------------------------------------------------------------------------------------------------------------------ Total distributions....... (.025) (.050) (.048) (.053) (.036) (.025) - ------------------------------------------------------------------------------------------------------------------------------ NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 - ------------------------------------------------------------------------------------------------------------------------------ TOTAL RETURN.................. 2.52%(2) 5.11% 4.96% 5.49% 3.68% 2.51% RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in thousands).................. $1,026,375 $1,169,096 $889,800 $800,656 $730,067 $544,500 Ratio of expenses to average net assets.................. 0.63% 0.63% 0.62% 0.64% 0.70% 0.75% Ratio of net investment income to average net assets....... 4.99% 4.99% 4.84% 5.34% 3.68% 2.49%
(1) Ratios are annualized. (2) Not annualized. - -------------------------------------------------------------------------------- 22 FINANCIAL HIGHLIGHTS ----------------------------------------------------------------- FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD [LOGO] - ---- ---- -- COLUMBIA U.S. GOVERNMENT SECURITIES FUND, INC. -- ----------------------------------------------------
SIX MONTHS ENDED JUNE 30, 1998 (UNAUDITED)(1) 1997 1996 1995 1994 1993 ----- ----- ----- ----- ----- - --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $8.29 $8.24 $8.34 $7.99 $8.36 $8.35 - --------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income....... .19 .41 .41 .45 .37 .32 Net realized and unrealized gains (losses) on investments............... .02 .05 (.10) .35 (.37) .17 - --------------------------------------------------------------------------------------------------------------------------------- Total from investment operations.............. .21 .46 .31 .80 -- .49 - --------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Dividends (from net investment income)........ (.19) (.41) (.41) (.45) (.37) (.32) Distributions (from capital gains).................... (.16) - --------------------------------------------------------------------------------------------------------------------------------- Total distributions....... (.19) (.41) (.41) (.45) (.37) (.48) - --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $8.31 $8.29 $8.24 $8.34 $7.99 $8.36 - --------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN.................. 2.61%(2) 5.76% 3.85% 10.21% -0.03% 5.91% RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in thousands).................. $39,123 $37,837 $40,776 $41,842 $33,512 $35,877 Ratio of expenses to average net assets.................. 0.86% 0.87% 0.80% 0.79% 0.81% 0.75% Ratio of net investment income to average net assets....... 4.65% 4.99% 4.99% 5.45% 4.51% 3.74% Portfolio turnover rate....... 158.14% 184.43% 179.38% 253.17% 253.80% 254.59%
(1) Ratios and portfolio turnover rate are annualized. (2) Not annualized. - -------------------------------------------------------------------------------- 23 FINANCIAL HIGHLIGHTS ----------------------------------------------------------------- FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD [LOGO] - ---- ---- -- COLUMBIA FIXED INCOME SECURITIES FUND, INC. -- -------------------------------------------------
SIX MONTHS ENDED JUNE 30, 1998 (UNAUDITED)(1) 1997 1996 1995 1994 1993 ----- ----- ----- ----- ----- - --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $13.41 $13.08 $13.51 $12.16 $13.44 $13.28 - --------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income....... .42 .85 .85 .88 .83 .85 Net realized and unrealized gains (losses) on investments............... .07 .36 (.43) 1.35 (1.28) .52 - --------------------------------------------------------------------------------------------------------------------------------- Total from investment operations.............. .49 1.21 .42 2.23 (.45) 1.37 - --------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Dividends (from net investment income)........ (.42) (.85) (.85) (.88) (.83) (.85) Distributions (from capital gains).................... (.03) (.36) - --------------------------------------------------------------------------------------------------------------------------------- Total distributions....... (.42) (.88) (.85) (.88) (.83) (1.21) - --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $13.48 $13.41 $13.08 $13.51 $12.16 $13.44 - --------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN.................. 3.72%(2) 9.56% 3.37% 18.91% -3.36% 10.47% RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in thousands).................. $411,536 $381,333 $356,421 $316,259 $252,090 $300,532 Ratio of expenses to average net assets.................. 0.63% 0.66% 0.64% 0.65% 0.66% 0.66% Ratio of net investment income to average net assets....... 6.28% 6.43% 6.53% 6.80% 6.53% 6.14% Portfolio turnover rate....... 102.43% 196.28% 178.25% 137.41% 139.81% 118.80%
(1) Ratios and portfolio turnover rate are annualized. (2) Not annualized. - -------------------------------------------------------------------------------- 24 FINANCIAL HIGHLIGHTS ----------------------------------------------------------------- FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD [LOGO] - ---- ---- -- COLUMBIA MUNICIPAL BOND FUND, INC. -- ----------------------------------------
SIX MONTHS ENDED JUNE 30, 1998 (UNAUDITED)(1) 1997 1996 1995 1994 1993 ----- ----- ----- ----- ----- - --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $12.47 $12.15 $12.37 $11.48 $12.71 $12.17 - --------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income....... .29 .60 .61 .63 .64 .66 Net realized and unrealized gains (losses) on investments............... (.03) .39 (.16) .96 (1.23) .62 - --------------------------------------------------------------------------------------------------------------------------------- Total from investment operations.............. .26 .99 .45 1.59 (.59) 1.28 - --------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Dividends (from net investment income) (2).... (.29) (.60) (.61) (.63) (.64) (.66) Distributions (from capital gains).................... (.07) (.06) (.07) (.08) - --------------------------------------------------------------------------------------------------------------------------------- Total distributions....... (.29) (.67) (.67) (.70) (.64) (.74) - --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $12.44 $12.47 $12.15 $12.37 $11.48 $12.71 - --------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN.................. 2.09%(3) 8.36% 3.77% 14.15% -4.68% 10.73% RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in thousands).................. $417,582 $409,148 $375,667 $383,796 $339,817 $430,367 Ratio of expenses to average net assets.................. 0.56% 0.57% 0.56% 0.57% 0.57% 0.58% Ratio of net investment income to average net assets....... 4.63% 4.87% 5.00% 5.22% 5.36% 5.25% Portfolio turnover rate....... 18.68% 16.88% 19.03% 21.45% 19.40% 9.92%
(1) Ratios and portfolio turnover rate are annualized. (2) 100% exempt from federal taxation. (3) Not annualized. - -------------------------------------------------------------------------------- 25 FINANCIAL HIGHLIGHTS ----------------------------------------------------------------- FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD [LOGO] - ---- ---- -- COLUMBIA HIGH YIELD FUND, INC. -- ------------------------------------
SIX MONTHS ENDED JUNE 30, 1998 (UNAUDITED)(1) 1997 1996 1995 1994 1993(1)(2) ----- ----- ----- ----- ---------- - ---------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $10.04 $9.94 $9.88 $9.04 $9.94 $10.00 - ---------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income....... .38 .81 .81 .82 .80 .18 Net realized and unrealized gains (losses) on investments............... .06 .40 .07 .84 (.90) (.06) - ---------------------------------------------------------------------------------------------------------------------------- Total from investment operations.............. .44 1.21 .88 1.66 (.10) .12 - ---------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Dividends (from net investment income)........ (.38) (.81) (.81) (.82) (.80) (.18) Distributions (from capital gains).................... (.30) (.01) - ---------------------------------------------------------------------------------------------------------------------------- Total distributions....... (.38) (1.11) (.82) (.82) (.80) (.18) - ---------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $10.10 $10.04 $9.94 $9.88 $9.04 $9.94 - ---------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN.................. 4.45%(3) 12.70% 9.43% 19.12% -0.92% 1.12%(3) RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in thousands).................. $50,514 $39,278 $28,818 $23,471 $12,834 $5,940 Ratio of expenses to average net assets (4).............. 0.99% 1.00% 0.93% 1.00% 1.00% 1.00% Ratio of net investment income to average net assets....... 7.58% 8.05% 8.29% 8.62% 8.69% 7.30% Portfolio turnover rate....... 80.97% 124.23% 62.27% 51.60% 36.67% 0.00%
(1) Ratios and portfolio turnover rates are annualized. (2) From inception of operations on September 15, 1993. (3) Not annualized. (4) The ratio was 1.02% in 1997, 1.00% in 1996, 1.06% in 1995, 1.19% in 1994 and 2.03% in 1993, before voluntary reimbursement. - -------------------------------------------------------------------------------- 26 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - --------------------- --------------------- -- COLUMBIA COMMON STOCK FUND, INC. -- ------
SHARES OR JUNE 30, 1998 PRINCIPAL (UNAUDITED) AMOUNT VALUE(1) ------------ ------------- COMMON STOCKS (96.9%) BUILDING & FORESTRY PRODUCTS (0.9%) CHAMPION INTERNATIONAL CORP........ 44,200 $ 2,174,087 FORT JAMES CORP.................... 40,700 1,811,150 *OWENS-ILLINOIS, INC................ 98,400 4,403,400 ------------- 8,388,637 ------------- BUSINESS & CONSUMER SERVICES (2.0%) *CENDANT CORP....................... 190,900 3,985,037 SERVICE CORPORATION INT'L.......... 328,100 14,067,288 ------------- 18,052,325 ------------- CONSUMER DURABLE (0.6%) BLACK & DECKER CORP................ 93,700 5,715,700 ------------- CONSUMER NON-DURABLE (10.0%) *COSTCO COS., INC................... 200,000 12,612,500 DAYTON HUDSON CORP................. 175,100 8,492,350 LOWE'S COS., INC................... 320,000 12,980,000 MATTEL, INC........................ 369,250 15,623,891 MCDONALD'S CORP.................... 154,900 10,688,100 TANDY CORP......................... 312,100 16,560,806 WAL-MART STORES, INC............... 254,800 15,479,100 ------------- 92,436,747 ------------- CONSUMER STAPLES (10.8%) AVON PRODUCTS, INC................. 54,100 4,192,750 COCA-COLA CO....................... 216,000 18,468,000 FORTUNE BRANDS, INC................ 116,000 4,458,750 GILLETTE CO........................ 138,600 7,856,887 *KROGER CO.......................... 150,000 6,431,250 *MEYER (FRED), INC.................. 400,000 17,000,000 PEPSICO, INC....................... 200,000 8,237,500 RITE AID CORP...................... 294,400 11,058,400 *SAFEWAY, INC....................... 312,000 12,694,500 SYSCO CORP......................... 352,300 9,027,688 ------------- 99,425,725 ------------- ENERGY (5.6%) BRITISH PETROLEUM CO. PLC ADR...... 46,900 4,138,925 ELF AQUITANE S.A. ADR.............. 57,300 4,068,300 EXXON CORP......................... 203,900 14,540,619 MOBIL CORP......................... 141,600 10,850,100 ROYAL DUTCH PETROLEUM CO........... 136,500 7,481,906 TEXACO, INC........................ 182,000 10,863,125 ------------- 51,942,975 ------------- SHARES OR PRINCIPAL AMOUNT VALUE(1) ------------ ------------- ENERGY SERVICES (1.7%) CAMCO INTERNATIONAL, INC........... 60,900 $ 4,742,587 DIAMOND OFFSHORE DRILLING, INC..... 58,500 2,340,000 SCHLUMBERGER LTD................... 35,000 2,390,938 *SMITH INTERNATIONAL, INC........... 64,200 2,234,963 TRANSOCEAN OFFSHORE, INC........... 88,400 3,933,800 ------------- 15,642,288 ------------- ENTERTAINMENT & MEDIA (2.1%) *CHANCELLOR MEDIA CORP.............. 235,200 11,679,150 NEW YORK TIMES CO. (CLASS A)....... 93,700 7,425,725 ------------- 19,104,875 ------------- FINANCE (16.6%) ALLSTATE CORP...................... 60,000 5,493,750 AMERICAN EXPRESS CO................ 100,900 11,502,600 AMERICAN GENERAL CORP.............. 165,500 11,781,531 BANKAMERICA CORP................... 120,000 10,372,500 CHASE MANHATTAN CORP............... 123,600 9,331,800 CHUBB CORP......................... 113,000 9,082,375 CIT GROUP, INC. (CLASS A).......... 150,000 5,625,000 FANNIE MAE......................... 275,000 16,706,250 FIRST CHICAGO NBD CORP............. 79,400 7,036,825 FIRST UNION CORP................... 246,600 14,364,450 MELLON BANK CORP................... 100,000 6,962,500 NATIONSBANK CORP................... 208,100 15,919,650 TRAVELERS GROUP, INC............... 155,000 9,396,875 TRAVELERS PROPERTY CASUALTY CORP. (CLASS A)......................... 227,800 9,766,925 U.S. BANCORP....................... 222,132 9,551,676 ------------- 152,894,707 ------------- HEALTH (14.2%) AMERICAN HOME PRODUCTS CORP........ 367,000 18,992,250 BECTON, DICKINSON & CO............. 49,000 3,803,625 *BOSTON SCIENTIFIC CORP............. 164,900 11,810,962 BRISTOL-MYERS SQUIBB CO............ 140,000 16,091,250 LILLY (ELI) & CO................... 113,700 7,511,306 MERCK & CO., INC................... 119,000 15,916,250 PFIZER, INC........................ 245,000 26,628,438 SCHERING-PLOUGH CORP............... 139,000 12,735,875 WARNER-LAMBERT CO.................. 248,000 17,205,000 ------------- 130,694,956 ------------- MACHINERY & CAPITAL SPENDING (8.0%) ALLIED SIGNAL, INC................. 300,700 13,343,563 EMERSON ELECTRIC CO................ 128,000 7,728,000 GENERAL ELECTRIC CO................ 300,000 27,300,000
27 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - --------------------- --------------------- -- COLUMBIA COMMON STOCK FUND, INC. -- ------
COMMON STOCKS (CONTINUED) SHARES OR PRINCIPAL AMOUNT VALUE(1) ------------ ------------- TYCO INTERNATIONAL LTD............. 396,308 $ 24,967,404 ------------- 73,338,967 ------------- POLLUTION CONTROL (1.0%) *USA WASTE SERVICES, INC............ 155,000 7,653,125 WASTE MANAGEMENT, INC.............. 55,000 1,925,000 ------------- 9,578,125 ------------- TECHNOLOGY (17.1%) AUTOMATIC DATA PROCESSING, INC..... 142,000 10,348,250 *BAY NETWORKS, INC.................. 417,100 13,451,475 *CADENCE DESIGN SYSTEMS, INC........ 288,300 9,009,375 *CISCO SYSTEMS, INC................. 47,000 4,326,937 COMPAQ COMPUTER CORP............... 206,000 5,845,250 COMPUTER ASSOCIATES INTERNATIONAL, INC............................... 161,300 8,962,231 *COMPUTER SCIENCES CORP............. 245,500 15,712,000 ERICSSON (L.M.) TELEPHONE CO. (CLASS B) ADR..................... 339,600 9,721,050 *GATEWAY 2000, INC.................. 227,600 11,522,250 INTERNATIONAL BUSINESS MACHINES CORP.............................. 100,000 11,481,250 LUCENT TECHNOLOGIES, INC........... 159,000 13,226,813 *MICROSOFT CORP..................... 239,800 25,988,325 *STORAGE TECHNOLOGY CORP............ 47,400 2,055,975 *STRUCTURAL DYNAMICS RESEARCH CORP..................... 286,400 6,623,000 *TELLABS, INC....................... 126,400 9,053,400 ------------- 157,327,581 ------------- TRANSPORTATION (0.6%) *AMR CORP........................... 66,800 5,561,100 ------------- UTILITIES/COMMUNICATIONS (4.4%) AMERITECH CORP..................... 100,000 4,487,500 AT&T CORP.......................... 40,200 2,296,425 SHARES OR PRINCIPAL AMOUNT VALUE(1) ------------ ------------- BELL ATLANTIC CORP................. 106,800 $ 4,872,750 MCI COMMUNICATIONS CORP............ 69,300 4,028,062 SBC COMMUNICATIONS, INC............ 169,800 6,792,000 SPRINT CORP........................ 59,200 4,173,600 *WORLDCOM, INC...................... 283,700 13,741,719 ------------- 40,392,056 ------------- UTILITIES/ELECTRIC/GAS (1.3%) IDAHO POWER CO..................... 236,600 8,192,275 TEXAS UTILITIES CO................. 100,000 4,162,500 ------------- 12,354,775 ------------- TOTAL COMMON STOCKS (COST $703,693,351)............... 892,851,539 ------------- REPURCHASE AGREEMENT (3.9%) GOLDMAN SACHS CORP. 5.830% DATED 06/30/1998, DUE 07/01/1998 IN THE AMOUNT OF $36,209,493. COLLATERALIZED BY U.S. TREASURY BONDS 6.250% DUE 08/15/2023. (COST $36,203,710)................ $36,203,710 36,203,710 ------------- TOTAL INVESTMENTS (100.8%) (COST $739,897,061)................... 929,055,249 RECEIVABLES LESS LIABILITIES (-0.8%)... (7,795,824) ------------- NET ASSETS (100.0%).................... $ 921,259,425 ------------- -------------
(1) See Note 1 of Notes to Financial Statements. * Non-income producing. The accompanying notes are an integral part of the financial statements. 28 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ------------------------- ------------------------- -- COLUMBIA GROWTH FUND, INC. -- ------
SHARES OR JUNE 30, 1998 PRINCIPAL (UNAUDITED) AMOUNT VALUE(1) ------------ --------------- COMMON STOCKS (97.3%) BUILDING & FORESTRY PRODUCTS (1.5%) *OWENS-ILLINOIS, INC................ 555,000 $ 24,836,250 --------------- BUSINESS & CONSUMER SERVICES (5.9%) *CENDANT CORP....................... 1,101,250 22,988,594 *FISERV, INC........................ 450,750 19,142,789 MCKESSON CORP...................... 297,800 24,196,250 SERVICE CORPORATION INT'L.......... 450,000 19,293,750 SERVICEMASTER CO................... 382,500 14,558,906 --------------- 100,180,289 --------------- CONSUMER DURABLE (1.6%) BLACK & DECKER CORP................ 147,700 9,009,700 FEDERAL-MOGUL CORP................. 250,000 16,875,000 *SONIC AUTOMOTIVE, INC.............. 50,000 821,875 --------------- 26,706,575 --------------- CONSUMER NON-DURABLE (14.2%) *ABERCROMBIE & FITCH CO. (CLASS A)................................ 805,834 35,456,696 CARNIVAL CORP...................... 500,000 19,812,500 LOWE'S COS., INC................... 454,000 18,415,375 MATTEL, INC........................ 611,700 25,882,556 MCDONALD'S CORP.................... 124,300 8,576,700 *PAYLESS SHOESOURCE, INC............ 400,200 29,489,738 ROYAL CARIBBEAN CRUISES LTD........ 255,000 20,272,500 TANDY CORP......................... 900,000 47,756,250 WARNACO GROUP, INC. (CLASS A)...... 804,000 34,119,750 --------------- 239,782,065 --------------- CONSUMER STAPLES (8.1%) FORTUNE BRANDS, INC................ 400,000 15,375,000 GILLETTE CO........................ 374,200 21,212,462 LIBBEY, INC........................ 292,000 11,187,250 *MEYER (FRED), INC.................. 263,400 11,194,500 RITE AID CORP...................... 901,850 33,875,741 *SAFEWAY, INC....................... 655,400 26,666,588 SYSCO CORP......................... 656,800 16,830,500 --------------- 136,342,041 --------------- ENERGY SERVICES (2.2%) CAMCO INTERNATIONAL, INC........... 300,900 23,432,587 DIAMOND OFFSHORE DRILLING, INC..... 350,000 14,000,000 --------------- 37,432,587 --------------- SHARES OR PRINCIPAL AMOUNT VALUE(1) ------------ --------------- ENTERTAINMENT & MEDIA (1.5%) *CHANCELLOR MEDIA CORP.............. 300,000 $ 14,896,875 NEW YORK TIMES CO. (CLASS A)....... 142,900 11,324,825 --------------- 26,221,700 --------------- FINANCE (18.9%) ALLSTATE CORP...................... 271,600 24,868,375 AMERICAN GENERAL CORP.............. 361,800 25,755,637 AMERICAN INTERNATIONAL GROUP, INC............................... 124,225 18,136,850 BANKAMERICA CORP................... 200,000 17,287,500 BANKBOSTON CORP.................... 300,000 16,687,500 CHASE MANHATTAN CORP............... 300,000 22,650,000 CHUBB CORP......................... 84,000 6,751,500 CIT GROUP, INC. (CLASS A).......... 600,000 22,500,000 CITICORP........................... 125,000 18,656,250 FANNIE MAE......................... 456,800 27,750,600 FIRST UNION CORP................... 300,000 17,475,000 FREDDIE MAC........................ 500,700 23,564,194 *HELLER FINANCIAL, INC.............. 350,000 10,500,000 MORGAN STANLEY, DEAN WITTER, DISCOVER & CO..................... 405,080 37,014,185 NATIONSBANK CORP................... 380,812 29,132,118 --------------- 318,729,709 --------------- HEALTH (13.9%) AMERICAN HOME PRODUCTS CORP........ 623,900 32,286,825 *BOSTON SCIENTIFIC CORP............. 475,400 34,050,525 BRISTOL-MYERS SQUIBB CO............ 244,500 28,102,219 LILLY (ELI) & CO................... 222,100 14,672,481 MEDTRONIC, INC..................... 150,000 9,562,500 MERCK & CO., INC................... 195,600 26,161,500 PFIZER, INC........................ 352,300 38,290,606 SCHERING-PLOUGH CORP............... 186,800 17,115,550 WARNER-LAMBERT CO.................. 501,400 34,784,625 --------------- 235,026,831 --------------- MACHINERY & CAPITAL SPENDING (6.9%) ALLIEDSIGNAL, INC.................. 482,600 21,415,375 EMERSON ELECTRIC CO................ 161,000 9,720,375 GENERAL ELECTRIC CO................ 339,000 30,849,000 TYCO INTERNATIONAL LTD............. 861,354 54,265,302 --------------- 116,250,052 --------------- POLLUTION CONTROL (0.8%) *USA WASTE SERVICES, INC............ 155,700 7,687,688
29 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ------------------------- ------------------------- -- COLUMBIA GROWTH FUND, INC. -- ------
COMMON STOCKS (CONTINUED) SHARES OR PRINCIPAL AMOUNT VALUE(1) ------------ --------------- WASTE MANAGEMENT, INC.............. 175,000 $ 6,125,000 --------------- 13,812,688 --------------- TECHNOLOGY (19.3%) *BAY NETWORKS, INC.................. 572,100 18,450,225 *CADENCE DESIGN SYSTEMS, INC........ 503,000 15,718,750 *CISCO SYSTEMS, INC................. 590,700 54,381,319 COMPAQ COMPUTER CORP............... 382,200 10,844,925 COMPUTER ASSOCIATES INTERNATIONAL, INC............................... 350,850 19,494,103 *COMPUTER SCIENCES CORP............. 533,200 34,124,800 *EMC CORP........................... 300,300 13,457,194 ERICSSON (L.M.) TELEPHONE CO. (CLASS B) ADR..................... 741,800 21,234,025 *GATEWAY 2000, INC.................. 470,500 23,819,062 LUCENT TECHNOLOGIES, INC........... 269,600 22,427,350 *MICROSOFT CORP..................... 500,000 54,187,500 *STORAGE TECHNOLOGY CORP............ 87,800 3,808,325 *STRUCTURAL DYNAMICS RESEARCH CORP.............................. 387,400 8,958,625 *TELLABS, INC....................... 358,100 25,648,913 --------------- 326,555,116 --------------- TRANSPORTATION (0.3%) CNF TRANSPORTATION, INC............ 100,000 4,250,000 --------------- UTILITIES/COMMUNICATIONS (2.2%) MCI COMMUNICATIONS CORP............ 200,000 11,625,000 SHARES OR PRINCIPAL AMOUNT VALUE(1) ------------ --------------- SPRINT CORP........................ 109,400 $ 7,712,700 *WORLDCOM, INC...................... 383,500 18,575,781 --------------- 37,913,481 --------------- TOTAL COMMON STOCKS (COST $1,141,868,701)............. 1,644,039,384 --------------- REPURCHASE AGREEMENT (2.1%) GOLDMAN SACHS CORP. 5.830% DATED 06/30/1998, DUE 07/01/1998 IN THE AMOUNT OF $35,179,637 COLLATERALIZED BY U.S. TREASURY BONDS 6.250% DUE 08/15/2023. (COST $35,174,019)................ $35,174,019 35,174,019 --------------- TOTAL INVESTMENTS (99.4%) (COST $1,177,042,720)................. 1,679,213,403 RECEIVABLES LESS LIABILITIES (0.6%).... 11,144,538 --------------- NET ASSETS (100.0%).................... $ 1,690,357,941 --------------- ---------------
(1) See Note 1 of Notes to Financial Statements. * Non-income producing. The accompanying notes are an integral part of the financial statements. 30 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ------------------ ------------------ -- COLUMBIA INTERNATIONAL STOCK FUND, INC. -- ------
SHARES OR JUNE 30, 1998 PRINCIPAL (UNAUDITED) AMOUNT VALUE(1) ----------- ------------- COMMON STOCKS (93.8%) BELGIUM (0.5%) *LERNOUT & HAUSPIE SPEECH PRODUCTS NV (BUSINESS SERVICES)............ 13,800 $ 823,687 ------------- BRAZIL (0.3%) CIA TECIDOS DO NORTE DE MINAS SA (TEXTILES)........................ 1,973,067 443,578 ------------- CANADA (2.6%) BANK OF MONTREAL (BANKING)......... 6,800 374,643 BOMBARDIER, INC. (CLASS B) (MANUFACTURING - DIVERSIFIED INDS.)................ 25,000 680,179 CANADIAN NATIONAL RAILWAY CO. (TRANSPORTATION).................. 8,500 452,115 *DANIER LEATHER, INC. (RETAIL)...... 47,800 292,613 *NEWBRIDGE NETWORKS CORP. (ELECTRONICS)..................... 15,000 358,625 NORTHERN TELECOM LTD. (ELECTRONICS)..................... 14,000 794,178 *POCO PETROLEUMS LTD. (OIL EXPLORATION & PRODUCTION)......... 42,000 411,373 SUNCOR ENERGY, INC. (OIL EXPLORATION & PRODUCTION)......... 18,000 612,162 ------------- 3,975,888 ------------- CHILE (0.5%) DISTRIBUCION Y SERVICIO D&S SA, ADR (RETAIL).......................... 50,000 750,000 ------------- FINLAND (2.8%) FINNLINES OYJ (TRANSPORTATION)..... 17,000 1,054,590 HARTWALL OY AB (SERIES A) (FOOD & BEVERAGES)........................ 10,000 321,121 MERITA PLC (CLASS A) (BANKING)..... 280,000 1,849,365 TIETO CORP. (CLASS B) (BUSINESS SERVICES)............... 8,100 616,279 YIT-YHTYMA OYJ (CONSTRUCTION)...... 31,400 504,160 ------------- 4,345,515 ------------- FRANCE (10.3%) ALCATEL ALSTHOM SA (ELECTRONICS)... 5,700 1,160,783 *ALSTOM SA (MACHINERY & CAPITAL SPENDING)......................... 20,000 658,417 BANQUE NATIONALE DE PARIS (BANKING)......................... 4,000 326,893 SHARES OR PRINCIPAL AMOUNT VALUE(1) ----------- ------------- CIE DE SAINT GOBAIN SA (BUILDING MATERIALS)........................ 4,184 $ 775,917 FRANCE TELECOM SA, ADR (UTILITIES - COMMUNICATION).................... 39,000 2,712,937 L'OREAL SA (CONSUMER PRODUCTS)..... 4,000 2,225,384 PARIBAS SA (BANKING)............... 6,000 642,205 *RENAULT SA (MOTOR VEHICLES & PARTS)............................ 50,000 2,844,594 *RHODIA SA (CHEMICALS).............. 10,000 278,917 SCHNEIDER SA (ELECTRICAL EQUIPMENT)........................ 13,000 1,036,808 SODEXHO ALLIANCE SA (FOOD & BEVERAGES)................ 4,000 756,353 SYNTHELABO SA (PHARMACEUTICALS).... 3,600 607,464 TOTAL SA (CLASS B) (OIL EXPLORATION & PRODUCTION)..................... 6,200 806,181 VIVENDI SA (UTILITIES)............. 4,700 1,003,788 ------------- 15,836,641 ------------- GERMANY (6.1%) ALLIANZ AG (INSURANCE)............. 3,000 1,000,610 *ALLIANZ AG (NEW) (INSURANCE)....... 88 29,107 DEUTSCHE BANK AG (BANKING)......... 12,500 1,057,724 MANNESMANN AG (MACHINERY & CAPITAL SPENDING)......................... 34,000 3,497,283 RWE AG (MANUFACTURING - DIVERSIFIED INDS.)............................ 12,000 710,658 THYSSEN AG (METALS, MINING & STEEL)............................ 6,000 1,527,115 VOLKSWAGEN AG (MOTOR VEHICLES & PARTS)................. 1,615 1,560,910 ------------- 9,383,407 ------------- GREECE (0.3%) *STET HELLAS TELECOMMUNICATIONS SA, ADR (UTILITIES - COMMUNICATION)... 10,000 415,000 ------------- HUNGARY (0.2%) *GEDEON RICHTER LTD., GDR (PHARMACEUTICALS)................. 4,000 319,000 ------------- INDIA (1.8%) BAJAJ AUTO LTD., GDR (MOTOR VEHICLES & PARTS)................. 30,000 400,500 BANK OF BARODA LTD. (BANKING)...... 271,000 536,815 INDIAN HOTELS CO., LTD., THE, GDR (ENTERTAINMENT & LEISURE)......... 37,000 286,750
31 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ------------------ ------------------ -- COLUMBIA INTERNATIONAL STOCK FUND, INC. -- ------
COMMON STOCKS (CONTINUED) SHARES OR PRINCIPAL AMOUNT VALUE(1) ----------- ------------- INDUSTRIAL CREDIT & INVESTMENT CORP. OF INDIA LTD., THE, GDR (FINANCIAL SERVICES).............. 30,000 $ 304,125 INFOSYS TECHNOLOGIES LTD. (BUSINESS SERVICES)......................... 15,200 793,592 MAHINDRA & MAHINDRA LTD. (MOTOR VEHICLES & PARTS)................. 70,000 358,847 ------------- 2,680,629 ------------- IRELAND (1.1%) BANK OF IRELAND PLC (BANKING)...... 42,000 863,687 IRISH LIFE PLC (INSURANCE)......... 87,500 816,492 ------------- 1,680,179 ------------- ITALY (4.5%) ALLEANZA ASSICURAZIONI S.P.A (INSURANCE)....................... 53,000 706,309 CREDITO ITALIANO S.P.A (BANKING)... 488,500 2,539,101 FIAT S.P.A (MOTOR VEHICLES & PARTS)............................ 266,000 1,167,856 LA RINASCENTE S.P.A (RETAIL)....... 74,000 723,097 TELECOM ITALIA S.P.A, ADR (UTILITIES - COMMUNICATION)....... 22,800 1,675,800 ------------- 6,812,163 ------------- JAPAN (16.4%) AIWA CO., LTD. (ELECTRONICS)....... 18,000 564,854 BANK OF TOKYO-MITSUBISHI LTD., ADR, THE (BANKING)..................... 240,100 2,641,100 BANYU PHARMACEUTICAL CO., LTD. (PHARMACEUTICALS)................. 65,000 703,362 BRIDGESTONE CORP. (MOTOR VEHICLES & PARTS)............................ 32,000 757,178 ITO-YOKADO CO., LTD. (RETAIL)...... 16,000 753,715 ITO-YOKADO CO., LTD., ADR (RETAIL).......................... 20,000 950,000 KAO CORP. (CONSUMER PRODUCTS)...... 65,000 1,003,463 KEYENCE CORP. (ELECTRONICS)........ 4,600 501,082 KOMATSU LTD. (MACHINERY & CAPITAL SPENDING)......................... 143,000 695,296 MABUCHI MOTOR CO., LTD. (ELECTRICAL EQUIPMENT)........................ 16,000 1,015,726 MITSUBISHI ESTATE CO., LTD. (REAL ESTATE)........................... 70,000 616,073 SHARES OR PRINCIPAL AMOUNT VALUE(1) ----------- ------------- NINTENDO CO., LTD. (ENTERTAINMENT & LEISURE).......................... 5,000 $ 463,497 NIPPON TELEGRAPH & TELEPHONE CORP. (UTILITIES - COMMUNICATION)....... 1,610 1,335,666 NOMURA SECURITIES CO., LTD., THE (FINANCIAL SERVICES).............. 152,000 1,770,884 NTT DATA CORP. (BUSINESS SERVICES)......................... 16 578,271 ROHM CO., LTD. (ELECTRONICS)....... 13,000 1,336,387 SANWA BANK LTD., THE (BANKING)..... 118,000 1,056,399 SEKISUI HOUSE LTD. (CONSTRUCTION).................... 112,000 868,562 SEVEN-ELEVEN JAPAN CO., LTD. (RETAIL).......................... 3,000 178,762 SONY CORP. (ELECTRONICS)........... 16,000 1,379,310 SONY CORP., ADR (ELECTRONICS)...... 17,000 1,463,062 TAKEDA CHEMICAL INDS., LTD. (PHARMACEUTICALS)................. 41,000 1,091,401 TOKIO MARINE & FIRE INSURANCE CO., LTD., THE (INSURANCE)............. 130,000 1,337,325 TORAY INDUSTRIES, INC. (CHEMICALS)....................... 65,000 337,614 TOYOTA MOTOR CORP. (MOTOR VEHICLES & PARTS).......................... 50,000 1,294,907 TRANS COSMOS, INC. (BUSINESS SERVICES)......................... 18,000 433,704 ------------- 25,127,600 ------------- MEXICO (1.1%) *INDUSTRIAS CH SA (SERIES B) (METALS, MINING & STEEL).......... 280,000 906,946 TUBOS DE ACERO DE MEXICO SA, ADR (METALS, MINING & STEEL).......... 60,000 768,750 ------------- 1,675,696 ------------- NETHERLANDS (5.8%) ABN AMRO HOLDING NV (BANKING)...... 32,524 761,506 AEGON NV (INSURANCE)............... 51,984 4,525,907 AKZO NOBEL NV (CHEMICALS).......... 4,800 1,067,664 ROYAL PHILIPS ELECTRONICS NV (ELECTRONICS)..................... 20,000 1,682,243 VEDIOR NV (CERTIFICATES) (BUSINESS SERVICES)......................... 13,004 367,796 VENDEX NV (RETAIL)................. 13,178 495,876 ------------- 8,900,992 -------------
32 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ------------------ ------------------ -- COLUMBIA INTERNATIONAL STOCK FUND, INC. -- ------
COMMON STOCKS (CONTINUED) SHARES OR PRINCIPAL AMOUNT VALUE(1) ----------- ------------- NORWAY (1.1%) NARVESEN ASA (RETAIL).............. 9,000 $ 187,867 TOMRA SYSTEMS ASA (MACHINERY & CAPITAL SPENDING)................. 49,000 1,470,320 ------------- 1,658,187 ------------- POLAND (0.2%) *MOSTOSTAL-WARSZAWA SA, GDR (CONSTRUCTION).................... 34,800 241,860 ------------- SPAIN (7.3%) AZKOYEN SA (MANUFACTURING - CONSUMER PRODUCTS)................ 4,000 621,816 BANCO BILBAO VIZCAYA SA (BANKING)......................... 64,000 3,289,876 DRAGADOS Y CONSTRUCCIONES SA (CONSTRUCTION).................... 59,000 1,892,162 METROVACESA SA (REAL ESTATE)....... 35,000 1,031,026 TELEFONICA DE ESPANA SA, ADR (UTILITIES - COMMUNICATION)....... 16,363 2,275,480 *TELEPIZZA SA (RESTAURANTS)......... 130,000 1,379,817 VALLEHERMOSO SA (REAL ESTATE)...... 20,000 736,773 ------------- 11,226,950 ------------- SWEDEN (2.8%) ASSA ABLOY AB (CLASS B) (MANUFACTURING - DIVERSIFIED INDS.)............................ 23,000 904,024 BILSPEDITION TRANSPORT & LOGISTICS (BTL) AB (TRANSPORTATION)......... 86,000 462,563 ICB SHIPPING AB (CLASS B) (TRANSPORTATION).................. 63,000 568,706 MUNTERS AB (MANUFACTURING - CONSUMER PRODUCTS)................ 74,300 810,444 *N&T ARGONAUT AB (CLASS B) (TRANSPORTATION).................. 320,000 441,324 SKANDIA INSURANCE CO., LTD. (INSURANCE)....................... 61,000 871,866 SPECTRA-PHYSICS AB (CLASS A) (ELECTRONICS)..................... 14,000 223,796 ------------- 4,282,723 ------------- SWITZERLAND (4.0%) CREDIT SUISSE GROUP (REGISTERED) (FINANCIAL SERVICES).............. 6,500 1,447,542 SHARES OR PRINCIPAL AMOUNT VALUE(1) ----------- ------------- *GRETAG IMAGING GROUP (REGISTERED) (MACHINERY & CAPITAL SPENDING).... 7,000 $ 672,055 NOVARTIS AG (BEARER) (PHARMACEUTICALS)................. 1,500 2,500,165 *SAIA-BURGESS ELECTRONICS AG (REGISTERED) (ELECTRONICS)........ 2,700 726,889 UBS AG (REGISTERED) (BANKING)...... 2,000 744,309 ------------- 6,090,960 ------------- THAILAND (0.2%) *BANGKOK BANK PUBLIC CO., LTD. (FOREIGN) (BANKING)............... 160,000 197,156 THAI FARMERS BANK PUBLIC CO., LTD. (FOREIGN) (BANKING)............... 175,000 154,473 ------------- 351,629 ------------- UNITED KINGDOM (23.9%) BANK OF SCOTLAND PLC (BANKING)..... 86,000 962,421 BARCLAYS PLC (BANKING)............. 50,639 1,459,395 BRITISH AEROSPACE PLC (AIRCRAFT & AEROSPACE)............ 240,924 1,844,322 BRITISH PETROLEUM CO. PLC (OIL EXPLORATION & PRODUCTION)......... 56,561 824,465 BRITISH SKY BROADCASTING GROUP PLC (MEDIA)........................... 105,000 753,887 BRITISH TELECOMMUNICATIONS PLC (UTILITIES - COMMUNICATION)....... 210,000 2,591,761 CADBURY SCHWEPPES PLC (FOOD & BEVERAGES)........................ 54,000 835,318 COMPASS GROUP PLC (RESTAURANTS).... 320,000 3,677,165 *COMPUTACENTER PLC (BUSINESS SERVICES)......................... 100,000 1,249,182 ELECTROCOMPONENTS PLC (ELECTRONICS)..................... 86,469 677,801 GKN PLC (MOTOR VEHICLES & PARTS)... 58,000 738,552 GLAXO WELLCOME PLC (PHARMACEUTICALS)................. 86,000 2,580,320 GRANADA GROUP PLC (ENTERTAINMENT & LEISURE).......................... 60,975 1,120,669 HAYS PLC (BUSINESS SERVICES)....... 120,000 2,011,367 *ICON PLC, ADR (PHARMACEUTICALS).... 9,000 227,250 MISYS PLC (BUSINESS SERVICES)...... 15,000 851,829
33 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ------------------ ------------------ -- COLUMBIA INTERNATIONAL STOCK FUND, INC. -- ------
COMMON STOCKS (CONTINUED) SHARES OR PRINCIPAL AMOUNT VALUE(1) ----------- ------------- NATIONAL WESTMINSTER BANK PLC (BANKING)......................... 93,000 $ 1,661,179 NEXT PLC (RETAIL).................. 80,000 687,134 PEARSON PLC (MEDIA)................ 70,000 1,281,871 RAILTRACK GROUP PLC (TRANSPORTATION).................. 80,000 1,959,999 ROBERT WALTERS PLC (BUSINESS SERVICES)......................... 54,000 376,456 SELECT APPOINTMENTS HOLDINGS PLC (BUSINESS SERVICES)............... 54,000 765,520 SIEBE PLC (MACHINERY & CAPITAL SPENDING)......................... 72,295 1,443,266 *SMALLWORLDWIDE PLC, ADR (BUSINESS SERVICES)......................... 19,000 553,375 SMITHKLINE BEECHAM PLC (PHARMACEUTICALS)................. 201,072 2,453,070 VODAFONE GROUP PLC (UTILITIES - COMMUNICATION).................... 80,000 1,014,689 WETHERSPOON, J.D. PLC (RESTAURANTS)..................... 140,000 682,964 WPP GROUP PLC (MEDIA).............. 200,000 1,310,057 ------------- 36,595,284 ------------- TOTAL COMMON STOCKS (COST $108,696,027)............... 143,617,568 ------------- PREFERRED STOCKS (1.4%) BRAZIL (0.1%) DIXIE TOGA SA (CONTAINERS)......... 437,500 185,365 EMPRESA NACIONAL DE COMERCIO REDITO E PARTICIPACOES SA (TEXTILES)..... 1,195,000 2,997 ------------- 188,362 ------------- GERMANY (1.3%) PORSCHE AG (MOTOR VEHICLES & PARTS)............................ 700 2,018,410 ------------- TOTAL PREFERRED STOCKS (COST $1,091,140)................. 2,206,772 ------------- SHARES OR PRINCIPAL AMOUNT VALUE(1) ----------- ------------- WARRANT (0.3%) FRANCE (0.3%) *VIVENDI SA (05/02/2001) (UTILITIES) (COST $129,829)................... 220,000 $ 433,099 ------------- TOTAL INVESTMENTS, EXCLUDING TEMPORARY CASH INVESTMENT (COST $109,916,996)............... 146,257,439 ------------- REPURCHASE AGREEMENT (4.3%) GOLDMAN SACHS CORP. 5.830% DATED 06/30/1998, DUE 07/01/1998 IN THE AMOUNT OF $6,608,619. COLLATERALIZED BY U.S. TREASURY BONDS 6.250% DUE 08/15/2023. (COST $6,607,564)................. $6,607,564 6,607,564 ------------- TOTAL INVESTMENTS (99.8%) (COST $116,524,560)................... 152,865,003 CASH AND RECEIVABLES LESS LIABILITIES (0.2%)................................ 229,038 ------------- NET ASSETS (100%)...................... $ 153,094,041 ------------- -------------
(1) See Note 1 of Notes to Financial Statements. * Non-income producing. The accompanying notes are an integral part of the financial statements. 34 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - -------------------------- -------------------------- -- COLUMBIA SPECIAL FUND, INC. -- ------
SHARES OR JUNE 30, 1998 PRINCIPAL (UNAUDITED) AMOUNT VALUE(1) ------------ --------------- COMMON STOCKS (92.5%) BUILDING & FORESTRY PRODUCTS (1.6%) LONGVIEW FIBRE CO.................. 1,215,000 $ 17,313,750 --------------- BUSINESS & CONSUMER SERVICES (14.5%) *ADMINISTAFF, INC................... 335,000 15,451,875 *CSG SYSTEMS INTERNATIONAL, INC..... 200,000 9,375,000 DENTSPLY INTERNATIONAL, INC........ 250,000 6,250,000 *FISERV, INC........................ 555,000 23,570,156 MCKESSON CORP...................... 250,000 20,312,500 MEREDITH CORP...................... 200,000 9,387,500 *NOVACARE EMPLOYEE SERVICES, INC.... 500,000 4,750,000 *PROFESSIONAL DETAILING, INC........ 200,000 4,975,000 *ROMAC INTERNATIONAL, INC........... 465,000 14,124,375 SERVICE CORPORATION INT'L.......... 570,000 24,438,750 SERVICEMASTER CO................... 450,000 17,128,125 UNITOG CO.......................... 450,000 9,900,000 --------------- 159,663,281 --------------- CONSUMER DURABLE (2.0%) *FURNITURE BRANDS INTERNATIONAL, INC............................... 765,000 21,467,812 --------------- CONSUMER NON-DURABLE (24.4%) *ABERCROMBIE & FITCH CO. (CLASS A)................................ 800,000 35,200,000 +*ANNTAYLOR STORES CORP.............. 1,400,000 29,662,500 *BED, BATH & BEYOND, INC............ 390,000 20,206,875 *BRINKER INTERNATIONAL, INC......... 175,000 3,368,750 +CROWN CRAFTS, INC.................. 544,800 8,376,300 +*GADZOOKS, INC...................... 710,000 19,569,375 *HELEN OF TROY LTD.................. 400,000 8,800,000 *LANDRY'S SEAFOOD RESTAURANTS, INC............................... 1,000,000 18,093,750 *LINENS 'N THINGS, INC.............. 400,000 12,225,000 *OUTBACK STEAKHOUSE, INC............ 100,000 3,900,000 *PAPA JOHN'S INTERNATIONAL, INC..... 380,000 14,986,250 PILLOWTEX CORP..................... 360,000 14,445,000 *PLANET HOLLYWOOD INTERNATIONAL, INC. (CLASS A).................... 1,300,000 9,100,000 *RESTORATION HARDWARE, INC.......... 25,000 628,125 ST. JOHN KNITS, INC................ 610,000 23,561,250 +*VANS, INC.......................... 815,000 7,895,313 *WESTPOINT STEVENS, INC............. 650,000 21,450,000 *WILLIAMS-SONOMA, INC............... 500,000 15,906,250 --------------- 267,374,738 --------------- SHARES OR PRINCIPAL AMOUNT VALUE(1) ------------ --------------- CONSUMER STAPLES (12.7%) AMERICAN STORES CO................. 1,815,000 $ 43,900,313 HANNAFORD BROTHERS CO.............. 300,000 13,200,000 *KROGER CO.......................... 440,000 18,865,000 *MEYER (FRED), INC.................. 700,000 29,750,000 *SAFEWAY, INC....................... 500,000 20,343,750 *WHOLE FOODS MARKET, INC............ 225,000 13,612,500 --------------- 139,671,563 --------------- ENERGY (1.0%) *TRITON ENERGY LTD.................. 294,000 10,492,125 --------------- ENERGY SERVICES (1.4%) *BJ SERVICES CO..................... 531,000 15,432,188 --------------- FINANCE (3.6%) HARTFORD LIFE, INC. (CLASS A)...... 150,000 8,540,625 *REINSURANCE GROUP OF AMERICA (CLASS A)................................ 200,000 10,262,500 TRAVELERS PROPERTY CASUALTY CORP. (CLASS A)......................... 360,000 15,435,000 UNUM CORP.......................... 100,000 5,550,000 --------------- 39,788,125 --------------- HEALTH (13.2%) *AMERICAN ONCOLOGY RESOURCES, INC.................... 750,000 9,164,062 *CYTYC CORP......................... 510,000 8,319,375 *ESC MEDICAL SYSTEMS LTD............ 730,000 24,637,500 *INHALE THERAPEUTIC SYSTEMS......... 300,000 7,425,000 MENTOR CORP........................ 320,000 7,760,000 OMNICARE, INC...................... 200,000 7,625,000 *PAREXEL INTERNATIONAL CORP......... 330,000 12,003,750 +*RESMED, INC........................ 505,000 23,009,063 *SEROLOGICALS CORP.................. 350,000 11,287,500 *SHIRE PHARMACEUTICALS GROUP PLC ADR............................... 250,000 5,343,750 *SOFAMOR DANEK GROUP, INC........... 100,000 8,656,250 *TRANSKARYOTIC THERAPIES, INC....... 200,000 5,150,000 *WATSON PHARMACEUTICALS, INC........ 300,000 14,006,250 --------------- 144,387,500 --------------- MACHINERY & CAPITAL SPENDING (1.0%) APPLIED POWER, INC. (CLASS A)...... 200,000 6,875,000 GENERAL CABLE CORP................. 150,000 4,331,250 --------------- 11,206,250 --------------- METAL MINING & STEEL (1.1%) *GETCHELL GOLD CORP................. 780,000 11,992,500 ---------------
35 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - -------------------------- -------------------------- -- COLUMBIA SPECIAL FUND, INC. -- ------
COMMON STOCKS (CONTINUED) SHARES OR PRINCIPAL AMOUNT VALUE(1) ------------ --------------- POLLUTION CONTROL (6.0%) *AIR & WATER TECHNOLOGIES CORP. (CLASS A)......................... 2,300,000 $ 7,187,500 *ALLIED WASTE INDUSTRIES, INC....... 500,000 12,000,000 *CUNO, INC.......................... 360,000 7,785,000 *ESCO ELECTRONICS CORP.............. 360,000 6,840,000 *IONICS, INC........................ 360,000 13,275,000 +*OSMONICS, INC...................... 977,300 11,666,519 *U.S. FILTER CORP................... 250,000 7,015,625 --------------- 65,769,644 --------------- TECHNOLOGY (6.7%) ADOBE SYSTEMS, INC................. 200,000 8,487,500 *ADVANCED FIBRE COMMUNICATIONS, INC............................... 152,000 6,089,500 *COMPUTER HORIZONS CORP............. 30,000 1,111,875 *EDWARDS (J.D.) & CO................ 146,000 6,268,875 *HNC SOFTWARE, INC.................. 88,600 3,615,987 *INTERNATIONAL NETWORK SERVICES..... 171,000 7,011,000 *KEANE, INC......................... 120,000 6,720,000 *NETWORK APPLIANCE, INC............. 158,300 6,163,806 *SAVILLE SYSTEMS PLC ADR............ 133,000 6,666,625 *SS&C TECHNOLOGIES, INC............. 15,000 341,250 *STORAGE TECHNOLOGY CORP............ 16,400 711,350 TEXAS INSTRUMENTS, INC............. 100,000 5,831,250 *UNIPHASE CORP...................... 113,000 7,094,281 *WIND RIVER SYSTEMS, INC............ 54,500 1,955,188 *3COM CORP.......................... 185,000 5,677,188 --------------- 73,745,675 --------------- TRANSPORTATION (2.2%) +*CELADON GROUP, INC................. 500,000 9,500,000 *RENO AIR, INC...................... 500,000 3,468,750 *TRANS WORLD AIRLINES, INC.......... 1,135,000 11,775,625 --------------- 24,744,375 --------------- UTILITIES/ELECTRIC/GAS (1.1%) UNITED WATER RESOURCES, INC........ 650,000 11,700,000 --------------- TOTAL COMMON STOCKS (COST $879,519,314)............... 1,014,749,526 --------------- SHARES OR PRINCIPAL AMOUNT VALUE(1) ------------ --------------- WARRANT (0.0%) POLLUTION CONTROL (0.0%) *AIR & WATER TECHNOLOGIES CORP. (03/11/2001) (COST $272,842)................... 300,140 $ 337,657 --------------- TOTAL INVESTMENTS, EXCLUDING TEMPORARY CASH INVESTMENTS (COST $879,792,156)............... 1,015,087,183 --------------- REPURCHASE AGREEMENTS (8.8%) GOLDMAN SACHS CORP. 5.830% DATED 06/30/1998, DUE 07/01/1998 IN THE AMOUNT OF $56,543,482. COLLATERALIZED BY U.S. TREASURY BONDS 6.250% DUE 08/15/2023............. $56,534,452 56,534,452 J.P. MORGAN SECURITIES, INC. 5.830% DATED 06/30/1998, DUE 07/01/1998 IN THE AMOUNT OF $40,006,389. COLLATERALIZED BY U.S. TREASURY NOTES 5.625% TO 6.750% DUE 04/30/2000 TO 12/31/2002...... 40,000,000 40,000,000 --------------- TOTAL REPURCHASE AGREEMENTS (COST $96,534,452)................ 96,534,452 --------------- TOTAL INVESTMENTS (101.3%) (COST $976,326,608)................... 1,111,621,635 RECEIVABLES LESS LIABILITIES (-1.3%)... (14,098,322) --------------- NET ASSETS (100.0%).................... $ 1,097,523,313 --------------- ---------------
(1) See Note 1 of Notes to Financial Statements. * Non-income producing. + Affiliated issuers (Note 1). The accompanying notes are an integral part of the financial statements. 36 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ------------------------ ------------------------ -- COLUMBIA SMALL CAP FUND, INC. -- ------
SHARES OR JUNE 30, 1998 PRINCIPAL (UNAUDITED) AMOUNT VALUE(1) ----------- ------------- COMMON STOCKS (90.6%) BUILDING & FORESTRY PRODUCTS (2.8%) MARTIN MARIETTA MATERIALS, INC..... 58,000 $ 2,610,000 SOUTHDOWN, INC..................... 17,000 1,213,375 ------------- 3,823,375 ------------- BUSINESS & CONSUMER SERVICES (11.8%) *ASYMETRIX LEARNING SYSTEMS, INC.... 41,900 379,719 COGNIZANT CORP..................... 19,855 1,250,865 *DOLLAR THRIFTY AUTOMOTIVE GROUP, INC............................... 38,000 503,500 *FAMILY GOLF CENTERS, INC........... 74,250 1,879,453 G & K SERVICES, INC. (CLASS A)..... 33,300 1,452,713 *ITT EDUCATIONAL SERVICES, INC...... 71,500 2,305,875 *LAMALIE ASSOCIATES, INC............ 3,000 55,125 *NEFF CORP.......................... 27,500 319,688 *PMT SERVICES, INC.................. 125,000 3,179,687 *PROFIT RECOVERY GROUP INTERNATIONAL, INC................ 55,400 1,547,737 *ROMAC INTERNATIONAL, INC........... 50,000 1,518,750 SELECT APPOINTMENTS HOLDINGS PLC ADR.................. 33,000 973,500 *U.S. RENTALS, INC.................. 16,000 631,000 *UNITED ROAD SERVICES, INC.......... 22,000 420,750 ------------- 16,418,362 ------------- CONSUMER DURABLE (3.9%) *CHAMPION ENTERPRISES, INC.......... 56,300 1,646,775 *COASTCAST CORP..................... 60,000 1,080,000 KAUFMAN & BROAD HOME CORP.......... 25,000 793,750 WATSCO, INC........................ 55,500 1,952,906 ------------- 5,473,431 ------------- CONSUMER NON-DURABLE (10.1%) *BED, BATH & BEYOND, INC............ 12,200 632,113 *BON-TON STORES, INC................ 63,500 1,019,969 *BUILDING MATERIALS HOLDING CORP...................... 61,300 846,706 CKE RESTAURANTS, INC............... 71,380 2,944,425 *CAVANAUGHS HOSPITALITY CORP........ 16,000 209,000 *COLUMBIA SPORTSWEAR CO............. 12,000 228,000 *COST PLUS, INC..................... 61,000 1,814,750 *GIBSON GREETINGS, INC.............. 45,500 1,137,500 INTRAWEST CORP..................... 42,000 837,375 *MAXWELL SHOE CO., INC. (CLASS A)... 43,000 854,625 *OMEGA PROTEIN CORP................. 13,000 208,000 *SMED INTERNATIONAL, INC............ 33,000 594,000 SHARES OR PRINCIPAL AMOUNT VALUE(1) ----------- ------------- *WILLIAMS-SONOMA, INC............... 84,200 $ 2,678,612 ------------- 14,005,075 ------------- ENERGY (2.4%) *MERIDIAN RESOURCE CORP............. 75,000 529,688 *OCEAN ENERGY, INC.................. 38,720 757,460 *SWIFT ENERGY CO.................... 85,000 1,354,687 *TESORO PETROLEUM CORP.............. 43,500 690,563 ------------- 3,332,398 ------------- ENERGY SERVICES (2.3%) *HANOVER COMPRESSOR CO.............. 77,000 2,083,812 *TUBOSCOPE, INC..................... 37,000 730,750 *WILLBROS GROUP, INC................ 27,000 421,875 ------------- 3,236,437 ------------- FINANCE (4.1%) *INSIGNIA FINANCIAL GROUP, INC. (CLASS A)......................... 60,000 1,470,000 NORTH FORK BANCORP, INC............ 57,150 1,396,603 STIRLING COOKE BROWN HOLDINGS LTD...................... 25,400 714,375 TCF FINANCIAL CORP................. 20,100 592,950 *WILSHIRE FINANCIAL SERVICES GROUP, INC............................... 61,000 1,448,750 ------------- 5,622,678 ------------- FOOD & HOUSEHOLD PRODUCTS (0.9%) *AURORA FOODS, INC.................. 56,000 1,183,000 ------------- HEALTH (22.0%) *ACCESS HEALTH, INC................. 45,400 1,157,700 *ASSISTED LIVING CONCEPTS, INC...... 47,000 810,750 *BALANCE BAR CO..................... 54,700 786,313 *BARR LABORATORIES, INC............. 70,000 2,782,500 *CARDIAC PATHWAYS CORP.............. 95,000 676,875 *CONCENTRA MANAGED CARE, INC........ 96,000 2,496,000 *COVANCE, INC....................... 60,000 1,402,500 *ESC MEDICAL SYSTEMS LTD............ 91,250 3,079,687 *HEALTH MANAGEMENT SYSTEMS, INC...................... 75,000 843,750 *HEALTHCARE RECOVERIES, INC......... 52,500 1,036,875 *ICON PLC - SPONSORED ADR........... 28,800 727,200 *IDEXX LABORATORIES, INC............ 60,000 1,492,500 *INHALE THERAPEUTIC SYSTEMS......... 37,400 925,650 *INTELLIGENT POLYMERS LTD. (UNITS - EACH UNIT CONSISTS OF 1 SHARE & 1 WARRANT).............. 33,000 668,250 JONES PHARMA, INC.................. 83,500 2,765,937
37 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ------------------------ ------------------------ -- COLUMBIA SMALL CAP FUND, INC. -- ------
COMMON STOCKS (CONTINUED) SHARES OR PRINCIPAL AMOUNT VALUE(1) ----------- ------------- *LIGAND PHARMACEUTICALS, INC. (CLASS B)................................ 73,897 $ 951,424 *MEDCO RESEARCH, INC................ 48,000 1,224,000 *NEUREX CORP........................ 49,000 1,488,375 *SOMNUS MEDICAL TECHNOLOGIES, INC............................... 80,000 655,000 *SPIROS DEVELOPMENT CORP. II (UNITS - 1 CALLABLE COMMON SHARE OF SPIROS & 1 WARRANT OF DURABLE PHARMACEUTICALS).................. 30,000 483,750 *THERMO CARDIOSYSTEMS, INC.......... 50,000 1,137,500 *TRANSKARYOTIC THERAPIES, INC....... 45,000 1,158,750 *UNIVERSAL HEALTH SERVICES, INC. (CLASS B)......................... 9,500 554,563 *WATSON PHARMACEUTICALS, INC........ 25,400 1,185,862 ------------- 30,491,711 ------------- MACHINERY CAPITAL SPENDING (1.6%) GERBER SCIENTIFIC, INC............. 60,000 1,365,000 *MORRISON KNUDSEN CORP.............. 64,000 900,000 ------------- 2,265,000 ------------- MEDIA & ENTERTAINMENT (0.5%) NELSON (THOMAS), INC............... 51,000 682,125 ------------- METALS & MINING (1.0%) OREGON STEEL MILLS, INC............ 76,000 1,415,500 ------------- POLLUTION CONTROL (1.1%) *ALLIED WASTE INDUSTRIES, INC....... 63,500 1,524,000 ------------- TECHNOLOGY (22.5%) *ACTEL CORP......................... 100,000 1,075,000 *ACXIOM CORP........................ 80,000 1,995,000 *AMERICAN MANAGEMENT SYSTEMS, INC...................... 98,000 2,933,875 *ASCEND COMMUNICATIONS, INC......... 52,000 2,577,250 *AXENT TECHNOLOGIES, INC............ 49,800 1,525,125 *CERNER CORP........................ 105,800 2,995,462 *CYMER, INC......................... 11,000 177,375 *DAVOX CORP......................... 10,900 238,438 *DOCUMENTUM, INC.................... 11,900 571,200 *ETEC SYSTEMS, INC.................. 6,500 228,719 *ENGINEERING ANIMATION, INC......... 33,600 2,049,600 *HNC SOFTWARE, INC.................. 57,000 2,326,312 *HYPERION SOFTWARE CORP............. 62,400 1,778,400 *INFINIUM SOFTWARE, INC............. 50,000 693,750 *MICROS SYSTEMS, INC................ 71,200 2,356,275 *NETWORK APPLIANCE, INC............. 40,000 1,557,500 SHARES OR PRINCIPAL AMOUNT VALUE(1) ----------- ------------- *OBJECTIVE SYSTEMS INTEGRATORS, INC............................... 90,000 $ 663,750 *PEERLESS SYSTEMS CORP.............. 37,000 767,750 *PLATINUM SOFTWARE CORP............. 103,600 2,525,250 *RADISYS CORP....................... 5,500 118,250 *SYNOPSYS, INC...................... 6,500 297,375 *TRANSISTION SYSTEMS, INC........... 35,000 371,875 *XIRCOM, INC........................ 90,000 1,400,625 ------------- 31,224,156 ------------- TRANSPORTATION (1.3%) *EAGLE USA AIRFREIGHT, INC.......... 52,000 1,803,750 ------------- UTILITIES/COMMUNICATIONS (2.3%) *ANICOM, INC........................ 88,000 1,309,000 COMSAT CORP........................ 35,000 990,938 *INTERMEDIA COMMUNICATIONS, INC..... 22,000 922,625 ------------- 3,222,563 ------------- TOTAL COMMON STOCKS (COST $110,018,637)............... 125,723,561 ------------- REPURCHASE AGREEMENTS (10.0%) GOLDMAN SACHS CORP. 5.830% DATED 6/30/1998, DUE 07/01/1998 IN THE AMOUNT OF $6,940,270. COLLATERALIZED BY U.S. TREASURY BONDS 6.250% DUE 08/15/2023............. $6,939,162 6,939,162 J.P. MORGAN SECURITIES, INC. 5.830% DATED 6/30/1998, DUE 07/01/1998 IN THE AMOUNT OF $6,901,102. COLLATERALIZED BY U.S. TREASURY NOTES 5.625% TO 6.750% DUE 04/30/2000 TO 12/31/2002...... 6,900,000 6,900,000 ------------- TOTAL REPURCHASE AGREEMENTS (COST $13,839,162)................ 13,839,162 ------------- TOTAL INVESTMENTS (100.6%) (COST $123,857,799)................... 139,562,723 RECEIVABLES LESS LIABILITIES (-0.6%)... (812,886) ------------- NET ASSETS (100.0%).................... $ 138,749,837 ------------- -------------
(1) See Note 1 of Notes to Financial Statements. The accompanying notes are an integral part of the financial statements. 38 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ------------------- ------------------- -- COLUMBIA REAL ESTATE EQUITY FUND, INC. -- ------
SHARES OR JUNE 30, 1998 PRINCIPAL (UNAUDITED) AMOUNT VALUE(1) ----------- ------------- COMMON STOCKS (93.6%) REAL ESTATE APARTMENTS (16.1%) APARTMENT INVESTMENT & MANAGEMENT CO. (CLASS A)..................... 230,000 $ 9,085,000 AVALON BAY COMMUNITIES, INC........ 92,964 3,532,632 COLONIAL PROPERTIES TRUST.......... 156,100 4,839,100 EQUITY RESIDENTIAL PROPERTIES TRUST............................. 91,003 4,316,955 SECURITY CAPITAL PACIFIC TRUST..... 256,171 5,763,847 ------------- 27,537,534 ------------- COMMUNITY CENTERS (12.1%) *EXCEL LEGACY CORP.................. 142,100 620,977 EXCEL REALTY TRUST, INC............ 242,100 6,975,506 KIMCO REALTY CORP.................. 88,800 3,640,800 PAN PACIFIC RETAIL PROPERTIES, INC............................... 152,200 2,948,875 VORNADO REALTY TRUST............... 161,900 6,425,406 ------------- 20,611,564 ------------- INDUSTRIAL (30.3%) ALEXANDRIA REAL ESTATE EQUITIES, INC............................... 149,500 4,475,656 CABOT INDUSTRIAL TRUST............. 300,000 6,412,500 DUKE REALTY INVESTMENTS, INC....... 215,000 5,079,375 FIRST INDUSTRIAL REALTY TRUST, INC............................... 155,500 4,946,844 LIBERTY PROPERTY TRUST............. 186,700 4,772,519 PROLOGIS TRUST..................... 194,145 4,853,625 PUBLIC STORAGE, INC................ 229,000 6,412,000 SHURGARD STORAGE CENTERS, INC. (CLASS A)......................... 123,900 3,438,225 SPIEKER PROPERTIES, INC............ 151,500 5,870,625 STORAGE TRUST REALTY............... 51,200 1,196,800 TRINET CORPORATE REALTY TRUST, INC............................... 131,000 4,454,000 ------------- 51,912,169 ------------- LODGING (1.1%) STARWOOD HOTELS & RESORTS.......... 40,200 1,942,163 ------------- MANUFACTURED HOMES (2.4%) MANUFACTURED HOME COMMUNITIES, INC............................... 170,400 4,110,900 ------------- SHARES OR PRINCIPAL AMOUNT VALUE(1) ----------- ------------- OFFICE (15.8%) BOSTON PROPERTIES, INC............. 137,000 $ 4,726,500 EQUITY OFFICE PROPERTIES TRUST..... 308,418 8,751,361 MACK-CALI REALTY CORP.............. 189,400 6,510,625 PRENTISS PROPERTIES TRUST.......... 135,000 3,282,187 RECKSON ASSOCIATES REALTY CORP..... 156,800 3,704,400 *RECKSON SERVICE INDUSTRIES, INC.... 12,544 41,521 ------------- 27,016,594 ------------- OTHER (7.2%) CAPITAL AUTOMOTIVE REIT............ 165,000 2,340,938 *CATELLUS DEVELOPMENT CORP.......... 261,900 4,632,356 *SECURITY CAPITAL GROUP, INC. (CLASS B)................................ 202,900 5,402,213 ------------- 12,375,507 ------------- SHOPPING MALLS (8.6%) GENERAL GROWTH PROPERTIES, INC..... 143,000 5,344,625 MACERICH CO........................ 83,300 2,441,731 SIMON DEBARTOLO GROUP, INC......... 211,656 6,878,820 ------------- 14,665,176 ------------- TOTAL COMMON STOCKS (COST $143,317,639)............... 160,171,607 ------------- WARRANT (0.0%) OTHER (0.0%) *SECURITY CAPITAL GROUP, INC. 09/18/1997-09/18/1998 (COST $176,224)................... 22,497 7,733 ------------- TOTAL INVESTMENTS, EXCLUDING TEMPORARY CASH INVESTMENTS (COST $143,493,863)............... 160,179,340 ------------- REPURCHASE AGREEMENTS (5.8%) GOLDMAN SACHS CORP. 5.830% DATED 06/30/1998, DUE 07/01/1998 IN THE AMOUNT OF $8,856,584. COLLATERALIZED BY U.S. TREASURY BONDS 6.250% DUE 08/15/2023............. $8,855,170 8,855,170
39 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ------------------- ------------------- -- COLUMBIA REAL ESTATE EQUITY FUND, INC. -- ------
REPURCHASE AGREEMENTS (CONTINUED) SHARES OR PRINCIPAL AMOUNT VALUE(1) ----------- ------------- J.P. MORGAN SECURITIES, INC. 5.830% DATED 06/30/1998, DUE 07/01/1998 IN THE AMOUNT OF $1,100,176. COLLATERALIZED BY U.S. TREASURY NOTES 5.625% TO 6.750% DUE 04/30/2000 TO 12/31/2002...... $1,100,000 $ 1,100,000 ------------- TOTAL REPURCHASE AGREEMENTS (COST $9,955,170)................. 9,955,170 ------------- TOTAL INVESTMENTS (99.4%) (COST $153,449,033)................... 170,134,510 RECEIVABLES LESS LIABILITIES (0.6%).... 977,527 ------------- NET ASSETS (100.0%).................... $ 171,112,037 ------------- -------------
(1) See Note 1 of Notes to Financial Statements. * Non-income producing. The accompanying notes are an integral part of the financial statements. 40 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ------------------------ ------------------------ -- COLUMBIA BALANCED FUND, INC. -- ------
SHARES OR JUNE 30, 1998 PRINCIPAL (UNAUDITED) AMOUNT VALUE(1) ------------ ------------- COMMON STOCKS (52.0%) BUILDING & FORESTRY PRODUCTS (0.5%) CHAMPION INTERNATIONAL CORP........ 22,700 $ 1,116,556 FORT JAMES CORP.................... 22,300 992,350 *OWENS-ILLINOIS, INC................ 50,100 2,241,975 ------------- 4,350,881 ------------- BUSINESS & CONSUMER SERVICES (1.2%) *CENDANT CORP....................... 101,300 2,114,637 SERVICE CORPORATION INT'L.......... 223,700 9,591,138 ------------- 11,705,775 ------------- CHEMICALS (0.3%) DU PONT (E.I.) DE NEMOURS & CO................................ 37,000 2,761,125 ------------- CONSUMER DURABLE (0.3%) BLACK & DECKER CORP................ 44,900 2,738,900 ------------- CONSUMER NON-DURABLE (4.7%) DAYTON HUDSON CORP................. 96,400 4,675,400 LOWE'S COS., INC................... 174,600 7,082,212 MATTEL, INC........................ 204,750 8,663,484 MCDONALD'S CORP.................... 79,900 5,513,100 TANDY CORP......................... 177,400 9,413,288 WAL-MART STORES, INC............... 148,900 9,045,675 ------------- 44,393,159 ------------- ENERGY (2.8%) BRITISH PETROLEUM CO. PLC ADR...... 24,400 2,153,300 ELF AQUITANE S.A. ADR.............. 32,800 2,328,800 EXXON CORP......................... 106,000 7,559,125 MOBIL CORP......................... 76,800 5,884,800 ROYAL DUTCH PETROLEUM CO........... 70,900 3,886,206 TEXACO, INC........................ 74,300 4,434,781 ------------- 26,247,012 ------------- ENERGY SERVICES (1.1%) CAMCO INTERNATIONAL, INC........... 37,700 2,935,887 DIAMOND OFFSHORE DRILLING, INC..... 31,500 1,260,000 SCHLUMBERGER LTD................... 34,000 2,322,625 *SMITH INTERNATIONAL, INC........... 42,000 1,462,125 TRANSOCEAN OFFSHORE, INC........... 49,100 2,184,950 ------------- 10,165,587 ------------- FINANCE (8.8%) ALLSTATE CORP...................... 100,600 9,211,187 AMERICAN GENERAL CORP.............. 91,400 6,506,537 SHARES OR PRINCIPAL AMOUNT VALUE(1) ------------ ------------- BANC ONE CORP...................... 106,600 $ 5,949,612 BANKAMERICA CORP................... 75,800 6,551,962 CHASE MANHATTAN CORP............... 64,000 4,832,000 CHUBB CORP......................... 69,600 5,594,100 CITICORP........................... 30,500 4,552,125 FREDDIE MAC........................ 161,000 7,577,063 FIRST CHICAGO NBD CORP............. 43,900 3,890,638 FIRST UNION CORP................... 135,100 7,869,575 MORGAN STANLEY, DEAN WITTER, DISCOVER & CO..................... 69,100 6,314,013 NATIONSBANK CORP................... 107,600 8,231,400 TRAVELERS PROPERTY CASUALTY CORP. (CLASS A)......................... 124,900 5,355,088 ------------- 82,435,300 ------------- FOOD & HOUSEHOLD PRODUCTS (5.2%) AVON PRODUCTS, INC................. 27,900 2,162,250 COCA-COLA CO....................... 126,900 10,849,950 FORTUNE BRANDS, INC................ 60,500 2,325,469 GILLETTE CO........................ 99,200 5,623,400 *MEYER (FRED), INC.................. 84,200 3,578,500 PEPSICO, INC....................... 134,200 5,527,362 RITE AID CORP...................... 180,000 6,761,250 *SAFEWAY, INC....................... 187,000 7,608,562 SYSCO CORP......................... 184,300 4,722,688 ------------- 49,159,431 ------------- HEALTH (7.7%) AMERICAN HOME PRODUCTS CORP.............................. 209,600 10,846,800 BECTON DICKINSON & CO.............. 35,300 2,740,162 *BOSTON SCIENTIFIC CORP............. 85,900 6,152,588 BRISTOL-MYERS SQUIBB CO............ 84,100 9,666,244 LILLY (ELI) & CO................... 60,100 3,970,356 MERCK & CO., INC................... 55,400 7,409,750 PFIZER, INC........................ 124,600 13,542,462 SCHERING-PLOUGH CORP............... 82,800 7,586,550 WARNER-LAMBERT CO.................. 148,700 10,316,063 ------------- 72,230,975 ------------- MACHINERY CAPITAL SPENDING (4.3%) ALLIED SIGNAL, INC................. 155,800 6,913,625 EMERSON ELECTRIC CO................ 53,900 3,250,844 GENERAL ELECTRIC CO................ 176,000 16,016,000 TYCO INTERNATIONAL LTD............. 233,826 14,731,038 ------------- 40,911,507 -------------
41 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ------------------------ ------------------------ -- COLUMBIA BALANCED FUND, INC. -- ------
COMMON STOCKS (CONTINUED) SHARES OR PRINCIPAL AMOUNT VALUE(1) ------------ ------------- MEDIA & ENTERTAINMENT (1.0%) *CHANCELLOR MEDIA CORP.............. 120,900 $ 6,003,441 NEW YORK TIMES CO. (CLASS A)....... 49,500 3,922,875 ------------- 9,926,316 ------------- POLLUTION CONTROL (0.5%) *USA WASTE SERVICES, INC............ 59,000 2,913,125 WASTE MANAGEMENT, INC.............. 56,700 1,984,500 ------------- 4,897,625 ------------- TECHNOLOGY (9.6%) *BAY NETWORKS, INC.................. 216,800 6,991,800 *CADENCE DESIGN SYSTEMS, INC........ 184,300 5,759,375 *CISCO SYSTEMS, INC................. 71,750 6,605,484 COMPAQ COMPUTER CORP............... 123,600 3,507,150 COMPUTER ASSOCIATES INTERNATIONAL, INC............................... 106,000 5,889,625 *COMPUTER SCIENCES CORP............. 128,000 8,192,000 ERICSSON (LM) TELEPHONE CO. (CLASS B) ADR............................ 177,000 5,066,625 *GATEWAY 2000, INC.................. 120,400 6,095,250 INTERNATIONAL BUSINESS MACHINES CORP.............................. 69,700 8,002,431 LUCENT TECHNOLOGIES, INC........... 99,700 8,293,794 *MICROSOFT CORP..................... 137,200 14,869,050 *STORAGE TECHNOLOGY CORP............ 26,000 1,127,750 *STRUCTURAL DYNAMICS RESEARCH CORP.............................. 151,400 3,501,125 *TELLABS, INC....................... 87,700 6,281,513 ------------- 90,182,972 ------------- TRANSPORTATION (0.3%) *AMR CORP........................... 37,000 3,080,250 ------------- UTILITIES/COMMUNICATIONS (2.4%) AT&T CORP.......................... 22,300 1,273,888 AMERITECH CORP..................... 55,100 2,472,612 BELL ATLANTIC CORP................. 59,200 2,701,000 MCI COMMUNICATIONS CORP............ 47,800 2,778,375 SBC COMMUNICATIONS, INC............ 94,100 3,764,000 SPRINT CORP........................ 32,800 2,312,400 *WORLDCOM, INC...................... 147,700 7,154,219 ------------- 22,456,494 ------------- UTILITIES/ELECTRIC/GAS (1.3%) CMS ENERGY CORP.................... 40,400 1,777,600 DUKE ENERGY CORP................... 54,600 3,235,050 SHARES OR PRINCIPAL AMOUNT VALUE(1) ------------ ------------- HOUSTON INDUSTRIES, INC............ 91,500 $ 2,825,063 PECO ENERGY CO..................... 63,000 1,838,812 TEXAS UTILITIES CO................. 56,700 2,360,138 ------------- 12,036,663 ------------- TOTAL COMMON STOCKS (COST $368,045,722)............... 489,679,972 ------------- U.S. GOVERNMENT, FEDERAL AGENCY OBLIGATIONS (24.9%) U.S. TREASURY BONDS & NOTES (8.6%) U.S. TREASURY BONDS 8.875% 08/15/2017................ $13,150,000 17,925,094 8.125% 08/15/2019................ 12,315,000 15,888,271 U.S. TREASURY NOTES 6.875% 08/31/1999................ 33,610,000 34,098,387 6.500% 08/31/2001................ 12,735,000 13,077,253 ------------- 80,989,005 ------------- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) (2.0%) 7.000% 03/15/2028 - 04/15/2028... 16,267,508 16,533,644 7.500% 08/15/2025 - 03/15/2028... 2,592,361 2,665,544 ------------- 19,199,188 ------------- FEDERAL HOME LOAN MORTGAGE CORP. (FHLMC) (0.1%) 7.000% 05/01/2012................ 907,237 924,475 ------------- FEDERAL HOUSING ADMINISTRATION (FHA) (0.3%) FHA INSURED PROJECT POOL #55 7.430% 04/01/2022................ 1,881,858 1,991,952 FHA INSURED PROJECT POOL #53-43077 9.125% 07/25/2033................ 1,096,969 1,165,530 ------------- 3,157,482 ------------- AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS (13.9%) GNMA (3.0%) GNMA GTD. REMIC PASS THRU SECS. REMIC TR. 1997-4 CL. B 7.000% 08/20/2026.............. 4,030,066 4,110,515 GNMA GTD. REMIC PASS THRU SECS. REMIC TR. 1997-4 CL. C 7.000% 03/20/2027.............. 3,877,000 4,015,662 GNMA GTD. REMIC PASS THRU SECS. REMIC TR. 1997-4 CL. M 7.500% 02/16/2012.............. 2,292,063 2,303,795
42 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ------------------------ ------------------------ -- COLUMBIA BALANCED FUND, INC. -- ------
U.S. GOVERNMENT, FEDERAL AGENCY OBLIGATIONS (CONTINUED) SHARES OR PRINCIPAL AMOUNT VALUE(1) ------------ ------------- GNMA GTD. REMIC PASS THRU SECS. REMIC TR. 1997-4 CL. N 7.500% 02/16/2027.............. $ 3,193,098 $ 3,295,353 GNMA GTD. REMIC PASS THRU SECS. REMIC TR. 1996-15 CL. B 7.500% 08/20/2020.............. 8,493,000 8,643,128 GNMA GTD. REMIC PASS THRU SECS. REMIC TR. 1997-11 CL. M 8.000% 05/16/2024.............. 5,940,000 6,145,493 ------------- 28,513,946 ------------- FNMA (4.7%) FNMA GTD. REMIC PASS THRU CTF. REMIC TR. 1994-10 CL. UU 6.500% 01/25/2024.............. 857,000 856,875 FNMA GTD. REMIC PASS THRU CTF. REMIC TR. 1997-G1 CL. B 7.500% 06/20/2024.............. 4,480,000 4,632,178 FNMA GTD. REMIC PASS THRU CTF. REMIC TR. 1997-27 CL. B 7.000% 02/18/2025.............. 3,020,000 3,054,910 FNMA GTD. REMIC PASS THRU CTF. REMIC TR. 1997-17 CL. PE 7.000% 01/18/2026.............. 1,870,000 1,910,673 FNMA GTD. REMIC PASS THRU CTF. REMIC TR. 1997-46 CL. B 7.500% 03/17/2025.............. 3,900,000 3,986,428 FNMA GTD. REMIC PASS THRU CTF. REMIC TR. 1997-G4 CL. C 7.500% 06/17/2024.............. 6,650,000 6,805,309 FNMA GTD. REMIC PASS THRU CTF. REMIC TR. 1997-39 CL. B 7.500% 05/17/2027.............. 1,530,000 1,591,935 FNMA GTD. REMIC PASS THRU CTF. REMIC TR. 1997-38 CL. L 7.500% 02/17/2012.............. 1,043,645 1,046,264 FNMA GTD. REMIC PASS THRU CTF. REMIC TR. 1997-G5 CL. VA 7.500% 07/17/2012.............. 5,700,000 6,029,311 FNMA GTD. REMIC PASS THRU CTF. REMIC TR. 1997-63 CL. PH 7.000% 07/18/2026.............. 7,410,000 7,736,096 FNMA GTD. REMIC PASS THRU CTF. REMIC TR. 1997-74 CL. D 7.500% 09/20/2023.............. 3,245,000 3,306,976 SHARES OR PRINCIPAL AMOUNT VALUE(1) ------------ ------------- FNMA GTD. REMIC PASS THRU CTF. REMIC TR. 1997-68 CL. PJ 7.000% 10/18/2027.............. $ 3,000,000 $ 3,072,727 ------------- 44,029,682 ------------- FHLMC (6.1%) FHLMC MULTICLASS MTG. PARTN. CTFS. GTD. SERIES 1233 CL. H 7.000% 04/15/2007.............. 600,000 620,058 FHLMC MULTICLASS MTG. PARTN. CTFS. GTD. SERIES 1543 CL. XN 7.000% 07/15/2023.............. 5,617,000 5,916,118 FHLMC MULTICLASS MTG. PARTN. CTFS. GTD. SERIES 1971 CL. E 7.500% 01/20/2024.............. 4,825,552 4,911,847 FHLMC MULTICLASS MTG. PARTN. CTFS. GTD. SERIES 1971 CL. A 7.500% 07/15/2027.............. 3,000,000 3,058,835 FHLMC GNMA MULTICLASS MTG. PARTN. CTFS. GTD. SERIES G62 CL. B 7.500% 05/20/2024.............. 3,756,000 3,844,003 FHLMC MULTICLASS MTG. PARTN. CTFS. GTD. SERIES 1995 CL. D 7.500% 08/20/2012.............. 4,078,566 4,104,980 FHLMC MULTICLASS MTG. PARTN. CTFS. GTD. SERIES 1995 CL. A 7.500% 08/20/2027.............. 7,200,000 7,598,982 FHLMC MULTICLASS MTG. PARTN. CTFS. GTD. SERIES 1627 CL. EA 6.000% 05/15/2023.............. 2,892,000 2,759,623 FHLMC MULTICLASS MTG. PARTN. CTFS. GTD. SERIES 1763 CL. H 8.250% 07/15/2023.............. 130,000 137,903 FHLMC GNMA MULTICLASS MTG. PARTN. CTFS. GTD. SERIES G40 CL. N 6.500% 05/17/2021.............. 7,180,000 7,162,935 FHLMC MULTICLASS MTG. PARTN. CTFS. GTD. SERIES 1895 CL. B 7.500% 12/15/2023.............. 3,940,000 4,016,318 FHLMC MULTICLASS MTG. PARTN. CTFS. GTD. SERIES 1904 CL. C 7.250% 08/15/2024.............. 3,490,000 3,549,958 FHLMC MULTICLASS MTG. PARTN. CTFS. GTD. SERIES 1910 CL. D 8.000% 11/15/2024.............. 2,043,000 2,129,734
43 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ------------------------ ------------------------ -- COLUMBIA BALANCED FUND, INC. -- ------
U.S. GOVERNMENT, FEDERAL AGENCY OBLIGATIONS (CONTINUED) SHARES OR PRINCIPAL AMOUNT VALUE(1) ------------ ------------- FHLMC MULTICLASS MTG. PARTN. CTFS. GTD. SERIES 1933 CL. AE 7.000% 03/15/2025.............. $ 2,060,000 $ 2,080,733 FHLMC MULTICLASS MTG. PARTN. CTFS. GTD. SERIES 1933 CL. C 7.000% 03/15/2025.............. 2,440,000 2,469,173 FHLMC MULTICLASS MTG. PARTN. CTFS. GTD. SERIES 1933 CL. VC 7.550% 03/15/2012.............. 2,950,000 3,177,681 ------------- 57,538,881 ------------- OTHER AGENCY CMO (0.1%) PUERTO RICO HOUSING FINANCE CORP. SERIES A CL. 4 9.000% 07/20/2017.............. 427,270 427,270 ------------- TOTAL U.S. GOVERNMENT, FEDERAL AGENCY OBLIGATIONS (COST $228,149,035)............... 234,779,929 ------------- CORPORATE BONDS (13.2%) INDUSTRIAL (8.8%) BASIC INDUSTRY & MANUFACTURING (2.5%) ALUMINUM CO. OF AMERICA (144A) 6.500% 06/15/2018.............. 5,850,000 5,812,911 CATERPILLAR FINANCIAL SERVICES MEDIUM TERM NOTES 5.800% 03/15/2000.............. 3,890,000 3,891,478 GEORGIA-PACIFIC CORP. 9.950% 06/15/2002.............. 3,061,000 3,440,289 SANTA FE PACIFIC GOLD CORP. 8.375% 07/01/2005.............. 5,100,000 5,496,780 TYCO INTERNATIONAL GROUP S.A. 6.250% 06/15/2003.............. 4,500,000 4,489,065 ------------- 23,130,523 ------------- BUSINESS & CONSUMER SERVICES (1.2%) CINEMARK USA, INC. SERIES B 9.625% 08/01/2008.............. 350,000 360,500 COMCAST CORP. 9.500% 01/15/2008.............. 2,140,000 2,285,178 JONES INTERCABLE, INC. 8.875% 04/01/2007.............. 1,435,000 1,535,450 SHARES OR PRINCIPAL AMOUNT VALUE(1) ------------ ------------- LENFEST COMMUNICATIONS, INC. 8.375% 11/01/2005.............. $ 650,000 $ 690,625 SERVICE CORP. INTERNATIONAL 6.300% 03/15/2003.............. 5,000,000 4,993,250 TIME WARNER ENTERTAINMENT CO. L.P. 8.375% 03/15/2023.............. 1,320,000 1,546,129 ------------- 11,411,132 ------------- CONSUMER CYCLICAL (1.6%) ECKERD CORP. 9.250% 02/15/2004.............. 4,000,000 4,244,120 HILTON HOTELS CORP. 7.375% 06/01/2002.............. 3,500,000 3,546,655 WAL-MART STORES, INC. 5.650% 02/01/2000.............. 7,375,000 7,353,170 ------------- 15,143,945 ------------- CONSUMER STAPLES (1.7%) AETNA SERVICES, INC. 7.625% 08/15/2026.............. 3,650,000 3,894,185 AMERICAN HOME PRODUCTS CORP. 7.700% 02/15/2000.............. 2,975,000 3,057,705 AMGEN, INC. 8.125% 04/01/2097.............. 2,550,000 3,098,581 COCA-COLA ENTERPRISES, INC. 6.750% 01/15/2038.............. 4,150,000 4,185,524 NABISCO, INC. 6.700% 06/15/2002.............. 2,000,000 2,015,100 ------------- 16,251,095 ------------- ENERGY (1.4%) K N ENERGY, INC. 6.650% 03/01/2005.............. 4,075,000 4,086,369 OCCIDENTAL PETROLEUM CORP. 6.400% 04/01/2003.............. 5,000,000 4,989,950 UNION PACIFIC RESOURCES GROUP 6.750% 05/15/2008.............. 3,850,000 3,844,033 ------------- 12,920,352 ------------- TRANSPORTATION (0.4%) ALLIED HOLDING, INC. SERIES B 8.625% 10/01/2007.............. 500,000 502,500
44 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ------------------------ ------------------------ -- COLUMBIA BALANCED FUND, INC. -- ------
CORPORATE BONDS (CONTINUED) SHARES OR PRINCIPAL AMOUNT VALUE(1) ------------ ------------- FEDERAL EXPRESS CORP. PASS THRU TRUST SERIES 1997-1C 7.650% 01/15/2014.............. $ 2,167,837 $ 2,349,610 TEEKAY SHIPPING CORP. GUARANTEED FIRST PREFERRED SHIPPING MTG. NOTES 8.320% 02/01/2008.............. 1,000,000 1,035,000 ------------- 3,887,110 ------------- FINANCIAL (3.8%) BANKS-DOMESTIC (0.5%) AMSOUTH BANK N.A. BIRMINGHAM 6.450% 02/01/2008.............. 700,000 698,425 BANKAMERICA CORP. 5.758% 02/20/2002.............. 3,800,000 3,788,220 ------------- 4,486,645 ------------- BANKS-FOREIGN (0.6%) ABN AMRO BANK N. V. CHICAGO 7.250% 05/31/2005.............. 3,575,000 3,755,788 DEUTSCHE BANK FINANCIAL, INC. 6.700% 12/13/2006.............. 1,550,000 1,590,595 ------------- 5,346,383 ------------- FINANCE (1.2%) BEAR STEARNS CO., INC. MEDIUM TERM NOTES 5.724% 10/10/2000.............. 3,825,000 3,817,732 GOLDMAN SACHS GROUP L.P. (144A) 7.200% 03/01/2007.............. 2,800,000 2,955,792 HARTFORD LIFE, INC. 7.650% 06/15/2027.............. 2,555,000 2,837,251 MORGAN STANLEY DEAN WITTER DISCOVER CO. MEDIUM TERM SENIOR NOTES 5.750% 02/15/2001.............. 2,100,000 2,086,749 ------------- 11,697,524 ------------- REIT'S (1.6%) ERP OPERATING L.P. (144A) 8.500% 05/15/1999.............. 2,700,000 2,750,922 FIRST SECURITY CORP. 7.875% 10/15/1999.............. 1,325,000 1,353,196 SHARES OR PRINCIPAL AMOUNT VALUE(1) ------------ ------------- SECURITY CAPITAL INDUSTRIAL TRUST MEDIUM TERM NOTES 7.810% 02/01/2015.............. $ 3,250,000 $ 3,495,992 SIMON DEBARTOLO GROUP L.P. (144A) 6.625% 06/15/2003.............. 4,475,000 4,472,136 SPIEKER PROPERTIES L.P. 6.900% 01/15/2004.............. 2,450,000 2,485,231 ------------- 14,557,477 ------------- UTILITY (0.5%) TELECOMMUNICATIONS CABLE & WIRELESS COMMUNICATIONS P.L.C. 6.375% 03/06/2003............ 3,950,000 3,953,318 WORLDCOM, INC. 8.875% 01/15/2006............ 1,000,000 1,087,870 ------------- 5,041,188 ------------- TOTAL CORPORATE BONDS (COST $121,922,845)............... 123,873,374 ------------- OTHER SECURITIZED LOANS (7.5%) ASSET BACKED SECURITIES (2.0%) CITYSCAPE HOME EQUITY LOAN TRUST SERIES 1997-B CL. A-7 7.410% 05/25/2028.............. 4,150,000 4,291,253 THE MONEY STORE RESIDENTIAL TRUST SERIES 1997-II CL. A-4 7.385% 03/15/2029.............. 2,702,000 2,821,887 NEW CENTURY HOME EQUITY LOAN TRUST SERIES 1997-NC5 CL. A-5 7.130% 10/25/2028.............. 9,000,000 9,230,334 SALOMON BROTHERS MORTGAGE SECURITIES VII, INC. SERIES 1996-LB2 CL. A-8 7.800% 10/25/2026.............. 2,500,000 2,579,750 ------------- 18,923,224 ------------- COLLATERALIZED MORTGAGE OBLIGATIONS (5.5%) BEAR STEARNS MORTGAGE SECURITIES, INC. SERIES 1996-2 CL. A-1 6.671% 01/25/2025................ 4,359,970 4,367,186
45 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ------------------------ ------------------------ -- COLUMBIA BALANCED FUND, INC. -- ------
CORPORATE BONDS (CONTINUED) SHARES OR PRINCIPAL AMOUNT VALUE(1) ------------ ------------- BEAR STEARNS MORTGAGE SECURITIES, INC. SERIES 1996-8 CL. A-9 7.600% 11/25/2027................ $ 4,777,000 $ 4,822,524 BEAR STEARNS STRUCTURED SECURITIES, INC. (144A) SERIES 1995-1 CL. A 6.454% 09/25/2024................ 2,908,445 2,862,084 CMC SECURITIES CORP. IV SERIES 1997-2 CL. 1A-12 7.250% 11/25/2027................ 6,675,000 6,840,268 CWHL, INC. MTG. PASS THRU CTF. SERIES 1997-3 CL. A-10 7.500% 06/25/2027................ 1,721,205 1,720,823 DLJ MORTGAGE ACCEPTANCE CORP. SERIES 1998-2 CL. IIA-8 6.800% 06/25/2028................ 3,720,000 3,739,945 GE CAPITAL MORTGAGE SERVICES, INC. SERIES 1997-8 CL. A-6 7.250% 10/25/2027................ 2,525,000 2,591,007 HEADLANDS MORTGAGE SECURITIES, INC. SERIES 1997-3 CL. 1-A-6 7.000% 07/25/2027................ 4,980,000 5,043,037 ICIFC SECURED ASSETS CORP. SERIES 1997-1 CL. A-7 7.750% 03/25/2028................ 2,184,000 2,226,156 MORTGAGE OBLIGATION STRUCTURED TRUST (144A) SERIES 1993-1 CL. B-1 10.664% 10/25/2018............... 2,954,289 3,070,998 NORWEST ASSET SECURITIES CORP. SERIES 1997-16 CL. A-2 6.750% 10/25/2027................ 7,015,900 7,040,421 PNC MORTGAGE SECURITIES CORP. SERIES 1997-4 CL. IIPP-2 7.500% 07/25/2027................ 2,750,000 2,856,064 SHARES OR PRINCIPAL AMOUNT VALUE(1) ------------ ------------- RESIDENTIAL FUNDING MORTGAGE SECURITIES I, INC. SERIES 1997-S7 CL. A-3 7.500% 05/25/2027................ $ 3,171,000 $ 3,272,466 STRUCTURED ASSET MORTGAGE INVESTMENTS, INC. SERIES 1998-8 CL. 1-8-A 7.000% 07/25/2028................ 1,634,000 1,658,510 ------------- 52,111,489 ------------- TOTAL OTHER SECURITIZED LOANS (COST $69,612,176)................ 71,034,713 ------------- TOTAL INVESTMENTS, EXCLUDING TEMPORARY CASH INVESTMENT (COST $787,729,778)............... 919,367,988 ------------- REPURCHASE AGREEMENT (2.4%) GOLDMAN SACHS CORP. 5.830% DATED 06/30/1998, DUE 07/01/1998 IN THE AMOUNT OF $22,896,578. COLLATERALIZED BY U.S. TREASURY BONDS 6.250% DUE 08/15/2023. (COST $22,892,921).................. 22,892,921 22,892,921 ------------- TOTAL INVESTMENTS (100.0%) (COST $810,622,699)................... 942,260,909 RECEIVABLES LESS LIABILITIES (0.0%).... (430,522) ------------- NET ASSETS (100.0%).................... $ 941,830,387 ------------- -------------
(1) See Note 1 of Notes to Financial Statements. * Non-income producing. The accompanying notes are an integral part of the financial statements. 46 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ----------------------- ----------------------- -- COLUMBIA DAILY INCOME COMPANY -- ------
JUNE 30, 1998 PRINCIPAL (UNAUDITED) AMOUNT VALUE(1) ------------ --------------- COMMERCIAL PAPER (100.5%) AIR PRODUCTS & CHEMICALS, INC. 5.500% 09/25/1998................ $ 6,000,000 $ 5,920,251 5.500% 09/30/1998................ 3,500,000 3,450,806 ALABAMA POWER CO. 5.850% 07/07/1998................ 9,687,000 9,675,981 5.490% 08/20/1998................ 9,000,000 8,930,002 AMERICAN EXPRESS CREDIT CORP. 5.520% 07/20/1998................ 6,000,000 5,981,600 5.500% 08/06/1998................ 12,000,000 11,932,167 5.510% 08/07/1998................ 6,000,000 5,965,103 5.520% 08/21/1998................ 9,000,000 8,928,240 AMERICAN GENERAL CORP. 5.480% 08/13/1998................ 15,000,000 14,899,533 5.500% 09/11/1998................ 5,000,000 4,944,237 AMERICAN GENERAL FINANCE CORP. 5.500% 09/02/1998................ 8,000,000 7,921,778 AMGEN, INC. 5.510% 09/22/1998................ 20,000,000 19,742,867 ARCHER-DANIELS-MIDLAND CO. 5.490% 07/07/1998................ 7,000,000 6,992,527 5.480% 07/15/1998................ 10,000,000 9,977,167 5.510% 07/27/1998................ 6,000,000 5,975,205 ATLANTIC RICHFIELD CO. 5.470% 07/10/1998................ 10,000,000 9,984,806 5.510% 08/26/1998................ 15,000,000 14,869,138 5.530% 08/28/1998................ 5,000,000 4,954,685 AVCO FINANCIAL SERVICES, INC. 5.510% 07/30/1998................ 8,000,000 7,963,267 5.510% 08/27/1998................ 6,000,000 5,946,737 5.530% 11/03/1998................ 7,000,000 6,864,516 BANK OF AMERICA, FSB 5.500% 08/12/1998................ 10,000,000 9,934,306 5.540% 08/26/1998................ 10,000,000 9,912,284 BECTON, DICKINSON & CO. 5.470% 07/09/1998................ 8,000,000 7,989,060 5.470% 07/14/1998................ 13,000,000 12,972,346 BENEFICIAL CORP. 5.530% 07/24/1998................ 5,000,000 4,981,567 5.510% 09/03/1998................ 20,000,000 19,801,028 5.520% 09/04/1998................ 10,000,000 9,898,800 CIT GROUP HOLDINGS, INC. 5.520% 08/14/1998................ 13,000,000 12,910,300 5.500% 09/04/1998................ 12,000,000 11,879,000 CARGILL, INC. 5.470% 07/01/1998................ 12,500,000 12,498,100 PRINCIPAL AMOUNT VALUE(1) ------------ --------------- CARGILL FINANCIAL SERVICES CORP. 5.480% 07/08/1998................ $ 6,000,000 $ 5,992,693 CATERPILLAR FINANCIAL SERVICES CORP. 5.620% 07/01/1998................ 8,100,000 8,098,735 5.700% 07/06/1998................ 5,800,000 5,794,490 CHEVRON TRANSPORT CO. 5.520% 07/21/1998................ 5,000,000 4,983,900 5.480% 07/23/1998................ 9,000,000 8,968,490 5.480% 08/10/1998................ 10,000,000 9,937,589 COMMERCIAL CREDIT CO. 5.490% 07/20/1998................ 7,000,000 6,978,650 5.520% 07/21/1998................ 13,000,000 12,958,140 5.500% 09/11/1998................ 5,000,000 4,944,237 EASTMAN KODAK CO. 5.510% 07/02/1998................ 4,215,000 4,213,710 5.500% 07/08/1998................ 8,300,000 8,289,856 5.500% 07/13/1998................ 10,000,000 9,980,139 5.530% 07/20/1998................ 4,000,000 3,987,711 5.530% 08/17/1998................ 6,200,000 6,154,286 DEERE & CO. 5.510% 08/12/1998................ 8,000,000 7,947,349 DEERE (JOHN) CAPITAL CORP. 5.500% 07/06/1998................ 8,000,000 7,992,667 5.520% 07/30/1998................ 10,000,000 9,954,000 5.510% 09/02/1998................ 5,000,000 4,951,023 DISNEY (WALT) CO. 6.150% 07/01/1998................ 15,000,000 14,997,437 DUPONT (E.I.) DE NEMOURS & CO. 5.480% 09/03/1998................ 7,000,000 6,930,739 5.480% 09/04/1998................ 8,000,000 7,919,627 FLORIDA POWER CORP. 5.520% 07/02/1998................ 5,000,000 4,998,467 FORD MOTOR CREDIT CO. 6.000% 07/01/1998................ 8,000,000 7,998,667 5.700% 07/07/1998................ 8,900,000 8,890,136 5.470% 07/16/1998................ 10,000,000 9,975,689 5.580% 07/17/1998................ 5,000,000 4,986,825 5.510% 07/22/1998................ 9,000,000 8,969,695 GTE FUNDING, INC. 5.530% 07/08/1998................ 8,000,000 7,990,169 5.600% 07/27/1998................ 3,738,000 3,722,301 GENERAL ELECTRIC CAPITAL CORP. 5.490% 07/17/1998................ 6,000,000 5,984,445 5.520% 09/02/1998................ 5,000,000 4,950,934 5.490% 10/02/1998................ 6,000,000 5,913,990 5.500% 10/22/1998................ 5,000,000 4,912,918
47 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ----------------------- ----------------------- -- COLUMBIA DAILY INCOME COMPANY -- ------
COMMERCIAL PAPER (CONTINUED) PRINCIPAL AMOUNT VALUE(1) ------------ --------------- GENERAL MOTORS ACCEPTANCE CORP. 5.490% 08/31/1998................ $ 7,000,000 $ 6,933,815 5.490% 09/18/1998................ 13,000,000 12,841,400 5.490% 10/30/1998................ 13,000,000 12,758,135 GOLDMAN SACHS GROUP L.P. 5.510% 08/18/1998................ 7,000,000 6,947,502 5.510% 08/19/1998................ 10,000,000 9,923,472 5.500% 09/17/1998................ 8,000,000 7,903,445 5.500% 10/27/1998................ 10,000,000 9,818,195 HERSHEY FOODS CORP. 5.500% 07/22/1998................ 2,800,000 2,790,589 HOUSEHOLD FINANCE CORP. 5.510% 08/04/1998................ 10,000,000 9,946,431 5.500% 08/05/1998................ 8,000,000 7,956,000 5.510% 09/01/1998................ 10,000,000 9,903,575 LUBRIZOL CORP. 5.500% 09/10/1998................ 5,000,000 4,945,001 MARSH & MCLENNAN COS., INC. 5.450% 08/10/1998................ 9,000,000 8,944,137 5.450% 08/11/1998................ 10,000,000 9,936,417 MERRILL LYNCH & CO., INC. 6.000% 07/02/1998................ 5,500,000 5,498,167 5.530% 07/23/1998................ 8,000,000 7,971,736 5.530% 08/14/1998................ 6,000,000 5,958,525 5.480% 08/17/1998................ 8,000,000 7,941,547 5.520% 08/28/1998................ 5,000,000 4,954,767 5.520% 09/15/1998................ 8,000,000 7,905,547 METLIFE FUNDING, INC. 5.540% 08/24/1998................ 10,000,000 9,915,362 MINNESOTA MINING & MANUFACTURING CO. 5.470% 07/22/1998................ 7,000,000 6,976,601 MONSANTO CO. 5.500% 09/16/1998................ 8,000,000 7,904,667 5.500% 09/17/1998................ 10,000,000 9,879,306 5.500% 09/22/1998................ 2,800,000 2,764,067 5.490% 10/08/1998................ 6,000,000 5,908,500 MORGAN (J.P.) & CO., INC. 5.470% 07/16/1998................ 15,000,000 14,963,533 5.520% 09/10/1998................ 5,000,000 4,944,800 5.500% 09/14/1998................ 10,000,000 9,883,889 5.500% 11/16/1998................ 6,000,000 5,872,584 NALCO CHEMICAL CO. 5.510% 07/28/1998................ 10,000,000 9,957,145 5.700% 07/28/1998................ 9,000,000 8,960,100 PRINCIPAL AMOUNT VALUE(1) ------------ --------------- NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORP. 5.460% 07/17/1998................ $10,000,000 $ 9,974,217 5.520% 07/20/1998................ 5,500,000 5,483,133 5.500% 08/25/1998................ 5,000,000 4,957,223 NORWEST FINANCIAL, INC. 5.470% 07/24/1998................ 7,000,000 6,974,473 5.500% 07/29/1998................ 10,000,000 9,955,695 5.510% 07/31/1998................ 14,000,000 13,933,574 PACIFICORP 5.520% 07/07/1998................ 10,000,000 9,989,267 5.510% 07/14/1998................ 8,000,000 7,982,858 5.520% 08/25/1998................ 10,000,000 9,914,133 PITNEY BOWES CREDIT CORP. 5.750% 07/09/1998................ 1,100,000 1,098,419 PRUDENTIAL FUNDING CORP. 5.520% 07/09/1998................ 6,000,000 5,991,720 5.490% 08/07/1998................ 8,000,000 7,953,640 5.470% 08/11/1998................ 13,000,000 12,917,039 5.500% 08/21/1998................ 8,000,000 7,936,445 ST. PAUL COS., INC. 5.510% 07/02/1998................ 8,000,000 7,997,551 5.520% 08/06/1998................ 10,000,000 9,943,267 SONOCO PRODUCTS CO. 5.520% 07/06/1998................ 10,000,000 9,990,800 TEXACO, INC. 5.470% 07/10/1998................ 9,000,000 8,986,325 5.510% 08/03/1998................ 13,000,000 12,932,350 5.510% 08/05/1998................ 8,000,000 7,955,920 USAA CAPITAL CORP. 5.470% 07/14/1998................ 7,000,000 6,985,109 5.470% 10/21/1998................ 8,000,000 7,862,643 U.S. BANCORP 5.500% 07/13/1998................ 10,000,000 9,980,139 5.500% 07/24/1998................ 10,000,000 9,963,334 5.510% 08/17/1998................ 15,000,000 14,889,800 XEROX CREDIT CORP. 5.490% 07/15/1998................ 8,000,000 7,981,700 5.490% 08/11/1998................ 4,000,000 3,974,380 5.500% 11/06/1998................ 2,000,000 1,960,584 --------------- TOTAL COMMERCIAL PAPER (COST $1,032,041,803)............. 1,032,041,803 ---------------
48 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ----------------------- ----------------------- -- COLUMBIA DAILY INCOME COMPANY -- ------
PRINCIPAL AMOUNT VALUE(1) ------------ --------------- REPURCHASE AGREEMENT (0.2%) GOLDMAN SACHS CORP. 5.830% DATED 06/30/1998, DUE 07/01/1998 IN THE AMOUNT OF $1,912,389 COLLATERALIZED BY U.S. TREASURY BONDS 6.250% DUE 08/15/2023. (COST $1,912,084)................. $ 1,912,084 $ 1,912,084 --------------- TOTAL INVESTMENTS (100.7%) (COST $1,033,953,887, INCLUDING $6,628,430 ACCRUED INTEREST RECEIVABLE)........................... 1,033,953,887 CASH AND RECEIVABLES LESS LIABILITIES (-0.7%)............................... (7,578,635) --------------- NET ASSETS (100.0%).................... $ 1,026,375,252 --------------- ---------------
(1) See Note 1 of Notes to Financial Statements. The accompanying notes are an integral part of the financial statements. 49 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - -------------- -------------- -- COLUMBIA U.S. GOVERNMENT SECURITIES FUND, INC. -- ------
JUNE 30, 1998 PRINCIPAL (UNAUDITED) AMOUNT VALUE(1) ------------ ------------ U.S. TREASURY NOTES (98.9%) 6.875% 08/31/1999................ $ 1,325,000 $ 1,344,254 5.875% 11/15/1999................ 4,375,000 4,394,141 5.875% 02/15/2000................ 10,500,000 10,554,138 5.625% 11/30/2000................ 12,700,000 12,725,793 6.375% 03/31/2001................ 9,450,000 9,649,338 ------------ TOTAL U.S. TREASURY NOTES (COST $38,607,933)................ 38,667,664 REPURCHASE AGREEMENT (1.4%) GOLDMAN SACHS CORP. 5.830% DATED 06/30/1998, DUE 07/01/1998 IN THE AMOUNT OF $563,360. COLLATERALIZED BY U.S. TREASURY BONDS 6.250% DUE 08/15/2023. (COST $563,270)................... 563,270 563,270 ------------ TOTAL INVESTMENTS (100.3%) (COST $39,171,203).................... 39,230,934 RECEIVABLES LESS LIABILITIES (-0.3%)... (107,998) ------------ NET ASSETS (100.0%).................... $ 39,122,936 ------------ ------------
(1) See Note 1 of Notes to Financial Statements. The accompanying notes are an integral part of the financial statements. 50 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ---------------- ---------------- -- COLUMBIA FIXED INCOME SECURITIES FUND, INC. -- ------
JUNE 30, 1998 PRINCIPAL (UNAUDITED) AMOUNT VALUE(1) ------------ ------------- U.S. GOVERNMENT, FEDERAL AGENCY OBLIGATIONS (55.0%) U.S. TREASURY BONDS & NOTES (17.0%) U.S. TREASURY BONDS 12.000% 05/15/2005............... $ 4,880,000 $ 6,654,339 8.875% 08/15/2017................ 17,260,000 23,527,537 8.125% 08/15/2019................ 19,815,000 25,564,441 U.S. TREASURY NOTES 6.500% 08/31/2001................ 14,050,000 14,427,594 ------------- 70,173,911 ------------- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) (5.8%) 7.000% 11/15/2027 - 7/15/2028.... 20,366,969 20,700,173 7.500% 01/15/2028................ 3,081,781 3,168,779 ------------- 23,868,952 ------------- FEDERAL HOUSING ADMINISTRATION (FHA) (0.8%) FHA INSURED PROJECT POOL #051-11078 8.350% 04/01/2030................ 2,210,632 2,378,161 FHA INSURED PROJECT POOL #092-35499 8.450% 11/15/2031................ 787,845 821,328 ------------- 3,199,489 ------------- AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS (31.4%) GNMA (4.7%) GNMA GTD. REMIC PASS THRU SECS. REMIC TR. 1997-4 CL. M 7.500% 02/16/2012.............. 2,829,043 2,843,523 GNMA GTD. REMIC PASS THRU SECS. REMIC TR. 1997-4 CL. N 7.500% 02/16/2027.............. 4,007,202 4,135,528 GNMA GTD. REMIC PASS THRU SECS. REMIC TR. 1997-11 CL. M 8.000% 05/16/2024.............. 1,640,000 1,696,735 GNMA GTD. REMIC PASS THRU SECS. REMIC TR. 1996-23 CL. C 7.500% 12/20/2022.............. 3,607,000 3,714,094 GNMA GTD. REMIC PASS THRU SECS. REMIC TR. 1997-2 CL. K 7.500% 01/20/2024.............. 2,410,000 2,494,886 GNMA GTD. REMIC PASS THRU SECS. REMIC TR. 1998-1 CL. A 7.000% 01/20/2028.............. 1,890,000 1,937,164 PRINCIPAL AMOUNT VALUE(1) ------------ ------------- GNMA GTD. REMIC PASS THRU SECS. REMIC TR. 1998-9 CL. B 6.850% 12/20/2025.............. $ 2,260,000 $ 2,280,475 ------------- 19,102,405 ------------- FNMA (16.0%) FNMA GTD. REMIC PASS THRU CTF. REMIC TR. 1991-94 CL. C 0.000% 01/25/1999.............. 310,649 308,027 FNMA GTD. REMIC PASS THRU CTF. REMIC TR. 1997-G1 CL. B 7.500% 06/20/2024.............. 7,760,000 8,023,594 FNMA GTD. REMIC PASS THRU CTF. REMIC TR. 1997-17 CL. PE 7.000% 01/18/2026.............. 3,610,000 3,688,518 FNMA GTD. REMIC PASS THRU CTF. REMIC TR. 1997-24 CL. YL 7.000% 04/18/2027.............. 3,406,000 3,525,278 FNMA GTD. REMIC PASS THRU CTF. REMIC TR. 1997-G4 CL. C 7.500% 06/17/2024.............. 7,333,000 7,504,261 FNMA GTD. REMIC PASS THRU CTF. REMIC TR. 1997-39 CL. B 7.500% 05/17/2027.............. 2,673,000 2,781,204 FNMA GTD. REMIC PASS THRU CTF. REMIC TR. 1997-38 CL. G 7.500% 05/17/2026.............. 1,672,062 1,709,829 FNMA GTD. REMIC PASS THRU CTF. REMIC TR. 1997-38 CL. H 7.500% 05/17/2027.............. 1,766,000 1,858,112 FNMA GTD. REMIC PASS THRU CTF. REMIC TR. 1997-38 CL. L 7.500% 02/17/2012.............. 2,543,884 2,550,269 FNMA GTD. REMIC PASS THRU CTF. REMIC TR. 1997-43 CL. B 7.500% 08/18/2025.............. 9,840,000 10,087,579 FNMA GTD. REMIC PASS THRU CTF. REMIC TR. 1997-44 CL. PG 7.000% 02/18/2024.............. 4,120,000 4,249,435 FNMA GTD. REMIC PASS THRU CTF. REMIC TR. 1997-G5 CL. VD 7.250% 04/17/2010.............. 3,600,000 3,744,345 FNMA GTD. REMIC PASS THRU CTF. REMIC TR. 1997-63 CL. PH 7.000% 07/18/2026.............. 7,500,000 7,830,057 FNMA GTD. REMIC PASS THRU CTF. REMIC TR. 1997-75 CL. B 6.500% 09/18/2026.............. 3,070,660 3,062,771
51 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ---------------- ---------------- -- COLUMBIA FIXED INCOME SECURITIES FUND, INC. -- ------
U.S. GOVERNMENT, FEDERAL AGENCY OBLIGATIONS (CONTINUED) PRINCIPAL AMOUNT VALUE(1) ------------ ------------- FNMA GTD. REMIC PASS THRU CTF. REMIC TR. 1997-74 CL. D 7.500% 09/20/2023.............. $ 4,940,000 $ 5,034,349 ------------- 65,957,628 ------------- FHLMC (10.5%) FHLMC MULTICLASS MTG. PARTN. CTFS. GTD. SERIES 1558 CL. C 6.500% 07/15/2023.............. 2,141,000 2,139,833 FHLMC MULTICLASS MTG. PARTN. CTFS. GTD. SERIES 1971 CL. E 7.500% 01/20/2024.............. 10,120,147 10,301,126 FHLMC MULTICLASS MTG. PARTN. CTFS. GTD. SERIES 1971 CL. A 7.500% 07/15/2027.............. 4,041,000 4,120,251 FHLMC MULTICLASS MTG. PARTN. CTFS. GTD. SERIES 1995 CL. D 7.500% 08/20/2012.............. 7,129,796 7,175,969 FHLMC MULTICLASS MTG. PARTN. CTFS. GTD. SERIES 1995 CL. A 7.500% 08/20/2027.............. 3,300,000 3,482,867 FHLMC MULTICLASS MTG. PARTN. CTFS. GTD. SERIES 1763 CL. H 8.250% 07/15/2023.............. 692,000 734,070 FHLMC GNMA MULTICLASS MTG. PARTN. CTFS GTD. SERIES G40 CL. N 6.500% 05/17/2021.............. 4,700,000 4,688,829 FHLMC MULTICLASS MTG. PARTN. CTFS. GTD. SERIES 1910 CL. D 8.000% 11/15/2024.............. 1,970,000 2,053,635 FHLMC MULTICLASS MTG. PARTN. CTFS. GTD. SERIES 1933 CL. AE 7.000% 03/15/2025.............. 5,156,300 5,208,197 FHLMC MULTICLASS MTG. PARTN. CTFS. GTD. SERIES 1933 CL. C 7.000% 03/15/2025.............. 3,316,818 3,356,474 ------------- 43,261,251 ------------- OTHER AGENCY CMO (0.2%) PUERTO RICO HOUSING FINANCE CORP. SERIES A CL. 4 9.000% 07/20/2017.............. 773,706 773,706 ------------- TOTAL U.S. GOVERNMENT, FEDERAL AGENCY OBLIGATIONS (COST $219,647,253)............... 226,337,342 ------------- PRINCIPAL AMOUNT VALUE(1) ------------ ------------- CORPORATE BONDS (27.5%) INDUSTRIAL (14.5%) BASIC INDUSTRY & MANUFACTURING (5.2%) FOSTER WHEELER CORP. 6.750% 11/15/2005.............. $ 2,925,000 $ 2,908,942 GENERAL ELECTRIC CAPITAL CORP. MEDIUM TERM NOTES 6.350% 09/15/2001.............. 3,200,000 3,245,472 GEORGIA-PACIFIC CORP. 9.950% 06/15/2002.............. 3,250,000 3,652,707 ICI WILMINGTON, INC. 7.050% 09/15/2007.............. 3,805,000 4,002,365 PRECISION CASTPARTS CORP. 6.750% 12/15/2007.............. 1,650,000 1,671,582 TYCO INTERNATIONAL GROUP S.A. 6.125% 06/15/2001.............. 500,000 500,410 6.250% 06/15/2003.............. 5,575,000 5,561,453 ------------- 21,542,931 ------------- BUSINESS & CONSUMER SERVICES (2.2%) HERITAGE MEDIA CORP. 8.750% 02/15/2006.............. 1,250,000 1,331,250 HOLLINGER INTERNATIONAL PUBLISHING, INC. 8.625% 03/15/2005.............. 300,000 313,500 LENFEST COMMUNICATIONS, INC. 8.375% 11/01/2005.............. 1,350,000 1,434,375 NEWS AMERICA, INC. 6.750% 01/09/2038.............. 2,825,000 2,828,701 TIME WARNER ENTERTAINMENT CO. L.P. 8.375% 03/15/2023.............. 2,600,000 3,045,406 ------------- 8,953,232 ------------- CONSUMER CYCLICAL (2.3%) HILTON HOTELS CORP. 7.375% 06/01/2002.............. 4,000,000 4,053,320 SEARS ROEBUCK ACCEPTANCE CORP. MEDIUM TERM NOTES SERIES I 6.400% 10/11/2000.............. 4,525,000 4,566,902 SPECIALTY RETAILERS, INC. SERIES B 8.500% 07/15/2005.............. 1,000,000 1,025,000 ------------- 9,645,222 -------------
52 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ---------------- ---------------- -- COLUMBIA FIXED INCOME SECURITIES FUND, INC. -- ------
CORPORATE BONDS (CONTINUED) PRINCIPAL AMOUNT VALUE(1) ------------ ------------- CONSUMER STAPLES (3.9%) AETNA SERVICES, INC. 7.625% 08/15/2026.............. $ 5,000,000 $ 5,334,500 COCA-COLA ENTERPRISES, INC. 6.750 % 01/15/2038............. 3,850,000 3,882,956 NABISCO, INC. 6.000% 02/15/2001.............. 1,875,000 1,848,975 6.700% 06/15/2002.............. 3,750,000 3,778,313 TENET HEALTHCARE CORP. 8.625% 12/01/2003.............. 990,000 1,039,500 ------------- 15,884,244 ------------- ENERGY (0.3%) GULF CANADA RESOURCES LTD. 9.625% 07/01/2005.............. 1,250,000 1,362,500 ------------- TRANSPORTATION (0.6%) FEDERAL EXPRESS CORP. PASS THRU TRUST SERIES 1997-1C 7.650% 01/15/2014.............. 2,266,375 2,456,410 ------------- FINANCIAL (8.6%) BANKS-DOMESTIC (2.6%) BANKAMERICA CORP. 5.758% 02/20/2002.............. 3,500,000 3,489,150 FIRST BANK SYSTEM, INC. 5.875% 11/26/2010.............. 7,230,000 7,193,850 ------------- 10,683,000 ------------- BANKS-FOREIGN (1.2%) DEUTSCHE BANK FINANCIAL, INC. 6.700% 12/13/2006.............. 2,850,000 2,924,642 SWISS BANK CORP. N.Y. 7.250% 09/01/2006.............. 1,825,000 1,944,282 ------------- 4,868,924 ------------- FINANCE (1.2%) EQUITABLE COS., INC. 9.000% 12/15/2004.............. 855,000 976,786 GOLDMAN SACHS GROUP L.P. (144A) 7.200% 03/01/2007.............. 3,700,000 3,905,868 ------------- 4,882,654 ------------- REIT'S (3.6%) AMERICAN HEALTH PROPERTIES, INC. 7.500% 01/15/2007.............. 650,000 666,640 PRINCIPAL AMOUNT VALUE(1) ------------ ------------- EOP OPERATING L.P. (144A) 6.376% 02/15/2002.............. $ 3,925,000 $ 3,911,066 HEALTH CARE PROPERTY INVESTMENTS, INC. 6.500% 02/15/2006.............. 6,400,000 6,263,040 SIMON DEBARTOLO GROUP L.P. (144A) 6.625% 06/15/2003.............. 4,150,000 4,147,344 ------------- 14,988,090 ------------- UTILITIES (3.0%) ELECTRIC (1.7%) CALENERGY, INC. 9.875% 06/30/2003.............. 1,000,000 1,070,010 NIAGARA MOHAWK POWER CORP. SERIES D 7.250% 10/01/2002.............. 1,950,000 1,948,674 NORTHERN INDIANA PUBLIC SERVICE CO. MEDIUM TERM NOTES 6.900% 06/01/2000.............. 1,250,000 1,272,050 6.750% 06/01/2000.............. 2,500,000 2,537,450 ------------- 6,828,184 ------------- TELECOMMUNICATIONS (1.3%) FLAG LTD. (144A) 8.250% 01/30/2008.............. 500,000 503,750 MCI COMMUNICATIONS CORP. 6.125% 04/15/2002.............. 555,000 552,935 WORLDCOM, INC. 8.875% 01/15/2006.............. 900,000 979,083 US WEST CAPITAL FUNDING, INC. 6.875% 07/15/2028.............. 3,250,000 3,250,260 ------------- 5,286,028 ------------- YANKEE (1.4%) OTHER (1.4%) AFRICAN DEVELOPMENT BANK MEDIUM TERM NOTES 8.625% 05/01/2001.............. 5,300,000 5,678,897 ------------- TOTAL CORPORATE BONDS (COST $111,378,361)............... 113,060,316 ------------- OTHER SECURITIZED LOANS (15.1%) ASSET BACKED SECURITIES (3.2%) EMPIRE FUNDING HOME LOAN OWNER TRUST SERIES 1997-2 CL. A-5 7.960% 09/25/2023................ 2,796,000 2,924,569
53 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ---------------- ---------------- -- COLUMBIA FIXED INCOME SECURITIES FUND, INC. -- ------
OTHER SECURITIZED LOANS (CONTINUED) PRINCIPAL AMOUNT VALUE(1) ------------ ------------- SALOMON BROTHERS MORTGAGE SECURITIES VII, INC. SERIES 1996-LB2 CL. A-8 7.800% 10/25/2026................ $ 1,000,000 $ 1,031,900 SAXON ASSET SECURITIES CO. SERIES 1996-1 CL. A-2 8.060% 09/25/2027................ 6,265,000 6,547,176 STRUCTURED ASSET SECURITIES CORP. SERIES 1997-4 CL. 2-A2 7.000% 12/25/2027................ 2,500,000 2,534,899 ------------- 13,038,544 ------------- COLLATERALIZED MORTGAGE OBLIGATIONS (11.9%) BEAR STEARNS MORTGAGE SECURITIES, INC. SERIES 1996-2 CL. A-1 6.618% 01/25/2025................ 4,144,430 4,151,290 CMC SECURITIES CORP. IV SERIES 1997-2 CL. IA-12 7.250% 11/25/2027................ 2,860,000 2,930,811 DLJ MORTGAGE ACCEPTANCE CORP. SERIES 1998-2 CL. II-A-8 6.800% 06/25/2028................ 4,270,000 4,292,893 GE CAPITAL MORTGAGE SERVICES, INC. SERIES 1997-8 CL. A-6 7.250% 10/25/2027................ 2,480,000 2,544,831 GE CAPITAL MORTGAGE SERVICES, INC. SERIES 1997-8 CL. A-7 7.250% 10/25/2027................ 9,352,184 9,381,527 ICIFC SECURED ASSETS CORP. SERIES 1997-1 CL. A-7 7.750% 03/25/2028................ 2,660,000 2,711,344 MORTGAGE OBLIGATION STRUCTURED TRUST (144A) SERIES 1993-1 CL. B1 10.664% 10/25/2018............... 2,340,030 2,432,473 NORWEST ASSET SECURITIES CORP. SERIES 1997-16 CL. A-2 6.750% 10/25/2027................ 14,080,000 14,129,211 PNC MORTGAGE SECURITIES CORP. SERIES 1997-4 CL. IIPP-2 7.500% 07/25/2027................ 2,995,000 3,110,513 RESIDENTIAL FUNDING MORTGAGE SECURITIES, INC. SERIES 1993-S45 CL. A-10 8.000% 12/25/2023................ 1,250,000 1,282,609 PRINCIPAL AMOUNT VALUE(1) ------------ ------------- STRUCTURED ASSET MORTGAGE INVESTMENTS, INC. SERIES 1998-8 CL. 1-8-A 7.000% 07/25/2028................ $ 2,000,000 $ 2,030,000 ------------- 48,997,502 ------------- TOTAL OTHER SECURITIZED LOANS (COST $60,832,606)................ 62,036,046 ------------- TOTAL INVESTMENTS, EXCLUDING TEMPORARY CASH INVESTMENTS (COST $391,858,220)............... 401,433,704 ------------- REPURCHASE AGREEMENTS (5.4%) GOLDMAN SACHS CORP. 5.830% DATED 06/30/1998, DUE 07/01/1998 IN THE AMOUNT OF $ 16,476,355. COLLATERALIZED BY U.S. TREASURY BONDS 6.250% DUE 08/15/2023............. 16,473,724 16,473,724 J.P. MORGAN SECURITIES, INC. 5.830% DATED 06/30/1998, DUE 07/01/1998 IN THE AMOUNT OF $6,000,958. COLLATERALIZED BY U.S. TREASURY NOTES 5.625% TO 6.750% DUE 04/30/2000 TO 12/31/2002...... 6,000,000 6,000,000 ------------- TOTAL REPURCHASE AGREEMENTS (COST $22,473,724)................ 22,473,724 ------------- TOTAL INVESTMENTS (103.0%) (COST $414,331,944)................... 423,907,428 RECEIVABLES LESS LIABILITIES (-3.0%)... (12,371,186) ------------- NET ASSETS (100.0%).................... $ 411,536,242 ------------- -------------
(1) See Note 1 of Notes to Financial Statements. The accompanying notes are an integral part of the financial statements. 54 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - --------------------- --------------------- -- COLUMBIA MUNICIPAL BOND FUND, INC. -- ------
JUNE 30, 1998 PRINCIPAL (UNAUDITED) AMOUNT VALUE(1) ----------- ------------- STATE OF OREGON GENERAL OBLIGATION BONDS (8.1%) BOARD OF HIGHER EDUCATION REFUNDING SERIES B 6.250% 10/15/2012................ $ 740,000 $ 796,425 BOARD OF HIGHER EDUCATION SERIES A 0.000% 08/01/2014................ 450,000 203,625 5.900% 08/01/2018................ 1,000,000 1,068,750 ELDERLY & DISABLED HOUSING REFUNDING SERIES B 6.250% 08/01/2013................ 1,000,000 1,086,250 POLLUTION CONTROL SERIES C 5.625% 06/01/2013................ 2,545,000 2,576,812 5.900% 06/01/2014................ 3,270,000 3,327,225 VETERANS' WELFARE 9.000% 10/01/2000................ 1,010,000 1,119,837 11.000% 12/01/2000................ 865,000 1,003,400 0.000% 07/01/2001................ 1,200,000 1,065,000 6.000% 08/01/2002................ 2,000,000 2,147,500 6.000% 02/01/2004................ 695,000 754,944 9.000% 04/01/2004................ 280,000 346,150 9.000% 04/01/2005................ 1,060,000 1,344,875 8.250% 07/01/2005................ 500,000 616,250 9.000% 10/01/2005................ 1,640,000 2,109,450 7.250% 01/01/2007................ 1,485,000 1,780,144 9.200% 04/01/2007................ 2,370,000 3,172,838 8.250% 07/01/2007................ 540,000 689,850 9.200% 10/01/2007................ 1,250,000 1,693,750 7.300% 01/01/2008................ 255,000 310,781 8.000% 01/01/2008................ 1,220,000 1,546,350 7.300% 07/01/2008................ 1,125,000 1,380,938 8.000% 07/01/2008................ 480,000 613,800 5.850% 10/01/2015................ 1,075,000 1,155,625 5.200% 10/01/2018................ 2,000,000 2,005,000 ------------- TOTAL STATE OF OREGON GENERAL OBLIGATION BONDS (COST $32,016,030)................ 33,915,569 ------------- OREGON GENERAL OBLIGATION BONDS (18.6%) CLACKAMAS & WASHINGTON COUNTIES SCHOOL DISTRICT #3JT WEST LINN-WILSONVILLE 5.875% 10/01/2009................ 2,550,000 2,731,687 CLACKAMAS COUNTY SCHOOL DISTRICT #7J LAKE OSWEGO SERIES A 5.300% 06/15/2005................ 1,000,000 1,051,250 PRINCIPAL AMOUNT VALUE(1) ----------- ------------- 5.500% 06/15/2006................ $1,000,000 $ 1,060,000 5.700% 06/15/2010................ 2,735,000 2,892,262 CLACKAMAS COMMUNITY COLLEGE DISTRICT 5.250% 12/01/2009................ 1,270,000 1,350,962 DESCHUTES COUNTY ADMINISTRATIVE SCHOOL DISTRICT #1 5.000% 12/01/2017................ 1,500,000 1,490,625 DESCHUTES COUNTY ADMINISTRATIVE SCHOOL DISTRICT #1 BEND-LAPINE 0.000% 02/01/2000................ 1,175,000 1,104,500 0.000% 02/01/2001................ 1,135,000 1,024,337 0.000% 02/01/2002................ 1,445,000 1,249,925 EUGENE PUBLIC SAFETY 6.000% 06/01/2005................ 850,000 935,000 EUGENE PUBLIC SAFETY FACILITIES 5.625% 06/01/2013................ 1,295,000 1,371,081 JACKSON COUNTY SCHOOL DISTRICT #549C MEDFORD 5.375% 06/01/2012................ 1,200,000 1,236,000 LANE COUNTY AREA EDUCATION DISTRICT LANE COMMUNITY COLLEGE 5.300% 06/01/2007................ 1,000,000 1,066,250 4.850% 06/01/2008................ 4,080,000 4,212,600 5.000% 06/01/2009................ 1,000,000 1,043,750 LANE COUNTY SCHOOL DISTRICT #4J EUGENE 0.000% 01/01/2003................ 1,345,000 1,112,987 0.000% 01/01/2005................ 1,395,000 1,051,481 LANE COUNTY SCHOOL DISTRICT #4J EUGENE REFUNDING SERIES A 0.000% 07/01/2001................ 2,015,000 1,785,794 0.000% 07/01/2003................ 1,480,000 1,198,800 0.000% 07/01/2005................ 2,325,000 1,714,687 METRO OPEN SPACES PROGRAM SERIES C 5.100% 09/01/2009................ 2,375,000 2,455,156 METRO WASHINGTON PARK ZOO SERIES A 5.250% 01/15/2009................ 1,040,000 1,092,000 5.300% 01/15/2011................ 1,000,000 1,043,750
55 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - --------------------- --------------------- -- COLUMBIA MUNICIPAL BOND FUND, INC. -- ------
OREGON GENERAL OBLIGATION BONDS (CONTINUED) PRINCIPAL AMOUNT VALUE(1) ----------- ------------- MULTNOMAH-CLACKAMAS COUNTIES SCHOOL DISTRICT #10JT GRESHAM 5.250% 06/01/2017................ $1,620,000 $ 1,642,275 MULTNOMAH-CLACKAMAS COUNTIES SCHOOL DISTRICT #51JT RIVERDALE 5.750% 06/01/2016................ 2,270,000 2,394,850 MULTNOMAH COUNTY CERTIFICATE PARTICIPATION 4.550% 08/01/2010................ 2,725,000 2,697,750 MULTNOMAH COUNTY PUBLIC IMPROVEMENTS 5.250% 10/01/2013................ 1,800,000 1,845,000 MULTNOMAH COUNTY SCHOOL DISTRICT #7 REYNOLDS 5.250% 06/01/2011................ 1,500,000 1,554,375 MULTNOMAH COUNTY SCHOOL DISTRICT #40 DAVID DOUGLAS 7.100% 06/01/2002................ 880,000 972,400 PORT OF PORTLAND SERIES A 0.000% 03/01/2007................ 3,000,000 2,040,000 PORTLAND PUBLIC IMPROVEMENTS SERIES A 5.750% 06/01/2014................ 2,355,000 2,428,594 PORTLAND RECREATIONAL FACILITIES IMPROVEMENTS SERIES A 5.750% 06/01/2012................ 1,370,000 1,459,050 5.750% 06/01/2013................ 1,345,000 1,430,744 5.750% 06/01/2015................ 1,155,000 1,225,744 PORTLAND RECREATIONAL FACILITIES IMPROVEMENTS SERIES B 5.500% 06/01/2009................ 2,115,000 2,244,544 5.750% 06/01/2014................ 1,750,000 1,857,188 5.750% 06/01/2015................ 2,955,000 3,135,994 PORTLAND COMMUNITY COLLEGE DISTRICT 0.000% 07/01/2007................ 2,025,000 1,356,750 TRI-COUNTY METROPOLITAN TRANSPORTATION DISTRICT LIGHT RAIL EXTENSION SERIES A 6.000% 07/01/2012................ 3,495,000 3,717,806 PRINCIPAL AMOUNT VALUE(1) ----------- ------------- TUALATIN HILLS PARK & RECREATION DISTRICT 5.700% 03/01/2009................ $1,340,000 $ 1,430,450 5.750% 03/01/2010................ 730,000 778,363 WASHINGTON COUNTY REFUNDING 6.200% 12/01/2007................ 1,500,000 1,591,875 WASHINGTON & CLACKAMAS COUNTIES SCHOOL DISTRICT #23J TIGARD REFUNDING 5.400% 01/01/2010................ 1,720,000 1,784,500 WASHINGTON COUNTY SCHOOL DISTRICT #48J BEAVERTON SERIES B 6.150% 06/01/2008................ 1,010,000 1,049,138 WASHINGTON COUNTY SCHOOL DISTRICT #48J BEAVERTON SERIES C 7.800% 06/01/2003................ 1,200,000 1,389,000 WASHINGTON, MULTNOMAH & YAMHILL COUNTIES SCHOOL DISTRICT #1J 5.000% 11/01/2011................ 1,100,000 1,130,250 WILSONVILLE LIMITED TAX IMPROVEMENT 5.000% 12/01/2020................ 1,325,000 1,325,027 ------------- TOTAL OREGON GENERAL OBLIGATION BONDS (COST $73,873,476)................ 77,756,551 ------------- OREGON REVENUE BONDS (15.4%) ALBANY HOSPITAL FACILITY AUTHORITY MENNONITE HOME 5.625% 10/01/2017................ 375,000 383,437 CLACKAMAS COUNTY HOSPITAL FACILITY AUTHORITY ROBISON JEWISH HOME PROJECT 6.250% 10/01/2021................ 2,000,000 2,015,180 CLACKAMAS COUNTY HOSPITAL FACILITY AUTHORITY WILLAMETTE VIEW, INC. PROJECT 6.000% 11/01/2008................ 435,000 468,712 CLACKAMAS COUNTY HOSPITAL FACILITY AUTHORITY GNMA COLLATERAL JENNINGS LODGE 7.500% 10/20/2031................ 1,030,000 1,100,812 CLACKAMAS COUNTY HOUSING AUTHORITY MULTIFAMILY HOUSING EASTON RIDGE SERIES A 5.800% 12/01/2016................ 2,255,000 2,348,019
56 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - --------------------- --------------------- -- COLUMBIA MUNICIPAL BOND FUND, INC. -- ------
OREGON REVENUE BONDS (CONTINUED) PRINCIPAL AMOUNT VALUE(1) ----------- ------------- DESCHUTES COUNTY HOSPITAL FACILITY AUTHORITY 5.750% 01/01/2009................ $1,670,000 $ 1,757,675 DESCHUTES VALLEY WATER DISTRICT 5.875% 09/01/2005................ 3,420,000 3,697,875 EUGENE ELECTRIC UTILITY REFUNDING 5.800% 08/01/2008................ 1,435,000 1,504,956 5.800% 08/01/2009................ 1,300,000 1,358,500 6.000% 08/01/2011................ 1,375,000 1,445,469 GRESHAM SEWER 5.350% 06/01/2006................ 860,000 908,375 GRESHAM STORMWATER 6.100% 10/01/2009................ 1,115,000 1,218,137 HILLSBORO HOSPITAL FACILITY AUTHORITY TUALITY HEALTHCARE 5.750% 10/01/2012................ 3,395,000 3,522,313 LEBANON WASTEWATER REFUNDING 5.750% 06/01/2011................ 1,225,000 1,280,125 NORTH CLACKAMAS PARKS & RECREATION DISTRICT RECREATIONAL FACILITIES 5.700% 04/01/2013................ 2,840,000 2,974,900 NORTHERN WASCO COUNTY PEOPLE'S UTILITY DISTRICT ELECTRIC 0.000% 02/01/2006................ 610,000 420,900 0.000% 02/01/2007................ 585,000 375,131 0.000% 02/01/2008................ 610,000 362,950 0.000% 02/01/2011................ 500,000 240,000 OREGON HOUSING FINANCIAL 5.800% 07/01/2009................ 420,000 421,785 OREGON HEALTH, HOUSING, EDUCATIONAL & CULTURAL FACILITIES AUTHORITY GOODWILL INDUSTRIES LANE COUNTY SERIES A 6.650% 11/15/2022................ 4,300,000 4,294,625 OREGON HEALTH, HOUSING, EDUCATIONAL & CULTURAL FACILITIES AUTHORITY REED COLLEGE PROJECT SERIES A 5.300% 07/01/2011................ 500,000 513,125 PRINCIPAL AMOUNT VALUE(1) ----------- ------------- OREGON HOUSING & COMMUNITY SERVICES DEPARTMENT HOUSING FINANCE ASSISTED INSURED MULTI-UNIT B 6.800% 07/01/2013................ $8,270,000 $ 8,755,863 OREGON HOUSING & COMMUNITY SERVICES DEPARTMENT MORTGAGE SINGLE-FAMILY MORTGAGE PG-SERIES A 4.850% 07/01/2010................ 310,000 312,713 5.100% 07/01/2014................ 430,000 432,150 6.800% 07/01/2016................ 2,005,000 2,145,350 OREGON HOUSING & COMMUNITY SERVICES DEPARTMENT MORTGAGE SINGLE-FAMILY MORTGAGE PROGRAM SERIES D 6.700% 07/01/2013................ 1,000,000 1,053,750 OREGON HOUSING & COMMUNITY SERVICES DEPARTMENT MORTGAGE SINGLE-FAMILY MORTGAGE PROGRAM SERIES E 6.750% 07/01/2016................ 2,660,000 2,660,000 PORT OF ST HELENS POLLUTION CONTROL PORTLAND GENERAL ELECTRIC-B 4.800% 06/01/2010................ 2,000,000 1,995,000 PORT OF ST. HELENS POLLUTION CONTROL PORTLAND GENERAL ELECTRIC CO. 4.800% 04/01/2010................ 2,300,000 2,294,250 PORTLAND HYDROELECTRIC POWER 6.800% 10/01/2004................ 465,000 467,999 PORTLAND PARKING REFUNDING 6.375% 10/01/2012................ 1,700,000 1,770,125 PORTLAND WATER SYSTEM 5.250% 08/01/2013................ 2,000,000 2,047,500 5.000% 08/01/2017................ 3,685,000 3,694,213 PRINEVILLE SEWER FIRST LIEN 6.500% 07/01/2004................ 500,000 538,125 6.800% 07/01/2012................ 1,050,000 1,166,813 REEDSPORT WATER 7.000% 10/01/2014................ 520,000 588,250 SHERIDAN WATER REFUNDING 5.350% 04/01/2018................ 300,000 301,125
57 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - --------------------- --------------------- -- COLUMBIA MUNICIPAL BOND FUND, INC. -- ------
OREGON REVENUE BONDS (CONTINUED) PRINCIPAL AMOUNT VALUE(1) ----------- ------------- SOUTH FORK WATER BOARD FIRST LIEN 5.450% 02/01/2014................ $1,300,000 $ 1,327,625 ------------- TOTAL OREGON REVENUE BONDS (COST $61,358,100)................ 64,163,852 ------------- OREGON INSURED BONDS (40.2%) CENTRAL OREGON COMMUNITY COLLEGE DISTRICT 5.800% 06/01/2007................ 760,000 811,300 CHEMEKETA COMMUNITY COLLEGE DISTRICT SERIES B 5.600% 06/01/2014................ 1,180,000 1,256,700 CLACKAMAS & WASHINGTON COUNTIES SCHOOL DISTRICT #3JT 5.750% 06/01/2010................ 590,000 651,212 CLACKAMAS COUNTY HEALTH FACILITY AUTHORITY REVENUE REFUNDING ADVENTIST HEALTH A 6.350% 03/01/2009................ 1,500,000 1,621,875 CLATSOP COUNTY ADMINISTRATIVE SCHOOL DISTRICT #10 5.875% 07/01/2012................ 630,000 654,412 CROOK COUNTY SCHOOL DISTRICT 4.900% 02/01/2009................ 1,165,000 1,179,562 DESCHUTES & JEFFERSON COUNTIES SCHOOL DISTRICT #2J REDMOND REFUNDING 5.600% 06/01/2009................ 1,000,000 1,043,750 EMERALD PEOPLES UTILITIES DISTRICT 7.200% 11/01/2006................ 480,000 573,600 7.350% 11/01/2010................ 2,160,000 2,724,300 7.350% 11/01/2011................ 2,000,000 2,535,000 7.350% 11/01/2012................ 2,490,000 3,162,300 7.350% 11/01/2013................ 2,675,000 3,420,656 EUGENE ELECTRIC UTILITY REVENUE REFUNDING 4.700% 08/01/2008................ 1,225,000 1,246,437 HOOD RIVER COUNTY SCHOOL DISTRICT 5.650% 06/01/2008................ 1,020,000 1,079,925 JOSEPHINE COUNTY SCHOOL DISTRICT #7 GRANTS PASS 5.700% 06/01/2013................ 2,000,000 2,122,500 KLAMATH COUNTY 5.100% 06/01/2008................ 1,015,000 1,068,287 PRINCIPAL AMOUNT VALUE(1) ----------- ------------- 5.150% 06/01/2009................ $ 700,000 $ 738,500 LANE COUNTY SCHOOL DISTRICT #1 PLEASANT HILL 5.350% 12/01/2012................ 650,000 674,375 5.450% 12/01/2013................ 725,000 754,000 LANE COUNTY SCHOOL DISTRICT #19 SPRINGFIELD REFUNDING 5.250% 10/15/2006................ 1,340,000 1,425,425 6.000% 10/15/2012................ 740,000 822,325 6.000% 10/15/2014................ 1,310,000 1,462,287 LANE COUNTY SCHOOL DISTRICT #52 BETHEL 6.250% 12/01/2007................ 580,000 656,850 6.400% 12/01/2009................ 750,000 849,375 LINCOLN COUNTY SCHOOL DISTRICT 6.000% 06/15/2006................ 900,000 1,001,250 6.000% 06/15/2007................ 1,855,000 2,079,919 6.000% 06/15/2008................ 1,150,000 1,296,625 6.000% 06/15/2009................ 2,465,000 2,766,962 5.600% 06/15/2010................ 3,480,000 3,767,100 5.250% 06/15/2012................ 3,815,000 3,948,525 MALHEUR COUNTY SCHOOL DISTRICT #26 NYSSA 5.750% 06/01/2015................ 1,910,000 2,017,437 MARION & LINN COUNTY ELEMENTARY SCHOOL DISTRICT #77J STAYTON 6.250% 07/01/2013................ 1,260,000 1,395,450 MARION COUNTY SCHOOL DISTRICT #103C WOODBURN SERIES B 0.000% 11/01/2006................ 2,000,000 1,387,500 0.000% 11/01/2007................ 2,000,000 1,322,500 0.000% 11/01/2009................ 2,500,000 1,503,125 0.000% 11/01/2011................ 2,010,000 1,085,400 MILWAUKIE, OR 4.650% 06/01/2009................ 405,000 409,556 4.750% 06/01/2010................ 425,000 432,437 4.850% 06/01/2011................ 340,000 344,250 MORROW COUNTY SCHOOL DISTRICT #1 6.000% 06/01/2006................ 880,000 976,800 MULTNOMAH COUNTY EDUCATIONAL FACILITIES UNIVERSITY OF PORTLAND PROJECT 5.000% 04/01/2018................ 1,500,000 1,494,375
58 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - --------------------- --------------------- -- COLUMBIA MUNICIPAL BOND FUND, INC. -- ------
OREGON INSURED BONDS (CONTINUED) PRINCIPAL AMOUNT VALUE(1) ----------- ------------- MULTNOMAH COUNTY SCHOOL DISTRICT #3 PARKROSE 5.400% 12/01/2005................ $1,010,000 $ 1,069,337 5.700% 12/01/2008................ 1,330,000 1,428,087 5.700% 12/01/2009................ 1,970,000 2,100,513 5.500% 12/01/2010................ 895,000 938,631 5.500% 12/01/2011................ 1,000,000 1,047,500 NORTHERN OREGON CORRECTIONS 5.250% 09/15/2012................ 1,000,000 1,030,000 5.300% 09/15/2013................ 1,000,000 1,035,000 ONTARIO OREGON CATHOLIC HEALTH HOLY ROSARY MEDICAL CENTER 5.500% 11/15/2012................ 1,500,000 1,586,250 OREGON DEPARTMENT OF ADMINISTRATIVE SERVICES CERTIFICATES PARTICIPATION SERIES A 5.375% 11/01/2004................ 1,500,000 1,590,000 5.250% 05/01/2008................ 4,950,000 5,209,875 5.300% 05/01/2008................ 750,000 795,938 5.250% 11/01/2009................ 2,460,000 2,573,775 5.700% 05/01/2015................ 1,000,000 1,063,750 5.375% 11/01/2016................ 4,695,000 4,824,113 OREGON DEPARTMENT OF ADMINISTRATIVE SERVICES CERTIFICATES PARTICIPATION SERIES B 5.500% 11/01/2011................ 1,635,000 1,731,056 5.000% 11/01/2013................ 1,000,000 1,015,000 5.000% 11/01/2014................ 500,000 505,625 OREGON DEPARTMENT OF ADMINISTRATIVE SERVICES CERTIFICATES PARTICIPATION SERIES C 5.500% 05/01/2011................ 2,000,000 2,112,500 5.750% 05/01/2017................ 2,000,000 2,125,000 OREGON DEPARTMENT OF GENERAL SERVICES CERTIFICATES PARTICIPATION SERIES C 5.800% 03/01/2015................ 840,000 875,700 OREGON HEALTH SCIENCES UNIVERSITY REVENUE SERIES A 0.000% 07/01/2009................ 1,530,000 918,000 0.000% 07/01/2012................ 1,315,000 670,650 0.000% 07/01/2014................ 2,495,000 1,138,344 0.000% 07/01/2015................ 4,325,000 1,865,156 PRINCIPAL AMOUNT VALUE(1) ----------- ------------- OREGON HEALTH SCIENCES UNIVERSITY REVENUE SERIES B 4.875% 07/01/2007................ $1,695,000 $ 1,737,375 OREGON HEALTH, HOUSING, EDUCATIONAL & CULTURAL FACILITIES AUTHORITY LEWIS & CLARK COLLEGE 6.000% 10/01/2013................ 965,000 1,054,263 PORT OF PORTLAND AIRPORT REVENUE PORTLAND INTERNATIONAL AIRPORT SERIES 7-A 6.500% 07/01/2004................ 500,000 535,625 6.750% 07/01/2015................ 3,470,000 3,751,938 PORT OF PORTLAND AIRPORT REVENUE SERIES 9-A 5.500% 07/01/2006................ 500,000 523,750 PORTLAND ARENA GAS TAX REVENUE 0.000% 06/01/2016................ 1,100,000 398,750 0.000% 06/01/2017................ 1,420,000 481,025 PORTLAND COMMUNITY COLLEGE DISTRICT 5.000% 07/01/2011................ 2,000,000 2,047,500 PORTLAND GAS TAX REVENUE SERIES A 5.800% 06/01/2016................ 1,625,000 1,726,563 PORTLAND SEWER SYSTEM REVENUE SERIES A 5.000% 06/01/2009................ 1,075,000 1,112,625 5.000% 06/01/2015................ 5,500,000 5,527,500 SALEM-KEIZER SCHOOL DISTRICT #24J 5.400% 06/01/2006................ 1,000,000 1,052,500 SALEM PEDESTRIAN SAFETY IMPROVEMENTS 5.400% 05/01/2009................ 1,000,000 1,050,000 SALEM WATER & SEWER 6.000% 06/01/2005................ 1,080,000 1,186,650 TILLAMOOK COUNTY 6.250% 01/01/2014................ 960,000 1,058,400 5.700% 01/15/2016................ 700,000 741,125 TUALATIN VALLEY WATER DISTRICT 5.000% 06/01/2018................ 2,045,000 2,042,444 UMATILLA COUNTY SCHOOL DISTRICT #6R UMATILLA 5.080% 06/15/2018................ 1,455,000 1,442,269
59 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - --------------------- --------------------- -- COLUMBIA MUNICIPAL BOND FUND, INC. -- ------
OREGON INSURED BONDS (CONTINUED) PRINCIPAL AMOUNT VALUE(1) ----------- ------------- UMATILLA COUNTY SCHOOL DISTRICT #8R HERMISTON 4.400% 12/01/2011................ $1,000,000 $ 968,750 UMATILLA COUNTY SCHOOL DISTRICT #16R PENDLETON 4.650% 07/01/2010................ 1,660,000 1,660,000 WASHINGTON COUNTY SCHOOL DISTRICT #13 5.350% 06/01/2011................ 355,000 371,863 5.350% 06/01/2012................ 440,000 457,600 5.400% 06/01/2013................ 485,000 504,400 WASHINGTON COUNTY SCHOOL DISTRICT #15 5.250% 06/01/2009................ 1,000,000 1,058,750 WASHINGTON COUNTY SCHOOL DISTRICT #48J BEAVERTON SERIES A 5.200% 12/01/2009................ 1,740,000 1,813,950 WASHINGTON COUNTY SCHOOL DISTRICT #88J SHERWOOD 6.100% 06/01/2012................ 1,000,000 1,090,000 WASHINGTON COUNTY UNIFIED SEWER AGENCY REVENUE 5.500% 10/01/2016................ 1,500,000 1,571,250 WASHINGTON COUNTY UNIFIED SEWER AGENCY REVENUE SERIES A 0.000% 10/01/2003................ 1,975,000 1,582,469 0.000% 10/01/2005................ 5,230,000 3,811,363 0.000% 10/01/2007................ 4,835,000 3,197,144 5.750% 10/01/2009................ 3,350,000 3,722,688 5.750% 10/01/2010................ 2,000,000 2,222,500 5.750% 10/01/2011................ 1,825,000 2,025,750 5.400% 10/01/2012................ 520,000 545,350 5.750% 10/01/2012................ 2,000,000 2,232,500 WASHINGTON COUNTY UNIFIED SEWER AGENCY UNREFUNDED SERIES A 5.900% 10/01/2006................ 1,050,000 1,136,625 WESTERN LANE HOSPITAL DISTRICT FACILITY AUTHORITY REVENUE REFUNDING SISTERS ST. JOSEPH PEACE 5.625% 08/01/2007................ 2,080,000 2,230,800 YAMHILL COUNTY SCHOOL DISTRICT #29J NEWBERG 5.500% 06/01/2010................ 1,405,000 1,499,838 5.750% 06/01/2011................ 2,280,000 2,508,000 6.100% 06/01/2011................ 3,355,000 3,711,469 PRINCIPAL AMOUNT VALUE(1) ----------- ------------- YAMHILL COUNTY SCHOOL DISTRICT #40 6.000% 06/01/2009................ $ 500,000 $ 561,250 5.350% 06/01/2010................ 500,000 529,375 5.600% 06/01/2016................ 500,000 524,375 ------------- TOTAL OREGON INSURED BONDS (COST $160,229,855)............... 168,022,325 ------------- OREGON PRE-REFUNDED BONDS (5.6%) CHEMEKETA COMMUNITY COLLEGE DISTRICT 5.950% 06/01/2016................ 1,600,000 1,780,000 CLACKAMAS & WASHINGTON COUNTIES SCHOOL DISTRICT #3JT WEST LINN-WILSONVILLE 5.875% 08/01/2009................ 1,000,000 1,068,750 CLACKAMAS COUNTY HOSPITAL FACILITY AUTHORITY ELDERLY HOUSING WILLAMETTE VIEW INCOME PROJECT 7.000% 11/15/2011................ 470,000 522,287 CLACKAMAS COUNTY SCHOOL DISTRICT #1 6.250% 07/01/2002................ 925,000 982,813 6.300% 07/01/2003................ 700,000 744,625 CLACKAMAS COUNTY SCHOOL DISTRICT #115 GLADSTONE 6.150% 06/01/2014................ 1,200,000 1,344,000 DESCHUTES COUNTY ADMINISTRATIVE SCHOOL DISTRICT #1 BEND-LAPINE 5.800% 02/01/2004................ 780,000 819,975 5.900% 02/01/2005................ 980,000 1,033,900 EUGENE ELECTRIC UTILITY SERIES C 5.750% 08/01/2011................ 715,000 779,350 5.750% 08/01/2016................ 1,055,000 1,149,950 LANE COUNTY SCHOOL DISTRICT #19 SPRINGFIELD 6.150% 10/15/2009................ 1,500,000 1,676,250 MEDFORD HOSPITAL FACILITY AUTHORITY REVENUE GROSS-ROGUE VALLEY HEALTH SERVICES 6.800% 12/01/2011................ 1,820,000 1,972,425 MULTNOMAH COUNTY EDUCATIONAL FACILITIES UNIVERSITY OF PORTLAND PROJECT 6.000% 04/01/2014................ 1,375,000 1,510,781
60 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - --------------------- --------------------- -- COLUMBIA MUNICIPAL BOND FUND, INC. -- ------
OREGON PRE-REFUNDED BONDS (CONTINUED) PRINCIPAL AMOUNT VALUE(1) ----------- ------------- OREGON CITY SEWER 6.500% 10/01/2007................ $ 500,000 $ 556,250 OREGON HOUSING, EDUCATIONAL & CULTURAL FACILITIES AUTHORITY REED COLLEGE PROJECT SERIES A 6.350% 07/01/2002................ 320,000 346,800 6.400% 07/01/2003................ 280,000 303,800 PORTLAND SEWER SYSTEM REVENUE SERIES A 6.050% 06/01/2009................ 535,000 590,506 6.200% 06/01/2012................ 4,000,000 4,445,000 UMATILLA COUNTY SCHOOL DISTRICT #8R HERMISTON 6.000% 12/01/2010................ 695,000 766,238 UNION HEALTH DISTRICT 5.750% 02/01/2010................ 1,070,000 1,131,525 ------------- TOTAL OREGON PRE-REFUNDED BONDS (COST $21,492,568)................ 23,525,225 ------------- OREGON OTHER BONDS (2.9%) GRANTS PASS URBAN RENEWAL AGENCY TAX INCREMENT 6.125% 08/01/2012................ 755,000 779,537 HOOD RIVER URBAN RENEWAL AGENCY REVENUE 6.250% 12/15/2011................ 1,250,000 1,365,625 LANE COUNTY SCHOOL DISTRICT #4J EUGENE CERTIFICATES PARTICIPATION 6.900% 10/01/2000................ 500,000 531,250 LEBANON SPECIAL OBLIGATION REVENUE REFUNDING LEASE WATER 5.400% 10/01/2013................ 755,000 773,875 MEDFORD URBAN RENEWAL AGENCY TAX REVENUE 5.875% 09/01/2010................ 500,000 529,375 NEWBERG CERTIFICATES PARTICIPATION 5.900% 12/01/1998................ 365,000 367,639 6.000% 12/01/1999................ 390,000 399,750 6.100% 12/01/2000................ 410,000 426,913 6.200% 12/01/2001................ 410,000 433,575 PRINCIPAL AMOUNT VALUE(1) ----------- ------------- PORTLAND AIRPORT WAY URBAN RENEWAL & REDEVELOPMENT TAX INCREMENT SERIES C 5.900% 06/01/2006................ $ 860,000 $ 919,125 PORTLAND BUILDING REFUNDING SERIES A 4.750% 04/01/2007................ 2,000,000 2,027,500 PORTLAND URBAN RENEWAL & REDEVELOPMENT REFUNDING, DOWNTOWN WATERFRONT SERIES L 6.000% 06/01/2002................ 1,140,000 1,218,375 6.400% 06/01/2008................ 2,085,000 2,243,981 ------------- TOTAL OREGON OTHER BONDS (COST $11,323,155)................ 12,016,520 ------------- OTHER BONDS (7.8%) PUERTO RICO COMMONWEALTH 6.250% 07/01/2008................ 1,000,000 1,145,000 5.000% 07/01/2018................ 1,500,000 1,483,125 PUERTO RICO COMMONWEALTH AQUEDUCT & SEWER AUTHORITY 5.200% 07/01/2008................ 1,000,000 1,063,750 PUERTO RICO COMMONWEALTH AQUEDUCT & SEWER AUTHORITY REVENUE SERIES A 9.000% 07/01/2009................ 6,085,000 7,659,494 PUERTO RICO COMMONWEALTH INFRASTRUCTURE FINANCING AUTHORITY 5.000% 07/01/2013................ 1,750,000 1,776,250 PUERTO RICO COMMONWEALTH PUBLIC BUILDINGS AUTHORITY REVENUE SERIES B 5.000% 07/01/2013................ 3,130,000 3,184,775 5.000% 07/01/2027................ 1,500,000 1,473,750 PUERTO RICO COMMONWEALTH PUBLIC IMPROVEMENTS 6.250% 07/01/2009................ 3,000,000 3,457,500 6.250% 07/01/2013................ 1,000,000 1,156,250 PUERTO RICO ELECTRIC POWER AUTHORITY 5.000% 07/01/2010................ 2,425,000 2,497,750 PUERTO RICO HOUSING BANK & FINANCE AGENCY SINGLE FAMILY MORTGAGE REVENUE FHA HOMEOWNERSHIP 5TH PORTFOLIO 7.500% 12/01/2015................ 610,000 649,650
61 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - --------------------- --------------------- -- COLUMBIA MUNICIPAL BOND FUND, INC. -- ------
OTHER BONDS (CONTINUED) PRINCIPAL AMOUNT VALUE(1) ----------- ------------- PUERTO RICO HOUSING FINANCE CORP. MULTI FAMILY MORTGAGE REVENUE PORTFOLIO A-1 7.500% 04/01/2022................ $1,425,000 $ 1,492,688 PUERTO RICO HOUSING FINANCE CORP. SINGLE FAMILY MORTGAGE REVENUE PORTFOLIO 1 SERIES B 7.500% 10/15/2012................ 1,040,000 1,097,200 PUERTO RICO HOUSING FINANCE CORP. SINGLE FAMILY MORTGAGE REVENUE PORTFOLIO 1 SERIES C 6.750% 10/15/2013................ 710,000 755,262 PUERTO RICO INDUSTRIAL, MEDICAL & ENVIRONMENTAL POLLUTION CONTROL FACILITIES FINANCING AUTHORITY REVENUE FHA INSURED MORTGAGE DR. PILA HOSPITAL PROJECT -A 7.700% 08/01/2008................ 1,895,000 1,937,031 VIRGIN ISLANDS PUBLIC FINANCE AUTHORITY REVENUE UNREFUNDED BALANCE SERIES A 7.300% 10/01/2018................ 1,185,000 1,493,100 ------------- TOTAL OTHER BONDS (COST $30,738,739)................ 32,322,575 ------------- TOTAL INVESTMENTS, EXCLUDING TEMPORARY CASH INVESTMENT (COST $391,031,923)............... 411,722,617 ------------- PRINCIPAL AMOUNT VALUE(1) ----------- ------------- TAX-EXEMPT MONEY MARKET INVESTMENT (0.9%) SEI TAX EXEMPT TRUST (COST $3,743,725)..................... $3,743,725 $ 3,743,725 ------------- TOTAL INVESTMENTS (99.5%) (COST $394,775,648)................... 415,466,342 RECEIVABLES LESS LIABILITIES (0.5%).... 2,116,146 ------------- NET ASSETS (100.0%).................... $ 417,582,488 ------------- -------------
(1) See Note 1 of Notes to Financial Statements. The accompanying notes are an integral part of the financial statements. 62 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ------------------------ ------------------------ -- COLUMBIA HIGH YIELD FUND, INC. -- ------
JUNE 30, 1998 PRINCIPAL (UNAUDITED) AMOUNT VALUE(1) ----------- ------------ CORPORATE BONDS (93.8%) INDUSTRIAL (79.8%) BASIC INDUSTRY & MANUFACTURING (16.6%) MANUFACTURING (15.0%) AVIATION SALES CO. (144A) SENIOR SUBORDINATED NOTES 8.125% 02/15/2008.............. $1,000,000 $ 975,000 FEDERAL MOGUL CORP. NOTES 7.750% 07/01/2006.............. 500,000 499,375 HAYES WHEELS INTERNATIONAL, INC. SERIES B SENIOR SUBORDINATED NOTES 9.125% 07/15/2007.............. 1,000,000 1,045,000 SILGAN HOLDINGS, INC. SENIOR SUBORDINATED DEBENTURES 9.000% 06/01/2009.............. 1,000,000 1,035,000 TITAN WHEEL INTERNATIONAL, INC. SENIOR SUBORDINATED NOTES 8.750% 04/01/2007.............. 900,000 927,000 TRACOR, INC. SENIOR SUBORDINATED NOTES 8.500% 03/01/2007.............. 1,000,000 1,082,500 UNISYS CORP. SENIOR NOTES 7.875% 04/01/2008.............. 1,000,000 1,020,000 WYMAN-GORDON CO. SENIOR NOTES 8.000% 12/15/2007.............. 990,000 1,004,850 ------------ 7,588,725 ------------ METALS/MINING (1.6%) RYERSON TULL, INC. NOTES 8.500% 07/15/2001.............. 750,000 779,063 ------------ TOTAL BASIC INDUSTRY & MANUFACTURING..................... 8,367,788 ------------ BUSINESS & CONSUMER SERVICES (6.1%) IRON MOUNTAIN, INC. SENIOR SUBORDINATED NOTES 10.125% 10/01/2006............... 750,000 813,750 PIERCE LEAHY CORP. SENIOR SUBORDINATED NOTES 11.125% 07/15/2006............... 900,000 1,008,000 PRINCIPAL AMOUNT VALUE(1) ----------- ------------ RENTAL SERVICE CORP. (144A) SENIOR SUBORDINATED NOTES 9.000% 05/15/2008................ $ 750,000 $ 750,000 UNITED STATIONERS SUPPLY CO. (144A) SENIOR SUBORDINATED NOTES 8.375% 04/15/2008................ 485,000 486,213 ------------ TOTAL BUSINESS & CONSUMER SERVICES.......................... 3,057,963 ------------ CONSUMER CYCLICAL (11.1%) HOTELS & GAMING (3.7%) HMH PROPERTIES, INC. SERIES B SENIOR SECURED NOTES 9.500% 05/15/2005.............. 600,000 652,500 RIO HOTEL & CASINO, INC. SENIOR SUBORDINATED NOTES 9.500% 04/15/2007.............. 450,000 477,000 STATION CASINOS, INC. SENIOR SUBORDINATED NOTES 9.625% 06/01/2003.............. 740,000 765,900 ------------ 1,895,400 ------------ HOUSING RELATED (2.0%) WEBB (DEL E.) CORP. SENIOR SUBORDINATED DEBENTURES 9.000% 02/15/2006.............. 1,000,000 995,000 ------------ RETAIL (5.4%) MAXIM GROUP, INC. SERIES B SENIOR SUBORDINATED NOTES 9.250% 10/15/2007.............. 900,000 924,750 SPECIALTY RETAILERS, INC. SERIES B SENIOR NOTES 8.500% 07/15/2005.............. 1,000,000 1,025,000 ZALE CORP. SERIES B SENIOR NOTES 8.500% 10/01/2007.............. 750,000 772,500 ------------ 2,722,250 ------------ TOTAL CONSUMER CYCLICAL............ 5,612,650 ------------ CONSUMER STAPLES (11.9%) FOOD/BEVERAGE/TOBACCO (1.9%) AURORA FOODS, INC. SERIES E (144A) SENIOR SUBORDINATED NOTES 8.750% 07/01/2008.............. 500,000 506,875
63 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ------------------------ ------------------------ -- COLUMBIA HIGH YIELD FUND, INC. -- ------
CORPORATE BONDS (CONTINUED) PRINCIPAL AMOUNT VALUE(1) ----------- ------------ PURINA MILLS, INC. (144A) SENIOR SUBORDINATED NOTES 9.000% 03/15/2010.............. $ 450,000 $ 462,375 ------------ 969,250 ------------ HEALTH CARE (8.0%) ABBEY HEALTHCARE GROUP, INC. SENIOR SUBORDINATED NOTES 9.500% 11/01/2002.............. 500,000 495,000 CONMED CORP. SENIOR SUBORDINATED NOTES 9.000% 03/15/2008.............. 750,000 744,375 HEALTHSOUTH CORP. SENIOR SUBORDINATED NOTES 9.500% 04/01/2001.............. 500,000 518,750 QUORUM HEALTH GROUP, INC. SENIOR SUBORDINATED NOTES 8.750% 11/01/2005.............. 1,000,000 1,035,000 TENET HEALTHCARE CORP. (144A) SENIOR SUBORDINATED NOTES 8.125% 12/01/2008.............. 1,250,000 1,253,125 ------------ 4,046,250 ------------ OTHER (2.0%) WESTPOINT STEVENS, INC. (144A) SENIOR NOTES 7.875% 06/15/2005.............. 1,000,000 1,007,500 ------------ TOTAL CONSUMER STAPLES............. 6,023,000 ------------ ENERGY (6.8%) GULF CANADA RESOURCES LTD. SENIOR SUBORDINATED DEBENTURES 9.625% 07/01/2005............... 750,000 817,500 KELLEY OIL & GAS CORP. SERIES B SENIOR SUBORDINATED NOTES 10.375% 10/15/2006............... 600,000 597,000 NUEVO ENERGY CO. SENIOR SUBORDINATED NOTES 9.500% 04/15/2006............... 900,000 940,500 SANTA FE ENERGY RESOURCE, INC. SENIOR SUBORDINATED DEBENTURES 11.000% 05/15/2004............... 1,000,000 1,075,000 ------------ TOTAL ENERGY....................... 3,430,000 ------------ PRINCIPAL AMOUNT VALUE(1) ----------- ------------ ENTERTAINMENT & MEDIA (24.6%) ADELPHIA COMMUNICATIONS CORP. SERIES B SENIOR NOTES 10.500% 07/15/2004............... $1,000,000 $ 1,092,500 CINEMARK USA, INC. SERIES B SENIOR SUBORDINATED NOTES 9.625% 08/01/2008................ 1,000,000 1,030,000 COMCAST CORP. SENIOR SUBORDINATED DEBENTURES 9.500% 01/15/2008................ 1,000,000 1,067,840 HERITAGE MEDIA CORP. SENIOR SUBORDINATED NOTES 8.750% 02/15/2006................ 750,000 798,750 HOLLINGER INTERNATIONAL PUBLISHING, INC. SENIOR NOTES 8.625% 03/15/2005................ 1,000,000 1,045,000 JACOR COMMUNICATIONS CO. SERIES B SENIOR SUBORDINATED NOTES 8.750% 06/15/2007................ 1,000,000 1,040,000 JONES INTERCABLE, INC. SENIOR NOTES 8.875% 04/01/2007................ 700,000 749,000 7.625% 04/15/2008................ 300,000 304,500 LAMAR ADVERTISING CO. SENIOR SUBORDINATED NOTES 9.625% 12/01/2006................ 1,000,000 1,072,500 LENFEST COMMUNICATIONS, INC. SENIOR NOTES 8.375% 11/01/2005................ 750,000 796,875 OUTDOOR SYSTEMS, INC. SENIOR SUBORDINATED NOTES 9.375% 10/15/2006................ 985,000 1,046,562 SFX BROADCASTING, INC. SERIES B SENIOR SUBORDINATED NOTES 10.750% 05/15/2006............... 750,000 826,875 SINCLAIR BROADCAST GROUP, INC. SENIOR SUBORDINATED NOTES 8.750% 12/15/2007................ 750,000 768,750 YOUNG BROADCASTING, INC. SERIES B SENIOR SUBORDINATED NOTES 10.125% 02/15/2005............... 750,000 813,750 ------------ TOTAL ENTERTAINMENT & MEDIA........ 12,452,902 ------------
64 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ------------------------ ------------------------ -- COLUMBIA HIGH YIELD FUND, INC. -- ------
CORPORATE BONDS (CONTINUED) PRINCIPAL AMOUNT VALUE(1) ----------- ------------ TRANSPORTATION (2.7%) OTHER (2.7%) ALLIED HOLDING, INC. SERIES B SENIOR NOTES 8.625% 10/01/2007.............. $ 500,000 $ 502,500 TEEKAY SHIPPING CORP. GTD. 1ST PFD. SHIP. MTG. NOTES 8.320% 02/01/2008.............. 850,000 879,750 ------------ TOTAL TRANSPORTATION............... 1,382,250 ------------ TOTAL INDUSTRIAL................... 40,326,553 ------------ UTILITIES (12.3%) ELECTRIC (6.4%) AES CORP. SENIOR SUBORDINATED NOTES 10.250% 07/15/2006............... 800,000 868,000 AES CORP. SENIOR SUBORDINATED EXCHANGE NOTES 8.375% 08/15/2007............... 500,000 505,000 CALENERGY, INC. SENIOR SECURED NOTES 9.875% 06/30/2003............... 850,000 909,508 CMS ENERGY CORP. (144A) SENIOR UNSECURED NOTES 7.000% 01/15/2005............... 1,000,000 976,260 ------------ 3,258,768 ------------ TELECOMMUNICATIONS (5.9%) FLAG LTD. (144A) SENIOR NOTES 8.250% 01/30/2008............... 750,000 755,625 LEVEL 3 COMMUNICATIONS, INC. (144A) SENIOR NOTES 9.125% 05/01/2008............... 740,000 719,650 NEXTLINK COMMUNICATIONS, INC. (144A) SENIOR DISCOUNT NOTES 0.000% 04/15/2008............... 1,000,000 615,000 PAGING NETWORK, INC. SENIOR SUBORDINATED NOTES 10.000% 10/15/2008............... 850,000 877,625 ------------ 2,967,900 ------------ TOTAL UTILITIES.................... 6,226,668 ------------ PRINCIPAL AMOUNT VALUE(1) ----------- ------------ YANKEE (1.7%) SOVEREIGN-OTHER (1.7%) MEXICO-UNITED MEXICAN STATES GLOBAL BONDS 11.375% 09/15/2016.......... $ 750,000 $ 838,125 ------------ TOTAL CORPORATE BONDS (COST $46,495,770)................ 47,391,346 ------------ REPURCHASE AGREEMENTS (5.5%) GOLDMAN SACHS CORP. 5.830% DATED 06/30/1998, DUE 07/01/1998 IN THE AMOUNT OF $2,658,184. COLLATERALIZED BY U.S. TREASURY BONDS 6.250% DUE 08/15/2023............... 2,657,759 2,657,759 J.P. MORGAN SECURITIES, INC. 5.830% DATED 06/30/1998, DUE 07/01/1998 IN THE AMOUNT OF $100,016. COLLATERALIZED BY U.S. TREASURY NOTES 5.625% TO 6.750% DUE 04/30/2000 TO 12/31/2002........ 100,000 100,000 ------------ TOTAL REPURCHASE AGREEMENTS (COST $2,757,759)................. 2,757,759 ------------ TOTAL INVESTMENTS (99.3%) (COST $49,253,529).................... 50,149,105 RECEIVABLES LESS LIABILITIES (0.7%).... 364,536 ------------ NET ASSETS (100.0%).................... $ 50,513,641 ------------ ------------
(1) See Note 1 of Notes to Financial Statements. The accompanying notes are an integral part of the financial statements. 65 STATEMENTS OF ASSETS AND LIABILITIES -----------------------------------------------------------------
COLUMBIA COLUMBIA COLUMBIA COLUMBIA June 30, 1998 COMMON STOCK GROWTH INTERNATIONAL STOCK SPECIAL (Unaudited) FUND, INC. FUND, INC. FUND, INC. FUND, INC. ------------- --------------- ------------------- --------------- ASSETS: Investments at identified cost.................. $703,693,351 $ 1,141,868,701 $109,916,996 $ 879,792,156 - -------------------------------------------------- ------------- --------------- ------------------- --------------- Investments at value (Notes 1 and 2)............ $892,851,539 $ 1,644,039,384 $146,257,439 $ 1,015,087,183 Temporary cash investments, at cost (Note 1).... 36,203,710 35,174,019 6,607,564 96,534,452 Cash............................................ 42,051 Cash denominated in foreign currencies (cost $116,581) (Note 1)............................. 113,622 Receivable for: Interest...................................... 114,434 110,978 29,175 648,205 Dividends..................................... 583,556 836,784 275,001 399,100 Investments sold.............................. 5,567,959 21,160,876 Capital stock sold............................ 469,370 878,300 129,583 1,685,752 ------------- --------------- ------------------- --------------- Total assets.................................... 935,790,568 1,702,200,341 153,454,435 1,114,354,692 ------------- --------------- ------------------- --------------- LIABILITIES: Payable for: Capital stock redeemed........................ 618,482 584,385 160,082 1,582,362 Dividends and distributions................... 13,096 Investments purchased......................... 13,421,332 10,364,027 14,187,779 Investment management fee (Note 4)............ 440,125 732,391 124,895 767,973 Accrued expenses.............................. 38,108 161,597 75,417 293,265 ------------- --------------- ------------------- --------------- Total liabilities............................... 14,531,143 11,842,400 360,394 16,831,379 ------------- --------------- ------------------- --------------- NET ASSETS APPLICABLE TO OUTSTANDING SHARES....... $921,259,425 $ 1,690,357,941 $153,094,041 $ 1,097,523,313 ------------- --------------- ------------------- --------------- ------------- --------------- ------------------- --------------- Net assets consist of: Undistributed net investment income............. $ 1,855,343 $ 4,201,503 $ 316,618 $ 712,433 Unrealized appreciation (depreciation) on: Investments................................... 189,158,188 502,170,683 36,340,443 135,295,027 Translation of assets and liabilities in foreign currencies........................... (3,403) Undistributed net realized gain (loss) from: Investments................................... 74,071,710 93,741,519 (2,695,862) 100,474,966 Foreign currency transactions................. (765,989) Capital shares (Note 3)......................... 404,960 498,720 Capital paid in (Note 3)........................ 656,174,184 1,089,839,276 119,902,234 860,542,167 ------------- --------------- ------------------- --------------- $921,259,425 $ 1,690,357,941 $153,094,041 $ 1,097,523,313 ------------- --------------- ------------------- --------------- ------------- --------------- ------------------- --------------- SHARES OF CAPITAL STOCK OUTSTANDING (NOTE 3)...... 36,284,129 40,496,046 9,882,610 49,871,957 ------------- --------------- ------------------- --------------- ------------- --------------- ------------------- --------------- NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE (1).................................. $ 25.39 $ 41.74 $ 15.49 $ 22.01 ------------- --------------- ------------------- --------------- ------------- --------------- ------------------- ---------------
(1) The net asset value per share is computed by dividing net assets applicable to outstanding shares by shares of capital stock outstanding. The accompanying notes are an integral part of the financial statements. 66 STATEMENTS OF ASSETS AND LIABILITIES -----------------------------------------------------------------
COLUMBIA COLUMBIA REAL ESTATE COLUMBIA COLUMBIA June 30, 1998 SMALL CAP EQUITY BALANCED DAILY INCOME (Unaudited) FUND, INC. FUND, INC. FUND, INC. COMPANY ------------- ------------- ------------- --------------- ASSETS: Investments at identified cost.................. $ 110,018,637 $143,493,863 $ 787,729,778 $ 1,033,953,887 - -------------------------------------------------- ------------- ------------- ------------- --------------- Investments at value (Notes 1 and 2)............ $ 125,723,561 $160,179,340 $ 919,367,988 $ 1,033,953,887 Temporary cash investments, at cost (Note 1).... 13,839,162 9,955,170 22,892,921 Cash............................................ 300,000 Receivable for: Interest...................................... 61,144 40,248 5,527,848 10,579 Dividends..................................... 14,245 898,934 314,546 Investments sold.............................. 2,822,041 4,195,141 Capital stock sold............................ 367,683 515,513 290,590 1,500,184 ------------- ------------- ------------- --------------- Total assets.................................... 142,827,836 171,589,205 952,589,034 1,035,764,650 ------------- ------------- ------------- --------------- LIABILITIES: Payable for: Capital stock redeemed........................ 341,588 174,043 5,200,606 8,679,341 Dividends and distributions................... 197,986 107,687 Investments purchased......................... 3,600,069 4,936,432 Investment management fee (Note 4)............ 109,449 102,363 380,890 402,836 Accrued expenses.............................. 26,893 2,776 133,032 307,221 ------------- ------------- ------------- --------------- Total liabilities............................... 4,077,999 477,168 10,758,647 9,389,398 ------------- ------------- ------------- --------------- NET ASSETS APPLICABLE TO OUTSTANDING SHARES....... $ 138,749,837 $171,112,037 $ 941,830,387 $ 1,026,375,252 ------------- ------------- ------------- --------------- ------------- ------------- ------------- --------------- Net assets consist of: Undistributed net investment income (loss)...... $ (418,162) $ 24,098 $ 1,171,463 Unrealized appreciation on investments.......... 15,704,924 16,685,477 131,638,210 Undistributed net realized gain (loss) from investments.................................... 3,225,275 (51,620) 46,234,624 Capital shares (Note 3)......................... $ 1,026,375 Capital paid in (Note 3)........................ 120,237,800 154,454,082 762,786,090 1,025,348,877 ------------- ------------- ------------- --------------- $ 138,749,837 $171,112,037 $ 941,830,387 $ 1,026,375,252 ------------- ------------- ------------- --------------- ------------- ------------- ------------- --------------- SHARES OF CAPITAL STOCK OUTSTANDING (NOTE 3)...... 7,654,930 9,691,686 39,988,071 1,026,375,252 ------------- ------------- ------------- --------------- ------------- ------------- ------------- --------------- NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE (1)........................................ $ 18.13 $ 17.66 $ 23.55 $ 1.00 ------------- ------------- ------------- --------------- ------------- ------------- ------------- ---------------
(1) The net asset value per share is computed by dividing net assets applicable to outstanding shares by shares of capital stock outstanding. The accompanying notes are an integral part of the financial statements. 67 STATEMENTS OF ASSETS AND LIABILITIES -----------------------------------------------------------------
COLUMBIA U.S. COLUMBIA FIXED GOVERNMENT INCOME COLUMBIA COLUMBIA June 30, 1998 SECURITIES SECURITIES MUNICIPAL BOND HIGH YIELD (Unaudited) FUND, INC. FUND, INC. FUND, INC. FUND, INC. ------------- --------------- ------------------- --------------- ASSETS: Investments at identified cost.................. $ 38,607,933 $ 391,858,220 $391,031,923 $ 46,495,770 - -------------------------------------------------- ------------- --------------- ------------------- --------------- Investments at value (Notes 1 and 2)............ $ 38,667,664 $ 401,433,704 $411,722,617 $ 47,391,346 Temporary cash investments, at cost (Note 1).... 563,270 22,473,724 3,743,725 2,757,759 Receivable for: Interest...................................... 511,150 4,784,891 5,150,346 1,065,648 Investments sold.............................. 627,859 4,799,760 Capital stock sold............................ 582 467,862 3,886 10,995 ------------- --------------- ------------------- --------------- Total assets.................................... 39,742,666 429,788,040 425,420,334 51,225,748 ------------- --------------- ------------------- --------------- LIABILITIES: Payable for: Capital stock redeemed........................ 580,092 5,907,520 155,501 134,440 Dividends and distributions................... 9,929 446,816 336,855 27,996 Investments purchased......................... 11,663,175 7,150,498 500,000 Investment management fee (Note 4)............ 16,185 170,402 172,393 24,728 Accrued expenses.............................. 13,524 63,885 22,599 24,943 ------------- --------------- ------------------- --------------- Total liabilities............................... 619,730 18,251,798 7,837,846 712,107 ------------- --------------- ------------------- --------------- NET ASSETS APPLICABLE TO OUTSTANDING SHARES....... $ 39,122,936 $ 411,536,242 $417,582,488 $ 50,513,641 ------------- --------------- ------------------- --------------- ------------- --------------- ------------------- --------------- Net assets consist of: Unrealized appreciation on investments........ $ 59,731 $ 9,575,484 $ 20,690,694 $ 895,576 Undistributed net realized gain (loss) from investments.................................. (137,691) 2,069,340 3,008,009 478,663 Capital shares (Note 3)....................... 47,075 305,253 335,559 Capital paid in (Note 3)...................... 39,153,821 399,586,165 393,548,226 49,139,402 ------------- --------------- ------------------- --------------- $ 39,122,936 $ 411,536,242 $417,582,488 $ 50,513,641 ------------- --------------- ------------------- --------------- ------------- --------------- ------------------- --------------- SHARES OF CAPITAL STOCK OUTSTANDING (NOTE 3)...... 4,707,459 30,525,323 33,555,914 5,002,709 ------------- --------------- ------------------- --------------- ------------- --------------- ------------------- --------------- NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE (1)........................................ $ 8.31 $ 13.48 $ 12.44 $ 10.10 ------------- --------------- ------------------- --------------- ------------- --------------- ------------------- ---------------
(1) The net asset value per share is computed by dividing net assets applicable to outstanding shares by shares of capital stock outstanding. The accompanying notes are an integral part of the financial statements. 68 STATEMENTS OF OPERATIONS -----------------------------------------------------------------
COLUMBIA COLUMBIA COLUMBIA COLUMBIA Six Months Ended June 30, 1998 COMMON STOCK GROWTH INTERNATIONAL STOCK SPECIAL (Unaudited) FUND, INC. FUND, INC. FUND, INC. FUND, INC. ------------- ------------- ------------------- ------------- INVESTMENT INCOME: Income: Interest................................. $ 1,269,993 $ 573,425 $ 271,350 $ 3,419,259 Dividends................................ 5,264,154 6,639,133 1,331,313 2,835,083 Foreign taxes withheld (net of reclaims)............................... (163,471) ------------- ------------- ------------------- ------------- Total income........................... 6,534,147 7,212,558 1,439,192 6,254,342 ------------- ------------- ------------------- ------------- Expenses: Investment management fees (Note 4)...... 2,612,332 4,205,452 745,167 4,985,736 Shareholder servicing costs (Note 4)..... 533,242 589,894 210,343 664,367 Reports to shareholders.................. 55,477 100,012 40,111 134,365 Accounting expense....................... 17,861 15,322 36,533 26,012 Financial information and subscriptions........................... 4,677 7,211 5,950 10,198 Custodian fees........................... 13,659 20,806 37,809 23,650 Bank transaction and checking fees....... 12,683 14,340 16,176 6,702 Registration fees........................ 26,582 33,373 11,308 19,828 Legal, insurance and auditing fees....... 16,040 17,704 15,305 24,916 Other.................................... 3,624 6,520 3,872 6,208 ------------- ------------- ------------------- ------------- Total expenses......................... 3,296,177 5,010,634 1,122,574 5,901,982 ------------- ------------- ------------------- ------------- Net investment income (Note 1)............. 3,237,970 2,201,924 316,618 352,360 ------------- ------------- ------------------- ------------- REALIZED GAIN (LOSS) AND UNREALIZED APPRECIATION (DEPRECIATION) FROM INVESTMENT AND FOREIGN CURRENCY TRANSACTIONS: Net realized gain (loss) from: Investments (Note 2) (1)................. 73,273,622 92,027,391 (2,665,575) 101,287,000 Foreign currency transactions (Note 1)... (636,316) ------------- ------------- ------------------- ------------- Net realized gain (loss)............... 73,273,622 92,027,391 (3,301,891) 101,287,000 ------------- ------------- ------------------- ------------- Net unrealized appreciation (depreciation) on: Investments (Note 1)..................... 51,289,077 198,902,661 21,433,318 (2,904,678) Translation of assets and liabilities in foreign currencies (Note 1)............. (127,849) ------------- ------------- ------------------- ------------- Net unrealized appreciation (depreciation) during the period...... 51,289,077 198,902,661 21,305,469 (2,904,678) ------------- ------------- ------------------- ------------- Net gain on investment and foreign currency transactions (Note 1)..................... 124,562,699 290,930,052 18,003,578 98,382,322 ------------- ------------- ------------------- ------------- Net increase in net assets resulting from operations................................ $127,800,669 $ 293,131,976 $18,320,196 $ 98,734,682 ------------- ------------- ------------------- ------------- ------------- ------------- ------------------- -------------
(1) The net realized gain for CSF includes $1,283,032 loss from affiliated issuers. (Note 1) The accompanying notes are an integral part of the financial statements. 69 STATEMENTS OF OPERATIONS -----------------------------------------------------------------
COLUMBIA COLUMBIA COLUMBIA Six Months Ended June 30, 1998 COLUMBIA SMALL REAL ESTATE EQUITY BALANCED DAILY INCOME (Unaudited) CAP FUND, INC. FUND, INC. FUND, INC. COMPANY -------------- ------------------ ------------- ------------ INVESTMENT INCOME: Income: Interest...................................... $ 247,047 $ 305,258 $ 14,954,685 $29,554,870 Dividends..................................... 90,716 3,590,126 2,931,553 -------------- ------------------ ------------- ------------ Total income................................ 337,763 3,895,384 17,886,238 29,554,870 -------------- ------------------ ------------- ------------ Expenses: Investment management fees (Note 4)........... 598,044 609,353 2,201,334 2,457,758 Shareholder servicing costs (Note 4).......... 98,854 108,152 497,599 476,318 Reports to shareholders....................... 15,948 17,341 65,457 134,595 Accounting expense............................ 13,384 12,952 18,936 31,820 Financial information and subscriptions....... 1,093 1,331 7,996 8,412 Custodian fees................................ 1,678 2,181 14,008 27,171 Bank transaction and checking fees............ 7,029 4,707 13,952 115,265 Registration fees............................. 12,539 18,789 29,265 35,390 Legal, insurance and auditing fees............ 6,780 7,576 17,343 30,569 Other......................................... 576 708 4,028 8,595 -------------- ------------------ ------------- ------------ Total expenses.............................. 755,925 783,090 2,869,918 3,325,893 -------------- ------------------ ------------- ------------ Net investment income (loss) (Note 1)........... (418,162) 3,112,294 15,016,320 26,228,977 -------------- ------------------ ------------- ------------ REALIZED GAIN (LOSS) AND UNREALIZED APPRECIATION (DEPRECIATION) FROM INVESTMENT TRANSACTIONS: Net realized gain (loss) from investments (Note 2)............................................. 3,272,493 (49,757) 45,331,834 Net unrealized appreciation (depreciation) on investments during the period (Note 1)......... 6,320,565 (10,431,337) 37,317,852 -------------- ------------------ ------------- Net gain (loss) on investments (Note 1)......... 9,593,058 (10,481,094) 82,649,686 -------------- ------------------ ------------- ------------ Net increase (decrease) in net assets resulting from operations................................ $ 9,174,896 $(7,368,800) $ 97,666,006 $26,228,977 -------------- ------------------ ------------- ------------ -------------- ------------------ ------------- ------------
The accompanying notes are an integral part of the financial statements. 70 STATEMENTS OF OPERATIONS -----------------------------------------------------------------
COLUMBIA U.S. COLUMBIA FIXED COLUMBIA COLUMBIA Six Months Ended June 30, 1998 GOVERNMENT SECURITIES INCOME SECURITIES MUNICIPAL BOND HIGH YIELD (Unaudited) FUND, INC. FUND, INC. FUND, INC. FUND, INC. --------------------- ----------------- -------------- ----------- INVESTMENT INCOME: Income: Interest................................. $1,043,886 $13,774,192 $10,753,706 $2,005,537 ----------- ----------------- -------------- ----------- Total income........................... 1,043,886 13,774,192 10,753,706 2,005,537 ----------- ----------------- -------------- ----------- Expenses: Investment management fees (Note 4)...... 93,480 990,783 1,027,819 139,977 Shareholder servicing costs (Note 4)..... 30,560 162,653 63,566 29,685 Reports to shareholders.................. 5,399 32,428 9,732 8,629 Accounting expense....................... 15,512 16,551 14,838 21,220 Financial information and subscriptions........................... 531 6,034 15,814 2,140 Custodian fees........................... 624 6,320 6,078 1,065 Bank transaction and checking fees....... 598 8,331 2,774 2,446 Registration fees........................ 5,882 15,738 7,903 14,674 Legal, insurance and auditing fees....... 9,762 16,443 13,018 12,327 Other.................................... 213 1,306 1,519 346 ----------- ----------------- -------------- ----------- Total expenses......................... 162,561 1,256,587 1,163,061 232,509 ----------- ----------------- -------------- ----------- Net investment income (Note 1)............. 881,325 12,517,605 9,590,645 1,773,028 ----------- ----------------- -------------- ----------- REALIZED GAIN (LOSS) AND UNREALIZED APPRECIATION (DEPRECIATION) FROM INVESTMENT AND FOREIGN CURRENCY TRANSACTIONS: Net realized gain (loss) from investments (Note 2).................................. 111,587 2,061,260 2,706,240 447,950 Net unrealized depreciation on investments during the period (Note 1)................ (31,219) (24,410) (3,372,676) (235,088) ----------- ----------------- -------------- ----------- Net gain (loss) on investments (Note 1).... 80,368 2,036,850 (666,436) 212,862 ----------- ----------------- -------------- ----------- Net increase in net assets resulting from operations................................ $ 961,693 $14,554,455 $ 8,924,209 $1,985,890 ----------- ----------------- -------------- ----------- ----------- ----------------- -------------- -----------
The accompanying notes are an integral part of the financial statements. 71 STATEMENTS OF CHANGES IN NET ASSETS -----------------------------------------------------------------
Six Months Ended June 30, 1998 COLUMBIA COLUMBIA COLUMBIA (Unaudited) and COMMON STOCK GROWTH INTERNATIONAL STOCK Year Ended December 31, 1997 FUND, INC. FUND, INC. FUND, INC. --------------------------- ------------------------------- --------------------------- 1998 1997 1998 1997 1998 1997 ------------ ------------ -------------- -------------- ------------ ------------ INCREASE IN NET ASSETS: Operations: Net investment income........ $ 3,237,970 $ 9,354,883 $ 2,201,924 $ 6,692,676 $ 316,618 $ 276,986 Net realized gain (loss) from: Investments (Note 2)....... 73,273,622 61,630,849 92,027,391 150,238,079 (2,665,575) 17,347,526 Foreign currency transactions (Note 1)..... (636,316) (286,335) Change in net unrealized appreciation (depreciation) on: Investments................ 51,289,077 76,981,002 198,902,661 122,000,869 21,433,318 (1,735,993) Translation of assets and liabilities in foreign currencies (Note 1)....... (127,849) (67,221) ------------ ------------ -------------- -------------- ------------ ------------ Net increase in net assets resulting from operations... 127,800,669 147,966,734 293,131,976 278,931,624 18,320,196 15,534,963 Distributions to shareholders: From net investment income... (2,919,990) (8,468,207) (5,838,423) From net realized gain from investment transactions..... (61,141,619) (148,364,649) (16,691,558) Capital share transactions, net (Note 3)...................... 12,472,927 168,789,109 72,308,276 136,089,618 (11,506,690) 21,927,539 ------------ ------------ -------------- -------------- ------------ ------------ Net increase in net assets... 137,353,606 247,146,017 365,440,252 260,818,170 6,813,506 20,770,944 NET ASSETS: Beginning of period............ 783,905,819 536,759,802 1,324,917,689 1,064,099,519 146,280,535 125,509,591 ------------ ------------ -------------- -------------- ------------ ------------ End of period (1).............. $921,259,425 $783,905,819 $1,690,357,941 $1,324,917,689 $153,094,041 $146,280,535 ------------ ------------ -------------- -------------- ------------ ------------ ------------ ------------ -------------- -------------- ------------ ------------ - --------------------------------- ------------ ------------ -------------- -------------- ------------ ------------ (1) Includes undistributed net investment income of: $ 1,855,343 $ 1,537,363 $ 4,201,503 $ 1,999,579 $ 316,618 $ --
The accompanying notes are an integral part of the financial statements. 72 STATEMENTS OF CHANGES IN NET ASSETS -----------------------------------------------------------------
Six Months Ended June 30, 1998 COLUMBIA COLUMBIA COLUMBIA (Unaudited) and SPECIAL SMALL CAP REAL ESTATE EQUITY Year Ended December 31, 1997 FUND, INC. FUND, INC. FUND, INC. --------------------------- ------------------------------- --------------------------- 1998 1997 1998 1997 1998 1997 ------------ ------------ -------------- -------------- ------------ ------------ INCREASE (DECREASE) IN NET ASSETS: Operations: Net investment income (loss)...................... $ 352,360 $ 531,773 $ (418,162) $ (443,585) $ 3,112,294 $ 5,578,378 Net realized gain (loss) from investments (Note 2)........ 101,287,000 122,678,842 3,272,493 4,931,098 (49,757) 3,597,873 Change in net unrealized appreciation (depreciation) on investments.............. (2,904,678) 49,916,627 6,320,565 7,895,606 (10,431,337) 16,211,982 ------------ ------------ -------------- -------------- ------------ ------------ Net increase (decrease) in net assets resulting from operations.................. 98,734,682 173,127,242 9,174,896 12,383,119 (7,368,800) 25,388,233 Distributions to shareholders: From net investment income... (3,088,196)** (4,230,674) From net realized gain from investment transactions..... (122,678,842) (4,258,935) (3,597,873) In excess of net realized gain from investment transactions................ (154,157)* (243,742)* From tax return of capital... (1,252,467) Capital share transactions, net (Note 3)...................... (250,929,166) (385,860,660) 33,143,632 67,245,755 30,014,593 67,417,742 ------------ ------------ -------------- -------------- ------------ ------------ Net increase (decrease) in net assets.................. (152,194,484) (335,566,417) 42,318,528 75,369,939 19,557,597 83,481,219 NET ASSETS: Beginning of period............ 1,249,717,797 1,585,284,214 96,431,309 21,061,370 151,554,440 68,073,221 ------------ ------------ -------------- -------------- ------------ ------------ End of period (1).............. $1,097,523,313 $1,249,717,797 $ 138,749,837 $ 96,431,309 $171,112,037 $151,554,440 ------------ ------------ -------------- -------------- ------------ ------------ ------------ ------------ -------------- -------------- ------------ ------------ - --------------------------------- ------------ ------------ -------------- -------------- ------------ ------------ (1) Includes undistributed net investment income (loss) of: $ 712,433 $ 360,073 $ (418,162) $ -- $ 24,098 $ --
* On a tax basis, there was no return of capital. ** On a tax basis, a portion of the distributions to shareholders from net investment income may consist of return of capital. The Fund will mail to its shareholders annually a summary of the federal income tax status of the Fund's distributions for the preceeding year. The accompanying notes are an integral part of the financial statements. 73 STATEMENTS OF CHANGES IN NET ASSETS -----------------------------------------------------------------
Six Months Ended June 30, 1998 COLUMBIA COLUMBIA COLUMBIA (Unaudited) and BALANCED DAILY INCOME U.S. GOVERNMENT Year Ended December 31, 1997 FUND, INC. COMPANY SECURITIES FUND, INC. -------------------------- ------------------------------ ------------------------ 1998 1997 1998 1997 1998 1997 ------------ ------------ -------------- -------------- ----------- ----------- INCREASE (DECREASE) IN NET ASSETS: Operations: Net investment income............. $ 15,016,320 $ 29,022,353 $ 26,228,977 $ 44,915,266 $ 881,325 $ 1,946,052 Net realized gain from investments (Note 2)......................... 45,331,834 62,144,958 111,587 147,024 Change in net unrealized appreciation (depreciation) on investments...................... 37,317,852 38,270,990 (31,219) 63,763 ------------ ------------ -------------- -------------- ----------- ----------- Net increase in net assets resulting from operations........ 97,666,006 129,438,301 26,228,977 44,915,266 961,693 2,156,839 Distributions to shareholders: From net investment income........ (14,602,894) (28,593,156) (26,228,977) (44,915,266) (881,325) (1,946,052) From net realized gain from investment transactions.......... (61,376,451) Capital share transactions, net (Note 3)........................... 66,389,019 80,316,642 (142,720,316) 279,295,599 1,205,893 (3,150,453) ------------ ------------ -------------- -------------- ----------- ----------- Net increase (decrease) in net assets........................... 149,452,131 119,785,336 (142,720,316) 279,295,599 1,286,261 (2,939,666) NET ASSETS: Beginning of period................. 792,378,256 672,592,920 1,169,095,568 889,799,969 37,836,675 40,776,341 ------------ ------------ -------------- -------------- ----------- ----------- End of period....................... $941,830,387 $792,378,256 $1,026,375,252 $1,169,095,568 $39,122,936 $37,836,675 ------------ ------------ -------------- -------------- ----------- ----------- ------------ ------------ -------------- -------------- ----------- ----------- - -------------------------------------- ------------ ------------ -------------- -------------- ----------- ----------- (1) Includes undistributed net investment income of: $ 1,171,463 $ 758,037
The accompanying notes are an integral part of the financial statements. 74 STATEMENTS OF CHANGES IN NET ASSETS -----------------------------------------------------------------
Six Months Ended June 30, 1998 COLUMBIA COLUMBIA COLUMBIA (Unaudited) and FIXED INCOME SECURITIES MUNICIPAL BOND HIGH YIELD Year Ended December 31, 1997 FUND, INC. FUND, INC. FUND, INC. -------------------------- ------------------------------ ------------------------ 1998 1997 1998 1997 1998 1997 ------------ ------------ -------------- -------------- ----------- ----------- INCREASE IN NET ASSETS: Operations: Net investment income............. $ 12,517,604 $ 23,438,026 $ 9,590,645 $ 19,046,726 $ 1,773,028 $ 2,832,822 Net realized gain from investments (Note 2)......................... 2,061,260 2,758,117 2,706,240 2,429,586 447,950 1,148,575 Change in net unrealized appreciation (depreciation) on investments...................... (24,410) 7,594,450 (3,372,676) 10,155,954 (235,088) 279,884 ------------ ------------ -------------- -------------- ----------- ----------- Net increase in net assets resulting from operations........ 14,554,454 33,790,593 8,924,209 31,632,266 1,985,890 4,261,281 Distributions to shareholders: From net investment income........ (12,517,604) (23,438,026) (9,590,645) (19,046,726) (1,773,028) (2,832,822) In excess of net investment income........................... (4,724)* From net realized gain from investment transactions.......... (847,470) (2,276,966) (1,136,542) Capital share transactions, net (Note 3)........................... 28,166,638 15,406,761 9,100,749 23,176,895 11,022,370 10,168,259 ------------ ------------ -------------- -------------- ----------- ----------- Net increase in net assets........ 30,203,488 24,911,858 8,434,313 33,480,745 11,235,232 10,460,176 NET ASSETS: Beginning of period................. 381,332,754 356,420,896 409,148,175 375,667,430 39,278,409 28,818,233 ------------ ------------ -------------- -------------- ----------- ----------- End of period....................... $411,536,242 $381,332,754 $ 417,582,488 $ 409,148,175 $50,513,641 $39,278,409 ------------ ------------ -------------- -------------- ----------- ----------- ------------ ------------ -------------- -------------- ----------- -----------
* On a tax basis, there was no return of capital. The accompanying notes are an integral part of the financial statements. 75 NOTES TO FINANCIAL STATEMENTS ----------------------------------------------------------------- -- 1. SIGNIFICANT ACCOUNTING POLICIES: -- The Columbia Funds (the Funds) consist of Columbia Common Stock Fund, Inc. (CCSF), Columbia Growth Fund, Inc. (CGF), Columbia International Stock Fund, Inc. (CISF), Columbia Special Fund, Inc. (CSF), Columbia Small Cap Fund, Inc. (CSCF), Columbia Real Estate Equity Fund, Inc. (CREF), Columbia Balanced Fund, Inc. (CBF), Columbia Daily Income Company (CDIC), Columbia U.S. Government Securities Fund, Inc. (CUSG), Columbia Fixed Income Securities Fund, Inc. (CFIS), Columbia Municipal Bond Fund, Inc. (CMBF), and Columbia High Yield Fund, Inc. (CHYF). All Funds are open-end investment companies registered under the Investment Company Act of 1940, as amended, and are diversified except CMBF, which is non-diversified. The policies described below are consistently followed by the Funds in the preparation of their financial statements in conformity with generally accepted accounting principles. INVESTMENT VALUATION. The values of CCSF, CGF, CISF, CSF, CSCF, CREF and CBF equity investments are 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. Temporary cash investments in short-term securities (principally repurchase agreements) are valued at cost, which approximates market. CDIC investments are carried at values deemed best to reflect their fair values as determined in good faith by or under the supervision of officers of CDIC, specifically so authorized by its Directors. These values are based on cost adjusted for amortization of discount or premium and accrued interest, unless unusual circumstances indicate that another method of determining fair value should be considered. CBF, CUSG, CFIS, CMBF and CHYF fixed income investments are carried at values deemed best to reflect their fair values as determined in good faith by or under the supervision of officers of CBF, CUSG, CFIS, CMBF and CHYF, specifically so authorized by their Directors. These values are based on market value as quoted by dealers who are market makers in these securities or by an independent pricing service unless unusual circumstances indicate that another method of determining fair value should be considered. Market values for CBF, CUSG, CFIS and CHYF fixed income investments are based on the average of bid and ask prices and market value for CMBF is based on bid prices, or by reference to other securities with comparable ratings, interest rates and maturities. Temporary cash investments in short-term securities (principally repurchase agreements) are valued at cost, which approximates market. 76 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- -- 1. SIGNIFICANT ACCOUNTING POLICIES, CONTINUED -- AFFILIATED ISSUERS. Under the Investment Company Act of 1940, as amended, an issuer is an "affiliated issuer" of a Fund if the Fund holds 5% or more of that issuer's outstanding voting securities or is held under common control. CSF had investments in such affiliated issuers at June 30, 1998 as follows:
DIVIDEND INCOME BALANCE OF BALANCE OF JANUARY 1, SHARES HELD GROSS GROSS SHARES HELD VALUE 1998- DECEMBER 31, PURCHASES & SALES & JUNE 30, JUNE 30, JUNE 30, NAME OF ISSUER 1997 ADDITIONS REDUCTIONS 1998 1998 1998 - ------------------------------ ---------------- ----------- ---------- ---------------- ------------- --------------- Columbia Special Fund (a) AnnTaylor Stores Corp......... 1,240,000 160,000 1,400,000 $ 29,662,500 Celadon Group, Inc............ 500,000 500,000 9,500,000 Crown Craft, Inc.............. -- 544,800 544,800 8,376,300 $ 15,000 Gadzooks, Inc................. 700,000 10,000 710,000 19,569,375 Integrated Measurement Syst... 300,000 300,000 -- Osmonics, Inc................. 869,000 108,300 977,300 11,666,519 Resmed, Inc................... 500,000 5,000 505,000 23,009,063 Schnitzer Steel Industries.... 550,000 550,000 -- Vans, Inc..................... 860,000 15,000 60,000 815,000 7,895,313 Columbia Balanced Fund (b) Fleet Mortgage Group, Inc..... 550,000 550,000 -- ------------- ------- Total Affiliated Issuers.................................................................. $ 109,679,070 $ 15,000 ------------- ------- ------------- -------
(a) Fund holds 5% or more of that issuer's outstanding shares. During the period CSF held 800,000 shares of Abercrombie & Fitch Co. This was more than 5% of that issuer's outstanding shares, until May 1998, when additional shares were issued. At that point Abercrombie & Fitch Co. was no longer considered an affiliate of CSF, since less than 5% of outstanding shares were held. (b) Fund held an investment under common control. (Note 4) FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS. CISF enters into forward foreign currency exchange contracts to hedge certain portfolio securities denominated in foreign currencies. Forward contracts are recorded at market value. CISF 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 increase (resulting from a change in exchange rates) in value of the securities denominated in that currency. Net realized loss arising from forward contracts amounted to $614,553 and are included in net realized loss from foreign currency transactions. CISF had no outstanding forward contracts on June 30, 1998. 77 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- -- 1. SIGNIFICANT ACCOUNTING POLICIES, -- CONTINUED FOREIGN CURRENCY TRANSLATIONS. The books and records of CISF are maintained in U.S. dollars. Foreign currency transactions are translated into U.S. dollars on the following basis: (i) market value of investment securities, other assets, and liabilities at the daily rates of exchange on the valuation date, and (ii) purchases and sales of investment securities, dividend and interest income and certain expenses at the rates of exchange prevailing on the respective dates of such transactions. CISF 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 of securities held. Such changes are included with the net realized and unrealized gain or loss from investments. Reported net realized foreign currency gains or losses arise from sales and maturities of short-term securities, 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 CISF's books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, other than investments in securities, resulting from changes in the exchange rates. INTEREST AND DIVIDEND INCOME. Interest income is recorded on the accrual basis and dividend income is recorded on the ex-dividend date. The majority of dividend income recorded by CREF is from Real Estate Investment Trusts (REITs). For tax purposes, a portion of these dividends consist of capital gains and return of capital. For financial reporting purposes, these dividends are recorded as dividend income. SHAREHOLDER DISTRIBUTIONS. CCSF, CREF and CBF distribute net investment income quarterly and any net realized gains from investment transactions annually. CGF, CISF, CSF and CSCF distribute net investment income and any net realized gains annually. CDIC distributes its net investment income daily - including any realized investment gains or losses. CUSG, CFIS, CMBF and CHYF distribute their net investment income monthly and any net realized gains annually. Distributions to shareholders are recorded on the ex-dividend date. 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 and return of capital received from REITS. 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 revenues and expenses during the reporting period. Actual results could differ from those estimates. FEDERAL INCOME TAXES. The Funds have made no provision for federal income taxes on net investment income or net realized gains from sales of securities, since it is the intention of the Funds to comply with the provisions of the Internal Revenue Code available to certain investment companies, and to make distributions of income and security profits sufficient to relieve them from substantially all federal income taxes. 78 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- -- 1. SIGNIFICANT ACCOUNTING POLICIES, -- CONTINUED OTHER. Investment transactions are accounted for on the date the investments are purchased or sold. The cost of investments sold is determined by the use of the specific identification method for both financial reporting and income tax purposes. Realized gains and losses from investment transactions and unrealized appreciation or depreciation of investments are reported on the basis of identified costs. The Funds, through their custodians, receive delivery of underlying securities collateralizing repurchase agreements (included in temporary cash investments). Market values of these securities are required to be at least 100% of the cost of the 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. CHYF 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. At June 30, 1998, 42% of the Fund's debt securities were rated Ba and 58% were rated B by Moody's Investor Services, Inc. 79 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- -- 2. INVESTMENT TRANSACTIONS -- Aggregate purchases, sales and maturities, net realized gain (loss) and unrealized appreciation (depreciation) of investments, including temporary cash investments for CDIC and excluding temporary cash investments for all other Funds, as of and for the period ended June 30, 1998, were as follows:
COLUMBIA COLUMBIA COLUMBIA COLUMBIA COMMON STOCK GROWTH INTERNATIONAL STOCK SPECIAL FUND, INC. (CCSF) FUND, INC. (CGF) FUND, INC. (CISF) FUND, INC. (CSF) ----------------- ---------------- ------------------- ---------------- PURCHASES: Investment securities other than U.S. Government obligations..... $687,552,683 $ 895,797,540 $ 61,338,398 $ 767,338,059 ----------------- ---------------- ------------------- ---------------- ----------------- ---------------- ------------------- ---------------- SALES AND MATURITIES: Investment securities other than U.S. Government obligations..... $648,216,660 $ 844,518,395 $ 64,108,730 $1,069,218,036 ----------------- ---------------- ------------------- ---------------- ----------------- ---------------- ------------------- ---------------- NET REALIZED GAIN (LOSS): Investment securities other than U.S. Government obligations..... $ 73,273,622 $ 92,027,391 $ (2,665,575) $ 101,287,000 ----------------- ---------------- ------------------- ---------------- ----------------- ---------------- ------------------- ---------------- UNREALIZED APPRECIATION (DEPRECIATION) AS OF JUNE 30, 1998: Appreciation..................... $197,830,716 $ 512,747,036 $ 44,559,590 $ 196,292,355 Depreciation..................... (8,672,528) (10,576,353) (8,219,147) (60,997,328) ----------------- ---------------- ------------------- ---------------- Net unrealized appreciation.... $189,158,188 $ 502,170,683 $ 36,340,443 $ 135,295,027 ----------------- ---------------- ------------------- ---------------- ----------------- ---------------- ------------------- ---------------- UNREALIZED APPRECIATION (DEPRECIATION) FOR FEDERAL INCOME TAX PURPOSES AS OF JUNE 30, 1998: Appreciation..................... $197,683,927 $ 512,620,917 $ 44,550,371 $ 195,879,854 Depreciation..................... (8,693,770) (10,576,353) (8,484,910) (61,968,222) ----------------- ---------------- ------------------- ---------------- Net unrealized appreciation.... $188,990,157 $ 502,044,564 $ 36,065,461 $ 133,911,632 ----------------- ---------------- ------------------- ---------------- ----------------- ---------------- ------------------- ---------------- For federal income tax purposes, the cost of investments owned at June 30, 1998..................... $703,861,382 $1,141,994,820 $110,191,978 $ 881,175,551 ----------------- ---------------- ------------------- ---------------- ----------------- ---------------- ------------------- ----------------
The net realized gain for CGF and CSF includes proceeds of $86,468 and $134,882, respectively, from shareholder class action suits related to securities held by those Funds. 80 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- -- 2. INVESTMENT TRANSACTIONS, CONTINUED --
COLUMBIA COLUMBIA REAL ESTATE COLUMBIA COLUMBIA SMALL CAP EQUITY FUND, INC. BALANCED DAILY INCOME FUND, INC. (CSCF) (CREF) FUND, INC. (CBF) COMPANY (CDIC) ----------------- ----------------- ---------------- --------------- PURCHASES: Investment securities other than U.S. Government obligations............... $111,229,388 $ 39,134,752 $ 402,069,573 $5,507,507,755 U.S. Government obligations........... 236,382,774 ----------------- ----------------- ---------------- --------------- Total purchases..................... $111,229,388 $ 39,134,752 $ 638,452,347 $5,507,507,755 ----------------- ----------------- ---------------- --------------- ----------------- ----------------- ---------------- --------------- SALES AND MATURITIES: Investment securities other than U.S. Government obligations............... $ 88,436,946 $ 8,636,075 $ 284,796,612 $5,647,302,799 U.S. Government obligations........... 298,645,677 ----------------- ----------------- ---------------- --------------- Total sales and maturities.......... $ 88,436,946 $ 8,636,075 $ 583,442,289 $5,647,302,799 ----------------- ----------------- ---------------- --------------- ----------------- ----------------- ---------------- --------------- NET REALIZED GAIN (LOSS): Investment securities other than U.S. Government obligations............... $ 3,272,493 $ (49,757) $ 45,608,554 U.S. Government obligations........... (276,720) ----------------- ----------------- ---------------- Total net realized gain (loss)...... $ 3,272,493 $ (49,757) $ 45,331,834 ----------------- ----------------- ---------------- ----------------- ----------------- ---------------- UNREALIZED APPRECIATION (DEPRECIATION) AS OF JUNE 30, 1998:................... Appreciation.......................... $ 21,269,542 $ 19,031,410 $ 137,424,943 Depreciation.......................... (5,564,618) (2,345,933) (5,786,733) ----------------- ----------------- ---------------- Net unrealized appreciation......... $ 15,704,924 $ 16,685,477 $ 131,638,210 ----------------- ----------------- ---------------- ----------------- ----------------- ---------------- UNREALIZED APPRECIATION (DEPRECIATION) FOR FEDERAL INCOME TAX PURPOSES AS OF JUNE 30, 1998: Appreciation.......................... $ 21,269,542 $ 21,060,159 $ 137,323,540 Depreciation.......................... (5,613,266) (2,340,209) (5,816,063) ----------------- ----------------- ---------------- Net unrealized appreciation......... $ 15,656,276 $ 18,719,950 $ 131,507,477 ----------------- ----------------- ---------------- ----------------- ----------------- ---------------- For federal income tax purposes, the cost of investments owned at June 30, 1998................................... $110,067,285 $141,459,390 $ 787,860,511 $1,033,953,887 ----------------- ----------------- ---------------- --------------- ----------------- ----------------- ---------------- ---------------
81 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- -- 2. INVESTMENT TRANSACTIONS, CONTINUED --
COLUMBIA U.S. COLUMBIA FIXED COLUMBIA COLUMBIA GOVERNMENT SECURITIES INCOME SECURITIES MUNICIPAL BOND HIGH YIELD FUND, INC. (CUSG) FUND, INC. (CFIS) FUND, INC. (CMBF) FUND, INC. (CHYF) --------------------- ----------------- ----------------- ----------------- PURCHASES: Investment securities other than U.S. Government obligations............... $ 70,487,779 $ 52,308,325 $29,515,204 U.S. Government obligations........... $30,561,662 161,566,965 --------------------- ----------------- ----------------- ----------------- Total purchases..................... $30,561,662 $232,054,744 $ 52,308,325 $29,515,204 --------------------- ----------------- ----------------- ----------------- --------------------- ----------------- ----------------- ----------------- SALES AND MATURITIES: Investment securities other than U.S. Government obligations............... $ 44,935,895 $ 37,823,691 $17,504,679 U.S. Government obligations........... $29,048,341 149,463,131 --------------------- ----------------- ----------------- ----------------- Total sales and maturities.......... $29,048,341 $194,399,026 $ 37,823,691 $17,504,679 --------------------- ----------------- ----------------- ----------------- --------------------- ----------------- ----------------- ----------------- NET REALIZED GAIN: Investment securities other than U.S. Government obligations............... $ 576,904 $ 2,706,240 $ 447,950 U.S. Government obligations........... $ 111,587 1,484,356 --------------------- ----------------- ----------------- ----------------- Total net realized gain............. $ 111,587 $ 2,061,260 $ 2,706,240 $ 447,950 --------------------- ----------------- ----------------- ----------------- --------------------- ----------------- ----------------- ----------------- UNREALIZED APPRECIATION (DEPRECIATION) AS OF JUNE 30, 1998: Appreciation.......................... $ 83,582 $ 10,069,762 $ 20,851,215 $ 1,097,580 Depreciation.......................... (23,851) (494,278) (160,521) (202,004) --------------------- ----------------- ----------------- ----------------- Net unrealized appreciation......... $ 59,731 $ 9,575,484 $ 20,690,694 $ 895,576 --------------------- ----------------- ----------------- ----------------- --------------------- ----------------- ----------------- ----------------- UNREALIZED APPRECIATION (DEPRECIATION) FOR FEDERAL INCOME TAX PURPOSES AS OF JUNE 30, 1998: Appreciation.......................... $ 76,723 $ 10,045,300 $ 20,842,272 $ 1,097,580 Depreciation.......................... (23,851) (494,278) (160,521) (202,729) --------------------- ----------------- ----------------- ----------------- Net unrealized appreciation......... $ 52,872 $ 9,551,022 $ 20,681,751 $ 894,851 --------------------- ----------------- ----------------- ----------------- --------------------- ----------------- ----------------- ----------------- For federal income tax purposes, the cost of investments owned at June 30, 1998................................... $38,614,792 $391,882,682 $391,040,866 $46,496,495 --------------------- ----------------- ----------------- ----------------- --------------------- ----------------- ----------------- -----------------
82 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- -- 3. CAPITAL STOCK --
COLUMBIA COLUMBIA COLUMBIA COMMON STOCK GROWTH INTERNATIONAL STOCK FUND, INC. (CCSF) FUND, INC. (CGF) FUND, INC. (CISF) ----------------------------- ------------------------------- ----------------------------- 1998 1997 1998 1997 1998 1997 ------------- ------------- -------------- -------------- ------------- ------------- SHARES: Shares sold................... 7,399,015 12,609,458 6,492,273 9,453,209 2,897,301 6,414,910 Shares issued for reinvestment of dividends................. 116,410 3,039,307 4,230,608 1,146,267 ------------- ------------- -------------- -------------- ------------- ------------- 7,515,425 15,648,765 6,492,273 13,683,817 2,897,301 7,561,177 Less shares redeemed.......... (6,834,619) (7,908,821) (4,577,065) (9,715,431) (3,689,151) (5,939,634) ------------- ------------- -------------- -------------- ------------- ------------- Net increase (decrease) in shares....................... 680,806 7,739,944 1,915,208 3,968,386 (791,850) 1,621,543 ------------- ------------- -------------- -------------- ------------- ------------- ------------- ------------- -------------- -------------- ------------- ------------- AMOUNTS: Sales......................... $ 171,971,507 $ 277,332,028 $ 246,733,324 $ 329,861,186 $ 42,078,095 $ 98,515,375 Reinvestment of dividends..... 2,886,723 66,961,124 145,279,077 15,703,862 ------------- ------------- -------------- -------------- ------------- ------------- 174,858,230 344,293,152 246,733,324 475,140,263 42,078,095 114,219,237 Less redemptions.............. (162,385,303) (175,504,043) (174,425,048) (339,050,645) (53,584,785) (92,291,698) ------------- ------------- -------------- -------------- ------------- ------------- Net increase (decrease)....... $ 12,472,927 $ 168,789,109 $ 72,308,276 $ 136,089,618 $ (11,506,690) $ 21,927,539 ------------- ------------- -------------- -------------- ------------- ------------- ------------- ------------- -------------- -------------- ------------- ------------- Capital stock authorized (shares)..................... 100,000,000 100,000,000 100,000,000 Par Value..................... no par $ .01 no par
COLUMBIA COLUMBIA COLUMBIA SPECIAL SMALL CAP REAL ESTATE EQUITY FUND, INC. (CSF) FUND, INC. (CSCF) FUND, INC. (CREF) ------------------------------- ---------------------------- ----------------------------- 1998 1997 1998 1997 1998 1997 -------------- -------------- ------------- ------------ ------------- ------------- SHARES: Shares sold...................... 8,369,150 17,301,738 4,024,881 6,092,245 4,504,332 9,713,082 Shares issued for reinvestment of dividends....................... 5,787,116 229,093 154,401 444,904 -------------- -------------- ------------- ------------ ------------- ------------- 8,369,150 23,088,854 4,024,881 6,321,338 4,658,733 10,157,986 Less shares redeemed............. (20,168,961) (41,278,382) (2,162,921) (2,149,149) (3,029,953) (6,308,136) -------------- -------------- ------------- ------------ ------------- ------------- Net increase (decrease) in shares.......................... (11,799,811) (18,189,528) 1,861,960 4,172,189 1,628,780 3,849,850 -------------- -------------- ------------- ------------ ------------- ------------- -------------- -------------- ------------- ------------ ------------- ------------- AMOUNTS: Sales............................ $ 176,063,560 $ 365,659,534 $ 71,148,400 $ 97,707,061 $ 82,772,333 $ 168,764,062 Reinvestment of dividends........ 117,246,979 3,814,406 2,790,016 8,209,513 -------------- -------------- ------------- ------------ ------------- ------------- 176,063,560 482,906,513 71,148,400 101,521,467 85,562,349 176,973,575 Less redemptions................. (426,992,726) (868,767,173) (38,004,768) (34,275,712) (55,547,756) (109,555,833) -------------- -------------- ------------- ------------ ------------- ------------- Net increase (decrease).......... $ (250,929,166) $ (385,860,660) $ 33,143,632 $ 67,245,755 $ 30,014,593 $ 67,417,742 -------------- -------------- ------------- ------------ ------------- ------------- -------------- -------------- ------------- ------------ ------------- ------------- Capital stock authorized (shares)........................ 100,000,000 100,000,000 100,000,000 Par Value........................ $ .01 no par no par
83 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- -- 3. CAPITAL STOCK, CONTINUED --
COLUMBIA COLUMBIA COLUMBIA U.S. BALANCED DAILY INCOME GOVERNMENT SECURITIES FUND, INC. (CBF) COMPANY (CDIC) FUND, INC. (CUSG) ----------------------------- --------------------------------- --------------------------- 1998 1997 1998 1997 1998 1997 ------------- ------------- --------------- --------------- ------------ ------------ SHARES: Shares sold................... 6,732,881 11,631,390 836,158,670 1,948,660,105 1,093,935 1,678,641 Shares issued for reinvestment of dividends................. 619,037 4,143,787 26,214,054 44,892,534 98,828 214,917 ------------- ------------- --------------- --------------- ------------ ------------ 7,351,918 15,775,177 862,372,724 1,993,552,639 1,192,763 1,893,558 Less shares redeemed.......... (4,363,468) (11,880,698) (1,005,093,040) (1,714,257,040) (1,047,159) (2,278,311) ------------- ------------- --------------- --------------- ------------ ------------ Net increase (decrease) in shares....................... 2,988,450 3,894,479 (142,720,316) 279,295,599 145,604 (384,753) ------------- ------------- --------------- --------------- ------------ ------------ ------------- ------------- --------------- --------------- ------------ ------------ AMOUNTS: Sales......................... $ 151,124,317 $ 255,961,711 $ 836,158,670 $ 1,948,660,105 $ 9,088,819 $ 13,843,228 Reinvestment of dividends..... 14,394,131 89,309,106 26,214,054 44,892,534 821,136 1,771,509 ------------- ------------- --------------- --------------- ------------ ------------ 165,518,448 345,270,817 862,372,724 1,993,552,639 9,909,955 15,614,737 Less redemptions.............. (99,129,429) (264,954,175) (1,005,093,040) (1,714,257,040) (8,704,062) (18,765,190) ------------- ------------- --------------- --------------- ------------ ------------ Net increase (decrease)....... $ 66,389,019 $ 80,316,642 $ (142,720,316) $ 279,295,599 $ 1,205,893 $ (3,150,453) ------------- ------------- --------------- --------------- ------------ ------------ ------------- ------------- --------------- --------------- ------------ ------------ Capital stock authorized (shares)..................... 100,000,000 2,000,000,000 100,000,000 Par Value..................... no par $ .001 $ .01
COLUMBIA FIXED COLUMBIA COLUMBIA INCOME SECURITIES MUNICIPAL BOND HIGH YIELD FUND, INC. (CFIS) FUND, INC. (CMBF) FUND, INC. (CHYF) ----------------------------- ----------------------------- ----------------------------- 1998 1997 1998 1997 1998 1997 ------------- ------------- ------------- ------------- ------------- ------------- SHARES: Shares sold...................... 5,828,012 8,909,289 4,797,289 6,372,612 2,022,726 2,127,208 Shares issued for reinvestment of dividends....................... 730,284 1,456,925 606,952 1,369,697 157,720 342,994 ------------- ------------- ------------- ------------- ------------- ------------- 6,558,296 10,366,214 5,404,241 7,742,309 2,180,446 2,470,202 Less shares redeemed............. (4,460,413) (9,188,186) (4,668,493) (5,853,872) (1,090,969) (1,457,004) ------------- ------------- ------------- ------------- ------------- ------------- Net increase in shares........... 2,097,883 1,178,028 735,748 1,888,437 1,089,477 1,013,198 ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- AMOUNTS: Sales............................ $ 78,355,249 $ 117,209,758 $ 59,726,584 $ 77,959,329 $ 20,465,173 $ 21,499,878 Reinvestment of dividends........ 9,810,072 19,185,059 7,553,466 16,813,005 1,596,362 3,460,890 ------------- ------------- ------------- ------------- ------------- ------------- 88,165,321 136,394,817 67,280,050 94,772,334 22,061,535 24,960,768 Less redemptions................. (59,998,683) (120,988,056) (58,179,301) (71,595,439) (11,039,165) (14,792,509) ------------- ------------- ------------- ------------- ------------- ------------- Net increase..................... $ 28,166,638 $ 15,406,761 $ 9,100,749 $ 23,176,895 $ 11,022,370 $ 10,168,259 ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- Capital stock authorized (shares)........................ 200,000,000 100,000,000 100,000,000 Par Value........................ $ .01 $ .01 no par
84 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- -- 4. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES --
COLUMBIA COLUMBIA COLUMBIA COLUMBIA SPECIAL COMMON STOCK GROWTH INTERNATIONAL STOCK FUND, INC. FUND, INC. (CCSF) FUND, INC. (CGF) FUND, INC. (CISF) (CSF) ----------------- --------------------- ------------------- ---------- Investment management fees incurred..... $2,612,332 $4,205,452 $745,167 $4,985,736 Investment management fee computation basis (percentage of daily net assets per annum)............................. 0.60 of 1% 0.75 of 1% to 1% 1% to $200,000,000 daily $500,000,000 net assets; .625 of daily net 1% between assets; $200,000,000 and 0.75 of 1% $500,000,000; and in excess 0.50 of 1% of in excess of $500,000,000 $500,000,000 Transfer agent fee (included in shareholder servicing costs)........... $267,543 $515,893 $175,697 $457,790 Fees earned by directors not affiliated with each Fund's investment advisor, transfer agent, or Columbia Management Co..................................... $4,345 $7,800 $743 $5,327
COLUMBIA COLUMBIA COLUMBIA COLUMBIA SMALL CAP REAL ESTATE EQUITY BALANCED DAILY INCOME FUND, INC. (CSCF) FUND, INC. (CREF) FUND, INC. (CBF) COMPANY (CDIC) ----------------- ------------------ ---------------- --------------------- Investment management fees incurred..... $598,044 $609,353 $2,201,334 $2,457,758 Investment management fee computation basis (percentage of daily net assets per annum)............................. 1% 0.75 of 1% 0.50 of 1% 0.50 of 1% to $500,000,000 daily net assets; 0.45 of 1% between $500,000,000 and $1,000,000,000; and 0.40 of 1% in excess of $1,000,000,000 Transfer agent fee (included in shareholder servicing costs)........... $91,895 $99,500 $301,237 $358,355 Fees earned by directors not affiliated with each Fund's investment advisor, transfer agent, or Columbia Management Co..................................... $623 $791 $4,416 $5,044 Value of investments held at June 30,1998 by: Columbia Management Co................ $23,537,387 Columbia Funds Management Company..... $12,143,005
85 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- -- 4. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES, CONTINUED --
COLUMBIA U.S. COLUMBIA FIXED COLUMBIA COLUMBIA GOVERNMENT SECURITIES INCOME SECURITIES MUNICIPAL BOND HIGH YIELD FUND, INC. (CUSG) FUND, INC. (CFIS) FUND, INC. (CMBF) FUND, INC. (CHYF) --------------------- ----------------- ----------------- ----------------- Investment management fees incurred..... $93,480 $990,783 $1,027,819 $139,977 Investment management fee computation basis (percentage of daily net assets per annum)............................. 0.50 of 1% 0.50 of 1% 0.50 of 1% 0.60 of 1% Transfer agent fee (included in shareholder servicing costs) $24,350 $137,803 $61,143 $26,532 Fees earned by directors not affiliated with each Fund's investment advisor, transfer agent, or Columbia Management Co..................................... $191 $1,966 $2,016 $241 Value of investments held at June 30,1998 by: Columbia Management Co................ $1,053,342 $6,629,541 Columbia Funds Management Company..... $249,432 $1,825,017
The investment advisor of the Funds is Columbia Funds Management Company (CFMC). The transfer agent for the Funds is Columbia Trust Company (CTC). The transfer agent is compensated based on a per account fee. CFMC, CTC and Columbia Management Co. (CMC), an affiliated company, are indirect wholly owned subsidiaries of Fleet Financial Group, Inc. (Fleet), a publicly owned multi-bank holding company registered under the Bank Holding Company Act of 1956. Pursuant to federal banking regulations, no officers or directors of the Funds are officers or directors of CFMC, CTC or CMC. J. Jerry Inskeep, Jr., an officer and director of the Funds, is affiliated with Fleet, but receives no compensation or other payment from the Funds. The contracts for investment advisory and transfer agent services must be renewed annually by a majority vote of the Funds' shareholders or by the directors of the Funds. At June 30, 1998, CCSF had investments in securities of U.S. Bancorp, which provides custodial services for the Fund. 86 NOTES 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 POSSIBLE LOSS OF PRINCIPAL. [LOGO] COLUMBIA FUNDS -- 1301 S.W. FIFTH AVENUE, PORTLAND, OREGON 97201 -- -- DIRECTORS -- --------------------------------- JAMES C. GEORGE J. JERRY INSKEEP, JR. THOMAS R. MACKENZIE 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 -- AUDITORS -- --------------------------------- PRICEWATERHOUSECOOPERS LLP 1300 S.W. FIFTH AVENUE, SUITE 3100 PORTLAND, OREGON 97201 -- TRANSFER AGENT -- --------------------------------- COLUMBIA TRUST COMPANY 1301 S.W. FIFTH AVENUE PORTLAND, OREGON 97201 THIS INFORMATION MUST BE PRECEDED OR ACCOMPANIED BY A CURRENT PROSPECTUS. THE MANAGERS' VIEWS CONTAINED IN THIS REPORT ARE SUBJECT TO CHANGE AT ANY TIME, BASED ON MARKET AND OTHER CONSIDERATIONS. PORTFOLIO CHANGES SHOULD NOT BE CONSIDERED RECOMMENDATIONS FOR ACTION BY INDIVIDUAL INVESTORS. FUNDS DISTRIBUTED BY PROVIDENT DISTRIBUTORS, INC. -----END PRIVACY-ENHANCED MESSAGE-----