-----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, B+nbtYrD9pFn626iSZ7Km1WjUi90cCUo8Jf+Mzai1TfQUnVQv4PoplRIvFwtbcPd zAZKRw4J0H/f+2/WVSTtKw== 0001047469-99-006791.txt : 19990223 0001047469-99-006791.hdr.sgml : 19990223 ACCESSION NUMBER: 0001047469-99-006791 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19981231 FILED AS OF DATE: 19990222 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: 99546829 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: 99546830 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: 99546831 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: 99546832 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: 99546833 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: 99546834 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: 99546835 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: 99546836 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: 99546837 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: 99546838 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: 99546839 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: 99546840 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 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 U.S. GOVERNMENT SECURITIES FUND ----------------------------------------------------------- COLUMBIA FIXED INCOME SECURITIES FUND ----------------------------------------------------------- COLUMBIA MUNICIPAL BOND FUND ----------------------------------------------------------- COLUMBIA HIGH YIELD FUND ----------------------------------------------------------- COLUMBIA DAILY INCOME COMPANY DEAR COLUMBIA INVESTOR: We are pleased to present the 1998 Columbia Funds Annual Report. Inside you will find updated financial information and summaries of each Fund's investment activity for the year, along with a chart illustrating the growth of a hypothetical investment, compared to each Fund's industry benchmark. The "Overview of the Markets" on page one summarizes stock and bond market activity during 1998. Themes and strategies used during the year to meet the objectives of each Fund are also described. We hope that you find this information helpful as you evaluate the performance of your investments. As always, we appreciate the confidence and trust you have placed in Columbia Funds, and we 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 THE FRONT COVER FEATURES A PHOTOGRAPH OF THE 81-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 ----------------------------------------------------------------- ANNUAL REPORT, DECEMBER 31, 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.....................................................34 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.....................................................36 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.....................................................40 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...........................................................10 Financial Highlights........................................................22 Schedule of Investments.....................................................46 Statement of Assets and Liabilities.........................................67 Statement of Operations.....................................................70 Statements of Changes in Net Assets.........................................74 COLUMBIA FIXED INCOME SECURITIES FUND Investment Review...........................................................11 Financial Highlights........................................................23 Schedule of Investments.....................................................47 Statement of Assets and Liabilities.........................................68 Statement of Operations.....................................................71 Statements of Changes in Net Assets.........................................74 COLUMBIA MUNICIPAL BOND 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 HIGH YIELD FUND Investment Review...........................................................13 Financial Highlights........................................................25 Schedule of Investments.....................................................59 Statement of Assets and Liabilities.........................................68 Statement of Operations.....................................................71 Statements of Changes in Net Assets.........................................75 COLUMBIA DAILY INCOME COMPANY 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 BACK AT 1998 1998 was an extraordinary year in many respects, most notably in the divergence of returns among different types of investments. Volatility and uncertainty characterized the markets, especially in the latter half of the year. Stock investors took a wild ride as the S&P 500 rose 17.71% in the first half, then fell 14.46% in the month of August, only to recover the year's gains and finish up 28.58% for the full year. This marked an unprecedented fourth consecutive year of greater than 20% returns for U.S. equity markets. Although market breadth improved in the fourth quarter, the smaller cap Russell 2000 Index ended the year with a loss of 2.55%. International markets generally performed poorly with the exception of Europe, which rose in anticipation of the benefits of the impending European Monetary Union. The bond market proved no exception to this pattern of divergent returns. Investors' flight to quality pushed yields on 30-year U.S. Treasuries to their lowest level in 30 years. However, yields on corporate, municipal and mortgage-backed debt barely budged. The difference between rates on bonds issued by the Treasury and those issued by corporations or municipalities remains at historically high levels. YIELD SPREAD: THE DIFFERENCE BETWEEN CORPORATES AND TREASURIES* EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
INTEREST RATE % 1/5/90 110 1/12/90 105 1/19/90 105 1/26/90 100 2/2/90 100 2/9/90 100 2/16/60 100 2/23/90 100 3/2/90 100 3/9/90 95 3/16/90 95 3/23/90 95 3/30/90 90 4/6/90 90 4/13/90 90 4/20/90 90 4/27/90 90 5/4/90 90 5/11/90 90 5/18/90 90 5/25/90 90 6/1/90 90 6/8/90 90 6/15/90 90 6/22/90 90 6/26/90 90 7/6/90 90 7/13/90 90 7/20/90 90 7/27/90 90 8/3/90 90 8/10/90 90 8/17/90 90 8/24/90 90 8/31/90 90 9/7/90 90 9/14/90 90 9/21/90 90 9/28/90 100 10/5/90 110 10/12/90 110 10/19/90 115 10/26/90 120 11/2/90 120 11/9/90 120 11/16/90 125 11/23/90 125 11/30/90 125 12/7/90 120 12/14/90 120 12/21/90 120 12/28/90 120 1/4/91 120 1/11/91 120 1/18/91 120 1/25/91 120 2/1/91 115 2/8/91 115 2/15/91 115 2/22/91 110 3/1/91 100 3/8/91 100 3/15/91 95 3/22/91 95 3/29/91 90 4/5/91 90 4/12/91 90 4/19/91 90 4/26/91 90 5/3/91 90 5/10/91 90 5/17/91 90 5/24/91 90 5/31/91 85 6/7/91 85 6/14/91 85 6/21/91 85 6/28/91 85 7/5/91 90 7/12/91 90 7/19/91 90 7/26/91 90 8/2/91 90 8/9/91 90 8/16/91 90 8/23/91 90 8/30/91 90 9/6/91 90 9/13/91 90 9/20/91 90 9/27/91 95 10/4/91 95 10/11/91 95 10/18/91 90 10/25/91 90 11/1/91 90 11/8/91 85 11/15/91 85 11/22/91 85 11/29/91 85 12/6/91 85 12/13/91 85 12/20/91 85 12/27/91 85 1/3/92 85 1/10/92 80 1/17/92 80 1/24/92 80 1/31/92 75 2/7/92 75 2/14/92 70 2/21/92 70 2/28/92 70 3/6/92 70 3/13/92 70 3/20/92 70 3/27/92 73 4/3/92 75 4/10/92 75 4/17/92 78 4/24/92 78 5/1/92 77 5/8/92 69 5/15/92 65 5/22/92 65 5/29/92 65 6/5/92 68 6/12/92 65 6/19/92 65 6/26/92 65 7/3/92 65 7/10/92 64 7/17/92 64 7/24/92 65 7/31/92 67 8/7/92 67 8/14/92 72 8/21/92 75 8/28/92 75 9/4/92 76 9/11/92 76 9/18/92 78 9/25/92 80 10/2/92 77 10/9/92 87 10/16/92 87 10/23/92 87 10/30/92 84 11/6/92 84 11/13/92 81 11/20/92 77 11/27/92 77 12/4/92 76 12/11/92 76 12/18/92 76 12/25/92 76 1/1/93 76 1/8/93 73 1/15/93 71 1/22/93 70 1/29/93 70 2/5/93 70 2/12/93 70 2/19/93 67 2/26/93 67 3/5/93 65 3/12/93 65 3/19/93 66 3/26/93 66 4/2/93 66 4/9/93 67 4/16/93 68 4/23/93 65 4/30/93 65 5/10/93 65 5/17/93 65 5/24/93 65 5/31/93 65 6/7/93 65 6/14/93 65 6/21/93 63 6/28/93 63 7/6/93 63 7/12/93 63 7/19/93 63 7/26/93 62 8/2/93 62 8/9/93 62 8/16/93 60 8/23/93 60 8/30/93 60 9/6/93 62 9/13/93 62 9/20/93 63 9/27/93 65 10/4/93 65 10/11/93 65 10/18/93 65 10/25/93 65 11/1/93 63 11/8/93 63 11/15/93 63 11/22/93 63 11/29/93 63 12/6/93 62 12/13/93 61 12/20/93 61 12/27/93 61 1/3/94 61 1/10/94 57 1/17/94 57 1/24/94 55 1/31/94 53 2/7/94 53 2/14/94 53 2/21/94 53 2/28/94 55 3/7/94 55 3/14/94 57 3/21/94 59 3/28/94 59 4/4/94 59 4/11/94 61 4/18/94 62 4/25/94 62 5/2/94 62 5/9/94 65 5/16/94 65 5/23/94 65 5/30/94 65 6/6/94 65 6/13/94 62 6/20/94 62 6/27/94 58 7/4/94 58 7/11/94 58 7/18/94 58 7/25/94 56 8/1/94 56 8/8/94 56 8/15/94 56 8/22/94 53 8/29/94 53 9/5/94 53 9/12/94 53 9/19/94 52 9/26/94 52 10/3/94 56 10/10/94 56 10/17/94 56 10/24/94 56 10/31/94 56 11/7/94 56 11/14/94 56 11/21/94 59 11/28/94 60 12/5/94 60 12/12/94 63 12/19/94 63 12/26/94 63 1/3/95 63 1/9/95 63 1/16/95 63 1/23/95 60 1/30/95 60 2/6/95 58 2/13/95 58 2/20/95 57 2/27/95 57 3/6/95 57 3/13/95 56 3/20/95 56 3/27/95 56 4/3/95 56 4/10/95 56 4/17/95 54 4/24/95 53 5/1/95 53 5/8/95 49 5/15/95 47 5/22/95 47 5/30/95 52 6/5/95 56 6/12/95 62 6/19/95 62 6/26/95 62 7/3/95 62 7/10/95 62 7/24/95 62 7/31/95 57 8/7/95 57 8/14/95 57 8/21/95 57 8/28/95 56 9/4/95 56 9/11/95 56 9/18/95 58 9/25/95 58 10/2/95 57 10/9/95 57 10/16/95 57 10/23/95 57 10/30/95 62 11/6/95 64 11/13/95 64 11/20/95 64 11/27/95 64 12/4/95 58 12/11/95 58 12/18/95 57 1/2/96 57 1/8/96 55 1/15/96 55 1/22/96 55 1/29/96 55 2/5/96 54 2/12/96 52 2/19/96 52 2/26/96 52 3/4/96 52 3/11/96 52 3/25/96 52 4/1/96 52 4/8/96 52 4/15/96 55 4/22/96 54 4/29/96 51 5/6/96 51 5/13/96 50 5/20/96 50 5/27/96 50 6/3/96 50 6/10/96 50 6/17/96 50 6/24/96 50 7/1/96 50 7/8/96 50 7/15/96 50 7/22/96 50 7/29/96 50 8/12/96 50 9/3/96 50 9/9/96 50 9/16/96 50 9/23/96 50 9/30/96 50 10/7/96 50 10/14/96 50 10/21/96 50 10/28/96 50 11/4/96 50 11/11/96 48 11/18/96 48 11/25/96 50 12/2/96 50 12/9/96 52 12/16/96 53 12/30/96 53 1/6/97 53 1/13/97 52 1/20/97 52 1/27/97 50 2/3/97 50 2/10/97 50 2/17/97 50 2/24/97 49 3/3/97 48 3/10/97 48 3/17/97 52 3/24/97 52 3/31/97 55 4/14/97 55 4/21/97 55 4/28/97 56 5/5/97 58 5/12/97 58 5/19/97 56 5/26/97 54 6/2/97 54 6/9/97 51 6/16/97 51 6/23/97 51 7/7/97 51 7/14/97 51 7/21/97 51 7/28/97 50 8/4/97 50 8/11/97 50 8/18/97 54 8/25/97 56 9/1/97 56 9/8/97 58 9/15/97 58 9/29/97 58 10/6/97 58 10/13/97 59 10/20/97 59 10/27/97 64 11/3/97 72 11/10/97 72 11/17/97 72 11/24/97 70 12/1/97 68 12/8/97 66 12/15/97 66 12/22/97 70 12/29/97 70 1/5/98 70 1/12/98 70 1/20/98 74 1/26/98 74 2/2/98 75 2/9/98 75 2/17/98 70 2/23/98 70 3/2/98 70 3/9/98 67 3/16/98 67 3/23/98 68 3/30/98 68 4/10/98 68 4/17/98 67 4/24/98 67 5/1/98 67 5/8/98 67 5/15/98 68 5/22/98 68 5/29/98 71 6/5/98 75 6/12/98 83 6/19/98 83 6/26/98 84 7/6/98 84 7/20/98 84 7/27/98 84 8/10/98 88 8/17/98 92 8/24/98 96 8/31/98 114 9/8/98 112 9/14/98 112 9/21/98 112 9/28/98 112 10/5/98 112 10/12/98 125 10/19/98 130 10/26/98 130 11/2/98 125 11/9/98 113 11/16/98 110 11/23/98 100 11/30/98 100 12/4/98 108 12/11/98 112 Source - Columbia Management Company
* 10-Year A-rated Industrial Bonds versus 10-Year Treasury Bonds: the higher the plot points, the greater the differences in yields. In order to calm financial markets and head off the effects of a slower world economy on the U.S., the Federal Reserve lowered short-term interest rates by a total of .75% in three steps during late 1998, leading the markets to stage a spectacular recovery. Technology and Internet stocks, pharmaceutical companies, consumer retailers and communications names were among the best performing sectors in 1998, while commodity, real estate, oils and basic industry stocks lagged for the year. MARKET OUTLOOK The outlook for the U.S. economy seems to be more dependent than ever on developments overseas, and conditions in many regions around the world are a cause for concern. While it seems clear that world growth is slowing, it is still difficult to judge how this will affect the domestic economy. It appears likely that there will be continued pressure on U.S. corporate profits stemming from overseas activity in 1999. We expect U.S. economic growth to slow from the rapid pace of previous years. However, after the concerted efforts of the Federal Reserve and other central banks worldwide to reduce rates, we do not anticipate a recession. These easing actions have steadied financial markets so that share prices have recovered, credit spreads have stabilized and new issue activity has resumed. Buoyed by low interest rates, consumer spending has grown faster than income recently, generating a negative savings rate. Such strong growth in demand seems unsustainable and consumers may be quick to cut back if their expectations are deflated. Given these concerns, Wall Street earnings estimates for 1999 seem optimistic. The present benign inflation environment, however, leaves the Fed ample room to adjust rates down to reassure investors and refuel consumption. 1 AN OVERVIEW OF THE MARKETS - -------------------------------------------------------------------------------- ANALYSTS' 1999 EARNINGS ESTIMATES MAY BE OPTIMISTIC EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
(% CHANGE) 1994 Q1 16.50% Q2 15.10% Q3 19.80% Q4 21.50% 1995 Q1 22.50% Q2 22.00% Q3 19.50% Q4 13.20% 1996 Q1 10.40% Q2 11.50% Q3 9.70% Q4 14.20% 1997 Q1 15.80% Q2 11.70% Q3 13.00% Q4 10.30% 1998 Q1 5.00% Q2 5.10% Q3 (7.70%) Q4 est. (1.50%) 1999 est. Q1 7.20% Q2 12.00% Q3 23.70% Q4 23.80% Source: I/B/E/S Inc.
INVESTMENT STRATEGY Throughout 1998, a narrow universe of growth stocks saw strong price gains, while the broader market lagged, due to ongoing concerns about profit growth. For example, 10 companies in the S&P 500 Index accounted for 43% of its gain. Expectations for moderating growth in the U.S. and around the world lead us to emphasize companies with strong records of delivering solid earnings gains in a more difficult environment. We expect that divergence in earnings and profit growth prospects among various sectors could lead to a continuing gap between the best and worst performing groups over the coming months. Columbia's focus remains on stocks we expect to be favorably influenced by such investment themes as "Aging of America" and "Technology Age." While we believe the long-term trends underlying the themes remain in place, we are taking a more selective investment approach to groups within the themes. To this end, we are concentrating on industries we expect to benefit from growth in secular spending, which can continue to expand even in a downturn. Therefore, the Funds are positioned with strong weightings in technology, communications and pharmaceutical stocks. Given our expectations for slower growth, we expect interest rates to remain stable or trend lower. It seems unlikely that the Fed will take action to raise or lower its key rate in the near term until conditions in the U.S. and overseas become clearer. Inflation seems to be under control, and the U.S. budget surplus continues to reduce the government's demand for new funds. In this environment, both nominal and real yields (real yields are interest rates minus inflation) on bonds look particularly attractive. So that you may evaluate how the Columbia Funds performed given this economic and financial market backdrop, the following pages contain discussions of the Funds' investment activity during 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, portfolio transaction costs or cash flows. Thank you for your investment in Columbia Funds. We appreciate your confidence and look forward to serving your investment needs in the years to come. THE INVESTMENT TEAM COLUMBIA FUNDS FEBRUARY 1999 2 INVESTMENT REVIEW - -------------------------------------------------------------------------------- [LOGO] - --------------------------------------------- --------------------------------------------- -- COLUMBIA COMMON STOCK FUND -- -------------------------------- In a volatile year for the stock market, Columbia Common Stock Fund returned 26.28% for the 12 months through December 31, 1998. Much of the Fund's performance can be attributed to its gain of 23.30% in a very strong fourth quarter. Throughout the year, the Fund benefited from a focus on larger capitalization names that offered higher than average earnings potential. We bypassed cyclical issues (stocks that rise quickly when the economy is on the upswing and fall when the economy turns down) and trimmed holdings in REITs and electric and gas utilities. Our continued focus on retail and domestic consumer stocks benefited the portfolio in the fourth quarter, as a series of three Federal Reserve Board short-term interest rate cuts from September 29 to November 17 renewed consumer confidence. TOP TEN HOLDINGS
% of Net Assets Microsoft Corp. 4.6 General Electric Co. 4.0 Pfizer, Inc. 3.5 Tyco International Ltd. 3.1 Warner-Lambert Co. 2.7 Bristol-Myers Squibb Co. 2.7 IBM Corp. 2.6 MCI Worldcom, Inc. 2.6 Dayton-Hudson Corp. 2.4 Philip Morris Cos., Inc. 2.4
As of December 31, 1998 An emphasis on certain investment themes also played a large role in stock selection, including "The Aging of America," which hinges on opportunities resulting from the aging U.S. population, "Technology Age," which focuses on the increased creation, distribution and manipulation of information and "Value-Added Consolidators," a study of companies that can accelerate earnings growth through synergistic acquisitions. We expect to continue emphasizing "The Aging of America" and "Technology Age" through 1999. SECTORS OF EMPHASIS
% of Net Assets Technology 21.4 Health Care 16.6 Finance 14.3 Consumer Non-Durables 10.1 Food & Household Products 8.6
As of December 31, 1998 Looking forward, we anticipate continuing low inflation, with earnings growth remaining difficult. With this in mind, we continue to favor reasonably valued, domestic-oriented companies that offer more dependable earnings growth prospects. Emphasizing large, established companies, the Fund currently has a median market capitalization of $29.4 billion and is well diversified with 70 holdings in the portfolio at year-end. GROWTH OF $10,000 SINCE INCEPTION EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
AVERAGE ANNUAL TOTAL RETURNS AS OF DECEMBER 31, 1998 CCSF S&P 500 1 Year 26.28% 28.58% 5 Years 20.60% 24.07% Since Inception 19.19% 19.95% COLUMBIA COMMON STOCK FUND S&P 500 10/1/91 $10,000.00 $10,000.00 12/31/91 $11,025.00 $10,838.00 12/31/92 $12,126.40 $11,663.86 12/31/93 $14,119.98 $12,839.57 12/31/94 $14,410.85 $13,009.05 12/31/95 $18,855.15 $17,897.86 12/31/96 $22,760.06 $22,007.21 12/31/97 $28,534.28 $29,348.81 12/31/98 $36,028.00 $37,736.00 Past Performance is not predictive of future results.
3 INVESTMENT REVIEW - -------------------------------------------------------------------------------- [LOGO] - ------------------------------------------------- ------------------------------------------------- -- COLUMBIA GROWTH FUND -- -------------------------- Columbia Growth Fund gained 30.34% for the year ended December 31, 1998, outperforming the S&P 500, which returned 28.58% for the same period. In a volatile year for the stock market, the Fund maintained its focus on stocks with dependable earnings growth. Throughout the year, investment themes also shaped stock selection, as we targeted issues poised to profit from the aging of America and technological advances around the world. This led to an emphasis in health care and segments of technology and financial stocks. TOP TEN HOLDINGS
% of Net Assets Microsoft Corp. 4.5 Cisco Systems, Inc. 4.0 Abercrombie & Fitch Co. 3.4 General Electric Co. 3.2 Pfizer, Inc. 3.2 Tyco International Ltd. 3.0 Bristol-Myers Squibb Co. 2.8 Warner-Lambert Co. 2.7 MCI Worldcom, Inc. 2.5 Safeway, Inc. 2.3
As of December 31, 1998 With consumer spending and economic growth healthy in the first quarter of the year, the Fund benefited from increased exposure to domestic and consumer issues. By the third quarter, however, fears escalated that consumer spending would wane as individuals saw their wealth decrease with the sharp decline in stock prices. Concerns about a slowdown in spending depressed the Fund's consumer-oriented holdings, such as retail, radio broadcasting and cruise lines. We anticipated the Federal Reserve Board would adopt more stimulative policies, so we maintained and then increased our exposure to these consumer issues. Responding to fears of an economic slowdown, the Fed lowered rates three times between September 29 and November 17. This, combined with news of fiscal policy changes in Brazil and Japan, rekindled consumer and investor confidence. In the fourth quarter, the Fund's consumer issues advanced sharply, and we further increased exposure to this sector, while purchasing more technology stocks and other higher growth issues. Much of the Fund's one-year return can be attributed to its 25.59% gain in the fourth quarter. SECTORS OF EMPHASIS
% of Net Assets Technology 21.3 Health 20.0 Consumer Non-Durables 14.0 Finance 13.0 Food and Household Products 8.1
As of December 31, 1998 Despite the trend of strong consumer spending, we believe that growth of U.S. corporate earnings and world economies will slow. Accordingly, we will continue to emphasize issues that offer dependable earnings growth in a slowing economy. GROWTH OF $10,000 OVER 20 YEARS EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
AVERAGE ANNUAL TOTAL RETURNS AS OF DECEMBER 31, 1998 CGF S&P 500 1 Year 30.34% 28.58% 5 Years 21.32% 24.07% 10 Years 18.73% 19.21% 20 Years 18.90% 17.71% COLUMBIA GROWTH FUND S&P 500 12/31/78 $10,000.00 $10,000.00 12/31/79 $14,057.00 $11,835.00 12/31/80 $19,662.93 $15,663.62 12/31/81 $18,996.36 $14,888.27 12/31/82 $27,841.06 $18,089.25 12/31/83 $33,815.75 $22,144.86 12/31/84 $31,928.84 $23,508.99 12/31/85 $42,168.41 $30,928.42 12/31/86 $45,086.47 $36,693.48 12/31/87 $51,732.21 $38,627.23 12/31/88 $57,324.46 $45,020.03 12/31/89 $74,000.15 $59,250.86 12/31/90 $71,550.75 $57,443.71 12/31/91 $96,064.03 $74,946.81 12/31/92 $107,418.80 $80,657.76 12/31/93 $121,393.99 $88,788.06 12/31/94 $120,629.20 $89,960.06 12/31/95 $160,412.72 $123,767.05 12/31/96 $193,778.56 $152,183.97 12/31/97 $244,781.08 $202,952.54 12/31/98 $319,144.00 $260,920.00 Past Performance is not predictive of future results.
4 INVESTMENT REVIEW - -------------------------------------------------------------------------------- [LOGO] - ------------------------------------------ ------------------------------------------ -- COLUMBIA INTERNATIONAL STOCK FUND -- --------------------------------------- Columbia International Stock Fund returned 12.83% for the 12 months ended December 31, 1998. Throughout the year, positions in such growth areas as telecommunications and technology benefited perfor-mance, and we continue to favor them, along with pharmaceuticals. Despite a strong start, international markets suffered throughout the year, due to the continuing Asian currency crisis and a stalled Japanese economy. Europe, however, proved to be a bright spot. As European nations geared up to join the European Monetary Union (EMU), the entire region benefited from low interest rates and disciplined fiscal policies. TOP TEN HOLDINGS
% of Net Assets Aegon NV 3.6 Equant NV 3.3 Mannesmann AG 2.9 Glaxo Wellcome plc 2.5 SmithKline Beecham plc 2.4 British Telecommunications plc 2.2 Novartis AG 2.2 Unicredito Italiano S.p.A 2.2 Compass Group plc 2.1 Shimamura Co., Ltd. 1.9
As of December 31, 1998 During the first two quarters, the Fund's emphasis on Japanese exporters hurt performance. This was offset somewhat as the Fund began to take greater advantage of favorable investment opportunities in Europe, significantly increasing its exposure to the United Kingdom, France, Germany and Spain. Despite healthy economic activity in the region, European stock markets were affected by world turmoil, as several markets posted declines in the third quarter. The continued troubles in Southeast Asia, stagnation/deflation in Japan and news of troubles in Russia caused investors around the world to shun risk. Latin American countries, and Brazil in particular, felt pressure to devalue currencies. Sentiment improved in the fourth quarter when Brazil implemented a fiscal reform program and the International Monetary Fund agreed to provide a $41 billion assistance package. While a low exposure to Japan was appropriate for much of the year, the Fund increased its exposure as the yen strengthened against the dollar in October. Although we had reduced our position in financial stocks at the end of the third quarter, the financial stocks we retained in the portfolio rebounded strongly when the markets recovered. COUNTRIES OF EMPHASIS
% of Net Assets Japan 23.3 United Kingdom 18.0 France 10.0 Netherlands 8.1 Switzerland 7.1 Germany 6.4 Italy 4.8 Spain 4.4
As of December 31, 1998 Looking forward, it is clear that world growth rates are slowing. We will continue to favor European markets we believe still offer considerable opportunity. Japan could surprise the markets with new reform initiatives. However, with consensus opinion calling for continued recession, the outlook in Japan remains uncertain. GROWTH OF $10,000 SINCE INCEPTION EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
AVERAGE ANNUAL TOTAL RETURNS AS OF DECEMBER 31, 1998 MSCI FT/S&P CISF EAFE EURO-PAC 1 Year 12.83% 20.33% 19.31% 5 Years 8.50% 9.51% 8.75% Since Inception 11.79% 11.76% 10.96% COLUMBIA INTERNATIONAL MSCI FT/S&P STOCK FUND EAFE EURO-PAC 10/1/92 $10,000 $10,000 $10,000 12/31/92 $10,060 $9,623 $9,628 12/31/93 $13,417 $12,794 $12,665 12/31/94 $13,086 $13,825 $13,822 12/31/95 $13,760 $15,422 $15,290 12/31/96 $16,042 $16,403 $16,180 12/31/97 $17,882 $16,740 $16,144 12/31/98 $20,175 $20,147 $19,261 Past Performance is not predictive of future results. The MSCI EAFE Index will replace the FT/S&P Euro-Pac as the International Fund's benchmark index because the MSCI EAFE Index is a more commonly recognized index for international funds.
5 INVESTMENT REVIEW - -------------------------------------------------------------------------------- [LOGO] - ------------------------------------------------- ------------------------------------------------- -- COLUMBIA SPECIAL FUND -- --------------------------- The Special Fund returned 16.64% for the 12 months ended December 31, 1998. Small and mid-cap stocks struggled throughout the year, as risk-averse investors focused on a narrow group of large cap stocks. However, smaller stocks rebounded when the Federal Reserve Board delivered a series of three short-term interest rate cuts between September 29 and November 17, and investor confidence was rekindled. TOP TEN HOLDINGS
% of Net Assets American Stores Co. 4.6 Meyer (Fred), Inc. 4.4 ResMed, Inc. 3.7 Bed, Bath & Beyond, Inc. 3.0 Abercrombie & Fitch Co. 2.7 McKesson Corp. 2.4 Flserv, Inc. 2.3 Williams-Sonoma, Inc. 2.3 Service Corporation Int'l. 2.1 Cardinal Health, Inc. 2.1
As of December 31, 1998 Throughout the year, the Fund focused on domestic companies with relatively reliable growth rates. Consumer non-durables, business and consumer services, and certain health care companies benefited performance. In trading activity during the first half, a favorable housing market led us to increase our emphasis on products for the home. Water-related companies were also added to the portfolio, as trends to upgrade the quality of municipal water systems became evident. Although we began the year with a below-market weighting in technology, we significantly increased our exposure late in the third quarter and throughout the fourth quarter. REITs lagged throughout the year, so they were entirely eliminated from the portfolio in the first half. Weightings were also reduced in economically-sensitive industries such as metals, machinery, transportation and energy. Grocery stocks performed very well during the year, but we reduced our weighting in the fourth quarter, along with cash levels, as we increased holdings in radio, finance, information technology and health care. SECTORS OF EMPHASIS
% of Net Assets Business & Consumer Services 26.3 Health Care 21.0 Consumer Non-Durables 17.2 Food & Household Products 14.4
As of December 31, 1998 Looking forward, we believe the mid-cap sector is well positioned to benefit from broadening of the very narrow market returns of the last few years. Mid-cap stocks currently provide attractive growth prospects and valuations compared to large cap stocks. GROWTH OF $10,000 OVER 10 YEARS EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
AVERAGE ANNUAL TOTAL RETURNS AS OF DECEMBER 31, 1998 CSF S&P MIDCAP 400 RUSSELL 2000 1 Year 16.64% 19.11% (2.55%) 5 Year 14.51% 18.84% 11.87% 10 years 16.83% 19.30% 12.92% COLUMBIA SPECIAL FUND S&P MIDCAP 400 RUSSELL 2000 12/31/88 $10,000 $10,000 $10,000 12/31/89 $13,192 $13,555 $11,626 12/31/90 $11,558 $12,861 $9,358 12/31/91 $17,389 $19,306 $13,673 12/31/92 $19,772 $21,607 $16,190 12/31/93 $24,058 $24,621 $19,246 12/31/94 $24,609 $23,735 $18,896 12/31/95 $31,876 $31,078 $24,272 12/31/96 $36,043 $37,042 $28,275 12/31/97 $40,598 $49,003 $34,597 12/31/98 $47,359 $58,376 $33,718 Past Performance is not predictive of future results. The S&P MidCap 400 will replace the Russell 2000 as the Special Fund's benchmark index because the MidCap Index is more representative of the types of stocks held by the Fund.
6 INVESTMENT REVIEW - -------------------------------------------------------------------------------- [LOGO] - ------------------------------------------------ ------------------------------------------------ -- COLUMBIA SMALL CAP FUND -- ----------------------------- Columbia Small Cap Fund returned 4.69% for the year ended December 31, 1998, compared to -2.55% for the Russell 2000 Stock Index for the same period. At the start of the year, small cap stocks reached new highs, led by companies tied to the robust U.S. economy. The Fund benefited from an emphasis on consumer cyclicals, such as restaurants and providers of leisure products and services, along with certain technology issues. Performance was also helped by less exposure to energy and energy services, as falling oil prices weighed heavily on companies in that sector. TOP TEN HOLDINGS
% of Net Assets Pathogenesis Corp. 2.1 Ciber, Inc. 2.1 Transaction Systems Architects, Inc. (Class A) 2.0 Williams-Sonoma, Inc. 2.0 Cerner Corp. 1.9 Bed, Bath & Beyond, Inc. 1.9 Nova Corp. 1.9 Sterling Commerce, Inc. 1.8 Ames Department Stores, Inc. 1.6 Action Performance Cos., Inc. 1.6
As of December 31, 1998 Concerns about the global outlook and its potential impact on corporate earnings put pressure on the market by the third quarter. In turn, the Fund reduced exposure to economically-sensitive areas, such as office furniture, auto parts, semiconductor, capital equipment and construction stocks. Financial stocks were also reduced due to concerns that their earnings growth would slow. Following three short-term interest rate cuts by the Federal Reserve Board, the stock market rebounded sharply in the fourth quarter -- further evidence of its extreme volatility during the year. Small stocks led the charge, and the Fund erased its negative return by gaining 17.54% in the quarter. Cash levels were reduced to buy stocks in education, specialty retailing and information technology consulting sectors. SECTORS OF EMPHASIS
% of Net Assets Technology 25.7 Business & Consumer Services 19.0 Health Care 18.6 Consumer Non-Durables 16.4
As of December 31, 1998 In this uncertain environment, we will continue to seek companies capable of delivering above-average earnings growth over the long term. Interestingly, 1998 marked the fifth straight year of underperformance for small cap stocks relative to the S&P 500, and their relative valuations are at all time lows. Opportunity exists, but a reduced level of risk aversion on the part of investors, combined with superior earnings growth prospects for smaller companies, is needed to spark a significant broadening of the market. GROWTH OF $10,000 SINCE INCEPTION EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
AVERAGE ANNUAL TOTAL RETURNS AS OF DECEMBER 31, 1998 CSCF RUSSELL 2000 1 Year 4.69% (2.55%) Since Inception 20.64% 10.85% COLUMBIA SMALL CAP FUND RUSSELL 2000 10/1/96 $10,000 $10,000 12/31/96 $10,762 $10,520 12/31/97 $14,432 $12,872 12/31/98 $15,110 $12,544 Past Performance is not predictive of future results.
7 INVESTMENT REVIEW - -------------------------------------------------------------------------------- [LOGO] - ------------------------------------------ ------------------------------------------ -- COLUMBIA REAL ESTATE EQUITY FUND -- -------------------------------------- After posting two consecutive years of high double-digit returns, Columbia Real Estate Equity Fund returned -12.33% for the 12 months ended December 31, 1998. The Fund significantly outperformed its benchmark, the NAREIT Index, which returned -17.51% for the same period. REITs generally stumbled throughout 1998 as investors' perception about real estate shifted sharply from previous years. Fears of overbuilding and increasing vacancy rates, for instance, led investors to lower their expectations about future growth of REITs. Cash flows consequently slowed and trading multiples declined. TOP TEN HOLDINGS
% of Net Assets Equity Office Properties Trust 5.6 Simon Property Group, Inc. 5.5 Apartment Investment & Mgmt. Co. (Class A) 5.2 Public Storage, Inc. 4.5 New Plan Excel Realty Trust Inc. 3.9 Cabot Industrial Trust 3.7 Mack-Cali Realty Corp. 3.6 Spieker Properties, Inc. 3.6 Vornado Realty Trust 3.3 General Growth Properties, Inc. 3.3
As of December 31, 1998 During this difficult year, the more defensive REIT sectors -- industrial, retail, residential and health care -- received greater emphasis by investors, and our significant weightings in all but healthcare helped relative performance. The Fund also benefited from a below-market weighting in the lodging sector, which performed poorly all year. Although the office sector was also a laggard, we maintained our office holdings, as we expect this sector to improve over time, due to its prospects for internal growth and industry consolidation. Although growth rates of REITs are declining from their previously high double-digit pace to a high single-digit pace, this trend has already been discounted by investors in current valuations of REIT stocks. Therefore, we anticipate that continued but slow REIT growth in 1999 and projected dividend yields above 7% will provide a foundation for better performance in the REIT market going forward. EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
PORTFOLIO COMPOSITION Apartments 15.8% Community Centers 12.3% Industrial 30.3% Lodging 2.2% Manufactured Homes 2.6% Office 15.7% Shopping Malls 10.1% Other 5.4% Cash 5.6% as of December 31, 1998
As always, the Fund continues to seek capital appreciation and above-average current income by investing in the equity securities of companies in the real estate industry, providing investors with diversification opportunity in their portfolios. GROWTH OF $10,000 SINCE INCEPTION EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
AVERAGE ANNUAL TOTAL RETURNS AS OF DECEMBER 31, 1998 CREF NAREIT 1 Year (12.33%) (17.51%) Since Inception 13.01% 9.46% NATIONAL COLUMBIA ASSOCIATION REAL ESTATE OF REAL EQUITY FUND ESTATE 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 12/31/98 $17,984 $15,433 Past Performance is not predictive of future results.
8 INVESTMENT REVIEW - -------------------------------------------------------------------------------- [LOGO] - ------------------------------------------------ ------------------------------------------------ -- COLUMBIA BALANCED FUND -- ---------------------------- Columbia Balanced Fund returned 20.07% for the year ended December 31, 1998. Throughout this time, the Fund's asset allocation was almost evenly distributed between stocks and bonds, with 54.5% of the portfolio at year-end attributed to stocks, 44.0% to fixed income and 1.5% to cash. On the equity side of the portfolio, we focused on larger capitalization stocks with dependable earnings growth. Early in the year, we trimmed holdings in REITs and electric and gas utilities, as these sectors showed signs of trouble. Our continued focus on retail and consumer stocks benefited the Fund in the fourth quarter, as a series of three interest rate cuts from September 29 to November 17 renewed consumer confidence. TOP TEN STOCK HOLDINGS
% of Net Assets Microsoft Corp. 2.5 General Electric Co. 2.4 Pfizer, Inc. 2.2 Tyco International Ltd. 1.7 Bristol-Myers Squibb Co. 1.6 MCI Worldcom, Inc. 1.5 Warner-Lambert Co. 1.5 IBM Corp. 1.3 Freddie Mac 1.3 Safeway, Inc. 1.3
As of December 31, 1998 An emphasis on certain investment themes also played a large role in stock selection, including "The Aging of America," "Technology Age" and "Value-Added Consolidators." On the bond side of the portfolio, falling interest rates, supported by low inflation and moderating economic growth, contributed to price appreciation of bonds. However, prices on most bonds, including corporate and mortgage-backed securities such as those held by the Fund, did not go up as much as U.S. Treasuries. In the second half of the year, mortgage-backed bonds were increased along with corporates to take advantage of upside price potential. We believe the U.S. economy and corporate earnings remain vulnerable to a worldwide economic slowdown. Although we do not anticipate a recession in 1999, we will continue to emphasize stocks that offer dependable earnings growth in a slowing economy. A change in monetary policy appears to be on hold for the immediate future. We believe the Federal Reserve Board will wait for deteriorating global economic conditions before easing again, which should keep bond yields relatively stable in the meantime. EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
PORTFOLIO COMPOSITION Common Stocks 54.5% Fixed Income 44.0% Cash 1.5% as of December 31, 1998
GROWTH OF $10,000 SINCE INCEPTION EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
AVERAGE ANNUAL TOTAL RETURNS AS OF DECEMBER 31, 1998 CBF S&P 500 LEHMAN AGGREGATE 1 Year 20.07% 28.58% 8.69% 5 Years 14.82% 24.07% 7.27% Since Inception 14.35% 19.95% 8.05% 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 12/31/98 $26,608 $37,736 $17,594 Past Performance is not predictive of future results.
9 INVESTMENT REVIEW - -------------------------------------------------------------------------------- [LOGO] - ------------------------------------------- ------------------------------------------- -- U.S. GOVERNMENT SECURITIES FUND -- ------------------------------------- The U.S. Government Securities Fund returned 6.43% for the year ended December 31, 1998. This rate of return compares very favorably to inflation as measured by the Consumer Price Index, which increased only 1.6% for the year. For most of the year, interest rates across the yield curve declined. Worldwide economic turmoil sparked a flight to U.S. Treasuries, driving their yields down, and the Fund benefited from price appreciation. Low rates on Treasuries were further supported by a budget surplus, which reduces the Treasury's need to issue new bonds. Additionally, the Fund benefited from low inflation and moderating economic growth. EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
PORTFOLIO COMPOSITION Treasury/Agency Obligations 97.4% Cash 2.6% as of December 31, 1998
The flight to quality trend that occurred for most of the year reversed somewhat in the fourth quarter. A series of three Federal Reserve Board short-term interest rate cuts between September 29 and November 17 rekindled consumer and investor confidence. As investors moved money away from U.S. Treasuries into other asset categories, Treasury prices declined and short-term Treasury yields rose approximately 0.25% in the period. PORTFOLIO HIGHLIGHTS Current Yield 3.77%
Based on the 30 days ended Dec. 31, 1998 Weighted Averages Duration 1.83 years Maturity 2.15 years
As of December 31, 1998 Looking forward, we expect low inflation and moderating economic growth, which should provide a solid foundation for bond market returns. 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
AVERAGE ANNUAL TOTAL RETURNS AS OF DECEMBER 31, 1998 CUSG MERRILL 1-3 1 Year 6.43% 6.99% 5 Years 5.19% 5.99% 10 Years 6.90% 7.37% COLUMBIA MERRILL U.S. LYNCH CONSUMER GOVERNMENT 1-3 PRICE SECURITIES TREASURY INDEX FUND INDEX (INFLATION) 12/31/88 $10,000 $10,000 $10,000 12/31/89 $10,963 $11,087 $10,460 12/31/90 $11,981 $12,166 $11,098 12/31/91 $13,506 $13,587 $11,442 12/31/92 $14,290 $14,443 $11,774 12/31/93 $15,135 $15,224 $12,092 12/31/94 $15,130 $15,311 $12,418 12/31/95 $16,675 $16,995 $12,729 12/31/96 $17,317 $17,841 $13,149 12/31/97 $18,314 $19,030 $13,372 12/31/98 $19,493 $20,359 $13,586 Past Performance is not predictive of future results.
10 INVESTMENT REVIEW - -------------------------------------------------------------------------------- [LOGO] - -------------------------------------------------------------------------------- -- COLUMBIA FIXED INCOME SECURITIES FUND -- ----------------------------------------------------------- The Fund returned 7.44% for the year ended December 31, 1998. Worldwide economic turmoil led investors to U.S. Treasuries, sparking the so-called "flight to quality" during the second half of the year. As the demand for Treasuries increased, yields on 30-year Treasuries fell to historical levels. Falling interest rates, supported by low inflation and moderating economic growth, contributed to price appreciation of bonds. However, prices on most bonds, including corporate and mortgage-backed securities, such as those held by the Fund, did not go up as much as prices on U.S. Treasuries. EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
PORTFOLIO COMPOSITION Collateralized Mortgage Obligations 45.3% Corporate Bonds 30.2% Treasury/Agency Obligations 11.7% Mortgage Pass-Throughs 7.3% Asset Backed Securities 3.8% Cash 1.7%
Since bonds are selected for the Fund's portfolio based on interest rate trends and the liquidity of various instruments under prevailing market conditions, the Fund rotated away from mortgage-backed securities early in the year to protect against prepayment risk (when homeowners refinance their current mortgages to obtain lower rates). Later, mortgage-backed bonds, along with corporates, were increased to take advantage of upside price potential and maintain an attractive yield in the portfolio. Responding to fears of economic slowdown, the Federal Reserve Board eased short-term interest rates three times between September 29 and November 17. The bond market fully anticipated these reductions, so interest rates reached a low on October 5 and then rose for the remainder of the year. EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
PORTFOLIO QUALITY Treasury/Agency Obligations 53.2% Aaa 18.2% Aa 2.3% A 10.7% Baa 13.4% Ba 1.9% B 0.3% As of December 31, 1998 As rated by Moody's Investor Services
The Fed appears to be on hold for the immediate future. We believe they will wait for deteriorating global economic conditions before easing again, keeping rates relatively stable in the meantime. At present, we continue to emphasize high quality fixed income securities, and we are maintaining the Fund's average maturity and duration at 6.13 and 4.86 years, respectively, in line with the Lehman Aggregate Index, the Fund's benchmark. GROWTH OF $10,000 OVER 10 YEARS EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC AVERAGE ANNUAL TOTAL RETURNS AS OF DECEMBER 31, 1998 CFIS LEHMAN AGGREGATE 1 Year 7.44% 8.69% 5 Years 6.93% 7.27% 10 Years 9.21% 9.26% COLUMBIA FIXED CONSUMER INCOME PRICE SECURITIES LEHMAN INDEX FUND AGGREGATE (INFLATION) 12/31/1988 $10,000 $10,000 $10,000 12/31/1989 $11,435 $11,453 $10,460 12/31/1990 $12,384 $12,479 $11,098 12/31/1991 $14,470 $14,476 $11,442 12/31/1992 $15,626 $15,547 $11,774 12/31/1993 $17,262 $17,063 $12,092 12/31/1994 $16,682 $16,565 $12,418 12/31/1995 $19,836 $19,624 $12,729 12/31/1996 $20,505 $20,337 $13,149 12/31/1997 $22,465 $22,299 $13,372 12/31/1998 $24,135 $24,241 $13,586 Past Performance is not predictive of future results.
11 INVESTMENT REVIEW - -------------------------------------------------------------------------------- [LOGO] - -------------------------------------------- -------------------------------------------- -- COLUMBIA MUNICIPAL BOND FUND -- ---------------------------------- Columbia Municipal Bond Fund returned 5.58% for the year ended December 31, 1998. Throughout the period, supply of new municipal debt increased sub- stantially on a national level as municipalities refinanced existing debt to take advantage of lower interest rates. 1998 was the second largest year ever for new municipal issues. Cash flows into municipal bonds increased as investors sought a safe haven from the tremendous volatility in financial markets. EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
PORTFOLIO COMPOSITION State of Oregon General Obligations 7.3% Oregon General Obligation Bonds 15.6% Oregon Revenue Bonds 19.6% Oregon Other Bonds 2.9% Oregon Insured General Obligation Bonds 17.4% Other Bonds 6.6% Oregon Insured Revenue Bonds 22.2% Oregon Pre-Refunded Bonds 5.9% Cash 2.5% As of December 31, 1998
In contrast, Oregon bond offerings remained fairly light in 1998, while a generally healthy economy and increased income growth led to solid demand for Oregon municipal bonds. This strong demand and muted supply of Oregon municipal bonds kept their prices high compared to other states. In October, long-term municipal bond yields briefly reached their lowest levels in 10 years. Treasury yields, however, dropped more dramatically on a relative basis, and the yield on 30-year Treasuries nearly matched the yield on 30-year municipal bonds. Even though yields on these bonds rose somewhat later in the year, the difference between the two yields remains historically narrow. Since municipal bonds earn income free of federal and some state taxes, the yields available on municipals seem attractive compared to taxable alternatives. EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
PORTFOLIO QUALITY Aaa 56.0% Aa 21.0% A 16.0% Baa 1.6% Not Rated 5.4% as of December 31, 1998 as rated by Moody's Investors Services, Inc.
The Fund maintains an average maturity between 7 and 10 years, maintains a high average credit quality and is broadly diversified across issuers within Oregon. 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 AVERAGE ANNUAL TOTAL RETURNS AS OF DECEMBER 31, 1998 CMBF Lehman G.O. 1 Year 5.58% 6.67% 5 Years 5.25% 6.12% 10 Years 7.08% 7.92% Columbia Lehman Consumer Municipal General Price Bond Obligation Index Fund Bond (Inflation) 6/30/88 $10,000 $10,000 $10,000 6/30/89 $10,895 $11,011 $10,460 6/30/90 $11,646 $11,756 $11,098 6/30/91 $13,012 $13,097 $11,442 6/30/92 $13,852 $14,245 $11,774 6/30/93 $15,339 $15,916 $12,092 6/30/94 $14,621 $15,171 $12,418 6/30/95 $16,690 $17,623 $12,729 6/30/96 $17,319 $18,458 $13,149 6/30/97 $18,767 $20,083 $13,372 6/30/98 $19,814 $21,426 $13,586 Past Performance is not predictive of future results.
12 INVESTMENT REVIEW - -------------------------------------------------------------------------------- [LOGO] - ----------------------------------------------- ----------------------------------------------- -- COLUMBIA HIGH YIELD FUND -- ------------------------------ Columbia High Yield Fund returned 6.26% for the year ended December 31, 1998. After a strong first quarter, high yield bonds struggled in the second and third quarters, as the supply of high yield bonds exceeded demand, and renewed concerns about the Asian crisis prompted a worldwide flight to higher quality bonds. Because of the Fund's focus on higher quality "junk bonds," however, the Fund significantly outperformed its peers, as evidenced by the one-year return of -0.08% posted by the Lipper High Yield Bond Fund Index, the Fund's benchmark. SECTORS OF EMPHASIS
% of Net Assets Entertainment & Media 22.4% Services & Publishing 10.0% Manufacturing 9.6% Telecommunications 8.8% Health Care 7.4%
As of December 31, 1998 Responding to concerns of a worldwide economic slowdown, the Federal Reserve Board eased interest rates a total of three times between September 29 and November 17. The ensuing bond market rally helped to narrow the historically high yield spreads that had developed between Treasuries and other bonds throughout the third quarter. As yield spreads narrowed, the price of high yield bonds increased near year-end. In trading activity during the year, we increased holdings in cable TV companies, hospital operators and food and beverage containers. Holdings in the specialty retailing sector were reduced because of our concerns that consumer spending might slow in 1999. EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
PORTFOLIO QUALITY Ba 42.8% B 55.7% Baa 1.5% as of December 31, 1998 As rated by Moody's Investor Services, Inc.
Although they have begun to narrow, the yield spreads between U.S. Treasuries and high yield bonds are still wider than average. Since we do not anticipate a recession in the near term, we believe the high yield market offers good relative value compared to other bond issues. GROWTH OF $10,000 SINCE INCEPTION EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
AVERAGE ANNUAL TOTAL RETURNS AS OF DECEMBER 31,1998 CHYF SALOMON BB LIPPER HYBF 1 Year 6.26% 8.05% (0.08%) 5 years 9.11% 9.94% 7.63% Since Inception 8.80% 9.73% 8.17% COLUMBIA LIPPER HIGH HIGH YIELD YIELD BOND FUND FUND INDEX SALOMON BB 10/1/93 $10,000 $10,000 $10,000 12/31/93 $10,112 $10,498 $10,185 12/31/94 $10,019 $10,113 $10,048 12/31/95 $11,935 $11,870 $12,321 12/31/96 $13,060 $13,410 $13,429 12/31/97 $14,719 $15,177 $15,142 12/31/98 $15,639 $15,163 $16,361 Past Performance is not predictive of future results.
13 INVESTMENT REVIEW - -------------------------------------------------------------------------------- [LOGO] - -------------------------------------------- -------------------------------------------- -- COLUMBIA DAILY INCOME COMPANY -- ----------------------------------- Columbia Daily Income Company returned 5.09% for the year ended December 31, 1998. Although short-term interest rates remained fairly stable for much of the year, the Federal Reserve Board lowered short-term interest rates on three separate occasions between September 29 and November 17 by a total of 0.75%. Money market rates fell as a result, with the Fund's 7-day average yield declining from 5.21% on January 1, 1998 to 4.63% on December 31, 1998. PORTFOLIO HIGHLIGHTS Current Yield 4.64% Compound Yield 4.74% Based on the 7 days ended December 31, 1998 Weighted Average Maturity 39.0 days As of December 31, 1998
The year was characterized by stronger than expected economic growth and gradually declining inflation. 1998's 4.1% Gross Domestic Product growth, for instance, compares to a slightly less robust pace of 3.8% for 1997. The 1.6% rate of inflation for 1998, measured by the Consumer Price Index, trended modestly lower, as the 1997 CPI was measured at 1.7%. We anticipate that the economy will slow in 1999, but will still grow at a comfortable level. With this in mind, we believe the Fed will remain on the sidelines for awhile, opting not to adjust monetary policy unless global economic conditions deteriorate. THE YEAR WAS CHARACTERIZED BY STRONGER THAN EXPECTED ECONOMIC GROWTH AND GRADUALLY DECLINING INFLATION. [LOGO] As always, the Fund invests only in high quality, short-term debt instruments with an average maturity of 30 to 50 days, providing a very liquid, low risk investment. The Fund seeks to provide the highest level of income available that is consistent with the maintenance of liquidity and preservation of capital by investing in various money market instruments. These include commercial paper, U.S. Treasury bills, U.S. Government agency discount notes and certificates of deposit. GROWTH OF $10,000 OVER 10 YEARS EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
AVERAGE ANNUAL TOTAL RETURNS AS OF DECEMBER 31, 1998 CDIC CPI 1 Year 5.09% 1.60% 5 Years 4.87% 2.36% 10 Years 5.23% 3.11% COLUMBIA CONSUMER DAILY PRICE INCOME INDEX COMPANY (INFLATION) 12/31/88 $10,000 $10,000 12/31/89 $10,889 $10,460 12/31/90 $11,743 $11,098 12/31/91 $12,407 $11,442 12/31/92 $12,811 $11,774 12/31/93 $13,132 $12,092 12/31/94 $13,615 $12,418 12/31/95 $14,363 $12,729 12/31/96 $15,075 $13,149 12/31/97 $15,846 $13,372 12/31/98 $16,653 $13,586 Past Performance is not predictive of future results.
14 FINANCIAL HIGHLIGHTS ----------------------------------------------------------------- FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH YEAR [LOGO] - ---- ---- -- COLUMBIA COMMON STOCK FUND, INC. -- --------------------------------------
1998 1997 1996 1995 1994 ----- ----- ----- ----- ----- - ---------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF YEAR $22.02 $19.26 $18.59 $15.16 $15.29 - ---------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income................ 0.09 0.29 0.25 0.26 0.27 Net gains on securities (both realized and unrealized)............ 5.68 4.58 3.61 4.38 0.04 - ---------------------------------------------------------------------------------------------- Total from investment operations.... 5.77 4.87 3.86 4.64 0.31 - ---------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Dividends from net investment income.............................. (0.13 ) (0.27 ) (0.23 ) (0.26 ) (0.25 ) Distributions from capital gains..... (3.26 ) (1.84 ) (2.96 ) (0.95 ) (0.19 ) - ---------------------------------------------------------------------------------------------- Total distributions................. (3.39 ) (2.11 ) (3.19 ) (1.21 ) (0.44 ) - ---------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF YEAR $24.40 $22.02 $19.26 $18.59 $15.16 - ---------------------------------------------------------------------------------------------- TOTAL RETURN........................... 26.28% 25.37% 20.71% 30.84% 2.06% RATIOS/SUPPLEMENTAL DATA Net assets, end of year (in thousands)............................ $797,147 $783,906 $536,760 $358,523 $124,263 Ratio of expenses to average net assets................................ 0.80% 0.77% 0.76% 0.80% 0.84% Ratio of net investment income to average net assets.................... 0.56% 1.37% 1.32% 1.68% 1.82% Portfolio turnover rate................ 140.74% 90.23% 111.39% 75.36% 64.21%
- -------------------------------------------------------------------------------- See Notes to Financial Statements. 15 FINANCIAL HIGHLIGHTS ----------------------------------------------------------------- FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH YEAR [LOGO] - ---- ---- -- COLUMBIA GROWTH FUND, INC. -- --------------------------------
1998 1997 1996 1995 1994 ----- ----- ----- ----- ----- - ---------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF YEAR $34.34 $30.74 $29.84 $24.84 $26.38 - ---------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income................ 0.03 0.19 0.19 0.31 0.29 Net gains or (losses) on securities (both realized and unrealized)...... 10.39 7.90 6.04 7.86 (0.46 ) - ---------------------------------------------------------------------------------------------------- Total from investment operations.... 10.42 8.09 6.23 8.17 (0.17 ) - ---------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Dividends from net investment income.............................. (0.08 ) (0.17 ) (0.17 ) (0.29 ) (0.26 ) Distributions from capital gains..... (2.17 ) (4.32 ) (5.16 ) (2.88 ) (1.11 ) - ---------------------------------------------------------------------------------------------------- Total distributions................. (2.25 ) (4.49 ) (5.33 ) (3.17 ) (1.37 ) - ---------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF YEAR $42.51 $34.34 $30.74 $29.84 $24.84 - ---------------------------------------------------------------------------------------------------- TOTAL RETURN........................... 30.34% 26.32% 20.80% 32.98% -0.63% RATIOS/SUPPLEMENTAL DATA Net assets, end of year (in thousands)............................ $1,753,024 $1,324,918 $1,064,100 $848,731 $591,694 Ratio of expenses to average net assets................................ 0.68% 0.71% 0.71% 0.75% 0.81% Ratio of net investment income to average net assets.................... 0.21% 0.55% 0.63% 1.14% 1.12% Portfolio turnover rate................ 105.25% 95.67% 75.49% 94.73% 79.28%
- -------------------------------------------------------------------------------- See Notes to Financial Statements. 16 FINANCIAL HIGHLIGHTS ----------------------------------------------------------------- FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH YEAR [LOGO] - ---- ---- -- COLUMBIA INTERNATIONAL STOCK FUND, INC. -- ---------------------------------------------
1998 1997 1996 1995 1994 ----- ----- ----- ----- ----- - ---------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF YEAR $13.70 $13.86 $13.07 $12.43 $12.96 - ---------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)......... 0.00 * 0.03 0.03 0.02 (0.02 ) Net gains or (losses) on securities (both realized and unrealized) and foreign currency transactions....... 1.76 1.56 2.13 0.62 (0.30 ) - ---------------------------------------------------------------------------------------------- Total from investment operations.... 1.76 1.59 2.16 0.64 (0.32 ) - ---------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Dividends from net investment income.............................. -- -- (0.23 ) -- -- Distributions from capital gains..... (0.01 ) (1.75 ) (1.14 ) -- (0.21 ) - ---------------------------------------------------------------------------------------------- Total distributions................. (0.01 ) (1.75 ) (1.37 ) -- (0.21 ) - ---------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF YEAR $15.45 $13.70 $13.86 $13.07 $12.43 - ---------------------------------------------------------------------------------------------- TOTAL RETURN........................... 12.83% 11.47% 16.59% 5.15% -2.47% RATIOS/SUPPLEMENTAL DATA Net assets, end of year (in thousands)............................ $134,193 $146,281 $125,510 $100,873 $118,484 Ratio of expenses to average net assets................................ 1.56% 1.62% 1.54% 1.54% 1.52% Ratio of net investment income (loss) to average net assets................. (0.02)% 0.19% 0.22% 0.15% (0.21)% Portfolio turnover rate................ 74.15% 121.53% 129.40% 156.09% 138.79%
* Amount represents less than $0.01 per share. - -------------------------------------------------------------------------------- See Notes to Financial Statements. 17 FINANCIAL HIGHLIGHTS ----------------------------------------------------------------- FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH YEAR [LOGO] - ---- ---- -- COLUMBIA SPECIAL FUND, INC. -- ---------------------------------
1998 1997 1996 1995 1994 ----- ----- ----- ----- ----- - ---------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF YEAR $20.26 $19.85 $21.44 $18.69 $19.51 - ---------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)......... (0.03 ) 0.01 (0.06 ) 0.03 0.08 Net gains on securities (both realized and unrealized)............ 3.40 2.50 2.85 5.45 0.36 - ---------------------------------------------------------------------------------------------------- Total from investment operations.... 3.37 2.51 2.79 5.48 0.44 - ---------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Dividends from net investment income.............................. (0.01 ) -- -- (0.02 ) (0.07 ) Distributions from capital gains..... 0.00 * (2.10 ) (4.38 ) (2.71 ) (1.19 ) - ---------------------------------------------------------------------------------------------------- Total distributions................. (0.01 ) (2.10 ) (4.38 ) (2.73 ) (1.26 ) - ---------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF YEAR $23.62 $20.26 $19.85 $21.44 $18.69 - ---------------------------------------------------------------------------------------------------- TOTAL RETURN........................... 16.64% 12.64% 13.07% 29.53% 2.29% RATIOS/SUPPLEMENTAL DATA Net assets, end of year (in thousands)............................ $969,359 $1,249,718 $1,585,284 $1,384,415 $889,526 Ratio of expenses to average net assets................................ 1.03% 0.98% 0.94% 0.98% 1.05% Ratio of net investment income (loss) to average net assets................. (0.09)% 0.04% (0.29)% 0.16% 0.40% Portfolio turnover rate................ 135.29% 166.46% 150.07% 182.99% 178.91%
* Amount represents less than $0.01 per share - -------------------------------------------------------------------------------- See Notes to Financial Statements. 18 FINANCIAL HIGHLIGHTS ----------------------------------------------------------------- FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD [LOGO] - ---- ---- -- COLUMBIA SMALL CAP FUND, INC. -- -----------------------------------
1998 1997 1996(1) ----- ----- ------- - ------------------------------------------------------------------------ NET ASSET VALUE, BEGINNING OF PERIOD $16.65 $12.99 $12.00 - ------------------------------------------------------------------------ INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)......... (0.09 ) (0.08 ) 0.00 * Net gains on securities (both realized and unrealized)............ 0.87 4.51 0.99 - ------------------------------------------------------------------------ Total from investment operations.... 0.78 4.43 0.99 - ------------------------------------------------------------------------ LESS DISTRIBUTIONS: Distributions from capital gains..... 0.00 * (0.77 ) -- - ------------------------------------------------------------------------ Total distributions................. -- (0.77 ) -- - ------------------------------------------------------------------------ NET ASSET VALUE, END OF PERIOD $17.43 $16.65 $12.99 - ------------------------------------------------------------------------ TOTAL RETURN........................... 4.69% 34.10% 7.62% (2) RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in thousands)............................ $160,472 $96,431 $21,061 Ratio of expenses to average net assets................................ 1.34% 1.46% 1.61% Ratio of net investment loss to average net assets............................ (0.68)% (0.81)% 0.00% Portfolio turnover rate................ 157.73% 171.75% 32.57%
* Amount represents less than $0.01 per share (1) From inception of operations on September 11, 1996. Ratios and portfolio turnover rates are annualized. (2) Not annualized. - -------------------------------------------------------------------------------- See Notes to Financial Statements. 19 FINANCIAL HIGHLIGHTS ----------------------------------------------------------------- FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD [LOGO] - ---- ---- -- COLUMBIA REAL ESTATE EQUITY FUND, INC. -- --------------------------------------------
1998 1997 1996 1995 1994(1) ----- ----- ----- ----- ------- - ------------------------------------------------------------------------------------------ NET ASSET VALUE, BEGINNING OF PERIOD $18.80 $16.16 $12.71 $11.72 $12.00 - ------------------------------------------------------------------------------------------ INCOME FROM INVESTMENT OPERATIONS: Net investment income................ 0.75 0.79 0.77 0.78 0.49 Net gains or (losses) on securities (both realized and unrealized)...... (3.04 ) 3.15 3.94 1.12 (0.27 ) - ------------------------------------------------------------------------------------------ Total from investment operations.... (2.29 ) 3.94 4.71 1.90 0.22 - ------------------------------------------------------------------------------------------ LESS DISTRIBUTIONS: Dividends from net investment income.............................. (0.66 ) (0.62 ) (0.52 ) (0.49 ) (0.32 ) Distributions from capital gains..... -- (0.51 ) (0.53 ) (0.14 ) -- Returns of capital................... (0.09 ) (0.17 ) (0.21 ) (0.28 ) (0.18 ) - ------------------------------------------------------------------------------------------ Total distributions................. (0.75 ) (1.30 ) (1.26 ) (0.91 ) (0.50 ) - ------------------------------------------------------------------------------------------ NET ASSET VALUE, END OF PERIOD $15.76 $18.80 $16.16 $12.71 $11.72 - ------------------------------------------------------------------------------------------ TOTAL RETURN........................... -12.33% 24.74% 38.30% 16.86% 1.76% (2) RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in thousands)............................ $164,172 $151,554 $68,073 $21,587 $17,402 Ratio of expenses to average net assets................................ 1.01% 1.02% 1.06% 1.18% 1.14% Ratio of net investment income to average net assets.................... 4.60% 4.87% 6.23% 6.71% 6.28% Portfolio turnover rate................ 5.62% 33.55% 45.82% 53.91% 7.61%
(1) From inception of operations on March 16, 1994. Ratios and portfolio turnover rates are annualized. (2) Not annualized. - -------------------------------------------------------------------------------- See Notes to Financial Statements. 20 FINANCIAL HIGHLIGHTS ----------------------------------------------------------------- FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH YEAR [LOGO] - ---- ---- -- COLUMBIA BALANCED FUND, INC. -- ----------------------------------
1998 1997 1996 1995 1994 ----- ----- ----- ----- ----- - ---------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF YEAR $21.42 $20.32 $20.08 $17.28 $17.91 - ---------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income................ 0.72 0.84 0.76 0.73 0.65 Net gains or (losses) on securities (both realized and unrealized)...... 3.52 2.92 1.58 3.54 (0.64 ) - ---------------------------------------------------------------------------------------------- Total from investment operations.... 4.24 3.76 2.34 4.27 0.01 - ---------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Dividends from net investment income.............................. (0.73 ) (0.83 ) (0.76 ) (0.73 ) (0.64 ) Distributions from capital gains..... (1.76 ) (1.83 ) (1.34 ) (0.74 ) -- - ---------------------------------------------------------------------------------------------- Total distributions................. (2.49 ) (2.66 ) (2.10 ) (1.47 ) (0.64 ) - ---------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF YEAR $23.17 $21.42 $20.32 $20.08 $17.28 - ---------------------------------------------------------------------------------------------- TOTAL RETURN........................... 20.07% 18.74% 11.78% 25.08% 0.10% RATIOS/SUPPLEMENTAL DATA Net assets, end of year (in thousands)............................ $975,381 $792,378 $672,593 $486,767 $249,670 Ratio of expenses to average net assets................................ 0.67% 0.68% 0.66% 0.69% 0.72% Ratio of net investment income to average net assets.................... 3.22% 3.83% 3.82% 4.05% 3.82% Portfolio turnover rate................ 127.57% 148.91% 133.21% 108.04% 98.48%
- -------------------------------------------------------------------------------- See Notes to Financial Statements. 21 FINANCIAL HIGHLIGHTS ----------------------------------------------------------------- FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH YEAR [LOGO] - ---- ---- -- COLUMBIA U.S. GOVERNMENT SECURITIES FUND, INC. -- ----------------------------------------------------
1998 1997 1996 1995 1994 ----- ----- ----- ----- ----- - ----------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF YEAR $8.29 $8.24 $8.34 $7.99 $8.36 - ----------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income................ 0.38 0.41 0.41 0.45 0.37 Net gains or (losses) on securities (both realized and unrealized)...... 0.14 0.05 (0.10 ) 0.35 (0.37 ) - ----------------------------------------------------------------------------------------- Total from investment operations.... 0.52 0.46 0.31 0.80 -- - ----------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Dividends from net investment income.............................. (0.38 ) (0.41 ) (0.41 ) (0.45 ) (0.37 ) Distributions from capital gains..... (0.04 ) -- -- -- -- - ----------------------------------------------------------------------------------------- Total distributions................. (0.42 ) (0.41 ) (0.41 ) (0.45 ) (0.37 ) - ----------------------------------------------------------------------------------------- NET ASSET VALUE, END OF YEAR $8.39 $8.29 $8.24 $8.34 $7.99 - ----------------------------------------------------------------------------------------- TOTAL RETURN........................... 6.43% 5.76% 3.85% 10.21% -0.03% RATIOS/SUPPLEMENTAL DATA Net assets, end of year (in thousands)............................ $40,578 $37,837 $40,776 $41,842 $33,512 Ratio of expenses to average net assets................................ 0.89% 0.87% 0.80% 0.79% 0.81% Ratio of net investment income to average net assets.................... 4.55% 4.99% 4.99% 5.45% 4.51% Portfolio turnover rate................ 182.46% 184.43% 179.38% 253.17% 253.80%
- -------------------------------------------------------------------------------- See Notes to Financial Statements. 22 FINANCIAL HIGHLIGHTS ----------------------------------------------------------------- FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH YEAR [LOGO] - ---- ---- -- COLUMBIA FIXED INCOME SECURITIES FUND, INC. -- -------------------------------------------------
1998 1997 1996 1995 1994 ----- ----- ----- ----- ----- - ---------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF YEAR $13.41 $13.08 $13.51 $12.16 $13.44 - ---------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income................ 0.83 0.85 0.85 0.88 0.83 Net gains or (losses) on securities (both realized and unrealized)...... 0.14 0.36 (0.43 ) 1.35 (1.28 ) - ---------------------------------------------------------------------------------------------- Total from investment operations.... 0.97 1.21 0.42 2.23 (0.45 ) - ---------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Dividends from net investment income.............................. (0.83 ) (0.85 ) (0.85 ) (0.88 ) (0.83 ) Distributions from capital gains..... (0.13 ) (0.03 ) -- -- -- - ---------------------------------------------------------------------------------------------- Total distributions................. (0.96 ) (0.88 ) (0.85 ) (0.88 ) (0.83 ) - ---------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF YEAR $13.42 $13.41 $13.08 $13.51 $12.16 - ---------------------------------------------------------------------------------------------- TOTAL RETURN........................... 7.44% 9.56% 3.37% 18.91% -3.36% RATIOS/SUPPLEMENTAL DATA Net assets, end of year (in thousands)............................ $422,330 $381,333 $356,421 $316,259 $252,090 Ratio of expenses to average net assets................................ 0.65% 0.66% 0.64% 0.65% 0.66% Ratio of net investment income to average net assets.................... 6.15% 6.43% 6.53% 6.80% 6.53% Portfolio turnover rate................ 107.06% 196.28% 178.25% 137.41% 139.81%
- -------------------------------------------------------------------------------- See Notes to Financial Statements. 23 FINANCIAL HIGHLIGHTS ----------------------------------------------------------------- FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH YEAR [LOGO] - ---- ---- -- COLUMBIA MUNICIPAL BOND FUND, INC. -- ----------------------------------------
1998 1997 1996 1995 1994 ----- ----- ----- ----- ----- - ---------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF YEAR $12.47 $12.15 $12.37 $11.48 $12.71 - ---------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income................ 0.58 0.60 0.61 0.63 0.64 Net gains or (losses) on securities (both realized and unrealized)...... 0.10 0.39 (0.16 ) 0.96 (1.23 ) - ---------------------------------------------------------------------------------------------- Total from investment operations.... 0.68 0.99 0.45 1.59 (0.59 ) - ---------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Dividends from net investment income.............................. (0.58 ) (0.60 ) (0.61 ) (0.63 ) (0.64 ) Distributions from capital gains..... (0.11 ) (0.07 ) (0.06 ) (0.07 ) -- - ---------------------------------------------------------------------------------------------- Total distributions................. (0.69 ) (0.67 ) (0.67 ) (0.70 ) (0.64 ) - ---------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF YEAR $12.46 $12.47 $12.15 $12.37 $11.48 - ---------------------------------------------------------------------------------------------- TOTAL RETURN........................... 5.58% 8.36% 3.77% 14.15% -4.68% RATIOS/SUPPLEMENTAL DATA Net assets, end of year (in thousands)............................ $462,809 $409,148 $375,667 $383,796 $339,817 Ratio of expenses to average net assets................................ 0.58% 0.57% 0.56% 0.57% 0.57% Ratio of net investment income to average net assets.................... 4.60% 4.87% 5.00% 5.22% 5.36% Portfolio turnover rate................ 16.50% 16.88% 19.03% 21.45% 19.40%
- -------------------------------------------------------------------------------- See Notes to Financial Statements. 24 FINANCIAL HIGHLIGHTS ----------------------------------------------------------------- FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH YEAR [LOGO] - ---- ---- -- COLUMBIA HIGH YIELD FUND, INC. -- ------------------------------------
1998 1997 1996 1995 1994 ----- ----- ----- ----- ----- - ---------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF YEAR $10.04 $9.94 $9.88 $9.04 $9.94 - ---------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income................ 0.76 0.81 0.81 0.82 0.80 Net gains or (losses) on securities (both realized and unrealized)...... (0.15 ) 0.40 0.07 0.84 (0.90 ) - ---------------------------------------------------------------------------------------- Total from investment operations.... 0.61 1.21 0.88 1.66 (0.10 ) - ---------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Dividends from net investment income.............................. (0.76 ) (0.81 ) (0.81 ) (0.82 ) (0.80 ) Distributions from capital gains..... (0.05 ) (0.30 ) (0.01 ) -- -- - ---------------------------------------------------------------------------------------- Total distributions................. (0.81 ) (1.11 ) (0.82 ) (0.82 ) (0.80 ) - ---------------------------------------------------------------------------------------- NET ASSET VALUE, END OF YEAR $9.84 $10.04 $9.94 $9.88 $9.04 - ---------------------------------------------------------------------------------------- TOTAL RETURN........................... 6.26% 12.70% 9.43% 19.12% -0.92% RATIOS/SUPPLEMENTAL DATA Net assets, end of year (in thousands)............................ $57,524 $39,278 $28,818 $23,471 $12,834 Ratio of expenses to average net assets................................ 0.95% 1.00% 0.93% 1.00% 1.00% Ratio of net investment income to average net assets.................... 7.52% 8.05% 8.29% 8.62% 8.69% Portfolio turnover rate................ 79.22% 124.23% 62.27% 51.60% 36.67% Ratio of expenses to average net assets before voluntary reimbursement........ 0.95% 1.02% 1.00% 1.06% 1.19%
- -------------------------------------------------------------------------------- See Notes to Financial Statements. 25 FINANCIAL HIGHLIGHTS ----------------------------------------------------------------- FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH YEAR [LOGO] - ---- ---- -- COLUMBIA DAILY INCOME COMPANY -- -----------------------------------
1998 1997 1996 1995 1994 ----- ----- ----- ----- ----- - --------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF YEAR $1.00 $1.00 $1.00 $1.00 $1.00 - --------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income................. 0.050 0.050 0.048 0.053 0.036 - --------------------------------------------------------------------------------------------------- Total from investment operations..... 0.050 0.050 0.048 0.053 0.036 - --------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: Dividends from net investment income............................... (0.050 ) (0.050 ) (0.048 ) (0.053 ) (0.036 ) - --------------------------------------------------------------------------------------------------- Total distributions.................. (0.050 ) (0.050 ) (0.048 ) (0.053 ) (0.036 ) - --------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF YEAR $1.00 $1.00 $1.00 $1.00 $1.00 - --------------------------------------------------------------------------------------------------- TOTAL RETURN............................ 5.09% 5.11% 4.96% 5.49% 3.68% RATIOS/SUPPLEMENTAL DATA Net assets, end of year (in thousands)............................. $1,109,141 $1,169,096 $889,800 $800,656 $730,067 Ratio of expenses to average net assets................................. 0.62% 0.63% 0.62% 0.64% 0.70% Ratio of net investment income to average net assets..................... 4.97% 4.99% 4.84% 5.34% 3.68%
- -------------------------------------------------------------------------------- See Notes to Financial Statements. 26 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - --------------------- --------------------- -- COLUMBIA COMMON STOCK FUND, INC. -- ------
SHARES OR PRINCIPAL DECEMBER 31, 1998 AMOUNT VALUE(1) ----------- ------------- COMMON STOCKS (98.7%) BASIC INDUSTRIES & MANUFACTURING (7.9%) BUILDING & FORESTRY PRODUCTS (0.3%) CHAMPION INTERNATIONAL CORP...... 60,500 $ 2,450,250 ------------- MACHINERY CAPITAL SPENDING (7.6%) EMERSON ELECTRIC CO.............. 54,500 3,409,656 GENERAL ELECTRIC CO.............. 315,000 32,149,688 TYCO INTERNATIONAL LTD........... 326,908 24,661,122 ------------- 60,220,466 ------------- TOTAL BASIC INDUSTRIES & MANUFACTURING..................... 62,670,716 ------------- BUSINESS & CONSUMER SERVICES (5.2%) MEDIA & ENTERTAINMENT (4.1%) *CLEAR CHANNEL COMMUNICATIONS, INC............................. 269,300 14,676,850 COMCAST CORP. (CLASS A SPECIAL)........................ 107,500 6,308,906 *INFINITY BROADCASTING CORP. (CLASS A)....................... 302,400 8,278,200 *TELE-COMMUNICATIONS, INC. TCI VENTURES GROUP (SERIES A)....... 152,700 3,597,994 ------------- 32,861,950 ------------- POLLUTION CONTROL (1.1%) WASTE MANAGEMENT, INC............ 186,305 8,686,470 ------------- TOTAL BUSINESS & CONSUMER SERVICES.......................... 41,548,420 ------------- CONSUMER CYCLICAL (11.0%) CONSUMER DURABLE (0.9%) FEDERAL-MOGUL CORP............... 114,000 6,783,000 ------------- CONSUMER NON-DURABLE (10.1%) *BED, BATH & BEYOND, INC.......... 147,900 5,047,088 CARNIVAL CORP.................... 199,300 9,566,400 *CONSOLIDATED STORES CORP......... 427,900 8,638,231 DAYTON-HUDSON CORP............... 356,000 19,313,000 *FEDERATED DEPARTMENT STORES, INC............................. 211,900 9,230,894 HOME DEPOT, INC. (THE)........... 116,500 7,128,344 LOWE'S COS., INC................. 325,500 16,661,531 *OFFICE DEPOT, INC................ 135,500 5,005,031 ------------- 80,590,519 ------------- TOTAL CONSUMER CYCLICAL............ 87,373,519 ------------- SHARES OR PRINCIPAL AMOUNT VALUE(1) ----------- ------------- CONSUMER STAPLES (25.2%) FOOD & HOUSEHOLD PRODUCTS (8.6%) AVON PRODUCTS, INC............... 246,500 $ 10,907,625 GILLETTE CO...................... 93,000 4,493,063 *MEYER (FRED), INC................ 182,300 10,983,575 PHILLIP MORRIS COS., INC......... 360,400 19,281,400 *SAFEWAY, INC..................... 312,000 19,012,500 WALGREEN CO...................... 69,700 4,081,806 ------------- 68,759,969 ------------- HEALTH (16.6%) AMERICAN HOME PRODUCTS CORP...... 255,900 14,410,369 *BOSTON SCIENTIFIC CORP........... 376,000 10,081,500 BRISTOL-MYERS SQUIBB CO.......... 159,200 21,302,950 CARDINAL HEALTH, INC............. 154,550 11,726,481 GUIDANT CORP..................... 87,300 9,624,825 PFIZER, INC...................... 225,100 28,235,981 SCHERING-PLOUGH CORP............. 278,000 15,359,500 WARNER-LAMBERT CO................ 287,900 21,646,481 ------------- 132,388,087 ------------- TOTAL CONSUMER STAPLES............. 201,148,056 ------------- ENERGY (5.4%) AMOCO CORP....................... 113,400 6,846,525 *CONOCO, INC. (CLASS A)........... 247,300 5,162,387 EXXON CORP....................... 189,500 13,857,188 MOBIL CORP....................... 136,600 11,901,275 ROYAL DUTCH PETROLEUM CO......... 61,400 2,939,525 TEXACO, INC...................... 48,800 2,580,300 ------------- TOTAL ENERGY....................... 43,287,200 ------------- FINANCIAL (14.3%) ALLSTATE CORP.................... 308,800 11,927,400 AMERICAN EXPRESS CO.............. 100,900 10,317,025 AMERICAN GENERAL CORP............ 131,200 10,233,600 BANK ONE CORP.................... 105,228 5,373,205 BANKAMERICA CORP................. 181,300 10,900,663 CHASE MANHATTAN CORP............. 100,900 6,867,506 CITIGROUP, INC................... 160,500 7,944,750 FANNIE MAE....................... 260,000 19,240,000 FIRST UNION CORP................. 201,700 12,265,881 MELLON BANK CORP................. 132,300 9,095,625 TRAVELERS PROPERTY CASUALTY CORP. (CLASS A)....................... 97,400 3,019,400 U.S. BANCORP..................... 201,132 7,140,186 ------------- TOTAL FINANCIAL.................... 114,325,241 -------------
27 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - --------------------- --------------------- -- COLUMBIA COMMON STOCK FUND, INC. -- ------
SHARES OR PRINCIPAL AMOUNT VALUE(1) ----------- ------------- COMMON STOCKS (CONTINUED) TECHNOLOGY (21.4%) *AMERICA ONLINE, INC.............. 107,000 $ 15,488,250 *ASCEND COMMUNICATIONS, INC....... 115,900 7,620,425 AUTOMATIC DATA PROCESSING, INC... 142,000 11,386,625 *CISCO SYSTEMS, INC............... 121,800 11,304,563 *COMPUTER SCIENCES CORP........... 219,200 14,124,700 *DELL COMPUTER CORP............... 104,200 7,626,137 *GATEWAY 2000, INC................ 176,800 9,049,950 INTEL CORP....................... 120,400 14,274,925 INTERNATIONAL BUSINESS MACHINES CORP............................ 113,600 20,987,600 LUCENT TECHNOLOGIES, INC......... 76,200 8,382,000 *MICROSOFT CORP................... 263,000 36,474,813 *TELLABS, INC..................... 158,800 10,887,725 *XILINX, INC...................... 39,500 2,572,437 ------------- TOTAL TECHNOLOGY................... 170,180,150 ------------- UTILITIES (8.3%) COMMUNICATIONS (7.6%) ALLTEL CORP...................... 120,700 7,219,369 AT&T CORP........................ 43,000 3,235,750 BELL ATLANTIC CORP............... 138,100 7,845,806 *MCI WORLDCOM, INC................ 287,702 20,642,619 SBC COMMUNICATIONS, INC.......... 274,600 14,725,425 *TELE-COMMUNICATIONS, INC. TCI GROUP (SERIES A)................ 125,000 6,914,062 ------------- 60,583,031 ------------- ELECTRIC & GAS (0.7%) IDACORP, INC..................... 152,900 5,533,069 ------------- TOTAL UTILITIES.................... 66,116,100 ------------- TOTAL COMMON STOCKS (COST $558,815,836)............... 786,649,402 ------------- SHARES OR PRINCIPAL AMOUNT VALUE(1) ----------- ------------- REPURCHASE AGREEMENT (0.3%) J.P. MORGAN SECURITIES, INC. 4.970% DATED 12/31/1998, DUE 01/04/1999 IN THE AMOUNT OF $2,189,048. COLLATERALIZED BY U.S. TREASURY BILLS DUE 06/24/1999, U.S. TREASURY BONDS 6.500% DUE 11/15/2026, U.S. TREASURY NOTES 5.375% DUE 06/30/2000 TO 07/31/2000. (COST $2,188,750)................. $2,188,750 $ 2,188,750 ------------- TOTAL INVESTMENTS (99.0%) (COST $561,004,586)................... 788,838,152 RECEIVABLES LESS LIABILITIES (1.0%).... 8,308,413 ------------- NET ASSETS (100.0%).................... $ 797,146,565 ------------- -------------
(1) See Note 1 of Notes to Financial Statements. * Non-income producing. See Notes to Financial Statements. 28 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ------------------------- ------------------------- -- COLUMBIA GROWTH FUND, INC. -- ------
SHARES OR PRINCIPAL DECEMBER 31, 1998 AMOUNT VALUE(1) ------------ --------------- COMMON STOCKS (98.7%) BASIC INDUSTRIES & MANUFACTURING (6.7%) MACHINERY CAPITAL SPENDING EMERSON ELECTRIC CO.............. 136,000 $ 8,508,500 GENERAL ELECTRIC CO.............. 547,800 55,909,837 TYCO INTERNATIONAL LTD........... 700,000 52,806,250 --------------- TOTAL BASIC INDUSTRIES & MANUFACTURING..................... 117,224,587 --------------- BUSINESS & CONSUMER SERVICES (8.7%) SERVICES & PUBLISHING (3.6%) *CERIDIAN CORP.................... 275,000 19,198,438 *FISERV, INC...................... 400,750 20,613,578 SERVICE CORPORATION INT'L........ 287,600 10,946,775 SERVICEMASTER CO................. 573,750 12,658,359 --------------- 63,417,150 --------------- MEDIA & ENTERTAINMENT (3.9%) *CHANCELLOR MEDIA CORP............ 225,600 10,800,600 *CLEAR CHANNEL COMMUNICATIONS, INC............................. 394,000 21,473,000 COMCAST CORP. (CLASS A SPECIAL)........................ 201,800 11,843,137 *INFINITY BROADCASTING CORP. (CLASS A)....................... 650,300 17,801,963 *JACOR COMMUNICATIONS, INC........ 100,000 6,437,500 --------------- 68,356,200 --------------- POLLUTION CONTROL (1.2%) WASTE MANAGEMENT, INC............ 449,275 20,947,447 --------------- TOTAL BUSINESS & CONSUMER SERVICES.......................... 152,720,797 --------------- CONSUMER CYCLICAL (15.3%) CONSUMER DURABLE (1.3%) FEDERAL-MOGUL CORP............... 400,000 23,800,000 --------------- CONSUMER NON-DURABLE (14.0%) *ABERCROMBIE & FITCH CO........... 830,834 58,781,506 *BED, BATH & BEYOND, INC.......... 330,800 11,288,550 CARNIVAL CORP.................... 455,000 21,840,000 *CONSOLIDATED STORES CORP......... 929,800 18,770,338 DAYTON-HUDSON CORP............... 623,100 33,803,175 *FEDERATED DEPARTMENT STORES, INC............................. 500,000 21,781,250 LOWE'S COS., INC................. 600,000 30,712,500 ROYAL CARIBBEAN CRUISES LTD...... 400,000 14,800,000 TANDY CORP....................... 317,000 13,056,437 SHARES OR PRINCIPAL AMOUNT VALUE(1) ------------ --------------- WAL-MART STORES, INC............. 100,000 $ 8,143,750 WARNACO GROUP, INC. (CLASS A).... 492,800 12,443,200 --------------- 245,420,706 --------------- TOTAL CONSUMER CYCLICAL............ 269,220,706 --------------- CONSUMER STAPLES (28.1%) FOOD & HOUSEHOLD PRODUCTS (8.1%) AVON PRODUCTS, INC............... 523,800 23,178,150 GILLETTE CO...................... 293,900 14,199,044 *MEYER (FRED), INC................ 400,400 24,124,100 RITE AID CORP.................... 577,950 28,644,647 *SAFEWAY, INC..................... 655,400 39,938,437 WALGREEN CO...................... 190,400 11,150,300 --------------- 141,234,678 --------------- HEALTH (20.0%) ALLEGIANCE CORP.................. 300,000 13,987,500 AMERICAN HOME PRODUCTS CORP...... 545,800 30,735,363 *BOSTON SCIENTIFIC CORP........... 1,468,800 39,382,200 BRISTOL-MYERS SQUIBB CO.......... 363,000 48,573,938 CARDINAL HEALTH, INC............. 450,150 34,155,131 GUIDANT CORP..................... 212,800 23,461,200 HBO & CO......................... 100,000 2,862,500 MCKESSON CORP.................... 425,800 33,664,812 PFIZER, INC...................... 441,100 55,330,481 SCHERING-PLOUGH CORP............. 373,600 20,641,400 WARNER-LAMBERT CO................ 636,000 47,819,250 --------------- 350,613,775 --------------- TOTAL CONSUMER STAPLES............. 491,848,453 --------------- FINANCIAL (13.0%) ALLSTATE CORP.................... 544,400 21,027,450 AMERICAN GENERAL CORP............ 300,000 23,400,000 AMERICAN INTERNATIONAL GROUP, INC............................. 186,337 18,004,813 BANKAMERICA CORP................. 563,712 33,893,184 CIT GROUP, INC. (CLASS A)........ 600,000 19,087,500 FANNIE MAE....................... 356,800 26,403,200 FIRST UNION CORP................. 383,800 23,339,837 FREDDIE MAC...................... 250,700 16,154,481 MELLON BANK CORP................. 247,200 16,995,000 MORGAN STANLEY, DEAN WITTER, DISCOVER & CO................... 300,000 21,300,000 SUNAMERICA, INC.................. 100,000 8,112,500 --------------- TOTAL FINANCIAL.................... 227,717,965 ---------------
29 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ------------------------- ------------------------- -- COLUMBIA GROWTH FUND, INC. -- ------
SHARES OR PRINCIPAL AMOUNT VALUE(1) ------------ --------------- COMMON STOCKS (CONTINUED) TECHNOLOGY (21.3%) *AMERICA ONLINE, INC.............. 235,500 $ 34,088,625 *ASCEND COMMUNICATIONS, INC....... 203,400 13,373,550 *CISCO SYSTEMS, INC............... 761,050 70,634,953 COMPAQ COMPUTER CORP............. 400,800 16,808,550 *COMPUTER SCIENCES CORP........... 533,200 34,358,075 *DELL COMPUTER CORP............... 200,400 14,666,775 *EMC CORP......................... 300,300 25,525,500 *GATEWAY 2000, INC................ 392,100 20,070,619 INTEL CORP....................... 240,100 28,466,856 LUCENT TECHNOLOGIES, INC......... 175,000 19,250,000 *MICROSOFT CORP................... 562,600 78,025,588 *TELLABS, INC..................... 264,100 18,107,356 --------------- TOTAL TECHNOLOGY................... 373,376,447 --------------- UTILITIES (5.6%) COMMUNICATIONS ALLTEL CORP...................... 300,000 17,943,750 AT&T CORP........................ 174,300 13,116,075 *MCI WORLDCOM, INC................ 600,000 43,050,000 SBC COMMUNICATIONS, INC.......... 200,300 10,741,088 *TELE-COMMUNICATIONS, INC. TCI GROUP (SERIES A)................ 228,900 12,661,031 --------------- TOTAL UTILITIES.................... 97,511,944 --------------- TOTAL COMMON STOCKS (COST $1,103,730,738)............. 1,729,620,899 --------------- SHARES OR PRINCIPAL AMOUNT VALUE(1) ------------ --------------- REPURCHASE AGREEMENT (1.5%) J.P. MORGAN SECURITIES, INC. 4.970% DATED 12/31/1998, DUE 01/04/1999 IN THE AMOUNT OF $26,913,239. COLLATERALIZED BY U.S. TREASURY BILLS DUE 06/24/1999, U.S. TREASURY BONDS 6.500% DUE 11/15/2026, U.S. TREASURY NOTES 5.375% DUE 06/30/2000 TO 07/31/2000. (COST $26,909,575)................ $26,909,575 $ 26,909,575 --------------- TOTAL INVESTMENTS (100.2%) (COST $1,130,640,313)................. 1,756,530,474 RECEIVABLES LESS LIABILITIES (-0.2%)... (3,506,933) --------------- NET ASSETS (100.0%).................... $ 1,753,023,541 --------------- ---------------
(1) See Note 1 of Notes to Financial Statements. * Non-income producing. See Notes to Financial Statements. 30 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ------------------ ------------------ -- COLUMBIA INTERNATIONAL STOCK FUND, INC. -- ------
SHARES OR PRINCIPAL DECEMBER 31, 1998 AMOUNT VALUE(1) ----------- ------------- COMMON STOCKS (93.6%) BELGIUM (0.7%) *LERNOUT & HAUSPIE SPEECH PRODUCTS NV (BUSINESS SERVICES)............ 27,000 $ 880,875 ------------- BRAZIL (0.2%) CIA TECIDOS DO NORTE DE MINAS SA (TEXTILES)........................ 1,973,067 233,528 ------------- CANADA (1.9%) *DANIER LEATHER, INC. (RETAIL)...... 47,800 275,421 *NEWBRIDGE NETWORKS CORP. (OFFICE EQUIP/COMP/COMM).................. 15,000 455,096 NORTHERN TELECOM LTD. (OFFICE EQUIP/COMP/COMM).................. 14,000 698,204 *POCO PETROLEUMS LTD. (OIL)......... 42,000 350,013 SHAW COMMUNICATIONS, INC. (CLASS B) (MEDIA)........................... 32,000 772,946 ------------- 2,551,680 ------------- CHILE (0.4%) DISTRIBUCION Y SERVICIO D&S SA, ADR (RETAIL).......................... 50,000 575,000 ------------- FINLAND (2.7%) FINNLINES OYJ (TRANSPORTATION)..... 17,000 731,935 HARTWALL OYJ ABP (SERIES A) (FOOD/BEVERAGES).................. 10,000 162,938 MERITANORDBANKEN OYJ (BANKS)....... 280,000 1,780,661 TIETO CORP. (CLASS B) (BUSINESS SERVICES)......................... 16,200 726,287 YIT-YHTYMA OYJ (CONSTRUCTION/ BUILDING MATERIALS)............... 31,400 272,866 ------------- 3,674,687 ------------- FRANCE (9.6%) *ALSTOM SA (ELECTRICAL EQUIPMENT)... 20,000 469,029 AXA-UAP SA (INSURANCE)............. 9,000 1,305,047 BANQUE NATIONALE DE PARIS (BANKS)........................... 8,000 659,075 CAP GEMINI SA (BUSINESS SERVICES).. 4,000 642,319 ESTABLISSEMENTS ECONOMIQUES DU CASION GUICHARD-PERRACHON SA (RETAIL).......................... 6,500 677,228 CIE DE SAINT GOBAIN SA (CONSTRUCTION/BUILDING MATERIALS)........................ 4,184 590,972 FRANCE TELECOM SA, ADR (UTILITIES/COMMUNICATION)......... 26,000 2,052,375 SHARES OR PRINCIPAL AMOUNT VALUE(1) ----------- ------------- PARIBAS SA (BANKS)................. 6,000 $ 521,697 RENAULT SA (AUTOMOBILES)........... 50,000 2,246,685 SCHNEIDER SA (ELECTRICAL EQUIPMENT)........................ 13,000 788,936 SODEXHO ALLIANCE SA (BUSINESS SERVICES)......................... 4,000 895,094 SYNTHELABO SA (PHARMACEUTICALS).... 3,600 762,405 VIVENDI (UTILITIES)................ 4,700 1,220,013 ------------- 12,830,875 ------------- GERMANY (5.2%) ALLIANZ AG (INSURANCE)............. 3,088 1,132,837 MANNESMANN AG (MACHINERY/ CAPITAL SPENDING)......................... 34,000 3,899,073 RWE AG (DIVERSIFIED INDS./ MANUFACTURING).................... 12,000 657,451 VOLKSWAGEN AG (AUTOMOBILES)........ 16,150 1,289,654 ------------- 6,979,015 ------------- HONG KONG (0.5%) CHEUNG KONG (HOLDINGS) LTD. (REAL ESTATE)........................... 86,000 618,883 ------------- HUNGARY (0.1%) GEDEON RICHTER LTD., GDR (PHARMACEUTICALS)................. 4,000 170,600 ------------- INDIA (1.0%) BANK OF BARODA LTD. (BANKS)........ 500 584 INFOSYS TECHNOLOGIES LTD. (BUSINESS SERVICES)......................... 15,200 1,058,223 MAHINDRA & MAHINDRA LTD. (AUTOMOBILES)..................... 70,000 271,796 ------------- 1,330,603 ------------- IRELAND (1.7%) BANK OF IRELAND PLC (BANKS)........ 65,000 1,448,875 IRISH LIFE PLC (INSURANCE)......... 87,500 824,520 ------------- 2,273,395 ------------- ITALY (4.8%) ALLEANZA ASSICURAZIONI S.P.A (INSURANCE)....................... 58,300 825,588 ASSICURAZIONI GENERALI S.P.A (INSURANCE)....................... 17,600 736,494 TELECOM ITALIA S.P.A, ADR (UTILITIES/COMMUNICATION)......... 22,800 1,983,600 UNICREDITO ITALIANO S.P.A (BANKS)........................... 488,500 2,901,861 ------------- 6,447,543 -------------
31 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ------------------ ------------------ -- COLUMBIA INTERNATIONAL STOCK FUND, INC. -- ------
SHARES OR PRINCIPAL AMOUNT VALUE(1) ----------- ------------- COMMON STOCKS (CONTINUED) JAPAN (23.3%) BANYU PHARMACEUTICAL CO., LTD. (PHARMACEUTICALS)................. 65,000 $ 1,210,143 BRIDGESTONE CORP. (AUTOMOBILES).... 32,000 727,681 FANCL CORP. (HEALTH/PERSONAL CARE)............................. 13,000 1,116,789 HIROSE ELECTRIC CO., LTD. (ELECTRONICS)..................... 21,000 1,472,651 ITO-YOKADO CO., LTD. (RETAIL)...... 16,000 1,120,601 KAO CORP. (FOOD/BEVERAGES)......... 65,000 1,469,459 KEYENCE CORP. (ELECTRONICS)........ 4,600 566,861 KOMATSU LTD. (MACHINERY/ CAPITAL SPENDING)......................... 143,000 751,787 MABUCHI MOTOR CO., LTD. (ELECTRICAL EQUIPMENT)........................ 16,000 1,226,987 NIDEC CORP. (ELECTRICAL EQUIPMENT)........................ 5,500 674,355 NINTENDO CO., LTD. (ENTERTAINMENT/LEISURE)........... 10,000 970,774 NIPPON TELEGRAPH & TELEPHONE CORP. (UTILITIES/ COMMUNICATION)........ 161 1,244,647 NOMURA SECURITIES CO., LTD., THE (FINANCIAL SERVICES).............. 152,000 1,327,345 NTT DATA CORP. (BUSINESS SERVICES)......................... 160 795,769 OJI PAPER CO., LTD. (FORESTRY/ PAPER PRODUCTS)................... 130,000 676,527 OLYMPUS OPTICAL CO., LTD. (ELECTRONICS)..................... 130,000 1,497,119 PIONEER ELECTRONIC CORP. (ELECTRONICS)..................... 35,000 588,005 RYOHIN KEIKAKU CO., LTD. (RETAIL).. 7,000 933,982 SANWA BANK LTD., THE (BANKS)....... 118,000 911,180 SEKISUI HOUSE, LTD. (CONSTRUCTION/BUILDING MATERIALS)........................ 112,000 1,186,560 SHIMAMURA CO., LTD. (RETAIL)....... 57,000 2,607,525 SONY CORP. (ELECTRONICS)........... 16,000 1,167,411 SUMITOMO BANK LTD., THE (BANKS).... 100,000 1,028,400 SUMITOMO REALTY & DEVELOPMENT CO., LTD. (RETAIL)..................... 190,000 618,192 TAKEDA CHEMICAL INDS., LTD. (PHARMACEUTICALS)................. 41,000 1,581,165 TOKIO MARINE & FIRE INSURANCE CO., LTD., THE (INSURANCE)............. 130,000 1,555,898 TORAY INDUSTRIES, INC. (CHEMICALS)....................... 65,000 339,993 SHARES OR PRINCIPAL AMOUNT VALUE(1) ----------- ------------- TOSHIBA CORP. (ELECTRONICS)........ 94,000 $ 560,850 TOYOTA MOTOR CORP. (AUTOMOBILES)... 50,000 1,360,857 ------------- 31,289,513 ------------- NETHERLANDS (8.1%) ABN AMRO HOLDING NV (BANKS)........ 32,524 684,564 AEGON NV (INSURANCE)............... 39,000 4,792,219 *EQUANT NV (BUSINESS SERVICES)...... 65,000 4,407,813 LAURUS NV (RETAIL)................. 27,224 687,611 VENDEX NV (RETAIL)................. 13,178 320,204 ------------- 10,892,411 ------------- NORWAY (0.5%) *PETROLEUM GEO-SERVICES ASA, ADR (OTHER ENERGY).................... 41,000 645,750 ------------- POLAND (0.1%) *MOSTOSTAL-WARSZAWA SA, GDR (CONSTRUCTION/BUILDING MATERIALS)........................ 34,800 167,040 ------------- SPAIN (4.4%) DRAGADOS Y CONSTRUCCIONES SA (CONSTRUCTION/BUILDING MATERIALS)........................ 59,000 2,177,762 METROVACESA SA (REAL ESTATE)....... 35,000 1,052,288 TELEFONICA SA, ADR (UTILITIES/ COMMUNICATION).................... 10,253 1,388,000 *TELEPIZZA SA (RESTAURANTS)......... 130,000 1,238,608 ------------- 5,856,658 ------------- SWEDEN (2.7%) ASSA ABLOY AB (CLASS B) (DIVERSIFIED INDS./ MANUFACTURING).................... 23,000 879,645 BILSPEDITION TRANSPORT & LOGISTICS (BTL) AB (TRANSPORTATION)......... 86,000 339,521 MUNTERS AB (DIVERSIFIED CONSUMER MANUFACTURING).................... 100,000 863,607 SKANDIA INSURANCE CO., LTD. (INSURANCE)....................... 101,000 1,545,116 ------------- 3,627,889 ------------- SWITZERLAND (7.1%) CREDIT SUISSE GROUP (REGISTERED) (BANKS)........................... 6,500 1,017,487 *GRETAG IMAGING GROUP (REGISTERED) (MACHINERY/ CAPITAL SPENDING)..... 7,000 601,391 NOVARTIS AG (BEARER) (PHARMACEUTICALS)................. 1,500 2,948,710
32 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ------------------ ------------------ -- COLUMBIA INTERNATIONAL STOCK FUND, INC. -- ------
SHARES OR PRINCIPAL AMOUNT VALUE(1) ----------- ------------- COMMON STOCKS (CONTINUED) ROCHE HOLDING AG (GENUSSSCHEINE) (PHARMACEUTICALS)................. 150 $ 1,830,384 *SAIA-BURGESS ELECTRONICS AG (REGISTERED) (ELECTRONICS)........ 2,700 668,374 UBS AG (REGISTERED) (BANKS)........ 2,000 614,497 ZURICH ALLIED AG (REGISTERED) (INSURANCE)....................... 2,500 1,851,135 ------------- 9,531,978 ------------- THAILAND (0.6%) *BANGKOK BANK PUBLIC CO., LTD. (FOREIGN) (BANKS)................. 160,000 330,270 *KING POWER INTERNATIONAL GROUP CO., LTD. (RETAIL)..................... 88,000 220,000 *THAI FARMERS BANK PUBLIC CO., LTD. (FOREIGN) (BANKS)................. 175,000 308,252 ------------- 858,522 ------------- UNITED KINGDOM (18.0%) BARCLAYS PLC (BANKS)............... 50,639 1,091,921 BRITISH AEROSPACE PLC (AEROSPACE/DEFENSE)............... 240,924 2,042,327 BRITISH SKY BROADCASTING GROUP PLC (MEDIA)........................... 105,000 797,501 BRITISH TELECOMMUNICATIONS PLC (UTILITIES/COMMUNICATION)......... 200,000 3,013,141 COMPASS GROUP PLC (ENTERTAINMENT/LEISURE)........... 250,000 2,863,815 GLAXO WELLCOME PLC (PHARMACEUTICALS)................. 98,000 3,371,922 GRANADA GROUP PLC (ENTERTAINMENT/LEISURE)........... 60,975 1,077,908 HAYS PLC (BUSINESS SERVICES)....... 100,000 877,654 NEXT PLC (RETAIL).................. 80,000 657,533 PEARSON PLC (MEDIA)................ 70,000 1,389,439 SELECT APPOINTMENTS HOLDINGS PLC (BUSINESS SERVICES)............... 54,000 557,040 SMITHKLINE BEECHAM PLC (PHARMACEUTICALS)................. 231,762 3,239,086 VODAFONE GROUP PLC (UTILITIES/ COMMUNICATION).................... 120,308 1,953,643 WPP GROUP PLC (MEDIA).............. 200,000 1,217,069 ------------- 24,149,999 ------------- TOTAL COMMON STOCKS (COST $92,140,397)................ 125,586,444 ------------- SHARES OR PRINCIPAL AMOUNT VALUE(1) ----------- ------------- PREFERRED STOCKS (1.3%) BRAZIL (0.1%) DIXIE TOGA SA (DIVERSIFIED CONSUMER GOODS/SERVICES)................... 437,500 $ 119,496 EMPRESA NACIONAL DE COMERCIO REDITO E PARTICIPACOES SA (TEXTILES)..... 1,195,000 1,187 ------------- 120,683 ------------- GERMANY (1.2%) PORSCHE AG (AUTOMOBILES)........... 700 1,597,095 ------------- TOTAL PREFERRED STOCKS (COST $1,091,140)................. 1,717,778 ------------- WARRANT (0.4%) FRANCE *VIVENDI (05/02/2001) (UTILITIES) (COST $129,829)................... 220,000 571,070 ------------- TOTAL INVESTMENTS, EXCLUDING TEMPORARY CASH INVESTMENT (COST $93,361,366)................ 127,875,292 ------------- REPURCHASE AGREEMENT (3.9%) J.P. MORGAN SECURITIES, INC. 4.970% DATED 12/31/1998, DUE 01/04/1999 IN THE AMOUNT OF $5,240,984 COLLATERALIZED BY U.S. TREASURY BILLS DUE 06/24/1999, U.S. TREASURY BONDS 6.500% DUE 11/15/2026, U.S. TREASURY NOTES 5.375% DUE 06/30/2000 TO 07/31/2000. (COST $5,240,270)................. $5,240,270 5,240,270 ------------- TOTAL INVESTMENTS (99.2%) (COST $98,601,636).................... 133,115,562 CASH AND RECEIVABLES LESS LIABILITIES (0.8%)................................ 1,077,438 ------------- NET ASSETS (100%)...................... $ 134,193,000 ------------- -------------
(1) See Note 1 of Notes to Financial Statements. * Non-income producing. See Notes to Financial Statements. 33 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - -------------------------- -------------------------- -- COLUMBIA SPECIAL FUND, INC. -- ------
SHARES OR PRINCIPAL DECEMBER 31,1998 AMOUNT VALUE(1) ------------ ------------- COMMON STOCKS (97.7%) BASIC INDUSTRIES & MANUFACTURING (2.2%) BUILDING & FORESTRY PRODUCTS LONGVIEW FIBRE CO................ 1,450,000 $ 16,765,625 SOUTHDOWN, INC................... 80,000 4,735,000 ------------- TOTAL BASIC INDUSTRIES & MANUFACTURING..................... 21,500,625 ------------- BUSINESS & CONSUMER SERVICES (26.3%) SERVICES & PUBLISHING (16.8%) *APOLLO GROUP, INC................ 450,000 15,243,750 *CERIDIAN CORP.................... 214,500 14,974,781 *CSG SYSTEMS INTERNATIONAL, INC............................. 120,000 9,480,000 ECOLAB, INC...................... 374,000 13,534,125 *FISERV, INC...................... 434,100 22,329,019 MEREDITH CORP.................... 117,000 4,431,375 *ROMAC INTERNATIONAL, INC......... 465,000 10,346,250 SERVICE CORPORATION INT'L........ 545,000 20,744,063 SERVICEMASTER CO................. 675,000 14,892,187 *STERLING COMMERCE, INC........... 403,000 18,135,000 UNITOG CO........................ 323,000 9,286,250 *YOUNG & RUBICAM, INC............. 280,000 9,065,000 ------------- 162,461,800 ------------- MEDIA & ENTERTAINMENT (6.7%) *CHANCELLOR MEDIA CORP............ 250,000 11,968,750 *INFINITY BROADCASTING CORP. (CLASS A)....................... 354,100 9,693,487 *JACOR COMMUNICATIONS, INC........ 220,000 14,162,500 *MEDIAONE GROUP, INC.............. 200,000 9,400,000 *UNIVISION COMMUNICATIONS, INC. (CLASS A)....................... 550,000 19,903,125 ------------- 65,127,862 ------------- POLLUTION CONTROL (2.8%) *ALLIED WASTE INDUSTRIES, INC..... 224,000 5,292,000 *AQUA ALLIANCE, INC. (CLASS A).... 1,663,300 3,430,556 *CUNO, INC........................ 360,000 5,850,000 *ESCO ELECTRONICS CORP............ 228,700 2,072,594 WASTE MANAGEMENT, INC............ 233,300 10,877,613 ------------- 27,522,763 ------------- TOTAL BUSINESS & CONSUMER SERVICES.......................... 255,112,425 ------------- SHARES OR PRINCIPAL AMOUNT VALUE(1) ------------ ------------- CONSUMER CYCLICAL (18.1%) CONSUMER DURABLE (0.9%) *FURNITURE BRANDS INTERNATIONAL, INC............................. 300,000 $ 8,175,000 ------------- CONSUMER NON-DURABLE (17.2%) *ABERCROMBIE & FITCH CO........... 375,000 26,531,250 *ANNTAYLOR STORES CORP............ 479,000 18,890,562 *BED, BATH & BEYOND, INC.......... 858,000 29,279,250 *BRINKER INTERNATIONAL, INC....... 381,300 11,010,038 *CONSOLIDATED STORES CORP......... 362,700 7,322,006 *HELEN OF TROY LTD................ 240,000 3,525,000 *OUTBACK STEAKHOUSE, INC.......... 303,000 12,082,125 *PAPA JOHN'S INTERNATIONAL, INC............................. 418,000 18,444,250 *VANS, INC........................ 515,000 3,540,625 *WESTPOINT STEVENS, INC........... 450,000 14,203,125 *WILLIAMS-SONOMA, INC............. 550,000 22,171,875 ------------- 167,000,106 ------------- TOTAL CONSUMER CYCLICAL............ 175,175,106 ------------- CONSUMER STAPLES (35.4%) FOOD & HOUSEHOLD PRODUCTS (14.4%) AMERICAN STORES CO............... 1,215,000 44,879,062 HANNAFORD BROTHERS CO............ 155,000 8,215,000 *KROGER CO........................ 282,500 17,091,250 *MEYER (FRED), INC................ 700,000 42,175,000 *SAFEWAY, INC..................... 250,000 15,234,375 *WHOLE FOODS MARKET, INC.......... 247,000 11,948,625 ------------- 139,543,312 ------------- HEALTH (21.0%) *AMERICAN ONCOLOGY RESOURCES, INC............................. 750,000 10,921,875 CARDINAL HEALTH, INC............. 270,000 20,486,250 *CHIRON CORP...................... 200,000 5,237,500 *CYTYC CORP....................... 510,000 13,132,500 *ELAN CORP. PLC ADR............... 182,000 12,660,375 *HEALTHSOUTH CORP................. 550,000 8,490,625 *INHALE THERAPEUTIC SYSTEMS, INC............................. 184,100 6,075,300 MCKESSON CORP.................... 297,000 23,481,563 OMNICARE, INC.................... 200,000 6,950,000 *PAREXEL INTERNATIONAL CORP....... 300,000 7,500,000 +*RESMED, INC...................... 786,000 35,664,750 *SEROLOGICALS CORP................ 525,000 15,750,000
34 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - -------------------------- -------------------------- -- COLUMBIA SPECIAL FUND, INC. -- ------
SHARES OR PRINCIPAL AMOUNT VALUE(1) ------------ ------------- COMMON STOCKS (CONTINUED) *SHIRE PHARMACEUTICALS GROUP PLC ADR............................. 250,000 $ 5,062,500 *TRANSKARYOTIC THERAPIES, INC..... 200,000 5,075,000 UNITED HEALTHCARE CORP........... 200,000 8,612,500 *WATSON PHARMACEUTICALS, INC...... 290,000 18,233,750 ------------- 203,334,488 ------------- TOTAL CONSUMER STAPLES............. 342,877,800 ------------- FINANCIAL (2.8%) AMERICAN BANKERS INSURANCE GROUP, INC............................. 165,000 7,981,875 CIT GROUP, INC. (CLASS A)........ 300,000 9,543,750 FINOVA GROUP, INC................ 180,000 9,708,750 ------------- TOTAL FINANCIAL.................... 27,234,375 ------------- TECHNOLOGY (10.7%) *3COM CORP........................ 400,000 17,925,000 *ALTERA CORP...................... 250,000 15,218,750 *ASCEND COMMUNICATIONS, INC....... 230,000 15,122,500 *CADENCE DESIGN SYSTEMS, INC...... 300,000 8,925,000 *FLEXTRONICS INTERNATIONAL LTD.... 71,100 6,087,938 *MAXTOR CORP...................... 340,000 4,760,000 *QLOGIC CORP...................... 55,000 7,198,125 *SEAGATE TECHNOLOGY, INC.......... 331,250 10,020,312 *SYNOPSYS, INC.................... 220,000 11,935,000 *TRANSACTION SYSTEMS ARCHITECTS, INC. (CLASS A).................. 142,300 7,115,000 ------------- TOTAL TECHNOLOGY................... 104,307,625 ------------- UTILITIES (2.2%) COMMUNICATIONS (1.5%) COMSAT CORP...................... 400,000 14,400,000 ------------- ELECTRIC & GAS (0.7%) UNITED WATER RESOURCES, INC...... 279,700 6,695,319 ------------- TOTAL UTILITIES.................... 21,095,319 ------------- TOTAL COMMON STOCKS (COST $658,662,979)............... 947,303,275 ------------- SHARES OR PRINCIPAL AMOUNT VALUE(1) ------------ ------------- WARRANTS (0.0%) *AQUA ALLIANCE, INC. (03/11/2001) (COST $272,842)................... 330,140 $ 225,105 ------------- TOTAL INVESTMENTS, EXCLUDING TEMPORARY CASH INVESTMENT (COST $658,935,821)............... 947,528,380 ------------- REPURCHASE AGREEMENT (2.4%) J.P. MORGAN SECURITIES, INC. 4.970% DATED 12/31/1998, DUE 01/04/1999 IN THE AMOUNT OF $23,240,363. COLLATERALIZED BY U.S. TREASURY BILLS DUE 06/24/1999, U.S. TREASURY BONDS 6.500% DUE 11/15/2026, U.S. TREASURY NOTES 5.375% DUE 06/30/2000 TO 07/31/2000. (COST $23,237,199)................ $23,237,199 23,237,199 ------------- TOTAL INVESTMENTS (100.1%) (COST 682,173,020).................... 970,765,579 RECEIVABLES LESS LIABILITIES (-0.1%)... (1,406,688) ------------- NET ASSETS (100.0%).................... $ 969,358,891 ------------- -------------
(1) See Note 1 of Notes to Financial Statements. * Non-income producing. + Affiliated issuer See Notes to Financial Statements. 35 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ------------------------ ------------------------ -- COLUMBIA SMALL CAP FUND, INC. -- ------
SHARES OR PRINCIPAL DECEMBER 31, 1998 AMOUNT VALUE(1) ----------- ------------- COMMON STOCKS (94.6%) BASIC INDUSTRIES & MANUFACTURING (1.2%) BUILDING & FORESTRY PRODUCTS (1.0%) MARTIN MARIETTA MATERIALS, INC............................. 12,800 $ 796,000 SOUTHDOWN, INC. ................. 13,200 781,275 ------------- 1,577,275 ------------- MACHINERY CAPITAL SPENDING (0.2%) GRACO, INC. ..................... 13,200 389,400 ------------- TOTAL BASIC INDUSTRIES & MANUFACTURING..................... 1,966,675 ------------- BUSINESS & CONSUMER SERVICES (19.0%) SERVICES & PUBLISHING (18.0%) *ADVO, INC........................ 68,300 1,801,412 *AMBASSADORS INTERNATIONAL, INC............................. 50,000 737,500 *APOLLO GROUP, INC. .............. 62,800 2,127,350 *ASYMETRIX LEARNING SYSTEMS, INC............................. 40,300 176,313 *FAMILY GOLF CENTERS, INC......... 115,550 2,282,112 G & K SERVICES, INC. (CLASS A)... 26,800 1,427,100 *GLOBAL VACATION GROUP, INC....... 124,200 1,071,225 *ITT EDUCATIONAL SERVICES, INC.... 62,000 2,108,000 NATIONAL DATA CORP............... 44,000 2,142,250 *NOVA CORP........................ 87,275 3,027,352 *PROFESSIONAL DETAILING, INC...... 58,770 1,660,252 *PROFIT RECOVERY GROUP INTERNATIONAL, INC.............. 19,400 726,288 *ROMAC INTERNATIONAL, INC......... 71,500 1,590,875 *SCHEIN (HENRY), INC.............. 43,500 1,946,625 SELECT APPOINTMENTS HOLDINGS PLC ADR............................. 44,700 961,050 *STERLING COMMERCE, INC........... 63,200 2,844,000 *SYLVAN LEARNING SYSTEMS, INC..... 74,900 2,284,450 ------------- 28,914,154 ------------- POLLUTION CONTROL (1.0%) *ALLIED WASTE INDUSTRIES, INC..... 33,500 791,437 *CASELLA WASTE SYSTEMS, INC. ..... 19,000 705,375 ------------- 1,496,812 ------------- TOTAL BUSINESS & CONSUMER SERVICES.......................... 30,410,966 ------------- SHARES OR PRINCIPAL AMOUNT VALUE(1) ----------- ------------- CONSUMER CYCLICAL (20.6%) CONSUMER DURABLE (4.2%) *CHAMPION ENTERPRISES, INC........ 47,300 $ 1,294,837 ETHAN ALLEN INTERIORS, INC....... 37,600 1,541,600 *MODTECH, INC..................... 70,000 1,067,500 *TOWER AUTOMOTIVE, INC............ 75,600 1,885,275 WATSCO, INC...................... 53,250 891,938 ------------- 6,681,150 ------------- CONSUMER NON-DURABLE (16.4%) *ACTION PERFORMANCE COS., INC..... 72,300 2,557,613 *AMES DEPARTMENT STORES, INC...... 96,500 2,605,500 *BED, BATH & BEYOND, INC. ........ 89,100 3,040,537 *BUILDING MATERIALS HOLDING CORP............................ 101,300 1,228,262 *CEC ENTERTAINMENT, INC........... 36,000 999,000 CKE RESTAURANTS, INC............. 67,848 1,997,276 *CAVANAUGHS HOSPITALITY CORP...... 39,600 425,700 *COLUMBIA SPORTSWEAR CO........... 32,000 540,000 *COST PLUS, INC. ................. 43,600 1,367,950 *HELEN OF TROY LTD................ 107,500 1,578,906 *HOLLYWOOD ENTERTAINMENT CORP..... 90,300 2,460,675 *OMEGA PROTEIN CORP............... 13,000 131,625 *QUIKSILVER, INC.................. 59,100 1,773,000 *TIMBERLAND CO. (CLASS A)......... 27,700 1,262,081 *WET SEAL, INC. (CLASS A)......... 42,900 1,295,044 *WILLIAMS-SONOMA, INC............. 78,200 3,152,438 ------------- 26,415,607 ------------- TOTAL CONSUMER CYCLICAL............ 33,096,757 ------------- CONSUMER STAPLES (21.8%) FOOD & HOUSEHOLD PRODUCTS (3.2%) *AURORA FOODS, INC................ 89,200 1,767,275 *FRESH DEL MONTE PRODUCE, INC..... 62,000 1,344,625 *U.S. FOODSERVICE, INC. .......... 17,000 833,000 *WHOLE FOODS MARKET, INC.......... 27,000 1,306,125 ------------- 5,251,025 ------------- HEALTH (18.6%) *AMERICAN ONCOLOGY RESOURCES, INC............................. 110,000 1,601,875 *ANESTA CORP...................... 45,000 1,198,125 *BALANCE BAR CO. ................. 54,700 588,025 *BARR LABORATORIES, INC........... 23,000 1,104,000
36 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ------------------------ ------------------------ -- COLUMBIA SMALL CAP FUND, INC. -- ------
SHARES OR PRINCIPAL AMOUNT VALUE(1) ----------- ------------- COMMON STOCKS (CONTINUED) *BIOMATRIX, INC................... 3,700 $ 215,525 *CARDIAC PATHWAYS CORP............ 95,000 403,750 *COVANCE, INC..................... 66,000 1,922,250 *HEALTHCARE RECOVERIES, INC....... 62,500 1,062,500 *ICON PUBLIC LTD. CO. ADR......... 28,800 964,800 *IDEXX LABORATORIES, INC.......... 88,000 2,367,750 *INHALE THERAPEUTIC SYSTEMS, INC............................. 25,700 848,100 *INTELLIGENT POLYMERS LTD. (UNITS - EACH UNIT CONSISTS OF 1 SHARE & 1 WARRANT).................... 33,000 924,000 JONES PHARMA, INC................ 60,800 2,219,200 *LIGAND PHARMACEUTICALS, INC. (CLASS B)....................... 73,897 859,053 *OXFORD HEALTH PLANS, INC......... 100,000 1,487,500 *PAREXEL INTERNATIONAL CORP....... 73,000 1,825,000 *PATHOGENESIS CORP................ 57,700 3,346,600 *PHYSICIAN RELIANCE NETWORK, INC............................. 52,000 682,500 *PROTEIN DESIGN LABS, INC......... 89,700 2,085,525 *QUORUM HEALTH GROUP, INC......... 48,600 628,762 *SPIROS DEVELOPMENT CORP. II, INC. (UNITS - 1 CALLABLE COMMON SHARE OF SPIROS & 1 WARRANT OF DURABLE PHARMACEUTICALS)................ 30,000 268,125 *TRANSKARYOTIC THERAPIES, INC. ... 60,000 1,522,500 *UNIVERSAL HEALTH SERVICES, INC. (CLASS B)....................... 32,500 1,685,938 ------------- 29,811,403 ------------- TOTAL CONSUMER STAPLES............. 35,062,428 ------------- ENERGY (2.3%) DOMESTIC & INTERNATIONAL INTEGRATED (0.7%) *TESORO PETROLEUM CORP............ 46,500 563,812 WESTERN GAS RESOURCES, INC....... 107,800 619,850 ------------- 1,183,662 ------------- ENERGY SERVICES (1.6%) *HANOVER COMPRESSOR CO............ 84,700 2,175,731 *NEWPARK RESOURCES, INC........... 45,000 306,563 ------------- 2,482,294 ------------- TOTAL ENERGY....................... 3,665,956 ------------- FINANCIAL (1.2%) NORTH FORK BANCORP, INC.......... 44,150 1,056,841 SHARES OR PRINCIPAL AMOUNT VALUE(1) ----------- ------------- STIRLING COOKE BROWN HOLDINGS LTD............................. 47,900 $ 832,262 ------------- TOTAL FINANCIAL.................... 1,889,103 ------------- TECHNOLOGY (25.7%) *ACXIOM CORP. .................... 79,600 2,467,600 *AMERICAN MANAGEMENT SYSTEMS, INC............................. 59,200 2,368,000 *ARTESYN TECHNOLOGIES, INC. ...... 25,000 350,000 *AXENT TECHNOLOGIES, INC.......... 65,800 2,011,012 *CERNER CORP...................... 115,800 3,097,650 *CIBER, INC....................... 119,200 3,330,150 *COMPUTER NETWORK TECHNOLOGY CORP............................ 27,500 343,750 *COM21, INC. ..................... 58,800 1,234,800 *ENGINEERING ANIMATION, INC....... 42,600 2,300,400 *FLEXTRONICS INTERNATIONAL LTD.... 22,700 1,943,688 *FORE SYSTEMS, INC................ 100,000 1,831,250 *HMT TECHNOLOGY CORP.............. 152,500 1,953,906 *HNC SOFTWARE, INC................ 51,000 2,062,312 *MICROS SYSTEMS, INC.............. 39,200 1,288,700 *PEERLESS SYSTEMS CORP............ 40,700 345,950 *PEREGRINE SYSTEMS, INC........... 34,600 1,604,575 *POWERWAVE TECHNOLOGIES, INC...... 78,500 1,462,063 *QLOGIC CORP...................... 1,800 235,575 *RADISYS CORP..................... 10,000 300,000 *SAVILLE SYSTEMS PLC ADR.......... 104,000 1,976,000 *TRANSACTION SYSTEMS ARCHITECTS, INC. (CLASS A).................. 64,900 3,245,000 *TRANSITION SYSTEMS, INC. ........ 35,000 525,000 *VISIO CORP....................... 67,000 2,449,688 *XIRCOM, INC...................... 72,300 2,458,200 ------------- TOTAL TECHNOLOGY................... 41,185,269 ------------- TRANSPORTATION (0.9%) EXPEDITORS INTERNATIONAL OF WASHINGTON, INC................. 33,300 1,398,600 ------------- UTILITIES (1.9%) COMMUNICATIONS COMSAT CORP...................... 68,800 2,476,800 *PACIFIC GATEWAY EXCHANGE, INC.... 13,300 639,231 ------------- TOTAL UTILITIES.................... 3,116,031 ------------- TOTAL COMMON STOCKS (COST $125,925,226)............... 151,791,785 -------------
37 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ------------------------ ------------------------ -- COLUMBIA SMALL CAP FUND, INC. -- ------
SHARES OR PRINCIPAL AMOUNT VALUE(1) ----------- ------------- PREFERRED STOCKS (0.4%) CONVERTIBLES REAL ESTATE INVESTMENT TRUSTS *APARTMENT INVESTMENT & MANAGEMENT CO. (CLASS E) (COST $699,589)..... 15,720 $ 581,640 TOTAL INVESTMENTS, EXCLUDING TEMPORARY CASH INVESTMENTS (COST $126,624,815) 152,373,425 ------------- REPURCHASE AGREEMENTS (8.2%) J.P. MORGAN SECURITIES, INC. 4.970% DATED 12/31/1998, DUE 01/04/1999 IN THE AMOUNT OF $6,739,386. COLLATERALIZED BY U.S. TREASURY BILLS DUE 06/24/1999, U.S. TREASURY BONDS 6.500% DUE 11/15/2026, U.S. TREASURY NOTES 5.375% DUE 06/30/2000 TO 07/31/2000...... $6,738,468 6,738,468 SHARES OR PRINCIPAL AMOUNT VALUE(1) ----------- ------------- MERRILL LYNCH 4.917% DATED 12/31/1998, DUE 01/04/1999 IN THE AMOUNT OF $6,500,876. COLLATERALIZED BY U.S. TREASURY STRIPS DUE 11/15/2014 TO 11/15/2024...... $6,500,000 $ 6,500,000 ------------- TOTAL REPURCHASE AGREEMENTS (COST $13,238,468)................ 13,238,468 ------------- TOTAL INVESTMENTS (103.2%) (COST $139,863,283)................... 165,611,893 RECEIVABLES LESS LIABILITIES (-3.2%)... (5,139,686) ------------- NET ASSETS (100%)...................... $ 160,472,207 ------------- -------------
(1) See Note 1 of Notes to Financial Statements. * Non-income producing. See Notes to Financial Statements. 38 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ------------------- ------------------- -- COLUMBIA REAL ESTATE EQUITY FUND, INC. -- ------
SHARES OR PRINCIPAL DECEMBER 31, 1998 AMOUNT VALUE(1) ----------- ------------- COMMON STOCKS (94.4%) REAL ESTATE INVESTMENT TRUSTS APARTMENTS (15.8%) APARTMENT INVESTMENT & MANAGEMENT CO. (CLASS A)..................... 230,000 $ 8,553,125 ARCHSTONE COMMUNITIES TRUST........ 256,171 5,187,463 AVALONBAY COMMUNITIES, INC......... 126,464 4,331,392 COLONIAL PROPERTIES TRUST.......... 156,100 4,156,162 EQUITY RESIDENTIAL PROPERTIES TRUST............................. 91,003 3,679,934 ------------- 25,908,076 ------------- COMMUNITY CENTERS (12.3%) *EXCEL LEGACY CORP.................. 142,100 568,400 KIMCO REALTY CORP.................. 114,400 4,540,250 NEW PLAN EXCEL REALTY TRUST, INC... 290,520 6,445,913 PAN PACIFIC RETAIL PROPERTIES, INC............................... 152,200 3,034,487 *VORNADO OPERATING, INC............. 8,095 65,266 VORNADO REALTY TRUST............... 161,900 5,464,125 ------------- 20,118,441 ------------- INDUSTRIAL (30.3%) ALEXANDRIA REAL ESTATE EQUITIES, INC............................... 149,500 4,625,156 CABOT INDUSTRIAL TRUST............. 300,000 6,131,250 DUKE REALTY INVESTMENTS, INC....... 215,000 4,998,750 FIRST INDUSTRIAL REALTY TRUST, INC............................... 155,500 4,169,344 LIBERTY PROPERTY TRUST............. 186,700 4,597,487 PROLOGIS TRUST..................... 194,145 4,028,509 PUBLIC STORAGE, INC................ 274,100 7,417,831 SHURGARD STORAGE CENTERS, INC. (CLASS A)......................... 123,900 3,198,169 SPIEKER PROPERTIES, INC............ 168,500 5,834,313 STORAGE TRUST REALTY............... 51,200 1,196,800 TRINET CORPORATE REALTY TRUST, INC............................... 131,000 3,504,250 ------------- 49,701,859 ------------- LODGING (2.2%) STARWOOD HOTELS & RESORTS TRUST.... 160,200 3,634,538 ------------- MANUFACTURED HOMES (2.6%) MANUFACTURED HOME COMMUNITIES, INC............................... 170,400 4,270,650 ------------- SHARES OR PRINCIPAL AMOUNT VALUE(1) ----------- ------------- OFFICE (15.7%) BOSTON PROPERTIES, INC............. 137,000 $ 4,178,500 EQUITY OFFICE PROPERTIES TRUST..... 386,318 9,271,632 MACK-CALI REALTY CORP.............. 189,400 5,847,725 PRENTISS PROPERTIES TRUST.......... 135,000 3,012,188 RECKSON ASSOCIATES REALTY CORP..... 156,800 3,479,000 *RECKSON SERVICE INDUSTRIES, INC.... 12,544 51,681 ------------- 25,840,726 ------------- OTHER (5.4%) CAPITAL AUTOMOTIVE................. 165,000 2,454,375 *CATELLUS DEVELOPMENT CORP.......... 261,900 3,748,444 *SECURITY CAPITAL GROUP, INC. (CLASS B)................................ 202,900 2,751,831 ------------- 8,954,650 ------------- SHOPPING MALLS (10.1%) GENERAL GROWTH PROPERTIES, INC..... 143,000 5,416,125 MACERICH CO. (THE)................. 83,300 2,134,562 SIMON PROPERTY GROUP, INC.......... 314,256 8,956,296 ------------- 16,506,983 ------------- TOTAL COMMON STOCKS (COST $157,255,085)............... 154,935,923 ------------- REPURCHASE AGREEMENT (4.4%) J.P. MORGAN SECURITIES, INC. 4.970% DATED 12/31/1998, DUE 01/04/1999 IN THE AMOUNT OF $7,186,172. COLLATERALIZED BY U.S. TREASURY BILLS DUE 06/24/1999, U.S. TREASURY BONDS 6.500% DUE 11/15/2026, U.S. TREASURY NOTES 5.375% DUE 06/30/2000 TO 07/31/2000. (COST $7,185,194)................... $7,185,194 7,185,194 ------------- TOTAL INVESTMENTS (98.8%) (COST $164,440,279)................... 162,121,117 RECEIVABLES LESS LIABILITIES (1.2%).... 2,051,237 ------------- NET ASSETS (100.0%).................... $ 164,172,354 ------------- -------------
(1) See Note 1 of Notes to Financial Statements. * Non-income producing. See Notes to Financial Statements. 39 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ------------------------ ------------------------ -- COLUMBIA BALANCED FUND, INC. -- ------
SHARES OR PRINCIPAL DECEMBER 31, 1998 AMOUNT VALUE(1) ------------- ------------- COMMON STOCKS (54.5%) BASIC INDUSTRIES & MANUFACTURING (4.5%) BUILDING & FORESTRY PRODUCTS (0.1%) CHAMPION INTERNATIONAL CORP...... 32,900 $ 1,332,450 ------------- MACHINERY CAPITAL SPENDING (4.4%) EMERSON ELECTRIC CO.............. 38,500 2,408,656 GENERAL ELECTRIC CO.............. 228,700 23,341,694 TYCO INTERNATIONAL LTD........... 221,326 16,696,280 ------------- 42,446,630 ------------- TOTAL BASIC INDUSTRIES & MANUFACTURING..................... 43,779,080 ------------- BUSINESS & CONSUMER SERVICES (3.0%) MEDIA & ENTERTAINMENT (2.3%) *CLEAR CHANNEL COMMUNICATIONS, INC............................. 181,600 9,897,200 COMCAST CORP. (CLASS A SPECIAL)........................ 72,900 4,278,319 *INFINITY BROADCASTING CORP. (CLASS A)....................... 208,400 5,704,950 *TELE-COMMUNICATIONS, INC......... TCI VENTURES GROUP (SERIES A).... 103,700 2,443,431 ------------- 22,323,900 ------------- POLLUTION CONTROL (0.7%) WASTE MANAGEMENT, INC............ 152,600 7,114,975 ------------- TOTAL BUSINESS & CONSUMER SERVICES.......................... 29,438,875 ------------- CONSUMER CYCLICAL (5.7%) CONSUMER DURABLE (0.5%) FEDERAL-MOGUL CORP............... 86,100 5,122,950 ------------- CONSUMER NON-DURABLE (5.2%) *BED, BATH & BEYOND, INC.......... 104,000 3,549,000 CARNIVAL CORP.................... 135,200 6,489,600 *CONSOLIDATED STORES CORP......... 294,300 5,941,181 DAYTON-HUDSON CORP............... 200,300 10,866,275 *FEDERATED DEPARTMENT STORES, INC............................. 135,700 5,911,431 HOME DEPOT, INC. (THE)........... 78,900 4,827,694 LOWE'S COS., INC................. 195,000 9,981,563 *OFFICE DEPOT, INC................ 91,900 3,394,556 ------------- 50,961,300 ------------- TOTAL CONSUMER CYCLICAL............ 56,084,250 ------------- SHARES OR PRINCIPAL AMOUNT VALUE(1) ------------- ------------- CONSUMER STAPLES (14.4%) FOOD & HOUSEHOLD PRODUCTS (4.7%) AVON PRODUCTS, INC............... 190,100 $ 8,411,925 GILLETTE CO...................... 63,500 3,067,844 *MEYER (FRED), INC................ 124,300 7,489,075 PHILLIP MORRIS COS., INC......... 215,700 11,539,950 *SAFEWAY, INC..................... 203,200 12,382,500 WALGREEN CO...................... 49,400 2,892,987 ------------- 45,784,281 ------------- HEALTH (9.7%) AMERICAN HOME PRODUCTS CORP...... 154,000 8,672,125 *BOSTON SCIENTIFIC CORP........... 277,600 7,443,150 BRISTOL-MYERS SQUIBB CO.......... 119,400 15,977,212 CARDINAL HEALTH, INC............. 107,850 8,183,119 GUIDANT CORP..................... 63,700 7,022,925 PFIZER, INC...................... 170,400 21,374,550 SCHERING-PLOUGH CORP............. 198,600 10,972,650 WARNER-LAMBERT CO................ 198,500 14,924,719 ------------- 94,570,450 ------------- TOTAL CONSUMER STAPLES............. 140,354,731 ------------- ENERGY (3.0%) AMOCO CORP....................... 76,800 4,636,800 *CONOCO, INC. (CLASS A)........... 129,100 2,694,962 ELF AQUITANE ADR................. 45,000 2,548,125 EXXON CORP....................... 127,700 9,338,063 MOBIL CORP....................... 76,800 6,691,200 ROYAL DUTCH PETROLEUM CO......... 34,200 1,637,325 TEXACO, INC...................... 33,700 1,781,888 ------------- TOTAL ENERGY....................... 29,328,363 ------------- FINANCIAL (7.6%) ALLSTATE CORP.................... 225,200 8,698,350 AMERICAN GENERAL CORP............ 88,600 6,910,800 BANK ONE CORP.................... 131,318 6,705,425 BANKAMERICA CORP................. 122,400 7,359,300 CHASE MANHATTAN CORP............. 79,200 5,390,550 CHUBB CORP....................... 31,900 2,069,513 CITIGROUP, INC................... 76,250 3,774,375 FREDDIE MAC...................... 199,100 12,829,506 FIRST UNION CORP................. 154,900 9,419,856 MELLON BANK CORP................. 96,900 6,661,875 MORGAN STANLEY, DEAN WITTER, DISCOVER & CO................... 38,500 2,733,500
40 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ------------------------ ------------------------ -- COLUMBIA BALANCED FUND, INC. -- ------
SHARES OR PRINCIPAL AMOUNT VALUE(1) ------------- ------------- TRAVELERS PROPERTY CASUALTY CORP. (CLASS A)....................... 60,200 $ 1,866,200 ------------- TOTAL FINANCIAL.................... 74,419,250 ------------- TECHNOLOGY (11.4%) *AMERICA ONLINE, INC................ 72,300 10,465,425 *ASCEND COMMUNICATIONS, INC......... 78,400 5,154,800 *CISCO SYSTEMS, INC................. 82,275 7,636,148 COMPAQ COMPUTER CORP............... 71,600 3,002,725 *COMPUTER SCIENCES CORP............. 161,900 10,432,432 *DELL COMPUTER CORP................. 100,300 7,340,706 *GATEWAY 2000, INC.................. 120,400 6,162,975 INTEL CORP......................... 81,600 9,674,700 INTERNATIONAL BUSINESS MACHINES CORP.............................. 70,200 12,969,450 LUCENT TECHNOLOGIES, INC........... 32,400 3,564,000 *MICROSOFT CORP..................... 178,000 24,686,375 *TELLABS, INC....................... 107,300 7,356,756 *XILINX, INC........................ 39,800 2,591,975 ------------- TOTAL TECHNOLOGY................... 111,038,467 ------------- UTILITIES (4.9%) COMMUNICATIONS (4.5%) AT&T CORP........................ 29,300 2,204,825 ALLTEL CORP...................... 81,900 4,898,644 BELL ATLANTIC CORP............... 93,500 5,311,969 *MCI WORLDCOM, INC................ 208,958 14,992,736 SBC COMMUNICATIONS, INC.......... 185,600 9,952,800 *TELE-COMMUNICATIONS, INC. TCI GROUP (SERIES A)................ 115,300 6,377,531 ------------- 43,738,505 ------------- ELECTRIC & GAS (0.4%) DUKE ENERGY CORP................. 54,600 3,497,813 ------------- TOTAL UTILITIES.................... 47,236,318 ------------- TOTAL COMMON STOCKS (COST $377,528,286)............... 531,679,334 ------------- BONDS (44.0%) U.S. GOVERNMENT SECURITIES (22.0%) U.S. TREASURY NOTES & BONDS (8.0%) U.S. TREASURY BONDS 8.125% 08/15/2019................ $ 19,765,000 26,377,005 7.625% 11/15/2022................ 11,075,000 14,371,540 U.S. TREASURY NOTES 6.875% 08/31/1999................ 7,960,000 8,071,941 6.125% 12/31/2001................ 3,500,000 3,641,096 SHARES OR PRINCIPAL AMOUNT VALUE(1) ------------- ------------- 7.000% 07/15/2006................ $ 21,975,000 $ 25,078,969 ------------- 77,540,551 ------------- U.S. AGENCY BONDS (0.4%) FEDERAL NATIONAL MORTGAGE ASSOCIATION 6.000% 05/15/2008................ 4,000,000 4,222,480 ------------- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) (1.4%) 6.000% 11/15/2028 - 12/15/2028..... 13,669,931 13,550,319 ------------- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA II) (1.3%) 6.000% 11/20/2028 - 12/20/2028..... 12,903,101 12,705,555 ------------- FEDERAL HOUSING ADMINISTRATION (FHA) (0.3%) FHA INSURED PROJECT POOL #55 7.430% 04/01/2022.................. 1,630,132 1,713,743 ------------- FHA INSURED PROJECT POOL #53-43077 9.125% 07/25/2033.................. 1,094,515 1,146,505 ------------- 2,860,248 ------------- AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS (10.6%) GNMA (0.9%) GNMA GTD. REMIC PASS THRU SECS. REMIC TR. 1997-4 CL. B 7.000% 08/20/2026.............. 3,785,459 3,870,707 GNMA GTD. REMIC PASS THRU SECS. REMIC TR. 1997-4 CL. C 7.000% 03/20/2027.............. 3,877,000 3,952,989 GNMA GTD. REMIC PASS THRU SECS. REMIC TR. 1998-1 CL. A 7.000% 01/20/2028.............. 1,090,000 1,111,103 ------------- 8,934,799 ------------- FNMA (5.3%) FNMA GTD. REMIC PASS THRU CTF. REMIC TR. G97-3 CL. VB 7.000% 08/20/2006.............. 760,000 792,706 FNMA GTD. REMIC PASS THRU CTF. REMIC TR. 1997-G5 CL. VA 7.500% 07/17/2012.............. 5,700,000 5,931,534 FNMA GTD. REMIC PASS THRU CTF. REMIC TR. 1997-74 CL. D 7.500% 09/20/2023.............. 2,486,944 2,528,983 FNMA GTD. REMIC PASS THRU CTF. REMIC TR. 1994-10 CL. UU 6.500% 01/25/2024.............. 1,774,000 1,786,031
41 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ------------------------ ------------------------ -- COLUMBIA BALANCED FUND, INC. -- ------
SHARES OR PRINCIPAL AMOUNT VALUE(1) ------------- ------------- FNMA GTD. REMIC PASS THRU CTF. REMIC TR. 1994-43 CL. E 6.500% 02/25/2024.............. $ 2,620,171 $ 2,624,232 FNMA GTD. REMIC PASS THRU CTF. REMIC TR. 1997-G4 CL. C 7.500% 06/17/2024.............. 7,820,000 7,978,574 FNMA GTD. REMIC PASS THRU CTF. REMIC TR. 1997-G1 CL. B 7.500% 06/20/2024.............. 4,680,000 4,854,440 FNMA GTD. REMIC PASS THRU CTF. REMIC TR. 1997-27 CL. B 7.000% 02/18/2025.............. 3,020,000 3,047,268 FNMA GTD. REMIC PASS THRU CTF. REMIC TR. 1997-17 CL. PE 7.000% 01/18/2026.............. 1,870,000 1,935,985 FNMA GTD. REMIC PASS THRU CTF. REMIC TR. 1997-63 CL. PH 7.000% 07/18/2026.............. 8,290,000 8,768,658 FNMA GTD. REMIC PASS THRU CTF. REMIC TR. 1998-61 CL. PK 6.000% 12/25/2026.............. 4,670,000 4,664,202 FNMA GTD. REMIC PASS THRU CTF. REMIC TR. 1998-63 CL. PG 6.000% 03/25/2027.............. 2,478,000 2,474,916 FNMA GTD. REMIC PASS THRU CTF. REMIC TR. 1997-39 CL. B 7.500% 05/17/2027.............. 1,530,000 1,566,296 FNMA GTD. REMIC PASS THRU CTF. REMIC TR. 1997-68 CL. PJ 7.000% 10/18/2027.............. 3,000,000 3,094,980 ------------- 52,048,805 ------------- FHLMC (4.3%) FHLMC GNMA MULTICLASS MTG. PARTN. CTFS. GTD. SERIES G40 CL. N 6.500% 05/17/2021................ 7,180,000 7,227,510 FHLMC GNMA MULTICLASS MTG. PARTN. CTFS. GTD. SERIES G62 CL. B 7.500% 05/20/2024................ 4,066,000 4,145,694 FHLMC MULTICLASS MTG. PARTN. CTFS. GTD. SERIES 1933 CL. VC 7.550% 03/15/2012................ 2,950,000 3,091,954 FHLMC MULTICLASS MTG. PARTN. CTFS. GTD. SERIES 2065 CL. PG 6.000% 04/15/2021................ $ 490,000 $ 494,743 SHARES OR PRINCIPAL AMOUNT VALUE(1) ------------- ------------- FHLMC MULTICLASS MTG. PARTN. CTFS. GTD. SERIES 1543 CL. XN 7.000% 07/15/2023................ 5,617,000 5,927,608 FHLMC MULTICLASS MTG. PARTN. CTFS. GTD. SERIES 1763 CL. H 8.250% 07/15/2023................ 130,000 135,102 FHLMC MULTICLASS MTG. PARTN. CTFS. GTD. SERIES 1895 CL. B 7.500% 12/15/2023................ 3,940,000 4,009,935 FHLMC MULTICLASS MTG. PARTN. CTFS. GTD. SERIES 1904 CL. C 7.250% 08/15/2024................ 3,490,000 3,553,358 FHLMC MULTICLASS MTG. PARTN. CTFS. GTD. SERIES 1910 CL. D 8.000% 11/15/2024................ 2,043,000 2,097,480 FHLMC MULTICLASS MTG. PARTN. CTFS. GTD. SERIES 1995 CL. A 7.500% 08/20/2027................ 7,350,000 7,597,960 FHLMC MULTICLASS MTG. PARTN. CTFS. GTD. SERIES 2116 CL. VC 6.000% 01/15/2029................ 4,210,000 4,078,437 ------------- 42,359,781 ------------- OTHER AGENCY COLLATERALIZED MORTGAGE OBLIGATION (0.1%) PUERTO RICO HOUSING FINANCE CORP. SERIES A CL. 4 9.000% 07/20/2017................ 357,612 357,612 ------------- TOTAL U.S. GOVERNMENT SECURITIES (COST $209,300,337)............... 214,580,150 ------------- CORPORATE BONDS (11.7%) INDUSTRIAL (8.8%) BASIC INDUSTRY & MANUFACTURING (1.3%) ALUMINUM CO. OF AMERICA SERIES B 6.500% 06/15/2018.............. 4,150,000 4,185,400 CATERPILLAR FINANCIAL SERVICES CORP. MEDIUM TERM NOTES 5.800% 03/15/2000.............. 3,890,000 3,912,834 TYCO INTERNATIONAL GROUP S.A. 6.250% 06/15/2003.............. $ 4,500,000 $ 4,546,035 ------------- 12,644,269 -------------
42 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ------------------------ ------------------------ -- COLUMBIA BALANCED FUND, INC. -- ------
SHARES OR PRINCIPAL AMOUNT VALUE(1) ------------- ------------- BUSINESS & CONSUMER SERVICES (1.6%) ALLIED WASTE NORTH AMERICA, INC. (144A) 7.625% 01/01/2006................ 1,000,000 1,010,000 COMCAST CORP. 9.500% 01/15/2008................ 2,140,000 2,238,825 JONES INTERCABLE, INC. 8.875% 04/01/2007................ 1,435,000 1,528,275 LENFEST COMMUNICATIONS, INC. 8.375% 11/01/2005................ 650,000 702,000 SERVICE CORP. INTERNATIONAL 6.300% 03/15/2003................ 5,000,000 5,048,250 USA WASTE SERVICES, INC. 6.125% 07/15/2001................ 4,450,000 4,477,590 USA NETWORKS, INC. (144A) 6.750% 11/15/2005................ 1,000,000 996,140 ------------- 16,001,080 ------------- CONSUMER CYCLICAL (1.6%) ECKERD CORP. 9.250% 02/15/2004................ 4,000,000 4,198,760 HILTON HOTELS CORP. 7.375% 06/01/2002................ 3,500,000 3,560,865 WAL-MART STORES, INC. 5.650% 02/01/2000................ 7,375,000 7,406,860 ------------- 15,166,485 ------------- CONSUMER STAPLES (2.2%) AETNA SERVICES, INC. 7.625% 08/15/2026................ 3,650,000 3,750,849 AMERICAN HOME PRODUCTS CORP. 7.700% 02/15/2000................ 2,975,000 3,058,300 AMGEN, INC. 8.125% 04/01/2097................ 2,550,000 3,071,858 COCA-COLA ENTERPRISES, INC. 6.750% 01/15/2038................ 4,150,000 4,274,666 PHILIP MORRIS COS., INC. 6.150% 03/15/2000................ 5,600,000 5,646,480 WESTPOINT STEVENS, INC. 7.875% 06/15/2005................ $ 1,575,000 $ 1,598,625 ------------- 21,400,778 ------------- ENERGY (1.6%) GULF CANADA RESOURCES LTD. 9.625% 07/01/2005................ 2,500,000 2,475,000 K N ENERGY, INC. 6.650% 03/01/2005................ 4,075,000 4,117,502 SHARES OR PRINCIPAL AMOUNT VALUE(1) ------------- ------------- OCCIDENTAL PETROLEUM CORP. 6.400% 04/01/2003................ 5,000,000 4,920,850 7.375% 11/15/2008................ 4,150,000 4,226,526 ------------- 15,739,878 ------------- TRANSPORTATION (0.5%) ALLIED HOLDING, INC. SERIES B 8.625% 10/01/2007................ 500,000 507,500 CANADIAN NATIONAL RAILWAY CO. 6.450% 07/15/2006................ 675,000 696,040 FEDERAL EXPRESS CORP. PASS THRU TRUST SERIES 1997-1C 7.650% 01/15/2014................ 2,167,837 2,290,254 TEEKAY SHIPPING CORP. GTD. 1ST PFD. SHIP. MTG. NOTES 8.320% 02/01/2008................ 1,000,000 990,000 ------------- 4,483,794 ------------- FINANCIAL (2.8%) FINANCE (0.9%) BEAR STEARNS COS., INC. MEDIUM TERM NOTES 5.404% 10/10/2000.............. 3,825,000 3,792,105 HARTFORD LIFE, INC. 7.650% 06/15/2027.............. 2,555,000 2,846,730 MORGAN STANLEY DEAN WITTER DISCOVER CO. MEDIUM TERM NOTES 5.750% 02/15/2001.............. 2,100,000 2,107,896 ------------- 8,746,731 ------------- BANKS-DOMESTIC (0.5%) FIRST SECURITY CORP. 5.875% 11/01/2003.............. 1,325,000 1,321,317 MELLON FINANCIAL CO. 5.750% 11/15/2003.............. 3,725,000 3,750,814 ------------- 5,072,131 ------------- BANKS-FOREIGN (0.4%) ABN AMRO BANK N. V. CHICAGO 7.250% 05/31/2005.............. $ 3,575,000 $ 3,827,860 ------------- REAL ESTATE INVESTMENT TRUSTS (1.0%) SECURITY CAPITAL INDUSTRIAL TRUST MEDIUM TERM NOTES 7.810% 02/01/2015.............. 3,250,000 3,173,690 SIMON PROPERTY GROUP L.P. 6.625% 06/15/2003.............. 4,475,000 4,399,551
43 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ------------------------ ------------------------ -- COLUMBIA BALANCED FUND, INC. -- ------
SHARES OR PRINCIPAL AMOUNT VALUE(1) ------------- ------------- SPIEKER PROPERTIES L.P. 6.900% 01/15/2004.............. 2,450,000 2,446,546 ------------- 10,019,787 ------------- UTILITY (0.1%) TELECOMMUNICATIONS WORLDCOM, INC. 8.875% 01/15/2006.............. 1,000,000 1,092,970 ------------- TOTAL CORPORATE BONDS (COST $113,049,889)............... 114,195,763 ------------- OTHER SECURITIZED LOANS (10.0%) ASSET BACKED SECURITIES (2.5%) CITYSCAPE HOME EQUITY LOAN TRUST SERIES 1997-B CL. A-7 7.410% 05/25/2028.............. 4,150,000 4,344,788 IMC HOME EQUITY LOAN TRUST SERIES 1997-3 CL. A-6 7.520% 08/20/2028.............. 2,310,000 2,398,739 THE MONEY STORE RESIDENTIAL TRUST SERIES 1997-II CL. A-4 7.385% 03/15/2029.............. 2,702,000 2,845,471 NEW CENTURY HOME EQUITY LOAN TRUST SERIES 1997-NC5 CL. A-5 7.130% 10/25/2028.............. 11,760,000 12,323,786 SALOMON BROTHERS MORTGAGE SECURITIES VII, INC SERIES 1996-LB2 CL. A-8 7.800% 10/25/2026.............. 2,650,000 2,839,793 ------------- 24,752,577 ------------- COLLATERALIZED MORTGAGE OBLIGATIONS (7.0%) BEAR STEARNS MORTGAGE SECURITIES, INC. SERIES 1996-2 CL. A-1 6.119% 01/25/2025.............. 4,029,476 4,072,278 BEAR STEARNS MORTGAGE SECURITIES, INC. SERIES 1996-8 CL. A-9 7.600% 11/25/2027.............. $ 4,338,054 $ 4,331,243 CMC SECURITIES CORP. IV SERIES 1997-2 CL. IA-12 7.250% 11/25/2027.............. 6,675,000 6,962,243 DLJ MORTGAGE ACCEPTANCE CORP. SERIES 1998-2 CL. II-A-8 6.80% 06/25/2028............... 3,720,000 3,820,492 SHARES OR PRINCIPAL AMOUNT VALUE(1) ------------- ------------- FIRST ALLIANCE MORTGAGE TRUST SERIES 1996-1 CL. A-1 7.340% 06/20/2027.............. 1,123,778 1,140,005 FIRST UNION RESIDENTIAL SECURITIZATION TRANSACTIONS, INC. SERIES 1998-A CL. A-3 7.000% 08/25/2028.............. 1,510,000 1,548,989 GE CAPITAL MORTGAGE SERVICES, INC. SERIES 1997-8 CL. A-6 7.250% 10/25/2027.............. 2,525,000 2,532,878 HEADLANDS MORTGAGE SECURITIES, INC. SERIES 1997-3 CL. 1-A-6 7.000% 07/25/2027.............. 5,240,000 5,369,594 INDEPENDENT NATIONAL MORTGAGE CORP. SERIES 1996-D CL. A4 7.000% 05/25/2026.............. 1,905,000 1,913,296 MORTGAGE OBLIGATION STRUCTURED TRUST (144A) SERIES 1993-1 CL. B1 10.640% 10/25/2018............. 2,223,996 2,298,700 NORWEST ASSET SECURITIES CORP. SERIES 1997-16 CL. A-2 6.750% 10/25/2027.............. 7,015,900 7,080,341 NORWEST ASSET SECURITIES CORP. SERIES 1998-32 CL. A-1 6.000% 12/25/2028.............. 12,552,035 12,409,745 PNC MORTGAGE SECURITIES CORP. SERIES 1997-4 CL. 2PP-2 7.500% 07/25/2027.............. 2,750,000 2,909,064 PNC MORTGAGE SECURITIES CORP. SERIES 1997-4 CL. 2PP-4 7.250% 07/25/2027.............. 3,930,736 3,969,002 RESIDENTIAL FUNDING MORTGAGE SECURITIES I, INC. SERIES 1997-S7 CL. A-3 7.500% 05/25/2027.............. $ 3,171,000 $ 3,239,916 SACO I, INC. (144A) SERIES 1995-1 CL. A 6.054% 9/25/2024............... 2,596,304 2,596,290
44 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ------------------------ ------------------------ -- COLUMBIA BALANCED FUND, INC. -- ------
SHARES OR PRINCIPAL AMOUNT VALUE(1) ------------- ------------- STRUCTURED ASSET MORTGAGE INVESTMENTS, INC. SERIES 1998-8 CL. 1-8-A 7.000% 07/25/2028.............. 1,634,000 1,705,037 ------------- 67,899,113 ------------- COMMERCIAL MORTGAGE BACKED SECURITIES (0.5%) COMMERCIAL CAPITAL ACCESS ONE, INC. SERIES 3 CL. A-2 6.615% 11/15/2028................ 5,000,000 5,059,000 ------------- TOTAL OTHER SECURITIZED LOANS (COST $95,523,793)................ 97,710,690 ------------- MUNICIPAL BONDS (0.3%) TAXABLE BONDS CHICAGO IL. TAX INCREMENT TAXABLE ALLOCATION CENTRAL LOOP B 6.375% 06/01/2003.............. 2,250,000 2,331,562 ------------- TOTAL BONDS (COST $420,201,555)............... 428,818,165 ------------- TOTAL INVESTMENTS, EXCLUDING TEMPORARY CASH INVESTMENT (COST $797,729,841)............... 960,497,499 ------------- REPURCHASE AGREEMENT (0.2%) J.P. MORGAN SECURITIES, INC. 4.970% DATED 12/31/1998, DUE 01/04/1999 IN THE AMOUNT OF $2,336,514. COLLATERALIZED BY U.S TREASURY BILLS DUE 06/24/1999, U.S TREASURY BONDS 6.500% DUE 11/15/2026, U.S. TREASURY NOTES 5.375% DUE 06/30/2000 TO 07/31/2000. (COST $2,336,196)................. $ 2,336,196 $ 2,336,196 ------------- TOTAL INVESTMENTS (98.7%) (COST $800,066,037)................... 962,833,695 RECEIVABLES LESS LIABILITIES (1.3%).... 12,547,063 ------------- NET ASSETS (100.0%).................... $ 975,380,758 ------------- -------------
(1) See Note 1 of Notes to Financial Statements. * Non-income producing. See Notes to Financial Statements. 45 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - -------------- -------------- -- COLUMBIA U.S. GOVERNMENT SECURITIES FUND, INC. -- ------
PRINCIPAL DECEMBER 31, 1998 AMOUNT VALUE(1) ------------ ------------ U.S. TREASURY NOTES (97.4%) 6.875% 08/31/1999................ $ 9,950,000 $ 10,089,927 6.375% 03/31/2001................ 10,750,000 11,143,052 6.625% 06/30/2001................ 4,150,000 4,343,237 6.375% 09/30/2001................ 13,350,000 13,936,145 ------------ TOTAL U.S. TREASURY NOTES (COST $39,239,616)................ 39,512,361 REPURCHASE AGREEMENT (1.6%) J.P. MORGAN SECURITIES, INC. 4.970% DATED 12/31/1998, DUE 01/04/1999 IN THE AMOUNT OF $674,668. COLLATERALIZED BY U.S. TREASURY BILLS DUE 06/24/1999, U.S. TREASURY BONDS 6.500% DUE 11/15/2026, U.S. TREASURY NOTES 5.375% DUE 06/30/2000 TO 07/31/2000. (COST $674,576)................... 674,576 674,576 ------------ TOTAL INVESTMENTS (99.0%) (COST $39,914,192).................... 40,186,937 RECEIVABLES LESS LIABILITIES (1.0%).... 390,929 ------------ NET ASSETS (100.0%).................... $ 40,577,866 ------------ ------------
(1) See Note 1 of Notes to Financial Statements. See Notes to Financial Statements. 46 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ---------------- ---------------- -- COLUMBIA FIXED INCOME SECURITIES FUND, INC. -- ------
PRINCIPAL DECEMBER 31, 1998 AMOUNT VALUE(1) ------------ ------------- U.S. GOVERNMENT SECURITIES (52.3%) U.S. TREASURY NOTES & BONDS (10.7%) U.S. TREASURY BONDS 8.875% 08/15/2017................ $ 8,560,000 $ 12,053,550 8.125% 08/15/2019................ 21,080,000 28,131,913 7.625% 11/15/2022................ 2,350,000 3,049,492 U.S. TREASURY NOTES 7.000% 07/15/2006................ 1,800,000 2,054,250 ------------- 45,289,205 ------------- U.S. AGENCY BONDS (1.0%) FEDERAL NATIONAL MORTGAGE ASSOCIATION 6.000% 05/15/2008................ 4,000,000 4,222,480 ------------- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) (2.0%) 6.000% 06/15/2028 - 11/15/2028... 6,850,223 6,790,283 6.500% 10/15/2028................ 1,732,879 1,751,291 ------------- 8,541,574 ------------- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA II) (4.5%) 6.000% 12/20/2028................ 13,048,200 12,848,432 6.500% 09/20/2028 - 10/20/2028... 6,089,187 6,117,715 ------------- 18,966,147 ------------- FEDERAL HOUSING ADMINISTRATION (FHA) (0.8%) FHA INSURED PROJECT POOL #051-11078 8.350% 04/01/2030................ 2,203,769 2,392,989 FHA INSURED PROJECT POOL #092-35499 8.450% 11/15/2031................ 785,362 814,813 ------------- 3,207,802 ------------- AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS (33.3%) GNMA (3.8%) GNMA GTD. REMIC PASS THRU SECS. REMIC TR. 1996-15 CL. B 7.500% 08/20/2020.............. 2,450,075 2,464,800 GNMA GTD. REMIC PASS THRU SECS. REMIC TR. 1996-23 CL. C 7.500% 12/20/2022.............. 3,607,000 3,726,801 GNMA GTD. REMIC PASS THRU SECS. REMIC TR. 1997-2 CL. K 7.500% 01/20/2024.............. 2,410,000 2,498,734 GNMA GTD. REMIC PASS THRU SECS. REMIC TR. 1998-1 CL. A 7.000% 01/20/2028.............. 2,050,000 2,089,688 PRINCIPAL AMOUNT VALUE(1) ------------ ------------- GNMA GTD. REMIC PASS THRU SECS. REMIC TR. 1998-9 CL. B 6.850% 12/20/2025.............. $ 2,260,000 $ 2,293,629 GNMA GTD. REMIC PASS THRU SECS. REMIC TR. 1998-20 CL. B 7.000% 3/20/2026............... 2,996,000 3,080,442 ------------- 16,154,094 ------------- FNMA (21.5%) FNMA GTD. REMIC PASS THRU CTF. REMIC TR. 1994-10 CL. KC 6.500% 10/25/2010.............. 1,941,125 1,995,108 FNMA GTD. REMIC PASS THRU CTF. REMIC TR. 1997-G1 CL. B 7.500% 06/20/2024.............. 7,760,000 8,049,243 FNMA GTD. REMIC PASS THRU CTF. REMIC TR. 1997-17 CL. PE 7.000% 01/18/2026.............. 3,980,000 4,120,438 FNMA GTD. REMIC PASS THRU CTF. REMIC TR. 1997-24 CL. YL 7.000% 04/18/2027.............. 3,406,000 3,463,404 FNMA GTD. REMIC PASS THRU CTF. REMIC TR. 1997-G4 CL. B 7.500% 02/17/2021.............. 1,900,000 1,919,027 FNMA GTD. REMIC PASS THRU CTF. REMIC TR. 1997-G4 CL. C 7.500% 06/17/2024.............. 7,693,000 7,848,999 FNMA GTD. REMIC PASS THRU CTF. REMIC TR. 1997-39 CL. B 7.500% 05/17/2027.............. 2,673,000 2,736,412 FNMA GTD. REMIC PASS THRU CTF. REMIC TR. 1997-38 CL. G 7.500% 05/17/2026.............. 1,628,584 1,644,243 FNMA GTD. REMIC PASS THRU CTF. REMIC TR. 1997-38 CL. H 7.500% 05/17/2027.............. 1,766,000 1,815,054 FNMA GTD. REMIC PASS THRU CTF. REMIC TR. 1997-43 CL. B 7.500% 08/18/2025.............. 10,000,000 10,277,462 FNMA GTD. REMIC PASS THRU CTF. REMIC TR. 1997-44 CL. PG 7.000% 02/18/2024.............. 4,120,000 4,266,295 FNMA GTD. REMIC PASS THRU CTF. REMIC TR. 1997-G5 CL. VD 7.250% 04/17/2010.............. 3,600,000 3,709,116 FNMA GTD. REMIC PASS THRU CTF. REMIC TR. 1997-63 CL. PH 7.000% 07/18/2026.............. 7,540,000 7,975,354
47 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ---------------- ---------------- -- COLUMBIA FIXED INCOME SECURITIES FUND, INC. -- ------
PRINCIPAL AMOUNT VALUE(1) ------------ ------------- U.S. GOVERNMENT SECURITIES (CONTINUED) FNMA GTD. REMIC PASS THRU CTF. REMIC TR. 1997-75 CL. B 6.500% 09/18/2026.............. $ 3,070,660 $ 3,126,564 FNMA GTD. REMIC PASS THRU CTF. REMIC TR. 1997-74 CL. D 7.500% 09/20/2023.............. 3,831,963 3,896,737 FNMA GTD. REMIC PASS THRU CTF. REMIC TR. 1998-49 CL. TD 6.250% 12/18/2023.............. 5,950,000 6,035,858 FNMA GTD. REMIC PASS THRU CTF. REMIC TR. 1998-44 CL. VB 6.500% 05/18/2009.............. 4,552,730 4,666,947 FNMA GTD. REMIC PASS THRU CTF. REMIC TR. 1998-44 CL. VC 6.500% 11/18/2015.............. 4,127,564 4,229,647 FNMA GTD. REMIC PASS THRU CTF. REMIC TR. 1998-61 CL. PK 6.000% 12/25/2026.............. 8,860,000 8,848,999 ------------- 90,624,907 ------------- FHLMC (7.9%) FHLMC MULTICLASS MTG. PARTN. CTFS. GTD. SERIES 1558 CL. C 6.500% 07/15/2023.............. 2,141,000 2,186,972 FHLMC MULTICLASS MTG. PARTN. CTFS. GTD. SERIES 1995 CL. A 7.500% 08/20/2027.............. 3,300,000 3,411,329 FHLMC MULTICLASS MTG. PARTN. CTFS. GTD. SERIES 2068 CL. CL 6.500% 03/15/2026.............. 4,016,000 4,118,434 FHLMC MULTICLASS MTG. PARTN. CTFS. GTD. SERIES 2065 CL. PB 6.250% 01/15/2024.............. 1,050,000 1,064,694 FHLMC MULTICLASS MTG. PARTN. CTFS. GTD. SERIES 2065 CL. PG 6.000% 04/15/2021.............. 740,000 747,163 FHLMC MULTICLASS MTG. PARTN. CTFS. GTD. SERIES 2091 CL. PF 6.000% 02/15/2027.............. 4,172,000 4,173,791 FHLMC MULTICLASS MTG. PARTN. CTFS. GTD. SERIES 1617 CL. PJ 6.200% 01/15/2023.............. 4,030,000 4,080,287 FHLMC MULTICLASS MTG. PARTN. CTFS. GTD. SERIES 1763 CL. H 8.250% 07/15/2023.............. 692,000 719,161 FHLMC GNMA MULTICLASS MTG. PARTN. CTFS. GTD. SERIES G40 CL. N 6.500% 05/17/2021.............. 4,700,000 4,731,100 PRINCIPAL AMOUNT VALUE(1) ------------ ------------- FHLMC MULTICLASS MTG. PARTN. CTFS. GTD. SERIES 1910 CL. D 8.000% 11/15/2024.............. $ 2,020,000 $ 2,073,866 FHLMC MULTICLASS MTG. PARTN. CTFS. GTD. SERIES 2116 CL. VC 6.000% 01/15/2029.............. 6,280,000 6,083,750 ------------- 33,390,547 ------------- OTHER AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS (0.1%) PUERTO RICO HOUSING FINANCE CORP. SERIES A CL. 4 9.000% 07/20/2017.............. 647,568 647,568 ------------- TOTAL U.S. GOVERNMENT SECURITIES (COST $214,343,299)............... 221,044,324 ------------- CORPORATE BONDS (30.2%) INDUSTRIAL (16.0%) BASIC INDUSTRY & MANUFACTURING (5.1%) FOSTER WHEELER CORP. 6.750% 11/15/2005.............. 3,025,000 2,831,461 GENERAL ELECTRIC CAPITAL CORP. MEDIUM TERM NOTES 6.350% 09/15/2001.............. 3,200,000 3,296,064 ICI WILMINGTON, INC. 7.050% 09/15/2007.............. 3,805,000 3,897,994 PRECISION CASTPARTS CORP. 6.750% 12/15/2007.............. 1,650,000 1,682,406 RAYTHEON CO. 5.700% 11/01/2003.............. 3,875,000 3,869,342 TYCO INTERNATIONAL GROUP S.A. 6.125% 06/15/2001.............. 500,000 504,815 6.250% 06/15/2003.............. 5,575,000 5,632,032 ------------- 21,714,114 ------------- BUSINESS & CONSUMER SERVICES (0.7%) HERITAGE MEDIA CORP. 8.750% 02/15/2006.............. 1,250,000 1,312,500 HOLLINGER INTERNATIONAL PUBLISHING, INC. 8.625% 03/15/2005.............. 300,000 316,500 LENFEST COMMUNICATIONS, INC. 8.375% 11/01/2005.............. 1,350,000 1,458,000 ------------- 3,087,000 ------------- CONSUMER CYCLICAL (3.0%) GENERAL MOTORS ACCEPTANCE CORP. MEDIUM TERM NOTES 5.330% 10/20/2000.............. 4,000,000 3,999,200
48 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ---------------- ---------------- -- COLUMBIA FIXED INCOME SECURITIES FUND, INC. -- ------
PRINCIPAL AMOUNT VALUE(1) ------------ ------------- CORPORATE BONDS (CONTINUED) HILTON HOTELS CORP. 7.375% 06/01/2002.............. $ 4,000,000 $ 4,069,560 SEARS ROEBUCK ACCEPTANCE CORP. MEDIUM TERM NOTES 6.400% 10/11/2000.............. 4,525,000 4,600,432 ------------- 12,669,192 ------------- CONSUMER STAPLES (4.7%) AETNA SERVICES, INC. 7.625% 08/15/2026.............. 5,000,000 5,138,150 COCA-COLA ENTERPRISES, INC. 6.750% 01/15/2038.............. 3,850,000 3,965,654 NABISCO, INC. 6.000% 02/15/2001.............. 1,875,000 1,852,725 6.700% 06/15/2002.............. 3,750,000 3,750,150 PROCTER & GAMBLE CO. 5.250% 09/15/2003.............. 3,965,000 3,964,762 TENET HEALTHCARE CORP. 8.625% 12/01/2003.............. 990,000 1,037,025 ------------- 19,708,466 ------------- ENERGY (1.0%) GULF CANADA RESOURCES LTD. 9.625% 07/01/2005.............. 1,250,000 1,237,500 NOBLE AFFILIATES, INC. 7.250% 08/01/2097.............. 2,825,000 2,628,352 ------------- 3,865,852 ------------- TRANSPORTATION (1.5%) FEDERAL EXPRESS CORP. PASS THRU TRUST SERIES 1997-1C 7.650% 01/15/2014.............. 2,266,375 2,394,357 FEDERAL EXPRESS CORP. PASS THRU TRUST SERIES 1998-1B 6.845% 01/15/2019.............. 4,025,000 4,130,938 ------------- 6,525,295 ------------- FINANCIAL (8.2%) FINANCE (1.2%) EQUITABLE COS., INC. 9.000% 12/15/2004.............. 905,000 1,047,447 GOLDMAN SACHS GROUP L.P. (144A) 7.200% 03/01/2007.............. 3,700,000 3,948,196 ------------- 4,995,643 ------------- PRINCIPAL AMOUNT VALUE(1) ------------ ------------- BANKS-DOMESTIC (3.3%) AMSOUTH BANK N.A. BIRMINGHAM 6.450% 02/01/2018.............. $ 3,100,000 $ 3,229,394 BANKAMERICA CORP. 5.313% 02/20/2002.............. 3,500,000 3,471,460 FIRST BANK SYSTEM, INC. 5.625% 11/26/2010.............. 7,230,000 7,197,899 ------------- 13,898,753 ------------- BANKS-FOREIGN (0.4%) SWISS BANK CORP. N.Y. 7.250% 09/01/2006.............. 1,825,000 1,971,675 ------------- REAL ESTATE INVESTMENT TRUSTS (3.3%) EOP OPERATING L.P. 6.376% 02/15/2002.............. 3,925,000 3,888,811 HEALTH CARE PROPERTY INVESTMENTS, INC. 6.500% 02/15/2006.............. 6,400,000 5,894,016 SIMON PROPERTY GROUP L.P. 6.625% 06/15/2003.............. 4,150,000 4,080,031 ------------- 13,862,858 ------------- UTILITIES (4.6%) ELECTRIC (1.6%) CALENERGY, INC. 9.875% 06/30/2003.............. 1,000,000 1,119,840 NIAGARA MOHAWK POWER CORP. SERIES D 7.250% 10/01/2002.............. 1,950,000 1,971,918 NORTHERN INDIANA PUBLIC SERVICE CO. MEDIUM TERM NOTES 6.750% 06/01/2000.............. 2,500,000 2,552,275 6.900% 06/01/2000.............. 1,250,000 1,278,638 ------------- 6,922,671 ------------- TELECOMMUNICATIONS (2.3%) FLAG LTD. 8.250% 01/30/2008.............. 500,000 490,000 MCI COMMUNICATIONS CORP. 6.125% 04/15/2002.............. 4,755,000 4,827,371 US WEST CAPITAL FUNDING, INC. 6.875% 07/15/2028.............. 3,250,000 3,470,773 WORLDCOM, INC. 8.875% 01/15/2006.............. 900,000 983,673 ------------- 9,771,817 -------------
49 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ---------------- ---------------- -- COLUMBIA FIXED INCOME SECURITIES FUND, INC. -- ------
PRINCIPAL AMOUNT VALUE(1) ------------ ------------- CORPORATE BONDS (CONTINUED) OTHER (0.7%) ENRON CORP. 6.950% 07/15/2028.............. $ 2,850,000 $ 2,835,579 ------------- YANKEE (1.4%) AFRICAN DEVELOPMENT BANK MEDIUM TERM NOTES 8.625% 05/01/2001................ 5,300,000 5,728,240 ------------- TOTAL CORPORATE BONDS (COST $126,547,770)............... 127,557,155 ------------- OTHER SECURITIZED LOANS (15.8%) ASSET BACKED SECURITIES (3.8%) EMPIRE FUNDING HOME LOAN OWNER TRUST SERIES 1997-2 CL. A-5 7.960% 09/25/2023................ 2,946,000 3,113,491 IMC HOME EQUITY LOAN TRUST SERIES 1997-3 CL. A-6 7.520% 08/20/2028................ 2,520,000 2,616,806 SALOMON BROTHERS MORTGAGE SECURITIES VII, INC. SERIES 1996-LB2 CL. A-8 7.800% 10/25/2026................ 1,000,000 1,071,620 SAXON ASSET SECURITIES CO. SERIES 1996-1 CL. A-2 8.060% 09/25/2027................ 6,265,000 6,568,476 STRUCTURED ASSET SECURITIES CORP. SERIES 1997-4 CL. 2-A2 7.000% 12/25/2027................ 2,430,680 2,489,637 ------------- 15,860,030 ------------- COLLATERALIZED MORTGAGE OBLIGATIONS (10.7%) BEAR STEARNS MORTGAGE SECURITIES, INC. SERIES 1996-2 CL. A-1 6.119% 1/25/2025................. 3,879,258 3,920,464 CMC SECURITIES CORP. IV SERIES 1997-2 CL. IA-12 7.250% 11/25/2027................ 3,150,000 3,285,553 DLJ MORTGAGE ACCEPTANCE CORP. SERIES 1998-2 CL. II-A-8 6.80% 06/25/2028................. 4,370,000 4,488,051 GE CAPITAL MORTGAGE SERVICES, INC. SERIES 1997-8 CL. A-6 7.250% 10/25/2027................ 2,495,000 2,502,785 MORTGAGE OBLIGATION STRUCTURED TRUST (144A) SERIES 1993-1 CL. B1 10.642% 10/25/2018............... 1,696,096 1,753,068 NORWEST ASSET SECURITIES CORP. SERIES 1997-16 CL. A-2 6.750% 10/25/2027................ 14,140,000 14,269,876 PRINCIPAL AMOUNT VALUE(1) ------------ ------------- NORWEST ASSET SECURITIES CORP. SERIES 1998-32 CL. A-1 6.000% 12/25/2028................ $ 7,259,610 $ 7,177,315 PNC MORTGAGE SECURITIES CORP. SERIES 1997-4 CL. 2PP-2 7.500% 07/25/2027................ 3,035,000 3,210,549 PNC MORTGAGE SECURITIES CORP. SERIES 1997-4 CL. 2PP-4 7.250% 07/25/2027................ 1,253,242 1,265,442 RESIDENTIAL FUNDING MORTGAGE SECURITIES, INC. SERIES 1993-S45 CL. A-10 8.000% 12/25/2023................ 1,176,268 1,189,865 STRUCTURED ASSET MORTGAGE INVESTMENTS, INC. SERIES 1998-8 CL. 1-8-A 7.000% 07/25/2028................ 2,000,000 2,086,948 ------------- 45,149,916 ------------- COMMERCIAL MORTGAGE BACKED SECURITIES (1.3%) COMMERCIAL CAPITAL ACCESS ONE, INC. SERIES 3 CL. A-2 6.615% 11/15/2028................ 5,600,000 5,666,080 ------------- TOTAL OTHER SECURITIZED LOANS (COST $65,058,576)................ 66,676,026 ------------- TOTAL INVESTMENTS, EXCLUDING TEMPORARY CASH INVESTMENT (COST $405,960,645)............... 415,277,505 ------------- REPURCHASE AGREEMENT (2.9%) J.P. MORGAN SECURITIES, INC. 4.970% DATED 12/31/1998, DUE 01/04/1999 IN THE AMOUNT OF $12,154,499. COLLATERALIZED BY U.S TREASURY BILLS DUE 06/24/1999, U.S TREASURY BONDS 6.500% DUE 11/15/2026, U.S. TREASURY NOTES 5.375% DUE 06/30/2000 TO 07/31/2000 (COST $12,152,844)................ 12,152,844 12,152,844 ------------- TOTAL INVESTMENTS (101.2%) (COST $418,113,489)................... 427,430,349 RECEIVABLES LESS LIABILITIES (-1.2%)... (5,100,218) ------------- NET ASSETS (100.0%).................... $ 422,330,131 ------------- -------------
(1) See Note 1 of Notes to Financial Statements. See Notes to Financial Statements. 50 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - --------------------- --------------------- -- COLUMBIA MUNICIPAL BOND FUND, INC. -- ------
PRINCIPAL DECEMBER 31, 1998 AMOUNT VALUE(1) ----------- ------------- GENERAL OBLIGATION BONDS (40.3%) STATE OF OREGON GENERAL OBLIGATION (7.3%) BOARD OF HIGHER EDUCATION BACCALAUREATE-D 4.875% 08/01/2019................ $2,000,000 $ 1,990,000 BOARD OF HIGHER EDUCATION DEFERRED INTEREST SERIES A 0.000% 08/01/2014................ 450,000 216,563 BOARD OF HIGHER EDUCATION REFUNDING SERIES B 6.250% 10/15/2012................ 740,000 797,350 ELDERLY & DISABLED HOUSING REFUNDING SERIES B 6.250% 08/01/2013................ 1,000,000 1,091,250 POLLUTION CONTROL SERIES C 5.625% 06/01/2013................ 1,595,000 1,614,937 5.900% 06/01/2014................ 2,485,000 2,525,381 VETERANS' WELFARE 11.000% 12/01/2000................ 865,000 982,856 0.000% 07/01/2001................ 1,200,000 1,093,500 9.000% 04/01/2002................ 900,000 1,041,750 6.000% 08/01/2002................ 2,000,000 2,150,000 6.000% 02/01/2004................ 720,000 790,200 9.000% 04/01/2004................ 280,000 346,150 9.000% 04/01/2005................ 1,060,000 1,352,825 8.250% 07/01/2005................ 520,000 646,750 9.000% 10/01/2005................ 1,640,000 2,125,686 7.250% 01/01/2007................ 1,485,000 1,793,137 9.200% 04/01/2007................ 2,390,000 3,211,563 8.250% 07/01/2007................ 540,000 693,900 9.200% 10/01/2007................ 1,250,000 1,701,563 7.300% 01/01/2008................ 255,000 313,650 8.000% 01/01/2008................ 1,220,000 1,560,075 7.300% 07/01/2008................ 1,125,000 1,397,813 8.000% 07/01/2008................ 580,000 749,650 9.200% 10/01/2008................ 250,000 348,437 5.850% 10/01/2015................ 1,015,000 1,110,156 5.200% 10/01/2018................ 2,000,000 2,025,000 ------------- 33,670,142 ------------- OREGON GENERAL OBLIGATION (15.6%) CLACKAMAS & WASHINGTON COUNTIES SCHOOL DISTRICT #3JT WEST LINN-WILSONVILLE 5.875% 10/01/2009................ 2,550,000 2,741,250 CLACKAMAS COMMUNITY COLLEGE DISTRICT 5.250% 12/01/2009................ 1,270,000 1,370,012 PRINCIPAL AMOUNT VALUE(1) ----------- ------------- CLACKAMAS COUNTY SCHOOL DISTRICT #7J LAKE OSWEGO SERIES A 5.300% 06/15/2005................ $1,000,000 $ 1,065,000 5.500% 06/15/2006................ 1,000,000 1,075,000 5.700% 06/15/2010................ 2,735,000 2,923,031 DESCHUTES COUNTY ADMINISTRATIVE SCHOOL DISTRICT #1 BEND-LAPINE 0.000% 02/01/2000................ 1,175,000 1,131,960 0.000% 02/01/2001................ 1,135,000 1,049,875 0.000% 02/01/2002................ 1,445,000 1,282,437 DESCHUTES COUNTY ADMINISTRATIVE SCHOOL DISTRICT #1 5.000% 12/01/2017................ 1,500,000 1,518,750 EUGENE PUBLIC SAFETY FACILITIES 6.000% 06/01/2005................ 850,000 946,687 5.625% 06/01/2013................ 1,295,000 1,395,362 JACKSON COUNTY SCHOOL DISTRICT #549C MEDFORD 5.375% 06/01/2012................ 1,200,000 1,254,000 LANE COUNTY AREA EDUCATION DISTRICT LANE COMMUNITY COLLEGE 5.300% 06/01/2007................ 1,000,000 1,083,750 4.850% 06/01/2008................ 4,080,000 4,299,300 5.000% 06/01/2009................ 1,000,000 1,063,750 LANE COUNTY SCHOOL DISTRICT #4J EUGENE 0.000% 01/01/2003................ 1,345,000 1,151,656 0.000% 01/01/2005................ 1,395,000 1,093,331 LANE COUNTY SCHOOL DISTRICT #4J EUGENE REFUNDING SERIES A 0.000% 07/01/2001................ 2,015,000 1,838,688 0.000% 07/01/2003................ 1,480,000 1,241,350 0.000% 07/01/2005................ 2,325,000 1,787,344 METRO OPEN SPACES PROGRAM SERIES C 5.100% 09/01/2009................ 2,375,000 2,499,688 METRO WASHINGTON PARK ZOO SERIES A 5.250% 01/15/2009................ 1,040,000 1,115,400 5.300% 01/15/2011................ 1,000,000 1,062,500 MULTNOMAH COUNTY PUBLIC IMPROVEMENTS 5.250% 10/01/2013................ 1,800,000 1,865,250 MULTNOMAH COUNTY SCHOOL DISTRICT #40 DAVID DOUGLAS 7.100% 06/01/2002................ 880,000 973,500
51 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - --------------------- --------------------- -- COLUMBIA MUNICIPAL BOND FUND, INC. -- ------
PRINCIPAL AMOUNT VALUE(1) ----------- ------------- OREGON GENERAL OBLIGATION (CONTINUED) MULTNOMAH COUNTY SCHOOL DISTRICT #7 REYNOLDS 5.250% 06/01/2011................ $1,500,000 $ 1,580,625 MULTNOMAH-CLACKAMAS COUNTIES SCHOOL DISTRICT #10JT GRESHAM 5.250% 06/01/2017................ 1,620,000 1,660,500 PORT OF PORTLAND SERIES A 0.000% 03/01/2007................ 3,000,000 2,137,500 PORTLAND COMMUNITY COLLEGE DISTRICT 0.000% 07/01/2007................ 2,025,000 1,420,031 PORTLAND PUBLIC IMPROVEMENTS SERIES A 5.750% 06/01/2014................ 1,855,000 1,931,519 PORTLAND RECREATIONAL FACILITIES IMPROVEMENTS SERIES A 5.750% 06/01/2012................ 1,370,000 1,477,888 5.750% 06/01/2013................ 1,345,000 1,450,919 5.750% 06/01/2015................ 1,155,000 1,245,956 PORTLAND RECREATIONAL FACILITIES IMPROVEMENTS SERIES B 5.500% 06/01/2009................ 2,115,000 2,276,269 5.750% 06/01/2014................ 1,750,000 1,887,813 5.750% 06/01/2015................ 2,955,000 3,187,706 TRI-COUNTY METROPOLITAN TRANSPORTATION DISTRICT LIGHT RAIL EXTENSION SERIES A 6.000% 07/01/2012................ 3,495,000 3,735,281 WASHINGTON & CLACKAMAS COUNTIES SCHOOL DISTRICT #23J TIGARD REFUNDING 5.400% 01/01/2010................ 1,720,000 1,806,000 WASHINGTON COUNTY DEFERRED INTEREST-OPERATIONS YARD FACILITIES OBLIGATION 0.000% 06/01/2003................ 1,000,000 833,750 WASHINGTON COUNTY REFUNDING 6.200% 12/01/2007................ 1,500,000 1,588,125 WASHINGTON COUNTY SCHOOL DISTRICT #48J BEAVERTON SERIES B 6.150% 06/01/2008................ 1,010,000 1,041,563 WASHINGTON COUNTY SCHOOL DISTRICT #48J BEAVERTON SERIES C 7.800% 06/01/2003................ 1,200,000 1,389,000 PRINCIPAL AMOUNT VALUE(1) ----------- ------------- WASHINGTON, MULTNOMAH & YAMHILL COUNTIES SCHOOL DISTRICT #1J 5.000% 11/01/2011................ $1,100,000 $ 1,155,000 WILSONVILLE LIMITED TAX IMPROVEMENT 5.000% 12/01/2020................ 1,325,000 1,326,656 ------------- 71,960,972 ------------- OREGON INSURED GENERAL OBLIGATION (17.4%) CENTRAL OREGON COMMUNITY 5.800% 06/01/2007................ 760,000 817,950 CHEMEKETA COMMUNITY COLLEGE DISTRICT REFUNDING 5.500% 06/01/2010................ 1,610,000 1,771,000 CHEMEKETA COMMUNITY COLLEGE DISTRICT SERIES B 5.600% 06/01/2014................ 1,180,000 1,267,143 CLACKAMAS & WASHINGTON COUNTIES SCHOOL DISTRICT #3JT 5.750% 06/01/2010................ 590,000 660,800 CLACKAMAS COUNTY SCHOOL DISTRICT #12 NORTH CLACKAMAS 4.100% 06/01/2008................ 670,000 667,487 5.250% 12/01/1999................ 2,750,000 2,842,812 CLATSOP COUNTY ADMINISTRATIVE SCHOOL DISTRICT #10 5.875% 07/01/2012................ 630,000 658,350 CROOK COUNTY SCHOOL DISTRICT 4.900% 02/01/2009................ 1,165,000 1,194,125 DESCHUTES & JEFFERSON COUNTIES SCHOOL DISTRICT #2J REDMOND REFUNDING 5.600% 06/01/2009................ 1,000,000 1,047,500 HOOD RIVER COUNTY SCHOOL DISTRICT 5.650% 06/01/2008................ 1,020,000 1,087,575 JOSEPHINE COUNTY SCHOOL DISTRICT #7 GRANTS PASS 5.700% 06/01/2013................ 2,000,000 2,147,500 KLAMATH COUNTY 5.100% 06/01/2008................ 1,015,000 1,088,587 5.150% 06/01/2009................ 700,000 748,125 LANE COUNTY SCHOOL DISTRICT #1 PLEASANT HILL 5.350% 12/01/2012................ 650,000 684,125 5.450% 12/01/2013................ 725,000 762,156
52 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - --------------------- --------------------- -- COLUMBIA MUNICIPAL BOND FUND, INC. -- ------
PRINCIPAL AMOUNT VALUE(1) ----------- ------------- OREGON INSURED GENERAL OBLIGATION (CONTINUED) LANE COUNTY SCHOOL DISTRICT #19 SPRINGFIELD REFUNDING 5.250% 10/15/2006................ $1,340,000 $ 1,443,850 6.000% 10/15/2012................ 740,000 837,125 6.000% 10/15/2014................ 1,310,000 1,504,863 LANE COUNTY SCHOOL DISTRICT #52 BETHEL 6.250% 12/01/2007................ 580,000 664,100 6.400% 12/01/2009................ 750,000 857,812 LINCOLN COUNTY SCHOOL DISTRICT 6.000% 06/15/2006................ 900,000 1,011,375 6.000% 06/15/2007................ 1,855,000 2,103,106 6.000% 06/15/2008................ 1,450,000 1,656,625 6.000% 06/15/2009................ 3,465,000 3,950,100 5.600% 06/15/2010................ 3,480,000 3,832,350 5.250% 06/15/2012................ 3,815,000 4,024,825 MALHEUR COUNTY SCHOOL DISTRICT #26 NYSSA 5.750% 06/01/2015................ 1,910,000 2,029,375 MARION COUNTY CERTIFICATES OF PARTICIPATION COURTHOUSE SQUARE PROJECT-SERIES A 4.45% 06/01/2010................. 430,000 430,000 MARION COUNTY SCHOOL DISTRICT #103C WOODBURN SERIES B 0.000% 11/01/2006................ 2,000,000 1,452,500 0.000% 11/01/2007................ 2,000,000 1,390,000 0.000% 11/01/2009................ 2,500,000 1,581,250 0.000% 11/01/2011................ 2,210,000 1,262,463 MILWAUKIE, OR 4.650% 06/01/2009................ 405,000 415,631 4.750% 06/01/2010................ 425,000 439,344 4.850% 06/01/2011................ 340,000 350,625 MORROW COUNTY SCHOOL DISTRICT 6.000% 06/01/2006................ 880,000 987,800 MULTNOMAH COUNTY SCHOOL DISTRICT #3 PARKROSE 5.400% 12/01/2005................ 1,010,000 1,081,963 5.700% 12/01/2008................ 1,330,000 1,438,063 5.700% 12/01/2009................ 1,970,000 2,112,825 5.500% 12/01/2010................ 895,000 945,344 5.500% 12/01/2011................ 1,000,000 1,055,000 NORTHERN OREGON CORRECTIONS 5.250% 09/15/2012................ 1,000,000 1,047,500 5.300% 09/15/2013................ 1,000,000 1,048,750 PRINCIPAL AMOUNT VALUE(1) ----------- ------------- PORTLAND COMMUNITY COLLEGE DISTRICT 5.000% 07/01/2011................ $2,000,000 $ 2,085,000 SALEM PEDESTRIAN SAFETY IMPROVEMENTS 5.400% 05/01/2009................ 1,000,000 1,060,000 TILLAMOOK COUNTY 6.250% 01/01/2014................ 960,000 1,064,400 5.700% 01/15/2016................ 700,000 744,625 UMATILLA COUNTY SCHOOL DISTRICT #6R UMATILLA 5.080% 06/15/2018................ 1,455,000 1,458,638 UMATILLA COUNTY SCHOOL DISTRICT #8R HERMISTON 4.400% 12/01/2011................ 1,000,000 987,500 UMATILLA COUNTY SCHOOL DISTRICT #16R PENDLETON 4.650% 07/01/2010................ 1,660,000 1,689,050 WASHINGTON COUNTY SCHOOL DISTRICT #13 5.350% 06/01/2011................ 355,000 376,300 5.350% 06/01/2012................ 440,000 464,750 5.400% 06/01/2013................ 485,000 531,681 WASHINGTON COUNTY SCHOOL DISTRICT #15 5.250% 06/01/2009................ 2,150,000 2,303,188 WASHINGTON COUNTY SCHOOL DISTRICT #15 FOREST GROVE 5.125% 06/01/2010................ 1,000,000 1,072,500 WASHINGTON COUNTY SCHOOL DISTRICT #48J BEAVERTON SERIES A 5.200% 12/01/2009................ 1,740,000 1,831,350 WASHINGTON COUNTY SCHOOL DISTRICT #88J SHERWOOD 6.100% 06/01/2012................ 185,000 204,194 YAMHILL COUNTY SCHOOL DISTRICT #29J NEWBERG 5.750% 06/01/2009................ 2,000,000 2,225,000 5.750% 06/01/2011................ 2,280,000 2,545,050 YAMHILL COUNTY SCHOOL DISTRICT #40 6.000% 06/01/2009................ 500,000 566,875 5.350% 06/01/2010................ 500,000 535,625 5.600% 06/01/2016................ 500,000 527,500 ------------- 80,673,025 ------------- TOTAL GENERAL OBLIGATION BONDS (COST $175,830,009)............... 186,304,139 -------------
53 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - --------------------- --------------------- -- COLUMBIA MUNICIPAL BOND FUND, INC. -- ------
PRINCIPAL AMOUNT VALUE(1) ----------- ------------- REVENUE BONDS (41.8%) OREGON REVENUE (19.6%) ALBANY HOSPITAL FACILITY AUTHORITY MENNONITE HOME 5.625% 10/01/2017................ $ 375,000 $ 382,500 BENTON COUNTY HOSPITAL FACILITIES AUTHORITY REFUNDING SAMARITAN HEALTH SERVICES PROJECT 4.300% 10/01/2006................ 230,000 229,137 4.400% 10/01/2007................ 220,000 220,000 4.800% 10/01/2011................ 245,000 245,000 5.200% 10/01/2017................ 1,895,000 1,895,000 5.125% 10/01/2028................ 3,000,000 2,957,670 CLACKAMAS COUNTY HOSPITAL FACILITY AUTHORITY ROBISON JEWISH HOME PROJECT 6.250% 10/01/2021................ 2,000,000 2,015,100 CLACKAMAS COUNTY HOSPITAL FACILITY AUTHORITY WILLAMETTE VIEW, INC. PROJECT 6.000% 11/01/2008................ 670,000 719,412 CLACKAMAS COUNTY HOSPITAL FACILITY AUTHORITY ODD FELLOWS HOME-SERIES A 5.500% 09/15/2008................ 1,750,000 1,750,000 5.875% 09/15/2021................ 1,400,000 1,398,250 CLACKAMAS COUNTY HOSPITAL FACILITY AUTHORITY GNMA COLLATERAL JENNINGS LODGE 7.500% 10/20/2031................ 1,030,000 1,089,225 CLACKAMAS COUNTY HOSPITAL FACILITY KAISER PERMANENTE SERIES A 5.375% 04/01/2014................ 1,770,000 1,836,375 CLACKAMAS COUNTY HOUSING AUTHORITY MULTIFAMILY HOUSING EASTON RIDGE SERIES A 5.800% 12/01/2016................ 2,255,000 2,359,294 DESCHUTES COUNTY HOSPITAL FACILITY AUTHORITY 5.750% 01/01/2009................ 1,670,000 1,791,075 DESCHUTES VALLEY WATER DISTRICT 5.875% 09/01/2005................ 3,420,000 3,732,075 EUGENE ELECTRIC UTILITY REFUNDING 5.800% 08/01/2008................ 1,435,000 1,508,544 5.800% 08/01/2009................ 1,300,000 1,361,750 PRINCIPAL AMOUNT VALUE(1) ----------- ------------- 6.000% 08/01/2011................ 1,375,000 1,445,469 GRESHAM SEWER 5.350% 06/01/2006................ $ 860,000 $ 912,675 GRESHAM STORMWATER 6.100% 10/01/2009................ 1,115,000 1,222,319 HILLSBORO HOSPITAL FACILITY AUTHORITY TUALITY HEALTHCARE 5.750% 10/01/2012................ 3,795,000 4,010,594 LEBANON WASTEWATER REFUNDING 5.750% 06/01/2011................ 1,225,000 1,289,312 NORTH CLACKAMAS PARKS & RECREATION DISTRICT RECREATIONAL FACILITIES 5.700% 04/01/2013................ 2,910,000 3,055,500 NORTHERN WASCO COUNTY PEOPLE'S UTILITY DISTRICT ELECTRIC 0.000% 02/01/2006................ 610,000 437,675 0.000% 02/01/2007................ 585,000 390,487 0.000% 02/01/2008................ 610,000 378,200 0.000% 02/01/2011................ 500,000 248,750 OREGON HEALTH, HOUSING, EDUCATIONAL & CULTURAL FACILITIES AUTHORITY REED COLLEGE PROJECT SERIES A 5.300% 07/01/2011................ 500,000 516,875 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/AQUARIUM 4.750% 10/01/2008................ 1,550,000 1,530,625 4.900% 10/01/2009................ 670,000 658,275 OREGON HEALTH, HOUSING, EDUCATIONAL & CULTURAL FACILITIES AUTHORITY LINFIELD COLLEGE PROJECT-SERIES A 4.550% 10/01/2008................ 525,000 522,375 4.650% 10/01/2009................ 555,000 552,225 OREGON HOUSING & COMMUNITY SERVICES DEPARTMENT HOUSING FINANCE ASSISTED INSURED MULTI-UNIT B 6.800% 07/01/2013................ 8,270,000 8,724,850
54 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - --------------------- --------------------- -- COLUMBIA MUNICIPAL BOND FUND, INC. -- ------
PRINCIPAL AMOUNT VALUE(1) ----------- ------------- OREGON REVENUE (CONTINUED) OREGON HOUSING & COMMUNITY SERVICES DEPARTMENT MORTGAGE SINGLE-FAMILY MORTGAGE PROGRAM SERIES A 4.850% 07/01/2010................ $ 310,000 $ 316,200 5.100% 07/01/2014................ 430,000 436,987 6.800% 07/01/2016................ 1,930,000 2,050,625 OREGON HOUSING & COMMUNITY SERVICES DEPARTMENT MORTGAGE SINGLE-FAMILY MORTGAGE PROGRAM SERIES D 6.700% 07/01/2013................ 1,000,000 1,047,500 OREGON HOUSING & COMMUNITY SERVICES DEPARTMENT MORTGAGE SINGLE-FAMILY MORTGAGE PROGRAM SERIES E 6.750% 07/01/2016................ 55,000 54,931 OREGON HOUSING FINANCIAL REVENUE 5.800% 07/01/2009................ 390,000 391,919 PORT OF ST. HELENS POLLUTION CONTROL PORTLAND GENERAL ELECTRIC CO.-SERIES A 4.800% 04/01/2010................ 4,165,000 4,201,444 PORT OF ST. HELENS POLLUTION CONTROL PORTLAND GENERAL ELECTRIC CO.-SERIES B 4.800% 06/01/2010................ 2,000,000 2,017,500 PORTLAND HOUSING AUTHORITY MULTIFAMILY HOUSING-SENIOR LIEN-CIVIC APARTMENTS-SERIES A 5.600% 01/01/2018................ 1,240,000 1,297,350 PORTLAND HOUSING AUTHORITY REF-POOLED HOUSING-SERIES A 4.500% 01/01/2009................ 660,000 657,525 5.000% 01/01/2019................ 5,540,000 5,519,225 5.100% 01/01/2027................ 3,000,000 2,992,470 PORTLAND HYDROELECTRIC POWER 6.800% 10/01/2004................ 465,000 468,478 PORTLAND PARKING REFUNDING 6.375% 10/01/2012................ 1,700,000 1,755,250 PORTLAND WATER SYSTEM 5.250% 08/01/2013................ 2,000,000 2,062,500 5.000% 08/01/2017................ 3,685,000 3,712,638 PRINEVILLE SEWER FIRST LIEN 6.500% 07/01/2004................ 500,000 543,125 6.800% 07/01/2012................ 1,050,000 1,164,188 PRINCIPAL AMOUNT VALUE(1) ----------- ------------- REEDSPORT WATER 7.000% 10/01/2014................ $ 520,000 $ 586,950 SALEM HOSPITAL FACILITY AUTHORITY 5.000% 08/15/2018................ 2,000,000 1,975,000 SHERIDAN WATER REVENUE REFUNDING 5.350% 04/01/2018................ 300,000 301,875 SOUTH FORK WATER BOARD FIRST LIEN 5.450% 02/01/2014................ 1,300,000 1,337,375 ------------- 90,572,293 ------------- OREGON INSURED REVENUE (22.2%) CLACKAMAS COUNTY HEALTH FACILITY AUTHORITY REVENUE REFUNDING ADVENTIST HEALTH A 6.350% 03/01/2009................ 1,500,000 1,620,000 EMERALD PEOPLES UTILITIES DISTRICT 7.200% 11/01/2006................ 480,000 579,600 7.350% 11/01/2010................ 2,160,000 2,764,800 7.350% 11/01/2011................ 2,000,000 2,577,500 7.350% 11/01/2012................ 2,490,000 3,193,425 7.350% 11/01/2013................ 2,675,000 3,457,437 EUGENE ELECTRIC UTILITY SYSTEM- SERIES B 4.550% 08/01/2010................ 600,000 603,000 4.650% 08/01/2011................ 625,000 627,344 5.000% 08/01/2018................ 1,000,000 997,500 5.000% 08/01/2023................ 500,000 496,250 EUGENE ELECTRIC UTILITY REFUNDING 4.700% 08/01/2008................ 1,225,000 1,270,937 MARION COUNTY CERTIFICATES OF PARTICIPATION COURTHOUSE SQUARE PROJECT-SERIES A 4.650% 06/01/2012................ 355,000 355,000 5.000% 06/01/2023................ 1,000,000 992,500 MEDFORD HOSPITAL FACILITIES AUTHORITY ASANTE HEALTH SYSTEM-SERIES B 5.125% 08/15/2028................ 7,000,000 7,045,010 MULTNOMAH COUNTY EDUCATIONAL FACILITIES UNIVERSITY OF PORTLAND PROJECT 5.000% 04/01/2018................ 1,530,000 1,535,737
55 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - --------------------- --------------------- -- COLUMBIA MUNICIPAL BOND FUND, INC. -- ------
PRINCIPAL AMOUNT VALUE(1) ----------- ------------- OREGON INSURED REVENUE (CONTINUED) ONTARIO OREGON CATHOLIC HEALTH HOLY ROSARY MEDICAL CENTER 5.500% 11/15/2012................ $1,500,000 $ 1,612,500 OREGON DEPARTMENT OF ADMINISTRATIVE SERVICES CERTIFICATES PARTICIPATION SERIES A 5.375% 11/01/2004................ 1,500,000 1,612,500 5.250% 05/01/2008................ 4,950,000 5,302,688 5.300% 05/01/2008................ 750,000 811,875 5.250% 11/01/2009................ 2,460,000 2,613,750 5.700% 05/01/2015................ 1,000,000 1,080,000 5.375% 11/01/2016................ 4,695,000 4,876,931 OREGON DEPARTMENT OF ADMINISTRATIVE SERVICES CERTIFICATES PARTICIPATION SERIES B 5.500% 11/01/2011................ 1,635,000 1,753,538 5.000% 11/01/2013................ 1,000,000 1,026,250 5.000% 11/01/2014................ 500,000 508,750 OREGON DEPARTMENT OF ADMINISTRATIVE SERVICES CERTIFICATES PARTICIPATION SERIES C 5.500% 05/01/2011................ 2,000,000 2,137,500 5.750% 05/01/2017................ 2,000,000 2,160,000 OREGON DEPARTMENT OF GENERAL SERVICES CERTIFICATES PARTICIPATION SERIES C 5.800% 03/01/2015................ 840,000 880,950 OREGON HEALTH SCIENCES UNIVERSITY SERIES A 0.000% 07/01/2009................ 1,530,000 975,375 0.000% 08/01/2012................ 1,315,000 698,594 0.000% 07/01/2014................ 2,495,000 1,175,769 0.000% 07/01/2015................ 4,325,000 1,924,625 OREGON HEALTH SCIENCES UNIVERSITY SERIES B 4.875% 07/01/2007................ 1,695,000 1,779,750 OREGON HEALTH, HOUSING, EDUCATIONAL & CULTURAL FACILITIES AUTHORITY LEWIS & CLARK COLLEGE 6.000% 10/01/2013................ 965,000 1,068,738 PRINCIPAL AMOUNT VALUE(1) ----------- ------------- PORT OF PORTLAND AIRPORT REFUNDING-PORTLAND INTERNATIONAL AIRPORT-SERIES 12B 5.250% 07/01/2012................ $1,720,000 $ 1,816,750 PORT OF PORTLAND AIRPORT REVENUE PORTLAND INTERNATIONAL AIRPORT SERIES 7-A 6.500% 07/01/2004................ 500,000 536,250 6.750% 07/01/2015................ 3,470,000 3,738,925 PORT OF PORTLAND AIRPORT REVENUE SERIES 9-A 5.500% 07/01/2006................ 500,000 526,875 PORTLAND ARENA GAS TAX REVENUE 0.000% 06/01/2016................ 1,100,000 412,500 0.000% 06/01/2017................ 2,320,000 812,000 PORTLAND GAS TAX REVENUE SERIES A 5.800% 06/01/2016................ 1,625,000 1,752,969 PORTLAND SEWER SYSTEM SERIES A 4.500% 06/01/2014................ 410,000 402,825 4.500% 06/01/2015................ 510,000 493,425 PORTLAND SEWER SYSTEM REVENUE SERIES A 5.000% 06/01/2009................ 1,075,000 1,131,438 SALEM WATER & SEWER 6.000% 06/01/2005................ 1,080,000 1,202,850 TUALATIN HILLS PARK & RECREATION DISTRICT 5.750% 03/01/2014................ 990,000 1,106,325 TUALATIN VALLEY WATER DISTRICT 5.000% 06/01/2018................ 2,045,000 2,055,225 WASHINGTON COUNTY UNIFIED SEWER AGENCY 5.500% 10/01/2016................ 1,500,000 1,586,250 WASHINGTON COUNTY UNIFIED SEWER AGENCY SERIES A 0.000% 10/01/2003................ 1,975,000 1,646,656 0.000% 10/01/2005................ 5,230,000 3,987,875 0.000% 10/01/2007................ 4,835,000 3,354,281 5.750% 10/01/2009................ 3,350,000 3,781,312 5.750% 10/01/2010................ 2,000,000 2,257,500 5.750% 10/01/2011................ 1,825,000 2,064,531 5.400% 10/01/2012................ 520,000 553,800 5.750% 10/01/2012................ 2,000,000 2,262,500
56 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - --------------------- --------------------- -- COLUMBIA MUNICIPAL BOND FUND, INC. -- ------
PRINCIPAL AMOUNT VALUE(1) ----------- ------------- OREGON INSURED REVENUE (CONTINUED) WASHINGTON COUNTY UNIFIED SEWER AGENCY UNREFUNDED SERIES A 5.900% 10/01/2006................ $1,050,000 $ 1,147,125 WESTERN LANE HOSPITAL DISTRICT FACILITY AUTHORITY REVENUE REFUNDING SISTERS ST. JOSEPH PEACE 5.625% 08/01/2007................ 2,080,000 2,261,584 ------------- 103,007,894 ------------- TOTAL REVENUE BONDS (COST $185,390,263)............... 193,580,187 ------------- PRE-REFUNDED BONDS (5.9%) BOARD OF HIGHER EDUCATION SERIES A 5.900% 08/01/2018................ 1,000,000 1,133,750 CHEMEKETA COMMUNITY COLLEGE DISTRICT 5.950% 06/01/2016................ 1,600,000 1,798,000 CLACKAMAS COUNTY HOSPITAL FACILITY AUTHORITY ELDERLY HOUSING WILLAMETTE VIEW INCOME PROJECT 7.000% 11/15/2011................ 470,000 521,700 CLACKAMAS COUNTY SCHOOL DISTRICT #1 6.300% 07/01/2003................ 700,000 744,625 CLACKAMAS COUNTY SCHOOL DISTRICT #115 GLADSTONE 6.150% 06/01/2014................ 1,200,000 1,353,000 EUGENE ELECTRIC UTILITY SERIES C 5.750% 08/01/2016................ 1,055,000 1,160,500 LANE COUNTY SCHOOL DISTRICT #19 SPRINGFIELD 6.150% 10/15/2009................ 1,500,000 1,689,375 MULTNOMAH COUNTY EDUCATIONAL FACILITIES UNIVERSITY OF PORTLAND PROJECT 6.000% 04/01/2014................ 1,375,000 1,521,094 MULTNOMAH-CLACKAMAS COUNTIES SCHOOL DISTRICT #51JT RIVERDALE 5.750% 06/01/2016................ 2,270,000 2,428,900 OREGON CITY SEWER 6.500% 10/01/2007................ 500,000 558,125 PRINCIPAL AMOUNT VALUE(1) ----------- ------------- PORTLAND SEWER SYSTEM REVENUE SERIES A 6.050% 06/01/2009................ $ 535,000 $ 595,187 6.200% 06/01/2012................ 4,000,000 4,475,000 TUALATIN HILLS PARK & RECREATION DISTRICT 5.700% 03/01/2009................ 1,340,000 1,462,275 5.750% 03/01/2010................ 730,000 799,350 UMATILLA COUNTY SCHOOL DISTRICT #8R HERMISTON 6.000% 12/01/2010................ 695,000 773,188 WASHINGTON COUNTY SCHOOL DISTRICT #88J SHERWOOD 6.100% 06/01/2012................ 815,000 913,240 YAMHILL COUNTY SCHOOL DISTRICT #29J NEWBERG 5.500% 06/01/2010................ 1,405,000 1,513,888 6.100% 06/01/2011................ 3,355,000 3,736,631 ------------- TOTAL PRE-REFUNDED BONDS (COST $24,595,113)................ 27,177,828 ------------- OREGON OTHER BONDS (2.9%) GRANTS PASS URBAN RENEWAL AGENCY TAX INCREMENT 6.125% 08/01/2012................ 755,000 776,706 HOOD RIVER URBAN RENEWAL AGENCY 6.250% 12/15/2011................ 1,250,000 1,373,437 LANE COUNTY SCHOOL DISTRICT #4J EUGENE CERTIFICATES 6.900% 10/01/2000................ 500,000 529,375 LEBANON SPECIAL OBLIGATION REVENUE REFUNDING LEASE WATER 5.400% 10/01/2013................ 755,000 776,706 MEDFORD URBAN RENEWAL AGENCY TAX REVENUE 5.875% 09/01/2010................ 500,000 532,500 MULTNOMAH COUNTY CERTIFICATE PARTICIPATION 4.550% 08/01/2010................ 1,725,000 1,733,625 NEWBERG CERTIFICATES PARTICIPATION 6.000% 12/01/1999................ 390,000 397,387 6.100% 12/01/2000................ 410,000 425,887 6.200% 12/01/2001................ 410,000 433,063
57 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - --------------------- --------------------- -- COLUMBIA MUNICIPAL BOND FUND, INC. -- ------
PRINCIPAL AMOUNT VALUE(1) ----------- ------------- OREGON OTHER BONDS (CONTINUED) PORTLAND AIRPORT WAY URBAN RENEWAL & REDEVELOPMENT TAX INCREMENT SERIES C 5.900% 06/01/2006................ $ 860,000 $ 922,350 PORTLAND BUILDING REFUNDING SERIES A 4.750% 04/01/2007................ 2,000,000 2,047,500 PORTLAND URBAN RENEWAL & REDEVELOPMENT REFUNDING, DOWNTOWN WATERFRONT SERIES L 6.000% 06/01/2002................ 1,170,000 1,246,050 6.400% 06/01/2008................ 2,085,000 2,238,769 ------------- TOTAL OREGON OTHER BONDS (COST $12,701,269)................ 13,433,355 ------------- U.S. TERRITORIES BONDS (6.6%) GUAM GOVERNMENT LIMITED OBLIGATION INFRASTRUCTURE IMPROVEMENT-SERIES A 5.000% 11/01/2017................ 3,000,000 3,037,500 PUERTO RICO COMMONWEALTH AQUEDUCT & SEWER AUTHORITY REVENUE SERIES A 9.000% 07/01/2009................ 6,135,000 7,676,419 PUERTO RICO COMMONWEALTH AQUEDUCT & SEWER AUTHORITY 5.200% 07/01/2008................ 1,000,000 1,082,500 PUERTO RICO COMMONWEALTH INFRASTRUCTURE FINANCING AUTHORITY 5.000% 07/01/2013................ 1,750,000 1,795,937 PUERTO RICO COMMONWEALTH PUBLIC BUILDINGS AUTHORITY REVENUE SERIES B 5.000% 07/01/2013................ 3,130,000 3,212,163 PUERTO RICO COMMONWEALTH PUBLIC IMPROVEMENTS 6.250% 07/01/2009................ 3,000,000 3,528,750 6.250% 07/01/2013................ 1,000,000 1,190,000 PUERTO RICO COMMONWEALTH 6.250% 07/01/2008................ 1,000,000 1,165,000 PRINCIPAL AMOUNT VALUE(1) ----------- ------------- PUERTO RICO ELECTRIC POWER AUTHORITY 5.000% 07/01/2010................ $2,425,000 $ 2,570,500 PUERTO RICO HOUSING BANK & FINANCE AGENCY SINGLE FAMILY MORTGAGE REVENUE FHA HOMEOWNERSHIP 5TH PORTFOLIO 7.500% 12/01/2015................ 610,000 643,550 PUERTO RICO HOUSING FINANCE CORP. MULTI FAMILY MORTGAGE REVENUE PORTFOLIO A-1 7.500% 04/01/2022................ 1,425,000 1,481,074 PUERTO RICO HOUSING FINANCE CORP. SINGLE FAMILY MORTGAGE REVENUE PORTFOLIO 1 SERIES B 7.500% 10/15/2012................ 1,040,000 1,088,568 PUERTO RICO HOUSING FINANCE CORP. SINGLE FAMILY MORTGAGE REVENUE PORTFOLIO 1 SERIES C 6.750% 10/15/2013................ 710,000 750,825 VIRGIN ISLANDS PUBLIC FINANCE AUTHORITY REVENUE UNREFUNDED BALANCE SERIES A 7.300% 10/01/2018................ 1,185,000 1,519,762 ------------- TOTAL US TERRITORIES BONDS (COST $28,921,719)................ 30,742,548 ------------- TOTAL INVESTMENTS, EXCLUDING TEMPORARY CASH INVESTMENTS (COST $427,438,373)............... 451,238,057 ------------- TAX-EXEMPT MONEY MARKET INVESTMENT (1.6%) SEI TAX EXEMPT TRUST (COST $7,375,062)..................... 7,375,062 7,375,062 ------------- TOTAL INVESTMENTS (99.1%) (COST $434,813,435)................... 458,613,119 RECEIVABLES LESS LIABILITIES (0.9%).... 4,195,604 ------------- TOTAL NET ASSETS (100.0%).............. $ 462,808,723 ------------- -------------
(1) See Note 1 of Notes to Financial Statements. See Notes to Financial Statements. 58 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ------------------------ ------------------------ -- COLUMBIA HIGH YIELD FUND, INC. -- ------
PRINCIPAL DECEMBER 31, 1998 AMOUNT VALUE(1) ----------- ------------ CORPORATE BONDS (89.6%) INDUSTRIAL (75.0%) BASIC INDUSTRY & MANUFACTURING (11.0%) MANUFACTURING (9.6%) AVIATION SALES CO. SENIOR SUBORDINATED NOTES 8.125% 02/15/2008.............. $1,000,000 $ 990,000 BALL CORP. (144A) SENIOR NOTES 7.750% 08/01/2006.............. 1,000,000 1,050,000 SILGAN HOLDINGS, INC. SENIOR SUBORDINATED DEBENTURES 9.000% 06/01/2009.............. 500,000 506,250 TITAN WHEEL INTERNATIONAL, INC. SENIOR SUBORDINATED NOTES 8.750% 04/01/2007.............. 1,000,000 950,000 UNISYS CORP. SENIOR NOTES 11.750% 10/15/2004............. 900,000 1,044,000 WYMAN-GORDON CO. SENIOR NOTES 8.000% 12/15/2007.............. 990,000 985,050 ------------ 5,525,300 ------------ METALS/MINING (1.4%) RYERSON TULL, INC. NOTES 8.500% 07/15/2001.............. 750,000 777,180 ------------ TOTAL BASIC INDUSTRY & MANUFACTURING..................... 6,302,480 ------------ BUSINESS & CONSUMER SERVICES (32.4%) SERVICES & PUBLISHING (10.0%) ALLIED WASTE NORTH AMERICA, INC. (144A) SENIOR NOTES 7.625% 01/01/2006.............. 1,000,000 1,010,000 IRON MOUNTAIN, INC. SENIOR SUBORDINATED NOTES 10.125% 10/01/2006............. 750,000 813,750 PROTECTION ONE ALARM MONITORING, INC. (144A) SENIOR NOTES 7.375% 08/15/2005.............. 1,000,000 1,005,860 PRINCIPAL AMOUNT VALUE(1) ----------- ------------ RENTAL SERVICE CORP. SENIOR SUBORDINATED NOTES 9.000% 05/15/2008.............. $1,250,000 $ 1,218,750 UNITED STATIONERS SUPPLY CO. SENIOR SUBORDINATED NOTES 8.375% 04/15/2008.............. 735,000 733,163 WORLD COLOR PRESS, INC. (144A) SENIOR SUBORDINATED NOTES 8.375% 11/15/2008.............. 1,000,000 1,000,000 ------------ 5,781,523 ------------ ENTERTAINMENT & MEDIA (22.4%) ADELPHIA COMMUNICATIONS CORP. SENIOR NOTES, SERIES B 10.500% 07/15/2004............. 1,000,000 1,095,000 CINEMARK USA, INC. SENIOR SUBORDINATED NOTES, SERIES B 9.625% 08/01/2008.............. 1,000,000 1,047,500 COMCAST CORP. SENIOR SUBORDINATED DEBENTURES 9.500% 01/15/2008.............. 1,000,000 1,046,180 HERITAGE MEDIA CORP. SENIOR SUBORDINATED NOTES 8.750% 02/15/2006.............. 750,000 787,500 HOLLINGER INTERNATIONAL PUBLISHING, INC. SENIOR NOTES 8.625% 03/15/2005.............. 1,000,000 1,055,000 JACOR COMMUNICATIONS CO. SENIOR SUBORDINATED NOTES, SERIES B 8.750% 06/15/2007.............. 1,000,000 1,085,000 JONES INTERCABLE, INC. SENIOR NOTES 8.875% 04/01/2007.............. 700,000 745,500 7.625% 04/15/2008.............. 300,000 306,000 LAMAR ADVERTISING CO. SENIOR SUBORDINATED NOTES 9.625% 12/01/2006.............. 1,250,000 1,350,000 LENFEST COMMUNICATIONS, INC. SENIOR NOTES 8.375% 11/01/2005.............. 450,000 486,000 OUTDOOR SYSTEMS, INC. SENIOR SUBORDINATED NOTES 9.375% 10/15/2006.............. 685,000 739,800
59 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ------------------------ ------------------------ -- COLUMBIA HIGH YIELD FUND, INC. -- ------
PRINCIPAL AMOUNT VALUE(1) ----------- ------------ SFX BROADCASTING, INC. SENIOR SUBORDINATED NOTES, SERIES B 10.750% 05/15/2006............. $ 531,000 $ 589,410 SINCLAIR BROADCAST GROUP, INC. SENIOR SUBORDINATED NOTES 8.750% 12/15/2007.............. 750,000 757,500 USA NETWORKS, INC. (144A) SENIOR NOTES 6.750% 11/15/2005.............. 1,000,000 996,140 YOUNG BROADCASTING, INC. SENIOR SUBORDINATED NOTES, SERIES B 10.125% 02/15/2005............. 750,000 785,625 ------------ 12,872,155 ------------ TOTAL BUSINESS & CONSUMER SERVICES.......................... 18,653,678 ------------ CONSUMER CYCLICAL (13.0%) AUTO & AUTO PARTS (3.6%) FEDERAL MOGUL CORP. NOTES 7.750% 07/01/2006.............. 1,000,000 1,015,440 HAYES WHEELS INTERNATIONAL, INC. SENIOR SUBORDINATED NOTES, SERIES B 9.125% 07/15/2007.............. 1,000,000 1,042,500 ------------ 2,057,940 ------------ HOTELS & GAMING (2.2%) RIO HOTEL & CASINO, INC. SENIOR SUBORDINATED NOTES 9.500% 04/15/2007.............. 450,000 501,750 STATION CASINOS, INC. SENIOR SUBORDINATED NOTES 9.625% 06/01/2003.............. 740,000 766,788 ------------ 1,268,538 ------------ HOUSING RELATED (3.5%) NORTEK, INC. (144A) SENIOR NOTES 8.875% 08/01/2008.............. 1,000,000 1,015,000 PRINCIPAL AMOUNT VALUE(1) ----------- ------------ WEBB (DEL) CORP. SENIOR SUBORDINATED DEBENTURES 9.375% 05/01/2009.............. $1,000,000 $ 981,250 ------------ 1,996,250 ------------ RETAIL (3.7%) MAXIM GROUP, INC. SENIOR SUBORDINATED NOTES, SERIES B 9.250% 10/15/2007.............. 1,000,000 980,000 SPECIALTY RETAILERS, INC. SENIOR NOTES, SERIES B 8.500% 07/15/2005.............. 500,000 435,000 ZALE CORP. SENIOR NOTES, SERIES B 8.500% 10/01/2007.............. 750,000 727,500 ------------ 2,142,500 ------------ TOTAL CONSUMER CYCLICAL............ 7,465,228 ------------ CONSUMER STAPLES (10.0%) FOOD/BEVERAGE/TOBACCO (0.8%) PURINA MILLS, INC. SENIOR SUBORDINATED NOTES 9.000% 03/15/2010.............. 450,000 443,250 ------------ HEALTH CARE (7.4%) CONMED CORP. SENIOR SUBORDINATED NOTES 9.000% 03/15/2008.............. 1,000,000 1,010,000 HEALTHSOUTH CORP. SENIOR SUBORDINATED NOTES 9.500% 04/01/2001.............. 1,000,000 1,031,850 QUORUM HEALTH GROUP, INC. SENIOR SUBORDINATED NOTES 8.750% 11/01/2005.............. 1,000,000 955,000 TENET HEALTHCARE CORP. (144A) SENIOR SUBORDINATED NOTES 8.125% 12/01/2008.............. 1,250,000 1,281,250 ------------ 4,278,100 ------------ OTHER (1.8%) WESTPOINT STEVENS, INC. SENIOR NOTES 7.875% 06/15/2005.............. 1,000,000 1,015,000 ------------ TOTAL CONSUMER STAPLES............. 5,736,350 ------------
60 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ------------------------ ------------------------ -- COLUMBIA HIGH YIELD FUND, INC. -- ------
PRINCIPAL AMOUNT VALUE(1) ----------- ------------ ENERGY (6.3%) GULF CANADA RESOURCES LTD. SENIOR SUBORDINATED DEBENTURES 9.625% 07/01/2005................ $ 750,000 $ 742,500 NEWPARK RESOURCES, INC. SENIOR SUBORDINATED NOTES, SERIES B 8.625% 12/15/2007................ 1,000,000 950,000 NUEVO ENERGY CO. SENIOR SUBORDINATED NOTES 9.500% 04/15/2006............... 900,000 877,500 SANTA FE ENERGY RESOURCE, INC. SENIOR SUBORDINATED DEBENTURES 11.000% 05/15/2004............... 1,000,000 1,050,000 ------------ TOTAL ENERGY....................... 3,620,000 ------------ TRANSPORTATION (2.3%) ALLIED HOLDING, INC. SENIOR NOTES, SERIES B 8.625% 10/01/2007................ 500,000 507,500 TEEKAY SHIPPING CORP. GTD. 1ST PFD. SHIP. MTG. NOTES 8.320% 02/01/2008................ 850,000 841,500 ------------ TOTAL TRANSPORTATION............... 1,349,000 ------------ TOTAL INDUSTRIAL................... 43,126,736 ------------ UTILITIES (14.6%) ELECTRIC (5.8%) AES CORP. SENIOR SUBORDINATED NOTES 10.250% 07/15/2006............... 800,000 864,000 AES CORP. SENIOR SUBORDINATED EXCHANGE NOTES 8.375% 08/15/2007............... 500,000 503,750 CMS ENERGY X-TRAS (144A) PASS THRU TRUST I SENIOR UNSECURED NOTES 7.000% 01/15/2005............... 1,000,000 991,450 CALENERGY, INC. SENIOR SECURED NOTES 9.875% 06/30/2003................ 850,000 951,864 ------------ 3,311,064 ------------ PRINCIPAL AMOUNT VALUE(1) ----------- ------------ TELECOMMUNICATIONS (8.8%) FLAG LTD. SENIOR NOTES 8.250% 01/30/2008................ $1,000,000 $ 980,000 LEVEL 3 COMMUNICATIONS, INC. (144A) SENIOR DISCOUNT NOTES STEP-UP COUPON 0.000% TO 12/01/2003, THEN 10.500% TO 12/01/2008........... 2,050,000 1,178,750 METROMEDIA FIBER NETWORK, INC. (144A) SENIOR NOTES 10.000% 11/15/2008............... 1,000,000 1,025,000 NEXTLINK COMMUNICATIONS, INC. SENIOR DISCOUNT NOTES STEP-UP COUPON 0.000% TO 04/15/2003, THEN 9.450% TO 04/15/2008................... 1,000,000 575,000 NEXTLINK COMMUNICATIONS, INC. (144A) SENIOR NOTES 10.750% 11/15/2008............... 500,000 511,250 PAGING NETWORK, INC. SENIOR SUBORDINATED NOTES 10.000% 10/15/2008............... 850,000 813,875 ------------ 5,083,875 ------------ TOTAL UTILITIES.................... 8,394,939 ------------ TOTAL CORPORATE BONDS (COST $51,359,035)................ 51,521,675 ------------ REPURCHASE AGREEMENTS (7.2%) J.P. MORGAN SECURITIES, INC. 4.970% DATED 12/31/1998, DUE 01/04/1999 IN THE AMOUNT OF $1,965,773. COLLATERALIZED BY U.S TREASURY BILLS DUE 06/24/1999, U.S TREASURY BONDS 6.500% DUE 11/15/2026, U.S. TREASURY NOTES 5.375% DUE 06/30/2000 TO 07/31/2000.......................... 1,965,505 1,965,505
61 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ------------------------ ------------------------ -- COLUMBIA HIGH YIELD FUND, INC. -- ------
PRINCIPAL AMOUNT VALUE(1) ----------- ------------ MERRILL LYNCH 4.917% DATED 12/31/1998, DUE 01/04/1999 IN THE AMOUNT OF $2,200,296. COLLATERALIZED BY U.S. TREASURY STRIPS DUE 11/15/2014 TO 11/15/2024........ $2,200,000 $ 2,200,000 ------------ TOTAL REPURCHASE AGREEMENTS (COST $4,165,505)................. 4,165,505 ------------ TOTAL INVESTMENTS (96.8%) (COST $55,524,540).................... 55,687,180 RECEIVABLES LESS LIABILITIES (3.2%).... 1,836,653 ------------ NET ASSETS (100.0%).................... $ 57,523,833 ------------ ------------
(1) See Note 1 of Notes to Financial Statements. See Notes to Financial Statements. 62 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ----------------------- ----------------------- -- COLUMBIA DAILY INCOME COMPANY -- ------
PRINCIPAL DECEMBER 31, 1998 AMOUNT VALUE(1) ------------ --------------- U.S. GOVERNMENT SECURITIES (2.7%) FEDERAL HOME LOAN BANK 4.800% 10/13/1999................ $10,000,000 $ 10,000,760 FEDERAL NATIONAL MORTGAGE ASSOCIATION 4.800% 04/02/1999................ 20,000,000 19,754,666 --------------- TOTAL U.S. GOVERNMENT SECURITIES (COST $29,755,426)................ 29,755,426 --------------- COMMERCIAL PAPER (95.1%) AIR PRODUCTS & CHEMICALS, INC. 5.220% 01/29/1999................ 13,000,000 12,945,335 5.070% 02/05/1999................ 5,000,000 4,974,650 ALUMINUM CO. OF AMERICA 5.150% 02/24/1999................ 17,000,000 16,866,243 AMERICAN EXPRESS CREDIT CORP. 5.250% 01/06/1999................ 10,000,000 9,991,250 6.000% 01/07/1999................ 13,300,000 13,284,483 AMERICAN GENERAL FINANCE CORP. 5.790% 01/07/1999................ 7,000,000 6,992,119 5.230% 02/16/1999................ 12,000,000 11,918,063 5.200% 03/05/1999................ 7,000,000 6,935,289 5.110% 03/09/1999................ 6,000,000 5,942,087 5.060% 04/23/1999................ 8,000,000 7,872,938 ARCHER DANIELS MIDLAND CO. 5.350% 01/14/1999................ 15,000,000 14,968,792 5.130% 02/23/1999................ 4,500,000 4,465,372 5.000% 04/06/1999................ 8,000,000 7,893,333 5.000% 04/09/1999................ 8,000,000 7,890,000 AVCO FINANCIAL SERVICES, INC. 5.080% 03/12/1999................ 10,900,000 10,790,794 BANK OF AMERICA, FSB 5.040% 01/25/1999................ 6,000,000 5,979,000 5.050% 02/04/1999................ 12,000,000 11,941,083 BANKAMERICA CORP. 5.200% 01/08/1999................ 10,000,000 9,988,445 5.120% 01/12/1999................ 10,000,000 9,982,933 5.060% 01/21/1999................ 10,000,000 9,970,483 5.080% 02/03/1999................ 10,000,000 9,952,022 BARCLAYS U.S. FUNDING CORP. 7.500% 01/04/1999................ 10,000,000 9,991,667 5.040% 02/18/1999................ 12,000,000 11,917,680 CIT GROUP HOLDINGS, INC. 5.330% 01/28/1999................ 10,000,000 9,958,544 5.280% 01/29/1999................ 12,000,000 11,948,960 PRINCIPAL AMOUNT VALUE(1) ------------ --------------- 5.280% 02/12/1999................ $ 9,000,000 $ 8,943,240 5.020% 04/06/1999................ 9,000,000 8,879,520 CATERPILLAR FINANCIAL SERVICES CORP. 5.350% 01/04/1999................ 11,200,000 11,193,342 5.150% 02/26/1999................ 12,250,000 12,150,112 5.200% 03/10/1999................ 12,000,000 11,880,400 CHEVRON TRANSPORT CORP. 5.060% 02/05/1999................ 13,000,000 12,934,220 5.240% 02/17/1999................ 10,000,000 9,930,133 5.130% 03/11/1999................ 15,000,000 14,850,375 CLOROX CO. 5.100% 02/16/1999................ 10,000,000 9,933,417 5.200% 02/25/1999................ 10,000,000 9,919,111 COMMERCIAL CREDIT CO. 5.090% 01/25/1999................ 9,000,000 8,968,188 5.150% 02/01/1999................ 8,300,000 8,262,004 5.160% 02/11/1999................ 11,000,000 10,933,780 5.150% 02/23/1999................ 8,000,000 7,938,200 DEERE, JOHN & CO. 5.260% 01/05/1999................ 12,000,000 11,991,233 5.200% 01/19/1999................ 15,000,000 14,958,833 5.280% 01/22/1999................ 9,500,000 9,469,347 DONNELLEY (R.R.) & SONS 5.250% 01/04/1999................ 7,500,000 7,495,625 DUPONT (E.I.) DE NEMOURS & CO. 5.030% 02/12/1999................ 10,000,000 9,939,919 EASTMAN KODAK CO. 5.500% 01/14/1999................ 5,200,000 5,188,878 5.100% 02/17/1999................ 10,000,000 9,932,000 EXXON ASSET MANAGEMENT 5.430% 01/08/1999................ 9,000,000 8,989,140 6.000% 01/08/1999................ 9,000,000 8,988,000 FORD MOTOR CREDIT CO. 5.480% 01/06/1999................ 8,000,000 7,992,693 5.010% 01/27/1999................ 8,500,000 8,468,061 5.030% 01/28/1999................ 5,000,000 4,980,439 5.180% 02/18/1999................ 10,000,000 9,929,495 GTE FUNDING, INC. 5.170% 02/01/1999................ 12,000,000 11,944,747 5.160% 02/08/1999................ 15,000,000 14,916,150 5.180% 02/18/1999................ 6,600,000 6,553,466 5.150% 02/22/1999................ 7,000,000 6,946,926 GENERAL ELECTRIC CAPITAL CORP. 5.230% 02/05/1999................ 5,700,000 5,670,189 5.170% 02/08/1999................ 8,000,000 7,955,193 5.000% 04/26/1999................ 6,000,000 5,903,333
63 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ----------------------- ----------------------- -- COLUMBIA DAILY INCOME COMPANY -- ------
PRINCIPAL AMOUNT VALUE(1) ------------ --------------- COMMERCIAL PAPER (CONTINUED) GENERAL ELECTRIC CAPITAL SERVICES 5.500% 02/04/1999................ $10,500,000 $ 10,443,854 GENERAL MOTORS ACCEPTANCE CORP. 5.110% 01/15/1999................ 8,000,000 7,982,967 5.330% 01/22/1999................ 5,000,000 4,983,714 5.060% 02/25/1999................ 8,000,000 7,937,031 HOUSEHOLD FINANCE CORP. 5.390% 01/07/1999................ 10,000,000 9,989,520 5.170% 01/11/1999................ 11,000,000 10,982,623 5.150% 01/29/1999................ 10,000,000 9,958,514 5.200% 02/11/1999................ 10,000,000 9,939,333 IDAHO POWER CO. 5.700% 01/07/1999................ 4,000,000 3,995,567 ILLINOIS TOOL WORKS, INC. 5.070% 01/19/1999................ 6,500,000 6,482,607 MERRILL LYNCH & CO., INC. 5.420% 01/13/1999................ 10,000,000 9,980,428 5.370% 01/15/1999................ 10,000,000 9,977,625 5.500% 01/25/1999................ 10,000,000 9,961,806 5.190% 01/26/1999................ 10,000,000 9,962,517 METLIFE FUNDING, INC. 5.400% 01/14/1999................ 7,000,000 6,985,300 5.250% 01/22/1999................ 12,800,000 12,758,933 5.250% 02/10/1999................ 10,000,000 9,940,208 MORGAN STANLEY GROUP, INC. 5.390% 01/06/1999................ 9,000,000 8,991,915 5.380% 01/11/1999................ 14,700,000 14,675,835 NALCO CHEMICAL CO. 5.060% 03/22/1999................ 5,000,000 4,943,075 5.030% 05/17/1999................ 14,000,000 13,732,013 4.900% 05/21/1999................ 12,000,000 11,769,700 4.850% 06/18/1999................ 10,000,000 9,772,319 NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORP. 5.330% 01/15/1999................ 5,000,000 4,988,896 5.230% 01/22/1999................ 5,000,000 4,984,020 5.330% 01/28/1999................ 7,000,000 6,970,981 5.050% 02/04/1999................ 5,000,000 4,975,451 5.040% 03/19/1999................ 8,000,000 7,912,640 NORWEST FINANCIAL, INC. 5.030% 02/01/1999................ 8,000,000 7,964,231 PRINCIPAL AMOUNT VALUE(1) ------------ --------------- 5.030% 02/02/1999................ $13,000,000 $ 12,940,059 5.170% 02/19/1999................ 10,000,000 9,928,195 5.180% 02/22/1999................ 9,000,000 8,931,365 PACIFICORP 5.070% 01/20/1999................ 15,000,000 14,957,750 5.050% 01/26/1999................ 9,000,000 8,967,175 5.100% 01/27/1999................ 10,000,000 9,961,750 5.120% 02/09/1999................ 7,000,000 6,960,178 PEPSICO, INC. 5.300% 02/02/1999................ 10,500,000 10,448,988 PRIVATE EXPORT FUNDING CORP. 5.110% 01/29/1999................ 2,000,000 1,991,767 5.200% 02/12/1999................ 5,000,000 4,968,945 PRUDENTIAL FUNDING CORP. 5.280% 01/12/1999................ 10,300,000 10,281,872 5.310% 01/21/1999................ 10,000,000 9,969,025 5.230% 02/10/1999................ 13,600,000 13,518,993 ROCKWELL INTERNATIONAL 5.170% 02/09/1999................ 7,700,000 7,655,768 5.220% 02/23/1999................ 13,000,000 12,898,210 TEXACO, INC. 5.200% 01/20/1999................ 10,000,000 9,971,111 USAA CAPITAL CORP. 5.160% 02/03/1999................ 9,925,000 9,876,632 5.150% 02/17/1999................ 5,900,000 5,859,487 U.S. BANCORP 5.200% 01/04/1999................ 9,700,000 9,694,396 WASHINGTON GAS LIGHT CO. 5.350% 01/13/1999................ 5,000,000 4,990,340 WASHINGTON POST CO. 5.250% 02/19/1999................ 14,000,000 13,897,917 WEYERHAUSER REAL ESTATE 5.200% 01/19/1999................ 8,200,000 8,177,928 5.200% 01/27/1999................ 11,700,000 11,654,370 5.200% 01/28/1999................ 12,400,000 12,349,849 --------------- TOTAL COMMERCIAL PAPER (COST $1,055,086,967)............. 1,055,086,967 --------------- TOTAL INVESTMENTS, EXCLUDING TEMPORARY CASH INVESTMENT (COST $1,084,842,393)................. 1,084,842,393
64 SCHEDULE OF INVESTMENTS ----------------------------------------------------------------- [LOGO] - ----------------------- ----------------------- -- COLUMBIA DAILY INCOME COMPANY -- ------
PRINCIPAL AMOUNT VALUE(1) ------------ --------------- REPURCHASE AGREEMENT (1.4%) J.P. MORGAN SECURITIES, INC. 4.970% DATED 12/31/1998, DUE 01/04/1999 IN THE AMOUNT OF $15,765,768. COLLATERALIZED BY U.S. TREASURY BILLS DUE 06/24/1999, U.S. TREASURY BONDS 6.500% DUE 11/15/2026, U.S. TREASURY NOTES 5.375% DUE 06/30/2000 TO 07/31/2000. (COST $15,763,621)................ $15,763,621 $ 15,763,621 --------------- TOTAL INVESTMENTS (99.2%) (COST $1,100,606,014, INCLUDING $6,709,072 ACCRUED INTEREST RECEIVABLE)........................... 1,100,606,014 CASH AND RECEIVABLES LESS LIABILITIES (0.8%)................................ 8,535,197 --------------- NET ASSETS (100.0%).................... $ 1,109,141,211 --------------- ---------------
(1) See Note 1 of Notes to Financial Statements. See Notes to Financial Statements. 65 STATEMENTS OF ASSETS AND LIABILITIES -----------------------------------------------------------------
COLUMBIA COLUMBIA COLUMBIA COLUMBIA COMMON STOCK GROWTH INTERNATIONAL STOCK SPECIAL December 31, 1998 FUND, INC. FUND, INC. FUND, INC. FUND, INC. ------------- --------------- ------------------- --------------- ASSETS: Investments at identified cost............. $558,815,836 $ 1,103,730,738 $ 93,361,366 $ 658,935,821 - --------------------------------------------- ------------- --------------- ------------------- --------------- Investments at value....................... $786,649,402 $ 1,729,620,899 $127,875,292 $ 947,528,380 Temporary cash investments, at cost........ 2,188,750 26,909,575 5,240,270 23,237,199 Cash....................................... -- -- 59,091 -- Cash denominated in foreign currencies (cost $1,219,595)......................... -- -- 1,210,187 -- Receivable for: Interest................................. 70,672 121,175 31,070 107,147 Dividends................................ 417,237 656,083 177,132 232,828 Investments sold......................... 20,686,208 5,705,743 1,783,145 10,267,969 Capital stock sold....................... 784,832 3,786,805 103,233 1,403,698 ------------- --------------- ------------------- --------------- Total assets............................... 810,797,101 1,766,800,280 136,479,420 982,777,221 ------------- --------------- ------------------- --------------- LIABILITIES: Payable for: Capital stock redeemed................... 3,343,973 7,342,603 375,628 3,875,620 Dividends and distributions.............. 7,931,549 5,251,720 2,248 19,709 Investments purchased.................... 1,656,505 -- 1,688,499 8,598,500 Investment management fee................ 397,363 780,487 111,196 681,750 Accrued expenses......................... 321,146 401,929 108,849 242,751 ------------- --------------- ------------------- --------------- Total liabilities.......................... 13,650,536 13,776,739 2,286,420 13,418,330 ------------- --------------- ------------------- --------------- NET ASSETS................................... $797,146,565 $ 1,753,023,541 $134,193,000 $ 969,358,891 ------------- --------------- ------------------- --------------- ------------- --------------- ------------------- --------------- NET ASSETS consist of: Undistributed net investment income........ $ 155,405 $ 31,399 $ -- $ -- Unrealized appreciation on: Investments.............................. 227,833,566 625,890,161 34,513,926 288,592,559 Translation of assets and liabilities in foreign currencies...................... -- -- 4,246 -- Undistributed net realized loss from: Investments.............................. (2,889,085) (4,438,960) (1,595,627) (1,328,411) Capital shares............................. -- 412,388 -- 410,385 Capital paid in............................ 572,046,679 1,131,128,553 101,270,455 681,684,358 ------------- --------------- ------------------- --------------- $797,146,565 $ 1,753,023,541 $134,193,000 $ 969,358,891 ------------- --------------- ------------------- --------------- ------------- --------------- ------------------- --------------- SHARES OF CAPITAL STOCK OUTSTANDING.......... 32,670,725 41,238,820 8,683,069 41,038,458 ------------- --------------- ------------------- --------------- ------------- --------------- ------------------- --------------- NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE *........................... $ 24.40 $ 42.51 $ 15.45 $ 23.62 ------------- --------------- ------------------- --------------- ------------- --------------- ------------------- ---------------
* The net asset value per share is computed by dividing net assets applicable to outstanding shares by shares of capital stock outstanding. See Notes to Financial Statements. 66 STATEMENTS OF ASSETS AND LIABILITIES -----------------------------------------------------------------
COLUMBIA U.S. COLUMBIA COLUMBIA REAL COLUMBIA GOVERNMENT SMALL CAP ESTATE EQUITY BALANCED SECURITIES December 31, 1998 FUND, INC. FUND, INC. FUND, INC. FUND, INC. ------------ ------------- ------------- ------------- ASSETS: Investments at identified cost............. $126,624,815 $157,255,085 $ 797,729,841 $ 39,239,616 - --------------------------------------------- ------------ ------------- ------------- ------------- Investments at value....................... $152,373,425 $154,935,923 $ 960,497,499 $ 39,512,361 Temporary cash investments, at cost........ 13,238,468 7,185,194 2,336,196 674,576 Receivable for: Interest................................. 53,500 31,389 5,259,776 627,696 Dividends................................ 101,037 1,094,520 319,837 -- Investments sold......................... 2,481,239 -- 13,521,228 -- Capital stock sold....................... 641,462 2,551,001 2,314,591 162,414 ------------ ------------- ------------- ------------- Total assets............................... 168,889,131 165,798,027 984,249,127 40,977,047 ------------ ------------- ------------- ------------- LIABILITIES: Payable for: Capital stock redeemed................... 633,373 1,339,660 2,126,760 341,559 Dividends and distributions.............. 952 113,075 406,671 12,961 Investments purchased.................... 7,590,370 -- 5,618,847 -- Investment management fee................ 120,435 103,642 402,870 17,161 Accrued expenses......................... 71,794 69,296 313,221 27,500 ------------ ------------- ------------- ------------- Total liabilities.......................... 8,416,924 1,625,673 8,868,369 399,181 ------------ ------------- ------------- ------------- NET ASSETS................................... $160,472,207 $164,172,354 $ 975,380,758 $ 40,577,866 ------------ ------------- ------------- ------------- ------------ ------------- ------------- ------------- NET ASSETS consist of: Undistributed net investment income........ $ -- $ -- $ 205,849 $ -- Unrealized appreciation (depreciation) on investments............................... 25,748,610 (2,319,162) 162,767,658 272,745 Undistributed net realized gain (loss) from investments............................... (10,245,034) (699) (871,081) 21,399 Capital shares............................. -- -- -- 48,364 Capital paid in............................ 144,968,631 166,492,215 813,278,332 40,235,358 ------------ ------------- ------------- ------------- $160,472,207 $164,172,354 $ 975,380,758 $ 40,577,866 ------------ ------------- ------------- ------------- ------------ ------------- ------------- ------------- SHARES OF CAPITAL STOCK OUTSTANDING.......... 9,206,099 10,419,194 42,094,927 4,836,447 ------------ ------------- ------------- ------------- ------------ ------------- ------------- ------------- NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE *........................... $ 17.43 $ 15.76 $ 23.17 $ 8.39 ------------ ------------- ------------- ------------- ------------ ------------- ------------- -------------
* The net asset value per share is computed by dividing net assets applicable to outstanding shares by shares of capital stock outstanding. See Notes to Financial Statements. 67 STATEMENTS OF ASSETS AND LIABILITIES -----------------------------------------------------------------
COLUMBIA FIXED INCOME COLUMBIA COLUMBIA COLUMBIA SECURITIES MUNICIPAL BOND HIGH YIELD DAILY INCOME December 31, 1998 FUND, INC. FUND, INC. FUND, INC. COMPANY --------------- ------------------- --------------- --------------- ASSETS: Investments at identified cost............. $ 405,960,645 $427,438,373 $ 51,359,035 $ 1,100,606,014 - --------------------------------------------- --------------- ------------------- --------------- --------------- Investments at value....................... $ 415,277,505 $451,238,057 $ 51,521,675 $ 1,100,606,014 Temporary cash investments, at cost........ 12,152,844 7,375,062 4,165,505 -- Cash....................................... -- -- -- 300,000 Receivable for: Interest................................. 4,831,384 5,443,170 1,134,089 117,405 Investments sold......................... 123,262 -- 1,044,000 -- Capital stock sold....................... 867,944 310,638 294,713 19,397,344 --------------- ------------------- --------------- --------------- Total assets............................... 433,252,939 464,366,927 58,159,982 1,120,420,763 --------------- ------------------- --------------- --------------- LIABILITIES: Payable for: Capital stock redeemed................... 3,542,802 200,614 430,215 10,557,337 Dividends and distributions.............. 1,060,315 1,082,832 136,445 -- Investments purchased.................... 5,946,834 -- -- -- Investment management fee................ 181,390 197,456 29,141 431,785 Accrued expenses......................... 191,467 77,302 40,348 290,430 --------------- ------------------- --------------- --------------- Total liabilities.......................... 10,922,808 1,558,204 636,149 11,279,552 --------------- ------------------- --------------- --------------- NET ASSETS................................... $ 422,330,131 $462,808,723 $ 57,523,833 $$1,109,141,211 --------------- ------------------- --------------- --------------- --------------- ------------------- --------------- --------------- NET ASSETS consist of: Unrealized appreciation on investments..... $ 9,316,860 $ 23,799,684 $ 162,640 $ -- Undistributed net realized gain from investments............................... 123,381 8,029 18,462 -- Capital shares............................. 314,783 371,528 -- 1,109,141 Capital paid in............................ 412,575,107 438,629,482 57,342,731 1,108,032,070 --------------- ------------------- --------------- --------------- $ 422,330,131 $462,808,723 $ 57,523,833 $ 1,109,141,211 --------------- ------------------- --------------- --------------- --------------- ------------------- --------------- --------------- SHARES OF CAPITAL STOCK OUTSTANDING.......... 31,478,253 37,152,839 5,844,221 1,109,141,211 --------------- ------------------- --------------- --------------- --------------- ------------------- --------------- --------------- NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE *........................... $ 13.42 $ 12.46 $ 9.84 $ 1.00 --------------- ------------------- --------------- --------------- --------------- ------------------- --------------- ---------------
* The net asset value per share is computed by dividing net assets applicable to outstanding shares by shares of capital stock outstanding. See Notes to Financial Statements. 68 STATEMENTS OF OPERATIONS -----------------------------------------------------------------
COLUMBIA COLUMBIA COLUMBIA COLUMBIA COMMON STOCK GROWTH INTERNATIONAL STOCK SPECIAL Year Ended December 31, 1998 FUND, INC. FUND, INC. FUND, INC. FUND, INC. ------------- ------------- ------------------- ------------- INVESTMENT INCOME: Income: Interest................................. $ 1,879,282 $ 1,555,149 $ 453,922 $ 5,591,237 Dividends................................ 9,496,591 12,068,714 1,958,431 4,205,461 Foreign taxes withheld (net of reclaims)............................... -- -- (235,625) -- ------------- ------------- ------------------- ------------- Total income........................... 11,375,873 13,623,863 2,176,728 9,796,698 ------------- ------------- ------------------- ------------- Expenses: Investment management fees............... 5,136,336 8,591,359 1,414,138 9,054,501 Shareholder servicing costs.............. 1,221,712 1,269,928 419,311 1,199,754 Reports to shareholders.................. 137,567 296,169 93,468 243,128 Financial information and accounting..... 56,436 65,078 86,043 70,649 Custodian fees........................... 34,144 57,375 82,479 40,932 Bank transaction and checking fees....... 25,658 37,637 29,352 21,344 Registration fees........................ 40,754 76,644 24,972 29,449 Legal, insurance and auditing fees....... 40,411 53,488 37,833 50,818 Other.................................... 10,119 20,121 11,244 13,387 ------------- ------------- ------------------- ------------- Total expenses......................... 6,703,137 10,467,799 2,198,840 10,723,962 ------------- ------------- ------------------- ------------- Net investment income (loss)............... 4,672,736 3,156,064 (22,112) (927,264) ------------- ------------- ------------------- ------------- REALIZED GAIN (LOSS) AND UNREALIZED APPRECIATION (DEPRECIATION) FROM INVESTMENT AND FOREIGN CURRENCY TRANSACTIONS: Net realized gain (loss) from: Investments.............................. 89,973,443 77,263,496 (1,586,408) (544,655)* Foreign currency transactions............ -- -- (1,099,734) -- ------------- ------------- ------------------- ------------- Net realized gain (loss)............... 89,973,443 77,263,496 (2,686,142) (544,655) ------------- ------------- ------------------- ------------- Net unrealized appreciation (depreciation) on: Investments.............................. 89,964,455 322,622,139 19,606,801 150,392,854 Translation of assets and liabilities in foreign currencies...................... -- -- (120,200) -- ------------- ------------- ------------------- ------------- Net unrealized appreciation during the year.................................. 89,964,455 322,622,139 19,486,601 150,392,854 ------------- ------------- ------------------- ------------- Net gain on investment and foreign currency transactions................... 179,937,898 399,885,635 16,800,459 149,848,199 ------------- ------------- ------------------- ------------- Net increase in net assets resulting from operations.............................. $184,610,634 $ 403,041,699 $16,778,347 $ 148,920,935 ------------- ------------- ------------------- ------------- ------------- ------------- ------------------- -------------
* Includes $1,927,092 gain from affiliated issuers. See Notes to Financial Statements. 69 STATEMENTS OF OPERATIONS -----------------------------------------------------------------
COLUMBIA COLUMBIA REAL COLUMBIA COLUMBIA U.S. SMALL CAP ESTATE EQUITY FUND, BALANCED GOVERNMENT SECURITIES Year Ended December 31, 1998 FUND, INC. INC. FUND, INC. FUND, INC. -------------- ------------------- ------------- --------------------- INVESTMENT INCOME: Income: Interest................................. $ 547,539 $ 554,969 $ 29,438,800 $2,119,617 Dividends................................ 270,613 8,613,123 5,498,785 -- -------------- ------------------- ------------- ----------- Total income........................... 818,152 9,168,092 34,937,585 2,119,617 -------------- ------------------- ------------- ----------- Expenses: Investment management fees............... 1,246,153 1,221,370 4,512,177 194,507 Shareholder servicing costs.............. 233,858 228,699 1,098,799 62,014 Reports to shareholders.................. 49,508 50,328 153,377 13,383 Financial information and accounting..... 42,959 44,854 68,432 38,919 Custodian fees........................... 4,987 6,555 35,784 1,551 Bank transaction and checking fees....... 25,574 11,816 33,805 1,748 Registration fees........................ 45,129 66,511 74,704 11,685 Legal, insurance and auditing fees....... 8,953 24,272 45,436 21,289 Other.................................... 1,918 2,252 11,189 562 -------------- ------------------- ------------- ----------- Total expenses......................... 1,659,039 1,656,657 6,033,703 345,658 -------------- ------------------- ------------- ----------- Net investment income (loss)............... (840,887) 7,511,435 28,903,882 1,773,959 -------------- ------------------- ------------- ----------- REALIZED GAIN (LOSS) AND UNREALIZED APPRECIATION (DEPRECIATION) FROM INVESTMENT TRANSACTIONS: Net realized gain (loss) from investments............................... (10,185,536) (225,330) 65,831,341 463,379 Net unrealized appreciation (depreciation) on investments during the year............ 16,364,251 (29,435,976) 68,447,300 181,795 -------------- ------------------- ------------- ----------- Net gain (loss) on investments............. 6,178,715 (29,661,306) 134,278,641 645,174 -------------- ------------------- ------------- ----------- Net increase (decrease) in net assets resulting from operations................. $ 5,337,828 $(22,149,871) $ 163,182,523 $2,419,133 -------------- ------------------- ------------- ----------- -------------- ------------------- ------------- -----------
See Notes to Financial Statements. 70 STATEMENTS OF OPERATIONS -----------------------------------------------------------------
COLUMBIA FIXED COLUMBIA COLUMBIA COLUMBIA INCOME SECURITIES MUNICIPAL BOND HIGH YIELD DAILY INCOME Year Ended December 31, 1998 FUND, INC. FUND, INC. FUND, INC. COMPANY ----------------- -------------- ----------- ------------ INVESTMENT INCOME: Income: Interest................................. $27,879,133 $22,316,793 $4,165,777 $59,398,908 ----------------- -------------- ----------- ------------ Total income........................... 27,879,133 22,316,793 4,165,777 59,398,908 ----------------- -------------- ----------- ------------ Expenses: Investment management fees............... 2,050,200 2,149,321 292,249 5,005,974 Shareholder servicing costs.............. 336,622 128,224 61,207 940,235 Reports to shareholders.................. 78,431 25,628 16,578 195,509 Financial information and accounting..... 56,632 84,201 42,751 60,219 Custodian fees........................... 16,274 17,029 1,946 42,323 Bank transaction and checking fees....... 21,072 6,758 3,700 197,378 Registration fees........................ 41,425 24,346 26,741 53,181 Legal, insurance and auditing fees....... 41,364 35,703 22,118 46,866 Other.................................... 5,360 15,433 1,458 15,007 ----------------- -------------- ----------- ------------ Total expenses......................... 2,647,380 2,486,643 468,748 6,556,692 ----------------- -------------- ----------- ------------ Net investment income...................... 25,231,753 19,830,150 3,697,029 52,842,216 ----------------- -------------- ----------- ------------ REALIZED GAIN AND UNREALIZED APPRECIATION (DEPRECIATION) FROM INVESTMENT TRANSACTIONS: Net realized gain from investments......... 4,181,058 3,856,207 277,970 -- Net unrealized depreciation on investments during the year........................... (283,034) (263,686) (968,024) -- ----------------- -------------- ----------- ------------ Net gain (loss) on investments............. 3,898,024 3,592,521 (690,054) -- ----------------- -------------- ----------- ------------ Net increase in net assets resulting from operations................................ $29,129,777 $23,422,671 $3,006,975 $52,842,216 ----------------- -------------- ----------- ------------ ----------------- -------------- ----------- ------------
See Notes to Financial Statements. 71 STATEMENTS OF CHANGES IN NET ASSETS -----------------------------------------------------------------
COLUMBIA COLUMBIA COLUMBIA COMMON STOCK GROWTH INTERNATIONAL STOCK Years Ended December 31, FUND, INC. FUND, INC. FUND, INC. --------------------------- ------------------------------- --------------------------- 1998 1997 1998 1997 1998 1997 ------------ ------------ -------------- -------------- ------------ ------------ INCREASE (DECREASE) IN NET ASSETS: Operations: Net investment income (loss)...................... $ 4,672,736 $ 9,354,883 $ 3,156,064 $ 6,692,676 $ (22,112) $ 276,986 Net realized gain (loss) from: Investments................ 89,973,443 61,630,849 77,263,496 150,238,079 (1,586,408) 17,347,526 Foreign currency transactions.............. -- -- -- -- (1,099,734) (286,335) Change in net unrealized appreciation (depreciation) on: Investments................ 89,964,455 76,981,002 322,622,139 122,000,869 19,606,801 (1,735,993) Translation of assets and liabilities in foreign currencies................ -- -- -- -- (120,200) (67,221) ------------ ------------ -------------- -------------- ------------ ------------ Net increase in net assets resulting from operations... 184,610,634 147,966,734 403,041,699 278,931,624 16,778,347 15,534,963 Distributions to shareholders: From net investment income... (4,552,680) (8,468,207) (3,081,414) (5,838,423) -- -- In excess of net investment income...................... (69,472)* -- (50,967)* -- -- -- From net realized gain from investment transactions and foreign currency transactions................ (91,091,522) (61,141,619) (79,945,012) (148,364,649) (65,195) (16,691,558) In excess of net realized gain from investment transactions................ (4,001,636)* -- (5,463,435)* -- -- -- Capital share transactions, net........................... (71,654,578) 168,789,109 113,604,981 136,089,618 (28,800,687) 21,927,539 ------------ ------------ -------------- -------------- ------------ ------------ Net increase (decrease) in net assets.................. 13,240,746 247,146,017 428,105,852 260,818,170 (12,087,535) 20,770,944 NET ASSETS: Beginning of year.............. 783,905,819 536,759,802 1,324,917,689 1,064,099,519 146,280,535 125,509,591 ------------ ------------ -------------- -------------- ------------ ------------ End of year.................... $797,146,565 $783,905,819 $1,753,023,541 $1,324,917,689 $134,193,000 $146,280,535 ------------ ------------ -------------- -------------- ------------ ------------ ------------ ------------ -------------- -------------- ------------ ------------ - --------------------------------- ------------ ------------ -------------- -------------- ------------ ------------
Undistributed net investment income $ 155,405 $ 1,537,363 $ 31,399 $ 1,999,579 $ -- $ -- * On a tax basis, there was no return of capital.
See Notes to Financial Statements. 72 STATEMENTS OF CHANGES IN NET ASSETS -----------------------------------------------------------------
COLUMBIA COLUMBIA COLUMBIA SPECIAL SMALL CAP REAL ESTATE EQUITY Years Ended December 31, FUND, INC. FUND, INC. FUND, INC. --------------------------------- ---------------------------- ---------------------------- 1998 1997 1998 1997 1998 1997 --------------- --------------- ------------- ------------ ------------- ------------ INCREASE (DECREASE) IN NET ASSETS: Operations: Net investment income (loss)................... $ (927,264) $ 531,773 $ (840,887) $ (443,585) $ 7,511,435 $ 5,578,378 Net realized gain (loss) from investments......... (544,655) 122,678,842 (10,185,536) 4,931,098 (225,330) 3,597,873 Change in net unrealized appreciation (depreciation) on investments.............. 150,392,854 49,916,627 16,364,251 7,895,606 (29,435,976) 16,211,982 --------------- --------------- ------------- ------------ ------------- ------------ Net increase (decrease) in net assets resulting from operations............... 148,920,935 173,127,242 5,337,828 12,383,119 (22,149,871) 25,388,233 Distributions to shareholders: From net investment income................... (254,898) -- -- -- (6,572,683) (4,230,674) From net realized gain from investment transactions............. (230,229) (122,678,842) (12,878) (4,258,935) (2,387) (3,597,873) In excess of net realized gain from investment transactions............. (154,157)* -- -- (243,742)* From tax return of capital.................. -- -- -- -- (940,385) (1,252,467) Capital share transactions, net........................ (428,794,714) (385,860,660) 58,715,948 67,245,755 42,283,240 67,417,742 --------------- --------------- ------------- ------------ ------------- ------------ Net increase (decrease) in net assets............... (280,358,906) (335,566,417) 64,040,898 75,369,939 12,617,914 83,481,219 NET ASSETS: Beginning of year........... 1,249,717,797 1,585,284,214 96,431,309 21,061,370 151,554,440 68,073,221 --------------- --------------- ------------- ------------ ------------- ------------ End of year................. $ 969,358,891 $ 1,249,717,797 $ 160,472,207 $ 96,431,309 $ 164,172,354 $151,554,440 --------------- --------------- ------------- ------------ ------------- ------------ --------------- --------------- ------------- ------------ ------------- ------------ - ------------------------------ --------------- --------------- ------------- ------------ ------------- ------------
Undistributed net investment income $ -- $ 360,073 $ -- $ -- $ -- $ -- * On a tax basis, there was no return of capital.
See Notes to Financial Statements. 73 STATEMENTS OF CHANGES IN NET ASSETS -----------------------------------------------------------------
COLUMBIA COLUMBIA COLUMBIA BALANCED U.S. GOVERNMENT FIXED INCOME SECURITIES Years Ended December 31, FUND, INC. SECURITIES FUND, INC. FUND, INC. --------------------------- -------------------------- ---------------------------- 1998 1997 1998 1997 1998 1997 ------------ ------------ ------------ ------------ ------------- ------------ INCREASE (DECREASE) IN NET ASSETS: Operations: Net investment income.......... $ 28,903,882 $ 29,022,353 $ 1,773,959 $ 1,946,052 $ 25,231,753 $ 23,438,026 Net realized gain from investments................... 65,831,341 62,144,958 463,379 147,024 4,181,058 2,758,117 Change in net unrealized appreciation (depreciation) on investments................... 68,447,300 38,270,990 181,795 63,763 (283,034) 7,594,450 ------------ ------------ ------------ ------------ ------------- ------------ Net increase in net assets resulting from operations..... 163,182,523 129,438,301 2,419,133 2,156,839 29,129,777 33,790,593 Distributions to shareholders: From net investment income..... (28,733,052) (28,593,156) (1,773,959) (1,946,052) (25,231,753) (23,438,026) From net realized gain from investment transactions....... (66,826,702) (61,376,451) (192,702) -- (4,065,757) (847,470) In excess of net realized gain from investment transactions.................. (1,501,528)* -- -- -- -- -- Capital share transactions, net............................. 116,881,261 80,316,642 2,288,719 (3,150,453) 41,165,110 15,406,761 ------------ ------------ ------------ ------------ ------------- ------------ Net increase (decrease) in net assets........................ 183,002,502 119,785,336 2,741,191 (2,939,666) 40,997,377 24,911,858 NET ASSETS: Beginning of year................ 792,378,256 672,592,920 37,836,675 40,776,341 381,332,754 356,420,896 ------------ ------------ ------------ ------------ ------------- ------------ End of year...................... $975,380,758 $792,378,256 $ 40,577,866 $ 37,836,675 $ 422,330,131 $381,332,754 ------------ ------------ ------------ ------------ ------------- ------------ ------------ ------------ ------------ ------------ ------------- ------------ - ----------------------------------- ------------ ------------ ------------ ------------ ------------- ------------
Undistributed net investment income $ 205,849 $ 758,037 $ -- $ -- $ -- $ -- * On a tax basis, there was no return of capital.
See Notes to Financial Statements. 74 STATEMENTS OF CHANGES IN NET ASSETS -----------------------------------------------------------------
COLUMBIA COLUMBIA COLUMBIA MUNICIPAL BOND HIGH YIELD DAILY INCOME Years Ended December 31, FUND, INC. FUND, INC. COMPANY -------------------------- ----------------------------- --------------- 1998 1997 1998 1997 1998 ------------ ------------ ------------- ------------- --------------- INCREASE (DECREASE) IN NET ASSETS: Operations: Net investment income................... $ 19,830,150 $ 19,046,726 $ 3,697,029 $ 2,832,822 $ 52,842,216 Net realized gain from investments...... 3,856,207 2,429,586 277,970 1,148,575 -- Change in net unrealized appreciation (depreciation) on investments.......... (263,686) 10,155,954 (968,024) 279,884 -- ------------ ------------ ------------- ------------- --------------- Net increase in net assets resulting from operations........................ 23,422,671 31,632,266 3,006,975 4,261,281 52,842,216 Distributions to shareholders: From net investment income.............. (19,830,150) (19,046,726) (3,697,029) (2,832,822) (52,842,216) In excess of net investment income...... (10,701)* (4,724)* -- -- -- From net realized gain from investment transactions........................... (4,149,947) (2,276,966) (290,221) (1,136,542) -- Capital share transactions, net........... 54,228,675 23,176,895 19,225,699 10,168,259 (59,954,357) ------------ ------------ ------------- ------------- --------------- Net increase (decrease) in net assets... 53,660,548 33,480,745 18,245,424 10,460,176 (59,954,357) NET ASSETS: Beginning of year......................... 409,148,175 375,667,430 39,278,409 28,818,233 1,169,095,568 ------------ ------------ ------------- ------------- --------------- End of year............................... $462,808,723 $409,148,175 $ 57,523,833 $ 39,278,409 $ 1,109,141,211 ------------ ------------ ------------- ------------- --------------- ------------ ------------ ------------- ------------- --------------- * On a tax basis, there was no return of capital. Years Ended December 31, 1997 --------------- INCREASE (DECREASE) IN NET ASSETS: Operations: Net investment income................... $ 44,915,266 Net realized gain from investments...... -- Change in net unrealized appreciation (depreciation) on investments.......... -- --------------- Net increase in net assets resulting from operations........................ 44,915,266 Distributions to shareholders: From net investment income.............. (44,915,266) In excess of net investment income...... --- From net realized gain from investment transactions........................... -- Capital share transactions, net........... 279,295,599 --------------- Net increase (decrease) in net assets... 279,295,599 NET ASSETS: Beginning of year......................... 889,799,969 --------------- End of year............................... $ 1,169,095,568 --------------- --------------- * On a tax basis, there was no return of ca
See Notes to 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 U.S. Government Securities Fund, Inc. (CUSG), Columbia Fixed Income Securities Fund, Inc. (CFIS), Columbia Municipal Bond Fund, Inc. (CMBF), Columbia High Yield Fund, Inc. (CHYF), and Columbia Daily Income Company (CDIC). 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 for 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. Securities for which market quotations are not readily available will be valued at fair value as determined in good faith under procedures established by and under the general supervision of the Board of Directors of each fund. 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's investment advisor, 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 under consistently applied procedures by or under the supervision of officers of the investment advisor to those Funds, 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 and CBF had investments in such affiliated issuers at December 31, 1998 as follows:
BALANCE OF DIVIDEND INCOME SHARES/PRINCIPAL BALANCE OF JANUARY 1, HELD GROSS GROSS SHARES HELD VALUE 1998- DECEMBER 31, PURCHASES & SALES & DECEMBER 31, DECEMBER 31, DECEMBER 31, NAME OF ISSUER 1997 ADDITIONS REDUCTIONS 1998 1998 1998 - ----------------------------------------- -------------- ----------- ---------- ------------ --------------- --------------- Columbia Special Fund (a) Abercrombie & Fitch Co................... 800,000 50,000 475,000 375,000 $ 26,531,250* AnnTaylor Stores Corp.................... 1,240,000 160,000 921,000 479,000 18,890,562* Celadon Group, Inc....................... 500,000 500,000 -- -- Gadzooks, Inc............................ 700,000 10,000 710,000 -- -- Integrated Measurement Syst.............. 300,000 300,000 -- -- Osmonics, Inc............................ 869,000 108,300 977,300 -- -- Resmed, Inc.............................. 500,000 460,000 174,000 786,000 35,664,750 Schnitzer Steel Industries............... 550,000 550,000 -- -- $ 52,500 Vans, Inc................................ 860,000 15,000 360,000 515,000 3,540,625* --------------- ------- 84,627,187 52,500 Columbia Balanced Fund (b) Fleet Mortgage Group, Inc................ 550,000 550,000 -- -- --------------- ------- Total Affiliated Issuers.................................................................... $ 84,627,187 $ 52,500 --------------- ------- --------------- -------
* Not an affiliate at 12/31/1998. (a) Fund held or holds 5% or more of that issuer's outstanding shares. (b) Fund held an investment under common control. 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 $1,097,544 and is included in net realized loss from foreign currency transactions. CISF had no outstanding forward contracts on December 31, 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 investments held. Such fluctuations are included with the net realized and unrealized gain or loss from investments. Reported net realized foreign currency gains or losses arise from the sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on 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. Amortization of discount or premium is recorded over the life of the instrument. 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. 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, passive foreign investment company income 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 income 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 investment securities, since it is the intention of the Funds to comply with the provisions of the Internal Revenue Code available to certain regulated 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 As of December 31, 1998, certain Funds have capital loss carryovers available to offset future capital gains as follows:
YEAR CARRYOVER EXPIRES CISF CSF CSCF - ----------------------- --------- --------- --------- 2006 $1,410,029 $1,021,462 $9,350,313
To the extent that the capital loss carryovers are used to offset any capital gains, it is unlikely that the gains so offset will be distributed to shareholders. 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 December 31, 1998, 1% of the Fund's debt securities were rated Baa, 43% were rated Ba, and 56% 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 December 31, 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..... 1$,129,094,921 $1,612,295,388 $ 97,930,955 $1,279,917,477 ----------------- ---------------- ------------------- ---------------- ----------------- ---------------- ------------------- ---------------- SALES AND MATURITIES: Investment securities other than U.S. Government obligations..... 1$,251,336,234 $1,584,390,311 $118,336,084 $1,700,822,134 ----------------- ---------------- ------------------- ---------------- ----------------- ---------------- ------------------- ---------------- NET REALIZED GAIN (LOSS): Investment securities other than U.S. Government obligations..... $ 89,973,443 $ 77,263,496 $ (1,586,408) $ (544,655) ----------------- ---------------- ------------------- ---------------- ----------------- ---------------- ------------------- ---------------- UNREALIZED APPRECIATION (DEPRECIATION) AS OF DECEMBER 31, 1998: Appreciation..................... $235,093,132 $ 631,181,726 $ 40,516,921 $ 308,916,638 Depreciation..................... (7,259,566) (5,291,565) (6,002,995) (20,324,079) ----------------- ---------------- ------------------- ---------------- Net unrealized appreciation.... $227,833,566 $ 625,890,161 $ 34,513,926 $ 288,592,559 ----------------- ---------------- ------------------- ---------------- ----------------- ---------------- ------------------- ---------------- UNREALIZED APPRECIATION (DEPRECIATION) FOR FEDERAL INCOME TAX PURPOSES AS OF DECEMBER 31, 1998: Appreciation..................... $233,744,884 $ 627,928,419 $ 40,511,159 $ 308,719,262 Depreciation..................... (8,844,654) (6,485,616) (6,182,830) (20,433,652) ----------------- ---------------- ------------------- ---------------- Net unrealized appreciation.... $224,900,230 $ 621,442,803 $ 34,328,329 $ 288,285,610 ----------------- ---------------- ------------------- ---------------- ----------------- ---------------- ------------------- ---------------- For federal income tax purposes, the cost of investments owned at December 31, 1998................. $561,749,172 $1,108,178,096 $ 93,546,963 $ 659,242,770 ----------------- ---------------- ------------------- ---------------- ----------------- ---------------- ------------------- ----------------
The net realized gain for CCSF, CGF, & CSF includes proceeds of $75,163, $345,394, & $777,028, 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 U.S. SMALL CAP EQUITY FUND, INC. BALANCED GOVERNMENT SECURITIES FUND, INC. (CSCF) (CREF) FUND, INC. (CBF) FUND, INC. (CUSG) ----------------- ----------------- ---------------- --------------------- PURCHASES: Investment securities other than U.S. Government obligations............... $233,395,351 $ 53,045,531 $ 729,928,631 $ -- U.S. Government obligations........... -- -- 436,330,135 71,008,711 ----------------- ----------------- ---------------- --------------------- Total purchases..................... $233,395,351 $ 53,045,531 $1,166,258,766 $71,008,711 ----------------- ----------------- ---------------- --------------------- ----------------- ----------------- ---------------- --------------------- SALES AND MATURITIES: Investment securities other than U.S. Government obligations............... $180,538,702 $ 8,610,059 $ 718,083,911 $ -- U.S. Government obligations........... -- -- 403,682,023 69,047,865 ----------------- ----------------- ---------------- --------------------- Total sales and maturities.......... $180,538,702 $ 8,610,059 $1,121,765,934 $69,047,865 ----------------- ----------------- ---------------- --------------------- ----------------- ----------------- ---------------- --------------------- NET REALIZED GAIN (LOSS): Investment securities other than U.S. Government obligations............... $(10,185,536) $ (225,330) $ 63,610,090 $ -- U.S. Government obligations........... -- -- 2,221,251 463,379 ----------------- ----------------- ---------------- --------------------- Total net realized gain (loss)...... $(10,185,536) $ (225,330) $ 65,831,341 $ 463,379 ----------------- ----------------- ---------------- --------------------- ----------------- ----------------- ---------------- --------------------- UNREALIZED APPRECIATION (DEPRECIATION) AS OF DECEMBER 31, 1998: Appreciation.......................... $ 30,641,231 $ 10,580,861 $ 169,395,015 $ 315,675 Depreciation.......................... (4,892,621) (12,900,023) (6,627,357) (42,930) ----------------- ----------------- ---------------- --------------------- Net unrealized appreciation (depreciation)..................... $ 25,748,610 $ (2,319,162) $ 162,767,658 $ 272,745 ----------------- ----------------- ---------------- --------------------- ----------------- ----------------- ---------------- --------------------- UNREALIZED APPRECIATION (DEPRECIATION) FOR FEDERAL INCOME TAX PURPOSES AS OF DECEMBER 31, 1998: Appreciation.......................... $ 29,887,958 $ 12,047,904 $ 168,462,123 $ 315,675 Depreciation.......................... (5,034,071) (11,819,293) (6,640,232) (42,930) ----------------- ----------------- ---------------- --------------------- Net unrealized appreciation......... $ 24,853,887 $ 228,611 $ 161,821,891 $ 272,745 ----------------- ----------------- ---------------- --------------------- ----------------- ----------------- ---------------- --------------------- For federal income tax purposes, the cost of investments owned at December 31, 1998............................... $127,519,538 $154,707,312 $ 798,675,608 $39,239,616 ----------------- ----------------- ---------------- --------------------- ----------------- ----------------- ---------------- ---------------------
81 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- -- 2. INVESTMENT TRANSACTIONS, CONTINUED --
COLUMBIA FIXED COLUMBIA COLUMBIA COLUMBIA INCOME SECURITIES MUNICIPAL BOND HIGH YIELD DAILY INCOME FUND, INC. (CFIS) FUND, INC. (CMBF) FUND, INC. (CHYF) COMPANY (CDIC) ----------------- ----------------- ----------------- --------------- PURCHASES: Investment securities other than U.S. Government obligations............... $117,932,587 $118,516,226 $52,133,634 $9,300,863,600 U.S. Government obligations........... 356,343,890 -- -- 29,534,303 ----------------- ----------------- ----------------- --------------- Total purchases..................... $474,276,477 $118,516,226 $52,133,634 $9,330,397,903 ----------------- ----------------- ----------------- --------------- ----------------- ----------------- ----------------- --------------- SALES AND MATURITIES: Investment securities other than U.S. Government obligations............... $ 79,673,898 $ 69,367,033 $35,136,859 $9,461,984,392 U.S. Government obligations........... 344,972,034 -- -- -- ----------------- ----------------- ----------------- --------------- Total sales and maturities.......... $424,645,932 $ 69,367,033 $35,136,859 $9,461,984,392 ----------------- ----------------- ----------------- --------------- ----------------- ----------------- ----------------- --------------- NET REALIZED GAIN: Investment securities other than U.S. Government obligations............... $ 946,821 $ 3,856,207 $ 277,970 U.S. Government obligations........... 3,234,237 -- -- ----------------- ----------------- ----------------- Total net realized gain............. $ 4,181,058 $ 3,856,207 $ 277,970 ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- UNREALIZED APPRECIATION (DEPRECIATION) AS OF DECEMBER 31, 1998: Appreciation.......................... $ 10,730,450 $ 24,047,833 $ 885,498 Depreciation.......................... (1,413,590) (248,149) (722,858) ----------------- ----------------- ----------------- Net unrealized appreciation......... $ 9,316,860 $ 23,799,684 $ 162,640 ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- UNREALIZED APPRECIATION (DEPRECIATION) FOR FEDERAL INCOME TAX PURPOSES AS OF DECEMBER 31, 1998: Appreciation.......................... $ 10,730,450 $ 24,038,889 $ 858,123 Depreciation.......................... (1,413,590) (259,561) (730,895) ----------------- ----------------- ----------------- Net unrealized appreciation......... $ 9,316,860 $ 23,779,328 $ 127,228 ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- For federal income tax purposes, the cost of investments owned at December 31, 1998............................... $405,960,645 $427,458,729 $51,394,447 $1,100,606,014 ----------------- ----------------- ----------------- --------------- ----------------- ----------------- ----------------- ---------------
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................... 13,269,125 12,609,458 12,502,270 9,453,209 6,757,057 6,414,910 Shares issued for reinvestment of dividends................. 3,761,670 3,039,307 1,958,431 4,230,608 4,073 1,146,267 ------------- ------------- -------------- -------------- ------------- ------------- 17,030,795 15,648,765 14,460,701 13,683,817 6,761,130 7,561,177 Less shares redeemed.......... (19,963,393) (7,908,821) (11,802,719) (9,715,431) (8,752,521) (5,939,634) ------------- ------------- -------------- -------------- ------------- ------------- Net increase (decrease) in shares....................... (2,932,598) 7,739,944 2,657,982 3,968,386 (1,991,391) 1,621,543 ------------- ------------- -------------- -------------- ------------- ------------- AMOUNTS: Sales......................... $ 313,993,826 $ 277,332,028 $ 483,570,772 $ 329,861,186 $ 96,626,658 $ 98,515,375 Reinvestment of dividends..... 91,734,934 66,961,124 83,252,983 145,279,077 62,933 15,703,862 ------------- ------------- -------------- -------------- ------------- ------------- 405,728,760 344,293,152 566,823,755 475,140,263 96,689,591 114,219,237 Less redemptions.............. (477,383,338) (175,504,043) (453,218,774) (339,050,645) (125,490,278) (92,291,698) ------------- ------------- -------------- -------------- ------------- ------------- Net increase (decrease)....... $ (71,654,578) $ 168,789,109 $ 113,604,981 $ 136,089,618 $ (28,800,687) $ 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................... 15,749,843 17,301,738 8,487,025 6,092,245 9,988,402 9,713,082 Shares issued for reinvestment of dividends................. 19,697 5,787,116 684 229,093 416,553 444,904 -------------- -------------- ------------- ------------ ------------- -------------- 15,769,540 23,088,854 8,487,709 6,321,338 10,404,955 10,157,986 Less shares redeemed.......... (36,402,850) (41,278,382) (5,074,580) (2,149,149) (8,048,667) (6,308,136) -------------- -------------- ------------- ------------ ------------- -------------- Net increase (decrease) in shares....................... (20,633,310) (18,189,528) 3,413,129 4,172,189 2,356,288 3,849,850 -------------- -------------- ------------- ------------ ------------- -------------- AMOUNTS: Sales......................... $ 326,466,750 $ 365,659,534 $ 142,918,397 $ 97,707,061 $ 171,289,503 $ 168,764,062 Reinvestment of dividends..... 465,243 117,246,979 11,916 3,814,406 6,951,254 8,209,513 -------------- -------------- ------------- ------------ ------------- -------------- 326,931,993 482,906,513 142,930,313 101,521,467 178,240,757 176,973,575 Less redemptions.............. (755,726,707) (868,767,173) (84,214,365) (34,275,712) (135,957,517) (109,555,833) -------------- -------------- ------------- ------------ ------------- -------------- Net increase (decrease)....... $ (428,794,714) $ (385,860,660) $ 58,715,948 $ 67,245,755 $ 42,283,240 $ 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 U.S. COLUMBIA FIXED BALANCED GOVERNMENT SECURITIES INCOME SECURITIES FUND, INC. (CBF) FUND, INC. (CUSG) FUND, INC. (CFIS) ----------------------------- --------------------------- ----------------------------- 1998 1997 1998 1997 1998 1997 ------------- ------------- ------------ ------------ ------------- ------------- SHARES: Shares sold................... 13,507,447 11,631,390 2,328,032 1,678,641 12,025,253 8,909,289 Shares issued for reinvestment of dividends................. 4,168,672 4,143,787 220,206 214,917 1,746,053 1,456,925 ------------- ------------- ------------ ------------ ------------- ------------- 17,676,119 15,775,177 2,548,238 1,893,558 13,771,306 10,366,214 Less shares redeemed.......... (12,580,813) (11,880,698) (2,273,646) (2,278,311) (10,720,493) (9,188,186) ------------- ------------- ------------ ------------ ------------- ------------- Net increase (decrease) in shares....................... 5,095,306 3,894,479 274,592 (384,753) 3,050,813 1,178,028 ------------- ------------- ------------ ------------ ------------- ------------- ------------- ------------- ------------ ------------ ------------- ------------- AMOUNTS: Sales......................... $ 307,811,840 $ 255,961,711 $ 19,453,757 $ 13,843,228 $ 162,360,726 $ 117,209,758 Reinvestment of dividends..... 96,330,655 89,309,106 1,841,909 1,771,509 23,546,526 19,185,059 ------------- ------------- ------------ ------------ ------------- ------------- 404,142,495 345,270,817 21,295,666 15,614,737 185,907,252 136,394,817 Less redemptions.............. (287,261,234) (264,954,175) (19,006,947) (18,765,190) (144,742,142) (120,988,056) ------------- ------------- ------------ ------------ ------------- ------------- Net increase (decrease)....... $ 116,881,261 $ 80,316,642 $ 2,288,719 $ (3,150,453) $ 41,165,110 $ 15,406,761 ------------- ------------- ------------ ------------ ------------- ------------- ------------- ------------- ------------ ------------ ------------- ------------- Capital stock authorized (shares)..................... 100,000,000 100,000,000 200,000,000 Par Value..................... no par $ .01 $ .01
COLUMBIA COLUMBIA COLUMBIA MUNICIPAL BOND HIGH YIELD DAILY INCOME FUND, INC. (CMBF) FUND, INC. (CHYF) COMPANY (CDIC) ----------------------------- ----------------------------- --------------- 1998 1997 1998 1997 1998 ------------- ------------- ------------- ------------- --------------- SHARES: Shares sold...................... 10,282,298 6,372,612 5,050,748 2,127,208 1,712,535,787 Shares issued for reinvestment of dividends....................... 1,535,194 1,369,697 350,237 342,994 52,814,144 ------------- ------------- ------------- ------------- --------------- 11,817,492 7,742,309 5,400,985 2,470,202 1,765,349,931 Less shares redeemed............. (7,484,819) (5,853,872) (3,469,996) (1,457,004) (1,825,304,288) ------------- ------------- ------------- ------------- --------------- Net increase (decrease) in shares.......................... 4,332,673 1,888,437 1,930,989 1,013,198 (59,954,357) ------------- ------------- ------------- ------------- --------------- ------------- ------------- ------------- ------------- --------------- AMOUNTS: Sales............................ $ 128,573,968 $ 77,959,329 $ 50,292,553 $ 21,499,878 $ 1,712,535,787 Reinvestment of dividends........ 19,177,222 16,813,005 3,493,216 3,460,890 52,814,144 ------------- ------------- ------------- ------------- --------------- 147,751,190 94,772,334 53,785,769 24,960,768 1,765,349,931 Less redemptions................. (93,522,515) (71,595,439) (34,560,070) (14,792,509) (1,825,304,288) ------------- ------------- ------------- ------------- --------------- Net increase (decrease).......... $ 54,228,675 $ 23,176,895 $ 19,225,699 $ 10,168,259 $ (59,954,357) ------------- ------------- ------------- ------------- --------------- ------------- ------------- ------------- ------------- --------------- Capital stock authorized (shares)........................ 100,000,000 100,000,000 2,000,000,000 Par Value........................ $ .01 no par $ .001 1997 --------------- SHARES: Shares sold...................... 1,948,660,105 Shares issued for reinvestment of dividends....................... 44,892,534 --------------- 1,993,552,639 Less shares redeemed............. (1,714,257,040) --------------- Net increase (decrease) in shares.......................... 279,295,599 --------------- --------------- AMOUNTS: Sales............................ $ 1,948,660,105 Reinvestment of dividends........ 44,892,534 --------------- 1,993,552,639 Less redemptions................. (1,714,257,040) --------------- Net increase (decrease).......... $ 279,295,599 --------------- --------------- Capital stock authorized (shares)........................ Par Value........................
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..... $5,136,336 $8,591,359 $1,414,138 $9,054,501 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; 0.625 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)........... $566,008 $1,070,063 $351,255 $883,820 Fees earned by directors not affiliated with each Fund's investment adviser, transfer agent, or Columbia Management Co..................................... $8,409 $15,130 $1,413 $10,492
COLUMBIA COLUMBIA COLUMBIA COLUMBIA U.S. SMALL CAP REAL ESTATE EQUITY BALANCED GOVERNMENT SECURITIES FUND, INC. (CSCF) FUND, INC. (CREF) FUND, INC. (CBF) FUND, INC. (CUSG) ----------------- ------------------ ---------------- --------------------- Investment management fees incurred..... $1,246,153 $1,221,370 $4,512,177 $194,507 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% Transfer agent fee (included in shareholder servicing costs)........... $205,425 $196,454 $631,375 $48,648 Fees earned by directors not affiliated with each Fund's investment adviser, transfer agent, or Columbia Management Co..................................... $1,206 $1,629 $8,884 $390
85 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- -- 4. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES, CONTINUED --
COLUMBIA FIXED COLUMBIA COLUMBIA COLUMBIA INCOME SECURITIES MUNICIPAL BOND HIGH YIELD DAILY INCOME FUND, INC. (CFIS) FUND, INC. (CMBF) FUND, INC. (CHYF) COMPANY (CDIC) ----------------- ----------------- ----------------- ------------------ Investment management fees incurred..... $2,050,200 $2,149,321 $292,249 $5,005,974 Investment management fee computation basis (percentage of daily net assets per annum)............................. 0.50 of 1% 0.50 of 1% 0.60 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)........... $279,982 $121,757 $54,467 $734,286 Fees earned by directors not affiliated with each Fund's investment adviser, transfer agent, or Columbia Management Co..................................... $4,081 $4,276 $481 $10,609 Value of investments held at December 31, 1998 by: Columbia Management Co................ $1,091,186 $6,856,080 $27,551,924 Columbia Funds Management Company..... $248,322 $1,887,379 $22,773,231
The investment adviser of the Funds is Columbia Funds Management Company (CFMC). The transfer agent for the Funds is Columbia Trust Company (CTC), a majority owned subsidiary of CFMC. The transfer agent is compensated based on a per account fee. CFMC, CTC and Columbia Management Company (CMC), an affiliated company, are indirect subsidiaries of Fleet Financial Group, Inc. (Fleet), a publicly owned multi-bank holding company registered under the Bank Holding Company Act of 1956. 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. Columbia Common Stock Fund, Columbia Special Fund and Columbia Balanced Fund paid $5,190, $3,000 and $1,080 in brokerage commissions to Quick & Reilly, Inc., an affiliate, during the fiscal year ending December 31, 1998. 86 REPORT OF INDEPENDENT ACCOUNTANTS ----------------------------------------------------------------- TO THE SHAREHOLDERS AND BOARD OF DIRECTORS, 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 U.S. Government Securities Fund, Inc. (CUSG) Columbia Fixed Income Securities Fund, Inc. (CFIS) Columbia Municipal Bond Fund, Inc. (CMBF) Columbia High Yield Fund, Inc. (CHYF) Columbia Daily Income Company (CDIC) In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of each of the twelve funds comprising the Columbia Funds (the "Funds"), investment companies, at December 31, 1998, and the results of their operations and the changes in their net assets for the years ended December 31, 1998 and 1997, and the financial highlights for the periods presented therein, in conformity with generally accepted accounting principles. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Funds' management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with generally accepted auditing standards which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities owned as of December 31, 1998 by correspondence with the custodians and brokers, provide a reasonable basis for the opinion expressed above. PRICEWATERHOUSECOOPERS LLP Portland, Oregon February 12, 1999 87 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 97204-1268 --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-----