N-CSR 1 file001.txt LIBERTY-STEIN ROE FUNDS INVESTMENT TRUST UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-4978 --------------------- Liberty-Stein Roe Funds Investment Trust ------------------------------------------------------------------------------ (Exact name of registrant as specified in charter) One Financial Center, Boston, Massachusetts 02111 ------------------------------------------------------------------------------ (Address of principal executive offices) (Zip code) Jean S. Loewenberg, Esq. Columbia Management Group, Inc. One Financial Center Boston, MA 02111 ------------------------------------------------------------------------------ (Name and address of agent for service) Registrant's telephone number, including area code: 1-617-426-3750 ------------------- Date of fiscal year end: October 31, 2003 ------------------ Date of reporting period: April 30, 2003 ----------------- Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles. A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. ss. 3507. ITEM 1. REPORTS TO STOCKHOLDERS. LIBERTY THEMATIC EQUITY FUNDS Semiannual Report April 30, 2003 [photo of man smiling] ELIMINATE CLUTTER IN TWO EASY STEPS. POINT. CLICK. LIBERTY EDELIVERY For more information about receiving your shareholder reports electronically, call us at 800-345-6611. To sign up for eDelivery, visit us online at www.libertyfunds.com. LIBERTY THEMATIC EQUITY FUNDS Semiannual Report April 30, 2003 [photo of man smiling] ELIMINATE CLUTTER IN TWO EASY STEPS. POINT. CLICK. LIBERTY EDELIVERY To sign up for eDelivery, go to www.icsdelivery.com President's Message [photo of Joseph R. Palombo] Dear Shareholder: After three years of declining equity values, the US stock market rallied over the past six months and many foreign stock markets followed. However, most foreign markets trailed the US in both the timing and the level of their recoveries. An apparent victory in Iraq and signs of improving economic activity helped offset concerns over mounting tensions with North Korea and the impact of the deadly SARS epidemic. Although the Federal Reserve has taken the lead in stimulating economic growth through low interest rates, they remain a concern in Europe, where growth is still sluggish. In the report that follows, the lead manager of the funds' investment team will provide a more detailed discussion of the events of the period and factors that affected fund performance. CONSOLIDATION--AND A NEW NAME I am pleased to announce that, effective April 1, 2003, six of the asset management firms brought together when Columbia Management Group, Inc. was formed were consolidated and renamed Columbia Management Advisors, Inc. (Columbia Management). This consolidation does not affect the management or investment objectives of your fund and is the next step in our efforts to create a consistent identity and to streamline our organization. By consolidating these firms, we are able to create a more efficient organizational structure and strengthen certain key functions, such as research. Although the name of the asset manager familiar to you has changed, what hasn't changed is the commitment of our specialized investment teams to a multi-disciplined approach to investing, focused on our goal of offering shareholders the best products and services. As always, we thank you for choosing Liberty funds to build toward your long-term financial goals. Sincerely, /s/ Joseph R. Palombo Joseph R. Palombo President Meet the new president Joseph R. Palombo, president and chairman of the Board of Trustees and executive vice president for Liberty Funds, is also chief operating officer of Columbia Management. Mr. Palombo has over 19 years of experience in the financial services industry. Prior to joining Columbia Management, he was chief operating officer and chief compliance officer for Putnam Mutual Funds. Prior to that, he was a partner at Coopers & Lybrand. Mr. Palombo received his degree in economics/accounting from the College of the Holy Cross, where he was a member of Phi Beta Kappa. He earned his master's degree in taxation from Bentley College and participated in the Executive Program at the Amos B. Tuck School at Dartmouth College. NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE Economic and market conditions change frequently. There is no assurance that trends described in this report will continue or commence. Performance Information -- Liberty Global Thematic Equity Fund VALUE OF A $10,000 INVESTMENT 1/2/01 - 4/30/03 PERFORMANCE OF A $10,000 INVESTMENT 1/2/01 - 4/30/03 ($) without with sales sales charge charge -------------------------------------- Class Z 6,163 n/a [mountain chart data]: Class Z shares MSCI World Index 1/2001 $10,000 $10,000 10,424 10,193 9,556 9,331 8,737 8,716 9,467 9,358 9,338 9,236 9,042 8,946 8,766 8,826 8,302 8,401 7,493 7,660 7,680 7,806 8,174 8,267 8,351 8,318 7,887 8,065 7,738 7,994 8,064 8,363 7,634 8,064 7,564 8,077 7,169 7,586 6,547 6,946 6,478 6,958 5,757 6,192 6,290 6,648 6,566 7,006 6,211 6,665 5,955 6,462 5,787 6,349 5,728 6,328 4/2003 6,163 6,889 MUTUAL FUND PERFORMANCE CHANGES OVER TIME. PLEASE VISIT WWW.LIBERTYFUNDS.COM FOR DAILY PERFORMANCE UPDATES. Past performance is no guarantee of future investment results. The principal value and investment returns will fluctuate, resulting in a gain or loss on sale. The above illustration assumes a $10,000 investment made on January 2, 2001 (December 31, 2000 for the Index), and reinvestment of income and capital gains distributions. The Morgan Stanley Capital International World (MSCI World) Index is an unmanaged group of securities that differs from the composition of any Liberty fund. Unlike the fund, an index is not an investment, does not incur fees or expenses and is not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index. Foreign investing involves market, political, currency and accounting risks not associated with domestic securities. AVERAGE ANNUAL TOTAL RETURN AS OF 4/30/03 (%) Share class Z Inception date 1/2/01 ------------------------------------------------ without sales charge ------------------------------------------------ 6-month (cumulative) -2.04 ------------------------------------------------ 1-year -19.28 ------------------------------------------------ Life -18.77 ------------------------------------------------ AVERAGE ANNUAL TOTAL RETURN AS OF 3/31/03 (%) Share class Z ------------------------------------------------ without sales charge ------------------------------------------------ 6-month (cumulative) -0.51 ------------------------------------------------ 1-year -28.97 ------------------------------------------------ Life -21.96 ------------------------------------------------ Past performance is no guarantee of future investment results. The principal value and investment returns will fluctuate, resulting in a gain or loss on sale. All results shown assume reinvestment of distributions. Performance results reflect any voluntary waivers or reimbursements of fund expenses by the advisor or its affiliates. Absent these waivers or reimbursement arrangements, performance results would have been lower. The graph and table do not reflect the deduction of taxes a shareholder would pay on fund distributions or redemption of fund shares. Class Z shares may be purchased by, among others: any shareholder (and family members) of a fund distributed by Liberty Funds Distributor, Inc. (LFDI) who (i) hold class Z shares, (ii) who holds class A shares that were obtained by exchanging with class Z shares, or (iii) who purchased no-load shares of funds merged with funds distributed by LFDI; clients of fee-based brokers-dealers or registered investment advisors that recommend the purchase of fund shares; any trustee or director (and family members) of any fund distributed by LFDI; insurance companies, trust companies, banks, endowments, investment companies and foundations; and retirement plans with assets of at least $5 million. Investment minimums vary. For further information, please consult the fund prospectus. 1 sidebar box: Portfolio Manager's Report-- Liberty Global Thematic Equity Fund TOP 10 HOLDINGS as of 4/30/03 (%) Citigroup 5.2 Pfizer 5.0 Exxon Mobil 3.9 Johnson &Johnson 3.9 American International Group 3.4 General Electric 3.3 ENI, S.p.A. 3.2 British Sky Broadcasting Group 3.0 Nestle SA Registered Shares 2.9 Microsoft 2.6 Portfolio holdings are calculated as a percentage of net assets. Since the fund is actively managed, there is no guarantee the fund will continue to maintain the same portfolio in the future. TOP 5 COUNTRIES as of 4/30/03 (%) United States 61.1 United Kingdom 8.1 Switzerland 7.6 Japan 7.3 Italy 5.3 Country breakdown is calculated as a percentage of total investments. Since the fund is actively managed, there can be no guarantee the fund will continue to invest in these countries in the future. BOUGHT -------------------------------------------------------------------------------- ELI LILLY (2.6% of net assets) is a pure pharmaceutical company with a rich product portfolio and a strong line-up of new drugs in development. We expect the company to achieve 15%-20% earnings per share growth in the years ahead. SOLD -------------------------------------------------------------------------------- We sold MERCK to purchase Eli Lilly. With a weaker product line, Merck is expected to increase sales by only 5% in the coming years, compared to 10% for Eli Lilly. For the six-month period that ended April 30, 2003, Liberty Global Thematic Equity Fund class Z shares returned negative 2.04% without sales charge. During the period, the fund underperformed its benchmark, the MSCI World Index, which returned 3.62%. The fund's poor relative performance was due primarily to stock selection. NEGATIVES OUTWEIGHED POSITIVES Against the backdrop of looming conflict in Iraq, stock markets worldwide were characterized by heightened volatility during the period. The fund benefited from a reduced stake in Japan relative to its benchmark, but was hurt by its greater exposure in Europe. Sector allocation somewhat hampered fund performance, as overweights in the weaker industrials and consumer discretionary groups offset stronger returns from overweights in the information technology and health care areas. GOOD RETURNS FROM INFORMATION AND HOME Mastering Information and The Home were the two most successful themes. Within Mastering Information, General Electric (3.3% of net assets) performed well during the period.1 In The Home theme, Home Depot (1.6% of net assets) rose in February and March, as the company's restructuring measures began to show results, particularly in the performance of new stores. DISAPPOINTMENTS IN OUTSOURCING AND BRANDING In Outsourcing and Productivity, security services providers Chubb, Secom and Securitas (1.1% of net assets) all detracted from performance. The valuations of all three companies are based on growth several years ahead, and, given the jittery state of the markets recently, this had an adverse effect on price performance. In the Saving for Retirement theme, AIG (3.4% of net assets) fared poorly due to a one-time charge of $1.8 billion related to insurance policies written in the late 1990s. We eliminated our positions in Chubb and Secom during the period. In the Cross Selling theme, Cendant helped performance as management's dedicated effort to trim the organization and ensure more robust earnings began to pay off. However, UK banking and insurance company Lloyds TSB -------------- 1 Holdings are disclosed as of April 30, 2003 and are subject to change. 2 underperformed due to concerns about the stability of its dividend. Poor results in the Branding and Promotion theme were due mainly to Kraft Foods and Nestle, SA (2.9% of net assets), both of which declined amid fears that food companies might find it difficult to boost sales significantly in the future and that margins could be squeezed further. We eliminated our positions in Cendant, Lloyds TBS, and Kraft Foods during the period. CHANGED EXPOSURE IN LONGER LIFE - BETTER LIFE A new addition to the portfolio was Eli Lilly (2.6% of net assets), which fits within the Longer Life - Better Life theme. Thirty-eight percent of its sales come from age-related therapeutic areas (cardiovascular, oncology, diabetes) and 42% from the treatment of schizophrenia and other severe central nervous system diseases. Eli Lilly does not face any major short- to medium-term patent losses, a major benefit among its large-cap pharmaceutical peers. LOOKING AHEAD The economic uncertainty that has generally characterized the past few years had led to low investment activity and reluctance by consumers and corporations to make long-term spending decisions. We believe pent-up investment and purchasing demand may be released as some of this uncertainty eases short term in the aftermath of the war with Iraq and in the medium to long term as corporate earnings visibility improves. Attractive valuations and falling risk premiums should boost stock markets initially. Downstream, we believe support should come from a pick-up in business investment. We think stock selection remains key in positioning the portfolio to capture this growth. /s/ Leon Pedersen Leon Pedersen The fund is managed by a 28-member portfolio team at Nordea Investment Management North America, Inc., (Nordea), with Leon Pedersen serving as lead manager. No single individual at Nordea is responsible for making investments decisions for the fund. Nordea is a subadvisor to the fund. The fund's advisor is Columbia Management Advisors, Inc. TOP 5 SECTORS as of 4/30/03 (%) [bar chart data]: Financials 18.7 Health care 14.6 Information technology 14.1 Industrials 12.8 Consumer discretionary 12.2 Sector breakdown is calculated as a percentage of net assets. These calculations do not include the fund's other assets and liablilities. Since the fund is actively managed, there can be no guarantee the fund will continue to maintain the same sector breakdowns in the future. There are also specific risks involved when investing in foreign stocks, such as currency exchange rate fluctuations, economic change, instability of emerging countries and political developments. 3 Performance Information-- Liberty European Thematic Equity Fund VALUE OF A $10,000 INVESTMENT 1/2/01 - 4/30/03 PERFORMANCE OF A $10,000 INVESTMENT 1/2/01 - 4/30/03 ($) without with sales sales charge charge -------------------------------------- Class Z 6,263 n/a [mountain chart data]: MSCI Class Z shares Europe Index 1/2001 $10,000 $10,000 10,157 10,005 9,234 9,127 8,429 8,446 8,969 9,046 8,477 8,605 8,133 8,279 8,054 8,300 7,907 8,084 7,150 7,278 7,327 7,509 7,563 7,810 7,838 8,010 7,347 7,591 7,347 7,590 7,651 8,001 7,561 7,940 7,471 7,916 7,281 7,641 6,373 6,790 6,343 6,789 5,364 5,896 5,893 6,466 6,173 6,783 5,934 6,537 5,564 6,228 5,334 6,025 5,544 5,935 4/2003 6,263 6,736 MUTUAL FUND PERFORMANCE CHANGES OVER TIME. PLEASE VISIT WWW.LIBERTYFUNDS.COM FOR MONTHLY PERFORMANCE UPDATES. Past performance is no guarantee of future investment results. The principal value and investment returns will fluctuate, resulting in a gain or loss on sale. The above illustration assumes a $10,000 investment made on January 2, 2001 (December 31, 2000 for the index), and reinvestment of income and capital gains distributions. The Morgan Stanley Capital International Europe (MSCI Europe) Index is an unmanaged group of securities that differs from the composition of any Liberty fund. Unlike the fund, an index is not an investment, does not incur fees or expenses and is not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index. Foreign investing involves market, political, currency and accounting risks not associated with domestic securities. AVERAGE ANNUAL TOTAL RETURN AS OF 4/30/03 (%) Share class Z Inception date 1/2/01 ---------------------------------------------- without sales charge ---------------------------------------------- 6-month (cumulative) 6.27 ---------------------------------------------- 1-year -17.17 ---------------------------------------------- Life -18.20 ---------------------------------------------- AVERAGE ANNUAL TOTAL RETURN AS OF 3/31/03 (%) Share class Z ---------------------------------------------- without sales charge ---------------------------------------------- 6-month (cumulative) 3.35 ---------------------------------------------- 1-year -27.55 ---------------------------------------------- Life -23.09 ---------------------------------------------- Past performance is no guarantee of future investment results. The principal value and investment returns will fluctuate, resulting in a gain or loss on sale. All results shown assume reinvestment of distributions. Performance results reflect any voluntary waivers or reimbursements of fund expenses by the advisor or its affiliates. Absent these waivers or reimbursement arrangements, performance results would have been lower. The graph and table do not reflect the deduction of taxes a shareholder would pay on fund distributions or redemption of fund shares. Class Z shares may be purchased by, among others: any shareholder (and family members) of a fund distributed by Liberty Funds Distributor, Inc. (LFDI) who (i) hold class Z shares, (ii) who holds class A shares that were obtained by exchanging with class Z shares, or (iii) who purchased no-load shares of funds merged with funds distributed by LFDI; clients of fee-based brokers-dealers or registered investment advisors that recommend the purchase of fund shares; any trustee or director (and family members) of any fund distributed by LFDI; insurance companies, trust companies, banks, endowments, investment companies and foundations; and retirement plans with assets of at least $5 million. Investment minimums vary. For further information, please see the fund prospectus. 4 sidebar box: Portfolio Manager's Report-- Liberty European Thematic Equity Fund TOP 10 HOLDINGS as of 4/30/03 (%) Total B 7.7 Nestle SA, Registered Shares 7.5 Vodafone Group 6.9 UBS AG 6.6 Aventis SA 6.5 Novartis AG 6.4 GlaxoSmithKline 6.1 Nokia Oyj 5.2 Shell Transport & Trading 5.2 Telefonica SA 5.1 Holdings are calculated as a percentage of net assets. Because the fund is actively managed, there is no guarantee the fund will continue to hold these securities in the future. TOP 5 COUNTRIES as of 4/30/03 (%) United Kingdom 32.6 Switzerland 14.4 Italy 12.7 France 12.1 Netherlands 6.0 Country breakdown is calculated as a percentage of total investments. Since the fund is actively managed, there is no guarantee the fund will continue to invest in these countries in the future. BOUGHT -------------------------------------------------------------------------------- ALLIED IRISH BANK (2.6% of net assets). The leading banking group in Ireland, the bank fits into the thematic context as it benefits from the strong structural economic growth and the attractive demographics in Ireland. SOLD -------------------------------------------------------------------------------- We sold Cadbury which has increased operational risk, as the company made a new acquisition and is transitioning to a new CEO and rolling out a new restructuring program. The six-month period that ended April 30, 2003 presented a challenging market environment in which the stock markets experienced heightened volatility against a backdrop of looming conflict in Iraq. We are pleased to report that Liberty European Thematic Equity Fund class Z shares returned 6.27% during the period, outperforming the MSCI Europe Index, which returned 4.17%. GOOD RETURNS FROM LONGER LIFE - BETTER LIFE The fund benefited from good stock selection within the Longer Life - Better Life theme. Health products and services companies, such as Fresenius and Novo Nordisk (1.3% and 0.9% of net assets, respectively), did particularly well.1 Fresenius AG, which runs kidney dialysis centers worldwide, was the first European company to reach a settlement on its asbestos exposure, thus allowing management to return to the day-to-day running of its business. Novo Nordisk, based in Denmark, released strong results for 2002, as it maintained a leadership position in the briskly growing insulin market. ADDITIONAL GAINS FROM RETIREMENT AND DATA TRAFFIC The Saving for Retirement theme also helped performance, owing largely to the positive contribution of Italian bank San Paolo IMI (3.7% of net assets). Italian life insurer Alleanza Assicurazioni (3.3% of net assets) also performed well, due to the company's low equity market exposure and speculation about the possible acquisition of minority stakes held by its majority shareholder, Generali. The Global Data Traffic theme delivered robust performance as well. Investors embraced the telecommunications industry for its strong cash flows and high earnings visibility in an otherwise uncertain economic environment. Mobile phone operator Vodafone and Spanish telephone company Telefonica (6.9% and 5.1% of net assets, respectively) did especially well. In particular, Telefonica benefited from its considerable activities in Brazil. -------------- 1 Holdings are disclosed as of April 30, 2003 and are subject to change. 5 POOR RESULTS FROM ENVIRONMENT AND MASTERING HUMAN CAPITAL The Environment theme pulled down performance primarily through its exposure to the Norwegian holding Tomra Systems (0.8% of net assets), which produces systems to recover beverage packaging for recycling. Mounting uncertainty over how new deposit refund regulations would be implemented in Germany, which is expected to be a key market for Tomra, hurt the share price. The German government has since recommended Tomra's model, however, and we expect it to prevail. Within Mastering Human Capital, the share price of Adecco (1.3% of net assets) dropped sharply as demand for temporary employment services, the company's core activity, showed its vulnerability to economic cycles. Demand for temp services in the United States, where Adecco generates a major portion of its sales, dropped sharply. The weak US dollar also eroded the company's earnings. LOOKING AHEAD The economic uncertainty that has generally characterized the past few years has led to low investment activity and reluctance by consumers and corporations to make long-term spending decisions. We believe pent-up investment and purchasing demand may be released as some of this uncertainty eases short term in the aftermath of the war with Iraq and in the medium to long term as corporate earnings visibility improves. Attractive valuations and falling risk premiums should boost stock markets initially. Downstream we expect to see support from a pick-up in business investment. We think stock selection remains key in positioning the portfolio to capture this growth. /s/ Leon Pedersen Leon Pedersen The fund is managed by a 28-member portfolio team at Nordea Investment Management North America, Inc., (Nordea), with Leon Pedersen serving as lead manager. No single individual at Nordea is responsible for making investment decisions for the fund. Nordea is the subadvisor to the fund. The fund's advisor is Columbia Management Advisors, Inc. TOP 5 SECTORS as of 4/30/03 (%) [bar chart data]: Financials 34.6 Energy 21.1 Health care 20.9 Consumer discretionary 20.2 Telecommunications 17.0 Sector breakdown is calculated as a percentage of net assets. Because the fund is actively managed, there can be no guarantee the fund will continue to maintain this breakdown in the future. There are also specific risks involved when investing in foreign stocks, such as currency exchange rate fluctuations, economic change, instability of emerging countries and political developments. A portfolio of stocks from a limited geographic region, such as Europe, may be subject to additional risks and volatility. 6 Investment Portfolio -- Liberty Global Thematic Equity Fund April 30, 2003 (Unaudited) COMMON STOCKS - 97.4% SHARES VALUE ------------------------------------------------------- CONSUMER DISCRETIONARY - 12.2% AUTOMOBILES - 1.4% Honda Motor Co., Ltd. 200 $ 6,634 ----------- HOTELS, RESTAURANTS & LEISURE - 2.4% Carnival Corp. 295 8,139 Darden Restaurants, Inc. 200 3,502 ----------- 11,641 ----------- MEDIA - 4.3% British Sky Broadcasting Group PLC (a) 1,430 14,834 Omnicom Group, Inc. 100 6,190 ----------- 21,024 ----------- MOTORCYCLE MANUFACTURERS - 1.0% Harley-Davidson, Inc. 110 4,888 ----------- MULTI-LINE RETAIL - 1.5% Wal-Mart Stores, Inc. 130 7,322 ----------- SPECIALTY RETAIL - 1.6% Home Depot, Inc. 280 7,876 ----------- ------------------------------------------------------- CONSUMER STAPLES - 5.4% BEVERAGES - 2.5% PepsiCo, Inc. 280 12,118 ----------- FOOD PRODUCTS - 2.9% Nestle SA, Registered Shares 70 14,287 ----------- ------------------------------------------------------- ENERGY - 7.1% OIL & GAS - 7.1% ENI-Ente Nazionale Idvocaburi S.p.A. 1,100 15,706 Exxon Mobil Corp. 540 19,008 ----------- 34,714 ----------- ------------------------------------------------------- FINANCIALS - 18.7% BANKS - 3.8% Allied Irish Banks PLC 440 6,789 UBS AG, Registered Shares 250 11,875 ----------- 18,664 ----------- DIVERSIFIED FINANCIALS - 9.5% Citigroup, Inc. 650 25,513 Merrill Lynch & Co., Inc. 270 11,083 Nomura Holdings, Inc. 1,000 9,918 ----------- 46,514 ----------- INSURANCE - 5.4% Alleanza Assicurazioni S.p.A. 1,000 9,369 American International Group, Inc. 290 16,806 ----------- 26,175 ----------- SHARES VALUE ------------------------------------------------------- HEALTH CARE - 14.6% PHARMACEUTICALS - 14.6% Eli Lilly & Co. 200 $ 12,764 Johnson & Johnson 335 18,881 Novartis AG, Registered Shares 250 9,872 Novo-Nordisk A/S, Class B 150 5,442 Pfizer, Inc. 800 24,600 ----------- 71,559 ----------- ------------------------------------------------------- INDUSTRIALS - 12.8% AEROSPACE & DEFENSE - 3.7% Bombardier, Inc., Class B 1,500 3,630 Honeywell International, Inc. 450 10,620 Ryanair Holdings PLC ADR (a) 100 3,967 ----------- 18,217 ----------- COMMERCIAL SERVICES & SUPPLIES - 2.4% Manpower, Inc. 200 6,576 Securitas AB 440 5,168 ----------- 11,744 ----------- INDUSTRIAL CONGLOMERATES - 5.0% General Electric Co. 550 16,198 Siemens AG 170 8,492 ----------- 24,690 ----------- MACHINERY - 0.5% Tomra Systems ASA 500 2,367 ----------- TRADING COMPANIES & DISTRIBUTORS - 1.2% Mitsubishi Corp. 1,000 5,954 ----------- ------------------------------------------------------- INFORMATION TECHNOLOGY - 14.1% COMMUNICATIONS EQUIPMENT - 3.0% Cisco Systems, Inc. (a) 410 6,165 Nokia Oyj 300 5,085 Qualcomm, Inc. 100 3,189 ----------- 14,439 ----------- ELECTRONIC EQUIPMENT & INSTRUMENTS - 1.2% Hoya Corp. 100 5,920 ----------- INFORMATION TECHNOLOGY CONSULTING & SERVICES - 1.1% Accenture, Ltd., Class A (a) 350 5,607 ----------- SEMICONDUCTOR EQUIPMENT & PRODUCTS - 4.6% Applied Materials, Inc. (a) 600 8,760 Samsung Electronics Co., Ltd. GDR 60 7,500 Taiwan Semiconductor Manufacturing Co., Ltd. ADR (a) 740 6,194 ----------- 22,454 ----------- SOFTWARE - 4.2% Microsoft Corp. 500 12,785 Veritas Software Corp. (a) 350 7,704 ----------- 20,489 ----------- See notes to investment portfolio. 7 Investment Portfolio -- Liberty Global Thematic Equity Fund (continued) April 30, 2003 (Unaudited) COMMON STOCKS - CONTINUED SHARES VALUE ------------------------------------------------------- MATERIALS - 4.2% CHEMICALS - 1.4% Potash Corp. of Saskatchewan, Inc. 110 $ 6,765 ----------- METALS & MINING - 1.9% BHP Billiton, Ltd. 1,600 9,058 ----------- PAPER & FOREST PRODUCTS - 0.9% Upm-Kymmene Oyj 300 4,394 ----------- ------------------------------------------------------- TELECOMMUNICATION SERVICES - 5.3% DIVERSIFIED TELECOMMUNICATION - 0.0% Telefonica SA 21 233 ----------- WIRELESS TELECOMMUNICATION SERVICES - 5.3% AT&T Wireless Services, Inc. (a) 1,489 9,619 NTT DoCoMo, Inc. 3 6,197 Vodafone Group PLC 5,000 9,877 ----------- 25,693 ----------- ------------------------------------------------------- UTILITIES - 3.0% ELECTRIC UTILITIES - 1.5% Cinergy Corp. 220 7,511 ----------- GAS UTILITIES - 1.5% Centrica PLC 2,770 7,366 ----------- TOTAL COMMON STOCKS - 97.4% (cost of $532,697) (b) 476,317 ----------- OTHER ASSETS & LIABILITIES, NET - 2.6% $ 12,724 ------------------------------------------------------- NET ASSETS - 100.0% $ 489,041 =========== NOTES TO INVESTMENT PORTFOLIO: (a) Non-income producing. (b) Cost for both financial statement and federal income tax purposes is the same. SUMMARY OF SECURITIES % OF TOTAL BY COUNTRY VALUE INVESTMENTS ------------------------------------------------------- United States $ 291,085 61.1% United Kingdom 38,866 8.1 Switzerland 36,034 7.6 Japan 34,624 7.3 Italy 25,076 5.3 Canada 10,395 2.2 Finland 9,478 2.0 Australia 9,058 1.9 Germany 8,491 1.8 Denmark 5,442 1.1 Sweeden 5,168 1.1 Norway 2,367 0.5 Spain 233 0.0 ---------- ---------- $ 476,317 100.0% ---------- ---------- ACRONYM NAME ------------------------------------------ ADR American Depositary Receipt GDR Global Depositary Receipt See notes to financial statements. 8 Investment Portfolio -- Liberty European Thematic Equity Fund April 30, 2003 (Unaudited) COMMON STOCKS - 152.9% SHARES VALUE ------------------------------------------------------- CONSUMER DISCRETIONARY - 20.2% AUTOMOBILES - 1.1% Bayerische Motoren Werke (BMW) AG 75 $ 2,505 ----------- HOTELS, RESTAURANTS & LEISURE - 4.3% Carnival Corp. 28 779 Carnival PLC 62 1,546 Compass Group PLC 1,630 7,509 ----------- 9,834 ----------- HOUSEHOLD DURABLES - 3.3% Koninklijke (Royal) Philips Electronics N.V. 410 7,642 ----------- MEDIA - 9.8% British Sky Broadcasting Group PLC (a) 1,000 10,373 Societe Television Francaise 220 6,191 WPP Group PLC 820 5,840 ----------- 22,404 ----------- SPECIALTY RETAIL - 1.7% Kingfisher PLC 1,000 3,911 ----------- ------------------------------------------------------- CONSUMER STAPLES - 12.0% BEVERAGES - 4.2% Diageo PLC 870 9,658 ----------- FOOD PRODUCTS - 7.8% Nestle SA, Registered Shares 84 17,144 Koninklijke Numico N.V. 84 785 ----------- 17,929 ----------- ------------------------------------------------------- ENERGY - 21.1% ENERGY EQUIPMENT & SERVICES - 1.4% Saipem S.p.A. 450 3,145 ----------- OIL & GAS - 19.7% BP PLC 700 4,440 ENI-Ente Nazionale Idrocarburi S.p.A. 640 9,138 Royal Dutch Petroleum Co. 50 2,049 Shell Transport & Trading Co., PLC 1,980 11,869 Total B 135 17,736 ----------- 45,232 ----------- SHARES VALUE ------------------------------------------------------- FINANCIALS - 34.6% BANKS- 21.6% Allied Irish Banks PLC 390 $ 6,018 Bankinter SA 22 673 Deutsche Bank AG 30 1,554 ForeningsSparbanken AB 720 9,778 Lloyds TSB Group PLC 1,720 11,321 UBS AG 320 15,200 UniCredito Italiano S.p.A. 1,140 4,997 ----------- 49,541 ----------- DIVERSIFIED FINANCIALS - 7.4% Fortis 510 8,576 San Paola - IMI S.p.A. 1,030 8,511 ----------- 17,087 ----------- INSURANCE - 5.6% Alleanza Assicurazioni 810 7,589 AMB Generali Holding AG 70 4,031 Swiss Reinsurance 18 1,177 ----------- 12,797 ----------- ------------------------------------------------------- HEALTH CARE - 20.9% HEALTH CARE EQUIPMENT & SUPPLIES - 0.4% Essilor International SA 21 861 ----------- PHARMACEUTICALS - 20.5% Aventis SA 295 15,011 GlaxoSmithKline PLC 700 14,041 Novartis AG 370 14,612 Novo Nordisk A/S, Class B 60 2,177 Shire Pharmaceuticals Group PLC (a) 200 1,286 ----------- 47,127 ----------- ------------------------------------------------------- INDUSTRIALS - 12.1% AEROSPACE & DEFENSE - 1.3% Ryanair Holdings PLC ADR (a) 75 2,975 ----------- AIR FREIGHT & COURIERS - 3.8% Exel PLC 250 2,399 TPG N.V. 405 6,331 ----------- 8,730 ----------- COMMERCIAL SERVICES & SUPPLIES - 3.0% Adecco SA 75 2,879 Chubb PLC 1,580 1,687 Securitas AB 200 2,349 ----------- 6,915 ----------- INDUSTRIAL CONGLOMERATES - 1.3% Siemens AG 60 2,997 ----------- See notes to investment portfolio. 9 Investment Portfolio -- Liberty European Thematic Equity Fund (continued) April 30, 2003 (Unaudited) COMMON STOCKS (CONTINUED) SHARES VALUE ------------------------------------------------------- INDUSTRIALS (CONTINUED) MACHINERY - 2.7% Sandvik AB 170 $ 4,326 Tomra Systems ASA 400 1,893 ----------- 6,219 ----------- ------------------------------------------------------- INFORMATION TECHNOLOGY - 7.4% COMMUNICATIONS EQUIPMENT - 5.3% Nokia Oyj 710 12,035 ----------- SEMICONDUCTOR EQUIPMENT & PRODUCTS - 0.6% ASML Holding N.V. (a) 150 1,298 ----------- SOFTWARE - 1.5% Dassault Systemes SA 50 1,447 SAP AG 20 2,053 ----------- 3,500 ----------- ------------------------------------------------------- MATERIALS - 4.3% CHEMICALS - 1.4% DSM N.V. 75 3,287 ----------- METALS & MINING - 0.7% Pechiney SA 55 1,590 ----------- PAPER & FOREST PRODUCTS - 2.2% UPM-Kymmene Oyj 350 5,126 ----------- ------------------------------------------------------- TELECOMMUNICATION SERVICES - 17.0% DIVERSIFIED TELECOMMUNICATION - 10.1% Telecom Italia S.p.A. 1,400 11,458 Telefonica SA (a) 1,050 11,634 ----------- 23,092 ----------- WIRELESS TELECOMMUNICATION SERVICES - 6.9% Vodafone Group PLC 7,990 15,784 ----------- ------------------------------------------------------- UTILITIES - 3.3% ELECTRIC UTILITIES - 3.3% National Grid Group PLC 1,155 7,593 ----------- TOTAL COMMON STOCKS (cost of $341,391) 350,814 ----------- PREFERRED STOCK - 1.3% ------------------------------------------------------- HEALTH CARE - 1.3% HEALTH CARE PROVIDERS & SERVICES - 1.3% Fresenius AG (cost of $1,546) 65 2,903 ----------- VALUE ------------------------------------------------------- TOTAL INVESTMENTS - 154.2% (cost of $342,937) (b) $ 353,717 ----------- OTHER ASSETS & LIABILITIES, NET - (54.2)% (124,289) ------------------------------------------------------- NET ASSETS - 100.0% $ 229,428 =========== NOTES TO INVESTMENT PORTFOLIO: (a) Non-income producing. (b) Cost for both financial statement and federal income tax purposes is the same. SUMMARY OF SECURITIES % OF TOTAL BY COUNTRY VALUE INVESTMENTS ------------------------------------------------------- United Kingdom $ 115,274 32.6% Switzerland 51,011 14.4 Italy 44,838 12.7 France 42,837 12.1 Netherlands 21,392 6.0 Finland 17,161 4.9 Sweeden 16,453 4.7 Germany 16,043 4.5 Spain 12,308 3.5 Belgium 8,576 2.4 United States 3,754 1.1 Denmark 2,177 0.6 Norway 1,893 0.5 ---------- ---------- $ 353,717 100.0% ---------- ---------- ACRONYM NAME ------------------------------------------ ADR American Depository Receipt See notes to financial statements. 10 Statements of Assets and Liabilities
April 30, 2003 (Unaudited) LIBERTY LIBERTY GLOBAL THEMATIC EUROPEAN THEMATIC EQUITY FUND EQUITY FUND -------------------------------------------------------------------------------------------------------------------- ASSETS: Investments, at cost $ 532,697 $ 342,937 --------- --------- Investments, at value $ 476,317 $ 353,717 Cash 946 2,128 Foreign currency (cost of $17,320 and $4,441, respectively) 18,005 4,488 Receivable for: Dividends 2,460 4,100 Expense reimbursement due from Advisor 10,304 11,783 Deferred Trustees' compensation plan 180 180 Other assets -- 9,027 --------- --------- Total Assets 508,212 385,423 --------- --------- LIABILITIES: Payable for: Investments purchased -- 138,494 Management fee 360 1,464 Administration fee 63 260 Transfer agent fee 453 223 Pricing and bookkeeping fees -- 110 Audit fee 6,276 6,276 Registration fee 5,041 5,040 Reports to shareholders 6,664 1,375 Deferred Trustees' fee 180 180 Other liabilities 134 2,573 --------- --------- Total Liabilities 19,171 155,995 --------- --------- NET ASSETS $ 489,041 $ 229,428 ========= ========= COMPOSITION OF NET ASSETS: Paid-in capital $1,223,028 $ 949,902 Accumulated net investment loss (839) (161) Accumulated net realized loss (677,580) (731,438) Net unrealized appreciation (depreciation) on: Investments (56,380) 10,780 Foreign currency translations 812 345 --------- --------- NET ASSETS $ 489,041 $ 229,428 ========= ========= CLASS Z: Net assets $ 489,041 $ 229,428 Shares outstanding 78,361 36,617 --------- --------- Net asset value, offering and redemption price per share $ 6.24 $ 6.27 ========= ========= See notes to financial statements.
11 Statements of Operations
For the Six Months Ended April 30, 2003 (Unaudited) LIBERTY LIBERTY GLOBAL THEMATIC EUROPEAN THEMATIC EQUITY FUND EQUITY FUND -------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $ 8,059 $ 6,455 Interest -- 32 --------- --------- Total Investment Income (net of foreign taxes withheld of $597 and $990, respectively) 8,059 6,487 --------- --------- EXPENSES: Management fee 4,458 3,261 Administration fee 787 575 Pricing and bookkeeping fees 5,346 5,575 Transfer agent fee 1,157 603 Trustees' fee 2,293 2,415 Custody fee 3,555 6,709 Audit fee 6,645 6,645 Registration fee 9,373 9,523 Reports to shareholders 4,863 1,468 Other expenses 1,805 1,948 --------- --------- Total Expenses 40,282 38,722 Fees and expenses waived or reimbursed by Advisor/Administrator (31,924) (32,612) --------- --------- Net Expenses 8,358 6,110 --------- --------- Net Investment Income (Loss) (299) 377 --------- --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY: Net realized gain (loss) on: Investments (366,167) (149,374) Foreign currency transactions 4,603 1,649 --------- --------- Net realized loss (361,564) (147,725) --------- --------- Net change in unrealized appreciation/depreciation on: Investments 308,101 101,197 Foreign currency translations 642 30 --------- --------- Net change in unrealized appreciation/depreciation 308,743 101,227 --------- --------- Net Loss (52,821) (46,498) --------- --------- Net Decrease in Net Assets from Operations $ (53,120) $ (46,121) ========= ========= See notes to financial statements.
12
Statements of Changes in Net Assets LIBERTY LIBERTY GLOBAL THEMATIC EUROPEAN THEMATIC EQUITY FUND EQUITY FUND ---------------------------- -------------------------- (UNAUDITED) (UNAUDITED) SIX MONTHS SIX MONTHS ENDED YEAR ENDED ENDED YEAR ENDED APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31, INCREASE (DECREASE) IN NET ASSETS: 2003(b) 2002(a) 2003(b) 2002(a) --------------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) $ (299) $ (3,888) $ 377 $ 857 Net realized loss on investments and foreign currency transactions (361,564) (235,843) (147,725) (451,975) Net change in unrealized appreciation/depreciation on investments and foreign currency translations 308,743 (51,477) 101,227 198,885 ---------- ---------- ---------- ---------- Net Decrease from Operations (53,120) (291,208) (46,121) (252,233) ---------- ---------- ---------- ---------- DISTRIBUTIONS DECLARED TO SHAREHOLDERS: From net investment income -- (839) -- (20,508) ---------- ---------- ---------- ---------- SHARE TRANSACTIONS: Subscriptions 8,212 499,082 170,092 990,208 Distributions reinvested -- 839 -- 20,508 Redemptions (714,602) (553,111) (828,245) (979,194) ---------- ---------- ---------- ---------- Net Increase (Decrease) from Share Transactions (706,390) (53,190) (658,153) 31,522 ---------- ---------- ---------- ---------- Total Decrease in Net Assets (759,510) (345,237) (704,274) (241,219) NET ASSETS: Beginning of period 1,248,551 1,593,788 933,702 1,174,921 ---------- ---------- ---------- ---------- End of period $ 489,041 $1,248,551 $ 229,428 $ 933,702 ========== ========== ========== ========== Overdistributed net investment income $ (839) $ (540) $ (161) $ (538) ========== ========== ========== ========== CHANGES IN SHARES: Class Z: Subscriptions 1,320 67,200 27,865 155,828 Issued for distributions reinvested -- 104 -- 2,658 Redemptions (119,051) (76,155) (149,415) (157,802) ---------- ---------- ---------- ---------- Net Increase (Decrease) (117,731) (8,851) (121,550) 684 ========== ========== ========== ========== (a) On July 29, 2002, the Funds' outstanding shares were redesignated as Class Z shares. (b) Approximately $670,000 and $655,000 of redemptions in Liberty Global Thematic Equity Fund and Liberty European Thematic Equity Fund, respectively, were by an affiliate of the Funds' investment advisor and were due to certain regulatory requirements.
See notes to financial statements. 13 Notes to Financial Statements April 30, 2003 (Unaudited) NOTE 1. ACCOUNTING POLICIES ORGANIZATION: Liberty Global Thematic Equity Fund, ("Global Thematic Equity Fund") and Liberty European Thematic Equity Fund, ("European Thematic Equity Fund") (collectively, the "Funds") are separate series of Liberty-Stein Roe Funds Investment Trust (the "Trust"), an open-end management investment company, which is registered under the Investment Company Act of 1940, and is organized as a Massachusetts business trust. The Funds may issue an unlimited number of shares. Each Fund's investment goal is to seek long-term growth of capital. On July 29, 2002, the outstanding shares of the Funds were redesignated Class Z shares. Class Z shares are offered continuously at net asset value. There are certain restrictions on the purchase of Class Z shares, as described in each Fund's prospectus. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses for the reporting period. Actual results could differ from those estimates. The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of financial statements. SECURITY VALUATION AND TRANSACTIONS: Equity securities generally are valued at the last sale price or, in the case of unlisted or listed securities for which there were no sales during the day, at the current quoted bid price. Forward currency contracts are valued based on the weighted value of the exchange-traded contracts with similar durations. Short-term obligations with a maturity of 60 days or less are valued at amortized cost. The values of all assets and liabilities quoted in foreign currencies are translated into U.S. dollars at that day's exchange rates. Generally, trading in foreign securities is substantially completed each day at various times prior to the close of the New York Stock Exchange ("NYSE"). The values of such securities used in computing the net asset value of the Fund's shares are determined as of such times. Foreign currency exchange rates are also generally determined prior to the close of the NYSE. Occasionally, events affecting the values of such securities and such exchange rates may occur between the times at which they are determined and the close of the customary trading session of the NYSE, which would not be reflected in the computation of the Fund's net asset value. If events materially affecting the value of such securities occur during such period, then these securities will be valued at their fair value as determined in good faith by or under the supervision of the Board of Trustees. Investments for which market quotations are not readily available, or quotations which management believes are not appropriate, are valued at fair value under procedures approved by the Board of Trustees. Security transactions are accounted for on the date the securities are purchased, sold or mature. Cost is determined and gains (losses) are based upon the specific identification method for both financial statement and federal income tax purposes. FEDERAL INCOME TAXES: Consistent with the Funds' policy to qualify as a regulated investment company and to distribute all of their taxable income, no federal income tax has been accrued. DISTRIBUTIONS TO SHAREHOLDERS: Distributions to shareholders are recorded on the ex-date. FOREIGN CURRENCY TRANSACTIONS: Net realized and unrealized gains (losses) on foreign currency transactions includes gains (losses) arising from the fluctuations in exchange rates between trade and settlement dates on securities transactions, gains (losses) arising from the disposition of foreign currency and currency gains (losses) between the accrual and payment dates on dividends and interest income and foreign withholding taxes. The Funds do not distinguish that portion of gains (losses) on investments which is due to changes in foreign exchange rates from that which is due to changes in market prices of the investments. Such fluctuations are included with the net realized and unrealized gains (losses) on investments. 14 Notes to Financial Statements (continued) April 30, 2003 (Unaudited) FORWARD CURRENCY CONTRACTS: The Funds may enter into forward currency exchange contracts to purchase or sell foreign currencies at predetermined exchange rates in connection with the settlement of purchases and sales of securities. The Funds may also enter into forward currency contracts to hedge certain other foreign currency denominated assets. The contracts are used to minimize the exposure to foreign exchange rate fluctuations during the period between trade and settlement date of the contracts. All contracts are marked-to-market daily, resulting in unrealized gains (losses) which become realized at the time the forward currency contracts is closed or mature. Realized and unrealized gains (losses) arising from such transactions are included in net realized and unrealized gains (losses) on foreign currency transactions. Forward currency contracts do not eliminate fluctuations in the prices of the Funds' securities. While the maximum potential loss from such contracts is the aggregate face value in U.S. dollars at the time the contract was opened, the actual exposure is typically limited to the change in value of the contract (in U.S. dollars) over the period it remains open. Risks may also arise if counterparties fail to perform their obligations under the contracts. OTHER: Interest income is recorded on the accrual basis. Corporate actions and dividend income are recorded on the ex-dividend date (except for certain foreign securities which are recorded as soon after ex-date as the Funds become aware of such), net of non-reclaimable tax withholdings. Where a high level of uncertainty as to collection exists, income on securities is recorded net of all tax withholdings with any rebates recorded when received. NOTE 2. FEDERAL TAX INFORMATION Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. Reclassifications are made to the Funds' capital accounts to reflect income and gains available for distribution (or available capital loss carryforwards) under income tax regulations. The following capital loss carryforwards, determined as of October 31, 2002, are available to reduce taxable income arising from future net realized gains on investments, if any, to the extent permitted by the Internal Revenue Code: GLOBAL EUROPEAN THEMATIC THEMATIC YEAR OF EXPIRATION EQUITY FUND EQUITY FUND ----------------- ----------- ----------- 2009 $ 79,387 $ 92,707 2010 235,325 205,264 -------- -------- $314,712 $297,971 -------- -------- Expired capital loss carryforwards, if any, are recorded as a reduction of paid-in capital. NOTE 3. FEES AND COMPENSATION PAID TO AFFILIATES MANAGEMENT FEE: Columbia Management Advisors, Inc. ("Columbia"), an indirect, wholly-owned subsidiary of FleetBoston Financial Corporation, is the investment advisor of the Fund and receives a monthly fee equal to 0.85% annually of each Fund's average daily net assets. On April 1, 2003, Stein Roe & Farnham Incorporated ("Stein Roe"), the previous advisor to the Funds' merged into Columbia. At the time of the merger, Columbia assumed the obligation of Stein Roe with respect to the Funds. The merger did not change the way the Funds are managed, the investment personnel assigned to manage the Funds or the fees paid by the Funds to Columbia. Nordea Investment Management North America, Inc. ("Nordea") has been retained by Columbia as sub-advisor to manage the day-to-day investment operations of the Funds. Columbia, out of the advisory fee it receives, pays Nordea a monthly sub-advisory fee equal to 0.60% annually of the average daily net assets of each Fund. ADMINISTRATION FEE: Columbia also provides accounting and other services for a monthly fee equal to 0.15% annually of each Fund's average daily net assets. PRICING AND BOOKKEEPING FEE: Columbia is also responsible for providing pricing and bookkeeping services to the Funds under a Pricing and Bookkeeping Agreement. Under a separate agreement (the "Outsourcing Agreement"), Columbia has delegated those functions to State 15 Notes to Financial Statements (continued) April 30, 2003 (Unaudited) Street Bank and Trust Company ("State Street"). Columbia pays fees to State Street under the Outsourcing Agreement. Under its pricing and bookkeeping agreement with each Fund, Columbia receives from each Fund an annual flat fee of $10,000, paid monthly, and in any month that a Fund's average daily net assets are more than $50 million, a monthly fee equal to the average daily net assets of the Fund for that month multiplied by a fee rate that is calculated by taking into account the fees payable to State Street under the Outsourcing Agreement. The Fund also pays out-of-pocket costs for pricing services. TRANSFER AGENT FEE: Liberty Funds Services, Inc. (the "Transfer Agent"), an affiliate of Columbia, provides shareholder services for a monthly fee equal to 0.06% annually of each Fund's average daily net assets plus charges based on the number of shareholder accounts and transactions. The Transfer Agent also receives reimbursement for certain out-of-pocket expenses. EXPENSE LIMITS: Columbia has voluntarily agreed, until further notice, to waive fees and bear certain Fund expenses to the extent that total expenses (exclusive of brokerage commissions, interest, taxes and extraordinary expenses, if any) exceed 1.60% annually of each Fund's average daily net assets. OTHER: Each Fund pays no compensation to their officers, all of whom are employees of Columbia or its affiliates. The Funds' Independent Trustees may participate in a deferred compensation plan which may be terminated at any time. Obligations of the plan will be paid solely out of the Funds' assets. The Fund has an agreement with its custodian bank under which custody fees may be reduced by balance credits. If applicable, the Fund could invest a portion of the assets utilized in connection with the expense offset arrangement in an income-producing asset if it had not entered into such an agreement. For the six months ended April 30, 2003, there were no such credits. NOTE 4. PORTFOLIO INFORMATION INVESTMENT ACTIVITY: For the six months ended April 30, 2003, purchases and sales of investments, other than short-term obligations, were as follows: PURCHASES SALES --------- --------- Global Thematic Equity Fund $231,321 $948,147 European Thematic Equity Fund $307,309 $821,401 Unrealized appreciation (depreciation) at April 30, 2003, based on cost of investments for both financial statement and federal income tax purposes, was: NET GROSS GROSS UNREALIZED UNREALIZED UNREALIZED APPRECIATION/ APPRECIATION DEPRECIATION DEPRECIATION ---------- ---------- ---------- Global Thematic Equity Fund $16,224 $(72,604) $(56,380) European Thematic Equity Fund $19,738 $ (8,958) $ 10,780 OTHER: There are certain additional risks involved when investing in foreign securities that are not inherent with investments in domestic securities. These risks may involve foreign currency exchange rate fluctuations, adverse political and economic developments and the possible prevention of foreign currency exchange or the imposition of other foreign governmental laws or restrictions. NOTE 5. RELATED PARTY SHAREHOLDER As of April 30, 2003, approximately 49% and 86% of the outstanding shares in Liberty Global Thematic Equity Fund and Liberty European Thematic Equity Fund, respectively, were held by an affiliate of Columbia. Due to these ownership levels, the affiliate may be deemed to have control of each Fund. 16 Financial Highlights -- Liberty Global Thematic Equity Fund Selected data for a share outstanding throughout each period is as follows:
(UNAUDITED) SIX MONTHS YEAR PERIOD ENDED ENDED ENDED APRIL 30, OCTOBER 31, OCTOBER 31, CLASS Z SHARES 2003 2002(a) 2001(b) ------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 6.37 $ 7.78 $ 10.13 ------- ------- ------- INCOME FROM INVESTMENT OPERATIONS: Net investment loss (c) --(d) (0.02) (0.03) Net realized and unrealized loss on investments and foreign currency (0.13) (1.39) (2.32) ------- ------- ------- Total from Investment Operations (0.13) (1.41) (2.35) ------- ------- ------- LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS: From net investment income -- --(d) -- ------- ------- ------- NET ASSET VALUE, END OF PERIOD $ 6.24 $ 6.37 $ 7.78 ======= ======= ======= Total return (e)(f) (2.04)%(g) (18.08)% (23.20)%(g) ======= ======= ======= RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA: Expenses (h) 1.60%(i) 1.60% 1.60%(i) Net investment loss (h) (0.06)%(i) (0.25)% (0.40)%(i) Waiver/reimbursement 6.11%(i) 5.07% 5.54%(i) Portfolio turnover rate 23%(g) 41% 15%(g) Net assets, end of period (000's) $ 489 $ 1,249 $ 1,594
(a) On July 29, 2002, the Stein Roe Global Thematic Equity Fund was redesignated Liberty Global Thematic Equity Fund, Class Z shares. (b) The Fund commenced operations on January 2, 2001. (c) Per share data was calculated using average shares outstanding during the period. (d) Rounds to less than $0.01 per share. (e) Had the Advisor not waived or reimbursed a portion of expenses, total return would have been reduced. (f) Total return at net asset value assuming all distributions reinvested. (g) Not annualized. (h) The benefits derived from custody credits and directed brokeraged arrangements, if applicable, had an impact of less than 0.01%. (i) Annualized. 17 Financial Highlights -- Liberty European Thematic Equity Fund
Selected data for a share outstanding throughout each period is as follows: (UNAUDITED) SIX MONTHS YEAR PERIOD ENDED ENDED ENDED APRIL 30, OCTOBER 31, OCTOBER 31, CLASS Z SHARES 2003 2002(a) 2001(b) ------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 5.90 $ 7.46 $ 10.18 ------- ------- ------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (c) --(d) 0.01 0.05 Net realized and unrealized gain (loss) on investments and foreign currency 0.37 (1.44) (2.77) ------- ------- ------- Total from Investment Operations 0.37 (1.43) (2.72) ------- ------- ------- LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS: From net investment income -- (0.13) -- ------- ------- ------- NET ASSET VALUE, END OF PERIOD $ 6.27 $ 5.90 $ 7.46 ======= ======= ======= Total return (e)(f) 6.27%(g) (19.58)% (26.72)%(g) ======= ======= ======= RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA: Expenses (h) 1.60%(i) 1.60% 1.60%(i) Net investment income (h) 0.10%(i) 0.07% 0.71%(i) Waiver/reimbursement 8.52%(i) 6.08% 5.57%(i) Portfolio turnover rate 40%(g) 71% 33%(g) Net assets, end of period (000's) $ 229 $ 934 $ 1,175
(a) On July 29, 2002, the Stein Roe European Thematic Equity Fund was redesignated Liberty European Thematic Equity Fund, Class Z shares. (b) The Fund commenced operations on January 2, 2001. (c) Per share data was calculated using average shares outstanding during the period. (d) Rounds to less than $0.01 per share. (e) Had the Advisor not waived or reimbursed a portion of expenses, total return would have been reduced. (f) Total return at net asset value assuming all distributions reinvested. (g) Not annualized. (h) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (i) Annualized. 18 [THIS PAGE INTENTIONALLY LEFT BLANK] [THIS PAGE INTENTIONALLY LEFT BLANK] Transfer Agent IMPORTANT INFORMATION ABOUT THIS REPORT The Transfer Agent for Liberty Thematic Equity Funds is: Liberty Funds Services, Inc. P.O. Box 8081 Boston, MA 02266-8081 The fund mails one shareholder report to each shareholder address. If you would like more than one report, please call Shareholder Services at 800-345-6611 and additional reports will be sent to you. This report has been prepared for shareholders of Liberty Thematic Equity Funds. This report may also be used as sales literature when preceded or accompanied by the current prospectus which provides details of sales charges, investment objectives and operating policies of the fund and with the most recent copy of the Liberty Funds Performance Update. Semiannual Report: Liberty Thematic Equity Funds Liberty Thematic Equity Funds SEMIANNUAL REPORT, APRIL 30, 2003 PRSRT STD U.S. POSTAGE PAID HOLLISTON, MA PERMIT NO. 20 [eagle head logo] LibertyFunds A Member of Columbia Managment Group (C)2003 Liberty Funds Distributor, Inc. A Member of Columbia Management Group One Financial Center, Boston, MA 02111-2621 LTF-03/980N-0503 (06./03) 03/1599 LIBERTY EQUITY FUNDS SEMIANNUAL REPORT APRIL 30, 2003 [photo of: Woman holding a pen and gazing out.] Eliminate clutter in two easy steps. Point. Click. Liberty eDelivery. For more information about receiving your shareholder reports electronically, call us at 800-345-6611. To sign up for eDelivery, visit us online at www.libertyfunds.com. To sign up for eDelivery, go to www.icsdelivery.com PRESIDENT'S MESSAGE [Photo of: Joseph R. Palombo] Dear Shareholder: After three years of declining equity values, the stock market rallied over the past six months. All major stock market indices registered gains for the period, buoyed by a surge in trading activity in the final weeks of March. An apparent victory in Iraq and the tentative signs of economic stability encouraged investors to take on more risk. Attractive valuations and forecasts of improved corporate earnings also fed investors' appetites for stocks. In spite of this positive activity, we encourage investors to temper their expectations for the stock market in the near term. The economy has yet to stage a convincing recovery and the employment outlook remains uncertain. These factors, plus ongoing geopolitical tensions, repeated acts of terrorism abroad and threats at home could again translate into a choppy market. That said, we believe in the long-term benefits of stock investing, especially as part of a comprehensive investment strategy and a balanced portfolio. For a more detailed analysis of the events of the period and factors that affected fund performance, see the portfolio manager reports that follow this letter. CONSOLIDATION--AND A NEW NAME I am pleased to announce that, effective April 1, 2003, six of the asset management firms brought together when Columbia Management Group, Inc. was formed were consolidated and renamed Columbia Management Advisors, Inc. (Columbia Management) This consolidation does not affect the management or investment objectives of your fund and is the next step in our efforts to create a consistent identity and to streamline our organization. By consolidating these firms, we are able to create a more efficient organizational structure and strengthen certain key functions, such as research. Although the name of the asset manager familiar to you has changed, what hasn't changed is the commitment of our specialized investment teams to a multi-disciplined approach to investing, focused on our goal of offering shareholders the best products and services. In the report that follows, portfolio managers discuss the events of the period in more detail and the strategies that have been employed to manage each fund. As always, thank you for choosing Liberty funds to help you reach your long-term financial goals. Sincerely, /s/ Joseph R. Palombo Joseph R. Palombo President MEET THE NEW PRESIDENT Joseph R. Palombo, president and chairman of the Board of Trustees for Liberty Funds, is also chief operating officer and executive vice president of Columbia Management. Mr. Palombo has over 19 years of experience in the financial services industry. Prior to joining a predecessor of Columbia Management, he was chief operating officer and chief compliance officer for Putnam Mutual Funds. Prior to that, he was a partner at Coopers & Lybrand. Mr. Palombo received his degree in economics/accounting from the College of the Holy Cross, where he was a member of Phi Beta Kappa. He earned his master's degree in taxation from Bentley College and participated in the Executive Program at the Amos B. Tuck School at Dartmouth College. Not FDIC Insured May Lose Value No Bank Guarantee Economic and market conditions change frequently. There is no assurance that the trends described in this report will continue or commence. MARKET OVERVIEW After losing ground for most of this reporting period, US stock prices rose sharply in the final two months and ended the period moderately higher than where they began. In addition to ongoing domestic concerns, including further delay in a sustained economic recovery, worries over the war with Iraq hurt US equities. With somewhat diminished economic prospects, foreign stocks generally lost ground in terms of local currencies. However, a weaker US dollar put foreign stock prices slightly ahead of where they started, when translated into US dollars. For the six-month reporting period that ended April 30, 2003, the Standard & Poor's (S&P) 500 Index, which represents stocks of large established domestic companies, returned 4.47%. Over the same time, stocks of smaller firms represented by the Russell 2000 Index returned 7.55%, and foreign stocks in the MSCI EAFE Index returned 1.81% in US dollars. US ECONOMIC RECOVERY SLOWS TO A CRAWL US economic growth remained positive, but slowed significantly during this period. Gross domestic product, a measure of goods and services, rose at an annualized rate of about 1.5%. This was much lower than the 4.0% growth rate achieved in the third quarter of 2002. Although interest rates reached their lowest levels in 40 years, other traditional sources of economic growth were little help in fueling an expansion. Consumer spending slowed as people became increasingly anxious about a deteriorating job market and limited wage gains. The pace of home refinancings, which had been a strong driver of consumer spending, also began to moderate. Business spending was a further disappointment, as many industries remained plagued by overcapac-ity, weak pricing power and anemic profits. Business investment declined in the first quarter of 2003, following modest gains in previous quarters. Preparations for war with Iraq and surging oil prices weighed heavily on the economy. An increase in defense spending, which might have helped economic growth, was offset by reduced spending from budget-strapped state and local governments. Foreign trading partners offered little support as they struggled with their own weak economies. INVESTORS SEEK QUALITY AND LIQUIDITY After advancing early in the reporting period, US stock prices headed lower through early March of 2003. Stock prices then rebounded after it appeared that a war with Iraq would be shorter than investors expected. Foreign stocks, represented by the MSCI EAFE Index, also moved higher - beginning their rally in February of 2003. Leadership within the market shifted, according to prevailing economic and geopolitical conditions. When the market rallied early in the period, stocks of smaller companies outpaced stocks with larger market capitalizations. The situation, though, was reversed when the markets weakened. During this period, investors tended to favor issues with higher credit quality and greater "liquidity," which made them easier to trade. With renewed economic optimism at the end of the period, small-cap stocks led the market's advance once again. Investors also turned to growth stocks as economic expectations improved after favoring value-oriented stocks early in the period. OUR FOCUS DURING THE PERIOD Throughout the period, our managers continued to emphasize broad diversification among industry groups in their portfolios. We focused increasingly on the prospects of individual companies--emphasizing stocks with high credit quality and attractive prices. In some portfolios the managers focused more on stocks from industries with greater economic sensitivity. While the stocks from these industries were weak performers this period as the economic outlook wavered, we believe many of these holdings will perform well when the recovery takes hold. BUILDING SUPPORT FOR AN ECONOMIC RECOVERY We expect economic growth to accelerate modestly for the second quarter of 2003. We also expect growth to increase steadily through the rest of the year as the traditional sources of stimulus build support for a sustained recovery. With an end to the war with Iraq, oil prices have fallen, the US dollar has started to strengthen and consumer confidence has improved. At the 2 same time, inflation and interest rates remain low. The Federal Reserve continues to promise additional rate cuts or other monetary stimulus if there is further weakness in the economy. There may also be new fiscal stimuli during the year from lower federal taxes or aid to state and local governments. We believe that consumer and business spending has the potential to advance in this environment. After stabilizing in 2002, corporate profits improved in the first quarter of 2003. A renewed focus on enhancing company balance sheets and cash flows could further boost profitability in coming quarters. Newly strengthened corporate disclosure rules should make investors more comfortable about the credibility of reported earnings. Although stock prices remain vulnerable to negative economic and geopolitical news, the market appears fairly priced for the current environment--with less of a gap between the large-cap and small-cap stock valuations than several years ago. Further episodes of economic uncertainty may again favor stocks of larger, stable companies with established name recognition. Once a recovery is clearly in place, however, stocks of smaller firms seem likely to resume their traditional role as market leaders. Emerging markets, often major beneficiaries of stronger economies, would probably lead the advance of foreign stock prices. Given the considerable economic and market uncertainty that remains, we plan to keep fund portfolios diversified among a broad range of industry sectors and company names. In choosing investments, we will continue to emphasize the earnings outlooks, business prospects, and stock prices of individual companies over the relative potential for industry groups as a whole. 3 PERFORMANCE INFORMATION -- LIBERTY ASSET ALLOCATION FUND Growth of $10,000 investment 4/30/93-4/30/03 Class A shares Class A shares Dow Jones with sales without sales Industrial S&P 500 charge charge Average Index Index 9425 10000 10000 10000 9495 10074 10291 10267 9470 10048 10741 10533 10584 11229 12609 12367 12924 13712 16250 16098 15003 15919 20452 20139 18718 19859 26448 28407 20986 22266 31486 34602 22536 23911 31321 38101 21337 22639 31331 33163 18959 20115 29032 28984 17543 18617 24752 25130 MUTUAL FUND PERFORMANCE CHANGES OVER TIME. PLEASE VISIT WWW.LIBERTYFUNDS.COM FOR DAILY PERFORMANCE UPDATES. Past performance is no guarantee of future investment results. The principal value and investment returns will fluctuate, resulting in a gain or loss on sale. The above illustration assumes a $10,000 investment made on April 30,1993, and reinvestment of income and capital gains distributions. The S&P 500 Index tracks the performance of 500 widely held, large-capitalization US stocks. The Dow Jones Industrial Average is an unmanaged price-weighted average based on the "price only" performance of 30 blue chip stocks. Unlike the fund, indices are not investments, do not incur fees or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index. PERFORMANCE OF A $10,000 INVESTMENT ($) WITHOUT WITH 4/30/93 - 4/30/03 SALES CHARGE SALES CHARGE ------------------------------------------------------ Class A 18,617 17,543 ------------------------------------------------------ Class B 18,055 18,055 ------------------------------------------------------ Class C 17,651 17,651 ------------------------------------------------------ Class G 17,622 17,622 ------------------------------------------------------ Class T 18,560 17,490 ------------------------------------------------------ Class Z 18,912 n/a ------------------------------------------------------ 4 PERFORMANCE INFORMATION -- LIBERTY ASSET ALLOCATION FUND AVERAGE ANNUAL TOTAL RETURN AS OF 4/30/03 (%)
SHARE CLASS A B C G T Z INCEPTION 11/1/98 11/1/98 11/18/02 3/4/96 12/30/91 12/30/91 -------------------------------------------------------------------------------------------------------------------------------- WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT SALES SALES SALES SALES SALES SALES SALES SALES SALES SALES SALES CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE -------------------------------------------------------------------------------------------------------------------------------- 6-month (cumulative) 2.48 -3.38 2.25 -2.75 2.33 1.33 2.16 -2.84 2.52 -3.41 2.72 -------------------------------------------------------------------------------------------------------------------------------- 1-year -7.48 -12.82 -8.00 -12.54 -7.95 -8.86 -8.10 -12.64 -7.42 -12.76 -7.05 -------------------------------------------------------------------------------------------------------------------------------- 5-year -1.29 -2.45 -1.89 -2.23 -1.99 -1.99 -2.02 -2.53 -1.35 -2.51 -1.12 -------------------------------------------------------------------------------------------------------------------------------- 10-year 6.41 5.78 6.09 6.09 5.85 5.85 5.83 5.83 6.38 5.75 6.58 --------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN AS OF 3/31/03(%)
SHARE CLASS A B C G T Z -------------------------------------------------------------------------------------------------------------------------------- WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT SALES SALES SALES SALES SALES SALES SALES SALES SALES SALES SALES CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE -------------------------------------------------------------------------------------------------------------------------------- 6-month (cumulative) 3.15 -2.76 2.83 -2.17 3.00 2.00 2.82 -2.18 3.19 -2.72 3.40 -------------------------------------------------------------------------------------------------------------------------------- 1-year -15.35 -20.20 -15.83 -19.98 -15.71 -16.55 -15.86 -20.01 -15.29 -20.14 -15.01 -------------------------------------------------------------------------------------------------------------------------------- 5-year -2.03 -3.19 -2.63 -2.97 -2.73 -2.73 -2.77 -3.27 -2.09 -3.25 -1.88 -------------------------------------------------------------------------------------------------------------------------------- 10-year 5.83 5.20 5.50 5.50 5.27 5.27 5.25 5.25 5.80 5.17 5.99 --------------------------------------------------------------------------------------------------------------------------------
Past performance is no guarantee of future investment results. The principal value and investment returns will fluctuate, resulting in a gain or loss on sale. All results shown assume reinvestment of distributions. The "with sales charge" returns include the maximum initial sales charge of 5.75% for class A shares, the appropriate class B contingent deferred sales charge (CDSC) for the holding period after purchase as follows: through first year-5%, second year-4%, third year-3%, fourth year-3%, fifth year-2%, sixth year-1%, thereafter-0%, and the class C CDSC of 1.00% that is applied to shares sold within the first year after they are purchased. After holding class C shares for one year, you may sell them at any time without paying a CDSC. For class G shares, the CDSC for the holding period after purchase is as follows: through the first year-5%, second year-4%, third year-4%, fourth year-4%, fifth year-3%, sixth year-2%, seventh year-1%, thereafter-0%. For the class T shares, the "with sales charge" returns include the maximum 5.75% charge. Performance for different share classes will vary based on differences in sales charges and fees associated with each class. Performance results reflect any voluntary waivers or reimbursement of fund expenses by the advisor or its affiliates. Absent these waivers or reimbursement arrangements, performance results would have been lower. The returns for Class A and Class B shares include the returns of Prime A Shares (for Class A shares) and Prime B Shares (for Class B shares) of the Galaxy Fund for periods prior to November 18, 2002. The returns shown for Class A shares and Class B shares also include the returns of Retail A Shares of the Galaxy Fund (adjusted, as necessary, to reflect the sales charges applicable to Class A shares and Class B shares, respectively), for periods prior to the inception of Prime A Shares (November 1, 1998) and Prime B Shares (November 1, 1998). Class A and Class B shares generally would have had substantially similar returns to Retail A Shares because they would have been invested in the same portfolio of securities, although returns would have been lower to the extent that expenses for Class A and Class B shares exceed expenses paid by Retail A Shares. The returns shown for Class C shares for periods prior to November 18, 2002 include the returns of Retail B Shares of the Galaxy Fund (adjusted to reflect the sales charge applicable to Class C shares). The returns shown for Class C shares also include the returns of Retail A Shares of the Galaxy Fund (adjusted to reflect the sales charges applicable to Class C shares) for periods prior to the date of inception of Retail B Shares (March 4, 1996). Class C shares generally would have had substantially similar returns to Retail A and Retail B shares because they would have been invested in the same portfolio of securities, although the returns would have been lower to the extent that expenses for Class C shares exceed expenses paid by Retail A and Retail B Shares. Retail A shares of the Galaxy Fund were initially offered on December 30, 1991. Class A, B and C shares were initially offered on November 18, 2002. The returns for Class G and Class T shares include the returns of Retail A Shares (for Class T shares) and Retail B Shares (for Class G shares) of the Galaxy Fund for periods prior to November 18, 2002, the date on which Class T and Class G shares were initially offered by the Fund. The returns shown for Class G shares also include the returns of Retail A Shares (adjusted to reflect sales charges applicable to Class G shares) for periods prior to the inception of Retail B Shares of the Galaxy Fund (March 4, 1996). Retail A Shares of the Galaxy Fund were initially offered on December 30, 1991. Class G shares generally would have had substantially similar returns to Retail A Shares because they would have been invested in the same portfolio of securities, although the returns would have been lower to the extent that expenses for Class G shares exceed expenses paid by Retail A Shares. The returns for Class Z shares include returns of Trust Shares of the Galaxy Fund for periods prior to November 18, 2002, the date on which Class Z shares were initially offered by the Fund. Trust Shares of the Galaxy Fund were initially offered on December 30, 1991. 5 PERFORMANCE INFORMATION -- LIBERTY EQUITY Growth of $10,000 investment 4/30/93-4/30/03 Class A shares Class A shares with sales charge without sales charge S&P 500 Index 9425 10000 10000 9610 10196 10267 9611 10197 10533 11071 11747 12367 14287 15159 16098 16864 17892 20139 24079 25548 28407 28302 30029 34602 35435 37596 38101 29488 31287 33163 24702 26209 28984 20273 21507 25130 MUTUAL FUND PERFORMANCE CHANGES OVER TIME. PLEASE VISIT WWW.LIBERTYFUNDS.COM FOR DAILY PERFORMANCE UPDATES. Past performance is no guarantee of future investment results. The principal value and investment returns will fluctuate, resulting in a gain or loss on sale. The above illustration assumes a $10,000 investment made on April 30,1993, and reinvestment of income and capital gains distributions. The Standard & Poor's (S&P) 500 Index tracks the performance of 500 widely held, large-capitalization US stocks. Unlike the fund, indices are not investments, do not incur fees or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index. PERFORMANCE OF A $10,000 INVESTMENT ($) WITHOUT WITH 4/30/93 - 4/30/03 SALES CHARGE SALES CHARGE ------------------------------------------------------- Class A 21,507 20,273 ------------------------------------------------------- Class B 20,805 20,805 ------------------------------------------------------- Class C 20,205 20,205 ------------------------------------------------------- Class G 20,149 20,149 ------------------------------------------------------- Class T 21,360 20,135 ------------------------------------------------------- Class Z 22,155 n/a ------------------------------------------------------- 6 PERFORMANCE INFORMATION -- LIBERTY EQUITY GROWTH FUND AVERAGE ANNUAL TOTAL RETURN AS OF 4/30/03 (%)
SHARE CLASS A B C G T Z INCEPTION 11/1/98 11/1/98 11/18/02 3/4/96 12/14/90 12/14/90 ---------------------------------------------------------------------------------------------------------------------------------- WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT SALES SALES SALES SALES SALES SALES SALES SALES SALES SALES SALES CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE ---------------------------------------------------------------------------------------------------------------------------------- 6-month (cumulative) 2.79 -3.12 2.38 -2.62 2.40 1.40 2.12 -2.88 2.63 -3.24 2.91 ---------------------------------------------------------------------------------------------------------------------------------- 1-year -17.91 -22.64 -18.67 -22.74 -18.68 -19.52 -18.91 -22.96 -18.20 -22.90 -17.78 ---------------------------------------------------------------------------------------------------------------------------------- 5-year -3.38 -4.52 -4.02 -4.32 -4.20 -4.20 -4.26 -4.70 -3.51 -4.65 -3.10 ---------------------------------------------------------------------------------------------------------------------------------- 10-year 7.96 7.32 7.60 7.32 7.29 7.29 7.26 7.26 7.88 7.25 8.28 ----------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN AS OF 3/31/03 (%)
SHARE CLASS A B C G T Z ---------------------------------------------------------------------------------------------------------------------------------- WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT SALES SALES SALES SALES SALES SALES SALES SALES SALES SALES SALES CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE ---------------------------------------------------------------------------------------------------------------------------------- 6-month (cumulative) 3.34 -2.62 2.91 -2.09 2.90 1.90 2.72 -2.28 3.18 -2.74 3.45 ---------------------------------------------------------------------------------------------------------------------------------- 1-year -28.39 -32.51 -29.04 -32.59 -29.12 -29.85 -29.25 -32.78 -28.64 -32.73 -28.32 ---------------------------------------------------------------------------------------------------------------------------------- 5-year -4.43 -5.55 -5.04 -5.34 -5.25 -5.25 -5.28 -5.72 -4.55 -5.68 -4.16 ---------------------------------------------------------------------------------------------------------------------------------- 10-year 7.01 6.37 6.66 6.66 6.34 6.34 6.32 6.32 6.94 6.30 7.32 ----------------------------------------------------------------------------------------------------------------------------------
Past performance is no guarantee of future investment results. The principal value and investment returns will fluctuate, resulting in a gain or loss on sale. All results shown assume reinvestment of distributions. The "with sales charge" returns include the maximum initial sales charge of 5.75% for class A shares, the appropriate class B contingent deferred sales charge (CDSC) for the holding period after purchase as follows: through first year-5%, second year-4%, third year-3%, fourth year-3%, fifth year-2%, sixth year-1%, thereafter-0%, and the class C CDSC of 1.00% that is applied to shares sold within the first year after they are purchased. After holding class C shares for one year, you may sell them at any time without paying a CDSC. For class G shares, the CDSC for the holding period after purchase is as follows: through the first year-5%, second year-4%, third year-4%, fourth year-4%, fifth year-3%, sixth year-2%, seventh year-1%, thereafter-0%. For the class T shares, the "with sales charge" returns include the maximum 5.75% charge. Performance for different share classes will vary based on differences in sales charges and fees associated with each class. Performance results reflect any voluntary waivers or reimbursement of fund expenses by the advisor or its affiliates. Absent these waivers or reimbursement arrangements, performance results would have been lower. The returns for Class A and Class B shares include the returns of Prime A Shares (for Class A shares) and Prime B Shares (for Class B shares) of the Galaxy Fund for periods prior to November 18, 2002, the date on which Class A and Class B shares were initially offered by the Fund. The returns shown for Class A shares and Class B shares also include the returns of Retail A Shares of the Galaxy Fund (adjusted, as necessary, to reflect the sales charges applicable to Class A shares and Class B shares, respectively) for periods prior to the date of inception of Prime A Shares and Prime B Shares (October 31, 1998). Class A and Class B shares generally would have had substantially similar returns to Retail A Shares because they would have been invested in the same portfolio of securities, although returns would have been lower to the extent that expenses for Class A and Class B shares exceed expenses paid by Retail A Shares. The returns shown for Class C shares include the returns of Retail B Shares of the Galaxy Fund (adjusted to reflect the sales charge applicable to Class C shares) for periods prior to November 18, 2002, the date on which Class C shares were initially offered by the Fund. The returns shown for Class C shares also include the returns of Retail A Shares of the Galaxy Fund (adjusted to reflect the sales charges applicable to Class C shares) for periods prior to the date of inception of Retail B Shares (March 4, 1996). Class C shares generally would have had substantially similar returns to Retail B Shares because they would have been invested in the same portfolio of securities, although the returns would have been lower to the extent that expenses for Class C shares exceed expenses paid by Retail A and Retail B Shares. The returns for Class G and Class T shares include the returns of Retail A Shares (for Class T shares) and Retail B Shares (for Class G shares) of the Galaxy Fund for periods prior to November 18, 2002, the date on which Class T and Class G shares were initially offered by the Fund. The returns shown for Class G shares also include the returns of Retail A Shares (adjusted to reflect sales charges applicable to Class G shares) for periods prior to the inception of Retail B Shares of the Galaxy Fund (March 4, 1996). Retail A Shares were initially offered on December 14, 1990. Class G shares generally would have had substantially similar returns to Retail A Shares because they would have been invested in the same portfolio of securities, although the returns would be lower to the extent that expenses for Class G shares exceed expenses paid by Retail A Shares. The returns for Class Z shares include returns of Trust Shares of the Galaxy Fund for periods prior to November 18, 2002, the date on which Class Z shares were initially offered by the Fund. Trust Shares of the Galaxy Fund were initially offered on December 14, 1990. 7 PERFORMANCE INFORMATION -- LIBERTY EQUITY VALUE FUND Growth of $10,000 investment 4/30/93-4/30/03 Class A shares Class A shares with sales without sales charge charge S&P 500 Index 9425 10000 10000 9694 10285 10267 10379 11012 10533 11727 12443 12367 14857 15764 16098 17637 18713 20139 24860 26377 28407 27935 29639 34602 28664 30413 38101 29381 31174 33163 27348 29017 28984 20820 22094 25130 MUTUAL FUND PERFORMANCE CHANGES OVER TIME. PLEASE VISIT WWW.LIBERTYFUNDS.COM FOR DAILY PERFORMANCE UPDATES. Past performance is no guarantee of future investment results. The principal value and investment returns will fluctuate, resulting in a gain or loss on sale. The above illustration assumes a $10,000 investment made on April 30, 1993, and reinvestment of income and capital gains distributions. The Standard & Poor's (S&P) 500 Index is an unmanaged index that tracks the performance of 500 widely held, large-capitalization US stocks. Unlike the fund, indices are not investments, do not incur fees or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index. PERFORMANCE OF A $10,000 INVESTMENT ($) WITHOUT WITH 4/30/93 - 4/30/03 SALES CHARGE SALES CHARGE -------------------------------------------------------- Class A 22,094 20,820 -------------------------------------------------------- Class B 21,003 21,003 -------------------------------------------------------- Class C 21,025 21,025 -------------------------------------------------------- Class G 21,025 21,025 -------------------------------------------------------- Class T 22,050 20,778 -------------------------------------------------------- Class Z 22,834 n/a -------------------------------------------------------- 8 PERFORMANCE INFORMATION -- LIBERTY EQUITY VALUE FUND AVERAGE ANNUAL TOTAL RETURN AS OF 4/30/03 (%)
SHARE CLASS A B C G T Z INCEPTION 11/25/02 11/25/02 11/25/02 3/4/96 9/1/88 9/1/88 ---------------------------------------------------------------------------------------------------------------------------------- WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT SALES SALES SALES SALES SALES SALES SALES SALES SALES SALES SALES CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE ---------------------------------------------------------------------------------------------------------------------------------- 6-month (cumulative) 4.28 -1.67 3.58 -1.42 3.69 2.69 3.69 -1.31 4.07 -1.87 4.41 ---------------------------------------------------------------------------------------------------------------------------------- 1-year -23.86 -28.23 -24.64 -28.41 -24.57 -25.32 -24.57 -28.34 -24.01 -28.38 -23.63 ---------------------------------------------------------------------------------------------------------------------------------- 5-year -3.48 -4.62 -4.24 -4.49 -4.22 -4.22 -4.22 -4.60 -3.52 -4.65 -3.13 ---------------------------------------------------------------------------------------------------------------------------------- 10-year 8.25 7.61 7.70 7.70 7.71 7.71 7.71 7.71 8.23 7.59 8.61 ----------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN AS OF 3/31/03 (%)
SHARE CLASS A B C G T Z ---------------------------------------------------------------------------------------------------------------------------------- WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT SALES SALES SALES SALES SALES SALES SALES SALES SALES SALES SALES CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE ---------------------------------------------------------------------------------------------------------------------------------- 6-month (cumulative) -0.22 -5.92 -0.68 -5.64 -0.56 -1.56 -0.56 -5.53 -0.22 -5.92 0.00 ---------------------------------------------------------------------------------------------------------------------------------- 1-year -33.33 -37.15 -33.98 -37.28 -33.91 -34.57 -33.91 -37.21 -33.33 -37.15 -33.05 ---------------------------------------------------------------------------------------------------------------------------------- 5-year -4.85 -5.96 -5.57 -5.82 -5.55 -5.55 -5.55 -5.92 -4.85 -5.96 -4.48 ---------------------------------------------------------------------------------------------------------------------------------- 10-year 7.14 6.51 6.61 6.61 6.63 6.63 6.63 6.63 7.14 6.51 7.50 ----------------------------------------------------------------------------------------------------------------------------------
Past performance is no guarantee of future investment results. The principal value and investment returns will fluctuate, resulting in a gain or loss on sale. All results shown assume reinvestment of distributions. The "with sales charge" returns include the maximum initial sales charge of 5.75% for class A shares, the appropriate class B contingent deferred sales charge (CDSC) for the holding period after purchase as follows: through first year-5%, second year-4%, third year-3%, fourth year-3%, fifth year-2%, sixth year-1%, thereafter-0%, and the class C CDSC of 1.00% that is applied to shares sold within the first year after they are purchased. After holding class C shares for one year, you may sell them at any time without paying a CDSC. For class G shares, the CDSC for the holding period after purchase is as follows: through the first year-5%, second year-4%, third year-4%, fourth year-4%, fifth year-3%, sixth year-2%, seventh year-1%, thereafter-0%. For the class T shares, the "with sales charge" returns include the maximum 5.75% charge. Performance for different share classes will vary based on differences in sales charges and fees associated with each class. Performance results reflect any voluntary waivers or reimbursement of fund expenses by the advisor or its affiliates. Absent these waivers or reimbursement arrangements, performance results would have been lower. Class A, Class B and Class C are newer classes of shares. Their performance information includes returns of the Retail A Shares (for Class A shares) and Retail B Shares (for Class B and Class C shares) of the Galaxy Fund for periods prior to November 25, 2002, the date on which Class A, B and C shares were initially offered by the Fund. The returns shown for Class B and Class C shares also include the performance of Retail A Shares of the Galaxy Fund for periods prior to the inception of Retail B Shares (March 4, 1996). Class B and Class C shares generally would have had substantially similar returns to Retail A Shares because they would have been invested in the same portfolio of securities, although the returns would have been lower to the extent that expenses for Class B and Class C shares exceed expenses paid by Retail A Shares. The returns have not been restated to reflect any differences in expenses (such as 12b-1 fees) between any of the predecessor shares and the newer classes of shares. The returns for Class G and Class T shares include the returns of Retail A Shares (for Class T shares) and Retail B Shares (for Class G shares) of the Galaxy Fund for periods prior to November 25, 2002, the date on which Class T and Class G shares were initially offered by the Fund. The returns shown for Class G shares also include the returns of Retail A Shares (adjusted to reflect the sales charge applicable to Class G shares), for periods prior to the inception of Retail B Shares of the Galaxy Fund (March 4, 1996). Retail A Shares were initially offered on September 1, 1988. Class G shares generally would have had substantially similar returns to Retail A Shares because they would have been invested in the same portfolio of securities, although the returns would have been lower to the extent that expenses for Class G shares exceed expenses paid by Retail A Shares. The returns for Class Z shares include returns of Trust Shares of the Galaxy Fund for periods prior to November 25, 2002, the date on which Class Z shares were initially offered by the Fund. 9 PERFORMANCE INFORMATION -- LIBERTY INTERNATIONAL EQUITY FUND Growth of $10,000 investment 4/30/93-4/30/03 Class A shares Class A shares MSCI All with sales without sales Country World MSCI EAFE charge charge ex US Index Index 9425 10000 10000 10000 9610 10196 10222 10211 11139 11819 11775 11662 11253 11939 12349 12314 13140 13942 13860 13720 13865 14711 13978 13599 17950 19045 16232 16169 19794 21002 17445 17697 24477 25971 20218 20168 18941 20096 16733 16873 15499 16445 14856 14531 12308 13055 12593 12171 MUTUAL FUND PERFORMANCE CHANGES OVER TIME.PLEASE VISITWWW.LIBERTYFUNDS.COM FOR DAILY PERFORMANCE UPDATES. Past performance is no guarantee of future investment results. The principal value and investment returns will fluctuate, resulting in a gain or loss on sale. The above illustration assumes a $10,000 investment made on April 30, 1993 and reinvestment of income and capital gains distributions. The Morgan Stanley Capital International (MSCI) All Country World ex. US Index is an unmanaged index of global stock market performance that includes developed and emerging markets but excludes the United States. The fund's primary benchmark used to be the MSCI Europe Australasia and Far East (EAFE) Index. This index is now the fund's secondary index. The MSCI EAFE Index is an unmanaged index that tracks the performance of selected stocks in Europe, Australia, Asia and the Far East. Unlike the fund, indices are not investments, do not incur fees or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index. PERFORMANCE OF A $10,000 INVESTMENT ($) WITHOUT WITH 4/30/93 - 4/30/03 SALES CHARGE SALES CHARGE ------------------------------------------------------- Class A 13,055 12,308 ------------------------------------------------------- Class B 12,727 12,727 ------------------------------------------------------- Class C 12,592 12,592 ------------------------------------------------------- Class G 12,498 12,498 ------------------------------------------------------- Class T 12,899 12,162 ------------------------------------------------------- Class Z 13,534 n/a ------------------------------------------------------- 10 PERFORMANCE INFORMATION -- LIBERTY INTERNATIONAL EQUITY FUND AVERAGE ANNUAL TOTAL RETURN AS OF 4/30/03 (%)
SHARE CLASS A B C G T Z INCEPTION 11/1/98 11/1/98 11/18/02 11/1/98 12/30/91 12/30/91 ---------------------------------------------------------------------------------------------------------------------------------- WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT SALES SALES SALES SALES SALES SALES SALES SALES SALES SALES SALES CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE ---------------------------------------------------------------------------------------------------------------------------------- 6-month (cumulative) 1.10 -4.75 0.86 -4.14 1.19 0.19 0.44 -4.56 1.11 -4.67 1.46 ---------------------------------------------------------------------------------------------------------------------------------- 1-year -20.62 -25.18 -20.93 -24.88 -20.91 -21.70 -21.50 -25.43 -20.69 -25.26 -20.07 ---------------------------------------------------------------------------------------------------------------------------------- 5-year -7.28 -8.37 -7.75 -8.04 -7.94 -7.94 -8.08 -8.52 -7.50 -8.59 -7.01 ---------------------------------------------------------------------------------------------------------------------------------- 10-year 2.70 2.10 2.44 2.44 2.33 2.33 2.26 2.26 2.58 1.98 3.07 ----------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN AS OF 3/31/03 (%)
SHARE CLASS A B C G T Z ---------------------------------------------------------------------------------------------------------------------------------- WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT SALES SALES SALES SALES SALES SALES SALES SALES SALES SALES SALES CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE ---------------------------------------------------------------------------------------------------------------------------------- 6-month (cumulative) -1.69 -7.30 -1.82 -6.73 -1.49 -2.48 -2.27 -7.15 -1.71 -7.34 -1.31 ---------------------------------------------------------------------------------------------------------------------------------- 1-year -26.06 -30.29 -26.26 -29.95 -26.18 -26.92 -26.76 -30.42 -26.07 -30.32 -25.47 ---------------------------------------------------------------------------------------------------------------------------------- 5-year -8.19 -9.27 -8.62 -8.91 -8.80 -8.80 -8.94 -9.38 -8.40 -9.48 -7.89 ---------------------------------------------------------------------------------------------------------------------------------- 10-year 2.57 1.96 2.33 2.33 2.23 2.23 2.15 2.15 2.45 1.85 2.95 ----------------------------------------------------------------------------------------------------------------------------------
Past performance is no guarantee of future investment results. The principal value and investment returns will fluctuate, resulting in a gain or loss on sale. All results shown assume reinvestment of distributions. The "with sales charge" returns include the maximum initial sales charge of 5.75% for class A shares, the appropriate class B contingent deferred sales charge (CDSC) for the holding period after purchase as follows: through first year-5%, second year-4%, third year-3%, fourth year-3%, fifth year-2%, sixth year-1%, thereafter-0%, and the class C CDSC of 1.00% that is applied to shares sold within the first year after they are purchased. After holding class C shares for one year, you may sell them at any time without paying a CDSC. For class G shares, the CDSC for the holding period after purchase is as follows: through the first year-5%, second year-4%, third year-4%, fourth year-4%, fifth year-3%, sixth year-2%, seventh year-1%, thereafter-0%. For the class T shares, the "with sales charge" returns include the maximum 5.75% charge. Performance for different share classes will vary based on differences in sales charges and fees associated with each class. Performance results reflect any voluntary waivers or reimbursement of fund expenses by the advisor or its affiliates. Absent these waivers or reimbursement arrangements, performance results would have been lower. The returns for Class A and Class B shares include the returns of Prime A Shares (for Class A shares) and Prime B Shares (for Class B shares) of the Galaxy Fund for periods prior to November 18, 2002, the date on which Class A and Class B shares were initially offered by the Fund. The returns shown for Class A shares and Class B shares also include the returns of Retail A Shares of the Galaxy Fund (adjusted, as necessary, to reflect the sales charge applicable to Class A shares and Class B shares, respectively) for periods prior to the date of inception of Prime A and Prime B Shares (November 1, 1998). Class A and Class B shares generally would have had substantially similar returns to Retail A Shares because they would have been invested in the same portfolio of securities, although returns would have been lower to the extent that expenses for Class A and Class B shares exceed expenses paid by Retail A Shares. The returns shown for Class C shares include the returns of Retail B Shares of the Galaxy Fund (adjusted to reflect the sales charge applicable to Class C shares) for periods prior to November 18, 2002, the date on which Class C shares were initially offered by the Fund. The returns shown for Class C shares also include the returns of Retail A Shares of the Galaxy Fund (adjusted to reflect the sales charges applicable to Class C shares) for periods prior to the date of inception of Retail B Shares (November 1, 1998). Class C shares generally would have had substantially similar returns because they would have been invested in the same portfolio of securities, although the returns would have been lower to the extent that expenses for Class C shares exceed expenses paid by Retail A and Retail B Shares. The returns for Class G and Class T shares include the returns of Retail A Shares (for Class T shares) and Retail B Shares (for Class G shares) of the Galaxy Fund for periods prior to November 18, 2002, the date on which Class T and Class G shares were initially offered by the Fund. The returns shown for Class G shares also include the returns of Retail A Shares (adjusted to reflect the sales charges applicable to Class T and Class G shares) for periods prior to the inception of Retail B Shares of the Galaxy Fund (October 31, 1998). Retail A Shares of the Galaxy Fund were initially offered on December 30, 1991. Class G shares generally would have had substantially similar returns to Retail A Shares because they would have been invested in the same portfolio of securities, although the returns would have been lower to the extent that expenses for Class G shares exceed expenses paid by Retail A Shares. The returns for Class Z shares include returns of Trust Shares of the Galaxy Fund for periods prior to November 18, 2002, the date on which Class Z shares were initially offered by the Fund. 11 PERFORMANCE INFORMATION -- LIBERTY LARGE CAP CORE FUND Growth of $10,000 investment 4/30/93-4/30/03 Class A shares Class A shares with sales without sales charge charge S&P 500 Index 9425 10000 10000 9665 10255 10267 10082 10697 10533 11771 12489 12367 14812 15715 16098 17507 18575 20139 24113 25584 28407 26488 28104 34602 27629 29314 38101 27131 28787 33163 23979 25441 28984 20119 21343 25130 MUTUAL FUND PERFORMANCE CHANGES OVER TIME. PLEASE VISIT WWW.LIBERTYFUNDS.COM FOR DAILY PERFORMANCE UPDATES. Past performance is no guarantee of future investment results. The principal value and investment returns will fluctuate, resulting in a gain or loss on sale. The above illustration assumes a $10,000 investment made on April 30, 1993, and reinvestment of income and capital gains distributions. The Standard & Poor's (S&P) 500 Index tracks the performance of 500 widely held, large-capitalization US stocks. Unlike the fund, indices are not investments, do not incur fees or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index. PERFORMANCE OF A $10,000 INVESTMENT ($) WITHOUT WITH 4/30/93 - 4/30/03 SALES CHARGE SALES CHARGE ------------------------------------------------------ Class A 21,343 20,119 ------------------------------------------------------ Class B 20,638 20,638 ------------------------------------------------------ Class C 20,284 20,284 ------------------------------------------------------ Class G 20,106 20,106 ------------------------------------------------------ Class T 21,214 19,997 ------------------------------------------------------ Class Z 21,825 n/a ------------------------------------------------------ 12 PERFORMANCE INFORMATION -- LIBERTY LARGE CAP CORE FUND AVERAGE ANNUAL TOTAL RETURN AS OF 4/30/03 (%)
SHARE CLASS A B C G T Z INCEPTION 11/1/98 11/1/98 12/9/02 3/4/96 2/12/93 12/14/92 ---------------------------------------------------------------------------------------------------------------------------------- WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT SALES SALES SALES SALES SALES SALES SALES SALES SALES SALES SALES CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE ---------------------------------------------------------------------------------------------------------------------------------- 6-month (cumulative) 4.08 -1.86 3.73 -1.27 4.58 3.58 3.66 -1.34 4.07 -1.88 4.15 ---------------------------------------------------------------------------------------------------------------------------------- 1-year -16.13 -20.93 -16.78 -20.93 -16.17 -17.00 -16.90 -21.05 -16.21 -21.02 -15.98 ---------------------------------------------------------------------------------------------------------------------------------- 5-year -3.56 -4.70 -4.21 -4.51 -4.22 -4.22 -4.39 -4.85 -3.68 -4.82 -3.39 ---------------------------------------------------------------------------------------------------------------------------------- 10-year 7.88 7.24 7.51 7.51 7.33 7.33 7.23 7.23 7.81 7.18 8.12 ----------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN AS OF 3/31/03 (%)
SHARE CLASS A B C G T Z ---------------------------------------------------------------------------------------------------------------------------------- WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT SALES SALES SALES SALES SALES SALES SALES SALES SALES SALES SALES CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE ---------------------------------------------------------------------------------------------------------------------------------- 6-month (cumulative) 3.59 -2.32 3.12 -1.88 4.02 3.02 3.14 -1.86 3.48 -2.45 3.76 ---------------------------------------------------------------------------------------------------------------------------------- 1-year -26.12 -30.38 -26.71 -30.38 -26.07 -26.81 -26.69 -30.35 -26.23 -30.46 -25.91 ---------------------------------------------------------------------------------------------------------------------------------- 5-year -4.80 -5.92 -5.44 -5.74 -5.45 -5.45 -5.61 -6.06 -4.93 -6.05 -4.62 ---------------------------------------------------------------------------------------------------------------------------------- 10-year 6.94 6.31 6.58 6.58 6.41 6.41 6.32 6.32 6.86 6.23 7.18 ----------------------------------------------------------------------------------------------------------------------------------
Past performance is no guarantee of future investment results. The principal value and investment returns will fluctuate, resulting in a gain or loss on sale. All results shown assume reinvestment of distributions. The "with sales charge" returns include the maximum initial sales charge of 5.75% for class A shares, the appropriate class B contingent deferred sales charge (CDSC) for the holding period after purchase as follows: through first year-5%, second year-4%, third year-3%, fourth year-3%, fifth year-2%, sixth year-1%, thereafter-0%, and the class C CDSC of 1.00% that is applied to shares sold within the first year after they are purchased. After holding class C shares for one year, you may sell them at any time without paying a CDSC. For class G shares, the CDSC for the holding period after purchase is as follows: through the first year-5%, second year-4%, third year-4%, fourth year-4%, fifth year-3%, sixth year-2%, seventh year-1%, thereafter-0%. For the class T shares, the "with sales charge" returns include the maximum 5.75% charge. Performance for different share classes will vary based on differences in sales charges and fees associated with each class. Performance results reflect any voluntary waivers or reimbursement of fund expenses by the advisor or its affiliates. Absent these waivers or reimbursement arrangements, performance results would have been lower. The returns for Class A and Class B shares include the returns of Prime A Shares (for Class A shares) and Prime B Shares (for Class B shares) of the Galaxy Fund for periods prior to December 9, 2002, the date on which Class A and Class B shares were initially offered by the Fund. The returns shown for Class A shares and Class B shares also include the returns of Retail A Shares of the Galaxy Fund (adjusted to reflect the sales charge applicable to Class A shares and Class B shares, respectively) for periods prior to the inception of Prime A and Prime B Shares (October 31, 1998). Class A and Class B shares generally would have had substantially similar returns to Retail A Shares because they would have been invested in the same portfolio of securities, although the returns would have been lower to the extent that expenses for Class A and Class B shares exceed expenses paid by Retail A Shares. The returns shown for Class C shares include the returns of Retail B Shares of the Galaxy Fund (adjusted to reflect the sales charge applicable to Class C shares) for periods prior to December 9, 2002, the date on which Class C shares were initially offered. The returns shown for Class C shares also include the returns of Retail A Shares of the Galaxy Fund (adjusted to reflect the sales charges applicable to Class C shares) for periods prior to the inception of Retail B Shares (March 4, 1998). Class C shares generally would have had substantially similar returns to Retail A and Retail B Shares because they would have been invested in the same portfolio of securities, although the returns would have been lower to the extent that expenses for Class C shares exceed expenses paid by Retail A and Retail B Shares. Retail A Shares were initially offered on February 12, 1993. The returns for Class G and Class T shares include the returns of Retail A Shares (for Class T shares) and Retail B Shares (for Class G shares) of the Galaxy Fund for periods prior to December 9, 2002, the date on which Class T and Class G shares were initially offered by the Fund. The returns shown for Class G shares also include the returns of Retail A Shares for periods prior to the inception of Retail B Shares of the Galaxy Fund (March 4, 1996). Retail A Shares were initially offered on February 12, 1993. Class G shares generally would have had substantially similar returns to Retail A Shares because they would have been invested in the same portfolio of securities, although the returns would have been lower to the extent that expenses for Class G shares exceed expenses paid by Retail A Shares. The returns for Class Z shares include returns of Trust Shares of the Galaxy Fund for periods prior to December 9, 2002, the date on which Class Z shares were initially offered by the Fund, and returns of Trust Shares of the Shawmut Fund (whose shares were initially offered on December 14, 1992), for periods prior to December 14, 1995. 13 PERFORMANCE INFORMATION -- LIBERTY SMALL CAP FUND Growth of $10,000 investment 4/30/93-4/30/03 Class A shares Class A shares S&P Russell with sales without sales SmallCap 2000 charge charge 600 Index Index 9425 10000 10000 10000 9744 10338 10537 10442 10486 11126 11444 11477 11616 12325 12132 12306 15889 16858 16462 16369 17470 18535 17080 16380 26317 27922 25067 23322 22159 23510 21483 21162 25790 27363 25884 25060 31073 32969 27982 24344 38596 40950 32610 25969 31989 33955 25781 20578 MUTUAL FUND PERFORMANCE CHANGES OVER TIME. PLEASE VISIT WWW.LIBERTYFUNDS.COM FOR DAILY PERFORMANCE UPDATES. Past performance is no guarantee of future investment results. The principal value and investment returns will fluctuate, so you may have a gain or loss when you sell your shares. The above illustration assumes a $10,000 investment made on April 30, 1993 and reinvestment of income and capital gains distributions. The Russell 2000 Index is an unmanaged index that tracks the performance of the 2,000 smallest of the 3,000 largest U.S. companies based on market capitalization. The Standard & Poor's (S&P) SmallCap 600 Index is an unmanaged index that tracks the performance of 600 domestic companies traded on the New York Stock Exchange, the American Stock Exchange and NASDAQ. The S&P SmallCap 600 Index is heavily weighted with the stocks of companies with small market capitalizations. Unlike the fund, indices are not investments, do not incur fees or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index. PERFORMANCE OF A $10,000 INVESTMENT ($) WITHOUT WITH 4/30/93 - 4/30/03 SALES CHARGE SALES CHARGE -------------------------------------------------------- Class A 33,955 31,989 -------------------------------------------------------- Class B 32,748 32,748 -------------------------------------------------------- Class C 32,829 32,829 -------------------------------------------------------- Class G 32,524 32,524 -------------------------------------------------------- Class T 33,582 31,637 -------------------------------------------------------- Class Z 34,791 n/a -------------------------------------------------------- 14 PERFORMANCE INFORMATION -- LIBERTY SMALL CAP FUND AVERAGE ANNUAL TOTAL RETURN AS OF 4/30/03 (%)
SHARE CLASS A B C G T Z INCEPTION 11/1/98 11/1/98 11/18/02 11/1/98 2/12/93 12/14/92 ---------------------------------------------------------------------------------------------------------------------------------- WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT SALES SALES SALES SALES SALES SALES SALES SALES SALES SALES SALES CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE ---------------------------------------------------------------------------------------------------------------------------------- 6-month (cumulative) 6.20 0.11 5.70 0.70 6.57 5.57 5.57 0.57 6.09 -0.05 6.24 ---------------------------------------------------------------------------------------------------------------------------------- 1-year -17.08 -21.86 -17.86 -21.76 -17.16 -17.95 -17.93 -16.85 -17.20 -21.96 -16.90 ---------------------------------------------------------------------------------------------------------------------------------- 5-year 3.99 2.76 3.24 2.98 3.29 3.29 3.09 2.71 3.76 2.53 4.22 ---------------------------------------------------------------------------------------------------------------------------------- 10-year 13.00 12.33 12.60 12.60 12.62 12.62 12.52 12.52 12.88 12.21 13.28 ----------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN AS OF 3/31/03 (%)
SHARE CLASS A B C G T Z ---------------------------------------------------------------------------------------------------------------------------------- WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT SALES SALES SALES SALES SALES SALES SALES SALES SALES SALES SALES CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE ---------------------------------------------------------------------------------------------------------------------------------- 6-month (cumulative) -2.36 -7.97 -2.75 -7.37 -1.96 -2.89 -2.86 -7.47 -2.45 -8.03 -2.17 ---------------------------------------------------------------------------------------------------------------------------------- 1-year -21.36 -25.88 -22.03 -25.73 -21.40 -22.15 -22.12 -25.82 -21.44 -25.95 -21.04 ---------------------------------------------------------------------------------------------------------------------------------- 5-year 2.59 1.39 1.87 1.62 1.92 1.92 1.74 1.36 2.37 1.17 2.83 ---------------------------------------------------------------------------------------------------------------------------------- 10-year 11.67 11.02 11.28 11.28 11.31 11.31 11.21 11.21 11.55 10.90 11.95 ----------------------------------------------------------------------------------------------------------------------------------
Past performance is no guarantee of future investment results. The principal value and investment returns will fluctuate, resulting in a gain or loss on sale. All results shown assume reinvestment of distributions. The "with sales charge" returns include the maximum initial sales charge of 5.75% for class A shares, the appropriate class B contingent deferred sales charge (CDSC) for the holding period after purchase as follows: through first year-5%, second year-4%, third year-3%, fourth year-3%, fifth year-2%, sixth year-1%, thereafter-0%, and the class C CDSC of 1.00% that is applied to shares sold within the first year after they are purchased. After holding class C shares for one year, you may sell them at any time without paying a CDSC. For class G shares, the CDSC for the holding period after purchase is as follows: through the first year-5%, second year-4%, third year-4%, fourth year-4%, fifth year-3%, sixth year-2%, seventh year-1%, thereafter-0%. For the class T shares, the "with sales charge" returns include the maximum 5.75% charge. Performance for different share classes will vary based on differences in sales charges and fees associated with each class. Performance results reflect any voluntary waivers or reimbursement of fund expenses by the advisor or its affiliates. Absent these waivers or reimbursement arrangements, performance results would have been lower. The returns for Class A and Class B shares include the returns of Prime A Shares (for Class A shares) and Prime B Shares (for Class B shares) of the Galaxy Fund for periods prior to November 18, 2002, the date on which Class A and Class B shares were initially offered by the Fund. The returns shown for Class A shares and Class B shares also include the returns of Retail A Shares of the Galaxy Fund (adjusted, as necessary, to reflect the sales charge applicable to Class A shares and Class B shares, respectively) for periods prior to the date of inception of Prime A and Prime B Shares (October 31, 1998). Class A and Class B shares generally would have had substantially similar returns to Retail A Shares because they would have been invested in the same portfolio of securities, although the returns would have been lower to the extent that expenses for Class A and Class B shares exceed expenses paid by Retail A Shares. The returns shown for Class C shares include the returns of Retail B Shares of the Galaxy Fund (adjusted to reflect the sales charges applicable to Class C shares) for periods prior to November 18, 2002, the date on which Class C shares were initially offered by the Fund. The returns shown for Class C shares also include the returns of Retail A Shares of the Galaxy Fund (adjusted to reflect the sales charges applicable to Class C shares) for periods prior to the date of inception of Retail B Shares (October 31, 1998). Class C shares generally would have had substantially similar returns because they would have been invested in the same portfolio of securities, although the returns would have been lower to the extent that expenses for Class C shares exceed expenses paid by Retail A and Retail B Shares. The returns for Class G and Class T shares include the returns of Retail A Shares (for Class T shares) and Retail B Shares (for Class G shares) of the Galaxy Fund for periods prior to November 18, 2002, the date on which Class T and Class G shares were initially offered by the Fund. The returns shown for Class G shares also include the returns of Retail A Shares (adjusted to reflect the sales charges applicable to Class G shares) for periods prior to the inception of Retail B Shares of the Galaxy Fund (October 31, 1998). Retail A Shares were initially offered on February 12, 1993. Class G shares generally would have had substantially similar returns to Retail A Shares because they would have been invested in the same portfolio of securities, although the returns would be lower to the extent that expenses for Class G shares exceed expenses paid by Retail A Shares. The returns for Class Z shares include returns of Trust Shares of the Galaxy Fund for periods prior to November 18, 2002, and returns of Trust shares of the Shawmut Fund for periods prior to December 4, 1995. 15 PERFORMANCE INFORMATION -- LIBERTY SMALL COMPANY EQUITY FUND Growth of $10,000 investment 4/30/93-4/30/03 Class A shares Class A shares with sales without sales Russell 2000 charge charge Index 9425 10000 10000 10223 10847 10442 11420 12117 11477 12890 13676 12306 19965 21183 16369 16820 17846 16380 24589 26089 23322 17478 18544 21162 29775 31592 25060 25913 27494 24344 24238 25717 25969 17743 18834 20578 MUTUAL FUND PERFORMANCE CHANGES OVER TIME. PLEASE VISIT WWW.LIBERTYFUNDS.COM FOR DAILY PERFORMANCE UPDATES. Past performance is no guarantee of future investment results. The principal value and investment returns will fluctuate, resulting in a gain or loss on sale. The above illustration assumes a $10,000 investment made on April 30, 1993 and reinvestment of income and capital gains distributions. The Russell 2000 Index is an unmanaged index that tracks the performance of the 2,000 smallest of the 3,000 largest US companies, based on market capitalization. Unlike the fund, indices are not investments, do not incur fees or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index. PERFORMANCE OF A $10,000 INVESTMENT ($) WITHOUT WITH 4/30/93 - 4/30/03 SALES CHARGE SALES CHARGE ----------------------------------------------------- Class A 18,834 17,743 ----------------------------------------------------- Class B 17,944 17,944 ----------------------------------------------------- Class C 17,944 17,944 ----------------------------------------------------- Class G 17,911 17,911 ----------------------------------------------------- Class T 18,818 17,728 ----------------------------------------------------- Class Z 19,598 n/a ----------------------------------------------------- 16 PERFORMANCE INFORMATION -- LIBERTY SMALL COMPANY EQUITY FUND AVERAGE ANNUAL TOTAL RETURN AS OF 4/30/03 (%)
SHARE CLASS A B C G T Z INCEPTION 11/18/02 11/18/02 11/18/02 3/4/96 12/30/91 12/30/91 ---------------------------------------------------------------------------------------------------------------------------------- WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT SALES SALES SALES SALES SALES SALES SALES SALES SALES SALES SALES CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE ---------------------------------------------------------------------------------------------------------------------------------- 6-month (cumulative) 3.83 -2.18 3.38 -1.62 3.38 2.38 3.19 -1.81 3.74 -2.27 4.07 ---------------------------------------------------------------------------------------------------------------------------------- 1-year -26.76 -30.97 -27.37 -31.01 -27.37 -28.10 -27.51 -31.13 -26.82 -31.02 -26.44 ---------------------------------------------------------------------------------------------------------------------------------- 5-year -6.31 -7.42 -6.99 -7.30 -6.99 -6.99 -7.03 -7.49 -6.33 -7.43 -5.90 ---------------------------------------------------------------------------------------------------------------------------------- 10-year 6.54 5.90 6.02 6.02 6.02 6.02 6.00 6.00 6.53 5.89 6.96 ----------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN AS OF 3/31/03 (%)
SHARE CLASS A B C G T Z ---------------------------------------------------------------------------------------------------------------------------------- WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT SALES SALES SALES SALES SALES SALES SALES SALES SALES SALES SALES CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE ---------------------------------------------------------------------------------------------------------------------------------- 6-month (cumulative) 0.74 -5.05 0.19 -4.81 0.29 -0.71 0.19 -4.81 0.65 -5.13 0.88 ---------------------------------------------------------------------------------------------------------------------------------- 1-year -34.12 -37.91 -34.73 -37.99 -34.66 -35.32 -34.73 -37.99 -34.18 -37.96 -33.85 ---------------------------------------------------------------------------------------------------------------------------------- 5-year -7.78 -8.87 -8.48 -8.78 -8.46 -8.46 -8.48 -8.94 -7.80 -8.88 -7.40 ---------------------------------------------------------------------------------------------------------------------------------- 10-year 5.55 4.92 5.03 5.03 5.04 5.04 5.03 5.03 5.54 4.91 5.96 ----------------------------------------------------------------------------------------------------------------------------------
Past performance is no guarantee of future investment results. The principal value and investment returns will fluctuate, resulting in a gain or loss on sale. All results shown assume reinvestment of distributions. The "with sales charge" returns include the maximum initial sales charge of 5.75% for class A shares, the appropriate class B contingent deferred sales charge (CDSC) for the holding period after purchase as follows: through first year-5%, second year-4%, third year-3%, fourth year-3%, fifth year-2%, sixth year-1%, thereafter-0%, and the class C CDSC of 1.00% that is applied to shares sold within the first year after they are purchased. After holding class C shares for one year, you may sell them at any time without paying a CDSC. For class G shares, the CDSC for the holding period after purchase is as follows: through the first year-5%, second year-4%, third year-4%, fourth year-4%, fifth year-3%, sixth year-2%, seventh year-1%, thereafter-0%. For the class T shares, the "with sales charge" returns include the maximum 5.75% charge. Performance for different share classes will vary based on differences in sales charges and fees associated with each class. Performance results reflect any voluntary waivers or reimbursement of fund expenses by the advisor or its affiliates. Absent these waivers or reimbursement arrangements, performance results would have been lower. Class A, Class B and Class C are newer classes of shares. Their performance information includes returns of Retail A Shares (for Class A shares) and Retail B Shares (for Class B and Class C shares) of the Galaxy Fund for periods prior to November 18, 2002, the date on which Class A, B and C shares were initially offered by the Fund. The returns of Class B and Class C shares also include the returns of Retail A Shares for periods prior to the inception of Retail B Shares of the Galaxy Fund (March 4, 1996). Class B and Class C shares generally would have had substantially similar returns to Retail A Shares because they would have been invested in the same portfolio of securities, although the returns would be lower to the extent that expenses for Class B and Class C shares exceed expenses paid by Retail A Shares. The returns have not been restated to reflect any differences in expenses between the predecessor shares and the newer class of shares. If differences in expenses had been reflected, the returns shown for periods prior to the inception of the newer classes of shares would have been lower. The returns for Class G and T shares include the returns of Retail A Shares (for Class T shares) and Retail B Shares (for Class G shares) of the Galaxy Fund for periods prior to November 18, 2002, the date on which Class T and Class G shares were initially offered by the Fund. The returns shown for Class G shares also include the returns of Retail A Shares (adjusted to reflect the sales charges applicable to Class G shares) for periods prior to the inception of Retail B Shares of the Galaxy Fund (March 4, 1996). Retail A Shares were initially offered on December 30, 1991. Class G shares generally would have had substantially similar returns to Retail A Shares because they would have been invested in the same portfolio of securities, although the returns would have been lower to the extent that expenses for Class G shares exceed expenses paid by Retail A Shares. The returns for Class Z shares include the returns of Trust Shares of the Galaxy Fund for periods prior to November 18, 2002, the date on which Class Z shares were initially offered by the Fund. 17 PERFORMANCE INFORMATION - LIBERTY STRATEGIC EQUITY FUND Growth of $10,000 investment 4/30/93-4/30/03 Class A shares Class A shares with sales without sales S&P 500 charge charge Index 9425 10000 10000 9585 10170 10619 10698 11351 12935 10548 11191 14243 12891 13677 12397 12726 13502 10835 10002 10613 9394 MUTUAL FUND PERFORMANCE CHANGES OVER TIME. PLEASE VISIT WWW.LIBERTYFUNDS.COM FOR DAILY PERFORMANCE UPDATES. Past performance is no guarantee of future investment results. The principal value and investment returns will fluctuate, resulting in a gain or loss on sale. The above illustration assumes a $10,000 investment made on March 4, 1998, and reinvestment of income and capital gains distributions. The Standard & Poor's (S&P) 500 Index tracks the performance of 500 widely held, large-capitalization US stocks. Unlike the fund, indices are not investments, do not incur fees or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index. Index information is from February 28, 1998. PERFORMANCE OF A $10,000 INVESTMENT ($) WITHOUT WITH 3/4/98 - 4/30/03 SALES CHARGE SALES CHARGE ---------------------------------------------------------- Class A 10,612 10,002 ---------------------------------------------------------- Class B 10,286 10,119 ---------------------------------------------------------- Class C 10,274 10,274 ---------------------------------------------------------- Class G 10,264 10,096 ---------------------------------------------------------- Class T 10,611 10,001 ---------------------------------------------------------- Class Z 10,880 n/a ---------------------------------------------------------- 18 PERFORMANCE INFORMATION -- LIBERTY STRATEGIC EQUITY FUND AVERAGE ANNUAL TOTAL RETURN AS OF 4/30/03 (%)
SHARE CLASS A B C G T Z INCEPTION 11/25/02 11/25/02 11/25/02 3/4/98 3/4/98 3/4/98 ---------------------------------------------------------------------------------------------------------------------------------- WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT SALES SALES SALES SALES SALES SALES SALES SALES SALES SALES SALES CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE ---------------------------------------------------------------------------------------------------------------------------------- 6-month (cumulative) 0.49 -5.28 0.21 -4.79 0.09 -0.91 -0.01 -5.00 0.48 -5.29 0.65 ---------------------------------------------------------------------------------------------------------------------------------- 1-year -21.39 -25.93 -21.85 -25.75 -21.94 -22.72 -22.03 -25.92 -21.40 -25.94 -20.96 ---------------------------------------------------------------------------------------------------------------------------------- 5-year 0.86 -0.33 0.17 -0.16 0.14 0.14 0.12 -0.37 0.85 -0.33 1.30 ---------------------------------------------------------------------------------------------------------------------------------- Life 1.16 0.00 0.55 0.23 0.53 0.53 0.51 0.19 1.16 0.00 1.65 ----------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN AS OF 3/31/03 (%)
SHARE CLASS A B C G T Z ---------------------------------------------------------------------------------------------------------------------------------- WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT SALES SALES SALES SALES SALES SALES SALES SALES SALES SALES SALES CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE ---------------------------------------------------------------------------------------------------------------------------------- 6-month (cumulative) 1.24 -4.56 1.12 -3.88 0.99 -0.01 0.88 -4.12 1.23 -4.57 1.66 ---------------------------------------------------------------------------------------------------------------------------------- 1-year -28.08 -32.22 -28.51 -32.08 -28.61 -29.32 -28.69 -32.24 -28.09 -32.23 -27.67 ---------------------------------------------------------------------------------------------------------------------------------- 5-year -0.70 -1.86 -1.35 -1.68 -1.38 -1.38 -1.40 -1.89 -0.70 -1.86 -0.26 ---------------------------------------------------------------------------------------------------------------------------------- Life -0.24 -1.40 -0.83 -1.15 -0.86 -0.86 -0.88 -1.20 -0.24 -1.40 0.25 ----------------------------------------------------------------------------------------------------------------------------------
Past performance is no guarantee of future investment results. The principal value and investment returns will fluctuate, resulting in a gain or loss on sale. All results shown assume reinvestment of distributions. The "with sales charge" returns include the maximum initial sales charge of 5.75% for class A shares, the appropriate class B contingent deferred sales charge (CDSC) for the holding period after purchase as follows: through first year-5%, second year-4%, third year-3%, fourth year-3%, fifth year-2%, sixth year-1%, thereafter-0%, and the class C CDSC of 1.00% that is applied to shares sold within the first year after they are purchased. After holding class C shares for one year, you may sell them at any time without paying a CDSC. For class G shares, the CDSC for the holding period after purchase is as follows: through the first year-5%, second year-4%, third year-4%, fourth year-4%, fifth year-3%, sixth year-2%, seventh year-1%, thereafter-0%. For the class T shares, the "with sales charge" returns include the maximum 5.75% charge. Performance for different share classes will vary based on differences in sales charges and fees associated with each class. Performance results reflect any voluntary waivers or reimbursement of fund expenses by the advisor or its affiliates. Absent these waivers or reimbursement arrangements, performance results would have been lower. Class A, Class B and Class C are newer classes of shares. Their performance information includes returns of the Fund's Class T shares (for Class A) and Class G shares (for Class B and Class C) for periods prior to their inception. The returns shown for Class T and G shares include the returns of Retail A Shares (for Class T) and Retail B Shares (for Class G) of the Galaxy Fund for periods prior to November 25, 2002, the date on which Class A, B and C shares were initially offered by the Fund. The returns have not been restated to reflect any differences in expenses between the predecessor shares and the newer classes of shares. If differences in expenses had been reflected, the returns shown for periods prior to the inception of the newer classes of shares would have been lower. The returns for Class G and Class T shares include the returns of Retail A Shares (for Class T shares) and Retail B Shares (for Class G shares) of the Galaxy Fund for periods prior to November 25, 2002, the date on which Class T and Class G shares were initially offered by the Fund. Retail A Shares and Retail B Shares of the Galaxy Fund were initially offered on March 4, 1998. The returns for Class Z shares include returns of Trust Shares of the Galaxy Fund for periods prior to November 25, 2002, the date on which Class Z shares were initially offered by the Fund. Trust Shares were initially offered by the Galaxy Fund on March 4, 1998. 19 PORTFOLIO REVIEWS NET ASSET VALUE PER SHARE AS OF 4/30/03 ($) Class A 13.05 Class B 13.05 Class C 13.05 Class G 13.03 Class T 13.06 Class Z 13.07 DISTRIBUTIONS DECLARED PER SHARE 11/1/02 - 4/30/03 ($) Class A 0.12 Class B 0.09 Class C 0.06 Class G 0.08 Class T 0.13 Class Z 0.14 LIBERTY ASSET ALLOCATION FUND BY HARVEY B. HIRSCHHORN LEAD PORTFOLIO MANAGER For the six-month period that ended April 30, 2003, class A shares of Liberty Asset Allocation Fund returned 2.48% without sales charge. The fund did not perform as well as its benchmark, the S&P 500 Index, which returned 4.47%, or as well as the Lehman Brothers Aggregate Bond Index, which returned 4.31%. It also fell short of the Morningstar(R) Domestic Hybrid Funds Category average of 4.03%.1 However, it did perform better than the Dow Jones Industrial Average (DJIA), which had a total return of 0.99%. Overweight holdings and weak stock selection in the consumer staples and telecommunications groups hurt relative returns. During the period, large-cap value stocks edged out their growth counterparts, while the reverse was true with small- and mid-cap stocks. Within the value universe, the best performers were companies with strong credit and earnings quality. In this environment, investments in companies with earnings that lagged market expectations suffered disproportionately. PIE CHART: Asset allocations as of April 30, 2003 (%) Common stock: 62 Corporate notes & bonds: 18 Mortgage-backed securities: 9 US Government and agency obligations: 2 Other: 9 A PERIOD OF UNCERTAINTY AND RELIEF The past six months were characterized by economic and political uncertainty, which preceded the war in Iraq, and a sluggish economy. Nevertheless, stocks rose modestly during the first three months of the period. As it became clear that military action in Iraq was inevitable, oil and energy prices began to increase. Business and consumer confidence stalled as companies and individuals delayed spending decisions. By early March, US and foreign stock markets had dropped back to levels of last October. But once the war began and hopes were raised that US military involvement would be brief, markets revived. As interest rates declined modestly and reached record lows, bond prices rallied with higher-yielding corporate issues posting the strongest returns. CHANGE IN MANAGEMENT STYLE On December 21, 2002, the fund implemented a new strategy and expanded its diversification to add international exposure. Asset allocation decisions now are being made by the lead portfolio manager, but the various stock, bond and international segments are managed by experts in each area. The fund remains very broadly diversified, investing in large-, mid- and small-cap growth and value stocks, international stocks, investment grade and high-yield bonds and real estate investment trusts (REITs). BAR CHART: Financials 11.6 Consumer discretionary 10.2 Health care 9.9 Information technology 7.8 Industrials 6.0 Asset allocations and sector breakdowns are calculated as a percentage of net assets. Because the fund is actively managed, there can be no guarantee the fund will continue to maintain these sectors in the future. _______________ 1 (C)2003 by Morningstar, Inc. All rights reserved. The information contained herein is the proprietary information of Morningstar, Inc., may not be copied or redistributed for any purpose and may only be used for noncommercial personal purposes. The information contained herein is not represented or warranted to be accurate, correct, complete or timely. Morningstar, Inc. shall not be responsible for investment decisions, damages or other losses resulting from the use of this information. Past performance is no guarantee of future performance. Morningstar, Inc. has not granted consent for it to be considered or deemed an "expert" under the Securities Act of 1933. 20 PORTFOLIO REVIEWS TOP 5 EQUITY HOLDINGS AS OF 4/30/03 (%) Citigroup 1.6 SPDR Trust Series 1 1.6 Pfizer 1.6 Microsoft 1.1 American International Group 0.9 Holdings are calculated as a percentage of net assets. Because the fund is actively managed, there can be no guarantee the fund will continue to maintain these holdings in the future. Allocation changes during the period were minor. We increased the fund's US large-cap stock holdings because we felt that the United States still had an edge over foreign markets. We also added to holdings in US small-cap stocks because we believe they have the strongest earnings growth prospects and are less vulnerable to rising pension costs than larger companies. Our higher stake in US stocks helped performance, as US stocks fared better than their foreign counterparts despite the weakness of the dollar. On the fixed-income side, we favored corporate bonds over US Treasury issues, and high-yield bonds over investment grade issues, which had a positive impact on returns. Our underweight position in REITs, however, hurt the fund in the first three months of 2003. MOVING AHEAD While the risks that badgered the markets over the past six months are not completely behind us, we believe that much of the uncertainty has cleared away. First quarter earnings reports of 2003 were surprisingly strong. The economy appeared more robust, and interest rate levels remained historically low. Wild cards for the period ahead include the budget and trade deficits, the risk of decreased international cooperation, fluctuations in the US dollar exchange rate and the timing of capital spending increases. Assuming that consumer spending remains intact and capital spending kicks in by mid year, we believe the prospects for the year ahead are encouraging. /s/ Harvey B. Hirschhorn HARVEY B. HIRSCHHORN, CFA, IS THE LEAD PORTFOLIO MANAGER OF THE FUND AND EXECUTIVE VICE PRESIDENT OF COLUMBIA MANAGEMENT ADVISORS, INC. HE HAS BEEN ASSOCIATED WITH THE ADVISOR AND ITS PREDECESSORS SINCE 1973. MR. HIRSCHHORN IS RESPONSIBLE FOR ALLOCATING THE FUND'S ASSETS AMONG THE VARIOUS ASSET CLASSES, WHILE INVESTMENT DECISIONS FOR THE PORTION OF THE FUND ALLOCATED TO EACH ASSET CLASS ARE MADE BY INVESTMENT PROFESSIONALS WITH PARTICULAR EXPERTISE IN SUCH ASSET CLASS. AN INVESTMENT IN THE FUND OFFERS THE POTENTIAL FOR LONG-TERM GROWTH, BUT ALSO INVOLVES CERTAIN RISKS, INCLUDING STOCK MARKET FLUCTUATIONS DUE TO ECONOMIC AND BUSINESS DEVELOPMENTS. 21 PORTFOLIO REVIEWS NET ASSET VALUE PER SHARE AS OF 4/30/03 ($) Class A 16.48 Class B 15.94 Class C 15.95 Class G 15.44 Class T 16.40 Class Z 16.70 DISTRIBUTIONS DECLARED PER SHARE 11/1/02 - 4/30/03 ($) Class A 0.03 Class B 0.00 Class C 0.00 Class G 0.00 Class T 0.00 Class Z 0.06 LIBERTY EQUITY GROWTH FUND BY BOB ARMKNECHT PORTFOLIO MANAGER For the six-month period that ended April 30, 2003, class A shares of Liberty Equity Growth Fund returned 2.79% without sales charge. The fund trailed the S&P 500 Index, which returned 4.47%, and the Morningstar(R) Large Blend Category, which returned 3.36% over the same period.1 In an uncertain economy, where company prospects changed frequently, weak performances by key investments, especially in the energy, defense and consumer staples areas, caused the fund to trail its benchmark and peer group. Disappointments included energy holdings BP and Kerr-McGee as well as Coca-Cola and Anheuser-Busch in the consumer staples area, (1.9%, 0.9%, 1.0% and 1.6% of net assets, respectively).2 CONTINUED EMPHASIS ON "GROWTH AT A REASONABLE PRICE" The fund's investments in industrial stocks such as 3M, Illinois Tool Works and United Technologies (1.0%, 1.5% and 1.7% of net assets, respectively) gained ground last fall as a result of their strong business prospects. Consumer and health care companies later made positive contributions to performance. The fund's investments in Liberty Media (1.8% of net assets) in the consumer group, Citigroup, Inc. and JP Morgan Chase in the financial group (2.6% and 1.5% of net assets, respectively) and information technology firms such as IBM, Cisco Systems and Microsoft (1.9%, 1.3% and 5.3% of net assets, respectively) rebounded after their stocks had been bid down sharply in the summer of 2002. The fund also benefited from strong results in Bed, Bath & Beyond, Maxim Integrated Products and Fannie Mae (1.7%, 0.9%, and 1.8% of net assets, respectively). Believing that the fund was appropriately positioned for an uncertain economic and market environment, we made few strategic changes during the reporting period. We maintained the fund's emphasis on health care stocks. However, we eliminated our investment in Forest Laboratories, feeling that the stock price reflected most of the growth that we expected. We eliminated our positions in stocks of health care companies whose business prospects had dimmed - such as Tenet Healthcare and Wyeth. We used the proceeds from these sales to initiate positions in Alcon and Biovail (1.2% and 0.8% of net assets, respectively), two specialized health care companies with strong flows of new products. We also made some adjustments in the information technology area. We initiated positions in Dell Computer and Lexmark International (0.6% and 1.1% of net assets, respectively), computer companies that have demonstrated an ability to gain market share in an increasingly competitive industry. The fund remained underweight in stocks from the telecommunications and utility groups - where we believe growth prospects and prices are less attractive. LOOKING AHEAD While large-cap growth stocks are priced at a premium to the stock market as a whole, this premium is considerably less than it was several years ago. However, we believe that large-cap growth stocks PIE CHART: Sector breakdown as of April 30, 2003 (%) Financials: 18.8 Health care: 18.5 Information technology: 16.4 Consumer discretionary: 13.8 Industrials: 11.2 Consumer staples: 8.5 Energy: 8.2 Telecommunications services: 0.6 Utilities: 0.8 Sector breakdowns are calculated as a percentage of net assets. Because the fund is actively managed, there can be no guarantee the fund will continue to maintain these sectors in the future. __________________ 1 (C)2003 by Morningstar, Inc. All rights reserved. The informationcontained herein is the proprietary information of Morningstar, Inc., may not be copied or redistributed for any purpose and may only be used for noncommercial ,personal purposes. The information contained herein is not represented or warranted to be accurate, correct, complete or timely. Morningstar, Inc. shall not be responsible for investment decisions, damages or other losses resulting from the use of this information. Past performance is no guarantee of future performance. Morningstar, Inc. has not granted consent for it to be considered or deemed an "expert" under the Securities Act of 1933. 2 Holdings are disclosed as of April 30, 2003, and are subject to change. 22 TOP 10 HOLDINGS AS OF 4/30/03 (%) Microsoft 5.3 Pfizer 4.7 General Electric 2.6 Citigroup 2.6 Wells Fargo 2.4 Medtronic 2.4 Bank of America 2.2 American International Group 2.2 Target 2.2 Johnson & Johnson 2.0 Holdings are calculated as a percentage of net assets. Because the fund is actively managed, there can be no guarantee the fund will continue to maintain these holdings in the future. will continue to attract investors looking for companies with proven earnings and good liquidity. The sector should also benefit as a weak US dollar enhances the earnings of firms with multinational operations. In searching for higher-growth opportunities, we expect to maintain an overweighting in the health care sector - concentrating on the faster-growing mid-cap area - and to focus on specialty retail firms within the consumer discretionary group. We also expect to maintain the fund's exposure to the defense area, where we believe that earnings could improve with further restructuring of US military operations. /s/ Bob Armknecht BOB ARMKNECHT, CFA, HAS MANAGED THE LIBERTY EQUITY GROWTH FUND SINCE ITS INCEPTION IN DECEMBER OF 1990. HE HAS MANAGED EQUITY PORTFOLIOS FOR COLUMBIA MANAGEMENT ADVISORS, INC. AND ITS PREDECESSORS SINCE 1988. AN INVESTMENT IN THE FUND OFFERS THE POTENTIAL FOR LONG-TERM GROWTH, BUT ALSO INVOLVES CERTAIN RISKS, INCLUDING STOCK MARKET FLUCTUATIONS DUE TO ECONOMIC AND BUSINESS DEVELOPMENT AND THE POSSIBILITY OF LOSSES DUE TO THE SENSITIVITY OF GROWTH STOCK PRICES TO CHANGES IN CURRENT OR EXPECTED EARNINGS. 23 PORTFOLIO REVIEWS NET ASSET VALUE PER SHARE AS OF 4/30/03 ($) Class A 9.99 Class B 9.54 Class C 9.55 Class G 9.55 Class T 9.97 Class Z 10.18 LIBERTY EQUITY VALUE FUND BY ERIC REMOLE AND MICHAEL WELHOELTER PORTFOLIO MANAGERS For the six-month period ended April 30, 2003, class A shares of Liberty Equity Value Fund returned 4.28% without sales charge. This return was less than the S&P 500 Index, which returned 4.47%. The fund also underperformed the Russell 1000 Value Index, which returned 5.25%. However, it did better than the Morningstar(R) Large Blend Funds Category average, which was 3.36%.1 The fund's performance was hurt by an overweight in consumer cyclical stocks relative to its benchmarks. Investments in Jones Apparel Group (1.6% of net assets) and Blockbuster, which we subsequently sold, were disappointments.2 Both suffered as consumer demand was dampened by pending war with Iraq and other political uncertainties that delayed an economic rebound. Offsetting this negative impact was the fund's emphasis on smaller companies such as Alpharma (0.9% of net assets), which has been growing rapidly in niche businesses such as pharmaceuticals for animals. Small-cap firms, which tend to do well early in an economic recovery, benefited from a healthy rally as investors looked for attractive opportunities at the end of the period. EMPHASIS ON QUALITY As economic and political uncertainty caused investors to focus more on the prospects of individual companies than on the outlook of different industry groups, we gave increased emphasis to stock selection. We gave greater attention to high-quality stocks in the value area emphasizing companies with strong profit margins, earnings and cash flows as well as stocks with attractive prices and yields. Where possible, we took advantage of situations with a specific catalyst (such as increased recognition by market analysts or favorable price momentum) that could accelerate earnings growth. As part of our risk-management effort, we reduced the fund's exposure to health care and consumer cyclicals. In health care, we eliminated Barr Laboratories, whose strong performance had made it less attractive versus other investment opportunities, and Laboratory Corp. of America, which no longer met either our valuation or quality criteria. We also eliminated our position in BJ's Wholesale Club, which was a drag on performance in the consumer cyclical area. We increased positions in stocks of basic materials and consumer services firms, where the fund had been significantly underweight. In the forest and specialty chemical groups within the basic materials area, we added Rayonier and Sigma-Aldrich (0.5% and 1.3% of net assets, respectively). In addition to meeting our quality criteria, both companies have enjoyed steady levels of earnings. At the end of the reporting period the fund was also somewhat underweight in the energy sector. Pie Chart: Sector breakdowns as of April 30, 2003 (%) Materials: 4.1 Other assets & liabilities 0.2 Financials: 33.6 Consumer discretionay: 12.5 Industrials: 10.2 Health care: 8.4 Energy: 8.4 Telecommunications services: 7.1 Utilities: 5.4 Information technology: 5.2 Consumer staples: 4.9 Sector breakdowns are calculated as a percentage of net assets. Because the fund is actively managed, there is no guarantee the fund will maintain these sector breakdowns in the future. _________________ 1 (C)2003 by Morningstar, Inc. All rights reserved. This information contained herein is the proprietary information of Morningstar, Inc., may not be copied or redistributed for any purpose and may only used for noncommercial ,personal purposes. The information contained herein is not represented or warranted to be accurate, correct, complete or timely. Morningstar, Inc. shall not be responsible for investment decisions, damages or other losses resulting from the use of this information. Past performance is no guarantee of future performance. Morningstar, Inc. has not granted consent for it to be considered or deemed an "expert" under the Securities Act of 1933. 2 Holdings are disclosed as of April 30, 2003, and are subject to change. 24 TOP 10 HOLDINGS AS OF 4/30/03 (%) Exxon Mobil 4.6 Bank of America 3.5 Verizon Communications 3.0 Charter One Financial 2.8 Wells Fargo 2.7 Citigroup 2.5 American International Group 2.1 Washington Mutual 2.1 Cendant 2.1 US Bancorp 2.1 Holdings are calculated as a percentage of net assets. Because the fund is actively managed, there is no guarantee the fund will maintain these holdings in the future. CONTINUED FOCUS ON INDIVIDUAL ISSUES AND RISK CONTROL Investors seemed to prefer growth stocks in the first few months of 2003. However, value-oriented issues have recently regained market favor as it has become less clear that an end to war with Iraq will bring a sustainable economic recovery. While the economic picture remains unsettled in the months ahead, we expect value stocks to perform well relative to the rest of the market. We plan to continue choosing investments based on their individual merits and minimize risk within the portfolio by emphasizing a broad range of quality companies that represent good value. /s/ Eric Remole /s/ Michael Welhoelter ERIC REMOLE AND MICHAEL WELHOELTER HAVE CO-MANAGED THE FUND SINCE NOVEMBER 2002. THEY HAVE BOTH BEEN WITH COLUMBIA MANAGEMENT ADVISORS, INC. AND ITS PREDECESSORS SINCE 2001. AN INVESTMENT IN THE FUND OFFERS THE POTENTIAL FOR LONG-TERM GROWTH, BUT ALSO INVOLVES CERTAIN RISKS, INCLUDING STOCK MARKET FLUCTUATIONS DUE TO ECONOMIC AND BUSINESS DEVELOPMENT. 25 PORTFOLIO REVIEWS NET ASSET VALUE PER SHARE AS OF 4/30/03 ($) Class A 9.34 Class B 9.29 Class C 9.26 Class G 9.20 Class T 9.28 Class Z 9.46 DISTRIBUTIONS DECLARED PER SHARE 11/1/02 - 4/30/03 ($) Class A 0.04 Class B 0.01 Class C 0.01 Class G 0.00 Class T 0.06 Class Z 0.11 TOP 10 HOLDINGS AS OF 4/30/03 (%) Vodafone Group 2.6 BHP Billiton 2.4 Telefonica 2.4 Smith & Nephew 2.3 Royal Bank of Scotland 2.2 Siam Cement Public Co. 1.8 BP 1.6 ENI 1.5 Novartis 1.5 British Sky Broadcasting Group 1.5 Holdings are calculated as a percentage of net assets. Because the fund is actively managed, there is no guarantee the fund will maintain these holdings in the future. LIBERTY INTERNATIONAL EQUITY FUND By Christopher Legallet and James McAlear Portfolio Managers For the six-month period that ended April 30, 2003, class A shares of Liberty International Equity Fund returned 1.10% without a sales charge. The fund's return fell short of the MSCI AC World ex-US Index, which returned 3.08%. We introduced this new benchmark in our last report to shareholders, believing its composition best reflects the fund's portfolio. The fund also under-performed the Morningstar(R) Foreign Stock Category, which returned 1.36% over the same period.1 A relatively large position in Japan and an underweight in European markets were the primary reasons for the fund's underperformance. OVERSEAS ECONOMIC GROWTH WAS WEAK Few overseas economies made progress during this six-month reporting period, as uncertainty about military action in Iraq, instability in North Korea and the SARS (Severe Acute Respiratory Syndrome) epidemic took their toll on consumer and business confidence. While all major central banks lowered interest rates in order to boost economic growth, their efforts produced only modest results. Economic growth in most countries was tepid at best. US DOLLAR DECLINED DURING PERIOD A declining dollar was an aid to overall performance because it boosted the returns of foreign stocks converted into US dollars. The dollar was especially weak against the euro, which rose nearly 13% during this six-month period. Pie Chart: Sector breakdown as of April 30, 2003 (%) Utilities: 3.4 Other assets & liabilities: 1.5 Consumer discretionary: 20.9 Financials: 16.4 Health care: 12.9 Consumer staples: 10.8 Materials: 8.2 Information technology: 7.8 Industrials: 7.7 Telecommunication services: 6.7 Energy: 3.7 Sector breakdowns are calculated as a percentage of net assets. Because the fund is actively managed, there is no guarantee the fund will maintain these sector breakdowns in the future. A COMMITMENT TO ASIA Our biggest regional commitment was to Asia, where we focused on companies benefiting from the strong growth of the Chinese economy. Despite a generally poor global economy, China's gross domestic product (GDP)--a measure of the country's economic growth--continued to grow at a projected annual rate of approximately 7% to 9%. Thailand was a particularly bright spot, as government policies emphasized the development of a domestic economy. Japan accounted for the fund's largest country allocation in Asia. We favored Japan because stock valuations were attractive and profit forecasts were improving. However, the Japanese market declined during the period, primarily the result of an unwinding of cross-share holdings. Historically, many Japanese companies have maintained large positions in each other's companies--a practice known as "cross-share holding." Recently, the Japanese government passed legislation to reduce the amount of these holdings that banks are allowed to own. As these positions were sold to comply with the new guidelines, Japanese stock prices came under pressure. We also had significant exposure to the United Kingdom, where the Bank of England cut interest rates. By contrast, the European Central Bank has kept interest rates relatively high. Concerned about continued weak economic growth, we kept a relatively light exposure to European stocks. __________________ 1 (C)2003 by Morningstar, Inc. All rights reserved. This information contained herein is the proprietary information of Morningstar, Inc., may not be copied or redistributed for any purpose and may only used for noncommercial , personal purposes. The information contained herein is not represented or warranted to be accurate, correct, complete or timely. Morningstar, Inc. shall not be responsible for investment decisions, damages or other losses resulting from the use of this information. Past performance is no guarantee of future performance. Morningstar, Inc. has not granted consent for it to be considered or deemed an "expert" under the Securities Act of 1933. 2 Holdings are disclosed as of April 30, 2003, and are subject to change. 26 TOP 5 COUNTRIES AS OF 4/30/03 (%) United Kingdom 27.3 Japan 17.8 France 7.4 Spain 6.1 Netherlands 5.2 Country breakdowns are calculated as a percentage of net assets. Because the fund is actively managed, there is no guarantee the fund will maintain these country breakdowns in the future. PHARMACEUTICAL AND FINANCIAL STOCKS WERE THEMES We took advantage of the emphasis on containing health care costs by investing in generic pharmaceutical companies, such as Teva Pharmaceutical Industries in Israel and Ranbaxy Laboratories in India (1.4% and 0.7% of net assets, respectively).2 Because financial stocks were weak early in 2003, their prices were attractive; therefore, we invested in banks and insurance stocks. STRONG OVERSEAS CURRENCIES COULD AID GROWTH Looking ahead, we believe the decline in the US dollar and the strength of the euro may force European countries to become more aggressive in lowering interest rates. Such actions could help stimulate European economic growth. Asian economies with currencies pegged to the US dollar should also benefit from a weaker dollar, as it would make their products cheaper in Europe and the United States. An improvement in consumer and business confidence and easing of the SARS epidemic could also help spur a modest upturn in overseas economic growth. /s/ Christopher Legallet /s/ James Mcalear CHRISTOPHER LEGALLET HAS CO-MANAGED THE LIBERTY INTERNATIONAL EQUITY FUND SINCE AUGUST OF 2002. HE HAS MANAGED INVESTMENT PORTFOLIOS FOR COLUMBIA MANAGEMENT ADVISORS, INC. (COLUMBIA MANAGEMENT) AND ITS PREDECESSORS SINCE 1997. JAMES MCALEAR HAS CO-MANAGED THE LIBERTY INTERNATIONAL EQUITY FUND SINCE AUGUST OF 2002. HE HAS MANAGED INVESTMENT PORTFOLIOS FOR COLUMBIA MANAGEMENT SINCE 1992. There are also specific risks involved when investing in foreign stocks, such as currency exchange rate fluctuations, economic change, instability of emerging countries and political developments. 27 PORTFOLIO REVIEWS NET ASSET VALUE PER SHARE AS OF 4/30/03 ($) Class A 10.45 Class B 10.26 Class C 10.26 Class G 10.17 Class T 10.42 Class Z 10.47 DISTRIBUTIONS DECLARED PER SHARE 11/1/02 - 4/30/03 ($) Class A 0.04 Class B 0.01 Class C 0.01 Class G 0.01 Class T 0.04 Class Z 0.06 LIBERTY LARGE CAP CORE FUND BY GREG MILLER PORTFOLIO MANAGER For the six-month period ended April 30, 2003, class A shares of Liberty Large Cap Core Fund returned 4.08% without a sales charge. The S&P 500 Index returned 4.47% while the Morningstar(R) Large Blend Category returned 3.36% over the same period.1 Strong performance from the fund's telecommunications, financial and health care investments helped offset weaker returns in the communications equipment, consumer discretionary and energy groups. In the first two months of the period, telecommunication services stocks, such as Verizon Communications and BellSouth Corp. (1.5% and 0.8% of net assets, respectively), helped performance. However, some of these gains were offset by weak results from communications equipment stocks, such as Harris Corp. and Motorola (1.3% and 0.9% of net assets, respectively).2 Later in the period, a broad range of investments boosted returns. Health care stocks, such as Guidant Corp. and Wyeth (1.3% and 1.4% of net assets, respectively), did well, as did financial stocks. In particular, Countrywide Financial Corp. (2.1% of net assets) benefited from continued strong mortgage refinancing activity, leading us to take profits during the period. JP Morgan Chase & Co. (2.4% of net assets) also rallied amid improvements in credit quality and profitable fixed-income trading activities. The fund's below-average stake in high-priced consumer staples stocks relative to its benchmark also buoyed performance as investors abandoned the sector in favor of more economically-sensitive industries. Energy stocks, such as Baker Hughes and Kerr-McGee (1.2% and 1.0% of net assets, respectively), declined as investors anticipated lower energy prices following the end of the war with Iraq. An above-average stake in energy relative to our benchmark hampered returns. Consumer discretionary stocks, such as McDonald's and Walt Disney (1.8% and 1.3% of net assets, respectively), also slumped amid concerns that consumer spending was slowing. In addition, technology stocks turned in disappointing results, as corporate spending remained weak. TRADING ENERGY STOCKS FOR BETTER VALUES In anticipation of falling energy commodity prices, we reduced the fund's energy position. We also trimmed our stakes in a range of stocks that had performed well. These included Lowe's, 3M, Bank of America and Staples (2.1%, 2.1%, 2.5% and 1.8% of net assets, respectively). We used the proceeds from these sales to take advantage of attractive prices elsewhere, buying shares in consumer staples stocks as well as economically sensitive issues. At the end of the period, the fund had a modest overweighting relative to its benchmark in energy stocks and a sizable overweighting in industrial stocks, reflecting our estimate of their greater potential in an improving economy. Pie Chart: Sector breakdown as of April 30, 2003 (%) Utilities: 1.1 Other assets & liabilities: 0.7 Financials: 20.6 Industrials: 16.8 Health care: 13.7 Consumer discretionary: 13.2 Information technology: 12.5 Consumer staples: 7.4 Energy: 6.9 Telecommunication services: 7.4 Materials: 2.4 Sector breakdowns are calculated as a percentage of net assets. Because the fund is actively managed, there is no guarantee the fund will maintain these sector breakdowns in the future. __________________ 1 (C)2003 by Morningstar, Inc. All rights reserved. The information contained herein is the proprietary information of Morningstar, Inc., may not be copied or redistributed for any purpose and may only be used for noncommercial, personal purposes. The information contained herein is not represented or warranted to be accurate, correct, complete or timely. Morningstar, Inc. shall not be responsible for investment decisions, damages or other losses resulting from the use of this information. Past performance is no guarantee of future performance. Morningstar, Inc. has not granted consent for it to be considered or deemed an "expert" under the Securities Act of 1933. 2 Holdings are disclosed as of April 30, 2003, and are subject to change. 28 TOP 10 EQUITY HOLDINGS AS OF 4/30/03 (%) Citigroup 3.1 Microsoft 3.1 Pfizer 3.0 General Electric 2.6 Bank of America 2.5 JP Morgan Chase 2.4 IBM 2.4 Merck & Co. 2.3 Anheuser-Busch 2.2 American International Group 2.2 Holdings are calculated as a percentage of net assets. Because the fund is actively managed, there can be no guarantee the fund will continue to maintain these holdings in the future. FOCUSED ON INDIVIDUAL OPPORTUNITIES We expect individual stock selection to be the main driver of returns going forward. In this environment, we expect the fund to benefit from its continued focus on specific opportunities that offer good value. That said, we will also monitor exposure to different industry groups. If the economic outlook deteriorates, we may reduce our stake in industrial stocks. Given the generally strong performance by financials in recent months, we may soon take profits there. /s/ Greg Miller GREG MILLER HAS MANAGED OF THE LIBERTY LARGE CAP CORE FUND SINCE JULY, 1998. HE HAS MANAGED EQUITY PORTFOLIOS FOR THE COLUMBIA MANAGEMENT ADVISORS, INC. AND ITS PREDECESSORS SINCE 1985. An investment in the fund offers the potential for long-term growth, but also involves certain risks, including stock market fluctuations due to economic and business developments. 29 PORTFOLIO REVIEWS NET ASSET VALUE PER SHARE AS OF 4/30/03 ($) Class A 12.77 Class B 12.36 Class C 12.37 Class G 12.25 Class T 12.65 Class Z 12.88 DISTRIBUTIONS DECLARED PER SHARE 11/1/02 - 4/30/03 ($) Class A 0.65 Class B 0.65 Class C 0.65 Class G 0.65 Class T 0.65 Class Z 0.66 LIBERTY SMALL CAP FUND BY PETER LARSON PORTFOLIO MANAGER For the six-month period that ended April 30, 2003, class A shares of Liberty Small Cap Fund returned 6.20% without sales charge. The fund trailed the Russell 2000 Index, which returned 7.55%, but beat its competitive peer group, the Morningstar(R) Small Blend Category, which returned 5.24% during the same period.1 The fund fell behind the Russell 2000 Index partly because it had less of an emphasis on growth stocks, especially in the strongly performing technology sector. The fund also had a higher stake than the index in the basic materials and energy sectors, which had weak returns. Strong stock selection, however, within the technology and health care sectors helped the fund outpace its Morningstar peer group. Most of the fund's gains occurred in the final weeks of the reporting period, when the small-cap sector led the market's advance. Having seized attractive investment opportunities in value-oriented issues when prices for small-cap stocks were weak, the fund was well positioned to take advantage of the rebound. MAKING THE MOST OF WEAK PRICES Like the market as a whole, small-cap stocks began the reporting period on a positive note with a rally in November and December of 2002. However, disappointing earnings reports weakened prices for small-cap stocks from Janu-ary to March of 2003. Small-cap stocks then helped to lead a market advance in April as the earnings outlook improved and the United States ended its war with Iraq. Pie Chart: Sector breakdown as of April 30, 2003 (%) Other assets & liabilities: 1.5 Industrials: 7.7 Consumer discretionary: 20.9 Information technology: 7.8 Health care: 12.9 Financials: 16.4 Materials: 8.2 Energy: 3.7 Utilities: 3.4 Consumer staples: 10.8 Telecommunication services: 6.7 Sector breakdowns are calculated as a percentage of net assets. Because the fund is actively managed, there is no guarantee the fund will maintain these sector breakdowns in the future. During the six-month period, we sold holdings in utility companies and real estate investment trusts (REITs) that had been part of our defensive investment strategy in a weak economy. Using the proceeds from these sales, and new money that came into the fund, we bought stocks in a range of high-quality companies whose prices had become particularly attractive. Many of these stocks performed well when prices rebounded at the end of the reporting period. Of further benefit were gains from takeovers of low-priced stocks like Caminus, a computer software company.2 We eliminated our position in Caminus at the end of the period. As in the previous fiscal year, we found many investment opportunities among the very smallest companies in the small-cap sector, a group that is commonly referred to as "micro-cap" stocks. As investors tended to favor stocks with greater liquidity in an uncertain market, prices for micro-cap issues became very attractive. We also continued to emphasize stocks from cyclical sectors that tend to be especially responsive to changes in the economy. These stocks, which are highly sensitive to energy costs, detracted from the fund's returns when oil prices rose in the first quarter of 2003. However, we believe that the fund's energy holdings will help returns as economic conditions improve. We remained underweight in stocks of financial firms--particularly in the banking sector, where prices were especially unattractive versus the prospects for company earnings. At the end of the period the fund was overweighted in transportation stocks and slightly overweighted in the energy sector. ____________________ 1 (C)2003 by Morningstar, Inc. All rights reserved. This information contained herein is the proprietary information of Morningstar, Inc., may not be copied or redistributed for any purpose and may only used for noncommercial, personal purposes. The information contained herein is not represented or warranted to be accurate, correct, complete or timely. Morningstar, Inc. shall not be responsible for investment decisions, damages or other losses resulting from the use of this information. Past performance is no guarantee of future performance. Morningstar, Inc. has not granted consent for it to be considered or deemed an "expert" under the Securities Act of 1933. 2 Holdings are disclosed as of April 30, 2003, and are subject to change. 30 TOP 10 HOLDINGS AS OF 4/30/03 (%) Invacare 1.7 Albany International 1.4 ADVO 1.2 ProQuest 1.2 Benchmark Electronics 1.1 Thoratec 1.1 Rent-A-Center 1.0 Unifirst 1.0 Chicago Bridge & Iron 1.0 Delta & Pine Land 1.0 Holdings are calculated as a percentage of net assets. Because the fund is actively managed, there is no guarantee the fund will maintain these holdings in the future. SMALL-CAP SECTOR SET TO LEAD Continued gains for small-cap stocks, like the market as a whole, are likely to depend on further improvements in the economic outlook and corporate earnings. Because stock prices have recently rallied strongly, they may be more vulnerable to disappointing earnings reports for the second quarter of 2003. An improving outlook should be particularly beneficial to the small-cap sector, which has traditionally led in market advances during economic recoveries. Although the value-oriented sector typically lags in recoveries, we believe the strong gains enjoyed recently by growth stocks make the growth sector more vulnerable to further economic uncertainty. /s/ Peter Larson PETER LARSON HAS MANAGED THE LIBERTY SMALL CAP FUND SINCE 1992. HE HAS MANAGED SMALL COMPANY PORTFOLIOS FOR COLUMBIA MANAGEMENT ADVISORS, INC. AND ITS PREDECESSORS SINCE 1963. An investment in the fund offers the potential for long-term growth, but also involves certain risks, including stock market fluctuations due to economic and business developments. Investing in small-cap stocks may present special risks, including possible illiquidity and greater price volatility than stocks of larger, more established companies. 31 PORTFOLIO REVIEWS NET ASSET VALUE PER SHARE AS OF 4/30/03 ($) Class A 11.66 Class B 11.01 Class C 11.01 Class G 10.99 Class T 11.65 Class Z 12.27 LIBERTY SMALL COMPANY EQUITY FUND BY WILLIAM GARRISON PORTFOLIO MANAGER For the six-month period that ended April 30, 2003, class A shares of Liberty Small Company Equity Fund returned 3.83% without sales charge. Over the same period, the Russell 2000 Index returned 7.55% while the Morningstar(R) Small Company Growth Category returned 4.80%.1 The fund trailed its market benchmark and peer group largely because stocks that we do not typically include in the portfolio--lower-priced, lower-quality stocks in the small-cap sector--were the period's strongest performers. Many of these better-performing stocks came from the micro-cap area, which represents the smallest companies in the small-cap sector. Micro-caps became particularly attractive when the economic outlook appeared to be improving and investors were will- Pie Chart: Sector breakdown as of April 30, 2003 (%) Consumer staples: 1.8 Other assets & liabilities: 3.5 Health care: 21.4 Information technology: 20.4 Consumer discretionary: 11.9 Industrials: 14.9 Energy: 12.3 Financials: 10.7 Materials: 3.1 Sector breakdowns are calculated as a percentage of net assets. Because the fund is actively managed, there is no guarantee the fund will maintain these sector breakdowns in the future. ing to take on higher risk. Fund returns were also diminished by holdings in companies whose earnings failed to meet investor expectations, such as Cerner Corporation, Accredo Health and Noven Pharmaceuticals in the health care group and Mothers Work in the consumer discretionary group (0.3%, 0.6%, 0.5% and 0.8% of net assets, respectively).2 AN EMPHASIS ON QUALITY Overall, we continued to emphasize investments in companies with healthy balance sheets, attractive business models and strong management teams, as we believe these characteristics have the potential to lead to long-term outperformance. Many of these higher-quality investments enjoyed above-average returns during the period as they gained investor recognition. For example, in the technology group, top performers included webMethods, an Internet software and services firm with a leading industry share; DSP Group, a semiconductor firm with continued penetration in the telecommunications market; and Intersil, a semiconductor firm with a leading market position in wireless networks (0.8%, 0.8% and 1.4% of net assets, respectively). Other strong performers included Maverick Tube Corporation, an oil services company that benefited from an expected uptick in oil and gas drilling, and Ilex Oncology, a biotech firm whose latest product began to gain increased market acceptance (1.4% and 0.5% of net assets, respectively). A SHIFT TOWARD ENERGY During the reporting period we increased the fund's position in the energy sector, which made it the portfolio's largest industry overweighting. We believe that the energy sector has the potential to benefit from a favorable balance between energy demand and supply. We also increased the fund's weighting in technology stocks, due in part to the sector's strong relative returns and also the addition of certain new investments such as Avocent, Plexus Corp. and Borland Software Corp. (0.9%, 0.8% and 0.8% of net assets, respectively). We maintained the fund's overweight in the health care group. We continue to believe that numerous companies exist in the sector with the potential to continue to achieve rapid profitable growth in any economic environment. ________________ 1 (C)2003 by Morningstar, Inc. All rights reserved. This information contained herein is the proprietary information of Morningstar, Inc., may not be copied or redistributed for any purpose and may only used for noncommercial, personal purposes. The information contained herein is not represented or warranted to be accurate, correct, complete or timely. Morningstar, Inc. shall not be responsible for investment decisions, damages or other losses resulting from the use of this information. Past performance is no guarantee of future performance. Morningstar, Inc. has not granted consent for it to be considered or deemed an "expert" under the Securities Act of 1933. 2 Holdings are disclosed as of April 30, 2003, and are subject to change. 32 TOP 10 HOLDINGS AS OF 4/30/03 (%) Jarden 1.5 Protein Design Labs 1.5 Maverick Tube 1.4 Integra LifeSciences 1.4 Beazer Homes USA 1.4 Intersil 1.4 PETCO Animal Supplies 1.4 Entegris 1.4 Performance Food Group 1.4 Sylvan Learning Systems 1.4 Holdings are calculated as a percentage of net assets. Because the fund is actively managed, there is no guarantee the fund will maintain these holdings in the future. The financial sector, which we felt had few higher-growth opportunities, represented the fund's largest underweighting, relative to its benchmark, at the end of the period. The fund was also underweight in consumer discretionary stocks, which we reduced because of concerns that consumer spending could slow if an economic recovery is further delayed. FOCUSING ON INDIVIDUAL ISSUES We believe that efforts to stimulate the economy have the potential to benefit the small-cap sector, and specifically the small-cap growth sector, in months to come. Historically, both of these segments have led the stock market's advance in economic recoveries. With valuations for large-cap stocks and small-cap stocks now more in line with each other, we believe investors will focus increasingly on the specific merits of individual issues. We expect returns to benefit from our continued emphasis on companies with strong management, healthy balance sheets and competitive market positions. Over the past six months, we trimmed the number of stocks in the portfolio, a strategy which has allowed us to accumulate bigger positions in holdings where we have the most confidence. During the period ahead, we expect to look for opportunities to add to our investments in the consumer discretionary group, which could benefit if renewed confidence in the economy encourages greater consumer spending. Once there is more evidence that the earnings of technology firms are back on track, we may also increase the portfolio's technology weighting. /s/ William Garrison WILLIAM GARRISON BECAME PORTFOLIO MANAGER OF LIBERTY SMALL COMPANY EQUITY FUND IN JUNE OF 2002. HE HAS MANAGED SMALL COMPANY PORTFOLIOS FOR COLUMBIA MANAGEMENT ADVISORS, INC. AND ITS PREDECESSORS SINCE 1998. An investment in the fund offers the potential for long-term growth, but also involves certain risks, including stock market fluctuations due to economic and business developments. Investing in small-cap stocks may present special risks, including possible illiquidity and greater price volatility than stocks of larger, more established companies. 33 PORTFOLIO REVIEWS NET ASSET VALUE PER SHARE AS OF 4/30/03 ($) Class A 8.53 Class B 8.36 Class C 8.35 Class G 8.34 Class T 8.53 Class Z 8.54 DISTRIBUTIONS DECLARED PER SHARE 11/1/02 - 4/30/03 ($) Class A 0.04 Class B 0.02 Class C 0.02 Class G 0.02 Class T 0.05 Class Z 0.07 LIBERTY STRATEGIC EQUITY FUND By Scott Davis and Greg Miller Portfolio Managers For the six-month period ended April 30, 2003, class A shares of Liberty Strategic Equity Fund returned 0.49% without a sales charge. That was less than the S&P 500 Index, which returned 4.47%, and the Morningstar(R) Large Value Funds Category, which returned 4.28% for the same period.1 Weak returns from holdings in the consumer staples, consumer discretionary and telecommunications sectors caused the fund to underperform its market benchmark and peer group. CONSUMER AND TELECOMMUNICATIONS DISAPPOINTMENTS During the period, investors favored stocks with cheap valuations that could also deliver on earnings. Stocks that missed expectations declined sharply. An overweighting in the con- Pie Chart: Sector breakdown as of April 30, 2003 (%) Information technology: 3.7 Other assets & liabilities: 0.5 Financials: 26.0 Energy: 12.6 Health care: 11.6 Telecommunication services: 9.3 Industrials: 9.0 Utilities: 8.0 Consumer staples: 7.5 Consumer discretionary: 7.5 Materials: 4.3 Sector breakdowns are calculated as a percentage of net assets. Because the fund is actively managed, there is no guarantee the fund will maintain these sector breakdowns in the future. sumer staples group along with poor performance by three large holdings in the sector were especially damaging to fund returns: ConAgra Foods, Sara Lee Corp. and Safeway (2.8%, 1.8% and 1.5% of net assets, respectively).2 All three reported poor earnings. The fund was also overweighted versus its market benchmark in the telecommunications group, which underper-formed as a whole. Consumer discretionary stocks suffered because of concerns that consumer spending would slow. Although the fund was underweighted in this area, our holdings performed poorly, including Delphi Corp., Office Depot, McDonald's Corp. and Interpublic Group of Cos. (1.6%, 1.3%, 2.6% and 1.1% of net assets, respectively). Good returns and a sizable weighting in the health care group, which did well as industry profit margins improved, helped to offset these negatives. The fund also benefited from a sizable weighting in financial firms such as Bank of America (1.6% of net assets). With strong balance sheets that included significant cash and strongly performing fixed-income assets, the financial group weathered the heightened credit risk of a weak economy better than investors expected. INCREASED WEIGHTINGS IN UTILITY AND ENERGY Our decision to increase the fund's stake in the utilities industry helped performance as well. We believed that the group was priced attractively in the aftermath of the collapse of Enron, reflecting ongoing deregulation concerns. We added TXU Corp, American Electric Power and Duke Energy Corp. (1.0%, 1.2%, and 1.5% of net assets, respectively). All three stocks performed well during the period. Our utilities holdings, which are now overweighted relative to the index, also increased the fund's dividend yield. During the period, we also added to energy stocks. As investors anticipated lower oil prices following an end to the war with Iraq, energy share prices became attractive. We increased our stake in ConocoPhillips and Baker Hughes (2.5% and 1.0% of net assets, respectively). We also maintained an investment in Exxon Mobil Corp. (2.3% of net assets). __________________ 1 (C)2003 by Morningstar, Inc. All rights reserved. This information contained herein is the proprietary information of Morningstar, Inc., may not be copied or redistributed for any purpose and may only used for noncommercial, personal purposes. The information contained herein is not represented or warranted to be accurate, correct, complete or timely. Morningstar, Inc. shall not be responsible for investment decisions, damages or other losses resulting from the use of this information. Past performance is no guarantee of future performance. Morningstar, Inc. has not granted consent for it to be considered or deemed an "expert" under the Securities Act of 1933. 2 Holdings are disclosed as of April 30, 2003, and are subject to change. 34 TOP 10 HOLDINGS AS OF 4/30/03 (%) Citigroup 4.3 Verizon Communications 4.0 Merck & Co. 3.8 SBC Communications 3.2 Aetna 3.0 American International Group 3.0 Fannie Mae 3.0 Equity Office Properties 2.9 ConAgra Foods 2.8 US Bancorp 2.7 Holdings are calculated as a percentage of net assets. Because the fund is actively managed, there can be no guarantee the fund will continue to maintain these holdings in the future. FOCUS ON INDIVIDUAL ISSUES Over the past six months, we believe that investors have begun to focus more on the earnings performance and business outlooks of individual companies than the relative prospects of different industry groups. As a result, we plan to pay especially close attention to the specific merits of stocks we hold or intend to buy. At the same time, we will continue to emphasize companies whose overall business potential is as attractive as the prices of their shares. /s/ Scott Schermerhorn /s/ Gregory M. Miller PRIOR TO APRIL 29, 2003, SCOTT SCHERMERHORN AND SCOTT L. DAVIS CO-MANAGED LIBERTY STRATEGIC EQUITY FUND. EFFECTIVE APRIL 29, 2003, GREGORY M. MILLER REPLACED MR. SCHERMERHORN AS THE FUND'S CO-MANAGER. SCOTT L. DAVIS IS A VICE PRESIDENT OF COLUMBIA MANAGEMENT ADVISORS, INC. (COLUMBIA MANAGEMENT). GREGORY M. MILLER IS A SENIOR VICE PRESIDENT OF COLUMBIA MANAGEMENT. MR. DAVIS AND MR. MILLER HAVE BEEN WITH THE FIRM AND ITS PREDECESSORS SINCE 1985. An investment in the fund offers the potential for long-term growth, but also involves certain risks, including stock market fluctuations due to economic and business developments. 35 LIBERTY ASSET ALLOCATION FUND PORTFOLIO OF INVESTMENTS APRIL 30, 2003 (UNAUDITED) SHARES VALUE ------ ----- COMMON STOCKS - 62.36% CONSUMER DISCRETIONARY - 10.21% AUTO COMPONENTS - 0.62% 1,600 BorgWarner, Inc. $ 93,872 192,100 Delphi Corp. 1,613,640 11,600 Denso Corp. 165,603 2,700 FCC Co., Ltd. 63,487 8,350 Gentex Corp.* 252,170 1,500 Johnson Controls, Inc. 123,360 3,600 Lear Corp.* 143,064 2,700 Modine Manufacturing Co. 54,540 54,600 Nissan Shatai Co., Ltd. 163,231 5,000 Standard Motor Products, Inc. 57,750 3,600 Superior Industries International, Inc. 142,416 1 Visteon Corp. 7 ------------- 2,873,140 ------------- AUTOMOBILES - 0.10% 7,500 Honda Motor Co., Ltd. 248,782 2,900 Monaco Coach Corp.* 39,208 23,000 Nissan Motor Co., Ltd. 176,730 ------------- 464,720 ------------- DISTRIBUTORS - 0.03% 6,800 Handleman Co.* 115,260 ------------- HOTELS, RESTAURANTS & LEISURE - 1.47% 7,100 Applebee's International, Inc. 194,540 10,800 Bally Total Fitness Holding Corp.* 68,580 10,500 Brinker International, Inc.* 333,375 23,700 Carnival Corp. 653,883 3,000 CBRL Group, Inc. 95,640 11,100 Darden Restaurants, Inc. 194,361 2,700 Harrah's Entertainment, Inc.* 106,353 14,250 Hilton Hotels Corp. 189,810 1,800 International Game Technology* 155,340 5,000 Landry's Restaurants, Inc. 93,500 5,700 Lone Star Steakhouse & Saloon, Inc. 119,529 1,800 Marriott International, Inc., Class A 64,638 162,900 McDonald's Corp. 2,785,590 950 Outback Steakhouse, Inc. 33,953 8,100 Prime Hospitality Corp.* 53,946 2,500 Red Robin Gourmet Burgers, Inc.* 38,225 19,600 Scientific Games Corp., Class A* 127,792 15,800 Six Flags, Inc.* 92,904 11,200 Starwood Hotels & Resorts Worldwide, Inc. 300,608 3,200 Station Casinos, Inc.* 69,152 16,850 Wendy's International, Inc. 489,324 20,700 Yum! Brands, Inc.* 511,290 ------------- 6,772,333 ------------- SHARES VALUE ------ ----- HOUSEHOLD DURABLES - 0.82% 4,900 American Greetings Corp., Class A* $ 71,344 5,400 Bassett Furniture Industries, Inc. 66,366 3,600 Beazer Homes USA, Inc.* 252,900 2,600 Blyth, Inc. 68,588 1,300 Harman International Industries, Inc. 86,567 6,800 Kimball International, Inc., Class B 108,732 22,860 Koninklijke Philips Electronics NV 426,081 1,715,200 Land & House Public Co., Ltd. 296,311 49,000 Matsushita Electric Industrial Co., Ltd. 390,914 105,600 Matsushita Electric Industrial Co., Ltd., ADR 838,464 21,650 Newell Rubbermaid, Inc. 659,892 20,500 Pioneer Corp. 411,446 1,000 Russ Berrie & Co., Inc. 32,880 2,400 Toro Co 89,544 ------------- 3,800,029 ------------- INTERNET & CATALOG RETAIL - 0.18% 4,500 Belluna Co., Ltd. 164,763 6,600 eBay, Inc. * 612,282 2,100 USA Interactive * 62,895 ------------- 839,940 ------------- LEISURE EQUIPMENT & PRODUCTS - 0.06% 6,600 Jakks Pacific, Inc.* 85,800 3,200 Johnson Outdoors, Inc., Class A* 32,704 8,050 Mattel, Inc. 175,007 ------------- 293,511 ------------- MEDIA - 2.87% 10,900 Alliance Atlantis Communications, Inc., Class B* 99,299 106,750 AOL Time Warner, Inc.* 1,460,340 39,400 BEC World Plc 189,481 39,089 British Sky Broadcasting Plc* 405,473 29,500 Clear Channel Communications, Inc.* 1,153,745 1 Comcast Corp., Class A* 32 61,980 Comcast Corp., Special Class A* 1,863,119 9,950 Cox Radio, Inc., Class A* 226,960 6,200 Gray Television, Inc. 68,510 9,050 Hispanic Broadcasting Corp.* 232,132 99,200 Interpublic Group of Cos., Inc.* 1,130,880 25,000 JC Decaux SA* 241,789 3,800 Knight-Ridder, Inc. 245,290 2,600 Liberty Corp. 114,842 106,500 Liberty Media Corp., Class A* 1,171,500 4,600 Lin TV Corp., Class A* 109,986 7,000 Mediacom Communications Corp.* 69,930 2,900 New York Times Co., Class A 134,502 17,650 Omnicom Group, Inc. 1,092,535 57,600 Pearson Plc 480,479 14,850 Radio One, Inc.* 227,205 42,000 Reed Elsevier Plc 335,234 9,000 Regent Communications, Inc.* 53,910 See Notes to Financial Statements. 36 LIBERTY ASSET ALLOCATION FUND PORTFOLIO OF INVESTMENTS (CONTINUED) APRIL 30, 2003 (UNAUDITED) SHARES VALUE ------ ----- MEDIA (CONTINUED) 1,950 Univision Communications, Inc., Class A* $ 59,046 37,500 Viacom, Inc., Class B* 1,627,875 10,190 VNU NV 296,230 5,050 Westwood One, Inc.* 176,245 ------------- 13,266,569 ------------- MULTI-LINE RETAIL - 1.75% 8,600 Aeon Co., Ltd. 195,717 3,300 Dollar Tree Stores, Inc.* 83,985 2,300 Don Quijote Co., Ltd. 209,179 4,150 Family Dollar Stores 141,888 6,600 Federated Department Stores, Inc. 202,092 32,550 Kohl's Corp.* 1,848,840 17,000 Marui Co., Ltd. 141,762 3,000 Neiman-Marcus Group, Inc., Class A* 96,150 4,700 ShopKo Stores, Inc.* 56,541 44,600 Target Corp. 1,491,424 162,000 Wal-Mart de Mexico SA de CV 447,709 56,250 Wal-Mart Stores, Inc. 3,168,000 ------------- 8,083,287 ------------- SPECIALTY RETAIL - 2.06% 4,300 Advance Auto Parts* 213,882 28,200 Bed Bath & Beyond, Inc.* 1,114,181 5,600 Borders Group, Inc.* 89,600 2,900 Building Material Holding Corp. 35,989 11,600 Casual Male Retail Group, Inc.* 51,388 3,050 CDW Computer Centers, Inc.* 130,052 3,600 Cost Plus, Inc.* 110,628 4,800 Dress Barn, Inc.* 72,096 5,100 Friedman's, Inc., Class A 58,650 10,600 Goody's Family Clothing, Inc.* 52,152 6,400 GTSI Corp.* 54,848 110,812 Kingfisher Plc 433,375 41,250 Lowe's Cos, Inc. 1,810,463 4,500 Monro Muffler, Inc.* 100,800 5,300 Mothers Work, Inc.* 132,977 4,700 Movie Gallery, Inc.* 86,908 23,020 Next, Inc. Plc 347,412 177,300 Office Depot, Inc.* 2,244,618 7,600 OfficeMax, Inc.* 42,940 10,600 PETCO Animal Supplies, Inc.* 223,978 2,300 Ross Stores, Inc. 87,170 4,200 Shimamura Co., Ltd. 232,785 50,050 Staples, Inc.* 952,952 5,700 TBC Corp.* 91,200 10,500 TJX Cos, Inc. 202,125 5,200 Too, Inc.* 96,512 3,500 United Rentals, Inc.* 36,050 2,400 Urban Outfitters, Inc.* 71,568 9,650 Williams-Sonoma, Inc.* 249,742 2,900 Zale Corp.* 101,326 ------------- 9,528,367 ------------- SHARES VALUE ------ ----- TEXTILES & APPAREL - 0.25% 2,500 Delta Apparel, Inc. $ 40,000 4,400 Kellwood Co. 130,328 3,700 LVMH Moet Hennessy Louis Vuitton SA 161,756 7,000 Maxwell Shoe Co., Inc., Class A* 85,190 4,600 Nautica Enterprises, Inc.* 52,348 1,000 Phillips-Van Heusen Corp. 13,280 4,100 Puma AG Rudolf Dassler Sport 394,426 3,600 Russell Corp. 68,832 4,200 Stride Rite Corp. 37,002 13,400 Tommy Hilfiger Corp.* 110,148 3,500 Wolverine World Wide, Inc. 64,540 ------------- 1,157,850 ------------- CONSUMER STAPLES - 5.29% BEVERAGES - 1.26% 9,350 Anheuser-Busch Cos, Inc. 466,378 49,700 Coca-Cola Co. 2,007,880 29,900 Diageo Plc 331,916 117,378 Foster's Group, Ltd. 329,316 5,330 Heineken NV 198,272 5,200 Pepsi Bottling Group, Inc. 106,808 50,150 PepsiCo, Inc. 2,170,492 2,625 Pernod-Ricard SA 230,839 ------------- 5,841,901 ------------- FOOD & DRUG RETAILING - 0.83% 4,700 Carrefour SA 204,790 3,900 Longs Drug Stores Corp. 60,411 5,700 Performance Food Group Co.* 199,956 107,700 Safeway, Inc.* 1,789,974 11,000 Seven-Eleven Japan Co., Ltd. 262,345 23,500 Sysco Corp. 675,155 21,400 Walgreen Co. 660,404 ------------- 3,853,035 ------------- FOOD PRODUCTS - 1.80% 1,500 American Italian Pasta Co., Class A* 66,150 51,800 Archer-Daniels-Midland Co. 573,944 3,600 Central Garden and Pet Co.* 87,228 115,200 ConAgra Foods, Inc. 2,419,200 5,000 Corn Products International, Inc. 149,400 7,000 Dean Foods Co.* 304,710 1,500 Hormel Foods Corp. 34,515 41,800 Kraft Foods, Inc. 1,291,620 1,515 Nestle SA, Registered Shares 309,206 5,400 Ralcorp Holdings, Inc.* 134,460 110,800 Sara Lee Corp. 1,859,224 7,700 Unilever NV 485,999 8,800 Wrigley (W.M.) Jr. Co. 499,048 9,000 Yakult Honsha Co., Ltd. 132,264 ------------- 8,346,968 ------------- See Notes to Financial Statements. 37 LIBERTY ASSET ALLOCATION FUND PORTFOLIO OF INVESTMENTS (CONTINUED) APRIL 30, 2003 (UNAUDITED) SHARES VALUE ------ ----- HOUSEHOLD PRODUCTS - 0.47% 6,800 Dial Corp. $ 141,644 15,900 Procter & Gamble Co. 1,428,615 25,050 Reckitt Benckiser Plc 442,158 823,100 Srithai Superware Co., Ltd.* 149,882 ------------- 2,162,299 ------------- PERSONAL PRODUCTS - 0.59% 18,050 Alberto-Culver Co., Class B 889,504 3,600 Avon Products, Inc. 209,412 41,450 Gillette Co. 1,262,152 3,300 Inter Parfums, Inc. 23,265 4,591 L'Oreal SA 328,781 ------------- 2,713,114 ------------- TOBACCO - 0.34% 34,300 Altria Group, Inc. 1,055,068 24,175 Imperial Tobacco Group Plc 404,866 1,500 Schweitzer-Mauduit International, Inc. 32,835 2,000 Universal Corp. - VA 78,100 ------------- 1,570,869 ------------- ENERGY - 4.90% ENERGY EQUIPMENT & SERVICES - 1.71% 33,600 Baker Hughes, Inc. 940,800 26,800 BJ Services Co.* 978,467 4,500 CAL Dive International, Inc.* 72,450 2,600 Diamond Offshore Drilling, Inc. 48,464 71,600 Halliburton Co. 1,532,956 19,200 Key Energy Services, Inc.* 193,344 4,100 Lufkin Industries, Inc. 90,938 8,500 Matrix Service Co.* 107,865 13,700 Maverick Tube Corp.* 243,723 21,600 Nabors Industries, Ltd.* 846,720 5,900 National-Oilwell, Inc.* 123,841 28,950 Noble Corp.* 896,003 18,000 Patterson-UTI Energy, Inc.* 595,619 8,600 Rowan Cos, Inc.* 176,300 17,600 Superior Energy Services* 159,280 26,100 Transocean, Inc.* 497,205 8,800 Unit Corp.* 172,480 4,300 Universal Compression Holdings, Inc.* 78,002 1,600 Weatherford International Ltd* 64,368 11,200 Willbros Group, Inc.* 92,960 ------------- 7,911,785 ------------- OIL & GAS - 3.19% 3,400 Amerada Hess Corp. 153,510 9,500 Anadarko Petroleum Corp. 421,800 10,767 Apache Corp. 616,411 69,207 BP Plc, ADR 2,667,238 3,200 Brown (Tom), Inc.* 78,464 47,300 ConocoPhillips 2,379,190 SHARES VALUE ------ ----- OIL & GAS (CONTINUED) 26,100 El Paso Corp.* $ 195,750 34,000 ENI-Ente Nazionale Idrocarburi SpA 485,457 3,900 Evergreen Resources, Inc.* 185,445 63,700 Exxon Mobil Corp. 2,242,240 10,700 Frontier Oil Corp. 181,044 17,300 Harvest Natural Resources, Inc.* 88,230 71,400 Marathon Oil Corp. 1,625,778 2,100 Occidental Petroleum Corp. 62,685 4,400 Patina Oil & Gas Corp. 151,932 1,100 Pogo Producing Co. 43,560 4,100 Premcor, Inc.* 91,389 4,100 Remington Oil & Gas Corp.* 64,247 45,000 Royal Dutch Petroleum Co. - NY Shares 1,839,600 6,700 Spinnaker Exploration Co.* 143,380 4,600 St. Mary Land & Exploration Co. 117,852 1,179 Total SA 154,893 4,700 Ultra Petroleum Corp.* 47,000 4,400 Valero Energy Corp. 161,700 9,900 Vintage Petroleum, Inc. 96,822 5,200 Westport Resources Corp.* 108,368 19,099 XTO Energy, Inc. 372,431 ------------- 14,776,416 ------------- FINANCIALS - 11.58% BANKS - 2.14% 5,300 Accredited Home Lenders Holding Co.* 57,240 600 BancFirst Corp. 29,898 4,220 Banco Popular Espanol SA 204,967 20,900 Banco Santander Central Hispano SA 164,513 5,100 BancorpSouth, Inc. 102,510 4,500 Bank of Granite Corp. 78,120 30,690 Bank of Ireland 379,175 43,400 Bank of New York Co., Inc. 1,147,930 4,500 Banknorth Group, Inc. 107,460 50,900 Barclays Plc 351,925 4,600 Boston Private Financial Holdings, Inc. 86,710 2,800 Bryn Mawr Bank Corp. 100,100 1,800 Capitol Bancorp Ltd 38,234 3,800 Charter One Financial, Inc. 110,390 4,145 Chemical Financial Corp. 122,070 5,200 Chittenden Corp. 140,660 2,600 City National Corp. 107,042 3,700 Community First Bankshares, Inc. 99,608 2,400 Community Trust Bancorp, Inc. 64,608 2,200 Corus Bankshares, Inc. 94,842 6,500 Credit Agricole SA 119,844 1,900 Credit Lyonnais SA 118,010 1,700 Cullen/Frost Bankers, Inc. 55,743 23,100 Danske Bank A/S 445,147 8,300 Dime Community Bancshares 191,398 4,400 East West Bancorp, Inc. 148,940 16,000 Fifth Third Bancorp 788,640 700 First Citizens BancShares, Inc., Class A 68,082 1,800 First Financial Bankshares, Inc. 72,034 4,200 Golden West Financial Corp. 316,764 2,900 Greenpoint Financial Corp. 138,504 See Notes to Financial Statements. 38 LIBERTY ASSET ALLOCATION FUND PORTFOLIO OF INVESTMENTS (CONTINUED) APRIL 30, 2003 (UNAUDITED) SHARES VALUE ------ ----- BANKS (CONTINUED) 205,000 Grupo Financiero BBVA Bancomer, Class B* $ 177,915 1,000 Hancock Holding Co. 45,250 1,810 MainSource Financial Group, Inc. 43,748 1,500 MASSBANK Corp. 46,243 3,400 Merchants Bancshares, Inc. 79,390 6,500 Mid-State Bancshares 119,600 4,300 North Fork Bancorporation, Inc. 139,148 3,000 Northrim BanCorp., Inc. 45,300 1,000 Omega Financial Corp. 35,030 5,800 Prosperity Bancshares, Inc. 102,196 7,000 Riggs National Corp. 96,880 26,587 Royal Bank of Scotland Group Plc 697,872 298,200 Siam Commercial Bank Public Co., Ltd. Registered* 238,435 1,600 Simmons First National Corp., Class A 60,224 9,800 Sovereign Bancorp, Inc. 151,410 35,080 Standard Chartered Plc 391,663 4,600 Trico Bancshares 112,838 5,330 UBS AG, Registered Shares 253,173 5,600 UCBH Holdings, Inc. 142,464 121,500 UniCredito Italiano SpA 532,529 5,100 W Holding Co., Inc. 100,419 5,100 Webster Financial Corp. 191,454 1,600 Whitney Holding Corp. 54,048 ------------- 9,908,337 ------------- DIVERSIFIED FINANCIALS - 5.13% 1,700 Bear Stearns Cos, Inc. 113,628 13,400 Cash America International, Inc. 137,484 193,350 Citigroup, Inc. 7,588,987 3,000 CompuCredit Corp.* 22,710 20,900 Fannie Mae 1,512,951 27,801 Freddie Mac 1,609,678 13,250 Goldman Sachs Group, Inc. 1,005,675 10,200 ING Groep NV 165,937 7,300 Investors Financial Services Corp. 159,213 11,400 Janus Capital Group, Inc. 158,460 3,000 Jefferies Group, Inc. 116,460 87,200 J.P. Morgan Chase & Co. 2,559,320 1,200 Legg Mason, Inc. 65,160 1,900 Lehman Brothers Holdings, Inc. 119,643 13,300 Metris Cos, Inc.* 48,013 10,900 MFC Bancorp, Ltd. 90,143 1,550 Moody's Corp. 74,849 3,700 MTC Technologies, Inc.* 62,900 18,000 Nomura Holdings, Inc. 178,519 5,200 SLM Corp. 582,400 80,000 SPDR Trust Series 1 7,352,800 ------------- 23,724,930 ------------- INSURANCE - 3.31% 27,500 AMBAC Financial Group, Inc. 1,604,625 70,400 American International Group, Inc. 4,079,680 2,000 AmerUs Group Co. 52,380 SHARES VALUE ------ ----- INSURANCE (CONTINUED) 57 Berkshire Hathaway, Inc., Class A* $ 3,979,458 1,900 Brown & Brown, Inc. 67,963 1,500 Cincinnati Financial Corp. 55,275 2,200 Commerce Group, Inc. 81,532 2,900 Converium Holding AG 131,113 3,300 Delphi Financial Group, Inc., Class A 145,365 4,150 Gallagher (Arthur J.) & Co. 103,709 4,600 Hilb Rogal & Hamilton Co. 163,530 19,200 Irish Life & Permanent Plc 223,262 600 Kansas City Life Insurance Co. 24,408 48,000 Lincoln National Corp. 1,534,080 1,600 Loew's Corp. 66,032 9,600 Marsh & McLennan Cos, Inc. 457,728 17,300 MGIC Investment Corp. 786,458 2,300 Nationwide Financial Services, Inc., Class A 64,745 1,400 Navigators Group, Inc.* 37,590 3,800 Philadelphia Consolidated Holding Co.*. 148,238 10,500 Phoenix Cos, Inc. 82,950 5,500 PMI Group, Inc. 169,510 3,600 Radian Group, Inc. 142,920 3,500 RLI Corp. 103,425 20,300 St. Paul Cos, Inc. 697,102 3,900 Stancorp Financial Group, Inc. 209,430 3,700 State Auto Financial Corp. 69,560 5,200 Universal American Financial Corp.* 30,316 ------------- 15,312,384 ------------- REAL ESTATE - 1.00% 4,050 Alexandria Real Estate Equities, Inc. REIT 171,315 2,750 Apartment Investment & Management Co., Class A REIT 103,840 3,900 Archstone-Smith Trust REIT 88,920 2,850 AvalonBay Communities, Inc. REIT 113,687 2,850 Boston Properties, Inc. REIT 111,720 1,650 CarrAmerica Realty Corp. REIT 43,032 2,200 Catellus Development Corp.* 46,596 1,600 Centerpoint Properties Trust REIT 92,720 2,400 Chelsea Property Group, Inc. REIT 95,184 9,450 Cousins Properties, Inc. REIT 248,157 3,500 Eastgroup Properties REIT 90,930 5,400 Equity Office Properties Trust REIT 140,238 5,700 Equity One, Inc. REIT 90,573 3,700 Equity Residential REIT 95,867 1,650 First Industrial Realty Trust, Inc. REIT 46,134 5,650 General Growth Properties, Inc. REIT 314,253 3,400 Getty Realty Corp. REIT 67,626 9,300 iStar Financial, Inc. REIT 278,349 3,500 Keystone Property Trust REIT 60,200 4,500 Kimco Realty Corp. REIT 162,900 2,400 Liberty Property Trust REIT 75,096 600 Manufactured Home Communities, Inc. REIT 19,224 3,600 Mid-America Apartment Communities, Inc. REIT 92,520 48,000 Mitsubishi Estate Co., Ltd. 281,357 See Notes to Financial Statements. 39 LIBERTY ASSET ALLOCATION FUND PORTFOLIO OF INVESTMENTS (CONTINUED) APRIL 30, 2003 (UNAUDITED) SHARES VALUE ------ ----- REAL ESTATE (CONTINUED) 6,200 Nationwide Health Properties, Inc. REIT $ 86,800 5,600 Newcastle Investment Corp. 97,608 1,800 Pan Pacific Retail Properties, Inc. REIT 70,416 500 Parkway Properties, Inc. REIT 19,310 1,150 Prentiss Properties Trust REIT 31,625 8,250 Prologis REIT 212,355 3,700 PS Business Parks, Inc. REIT 115,107 3,700 Public Storage, Inc. REIT 118,955 1,400 Reckson Associates Realty Corp. REIT 26,390 5,400 RFS Hotel Investors, Inc. REIT 57,996 4,600 Rouse Co. REIT 159,850 4,950 Simon Property Group, Inc. REIT 181,764 5,000 St. Joe Co. 146,500 5,550 Taubman Centers, Inc. REIT 97,180 2,900 United Dominion Realty Trust, Inc. REIT 48,401 2,200 Universal Health Rlty, Income REIT 57,530 5,000 Urstadt Biddle Properties, Inc., Class A REIT 61,000 3,250 Vornado Realty Trust REIT 123,500 ------------- 4,642,725 ------------- HEALTH CARE - 9.86% BIOTECHNOLOGY - 0.83% 43,500 Amgen, Inc.* 2,666,985 1,500 Biogen, Inc.* 56,985 7,000 BioMarin Pharmaceuticals, Inc. 76,860 3,100 Cell Genesys, Inc.* 27,652 6,700 CV Therapeutics, Inc.* 133,866 4,550 Gilead Sciences, Inc.* 209,937 5,700 Ilex Oncology, Inc.* 76,323 1,900 MedImmune, Inc.* 67,013 5,000 Millennium Pharmaceuticals, Inc.* 55,000 2,800 Neurocrine Biosciences, Inc.* 126,700 23,500 Protein Desgn Labs, Inc.* 233,355 9,800 Telik, Inc.* 128,870 ------------- 3,859,546 ------------- HEALTH CARE EQUIPMENT & SUPPLIES - 1.51% 7,400 American Medical Systems Holdings, Inc.* 117,438 17,000 Becton, Dickinson & Co. 601,800 3,700 BioLase Technology, Inc.* 41,736 8,800 Biomet, Inc. 268,048 17,300 Boston Scientific Corp.* 744,765 2,500 Hillenbrand Industries, Inc. 124,750 9,800 Integra LifeSciences Holdings Corp.* 261,562 17,700 Medical Action Industries, Inc.* 201,780 35,950 Medtronic, Inc. 1,716,253 8,700 Noven Pharmaceuticals, Inc.* 83,781 15,000 Olympus Optical Co., Ltd. 260,119 5,000 ResMed, Inc.* 183,400 2,700 Respironics, Inc.* 103,734 113,840 Smith & Nephew Plc 759,782 4,500 Sola International, Inc.* 63,045 7,300 SonoSite, Inc.* 118,260 SHARES VALUE ------ ----- HEALTH CARE EQUIPMENT & SUPPLIES (CONTINUED) 18,950 St. Jude Medical, Inc.* $ 994,117 2,300 Synovis Life Technologies, Inc.* 33,672 2,210 Varian Medical Systems, Inc.* 119,031 6,300 Wright Medical Group, Inc.* 119,574 2,500 Zoll Medical Corp.* 80,750 ------------- 6,997,397 ------------- HEALTH CARE PROVIDERS & SERVICES - 2.40% 6,800 Accredo Health, Inc.* 100,436 58,700 Aetna, Inc. 2,923,260 3,400 American Healthways, Inc.* 83,946 4,500 AmerisourceBergen Corp. 260,325 9,350 Anthem, Inc.* 641,784 28,050 Cardinal Health, Inc. 1,550,604 20,050 Caremark Rx, Inc.* 399,195 2,600 Cerner Corp.* 51,948 6,300 Cobalt Corp.* 103,635 5,200 Community Health Systems, Inc.* 98,800 3,500 DaVita, Inc.* 72,170 11,000 First Health Group Corp.* 275,550 5,700 Genesis Health Ventures, Inc.* 85,272 5,900 HCA, Inc. 189,390 12,400 Hooper Holmes, Inc. 75,020 6,900 Humana, Inc.* 76,245 2,600 Kindred Healthcare, Inc.* 38,740 3,900 Laboratory Corporation of America Holdings* 114,894 10,000 LifePoint Hospitals, Inc.* 195,200 3,100 Lincare Holdings, Inc.* 94,147 4,200 Odyssey HealthCare, Inc.* 108,528 2,600 PacifiCare Health Systems* 82,784 2,700 Pediatrix Medical Group, Inc.* 86,049 11,300 Stewart Enterprises, Inc., Class A* 33,109 3,400 Sunrise Assisted Living, Inc.* 91,800 21,550 UnitedHealth Group, Inc. 1,985,401 17,500 US Oncology, Inc.* 125,650 4,600 WellChoice, Inc.* 97,980 14,000 WellPoint Health Networks, Inc.* 1,063,160 ------------- 11,105,022 ------------- PHARMACEUTICALS - 5.12% 25,700 Abbott Laboratories 1,044,191 6,100 Adolor Corp.* 85,339 3,800 Alpharma, Inc., Class A 70,870 8,800 Andrx Corp.* 142,032 5,400 Atrix Labs, Inc.* 94,824 5,000 Barr Laboratories, Inc.* 278,000 2,400 Biovail Corp.* 86,760 43,700 Bristol-Myers Squibb Co. 1,116,098 16,000 Chugai Pharmaceutical Co., Ltd. 167,954 17,943 CSL Ltd 175,744 11,700 Dr. Reddy's Laboratories, Ltd., ADR 221,130 17,230 GlaxoSmithKline Plc 345,605 3,500 InterMune, Inc.* 71,155 53,050 Johnson & Johnson Co. 2,989,898 See Notes to Financial Statements. 40 LIBERTY ASSET ALLOCATION FUND PORTFOLIO OF INVESTMENTS (CONTINUED) APRIL 30, 2003 (UNAUDITED) SHARES VALUE ------ ----- PHARMACEUTICALS (CONTINUED) 69,450 Merck & Co., Inc. $ 4,040,601 13,080 Novartis AG, Registered Shares 516,538 235,370 Pfizer, Inc. 7,237,628 15,500 Ranbaxy Laboratories, Ltd., GDR 241,025 6,400 Salix Pharmaceuticals Ltd* 72,128 6,009 Sanofi-Synthelabo SA 359,113 7,400 Sawai Pharmaceutical Co., Ltd. 178,972 7,100 Schering AG 317,144 4,500 SFBC International, Inc.* 70,200 6,200 SICOR, Inc.* 111,166 5,000 Takeda Chemical Industries Ltd. 183,490 5,800 Taro Pharmaceuticals Industries, Ltd.*. 265,408 35,400 Teva Pharmaceutical Industries, Ltd., ADR 1,653,180 2,800 Trimeris, Inc.* 124,292 32,450 Wyeth 1,412,548 ------------- 23,673,033 ------------- INDUSTRIALS - 6.00% AEROSPACE & DEFENSE - 1.02% 1,000 Alliant Techsystems, Inc.* 53,720 9,400 Armor Holdings, Inc.* 113,270 3,700 DRS Technologies, Inc.* 103,637 16,300 General Dynamics Corp. 1,011,741 3,800 Herley Industries, Inc.* 61,412 69,800 Honeywell International, Inc. 1,647,280 7,500 Ladish Co., Inc.* 35,692 8,100 Lockheed Martin Corp. 405,405 600 Northrop Grumman Corp. 52,770 3,100 Precision Castparts Corp. 85,839 38,800 Raytheon Co. 1,161,284 ------------- 4,732,050 ------------- AIR FREIGHT & LOGISTICS - 0.41% 2,400 CNF, Inc. 72,816 10,000 Exel Plc 95,973 12,100 FedEx Corp. 724,548 2,700 Hunt (J.B.) Transport Services, Inc.* 93,285 3,900 Ryder System, Inc. 96,876 11,400 United Parcel Service, Inc., Class B 708,168 3,100 UTI Worldwide, Inc. 93,310 ------------- 1,884,976 ------------- AIRLINES - 0.04% 8,200 AMR Corp.* 36,818 7,100 Atlantic Coast Airlines Holdings, Inc.* 59,285 5,600 Mesaba Holdings, Inc.* 34,664 5,700 Skywest, Inc. 72,903 ------------- 203,670 ------------- SHARES VALUE ------ ----- BUILDING PRODUCTS - 0.05% 3,900 NCI Building Systems, Inc.* $ 62,790 15,200 US Industries, Inc.* 72,200 6,300 Watsco, Inc. 97,587 ------------- 232,577 ------------- COMMERCIAL SERVICES & SUPPLIES - 1.75% 49,275 Amadeus Global Travel Distribution SA, Class A* 246,823 2,500 Arbitron, Inc.* 85,150 2,700 Banta Corp. 83,835 13,050 BISYS Group, Inc. * 220,284 7,600 Brink's Co. 96,900 47,831 Capita Group Plc 193,948 13,100 Casella Waste Systems, Inc., Class A* 111,612 11,400 Cendant Corp.* 162,792 13,200 Century Business Services, Inc.* 37,224 5,100 Charles River Associates, Inc.* 110,364 4,650 ChoicePoint, Inc.* 164,052 5,400 Consolidated Graphics, Inc.* 103,140 7,700 Corporate Executive Board Co* 315,623 1,600 DST Systems, Inc.* 49,120 2,900 Education Management Corp.* 141,578 6,000 Electro Rent Corp.* 59,880 65,850 First Data Corp. 2,583,296 1,900 FTI Consulting, Inc.* 85,975 9,500 Half (Robert) International, Inc.* 154,660 6,000 Imagistics International, Inc.* 129,120 4,300 Kroll, Inc.* 95,890 3,100 Manpower, Inc. 101,928 3,400 Paychex, Inc. 105,876 3,100 Republic Services, Inc.* 66,526 3,700 SOURCECORP, Inc.* 58,460 2,200 Stericycle, Inc.* 86,438 14,100 Sylvan Learning Systems, Inc.* 247,314 900 TeleTech Holdings, Inc.* 3,672 2,200 United Stationers, Inc.* 59,642 4,500 Waste Connections, Inc.* 151,380 80,700 Waste Management, Inc. 1,752,804 3,950 Weight Watchers International, Inc.* 185,571 3,300 Whitman Education Group, Inc.* 47,619 ------------- 8,098,496 ------------- CONSTRUCTION & ENGINEERING - 0.12% 12,200 Chicago Bridge & Iron Co. NV - NY Shares 244,000 11,200 Comfort Systems USA, Inc.* 22,064 3,500 EMCOR Group, Inc.* 178,745 17,500 Mastec, Inc.* 38,150 6,100 Shaw Group, Inc. * 71,065 ------------- 554,024 ------------- See Notes to Financial Statements. 41 LIBERTY ASSET ALLOCATION FUND PORTFOLIO OF INVESTMENTS (CONTINUED) APRIL 30, 2003 (UNAUDITED) SHARES VALUE ------ ----- ELECTRICAL EQUIPMENT - 0.14% 4,400 American Power Conversion Corp.* $ 68,552 1,900 Genlyte Group, Inc.* 71,668 11,800 Harris Corp. 337,008 7,500 Rayovac Corp.* 78,000 2,500 Tecumseh Products Co., Class A 100,600 ------------- 655,828 ------------- INDUSTRIAL CONGLOMERATES - 1.64% 3,950 3M Co. 497,858 5,000 Carlisle Cos, Inc. 226,800 7,800 Denbury Resources, Inc.* 82,680 118,600 General Electric Co 3,492,770 15,300 Smiths Group Plc 163,725 58,100 Textron, Inc. 1,713,369 72,200 Tyco International, Ltd. 1,126,320 19,600 Wesfarmers, Ltd. 300,725 ------------- 7,604,247 ------------- MACHINERY - 0.45% 7,300 AGCO Corp.* 132,933 2,200 Alamo Group, Inc. 25,850 1,800 Briggs & Stratton Corp. 81,252 3,900 Cuno, Inc.* 139,776 28,900 Dover Corp. 830,586 5,400 Esterline Technologies Corp.* 95,850 4,100 Harsco Corp. 141,327 3,000 Ingersoll-Rand Co., Class A 132,240 5,300 Kadant, Inc.* 86,125 2,400 Mueller Industries, Inc.* 61,320 6,000 Navistar International Corp.* 167,400 1,800 Oshkosh Truck Corp. 100,800 1,700 Parker Hannifin Corp. 69,156 ------------- 2,064,615 ------------- ROAD & RAIL - 0.11% 4,800 Covenant Transport, Inc., Class A* 87,643 7,500 Genesee & Wyoming, Inc., Class A* 129,750 4,600 Heartland Express, Inc.* 105,800 4,200 Kansas City Southern* 46,494 3,000 Old Dominion Freight Line, Inc.* 99,477 2,600 U.S. Xpress Enterprises, Inc., Class A* 24,050 ------------- 493,214 ------------- TRADING COMPANIES & DISTRIBUTORS - 0.05% 2,400 Fastenal Co. 83,016 3,650 Grainger (W.W.), Inc. 168,447 ------------- 251,463 ------------- TRANSPORTATION INFRASTRUCTURE - 0.22% 25,255 ACESA Infraestructuras SA 328,968 47,690 BAA Plc 368,445 SHARES VALUE ------ ----- TRANSPORTATION INFRASTRUCTURE (CONTINUED) 170,000 Cosco Pacific, Ltd. $ 143,864 508,000 Zhejiang Expressway Co., Ltd., Class H. 193,780 ------------- 1,035,057 ------------- INFORMATION TECHNOLOGY - 7.82% COMMUNICATIONS EQUIPMENT - 0.79% 5,700 Advanced Fibre Communication, Inc.* 87,210 7,400 Allen Telecom, Inc. 100,122 14,200 Andrew Corp.* 108,914 4,700 Avocent Corp.* 139,214 2,200 Black Box Corp. 69,850 6,600 Cable Desgn Technologies Corp.* 45,606 156,350 Cisco Systems, Inc.* 2,351,504 22,100 Extreme Networks, Inc.* 93,483 11,400 Nokia OYJ ADR 188,898 16,400 Optical Communication Products, Inc.* 18,040 8,300 QUALCOMM, Inc. 264,687 7,300 Scientific-Atlanta, Inc. 118,625 5,200 Tollgrade Communications, Inc.* 75,452 ------------- 3,661,605 ------------- COMPUTERS & PERIPHERALS - 1.28% 7,300 Applied Films Corp.* 158,775 14,300 Crossroads Systems, Inc.* 19,591 83,750 Dell Computer Corp.* 2,421,213 14,000 Dot Hill Systems Corp.* 93,800 600 Electronics for Imaging* 11,541 1,700 Hutchinson Technology, Inc.* 40,188 1,000 Imation Corp. 34,300 3,400 Intergraph Corp.* 69,360 13,950 International Business Machines Corp. 1,184,355 9,800 Iomega Corp.* 91,140 24,250 Lexmark International, Inc.* 1,806,868 ------------- 5,931,131 ------------- ELECTRONIC EQUIPMENT & INSTRUMENTS - 0.63% 3,400 Amphenol Corp., Class A* 150,586 800 Analogic Corp. 38,200 2,500 Anixter International, Inc.* 57,450 5,100 Arrow Electronics, Inc.* 86,088 7,400 AVX Corp. 78,662 1,100 Benchmark Electronics, Inc.* 28,545 44,000 Celestica, Inc.* 508,640 7,400 Itron, Inc.* 148,148 10,600 Jabil Circuit, Inc.* 198,220 880 Keyence Corp. 141,666 5,700 Littelfuse, Inc.* 111,492 3,900 Millipore Corp.* 133,185 6,000 MTS Systems Corp. 75,246 10,200 NU Horizons Electronics Corp.* 52,010 2,700 Photon Dynamics, Inc.* 59,130 9,400 Pioneer Standard Electronics, Inc. 91,086 5,800 Planar Systems, Inc.* 102,022 See Notes to Financial Statements. 42 LIBERTY ASSET ALLOCATION FUND PORTFOLIO OF INVESTMENTS (CONTINUED) APRIL 30, 2003 (UNAUDITED) SHARES VALUE ------ ----- ELECTRONIC EQUIPMENT & INSTRUMENTS (CONTINUED) 14,100 Plexus Corp.* $ 143,538 2,500 Samsung Electronics Co., Ltd. GDR, Registered Shares 312,500 22,700 Somera Communications, Inc.* 25,424 6,850 Symbol Technologies, Inc. 74,870 3,400 Tech Data Corp.* 81,600 3,000 Varian, Inc.* 94,830 10,500 Vishay Intertechnology, Inc.* 131,250 ------------- 2,924,388 ------------- INTERNET SOFTWARE & SERVICES - 0.08% 5,400 Fidelity National Information Solutions, Inc.* 94,770 9,500 Matrixone, Inc.* 33,250 20,600 SonicWALL, Inc.* 73,542 4,300 Trizetto Group* 23,220 8,900 Valueclick, Inc.* 36,045 12,600 webMethods, Inc.* 126,756 ------------- 387,583 ------------- IT CONSULTING & SERVICES - 0.52% 5,400 Acxiom Corp. 75,384 4,200 Affiliated Computer Services, Inc., Class A* 200,340 9,600 American Management Systems* 118,080 900 Computer Horizons Corp.* 3,771 87,000 Electronic Data Systems Corp. 1,579,050 10,000 Indra Sistemas SA 86,094 27,000 Management Network Group, Inc.* 32,940 21,400 MPS Group, Inc.* 144,450 3,800 Priority Healthcare Corp., Class B* 86,640 3,700 SRA International, Inc., Class A* 87,505 ------------- 2,414,254 ------------- OFFICE ELECTRONICS - 0.51% 10,000 Canon, Inc. 404,770 182,200 Xerox Corp.* 1,796,492 2,000 Zebra Technologies Corp., Class A* 133,340 ------------- 2,334,602 ------------- SEMICONDUCTOR EQUIPMENT & PRODUCTS - 1.72% 9,200 Analog Devices, Inc.* 304,704 3,200 ATMI, Inc.* 67,517 14,600 Brooks Automation, Inc.* 123,662 4,600 Cymer, Inc.* 131,330 7,300 DSP Group, Inc.* 152,570 4,000 Dupont Photomasks, Inc.* 74,360 21,400 Entegris, Inc.* 245,458 2,500 Exar Corp.* 36,875 4,900 Helix Technology Corp. 56,448 2,100 Integrated Circuit Systems, Inc.* 45,612 7,600 Integrated Device Technology, Inc.* 78,508 SHARES VALUE ------ ----- SEMICONDUCTOR EQUIPMENT & PRODUCTS (CONTINUED) 63,050 Intel Corp. $ 1,160,120 12,100 Intersil Corp., Class A* 223,850 8,800 Linear Technology Corp. 303,336 22,100 Marvell Technology Group, Ltd.* 510,046 4,900 Maxim Integrated Products, Inc. 192,521 57,270 Microchip Technology, Inc. 1,190,643 6,100 Mykrolis Corp.* 48,922 3,600 National Semiconductor Corp.* 67,428 5,000 Novellus Systems, Inc.* 140,200 5,100 Pericom Semiconductor Corp.* 43,248 91,200 PMC - Sierra, Inc.* 752,400 2,500 Rohm Co., Ltd. 258,020 8,100 Skyworks Solutions, Inc.* 43,335 47,800 Taiwan Semiconductor Manufacturing Co., Ltd., ADR* 400,086 41,600 Texas Instruments, Inc. 769,184 8,200 Tokyo Electron Ltd 307,810 12,600 Zoran Corp.* 224,154 ------------- 7,952,347 ------------- SOFTWARE - 2.29% 11,600 Activision, Inc.* 177,480 6,600 Amdocs Ltd.* 116,556 45,950 BEA Systems, Inc.* 492,125 5,900 BMC Software, Inc.* 88,028 16,900 Borland Software Corp.* 153,283 6,700 Dassault Systemes SA 193,949 12,000 Electronic Arts, Inc.* 711,239 8,500 Henry (Jack) & Associates 110,755 8,600 Intuit, Inc.* 333,508 4,150 Mercury Interactive Corp.* 140,851 190,400 Microsoft Corp. 4,868,528 5,150 Network Associates, Inc.* 58,864 20,700 Novell, Inc.* 56,925 17,750 Oracle Corp.* 210,870 9,300 Pervasive Software, Inc.* 45,663 13,400 PLATO Learning, Inc.* 62,310 4,900 Reynolds & Reynolds Co. , Class A 141,169 5,100 SafeNet, Inc.* 120,666 40,750 SAP AG, ADR 1,039,533 9,200 Secure Computing Corp.* 52,716 7,950 Siebel Systems, Inc.* 68,926 6,300 Sybase, Inc.* 80,640 21,735 Symantec Corp.* 955,253 9,900 THQ, Inc.* 139,887 7,750 Veritas Software Corp.* 170,577 ------------- 10,590,301 ------------- MATERIALS - 2.34% CHEMICALS - 0.74% 2,900 Air Products & Chemicals, Inc. 124,903 46,900 Akzo Nobel NV, ADR 1,043,525 5,500 Cytec Industries, Inc.* 176,055 3,400 Eastman Chemical Co. 103,802 See Notes to Financial Statements. 43 LIBERTY ASSET ALLOCATION FUND PORTFOLIO OF INVESTMENTS (CONTINUED) APRIL 30, 2003 (UNAUDITED) SHARES VALUE ------ ----- CHEMICALS (CONTINUED) 1,400 Ecolab, Inc. $ 71,526 3,500 Engelhard Corp. 85,925 910 Givaudan, Registered Shares 352,648 3,200 HB Fuller Co. 78,496 6,300 International Flavors & Fragrances, Inc. 200,214 1,589 L'Air Liquide SA 241,093 7,000 Lubrizol Corp. 221,270 2,000 Minerals Technologies, Inc. 88,500 1,600 PPG Industries, Inc. 77,616 2,400 Praxair, Inc. 139,392 3,800 Schulman (A.), Inc. 62,164 1,700 Scotts Co. , Class A* 96,815 9,100 Shin-Etsu Chemical Co., Ltd. 272,817 ------------- 3,436,761 ------------- CONSTRUCTION MATERIALS - 0.09% 3,500 Amcol International Corp. 21,350 2,600 Centex Construction Products, Inc. 100,490 103,000 Siam Cement Public Co., Ltd. 290,954 ------------- 412,794 ------------- CONTAINERS & PACKAGING - 0.19% 50,730 Amcor Ltd 264,006 3,400 Aptargroup, Inc. 117,028 7,200 Constar International, Inc.* 52,200 10,100 Crown Holdings, Inc.* 53,530 3,000 Greif, Inc., Class A 61,350 8,400 Jarden Corp.* 247,800 3,300 Packaging Corporation of America* 62,073 ------------- 857,987 ------------- METALS & MINING - 0.58% 68,000 Barrick Gold Corp. 1,016,600 71,999 BHP Billiton, Ltd. 407,608 300 Carpenter Technology Corp. 3,918 16,000 Nucor Corp. 653,600 8,000 Peabody Energy Corp. 224,800 15,696 Rio Tinto Plc 300,274 6,600 RTI International Metals, Inc.* 66,660 ------------- 2,673,460 ------------- PAPER & FOREST PRODUCTS - 0.74% 1,800 Boise Cascade Corp. 41,346 24,500 Bowater, Inc. 953,785 96,050 Georgia-Pacific Corp. 1,483,012 2,800 Glatfelter 32,060 7,450 MeadWestvaco Corp. 175,745 18,400 Stora Enso Oyj, Class R 200,381 5,800 Svenska Cellulosa AB, Class B 196,558 12,850 UPM-Kymmene Oyj 188,215 3,200 Weyerhaeuser Co. 158,688 ------------- 3,429,790 ------------- SHARES VALUE ------ ----- TELECOMMUNICATION SERVICES - 2.54% DIVERSIFIED TELECOMMUNICATION - 1.91% 98,400 BellSouth Corp. $ 2,508,216 8,200 Covad Communications Group, Inc.* 5,904 3,900 North Pittsburgh Systems, Inc. 53,859 1 Qwest Communications International, Inc.* 4 119,300 SBC Communications, Inc. 2,786,848 55,707 Telefonica SA 617,255 76,700 Verizon Communications, Inc. 2,867,046 ------------- 8,839,132 ------------- WIRELESS TELECOMMUNICATION SERVICES - 0.63% 117,075 AT&T Wireless Services, Inc.* 756,304 4,800 Metro One Telecommunications* 31,056 5,800 Mobile TeleSystems, ADR* 278,400 163 NTT DoCoMo, Inc. 336,732 27,815 Orange SA* 223,298 4,000 Telephone & Data Systems, Inc. 172,360 419,500 Vodafone Group Plc 828,699 14,500 Vodafone Group Plc, ADR 286,520 ------------- 2,913,369 ------------- UTILITIES - 1.82% ELECTRIC UTILITIES - 1.24% 3,100 Allete, Inc. 73,656 41,500 American Electric Power Co., Inc. 1,094,770 5,700 Central Vermont Public Service Corp. 100,833 3,900 CH Energy Group, Inc. 163,995 24,000 Consolidated Edison, Inc. 932,880 6,900 El Paso Electric Co. 78,246 2,100 Entergy Corp. 97,881 2,700 Exelon Corp. 143,208 374,000 Huaneng Power International, Inc., Class H 354,864 1,300 Maine Public Service Co. 39,650 2,300 MGE Energy, Inc. 66,445 56,600 National Grid Transco Plc 372,097 9,200 Northeast Utilities 137,264 68,900 PG&E Corp.* 1,032,122 1,700 PPL Corp. 61,540 3,600 Progress Energy, Inc. 150,408 43,000 TXU Corp. 856,560 ------------- 5,756,419 ------------- GAS UTILITIES - 0.17% 2,600 Cascade Natural Gas Corp. 49,582 68,200 Centrica Plc 181,361 146,000 Hong Kong & China Gas 172,226 1,800 Northwest Natural Gas Co. 46,494 62,300 Snam Rete Gas SpA 226,387 4,300 WGL Holdings, Inc. 116,014 ------------- 792,064 ------------- See Notes to Financial Statements. 44 LIBERTY ASSET ALLOCATION FUND PORTFOLIO OF INVESTMENTS (CONTINUED) APRIL 30, 2003 (UNAUDITED) SHARES VALUE ------ ----- MULTI-UTILITIES - 0.41% 97,700 Duke Energy Corp. $ 1,718,543 4,300 Energy East Corp. 78,346 3,200 MDU Resources Group, Inc. 95,232 ------------- 1,892,121 ------------- TOTAL COMMON STOCKS 288,605,092 ------------- (Cost $292,498,344) CONVERTIBLE PREFERRED STOCKS - 0.13% MEDIA - 0.11% 21,150 News Corp., Ltd. ADR, 4.95% 496,179 ------------- OIL & GAS - 0.02% 5,500 Exco Resources, Inc., 5.00% 98,065 ------------- TOTAL CONVERTIBLE PREFERRED STOCKS 594,244 ------------- (Cost $577,643) PAR VALUE --------- U.S. GOVERNMENT AND AGENCY OBLIGATIONS - 2.34% FEDERAL NATIONAL MORTGAGE ASSOCIATION - 0.66% $ 2,600,000 6.63%, 09/15/09 3,057,184 ------------- U.S. TREASURY NOTES - 0.38% 1,375,000 3.00%, 11/15/07 1,393,853 350,000 3.88%, 02/15/13 349,836 ------------- 1,743,689 ------------- U.S. TREASURY BONDS - 1.30% 950,000 7.50%, 11/15/16 1,251,031 420,000 8.88%, 08/15/17 617,170 1,150,000 8.13%, 08/15/19 1,613,054 850,000 7.88%, 02/15/21 1,175,191 425,000 6.13%, 08/15/29 502,297 800,000 5.38%, 02/15/31 872,938 ------------- 6,031,681 ------------- TOTAL U.S. GOVERNMENT AND AGENCY OBLIGATIONS 10,832,554 ------------- (Cost $9,567,874) MORTGAGE-BACKED SECURITIES - 9.18% FEDERAL NATIONAL MORTGAGE ASSOCIATION - 4.22% 2,371,432 6.12%, 10/01/08, Pool #380999 2,575,629 202,495 6.00%, 01/01/09, Pool #269929 213,685 76,763 6.50%, 03/01/11, Pool #343824 81,549 65,164 6.00%, 06/01/14, Pool #484967 68,441 PAR VALUE VALUE --------- ----- FEDERAL NATIONAL MORTGAGE ASSOCIATION (CONTINUED) $ 741,628 6.00%, 06/01/14, Pool #499193 $ 778,924 286,252 6.00%, 06/01/14, Pool #500131 300,647 479,293 7.00%, 03/01/15, Pool #535200 512,049 344,045 7.50%, 06/01/15, Pool #540078 369,067 152,049 7.50%, 08/01/15, Pool #548844 163,108 164,950 7.50%, 09/01/15, Pool #552002 176,947 1,517,924 5.50%, 05/01/16, Pool #357124 1,580,073 73,861 7.00%, 07/01/16, Pool #253881 78,895 3,022,011 5.50%, 12/01/18, Pool #555291 3,145,860 69,095 6.50%, 01/01/26, Pool #303676 72,448 141,121 8.00%, 12/01/29, Pool #535031 153,288 190,148 8.00%, 04/01/30, Pool #526425 206,089 42,660 8.00%, 04/01/30, Pool #537131 46,237 147,204 8.00%, 04/01/30, Pool #531218 159,544 92,737 8.00%, 04/01/30, Pool #534220 100,511 47,472 8.00%, 05/01/30, Pool #534205 51,451 353,363 7.50%, 02/01/31, Pool #595387 376,664 651,784 7.00%, 02/01/31, Pool #567157 688,938 1,741,285 7.00%, 07/01/31, Pool #596213 1,839,788 119,166 8.00%, 07/01/31, Pool #593098 128,687 3,029,718 6.50%, 08/01/31, Pool #595999 3,165,527 194,117 7.50%, 08/01/31, Pool #253929 206,861 2,172,919 6.50%, 10/01/31, Pool #254007 2,270,321 ------------- 19,511,228 ------------- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION - 2.16% 80,291 6.00%, 04/15/13, Pool #471839 85,022 97,495 6.50%, 05/15/13, Pool #473566 104,314 79,917 6.50%, 06/15/13, Pool #476470 85,506 126,425 6.50%, 08/15/13, Pool #486453 135,267 32,982 6.50%, 11/15/13, Pool #454228 35,289 82,159 6.50%, 11/15/13, Pool #477529 87,906 298,177 6.50%, 11/15/13, Pool #483663 319,032 87,489 6.50%, 11/15/13, Pool #493623 93,608 1,160,768 7.00%, 11/15/13, Pool #780921 1,249,881 213,578 6.50%, 07/15/14, Pool #494014 228,400 135,194 9.00%, 12/15/17, Pool #780201 150,787 30,036 7.50%, 06/15/23, Pool #346618 32,277 111,512 8.00%, 07/15/25, Pool #409912 121,846 153,369 7.50%, 01/15/26, Pool #417191 164,289 1,237,846 6.00%, 01/15/29, Pool #473188 1,302,065 86,570 6.50%, 01/15/29, Pool #482909 91,142 449,247 6.50%, 03/15/29, Pool #464613 472,975 334,510 6.50%, 04/15/29, Pool #483349 352,178 444,865 6.50%, 04/15/29, Pool #473682 468,362 810,827 6.50%, 04/15/29, Pool #488234 853,653 974,968 6.50%, 05/15/29, Pool #487199 1,026,463 209,390 7.00%, 05/15/29, Pool #507929 222,281 501,455 7.50%, 09/15/29, Pool #466164 535,737 183,956 7.50%, 09/15/29, Pool #478707 196,532 19,167 7.50%, 09/15/29, Pool #510409 20,478 195,998 7.50%, 09/15/29, Pool #511482 209,398 316,023 7.00%, 09/15/29, Pool #510394 335,479 113,932 7.50%, 09/15/29, Pool #510424 121,721 40,582 8.50%, 12/15/30, Pool #781222 43,908 554,642 7.00%, 06/15/31, Pool #426776 588,193 253,659 6.50%, 07/15/31, Pool #555841 266,768 ------------- 10,000,757 ------------- See Notes to Financial Statements. 45 LIBERTY ASSET ALLOCATION FUND PORTFOLIO OF INVESTMENTS (CONTINUED) APRIL 30, 2003 (UNAUDITED) PAR VALUE VALUE --------- ----- FEDERAL HOME LOAN MORTGAGE CORPORATION - 1.69% $ 333,670 6.50%, 02/01/11, Pool #G10473, Gold $ 353,515 189,066 6.50%, 04/01/11, Pool #E00426, Gold 200,135 307,832 6.50%, 04/01/11, Pool #E63949, Gold 325,854 208,924 6.50%, 05/01/11, Pool #E64054, Gold 221,156 228,488 6.50%, 10/01/11, Pool #E20269, Gold 242,983 93,811 7.50%, 07/01/15, Pool #E80965, Gold 100,648 3,772 7.50%, 08/01/15, Pool #E81252, Gold 4,046 206,204 8.00%, 09/01/15, Pool #E00881, Gold 224,434 110,798 6.50%, 07/01/16, Pool #E00996, Gold 116,991 72,035 6.50%, 04/01/26, Pool #D70880, Gold 75,418 213,325 6.50%, 04/01/26, Pool #G00467, Gold 223,345 269,660 6.50%, 06/01/26, Pool #C80406, Gold 282,325 178,334 6.50%, 02/01/27, Pool #D77810, Gold 186,480 279,239 6.50%, 02/01/27, Pool #D78116, Gold 291,994 125,868 6.50%, 02/01/27, Pool #D78152, Gold 131,617 248,121 6.50%, 03/01/27, Pool #D78905, Gold 259,454 493,551 6.50%, 03/01/27, Pool #D79051, Gold 516,731 432,491 7.00%, 07/01/28, Pool #C00632, Gold 456,677 590,768 6.50%, 09/01/28, Pool #C00647, Gold 617,381 199,704 7.00%, 04/01/29, Pool #C00756, Gold 210,871 267,351 7.50%, 01/01/30, Pool #C35185, Gold 285,348 301,959 7.00%, 01/01/30, Pool #C35372, Gold 318,660 558,353 6.50%, 06/01/31, Pool #C01184, Gold 582,954 97,540 7.00%, 06/01/31, Pool #C01188, Gold 102,871 138,535 6.50%, 07/01/31, Pool #C55192, Gold 144,690 1,268,926 7.00%, 08/01/31, Pool #C01211, Gold 1,338,269 ------------- 7,814,847 ------------- OTHER MORTGAGE-BACKED SECURITIES - 1.11% 196,978 American Mortgage Trust 8.30%, 09/27/22 177,280 1,200,000 Federal National Mortgage Association Series 2003-21, Class PH 4.50%, 04/25/13 1,244,274 1,200,000 Federal National Mortgage Association Series 2003-24, Class LC 5.00%, 12/25/15 1,255,328 2,000,000 GS Mortgage Securities Corp. II Series 1998-C1, Class A-2 6.62%, 10/18/30 2,241,920 220,460 Rural Housing Trust, Series 1987-1, Class D, CMO 6.33%, 04/01/26 226,643 ------------- 5,145,445 ------------- TOTAL MORTGAGE-BACKED SECURITIES 42,472,277 ------------- (Cost $39,921,863) CORPORATE NOTES AND BONDS - 17.71% 225,000 Advance PCS 8.50%, 04/01/08 244,125 65,000 Airgas Inc. 9.13%, 01/10/00 72,800 700,000 Allied Waste North America, Inc., Series B 7.88%, 01/01/09 721,000 PAR VALUE VALUE --------- ----- $ 150,000 American Axle & Manufacturing, Inc. Senior Subordinate Note 9.75%, 03/01/09 $ 163,875 620,000 AmerisourceBergen Corp. Senior Note 8.13%, 09/01/08 678,900 750,000 AOL Time Warner, Inc. 6.88%, 05/01/12 817,740 250,000 AOL Time Warner, Inc. 7.63%, 04/15/31 276,650 300,000 AOL Time Warner, Inc. 7.70%, 5/01/32 335,232 300,000 AT&T Corp., Senior Note 8.00%, 11/15/31 331,500 640,000 AT&T Wireless Services, Inc., Senior Note 7.88%, 03/01/11 738,093 675,000 BAE Systems Holdings, Inc. 6.40%, 12/15/11 (C) 720,792 450,000 Baker Hughes, Inc., Senior Note 6.88%, 01/15/29 515,493 700,000 Ball Corp. 6.88%, 12/15/12 735,000 250,000 Burlington Northern Railroad Co., Series H 9.25%, 10/01/06 295,450 300,000 Burlington Northern Santa Fe Corp., Debenture 7.00%, 12/15/25 337,650 200,000 Burlington Northern Santa Fe Corp., Debenture 6.88%, 02/15/16 231,922 280,000 Cascades, Inc., Senior Note 7.25%, 02/15/13 (C) 295,400 345,000 Chesapeake Energy Corp., Senior Note 7.50%, 09/15/13 (C) 363,975 450,000 Cinemark USA, Inc., Senior Subordinate Note 9.00%, 02/01/13 (C) 486,000 305,000 Coca-Cola Enterprises, Debenture 6.95%, 11/15/26 357,143 350,000 Constar International, Inc., Senior Subordinate Note 11.00%, 12/01/12 367,500 700,000 Constellation Brands, Inc., Series B 8.13%, 01/15/12 742,000 700,000 Cott Beverages USA, Inc. 8.00%, 12/15/11 754,250 1,350,000 Countrywide Home Loans, Inc. 6.85%, 06/15/04 1,426,018 1,500,000 Cox Communications, Inc. 7.75%, 11/01/10 1,780,470 100,000 CSC Holdings, Debenture 8.13%, 08/15/09 106,250 445,000 CSC Holdings, Senior Subordinate Debenture 9.88%, 02/15/13 467,250 200,000 CSC Holdings, Senior Subordinate Debenture 10.50%, 05/15/16 225,500 800,000 DaimlerChrysler NA Holding Corp. 7.40%, 01/20/05 866,512 750,000 Devon Financing Corp. ULC 6.88%, 09/30/11 863,070 250,000 Devon Financing Corp. ULC 7.88%, 09/30/31 309,132 See Notes to Financial Statements. 46 LIBERTY ASSET ALLOCATION FUND PORTFOLIO OF INVESTMENTS (CONTINUED) APRIL 30, 2003 (UNAUDITED) PAR VALUE VALUE --------- ----- CORPORATE NOTES AND BONDS (CONTINUED) $ 500,000 Disney (Walt) Co. 7.30%, 02/08/05 $ 541,380 1,000,000 Disney (Walt) Co., MTN 5.80%, 10/27/08 1,063,430 575,000 Dex Media East LLC/Dex Media East Finance Co. Senior Subordinate Note 12.13%, 11/15/12 (C) 681,375 225,000 DirecTV Holdings LLC, Senior Note 8.38%, 03/15/13 (C) 250,313 1,000,000 El Paso CGP Co. 7.50%, 08/15/06 920,000 25,000 Equistar Chemicals LP/Equistar Funding Corp. 10.13%, 09/01/08 26,250 75,000 Equistar Chemicals LP/Equistar Funding Corp. Senior Note 10.63%, 05/01/11 (C) 78,750 155,000 Ethyl Corp., Senior Note 8.55%, 05/01/10 (C) 160,425 460,000 Extended Stay America, Inc. Senior Subordinate Note 9.15%, 03/15/08 462,300 1,850,000 FirstEnergy Corp., Series A 5.50%, 11/15/06 1,964,145 1,400,000 Florida Windstorm Underwriting Assoc. Series 1999-A 7.13%, 02/25/19 (C) 1,618,652 600,000 Ford Motor Credit Co. 6.88%, 02/01/06 619,596 500,000 Ford Motor Credit Co. 7.38%, 02/01/11 506,425 1,000,000 Gannett Co., Inc. 5.50%, 04/01/07 1,093,070 750,000 General Motors Acceptance Corp. 7.25%, 03/02/11 783,360 550,000 General Motors Acceptance Corp. 8.00%, 11/01/31 571,549 500,000 Georgia-Pacific Corp. 8.88%, 05/15/31 445,000 605,000 Grant Prideco, Inc., Series B 9.63%, 12/01/07 665,500 1,000,000 GTE North, Inc., Debenture 5.65%, 11/15/08 1,082,590 700,000 Harrah's Operating Co., Inc. 7.88%, 12/15/05 754,250 800,000 Hasbro, Inc 8.50%, 03/15/06 868,000 1,450,000 HCA, Inc. 7.13%, 06/01/06 1,554,777 700,000 HCA, Inc. 8.75%, 09/01/10 821,653 350,000 Health Care, REIT Inc. 7.50%, 08/15/07 368,585 315,000 Host Marriott LP, Series I 9.50%, 01/15/07 330,750 480,000 Houghton Mifflin Co., Senior Notes 9.88%, 02/01/13 (C) 518,400 PAR VALUE VALUE --------- ----- $ 1,100,000 Household Finance Corp. 6.50%, 01/24/06 $ 1,212,574 900,000 Household Finance Corp. 6.38%, 10/15/11 989,352 800,000 HSBC Capital Funding LP/Jersey Channel Islands 9.55%, 12/31/49 (C) 1,021,506 1,000,000 IBM Corp., Debenture 7.50%, 06/15/13 1,241,190 40,000 IMC Global, Inc. 7.63%, 11/01/05 40,400 630,000 Indiana Michigan Power, Series C 6.13%, 12/15/06 676,960 700,000 International Game Technology Senior Note 8.38%, 05/15/09 829,500 2,250,000 International Lease Finance Corp. 6.38%, 03/15/09 2,419,943 700,000 Iron Mountain Inc. 8.63%, 04/01/13 764,750 75,000 iStar Financial, Inc., Senior Note 7.00%, 03/15/08 77,625 340,000 K&F Industries, Inc., Series B Senior Subordinate Note 9.63%, 12/15/10 366,350 300,000 Kansas City Southern Railway 9.50%, 10/01/08 331,500 126,000 Kansas City Southern Railway 7.50%, 06/15/09 130,410 525,000 KB Home, Senior Subordinate Note 8.63%, 12/15/08 567,000 150,000 KB Home, Senior Subordinate Note 7.75%, 02/01/10 157,875 275,000 Kellogg Co., Series B, Debenture 7.45%, 04/01/31 336,911 700,000 Kennametal, Inc., Senior Note 7.20%, 06/15/12 735,525 225,000 Kerr-McGee Corp. 7.88%, 09/15/31 263,831 700,000 Lamar Media Corp., Senior Subordinated Note 7.25%, 01/01/13 (C) 735,000 175,000 Lear Corp, Series B 7.96%, 05/15/05 188,125 525,000 Lear Corp, Series B 8.11%, 05/15/09 590,625 35,000 MacDermid, Inc. 9.13%, 07/15/11 38,675 750,000 Marathon Oil Corp. 6.00%, 07/01/12 811,762 300,000 Mediacom LLC/Mediacom Capital Corp., Senior Note 9.50%, 01/15/13 321,750 750,000 Nexen, Inc 7.88%, 03/15/32 858,630 550,000 Nextel Communications, Inc., Senior Discount Note 10.65%, 09/15/07 576,125 250,000 Norfolk Southern Corp., Senior Note 7.25%, 02/15/31 290,842 See Notes to Financial Statements. 47 LIBERTY ASSET ALLOCATION FUND PORTFOLIO OF INVESTMENTS (CONTINUED) APRIL 30, 2003 (UNAUDITED) PAR VALUE VALUE --------- ----- CORPORATE NOTES AND BONDS (CONTINUED) $ 1,000,000 Norfolk Southern Railway Co., Series I 5.95%, 04/01/08 $ 1,094,510 800,000 Omnicare Inc., Series B 8.13%, 03/15/11 880,000 250,000 Oncor Electric Delivery Corp. 6.38%, 05/01/12 (C) 280,350 630,000 Owens-Illinois, Inc., Senior Note 7.35%, 05/15/08 625,275 850,000 Park Place Entertainment Corp. Senior Subordinate Note 9.38%, 02/15/07 922,250 550,000 Pemex Project Fund Master Trust 7.88%, 02/01/09 624,250 700,000 Pride International, Inc., Senior Notes 10.00%, 06/01/09 770,000 1,100,000 Procter & Gamble Co. 4.75%, 06/15/07 1,178,826 2,000,000 Prudential Insurance Company of America 7.65%, 07/01/07 (C) 2,289,280 700,000 R.H. Donnelley Finance Corp. Senior Subordinate Note (C) 10.88%, 12/15/12 808,500 1,750,000 Raytheon Co. 8.30%, 03/01/10 2,116,083 400,000 Scotts Co. 8.63%, 01/15/09 424,000 350,000 Select Medical Corp. Senior Subordinate Note 9.50%, 06/15/09 374,500 725,000 Silgan Corp., Senior Subordinate Debenture 9.00%, 06/01/09 757,625 595,000 Sinclair Broadcast Group, Inc. 8.75%, 12/15/11 645,575 515,000 Six Flags, Inc., Senior Notes 9.75%, 06/15/07 534,313 15,000 Six Flags, Inc., Senior Notes 9.50%, 02/01/09 15,394 275,000 Southern Power Co., Series B, Senior Note 6.25%, 07/15/12 305,349 1,000,000 Southwest Airlines Co., Debenture 8.75%, 10/15/03 1,026,970 625,000 Sprint Capital Corp. 6.13%, 11/15/08 631,250 525,000 Starwood Hotels & Resorts Worldwide, Inc. 7.88%, 05/01/12 546,000 700,000 Station Casinos, Inc., Senior Subordinate Note 8.88%, 12/01/08 735,000 250,000 Sysco Corp., Debenture 6.50%, 08/01/28 280,920 700,000 TCI Communications, Inc., Debenture 8.75%, 08/01/15 885,955 200,000 Tele-Communications, Inc., Debenture 9.80%, 02/01/12 247,626 785,000 Tenet Healthcare Corp., Senior Note 5.38%, 11/15/06 761,450 500,000 Time Warner, Inc. 6.95%, 01/15/28 514,935 PAR VALUE VALUE --------- ----- $ 400,000 Toll Corp. 7.75%, 09/15/07 $ 414,000 600,000 TransAlta Corp., Yankee 6.75%, 07/15/12 607,980 700,000 Triad Hospitals, Inc., Series B 8.75%, 05/01/09 761,250 230,000 U.S. Bank N.A., Subordinated Note 6.38%, 08/01/11 261,887 1,250,000 Unilever Capital Corp. 6.75%, 11/01/03 1,283,900 420,000 United Parcel Service, Debenture 8.38%, 04/01/1930 (B) 580,360 500,000 Verizon Wireless Capital LLC 5.38%, 12/15/06 539,970 830,000 Wells Fargo Financial, Inc. 6.13%, 02/15/06 917,117 700,000 Westport Resources Corp. 8.25%, 11/01/11 756,000 1,000,000 Weyerhaeuser Co. 6.00%, 08/01/06 1,077,930 589,000 Winn-Dixie Stores, Inc. 8.88%, 04/01/08 633,175 775,000 WorldCom, Inc. - WorldCom Group 8.25%, 05/15/31 220,875 470,000 XTO Energy, Inc., Senior Note 7.50%, 04/15/12 517,000 350,000 XTO Energy, Inc., Series B Senior Subordinate Note 8.75%, 11/01/09 366,625 75,000 Yum! Brands, Inc., Senior Note 7.45%, 05/15/05 80,250 75,000 Yum! Brands, Inc., Senior Note 7.65%, 05/15/08 82,312 105,000 Yum! Brands, Inc., Senior Note 8.88%, 04/15/11 121,537 455,000 Yum! Brands, Inc., Senior Note 7.70%, 07/01/12 502,775 ------------- TOTAL CORPORATE NOTES AND BONDS 81,953,082 ------------- (Cost $78,160,852) ASSET-BACKED SECURITIES - 2.94% 900,000 Citicorp Lease Pass Thru Certificate Series 1999-1, Class A-2 8.04%, 12/15/19 (C) 1,079,604 1,200,000 Chase Manhattan Auto Owner Trust Series 2001-B, Class A-4 3.80%, 05/15/08 1,241,940 1,550,000 Chemical Master Credit Card Trust I Series 1996-2, Class A 5.98%, 09/15/08 1,609,024 1,125,000 Citibank Credit Card Issuance Trust Series 2002-A, Class A-1 4.95%, 02/09/09 1,204,043 871,992 Federal Express Corp. Pass Thru Certificate Series 1994-A1, Class A-310 7.53%, 09/23/06 973,309 See Notes to Financial Statements. 48 LIBERTY ASSET ALLOCATION FUND PORTFOLIO OF INVESTMENTS (CONTINUED) APRIL 30, 2003 (UNAUDITED) PAR VALUE VALUE --------- ----- ASSET-BACKED SECURITIES (CONTINUED) $ 1,000,000 Honda Auto Receivables Owner Trust Series 2002-3, Class A-3 3.00%, 05/18/06 $ 1,006,280 1,600,000 J.P. Morgan Commercial Mortgage Finance Corp. Series 1999-C7, Class A-2 6.51%, 10/15/35 1,813,007 1,000,000 LB-UBS Commercial Mortgage Trust Series 2000-C5, Class A-2 6.51%, 12/15/26 1,144,933 1,200,000 MBNA Master Credit Card Trust Series 1999-M, Class A 6.60%, 04/16/07 1,288,164 1,014,042 United Airlines Pass Thru Certificate Series 1991, Class A-1 9.20%, 03/22/08 182,528 588,020 United Airlines Pass Thru Certificate Series 2000-2, Class A-1 7.03%, 10/01/10 429,255 1,600,000 Wells Fargo Auto Trust Series 2001-A, Class A-4 5.07%, 03/15/08 1,649,984 ------------- TOTAL ASSET-BACKED SECURITIES 13,622,071 ------------- (Cost $13,720,377) FOREIGN BONDS (A) - 0.87% 700,000 British Sky Broadcasting Plc 8.20%, 07/15/09 803,152 1,250,000 Danske Bank A/S 6.55%, 09/15/03 (C) 1,270,688 250,000 France Telecom 9.25%, 03/01/11 (B) 304,762 350,000 France Telecom 10.00%, 03/01/31 (B) 463,869 360,000 Province of Nova Scotia 5.75%, 02/27/12 400,907 700,000 Rogers Cable, Inc. 7.88%, 05/01/12 649,992 100,000 Republic of South Africa 7.38%, 04/25/12 112,375 ------------- TOTAL FOREIGN BONDS 4,005,745 ------------- (Cost $3,765,643) MUNICIPAL SECURITY - 0.14% 500,000 New Jersey State, EDA State Pension Funding Revenue Series A, AMT 7.43%, 02/15/29 Insured: MBIA 626,705 ------------- TOTAL MUNICIPAL SECURITY 626,705 ------------- (Cost $543,455) PAR VALUE VALUE --------- ----- REPURCHASE AGREEMENT - 3.40% $ 15,711,000 Repurchase agreement with State Street Bank & Trust Co., dated 04/30/03, due 05/01/03 at 1.230%, collateralized by U.S. Treasury Bonds and Notes with various maturities to 08/15/19, market value $16,049,837 (repurchase proceeds $15,711,531) $ 15,711,000 ------------- (Cost $15,711,000) TOTAL INVESTMENTS - 99.07% 458,422,770 ------------- (Cost $454,467,051) NET OTHER ASSETS AND LIABILITIES - 0.93% 4,286,604 ------------- NET ASSETS - 100.00% $ 462,709,374 ============= ___________________________________________ * Non-income producing security. (A) U.S. Dollar Denominated (B) Interest rate steps up periodically to maturity. The interest rate shown reflects rate in effect on April 30, 2003. (C) Securities exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may only be resold in transactions exempt from registration, normally to qualified institutional buyers. On April 30, 2003, these securities amounted to $12,659,010 or 2.74% of net assets. (D) Cost for federal income tax is $454,261,218. ACRONYM NAME ------- ---- ADR American Depositary Receipt AMT Alternative Minimum Tax. Private activity obligations the interest on which is subject to federal AMT for individuals. CMO Collateralized Mortgage Obligation EDA Economic Development Authority MBIA Municipal Bond Insurance Association MSCI EAFE Morgan Stanley Capital International Europe, Australasia, Far East MTN Medium Term Note SPDR Standard and Poor's Depositary Receipt See Notes to Financial Statements. 49 LIBERTY EQUITY GROWTH FUND PORTFOLIO OF INVESTMENTS APRIL 30, 2003 (UNAUDITED) SHARES VALUE ------ ----- COMMON STOCKS - 96.35% CONSUMER DISCRETIONARY - 13.80% MEDIA - 3.72% 1,500,000 Liberty Media Corp., Series A* $ 16,500,000 400,000 Viacom, Inc., Class B* 17,364,000 --------------- 33,864,000 --------------- MULTI-LINE RETAIL - 6.37% 400,000 Costco Wholesale Corp.* 13,852,000 100,000 Kohl's Corp.* 5,680,000 600,000 Target Corp. 20,064,000 325,000 Wal-Mart Stores, Inc. 18,304,000 --------------- 57,900,000 --------------- SPECIALTY RETAIL - 3.71% 400,000 Bed, Bath & Beyond, Inc.* 15,804,000 300,000 Home Depot, Inc. 8,439,000 500,000 Staples, Inc.* 9,520,000 --------------- 33,763,000 --------------- CONSUMER STAPLES - 8.50% BEVERAGES - 4.31% 300,000 Anheuser-Busch Cos., Inc. 14,964,000 225,000 Coca-Cola Co. 9,090,000 350,000 PepsiCo, Inc. 15,148,000 --------------- 39,202,000 --------------- FOOD & DRUG RETAILING - 0.93% 275,000 Walgreen Co. 8,486,500 --------------- FOOD PRODUCTS - 1.53% 450,000 Kraft Foods, Inc. 13,905,000 --------------- HOUSEHOLD PRODUCTS - 1.73% 175,000 Procter & Gamble Co. 15,723,750 --------------- ENERGY - 8.22% ENERGY EQUIPMENT & SERVICES - 3.73% 300,000 Baker Hughes, Inc. 8,400,000 500,000 National-Oilwell, Inc.* 10,495,000 300,000 Noble Corp.* 9,285,000 300,000 Transocean, Inc.* 5,715,000 --------------- 33,895,000 --------------- SHARES VALUE ------ ----- OIL & GAS - 4.49% 450,000 BP PLC, ADR $ 17,343,000 300,000 ConocoPhillips 15,090,000 200,000 Kerr-McGee Corp. 8,422,000 --------------- 40,855,000 --------------- FINANCIALS - 18.77% BANKS - 7.39% 275,000 Bank of America Corp. 20,363,750 500,000 Bank of New York Co., Inc. 13,225,000 450,000 Mellon Financial Corp. 11,902,500 450,000 Wells Fargo & Co. 21,717,000 --------------- 67,208,250 --------------- DIVERSIFIED FINANCIALS - 7.71% 600,000 Citigroup, Inc. 23,550,000 225,000 Fannie Mae 16,287,750 225,000 Goldman Sachs Group, Inc. 17,077,500 450,000 JP Morgan Chase & Co. 13,207,500 --------------- 70,122,750 --------------- INSURANCE - 3.67% 350,000 American International Group, Inc. 20,282,500 275,000 Marsh & McLennan Cos., Inc. 13,112,000 --------------- 33,394,500 --------------- HEALTH CARE - 18.52% BIOTECHNOLOGY - 0.59% 87,500 Amgen, Inc.* 5,364,625 --------------- HEALTH CARE EQUIPMENT & SUPPLIES - 5.59% 250,000 Alcon, Inc.* 11,012,500 330,000 Baxter International, Inc. 7,590,000 250,000 Boston Scientific Corp.* 10,762,500 450,000 Medtronic, Inc. 21,483,000 --------------- 50,848,000 --------------- HEALTH CARE PROVIDERS & SERVICES - 0.67% 80,000 WellPoint Health Networks, Inc.* 6,075,200 --------------- PHARMACEUTICALS - 11.67% 300,000 Abbott Laboratories 12,189,000 210,000 Biovail Corp.* 7,591,500 325,000 Johnson & Johnson Co. 18,317,000 200,000 Merck & Co., Inc. 11,636,000 1,380,000 Pfizer, Inc. 42,435,000 300,000 Teva Pharmaceutical Industries, Ltd., ADR 14,010,000 --------------- 106,178,500 --------------- See Notes to Financial Statements. 50 LIBERTY EQUITY GROWTH FUND PORTFOLIO OF INVESTMENTS (CONTINUED) APRIL 30, 2003 (UNAUDITED) SHARES VALUE ------ ----- INDUSTRIALS - 11.15% AEROSPACE & DEFENSE - 4.54% 180,000 L-3 Communications Holdings, Inc.* $ 7,992,000 75,000 Northrop Grumman Corp. 6,596,250 375,000 Raytheon Co. 11,223,750 250,000 United Technologies Corp. 15,452,500 --------------- 41,264,500 --------------- COMMERCIAL SERVICES & SUPPLIES - 1.57% 1,000,000 Cendant Corp.* 14,280,000 --------------- INDUSTRIAL CONGLOMERATES - 3.56% 70,000 3M Co. 8,822,800 800,000 General Electric Co. 23,560,000 --------------- 32,382,800 --------------- MACHINERY - 1.48% 210,000 Illinois Tool Works, Inc. 13,435,800 --------------- INFORMATION TECHNOLOGY - 16.43% COMMUNICATIONS EQUIPMENT - 2.23% 800,000 Cisco Systems, Inc.* 12,032,000 500,000 Nokia Oyj, ADR 8,285,000 --------------- 20,317,000 --------------- COMPUTERS & PERIPHERALS - 3.57% 200,000 Dell Computer Corp.* 5,782,000 200,000 IBM Corp. 16,980,000 130,000 Lexmark International, Inc.* 9,686,300 --------------- 32,448,300 --------------- ELECTRONIC EQUIPMENT & INSTRUMENTS - 1.44% 450,000 Celestica, Inc. (CA)* 5,202,000 900,000 Flextronics International, Ltd. (SI)* 7,875,000 --------------- 13,077,000 --------------- SEMICONDUCTOR EQUIPMENT & PRODUCTS - 3.85% 150,000 Analog Devices, Inc.* 4,968,000 500,000 Intel Corp. 9,200,000 200,000 Maxim Integrated Products, Inc. 7,858,000 400,000 Teradyne, Inc.* 4,640,000 450,000 Texas Instruments, Inc. 8,320,500 --------------- 34,986,500 --------------- SOFTWARE - 5.34% 1,900,000 Microsoft Corp. 48,583,000 --------------- SHARES VALUE ------ ----- TELECOMMUNICATION SERVICES - 0.62% WIRELESS TELECOMMUNICATION SERVICES - 0.62% 850,000 American Tower Corp., Class A* $ 5,644,000 --------------- UTILITIES - 0.34% MULTI-UTILITIES & UNREGULATED POWER - 0.34% 450,000 Williams Cos., Inc. 3,127,500 --------------- TOTAL COMMON STOCKS 876,332,475 --------------- (Cost $849,344,556) CONVERTIBLE PREFERRED STOCK - 0.50% UTILITIES - 0.50% GAS UTILITIES - 0.50% 410,000 Williams Cos., Inc., 9.00% 4,510,000 --------------- TOTAL CONVERTIBLE PREFERRED STOCK 4,510,000 --------------- (Cost $10,250,220) PAR VALUE --------- REPURCHASE AGREEMENT - 2.43% $ 22,089,000 Repurchase agreement with State Street Bank & Trust Co., dated 04/30/03, due 05/01/03 at 1.230%, collateralized by a U.S. Treasury Note maturing 11/30/03, market value $22,530,788 (repurchase proceeds $22,089,755) (Cost $22,089,000) 22,089,000 --------------- TOTAL INVESTMENTS - 99.28% 902,931,475 --------------- (Cost $881,683,776)(A) NET OTHER ASSETS AND LIABILITIES - 0.72% 6,548,648 --------------- NET ASSETS - 100.00% $ 909,480,123 =============== __________________________________________ * Non-income producing security. (A) Cost for both financial statement and federal income tax purposes is the same. ACRONYM NAME ------- ---- ADR American Depositary Receipt (CA) Canadian Equity (SI) Singapore Equity See Notes to Financial Statements. 51 LIBERTY EQUITY VALUE FUND PORTFOLIO OF INVESTMENTS (CONTINUED) APRIL 30, 2003 (UNAUDITED) SHARES VALUE ------ ----- COMMON STOCKS - 99.85% CONSUMER DISCRETIONARY - 12.54% HOTELS, RESTAURANTS & LEISURE - 1.89% 331,900 Royal Caribbean Cruises Ltd $ 6,163,383 --------------- HOUSEHOLD DURABLES - 2.18% 79,700 Centex Corp. 5,261,794 37,300 KB Home 1,837,771 --------------- 7,099,565 --------------- LEISURE EQUIPMENT & PRODUCTS - 1.46% 219,500 Mattel, Inc. 4,771,930 --------------- MEDIA - 1.89% 140,400 Comcast Corp.* 4,480,164 39,100 Meredith Corp. 1,689,902 --------------- 6,170,066 --------------- SPECIALTY RETAIL - 3.53% 201,100 Foot Locker, Inc. 2,212,100 100,600 Home Depot, Inc. 2,829,878 215,400 Office Depot, Inc.* 2,726,964 86,400 TJX Cos., Inc. 1,663,200 201,100 Toys `R' Us, Inc.* 2,061,275 --------------- 11,493,417 --------------- TEXTILES & APPAREL - 1.59% 181,500 Jones Apparel Group, Inc.* 5,176,380 --------------- CONSUMER STAPLES - 4.90% BEVERAGES - 1.82% 45,500 Anheuser-Busch Cos., Inc. 2,269,540 90,500 Coca-Cola Co. 3,656,200 --------------- 5,925,740 --------------- FOOD & DRUG RETAILING - 1.51% 343,200 Kroger Co.* 4,907,760 --------------- HOUSEHOLD PRODUCTS - 1.57% 31,600 Colgate-Palmolive Co. 1,806,572 37,000 Procter & Gamble Co. 3,324,450 --------------- 5,131,022 --------------- ENERGY - 8.42% ENERGY EQUIPMENT & SERVICES - 2.72% 136,300 BJ Services Co.* 4,976,313 44,700 Nabors Industries Ltd.* 1,752,240 120,700 Varco International, Inc.* 2,123,113 --------------- 8,851,666 --------------- SHARES VALUE ------ ----- OIL & GAS - 5.70% 80,300 Anadarko Petroleum Corp $ 3,565,320 426,900 Exxon Mobil Corp. 15,026,880 --------------- 18,592,200 --------------- FINANCIALS - 33.57% BANKS - 19.69% 154,600 Bank of America Corp. 11,448,130 45,800 Bank One Corp. 1,651,090 316,000 Charter One Financial, Inc. 9,179,800 64,500 Comerica, Inc. 2,806,395 70,100 GreenPoint Financial Corp. 3,347,976 100,600 National City Corp. 3,013,976 130,700 PNC Financial Services Group, Inc. 5,737,730 301,700 U.S. Bancorp 6,682,655 122,000 Wachovia Corp. 4,661,620 174,400 Washington Mutual, Inc. 6,888,800 181,000 Wells Fargo & Co. 8,735,060 --------------- 64,153,232 --------------- DIVERSIFIED FINANCIALS - 7.73% 206,200 Citigroup, Inc. 8,093,350 50,300 Fannie Mae 3,641,217 35,200 Freddie Mac 2,038,080 23,400 Goldman Sachs Group, Inc. 1,776,060 247,800 MBNA Corp. 4,683,420 120,700 Merrill Lynch & Co., Inc. 4,954,735 --------------- 25,186,862 --------------- INSURANCE - 6.15% 48,300 Allstate Corp. 1,825,257 120,700 American International Group, Inc. 6,994,565 160,900 John Hancock Financial Services, Inc. 4,669,318 99,100 MBIA, Inc. 4,429,770 53,600 Radian Group, Inc. 2,127,920 --------------- 20,046,830 --------------- HEALTH CARE - 8.42% HEALTH CARE EQUIPMENT & SUPPLIES - 1.44% 120,600 Beckman Coulter, Inc. 4,687,722 --------------- HEALTH CARE PROVIDERS & Services - 2.12% 197,300 IMS Health, Inc. 3,038,420 146,100 Omnicare, Inc. 3,874,572 --------------- 6,912,992 --------------- PHARMACEUTICALS - 4.86% 157,000 Alpharma, Inc., Class A 2,928,050 96,800 Bristol-Myers Squibb Co. 2,472,272 114,100 Merck & Co., Inc. 6,638,338 130,700 Watson Pharmaceutical, Inc.* 3,799,449 --------------- 15,838,109 --------------- See Notes to Financial Statements. 52 LIBERTY EQUITY VALUE FUND PORTFOLIO OF INVESTMENTS (CONTINUED) APRIL 30, 2003 (UNAUDITED) SHARES VALUE ------ ----- INDUSTRIALS - 10.16% AEROSPACE & DEFENSE - 3.52% 34,100 Lockheed Martin Corp. $ 1,706,705 150,300 Precision Castparts Corp. 4,161,807 90,500 United Technologies Corp. 5,593,805 --------------- 11,462,317 --------------- AIR FREIGHT & COURIERS - 1.36% 74,100 FedEx Corp. 4,437,108 --------------- COMMERCIAL SERVICES & SUPPLIES - 3.85% 480,900 Cendant Corp.* 6,867,252 152,200 Convergys Corp.* 2,468,684 81,700 First Data Corp. 3,205,091 --------------- 12,541,027 --------------- INDUSTRIAL CONGLOMERATES - 0.60% 15,500 3M Co. 1,953,620 --------------- MACHINERY - 0.83% 80,500 SPX Corp.* 2,720,900 --------------- INFORMATION TECHNOLOGY - 5.21% COMPUTERS & PERIPHERALS - 1.59% 157,400 Hewlett-Packard Co. 2,565,620 30,700 IBM Corp. 2,606,430 --------------- 5,172,050 --------------- ELECTRONIC EQUIPMENT & INSTRUMENTS - 1.34% 148,600 Celestica, Inc.* 1,717,816 301,700 Flextronics International Ltd.* 2,639,875 --------------- 4,357,691 --------------- IT CONSULTING & SERVICES - 2.28% 70,700 Affiliated Computer Services, Inc., Class A* 3,372,390 123,200 Computer Sciences Corp.* 4,059,440 --------------- 7,431,830 --------------- MATERIALS - 4.14% CHEMICALS - 2.11% 59,000 du Pont (E.I.) de Nemours & Co 2,509,270 87,800 Sigma Aldrich Corp. 4,374,196 --------------- 6,883,466 --------------- SHARES VALUE ------ ----- CONTAINERS & PACKAGING - 1.52% 352,000 Smurfit-Stone Container Corp.* $ 4,952,640 --------------- PAPER & FOREST PRODUCTS - 0.51% 33,000 Rayonier, Inc. 1,661,880 --------------- TELECOMMUNICATION SERVICES - 7.08% DIVERSIFIED TELECOMMUNICATIONS - 7.08% 89,300 BellSouth Corp. 2,276,257 261,400 SBC Communications, Inc. 6,106,304 163,000 Telefonos de Mexico SA, ADR 4,924,230 261,300 Verizon Communications, Inc. 9,767,394 --------------- 23,074,185 --------------- UTILITIES - 5.41% ELECTRIC UTILITIES - 4.02% 39,300 Hawaiian Electric Industries 1,625,055 181,600 Southern Co. 5,282,744 310,300 TXU Corp. 6,181,176 --------------- 13,088,975 --------------- GAS UTILITIES - 0.89% 74,800 Peoples Energy Corp. 2,905,980 --------------- MULTI-UTILITIES & UNREGULATED POWER - 0.50% 54,400 MDU Resources Group, Inc. 1,618,944 --------------- TOTAL COMMON STOCKS 325,371,489 --------------- (Cost $316,859,906) PAR VALUE --------- REPURCHASE AGREEMENT - 0.38% $ 1,253,000 Repurchase agreement with State Street Bank & Trust Co., dated 04/30/03, due 05/01/03 at 1.230%, collateralized by a U.S. Treasury Bond maturing 08/15/14, market value $1,284,856 (repurchase proceeds $1,253,043) (Cost $1,253,000) 1,253,000 --------------- TOTAL INVESTMENTS - 100.23% 326,624,489 --------------- (Cost $318,112,906)(A) NET OTHER ASSETS AND LIABILITIES - (0.23)% (752,909) --------------- NET ASSETS - 100.00% $ 325,871,580 ================ __________________________________________ * Non-income producing security. (A) Cost for both financial statement and federal income tax purposes is the same. ACRONYM NAME ------- ---- ADR American Depositary Receipt See Notes to Financial Statements. 53 LIBERTY INTERNATIONAL EQUITY FUND PORTFOLIO OF INVESTMENTS APRIL 30, 2003 (UNAUDITED) SHARES VALUE ------ ----- COMMON STOCKS - 98.45% CONSUMER DISCRETIONARY - 20.92% AUTO COMPONENTS - 0.87% 176,500 Denso Corp $ 2,519,735 26,500 FCC Co., Ltd. 623,110 --------------- 3,142,845 --------------- AUTOMOBILES - 1.31% 56,900 Honda Motor Co., Ltd. 1,887,429 372,000 Nissan Motor Co., Ltd. 2,858,414 --------------- 4,745,843 --------------- HOUSEHOLD DURABLES - 4.74% 254,021 Koninklijke (Royal) Philips Electronics NV 4,734,630 19,145,000 Land and Houses Public Co., Ltd., NVDR. 3,307,412 567,000 Matsushita Electric Industrial Co., Ltd. 4,523,430 228,100 Pioneer Corp. 4,578,090 --------------- 17,143,562 --------------- INTERNET & CATALOG RETAIL - 0.51% 49,900 Belluna Co., Ltd. 1,827,041 --------------- MEDIA - 6.47% 421,100 BEC World Public Co., Ltd. 2,025,134 516,600 British Sky Broadcasting Group Plc* 5,358,733 164,500 JC Decaux SA* 1,590,973 641,300 Pearson Plc 5,349,501 533,476 Reed Elsevier Plc 4,258,073 164,713 VNU NV 4,788,308 --------------- 23,370,722 --------------- MULTI-LINE RETAIL - 3.35% 100,000 Aeon Co., Ltd. 2,275,781 266,000 Marui Co., Ltd. 2,218,156 22,800 Shinsegae Co., Ltd. 2,720,988 1,768,300 Wal-Mart de Mexico SA de CV, Series V 4,886,938 --------------- 12,101,863 --------------- SPECIALTY RETAIL - 3.17% 1,125,138 Kingfisher Plc 4,400,301 344,100 Next Plc 5,193,071 33,600 Shimamura Co., Ltd. 1,862,277 --------------- 11,455,649 --------------- TEXTILES & APPAREL - 0.50% 41,400 LVMH Moet Hennessy Louis Vuitton SA 1,809,914 --------------- SHARES VALUE ------ ----- CONSUMER STAPLES - 10.82% BEVERAGES - 4.20% 437,900 Diageo Plc $ 4,861,073 1,511,100 Foster's Group Ltd. 4,239,543 99,046 Heineken NV 3,684,432 27,125 Pernod-Ricard 2,385,335 --------------- 15,170,383 --------------- FOOD & DRUG RETAILING - 1.32% 51,400 Carrefour SA 2,239,620 106,000 Seven-Eleven Japan Co., Ltd. 2,528,048 --------------- 4,767,668 --------------- FOOD PRODUCTS - 2.39% 17,350 Nestle SA, Registered Shares 3,541,078 58,518 Unilever NV, CVA* 3,693,467 95,000 Yakult Honsha Co., Ltd. 1,396,120 --------------- 8,630,665 --------------- HOUSEHOLD PRODUCTS - 1.01% 207,800 Reckitt Benckiser Plc 3,667,884 --------------- PERSONAL PRODUCTS - 0.64% 32,300 L'Oreal SA* 2,313,143 --------------- TOBACCO - 1.26% 272,533 Imperial Tobacco Group Plc 4,564,188 --------------- ENERGY - 3.69% OIL & GAS - 3.69% 936,600 BP Plc 5,940,118 392,081 ENI SpA 5,598,189 13,592 Total Fina Elf SA 1,785,674 --------------- 13,323,981 --------------- FINANCIALS - 16.44% BANKS - 13.52% 46,900 Banco Popular Espanol SA* 2,277,946 231,700 Banco Santander Central Hispano SA 1,823,810 424,400 Bank of Ireland 5,196,014 567,300 Barclays Plc 3,922,342 72,100 Credit Agricole SA 1,329,342 20,900 Credit Lyonnais SA 1,298,109 119,700 Danske Bank A/S 2,306,671 4,577,000 Grupo Financiero BBVA Bancomer, SA de CV* 3,972,281 74,039 Kookmin Bank, ADR 2,039,774 304,645 Royal Bank of Scotland Group Plc 7,996,507 See Notes to Financial Statements. 54 LIBERTY INTERNATIONAL EQUITY FUND PORTFOLIO OF INVESTMENTS (CONTINUED) APRIL 30, 2003 (UNAUDITED) SHARES VALUE ------ ----- BANKS (CONTINUED) 3,656,200 Siam Commercial Bank Public Co., Ltd.*. $ 2,923,424 437,598 Standard Chartered Ltd. 4,885,719 81,700 UBS AG, Registered Shares 3,880,712 1,148,200 UniCredito Italiano SpA 5,032,508 --------------- 48,885,159 --------------- DIVERSIFIED FINANCIALS - 0.95% 113,500 ING Groep NV 1,846,459 160,000 Nomura Holdings, Inc. 1,586,832 --------------- 3,433,291 --------------- INSURANCE - 1.07% 32,532 Converium Holding AG 1,470,814 204,800 Irish Life & Permanent Plc 2,381,465 --------------- 3,852,279 --------------- REAL ESTATE - 0.90% 557,000 Mitsubishi Estate Co., Ltd. 3,264,914 --------------- HEALTH CARE - 12.94% HEALTH CARE EQUIPMENT & SUPPLIES - 3.73% 165,000 Olympus Optical Co., Ltd. 2,861,312 59,200 ResMed, Inc.* 2,171,456 1,266,092 Smith & Nephew Plc 8,450,051 --------------- 13,482,819 --------------- PHARMACEUTICALS - 9.21% 216,000 Chugai Pharmaceutical Co., Ltd. 2,267,383 108,800 CSL Ltd. 1,065,647 117,900 Dr. Reddy's Laboratories Ltd., ADR 2,228,310 192,484 GlaxoSmithKline Plc 3,860,912 135,640 Novartis AG, Registered Shares 5,356,516 165,000 Ranbaxy Laboratories Ltd., GDR 2,565,750 82,644 Sanofi-Synthelabo SA* 4,939,010 25,800 Schering AG* 1,152,437 110,000 Takeda Chemical Industries Ltd. 4,036,782 20,000 Taro Pharmaceuticals Industries* 915,200 105,000 Teva Pharmaceutical Industries Ltd., ADR 4,903,500 --------------- 33,291,447 --------------- INDUSTRIALS - 7.65% BUILDING PRODUCTS - 1.84% 2,355,000 Siam Cement Public Co., Ltd., NVDR 6,652,387 --------------- SHARES VALUE ------ ----- COMMERCIAL SERVICES & SUPPLIES - 1.52% 651,300 Amadeus Global Travel Distribution SA, Class A* $ 3,262,420 553,800 Capita Group Plc 2,245,580 --------------- 5,508,000 --------------- INDUSTRIAL CONGLOMERATES - 0.60% 1,169,300 Big C Supercenter Public Co., Ltd., NVDR 365,790 170,100 Smiths Group Plc 1,820,238 --------------- 2,186,028 --------------- TRANSPORTATION INFRASTRUCTURE - 3.69% 401,862 ACESA Infraestructuras SA 5,234,602 413,199 BAA Plc 3,192,303 4,494,000 Cosco Pacific Ltd. 3,803,079 2,898,000 Zhejiang Expressway Co., Ltd., Class H. 1,105,462 --------------- 13,335,446 --------------- INFORMATION TECHNOLOGY - 7.79% COMMUNICATIONS EQUIPMENT - 0.77% 168,400 Nokia Oyj 2,790,388 --------------- ELECTRONIC EQUIPMENT & INSTRUMENTS - 0.84% 18,810 Keyence Corp. 3,028,113 --------------- IT CONSULTING & SERVICES - 0.26% 110,500 Indra Sistemas SA 951,336 --------------- OFFICE ELECTRONICS - 1.24% 111,000 Canon, Inc. 4,492,946 --------------- SEMICONDUCTOR EQUIPMENT & PRODUCTS - 4.08% 27,390 Rohm Co., Ltd. 2,826,865 16,091 Samsung Electronics Co., Ltd. 4,039,305 518,000 Taiwan Semiconductor Manufacturing Co., Ltd., ADR* 4,335,660 94,500 Tokyo Electron Ltd. 3,547,321 --------------- 14,749,151 --------------- SOFTWARE - 0.60% 74,900 Dassault Systemes SA 2,168,177 --------------- See Notes to Financial Statements. 55 LIBERTY INTERNATIONAL EQUITY FUND PORTFOLIO OF INVESTMENTS (CONTINUED) APRIL 30, 2003 (UNAUDITED) SHARES VALUE ------ ----- MATERIALS - 8.19% CHEMICALS - 2.97% 11,200 Givaudan SA $ 4,340,284 17,000 L'Air Liquide SA 2,579,346 126,900 Shin-Etsu Chemical Co., Ltd. 3,804,442 --------------- 10,724,072 --------------- METALS & MINING - 3.49% 1,515,341 BHP Billiton Ltd. 8,578,802 2,000 Companhia Vale do Rio Doce (A) -- 211,200 Rio Tinto Plc 4,040,385 --------------- 12,619,187 --------------- PAPER & FOREST PRODUCTS - 1.73% 196,853 Stora Enso Oyj, Class R 2,143,788 60,900 Svenska Cellulosa AB, Class B 2,063,851 139,800 UPM-Kymmene Oyj 2,047,667 --------------- 6,255,306 --------------- TELECOMMUNICATION SERVICES - 6.65% DIVERSIFIED TELECOMMUNICATIONS - 2.37% 772,435 Telefonica SA* 8,558,870 --------------- WIRELESS TELECOMMUNICATION SERVICES - 4.28% 1,872 NTT DoCoMo, Inc. 3,867,249 296,200 Orange SA* 2,377,882 4,675,000 Vodafone Group Plc 9,235,199 --------------- 15,480,330 --------------- UTILITIES - 3.36% ELECTRIC UTILITIES - 1.69% 2,208,000 Huaneng Power International, Inc., Class H 2,095,024 609,600 National Grid Transco Plc 4,007,601 --------------- 6,102,625 --------------- GAS UTILITIES - 1.67% 767,500 Centrica Plc 2,040,975 1,558,000 Hong Kong & China Gas 1,837,865 593,400 Snam Rete Gas SpA 2,156,313 --------------- 6,035,153 --------------- TOTAL COMMON STOCKS 355,882,775 --------------- (Cost $364,681,586) PAR VALUE VALUE --------- ----- REPURCHASE AGREEMENT - 2.20% $ 7,956,000 Repurchase agreement with State Street Bank & Trust Co., dated 04/30/03, due 05/01/03 at 1.230%, collateralized by a U.S. Treasury Bond maturing 11/15/08, market value $8,116,200 (repurchase proceeds $7,956,272) $ 7,956,000 --------------- (Cost $7,956,000) TOTAL INVESTMENTS - 100.65% 363,838,775 --------------- (Cost $372,637,586)(B) NET OTHER ASSETS AND LIABILITIES - (0.65)% (2,349,571) --------------- NET ASSETS - 100.00% $ 361,489,204 =============== ________________________________________ * Non-income producing security. (A) Represents fair value as determined in good faith under the direction of the Board of Trustees. (B) Cost for both financial statement and federal income tax purposes is the same. ACRONYM NAME ------- ---- ADR American Depositary Receipt GDR Global Depositary Receipt NVDR Non-Voting Depositary Receipt SUMMARY OF SECURITIES % OF TOTAL BY COUNTRY VALUE INVESTMENTS --------------------------------------------------------------------- United Kingdom $99,290,753 27.29% Japan 64,681,792 17.78 France 26,816,524 7.37 Spain 22,108,985 6.08 Netherlands 18,747,297 5.15 Switzerland 18,589,404 5.11 Thailand 15,274,147 4.20 Australia 13,883,992 3.82 Italy 12,787,009 3.51 United States* 10,127,456 2.78 Mexico 8,859,219 2.43 South Korea 8,800,067 2.42 Ireland 7,577,479 2.08 Finland 6,981,843 1.92 Israel 5,818,700 1.60 India 4,794,060 1.32 Taiwan 4,335,660 1.19 Bermuda 3,803,078 1.05 China 3,200,486 0.88 Denmark 2,306,671 0.63 Sweden 2,063,851 0.57 Hong Kong 1,837,865 0.50 Germany 1,152,437 0.32 ------------ ------- $363,838,775 100.00% ============ ======= * Includes Repurchase Agreement. See Notes to Financial Statements. 56 LIBERTY LARGE CAP CORE FUND PORTFOLIO OF INVESTMENTS APRIL 30, 2003 (UNAUDITED) SHARES VALUE ------ ----- COMMON STOCKS - 99.26% CONSUMER DISCRETIONARY - 13.22% HOTELS, RESTAURANTS & LEISURE - 1.83% 444,352 McDonald's Corp $ 7,598,419 --------------- MEDIA - 5.37% 295,467 Disney (Walt) Co. 5,513,414 54,816 Gannett Co., Inc. 4,150,668 93,305 Omnicom Group, Inc. 5,775,580 158,586 Viacom, Inc., Class B* 6,884,218 --------------- 22,323,880 --------------- MULTI-LINE RETAIL - 1.12% 139,791 Target Corp. 4,674,611 --------------- SPECIALTY RETAIL - 4.90% 194,857 Lowe's Cos., Inc. 8,552,274 147,733 Sherwin-Williams Co. 4,118,796 403,863 Staples, Inc.* 7,689,552 --------------- 20,360,622 --------------- CONSUMER STAPLES - 7.39% BEVERAGES - 4.35% 185,722 Anheuser-Busch Cos., Inc. 9,263,813 204,090 PepsiCo, Inc. 8,833,015 --------------- 18,096,828 --------------- FOOD & DRUG RETAILING - 0.98% 244,004 Safeway, Inc.* 4,055,347 --------------- HOUSEHOLD PRODUCTS - 2.06% 172,487 Kimberly-Clark Corp. 8,584,678 --------------- ENERGY - 6.87% ENERGY EQUIPMENT & SERVICES - 1.16% 172,746 Baker Hughes, Inc. 4,836,888 --------------- OIL & GAS - 5.71% 155,292 BP PLC, ADR 5,984,954 115,389 ConocoPhillips 5,804,067 225,006 Exxon Mobil Corp. 7,920,211 95,569 Kerr-McGee Corp. 4,024,411 --------------- 23,733,643 --------------- SHARES VALUE ------ ----- FINANCIALS - 20.58% BANKS - 7.23% 140,902 Bank of America Corp $ 10,433,793 170,536 Bank of New York Co., Inc. 4,510,677 217,219 Bank One Corp. 7,830,745 150,963 Wells Fargo & Co. 7,285,474 --------------- 30,060,689 --------------- DIVERSIFIED FINANCIALS - 7.62% 326,071 Citigroup, Inc. 12,798,287 129,857 Countrywide Financial Corp. 8,778,333 344,233 JP Morgan Chase & Co. 10,103,239 --------------- 31,679,859 --------------- INSURANCE - 5.73% 122,196 ACE Ltd. 4,042,244 127,041 AFLAC, Inc. 4,155,511 154,584 American International Group, Inc. 8,958,143 208,416 Lincoln National Corp. 6,660,975 --------------- 23,816,873 --------------- HEALTH CARE - 13.73% HEALTH CARE EQUIPMENT & SUPPLIES - 2.81% 138,382 Guidant Corp.* 5,395,514 131,733 Medtronic, Inc. 6,288,933 --------------- 11,684,447 --------------- HEALTH CARE PROVIDERS & SERVICES - 1.16% 92,421 CIGNA Corp. 4,833,618 --------------- PHARMACEUTICALS - 9.76% 164,912 Bristol-Myers Squibb Co. 4,211,853 147,789 Johnson & Johnson Co. 8,329,388 166,200 Merck & Co., Inc. 9,669,516 402,078 Pfizer, Inc. 12,363,898 137,679 Wyeth 5,993,167 --------------- 40,567,822 --------------- INDUSTRIALS - 16.82% AEROSPACE & DEFENSE - 4.69% 253,257 Honeywell International, Inc. 5,976,865 177,603 Raytheon Co. 5,315,658 133,021 United Technologies Corp. 8,222,028 --------------- 19,514,551 --------------- COMMERCIAL SERVICES & SUPPLIES - 3.25% 135,141 Avery Dennison Corp. 7,163,824 292,805 Waste Management, Inc. 6,359,725 --------------- 13,523,549 --------------- See Notes to Financial Statements. 57 LIBERTY LARGE CAP CORE FUND PORTFOLIO OF INVESTMENTS (CONTINUED) APRIL 30, 2003 (UNAUDITED) SHARES VALUE ------ ----- ELECTRICAL EQUIPMENT - 1.34% 195,268 Harris Corp $ 5,576,854 --------------- INDUSTRIAL CONGLOMERATES - 4.72% 69,546 3M Co. 8,765,578 367,967 General Electric Co. 10,836,628 --------------- 19,602,206 --------------- MACHINERY - 1.22% 238,981 Pall Corp. 5,047,279 --------------- ROAD & RAIL - 1.60% 235,707 Burlington Northern Santa Fe Corp. 6,637,509 --------------- INFORMATION TECHNOLOGY - 12.51% COMMUNICATIONS EQUIPMENT - 0.89% 471,034 Motorola, Inc. 3,725,879 --------------- COMPUTERS & PERIPHERALS - 2.37% 116,076 IBM Corp. 9,854,852 --------------- ELECTRONIC EQUIPMENT & INSTRUMENTS - 1.18% 386,155 Avnet, Inc.* 4,923,476 --------------- IT CONSULTING & SERVICES - 2.31% 156,106 Computer Sciences Corp.* 5,143,693 245,139 Electronic Data Systems Corp. 4,449,273 --------------- 9,592,966 --------------- SEMICONDUCTOR EQUIPMENT & PRODUCTS - 1.60% 358,911 Texas Instruments, Inc. 6,636,264 --------------- SOFTWARE - 4.16% 308,232 BMC Software, Inc.* 4,598,821 496,204 Microsoft Corp. 12,687,936 --------------- 17,286,757 --------------- MATERIALS - 2.41% CHEMICALS - 1.46% 124,898 PPG Industries, Inc. 6,058,802 --------------- PAPER & FOREST PRODUCTS - 0.95% 101,040 Bowater, Inc. 3,933,487 --------------- SHARES VALUE ------ ----- TELECOMMUNICATION SERVICES - 4.65% DIVERSIFIED TELECOMMUNICATION - 4.65% 134,600 BellSouth Corp $ 3,430,954 143,388 CenturyTel, Inc. 4,222,777 231,381 SBC Communications, Inc. 5,405,060 167,869 Verizon Communications, Inc. 6,274,943 --------------- 19,333,734 --------------- UTILITIES - 1.08% ELECTRIC UTILITIES - 0.47% 50,247 Consolidated Edison, Inc. 1,953,101 --------------- MULTI-UTILITIES & UNREGULATED POWER - 0.61% 144,450 Duke Energy Corp. 2,540,876 --------------- TOTAL COMMON STOCKS 412,650,366 --------------- (Cost $440,265,826) PAR VALUE --------- REPURCHASE AGREEMENT - 0.57% $ 2,375,000 Repurchase agreement with State Street Bank & Trust Co., dated 04/30/03, due 05/01/03 at 1.230%, collateralized by a U.S. Treasury Bond maturing 11/15/10, market value $2,426,788 (repurchase proceeds $2,375,081) (Cost $2,375,000) 2,375,000 --------------- TOTAL INVESTMENTS - 99.83% 415,025,366 --------------- (Cost $442,640,826)(A) NET OTHER ASSETS AND LIABILITIES - 0.17% 712,913 --------------- NET ASSETS - 100.00% $ 415,738,279 =============== _________________________________________ * Non-income producing security. (A) Cost for both financial statement and federal income tax purposes is the same. ACRONYM NAME ------- ---- ADR American Depositary Receipt See Notes to Financial Statements. 58 LIBERTY SMALL CAP FUND PORTFOLIO OF INVESTMENTS APRIL 30, 2003 (UNAUDITED) SHARES VALUE ------ ----- COMMON STOCKS - 91.48% CONSUMER DISCRETIONARY - 17.13% AUTO COMPONENTS - 0.99% 190,670 Cooper Tire & Rubber Co $ 2,684,634 199,400 R&B, Inc.* 2,115,634 259,900 Sauer-Danfoss, Inc. 2,354,694 --------------- 7,154,962 --------------- HOTELS, RESTAURANTS & LEISURE - 4.35% 125,875 Applebee's International, Inc. 3,448,975 189,220 CEC Entertainment, Inc.* 5,697,414 457,000 Checkers Drive-In Restaurants, Inc.* 2,773,990 264,800 Friendly Ice Cream Corp.* 1,599,392 291,900 Jack in the Box, Inc.* 5,195,820 227,505 O'Charley's, Inc.* 4,604,701 171,500 Ruby Tuesday, Inc. 3,378,550 280,350 Ryan's Family Steak Houses, Inc.* 3,473,536 110,800 Steak N Shake Co.* 1,281,956 --------------- 31,454,334 --------------- HOUSEHOLD DURABLES - 0.85% 138,850 Bassett Furniture Industries, Inc. 1,706,466 127,400 Kimball International, Inc., Class B 2,037,126 256,900 Topps Co., Inc.* 2,391,739 --------------- 6,135,331 --------------- LEISURE EQUIPMENT & PRODUCTS - 0.64% 117,400 Callaway Golf Co. 1,635,382 186,200 RC2 Corp.* 2,956,856 --------------- 4,592,238 --------------- MEDIA - 4.48% 229,133 ADVO, Inc.* 9,009,510 331,190 APAC Customer Services, Inc.* 1,039,937 302,500 Journal Register Co.* 5,357,275 379,100 Paxson Communications Corp.* 1,311,686 127,200 Pulitzer, Inc. 5,931,336 285,000 Regent Communications, Inc.* 1,707,150 107,800 Scholastic Corp.* 3,062,598 223,100 Sinclair Broadcast Group, Inc., Class A* 2,364,860 152,400 Young Broadcasting, Inc., Class A* 2,561,844 --------------- 32,346,196 --------------- SPECIALTY RETAIL - 3.91% 243,800 American Eagle Outfitters * 4,266,500 259,900 Buckle, Inc.* 4,678,200 523,850 InterTAN, Inc.* 3,164,054 169,700 Lithia Motors, Inc., Class A* 2,253,616 77,500 O'Reilly Automotive, Inc.* 2,298,650 SHARES VALUE ------ ----- SPECIALTY RETAIL (CONTINUED) 116,700 Rent-A-Center, Inc.* $ 7,492,140 220,300 Too, Inc.* 4,088,768 --------------- 28,241,928 --------------- TEXTILES & APPAREL - 1.91% 246,900 Phillips-Van Heusen Corp. 3,278,832 103,600 Rocky Shoes & Boots, Inc.* 818,440 300,900 Tommy Hilfiger Corp.* 2,473,398 440,600 Unifirst Corp. 7,247,870 --------------- 13,818,540 --------------- CONSUMER STAPLES - 3.45% FOOD & DRUG RETAILING - 1.49% 276,570 Casey's General Stores, Inc. 3,581,582 81,100 Ingles Markets, Inc., Class A 800,457 134,200 United Natural Foods, Inc.* 3,917,298 227,100 Wild Oats Markets, Inc.* 2,457,222 --------------- 10,756,559 --------------- FOOD PRODUCTS - 1.96% 115,400 Corn Products International, Inc. 3,448,152 303,200 Delta & Pine Land Co. 7,052,432 166,200 Sensient Technologies Corp. 3,673,020 --------------- 14,173,604 --------------- ENERGY - 6.15% ENERGY EQUIPMENT & SERVICES - 3.40% 131,500 Atwood Oceanics, Inc.* 3,425,575 70,300 Core Laboratories NV* 703,000 493,400 Gulfmark Offshore, Inc.* 6,512,880 300,000 Hanover Compressor Co.* 2,523,000 791,000 Newpark Resources, Inc.* 3,709,790 116,100 Oceaneering International, Inc.* 2,619,216 79,100 Offshore Logistics, Inc.* 1,502,900 164,500 Oil States International, Inc.* 1,872,010 110,200 Pride International, Inc.* 1,710,304 --------------- 24,578,675 --------------- OIL & GAS - 2.75% 69,700 3TEC Energy Corp.* 1,076,865 124,900 Cimarex Energy Co.* 2,460,530 163,000 Exco Resources, Inc.* 2,872,060 203,400 Houston Exploration Co.* 5,689,098 50,200 Penn Virginia Corp. 1,955,792 226,600 Vintage Petroleum, Inc. 2,216,148 185,633 XTO Energy, Inc. 3,619,844 --------------- 19,890,337 --------------- See Notes to Financial Statements. 59 LIBERTY SMALL CAP FUND PORTFOLIO OF INVESTMENTS (CONTINUED) APRIL 30, 2003 (UNAUDITED) SHARES VALUE ------ ----- FINANCIALS - 9.53% BANKS - 4.77% 204,100 First Niagara Financial Group, Inc $ 2,479,815 109,598 Hanmi Financial Corp. 1,830,287 227,400 Matrix Bancorp, Inc.* 2,103,450 226,125 Oriental Financial Group 5,562,675 77,100 Pacific Northwest Bancorp 2,171,136 253,125 Republic Bancorp, Inc. 3,288,094 55,900 Silicon Valley Bancshares* 1,306,942 172,848 Superior Financial Corp. 3,291,026 140,000 Taylor Capital Group, Inc. 2,945,600 138,900 Webster Financial Corp. 5,214,306 287,200 Willow Grove Bancorp, Inc. 4,319,488 --------------- 34,512,819 --------------- INSURANCE - 3.00% 127,420 AmerUs Group Co. 3,337,130 176,200 Horace Mann Educators Corp. 2,602,474 256,600 Ohio Casualty Corp.* 3,213,915 171,700 Phoenix Cos., Inc. 1,356,430 18,300 PICO Holdings, Inc.* 254,553 133,100 Presidential Life Corp. 1,075,448 130,500 Reinsurance Group of America 3,738,825 161,100 Selective Insurance Group, Inc. 4,041,999 63,900 United Fire & Casualty Co. 2,056,302 --------------- 21,677,076 --------------- REAL ESTATE - 1.76% 102,600 Corporate Office Properties Trust, Inc., REIT 1,564,650 99,250 Healthcare Realty Trust, Inc., REIT 2,732,352 166,500 Innkeepers USA Trust, Inc., REIT 1,255,410 54,000 Kilroy Realty Corp., REIT 1,340,280 277,825 Medical Office Properties, Inc.*(A) 4,450,756 42,900 SL Green Realty Corp., REIT 1,382,667 --------------- 12,726,115 --------------- HEALTH CARE - 9.57% BIOTECHNOLOGY - 1.81% 217,950 BioMarin Pharmaceutical, Inc.* 2,393,091 221,200 CV Therapeutics, Inc.* 4,419,576 487,100 PRAECIS Pharmaceuticals, Inc.* 2,133,498 445,500 Serologicals Corp.* 4,111,965 --------------- 13,058,130 --------------- HEALTH CARE EQUIPMENT & SUPPLIES - 4.97% 176,850 Datascope Corp. 5,057,733 373,300 Invacare Corp. 11,926,935 232,300 Lifecore Biomedical, Inc.* 885,063 92,421 Respironics, Inc.* 3,550,815 560,500 Thoratec Corp.* 7,706,875 285,700 West Pharmaceutical Services, Inc. 6,813,945 --------------- 35,941,366 --------------- SHARES VALUE ------ ----- HEALTH CARE PROVIDERS & SERVICES - 2.19% 573,500 Beverly Enterprises, Inc.* $ 1,095,385 65,800 Proxymed, Inc.* 559,300 535,300 PSS World Medical, Inc.* 3,217,153 869,125 Res-Care, Inc.* 2,668,214 230,000 Select Medical Corp.* 3,891,600 200,800 Triad Hospitals, Inc.* 4,419,608 --------------- 15,851,260 --------------- PHARMACEUTICALS - 0.60% 497,226 ICN Pharmaceuticals, Inc. 4,350,727 --------------- INDUSTRIALS - 19.93% AEROSPACE & DEFENSE - 1.14% 406,765 Armor Holdings, Inc.* 4,901,518 54,600 Kaman Corp., Class A 546,546 261,300 Ladish Co., Inc.* 1,243,527 83,100 Veridian Corp.* 1,578,069 --------------- 8,269,660 --------------- AIR FREIGHT & COURIERS - 1.42% 365,100 AirNet Systems, Inc.* 759,408 121,500 J. B. Hunt Transport Services, Inc.* 4,197,825 213,100 Ryder System, Inc. 5,293,404 --------------- 10,250,637 --------------- AIRLINES - 0.13% 176,800 Mesa Air Group, Inc.* 951,184 --------------- BUILDING PRODUCTS - 0.65% 290,800 NCI Building Systems, Inc.* 4,681,880 --------------- COMMERCIAL SERVICES & SUPPLIES - 4.13% 98,800 Capital Environmental Resource, Inc.* 377,416 343,100 Cornell Cos., Inc.* 3,688,325 170,900 G & K Services, Inc., Class A 4,670,697 194,400 HMS Holdings Corp.* 550,346 192,800 infoUSA, Inc.* 1,017,984 977,384 Kforce, Inc.* 3,889,988 92,150 Layne Christensen Co.* 686,518 173,100 MPW Industrial Services Group, Inc.* 306,387 169,600 Nashua Corp.* 1,500,960 325,330 NCO Group, Inc.* 5,449,278 420,600 Nextera Enterprises, Inc., Class A* 92,532 47,210 RemedyTemp, Inc., Class A* 552,357 368,300 SOS Staffing Services, Inc.* 139,954 543,000 Spherion Corp.* 2,362,050 246,200 Tetra Tech, Inc.* 3,816,100 138,400 Westaff, Inc.* 276,800 87,100 Willis Lease Finance Corp.* 452,920 --------------- 29,830,612 --------------- See Notes to Financial Statements. 60 LIBERTY SMALL CAP FUND PORTFOLIO OF INVESTMENTS (CONTINUED) APRIL 30, 2003 (UNAUDITED) SHARES VALUE ------ ----- CONSTRUCTION & ENGINEERING - 1.61% 359,500 Chicago Bridge & Iron Co. NV $ 7,190,000 322,400 Mastec, Inc.* 702,832 323,200 Shaw Group, Inc.* 3,765,280 --------------- 11,658,112 --------------- ELECTRICAL EQUIPMENT - 0.98% 237,300 Powell Industries, Inc.* 3,310,335 301,100 Rayovac Corp.* 3,131,440 108,207 Wood's (T.B.) Corp. 654,652 --------------- 7,096,427 --------------- INDUSTRIAL CONGLOMERATES - 0.10% 73,600 Lydall, Inc.* 699,200 --------------- MACHINERY - 7.34% 145,300 AGCO Corp.* 2,645,913 428,605 Albany International Corp., Class A 10,175,083 261,600 CIRCOR International, Inc. 4,277,160 209,400 Denison International Plc, ADR* 3,821,550 293,935 Flowserve Corp.* 4,538,356 203,665 Key Technology, Inc.* 1,835,022 75,200 Oshkosh Truck Corp. 4,211,200 119,600 Pentair, Inc. 4,609,384 197,100 Reliance Steel & Aluminum Co. 3,350,700 309,844 Terex Corp.* 5,127,918 204,585 Thomas Industries, Inc. 5,503,336 154,200 Valmont Industries, Inc. 2,979,144 --------------- 53,074,766 --------------- ROAD & RAIL - 2.43% 181,300 Arkansas Best Corp. 4,595,955 188,945 Kansas City Southern* 2,091,621 81,405 Old Dominion Freight Line, Inc.* 2,699,308 16,800 P.A.M. Transportation Services, Inc.* 399,000 69,900 Roadway Corp. 2,590,494 165,300 Werner Enterprises, Inc. 3,734,127 51,600 U.S. Freightways Corp. 1,471,116 --------------- 17,581,621 --------------- INFORMATION TECHNOLOGY - 13.86% COMMUNICATIONS EQUIPMENT - 0.40% 373,290 NMS Communications Corp.* 332,228 489,700 Performance Technologies, Inc.* 2,512,161 --------------- 2,844,389 --------------- SHARES VALUE ------ ----- COMPUTERS & PERIPHERALS - 1.70% 335,800 Hypercom Corp.* $ 1,568,186 168,700 Intergraph Corp.* 3,441,480 396,900 Maxtor Corp.* 2,182,950 133,000 Rimage Corp.* 1,383,200 150,000 Storage Technology Corp.* 3,708,000 --------------- 12,283,816 --------------- ELECTRONIC EQUIPMENT & INSTRUMENTS - 4.28% 117,700 Analogic Corp. 5,620,175 313,700 Benchmark Electronics, Inc.* 8,140,515 47,710 K-Tron International, Inc.* 741,413 278,640 Keithley Instruments, Inc. 3,399,408 139,500 LeCroy Corp.* 1,414,530 444,212 LSI Industries, Inc. 4,642,015 275,600 Pioneer Standard Electronics, Inc. 2,670,564 273,010 Technitrol, Inc.* 4,310,828 --------------- 30,939,448 --------------- IT CONSULTING & SERVICES - 3.31% 287,960 Acxiom Corp.* 4,019,922 498,900 Analysts International Corp.* 1,012,767 792,500 Computer Task Group, Inc.* 1,759,350 197,000 Gartner, Inc., Class A* 1,564,180 123,100 Integral Systems, Inc.* 2,394,295 185,375 Priority Healthcare Corp., Class B* 4,226,550 357,230 ProQuest Co.* 8,959,328 --------------- 23,936,392 --------------- SEMICONDUCTOR EQUIPMENT & PRODUCTS - 0.94% 481,400 Anadigics, Inc.* 1,001,312 170,700 Asyst Technologies, Inc.* 814,239 182,800 Fairchild Semiconductor International, Inc., Class A* 2,169,836 328,260 Pericom Semiconductor Corp.* 2,783,645 --------------- 6,769,032 --------------- SOFTWARE - 3.23% 415,400 Gerber Scientific, Inc.* 3,427,050 160,100 Henry (Jack) & Associates, Inc. 2,086,103 369,000 Mapinfo Corp.* 1,863,450 320,215 MSC.Software Corp.* 1,978,929 316,500 Progress Software Corp.* 6,168,585 479,800 Sybase, Inc.* 6,141,440 120,000 THQ, Inc.* 1,695,600 --------------- 23,361,157 --------------- See Notes to Financial Statements. 61 LIBERTY SMALL CAP FUND PORTFOLIO OF INVESTMENTS (CONTINUED) APRIL 30, 2003 (UNAUDITED) SHARES VALUE ------ ----- MATERIALS - 6.65% CHEMICALS - 2.80% 139,260 Albemarle Corp $ 3,760,020 121,900 Calgon Carbon Corp. 621,690 176,060 Fuller (H.B.) Co. 4,318,752 230,200 MacDermid, Inc. 5,232,446 166,900 Olin Corp. 3,024,228 152,200 Spartech Corp. 3,295,130 --------------- 20,252,266 --------------- CONTAINERS & PACKAGING - 1.46% 286,300 Greif, Inc., Class A 5,854,835 78,700 Jarden Corp.* 2,321,650 194,800 Longview Fibre Co. 1,486,324 234,650 Peak International, Ltd.* 901,056 --------------- 10,563,865 --------------- METALS & MINING - 0.76% 216,600 GrafTech International, Ltd.* 870,732 250,300 Northwest Pipe Co.* 2,680,713 160,000 Steel Dynamics, Inc.* 1,936,000 --------------- 5,487,445 --------------- PAPER & FOREST PRODUCTS - 1.63% 198,200 Buckeye Technologies, Inc.* 1,050,460 284,840 Glatfelter 3,261,418 250,000 Louisiana-Pacific Corp.* 2,020,000 108,700 Rayonier, Inc. 5,474,132 --------------- 11,806,010 --------------- TELECOMMUNICATION SERVICES - 0.53% DIVERSIFIED TELECOMMUNICATION - 0.53% 168,400 CT Communications, Inc. 1,670,528 352,300 General Communication, Inc., Class A* 2,181,089 --------------- 3,851,617 --------------- UTILITIES - 4.68% ELECTRIC UTILITIES - 0.87% 116,700 Great Plains Energy, Inc. 3,054,039 125,300 Idacorp, Inc. 3,206,427 --------------- 6,260,466 --------------- GAS UTILITIES - 3.19% 88,050 Cascade Natural Gas Corp. 1,679,114 150,750 New Jersey Resources Corp. 5,163,188 146,700 Northwest Natural Gas Co. 3,789,261 224,300 NUI Corp. 3,155,901 100,500 South Jersey Industries, Inc. 3,515,490 276,500 Southwest Gas Corp. 5,740,140 --------------- 23,043,094 --------------- SHARES VALUE ------ ----- WATER UTILITIES - 0.62% 90,350 American States Water Co $ 2,334,644 94,575 Philadelphia Suburban Corp. 2,142,124 --------------- 4,476,768 --------------- TOTAL COMMON STOCKS 661,230,061 --------------- (Cost $717,012,262) CONVERTIBLE PREFERRED STOCKS - 0.78% INSURANCE - 0.52% 137,000 United Fire & Casualty Co. Series A, 6.38% 3,753,800 --------------- OIL & GAS - 0.26% 105,700 Exco Resources, Inc., 5.00% 1,884,630 --------------- TOTAL CONVERTIBLE PREFERRED STOCKS 5,638,430 --------------- (Cost $5,644,700) PAR VALUE --------- REPURCHASE AGREEMENT - 7.56% $ 54,598,000 Repurchase agreement with State Street Bank & Trust Co., dated 04/30/03, due 05/01/03 at 1.230%, collateralized by a U.S. Treasury Note maturing 02/29/04, market value $55,692,000 (repurchase proceeds $54,599,865) 54,598,000 --------------- (Cost $54,598,000) TOTAL INVESTMENTS - 99.82% 721,466,491 --------------- (Cost $777,254,962)(B) NET OTHER ASSETS AND LIABILITIES - 0.18% 1,333,200 --------------- NET ASSETS - 100.00% $ 722,799,691 ================ __________________________________________ * Non-income producing security. (A) Represents fair value as determined in good faith under the direction of the Board of Trustees. (B) Cost for both financial statement and federal income tax purposes is the same. ACRONYM NAME ------- ---- ADR American Depositary Receipt REIT Real Estate Investment Trust See Notes to Financial Statements. 62 LIBERTY SMALL COMPANY EQUITY FUND PORTFOLIO OF INVESTMENTS APRIL 30, 2003 (UNAUDITED) SHARES VALUE ------ ----- COMMON STOCKS - 96.44% CONSUMER DISCRETIONARY - 11.85% HOTELS, RESTAURANTS & LEISURE - 2.56% 506,450 American Classic Voyages Co.* $ 456 116,100 Applebee's International, Inc. 3,181,140 54,100 Red Robin Gourmet Burgers, Inc.* 827,189 396,900 Scientific Games Corp., Class A* 2,587,788 61,500 Station Casinos, Inc.* 1,329,015 --------------- 7,925,588 --------------- HOUSEHOLD DURABLES - 1.98% 63,000 Beazer Homes USA, Inc.* 4,425,750 25,700 Harman International Industries, Inc. 1,711,363 --------------- 6,137,113 --------------- MEDIA - 2.02% 115,900 Gray Television, Inc. 1,280,695 93,800 Lin TV Corp., Class A* 2,242,758 177,000 Radio One, Inc., Class D* 2,708,100 --------------- 6,231,553 --------------- SPECIALTY RETAIL - 5.29% 82,200 Advance Auto Parts, Inc.* 4,088,628 68,500 Cost Plus, Inc.* 2,105,005 92,900 Mothers Work, Inc.* 2,330,861 207,800 PETCO Animal Supplies, Inc.* 4,390,814 102,800 Too, Inc.* 1,907,968 51,400 Urban Outfitters, Inc.* 1,532,748 --------------- 16,356,024 --------------- CONSUMER STAPLES - 1.80% FOOD & DRUG RETAILING - 1.39% 122,400 Performance Food Group Co.* 4,293,792 --------------- FOOD PRODUCTS - 0.41% 28,400 American Italian Pasta Co., Class A* 1,252,440 --------------- ENERGY - 12.31% ENERGY EQUIPMENT & SERVICES - 5.76% 83,600 Cal Dive International, Inc.* 1,345,960 355,400 Key Energy Services, Inc.* 3,578,878 176,200 Matrix Service Co.* 2,235,978 251,600 Maverick Tube Corp.* 4,475,964 332,800 Superior Energy Services, Inc.* 3,011,840 161,200 Unit Corp.* 3,159,520 --------------- 17,808,140 --------------- SHARES VALUE ------ ----- OIL & GAS - 6.55% 56,900 Brown (Tom), Inc.* $ 1,395,188 74,700 Evergreen Resources, Inc.* 3,551,985 205,300 Frontier Oil Corp. 3,473,676 89,000 Patina Oil & Gas Corp. 3,073,170 21,100 Pogo Producing Co. 835,560 75,700 Premcor, Inc.* 1,687,353 73,300 Remington Oil & Gas Corp.* 1,148,611 97,500 Spinnaker Exploration Co.* 2,086,500 82,620 St. Mary Land & Exploration Co. 2,116,724 88,700 Ultra Petroleum Corp.* 887,000 --------------- 20,255,767 --------------- FINANCIALS - 10.69% BANKS - 5.87% 118,400 Accredited Home Lenders Holding Co.* 1,278,720 81,600 Boston Private Financial Holdings, Inc. 1,538,160 163,800 Dime Community Bancshares, Inc. 3,777,228 84,400 East West Bancorp, Inc. 2,856,940 129,800 Prosperity Bancshares, Inc. 2,287,076 91,000 UCBH Holdings, Inc. 2,315,040 83,100 W Holding Co., Inc. 1,636,239 65,400 Webster Financial Corp. 2,455,116 --------------- 18,144,519 --------------- DIVERSIFIED FINANCIALS - 2.14% 142,500 Investors Financial Services Corp. 3,107,925 57,350 Jefferies Group, Inc. 2,226,327 74,600 MTC Technologies, Inc.* 1,268,200 --------------- 6,602,452 --------------- INSURANCE - 2.34% 35,700 Brown & Brown, Inc. 1,276,989 94,500 Hilb, Rogal & Hamilton Co. 3,359,475 66,700 Philadelphia Consolidated Holding Co.*. 2,601,967 --------------- 7,238,431 --------------- REAL ESTATE - 0.34% 85,060 FirstService Corp.* 1,039,433 --------------- HEALTH CARE - 21.44% BIOTECHNOLOGY - 4.95% 144,600 BioMarin Pharmaceuticals, Inc.* 1,587,708 38,200 Cell Genesys, Inc.* 340,744 130,500 CV Therapeutics, Inc.* 2,607,390 110,800 Ilex Oncology, Inc.* 1,483,612 49,300 Neurocrine Biosciences, Inc.* 2,230,825 459,300 Protein Design Labs, Inc.* 4,560,849 190,000 Telik, Inc.* 2,498,500 --------------- 15,309,628 --------------- See Notes to Financial Statements. 63 LIBERTY SMALL COMPANY EQUITY FUND PORTFOLIO OF INVESTMENTS (CONTINUED) APRIL 30, 2003 (UNAUDITED) SHARES VALUE ------ ----- HEALTH CARE EQUIPMENT & SUPPLIES - 6.75% 151,300 American Medical Systems Holdings, Inc.* $ 2,401,131 82,400 BioLase Technology, Inc.* 929,472 166,500 Integra LifeSciences Holdings Corp.* 4,443,885 266,900 Medical Action Industries, Inc.* 3,042,660 157,200 Noven Pharmaceuticals, Inc.* 1,513,836 51,900 Respironics, Inc.* 1,993,998 99,400 SonoSite, Inc.* 1,610,280 51,200 Synovis Life Technologies, Inc.* 749,568 125,800 Wright Medical Group, Inc.* 2,387,684 55,700 Zoll Medical Corp.* 1,799,110 --------------- 20,871,624 --------------- HEALTH CARE PROVIDERS & SERVICES - 4.63% 127,500 Accredo Health, Inc.* 1,883,175 61,200 American Healthways, Inc.* 1,511,028 48,400 Cerner Corp.* 967,032 122,850 Cobalt Corp.* 2,020,883 228,300 Hooper Holmes, Inc. 1,381,215 194,300 LifePoint Hospitals, Inc.* 3,792,736 40,600 Odyssey Healthcare, Inc.* 1,049,104 80,700 WellChoice, Inc.* 1,718,910 --------------- 14,324,083 --------------- PHARMACEUTICALS - 5.11% 75,600 Adolor Corp.* 1,057,644 109,700 Atrix Labs, Inc.* 1,926,332 76,700 InterMune, Inc.* 1,559,311 127,900 Salix Pharmaceuticals, Ltd.* 1,441,433 52,200 SFBC International, Inc.* 814,320 168,000 SICOR, Inc.* 3,012,240 79,200 Taro Pharmaceuticals Industries, Ltd.*. 3,624,192 53,200 Trimeris, Inc.* 2,361,548 --------------- 15,797,020 --------------- INDUSTRIALS - 14.92% AEROSPACE & DEFENSE - 1.91% 83,400 Armor Holdings, Inc.* 1,004,970 84,400 DRS Technologies, Inc.* 2,364,044 261,614 HEICO Corp., Class A 1,593,229 65,300 Integrated Defense Technologies, Inc.*. 931,831 --------------- 5,894,074 --------------- AIR FREIGHT & COURIERS - 1.29% 60,200 JB Hunt Transport Services, Inc.* 2,079,910 63,600 UTI Worldwide, Inc. 1,914,360 --------------- 3,994,270 --------------- SHARES VALUE ------ ----- COMMERCIAL SERVICES & SUPPLIES - 7.41% 49,800 Arbitron, Inc.* $ 1,696,188 89,000 Corporate Executive Board Co.* 3,648,110 49,600 Education Management Corp.* 2,421,472 38,200 FTI Consulting, Inc.* 1,728,550 78,600 Kroll, Inc.* 1,752,780 61,800 SOURCECORP, Inc.* 976,440 37,900 Stericycle, Inc.* 1,489,091 239,000 Sylvan Learning Systems, Inc.* 4,192,060 43,200 United Stationers, Inc. 1,171,152 88,100 Waste Connections, Inc.* 2,963,684 61,800 Whitman Education Group, Inc.* 891,774 --------------- 22,931,301 --------------- CONSTRUCTION & ENGINEERING - 0.73% 112,200 Chicago Bridge & Iron Co. NV 2,244,000 --------------- MACHINERY - 1.54% 136,300 AGCO Corp.* 2,482,023 63,575 CUNO, Inc.* 2,278,528 --------------- 4,760,551 --------------- ROAD & RAIL - 2.04% 146,500 Genesee & Wyoming, Inc., Class A* 2,534,450 109,300 Heartland Express, Inc.* 2,513,900 38,000 Old Dominion Freight Line, Inc.* 1,260,042 --------------- 6,308,392 --------------- INFORMATION TECHNOLOGY - 20.37% COMMUNICATIONS EQUIPMENT - 1.48% 91,200 Avocent Corp.* 2,701,344 444,300 Extreme Networks, Inc.* 1,879,389 --------------- 4,580,733 --------------- COMPUTERS & PERIPHERALS - 1.29% 140,300 Applied Films Corp.* 3,051,525 141,600 Dot Hill Systems Corp.* 948,720 --------------- 4,000,245 --------------- ELECTRONIC EQUIPMENT & INSTRUMENTS - 2.50% 140,300 Itron, Inc.* 2,808,806 57,500 Photon Dynamics, Inc.* 1,259,250 69,300 Planar Systems, Inc.* 1,218,987 239,700 Plexus Corp.* 2,440,146 --------------- 7,727,189 --------------- See Notes to Financial Statements. 64 LIBERTY SMALL COMPANY EQUITY FUND PORTFOLIO OF INVESTMENTS (CONTINUED) APRIL 30, 2003 (UNAUDITED) SHARES VALUE ------ ----- INTERNET SOFTWARE & SERVICES - 1.52% 98,600 Fidelity National Information Solutions, Inc.* $ 1,730,430 121,600 Matrixone, Inc.* 425,600 253,900 webMethods, Inc.* 2,554,234 --------------- 4,710,264 --------------- IT CONSULTING & SERVICES - 1.09% 70,900 Priority Healthcare Corp., Class B* 1,616,520 73,600 SRA International Inc.* 1,740,640 --------------- 3,357,160 --------------- SEMICONDUCTOR EQUIPMENT & PRODUCTS - 8.58% 365,100 Atmel Corp.* 671,784 67,600 ATMI, Inc.* 1,426,292 292,300 Brooks Automation, Inc.* 2,475,781 89,400 Cymer, Inc.* 2,552,370 124,800 DSP Group, Inc.* 2,608,320 381,900 Entegris, Inc.* 4,380,393 102,000 Helix Technology Corp. 1,175,040 52,600 Integrated Circuit Systems, Inc.* 1,142,472 237,500 Intersil Corp., Class A* 4,393,750 205,000 Mykrolis Corp.* 1,644,100 165,300 Skyworks Solutions, Inc. 884,355 179,250 Zoran Corp.* 3,188,858 --------------- 26,543,515 --------------- SOFTWARE - 3.91% 209,300 Activision, Inc.* 3,202,290 260,700 Borland Software Corp.* 2,364,549 98,000 Henry (Jack) & Associates, Inc. 1,276,940 103,300 SafeNet, Inc.* 2,444,078 190,800 Secure Computing Corp.* 1,093,284 121,500 THQ, Inc.* 1,716,795 --------------- 12,097,936 --------------- MATERIALS - 3.06% CHEMICALS - 0.83% 45,100 Scotts Co., Class A* 2,568,445 --------------- CONTAINERS & PACKAGING - 2.23% 146,400 Constar International, Inc.* 1,061,400 200,000 Crown Holdings, Inc.* 1,060,000 161,900 Jarden Corp.* 4,776,050 --------------- 6,897,450 --------------- TOTAL COMMON STOCKS 298,203,132 --------------- (Cost $285,490,333) PAR VALUE VALUE --------- ----- REPURCHASE AGREEMENT - 4.17% $ 12,892,000 Repurchase agreement with State Street Bank & Trust Co., dated 04/30/03, due 05/01/03 at 1.230%, collateralized by a U.S. Treasury Bill maturing 05/15/17, market value $13,154,126 (repurchase proceeds $12,892,440) $ 12,892,000 --------------- (Cost $12,892,000) TOTAL INVESTMENTS - 100.61% 311,095,132 --------------- (Cost $298,382,333)(A) NET OTHER ASSETS AND LIABILITIES - (0.61)% (1,879,609) --------------- NET ASSETS - 100.00% $ 309,215,523 ================ ____________________________________________ * Non-income producing security. (A) Cost for both financial statement and federal income tax purposes is the same. See Notes to Financial Statements. 65 LIBERTY STRATEGIC EQUITY FUND PORTFOLIO OF INVESTMENTS APRIL 30, 2003 (UNAUDITED) SHARES VALUE ------ ----- COMMON STOCKS - 99.48% CONSUMER DISCRETIONARY - 7.49% AUTO COMPONENTS - 1.62% 350,000 Delphi Corp $ 2,940,000 --------------- HOTELS, RESTAURANTS & LEISURE - 2.63% 280,000 McDonald's Corp. 4,788,000 --------------- HOUSEHOLD DURABLES - 0.92% 210,000 Matsushita Electric Industrial Co. Ltd., ADR 1,667,400 --------------- MEDIA - 1.07% 170,000 Interpublic Group of Cos., Inc.* 1,938,000 --------------- SPECIALTY RETAIL - 1.25% 180,000 Office Depot, Inc.* 2,278,800 --------------- CONSUMER STAPLES - 7.51% FOOD & DRUG RETAILING - 1.46% 160,000 Safeway, Inc.* 2,659,200 --------------- FOOD PRODUCTS - 6.05% 95,900 Archer-Daniels-Midland Co. 1,062,572 240,000 ConAgra Foods, Inc. 5,040,000 50,000 Kraft Foods, Inc., Class A 1,545,000 200,000 Sara Lee Corp. 3,356,000 --------------- 11,003,572 --------------- ENERGY - 12.62% ENERGY EQUIPMENT & SERVICES - 2.30% 64,000 Baker Hughes, Inc. 1,792,000 112,000 Halliburton Co. 2,397,920 --------------- 4,189,920 --------------- OIL & GAS - 10.32% 94,000 BP PLC, ADR 3,622,760 48,000 ChevronTexaco Corp. 3,014,880 92,000 ConocoPhillips 4,627,600 42,900 El Paso Corp. 321,750 116,300 Exxon Mobil Corp. 4,093,760 135,000 Marathon Oil Corp. 3,073,950 --------------- 18,754,700 --------------- SHARES VALUE ------ ----- FINANCIALS - 26.03% BANKS - 5.53% 40,000 Bank of America Corp $ 2,962,000 80,000 Bank of New York Co., Inc. 2,116,000 225,000 U.S. Bancorp 4,983,750 --------------- 10,061,750 --------------- DIVERSIFIED FINANCIALS - 10.14% 16,000 American Express Co. 605,760 200,000 Citigroup, Inc. 7,850,000 75,000 Fannie Mae 5,429,250 155,000 J.P. Morgan Chase & Co. 4,549,250 --------------- 18,434,260 --------------- INSURANCE - 7.50% 94,000 American International Group, Inc. 5,447,300 95,000 Lincoln National Corp. 3,036,200 40,000 MBIA, Inc. 1,788,000 98,000 St. Paul Cos., Inc. 3,365,320 --------------- 13,636,820 --------------- REAL ESTATE - 2.86% 200,000 Equity Office Properties Trust, REIT 5,194,000 --------------- HEALTH CARE - 11.54% HEALTH CARE PROVIDERS & SERVICES - 3.01% 110,000 Aetna, Inc. 5,478,000 --------------- PHARMACEUTICALS - 8.53% 60,000 Abbott Laboratories 2,437,800 118,000 Bristol-Myers Squibb Co. 3,013,720 120,000 Merck & Co., Inc. 6,981,600 100,000 Pfizer, Inc. 3,075,000 --------------- 15,508,120 --------------- INDUSTRIALS - 8.95% AEROSPACE & DEFENSE - 4.21% 92,000 Honeywell International, Inc. 2,171,200 80,000 Raytheon Co. 2,394,400 50,000 United Technologies Corp. 3,090,500 --------------- 7,656,100 --------------- COMMERCIAL SERVICES & SUPPLIES - 3.28% 100,000 Automatic Data Processing, Inc. 3,363,000 120,000 Waste Management, Inc. 2,606,400 --------------- 5,969,400 --------------- See Notes to Financial Statements. 66 LIBERTY STRATEGIC EQUITY FUND PORTFOLIO OF INVESTMENTS (CONTINUED) APRIL 30, 2003 (UNAUDITED) SHARES VALUE ------ ----- INDUSTRIAL CONGLOMERATES - 1.46% 90,000 Textron, Inc $ 2,654,100 --------------- INFORMATION TECHNOLOGY - 3.72% COMMUNICATIONS EQUIPMENT - 1.37% 150,000 Nokia Oyj, ADR 2,485,500 --------------- ELECTRONIC EQUIPMENT & INSTRUMENTS - 0.63% 100,000 Celestica, Inc.* 1,156,000 --------------- IT CONSULTING & SERVICES - 1.72% 172,000 Electronic Data Systems Corp. 3,121,800 --------------- MATERIALS - 4.33% CHEMICALS - 0.91% 74,400 Akzo Nobel NV, ADR 1,655,400 --------------- METALS & MINING - 1.55% 120,000 Barrick Gold Corp. 1,794,000 25,000 Nucor Corp. 1,021,250 --------------- 2,815,250 --------------- PAPER & FOREST PRODUCTS - 1.87% 40,000 Bowater, Inc. 1,557,200 120,000 Georgia-Pacific Corp. 1,852,800 --------------- 3,410,000 --------------- TELECOMMUNICATION SERVICES - 9.32% DIVERSIFIED TELECOMMUNICATIONS - 9.32% 150,000 BellSouth Corp. 3,823,500 248,000 SBC Communications, Inc. 5,793,280 196,000 Verizon Communications, Inc. 7,326,480 --------------- 16,943,260 --------------- UTILITIES - 7.97% ELECTRIC UTILITIES - 6.52% 85,000 American Electric Power Co., Inc. 2,242,300 100,000 Consolidated Edison, Inc. 3,887,000 100,000 Public Service Enterprise Group, Inc. 3,847,000 94,000 TXU Corp. 1,872,480 --------------- 11,848,780 --------------- SHARES VALUE ------ ----- MULTI-UTILITIES & UNREGULATED POWER- 1.45% 150,000 Duke Energy Corp $ 2,638,500 --------------- TOTAL COMMON STOCKS 180,886,632 --------------- (Cost $209,576,083) TOTAL INVESTMENTS - 99.48% 180,886,632 --------------- (Cost $209,576,083)(A) NET OTHER ASSETS AND LIABILITIES - 0.52% 953,816 --------------- NET ASSETS - 100.00% $ 181,840,448 ================ _____________________________________________ * Non-income producing security. (A) Cost for both financial statement and federal income tax purposes is the same. ACRONYM NAME ------- ---- ADR American Depositary Receipt See Notes to Financial Statements. 67 STATEMENTS OF ASSETS AND LIABILITIES APRIL 30, 2003 (UNAUDITED)
LIBERTY LIBERTY LIBERTY LIBERTY ASSET ALLOCATION EQUITY GROWTH EQUITY VALUE INTERNATIONAL FUND FUND FUND EQUITY FUND ---------------- --------------- -------------- ----------------- ASSETS: Investments (Note 2): Investments at cost $ 454,467,051 $ 881,683,776 $ 318,112,906 $ 372,637,586 Net unrealized appreciation (depreciation) 3,955,719 21,247,699 8,511,583 (8,798,811) ----------------- --------------- -------------- ----------------- Total investments at value 458,422,770 902,931,475 326,624,489 363,838,775 Cash 5,730 900 793 586 Foreign currency (cost of $15,865 and $468,594, respectively) 15,957 -- -- 473,970 Receivable for investments sold 8,215,182 7,355,855 13,004,753 9,378 Receivable for shares sold 98,863 1,266,071 331,196 126,581 Interest and dividend receivables 2,740,203 936,942 362,847 1,581,152 Deferred Trustees' compensation plan 18,904 38,907 13,994 15,130 Expense reimbursement due from Advisor 63,972 109,534 16,911 74,376 Other assets 1,191 -- 27,339 -- ----------------- --------------- -------------- ----------------- Total assets 469,582,772 912,639,684 340,382,322 366,119,948 ----------------- --------------- -------------- ----------------- LIABILITIES: Payable for investments purchased 5,370,431 -- 13,087,877 -- Payable for shares repurchased 681,601 1,597,260 933,925 3,852,353 Advisory fee payable (Note 4) 282,277 530,317 192,975 192,410 Administration fee payable (Note 4) 23,884 48,822 17,239 18,165 Transfer agent fee payable 141,917 182,721 103,031 113,082 Pricing and bookkeeping fees -- 24,070 2,649 1,708 Merger fee 26,345 -- -- -- Trustees' fee -- 44,177 10,982 12,049 Custody fee -- -- 2,894 201,026 Reports to shareholders 156,163 479,720 145,176 92,675 Deferred Trustees' fee 18,904 38,907 13,994 15,130 Other liabilities 171,876 213,567 -- 132,146 ----------------- --------------- -------------- ----------------- Total liabilities 6,873,398 3,159,561 14,510,742 4,630,744 ----------------- --------------- -------------- ----------------- NET ASSETS $ 462,709,374 $ 909,480,123 $ 325,871,580 $ 361,489,204 ================= =============== ============== ================= NET ASSETS CONSIST OF: Par value (Note 5) $ 35,430 $ 55,004 $ 32,353 $ 38,309 Paid-in capital in excess of par value 500,762,574 1,049,082,187 401,768,102 738,476,338 Undistributed net investment income investments Accumulated net realized loss on 1,479,769 949,091 524,426 1,780,054 sold and foreign currency transactions (43,524,210) (161,853,858) (84,964,884) (369,864,426) Net unrealized appreciation (depreciation) of investments and foreign currency translations 3,955,811 21,247,699 8,511,583 (8,941,071) ----------------- --------------- -------------- ----------------- NET ASSETS $ 462,709,374 $ 909,480,123 $ 325,871,580 $ 361,489,204 ================= =============== ============== =================
See Notes to Financial Statements. 68 STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED) APRIL 30, 2003 (UNAUDITED)
LIBERTY LIBERTY LIBERTY LIBERTY ASSET ALLOCATION EQUITY ROWTH EQUITY VALUE INTERNATIONAL FUND (a) FUND (b) FUND (c) EQUITY FUND (d) -------------- -------------- --------------- --------------- NET ASSETS: Class A $ 138,713 $ 340,136 $ 61,873 $ 205,272 ============== ============== =============== =============== Class B $ 898,602 $ 604,112 $ 100,083 $ 80,622 ============== ============== =============== =============== Class C $ 108,896 $ 281,486 $ 7,822 $ 16,226 ============== ============== =============== =============== Class G $ 63,547,258 $ 58,756,262 $ 14,240,495 $ 4,550,542 ============== ============== =============== =============== Class T $ 179,510,481 $ 225,100,648 $ 118,230,504 $ 38,535,030 ============== ============== =============== =============== Class Z $ 218,505,424 $ 624,397,479 $ 193,230,803 $ 318,101,512 ============== ============== =============== =============== SHARES OF BENEFICIAL INTEREST OUTSTANDING: Class A 10,627 20,642 6,196 21,984 ============== ============== =============== =============== Class B 68,869 37,894 10,489 8,676 ============== ============== =============== =============== Class C 8,342 17,648 819 1,752 ============== ============== =============== =============== Class G 4,876,424 3,804,542 1,491,835 494,488 ============== ============== =============== =============== Class T 13,742,553 13,724,087 11,852,758 4,152,963 ============== ============== =============== =============== Class Z 16,723,079 37,399,128 18,990,575 33,629,455 ============== ============== =============== =============== CLASS A: Net asset value per share (e) $ 13.05 $ 16.48 $ 9.99 $ 9.34 ============== ============== =============== =============== Maximum sales charge 5.75% 5.75% 5.75% 5.75% ============== ============== =============== =============== Maximum offering price per share (f) (net asset value per share/0.9425) $ 13.85 $ 17.49 $ 10.60 $ 9.91 ============== ============== =============== =============== CLASS B: Net asset value and offering price per share (e) $ 13.05 $ 15.94 $ 9.54 $ 9.29 ============== ============== =============== =============== CLASS C: Net asset value and offering price per share (e) $ 13.05 $ 15.95 $ 9.55 $ 9.26 ============== ============== =============== =============== CLASS G: Net asset value and offering price per share (e) $ 13.03 $ 15.44 $ 9.55 $ 9.20 ============== ============== =============== =============== CLASS T: Net asset value per share (e) $ 13.06 $ 16.40 $ 9.97 $ 9.28 ============== ============== =============== =============== Maximum sales charge 5.75% 5.75% 5.75% 5.75% ============== ============== =============== =============== Maximum offering price per share (f) (net asset value per share/0.9425) $ 13.86 $ 17.40 $ 10.58 $ 9.85 ============== ============== =============== =============== CLASS Z: Net asset value, offering and redemption price per share $ 13.07 $ 16.70 $ 10.18 $ 9.46 ============== ============== =============== ===============
_________________________________________ (a) Effective November 18, 2002, the Galaxy Asset Allocation Fund Prime A, Prime B, Retail B, Retail A and Trust shares were reorganized as Liberty Asset Allocation Fund Class A, Class B, Class G, Class T and Class Z shares, respectively. Subsequently, the Fund began offering Class C shares. (b) Effective November 18, 2002, the Galaxy Equity Growth Fund Prime A, Prime B, Retail B, Retail A and Trust shares were reorganized as Liberty Equity Growth Fund Class A, Class B, Class G, Class T and Class Z shares, respectively. Subsequently, the Fund began offering Class C shares. (c) Effective November 25, 2002, the Galaxy Equity Value Fund Retail B, Retail A and Trust shares were reorganized as Liberty Equity Value Fund Class G, Class T and Class Z shares, respectively. Subsequently, the Fund began offering Class A, Class B and Class C shares. (d) Effective November 18, 2002, the Galaxy International Equity Fund Prime A, Prime B, Retail B, Retail A and Trust shares were reorganized as Liberty International Equity Fund Class A, Class B, Class G, Class T and Class Z shares, respectively. Subsequently, the Fund began offering Class C shares. (e) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. (f) On sales of $50,000 or more the offering price is reduced. See Notes to Financial Statements. 69 STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED) APRIL 30, 2003 (UNAUDITED)
LIBERTY LIBERTY LIBERTY LIBERTY LARGE CAP SMALL CAP SMALL COMPANY STRATEGIC EQUITY CORE FUND FUND EQUITY FUND FUND --------------- --------------- --------------- ---------------- ASSETS: Investments (Note 2): Investments at cost $ 442,640,826 $ 777,254,962 $ 298,382,333 $ 209,576,083 Net unrealized appreciation (depreciation) (27,615,460) (55,788,471) 12,712,799 (28,689,451) --------------- --------------- --------------- ---------------- Total investments at value 415,025,366 721,466,491 311,095,132 180,886,632 Cash 206 3 80 -- Receivable for investments sold 1,291,521 1,399,881 2,222,919 1,655,945 Receivable for shares sold 77,034 2,112,730 277,700 222,917 Interest and dividend receivables 439,717 280,000 52,622 552,664 Deferred Trustees' compensation plan 18,346 10,242 12,519 10,646 Expense reimbursement due from Advisor 16,250 34,486 42,423 27,827 Other assets -- 4,465 17,822 16,589 --------------- --------------- --------------- ---------------- Total assets 416,868,440 725,308,298 313,721,217 183,373,220 --------------- --------------- --------------- ---------------- LIABILITIES: Payable to custodian bank -- -- -- 203,025 Payable for investments purchased -- 964,306 3,518,816 573,142 Payable for shares repurchased 282,415 863,760 454,206 494,544 Distributions payable 14,604 -- -- 511 Advisory fee payable (Note 4) 266,853 412,424 182,610 110,568 Administration fee payable (Note 4) 23,274 37,508 16,313 9,516 Transfer agent fee payable 184,916 27,650 189,311 16,571 Pricing and bookkeeping fees 8,103 8,094 4,687 -- Merger fee 72,879 -- -- 96,811 Trustees' fee 16,790 13,605 9,533 -- Custody fee 2,859 16,822 10,931 -- Registration fee 7,546 -- -- -- Reports to shareholders 218,478 132,776 106,768 17,438 Deferred Trustees' fee 18,346 10,242 12,519 10,646 Other liabilities 13,098 21,420 -- -- --------------- --------------- --------------- ---------------- Total liabilities 1,130,161 2,508,607 4,505,694 1,532,772 --------------- --------------- --------------- ---------------- NET ASSETS $ 415,738,279 $ 722,799,691 $ 309,215,523 $ 181,840,448 =============== =============== =============== ================ NET ASSETS CONSIST OF: Par value (Note 5) $ 39,884 $ 56,326 $ 25,520 $ 21,343 Paid-in capital in excess of par value 440,096,078 765,161,173 428,884,359 218,350,293 Undistributed (overdistributed) net investment income (144,072) 192,990 -- 539,968 Accumulated net investment loss -- -- (1,454,013) -- Accumulated net realized gain (loss) on investments sold and foreign currency transactions 3,361,849 13,177,673 (130,953,142) (8,381,705) Net unrealized appreciation (depreciation) of investments and foreign currency translations (27,615,460) (55,788,471) 12,712,799 (28,689,451) --------------- --------------- --------------- ---------------- NET ASSETS $ 415,738,279 $ 722,799,691 $ 309,215,523 $ 181,840,448 =============== =============== =============== ================
See Notes to Financial Statements. 70 STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED) APRIL 30, 2003 (UNAUDITED)
LIBERTY LIBERTY LIBERTY LIBERTY LARGE CAP SMALL CAP SMALL COMPANY STRATEGIC EQUITY CORE FUND (a) FUND (b) EQUITY FUND(c) FUND (d) ---------------- -------------- --------------- ---------------- NET ASSETS: Class A $ 6,368,152 $ 8,559,302 $ 60,189 $ 86,900 ================ ============== =============== ================ Class B $ 374,777 $ 2,211,225 $ 11,644 $ 116,188 ================ ============== =============== ================ Class C $ 106,464 $ 1,324,839 $ 2,280 $ 189,283 ================ ============== =============== ================ Class G $ 34,282,913 $ 9,129,120 $ 7,827,883 $ 10,573,411 ================ ============== =============== ================ Class T $ 176,425,334 $ 114,665,555 $ 55,390,975 $ 92,722,847 ================ ============== =============== ================ Class Z $ 198,180,639 $ 586,909,650 $ 245,922,552 $ 78,151,819 ================ ============== =============== ================ SHARES OF BENEFICIAL INTEREST OUTSTANDING: Class A 609,320 670,412 5,160 10,187 ================ ============== =============== ================ Class B 36,534 178,877 1,058 13,906 ================ ============== =============== ================ Class C 10,379 107,128 207 22,678 ================ ============== =============== ================ Class G 3,369,894 745,217 712,060 1,268,194 ================ ============== =============== ================ Class T 16,938,639 9,061,344 4,753,517 10,873,656 ================ ============== =============== ================ Class Z 18,919,503 45,563,190 20,048,464 9,154,303 ================ ============== =============== ================ CLASS A: Net asset value per share (e) $ 10.45 $ 12.77 $ 11.66 $ 8.53 ================ ============== =============== ================ Maximum sales charge 5.75% 5.75% 5.75% 5.75% ================ ============== =============== ================ Maximum offering price per share(f) (net asset value per share/0.9425) $ 11.09 $ 13.55 $ 12.37 $ 9.05 ================ ============== =============== ================ CLASS B: Net asset value and offering price per share (e) $ 10.26 $ 12.36 $ 11.01 $ 8.36 ================ ============== =============== ================ CLASS C: Net asset value and offering price per share (e) $ 10.26 $ 12.37 $ 11.01 $ 8.35 ================ ============== =============== ================ CLASS G: Net asset value and offering price per share (e) $ 10.17 $ 12.25 $ 10.99 $ 8.34 ================ ============== =============== ================ CLASS T: Net asset value per share (e) $ 10.42 $ 12.65 $ 11.65 $ 8.53 ================ ============== =============== ================ Maximum sales charge 5.75% 5.75% 5.75% 5.75% ================ ============== =============== ================ Maximum offering price per share (f) (net asset value per share/0.9425) $ 11.06 $ 13.42 $ 12.36 $ 9.05 ================ ============== =============== ================ CLASS Z: Net asset value, offering and redemption price per share $ 10.47 $ 12.88 $ 12.27 $ 8.54 ================ ============== =============== ================
__________________________________ (a) Effective December 9, 2002, the Galaxy Large Cap Value Fund Prime A, Prime B, Retail B, Retail A and Trust shares were reorganized as Liberty Large Cap Core Fund (formerly known as Galaxy Growth & Income Fund) Class A, Class B, Class G, Class T and Class Z shares, respectively. Subsequently, the Fund began offering Class C shares. (b) Effective November 18, 2002, the Galaxy Small Cap Value Fund Prime A, Prime B, Retail B, Retail A and Trust shares were reorganized as Liberty Small Cap Fund Class A, Class B, Class G, Class T and Class Z shares, respectively. Subsequently, the Fund began offering Class C shares. (c) Effective November 18, 2002, the Galaxy Small Company Equity Fund Retail B, Retail A and Trust shares were reorganized as Liberty Small Company Equity Fund Class G, Class T and Class Z shares, respectively. Subsequently, the Fund began offering Class A, Class B and Class C shares. (d) Effective November 25, 2002, the Galaxy Strategic Equity Fund Retail B, Retail A and Trust shares were reorganized as Liberty Strategic Equity Fund Class G, Class T and Class Z shares, respectively. Subsequently, the Fund began offering Class A, Class B and Class C shares. (e) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. (f) On sales of $50,000 or more the offering price is reduced. See Notes to Financial Statements. 71 STATEMENTS OF OPERATIONS FOR THE SIX MONTHS ENDED APRIL 30, 2003 (UNAUDITED)
LIBERTY LIBERTY LIBERTY LIBERTY LIBERTY LIBERTY LIBERTY ASSET EQUITY EQUITY LIBERTY LARGE SMALL SMALL STRATEGIC ALLOCATION GROWTH VALUE INTERNATIONAL CAP CAP COMPANY EQUITY FUND FUND FUND EQUITY FUND CORE FUND FUND EQUITY FUND FUND ---------- ----------- ----------- ------------ ------------ ----------- ---------- ----------- INVESTMENT INCOME: Dividends (Note 2) $2,661,767 $ 6,869,772 $ 2,480,667 $ 4,331,767 $ 5,027,742 $ 3,616,255 $ 224,357 $ 2,566,757 Interest (Note 2) 5,949,187 159,170 31,556 88,301 16,014 235,671 65,842 8,872 Other Income -- -- -- -- -- -- 60,239 -- Less: foreign withholding tax (60,070) (77,902) -- (461,014) (24,008) (10,765) (1,691) (23,753) ----------- ----------- ----------- ------------ ----------- ----------- ----------- ----------- Total investment income 8,550,884 6,951,040 2,512,223 3,959,054 5,019,748 3,841,161 348,747 2,551,876 ----------- ----------- ----------- ------------ ----------- ----------- ----------- ----------- EXPENSES: Investment advisory fee (Note 4) 1,875,597 3,398,578 1,158,442 1,755,945 1,973,802 2,421,579 1,080,783 630,126 Administration fee (Note 4) 167,553 303,799 103,488 130,593 177,164 216,329 96,550 56,330 Service fee: Class A 76 180 318 77 5,923 3,447 39 77 Class B 557 486 34 66 124 1,325 13 45 Class C 32 108 7 14 45 427 2 57 Class G 165,138 137,799 37,367 11,493 89,760 21,736 20,436 23,905 Class T 443,421 546,395 288,576 96,391 422,215 268,166 130,028 205,928 Distribution fee: Class A 31 75 147 32 2,370 1,392 17 36 Class B 1,699 1,508 103 209 4 3,984 39 136 Class C 95 324 21 43 131 1,282 9 170 Class G 217,672 192,758 49,085 14,944 117,989 29,164 26,868 31,386 Pricing and bookkeeping fees (Note 4) 50,660 61,315 28,214 35,226 45,595 49,388 30,864 20,131 Transfer agent fee: (Note 4) Class A 90 77 295 29 7,341 242 51 65 Class B 244 244 45 110 84 461 24 66 Class C 18 69 9 5 28 399 4 93 Class G 111,283 175,412 40,634 31,406 57,812 19,446 30,664 23,894 Class T 204,023 345,250 187,205 119,195 183,882 128,672 121,036 116,973 Class Z 123,214 258,957 53,006 172,271 216,487 69,493 178,236 -- Trustees' fee (Note 4) 26,828 43,914 2,009 4,521 1,032 5,712 909 85 Amortization of organization expense (Note 2) -- -- -- -- -- -- -- 1,145 Custody fee 24,680 4,891 5,108 239,376 7,466 23,030 14,557 1,499 Reports to shareholders 198,957 326,254 102,904 53,137 114,584 102,348 76,386 14,908 Other expenses 48,408 70,296 56,140 66,841 62,355 71,863 63,604 30,407 ----------- ----------- ----------- ------------ ----------- ----------- ----------- ----------- Total expenses before reimbursement/waiver 3,660,276 5,868,689 2,113,157 2,731,924 3,486,193 3,439,885 1,871,119 1,157,462 ----------- ----------- ----------- ------------ ----------- ----------- ----------- ----------- Less: Custody credits -- -- (619) -- -- (1,294) (267) -- Less: Fees and expenses waived or reimbursement by Advisor (6,114) (101,957) -- (487,215) (7,898) (37,454) -- -- Less: Fees waived by Distributor: Class A (31) (75) (147) (32) (2,370) (1,392) (17) (36) Class G (69,920) (59,273) (15,110) (4,596) (36,255) (8,978) (8,259) (9,651) Class T (185,747) (224,410) (117,947) (40,755) (172,523) (113,235) (54,924) (83,921) Less: Fees waived by the Transfer Agent: Class A -- -- -- -- (8) -- -- -- Class G -- -- -- (5,240) (8,593) -- -- -- Class T -- -- -- (20,404) -- -- (12,539) (4,349) Class Z -- -- -- -- -- -- -- (4,566) ----------- ----------- ----------- ------------ ----------- ----------- ----------- ----------- Total expenses net of reimbursement 3,398,464 5,482,974 1,979,334 2,173,682 3,258,546 3,277,532 1,795,113 1,054,939 ----------- ----------- ----------- ------------ ----------- ----------- ----------- ----------- NET INVESTMENT INCOME (LOSS) 5,152,420 1,468,066 532,889 1,785,372 1,761,202 563,629 (1,446,366) 1,496,937 ----------- ----------- ----------- ------------ ----------- ----------- ----------- ----------- NET REALIZED AND UNREALIZED GAIN (LOSS)ON INVESTMENTS AND FOREIGN CURRENCY (NOTE 2): Net realized gain (loss) on investments sold (15,221,905) (18,250,421) (13,810,188) (39,493,727) 6,410,895 13,484,739 (29,495,596) (6,231,065) Net realized gain (loss) on foreign currency transactions (69,870) -- -- (173,576) -- -- -- -- Net realized gain on futures contracts 75,009 -- -- -- -- -- -- -- Net realized loss on foreign capital gains tax -- -- -- (35,087) -- -- -- -- Net change in unrealized appreciation (depreciation) on investments and foreign currency translations 17,526,952 40,519,224 26,449,883 40,895,055 (2,119,875) 26,588,720 42,248,993 (4,927,141) ----------- ----------- ----------- ------------ ------------ ----------- ----------- ----------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FUTURES CONTRACTS 2,310,186 22,268,803 12,639,695 1,192,665 4,291,020 40,073,459 12,753,397 (11,158,206) ----------- ----------- ----------- ------------ ------------ ----------- ----------- ----------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 7,462,606 $23,736,869 $13,172,584 $ 2,978,037 $ 6,052,222 $40,637,088 $11,307,031 $(9,661,269) =========== =========== =========== ============ ============ =========== =========== ===========
See Notes to Financial Statements. 72-73 spread STATEMENTS OF CHANGES IN NET ASSETS
LIBERTY ASSET ALLOCATION FUND LIBERTY EQUITY GROWTH FUND ------------------------------ --------------------------------- (UNAUDITED) (UNAUDITED) SIX MONTHS SIX MONTHS ENDED YEAR ENDED ENDED YEAR ENDED APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31, 2003 2002 2003 2002 ------------- ------------- --------------- --------------- NET ASSETS AT BEGINNING OF PERIOD $ 435,590,206 $ 626,967,716 $ 1,002,912,988 $ 1,285,373,219 ------------- ------------- --------------- --------------- INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS: Net investment income (loss) 5,152,420 9,550,438 1,468,066 1,842,652 Net realized loss on investments sold and foreign currency transactions (15,216,766) (26,364,880) (18,250,421) (95,984,198) Net change in unrealized appreciation/depreciation of investments and foreign currency translations 17,526,952 (54,121,169) 40,519,224 (145,463,165) ------------- ------------- --------------- --------------- Net increase (decrease) in net assets resulting from operations 7,462,606 (70,935,611) 23,736,869 (239,604,711) ------------- ------------- --------------- --------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income: Class A (465) (817) (123) -- Class B (2,775) (3,249) -- -- Class C (106) -- -- -- Class G (450,201) (903,651) -- -- Class T (1,915,241) (4,182,650) -- -- Class Z (2,419,417) (3,849,053) (2,326,221) -- Net realized gain on investments: Class G -- -- -- -- Class T -- -- -- -- Class Z -- -- -- -- ------------- ------------- --------------- --------------- Total distributions (4,788,205) (8,939,420) (2,326,344) -- ------------- ------------- --------------- --------------- Net increase (decrease) in net assets from share transactions (A) 24,444,767 (111,502,479) (114,843,390) (42,855,520) ------------- ------------- --------------- --------------- Net increase (decrease) in net assets 27,119,168 (191,377,510) (93,432,865) (282,460,231) ------------- ------------- --------------- --------------- NET ASSETS AT END OF PERIOD $ 462,709,374 $ 435,590,206 $ 909,480,123 $ 1,002,912,988 ============= ============= =============== =============== Undistributed (overdistributed) net investment income $ 1,479,769 $ 1,115,554 $ 949,091 $ 1,807,369 ============= ============= =============== =============== LIBERTY EQUITY VALUE FUND LIBERTY INTERNATIONAL EQUITY FUND ------------------------------- ------------------------------- (UNAUDITED) (UNAUDITED) SIX MONTHS SIX MONTHS ENDED YEAR ENDED ENDED YEAR ENDED APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31, 2003 2002 2003 2002 -------------- ------------- ------------- -------------- NET ASSETS AT BEGINNING OF PERIOD $ 307,743,416 $ 358,212,152 $ 422,189,259 $ 597,731,521 -------------- ------------- ------------- -------------- INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS: Net investment income (loss) 532,889 (831,035) 1,785,372 2,732,183 Net realized loss on investments sold and foreign currency transactions (13,810,188) (68,065,195) (39,702,390) (215,475,392) Net change in unrealized appreciation/depreciation of investments and foreign currency translations 26,449,883 (16,740,050) 40,895,055 143,822,027 -------------- ------------- ------------- -------------- Net increase (decrease) in net assets resulting from operations 13,172,584 (85,636,280) 2,978,037 (68,921,182) -------------- ------------- ------------- -------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income: Class A -- -- (309) (158) Class B -- -- (51) (3,271) Class C -- -- (1) -- Class G -- -- -- (46,997) Class T -- -- (276,228) (1,161,415) Class Z -- -- (4,085,205) (10,992,572) Net realized gain on investments: Class G -- (732,810) -- -- Class T -- (4,986,255) -- -- Class Z -- (4,800,214) -- -- -------------- ------------- ------------- -------------- Total distributions -- (10,519,279) (4,361,794) (12,204,413) -------------- ------------- ------------- -------------- Net increase (decrease) in net assets from share transactions (A) 4,955,580 45,686,823 (59,316,298) (94,416,667) -------------- ------------- ------------- -------------- Net increase (decrease) in net assets 18,128,164 (50,468,736) (60,700,055) (175,542,262) -------------- ------------- ------------- -------------- NET ASSETS AT END OF PERIOD $ 325,871,580 $ 307,743,416 $ 361,489,204 $ 422,189,259 ============== ============= ============= ============== Undistributed (overdistributed) net investment income $ 524,426 $ (8,463) $ 1,780,054 $ 4,356,476 ============== ============= ============= ============== _________________________________ (A) For details on share transactions by class, see Statement of Changes in Net Assets - Capital Stock Activity on pages 78-81. See Notes to Financial Statements. 74-75 spread
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
LIBERTY LARGE CAP CORE FUND LIBERTY SMALL CAP FUND ------------------------------ ------------------------------- (UNAUDITED) (UNAUDITED) SIX MONTHS SIX MONTHS ENDED YEAR ENDED ENDED YEAR ENDED APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31, 2003 2002 2003 2002 ------------- ------------- ------------- -------------- NET ASSETS AT BEGINNING OF PERIOD $ 552,242,992 $ 768,866,020 $ 610,202,895 $ 531,489,622 ------------- ------------- ------------- -------------- INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS: Net investment income (loss) 1,761,202 2,673,116 563,629 648,758 Net realized gain (loss) on investments sold and foreign currency transactions 6,410,895 (2,843,956) 13,484,739 37,781,019 Net change in unrealized appreciation/depreciation of investments and foreign currency translations (2,119,875) (132,810,615) 26,588,720 (69,887,913) ------------- ------------- ------------- -------------- Net increase (decrease) in net assets resulting from operations 6,052,222 (132,981,455) 40,637,088 (31,458,136) ------------- ------------- ------------- -------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income: Class A (13,094) (64) -- -- Class B (86) -- -- -- Class C (41) -- -- -- Class G (32,480) -- -- -- Class T (641,333) (264,222) -- -- Class Z (1,537,472) (2,074,328) (450,747) (445,097) Net realized gain on investments: Class A -- (2,049) (23,427) (12,287) Class B -- (3,781) (27,700) (17,051) Class C -- -- (2,462) -- Class G -- (1,681,983) (479,909) (532,460) Class T -- (8,851,728) (5,982,965) (9,651,542) Class Z -- (15,146,836) (25,553,703) (37,414,810) Distributions in excess of net investment income: Class T -- -- -- -- Class Z -- -- -- -- ------------- ------------- ------------- -------------- Total distributions (2,224,506) (28,024,991) (32,520,913) (48,073,247) ------------- ------------- ------------- -------------- Net increase (decrease) in net assets from share transactions (A) (140,332,429) (55,616,582) 104,480,621 158,244,656 ------------- ------------- ------------- -------------- Net increase (decrease) in net assets (136,504,713) (216,623,028) 112,596,796 78,713,273 ------------- ------------- ------------- -------------- NET ASSETS AT END OF PERIOD $ 415,738,279 $ 552,242,992 $ 722,799,691 $ 610,202,895 ============= ============= ============= ============== Undistributed (overdistributed) net investment income (loss) $ (144,072) $ 319,232 $ 192,990 $ 80,108 ============= ============= ============= ============== Accumulated net investment loss $ -- $ -- $ -- $ -- ============= ============= ============= ============== LIBERTY SMALL COMPANY EQUITY FUND LIBERTY STRATEGIC EQUITY FUND --------------------------------- --------------------------------- (UNAUDITED) (UNAUDITED) SIX MONTHS SIX MONTHS ENDED YEAR ENDED ENDED YEAR ENDED APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31, 2003 2002 2003 2002 -------------- ------------- ------------- -------------- NET ASSETS AT BEGINNING OF PERIOD $ 284,062,086 $ 417,936,684 $ 28,567,246 $ 113,594,701 -------------- ------------- ------------- -------------- INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS: Net investment income (loss) (1,446,366) (3,342,769) 1,496,937 237,883 Net realized gain (loss) on investments sold and foreign currency transactions (29,495,596) (93,471,017) (6,231,065) 12,886,804 Net change in unrealized appreciation/depreciation of investments and foreign currency translations 42,248,993 (2,618,304) (4,927,141) (7,411,274) -------------- ------------- ------------- -------------- Net increase (decrease) in net assets resulting from operations 11,307,031 (99,432,090) (9,661,269) 5,713,413 -------------- ------------- ------------- -------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income: Class A -- -- (361) -- Class B -- -- (97) -- Class C -- -- (5) -- Class G -- -- (23,483) -- Class T -- -- (416,295) (14,787) Class Z -- -- (549,566) (270,326) Net realized gain on investments: Class A Class B -- -- -- -- Class C -- -- -- -- Class G -- -- -- -- Class T -- -- -- (92,957) Class Z -- -- -- -- Distributions in excess of net investment income: -- -- -- -- Class T -- -- -- (321,990) Class Z -- -- -- (4,065,865) Total distributions -- -- (989,807) (4,765,925) -------------- ------------- ------------- -------------- Net increase (decrease) in net assets from share transactions (A) 13,846,406 (34,442,508) 163,924,278 (85,974,943) -------------- ------------- ------------- -------------- Net increase (decrease) in net assets 25,153,437 (133,874,598) 153,273,202 (85,027,455) -------------- ------------- ------------- -------------- NET ASSETS AT END OF PERIOD $ 309,215,523 $ 284,062,086 $ 181,840,448 $ 28,567,246 ============== ============= ============= ============== Undistributed (overdistributed) net investment income (loss) $ -- $ -- $ 539,968 $ 32,838 ============== ============= ============= ============== Accumulated net investment loss $ (1,454,013) $ (7,647) $ -- $ -- ============== ============= ============= ============== _______________________________ (A) For details on share transactions by class, see Statement of Changes in Net Assets - Capital Stock Activity on pages 82-85. See Notes to Financial Statements. 76-77
STATEMENTS OF CHANGES IN NET ASSETS -- CAPITAL STOCK ACTIVITY
LIBERTY ASSET ALLOCATION FUND LIBERTY EQUITY GROWTH FUND ------------------------------- ------------------------------- (UNAUDITED) (UNAUDITED) SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31, 2003 (a) 2002 2003 (b) 2002 -------------- ------------- ------------- -------------- SHARE TRANSACTIONS: Class A: Net proceeds from sales of shares $ 100,260 $ 1,942 $ 289,398 $ 14,224 Issued to shareholders in reinvestment of dividends. 372 643 122 -- Cost of shares repurchased (8,955) (12,593) (18,681) (561,125) -------------- ------------- ------------- -------------- Net increase (decrease) $ 91,677 $ (10,008) $ 270,839 $ (546,901) -------------- ------------- ------------- -------------- Class B: Net proceeds from sales of shares $ 629,607 $ 2,002 $ 427,569 $ 1,377 Issued to shareholders in reinvestment of dividends. 2,626 3,147 -- -- Cost of shares repurchased (33,797) (69,201) (46,846) (52,491) -------------- ------------- ------------- -------------- Net increase (decrease) $ 598,436 $ (64,052) $ 380,723 $ (51,114) -------------- ------------- ------------- -------------- Class C: Net proceeds from sales of shares $ 105,017 $ -- $ 308,987 $ -- Issued to shareholders in reinvestment of dividends. 106 -- -- -- Cost of shares repurchased -- -- (40,499) -- -------------- ------------- ------------- -------------- Net increase $ 105,123 $ -- $ 268,488 $ -- -------------- ------------- ------------- -------------- Class G: Net proceeds from sales of shares $ 531,866 $ 4,078,242 $ 1,414,843 $ 7,699,620 Issued to shareholders in reinvestment of dividends. 439,391 882,934 -- -- Cost of shares repurchased (11,434,578) (24,005,581) (7,944,407) (18,399,523) -------------- ------------- ------------- -------------- Net increase (decrease) $ (10,463,321) $ (19,044,405) $ (6,529,564) $ (10,699,903) -------------- ------------- ------------- -------------- Class T: Net proceeds from sales of shares $ 4,015,048 $ 23,448,832 $ 18,411,675 $ 62,313,532 Issued to shareholders in reinvestment of dividends. 1,859,823 4,060,095 -- -- Cost of shares repurchased (26,912,231) (82,540,616) (37,935,075) (109,994,675) -------------- ------------- ------------- -------------- Net increase (decrease) $ (21,037,360) $ (55,031,689) $ (19,523,400) $ (47,681,143) -------------- ------------- ------------- -------------- Class Z: Net proceeds from sales of shares $ 13,615,286 $ 38,817,973 $ 77,418,779 $ 208,441,606 Issued in connection with acquisition (Note 1) 127,523,327 -- -- -- Issued to shareholders in reinvestment of dividends. 2,075,599 3,482,666 1,331,649 -- Cost of shares repurchased (88,064,000) (79,652,964) (168,460,904) (192,318,065) -------------- ------------- ------------- -------------- Net increase (decrease) $ 55,150,212 $ (37,352,325) $ (89,710,476) $ 16,123,541 -------------- ------------- ------------- -------------- Total share transactions $ 24,444,767 $(111,502,479) $(114,843,390) $ (42,855,520) -------------- ------------- ------------- -------------- LIBERTY EQUITY VALUE FUND LIBERTY INTERNATIONAL EQUITY FUND ------------------------------- ------------------------------- (UNAUDITED) (UNAUDITED) SIX MONTHS SIX MONTHS ENDED YEAR ENDED ENDED YEAR ENDED APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31, 2003 (c) 2002 2003 (d) 2002 -------------- ------------- ------------- -------------- SHARE TRANSACTIONS: Class A: Net proceeds from sales of shares $ 1,673,917 $ -- $ 579,909 $ 500 Issued to shareholders in reinvestment of dividends. -- -- 79 158 Cost of shares repurchased (1,624,135) -- (388,379) (773) -------------- ------------- ------------- -------------- Net increase (decrease) $ 49,782 $ -- $ 191,609 $ (115) -------------- ------------- ------------- -------------- Class B: Net proceeds from sales of shares $ 155,086 $ -- $ 124,952 $ -- Issued to shareholders in reinvestment of dividends. -- -- 47 904 Cost of shares repurchased (60,064) -- (99,819) (169,123) -------------- ------------- ------------- -------------- Net increase (decrease) $ 95,022 $ -- $ 25,180 $ (168,219) -------------- ------------- ------------- -------------- Class C: Net proceeds from sales of shares $ 93,781 $ -- $ 705,483 $ -- Issued to shareholders in reinvestment of dividends. -- -- -- -- Cost of shares repurchased (88,576) -- (690,926) -- -------------- ------------- ------------- -------------- Net increase $ 5,205 $ -- $ 14,557 $ -- -------------- ------------- ------------- -------------- Class G: Net proceeds from sales of shares $ 153,695 $ 1,530,736 $ 46,069 $ 335,436 Issued to shareholders in reinvestment of dividends. -- 730,490 -- 46,346 Cost of shares repurchased (3,220,586) (5,357,577) (420,006) (1,400,567) -------------- ------------- ------------- -------------- Net increase (decrease) $ (3,066,891) $ (3,096,351) $ (373,937) $ (1,018,785) -------------- ------------- ------------- -------------- Class T: Net proceeds from sales of shares $ 2,801,760 $ 18,997,313 $ 57,969,821 $ 393,268,992 Issued to shareholders in reinvestment of dividends. -- 4,923,064 267,641 1,067,845 Cost of shares repurchased (12,205,088) (42,048,389) (62,935,407) (410,600,585) -------------- ------------- ------------- -------------- Net increase (decrease) $ (9,403,328) $ (18,128,012) $ (4,697,945) $ (16,263,748) -------------- ------------- ------------- -------------- Class Z: Net proceeds from sales of shares $ 52,417,959 $ 103,359,201 $ 120,125,439 $ 559,110,349 Issued in connection with acquisition (Note 1) -- -- -- -- Issued to shareholders in reinvestment of dividends. -- 3,849,192 1,158,531 3,916,708 Cost of shares repurchased (35,142,169) (40,297,207) (175,759,732) (639,992,857) -------------- ------------- ------------- -------------- Net increase (decrease) $ 17,275,790 $ 66,911,186 $ (54,475,762) $ (76,965,800) -------------- ------------- ------------- -------------- Total share transactions $ 4,955,580 $ 45,686,823 $ (59,316,298) $ (94,416,667) -------------- ------------- ------------- -------------- ______________________________ (a) Effective November 18, 2002, the Galaxy Asset Allocation Fund Prime A, Prime B, Retail B, Retail A and Trust shares were reorganized as Liberty Asset Allocation Fund Class A, Class B, Class G, Class T and Class Z shares, respectively. Subsequently, the Fund began offering Class C shares. (b) Effective November 18, 2002, the Galaxy Equity Growth Fund Prime A, Prime B, Retail B, Retail A and Trust shares were reorganized as Liberty Equity Growth Fund Class A, Class B, Class G, Class T and Class Z shares, respectively. Subsequently, the Fund began offering Class C shares. (c) Effective November 25, 2002, the Galaxy Equity Value Fund Retail B, Retail A and Trust shares were reorganized as Liberty Equity Value Fund Class G, Class T and Class Z shares, respectively. Subsequently, the Fund began offering Class A, Class B and Class C shares. (d) Effective November 18, 2002, the Galaxy International Equity Fund Prime A, Prime B, Retail B, Retail A and Trust shares were reorganized as Liberty International Equity Fund Class A, Class B, Class G, Class T and Class Z shares, respectively. Subsequently, the Fund began offering Class C shares. See Notes to Financial Statements. 78-79 spread
STATEMENTS OF CHANGES IN NET ASSETS-- CAPITAL STOCK ACTIVITY (CONTINUED)
LIBERTY ASSET ALLOCATION LIBERTY EQUITY LIBERTY EQUITY VALUE LIBERTY INTERNATIONAL FUND GROWTH FUND FUND EQUITY FUND -------------------------- ------------------------ ------------------------ ------------------------- (UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED) SIX MONTHS SIX MONTHS SIX MONTHS SIX MONTHS ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31, 2003 (a) 2002 2003 (b) 2002 2003 (c) 2002 2003 (d) 2002 ------------- ----------- ----------- ----------- ----------- ----------- ----------- ------------ OTHER INFORMATION: SHARE TRANSACTIONS: Class A: Sold 7,991 153 18,294 675 167,763 -- 63,652 43 Issued to shareholders in reinvestment of dividends 30 46 8 -- -- -- 9 14 Repurchased (702) (877) (1,169) (31,158) (161,567) -- (42,500) (79) Net increase ------------- ----------- ----------- ----------- ----------- ----------- ----------- ------------ (decrease) 7,319 (678) 17,133 (30,483) 6,196 -- 21,161 (22) ------------- ----------- ------------ ----------- ----------- ----------- ----------- ------------- Class B: Sold 49,852 132 27,605 76 16,668 -- 14,048 -- Issued to shareholders in reinvestment of dividends 211 226 -- -- -- -- 5 79 Repurchased (2,701) (4,930) (3,010) (2,768) (6,179) -- (11,260) (19,410) Net increase ------------- ----------- ----------- ----------- ----------- ----------- ----------- ------------ (decrease) 47,362 (4,572) 24,595 (2,692) 10,489 -- 2,793 (19,331) ------------- ----------- ----------- ----------- ----------- ----------- ----------- ------------ Class C: Sold 8,334 -- 20,274 -- 10,255 -- 78,769 -- Issued to shareholders in reinvestment of dividends 8 -- -- -- -- -- -- -- Repurchased -- -- (2,626) -- (9,436) -- (77,017) -- ------------- ----------- ----------- ----------- ----------- ----------- ----------- ------------ Net increase 8,342 -- 17,648 -- 819 -- 1,752 -- ------------- ----------- ----------- ----------- ----------- ----------- ----------- ------------ Class G: Sold 41,748 280,333 94,826 402,662 16,693 122,965 5,129 29,664 Issued to shareholders in reinvestment of dividends 34,822 63,424 -- -- -- 56,061 -- 4,075 Repurchased (898,365) (1,754,424) (535,434) (1,070,412) (347,889) (485,678) (46,854) (130,389) ------------- ----------- ----------- ----------- ----------- ----------- ----------- ------------ Net decrease (821,795) (1,410,667) (440,608) (667,750) (331,196) (306,652) (41,725) (96,650) ------------- ----------- ----------- ----------- ----------- ----------- ----------- ------------ Class T: Sold 313,911 1,681,657 1,142,911 3,309,526 289,755 1,461,025 6,345,159 36,599,906 Issued to shareholders in reinvestment of dividends 146,552 287,807 -- -- -- 365,484 29,476 93,635 Repurchased (2,113,368) (5,963,835) (2,393,809) (5,906,627) (1,279,928) (3,436,236) (6,883,161) (37,921,896) ------------- ----------- ----------- ----------- ----------- ----------- ----------- ------------ Net decrease (1,652,905) (3,994,371) (1,250,898) (2,597,101) (990,173) (1,609,727) (508,526) (1,228,355) ------------- ----------- ----------- ----------- ----------- ----------- ----------- ------------ Class Z: Sold 1,068,550 2,688,275 4,845,757 10,670,158 5,350,726 8,229,129 12,972,051 51,501,696 Issued in connection with acquisition (Note 1) 9,749,490 -- -- -- -- -- -- -- Issued to shareholders in reinvestment of dividends 164,711 246,822 83,280 -- -- 281,992 125,382 339,109 Repurchased (7,002,243) (5,622,405) (10,468,731) (10,051,097) (3,574,294) (3,316,907) 19,122,788) (58,357,513) Net increase ------------- ----------- ----------- ----------- ----------- ----------- ----------- ------------ (decrease) 3,980,508 (2,687,308) (5,539,694) 619,061 1,776,432 5,194,214 6,025,355) (6,516,708) ------------- ----------- ----------- ----------- ----------- ----------- ----------- ------------
________________________________ (a) Effective November 18, 2002, the Galaxy Asset Allocation Fund Prime A, Prime B, Retail B, Retail A and Trust shares were reorganized as Liberty Asset Allocation Fund Class A, Class B, Class G, Class T and Class Z shares, respectively. Subsequently, the Fund began offering Class C shares. (b) Effective November 18, 2002, the Galaxy Equity Growth Fund Prime A, Prime B, Retail B, Retail A and Trust shares were reorganized as Liberty Equity Growth Fund Class A, Class B, Class G, Class T and Class Z shares, respectively. Subsequently, the Fund began offering Class C shares. (c) Effective November 25, 2002, the Galaxy Equity Value Fund Retail B, Retail A and Trust shares were reorganized as Liberty Equity Value Fund Class G, Class T and Class Z shares, respectively. Subsequently, the Fund began offering Class A, Class B and Class C shares. (d) Effective November 18, 2002, the Galaxy International Equity Fund Prime A, Prime B, Retail B, Retail A and Trust shares were reorganized as Liberty International Equity Fund Class A, Class B, Class G, Class T and Class Z shares, respectively. Subsequently, the Fund began offering Class C shares. (e) Rounds to less than $1. See Notes to Financial Statements. 80-81 STATEMENTS OF CHANGES IN NET ASSETS -- CAPITAL STOCK ACTIVITY (CONTINUED)
LIBERTY LARGE CAP CORE FUND LIBERTY SMALL CAP FUND ------------------------------- ------------------------------- (UNAUDITED) (UNAUDITED) SIX MONTHS SIX MONTHS APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31, 2003 (a) 2002 2003 (b) 2002 -------------- ------------- ------------- -------------- SHARE TRANSACTIONS: Class A: Net proceeds from sales of shares $ 417,677 $ 128 $ 8,648,507 $ 157,443 Issued in connection with acquisition (Note 1) 6,454,752 -- -- -- Issued to shareholders in reinvestment of dividends. 12,557 466 21,913 9,710 Cost of shares repurchased (565,322) (40,839) (638,257) (105,884) -------------- ------------- ------------- -------------- Net increase (decrease) $ 6,319,664 $ (40,245) $ 8,032,163 $ 61,269 -------------- ------------- ------------- -------------- Class B: Net proceeds from sales of shares $ 324,106 $ -- $ 1,954,170 $ 132,259 Issued to shareholders in reinvestment of dividends. 86 3,106 26,282 17,051 Cost of shares repurchased (19,293) (31,132) (98,533) (33,156) -------------- ------------- ------------- -------------- Net increase (decrease) $ 304,899 $ (28,026) $ 1,881,919 $ 116,154 -------------- ------------- ------------- -------------- Class C: Net proceeds from sales of shares $ 223,117 $ -- $ 1,346,988 $ -- Issued to shareholders in reinvestment of dividends. 41 -- 2,361 -- Cost of shares repurchased (121,881) -- (77,498) -- -------------- ------------- ------------- -------------- Net increase $ 101,277 $ -- $ 1,271,851 $ -- -------------- ------------- ------------- -------------- Class G: Net proceeds from sales of shares $ 289,346 $ 1,998,005 $ 273,996 $ 6,235,998 Issued in connection with acquisition (Note 1) 12,420,359 -- -- -- Issued to shareholders in reinvestment of dividends. 30,909 1,654,365 465,333 526,290 Cost of shares repurchased (10,654,950) (10,728,602) (654,263) (1,509,331) -------------- ------------- ------------- -------------- Net increase (decrease) $ 2,085,664 $ (7,076,232) $ 85,066 $ 5,252,957 -------------- ------------- ------------- -------------- Class T: Net proceeds from sales of shares $ 8,612,027 $ 33,029,033 $ 21,051,491 $ 92,202,077 Issued in connection with acquisition (Note 1) -- -- -- -- Issued to shareholders in reinvestment of dividends. 669,335 8,936,751 5,680,741 9,395,064 Cost of shares repurchased (19,213,281) (70,008,875) (28,046,533) (70,792,166) -------------- ------------- ------------- -------------- Net increase (decrease) $ (9,931,919) $ (28,043,091) $ (1,314,301) $ 30,804,975 -------------- ------------- ------------- -------------- Class Z: Net proceeds from sales of shares $ 26,645,466 $ 100,632,122 $ 148,558,423 $ 283,345,487 Issued in connection with acquisition (Note 1) 69,340,646 -- -- -- Redemption-in-kind (e) -- -- -- -- Issued to shareholders in reinvestment of dividends. 771,569 15,587,396 18,622,287 28,972,951 Cost of shares repurchased (235,969,695) (136,648,506) (72,656,787) (190,309,137) -------------- ------------- ------------- -------------- Net increase (decrease) $ (139,212,014) $ (20,428,988) $ 94,523,923 $ 122,009,301 -------------- ------------- ------------- -------------- Total share transactions $ (140,332,429) $ (55,616,582) $ 104,480,621 $ 158,244,656 -------------- ------------- ------------- -------------- LIBERTY SMALL COMPANY EQUITY FUND LIBERTY STRATEGIC EQUITY FUND --------------------------------- --------------------------------- (UNAUDITED) (UNAUDITED) SIX MONTHS SIX MONTHS ENDED YEAR ENDED ENDED YEAR ENDED APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31, 2003 (c) 2002 2003 (d) 2002 -------------- ------------- ------------- -------------- SHARE TRANSACTIONS: Class A: Net proceeds from sales of shares $ 143,018 $ -- $ 163,279 $ -- Issued in connection with acquisition (Note 1) -- -- -- -- Issued to shareholders in reinvestment of dividends. -- -- 203 -- Cost of shares repurchased (85,163) -- (68,462) -- -------------- ------------- ------------- -------------- Net increase (decrease) $ 57,855 $ -- $ 95,020 $ -- -------------- ------------- ------------- -------------- Class B: Net proceeds from sales of shares $ 18,739 $ -- $ 255,280 $ -- Issued to shareholders in reinvestment of dividends. -- -- 78 -- Cost of shares repurchased (5,808) -- (148,051) -- -------------- ------------- ------------- -------------- Net increase (decrease) $ 12,931 $ -- $ 107,307 $ -- -------------- ------------- ------------- -------------- Class C: Net proceeds from sales of shares $ 54,678 $ -- $ 278,828 $ -- Issued to shareholders in reinvestment of dividends. -- -- 2 -- Cost of shares repurchased (51,883) -- (100,380) -- -------------- ------------- ------------- -------------- Net increase $ 2,795 $ -- $ 178,450 $ -- -------------- ------------- ------------- -------------- Class G: Net proceeds from sales of shares $ 124,954 $ 5,343,587 $ 105,744 $ 607,331 Issued in connection with acquisition (Note 1) -- -- 10,032,885 -- Issued to shareholders in reinvestment of dividends. -- -- 23,005 92,335 Cost of shares repurchased (1,673,017) (7,654,692) (1,115,215) (449,690) -------------- ------------- ------------- -------------- Net increase (decrease) $ (1,548,063) $ (2,311,105) $ 9,046,419 $ 249,976 -------------- ------------- ------------- -------------- Class T: $ 16,091,155 $ 103,731,584 $ 695,070 $ 1,956,588 Net proceeds from sales of shares -- -- 101,580,964 -- Issued in connection with acquisition (Note 1) -- -- 401,549 334,609 Issued to shareholders in reinvestment of dividends. (20,215,302) (111,618,506) (10,907,179) (2,756,097) Cost of shares repurchased -------------- ------------- ------------- -------------- $ (4,124,147) $ (7,886,922) $ 91,770,404 $ (464,900) Net increase (decrease) -------------- ------------- ------------- -------------- Class Z: $ 55,350,471 $ 81,621,271 $ 11,827,322 $ 9,952,015 Net proceeds from sales of shares -- -- 76,942,534 -- Issued in connection with acquisition (Note 1) -- -- -- (93,827,039) Redemption-in-kind (e) -- -- 132,643 3,813,095 Issued to shareholders in reinvestment of dividends. (35,905,436) (105,865,752) (26,175,821) (5,698,090) Cost of shares repurchased -------------- ------------- ------------- -------------- $ 19,445,035 $ (24,244,481) $ 62,726,678 $ (85,760,019) Net increase (decrease) -------------- ------------- ------------- -------------- $ 13,846,406 $ (34,442,508) $ 163,924,278 $ (85,974,943) Total share transactions -------------- ------------- ------------- -------------- _______________________________ (a) Effective December 9, 2002, the Galaxy Large Cap Value Fund Prime A, Prime B, Retail B, Retail A and Trust shares were reorganized as Liberty Large Cap Core Fund (formerly known as Galaxy Growth & Income Fund) Class A, Class B, Class G, Class T and Class Z shares, respectively. Subsequently, the Fund began offering Class C shares. (b) Effective November 18, 2002, the Galaxy Small Cap Value Fund Prime A, Prime B, Retail B, Retail A and Trust shares were reorganized as Liberty Small Cap Fund Class A, Class B, Class G, Class T and Class Z shares, respectively. Subsequently, the Fund began offering Class C shares. (c) Effective November 18, 2002, the Galaxy Small Company Equity Fund Retail B, Retail A and Trust shares were reorganized as Liberty Small Company Equity Fund Class G, Class T and Class Z shares, respectively. Subsequently, the Fund began offering Class A, Class B and Class C shares. (d) Effective November 25, 2002, the Galaxy Strategic Equity Fund Retail B, Retail A and Trust shares were reorganized as Liberty Strategic Equity Fund Class G, Class T and Class Z shares, respectively. Subsequently, the Fund began offering Class A, Class B and Class C shares. (e) The Strategic Equity Fund had a redemption-in-kind on January 11, 2002 which resulted in a redemption out of the Fund of $93,827,039. The redemption is comprised of securities and cash in the amounts of $83,530,666 and $10,296,373, respectively. See Notes to Financial Statements. 82-83 spread
STATEMENTS OF CHANGES IN NET ASSETS -- CAPITAL STOCK ACTIVITY (CONTINUED)
LIBERTY LARGE CAP CORE FUND LIBERTY SMALL CAP FUND ------------------------------- ------------------------------- (UNAUDITED) (UNAUDITED) SIX MONTHS SIX MONTHS ENDED YEAR ENDED ENDED YEAR ENDED APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31, 2003 (a) 2002 2003 (b) 2002 -------------- ------------- ------------- -------------- OTHER INFORMATION: SHARE TRANSACTIONS: Class A: Sold 40,805 10 705,453 11,215 Issued in connection with acquisition (Note 1) 621,521 -- -- -- Issued to shareholders in reinvestment of dividends. 1,312 35 1,737 683 Repurchased (55,826) (3,221) (53,367) (7,291) -------------- ------------- ------------- -------------- Net increase (decrease) 607,812 (3,176) 653,823 4,607 -------------- ------------- ------------- -------------- Class B: Sold 32,860 -- 162,172 9,728 Issued to shareholders in reinvestment of dividends. 9 237 2,142 1,222 Repurchased (1,931) (3,283) (8,376) (2,347) -------------- ------------- ------------- -------------- Net increase (decrease) 30,938 (3,046) 155,938 8,603 -------------- ------------- ------------- -------------- Class C: Sold 22,725 -- 113,492 -- Issued to shareholders in reinvestment of dividends. 5 -- 192 -- Repurchased (12,351) -- (6,556) -- -------------- ------------- ------------- -------------- Net increase 10,379 -- 107,128 -- -------------- ------------- ------------- -------------- Class G: Sold 29,522 162,505 22,787 429,423 Issued in connection with acquisition (Note 1) 1,226,272 -- -- -- Issued to shareholders in reinvestment of dividends. 3,352 126,869 38,236 38,027 Repurchased (1,086,225) (973,850) (55,979) (111,919) -------------- ------------- ------------- -------------- Net increase (decrease) 172,921 (684,476) 5,044 355,531 -------------- ------------- ------------- -------------- Class T: Sold 856,629 2,708,325 1,656,163 6,479,808 Issued in connection with acquisition (Note 1) -- -- -- -- Issued to shareholders in reinvestment of dividends. 67,414 675,947 453,371 665,372 Repurchased (1,919,528) (5,908,323) (2,247,166) (5,121,259) -------------- ------------- ------------- -------------- Net increase (decrease) (995,485) (2,524,051) (137,632) 2,023,921 -------------- ------------- ------------- -------------- Class Z: Sold 2,634,951 7,884,391 11,807,379 19,254,421 Issued in connection with acquisition (Note 1) 6,658,543 -- -- -- Redemption-in-kind -- -- -- -- Issued to shareholders in reinvestment of dividends. 74,470 1,177,076 1,461,938 2,024,954 Repurchased (24,143,890) (11,419,815) (5,769,992) (13,389,656) -------------- ------------- ------------- -------------- Net increase (decrease) (14,775,926) (2,358,348) 7,499,325 7,889,719 -------------- ------------- ------------- -------------- LIBERTY SMALL COMPANY EQUITY FUND LIBERTY STRATEGIC EQUITY FUND --------------------------------- ------------------------------- (UNAUDITED) (UNAUDITED) SIX MONTHS SIX MONTHS ENDED YEAR ENDED ENDED YEAR ENDED APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31, 2003 (c) 2002 2003 (d) 2002 -------------- ------------- ------------- -------------- OTHER INFORMATION: SHARE TRANSACTIONS: Class A: Sold 12,990 -- 18,985 -- Issued in connection with acquisition (Note 1) -- -- -- -- Issued to shareholders in reinvestment of dividends. -- -- 26 -- Repurchased (7,830) -- (8,824) -- -------------- ------------- ------------- -------------- Net increase (decrease) 5,160 -- 10,187 -- -------------- ------------- ------------- -------------- Class B: Sold 1,646 -- 30,911 -- Issued to shareholders in reinvestment of dividends. -- -- 10 -- Repurchased (588) -- (17,015) -- -------------- ------------- ------------- -------------- Net increase (decrease) 1,058 -- 13,906 -- -------------- ------------- ------------- -------------- Class C: Sold 4,992 -- 34,757 -- Issued to shareholders in reinvestment of dividends. -- -- --(e) -- Repurchased (4,785) -- (12,079) -- -------------- ------------- ------------- -------------- Net increase 207 -- 22,678 -- -------------- ------------- ------------- -------------- Class G: Sold 11,749 358,543 12,791 58,075 Issued in connection with acquisition (Note 1) -- -- 1,137,552 -- Issued to shareholders in reinvestment of dividends. -- -- 2,918 8,802 Repurchased (158,672) (561,965) (135,419) (48,228) -------------- ------------- ------------- -------------- Net increase (decrease) (146,923) (203,422) 1,017,842 18,649 -------------- ------------- ------------- -------------- Class T: Sold 1,383,749 7,332,857 81,792 184,929 Issued in connection with acquisition (Note 1) -- -- 11,278,336 -- Issued to shareholders in reinvestment of dividends. -- -- 49,801 31,497 Repurchased (1,753,270) (7,849,704) (1,306,126) (285,078) -------------- ------------- ------------- -------------- Net increase (decrease) (369,521) (516,847) 10,103,803 (68,652) -------------- ------------- ------------- -------------- Class Z: 4,653,405 5,263,829 1,370,675 985,895 Sold -- -- 8,539,200 -- Issued in connection with acquisition (Note 1) -- -- -- (8,728,097) Redemption-in-kind -- -- 16,373 356,985 Issued to shareholders in reinvestment of dividends. (3,038,944) (7,195,424) (3,097,381) (552,015) Repurchased -------------- ------------- ------------- -------------- 1,614,461 (1,931,595) 6,828,867 (7,937,232) Net increase (decrease) -------------- ------------- ------------- -------------- ______________________________ (a) Effective December 9, 2002, the Galaxy Large Cap Value Fund Prime A, Prime B, Retail B, Retail A and Trust shares were reorganized as Liberty Large Cap Core Fund (formerly known as Galaxy Growth & Income Fund) Class A, Class B, Class G, Class T and Class Z shares, respectively. Subsequently, the Fund began offering Class C shares. (b) Effective November 18, 2002, the Galaxy Small Cap Value Fund Prime A, Prime B, Retail B, Retail A and Trust shares were reorganized as Liberty Small Cap Fund Class A, Class B, Class G, Class T and Class Z shares, respectively. Subsequently, the Fund began offering Class C shares. (c) Effective November 18, 2002, the Galaxy Small Company Equity Fund Retail B, Retail A and Trust shares were reorganized as Liberty Small Company Equity Fund Class G, Class T and Class Z shares, respectively. Subsequently, the Fund began offering Class A, Class B and Class C shares. (d) Effective November 25, 2002, the Galaxy Strategic Equity Fund Retail B, Retail A and Trust shares were reorganized as Liberty Strategic Equity Fund Class G, Class T and Class Z shares, respectively. Subsequently, the Fund began offering Class A, Class B and Class C shares. (e) Rounds to less than $1. See Notes to Financial Statements. 84-85
LIBERTY ASSET ALLOCATION FUND FINANCIAL HIGHLIGHTS SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED) SIX MONTHS ENDED YEAR ENDED OCTOBER 31, APRIL 30, ---------------------------------------------------------------------- CLASS A SHARES 2003 (a) 2002 2001 2000 1999 (b) ------------- ------------ ------------- ------------ ------------- Net Asset Value, Beginning of Period $ 12.86 $ 14.95 $ 18.77 $ 17.73 $ 16.95 ------------- ------------ ------------- ------------ ------------- Income from Investment Operations: Net investment income(c) 0.13(d) 0.26(e) 0.34(d) 0.39(d) 0.44 Net realized and unrealized gain (loss) on investments 0.18 (2.12)(e) (3.06) 1.36 1.17 ------------- ------------ ------------- ------------ ------------- Total from Investment Operations 0.31 (1.86) (2.72) 1.75 1.61 ------------- ------------ ------------- ------------ ------------- Less Distributions Declared to Shareholders: From net investment income (0.12) (0.23) (0.36) (0.40) (0.40) From net realized gains -- -- (0.74) (0.31) (0.43) ------------- ------------ ------------- ------------ ------------- Total Distributions Declared to Shareholders (0.12) (0.23) (1.10) (0.71) (0.83) ------------- ------------ ------------- ------------ ------------- Net Asset Value, End of Period $ 13.05 $ 12.86 $ 14.95 $ 18.77 $ 17.73 ============= ============ ============= ============ ============= Total Return(f)(g) 2.48%(h) (12.53)% (15.08)% 10.15% 9.72% ============= ============ ============= ============ ============= Ratios to Average Net Assets/Supplemental Data: Expenses(i) 1.50%(j) 1.40% 1.26% 1.15% 1.16% Net investment income(i) 2.03%(j) 1.73%(e) 2.07% 2.15% 2.27% Waiver/reimbursement --%(j)(k) 0.13% 0.12% 0.15% 0.13% Portfolio turnover rate 146%(h) 40% 65% 59% 135% Net assets, end of period (000's) $ 139 $ 43 $ 60 $ 186 $ 238
_______________________________________ (a) On November 18, 2002, the Galaxy Asset Allocation Fund, Prime A shares were redesignated Liberty Asset Allocation Fund, Class A shares. (b) The Fund began offering Prime A shares on November 1, 1998. (c) Net investment income per share before reimbursement of certain expenses for the six months ended April 30, 2003 and the years ended October 31, 2002, 2001, 2000 and 1999 was $0.13, $0.24, $0.33, $0.37 and $0.38, respectively. (d) Per share data was calculated using average shares outstanding during the period. (e) The Trust adopted the provisions of the AICPA Audit Guide for Investment Companies effective November 1, 2001. The effect of the changes for the year ended October 31, 2002 on the net investment income per share, net realized and unrealized gain per share and the net ratio of net investment income to average net assets is $(0.01), $0.01 and (0.05)%, respectively. (f) Total return at net asset value assuming all distributions reinvested and no initial sales charge or contingent deferred sales charge. (g) Had the Advisor and/or any of its affiliates not waived or reimbursed a portion of expenses, total return would have been reduced. (h) Not annualized. (i) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (j) Annualized. (k) Rounds to less than 0.01%. See Notes to Financial Statements. 86 LIBERTY ASSET ALLOCATION FUND FINANCIAL HIGHLIGHTS (CONTINUED) SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED) SIX MONTHS ENDED YEAR ENDED OCTOBER 31, APRIL 30, ---------------------------------------------------------------------- CLASS B SHARES 2003 (a) 2002 2001 2000 1999 (b) ------------- ------------ ------------- ------------ ------------- Net Asset Value, Beginning of Period $ 12.85 $ 14.93 $ 18.75 $ 17.71 $ 16.95 ------------- ------------ ------------- ------------ ------------- Income from Investment Operations: Net investment income(c) 0.09(d) 0.14(e) 0.22(d) 0.26(d) 0.29 Net realized and unrealized (gain) loss on investments 0.20 (2.08)(e) (3.06) 1.35 1.19 ------------- ------------ ------------- ------------ ------------- Total from Investment Operations 0.29 (1.94) (2.84) 1.61 1.48 ------------- ------------ ------------- ------------ ------------- Less Distributions Declared to Shareholders: From net investment income (0.09) (0.14) (0.24) (0.26) (0.29) From net realized gains -- -- (0.74) (0.31) (0.43) ------------- ------------ ------------- ------------ ------------- Total Distributions Declared to Shareholders (0.09) (0.14) (0.98) (0.57) (0.72) ------------- ------------ ------------- ------------ ------------- Net Asset Value, End of Period $ 13.05 $ 12.85 $ 14.93 $ 18.75 $ 17.71 ============= ============ ============= ============ ============= Total Return(f)(g) 2.25%(h) (13.06)% (15.68)% 9.29% 8.91% ============= ============ ============= ============ ============= Ratios to Average Net Assets/Supplemental Data: Expenses(i) 2.06%(j) 2.06% 1.99% 1.89% 1.90% Net investment income(i) 1.45%(j) 1.07%(e) 1.34% 1.41% 1.53% Waiver/reimbursement --%(j)(k) --% 0.04% 0.17% 0.18% Portfolio turnover rate 146%(h) 40% 65% 59% 135% Net assets, end of period (000's) $ 899 $ 276 $ 389 $ 526 $ 519
_______________________________________ (a) On November 18, 2002, the Galaxy Asset Allocation Fund, Prime B shares were redesignated Liberty Asset Allocation Fund, Class B shares. (b) The Fund began offering Prime B shares on November 1, 1998. (c) Net investment income per share before reimbursement of certain expenses for the six months ended April 30, 2003 and the years ended October 31, 2002, 2001, 2000 and 1999 was $0.09, $0.14, $0.22, $0.23 and $0.26, respectively (d) Per share data was calculated using average shares outstanding during the period. (e) The Trust adopted the provisions of the AICPA Audit Guide for Investment Companies effective November 1, 2001. The effect of the changes for the year ended October 31, 2002 on the net investment income per share, net realized and unrealized gain per share and the net ratio of net investment income to average net assets is $(0.01), $0.01 and (0.05)%, respectively. (f) Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge. (g) Had the Advisor and/or any of its affiliates not waived or reimbursed a portion of expenses, total return would have been reduced. (h) Not annualized. (i) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (j) Annualized. (k) Rounds to less than 0.01%. See Notes to Financial Statements. 87 LIBERTY ASSET ALLOCATION FUND FINANCIAL HIGHLIGHTS (CONTINUED) SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD IS AS FOLLOWS: (UNAUDITED) PERIOD ENDED APRIL 30, CLASS C SHARES 2003 (a) --------------- Net Asset Value, Beginning of Period $ 13.08 --------------- Income from Investment Operations: Net investment income(b)(c) 0.09 Net realized and unrealized gain on investments (0.06) --------------- Total from Investment Operations 0.03 --------------- Less Distributions Declared to Shareholders: From net investment income (0.06) --------------- Net Asset Value, End of Period $ 13.05 =============== Total Return(d)(e)(f) 0.23% =============== Ratios to Average Net Assets/Supplemental Data: Expenses(g)(h) 2.09% Net investment income(g)(h) 1.64% Waiver/reimbursement(h) --%(i) Portfolio turnover rate(e) 146% Net assets, end of period (000's) $ 109 ______________________________________ (a) Class C shares were initially offered on November 18, 2002. Per share data and total return reflect activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Net investment income per share before reimbursement of certain expenses for the period ended April 30, 2003 was $0.09. (d) Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge. (e) Not annualized. (f) Had the Advisor and/or any of its affiliates not waived or reimbursed a portion of expenses, total return would have been reduced. (g) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (h) Annualized. (i) Rounds to less than 0.01%. See Notes to Financial Statements. 88 LIBERTY ASSET ALLOCATION FUND FINANCIAL HIGHLIGHTS (CONTINUED) SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED) SIX MONTHS ENDED YEAR ENDED OCTOBER 31, APRIL 30, -------------------------------------------------------------------------------- CLASS G SHARES 2003 (a) 2002 2001 2000 1999 1998 ------------- ----------- ------------ ------------ ------------ ----------- Net Asset Value, Beginning of Period $ 12.84 $ 14.92 $ 18.74 $ 17.70 $ 16.92 $ 16.43 ------------- ----------- ------------ ------------ ------------ ----------- Income from Investment Operations: Net investment income(b) 0.08(c) 0.14(d) 0.22(c) 0.24(c) 0.25 0.29 Net realized and unrealized gain (loss) on investments 0.19 (2.08) (3.06) 1.36 1.21 1.71 ------------- ----------- ------------ ------------ ------------ ----------- Total from Investment Operations 0.27 (1.94) (2.84) 1.60 1.46 2.00 ------------- ----------- ------------ ------------ ------------ ----------- Less Distributions Declared to Shareholders: From net investment income (0.08) (0.14) (0.24) (0.25) (0.25) (0.30) From net realized gains -- -- (0.74) (0.31) (0.43) (1.21) ------------- ----------- ------------ ------------ ------------ ----------- Total Distributions Declared to Shareholders (0.08) (0.14) (0.98) (0.56) (0.68) (1.51) ------------- ----------- ------------ ------------ ------------ ----------- Net Asset Value, End of Period $ 13.03 $ 12.84 $ 14.92 $ 18.74 $ 17.70 $ 16.92 ============= =========== ============ ============ ============ =========== Total Return(e)(f) 2.16%(g) (13.08)% (15.72)% 9.20% 8.76% 13.14% ============= =========== ============ ============ ============ =========== Ratios to Average Net Assets/Supplemental Data: Expenses(h) 2.23%(i) 2.09% 2.01% 1.99% 2.00% 1.99% Net investment income(h) 1.20%(i) 1.04% 1.33% 1.31% 1.43% 1.77% Waiver/reimbursement --%(i) 0.03% 0.01% --% --% --% Portfolio turnover rate 146%(g) 40% 65% 59% 135% 108% Net assets, end of period (000's) $ 63,547 $ 73,183 $ 106,074 $ 105,980 $ 91,199 $ 57,876
________________________________ (a) On November 18, 2002, the Galaxy Asset Allocation Fund, Retail B shares were redesignated Liberty Asset Allocation Fund, Class G shares. (b) Net investment income per share before reimbursement of certain expenses for the six months ended April 30, 2003 and the years ended October 31, 2002, 2001, 2000, 1999 and 1998 was $0.08, $0.14, $0.22, $0.24, $0.25 and $0.29, respectively (c) Per share data was calculated using average shares outstanding during the period. (d) The Trust adopted the provisions of the AICPA Audit Guide for Investment Companies effective November 1, 2001. The effect of the changes for the year ended October 31, 2002 on the net investment income per share, net realized and unrealized gain per share and the net ratio of net investment income to average net assets is $(0.01), $0.01 and (0.05)%, respectively. (e) Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge. (f) Had the Advisor and/or any of its affiliates not waived or reimbursed a portion of expenses, total return would have been reduced. (g) Not annualized. (h) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (i) Annualized. See Notes to Financial Statements. 89 LIBERTY ASSET ALLOCATION FUND FINANCIAL HIGHLIGHTS (CONTINUED) SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED) SIX MONTHS ENDED YEAR ENDED OCTOBER 31, APRIL 30, -------------------------------------------------------------------------------- CLASS T SHARES 2003 (a) 2002 2001 2000 1999 1998 ------------- ----------- ------------ ------------ ------------ ----------- Net Asset Value, Beginning of Period $ 12.87 $ 14.95 $ 18.79 $ 17.74 $ 16.95 $ 16.46 ------------- ----------- ------------ ------------ ------------ ----------- Income from Investment Operations: Net investment income(b) 0.13(c) 0.25(d) 0.33(c) 0.37(c) 0.37 0.38 Net realized and unrealized gain (loss) on investments 0.19 (2.09)(d) (3.08) 1.36 1.21 1.72 ------------- ----------- ------------ ------------ ------------ ----------- Total from Investment Operations 0.32 (1.84) (2.75) 1.73 1.58 2.10 ------------- ----------- ------------ ------------ ------------ ----------- Less Distributions Declared to Shareholders: From net investment income (0.13) (0.24) (0.35) (0.37) (0.36) (0.40) From net realized gains -- -- (0.74) (0.31) (0.43) (1.21) ------------- ----------- ------------ ------------ ------------ ----------- Total Distributions Declared to Shareholders (0.13) (0.24) (1.09) (0.68) (0.79) (1.61) ------------- ----------- ------------ ------------ ------------ ----------- Net Asset Value, End of Period $ 13.06 $ 12.87 $ 14.95 $ 18.79 $ 17.74 $ 16.95 ============= =========== ============ ============ ============ =========== Total Return(e)(f) 2.52%(g) (12.45)% (15.18)% 9.98% 9.53% 13.85% ============= =========== ============ ============ ============ =========== Ratios to Average Net Assets/Supplemental Data: Expenses(h) 1.46%(i) 1.37% 1.33% 1.29% 1.32% 1.33% Net investment income(h) 1.99%(i) 1.76%(d) 2.01% 2.01% 2.11% 2.43% Waiver/reimbursement --%(i) 0.01% 0.01% --% --% --% Portfolio turnover rate 146%(g) 40% 65% 59% 135% 108% Net assets, end of period (000's) $ 179,510 $ 198,154 $ 289,882 $ 371,590 $ 389,077 $ 323,498
_______________________________________ (a) On November 18, 2002, the Galaxy Asset Allocation Fund, Retail A shares were redesignated Liberty Asset Allocation Fund, Class T shares. (b) Net investment income per share before reimbursement of certain expenses for the six months ended April 30, 2003 and the years ended October 31, 2002, 2001, 2000, 1999 and 1998 was $0.13, $0.24, $0.33, $0.37, $0.37 and $0.38, respectively (c) Per share data was calculated using average shares outstanding during the period. (d) The Trust adopted the provisions of the AICPA Audit Guide for Investment Companies effective November 1, 2001. The effect of the changes for the year ended October 31, 2002 on the net investment income per share, net realized and unrealized gain per share and the net ratio of net investment income to average net assets is $(0.01), $0.01 and (0.05)%, respectively. (e) Total return at net asset value assuming all distributions reinvested and no initial sales charge or contingent deferred sales charge. (f) Had the Advisor and/or any of its affiliates not waived or reimbursed a portion of expenses, total return would have been reduced. (g) Not annualized. (h) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (i) Annualized. See Notes to Financial Statements. 90 LIBERTY ASSET ALLOCATION FUND FINANCIAL HIGHLIGHTS (CONTINUED) SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED) SIX MONTHS ENDED YEAR ENDED OCTOBER 31, APRIL 30, ------------------------------------------------------------------------------- CLASS Z SHARES 2003 (a) 2002 2001 2000 1999 1998 ------------ ---------- ---------- ------------ ----------- ---------- Net Asset Value, Beginning of Period $ 12.87 $ 14.94 $ 18.78 $ 17.73 $ 16.96 $ 16.47 ------------ ---------- ---------- ------------ ----------- ---------- Income from Investment Operations: Net investment income(b) 0.15(c) 0.29(d) 0.37(c) 0.41(c) 0.40 0.42 Net realized and unrealized gain (loss) on investments 0.19 (2.09)(d) (3.08) 1.36 1.20 1.71 ------------ ---------- ---------- ------------ ----------- ---------- Total from Investment Operations 0.34 (1.80) (2.71) 1.77 1.60 2.13 ------------ ---------- ---------- ------------ ----------- ---------- Less Distributions Declared to Shareholders: From net investment income (0.14) (0.27) (0.39) (0.41) (0.40) (0.43) From net realized gains -- -- (0.74) (0.31) (0.43) (1.21) ------------ ---------- ---------- ------------ ----------- ---------- Total Distributions Declared to Shareholders (0.14) (0.27) (1.13) (0.72) (0.83) (1.64) ------------ ---------- ---------- ------------ ----------- ---------- Net Asset Value, End of Period $ 13.07 $ 12.87 $ 14.94 $ 18.78 $ 17.73 $ 16.96 ============ ========== ========== ============ =========== ========== Total Return(e)(f) 2.72%(g) (12.23)% (14.94)% 10.21% 9.63% 14.05% ============ ========== ========== ============ =========== ========== Ratios to Average Net Assets/Supplemental Data: Expenses(h) 1.04%(i) 1.12% 1.11% 1.09% 1.12% 1.13% Net investment income(h) 2.36%(i) 2.01%(d) 2.23% 2.21% 2.31% 2.63% Waiver/reimbursement --%(i) 0.03% --% --% --% --% Portfolio turnover rate 146%(g) 40% 65% 59% 135% 108% Net assets, end of period (000's) $ 218,505 $ 163,934 $ 230,562 $ 290,970 $ 269,851 $ 218,666
______________________________________ (a) On November 18, 2002, the Galaxy Asset Allocation Fund, Trust shares were redesignated Liberty Asset Allocation Fund, Class Z shares. (b) Net investment income per share before reimbursement of certain expenses for the six months ended April 30, 2003 and the years ended October 31, 2002, 2002, 2001, 2000, 1999 and 1998 was $0.15, $0.28, $0.37, $0.41, $0.40 and $0.42, respectively (c) Per share data was calculated using average shares outstanding during the period. (d) The Trust adopted the provisions of the AICPA Audit Guide for Investment Companies effective November 1, 2001. The effect of the changes for the year ended October 31, 2002 on the net investment income per share, net realized and unrealized gain per share and the net ratio of net investment income to average net assets is $(0.01), $0.01 and (0.05)%, respectively. (e) Total return at net asset value assuming all distributions reinvested. (f) Had the Advisor and/or any of its affiliates not waived or reimbursed a portion of expenses, total return would have been reduced. (g) Not annualized. (h) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (i) Annualized. See Notes to Financial Statements. 91 LIBERTY EQUITY GROWTH FUND FINANCIAL HIGHLIGHTS SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED) SIX MONTHS ENDED YEAR ENDED OCTOBER 31, APRIL 30, ----------------------------------------------------------------- CLASS A SHARES 2003 (a) 2002 2001 2000 1999 (b) ------------ ----------- ---------- ------------ ----------- Net Asset Value, Beginning of Period $ 16.06 $ 19.74 $ 32.31 $ 28.95 $ 24.49 ------------ ----------- ---------- ------------ ----------- Income from Investment Operations: Net investment income (loss)(c) 0.02(d) 0.03(d) (0.02) (0.05)(d) (0.01) Net realized and unrealized gain (loss) on investments 0.43 (3.71) (8.92) 5.13 6.37 ------------ ----------- ---------- ------------ ----------- Total from Investment Operations 0.45 (3.68) (8.94) 5.08 6.36 ------------ ----------- ---------- ------------ ----------- Less Distributions Declared to Shareholders: From net investment income (0.03) -- -- -- -- From net realized gains -- -- (3.63) (1.72) (1.90) ------------ ----------- ---------- ------------ ----------- Total Distributions Declared to Shareholders (0.03) -- (3.63) (1.72) (1.90) ------------ ----------- ---------- ------------ ----------- Net Asset Value, End of Period $ 16.48 $ 16.06 $ 19.74 $ 32.31 $ 28.95 ============ =========== ========== ============ =========== Total Return(e)(f) 2.79%(g) (18.64)% (30.43)% 18.36% 27.30% ============ =========== ========== ============ =========== Ratios to Average Net Assets/Supplemental Data: Expenses(h) 1.25%(i) 1.12% 1.13% 1.12% 1.14% Net investment income (loss)(h) 0.26%(i) 0.14% (0.10)% (0.17)% (0.05)% Waiver/reimbursement 0.02%(i) 0.05% 0.03% 0.11% 0.14% Portfolio turnover rate 12%(g) 43% 48% 54% 53% Net assets, end of period (000's) $ 340 $ 56 $ 671 $ 142 $ 107
_____________________________________ (a) On November 18, 2002, the Galaxy Equity Growth Fund, Prime A shares were redesignated Liberty Equity Growth Fund, Class A shares. (b) The Fund began issuing Prime A shares on November 1, 1998. (c) Net investment income per share before reimbursement of certain expenses for the six months ended April 30, 2003 and the years ended October 31, 2002, 2001, 2000 and 1999 was $0.02, $0.02, $(0.03), $(0.09) and $(0.04), respectively. (d) Per share data was calculated using average shares outstanding during the period. (e) Total return at net asset value assuming all distributions reinvested and no initial sales charge or contingent deferred sales charge. (f) Had the Advisor and/or any of its affiliates not waived or reimbursed a portion of expenses, total return would have been reduced. (g) Not annualized. (h) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (i) Annualized. See Notes to Financial Statements. 92 LIBERTY EQUITY GROWTH FUND FINANCIAL HIGHLIGHTS (CONTINUED) SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED) SIX MONTHS ENDED YEAR ENDED OCTOBER 31, APRIL 30, ----------------------------------------------------------------- CLASS B SHARES 2003 (a) 2002 2001 2000 1999 (b) ------------- ----------- ------------ ------------ ------------ Net Asset Value, Beginning of Period $ 15.57 $ 19.32 $ 31.94 $ 28.84 $ 24.49 ------------- ----------- ------------ ------------ ------------ Income from Investment Operations: Net investment loss(c) (0.04)(d) (0.14)(d) (0.19) (0.29)(d) (0.10) Net realized and unrealized gain (loss) on investments 0.41 (3.61) (8.80) 5.11 6.35 ------------- ----------- ------------ ------------ ------------ Total from Investment Operations 0.37 (3.75) (8.99) 4.82 6.25 Less Distributions Declared to Shareholders: From net realized gains -- -- (3.63) (1.72) (1.90) ------------- ----------- ------------ ------------ ------------ Net Asset Value, End of Period $ 15.94 $ 15.57 $ 19.32 $ 31.94 $ 28.84 ============= =========== ============ ============ ============ Total Return(e)(f) 2.38%(g) (19.41)% (31.00)% 17.48% 26.79% ============= =========== ============ ============ ============ Ratios to Average Net Assets/Supplemental Data: Expenses(h) 2.02%(i) 1.99% 1.95% 1.87% 1.87% Net investment loss(h) (0.50)%(i) (0.73)% (0.92)% (0.92)% (0.78)% Waiver/reimbursement 0.02%(i) 0.05% 0.03% 0.15% 0.32% Portfolio turnover rate 12%(g) 43% 48% 54% 53% Net assets, end of period (000's) $ 604 $ 207 $ 309 $ 450 $ 246
_______________________________________ (a) On November 18, 2002, the Galaxy Equity Growth Fund, Prime B shares were redesignated Liberty Equity Growth Fund, Class B shares. (b) The Fund began issuing Prime B shares on November 1, 1998. (c) Net investment income per share before reimbursement of certain expenses for the six months ended April 30, 2003 and the years ended October 31, 2002, 2001, 2000 and 1999 was $(0.04), $(0.15), $(0.20), $(0.34) and $ (0.14), respectively. (d) Per share data was calculated using average shares outstanding during the period. (e) Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge. (f) Had the Advisor and/or any of its affiliates not waived or reimbursed a portion of expenses, total return would have been reduced. (g) Not annualized. (h) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (i) Annualized. See Notes to Financial Statements. 93 LIBERTY EQUITY GROWTH FUND FINANCIAL HIGHLIGHTS (CONTINUED) SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS: (UNAUDITED) PERIOD ENDED APRIL 30, CLASS C SHARES 2003 (a) --------------- Net Asset Value, Beginning of Period $ 16.04 --------------- Income from Investment Operations: Net investment loss(b)(c) (0.04) Net realized and unrealized loss on investments (0.05) --------------- Total from Investment Operations (0.09) --------------- Net Asset Value, End of Period $ 15.95 =============== Total Return(d)(e)(f) (0.56)% =============== Ratios to Average Net Assets/Supplemental Data: Expense (g)(h) 2.05% Net investment loss (g)(h) (0.57)% Waiver/reimbursement(h) 0.02% Portfolio turnover rate(f) 12% Net assets, end of period (000's) $ 281 ______________________________________ (a) Class C shares were initially offered on November 18, 2002. Per share data and total return reflect activity from that date. (b) Net investment income per share before reimbursement of certain expenses for the period ended April 30, 2003 was $(0.04). (c) Per share data was calculated using average shares outstanding during the period. (d) Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge. (e) Had the Advisor and/or any of its affiliates not waived or reimbursed a portion of expenses, total return would have been reduced. (f) Not annualized. (g) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (h) Annualized. See Notes to Financial Statements. 94 LIBERTY EQUITY GROWTH FUND FINANCIAL HIGHLIGHTS (CONTINUED) SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED) SIX MONTHS ENDED YEAR ENDED OCTOBER 31, APRIL 30, ----------------------------------------------------------------------------- CLASS G SHARES 2003 (a) 2002 2001 2000 1999 1998 ------------ --------- ---------- ---------- ---------- --------- Net Asset Value, Beginning of Period $ 15.11 $ 18.79 $ 31.22 $ 28.27 $ 24.07 $ 24.91 ------------ --------- ---------- ---------- ---------- --------- Income from Investment Operations: Net investment loss(b) (0.07)(c) (0.17)(c) (0.21) (0.35)(c) (0.20) (0.16)(c) Net realized and unrealized gain (loss) on investments 0.40 (3.51) (8.59) 5.02 6.30 3.16 ------------ --------- ---------- ---------- ---------- --------- Total from Investment Operations 0.33 (3.68) (8.80) 4.67 6.10 3.00 ------------ --------- ---------- ---------- ---------- --------- Less Distributions Declared to Shareholders: In excess of net investment income -- -- -- -- -- --(d) From net realized gains -- -- (3.63) (1.72) (1.90) (3.84) ------------ --------- ---------- ---------- ---------- --------- Total Distributions Declared to Shareholders -- -- (3.63) (1.72) (1.90) (3.84) ------------ --------- ---------- ---------- ---------- --------- Net Asset Value, End of Period $ 15.44 $ 15.11 $ 18.79 $ 31.22 $ 28.27 $ 24.07 ============ ========= ========== ========== ========== ========= Total Return(e) 2.12%(f)(g) (19.49)%(g) (31.16)%(g) 17.29%(g) 26.63%(g) 13.98% ============ ========= ========== ========== ========== ========= Ratios to Average Net Assets/Supplemental Data: Expenses(h) 2.43%(i) 2.18% 2.11% 2.07% 2.05% 2.04% Net investment loss(h) (0.90)%(i) (0.92)% (1.08)% (1.11)% (0.96)% (0.68)% Waiver/reimbursement 0.02%(i) 0.07% 0.02% 0.02% 0.03% --% Portfolio turnover rate 12%(f) 43% 48% 54% 53% 60% Net assets, end of period (000's) $ 58,756 $ 64,156 $ 92,292 $ 130,347 $ 71,525 $ 34,693
______________________________________ (a) On November 18, 2002, the Galaxy Equity Growth Fund, Retail B shares were redesignated Liberty Equity Growth Fund, Class G shares. (b) Net investment income per share before reimbursement of certain expenses for the six months ended April 30, 2003 and the years ended October 31, 2002, 2001, 2000, 1999 and 1998 was $(0.07), $(0.18), $(0.21), $(0.35), $(0.21) and $(0.16), respectively. (c) Per share data was calculated using average shares outstanding during the period. (d) Rounds to less than $0.01 per share. (e) Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge. (f) Not annualized. (g) Had the Advisor and/or any of its affiliates not waived or reimbursed a portion of expenses, total return would have been reduced. (h) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (i) Annualized. See Notes to Financial Statements. 95 LIBERTY EQUITY GROWTH FUND FINANCIAL HIGHLIGHTS (CONTINUED) SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED) SIX MONTHS ENDED YEAR ENDED OCTOBER 31, APRIL 30, ----------------------------------------------------------------------------- CLASS T SHARES 2003 (a) 2002 2001 2000 1999 1998 ------------ --------- ---------- ---------- ---------- --------- Net Asset Value, Beginning of Period $ 15.98 $ 19.70 $ 32.31 $ 28.99 $ 24.47 $ 25.14 ------------ --------- ---------- ---------- ---------- --------- Income from Investment Operations: Net investment income (loss)(c) --(b)(d) (0.02)(d) (0.07) (0.10)(d) (0.06) 0.01 Net realized and unrealized gain (loss) on investments 0.42 (3.70) (8.91) 5.14 6.48 3.19 ------------ --------- ---------- ---------- ---------- --------- Total from Investment Operations 0.42 (3.72) (8.98) 5.04 6.42 3.20 ------------ --------- ---------- ---------- ---------- --------- Less Distributions Declared to Shareholders: From net investment income -- -- -- -- -- (0.03) In excess of net investment income -- -- -- -- -- --(b) From net realized gains -- -- (3.63) (1.72) (1.90) (3.84) ------------ --------- ---------- ---------- ---------- --------- Total Distributions Declared to Shareholders -- -- (3.63) (1.72) (1.90) (3.87) ------------ --------- ---------- ---------- ---------- --------- Net Asset Value, End of Period $ 16.40 $ 15.98 $ 19.70 $ 32.31 $ 28.99 $ 24.47 ============ ========= ========== ========== ========== ========= Total Return(e) 2.63%(f)(g) (18.88)%(g) (30.57)%(g) 18.18% 27.55% 14.73% ============ ========= ========== ========== ========== ========= Ratios to Average Net Assets/Supplemental Data: Expenses(h) 1.52%(i) 1.34% 1.31% 1.28% 1.34% 1.34% Net investment income (loss)(h) 0.02%(i) (0.08)% (0.28)% (0.33)% (0.25)% 0.02% Waiver/reimbursement 0.02%(i) 0.07% 0.02% --% --% --% Portfolio turnover rate 12%(f) 43% 48% 54% 53% 60% Net assets, end of period (000's) $ 225,101 $ 239,279 $ 346,214 $ 580,417 $ 443,639 $ 312,951
_____________________________________ (a) On November 18, 2002, the Galaxy Equity Growth Fund, Retail A shares were redesignated Liberty Equity Growth Fund, Class T shares. (b) Rounds to less than $0.01 per share. (c) Net investment income per share before reimbursement of certain expenses for the six months ended April 30, 2003 and the years ended October 31, 2002, 2001, 2000, 1999 and 1998 was $0.00, $(0.03), $(0.08), $(0.10), $(0.06) and $0.01, respectively. (d) Per share data was calculated using average shares outstanding during the period. (e) Total return at net asset value assuming all distributions reinvested and no initial sales charge or contingent deferred sales charge. (f) Not annualized. (g) Had the Advisor and/or any of its affiliates not waived or reimbursed a portion of expenses, total return would have been reduced. (h) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (i) Annualized. See Notes to Financial Statements. 96 LIBERTY EQUITY GROWTH FUND FINANCIAL HIGHLIGHTS (CONTINUED) SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED) SIX MONTHS ENDED YEAR ENDED OCTOBER 31, APRIL 30, ------------------------------------------------------------------------------ CLASS Z SHARES 2003 (a) 2002 2001 2000 1999 1998 ------------ --------- ---------- ----------- ----------- ---------- Net Asset Value, Beginning of Period $ 16.28 $ 19.99 $ 32.61 $ 29.15 $ 24.52 $ 25.17 ------------ --------- ---------- ----------- ----------- ---------- Income from Investment Operations: Net investment income(b) 0.04(c) 0.07(c) 0.02 0.01(c) 0.03 0.09 Net realized and unrealized gain (loss) on investments 0.44 (3.78) (9.01) 5.18 6.50 3.20 ------------ --------- ---------- ----------- ----------- ---------- Total from Investment Operations 0.48 (3.71) (8.99) 5.19 6.53 3.29 ------------ --------- ---------- ----------- ----------- ---------- Less Distributions Declared to Shareholders: From net investment income (0.06) -- -- (0.01) -- (0.09) In excess of net investment income -- -- -- -- -- (0.01) From net realized gains -- -- (3.63) (1.72) (1.90) (3.84) ------------ --------- ---------- ----------- ----------- ---------- Total Distributions Declared to Shareholders (0.06) -- (3.63) (1.73) (1.90) (3.94) ------------ --------- ---------- ----------- ----------- ---------- Net Asset Value, End of Period $ 16.70 $ 16.28 $ 19.99 $ 32.61 $ 29.15 $ 24.52 ============ ========= ========== =========== =========== ========= Total Return(d) 2.91%(e)(f) (18.51)%(f) (30.29)%(f) 18.63% 28.07%(f) 15.17% ============ ========= ========== =========== =========== ========= Ratios to Average Net Assets/Supplemental Data: Expenses(g) 0.98%(h) 0.91% 0.93% 0.91% 0.94% 0.96% Net investment income(g) 0.55%(h) 0.35% 0.10% 0.04% 0.15% 0.40% Waiver/reimbursement 0.02%(h) 0.05% 0.01% --% --% --% Portfolio turnover rate 12%(e) 43% 48% 54% 53% 60% Net assets, end of period (000's) $ 624,397 $ 699,215 $ 845,887 $ 1,258,399 $ 1,041,378 $ 815,756
________________________________ (a) On November 18, 2002, the Galaxy Equity Growth Fund, Trust shares were redesignated Liberty Equity Growth Fund, Class Z shares. (b) Net investment income per share before reimbursement of certain expenses for the six months ended April 30, 2003 and the years ended October 31, 2002, 2001, 2000, 1999 and 1998 was $0.04, $0.06, $0.02, $0.01, $0.03 and $0.09, respectively. (c) Per share data was calculated using average shares outstanding during the period. (d) Total return at net asset value assuming all distributions reinvested. (e) Not annualized. (f) Had the Advisor and/or any of its affiliates not waived or reimbursed a portion of expenses, total return would have been reduced. (g) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (h) Annualized. See Notes to Financial Statements. 97 LIBERTY EQUITY VALUE FUND FINANCIAL HIGHLIGHTS SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD IS AS FOLLOWS: (UNAUDITED) PERIOD ENDED APRIL 30, CLASS A SHARES 2003 (a) -------------- Net Asset Value, Beginning of Period $ 10.06 -------------- Income from Investment Operations: Net investment loss(b)(c) (0.01) Net realized and unrealized loss on investments (0.06) -------------- Total from Investment Operations (0.07) -------------- Net Asset Value, End of Period $ 9.99 ============== Total Return(d)(e) (0.70)% ============== Ratios to Average Net Assets/Supplemental Data: Expenses(f)(g) 1.42% Net investment loss(f)(g) (0.21)% Portfolio turnover rate(e) 21% Net assets, end of period (000's) $ 62 ____________________________________ (a) Class A shares were initially offered on November 25, 2002. Per share data and total return reflect activity from that date. (b) Net investment income per share before reimbursement of certain expenses for the period ended April 30, 2003 was $(0.01). (c) Per share data was calculated using average shares outstanding during the period. (d) Total return at net asset value assuming all distributions reinvested and no initial sales charge or contingent deferred sales charge. (e) Not annualized. (f) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (g) Annualized. See Notes to Financial Statements. 98 LIBERTY EQUITY VALUE FUND FINANCIAL HIGHLIGHTS (CONTINUED) SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD IS AS FOLLOWS: (UNAUDITED) PERIOD ENDED APRIL 30, CLASS B SHARES 2003 (a) -------------- Net Asset Value, Beginning of Period $ 9.67 -------------- Income from Investment Operations: Net investment loss(b)(c) (0.02) Net realized and unrealized loss on investments (0.11) -------------- Total from Investment Operations (0.13) -------------- Net Asset Value, End of Period $ 9.54 ============== Total Return(d)(e) (1.34)% ============== Ratios to Average Net Assets/Supplemental Data: Expenses(f)(g) 2.29% Net investment loss(f)(g) (0.49)% Portfolio turnover rate(e) 21% Net assets, end of period (000's) $ 100 ______________________________ (a) Class B shares were initially offered on November 25, 2002. Per share data and total return reflect activity from that date. (b) Net investment income per share before reimbursement of certain Fund expenses for the period ended April 30, 2003 was $(0.02). (c) Per share data was calculated using average shares outstanding during the period. (d) Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge. (e) Not annualized. (f) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (g) Annualized. See Notes to Financial Statements. 99 LIBERTY EQUITY VALUE FUND FINANCIAL HIGHLIGHTS (CONTINUED) SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD IS AS FOLLOWS: (UNAUDITED) PERIOD ENDED APRIL 30, CLASS C SHARES 2003 (a) -------------- Net Asset Value, Beginning of Period $ 9.67 -------------- Income from Investment Operations: Net investment loss(b)(c) (0.04) Net realized and unrealized loss on investments (0.08) -------------- Total from Investment Operations (0.12) -------------- Net Asset Value, End of Period $ 9.55 ============== Total Return(d)(e) (1.24)% ============== Ratios to Average Net Assets/Supplemental Data: Expenses(f)(g) 2.30% Net investment loss(f)(g) (0.74)% Portfolio turnover rate(e) 21% Net assets, end of period (000's) $ 8 ____________________________________ (a) Class C shares were initially offered on November 25, 2002. Per share data and total return reflect activity from that date. (b) Net investment income per share before reimbursement of certain expenses for the period ended April 30, 2003 was $(0.03). (c) Per share data was calculated using average shares outstanding during the period. (d) Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge. (e) Not annualized. (f) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (g) Annualized. See Notes to Financial Statements. 100 LIBERTY EQUITY VALUE FUND FINANCIAL HIGHLIGHTS (CONTINUED) SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED) SIX MONTHS ENDED YEAR ENDED OCTOBER 31, APRIL 30, ------------------------------------------------------------------------ CLASS G SHARES 2003 (a) 2002 2001 2000 1999 1998 ----------- --------- ---------- ---------- ----------- ----------- Net Asset Value, Beginning of Period $ 9.21 $ 12.10 $ 16.73 $ 18.08 $ 16.44 $ 18.24 ----------- --------- ---------- ---------- ----------- ----------- Income from Investment Operations: Net investment loss(b) (0.04)(c) (0.19) (0.10) (0.15) (0.15) (0.08) Net realized and unrealized gain (loss) on investments 0.38 (2.35) (1.64) 1.25 2.40 1.48 ----------- --------- ---------- ---------- ----------- ----------- Total from Investment Operations 0.34 (2.54) (1.74) 1.10 2.25 1.40 ----------- --------- ---------- ---------- ----------- ----------- Less Distributions Declared to Shareholders: From net realized gains -- (0.35) (2.89) (2.45) (0.61) (3.20) ----------- --------- ---------- ---------- ----------- ----------- Net Asset Value, End of Period $ 9.55 $ 9.21 $ 12.10 $ 16.73 $ 18.08 $ 16.44 =========== ========= =========== ========= ============ ============ Total Return(d) 3.69%(e)(f) (21.85)% (11.00)%(f) 7.12%(f) 13.81% 9.07% =========== ========= =========== ========= ============ ============ Ratios to Average Net Assets/Supplemental Data: Expenses(g) 2.40%(h) 2.18% 2.13% 2.09% 2.08% 2.06% Net investment loss(g) (0.78)%(h) (1.15)% (0.91)% (0.83)% (0.87)% (0.54)% Waiver/reimbursement --% --% 0.02% 0.03% --% --% Portfolio turnover rate 21%(e) 99% 127% 72% 75% 82% Net assets, end of period (000's) $ 14,240 $ 16,791 $ 25,776 $ 30,555 $ 30,988 $ 23,103
_______________________________ (a) On November 25, 2002, the Galaxy Equity Value Fund, Retail B shares were redesignated Liberty Equity Value Fund, Class G shares. (b) Net investment income per share before reimbursement of certain expenses for the six months ended April 30, 2003 and the years ended October 31, 2002, 2001, 2000, 1999 and 1998 was $(0.04), $(0.19), $(0.10), $(0.15), $(0.15) and $(0.08), respectively. (c) Per share data was calculated using average shares outstanding during the period. (d) Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge. (e) Not annualized. (f) Had the Advisor and/or any of its affiliates not waived or reimbursed a portion of expenses, total return would have been reduced. (g) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (h) Annualized. See Notes to Financial Statements. 101 LIBERTY EQUITY VALUE FUND FINANCIAL HIGHLIGHTS (CONTINUED) SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED) SIX MONTHS ENDED YEAR ENDED OCTOBER 31, APRIL 30, ------------------------------------------------------------------------- CLASS T SHARES 2003(a) 2002 2001 2000 1999 1998 ----------- ----------- ---------- ----------- ----------- ---------- Net Asset Value, Beginning of Period $ 9.58 $ 12.48 $ 17.05 $ 18.28 $ 16.50 $ 18.21 ----------- ----------- ---------- ----------- ----------- ---------- Income from Investment Operations: Net investment income (loss)(b) --(c)(d) (0.05) (0.02) (0.02) (0.03) 0.03 Net realized and unrealized gain (loss) on investments 0.39 (2.50) (1.66) 1.25 2.42 1.50 ----------- ----------- ---------- ----------- ----------- ---------- Total from Investment Operations 0.39 (2.55) (1.68) 1.23 2.39 1.53 ----------- ----------- ---------- ----------- ----------- ---------- Less Distributions Declared to Shareholders: From net investment income -- -- -- (0.01) -- (0.04) In excess of net investment income -- -- -- --(c) -- -- From net realized gains -- (0.35) (2.89) (2.45) (0.61) (3.20) ----------- ----------- ---------- ----------- ----------- ---------- Total Distributions Declared to Shareholders -- (0.35) (2.89) (2.46) (0.61) (3.24) ----------- ----------- ---------- ----------- ----------- ---------- Net Asset Value, End of Period $ 9.97 $ 9.58 $ 12.48 $ 17.05 $ 18.28 $ 16.50 =========== ========== ========== =========== =========== ========== Total Return(e) 4.07%(f)(g) (21.31)% (10.27)%(g) 7.83% 14.63% 9.88% =========== ========== ========== =========== =========== ========== Ratios to Average Net Assets/Supplemental Data: Expenses(h) 1.54%(i) 1.41% 1.39% 1.36% 1.37% 1.37% Net investment income (loss)(h) 0.08%(i) (0.38)% (0.17)% (0.10)% (0.16)% 0.15% Waiver/reimbursement --% --% 0.01% --% --% --% Portfolio turnover rate 21%(f) 99% 127% 72% 75% 82% Net assets, end of period (000's) $ 118,231 $ 123,085 $ 180,435 $ 226,836 $ 258,332 $ 234,730
_______________________________ (a) On November 25, 2002, the Galaxy Equity Value Fund, Retail A shares were redesignated Liberty Equity Value Fund, Class T shares. (b) Net investment income per share before reimbursement of certain expenses for the six months ended April 30, 2003 and the years ended October 31, 2002, 2001, 2000, 1999 and 1998 was $0.00, $(0.05), $(0.02), $(0.02), $(0.03) and $0.03, respectively. (c) Per share data was calculated using average shares outstanding during the period. (d) Rounds to less than $0.01 per share. (e) Total return at net asset value assuming all distributions reinvested and no initial sales charge or contingent deferred sales charge. (f) Not annualized. (g) Had the Advisor and/or any of its affiliates not waived or reimbursed a portion of expenses, total return would have been reduced. (h) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (i) Annualized. See Notes to Financial Statements. 102 LIBERTY EQUITY VALUE FUND FINANCIAL HIGHLIGHTS (CONTINUED) SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED) SIX MONTHS ENDED YEAR ENDED OCTOBER 31, APRIL 30, ------------------------------------------------------------------------------- CLASS Z SHARES 2003 (a) 2002 2001 2000 1999 1998 ----------- ----------- ---------- ------------ ----------- ------------ Net Asset Value, Beginning of Period $ 9.75 $ 12.65 $ 17.17 $ 18.35 $ 16.51 $ 18.21 ----------- ----------- ---------- ------------ ----------- ------------ Income from Investment Operations: Net investment income (loss)(b) 0.03(c) (0.02) 0.02 0.04 0.03 0.08 Net realized and unrealized gain (loss) on investments 0.40 (2.53) (1.65) 1.25 2.42 1.49 ----------- ----------- ---------- ------------ ----------- ------------ Total from Investment Operations 0.43 (2.55) (1.63) 1.29 2.45 1.57 ----------- ----------- ---------- ------------ ----------- ------------ Less Distributions Declared to Shareholders: From net investment income -- -- -- (0.02) -- (0.07) In excess of net investment income -- -- -- --(d) -- -- From net realized gains -- (0.35) (2.89) (2.45) (0.61) (3.20) ----------- ----------- ---------- ------------ ----------- ------------ Total Distributions Declared to Shareholders -- (0.35) (2.89) (2.47) (0.61) (3.27) ----------- ----------- ---------- ------------ ----------- ------------ Net Asset Value, End of Period $ 10.18 $ 9.75 $ 12.65 $ 17.17 $ 18.35 $ 16.51 =========== =========== ========== ============ =========== ============ Total Return(e) 4.41%(f) (20.96)% (9.91)% 8.22% 15.04%(g) 10.27% =========== =========== ========== ============ =========== ============ Ratios to Average Net Assets/Supplemental Data: Expenses(h) 1.01%(i) 0.98% 1.00% 1.00% 1.02% 1.03% Net investment income(h) 0.62%(i) 0.05% 0.22% 0.26% 0.19% 0.49% Waiver/reimbursement --% --% --% --% 0.01% --% Portfolio turnover rate 21%(f) 99% 127% 72% 75% 82% Net assets, end of period (000's) $ 193,231 $ 167,867 $ 152,002 $ 164,864 $ 281,064 $ 254,432
__________________________________ (a) On November 25, 2002, the Galaxy Equity Value Fund, Trust shares were redesignated Liberty Equity Value Fund, Class Z shares. (b) Net investment income per share before reimbursement of certain expenses for the six months ended April 30, 2003 and the years ended October 31, 2002, 2001, 2000, 1999 and 1998 was $0.03, $(0.02), $0.02, $0.04, $0.03 and $0.08, respectively. (c) Per share data was calculated using average shares outstanding during the period. (d) Rounds to less than $0.01 per share. (e) Total return at net asset value assuming all distributions reinvested. (f) Not annualized. (g) Had the Advisor and/or any of its affiliates not waived or reimbursed a portion of expenses, total return would have been reduced. (h) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (i) Annualized. See Notes to Financial Statements. 103 LIBERTY INTERNATIONAL EQUITY FUND FINANCIAL HIGHLIGHTS SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED) SIX MONTHS ENDED YEAR ENDED OCTOBER 31, APRIL 30, ----------------------------------------------------------------- CLASS A SHARES 2003 (a) 2002 2001 2000 1999 (b) ----------- ----------- ------------ ------------ ------------ Net Asset Value, Beginning of Period $ 9.28 $ 11.19 $ 19.53 $ 20.98 $ 16.85 ----------- ----------- ------------ ------------ ------------ Income from Investment Operations: Net investment income (loss)(c) 0.08(d) (0.01)(d) (0.02) 0.46(d) 0.06(d) Net realized and unrealized (gain) loss on investments 0.02 (1.72) (5.73) (0.60) 4.79 ----------- ----------- ------------ ------------ ------------ Total from Investment Operations 0.10 (1.73) (5.75) (0.14) 4.85 ----------- ----------- ------------ ------------ ------------ Less Distributions Declared to Shareholders: From net investment income (0.04) (0.18) (0.31) (0.12) (0.15) From net realized gains -- -- (2.28) (1.19) (0.57) ----------- ----------- ------------ ------------ ------------ Total Distributions Declared to Shareholders (0.04) (0.18) (2.59) (1.31) (0.72) ----------- ----------- ------------ ------------ ------------ Net Asset Value, End of Period $ 9.34 $ 9.28 $ 11.19 $ 19.53 $ 20.98 =========== =========== ============ ============ ============ Total Return(e)(f) 1.10%(g) (15.78)% (33.38)% (1.34)% 29.73% =========== =========== ============ ============ ============ Ratios to Average Net Assets/Supplemental Data: Expenses(h) 1.29%(i) 1.63% 1.44% 1.10% 1.17% Net investment income (loss)(h) 1.78%(i) (0.11)% 0.01% 2.06% 0.34% Waiver/reimbursement 0.25%(i) 0.56% 0.33% 0.89% 0.86% Portfolio turnover rate 33%(g) 110% 60% 50% 45% Net assets, end of period (000's) $ 205 $ 8 $ 9 $ 14 $ 12
_________________________________ (a) On November 18, 2002, the Galaxy International Equity Fund, Prime A shares were redesignated Liberty International Equity Fund, Class A shares. (b) The Fund began offering Prime A shares on November 1, 1998. (c) Net investment income per share before reimbursement of certain expenses for the six months ended April 30, 2003 and the years ended October 31, 2002, 2001, 2000 and 1999 was $0.08, $(0.07), $0.41, $0.26 and $(0.09), respectively. (d) Per share data was calculated using average shares outstanding during the period. (e) Total return at net asset value assuming all distributions reinvested and no initial sales charge or contingent deferred sales charge. (f) Had the Advisor and/or any of its affiliates not waived or reimbursed a portion of expenses, total return would have been reduced. (g) Not annualized. (h) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (i) Annualized. See Notes to Financial Statements. 104 LIBERTY INTERNATIONAL EQUITY FUND FINANCIAL HIGHLIGHTS (CONTINUED) SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED) SIX MONTHS ENDED YEAR ENDED OCTOBER 31, APRIL 30, ----------------------------------------------------------------- CLASS B SHARES 2003 (a) 2002 2001 2000 1999 (b) ----------- ----------- ------------ ------------ ------------ Net Asset Value, Beginning of Period $ 9.22 $ 11.11 $ 19.37 $ 20.85 $ 16.85 ----------- ----------- ------------ ------------ ------------ Income from Investment Operations: Net investment income (loss)(c) (0.01)(d) (0.05)(d) (0.08) 0.29(d) (0.08)(d) Net realized and unrealized (gain) loss on investments 0.09 (1.71) (5.71) (0.58) 4.78 ----------- ----------- ------------ ------------ ------------ Total from Investment Operations 0.08 (1.76) (5.79) (0.29) 4.70 ----------- ----------- ------------ ------------ ------------ Less Distributions Declared to Shareholders: From net investment income (0.01) (0.13) (0.19) -- (0.13) From net realized gains -- -- (2.28) (1.19) (0.57) ----------- ----------- ------------ ------------ ------------ Total Distributions Declared to Shareholders (0.01) (0.13) (2.47) (1.19) (0.70) ----------- ----------- ------------ ------------ ------------ Net Asset Value, End of Period $ 9.29 $ 9.22 $ 11.11 $ 19.37 $ 20.85 =========== =========== ============ ============ ============ Total Return(e)(f) 0.86%(g) (16.06)% (33.72)% (2.02)% 28.74% =========== =========== ============ ============ ============ Ratios to Average Net Assets/Supplemental Data: Expenses(h) 2.29%(i) 1.97% 1.91% 1.83% 1.89% Net investment income (loss)(h) (0.14)%(i) (0.45)% (0.46)% 1.33% (0.38)% Waiver/reimbursement 0.25%(i) 0.25% 0.28% 0.34% 0.38% Portfolio turnover rate 33%(g) 110% 60% 50% 45% Net assets, end of period (000's) $ 81 $ 54 $ 280 $ 483 $ 458
_________________________________ (a) On November 18, 2002, the Galaxy International Equity Fund, Prime B shares were redesignated Liberty International Equity Fund, Class B shares. (b) The Fund began offering Prime B shares on November 1, 1998. (c) Net investment income per share before reimbursement of certain expenses for the six months ended April 30, 2003 and the years ended October 31, 2002, 2001, 2000 and 1999 was $(0.01), $(0.07), $(0.13), $0.22 and $(0.16), respectively. (d) Per share data was calculated using average shares outstanding during the period. (e) Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge. (f) Had the Advisor and/or any of its affiliates not waived or reimbursed a portion of expenses, total return would have been reduced. (g) Not annualized. (h) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (i) Annualized. See Notes to Financial Statements. 105 LIBERTY INTERNATIONAL EQUITY FUND FINANCIAL HIGHLIGHTS (CONTINUED) SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD IS AS FOLLOWS: (UNAUDITED) PERIOD ENDED APRIL 30, CLASS C SHARES 2003 (a) -------------- Net Asset Value, Beginning of Period $ 9.27 -------------- Income from Investment Operations: Net investment income(b)(c) 0.07 Net realized and unrealized loss on investments (0.07) -------------- Total from Investment Operations -- -------------- Less Distributions Declared to Shareholders: From net investment income (0.01) -------------- Net Asset Value, End of Period $ 9.26 ============== Total Return(d)(e)(f) (0.01)% ============== Ratios to Average Net Assets/Supplemental Data: Expenses(g)(h) 2.11% Net investment loss(g)(h) 1.85% Waiver/reimbursement(h) 0.25% Portfolio turnover rate(f) 33% Net assets, end of period (000's) $ 16 ________________________________ (a) Class C shares were initially offered on November 18, 2002. Per share data reflects activity from that date. (b) Net investment income per share before reimbursement of certain expenses for the period ended April 30, 2003 was $0.07. (c) Per share data was calculated using average shares outstanding during the period. (d) Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge. (e) Had the Advisor and/or any of its affiliates not waived or reimbursed a portion of expenses, total return would have been reduced. (f) Not annualized. (g) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (h) Annualized. See Notes to Financial Statements. 106 LIBERTY INTERNATIONAL EQUITY FUND FINANCIAL HIGHLIGHTS (CONTINUED) SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED) SIX MONTHS ENDED YEAR ENDED OCTOBER 31, APRIL 30, ----------------------------------------------------------------- CLASS G SHARES 2003 (a) 2002 2001 2000 1999 (b) ----------- ----------- ------------ ------------ ------------ Net Asset Value, Beginning of Period $ 9.16 $ 11.04 $ 19.28 $ 20.80 $ 16.85 ----------- ----------- ------------ ------------ ------------ Income from Investment Operations: Net investment income (loss)(c) (0.04)(d) (0.10)(d) (0.10) 0.22(d) (0.09)(d) Net realized and unrealized loss on investments 0.08 (1.70) (5.72) (0.55) 4.74 ----------- ----------- ------------ ------------ ------------ Total from Investment Operations 0.04 (1.80) (5.82) (0.33) 4.65 ----------- ----------- ------------ ------------ ------------ Less Distributions Declared to Shareholders: From net investment income -- (0.08) (0.14) -- (0.13) From net realized gains -- -- (2.28) (1.19) (0.57) ----------- ----------- ------------ ------------ ------------ Total Distributions Declared to Shareholders -- (0.08) (2.42) (1.19) (0.70) ----------- ----------- ------------ ------------ ------------ Net Asset Value, End of Period $ 9.20 $ 9.16 $ 11.04 $ 19.28 $ 20.80 =========== =========== ============ ============ ============ Total Return(e)(f) 0.44%(g) (16.55)% (33.95)% (2.22)% 28.41% =========== =========== ============ ============ ============ Ratios to Average Net Assets/Supplemental Data: Expenses(h) 2.96%(i) 2.46% 2.34% 2.14% 1.96% Net investment income (loss)(h) (0.88)%(i) (0.94)% (0.89)% 1.02% (0.45)% Waiver/reimbursement 0.25%(i) 0.51% 0.32% 0.50% 0.74% Portfolio turnover rate 33%(g) 110% 60% 50% 45% Net assets, end of period (000's) $ 81 $ 4,913 $ 6,988 $ 8,297 $ 2,189
_______________________________ (a) On November 18, 2002, the Galaxy International Equity Fund, Retail B shares were redesignated Liberty International Equity Fund, Class G shares. (b) The Fund began issuing Class G shares on November 1, 1998. (c) Net investment income per share before reimbursement of certain expenses for the six months ended April 30, 2003 and the years ended October 31, 2002, 2001, 2000, 1999 and 1998 was $(0.04), $(0.15), $(0.14), $0.11 and $(0.25), respectively. (d) Per share data was calculated using average shares outstanding during the period. (e) Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge. (f) Had the Advisor and/or any of its affiliates not waived or reimbursed a portion of expenses, total return would have been reduced. (g) Not annualized. (h) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (i) Annualized. See Notes to Financial Statements. 107 LIBERTY INTERNATIONAL EQUITY FUND FINANCIAL HIGHLIGHTS (CONTINUED) SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED) SIX MONTHS ENDED YEAR ENDED OCTOBER 31, APRIL 30, ------------------------------------------------------------------------------------ CLASS T SHARES 2003 (a) 2002 2001 2000 1999 1998 ----------- ----------- ------------ ------------ ------------ ------------ Net Asset Value, Beginning of Period $ 9.24 $ 11.16 $ 19.44 $ 20.86 $ 16.75 $ 15.18 ----------- ----------- ------------ ------------ ------------ ------------ Income from Investment Operations: Net investment income(b) 0.02(c) 0.01(c) 0.03 0.41(c) 0.01(c) 0.07 Net realized and unrealized loss on investments 0.08 (1.73) (5.75) (0.59) 4.72 1.93 ----------- ----------- ------------ ------------ ------------ ------------ Total from Investment Operations 0.10 (1.72) (5.72) (0.18) 4.73 2.00 ----------- ----------- ------------ ------------ ------------ ------------ Less Distributions Declared to Shareholders: From net investment income (0.06) (0.20) (0.28) (0.05) (0.05) (0.07) From net realized gains -- -- (2.28) (1.19) (0.57) (0.36) ----------- ----------- ------------ ------------ ------------ ------------ Total Distributions Declared to Shareholders (0.06) (0.20) (2.56) (1.24) (0.62) (0.43) ----------- ----------- ------------ ------------ ------------ ------------ Net Asset Value, End of Period $ 9.28 $ 9.24 $ 11.16 $ 19.44 $ 20.86 $ 16.75 =========== =========== ============ ============ ============ ============ Total Return(d)(e) 1.11%(f) (15.75)% (33.35)% (1.49)% 29.04% 13.64% =========== =========== ============ ============ ============ ============ Ratios to Average Net Assets/Supplemental Data: Expenses(g) 1.70%(h) 1.42% 1.34% 1.32% 1.48% 1.48% Net investment income(g) 0.35%(h) 0.10% 0.11% 1.83% 0.03% 0.39% Waiver/reimbursement 0.25%(h) 0.37% 0.30% 0.25% 0.25% 0.25% Portfolio turnover rate 33%(f) 110% 60% 50% 45% 49% Net assets, end of period (000's) $ 38,535 $ 43,095 $ 65,749 $ 120,351 $ 89,327 $ 66,541
______________________________ (a) On November 18, 2002, the Galaxy International Equity Fund, Retail A shares were redesignated Liberty International Equity Fund, Class T shares. (b) Net investment income per share before reimbursement of certain expenses for the six months ended April 30, 2003 and the years ended October 31, 2002, 2001, 2000, 1999 and 1998 was $0.00, $(0.03), $(0.05), $0.35, $(0.04) and $0.03, respectively. (c) Per share data was calculated using average shares outstanding during the period. (d) Total return at net asset value assuming all distributions reinvested and no initial sales charge or contingent deferred sales charge. (e) Had the Advisor and/or any of its affiliates not waived or reimbursed a portion of expenses, total return would have been reduced. (f) Not annualized. (g) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (h) Annualized. See Notes to Financial Statements. 108 LIBERTY INTERNATIONAL EQUITY FUND FINANCIAL HIGHLIGHTS (CONTINUED) SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED) SIX MONTHS ENDED YEAR ENDED OCTOBER 31, APRIL 30, ------------------------------------------------------------------------------------ CLASS Z SHARES 2003 (a) 2002 2001 2000 1999 1998 ----------- ----------- ------------ ------------ ------------ ------------ Net Asset Value, Beginning of Period $ 9.43 $ 11.36 $ 19.74 $ 21.18 $ 17.00 $ 15.33 ----------- ----------- ------------ ------------ ------------ ------------ Income from Investment Operations: Net investment income(b) 0.05(c) 0.06(c) 0.07 0.51(c) 0.10(c) 0.14 Net realized and unrealized loss on investments 0.09 (1.74) (5.82) (0.60) 4.80 1.98 ----------- ----------- ------------ ------------ ------------ ------------ Total from Investment Operations 0.14 (1.68) (5.75) (0.09) 4.90 2.12 ----------- ----------- ------------ ------------ ------------ ------------ Less Distributions Declared to Shareholders: From net investment income (0.11) (0.25) (0.35) (0.16) (0.15) (0.09) ----------- ----------- ------------ ------------ ------------ ------------ From net realized gains -- -- (2.28) (1.19) (0.57) (0.36) ----------- ----------- ------------ ------------ ------------ ------------ Total Distributions Declared to Shareholders (0.11) (0.25) (2.63) (1.35) (0.72) (0.45) ----------- ----------- ------------ ------------ ------------ ------------ Net Asset Value, End of Period $ 9.46 $ 9.43 $ 11.36 $ 19.74 $ 21.18 $ 17.00 =========== =========== ============ ============ ============ ============ Total Return(d)(e) 1.46%(f) (15.26)% (33.00)% (1.08)% 29.71% 14.32% =========== =========== ============ ============ ============ ============ Ratios to Average Net Assets/Supplemental Data: Expenses(g) 1.02%(h) 0.94% 0.90% 0.87% 0.97% 0.96% Net investment income(g) 1.01%(h) 0.58% 0.55% 2.28% 0.54% 0.91% Waiver/reimbursement 0.25%(h) 0.27% 0.26% 0.25% 0.25% 0.25% Portfolio turnover rate 33%(f) 110% 60% 50% 45% 49% Net assets, end of period (000's) $ 318,101 $ 374,119 $ 524,704 $ 912,555 $ 501,776 $ 345,692
_________________________________ (a) On November 18, 2002, the Galaxy International Equity Fund, Prime A shares were redesignated Liberty International Equity Fund, Class A shares. (b) Net investment income per share before reimbursement of certain expenses for the six months ended April 30, 2003 and the years ended October 31, 2002, 2001, 2000, 1999 and 1998 was $0.03, $0.04, $0.04, $0.45, $0.06 and $0.10, respectively. (c) Per share data was calculated using average shares outstanding during the period. (d) Total return at net asset value assuming all distributions reinvested. (e) Had the Advisor and/or any of its affiliates not waived or reimbursed a portion of expenses, total return would have been reduced. (f) Not annualized. (g) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (h) Annualized. See Notes to Financial Statements. 109 Liberty Large Cap Core Fund FINANCIAL HIGHLIGHTS SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED) SIX MONTHS ENDED YEAR ENDED OCTOBER 31, APRIL 30, --------------------------------------------------------------------- CLASS A SHARES 2003 (a) 2002 2001 2000 1999 (b) ----------- ----------- ------------ ------------ ------------ Net Asset Value, Beginning of Period $ 10.08 $ 12.74 $ 16.41 $ 16.00 $ 14.88 ----------- ----------- ------------ ------------ ------------ Income from Investment Operations: Net investment income(c) 0.02(d) 0.03(d) 0.02 0.04 0.11(d) Net realized and unrealized gain (loss) on investments 0.39 (2.23) (2.38) 1.34 2.03 ----------- ----------- ------------ ------------ ------------ Total from Investment Operations 0.41 (2.20) (2.36) 1.38 2.14 ----------- ----------- ------------ ------------ ------------ Less Distributions Declared to Shareholders: From net investment income (0.04) (0.02) (0.03) (0.06) (0.11) In excess of net investment income -- -- --(e) -- -- From net realized gains -- (0.44) (1.28) (0.91) (0.91) ----------- ----------- ------------ ------------ ------------ Total Distributions Declared to Shareholders (0.04) (0.46) (1.31) (0.97) (1.02) ----------- ----------- ------------ ------------ ------------ Net Asset Value, End of Period $ 10.45 $ 10.08 $ 12.74 $ 16.41 $ 16.00 =========== =========== ============ ============ ============ Total Return(f) 4.08%(g)(h) (18.14)%(h) (15.34)%(h) 9.27%(h) 14.81%(h) =========== =========== ============ ============ ============ Ratios to Average Net Data: Assets/Supplemental Expenses(i) 1.48%(j) 1.28% 1.19% 1.14% 1.15% Net investment income(i) 0.30%(j) 0.25% 0.22% 0.30% 0.66% Waiver/reimbursement --%(j)(k) 0.24% 0.03% 0.10% 0.15% Portfolio turnover rate 21%(g) 13% 19% 42% 20% Net assets, end of period (000's) $ 6,368 $ 15 $ 60 $ 156 $ 150
_________________________________ (a) On December 9, 2002, the Galaxy Growth & Income Fund, Prime A shares were redesignated Liberty Large Cap Core Fund, Class A shares. (b) The Fund began issuing Prime A shares on November 1, 1998. (c) Net investment income per share before reimbursement of certain expenses for the six months ended April 30, 2003 and the years ended October 31, 2002, 2001, 2000 and 1999 was $0.02, $0.01, $0.02, $0.03 and $0.09, respectively. (d) Per share data was calculated using average shares outstanding during the period. (e) Rounds to less than $0.01 per share. (f) Total return at net asset value assuming all distributions reinvested and no initial sales charge or contingent deferred sales charge. (g) Not annualized. (h) Had the Advisor and/or any of its affiliates not waived or reimbursed a portion of expenses, total return would have been reduced. (i) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (j) Annualized. (k) Rounds to less than 0.01%. See Notes to Financial Statements. 110 LIBERTY LARGE CAP CORE FUND FINANCIAL HIGHLIGHTS (CONTINUED) SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED) SIX MONTHS ENDED YEAR ENDED OCTOBER 31, APRIL 30, -------------------------------------------------------------- CLASS B SHARES 2003 (a) 2002 2001 2000 1999 (b) ----------- ----------- ------------ ------------ ------------ Net Asset Value, Beginning of Period $ 9.90 $ 12.59 $ 16.32 $ 15.97 $ 14.88 ----------- ----------- ------------ ------------ ------------ Income from Investment Operations: Net investment loss(c) (0.02)(d) (0.06)(d) (0.07) (0.07) (0.01)(d) Net realized and unrealized gain (loss) on investments 0.39 (2.19) (2.38) 1.33 2.03 ----------- ----------- ------------ ------------ ------------ Total from Investment Operations 0.37 (2.25) (2.45) 1.26 2.02 ----------- ----------- ------------ ------------ ------------ Less Distributions Declared to Shareholders: From net investment income (0.01) -- -- -- (0.02) From net realized gains -- (0.44) (1.28) (0.91) (0.91) ----------- ----------- ------------ ------------ ------------ Total Distributions Declared to Shareholders (0.01) (0.44) (1.28) (0.91) (0.93) ----------- ----------- ------------ ------------ ------------ Net Asset Value, End of Period $ 10.26 $ 9.90 $ 12.59 $ 16.32 $ 15.97 =========== =========== ============ ============ ============ Total Return(e)(f) 3.73%(g) (18.75)% (15.95)% 8.38% 13.98% =========== =========== ============ ============ ============ Ratios to Average Net Assets/Supplemental Data: Expenses(h) 2.06%(i) 2.02% 1.96% 1.89% 1.90% Net investment loss(h) (0.42)%(i) (0.49)% (0.55)% (0.45)% (0.09)% Waiver/reimbursement --%(i)(j) 0.02% 0.04% 0.18% 0.27% Portfolio turnover rate 21%(g) 13% 19% 42% 20% Net assets, end of period (000's) $ 375 $ 55 $ 109 $ 129 $ 129
___________________________________ (a) On December 9, 2002, the Galaxy Growth & Income Fund, Prime B shares were redesignated Liberty Large Cap Core Fund, Class B shares. (b) The Fund began issuing Prime B shares on November 1, 1998. (c) Net investment income per share before reimbursement of certain expenses for the six months ended April 30, 2003 and the years ended October 31, 2002, 2001, 2000 and 1999 was $(0.02), $(0.06), $(0.07), $(0.10) and $(0.05), respectively. (d) Per share data was calculated using average shares outstanding during the period. (e) Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge. (f) Had the Advisor and/or any of its affiliates not waived or reimbursed a portion of expenses, total return would have been reduced. (g) Not annualized. (h) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (i) Annualized. (j) Rounds to less than 0.01%. See Notes to Financial Statements. 111 LIBERTY LARGE CAP CORE FUND FINANCIAL HIGHLIGHTS (CONTINUED) SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD IS AS FOLLOWS: (UNAUDITED) PERIOD ENDED APRIL 30, CLASS C SHARES 2003 (a) ------------- Net Asset Value, Beginning of Period $ 10.13 ------------- Income from Investment Operations: Net investment loss(b)(c) (0.03) Net realized and unrealized gain on investments 0.17 ------------- Total from Investment Operations 0.14 ------------- Less Distributions Declared to Shareholders: From net investment income (0.01) ------------- Net Asset Value, End of Period $ 10.26 ============= Total Return(d)(e) 1.38% ============= Ratios to Average Net Assets/Supplemental Data: Expenses(f)(g) 2.12% Net investment loss(f)(g) (0.65)% Waiver/reimbursement(g) --% Portfolio turnover rate(e) 21% Net assets, end of period (000's) $ 106 __________________________________ (a) Class C shares were initially offered on December 9, 2002. Per share data and total return reflect activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Net investment income per share before reimbursement of certain expenses for the period ended April 30, 2003 was $(0.03). (d) Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge. (e) Not annualized. (f) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (g) Annualized. (h) Rounds to less than 0.01%. See Notes to Financial Statements. 112 LIBERTY LARGE CAP CORE FUND FINANCIAL HIGHLIGHTS (CONTINUED) SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED) SIX MONTHS ENDED YEAR ENDED MARCH 31, APRIL 30, -------------------------------------------------------------------------------- CLASS G SHARES 2003 (a) 2002 2001 2000 1999 1998 ----------- --------- ------------ ------------ ------------ ----------- Net Asset Value, Beginning of Period $ 9.82 $ 12.50 $ 16.23 $ 15.90 $ 14.83 $ 16.23 ----------- --------- ------------ ------------ ------------ ----------- Income from Investment Operations: Net investment loss(b) (0.01)(c) (0.06)(c) (0.09) (0.10) (0.04)(c) --(d) Net realized and unrealized gain (loss) on investments 0.37 (2.18) (2.36) 1.34 2.02 1.31 ----------- --------- ------------ ------------ ------------ ----------- Total from Investment Operations 0.36 (2.24) (2.45) 1.24 1.98 1.31 ----------- --------- ------------ ------------ ------------ ----------- Less Distributions Declared to Shareholders: From net investment income (0.01) -- -- -- -- (0.03) From net realized gains -- (0.44) (1.28) (0.91) (0.91) (2.68) ----------- --------- ------------ ------------ ------------ ----------- Total Distributions Declared to Shareholders (0.01) (0.44) (1.28) (0.91) (0.91) (2.71) ----------- --------- ------------ ------------ ------------ ----------- Net Asset Value, End of Period $ 10.17 $ 9.82 $ 12.50 $ 16.23 $ 15.90 $ 14.83 =========== ========= ============ ============ ============ =========== Total Return(e) 3.66%(f)(g) (18.80)%(g) (16.11)% 8.35% 13.72%(g) 9.09% =========== ========= ============ ============ ============ =========== Ratios to Average Net Assets/Supplemental Data: Expenses(h) 2.13%(i) 2.08% 2.05% 2.04% 2.03% 2.02% Net investment (0.24)%(i) (0.55)% (0.64)% (0.60)% (0.22)% 0.01% income (loss)(h) Waiver/reimbursement --%(i)(j) 0.02% --% --% 0.01% --% Portfolio turnover rate 21%(f) 13% 19% 42% 20% 38% Net assets, end of period (000's) $ 34,283 $ 31,407 $ 48,512 $ 61,857 $ 62,366 $ 53,216
_______________________________ (a) On December 9, 2002, the Galaxy Growth & Income Fund, Retail B shares were redesignated Liberty Large Cap Core Fund, Class G shares. (b) Net investment income per share before reimbursement of certain expenses for the six months ended April 30, 2003 and the years ended October 31, 2002, 2001, 2000, 1999 and 1998 was $(0.01), $(0.07), $(0.09), $(0.10), $(0.04) and $0.00, respectively. (c) Per share data was calculated using average shares outstanding during the period. (d) Rounds to less than $0.01 per share. (e) Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge. (f) Not annualized. (g) Had the Advisor and/or any of its affiliates not waived or reimbursed a portion of expenses, total return would have been reduced. (h) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (i) Annualized. (j) Rounds to less than 0.01%. See Notes to Financial Statements. 113 LIBERTY LARGE CAP CORE FUND FINANCIAL HIGHLIGHTS (CONTINUED) SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED) SIX MONTHS ENDED YEAR ENDED OCTOBER 31, APRIL 30, -------------------------------------------------------------------------------- CLASS T SHARES 2003 (a) 2002 2001 2000 1999 1998 ----------- --------- ------------ ----------- ------------ ----------- Net Asset Value, Beginning of Period $ 10.05 $ 12.70 $ 16.37 $ 15.98 $ 14.87 $ 16.24 ----------- --------- ------------ ----------- ------------ ----------- Income from Investment Operations: Net investment income(b) 0.02(c) 0.02(c) 0.02 0.02 0.08(c) 0.12 Net realized and unrealized gain (loss) on investments 0.39 (2.22) (2.39) 1.33 2.02 1.32 ----------- --------- ------------ ----------- ------------ ----------- Total from Investment Operations 0.41 (2.20) (2.37) 1.35 2.10 1.44 ----------- --------- ------------ ----------- ------------ ----------- Less Distributions Declared to Shareholders: From net investment income (0.04) (0.01) (0.02) (0.05) (0.08) (0.13) In excess of net investment income -- -- --(d) --(d) -- -- From net realized gains -- (0.44) (1.28) (0.91) (0.91) (2.68) ----------- --------- ------------ ----------- ------------ ----------- Total Distributions Declared to Shareholders (0.04) (0.45) (1.30) (0.96) (0.99) (2.81) ----------- --------- ------------ ----------- ------------ ----------- Net Asset Value, End of Period $ 10.42 $ 10.05 $ 12.70 $ 16.37 $ 15.98 $ 14.87 =========== ========= ============ =========== ============ =========== Total Return(e)(f) 4.07%(g) (18.16)% (15.46)% 9.06% 14.56% 9.93% =========== ========= ============ =========== ============ =========== Ratios to Average Net Assets/Supplemental Data: Expenses(h) 1.41%(i) 1.35% 1.34% 1.28% 1.28% 1.28% Net investment income(h) 0.48%(i) 0.18% 0.07% 0.16% 0.53% 0.75% Waiver/reimbursement --%(i)(j) 0.01% 0.02% 0.09% 0.10% 0.07% Portfolio turnover rate 21%(g) 13% 19% 42% 20% 38% Net assets, end of period (000's) $ 176,425 $ 180,269 $ 259,884 $ 217,423 $ 232,110 $ 214,110
__________________________ (a) On December 9, 2002, the Galaxy Growth & Income Fund, Retail A shares were redesignated Liberty Large Cap Core Fund, Class T shares. (b) Net investment income per share before reimbursement of certain expenses for the six months ended April 30, 2003 and the years ended October 31, 2002, 2001, 2000, 1999 and 1998 was $0.02, $0.02, $0.02, $0.01, $0.07 and $0.10, respectively. (c) Per share data was calculated using average shares outstanding during the period. (d) Rounds to less than $0.01 per share. (e) Total return at net asset value assuming all distributions reinvested and no initial sales charge or contingent deferred sales charge. (f) Had the Advisor and/or any of its affiliates not waived or reimbursed a portion of expenses, total return would have been reduced. (g) Not annualized. (h) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (i) Annualized. (j) Rounds to less than 0.01%. See Notes to Financial Statements. 114 LIBERTY LARGE CAP CORE FUND FINANCIAL HIGHLIGHTS (CONTINUED) SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED) SIX MONTHS ENDED YEAR ENDED OCTOBER 31, APRIL 30, -------------------------------------------------------------------------------- CLASS Z SHARES 2003 (a) 2002 2001 2000 1999 1998 ----------- --------- ------------ ----------- ------------ ----------- Net Asset Value, Beginning of Period $ 10.11 $ 12.77 $ 16.43 $ 16.02 $ 14.90 $ 16.28 ----------- --------- ------------ ----------- ------------ ----------- Income from Investment Operations: Net investment income(b) 0.04(c) 0.07(c) 0.06 0.08 0.13(c) 0.15 Net realized and unrealized gain (loss) on investments 0.38 (2.23) (2.39) 1.32 2.02 1.31 ----------- --------- ------------ ----------- ------------ ----------- Total from Investment Operations 0.42 (2.16) (2.33) 1.40 2.15 1.46 ----------- --------- ------------ ----------- ------------ ----------- Less Distributions Declared to Shareholders: From net investment income (0.06) (0.06) (0.05) (0.08) (0.12) (0.16) In excess of net investment income -- -- --(d) --(d) -- -- From net realized gains -- (0.44) (1.28) (0.91) (0.91) (2.68) ----------- --------- ------------ ----------- ------------ ----------- Total Distributions Declared to Shareholders (0.06) (0.50) (1.33) (0.99) (1.03) (2.84) ----------- --------- ------------ ----------- ------------ ----------- Net Asset Value, End of Period $ 10.47 $ 10.11 $ 12.77 $ 16.43 $ 16.02 $ 14.90 =========== ========= ============ =========== ============ =========== Total Return(e) 4.15%(f)(g) (17.85)%(g) (15.12)% 9.38% 14.85% 10.10% =========== ========= ============ =========== ============ =========== Ratios to Average Net Assets/Supplemental Data: Expenses(h) 1.03%(i) 0.97% 0.97% 1.00% 1.05% 1.03% Net investment income(h) 0.88%(i) 0.56% 0.44% 0.44% 0.76% 1.00% Waiver/reimbursement --%(i)(j) 0.03% --% -- % --% --% Portfolio turnover rate 21%(f) 13% 19% 42% 20% 38% Net assets, end of period (000's) $ 198,181 $ 340,496 $ 460,302 $ 678,398 $ 309,106 $ 254,060
____________________________ (a) On December 9, 2002, the Galaxy Growth & Income Fund, Trust shares were redesignated Liberty Large Cap Core Fund, Class Z shares. (b) Per share data was calculated using average shares outstanding during the period. (c) The net investment income per share before reimbursement of certain expenses for the six months ended April 30, 2003 and the years ended October 31, 2002, 2001, 2000, 1999 and 1998 was $0.04, $0.06, $0.06, $0.08, $0.13 and $0.15, respectively. (d) Rounds to less than $0.01 per share. (e) Total return at net asset value assuming all distributions reinvested. (f) Not annualized. (g) Had the Advisor and/or any of its affiliates not waived or reimbursed a portion of expenses, total return would have been reduced. (h) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (i) Annualized. (j) Rounds to less than 0.01%. See Notes to Financial Statements. 115 LIBERTY SMALL CAP FUND FINANCIAL HIGHLIGHTS SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED) SIX MONTHS ENDED YEAR ENDED OCTOBER 31, APRIL 30, --------------------------------------------------------------- CLASS A SHARES 2003 (a) 2002 2001 2000 1999 (b) ----------- --------- ------------ ----------- ------------ Net Asset Value, Beginning of Period $ 12.64 $ 14.05 $ 14.33 $ 13.04 $ 13.59 ----------- --------- ------------ ----------- ------------ Income from Investment Operations: Net investment income (loss)(c) --(d)(e) (0.03)(e) 0.02(e) 0.05(e) 0.03 Net realized and unrealized (gain) loss on investments 0.78 (0.07) 1.61 2.64 0.73 ----------- --------- ------------ ----------- ------------ Total from Investment Operations 0.78 (0.10) 1.63 2.69 0.76 ----------- --------- ------------ ----------- ------------ Less Distributions Declared to Shareholders: From net investment -- -- (0.04) (0.04) (0.04) income From net realized gains (0.65) (1.31) (1.87) (1.36) (1.27) ----------- --------- ------------ ----------- ------------ Total Distributions Declared to Shareholders (0.65) (1.31) (1.91) (1.40) (1.31) ----------- --------- ------------ ----------- ------------ Net Asset Value, End of Period $ 12.77 $ 12.64 $ 14.05 $ 14.33 $ 13.04 =========== ========= ============ =========== ============ Total Return(f)(g) 6.20%(h) (1.73)% 12.87% 22.26% 5.80% =========== ========= ============ =========== ============ Ratios to Average Net Assets/Supplemental Data: Expenses(i) 1.16%(j) 1.29% 1.23% 1.16% 1.18% Net investment (0.04)%(j) (0.19)% 0.17% 0.36% 0.26% income (loss)(i) Waiver/reimbursement 0.01%(j) 0.01% 0.04% 0.16% 0.22% Portfolio turnover rate 9%(h) 23% 46% 43% 42% Net assets, end of period (000's) $ 8,559 $ 210 $ 168 $ 189 $ 175
________________________________ (a) On November 18, 2002, the Galaxy Small Cap Value Fund, Prime A shares were redesignated Liberty Small Cap Fund, Class A shares. (b) The Fund began offering Prime A shares on November 1, 1998. (c) Net investment income per share before reimbursement of certain expenses for the six months ended April 30, 2003 and the years ended October 31, 2002, 2001, 2000 and 1999 was $(0.00), $(0.03), $0.02, $0.03 and $0.00, respectively. (d) Rounds to less than $0.01 per share. (e) Per share data was calculated using average shares outstanding during the period. (f) Total return at net asset value assuming all distributions reinvested and no initial sales charge or contingent deferred sales charge. (g) Had the Advisor and/or any of its affiliates not waived or reimbursed a portion of expenses, total return would have been reduced. (h) Not annualized. (i) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (j) Annualized. See Notes to Financial Statements. 116 LIBERTY SMALL CAP FUND FINANCIAL HIGHLIGHTS (CONTINUED) SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED) SIX MONTHS ENDED YEAR ENDED OCTOBER 31, APRIL 30, --------------------------------------------------------------- CLASS B SHARES 2003 (a) 2002 2001 2000 1999 (b) ----------- --------- ------------ ----------- ----------- Net Asset Value, Beginning of Period $ 12.31 $ 13.82 $ 14.19 $ 12.98 $ 13.59 ----------- --------- ------------ ----------- ----------- Income from Investment Operations: Net investment loss(c) (0.05)(d) (0.14)(d) (0.10)(d) (0.05)(d) (0.05) Net realized and unrealized (gain) loss on investments 0.75 (0.06) 1.60 2.62 0.71 ----------- --------- ------------ ----------- ----------- Total from Investment Operations 0.70 (0.20) 1.50 2.57 0.66 ----------- --------- ------------ ----------- ----------- Less Distributions Declared to Shareholders: From net realized gains (0.65) (1.31) (1.87) (1.36) (1.27) ----------- --------- ------------ ----------- ----------- Net Asset Value, End of Period $ 12.36 $ 12.31 $ 13.82 $ 14.19 $ 12.98 =========== ========= ============ =========== =========== Total Return(e)(f) 5.70%(g) (2.55)% 11.91% 21.46% 4.96%(i) =========== ========= ============ =========== =========== Ratios to Average Net Assets/Supplemental Data: Expenses(h) 1.97%(i) 2.12% 2.08% 1.93% 1.93% Net investment loss(h) (0.84)%(i) (1.02)% (0.68)% (0.41)% (0.49)% Waiver/reimbursement 0.01%(i) 0.01% 0.07% 0.53% 0.56% Portfolio turnover rate 9%(g) 23% 46% 43% 42% Net assets, end of period (000's) $ 2,211 $ 282 $ 198 $ 170 $ 190
________________________________ (a) On November 18, 2002, the Galaxy Small Cap Value Fund, Prime B shares were redesignated Liberty Small Cap Fund, Class B shares. (b) The Fund began offering Prime B shares on November 1, 1998. (c) Net investment income per share before reimbursement of certain expenses for the six months ended April 30, 2003 and the years ended October 31, 2002, 2001, 2000 and 1999 was $(0.05), $(0.14), $(0.11), $(0.13) and $ (0.10), respectively. (d) Per share data was calculated using average shares outstanding during the period. (e) Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge. (f) Had the Advisor and/or any of its affiliates not waived or reimbursed a portion of expenses, total return would have been reduced. (g) Not annualized. (h) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (i) Annualized. See Notes to Financial Statements. 117 LIBERTY SMALL CAP FUND FINANCIAL HIGHLIGHTS (CONTINUED) SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD IS AS FOLLOWS: (UNAUDITED) PERIOD ENDED APRIL 30, CLASS C SHARES 2003 (a) ------------- Net Asset Value, Beginning of Period $ 12.46 ------------- Income from Investment Operations: Net investment loss(b)(c) (0.06) Net realized and unrealized loss on investments 0.62 ------------- Total from Investment Operations 0.56 ------------- Less Distributions Declared to Shareholders: From net realized gains (0.65) ------------- Net Asset Value, End of Period $ 12.37 ============= Total Return(d)(e)(f) 4.51% ============= Ratios to Average Net Assets/Supplemental Data: Expenses(g)(h) 2.12% Net investment loss(g)(h) (1.05)% Waiver/reimbursement(h) 0.01% Portfolio turnover rate(f) 9% Net assets, end of period (000's) $ 1,325 ______________________________ (a) Class C shares were initially offered on November 18, 2002. Per share data and total return reflect activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Net investment income per share before reimbursement of certain expenses for the period ended April 30, 2003 was $(0.05). (d) Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge. (e) Had the Advisor and/or any of its affiliates not waived or reimbursed a portion of expenses, total return would have been reduced. (f) Not annualized. (g) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (h) Annualized. See Notes to Financial Statements. 118 LIBERTY SMALL CAP FUND FINANCIAL HIGHLIGHTS (CONTINUED) SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED) SIX MONTHS ENDED YEAR ENDED OCTOBER 31, APRIL 30, --------------------------------------------------------------- CLASS G SHARES 2003 (a) 2002 2001 2000 1999 (b) ----------- --------- ------------ ----------- ----------- Net Asset Value, Beginning of Period $ 12.22 $ 13.72 $ 14.13 $ 12.96 $ 13.59 ----------- --------- ------------ ----------- ----------- Income from Investment Operations: Net investment income(c) (0.06)(d) (0.14)(d) (0.11)(d) (0.10)(d) (0.04) Net realized and unrealized gain (loss) on investments 0.74 (0.05) 1.57 2.63 0.68 ----------- --------- ------------ ----------- ----------- Total from Investment Operations 0.68 (0.19) 1.46 2.53 0.64 ----------- --------- ------------ ----------- ----------- Less Distributions Declared to Shareholders: From net realized gains (0.65) (1.31) (1.87) (1.36) (1.27) ----------- --------- ------------ ----------- ----------- Net Asset Value, End of Period $ 12.25 $ 12.22 $ 13.72 $ 14.13 $ 12.96 =========== ========= ============ =========== =========== Total Return(e) 5.57%(f)(g) (2.49)%(g) 11.73% 21.06%(g) 4.80%(g) =========== ========= ============ =========== =========== Ratios to Average Net Assets/Supplemental Data: Expenses(h) 2.25%(i) 2.12% 2.21% 2.23% 2.10% Net investment income(h) (1.06)%(i) (1.02)% (0.80)% (0.71)% (0.66)% Waiver/reimbursement 0.01%(i) 0.01% --% 0.18% 0.78% Portfolio turnover rate 9%(f) 23% 46% 43% 42% Net assets, end of period (000's) $ 9,129 $ 9,046 $ 5,278 $ 2,838 $ 1,637
_________________________________ (a) On November 18, 2002, the Galaxy Small Cap Value Fund, Retail B shares were redesignated Liberty Small Cap Fund, Class G shares. (b) The Fund began offering Retail B shares on November 1, 1998. (c) Net investment income per share before reimbursement of certain expenses for the six months ended April 30, 2003 and the years ended October 31, 2002, 2001, 2000 and 1999 was $(0.06), $(0.14), $0.07, $(0.12) and $(0.09), respectively. (d) Per share data was calculated using average shares outstanding during the period. (e) Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge. (f) Not annualized. (g) Had the Advisor and/or any of its affiliates not waived or reimbursed a portion of expenses, total return would have been reduced. (h) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (i) Annualized. See Notes to Financial Statements. 119 LIBERTY SMALL CAP FUND FINANCIAL HIGHLIGHTS (CONTINUED) SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED) SIX MONTHS ENDED YEAR ENDED OCTOBER 31, APRIL 30, ------------------------------------------------------------------------------ CLASS T SHARES 2003 (a) 2002 2001 2000 1999 1998 ----------- --------- ------------ ---------- ----------- --------- Net Asset Value, Beginning of Period $ 12.55 $ 13.96 $ 14.25 $ 12.98 $ 13.53 $ 18.29 ----------- --------- ------------ ---------- ----------- --------- Income from Investment Operations: Net investment income (loss)(b) (0.01)(c) (0.03)(c) --(c)(d) 0.01(c) 0.02 0.08 Net realized and unrealized gain (loss) on investments 0.76 (0.07) 1.59 2.63 0.73 (2.08) ----------- --------- ------------ ---------- ----------- --------- Total from Investment Operations 0.75 (0.10) 1.59 2.64 0.75 (2.00) ----------- --------- ------------ ---------- ----------- --------- Less Distributions Declared to Shareholders: From net investment income -- -- (0.01) (0.01) (0.03) (0.08) From net realized gains (0.65) (1.31) (1.87) (1.36) (1.27) (2.68) ----------- --------- ------------ ---------- ----------- --------- Total Distributions Declared to Shareholders (0.65) (1.31) (1.88) (1.37) (1.30) (2.76) ----------- --------- ------------ ---------- ----------- --------- Net Asset Value, End of Period $ 12.65 $ 12.55 $ 13.96 $ 14.25 $ 12.98 $ 13.53 =========== ========= ============ ========== =========== ========= Total Return(e) 6.09%(f)(g) (1.75)%(f) 12.66% 21.96%(f) 5.68%(f) (12.52)%(f) =========== ========= ============ ========== =========== ========= Ratios to Average Net Assets/Supplemental Data: Expenses(h) 1.38%(i) 1.33% 1.42% 1.44% 1.31% 1.31% Net investment income (0.19)%(i) (0.23)% (0.02)% 0.08% 0.13% 0.38% (loss)(h) Waiver/reimbursement 0.01%(i) 0.01% --% 0.11% 0.28% 0.14% Portfolio turnover rate 9%(g) 23% 46% 43% 42% 33% Net assets, end of period (000's) $ 114,666 $ 115,468 $ 100,159 $ 87,457 $ 80,870 $ 87,781
_________________________________ (a) On November 18, 2002, the Galaxy Small Cap Value Fund, Retail A shares were redesignated Liberty Small Cap Fund, Class T shares. (b) Net investment income per share before reimbursement of certain expenses for the six months ended April 30, 2003 and the years ended October 31, 2002, 2001, 2000, 1999 and 1998 was $(0.01), $(0.03), $0.00, $0.00, $(0.02) and $0.05, respectively. (c) Per share data was calculated using average shares outstanding during the period. (d) Rounds to less than $0.01 per share. (e) Total return at net asset value assuming all distributions reinvested and no initial sales charge or contingent deferred sales charge. (f) Had the Advisor and/or any of its affiliates not waived or reimbursed a portion of expenses, total return would have been reduced. (g) Not annualized. (h) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (i) Annualized. See Notes to Financial Statements. 120 LIBERTY SMALL CAP FUND FINANCIAL HIGHLIGHTS (CONTINUED) SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED) SIX MONTHS ENDED YEAR ENDED OCTOBER 31, APRIL 30, --------------------------------------------------------------- 2003(a) 2002 2001 2000 1999 1998 --------- --------- --------- ---------- -------- --------- Class Z Shares Net Asset Value, Beginning of Period $ 12.75 $ 14.11 $ 14.38 $ 13.07 $ 13.61 $ 18.37 --------- --------- --------- ---------- -------- --------- Income from Investment Operations: Net investment income(b) 0.02(c) 0.03(c) 0.07(c) 0.08(c) 0.05 0.11 Net realized and unrealized gain (loss) on investments 0.77 (0.07) 1.60 2.65 0.74 (2.06) --------- --------- --------- ---------- -------- --------- Total from Investment Operations 0.79 (0.04) 1.67 2.73 0.79 (1.95) --------- --------- --------- ---------- -------- --------- Less Distributions Declared to Shareholders: From net investment income (0.01) (0.01) (0.07) (0.06) (0.06) (0.13) From net realized gains (0.65) (1.31) (1.87) (1.36) (1.27) (2.68) --------- --------- -------- ---------- -------- --------- Total Distributions Declared to Shareholders. (0.66) (1.32) (1.94) (1.42) (1.33) (2.81) --------- --------- -------- ---------- -------- --------- Net Asset Value, End of Period $ 12.88 $ 12.75 $ 14.11 $ 14.38 $ 13.07 $ 13.61 ========= ========= ========= ========== ======== ========= Total Return(d) 6.24%(e)(f) (1.26)%(f) 13.20% 22.62% 6.02% (12.07)% ========= ========= ========= ========== ======== ========= Ratios to Average Net Assets/Supplemental Data: Expenses(g) 0.91%(h) 0.90% 0.92% 0.94% 0.97% 0.96% Net investment income(g) 0.28%(h) 0.20% 0.48% 0.58% 0.47% 0.73% Waiver/reimbursement 0.01%(h) 0.01% --% --% --% --% Portfolio turnover rate 9%(e) 23% 46% 43% 42% 33% Net assets, end of period (000's) $ 586,910 $ 485,197 $ 425,687 $ 332,703 $255,268 $ 202,385
_________________________________ (a) On November 18, 2002, the Galaxy Small Cap Value Fund, Trust shares were redesignated Liberty Small Cap Fund, Class Z shares. (b) Net investment income per share before reimbursement of certain expenses for the six months ended April 30, 2003 and the years ended October 31, 2002, 2001, 2000, 1999 and 1998 was $0.02, $0.03, $(0.11), $0.08, $0.05 and $0.11, respectively. (c) Per share data was calculated using average shares outstanding during the period. (d) Total return at net asset value assuming all distributions reinvested. (e) Not annualized. (f) Had the Advisor and/or any of its affiliates not waived or reimbursed a portion of expenses, total return would have been reduced. (g) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (h) Annualized. See Notes to Financial Statements. 121 LIBERTY SMALL COMPANY EQUITY FUND FINANCIAL HIGHLIGHTS SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD IS AS FOLLOWS: (UNAUDITED) PERIOD ENDED APRIL 30, 2003 (a) --------------- Class A Shares Net Asset Value, Beginning of Period $ 11.74 --------------- Income from Investment Operations: Net investment loss(b) (0.06) Net realized and unrealized loss on investments (0.02) --------------- Total from Investment Operations (0.08) --------------- Net Asset Value, End of Period $ 11.66 =============== Total Return(c)(d) (0.68)% =============== Ratios to Average Net Assets/Supplemental Data: Expenses(e)(f) 1.53% Net investment loss(e)(f) (1.26)% Portfolio turnover rate(d) 58% Net assets, end of period (000's) $ 60 ________________________ (a) Class A shares were initially offered on November 18, 2002. Per share data and total return reflect activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming all distributions reinvested and no initial sales charge or contingent deferred sales charge. (d) Not annualized. (e) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (f) Annualized. See Notes to Financial Statements. 122 LIBERTY SMALL COMPANY EQUITY FUND FINANCIAL HIGHLIGHTS (CONTINUED) SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD IS AS FOLLOWS: (UNAUDITED) PERIOD ENDED APRIL 30, 2003 (a) -------------- Class B Shares Net Asset Value, Beginning of Period $ 11.13 --------------- Income from Investment Operations: Net investment loss(b) (0.10) Net realized and unrealized loss on investments (0.02) --------------- Total from Investment Operations (0.12) --------------- Net Asset Value, End of Period $ 11.01 =============== Total Return(c)(d)(e) (1.08)% =============== Ratios to Average Net Assets/Supplemental Data: Expenses(f)(g) 2.41% Net investment loss(f)(g) (2.10)% Portfolio turnover rate(d) 58% Net assets, end of period (000's) $ 12 ______________________ (a) Class B shares were initially offered on November 18, 2002. Per share data reflects activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge. (d) Not annualized. (e) Had the Advisor not waived or reimbursed a portion of expenses, total return would have been reduced. (f) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (g) Annualized. See Notes to Financial Statements. 123 LIBERTY SMALL COMPANY EQUITY FUND FINANCIAL HIGHLIGHTS (CONTINUED) SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD IS AS FOLLOWS: (UNAUDITED) PERIOD ENDED APRIL 30, 2003 (a) --------------- Class C Shares Net Asset Value, Beginning of Period $ 11.13 --------------- Income from Investment Operations: Net investment loss(b) (0.08) Net realized and unrealized loss on investments (0.04) --------------- Total from Investment Operations (0.12) --------------- Net Asset Value, End of Period $ 11.01 =============== Total Return(c)(d)(e) (1.08)% =============== Ratios to Average Net Assets/Supplemental Data: Expenses(f)(g) 2.04% Net investment loss(f)(g) (1.79)% Portfolio turnover rate(d) 58% Net assets, end of period (000's) $ 2 _____________________________ (a) Class C shares were initially offered on November 18, 2002. Per share data reflects activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge. (d) Not annualized. (e) Had the Advisor not waived or reimbursed a portion of expenses, total return would have been reduced. (f) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (g) Annualized. See Notes to Financial Statements. 124 LIBERTY SMALL COMPANY EQUITY FUND FINANCIAL HIGHLIGHTS (CONTINUED) SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED) SIX MONTHS ENDED YEAR ENDED OCTOBER 31, APRIL 30, ---------------------------------------------------------------------- 2003(a) 2002 2001 2000 1999 1998 --------- --------- -------- -------- -------- ---------- CLASS G SHARES Net Asset Value, Beginning of Period $ 10.65 $ 14.30 $ 21.10 $ 15.31 $ 13.39 $ 20.73 --------- --------- -------- -------- -------- ---------- Income from Investment Operations: Net investment loss(b) (0.13)(c) (0.27)(c) (0.25) (0.37) (0.34) (0.30) Net realized and unrealized gain (loss) on investments 0.47 (3.38) (3.15) 6.16 2.26 (4.78) --------- --------- -------- -------- -------- ---------- Total from Investment Operations 0.34 (3.65) (3.40) 5.79 1.92 (5.08) --------- --------- -------- -------- -------- ---------- Less Distributions Declared to Shareholders: From net realized gains -- -- (3.40) -- -- (2.26) In excess of net realized gains -- -- --(d) -- -- -- --------- --------- -------- -------- -------- ---------- Total Distributions Declared to Shareholders -- -- (3.40) -- -- (2.26) --------- --------- -------- -------- -------- ---------- Net Asset Value, End of Period $ 10.99 $ 10.65 14.30 $ 21.10 $ 15.31 $ 13.39 ========= ========= ======== ======== ======== ========== Total Return(e) 3.19%(f)(g) (25.52)% (17.66)% 37.82%(g) 14.34%(g) (26.72)%(g) ========= ========= ======== ======== ======== ========== Ratios to Average Net Assets/ Supplemental Data: Expenses(h) 2.64%(i) 2.29% 2.25% 2.24% 2.16% 2.11% Net investment loss(h) (2.40)%(i) (1.97)% (1.74)% (1.79)% (2.04)% (1.78)% Waiver/reimbursement --% 0.03% --% 0.01% 0.16% 0.05% Portfolio turnover rate 58%(f) 96% 75% 91% 105% 78% Net assets, end of period (000's) $ 7,828 $ 9,148 $ 15,190 $ 18,936 $ 12,212 $ 12,565
_____________________________ (a) On November 18, 2002, the Galaxy Small Company Equity Fund, Retail B shares were redesignated Liberty Small Company Equity Fund, Class G shares. (b) Net investment income per share before reimbursement of certain expenses for the six months ended April 30, 2003 and the years ended October 31, 2002, 2001, 2000, 1999 and 1998 was $(0.13), $(0.27), $(0.25), $(0.38), $(0.37) and $(0.30), respectively. (c) Per share data was calculated using average shares outstanding during the period. (d) Rounds to less than $0.01 per share. (e) Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge. (f) Not annualized. (g) Had the Advisor not waived or reimbursed a portion of expenses, total return would have been reduced. (h) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (i) Annualized. See Notes to Financial Statements. 125 LIBERTY SMALL COMPANY EQUITY FUND FINANCIAL HIGHLIGHTS (CONTINUED) SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED) SIX MONTHS ENDED YEAR ENDED OCTOBER 31, APRIL 30, -------------------------------------------------------------------- 2003 (a) 2002 2001 2000 1999 1998 --------- -------- -------- --------- -------- ---------- CLASS T SHARES Net Asset Value, Beginning of Period $ 11.23 $ 14.95 $ 21.75 $ 15.66 $ 13.63 $ 20.94 --------- ------- -------- --------- -------- ---------- Income from Investment Operations: Net investment loss(b) (0.08)(c) (0.16)(c) (0.17) (0.22) (0.23) (0.19) Net realized and unrealized gain (loss) on investments 0.50 (3.56) (3.23) 6.31 2.26 (4.86) --------- ------- -------- --------- -------- ---------- Total from Investment Operations 0.42 (3.72) (3.40) 6.09 2.03 (5.05) --------- ------- -------- --------- -------- ---------- Less Distributions Declared to Shareholders: From net realized gains -- -- (3.40) -- -- (2.26) In excess of net realized gains -- -- --(d) -- -- -- --------- ------- -------- --------- -------- ---------- Total Distributions Declared to Shareholders -- -- (3.40) -- -- (2.26) --------- ------- -------- --------- -------- ---------- Net Asset Value, End of Period $ 11.65 $ 11.23 $ 14.95 $ 21.75 $ 15.66 $ 13.63 ========= ======= ======== ========= ======== ========== Total Return(e) 3.74%(f)(g) (24.88)%(g) (17.03)% 38.89% 14.89%(g) (26.26)%(g) ========= ======= ======== ========= ======== ========== Ratios to Average Net Assets /Supplemental Data: Expenses(h) 1.62%(i) 1.46% 1.42% 1.44% 1.53% 1.46% Net investment loss(h) (1.39)%(i) (1.14)% (0.91)% (0.99)% (1.41)% (1.13)% Waiver/reimbursement --% 0.03% --% --% 0.01% 0.01% Portfolio turnover rate 58%(f) 96% 75% 91% 105% 78% Net assets, end of period (000's) $ 55,391 $57,537 $ 84,332 $ 125,427 $ 87,921 $ 95,831
_____________________ (a) On November 18, 2002, the Galaxy Small Company Equity Fund, Retail A shares were redesignated Liberty Small Company Equity Fund, Class T shares. (b) Net investment income per share before reimbursement of certain expenses for the six months ended April 30, 2003 and the years ended October 31, 2002, 2001, 2000, 1999 and 1998 was $(0.08), $(0.17), $(0.17), $(0.22), $(0.23) and $(0.19), respectively. (c) Per share data was calculated using average shares outstanding during the period. (d) Rounds to less than $0.01 per share. (e) Total return at net asset value assuming all distributions reinvested and no initial sales charge or contingent deferred sales charge. (f) Not annualized. (g) Had the Advisor, or any of its affiliates, not waived or reimbursed a portion of expenses, total return would have been reduced. (h) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (i) Annualized. See Notes to Financial Statements. 126 LIBERTY SMALL COMPANY EQUITY FUND FINANCIAL HIGHLIGHTS (CONTINUED) SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED) SIX MONTHS YEAR ENDED OCTOBER 31, ENDED ---------------------------------------------------------------------- APRIL 30, 2003 (a) 2002 2001 2000 1999 1998 ---------- --------- --------- -------- --------- --------- CLASS Z SHARES Net Asset Value, Beginning of Period $ 11.79 $ 15.63 $ 22.48 $ 16.13 $ 13.96 $ 21.32 ---------- --------- --------- -------- --------- --------- Income from Investment Operations: Net investment loss(b) (0.05)(c) (0.11)(c) (0.10) (0.12) (0.16) (0.14) Net realized and unrealized gain (loss) on investments 0.53 (3.73) (3.35) 6.47 2.33 (4.96) ---------- --------- --------- -------- --------- --------- Total from Investment Operations 0.48 (3.84) (3.45) 6.35 2.17 (5.10) ---------- --------- --------- -------- --------- --------- Less Distributions Declared to Shareholders: From net realized gains -- -- (3.40) -- -- (2.26) In excess of net realized gains -- -- --(d) -- -- -- ---------- --------- --------- -------- --------- --------- Total Distributions Declared to Shareholders -- -- (3.40) -- -- (2.26) ---------- --------- --------- -------- --------- --------- Net Asset Value, End of Period $ 12.27 $ 11.79 $ 15.63 $ 22.48 $ 16.13 $ 13.96 ========== ========= ========= ======== ========= ========= Total Return(e) 4.07%(f)(g) (24.62)%(g) (16.63)% 39.43% 15.54% (26.00)% ========== ========= ========= ======== ========= ========= Ratios to Average Net Assets/ Supplemental Data: Expenses(h) 1.10%(i) 1.04% 1.03% 1.03% 1.12% 1.09% Net investment loss(h) (0.86)%(i) (0.72)% (0.52)% (0.58)% (1.00)% (0.76)% Waiver/reimbursement --% 0.01% --% --% --% --% Portfolio turnover rate 58%(f) 96% 75% 91% 105% 78% Net assets, end of period (000's) $ 245,923 $ 217,377 $ 318,414 $422,579 $ 233,326 $ 222,675
____________________________ (a) On November 18, 2002, the Galaxy Small Company Equity Fund, Trust shares were redesignated Liberty Small Company Equity Fund, Class Z shares. (b) Net investment income per share before reimbursement of certain expenses for the six months ended April 30, 2003 and the years ended October 31, 2002, 2001, 2000, 1999 and 1998 was $(0.05), $(0.11), $(0.10), $(0.12), $(0.16) and $(0.14), respectively. (c) Per share data was calculated using average shares outstanding during the period. (d) Rounds to less than $0.01 per share. (e) Total return at net asset value assuming all distributions reinvested. (f) Not annualized. (g) Had the Advisor not waived or reimbursed a portion of expenses, total return would have been reduced. (h) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (i) Annualized. See Notes to Financial Statements. 127 LIBERTY STRATEGIC EQUITY FUND FINANCIAL HIGHLIGHTS SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD IS AS FOLLOWS: (UNAUDITED) PERIOD ENDED APRIL 30, 2003 (a) ------------ CLASS A SHARES Net Asset Value, Beginning of Period $ 9.01 ------------ Income from Investment Operations: Net investment income(b) 0.06 Net realized and unrealized loss on investments (0.50) ------------ Total from Investment Operations (0.44) ------------ Less Distributions Declared to Shareholders: From net investment income (0.04) ------------ Net Asset Value, End of Period $ 8.53 ============ Total Return(c)(d) (4.90)% ============ Ratios to Average Net Assets/Supplemental Data: Expenses(e)(f) 1.36% Net investment income(e)(f) 1.70% Portfolio turnover rate(d) 19% Net assets, end of period (000's) $ 87 _______________________________ (a) Class A shares were initially offered on November 25, 2002. Per share data and total return reflect activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming all distributions reinvested and no initial sales charge or contingent deferred sales charge. (d) Not annualized. (e) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (f) Annualized. See Notes to Financial Statements. 128 LIBERTY STRATEGIC EQUITY FUND FINANCIAL HIGHLIGHTS (CONTINUED) SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD IS AS FOLLOWS: (UNAUDITED) PERIOD ENDED APRIL 30, 2003 (a) ------------ CLASS B SHARES Net Asset Value, Beginning of Period $ 8.82 ------------ Income from Investment Operations: Net investment income(b) 0.04 Net realized and unrealized loss on investments (0.48) ------------ Total from Investment Operations (0.44) ------------ Less Distributions Declared to Shareholders: From net investment income (0.02) ------------ Net Asset Value, End of Period $ 8.36 ============ Total Return(c)(d) (5.02)% ============ Ratios to Average Net Assets/Supplemental Data: Expenses(e)(f) 2.25% Net investment income(e)(f) 1.08% Portfolio turnover rate(d) 19% Net assets, end of period (000's) $ 116 _____________________________ (a) Class B shares were initially offered on November 25, 2002. Per share data and total return reflect activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge. (d) Not annualized. (e) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (f) Annualized. See Notes to Financial Statements. 129 LIBERTY STRATEGIC EQUITY FUND FINANCIAL HIGHLIGHTS (CONTINUED) SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD IS AS FOLLOWS: (UNAUDITED) PERIOD ENDED APRIL 30, 2003 (a) ------------ CLASS C SHARES Net Asset Value, Beginning of Period $ 8.82 ------------ Income from Investment Operations: Net investment income(b) 0.06 Net realized and unrealized loss on investments (0.51) ------------ Total from Investment Operations (0.45) ------------ Less Distributions Declared to Shareholders: From net investment income (0.02) ------------ Net Asset Value, End of Period $ 8.35 ============ Total Return(c)(d) (5.13)% ============ Ratios to Average Net Assets/Supplemental Data: Expenses(e)(f) 2.31% Net investment income(e)(f) 1.66% Portfolio turnover rate(d) 19% Net assets, end of period (000's) $ 189 ______________________________ (a) Class C shares were initially offered on November 25, 2002. Per share data and total return reflect activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge. (d) Not annualized. (e) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (f) Annualized. See Notes to Financial Statements. 130 LIBERTY STRATEGIC EQUITY FUND FINANCIAL HIGHLIGHTS (CONTINUED) SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED) SIX MONTHS ENDED YEAR ENDED OCTOBER 31, APRIL 30, ---------------------------------------------------------------------- 2003 (a) 2002 2001 2000 1999 1998(B) ---------- ---------- -------- ------- -------- --------- CLASS G SHARES Net Asset Value, Beginning of Period $ 8.36 $ 9.87 $ 10.37 $ 9.84 $ 9.61 $ 10.00 ---------- ---------- -------- -------- -------- --------- Income from Investment Operations: Net investment income (loss)(c) 0.03(d) (0.07)(d) (0.06)(d) (0.04) (0.02)(d) (0.02) Net realized and unrealized gain (loss) on investments 0.03) (1.05)(e) (0.11) 1.75 0.26 (0.37) ---------- ---------- -------- ------- -------- --------- Total from Investment Operations -- (1.12) (0.17) 1.71 0.24 (0.39) ---------- ---------- -------- ------- -------- --------- Less Distributions Declared to Shareholders: From net investment income (0.02) -- -- --(f) -- -- From net realized gains -- (0.39) (0.33) (1.18) (0.01) -- ---------- ---------- -------- ------- -------- --------- Total Distributions Declared to Shareholders (0.02) (0.39) (0.33) (1.18) (0.01) -- ---------- ---------- -------- ------ -------- --------- Net Asset Value, End of Period $ 8.34 $ 8.36 $ 9.87 $ 10.37 $ 9.84 $ 9.61 ========== ========== ======== ======== ======== ========= Total Return(g) (0.01)%(h) (12.16)%(i) (1.71)%(i) 20.33%(i) 2.50%(i) (4.76)%(h)(i) ========== ========== ======== ======= ======== ========= Ratios to Average Net Assets/ Supplemental Data: Expenses(j) 2.33%(k) 2.17% 2.02% 1.95% 1.84% 2.01%(k) Net investment income (loss)(j) 0.69%(k) (0.72)% (0.53)% (0.35)% (0.24)% (0.55)%(k) Waiver/reimbursement --% 0.25% 0.24% 0.40% 0.44% 1.04%(k) Portfolio turnover rate 19%(h) 65% 81% 81% 79% 30%(h) Net assets, end of period (000's) $ 10,573 $ 2,093 $ 2,286 $ 1,555 $ 1,348 $ 583
______________________________ (a) On November 25, 2002, the Galaxy Strategic Equity Fund, Retail B shares were redesignated Liberty Strategic Equity Fund, Class G shares. (b) The Fund commenced operations on March 4, 1998. (c) Net investment income per share before reimbursement of certain expenses for the six months ended April 30, 2003 and the years ended October 31, 2002, 2001, 2000, 1999 and 1998 was $0.03, $(0.10), $0.06, $(0.08), $(0.08) and $(0.06), respectively. (d) Per share data was calculated using average shares outstanding during the period. (e) The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of repur- chases of Fund shares in relation to fluctuating market values of the investments of the Fund. (f) Rounds to less than $0.01 per share. (g) Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge. (h) Not annualized. (i) Had the Advisor and/or any of its affiliates not waived or reimbursed a portion of expenses, total return would have been reduced. (j) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (k) Annualized. See Notes to Financial Statements. 131 LIBERTY STRATEGIC EQUITY FUND FINANCIAL HIGHLIGHTS (CONTINUED) SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED) SIX MONTHS YEAR ENDED OCTOBER 31, ENDED --------------------------------------------------------------------- APRIL 30, CLASS T SHARES 2003 (a) 2002 2001 2000 1999 1998 (b) ---------- ---------- -------- ------- ------- ------- Net Asset Value, Beginning of Period $ 8.54 $ 10.02 $ 10.46 $ 9.89 $ 9.62 $ 10.00 ---------- ---------- -------- ------- ------- ------- Income from Investment Operations: Net investment income(c) 0.07(d) 0.01(d) 0.03(d) 0.04 0.04(d) --(e) Net realized and unrealized gain (loss) on investments (0.03) (1.08)(f) (0.11) 1.75 0.27 (0.38) ---------- ---------- -------- ------- ------- ------- Total from Investment Operations 0.04 (1.07) (0.08) 1.79 0.31 (0.38) ---------- ---------- -------- ------- ------- ------- Less Distributions Declared to Shareholders: From net investment income (0.05) (0.02) (0.03) (0.04) (0.03) -- From net realized gains -- (0.39) (0.33) (1.18) (0.01) -- ---------- ---------- -------- ------- ------- ------- Total Distributions Declared to Shareholders (0.05) (0.41) (0.36) (1.22) (0.04) -- ---------- ---------- -------- ------- ------- ------- Net Asset Value, End of Period $ 8.53 $ 8.54 $ 10.02 $ 10.46 $ 9.89 $ 9.62 ========== ========== ======== ======= ======= ======= Total Return(g) 0.48%(h) (11.50)%(i) (0.83)%(i) 21.09%(i) 3.25%(i) (3.75)%(h)(i) ========== ========== ======== ======= ======= ======= Ratios to Average Net Assets/ Supplemental Data: Expenses(j) 1.46%(k) 1.40% 1.24% 1.20% 1.19% 1.40%(k) Net investment income(j) 1.57%(k) 0.05% 0.25% 0.40% 0.41% 0.06%(k) Waiver/reimbursement --% 0.29% 0.26% 0.40% 0.44% 1.01%(k) Portfolio turnover rate 19%(h) 65% 81% 81% 79% 30%(h) Net assets, end of period (000's) $ 92,723 $ 6,578 $ 8,400 $ 8,505 $ 8,229 $ 4,051
_________________________________ (a) On November 25, 2002, the Galaxy Strategic Equity Fund, Retail A shares were redesignated Liberty Strategic Equity Fund, Class T shares. (b) The Fund commenced operations on March 4, 1998. (c) Net investment income per share before reimbursement of certain expenses for the six months ended April 30, 2003 and the years ended October 31, 2002, 2001, 2000, 1999 and 1998 was $0.07, $(0.02), $0.00, $0.00, $0.00 and $0.00, respectively. (d) Per share data was calculated using average shares outstanding during the period. (e) Rounds to less than $0.01 per share. (f) The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of repurchases of Fund shares in relation to fluctuating market values of the investments of the Fund. (g) Total return at net asset value assuming all distributions reinvested and no initial sales charge or contingent deferred sales charge. (h) Not annualized. (i) Had the Advisor and/or any of its affiliates not waived or reimbursed a portion of expenses, total return would have been reduced. (j) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (k) Annualized. See Notes to Financial Statements. 132 LIBERTY STRATEGIC EQUITY FUND FINANCIAL HIGHLIGHTS (CONTINUED) SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED) SIX MONTHS ENDED YEAR ENDED OCTOBER 31, APRIL 30, --------------------------------------------------------------------- CLASS Z SHARES 2003 (a) 2002 2001 2000 1999 1998(b) ---------- --------- --------- -------- -------- -------- Net Asset Value, Beginning of Period $ 8.56 $ 10.03 $ 10.48 $ 9.90 $ 9.63 $ 10.00 ---------- --------- --------- -------- -------- -------- Income from Investment Operations: Net investment income(c) 0.08(d) 0.06(d) 0.08(d) 0.08 0.09(d) 0.01 Net realized and unrealized gain (loss) on investments (0.03) (1.07)(e) (0.12) 1.76 0.27 (0.37) ---------- --------- --------- -------- -------- -------- Total from Investment Operations 0.05 (1.01) (0.04) 1.84 0.36 (0.36) ---------- --------- --------- -------- -------- -------- Less Distributions Declared to Shareholders: From net investment income (0.07) (0.07) (0.08) (0.08) (0.08) (0.01) From net realized gains -- (0.39) (0.33) (1.18) (0.01) -- ---------- --------- --------- -------- -------- -------- Total Distributions Declared to Shareholders (0.07) (0.46) (0.41) (1.26) (0.09) (0.01) ---------- --------- --------- -------- -------- -------- Net Asset Value, End of Period $ 8.54 $ 8.56 $ 10.03 $ 10.48 $ 9.90 $ 9.63 ========== ========= ========= ======== ======== ======== Total Return(f) 0.65%(g) (11.07)%(h) (0.43)%(h) 21.69%(h) 3.64%(h) (3.62)%(g)(h) ========== ========= ========= ======== ======== ======== Ratios to Average Net Assets/ Supplemental Data: Expenses(i) 0.88%(j) 0.82% 0.75% 0.78% 0.80% 1.27%(j) Net investment income(i) 2.13%(j) 0.63% 0.74% 0.83% 0.80% 0.19%(j) Waiver/reimbursement --% 0.24% 0.21% 0.20% 0.20% 0.20%(j) Portfolio turnover rate 19%(g) 65% 81% 81% 79% 30%(g) Net assets, end of period (000's) $ 78,152 $ 19,896 $ 102,909 $ 93,558 $ 71,063 $ 63,061
____________________________ (a) On November 25, 2002, the Galaxy Strategic Equity Fund, Trust shares were redesignated Liberty Strategic Equity Fund, Class Z shares. (b) The Fund commenced operations on March 4, 1998. (c) Net investment income per share before reimbursement of certain expenses for the six months ended April 30, 2003 and the years ended October 31, 2002, 2001, 2000, 1999 and 1998 was $0.08, $0.04, $(0.08), $0.06, $0.06 and $0.00, respectively. (d) Per share data was calculated using average shares outstanding during the period. (e) The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of repurchases of Fund shares in relation to fluctuating market values of the investments of the Fund. (f) Total return at net asset value assuming all distributions reinvested. (g) Not annualized. (h) Had the Advisor and/or any of its affiliates not waived or reimbursed a portion of expenses, total return would have been reduced. (i) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (j) Annualized. See Notes to Financial Statements. 133 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) NOTE 1. ORGANIZATION Liberty Asset Allocation Fund ("Asset Allocation Fund"), Liberty Equity Growth Fund ("Equity Growth Fund"), Liberty Equity Value Fund ("Equity Value Fund"), Liberty International Equity Fund ("International Equity Fund"), Liberty Large Cap Core Fund ("Large Cap Core Fund"), Liberty Small Cap Fund ("Small Cap Fund"), Liberty Small Company Equity Fund ("Small Company Equity Fund"), and Liberty Strategic Equity Fund ("Strategic Equity Fund") are each a series of the Liberty-Stein Roe Funds Investment Trust (the "Trust") (individually referred to as a "Fund", collectively the "Funds"). The Trust is a Massachusetts business trust registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. Each Fund is the successor to a separate series of The Galaxy Fund ("Galaxy"), a Massachusetts business trust organized on March 31, 1986. The series of Galaxy, to which the Funds succeeded, were reorganized as a separate series of the Trust. Each Fund's investment goal is to seek long-term growth of capital. The Funds may issue an unlimited number of shares. Each Fund currently offers six classes of shares: Class A, Class B, Class C, Class G, Class T and Class Z shares. Class A and Class T shares are sold with a front-end sales charge. A 1.00% contingent deferred sales charge ("CDSC") is assessed on Class A and Class T shares purchased without an initial sales charge on redemptions made within eighteen months on an original purchase of $1 million to $25 million. Class B and Class G shares are subject to a CDSC. Class B shares will convert to Class A shares in three, four or eight years after purchase depending on the program under which shares were purchased. Class G shares will convert to Class T shares in eight years after purchase. Class C shares are subject to a CDSC on redemptions made within one year after purchase. Class Z shares are offered continuously at net asset value. There are certain restrictions on the purchase of Class Z shares, as described in each Fund's prospectus. As of the end of business on November 15, 2002, the Stein Roe Balanced Fund, a separate series of the Trust, merged into the Trust shares of Galaxy Asset Allocation Fund. The Galaxy Asset Allocation Fund received a tax-free transfer of assets from the Stein Roe Balanced Fund as follows: SHARES NET ASSETS UNREALIZED ISSUED RECEIVED APPRECIATION 1 ------ -------- --------------- 9,749,490 $127,523,327 $8,458,670 NET ASSETS NET ASSETS NET ASSETS OF OF OF STEIN ROE ASSET ASSET BALANCED FUND ALLOCATION FUND ALLOCATION FUND IMMEDIATELY IMMEDIATELY PRIOR TO PRIOR TO AFTER COMBINATION COMBINATION COMBINATION ----------- ----------- ----------- $441,389,479 $127,523,327 $568,912,806 Unrealized appreciation is included in the Net Assets Received amount above. Also as of the end of business on November 15, 2002, subsequent to the merger described above, the Galaxy Asset Allocation Fund, previously a fund of Galaxy, was reorganized as the Asset Allocation Fund. Class A, Class B, Class G, Class T and Class Z shares were issued in exchange for Prime A, Prime B, Retail B, Retail A and Trust shares, respectively. Class C shares commenced operations on November 18, 2002. Differing amortization policies between the Liberty Asset Allocation Fund and the Stein Roe Balanced Fund resulted in reclassifications as follows: UNREALIZED APPRECIATION PAID-IN CAPITAL ----------------------- --------------- $64,867 $(64,867) As of the end of business on November 15, 2002, the Galaxy Equity Growth Fund, previously a fund of Galaxy, was reorganized as the Equity Growth Fund with Class A, Class B, Class G, Class T and Class Z shares issued in exchange for Prime A, Prime B, Retail B, Retail A and Trust shares, respectively. Class C shares commenced operations on November 18, 2002. As of the end of business on November 22, 2002, the Galaxy Equity Value Fund, previously a fund of Galaxy, was reorganized as the Equity Value Fund with Class G, Class T and Class Z shares issued in exchange for Retail B, Retail A and Trust shares, respectively. Class A, Class B and Class C shares commenced operations on November 25, 2002. As of the end of business on November 15, 2002, the Galaxy International Equity Fund, previously a fund of Galaxy, was reorganized as the International Equity Fund with Class A, Class B, Class G, Class T and Class Z shares issued in exchange for Prime A, Prime B, Retail B, Retail A and Trust shares, respectively. Class C shares commenced operations on November 18, 2002. As of the end of business on December 6, 2002, the Galaxy Large Cap Value Fund, Retail A, Retail B and Trust shares merged into the Galaxy Growth & Income Fund, Prime A, Retail B and Trust shares, respectively. The Galaxy Large Cap Value Fund and Galaxy Growth & Income Fund were both previously funds of Galaxy. The Galaxy Growth & Income Fund received a tax-free transfer of assets from Galaxy Large Cap Value Fund as follows: SHARES NET ASSETS UNREALIZED ISSUED RECEIVED APPRECIATION 1 ------ -------- --------------- 8,506,336 $88,215,757 $3,841,144 NET ASSETS NET ASSETS NET ASSETS OF OF OF GROWTH & LARGE CAP LARGE CAP INCOME FUND CORE FUND CORE FUND IMMEDIATELY IMMEDIATELY PRIOR TO PRIOR TO AFTER COMBINATION COMBINATION COMBINATION ----------- ----------- ----------- $560,578,780 $88,215,757 $648,794,537 1 Unrealized appreciation is included in the Net Assets Received amount above. 134 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) Also as of the end of business on December 6, 2002, subsequent to the merger described above, the Galaxy Growth & Income Fund was reorganized as the Liberty Large Cap Core Fund. Class A, Class B, Class G, Class T and Class Z shares were issued in exchange for Prime A, Prime B, Retail B, Retail A and Trust shares, respectively. Class C shares commenced operations on December 9, 2002. As of the end of business on November 15, 2002, the Galaxy Small Cap Value Fund, previously a fund of Galaxy, was reorganized as the Small Cap Fund with Class A, Class B, Class G, Class T and Class Z shares issued in exchange for Prime A, Prime B, Retail B, Retail A and Trust shares, respectively. Class C shares commenced operations on November 18, 2002. As of the end of business on November 15, 2002, the Galaxy Small Company Equity Fund, previously a fund of Galaxy, was reorganized as the Small Company Equity Fund with Class G, Class T and Class Z shares issued in exchange for Retail B, Retail A and Trust shares, respectively. Class A, Class B and Class C shares commenced operations on November 18, 2002. As of the end of business on November 22, 2002, the Galaxy Equity Income Fund, previously a fund of Galaxy, merged into Liberty Strategic Equity Fund (formerly known as Galaxy Strategic Equity Fund). The Strategic Equity Fund received a tax-free transfer of assets from Galaxy Equity Income Fund as follows: SHARES NET ASSETS UNREALIZED ISSUED RECEIVED DEPRECIATION 1 ------ -------- --------------- 20,955,088 $188,556,383 $(19,625,587) NET ASSETS NET ASSETS NET ASSETS OF GALAXY OF OF EQUITY STRATEGIC STRATEGIC INCOME FUND EQUITY FUND EQUITY FUND IMMEDIATELY IMMEDIATELY PRIOR TO PRIOR TO AFTER COMBINATION COMBINATION COMBINATION ----------- ----------- ----------- $30,204,471 $188,556,383 $218,760,854 1 Unrealized depreciation is included in the Net Assets Received amount above. Class G, Class T and Class Z shares of the Strategic Equity Fund were issued in exchange for Retail B, Retail A and Trust shares of Galaxy Equity Income Fund, respectively. Class A, Class B and Class C shares commenced operations on November 25, 2002. The accompanying statements of operations, statements of changes in net assets and financial highlights for these funds represent the historical operations of the Galaxy Asset Allocation Fund, Galaxy Equity Growth Fund, Galaxy International Equity Fund, Galaxy Small Cap Value Fund and Galaxy Small Company Equity Fund for periods prior to November 15, 2002, the Galaxy Equity Value Fund and Galaxy Strategic Equity Fund for periods prior to November 22, 2002 and the Galaxy Growth & Income Fund for periods prior to December 6, 2002. NOTE 2. SIGNIFICANT ACCOUNTING POLICIES The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure 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. The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of their financial statements. PORTFOLIO VALUATION: Investments in securities which are traded on a recognized stock exchange are valued at the last sale price on the securities exchange on which such securities are primarily traded or at the last sale price on the national securities market. Securities traded on over-the-counter markets are valued at the last bid price. Short-term obligations that mature in 60 days or less are valued at amortized cost, which approximates market value. All other securities and other assets are appraised at their fair value as determined in good faith under consistently applied procedures established by and under the general supervision of the Board of Trustees. Investments in other investment companies are valued at net asset value. SECURITY TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are accounted for on a trade date basis. Net realized gains or losses on sales of securities are determined by the identified cost method. Interest income is recorded on the accrual basis. Premium and discount are amortized and accreted, respectively on all debt securities. Dividend income is recorded on the ex-dividend date. Investment income and realized and unrealized gains and losses are allocated to each Fund based upon its relative net assets. FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS: The International Equity Fund may enter into forward foreign currency exchange contracts whereby a Fund agrees to buy or sell a specific currency at a specified price at a future date in an attempt to hedge against fluctuations in the value of the underlying currency of certain portfolio instruments. Forward foreign currency exchange contracts are valued at the daily exchange rate of the underlying currency. Purchases and sales of forward foreign currency exchange contracts having the same settlement date and broker are offset and presented on a net basis in the Statement of Assets and Liabilities. Gains or losses on the purchase or sale of forward foreign currency exchange contracts having the same settlement date and broker are recognized on the date of offset. Otherwise, gains or losses are recognized on the settlement date. FOREIGN CURRENCY TRANSLATION: The books and records of the International Equity Fund are maintained in U.S. dollars. Investment valuations and other assets and liabilities initially expressed in foreign currencies are converted each business day into U.S. dollars based upon current exchange rates. 135 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) Purchases and sales of foreign investments and income and expenses are converted into U.S. dollars based upon exchange rates prevailing on the respective dates of such transactions. That portion of unrealized gains or losses on investments due to fluctuations in foreign currency exchange rates is not separately disclosed. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS: Dividends from net investment income are declared and paid quarterly for each Fund, with the exception of the International Equity Fund. The International Equity Fund declares and pays dividends annually. Net realized capital gains for each of the Funds, if any, are distributed at least annually. FEDERAL INCOME TAXES: Each Fund intends to comply with the requirements of the Internal Revenue Code applicable to "regulated investment companies" by distributing substantially all taxable net investment income and net realized gains to its shareholders in a manner that results in no tax to the Funds. Therefore, no federal income or excise tax provision is required. REPURCHASE AGREEMENTS: Each Fund may engage in repurchase agreement transactions with institutions that the Trust's investment advisor has determined are creditworthy. Each repurchase agreement transaction is recorded at cost plus accrued interest. Each Fund requires that the securities collateralizing a repurchase agreement transaction be transferred to the Trust's custodian or a sub-custodian in a manner that is intended to enable the Fund to obtain those securities in the event of a counterparty default. The value of the collateral securities is monitored daily to ensure that the value of the collateral, including accrued interest, equals or exceeds the repurchase price. Repurchase agreement transactions involve certain risks in the event of default or insolvency of the counterparty, including possible delays or restrictions upon a Fund's ability to dispose of the underlying securities, and a possible decline in the value of the underlying securities during the period while the Fund seeks to assert its rights. DETERMINATION OF CLASS NET ASSET VALUES AND FINANCIAL HIGHLIGHTS: All income, expenses (other than class specific expenses), and realized and unrealized gains (losses) are allocated to each class proportionately on a daily basis for purposes of determining the net asset value of each class. Per share data and ratios are calculated by adjusting the expense and net investment income per share data and ratios for a fund for the entire period by the class specific fees applicable to each respective class of shares in that fund. ORGANIZATION COSTS: The Strategic Equity Fund has borne all costs in connection with its organization, including the fees and expenses of registering and qualifying its initial shares for distribution under federal and state securities laws. All such costs are amortized using the straight-line method over a period of five years, beginning with the commencement of the Fund's operation. As of April 30, 2003, all organization costs have been fully amortized. NOTE 3. FEDERAL TAX INFORMATION Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from accounting principles generally accepted in the United States. Reclassifications are made to the Funds' capital accounts to reflect income and gains available for distribution (or available capital loss carryforwards) under income tax regulations. The following capital loss carryforwards, determined as of October 31, 2002, are available to reduce taxable income arising from future net realized gains on investments, if any, to the extent permitted by the Internal Revenue Code: ASSET EQUITY EQUITY YEAR OF ALLOCATION VALUE GROWTH EXPIRATION FUND* FUND FUND ---------- --------------- ------------- ------------- 2007 $ 260,595 $ -- $ -- 2008 330,406 -- -- 2009 -- -- 41,527,758 2010 27,180,898 69,017,603 99,339,708 SMALL STRATEGIC YEAR OF INTERNATIONAL COMPANY EQUITY EXPIRATION EQUITY FUND* EQUITY FUND FUND ---------- ------------------ ------------ ------------- 2008 $ 4,901,661 $ -- $ -- 2009 104,830,434 7,869,522 -- 2010 219,682,429 93,115,978 2,149,527 * The availability of a portion of these capital loss carryforwards ($591,001 with respect to the Asset Allocation Fund and $4,901,661 with respect to the International Equity Fund), which were acquired on August 20, 2001 in connection with The Pillar Funds reorganization, may be limited in a given year. NOTE 4. INVESTMENT ADVISORY, ADMINISTRATION, SHAREHOLDER SERVICES, DISTRIBUTION AND OTHER FEES On April 1, 2003, Fleet Investment Advisors Inc., the previous advisor to the Funds, and Stein Roe & Farnham Incorporated, the previous administrator to the Funds, merged into Columbia Management Advisors, Inc. ("Columbia"). At the time of the merger, Columbia assumed the obligations of those companies with respect to the Funds. The merger did not change the way the Funds are managed, the investment personnel assigned to manage the Funds or the fees paid by the Funds to Columbia. Columbia, an indirect, wholly-owned subsidiary of Fleet-Boston Financial Corporation, is the investment advisor of the Funds and receives a monthly fee equal to 0.75% annually of the average daily net assets of each Fund (excluding the International Equity Fund). 136 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) Columbia intends to waive advisory fees payable to it by each Fund so that the advisory fees payable by each Fund would be as follows: AVERAGE DAILY NET ASSETS ANNUAL FEE RATIO ------------------------ ---------------- First $500 million 0.75% Next $500 million 0.70% Next $500 million 0.65% Next $500 million 0.60% Over $2 billion 0.55% The International Equity Fund pays Columbia an advisory fee, computed daily and paid monthly, at the annual rate of 0.89% (waived by 0.25% for one year from date of the acquisition of the Galaxy International Equity Fund by the Fund.) Columbia provides, pursuant to an Administrative Agreement with the Funds, certain administrative services for a monthly fee equal to 0.067% annually of each Fund's average daily net assets. Prior to November 26, 2002, the administration agreement was computed daily and paid monthly at the annual rate of 0.09% of the first $2.5 billion of the combined average daily net assets of the Funds and the other funds offered by Galaxy, 0.085% of the next $2.5 billion of combined average daily net assets, 0.075% of the next $7 billion of combined average daily net assets, 0.065% of the next $3 billion of combined average daily net assets, 0.06% of the next $3 billion of combined average daily net assets, 0.0575% of the next $3 billion of combined average daily net assets, 0.0525% of the next $9 billion of combined average daily net assets and 0.05% of combined average daily net assets in excess of $30 billion. Columbia is also responsible for providing pricing and bookkeeping services to the Funds under a Pricing and Bookkeeping Agreement. Under a separate agreement (the "Outsourcing Agreement"), Columbia has delegated those functions to State Street Bank and Trust Company ("State Street"). Columbia pays fees to State Street under the Out-sourcing Agreement. Under its pricing and bookkeeping agreement with the Funds, Columbia receives from each Fund an annual fee based on the average daily net assets of each Fund as follows: AVERAGE DAILY NET ASSETS FEE ------------------------ --- Under $50 million $ 25,000 Of $50 million but less than $200 million 35,000 Of $200 million but less than $500 million 50,000 Of $500 million but less than $1 billion 85,000 In excess of $1 billion 125,000 The annual fees for a Fund with more than 25% in non-domestic assets will be 150% of the annual fees described above. The Funds also pay out-of-pocket costs for pricing services. Liberty Funds Services, Inc. (the "Transfer Agent"), an affiliate of Columbia, provides shareholder services for a monthly fee based on a per account charge or minimum of $5,000 annually per Fund. The Transfer Agent also receives reimbursement for certain out-of-pocket expenses. The Transfer Agent has agreed to reimburse class specific transfer agent fees as follows: FEES WAIVED ----------- CLASS A CLASS G CLASS T CLASS Z ------- --------- -------- ------ International Equity Fund $ -- $ 5,240 $ 20,404 $ -- Large Cap Core Fund 8 8,593 -- -- Small Company Equity Fund -- -- 12,539 -- Strategic Equity Fund -- -- 4,349 4,566 Liberty Funds Distributor, Inc. (the "Distributor"), an affiliate of Columbia, is the Funds' principal underwriter. For the period ended April 30, 2003, the Funds have been advised that the Distributor has retained fees as follows:
FRONT-END SALES CHARGE CDSC --------------------- ------------------------------------------------------------------ CLASS A CLASS T CLASS A CLASS B CLASS C CLASS G CLASS T ------- --------- -------- -------- --------- ---------- -------- Asset Allocation Fund $ 6 $ 285 $ -- $ 161 $ -- $ 143,284 $ -- Equity Growth Fund 136 855 -- 23 -- 96,590 -- Equity Value Fund 67 244 -- -- -- 18,879 -- International Equity Fund 142 97 -- -- -- 7,379 -- Large Cap Core Fund 1,467 352 -- 68 -- 42,389 -- Small Cap Fund -- 1,498 -- 4,587 287 10,110 -- Small Company Equity Fund 151 157 -- 38 -- 7,039 -- Strategic Equity Fund 206 47 -- 2,320 -- -- 8,457
137 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) The Funds have adopted a 12b-1 plan (the "Plan"), which requires the payment of a monthly service and distribution fee to the Distributor at an annual fee rate as follows:
DISTRIBUTION FEE SERVICE FEE ------------------------------------------------- --------------------------------------------- CLASS A* CLASS B CLASS C CLASS G** CLASS A* CLASS B CLASS C CLASS G** ---------- ------- ------- ----------- ---------- ------- ------- ----------- Asset Allocation Fund 0.10% 0.75% 0.75% 0.65% 0.25% 0.25% 0.25% 0.50% Equity Growth Fund 0.10% 0.75% 0.75% 0.65% 0.25% 0.25% 0.25% 0.50% Equity Value Fund 0.10% 0.75% 0.75% 0.65% 0.25% 0.25% 0.25% 0.50% International Equity Fund 0.10% 0.75% 0.75% 0.65% 0.25% 0.25% 0.25% 0.50% Large Cap Core Fund 0.10% 0.75% 0.75% 0.65% 0.25% 0.25% 0.25% 0.50% Small Cap Fund 0.10% 0.75% 0.75% 0.65% 0.25% 0.25% 0.25% 0.50% Small Company Equity Fund 0.10% 0.75% 0.75% 0.65% 0.25% 0.25% 0.25% 0.50% Strategic Equity Fund 0.10% 0.75% 0.75% 0.65% 0.25% 0.25% 0.25% 0.50%
* Under the Plan, the Funds do not intend to pay more than a total of 0.25% annually for Class A shares. ** Under the Plan, the Funds do not intend to pay more than a total of 0.95% annually for Class G shares. The Funds have adopted plans that permit them to pay for certain services provided to Class T and Class Z shareholders by their financial advisor. Currently, the service plan has not been implemented with respect to the Fund's Class Z shares. The annual service fee may equal up to 0.50% for Class T shares. The Funds do not intend to pay more than 0.30% annually for Class T shareholder service fees. The CDSC and the fees received from the Plan are used principally as repayment to the Distributor for amounts paid by the Distributor to dealers who sold such shares. Each Fund pays no compensation to its officers, all of whom are employees of Columbia or its affiliates. The Funds' Independent Trustees may participate in a deferred compensation plan, which may be terminated at any time. Obligations of the plan will be paid solely out of the Funds' assets. The Funds have an agreement with their custodian bank under which custody fees are reduced by balance credits. The Funds could have invested a portion of the assets utilized in connection with the expense offset arrangement in an income-producing asset if they had not entered into such an agreement. The amounts of custody credits for the six months ended April 30, 2003 are as follows: CUSTODY CREDITS --------------- Asset Allocation Fund $ -- Equity Growth Fund -- Equity Value Fund 619 International Equity Fund -- Large Cap Core Fund -- Small Cap Fund. 1,294 Small Company Equity Fund. 267 Strategic Equity Fund. -- NOTE 5. SHARES OF BENEFICIAL INTEREST The Trust's Declaration of Funds authorizes the Trustees to issue an unlimited number of shares of beneficial interest, each with a par value of $0.001. NOTE 6. PURCHASES AND SALES OF SECURITIES The cost of purchases and proceeds from sales of securities, excluding short-term investments, for the six months ended April 30, 2003 were as follows: OTHER INVESTMENT SECURITIES ------------------------------------- PURCHASES SALES ---------------- ---------------- Asset Allocation Fund $ 701,345,806 $ 805,410,418 Equity Growth Fund 109,071,828 212,400,355 Equity Value Fund 77,069,730 64,473,121 International Equity Fund 126,651,258 194,506,230 Large Cap Core Fund 116,816,805 251,363,484 Small Cap Fund 108,627,753 55,520,165 Small Company Equity Fund 176,640,720 163,462,989 Strategic Equity Fund 32,454,567 55,649,601 U.S. GOVERNMENT SECURITIES ------------------------------------- PURCHASES SALES --------------- ---------------- Asset Allocation Fund $ 2,348,619 $ 2,825,564 Unrealized appreciation (depreciation) at April 30, 2003, based on cost of investments for federal income tax purposes, was: NET GROSS GROSS UNREALIZED UNREALIZED UNREALIZED APPRECIATION APPRECIATION DEPRECIATION (DEPRECIATION) -------------- -------------- ------------- Asset Allocation Fund $ 32,267,791 $ (28,106,239) $ 4,161,552 Equity Growth Fund 163,223,891 (141,976,192) 21,247,699 Equity Value Fund 31,646,972 (23,135,389) 8,511,583 International Equity Fund 19,913,470 (28,712,281) (8,798,811) Large Cap Core Fund 53,663,788 (81,279,248) (27,615,460) Small Cap Fund 88,332,644 (144,121,115) (55,788,471) Small Company Equity Fund 40,498,521 (27,785,722) 12,712,799 Strategic Equity Fund 10,173,340 (38,862,791) (28,689,451) 138 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) NOTE 7. FOREIGN SECURITIES Each Fund may purchase securities of foreign issuers. Investing in securities of foreign issuers involves special risks not typically associated with investing in securities of U.S. issuers. The risks include possible revaluation of currencies, less complete financial information about companies and possible future adverse political and economic developments. Moreover, securities of many foreign issuers and their markets may be less liquid and their prices more volatile than those of securities of comparable U.S. issuers. NOTE 8. LINE OF CREDIT Prior to each Fund's merger into the Trust, the Funds and other Galaxy funds participated in a $150,000,000 credit facility, which was used for temporary or emergency purposes to facilitate portfolio liquidity. Interest was charged to a Fund based on its borrowings. In addition, each Fund paid commitment fees on its pro-rata portion of the line of credit. The commitment fees are included in "Other expenses" on the Statements of Operations. Following the merger into the Trust, the Funds participated in a $200,000,000 credit facility with other Liberty Funds. On April 26, 2003, the Funds entered into a new $350,000,000 credit facility with other Liberty Funds, pursuant to similar terms and conditions. For the six months ended April 30, 2003, the Funds did not borrow under these agreements. 139 This page left blank intentionally. TRANSFER AGENT IMPORTANT INFORMATION ABOUT THIS REPORT The Transfer Agent for Liberty Equity Funds is: Liberty Funds Services, Inc. P.O. Box 8081 Boston, MA 02266-8081 The fund mails one shareholder report to each shareholder address. If you would like more than one report, please call shareholder services at 800-345-6611 and additional reports will be sent to you. This report has been prepared for shareholders of Liberty Equity Funds. This report may also be used as sales literature when preceded or accompanied by the current prospectus which provides details of sales charges, investment objectives and operating policies of the fund and with the most recent copy of the Liberty Funds Performance Update. Semiannual Report: Liberty Equity Funds LIBERTY EQUITY FUNDS SEMIANNUAL REPORT APRIL 30, 2003 [Eagle head logo] A MEMBER OF COLUMBIA MANAGEMENT FROUP (C)2003 LIBERTY FUNDS DISTRIBUTOR, INC. A MEMBER OF COLUMBIA MANAGEMENT FROUP ONE FINANCIAL CENTRE, BOSTON, MA 02111-2621 PRSRT STD U.S. Postage PAID Holliston, MA Permit NO. 20 G-03/978N-0503 (06/03) 03/1596 ITEM 2. CODE OF ETHICS. Not applicable at this time. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Not applicable at this time. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not applicable at this time. ITEMS 5-6. [RESERVED] ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES Not applicable at this time. ITEM 8. [RESERVED] ITEM 9. CONTROLS AND PROCEDURES. (a) The Registrant's Chief Executive Officer and Chief Financial Officer, based on their evaluation of the Registrant's disclosure controls and procedures as of June 20, 2003, have concluded that such controls and procedures are adequately designed to ensure that information required to be disclosed by the Registrant in its reports that it files or submits under the Securities Exchange Act of 1934, as amended, is accumulated and communicated to the Registrant's management, including the Chief Executive Officer and Chief Financial Officer, or persons performing similar functions, as appropriate, to allow timely decisions regarding required disclosure. (b) There were no significant changes in the registrant's internal controls or in other factors that could affect these controls subsequent to the date of our evaluation. ITEM 10. EXHIBITS. File the exhibits listed below as part of this Form. Letter or number the exhibits in the sequence indicated. (a) Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit: Not applicable at this time. (b) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2 under the Act (17 CFR 270.30a-2) in the exact form set forth below: Attached hereto. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (Registrant) Liberty-Stein Roe Funds Investment Trust ----------------------------------------------------------- By (Signature and Title)* /s/ Joseph R. Palombo ---------------------------------------------- Joseph R. Palombo, President Date June 24, 2003 ------------------------------------------------------------------- Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By (Signature and Title)* /s/ Joseph R. Palombo ---------------------------------------------- Joseph R. Palombo, President Date June 24, 2003 ------------------------------------------------------------------- By (Signature and Title)* /s/ J. Kevin Connaughton ---------------------------------------------- J. Kevin Connaughton, Treasurer Date June 24, 2003 ------------------------------------------------------------------- * Print the name and title of each signing officer under his or her signature.