-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, FccGxKvCbhNx8JEGmWqnTiifMZHYO6trhLXdXrDIBqm3O8PT1wvREHm1+ZWVT3Rh 3IshKLVhMdbf235vZf9tMQ== 0000891804-04-000798.txt : 20040409 0000891804-04-000798.hdr.sgml : 20040409 20040408181117 ACCESSION NUMBER: 0000891804-04-000798 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20040131 FILED AS OF DATE: 20040409 EFFECTIVENESS DATE: 20040409 FILER: COMPANY DATA: COMPANY CONFORMED NAME: COLUMBIA FUNDS TRUST VI CENTRAL INDEX KEY: 0000883163 IRS NUMBER: 046700215 STATE OF INCORPORATION: MA FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: N-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-06529 FILM NUMBER: 04725773 BUSINESS ADDRESS: STREET 1: ONE FINANCIAL CENTER CITY: BOSTON STATE: MA ZIP: 02111 BUSINESS PHONE: 6174263750 FORMER COMPANY: FORMER CONFORMED NAME: LIBERTY FUNDS TRUST VI DATE OF NAME CHANGE: 19990524 FORMER COMPANY: FORMER CONFORMED NAME: COLONIAL TRUST VI DATE OF NAME CHANGE: 19920826 N-CSRS 1 file001.txt COLUMBIA FUNDS TRUST VI 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 811-6529 --------------------- Columbia Funds Trust VI ------------------------------------------------------------------------------ (Exact name of registrant as specified in charter) One Financial Center, Boston, Massachusetts 02111 - ------------------------------------------------------------------------------ (Address of principal executive offices) (Zip code) Vincent Pietropaolo, 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: 1-617-772-3698 ------------------- Date of fiscal year end: July 31, 2004 ------------------ Date of reporting period: January 31, 2004 ----------------- 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. COLUMBIA GROWTH & INCOME FUND Semiannual Report January 31, 2004 Photo of: Man and woman smiling. Logo: Columbia Funds A Member of Columbia Management Group Table of Contents Fund Profile .................................. 1 Performance Information ....................... 2 Economic Update ............................... 3 Portfolio Managers' Report .................... 4 Financial Statements .......................... 6 Investment Portfolio ....................... 7 Statement of Assets and Liabilities ........ 11 Statement of Operations .................... 12 Statements of Changes in Net Assets ........ 13 Notes to Financial Statements .............. 15 Financial Highlights ...................... 20 Important Information About This Report ............................ 24 Economic and market conditions change frequently. There is no assurance that the trends described in this report will continue or commence. - -------------------------------- Not FDIC Insured May Lose Value No Bank Guarantee - -------------------------------- TO OUR FELLOW SHAREHOLDERS - -------------------------------------------------------------------------------- Columbia Growth & Income Fund Before introducing your Semiannual Report, we want to address recent press reports about allegations of market timing in certain Columbia funds. The trustees of the funds and the people of Columbia Management are deeply concerned about these events. Columbia Management has assured investors that full compensation will be paid for monetary damages, and all of us have been working to implement procedures to minimize the possibility of a recurrence. We are committed to serving the interests of our shareholders and to help you achieve your financial goals. In the pages that follow, you'll find valuable information about the economic environment and the performance of Columbia Growth & Income Fund during the six-month period ended January 31, 2004. The "Economic Update" provides an overview of the investing environment during the period covered by this report. In the "Portfolio Managers' Report," your fund's management team discusses investment performance and the impact of decisions made during the period. We hope that you will take time to read the report and discuss it with your financial advisor. As always, thank you for choosing Columbia funds. It is a privilege to play a role in your financial future, and we value your business. If you have any questions about your account, please feel free to call Columbia's shareholder service department at 800-345-6611. Sincerely, /s/ Thomas C. Theobald /s/ J. Kevin Connaughton Thomas C. Theobald J. Kevin Connaughton Chairman, Board of Trustees President, Columbia Funds Thomas C. Theobald was elected independent chairman of the Board of Trustees of Columbia funds in December 2003. Mr. Theobald has served on the board of many Columbia funds for more than seven years. J. Kevin Connaughton was named president of Columbia Funds on February 27, 2004. Summary o For the six-month period ended January 31, 2004, the fund's class A shares returned 13.00% without sales charge. o The fund underperformed its new benchmark, the Russell 1000 Value Index, as well as its previous benchmark, the S&P 500 Index, and its peer group, the Morningstar Large Value Category. o The fund provided a strong absolute return for the period, but its performance fell short of its benchmark and peer group because the fund emphasized high-quality stocks while lower-quality speculative stocks were the market's strongest performers. Objective Seeks long-term growth and income Total net assets $2.015 billion Class A shares 13.00% Russell 1000 Value Index 16.86% Morningstar style box Graphic: Morningstar style box Style: Value Size: Large FUND PROFILE - -------------------------------------------------------------------------------- Columbia Growth & Income Fund The information below gives you a snapshot of your fund at the end of the reporting period. Because your fund is actively managed, there is no guarantee that these breakdowns and percentages will be maintained in the future. Top 5 sectors as of 01/31/04 (%) Financials 32.8 Energy 12.7 Industrials 10.3 Consumer staples 7.9 Consumer discretionary 7.9 Top 10 holdings as of 01/31/04 (%) Citigroup 5.4 iShares Russell 1000 2.9 Exxon Mobil 2.8 Bank of America 2.4 Halliburton 2.2 American International Group 2.1 ConocoPhillips 2.1 Aetna 2.1 U.S. Bancorp 2.1 Waste Management 2.1 Sector breakdown and portfolio holdings are calculated as a percentage of net assets. (C)2004 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. The Morningstar Style BoxTM reveals a fund's investment strategy. For equity funds the vertical axis shows the market capitalization of the stocks owned and the horizontal axis shows investment style (value, blend or growth). For fixed-income funds the vertical axis shows the average credit quality of the bonds owned, and the horizontal axis shows interest rate sensitivity as measured by a bond's duration (short, intermediate or long). All of these numbers are drawn from the data most recently provided by the fund and entered into Morningstar's database as of month-end. Although the data are gathered from reliable sources, Morningstar cannot guarantee completeness and accuracy. As of 01/31/04. 1 Performance of a $10,000 investment 02/01/94 - 01/31/04 ($) sales charge: without with Class A 29,931 28,210 Class B 27,761 27,761 Class C 27,767 27,767 Class Z 30,206 n/a Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares may be worth more or less than original cost. Please visit www.columbiafunds.com for daily and most recent month-end performance updates. PERFORMANCE INFORMATION - -------------------------------------------------------------------------------- Columbia Growth & Income Fund Value of a $10,000 investment 02/01/94 - 01/31/04 Line Chart:
Class A shares Class A shares Russell 1000 without sales charge with sales charge Value Index S&P 500 Index 02/1994 10000 9425 10000 10000 9766 9204.46 9659 9728 9410.52 8869.41 9298.72 9303.86 9426.52 8884.49 9477.25 9422.95 9539.63 8991.1 9587.19 9577.48 9315.45 8779.81 9357.1 9342.84 9510.15 8963.31 9648.1 9649.28 9932.4 9361.28 9925.97 10044.9 9810.23 9246.14 9597.42 9798.8 9940.7 9369.11 9730.82 10019.3 9615.64 9062.74 9338.67 9654.57 9764.68 9203.22 9447 9797.46 10008.8 9433.3 9737.97 10051.2 10479.2 9876.66 10123.6 10443.2 10731.8 10114.7 10346.3 10751.3 10966.8 10336.2 10673.3 11067.4 11419.7 10763.1 11121.5 11510.1 11629.8 10961.1 11271.7 11777.1 12006.6 11316.3 11663.9 12168.1 11937 11250.6 11828.4 12198.5 12348.8 11638.8 12256.6 12713.3 12269.8 11564.3 12135.2 12667.5 12717.6 11986.4 12749.3 13223.6 12645.2 11918.1 13069.3 13478.9 12987.9 12241 13477 13937.1 13197 12438.1 13579.5 14066.8 13206.2 12446.8 13810.3 14201.8 13690.9 12903.6 13862.8 14410.6 14033.1 13226.2 14036.1 14782.4 13821.2 13026.5 14047.3 14838.5 13076.3 12324.4 13516.3 14182.7 13486.9 12711.4 13902.9 14481.9 14078.9 13269.4 14456.2 15297.2 14442.2 13611.7 15015.7 15719.5 15502.2 14610.8 16104.3 16907.8 15133.3 14263.1 15898.2 16573.1 16171.4 15241.5 16669.2 17608.9 16202.1 15270.5 16914.3 17746.2 15630.2 14731.5 16305.4 17016.9 16575.8 15622.7 16990.2 18032.8 17562.1 16552.3 17940 19131 18261.1 17211 18709.6 19988 19926.5 18780.7 20116.5 21579.1 19177.2 18074.5 19400.4 20370.7 20249.2 19084.9 20572.2 21487 19281.3 18172.7 19998.2 20769.3 20010.2 18859.6 20882.1 21730.9 20456.4 19280.2 21491.9 22104.7 20667.1 19478.7 21186.7 22350 22169.6 20894.8 22612.6 23961.5 23260.3 21922.9 23996.5 25188.3 23248.7 21911.9 24157.2 25442.7 22651.2 21348.8 23799.7 25005.1 23496.1 22145.1 24104.3 26020.3 23073.2 21746.5 23680.1 25744.5 19342.2 18230.1 20156.5 22021.8 20199.1 19037.7 21313.5 23433.4 21865.5 20608.3 22965.3 25338.6 23214.6 21879.8 24035.5 26874.1 24558.8 23146.6 24852.7 28422 25209.6 23760 25051.5 29610.1 24155.8 22766.8 24698.3 28689.2 24952.9 23518.2 25209.5 29836.8 25639.2 24164.9 27564.1 30991.5 25282.8 23829 27260.9 30260.1 26779.5 25239.7 28051.4 31939.5 26080.6 24580.9 27229.5 30943 25785.8 24303.2 26219.3 30791.4 24806 23379.6 25304.3 29947.7 25847.8 24361.6 26761.8 31843.4 26129.6 24627.1 26553.1 32489.8 27360.3 25787.1 26680.5 34403.4 25896.5 24407.5 25810.7 32676.4 24894.3 23462.9 23893 32058.8 27689.9 26097.8 26807.9 35194.2 27689.9 26097.8 26497 34134.8 27504.4 25922.9 26775.2 33435.1 27160.6 25598.9 25551.6 34260.9 27331.7 25760.2 25870.9 33726.4 28345.7 26715.8 27309.4 35820.8 28623.5 26977.7 27560.6 33929.5 30086.2 28356.2 28238.6 33787 30257.7 28517.9 27191 31124.6 31803.8 29975.1 28553.2 31277.1 31689.3 29867.2 28661.7 32387.4 31382 29577.5 27864.9 29433.7 30358.9 28613.3 26881.3 27567.6 30960 29179.8 28198.5 29709.6 31526.6 29713.8 28832.9 29908.7 30779.4 29009.6 28192.9 29181.9 31607.4 29790 28133.7 28895.9 31379.8 29575.5 27005.5 27087 30278.4 28537.4 25104.3 24898.4 30229.9 28491.7 24888.4 25373.9 31414.9 29608.6 26334.4 27320.1 31631.7 29812.9 26955.9 27560.5 31119.3 29329.9 26748.4 27158.2 30730.3 28963.3 26791.2 26634 32300.6 30443.3 28058.4 27635.4 31015 29231.7 27096 25960.7 30996.4 29214.1 27231.5 25768.6 27630.2 26041.5 25668.4 23933.9 25461.2 23997.2 23281.2 22069.4 25672.6 24196.4 23458.1 22212.9 22093.8 20823.4 20849.6 19798.3 24033.6 22651.7 22394.6 21540.6 25850.6 24364.2 23805.4 22809.3 24754.5 23331.1 22772.3 21470.4 23870.8 22498.2 22221.2 20907.9 22519.7 21224.8 21627.9 20594.3 22429.6 21139.9 21664.6 20794.1 24015.4 22634.5 23571.1 22507.5 25979.9 24486 25093.8 23693.6 26593 25063.9 25407.5 23996.9 26484 24961.1 25786.1 24419.3 26915.6 25368 26188.3 24895.4 26409.6 24891.1 25931.7 24631.5 27328.7 25757.3 27518.7 26025.7 27599.2 26012.3 27892.9 26254.7 29489.8 27794.1 29611.2 27630.5 01/2004 29931 28210 30129 28131
On October 13, 2003, the fund's primary benchmark was changed to the Russell 1000 Value Index. Prior to that date, the fund's benchmark was the Standard & Poor's (S&P) 500 Index. All results shown assume reinvestment of distributions. The graph and table do not reflect the deduction of taxes a shareholder would pay on fund distributions or the redemption of fund shares. The Russell 1000 Value Index measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values. The S&P 500 Index is an unmanaged index that tracks the performance of 500 widely held, large capitalization US stocks. Unlike mutual funds, 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.
Average annual total return as of 01/31/04 (%) Share class A B C Z Inception 07/01/92 07/01/92 07/01/94 02/07/01 Sales charge without with without with without with without 6-month (cumulative) 13.00 6.51 12.56 7.56 12.54 11.54 13.12 1-year 25.38 18.17 24.48 19.48 24.47 23.47 25.77 5-year 3.49 2.27 2.72 2.44 2.71 2.71 3.68 10-year 11.59 10.93 10.75 11.75 10.75 10.75 11.69 Average annual total return as of 12/31/03 (%) Share class A B C Z Sales charge without with without with without with without 6-month (cumulative) 10.90 4.52 10.55 5.55 10.55 9.55 11.09 1-year 19.14 12.29 18.33 13.33 18.36 17.36 19.51 5-year 3.73 2.51 2.95 2.67 2.96 2.96 3.92 10-year 11.65 10.99 10.83 10.83 10.83 10.83 11.75
All results shown assume reinvestment of distributions. The "with sales charge" returns include the maximum 5.75% sales charge for class A shares, the appropriate class B contingent deferred sales charge for the holding period after purchase as follows: first year - 5%, second year - 4%, third year - 3%, fourth year - 3%, fifth year - 2%, sixth year - 1%, thereafter - 0% and the class C contingent deferred sales charge of 1% for the first year only. Performance for different share classes 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 C and Z share (newer class shares) performance information includes returns of the fund's class B and A shares (older class shares), respectively, as their expense structures more closely resemble those for the newer class shares for periods prior to the inception date of the newer class shares. Total returns are not restated to reflect any expense differential (e.g., Rule 12b-1 fees) between the older class shares and the newer class shares. Had the expense differential been reflected, the returns for the periods prior to the inception of newer class shares would have been different. 2 Summary For the six-month period that ended January 31, 2004 o The US stock market benefited from investor enthusiasm and an increase in corporate profits. Both the Russell 3000 Index, which tracks approximately 98% of the US stock market, and the S&P 500 Index posted double-digit returns this period. Russell 3000 Index 16.05% S&P 500 Index 15.23% o Performance in the fixed-income universe was led by high-yield bonds. As measured by the Merrill Lynch US High Yield, Cash Pay Index, this sector posted a return approximately seven percentage points higher than the return for investment-grade bonds, as measured by the Lehman Brothers Aggregate Bond Index. Merrill Lynch Index 11.80% Lehman Index 4.49% The S&P 500 Index is an unmanaged index that tracks the performance of 500 widely held, large capitalization US stocks. The Russell 3000 Index is an unmanaged index that tracks the performance of the 3,000 largest US companies based on total market capitalizations. The Merrill Lynch US High Yield, Cash Pay Index is an unmanaged index that tracks the performance of non-investment-grade corporate bonds. The Lehman Brothers Aggregate Bond Index is a market value-weighted index that tracks fixed-rate, publicly placed, dollar-denominated, and non-convertible investment grade debt issues. ECONOMIC UPDATE - -------------------------------------------------------------------------------- Columbia Growth & Income Fund After struggling for two years to maintain solid, forward movement, the US economy steamed ahead during the six-month period ended January 31, 2004. The economy grew at an annualized pace of 8.2% in the third quarter of 2003. Although that pace slowed to an estimated 4.0% in the fourth quarter, there was widespread agreement that the efforts of the Federal Reserve Board to stimulate the economy through low short-term interest rates had finally been rewarded. In fact, the significant upswing in growth over the past six months was the result of a combination of factors. A sizeable tax package gave disposable income a boost. Income taxes fell across all tax brackets. And, many taxpayers received tax rebate checks late last summer, which helped keep consumer spending high throughout the period. The business sector also made a contribution to the economy's growth. Industrial production rose over the past six months, and business spending--especially on technology-related items--showed strength. Corporate profits rose sharply, and orders for durable goods exceeded expectations. Even the labor market improved during the period. After unemployment peaked at 6.4% in June 2003, it declined to 5.6% in January. The US stock market continued to head higher, expanding on a rally that began in the spring of 2003. The S&P 500 Index returned 15.23% for the six-month period as all major sectors of the market benefited from renewed investor enthusiasm and rising corporate profits. Technology was the strongest sector early in the period, but more defensive issues, such as utilities and health care, picked up as investors appeared to hedge their bets on the economy. As the economy gained strength early in the period, interest rates shot up and unsettled the bond market. However, the yield on the benchmark 10-year US Treasury bond peaked early in September, and most bond sectors eked out modest gains for the period as interest rates edged lower. The Lehman Brothers Aggregate Bond Index, a broad measure of investment-grade bond performance, returned 4.49%. High-yield bonds continued to lead the fixed-income markets. The Merrill Lynch US High Yield, Cash Pay Index returned 11.80%. Money market fund yields remained below 1%, reflecting historically low short-term interest rates. The Investment Company Institute, which tracks assets in and out of mutual funds, reported that money continued to flow out of taxable money market funds during 2003 as investors sought alternatives to the low yields offered by short-term cash equivalents. Net new cash flow to money market funds turned negative in 2002 and remained negative through most of 2003. 3 Net asset value per share as of 01/31/04 ($) Class A 16.45 Class B 15.48 Class C 15.59 Class Z 16.45 Distributions declared per share as of 08/01/03 - 01/31/04 ($) Class A 0.14 Class B 0.03 Class C 0.03 Class Z 0.18 Portfolio holdings discussed in this report (%) Textron 1.8 ConocoPhillips 2.1 Exxon Mobil 2.8 Citigroup 5.4 Nokia 1.3 Holdings are calculated as a percentage of net assets as of January 31, 2004, and are subject to change. PORTFOLIO MANAGERS' REPORT - -------------------------------------------------------------------------------- Columbia Growth & Income Fund For the six-month period ended January 31, 2004, Columbia Growth & Income Fund class A shares returned 13.00% without sales charge. This was less than the fund's new benchmark, the Russell 1000 Value Index, which returned 16.86% over the same period. The new benchmark was selected because we believe it more accurately reflects the performance of value stocks, which the fund emphasizes. In addition, the fund also gained less ground than both its previous benchmark and its peer group. The S&P 500 Index posted a 15.23% return for the period. The average return of the Morningstar Large Value Category was 16.09%.1 FOCUS ON HIGH-QUALITY VALUE STOCKS AND PORTFOLIO CHANGES The fund's double-digit return reflected solid gains from industrial and energy companies. However, our emphasis on companies with more dependable earnings hurt the fund's relative performance in a rapidly-rising market that favored the most speculative stocks. During this reporting period we continued to restructure the portfolio. We re-evaluated the portfolio's sector weightings. We reduced some sectors, which we felt were overweight relative to the benchmark, while maintaining our focus on stock selection. However, the process was not completed until late in the period, and the fund did not have the full benefit of the improved diversification that resulted from the process. We have focused the fund on higher-quality value stocks which offer a downside cushion as well as upside opportunity. INDUSTRIAL AND ENERGY STOCKS RESPOND TO AN IMPROVING ECONOMY The period began amid lingering concerns about the durability and breadth of the economic recovery. But by late summer, positive economic news became the rule rather than the exception. Capital spending picked up. Both inflation and interest rates remained low, creating an accommodating environment for stocks. In this environment, some of the fund's best performers were industrial and energy companies. In the industrial sector, diversified manufacturer Textron benefited from the economic rebound and performed well. Although the energy sector was not one of the market's strongest performers, several of the fund's top performers were energy-related companies, including ConocoPhillips and Exxon Mobil. Oil and gas prices rose above the market's expectations during the period, as US production of natural gas declined and Iraqi oil output stayed low. Rapidly growing demand for oil in China also helped drive the price of crude oil higher, which contributed to higher returns in the energy sector. SOLID RETURNS FROM FINANCIAL AND TECHNOLOGY STOCKS Financial services and technology stocks were strong performers during the period, and the fund participated in these gains. In financial services, the fund's largest holding-Citigroup-was also its top contributor to performance. The stock posted a 12.0% return for the six-month period. Within technology, the fund's investment in Nokia, the world's number one cell phone manufacturer, also made a strong contribution to 1 2004 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. 4 In an economic environment that shows signs of being able to sustain a reasonable pace of growth, we believe that value stocks have the potential to continue to do well. - -------------------------------------------------------------------------------- Columbia Growth & Income Fund performance. However, those gains were partially offset by a loss from our investment in contract manufacturer, Celestica. The company's earnings fell short of expectations as management was unable to improve margins at its European operation. Realizing that improvement may take much longer than we were led to believe, we sold the stock. POSITIONED FOR A RECOVERING ECONOMY In an economic environment that shows signs of being able to sustain a reasonable pace of growth, we believe that value stocks have the potential to continue to do well. Personal income has risen, capital expenditures have finally kicked in and some tangible signs of job growth appeared in the final months of the reporting period. We are encouraged that inflation remains low, which has helped keep interest rates at or near historical lows. We remain focused on high-quality stocks with the potential to prosper under a variety of economic conditions. We began the period confident in our team and confident in the changes we have made to enhance our investment process. We remain committed to investing for the long term and will implement our process in a deliberate, disciplined manner. Photo of: Brian Cunningham Brian Cunningham has co-managed Columbia Growth & Income Fund since November 2003 and has been with the advisor and its predecessors since 1987. /s/ Brian Cunningham Photo of: Greg Miller Greg Miller has co-managed the fund since April 2003 and has been with the advisor and its predecessors since 1985. /s/ Greg Miller Photo of: Richard Dahlberg Richard Dahlberg, CFA, has co-managed the fund since October 2003 and has been with the advisor since 2003. /s/ Richard Dahlberg An investment in the fund offers significant long-term growth potential, but also involves certain risks. The fund may be affected by stock market fluctuations that occur in response to economic and business developments. Changes in interest rates, changes in financial strength of issuers of lower-rated bonds and foreign, political and economic developments also may affect the fund's performance. Value stocks are securities of companies that may have experienced adverse business or industry developments or may be subject to special risks that have caused the stocks to be out of favor. If the advisor's assessment of a company's prospects is wrong, the price of its stock may not approach the value the advisor has placed on it. 5 FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- January 31, 2004 Columbia Growth & Income Fund A GUIDE TO UNDERSTANDING YOUR FUND'S FINANCIAL STATEMENTS ----------------------------------------------------- Investment Portfolio The investment portfolio details all of the fund's holdings and their market value as of the last day of the reporting period. Portfolio holdings are organized by type of asset, industry, country or geographic region (if applicable) to demonstrate areas of concentration and diversification. ----------------------------------------------------- Statement of Assets This statement details the fund's assets, and Liabilities liabilities, net assets and share price for each share class. Net assets are calculated by subtracting all the fund's liabilities (including any unpaid expenses) from the total of the fund's investment and non-investment assets. The share price for each class is calculated by dividing net assets for that class by the number of shares outstanding in that class as of the last day of the reporting period. ----------------------------------------------------- Statement of Operations This statement details income earned by the fund and the expenses charged to the fund. The Statement of Operations also shows any net gain or loss the fund realized on the sales of its holdings during the period, as well as any unrealized gains or losses recognized over the period. The total of these results represents the fund's net increase or decrease in net assets from operations. ----------------------------------------------------- Statement of Changes This statement demonstrates how the fund's net assets in Net Assets were affected by its operating results, distributions to shareholders and shareholder transactions (e.g., subscriptions, redemptions and dividend reinvestments). The Statement of Changes in Net Assets also reconciles changes in the number of shares outstanding. ----------------------------------------------------- Financial Highlights The financial highlights demonstrate how the fund's net asset value per share was affected by the fund's operating results. The financial highlights table also discloses certain key fund ratios (e.g., fund expenses and net investment income as a percentage of average net assets). ----------------------------------------------------- Notes to These notes disclose the organizational background of Financial Statements the fund, its significant accounting policies (including those surrounding security valuation, income recognition and distributions to shareholders), federal tax information, fees and compensation paid to affiliates and significant risk and contingencies. 6 INVESTMENT PORTFOLIO - -------------------------------------------------------------------------------- Columbia Growth & Income Fund January 31, 2004 (unaudited) Common Stocks - 96.7%
CONSUMER DISCRETIONARY - 7.9% Shares Value ($) - ------------------------------------------ ----------------------------------------------------------------------------- Auto Components - 1.0% Delphi Corp. 1,921,482 20,329,279 Auto Components Total 20,329,279 ----------------------------------------------------------------------------- Hotels, Restaurants & Leisure - 1.8% Harrah's Entertainment, Inc. 98,386 5,214,458 Wendy's International, Inc. 776,300 30,842,399 Hotel, Restaurants & Leisure Total 36,056,857 Leisure Equipment & Products - 0.4% Mattel, Inc. 473,800 8,959,558 Leisure Equipment & Products Total 8,959,558 ----------------------------------------------------------------------------- Media - 3.7% Clear Channel Communications, Inc. 221,006 9,943,060 Gannett Co., Inc. 114,000 9,770,940 McGraw-Hill Companies., Inc. 301,900 22,648,538 Time Warner, Inc. (a) 1,281,700 22,519,469 Viacom, Inc., Class A 223,600 9,071,452 Media Total 73,953,459 ----------------------------------------------------------------------------- Specialty Retail - 1.0% Office Depot, Inc. (a) 1,224,700 19,533,965 Specialty Retail Total 19,533,965 ----------- CONSUMER DISCRETIONARY TOTAL 158,833,118 CONSUMER STAPLES - 7.9% - ------------------------------------------ ----------------------------------------------------------------------------- Beverages - 1.5% PepsiCo, Inc. 649,400 30,690,644 Beverages Total 30,690,644 ----------------------------------------------------------------------------- Food Products - 2.0% ConAgra Foods, Inc. 808,700 20,977,678 Kraft Foods, Inc., Class A 621,200 20,008,852 Food Products Total 40,986,530 ----------------------------------------------------------------------------- Household Products - 3.4% Clorox Co. 420,000 20,529,600 Kimberly-Clark Corp. 379,500 22,413,270 Procter & Gamble Co. 242,500 24,511,900 Household Products Total 67,454,770 ----------------------------------------------------------------------------- Tobacco - 1.0% Altria Group, Inc. 366,488 20,373,068 Tobacco Total 20,373,068 ----------- CONSUMER STAPLES TOTAL 159,505,012 ENERGY - 12.7% - ------------------------------------------ ----------------------------------------------------------------------------- Energy Equipment & Services - 3.4% Baker Hughes, Inc. 669,200 23,475,536 Halliburton Co. 1,474,700 44,462,205 Energy Equipment & Services Total 67,937,741 ----------------------------------------------------------------------------- Oil & Gas - 9.3% BP PLC, ADR 848,810 40,403,356 ConocoPhillips 641,568 42,266,500 Exxon Mobil Corp. 1,378,630 56,234,318 Marathon Oil Corp. 948,800 30,817,024 Royal Dutch Petroleum Co., N.Y. Shares 403,300 19,116,420 Oil & Gas Total 188,837,618 ----------- ENERGY TOTAL 256,775,359 See notes to investment portfolio. 7 - -------------------------------------------------------------------------------- January 31, 2004 (unaudited) Columbia Growth & Income Fund Common Stocks - (continued) FINANCIALS - 32.8% Shares Value ($) - ------------------------------------------ ----------------------------------------------------------------------------- Banks - 10.4% Bank of America Corp. 600,829 48,943,530 Bank of New York Co., Inc. 873,000 27,717,750 Bank One Corp. 628,961 31,831,716 Fifth Third Bancorp 190,500 11,008,995 National City Corp. 272,163 9,395,067 U.S. Bancorp 1,475,000 41,698,250 Wells Fargo & Co. 689,500 39,584,195 Banks Total 210,179,503 ----------------------------------------------------------------------------- Diversified Financials - 12.9% American Express Co. 396,200 20,539,008 Citigroup, Inc. 2,199,900 108,851,052 Countrywide Financial Corp. 177,733 14,849,592 Freddie Mac 341,849 21,338,215 Goldman Sachs Group, Inc. 103,435 10,296,954 J.P. Morgan Chase & Co. 769,101 29,910,338 Merrill Lynch & Co., Inc. 342,067 20,110,119 Morgan Stanley 345,916 20,135,770 State Street Corp. 269,600 14,517,960 Diversified Financials Total 260,549,008 ----------------------------------------------------------------------------- Insurance - 8.0% AFLAC, Inc. 270,600 9,979,728 Ambac Financial Group, Inc. 268,800 20,098,176 American International Group, Inc. 612,800 42,558,960 Berkshire Hathaway, Inc., Class A (a) 349 31,232,010 Lincoln National Corp. 366,178 16,166,759 Travelers Property Casualty Corp., Class B 1,176,300 21,291,030 Willis Group Holdings Ltd. 546,308 20,213,396 Insurance Total 161,540,059 ----------------------------------------------------------------------------- Real Estate - 1.5% Archstone-Smith Trust, REIT 325,400 8,925,722 Kimco Realty Corp., REIT 220,749 10,183,151 Vornado Realty Trust, REIT 179,160 10,024,002 Real Estate Total 29,132,875 ----------- FINANCIALS TOTAL 661,401,445 HEALTH CARE - 5.2% - ------------------------------------------ ----------------------------------------------------------------------------- Health Care Providers & Services - 2.6% Aetna, Inc. 596,600 41,762,000 McKesson Corp. 331,061 9,726,572 Health Care Providers & Services Total 51,488,572 Pharmaceuticals - 2.6% Bristol-Myers Squibb Co. 337,095 9,455,515 Johnson & Johnson 178,700 9,546,154 Merck & Co., Inc. 213,838 10,178,689 Pfizer, Inc. 649,120 23,777,266 Pharmaceuticals Total 52,957,624 ----------- HEALTH CARE TOTAL 104,446,196 INDUSTRIALS - 10.3% - ------------------------------------------ ----------------------------------------------------------------------------- Aerospace & Defense - 3.9% General Dynamics Corp. 230,000 21,028,900 Honeywell International, Inc. 672,200 24,279,864 Raytheon Co. 714,400 21,796,344 United Technologies Corp. 112,400 10,738,696 Aerospace & Defense Total 77,843,804 ----------------------------------------------------------------------------- See notes to investment portfolio. 8 - -------------------------------------------------------------------------------- January 31, 2004 (unaudited) Columbia Growth & Income Fund Common Stocks - (continued) INDUSTRIALS - (continued) Shares Value ($) - ------------------------------------------ ----------------------------------------------------------------------------- Commercial Services & Supplies - 2.6% Avery Dennison Corp. 177,200 11,014,752 Waste Management, Inc. 1,488,710 41,326,590 Commercial Services & Supplies Total 52,341,342 ----------------------------------------------------------------------------- Industrial Conglomerates - 1.8% Textron, Inc. 668,100 35,596,368 Industrial Conglomerates Total 35,596,368 ----------------------------------------------------------------------------- Machinery - 2.0% Deere & Co. 311,210 19,481,746 Dover Corp. 533,100 22,027,692 Machinery Total 41,509,438 ----------- INDUSTRIALS TOTAL 207,290,952 INFORMATION TECHNOLOGY - 6.8% - ------------------------------------------ ----------------------------------------------------------------------------- Communications Equipment - 1.4% Nokia Oyj, ADR 1,305,400 26,969,564 Communications Equipment Total 26,969,564 ----------------------------------------------------------------------------- Computers & Peripherals - 2.0% Hewlett-Packard Co. 795,754 18,930,988 International Business Machines Corp. 208,800 20,719,224 Computers & Peripherals Total 39,650,212 ----------------------------------------------------------------------------- Information Technology Consulting & Accenture Ltd., Class A (a) 882,935 20,899,071 Services - 1.0% Information Technology Consulting & Services Total 20,899,071 ----------------------------------------------------------------------------- Office Electronics - 2.0% Xerox Corp. (a) 2,742,200 40,145,808 Office Electronics Total 40,145,808 ----------------------------------------------------------------------------- Software - 0.4% Microsoft Corp. 308,600 8,532,790 Software Total 8,532,790 ----------- INFORMATION TECHNOLOGY TOTAL 136,197,445 MATERIALS - 3.1% - ------------------------------------------ ----------------------------------------------------------------------------- Chemicals - 1.4% Air Products & Chemicals, Inc. 552,294 27,564,993 Chemicals Total 27,564,993 ----------------------------------------------------------------------------- Paper & Forest Products - 1.7% MeadWestvaco Corp. 739,700 19,949,709 Weyerhaeuser Co. 239,161 14,698,835 Paper & Forest Products Total 34,648,544 ----------- MATERIALS TOTAL 62,213,537 TELECOMMUNICATION SERVICES - 4.9% - ------------------------------------------ ----------------------------------------------------------------------------- Diversified Telecommunication BellSouth Corp. 1,132,000 33,088,360 Services - 4.9% CenturyTel, Inc. 129,900 3,429,360 SBC Communications, Inc. 1,216,400 31,018,200 Verizon Communications, Inc. 845,900 31,179,874 Diversified Telecommunication Services Total 98,715,794 ----------- TELECOMMUNICATION SERVICES TOTAL 98,715,794 See notes to investment portfolio. 9 - -------------------------------------------------------------------------------- January 31, 2004 (unaudited) Columbia Growth & Income Fund Common Stocks - (continued) UTILITIES - 5.1% Shares Value ($) - ------------------------------------------ ----------------------------------------------------------------------------- Electric Utilities - 5.1% American Electric Power Co., Inc. 617,240 20,152,886 Consolidated Edison, Inc. 700,000 30,681,000 Entergy Corp. 267,083 15,619,014 Southern Co. 502,379 14,970,894 TXU Corp. 902,500 21,660,000 Electric Utilities Total 103,083,794 ----------- UTILITIES TOTAL 103,083,794 ----------- TOTAL COMMON STOCKS (COST OF $1,630,569,793) 1,948,462,652 Investment Companies - 2.9% - ------------------------------------------ ----------------------------------------------------------------------------- iShares Russell 1000 Value Index Fund (cost of $52,178,054) 975,000 57,885,750 Short-Term Obligation - 0.5% Par($) - ------------------------------------------ ----------------------------------------------------------------------------- Repurchase agreement with State Street Bank & Trust Co., dated 01/30/04, due 02/02/04 at 0.930%, collateralized by a U.S. Treasury Bond maturing 04/15/04, market value of $10,217,213 (repurchase proceeds $10,015,776) (cost of $10,015,000) 10,015,000 10,015,000 Total Investments - 100.1% (cost of $1,692,762,847) (b) 2,016,363,402 Other Assets & Liabilities, Net - (0.1%) (918,673) Net Assets - 100.0% 2,015,444,729 Notes to Investment Portfolio: (a) Non-income producing. (b) Cost for both financial statement and federal income tax purposes is the same. Acronym Name ------- ---- ADR American Depositary Receipt REIT Real Estate Investment Trust See notes to financial statements. 10
STATEMENT OF ASSETS AND LIABILITIES - -------------------------------------------------------------------------------- January 31, 2004 (unaudited) Columbia Growth & Income Fund
($) - ------------------------------------------ ----------------------------------------------------------------------------- Assets: Investments, at cost 1,692,762,847 Investments, at value 2,016,363,402 Cash 633 Receivable for: Fund shares sold 3,112,496 Interest 517 Dividends 3,969,253 Expense reimbursement due from Investment Advisor 1,263 Deferred Trustees' compensation plan 39,758 ------------- Total Assets 2,023,487,322 ----------------------------------------------------------------------------- Liabilities: Payable for: Fund shares repurchased 3,708,479 Investment advisory fee 1,210,572 Transfer agent fee 2,059,014 Pricing and bookkeeping fees 117,951 Custody fee 5,372 Distribution and service fees 877,578 Deferred Trustees' fees 39,758 Other liabilities 23,869 ------------- Total Liabilities 8,042,593 Net Assets 2,015,444,729 ----------------------------------------------------------------------------- Composition of Net Assets: Paid-in capital 2,055,279,632 Undistributed net investment income 709,698 Accumulated net realized loss (364,145,156) Net unrealized appreciation on investments 323,600,555 ------------- Net Assets 2,015,444,729 ----------------------------------------------------------------------------- Class A: Net assets 671,531,573 Shares outstanding 40,825,218 Net asset value per share 16.45(a) Maximum offering price per share (Net asset value per share/0.9425) 17.45(b) ----------------------------------------------------------------------------- Class B: Net assets 783,590,134 Shares outstanding 50,616,601 Net asset value and offering price per share 15.48(a) ----------------------------------------------------------------------------- Class C: Net assets 116,220,355 Shares outstanding 7,454,673 Net asset value and offering price per share 15.59(a) ----------------------------------------------------------------------------- Class Z: Net assets 444,102,667 Shares outstanding 26,994,855 Net asset value, offering and redemption price per share 16.45
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. (b) On sales of $50,000 or more the offering price is reduced. See notes to financial statements. 11 STATEMENT OF OPERATIONS - -------------------------------------------------------------------------------- For the Six Months Ended January 31, 2004 (unaudited) Columbia Growth & Income Fund
($) - ------------------------------------------ ----------------------------------------------------------------------------- Investment Income: Dividends 20,916,835 Interest 365,589 ----------- Total Investment Income (net of foreign taxes withheld of $80,953) 21,282,424 ----------------------------------------------------------------------------- Expenses: Investment advisory fee 7,042,339 Distribution fee: Class B 2,849,064 Class C 428,545 Service fee: Class A 811,846 Class B 949,688 Class C 142,848 Transfer agent fee 3,070,863 Pricing and bookkeeping fees 280,473 Trustees' fees 26,107 Custody fee 23,263 Other expenses 155,037 ----------- Total Expenses 15,780,073 Fees and expenses waived or reimbursed by Investment Advisor (224,681) Custody earnings credit (31) ----------- Net Expenses 15,555,361 ----------- Net Investment Income 5,727,063 ----------------------------------------------------------------------------- Net Realized and Unrealized Net realized loss on investments (10,122,592) Gain (Loss) on Investments: Net change in unrealized appreciation/depreciation on investments 238,550,252 ----------- Net Gain 228,427,660 ----------- Net Increase in Net Assets from Operations 234,154,723
See notes to financial statements. 12 STATEMENTS OF CHANGES IN NET ASSETS - -------------------------------------------------------------------------------- Columbia Growth & Income Fund (UNAUDITED) SIX MONTHS ENDED PERIOD ENDED YEAR ENDED JANUARY 31, JULY 31, JUNE 30, INCREASE (DECREASE) IN NET ASSETS: 2004($) 2003(a)($) 2003($) - ------------------------------------------ ----------------------------------------------------------------------------- Operations: Net investment income 5,727,063 2,635,729 8,993,969 Net realized gain (loss) on investments (10,122,592) 8,380,929 (361,181,251) Net change in unrealized appreciation/ depreciation on investments 238,550,252 (18,186,270) 275,599,753 ---------------------------------------- Net Increase (Decrease) from Operations 234,154,723 (7,169,612) (76,587,529) ----------------------------------------------------------------------------- Distributions Declared to Shareholders: From net investment income: Class A (5,897,514) -- (3,173,507) Class B (1,496,748) -- -- Class C (222,462) -- -- Class Z (formerly Class S) (b) (4,825,958) -- -- Class Z (through 07/29/02) (b) -- -- (1,132,336) From net realized gains: Class A -- -- (13,113,326) Class B -- -- (14,310,343) Class C -- -- (2,195,247) Class Z (through 07/29/02) (b) -- -- (3,001,953) ---------------------------------------- Total Distributions Declared to Shareholders (12,442,682) -- (36,926,712) ----------------------------------------------------------------------------- Share Transactions: Class A: Subscriptions 62,279,733 10,998,695 275,649,995 Distributions reinvested 5,352,924 -- 12,464,817 Redemptions (98,138,379) (15,465,282) (355,987,815) ---------------------------------------- Net Decrease (30,505,722) (4,466,587) (67,873,003) Class B: Subscriptions 36,248,027 7,719,841 130,400,340 Distributions reinvested 1,357,036 -- 13,082,827 Redemptions (87,357,851) (12,183,503) (222,419,817) ---------------------------------------- Net Decrease (49,752,788) (4,463,662) (78,936,650) Class C: Subscriptions 8,231,002 1,520,993 35,645,799 Distributions reinvested 202,402 -- 1,967,464 Redemptions (18,975,607) (2,834,558) (42,869,122) ---------------------------------------- Net Decrease (10,542,203) (1,313,565) (5,255,859) Class Z (formerly Class S) (b): Subscriptions 62,148,666 8,461,262 217,927,301 Proceeds received in combination with original Class Z -- -- 4,557,863 Distributions reinvested 4,266,571 -- 3,886,208 Redemptions (53,664,509) (5,748,955) (62,646,371) ---------------------------------------- Net Increase 12,750,728 2,712,307 163,725,001
(a) The Fund has changed its fiscal year end from June 30 to July 31. (b) On July 29, 2002, the Fund's existing Class Z shares were combined into the Fund's Class S shares, which were subsequently redesignated as Class Z shares. See notes to financial statements. 13 STATEMENTS OF CHANGES IN NET ASSETS (continued) - -------------------------------------------------------------------------------- Columbia Growth & Income Fund
(UNAUDITED) SIX MONTHS ENDED PERIOD ENDED YEAR ENDED JANUARY 31, JULY 31, JUNE 30, 2004($) 2003(a)($) 2003($) - ------------------------------------------ ------------------------------------------------------------------------------- Class Z (through 07/29/02) (b): Subscriptions -- -- 387,731 Proceeds combined into former Class S -- -- (4,557,863) Redemptions -- -- (170,835) ------------------------------------------- Net Decrease -- -- (4,340,967) Net Increase (Decrease) from Share Transactions (78,049,985) (7,531,507) 7,318,522 Total Increase (Decrease) in Net Assets 143,662,056 (14,701,119) (106,195,719) ------------------------------------------------------------------------------- Net Assets: Beginning of period 1,871,782,673 1,886,483,792 1,992,679,511 End of period (including undistributed net investment income of $709,698, $7,425,317 and $4,789,588, respectively) 2,015,444,729 1,871,782,673 1,886,483,792 ------------------------------------------------------------------------------- Changes in Shares: Class A: Subscriptions 4,058,461 740,289 19,938,430 Issued for distributions reinvested 342,760 -- 902,615 Redemptions (6,358,599) (1,045,471) (26,325,791) ------------------------------------------- Net Decrease (1,957,378) (305,182) (5,484,746) Class B: Subscriptions 2,523,896 554,962 10,058,691 Issued for distributions reinvested 92,195 -- 1,005,610 Redemptions (6,053,173) (874,829) (17,345,105) ------------------------------------------- Net Decrease (3,437,082) (319,867) (6,280,804) Class C: Subscriptions 569,404 108,591 2,739,448 Issued for distributions reinvested 13,657 -- 150,057 Redemptions (1,307,619) (202,000) (3,334,540) ------------------------------------------- Net Decrease (724,558) (93,409) (445,035) Class Z (formerly Class S) (b): Subscriptions 4,046,454 571,033 17,134,572 Issued for combination with original Class Z -- -- 336,309 Issued for distributions reinvested 273,149 -- 281,607 Redemptions (3,464,786) (387,341) (4,606,424) ------------------------------------------- Net Increase 854,817 183,692 13,146,064 Class Z (through 07/29/02) (b): Subscriptions -- -- 26,431 Shares combined into former Class S -- -- (336,309) Redemptions -- -- (11,978) ------------------------------------------- Net Decrease -- -- (321,856)
(a) The Fund has changed its fiscal year end from June 30 to July 31. (b) On July 29, 2002, the Fund's existing Class Z shares were combined into the Fund's Class S shares, which were subsequently redesignated as Class Z shares. See notes to financial statements. 14 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- January 31, 2004 (unaudited) Columbia Growth & Income Fund Note 1. Organization Columbia Growth & Income Fund (the "Fund"), a series of Columbia Funds Trust VI (the "Trust"), is a diversified portfolio. The Trust is a Massachusetts business trust registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. Investment Goal The Fund seeks long-term growth and income. Fund Shares The Fund may issue an unlimited number of shares, and offers four classes of shares: Class A, Class B, Class C and Class Z. Each share class has its own sales charge and expense structure. Class A shares are subject to a maximum front-end sales charge of 5.75% based on the amount of initial investment. Class A shares purchased without an initial sales charge are subject to a 1.00% contingent deferred sales charge ("CDSC") on shares sold within eighteen months on an original purchase of $1 million to $25 million. Class B shares are subject to a maximum CDSC of 5.00% based upon the holding period after purchase. Class B shares will convert to Class A shares in a certain number of years after purchase, depending on the program under which shares were purchased. Class C shares are subject to a 1.00% CDSC on shares sold 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 the Fund's prospectus. Effective October 13, 2003, the Fund changed its name from Liberty Growth & Income Fund to Columbia Growth & Income Fund. Also on that date, the Trust changed its name from Liberty Funds Trust VI to Columbia Funds Trust VI. Note 2. Significant Accounting Policies Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue 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 Fund in the preparation of its financial statements. Security Valuation Equity securities are valued at the last sale price at the close of the principal exchange on which they trade. Unlisted securities or listed securities for which there were no sales during the day are valued at the closing bid price on such exchanges or over-the-counter markets. Short-term obligations maturing within 60 days are valued at amortized cost, which approximates market value. Investments in other investment companies are valued at net asset value. Investments for which market quotations are not readily available are valued at fair value as determined in good faith under consistently applied procedures established by and under the general supervision of the Board of Trustees. Security Transactions Security transactions are accounted for on the trade date. Cost is determined and gains (losses) are based upon the specific identification method for both financial statement and federal income tax purposes. 15 - -------------------------------------------------------------------------------- January 31, 2004 (unaudited) Columbia Growth & Income Fund Repurchase Agreements The Fund may engage in repurchase agreement transactions with institutions that the Fund's investment advisor has determined are creditworthy. The Fund, through its custodian, receives delivery of underlying securities collateralizing a repurchase agreement. Collateral is at least equal, at all times, to the value of the repurchase obligation including interest. A repurchase agreement transaction involves certain risks in the event of default or insolvency of the counterparty. These risks include possible delays or restrictions upon the 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. Income Recognition Interest income is recorded on the accrual basis. Corporate actions and dividend income are recorded on the ex-date. Awards from class action litigation are recorded as a reduction of cost if the Fund still owns the applicable securities on the payment date. If the Fund no longer owns the applicable securities, the proceeds are recorded as realized gains. Determination of Class Net Asset Values All income, expenses (other than class-specific expenses, as shown on the Statement of Operations), and realized and unrealized gains (losses), are allocated to each class of the Fund on a daily basis, based on the relative net assets of each class, for purposes of determining the net asset value of each class. Federal Income Tax Status The Fund intends to qualify each year as a "regulated investment company" under Subchapter M of the Internal Revenue Code, as amended, and will distribute substantially all of its taxable income, if any, for its tax year, and as such will not be subject to federal income taxes. In addition, by distributing in each calendar year substantially all of its net investment income, capital gains and certain other amounts, if any, the Fund will not be subject to federal excise tax. Therefore, no federal income or excise tax provision is recorded. Distributions to Shareholders Distributions to shareholders are recorded on ex-date. Net realized capital gains, if any, are distributed at least annually. Income and capital gains dividends are determined in accordance with income tax regulations, which may differ from GAAP. Note 3. Federal Tax Information The tax character of distributions paid during the period ended July 31, 2003 and the fiscal year ended June 30, 2003 was as follows: July 31, 2003 June 30, 2003 - ------------------------------------------------------------- Distributions paid from: Ordinary Income* $-- $ 5,091,397 - ------------------------------------------------------------- Long-Term Capital Gains -- 31,835,315 * For tax purposes short-term capital gains distributions, if any, are considered ordinary income distributions. Unrealized appreciation and depreciation at January 31, 2004, based on cost of investments for federal income tax purposes was: Unrealized appreciation $ 337,656,125 Unrealized depreciation (14,055,570) - ------------------------------------------------------------- Net unrealized appreciation $ 323,600,555 The following capital loss carryforwards, determined as of July 31, 2003, 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: Year of Capital Loss Expiration Carryforward - ------------------------------------------------------------- 2010 $241,549,397 - ------------------------------------------------------------- 2011 112,261,432 - ------------------------------------------------------------- $353,810,829 - ------------------------------------------------------------- 16 January 31, 2004 (unaudited) - -------------------------------------------------------------------------------- Columbia Growth & Income Fund Under current tax rules, certain currency and capital losses realized after October 31 may be deferred and treated as occurring on the first day of the following fiscal year. As determined on June 30, 2003, post-October capital losses of $120,643,830 attributed to security transactions were deferred to July 1, 2003. Note 4. Fees and Compensation Paid to Affiliates Investment Advisory Fee Columbia Management Advisors, Inc. ("Columbia"), an indirect, wholly owned subsidiary of FleetBoston Financial Corporation ("FleetBoston"), is the investment advisor to the Fund and provides administrative and other services. Columbia receives a monthly investment advisory fee based on the Fund's average daily net assets at the following annual rates: Average Daily Net Assets Fee Rate - -------------------------------------------------------- First $1 billion 0.80% - -------------------------------------------------------- Over $1 billion 0.60% Prior to November 1, 2003, Columbia was entitled to receive a monthly investment advisory fee based on the Fund's average daily net assets at the following annual rates: Average Daily Net Assets Fee Rate - -------------------------------------------------------- First $1 billion 0.80% - -------------------------------------------------------- Over $1 billion 0.70% In addition, for the period August 1, 2003 through October 31, 2003, Columbia voluntarily waived a portion of its investment advisory fee so that it did not exceed 0.60% annually on the Fund's average daily net assets over $1 billion. For the six months ended January 31, 2004, the Fund's annualized effective investment advisory fee rate was 0.70%. FleetBoston has entered into an agreement with Bank of America Corporation ("BOA") to merge the two financial services companies. On March 17, 2004, the shareholders of FleetBoston and BOA voted to approve the merger. The transaction is expected to be completed in the second quarter of 2004. Pricing and Bookkeeping Fees Columbia is responsible for providing pricing and bookkeeping services to the Fund under a pricing and bookkeeping agreement. Under a separate agreement (the "Outsourcing Agreement"), Columbia has delegated those functions to State Street Corporation ("State Street"). Columbia pays the total fees collected to State Street under the Outsourcing Agreement. Under its pricing and bookkeeping agreement with the Fund, Columbia receives from the Fund an annual flat fee of $10,000 paid monthly, and in any month that the Fund's average daily net assets exceed $50 million, an additional monthly fee. The additional fee rate is calculated by taking into account the fees payable to State Street under the Outsourcing Agreement. This rate is applied to the average daily net assets of the Fund for that month. The Fund also pays additional fees for pricing services. For the six months ended January 31, 2004, the Fund's annualized effective pricing and bookkeeping fee rate was 0.029%. Transfer Agent Fee Columbia Funds Services, Inc. (the "Transfer Agent"), formerly Liberty Funds Services, Inc., an affiliate of Columbia, provides shareholder services to the Fund. For such services, the Transfer Agent receives a fee, paid monthly, at the annual rate of $28.00 per open account. The Transfer Agent also receives reimbursement for certain out-of-pocket expenses. Prior to November 1, 2003, the Transfer Agent was entitled to receive a monthly transfer agent fee at the annual rate of 0.06% of the Fund's average daily net assets plus flat-rate charges based on the number of shareholder accounts and transactions. The Transfer Agent was also entitled to receive reimbursement for certain out-of-pocket expenses. For the six months ended January 31, 2004, the Fund's annualized effective transfer agent fee rate, exclusive of out-of-pocket fees, was 0.21%. 17 January 31, 2004 (unaudited) - -------------------------------------------------------------------------------- Columbia Growth & Income Fund Underwriting Discounts, Service and Distribution Fees Columbia Funds Distributor, Inc. (the "Distributor"), an affiliate of Columbia, is the principal underwriter of the Fund. Prior to October 13, 2003, Columbia Funds Distributor, Inc. was known as Liberty Funds Distributor, Inc. For the six months ended January 31, 2004, the Distributor has retained net underwriting discounts of $70,176 on sales of the Fund's Class A shares and received CDSC fees of $7,513, $835,630 and $8,741 on Class A, Class B and Class C share redemptions, respectively. The Fund has adopted a 12b-1 plan (the "Plan") which requires the payment of a monthly service fee to the Distributor at the annual rate of 0.25% of the average daily net assets of the Fund attributable to Class A, Class B and Class C shares. The Plan also requires the payment of a monthly distribution fee to the Distributor at the annual rate of 0.75% of the average daily net assets attributable to Class B and Class C shares only. 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. Custody Credits The Fund has an agreement with its custodian bank under which custody fees may be reduced by balance credits. The Fund could have invested 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. Fees Paid to Officers and Trustees The Fund pays no compensation to its officers, all of whom are employees of Columbia or its affiliates. The Fund's 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 Fund's assets. Portfolio Information For the six months ended January 31, 2004, the cost of purchases and proceeds from sales of securities, excluding short-term obligations, were $644,878,854 and $622,742,818, respectively. Note 5. Line of Credit The Fund and other affiliated funds participate in a $350,000,000 credit facility, which is used for temporary or emergency purposes to facilitate portfolio liquidity. Interest is charged to the Fund based on its borrowings. In addition, the Fund has agreed to pay commitment fees on its pro-rata portion of the unutilized line of credit. The commitment fee is included in "Other expenses" on the Statement of Operations. For the six months ended January 31, 2004, the Fund did not borrow under these arrangements. Note 6. Disclosure of Significant Risks and Contingencies Industry Focus The Fund may focus its investments in certain industries, subjecting it to greater risk than a fund that is more diversified. Legal Proceedings Columbia, the Distributor and certain of their affiliates (collectively, "the Columbia Group") have received information requests and subpoenas from various regulatory and law enforcement authorities in connection with their investigations of late trading and market timing in mutual funds. The Columbia Group has not uncovered any instances where Columbia or the Distributor were knowingly involved in late trading of mutual fund shares. 18 January 31, 2004 (unaudited) - -------------------------------------------------------------------------------- Columbia Growth & Income Fund On February 24, 2004, the Securities and Exchange Commission ("SEC") filed a civil complaint in the United States District Court for the District of Massachusetts against Columbia and the Distributor, alleging that they had violated certain provisions of the federal securities laws in connection with trading activity in mutual fund shares. Also on February 24, 2004, the New York Attorney General ("NYAG") filed a civil complaint in New York Supreme Court, County of New York against Columbia and the Distributor alleging that Columbia and the Distributor had violated certain New York anti-fraud statutes. On March 15, 2004, Columbia and the Distributor entered into agreements in principle with the SEC Division of Enforcement and NYAG in settlement of the charges. Under the agreements, Columbia and the Distributor agreed, inter alia, to the following conditions: payment of $70 million in disgorgement; payment of $70 million in civil penalties; an order requiring Columbia and the Distributor to cease and desist from violations of the antifraud provisions and other provisions of the federal securities laws; governance changes designed to maintain the independence of the mutual fund boards of trustees and ensure compliance with securities laws and their fiduciary duties; and retention of an independent consultant to review Columbia's and the Distributor's compliance policies and procedures. The agreement requires the final approval of the SEC. In a separate agreement with the NYAG, the Columbia Group has agreed to reduce mutual fund fees by $80 million over a five-year period. As a result of these matters or any adverse publicity or other developments resulting from them, there may be increased redemptions or reduced sales of fund shares, which could increase transaction costs or operating expenses, or have other adverse consequences for the funds. Note 7. Comparability of Financial Statements On February 11, 2003, the Board of Trustees approved a change in the fiscal year end of the Fund from June 30 to July 31. Note 8. Subsequent Event At a meeting held on February 10, 2004, the Board of Trustees approved the commencement of Class I shares of the Fund. The Class I shares are expected to commence operations in April 2004. 19 Financial Highlights - -------------------------------------------------------------------------------- Columbia Growth & Income Fund Selected data for a share outstanding throughout each period is as follows:
(UNAUDITED) SIX MONTHS PERIOD ENDED ENDED YEAR ENDED JUNE 30, JANUARY 31, JULY 31, ------------------------------------------------------------------------ CLASS A SHARES 2004 2003 (a) 2003 2002 2001 2000 1999 ==================================================================================================================================== Net Asset Value, Beginning of Period $ 14.69 $ 14.75 $ 15.67 $ 18.98 $ 20.60 $ 21.84 $ 20.02 - ------------------------------------------------------------------------------------------------------------------------------------ Income from Investment Operations: Net investment income (b) 0.07 0.02 0.11 0.11 0.12 0.01 0.04 Net realized and unrealized gain (loss) on investments 1.83 (0.08) (0.72) (1.89) 2.59 0.25 2.65 ------------ ------------ ------------ ------------ ------------ ------------ ------------ Total from Investment Operations 1.90 (0.06) (0.61) (1.78) 2.71 0.26 2.69 - ------------------------------------------------------------------------------------------------------------------------------------ Less Distributions Declared to Shareholders: From net investment income (0.14) -- (0.06) (0.10) -- -- -- From net realized gains -- -- (0.25) (1.43) (4.33) (1.50) (0.87) ------------ ------------ ------------ ------------ ------------ ------------ ------------ Total Distributions Declared to Shareholders (0.14) -- (0.31) (1.53) (4.33) (1.50) (0.87) - ------------------------------------------------------------------------------------------------------------------------------------ Net Asset Value, End of Period $ 16.45 $ 14.69 $ 14.75 $ 15.67 $ 18.98 $ 20.60 $ 21.84 Total return (c) 13.00%(d)(e) (0.41)%(d)(e) (3.75)%(e) (10.24)%(e) 13.34%(e) 1.43%(e) 13.97% - ------------------------------------------------------------------------------------------------------------------------------------ Ratios to Average Net Assets/ Supplemental Data: Expenses (f) 1.32%(g) 1.36%(g) 1.40% 1.31% 1.32% 1.35% 1.41% Net investment income (f) 0.88%(g) 1.93%(g) 0.83% 0.60% 0.62% 0.06% 0.19% Waiver/reimbursement 0.02%(g) 0.05%(g) 0.04% 0.05% 0.03% 0.10% -- Portfolio turnover rate 34%(d) 6%(d) 63% 47% 104% 81% 79% Net assets, end of period (000's) $671,532 $628,680 $635,415 $761,122 $503,647 $309,129 $351,972 - ------------------------------------------------------------------------------------------------------------------------------------
(a) The Fund has changed its fiscal year end from June 30 to July 31. (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) Had the Investment 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. 20 - -------------------------------------------------------------------------------- Columbia Growth & Income Fund Selected data for a share outstanding throughout each period is as follows:
(UNAUDITED) SIX MONTHS PERIOD ENDED ENDED YEAR ENDED JUNE 30, JANUARY 31, JULY 31, ------------------------------------------------------------------------ CLASS B SHARES 2004 2003 (a) 2003 2002 2001 2000 1999 ==================================================================================================================================== Net Asset Value, Beginning of Period $13.78 $13.84 $14.77 $18.01 $19.88 $21.29 $19.68 - ------------------------------------------------------------------------------------------------------------------------------------ Income from Investment Operations: Net investment income (loss) (b) 0.01 0.01 0.01 (0.03) (0.03) (0.14) (0.11) Net realized and unrealized gain (loss) on investments 1.72 (0.07) (0.69) (1.77) 2.49 0.23 2.59 ------------ ------------ ------------ ------------ ------------ ------------ ------------ Total from Investment Operations 1.73 (0.06) (0.68) (1.80) 2.46 0.09 2.48 - ------------------------------------------------------------------------------------------------------------------------------------ Less Distributions Declared to Shareholders: From net investment income (0.03) -- -- (0.01) -- -- -- From net realized gains -- -- (0.25) (1.43) (4.33) (1.50) (0.87) ------------ ------------ ------------ ------------ ------------ ------------ ------------ Total Distributions Declared to Shareholders (0.03) -- (0.25) (1.44) (4.33) (1.50) (0.87) - ------------------------------------------------------------------------------------------------------------------------------------ Net Asset Value, End of Period $15.48 $13.78 $13.84 $14.77 $18.01 $19.88 $21.29 Total return (c) 12.56%(d)(e) (0.43)%(d)(e) (4.50)%(e) (10.89)%(e) 12.46%(e) 0.64%(e) 13.12% - ------------------------------------------------------------------------------------------------------------------------------------ Ratios to Average Net Assets/ Supplemental Data: Expenses (f) 2.07%(g) 2.11%(g) 2.15% 2.06% 2.07% 2.10% 2.16% Net investment income (loss) (f) 0.13%(g) 1.18%(g) 0.07% (0.15)% (0.13)% (0.69)% (0.56)% Waiver/reimbursement 0.02%(g) 0.05%(g) 0.04% 0.05% 0.03% 0.10% -- Portfolio turnover rate 34%(d) 6%(d) 63% 47% 104% 81% 79% Net assets, end of period (000's) $783,590 $745,122 $752,605 $895,904 $883,754 $822,017 $919,542 - ------------------------------------------------------------------------------------------------------------------------------------
(a) The Fund has changed its fiscal year end from June 30 to July 31. (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 Investment 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. 21 - -------------------------------------------------------------------------------- Columbia Growth & Income Fund Selected data for a share outstanding throughout each period is as follows:
(UNAUDITED) SIX MONTHS PERIOD ENDED ENDED YEAR ENDED JUNE 30, JANUARY 31, JULY 31, ------------------------------------------------------------------------ CLASS C SHARES 2004 2003 (a) 2003 2002 2001 2000 1999 ==================================================================================================================================== Net Asset Value, Beginning of Period $ 13.88 $ 13.94 $ 14.87 $ 18.12 $ 19.99 $ 21.39 $ 19.78 - ------------------------------------------------------------------------------------------------------------------------------------ Income from Investment Operations: Net investment income (loss) (b) 0.01 0.01 0.01 (0.03) (0.02) (0.14) (0.11) Net realized and unrealized gain (loss) on investments 1.73 (0.07) (0.69) (1.78) 2.48 0.24 2.59 ------------ ------------ ------------ ------------ ------------ ------------ ------------ Total from Investment Operations 1.74 (0.06) (0.68) (1.81) 2.46 0.10 2.48 - ------------------------------------------------------------------------------------------------------------------------------------ Less Distributions Declared to Shareholders: From net investment income (0.03) -- -- (0.01) -- -- -- From net realized gains -- -- (0.25) (1.43) (4.33) (1.50) (0.87) ------------ ------------ ------------ ------------ ------------ ------------ ------------ Total Distributions Declared to Shareholders (0.03) -- (0.25) (1.44) (4.33) (1.50) (0.87) - ------------------------------------------------------------------------------------------------------------------------------------ Net Asset Value, End of Period $ 15.59 $ 13.88 $ 13.94 $ 14.87 $ 18.12 $ 19.99 $ 21.39 Total return (c) 12.54%(d)(e) (0.43)%(d)(e) (4.47)%(e) (10.88)%(e) 12.38%(e) 0.68%(e) 13.05% - ------------------------------------------------------------------------------------------------------------------------------------ Ratios to Average Net Assets/ Supplemental Data: Expenses (f) 2.07%(g) 2.11%(g) 2.15% 2.06% 2.06% 2.10% 2.16% Net investment income (loss) (f) 0.12%(g) 1.19%(g) 0.08% (0.15)% (0.13)% (0.69)% (0.56)% Waiver/reimbursement 0.02%(g) 0.05%(g) 0.04% 0.05% 0.03% 0.10% -- Portfolio turnover rate 34%(d) 6%(d) 63% 47% 104% 81% 79% Net assets, end of period (000's) $116,220 $113,542 $115,314 $129,661 $77,565 $29,303 $35,317 - ------------------------------------------------------------------------------------------------------------------------------------
(a) The Fund has changed its fiscal year end from June 30 to July 31. (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 Investment 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. 22 Columbia Growth & Income Fund - -------------------------------------------------------------------------------- Selected data for a share outstanding throughout each period is as follows:
(UNAUDITED) SIX MONTHS PERIOD PERIOD ENDED ENDED YEAR ENDED JUNE 30, ENDED JANUARY 31, JULY 31, -------------------------- JUNE 30, CLASS Z SHARES 2004 2003 (a) 2003 (b) 2002 2001 (c) ==================================================================================================================================== Net Asset Value, Beginning of Period $ 14.71 $ 14.76 $ 15.68 $ 19.00 $ 19.64 - ------------------------------------------------------------------------------------------------------------------------------------ Income from Investment Operations: Net investment income (d) 0.09 0.03 0.16 0.16 0.06 Net realized and unrealized gain (loss) on investments 1.83 (0.08) (0.74) (1.88) (0.70) ------------ ------------ ------------ ------------ ------------ Total from Investment Operations 1.92 (0.05) (0.58) (1.72) (0.64) - ------------------------------------------------------------------------------------------------------------------------------------ Less Distributions Declared to Shareholders: From net investment income (0.18) -- (0.09) (0.17) -- From net realized gains -- -- (0.25) (1.43) -- ------------ ------------ ------------ ------------ ------------ Total Distributions Declared to Shareholders (0.18) -- (0.34) (1.60) -- - ------------------------------------------------------------------------------------------------------------------------------------ Net Asset Value, End of Period $ 16.45 $ 14.71 $ 14.76 $ 15.68 $ 19.00 Total return (e) 13.12%(f)(g) (0.34)%(f)(g) (3.52)%(g) (9.94)%(g) (3.26)%(f)(g) - ------------------------------------------------------------------------------------------------------------------------------------ Ratios to Average Net Assets/Supplemental Data: Expenses (h) 1.07%(i) 1.11%(i) 1.15% 1.06% 1.08%(i) Net investment income (h) 1.13%(i) 2.18%(i) 1.13% 0.85% 0.86%(i) Waiver/reimbursement 0.02%(i) 0.05%(i) 0.04% 0.05% 0.03%(i) Portfolio turnover rate 34%(f) 6%(f) 63% 47% 104% Net assets, end of period (000's) $444,103 $384,438 $383,150 $200,908 $264,425 - ------------------------------------------------------------------------------------------------------------------------------------
(a) The Fund has changed its fiscal year end from June 30 to July 31. (b) On July 29, 2002, the Fund's existing Class Z shares were combined into the Fund's Class S shares, which were subsequently redesignated as Class Z shares. (c) Class Z shares were initially offered on February 7, 2001. Per share data and total return reflect activity from that date. (d) Per share data was calculated using average shares outstanding during the period. (e) Total return at net asset value assuming all distributions reinvested. (f) Not annualized. (g) Had the Investment 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. 23 IMPORTANT INFORMATION ABOUT THIS REPORT - -------------------------------------------------------------------------------- Columbia Growth & Income Fund Transfer Agent Columbia Funds Services, Inc. P.O. Box 8081 Boston MA 02266-8081 800.345.6611 Distributor Columbia Funds Distributor, Inc. One Financial Center Boston MA 02111 Investment Advisor Columbia Management Advisors, Inc. 100 Federal Street Boston MA 02111 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 Columbia Growth & Income Fund. 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 Columbia Funds Performance Update. A description of the policies and procedures that the fund uses to determine how to vote proxies relating to its portfolio securities is available (i) without charge, upon request, by calling 800-345-6611 and (ii) on the Securities and Exchange Commissionwebsite at http://www.sec.gov. 24 This page intentionally left blank. eDelivery Help your fund reduce printing and postage costs! Elect to get your shareholder reports by electronic delivery. With Columbia's eDelivery program, you receive an e-mail message when your shareholder report becomes available online. If your fund account is registered with Columbia Funds, you can sign up quickly and easily on our website at www.columbiafunds.com. Please note -- if you own your fund shares through a financial institution, contact the institution to see if it offers electronic delivery. If you own your fund shares through a retirement plan, electronic delivery may not be available to you. Columbia Growth & Income Fund Semiannual Report, January 31, 2004 ColumbiaFunds A Member of Columbia Management Group (C)2004 Columbia Funds Distributor, Inc. One Financial Center, Boston, MA 02111-2621 800.345.6611 www.columbiafunds.com ------------- PRSRT STD U.S. Postage PAID Holliston, MA Permit NO. 20 ------------- 779-03/091R-0204 (03/04) 04/0503 ITEM 2. CODE OF ETHICS. Note applicable at this time. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Note applicable at this time. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Note applicable at this time. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable. ITEM 6. SCHEDULE OF INVESTMENTS Note applicable at this time. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable. ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. Not applicable. ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. Not applicable. ITEM 10. CONTROLS AND PROCEDURES. (a) The registrant's principal executive officer and principal financial officer, based on his evaluation of the registrant's disclosure controls and procedures as of a date within 90 days of the filing of this report, has concluded that such controls and procedures are adequately designed to ensure that information required to be disclosed by the registrant in Form N-CSR is accumulated and communicated to the registrant's management, including the principal executive officer and principal financial officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. (b) There were no changes in the registrant's internal control over financial reporting that occurred during the registrant's last fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 11. EXHIBITS. (a)(1) Code of ethics required to be disclosed under Item 2 of Form N-CSR: Not applicable at this time. (a)(2) Certifications pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) attached hereto as Exhibit 99.CERT. (a)(3) Not applicable. (b) Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) attached hereto as Exhibit 99.906CERT. 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) Columbia Funds Trust VI ------------------------------------------------------------------ By (Signature and Title) /s/ J. Kevin Connaughton ------------------------------------------------------ J. Kevin Connaughton, President and Treasurer Date April 6, 2004 -------------------------------------------------------------------------- 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/ J. Kevin Connaughton ------------------------------------------------------ J. Kevin Connaughton, President and Treasurer Date April 6, 2004 -------------------------------------------------------------------------- EX-99.CERT 3 file002.txt CERTIFICATIONS I, J. Kevin Connaughton, certify that: 1. I have reviewed this report on Form N-CSR of Columbia Funds Trust VI; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have: (a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (c) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officers and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: April 6, 2004 /s/ J. Kevin Connaughton --------------------------------------------- J. Kevin Connaughton, President and Treasurer EX-99.906CERT 4 file003.txt CERTIFICATIONS CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 In connection with the Certified Shareholder Report of Columbia Funds Trust VI (the "Trust") on Form N-CSR for the period ending January 31, 2004, as filed with the Securities and Exchange Commission on the date hereof ("the Report"), the undersigned hereby certifies that, to his knowledge: 1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and 2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Trust. Date: April 6, 2004 /s/ J. Kevin Connaughton --------------------------------------------- J. Kevin Connaughton, President and Treasurer A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 has been provided to the Registrant and will be retained by the Registrant and furnished to the Securities and Exchange Commission (the "Commission") or its staff upon request. This certification is being furnished to the Commission solely pursuant to 18 U.S.C. ss.1350 and is not being filed as part of the Form N-CSR with the Commission. -----END PRIVACY-ENHANCED MESSAGE-----