-----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, EAU8cLuPoIUPsmaf9bBi453+tIknF9+SAmnSKov+dYhaZsqnSJM8TfoAuRw0Tzi1 3cTkjiqZ1NFuJo/jh9NPZQ== 0000891804-05-001105.txt : 20050408 0000891804-05-001105.hdr.sgml : 20050408 20050408113707 ACCESSION NUMBER: 0000891804-05-001105 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20050131 FILED AS OF DATE: 20050408 DATE AS OF CHANGE: 20050408 EFFECTIVENESS DATE: 20050408 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: 05740691 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: 07/31/05 Date of reporting period: 01/31/05 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. Section 3507. ITEM 1. REPORTS TO STOCKHOLDERS. Photo of: man and woman smiling COLUMBIA GROWTH & INCOME FUND SEMIANNUAL REPORT JANUARY 31, 2005 TABLE OF CONTENTS FUND PROFILE ................................. 1 PERFORMANCE INFORMATION ...................... 2 UNDERSTANDING YOUR EXPENSES .................. 3 ECONOMIC UPDATE .............................. 4 PORTFOLIO MANAGERS' REPORT ................... 5 FINANCIAL STATEMENTS ......................... 7 INVESTMENT PORTFOLIO ...................... 8 STATEMENT OF ASSETS AND LIABILITIES ....... 13 STATEMENT OF OPERATIONS ................... 14 STATEMENT OF CHANGES IN NET ASSETS ........ 15 NOTES TO FINANCIAL STATEMENTS ............. 17 FINANCIAL HIGHLIGHTS ...................... 22 COLUMBIA FUNDS ............................... 26 IMPORTANT INFORMATION ABOUT THIS REPORT ............................ 29 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 - ---------------------- PRESIDENT'S MESSAGE ------------------------------------------------------------ COLUMBIA GROWTH & INCOME FUND DEAR SHAREHOLDER: Photo of: Christopher Wilson In 2004, Columbia Funds became part of the Bank of America family, one of the largest, most respected financial institutions in the United States. As a direct result of this merger, a number of changes are in the works that we believe may offer significant benefits for our shareholders. Plans are underway to combine various Nations Funds and Columbia Funds together to form a single fund family that covers a wide range of markets, sectors and asset classes under the management of talented, seasoned investment professionals. As a result, some funds will be merged in order to eliminate redundancies and fund management teams will be aligned to maximize performance potential. You will receive more detailed information about these proposed mergers, and you will be asked to vote on certain fund changes that may affect you and your account. In this matter, your timely response will help us to implement the changes in 2005. The increased efficiencies we expect from a more streamlined offering of funds may help us reduce fees charged to the funds, because larger funds often benefit from size and scale of operations. For example, significant savings for the combined complex may result from the consolidation of certain vendor agreements. In fact, negotiations are currently underway to consolidate the transfer agency of all of our funds and to consolidate custodial services, each under a single vendor. We have reduced management fees for many funds as part of our settlement agreement (See Note 7 in the Notes to Financial Statements) with the New York Attorney General. As a result of these changes, we believe we will offer shareholders an even stronger lineup of investment options, with management expenses that continue to be competitive and fair. What will not change as we enter this next phase of consolidation is our commitment to the highest standards of performance and our dedication to superior service. Change for the good has another name: it's called improvement. It helps move us forward, and we believe that it represents progress for all our shareholders in their quest for long-term financial success. In the pages that follow, you'll find a discussion of the economic environment during the period followed by a detailed report from the fund's manager or managers on key factors that influenced performance. We hope that you will read the manager reports carefully and discuss any questions you might have with your financial advisor. As always, we thank you for choosing Columbia Funds. We appreciate your continued confidence. And, we look forward to helping you keep your long-term financial goals on target in the years to come. Sincerely, /s/Christopher Wilson Christopher Wilson Head of Mutual Funds, Columbia Management Christopher Wilson is Head of Mutual Funds for Columbia Management, responsible for the day-to-day delivery of mutual fund services to the firm's investors. With the exception of distribution, Chris oversees all aspects of the mutual fund services operation, including treasury, investment accounting and shareholder and broker services. Chris serves as Columbia Management's liaison to the mutual fund boards of trustees. Chris joined Bank of America in August 2004. FUND PROFILE ------------------------------------------------------------------- COLUMBIA GROWTH & INCOME FUND The information below gives you a snapshot of your fund at the end of the reporting period. Your fund is actively managed, and the composition of its portfolio will change over time. TOP 5 SECTORS AS OF 01/31/05 (%) - -------------------------------------- FINANCIALS 31.3 - -------------------------------------- ENERGY 13.6 - -------------------------------------- INDUSTRIALS 11.9 - -------------------------------------- CONSUMER STAPLES 10.4 - -------------------------------------- CONSUMER DISCRETIONARY 8.5 - -------------------------------------- TOP 10 HOLDINGS AS OF 01/31/05 (%) - -------------------------------------- CITIGROUP 4.4 - -------------------------------------- EXXON MOBIL 3.9 - -------------------------------------- GENERAL ELECTRIC 3.5 - -------------------------------------- CONOCOPHILLIPS 3.2 - -------------------------------------- JPMORGAN CHASE & CO. 2.8 - -------------------------------------- BP PLC 2.7 - -------------------------------------- U.S. BANCORP 2.4 - -------------------------------------- WELLS FARGO & CO. 2.4 - -------------------------------------- AMERICAN INTERNATIONAL GROUP 2.1 - -------------------------------------- SBC COMMUNICATIONS 2.0 - -------------------------------------- Sector breakdown and portfolio holdings are calculated as a percentage of net assets. Management style is determined by Columbia Management, and is based on the investment strategy and process as outlined in the fund's prospectus. [SIDEBAR INFORMATION]: SUMMARY o FOR THE SIX-MONTH PERIOD ENDED JANUARY 31, 2005, THE FUND'S CLASS A SHARES RETURNED 9.03% WITHOUT SALES CHARGE. o CONTINUED ECONOMIC GROWTH, EXPANDING CORPORATE PROFITS AND A FAVORABLE RESPONSE TO THE ELECTION PROPELLED THE MARKETS HIGHER DURING THE PERIOD. o STRONG PERFORMANCE AMONG UTILITIES, CONSUMER STAPLES AND ENERGY COMPANIES LED PERFORMANCE IN THE PORTFOLIO. OBJECTIVE Seeks long-term growth and income TOTAL NET ASSETS $1,906.7 billion [Illustration of arrow pointing up] CLASS A SHARES 9.03% [Illustration of arrow pointing up] RUSSELL 1000 VALUE INDEX 11.67% Morningstar style box Equity Style/Value // Size/Large 1 PERFORMANCE INFORMATION -------------------------------------------------------- COLUMBIA GROWTH & INCOME FUND MOUNTAIN CHART: RUSSELL 1000 CLASS A SHARES CLASS A SHARES VALUE INDEX WITHOUT SALES CHARGE WITH SALES CHARGE 02/1995 10000 10000 9425 10396 10470 9868 10625 10722 10106 10960 10957 10327 11421 11410 10754 11575 11620 10951 11978 11996 11306 12147 11927 11241 12586 12338 11629 12462 12259 11554 13092 12706 11976 13421 12634 11908 13840 12976 12230 13945 13185 12427 14182 13195 12436 14236 13679 12892 14414 14021 13215 14425 13809 13015 13880 13065 12314 14277 13475 12700 14845 14067 13258 15420 14429 13600 16538 15489 14598 16326 15120 14251 17118 16157 15228 17369 16188 15257 16744 15616 14719 17447 16561 15609 18423 17547 16538 19213 18245 17196 20658 19909 18764 19922 19160 18059 21126 20231 19068 20536 19264 18157 21444 19993 18843 22070 20438 19263 21757 20649 19462 23221 22150 20876 24642 23240 21904 24807 23228 21893 24440 22631 21330 24753 23475 22126 24317 23053 21727 20699 19325 18214 21887 20181 19021 23583 21846 20590 24682 23194 21861 25521 24537 23126 25726 25187 23739 25363 24135 22747 25888 24931 23497 28306 25617 24144 27994 25261 23808 28806 26756 25217 27962 26058 24559 26925 25763 24282 25985 24784 23359 27482 25825 24340 27268 26107 24605 27398 27336 25764 26505 25874 24386 24536 24872 23442 27529 27666 26075 27210 27666 26075 27496 27480 25900 26239 27137 25576 26567 27308 25737 28044 28321 26692 28302 28598 26954 28998 30060 28331 27923 30231 28493 29322 31776 29949 29433 31661 29841 28615 31354 29551 27605 30332 28588 28957 30933 29154 29609 31499 29688 28951 30752 28984 28891 31580 29764 27732 31352 29549 25780 30252 28512 25558 30203 28467 27043 31387 29583 27681 31604 29787 27468 31092 29304 27512 30703 28938 28813 32272 30417 27825 30988 29206 27964 30969 29188 26359 27606 26019 23908 25439 23976 24089 25650 24175 21411 22074 20805 22997 24013 22632 24446 25828 24343 23385 24733 23311 22819 23850 22478 22210 22500 21206 22248 22410 21121 24205 23994 22615 25769 25957 24464 26091 26570 25042 26480 26461 24939 26893 26892 25346 26629 26386 24869 28259 27305 25735 28643 27575 25989 30408 29464 27770 30943 29900 28181 31605 30719 28953 31327 30575 28817 30563 29847 28131 30875 29865 28148 31603 30683 28919 31158 30119 28387 31600 30465 28713 32090 30919 29141 32622 31210 29415 34273 32517 30648 35421 33428 31506 01/2005 34791 32845 30956 The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The Russell 1000 Value Index is an unmanaged index that measures the performance of those Russell 1000 Index companies with lower price-to-book ratios and lower forecasted growth values. 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. AVERAGE ANNUAL TOTAL RETURN AS OF 01/31/05 (%)
- ----------------------------------------------------------------------------------------------------------------- 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) 9.03 2.76 8.59 3.59 8.60 7.60 9.15 - ----------------------------------------------------------------------------------------------------------------- 1-YEAR 9.83 3.51 8.95 3.95 8.95 7.95 10.08 - ----------------------------------------------------------------------------------------------------------------- 5-YEAR 4.89 3.65 4.08 3.78 4.08 4.08 5.12 - ----------------------------------------------------------------------------------------------------------------- 10-YEAR 12.63 11.96 11.78 11.78 11.79 11.79 12.76 - -----------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN AS OF 12/31/04 (%)
- ----------------------------------------------------------------------------------------------------------------- SHARE CLASS A B C Z - ----------------------------------------------------------------------------------------------------------------- SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT - ----------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------- 6-MONTH (CUMULATIVE) 8.95 2.69 8.57 3.57 8.51 7.51 9.07 - ----------------------------------------------------------------------------------------------------------------- 1-YEAR 13.45 6.93 12.55 7.55 12.53 11.53 13.71 - ----------------------------------------------------------------------------------------------------------------- 5-YEAR 4.11 2.88 3.33 3.03 3.32 3.32 4.34 - ----------------------------------------------------------------------------------------------------------------- 10-YEAR 13.11 12.44 12.26 12.26 12.26 12.26 13.24 - -----------------------------------------------------------------------------------------------------------------
THE "WITH SALES CHARGE" RETURNS INCLUDE THE MAXIMUM INITIAL SALES CHARGE OF 5.75% FOR CLASS A SHARES, MAXIMUM CONTINGENT DEFERRED SALES CHARGE OF 5.00% FOR CLASS B SHARES AND 1.00% FOR CLASS C SHARES FOR THE FIRST YEAR ONLY. THE "WITHOUT SALES CHARGE" RETURNS DO NOT INCLUDE THE EFFECT OF SALES CHARGES. IF THEY HAD, RETURNS WOULD BE LOWER. ALL RESULTS SHOWN ASSUME REINVESTMENT OF DISTRIBUTIONS. CLASS Z SHARES ARE SOLD AT NET ASSET VALUE WITH NO RULE 12B-1 FEES. 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 Z share (newer class shares) performance information includes returns of the fund's class A shares (older class shares), as its expense structure more closely resembles that of 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. [SIDEBAR INFORMATION]: PERFORMANCE OF A $10,000 INVESTMENT 02/01/95 - 01/31/05 ($) - -------------------------------------- SALES CHARGE WITHOUT WITH - -------------------------------------- CLASS A 32,845 30,956 - -------------------------------------- CLASS B 30,460 30,460 - -------------------------------------- CLASS C 30,473 30,473 - -------------------------------------- CLASS Z 33,220 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, when redeemed, may be worth more or less than the original cost. Please visit www.columbiafunds.com for daily and most recent month-end performance updates. 2 UNDERSTANDING YOUR EXPENSES ---------------------------------------------------- COLUMBIA GROWTH & INCOME FUND As a fund shareholder, you incur two types of costs. There are transaction costs, which generally include sales charges on purchases and may include redemption or exchange fees. There are also continuing costs, which generally include investment advisory fees, Rule 12b-1 fees and other fund expenses. The information on this page is intended to help you understand your ongoing costs of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. ANALYZING YOUR FUND'S EXPENSES BY SHARE CLASS To illustrate these ongoing costs, we have provided an example and calculated the expenses paid by investors in each share class during the reporting period. The information in the following table is based on an initial investment of $1,000, which is invested at the beginning of the reporting period and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the "actual" column is calculated using the fund's actual operating expenses and total return for the period. The amount listed in the "hypothetical" column for each share class assumes that the return each year is 5% before expenses and includes the fund's actual expense ratio. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during this reporting period. 08/01/04 - 01/31/05
- ------------------------------------------------------------------------------------------------------------------------ ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID FUND'S ANNUALIZED BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($) EXPENSE RATIO (%) - ------------------------------------------------------------------------------------------------------------------------ ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL - ------------------------------------------------------------------------------------------------------------------------ CLASS A 1,000.00 1,000.00 1,090.29 1,019.00 6.48 6.26 1.23 - ------------------------------------------------------------------------------------------------------------------------ CLASS B 1,000.00 1,000.00 1,085.90 1,015.22 10.41 10.06 1.98 - ------------------------------------------------------------------------------------------------------------------------ CLASS C 1,000.00 1,000.00 1,086.00 1,015.22 10.41 10.06 1.98 - ------------------------------------------------------------------------------------------------------------------------ CLASS Z 1,000.00 1,000.00 1,091.50 1,020.27 5.17 4.99 0.98 - ------------------------------------------------------------------------------------------------------------------------
Expenses paid during the period are equal to the fund's annualized expense ratio, multiplied by the average account value over the period, then multiplied by the number of days in the fund's most recent fiscal half-year and divided by 365. It is important to note that the expense amounts shown in the table are meant to highlight only ongoing costs of investing in the fund and do not reflect any transactional costs, such as sales charges, redemption or exchange fees. Therefore, the hypothetical examples provided may not help you determine the relative total costs of owning different funds. If these transactional costs were included, your costs would have been higher. COMPARE WITH OTHER FUNDS Since all mutual fund companies are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the fund with other funds. To do so, compare the 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the continuing cost of investing in a fund and do not reflect any transactional costs, such as sales charges or redemption or exchange fees. [SIDEBAR INFORMATION]: ESTIMATING YOUR ACTUAL EXPENSES To estimate the expenses that you paid over the period, first you will need your account balance at the end of the period: o FOR SHAREHOLDERS WHO RECEIVE THEIR ACCOUNT STATEMENTS FROM COLUMBIA FUNDS SERVICES, INC., YOUR ACCOUNT BALANCE IS AVAILABLE ONLINE AT WWW.COLUMBIAFUNDS.COM OR BY CALLING SHAREHOLDER SERVICES AT 800.345.6611 o FOR SHAREHOLDERS WHO RECEIVE THEIR ACCOUNT STATEMENTS FROM THEIR BROKERAGE FIRM, CONTACT YOUR BROKERAGE FIRM TO OBTAIN YOUR ACCOUNT BALANCE 1. DIVIDE YOUR ENDING ACCOUNT BALANCE BY $1,000. FOR EXAMPLE, IF AN ACCOUNT BALANCE WAS $8,600 AT THE END OF THE PERIOD, THE RESULT WOULD BE 8.6 2. IN THE SECTION OF THE TABLE BELOW TITLED "EXPENSES PAID DURING THE PERIOD," LOCATE THE AMOUNT FOR YOUR SHARE CLASS. YOU WILL FIND THIS NUMBER IS IN THE COLUMN LABELED "ACTUAL." MULTIPLY THIS NUMBER BY THE RESULT FROM STEP 1. YOUR ANSWER IS AN ESTIMATE OF THE EXPENSES YOU PAID ON YOUR ACCOUNT DURING THE PERIOD 3 ECONOMIC UPDATE ---------------------------------------------------------------- COLUMBIA GROWTH & INCOME FUND During the six-month period that began August 1, 2004, and ended January 31, 2005, the US economy grew at a healthy pace, as household spending expanded and business investment in equipment and software climbed at a double-digit pace. Fourth quarter gross domestic product (GDP) was originally estimated at 3.1%. It was restated at 3.8% as nearly all sectors that contribute to GDP were revised higher. Job growth dominated the economic news as the pace of new job creation picked up and more than two million jobs were created in 2004. January's payrolls came in below expectations, however we expect generally solid advances in the months ahead. In response to an improved labor market, consumer confidence soared in December and rose again in January. For 2004, holiday sales were reported to be the strongest in five years as consumer confidence continued to lift spending, especially at high-end specialty stores and wholesale clubs. STOCKS PICK UP MOMENTUM After a weak start, stock market performance picked up in the second half of the six-month reporting period as employment news improved and uncertainty surrounding the presidential election was resolved. The S&P 500 Index returned 8.16% for the period. The majority of that return was generated in November and December. In January, concerns over the Iraqi elections, the pace of interest-rate hikes by the Federal Reserve Board (the Fed) and some disappointing earnings guidance cooled the stock market's advance. Small-and mid-cap stocks led the market and value stocks generally outperformed growth stocks. Energy and utilities stocks were the best-performing sectors for the six-month period. BONDS DELIVER SOLID RETURNS Despite a weak start, all sectors of the US bond market delivered solid returns for the six-month period. As the Fed raised short-term interest rates, the bond market responded favorably and the Lehman Brothers Aggregate Bond Index returned 3.81%. Yields on intermediate and long-term bonds edged lower--and prices rose during the six-month period. The 10-year Treasury yield rose sharply in November, but it reversed course in December and January. As a result, Treasuries were the strongest performing sector of the bond market in January. High-yield bonds, which can be less sensitive to changing interest rates, led the fixed income markets for the period. The Merrill Lynch US High Yield, Cash Pay Index gained 7.74%. A relatively strong economy helped improve credit quality and the sector's high yields attracted investors seeking income. However, high-yield bonds gave up some ground in January. As Treasuries rebounded, high-yield bonds drifted into negative territory. HIGHER SHORT-TERM INTEREST RATES The Fed made good on its announced intentions to raise the federal funds rate, a key short-term rate, at a measured pace. After four one-quarter percentage point increases, the federal funds rate stood at 2.25% at the end of the period.1 The Fed indicated that it would continue to raise short-term interest rates in an effort to balance economic growth against inflationary pressures. 1 On February 2, the Fed raised the federal funds rate to 2.50%. [SIDEBAR INFORMATION]: SUMMARY FOR THE SIX-MONTH PERIOD ENDED JANUARY 31, 2005 o AFTER A WEAK START, STOCK PRICES BOUNCED BACK IN NOVEMBER AND DECEMBER, HELPING THE S&P 500 INDEX TO A 8.16% GAIN FOR THE SIX-MONTH PERIOD. VALUE STOCKS GENERALLY OUTPERFORMED GROWTH STOCKS, AND SMALL AND MID-CAP STOCKS OUTPERFORMED LARGE-CAP STOCKS, AS MEASURED BY THE RUSSELL INDICES. [Illustration of arrow pointing up] S&P INDEX 8.16% [Illustration of arrow pointing up] RUSSELL 2000 INDEX 13.88% o INVESTMENT-GRADE BONDS DELIVERED SOLID GAINS. THE LEHMAN BROTHERS AGGREGATE BOND INDEX RETURNED 3.81%. HIGH-YIELD BONDS, WHICH CAN BE LESS SENSITIVE TO CHANGING INTEREST RATES, LED THE FIXED INCOME MARKETS. THE MERRILL LYNCH US HIGH YIELD, CASH PAY INDEX RETURNED 7.74%. [Illustration of arrow pointing up] Lehman Index 3.81% [Illustration of arrow pointing up] Merrill Lynch Index 7.74% The S&P 500 Index is an unmanaged index that tracks the performance of 500 widely held, large capitalization US stocks. The Russell 2000 Index is an unmanaged index that tracks the performance of the 2000 smallest of the 3,000 largest U.S. companies based on market capitalization. The Lehman Brothers Aggregate Bond Index is a market value-weighted index that tracks the performance of fixed-rate, publicly placed, dollar-denominated and non-convertible investment grade corporate debt issues. The Merrill Lynch US High Yield, Cash Pay Index is an unmanaged index that tracks the performance of non-investment-grade corporate bonds. 1 On Feburary 2, the Fed raised the federal funds rate to 2.50%. 4 PORTFOLIO MANAGERS' REPORT ----------------------------------------------------- COLUMBIA GROWTH & INCOME FUND For the six-month period ended January 31, 2005, Columbia Growth & Income Fund class A shares returned 9.03% without sales charge. The Russell 1000 Value Index gained 11.67%, and the average return of the Morningstar(R) Large Value Category was 9.42%.1 The fund's emphasis on large cap, high quality names kept it out of some of the smaller, lower quality names that led performance when the market rallied in the fourth quarter of 2004. However, we remain committed to our large cap, high quality strategy, which has been rewarding to our shareholders over the long term. UTILITIES, CONSUMER STAPLES AND ENERGY STOCKS LED PERFORMANCE Solid economic growth, expanding corporate profits and a decisive presidential victory helped spur a stock market rally in the final months of 2004. In this environment, fund performance was led by the utility sector, which benefited from continued low interest rates, restructuring and, we believe, a general concern among investors that economically-sensitive sectors were poised for a slowdown. TXU, which has benefited from new management and corporate restructuring, continued its strong performance. It gained 76% for the period and was the best performing stock in the portfolio. Entergy, a utilities holding company, gained 22% over the period. The fund also benefited from its investments in consumer staples companies. Good news on the tobacco litigation front and continued strong cash flow helped Altria Group to a 37% return for the period. The fund benefited from holding Gillette, which agreed to be acquired at a handsome premium by Proctor & Gamble. Several other high quality consumer staple companies, including Clorox, ConAgra Foods and Kraft Foods, generated double-digit gains during the period. Although energy prices were volatile during the period, the energy sector, which accounted for 13.6% of the fund's assets, turned in a good performance for the fund. Oil service company Halliburton led the group with a 30% return. Shares of the company moved higher when the court approved the company's settlement of all asbestos claims. The company also appears well positioned to benefit from a pickup in spending by large integrated oil companies. In addition, ConocoPhillips, Royal Dutch Petroleum and ChevronTexaco each returned more than 15% for the period. Telecommunications services was the only sector that declined for the period, and the fund was helped by its underweight in the sector throughout the period. BellSouth, Verizon Communications and SBC Communications each fell modestly during the period as cutthroat competition and new technologies cast doubt on the continued success of their existing business models. Investments in the financial sector were positive for the period but did not keep up with that portion of the index. Weak performance of American 1 (C)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. Morningstar Categories compare the performance of funds with similar investment objectives and strategies. [SIDEBAR INFORMATION]: NET ASSET VALUE PER SHARE AS OF 01/31/05 ($) - ------------------------------------ CLASS A 17.85 - ------------------------------------ CLASS B 16.77 - ------------------------------------ CLASS C 16.89 - ------------------------------------ CLASS Z 17.85 - ------------------------------------ DISTRIBUTIONS DECLARED PER SHARE AS OF 08/01/04 - 01/31/05 ($) - ------------------------------------ CLASS A 0.22 - ------------------------------------ CLASS B 0.10 - ------------------------------------ CLASS C 0.10 - ------------------------------------ CLASS Z 0.26 - ------------------------------------ HOLDINGS DISCUSSED IN THIS REPORT AS OF 01/31/05 (%) - ------------------------------------ TXU 2.0 - ------------------------------------ ENTERGY 1.0 - ------------------------------------ ALTRIA GROUP 1.3 - ------------------------------------ GILLETTE 1.2 - ------------------------------------ CLOROX 1.0 - ------------------------------------ CONAGRA FOODS 0.5 - ------------------------------------ KRAFT FOODS 1.3 - ------------------------------------ HALLIBURTON 1.3 - ------------------------------------ CONOCOPHILLIPS 3.2 - ------------------------------------ ROYAL DUTCH PETROLEUM 1.0 - ------------------------------------ CHEVRONTEXACO 0.6 - ------------------------------------ BELLSOUTH 0.8 - ------------------------------------ VERIZON COMMUNICATIONS 1.6 - ------------------------------------ SBC COMMUNICATIONS 2.0 - ------------------------------------ AMERICAN INTERNATIONAL GROUP 2.1 - ------------------------------------ Your fund is actively managed and the composition of the portfolio will change over time. Information provide is calculated as a percentage of net assets. 5 - -------------------------------------------------------------------------------- COLUMBIA GROWTH & INCOME FUND International Group, Marsh & McLennan and St. Paul Travelers held gains to 7% from the sector compared with 10.5% from the financial sector of the Russell 1000 Value Index. Marsh & McLennan and St. Paul Travelers were eliminated during the period. LOOKING AHEAD We remain optimistic about the stock market's long-term prospects and cautiously optimistic about the short term. We believe that valuations are reasonable but not cheap. If interest rates move higher, which they are likely to do, it may be difficult for stock prices to move higher relative to earnings. As a result, we expect gains to track the growth in corporate profits more closely in the period ahead. We believe profits are likely to slow from the 20% growth rate we saw in 2004. In this environment, we will continue to pay careful attention to the quality of the fund's holdings, including cash flows, capital discipline and valuation. We remain committed to implementing our value discipline and will continue to emphasize relatively high quality, large companies. Brian Cunningham has co-managed Columbia Growth & Income Fund since November 2003 and has been with the advisor or its predecessors or affiliate organizations since 1987. /s/ Brian Cunningham Photo of: Brian Cunningham Gregory M. Miller has co-managed the fund since April 2003 and has been with the advisor or its predecessors or affiliate organizations since 1985. /s/ Gregory M. Miller Photo of: Gregory M. Miller Richard Dahlberg, CFA, has co-managed the fund since October 2003 and has been with the advisor since 2003. /s/ Richard Dahlberg Photo of: Richard Dahlberg Equity investments are affected by stock market fluctuations that occur in response to economic and business developments. 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. [SIDEBAR INFORMATION]: We will continue to pay careful attention to the quality of the fund's holdings, including cash flows, capital discipline and valuation. We remain committed to implementing our value discipline and will continue to emphasize relatively high quality, large companies. 6 FINANCIAL STATEMENTS ----------------------------------------------------------- JANUARY 31, 2005 (UNAUDITED) 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 AND LIABILITIES This statement details the fund's assets, liabilities, net assets and share price for each share class as of the last day of the reporting period. 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 accrued by the fund during the reporting period. 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 IN NET ASSETS This statement demonstrates how the fund's net assets were affected by its operating results, distributions to shareholders and shareholder transactions (e.g., subscriptions, redemptions and dividend reinvestments) during the reporting period. The Statement of Changes in Net Assets also details changes in the number of shares outstanding. ------------------------------------------------------------------------------------ NOTES TO FINANCIAL STATEMENTS These notes disclose the organizational background of 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 risks and contingencies. ------------------------------------------------------------------------------------ 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 the classes' performance and certain key ratios (e.g., class expenses and net investment income as a percentage of average net assets).
7 INVESTMENT PORTFOLIO ----------------------------------------------------------- JANUARY 31, 2005 (UNAUDITED) COLUMBIA GROWTH & INCOME FUND COMMON STOCKS - 98.5%
CONSUMER DISCRETIONARY - 8.5% SHARES VALUE ($) - ------------------------------------------ ----------------------------------------------------------------------------- HOTELS, RESTAURANTS & LEISURE - 1.4% Harrah's Entertainment, Inc. 101,874 6,442,512 McDonald's Corp. 601,207 19,473,095 Hotels, Restaurants & Leisure Total 25,915,607 ----------------------------------------------------------------------------- MEDIA - 3.7% Clear Channel Communications, Inc. 242,527 7,865,150 Comcast Corp., Class A (a) 288,072 9,273,038 McGraw-Hill Companies, Inc. 254,400 23,023,200 Time Warner, Inc. (a) 1,226,403 22,075,254 Viacom, Inc., Class A 231,527 8,712,361 Media Total 70,949,003 ----------------------------------------------------------------------------- MULTILINE RETAIL - 1.1% Federated Department Stores, Inc. 268,030 15,224,104 May Department Stores Co. 178,320 6,045,048 Multiline Retail Total 21,269,152 ----------------------------------------------------------------------------- SPECIALTY RETAIL - 2.3% Home Depot, Inc. 345,633 14,260,818 Limited Brands, Inc. 454,232 10,765,298 Office Depot, Inc. (a) 1,100,715 19,031,362 Specialty Retail Total 44,057,478 ----------- CONSUMER DISCRETIONARY TOTAL 162,191,240 CONSUMER STAPLES - 10.4% - ------------------------------------------ ----------------------------------------------------------------------------- BEVERAGES - 1.9% PepsiCo, Inc. 672,423 36,109,115 Beverages Total 36,109,115 ----------------------------------------------------------------------------- FOOD PRODUCTS - 2.1% ConAgra Foods, Inc. 329,662 9,725,029 Hershey Foods Corp. 88,427 5,172,095 Kraft Foods, Inc., Class A 754,621 25,642,022 Food Products Total 40,539,146 ----------------------------------------------------------------------------- HOUSEHOLD PRODUCTS - 3.7% Clorox Co. 331,913 19,722,270 Kimberly-Clark Corp. 392,954 25,742,417 Procter & Gamble Co. 457,490 24,352,193 Household Products Total 69,816,880 ----------------------------------------------------------------------------- PERSONAL PRODUCTS - 1.2% Gillette Co. 438,189 22,224,946 Personal Products Total 22,224,946 ----------------------------------------------------------------------------- TOBACCO - 1.5% Altria Group, Inc. 379,482 24,222,336 UST, Inc. 101,164 5,124,968 Tobacco Total 29,347,304 ----------- CONSUMER STAPLES TOTAL 198,037,391 ENERGY - 13.6% - ------------------------------------------ ----------------------------------------------------------------------------- ENERGY EQUIPMENT & SERVICES - 1.6% Halliburton Co. 621,742 25,572,248 National-Oilwell, Inc. (a) 134,517 4,960,987 Energy Equipment & Services Total 30,533,235 ----------------------------------------------------------------------------- See Accompanying Notes to Financial Statements. 8 - -------------------------------------------------------------------------------- JANUARY 31, 2005 (UNAUDITED) COLUMBIA GROWTH & INCOME FUND COMMON STOCKS - (CONTINUED) ENERGY - (CONTINUED) SHARES VALUE ($) - ------------------------------------------ ----------------------------------------------------------------------------- OIL & GAS - 12.0% BP PLC, ADR 878,903 52,400,197 ChevronTexaco Corp. 193,838 10,544,787 ConocoPhillips 664,314 61,641,696 Exxon Mobil Corp. 1,427,507 73,659,361 Marathon Oil Corp. 252,305 9,771,773 Royal Dutch Petroleum Co., N.Y. Registered Shares 340,953 19,935,522 Oil & Gas Total 227,953,336 ----------- ENERGY TOTAL 258,486,571 FINANCIALS - 31.3% - ------------------------------------------ ----------------------------------------------------------------------------- CAPITAL MARKETS - 3.9% Bank of New York Co., Inc. 809,142 24,039,609 Goldman Sachs Group, Inc. 170,293 18,366,100 Janus Capital Group, Inc. 597,429 8,859,872 Morgan Stanley 176,441 9,873,638 State Street Corp. 279,158 12,509,070 Capital Markets Total 73,648,289 ----------------------------------------------------------------------------- COMMERCIAL BANKS - 7.8% National City Corp. 499,578 17,759,998 PNC Financial Services Group, Inc. 169,923 9,153,752 U.S. Bancorp 1,527,294 45,895,185 Wachovia Corp. 550,638 30,202,494 Wells Fargo & Co. 741,956 45,481,903 Commercial Banks Total 148,493,332 ----------------------------------------------------------------------------- CONSUMER FINANCE - 0.8% MBNA Corp. 581,233 15,449,173 Consumer Finance Total 15,449,173 ----------------------------------------------------------------------------- DIVERSIFIED FINANCIAL SERVICES - 7.3% Citigroup, Inc. 1,719,244 84,328,918 JPMorgan Chase & Co. 1,455,043 54,316,755 Diversified Financial Services Total 138,645,673 ----------------------------------------------------------------------------- INSURANCE - 8.0% AFLAC, Inc. 280,194 11,070,465 Ambac Financial Group, Inc. 278,330 21,398,010 American International Group, Inc. 599,472 39,738,999 Chubb Corp. 136,619 10,175,383 Hartford Financial Services Group, Inc. 242,359 16,308,337 Lincoln National Corp. 510,143 23,537,998 Willis Group Holdings Ltd. 264,676 10,237,668 XL Capital Ltd., Class A 279,559 20,905,422 Insurance Total 153,372,282 ----------------------------------------------------------------------------- REAL ESTATE - 1.8% Archstone-Smith Trust, REIT 336,937 11,556,939 AvalonBay Communities, Inc., REIT 157,700 10,553,284 Kimco Realty Corp., REIT 228,576 12,109,957 Real Estate Total 34,220,180 ----------------------------------------------------------------------------- THRIFTS & MORTGAGE FINANCE - 1.7% Countrywide Financial Corp. 359,272 13,293,064 Freddie Mac 291,630 19,040,523 Thrifts & Mortgage Finance Total 32,333,587 ----------- FINANCIALS TOTAL 596,162,516 See Accompanying Notes to Financial Statements. 9 - -------------------------------------------------------------------------------- JANUARY 31, 2005 (UNAUDITED) COLUMBIA GROWTH & INCOME FUND COMMON STOCKS - (CONTINUED) HEALTH CARE - 4.2% SHARES VALUE ($) - ------------------------------------------ ----------------------------------------------------------------------------- HEALTH CARE PROVIDERS & SERVICES - 1.5% Aetna, Inc. 190,910 24,255,115 CIGNA Corp. 60,938 4,890,275 Health Care Providers & Services Total 29,145,390 ----------------------------------------------------------------------------- PHARMACEUTICALS - 2.7% Bristol-Myers Squibb Co. 349,046 8,181,638 Johnson & Johnson 230,933 14,941,365 Merck & Co., Inc. 418,885 11,749,724 Pfizer, Inc. 672,133 16,238,734 Pharmaceuticals Total 51,111,461 ----------- HEALTH CARE TOTAL 80,256,851 INDUSTRIALS - 11.9% - ------------------------------------------ ----------------------------------------------------------------------------- AEROSPACE & DEFENSE - 3.2% General Dynamics Corp. 238,154 24,589,400 United Technologies Corp. 356,688 35,911,348 Aerospace & Defense Total 60,500,748 ----------------------------------------------------------------------------- COMMERCIAL SERVICES & SUPPLIES - 1.9% Cendant Corp. 433,061 10,198,586 Republic Services, Inc. 168,898 5,568,567 Waste Management, Inc. 707,966 20,531,014 Commercial Services & Supplies Total 36,298,167 ----------------------------------------------------------------------------- INDUSTRIAL CONGLOMERATES - 5.3% General Electric Co. 1,854,414 66,999,978 Textron, Inc. 484,748 34,892,161 Industrial Conglomerates Total 101,892,139 ----------------------------------------------------------------------------- MACHINERY - 1.5% Deere & Co. 201,987 14,023,958 Eaton Corp. 220,575 14,996,894 Machinery Total 29,020,852 ----------- INDUSTRIALS TOTAL 227,711,906 INFORMATION TECHNOLOGY - 5.6% - ------------------------------------------ ----------------------------------------------------------------------------- COMMUNICATIONS EQUIPMENT - 1.1% Nokia Oyj, ADR 1,351,680 20,653,670 Communications Equipment Total 20,653,670 ----------------------------------------------------------------------------- COMPUTERS & PERIPHERALS - 2.1% International Business Machines Corp. 216,202 20,197,591 Lexmark International, Inc., Class A (a) 231,301 19,278,938 Computers & Peripherals Total 39,476,529 ----------------------------------------------------------------------------- IT SERVICES - 1.3% Accenture Ltd., Class A (a) 914,238 23,815,900 IT Services Total 23,815,900 ----------------------------------------------------------------------------- OFFICE ELECTRONICS - 0.7% Xerox Corp. (a) 891,876 14,162,991 Office Electronics Total 14,162,991 ----------------------------------------------------------------------------- SOFTWARE - 0.4% Microsoft Corp. 319,541 8,397,538 Software Total 8,397,538 ----------- INFORMATION TECHNOLOGY TOTAL 106,506,628 See Accompanying Notes to Financial Statements. 10 - -------------------------------------------------------------------------------- JANUARY 31, 2005 (UNAUDITED) COLUMBIA GROWTH & INCOME FUND COMMON STOCKS - (CONTINUED) MATERIALS - 3.7% SHARES VALUE ($) - ------------------------------------------ ----------------------------------------------------------------------------- CHEMICALS - 1.7% Air Products & Chemicals, Inc. 571,875 33,689,157 Chemicals Total 33,689,157 ----------------------------------------------------------------------------- PAPER & FOREST PRODUCTS - 2.0% MeadWestvaco Corp. 765,925 22,127,573 Weyerhaeuser Co. 247,640 15,452,736 Paper & Forest Products Total 37,580,309 ----------- MATERIALS TOTAL 71,269,466 TELECOMMUNICATION SERVICES - 4.4% - ------------------------------------------ ----------------------------------------------------------------------------- DIVERSIFIED TELECOMMUNICATION SERVICES - 4.4% BellSouth Corp. 561,796 14,741,527 SBC Communications, Inc. 1,626,720 38,650,867 Verizon Communications, Inc. 875,890 31,172,925 Diversified Telecommunication Services Total 84,565,319 ----------- TELECOMMUNICATION SERVICES TOTAL 84,565,319 UTILITIES - 4.9% - ------------------------------------------ ----------------------------------------------------------------------------- ELECTRIC UTILITIES - 4.9% Entergy Corp. 276,552 19,225,895 Exelon Corp. 343,871 15,216,292 FPL Group, Inc. 127,204 9,748,915 PG&E Corp. (a) 312,810 10,948,350 TXU Corp. 545,921 37,777,733 Electric Utilities Total 92,917,185 ----------- UTILITIES TOTAL 92,917,185 TOTAL COMMON STOCKS (COST OF $1,541,902,468) 1,878,105,073 INVESTMENT COMPANY - 1.2% - ------------------------------------------ ----------------------------------------------------------------------------- iShares Russell 1000 Value Index Fund 353,901 23,077,884 TOTAL INVESTMENT COMPANY (COST OF $21,569,789) 23,077,884 SHORT-TERM OBLIGATION - 0.4% - ------------------------------------------ ----------------------------------------------------------------------------- PAR ($) Repurchase agreement with State Street Bank & Trust Co., dated 01/31/05, due 02/01/05 at 2.360%, collateralized by a U.S. Treasury Note maturing 06/30/05, market value of $7,090,406 (repurchase proceeds $6,947,455) 6,947,000 6,947,000 TOTAL SHORT-TERM OBLIGATION (COST OF $6,947,000) 6,947,000 TOTAL INVESTMENTS - 100.1% (COST OF $1,570,419,257) (b) 1,908,129,957 OTHER ASSETS & LIABILITIES, NET - (0.1)% (1,435,647) NET ASSETS - 100.0% 1,906,694,310 See Accompanying Notes to Financial Statements.
11 - -------------------------------------------------------------------------------- JANUARY 31, 2005 (UNAUDITED) COLUMBIA GROWTH & INCOME FUND NOTES TO INVESTMENT PORTFOLIO: (a) Non-income producing security. (b) Cost for federal income tax purposes is $1,570,419,257. ACRONYM NAME ------- ---- ADR American Depositary Receipt REIT Real Estate Investment Trust At January 31, 2005, the Fund held investments in the following sectors: SECTOR % OF NET ASSETS ------ --------------- Financials 31.3% Energy 13.6 Industrials 11.9 Consumer Staples 10.4 Consumer Discretionary 8.5 Information Technology 5.6 Utilities 4.9 Telecommunication Services 4.4 Health Care 4.2 Materials 3.7 Investment Company 1.2 Short-Term Obligation 0.4 Other Assets & Liabilities, Net (0.1) ----- 100.0% ===== See Accompanying Notes to Financial Statements. 12 STATEMENT OF ASSETS AND LIABILITIES -------------------------------------------- JANUARY 31, 2005 (UNAUDITED) COLUMBIA GROWTH & INCOME FUND
($) - ------------------------------------------ ----------------------------------------------------------------------------- ASSETS Investments, at cost 1,570,419,257 ------------- Investments, at value 1,908,129,957 Cash 98 Receivable for: Investments sold 173,043 Fund shares sold 1,483,681 Interest 455 Dividends 2,386,863 Deferred Trustees' compensation plan 53,138 ------------- Total Assets 1,912,227,235 ----------------------------------------------------------------------------- LIABILITIES Payable for: Fund shares repurchased 2,698,989 Investment advisory fee 1,139,086 Transfer agent fee 739,012 Pricing and bookkeeping fees 40,530 Custody fee 13,014 Distribution and service fees 778,355 Deferred Trustees' fees 53,138 Other liabilities 70,801 ------------- Total Liabilities 5,532,925 NET ASSETS 1,906,694,310 ----------------------------------------------------------------------------- COMPOSITION OF NET ASSETS Paid-in capital 1,791,162,364 Undistributed net investment income 686,152 Accumulated net realized loss (222,864,906) Net unrealized appreciation on investments 337,710,700 NET ASSETS 1,906,694,310 ----------------------------------------------------------------------------- CLASS A Net assets 600,195,482 Shares outstanding 33,633,115 Net asset value per share 17.85(a) Maximum offering price per share ($17.85/0.9425) 18.94(b) ----------------------------------------------------------------------------- CLASS B Net assets 709,077,730 Shares outstanding 42,278,516 Net asset value and offering price per share 16.77(a) ----------------------------------------------------------------------------- CLASS C Net assets 83,849,490 Shares outstanding 4,964,390 Net asset value and offering price per share 16.89(a) ----------------------------------------------------------------------------- CLASS Z Net assets 513,571,608 Shares outstanding 28,771,987 Net asset value, offering and redemption price per share 17.85
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. (b) On sales of $50,000 or more the offering price is reduced. See Accompanying Notes to Financial Statements. 13 STATEMENT OF OPERATIONS -------------------------------------------------------- FOR THE SIX MONTHS ENDED JANUARY 31, 2005 (UNAUDITED) COLUMBIA GROWTH & INCOME FUND
($) - ------------------------------------------ ----------------------------------------------------------------------------- INVESTMENT INCOME Dividends 22,877,722 Interest 46,622 ------------ Total Investment Income (net of foreign taxes withheld of $83,114) 22,924,344 ----------------------------------------------------------------------------- EXPENSES Investment advisory fee 6,772,235 Distribution fee: Class B 2,715,392 Class C 341,089 Service fee: Class A 767,188 Class B 905,131 Class C 113,696 Transfer agent fee 2,119,162 Pricing and bookkeeping fees 238,334 Trustees' fees 20,396 Custody fee 30,845 Non-recurring costs (See Note 7) 14,696 Other expenses 229,008 ------------ Total Expenses 14,267,172 Non-recurring costs assumed by Investment Advisor (See Note 7) (14,696) Custody earnings credit (73) ------------ Net Expenses 14,252,403 ------------ Net Investment Income 8,671,941 ----------------------------------------------------------------------------- NET REALIZED AND UNREALIZED Net realized gain on investments 82,883,534 GAIN (LOSS) ON INVESTMENTS Net change in unrealized appreciation (depreciation) on investments 70,382,300 ------------ Net Gain 153,265,834 ------------ Net Increase in Net Assets from Operations 161,937,775
See Accompanying Notes to Financial Statements. 14 STATEMENT OF CHANGES IN NET ASSETS --------------------------------------------- COLUMBIA GROWTH & INCOME FUND
(UNAUDITED) SIX MONTHS ENDED YEAR ENDED JANUARY 31, JULY 31, INCREASE (DECREASE) IN NET ASSETS: 2005 ($) 2004 ($) - ------------------------------------------ -------------------------------------------------------------------------------- OPERATIONS Net investment income 8,671,941 16,388,137 Net realized gain on investments 82,883,534 48,265,445 Net change in unrealized appreciation (depreciation) on investments 70,382,300 182,278,097 ------------------------------ Net Increase from Operations 161,937,775 246,931,679 -------------------------------------------------------------------------------- DISTRIBUTIONS DECLARED TO SHAREHOLDERS From net investment income: Class A (7,394,678) (5,897,569) Class B (4,128,268) (1,496,752) Class C (487,830) (222,462) Class Z (7,337,049) (4,825,957) ------------------------------ Total Distributions Declared to Shareholders (19,347,825) (12,442,740) -------------------------------------------------------------------------------- SHARE TRANSACTIONS Class A: Subscriptions 32,937,616 110,785,469 Distributions reinvested 6,683,251 5,352,979 Redemptions (105,380,567) (202,240,844) ------------------------------ Net Decrease (65,759,700) (86,102,396) Class B: Subscriptions 16,629,674 63,411,224 Distributions reinvested 3,773,230 1,357,040 Redemptions (84,307,646) (183,048,069) ------------------------------ Net Decrease (63,904,742) (118,279,805) Class C: Subscriptions 2,462,057 12,823,341 Distributions reinvested 436,671 202,402 Redemptions (23,239,936) (43,080,290) ------------------------------ Net Decrease (20,341,208) (30,054,547) Class Z: Subscriptions 57,971,834 136,454,093 Distributions reinvested 6,140,643 4,266,571 Redemptions (58,295,400) (104,262,595) ------------------------------ Net Increase 5,817,077 36,458,069 Net Decrease from Share Transactions (144,188,573) (197,978,679) Total Increase (Decrease) in Net Assets (1,598,623) 36,510,260 -------------------------------------------------------------------------------- NET ASSETS Beginning of period 1,908,292,933 1,871,782,673 End of period (including undistributed net investment income of $686,152 and $11,362,036, respectively) 1,906,694,310 1,908,292,933
See Accompanying Notes to Financial Statements. 15 - -------------------------------------------------------------------------------- COLUMBIA GROWTH & INCOME FUND
(UNAUDITED) SIX MONTHS ENDED YEAR ENDED JANUARY 31, JULY 31, 2005 2004 - ------------------------------------------ -------------------------------------------------------------------------------- CHANGES IN SHARES Class A: Subscriptions 1,893,144 6,980,307 Issued for distributions reinvested 372,117 342,763 Redemptions (6,116,123) (12,621,689) ------------------------------ Net Decrease (3,850,862) (5,298,619) Class B: Subscriptions 1,018,410 4,264,505 Issued for distributions reinvested 223,268 92,195 Redemptions (5,182,838) (12,190,707) ------------------------------ Net Decrease (3,941,160) (7,834,007) Class C: Subscriptions 150,589 861,203 Issued for distributions reinvested 25,672 13,657 Redemptions (1,426,598) (2,839,364) ------------------------------ Net Decrease (1,250,337) (1,964,504) Class Z: Subscriptions 3,335,314 8,517,555 Issued for distributions reinvested 341,906 273,149 Redemptions (3,337,849) (6,498,126) ------------------------------ Net Increase 339,371 2,292,578
See Accompanying Notes to Financial Statements. 16 NOTES TO FINANCIAL STATEMENTS -------------------------------------------------- JANUARY 31, 2005 (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. Effective February 10, 2004, the Board of Trustees approved the commencement of Class R shares of the Fund which had not commenced operations as of January 31, 2005. 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. 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 and certain investment companies are valued at the last sale price on the principal exchange on which they trade, except for securities traded on the NASDAQ, which are valued at the NASDAQ official close price. 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 debt obligations maturing within 60 days are valued at amortized cost, which approximates market value. Investments for which market quotations are not readily available, or have quotations which management believes are not appropriate, 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. 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. 17 - -------------------------------------------------------------------------------- JANUARY 31, 2005 (UNAUDITED) COLUMBIA GROWTH & INCOME FUND INCOME RECOGNITION Interest income is recorded on the accrual basis. Corporate actions and dividend income are recorded on 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. The Fund estimates components of distributions from real estate investment trusts (REITs). Distributions received in excess of income are recorded as a reduction of the cost of the related investments. If the Fund no longer owns the applicable securities, any distributions received in excess of income 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, the Fund intends to distribute in each calendar year substantially all of its net investment income, capital gains and certain other amounts, if any, such that the Fund should 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 the ex-date. Net realized capital gains, if any, are distributed at least annually. NOTE 3. FEDERAL TAX INFORMATION The tax character of distributions paid during the year ended July 31, 2004 was as follows: DISTRIBUTIONS PAID FROM: - ---------------------------------------------------------------- ORDINARY INCOME $12,442,740 LONG-TERM CAPITAL GAINS -- Unrealized appreciation and depreciation at January 31, 2005, based on cost of investments for federal income tax purposes was: UNREALIZED APPRECIATION $373,510,001 UNREALIZED DEPRECIATION (35,799,301) - ---------------------------------------------------------------- NET UNREALIZED APPRECIATION $337,710,700 The following capital loss carryforwards, determined as of July 31, 2004, may be 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 $193,404,812 2011 112,261,432 - ---------------------------------------------------------------- $305,666,244 NOTE 4. FEES AND COMPENSATION PAID TO AFFILIATES INVESTMENT ADVISORY FEE Columbia Management Advisors, Inc. ("Columbia"), an indirect wholly owned subsidiary of Bank of America Corporation ("BOA"), is the investment advisor to the Fund and provides administrative and other services to the Fund. 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 ANNUAL FEE RATE - ---------------------------------------------------------------- FIRST $500 MILLION 0.77% - ---------------------------------------------------------------- NEXT $500 MILLION 0.72% - ---------------------------------------------------------------- $1 BILLION TO $6 BILLION 0.60% - ---------------------------------------------------------------- OVER $6 BILLION 0.58% 18 - -------------------------------------------------------------------------------- JANUARY 31, 2005 (UNAUDITED) COLUMBIA GROWTH & INCOME FUND Prior to November 1, 2004, Columbia received a monthly investment advisory fee based on the Fund's average daily net assets at the following annual rates: AVERAGE DAILY NET ASSETS ANNUAL FEE RATE - ---------------------------------------------------------------- FIRST $1 BILLION 0.80% - ---------------------------------------------------------------- OVER $1 BILLION 0.60% For the six months ended January 31, 2005, the Fund's annualized effective investment advisory fee rate was 0.70%. 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"). As a result, Columbia pays the total fees received 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 based on the number of securities held by the Fund. For the six months ended January 31, 2005, the annualized effective pricing and bookkeeping fee rate for the Fund, inclusive of out-of-pocket expenses, was 0.025%. TRANSFER AGENT FEE Columbia Funds Services, Inc. (the "Transfer Agent"), an affiliate of Columbia, provides shareholder services to the Fund and has subcontracted with Boston Financial Data Services ("BFDS") to serve as sub-transfer agent. 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. For the six months ended January 31, 2005, the Fund's annualized effective transfer agent fee rate, inclusive of out-of-pocket expenses, was 0.22%. UNDERWRITING DISCOUNTS, SERVICE AND DISTRIBUTION FEES Columbia Funds Distributor, Inc. (the "Distributor"), an affiliate of Columbia, is the principal underwriter of the Fund. For the six months ended January 31, 2005, the Distributor has retained net underwriting discounts of $32,623 on sales of the Fund's Class A shares and received CDSC fees of $4,054, $864,713 and $20,844 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. These credits are recorded as a reduction of total expenses on the Statement of Operations. 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 With the exception of one officer, all officers of the Fund are employees of Columbia or its affiliates and receive no compensation from the Fund. Effective August 23, 2004, the Board of Trustees appointed a Chief Compliance Officer to the Fund in accordance with federal securities regulations. The Fund, along with other affiliated funds, will pay its pro-rata share of the expenses associated with the Office of the Chief Compliance Officer. The Fund's fee will not exceed $15,000 per year. 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. 19 - -------------------------------------------------------------------------------- JANUARY 31, 2005 (UNAUDITED) COLUMBIA GROWTH & INCOME FUND OTHER Columbia provides certain services to the Fund related to Sarbanes-Oxley compliance. For the six months ended January 31, 2005, the Fund paid $1,288 to Columbia for such services. This amount is included in "Other expenses" on the Statement of Operations. NOTE 5. PORTFOLIO INFORMATION For the six months ended January 31, 2005, the cost of purchases and proceeds from sales of securities, excluding short-term obligations, were $337,965,523 and $489,537,244, respectively. NOTE 6. LINE OF CREDIT The Fund and other affiliated funds participate in a $350,000,000 committed unsecured revolving line of credit provided by State Street Bank and Trust Company. Borrowings are used for temporary or emergency purposes to facilitate portfolio liquidity. Interest is charged to each participating fund based on its borrowings at a rate per annum equal to the Federal Funds rate plus 0.50%. In addition, a commitment fee of 0.10% per annum is accrued and apportioned among the participating funds based on their 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, 2005, the Fund did not borrow under this arrangement. NOTE 7. 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 On February 9, 2005, Columbia and the Distributor (collectively the "Columbia Group") entered into an Assurance of Discontinuance with the New York Attorney General ("NYAG") (the "NYAG Settlement") and consented to the entry of a cease-and-desist order by the Securities and Exchange Commission ("SEC") (the "SEC Order"). The SEC Order and the NYAG Settlement are referred to collectively as the "Settlements". The Settlements contain substantially the same terms and conditions as outlined in the agreements in principle which Columbia Group entered into with the SEC and NYAG in March 2004. Under the terms of the SEC Order, the Columbia Group has agreed, among other things, to: pay $70 million in disgorgement and $70 million in civil money penalties; cease and desist from violations of the antifraud provisions and certain other provisions of the federal securities laws; maintain certain compliance and ethics oversight structures; retain an independent consultant to review the Columbia Group's applicable supervisory, compliance, control and other policies and procedures; and retain an independent distribution consultant (see below). The Columbia Funds have also voluntarily undertaken to implement certain governance measures designed to maintain the independence of their boards of trustees. The NYAG Settlement also, among other things, requires Columbia and its affiliates, Banc of America Capital Management, LLC and BACAP Distributors, Columbia High Yield Municipal Fund LLC to reduce certain Columbia Funds, Nations Funds and other mutual fund management fees collectively by $32 million per year for five years, for a projected total of $160 million in management fee reductions. Pursuant to the procedures set forth in the SEC Order, the $140 million in settlement amounts described above will be distributed in accordance with a distribution plan to be developed by an independent distribution consultant, who is acceptable to the SEC staff and the Columbia Funds' independent trustees. The distribution plan must be based on a methodology developed in consultation with the Columbia Group and the Fund's independent trustees and not unacceptable to the staff of the SEC. 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. A copy of the SEC Order is available on the SEC website at http://www.sec.gov. A copy of the NYAG Settlement is available as part of the Bank of America Corporation Form 8-K filing on February 10, 2005. In connection with the events described in detail above, various parties have filed suit against certain 20 - -------------------------------------------------------------------------------- JANUARY 31, 2005 (UNAUDITED) COLUMBIA GROWTH & INCOME FUND funds, their Boards and/or Bank of America (and affiliated entities). More than 300 cases (including those filed against entities unaffiliated with the funds, their Boards and/or FleetBoston and its affiliated entities) have been consolidated in a multi-district proceeding and transferred to the Federal District Court in Maryland. Recently, certain Columbia funds and affiliated entities have been named as defendants in several direct and derivative actions under various sections of the Investment Company Act of 1940, as amended, alleging, among other things, that the fees and expenses paid by those funds are excessive. On January 11, 2005 a putative class action lawsuit was filed in federal district court in Massachusetts against, among others, the Trustees of the Fund and Columbia. The lawsuit alleges that defendants violated common law duties to fund shareholders as well as sections of the Investment Company Act of 1940, by failing to ensure that the Fund and other affiliated funds participated in securities class action settlements for which the funds were eligible. Specifically, plaintiffs allege that defendants failed to submit proof of claims in connection with settlements of securities class action lawsuits filed against companies in which the funds held positions. The funds and the other defendants to these actions, including Columbia and various of its affiliates, certain other mutual funds advised by Columbia and its affiliates, and various directors of such funds, have denied these allegations and are contesting the plaintiffs' claims. These proceedings are ongoing, however, based on currently available information, Columbia believes that these lawsuits are without merit, that the likelihood they will have a material adverse impact on any fund is remote, and that the lawsuits are not likely to materially affect its ability to provide investment management services to its clients, including the funds. For the year ended January 31, 2005, Columbia has assumed $14,696 of legal, consulting services and Trustees' fees incurred by the Fund in connection with these matters. 21 FINANCIAL HIGHLIGHTS ----------------------------------------------------------- COLUMBIA GROWTH & INCOME FUND SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED) SIX MONTHS YEAR PERIOD ENDED ENDED ENDED YEAR ENDED JUNE 30, JANUARY 31, JULY 31, JULY 31, -------------------------------------------------------- CLASS A SHARES 2005 2004 2003 (a) 2003 2002 2001 2000 ==================================================================================================================================== NET ASSET VALUE, BEGINNING OF PERIOD $ 16.57 $ 14.69 $ 14.75 $ 15.67 $ 18.98 $ 20.60 $ 21.84 - ------------------------------------------------------------------------------------------------------------------------------------ INCOME FROM INVESTMENT OPERATIONS: Net investment income (b) 0.10 0.18 0.02 0.11 0.11 0.12 0.01 Net realized and unrealized gain (loss) on investments 1.40 1.84 (0.08) (0.72) (1.89) 2.59 0.25 ------------ ------------ ---------------- ------------- ------------ ------------ ------------ Total from Investment Operations 1.50 2.02 (0.06) (0.61) (1.78) 2.71 0.26 - ------------------------------------------------------------------------------------------------------------------------------------ LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS: From net investment income (0.22) (0.14) -- (0.06) (0.10) -- -- From net realized gains -- -- -- (0.25) (1.43) (4.33) (1.50) ------------ ------------ ---------------- ------------- ------------ ------------ ------------ Total Distributions Declared to Shareholders (0.22) (0.14) -- (0.31) (1.53) (4.33) (1.50) - ------------------------------------------------------------------------------------------------------------------------------------ NET ASSET VALUE, END OF PERIOD $ 17.85 $ 16.57 $ 14.69 $ 14.75 $ 15.67 $ 18.98 $ 20.60 Total return (c) 9.03%(d) 13.83%(e) (0.41)%(d)(e) (3.75)%(e) (10.24)%(e) 13.34%(e) 1.43%(e) - ------------------------------------------------------------------------------------------------------------------------------------ RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA: Expenses (f) 1.23%(g) 1.21% 1.36%(g) 1.40% 1.31% 1.32% 1.35% Net investment income (f) 1.15%(g) 1.11% 1.93%(g) 0.83% 0.60% 0.62% 0.06% Waiver/reimbursement -- 0.01% 0.05%(g) 0.04% 0.05% 0.03% 0.10% Portfolio turnover rate 18%(d) 52% 6%(d) 63% 47% 104% 81% Net assets, end of period (000's) $600,195 $621,243 $628,680 $635,415 $761,122 $503,647 $309,129 - ------------------------------------------------------------------------------------------------------------------------------------
(a) The Fund 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. 22 - -------------------------------------------------------------------------------- COLUMBIA GROWTH & INCOME FUND SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED) SIX MONTHS YEAR PERIOD ENDED ENDED ENDED YEAR ENDED JUNE 30, JANUARY 31, JULY 31, JULY 31, ------------------------------------------------------- CLASS B SHARES 2005 2004 2003 (a) 2003 2002 2001 2000 ==================================================================================================================================== NET ASSET VALUE, BEGINNING OF PERIOD $ 15.53 $ 13.78 $ 13.84 $ 14.77 $ 18.01 $ 19.88 $ 21.29 - ------------------------------------------------------------------------------------------------------------------------------------ INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss) (b) 0.03 0.05 0.01 0.01 (0.03) (0.03) (0.14) Net realized and unrealized gain (loss) on investments 1.31 1.73 (0.07) (0.69) (1.77) 2.49 0.23 ------------ ------------ ---------------- ------------- ------------ ------------ ------------ Total from Investment Operations 1.34 1.78 (0.06) (0.68) (1.80) 2.46 0.09 - ------------------------------------------------------------------------------------------------------------------------------------ LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS: From net investment income (0.10) (0.03) -- -- (0.01) -- -- From net realized gains -- -- -- (0.25) (1.43) (4.33) (1.50) ------------ ------------ ---------------- ------------- ------------ ------------ ------------ Total Distributions Declared to Shareholders (0.10) (0.03) -- (0.25) (1.44) (4.33) (1.50) - ------------------------------------------------------------------------------------------------------------------------------------ NET ASSET VALUE, END OF PERIOD $ 16.77 $ 15.53 $ 13.78 $ 13.84 $ 14.77 $ 18.01 $ 19.88 Total return (c) 8.59%(d) 12.92%(e) (0.43)%(d)(e) (4.50)%(e) (10.89)%(e) 12.46%(e) 0.64%(e) - ------------------------------------------------------------------------------------------------------------------------------------ RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA: Expenses (f) 1.98%(g) 1.96% 2.11%(g) 2.15% 2.06% 2.07% 2.10% Net investment income (loss) (f) 0.40%(g) 0.36% 1.18%(g) 0.07% (0.15)% (0.13)% (0.69)% Waiver/reimbursement -- 0.01% 0.05%(g) 0.04% 0.05% 0.03% 0.10% Portfolio turnover rate 18%(d) 52% 6%(d) 63% 47% 104% 81% Net assets, end of period (000's) $709,078 $718,022 $745,122 $752,605 $895,904 $883,754 $822,017 - ------------------------------------------------------------------------------------------------------------------------------------
(a) The Fund 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. 23 - -------------------------------------------------------------------------------- COLUMBIA GROWTH & INCOME FUND SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED) SIX MONTHS YEAR PERIOD ENDED ENDED ENDED YEAR ENDED JUNE 30, JANUARY 31, JULY 31, JULY 31, ------------------------------------------------------- CLASS C SHARES 2005 2004 2003 (a) 2003 2002 2001 2000 ==================================================================================================================================== NET ASSET VALUE, BEGINNING OF PERIOD $ 15.64 $ 13.88 $ 13.94 $ 14.87 $ 18.12 $ 19.99 $ 21.39 - ------------------------------------------------------------------------------------------------------------------------------------ INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss) (b) 0.03 0.05 0.01 0.01 (0.03) (0.02) (0.14) Net realized and unrealized gain (loss) on investments 1.32 1.74 (0.07) (0.69) (1.78) 2.48 0.24 ------------ ------------ ---------------- ------------- ------------ ------------ ------------ Total from Investment Operations 1.35 1.79 (0.06) (0.68) (1.81) 2.46 0.10 - ------------------------------------------------------------------------------------------------------------------------------------ LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS: From net investment income (0.10) (0.03) -- -- (0.01) -- -- From net realized gains -- -- -- (0.25) (1.43) (4.33) (1.50) ------------ ------------ ---------------- ------------- ------------ ------------ ------------ Total Distributions Declared to Shareholders (0.10) (0.03) -- (0.25) (1.44) (4.33) (1.50) - ------------------------------------------------------------------------------------------------------------------------------------ NET ASSET VALUE, END OF PERIOD $ 16.89 $ 15.64 $ 13.88 $ 13.94 $ 14.87 $ 18.12 $ 19.99 Total return (c) 8.60%(d) 12.90%(e) (0.43)%(d)(e) (4.47)%(e) (10.88)%(e) 12.38%(e) 0.68%(e) - ------------------------------------------------------------------------------------------------------------------------------------ RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA: Expenses (f) 1.98%(g) 1.96% 2.11%(g) 2.15% 2.06% 2.06% 2.10% Net investment income (loss) (f) 0.40%(g) 0.36% 1.19%(g) 0.08% (0.15)% (0.13)% (0.69)% Waiver/reimbursement -- 0.01% 0.05%(g) 0.04% 0.05% 0.03% 0.10% Portfolio turnover rate 18%(d) 52% 6%(d) 63% 47% 104% 81% Net assets, end of period (000's) $83,849 $97,226 $113,542 $115,314 $129,661 $77,565 $29,303 - ------------------------------------------------------------------------------------------------------------------------------------
(a) The Fund 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. 24 - -------------------------------------------------------------------------------- COLUMBIA GROWTH & INCOME FUND SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED) SIX MONTHS YEAR PERIOD PERIOD ENDED ENDED ENDED YEAR ENDED JUNE 30, ENDED JANUARY 31, JULY 31, JULY 31, ----------------------------- JUNE 30, CLASS Z SHARES 2005 2004 2003 (a) 2003 (b) 2002 2001 (c) ==================================================================================================================================== NET ASSET VALUE, BEGINNING OF PERIOD $ 16.59 $ 14.71 $ 14.76 $ 15.68 $ 19.00 $ 19.64 - ------------------------------------------------------------------------------------------------------------------------------------ INCOME FROM INVESTMENT OPERATIONS: Net investment income (d) 0.12 0.22 0.03 0.16 0.16 0.06 Net realized and unrealized gain (loss) on investments 1.40 1.84 (0.08) (0.74) (1.88) (0.70) ------------ ------------ ---------------- ------------- ------------- ---------------- Total from Investment Operations 1.52 2.06 (0.05) (0.58) (1.72) (0.64) - ------------------------------------------------------------------------------------------------------------------------------------ LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS: From net investment income (0.26) (0.18) -- (0.09) (0.17) -- From net realized gains -- -- -- (0.25) (1.43) -- ------------ ------------ ---------------- ------------- ------------- ---------------- Total Distributions Declared to Shareholders (0.26) (0.18) -- (0.34) (1.60) -- - ------------------------------------------------------------------------------------------------------------------------------------ NET ASSET VALUE, END OF PERIOD $ 17.85 $ 16.59 $ 14.71 $ 14.76 $ 15.68 $ 19.00 Total return (e) 9.15%(f) 14.08%(g) (0.34)%(f)(g) (3.52)%(g) (9.94)%(g) (3.26)%(f)(g) - ------------------------------------------------------------------------------------------------------------------------------------ RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA: Expenses (h) 0.98%(i) 0.96% 1.11%(i) 1.15% 1.06% 1.08%(i) Net investment income (h) 1.40%(i) 1.38% 2.18%(i) 1.13% 0.85% 0.86%(i) Waiver/reimbursement -- 0.01% 0.05%(i) 0.04% 0.05% 0.03%(i) Portfolio turnover rate 18%(f) 52% 6%(f) 63% 47% 104% Net assets, end of period (000's) $513,572 $471,803 $384,438 $383,150 $200,908 $264,425 - ------------------------------------------------------------------------------------------------------------------------------------
(a) The Fund 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. 25 COLUMBIA FUNDS ----------------------------------------------------------------- COLUMBIA GROWTH & INCOME FUND -------------------------------------------------- LARGE GROWTH Columbia Growth Stock Columbia Large Cap Growth Columbia Tax-Managed Growth Columbia Tax-Managed Growth II* Columbia Young Investor -------------------------------------------------- LARGE VALUE Columbia Disciplined Value Columbia Growth & Income Columbia Large Cap Core Columbia Tax-Managed Value* -------------------------------------------------- MIDCAP GROWTH Columbia Acorn Select Columbia Mid Cap Growth Columbia Tax-Managed Aggressive Growth -------------------------------------------------- MIDCAP VALUE Columbia Dividend Income Columbia Mid Cap Value* Columbia Strategic Investor -------------------------------------------------- SMALL GROWTH Columbia Acorn Columbia Acorn USA Columbia Small Company Equity -------------------------------------------------- SMALL VALUE Columbia Small Cap Columbia Small Cap Value -------------------------------------------------- BALANCED Columbia Asset Allocation Columbia Balanced Columbia Liberty Fund -------------------------------------------------- SPECIALTY Columbia Real Estate Equity Columbia Technology Columbia Utilities -------------------------------------------------- TAXABLE FIXED-INCOME Columbia Corporate Bond Columbia Federal Securities Columbia Fixed Income Securities Columbia High Yield Columbia High Yield Opportunities Columbia Income* Columbia Intermediate Bond Columbia Intermediate Government Income* Columbia Quality Plus Bond Columbia Short Term Bond* Columbia Strategic Income -------------------------------------------------- FLOATING RATE Columbia Floating Rate Columbia Floating Rate Advantage -------------------------------------------------- TAX EXEMPT Columbia High Yield Municipal Columbia Intermediate Tax-Exempt Bond Columbia Managed Municipals* Columbia National Municipal Bond** Columbia Tax-Exempt Columbia Tax-Exempt Insured 26 - -------------------------------------------------------------------------------- COLUMBIA GROWTH & INCOME FUND -------------------------------------------------- SINGLE STATE TAX EXEMPT Columbia California Tax-Exempt Columbia Connecticut Intermediate Municipal Bond Columbia Connecticut Tax-Exempt Columbia Florida Intermediate Municipal Bond* Columbia Massachusetts Intermediate Municipal Bond Columbia Massachusetts Tax-Exempt Columbia New Jersey Intermediate Municipal Bond Columbia New York Intermediate Municipal Bond Columbia New York Tax-Exempt Columbia Oregon Municipal Bond Columbia Pennsylvania Intermediate Municipal Bond* Columbia Rhode Island Intermediate Municipal Bond -------------------------------------------------- MONEY MARKET Columbia Money Market Columbia Municipal Money Market -------------------------------------------------- INTERNATIONAL/GLOBAL Columbia Acorn International Columbia Acorn International Select Columbia Global Equity Columbia International Stock Columbia Newport Greater China Columbia Newport Tiger* -------------------------------------------------- INDEX Columbia Large Company Index* Columbia Small Company Index* Columbia U.S. Treasury Index* * The fund will be closed to new investments after the close of business on April 29, 2005. The fund's trustees have approved the merger, which is scheduled to occur during September and October, pending shareholder approval ** The fund will be closed to new investments after the close of business on April 29, 2005. The fund's trustees have approved the liquidation, which is scheduled to occur during September, pending shareholder approval Please consider the investment objectives, risks, charges and expenses of a mutual fund carefully before investing. Contact us at 800-345-6611 for a prospectus which contains this and other important information about the fund. Read it carefully before you invest. For complete product information on any Columbia fund, visit our website at www.columbiafunds.com. Columbia Management Group and Columbia Management refer collectively to the various investment advisory subsidiaries of Columbia Management Group, including Columbia Management Advisors, Inc., the registered investment advisor, and Columbia Funds Distributor, Inc. 27 This page intentionally left blank. 28 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 02110 INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM PricewaterhouseCoopers LLP 125 High Street Boston MA 02110 The funds mail 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 funds 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 and a copy of the fund's voting record are available (i) at www.columbiamanagement.com; (ii) on the Securities and Exchange Commission's website at www.sec.gov, and (iii) without charge, upon request, by calling 800-368-0346. Information regarding how the fund voted proxies relating to portfolio securities during the 12-month period ended June 30, 2004 is available from the SEC's website. Information regarding how the fund voted proxies relating to portfolio securities is also available from the fund's website. The fund files a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund's Form N-Q is available on the SEC's website at www.sec.gov and may be reviewed and copied at the SEC's Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. 29 [eDELIVERY LOGO] 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, 2005 --------------- PRSRT STD U.S. POSTAGE PAID HOLLISTON, MA PERMIT NO. 20 --------------- COLUMBIA MANAGEMENT(R) (C)2005 Columbia Funds Distributor, Inc. One Financial Center, Boston, MA 02111-2621 800.345.6611 www.columbiafunds.com 779-03/437U-0205 (03/05) 4639 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. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable. ITEM 6. SCHEDULE OF INVESTMENTS The registrant's "Schedule I - Investments in securities of unaffiliated issuers" (as set forth in 17 CFR 210.12-12) is included in Item 1 of this Form N-CSR. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable. ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable. ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. Not applicable. ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. There have not been any material changes to the procedures by which shareholders may recommend nominees to the registrant's board of directors, since those procedures were last disclosed in response to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14A or this Item. ITEM 11. CONTROLS AND PROCEDURES. (a) The registrant's principal executive officer and principal financial officers, based on their evaluation of the registrant's disclosure controls and procedures as of a date within 90 days of the filing of this report, have 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 second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 12. 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/ Christopher L. Wilson ---------------------------------------------------- Christopher L. Wilson, President Date March 30, 2005 ------------------------------------------------------------------------ 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/ Christopher L. Wilson ---------------------------------------------------- Christopher L. Wilson, President Date March 30, 2005 ------------------------------------------------------------------------ By (Signature and Title) /S/ J. Kevin Connaughton ---------------------------------------------------- J. Kevin Connaughton, Treasurer Date March 30, 2005 ------------------------------------------------------------------------ EX-99.CERT 2 file002.txt CERTIFICATIONS I, Christopher L. Wilson, 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 second fiscal quarter of the period covered by this 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: March 30, 2005 /S/ Christopher L. Wilson ------------------------------- Christopher L. Wilson, President 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 second fiscal quarter of the period covered by this 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: March 30, 2005 /S/ J. Kevin Connaughton ---------------------------------- J. Kevin Connaughton, Treasurer EX-99.906CERT 3 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, 2005, 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: March 30, 2005 /S/ Christopher L. Wilson ---------------------------------- Christopher L. Wilson, President Date: March 30, 2005 /S/ J. Kevin Connaughton ---------------------------------- J. Kevin Connaughton, 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-----