-----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, NPSxCxx+ZbCS7QtuZDlSblqpWQUgVClMZibvUQTX8TM84QkPPEgFyT1+MDm/GViI k5oXMfkeeVNe6azAhQXrfQ== 0000891804-05-003020.txt : 20051007 0000891804-05-003020.hdr.sgml : 20051007 20051007124958 ACCESSION NUMBER: 0000891804-05-003020 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20050731 FILED AS OF DATE: 20051007 DATE AS OF CHANGE: 20051007 EFFECTIVENESS DATE: 20051007 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-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-06529 FILM NUMBER: 051128990 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-CSR 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: 1-617-426-3698 --------------- Date of fiscal year end: 07/31/05 -------------- Date of reporting period: 07/31/05 ------------- 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. ss. 3507. ITEM 1. REPORTS TO STOCKHOLDERS. photo:man and woman COLUMBIA GROWTH & INCOME FUND Annual Report July 31, 2005 PRESIDENT'S MESSAGE Columbia Growth & Income Fund sidebar Table of Contents Fund Profile ...............................1 Performance Information ....................2 Understanding Your Expenses ................3 Economic Update ............................4 Portfolio Managers' Report .................5 Investment Portfolio .......................7 Statement of Assets and Liabilities .......12 Statement of Operations ...................13 Statement of Changes in Net Assets ........14 Notes to Financial Statements .............16 Financial Highlights ......................22 Report of Independent Registered Public Accounting Firm .................26 Unaudited Information .....................27 Trustees ..................................28 Officers ..................................30 Columbia Funds ............................31 Important Information About This Report .........................33 The views expressed in the President's Message and Portfolio Managers' Report reflect the current views of the respective parties. These views are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict so actual outcomes and results may differ significantly from the views expressed. These views are subject to change at any time based upon economic, market or other conditions and the respective parties disclaim any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Columbia Fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any particular Columbia Fund. References to specific company securities should not be construed as a recommendation or investment advice. logo: Not FDIC Insured o May Lose Value o No Bank Guarantee end sidebar DEAR SHAREHOLDER: photo: Christopher L. Wilson Columbia Management, the asset management division of Bank of America, is in the final stages of a significant business integration effort. Over the last year, we have been integrating various components of the Nations Funds, Galaxy Funds and Columbia Funds, which will result in a single fund family that covers a wide range of markets, sectors and asset classes. Our team of talented, seasoned investment professionals will continue to strive to achieve strong results within their investment categories. Our objective is not only to provide our shareholders with the best products but also to enhance the breadth and availability of our services. Given our ability to now leverage the size and scale of the Columbia Management business, I am pleased that these efforts will also result in substantial cost savings to the funds. Our goal is to create a more simplified, clearly delineated product line. Through thoughtful project planning and execution, we will initially reduce the number of retail mutual funds from over 140 to fewer than 90. Earlier this year several fund mergers and liquidations were successfully completed. As we work to complete the remaining product and service provider consolidations in the coming months, we remain committed to building a mutual fund business that meets, and hopefully exceeds, your desire for personal financial solutions. We will continue to strive for the highest standards of performance and service excellence. The asset management business is in a time of transformation and we are committed to being progressive and innovative in our approach to the business. We value the confidence you have placed in us to assist you in managing your funds during these changing times. As with all businesses within Bank of America, we understand that your trust must be continuously earned and will remain focused on producing results for you. 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 encourage you to read the manager reports carefully and discuss any questions you have with your financial advisor. As always, we thank you for choosing Columbia Management. We look forward to helping you keep your long-term financial goals on target in the years to come. Sincerely, /s/ Christopher L. Wilson Christopher L. 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, i ncluding treasury, investment accounting and shareholder and broker services. Chris serves as President of Columbia Funds, President &CEO of Nations Funds and President of Galaxy Funds. 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 07/31/05 (%) Financials 31.0 Energy 14.5 Industrials 11.2 Consumer discretionary 7.9 Utilities 6.6 Top 10 holdings as of 07/31/05 (%) Exxon Mobil 4.5 Citigroup 2.4 Merrill Lynch 2.2 Wells Fargo 2.1 U.S. Bancorp 2.1 Wachovia 2.0 Altria Group 1.9 United Technologies 1.7 Exelon 1.7 Verizon Communications 1.6 Sector breakdowns 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. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. sidebar: 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. Summary o For the 12-month period ended July 31, 2005, the fund's class A shares returned 14.16% without sales charge. o The fund underperformed the Russell 1000 Value Index as well as the average return of its peer group, the Morningstar Large Value Category. o Strong returns from utility and consumer discretionary stocks helped the fund achieve a solid double-digit return. However, stock selection in the financials and technology sectors detracted from performance as did an underweight in technology. OBJECTIVE Seeks long-term growth and income TOTAL NET ASSETS $1,835.4 million artwork: 2 arrows up Class A shares: 14.16% Russell 1000 Value Index: 19.04% MANAGEMENT STYLE artwork: Equity Style: Value Size: Large end sidebar 1 PERFORMANCE INFORMATION Columbia Growth & Income Fund Growth of a $10,000 investment 08/01/95 - 07/31/05 mountain chart: Class A shares Class A shares without with Russell 1000 sales charge sales charge Value Index --------------- -------------- ------------ 08/1995 $10000 $ 9425 $10000 9942 9370 10141 10285 9694 10508 10219 9632 10404 10592 9983 10931 10532 9926 11205 10817 10195 11554 10991 10359 11642 10999 10367 11840 11403 10747 11885 11688 11016 12034 11511 10849 12043 10891 10265 11588 11233 10587 11920 11726 11052 12394 12028 11337 12874 12911 12169 13807 12604 11879 13630 13469 12694 14291 13494 12718 14501 13018 12269 13979 13806 13012 14566 14627 13786 15381 15209 14335 16041 16596 15642 17247 15972 15054 16633 16865 15895 17637 16059 15135 17145 16666 15708 17903 17038 16058 18426 17213 16223 18164 18464 17403 19387 19373 18259 20573 19363 18250 20711 18866 17781 20405 19569 18444 20666 19217 18112 20302 16110 15183 17281 16823 15856 18273 18211 17164 19689 19335 18223 20607 20454 19278 21307 20996 19789 21478 20119 18962 21175 20783 19588 21613 21354 20126 23632 21057 19847 23372 22304 21021 24050 21722 20473 23345 21476 20241 22479 20660 19472 21694 21528 20290 22944 21763 20511 22765 22788 21477 22874 21568 20328 22129 20734 19542 20485 23062 21736 22984 23062 21736 22717 22908 21590 22956 22621 21321 21906 22764 21455 22180 23608 22251 23414 23840 22469 23629 25058 23617 24210 25201 23752 23312 26489 24965 24480 26393 24876 24573 26137 24634 23890 25285 23831 23047 25786 24303 24176 26258 24748 24720 25635 24161 24171 26325 24811 24120 26135 24633 23153 25218 23768 21523 25178 23730 21338 26165 24660 22578 26345 24830 23111 25918 24428 22933 25594 24123 22969 26902 25355 24056 25832 24346 23231 25816 24332 23347 23012 21689 22007 21206 19987 19960 21382 20152 20112 18401 17343 17875 20017 18866 19200 21530 20292 20409 20617 19432 19524 19881 18738 19051 18756 17678 18543 18681 17607 18574 20002 18852 20209 21638 20394 21514 22149 20875 21783 22058 20789 22108 22417 21128 22452 21996 20731 22232 22761 21453 23593 22987 21665 23914 24561 23149 25387 24925 23492 25834 25608 24135 26387 25487 24022 26154 24881 23450 25516 24896 23464 25777 25578 24107 26385 25107 23663 26013 25396 23936 26382 25774 24292 26791 26017 24521 27236 27107 25548 28614 27866 26263 29573 27375 25801 29046 28265 26640 30008 27821 26221 29596 27423 25846 29067 27868 26265 29767 27976 26368 30092 07/2005 28668 27019 30961 The chart above shows the growth in value of a hypothetical $10,000 investment in Class A shares of Columbia Growth &Income Fund during the stated time period, and does 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, they do not incur fees or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index. Performance of a $10,000 investment 08/01/95 - 07/31/05 ($) sales charge without with Class A 28,668 27,019 Class B 26,593 26,593 Class C 26,559 26,559 Class Z 29,042 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.
AVERAGE ANNUAL TOTAL RETURN AS OF 07/31/05 (%) 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 -------------------------------------------------------------------------------------------------------------- 1-year 14.16 7.60 13.32 8.32 13.29 12.29 14.47 5-year 4.72 3.48 3.92 3.62 3.92 3.92 4.99 10-year 11.11 10.45 10.27 10.27 10.26 10.26 11.25 AVERAGE ANNUAL TOTAL RETURN AS OF 06/30/05 (%) Share class A B C Z Sales charge without with without with without with without -------------------------------------------------------------------------------------------------------------- 1-year 9.37 3.08 8.57 3.57 8.51 7.51 9.67 5-year 4.34 3.11 3.56 3.26 3.54 3.54 4.61 10-year 11.19 10.53 10.35 10.35 10.35 10.35 11.33
THE "WITH SALES CHARGE" RETURNS INCLUDE THE MAXIMUM INITIAL SALES CHARGE OF 5.75% FOR CLASS A SHARES AND 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. 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. All results shown assume reinvestment of distributions. Class Z shares are sold at net asset value with no Rule 12b-1 fees. Class Z shares have limited eligibility and the investment minimum requirement may vary. Please see the fund's prospectus for details. Performance for different share classes will vary based on differences in sales charges and fees associated with each class. Class Z share (newer class shares) performance information includes returns of the fund's class A shares (older class shares), as their expense structures more closely resemble those for the newer class shares for periods prior to the inception date of the newer class shares. Total returns are not restated to reflect any expense differential (e.g., Rule 12b-1 fees) between the older class shares and the newer class shares. Had the expense differential been reflected, the returns for the periods prior to the inception of newer class shares would have been different. 2 UNDERSTANDING YOUR EXPENSES Columbia Growth & Income Fund Sidebar: 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 Management 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 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 $1,000, which is invested at the beginning of the reporting period and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the "actual" column is calculated using the fund's actual operating expenses and total return for the period. The amount listed in the "hypothetical" column for each share class assumes that the return each year is 5% before expenses and includes the fund's actual expense ratio. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during this reporting period. 02/01/05 - 07/31/05
Account value at the Account value at the Expenses paid Fund's annualized beginning of the period ($) end of the period ($) during the period ($) expense ratio (%) Actual Hypothetical Actual Hypothetical Actual Hypothetical - ------------------------------------------------------------------------------------------------------------------------- Class A 1,000.00 1,000.00 1,047.11 1,018.84 6.09 6.01 1.20 Class B 1,000.00 1,000.00 1,043.49 1,015.12 9.88 9.74 1.95 Class C 1,000.00 1,000.00 1,043.19 1,015.12 9.88 9.74 1.95 Class Z 1,000.00 1,000.00 1,048.70 1,020.08 4.83 4.76 0.95
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 funds 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. 3 ECONOMIC UPDATE Columbia Growth & Income Fund sidebar: Summary For the 12-month period ended July 31, 2005 o Despite bouts of volatility, the broad stock market generated a solid double-digit return for the period. Value stocks outperformed growth stocks and small cap stocks outperformed large cap stocks, as measured by the Russell 1000 Value Index and the Russell 2000 Index. artwork: 2 arrows up Russell 1000 Value Index: 19.04% Russell 2000 Index: 24.78% o Investment-grade bonds chalked up modest gains as measured by the Lehman Brothers Aggregate Bond Index. High-yield bonds led the fixed income markets, as measured by the Merrill Lynch US High Yield, Cash Pay Index. artwork: 2 arrows up Lehman Index: 4.79% Merrill Lynch Index: 10.85% The Russell 1000 Value Index is an unmanaged index that tracks the performance of those Russell 1000 Index companies with lower price to book ratios and lower forecasted growth values. The Russell 2000 Index is an unmanaged index that tracks the performance of the 2,000 smallest of the 3,000 largest US companies based on market capitalization. The Lehman Brothers Aggregate Bond Index is a market value-weighted index that tracks the performance of fixed-rate, publicly placed, dollar-denominated, non-convertible investment grade 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. end sidebar The US economy moved ahead at a healthy pace during the 12-month period that began August 1, 2004 and ended July 31, 2005. Gross domestic product (GDP) expanded at an annualized rate of approximately 3.8% as job growth helped buoy consumer spending and rising profits boosted business spending. Record high energy prices failed to put a significant damper on growth, but we believe they are beginning to have an impact on the economy at the margins and may have figured into a dip in consumer confidence readings in July. Yet, overall, consumers remained optimistic. A robust labor market fueled confidence throughout the period. Job growth was relatively strong, and unemployment declined to 5.0%. Consumer spending continued to grow as retail sales and the housing market remained strong. In July, auto sales took a significant leap forward in response to widely-advertised "employee" discounts. The business sector contributed to the economy's growth. Yet, given a maturing economic cycle, two straight years of double-digit profit growth and a significant build-up of cash on corporate balance sheets, business spending was not as robust as expected. STOCKS MOVE AHEAD DESPITE BOUTS OF VOLATILITY The S&P 500 Index--a broad measure of large company stock market performance--returned 14.05% for this reporting period. Although returns were lackluster in the first three months of the period, most segments of the stock market bounced back after the presidential election in November. Stocks retreated again early in 2005 as rising energy prices and higher interest rates appeared to turn investors cautious once again. However, positive economic reports helped boost stock returns in the final three months of the period. Small- and mid-cap stocks outperformed large-cap stocks and value stocks led growth stocks by a significant margin. Energy and utilities stocks were the year's best performers. BONDS DELIVERED MODEST GAINS The US bond market delivered positive but modest returns despite rising short-term interest rates, which historically have driven yields on other maturity ranges higher--and bond prices lower. That was not the case over the past 12 months. The yield on the 10-year US Treasury note, a bellwether for the bond market, moved below 4.0% before edging back up to 4.28% at the end of the period--slightly lower than where it started the period. In this environment, the Lehman Brothers Aggregate Bond Index returned 4.79% for the 12-month period. High-yield bonds led the fixed income markets despite a setback in the spring when GM and Ford bonds were downgraded. The weak patch for high yield was temporary as generally improved credit ratings, stronger balance sheets and higher profits for many companies in the high-yield universe helped get the sector back on track. The Merrill Lynch US High Yield, Cash Pay Index returned 10.85%. SHORT-TERM INTEREST RATES MOVED HIGHER After a year of the lowest short-term interest rates in recent history, the Federal Reserve Board (the Fed) raised the federal funds rate, a key short-term rate, from 1.25% to 3.25%1 during the period. From the outset, the Fed indicated that it would raise short-term interest rates at a "measured pace" in an attempt to balance economic growth against inflationary pressures, and so far each of its nine increases have been in one-quarter percentage point increments. In recent testimony, Fed chairman Greenspan suggested that any future increases would likely follow the same gradual course. 1 The federal funds rate was raised to 3.5% on August 9, 2005 and to 3.75% on September 20, 2005. 4 PORTFOLIO MANAGERS' REPORT Columbia Growth & Income Fund sidebar: 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. Net asset value per share as of 07/31/05 ($) Class A 18.69 Class B 17.50 Class C 17.62 Class Z 18.72 Distributions declared per share as of 08/01/04 - 07/31/05 ($) Class A 0.22 Class B 0.10 Class C 0.10 Class Z 0.26 Holdings discussed in this report as of 07/31/05 (%) TXU 0.5 Entergy 1.3 Exelon 1.7 Federated Department Stores 1.4 J.C. Penney 1.4 American International Group 0.8 Nokia 0.5 Hewlett-Packard 1.2 Altria Group 1.9 Your fund is actively managed and the composition of the portfolio will change over time. Information provided is calculated as a percentage of net assets. end sidebar For the 12-month period ended July 31, 2005, Columbia Growth & Income Fund class A shares returned 14.16% without sales charge. The Russell 1000 Value Index gained 19.04%, and the average return of the Morningstar(R) Large Value Category was 15.80%.2 Strong returns from utility and consumer discretionary stocks helped the fund achieve a solid double-digit return. However, stock selection in the troubled financials sector detracted from performance as did stock selection and an underweight in the strong-performing technology sector. STRONG RETURNS FROM UTILITIES AND CONSUMER DISCRETIONARY STOCKS The utilities sector outperformed all other groups in the portfolio in both absolute and relative terms and was the largest contributor to the portfolio. The sector benefited broadly, both because of rising electricity prices and because of investors' increasing appetite for high dividend-yielding stocks. TXU led the group with triple-digit returns while Entergy, Con Edison and Exelon turned in solid performances as well. During the first half of the reporting period, we sold the fund's position in Con Edison as it reached our price target. In the consumer discretionary sector, Federated Department Stores and J.C. Penney, two leading department store chains, did very well as the management of both companies focused on executing their strategies to improve store operations. FINANCIALS CONTINUED TO STRUGGLE The financials sector continued to struggle as the Federal Reserve Board raised short-term interest rates. Some names in the insurance group were also troubled by allegations of fraud and other misconduct brought about by the SEC, with Marsh & McLennan and American International Group (AIG) being two such holdings in the fund's portfolio. The group underperformed in relative terms throughout the year as the absence of several better performing insurance and broker names worked to the fund's disadvantage. In addition, the fund owned St. Paul Travelers, an insurance company, which lagged several names in the group. We eliminated both St. Paul Travelers and Marsh & McLennan in the first six months of the period due to our concerns over operating fundamentals; however, we continued to hold AIG. Several of the fund's bank holdings also lagged the benchmark. POOR PERFORMANCES BY INFORMATION TECHNOLOGY AND CONSUMER STAPLES In technology, the portfolio was adversely affected by its underweight in the sector in addition to weak stock selection. The fund owned Nokia, which made a positive contribution to performance, but that was offset by the relative underperformance of Lexmark and Accenture. Lexmark reported weak first quarter results due to the apparent pricing competition from inkjet printers; moreover, the company guided investors to expect lower earnings for the second quarter. During the second half of the year, we sold Lexmark and initiated a position in Hewlett-Packard. Accenture was also eliminated from the portfolio. We felt the stock had reached fair valuation relative to its earnings potential and we were concerned about deteriorating business prospects going forward. An underweight in Altria Group early in the period hurt relative performance, as the stock rallied sharply following the company's announcement of a desire to split off its food businesses in 2006. We gradually 2 (C)2005 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. 5 Columbia Growth & Income Fund moved to an overweight position, as we believed the break-up value of the company was well in excess of the current stock price. UST fell sharply at the beginning of the second quarter as it reported weaker-than-expected first quarter results and lowered its guidance on earnings for the full year 2005. During the last six months, we sold the position in UST as we became concerned over competition from lower-priced generic brands. ABOUT YOUR FUND On September 16, 2005, the Fund merged into the Nations Value Fund and the Nations Value Fund was renamed Columbia Large Cap Value Fund. Lori Ensinger has co-managed Columbia Growth & Income Fund since June 2005 and has been with the advisor or its predecessors or affiliate organizations since 2001. /s/ Lori Ensinger Diane Sobin has co-managed the fund since June 2005 and has been with the advisor or its predecessors or affiliate organizations since 2001. /s/ Diane Sobin David Hoffman has co-managed the fund since June 2005 and has been with the advisor or its predecessors or affiliate organizations since 2001. /s/ David Hoffman Noah Petrucci has co-managed the fund since June 2005 and has been with the advisor or its predecessors or affiliate organizations since 2002. /s/ Noah Petrucci 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 and, in the advisor's opinion, undervalued. If the advisor's assessment of a company's prospects is wrong, the price of the company's stock may not approach the value the advisor has placed on it. 6 INVESTMENT PORTFOLIO July 31, 2005 Columbia Growth & Income Fund
Common Stocks - 97.2% CONSUMER DISCRETIONARY - 7.9% Shares Value ($) - ------------------------------------------ ----------------------------------------------------------------------------- Auto Components - 0.5% Johnson Controls, Inc. 177,100 10,172,624 Auto Components Total 10,172,624 ----------------------------------------------------------------------------- Hotels, Restaurants & Leisure - 1.5% Carnival Corp. 177,000 9,274,800 Harrah's Entertainment, Inc. 101,024 7,954,630 McDonald's Corp. 311,519 9,710,047 Hotels, Restaurants & Leisure Total 26,939,477 ----------------------------------------------------------------------------- Media - 1.3% News Corp., Class A 1,014,000 16,609,320 Viacom, Inc., Class A 229,594 7,721,246 Media Total 24,330,566 ----------------------------------------------------------------------------- Multiline Retail - 2.8% Federated Department Stores, Inc. 343,988 26,098,370 J.C. Penney Co., Inc. 448,161 25,159,758 Multiline Retail Total 51,258,128 ----------------------------------------------------------------------------- Specialty Retail - 1.8% Limited Brands, Inc. 450,441 10,981,752 Sherwin-Williams Co. 157,221 7,485,292 Staples, Inc. 633,100 14,415,687 Specialty Retail Total 32,882,731 ------------- CONSUMER DISCRETIONARY TOTAL 145,583,526 CONSUMER STAPLES - 6.2% - ------------------------------------------ ----------------------------------------------------------------------------- Beverages - 1.8% Diageo PLC, ADR 205,875 11,461,061 PepsiCo, Inc. 370,419 20,198,948 Beverages Total 31,660,009 ----------------------------------------------------------------------------- Food Products - 0.5% Cadbury Schweppes PLC, ADR 244,900 9,462,936 Food Products Total 9,462,936 ----------------------------------------------------------------------------- Household Products - 2.0% Clorox Co. 329,143 18,382,637 Kimberly-Clark Corp. 286,267 18,252,384 Household Products Total 36,635,021 ----------------------------------------------------------------------------- Tobacco - 1.9% Altria Group, Inc. 524,515 35,121,524 Tobacco Total 35,121,524 ------------- CONSUMER STAPLES TOTAL 112,879,490 ENERGY - 14.5% - ------------------------------------------ ----------------------------------------------------------------------------- Energy Equipment & Services - 2.2% Halliburton Co. 402,416 22,555,417 Nabors Industries Ltd. (a) 30,100 1,970,045 Schlumberger Ltd. 179,903 15,065,077 Energy Equipment & Services Total 39,590,539 ----------------------------------------------------------------------------- See Accompanying Notes to Financial Statements. 7 July 31, 2005 Columbia Growth & Income Fund Common Stocks - (continued) ENERGY - (continued) Shares Value ($) - ------------------------------------------ ----------------------------------------------------------------------------- Oil, Gas & Consumable Fuels - 12.3% BP PLC, ADR 279,772 18,431,380 ChevronTexaco Corp. 289,831 16,813,096 ConocoPhillips 455,980 28,539,788 EOG Resources, Inc. 185,800 11,352,380 Exxon Mobil Corp. 1,415,592 83,166,030 Marathon Oil Corp. 251,797 14,694,873 Murphy Oil Corp. 156,200 8,284,848 Occidental Petroleum Corp. 310,200 25,523,256 Williams Companies, Inc. 924,300 19,632,132 Oil, Gas & Consumable Fuels Total 226,437,783 ------------- ENERGY TOTAL 266,028,322 FINANCIALS - 31.0% - ------------------------------------------ ----------------------------------------------------------------------------- Capital Markets - 6.5% A.G. Edwards, Inc. 108,762 4,818,157 Bank of New York Co., Inc. 802,388 24,697,503 Franklin Resources, Inc. 134,130 10,840,387 Goldman Sachs Group, Inc. 220,207 23,667,848 Merrill Lynch & Co., Inc. 700,154 41,155,052 Morgan Stanley 255,468 13,552,577 Capital Markets Total 118,731,524 ----------------------------------------------------------------------------- Commercial Banks - 10.2% Marshall & Ilsley Corp. 469,371 21,553,516 National City Corp. 274,226 10,121,682 North Fork Bancorporation, Inc. 754,283 20,659,811 PNC Financial Services Group, Inc. 168,505 9,237,444 SunTrust Banks, Inc. 102,100 7,424,712 U.S. Bancorp 1,295,478 38,942,069 UnionBanCal Corp. 67,600 4,822,584 Wachovia Corp. 716,395 36,091,980 Wells Fargo & Co. 637,323 39,093,393 Commercial Banks Total 187,947,191 ----------------------------------------------------------------------------- Diversified Financial Services - 3.4% Citigroup, Inc. 1,002,894 43,625,889 JPMorgan Chase & Co. 523,192 18,384,967 Diversified Financial Services Total 62,010,856 ----------------------------------------------------------------------------- Insurance - 6.5% Allstate Corp. 188,539 11,549,899 Ambac Financial Group, Inc. 193,713 13,916,342 American International Group, Inc. 248,980 14,988,596 Chubb Corp. 135,479 12,033,245 Genworth Financial, Inc., Class A 610,800 19,154,688 Hartford Financial Services Group, Inc. 240,336 19,363,872 Willis Group Holdings Ltd. 262,467 8,703,406 XL Capital Ltd., Class A 277,226 19,910,371 Insurance Total 119,620,419 ----------------------------------------------------------------------------- Real Estate - 2.4% Archstone-Smith Trust, REIT 334,125 14,200,312 Host Marriott Corp., REIT 229,800 4,285,770 Kimco Realty Corp., REIT 226,668 14,883,021 ProLogis, REIT 227,100 10,346,676 Real Estate Total 43,715,779 ----------------------------------------------------------------------------- Thrifts & Mortgage Finance - 2.0% Fannie Mae 245,700 13,724,802 Golden West Financial Corp. 339,000 22,075,680 Thrifts & Mortgage Finance Total 35,800,482 ------------- FINANCIALS TOTAL 567,826,251 See Accompanying Notes to Financial Statements. 8 July 31, 2005 Columbia Growth & Income Fund Common Stocks - (continued) HEALTH CARE - 6.5% Shares Value ($) - ------------------------------------------ ----------------------------------------------------------------------------- Health Care Equipment & Supplies - 0.8% Baxter International, Inc. 359,900 14,133,273 Health Care Equipment & Supplies Total 14,133,273 ----------------------------------------------------------------------------- Health Care Providers & Services - 1.7% Aetna, Inc. 260,376 20,153,102 CIGNA Corp. 110,870 11,835,373 Health Care Providers & Services Total 31,988,475 ----------------------------------------------------------------------------- Pharmaceuticals - 4.0% AstraZeneca PLC 336,900 15,308,736 GlaxoSmithKline PLC, ADR 194,157 9,210,808 Johnson & Johnson 229,005 14,647,160 Novartis AG, ADR 232,833 11,341,295 Pfizer, Inc. 875,858 23,210,237 Pharmaceuticals Total 73,718,236 ------------- HEALTH CARE TOTAL 119,839,984 INDUSTRIALS - 11.2% - ------------------------------------------ ----------------------------------------------------------------------------- Aerospace & Defense - 5.2% General Dynamics Corp. 236,166 27,203,962 Goodrich Corp. 422,100 18,673,704 Honeywell International, Inc. 457,400 17,966,672 United Technologies Corp. 631,022 31,992,815 Aerospace & Defense Total 95,837,153 ----------------------------------------------------------------------------- Building Products - 0.2% American Standard Companies, Inc. 76,000 3,365,280 Building Products Total 3,365,280 ----------------------------------------------------------------------------- Commercial Services & Supplies - 1.4% Republic Services, Inc. 167,488 6,071,440 Waste Management, Inc. 702,057 19,741,843 Commercial Services & Supplies Total 25,813,283 ----------------------------------------------------------------------------- Industrial Conglomerates - 0.9% General Electric Co. 479,361 16,537,954 Industrial Conglomerates Total 16,537,954 ----------------------------------------------------------------------------- Machinery - 3.5% Caterpillar, Inc. 346,000 18,652,860 Deere & Co. 200,301 14,728,132 Eaton Corp. 218,734 14,292,080 Ingersoll-Rand Co., Ltd., Class A 208,100 16,267,177 Machinery Total 63,940,249 ------------- INDUSTRIALS TOTAL 205,493,919 INFORMATION TECHNOLOGY - 3.3% - ------------------------------------------ ----------------------------------------------------------------------------- Communications Equipment - 0.5% Nokia Oyj, ADR 622,276 9,925,302 Communications Equipment Total 9,925,302 ----------------------------------------------------------------------------- Computers & Peripherals - 2.5% Dell, Inc. (a) 152,500 6,171,675 Hewlett-Packard Co. 880,600 21,680,372 International Business Machines Corp. 214,397 17,893,574 Computers & Peripherals Total 45,745,621 ----------------------------------------------------------------------------- Semiconductors & Semiconductor Intel Corp. 205,809 5,585,656 Equipment - 0.3% Semiconductors & Semiconductor Equipment Total 5,585,656 ------------- INFORMATION TECHNOLOGY TOTAL 61,256,579 See Accompanying Notes to Financial Statements. 9 July 31, 2005 Columbia Growth & Income Fund Common Stocks - (continued) MATERIALS - 6.3% Shares Value ($) - ------------------------------------------ ----------------------------------------------------------------------------- Chemicals - 4.0% Air Products & Chemicals, Inc. 463,502 27,698,879 Ashland, Inc. 129,100 7,933,195 Dow Chemical Co. 378,400 18,144,280 PPG Industries, Inc. 108,699 7,068,696 Rohm and Haas Co. 272,900 12,569,774 Chemicals Total 73,414,824 ----------------------------------------------------------------------------- Containers & Packaging - 0.2% Bemis Co. 126,100 3,404,700 Containers & Packaging Total 3,404,700 ----------------------------------------------------------------------------- Metals & Mining - 0.6% Nucor Corp. 217,700 12,071,465 Metals & Mining Total 12,071,465 ----------------------------------------------------------------------------- Paper & Forest Products - 1.5% MeadWestvaco Corp. 451,232 13,184,999 Weyerhaeuser Co. 204,773 14,125,242 Paper & Forest Products Total 27,310,241 ------------- MATERIALS TOTAL 116,201,230 TELECOMMUNICATION SERVICES - 3.7% - ------------------------------------------ ----------------------------------------------------------------------------- Diversified Telecommunication Services - 3.7% BellSouth Corp. 557,107 15,376,153 SBC Communications, Inc. 897,442 21,942,457 Verizon Communications, Inc. 868,579 29,731,459 Diversified Telecommunication Services Total 67,050,069 ------------- TELECOMMUNICATION SERVICES TOTAL 67,050,069 UTILITIES - 6.6% - ------------------------------------------ ----------------------------------------------------------------------------- Electric Utilities - 3.6% Entergy Corp. 308,044 24,008,949 Exelon Corp. 581,201 31,105,878 FPL Group, Inc. 252,284 10,878,486 Electric Utilities Total 65,993,313 ----------------------------------------------------------------------------- Independent Power Producers Duke Energy Corp. 833,200 24,612,728 & Energy Traders - 1.8% TXU Corp. 106,333 9,212,691 Independent Power Producers & Energy Traders Total 33,825,419 ----------------------------------------------------------------------------- Multi-Utilities - 1.2% Dominion Resources, Inc. 129,791 9,586,363 PG&E Corp. 310,199 11,672,789 Multi-Utilities Total 21,259,152 ------------- UTILITIES TOTAL 121,077,884 TOTAL COMMON STOCKS (COST OF $1,538,399,497) 1,783,237,254 See Accompanying Notes to Financial Statements. 10 July 31, 2005 Columbia Growth & Income Fund Short-Term Obligation - 2.9% Par ($) Value ($) - ------------------------------------------ ----------------------------------------------------------------------------- Repurchase agreement with State Street Bank & Trust Co., dated 07/29/05, due 08/01/05 at 3.170%, collateralized by a U.S. Treasury Bond maturing 11/15/16, market value of $54,631,238 (repurchase proceeds $53,571,148) 53,557,000 53,557,000 TOTAL SHORT-TERM OBLIGATION (COST OF $53,557,000) 53,557,000 TOTAL INVESTMENTS - 100.1% (COST OF $1,591,956,497) (B) 1,836,794,254 OTHER ASSETS & LIABILITIES, NET - (0.1)% (1,440,897) NET ASSETS - 100.0% 1,835,353,357
NOTES TO INVESTMENT PORTFOLIO: (a)Non-income producing security. (b)Cost for federal income tax purposes is $1,591,956,575. At July 31, 2005, the Fund held investments in the following sectors: SECTOR (UNAUDITED) % OF NET ASSETS - ----------------------------------------------------------------------- Financials 31.0% Energy 14.5 Industrials 11.2 Consumer Discretionary 7.9 Utilities 6.6 Health Care 6.5 Materials 6.3 Consumer Staples 6.2 Telecommunication Services 3.7 Information Technology 3.3 Short-Term Obligation 2.9 Other Assets &Liabilities, Net (0.1) ----- 100.0% ===== ACRONYM NAME ------- ---- ADR American Depositary Receipt REIT Real Estate Investment Trust See Accompanying Notes to Financial Statements. 11 Statement of Assets and Liabilities July 31, 2005 Columbia Growth & Income Fund
($) - ------------------------------------------ ----------------------------------------------------------------------------- Assets Investments, at cost 1,591,956,497 ------------- Investments, at value 1,836,794,254 Cash 329 Receivable for: Fund shares sold 780,740 Interest 14,148 Dividends 3,255,590 Deferred Trustees' compensation plan 60,100 ------------- Total Assets 1,840,905,161 ----------------------------------------------------------------------------- Liabilities Payable for: Fund shares repurchased 2,734,046 Investment advisory fee 1,073,935 Transfer agent fee 501,168 Pricing and bookkeeping fees 38,469 Chief compliance officer expenses and fees 1,088 Merger costs 322,301 Custody fee 6,500 Distribution and service fees 731,378 Deferred Trustees' fees 60,100 Other liabilities 82,819 ------------- Total Liabilities 5,551,804 Net Assets 1,835,353,357 ----------------------------------------------------------------------------- Composition of Net Assets Paid-in capital 1,634,890,818 Undistributed net investment income 10,736,855 Accumulated net realized loss (55,112,073) Net unrealized appreciation on investments 244,837,757 Net Assets 1,835,353,357 ----------------------------------------------------------------------------- Class A Net assets 587,943,920 Shares outstanding 31,460,863 Net asset value per share 18.69(a) Maximum offering price per share ($18.69/0.9425) 19.83(b) ----------------------------------------------------------------------------- Class B Net assets 665,732,116 Shares outstanding 38,045,244 Net asset value and offering price per share 17.50(a) ----------------------------------------------------------------------------- Class C Net assets 77,933,721 Shares outstanding 4,422,413 Net asset value and offering price per share 17.62(a) ----------------------------------------------------------------------------- Class Z Net assets 503,743,600 Shares outstanding 26,915,138 Net asset value, offering and redemption price per share 18.72
(a)Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. (b)On sales of $50,000 or more the offering price is reduced. See Accompanying Notes to Financial Statements. 12 Statement of OPERATIONS For the Year Ended July 31, 2005 Columbia Growth & Income Fund
($) - ------------------------------------------ ----------------------------------------------------------------------------- Investment Income Dividends 46,580,456 Interest 217,385 ------------- Total Investment Income (net of foreign taxes withheld of $287,109) 46,797,841 ----------------------------------------------------------------------------- Expenses Investment advisory fee 12,971,586 Distribution fee: Class B 5,272,961 Class C 642,047 Service fee: Class A 1,505,379 Class B 1,757,653 Class C 214,016 Transfer agent fee 3,893,664 Pricing and bookkeeping fees 467,633 Trustees' fees 55,027 Custody fee 94,262 Chief compliance officer expenses and fees (See Note 4) 9,884 Merger costs 322,301 Non-recurring costs (See Note 8) 34,531 Other expenses 473,349 ------------- Total Expenses 27,714,293 Non-recurring costs assumed by Investment Advisor (See Note 8) (34,531) ------------- Net Expenses 27,679,762 ------------- Net Investment Income 19,118,079 ----------------------------------------------------------------------------- Net Realized and Unrealized Net realized gain on investments 249,994,426 Gain (Loss) on Investments Net change in unrealized appreciation (depreciation) on investments (22,566,347) ------------- Net Gain 227,428,079 ------------- Net Increase in Net Assets from Operations 246,546,158
See Accompanying Notes to Financial Statements. 13 Statement of Changes in Net Assets Columbia Growth & Income Fund
Year Ended July 31, Increase (Decrease) in Net Assets: 2005 ($) 2004 ($) - ------------------------------------------ ----------------------------------------------------------------------------- Operations Net investment income 19,118,079 16,388,137 Net realized gain on investments 249,994,426 48,265,445 Net change in unrealized appreciation (depreciation) on investments (22,566,347) 182,278,097 ------------ ------------ Net Increase from Operations 246,546,158 246,931,679 ----------------------------------------------------------------------------- Distributions Declared to Shareholders From net investment income: Class A (7,394,731) (5,897,569) Class B (4,128,295) (1,496,752) Class C (487,826) (222,462) Class Z (7,337,065) (4,825,957) ------------ ------------ Total Distributions Declared to Shareholders (19,347,917) (12,442,740) ----------------------------------------------------------------------------- Share Transactions Class A: Subscriptions 63,569,637 110,785,469 Distributions reinvested 6,683,304 5,352,979 Redemptions (175,735,283) (202,240,844) ------------ ------------ Net Decrease (105,482,342) (86,102,396) Class B: Subscriptions 31,497,902 63,411,224 Distributions reinvested 3,773,257 1,357,040 Redemptions (171,605,022) (183,048,069) ------------ ------------ Net Decrease (136,333,863) (118,279,805) Class C: Subscriptions 4,733,086 12,823,341 Distributions reinvested 436,662 202,402 Redemptions (34,871,246) (43,080,290) ------------ ------------ Net Decrease (29,701,498) (30,054,547) Class Z: Subscriptions 102,714,115 136,454,093 Distributions reinvested 6,140,661 4,266,571 Redemptions (137,474,890) (104,262,595) ------------ ------------ Net Increase (Decrease) (28,620,114) 36,458,069 Net Decrease from Share Transactions (300,137,817) (197,978,679) Total Increase (Decrease) in Net Assets (72,939,576) 36,510,260 ----------------------------------------------------------------------------- Net Assets Beginning of period 1,908,292,933 1,871,782,673 End of period 1,835,353,357 1,908,292,933 Undistributed net investment income, at end of period 10,736,855 11,362,036
See Accompanying Notes to Financial Statements. 14 Columbia Growth & Income Fund
Year Ended July 31, 2005 2004 - ------------------------------------------ ----------------------------------------------------------------------------- Changes in Shares Class A: Subscriptions 3,577,011 6,980,307 Issued for distributions reinvested 372,120 342,763 Redemptions (9,972,245) (12,621,689) ------------ ------------ Net Decrease (6,023,114) (5,298,619) Class B: Subscriptions 1,888,025 4,264,505 Issued for distributions reinvested 223,270 92,195 Redemptions (10,285,727) (12,190,707) ------------ ------------ Net Decrease (8,174,432) (7,834,007) Class C: Subscriptions 282,475 861,203 Issued for distributions reinvested 25,671 13,657 Redemptions (2,100,460) (2,839,364) ------------ ------------ Net Decrease (1,792,314) (1,964,504) Class Z: Subscriptions 5,791,641 8,517,555 Issued for distributions reinvested 341,908 273,149 Redemptions (7,651,027) (6,498,126) ------------ ------------ Net Increase (Decrease) (1,517,478) 2,292,578
See Accompanying Notes to Financial Statements. 15 NOTES TO FINANCIAL STATEMENTS July 31, 2005 Columbia Growth & Income Fund NOTE 1. ORGANIZATION Columbia Growth & Income Fund (the "Fund"), a series of Columbia Funds Trust VI (the "Trust"), is a diversified portfolio. The Trust is a Massachusetts business trust registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. INVESTMENT GOAL The Fund seeks long-term growth and income. FUND SHARES The Fund may issue an unlimited number of shares and offers four classes of shares: Class A, Class B, Class C and Class Z. Each share class has its own sales charge and expense structure. Class A shares are subject to a maximum front-end sales charge of 5.75% based on the amount of initial investment. Class A shares purchased without an initial sales charge are subject to a 1.00% contingent deferred sales charge ("CDSC") on shares sold within eighteen months on an original purchase of $1 million to $25 million. Class B shares are subject to a maximum CDSC of 5.00% based upon the holding period after purchase. Class B shares will convert to Class A shares in a certain number of years after purchase, depending on the program under which shares were purchased. Class C shares are subject to a 1.00% CDSC on shares sold within one year after purchase. Class Z shares are offered continuously at net asset value. There are certain restrictions on the purchase of Class Z shares, as described in the Fund's prospectus. NOTE 2. SIGNIFICANT ACCOUNTING POLICIES USE OF ESTIMATES The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. SECURITY VALUATION Equity securities are valued at the last sale price 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. If a security is valued at a "fair value", such value is likely to be different from the last quoted market price for the security. 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. 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 16 July 31, 2005 Columbia Growth & Income Fund 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. Effective August 1, 2004, the Fund adopted the policy to reduce cost of investments for financial statement purposes by the distributions received in excess of income from REITs. The cumulative effect of this accounting change did not impact the net assets of the Fund, but resulted in reclassifications as follows: Decrease in Decrease in Undistributed Cost Net Investment Income - -------------------------------------------------------------------------------- $75,704 $75,704 The effect of the change for the year ended July 31, 2005 is as follows: Increase in Increase in Unrealized Decrease in Net Net Realized Appreciation Investment Income Gain - -------------------------------------------------------------------------------- $30,213 $30,882 $669 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 ex-date. Net realized capital gains, if any, are distributed at least annually. NOTE 3. FEDERAL TAX INFORMATION The timing and character of income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund's capital accounts for permanent tax differences to reflect income and gains available for distribution (or available capital loss carryforwards) under income tax regulations. For the year ended July 31, 2005, permanent book and tax basis differences resulting primarily from differing treatments for REIT dividends and non-deductible merger fees were identified and reclassified among the components of the Fund's net assets as follows: Undistributed Net Investment Accumulated Income Net Realized Loss Paid-In Capital - -------------------------------------------------------------------------------- $(319,639) $641,941 $(322,302) Net investment income and net realized gains (losses), as disclosed on the Statement of Operations, and net assets were not affected by this reclassification. The tax character of distributions paid during the years ended July 31, 2005 and July 31, 2004 was as follows: Year Ended July 31, 2005 2004 - -------------------------------------------------------------------------------- Distributions paid from: - -------------------------------------------------------------------------------- Ordinary income $ 19,347,917 $ 12,442,740 - -------------------------------------------------------------------------------- Long-term capital gains -- -- As of July 31, 2005, the components of distributable earnings on a tax basis were as follows: Undistributed Undistributed Long-Term Net Unrealized Ordinary Income Capital Gains Appreciation* - -------------------------------------------------------------------------------- $10,800,586 $-- $244,837,679 * The differences between book-basis and tax-basis net unrealized appreciation are primarily due to deferral of losses from wash sales and REIT adjustments. 17 July 31, 2005 Columbia Growth & Income Fund Unrealized appreciation and depreciation at July 31, 2005, based on cost of investments for federal income tax purposes was: Unrealized appreciation $267,968,671 Unrealized depreciation (23,130,992) - -------------------------------------------------------------------------------- Net unrealized appreciation $244,837,679 The following capital loss carryforwards 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 - -------------------------------------------------------------------------------- 2011 $55,111,994 Capital loss carryforwards of $250,554,250 were utilized during the year ended July 31, 2005 for the Fund. 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. Effective on or about September 30, 2005, Columbia Management Advisors, Inc. will undergo a name change to Columbia Management Advisors, LLC. 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% 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 year ended July 31, 2005, the Fund's effective investment advisory fee rate was 0.68%. 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 year ended July 31, 2005, the 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 contracted 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. Effective on or about September 30, 2005, Columbia Funds Services, Inc. will undergo a name change to Columbia Management Services, Inc. For the year ended July 31, 2005, the Fund's effective transfer agent fee rate, inclusive of out-of-pocket expenses, was 0.21%. 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 year ended July 31, 2005, the Distributor has retained net underwriting discounts of $64,240 on sales of the Fund's Class A shares and received net CDSC fees of $5,059, $1,669,761 and $16,205 on Class A, Class B and Class C share redemptions, respectively. 18 July 31, 2005 Columbia Growth & Income Fund Effective August 22, 2005, Columbia Funds Distributor, Inc. changed its name to Columbia Management Distributors, Inc. The Fund has adopted a 12b-1 plan (the "Plan") which allows 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. For the year ended July 31, 2005, there were no such credits. 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 Chief Compliance Officer position. 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. OTHER Columbia provides certain services to the Fund related to Sarbanes-Oxley compliance. For the year ended July 31, 2005, the Fund paid $3,444 to Columbia for such services. This amount is included in "Other expenses" on the Statement of Operations. NOTE 5. PORTFOLIO INFORMATION For the year ended July 31, 2005, the cost of purchases and proceeds from sales of securities, excluding short-term obligations, were $1,136,240,504 and $1,479,764,636, 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 year ended July 31, 2005, the Fund did not borrow under this arrangement. NOTE 7. SHARES OF BENEFICIAL INTEREST As of July 31, 2005, Bank of America and/or its affiliates held 3.0% of the shares outstanding of the Fund. Subscription and redemption activity of this account may have a significant effect on the operations of the Fund. NOTE 8. 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 19 July 31, 2005 Columbia Growth & Income Fund 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 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, LLC to reduce certain Columbia Funds, Nations Funds and other mutual funds 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. At this time, the distribution plan is still under development. As such, any gain to the Fund or its shareholders cannot currently be determined. 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 funds, the Trustees of the Columbia Funds, FleetBoston Financial Corporation and its affiliated entities and/or Bank of America and its affiliated entities. More than 300 cases including those filed against entities unaffiliated with the funds, their Boards, FleetBoston Financial Corporation and its affiliated entities and/or Bank of America and its affiliated entities have been transferred to the Federal District Court in Maryland and consolidated in a multi-district proceeding (the "MDL"). The derivative cases purportedly brought on behalf of the Columbia Funds in the MDL have been consolidated under the lead case. The fund derivative plaintiffs allege that the funds were harmed by market timing and late trading activity and seek, among other things, the removal of the trustees of the Columbia Funds, removal of the Columbia Group, disgorgement of all management fees and monetary damages. On March 21, 2005 purported class action plaintiffs filed suit in Massachusetts state court alleging that the conduct, including market timing, entitles Class B shareholders in certain Columbia Funds to an exemption from contingent deferred sales charges upon early redemption ("the CDSC Lawsuit"). The CDSC Lawsuit has been removed to federal court in Massachusetts and the federal Judicial Panel has transferred the CDSC Lawsuit to the MDL. The MDL is ongoing. Accordingly, an estimate of the financial impact of this litigation on any Fund, if any, cannot currently be made. On January 11, 2005, a putative class action lawsuit was filed in federal district court in Massachusetts against, among others, the Trustees of the Columbia Funds 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. 20 July 31, 2005 Columbia Growth & Income Fund In 2004, certain Columbia Funds, advisers and affiliated entities were named as defendants in certain purported shareholder class and derivative actions making claims, including claims under the Investment Company and the Investment Advisers Acts of 1940 and state law. The suits allege, inter alia, that the fees and expenses paid by the funds are excessive and that the advisers and their affiliates inappropriately used fund assets to distribute the funds and for other improper purpose. On March 2, 2005, the actions were consolidated in the Massachusetts federal court as In re Columbia Entities Litigation. The plaintiffs filed a consolidated amended complaint on June 9, 2005. The Fund 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 Fund. For the year ended July 31, 2005, Columbia has assumed $34,531 of legal, consulting services and Trustees' fees incurred by the Fund in connection with these matters. NOTE 9. SUBSEQUENT EVENT On September 16, 2005, the Fund merged into the Nations Value Fund and the Nations Value Fund was renamed Columbia Large Cap Value Fund. 21 FINANCIAL HIGHLIGHTS Columbia Growth & Income Fund Selected data for a share outstanding throughout each period is as follows:
YEAR ENDED PERIOD JULY 31, ENDED YEAR ENDED JUNE 30, -------------------------- JULY 31, ---------------------------------------- CLASS A SHARES 2005 2004 2003 (A) 2003 2002 2001 - ------------------------------------------------------------------------------------------------------------------------------------ Net Asset Value, Beginning of Period $ 16.57 $ 14.69 $ 14.75 $ 15.67 $ 18.98 $ 20.60 - ------------------------------------------------------------------------------------------------------------------------------------ INCOME FROM INVESTMENT OPERATIONS: Net investment income (b) 0.22 0.18 0.02 0.11 0.11 0.12 Net realized and unrealized gain (loss) on investments 2.12 1.84 (0.08) (0.72) (1.89) 2.59 ------------ ------------ ------------ ------------ ------------ ------------ Total from Investment Operations 2.34 2.02 (0.06) (0.61) (1.78) 2.71 - ------------------------------------------------------------------------------------------------------------------------------------ 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) ------------ ------------ ------------ ------------ ------------ ------------ Total Distributions Declared to Shareholders (0.22) (0.14) -- (0.31) (1.53) (4.33) - ------------------------------------------------------------------------------------------------------------------------------------ Net Asset Value, End of Period $ 18.69 $ 16.57 $ 14.69 $ 14.75 $ 15.67 $ 18.98 Total return (c) 14.16% 13.83%(d) (0.41)%(d)(e) (3.75)%(d) (10.24)%(d) 13.34%(d) - ------------------------------------------------------------------------------------------------------------------------------------ RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA: Expenses (f) 1.21% 1.21% 1.36%(g) 1.40% 1.31% 1.32% Net investment income (f) 1.25% 1.11% 1.93%(g) 0.83% 0.60% 0.62% Waiver/reimbursement -- 0.01% 0.05%(g) 0.04% 0.05% 0.03% Portfolio turnover rate 60% 52% 6%(e) 63% 47% 104% Net assets, end of period (000's) $587,944 $621,243 $628,680 $635,415 $761,122 $503,647 - ------------------------------------------------------------------------------------------------------------------------------------
(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)Had the Investment Advisor not waived or reimbursed a portion of expenses, total return would have been reduced. (e)Not annualized. (f)The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (g)Annualized. 22 Columbia Growth & Income Fund Selected data for a share outstanding throughout each period is as follows:
YEAR ENDED PERIOD JULY 31, ENDED YEAR ENDED JUNE 30, -------------------------- JULY 31, ---------------------------------------- CLASS B SHARES 2005 2004 2003 (A) 2003 2002 2001 - ------------------------------------------------------------------------------------------------------------------------------------ Net Asset Value, Beginning of Period $ 15.53 $ 13.78 $ 13.84 $ 14.77 $ 18.01 $ 19.88 - ------------------------------------------------------------------------------------------------------------------------------------ INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss) (b) 0.08 0.05 0.01 0.01 (0.03) (0.03) Net realized and unrealized gain (loss) on investments 1.99 1.73 (0.07) (0.69) (1.77) 2.49 ------------ ------------ ------------ ------------ ------------ ------------ Total from Investment Operations 2.07 1.78 (0.06) (0.68) (1.80) 2.46 - ------------------------------------------------------------------------------------------------------------------------------------ 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) ------------ ------------ ------------ ------------ ------------ ------------ Total Distributions Declared to Shareholders (0.10) (0.03) -- (0.25) (1.44) (4.33) - ------------------------------------------------------------------------------------------------------------------------------------ Net Asset Value, End of Period $ 17.50 $ 15.53 $ 13.78 $ 13.84 $ 14.77 $ 18.01 Total return (c) 13.32% 12.92%(d) (0.43)%(d)(e) (4.50)%(d) (10.89)%(d) 12.46%(d) - ------------------------------------------------------------------------------------------------------------------------------------ RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA: Expenses (f) 1.96% 1.96% 2.11%(g) 2.15% 2.06% 2.07% Net investment income (loss) (f) 0.50% 0.36% 1.18%(g) 0.07% (0.15)% (0.13)% Waiver/reimbursement -- 0.01% 0.05%(g) 0.04% 0.05% 0.03% Portfolio turnover rate 60% 52% 6%(e) 63% 47% 104% Net assets, end of period (000's) $665,732 $718,022 $745,122 $752,605 $895,904 $883,754 - ------------------------------------------------------------------------------------------------------------------------------------
(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)Had the Investment Advisor not waived or reimbursed a portion of expenses, total return would have been reduced. (e)Not annualized. (f)The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (g)Annualized. 23 Columbia Growth & Income Fund Selected data for a share outstanding throughout each period is as follows:
YEAR ENDED PERIOD JULY 31, ENDED YEAR ENDED JUNE 30, -------------------------- JULY 31, ---------------------------------------- CLASS C SHARES 2005 2004 2003 (A) 2003 2002 2001 - ------------------------------------------------------------------------------------------------------------------------------------ Net Asset Value, Beginning of Period $ 15.64 $ 13.88 $ 13.94 $ 14.87 $ 18.12 $ 19.99 - ------------------------------------------------------------------------------------------------------------------------------------ Income from Investment Operations: Net investment income (loss) (b) 0.08 0.05 0.01 0.01 (0.03) (0.02) Net realized and unrealized gain (loss) on investments 2.00 1.74 (0.07) (0.69) (1.78) 2.48 ------------ ------------ ------------ ------------ ------------ ------------ Total from Investment Operations 2.08 1.79 (0.06) (0.68) (1.81) 2.46 - ------------------------------------------------------------------------------------------------------------------------------------ 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) ------------ ------------ ------------ ------------ ------------ ------------ Total Distributions Declared to Shareholders (0.10) (0.03) -- (0.25) (1.44) (4.33) - ------------------------------------------------------------------------------------------------------------------------------------ Net Asset Value, End of Period $ 17.62 $ 15.64 $ 13.88 $ 13.94 $ 14.87 $ 18.12 Total return (c) 13.29% 12.90%(d) (0.43)%(d)(e) (4.47)%(d) (10.88)%(d) 12.38%(d) - ------------------------------------------------------------------------------------------------------------------------------------ RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA: Expenses (f) 1.96% 1.96% 2.11%(g) 2.15% 2.06% 2.06% Net investment income (loss) (f) 0.50% 0.36% 1.19%(g) 0.08% (0.15)% (0.13)% Waiver/reimbursement -- 0.01% 0.05%(g) 0.04% 0.05% 0.03% Portfolio turnover rate 60% 52% 6%(e) 63% 47% 104% Net assets, end of period (000's) $77,934 $97,226 $113,542 $115,314 $129,661 $77,565 - ------------------------------------------------------------------------------------------------------------------------------------
(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)Had the Investment Advisor not waived or reimbursed a portion of expenses, total return would have been reduced. (e)Not annualized. (f)The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (g)Annualized. 24 Columbia Growth & Income Fund Selected data for a share outstanding throughout each period is as follows:
YEAR ENDED PERIOD PERIOD JULY 31, ENDED YEAR ENDED JUNE 30, ENDED -------------------------- JULY 31, ------------------------- JUNE 30, CLASS Z SHARES 2005 2004 2003 (A) 2003 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) 0.27 0.22 0.03 0.16 0.16 0.06 Net realized and unrealized gain (loss) on investments 2.12 1.84 (0.08) (0.74) (1.88) (0.70) ------------ ------------ ------------ ------------ ------------ ------------ Total from Investment Operations 2.39 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 $ 18.72 $ 16.59 $ 14.71 $ 14.76 $ 15.68 $ 19.00 Total return (e) 14.47% 14.08%(f) (0.34)%(f)(g) (3.52)%(f) (9.94)%(f) (3.26)%(f)(g) - ------------------------------------------------------------------------------------------------------------------------------------ RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA: Expenses (h) 0.96% 0.96% 1.11%(i) 1.15% 1.06% 1.08%(i) Net investment income (h) 1.50% 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 60% 52% 6%(g) 63% 47% 104% Net assets, end of period (000's) $503,744 $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)Had the Investment Advisor not waived or reimbursed a portion of expenses, total return would have been reduced. (g)Not annualized. (h)The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (i)Annualized. 25 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Columbia Growth & Income Fund TO THE TRUSTEES OF COLUMBIA FUNDS TRUST VI AND THE SHAREHOLDERS OF COLUMBIA GROWTH & Income Fund In our opinion, the accompanying statement of assets and liabilities, including the investment portfolio, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Columbia Growth & Income Fund (the "Fund") (a series of Columbia Funds Trust VI) at July 31, 2005, and the results of its operations, the changes in its net assets and the financial highlights for the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fund's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States), which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at July 31, 2005 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion. PricewaterhouseCoopers LLP Boston, Massachusetts September 23, 2005 26 UNAUDITED INFORMATION Columbia Growth & Income Fund FEDERAL INCOME TAX INFORMATION 100% of the ordinary income distributed by the Fund for the year ended July 31, 2005, qualifies for the corporate dividends received deduction. For non-corporate shareholders 100%, or the maximum amount allowable under the Jobs and Growth Tax Relief Reconciliation Act of 2003, of income earned by the Fund for the period August 1, 2004 to July 31, 2005 may represent qualified dividend income. Final information will be provided in your 2005 1099-Div Form. 27 TRUSTEES Columbia Growth & Income Fund The Trustees/Directors serve terms of indefinite duration. The names, addresses and ages of the Trustees/Directors and officers of the Funds in the Columbia Funds Complex, the year each was first elected or appointed to office, their principal business occupations during at least the last five years, the number of portfolios overseen by each Trustee/Director and other directorships they hold are shown below. Each officer listed below serves as an officer of each Fund in the Columbia Funds Complex.
Name, address and age, Position with funds, Principal occupation(s) during past five years, Number of portfolios Year first elected or appointed to office(1) in Columbia Funds Complex overseen by trustee/director, Other directorships held DISINTERESTED TRUSTEES DOUGLAS A. HACKER (Age 49) Executive Vice President-Strategy of United Airlines (airline) since December, P.O. Box 66100 2002 (formerly President of UAL Loyalty Services (airline) from September, 2001 to Chicago, IL 60666 December, 2002; Executive Vice President and Chief Financial Officer of United Trustee (since 1996) Airlines from July, 1999 to September, 2001; Senior Vice President-Finance from March, 1993 to July, 1999). Oversees 101, Nash Finch Company (food distributor) ----------------------------------------------------------------------------------- JANET LANGFORD KELLY (Age 47) Partner, Zelle, Hofmann, Voelbel, Mason & Gette LLP (law firm); Adjunct Professor 9534 W. Gull Lake Drive of Law, Northwestern University, since September, 2004 (formerly Chief Richland, MI 49083-8530 Administrative Officer and Senior Vice President, Kmart Holding Corporation Trustee (since 1996) (consumer goods), from September, 2003 to March, 2004; Executive Vice President-Corporate Development and Administration, General Counsel and Secretary, Kellogg Company (food manufacturer), from September, 1999 to August, 2003; Senior Vice President, Secretary and General Counsel, Sara Lee Corporation (branded, packaged, consumer-products manufacturer) from January, 1995 to September, 1999). Oversees 101, None ----------------------------------------------------------------------------------- RICHARD W. LOWRY (Age 69) Private Investor since August, 1987 (formerly Chairman and Chief Executive Officer, 10701 Charleston Drive U.S. Plywood Corporation (building products manufacturer)). Oversees 103(3), None Vero Beach, FL 32963 Trustee (since 1995) ----------------------------------------------------------------------------------- CHARLES R. NELSON (Age 62) Professor of Economics, University of Washington, since January, 1976; Ford and Department of Economics Louisa Van Voorhis Professor of Political Economy, University of Washington, since University of Washington September, 1993 (formerly Director, Institute for Economic Research, University of Seattle, WA 98195 Washington from September, 2001 to June, 2003) Adjunct Professor of Statistics, Trustee (since 1981) University of Washington, since September, 1980; Associate Editor, Journal of Money Credit and Banking, since September, 1993; consultant on econometric and statistical matters. Oversees 101, None ----------------------------------------------------------------------------------- JOHN J. NEUHAUSER (Age 63) Academic Vice President and Dean of Faculties since August, 1999, Boston College 84 College Road (formerly Dean Boston College School of Management from September, 1977 to Chestnut Hill, MA 02467-3838 August, 1999). Oversees 103(3), Saucony, Inc. (athletic footwear) Trustee (since 1985) -----------------------------------------------------------------------------------
28 Columbia Growth & Income Fund
Name, address and age, Position with funds, Principal occupation(s) during past five years, Number of portfolios in Columbia Year first elected or appointed to office(1) Funds Complex overseen by trustee/director, Other directorships held DISINTERESTED TRUSTEES PATRICK J. SIMPSON (Age 61) Partner, Perkins Coie L.L.P. (law firm). Oversees 101, None 1120 N.W. Couch Street Tenth Floor Portland, OR 97209-4128 Trustee (since 2000) ----------------------------------------------------------------------------------- THOMAS E. STITZEL (Age 69) Business Consultant since 1999 (formerly Professor of Finance from 1975 to 1999, 2208 Tawny Woods Place College of Business, Boise State University); Chartered Financial Analyst. Boise, ID 83706 Oversees 101, None Trustee (since 1998) ----------------------------------------------------------------------------------- THOMAS C. THEOBALD (Age 68) Partner and Senior Advisor, Chicago Growth Partners (private equity investing) 8 Sound Shore Drive, since September, 2004 (formerly Managing Director, William Blair Capital Partners Suite 285 (private equity investing) from September, 1994 to September, 2004). Oversees 101, Greenwich, CT 06830 Anixter International (network support equipment distributor); Ventas, Inc. (real Trustee and Chairman of the Board(4) estate investment trust); Jones Lang LaSalle (real estate management services) and (since 1996) Ambac Financial Group (financial guaranty insurance) ----------------------------------------------------------------------------------- ANNE-LEE VERVILLE (Age 59) Retired since 1997 (formerly General Manager, Global Education Industry, IBM 359 Stickney Hill Road Corporation (computer and technology) from 1994 to 1997). Oversees 101, Hopkinton, NH 03229 Chairman of the Board of Directors, Enesco Group, Inc. (designer, importer and Trustee (since 1998) distributor of giftware and collectibles) ----------------------------------------------------------------------------------- RICHARD L. WOOLWORTH (Age 64) Retired since December 2003 (formerly Chairman and Chief Executive Officer, The 100 S.W. Market Street #1500 Regence Group (regional health insurer); Chairman and Chief Executive Officer, Portland, OR 97207 BlueCross BlueShield of Oregon; Certified Public Accountant, Arthur Young & Trustee (since 1991) Company). Oversees 101, Northwest Natural Gas Co. (natural gas service provider) ----------------------------------------------------------------------------------- INTERESTED TRUSTEE WILLIAM E. MAYER(2) (Age 65) Partner, Park Avenue Equity Partners (private equity) since February, 1999 399 Park Avenue (formerly Partner, Development Capital LLC from November 1996 to February, 1999). Suite 3204 Oversees 103(3), Lee Enterprises (print media), WR Hambrecht + Co. (financial New York, NY 10022 service provider); Reader's Digest (publishing); OPENFIELD Solutions (retail Trustee (since 1994) industry technology provider) -----------------------------------------------------------------------------------
(1)In December 2000, the boards of each of the former Liberty Funds and former Stein Roe Funds were combined into one board of trustees responsible for the oversight of both fund groups (collectively, the "Liberty Board"). In October 2003, the trustees on the Liberty Board were elected to the boards of the Columbia Funds (the "Columbia Board") and of the CMG Fund Trust (the "CMG Funds Board"); simultaneous with that election, Patrick J. Simpson and Richard L. Woolworth, who had been directors on the Columbia Board and trustees on the CMG Funds Board, were appointed to serve as trustees of the Liberty Board. The date shown is the earliest date on which a trustee/director was elected or appointed to the board of a Fund in the Columbia Funds Complex. (2)Mr. Mayer is an "interested person" (as defined in the Investment Company Act of 1940 (1940 Act)) by reason of his affiliation with WR Hambrecht + Co. (3)Messrs. Lowry, Neuhauser and Mayer also serve as directors/trustees of the Liberty All-Star Funds, currently consisting of 2 funds, which are advised by an affiliate of the Advisor. (4)Mr. Theobald was appointed as Chairman of the Board effective December 10, 2003. The Statement of Additional Information Includes additional information about the Trustees of the Funds and is available, without charge, upon request by calling 800-426-3750. 29 OFFICERS Columbia Growth & Income Fund
Name, address and age, Position with Columbia Funds, Year first elected or appointed to office Principal occupation(s) during past five years CHRISTOPHER L. WILSON (Age 48) Head of Mutual Funds since August, 2004 and Senior Vice President of the Advisor One Financial Center since January, 2005; President of the Columbia Funds, Liberty Funds and Stein Boston, MA 02111 Roe Funds since October, 2004; President and Chief Executive Officer of the President (since 2004) Nations Funds since January, 2005; President of the Galaxy Funds since April 2005; Director of Bank of America Global Liquidity Funds, plc since May 2005; Director of Banc of America Capital Management (Ireland), Limited since May 2005; Senior Vice President of BACAP Distributors LLC since January, 2005; Director of FIM Funding, Inc. since January, 2005; Senior Vice President of Columbia Funds Distributor, Inc. since January, 2005; Director of Columbia Funds Services, Inc. since January, 2005 (formerly President and Chief Executive Officer, CDC IXIS Asset Management Services, Inc. from September, 1998 to August, 2004). ----------------------------------------------------------------------------------- J. KEVIN CONNAUGHTON (Age 41) Treasurer of the Columbia Funds since October, 2003 and of the Liberty Funds, One Financial Center Stein Roe Funds and All-Star Funds since December, 2000; Vice President of the Boston, MA 02111 Advisor since April, 2003 (formerly President of the Columbia Funds, Liberty Funds Treasurer (since 2000) and Stein Roe Funds from February, 2004 to October, 2004; Chief Accounting Officer and Controller of the Liberty Funds and All-Star Funds from February, 1998 to October, 2000); Treasurer of the Galaxy Funds since September, 2002 (formerly Treasurer from December, 2002 to December, 2004 and President from February, 2004 to December, 2004 of the Columbia Management Multi-Strategy Hedge Fund, LLC; Vice President of Colonial Management Associates, Inc. from February, 1998 to October, 2000). ----------------------------------------------------------------------------------- MARY JOAN HOENE (Age 54) Senior Vice President and Chief Compliance Officer of the Columbia Funds, Liberty 40 West 57th Street Funds, Stein Roe Funds and All-Star Funds since August, 2004 (formerly Partner, New York, NY 10005 Carter, Ledyard & Milburn LLP from January, 2001 to August, 2004; Counsel, Carter, Senior Vice President and Chief Compliance Ledyard & Milburn LLP from November, 1999 to December, 2000; Vice President and Officer (since 2004) Counsel, Equitable Life Assurance Society of the United States from April, 1998 to November, 1999). ----------------------------------------------------------------------------------- MICHAEL G. CLARKE (Age 35) Chief Accounting Officer of the Columbia Funds, Liberty Funds, Stein Roe Funds and One Financial Center All-Star Funds since October, 2004 (formerly Controller of the Columbia Funds, Boston, MA 02111 Liberty Funds, Stein Roe Funds and All-Star Funds from May, 2004 to October, 2004; Chief Accounting Officer (since 2004) Assistant Treasurer from June, 2002 to May, 2004; Vice President, Product Strategy & Development of the Liberty Funds and Stein Roe Funds from February, 2001 to June, 2002; Assistant Treasurer of the Liberty Funds, Stein Roe Funds and the All- Star Funds from August, 1999 to February, 2001; Audit Manager, Deloitte & Touche LLP from May, 1997 to August, 1999). ----------------------------------------------------------------------------------- JEFFREY R. COLEMAN (Age 35) Controller of the Columbia Funds, Liberty Funds, Stein Roe Funds and All-Star One Financial Center Funds since October, 2004 (formerly Vice President of CDC IXIS Asset Management Boston, MA 02111 Services, Inc. and Deputy Treasurer of the CDC Nvest Funds and Loomis Sayles Funds Controller (since 2004) from February, 2003 to September, 2004; Assistant Vice President of CDC IXIS Asset Management Services, Inc. and Assistant Treasurer of the CDC Nvest Funds from August, 2000 to February, 2003; Tax Manager of PFPC, Inc. from November, 1996 to August, 2000). ----------------------------------------------------------------------------------- R. SCOTT HENDERSON (Age 46) Secretary of the Columbia Funds, Liberty Funds and Stein Roe Funds since December, One Financial Center 2004 (formerly Of Counsel, Bingham McCutchen from April, 2001 to September, Boston, MA 02111 2004; Executive Director and General Counsel, Massachusetts Pension Reserves Secretary (since 2004) Investment Management Board from September, 1997 to March, 2001). -----------------------------------------------------------------------------------
30 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 ------------------------------------ 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 Value ------------------------------------ Balanced Columbia Asset Allocation Columbia Balanced Columbia Liberty Fund Columbia Thermostat ------------------------------------ Specialty Columbia Real Estate Equity Columbia Technology Columbia Utilities ------------------------------------ Taxable Fixed-Income Columbia Federal Securities Columbia Fixed Income Securities* Columbia High Yield Columbia High Yield Opportunity Columbia Income* Columbia Intermediate Bond Columbia Intermediate Government Income* Columbia Quality Plus Bond Columbia Short Term Bond* Columbia Strategic Income ------------------------------------ Tax Exempt Columbia High Yield Municipal Columbia Intermediate Tax-Exempt Bond Columbia Managed Municipals* Columbia Tax-Exempt Columbia Tax-Exempt Insured 31 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's trustees have approved the merger of this fund, which is scheduled to occur before the end of 2005. 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 is the primary investment management division of Bank of America Corporation. Columbia Management entities furnish investment management services and advise institutional and mutual fund portfolios. Columbia Management Advisors, Inc. (CMA) is a SEC registered investment advisor and wholly owned subsidiary of Bank of America, N.A. CMA is part of Columbia Management. Columbia Management Advisors, Inc. will combine with Banc of America Capital Management, LLC on or about September 30, 2005. At that time, the newly combined advisor will undergo a name change to Columbia Management Advisors, LLC and will continue to operate as a SEC-registered investment advisor, wholly owned subsidiary of Bank of America, N.A. and part of Columbia Management. 32 IMPORTANT INFORMATION ABOUT THIS REPORT Columbia Growth & Income Fund TRANSFER AGENT Columbia Management Services, Inc. P.O. Box 8081 Boston MA 02266-8081 800-345-6611 DISTRIBUTOR Columbia Management Distributors, Inc. One Financial Center Boston MA 02111 INVESTMENT ADVISOR Columbia Management Advisors, LLC 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 funds use to determine how to vote proxies and a copy of the funds' 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 funds voted proxies relating to portfolio securities during the 12-month period ended June 30, is available from the SEC's website. Information regarding how the funds voted proxies relating to portfolio securities is also available from the funds' website. The funds file a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The funds' 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. Columbia Management is the primary investment management division of Bank of America Corporation. Columbia Management entities furnish investment management services and advise institutional and mutual fund portfolios. Columbia Management Advisors, Inc. (CMA) is a SEC registered investment advisor and wholly owned subsidiary of Bank of America, N.A. CMA is part of Columbia Management. Columbia Management Advisors, Inc. will combine with Banc of America Capital Management, LLC on or about September 30,2005. At that time, the newly combined advisor will undergo a name change to Columbia Management Advisors, LLC and will continue to operate as a SEC-registered investment advisor, wholly owned subsidiary of Bank of America, N.A. and part of Columbia Management. 33 photo: eDelivery Help your fund reduce printing and postage costs! Elect to get your shareholder reports by electronic delivery. With Columbia's eDelivery program, you receive an e-mail message when your shareholder report becomes available online. If your fund account is registered with Columbia Funds, you can sign up quickly and easily on our website at www.columbiafunds.com. Please note -- if you own your fund shares through a financial institution, contact the institution to see if it offers electronic delivery. If you own your fund shares through a retirement plan, electronic delivery may not be available to you. Columbia Growth & Income Fund Annual Report, July 31, 2005 PRSRT STD U.S. Postage PAID Holliston, MA Permit NO. 20 Logo: Columbia Management(R) (c) 2005 Columbia Management Distributor, Inc. One Financial Center, Boston, MA 02111-2621 800.345.6611 www.columbiafunds.com SHC-42/89449-0805 (09/05) 05/7533 ITEM 2. CODE OF ETHICS. (a) The registrant has, as of the end of the period covered by this report, adopted a code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party. (b) During the period covered by this report, there were not any amendments to a provision of the code of ethics adopted in 2(a) above. (c) During the period covered by this report, there were not any waivers or implicit waivers to a provision of the code of ethics adopted in 2(a) above. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. The registrant's Board of Trustees has determined that Douglas A. Hacker, Thomas E. Stitzel, Anne-Lee Verville and Richard L. Woolworth, each of whom are members of the registrant's Board of Trustees and Audit Committee, each qualify as an audit committee financial expert. Mr. Hacker, Mr. Stitzel, Ms. Verville and Mr. Woolworth are each independent trustees, as defined in paragraph (a)(2) of this item's instructions and collectively constitute the entire Audit Committee. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Fee information below is disclosed for the single series of the registrant whose report to stockholders is included in this annual filing. (a) Aggregate Audit Fees billed by the principal accountant for professional services rendered during the fiscal years ended July 31, 2005 and July 31, 2004 are approximately as follows: 2005 2004 $32,500 $30,000 Audit Fees include amounts related to the audit of the registrant's annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years. (b) Aggregate Audit-Related Fees billed by the principal accountant for professional services rendered during the fiscal years ended July 31, 2005 and July 31, 2004 are approximately as follows: 2005 2004 $5,400 $4,000 Audit-Related Fees include amounts for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant's financial statements and are not reported in Audit Fees above. In both fiscal years 2005 and 2004, Audit-Related Fees include certain agreed-upon procedures performed for semi-annual shareholder reports. In fiscal year 2005 Audit-Related Fees also include certain agreed-upon procedures related to the review of the registrant's anti-money laundering program. (c) Aggregate Tax Fees billed by the principal accountant for professional services rendered during the fiscal years ended July 31, 2005 and July 31, 2004 are approximately as follows: 2005 2004 $2,500 $2,400 Tax Fees in both fiscal years 2005 and 2004 consist primarily of the review of annual tax returns and include amounts for professional services by the principal accountant for tax compliance, tax advice and tax planning. (d) Aggregate All Other Fees billed by the principal accountant for professional services rendered during the fiscal years ended July 31, 2005 and July 31, 2004 are approximately as follows: 2005 2004 $0 $0 All Other Fees include amounts for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) above. None of the amounts described in paragraphs (a) through (d) above were approved pursuant to the "de minimus" exception under paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X. (e)(1) AUDIT COMMITTEE PRE-APPROVAL POLICIES AND PROCEDURES I. GENERAL OVERVIEW The Audit Committee of the registrant has adopted a formal policy (the "Policy") which sets forth the procedures and the conditions pursuant to which the Audit Committee will pre-approve (i) all audit and non-audit (including audit related, tax and all other) services provided by the registrant's independent auditor to the registrant and individual funds (collectively "Fund Services"), and (ii) all non-audit services provided by the registrant's independent auditor to the funds' adviser or a control affiliate of the adviser, that relate directly to the funds' operations and financial reporting (collectively "Fund-related Adviser Services"). A "control affiliate" is an entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the funds, and the term "adviser" is deemed to exclude any unaffiliated sub-adviser whose role is primarily portfolio management and is sub-contracted or overseen by another investment adviser. The adviser and control affiliates are collectively referred to as "Adviser Entities." The Audit Committee uses a combination of specific (on a case-by-case basis as potential services are contemplated) and general (pre-determined list of permitted services) pre-approvals. Unless a type of service has received general pre-approval, it will require specific pre-approval by the Audit Committee if it is to be provided by the independent auditor. The Policy does not delegate the Audit Committee's responsibilities to pre-approve services performed by the independent auditor to management. II. GENERAL PROCEDURES On an annual basis, the Fund Treasurer and/or Director of Trustee Administration shall submit to the Audit Committee a schedule of the types of Fund Services and Fund-related Adviser Services that are subject to general pre-approval. These schedules will provide a description of each type of service that is subject to general pre-approval and, where possible, will provide estimated fees for each instance of providing each service. This general pre-approval and related fees (where provided) will generally cover a one-year period (for example, from June 1 through May 31 of the following year). The Audit Committee will review and approve the types of services and review the projected fees for the next one-year period and may add to, or subtract from, the list of general pre-approved services from time to time, based on subsequent determinations. This approval acknowledges that the Audit Committee is in agreement with the specific types of services that the independent auditor will be permitted to perform. The fee amounts will be updated to the extent necessary at other regularly scheduled meetings of the Audit Committee. In addition to the fees for each individual service, the Audit Committee has the authority to implement a fee cap on the aggregate amount of non-audit services provided to an individual fund. If, subsequent to general pre-approval, a fund, its investment adviser or a control affiliate determines that it would like to engage the independent auditor to perform a service that requires pre-approval and that is not included in the general pre-approval list, the specific pre-approval procedure shall be as follows: o A brief written request shall be prepared by management detailing the proposed engagement with explanation as to why the work is proposed to be performed by the independent auditor; o The request should be addressed to the Audit Committee with copies to the Fund Treasurer and/or Director of Trustee Administration; o The Fund Treasurer and/or Director of Trustee Administration will arrange for a discussion of the service to be included on the agenda for the next regularly scheduled Audit Committee meeting, when the Committee will discuss the proposed engagement and approve or deny the request. o If the timing of the project is critical and the project needs to commence before the next regularly scheduled meeting, the Chairperson of the Audit Committee may approve or deny the request on behalf of the Audit Committee, or, in the Chairperson's discretion, determine to call a special meeting of the Audit Committee for the purpose of considering the proposal. Should the Chairperson of the Audit Committee be unavailable, any other member of the Audit Committee may serve as an alternate for the purpose of approving or denying the request. Discussion with the Chairperson (or alternate, if necessary) will be arranged by the Fund Treasurer and/or Director of Trustee Administration. The independent auditor will not commence any such project unless and until specific approval has been given. III. CERTAIN OTHER SERVICES PROVIDED TO ADVISER ENTITIES The Audit Committee recognizes that there are cases where services proposed to be provided by the independent auditor to the adviser or control affiliates are not Fund-related Adviser Services within the meaning of the Policy, but nonetheless may be relevant to the Audit Committee's ongoing evaluation of the auditor's independence and objectivity with respect to its audit services to the funds. As a result, in all cases where an Adviser Entity engages the independent auditor to provide audit or non-audit services that are not Fund Services or Fund-related Adviser Services, were not subject to pre-approval by the Audit Committee, and the projected fees for any such engagement (or the aggregate of all such engagements during the period covered by the Policy) exceeds a pre-determined threshold established by the Audit Committee; the independent auditor, Fund Treasurer and/or Director of Trustee Administration will notify the Audit Committee not later than its next meeting. Such notification shall include a general description of the services provided, the entity that is to be the recipient of such services, the timing of the engagement, the entity's reasons for selecting the independent auditor, and the projected fees. Such information will allow the Audit Committee to consider whether non-audit services provided to the adviser and Adviser Entities, which were not subject to Audit Committee pre-approval, are compatible with maintaining the auditor's independence with respect to the Funds. IV. REPORTING TO THE AUDIT COMMITTEE The Fund Treasurer or Director of Trustee Administration shall report to the Audit Committee at each of its regular meetings regarding all Fund Services or Fund-related Adviser Services initiated since the last such report was rendered, including: o A general description of the services, and o Actual billed and projected fees, and o The means by which such Fund Services or Fund-related Adviser Services were pre-approved by the Audit Committee. In addition, the independent auditor shall report to the Audit Committee annually, and no more than 90 days prior to the filing of audit reports with the SEC, all non-audit services provided to entities in the funds' "investment company complex," as defined by SEC rules, that did not require pre-approval under the Policy. V. AMENDMENTS; ANNUAL APPROVAL BY AUDIT COMMITTEE The Policy may be amended from time to time by the Audit Committee. Prompt notice of any amendments will be provided to the independent auditor, Fund Treasurer and Director of Trustee Administration. The Policy shall be reviewed and approved at least annually by the Audit Committee. ***** (e)(2) The percentage of services described in paragraphs (b) through (d) of this Item approved pursuant to the "de minimis" exception under paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X during both fiscal years ended July 31, 2005 and July 31, 2004 was zero. (f) Not applicable. (g) All non-audit fees billed by the registrant's accountant for services rendered to the registrant for the fiscal years ended July 31, 2005 and July 31, 2004 are disclosed in (b) through (d) of this Item. During the fiscal years ended July 31, 2005 and July 31, 2004, there were no Audit-Related Fees or Tax Fees that were approved for services to the investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant under paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X. During the fiscal years ended July 31, 2005 and July 31, 2004, All Other Fees that were approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X were approximately $95,500 and $95,000, respectively. For both fiscal years, All Other Fees consist primarily of internal controls reviews of the registrant's transfer agent. The percentage of Audit-Related Fees, Tax Fees and All Other Fees required to be approved under paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X that were approved under the "de minimis" exception during both fiscal years ended July 31, 2005 and July 31, 2004 was zero. (h) The registrant's Audit Committee of the Board of Directors has considered whether the provision of non-audit services that were rendered to the registrant's adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, is compatible with maintaining the principal accountant's independence. The Audit Committee determined that the provision of such services is compatible with maintaining the principal accountant's independence. 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 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, has concluded that such controls and procedures are adequately designed to ensure that information required to be disclosed by the registrant in Form N-CSR is accumulated and communicated to the registrant's management, including the principal executive officer and principal financial officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. (b) There were no changes in the registrant's internal control over financial reporting that occurred during the registrant's 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 attached hereto as Exhibit 99.CODE ETH. (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 September 26, 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 September 26, 2005 -------------------------------------------------------------------------- By (Signature and Title) /s/ J. Kevin Connaughton ------------------------------------------------------ J. Kevin Connaughton, Treasurer Date September 26, 2005 -------------------------------------------------------------------------- EX-99.CODE ETH 2 file002.txt CODE OF ETHICS COLUMBIA MANAGEMENT GROUP FAMILY OF FUNDS CODE OF ETHICS FOR PRINCIPAL EXECUTIVE AND SENIOR FINANCIAL OFFICERS I. COVERED OFFICERS/PURPOSE OF THE CODE This Code of Ethics (the "Code") for the investment companies within the Columbia Management Group fund complex (collectively the "Funds" and each, a "Fund") applies to the Funds' Principal Executive Officer, Principal Financial Officer, Principal Accounting Officer, and Director of Trustee Administration (the "Covered Officers") for the purpose of promoting: o honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships; o full, fair, accurate, timely and understandable disclosure in reports and documents that a Fund files with, or submits to, the Securities and Exchange Commission ("SEC"), and in other public communications made by a Fund; o compliance with applicable laws and governmental rules and regulations; o the prompt internal reporting of violations of the Code to an appropriate person or persons identified in the Code; and o accountability for adherence to the Code. Each Covered Officer shall adhere to a high standard of business ethics and shall be sensitive to situations that may give rise to actual or apparent conflicts of interest. II. ADMINISTRATION OF THE CODE The Boards of Trustees and Boards of Directors of the Funds (collectively, the "Board") shall designate an individual to be primarily responsible for the administration of the Code (the "Code Officer"). The Code shall be administered by the Columbia Management Group Compliance Department. In the absence of the Code Officer, his or her designee shall serve as the Code Officer, but only on a temporary basis. Each Fund has designated a chief legal officer (the "Chief Legal Officer") for purposes of the Sarbanes-Oxley Act of 2002 and the rules promulgated thereunder. The Chief Legal Officer of a Fund shall assist the Fund's Code Officer in administration of this Code. The Chief Legal Officer shall be responsible for applying this Code to specific situations in which questions are presented under it (in consultation with Fund counsel, where appropriate) and has the authority to interpret this Code in any particular situation. However, any waivers sought by a Covered Officer must be approved by each Audit Committee of the Funds (collectively, the "Audit Committee"). III. MANAGING CONFLICTS OF INTEREST OVERVIEW. A "conflict of interest" occurs when a Covered Officer's private interest interferes with the interests of, or his/her service to, a Fund. For example, a conflict of interest would arise if a Covered Officer, or a family member, receives improper personal benefits as a result of the Covered Officer's position with a Fund. Certain conflicts of interest arise out of the relationships between Covered Officers and a Fund and already are subject to conflict of interest provisions in the Investment Company Act of 1940 (the "Company Act") and the Investment Advisers Act of 1940 (the "Advisers Act"). For example, Covered Officers may not individually engage in certain transactions (such as the purchase or sale of securities or other property) with a Fund because of their status as "affiliated persons" of the Fund. A Fund's and its investment adviser's compliance programs and procedures are designed to prevent, or identify and correct, violations of those provisions. This Code does not, and is not intended to, repeat or replace those programs and procedures, and such conflicts fall outside of the parameters of this Code. Although typically not presenting an opportunity for improper personal benefit, conflicts may arise from, or as a result of, the contractual relationship between a Fund and its investment adviser, administrator, principal underwriter, pricing and bookkeeping agent and/or transfer agent (each, a "Service Provider") of which the Covered Officers are also officers or employees. As a result, this Code recognizes that the Covered Officers will, in the normal course of their duties (whether formally for a Fund or for a Service Provider, or for both), be involved in establishing policies and implementing decisions that will have different effects on the Service Provider and a Fund. The participation of the Covered Officers in such activities is inherent in the contractual relationship between the Fund and the Service Provider and is consistent with the performance by the Covered Officers of their duties as officers of a Fund. In addition, it is recognized by the Board that the Covered Officers may also be officers or employees of one or more other investment companies covered by this or other codes. Other conflicts of interest are covered by the Code, even if such conflicts of interest are not subject to provisions of the Company Act and the Advisers Act. The following list provides examples of conflicts of interest under the Code, but Covered Officers should keep in mind that these examples are not exhaustive. The overarching principle is that the personal interest of a Covered Officer should not be placed improperly before the interest of a Fund. Each Covered Officer must: o not use personal influence or personal relationships improperly to influence investment decisions or financial reporting by a Fund whereby the Covered Officer or an immediate family member would benefit personally to the detriment of a Fund; and o not cause a Fund to take action, or fail to take action, for the individual personal benefit of the Covered Officer or an immediate family member rather than the benefit of the Fund.1. There are some conflict of interest situations that must be approved by the Code Officer, after consultation with the Chief Legal Officer. Those situations include, but are not limited to,: o service as director on the board of any public or private company; o the receipt of any gifts in excess of $100 in the aggregate from a third party that does or seeks to do business with the Funds during any 12-month period; o the receipt of any entertainment from any company with which a Fund has current or prospective business dealings, unless such entertainment is business-related, reasonable in cost, appropriate as to time and place, and not so frequent as to raise any question of impropriety; o any material ownership interest in, or any consulting or employment relationship with, any Fund service providers, other than its investment adviser, principal underwriter, administrator or any affiliated person thereof; o a direct or indirect material financial interest in commissions, transaction charges or spreads paid by a Fund for effecting portfolio transactions or for selling or redeeming shares other than an interest arising from the Covered Officer's employment, such as compensation or equity ownership. IV. DISCLOSURE AND COMPLIANCE Each Covered Officer shall: o be familiar with the disclosure requirements generally applicable to the Funds; o not knowingly misrepresent, or cause others to misrepresent, facts about any Fund to others, whether within or outside the Fund, - ----------------- (1) For purposes of this Code, personal trading activity of the Covered Officers shall be monitored in accordance with the Columbia Management Group Code of Ethics. Each Covered Officer shall be considered an "Access Person" under such Code. The term "immediate family" shall have the same meaning as provided in such Code. including to the Fund's trustees and auditors, and to governmental regulators and self-regulatory organizations; o to the extent appropriate within his/her area of responsibility, consult with other officers and employees of the Funds and the adviser with the goal of promoting full, fair, accurate, timely and understandable disclosure in the reports and documents the Funds file with, or submit to, the SEC and in other public communications made by the Funds; and o promote compliance with the standards and restrictions imposed by applicable laws, rules and regulations. V. REPORTING AND ACCOUNTABILITY Each Covered Officer must: o upon adoption of the Code (or after becoming a Covered Officer), affirm in writing to the Board that he/she has received, read and understands the Code; o annually affirm to the Board compliance with the requirements of the Code; o not retaliate against any other Covered Officer or any employee of the Funds or their affiliated persons for reports of potential violations that are made in good faith; o notify the Chief Legal Officer and the Code Officer promptly if he/she knows of any violation of this Code; and o respond to the trustee and officer questionnaires circulated periodically in connection with the preparation of disclosure documents for the Funds. The Code Officer shall maintain records of all activities related to this Code. The Funds will follow the procedures set forth below in investigating and enforcing this Code: o The Chief Legal Officer and/or the Code Officer will take all appropriate action to investigate any potential violation reported to him/her; o If, after such investigation, the Chief Legal Officer and the Code Officer believes that no violation has occurred, the Code Officer will notify the person(s) reporting the potential violation, and no further action is required; o Any matter that the Chief Legal Officer and/or the Code Officer believes is a violation will be reported to the Audit Committee; o If the Audit Committee concurs that a violation has occurred, it will inform and make a recommendation to the Board, which will consider appropriate action, which may include review of, and appropriate modifications to, applicable policies and procedures; notification to the Chief Executive Officer of Columbia Management Group; or a recommendation to sanction or dismiss the Covered Officer; o The Audit Committee will be responsible for granting waivers in its sole discretion; o Any changes to or waivers of this Code will, to the extent required, be disclosed as provided by SEC rules. The Chief Legal Officer shall: o report to the Audit Committee quarterly any approvals provided in accordance with Section III of this Code; and o report to the Audit Committee quarterly any violations of, or material issues arising under, this Code. VI. OTHER POLICIES AND PROCEDURES This Code shall be the sole code of ethics adopted by the Funds for the purposes of Section 406 of the Sarbanes-Oxley Act and the rules and forms applicable to registered investment companies thereunder. Insofar as other polices or procedures of the Funds or the Funds' Service Providers govern or purport to govern the behavior or activities (including, but not limited to, personal trading activities) of the Covered Officers who are subject to this Code, they are superseded by this Code to the extent that they overlap or conflict with the provisions of this Code. The Funds' and their investment advisers' and principal underwriter's codes of ethics under Rule 17j-1 under the Company Act and any policies and procedures of the Service Providers are separate requirements applicable to the Covered Officers and are not part of this Code. VII. AMENDMENTS All material amendments to this Code must be approved or ratified by the Board, including a majority of independent directors. VIII. CONFIDENTIALITY All reports and records prepared or maintained pursuant to this Code will be considered confidential and shall be maintained and protected accordingly. Except as otherwise required by law or this Code, such matters shall not be disclosed to anyone other than the Board, the Covered Officers, the Chief Legal Officer, the Code Officer, outside audit firms and legal counsel to the Funds, and senior management of Columbia Management Group. IX. INTERNAL USE The Code is intended solely for the internal use by the Funds and does not constitute an admission, by or on behalf of any Fund, as to any fact, circumstance, or legal conclusion. EX-99.CERT 3 file003.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) and internal control over financial reporting (as defined in Rule 30a-3(d) 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) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) 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 (d) 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: September 26, 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) and internal control over financial reporting (as defined in Rule 30a-3(d) 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) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) 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 (d) 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: September 26, 2005 /s/ J. Kevin Connaughton ------------------------------- J. Kevin Connaughton, Treasurer EX-99.906CERT 4 file004.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 July 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: September 26, 2005 /s/ Christopher L. Wilson ----------------------------------- Christopher L. Wilson, President Date: September 26, 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-----