N-CSR 1 dncsr.txt COLUMBIA FUNDS TRUST VI N-CSR 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) Russell Kane, Esq. Columbia Management Group, Inc. One Financial Center Boston, MA 02111 ------------------------------------------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: 1-617-772-3363 -------------- Date of fiscal year end: 08/31/2003 ---------- Date of reporting period: 08/31/2003 ---------- Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270,30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles. A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C, ss. 3507. Item 1. Report of Stockholders [PHOTO] Columbia Newport Asia Pacific Fund Annual Report August 31, 2003 We are now Columbia Funds! INSIDE -- Management's discussion of the changes effective as of October 13, 2003. President's Message [PHOTO] Dear Shareholder: As you know, the fund you invest in has long been associated with a larger investment management organization. In the 1990s, it was part of Liberty Financial, whose asset management companies included Colonial, Stein Roe and Newport. In 2001, your fund became part of the asset management division of FleetBoston Financial Corp., which you know as Columbia Management Group (CMG). Earlier this year, six of the asset management firms that were brought together under the CMG umbrella were consolidated and renamed Columbia Management Advisors, Inc. On October 13, 2003, we took the natural next step forward in this process by changing the name of our funds from Liberty to Columbia. For example, Liberty Newport Asia Pacific Fund was changed to Columbia Newport Asia Pacific Fund. We have also modified certain fund names that exist under both the Liberty and Columbia brands. As a result of these fund name changes, most fund CUSIP numbers have changed. (A CUSIP is a unique identification number assigned to each class of a mutual fund by the Committee on Uniform Security Identification Procedures.) However, ticker symbols have not changed. A list of new fund names and other information related to these changes are available online at www.columbiafunds.com, our new website address. A consolidated identity The consolidation of our management under a single organization and the renaming of our funds are part of a larger effort to create a consistent identity. Having taken these additional steps, we believe it will be easier for our shareholders to do business with us. All funds will be listed under the "Columbia" name in the mutual fund listings section of your newspaper (as long as they meet the newspaper's listing requirements). All service inquiries will be handled by Columbia Funds Services, Inc. the new name of our shareholder service organization. What will not change is our commitment to our shareholders. We remain committed to providing the best possible customer service and to offering a wide variety of mutual funds to help you pursue your long-term financial goals. Should you have questions, please call shareholder services at 800-345-6611 or visit our website at its new address www.columbiafunds.com. In the report that follows, your portfolio manager talks in depth about investment strategies and other factors that affected your fund's performance during the period. We encourage you to read the report carefully. As always, we thank you for your business and we look forward to continuing to serve your investment needs. Sincerely, /s/ Joseph R. Palumbo Joseph R. Palombo President Net asset value per share as of 08/31/03 ($) Class A 14.48 Class B 13.99 Class C 13.98 Class Z 14.60
Past performance cannot predict future investment results. Returns and value of an investment will vary, resulting in a gain or a loss on sale. All results shown assume reinvestment of distributions. [LOGO] Not FDIC Insured May Lose Value No Bank Guarantee Economic and market conditions change frequently. There is no assurance that the trends described in this report will continue or commence. Performance Information Value of a $10,000 investment 8/19/98 - 8/31/03 Performance of a $10,000 investment 8/19/98 - 8/31/03 ($)
without with sales sales charge charge ---------------------- Class A 15,896 14,982 ---------------------- Class B 15,328 15,228 ---------------------- Class C 15,318 15,318 ---------------------- Class Z 16,028 n/a
[CHART] Liberty Newport Liberty Newport Asia Pacific - A Asia Pacific - A MSCI Without With Sales AC Asia Sales Charge Charge Pacific Free ---------------- ---------------- ------------ $10,000 $ 9,425 8/20/1998 - 8/31/1998 9,470 8,925 $10,000 9/01/1998 - 9/30/1998 10,200 9,614 10,038 10/01/1998 - 10/31/1998 12,130 11,433 11,744 11/01/1998 - 11/30/1998 12,870 12,130 12,387 12/01/1998 - 12/31/1998 13,297 12,533 12,768 1/01/1999 - 1/31/1999 12,914 12,172 12,871 2/01/1999 - 2/28/1999 13,105 12,352 12,596 3/01/1999 - 3/31/1999 14,960 14,100 14,171 4/01/1999 - 4/30/1999 17,177 16,189 15,235 5/01/1999 - 5/31/1999 16,299 15,362 14,446 6/01/1999 - 6/30/1999 19,161 18,059 15,959 7/01/1999 - 7/31/1999 20,654 19,466 16,951 8/01/1999 - 8/31/1999 21,459 20,225 16,888 9/01/1999 - 9/30/1999 21,702 20,454 17,368 10/01/1999 - 10/31/1999 22,709 21,403 18,000 11/01/1999 - 11/30/1999 26,379 24,862 18,965 12/01/1999 - 12/31/1999 29,444 27,751 20,213 1/01/2000 - 1/31/2000 27,562 25,977 19,501 2/01/2000 - 2/29/2000 27,871 26,268 19,020 3/01/2000 - 3/31/2000 28,933 27,269 20,239 4/01/2000 - 4/30/2000 26,540 25,014 18,713 5/01/2000 - 5/31/2000 24,775 23,351 17,643 6/01/2000 - 6/30/2000 26,093 24,593 18,876 7/01/2000 - 7/31/2000 24,478 23,071 17,115 8/01/2000 - 8/31/2000 25,222 23,772 17,833 9/01/2000 - 9/30/2000 23,628 22,270 16,674 10/01/2000 - 10/31/2000 21,599 20,357 15,622 11/01/2000 - 11/30/2000 20,525 19,345 15,058 12/01/2000 - 12/31/2000 20,043 18,890 14,465 1/01/2001 - 1/31/2001 20,921 19,718 14,854 2/01/2001 - 2/28/2001 19,527 18,404 14,177 3/01/2001 - 3/31/2001 17,991 16,956 13,364 4/01/2001 - 4/30/2001 19,144 18,043 14,102 5/01/2001 - 5/31/2001 19,012 17,918 14,077 6/01/2001 - 6/30/2001 18,112 17,071 13,469 7/01/2001 - 7/31/2001 17,047 16,067 12,616 8/01/2001 - 8/31/2001 16,214 15,281 12,367 9/01/2001 - 9/30/2001 14,129 13,316 10,982 10/01/2001 - 10/31/2001 14,656 13,813 11,198 11/01/2001 - 11/30/2001 15,643 14,744 11,732 12/01/2001 - 12/31/2001 15,709 14,806 11,467 1/01/2002 - 1/31/2002 15,489 14,599 11,040 2/01/2002 - 2/28/2002 15,412 14,526 11,342 3/01/2002 - 3/31/2002 16,279 15,343 12,001 4/01/2002 - 4/30/2002 16,599 15,644 12,438 5/01/2002 - 5/31/2002 16,620 15,664 12,925 6/01/2002 - 6/30/2002 15,884 14,971 12,268 7/01/2002 - 7/31/2002 14,809 13,957 11,494 8/01/2002 - 8/31/2002 14,644 13,802 11,408 9/01/2002 - 9/30/2002 13,502 12,726 10,718 10/01/2002 - 10/31/2002 13,776 12,984 10,434 11/01/2002 - 11/30/2002 14,248 13,429 10,868 12/01/2002 - 12/31/2002 13,700 12,912 10,511 1/01/2003 - 1/31/2003 13,216 12,456 10,295 2/01/2003 - 2/28/2003 12,974 12,228 10,212 3/01/2003 - 3/31/2003 12,699 11,969 9,877 4/01/2003 - 4/30/2003 12,732 12,000 10,024 5/01/2003 - 5/31/2003 13,424 12,652 10,579 6/01/2003 - 6/30/2003 14,126 13,314 11,277 7/01/2003 - 7/31/2003 14,839 13,986 11,771 8/01/2003 - 8/31/2003 15,896 14,982 12,786 Mutual fund performance changes over time. Please visit www.columbiafunds.com for daily performance updates. Past performance is no guarantee of future investment results. The principal value and investment returns will fluctuate, resulting in a gain or loss on sale. The Morgan Stanley Capital International (MSCI) All Country (AC) Asia Pacific Free Index is an unmanaged index that tracks the performance of stock traded on stock exchanges in Pacific Basin countries, including Australia, Hong Kong, India, Indonesia, Japan, Malaysia, New Zealand, the People's Republic of China, the Philippines, Singapore, South Korea, Taiwan and Thailand. Unlike the fund, indices are not investments do not incur fees or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index. Index performance is from August 31, 1998. Average annual total return as of 08/31/03 (%) Share class A B C Z Inception 8/19/98 8/19/98 8/19/98 2/1/01 ----------------------------------------------------------------- without with without with without with without sales sales sales sales sales sales sales charge charge charge charge charge charge charge ----------------------------------------------------------------- 2-month (cumulative) 12.51 6.04 12.37 7.37 12.38 11.38 12.57 ----------------------------------------------------------------- 1-year 8.55 2.30 7.78 2.78 7.79 6.79 8.79 ----------------------------------------------------------------- 5-year 10.91 9.61 10.11 9.84 10.10 10.10 11.10 ----------------------------------------------------------------- Life 9.65 8.36 8.86 8.72 8.84 8.84 9.83 -----------------------------------------------------------------
Average annual total return as of 06/30/03 (%) Share class A B C Z ----------------------------------------------------------------- without with without with without with without sales sales sales sales sales sales sales charge charge charge charge charge charge charge ----------------------------------------------------------------- 2-month (cumulative) 10.95 4.57 10.77 5.77 10.77 9.77 10.95 ----------------------------------------------------------------- 1-year -11.06 -16.17 -11.64 -16.06 -11.71 -12.59 -10.86 ----------------------------------------------------------------- Life 7.37 6.07 6.59 6.27 6.58 6.58 7.54 -----------------------------------------------------------------
Past performance is no guarantee of future investment results. The principal value and investment returns will fluctuate, resulting in a gain or loss on sale. All results shown assume reinvestment of distributions, if any. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The "with sales charge" returns include the maximum 5.75% sales charge for class A shares, the appropriate maximum class B contingent deferred sales charge for the holding period after purchase as follows: first year - 5%, second year - 4%, third year - 3%, fourth year - 3%, fifth year - 2%, sixth year - 1%, thereafter - 0%, and the class C contingent deferred sales charge of 1% for the first year only. Performance for different share classes will vary based on differences in sales charges and fees associated with each class. Performance results reflect any voluntary waivers or reimbursement of fund expenses by the advisor or its affiliates. Absent these waivers or reimbursement arrangements, performance results would have been lower. Class Z share (newer class shares) performance information includes returns of the fund's class A shares (the oldest existing fund class) for periods prior to the inception date of the newer class shares. Returns are not restated to reflect any expense differential, e.g., 12b-1 fees, between class A and the newer class shares. Had the expense differential been reflected, the returns for the period prior to the inception of class Z shares would have been higher. 1 Portfolio Managers' Report Top 5 countries as of 08/31/03 (%) Japan 47.1 Australia 9.9 Hong Kong 9.0 India 7.1 Taiwan 5.9 Calculated as a percentage of total investments. Top 10 holdings as of 08/31/03 (%) NTT DoCoMo 3.7 Taiwan Semiconductor Manufacturing 3.3 Samsung Electronics 2.5 Honda Motor 2.5 Hutchison Whampoa 2.4 Housing Development Finance 2.3 Matsushita Electric 2.3 Canon 2.3 China Mobile 2.2 Infosys Technologies 2.1 Top 10 holdings are calculated as a percentage of net assets. Since the fund is actively managed, there can be no guarantee the fund will continue to maintain the same country weightings or portfolio holdings in the future. Bought -------------------------------- Nikko Cordial Corp. (0.5% of net assets) Citigroup has a stake in this brokerage house, which has reduced costs over the past few years. We expect the company to do well as the Japanese economy and equity markets recover. Sold -------------------------------- Hong Kong & China Gas Co., Ltd. (0.2% of net assets) While earnings in its Hong Kong business are strong, it will be a long time before the company's investments in mainland China pay off. Therefore, we reduced this position.
The Board of Trustees for Columbia Newport Asia Pacific Fund approved the change of the fund's fiscal year end from June 30 to August 31. As a result, this report covers the two-month period since the last annual report. The next report you receive will be a report for the six-month period through February 2004. For the two-month period ended August 31, 2003, class A shares of Columbia Newport Asia Pacific Fund returned 12.51% without sales charge. The fund fell behind its benchmark, the MSCI AC Asia Pacific Free Index, which returned 13.38% for the same period. The fund was underweight in Japan relative to the MSCI Index, which contributed to its slight underperformance. A significant commitment to Japan Although the fund had a below-average stake in Japan, it represented our largest country position at 47.1% of total investments. By comparison, Japan represented 61.5% of the MSCI AC Asia Pacific Free Index at the end of the period. Over the two months covered by this report, the Japanese economy and stock market continued to strengthen--a trend that began in late spring 2003. In addition, we started to see an upturn in private capital spending--the first in three years. We believe this shift in spending could be positive for the entire Japanese economy. In this more favorable environment, we emphasized companies that we believe should benefit from an economic recovery. Some of these were in the financial sector, where we invested in Millea Holdings, Inc., a property and casualty insurance company, Nikko Cordial Corp., a brokerage house, and also purchased a position in Mitsubishi Tokyo Financial Group, Inc., which provides domestic and international banking services (0.5%, 0.5% and 0.4% of net assets, respectively)./1/ Other strong performers included Mitsubishi Estate Co., Ltd., a real estate company, and Yamada Denki Co., Ltd., a home electrical appliance retailer (0.8% and 1.4% of net assets, respectively). Regional markets were mostly positive Outside Japan, investments in Hong Kong, India and Taiwan did well. In Hong Kong, a recovering economy and government policy ------------ /1/ Holdings are disclosed as of August 31, 2003 and are subject to change. 2 changes related to property ownership sparked a rally in the real estate sector. As a result, our holdings in real estate companies Sun Hung Kai Properties Ltd. and Swire Pacific Ltd. (2.0% and 1.2% of net assets, respectively) helped boost total return. In India, we added Bajaj Auto Ltd. (0.3% of net assets), a motorcycle manufacturer. As India's consumer market expands, we believe Bajaj could be an important position in the portfolio. Earlier in 2003, we weathered a steep decline in Infosys Technologies Ltd. (2.1% of net assets), a technology outsourcing company that significantly held back the fund. As the outlook for the technology sector turned positive, Infosys rebounded, and its performance over the two-month period benefited results. Ranbaxy Laboratories Ltd. (0.6% of net assets), a generic drug manufacturer, was also helpful. Ranbaxy has been buoyed by the global emphasis on containing health care costs. Investments in Taiwan also had a positive influence on total return. The Taiwanese economy has been improving, valuations are at historically low levels and the government has instituted new policies that should attract foreign investment. A positive outlook In general, we are positive about the prospects for the fund. In the Asia/Pacific region, the "dividend culture" appears to be growing, and companies are eager to make dividend payments to shareholders. Interest rates are at historically low levels, and the debt-to-equity ratio for many companies is at a 25-year low. There are several important elections in 2004, and in the past, the election season has provided stimulus for Asian economies. We believe the fund is well positioned to take advantage of all these developments. /s/ Chris Legallet /s/ Jamie Chui Chris Legallet and Jamie Chui are portfolio co-managers of Columbia Newport Asia Pacific Fund. Mr. Legallet has co-managed the fund since it commenced operations in August 1998. Ms. Chui has co-managed the fund since July 2002. Top 5 sectors as of 08/31/03 (%) [CHART] Information technology 21.9 Consumer discretionary 17.3 Financials 13.0 Telecommunication services 9.6 Health care 9.1 Sectors are calculated as a percentage of net assets. Since the fund is actively managed, there can be no guarantee the fund will continue to maintain the same sectors in the future. There are specific risks involved when investing in foreign stocks, such as currency exchange rate fluctuations, economic change, instability of emerging countries and political developments. In addition, concentration of investments in a single region or country may result in greater volatility. 3 Investment Portfolio August 31, 2003
Common Stocks - 97.8% Shares Value -------------------------------------------------------------- CONSUMER DISCRETIONARY - 17.3% Auto Components - 2.2% Bridgestone Corp. 7,000 $ 97,485 Denso Corp. 7,300 136,384 ------------- 233,869 ------------- Automobiles - 4.7% Bajaj Auto Ltd. 1,700 26,986 Honda Motor Co., Ltd. 6,500 264,601 PT Astra International (a) 116,000 51,950 Toyota Motor Corp. 5,600 154,536 ------------- 498,073 ------------- Hotels, Restaurants & Leisure - 1.1% Genting Berhad 27,000 110,842 ------------- Household Durables - 0.3% Rinnai Corp. 1,400 32,155 ------------- Internet & Catalog Retail - 0.2% Belluna Co., Ltd. 600 23,653 ------------- Media - 0.8% Singapore Press Holdings Ltd. 8,400 89,591 ------------- Multi-Line Retail - 1.6% Don Quijote Co., Ltd. 1,600 79,530 Seiyu (a) 38,000 89,883 ------------- 169,413 ------------- Specialty Retail - 3.9% Matsushita Electric Industrial Co., Ltd. 19,000 242,293 USS Co., Ltd. 460 26,571 Yamada Denki Co., Ltd. 5,400 146,240 ------------- 415,104 ------------- Textiles, Apparel & Luxury Goods - 2.5% Li & Fung Ltd. 126,000 214,867 Sanyo Shokai Ltd. 8,200 51,441 ------------- 266,308 ------------- -------------------------------------------------------------- CONSUMER STAPLES - 8.9% Beverages - 1.8% Foster's Group Ltd. 66,102 194,872 ------------- Food & Drug Retailing - 3.9% Lawson, Inc. 3,400 99,070 Seven-Eleven Japan Co., Ltd. 3,000 82,016 Sugi Pharmacy Co., Ltd. 500 26,353 Woolworths Ltd. 22,496 171,787 Yaoko Co., Ltd. 3,300 42,139 ------------- 421,365 -------------
Shares Value ---------------------------------------------------------- Food Products - 2.1% Katokichi Co., Ltd. 7,900 $ 126,538 Thai Union Frozen Products Public Co., Ltd. 35,000 26,405 Yakult Honsha Co., Ltd. 5,000 68,989 ------------- 221,932 ------------- Household Products - 1.1% Kao Corp. 6,000 113,125 ------------- ---------------------------------------------------------- ENERGY - 1.5% Oil & Gas - 1.5% Tokyo Gas Co., Ltd. 51,000 155,161 ------------- ---------------------------------------------------------- FINANCIALS - 13.0% Banks - 4.6% Commonwealth Bank of Australia 5,650 102,911 Hang Seng Bank Ltd. 12,200 134,917 Mitsubishi Tokyo Financial Group, Inc. 8 46,621 United Overseas Bank Ltd. 29,000 210,061 ------------- 494,510 ------------- Diversified Financials - 4.0% Housing Development Finance Corp., Ltd. 23,400 246,220 Nikko Cordial Corp. 11,000 52,886 Swire Pacific Ltd., Series A 22,000 123,550 ------------- 422,656 ------------- Insurance - 0.5% Millea Holdings, Inc. 5 51,849 ------------- Real Estate - 3.9% City Developments Ltd. 39,000 113,443 Mitsubishi Estate Co., Ltd. 10,000 89,643 Sun Hung Kai Properties Ltd. 30,000 217,329 ------------- 420,415 ------------- ---------------------------------------------------------- HEALTH CARE - 9.1% Health Care Equipment & Supplies - 1.7% Cochlear Ltd. 4,528 95,852 Olympus Optical Co., Ltd. 4,000 91,871 ------------- 187,723 ------------- Pharmaceuticals - 7.4% Chugai Pharmaceutical Co., Ltd. 13,600 144,060 CSL Ltd. 9,610 105,460 Dr. Reddy's Laboratories Ltd., ADR 7,700 195,195 Ranbaxy Laboratories Ltd. 3,000 65,495 Rohto Pharmaceutical Co., Ltd. 5,000 36,809 Sawai Pharmaceutical Co., Ltd. 900 22,098
See notes to investment portfolio. 4 Investment Portfolio (continued) August 31, 2003
Common Stocks (continued) Shares Value ------------------------------------------------------------- HEALTH CARE (continued) Pharmaceuticals - continued Takeda Chemical Industries Ltd. 6,000 $ 216,995 ------------- 786,112 ------------- ------------------------------------------------------------- INDUSTRIALS - 8.5% Commercial Services & Supplies - 1.0% Secom Co., Ltd. 3,000 102,841 ------------- Construction & Engineering - 2.6% JGC Corp. 14,000 107,863 Land & House Public Co., Ltd. 563,600 165,966 ------------- 273,829 ------------- Industrial Conglomerates - 4.9% Hutchison Whampoa Ltd. 35,000 258,038 Kasikornbank Public Co., Ltd., NVDR (a) 99,500 100,493 Wesfarmers Ltd. 9,208 168,554 ------------- 527,085 ------------- ------------------------------------------------------------- INFORMATION TECHNOLOGY - 21.9% Computers & Peripherals - 1.9% Ambit Microsystems Corp. (a) 29,700 81,459 Asustek Computer, Inc. (a) 42,750 115,371 ------------- 196,830 ------------- Electronic Equipment & Instruments - 4.7% Fanuc Ltd. 2,200 145,177 Hoya Corp. 1,800 137,756 Keyence Corp. 300 62,656 Murata Manufacturing Co., Ltd. 1,100 61,842 Stanley Electric Co., Ltd. 5,000 88,272 ------------- 495,703 ------------- Information Technology Consulting & Services - 2.1% Infosys Technologies Ltd. 2,636 224,767 ------------- Office Electronics - 4.4% Brother Industries Ltd. 9,000 79,830 Canon, Inc. 5,000 240,391 Ricoh Co., Ltd. 8,300 152,933 ------------- 473,154 ------------- Semiconductor Equipment & Products - 8.4% Realtek Semiconductor, Inc. 36,000 78,146 Rohm Co., Ltd. 1,500 195,912 Samsung Electronics Co., Ltd. 730 270,370 Taiwan Semiconductor Manufacturing Co., Ltd. (a) 178,408 350,641 ------------- 895,069 -------------
Shares Value ---------------------------------------------------------------- Software - 0.4% Sumisho Computer Systems Corp. 1,700 $ 46,039 ------------- ---------------------------------------------------------------- MATERIALS - 5.1% Chemicals - 3.0% Nitto Denko Corp. 4,600 203,025 Shin-Etsu Chemical Co., Ltd. 3,000 117,753 ------------- 320,778 ------------- Metals & Mining - 2.1% BHP Billiton Ltd. 30,862 219,040 ------------- ---------------------------------------------------------------- TELECOMMUNICATION SERVICES - 9.6% Diversified Telecommunication Services - 3.7% Japan Telecom Holdings Co., Ltd. 18 58,774 KT Corp. 2,300 87,829 Philippine Long Distance Telephone Co. (a) 4,700 45,777 PT Telekomunikasi 132,300 71,334 Telecom Corp. of New Zealand Ltd. (a) 43,284 126,418 ------------- 390,132 ------------- Wireless Telecommunication Services - 5.9% China Mobile Ltd. (a) 92,000 236,510 NTT DoCoMo, Inc. 155 398,509 ------------- 635,019 ------------- ---------------------------------------------------------------- TRANSPORTATION - 1.1% Transportation Infrastructure - 1.1% Zhejiang Expressway Co., Ltd., Class H (a) 240,000 116,165 ------------- ---------------------------------------------------------------- UTILITIES - 1.8% Electric Utilities - 1.6% Huaneng Power International, Inc. 128,000 175,607 ------------- Gas Utilities - 0.2% Hong Kong & China Gas Co., Ltd. 12,613 16,981 ------------- Total Common Stocks (cost of $9,038,076) 10,417,767 -------------
See notes to investment portfolio. 5 Investment Portfolio (continued) August 31, 2003
Short-Term Obligation - 2.1% Par Value ------------------------------------------------------------ Repurchase agreement with State Street Bank & Trust Co., dated 08/29/03, due 09/02/03 at 0.940%, collateralized by a U.S. Treasury Bond maturing 08/15/19, market value $231,656 (repurchase proceeds $225,024) (cost of $225,000) $ 225,000 $ 225,000 ------------- Total Investments - 99.9% (cost of $9,263,076) (b) 10,642,767 ------------- Other Assets & Liabilities, Net - 0.1% 14,904 ------------------------------------------------------------ Net Assets - 100.0% $ 10,657,671 -------------
Notes to Investment Portfolio: (a) Non-income producing. (b) Cost for federal income tax purposes is $9,298,564.
Acronym Name ------------------------------------- ADR American Depositary Receipt NVDR Non-Voting Depositary Receipt
Summary of Securities by % of Total Country (Unaudited) Value Investments ------------------------------------------------ Japan $ 5,010,567 47.1% Australia 1,058,476 9.9 Hong Kong 965,681 9.0 India 758,664 7.1 Taiwan 625,617 5.9 China 528,282 5.0 Singapore 413,095 3.9 South Korea 358,199 3.4 Thailand 292,865 2.8 United States 225,000 2.1 New Zealand 126,418 1.2 Indonesia 123,285 1.2 Malaysia 110,842 1.0 Philippines 45,776 0.4 ----------- ----- $10,642,767 100.0% ----------- -----
Certain securities are listed by country of underlying exposure but may trade predominantly on other exchanges. See notes to financial statements. 6 Statement of Assets and Liabilities August 31, 2003 Assets: Investments, cost $ 9,263,076 ----------- Investments, at value $10,642,767 Cash 734 Foreign currency (cost of $56,375) 56,390 Receivable for: Investments sold 16,622 Fund shares sold 138,783 Interest 18 Dividends 19,495 Expense reimbursement due from Advisor/Administrator 24,151 Deferred Trustees' compensation plan 4,871 ----------- Total Assets 10,903,831 ----------- Liabilities: Payable for: Investments purchased 55,936 Fund shares repurchased 81,384 Management fee 8,819 Administration fee 2,288 Transfer agent fee 14,275 Pricing and bookkeeping fees 1,133 Audit fee 30,985 Foreign capital gains tax payable 17,050 Deferred Trustees' fee 4,871 Other liabilities 29,419 ----------- Total Liabilities 246,160 ----------- Net Assets $10,657,671 ----------- Composition of Net Assets: Paid-in capital $17,763,073 Accumulated net investment loss (6,315) Accumulated net realized loss (8,461,496) Net unrealized appreciation (depreciation) on: Investments 1,379,691 Foreign currency translations (232) Foreign capital gains tax (17,050) ----------- Net Assets $10,657,671 -----------
Class A: Net assets $5,342,975 Shares outstanding 369,019 ---------- Net asset value per share $ 14.48 (a) ---------- Maximum offering price per share ($14.48/0.9425) $ 15.36 (b) ---------- Class B: Net assets $3,781,313 Shares outstanding 270,328 ---------- Net asset value and offering price per share $ 13.99 (a) ---------- Class C: Net assets $ 804,078 Shares outstanding 57,531 ---------- Net asset value and offering price per share $ 13.98 (a) ---------- Class Z: Net assets $ 729,305 Shares outstanding 49,968 ---------- Net asset value and offering price per share $ 14.60(c) ----------
(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. (c) Redemption price per share is equal to net asset value less any applicable redemption fee. See notes to financial statements. 7 Statements of Operations
For the For the Period Ended Year Ended August 31, June 30, 2003(a) 2003 -------------------------------------------------------------------------------------------------------------------------- Investment Income: Dividends $ 30,458 $ 197,927 Interest 201 4,937 ---------- ----------- Total Investment Income (net of foreign taxes withheld of $2,054 and $20,104, respectively) 30,659 202,864 ---------- ----------- Expenses: Management fee 17,179 102,939 Administration fee 4,269 25,847 Distribution fee: Class B 4,449 27,682 Class C 1,015 6,258 Service fee: Class A 2,132 13,932 Class B 1,483 9,227 Class C 332 2,086 Pricing and bookkeeping fees 1,508 13,915 Transfer agent fee 12,533 81,076 Trustees' fees 1,128 6,843 Custody fee 4,755 29,152 Audit fee 13,166 14,315 Registration fee 8,252 45,348 Reports to shareholders 6,522 18,356 Other expenses 338 5,734 ---------- ----------- Total Operating Expenses 79,061 402,710 Fees and expenses waived or reimbursed by Advisor/Administrator (37,028) (147,661) Custody earnings credit (48) (32) ---------- ----------- Net Operating Expenses 41,985 255,017 Interest expense -- 393 ---------- ----------- Net Expenses 41,985 255,410 ---------- ----------- Net Investment Loss (11,326) (52,546) ---------- ----------- Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency: Net realized loss on: Investments (187,619) (1,086,952) Foreign currency transactions (3,628) (10,184) ---------- ----------- Net realized loss (191,247) (1,097,136) ---------- ----------- Net change in unrealized appreciation/depreciation on: Investments 1,401,578 (197,586) Foreign currency translations 8 (1,405) Foreign capital gains tax (17,050) -- ---------- ----------- Net change in unrealized appreciation/depreciation 1,384,536 (198,991) ---------- ----------- Net Gain (Loss) 1,193,289 (1,296,127) ---------- ----------- Net Increase (Decrease) in Net Assets From Operations $1,181,963 $(1,348,673) ---------- -----------
(a) The Fund has changed its fiscal year end from June 30 to August 31. See notes to financial statements. 8 Statements of Changes in Net Assets
Period Year Year Ended Ended Ended Increase (Decrease) August 31, June 30, June 30, in Net Assets: 2003 (a) 2003 2002 ------------------------------------------------------------------- Operations: Net investment loss $ (11,326) $ (52,546) $ (121,980) Net realized loss on investments and foreign currency transactions (191,247) (1,097,136) (1,564,247) Net change in unrealized appreciation/depreciation on investments, foreign currency translations and foreign capital gains tax 1,384,536 (198,991) (222,347) ---------- ------------ ------------ Net Increase (Decrease) from Operations 1,181,963 (1,348,673) (1,908,574) ---------- ------------ ------------ Share Transactions: Class A: Subscriptions 310,109 28,630,724 18,708,721 Redemptions (172,220) (30,054,165) (20,214,863) ---------- ------------ ------------ Net Increase (Decrease) 137,889 (1,423,441) (1,506,142) ---------- ------------ ------------ Class B: Subscriptions 377,399 1,206,593 1,611,226 Redemptions (232,132) (2,252,380) (2,794,582) ---------- ------------ ------------ Net Increase (Decrease) 145,267 (1,045,787) (1,183,356) ---------- ------------ ------------ Class C: Subscriptions 784,900 10,662,175 4,392,539 Redemptions (792,425) (10,999,756) (4,346,103) ---------- ------------ ------------ Net Increase (Decrease) (7,525) (337,581) 46,436 ---------- ------------ ------------ Class Z (formerly Class S) (b): Subscriptions 1,950 1,868,968 178,644 Proceeds received in combination with original Class Z -- 13 -- Redemptions (189,566) (1,271,675) (221,759) ---------- ------------ ------------ Net Increase (Decrease) (187,616) 597,306 (43,115) ---------- ------------ ------------ Class Z (through 07/29/02): Subscriptions -- -- 485 Proceeds combined into former Class S -- (13) -- Redemptions -- -- (6,879) ---------- ------------ ------------ Net Decrease -- (13) (6,394) ---------- ------------ ------------ Net Increase (Decrease) from Share Transactions 88,015 (2,209,516) (2,692,571) ---------- ------------ ------------ Total Increase (Decrease) in Net Assets 1,269,978 (3,558,189) (4,601,145)
Period Year Year Ended Ended Ended Increase (Decrease) August 31, June 30, June 30, in Net Assets: 2003 (a) 2003 2002 ------------------------------------------------------------------ Net Assets: Beginning of period $ 9,387,693 $12,945,882 $17,547,027 ----------- ----------- ----------- End of period (including accumulated net investment loss of $(6,315), $(12,839) and $(121,497), respectively) $10,657,671 $ 9,387,693 $12,945,882 ----------- ----------- ----------- Changes in Shares: Class A: Subscriptions 22,631 2,287,361 1,284,099 Redemptions (12,561) (2,398,752) (1,372,817) ----------- ----------- ----------- Net Increase (Decrease) 10,070 (111,391) (88,718) ----------- ----------- ----------- Class B: Subscriptions 28,619 99,602 113,932 Redemptions (17,494) (184,634) (196,072) ----------- ----------- ----------- Net Increase (Decrease) 11,125 (85,032) (82,140) ----------- ----------- ----------- Class C: Subscriptions 59,050 871,959 308,889 Redemptions (58,976) (890,657) (301,261) ----------- ----------- ----------- Net Increase (Decrease) 74 (18,698) 7,628 ----------- ----------- ----------- Class Z (formerly Class S) (b): Subscriptions 141 147,874 11,880 Issued in combination with original Class Z -- 1 -- Redemptions (13,841) (99,198) (15,309) ----------- ----------- ----------- Net Increase (Decrease) (13,700) 48,677 (3,429) ----------- ----------- ----------- Class Z (through 07/29/02): Subscriptions -- -- 34 Shares combined into former Class S -- (1) -- Redemptions -- -- (483) ----------- ----------- ----------- Net Decrease -- (1) (449) ----------- ----------- -----------
(a) The Fund has changed its fiscal year end from June 30 to August 31. (b) On July 29, 2002, the Fund's existing Class Z shares were combined into the Fund's Class S shares, which were subsequently redesignated as Class Z shares. See notes to financial statements. 9 Notes to Financial Statements August 31, 2003 Note 1. Accounting Policies Organization: Columbia Newport Asia Pacific Fund (the "Fund") (formerly Liberty Newport Asia Pacific Fund), a series of Columbia Funds Trust VI (formerly Liberty Funds Trust VI), is a diversified portfolio of a Massachusetts business trust, registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. The Fund's investment goal is to seek long-term growth. The Fund may issue an unlimited number of shares. The Fund offers four classes of shares: Class A, Class B, Class C and Class Z. 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. Class A shares are sold with a front-end sales charge. A 1.00% contingent deferred sales charge ("CDSC") is assessed to Class A shares purchased without an initial sales charge on redemptions made within eighteen months on an original purchase of $1 million to $25 million. Class B shares are subject to a CDSC. Class B shares will convert to Class A shares in three, four or eight years after purchase, depending on the program under which shares were purchased. Class C shares are subject to a CDSC on redemptions made within one year after purchase. Class Z shares are offered continuously at net asset value. There are certain restrictions on the purchase of Class Z shares, as described in the Fund's prospectus. Effective February 11, 2003, the Board of Trustees approved a change in the fiscal year end from June 30 to August 31. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses 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. Certain of the prior period's figures have been reclassified to conform with the current year presentation. Security Valuation and Transactions: Equity securities generally are valued at the last sale price reported at the close of the principal securities exchanges on which the investments are traded or, in the case of unlisted or listed securities for which there were no sales during the day, at the current quoted bid price. In certain countries, the Fund may hold foreign designated shares. If the foreign share prices are not readily available as a result of limited share activity, the securities are valued at the last sale price of the local shares in the principal market in which such securities are normally traded. Korean equity securities that have reached the limit for aggregate foreign ownership and for which premiums to the local exchange prices may be paid by foreign investors are valued by applying a broker quoted premium to the local share price. Forward currency contracts are valued based on the weighted value of exchange-traded contracts with similar durations. Short-term obligations with a maturity of 60 days or less are valued at amortized cost. The values of all assets and liabilities quoted in foreign currencies are translated into U.S. dollars at that day's exchange rates. Generally, trading in foreign securities is substantially completed each day at various times prior to the close of the New York Stock Exchange ("NYSE"). The values of such securities used in computing the net asset value of the Fund's shares are determined as of such times. Foreign currency exchange rates are also generally determined prior to the close of the NYSE. Occasionally, events affecting the values of such securities and such exchange rates may occur between the times at which they are determined and the close of the customary trading session of the NYSE, which would not be reflected in the computation of the Fund's net asset value. If events materially affecting the value of such securities and such exchange rates occur during such period, then these securities will be valued at their fair value as determined in good faith by or under the supervision of the Board of Trustees. Investments for which market quotations are not readily available, or quotations which management believes are not appropriate, are valued at fair value under procedures approved by the Board of Trustees. Security transactions are accounted for on the date the securities are purchased, sold or mature. 10 Notes to Financial Statements (continued) August 31, 2003 Cost is determined and gains (losses) are based upon the specific identification method for both financial statement and federal income tax purposes. Determination of Class Net Asset Values: All income, expenses (other than class specific fees), and realized and unrealized gains (losses) are allocated to each class proportionately on a daily basis, based on net assets, for purposes of determining the net asset value of each class. Foreign Capital Gains Tax: Realized gains in certain countries may be subject to foreign taxes at the Fund level, at rates ranging from approximately 10% to 30%. The Fund accrues for such foreign taxes on net realized and unrealized gains at the rate appropriate for each jurisdiction. Federal Income Taxes: Consistent with the Fund's policy to qualify as a regulated investment company and to distribute all of its taxable income, no federal income tax has been accrued. Distributions to Shareholders: Distributions to shareholders are recorded on the ex-date. Foreign Currency Translations and Transactions: The books and records of the Fund are maintained in U.S. dollars. Foreign currencies, investments and other assets and liabilities of the Fund are translated into U.S. dollars at the daily rates of exchange on the valuation date. Purchases and sales of investment securities, dividend and interest income and certain expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. Net unrealized foreign exchange gains or losses arise from changes in the value of assets and liabilities, other than investments in securities, resulting from changes in the exchange rates. Net realized and unrealized gains (losses) on foreign currency transactions and translations includes gains (losses) arising from the fluctuation in exchange rates between trade and settlement dates on securities transactions, gains (losses) arising from the disposition of foreign currency and currency gains (losses) between the accrual and payment dates on dividends and interest income and foreign withholding taxes. The Fund does not distinguish that portion of gains (losses) on investments which is due to changes in foreign exchange rates from that which is due to changes in market prices of the investments. Such fluctuations are included with the net realized and unrealized gains (losses) on investments. Forward Currency Contracts: The Fund may enter into forward currency contracts to purchase or sell foreign currencies at predetermined exchange rates in connection with the settlement of purchases and sales of securities. The Fund may also enter into forward currency contracts to hedge certain other foreign currency denominated assets. The contracts are used to minimize the exposure to foreign exchange rate fluctuations during the period between trade and settlement date of the contracts. All contracts are marked-to-market daily, resulting in unrealized gains (losses) which become realized at the time the forward currency contracts are closed or mature. Realized and unrealized gains (losses) arising from such transactions are included in net realized and unrealized gains (losses) on foreign currency transactions and translations. Forward currency contracts do not eliminate fluctuations in the prices of the Fund's portfolio securities. While the maximum potential loss from such contracts is the aggregate face value in U.S. dollars at the time the contract was opened, exposure is typically limited to the change in value of the contract (in U.S. dollars) over the period it remains open. Risks may also arise if counterparties fail to perform their obligations under the contracts. Redemption Fees: Effective February 10, 2003, the Fund began imposing a 2% redemption fee to shareholders of Class Z shares who redeem shares held for 60 days or less. For the period February 10, 2003 to August 31, 2003, there were no redemption fees paid to the fund for Class Z shares. Other: Interest income is recorded on the accrual basis. Corporate actions and dividend income are recorded on the ex-date (except for certain foreign securities which are recorded as soon after ex-date as the Fund becomes aware of such), net of non-reclaimable tax withholdings. Where a high level of uncertainty as to collection exists, income on securities is recorded net of all tax withholdings with any rebates recorded when received. The Fund's custodian takes possession through the federal book-entry system of securities collateralizing repurchase agreements. Collateral is marked-to-market daily to ensure that the market value of the underlying assets remains sufficient to protect the Fund. The Fund may experience costs and delays in liquidating the collateral if the issuer defaults or enters bankruptcy. 11 Notes to Financial Statements (continued) August 31, 2003 Note 2. Federal Tax Information Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from accounting principles generally accepted in the United States of America. These differences are primarily due to differing treatments for deferral of losses from wash sales, foreign currency transactions, net operating losses, capital loss carryforwards and non-deductible expenses. Reclassifications are made to the Fund's capital accounts to reflect income and gains available for distribution (or available capital loss carryforwards) under income tax regulations. For the period ended August 31, 2003, permanent items identified and reclassified among the components of net assets are as follows: Accumulated Accumulated Net Investment Net Realized Paid-In Loss Loss Capital -------------- ------------ -------- $17,850 $3,628 $(21,478) Net investment income, net realized gains (losses) and net assets were not affected by this reclassification. As of August 31, 2003, the components of distributable earnings on a tax basis were as follows: Unrealized Appreciation* ------------- $1,327,022 * The difference between book-basis and tax-basis unrealized appreciation is attributable primarily to the tax deferral of losses on wash sales. The following capital loss carryforwards are available to reduce taxable income arising from future net realized gains on investments, if any, to the extent permitted by the Internal Revenue Code: Year of Capital Loss Expiration Carryforward ---------- ------------ 2005 $2,391,127 2009 3,676,821 2010 1,404,163 2011 953,897 ---------- $8,426,008 ---------- Expired capital loss carryforward, if any, are recorded as a reduction of paid-in capital. Note 3. Fees and Compensation Paid to Affiliates On April 1, 2003, Newport Fund Management, Inc. ("Newport"), the investment advisor to the Fund, merged into Columbia Management Advisors, Inc. ("Columbia"), formerly known as Columbia Management Co., an indirect, wholly-owned subsidiary of FleetBoston Financial Corporation. At the time of the merger, Columbia assumed the obligations of Newport with respect to the Fund. The merger did not change the way the Fund is managed, the investment personnel assigned to manage the Fund or the fees paid by the Fund. Management Fee: Columbia is the investment advisor of the Fund and receives a monthly fee equal to 1.00% annually of the Fund's average daily net assets. At a special meeting held on October 8, 2003, the Board of Trustees approved a new management fee structure to go into effect on November 1, 2003. Under the new structure, Columbia will receive a monthly fee based on the Fund's average daily net assets as follows:
Average Daily Net Assets Annual Fee Rate ------------------------ --------------- First $1 billion 0.95% Next $500 million 0.90% Over $1.5 billion 0.85%
Administration Fee: Columbia also provides accounting and other services for a monthly fee equal to 0.25% annually of the Fund's average daily net assets. At a special meeting held on October 8, 2003, the Board of Trustees eliminated the administration fee effective November 1, 2003. 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 Bank and Trust Company ("State Street"). Columbia pays fees to State Street under the Outsourcing Agreement. Under its pricing and bookkeeping agreement with the Fund, Columbia receives from the Fund an annual flat 12 Notes to Financial Statements (continued) August 31, 2003 fee of $10,000, paid monthly, and in any month that the Fund's average daily net assets are more than $50 million, a monthly fee equal to the average daily net assets of the Fund for that month multiplied by a fee rate that is calculated by taking into account the fees payable to State Street under the Outsourcing Agreement. The Fund also pays out-of-pocket costs for pricing services. Transfer Agent Fee: Liberty Funds Services, Inc. (the "Transfer Agent"), an affiliate of Columbia, provides shareholder services for a monthly fee equal to 0.06% annually of the Fund's average daily net assets plus charges based on the number of shareholder accounts and transactions. The Transfer Agent also receives reimbursement for certain out-of-pocket expenses. Effective October 13, 2003, Liberty Funds Services, Inc. changed its name to Columbia Funds Services, Inc. At a special meeting held on October 8, 2003, the Board of Trustees approved the change of transfer agent fees structure of the Fund. Effective November 1, 2003, the Fund will be charged an annual $28.00 charge per open account for the transfer agent fees. Underwriting Discounts, Service and Distribution Fees: Liberty Funds Distributor, Inc. (the "Distributor"), an affiliate of Columbia, is the Fund's principal underwriter. Effective October 13, 2003, Liberty Funds Distributor, Inc. changed its name to Columbia Funds Distributor Inc. For the period ended August 31, 2003, the Fund has been advised that the Distributor retained net underwriting discounts of $719 on sales of the Fund's Class A shares and received CDSC of $738, $842 and $3 on Class A, Class B and Class C share redemptions, respectively. The Fund has adopted a 12b-1 plan (the "Plan"), which requires the payment of a monthly service fee to the Distributor equal to 0.25% annually of the average daily net assets attributable to Class A, Class B and Class C shares. The Plan also requires the payment of a monthly distribution fee to the Distributor equal to 0.75% annually 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. Expense Limits: Columbia has voluntarily agreed, until further notice, to waive fees and bear certain Fund expenses to the extent that total expenses (exclusive of service fees, distribution fees, brokerage commissions, interest, taxes and extraordinary expenses, if any) exceed 1.90% annually of the Fund's average daily net assets. Other: The Fund pays no compensation to its officers, all of whom are employees of Columbia or any of its affiliates. The Fund's Independent Trustees may participate in a deferred compensation plan which may be terminated at any time. Obligations of the plan will be paid solely out of the Fund's assets. The Fund has an agreement with its custodian bank under which $48 and $32 of custody fees were reduced by balance credits for the period ended August 31, 2003 and the year ended June 30, 2003, respectively. 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. Note 4. Portfolio Information Investment Activity: For the period ended August 31, 2003, purchases and sales of investments, other than short-term obligations, were $934,662 and $811,776, respectively. Unrealized appreciation (depreciation) at August 31, 2003, for federal income tax purposes, was: Gross unrealized appreciation $2,037,391 Gross unrealized depreciation (693,188) ---------- Net unrealized appreciation $1,344,203 ----------
Other: There are certain additional risks involved when investing in foreign securities that are not inherent with investments in domestic securities. These risks may involve foreign currency exchange rate fluctuations, adverse political and economic developments and the possible prevention of currency exchange or other foreign governmental laws or restrictions. The Fund may focus its investments in certain industries, subjecting it to greater risk than a fund that is more diversified. 13 Notes to Financial Statements (continued) August 31, 2003 Note 5. Line of Credit The Fund and other affiliated funds participate in a $350,000,000 credit facility, which is used for temporary or emergency purposes to facilitate portfolio liquidity. Interest is charged to the Fund based on its borrowings. In addition, the Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit. The commitment fee is included in "Other expenses" on the Statement of Operations. Prior to April 26, 2003, the Fund participated in a separate credit agreement with similar terms to its existing agreement. For the period ended August 31, 2003, the Fund did not borrow under these agreements. Note 6. Beneficial Interest At August 31, 2003, 28.8% of the outstanding shares of the Fund were held by one shareholder, holding in excess of 5% of the Fund's shares outstanding. Investment activity of this shareholder may have a material effect on the Fund. 14 Financial Highlights Selected data for a share outstanding throughout each period is as follows:
Period Ended Period Ended August 31, Year Ended June 30, June 30, 2003 (a) --------------------------------------------- 1999 (b) Class A Shares ------------ 2003 2002 2001 2000 ------------ ------------------------------------- -------------------------------------------------- Net Asset Value, Beginning of Period $ 12.87 $ 14.47 $ 16.50 $ 24.55 $ 19.01 $ 10.00 -------- --------- --------- --------- -------- -------- Income from Investment Operations: Net investment loss (c) (0.01) (0.03) (0.08) (0.04) (0.16)(d) (0.02)(d) Net realized and unrealized gain (loss) on investments, foreign currency and foreign capital gains tax 1.62 (1.57) (1.95) (7.38) 7.03 9.14 -------- --------- --------- --------- -------- -------- Total from Investment Operations 1.61 (1.60) (2.03) (7.42) 6.87 9.12 -------- --------- --------- --------- -------- -------- Less Distributions Declared to Shareholders: From net investment income -- -- -- -- (0.50) (0.11) From net realized gains -- -- -- (0.18) (0.83) -- In excess of net realized gains -- -- -- (0.45) -- -- -------- --------- --------- --------- -------- -------- Total Distributions Declared to Shareholders -- -- -- (0.63) (1.33) (0.11) -------- --------- --------- --------- -------- -------- Net Asset Value, End of Period $ 14.48 $ 12.87 $ 14.47 $ 16.50 $ 24.55 $ 19.01 -------- --------- --------- --------- -------- -------- Total return (e)(f) 12.51%(g) (11.06)% (12.30)% (30.60)% 36.18% 91.64%(g) -------- --------- --------- --------- -------- -------- Ratios to Average Net Assets/Supplemental Data: Operating expenses (h) 2.15%(i) 2.15% 2.15% 2.15% 2.15% 2.15%(i) Interest expense -- --(j) --(j) -- -- -- Net investment loss (h) (0.36)%(i) (0.24)% (0.55)% (0.22)% (0.65)% (0.15)%(i) Waiver/reimbursement 2.16%(i) 1.40% 1.74% 1.26% 0.96% 3.10%(i) Portfolio turnover rate 8%(g) 42% 24% 43% 31% 26%(g) Net assets, end of period (000's) $ 5,343 $ 4,620 $ 6,804 $ 9,222 $ 10,213 $ 4,606
(a) The Fund has changed its fiscal year end from June 30 to August 31. (b) The Fund commenced investment operations on August 19, 1998. Per share data, total return and portfolio turnover rate reflect activity from that date. (c) Per share data was calculated using average shares outstanding during the period. (d) Net of fees and expenses waived or borne by the Advisor/Administrator which amounted to $0.233 and $0.365 per share for the periods ended June 30, 2000 and 1999, respectively. (e) Total return at net asset value assuming all distributions reinvested and no initial sales charge or contingent deferred sales charge. (f) Had the Advisor/Administrator not waived a portion of expenses, total return would have been reduced. (g) Not annualized. (h) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (i) Annualized. (j) Rounds to less than 0.01%. 15 Financial Highlights (continued) Selected data for a share outstanding throughout each period is as follows:
Period Ended Period Ended August 31, Year Ended June 30, June 30, 2003 (a) --------------------------------------------- 1999 (b) Class B Shares ------------ 2003 2002 2001 2000 ------------ ---------------------------------------- -------------------------------------------------- Net Asset Value, Beginning of Period $ 12.45 $ 14.09 $ 16.19 $ 24.31 $ 18.90 $ 10.00 -------- --------- --------- --------- -------- -------- Income from Investment Operations: Net investment loss (c) (0.02) (0.11) (0.19) (0.15) (0.34)(d) (0.11)(d) Net realized and unrealized gain (loss) on investments, foreign currency and foreign capital gains tax 1.56 (1.53) (1.91) (7.34) 7.03 9.10 -------- --------- --------- --------- -------- -------- Total from Investment Operations 1.54 (1.64) (2.10) (7.49) 6.69 8.99 -------- --------- --------- --------- -------- -------- Less Distributions Declared to Shareholders: From net investment income -- -- -- -- (0.45) (0.09) From net realized gains -- -- -- (0.18) (0.83) -- In excess of net realized gains -- -- -- (0.45) -- -- -------- --------- --------- --------- -------- -------- Total Distributions Declared to Shareholders -- -- -- (0.63) (1.28) (0.09) -------- --------- --------- --------- -------- -------- Net Asset Value, End of Period $ 13.99 $ 12.45 $ 14.09 $ 16.19 $ 24.31 $ 18.90 -------- --------- --------- --------- -------- -------- Total return (e)(f) 12.37%(g) (11.64)% (12.97)% (31.20)% 35.43% 90.36%(g) -------- --------- --------- --------- -------- -------- Ratios to Average Net Assets/Supplemental Data: Operating expenses (h) 2.90%(i) 2.90% 2.90% 2.90% 2.90% 2.90%(i) Interest expense -- --(j) --(j) -- -- -- Net investment loss (h) (1.10)%(i) (0.87)% (1.30)% (0.80)% (1.40)% (0.90)%(i) Waiver/reimbursement 2.16%(i) 1.45% 1.74% 1.38% 0.96% 3.10%(i) Portfolio turnover rate 8%(g) 42% 24% 43% 31% 26%(g) Net assets, end of period (000's) $ 3,781 $ 3,227 $ 4,851 $ 6,903 $ 5,836 $ 515
(a) The Fund has changed its fiscal year end from June 30 to August 31. (b) The Fund commenced investment operations on August 19, 1998. Per share data, total return and portfolio turnover rate reflect activity from that date. (c) Per share data was calculated using average shares outstanding during the period. (d) Net of fees and expenses waived or borne by the Advisor/Administrator which amounted to $0.233 and $0.365 per share for the periods ended June 30, 2000 and 1999, respectively. (e) Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge. (f) Had the Advisor/Administrator not waived a portion of expenses, total return would have been reduced. (g) Not annualized. (h) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (i) Annualized. (j) Rounds to less than 0.01%. 16 Financial Highlights (continued) Selected data for a share outstanding throughout each period is as follows:
Period Ended Period Ended August 31, Year Ended June 30, June 30, 2003 (a) --------------------------------------------- 1999 (b) Class C Shares ------------ 2003 2002 2001 2000 ------------ ------------------------------------- -------------------------------------------------- Net Asset Value, Beginning of Period $ 12.44 $ 14.09 $ 16.18 $ 24.28 $ 18.90 $ 10.00 -------- --------- --------- --------- -------- -------- Income from Investment Operations: Net investment loss (c) (0.03) (0.11) (0.19) (0.18) (0.34)(d) (0.11)(d) Net realized and unrealized gain (loss) on investments, foreign currency and foreign capital gains tax 1.57 (1.54) (1.90) (7.29) 7.00 9.10 -------- --------- --------- --------- -------- -------- Total from Investment Operations 1.54 (1.65) (2.09) (7.47) 6.66 8.99 -------- --------- --------- --------- -------- -------- Less Distributions Declared to Shareholders: From net investment income -- -- -- -- (0.45) (0.09) From net realized gains -- -- -- (0.18) (0.83) -- In excess of net realized gains -- -- -- (0.45) -- -- -------- --------- --------- --------- -------- -------- Total Distributions Declared to Shareholders -- -- -- (0.63) (1.28) (0.09) -------- --------- --------- --------- -------- -------- Net Asset Value, End of Period $ 13.98 $ 12.44 $ 14.09 $ 16.18 $ 24.28 $ 18.90 -------- --------- --------- --------- -------- -------- Total return (e)(f) 12.38%(g) (11.71)% (12.92)% (31.15)% 35.27% 90.36%(g) -------- --------- --------- --------- -------- -------- Ratios to Average Net Assets/Supplemental Data: Operating expenses (h) 2.90%(i) 2.90% 2.90% 2.90% 2.90% 2.90%(i) Interest expense -- --(j) --(j) -- -- -- Net investment loss (h) (1.14)%(i) (0.87)% (1.30)% (0.92)% (1.40)% (0.90)%(i) Waiver/reimbursement 2.16%(i) 1.46% 1.74% 1.29% 0.96% 3.10%(i) Portfolio turnover rate 8%(g) 42% 24% 43% 31% 26%(g) Net assets, end of period (000's) $ 804 $ 715 $ 1,073 $ 1,109 $ 1,383 $ 202
(a) The Fund has changed its fiscal year end from June 30 to August 31. (b) The Fund commenced investment operations on August 19, 1998. Per share data, total return and portfolio turnover rate reflect activity from that date. (c) Per share data was calculated using average shares outstanding during the period. (d) Net of fees and expenses waived or borne by the Advisor/Administrator which amounted to $0.233 and $0.365 per share for the periods ended June 30, 2000 and 1999, respectively. (e) Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge. (f) Had the Advisor/Administrator not waived a portion of expenses, total return would have been reduced. (g) Not annualized. (h) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (i) Annualized. (j) Rounds to less than 0.01%. 17 Financial Highlights (continued) Selected data for a share outstanding throughout each period is as follows:
Period Ended Period Ended August 31, Year Ended June 30, June 30, 2003(a) ---------------------- 2001(c) Class Z Shares ------------ 2003(b) 2002 ------------ ----------------------------------------------------- -------------------------- Net Asset Value, Beginning of Period $ 12.97 $ 14.55 $ 16.54 $ 19.06 -------- --------- --------- --------- Income from Investment Operations: Net investment income (loss) (d) --(e) (0.01) (0.04) 0.08 Net realized and unrealized gain (loss) on investments, foreign currency and foreign capital gains tax 1.63 (1.57) (1.95) (2.60) -------- --------- --------- --------- Total from Investment Operations 1.63 (1.58) (1.99) (2.52) -------- --------- --------- --------- Net Asset Value, End of Period $ 14.60 $ 12.97 $ 14.55 $ 16.54 -------- --------- --------- --------- Total return (f) 12.57%(g) (10.86)% (12.03)% (13.22)%(g) -------- --------- --------- --------- Ratios to Average Net Assets/ Supplemental Data: Operating expenses (h) 1.90%(i) 1.90%(j) 1.90% 1.90%(i) Interest expense -- --(k) --(k) -- Net investment income (loss) (h) (0.13)%(i) (0.06)% (0.30)% 1.08%(i) Waiver/reimbursement 2.16%(i) 1.95% 1.74% 1.99%(i) Portfolio turnover rate 8%(g) 42% 24% 43% Net assets, end of period (000's) $ 729 $ 826 $ 218 $ 305
(a) The Fund has changed its fiscal year end from June 30 to August 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 S shares were initially offered on February 1, 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) Rounds to less than $0.01 per share. (f) Had the Advisor/Administrator not waived or reimbursed a portion of expenses, total return would have been reduced. (g) Not annualized. (h) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (i) Annualized. (j) This expense ratio has been restated as a result of a typographical error made to the shareholder report dated June 30, 2003. The shareholder report at June 30, 2003, indicated an incorrect expense ratio of 2.07%, which did not appropriately reflect the net expenses accrued for the year. (k) Rounds to less than 0.01%. 18 Report of Independent Auditors To the Trustees of Columbia Funds Trust VI and the Shareholders of Columbia Newport Asia Pacific 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 Newport Asia Pacific Fund (the "Fund") (formerly Liberty Newport Asia Pacific Fund) (a series of Columbia Funds Trust VI) (formerly Liberty Funds Trust VI), at August 31, 2003, 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 auditing standards generally accepted in the United States of America, 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 August 31, 2003, by correspondence with the custodian and brokers, provide a reasonable basis for our opinion. PricewaterhouseCoopers LLP Boston, Massachusetts October 21, 2003 19 Trustees Effective October 8, 2003, Patrick J. Simpson and Richard L. Woolworth were appointed to the Board of Trustees of the Fund. Messrs. Simpson and Woolworth had been directors of 15 Columbia Funds and 12 funds in the CMG Fund Trust. Also effective October 8, 2003, the incumbent trustees of the Fund were elected as directors of the 15 Columbia Funds and as trustees of the 12 funds in the CMG Fund Trust. The new combined Board of Trustees of the Fund now oversees 124 funds in the Columbia Funds Complex (including the former Liberty Funds, former Stein Roe Funds, Columbia Funds and CMG Funds). Several of those trustees also serve on the Boards of other funds in the Columbia Funds Complex. The Trustees serve terms of indefinite duration. The names, addresses and ages of the Trustees 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 and other directorships they hold are shown below. Each officer listed below serves as an officer of each Fund in the Columbia Funds Complex. The Statement of Additional Information (SAI) contains additional information about the Trustees and is available without charge upon request by calling the fund's distributor at 800-345-6611.
Number of Year First Portfolios in Position Elected or Columbia Funds with Appointed Principal Occupation(s) Complex Overseen Name, Address and Age Funds to Office/1/ During Past Five Years by Trustee -------------------------------------------------------------------------------------------------------------- Disinterested Trustees Douglas A. Hacker (Age 48) Trustee 1996 Executive Vice President - Strategy of 124 P.O. Box 66100 United Airlines (airline) since Chicago, IL 60666 December, 2002 (formerly President of UAL Loyalty Services (airline) from September, 2001 to December, 2002; Executive Vice President and Chief Financial Officer of United Airlines from March, 1993 to September, 2001; Senior Vice President and Chief Financial Officer of UAL, Inc. prior thereto). Janet Langford Kelly (Age 45) Trustee 1996 Chief Administrative Officer and Senior 124 3100 West Beaver Road Vice President, Kmart Holding Troy, MI 48084-3163 Corporation since September, 2003 (formerly 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). Richard W. Lowry (Age 67) Trustee 1995 Private Investor since August, 1987 126/3/ 10701 Charleston Drive (formerly Chairman and Chief Executive Vero Beach, FL 32963 Officer, U.S. Plywood Corporation (building products manufacturer)). Charles R. Nelson (Age 61) Trustee 1981 Professor of Economics, University of 124 Department of Economics Washington, since January, 1976; Ford University of Washington and Louisa Van Voorhis Professor of Seattle, WA 98195 Political Economy, University of Washington, since September, 1993; Director, Institute for Economic Research, University of Washington, since September, 2001; Adjunct Professor of Statistics, University of Washington, since September, 1980; Associate Editor, Journal of Money Credit and Banking, since September, 1993; consultant on econometric and statistical matters. John J. Neuhauser (Age 60) Trustee 1985 Academic Vice President and Dean of 127/3,4/ 84 College Road Faculties since August, 1999, Boston Chestnut Hill, MA 02467-3838 College (formerly Dean, Boston College School of Management from September, 1977 to September, 1999. Patrick J. Simpson (Age 58) Trustee 2000 Partner, Perkins Coie L.L.P. (formerly 124 1211 S.W. 5th Avenue Partner, Stoel Rives Boley Jones & Suite 1500 Grey). Portland, OR 97204 Thomas E. Stitzel (Age 67) Trustee 1998 Business Consultant since 1999 124 2208 Tawny Woods Place (formerly Professor of Finance from Boise, ID 83706 1975 to 1999 and Dean from 1977 to 1991, College of Business, Boise State University); Chartered Financial Analyst.
Other Principal Occupation(s) Directorships During Past Five Years Held --------------------------------------------------------------------------- Executive Vice President - Strategy of None United Airlines (airline) since December, 2002 (formerly President of UAL Loyalty Services (airline) from September, 2001 to December, 2002; Executive Vice President and Chief Financial Officer of United Airlines from March, 1993 to September, 2001; Senior Vice President and Chief Financial Officer of UAL, Inc. prior thereto). Chief Administrative Officer and Senior None Vice President, Kmart Holding Corporation since September, 2003 (formerly 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). Private Investor since August, 1987 None (formerly Chairman and Chief Executive Officer, U.S. Plywood Corporation (building products manufacturer)). Professor of Economics, University of None Washington, since January, 1976; Ford and Louisa Van Voorhis Professor of Political Economy, University of Washington, since September, 1993; Director, Institute for Economic Research, University of Washington, since September, 2001; Adjunct Professor of Statistics, University of Washington, since September, 1980; Associate Editor, Journal of Money Credit and Banking, since September, 1993; consultant on econometric and statistical matters. Academic Vice President and Dean of Saucony, Inc. (athletic footwear); Faculties since August, 1999, Boston SkillSoft Corp. College (formerly Dean, Boston College (E-Learning) School of Management from September, 1977 to September, 1999. Partner, Perkins Coie L.L.P. (formerly None Partner, Stoel Rives Boley Jones & Grey). Business Consultant since 1999 None (formerly Professor of Finance from 1975 to 1999 and Dean from 1977 to 1991, College of Business, Boise State University); Chartered Financial Analyst.
20 Trustees (continued)
Number of Year First Portfolios in Position Elected or Columbia Funds with Appointed Principal Occupation(s) Complex Overseen Name, Address and Age Funds to Office/1/ During Past Five Years by Trustee --------------------------------------------------------------------------------------------------------------- Disinterested Trustees Thomas C. Theobald (Age 66) Trustee 1996 Managing Director, William Blair 124 27 West Monroe Street, Capital Partners (private equity Suite 3500 investing) since September, 1994 Chicago, IL 60606 (formerly Chief Executive Officer and Chairman of the Board of Directors, Continental Bank Corporation prior thereto). Anne-Lee Verville (Age 58) Trustee 1998 Author and speaker on educational 125/4/ 359 Stickney Hill Road systems needs (formerly General Hopkinton, NH 03229 Manager, Global Education Industry from 1994 to 1997, and President, Applications Solutions Division from 1991 to 1994, IBM Corporation (global education and global applications)). Richard L. Woolworth (Age 62) Trustee 1991 Chairman and Chief Executive Officer, 124 100 S.W. Market Street The Regence Group (healthcare #1500 maintenance organization) (formerly Portland, OR 97207 Chairman and Chief Executive Officer, BlueCross BlueShield of Oregon; Certified Public Accountant, Arthur Young & Company). Interested Trustees William E. Mayer/2/ (Age 63) Trustee 1994 Managing Partner, Park Avenue Equity 126/3/ 399 Park Avenue Partners (private equity) since Suite 3204 February, 1999 (formerly Founding New York, NY 10022 Partner, Development Capital LLC from November 1996 to February, 1999; Dean and Professor, College of Business and Management, University of Maryland from October, 1992 to November, 1996). Joseph R. Palombo/2/ (Age 50) Trustee, 2000 Executive Vice President and Chief 125/5/ One Financial Center Chairman Operating Officer of Columbia Boston, MA 02111 of the Management Group, Inc. (Columbia Board Management) since December, 2001 and and Director, Executive Vice President and President Chief Operating Officer of the Advisor since April, 2003 (formerly Chief Operations Officer of Mutual Funds, Liberty Financial Companies, Inc. from August, 2000 to November, 2001; Executive Vice President of Stein Roe & Farnham Incorporated (Stein Roe) from April, 1999 to April, 2003; Director of Colonial Management Associates, Inc. (Colonial) from April, 1999 to April, 2003; Director of Stein Roe from September, 2000 to April, 2003) President of Columbia Funds and Galaxy Funds since February, 2003 (formerly Vice President from September 2002 to February 2003); Manager of Stein Roe Floating Rate Limited Liability Company since October, 2000; (formerly Vice President of the Columbia Funds from April, 1999 to August, 2000; Chief Operating Officer and Chief Compliance Officer, Putnam Mutual Funds from December, 1993 to March, 1999).
Other Principal Occupation(s) Directorships During Past Five Years Held ------------------------------------------------------------------------ Managing Director, William Blair Anixter International (network Capital Partners (private equity support equipment distributor), investing) since September, 1994 Jones Lang LaSalle (real estate (formerly Chief Executive Officer and management services) and Chairman of the Board of Directors, MONY Group (life insurance). Continental Bank Corporation prior thereto). Author and speaker on educational Chairman of the Board of systems needs (formerly General Directors, Enesco Group, Inc. Manager, Global Education Industry from (designer, importer and 1994 to 1997, and President, distributor of giftware and Applications Solutions Division from collectibles). 1991 to 1994, IBM Corporation (global education and global applications)). Chairman and Chief Executive Officer, NW Natural, a natural gas The Regence Group (healthcare service provider maintenance organization) (formerly Chairman and Chief Executive Officer, BlueCross BlueShield of Oregon; Certified Public Accountant, Arthur Young & Company). Managing Partner, Park Avenue Equity Lee Enterprises (print media), Partners (private equity) since WR Hambrecht + Co. (financial February, 1999 (formerly Founding service provider) and First Partner, Development Capital LLC from Health (healthcare). November 1996 to February, 1999; Dean and Professor, College of Business and Management, University of Maryland from October, 1992 to November, 1996). Executive Vice President and Chief None Operating Officer of Columbia Management Group, Inc. (Columbia Management) since December, 2001 and Director, Executive Vice President and Chief Operating Officer of the Advisor since April, 2003 (formerly Chief Operations Officer of Mutual Funds, Liberty Financial Companies, Inc. from August, 2000 to November, 2001; Executive Vice President of Stein Roe & Farnham Incorporated (Stein Roe) from April, 1999 to April, 2003; Director of Colonial Management Associates, Inc. (Colonial) from April, 1999 to April, 2003; Director of Stein Roe from September, 2000 to April, 2003) President of Columbia Funds and Galaxy Funds since February, 2003 (formerly Vice President from September 2002 to February 2003); Manager of Stein Roe Floating Rate Limited Liability Company since October, 2000; (formerly Vice President of the Columbia Funds from April, 1999 to August, 2000; Chief Operating Officer and Chief Compliance Officer, Putnam Mutual Funds from December, 1993 to March, 1999).
/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 Funds (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. Mr. Palombo is an interested person as an employee of the Advisor. /3/ Messrs. Lowry, Neuhauser and Mayer each also serve as a director/trustee of the All-Star Funds, currently consisting of 2 funds, which are advised by an affiliate of the Advisor. /4/ Mr. Neuhauser and Ms. Verville also serve as disinterested directors of Columbia Management Multi-Strategy Hedge Fund, LLC, which is advised by the Advisor. /5/ Mr. Palombo also serves as an interested director of Columbia Management Multi-Strategy Hedge Fund, LLC, which is advised by the Advisor. 21 Officers and Transfer Agent
Year first elected or Position with appointed Principal occupation(s) Name, address and age Columbia Funds to office during past five years ---------------------------------------------------------------------------------------------------------- Officers Vicki L. Benjamin (Age 42) Chief 2001 Controller of the Columbia Funds and of the One Financial Center Accounting Liberty All-Star Funds since May, 2002; Chief Boston, MA 02111 Officer and Accounting Officer of the Columbia Funds and Controller Liberty All-Star Funds since June, 2001; Controller and Chief Accounting Officer of the Galaxy Funds since September, 2002 (formerly Vice President, Corporate Audit, State Street Bank and Trust Company from May, 1998 to April, 2001; Audit Manager from July, 1994 to June, 1997; Senior Audit Manager from July, 1997 to May, 1998, Coopers & Lybrand, LLP). J. Kevin Connaughton (Age 39) Treasurer 2000 Treasurer of the Columbia Funds and of the One Financial Center Liberty All-Star Funds since December, 2000; Vice Boston, MA 02111 President of the Advisor since April, 2003 (formerly Controller of the Liberty Funds and of the Liberty All-Star Funds from February, 1998 to October, 2000); Treasurer of the Galaxy Funds since September, 2002; Treasurer, Columbia Management Multi-Strategy Hedge Fund, LLC since December, 2002 (formerly Vice President of Colonial from February, 1998 to October, 2000 and Senior Tax Manager, Coopers & Lybrand, LLP from April, 1996 to January, 1998).
Important Information About This Report The Transfer Agent for Columbia Newport Asia Pacific Fund is: Columbia Funds Services, Inc. P.O. Box 8081 Boston, MA 02266-8081 Please note our new name as of October 13, 2003 The fund mails one shareholder report to each shareholder address. If you would like more than one report, please call shareholder services at 800-345-6611 and additional reports will be sent to you. This report has been prepared for shareholders of Columbia Newport Asia Pacific Fund. This report may also be used as sales literature when preceded or accompanied by the current prospectus which provides details of sales charges, investment objectives and operating policies of the fund and with the most recent copy of the Columbia Funds Performance Update. Annual Report: Columbia Newport Asia Pacific Fund Columbia Newport Asia Pacific Fund Annual Report, August 31, 2003 [LOGO](R) ColumbiaFunds A Member of Columbia Management Group (c)2003 Columbia Funds Distributor, Inc. One Financial Center, Boston, MA 02111-2621 800.426.3750 WWW.columbiafunds.com 737-02/208P-0803 (10/03) 03/2892 PRSRT STD U.S. Postage PAID Holliston, MA Permit NO. 20 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 and Anne-Lee Verville, 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 and Ms. Verville are each independent trustees, as defined in paragraph (a)(2) of this item's instructions. Item 4. Principal Accountant Fees and Services. Not applicable at this time. Item 5. Audit Committee of Listed Registrants. Not applicable at this time. Item 6. Reserved. Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. Not applicable. Item 8. Reserved. Item 9. Controls and Procedures. (a) The registrant's principal executive officer and principal financial officer, based on their evaluation of the registrant's disclosure controls and procedures as of a date within 90 days of the filing of this report, have concluded that such controls and procedures are adequately designed to ensure that information required to be disclosed by the registrant in Form N-CSR is accumulated and communicated to the registrant's management, including the principal executive officer and principal financial officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. (b) There were no changes in the registrant's internal control over financial reporting that occurred during the registrant's last fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. Item 10. 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. (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/ Joseph R. Palombo ------------------------- Joseph R. Palombo, President Date November 7, 2003 ---------------------------------------------- Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By (Signature and Title) /s/ Joseph R. Palombo -------------------------- Joseph R. Palombo, President Date November 7, 2003 ---------------------------------------------- By (Signature and Title) /s/ J. Kevin Connaughton -------------------------- J. Kevin Connaughton, Treasurer Date November 7, 2003 ----------------------------------------------