Stein Roe Advisor Funds
Semiannual Report
March 31, 1998
Photo of: hands holding small tree
Stein Roe Advisor Funds
Growth Funds
Stein Roe Advisor Special Fund
Stein Roe Advisor Special Venture Fund
Stein Roe Mutual Funds
Sensible Risks. Intelligent Investments.(sm)
<PAGE>
Contents
- ----------------------------------------------------------------------------
Fund Performance......................................................... 1
How the Stein Roe Advisor growth
funds have done over time
Q&A
Interviews with the portfolio managers and
summaries of investment activity
Stein Roe Advisor Special Fund........................................... 3
Stein Roe Advisor Special Venture Fund................................... 5
Portfolios of Investments................................................ 7
Complete lists of investments with market values
Financial Statements..................................................... 13
Statements of assets and liabilities, operations
and changes in net assets
Notes to Financial Statements............................................ 19
Financial Highlights..................................................... 21
Selected per-share data
Must be preceded or accompanied by a prospectus.
<PAGE>
Fund Performance
- --------------------------------------------------------------------------------
There are several ways to evaluate a fund's historical performance. You can look
at the total percentage change in value, the average annual percentage change or
the growth of a hypothetical $10,000 investment. Each performance figure
includes changes in a fund's share price, plus reinvestment of any dividends
(net investment income) and capital gains (the profits the fund earns when it
sells stocks that have grown in value).
<TABLE>
<CAPTION>
Average Annual Total Returns
Periods ended March 31, 1998
- --------------------------------------------------------------------------------------------------------
Past 1 Past 3 Past 5 Past 10
Year Years Years Years
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Stein Roe Advisor Special Fund 42.28% 22.34% 15.84% 16.86%
S&P 500 47.96 32.79 22.38 18.92
S&P MidCap 400 49.04 28.47 19.51 19.25
NASDAQ Industrials 33.77 19.32 13.80 13.50
<CAPTION>
Past 1 Life
Year of Fund(1)
- --------------------------------------------------------------------------------------------------------
Stein Roe Advisor Special Venture Fund 27.19% 21.85%
Russell 2000 42.02 22.24
</TABLE>
Past performance is no guarantee of future results. Share price and investment
returns will vary, so you may have a gain or loss when you sell shares. The
Adviser currently limits expenses to 1.45% and 1.50% of average annual net
assets, respectively, of the Stein Roe Advisor Special Fund and the Stein Roe
Advisor Special Venture Fund; absent these limits, total returns would be less.
Historical performance for Class K shares for the period prior to Feb. 14, 1997,
is based on the performance of SR&F Special and Special Venture Portfolios
restated to reflect the 12b-1 fees and any other expenses applicable to that
class, without giving effect to any fee waivers and assuming reinvestment of
dividends and capital gains. Total return performance includes changes in share
price and reinvestment of income and capital gains distributions. The S&P 500,
the S&P MidCap, the NASDAQ Industrials and the Russell 2000 are unmanaged groups
of stocks that differ from the composition of any Stein Roe fund; they are not
available for direct investment.
1Inception Date: Special Venture Fund -- Oct. 17, 1994. Because index returns
are calculated on a monthly basis, the index returns marked "Life of Fund" are
calculated from the month-end results that fell closest to the Fund's
inception date.
A fund's performance, especially for short time periods, should not be the sole
factor in making your investment decision.
<PAGE>
Investment Comparison
- -------------------------------------------------------------------------------
Comparison of change in value of a $10,000 investment.
- -------------------------------------------------------------------------------
Stein Roe Advisor Special Fund
LINE CHART:
Advisor Special S&P 500
9/30/87 10000 10000
9/30/88 9086 8761
9/30/89 12690 11648
9/30/90 11547 10571
9/30/91 15224 13858
9/30/92 16546 15389
9/30/93 21019 17384
9/30/94 21391 18024
9/30/95 24453 23378
9/30/96 28755 28129
9/30/97 38331 39500
3/31/98 40269 46298
- -------------------------------------------------------------------------------
Stein Roe Advisor Special Venture Fund
LINE CHART:
Advisor Special Venture Russell 2000
10/31/94 10000 10000
9/30/95 12370 12389
9/30/96 16264 14016
9/30/97 19755 18668
3/31/98 19525 19858
- -------------------------------------------------------------------------------
Past performance is no guarantee of future results. Share price and
investment returns will vary, so you may have a gain or loss when you sell
shares. These graphs compare the performance of the Stein Roe Advisor funds to
the S&P 500 or the Russell 2000, each an unmanaged group of stocks that differs
from the composition of any Stein Roe Advisor fund; they are not available for
direct investment. The Adviser currently limits expenses to 1.45% and 1.50% of
average annual net assets, respectively, of the Stein Roe Advisor Special Fund
and the Stein Roe Advisor Special Venture Fund; absent these limits, total
returns would be less. Historical performance for Class K shares for the period
prior to Feb. 14, 1997, is based on the performance of SR&F Special and Special
Venture Portfolios restated to reflect 12b-1 fees and any other expenses
applicable to that class, without giving effect to fee waivers and assuming
reinvestment of dividends and capital gains. Total return performance includes
changes in share price and reinvestment of income and capital gains
distributions.
<PAGE>
Q&A
An Interview with Gerry Sandel,
Portfolio Manager of Stein Roe Advisor Special Fund
Fund Data
- --------------------------------------------------------------------------------
Investment Objective:
Seeks to achieve capital appreciation by investing primarily in a diversified
portfolio of equity securities that are considered to have limited downside
risk relative to their potential for above-average growth, including
securities of undervalued, underfollowed or out-of-favor companies.
Q: How did the Fund perform for the six-month period ending March 31, 1998?
A: The Fund's total return was 5.06 percent for the period, underperforming the
8.87 percent return of the Lipper peer group median and the 17.21 percent return
of the S&P 500. Although the S&P 500 is the Fund's published index, it is an
index comprised mainly of large-cap industrial issues. Stein Roe Advisor Special
Fund tends to invest more heavily in mid-cap companies (43 percent of holdings),
although it does own stocks of small and large companies as well (26 percent and
31 percent of holdings, respectively). For this reason, we feel it is more
useful to compare the Fund to the S&P 400 Mid-Cap Index, which returned 11.94
percent for the six months ending March 31, 1998.
Q: What caused the Fund to underperform?
A: Our investment style does not always coincide with the markets. We invest in
strong companies that have large or dominant positions in their industries, yet,
for one reason or another, have lost favor with investors. We hold these
investments until they experience the turnaround we believe is imminent. Once
the turnaround has occurred and the price reaches a lofty valuation level, we
scale back or sell the holding. Traditionally, these companies have been the
hottest performing stocks in the market. While these stocks may continue to grow
after we sell, we believe we reduce our risk level by selling stocks that we
think are overvalued.
Q: What's an example of a stock that worked well with your strategy during the
period?
A: We bought Danka Business Systems (1.1 percent of total net assets) after many
investors sold the stock last year. Since the company's earnings remained
strong, we anticipated that its stock price would rebound, and it did -- 22
percent during the first quarter of 1998. Likewise, Boston Scientific (1.2
percent of total net assets) rebounded 55 percent during the first quarter as
the company's fundamentals improved.
Q: What other holdings performed well in recent months?
A: We overweighted the portfolio in consumer cyclical companies several quarters
back when they were out of favor with investors, believing that their
performance would improve. It did, and we benefited from this improvement, as
companies such as the bookstore chain Borders Group and Carnival, the cruise
line operator (1.2 percent and 1.8 percent of total net assets, respectively),
gained significant investor favor. Now that the market has pushed these stocks
to valuation levels that exceed our price targets, we'll consider selling the
positions. The Fund also benefited from the performance of Scandinavian
Broadcasting* (0.7 percent of total net assets). This company is developing the
television market in several of the emerging Eastern European countries that are
just opening up to consumerism. The stock's price grew 38 percent during the
past six months. This is an example of how the portfolio tries to take advantage
of unique global opportunities.
Q: What are some out-of-favor names that you added to the portfolio during the
period?
A: One new position is Barrick Gold (2.1 percent of total net assets). The
stock's price went down as gold prices sank to their lowest levels this decade.
Barrick Gold viewed this as an opportunity to streamline production and
therefore improve its profitability. The company is phasing out high-cost
production mines and focusing on lower-cost production. We think it should
benefit from this strategy when gold prices rebound. Other new positions include
Columbia/HCA Healthcare; Stewart & Stevenson Services, a distributor of engines;
and Silicon Graphics, a computer graphics company (2.4 percent, 2.1 percent and
1.7 percent of total net assets, respectively).
<PAGE>
Q: Since you buy what others sell, are you finding opportunities in beaten-down
Asian companies?
A: We're investing in U.S. companies that may benefit from buying foreign
competitors or certain of their plants or facilities. With the strength in the
U.S. dollar and the economic weakness in some foreign countries, U.S. companies
can often buy these facilities at extremely low prices and subsequently lower
their operating costs.
Q: How about in the technology sector?
A: Two stocks we purchased were Silicon Graphics, as mentioned previously, and
Seagate Technologies, a disk drive manufacturer (1.7 percent and 1.0 percent of
total net assets, respectively). These companies have disappointed investors and
have seen their stock prices deflate. However, we believe their long-term
fundamentals remain intact, and that they continue to offer good earnings
turnaround potential.
Q: How do you expect the market to perform in coming months?
A: We expect the global economy to be slower, which may impact the earnings
potential of some U.S. companies. This type of market environment may provide us
opportunities to invest in companies that disappoint near term, but still have
good long-term growth potential.
Past performance is no guarantee of future results. Share price and investment
returns will vary, so you may have a gain or loss when you sell shares. Holdings
are disclosed as a percentage of the SR&F Special Portfolio's total net assets.
Portfolio holdings are as of March 31, 1998, and are subject to change. The
Adviser currently limits expenses to 1.45% of average annual net assets; absent
this limit, total returns would be less. Historical performance for Class K
shares for the period prior to Feb. 14, 1997, is based on the performance of
SR&F Special Portfolio restated to reflect 12b-1 fees and any other expenses
applicable to that class, without giving effect to fee waivers and assuming
reinvestment of dividends and capital gains. Total return performance includes
changes in share price and reinvestment of income and capital gains
distributions. Absent this limit, total return would have been less. The S&P 500
and the S&P 400 are unmanaged groups of stocks that differ from the composition
of each Stein Roe Fund; they are not available for direct investment. According
to Lipper Analytical Services, Inc., an independent monitor of mutual fund
performance, the median returns for the Fund's growth fund peer group for the
one-, five- and 10-year periods ended March 31, 1998, were 44.07 percent, 19.11
percent and 16.74 percent, respectively.
* Foreign investments involve market, political and currency risks not
generally associated with other investments.
<PAGE>
Q&A
An Interview with Dick Peterson and John McLandsborough,
Portfolio Managers for Stein Roe Advisor Special Venture Fund
Fund Data
- --------------------------------------------------------------------------------
Investment Objective:
Seeks to achieve long-term capital appreciation by investing primarily in a
diversified portfolio of entrepreneurially managed companies. The portfolio
emphasizes investments in financially strong, small- and medium-sized
companies based principally on its management appraisal and the stock
valuation of the companies. Funds that emphasize investments in smaller
companies may experience short-term volatility.
John McLandsborough joined Dick Peterson as co-portfolio manager of Stein Roe
Advisor Special Venture Fund on June 30, 1997.
Q: How did the Fund perform?
A: The Fund's total return was -1.17 percent for the six months ended March 31,
1998 versus a return of 5.82 percent for the Lipper peer group median and 6.37
percent for the benchmark Russell 2000 Index. The Fund was weak in the first
half of the period, returning -7.69 percent for the three months ended Dec. 31,
1997, before rebounding 7.07 percent for the three months ended March 31, 1998.
While the short-term performance of the Fund lagged our benchmark, we continue
to believe that our strategy of investing in small companies* that are well
positioned, entrepreneurially managed and have reasonable valuations will
continue to be successful over a long-term time horizon. We are encouraged by
the Fund's 22.22 percent average annual total return since its inception on Oct.
17, 1994, which is about equal to the 22.24 percent return for the Russell 2000
Index over the same time period.
Q: What affected small-cap stocks' performance during the past six months?
A: Small-cap stocks outperformed large-cap stocks from April 1997 through
October 1997 until the Asian currency crisis led to a flight to large-cap
stocks. As a result, small-cap stocks lagged their large-cap counterparts over
the past six months. The Russell 2000, the proxy for the small-cap market,
trailed the large-cap S&P 500 benchmark by 10.84 percent during the period.
Q: What affected the Fund's performance?
A: During the past six months, the Fund's performance was driven by a
combination of factors. Several of our larger holdings returned strong
performance, but were offset by several additional holdings that significantly
underperformed. Top performing stocks for the quarter included Metamor Worldwide
(3.1 percent of total net assets), a company benefiting from the trend toward
outsourcing information-technology staff and consulting services, and CB
Commercial Real Estate Services (5.3 percent of total net assets), a company
benefiting from its growing real estate brokerage and related services. Other
issues that performed well were Metro Networks (5.0 percent of total net
assets), a dominant and growing player in the niche business of providing radio
and television traffic and news reports, and FiServ (1.9 percent of total net
assets), a data processing company providing services for the financial services
industry.
Q: What holdings dragged down performance?
A: Two sectors that underperformed for the Fund were energy and technology. Our
oil and gas exploration and production holdings, including Barrett Resources and
Meridian Resources (1.1 percent and 1.4 percent of total net assets,
respectively), suffered given the weakened outlook for oil and gas prices. We
reduced our exposure to the energy sector by selling three of our energy
holdings: Renaissance Energy, Devon Energy and Cross Timbers Oil. AVX (2.5
percent of total net assets), Kent Electronics (1.4 percent of total net assets)
and Danka Business Systems (1.1 percent of total net assets) all historically
successful technology holdings for the Fund, underperformed during this period.
We remain optimistic about the longer-term outlook for these three companies.
<PAGE>
Q: When some of your holdings drag down short-term performance, how do you
determine whether to continue to hold or to sell these particular issues?
A: A beaten-down stock price is not enough to prompt us to sell a holding. Some
of our best long-term holdings have been purchased following periods of
underperformance. There are four circumstances under which we are likely to sell
a holding: an unexpected change in top management; a sudden change in business
strategy; deteriorating company or industry fundamentals; or shares that we
believe are overvalued.
Q: What is your outlook for the small-cap market in the coming months? Based on
that, what is your outlook for the Fund?
A: We are optimistic regarding the outlook for the small-cap market as well as
for Stein Roe Advisor Special Venture Fund. The small-cap sector, in our
opinion, appears relatively cheap. The earnings growth outlook for small-cap
stocks continues to be strong, and yet, the valuations seem attractive. Since
1979, the Russell 2000 has, on average, traded at a higher price-to-earnings
ratio than the S&P 500. Currently, the Russell 2000 trades at a substantial
discount to the S&P 500 for only the fourth time in the last 20 years. We
believe continued strong growth in the earnings of small-cap companies, relative
to their large-cap counterparts, should eventually lead to the outperformance of
small-cap stocks. Based on this data, we feel positive about the outlook for the
portfolio in the year ahead. When we compare Stein Roe Advisor Special Venture
Fund to its benchmark, the Russell 2000, the Fund has a higher forecasted
long-term earnings per share (EPS) growth rate, but trades at a discount in
terms of valuation. Even more compelling is the comparison of the portfolio to
the large-cap stock sector, as measured by the S&P 500 Index. The portfolio has
almost three times the estimated long-term EPS growth, yet currently trades at
comparable valuation levels.
Past performance is no guarantee of future results. Share price and investment
returns will vary, so you may have a gain or loss when you sell shares. Holdings
are disclosed as a percentage of the SR&F Special Venture Portfolio's total net
assets. Portfolio holdings are as of March 31, 1998, and are subject to change.
The Adviser currently limits expenses to 1.50% of average net assets; absent
this limit, total returns would be less. Historical performance for Class K
shares for the period prior to Feb. 14, 1997, is based on the performance of
SR&F Special Venture Portfolio restated to reflect 12b-1 fees and any other
expenses applicable to that class, without giving effect to fee waivers and
assuming reinvestment of dividends and capital gains. Total return performance
includes changes in share price and reinvestment of income and capital gains
distributions. The S&P 500 and the Russell 2000 are unmanaged groups of stocks
that differ from the composition of each Stein Roe fund; they are not available
for direct investment. According to Lipper Analytical Services, Inc., an
independent monitor of mutual fund performance, the median returns for the
Fund's small-cap fund peer group for the one-, three-year and since inception
periods ended March 31, 1998, were 43.67 percent, 24.94 percent and 22.86
percent, respectively.
* Funds that emphasize investments in smaller companies may experience
short-term volatility.
<PAGE>
<TABLE>
SR&F Special Portfolio
Portfolio Investments at March 31, 1998
(Dollar amounts in thousands)
(Unaudited)
<CAPTION>
Number Market
Common Stocks (87.8%) of Shares Value
<S> <C> <C>
Advertising (2.3%)
Interpublic Group of Companies................................................................... 490,000 $30,441
Banks (2.5%)
Golden West Financial............................................................................ 200,000 19,162
Washington Mutual................................................................................ 200,000 14,343
----------
33,505
Broadcasting (1.2%)
Grupo Radio Centro ADRs.......................................................................... 429,800 6,098
Scandinavian Broadcasting System (a)............................................................. 285,600 9,425
----------
15,523
Business Services (4.3%)
Danka Business Systems ADRs...................................................................... 822,000 15,104
Interim Services (a)............................................................................. 950,000 32,062
Unitog........................................................................................... 506,550 11,714
----------
58,880
Computer Services (1.7%)
Silicon Graphics (a)............................................................................. 1,695,000 23,624
Consumer-Related (1.3%)
Newell........................................................................................... 355,000 17,195
Drugs (2.7%)
Novartis......................................................................................... 13,000 23,008
Perrigo (a)...................................................................................... 1,121,500 13,738
----------
36,746
Electrical Equipment (2.1%)
Littelfuse (a)................................................................................... 690,000 17,940
Littelfuse warrants (a).......................................................................... 547,200 10,944
----------
28,884
Electronics and Instrumentation (5.6%)
AVX.............................................................................................. 1,106,700 22,272
Kent Electronics (a)............................................................................. 1,236,000 26,033
Molex, class A................................................................................... 1,029,416 27,601
----------
75,906
Energy and Related Services (6.0%)
Cross Timbers Oil................................................................................ 2,016,225 40,577
Renaissance Energy Limited (a)................................................................... 935,000 19,034
Petroleum Geo-Services ADRs (a).................................................................. 370,900 22,022
----------
81,633
Financial Services (2.5%)
American Express................................................................................. 235,000 21,576
Household International.......................................................................... 90,000 12,398
----------
33,974
Health Services and Equipment (13.9%)
Acuson (a)....................................................................................... 810,300 14,687
Boston Scientific (a)............................................................................ 244,600 16,511
Cardinal Health.................................................................................. 100,000 8,819
Columbia/HCA Healthcare.......................................................................... 1,000,000 32,250
First Health Group (a)........................................................................... 390,500 21,185
Invacare......................................................................................... 1,173,550 30,512
MedPartners (a).................................................................................. 1,100,000 11,275
<PAGE>
<CAPTION>
<S> <C> <C>
Health Services and Equipment (continued)
Steris (a)....................................................................................... 200,000 $ 10,800
Stryker.......................................................................................... 464,600 21,778
Sybron International (a)......................................................................... 800,000 20,900
----------
188,717
Industrial Products (2.2%)
Carlisle......................................................................................... 595,200 29,239
Insurance Companies (6.1%)
National Mutual Asia Limited..................................................................... 18,450,000 15,240
Progressive...................................................................................... 298,200 40,164
20th Century Industries.......................................................................... 992,700 26,679
----------
82,083
Leisure and Entertainment (2.6%)
Carnival, class A................................................................................ 350,000 24,413
CBS.............................................................................................. 300,000 10,181
----------
34,594
Machinery - General Industry (3.2%)
Robbins & Myers.................................................................................. 135,100 5,151
Stewart & Stevenson Services..................................................................... 1,206,400 29,029
Singer........................................................................................... 812,000 8,577
----------
42,757
Metals (2.0%)
Barrick Gold..................................................................................... 1,284,000 27,767
Mining and Agriculture (1.4%)
Cyprus Amax Minerals............................................................................. 678,000 11,272
Placer Dome...................................................................................... 626,600 8,263
----------
19,535
Motor Vehicles (3.8%)
Harley-Davidson.................................................................................. 864,000 28,512
Superior Industries International................................................................ 701,000 23,264
----------
51,776
Office Products (1.5%)
Ikon Office Solutions............................................................................ 589,000 20,357
Security (1.3%)
Pittston Brink's Group........................................................................... 437,600 18,056
Retail (4.8%)
Borders Group (a)................................................................................ 460,000 15,669
Consolidated Stores (a).......................................................................... 519,250 22,295
Proffitt's (a)................................................................................... 433,200 15,704
Zale (a)......................................................................................... 404,600 11,683
----------
65,351
Specialty Chemicals (5.9%)
Imperial Chemical Industries ADRs................................................................ 325,000 23,359
Lydall (a)....................................................................................... 929,000 16,780
Minerals Technologies............................................................................ 274,200 13,813
OM Group......................................................................................... 624,000 26,286
----------
80,238
Technology Services (1.0%)
Seagate Technology (a)........................................................................... 522,000 13,181
<PAGE>
<CAPTION>
<S> <C> <C>
Telecommunications (4.1%)
AirTouch Communications (a)...................................................................... 349,500 $ 17,104
PriCellular (a).................................................................................. 1,081,000 13,783
Telephone & Data Systems......................................................................... 509,000 24,178
--------------
55,065
Textiles and Apparel (1.8%)
Unifi............................................................................................ 648,475 24,156
--------------
Total Common Stocks
(Cost $703,921).................................................................................. 1,189,182
- --------------------------------------------------------------------------------------------------------------------------------
Principal
Short-Term Obligations (12.1%) Amount
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Commercial Paper (12.1%)
Associates Corp. of North America 6.050% 4/01/98................................................. $13,150 13,150
Circus Circus 6.050% 04/01/98.................................................................... 50,000 50,000
Merrill Lynch 6.050% 04/01/98.................................................................... 50,000 50,000
Texas Utilities 5.950% 04/02/98.................................................................. 50,000 49,992
--------------
Total Short-Term Obligations
(Cost $163,142).................................................................................. 163,142
- --------------------------------------------------------------------------------------------------------------------------------
Total Investments (99.9%)
(Cost $867,063) (b).............................................................................. 1,352,324
Other Assets, Less Liabilities (0.1%)............................................................ 1,794
--------------
Total Net Assets (100.0%)........................................................................ $1,354,118
==============
Notes to Portfolio of Investments
(a) Non-income producing security.
(b) At March 31, 1998, the cost of investments for federal income tax purposes
was $868,617. Net unrealized appreciation was $483,707, consisting of gross
unrealized appreciation of $493,669 and gross unrealized depreciation of $9,962.
See accompanying Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
SR&F Special Venture Portfolio
<CAPTION>
Portfolio Investments at March 31, 1998
(Dollar amounts in thousands)
(Unaudited)
Number Market
Common Stocks (95.2%) of Shares Value
<S> <C> <C>
Automotive Accessories (2.5%)
Superior Industries International................................................................ 172,600 $ 5,728
Broadcast and Media (8.6%)
Central European Media Enterprises Limited (a)................................................... 285,200 8,306
Metro Networks (a)............................................................................... 273,000 11,739
----------
20,045
Business Services (10.8%)
Alternative Resources (a)........................................................................ 418,700 8,819
Danka Business Systems ADRs...................................................................... 143,500 2,637
Interim Services (a)............................................................................. 189,900 6,409
Metamor Worldwide (a)............................................................................ 192,900 7,246
----------
25,111
Commercial Banks (1.2%)
National Bancorp of Alaska....................................................................... 18,700 2,842
Computer Services (5.2%)
BARRA (a)........................................................................................ 161,200 4,594
Fiserv (a)....................................................................................... 71,400 4,525
SPSS (a)......................................................................................... 133,800 3,144
----------
12,263
Cosmetics (2.5%)
Nu Skin Asia (a)................................................................................. 226,200 5,825
Dental Products (1.1%)
National Dentex (a).............................................................................. 101,700 2,568
Diversified Operations (3.6%)
Fisher Companies................................................................................. 39,500 2,528
Triarc Companies (a)............................................................................. 227,300 5,967
----------
8,495
Drugs (3.4%)
Ligand Pharmaceuticals (a)....................................................................... 124,800 1,989
Shire Pharmaceuticals Group (a).................................................................. 85,200 1,826
Teva Pharmaceutical Industries Limited ADRs...................................................... 95,000 4,061
----------
7,876
Electrical Equipment (9.0%)
AVX.............................................................................................. 289,800 5,832
Ballantyne of Omaha (a).......................................................................... 313,700 4,941
Black Box (a).................................................................................... 50,000 1,844
Computer Products (a)............................................................................ 221,000 5,152
Kent Electronics (a)............................................................................. 153,200 3,227
----------
20,996
Health Services & Equipment (7.4%)
Biosource International (a)...................................................................... 312,000 2,009
Complete Management (a).......................................................................... 222,500 1,891
Urologix (a)..................................................................................... 175,800 1,632
Uroquest Medical (a)............................................................................. 301,700 1,207
Xomed Surgical Products (a)...................................................................... 285,900 7,862
Young Innovations (a)............................................................................ 165,900 2,571
----------
17,172
<PAGE>
<CAPTION>
<S> <C> <C>
Insurance (7.3%)
Meadowbrook Insurance Group...................................................................... 310,900 $ 9,521
PAULA Financial.................................................................................. 230,500 5,474
20th Century Industries.......................................................................... 77,800 2,091
-----------
17,086
Oil and Gas (2.5%)
Barrett Resources (a)............................................................................ 72,500 2,533
Meridian Resource (a)............................................................................ 411,500 3,292
-----------
5,825
Optical Supplies (3.7%)
Sola International (a)........................................................................... 210,800 8,735
Packaging (1.5%)
Siligan Holdings (a)............................................................................. 96,600 3,393
Publishing (2.9%)
CMP Media (a).................................................................................... 268,100 6,736
Real Estate Development and Management (13.3%)
CB Commercial Real Estate Services Group (a)..................................................... 308,900 12,356
LaSalle Partners (a)............................................................................. 138,800 4,511
Reckson Associates............................................................................... 286,300 7,551
Spieker Properties............................................................................... 162,000 6,682
------------
31,100
Retail (1.3%)
Video Update (a)................................................................................. 878,000 3,018
Specialty Chemicals (2.8%)
ChemFirst........................................................................................ 247,000 6,546
Telecommunications (2.1%)
Andrew........................................................................................... 107,000 2,120
Western Wireless (a)............................................................................. 123,800 2,847
------------
4,967
Textile and Apparel (0.6%)
Columbia Sportswear (a).......................................................................... 61,900 1,308
Wholesale Distribution (1.9%)
Henry Schein (a)................................................................................. 105,000 4,359
------------
Total Common Stocks
(Cost $187,849).................................................................................. 221,994
- --------------------------------------------------------------------------------------------------------------------------------
Principal
Short-Term Obligations (6.0%) Amount
- --------------------------------------------------------------------------------------------------------------------------------
Commerical Paper (6.0%)
Associates Corp. of North America 6.050% 4/01/98................................................. $9,845 9,845
Conagra 6.100% 4/01/98........................................................................... 4,000 4,000
------------
Total Short-Term Obligations
(Cost $13,845)................................................................................... 13,845
- --------------------------------------------------------------------------------------------------------------------------------
<PAGE>
<CAPTION>
Market
Value
<S> <C>
Total Investments (101.2%)
(Cost $204,694) (b).............................................................................. $235,839
Other Assets, Less Liabilities (-1.2%)........................................................... (2,721)
------------
Total Net Assets (100.0%)........................................................................ $233,118
============
Notes to Portfolio of Investments
(a) Non-income producing security.
(b) At March 31, 1998, the cost of investments for federal income tax purposes
was $205,786. Net unrealized appreciation was $30,053, consisting of gross
unrealized appreciation of $38,393 and gross unrealized depreciation of $8,340.
See accompanying Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
Statements of Assets and Liabilities
March 31, 1998
(All amounts in thousands, except per-share amounts)
(Unaudited)
<CAPTION>
Advisor
Advisor Special
Special Venture
Fund Fund
<S> <C> <C>
Assets
Investment in Portfolio, at value............................................... $ 548 $ 463
Cash............................................................................ 33 34
Receivable for fund shares sold................................................. 2 --
Other assets.................................................................... 11 11
-------- --------
Total assets................................................................. 594 508
-------- --------
Liabilities
Payable to investment adviser................................................... 32 32
Other liabilities............................................................... 13 13
-------- --------
Total liabilities............................................................ 45 45
-------- --------
Net assets................................................................... $ 549 $ 463
======== ========
Liabilities
Paid-in capital................................................................. $ 499 $ 436
Net unrealized appreciation on investments...................................... 44 29
Accumulated net realized gains (losses) on investments.......................... 6 (2)
-------- --------
Net assets................................................................... $ 549 $ 463
======== ========
Shares outstanding (unlimited number authorized)................................ 42 40
======== ========
Net asset value per share....................................................... $13.09 $11.66
======== ========
See accompanying Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
Statements of Operations
For the six months ended March 31, 1998
(All amounts in thousands, except per-share amounts)
(Unaudited)
<CAPTION>
Advisor
Advisor Special
Special Venture
Fund Fund
-------- --------
<S> <C> <C>
Investment Income
Dividends and interest allocated from Portfolio.................................................. $ 1 $ 1
-------- --------
Expenses
Amortization of organization costs............................................................... 15 15
Accounting fees.................................................................................. 12 12
SEC and state registration fees.................................................................. 10 10
Printing and postage............................................................................. 3 3
Audit and legal fees............................................................................. 3 3
Trustees' fees................................................................................... 3 3
Expenses allocated from Portfolio................................................................ 1 1
Other............................................................................................ 1 1
-------- --------
Total expenses................................................................................ 48 48
Reimbursement of expenses by investment adviser.................................................. (47) (47)
-------- --------
Net expenses.................................................................................. 1 1
-------- --------
Net investment loss........................................................................... -- --
-------- --------
Realized and Unrealized Gains on Investments
Net realized gains on investments and foreign currency
transactions allocated from Portfolio......................................................... 10 2
Net change in unrealized appreciation or depreciation on
investments and foreign currency translations................................................. 13 7
-------- --------
Net gains on investments...................................................................... 23 9
-------- --------
Net Increase in Net Assets Resulting from Operations............................................. $ 23 $ 9
======== ========
See accompanying Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
Statements of Changes in Net Assets
For the six months ended March 31, 1998 and the period ended September 30, 1997
(All amounts in thousands)
(Unaudited)
<CAPTION>
Advisor Special
Advisor Special Fund Venture Fund
1998 1997 (a) 1998 1997 (a)
<S> <C> <C> <C> <C>
Operations
Net investment loss..................................................... $ -- $ -- $ -- $ --
Net realized gain (loss) on investments................................. 10 (6) 2 (4)
Net change in unrealized appreciation or depreciation on investments.... 13 31 7 22
-------- -------- -------- --------
Net increase in net assets resulting from operations................. 23 25 9 18
-------- -------- -------- --------
Share Transactions
Subscriptions to fund shares............................................ 422 100 336 100
Redemptions of fund shares.............................................. (21) -- -- --
-------- -------- -------- --------
Net increase from share transactions................................. 401 100 336 100
-------- -------- -------- --------
Net increase in net assets........................................... 424 125 345 118
Total Net Assets
Beginning of period..................................................... 125 -- 118 --
-------- -------- -------- --------
End of period........................................................... $ 549 $ 125 $ 463 $ 118
======== ======== ======== ========
Accumulated Undistributed Net Investment Income......................... $ -- $ -- $ -- $ --
======== ======== ======== ========
Analysis of Changes in Shares of Beneficial Interest
Subscriptions to fund shares............................................ 34 10 30 10
Redemptions of fund shares.............................................. (2) -- -- --
-------- -------- -------- --------
Net increase in fund shares.......................................... 32 10 30 10
Shares outstanding at beginning of period............................... 10 -- 10 --
-------- -------- -------- --------
Shares outstanding at end of period..................................... 42 10 40 10
======== ======== ======== ========
(a) From commencement of operations on February 14, 1997.
See accompanying Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
Statements of Assets and Liabilities
March 31, 1998
(All amounts in thousands)
(Unaudited)
<CAPTION>
SR&F
SR&F Special
Special Venture
Portfolio Portfolio
<S> <C> <C>
Assets
Investments, at market value (cost of $867,063,
and $204,694, respectively)................................................................... $1,352,324 $235,839
Cash............................................................................................. 4 --
Receivable for investments sold.................................................................. 5,108 2,244
Dividends receivable............................................................................. 634 99
------------- -----------
Total assets.................................................................................. 1,358,070 238,182
------------- -----------
Liabilities
Payable for investments purchased................................................................ 3,000 4,864
Payable to investment adviser.................................................................... 834 154
Other liabilities................................................................................ 118 46
------------- -----------
Total liabilities............................................................................. 3,952 5,064
------------- -----------
Net assets applicable to investors' beneficial interest ...................................... $1,354,118 $233,118
============= ===========
See accompanying Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
Statements of Operations
For the six months ended March 31, 1998
(All amounts in thousands)
(Unaudited)
<CAPTION>
SR&F
SR&F Special
Special Venture
Portfolio Portfolio
<S> <C> <C>
Investment Income
Dividends....................................................................... $ 3,803 $ 526
Interest........................................................................ 4,367 509
----------- ----------
Total investment income...................................................... 8,170 1,035
----------- ----------
Expenses
Management fees................................................................. 4,553 848
Accounting fees................................................................. 28 15
Trustees' fees.................................................................. 21 7
Audit and legal fees............................................................ 9 10
Other........................................................................... 134 47
----------- ----------
Total expenses............................................................... 4,745 927
----------- ----------
Net investment income........................................................ 3,425 108
----------- ----------
Realized and Unrealized Gains (Losses) on Investments
Net realized gains on investments............................................... 186,319 8,719
Net realized losses on foreign currency transactions............................ (1,338) --
Net change in unrealized appreciation or depreciation on
investments and foreign currency translations ............................... (116,156) (11,183)
----------- ----------
Net gains (losses) on investments............................................ 68,825 (2,464)
----------- ----------
Net Increase (Decrease) in Net Assets Resulting from Operations................. $ 72,250 $ (2,356)
=========== ==========
See accompanying Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Statements of Changes in Net Assets
For the six months ended March 31, 1998
and the period ended September 30, 1997
(All amounts in thousands)
(Unaudited)
SR&F Special
SR&F Special Portfolio Venture Fund
1998 1997 (a) 1998 1997 (a)
<S> <C> <C> <C> <C>
Operations
Net investment income .................................................. $ 3,425 $ 2,236 $ 108 $ 387
Net realized gains on investments ...................................... 184,981 92,652 8,719 7,866
Net change in unrealized appreciation or depreciation
on investments ...................................................... (116,156) 190,726 (11,183) 27,038
----------- ----------- ----------- -----------
Net increase (decrease) in net assets resulting from operations ..... 72,250 285,614 (2,356) 35,291
----------- ----------- ----------- -----------
Transactions in Investors' Beneficial Interest
Contributions .......................................................... 28,205 1,189,884 20,859 218,483
Withdrawals ............................................................ (74,975) (146,860) (21,426) (17,733)
----------- ----------- ----------- -----------
Net increase (decrease) from transactions in investors'
beneficial interest ............................................. (46,770) 1,043,024 (567) 200,750
----------- ----------- ----------- -----------
Net increase (decrease) in net assets ............................... 25,480 1,328,638 (2,923) 236,041
Total Net Assets
Beginning of period .................................................... 1,328,638 -- 236,041 --
----------- ----------- ----------- -----------
End of period .......................................................... $ 1,354,118 $ 1,328,638 $ 233,118 $ 236,041
=========== =========== =========== ===========
(a) From commencement of operations on February 3, 1997.
See accompanying Notes to Financial Statements.
</TABLE>
<PAGE>
Notes to Financial Statements
(All amounts, except per-share amounts, in thousands)
Note 1. Organization
The Stein Roe Advisor Special Fund and Stein Roe Advisor Special Venture Fund
(the "Funds") are series of the Stein Roe Advisor Trust (the "Trust"), an
open-end management investment company organized as a Massachusetts business
trust. Advisor Special Fund and Advisor Special Venture Fund invest
substantially all of their assets in SR&F Special Portfolio and SR&F Special
Venture Portfolio (the "Portfolios"), respectively. SR&F Special Portfolio seeks
capital appreciation by investing primarily in equity securities that are
considered to have limited downside risk relative to their potential for
above-average growth. SR&F Special Venture Portfolio seeks to achieve long-term
capital appreciation by investing primarily in entrepreneurially managed
companies.
The Portfolios are series of SR&F Base Trust, a Massachusetts common law
trust organized under an Agreement and Declaration of Trust dated August 23,
1993. The Portfolios commenced operations on February 3, 1997. At commencement,
Stein Roe Special Fund and Stein Roe Special Venture Fund contributed $1,096,779
and $160,940 in securities and other assets to SR&F Special Portfolio and SR&F
Special Venture Portfolio, respectively, in exchange for beneficial ownership of
those Portfolios. At February 14, 1997, Advisor Special Fund and Advisor Special
Venture Fund each contributed cash of $100 to their respective Portfolios. The
Portfolios allocate net asset value, income and expenses to each investor on a
daily basis, based on their respective percentage of ownership. At March 31,
1998, Special Fund and Advisor Special Fund owned 99.96 percent and .04 percent,
respectively, of SR&F Special Portfolio; and Special Venture Fund and Advisor
Special Venture Fund owned 99.80 percent and .20 percent, respectively, of SR&F
Special Venture Portfolio.
Note 2. Significant Accounting Policies
The following summarizes the significant accounting policies of the Funds and
Portfolios. These policies are in conformity with generally accepted accounting
principles, which require management to make estimates and assumptions that
affect the amounts reported in the financial statements and accompanying notes.
Actual results could differ from those estimates.
Investment Transactions and Investment Income
Investment transactions are accounted for on trade date. Dividend income is
recorded on the ex-dividend date, and interest income is recorded on the
accrual basis. Interest income includes discount accretion on fixed income
securities. Realized gains and losses from investment transactions are reported
on an identified cost basis.
Security Valuations
All securities are valued as of March 31, 1998. Securities are valued at,
depending on the security involved, the last reported sales price, last bid or
asked price, or the mean between last bid and asked prices as of the close of
the appropriate exchange or other designated time. A security that is listed or
traded on more than one exchange is valued at the quotation on the exchange
determined to be the primary exchange for such security. Securities and other
assets for which market quotations are not readily available are valued at fair
value as determined in good faith by or under the direction of the Board of
Trustees.
Currency Translations
For purposes of valuation, assets and liabilities are translated into U.S.
dollars using currency exchange rates that represent the midpoint between the
bid and asked rates as of 4 p.m., London time. Purchases and sales of securities
are translated into U.S. dollars using the prevailing exchange rate on the dates
of such transactions. The effect of changes in foreign exchange rates on
realized and unrealized security gains and losses is reflected as a component of
such gains and losses.
Forward Currency Exchange
Contracts During the period ended March 31, 1998, SR&F Special Portfolio
entered into forward currency exchange contracts under which it was obligated to
exchange currencies at specified future dates. Risks arise from the possible
inability of counterparties to meet the terms of their contracts and from
movements in currency values. There were no outstanding contracts at March 31,
1998.
Federal Income Taxes
No provision is made for federal income taxes since (a) the Funds elect to be
taxed as "regulated investment companies" and make distributions to their
shareholders to be relieved of all federal income taxes under provisions of
current federal tax law; and (b) the Portfolios are treated as partnerships
for federal income tax purposes and all of their income is allocated to their
owners based on respective percentages of ownership.
<PAGE>
Distributions to Shareholders
Each Fund annually declares and pays dividends of any net investment income and
net realized capital gains. Shareholder distributions are recorded on the
ex-dividend date. Dividends are determined in accordance with income tax
principles, which may treat certain transactions differently from generally
accepted accounting principles. Distributions in excess of tax basis earnings
are reported in the financial statements as a return of capital. Permanent
differences in the recognition or classification of income between the financial
statements and tax earnings are reclassified to paid-in capital.
Note 3. Trustees' Fees and Transactions with Affiliates
The Funds and Portfolios pay monthly management and administrative fees to Stein
Roe & Farnham Incorporated (the "Adviser"), an indirect, majority-owned
subsidiary of Liberty Mutual Insurance Company, for its services as investment
adviser and manager. The management fee for SR&F Special Portfolio is computed
at an annual rate of .75 of 1 percent of average daily net assets up to $500
million, .70 of 1 percent of the next $500 million, .65 of 1 percent of the next
$500 million and .60 of 1 percent thereafter. The management fee for SR&F
Special Venture Portfolio is computed at an annual rate of .75 of 1 percent of
average daily net assets. The administrative fee for Advisor Special Fund is
computed at an annual rate of .15 of 1 percent of average daily net assets up to
$500 million, .125 of 1 percent of the next $500 million, .10 of 1 percent of
the next $500 million and .075 of 1 percent thereafter. The administrative fee
for Advisor Special Venture Fund is computed at an annual rate of .15 of 1
percent of average daily net assets.
The Adviser also provides certain fund accounting services. For the period
ended March 31, 1998, Advisor Special Fund, Advisor Special Venture Fund, SR&F
Special Portfolio and SR&F Special Venture Portfolio incurred charges of $12,
$12, $28 and $15, respectively.
The administrative agreement provides that the Adviser will reimburse each
Fund to the extent that annual expenses, excluding certain expenses, exceed the
applicable limits prescribed by any state in which the Fund's shares are offered
for sale. In addition, the Adviser has agreed to reimburse Advisor Special Fund
and Advisor Special Venture Fund to the extent that expenses exceed 1.45 percent
and 1.50 percent of average annual net assets, respectively. These expense
limitations expire on January 31, 1999, subject to earlier termination by the
Adviser on 30 days notice.
Shares of the Funds are distributed by Liberty Financial Investments, Inc.
(the "Distributor"), an indirect, majority-owned subsidiary of Liberty Mutual
Insurance Company. The trustees of the Trust have adopted a plan of distribution
and service pursuant to Rule 12b-1 under the Investment Company Act of 1940 (the
"Plan"). The Plan provides that, as compensation for services and/or
distribution, the Distributor receives from each Fund a fee at an annual rate
not to exceed 0.25 percent of average daily net assets.
Transfer agent fees are paid to Colonial Investors Service Center, Inc.
("CISC"), an indirect, majority-owned subsidiary of Liberty Mutual Insurance
Company. Prior to October 15, 1997, transfer agent fees were paid to SteinRoe
Services Inc., also an indirect, majority-owned subsidiary of Liberty Mutual
Insurance Company.
Certain officers and trustees of the Trust are also officers of the Adviser.
The compensation of trustees not affiliated with the Adviser for Advisor Special
Fund, Advisor Special Venture Fund, SR&F Special Portfolio and SR&F Special
Venture Portfolio for the period ended March 31, 1998, was $3, $3, $21 and $7,
respectively. No remuneration was paid to any other trustee or officer of the
Trust.
Note 4. Short-Term Debt
To facilitate portfolio liquidity, the Funds and Portfolios maintain borrowing
arrangements under which they can borrow against portfolio securities. Neither
the Funds nor the Portfolios had borrowings during the period ended March 31,
1998.
Note 5. Investment Transactions
The aggregate cost of purchases and proceeds from sales other than short-term
obligations for the period ended March 31, 1998, were:
Purchases Sales
SR&F Special Portfolio $255,300 $328,594
SR&F Special Venture Portfolio 110,425 100,915
<PAGE>
<TABLE>
Financial Highlights
<CAPTION>
Advisor Special Fund
Selected per-share data (for a share outstanding throughout each period), ratios
and supplemental data.
Six Months
Ended Period
March 31, Ended
1998 September 30,
(Unaudited) 1997 (d)
<S> <C> <C>
Net Asset Value, Beginning of Period............................................ $ 12.46 $ 10.00
--------- ---------
Income From Investment Operations
Net investment loss.......................................................... -- (0.03)
Net realized and unrealized gains on investments............................. 0.63 2.49
--------- ---------
Net Asset Value, End of Period.................................................. $ 13.09 $ 12.46
========= =========
Ratio of net expenses to average net assets (b)................................. 1.45% (a) 1.44% (a)
Ratio of net investment loss to average net assets (c).......................... (0.11%)(a) (0.46%)(a)
Total return (c)................................................................ 5.06% 24.60%
Net assets, end of period (000's)............................................... $ 549 $ 125
(a)Annualized
(b)If the Fund had paid all of its expenses and there had been no reimbursement
of expenses by the investment adviser, this ratio would have been 44.57
percent for the six months ended March 31, 1998, and 86.39 percent for the
period ended September 30, 1997. (c) Computed giving effect to the
investment adviser's expense limitation undertaking.
(d)From commencement of operations on February 14, 1997.
</TABLE>
<PAGE>
<TABLE>
Financial Highlights CONTINUED
<CAPTION>
Advisor Special Venture Fund
Selected per-share data (for a share outstanding throughout each period), ratios
and supplemental data.
Six Months
Ended Period
March 31, Ended
1998 September 30,
(Unaudited) 1997 (d)
<S> <C> <C>
Net Asset Value, Beginning of Period.............................................. $ 11.84 $ 10.00
--------- ---------
Income From Investment Operations
Net investment loss............................................................ (0.03) (0.03)
Net realized and unrealized gains (losses) on investments...................... (0.11) 1.87
--------- ---------
(0.14) 1.84
--------- ---------
Distributions
Net investment income.......................................................... (0.01) --
Net realized capital gains..................................................... (0.03) --
--------- ---------
(0.04) --
--------- ---------
Net Asset Value, End of Period.................................................... $ 11.66 $ 11.84
========== ==========
Ratio of net expenses to average net assets (b)................................... 1.50% (a) 1.50% (a)
Ratio of net investment loss to average net assets (c)............................ (0.48%)(a) (0.42%)(a)
Total return (c).................................................................. (1.17%) 18.40%
Net assets, end of period (000's)................................................. $ 463 $ 118
(a)Annualized
(b)If the Fund had paid all of its expenses and there had been no reimbursement
of expenses by the investment adviser, this ratio would have been 59.88
percent for the six months ended March 31, 1998, and 88.96 percent for the
period ended September 30, 1997. (c) Computed giving effect to the
investment adviser's expense limitation undertaking.
(d)From commencement of operations on February 14, 1997.
</TABLE>
<PAGE>
<TABLE>
Financial Highlights CONTINUED
SR&F Special Portfolio
<CAPTION>
Six Months
Ended Period
March 31, Ended
1998 September 30,
(Unaudited) 1997 (b)
<S> <C> <C>
Ratio of net expenses to average net assets........................... 0.74%(a) 0.75%(a)
Ratio of net investment income to average net assets.................. 0.53%(a) 0.31%(a)
Portfolio turnover rate............................................... 22% 8%
Average commissions per share......................................... $0.0556 $0.0382
(a)Annualized
(b)From commencement of operations on February 3, 1997.
</TABLE>
<PAGE>
<TABLE>
Financial Highlights CONTINUED
<CAPTION>
SR&F Special Venture Portfolio
Six Months
Ended Period
March 31, Ended
1998 September 30,
(Unaudited) 1997 (b)
<S> <C> <C>
Ratio of net expenses to average net assets........................... 0.82%(a) 0.82%(a)
Ratio of net investment income to average net assets.................. 0.10%(a) 0.31%(a)
Portfolio turnover rate............................................... 48% 58%
Average commissions per share......................................... $0.0592 $0.0456
(a)Annualized
(b)From commencement of operations on February 3, 1997.
</TABLE>
<PAGE>
Stein Roe Advisor Trust
Trustees
Thomas W. Butch
President, Mutual Fund Division and Director,
Stein Roe & Farnham Incorporated
William W. Boyd
Chairman and Director, Sterling Plumbing
Group Inc.
Lindsay Cook
Senior Vice President, Liberty Financial
Companies, Inc.
Douglas A. Hacker
Senior Vice President and Chief Financial
Officer, United Airlines
Janet Langford Kelly
Senior Vice President, Secretary and General
Counsel, Sara Lee Corporation
Charles R. Nelson
Van Voorhis Professor of Political Economy,
University of Washington
Thomas C. Theobald
Managing Partner, William Blair Capital Partners
Officers
Thomas W. Butch, President
William D. Andrews, Executive Vice President
Loren A. Hansen, Executive Vice President
Hans P. Ziegler, Executive Vice President
Gary A. Anetsberger, Senior Vice President, Chief Financial Officer
David P. Brady, Vice President
Kevin M. Carome, Vice President, Assistant Secretary
Daniel K. Cantor, Vice President
Erik P. Gustafson, Vice President
David P. Harris, Vice President
Harvey B. Hirschhorn, Vice President
Michael T. Kennedy, Vice President
Stephen F. Lockman, Vice President
Eric S. Maddix, Vice President
Lynn C. Maddox, Vice President
Anne E. Marcel, Vice President
M. Jane McCart, Vice President
John S. McLandsborough, Vice President
Arthur J. McQueen, Vice President
Nicolette D. Parrish, Vice President, Assistant Secretary
Richard B. Peterson, Vice President
M. Gerard Sandel, Vice President
Gloria J. Santella, Vice President
Heidi J. Walter, Vice President, Secretary
Sharon R. Robertson, Controller
Scott E. Volk, Treasurer
Margaret O. Zwick, Assistant Treasurer
Janet B. Rysz, Assistant Secretary
Agents and Advisers
Stein Roe & Farnham Incorporated
Investment Adviser
State Street Bank and Trust Company
Custodian
Colonial Investors Service Center, Inc.
Transfer Agent
Bell, Boyd & Lloyd
Legal Counsel to the Trust
Arthur Andersen LLP
Independent Public Accountants
<PAGE>
Stein Roe & Farnham
One South Wacker Drive
Chicago, IL 60606-1130
www.steinroe.com
Liberty Financial Investments, Inc. Distributor.
<PAGE>
