As filed with the Securities and Exchange Commission on December 13, 2000
1933 Act File No. 333-51466
1940 Act File No. 811-08953
U. S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form N-2
(Check appropriate box or boxes)
[X] REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
[_] Pre-Effective Amendment No. __________
[_] Post-Effective Amendment No. __________
and
[X] REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940
[X] Amendment No. 7
Liberty Floating Rate Fund
(formerly Liberty-Stein Roe Advisor Floating Rate Fund)
Exact Name of Registrant as Specified in Declaration of Trust
One Financial Center
Boston, Massachusetts 02111
Address of Principal Executive Offices
(Number, Street, City, State, Zip Code)
(800) 338-0593
Registrant's Telephone Number, including Area Code
Kevin M. Carome Cameron S. Avery
Executive Vice-President Bell, Boyd & Lloyd LLC
Liberty Floating Rate Fund 70 W. Madison Street, Suite 3300
One Financial Center Chicago, IL 60602
Boston, MA 02111
Approximate Date of Proposed Public Offering: December 13, 2000
If any of the securities being registered on this form are offered on a delayed
or continuous basis in reliance on Rule 415 under the Securities Act of 1933,
other than securities offered in connection with a dividend reinvestment plan,
check the following box. [X]
It is proposed that this filing will become effective (check appropriate box)
[_] when declared effective pursuant to section 8(c)
[X] immediately upon filing pursuant to paragraph (b) of Rule 486
[ ] on (date) pursuant to paragraph (b) of Rule 486
[_] 60 days after filing pursuant to paragraph
(a) of Rule 486 [_] on(date) pursuant to paragraph (a) of Rule 486
[_] This post-effective amendment designates a new effective date for a
previously filed registration statement.
[_] The Form is filed to register additional securities for an offering
pursuant to Rule 462(b) under the Securities Act and the Securities Act
registration number of the earlier effective registration statement is
________.
The Registration Statement incorporates a combined prospectus pursuant
to Rule 429 which relates to earlier registration statements filed by the
Registrant on August 18, 1998, as amended to date (File No. 333-61751 - Class Z
Shares) and September 15, 1999, as amended to date (File No. 333-87177 - Class
A, B and C Shares).
<PAGE>
<TABLE>
<CAPTION>
CALCULATION OF REGISTRATION FEE UNDER THE SECURITIES ACT OF 1933
Proposed Maximum
Title of Securities Being Amount Proposed Maximum Aggregate Amount of
Registered Being Registered Offering Price Per Offering Price Registration Fee
Unit
<S> <C> <C> <C> <C>
Common Shares of Beneficial
Interest
Class A 20,000,000(1) $9.90 $198,000,000 $52,272.00(3)
Class B 15,000,000(1) $9.90 $148,500,000 $39,204.00(3)
Class C 20,000,000(1) $9.90 $198,000,000 $52,272.00(3)
Common Shares of Beneficial
Interest
Class A 10,000,000(2) $10.07 $100,700,000 $27,994.60(4)
Class B 10,000,000(2) $10.07 $100,700,000 $27,994.60(4)
Class C 10,000,000(2) $10.07 $100,700,000 $27,994.60(4)
Class Z 10,000,000(2) $10.00 $100,000,000 $29,500.60(4)
</TABLE>
(1) Currently being registered.
(2) Previously registered.
(3) Calculated pursuant to Rule 457(d) based on the net asset value per share of
$9.90 as of December 1, 2000.
(4) Estimated solely for the purpose of calculating the registration fee.
This Registration Statement has also been signed by Stein Roe Floating
Rate Limited Liability Company.
Registrant's prospectus (Class Z) and statement of additional
information (Class Z) dated November 1, 1999 (each as supplemented) as filed
with the Securities and Exchange Commission ("SEC") on August 18, 1998 as
amended to date (File Nos. 333- 61751 and 811-08953) and Registrant's prospectus
(Class A, B and C) and statement of additional information (Class A, B and C)
dated November 1, 1999 (each as supplemented) as filed with the SEC on September
15, 1999 (File Nos. 333-87177 and 811-08953) are incorporated into this filing
by reference.
<PAGE>
LIBERTY FLOATING RATE FUND
Cross reference sheet pursuant to rule 495(a) of Regulation C
Item No. Location or caption
References are to captions within the part of the registration statement to
which the particular item relates except as otherwise indicated
Part A (Prospectus)
1. Outside Front Cover Cover Page
2. Cover Pages; Other Cover Page; Outside Back Cover
Offering Information
3. Fee Table and Synopsis Fund Expenses; Prospectus Summary
4. Financial Highlights Financial Statements
5. Plan of Distribution Cover Page; Use of Proceeds; How
to Purchase Shares
6. Selling Shareholders Not applicable
7. Use of Proceeds Use of Proceeds; Investment
Objective and Policies; How the
Portfolio Invests; Special Risk
Considerations; Other Investment
Practices
8. General Description of
the Registrant Prospectus Summary; The Fund;
Investment Objectives and Policies;
How the Portfolio Invests; Special
Risk Considerations; Other
Investment Practice; How to
Purchase Shares; Organization and
Description of Shares; Master
Fund/Feeder Fund: Structure and
Risk Factors
9. Management Management of the Fund;
Organization and Description of
Shares; Master Fund/Feeder Fund:
Structure and Risk Factors
10. Capital Stock; Long- The Fund; Distributions and Income
Term Debt and Other Taxes; Periodic Repurchase Offers;
Securities Organization and Description of
Shares
11. Defaults and Arrears on
Senior Securities Not applicable
12. Legal Proceedings Not applicable
13. Table of Contents of Table of Contents of Statement
the Statement of of Additional Information
Additional Information
<PAGE>
Part B (Statement of Additional Information)
14. Cover Page Cover Page
15. Table of Contents Table of Contents
16. General Information
and History Not applicable
17. Investment Objective
and Policies Investment Policies; Portfolio
Investments and Strategies;
Investment Restrictions
18. Management Management
19. Control Persons and
Principal Holders of
Securities Principal Shareholders
20. Investment Advisory and
Other Services Investment Advisory and Other
Services; Bookkeeping and Accounting;
Distributor; Transfer Agent;
Custodian
21. Brokerage Allocation
and Other Practices Portfolio Transactions
22. Tax Status Additional Income Tax Considerations
23. Financial Statements Financial Statements
<PAGE>
Part C (Other Information)
24 Financial Statements and Exhibits
25 Marketing Arrangements
26 Other Expenses of Issuance and Distribution
27 Persons Controlled By or Under Common Control With
Registrant
28 Number of Holders of Securities
29 Indemnification
30 Business and Other Connections of Investment Adviser
31 Location of Accounts and Records
32 Management Services
33 Undertakings
<PAGE>
Liberty Floating Rate Fund
Supplement to November 1, 1999 Prospectus
Class A, B and C Shares
The prospectus is amended as follows:
1. All references in the prospectus to the number of Shares of each class of the
Fund registered with the SEC are amended to reflect the registration of an
additional shares of 20,000,000 for Class A, 15,000,000 for Class B and
20,000,000 for Class C, bringing the total number of registered shares of each
class to 30,000,000 for Class A, 25,000,000 for Class B and 20,000,000 for Class
C.
<TABLE>
<CAPTION>
2. The table on the inside front cover is deleted and revised as follows:
<S> <C> <C> <C>
Price to Public(1) Maximum Sales Load(2) Proceeds to Fund(3)
Per Class A Share $9.90 $0.35 $9.55
Total $198,000,000 $191,000,000
Per Class B Share $9.90 None $9.90
Total $148,500,000 $148,500,000
Per Class C Share $9.90 None $9.90
Total $198,000,000 $198,000,000
</TABLE>
(1) The shares are offered on a best efforts basis at a price equal to net
asset value. The shares are offered continuously. The minimum initial
purchase is $2,500. No arrangements have been made to place the funds in an
escrow, trust or similar arrangement. As of Dec. 1, 2000, net asset value
per share of the Fund was $9.90.
(2) The maximum initial sales load on Class A shares is 3.5% of the public
offering price. Class B and Class C shares are not subject to an initial
sales load but are subject to an early withdrawal charge. Class A, B and C
shares are subject to a distribution fee and a service fee. Liberty Funds
Distributor, Inc. (Distributor) will pay all sales commissions to
authorized dealers from its own assets.
(3) Assumes the sale of all shares registered hereby.
3. The paragraph under "USE OF PROCEEDS" is deleted and revised as follows:
The net proceeds from the sale of shares offered hereby will be
invested typically within 30 days after receipt, in accordance with the
Fund's investment objective and policies. Pending investment by the
Portfolio, the proceeds may be invested in high quality, short-term
securities, and the Portfolio may not achieve its objective during this
time. The estimated offering expenses in connection with this
Registration Statement are $251,829.40.
<TABLE>
<CAPTION>
4. The lead in and the table at the bottom of page 38 is deleted and revised as follows:
As of November 30, 2000, the following shares of the Fund were outstanding:
------------------------------- -------------- ----------------------------- ----------------------------
<S> <C> <C> <C>
(4)
(2) (3) Amount Outstanding
(1) Amount Amount held by Fund or for Exclusive of Amount Shown
Title of Class Authorized its Account Under (3)
------------------------------- -------------- ----------------------------- ----------------------------
------------------------------- -------------- ----------------------------- ----------------------------
Class A Unlimited 0 18,457,736
------------------------------- -------------- ----------------------------- ----------------------------
------------------------------- -------------- ----------------------------- ----------------------------
Class B Unlimited 0 13,419,523
------------------------------- -------------- ----------------------------- ----------------------------
------------------------------- -------------- ----------------------------- ----------------------------
Class C Unlimited 0 15,483,004
------------------------------- -------------- ----------------------------- ----------------------------
------------------------------- -------------- ----------------------------- ----------------------------
Class Z Unlimited 0 806,185
------------------------------- -------------- ----------------------------- ----------------------------
</TABLE>
<PAGE>
Liberty Floating Rate Fund
Supplement to November 1, 1999 Prospectus
Class Z Shares
The prospectus is amended as follows:
The lead in and the table at the bottom of page 38 is deleted and revised as
follows:
<TABLE>
<CAPTION>
As of November 30, 2000, the following shares of the Fund were outstanding:
------------------------------- -------------- ----------------------------- ----------------------------
<S> <C> <C> <C>
(4)
(2) (3) Amount Outstanding
(1) Amount Amount held by Fund or for Exclusive of Amount Shown
Title of Class Authorized its Account Under (3)
------------------------------- -------------- ----------------------------- ----------------------------
------------------------------- -------------- ----------------------------- ----------------------------
Class A Unlimited 0 18,457,736
------------------------------- -------------- ----------------------------- ----------------------------
------------------------------- -------------- ----------------------------- ----------------------------
Class B Unlimited 0 13,419,523
------------------------------- -------------- ----------------------------- ----------------------------
------------------------------- -------------- ----------------------------- ----------------------------
Class C Unlimited 0 15,483,004
------------------------------- -------------- ----------------------------- ----------------------------
------------------------------- -------------- ----------------------------- ----------------------------
Class Z Unlimited 0 806,185
------------------------------- -------------- ----------------------------- ----------------------------
</TABLE>
<PAGE>
STEIN ROE FLOATING RATE LIMITED LIABILITY COMPANY
INVESTMENT PORTFOLIO
August 31, 2000
(In thousands)
VARIABLE RATE SENIOR LOAN
INTERESTS(A)(B) - 93.1% PAR VALUE
--------------------------------------------------------
AEROSPACE/DEFENSE - 0.9% DeCrane Aircraft Holdings, Inc:
Term B 9/30/05 $2,958 $ 2,967
Term C 4/30/06 1,496 1,506
--------
4,473
--------
AUTOMOTIVE - 5.6% Blackstone Capital Co.,
Term 11/28/00 1,514 1,511
Blackstone Wasserstein Holdings,
Term 11/28/00 1,486 1,484
Dura Operating Corp.
Term B 3/31/06 5,000 5,002
J.L. French Automotive,
Term B 10/21/06 1,569 1,574
Key Plastics, Inc.,
Term B 3/15/06 1,474 1,128
Meridian Automotive Systems, Inc.,
Term B 3/31/07 6,000 6,009
Ontario Ltd.,
Term B 8/10/07 3,000 2,992
Stoneridge, Inc.,
Term B 12/31/05 1,970 1,984
Tenneco Automotive Inc.,
Term B 9/30/07 2,500 2,472
Term C 3/31/09 2,500 2,472
Venture Holdings Co., LLC
Term B 4/1/05 1,980 1,952
--------
28,580
--------
BROADCASTING - 1.8% Comcorp Broadcasting, Inc.,
Term B 6/30/07 1,338 1,337
Cumulus Media, Inc.,
Term B 9/30/07 1,500 1,500
Term C 2/28/08 1,000 1,000
White Knight Broadcasting,
Term B 6/30/07 1,365 1,364
Young Broadcasting Inc.,
Term B 12/31/06 4,000 4,027
--------
9,228
--------
PAR VALUE
--------------------------------------------------------
--------------------------------------------------------
BUILDING & REAL ESTATE - 2.4% Formica Corp.
Term B 4/30/06 $2,992 $ 3,007
Juno Lighting,
Term B 11/30/06 1,153 1,152
Tapco International Corp.,
Term B 6/23/07 3,094 3,092
Term C 6/23/08 1,856 1,855
Therma-Tru Holdings, Inc.,
Term B 5/9/07 2,985 2,985
--------
12,091
--------
BUSINESS SERVICES - 2.4%
Encompass,
Term C 5/10/07 4,489 4,489
NATG Holdings LLC,
Term B 12/14/06 3,914 3,926
Term C 6/30/07 4,000 4,009
--------
12,424
--------
CABLE/TELEVISION - 3.0% Century Cable Holdings, LLC.,
Term B 6/30/09 4,500 4,511
Charter Communications Operating, LLC.,
Incremental Term B 12/30/08 4,500 4,483
RCN Corp.,
Term B 6/3/07 6,000 6,068
--------
15,062
--------
CHEMICALS - 3.3% Huntsman ICI Chemicals, LLC.:
Term B 6/30/07 2,970 2,993
Term C 6/30/08 5,774 5,818
Lyondell Chemical Co.,
Term B 6/30/05 1,490 1,513
Term E 5/17/06 6,449 6,708
--------
17,032
--------
CONSUMER SERVICES - 0.7% AMF Bowling Worldwide, Inc.,
Axel A 3/31/02 84 76
Axel A-1 3/31/03 2,539 2,240
Axel B 3/31/03 1,330 1,175
--------
3,491
--------
See notes to investment portfolio.
4
7
STEIN ROE FLOATING RATE LIMITED LIABILITY COMPANY
INVESTMENT PORTFOLIO (CONTINUED)
PAR VALUE
--------------------------------------------------------
CONSUMER SPECIALTIES - 2.1%
American Safety Razor,
Term B 4/30/07 $1,472 $ 1,479
Doane Pet Care Co.,
Term B 12/31/05 1,496 1,501
Jostens, Inc.,
Term B 5/31/08 4,000 4,009
Weight Watchers International,
Term B 9/29/06 461 463
Term B-1 9/29/06 3,519 3,534
--------
10,986
--------
CONTAINER/PACKAGING - 1.4% Gaylord Container Corp.,
Term 6/19/04 4,795 4,811
Huntsman Packaging Corp.,
Term B 5/31/08 2,500 2,453
--------
7,264
--------
DIVERSIFIED COMMERCIAL SERVICES - 2.1% Concentra Operating Corp.,
Term B 6/30/06 2,650 2,493
Term C 6/30/07 1,325 1,246
EPS Solutions Corp.,
Term A 6/14/01 716 718
Outsourcing Solutions, Inc.,
Term B 5/31/06 5,972 5,986
--------
10,443
--------
DIVERSIFIED MANUFACTURING - 6.1% Flowserve Corp.,
Term B 6/30/08 5,500 5,531
Freedom Forge Corp.,
Term 12/17/04 1,087 1,086
General Cable Corp.,
Term B 5/27/07 724 722
Gentek Inc.,
Term C 10/31/07 5,000 5,025
Jason Inc.,
Term B 6/30/07 4,500 4,522
MTD Products Inc.,
Term B 6/20/07 3,500 3,473
Polymer Group, Inc.,
Term C 9/30/08 2,500 2,507
Polypore, Inc.,
Term B 12/31/06 2,000 2,005
SPX Corp.,
Term A 9/30/04 1,830 1,832
PAR VALUE
--------------------------------------------------------
Superior Telecom,
Term B 11/27/05 $1,932 $ 1,919
Tekni-Plex Inc.,
Term B 6/23/08 2,500 2,518
--------
31,140
--------
ELECTRIC UTILITIES - 1.2% AES New York Funding, LLC.,
Term B 5/14/02 4,000 3,995
Western Resources
Term B 3/17/03 2,000 2,007
--------
6,002
--------
ELECTRONIC COMPONENTS - 1.0% Knowles Electronics, Inc.,
Term B 6/29/07 1,000 925
Viasystems, Inc.,
Term B 3/31/07 4,000 4,003
--------
4,928
--------
ENGINEERING & CONSTRUCTION - 1.5% Morrison Knudsen Corp.,
Term B 7/7/07 6,000 5,977
URS Corp.,
Term B 6/9/06 743 743
Term C 6/9/07 743 743
--------
7,463
--------
ENVIRONMENTAL SERVICES - 3.2%
Allied Waste North America, Inc.:
Term B 7/23/06 3,182 3,072
Term C 7/23/07 3,818 3,686
Environmental Systems Products Holdings,
Term B 9/30/05 2,268 1,531
Stericycle Inc.,
Term B 11/10/06 3,746 3,778
Synagro Technologies, Inc.,
Term B 7/27/07 4,000 4,005
--------
16,072
--------
FARMING/AGRICULTURE - 1.1% Hines Nurseries, Inc.,
Term B 2/28/05 2,500 2,508
Quality Stores,
Term B 4/30/06 2,959 2,960
--------
5,468
--------
See notes to investment portfolio.
8
STEIN ROE FLOATING RATE LIMITED LIABILITY COMPANY
INVESTMENT PORTFOLIO (CONTINUED)
PAR VALUE
--------------------------------------------------------
FOOD CHAINS - 0.5% Big V Supermarkets, Inc.,
Term B 8/10/03 $2,462 $ 2,452
--------
FOOD MANUFACTURER - 1.6% American Seafoods Group, LLC.,
Term B 12/31/05 5,000 5,032
Merisant Corp.,
Term B 3/31/07 1,995 2,007
United Signature Foods,
Term C 2/28/05 990 993
--------
8,032
--------
HEALTHCARE SERVICES - 2.1% Alliance Imaging Inc.,
Term A 10/31/06 5,000 5,101
Quest Diagnostics Inc.,
Term B 8/16/06 517 522
Term C 8/16/07 478 482
Team Health, Inc.,
Term B 1/30/05 4,742 4,708
--------
10,813
--------
HOME FURNISHINGS - 0.1% Simmons Co.,
Term B 10/29/05 424 424
--------
HOSPITAL MANAGEMENT - 2.3%
Community Health Systems,
Term D 12/31/05 4,974 4,946
HCA-HealthONE, LLC.,
Term B 6/30/05 1,979 1,976
Vanguard Health Systems, Inc.,
Term B 2/1/06 4,975 4,985
--------
11,907
--------
HOTELS/RESORT - 3.0%
Starwood Hotels and Resorts,
Tranche 2-TL2 2/23/03 6,000 6,030
Wyndham International,
IRL 6/30/04 5,500 5,521
Term B 6/30/06 3,500 3,457
--------
15,008
--------
INDUSTRIAL MACHINERY - 1.1% Terex Corp.,
Term B 3/30/05 4,841 4,860
Term C 3/6/06 986 989
--------
5,849
--------
PAR VALUE
--------------------------------------------------------
INSURANCE BROKER/SERVICE - 1.1% Willis North America, Inc.,
Term C 2/19/08 $2,850 $ 2,864
Term D 8/19/08 2,850 2,864
--------
5,728
--------
MANUFACTURING - 0.7% Thermadyne Holdings Corp:
Term B 5/22/05 1,896 1,849
Term C 5/22/06 1,896 1,849
--------
3,698
--------
MEDIA CONGLOMERATES - 0.7%
Bridge Information Systems,
Term B 7/7/05 2,478 2,280
Multidraw 7/7/03 1,427 1,313
--------
3,593
--------
MEDICAL SPECIALTIES - 1.3% Dade Behring:
Term B 6/30/06 2,565 2,582
Term C 6/30/07 2,565 2,582
Stryker Corp.:
Term B 12/4/05 718 722
Term C 12/4/06 921 926
--------
6,812
--------
METAL FABRICATIONS - 2.0% Mueller Group, Inc.,
Term B 8/16/06 1,511 1,519
Term C 8/16/07 1,511 1,526
Term D 8/16/07 1,746 1,767
OM Group, Inc.,
Term B 3/31/07 5,486 5,496
--------
10,308
--------
MILITARY/GOVERNMENT - 1.0% Titan Corp.,
Term C 6/1/07 4,858 4,869
--------
MOVIES/ENTERTAINMENT - 1.9% Metro-Goldwyn-Mayer Studios Inc.,
Term A 3/31/05 5,000 5,011
Six Flags Theme Park
Term B 9/30/05 3,000 3,013
United Artists Theatre Co.,
Term B 4/21/06 821 609
Term C 4/21/07 1,126 836
--------
9,469
--------
See notes to investment portfolio.
6
9
STEIN ROE FLOATING RATE LIMITED LIABILITY COMPANY
INVESTMENT PORTFOLIO (CONTINUED)
PAR VALUE
--------------------------------------------------------
OFFICE SUPPLIES - 0.8% Mail-Well I Corp.,
Term B 2/22/07 $3,990 $ 3,993
--------
OIL REFINING/MARKETING - 0.9% Port Arthur Finance Corp.,
Term B 6/15/07 4,620 4,611
--------
PAPER - 1.4%
Bear Island Paper,
Term 12/31/05 290 291
Stone Container,
Term E 10/1/03 2,725 2,733
Term F 12/31/05 3,283 3,294
Term G 12/31/06 433 430
Term H 12/31/06 462 459
--------
7,207
--------
PHARMACEUTICALS - 0.7% King Pharmaceutical, Inc.,
Term B 12/18/06 3,566 3,580
--------
PRINTING/PUBLISHING - 2.4%
American Media Operations, Inc.,
Term B 4/1/07 3,000 3,022
DIMAC Corp.,
Term B 6/30/06 571 500
Term C 12/31/06 429 375
Merrill Communications, LLC.,
Term B 11/30/07 2,481 2,495
WRC Media Inc.,
Term B 11/30/06 5,978 6,044
--------
12,436
--------
RAIL/SHIPPING - 0.8%
Kansas City Southern Railway Co.,
Term B 12/31/06 1,000 1,006
RailAmerica Transportation Corp.,
Term B 12/31/06 2,969 2,986
--------
3,992
--------
REAL ESTATE INVESTMENT TRUST - 0.7% Prison Realty Trust, Inc.,
Term B 12/31/02 2,985 2,537
Term C 12/31/02 990 843
--------
3,380
--------
PAR VALUE
--------------------------------------------------------
RENTAL/LEASING COMPANIES - 0.5% Rent-A-Center Inc.,
Term B 1/31/06 $1,386 $ 1,391
Term C 1/31/07 1,059 1,059
--------
2,450
--------
RETAIL STORES - 2.1% Duane Reade:
Additional Term C 2/15/06 1,492 1,493
Term C 2/15/06 2,955 2,953
Pantry Inc.,
Term B 1/31/06 1,969 1,977
SDM Corp.,
Term C 2/4/08 2,000 2,009
Term E 2/4/09 2,000 2,009
--------
10,441
--------
SEMICONDUCTORS - 2.9% Amkor Technology, Inc.,
Term B 9/30/05 8,479 8,591
Semiconductor Components Industries, LLC.,
Term B 8/4/06 481 487
Term C 8/4/07 519 524
Term D 8/4/07 5,300 5,330
--------
14,932
--------
STEEL/IRON ORE - 2.3% Ispat Inland, LP.,
Term B 7/16/05 2,481 2,475
Term C 7/16/06 2,481 2,475
UCAR Finance Inc.,
Term B 12/31/07 6,478 6,520
--------
11,470
--------
TELECOMMUNICATIONS
INFRASTRUCTURE EQUIPMENT - 2.6%
American Towers Inc.,
Term B 12/31/07 4,000 4,027
Crown Castle Operating Co.,
Term B 2/28/08 4,500 4,512
Global Crossing Holdings, Inc.,
Term B 6/30/06 4,500 4,530
--------
13,069
--------
See notes to investment portfolio.
STEIN ROE FLOATING RATE LIMITED LIABILITY COMPANY
INVESTMENT PORTFOLIO (CONTINUED)
PAR VALUE
--------------------------------------------------------
TELECOMMUNICATIONS SERVICES - 2.8%
Alaska Communications Systems Holdings, Inc.,
Term B 11/14/07 $1,579 $ 1,584
Term C 5/14/08 1,421 1,425
ICG Communications, Inc.,
Term B 3/31/06 990 991
KMC Telecom, Inc.,
Term 7/1/07 2,000 1,998
McLeod USA Inc.,
Term B 5/31/08 4,000 4,013
Nextlink Communications Corp.,
Term B 10/31/05 4,000 4,037
--------
14,048
--------
TEXTILES - 1.0%
Synthetic Industries,
Term B 12/14/07 5,000 5,005
--------
TRANSPORTATION - 1.1%
Evergreen International Aviation,
Term B-1 5/7/03 984 970
Term B-2 5/7/04 3,936 3,883
Gemini Air,
Term A 8/12/05 785 784
--------
5,637
--------
TRANSPORTATION MANUFACTURING - 1.5%
Motor Coach Industries,
Term B 6/16/06 1,485 1,486
Transportation Technology,
Term B 3/31/07 5,985 6,008
--------
7,494
--------
WIRELESS COMMUNICATION - 9.4% American Cellular Corp.,
Term B 3/31/08 2,100 2,102
Term C 3/31/09 2,400 2,402
Centennial Cellular Operating Co.,
LLC.,
Term B 5/31/07 3,470 3,492
Term C 11/30/07 982 989
Cook Inlet/Voicestream Operating Co., LLC.,
Term B 12/31/08 4,000 4,035
Dobson Operating Co.,
Term B 12/31/07 2,114 2,126
Dobson-Sygnet Wireless Inc.,
Term B 3/23/07 899 903
Term C 12/23/07 907 911
PAR VALUE
--------------------------------------------------------
Nextel Finance Co., Inc.,
Term B 6/30/08 $2,750 $ 2,769
Term C
12/31/08 2,750 2,769
Term D 3/31/09 2,000 1,997
Alpha-Nextel Partners, Inc.,
Term 1/29/08 6,000 6,042
Rural Cellular Corp.,
Term B 10/3/08 2,250 2,251
Term C 4/3/09 2,250 2,251
Ubiquitel Operating Co.,
Term B 11/17/08 4,500 4,526
Voicestream PCS Holding Corp.,
Vendor A 6/30/09 8,000 8,028
--------
47,593
--------
Total Variable Rate Senior Loan
Interests (cost of $473,887) 472,447
--------
SHORT-TERM OBLIGATIONS - 6.1% PAR VALUE
--------------------------------------------------------
Baxter International Loan,
6.600% 9/1/00 5,000 5,000
Burlington Northern Santa Fe,
6.750% 9/1/00 2,000 2,000
Dow Chemical Corp.,
6.631% 9/1/00 5,000 5,000
Enron Corp.,
6.809% 9/1/00 2,950 2,950
Safeway,
6.750% 9/1/00 3,000 3,000
Target Corp.,
6.631% 9/1/00 5,000 5,000
Texas Utilities,
6.780% 9/1/00 3,000 3,000
Transamerica Financial,
6.650% 9/1/00 5,000 5,000
--------
Total Short-Term Obligations
(cost of $30,950) 30,950
--------
Total Investments -- 99.2%
(cost of $504,837)(c) 503,397
--------
OTHER ASSETS & LIABILITIES, NET - 0.8% 4,268
--------------------------------------------------------
NET ASSETS - 100.0% $507,665
--------
NOTES TO PORTFOLIO OF INVESTMENTS:
(a) Senior Loans in the Portfolio generally are subject to mandatory and/or
optional prepayment. Because of these mandatory prepayment conditions and
See notes to financial statements.
STEIN ROE FLOATING RATE LIMITED LIABILITY COMPANY
INVESTMENT PORTFOLIO (CONTINUED)
because there may be significant economic incentives for a Borrower to
prepay, prepayments of Senior Loans in the Portfolio may occur. As a
result, the actual remaining maturity of Senior Loans held in the Portfolio
may be substantially less than the stated maturities shown. Although the
Advisor is unable to accurately estimate the actual remaining maturity of
individual Senior Loans, based on historical experience, the Advisor
believes that the actual economic maturity of the Senior Loans held in its
portfolio will be approximately 18-24 months.
(b) Senior Loans in which the Portfolio invests generally pay interest at rates
which are periodically redetermined by reference to a base lending rate plus
a premium. These base lending rates are generally (i) the prime rate offered
by one or more major United States banks, (ii) the lending rate offered by
one or more European banks such as the London Inter-Bank Offered Rate
("LIBOR") and (iii) the certificate of deposit rate. Senior Loans are
generally considered to be restricted in that the Portfolio ordinarily is
contractually obligated to receive approval from the Agent Bank and/or
borrower prior to the disposition of a Senior Loan.
(c) At August 31, 2000, the cost of investments for financial reporting and
federal income tax purposes was identical. Net unrealized depreciation was
$1,440, consisting of gross unrealized appreciation of $2,135 and gross
unrealized depreciation of $3,575.
See notes to financial statements.
STEIN ROE FLOATING RATE LIMITED LIABILITY COMPANY
STATEMENT OF ASSETS & LIABILITIES
August 31, 2000
(All amounts in thousands)
ASSETS
Investments, at market value
(cost $504,837) $ 503,397
Interest and fees receivable 4,311
Cash 161
Receivable for investments
sold 960
Other 19
----------
Total Assets 508,848
----------
LIABILITIES
Payable to investment advisor 194
Deferred facility fees 963
Other 26
----------
Total Liabilities 1,183
----------
Net assets applicable to
investors' beneficial interest $ 507,665
----------
----------
STATEMENT OF OPERATIONS
For the Year Ended August 31, 2000
(All amounts in thousands)
INVESTMENT INCOME
Interest $ 24,468
Fees 317
---------
Total Investment Income 24,785
---------
EXPENSES
Management fees 1,137
Bookkeeping fees 30
Transfer agent fees 6
Audit fees 20
Trustees' fees 11
Custodian fee 14
Legal fees 10
Loan servicing fees 128
Other 36
---------
Total expenses 1,392
---------
Net Investment Income 23,393
---------
REALIZED AND UNREALIZED GAINS (LOSSES) ON
INVESTMENTS
Net Realized Gains on
Investments 243
Net Change in Unrealized
Appreciation/Depreciation on
Investments (1,717)
---------
Net Loss (1,474)
---------
Increase in Net Assets
Resulting from Operations $ 21,919
---------
See notes to financial statements.
<TABLE>
STEIN ROE FLOATING RATE LIMITED LIABILITY COMPANY
STATEMENT OF CHANGES IN NET ASSETS
(All amounts in thousands)
FOR THE FOR THE
YEAR ENDED PERIOD ENDED
AUGUST 31, 2000 AUGUST 31, 1999(A)
---------------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS
Net investment income $ 23,393 $ 4,274
Net realized gains on investments 243 38
Net change in unrealized appreciation/depreciation on
investments (1,717) 277
-------- --------
Net increase in net assets resulting from operations 21,919 4,589
-------- --------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTEREST
Contributions 375,731 124,223
Withdrawals (18,278) (519)
-------- --------
Net increase from transactions in investors' beneficial
interest 357,453 123,704
-------- --------
Net increase in net assets 379,372 128,293
TOTAL NET ASSETS
Beginning of period 128,293 --
-------- --------
End of period $507,665 $128,293
======== ========
(a) From commencement of operations on December 17, 1998.
See notes to financial statements.
</TABLE>
STEIN ROE FLOATING RATE LIMITED LIABILITY COMPANY
STATEMENT OF CASH FLOWS
For the Year Ended August 31, 2000
(All amounts in thousands)
CASH PROVIDED (USED) BY FINANCING
ACTIVITIES
Proceeds from capital contributions $ 375,731
Payments for capital withdrawals (18,278)
----------
357,453
----------
CASH PROVIDED (USED) BY OPERATIONS
Purchases of loan interests (404,693)
Proceeds from sales of loan interests 50,751
Net purchases of short-term portfolio
securities (23,150)
Interest, fees and other income received 24,785
Accretion income (142)
Operating expenses paid (1,392)
Net change in receivables/payables related
to operations (3,462)
----------
(357,303)
----------
Net increase in cash 150
Cash, beginning of year 11
----------
Cash, end of year $ 161
----------
See notes to financial statements.
LIBERTY FLOATING RATE FUND
STATEMENT OF ASSETS & LIABILITIES
August 31, 2000
(All amounts in thousands, except per-share data)
ASSETS
Investment in Portfolio, at
value $ 322,505
Receivable for Fund shares sold 7,663
Expense reimbursement due from
Advisor 97
Other 23
----------
Total Assets 330,288
----------
LIABILITIES
Payable for distributions 769
ACCRUED:
Administration fee 50
Transfer agent fee 43
Bookkeeping fee 3
Distribution fee - Class B 4
Distribution fee - Class C 6
----------
Total Liabilities 875
----------
NET ASSETS $ 329,413
----------
----------
Net asset value & redemption
price per share - Class A
($147,209/14,722) $ 10.00(a)
----------
----------
Maximum offering price per
share - Class A ($10.00/0.9650) $ 10.36(b)
----------
----------
Net asset value & offering price
per share - Class B
($83,695/8,369) $ 10.00(a)
----------
----------
Net asset value & offering price
per share - Class C
($91,664/9,167) $ 10.00(a)
----------
----------
Net asset value, redemption &
offering price per share - Class
Z ($6,845/684) $ 10.00
----------
----------
ANALYSIS OF NET ASSETS
Paid-in capital $ 329,805
Overdistributed net investment
income (28)
Net realized gain on
investments 94
Net unrealized depreciation on
investments (458)
----------
$ 329,413
----------
----------
STATEMENT OF OPERATIONS
For the Year Ended August 31, 2000
(All amounts in thousands)
INVESTMENT INCOME
Interest and fees allocated from
Portfolio $ 9,634
EXPENSES
Expenses allocated from
Portfolio $ 544
Administrative fees 195
Bookkeeping fees 25
Transfer agent fees 165
Service fees - Class A 119
Service fees - Class B 66
Service fees - Class C 63
Distribution fees - Class A 44
Distribution fees - Class B 114
Distribution fees - Class C 145
Trustees' fees 8
Custodian fees 1
Audit fees 7
Legal fees 57
Registration fees 116
Reports to shareholders 44
Other 10
-------
Total expenses 1,723
Fees and expenses waived or
borne by the Advisor (381)
-------
Net Expenses 1,342
----------
Net Investment Income 8,292
----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS ALLOCATED FROM PORTFOLIO Net
Realized Gain 94 Net Change in Unrealized Appreciation/Depreciation (459)
----------
Net Loss (365)
----------
Increase in Net Assets Resulting
from Operations $ 7,927
----------
(a) Redemption price per share is equal to net asset value less any applicable
early withdrawal charge.
(b) On sales of $100,000 or more the offering price is reduced.
See notes to financial statements.
LIBERTY FLOATING RATE FUND--STATEMENT OF CHANGES IN NET ASSETS
(All amounts in thousands)
YEAR ENDED PERIOD ENDED
AUGUST 31, AUGUST 31,
2000(A) 1999(B)
-----------------------------------------------------
OPERATIONS:
Net investment income $ 8,292 $ 30
Net realized gain 94 (c)
Net change in unrealized
appreciation/depreciation (459) 1
-------- ----
Net Increase from
Operations 7,927 31
-------- ----
DISTRIBUTIONS TO SHAREHOLDERS:
Distributions from net
investment income -
Class A (3,948) --
Distributions from net
realized gains - Class A (c) --
Distributions from net
investment income -
Class B (2,087) --
Distributions from net
realized gains - Class B (c) --
Distributions from net
investment income -
Class C (1,956) --
Distributions from net
realized gains - Class C (c) --
Distributions from net
investment income -
Class Z (329) (30)
Distributions from net
realized gains - Class Z (c) --
In excess of net
investment
income - Class Z -- (c)
-------- ----
(8,320) (30)
-------- ----
SHARE TRANSACTIONS:
Subscriptions to Fund
shares - Class A 145,898 --
Value of distributions
reinvested - Class A 2,733 --
Redemption of Fund
shares - Class A (1,278) --
-------- ----
147,353 --
-------- ----
Subscriptions to Fund
shares - Class B 84,309 --
Value of distributions
reinvested - Class B 1,133 --
Redemption of Fund
shares - Class B (1,639) --
-------- ----
83,803 --
-------- ----
Subscriptions to Fund
shares - Class C 91,170 --
Value of distributions
reinvested - Class C 1,238 --
Redemption of Fund
shares - Class C (621) --
-------- ----
91,787 --
-------- ----
YEAR ENDED PERIOD ENDED
AUGUST 31, AUGUST 31,
2000(A) 1999(B)
-----------------------------------------------------
Subscriptions to Fund
shares - Class Z $ 6,826 $912
Value of distributions
reinvested - Class Z 70 23
Redemption of Fund
shares - Class Z (926) (43)
-------- ----
5,970 892
-------- ----
Net increase from Fund
share transactions 328,913 892
-------- ----
Net increase in net
assets 328,520 893
TOTAL NET ASSETS:
Beginning of period 893 --
-------- ----
End of period $329,413 $893
-------- ----
Undistributed
(Overdistributed) Net
Investment Income at End
of Period $ (28) $ (c)
-------- --------
ANALYSIS OF CHANGES IN SHARES OF BENEFICIAL INTEREST:
Subscriptions to Fund
shares - Class A 14,577 --
Issued in reinvestment of
distributions - Class A 273 --
Redemptions of Fund
shares - Class A (128) --
-------- ----
14,722
-------- ----
Subscriptions to Fund
shares - Class B 8,420 --
Issued in reinvestment of
distributions - Class B 113 --
Redemptions of Fund
shares - Class B (164) --
-------- ----
8,369 --
-------- ----
Subscriptions to Fund
shares - Class C 9,105 --
Issued in reinvestment of
distributions - Class C 124 --
Redemptions of Fund
shares - Class C (62) --
-------- ----
9,167 --
-------- ----
Subscriptions to Fund
shares - Class Z 680 91
Issued in reinvestment of
distributions - Class Z 7 2
Redemptions of Fund
shares - Class Z (92) (4)
-------- ----
595 89
-------- ----
(a) Class A, Class B and Class C shares were initially offered on November 2,
1999.
(b) From commencement of operations on December 17, 1998.
(c) Rounds to less than one thousand.
See notes to financial statements.
NOTES TO FINANCIAL STATEMENTS
NOTE 1. ORGANIZATION
Liberty Floating Rate Fund (formerly Stein Roe Floating Rate Income Fund) (the
"Fund") is a non-diversified, closed-end management investment company organized
as a Massachusetts business trust. The Fund invests all of its investable assets
in Stein Roe Floating Rate Limited Liability Company (the "Portfolio"), which
seeks to provide a high-level of current income, consistent with preservation of
capital. The Fund may issue an unlimited number of shares. Effective November 2,
1999, the Fund began offering Class A, Class B and Class C shares. The Fund
offers four classes of shares: Class A, Class B, Class C and Class Z shares.
Class A shares are sold with a front end sales charge and an annual distribution
fee. A 1.00% early withdrawal charge 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 an
annual distribution fee and an early withdrawal charge. 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
an early withdrawal charge on redemptions made within one year after purchase
and an annual distribution fee. 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.
The Portfolio is a non-diversified, closed-end management investment company
organized as a Delaware limited liability company. The Portfolio commenced
operations December 17, 1998. At commencement, the Fund contributed $100,000 in
cash in exchange for beneficial ownership of the Portfolio. At December 17,
1998, Liberty-Stein Roe Institutional Floating Rate Income Fund also contributed
cash of $100,000. The Portfolio allocates income, expenses, realized and
unrealized gains and losses to each investor on a daily basis, based on methods
approved by the Internal Revenue Service. At August 31, 2000, Liberty Floating
Rate Fund and Liberty-Stein Roe Institutional Floating Rate Income Fund owned
63.5% and 36.5%, respectively, of the Portfolio.
The preparation of financial statements in conformity with generally accepted
accounting principles 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 revenues and expenses during the period. Actual results
could differ from those estimates. The following is a summary of significant
accounting policies that are consistently followed by the Fund in the
preparation of its financial statements.
NOTE 2. SECURITY VALUATION AND TRANSACTIONS:
Senior loans are generally valued using market prices or quotations provided by
banks, dealers or pricing services with respect to secondary market
transactions. In the absence of actual market values, Senior Loans will be
valued by Stein Roe & Farnham Inc. (the Advisor), an indirect, wholly-owned
subsidiary of Liberty Financial Companies, Inc. ("Liberty"), at fair value,
which is intended to approximate market value. In determining fair value, the
Advisor will consider on an ongoing basis, among other factors, (i) the
creditworthiness of the Borrower; (ii) the current interest rate, the interest
rate redetermination period and maturity of such Senior Loan interests; and
(iii) recent prices in the market for instruments of similar quality, rate and
interest rate redetermination period and maturity. Because of uncertainty
inherent in the valuation process, the estimated value of a Senior Loan interest
may differ significantly from the value that would have been used had there been
market activity for that Senior Loan interest.
Short-term obligations with a maturity of 60 days or less are valued at
amortized cost.
Security transactions are accounted for on the date the securities are
purchased, sold or mature.
Cost is determined and gains and losses are based upon the specific
identification method for both financial statement and federal income tax
purposes.
DETERMINATION OF CLASS NET ASSET VALUES AND FINANCIAL HIGHLIGHTS:
All income, expenses (other than the Class A, Class B and Class C service and
distribution fees), and realized and unrealized gains (losses) are allocated to
each class proportionately on a daily basis for purposes of determining the net
asset value of each class.
Class A, Class B and Class C per share data and ratios are calculated by
adjusting the expense and net investment income per share data and ratios for
the Fund for the entire period by the service and distribution fees per share
applicable to Class A, Class B and Class C shares.
FEDERAL INCOME TAXES:
No provision is made for federal income taxes since (a) the Fund elects to be
taxed as a "regulated investment company" and make distributions to its
shareholders to be relieved of all federal income taxes
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
under provisions of current federal tax law; and (b) the Portfolio is treated as
a partnership for federal income tax purposes and all of its income is allocated
to its owners based on methods approved by the Internal Revenue Service.
INTEREST INCOME, DEBT DISCOUNT AND PREMIUM:
Interest income is recorded on the accrual basis. Facility fees received are
treated as market discounts. Market premiums and discounts are amortized over
the estimated life of each applicable security.
DISTRIBUTIONS TO SHAREHOLDERS:
The Fund declares and records distributions daily and pays monthly.
The amount and character of income and gains to be distributed are determined in
accordance with income tax regulations which may differ from generally accepted
accounting principles. 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.
STATEMENT OF CASH FLOWS:
Information on financial transactions which have been settled through the
receipt or disbursement of cash is presented in the Statement of Cash Flows. The
cash amount shown in the Statement of Cash Flows is the amount included in the
Portfolio's Statement of Assets and Liabilities and represents cash on hand at
its custodian bank account and does not include any short-term investments at
August 31, 2000.
NOTE 2. FEES AND COMPENSATION PAID TO AFFILIATES
MANAGEMENT FEE:
Stein Roe & Farnham, Inc. (the Advisor), is the investment Advisor of the
Portfolio and receives a monthly fee equal to 0.45% annually of the Portfolio's
average net assets.
ADMINISTRATION FEE:
Colonial Management Associates, Inc. (the Administrator), an affiliate of the
Advisor, provides accounting and other services for a monthly fee equal to 0.20%
annually of the Fund's average net assets.
BOOKKEEPING FEE:
The Administrator provides bookkeeping and pricing services for a monthly fee
equal to $25,000 annually plus 0.0025% annually of the Portfolio's and Fund's
average net assets over $50 million.
TRANSFER AGENT FEE:
Liberty Funds Services, Inc. (the Transfer Agent), an affiliate of the
Administrator, provides shareholder services for a monthly fee comprised of
0.17% annually of the Fund's average net assets plus charges based on the number
of shareholder accounts and transactions and receives reimbursement for certain
out of pocket expenses. The Portfolio pays the Transfer Agent a monthly fee
equal to $6,000 annually.
UNDERWRITING DISCOUNTS, SERVICE AND DISTRIBUTION FEES:
Liberty Funds Distributor, Inc. (the Distributor), a subsidiary of the
Administrator is the Fund's principal underwriter. For the year ended August 31,
2000, the Fund has been advised that the Distributor retained no net
underwriting discounts on sales of the Fund's Class A shares and received no
early withdrawal charges (EWC) on Class A, Class B and Class C share
redemptions, respectively.
The Fund has adopted a 12b-1 plan which requires it to pay the Distributor a
service fee equal to 0.25% annually on Class A, Class B and Class C net assets
as of the 20th of each month. The plan also requires the payment of a monthly
distribution fee to the Distributor equal to 0.10%, 0.45% and 0.60% annually of
the average net assets attributable to Class A, Class B and Class C shares,
respectively.
The EWC and the fees received from the 12b-1 plan are used principally as
repayment to the Distributor for amounts paid by the Distributor to dealers who
sold such shares.
EXPENSE LIMITS:
The Advisor has agreed, until further notice, to waive fees and bear certain
Fund expenses to the extent that total expenses (inclusive of allocated
Portfolio expenses but exclusive of service fees, distribution fees, brokerage
commissions, interest, commitment fees, taxes and extraordinary expenses, if
any) exceed 0.80% of average net assets.
OTHER:
The Portfolio and Fund pays no compensation to their officers, all of whom are
employees of the Advisor or Administrator.
INVESTMENT ACTIVITY:
During the year ended August 31, 2000, purchases and sales of investments, other
than short-term obligations, were $404,693,379 and $50,750,597, respectively.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
OTHER:
The Portfolio may focus its investments in certain industries, subjecting it to
greater risk than a fund that is more diversified.
NOTE 3. TENDER OF SHARES
The Board of Trustees has adopted a policy of making tender offers on a
quarterly basis. The Board has designated the 15(th) day of March, June,
September and December, each year, or the next business day if the 15(th) is not
a business day as the Repurchase Request Deadline. Tender offers are made for a
portion of the Fund's then outstanding shares at the net asset value of the
shares as of the Repurchase Pricing Date. The tender offer amount, which is
determined by the Board of Trustees, will be at least 5% and no more than 25% of
the total number of shares outstanding on the Repurchase Request Deadline.
During the year ended August 31, 2000, there were four tender offers in
November, February, May and August. The Fund offered to repurchase 10% of its
shares and 0.01%, 1.55%, 1.71% and 3.36%, respectively, of shares outstanding
were tendered.
NOTE 4. SENIOR LOAN PARTICIPATION COMMITMENTS
The Portfolio invests primarily in participations and assignments, or acts as a
party to the primary lending syndicate of a Variable Rate Senior Loan interest
to United States corporations, partnerships, and other entities. If the lead
lender in a typical lending syndicate becomes insolvent, enters FDIC
receivership or, if not FDIC insured, enters into bankruptcy, the Portfolio may
incur certain costs and delays in receiving payment or may suffer a loss of
principal and/or interest. When the Portfolio purchases a participation of a
Senior Loan interest, the Portfolio typically enters into a contractual
agreement with the lender or other third party selling the participation, but
not with the borrower directly. As such, the Portfolio assumes the credit risk
of the Borrower, Selling Participant or other persons interpositioned between
the Portfolio and the Borrower.
At August 31, 2000, the following sets forth the selling participants with
respect to interests in Senior Loans purchased by the Portfolio on a
participation basis.
SELLING PRINCIPAL
PARTICIPANT AMOUNT VALUE
----------- --------- -----
Goldman Sachs Credit
Partners LP $3,986,031 $3,821,000
The ability of borrowers to meet their obligations may be affected by economic
developments in a specific industry.
<TABLE>
<CAPTION>
STEIN ROE FLOATING RATE LIMITED LIABILITY COMPANY
FINANCIAL HIGHLIGHTS
YEAR ENDED PERIOD ENDED
AUGUST 31, 2000 AUGUST 31, 1999(A)
---------------------------------------------------------------------------------------------------
<S> <C> <C>
RATIOS TO AVERAGE NET ASSETS
Expenses 0.55% 0.96%(b)
Net investment income 9.26% 7.59%(b)
Portfolio turnover 21% 17%
(a) From commencement of operations on December 17, 1998.
(b) Annualized.
</TABLE>
<TABLE>
<CAPTION>
LIBERTY FLOATING RATE FUND -- FINANCIAL HIGHLIGHTS (CONTINUED)
Selected per-share data (for a share outstanding throughout the period), ratios
and supplemental data:
YEAR ENDED AUGUST 31, 2000
CLASS A(A) CLASS B(A) CLASS C(A) CLASS Z
------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NET ASSET VALUE -- BEGINNING OF PERIOD $ 10.05 $ 10.05 $ 10.05 $ 10.07
-------- -------- -------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.71 0.67 0.66 0.87
Net realized and unrealized losses allocated from (0.07)
Portfolio (0.05) (0.05) (0.05)
-------- -------- -------- --------
Total from Investment Operations 0.66 0.62 0.61 0.80
-------- -------- -------- --------
DISTRIBUTIONS:
Net investment income (0.71) (0.67) (0.66) (0.87)
From net realized gains (g) (g) (g) (g)
-------- -------- -------- --------
Total Distributions (0.71) (0.67) (0.66) (0.87)
-------- -------- -------- --------
NET ASSET VALUE -- END OF PERIOD $ 10.00 $ 10.00 $ 10.00 $ 10.00
======== ======== ======== ========
Ratio of net expenses to average net assets(b) 1.15%(f) 1.50%(f) 1.65%(f) 0.80%
Ratio of net investment income to average net assets(c) 8.53%(f) 8.18%(f) 8.03%(f) 8.94%
Total return(d)(e) 6.79%(h) 6.35%(h) 6.20%(h) 8.23%
Net assets, end of period (000's) $147,209 $ 83,695 $ 91,664 $ 6,845
(a) Class A, Class B, and Class C shares were initially offered on November 2,
1999. Per share data reflects activity from that date.
(b) If the Fund had paid all of its expenses and there had been no reimbursement
of expenses by the Advisor, these ratios would have been 1.28%, 1.63%, 1.78%
and 1.19%, respectively.
(c) Computed giving effect to the Advisor's expense limitation undertaking.
(d) Had the Advisor not waived or reimbursed a portion of expenses, total return
would have been reduced.
(e) Total return at net asset value assuming all distributions reinvested and
no initial sales charge or early withdrawal charge.
(f) Annualized.
(g) Rounds to less than $0.01.
(h) Not annualized.
</TABLE>
Federal Income Tax information (unaudited)
The Fund designates $2,522 of long term capital gains earned during fiscal year
ended August 31, 2000.
PERIOD ENDED
AUGUST 31,
1999(A)
--------------------------------------------------------------------------
NET ASSET VALUE -- BEGINNING OF PERIOD $ 10.00
--------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.47
Net realized and unrealized gains allocated from Portfolio 0.07
--------
Total from Investment Operations 0.54
--------
DISTRIBUTIONS:
Net investment income (0.47)
In excess of net investment income (b)
--------
Total Distributions (0.47)
--------
NET ASSET VALUE -- END OF PERIOD $ 10.07
========
Ratio of net expenses to average net assets(c) 1.30%
Ratio of net investment income to average net assets(d)(e) 7.10%
Total return(f)(g) 5.43%
Net assets, end of period (000's) $ 893
(a) From commencement of operations on December 17, 1998.
(b) Rounds to less than $0.01.
(c) If the Fund had paid all of its expenses and there had been no
reimbursement of expenses by the Advisor, this ratio would have been
56.79%.
(d) Computed giving effect to the Advisor's expense limitation undertaking.
(e) Annualized.
(f) Not annualized.
(g) Had the Advisor not waived or reimbursed a portion of expenses, total
return would have been reduced.
REPORT OF PRICEWATERHOUSECOOPERS LLP, INDEPENDENT ACCOUNTANTS
TO THE TRUSTEES AND THE SHAREHOLDERS OF
LIBERTY FLOATING RATE FUND
STEIN ROE FLOATING RATE LIMITED LIABILITY COMPANY
In our opinion, the accompanying statements of assets and liabilities, including
the investment portfolio, and the related statements of operations, changes in
net assets, cash flows and the financial highlights present fairly, in all
material respects, the financial position of Liberty Floating Rate Fund (the
"Fund") and Stein Roe Floating Rate Limited Liability Company (the "Portfolio")
at August 31, 2000, the results of each of their operations, the changes in each
of their net assets and the Portfolio's cash flows and each of their financial
highlights for the periods indicated, in conformity with accounting principles
generally accepted in the United States of America. These financial statements
and the financial highlights (hereafter referred to as "financial statements")
are the responsibility of the Portfolio's and 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 portfolio positions at August 31, 2000 by correspondence with
the custodian and lending or agent banks provide a reasonable basis for our
opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
October 25, 2000
<PAGE>
PART C
Item 24. Financial Statements and Exhibits
(1) Financial Statements:
(a) Financial statements included in Part A of this
registration statement: None.
(b) Financial statements included in Part B of this
registration statement: 8/31/00 annual report.
(2) Exhibits: [Note: As used herein, the term "Registration
Statement" refers to the Registration Statement of the
Registrant on Form N-2 under the Securities Act of 1933,
No. 333-61751. The term "Pre-Effective Amendment" refers
to a pre-effective amendment to the Registration
Statement and the term "PEA" refers to a post-effective
amendment to the Registration Statement.]
a.(1) Agreement and Declaration of Trust as amended and
restated on Nov. 3, 1998. (Exhibit a to Pre-Effective
Amendment No. 1.)*
(2) Amendment effective Oct. 18, 1999 to Agreement and
Declaration of Trust. (Exhibit to PEA # 1)*
(3) Amendment dated May 22, 2000 to the Agreement and Declaration of Trust.
b. (1) By-laws of Registrant dated August 13, 1998 as amended on
Sept. 25, 1998. (Exhibit b to Pre-Effective Amendment No.
1.)*
(2) Amendment to By-laws.
(3) Amendment to By-laws.
c. None.
d. None.
e. None.
f. None.
g. Portfolio Management Agreement between Stein Roe Floating
Rate Limited Liability Company and Stein Roe & Farnham
Incorporated dated 11/20/98 as amended through 8/3/99.
(Exhibit g to PEA #2.)*
h. Underwriting Agreement between Registrant and Liberty Funds
Distributor, Inc. dated 8/4/99. (Exhibit h to PEA #2.)*
i. None.
j. Form of Custodian Contract between Registrant and State
Street Bank and Trust Company. (Exhibit j to Pre-Effective
Amendment No. 1.)*
k. (1) Transfer Agency Agreement between Registrant and
Liberty Funds Services, Inc. dated 8/3/99. (Exhibit
k(1) to PEA #2.)*
(2) Accounting and Bookkeeping Agreement between
Registrant and Stein Roe & Farnham Incorporated
dated 8/3/99. (Exhibit k(2) to PEA #2.)*
(3) Administrative Agreement between Registrant and Stein Roe & Farnham
Incorporated dated 11/20/98 as amended through 8/3/99. (Exhibit k(3)
to PEA #2.)*
l. (1) Opinion and consent of Bell, Boyd & Lloyd. (Exhibit 1
to Pre-Effective Amendment No. 1.)*
(2) Opinion and consent of Bell, Boyd & Lloyd with respect to Classes A,
B and C. (Exhibit to PEA 1)*.
(3)Opinion and consent of Bell, Boyd & Lloyd with respect to additional
Class A,B, and C shares.
m. None.
n. Consent of PricewaterhouseCoopers LLP..
o. None.
p. Initial Capital Agreement. (Exhibit p to Pre-Effective
Amendment No. 2.)*
q. Stein Roe & Farnham Funds Individual Retirement Account
Plan. Stein Roe & Farnham Prototype Paired Defined
Contribution Plan. (Exhibit q to Pre-Effective Amendment
No. 1.)*
r. (1) Miscellaneous: Rule 12b-1 distribution plan and Rule 18f-3
plan. (Exhibit r to PEA #4.)*
(2) Revised Code of Ethics-filed as Exhibit 23(p) to Registration
Statement on Form N-1A to Liberty Funds Trust V (file #033-12109 and
811-05030) filed on August 31, 2000 and hereby incorporated by
reference and made a part of this Registration Statement.
----------
*Incorporated by reference.
Item 25. Marketing Arrangements
None.
Item 26. Other Expenses of Issuance and Distribution
Registration Fees $143,748
National Association of Securities
Dealers, Inc. Fees $0
State Fees $0
Printing Fees $1,000**
Rating Agency Fees $0
Legal and Accounting Fees $6,750**
------------
**Estimated fees
Item 27. Persons Controlled By or Under Common Control with Registrant
The Registrant does not consider that it is directly or indirectly
controlling, controlled by, or under common control with other persons within
the meaning of this Item. The information in the Statement of Additional
Information under the captions "Management," "Investment Advisory and Other
Services" and "Transfer Agent" is incorporated by reference.
<PAGE>
Item 28. Number of Holders of Securities
Number of Record Holders
Title of Class as of 10/31/00
----------------------------------- ------------------------
Class A 3,233
Class B 3,069
Class C 2,762
Class Z 177
Item 29. Indemnification
Article Eight of the Agreement and Declaration of Trust of Registrant
(Exhibit 1), which Article is incorporated herein by reference, provides that
Registrant shall provide indemnification of its trustees and officers (including
each person who serves or has served at Registrant's request as a director,
officer, or trustee of another organization in which Registrant has any interest
as a shareholder, creditor or otherwise) ("Covered Persons") under specified
circumstances.
Section 17(h) of the Investment Company Act of 1940 ("1940 Act") provides
that neither the Agreement and Declaration of Trust nor the By-Laws of
Registrant, nor any other instrument pursuant to which Registrant is organized
or administered, shall contain any provision which protects or purports to
protect any trustee or officer of Registrant against any liability to Registrant
or its shareholders to which he would otherwise be subject by reason of willful
misfeasance, bad faith, gross negligence, or reckless disregard of the duties
involved in the conduct of his office. In accordance with Section 17(h) of the
1940 Act, Article Eight shall not protect any person against any liability to
Registrant or its shareholders to which he would otherwise be subject by reason
of willful misfeasance, bad faith, gross negligence, or reckless disregard of
the duties involved in the conduct of his office.
Unless otherwise permitted under the 1940 Act,
(i) Article Eight does not protect any person against any liability to
Registrant or to its shareholders to which he would otherwise be subject by
reason of willful misfeasance, bad faith, gross negligence, or reckless
disregard of the duties involved in the conduct of his office;
(ii) in the absence of a final decision on the merits by a court or other
body before whom a proceeding was brought that a Covered Person was not liable
by reason of willful misfeasance, bad faith, gross negligence, or reckless
disregard of the duties involved in the conduct of his office, no
indemnification is permitted under Article Eight unless a determination that
such person was not so liable is made on behalf of Registrant by (a) the vote of
a majority of the trustees who are not "interested persons" of Registrant, as
defined in Section 2(a)(19) of the 1940 Act ("disinterested trustees"), or (b)
an independent legal counsel as expressed in a written opinion; and
(iii) Registrant will not advance attorneys' fees or other expenses
incurred by a Covered Person in connection with a civil or criminal action, suit
or proceeding unless Registrant receives an undertaking by or on behalf of the
Covered Person to repay the advance (unless it is ultimately determined that he
is entitled to indemnification) and (a) the Covered Person provides security for
his undertaking, or (b) Registrant is insured against losses arising by reason
of any lawful advances, or (c) a majority of the disinterested, non-party
trustees of Registrant or an independent legal counsel as expressed in a written
opinion, determine, based on a review of readily available facts (as opposed to
a full trial-type inquiry), that there is reason to believe that the Covered
Person ultimately will be found entitled to indemnification.
Any approval of indemnification pursuant to Article Eight does not prevent
the recovery from any Covered Person of any amount paid to such Covered Person
in accordance with Article Eight as indemnification if such Covered Person is
subsequently adjudicated by a court of competent jurisdiction not to have acted
in good faith in the reasonable belief that such Covered Person's action was in,
or not opposed to, the best interests of Registrant or to have been liable to
Registrant or its shareholders by reason of willful misfeasance, bad faith,
gross negligence, or reckless disregard of the duties involved in the conduct of
such Covered Person's office.
Article Eight also provides that its indemnification provisions are not
exclusive.
Insofar as indemnification for liabilities arising under the Securities Act
of 1933 (the "Securities Act") may be permitted to trustees, officers and
controlling persons of the Registrant pursuant to the foregoing provisions or
otherwise, the Registrant has been advised that in the opinion of the Securities
and Exchange Commission such indemnification is against public policy as
expressed in the Securities Act and is, therefore, unenforceable. In the event
that a claim for indemnification against such liabilities (other than the
payment by the Registrant of expenses incurred or paid by a trustee, officer, or
controlling person of the Registrant in connection with the successful defense
of any action, suit or proceeding) is asserted by such trustee, officer or
controlling person in connection with the securities being registered, the
Registrant will, unless in the opinion of its counsel the matter has been
settled by controlling precedent, submit to a court of appropriate jurisdiction
the question whether such indemnification by it is against public policy as
expressed in the Securities Act and will be governed by the final adjudication
of such issue.
Registrant, its trustees and officers, its investment adviser, the other
investment companies advised by the adviser, and persons affiliated with them
are insured against certain expenses in connection with the defense of actions,
suits, or proceedings, and certain liabilities that might be imposed as a result
of such actions, suits, or proceedings. Registrant will not pay any portion of
the premium for coverage under such insurance that would (1) protect any trustee
or officer against any liability to Registrant or its shareholders to which he
would otherwise be subject by reason of willful misfeasance, bad faith, gross
negligence, or reckless disregard of the duties involved in the conduct of his
office or (2) protect its investment adviser or principal underwriter, if any,
against any liability to Registrant or its shareholders to which such person
would otherwise be subject by reason of willful misfeasance, bad faith, gross
negligence, in the performance of its duties, or by reason of its reckless
disregard of its duties and obligations under its contract or agreement with the
Registrant; for this purpose the Registrant will rely on an allocation of
premiums determined by the insurance company.
Pursuant to the indemnification agreement among the Registrant, its
transfer agent and its investment adviser, the Registrant, its trustees,
officers and employees, its transfer agent and the transfer agent's directors,
officers, and employees are indemnified by Registrant's investment adviser
against any and all losses, liabilities, damages, claims and expenses arising
out of any act or omission of the Registrant or its transfer agent performed in
conformity with a request of the investment adviser that the transfer agent and
the Registrant deviate from their normal procedures in connection with the
issue, redemption or transfer of shares for a client of the investment adviser.
Registrant, its trustees, officers, employees and representatives and each
person, if any, who controls the Registrant within the meaning of Section 15 of
the Securities Act of 1933 are indemnified by the distributor of Registrant's
shares (the "distributor"), pursuant to the terms of the distribution agreement,
which governs the distribution of Registrant's shares, against any and all
losses, liabilities, damages, claims and expenses arising out of the acquisition
of any shares of the Registrant by any person which (i) may be based upon any
wrongful act by the distributor or any of the distributor's directors, officers,
employees or representatives or (ii) may be based upon any untrue or alleged
untrue statement of a material fact contained in a registration statement,
prospectus, statement of additional information, shareholder report or other
information covering shares of the Registrant filed or made public by the
Registrant or any amendment thereof or supplement thereto or the omission or
alleged omission to state therein a material fact required to be stated therein
or necessary to make the statement therein not misleading if such statement or
omission was made in reliance upon information furnished to the Registrant by
the distributor in writing. In no case does the distributor's indemnity
indemnify an indemnified party against any liability to which such indemnified
party would otherwise be subject by reason of willful misfeasance, bad faith, or
negligence in the performance of its or his duties or by reason of its or his
reckless disregard of its or his obligations and duties under the distribution
agreement.
Item 30. Business and Other Connections of Investment Adviser
Stein Roe & Farnham Incorporated ("Stein Roe"), the investment adviser, is a
wholly owned subsidiary of SteinRoe Services Inc. ("SSI"), which in turn is a
wholly owned subsidiary of Liberty Financial Companies, Inc., which is a
majority owned subsidiary of Liberty Corporation Holdings, Inc., which is a
wholly owned subsidiary of LFC Holdings, Inc., which in turn is a subsidiary of
Liberty Mutual Equity Corporation, which in turn is a subsidiary of Liberty
Mutual Insurance Company. Stein Roe acts as investment adviser to individuals,
trustees, pension and profit-sharing plans, charitable organizations, and other
investors. In addition to Registrant, it also acts as investment adviser to
other investment companies having different investment policies.
For a two-year business history of officers and directors of Stein Roe, please
refer to the Form ADV of Stein Roe & Farnham Incorporated and to the section of
the statement of additional information (Part B) entitled "Investment Advisory
and Other Services."
<PAGE>
Certain directors and officers of Stein Roe also serve and have during the past
two years served in various capacities as officers, directors, or trustees of
SSI, of Colonial Management Associates, Inc. (which is a subsidiary of Liberty
Financial Companies, Inc.), and of the Registrant and other investment companies
managed by Stein Roe. (The listed entities are located at One South Wacker
Drive, Chicago, Illinois 60606, except for Colonial Management Associates, Inc.,
which is located at One Financial Center, Boston, MA 02111, and SteinRoe
Variable Investment Trust and Liberty Variable Investment Trust, which are
located at Federal Reserve Plaza, Boston, MA 02210.) A list of such capacities
is given below.
POSITION FORMERLY
HELD WITHIN
CURRENT POSITION PAST TWO YEARS
------------------- --------------
STEINROE SERVICES INC.
Kevin M. Carome Assistant Clerk
Kenneth J. Kozanda VP; Treasurer
C. Allen Merritt, Jr. Director; Vice President
COLONIAL MANAGEMENT ASSOCIATES, INC.
Ophelia L. Barsketis Senior Vice President
Kevin M. Carome Senior Vice President
William M. Garrison Vice President
Stephen E. Gibson Chairman, President and
Chief Executive Officer
Loren A. Hansen Senior Vice President
Clare M. Hounsell Vice President
Deborah A. Jansen Senior Vice President
North T. Jersild Vice President
Joseph R. Palombo Executive Vice President
Yvonne T. Shields Vice President
SR&F BASE TRUST
William D. Andrews Executive Vice-President
Christine Balzano Vice President
David P. Brady Vice-President
Daniel K. Cantor Vice-President
Kevin M. Carome Executive VP VP; Secretary
Denise E. Chasmer Vice President
Stephen E. Gibson President
Erik P. Gustafson Vice-President
Loren A. Hansen Executive Vice-President
Harvey B. Hirschhorn Vice-President
Michael T. Kennedy Vice-President
Gail D. Knudsen Vice President
Stephen F. Lockman Vice-President
Mary D. McKenzie Vice President
Jane M. Naeseth Vice-President
Maureen G. Newman Vice-President
Nicholas S. Norton Vice President
Joseph R. Palombo Trustee
Veronica M. Wallace Vice-President
<PAGE>
LIBERTY-STEIN ROE FUNDS INCOME TRUST; LIBERTY-STEIN ROE FUNDS
INSTITUTIONAL TRUST; AND LIBERTY-STEIN ROE FUNDS TRUST
William D. Andrews Executive Vice-President
Christine Balzano Vice President
Kevin M. Carome Executive VP VP;Secy.
Denise E. Chasmer Vice President
Stephen E. Gibson President
Loren A. Hansen Executive Vice-President
Michael T. Kennedy Vice-President
Gail D. Knudsen Vice President
Stephen F. Lockman Vice-President
Mary D. McKenzie Vice President
Jane M. Naeseth Vice-President
Nicholas S. Norton Vice President
Joseph R. Palombo Trustee
LIBERTY-STEIN ROE FUNDS INVESTMENT TRUST
William D. Andrews Executive Vice-President
Christine Balzano Vice President
David P. Brady Vice-President
Daniel K. Cantor Vice-President
Kevin M. Carome Executive VP VP; Sec; Asst. Secy.
Denise E. Chasmer Vice President
William M. Garrison Vice-President
Stephen E. Gibson President
Erik P. Gustafson Vice-President
Loren A. Hansen Executive Vice-President
Harvey B. Hirschhorn Vice-President
Gail D. Knudson Vice President
Mary D. McKenzie Vice President
Nicholas S. Norton Vice President
Joseph R. Palombo Trustee
LIBERTY-STEIN ROE ADVISOR TRUST
William D. Andrews Executive Vice-President
David P. Brady Vice-President
Christine Balzano Vice President
Daniel K. Cantor Vice-President
Kevin M. Carome Executive VP; VP;Sec; Asst. Secy.
Denise E. Chasmer Vice President
Stephen E. Gibson President
Erik P. Gustafson Vice-President
Loren A. Hansen Executive Vice-President
Harvey B. Hirschhorn Vice-President
Gail D. Knudson Vice President
Michael T. Kennedy Vice-President
Stephen F. Lockman Vice-President
Mary D. McKenzie Vice President
Maureen G. Newman Vice-President
Nicholas S. Norton Vice President
Joseph R. Palombo Trustee
LIBERTY-STEIN ROE FUNDS MUNICIPAL TRUST
William D. Andrews Executive Vice-President
Christine Balzano Vice President
Kevin M. Carome Executive VP VP; Sec; Asst. Secy.
Denise E. Chasmer Vice President
Stephen E. Gibson President
Loren A. Hansen Executive Vice-President
Brian M. Hartford Vice-President
Gail D. Knudsen Vice President
William C. Loring Vice-President
Mary D. McKenzie Vice President
Maureen G. Newman Vice-President
Nicholas S. Norton Vice President
Joseph R. Palombo Trustee
Veronica M. Wallace Vice-President
STEINROE VARIABLE INVESTMENT TRUST
William D. Andrews Executive Vice-President
Christine Balzano Vice President
Kevin M. Carome Executive VP VP; Sec; Asst. Secy.
Denise E. Chasmer Vice President
William M. Garrison Vice President
Stephen E. Gibson President
Erik P. Gustafson Vice President
Loren A. Hansen Executive Vice-President
Harvey B. Hirschhorn Vice President
Michael T. Kennedy Vice President
Gail D. Knudsen Vice President
Mary D. McKenzie Vice President
Jane M. Naeseth Vice President
Nicholas S. Norton Vice President
Joseph R. Palombo Trustee
William M. Wadden IV Vice President
LIBERTY FLOATING RATE FUND; LIBERTY-STEIN ROE
INSTITUTIONAL FLOATING RATE INCOME FUND, STEIN ROE FLOATING RATE
LIMITED LIABILITY COMPANY
William D. Andrews Executive Vice-President
Kevin M. Carome Executive VP VP;Sec; Asst. Secy.
Christine Balzano Vice President
Denise E. Chasmer Vice President
Stephen E. Gibson President
Brian W. Good Vice-President
James R. Fellows Vice-President
Loren A. Hansen Executive Vice-President
Gail D. Knudsen Vice President
Mary D. McKenzie Vice President
Nicholas S. Norton Vice President
Joseph R. Palombo Trustee
LIBERTY VARIABLE INVESTMENT TRUST
Ophelia L. Barsketis Vice President
Deborah A. Jansen Vice President
Kevin M. Carome Vice President
Item. 31. Location of Accounts and Records
Registrant maintains the records required to be maintained by it under
Rules 31a-1(a), 31a-1(b), and 31a-2(a) under the Investment Company Act of 1940
at its principal executive offices at One South Wacker Drive, Chicago, Illinois
60606. Certain records, including records relating to Registrant's shareholders
and the physical possession of its securities, may be maintained pursuant to
Rule 31a-3 at the main office of Registrant's transfer agent or custodian.
Item 32. Management Services
None.
Item 33. Undertakings
1. The Registrant undertakes to suspend the offering of shares until the
prospectus is amended if: (a) subsequent to the effective date of the
Registration Statement, the net asset value declines more than 10 percent
from its net asset value as of the effective date of the Registration
Statement; or (b) the net asset value increases to an amount greater than
its net proceeds as stated in the prospectus.
2. Not applicable.
3. Not applicable.
4. The Registrant undertakes:
a. To file, during any period in which offers or sales are
being made, a post-effective amendment to the
registration statement:
(1) To include any prospectus required by Section
10(a)(3) of the 1933 Act;
(2) To reflect in the prospectus any facts or events after the effective
date of the registration statement (or the most recent post-effective
amendment thereof) which, individually or in the aggregate, represent
a fundamental change in the information set forth in the registration
statement; and
(3) To include any material information with respect to the plan of
distribution not previously disclosed in the registration statement
or any material change to such information in the registration
statement.
b. That, for the purpose of determining any liability under the 1933 Act,
each such post-effective amendment shall be deemed to be a new
registration statement relating to the securities offered therein, and
the offering of those securities at that time shall be deemed to be the
initial bona fide offering thereof; and
c. To remove from registration by means of a post-effective amendment any
of the securities being registered which remain unsold at the
termination of the offering.
d. To send by first class mail or other means designed to ensure equally
prompt delivery, within two business days of receipt of a written or
oral request, any Statement of Additional Information.
5. Not applicable
<PAGE>
POWER OF ATTORNEY FOR SIGNATURE
The undersigned constitutes Nancy L. Conlin, Suzan M. Barron, William J. Ballou,
Russell L. Kane, Vincent P. Pietropaolo, Ellen Harrington, Tracy S. DiRienzo,
Pamela A. McGrath, Cameron S. Avery and Stacy H. Winick individually, as my true
and lawful attorney, with full power to each of them to sign for me and in my
name, any and all registration statements and any and all amendments to the
registration statements filed under the Securities Act of 1933 or the Investment
Company Act of 1940 with the Securities and Exchange Commission for the purpose
of complying with such registration requirements in my capacity as a trustee or
officer of Liberty-Stein Roe Funds Investment Trust, Liberty-Stein Roe Funds
Income Trust, Liberty-Stein Roe Funds Institutional Trust, Liberty-Stein Roe
Funds Trust, Liberty-Stein Roe Funds Municipal Trust, Liberty-Stein Roe Funds
Advisor Trust, SR&F Base Trust, Stein Roe Variable Investment Trust,
Liberty-Stein Roe Advisor Floating Rate Fund, Liberty-Stein Roe Institutional
Floating Rate Income Fund, and Stein Roe Floating Rate Limited Liability Company
(together "Liberty-Stein Roe Funds"). This Power of Attorney authorizes the
above individuals to sign my name and will remain in full force and effect until
specifically rescinded by me.
I specifically permit this Power of Attorney to be filed, as an exhibit to a
registration statement or amendment to a registration statement of any or all
Liberty-Stein Roe Funds with the Securities and Exchange Commission and I
request that this Power of Attorney then constitutes authority to sign
additional amendments and registration statements by virtue of its incorporation
by reference into the registration statements and amendments for the
Liberty-Stein Roe Funds.
In witness, I have signed this Power of Attorney on this 22nd day of May, 2000.
/s/ John A.Bacon, Jr.
John A. Bacon, Jr.
<PAGE>
POWER OF ATTORNEY FOR SIGNATURE
The undersigned constitutes Nancy L. Conlin, Suzan M. Barron, William J. Ballou,
Russell L. Kane, Vincent P. Pietropaolo, Ellen Harrington, Tracy S. DiRienzo,
Pamela A. McGrath, Cameron S. Avery and Stacy H. Winick individually, as my true
and lawful attorney, with full power to each of them to sign for me and in my
name, any and all registration statements and any and all amendments to the
registration statements filed under the Securities Act of 1933 or the Investment
Company Act of 1940 with the Securities and Exchange Commission for the purpose
of complying with such registration requirements in my capacity as a trustee or
officer of Liberty-Stein Roe Funds Investment Trust, Liberty-Stein Roe Funds
Income Trust, Liberty-Stein Roe Funds Institutional Trust, Liberty-Stein Roe
Funds Trust, Liberty-Stein Roe Funds Municipal Trust, Liberty-Stein Roe Funds
Advisor Trust, SR&F Base Trust, Stein Roe Variable Investment Trust,
Liberty-Stein Roe Advisor Floating Rate Fund, Liberty-Stein Roe Institutional
Floating Rate Income Fund, and Stein Roe Floating Rate Limited Liability Company
(together "Liberty-Stein Roe Funds"). This Power of Attorney authorizes the
above individuals to sign my name and will remain in full force and effect until
specifically rescinded by me.
I specifically permit this Power of Attorney to be filed, as an exhibit to a
registration statement or amendment to a registration statement of any or all
Liberty-Stein Roe Funds with the Securities and Exchange Commission and I
request that this Power of Attorney then constitutes authority to sign
additional amendments and registration statements by virtue of its incorporation
by reference into the registration statements and amendments for the
Liberty-Stein Roe Funds.
In witness, I have signed this Power of Attorney on this 22nd day of May, 2000.
/s/ William W.Boyd
William W. Boyd
<PAGE>
POWER OF ATTORNEY FOR SIGNATURE
The undersigned constitutes Nancy L. Conlin, Suzan M. Barron, William J. Ballou,
Russell L. Kane, Vincent P. Pietropaolo, Ellen Harrington, Tracy S. DiRienzo,
Pamela A. McGrath, Cameron S. Avery and Stacy H. Winick individually, as my true
and lawful attorney, with full power to each of them to sign for me and in my
name, any and all registration statements and any and all amendments to the
registration statements filed under the Securities Act of 1933 or the Investment
Company Act of 1940 with the Securities and Exchange Commission for the purpose
of complying with such registration requirements in my capacity as a trustee or
officer of Liberty-Stein Roe Funds Investment Trust, Liberty-Stein Roe Funds
Income Trust, Liberty-Stein Roe Funds Institutional Trust, Liberty-Stein Roe
Funds Trust, Liberty-Stein Roe Funds Municipal Trust, Liberty-Stein Roe Funds
Advisor Trust, SR&F Base Trust, Stein Roe Variable Investment Trust,
Liberty-Stein Roe Advisor Floating Rate Fund, Liberty-Stein Roe Institutional
Floating Rate Income Fund, and Stein Roe Floating Rate Limited Liability Company
(together "Liberty-Stein Roe Funds"). This Power of Attorney authorizes the
above individuals to sign my name and will remain in full force and effect until
specifically rescinded by me.
I specifically permit this Power of Attorney to be filed, as an exhibit to a
registration statement or amendment to a registration statement of any or all
Liberty-Stein Roe Funds with the Securities and Exchange Commission and I
request that this Power of Attorney then constitutes authority to sign
additional amendments and registration statements by virtue of its incorporation
by reference into the registration statements and amendments for the
Liberty-Stein Roe Funds.
In witness, I have signed this Power of Attorney on this 22nd day of May, 2000.
/s/ Lindsey Cook
Lindsay Cook
<PAGE>
POWER OF ATTORNEY FOR SIGNATURE
The undersigned constitutes Nancy L. Conlin, Suzan M. Barron, William J. Ballou,
Russell L. Kane, Vincent P. Pietropaolo, Ellen Harrington, Tracy S. DiRienzo,
Pamela A. McGrath, Cameron S. Avery and Stacy H. Winick individually, as my true
and lawful attorney, with full power to each of them to sign for me and in my
name, any and all registration statements and any and all amendments to the
registration statements filed under the Securities Act of 1933 or the Investment
Company Act of 1940 with the Securities and Exchange Commission for the purpose
of complying with such registration requirements in my capacity as a trustee or
officer of Liberty-Stein Roe Funds Investment Trust, Liberty-Stein Roe Funds
Income Trust, Liberty-Stein Roe Funds Institutional Trust, Liberty-Stein Roe
Funds Trust, Liberty-Stein Roe Funds Municipal Trust, Liberty-Stein Roe Funds
Advisor Trust, SR&F Base Trust, Stein Roe Variable Investment Trust,
Liberty-Stein Roe Advisor Floating Rate Fund, Liberty-Stein Roe Institutional
Floating Rate Income Fund, and Stein Roe Floating Rate Limited Liability Company
(together "Liberty-Stein Roe Funds"). This Power of Attorney authorizes the
above individuals to sign my name and will remain in full force and effect until
specifically rescinded by me.
I specifically permit this Power of Attorney to be filed, as an exhibit to a
registration statement or amendment to a registration statement of any or all
Liberty-Stein Roe Funds with the Securities and Exchange Commission and I
request that this Power of Attorney then constitutes authority to sign
additional amendments and registration statements by virtue of its incorporation
by reference into the registration statements and amendments for the
Liberty-Stein Roe Funds.
In witness, I have signed this Power of Attorney on this 22nd day of May, 2000.
/s/ Douglas A. Hacker
Douglas A. Hacker
<PAGE>
POWER OF ATTORNEY FOR SIGNATURE
The undersigned constitutes Nancy L. Conlin, Suzan M. Barron, William J. Ballou,
Russell L. Kane, Vincent P. Pietropaolo, Ellen Harrington, Tracy S. DiRienzo,
Pamela A. McGrath, Cameron S. Avery and Stacy H. Winick individually, as my true
and lawful attorney, with full power to each of them to sign for me and in my
name, any and all registration statements and any and all amendments to the
registration statements filed under the Securities Act of 1933 or the Investment
Company Act of 1940 with the Securities and Exchange Commission for the purpose
of complying with such registration requirements in my capacity as a trustee or
officer of Liberty-Stein Roe Funds Investment Trust, Liberty-Stein Roe Funds
Income Trust, Liberty-Stein Roe Funds Institutional Trust, Liberty-Stein Roe
Funds Trust, Liberty-Stein Roe Funds Municipal Trust, Liberty-Stein Roe Funds
Advisor Trust, SR&F Base Trust, Stein Roe Variable Investment Trust,
Liberty-Stein Roe Advisor Floating Rate Fund, Liberty-Stein Roe Institutional
Floating Rate Income Fund, and Stein Roe Floating Rate Limited Liability Company
(together "Liberty-Stein Roe Funds"). This Power of Attorney authorizes the
above individuals to sign my name and will remain in full force and effect until
specifically rescinded by me.
I specifically permit this Power of Attorney to be filed, as an exhibit to a
registration statement or amendment to a registration statement of any or all
Liberty-Stein Roe Funds with the Securities and Exchange Commission and I
request that this Power of Attorney then constitutes authority to sign
additional amendments and registration statements by virtue of its incorporation
by reference into the registration statements and amendments for the
Liberty-Stein Roe Funds.
In witness, I have signed this Power of Attorney on this 22nd day of May, 2000.
/s/ Janet Langford Kelly
Janet Langford Kelly
<PAGE>
POWER OF ATTORNEY FOR SIGNATURE
The undersigned constitutes Nancy L. Conlin, Suzan M. Barron, William J. Ballou,
Russell L. Kane, Vincent P. Pietropaolo, Ellen Harrington, Tracy S. DiRienzo,
Pamela A. McGrath, Cameron S. Avery and Stacy H. Winick individually, as my true
and lawful attorney, with full power to each of them to sign for me and in my
name, any and all registration statements and any and all amendments to the
registration statements filed under the Securities Act of 1933 or the Investment
Company Act of 1940 with the Securities and Exchange Commission for the purpose
of complying with such registration requirements in my capacity as a trustee or
officer of Liberty-Stein Roe Funds Investment Trust, Liberty-Stein Roe Funds
Income Trust, Liberty-Stein Roe Funds Institutional Trust, Liberty-Stein Roe
Funds Trust, Liberty-Stein Roe Funds Municipal Trust, Liberty-Stein Roe Funds
Advisor Trust, SR&F Base Trust, Stein Roe Variable Investment Trust,
Liberty-Stein Roe Advisor Floating Rate Fund, Liberty-Stein Roe Institutional
Floating Rate Income Fund, and Stein Roe Floating Rate Limited Liability Company
(together "Liberty-Stein Roe Funds"). This Power of Attorney authorizes the
above individuals to sign my name and will remain in full force and effect until
specifically rescinded by me.
I specifically permit this Power of Attorney to be filed, as an exhibit to a
registration statement or amendment to a registration statement of any or all
Liberty-Stein Roe Funds with the Securities and Exchange Commission and I
request that this Power of Attorney then constitutes authority to sign
additional amendments and registration statements by virtue of its incorporation
by reference into the registration statements and amendments for the
Liberty-Stein Roe Funds.
In witness, I have signed this Power of Attorney on this 22nd day of May, 2000.
/s/ Charles R. Nelson
Charles R. Nelson
<PAGE>
POWER OF ATTORNEY FOR SIGNATURE
The undersigned constitutes Nancy L. Conlin, Suzan M. Barron, William J. Ballou,
Russell L. Kane, Vincent P. Pietropaolo, Ellen Harrington, Tracy S. DiRienzo,
Pamela A. McGrath, Cameron S. Avery and Stacy H. Winick individually, as my true
and lawful attorney, with full power to each of them to sign for me and in my
name, any and all registration statements and any and all amendments to the
registration statements filed under the Securities Act of 1933 or the Investment
Company Act of 1940 with the Securities and Exchange Commission for the purpose
of complying with such registration requirements in my capacity as a trustee or
officer of Liberty-Stein Roe Funds Investment Trust, Liberty-Stein Roe Funds
Income Trust, Liberty-Stein Roe Funds Institutional Trust, Liberty-Stein Roe
Funds Trust, Liberty-Stein Roe Funds Municipal Trust, Liberty-Stein Roe Funds
Advisor Trust, SR&F Base Trust, Stein Roe Variable Investment Trust,
Liberty-Stein Roe Advisor Floating Rate Fund, Liberty-Stein Roe Institutional
Floating Rate Income Fund, and Stein Roe Floating Rate Limited Liability Company
(together "Liberty-Stein Roe Funds"). This Power of Attorney authorizes the
above individuals to sign my name and will remain in full force and effect until
specifically rescinded by me.
I specifically permit this Power of Attorney to be filed, as an exhibit to a
registration statement or amendment to a registration statement of any or all
Liberty-Stein Roe Funds with the Securities and Exchange Commission and I
request that this Power of Attorney then constitutes authority to sign
additional amendments and registration statements by virtue of its incorporation
by reference into the registration statements and amendments for the
Liberty-Stein Roe Funds.
In witness, I have signed this Power of Attorney on this 22nd day of May, 2000.
/s/ Thomas C. Theobald
Thomas C. Theobald
<PAGE>
POWER OF ATTORNEY FOR SIGNATURE
The undersigned constitutes Kevin M. Carome, Suzan M. Barron, William J. Ballou,
Russell L. Kane, Vincent P. Pietropaolo, Ellen Harrington, Tracy S. DiRienzo,
Pamela A. McGrath, Cameron S. Avery and Stacy H. Winick individually, as my true
and lawful attorney, with full power to each of them to sign for me and in my
name, any and all registration statements and any and all amendments to the
registration statements filed under the Securities Act of 1933 or the Investment
Company Act of 1940 with the Securities and Exchange Commission for the purpose
of complying with such registration requirements in my capacity as a trustee or
officer of Liberty-Stein Roe Funds Investment Trust, Liberty-Stein Roe Funds
Income Trust, Liberty-Stein Roe Funds Institutional Trust, Liberty-Stein Roe
Funds Trust, Liberty-Stein Roe Funds Municipal Trust, Liberty-Stein Roe Funds
Advisor Trust, SR&F Base Trust, Stein Roe Variable Investment Trust, Liberty
Floating Rate Fund, Liberty-Stein Roe Institutional Floating Rate Income Fund,
and Stein Roe Floating Rate Limited Liability Company (together "Liberty-Stein
Roe Funds"). This Power of Attorney authorizes the above individuals to sign my
name and will remain in full force and effect until specifically rescinded by
me.
I specifically permit this Power of Attorney to be filed, as an exhibit to a
registration statement or amendment to a registration statement of any or all
Liberty-Stein Roe Funds with the Securities and Exchange Commission and I
request that this Power of Attorney then constitutes authority to sign
additional amendments and registration statements by virtue of its incorporation
by reference into the registration statements and amendments for the
Liberty-Stein Roe Funds.
In witness, I have signed this Power of Attorney on this 17th day of October,
2000.
/s/ JOSEPH R. PALOMBO
----------------------
Joseph R. Palombo
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940, the Registrant certifies that it meets all of
the requirements for effectiveness of this registration statement pursuant to
Rule 486 (b) under the Securities Act of 1933 and has duly caused this
Registration Statement to be signed on its behalf by the undersigned, thereunto
duly authorized, in Chicago, Illinois on the 13th day of December, 2000.
LIBERTY FLOATING
RATE FUND
By: STEPHEN E. GIBSON
Stephen E. Gibson, President
Pursuant to the requirements of the Securities Act of 1933, this
Registration Statement has been signed below by the following persons in the
capacities and on the dates indicated:
Signature Title Date
------------------------ --------------------- --------------
STEPHEN E. GIBSON President December 13, 2000
Stephen E. Gibson
Principal Executive Officer
JOSEPH R. PALOMBO Principal Accounting December 13, 2000
Joseph R. Palombo and Financial Officer
*JOHN A. BACON JR. Trustee December 13 , 2000
John A. Bacon Jr.
*WILLIAM W. BOYD Trustee December 13, 2000
William W. Boyd
*LINDSAY COOK Trustee December 13, 2000
Lindsay Cook
*DOUGLAS A. HACKER Trustee December 13, 2000
Douglas A. Hacker
*JANET LANGFORD KELLY Trustee December 13, 2000
Janet Langford Kelly
*CHARLES R. NELSON Trustee December 13, 2000
Charles R. Nelson
*THOMAS C. THEOBALD Trustee December 13, 2000
Thomas C. Theobald
*JOSEPH R. PALOMBO Trustee December 13, 2000
Joseph R. Palombo
*VINCENT P. PIETROPAOLO
Vincent P. Pietropaolo
Attorney in fact for the Trustees
<PAGE>
SIGNATURES
Pursuant to the requirements of the Investment Company Act of 1940, the
undersigned has duly caused this Registration Statement to be signed on its
behalf by the undersigned, thereunto duly authorized, in Chicago, Illinois on
the 13th day of December, 2000.
STEIN ROE FLOATING RATE LIMITED
LIABILITY COMPANY
By: STEPHEN E. GIBSON
Stephen E. Gibson
President
<PAGE>
Pursuant to the requirements of the Securities Act of 1933, this
Registration Statement has been signed below by the following persons in the
capacities and on the dates indicated:
Signature Title Date
------------------------ --------------------- --------------
STEPHEN E. GIBSON President December 13, 2000
Stephen E. Gibson
Principal Executive Officer
JOSEPH R. PALOMBO Principal Accounting December 13, 2000
Joseph R. Palombo and Financial Officer
*JOHN A. BACON JR. Manager December 13, 2000
John A. Bacon Jr.
*WILLIAM W. BOYD Manager December 13, 2000
William W. Boyd
*LINDSAY COOK Manager December 13, 2000
Lindsay Cook
*DOUGLAS A. HACKER Manager December 13, 2000
Douglas A. Hacker
*JANET LANGFORD KELLY Manager December 13, 2000
Janet Langford Kelly
*CHARLES R. NELSON Manager December 13, 2000
Charles R. Nelson
*THOMAS C. THEOBALD Manager December 13, 2000
Thomas C. Theobald
*JOSEPH R. PALOMBO Trustee December 13, 2000
Joseph R. Palombo
*VINCENT P. PIETROPAOLO
Vincent P. Pietropaolo
Attorney in fact for the Managers
Officer
<PAGE>
LIBERTY FLOATING RATE FUND
INDEX OF EXHIBITS FILED WITH THIS AMENDMENT
Exhibit
Number Exhibit
-------- --------------------------------------------------
(a) (3) Amendment to Agreement and Declaration of Trust
(b) (2) Amendment to By-Laws
(b) (3) Amendment to By-Laws
(l)(3) Opinion of Bell, Boyd & Lloyd
(n) Consent of PricewaterhouseCoopers LLP
