<PAGE>
COLONIAL GLOBAL
EQUITY FUND
SEMIANNUAL REPORT
APRIL 30, 1996
<PAGE>
COLONIAL GLOBAL EQUITY FUND HIGHLIGHTS
NOVEMBER 1, 1995 - APRIL 30, 1996
INVESTMENT OBJECTIVE: Colonial Global Equity Fund seeks long-term growth by
investing primarily in global equities.
THE FUND IS DESIGNED TO OFFER:
- Opportunity for long-term growth
- Diversification to help reduce risk
- Experienced professional management
PORTFOLIO MANAGEMENT COMMENTARY: "The United States continued to foster a
positive economic environment for equity investors, while Japan's economic
improvement and Europe's continued growth created favorable opportunities for
the Fund during the period."
COLONIAL GLOBAL EQUITY FUND PERFORMANCE
<TABLE>
<CAPTION>
CLASS A CLASS B
<S> <C> <C>
Inception dates 6/8/92 6/8/92
Six-month distributions declared per share $ 0.737 $ 0.689
Total returns, assuming
reinvestment of all distributions
and no sales charge or contingent
deferred sales charge (CDSC) -
6 months 13.30% 12.66%
Net asset value per share at 4/30/96 $13.29 $ 13.20
<CAPTION>
Top Five Holdings* Top Five Countries*
(as of 4/30/96) (as of 4/30/96)
<C> <C> <C> <C>
1. Fuji Photo Film Co. ............. 2.4% 1. United States ............ 38.2%
2. IBP, Inc. ....................... 2.1% 2. Japan .................... 11.9%
3. SCA Lakkirchen AG ............... 1.8% 3. United Kingdom ........... 6.8%
4. BASF AG ......................... 1.8% 4. France ................... 4.3%
5. Old Republic International Co. .. 1.7% 5. Netherlands .............. 4.2%
</TABLE>
* There can be no guarantee the Fund will continue to hold these securities or
invest in these countries in the future. The top five countries are based on
total investments.
2
<PAGE>
PRESIDENT'S MESSAGE
TO FUND SHAREHOLDERS
[PHOTO]
I am pleased to present your Fund's semiannual report for the period ended April
30, 1996. First, however, I would like to extend my thanks to President John A.
McNeice, Jr., who has retired after a career with Colonial that spanned 40
years. We look forward to his continued involvement on the executive committee
of the board of directors at our parent company, Liberty Financial Companies,
Inc.
In my new position, I am directing Colonial's focus on the delivery of superior
investment performance over the long term. To achieve this mission, we will
continue to seek the optimal combination of talented people and effective
investment disciplines.
The receipt of your semiannual report is a good time to reflect on market
conditions and the performance of your Fund during the past 6 months. Falling
interest rates and minimal inflation helped the economy grow at a comfortable
pace throughout 1995 and created a positive environment for financial
investments. The stock market received additional impetus from strong growth of
corporate profits.
While there may be some current market volatility, we expect moderate growth and
low inflation to continue and believe that reductions in interest rates may take
place later in the year. Earnings should continue to make progress but at a
slower pace than in 1995. Opportunities are not confined to the U.S., as we
anticipate growth in certain foreign markets. In the following pages you'll find
detailed information on your Fund's performance as well as an in-depth
discussion with the portfolio manager.
With over 12 years of service at Colonial and more than 25 years in the
industry, I am enthusiastic about - and dedicated to achieving - Colonial's
mission of providing you with competitive investment returns. In my new role, I
look forward to communicating with you about your Colonial investment. We
appreciate the opportunity to help you meet your investment goals.
Respectfully,
/s/ Harold W. Cogger
Harold W. Cogger
President
June 14, 1996
Because market conditions change frequently, there can be no assurance that the
trends described here will continue, come to pass, or affect Fund performance.
3
<PAGE>
PORTFOLIO MANAGEMENT REPORT
DANIEL RIE is co-manager of Colonial Global Equity Fund and senior vice
president of Colonial Management Associates, Inc. He also directs Colonial's
equity investment group. The other Fund co-managers are GITA RAO and SUSAN
CORDES, vice presidents of Colonial Management Associates, Inc. and PETER WILEY,
assistant vice president of Colonial Management Associates, Inc.
Q. PLEASE DESCRIBE THE GLOBAL ECONOMIC ENVIRONMENT DURING THE PERIOD.
D.R. In the U.S., low interest rates, low inflation and slow but steady economic
growth created a positive environment for stocks. In Japan, economic conditions
finally began to indicate improvement, and Europe's economy continued to grow as
interest rates declined. Asia's performance remained robust, with GDP growth in
selected countries in the 5% range during the first four months of 1996.
Q. HOW DID THESE MARKET CONDITIONS AFFECT THE FUND?
S.C. The Fund had solid performance, which was sparked by strong returns from
U.S. and Japanese holdings, the two largest country weightings during the
period. U.S. stocks accounted for 35.9% of assets as of April 30, 1996, and
Japanese holdings comprised 10.7% of the portfolio at the end of the period. The
financial services, consumer cyclical and capital goods sectors all performed
well. These sectors accounted for more than 40% of the Fund's holdings. Specific
stocks that contributed significantly to performance were Fuji Photo Film Co.,
the largest holding, Nike, and CrossAir AG, a Swiss airline.
Q. HOW DID THE FUND PERFORM COMPARED TO THE INDEX USED TO EVALUATE ITS
PERFORMANCE?
P.W. The Fund outperformed the Morgan Stanley Capital International World GDP
Index during the reporting period. The Fund's six-month return was 13.30% for
Class A shares, compared to 12.38% for the Index. The Fund's relative
underweighting in Japan and overweighting in Europe contributed to its
performance, as did its exposure to emerging markets which are not included in
the Index.
Q. HOW DO YOU CONTROL THE RISKS ASSOCIATED WITH INVESTING IN INTERNATIONAL
STOCKS?
G.R. We use several valuation measures in our stock selection process, including
price to book and price to earnings. Our broad geographic and industry
diversification also limits risk. At the end of the period, the Fund owned
stocks representing 12 sectors in more than 20 countries. This diversification
allows the Fund to benefit when markets rise, but minimizes exposure to any
single stock, country or industry.
4
<PAGE>
Q. WHAT IS YOUR MARKET OUTLOOK?
D.R. Looking ahead, we think the U.S. economy will continue to accelerate at a
steady but slower pace. We believe foreign economic growth will continue, led by
the emerging economies of the Pacific Rim, the expected Japanese recovery and
the pick up in the European economy. We anticipate that these factors will
create a variety of favorable opportunities for global equity investments.
COLONIAL GLOBAL EQUITY FUND'S INVESTMENT PERFORMANCE VS.
THE MORGAN STANLEY CAPITAL INTERNATIONAL WORLD (GDP) INDEX
Change in Value of $10,000 from 6/92 - 4/96
CLASS A SHARES
Based on NAV and MOP
<TABLE>
<CAPTION>
- ----------------------------------------------------------------
CGET a shares nav mop msci
- ----------------------------------------------------------------
<S> <C> <C> <C>
6/92 10,000 9,425 10,000
10,081 9,501 9,888
9,869 9,301 10,095
9/92 9,747 9,187 9,845
9,434 8,892 9,596
9,505 8,959 9,700
12/92 9,690 9,133 9,725
9,946 9,374 9,802
10,069 9,490 10,060
3/93 10,540 9,934 10,556
10,755 10,136 11,097
11,010 10,377 11,286
6/93 10,734 10,116 11,147
10,961 10,331 11,335
11,746 11,071 11,988
9/93 11,756 11,080 11,751
12,149 11,450 12,040
11,973 11,285 11,359
12/93 13,101 12,348 11,913
13,685 12,898 12,649
13,258 12,495 12,455
3/94 12,705 11,974 12,137
12,861 12,122 12,572
12,747 12,014 12,429
6/94 12,567 11,845 12,274
13,009 12,261 12,593
13,419 12,647 12,901
9/94 13,124 12,370 12,514
13,335 12,568 12,824
12,767 12,033 12,276
12/94 12,889 12,148 12,384
12,510 11,791 12,273
12,924 12,181 12,443
3/95 13,211 12,452 12,898
13,614 12,831 13,379
13,878 13,080 13,489
6/95 14,095 13,285 13,512
15,046 14,181 14,221
14,768 13,918 13,811
9/95 14,768 13,918 14,097
10/95 14,431 13,602 13,808
11/95 14,663 13,820 14,191
12/95 15,010 14,147 14,633
1/96 15,502 14,611 14,925
2/96 15,650 14,750 14,983
3/96 15,883 14,970 15,147
4/96 16,351 15,411 15,518
</TABLE>
NAV $16,351
MSCI $15,518
MOP $15,411
$10,000
6/92 4/96
CLASS B SHARES
Based on NAV and Maximum CDSC
<TABLE>
<CAPTION>
- ----------------------------------------------------------------
CGEF NAV MOP MSCI
- ----------------------------------------------------------------
<S> <C> <C> <C>
6/92 10,000 10,000 10,000
10,081 10,081 9,888
9,869 9,869 10,095
9/92 9,727 9,727 9,845
9,414 9,414 9,596
9,484 9,484 9,700
12/92 9,646 9,646 9,725
9,891 9,891 9,802
10,013 10,013 10,060
3/93 10,472 10,472 10,555
10,676 10,676 11,097
10,921 10,921 11,286
6/93 10,646 10,646 11,147
10,872 10,872 11,335
11,641 11,641 11,988
9/93 11,641 11,641 11,751
12,021 12,021 12,040
11,847 11,847 11,359
12/93 12,956 12,956 11,913
13,514 13,514 12,649
13,080 13,080 12,455
3/94 12,523 12,523 12,137
12,678 12,678 12,572
12,544 12,544 12,429
6/94 12,363 12,363 12,274
12,788 12,788 12,593
13,192 13,192 12,901
9/94 12,892 12,892 12,514
13,089 13,089 12,824
12,529 12,529 12,276
12/94 12,632 12,632 12,384
12,259 12,259 12,273
12,666 12,666 12,443
3/95 12,937 12,937 12,898
13,321 13,321 13,379
13,558 13,588 13,489
6/95 13,766 13,766 13,512
14,685 14,685 14,221
14,401 14,401 13,811
9/95 14,401 14,401 14,097
10/95 14,061 14,061 13,808
11/95 14,276 14,276 14,191
12/95 14,605 14,605 14,633
1/96 15,073 15,073 14,925
2/96 15,217 15,217 14,983
3/96 15,421 15,421 15,147
4/96 15,841 15,541 15,518
</TABLE>
NAV $15,841
w/CDSC $15,541
MSCI $15,518
$10,000
6/92 4/96
The Morgan Stanley Capital International World (GDP) Index is an unmanaged index
that tracks the performance of global stocks.
AVERAGE ANNUAL TOTAL RETURN
As of 3/31/96 (Most Recent Quarter End)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
CLASS A SHARES CLASS B SHARES
INCEPTION 6/8/92 6/8/92
NAV MOP NAV w/CDSC
- -------------------------------------------------------------------------------------
<C> <C> <C> <C> <C>
1 YEAR 20.23% 13.31% 19.20% 14.20%
- -------------------------------------------------------------------------------------
SINCE INCEPTION 12.59% 10.86% 11.69% 11.11%
- -------------------------------------------------------------------------------------
</TABLE>
Past performance cannot predict future results. Return and value of an
investment will vary, resulting in a gain or loss on sale. All results shown
assume reinvestment of distributions. Net asset value (NAV) return does not
include sales charges or a contingent deferred sales charge (CDSC). Maximum
offering price (MOP) return includes the maximum sales charge of 5.75%. The CDSC
returns reflect charges of: one year, 5%; since inception, 3%.
Performance for different share classes will vary based on differences in sales
charges and fees associated with each class.
5
<PAGE>
INVESTMENT PORTFOLIO
APRIL 30, 1996 (UNAUDITED, IN THOUSANDS)
<TABLE>
<CAPTION>
COMMON STOCKS - 90.4% COUNTRY SHARES VALUE
- -----------------------------------------------------------------------------------
<S> <C> <C> <C>
AGRICULTURE, FORESTRY & FISHING - 0.3%
AGRICULTURE - CROPS - 0.2%
Perlis Plantations Berhad Ma 35 $ 147
-----
FISHING, HUNTING & TRAPPING - 0.1%
Pescanova SA Sp 7 92
-----
- -----------------------------------------------------------------------------------
CONSTRUCTION - 2.6%
BUILDING CONSTRUCTION - 1.4%
Hollandsche Beton Groep NV Ne 1 240
Koninklijke Volker Stevin NV Ne 9 612
Pulte Corp. 7 180
U.S. Home Corp. (a) 5 122
-----
1,154
-----
HEAVY CONSTRUCTION-NON BUILDING CONSTRUCTION - 0.9%
Dyckerhoff und Widmann AG G 1 117
Granite Construction, Inc. 24 474
Koninklijke Boskalis Westminster NV Ne 4 53
Strabag Oesterreich AG Aus 2 123
-----
767
-----
SPECIAL TRADE CONTRACTORS - 0.3%
Kydenko Company Ja 16 232
-----
- -----------------------------------------------------------------------------------
FINANCE, INSURANCE & REAL ESTATE - 31.8%
DEPOSITORY INSTITUTIONS - 11.1%
Banco Popolare di Milano (BPM) It 147 673
Bank of Montreal Ca 7 178
Bank of Nova Scotia Ca 5 113
BankAmerica Corp. 3 220
Community First Bankshares, Inc. 6 131
Corestates Financial Corp. 10 397
Corporacion Bancaria de Espana SA Sp 19 753
Deposit Guaranty Corp. 17 816
First Empire State Corp. 1 119
First Security Corp. 16 409
Foreningsbanken AB Sw 498 1,340
Haven Bancorp, Inc. 20 468
Jyske Bank De 12 723
N.S. Bancorp, Inc. 4 165
National Westminster Bank PLC UK 28 254
Peoples Heritage Financial Group, Inc. 25 520
Rochester Community Savings Bank 22 512
Westpac Banking Corp. Au 264 1,285
-----
9,076
-----
</TABLE>
6
<PAGE>
Investment Portfolio/April 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
FINANCIAL SERVICES - 0.5%
Sparekassen Bikuben A/S De 12 $ 382
HOLDING & OTHER INVESTMENT COMPANIES - 6.6%
Chile Fund, Inc. 24 576
Clemente Global Growth Fund, Inc. (b) 40 350
Emerging Germany Fund, Inc. G 24 180
Emerging Tiger Fund, Inc. (a)(b) 18 271
First Australia Fund, Inc. Au 58 553
First Phillipine Fund, Inc. Ph 41 658
France Growth Fund, Inc. Fr 14 148
Irish Investment Fund, Inc. Ir 46 597
Pakistan Investment Fund (a) Pa 53 351
Templeton Dragon Fund, Inc. (a)(b) 63 849
Thai Fund Th 8 206
The Asia Tiger Fund, Inc. (b) 21 246
The India Fund, Inc. (a) Id 35 389
-----
5,374
-----
INSURANCE CARRIERS - 8.3%
Allied Group, Inc. (a) 4 136
American Travellers Corp. (a) 5 102
Fremont General Corp. 19 479
Horace Mann Educators Corp. 22 736
International Nederlanden Groep Ne 13 1,004
Jefferson-Pilot Corp. 14 717
Maxicare Health Plan, Inc. (a) 23 472
Mercury General Corp. 6 255
Old Republic International Corp. 43 1,412
Penncorp Financial Group, Inc. 17 515
Schweizerische Lebensversicherungs und
Rentenanstalt Sz 2 773
US Facilities Corp. 10 187
-----
6,788
-----
NONDEPOSITORY CREDIT INSTITUTIONS - 1.5%
Orient Corp. Ja 195 1,226
-----
REAL ESTATE - 2.1%
Cheung Kong (Holdings) Ltd. HK 142 1,014
New World Development Co., Ltd. HK 154 691
-----
1,705
-----
SECURITY BROKERS & DEALERS - 1.7%
Inter-Regional Financial Group, Inc. 4 89
Lehman Brothers Holdings, Inc. 9 238
Morgan Stanley Group, Inc. 21 1,030
-----
1,357
-----
</TABLE>
7
<PAGE>
Investment Portfolio/April 30, 1996
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------
COMMON STOCKS - CONT. COUNTRY SHARES VALUE
- ----------------------------------------------------------------------------------
<S> <C> <C> <C>
MANUFACTURING - 33.0%
CHEMICALS & ALLIED PRODUCTS - 4.0%
BASF AG G 5 $1,443
Biochem Pharma, Inc. (a) Ca 19 879
DSM NV Ne 7 672
Galencia Holding AG Sz 1 298
-----
3,292
-----
ELECTRONIC & ELECTRICAL EQUIPMENT - 3.7%
Evans & Sutherland Computer Corp. (a) 6 170
Harman International Industries, Inc. 14 643
Komag, Inc. (a) 29 955
Matsushita Electric Industrial Co. Ja 41 722
Philips Electronics Ne 15 537
-----
3,027
-----
FABRICATED METAL - 2.1%
Compagnie Generale d'Industrie
et de Participations Fr 2 499
GFI Industries SA Fr 4 624
Oerlikon-Buehrle Holding AG (a) Sz 1 98
Oriental Holdings Berhad Ma 43 262
Van Der Horst Ltd. Si 45 222
-----
1,705
-----
FOOD & KINDRED PRODUCTS - 4.8%
Associated British Foods PLC UK 179 1,071
IBP, Inc. 63 1,680
Marudai Food Co., Ltd. Ja 26 207
Oesterreichische Brau-Beteiligungs Aus 2 99
Tate & Lyle PLC UK 113 820
-----
3,877
-----
MACHINERY & COMPUTER EQUIPMENT - 3.3%
Hitachi Ltd. Ja 122 1,313
Kaydon Corp. 6 254
Seagate Technology, Inc. (a) 16 934
WBL Corp. Ltd. Si 80 188
-----
2,689
-----
MEASURING & ANALYZING INSTRUMENTS - 4.2%
Fuji Photo Film Co. Ltd. Ja 64 1,987
Medtronic, Inc. 15 775
Sybron International Corp.-Wisconsin (a) 27 687
-----
3,449
-----
PAPER PRODUCTS - 2.1%
Emin Leydier Fr 2 148
SCA Laakirchen AG Aus 4 1,486
Tembec Inc Class A (a) Ca 16 114
-----
1,748
-----
PETROLEUM REFINING - 1.0%
Pennzoil Co. 18 779
-----
</TABLE>
8
<PAGE>
<TABLE>
<CAPTION>
Investment Portfolio/April 30, 1996
- ------------------------------------------------------------------------------------
<S> <C> <C> <C>
PRIMARY METAL - 3.3%
Alfa SA De CV Mx 70 $1,026
Interprovincial Steel Ca 14 344
Texas Industries, Inc. 21 1,350
-----
2,720
-----
RUBBER & PLASTIC - 0.8%
Nike, Inc., Class B 8 674
-----
STONE, CLAY, GLASS & CONCRETE - 1.2%
Global Industrial Technologies, Inc. (a) 48 884
Radex Heraklith Industriebeteilingungs AG Aus 4 125
-----
1,009
-----
TEXTILE MILL PRODUCTS - 1.1%
Japan Wool Textile Co. Ja 80 876
-----
TOBACCO PRODUCTS - 0.5%
B.A.T. Industries PLC UK 51 385
-----
TRANSPORTATION EQUIPMENT - 0.9%
Equipements et Composants pour
l'Industrie Automobile Fr 2 324
Montupet Fr 2 271
Schindler Holding AG Sz (c) 164
-----
759
-----
- -----------------------------------------------------------------------------------
MINING & ENERGY - 3.4%
CRUDE PETROLEUM & NATURAL GAS - 1.4%
Societe Nationale Elf Aquitaine Fr 15 1,135
-----
METAL MINING - 0.9%
Trelleborg AB-B Shs Sw 52 694
-----
NONMETALLIC, EXCEPT FUELS - 0.2%
Potash Corp. of Saskatchewan, Inc. Ca 3 176
-----
OIL & GAS EXTRACTION - 0.4%
Santos Ltd. Au 85 304
-----
OIL & GAS FIELD SERVICES - 0.5%
Petroleum Geo-Services A/S (a) No 14 459
-----
- -----------------------------------------------------------------------------------
RETAIL TRADE - 2.6%
APPAREL & ACCESSORY STORES - 1.4%
Aoyama Trading Ja 29 912
Suzutan (a) Ja 39 269
-----
1,181
-----
</TABLE>
9
<PAGE>
Investment Portfolio/April 30, 1996
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------
COMMON STOCKS - CONT. COUNTRY SHARES VALUE
- -----------------------------------------------------------------------------------
<S> <C> <C> <C>
RETAIL TRADE - CONT.
FOOD STORES - 0.1%
Weis Markets, Inc. 3 $ 101
-----
GENERAL MERCHANDISE STORES - 0.4%
Jardine Strategic Holdings Ltd. Si 90 294
-----
MISCELLANEOUS RETAIL - 0.7%
Imasco Ltd. Ca 29 558
-----
- -----------------------------------------------------------------------------------
SERVICES - 3.9%
BUSINESS SERVICES - 2.9%
Cadence Design Systems, Inc. (a) 8 439
Computer Horizons Corp. (a) 15 750
Oracle Systems Corp. (a) 26 891
Publicitas Holding S.A. Sz (c) 283
-----
2,363
-----
HEALTH SERVICES - 1.0%
Healthsouth Rehabilitation Corp. (a) 21 787
-----
- -----------------------------------------------------------------------------------
TRANSPORTATION, COMMUNICATION, ELECTRIC,
GAS & SANITARY SERVICES - 11.0%
AIR TRANSPORTATION - 2.6%
Air Canada Corp. (a) Ca 22 85
Airborne Freight Corp. 9 224
British Airways PLC UK 17 130
Crossair AG Sz (c) 252
Det Danske Luftfarts (a) De 7 612
Lufthansa AG G 4 626
Malaysian Airline System Berhad Ma 55 182
-----
2,111
-----
COMMUNICATIONS - 1.0%
PT Voksel Electric In 90 54
Southern New England
Telecommunications Corp. 10 423
Tokyo Broadcasting System Ja 21 350
-----
827
-----
ELECTRIC, GAS & SANITARY SERVICES - 0.6%
Hyder PLC UK 28 311
Westcoast Energy, Inc. Ca 13 194
-----
505
-----
ELECTRIC SERVICES - 3.9%
Allegheny Power System, Inc. 27 784
Hong Kong Electric Holdings Ltd. HK 94 298
Pinnacle West Capital Corp. 17 447
</TABLE>
10
<PAGE>
<TABLE>
<CAPTION>
Investment Portfolio/April 30, 1996
- -----------------------------------------------------------------------------------
<S> <C> <C> <C>
Unicom Corp. 44 $ 1,218
Union Electrica Fenosa SA Sp 76 453
-------
3,200
-------
GAS SERVICES - 0.2%
BC Gas, Inc. Ca 10 119
-------
LOCAL & SUBURBAN TRANSIT - 0.2%
Linjebuss A Shares Sw 15 137
-------
SANITARY SERVICES - 2.5%
Severn Trent Water PLC UK 40 357
Southern Water PLC UK 38 440
United Utilities PLC UK 40 356
Yorkshire Water PLC UK 89 899
-------
2,052
-------
- -----------------------------------------------------------------------------------
WHOLESALE TRADE - 1.8%
DURABLE GOODS - 1.8%
Fujitsu Business Systems Ja 25 652
Wyle Electronics Co. 19 796
-------
1,448
-------
Total Common Stocks (cost of $63,932) (d) 73,740
-------
SHORT-TERM OBLIGATIONS - 9.3% PAR
- -----------------------------------------------------------------------------------
Repurchase agreement with Bankers Trust Securities
Corp., dated 4/30/96, due 05/01/96 at 5.320%,
collateralized by U.S. Treasury notes with various
maturities to 2001, market value $7,750
(repurchase proceeds $7,584) $ 7,583 7,583
-------
OTHER ASSETS & LIABILITIES, NET - 0.3% 244
- -----------------------------------------------------------------------------------
NET ASSETS - 100.0% $81,567
-------
</TABLE>
11
<PAGE>
<TABLE>
<CAPTION>
Investment Portfolio/April 30, 1996
- -----------------------------------------------------------------------------------
===================================================================================
NOTES TO INVESTMENT PORTFOLIO:
(a) Non-income producing.
(b) This security is subject to the risks of the various countries in which the
issuer is investing. (See notes to Financial Statements: Note 4 - Other.)
(c) Rounds to less than one.
(d) Cost for federal income tax purposes is the same.
Summary of Securities by Country Country Value % of Total
- -----------------------------------------------------------------------------------
<S> <C> <C> <C>
United States $ 28,122 38.2
Japan Ja 8,746 11.9
United Kingdom UK 5,023 6.8
France Fr 3,149 4.3
Netherlands Ne 3,118 4.2
Canada Ca 2,760 3.7
Germany G 2,366 3.2
Sweden Sw 2,171 2.9
Australia Au 2,142 2.9
Hong Kong HK 2,003 2.7
Switzerland Sz 1,868 2.5
Austria Aus 1,833 2.5
Denmark De 1,717 2.3
Multinational (b) 1,716 2.3
Spain Sp 1,298 1.8
Mexico Mx 1,026 1.4
Singapore Si 704 1.0
Italy It 673 0.9
Philippines Ph 658 0.9
Ireland Ir 597 0.8
Malaysia Ma 591 0.8
Norway No 459 0.6
India Id 389 0.5
Pakistan Pa 351 0.5
Thailand Th 206 0.3
Indonesia In 54 0.1
-------- --------
$ 73,740 100.0
-------- --------
</TABLE>
Certain securities are listed by country of underlying exposure but may trade
predominantly on other exchanges.
See notes to financial statements.
12
<PAGE>
STATEMENT OF ASSETS & LIABILITIES
APRIL 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
(in thousands except for per share amounts and footnotes)
<S> <C> <C>
ASSETS
Investments at value (cost $63,932) $ 73,740
Short-term obligations 7,583
-----------
81,323
Cash held in foreign banks (cost $1,040) $ 1,036
Receivable for:
Dividends 173
Foreign tax reclaims 68
Fund shares sold 68
Interest 1
Deferred organization expenses 10
Other 14 1,370
------------ -----------
Total Assets 82,693
LIABILITIES
Payable for:
Investments bought 1,036
Fund shares repurchased 70
Accrued:
Deferred Trustees fees 1
Other 19
------------
Total Liabilities 1,126
-----------
NET ASSETS $ 81,567
-----------
Net asset value & redemption price per share -
Class A ($14,781/1,112) $ 13.29
-----------
Maximum offering price per share - Class A
($13.29/0.9425) $ 14.10(a)
-----------
Net asset value & offering price per share -
Class B ($66,786/5,058) $ 13.20(b)
-----------
COMPOSITION OF NET ASSETS
Capital paid in $ 65,621
Overdistributed net investment income (320)
Accumulated net realized gain 6,452
Net unrealized appreciation on:
Investments 9,808
Foreign currency transactions 6
-----------
$ 81,567
-----------
</TABLE>
(a) On sales of $50,000 or more the offering price is reduced.
(b) Redemption price per share is equal to net asset value less any applicable
contingent deferred sales charge.
See notes to financial statements.
13
<PAGE>
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED APRIL 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
(in thousands)
<S> <C> <C>
INVESTMENT INCOME
Dividends $ 711
Interest 174
-----------
Total investment income (net of nonrebatable
foreign taxes withheld at source which
amounted to $51) 885
EXPENSES
Management fee $ 282
Service fee 94
Distribution fee - Class B 233
Transfer agent 119
Bookkeeping fee 18
Trustees fee 8
Custodian fee 26
Audit fee 18
Legal fee 4
Registration fee 16
Reports to shareholders 6
Amortization of deferred
organization expenses 4
Other 11 839
------------ -----------
Net Investment Income 46
-----------
NET REALIZED & UNREALIZED GAIN (LOSS) ON
PORTFOLIO POSITIONS
Net realized gain (loss) on:
Investments 6,451
Foreign currency transactions (54)
------------
Net Realized Gain 6,397
Net unrealized appreciation (depreciation)
during the period on:
Investments 2,629
Foreign currency transactions (2)
------------
Net Unrealized Appreciation 2,627
-----------
Net Gain 9,024
-----------
Net Increase in Net Assets from Operations $ 9,070
-----------
</TABLE>
See notes to financial statements.
14
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
(Unaudited)
Six Months Year Ended
(in thousands) Ended April 30 October 31
-------------- ----------
INCREASE (DECREASE) IN NET ASSETS 1996 1995
<S> <C> <C>
Operations:
Net investment income $ 46 $ 545
Net realized gain 6,397 3,832
Net unrealized appreciation 2,627 637
-------- --------
Net Increase from Operations 9,070 5,014
Distributions:
From net investment income - Class A (68) (175)
From net realized gains - Class A (618) (809)
From net investment income - Class B (118) (533)
From net realized gains - Class B (3,141) (4,674)
-------- --------
5,125 (1,177)
-------- --------
Fund Share Transactions:
Receipts for shares sold - Class A 2,967 3,736
Value of distributions reinvested - Class A 644 915
Cost of shares repurchased - Class A (1,262) (3,545)
-------- --------
2,349 1,106
-------- --------
Receipts for shares sold - Class B 7,098 9,028
Value of distributions reinvested - Class B 3,033 4,883
Cost of shares repurchased - Class B (6,670) (16,872)
-------- --------
3,461 (2,961)
-------- --------
Net Increase (Decrease) from
Fund Share Transactions 5,810 (1,855)
-------- --------
Total Increase (Decrease) 10,935 (3,032)
NET ASSETS
Beginning of period 70,632 73,664
-------- --------
End of period (net of overdistributed
net investment income of $320 and
$129, respectively) $ 81,567 $ 70,632
-------- --------
NUMBER OF FUND SHARES
Sold - Class A 235 310
Issued for distributions reinvested - Class A 53 82
Repurchased - Class A (100) (297)
-------- --------
188 95
-------- --------
Sold - Class B 564 754
Issued for distributions reinvested - Class B 253 440
Repurchased - Class B (532) (1,419)
-------- --------
285 (225)
-------- --------
</TABLE>
See notes to financial statements.
15
<PAGE>
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1996 (UNAUDITED)
NOTE 1. INTERIM FINANCIAL STATEMENTS
In the opinion of management of Colonial Global Equity Fund (the Fund), a
series of Colonial Trust III, the accompanying financial statements contain
all normal and recurring adjustments necessary for the fair representation of
the financial position of the Fund at April 30, 1996, and the results of its
operations, the changes in its net assets and the financial highlights for the
six months then ended.
NOTE 2. ACCOUNTING POLICIES
ORGANIZATION: The Fund is a diversified portfolio of a Massachusetts business
trust registered under the Investment Company Act of 1940, as amended, as an
open-end, management investment company. The Fund's objective is to seek
long-term growth. The Fund may issue an unlimited number of shares. The Fund
offers Class A shares sold with a front-end sales charge and Class B shares
which are subject to an annual distribution fee and a contingent deferred
sales charge. Class B shares will convert to Class A shares when they have
been outstanding approximately eight years.
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 reporting period.
Actual results could differ from those estimates. The following is a summary
of significant accounting policies followed by the Fund in the preparation of
its financial statements.
SECURITY VALUATION AND TRANSACTIONS: Equity securities are valued at the last
sale price or, in the case of unlisted or listed securities for which there
were no sales during the day, at current quoted bid prices.
Forward currency contracts are valued based on the weighted value of the
exchange traded contracts with similar durations.
Short-term obligations with a maturity of 60 days or less are valued at
amortized cost.
The value of all assets and liabilities quoted in foreign currencies are
translated into U.S. dollars at that day's exchange rates.
Portfolio positions which cannot be valued as set forth above are valued at
fair value under procedures approved by the Trustees.
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.
16
<PAGE>
Notes to Financial Statements/April 30, 1996
DETERMINATION OF CLASS NET ASSET VALUES AND FINANCIAL HIGHLIGHTS: All income,
expenses (other than the Class B distribution fee), 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.
The per share data was calculated using the average shares outstanding during
the period. In addition, Class B net investment income per share reflects the
distribution fee applicable to Class B shares only.
Class B ratios are calculated by adjusting the expense and net investment
income ratios for the Fund for the entire period by the distribution fee
applicable to Class B only.
FEDERAL INCOME TAXES: Consistent with the Fund's policy to qualify as a
regulated investment company and to distribute all of its taxable income, no
federal income tax has been accrued.
INTEREST INCOME, DEBT DISCOUNT AND PREMIUM: Interest income is recorded on the
accrual basis. Original issue discount is accreted to interest income over the
life of a security with a corresponding increase in the cost basis; premium
and market discount are not amortized or accreted.
DEFERRED ORGANIZATION EXPENSES: The Fund incurred expenses of $43,895 in
connection with its organization, initial registration with the Securities and
Exchange Commission and with various states, and the initial public offering
of its shares. These expenses were deferred and are being amortized on a
straight-line basis over five years.
DISTRIBUTIONS TO SHAREHOLDERS: Distributions to shareholders are
recorded on the ex-date.
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.
FOREIGN CURRENCY TRANSACTIONS: Net realized and unrealized gains (losses) on
foreign currency transactions includes the fluctuation in exchange rates on
gains (losses) between trade and settlement dates on securities transactions,
gains (losses) arising from the disposition of foreign currency and currency
gains (losses) between the accrual and payment dates on dividends and interest
income and foreign withholding taxes.
The Fund does not distinguish that portion of gains and losses on investments
which is due to changes in foreign exchange rates from that which is due to
changes in market prices of the investments. Such fluctuations are included
with the net realized and unrealized gains (losses) on investments.
17
<PAGE>
Notes to Financial Statements/April 30, 1996
NOTE 2. ACCOUNTING POLICIES - CONT.
FORWARD CURRENCY CONTRACTS: The Fund may enter into forward currency contracts
to purchase or sell foreign currencies at predetermined exchange rates in
connection with the settlement of purchases and sales of securities. The Fund
may also enter into forward currency contracts to hedge certain other foreign
currency denominated assets. The contracts are used to minimize the exposure
to foreign exchange rate fluctuations during the period between trade and
settlement date of the contracts. All contracts are marked-to-market daily,
resulting in unrealized gains or losses which become realized at the time the
forward currency contracts are closed or mature. Realized and unrealized gains
(losses) arising from such transactions are included in net realized and
unrealized gains (losses) on foreign currency transactions. Forward currency
contracts do not eliminate fluctuations in the prices of the Fund's portfolio
securities. While the maximum potential loss from such contracts is the
aggregate face value in U.S. dollars at the time the contract was opened,
exposure is typically limited to the change in value of the contract (in U.S.
dollars) over the period it remains open. Risks may also arise if
counterparties fail to perform their obligations under the contracts.
OTHER: Corporate actions are recorded on ex-date (except for certain foreign
securities which are recorded as soon after ex-date as the Fund becomes aware
of such), net of nonrebatable tax withholdings. Where a high level of
uncertainty as to collection exists, income on securities is recorded net of
all tax withholdings with any rebates recorded when received. The Fund may be
subject to foreign taxes on income, gains on investments, or foreign currency
repatriation. The Fund accrues foreign taxes as applicable based upon its
current interpretation of the tax rules and regulations that exist in the
markets in which it invests.
The Fund's custodian takes possession through the federal book-entry system of
securities collateralizing repurchase agreements. Collateral is
marked-to-market daily to ensure that the market value of the underlying
assets remains sufficient to protect the Fund. The Fund may experience costs
and delays in liquidating the collateral if the issuer defaults or enters
bankruptcy.
NOTE 3. FEES AND COMPENSATION PAID TO AFFILIATES
MANAGEMENT FEE: Colonial Management Associates, Inc. (the Adviser)
is the investment Adviser of the Fund and furnishes accounting and other
services and office facilities for a monthly fee equal to 0.75% annually of
the Fund's average net assets.
BOOKKEEPING FEE: The Adviser provides bookkeeping and pricing services for
$27,000 per year plus 0.035% of the Fund's average net assets over $50
million.
18
<PAGE>
Notes to Financial Statements/April 30, 1996
TRANSFER AGENT: Colonial Investors Service Center, Inc. (the Transfer Agent),
an affiliate of the Adviser, provides shareholder services and receives a
monthly fee equal to 0.25% annually of the Fund's average net assets and
receives a reimbursement for certain out of pocket expenses.
UNDERWRITING DISCOUNTS, SERVICE AND DISTRIBUTION FEES: Colonial Investment
Services, Inc. (the Distributor), an affiliate of the Adviser, is the Fund's
principal underwriter. For the six months ended April 30, 1996, the Fund has
been advised that the Distributor retained net underwriting discounts of
$6,925 on sales of the Fund's Class A shares and received contingent deferred
sales charges (CDSC) of $51,120 on Class B share redemptions.
The Fund has adopted a 12b-1 plan which requires it to pay the Distributor a
service fee equal to 0.25% annually of the Fund's net assets as of the 20th of
each month. The plan also requires the payment of a distribution fee to the
Distributor equal to 0.75% of the average net assets attributable to Class B
shares.
The CDSC 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 Adviser has agreed, until further notice, to bear certain
Fund expenses to the extent that total expenses (exclusive of service and
distribution fees, brokerage commissions, interest, taxes and extraordinary
expenses, if any) exceed 1.40% annually of the Fund's average net assets.
For the six months ended April 30, 1996, the Fund's operating expenses did not
exceed the 1.40% expense limit.
OTHER: The Fund pays no compensation to its officers, all of whom are
employees of the Adviser.
The Fund's Trustees may participate in a deferred compensation plan which may
be terminated at any time. Obligations of the plan will be paid solely out of
the Fund's assets.
NOTE 4. PORTFOLIO INFORMATION
INVESTMENT ACTIVITY: During the six months ended April 30, 1996, purchases and
sales of investments, other than short-term obligations, were $41,586,593 and
$40,611,124, respectively.
Unrealized appreciation (depreciation) at April 30, 1996, based on cost of
investments for both financial statement and federal income tax purposes was:
Gross unrealized appreciation $ 11,790,573
Gross unrealized depreciation (1,982,368)
----------------
Net unrealized appreciation $ 9,808,205
----------------
19
<PAGE>
Notes to Financial Statements/April 30, 1996
NOTE 4. PORTFOLIO INFORMATION - CONT.
OTHER: There are certain additional risks involved when investing in foreign
securities that are not inherent with investments in domestic securities.
These risks may involve foreign currency exchange rate fluctuations, adverse
political and economic developments and the possible prevention of foreign
currency exchange or the imposition of other foreign governmental laws or
restrictions.
The Fund may focus its investments in certain industries, subjecting it to
greater risk than a fund that is more diversified.
NOTE 5. LINE OF CREDIT
The Fund may borrow up to 10% of its net assets under a line of credit for
temporary or emergency purposes. Any borrowings bear interest at one of the
following options determined at the inception of the loan: (1) federal funds
rate plus 1/2 of 1%, (2) the lending bank's base rate or (3) IBOR offshore
loan rate plus 1/2 of 1%. There were no borrowings under the line of credit
during the six months ended April 30, 1996.
20
<PAGE>
FINANCIAL HIGHLIGHTS (b)
Selected data for a share of each class outstanding throughout
each period are as follows:
<TABLE>
<CAPTION>
(Unaudited)
Six months ended
April 30 Year ended October 31
-------------------------------------- -------------------------------
1996 1995
Class A Class B Class A Class B
------- ------- ------- -------
<S> <C> <C> <C> <C>
Net asset value -
Beginning of period $ 12.450 $ 12.390 $ 12.690 $ 12.630
----------- ----------- ----------- -----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (a) 0.047 0.000 0.167 0.076
Net realized and unrealized
gain (loss) 1.530 1.499 0.735 0.735
----------- ----------- ----------- -----------
Total from Investment
Operations 1.577 1.499 0.902 0.811
----------- ----------- ----------- -----------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.073) (0.025) (0.198) (0.107)
From net realized gains (0.664) (0.664) (0.944) (0.944)
----------- ----------- ----------- -----------
Total Distributions Declared
to Shareholders (0.737) (0.689) (1.142) (1.051)
----------- ----------- ----------- -----------
Net asset value -
End of period $ 13.290 $ 13.200 $ 12.450 $ 12.390
Total return (c)(d) 13.30%(e) 12.66%(e) 8.23% 7.43%
----------- ----------- ----------- -----------
RATIOS TO AVERAGE NET ASSETS
Expenses 1.61%(f)(g) 2.36%(f)(g) 1.36%(f) 2.11%(f)
Fees waived by the Adviser -- -- 0.26%(f) 0.26%(f)
Net investment income 0.74%(f)(g) (0.01)%(f)(g) 1.40%(f) 0.65%(f)
Portfolio turnover 118%(g) 118%(g) 74% 74%
Average commission rate (h) $ 0.029 $ 0.029 -- --
Net assets at end
of period (000) $ 14,781 $ 66,786 $ 11,501 $ 59,131
(a) Net of fees and expenses waived or borne by the Adviser which amounted to
--- --- $ 0.031 $ 0.031
</TABLE>
(b) Per share data was calculated using average shares outstanding
during the period.
(c) Total return at net asset value assuming all distributions
reinvested and no initial sales charge or contingent deferred
sales charge.
(d) Had the Adviser not waived or reimbursed a portion of expenses,
total return would have been reduced.
(e) Not annualized.
(f) The benefits derived from custody credits and directed brokerage
arrangements had no impact. Prior years' ratios are net of
benefits received, if any.
(g) Annualized.
(h) For fiscal years beginning on or after September 1, 1995, a fund
is required to disclose its average commission rate per share for
trades on which commissions are charged.
21
<PAGE>
FINANCIAL HIGHLIGHTS (b) - CONTINUED
Selected data for a share of each class outstanding throughout
each period are as follows:
<TABLE>
<CAPTION>
Year ended Year ended
October 31 October 31
------------------------------- ------------------------------
1994 1993
Class A Class B Class A Class B
------- ------- ------- -------
<S> <C> <C> <C> <C>
Net asset value -
Beginning of period $ 11.760 $ 11.720 $ 9.340 $ 9.310
----------- ----------- ----------- -----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income(a) 0.170 0.077 0.182 0.104
Net realized and
unrealized gain (loss) 0.969 0.959 2.461 2.447
----------- ----------- ----------- -----------
Total from Investment
Operations 1.139 1.036 2.643 2.551
----------- ----------- ----------- -----------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.166) (0.083) (0.223) (0.141)
From net realized gains (0.043) (0.043) -- --
----------- ----------- ----------- -----------
Total distributions
declared to shareholders (0.209) (0.126) (0.223) (0.141)
----------- ----------- ----------- -----------
Net asset value -
End of period $ 12.690 $ 12.630 $ 11.760 $ 11.720
----------- ----------- ----------- -----------
Total return(d)(e) 9.76% 8.88% 28.77% 27.70%
----------- ----------- ----------- -----------
RATIOS TO AVERAGE NET ASSETS
Expenses 1.25% 2.00% 1.25% 2.00%
Interest expense -- -- 0.01% 0.01%
Fees waived by the Adviser 0.36% 0.36% 0.51% 0.51%
Net investment income 1.38% 0.63% 1.75% 1.00%
Portfolio turnover 52% 52% 58% 58%
Net assets at end of period (000) $ 10,525 $ 63,139 $ 1,769 $ 40,837
(a) Net of fees and expenses waived or borne by the Adviser which
amounted to $ 0.045 $ 0.045 $ 0.053 $ 0.053
</TABLE>
(b) Per share data was calculated using average shares outstanding
during the period.
(c) The Fund commenced investment operations on June 8, 1992.
(d) Total return at net asset value assuming all distributions reinvested
and no initial sales charge or contingent deferred sales charge.
22
<PAGE>
FINANCIAL HIGHLIGHTS (b) - CONTINUED
Selected data for a share of each class outstanding throughout each period
are as follows:
<TABLE>
<CAPTION>
Period ended
October 31
------------
1992 (c)
Class A Class B
----------- -----------
<S> <C> <C>
Net asset value -
Beginning of period $ 10.000 $ 10.000
----------- -----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income(a) 0.088 0.059
Net realized and
unrealized gain (loss) (0.748) (0.749)
----------- -----------
Total from Investment
Operations (0.660) (0.690)
----------- -----------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income -- --
From net realized gains -- --
----------- -----------
Total distributions
declared to shareholders -- --
----------- -----------
Net asset value -
End of period $ 9.340 $ 9.310
----------- -----------
Total return(d)(e) (6.59%)(f) (6.90%)(f)
----------- -----------
RATIOS TO AVERAGE NET ASSETS
Expenses 1.25%(g) 2.00%(g)
Interest expense -- --
Fees waived by the Adviser 0.67%(g) 0.67%(g)
Net investment income 2.25%(g) 1.50%(g)
Portfolio turnover 14%(g) 14%(g)
Net assets at end of period (000) $ 164 $ 32,099
$ 0.026 $ 0.026
</TABLE>
(e) Had the Adviser not waived or reimbursed a portion of expenses, total return
would have been reduced.
(f) Not annualized.
(g) Annualized.
<PAGE>
SHAREHOLDER SERVICES
TO MAKE INVESTING EASIER
Colonial has one of the most extensive selections of shareholder services
available. Your financial adviser can help you arrange for any of these
services, or you can call Colonial directly at 1-800-345-6611.
AFFORDABLE ADDITIONAL INVESTMENTS: Add to your account with as little as $50;
$25 for an IRA account.
FREE EXCHANGES*: Exchange all or part of your account into the same share class
of another Colonial fund, by phone or mail, as your needs change over time.
EASY ACCESS TO YOUR MONEY*: Make withdrawals from your account by phone, by mail
or, for certain funds, by check.
ONE-YEAR REINSTATEMENT PRIVILEGE: If you need access to your money, but then
choose to return it to Colonial within one year, you can reinvest in any
Colonial fund of the same share class without any penalty or sales charge.
FUNDAMATIC: Make periodic investments as low as $50 from your checking account
to your Colonial account.
SYSTEMATIC WITHDRAWAL PLAN (SWP): Receive monthly, quarterly, or semiannual
payments via check or bank transmission. There is a $5,000 account value
required, but no minimum for the payment amount. The maximum annual withdrawal
is 12% of account balance at time SWP is established. SWPs by check are
processed on the 10th of each month.
AUTOMATED DOLLAR COST AVERAGING: Transfer money on a monthly basis from any
Colonial fund with a balance of $5,000 into the same share class of up to four
other Colonial funds. Minimum for each transfer is $100.
LOW COST IRAS: Choose from a broad range of retirement plans, including IRAs.
* Redemptions and exchanges are made at the next determined net asset value
after the request is received by Colonial. Proceeds may be more or less than
your original cost. The exchange privilege may be terminated at any time.
Investors who purchase Class B or Class D shares (for applicable funds), or $1
million or more of Class A shares, may be subject to a contingent deferred sales
charge.
24
<PAGE>
HOW TO REACH COLONIAL
BY PHONE OR BY MAIL
BY TELEPHONE
COLONIAL CUSTOMER CONNECTION - 1-800-345-6611
For 24-hour account information, call from your touch-tone phone. (Rotary
callers will be automatically connected to a representative during business
hours.) A recorded message will guide you through the menu:
<TABLE>
<CAPTION>
<S> <C>
For fund prices, dividends, and capital gains information ........................... press 1
For account information ............................................................. press 2
To speak to a Colonial representative ............................................... press 3
For yield and total return information .............................................. press 4
For duplicate statements or new supply of checks .................................... press 5
To order duplicate tax forms and year-end statements ................................ press 6
(February through May)
To review your options at any time during your call ................................. press *
</TABLE>
To speak with a shareholder services representative about your account, call
Monday to Friday, 8:00 am to 8:00 pm ET, and Saturdays from February through
mid-April, 10:00 am to 2:00 pm ET.
COLONIAL TELEPHONE TRANSACTION DEPARTMENT - 1-800-422-3737
To purchase, exchange, or sell shares by telephone, call Monday to Friday, 9:00
am to 8:00 pm ET. Transactions received after the close of the New York Stock
Exchange will receive the next business day's closing price.
COLONIAL LITERATURE DEPARTMENT - 1-800-248-2828
To request literature on any Colonial fund, call Monday to Friday, 8:30 am to
6:30 pm ET.
BY MAIL
COLONIAL INVESTORS SERVICE CENTER, INC.
P.O. Box 1722
BOSTON, MA 02105-1722
25
<PAGE>
SHAREHOLDER COMMUNICATIONS
TO KEEP YOU INFORMED
To make recordkeeping easy and keep you up-to-date on the performance of your
investments, you can expect to receive the following information about your
Colonial account:
TRANSACTION CONFIRMATIONS: Each time you make a purchase, sale, or exchange, you
receive a confirmation statement within just a few days.
QUARTERLY STATEMENTS: Every three months, if any transactions are made that
affect your share balance, this statement reports on your account activity
during the quarter (including any reinvestment of dividends). This statement
also provides year-to-date information.
COLONIAL SHAREHOLDER NEWS: Mailed with your quarterly account statements, this
newsletter highlights timely investment strategies, portfolio manager
commentary, and shareholder service updates.
TAX FORMS AND YEAR-END TAX GUIDE: Easy-to-use forms and timely information are
designed to make tax reporting simpler. (Usually mailed in January.)
AVERAGE COST BASIS STATEMENTS: If you sold or exchanged shares during the year,
this statement may help you calculate your gain/loss for tax purposes. (Usually
mailed in February.)
26
<PAGE>
IMPORTANT INFORMATION ABOUT THIS REPORT
The Transfer Agent for Colonial Global Equity Fund is:
Colonial Investors Service Center, Inc.
P.O. Box 1722
Boston, MA 02105-1722
1-800-345-6611
Colonial Global Equity Fund mails one shareholder report to each shareholder
address. If you would like more than one report, please call our Literature
Department at 1-800-248-2828 and additional reports will be sent to you.
This report has been prepared for shareholders of Colonial Global Equity Fund.
This report may also be used as sales literature when preceded or accompanied by
the current prospectus which provides details of sales charges, investment
objectives and operating policies of the Fund.
27
<PAGE>
[COLONIAL MUTUAL FUNDS LOGO]
Mutual Funds for
Planned Portfolios
TRUSTEES
ROBERT J. BIRNBAUM
Trustee (formerly Special Counsel, Dechert, Price & Rhoads; President and Chief
Operating Officer, New York Stock Exchange, Inc.)
TOM BLEASDALE
Trustee (formerly Chairman of the Board and Chief Executive Officer, Shore Bank
& Trust Company)
LORA S. COLLINS
Attorney, Kramer, Levin, Naftalis, Nessen, Kamin & Frankel
JAMES E. GRINNELL
Private Investor (formerly Senior Vice President-Operations, The Rockport
Company)
WILLIAM D. IRELAND, JR.
Trustee (formerly Chairman of the Board, Bank of New England-Worcester)
RICHARD W. LOWRY
Private Investor (formerly Chairman and Chief Executive Officer, U.S. Plywood
Corporation)
WILLIAM E. MAYER
Dean, College of Business and Management, University of Maryland (formerly Dean,
Simon Graduate School of Business, University of Rochester; Chairman and Chief
Executive Officer, C.S. First Boston Merchant Bank; and President and Chief
Executive Officer, The First Boston Corporation)
JAMES L. MOODY, JR.
Chairman of the Board, Hannaford Bros. Co. (formerly Chief Executive Officer,
Hannaford Bros. Co.)
JOHN J. NEUHAUSER
Dean, Boston College School of Management
GEORGE L. SHINN
Financial Consultant (formerly Chairman, Chief Executive Officer and Consultant,
The First Boston Corporation)
ROBERT L. SULLIVAN
Management Consultant (formerly Management Consultant, Saatchi and Saatchi
Consulting Ltd. and Principal and International Practice Director, Management
Consulting, Peat Marwick Main & Co.)
SINCLAIR WEEKS, JR.
Chairman of the Board, Reed & Barton Corporation
NOT FDIC- MAY LOSE VALUE
INSURED NO BANK GUARANTEE
COLONIAL INVESTMENT SERVICES, INC., Distributor (c) 1996
One Financial Center, Boston, Massachusetts 02111-2621, 617-426-3750
GE-03/247C-0496 M (6/96)
