<PAGE>
[GRAPHIC]
-----------------
COLONIAL GLOBAL
UTILITIES FUND
-----------------
SEMIANNUAL REPORT
APRIL 30, 1997
NOT FDIC- MAY LOSE VALUE
INSURED NO BANK GUARANTEE
<PAGE>
- --------------------------------------------------------------------------------
COLONIAL GLOBAL UTILITIES FUND HIGHLIGHTS
November 1, 1996 - April 30, 1997
INVESTMENT OBJECTIVE: Colonial Global Utilities Fund seeks current income and
long-term growth of capital and income.
THE FUND IS DESIGNED TO OFFER:
[CHECK MARK] Long-term growth potential
[CHECK MARK] Worldwide diversification
[CHECK MARK] Experienced professional management
PORTFOLIO MANAGER COMMENTARY: "By investing in large, liquid utility stocks and
diversifying investments among utilities sectors and countries, the Fund offers
investors a conservative way to participate in the growth potential of U.S. and
overseas markets." - Ophelia Barsketis
<TABLE>
COLONIAL GLOBAL UTILITIES FUND PERFORMANCE
<CAPTION>
CLASS A CLASS B CLASS D*
<S> <C> <C> <C>
Inception dates 10/15/91 3/27/95 3/27/95
Six-month distributions declared $ 0.216 $ 0.168 $ 0.168
per share
Six-month total returns, assuming 10.62% 10.12% 10.21%
reinvestment of all distributions and
no sales charge or contingent deferred
sales charge (CDSC)
Net asset value per share on 4/30/97 $13.05 $13.05 $13.05
</TABLE>
* On July 1, 1997, Class D shares will convert to Class C shares. If you own
Class D shares, you will receive a detailed letter explaining how this
conversion affects your account.
<TABLE>
TOP FIVE EQUITY HOLDINGS** TOP FIVE COUNTRIES**
(as of 4/30/97) (as of 4/30/97)
........................................... ..................................
<S> <C> <C> <C>
1.SFP Pipeline CV .................... 2.6% 1. United States .......... 51.4%
2.Telefonica de Espana ADR ........... 2.5% 2. United Kingdom ......... 4.9%
3.Portugal Telecom SA ADR ............ 2.4% 3. Spain .................. 4.1%
4.GTE Corp ........................... 2.4% 4. Portugal ............... 3.8%
5.Compagnie Generale des Eaux ........ 2.3% 5. Brazil ................. 3.7%
</TABLE>
** Country and holdings breakdowns are calculated as a percentage of total
net assets. Because the Fund is actively managed, there can be no guarantee
the Fund will continue to hold these securities or invest in these countries
in the future.
- --------------------------------------------------------------------------------
2
<PAGE>
- --------------------------------------------------------------------------------
PRESIDENT'S MESSAGE
To Fund Shareholders
I am pleased to present the semiannual report for [PHOTO:Harold W. Cogger]
Colonial Global Utilities Fund. This report reflects
on the investment environment for the six months
ended April 30, 1997 and on the performance of your
Fund.
The Fund's investment in utility stocks of established U.S. and international
companies offers shareholders a conservative way to participate in a dynamic
market sector. International market conditions have been improving amid numerous
signs of economic pick-ups in many parts of the world. Lower interest rates in
Europe have stimulated those economies. Stabilizing economic and political
conditions in Latin America have increased investor support for their stock
markets. While potential deregulation in the U.S. has restrained utility stock
performance, utilities elsewhere in the world are considered growth industries.
Developing countries have enormous unfilled demand for telephones, electricity
and water. A number of the stocks held by the Fund represent companies that
benefited from these trends.
In addition to providing attractive growth prospects, an international fund
offers an opportunity to diversify your core portfolio. World stock markets do
not tend to move in step with the domestic stock market. In fact, over a 10-year
period international markets have outperformed the U.S. We believe that high
U.S. stock prices relative to the rest of the world should result in investors
shifting their attention to more attractively priced international markets. When
that shift occurs, investors may be rewarded by rising prices and values in
international stocks.
The following report will provide you with specific information on your Fund's
performance as well as an in-depth report from your portfolio manager, including
a discussion of the Fund's conservative investment approach and the outlook for
the international stock markets. As always, we thank you for the opportunity to
help you meet your investment goals.
Respectfully,
/s/ Harold W. Cogger
Harold W. Cogger
President
June 13, 1997
Because market conditions change frequently, there can be no assurance that
the trends described will continue, come to pass or affect Fund performance.
- --------------------------------------------------------------------------------
3
<PAGE>
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT REPORT
OPHELIA BARSKETIS and DEBORAH JANSEN are co-portfolio managers of Colonial
Global Utilities Fund. Ms. Barsketis is a Senior Vice President at Stein Roe &
Farnham, Inc., and is the portfolio's adviser. Ms. Jansen is a Vice President at
Stein Roe & Farnham, Inc.
INVESTMENT ENVIRONMENT FOR GLOBAL UTILITY STOCKS MIXED
The overseas markets, representing approximately 51% of the Fund's assets, were
favorable. Both European and Latin American utility stocks generated attractive
returns. European stocks benefited from a resurgence of economic growth and from
increasing efforts to privatize many state-run utilities. Latin American
utilities addressing the enormous unmet demand for electric, telephone and gas
services in that region performed very well. Stabilizing economic and political
conditions in many developing nations were comforting to investors and supported
increasing stock prices.
U.S. utility stocks experienced more volatility. Despite stable earnings and
dividend growth, these stocks were battered by numerous changes in the direction
of interest rates. Ongoing deregulation issues created additional uncertainty.
UTILITY DEREGULATION PRESENTS OPPORTUNITY AS WELL AS UNCERTAINTY
We view deregulation as an opportunity. In the U.S., deregulation is a state-
by-state process, creating localized pockets of uncertainty that are often
reflected by declining stock prices. A deregulated environment requires utility
companies to become more efficient. Companies that have reduced their debt
loads, cut their dividends and taken other measures to ensure profitability
under a more competitive operating environment appear to offer attractive growth
potential. Internationally, deregulation usually follows privatization. At this
time, utility privatization is in its infancy and most international utilities
continue to benefit from monopoly protection. Good growth prospects include
those utilities that have begun to cut costs and increase their competitiveness
in advance of privatization and deregulation.
CONSERVATIVE INVESTMENT APPROACH REWARDS SHAREHOLDERS
Our conservative focus on quality companies in growing regions generated a
six-month total return of 10.62% for Class A shares. The Fund's composition
reflects our conservative investment style. Investments are focused on well-
capitalized utilities divided among the telephone, electric and gas sectors.
The Fund's assets are concentrated in regions where we can identify quality
growth companies, including the U.S. (51%), Europe (24%) and South America
(12%). Stock selection is driven by prospects for long-term earnings and cash
flow growth as well as the economy, currency and political environment in each
country.
For example, we sold some high quality U.S. utilities because of their
diversification strategy abroad. Companies have frequently overpaid to get into
a foreign country through acquisition. We believe this can limit the company's
growth prospects in the years following the acquisition. We prefer to invest in
international companies directly -- we get similar exposure to faster growing
regions and we think the stocks are more reasonably priced and offer greater
growth prospects.
- --------------------------------------------------------------------------------
4
<PAGE>
- --------------------------------------------------------------------------------
FUTURE PERFORMANCE WILL BE DRIVEN BY INTERNATIONAL UTILITIES
We will maintain the Fund's international focus. Potential regulatory changes in
the U.S. and uncertainty regarding the strength of the economy will continue to
restrain utility stock price appreciation. We see significantly greater growth
opportunities abroad from privatization efforts and from the enormous need for
basic utility services in many developing nations.
COLONIAL GLOBAL UTILITIES FUND INVESTMENT PERFORMANCE VS. MORGAN STANLEY CAPITAL
INTERNATIONAL WORLD INDEX ND AND THE STANDARD & POOR'S UTILITIES INDEX
Change in Value of $10,000 from 10/31/91 - 4/30/97
Based on NAV and MOP for Class A Shares
10/91 4/97
$18,000 MSCI $17,745
$16,000 NAV $17,286
$14,000 S&P Utilities $16,746
$12,000 MOP $16,292
<TABLE>
[LINE CHART]
<CAPTION>
- -------------------------------------------------------------------------------------------------------
Label AS OF DATE CGUF NAV MOP S&P Utility MSCI World IX N
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1 Oct 31, 91 10000 9425 10000 10000
2 Nov 30, 91 10047.81 9470.06 9908 9561
3 Dec 31, 91 10507.72 9903.528 10635 10254
4 Jan 31, 92 10355.83 9760.368 10063 10061
5 Feb 29, 92 10315.34 9722.207 9782 9885
6 Mar 31, 91 10202.78 9616.12 9643 9416
7 Apr 30, 92 10367.12 9771.015 10269 9544
8 May 31, 92 10635.7 10024.14 10254 9921
9 Jun 30, 92 10687.53 10072.99 10394 9585
10 Jul 31, 92 11136.53 10496.18 11222 9607
11 Aug 31, 92 11199.19 10555.24 11132 9837
12 Sep 30, 92 11199.04 10555.1 11213 9744
13 Oct 31, 92 11082.72 10445.46 11113 9477
14 Nov 30, 92 11242.56 10596.11 11092 9643
15 Dec 31, 92 11596.43 10929.64 11496 9718
16 Jan 31, 93 11855.39 11173.71 11674 9748
17 Feb 28, 93 12311.08 11603.19 12510 9976
18 Mar 31, 93 12605.17 11880.37 12736 10551
19 Apr 30, 93 12516.65 11796.94 12475 11037
20 May 31, 93 12517.33 11797.58 12463 11289
21 Jun 30, 93 12892.7 12151.37 13038 11191
22 Jul 31, 93 13025.53 12276.56 13340 11419
23 Aug 31, 93 13570.72 12790.4 13986 11939
24 Sep 30, 93 13615.27 12832.4 13951 11716
25 Oct 31, 93 13659.51 12874.09 13927 12036
26 Nov 30, 93 13153.08 12396.78 13224 11352
27 Dec 31, 93 13340.91 12573.8 13156 11905
28 Jan 31, 94 13643.31 12858.82 13241 12688
29 Feb 28, 94 13278.43 12514.92 12493 12521
30 Mar 31, 94 12772.37 12037.96 12070 11978
31 Apr 30, 94 12811.54 12074.87 12372 12345
32 May 31, 94 12559.26 11837.11 12037 12374
33 Jun 30, 94 12421.55 11707.31 12067 12337
34 Jul 31, 94 12718.64 11987.31 12472 12569
35 Aug 31, 94 12804.79 12068.52 12434 12945
36 Sep 30, 94 12536.59 11815.74 12124 12602
37 Oct 31, 94 12647.1 11919.89 12219 12957
38 Nov 30, 94 12424.04 11709.66 12044 12392
39 Dec 31, 94 12427.24 11712.68 12111 12509
40 Jan 31, 95 12697.89 11967.76 13054 12319
41 Feb 28, 95 12798.75 12062.82 13029 12495
42 Mar 31, 95 12826.96 12089.41 12946 13094
43 Apr 30, 95 13088.46 12335.87 13430 13548
44 May 31, 95 13535.83 12757.52 13849 13661
45 Jun 30, 95 13564.09 12784.15 13908 13653
46 Jul 31, 95 13766.04 12974.49 14266 14333
47 Aug 31, 95 13708.08 12919.87 14556 14011
48 Sep 30, 95 14011.88 13206.2 15468 14416
49 Oct 31, 95 13952.73 13150.45 15797 14186
50 Nov 30, 95 14222.18 13404.41 15969 14675
51 Dec 31, 95 14669.79 13826.28 17092 15101
52 Jan 31, 96 14888.91 14032.8 17316 15371
53 Feb 29, 96 14814.52 13962.68 16638 15462
54 Mar 31, 96 14677.29 13833.34 16279 15716
55 Apr 30, 96 14936.63 14077.78 16473 16082
56 May 31, 96 15142.21 14271.53 16436 16093
57 Jun 30, 96 15181.37 14308.44 17100 16171
58 Jul 31, 96 14687.18 13842.67 15993 15596
59 Aug 31, 96 15058.09 14192.25 16366 15772
60 Sep 30, 96 15222.75 14347.45 16523 16387
61 Oct 31, 96 15625.83 14727.35 17345 16498
62 Nov 30, 96 16433.42 15488.49 17733 17419
63 Dec 31, 96 16530.9 15580.37 17626 17137
64 Jan 31, 97 17089.59 16106.94 17712 17340
65 Feb 28, 97 17082.41 16100.17 17564 17536
66 Mar 31, 97 16940.08 15966.03 17032 17186
67 Apr 30, 97 17285.71 16291.78 16746 17745
</TABLE>
A $10,000 investment in Class B shares made on 3/27/95, (inception) at net asset
value (NAV) would have been valued at $13,332 on 4/30/97. The same investment
after deducting the applicable contingent deferred sales charge (CDSC) would
have grown to $13,032 on 4/30/97. A $10,000 investment in Class D shares made on
3/27/95, (inception) at NAVwould have been valued at $13,332 on 4/30/97. The
same investment after deducting the applicable CDSC would have grown to $13,198
on 4/30/97. The Morgan Stanley Capital International World Index ND is an
unmanaged index that tracks the performance of global stocks. The Standard &
Poor's Utilities Index is an unmanaged index that tracks the performance of
domestic utility stocks. Unlike mutual funds, an index does not incur fees or
charges and it is not possible to invest in an index.
<TABLE>
AVERAGE ANNUAL TOTAL RETURNS
As of 3/31/97 (Most Recent Quarter End)
- --------------------------------------------------------------------------------
<CAPTION>
CLASS A* CLASS B CLASS D
INCEPTION 10/15/91 3/27/95 3/27/95
NAV MOP NAV W/CDSC NAV MOP W/CDSC
- --------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C>
1 YEAR 15.42% 8.78% 14.56% 9.56% 14.56% 12.41%
- --------------------------------------------------------------------------------
SINCE INCEPTION 10.10 8.92 14.21 12.47 14.21 13.64
- --------------------------------------------------------------------------------
</TABLE>
*The Fund initially commenced operations as the Liberty Financial Utilities Fund
on 10/15/91. Performance shown is based in part on the performance of the
Liberty Financial Utilities Fund.
Past performance cannot predict future results. Returns and value of an
investment will vary, resulting in a gain or loss on sale. All results shown
assume reinvestment of distributions. NAV returns do not include sales charges
or CDSC. Maximum offering price (MOP) returns include the maximum sales charges
of 5.75% for Class A shares and 1% for Class D shares. The CDSC returns reflect
the maximum applicable charges of 5% for 1 year and 4% since inception for Class
B shares and 1% for Class D shares for 1 year. Performance for different share
classes will vary based on differences in sales charges and fees associated with
each class.
- --------------------------------------------------------------------------------
5
<PAGE>
LFC UTILITIES TRUST
<TABLE>
INVESTMENT PORTFOLIO
APRIL 30, 1997 (IN THOUSANDS)
<CAPTION>
COMMON STOCKS - 80.1% COUNTRY SHARES VALUE
- ----------------------------------------------------------------------
<S> <C> <C> <C>
TRANSPORTATION, COMMUNICATION, ELECTRIC,
GAS & SANITARY SERVICES - 70.8%
COMMUNICATIONS - 27.9%
Ameritech Corp. 61 $ 3,735
Citizens Utilities Group 305 3,543
GTE Corp. 91 4,152
Lucent Technologies, Inc. 60 3,571
MCI Communications Corp. 75 2,859
Nortel Inversora S.A 61 2,898
Oy Nokia Ab ADR Fn 44 2,818
Portugal Telecom S.A. ADR Pt 113 4,170
Telecom Italia (Saving Shares) It 1,370 2,953
Telebras ADR(a) Bl 25 2,869
Telecel-Comunicacoes Pessoais, S.A. Pt 27 2,326
Telefonica de Espana ADR Sp 56 4,343
Telefonica del Peru S.A. ADR 135 3,240
Tellabs, Inc. 45 1,774
WorldCom, Inc.(a) 114 2,736
-------
47,987
-------
ELECTRIC SERVICES - 28.4%
AES Corp.(a) 70 4,542
DPL, Inc. 130 3,071
Edison International 141 2,961
Empressa National ADR Sp 38 2,669
FPL Group, Inc. 65 2,901
Hong Kong Electric ADR HK 914 3,233
Korea Electric Power ADR Ko 175 2,975
Light-Servicos de Eletricidade S.A. Bl 8,250 3,421
National Power PLC ADR UK 101 3,539
NIPSCO Industries, Inc. 82 3,239
Pinnacle West Capital Corp. 89 2,542
Powergen PLC ADR UK 79 3,377
Texas Utilities Co. 83 2,801
Utilicorp United, Inc. 68 1,768
VEBA AG G 53 2,766
Viag AG G 7 2,942
-------
48,747
-------
</TABLE>
6
<PAGE>
<TABLE>
Investment Portfolio/April 30, 1997
---------------------------------------------------------------
<S> <C> <C> <C>
GAS SERVICES - 14.5%
British Gas PLC UK $530 1,540
CMS Energy Corp. 102 3,223
MCN Corp. 111 3,183
Northwest Natural Gas Co. 135 3,274
Petronas Gas Berhad Ma 580 2,010
Questar Corp. 84 3,192
Samchully Co. Ko 27 2,058
Transportation de Gas Del Sur S.A. ADS Ar 282 3,520
UGI Corp. 127 2,889
-------
24,889
-------
---------------------------------------------------------------
SERVICES - 9.3%
CONGLOMERATES & MISCELLANEOUS SERVICES - 3.4%
Grupo Carso S.A. de CV Mx 530 3,065
USA Waste Services, Inc 85 2,784
-------
5,849
-------
WATER SERVICES - 5.9%
American Water Works Company, Inc. 115 2,444
Compagnie Generale des Eaux Fr 28 3,900
Culligan Water Technology, Inc. 94 3,842
-------
10,186
-------
TOTAL COMMON STOCKS (cost of $113,612) 137,658
-------
CONVERTIBLE PREFERRED STOCKS - 4.1%
---------------------------------------------------------------
TRANSPORTATION, COMMUNICATION, ELECTRIC,
GAS & SANITARY SERVICES - 4.1%
COMMUNICATIONS - 2.2%
LM Ericsson Corp 4.250% Sw 784 3,675
-------
ELECTRIC - 1.9%
Calenergy Capital Trust II(b) 6.250% 60 3,330
-------
TOTAL CONVERTIBLE PREFERRED STOCKS (cost of $4,908) 7,005
-------
CORPORATE FIXED-INCOME BONDS 11.9% - CURRENCY PAR
--------------------------------------------------------------
TRANSPORTATION, COMMUNICATION, ELECTRIC,
GAS & SANITARY SERVICES - 11.9%
Communications - 5.1%
Telekom Malaysian Berhad,
7.125% 08/01/05 Ma 4,000 3,953
Telecom New Zealand,
6.750% 10/11/05 NZ 5,000 4,864
-------
8,817
-------
</TABLE>
7
<PAGE>
<TABLE>
Investment Portfolio/April 30, 1997
---------------------------------------------------------------
<CAPTION>
CORPORATE FIXED-INCOME BONDS - CONT. CURRENCY PAR VALUE
---------------------------------------------------------------
<S> <C> <C> <C>
TRANSPORTATION, COMMUNICATION, ELECTRIC,
GAS & SANITARY SERVICES - CONT.
ELECTRICAL SERVICES - 6.8%
Chilgener S.A.,
6.500% 01/15/06 Ch 115 $ 3,277
Financiera Energetica(c)
9.000% 11/08/99 Co 4,000 4,134
Hydro Quebec,
8.050% 07/07/24 Ca 4,000 4,267
--------
11,678
--------
TOTAL CORPORATE FIXED-INCOME BONDS (cost of $20,638) 20,495
--------
CORPORATE CONVERTIBLE BONDS - 2.6%
---------------------------------------------------------------
TRANSPORTATION, COMMUNICATION, ELECTRIC,
GAS & SANITARY SERVICES - 2.6%
GAS SERVICES - 2.6%
SFP Pipel(cost $4,403)
11.160% 08/15/10 3,700 4,477
--------
SHORT-TERM OBLIGATION - 1.9%
---------------------------------------------------------------
Associates Corp. of North America
5.600% 05/01/97 3,290 3,290
--------
TOTAL INVESTMENTS - 100.6% (cost of $146,851)(d) 172,925
--------
OTHER ASSETS & LIABILITIES, NET - (0.6)% (1,063)
---------------------------------------------------------------
NET ASSETS - 100% $171,862
--------
</TABLE>
NOTES TO INVESTMENT PORTFOLIO:
---------------------------------------------------------------
(a) Non-income producing.
(b) Calenergy Capital Trust II is a restricted security
which was acquired on February 20, 1997 at a cost of $3,014.
This security represents 1.9% of the Portfolio's net
assets at April 30, 1997.
(c) Financiera Energetica is a restricted security which
was acquired on June 1, 1995 at a cost of $4,126. This
security represents 2.4% of the Portfolio's net assets at
April 30, 1997.
(d) Cost for Federal income tax purposes is the same.
8
<PAGE>
<TABLE>
Investment Portfolio/April 30, 1997
----------------------------------------------------------
<CAPTION>
Summary of Securities by Country/
Country/Currency Currency Value % of Total
----------------------------------------------------------
<S> <C> <C> <C>
United States $ 88,300 51.1
United Kingdom UK 8,455 4.9
Spain Sp 7,012 4.1
Portugal Pt 6,496 3.8
Brazil Bl 6,290 3.6
Malaysia Ma 5,963 3.4
Germany G 5,708 3.3
Korea Ko 5,033 2.9
New Zealand NZ 4,864 2.8
Canada Ca 4,227 2.4
Colombia Co 4,134 2.4
France Fr 3,900 2.3
Sweden Sw 3,675 2.1
Argentina Ar 3,520 2.0
Chile Ch 3,278 1.9
Hong Kong HK 3,233 1.9
Mexico Mx 3,066 1.8
Italy It 2,953 1.7
Finland Fn 2,818 1.6
-------- -----
$172,925 100.0%
======== =====
</TABLE>
Certain securities are listed by country of underlying exposure but may
trade predominantly on other exchanges.
Acronym Name
------- ----
ADR American Depository Receipts
ADS American Depository Shares
See notes to financial statements
9
<PAGE>
LFC UTILITIES TRUST
<TABLE>
STATEMENT OF ASSETS & LIABILITIES
APRIL 30, 1997 (UNAUDITED)
(in thousands)
<S> <C> <C>
ASSETS
Investments at value (cost $146,851) $172,925
Receivable for:
Interest $ 534
Dividends 431
Other assets 126 1,091
------ --------
Total Assets 174,016
LIABILITIES
Payable for:
Investments purchased 2,061
Management, accounting
and transfer agent fees 80
Other 13
------
Total Liabilities 2,154
--------
NET ASSETS applicable to
investors' beneficial interest $171,862
========
</TABLE>
See notes to financial statements.
10
<PAGE>
LFC UTILITIES TRUST
<TABLE>
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED APRIL 30, 1997
(UNAUDITED)
(in thousands)
<S> <C> <C>
INVESTMENT INCOME
Dividends (net of foreign taxes withheld of $89) $ 1,968
Interest 1,415
-------
Total Investment Income 3,383
EXPENSES
Management fee $ 479
Custodian fees 13
Accounting fees 14
Audit & legal fees 10
Transfer agent fees 4
Other 3 523
------ -------
Net Investment Income 2,860
-------
NET REALIZED & UNREALIZED GAIN(LOSS) ON PORTFOLIO POSITIONS
Net realized gain(loss) on:
Investments 6,368
Foreign currency transactions (28)
------
Net realized gain from investments
and foreign currency transactions 6,340
Net unrealized appreciation(depreciation) during
the period on:
Investments 9,264
Translation of other assets and liabilities (11)
------
Net unrealized appreciation from
investments and foreign currency
transactions 9,253
-------
Net gain 15,593
-------
Net Increase in Net Assets from Operations $18,453
=======
</TABLE>
See notes to financial statements.
11
<PAGE>
LFC UTILITIES TRUST
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<CAPTION>
(Unaudited)
Six months
ended Year ended
(in thousands) April 30 October 31
--------------------
INCREASE (DECREASE) IN NET ASSETS 1997 1996
<S> <C> <C>
Operations:
Net investment income $ 2,860 $ 8,645
Net realized gain from investments
and foreign currency transactions 6,340 2,350
Net unrealized appreciation from
investments and foreign currency
transactions 9,253 12,784
--------- ---------
Net Increase from Operations 18,453 23,779
--------- ---------
Transactions in investors' beneficial interests
Contributions 94 38
Withdrawals (19,007) (65,100)
-------- --------
Net transactions in investors' beneficial
interest (18,913) (65,062)
-------- --------
Total Decrease (460) (41,283)
-------- --------
NET ASSETS
Beginning of period 172,322 213,605
-------- --------
End of period $171,862 $172,322
======== ========
</TABLE>
See notes to financial statements.
12
<PAGE>
LFC UTILITIES TRUST
<TABLE>
FINANCIAL HIGHLIGHTS
<CAPTION>
(Unaudited)
Six months
ended
April 30 Year ended October 31
-------- ---------------------------
1997 1996 1995 1994
---- ---- ---- ----
<S> <C> <C> <C> <C>
RATIOS TO AVERAGE NET ASSETS
Expenses 0.60% 0.60% 0.63(a) 0.61%
Net investment income 3.28% 4.47% 5.97(b) 5.48%
Portfolio turnover 28% 34% 46% 34%
Average commissions (per share) $0.0096(c) $0.0214(c) $ --- $ ---
</TABLE>
<TABLE>
<CAPTION>
Year Year
ended ended
October 31 October 31
---------- ----------
1993 1992
---- ----
<S> <C> <C>
RATIOS TO AVERAGE NET ASSETS
Expenses 0.64% 0.72%(a)
Net investment income 5.29% 6.36%(b)
Portfolio turnover 41% 31%
Average commissions (per share) $ --- $ ---
</TABLE>
(a) If the Portfolio had paid all of its expenses and there had
been no reimbursement from the Investment Adviser, as
described in Note 3, these ratios would have been 0.64% and
0.86% for the period ending October 31, 1995 and 1992.
(b) Computed giving effect to the Investment Adviser's expense
limitation undertaking.
(c) For fiscal years beginning on or after September 1, 1995, a
fund is required to disclose its average commissions rate per
share for trades on which commissions are charged.
See notes to financial statements.
13
<PAGE>
LFC UTILITIES TRUST
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1997 (UNAUDITED)
NOTE 1. ORGANIZATION AND ACCOUNTING POLICIES
- --------------------------------------------------------------------------------
ORGANIZATION: LFC Utilities Trust (the Portfolio) was organized on August 14,
1991 as a trust under Massachusetts law and is registered under the Investment
Company Act of 1940 as an open-end investment company. The Declaration of Trust
permits the Trustees to issue non-transferable interests in the Portfolio. The
Portfolio commenced operations on August 23, 1991.
The following is a summary of significant accounting policies followed by the
Portfolio in the preparation of its financial statements. The policies are in
conformity with generally accepted accounting principles. 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
increases and decreases in net assets from operations during the reporting
period. Actual results could differ from those estimates.
VALUATION OF INVESTMENTS: All securities are valued as of April 30, 1997.
Domestic securities traded on national securities exchanges are valued at the
last reported sales price or, if there are no sales, at the latest bid
quotation. Each domestic over-the-counter security for which the last sales
price is available from Nasdaq is valued at that price. All other domestic
over-the-counter securities for which reliable quotations are available are
valued at the latest bid quotation. Domestic securities convertible into equity
securities and long-term debt obligations are valued at a fair value using a
procedure determined in good faith by the Board of Trustees, which has
authorized the use of valuations provided by a pricing service. Foreign security
valuations are generally based upon market quotations which, depending upon
local convention or regulation, may be last sale price, last bid or asked price,
or the mean between last bid and asked price as of, in each case, the close of
the appropriate exchange or other designated time.
Other assets and securities of the Portfolio are valued by a method that the
Board of Trustees believes represents a fair value.
FEDERAL INCOME TAXES: The Portfolio has complied and intends to comply with the
applicable provisions of the Internal Revenue Service Code. Accordingly, no
provisions for federal income taxes is considered necessary.
14
<PAGE>
Notes to Financial Statements/April 30, 1997
- --------------------------------------------------------------------------------
FOREIGN CURRENCY TRANSLATIONS: The books and records of the Portfolio are
maintained in U.S. dollars. All assets and liabilities of the Portfolio
denominated in foreign currencies are translated into U.S. dollar amounts using
a rate that represents the mid-point between bid and asked market rates for such
currencies. Purchases and sales of foreign securities and income derived from
foreign securities are converted at the prevailing rate of exchange on the
respective dates of such transactions. The Portfolio may enter into "forward
currency contracts" for purchases and sales of securities denominated in foreign
currency.
OTHER: Investment transactions are accounted for on the trade date. Interest
income and expenses are recorded on the accrual basis. Dividend income is
recorded on the ex-dividend date.
NOTE 2. INVESTMENT TRANSACTIONS
- --------------------------------------------------------------------------------
Realized gains and losses are computed on the identified cost basis for both
financial reporting and federal income tax purposes. The cost of investments
purchased and proceeds from investments sold, excluding short-term investments,
for the six months ended April 30, 1997 were $46,830,158 and $62,676,892
respectively.
<TABLE>
Unrealized appreciation (depreciation) at April 30, 1997, based on cost of
investments for both financial statement and federal income tax purposes was:
<S> <C>
Gross unrealized appreciation $29,608,571
Gross unrealized depreciation (3,534,537)
-----------
Net unrealized appreciation $26,074,034
===========
</TABLE>
NOTE 3. TRANSACTIONS WITH AFFILIATES INVESTMENT MANAGEMENT
- --------------------------------------------------------------------------------
The Portfolio has a management agreement with Stein Roe & Farnham, Inc. (Stein
Roe), an indirect majority-owned subsidiary of Liberty Mutual Insurance Company
(Liberty Mutual) under which Stein Roe provides investment management and
administrative services. The investment management fee paid to Stein Roe is
accrued daily and paid monthly at an annual rate of 0.55 percent of the
Portfolio's average daily net assets up to $400 million and 0.50 percent of its
average daily net assets thereafter.
The transfer agent fees are paid to Stein Roe Services, Inc., an indirect,
majority-owned subsidiary of Liberty Mutual. For the six months ended April 30,
1997, the Portfolio incurred charges of $3,620.
Stein Roe also provides the Portfolio with certain accounting services. For the
six months ended April 30, 1997, the Portfolio incurred charges of $13,988.
EXPENSE LIMITATIONS: Stein Roe and Liberty Services had voluntarily agreed,
until March 24, 1995, not to impose their fees under their management and
administration agreements with the Colonial Global Utilities Fund (the
Fund)(formerly Liberty Financial Utilities Fund), which invests all its assets
in the Portfolio, and the Portfolio, to the extent those fees would cause the
aggregate expenses, as defined, of the Fund and the Portfolio to exceed the
rate of 1.25 percent per annum of the Fund's average daily net assets and to
guarantee payments of expenses in excess of that rate.
15
<PAGE>
COLONIAL GLOBAL UTILITIES FUND
<TABLE>
STATEMENT OF ASSETS & LIABILITIES
APRIL 30, 1997 (UNAUDITED)
(in thousands except for per share amounts and footnotes)
ASSETS
<S> <C> <C>
Investments in LFC Utilities Trust, at value $171,860
Receivable for Fund shares sold 53
--------
Total Assets 171,913
LIABILITIES
Payable for:
Fund shares repurchased 125
Distributions 29
Accrued:
Administration fee 14
Distribution fee 3
Bookkeeping fee 4
Service fee 35
Transfer Agent fee 27
Deferred Trustee Fees 1
Other 213
---
Total Liabilities 451
--------
NET ASSETS 171,462
========
Net asset value & redemption price per share -
Class A ($167,852/12,864) $ 13.05
========
Maximum offering price per share - Class A
($13.05/0.9425) $ 13.85(a)
========
Net asset value & offering price per share -
Class B ($2,820/216) $ 13.05(b)
========
Net asset value & redemption price per share -
Class D ($790/61) $ 13.05(b)
========
Maximum offering price per share - Class D
($13.05/0.9900) $ 13.18
========
COMPOSITION OF NET ASSETS
Capital paid in $140,574
Overdistributed net investment income (61)
Accumulated net realized gain 4,879
Net unrealized appreciation(depreciation) on:
Investments 26,074
Foreign currency transactions (4)
========
$171,462
========
</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.
16
<PAGE>
COLONIAL GLOBAL UTILITIES FUND
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED APRIL 30, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
(in thousands)
INVESTMENT INCOME
<S> <C> <C>
Dividend income from LFC Utilities Trust $1,977
Interest income from LFC Utilities Trust 1,415
Expenses allocated from LFC Utilities Trust (533) $ 2,859
------ -------
EXPENSES
Administration fee 88
Service fee 219
Distribution fee - Class B 8
Distribution fee - Class D 3
Audit 37
Transfer agent 175
Bookkeeping fee 24
Trustees fee 18
Custodian fee 38
Legal fee 16
Registration fee 58
Other 139 823
------ --------
Net Investment Income 2,036
NET REALIZED & UNREALIZED GAIN(LOSS) ON PORTFOLIO POSITIONS
Net realized gain(loss) on:
Investments 6,367
Foreign currency transactions (27)
------
Net Realized Gain 6,340
Net unrealized appreciation(depreciation) during
the period on:
Investments 9,267
Foreign currency transactions (14)
------
Net Unrealized Appreciation 9,253
-------
Net Gain 15,593
-------
Net Increase in Net Assets from Operations $17,629
=======
</TABLE>
See notes to financial statements.
17
<PAGE>
COLONIAL GLOBAL UTILITIES FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
(Unaudited)
Six months
ended Year ended
April 30 October 31
(in thousands) ----------- -----------
INCREASE (DECREASE) IN NET ASSETS 1997 1996
<S> <C> <C>
Operations:
Net investment income $ 2,036 $ 7,121
Net realized gain 6,340 2,350
Net unrealized appreciation 9,253 12,784
-------- --------
Net Increase from Operations 17,629 22,255
Distributions:
From net investment income - Class A (2,841) (6,447)
In excess of net investment income - Class A (96) --
From net investment income - Class B (25) (30)
In excess of net investment income - Class B (1) --
From net investment income - Class D (9) (12)
In excess of net investment income - Class D -- --
-------- --------
14,657 15,766
-------- --------
Fund Share Transactions:
Receipts for shares sold - Class A 2,158 5,017
Value of distributions reinvested - Class A 2,632 5,659
Cost of shares repurchased - Class A (21,238) (68,398)
-------- --------
(16,448) (57,722)
-------- --------
Receipts for shares sold - Class B 1,368 1,225
Value of distributions reinvested - Class B 21 23
Cost of shares repurchased - Class B (254) (541)
-------- --------
1,135 707
-------- --------
Receipts for shares sold - Class D 213 353
Value of distributions reinvested - Class D 6 10
Cost of shares repurchased - Class D (63) (120)
-------- --------
156 243
-------- --------
Net Decrease from Fund Share Transactions (15,157) (56,772)
-------- --------
Total Decrease (500) (41,006)
NET ASSETS
Beginning of period 171,962 212,968
-------- --------
End of period (net of overdistributed and
including undistributed net investment
income of $61 and $865, respectively) $171,462 $171,962
======== ========
</TABLE>
Statement of Changes in Net Assets continued on following page.
See notes to financial statements.
18
<PAGE>
COLONIAL GLOBAL UTILITIES FUND
STATEMENT OF CHANGES IN NET ASSETS - CONT.
<TABLE>
<CAPTION>
(Unaudited)
Six months
ended Year ended
(in thousands) April 30 October 31
----------- ----------
NUMBER OF FUND SHARES 1997 1996
<S> <C> <C>
Sold - Class A 169 434
Issued for distributions reinvested - Class A 209 494
Repurchased - Class A (1,663) (5,903)
------ ------
(1,285) (4,975)
------ ------
Sold - Class B 106 105
Issued for distributions reinvested - Class B 2 2
Repurchased - Class B (20) (46)
------ ------
88 61
------ ------
Sold - Class D 16 31
Issued for distributions reinvested - Class D 1 1
Repurchased - Class D (5) (11)
------ ------
12 21
------ ------
</TABLE>
See notes to financial statements.
19
<PAGE>
COLONIAL GLOBAL UTILITIES FUND
NOTES TO FINANCIAL STATEMENTS
APRIL 30,1997 (UNAUDITED)
NOTE 1. INTERIM FINANCIAL STATEMENTS
---------------------------------------------------------------------
In the opinion of management of Colonial Global Utilities Fund (the
Fund), a series of Colonial Trust III, the accompanying financial
statements contain all normal and recurring adjustments necessary
for the fair presentation of the financial position of the Fund at
April 30, 1997, 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
invests all of its investable assets in interests in the LFC Utilities
Trust (the Portfolio), a Massachusetts business trust, having the same
investment objective as the Fund. The value of the Fund's investment
in the Portfolio reflects the Fund's proportionate interest in the net
assets of the Portfolio (99.9% at April 30, 1997). The performance of
the Fund is directly affected by the performance of the Portfolio.
The financial statements of the Portfolio, including the portfolio of
investments are included elsewhere in this report and should be read
in conjunction with the Fund's financial statements. The Fund may
issue an unlimited number of shares. The Fund offers three classes of
shares: Class A, Class B and Class D. Class A shares are sold with a
front-end sales charge, and Class B shares 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. Class D shares are subject to a reduced
front-end sales charge, a contingent deferred sales charge on
redemptions made within one year after purchase and a continuing
distribution fee.
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 accounting policies that are
consistently followed by the Fund in the preparation of its financial
statements.
SECURITY VALUATION AND TRANSACTIONS: Valuation of securities by the
Portfolio is discussed in Note 1 of the Portfolio's Notes to Financial
Statements which are included elsewhere in this report.
20
<PAGE>
Notes to Financial Statements/April 30, 1997
---------------------------------------------------------------------
DETERMINATION OF CLASS NET ASSET VALUES AND FINANCIAL HIGHLIGHTS: All
income, expenses (other than the Class B and Class D distribution
fees), 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 and Class D net investment
income per share data reflects the distribution fee per share
applicable to Class B and Class D shares only.
Class B and Class D 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 and Class D shares 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.
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.
NOTE 3. FEES AND COMPENSATION PAID TO AFFILIATES
----------------------------------------------------------------------
ADMINISTRATOR FEE: Colonial Management Associates, Inc. (the
Administrator) is the administrator of the Fund and furnishes
accounting and other services and office facilities for a monthly fee
equal to 0.10% annually of the Fund's average net assets.
BOOKKEEPING FEE: The Administrator provides bookkeeping and pricing
services for $18,000 per year plus 0.0233% of the Fund's average net
assets over $50 million.
TRANSFER AGENT FEE: Colonial Investors Service Center, Inc. (the
Transfer Agent), an affiliate of the Administrator, provides
shareholder services for a monthly fee equal to 0.20% annually of the
Fund's average net assets and receives reimbursement for certain out
of pocket expenses.
UNDERWRITING DISCOUNTS, SERVICE AND DISTRIBUTION FEES: Colonial
Investment Services, Inc. (the Distributor), an affiliate of the
Administrator, is the Fund's principal underwriter. For the six
months ended April 30, 1997, the Fund has been advised that the
Distributor retained net underwriting discounts of $43,835 on sales of
the Fund's Class A shares and received $1,932 and $130 contingent
deferred sales charge (CDSC) on Class B and Class D share redemptions,
respectively.
21
<PAGE>
Notes to Financial Statements/April 30, 1997
---------------------------------------------------------------------
NOTE 3. FEES AND COMPENSATION PAID TO AFFILIATES - CONT.
---------------------------------------------------------------------
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.
The Fund has adopted a 12b-1 plan which requires the payment of a
service fee to the Distributor 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%
annually of the average net assets attributable to Class B and Class D
shares.
OTHER: The Fund pays no compensation to its officers, all of whom are
employees of the Administrator.
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
---------------------------------------------------------------------
CAPITAL LOSS CARRYFORWARDS: At October 31, 1996, capital loss carry-
forwards available (to the extent provided in regulations) to offset
future realized gains were approximately as follows:
<TABLE>
<CAPTION>
Year of Capital loss
expiration carryforward
--------- ------------
<S> <C>
2003 $1,461,000
==========
</TABLE>
Expired capital loss carryforwards, if any, are recorded as a
reduction of capital paid in.
To the extent loss carryforwards are used to offset any future
realized gains, it is unlikely that such gains would be distributed
since they may be taxable to shareholders as ordinary income.
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 off-shore loan rate plus 1/2 of 1%. There were no
borrowings under the line of credit during the six months ended
April 30, 1997.
22
<PAGE>
COLONIAL GLOBAL UTILITIES FUND
FINANCIAL HIGHLIGHTS
Selected data for a share of each class outstanding throughout each period
are as follows:
<TABLE>
<CAPTION>
(unaudited)
Six months
ended April 30
----------------------------------
1997
Class A Class B Class D
-------- -------- --------
<S> <C> <C> <C>
Net asset value -
Beginning of period $ 12.000 $12.010 $12.000
-------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income(a)(b) 0.149 0.101 0.101
Net realized and
unrealized gain(a) 1.117 1.107 1.117
-------- ------- -------
Total from Investment
Operations 1.266 1.208 1.218
-------- ------- -------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.209) (0.162) (0.168)
In excess of net
investment income (0.007) (0.006) --
-------- ------- -------
Total Distributions Declared
to Shareholders (0.216) (0.168) (0.168)
-------- ------- -------
Net asset value -
End of period $ 13.050 $13.050 $13.050
======== ======= =======
Total return(c)(d) 10.62% 10.12% 10.21%
======== ======= =======
RATIOS TO AVERAGE NET ASSETS:
Expenses(b)(e) 1.53% 2.28% 2.28%
Net investment income(b)(e) 2.33% 1.58% 1.58%
Net assets at end
of period(000) $167,852 $ 2,820 $ 790
</TABLE>
(a) Per share data was calculated using average shares outstanding during the
period.
(b) The per share amounts and ratios reflect income and expenses assuming
inclusion of the Fund's proportionate share of the income and expenses of
LFC Utilities Trust.
(c) Total return at net asset value assuming all distributions reinvested
and no initial sales charge or contingent deferred sales charge.
(d) Not annualized.
(e) Annualized.
23
<PAGE>
COLONIAL GLOBAL UTILITIES FUND
FINANCIAL HIGHLIGHTS - CONT.
Selected data for a share of each class outstanding throughout each period
are as follows:
<TABLE>
<CAPTION>
Year ended October 31
------------------------------------------
1996
Class A Class B Class D
-------- -------- --------
<S> <C> <C> <C>
Net asset value -
Beginning of period $ 11.080 $11.080 $11.080
-------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income(a)(b)(c) 0.427 0.340 0.340
Net realized and
unrealized gain (loss)(b) 0.878 0.889 0.879
-------- ------- -------
Total from Investment
Operations 1.305 1.229 1.219
-------- ------- -------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.385) (0.299) (0.299)
From net realized gains -- -- --
-------- ------- -------
Total Distributions
Declared to Shareholders (0.385) (0.299) (0.299)
-------- ------- -------
Net asset value -
End of period $ 12.000 $12.010 $12.000
======== ======= =======
Total return(e) 11.99% 11.25% 11.16%
======== ======= =======
RATIOS TO AVERAGE NET ASSETS:
Expenses 1.38%(c) 2.13%(c) 2.13%(c)
Net investment income 3.70%(c) 2.95%(c) 2.95%(c)
Fees and expenses waived
or borne by Liberty Securities
and LFC Utilities Trust -- -- --
Net assets at end
of period (000) $169,840 $ 1,538 $ 584
(a) Net of fees and expenses waived or borne by Liberty Securities which
amounted to: -- -- --
(b) Per share data was calculated using average shares outstanding during the
period.
(c) The per share amounts and ratios reflect income and expenses assuming
inclusion of the Fund's proportionate share of the income and expenses of
LFC Utilities Trust.
(d) Class B and Class D shares were initially offered on March 27, 1995.
Per share data reflect activity from that date.
(e) Total return at net asset value assuming all distributions reinvested
and no initial sales charge or contingent deferred sales charge.
(f) Total return would have been lower had Liberty Securities and LFC
Utilities Trust not waived certain expenses.
(g) Not annualized.
(h) Annualized.
</TABLE>
24
<PAGE>
COLONIAL GLOBAL UTILITIES FUND
FINANCIAL HIGHLIGHTS - CONT.
<TABLE>
<CAPTION>
Year ended October 31
- ------------------------------------------------------------------------------------------
1995 1994 1993
Class A Class B(d) Class D(d) Class A Class A
--------- ----------- ----------- --------- ---------
<S> <C> <C> <C> <C>
$ 10.610 $10.420 $10.420 $ 12.150 $ 10.430
- -------- ------- ------- -------- --------
0.536 0.248 0.248 0.550 0.570
0.520 0.665 0.665 (1.430) 1.790
- -------- ------- ------- -------- --------
1.056 0.913 0.913 (0.880) 2.360
- -------- ------- ------- -------- --------
(0.517) (0.253) (0.253) (0.500) (0.610)
(0.069) -- -- (0.160) (0.030)
- -------- ------- ------- -------- --------
(0.586) (0.253) (0.253) (0.660) (0.640)
- -------- ------- ------- -------- --------
$ 11.080 $11.080 $11.080 $ 10.610 $ 12.150
======== ======= ======= ======== ========
10.32%(f) 8.82%(g) 8.82%(g) (7.40)% 23.30%
======== ======= ======= ======== ========
1.29%(c) 2.05%(c)(h) 2.05%(c)(h) 1.20% 1.13%
5.14%(c) 3.73%(c)(h) 3.73%(c)(h) 4.90% 4.80%
0.03% 0.02%(h) 0.02%(h) -- --
$211,916 $ 745 $ 307 $260,450 $304,500
$ 0.002 -- -- -- --
</TABLE>
25
<PAGE>
COLONIAL GLOBAL UTILITIES FUND
FINANCIAL HIGHLIGHTS - CONT.
Selected data for a share of each class outstanding throughout each period
are as follows:
<TABLE>
<CAPTION>
Year ended
October 31
----------
1992
Class A
----------
<S> <C>
Net asset value -
Beginning of period $ 9.990
--------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income(a)(b) 0.590
Net realized and
unrealized gain 0.460
--------
Total from Investment
Operations 1.050
--------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment
income (0.610)
--------
Net asset value -
End of period $ 10.430
========
Total return(c)(d) 10.80%
========
RATIOS TO AVERAGE NET ASSETS:
Expenses(a) 1.25%(e)
Net investment
income(a) 5.81%(b)
Net assets at end
of period(000) $118,977
</TABLE>
(a) The per share amounts and ratios reflect income and expenses assuming
inclusion of the Fund's proportionate share of the income and expenses
of LFC Utilities Trust.
(b) Computed giving effect to the Investment Adviser's and Administrator's
expense limitation undertaking.
(c) Total return based on net asset value with all distributions
reinvested.
(d) Total return would have been lower had the Administrator not waived
certain expenses.
(e) If the Fund had paid all of its expenses excluding distribution fees
waived and there had been no reimbursement from the Investment Adviser
and the Administrator, the ratio would have been 1.61% for the period
ended October 31, 1992.
26
<PAGE>
IMPORTANT INFORMATION ABOUT THIS REPORT
The Transfer Agent for Colonial Global Utilities Fund is:
Colonial Investors Service Center, Inc.
P.O. Box 1722
Boston, MA 02105-1722
1-800-345-6611
Colonial Global Utilities Fund mails one shareholder report to each shareholder
address. If you would like more than one report, please call Colonial at
1-800-426-3750 and additional reports will be sent to you.
This report has been prepared for shareholders of Colonial Global Utilities
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
Retired (formerly Special Counsel, Dechert, Price & Rhoads; President and Chief
Operating Officer, New York Stock Exchange, Inc.)
TOM BLEASDALE
Retired (formerly Chairman of the Board and Chief Executive Officer, Shore Bank
& Trust Company)
LORA S. COLLINS
Attorney (formerly Attorney, Kramer, Levin, Naftalis, Nessen, Kamin & Frankel)
JAMES E. GRINNELL
Private Investor (formerly Senior Vice President-Operations, The Rockport
Company)
WILLIAM D. IRELAND, JR.
Retired (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
Partner, Development Capital, L.L.C. (formerly Dean, College of Business and
Management, University of Maryland; 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.
Retired (formerly Chairman of the Board and 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
Retired Partner, Peat Marwick Main & Co. (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
COLONIAL INVESTMENT SERVICES, INC., Distributor[Copyright]1997
A Liberty Financial Company (NYSE:L)
One Financial Center, Boston, Massachusetts 02111-2621, 617-426-3750
GU-03/666D-0497 M (6/97)
- --------------------------------------------------------------------------------
