<PAGE>
[LOGO]
-----------------
COLONIAL GLOBAL
EQUITY FUND
-----------------
SEMIANNUAL REPORT
APRIL 30, 1997
-----------------------------
NOT FDIC MAY LOSE VALUE
INSURED NO BANK GUARANTEE
-----------------------------
<PAGE>
- --------------------------------------------------------------------------------
COLONIAL GLOBAL EQUITY FUND HIGHLIGHTS
NOVEMBER 1, 1996 - APRIL 30, 1997
INVESTMENT OBJECTIVE: Colonial Global Equity Fund seeks long-term growth by
investing primarily in global equities.
THE FUND IS DESIGNED TO OFFER:
[X] Opportunities for long-term growth of capital
[X] International investment exposure
[X] Global diversification to help reduce risk
[X] Experienced professional management
PORTFOLIO MANAGER COMMENTARY: "In searching for consistent results for our
shareholders, we look for companies with earnings growth around the world, while
remaining value oriented." -- Gita Rao
<TABLE>
COLONIAL GLOBAL EQUITY FUND PERFORMANCE
<CAPTION>
- ------------------------------------------ --------
CLASS A CLASS B
INCEPTION DATE 6/8/92 6/8/92
- ------------------------------------------ --------
<S> <C> <C>
Six-month distributions declared per share $1.458 $1.443
Six-month total returns, assuming 10.05% 9.58%
reinvestment of all distributions
and no sales charge or contingent
deferred sales charge (CDSC)
Net asset value per share on 4/30/97 $13.26 $13.12
<CAPTION>
TOP FIVE HOLDINGS* TOP FIVE COUNTRIES*
(as of 4/30/97) (as of 4/30/97)
<S> <C> <C> <C>
1. Safeway, Inc. ........... 2.0% 1. United States ........... 19.3%
2. Unilever N.V. ........... 2.0% 2. Japan ................... 7.9%
3. Roche Holding ........... 1.8% 3. Netherlands ............. 6.9%
4. Service Corp. Int'l ..... 1.7% 4. Germany ................. 6.8%
5. Argentaria SA ........... 1.6% 5. United Kingdom .......... 6.8%
</TABLE>
*Country and holding breakdowns are calculated as a percent 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.
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2
<PAGE>
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PRESIDENT'S MESSAGE
TO FUND SHAREHOLDERS
I'm pleased to present your Fund's semiannual report,
for the six-month period ended April 30, 1997.
[PHOTOGRAPH]
Though most press and investor attention was focused
on the surprising strength of the U.S. market averages,
the international investment scene was also newsworthy,
though not as dramatic. Most of Europe, led by Germany,
is enjoying an economic rebirth after years of slow
growth. Exports are up, inflation is under control in
most areas, and currencies are stable once again. It is expected that an
"all-Europe" currency will finally be adopted later this year. This will
standardize pricing and values, put large and small European nations on equal
trade levels -- and is expected to lead to a surge in exports and new stock
market growth.
"WE ARE EVER WATCHFUL FOR FOREIGN VALUES."
Foreign markets do not behave as one entity. While the U.S. market is primarily
measured by the Standard & Poor's 500 Index, each nation overseas has its own
trading exchange, currency rate, major industries, hours of operation and
investor protections. We are ever watchful for foreign values and investment
opportunities, and are looking favorably at Germany, Switzerland, Finland, Hong
Kong and other areas.
"WE SEARCH FOR VALUE ON A GLOBAL BASIS."
Our New Value investment strategy looks for relative value. This casts a wider
net than just searching for "cheap" stocks. We search for value on a global
basis -- looking for stocks of companies with attractive current prices, a
consistent record of operating performance and/or favorable future growth
prospects. We evaluate many thousands of stocks in many countries, all in a
disciplined and ongoing search for value. Our approach is designed to pursue
consistent Fund performance, with greater worldwide diversification and growth
opportunity for our investors.
At the same time, we respect your concerns about risk. With a price-sensitive
investing approach and exceptional global diversification, our New Value
strategy presents a reasonable way of dealing with market risk.
Detailed information on your Fund's performance appears on the following pages.
We appreciate your continued confidence in the Fund and thank you for giving us
the opportunity to serve your investment needs.
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
GITA RAO is lead portfolio manager of the Fund and Vice President of Colonial
Management Associates, Inc., the Fund's investment adviser. Ms. Rao specializes
in the analysis of global equities. NICOLAS GHAJAR is an associate portfolio
manager for the Fund.
"U.S. MARKET'S PERFORMANCE REFLECTED INNER STRENGTH."
For the third year in a row, the stock market's barometers reflected the inner
strengths of America's industrial, technical and service leaders, surpassing one
market high with another throughout the last six months, despite occasional rest
periods.
We invest by selecting attractive countries first, then attractive companies
within that country. We have a top-down process for selecting countries and a
bottom-up, fundamentally-driven process for selecting stocks. This process
resulted in the U.S. being our top investment area, with approximately 21% of
our assets. Likewise, two of our top ten holdings, Safeway and General Electric,
are U.S. leaders in their fields.
"WE LOOK FOR -- AND FIND -- COUNTRIES WITH CHEAPER COMPANIES."
We have investments in more than 20 countries in all parts of the globe. We are
always looking for value first and foremost -- asking ourselves if this company
will grow, and if its country will participate in the global economic revival.
Our investment process assesses earnings growth -- so we're always on the
lookout for countries and companies that are "cheap" relative to other stocks
we could own. For example, as more Latin American companies become privatized,
exceptional values are appearing and we are researching new investments there.
"WE'RE FINDING VALUE IN GERMANY AND SCANDINAVIA -- AS EUROPE SURGES FORWARD."
Europe is in the early stages of an economic surge forward. Auto manufacturers,
specialty chemical and heavy industry plants have been rebuilt, automated and
are now much more efficient. They offer new values from a lower base. We
continue to find this value in Germany and throughout Scandinavia.
During the period, we cut back our position in BASF, Germany's diversified
chemicals firm when we felt the company no longer offered significant value. We
did, however, realize a double-digit gain on our holdings. We took profits in
Spain's Union Electrica Fenosa, a major utility which produces and markets
- --------------------------------------------------------------------------------
4
<PAGE>
- --------------------------------------------------------------------------------
electric power. And, we captured major gains on Foreningsbanken, Sweden's
second-largest bank holding company. The bank now operates 517 branch
offices in Sweden. It's a very well-run company that brought good value to our
Fund. Recently, however, Sweden's currency weakened, so we're looking at its
neighbor, Finland -- which has attractive companies available at relatively low
stock prices.
"DIVERSIFICATION....MEANS INVESTING IN EMERGING MARKETS, TOO."
Getting better diversification for our shareholders is important to us. That's
why we invest in emerging nations and also have several mutual funds invested in
individual countries such as Korea, Chile and Spain. As these markets grow, our
investment should grow at lower cost and with lower overall risk.
"THE GLOBAL OUTLOOK IS FAVORABLE."
The U.S. market has dominated the global arena lately, but we envision a shift
in performance, perhaps by year end. In selecting stocks for the Fund, we
believe we will have many opportunities to find exceptional values.
- --------------------------------------------------------------------------------
5
<PAGE>
- --------------------------------------------------------------------------------
COLONIAL GLOBAL EQUITY FUND'S INVESTMENT PERFORMANCE VS.
THE MORGAN STANLEY CAPITAL INTERNATIONAL WORLD (GDP) INDEX
CHANGE IN VALUE OF $10,000 FROM 6/30/92 - 4/30/97
<TABLE>
CLASS A SHARES
Based on NAV and MOP
<CAPTION>
Label A B C
- -----------------------------------------------------------------------
Label CGEFA NAV MOP MSCI
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1 June 92 10000 9425 10000
- -----------------------------------------------------------------------
2 Jul 31, 92 10080.81 9501.161 9888
- -----------------------------------------------------------------------
3 Aug 31, 92 9868.687 9301.237 10095
- -----------------------------------------------------------------------
4 Sep 30, 92 9747.475 9186.995 9845
- -----------------------------------------------------------------------
5 Oct 31, 92 9434.344 8891.869 9596
- -----------------------------------------------------------------------
6 Nov 30, 92 9505.051 8958.511 9700
- -----------------------------------------------------------------------
7 Dec 31, 92 9690.426 9133.227 9725
- -----------------------------------------------------------------------
8 Jan 31, 93 9946.245 9374.336 9802
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9 Feb 28, 93 10069.04 9490.068 10060
- -----------------------------------------------------------------------
10 Mar 31, 93 10539.75 9933.71 10555
- -----------------------------------------------------------------------
11 Apr 30, 93 10754.63 10136.24 11097
- -----------------------------------------------------------------------
12 May 31, 93 11010.45 10377.35 11286
- -----------------------------------------------------------------------
13 Jun 30, 93 10733.58 10116.4 11147
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14 Jul 31, 93 10960.86 10330.61 11335
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15 Aug 31, 93 11745.99 11070.59 11988
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16 Sep 30, 93 11756.32 11080.33 11751
- -----------------------------------------------------------------------
17 Oct 31, 93 12148.88 11450.32 12040
- -----------------------------------------------------------------------
18 Nov 30, 93 11973.26 11284.8 11359
- -----------------------------------------------------------------------
19 Dec 31, 93 13101.27 12347.94 11913
- -----------------------------------------------------------------------
20 Jan 31, 94 13685.4 12898.49 12649
- -----------------------------------------------------------------------
21 Feb 28, 94 13257.73 12495.41 12455
- -----------------------------------------------------------------------
22 Mar 31, 94 12704.89 11974.36 12137
- -----------------------------------------------------------------------
23 Apr 30, 94 12861.35 12121.83 12572
- -----------------------------------------------------------------------
24 May 31, 94 12746.61 12013.68 12429
- -----------------------------------------------------------------------
25 Jun 30, 94 12567.44 11844.81 12274
- -----------------------------------------------------------------------
26 Jul 31, 94 13008.77 12260.77 12593
- -----------------------------------------------------------------------
27 Aug 31, 94 13418.58 12647.01 12901
- -----------------------------------------------------------------------
28 Sep 30, 94 13124.36 12369.71 12514
- -----------------------------------------------------------------------
29 Oct 31, 94 13334.52 12567.78 12824
- -----------------------------------------------------------------------
30 Nov 30, 94 12767.09 12032.98 12276
- -----------------------------------------------------------------------
31 Dec 31, 94 12889.25 12148.11 12384
- -----------------------------------------------------------------------
32 Jan 31, 95 12509.81 11790.5 12273
- -----------------------------------------------------------------------
33 Feb 28, 95 12923.74 12180.62 12443
- -----------------------------------------------------------------------
34 Mar 31, 95 13211.19 12451.54 12898
- -----------------------------------------------------------------------
35 Apr 30, 95 13613.62 12830.83 13379
- -----------------------------------------------------------------------
36 May 31, 95 13878.07 13080.08 13489
- -----------------------------------------------------------------------
37 Jun 30, 95 14095.25 13284.77 13512
- -----------------------------------------------------------------------
38 Jul 31, 95 15045.75 14180.62 14221
- -----------------------------------------------------------------------
39 Aug 31, 95 14767.55 13918.42 13811
- -----------------------------------------------------------------------
40 Sep 30, 95 14767.55 13918.42 14097
- -----------------------------------------------------------------------
41 Oct 31, 95 14431.4 13601.6 13808
- -----------------------------------------------------------------------
42 Nov 30, 95 14663.23 13820.1 14191
- -----------------------------------------------------------------------
43 Dec 31, 95 15009.89 14146.82 14633
- -----------------------------------------------------------------------
44 Jan 31, 96 15502.02 14610.65 14925
- -----------------------------------------------------------------------
45 Feb 29, 96 15649.66 14749.8 14983
- -----------------------------------------------------------------------
46 Mar 31, 96 15883.42 14970.12 15147
- -----------------------------------------------------------------------
47 Apr 30, 96 16350.94 15410.76 15518
- -----------------------------------------------------------------------
48 May 31, 96 16486.28 15538.31 15495
- -----------------------------------------------------------------------
49 Jun 30, 96 16388.07 15445.76 15572
- -----------------------------------------------------------------------
50 Jul 31, 96 15819.56 14909.93 15026
- -----------------------------------------------------------------------
51 Aug 31, 96 16116.17 15189.5 15124
- -----------------------------------------------------------------------
52 Sep 30, 96 16536.38 15585.54 15663
- -----------------------------------------------------------------------
53 Oct 31, 96 16610.54 15655.43 15697
- -----------------------------------------------------------------------
54 Nov 30, 96 17525.1 16517.41 16534
- -----------------------------------------------------------------------
55 Dec 31, 96 17865.7 16838.42 16315
- -----------------------------------------------------------------------
56 Jan 31, 97 18044.91 17007.32 16496
- -----------------------------------------------------------------------
57 Feb 28, 97 18155.19 17111.26 16583
- -----------------------------------------------------------------------
58 Mar 31, 97 17934.62 16903.38 16469
- -----------------------------------------------------------------------
59 Apr 30, 97 18279.25 17228.2 16800
- -----------------------------------------------------------------------
</TABLE>
<TABLE>
CLASS B SHARES
Based on NAV and Maximum CDSC
<CAPTION>
Label A B C
- -----------------------------------------------------------------------
Label CGEFB NAV MOP MSCI
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1 Jun 30, 92 10000 10000 10000
- -----------------------------------------------------------------------
2 Jul 31, 92 10080.89 10080.89 9888
- -----------------------------------------------------------------------
3 Aug 31, 92 9868.554 9868.554 10095
- -----------------------------------------------------------------------
4 Sep 30, 92 9726.997 9726.997 9845
- -----------------------------------------------------------------------
5 Oct 31, 92 9413.549 9413.549 9596
- -----------------------------------------------------------------------
6 Nov 30, 92 9484.327 9484.327 9700
- -----------------------------------------------------------------------
7 Dec 31, 92 9646.364 9646.364 9725
- -----------------------------------------------------------------------
8 Jan 31, 93 9891.093 9891.093 9802
- -----------------------------------------------------------------------
9 Feb 28, 93 10013.46 10013.46 10060
- -----------------------------------------------------------------------
10 Mar 31, 93 10472.32 10472.32 10555
- -----------------------------------------------------------------------
11 Apr 30, 93 10676.26 10676.26 11097
- -----------------------------------------------------------------------
12 May 31, 93 10920.99 10920.99 11286
- -----------------------------------------------------------------------
13 Jun 30, 93 10646.48 10646.48 11147
- -----------------------------------------------------------------------
14 Jul 31, 93 10872.12 10872.12 11335
- -----------------------------------------------------------------------
15 Aug 31, 93 11641.38 11641.38 11988
- -----------------------------------------------------------------------
16 Sep 30, 93 11641.38 11641.38 11751
- -----------------------------------------------------------------------
17 Oct 31, 93 12020.88 12020.88 12040
- -----------------------------------------------------------------------
18 Nov 30, 93 11846.51 11846.51 11359
- -----------------------------------------------------------------------
19 Dec 31, 93 12956.45 12956.45 11913
- -----------------------------------------------------------------------
20 Jan 31, 94 13513.94 13513.94 12649
- -----------------------------------------------------------------------
21 Feb 28, 94 13080.34 13080.34 12455
- -----------------------------------------------------------------------
22 Mar 31, 94 12522.85 12522.85 12137
- -----------------------------------------------------------------------
23 Apr 30, 94 12677.71 12677.71 12572
- -----------------------------------------------------------------------
24 May 31, 94 12543.5 12543.5 12429
- -----------------------------------------------------------------------
25 Jun 30, 94 12363.13 12363.13 12274
- -----------------------------------------------------------------------
26 Jul 31, 94 12788.01 12788.01 12593
- -----------------------------------------------------------------------
27 Aug 31, 94 13192.17 13192.17 12901
- -----------------------------------------------------------------------
28 Sep 30, 94 12891.64 12891.64 12514
- -----------------------------------------------------------------------
29 Oct 31, 94 13088.54 13088.54 12824
- -----------------------------------------------------------------------
30 Nov 30, 94 12528.94 12528.94 12276
- -----------------------------------------------------------------------
31 Dec 31, 94 12631.88 12631.88 12384
- -----------------------------------------------------------------------
32 Jan 31, 95 12259.02 12259.02 12273
- -----------------------------------------------------------------------
33 Feb 28, 95 12665.77 12665.77 12443
- -----------------------------------------------------------------------
34 Mar 31, 95 12936.94 12936.94 12898
- -----------------------------------------------------------------------
35 Apr 30, 95 13321.09 13321.09 13379
- -----------------------------------------------------------------------
36 May 31, 95 13558.36 13558.36 13489
- -----------------------------------------------------------------------
37 Jun 30, 95 13765.7 13765.7 13512
- -----------------------------------------------------------------------
38 Jul 31, 95 14684.93 14684.93 14221
- -----------------------------------------------------------------------
39 Aug 31, 95 14401.21 14401.21 13811
- -----------------------------------------------------------------------
40 Sep 30, 95 14401.21 14401.21 14097
- -----------------------------------------------------------------------
41 Oct 31, 95 14060.76 14060.76 13808
- -----------------------------------------------------------------------
42 Nov 30, 95 14276.38 14276.38 14191
- -----------------------------------------------------------------------
43 Dec 31, 95 14604.74 14604.74 14633
- -----------------------------------------------------------------------
44 Jan 31, 96 15072.77 15072.77 14925
- -----------------------------------------------------------------------
45 Feb 29, 96 15216.77 15216.77 14983
- -----------------------------------------------------------------------
46 Mar 31, 96 15420.78 15420.78 15147
- -----------------------------------------------------------------------
47 Apr 30, 96 15840.81 15840.81 15518
- -----------------------------------------------------------------------
48 May 31, 96 15972.81 15972.81 15495
- -----------------------------------------------------------------------
49 Jun 30, 96 15855.36 15855.36 15572
- -----------------------------------------------------------------------
50 Jul 31, 96 15302.82 15302.82 15026
- -----------------------------------------------------------------------
51 Aug 31, 96 15579.09 15579.09 15124
- -----------------------------------------------------------------------
52 Sep 30, 96 15975.48 15975.48 15663
- -----------------------------------------------------------------------
53 Oct 31, 96 16035.53 16035.53 15697
- -----------------------------------------------------------------------
54 Nov 30, 96 16912.38 16912.38 16534
- -----------------------------------------------------------------------
55 Dec 31, 96 17237.25 17237.25 16315
- -----------------------------------------------------------------------
56 Jan 31, 97 17384.58 17384.58 16496
- -----------------------------------------------------------------------
57 Feb 28, 97 17478.33 17478.33 16583
- -----------------------------------------------------------------------
58 Mar 31, 97 17264.04 17264.04 16469
- -----------------------------------------------------------------------
59 Apr 30, 97 17572.08 17372.08 16800
- -----------------------------------------------------------------------
</TABLE>
<TABLE>
Average Annual Total Returns
As of 3/31/97 (Most Recent Quarter End)
<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 12.91% 6.42% 11.95% 6.95%
- --------------------------------------------------------------------------------
SINCE INCEPTION 12.66% 11.28% 11.75% 11.47%
- --------------------------------------------------------------------------------
</TABLE>
The Morgan Stanley Capital International World (GDP) Index is an unmanaged index
that tracks the performance of global stocks. Unlike mutual funds, an index does
not incur fees or charges, and it is not possible to invest in an index.
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. Net asset value (NAV) returns do not
include sales charge or contingent deferred sales charges (CDSC). Maximum
offering price (MOP) returns include the maximum sales charge of 5.75%. The CDSC
returns reflect charges of: one year, 5%; since inception, 2%. Performance for
different share classes will vary based on differences in sales charges and fees
associated with each class.
- --------------------------------------------------------------------------------
6
<PAGE>
INVESTMENT PORTFOLIO
APRIL 30, 1997 (UNAUDITED, IN THOUSANDS)
<TABLE>
<CAPTION>
COMMON STOCKS - 90.2% COUNTRY SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
CONSTRUCTION - 1.4%
BUILDING CONSTRUCTION - 0.6%
Hollandsche Beton Groep NV Ne 3 $ 586
------
HEAVY CONSTRUCTION - NON BUILDING CONSTRUCTION - 0.8%
Stork NV Ne 18 793
------
- --------------------------------------------------------------------------------
FINANCE, INSURANCE & REAL ESTATE - 21.9%
DEPOSITORY INSTITUTIONS - 10.0%
Argentaria SA Sp 34 1,513
Banca Popolare di Milano (BPM) It 147 721
BankAmerica Corp. 8 958
Barclays PLC UK 42 783
Bayerische Hypotheken-und
Wechsel-Bank AG (a) G 28 888
Development Bank of Singapore LTD. Si 35 416
Foreningsbanken AB Sw 175 975
HSBC Holdings PLC HK 45 1,134
National Westminster Bank PLC UK 28 326
Storebrand ASA (b) No 72 440
Westpac Banking Corp. Au 264 1,426
------
9,580
------
HOLDING COMPANIES - 0.8%
HSBC Holdings PLC UK 22 555
Power Corp. of Canada Ca 10 216
------
771
------
INSURANCE CARRIERS - 3.9%
AXA Fr 14 878
Cigna Corp. 8 1,188
International Nederlanden Groep Ne 26 1,025
Schweizerische Lebensversicherungs und
Rentenanstalt PC Sz 2 620
------
3,711
------
INVESTMENT COMPANIES - 5.2%
Chile Fund, Inc. Ch 24 570
First Australia Fund, Inc. Au 58 495
First Philippine Fund, Inc. Ph 41 560
Irish Investment Fund, Inc. Ir 46 690
Korea Fund, Inc. Ko 21 269
Pakistan Investment Fund Pa 53 272
Southern Africa Fund, Inc. SA 25 417
</TABLE>
7
<PAGE>
<TABLE>
Investment Portfolio/April 30, 1997
<CAPTION>
- --------------------------------------------------------------------------------
COMMON STOCKS - CONT. COUNTRY SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
FINANCE, INSURANCE & REAL ESTATE - CONT.
INVESTMENT COMPANIES - CONT.
Templeton Dragon Fund, Inc. (c) 63 $ 928
Thai Fund Th 28 419
The India Fund, Inc. Id 35 306
-------
4,926
-------
REAL ESTATE - 2.0%
Cheung Kong (Holdings) Ltd. HK 92 808
New World Development Co., Ltd. HK 197 1,137
-------
1,945
-------
- --------------------------------------------------------------------------------
MANUFACTURING - 38.7%
CHEMICALS & ALLIED PRODUCTS - 10.7%
BASF AG (a) G 36 1,401
Bristol-Myers Squibb Co. 15 956
DSM NV Ne 15 1,492
Hoechst AG (a) G 16 621
Johnson & Johnson 16 992
Merck & Co., Inc. 16 1,403
Merck KGaA G 23 919
Roche Holding AG Genusscheine Sz (d) 1,690
Sanofi SA Fr 8 705
-------
10,179
-------
ELECTRONIC & ELECTRICAL EQUIPMENT - 7.7%
Electrolux AB, Series B Sw 7 390
General Electric Co. 13 1,475
Intel Corp. 9 1,302
Matsushita Electric Industrial Ja. 87 1,390
Philips Electronics NV Ne 15 794
Sanyo Electric Company Ltd. Ja 221 850
Telefonaktiebolaget LM Ericsson Sw 34 1,126
-------
7,327
-------
FABRICATED METAL - 1.2%
Compagnie Generale d'Industrie
et de Participations Fr 2 677
Oriental Holdings Berhad Ma 60 456
-------
1,133
-------
FOOD & KINDRED PRODUCTS - 5.8%
Associated British Foods PLC UK 126 1,091
Fraser & Neave Ltd. Si 40 290
Nestle AG Sz 1 1,410
Tate & Lyle PLC UK 113 843
</TABLE>
8
<PAGE>
<TABLE>
Investment Portfolio/April 30, 1997
<CAPTION>
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
Unilever NV Ne 10 $1,936
-------
5,570
-------
MACHINERY & COMPUTER EQUIPMENT - 2.2%
Amada Co., Ltd. Ja 139 1,038
Hitachi Ltd. Ja 122 1,104
-------
2,142
-------
MEASURING & ANALYZING INSTRUMENTS - 1.8%
Fuji Photo Film Co., Ltd. Ja 39 1,488
Thomson-CSF Fr 9 262
-------
1,750
-------
PAPER PRODUCTS - 0.4%
Carter Holt Harvey Ltd. NZ 190 421
-------
PETROLEUM REFINING - 2.1%
OMV Handels AG Aus 8 873
Pennzoil Co. 22 1,093
-------
1,966
-------
PRIMARY METAL - 1.8%
ALFA SA de C.V. Mx 243 1,345
IPSCO, Inc. Ca 14 391
-------
1,736
-------
RUBBER & PLASTIC - 1.0%
Continental AG G 42 916
-------
TOBACCO PRODUCTS - 1.1%
B.A.T. Industries PLC UK 51 435
Hanson Trust PLC UK 63 303
Sampoerna International Finance Co. In 83 334
-------
1,072
-------
TRANSPORTATION EQUIPMENT - 2.9%
Chrysler Corp. 33 981
Fiat Auto SPA Ord It 199 656
Honda Motor Co. Ltd. Ja 35 1,085
-------
2,722
-------
- --------------------------------------------------------------------------------
MINING & ENERGY - 3.7%
CRUDE PETROLEUM & NATURAL GAS - 0.6%
Ranger Oil Ltd. Ca 55 551
-------
METAL MINING - 0.8%
Trelleborg AB, Class B Shares Sw 52 806
-------
</TABLE>
9
<PAGE>
<TABLE>
Investment Portfolio/April 30, 1997
<CAPTION>
- --------------------------------------------------------------------------------
COMMON STOCKS - CONT. COUNTRY SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
MINING & ENERGY - CONT.
NONMETALLIC, EXCEPT FUELS - 0.2%
Potash Corp. of Saskatchewan, Inc. Ca 3 $ 193
-------
OIL & GAS EXTRACTION - 1.5%
Elf Gabon SA Fr 4 1,085
Santos Ltd. Au 85 333
-------
1,418
-------
OIL & GAS FIELD SERVICES - 0.6%
Petroleum Geo-Services A/S (b) No 14 558
-------
- --------------------------------------------------------------------------------
RETAIL TRADE - 5.7%
APPAREL & ACCESSORY STORES - 1.2%
Aoyama Trading Co., Ltd. Ja 22 623
Hennes & Mauritz AB Sw 4 564
-------
1,187
-------
FOOD STORES - 2.4%
Loblaw Companies Ltd. Ca 25 308
Safeway, Inc. (b) 44 1,945
-------
2,253
-------
GENERAL MERCHANDISE STORES - 1.3%
Jardine Strategic Holdings Ltd. Si 90 304
Sears, Roebuck & Co. 20 941
-------
1,245
-------
MISCELLANEOUS RETAIL - 0.8%
Imasco Ltd. Ca 29 795
-------
- --------------------------------------------------------------------------------
SERVICES - 5.9%
BUSINESS SERVICES - 0.5%
SAP AG (a) G 2 437
-------
COMPUTER RELATED SERVICES - 0.8%
Cadence Design Systems, Inc. (b) 23 730
-------
COMPUTER SOFTWARE - 1.2%
Microsoft Corp. (b) 9 1,106
-------
ENGINEERING, ACCOUNTING, RESEARCH & MANAGEMENT - 0.3%
Paychex, Inc. 7 318
-------
HEALTH SERVICES - 0.6%
Astra B Fria Sw 2 87
</TABLE>
10
<PAGE>
<TABLE>
Investment Portfolio/April 30, 1997
<CAPTION>
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
Novartis (Reg) Sz (d) $ 463
-------
550
-------
OTHER SERVICES - 0.8%
VEBA AG (a) G 15 791
-------
PERSONAL SERVICES - 1.7%
Service Corporation International 48 1,654
-------
- --------------------------------------------------------------------------------
TRANSPORTATION, COMMUNICATION, ELECTRIC,
GAS & SANITARY SERVICES - 11.5%
AIR TRANSPORTATION - 0.8%
British Airways PLC UK 17 190
Lufthansa AG (a) G 40 551
-------
741
-------
COMMUNICATIONS - 8.2%
British Telecommunications PLC UK 103 757
Hong Kong Telecommunications Ltd. HK 244 419
Nokia AB Fi 10 617
PT Indosat ADR (b) In 13 355
Telecom Italia SPA It 377 997
Telecomunicacoes Brasileiras SA ADR Bz 8 918
Tele Danmark A/S, Series B (b) De 3 149
Telefonica de Argentina SA ADR Ar 25 828
Telefonica de Espana Sp 21 525
Telefonos de Mexico SA - Series A Mx 295 612
Telus Corp. Ca 62 892
Vodafone Group (b) UK 175 783
-------
7,852
-------
ELECTRIC, GAS & SANITARY SERVICES - 0.2%
Westcoast Energy, Inc. Ca 13 217
-------
ELECTRIC SERVICES - 1.8%
OesterreichischAuslektrizitaetswirtschafts AG Aus 7 468
Union Electrica Fenosa SA Sp 145 1,207
-------
1,675
-------
SANITARY SERVICES - 0.5%
United Utilities PLC UK 40 439
-------
- --------------------------------------------------------------------------------
WHOLESALE TRADE - 1.4%
NONDURABLE GOODS
Gillette Co. 16 1,343
-------
</TABLE>
11
<PAGE>
<TABLE>
Investment Portfolio/April 30, 1997
<CAPTION>
- --------------------------------------------------------------------------------
<S> <C> <C>
TOTAL INVESTMENTS (cost of $73,175)(e) $86,105
-------
SHORT-TERM OBLIGATIONS - 9.3% PAR
- --------------------------------------------------------------------------------
Repurchase agreement with Chase Securities, Inc.,
dated 04/30/97, due 05/01/97 at 5.340%,
collateralized by U.S. Treasury notes with various
maturities to 2016, market value $9,099
(repurchase proceeds $8,846) $8,845 8,845
-------
FORWARD CURRENCY CONTRACTS - 0.1% (f) 76
- --------------------------------------------------------------------------------
OTHER ASSETS & LIABILITIES, NET - 0.4% 385
- --------------------------------------------------------------------------------
NET ASSETS - 100.0% $95,411
-------
NOTES TO INVESTMENT PORTFOLIO:
- --------------------------------------------------------------------------------
(a) These securities, or a portion thereof, with a total market value of $4,689
are being used to collateralize the open forward currency exchange
contract.
(b) Non-income producing.
(c) This security is subject to the risks of the various countries in which the
issuer is investing. (See Notes to Financial Statements: Note 4. - Other)
(d) Rounds to less than one.
(e) Cost for federal income tax purposes is the same.
(f) As of April 30, 1997, the Fund had entered into the following forward
currency exchange contract:
<CAPTION>
Net Unrealized
Contracts to In Exchange Settlement Appreciation
Deliver For Date (U.S.$)
------------ ------------- --------- --------------
<S> <C> <C> <C>
DM 6,787,520 US$ 4,000,000 05/09/97 $ 76
</TABLE>
12
<PAGE>
<TABLE>
Investment Portfolio/April 30, 1997
- --------------------------------------------------------------------------------
<CAPTION>
Summary of Securities by Country Country Value % of Total
-------------------------------------------------------------------------------
<S> <C> <C> <C>
United States $18,385 21.4
Japan Ja 7,578 8.8
Netherlands Ne 6,626 7.7
Germany G 6,524 7.6
United Kingdom UK 6,505 7.5
Switzerland Sz 4,183 4.9
Sweden Sw 3,948 4.6
France Fr 3,607 4.2
Canada Ca 3,563 4.1
Hong Kong HK 3,498 4.1
Spain Sp 3,245 3.8
Italy It 2,374 2.7
Australia Au 2,254 2.6
Mexico Mx 1,957 2.3
Austria Aus 1,341 1.5
Singapore Si 1,010 1.2
Norway No 998 1.1
Multinational (c) 928 1.1
Brazil Bz 918 1.1
Argentina Ar 828 1.0
Ireland Ir 690 0.8
Indonesia In 689 0.8
Finland Fi 617 0.7
Chile Ch 570 0.7
Philippines Ph 560 0.6
Malaysia Ma 456 0.5
New Zealand NZ 421 0.5
Thailand Th 419 0.5
South Africa SA 417 0.5
India Id 306 0.3
Pakistan Pa 272 0.3
Korea Ko 269 0.3
Denmark De 149 0.2
------- -----
$86,105 100.0
======= =====
</TABLE>
Certain securities are listed by country of underlying exposure but may trade
predominantly on other exchanges.
Acronym Name
------- ----
ADR American Depository Receipt
See notes to financial statements.
13
<PAGE>
STATEMENT OF ASSETS & LIABILITIES
APRIL 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
(in thousands except for per share amounts and footnotes)
<S> <C> <C>
ASSETS
Investments at value (cost $73,175) $86,105
Short-term obligations 8,845
-------
94,950
Cash held in foreign banks (cost $48) $ 48
Receivable for:
Dividends 187
Fund shares sold 169
Foreign tax reclaims 52
Interest 1
Unrealized appreciation on forward
currency exchange contracts 76
Deferred organization expenses 1
Other 7 541
---- -------
Total Assets 95,491
LIABILITIES
Payable for:
Fund shares repurchased 78
Accrued:
Deferred Trustees fees 2
----
Total Liabilities 80
-------
NET ASSETS $95,411
=======
Net asset value & redemption price per share -
Class A ($26,937/2,032) $ 13.26
-------
Maximum offering price per share - Class A
($13.26/0.9425) $ 14.07(a)
-------
Net asset value & offering price per share -
Class B ($68,474/5,220) $ 13.12(b)
-------
COMPOSITION OF NET ASSETS
Capital paid in $79,276
Overdistributed net investment income (66)
Accumulated net realized gain 3,211
Net unrealized appreciation on:
Investments 12,930
Foreign currency transactions 60
-------
$95,411
=======
</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.
14
<PAGE>
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED APRIL 30, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
(in thousands)
<S> <C> <C>
INVESTMENT INCOME
Dividends $ 820
Interest 229
------
Total investment income (net of nonrebatable
foreign taxes withheld at source which
amounted to $71) 1,049
EXPENSES
Management fee $ 343
Service fee 114
Distribution fee - Class B 256
Transfer agent 146
Bookkeeping fee 21
Trustees fee 7
Custodian fee 29
Audit fee 18
Legal fee 3
Registration fee 15
Reports to shareholders 5
Amortization of deferred
organization expenses 4
Other 6 967
----- ------
Net Investment Income 82
------
NET REALIZED & UNREALIZED GAIN (LOSS) ON PORTFOLIO POSITIONS
Net realized gain (loss) on:
Investments 3,232
Foreign currency transactions (42)
-----
Net Realized Gain 3,190
Net unrealized appreciation
during the period on:
Investments 4,852
Foreign currency transactions 70
-----
Net Unrealized Appreciation 4,922
------
Net Gain 8,112
------
Net Increase in Net Assets from Operations $8,194
======
</TABLE>
See notes to financial statements.
15
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<CAPTION>
(Unaudited)
Six months Year ended
(in thousands) ended April October 31
----------- ----------
INCREASE (DECREASE) IN NET ASSETS 1997 1996
<S> <C> <C>
Operations:
Net investment income $ 82 $ 276
Net realized gain 3,190 9,011
Net unrealized appreciation 4,922 881
------- -------
Net Increase from Operations 8,194 10,168
Distributions:
From net investment income - Class A (22) (105)
In excess of net investment income - Class A -- (37)
From net realized gains - Class A (2,143) (618)
From net investment income - Class B -- (133)
In excess of net investment income - Class B -- (46)
From net realized gains - Class B (6,988) (3,141)
------- -------
(959) 6,088
------- -------
Fund Share Transactions:
Receipts for shares sold - Class A 8,325 8,563
Value of distributions reinvested - Class A 2,034 713
Cost of shares repurchased - Class A (2,390) (2,848)
------- -------
7,969 6,428
------- -------
Receipts for shares sold - Class B 8,386 13,370
Value of distributions reinvested - Class B 6,378 3,088
Cost of shares repurchased - Class B (11,169) (14,800)
------- -------
3,595 1,658
------- -------
Net Increase from
Fund Share Transactions 11,564 8,086
------- -------
Total Increase 10,605 14,174
NET ASSETS
Beginning of period 84,806 70,632
------- -------
End of period (net of overdistributed
net investment income of $66 and
$75, respectively) $95,411 $84,806
======= =======
NUMBER OF FUND SHARES
Sold - Class A 633 658
Issued for distributions reinvested - Class A 161 59
Repurchased - Class A (182) (221)
------- -------
612 496
------- -------
Sold - Class B 642 1,042
Issued for distributions reinvested - Class B 509 257
Repurchased - Class B (852) (1,151)
------- -------
299 148
------- -------
</TABLE>
See notes to financial statements.
16
<PAGE>
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1997 (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 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's investment objective is to
seek long-term growth by investing primarily in global equities. 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 consistently 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.
17
<PAGE>
Notes to Financial Statements/April 30, 1997
- --------------------------------------------------------------------------------
NOTE 2. ACCOUNTING POLICIES - CONT.
- --------------------------------------------------------------------------------
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 average shares outstanding during the
period. In addition, Class B net investment income per share data 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 (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.
18
<PAGE>
Notes to Financial Statements/April 30, 1997
- --------------------------------------------------------------------------------
FORWARD CURRENCY CONTRACTS: The Fund may enter into forward currency contracts
to purchase or sell foreign currencies at predetermined exchange rates in
connection with the settlement of purchases and sales of securities. The Fund
may also enter into forward currency contracts to hedge certain other foreign
currency denominated assets. The contracts are used to minimize the exposure to
foreign exchange rate fluctuations during the period between trade and
settlement date of the contracts. All contracts are marked-to-market daily,
resulting in unrealized gains (losses) which become realized at the time the
forward currency contracts are closed or mature. Realized and unrealized gains
(losses) arising from such transactions are included in net realized and
unrealized gains (losses) on foreign currency transactions. 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'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.
TRANSFER AGENT: Colonial Investors Service Center, Inc. (the Transfer Agent), an
affiliate of the Adviser, provides shareholder services for a monthly fee equal
to 0.25% annually of the Fund's average net assets and receives reimbursement
for certain out-of-pocket expenses.
19
<PAGE>
Notes to Financial Statements/April 30, 1997
- --------------------------------------------------------------------------------
NOTE 3. FEES AND COMPENSATION PAID TO AFFILIATES - CONT.
- --------------------------------------------------------------------------------
UNDERWRITING DISCOUNTS, SERVICE AND DISTRIBUTION FEES: Colonial Investment
Services, Inc. (the Distributor), an affiliate of the Adviser, is the Fund's
principal underwriter. During the six months ended April 30, 1997, the Fund has
been advised that the Distributor retained net underwriting discounts of $5,977
on sales of the Fund's Class A shares and received contingent deferred sales
charges (CDSC) of $50,850 on Class B share redemptions.
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 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 waive fees and
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, 1997, 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, 1997, purchases and
sales of investments, other than short-term obligations, were $27,810,579 and
$26,514,468, respectively.
Unrealized appreciation (depreciation) at April 30, 1997, based on cost of
investments for both financial statement and federal income tax purposes was:
<TABLE>
<CAPTION>
<S> <C>
Gross unrealized appreciation $14,892,839
Gross unrealized depreciation (1,962,782)
-----------
Net unrealized appreciation $12,930,057
===========
</TABLE>
20
<PAGE>
Notes to Financial Statements/April 30, 1997
- --------------------------------------------------------------------------------
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, 1997.
21
<PAGE>
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 Year ended October 31
--------------------- ---------------------
1997 1996
Class A Class B Class A Class B
------- ------- ------- -------
<S> <C> <C> <C> <C>
Net asset value -
Beginning of period $13.440 $13.350 $12.450 $12.390
------- ------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (a)(b) 0.048 (0.001) 0.123 0.027
Net realized and unrealized gain (b) 1.230 1.214 1.664 1.634
------- ------- ------- -------
Total from Investment Operations 1.278 1.213 1.787 1.661
------- ------- ------- -------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.015) ---- (0.098) (0.027)
In excess of net investment income ---- ---- (0.035) (0.010)
From net realized gains (1.443) (1.443) (0.664) (0.664)
------- ------- ------- -------
Total Distributions Declared to
Shareholders (1.458) (1.443) (0.797) (0.701)
------- ------- ------- -------
Net asset value - End of period $13.260 $13.120 $13.440 $13.350
======= ======= ======= =======
Total return (c) 10.05%(d) 9.58%(d) 15.10% 14.04%
======= ======= ======= =======
RATIOS TO AVERAGE NET ASSETS
Expenses 1.55%(f)(g) 2.30%(f)(g) 1.58%(f) 2.33%(f)
Fees and expenses waived or
borne by the Adviser ---- ---- ---- ----
Net investment income 0.74%(f)(g) (0.01)%(f)(g) 0.96%(f) 0.21%(f)
Portfolio turnover 32%(d) 32%(d) 125% 125%
Average commission rate (h) $ 0.0282 $0.0282 $0.0261 $0.0261
Net assets at end of period (000) $ 26,937 $68,474 $19,092 $65,714
</TABLE>
(a) Net of fees and expenses waived or borne by the Adviser which amounted to
---- ---- ---- ----
(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) Not annualized.
(e) Had the Adviser not waived or reimbursed a portion of expenses, total
return would have been reduced.
(f) The benefits derived from custody credits and directed brokerage
arrangements had no impact. Prior years' ratios are net of benefits
received, if any.
22
<PAGE>
FINANCIAL HIGHLIGHTS - CONT
<TABLE>
<CAPTION>
Year ended October 31
----------------------------------------------
1995 1994
Class A Class B Class A Class B
------- ------- ------- -------
<S> <C> <C> <C>
$12.690 $12.630 $11.760 $11.720
------- ------- ------- -------
0.167 0.076 0.170 0.077
0.735 0.735 0.969 0.959
------- ------- ------- -------
0.902 0.811 1.139 1.036
------- ------- ------- -------
(0.198) (0.107) (0.166) (0.083)
---- ---- ---- ----
(0.944) (0.944) (0.043) (0.043)
------- ------- ------- -------
(1.142) (1.051) (0.209) (0.126)
------- ------- ------- -------
$12.450 $12.390 $12.690 $12.630
======= ======= ======= =======
8.23%(e) 7.43%(e) 9.76%(e) 8.88%(e)
======= ======= ======= =======
1.36%(f) 2.11%(f) 1.25% 2.00%
0.26%(f) 0.26%(f) 0.36% 0.36%
1.40%(f) 0.65%(f) 1.38% 0.63%
74% 74% 52% 52%
---- ---- ---- ----
$11,501 $59,131 $10,525 $63,139
$ 0.031 $ 0.031 $ 0.045 $ 0.045
</TABLE>
(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.
23
<PAGE>
FINANCIAL HIGHLIGHTS - CONT.
<TABLE>
<CAPTION>
Selected data for a share of each class outstanding throughout each period
are as follows:
Year ended Period ended
October 31 October 31
--------------------- ---------------------
1993 1992(c)
Class A Class B Class A Class B
------- ------- ------- -------
<S> <C> <C> <C> <C>
Net asset value -
Beginning of period $ 9.340 $ 9.310 $10.000 $10.000
------- ------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (a)(b) 0.182 0.104 0.088 0.059
Net realized and
unrealized gain (loss)(b) 2.461 2.447 (0.748) (0.749)
------- ------- ------- -------
Total from Investment Operations 2.643 2.551 (0.660) (0.690)
------- ------- ------- -------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.223) (0.141) ---- ----
------- ------- ------- -------
Total Distributions
Declared to Shareholder (0.223) (0.141) ---- ----
------- ------- ------- -------
Net asset value - End of period $11.760 $11.720 $ 9.340 $ 9.310
======= ======= ======= =======
Total return (d)(e) 28.77% 27.70% (6.59)%(f) $ (6.90)%(f)
======= ======= ======= =======
RATIOS TO AVERAGE NET ASSETS
Expenses 1.25% 2.00% 1.25%(g) 2.00%(g)
Interest expense 0.01% 0.01% ---- ----
Fees and expenses waived or borne by
the Adviser 0.51% 0.51% 0.67%(g) 0.67%(g)
Net investment income 1.75% 1.00% 2.25%(g) 1.50%(g)
Portfolio turnover 58% 58% 14%(g) 14%(g)
Net assets at end of period(000) $ 1,769 $40,837 $ 164 $32,099
</TABLE>
(a) Net of fees and expenses waived or borne by the Adviser which amounted to
$ 0.053 $ 0.053 $ 0.026 $ 0.026
(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.
(e) Had the Adviser not waived or reimbursed a portion of expenses, total
return would have been reduced.
(f) Not annualized.
(g) Annualized.
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:
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 [*]
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 7:00 pm ET. Transactions received after the close of the New York Stock
Exchange will receive the next business day's closing price.
LITERATURE - 1-800-426-3750
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 Colonial at
1-800-426-3750 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>
[LOGO]COLONIAL
MUTUAL FUNDS
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(C) 1997
A Liberty Financial Company (NYSE: L)
One Financial Center, Boston, Massachusetts 02111-2621, 617-426-3750
GE-03/661D-0497 M (6/97)
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