<PAGE>
--------------------------------
- ------------------------ ------------------------
[COLONIAL FLAG LOGO]
--------------------------------
COLONIAL
INTERNATIONAL
FUND FOR GROWTH
--------------------------------
SEMIANNUAL REPORT
APRIL 30, 1997
--------------------------------
[PICTURE OF WORLD CURRENCIES]
--------------------------------
NOT FDIC- MAY LOSE VALUE
INSURED NO BANK GUARANTEE
--------------------------------
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<PAGE>
- --------------------------------------------------------------------------------
COLONIAL INTERNATIONAL FUND FOR GROWTH
HIGHLIGHTS
NOVEMBER 1, 1996 - APRIL 30, 1997
INVESTMENT OBJECTIVE: Colonial International Fund for Growth seeks long-term
growth by investing primarily in non U.S. equities.
THE FUND IS DESIGNED TO OFFER:
X Long-term growth potential
X Worldwide diversification
X Experienced professional management
PORTFOLIO MANAGEMENT COMMENTARY: "During the period the Fund's performance began
to better reflect our value-oriented management style. Returns improved over
prior periods as portfolio turnover related to the Fund's restructuring was
reduced, decreasing costly trading activity that detracted from total return.
We are confident that the Fund is now well positioned to take advantage of a
growing global economy."
-- Bruno Bertocci
<TABLE>
COLONIAL INTERNATIONAL FUND FOR GROWTH PERFORMANCE
<CAPTION>
- --------------------------------------------------------------------------------
CLASS A CLASS B CLASS D*
<S> <C> <C> <C>
Inception dates 12/1/93 12/1/93 7/1/94
- --------------------------------------------------------------------------------
Six-month distributions declared $0.735 $0.646 $0.666
per share
- --------------------------------------------------------------------------------
Six-month total returns, assuming 4.14% 3.70% 3.59%
reinvestment of all distributions
and no sales charge or contingent
deferred sales charge (CDSC)
- --------------------------------------------------------------------------------
Net asset value per share on 4/30/97 $9.93 $9.75 $9.77
- --------------------------------------------------------------------------------
</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>
<CAPTION>
TOP FIVE COUNTRIES** TOP FIVE HOLDINGS**
(as of 4/30/97) (as of 4/30/97)
- ---------------------------------------- --------------------------------
<S> <C>
1. Inchcape ...................... 2.0% 1. Japan ................. 19.5%
2. SSAB Svenskt Stal Ab .......... 1.9% 2. United Kingdom ........ 7.7%
3. Fortis Amev NV ................ 1.9% 3. Korea ................. 5.8%
4. Jusco Co. Ltd. ................ 1.7% 4. France ................ 5.6%
5. Avesta Sheffield .............. 1.7% 5. Germany ............... 5.6%
</TABLE>
**Holdings and country breakdowns are calculated as a percent of total net
assets. Because the Fund is actively managed, there can be no guarantee that it
will continue to hold these securities or invest in these countries.
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2
<PAGE>
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PRESIDENT'S MESSAGE
TO FUND SHAREHOLDERS
I am pleased to present the semiannual report for
Colonial International Fund for Growth. This report
reflects on the investment environment for the six
months ended April 30, 1997 and on the performance of
your Fund. [PICTURE OF
Harold W. Cogger]
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. Revived export activity and
improved political stability in the Pacific Rim nations should result in an
acceleration of earnings growth. As global standards of living rise, consumers
will increase their purchases of locally produced goods and services. A number
of the stocks held by the Fund represent companies that will benefit from this
trend. Many of these foreign stocks appear to be undervalued, particularly those
in emerging markets and smaller companies.
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. Over the 10 year period
ending April 30, 1997 many international markets have outperformed the U.S.
market. 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 could 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 value-oriented 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
BRUNO BERTOCCI and DAVID HARRIS are portfolio co-managers of Colonial
International Fund for Growth and are Vice Presidents of Colonial Management
Associates, Inc. They are also investment management principals with Stein Roe
Global Capital Management, a division of Stein Roe & Farnham, Inc.
INTERNATIONAL STOCKS OFFER GOOD VALUES DESPITE LAGGING MARKET
For the eleventh straight quarter, gains in international stock prices were
smaller than those for their U.S. stock counterparts. This is due largely to the
strength of the U.S. stock market -- strong corporate earnings growth, low
inflation and high levels of investor enthusiasm have kept U.S. stock prices at
record levels. We believe international stocks are more reasonably priced than
U.S. stocks and offer investors greater potential price gains over the next
several years. Also, international economic conditions are improving. Lower
interest rates in Europe are helping to stimulate those economies and the
Japanese market is stabilizing amid signs of an economic pick-up.
INVESTMENT STYLE EMPHASIZES UNDERVALUED STOCKS
Identifying undervalued stocks is the cornerstone of our investment philosophy.
Our approach is value-oriented -- each stock that we buy must be attractively
priced, offer long-term growth potential and possess a strong financial and
operating position that will increase its value over time. These criteria are
often met in emerging market and smaller company stocks.
Within emerging markets, companies in Southeast Asia and Latin America are
particularly appealing. These nations will play a large role in the expanding
global economy. As regional income levels increase, residents tend to upgrade
their lifestyles. Companies that produce goods and services for these consumers
should benefit. Industries that fit this definition include telecommunications
and cellular service providers, retailers and developers of both residential and
commercial property. These stocks did very well during the first part of 1997
after declining in late 1996.
We tend to favor smaller companies that are not closely followed by the stock
analyst community. Because less attention is paid to these stocks by analysts
and
- --------------------------------------------------------------------------------
4
<PAGE>
- --------------------------------------------------------------------------------
larger mutual funds, they are less likely to be fairly priced. We like to do our
own research and buy stocks before the "pack" gets interested in them and sell
before investor excitement peaks. A good example of this strategy involves the
recent sale of several Hong Kong property development stocks, specifically HKR
and New World Development. We purchased both of these holdings during a period
of uncertainty surrounding Hong Kong's return to Chinese sovereignty. Lower
interest rates in Hong Kong and increased confidence in the political situation
boosted retail property prices significantly. Heightened investor enthusiasm
moved our stocks from under- to overvalued. We sold both holdings at a
substantial profit.
POSITIVE OUTLOOK FOR INTERNATIONAL STOCKS
We firmly believe that the growing global economy provides for excellent growth
prospects. We think that U.S. market values will eventually peak. As that
occurs, investor interest should turn to more reasonably valued international
markets. The Fund's fully invested portfolio of modestly valued stocks is well
positioned to offer shareholders an excellent opportunity to participate in a
dynamic global expansion.
- --------------------------------------------------------------------------------
5
<PAGE>
- --------------------------------------------------------------------------------
COLONIAL INTERNATIONAL FUND FOR GROWTH'S INVESTMENT PERFORMANCE VS.
THE MORGAN STANLEY CAPITAL INTERNATIONAL EAFE (GDP) INDEX
Change in Value of $10,000 from 12/1/93 - 4/30/97
CLASS A SHARES
Based on NAV and MOP
[Line Graph]
<TABLE>
CIFFG CLASS A SHARES
- --------------------------------------------------------------------------------
<CAPTION>
- --------------------------------------------------------------------------------
AS OF DATE NAV MOP MSCI EAFE (GDP) INDEX
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
11/30/93 10000 9425 $10,000
12/31/93 10530 9924.525 10,703
1/31/94 10990 10358.08 11,522
2/28/94 10670 10056.47 11,459
3/31/94 10040 9462.7 11,294
4/30/94 10270 9679.475 11,865
5/31/94 10270 9679.475 11,592
6/30/94 10060 9481.55 11,587
7/31/94 10350 9754.875 11,856
8/31/94 10690 10075.33 12,057
9/30/94 10350 9754.875 11,633
10/31/94 10370 9773.725 11,987
11/30/94 9900 9330.75 11,452
12/31/97 9730 9170.525 11,539
1/31/95 9100 8576.75 11,244
2/28/95 8950 8435 11,231
3/31/95 9010 8491.925 11,740
4/30/95 9240 8708.7 12,264
5/31/95 9290 8755.825 12,146
6/30/95 9220 8689.85 12,010
7/31/95 9770 9208.225 12,795
8/31/95 9780 9217.65 12,261
9/30/95 9890 9321.325 12,406
10/31/95 9760 9198.8 12,047
11/30/95 9850 9283.625 12,301
12/31/95 10100 9519.25 12,827
1/31/96 10070 9490.975 12,990
2/29/96 10040 9462.7 13,029
10/31/96 10260 9670.05 13,335
4/30/96 10740 10122.45 13,613
5/31/96 10650 10037.63 13,412
6/30/96 10730 10113.03 13,517
7/31/96 10280 9688.9 13,129
8/31/96 10410 9811.425 13,122
9/30/96 10520 9915.1 13,482
10/31/96 10260 9670.05 13,335
11/30/96 10660 10047.05 13,905
12/31/96 10523.22 9918.135 13,806
1/31/97 10609.3 9999.264 13,545
2/28/97 10738.42 10120.96 13,640
3/31/97 10716.9 10100.68 13,900
4/30/97 10684.62 10070.25 $13,866
</TABLE>
CLASS B SHARES
Based on NAV and w/CDSC
[Line Graph]
<TABLE>
CIFFG CLASS B SHARES
- --------------------------------------------------------------------------------
<CAPTION>
AS OF DATE NAV MOP MSCI EAFE GDP WT IX ND
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
11/30/93 10000 10000 $10,O00
12/31/93 10530 10530 10,703
11/31/94 10980 10980 11,522
2/28/94 10650 10650 11,459
3/31/94 10020 10020 11,294
4/30/94 10240 10240 11,865
5/31/94 10230 10230 11,592
6/30/94 10020 10020 11,587
7/31/94 10290 10290 11,856
8/31/94 10630 10630 12,057
9/30/94 10280 10280 11,633
10/31/94 10300 10300 11,987
11/30/94 9830 9830 11,452
12/31/94 9650 9650 11,539
1/31/95 9020 9020 11,244
2/28/95 8860 8860 11,231
3/31/95 8920 8920 11,740
4/30/95 9140 9140 12,264
5/31/95 9190 9190 12,146
6/30/95 9120 9120 12,010
7/31/95 9650 9650 12,795
8/31/95 9650 9650 12,261
9/30/95 9760 9760 12,406
10/31/95 9620 9620 12,047
11/30/95 9710 9710 12,301
12/31/95 9940 9940 12,827
1/31/96 9900 9900 12,990
2/29/96 9870 9870 13,029
3/31/96 10080 10080 13,202
4/30/96 10540 10540 13,613
5/31/96 10450 10450 13,412
6/30/96 10520 10520 13,517
7/31/96 10080 10080 13,129
8/31/96 10200 10200 13,122
9/30/96 10300 10300 13,482
10/31/96 10040 10040 13,335
11/30/96 10430 10430 13,905
12/31/96 10283.44 10283.44 13,806
1/31/97 10368.87 10368.87 13,545
2/28/97 10486.33 10486.33 13,640
3/31/97 10454.3 10454.3 13,900
4/30/97 10411.58 10119.08 $13,866
</TABLE>
A $10,000 investment in Class D shares made on July 1, 1994 (inception), at net
asset value (NAV), would have been valued at $10,390 on April 30, 1997. The same
investment after deducting the applicable contingent deferred sales charge
(CDSC) would have been valued at $10,286 on April 30, 1997.
The Morgan Stanley Capital International EAFE (GDP) Index is an unmanaged index
that tracks the performance of international 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 SHARES CLASS B SHARES CLASS D SHARES
INCEPTION 12/1/93 12/1/93 7/1/94
NAV MOP NAV w/CDSC NAV MOP w/CDSC
- -----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1 YEAR 4.45% (1.55)% 3.71% (1.14)% 3.60% 1.60%
- -----------------------------------------------------------------------------------
SINCE INCEPTION 2.10 0.30 1.34 0.48 1.55 1.18
- -----------------------------------------------------------------------------------
</TABLE>
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 charges of 5% for one year and 3% since inception for Class B shares
and 1% for one year for Class D shares. Performance for different share classes
will vary based on differences in sales charges and fees associated with each
class.
- --------------------------------------------------------------------------------
6
<PAGE>
<TABLE>
INVESTMENT PORTFOLIO
APRIL 30, 1997 (UNAUDITED, IN THOUSANDS)
<CAPTION>
COMMON STOCKS - 94.8% COUNTRY SHARES VALUE
- -----------------------------------------------------------------------------------
<S> <C> <C> <C>
AGRICULTURE, FORESTRY & FISHING - 0.3%
AGRICULTURAL SERVICES - 0.3%
PT Chareon Pokphand Indonesia In 250 $ 255
------
- -----------------------------------------------------------------------------------
CONSTRUCTION - 2.5%
BUILDING CONSTRUCTION - 0.4%
Property Perfect Public Co., Ltd. Th 410 334
------
HEAVY CONSTRUCTION-NON BUILDING CONSTRUCTION - 2.1%
Compagnie Generale des Eaux Fr 9 1,312
Kaneshita Construction Ja 59 416
Sino Thai Engineering & Construction
Public Co., Ltd. Th 114 130
------
1,858
------
- -----------------------------------------------------------------------------------
FINANCE, INSURANCE & REAL ESTATE - 18.1%
DEPOSITORY INSTITUTIONS - 6.0%
Banco Latinoamericano
de Exportaciones, SA Po 31 1,431
Banca Popolare di Milano It 215 1,057
Generale de Banque SA Be 2 810
Generale de Banque VVPR(a) Be (b) (b)
International Bank of Asia HK 900 511
Korea Exchange Bank Ko 113 732
Siam Commercial Bank Th 110 644
------
5,185
------
HOLDING COMPANIES - 1.9%
Fortis Amev NV Ne 43 1,629
------
INSURANCE CARRIERS - 1.3%
Reinsurance Australia Corp. Au 363 1,122
------
INVESTMENT COMPANIES - 3.1%
Fleming Russia Securities Fund(a) Ru 65 1,105
Japan OTC Equity Fund, Inc.(a) Ja 1 459
World Equity Benchmark Share - Japan(a) Ja 89 1,085
------
2,649
------
NONDEPOSITORY CREDIT INSTITUTIONS - 1.5%
Promise Co., Ltd. Ja 32 1,322
------
</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.
REAL ESTATE - 3.0%
Diligentia AB(a) Sw 90 $ 952
IOI Properties Berhad Ma 130 311
Kawasan Industries Jababeka In 747 906
Tian An China Investment HK 3,782 420
------
2,589
------
SECURITY BROKERS & DEALERS - 1.3%
Kokusai Securities Co., Ltd. Ja 80 636
L.G. Securities(a) Ko 64 517
------
1,153
------
- -----------------------------------------------------------------------------------
MANUFACTURING - 40.0%
APPAREL - 1.1%
Tokyo Style Ja 77 927
------
CHEMICALS & ALLIED PRODUCTS - 6.1%
Indian Petrochemicals, Ltd. In 54 695
Kemira Oy Fi 81 755
Norsk Hydro AS No 28 1,365
PT Evershine Textile Industry In 1,442 504
SmithKline Beecham PLC UK 85 1,370
Yizheng Chemical Fibre Co., Ltd. HK 2,820 553
------
5,242
------
ELECTRONIC & ELECTRICAL EQUIPMENT - 8.0%
Alcatel Alsthom Fr 10 1,140
Koor Industries Ltd. ADR Is 29 504
LG Electronics Ko 41 491
Matsushita Electric Industrial Co. Ja 82 1,310
Moulinex(a) Fr 48 1,110
Murata Manufacturing Co., Ltd. Ja 35 1,303
Samsung Electronics GDS Common(a) Ko 2 117
Samsung Electronics Old Preferred GDS Ko 42 974
------
6,949
------
FOOD & KINDRED PRODUCTS - 0.8%
Perdigao SA Comercio e Industria Br 245,000 507
Vitasoy International Holdings Ltd. HK 567 205
------
712
------
MACHINERY & COMPUTER EQUIPMENT - 7.1%
AGIV-AG G 58 1,076
Bucher Holding Sz (b) 426
Canon, Inc. Ja 56 1,326
</TABLE>
8
<PAGE>
<TABLE>
Investment Portfolio/April 30, 1997
<CAPTION>
- -----------------------------------------------------------------------------------
<S> <C> <C> <C>
Hitachi Ltd. Ja 130 $1,176
Mannesmann AG G 3 1,196
Mori Seiki Ja 67 970
------
6,170
------
PAPER PRODUCTS - 4.2%
Enso-Oy Fi 178 1,468
Metro Pacific Corp. Ph 3,300 763
Metsa-Serla Oy Fi 189 1,421
------
3,652
------
PETROLEUM REFINING - 4.0%
Neste Fi 42 1,018
YPF Sociedad Anonima ADR Ar 53 1,470
Yukong Ltd. Ko 57 1,007
------
3,495
------
PRIMARY METAL - 5.5%
Acerinox SA Sp 8 1,170
Avesta Sheffield AB(a) Sw 149 1,481
SSAB Svenskt Stal AB Sw 94 1,672
TransTec PLC UK 233 406
------
4,729
------
RUBBER & PLASTIC - 0.3%
World Houseware Holdings Ltd. HK 3,086 299
------
STONE, CLAY, GLASS & CONCRETE - 1.0%
Companion Building Materials Ltd. HK 4,800 409
N.V. Koninklijke Sphinx Gustavsberg Ne 50 484
------
893
------
TEXTILE MILL PRODUCTS - 0.5%
Coteminas Br 1,100 461
------
TRANSPORTATION EQUIPMENT - 1.4%
Suzuki Motor Co., Ltd. Ja 117 1,243
------
- -----------------------------------------------------------------------------------
MINING & ENERGY - 4.9%
COAL MINING - 1.4%
Samchully Co. Ko 15 1,227
------
</TABLE>
9
<PAGE>
<TABLE>
Investment Portfolio/April 30, 1997
<CAPTION>
- -----------------------------------------------------------------------------------
COMMON STOCKS - CONT. COUNTRY SHARES VALUE
- -----------------------------------------------------------------------------------
<S> <C> <C> <C>
MINING & ENERGY - CONT.
CRUDE PETROLEUM & NATURAL GAS - 2.9%
Compagnie Francaise de Petroleum
Total B Fr 15 $1,282
Saga Petroleum No 72 1,254
------
2,536
------
METAL MINING - 0.6%
Southern Peru Copper $ 26 458
------
- -----------------------------------------------------------------------------------
RETAIL TRADE - 8.2%
AUTO DEALERS & GAS STATIONS - 2.0%
Inchcape PLC UK 388 1,727
------
FOOD STORES - 2.4%
Jardine Matheson Holdings Ltd.(a) Si 106 585
Jusco Co. Ja 49 1,504
------
2,089
------
GENERAL MERCHANDISE STORES - 2.9%
Ito-Yokado Co. Ja 26 1,246
PT Matahari Putra Prima In 930 1,301
------
2,547
------
HOME FURNISHINGS & EQUIPMENT - 0.9%
Globex Utilidades SA Br 46 796
------
- -----------------------------------------------------------------------------------
SERVICES - 2.6%
BUSINESS SERVICES - 1.1%
Ing C Olivetti(a) It 3,000 872
Intrum Justitia UK 50 99
------
971
------
HEALTH SERVICES - 1.5%
Biora AB ADR(a) $ 19 343
Novartis Sz 1 962
------
1,305
------
- -----------------------------------------------------------------------------------
TRANSPORTATION, COMMUNICATIONS, ELECTRIC,
GAS & SANITARY SERVICES - 14.4%
AIR TRANSPORTATION - 1.2%
Helikopter Service A/S No 78 1,030
------
COMMUNICATIONS - 8.3%
DDI Corp. Ja (b) 955
Portugal Telecom SA Po 26 973
Royal Koninklijke PTT Nederland NV Ne 27 944
</TABLE>
10
<PAGE>
<TABLE>
Investment Portfolio/April 30, 1997
<CAPTION>
- -----------------------------------------------------------------------------------
<S> <C> <C> <C>
TRANSPORTATION, COMMUNICATIONS, ELECTRIC,
GAS & SANITARY SERVICES - CONT.
COMMUNICATIONS - CONT.
Tele-Communications International, Inc.(a) $ 80 $ 1,039
Telecom Argentina ADR Ar 21 1,035
Telecom Italia It 460 1,218
Telecom Italia SPA It 470 1,017
-------
7,181
-------
GAS SERVICES - 2.2%
British Gas PLC UK 488 1,419
Centrica PLC (a) UK 501 462
-------
1,881
-------
WATER TRANSPORTATION - 2.7%
Danzas Holding AG Sz 1 542
Hong Kong Ferry Holdings Co. HK 330 575
Precious Shipping Public Co., Ltd. Th 224 599
Transportacion Maritima Mexicana ADR Mx 115 589
-------
2,305
-------
- -----------------------------------------------------------------------------------
WHOLESALE TRADE - 3.8%
DURABLE GOODS - 3.8%
Brierley Investments Ltd. Nz 1,210 1,065
Celsis International PLC(a) UK 324 537
Powerscreen International PLC UK 70 691
Yamazen Corp.(a) Ja 312 1,031
-------
3,324
-------
TOTAL COMMON STOCKS (cost of $81,882) 82,245
-------
PREFERRED STOCKS - 3.0%
- ------------------------------------------------------------------------------------
MANUFACTURING - 3.0%
CHEMICALS & ALLIED PRODUCTS - 1.6%
Henkel Kgaa G 25 1,354
-------
FABRICATED METAL - 1.4%
Freidrich Grohe Ag G 4 1,198
-------
TOTAL PREFERRED STOCKS (cost of $1,942) 2,552
-------
WARRANTS(a) - 0.0%
- ------------------------------------------------------------------------------------
FINANCE, INSURANCE & REAL ESTATE - 0.0%
REAL ESTATE - 0.0%
Tian An China Investments, (cost of $0) HK 840 31
-------
TOTAL INVESTMENTS - 97.8% (cost of $83,828)(c) $84,828
-------
</TABLE>
11
<PAGE>
<TABLE>
Investment Portfolio/April 30, 1997
<CAPTION>
- -----------------------------------------------------------------------------------
SHORT TERM OBLIGATIONS - 1.6% PAR VALUE
- -----------------------------------------------------------------------------------
<S> <C> <C>
Repurchase agreement with Chase Securities, Inc.,
dated 04/30/97 due 05/01/97 at 5.34%, collateralized
by U.S. Treasury notes with various maturities to
2016, market value $1,401 (repurchase proceeds $1,362)
$ 1,362 $ 1,362
-------
OTHER ASSETS & LIABILITIES, NET- 0.6% 504
- -----------------------------------------------------------------------------------
NET ASSETS- 100% $86,694
=======
</TABLE>
NOTES TO INVESTMENT PORTFOLIO:
- --------------------------------------------------------------------------------
(a) Non-income producing.
(b) Rounds to less than one.
(c) Cost for federal income tax purposes is $84,366.
<TABLE>
<CAPTION>
Summary of Securities by
Country Country Value % of Total
- -----------------------------------------------------------------------------------
<S> <C> <C> <C>
Japan Ja $16,911 19.9
United Kingdom UK 6,710 7.9
Korea Ko 5,064 6.0
France Fr 4,843 5.7
Germany G 4,825 5.7
Finland Fi 4,662 5.5
Italy It 4,164 4.9
Sweden Sw 4,105 4.8
United States $ 1,840 2.2
Indonesia In 3,662 4.3
Norway No 3,648 4.3
Netherlands Ne 3,056 3.6
Hong Kong HK 3,004 3.5
Argentina Ar 2,505 3.0
Portugal Po 2,404 2.8
Switzerland Sz 1,930 2.3
Brazil Br 1,764 2.1
Thailand Th 1,707 2.0
Spain Sp 1,170 1.4
Australia Au 1,122 1.3
Russia Ru 1,105 1.3
New Zealand NZ 1,065 1.3
Belgium Be 810 1.0
Philippines Ph 763 0.9
Mexico Mx 589 0.7
</TABLE>
12
<PAGE>
<TABLE>
Investment Portfolio/April 30, 1997
<CAPTION>
- -----------------------------------------------------------------------------------
<S> <C> <C> <C>
Singapore Si 585 0.7
Israel Is 504 0.6
Malaysia Ma 311 0.3
-----------------------
$84,828 100.0
======= =====
</TABLE>
Certain securities are listed by country of underlying exposure but may trade
predominantly on other exchanges.
<TABLE>
<CAPTION>
ACRONYM NAME
------- ----
<S> <C>
ADR American Depository Receipts
GDR Global Depository Receipts
GDS Global Depository Shares
</TABLE>
See notes to financial statements.
13
<PAGE>
<TABLE>
STATEMENT OF ASSETS & LIABILITIES
APRIL 30, 1997 (UNAUDITED)
(in thousands except for per share amounts and footnotes)
<CAPTION>
<S> <C> <C>
ASSETS
Investments at value (cost $83,824) $84,828
Short-term obligations 1,362
-------
86,190
Cash held in foreign banks (cost $90) $ 90
Receivable for:
Investments sold 442
Dividends 272
Fund shares sold 64
Foreign tax reclaims 39
Deferred organization expenses 24 931
---- -------
Total Assets 87,121
LIABILITIES
Payable for:
Fund shares repurchased 345
Payable to Adviser 44
Accrued Deferred Trustees fees 2
Other 36
----
Total Liabilities 427
-------
NET ASSETS $86,694
=======
Net asset value & redemption price per share -
Class A ($30,900/3,111) $ 9.93
=======
Maximum offering price per share - Class A
($9.93/0.9425) $ 10.54(a)
=======
Net asset value & offering price per share -
Class B ($55,006/5,643) $ 9.75(b)
=======
Net asset value & redemption price per share -
Class D ($788/81) $ 9.77(b)
=======
Maximum offering price per share - Class D
($9.77/0.9900) $ 9.87
=======
</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>
<TABLE>
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED APRIL 30, 1997
(UNAUDITED)
(in thousands)
<CAPTION>
<S> <C> <C>
INVESTMENT INCOME
Dividends $ 823
Interest 40
------
Total investment income (net of nonrebatable foreign
taxes withheld at source which amounted to $99) 863
EXPENSES
Management fee $ 418
Service fee 115
Distribution fee - Class B 223
Distribution fee - Class D 4
Transfer agent 158
Bookkeeping fee 21
Trustees fee 8
Custodian fee 74
Audit fee 14
Legal fee 9
Registration fee 23
Reports to shareholders 7
Amortization of deferred
organization expenses 8
Other 12
------
1,094
Fees waived by the Adviser (57) 1,037
------ ------
Net Investment Loss (174)
------
NET REALIZED & UNREALIZED GAIN (LOSS) ON PORTFOLIO POSITIONS
Net realized gain (loss) on:
Investments 4,732
Foreign currency transactions (130)
------
Net Realized Gain 4,602
Net unrealized depreciation during the
period on:
Investments (704)
Foreign currency transactions (33)
------
Net Unrealized Depreciation (737)
------
Net Gain 3,865
------
Net Increase in Net Assets from Operations $3,691
======
</TABLE>
See notes to financial statements.
15
<PAGE>
<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 loss $ (174) $ (67)
Net realized gain 4,602 9,394
Net unrealized depreciation (737) (3,824)
-------- --------
Net Increase from Operations 3,691 5,503
-------- --------
Distributions:
From net investment income - Class A (273) -
From net realized gains - Class A (1,966) -
From net investment income - Class B (4) -
From net realized gains - Class B (3,855) -
From net investment income - Class D (2) -
From net realized gains - Class D (61) -
-------- --------
(2,470) -
-------- --------
Fund Share Transactions:
Receipts for shares sold - Class A 5,867 8,026
Value of distributions reinvested - Class A 2,094 -
Cost of shares repurchased - Class A (9,092) (20,637)
-------- --------
(1,131) (12,611)
-------- --------
Receipts for shares sold - Class B 7,015 11,432
Value of distributions reinvested - Class B 3,444 -
Cost of shares repurchased - Class B (16,459) (28,533)
-------- --------
(6,000) (17,101)
-------- --------
Receipts for shares sold - Class D 2,741 352
Value of distributions reinvested - Class D 52 -
Cost of shares repurchased - Class D (2,945) (110)
-------- --------
(152) 242
-------- --------
Net Decrease from Fund Share Transactions (7,283) (29,470)
-------- --------
Total Decrease (9,753) (23,967)
NET ASSETS
Beginning of period 96,447 120,414
-------- --------
End of period (net of overdistributed and
including undistributed net investment
income of $277 and $281, respectively.) $ 86,694 $ 96,447
======== ========
</TABLE>
Statement of Changes in Net Assets continued on next page.
See notes to financial statements.
16
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS - CONT.
<CAPTION>
(Unaudited)
Six months
ended Year ended
April 30 October 31
-------------------------
(in thousands) 1997 1996
<S> <C> <C>
NUMBER OF FUND SHARES
Sold - Class A 590 777
Issued for distributions reinvested - Class A 217 -
Repurchased - Class A (903) (2,012)
----- -----
(96) (1,235)
----- -----
Sold - Class B 718 1,132
Issued for distributions reinvested - Class B 362 -
Repurchased - Class B (1,669) (2,838)
----- -----
(589) (1,706)
----- -----
Sold - Class D 281 35
Issued for distributions reinvested - Class D 6 -
Repurchased - Class D (301) (11)
----- -----
(14) 24
----- -----
</TABLE>
See notes to financial statements.
17
<PAGE>
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1997 (UNAUDITED)
NOTE 1. INTERIM FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
In the opinion of management of Colonial International Fund for Growth (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 net assets and the financial highlights for the six
months then ended.
NOTE 2. ACCOUNTING POLICIES
- --------------------------------------------------------------------------------
ORGANIZATION: The Fund is a non-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 non U.S. equities. 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; 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 annual
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 revenue 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.
Debt securities generally are valued by a pricing service based upon market
transactions for normal, institutional-size trading units of similar securities.
When management deems it appropriate, an over-the-counter or exchange bid
quotation is used.
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.
18
<PAGE>
Notes to Financial Statements/April 30, 1997
- --------------------------------------------------------------------------------
The value of all assets and liabilities quoted in foreign currencies are
translated into U.S. dollars at that day's exchange rates. Korean equity
securities that have reached the limit for aggregate foreign ownership and for
which premiums to the local exchange prices may be paid by foreign investors are
valued by applying a broker quoted premium to the local share price.
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.
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.
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 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.
DEFERRED ORGANIZATION EXPENSES: The Fund incurred expenses of $77,162 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.
19
<PAGE>
Notes to Financial Statements/April 30, 1997
- --------------------------------------------------------------------------------
NOTE 2. ACCOUNTING POLICIES - CONT.
- --------------------------------------------------------------------------------
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.
FORWARD CURRENCY CONTRACTS: The Fund may enter into forward currency contracts
to purchase or sell foreign currencies at predetermined exchange rates in
connection with the settlement of purchases and sales of securities. The Fund
may also enter into forward currency contracts to hedge certain other foreign
currency denominated assets. The contracts are used to minimize the exposure to
foreign exchange rate fluctuations during the period between trade and
settlement date of the contracts. All contracts are marked-to-market daily,
resulting in unrealized gains or losses which become realized at the time the
forward currency contracts are closed or mature. Realized and unrealized gains
(losses) arising from such transactions are included in net realized and
unrealized gains (losses) on foreign currency transactions. Forward currency
contracts do not eliminate fluctuations in the prices of the Fund's portfolio
securities. While the maximum potential loss from such contracts is the
aggregate face value in U.S. dollars at the time the contract was opened,
exposure is typically limited to the change in value of the contract (in U.S.
dollars) over the period it remains open. Risks may also arise if counterparties
fail to perform their obligations under the contracts.
OTHER: Corporate actions are recorded on ex-date (except for certain foreign
securities which are recorded as soon after ex-date as the Fund becomes aware of
such), net of nonrebatable tax withholdings. Where a high level of uncertainty
as to collection exists, income on securities is recorded net of all tax
withholdings with any rebates recorded when received. The Fund may be subject to
foreign taxes on income, gains on investments, or foreign currency repatriation.
The Fund accrues foreign taxes as applicable based upon its current
interpretation of the tax rules and regulations that exist in the markets in
which it invests.
20
<PAGE>
Notes to Financial Statements/April 30, 1997
- --------------------------------------------------------------------------------
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 0.90% 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.
UNDERWRITING DISCOUNTS, SERVICE AND DISTRIBUTION FEES: Colonial Investment
Services, Inc. (the Distributor), an affiliate of the Adviser, is the Fund's
principal underwriter. For the six months ended April 30, 1997, the Fund has
been advised that the Distributor retained net underwriting discounts of $4,359
on sales of the Fund's Class A shares and received contingent deferred sales
charges (CDSC) of $203,442 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 and Class D 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 1.50% annually of the Fund's average net
assets.
21
<PAGE>
Notes to Financial Statements/April 30, 1997
- --------------------------------------------------------------------------------
NOTE 3. FEES AND COMPENSATION PAID TO AFFILIATES - CONT.
- --------------------------------------------------------------------------------
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 $27,003,356 and
$11,201,953, respectively.
Unrealized appreciation (depreciation) at April 30, 1997, based on cost of
investments for both financial statement and federal income tax purposes was:
<TABLE>
<S> <C>
Gross unrealized appreciation $ 11,883,163
Gross unrealized depreciation (11,421,165)
------------
Net unrealized appreciation $ 461,998
============
</TABLE>
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 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.
<TABLE>
NOTE 6. COMPOSITION OF NET ASSETS
- --------------------------------------------------------------------------------
<CAPTION>
<S> <S>
At April 30, 1997, net assets consisted of:
Capital paid in $81,310
Overdistributed net investment income (277)
Accumulated net realized gain 4,693
Net unrealized appreciation (depreciation) on:
Investments 1,004
Foreign currency transactions (36)
=======
$86,694
=======
</TABLE>
22
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
Selected data for a share of each class outstanding throughout each period
are as follows:
<CAPTION>
(Unaudited)
Six months ended April 30
-----------------------------------
1997
Class A Class B Class D
------- ------- -------
<S> <C> <C> <C>
Net asset value -
Begining of period $10.260 $10.040 $10.090
------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss(a)(b) 0.006 (0.031) (0.031)
Net realized and
unrealized gain(b) 0.399 0.387 0.377
------- ------- -------
Total from Investment
Operations 0.405 0.356 0.346
------- ------- -------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.090) (0.001) (0.021)
From net realized gains (0.645) (0.645) (0.645)
------- ------- -------
Total Distributions
Declared to Shareholders (0.735) (0.646) (0.666)
------- ------- -------
Net asset value -
End of period $ 9.930 $ 9.750 $ 9.770
------- ------- -------
Total return(c)(d)(e) 4.14% 3.70% 3.59%
------- ------- -------
RATIOS TO AVERAGE NET ASSETS
Expenses(f)(g) 1.75% 2.50% 2.50%
Net investment
income loss(f)(g) 0.11% (0.64)% (0.64)%
Fees waived or borne
by the Adviser(f)(g) 0.12% 0.12% 0.12%
Portfolio turnover(e) 12% 12% 12%
Average commission rate(h) $0.0016 $0.0016 $0.0016
Net assets at end
of period(000) $30,900 $55,006 $ 788
</TABLE>
(a) Net of fees and expenses waived or borne by the Adivser which
amounted to: $0.002 $0.002 $0.002
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total return at net asset value assuming no initial sales charge or
contingent deferred sales charge.
(d) Had the Adviser not waived or reimbursed a portion of expenses, total return
would have been reduced.
(e) Not annualized.
(f) Annualized.
(g) The benefits derived from custody credits and directed brokerage
arrangements had no impact. Prior years' ratios are net of benefits
received, if any.
(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>
<TABLE>
FINANCIAL HIGHLIGHTS
Selected data for a share of each class outstanding throughout each period
are as follows:
<CAPTION>
Year ended October 31
------------------------------------
1996
Class A Class B Class D
------- ------- -------
<S> <C> <C> <C>
Net asset value -
Beginning of period $ 9.760 $ 9.620 $ 9.670
------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment
income (loss)(b) 0.044(a) (0.032)(a) (0.032)(a)
Net realized and
unrealized gain (loss)(b) 0.456 0.452 0.452
------- ------- -------
Total from Investment
Operations 0.500 0.420 0.420
------- ------- -------
Net asset value -
End of period $10.260 $10.040 $10.090
======= ======= =======
Total return(c) 5.12%(d) 4.37%(d) 4.34%(d)
======= ======= =======
RATIOS TO AVERAGE NET ASSETS
Expenses(e) 1.75% 2.50% 2.50%
Net investment
income (loss)(e) 0.43% (0.32)% (0.32)%
Fees waived or borne
by the Adviser 0.04% 0.04% 0.04%
Portfolio turnover 129% 129% 129%
Average commission rate(f) $0.0011 $0.0011 $0.0011
Net assets at end of
period(000) $32,912 $62,578 $ 957
</TABLE>
(a) Net of fees and expenses waived or borne by the Adviser which
amounted to: $0.002 $0.002 $0.002
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total return at net asset value assuming no initial sales charge or
contingent deferred sales charge.
(d) Had the Adviser not waived or reimbursed a portion of expenses, total return
would have been reduced.
(e) The benefits derived from custody credits and directed brokerage
arrangements had no impact. Prior years' ratios are net of benefits
received, if any.
(f) 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.
24
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS - CONINUED
<CAPTION>
Year ended October 31
----------------------------------
1995
Class A Class B Class D
------- ------- -------
<S> <C> <C> <C>
$10.370 $10.300 $10.350
------- ------- -------
0.019 (0.052) (0.052)
(0.629) (0.628) (0.628)
------- ------- -------
(0.610) (0.680) (0.680)
------- ------- -------
$ 9.760 $ 9.620 $ 9.670
======= ======= =======
(5.88)% (6.60)% (6.57)%
======= ======= =======
1.74% 2.49% 2.49%
0.20% (0.55)% (0.55)%
- - -
35% 35% 35%
- - -
$43,354 $76,376 $ 684
</TABLE>
25
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
Selected data for a share of each class outstanding throughout each period
are as follows:
<CAPTION>
Period ended October 31
-----------------------------------
1994(b)
Class A Class B Class D(c)
------- -------- -------
<S> <C> <C> <C>
Net asset value -
Beginning of period $10.000 $ 10.000 $10.060
------- -------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment
income (loss)(a) 0.013 (0.058) (0.037)
Net realized and
unrealized gain(a) 0.357 0.358 0.327
------- -------- -------
Total from Investment
Operations 0.370 0.300 0.290
------- -------- -------
Net asset value -
End of period $10.370 $ 10.300 $10.350
======= ======== =======
Total return(d) 3.70%(e) 3.00%(e) 2.88%(e)
======= ======== =======
RATIOS TO AVERAGE NET ASSETS
Expenses 1.71%(f) 2.46%(f) 2.46%(f)
Net investment
income (loss) 0.14%(f) (0.61)%(f) (0.61)%(f)
PoPortfolio turnover 51%(f) 51%(f) 51%(f)
Net assets at end
of period (000) $62,251 $103,450 $ 570
</TABLE>
(a) Per share data was calculated using average shares outstanding during the
period.
(b) The Fund commenced investment operations on December 1, 1993.
(c) Class D shares were initially offered on July 1, 1994. Per share amounts
reflect activity from that date.
(d) Total return at net asset value assuming no initial sales charge or
contingent deferred sales charge.
(e) Not annualized.
(f) Annualized.
26
<PAGE>
IMPORTANT INFORMATION ABOUT THIS REPORT
The Transfer Agent for Colonial International Fund for Growth is:
Colonial Investors Service Center, Inc.
P.O. Box 1722
Boston, MA 02105-1722
1-800-345-6611
Colonial International Fund for Growth 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 International Fund
for Growth. 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 OF 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
IN-03/662D-0497 M (6/97)
- --------------------------------------------------------------------------------
