<PAGE>
COLONIAL INTERNATIONAL FUND FOR GROWTH Semiannual report
April 30, 1998
Not FDIC
Insured
May Lose Value
No Bank Guarantee
[GRAPHIC OF BANK NOTES]
<PAGE>
COLONIAL INTERNATIONAL FUND FOR GROWTH
HIGHLIGHTS
NOVEMBER 1, 1997 - APRIL 30, 1998
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:
- Long-term growth potential
- Worldwide diversification
- Experienced professional management
PORTFOLIO MANAGEMENT COMMENTARY: "During the second half of the period,
investors shifted their attention to the stocks of smaller, less well-known
companies. The Fund's strategy has emphasized this category of stocks over
time. As a result, the Fund's performance began to improve during the final
months of the period."
- David Harris
COLONIAL INTERNATIONAL FUND FOR GROWTH PERFORMANCE
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS C
<S> <C> <C> <C>
Inception dates 12/1/93 12/1/93 7/1/94
Six-month distributions declared $1.127 $1.038 $1.032
per share
Six-month total returns, assuming 11.18% 10.82% 10.82%
reinvestment of all distributions
and no sales charge or contingent
deferred sales charge (CDSC)
Net asset value per share on 4/30/98 $9.63 $9.46 $9.49
</TABLE>
TOP FIVE HOLDINGS
(as of 4/30/98)
1. Banque Nationale de Paris 3.6%
2. Deutsche Bank AG 3.2%
3. Telecom Italia 3.0%
4. Merita Ltd. Class A 2.7%
5. Henkel 2.7%
TOP FIVE COUNTRIES
(as of 4/30/98)
1. Japan 13.4%
2. France 11.4%
3. Germany 11.0%
4. Finland 9.4%
5. United Kingdom 9.3%
Country and holdings are shown as a percentage of total net assets. Because
the Fund is actively managed, there can be no guarantee the Fund will continue
to hold these securities or invest in these countries in the future.
2
<PAGE>
PRESIDENT'S MESSAGE
To Fund Shareholders
[Photo of Harold W. Cogger]
For the early part of the six months ended April 30, 1998, markets in the
Pacific Rim continued to dominate headlines as the currency crisis in Southeast
Asia generated a negative spillover effect on many stock markets worldwide.
During the "sorting out" period, some of the portfolio's smaller company and
emerging market stocks experienced lower prices as investors worried that
declining demand and depressed currencies in Asia would lead to a worldwide
decline in economic activity. However, during the second half of the period,
many markets, particularly in Europe and the U.S., recovered and went on to post
strong gains.
Prospects for international stocks are generally strong. In Europe, the process
of economic unification is nearly complete. In Asia, many fundamentally strong,
well-managed companies are currently trading at depressed prices, offering good
long-term price appreciation potential. Emerging countries continue to improve
their standards of living, creating higher demand for goods and services. Many
companies worldwide may benefit as their products address these needs.
An international fund provides attractive growth prospects as well as an
opportunity to diversify your core portfolio. World stock markets do not always
move in step with the U.S. stock market and international markets can provide
opportunities to outperform the U.S. market. Looking ahead, economic growth
prospects worldwide remain attractive and point to opportunities for future
gains.
The Board of Trustees recently approved a proposal to merge Colonial
International Fund for Growth into Colonial International Horizons Fund (CIHF).
Shareholders of the Fund need to approve the merger. You will receive a proxy
statement on or about June 15, 1998 asking you to vote on the proposed merger at
a special shareholder meeting to be held on July 24, 1998. CIHF is expected to
provide shareholders with greater diversification across regions and within
countries offering most of the same opportunities as Colonial International Fund
for Growth.
Respectfully,
/s/ Harold W. Cogger
Harold W. Cogger
President
June 9, 1998
Because market conditions change frequently, there can be no assurance that the
trends described will continue.
3
<PAGE>
PORTFOLIO MANAGEMENT REPORT
DAVID HARRIS is portfolio manager of Colonial International Fund for Growth and
is vice president of Colonial Management Associates, Inc. He is also an
investment management principal of a division of Stein Roe & Farnham
Incorporated.
EARLY PERIOD VOLATILITY GAVE WAY TO IMPROVED MARKET CONDITIONS
Investors continued to focus on the economies of the Pacific Rim during the
period as a Thai currency collapse last summer resulted in currency devaluations
throughout the region. During the first part of the period, shaken investor
confidence and the "Asian flu" spread to stock markets worldwide. Many of the
smaller and emerging market stocks in which the Fund is invested experienced
price declines. However, as time passed, it became apparent that many world
economies continued to combine well-balanced growth with low inflation. This was
particularly true in Europe and the United States. European markets were
energized by continued economic recovery and good corporate earnings as
restructuring efforts undertaken during the last few years began to yield
results. During the second part of the period, the prices of many smaller and
mid-sized companies owned in the portfolio rose considerably.
ATTRACTIVE VALUES FOUND IN EUROPEAN STOCKS
Investments in Europe now represent approximately 70% of the Fund's assets. We
believe the region has promising growth prospects resulting from the upcoming
European Monetary Union (EMU). We expect that European unity will allow
companies to become more effective global competitors as opportunities for
industry consolidation increase. We also believe that unity may force widespread
corporate restructuring which should increase efficiency, lower costs and
ultimately enhance shareholder value. For example, Compagnie Generale des Eaux
in France, which comprises of 2.2% of the Fund, has restructured its operations
and emerged as a higher growth media company. Formerly a French water utility,
the Company now provides alternative telephone access and recently entered a
partnership with America OnLine to provide internet services in France. This
stock rose over 60% during the six-month period.
4
<PAGE>
Other sectors that generated good performance were financial services and
telecommunications. Financial service stocks such as Banque Nationale de Paris
benefited from a low interest rate environment as well as increased valuations
based on worldwide merger activity in the industry. Telecommunication stocks
offered investors significant gains. Value-added services such as internet
access, caller I.D., call waiting and voice messaging are starting to experience
increased usage. Stocks such as Telecom Italia and Portugal Telecom S.A.,
representing 3.0% and 0.9% of the Fund, respectively, were up over 30% during
the period. Cellular phone service providers generated strong price increases as
well. Mannesmann A.G., a German cellular provider, comprising 2.1% of the Fund,
gained 96% during the last six months. Mannesmann controls the largest cellular
network in Germany and also owns cellular assets in Italy where over half of the
population is expected to use cellular phones.
PERFORMANCE REBOUNDED DURING SECOND PART OF THE PERIOD
For the six-month period, the Fund generated a total return of 11.18% for Class
A shares, based on net asset value. The Fund's value-oriented emphasis on
smaller, less well-known companies and markets was negative for performance
during the first part of the period when investors favored large, well-known
companies. During the second half of the period, smaller stocks and markets
generated more favorable investor interest and the Fund's performance improved.
CONTINUED OPPORTUNITIES EXPECTED IN EUROPE
Good growth potential is expected in Europe as a result of strong corporate
earnings, low inflation and the upcoming European Monetary Union. The EMU,
scheduled to start on January 1, 1999, offers shareholders a way to participate
in the potential for unprecedented market opportunity as trade barriers between
many European countries are removed.
5
<PAGE>
COLONIAL INTERNATIONAL FUND FOR GROWTH'S INVESTMENT PERFORMANCE VS.
THE MORGAN STANLEY CAPITAL INTERNATIONAL EAFE NET DIVIDENDS (ND) INDEX
Change in Value of $10,000 from 12/1/93 - 4/30/98
CLASS A SHARES
Based on NAV and POP
[LINE GRAPH]
Value of $10,000 Investment
made on 12/1/93 at 4/30/98
<TABLE>
<CAPTION>
Class A Class B Class C
NAV POP NAV w/CDSC NAV w/CDSC
<S> <C> <C> <C> <C> <C>
$11,820 $11,140 $11,432 $11,243 $11,431 $11,431
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS
As of 4/30/98
<TABLE>
<CAPTION>
Class A Class B Class C
Inception 12/1/93 12/1/93 7/1/94
NAV POP NAV w/CDSC NAV w/CDSC
<S> <C> <C> <C> <C> <C> <C>
1 year 10.62% 4.26% 9.80% 4.95% 9.80% 8.83%
Life 3.86 2.47 3.08 2.69 3.07 3.07
</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. Net asset value (NAV) returns do not
include sales charges or contingent deferred sales charge (CDSC). Public
offering price (POP) returns include the maximum sales charges of 5.75% for
Class A shares. The CDSC returns reflect the maximum charges of 5% for 1 year
and 2% since life for Class B shares and 1% for 1 year for Class C shares.
Performance for different share classes will vary based on differences in sales
charges and fees associated with each class.
Class C share performance information includes returns of the Fund's Class B
shares (the oldest existing fund class with a similar cost structure) for
periods prior to Class C's inception date. These Class B share returns are not
restated to reflect any expense differential (e.g., Rule 12b-1 fees) between
Class B shares and Class C shares.
The Morgan Stanley Capital International EAFE ND Index tracks the performance of
international stocks by market capitalization. Unlike mutual funds, indexes are
not investments, do not incur fees or expenses and are not professionally
managed.
6
<PAGE>
<TABLE>
<CAPTION>
CIFFG Class A sh
<S> <C> <C> <C>
AS OF DATE NAV POP MSCI EAFE ND
Dec 1, 93 10000 10000 10000
Dec 31, 93 10530 9925 10722
Jan 31, 94 10990 10358 11629
Feb 28, 94 10670 10056 11596
Mar 31, 94 10040 9463 11097
Apr 29, 94 10270 9679 11568
May 31, 94 10270 9679 11501
Jun 30, 94 10060 9482 11664
Jul 29, 94 10350 9755 11776
Aug 31, 94 10690 10075 12055
Sep 30, 94 10350 9755 11675
Oct 31, 94 10370 9774 12064
Nov 30, 94 9900 9331 11484
Dec 30, 94 9730 9171 11556
Jan 31, 95 9100 8577 11112
Feb 28, 95 8950 8435 11080
Mar 31, 95 9010 8492 11771
Apr 28, 95 9240 8709 12214
May 31, 95 9290 8756 12068
Jun 30, 95 9220 8690 11857
Jul 31, 95 9770 9208 12595
Aug 31, 95 9780 9218 12114
Sep 29, 95 9890 9321 12351
Oct 31, 95 9760 9199 12019
Nov 30, 95 9850 9284 12354
Dec 29, 95 10100 9519 12851
Jan 31, 96 10070 9491 12904
Feb 29, 96 10040 9463 12948
Mar 29, 96 10260 9670 13223
Apr 30, 96 10740 10122 13607
May 31, 96 10650 10038 13357
Jun 28, 96 10730 10113 13432
Jul 31, 96 10280 9689 13039
Aug 30, 96 10410 9811 13068
Sep 30, 96 10520 9915 13415
Oct 31, 96 10260 9670 13278
Nov 29, 96 10660 10047 13806
Dec 31, 96 10523 9918 13628
Jan 31, 97 10609 9999 13151
Feb 28, 97 10738 10121 13367
Mar 31, 97 10717 10101 13415
Apr 30, 97 10685 10070 13486
May 30, 97 11502 10841 14364
Jun 30, 97 12105 11409 15156
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Jul 31, 97 12148 11449 15401
Aug 29, 97 11255 10608 14251
Sep 30, 97 11685 11013 15049
Oct 31, 97 10631 10020 13892
Nov 28, 97 10222 9634 13751
Dec 31, 97 10015 9440 13871
Jan 30, 98 10371 9775 14505
Feb 27, 98 10875 10249 15436
Mar 31, 98 11623 10955 15911
Apr 30, 98 11820 11140 16037
</TABLE>
<PAGE>
INVESTMENT PORTFOLIO
APRIL 30, 1998 (UNAUDITED, IN THOUSANDS)
<TABLE>
<CAPTION>
COMMON STOCKS - 93.4% COUNTRY SHARES VALUE
--------------------- ------- ------ -----
<S> <C> <C> <C>
AGRICULTURE, FORESTRY & FISHING - 0.0%
AGRICULTURAL SERVICES
PT Chareon Pokphand Indonesia In 625 $ 35
-----------
CONSTRUCTION - 2.6%
HEAVY CONSTRUCTION-NON BUILDING CONSTRUCTION
Compagnie Generale des Eaux Fr 9 1,663
Kaneshita Construction Ja 51 265
-----------
1,928
-----------
FINANCE, INSURANCE & REAL ESTATE - 24.6%
DEPOSITORY INSTITUTIONS - 15.8%
Banco Latinoamericano de Exportaciones SA Pt 25 883
Banco Popolare di Milano It 196 1,790
Banque Nationale de Paris (a) Fr 32 2,695
Deutsche Bank AG G 31 2,368
Generale de Banque SA Be 2 1,125
Generale de Banque VVPR STRIP (a) Be (b) (b)
HSBC Holdings PLC HK 27 793
Merita Ltd., Class A (a) Fi 299 2,002
Siam Commercial Bank Th 147 175
Siam Commercial Bank Public Co., Ltd. Th 37 (b)
-----------
11,831
-----------
FINANCIAL SERVICES - 0.2%
Industrial Finance Corp. of Thailand Th 389 162
-----------
HOLDING COMPANIES - 2.4%
Fortis Amev NV Ne 30 1,774
-----------
INSURANCE CARRIERS - 1.3%
Reinsurance Australia Corp. Au 343 953
-----------
INVESTMENT COMPANIES - 0.9%
Fleming Russian Securities Fund Ltd. (a) Ru 23 388
Japan OTC Equity Fund, Inc. (a) Ja 1 263
-----------
651
-----------
NONDEPOSITORY CREDIT INSTITUTIONS - 1.3%
Promise Co., Ltd. Ja 19 966
-----------
REAL ESTATE - 2.0%
Asticus AB Sw 49 530
</TABLE>
7
<PAGE>
Investment Portfolio/April 30, 1998
<TABLE>
<CAPTION>
COMMON STOCKS - Cont. COUNTRY SHARES VALUE
--------------------- ------- ------ -----
<S> <C> <C> <C>
FINANCE, INSURANCE & REAL ESTATE - CONT.
REAL ESTATE - CONT.
Diligentia AB Sw 98 $ 922
PT Kawasan Industri Jababeka In 823 62
-----------
1,514
-----------
SECURITY BROKERS & DEALERS - 0.7%
Kokusai Securities Co., Ltd. Ja 62 533
-----------
MANUFACTURING - 41.3%
APPAREL - 0.8%
Tokyo Style Ja 69 623
-----------
CHEMICALS & ALLIED PRODUCTS - 6.2%
Indian Petrochemicals Corp., Ltd. In 54 301
Kemira Oy Fi 89 963
Norsk Hydro A/S No 24 1,181
Novartis Sz 1 963
SmithKline Beecham PLC (a) UK 104 1,242
-----------
4,650
-----------
COMMUNICATIONS EQUIPMENT - 5.5%
Koor Industries Ltd. ADR Is 23 576
Matsushita Electric Industrial Co. Ja 97 1,547
Portugal Telecom S.A. Pt 13 704
Racal Electronics PLC UK 224 1,249
-----------
4,076
-----------
ELECTRONIC COMPONENTS - 5.9%
Alcatel Alsthom Fr 9 1,749
Murata Manufacturing Co., Ltd. Ja 30 860
Royal Philips Electronics N.V. Ne 14 1,251
Samsung Electronics GDS (a) Ko 3 91
Samsung Electronics Old Preferred GDS Ko 42 474
-----------
4,425
-----------
FOOD & KINDRED PRODUCTS - 0.5%
Perdigao SA Comercio e Industria (a) Bz 245,000 407
-----------
HOUSEHOLD APPLIANCES - 1.1%
Moulinex (a) Fr 28 825
-----------
MACHINERY & COMPUTER EQUIPMENT - 6.1%
AGIV AG G 39 1,062
Canon, Inc. Ja 46 1,083
Hitachi Ltd. Ja 110 785
Mannesmann AG G 2 1,610
-----------
4,540
-----------
</TABLE>
8
<PAGE>
Investment Portfolio/April 30, 1998
<TABLE>
<CAPTION>
<S> <C> <C> <C>
PAPER PRODUCTS - 5.8%
Enso-Gutzeit Oy Fi 130 $ 1,383
Metro Pacific Corp. Ph 5,871 263
Metsa-Serla Oy Fi 153 1,589
Royal Koninklijke Ne 22 1,123
-----------
4,358
-----------
PETROLEUM REFINING - 5.5%
Compagnie Francaise de Petroleum Total Fr 13 1,597
Neste Oy Fi 34 1,075
YPF Sociedad Anonima ADR Ar 42 1,472
-----------
4,144
-----------
PRIMARY METAL - 3.6%
Avesta Sheffield (a) Sw 128 816
Billiton PLC UK 286 818
Ssab Svenskt Stal AB Sw 56 1,068
-----------
2,702
-----------
STONE, CLAY, GLASS & CONCRETE - 0.2%
Companion Building Materials, Ltd. HK 6,720 143
-----------
TEXTILE MILL PRODUCTS - 0.1%
PT Evershine Textile Industry In 1,442 77
-----------
MINING & ENERGY - 2.7%
COAL MINING - 0.4%
Samchully Co. Ko 15 301
-----------
CRUDE PETROLEUM & NATURAL GAS - 1.8%
Saga Petroleum A/S No 67 1,326
-----------
MISCELLANEOUS METAL ORES - 0.5%
Southern Peru Cooper Pe 24 368
-----------
RETAIL TRADE - 4.5%
AUTO DEALERS & GAS STATIONS - 2.2%
Inchcape PLC UK 443 1,648
-----------
GENERAL MERCHANDISE STORES - 2.3%
Globex Utilidades SA Bz 46 437
Ito-Yokado Co., Ltd. Ja 25 1,289
-----------
1,726
-----------
SERVICES - 1.9%
COMPUTER SOFTWARE
Ing C. Olivetti & SPA (a) It 1,089 1,407
-----------
</TABLE>
9
<PAGE>
Investment Portfolio/April 30, 1998
<TABLE>
<CAPTION>
COMMON STOCKS - Cont. COUNTRY SHARES VALUE
--------------------- ------- ------ -----
<S> <C> <C> <C>
TRANSPORTATION, COMMUNICATION, ELECTRIC,
GAS & SANITARY SERVICES - 13.6%
AIR TRANSPORTATION - 1.0%
Helikopter Service Group A/S No 66 $ 755
-----------
GAS SERVICES - 2.7%
British Gas Co. UK 266 1,422
Centrica PLC (a) UK 332 576
-----------
1,998
-----------
SANITARY SERVICES - 0.7%
Companhia de Saneamento Basico do Estado de
Sao Paulo Bz 2,360 536
-----------
TELECOMMUNICATION - 8.3%
Nippon Telegraph & Telephone Corp. Ja (b) 1,353
Tele-Communications International, Inc. (a) It 71 1,351
Telecom Argentina SA ADR Ar 15 540
Telecom Italia It 273 1,440
Telecom Italia SPA It 111 832
Telecomunicacoes Brasileiras ADR Bz 6 719
-----------
6,235
-----------
WATER TRANSPORTATION - 0.9%
Danzas Holding AG Sz 3 711
-----------
WHOLESALE TRADE - 2.2%
DURABLE GOODS
Biora AB ADR Sw 16 502
Brierley Investments Ltd. NZ 1,085 625
Yamazen Corp. (a) Ja 282 499
-----------
1,626
-----------
TOTAL COMMON STOCKS (cost of $61,220) 69,954
-----------
PREFERRED STOCKS - 4.2%
MANUFACTURING - 4.2%
CHEMICALS & ALLIED PRODUCTS - 2.7%
Henkel Kgaa G 26 1,998
-----------
FABRICATED METAL - 1.5%
Friedrich Grohe Ag G 4 1,164
-----------
TOTAL PREFERRED STOCKS (cost of $1,931) 3,162
-----------
RIGHTS - 0.0%
MANUFACTURING - 0.0%
PRIMARY METAL
Ssab Svenskt Stal AB Rights Sw 56 (b)
(cost of $0)
</TABLE>
10
<PAGE>
Investment Portfolio/April 30, 1998
<TABLE>
<CAPTION>
<S> <C> <C> <C>
WARRANTS - 0.0%
CONSTRUCTION - 0.0%
HEAVY CONSTRUCTION-NON BUILDING CONSTRUCTION
Compagnie Generale des Eaux (a) Fr 9 $ 14
(cost of $6) -----------
TOTAL INVESTMENTS - 97.6% (cost of $63,157) (c) 73,130
-----------
SHORT-TERM OBLIGATIONS - 1.7% PAR
Repurchase agreement with ABN AMRO Chicago Corp.,
dated 04/30/98 due 05/01/98 at 5.52%,
collateralized by U.S. Treasury notes and bill
with various maturities to 2021, market
value $1,543 (repurchase proceeds $1,275) $ 1,275 1,275
-----------
OTHER ASSETS & LIABILITIES, NET - 0.7% 480
NET ASSETS - 100.00% $ 74,885
-----------
NOTES TO INVESTMENT PORTFOLIO:
(a) Non-income producing.
(b) Rounds to less than one.
(c) Cost for federal income tax purpose is $63,780.
</TABLE>
11
<PAGE>
Investment Portfolio/April 30, 1998
<TABLE>
<CAPTION>
Summary of Securities by Country Country Value % of Total
<S> <C> <C> <C>
Japan Ja 10,066 13.8
France Fr 8,543 11.7
Germany G 8,202 11.2
Finland Fi 7,012 9.6
United Kingdom UK 6,955 9.5
Italy It 6,820 9.3
Netherlands Ne 4,148 5.7
Sweden Sw 3,838 5.2
Norway No 3,262 4.4
Brazil Bz 2,099 2.9
Argentina Ar 2,012 2.7
Switzerland Sz 1,674 2.3
Portugal Pt 1,587 2.2
Belgium Be 1,125 1.5
Australia Au 953 1.3
Hong Kong HK 936 1.3
Korea Ko 866 1.2
New Zealand NZ 625 0.9
Israel Is 576 0.8
Indonesia In 475 0.6
Russia Ru 388 0.5
Peru Pe 368 0.5
Thailand Th 337 0.5
Phillippines Ph 263 0.4
------------- -----------
73,130 100.0
============= ===========
</TABLE>
Certain securities are listed by country of underlying exposure
but may trade predominantly on other exchanges.
Acronym Name
------- ----
ADR American Depositary Receipt
GDS Global Depositary Share
STRIP Separately Traded Receipt of Interest and Principal
See notes to financial statements.
12
<PAGE>
STATEMENT OF ASSETS & LIABILITIES
APRIL 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
(in thousands except for per share amounts and footnotes)
ASSETS
<S> <C> <C>
Investments at value (cost $63,157) $ 73,130
Short-term obligations 1,275
-------------
74,405
Cash held in foreign banks (cost $178) $ 180
Receivable for:
Investments sold 328
Dividends 267
Foreign tax reclaims 46
Fund shares sold 15
Deferred organization expenses 8
Other 4 848
----------- -------------
Total Assets 75,253
LIABILITIES
Payable for:
Fund shares repurchased 302
Payable to Adviser 21
Accrued:
Deferred Trustees fees 2
Other 43
-----------
Total Liabilities 368
-------------
NET ASSETS $ 74,885
=============
Net asset value & redemption price per share -
Class A ($27,102/2,815) $9.63
=============
Maximum offering price per share - Class A
($9.63/0.9425) $10.22(a)
=============
Net asset value & offering price per share -
Class B ($46,941/4,961) $9.46(b)
=============
Net asset value & offering price per share -
Class C ($842/89) $9.49(b)
=============
</TABLE>
(a) On sales of $50,000 or more the offering price is reduced.
(b) Redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
See notes to financial statements.
13
<PAGE>
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED APRIL 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
(in thousands)
<S> <C> <C>
INVESTMENT INCOME
Dividends $ 671
Interest 69
-------------
Total investment income (net of nonreclaimable foreign
taxes withheld at source which amounted to $83) 740
EXPENSES
Management fee $ 329
Service fee 90
Distribution fee - Class B 174
Distribution fee - Class C 3
Transfer agent 132
Bookkeeping fee 17
Trustees fee 7
Custodian fee 61
Audit fee 13
Legal fee 3
Registration fee 18
Reports to shareholders 7
Amortization of deferred
organization expenses 8
Other 4
-----------
866
Fees waived by the Adviser (21) 845
----------- -------------
Net Investment Loss (105)
-------------
NET REALIZED & UNREALIZED GAIN (LOSS) ON PORTFOLIO POSITIONS
Net realized loss on:
Investments (5,814)
Foreign currency transactions (21)
-----------
Net Realized Loss (5,835)
Net unrealized appreciation (depreciation)
during the period on:
Investments 13,379
Foreign currency transactions (1)
-----------
Net Unrealized Appreciation 13,378
-------------
Net Gain 7,543
-------------
Increase in Net Assets from Operations $ 7,438
=============
</TABLE>
See notes to financial statements.
14
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
(Unaudited)
Six months
ended Year ended
(in thousands) April 30 October 31
----------- -------------
INCREASE (DECREASE) IN NET ASSETS 1998 1997 (a)
<S> <C> <C>
Operations:
Net investment loss $ (105) $ (335)
Net realized gain (loss) (5,835) 8,853
Net unrealized appreciation (depreciation) 13,378 (5,120)
----------- -------------
Net Increase from Operations 7,438 3,398
----------- -------------
Distributions:
From net investment income - Class A (228) (273)
In excess of net investment income - Class A (315) (1,966)
From net realized gains - Class A (2,526) -
In excess of net realized gains - Class A (28) -
From net investment income - Class B (226) (5)
In excess of net investment income - Class B (313) (3,855)
From net realized gains - Class B (4,582) -
In excess of net realized gains - Class B (51) -
From net investment income - Class C (3) (2)
In excess of net investment income - Class C (4) (61)
From net realized gains - Class C (67) -
In excess of net realized gains - Class C (1) -
----------- -------------
(906) (2,764)
----------- -------------
Fund Share Transactions:
Receipts for shares sold - Class A 5,072 15,576
Value of distributions reinvested - Class A 2,916 2,094
Cost of shares repurchased - Class A (8,420) (21,883)
----------- -------------
(432) (4,213)
----------- -------------
Receipts for shares sold - Class B 6,057 21,374
Value of distributions reinvested - Class B 4,707 3,444
Cost of shares repurchased - Class B (13,072) (35,636)
----------- -------------
(2,308) (10,818)
----------- -------------
Receipts for shares sold - Class C 667 4,405
Value of distributions reinvested - Class C 72 52
Cost of shares repurchased - Class C (658) (4,659)
----------- -------------
81 (202)
----------- -------------
Net Decrease from Fund Share Transactions (2,659) (15,233)
----------- -------------
Total Decrease (3,565) (17,997)
NET ASSETS
Beginning of period 78,450 96,447
----------- -------------
End of period (net of overdistributed and
including undistributed net investment
income of $633 and $457, respectively) $ 74,885 $ 78,450
=========== =============
</TABLE>
(a) Effective July 1, 1997, Class D shares were redesignated Class C
shares. Statement of Changes in Net Assets continued on next page.
See notes to financial statements.
15
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS - CONT.
<TABLE>
<CAPTION>
(Unaudited)
Six months
ended Year ended
April 30 October 31
----------- -------------
<S> <C> <C>
(in thousands) 1998 1997 (a)
NUMBER OF FUND SHARES
Sold - Class A 576 1,487
Issued for distributions reinvested - Class A 364 217
Repurchased - Class A (947) (2,089)
----------- -------------
(7) (385)
----------- -------------
Sold - Class B 684 2,050
Issued for distributions reinvested - Class B 597 362
Repurchased - Class B (1,480) (3,484)
----------- -------------
(199) (1,072)
----------- -------------
Sold - Class C 81 438
Issued for distributions reinvested - Class C 9 5
Repurchased - Class C (77) (462)
----------- -------------
13 (19)
----------- -------------
</TABLE>
(a) Effective July 1, 1997, Class D shares were redesignated Class C
shares. See notes to financial statements.
16
<PAGE>
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1998 (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, 1998, 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 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 C. 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 C shares are
subject to a contingent deferred sales charge on redemptions made within one
year after purchase and a continuing distribution fee.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of 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 generally 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. Korean equity
securities that have reached the limit for aggregate foreign ownership
17
<PAGE>
Notes to Financial Statements/April 30, 1998
NOTE 2. ACCOUNTING POLICIES - CONT.
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 for which market quotations are not readily available 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 C 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 C net investment income per share data
reflects the distribution fee applicable to Class B and Class C shares only.
Class B and Class C 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 C 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.
18
<PAGE>
Notes to Financial Statements/April 30, 1998
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 nonreclaimable tax withholdings. Where a high level of uncertainty
as to collection exists, income on securities is recorded net of all tax
withholdings with any rebates recorded when received. The Fund may be subject to
foreign taxes on income, gains on investments, or foreign currency repatriation.
The Fund accrues foreign taxes as applicable based upon its current
interpretation of the tax rules and regulations that exist in the markets in
which it invests.
The Fund's custodian takes possession through the federal book-entry system of
securities collateralizing repurchase agreements. Collateral is marked-to-market
daily to ensure that the market value of the underlying
19
<PAGE>
Notes to Financial Statements/April 30, 1998
NOTE 2. ACCOUNTING POLICIES - CONT.
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.
Effective October 1, 1997 and continuing through September 1998, the Transfer
agent fee will be reduced by 0.0012% in cumulative monthly increments, resulting
in a decrease in the fee from 0.25% to 0.236% annually.
UNDERWRITING DISCOUNTS, SERVICE AND DISTRIBUTION FEES: Liberty Financial
Investments, Inc., (the Distributor), a subsidiary of the Adviser, is the Fund's
principal underwriter. For the six months ended April 30, 1998, the Fund has
been advised that the Distributor retained net underwriting discounts of $2,958
on sales of the Fund's Class A shares and received $121,201 and $58 of
contingent deferred sales charges (CDSC) on Class B and Class C shares
redemptions, respectively.
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 C 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: Through December 31, 1997, the Adviser waived fees and bore
certain Fund expenses to the extent that total expenses (exclusive of service
and distribution fees, brokerage commissions, interest, taxes and extraordinary
expenses, if any) exceeded 1.50% annually of the Fund's average net assets.
Effective January 1, 1998, the expense limit was eliminated.
20
<PAGE>
Notes to Financial Statements/April 30, 1998
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, 1998, purchases and
sales of investments, other than short-term obligations, were $7,661,740 and
$19,128,343, respectively.
Unrealized appreciation (depreciation) at April 30, 1998, based on cost of
investments for federal income tax purposes was:
Gross unrealized appreciation $20,456,164
Gross unrealized depreciation (11,106,469)
--------------
Net unrealized appreciation $ 9,349,695
==============
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, 1998.
NOTE 6. COMPOSITION OF NET ASSETS
<TABLE>
<CAPTION>
At April 30, 1998, net assets consisted of:
<S> <C>
Capital paid in $ 71,464
Distribution in excess of net investment income (633)
Accumulated net realized loss (5,909)
Net unrealized appreciation (depreciation) on:
Investments 9,973
Foreign currency transactions (10)
--------------
$ 74,885
==============
</TABLE>
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
---------------------------------------
1998
Class A Class B Class C
------- ------- -------
<S> <C> <C> <C>
Net asset value -
Beginning of period $ 9.880 $ 9.660 $ 9.680
----------- ----------- -----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (a)(c) 0.009 (0.024) (0.024)
Net realized and
unrealized gain 0.868 0.862 0.866
----------- ----------- -----------
Total from Investment
Operations 0.877 0.838 0.842
----------- ----------- -----------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.009) 0.024 0.024
In excess of net investment income (0.188) (0.132) (0.126)
From net realized gains (0.920) (0.920) (0.920)
In excess of net of realized gains (0.010) (0.010) (0.010)
----------- ----------- -----------
Total Distributions
Declared to Shareholders (1.127) (1.038) (1.032)
----------- ----------- -----------
Net asset value -
End of period $ 9.630 $ 9.460 $ 9.490
=========== =========== ===========
Total return (d)(e) 11.18%(f) 10.82%(f) 10.82%(f)
=========== =========== ===========
RATIOS TO AVERAGE NET ASSETS
Expenses (g) 1.82%(h) 2.57%(h) 2.57%(h)
Net investment
income (loss) (g) 0.20%(h) (0.55)%(h) (0.55)%(h)
Fees waived or borne
by the Adviser (g) 0.06%(h) 0.06%(h) 0.06%(h)
Portfolio turnover 11%(f) 11%(f) 11%(f)
Average commission rate 0.0056 $ 0.0056 0.0056
Net assets at end
of period (000) $27,102 $ 46,941 $ 842
</TABLE>
(a) Net of fees and expenses waived or borne by the Adviser which amounted to:
$0.003 $0.003 $0.003
(b) Effective July 1, 1997, Class D shares were redesignated Class C shares.
(c) Per share data was calculated using average shares outstanding during the
period.
(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) The benefits derived from custody credits and directed brokerage
arrangements had no impact.
(h) Annualized.
22
<PAGE>
FINANCIAL HIGHLIGHTS - Cont.
Selected data for a share of each class outstanding throughout each period are
as follows:
<TABLE>
<CAPTION>
Year ended October 31
--------------------------------------
1997
Class A Class B Class C (b)
--------- --------- -------------
<S> <C> <C> <C>
$10.260 $10.040 $ 10.090
---------- ---------- -----------
0.014 (0.064) (0.064)
0.340 0.329 0.320
---------- ---------- -----------
0.354 0.265 0.256
---------- ---------- -----------
(0.089) - (0.021)
- - -
(0.645) (0.645) (0.645)
- - -
---------- ---------- -----------
(0.734) (0.645) (0.666)
---------- ---------- -----------
$ 9.880 $ 9.660 $ 9.680
========== ========== ===========
3.61% 2.74% 2.63%
========== ========== ===========
1.75% 2.50% 2.50%
0.13% (0.62)% (0.62)%
0.07% 0.07% 0.07%
23% 23% 23%
$0.0023 $0.0023 $ 0.0023
$27,875 $49,840 $ 735
$0.007 $0.007 $0.007
</TABLE>
23
<PAGE>
FINANCIAL HIGHLIGHTS
Selected data for a share of each class outstanding throughout each period are
as follows:
<TABLE>
<CAPTION>
Year ended October 31
-----------------------------------------------
1996
Class A Class B Class C (b)
---------- ----------- --------------
<S> <C> <C> <C>
Net asset value -
Beginning of period $ 9.760 $ 9.620 $ 9.670
---------- ----------- --------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment
income (loss) (c) 0.044(a) (0.032)(a) (0.032)(a)
Net realized and
unrealized gain (loss) 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 (d) 5.12%(e) 4.37%(e) 4.34% (e)
========== =========== ==============
RATIOS TO AVERAGE NET ASSETS
Expenses (f) 1.75% 2.50% 2.50%
Net investment
income (loss)(f) 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 (g) $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:
$0.004 $0.004 $0.004
(b) Effective July 1, 1997, Class D shares were redesignated Class C shares.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) Total return at net asset value assuming 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) The benefits derived from custody credits and directed brokerage
arrangements had no impact. Prior years' ratios are net of benefits
received, if any.
(g) 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>
FINANCIAL HIGHLIGHTS - CONT.
<TABLE>
<CAPTION>
Year ended October 31
--------------------------------------------
1995
Class A Class B Class C (b)
------------- ----------- --------------
<S> <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>
FINANCIAL HIGHLIGHTS - CONT.
Selected data for a share of each class outstanding throughout each period are
as follows:
<TABLE>
<CAPTION>
Period ended October 31
-------------------------------------------
1994 (a)
Class A Class B Class C (b)(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) (d) 0.013 (0.058) (0.037)
Net realized and
unrealized gain 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 (e) 3.70%(f) 3.00%(f) 2.88%(f)
========== ========== ==============
RATIOS TO AVERAGE NET ASSETS
Expenses 1.71%(g) 2.46%(g) 2.46%(g)
Net investment
income (loss) 0.14%(g) (0.61)%(g) (0.61)%(g)
Portfolio turnover 51%(g) 51%(g) 51%(g)
Net assets at end
of period (000) $62,251 $103,450 $ 570
</TABLE>
(a) The Fund commenced investment operations on December 1, 1993.
(b) Effective July 1, 1997, Class D shares were redesignated Class C shares.
(c) Class C shares were initially offered on July 1, 1994. Per share amounts
reflect activity from that date.
(d) Per share data was calculated using average shares outstanding during the
period.
(e) Total return at net asset value assuming no initial sales charge or
contingent deferred sales charge.
(f) Not annualized.
(g) 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
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 and with the most
recent copy of Liberty Financial Investments Performance Update.
27
<PAGE>
Trustees
ROBERT J. BIRNBAUM
Consultant (formerly Special Counsel, Dechert, Price & Rhoads; President and
Chief Operating Officer, New York Stock Exchange, Inc.; President, American
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, & Frankel)
JAMES E. GRINNELL
Private Investor (formerly Senior Vice President-Operations, The Rockport
Company)
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, CS 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
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.)
[LIBERTY FINANCIAL LOGO]
LIBERTY FINANCIAL INVESTMENTS, INC. (C)1998
Distributor for Colonial Funds, Stein Roe Advisor Funds and Newport Funds
One Financial Center, Boston, MA 02111-2621, 1-800-426-3750
Visit us at www.libertyfunds.com
IN-03/252F-0498(6/98)98/561
