--------------------------------------------------------------------------------
STEIN ROE ADVISOR TAX-MANAGED FUNDS Semiannual Report
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April 30, 2000
[COVER PHOTO]
<PAGE>
President's Message
Dear Shareholder:
Recently the U.S. logged nine consecutive years of economic prosperity - a
record for anyone who is counting. Productivity gains have made it possible for
personal income to rise without much of an upswing in inflation, although higher
energy prices have started to take a bigger bite out of American pocketbooks.
American consumers have continued to spend freely, buying homes and new cars and
putting little in the bank. The national savings rate dipped to a record low of
0.2% in February before inching back to 0.4% in March.(1)
The U.S. stock market rose strongly during the first half of the six-month
period, powered by large technology companies and other selected blue chips.
However, volatility brought down many of the highest fliers in February and
March. It also helped close the gap somewhat between old economy industrials and
new economy technology, telecommunications and biotechnology upstarts. Despite a
rough-and-tumble market, we remained committed to our disciplined investment
styles and to tax-managed investment strategies. We hope that you will think of
the year's performance in that perspective and remember that diversification is
an investor's ally over the long term.
I encourage you to review the following report carefully. For more information,
contact your financial advisor or visit us on the Internet at
www.libertyfunds.com for updates on your Fund's progress. As always, we thank
you for choosing a Stein Roe Advisor tax-managed fund and for the opportunity to
serve your investment needs.
Respectfully,
/s/ Stephen E. Gibson
Stephen E. Gibson
President
June 12, 2000
(1) U.S. Department of Commerce
Because economic and market conditions change frequently, there can be no
assurance that the trends described above or on the following pages will
continue or come to pass.
<PAGE>
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Tax-management can make a difference
--------------------------------------------------------------------------------
The difference between before and after taxes can be significant. That's why for
funds that hold tax-efficiency as a priority, it's important to examine the
returns that were actually received by investors. The chart below provides you
with both before- and after-tax performance for your fund assuming that you sold
your shares at the end of the period.
Average annual total returns
Class A shares a without sales charge
For the period ending 4/30/00
<TABLE>
<CAPTION>
6 months 1 year Life of Fund
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
If you continue to hold your shares at the end of the period:
Stein Roe Advisor Tax-Managed Growth Fund (since 12/30/96)
Before-tax return 9.77% 16.41% 20.67%
After-tax return 9.77% 16.41% 20.67%
----------------------------------------------------------------------------------------------------
Stein Roe Advisor Tax-Managed Growth Fund II (since 3/7/00)
Before-tax return N/A N/A (1.42)%
After-tax return N/A N/A (1.42)%
----------------------------------------------------------------------------------------------------
Stein Roe Advisor Tax-Managed Value Fund (since 6/1/99)
Before-tax return (1.03)% N/A (12.25)%
After-tax return (1.03)% N/A (12.25)%
----------------------------------------------------------------------------------------------------
</TABLE>
As stated, these returns assume you hold your shares at the end of the period.
In this case, your total returns after taxes are the same as the pre-tax
returns. This is due to the fact that none of the funds distributed taxable
income or gains during the period. Had you sold your shares at the end of the
period, you may have realized a capital gain and your after-tax return after
paying federal income tax would have been lower.
In the future, the Funds may be required to distribute taxable income and
capital gains from time to time. In addition, market conditions may limit the
Funds' ability to generate tax losses or to avoid dividend income. Excessive
shareholder redemptions may also require the Funds to sell securities and
realize gains. Finally, the ability to use certain tax-management techniques may
be curtailed or eliminated in the future by tax legislation, regulations,
administrative interpretations or court decisions.
Past performance is no guarantee of future performance.
Performance for different share classes will vary based on differences in sales
charges and fees associated with each class. The performance results reflect any
voluntary waivers or reimbursement of Fund expenses by the Advisor or its
affiliates. Absent these waivers or reimbursement arrangements, performance
results would have been lower.
Pre-tax calculations assume that all distributions received (income dividends
and short-term and long-term capital gains) are reinvested in new shares. When
calculating the taxes due, we used the highest individual federal income tax
rates at the time of distributions. Those rates are currently 39.6% for
dividends and short-term capital gains and 20% for long-term capital gains. The
impact of state and local income taxes was not considered.
UPDATE
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The Securities and Exchange Commission (SEC) is currently in the process of
determining how after-tax returns should be calculated and reported. It is
proposed that Funds disclose pre-tax and after-tax performance assuming that you
sell your shares at the end of the period. Capital gains tax paid on the
resulting gain on the sale of the shares would lower the after-tax return.
1
<PAGE>
Semiannual Report: Stein Roe Advisor Tax-Managed Growth Fund
--------------------------------------------------------------------------------
Portfolio Managers' Report
--------------------------------------------------------------------------------
A solid period for the Fund
The stock market soared, then stumbled as investors began to express concern
over extreme valuations, an overheating economy and five consecutive interest
rate increases. In that environment, Stein Roe Advisor Tax-Managed Growth Fund's
Class A shares returned 9.77%, without a sales charge, for the six months ended
April 30, 2000. That compared favorably to the S&P 500, which was up 7.18% over
the same period. Once again, the Fund's performance was achieved without the
payment of taxable distributions to shareholders.
The Fund's mix of "old" and "new" economy stocks helped performance
Although the market environment continued to be generally positive for growth
stocks over most of the last six months, the latter part of the period proved
much more challenging. A sharp correction in so-called "new economy" stocks,
which had led the market earlier in the period, reflected investor concern that
valuations had gotten out of hand. However, our blend of new economy and old
economy stocks helped us to outperform during the six-month period and also
dampened the impact of the market's volatility.
We also used the period of increased market volatility to harvest losses in the
Fund to enhance its tax efficiency. This should help us to offset any realized
future capital gains and may help to preserve our record of tax efficiency,
which dates back to the Fund's inception on December 30, 1996.
Technology, for better and worse
Despite the severe correction in technology stocks late in the period, the
Fund's strongest performers were all technology stocks. EMC, Cisco and
Hewlett-Packard (3.2%, 4.3% and 1.8% of net assets, respectively) led
performance along with Network Appliance and Applied Material (1.8% and 2.8% of
net assets, respectively), both recent purchases in the Fund. The latter two
reflect our enthusiasm for both selected Internet-related beneficiaries with
sound business models, and growth in the semiconductor industry over the next
several years. These companies complement our existing investments in both
areas.
Technology also accounted for some of the Fund's biggest disappointment during
the period. Microsoft (1.7% of net assets) came under pressure when it became
clear that the company was unlikely to reach a settlement in the government's
anti-trust case. Fortunately, we trimmed our investment in Microsoft early in
Net asset value per share as of 4/30/00
Class A $18.87
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Class B $18.40
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Class C $18.39
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Class E $18.84
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Class F $18.41
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Class Z $18.93
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Top 10 holdings as of 4/30/00
1. Cisco Systems 4.3%
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2. Intel 3.6%
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3. General Electric 3.4%
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4. EMC 3.2%
--------------------------------------------------------------------------------
5. Motorola 2.8%
--------------------------------------------------------------------------------
6. Applied Materials 2.8%
--------------------------------------------------------------------------------
7. Guidant 2.8%
--------------------------------------------------------------------------------
8. IMS Health 2.7%
--------------------------------------------------------------------------------
9. AES 2.7%
--------------------------------------------------------------------------------
10. Warner Lambert 2.6%
--------------------------------------------------------------------------------
Holdings are calculated as a percentage of net assets. Because the Fund is
actively managed, there can be no guarantee the Fund will continue to maintain
these holdings in the future.
BOUGHT
--------------------------------------------------------------------------------
Applied Materials (2.8% of net assets) is the world's leading vendor of
semiconductor fabrication equipment. The demand outlook for semiconductors
remains strong over the next several years. That, in turn, should stimulate
increased demand for semiconductor manufacturing equipment.
2
<PAGE>
Semiannual Report: Stein Roe Advisor Tax-Managed Growth Fund
--------------------------------------------------------------------------------
Portfolio Managers' Report (continued)
--------------------------------------------------------------------------------
February prior to its big downturn. However, we also think that the stock market
has presented a worst case scenario for Microsoft's future; and although it
continues to operate under a cloud of uncertainty, we held onto some of our
position because we believed its fundamental business prospects remained
reasonably solid.
Rising interest rates hurt financial stocks
Interest rate concerns took their toll on financial stocks. Generally, financial
stocks are among the first to move up when the economy slows to a pace that
could extend the life of the current business expansion and fears about rising
interest rates are relieved. For the most part, we held onto our financial
stocks believing in their ability to continue to grow earnings despite some
further increases in interest rates. We maintained positions in American
International Group, Citigroup and Chase Manhattan (2.6%, 2.4% and 2.0% of net
assets, respectively), as all have strong global leadership positions and could
be among the favorites once investors return to financials. We believe these
companies are positioned to operate in a rising rate environment without a
material change to their business prospects. For tax reasons, however, we sold
our position in Associates First Capital, which performed poorly despite solid
fundamentals.
Looking ahead
Although the U.S. economy and corporate profit growth have continued to be quite
strong, there are troublesome signs that inflationary pressures are beginning to
build. If the Federal Reserve Board's interest rate hikes succeed in slowing the
economy and easing inflation fears, investors are likely to read it as a
positive development. In that environment, we believe the Fund's investments in
high-quality growth stocks, blended with selected financials and "soft"
cyclicals, should leave us well positioned. Meanwhile, our priority is to make
the best investment decisions we can and to pursue tax-management strategies
aimed at helping our shareholders keep more of what they earn.
/s/ William M. Hughes /s/ Steve Berman
William M. Hughes and Steve Berman are senior equity analysts at Stein Roe &
Farnham Incorporated and are members of the eight-person investment management
team for Stein Roe Advisor Tax-Managed Growth Fund.
An investment in the Fund may present certain risks, including stock market
fluctuations due to economic and business developments. The Fund expects to
distribute taxable income and capital gains from time to time, and management's
ability to use certain tax-management techniques may be curtailed or eliminated
in the future.
Top sector breakdowns as of 4/30/00
[The following table was depicted as a bar graph in the printed material.]
Fund S&P 500 Index
--------------------------------------------------------------------------------
Technology 32% 33%
Consumer cyclical 17% 12%
Consumer non-cyclical 18% 16%
Industrial 12% 8%
Financial 11% 13%
Industry sectors in the following financial statements are based upon the
standard industrial classificiations (SIC) as published by the U.S. Office of
Management and Budget. The sector classifications used on this page are based
upon the Advisor's defined criteria as used in the investment process.
Sector breakdowns are calculated as a percentage of the total portfolio. Because
the Fund is actively managed, there can be no guarantee the Fund will continue
to maintain this sector breakdown in the future.
SOLD
--------------------------------------------------------------------------------
Nabisco, McDonald's and Associates First Capital
Despite solid fundamentals, investors focused on higher growth companies during
the period. With no catalyst in sight to reverse this trend, we sold our entire
position in these three companies to realize a tax loss.
3
<PAGE>
Semiannual Report: Stein Roe Advisor Tax-Managed Growth Fund
--------------------------------------------------------------------------------
Performance Information
--------------------------------------------------------------------------------
Average Annual Total Returns as of 4/30/00
<TABLE>
<CAPTION>
A B C E F Z
Without With Without With Without With Without With Without With Without
Sales Sales Sales Sales Sales Sales Sales Sales Sales Sales Sales
Charge Charge Charge Charge Charge Charge Charge Charge Charge Charge Charge
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Six months (cumulative) 9.77% 3.46% 9.39% 4.39% 9.33% 8.33% 9.92% 4.42% 9.78% 4.78% 9.87%
--------------------------------------------------------------------------------------------------------------------------------
1 year 16.41 9.72 15.58 10.58 15.52 14.52 16.51 10.69 15.93 10.93 16.71
--------------------------------------------------------------------------------------------------------------------------------
Life of Fund 20.67 18.55 19.76 19.17 19.74 19.74 20.61 18.77 19.78 19.79 20.79
--------------------------------------------------------------------------------------------------------------------------------
Average Annual Total Returns as of 3/31/00
<CAPTION>
A B C E F Z
Without With Without With Without With Without With Without With Without
Sales Sales Sales Sales Sales Sales Sales Sales Sales Sales Sales
Charge Charge Charge Charge Charge Charge Charge Charge Charge Charge Charge
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Six months (cumulative) 20.95% 13.99% 20.38% 15.38% 20.45% 19.45% 21.06% 15.01% 20.82% 15.82% 21.03%
--------------------------------------------------------------------------------------------------------------------------------
1 year 24.07 16.94 23.16 18.16 23.16 22.16 24.19 17.98 23.54 18.54 24.39
--------------------------------------------------------------------------------------------------------------------------------
Life of Fund 22.84 20.63 21.89 21.30 21.89 21.89 22.78 20.86 21.91 21.32 22.94
--------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Inception for all share classes is 12/31/96 except for Class Z shares, which
commenced on 1/11/99. Past performance cannot predict future investment results.
Returns and value of an investment will vary, resulting in a gain or loss on
sale. All results shown assume reinvestment of distributions. The "with sales
charge" returns include the maximum 5.75% sales charge for Class A shares, 5%
for Class E shares and the appropriate Class B and Class F contingent deferred
sales charge for the holding period after purchase as follows: through first
year-5%, second year-4%, third year-3%, fourth year-3%, fifth year-2%, sixth
year-1%, thereafter-0% and the Class C contingent deferred sales charge of 1%
for the first year only.
Performance for different share classes will vary based on differences in sales
charges and fees associated with each class.
Performance results reflect any voluntary waivers or reimbursement of Fund
expenses by the Advisor or its affiliates. Absent these waivers or reimbursement
arrangements, performance results would have been lower.
Class Z shares performance information includes returns of the Fund's Class A
shares (as its expense structure more closely resembles that of the newer class)
for periods prior to the inception of the newer class shares. These Class A
share returns were not restated to reflect any expense differential (e.g., Rule
12b-1 fees) between Class A shares and Class Z shares. Had the expense
differential been reflected, the returns for the periods prior to the inception
of the newer class shares would have been higher.
4
<PAGE>
Semiannual Report: Stein Roe Advisor Tax-Managed Growth Fund II
--------------------------------------------------------------------------------
Portfolio Managers' Report
--------------------------------------------------------------------------------
A volatile start for the Fund
The Fund's launch date coincided with a downturn in the stock market, which was
particularly severe for the "new economy" technology and telecommunications
stocks. At inception, these stocks were heavily weighted in the portfolio. As a
result, Stein Roe Advisor Tax-Managed Growth Fund II Class A shares returned
negative 1.42%, without a sales charge, for the period from March 7, 2000
through April 30, 2000. New cash flows into the Fund have been used to add more
old economy stocks to the Fund's mix, thereby broadening its diversification.
The Fund made no taxable distributions to shareholders.
Managed for attractive growth potential before and after taxes
In keeping with the Fund's disciplined investment strategy, which favors stocks
with low dividends, stresses longer holding periods and considers the after-tax
impact of all portfolio decisions, we have emphasized stocks in a variety of
sectors:
o Technology
Although the final weeks of the quarter were hard on technology leaders such as
Motorola, Microsoft and Cisco, we continue to believe that their fundamental
business prospects remain solid. We are especially bullish on prospects for
semiconductor companies and for selected companies that provide services to
support Internet companies.
o Financial services
Although interest rate concerns took their toll on financial stocks, we have
invested in well-managed companies that are leaders in their chosen business
lines, and are attractively valued in the current market. All of the companies
have been only minimally affected by the interest rate increases to date, and
are well-positioned to prosper in future years. We believe they will be
rewarding investments for our shareholders once current interest rates fears
subside. They include Chase Manhattan and Wells Fargo (1.8% and 1.4% of net
assets, respectively) in the banking sector; Federal National Mortgage (Fannie
Mae) and Citigroup (2.4% and 2.3% of net assets, respectively) in financial
services; and American International Group (2.3% of net assets) as the premier
company in the insurance sector.
o Consumer
Despite the economic cross currents, the large and healthy consumer sector
continues to represent an area of fertile investment opportunity. Consumer
non-cyclicals, primarily drugs and health care, represent the Fund's largest
holdings. In addition to benefiting from the "graying of America," the health
care stocks are relatively immune to the Fed's efforts to slow consumer
spending. While rising interest rates are a
Net asset value as of 4/30/00
Class A $11.83
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Class B $11.83
--------------------------------------------------------------------------------
Class C $11.82
--------------------------------------------------------------------------------
Class Z $11.84
--------------------------------------------------------------------------------
Top 10 holdings as of 4/30/00
1. Cisco Systems 4.4%
--------------------------------------------------------------------------------
2. Intel Corp. 3.6%
--------------------------------------------------------------------------------
3. EMC Corp. 3.3%
--------------------------------------------------------------------------------
4. Illinois Tool Works 3.1%
--------------------------------------------------------------------------------
5. Motorola, Inc. 3.1%
--------------------------------------------------------------------------------
6. Guidant Corp. 3.0%
--------------------------------------------------------------------------------
7 General Electric Co. 2.9%
--------------------------------------------------------------------------------
8. AES 2.8%
--------------------------------------------------------------------------------
9. Warner-Lambert 2.8%
--------------------------------------------------------------------------------
10. Sun Microsystems 2.8%
--------------------------------------------------------------------------------
Holdings are calculated as a percentage of total net assets. Because the Fund is
actively managed, there can be no guarantee the Fund will continue to maintain
these holdings in the future.
5
<PAGE>
Semiannual Report: Stein Roe Advisor Tax-Managed Growth Fund II
--------------------------------------------------------------------------------
Portfolio Managers' Report (continued)
--------------------------------------------------------------------------------
negative for consumer cyclicals, our exposure is in the faster-growing retailers
and media companies whose earnings should continue to achieve above-average
growth as long as the economy slows to a soft landing without a recession.
Looking ahead
We are optimistic that our blend of high-quality, large-cap growth stocks and
selected opportunity stocks, coupled with our emphasis on tax efficiency, is
positioned to generate attractive long-term returns for our shareholders. Our
priority is to make the best investment decisions we can and to to pursue
tax-management strategies aimed at helping our shareholders keep more of what
they earn.
/s/ William M. Hughes /s/ Steve Berman
William M. Hughes and Steve Berman are senior equity analysts at Stein Roe &
Farnham Incorporated and are members of the eight-person investment management
team for Stein Roe Advisor Tax-Managed Growth Fund II.
An investment in the Fund may present certain risks, including stock market
fluctuations due to economic and business developments. The Fund expects to
distribute taxable income and capital gains from time to time, and management's
ability to use certain tax-management techniques may be curtailed or eliminated
in the future.
--------------------------------------------------------------------------------
Performance Information
--------------------------------------------------------------------------------
Cumulative Annual Total Returns as of 4/30/00
<TABLE>
<CAPTION>
A B C Z
Inception date(1) 3/7/00 3/7/00 3/7/00 3/7/00 3/7/00 3/7/00 3/7/00
--------------------------------------------------------------------------------------------
Without With Without With Without With Without
Sales Sales Sales Sales Sales Sales Sales
Charge Charge Charge Charge Charge Charge Charge
--------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Life of Fund (1.42)% (7.09)% (1.42)% (6.35)% (1.50)% (2.49)% (1.33)%
--------------------------------------------------------------------------------------------
Cumulative Annual Total Returns as of 3/31/00
<CAPTION>
A B C Z
Without With Without With Without With Without
Sales Sales Sales Sales Sales Sales Sales
Charge Charge Charge Charge Charge Charge Charge
--------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Life of Fund 4.50% (1.51)% 4.50% (0.50)% 4.42% 3.42% 4.50%
--------------------------------------------------------------------------------------------
</TABLE>
(1) Investment operations commenced on 3/7/00.
Past performance cannot predict future investment results. Returns and
value of an investment will vary, resulting in a gain or loss on sale. All
results shown assume reinvestment of distributions. The "with sales
charge" returns include the maximum 5.75% sales charge for Class A shares,
and the appropriate Class B contingent deferred sales charge for the
holding period after purchase as follows: through first year-5%, second
year-4%, third year-3%, fourth year-3%, fifth year-2%, sixth year-1%,
thereafter-0% and the Class C contingent deferred sales charge of 1% for
the first year only.
Performance for different share classes will vary based on differences in
sales charges and fees associated with each class.
Performance results reflect any voluntary waivers or reimbursement of Fund
expenses by the Advisor or its affiliates. Absent these waivers or
reimbursement arrangements, performance results would have been lower.
Top five sector breakdowns as of 4/30/00
[The following table was depicted as a bar chart in the printed material.]
Fund S&P 500 Index
--------------------------------------------------------------------------------
Technology 32% 33%
Consumer non-cyclicals 19% 16%
Financial 13% 13%
Utilities 12% 8%
Consumer cyclicals 12% 12%
Industry sectors in the following financial statements are based upon the
standard industrial classifications (SIC) as published by the U.S. Office of
Management and Budget. The sector classifications used on this page are based
upon the Advisor's defined criteria as used in the investment process.
Sector breakdowns are calculated as a percentage of total investments. Because
the Fund is actively managed, there can be no guarantee the Fund will continue
to maintain this breakdown in the future.
6
<PAGE>
Semiannual Report: Stein Roe Advisor Tax-Managed Value Fund
--------------------------------------------------------------------------------
Portfolio Manager's Report
--------------------------------------------------------------------------------
A disappointing period for value stocks
After suffering one of the worst years ever in 1999, value stocks finally began
to show some life near the end of the period. However, the upturn was too
little, too late to boost the performance of Stein Roe Advisor Tax-Managed Value
Fund. Class A shares returned negative 1.03%, without a sales charge, for the
six months ended April 30, 2000. That was lower than the S&P 500, which gained
7.18%, and also lower than the S&P 500 Barra/Value Index, which gained 2.70%
over the same period. The Fund paid no taxable distributions to shareholders
during the six-month period.
Downturn with a silver lining
Although the Fund's disappointing performance was the direct result of
investors' preference for growth stocks, especially large technology stocks,
there were a few bright spots in the value camp during the period. The Fund's
investments in energy stocks did well, which raised the weighting of the
position in the portfolio. Although the Organization of Petroleum Exporting
Countries (OPEC) has started pumping more oil recently, they have done a good
job of managing production. That has helped keep supply and demand in line, and
energy stocks have responded favorably.
The market's recent downturn has presented the Fund with an opportunity to
invest in some very high-quality companies that usually fall outside the value
investor's realm because they typically sell at a premium to the market. For
example, we have invested in consumer staples companies such as Procter &
Gamble, Pepsi, Bestfoods and Sara Lee (2.7%, 1.8%, 2.3% and 1.8% of net assets,
respectively) as well as pharmaceutical companies Merck, Abbott Labs and
Schering-Plough (2.1%, 2.6% and 2.1% of net assets, respectively) at very
attractive prices. These companies have a history of stable earnings independent
of the health of the economy -- a plus for the portfolio as this economic
expansion appears to be heading into extra innings.
Financial exposure reduced
In order to build our positions in consumer staples and pharmaceuticals, we
reduced our exposure to technology stocks and to the financial sector. We are
concerned that it is late in the credit cycle; and with an excess of capacity,
we fear that financial companies could experience reduced profitability if they
move down the quality scale and/or lower their standards in order to write new
loans.
Net asset value as of 4/30/00
Class A $10.53
--------------------------------------------------------------------------------
Class B $10.47
--------------------------------------------------------------------------------
Class C $10.47
--------------------------------------------------------------------------------
Class Z $10.53
--------------------------------------------------------------------------------
Top five sector breakdowns as of 4/30/00
[The following table was depicted as a bar chart in the printed material.]
Fund S&P 500 Index
--------------------------------------------------------------------------------
Technology 32% 33%
Consumer non-cyclicals 19% 16%
Financial 13% 13%
Consumer cyclicals 12% 12%
Utilities 12% 10%
Industry sectors in the following financial statements are based upon the
standard industrial classifications (SIC) as published by the U.S. Office of
Management and Budget. The sector classifications used on this page are based
upon the Advisor's defined criteria as used in the investment process.
Sector breakdowns are calculated as a percentage of total net assets. Because
the Fund is actively managed, there can be no guarantee the Fund will continue
to maintain this breakdown in the future.
BOUGHT
--------------------------------------------------------------------------------
Procter & Gamble (2.7% of net assets)
Procter & Gamble's price was slashed in the wake of an advance announcement that
third quarter earnings would fall short of the firm's earlier estimates. We
believe investor reaction was more severe than the company's short fall merited,
and we bought up shares on the belief that Procter & Gamble's main businesses
are sound.
7
<PAGE>
Semiannual Report: Stein Roe Advisor Tax-Managed Value Fund
--------------------------------------------------------------------------------
Portfolio Manager's Report (continued)
--------------------------------------------------------------------------------
Looking ahead
Investors spent most of last year bidding up prices on stocks that made great
stories but did not necessarily have the fundamentals to support their extremely
high valuations. Now that investors seem to have refocused on valuations, we
believe that our portfolio of stocks is favorably positioned. Many are still
selling at large discounts to the market, yet their business prospects appear
intact. As a result, we believe the outlook for the portfolio is strong in the
period ahead.
/s/ Scott Schermerhorn
Scott Schermerhorn is a senior vice president of Stein Roe & Farnham and
portfolio manager of the Fund.
An investment in the Fund may present certain risks, including stock market
fluctuations due to economic and business developments. The Fund expects to
distribute taxable income and capital gains from time to time, and management's
ability to use certain tax-management techniques may be curtailed or eliminated
in the future.
--------------------------------------------------------------------------------
Performance Information
--------------------------------------------------------------------------------
Average Annual Total Returns as of 4/30/00
<TABLE>
<CAPTION>
A B C Z
Inception date 6/1/99 6/1/99 6/1/99 6/1/99 6/1/99 6/1/99 6/1/99
---------------------------------------------------------------------------------------------
Without With Without With Without With Without
Sales Sales Sales Sales Sales Sales Sales
Charge Charge Charge Charge Charge Charge Charge
---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Six months (cumulative) (1.03)% (6.72)% (1.32)% (6.25)% (1.41)% (2.40)% (1.22)%
---------------------------------------------------------------------------------------------
Life of Fund (12.25) (17.30) (12.75) (17.11) (12.83) (13.71) (12.33)
---------------------------------------------------------------------------------------------
Average Annual Total Returns as of 3/31/00
<CAPTION>
A B C Z
Without With Without With Without With Without
Sales Sales Sales Sales Sales Sales Sales
Charge Charge Charge Charge Charge Charge Charge
---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Six months (cumulative) (0.19)% (5.93)% (0.58)% (5.55)% (0.58)% (1.57)% (0.29)%
---------------------------------------------------------------------------------------------
Life of Fund (13.75) (18.71) (14.25) (18.54) (14.25) (15.11) (13.83)
---------------------------------------------------------------------------------------------
</TABLE>
Past performance cannot predict future investment results. Returns and value of
an investment will vary, resulting in a gain or loss on sale. All results shown
assume reinvestment of distributions. The "with sales charge" returns include
the maximum 5.75% sales charge for Class A shares, the appropriate Class B
contingent deferred sales charge for the holding period after purchase as
follows: through first year-5%, second year-4%, third year-3%, fourth year-3%,
fifth year-2%, sixth year-1%, thereafter-0% and the Class C contingent deferred
sales charge of 1% for the first year only.
Performance for different share classes will vary based on differences in sales
charges and fees associated with each class.
Performance results reflect any voluntary waivers or reimbursement of Fund
expenses by the Advisor or its affiliates. Absent these waivers or reimbursement
arrangements, performance results would have been lower.
Top 10 holdings as of 4/30/00
1. Procter & Gamble 2.7%
--------------------------------------------------------------------------------
2. Walt Disney Productions 2.6%
--------------------------------------------------------------------------------
3. Abbott Labs 2.6%
--------------------------------------------------------------------------------
4. United Healthcare 2.5%
--------------------------------------------------------------------------------
5. Bestfoods 2.3%
--------------------------------------------------------------------------------
6. Nike 2.3%
--------------------------------------------------------------------------------
7. Amerada Hess 2.3%
--------------------------------------------------------------------------------
8. Royal Duch Petroleum 2.2%
--------------------------------------------------------------------------------
9. Merck & Co 2.1%
--------------------------------------------------------------------------------
10. Schering-Plough Corp. 2.1%
--------------------------------------------------------------------------------
Holdings are calculated as a percentage of total net assets. Because the Fund is
actively managed, there can be no guarantee the Fund will continue to maintain
these holdings in the future.
SOLD/BOUGHT
--------------------------------------------------------------------------------
BancOne (2.0% of net assets)
When the company announced that it was going to miss its fourth quarter earnings
estimate because of troubles in its First USA credit card unit, we sold our
position. However, when the company brought in a new CEO, we bought the company
back at a lower price on the belief that new management could be the catalyst
for a rebound.
8
<PAGE>
--------------------------------------------------------------------------------
Investment Portfolio
--------------------------------------------------------------------------------
Stein Roe Advisor Tax-Managed Growth Fund
April 30, 2000 (Unaudited)
(In thousands)
Common Stocks - 94.7% Shares Value
--------------------------------------------------------------------------------
FINANCE, INSURANCE & REAL ESTATE - 12.2%
Depository Institutions - 2.8%
Chase Manhattan Corp. 196 $ 14,102
Wells Fargo & Co. 145 5,942
------------
20,044
============
Insurance Carriers - 5.0%
American International Group, Inc. 167 18,371
Citigroup, Inc. 296 17,608
------------
35,979
============
Investment Companies - 2.0%
Standard and Poor's Depositary Receipts 98 14,253
============
Nondepository Credit Institutions - 2.4%
Fannie Mae 291 17,545
============
--------------------------------------------------------------------------------
MANUFACTURING - 48.8%
Chemicals & Allied Products - 8.0%
Bristol-Myers Squibb Co. 266 13,954
Eli Lilly & Co. 140 10,824
Schering-Plough Corp. 349 14,069
Warner-Lambert Co. 165 18,779
------------
57,626
============
Communications Equipment - 4.6%
Motorola, Inc. 172 20,467
Tellabs, Inc. (a) 231 12,662
------------
33,129
============
Electrical Industrial Equipment - 3.4%
General Electric Co. (a) 156 24,605
============
Electronic Components - 3.6%
Intel Corp. 202 25,616
============
Machinery & Computer Equipment - 17.8%
American Standard Cos., Inc. (a) 376 15,420
Applied Materials, Inc. (a) 196 19,955
Cisco Systems, Inc. (a) 445 30,830
Dover Corp. 320 16,275
EMC Corp. (a) 165 22,925
Hewlett-Packard Co. 94 12,690
International Business Machines Corp. 89 9,879
------------
127,974
============
Measuring & Analyzing Instruments - 4.8%
Guidant Corp. 347 19,909
Medtronic, Inc. 278 14,459
------------
34,368
============
Miscellaneous Manufacturing - 2.6%
Tyco International Ltd. 408 18,743
============
Petroleum Refining - 1.6%
BP Amoco PLC ADR 225 11,491
============
Rubber & Plastic - 2.4%
Illinois Tool Works, Inc. 273 17,489
============
--------------------------------------------------------------------------------
RETAIL TRADE - 6.0%
Building, Hardware & Garden Supply - 1.5%
Home Depot, Inc. 195 10,938
============
General Merchandise Stores - 4.5%
Dollar General Corp. 758 17,338
Wal-Mart Stores, Inc. 268 14,829
------------
32,167
============
Services - 14.9%
Business Services - 4.1%
Internet Capital Group, Inc. 52 2,204
Sun Microsystems, Inc. (a) 173 15,942
Young & Rubicam, Inc. 205 11,416
------------
29,562
============
Computer Related Services - 4.5%
IMS Health, Inc. 1,140 19,455
Network Appliance, Inc. (a) 176 13,013
------------
32,468
============
Computer Software - 3.8%
Microsoft Corp. (a) 170 11,871
Novell, Inc. 370 7,261
Yahoo!, Inc. (a) 60 7,815
------------
26,947
============
Engineering, Accounting, Research &
Management - 0.8%
Genentech, Inc. (a) 51 5,967
============
Motion Pictures - 1.7%
Time Warner, Inc. 135 12,124
============
--------------------------------------------------------------------------------
TRANSPORTATION, COMMUNICATION,
ELECTRIC, GAS & SANITARY SERVICES - 12.8%
Broadcasting - 4.0%
AMFM, Inc. (a) 51 3,385
CBS Corp. 265 15,539
Clear Channel Communications, Inc. (a) 132 9,511
------------
28,435
============
Communications - 2.4%
McLeodUSA, Inc. Class A (a) 383 9,563
NEXTLINK Communications, Inc.
Class A (a) 90 7,588
------------
17,151
============
Electric Services - 9.1%
AES Corp. (a) 216 19,409
============
Telecommunication - 3.7%
Level 3 Communications, Inc.(a) 121 10,769
MCIWorldCom (a) 187 8,485
Sprint Corp. 120 7,380
------------
26,634
============
Total Common Stocks
(cost of $533,917)(b) 680,664
============
See notes to investment portfolio.
9
<PAGE>
--------------------------------------------------------------------------------
Investment Portfolio (continued)
--------------------------------------------------------------------------------
Stein Roe Advisor Tax-Managed Growth Fund (continued)
Par Value
--------------------------------------------------------------------------------
Short Term Obligations - 4.3%
--------------------------------------------------------------------------------
Repurchase agreement with SBC Warburg, LTD, dated 4/28/00, due 5/01/00 at 5.71%,
collateralized by U.S. Treasury notes with various maturities to 2025, market
value
$31,756 (repurchase proceeds $31,055) $31,040 $ 31,040
============
Other Assets & Liabilities, Net - 1.0% 7,348
------------
Net Assets - 100.0% $ 719,052
============
(a) Non-income producing.
(b) Cost for federal income tax purposes is the same.
Acronym Name
---------- ------------------------------------
ADR American Depositary Receipt
See notes to investment portfolio.
Stein Roe Advisor Tax-Managed Growth Fund II
April 30, 2000 (Unaudited)
(In thousands)
Common Stocks - 97.4% Shares Value
--------------------------------------------------------------------------------
FINANCE, INSURANCE & REAL ESTATE - 12.5%
Depository Institutions - 3.1%
Chase Manhattan Corp. 2 $ 162
Wells Fargo & Co. 3 128
------------
290
============
Insurance Carriers - 4.5%
American International Group, Inc. 2 201
Citigroup, Inc. 4 211
------------
412
============
Nondepository Credit Institutions - 4.9%
Associates First Capital Corp. 10 233
Fannie Mae 4 219
------------
452
============
--------------------------------------------------------------------------------
MANUFACTURING - 49.9%
Chemicals & Allied Products - 9.9%
Bristol-Myers Squibb Co. 4 206
Eli Lilly & Co. 3 247
Schering-Plough Corp. 5 201
Warner-Lambert Co. 2 256
------------
910
============
Communications Equipment - 5.4%
Motorola, Inc. 2 279
Tellabs, Inc. (a) 4 214
------------
493
============
Electrical Industrial Equipment - 2.9%
General Electric Co. (a) 2 265
============
Electronic Components - 3.6%
Intel Corp. 3 330
============
Machinery & Computer Equipment - 15.4%
Applied Materials, Inc. (a) 2 240
Cisco Systems, Inc. (a) 6 405
Dover Corp. 4 203
EMC Corp. (a) 2 302
Hewlett-Packard Co. 1 124
International Business Machines Corp. 1 144
------------
1,418
============
Measuring & Analyzing Instruments - 5.2%
Guidant Corp. 5 276
Medtronic, Inc. 4 205
------------
481
============
Miscellaneous Manufacturing - 2.2%
Tyco International Ltd. 4 203
============
Petroleum Refining - 2.3%
BP Amoco PLC ADR 4 214
============
Rubber & Plastic - 3.0%
Illinois Tool Works, Inc. 4 279
============
Retail Trade - 5.2%
Building, Hardware & Garden Supply - 1.7%
Home Depot, Inc. 3 156
============
See notes to financial statements.
10
<PAGE>
--------------------------------------------------------------------------------
Investment Portfolio (continued)
--------------------------------------------------------------------------------
Stein Roe Advisor Tax-Managed Growth Fund II (continued)
Common Stocks - (Continued) Shares Value
--------------------------------------------------------------------------------
General Merchandise Stores - 3.5%
Dollar General Corp. 6 $ 144
Wal-Mart Stores, Inc. 3 180
------------
324
============
--------------------------------------------------------------------------------
SERVICES - 14.3%
Business Services - 3.1%
Internet Capital Group, Inc. 1 25
Sun Microsystems, Inc. (a) 3 256
------------
281
============
Computer Related Services - 4.1%
IMS Health, Inc. 13 230
Network Appliance, Inc. (a) 2 146
------------
376
============
Computer Software - 4.0%
Microsoft Corp. (a) 1 98
Novell, Inc. 5 92
Yahoo!, Inc. (a) 1 180
------------
370
============
Engineering, Accounting, Research &
Management - 0.5%
Genentech, Inc. (a) 47
============
Motion Pictures - 2.7%
Time Warner, Inc. 3 247
============
--------------------------------------------------------------------------------
TRANSPORTATION, COMMUNICATION, ELECTRIC,
GAS & SANITARY SERVICES - 15.5%
Broadcasting - 4.2%
AMFM, Inc. (a) 3 191
Univision Communications, Inc. Class A (a) 2 198
------------
389
============
Communications - 3.8%
Focal Communications Corp. (a) 6 185
NEXTLINK Communications, Inc. Class A (a) 2 161
------------
346
============
Electric Services - 2.8%
AES Corp. (a) 3 261
============
Telecommunication - 4.7%
Level 3 Communications, Inc. (a) 2 184
Sprint Corp. 4 247
------------
431
============
Total Common Stocks
(Cost of $9,130)(b) 8,975
============
Par Value
--------------------------------------------------------------------------------
Short Term Obligations - 7.2%
--------------------------------------------------------------------------------
Repurchase agreement with SBC Warburg, LTD, dated 4/28/00, due 5/01/00 at 5.71%,
collateralized by U.S. Treasury notes with various maturities to 2025, market
value
$675 (repurchase proceeds $660) $ 660 $ 660
============
Other Assets & Liabilities, Net - (4.6%) (427)
============
Net Assets - 100.0% $ 9,208
============
(a) Non-income producing.
(b) Cost for federal income tax purposes is the same.
Acronym Name
---------- ------------------------------------
ADR American Depositary Receipt
See notes to financial statements.
11
<PAGE>
--------------------------------------------------------------------------------
Investment Portfolio
--------------------------------------------------------------------------------
Stein Roe Advisor Tax-Managed Value Fund
April 30, 2000 (Unaudited)
(In thousands)
Common Stocks - 95.0% Shares Value
--------------------------------------------------------------------------------
FINANCE, INSURANCE & REAL ESTATE - 13.1%
Depository Institutions - 6.3%
Banc One Corp. 30 $ 915
Firstar Corp. 23 577
FleetBoston Financial Corp. 16 567
Wells Fargo & Co. 19 768
------------
2,827
============
Insurance Carriers - 4.9%
MetLife, Inc. (a) 17 288
United Healthcare Corp. 17 1,114
XL Capital Ltd. Class A 17 814
------------
2,216
============
Nondepository Credit Institutions - 1.9%
Freddie Mac 19 859
============
--------------------------------------------------------------------------------
MANUFACTURING - 54.4%
Chemicals & Allied Products - 13.0%
Abbott Laboratories 30 1,165
Dow Chemical Co. 6 644
Merck & Co., Inc. 14 966
Procter & Gamble Co. 20 1,205
Schering-Plough Corp. 24 951
Sherwin-Williams Co. 37 925
------------
5,856
============
Communications Equipment - 1.1%
Motorola, Inc. 4 500
============
Electrical Industrial Equipment - 1.1%
Emerson Electric Co. 9 488
============
Food & Kindred Products - 10.3%
Bestfoods 21 1,050
General Mills, Inc. 16 579
Nabisco Holdings Corp. 16 597
PepsiCo, Inc. 22 807
Philip Morris Companies, Inc. 36 783
Sara Lee Corp. 55 824
------------
4,640
============
Household Appliances - 0.8%
Whirlpool Corp. 6 358
============
Machinery & Computer Equipment - 2.7%
Compaq Computer Corp. 17 509
Ingersoll Rand Co. 15 718
------------
1,227
============
Measuring & Analyzing Instruments - 3.2%
Honeywell International, Inc. 12 655
Xerox Corp. 29 775
------------
1,430
============
Paper Products - 2.9%
International Paper Co. 17 617
Kimberly Clark Corp. 12 720
------------
1,337
============
Petroleum Refining - 8.8%
Amerada Hess Corp. 16 1,037
Chevron Corp. 6 519
Royal Dutch Petroleum Co. 17 998
Texaco, Inc. 13 649
USX-Marathon Group 33 765
------------
3,968
============
Primary Metal - 1.6%
Nucor Corp. 17 740
============
Rubber & Plastic - 2.3%
Nike, Inc., Class B 24 1,043
============
Stone, Clay, Glass & Concrete - 1.6%
Minnesota Mining & Manufacturing Co. 8 709
============
Transportation Equipment - 5.0%
Boeing Co. 22 885
Delphi Automotive Systems Corp. 40 756
United Technologies Corp. 10 609
------------
2,250
============
--------------------------------------------------------------------------------
MINING & ENERGY - 4.6%
Crude Petroleum & Natural Gas - 2.0%
Anadarko Petroleum Corp. 19 817
Burlington Resources, Inc. 2 71
------------
888
============
Gold & Silver Mining - 1.1%
Barrick Gold Corp. 30 499
============
Oil & Gas Field Services - 1.5%
Diamond Offshore Drilling, Inc. 17 693
============
--------------------------------------------------------------------------------
RETAIL TRADE - 6.4%
Apparel & Accessory Stores - 1.1%
Nordstrom, Inc. 19 520
============
Food Stores - 2.0%
Albertson's, Inc. 27 886
============
General Merchandise Stores - 0.8%
Federated Department Stores, Inc. (a) 10 347
============
Miscellaneous Retail - 1.4%
Office Depot, Inc. (a) 60 633
============
Restaurants - 1.1%
McDonald's Corp. 14 522
============
--------------------------------------------------------------------------------
SERVICES - 7.4%
Computer Related Services - 3.9%
Electronic Data Systems Corp. 12 853
First Data Corp. 18 891
------------
1,744
============
Health Services - 0.9%
Columbia/HCA Healthcare Corp. 15 429
============
Motion Pictures - 2.6%
The Walt Disney Co. 27 1,169
============
See notes to investment portfolio.
12
<PAGE>
--------------------------------------------------------------------------------
Investment Portfolio (continued)
--------------------------------------------------------------------------------
Common Stocks - (Continued) Shares Value
--------------------------------------------------------------------------------
TRANSPORTATION, COMMUNICATION,
ELECTRIC, GAS & SANITARY SERVICES - 9.1%
Electric Services - 3.2%
Entergy Corp. 18 $ 455
PG&E Corp. 15 386
Southern Co. 24 594
------------
1,435
============
Railroad - 1.0%
Union Pacific Corp. 11 455
============
Telecommunication - 4.9%
AT&T Corp. 16 747
MCIWorldCom (a) 16 722
US West, Inc. 11 755
------------
2,224
============
Total Common Stocks
(cost of $41,714) 42,892
============
Short Term Obligations - 3.3% Par
--------------------------------------------------------------------------------
Repurchase agreement with SBC Warburg, LTD, dated 4/28/00, due 5/01/00 at 5.71%,
collateralized by U.S. Treasury notes with various maturities to 2025, market
value
$1,522 (repurchase proceeds $1,489) $ 1,488 1,488
============
Other Assets & Liabilities, Net - 1.7% 779
============
Net Assets - 100.0% $ 45,159
============
(a) Non-income producing.
(b) Cost for federal income tax purposes is the same.
See notes to financial statements.
13
<PAGE>
--------------------------------------------------------------------------------
Statement of Assets and Liabilities
--------------------------------------------------------------------------------
April 30, 2000 (Unaudited)
(In thousands except for per share amounts and footnotes)
<TABLE>
<CAPTION>
SRATMGF SRATMGFII
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Assets
Investments at value $680,664 $ 8,975
Short-term obligations 31,040 660
-------- --------
711,704 9,635
Receivable for:
Fund shares sold $6,500 $ 598
Investments sold 5,344 340
Dividends 333 5
Interest 15 --
Expense reimbursement due from Advisor/Administrator -- 15
Other 137 1
------ -----
Total Assets 12,329 959
-------- --------
724,033 10,594
Liabilities
Payable for:
Investments purchased 3,410 1,350
Fund shares repurchased 731 --
Accrued:
Management fee 371 5
Administration fee 233 1
Distribution fee -- Class B 18 --
Distribution fee -- Class C 5 --
Transfer agent fee 184 1
Bookkeeping fee 21 3
Deferred Trustee fees 1 --
Other 7 26
------ -----
Total Liabilities 4,981 1,386
-------- --------
Net Assets $719,052 $ 9,208
======== ========
Net asset value & redemption price per share -- Class A
($144,093/7,637), ($769/65) and ($10,233/972), respectively $ 18.87(a) $ 11.83(a)
======== ========
Maximum offering price per share -- Class A
($18.87/0.9425), (11.83/0.9425) and ($10.53/0.9425), respectively $ 20.02(b) $ 12.55(b)
======== ========
Net asset value & offering price per share -- Class B
($477,620/25,963), ($3,502/296) and ($28,728/2,745), respectively $ 18.40(a) $ 11.83(a)
======== ========
Net asset value & offering price per share -- Class C
($74,560/4,054), ($447/38) and ($6,197/592), respectively $ 18.39(a) $ 11.82(a)
======== ========
Net asset value & redemption price per share -- Class E
($8,798/467) $ 18.84 N/A
======== ========
Maximum offering price per share -- Class E
($18.84/0.9500) $ 19.73(b) N/A
======== ========
Net asset value & offering price per share -- Class F
($12,683/689) $ 18.41(a) N/A
======== ========
Net asset value, offering & redemption price per share --
Class Z ($1,298/69), ($4,490/379) and ($1/(c)), respectively $ 18.93 $ 11.84
======== ========
Composition of Net Assets
Capital paid in $592,095 $ 9,351
Accumulated net investment loss (4,011) (2)
Accumulated net realized gain (loss) (15,779) 14
Net unrealized appreciation (depreciation) 146,747 (155)
-------- --------
$719,052 $ 9,208
======== ========
<CAPTION>
SRATMVF
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Assets
Investments at value $ 42,892
Short-term obligations 1,488
--------
44,380
Receivable for:
Fund shares sold $ 854
Investments sold 553
Dividends 45
Interest 1
Expense reimbursement due from Advisor/Administrator 14
Other 1
------
Total Assets 1,468
--------
45,848
Liabilities
Payable for:
Investments purchased 426
Fund shares repurchased 119
Accrued:
Management fee 30
Administration fee 10
Distribution fee -- Class B 4
Distribution fee -- Class C 1
Transfer agent fee 9
Bookkeeping fee 2
Deferred Trustee fees --
Other 88
------
Total Liabilities 689
--------
Net Assets $ 45,159
========
Net asset value & redemption price per share -- Class A
($144,093/7,637), ($769/65) and ($10,233/972), respectively $ 10.53(a)
========
Maximum offering price per share -- Class A
($18.87/0.9425), (11.83/0.9425) and ($10.53/0.9425), respectively $ 11.17(b)
========
Net asset value & offering price per share -- Class B
($477,620/25,963), ($3,502/296) and ($28,728/2,745), respectively $ 10.47(a)
========
Net asset value & offering price per share -- Class C
($74,560/4,054), ($447/38) and ($6,197/592), respectively $ 10.46(a)
========
Net asset value & redemption price per share -- Class E
($8,798/467) N/A
========
Maximum offering price per share -- Class E
($18.84/0.9500) N/A
========
Net asset value & offering price per share -- Class F
($12,683/689) N/A
========
Net asset value, offering & redemption price per share --
Class Z ($1,298/69), ($4,490/379) and ($1/(c)), respectively $ 10.52
========
Composition of Net Assets
Capital paid in $ 47,423
Accumulated net investment loss (49)
Accumulated net realized gain (loss) (3,393)
Net unrealized appreciation (depreciation) 1,178
--------
$ 45,159
========
</TABLE>
(a) Redemption price per share is equal to net asset value less any applicable
contingent deferred sales charge.
(b) On sales of $50,000 or more the offering price is reduced.
(c) Rounds to less than one. See notes to financial statements.
See notes to financial statements.
14
<PAGE>
--------------------------------------------------------------------------------
Statement of Operations
--------------------------------------------------------------------------------
For the period ended April 30, 2000 (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
SRATMGF SRATMGFII (a)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Investment Income
Dividends $ 1,645 $ 5
Interest 738 6
-------- --------
2,383 11
Expenses
Management fee $ 1,797 $ 7
Administration fee 1,184 2
Service fee --
Class A 156 (b)
Class B 494 (b)
Class C 78 (b)
Class E 11
Class F 15
Distribution fee -- Class A -- --
Distribution fee -- Class B 1,471 1
Distribution fee -- Class C 232 (b)
Distribution fee -- Class E 4 --
Distribution fee -- Class F 39 --
Transfer agent fee 739 2
Bookkeeping fee 108 4
Trustees fee 11 1
Custodian fee 13 1
Audit fee 10 5
Legal fee -- 1
Registration fee 19 17
Reports to shareholders 7 1
Other -- --
------- -------
6,388 42
Fees and expenses waived or borne by the Advisor/Administrator -- 6,388 (29) 13
------- -------- ------- --------
Net Investment Loss (4,005) (2)
-------- --------
Net Realized & Unrealized Gain (Loss) On Portfolio Positions
Net realized gain (loss) (3,940) 14
Net change in unrealized appreciation/depreciation
during the period 52,511 (155)
------- -------
Net Gain (Loss) 48,571 (141)
-------- --------
Increase (Decrease) in Net Assets from Operations $ 44,566 $ (143)
======== ========
<CAPTION>
SRATMVF
-----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Investment Income
Dividends $ 313
Interest 41
------
354
Expenses
Management fee $ 140
Administration fee 35
Service fee --
Class A 11
Class B 26
Class C 7
Class E
Class F
Distribution fee -- Class A 2
Distribution fee -- Class B 75
Distribution fee -- Class C 19
Distribution fee -- Class E --
Distribution fee -- Class F --
Transfer agent fee 50
Bookkeeping fee 13
Trustees fee 6
Custodian fee 5
Audit fee --
Legal fee 4
Registration fee 87
Reports to shareholders --
Other 3
------
483
Fees and expenses waived or borne by the Advisor/Administrator (80) 403
------ ------
Net Investment Loss (49)
------
Net Realized & Unrealized Gain (Loss) On Portfolio Positions
Net realized gain (loss) (2,737)
Net change in unrealized appreciation/depreciation
during the period 2,827
------
Net Gain (Loss) (2,737)
------
Increase (Decrease) in Net Assets from Operations $ 41
======
</TABLE>
(a) The Fund commenced investment operations on March 7, 2000.
See notes to financial statements.
15
<PAGE>
<PAGE>
--------------------------------------------------------------------------------
Statement of Changes in Net Assets
--------------------------------------------------------------------------------
(In thousands)
<TABLE>
<CAPTION>
(Unaudited) (Unaudited) (Unaudited)
Six months Period Six months Period
ended Year ended ended ended ended
April 30, October 31, April 30, April 30, October 31,
2000 1999 2000(d) 2000 1999(e)
-------------------------------------------------------------------------------------------------------------------------------
SRATMGF SRATMGFII SRATMVF
-------------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets 2000 (b) 1999 (a) 2000 2000 1999
<S> <C> <C> <C> <C> <C>
Operations:
Net investment loss $ (4,005) $ (2,621) $ (2) $ (49) $ (26)
Net realized gain (loss) (3,940) (1,673) 14 (2,737) (656)
Net change in unrealized appreciation/depreciation 52,511 74,131 (155) 2,827 (1,649)
--------- --------- --------- --------- ---------
Net Increase (Decrease) from Operations 44,566 69,837 (143) 41 (2,331)
--------- --------- --------- --------- ---------
Fund Share Transactions:
Receipts for shares sold--Class A 44,629 46,082 772 5,796 8,591
Cost of shares repurchased--Class A (7,905) (9,706) -- (3,081) (428)
--------- --------- --------- --------- ---------
36,724 36,376 772 2,715 8,163
--------- --------- --------- --------- ---------
Receipts for shares sold--Class B 167,790 157,970 3,578 16,780 16,075
Cost of shares repurchased--Class B (22,273) (23,672) (1) (2,857) (332)
--------- --------- --------- --------- ---------
145,517 134,298 3,577 13,923 15,743
--------- --------- --------- --------- ---------
Receipts for shares sold--Class C 26,234 24,882 460 3,063 4,454
Cost of shares repurchased--Class C (3,148) (3,326) -- (951) (46)
--------- --------- --------- --------- ---------
23,086 21,556 460 2,112 4,408
--------- --------- --------- --------- ---------
Receipts for shares sold--Class E 1,956 263 -- -- --
Cost of shares repurchased--Class E (1,419) (78) -- -- --
--------- --------- --------- --------- ---------
537 185 -- -- --
--------- --------- --------- --------- ---------
Receipts for shares sold--Class F 4,097 584 -- -- --
Cost of shares repurchased--Class F (2,536) (12) -- -- --
--------- --------- --------- --------- ---------
1,561 572 -- -- --
--------- --------- --------- --------- ---------
Receipts for shares sold--Class G -- 1,999 -- -- --
Cost of shares repurchased--Class G -- (56) -- -- --
--------- --------- --------- --------- ---------
-- 1,943 -- -- --
--------- --------- --------- --------- ---------
Receipts for shares sold--Class H -- 2,919 -- -- --
Cost of shares repurchased--Class H -- (15) -- -- --
--------- --------- --------- --------- ---------
-- 2,904 -- -- --
--------- --------- --------- --------- ---------
Receipts for shares sold--Class Z 1,271 1 4,542 1 2,700
Cost of shares repurchased--Class Z (c) -- -- (2,316) --
--------- --------- --------- --------- ---------
1,271 1 4,542 (2,315) 2,700
--------- --------- --------- --------- ---------
Net Increase from Fund Share Transactions 208,696 197,835 9,351 16,435 31,014
--------- --------- --------- --------- ---------
Total Increase 253,262 267,672 9,208 16,476 28,683
Net Assets
Beginning of period 465,790 198,118 -- 28,683 --
--------- --------- --------- --------- ---------
End of period $ 719,052 $ 465,790 $ 9,208 $ 45,159 $ 28,683
========= ========= ========= ========= =========
</TABLE>
(a) Class Z shares were initially offered on January 11, 1999.
(b) On February 28, 2000, Class B and Class F shares were merged into Class G
and Class H. Class G and Class H shares were then redesignated Class E and
Class F shares.
(c) Rounds to less than one.
(d) The Fund commenced investment operations on March 7, 2000.
(e) The Fund commenced investment operations on June 1, 1999.
See notes to financial statements.
16
<PAGE>
--------------------------------------------------------------------------------
Statement of Changes in Net Assets (continued)
--------------------------------------------------------------------------------
(In thousands)
<TABLE>
<CAPTION>
(Unaudited) (Unaudited) (Unaudited)
Six months Period Six months Period
ended Year ended ended ended ended
April 30, October 31, April 30, April 30, October 31,
2000 1999 2000(d) 2000 1999(e)
-----------------------------------------------------------------------------------------------------
SRATMGF SRATMGFII SRATMVF
-----------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets 2000 (b) 1999 (a) 2000 2000 1999
<S> <C> <C> <C> <C> <C>
Sold--Class A 2,383 2,882 65 566 747
Repurchased--Class A (420) (604) -- (302) (39)
------- ------- ------- ------- -------
1,963 2,278 65 264 708
------- ------- ------- ------- -------
Sold--Class B 9,122 10,095 296 1,655 1,410
Repurchased--Class B (1,215) (1,496) (c) (288) (32)
------- ------- ------- ------- -------
7,907 8,599 296 1,367 1,378
------- ------- ------- ------- -------
Sold--Class C 1,439 1,576 38 297 394
Repurchased--Class C (172) (212) -- (95) (4)
------- ------- ------- ------- -------
1,267 1,364 38 202 390
------- ------- ------- ------- -------
Sold--Class E 106 18 -- -- --
Repurchased--Class E (77) (5) -- -- --
------- ------- ------- ------- -------
29 13 -- -- --
------- ------- ------- ------- -------
Sold--Class F 227 38 -- -- --
Repurchased--Class F (141) (1) -- -- --
------- ------- ------- ------- -------
86 37 -- -- --
------- ------- ------- ------- -------
Sold--Class G -- 127 -- -- --
Repurchased--Class G -- (4) -- -- --
------- ------- ------- ------- -------
-- 123 -- -- --
------- ------- ------- ------- -------
Sold--Class H -- 189 -- -- --
Repurchased--Class H -- (1) -- -- --
------- ------- ------- ------- -------
-- 188 -- -- --
------- ------- ------- ------- -------
Sold--Class Z 69 (c) 379 (c) 225
Repurchased--Class Z (c) -- -- (225) --
------- ------- ------- ------- -------
69 (c) 379 (225) 225
------- ------- ------- ------- -------
</TABLE>
(a) Class Z shares were initially offered on January 11, 1999.
(b) On February 28, 2000, Class B and Class F shares were merged into Class G
and Class H. Class G and Class H shares were then redesignated Class E and
Class F shares.
(c) Rounds to less than one.
(d) The Fund commenced investment operations on March 7, 2000.
(e) The Fund commenced investment operations on June 1, 1999.
See notes to financial statements.
17
<PAGE>
--------------------------------------------------------------------------------
Notes to Financial Statements
--------------------------------------------------------------------------------
Note 1. Interim Financial Statements
In the opinion of management of Stein Roe Advisor Tax Managed Growth Fund
(SRATMGF), Stein Roe Advisor Tax Managed Growth Fund II (SRATMGF II) and Stein
Roe Advisor Tax Managed Value Fund (SRATMVF), each a series of Liberty Funds
Trust I (individually referred to as a Fund, collectively referred to as the
Funds) the accompanying financial statements contain all normal and recurring
adjustments necessary for the fair presentation of the financial position of the
Funds at April 30, 2000, and the results of their operations, changes in their
net assets and the financial highlights for the period ended April 30, 2000.
Note 2. Accounting policies
Organization
The Funds are diversified portfolios of a Massachusetts business trusts
registered under the Investment Company Act of 1940, as amended as open-end
management investment companies. The Funds' investment objective seeks to
maximize long-term capital growth while reducing shareholder exposure to taxes.
The Funds may issue an unlimited number of shares. SRATMGF offers six classes of
shares: Class A, Class B, Class C, Class E, Class F and Class Z. SRATMGF II and
SRATMVF each offer four classes of shares: Class A, Class B, Class C and Class
Z. Class A shares are sold with a front-end sales charge. A 1.00% contingent
deferred sales charge is assessed on redemptions made within eighteen months on
an original purchase of $1 million to $5 million. Class B shares are subject to
an annual distribution fee and a contingent deferred sales charge. Effective
February 1, 2000, Class B shares will convert to Class A shares as follows:
Converts to
Original Purchase Class A Shares
--------------------------------------------------------------------------------
Less than $250,000 8 years
$250,000 to less than $500,000 4 years
$500,000 to less than $1,000,000 3 years
Class C shares are subject to a contingent deferred sales charge on redemptions
made within one year after purchase and an annual distribution fee. Class E
shares are subject to a front-end sales charge and are subject to an annual
distribution fee. Class F shares are subject to an annual distribution fee and a
contingent deferred sales charge. Class Z shares are offered continuously at net
asset value. There are certain restrictions on the purchase of Class Z shares,
please refer to each Fund's prospectus.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the period. Actual results
could differ from those estimates. The following is a summary of significant
accounting policies that are consistently followed by the Funds in the
preparation of their 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.
Short term obligations with a maturity of 60 days or less are valued at
amortized cost.
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 (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 applicable 12b-1 fees)(see Note 3: Underwriting
discounts, service and distribution fees) and realized and unrealized gains
(losses) are allocated to each class proportionately on a daily basis for
purposes of determining the net asset value of each class.
The per share data was calculated using the average shares outstanding during
the period. Net investment income per share data reflects the distribution fee
per share where applicable.
Ratios are calculated by adjusting the expense and net investment income ratios
for each Fund for the entire period by the distribution fee and service fee
where applicable.
Federal Income Taxes
Consistent with the Funds' policy to qualify as regulated investment companies
and to distribute all of their taxable income, no federal income tax has been
accrued.
Distributions to Shareholders
Distributions to shareholders are recorded on the ex-date.
The amount and character of income and gains to be distributed are determined in
accordance with income tax regulations, which may differ from generally accepted
accounting principles. Reclassifications are made to the Funds' capital accounts
to reflect income and gains available for distribution (or available capital
loss carryforwards) under income tax regulations.
Other
Corporate actions are recorded on the ex-date. Interest income is recorded on
the accrual basis.
The Funds' 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.
18
<PAGE>
--------------------------------------------------------------------------------
Notes to Financial Statements (continued)
--------------------------------------------------------------------------------
Note 3. Fees and Compensation paid to Affiliates
Management Fee
Stein Roe and Farnham, Inc. (the Advisor) is the investment Advisor of each Fund
and receives a monthly fee based on each Fund's average net assets as follows:
SRATMGF
0.60% annually
SRATMGF II
0.80% annually
SRATMVF
0.80% annually
Administration Fee
Colonial Management Associates, Inc. (the Administrator), an affiliate of the
Advisor, provides accounting and other services and office facilities for a
monthly fee based on each Fund's average net assets as follows:
SRATMGF
0.40% annually
SRATMGF II
0.20% annually
SRATMVF
0.20% annually
Bookkeeping fee
For each Fund, the Administrator provides bookkeeping and pricing services for
$27,000 per year plus 0.035% of each Fund's average net assets over $50 million.
Transfer Agent Fee
Liberty Funds Services, Inc. (the Transfer Agent), an affiliate of the
Administrator, provides shareholder services for a monthly fee equal to 0.236%
annually of the Fund's average net assets and receives reimbursement for certain
out of pocket expenses.
Effective January 1, 2000, the Transfer Agent fee was changed to a fee comprised
of 0.07% annually of average net assets plus charges based on the number of
shareholder accounts and transactions.
Underwriting discounts, service and distribution fees
Liberty Funds Distributor, Inc. (the Distributor), a subsidiary of the
Administrator, is the Fund's principal underwriter. During the period ended
April 30, 2000, each Fund has been advised that the Distributor retained net
underwriting discounts on SRATMGF, SRATMGF II and SRATMVF of $141,480, $1,920
and none, respectively, on sales of the Funds' Class A shares and received
contingent deferred sales charges (CDSC) of $51, none and none on Class A share
redemptions, $486,716, none and 34,563 on Class B share redemptions and $9,474,
none and 3,063 on Class C share redemptions, respectively. SRATMGF had
contingent deferred sales charge (CDSC) of $ on Class F share redemptions.
SRATMGF has adopted a 12b-1 plan which requires the payment of a service fee to
the Distributor equal to 0.25% annually of Class A, Class B, Class C, Class E
and Class F net assets 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, Class C and Class F shares and 0.10%
annually of the average net assets attributable to Class E shares.
SRATMGF II has adopted a 12b-1 plan which requires the payment of a service fee
to the Distributor equal to 0.25% annually of Class A, Class B, and Class C net
assets 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.
SRATMVF has adopted a 12b-1 plan which requires the payment of a service fee to
the Distributor equal to 0.25% annually of Class A, Class B, and Class C net
assets of the 20th of each month. The plan also requires the payment of a
distribution fee to the Distributor equal to 0.05% annually of the average net
assets attributable to Class A shares and 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
The Advisor/Administrator has agreed, until further notice, to waive fees and
bear certain Fund expenses to the extent that total expenses (exclusive of
service fees, distribution fees, brokerage commissions, interest, taxes and
extraordinary expenses, if any) exceed 1.25% annually of the first $100 million
of average net assets and 1.50% annually thereafter on SRATMGF and SRATMGF II
and 1.50% annually of the Fund's average net assets on SRATMVF.
Other
The Funds pay no compensation to its officers, all of whom are employees of the
Advisor/Administrator.
The Funds' 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 Funds' assets.
Note 4. Portfolio Information
Investment Activity
For the period ended April 30, 2000, purchases and sales of investments, other
than short term obligations, were as follows:
Purchases Sales
--------------------------------------------------------------------------------
SRATMGF $377,695,906 $187,204,567
SRATMGF II $ 9,683,795 $ 567,064
SRATMVF $ 33,389,282 $ 17,603,172
Unrealized appreciation (depreciation) at April 30, 2000, based on cost of
investments for both financial statement and federal income tax purposes was:
SRATMGF SRATMGF II SRATMVF
--------------------------------------------------------------------------------
Gross unrealized
appreciation $ 175,703,163 $ 474,965 $ 3,548,809
Gross unrealized
depreciation (28,956,586) (629,749) (2,370,734)
------------- ------------- -------------
Net unrealized
appreciation
(depreciation) $ 146,746,577 $ (154,784) $ 1,178,075
------------- ------------- -------------
19
<PAGE>
--------------------------------------------------------------------------------
Notes to Financial Statements (continued)
--------------------------------------------------------------------------------
Capital Loss Carryforwards
At October 31, 1999, capital loss carryforwards available (to the extent
provided in regulations) to offset future realized gains were approximately as
follows:
Year of Capital Loss
Expiration Carryforward
--------------------------------------------------------------------------------
SRATMGF 2005 $ 559,000
2006 9,584,000
2007 1,696,000
-----------
$11,839,000
-----------
SRATMVF 2007 $ 656,000
Expired capital loss carryforwards, if any are recorded as a reduction of
capital paid in.
To the extent loss carryforwards are used to offset future realized gains, it is
unlikely that such gains would be distributed since they may be taxable to
shareholders as ordinary income.
Other
The Funds may focus their investments in certain industries, subjecting each to
greater risk than a fund that is more diversified.
Note 5. Line of Credit
The Funds may borrow up to 33 1/3% 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 period ended April 30, 2000.
Note 6. Other Related Party Transactions
At April 30, 2000, Colonial Management Associates, Inc., (CMA) owned 12%, 23%
and 59% of Class A, Class C and Class Z shares, respectively, of SRATMGF II and
100% of Class Z shares of SRATMVF.
During the period ended April 30, 2000, SRATMVF used Alphatrade, a wholly owned
subsidiary of the Administrator as a broker. Total commissions paid to
Alphatrade during the period were $13,187.
20
<PAGE>
--------------------------------------------------------------------------------
Financial Highlights SRATMGF
--------------------------------------------------------------------------------
Selected per-share data (for a share outstanding throughout each period), ratios
and supplemental data.
<TABLE>
<CAPTION>
(Unaudited)
Six months ended April 30, 2000
------------------------------------------------------------------------------------
Class A Class B Class C Class E(a) Class F(a) Class Z
------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value--Beginning of period $ 17.190 $ 16.820 $16.820 $17.140 $16.770 $17.230
-------- -------- ------- ------- ------- -------
Income From Investment Operations:
Net investment loss (b) (0.024) (0.138) (0.138) (0.078) (0.143) (0.046)
Net realized and unrealized gain 1.704 1.718 1.708 1.778 1.783 1.746
-------- -------- ------- ------- ------- -------
Total from Investment Operations 1.680 1.580 1.570 1.700 1.640 1.700
-------- -------- ------- ------- ------- -------
Net asset value, End of period $ 18.870 $ 18.400 $18.390 $18.840 $18.410 $18.930
======== ======== ======= ======= ======= =======
Total return (c)(d) 9.77% 9.39% 9.33% 9.92% 9.78% 9.87%
======== ======== ======= ======= ======= =======
Ratios to Average Net Assets
Expenses (e)(f) 1.55% 2.30% 2.30% 1.65% 2.30% 1.30%
Net investment loss (e)(f) (0.75)% (1.50)% (1.50)% (0.80)% (1.50)% (0.50)%
Portfolio turnover (d) 33% 33% 33% 33% 33% 33%
Net assets at end of period (000) $144,093 $477,620 $74,560 $ 8,798 $12,683 $ 1,298
</TABLE>
(a) On February 28, 2000, Class B and Class F shares were merged into Class G
and Class H. Class G and Class H shares were then redesignated Class E and
Class F shares.
(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) Not annualized.
(e) The benefits derived from custody credits and directed brokerage
arrangements had no impact.
(f) Annualized.
<TABLE>
<CAPTION>
Year Ended October 31, 1999
--------------------------------------------------------------------------------------------
Class A Class B Class C Class E Class F Class G Class H Class Z(b)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value--Beginning of period $13.390 $ 13.200 $13.200 $13.360 $13.210 $13.380 $13.210 $15.560
------- -------- ------- ------- ------- ------- ------- -------
Income From Investment Operations:
Net investment loss (a)(c) (0.034) (0.151) (0.152) (0.050) (0.151) (0.050) (0.151) (0.016)
Net realized and unrealized gain 3.834 3.771 3.772 3.830 3.711 3.840 3.771 1.686
------- -------- ------- ------- ------- ------- ------- -------
Total from Investment Operations 3.800 3.620 3.620 3.780 3.560 3.790 3.620 1.670
------- -------- ------- ------- ------- ------- ------- -------
Net asset value, End of period $17.190 $ 16.820 $16.820 $17.140 $16.770 $17.170 $16.830 $17.230
======= ======== ======= ======= ======= ======= ======= =======
Total return (d) 28.38% 27.42% 27.42% 28.29% 26.95% 28.33% 27.40% 10.73%(e)
======= ======== ======= ======= ======= ======= ======= =======
Ratios to Average Net Assets
Expenses (f) 1.64% 2.39% 2.39% 1.74% 2.39% 1.74% 2.39% 0.79%(g)
Net investment loss (f) (0.21)% (0.96)% (0.96)% (0.31)% (0.96)% (0.31)% (0.96)% (0.13)%(g)
Portfolio turnover 80% 80% 80% 80% 80% 80% 80% 80%
Net assets at end of period (000) $97,531 $303,726 $46,869 $ 1,089 $ 2,025 $ 6,427 $ 8,122 $ 1
(a) Net of fees and expenses waived
or borne by the Advisor/
Administrator which amounted to: $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ --
</TABLE>
(b) Class Z shares were initially offered on January 11, 1999. Per share data
reflects activity from that date.
(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) Not annualized.
(f) The benefits derived from custody credits and directed brokerage
arrangements had no impact.
(g) Annualized.
21
<PAGE>
--------------------------------------------------------------------------------
Financial Highlights SRATMGF (continued)
--------------------------------------------------------------------------------
Selected data for a share of each class outstanding throughout each period are
as follows:
<TABLE>
<CAPTION>
Year Ended October 31, 1998
---------------------------------------------------------------------------------------
Class A Class B Class C Class E Class F Class G Class H
-------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value--Beginning of period $12.040 $ 11.960 $11.960 $12.020 $11.970 $12.040 $11.960
------- -------- ------- ------- ------- ------- -------
Income From Investment Operations:
Net investment income (loss) (a)(b) 0.029 (0.069) (0.069) 0.016 (0.069) 0.016 (0.069)
Net realized and unrealized gain 1.321 1.309 1.309 1.324 1.309 1.324 1.319
------- -------- ------- ------- ------- ------- -------
Total from Investment Operations 1.350 1.240 1.240 1.340 1.240 1.340 1.250
------- -------- ------- ------- ------- ------- -------
Net asset value, End of period $13.390 $ 13.200 $13.200 $13.360 $13.210 $13.380 $13.210
======= ======== ======= ======= ======= ======= =======
Total return (c)(d) 11.21% 10.37% 10.37% 11.15% 10.36% 11.13% 10.45%
======= ======== ======= ======= ======= ======= =======
Ratios to Average Net Assets
Expenses (e) 1.56% 2.31% 2.31% 1.66% 2.31% 1.66% 2.31%
Net investment income (loss) (e) 0.22% (0.53)% (0.53)% 0.12% (0.53)% 0.12% (0.53)%
Fees and expenses waived or borne
by the Advisor/Administrator (e) 0.12% 0.12% 0.12% 0.12% 0.12% 0.12% 0.12%
Portfolio turnover 91% 91% 91% 91% 91% 91% 91%
Net assets at end of period (000) $45,472 $124,829 $18,786 $ 680 $ 1,105 $ 3,359 $ 3,887
(a) Net of fees and expenses waived
or borne by the Advisor/
Administrator which amounted to: $ 0.016 $ 0.016 $ 0.016 $ 0.016 $ 0.016 $ 0.016 $ 0.016
</TABLE>
(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 Advisor/Administrator 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.
<TABLE>
<CAPTION>
Period Ended October 31, 1997 (b)
--------------------------------------------------------------------------------------
Class A Class B Class C (c) Class E Class F Class G Class H
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value--Beginning of period $10.080 $10.080 $10.080 $10.080 $10.080 $10.080 $10.080
------- ------- ------- ------- ------- ------- -------
Income From Investment Operations:
Net investment income (loss) (a)(d) 0.040 (0.032) (0.032) 0.030 (0.032) 0.030 (0.032)
Net realized and unrealized gain 1.920 1.912 1.912 1.910 1.922 1.930 1.912
------- ------- ------- ------- ------- ------- -------
Total from Investment Operations 1.960 1.880 1.880 1.940 1.890 1.960 1.880
------- ------- ------- ------- ------- ------- -------
Net asset value, End of period $12.040 $11.960 $11.960 $12.020 $11.970 $12.040 $11.960
======= ======= ======= ======= ======= ======= =======
Total return (e)(f)(g) 19.44% 18.65% 18.65% 19.25% 18.75% 19.44% 18.65%
======= ======= ======= ======= ======= ======= =======
Ratios to Average Net Assets
Expenses (h)(i) 1.50% 2.25% 2.25% 1.60% 2.25% 1.60% 2.25%
Net investment income (loss) (h)(i) 0.39% (0.36)% (0.36)% 0.29% (0.36)% 0.29% (0.36)%
Fees and expenses waived or borne
by the Advisor/Administrator (h)(i) 0.98% 0.98% 0.98% 0.98% 0.98% 0.98% 0.98%
Portfolio turnover (g) 51% 51% 51% 51% 51% 51% 51%
Net assets at end of period (000) $17,142 $38,452 $ 5,923 $ 326 $ 421 $ 1,288 $ 1,156
(a) Net of fees and expenses waived
or borne by the Advisor/
Administrator which amounted to: $ 0.096 $ 0.096 $ 0.096 $ 0.096 $ 0.096 $ 0.096 $ 0.096
</TABLE>
(b) The Fund commenced investment operations on December 16, 1996, the
activity shown is from the effective date of registration (December 30,
1996) with the Securities and Exchange Commission.
(c) Effective July 1, 1997, Class D shares were redesignated Class C shares.
(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) Had the Advisor/Administrator not waived or reimbursed a portion of
expenses, total return would have been reduced.
(g) Not annualized.
(h) The benefits derived from custody credits and directed brokerage
arrangements had no impact.
(i) Annualized.
22
<PAGE>
--------------------------------------------------------------------------------
Financial Highlights SRATMGFII
--------------------------------------------------------------------------------
Selected data for a share of each class outstanding throughout each period are
as follows:
<TABLE>
<CAPTION>
(Unaudited)
Period ended April 30, 2000(b)
-------------------------------------------
Class A Class B Class C Class Z
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value--Beginning of period $12.000 $12.000 $12.000 $12.000
------- ------- ------- -------
Income From Investment Operations:
Net investment income (loss) (a)(c) (0.003) (0.017) (0.018) 0.001
Net realized and unrealized loss (0.122) (0.116) (0.126) (0.157)
------- ------- ------- -------
Total from Investment Operations (0.170) (0.170) (0.180) (0.160)
------- ------- ------- -------
Net asset value, End of period $11.830 $11.830 $11.820 $11.840
======= ======= ======= =======
Total return (d)(e)(f) (1.42)% (1.42)% (1.50)% (1.33)%
======= ======= ======= =======
Ratios to Average Net Assets
Expenses (g)(h) 1.50% 2.25% 2.25% 1.25%
Fees and expenses waived or borne by the Advisor (g)(h) 3.32% 3.32% 3.32% 3.32%
Net investment income (loss) (g)(h) (0.21)% (0.96)% (0.96)% 0.04%
Portfolio turnover (e) 12% 12% 12% 12%
Net assets at end of period (000) $ 769 $ 3,502 $ 447 $ 4,490
(a) Net of fees and expenses waived or borne
by the Advisor/Administrator which amounted to: $ 0.023 $ 0.023 $ 0.023 $ 0.023
</TABLE>
(b) The Fund commenced investment operations on March 7, 2000. Per share data
reflects activity from that date.
(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) Not annualized.
(f) Had the Advisor/Administrator not reimbursed a portion of expenses, total
return would have been reduced.
(g) The benefits derived from custody credits and directed brokerage
arrangements had no impact.
(h) Annualized.
23
<PAGE>
--------------------------------------------------------------------------------
Financial Highlights SRATMVF
--------------------------------------------------------------------------------
Selected data for a share of each class outstanding throughout each period are
as follows:
<TABLE>
<CAPTION>
(Unaudited)
Six months ended April 30, 2000
-----------------------------------------------
Class A Class B Class C Class Z
------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value--Beginning of period $10.640 $10.610 $10.610 $10.650
------- ------- ------- -------
Income From Investment Operations:
Net investment income (loss) (a)(b) 0.012 (0.024) (0.024) 0.027
Net realized and unrealized gain (loss) (0.122) (0.116) (0.126) (0.157)
------- ------- ------- -------
Total from Investment Operations (0.110) (0.140) (0.150) (0.130)
------- ------- ------- -------
Net asset value, End of period $10.530 $10.470 $10.460 $10.520
======= ======= ======= =======
Total return (c)(d)(e) (1.03)% (1.32)% (1.41)% (1.22)%
======= ======= ======= =======
Ratios to Average Net Assets
Expenses (f)(g) 1.80% 2.50% 2.50% 1.50%
Fees and expenses waived or borne
by the Advisor/Administrator (f)(g) 0.46% 0.46% 0.46% 0.46%
Net investment income (loss) (f)(g) 0.23% (0.48)% (0.48)% 0.53%
Portfolio turnover (d) 52% 52% 52% 52%
Net assets at end of period (000) $10,233 $28,728 $ 6,197 $ 1
(a) Net of fees and expenses waived or
borne by the Advisor/Administrator
which amounted to: $ 0.023 $ 0.023 $ 0.023 $ 0.023
</TABLE>
(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) Not annualized.
(e) Had the Advisor/Administrator not 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.
(g) Annualized.
<TABLE>
<CAPTION>
Period ended October 31, 1999 (a)
------------------------------------------------
Class A Class B Class C Class Z
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value--Beginning of period $12.000 $12.000 $12.000 $12.000
------- ------- ------- -------
Income From Investment Operations:
Net investment income (loss) (b)(c) 0.000(i) (0.038) (0.038) 0.012
Net realized and unrealized gain (loss) (1.360) (1.352) (1.352) (1.362)
------- ------- ------- -------
Total from Investment Operations (1.360) (1.390) (1.390) (1.350)
------- ------- ------- -------
Net asset value, End of period $10.640 $10.610 $10.610 $10.650
======= ======= ======= =======
Total return (d)(e)(f) (11.33)% (11.58)% (11.58)% (11.25)%
======= ======= ======= =======
Ratios to Average Net Assets
Expenses (g)(h) 1.77% 2.60% 2.60% 1.50%
Net investment income (loss) (g)(h) (0.00)% (0.83)% (0.83)% 0.27%
Portfolio turnover (f) 19% 19% 19% 19%
Net assets at end of period (000) $ 7,528 $14,622 $ 4,137 $ 2,396
(a) From commencement of operations
on June 1, 1999
(b) Net of fees and expenses waived
or borne by the Advisor/
Administrator which amounted to: $ 0.065 $ 0.065 $ 0.065 $ 0.065
</TABLE>
(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 Advisor/Administrator not 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.
(i) Rounds to less than 0.001.
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