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[LOGO]
COLUMBIA FUNDS
1996 ANNUAL REPORT
COLUMBIA COMMON STOCK FUND
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COLUMBIA GROWTH FUND
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COLUMBIA INTERNATIONAL STOCK FUND
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COLUMBIA SPECIAL FUND
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COLUMBIA SMALL CAP FUND
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COLUMBIA REAL ESTATE EQUITY FUND
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COLUMBIA BALANCED FUND
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COLUMBIA DAILY INCOME COMPANY
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COLUMBIA U.S. GOVERNMENT SECURITIES FUND
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COLUMBIA FIXED INCOME SECURITIES FUND
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COLUMBIA MUNICIPAL BOND FUND
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COLUMBIA HIGH YIELD FUND
<PAGE>
LETTER TO SHAREHOLDERS
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Dear Columbia Investor:
We are pleased to present the 1996 Columbia Funds Shareholder Report.
Inside, you will find updated financial information and summaries of
each fund's investment activity for the year, along with a chart
illustrating the growth of a hypothetical investment as compared to
each of the fund's industry benchmarks.
At Columbia, our goal has always been to provide consistent, long-term
performance for our shareholders while managing investment risk. In
these days of recordbreaking stock market performance, we wish to
reaffirm our commitment to careful, quality investment management. The
"Overview of the Markets" on page one of this report explains this
investment approach in greater detail, along with highlights of
current themes and strategies we are using to meet the objectives of
each fund. We hope that you find this information helpful as you
evaluate the performance of your investments.
As always, we appreciate the confidence and trust you have placed in
Columbia Funds, and we look forward to helping you achieve your
investment goals in the months and years to come.
<TABLE>
<S> <C>
Sincerely,
J. JERRY INSKEEP, JR. JOHN A. KEMP
CHAIRMAN PRESIDENT
</TABLE>
<PAGE>
TABLE OF CONTENTS
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ANNUAL REPORT, DECEMBER 31, 1996
AN OVERVIEW OF THE MARKETS.....................................................1
COLUMBIA COMMON STOCK FUND
Investment Review............................................................3
Financial Highlights........................................................15
Schedule of Investments.....................................................27
Statement of Assets and Liabilities.........................................62
Statement of Operations.....................................................65
Statements of Changes in Net Assets.........................................68
COLUMBIA GROWTH FUND
Investment Review............................................................4
Financial Highlights........................................................16
Schedule of Investments.....................................................29
Statement of Assets and Liabilities.........................................62
Statement of Operations.....................................................65
Statements of Changes in Net Assets.........................................68
COLUMBIA INTERNATIONAL STOCK FUND
Investment Review............................................................5
Financial Highlights........................................................17
Schedule of Investments.....................................................31
Statement of Assets and Liabilities.........................................62
Statement of Operations.....................................................65
Statements of Changes in Net Assets.........................................68
COLUMBIA SPECIAL FUND
Investment Review............................................................6
Financial Highlights........................................................18
Schedule of Investments.....................................................35
Statement of Assets and Liabilities.........................................62
Statement of Operations.....................................................65
Statements of Changes in Net Assets.........................................69
COLUMBIA SMALL CAP FUND
Investment Review............................................................7
Financial Highlights........................................................19
Schedule of Investments.....................................................38
Statement of Assets and Liabilities.........................................63
Statement of Operations.....................................................66
Statement of Changes in Net Assets..........................................69
COLUMBIA REAL ESTATE EQUITY FUND
Investment Review............................................................8
Financial Highlights........................................................20
Schedule of Investments.....................................................41
Statement of Assets and Liabilities.........................................63
Statement of Operations.....................................................66
Statements of Changes in Net Assets.........................................69
COLUMBIA BALANCED FUND
Investment Review............................................................9
Financial Highlights........................................................21
Schedule of Investments.....................................................42
Statement of Assets and Liabilities.........................................63
Statement of Operations.....................................................66
Statements of Changes in Net Assets.........................................70
COLUMBIA DAILY INCOME COMPANY
Investment Review...........................................................10
Financial Highlights........................................................22
Schedule of Investments.....................................................47
Statement of Assets and Liabilities.........................................63
Statement of Operations.....................................................66
Statements of Changes in Net Assets.........................................70
COLUMBIA U.S. GOVERNMENT SECURITIES FUND
Investment Review...........................................................11
Financial Highlights........................................................23
Schedule of Investments.....................................................49
Statement of Assets and Liabilities.........................................64
Statement of Operations.....................................................67
Statements of Changes in Net Assets.........................................70
COLUMBIA FIXED INCOME SECURITIES FUND
Investment Review...........................................................12
Financial Highlights........................................................24
Schedule of Investments.....................................................50
Statement of Assets and Liabilities.........................................64
Statement of Operations.....................................................67
Statements of Changes in Net Assets.........................................71
COLUMBIA MUNICIPAL BOND FUND
Investment Review...........................................................13
Financial Highlights........................................................25
Schedule of Investments.....................................................53
Statement of Assets and Liabilities.........................................64
Statement of Operations.....................................................67
Statements of Changes in Net Assets.........................................71
COLUMBIA HIGH YIELD FUND
Investment Review...........................................................14
Financial Highlights........................................................26
Schedule of Investments.....................................................59
Statement of Assets and Liabilities.........................................64
Statement of Operations.....................................................67
Statements of Changes in Net Assets.........................................71
NOTES TO FINANCIAL STATEMENTS.................................................72
COLUMBIA FUNDS
P.O. BOX 1350
PORTLAND, OR 97207-1350
222-3606
1-800-547-1707
<PAGE>
AN OVERVIEW OF THE MARKETS
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THE YEAR IN REVIEW
When we started the year, market consensus called for dull performance. The
market rallied early, however, and by the end of May, the S&P 500 Index of large
stocks was up almost 10%. The performance of small stocks was even stronger,
with the Russell 2000 Index up more than 15%.
This strong performance was largely attributable to increased earnings in a
rapidly growing economy. The Gross Domestic Product (GDP) increased from 0.3% in
the last quarter of 1995 to 4.7% in the second quarter of 1996. Not
surprisingly, this economic pick-up had an upward influence on interest rates,
and by mid-year investors became concerned that the Federal Reserve Board would
tighten the money supply.
Although the Fed did not take action, the hint of change led to a sharp market
decline through the end of July. By July's end, the Russell 2000 had given up
almost all its gain year-to-date. The annual gain for the S&P 500 was cut in
half to 5%.
During the summer, reports seemed to indicate that economic growth was slowing.
Investors reassessed the outlook and decided that low inflation and modest
growth would be good for stocks and bonds. Long-term interest rates declined,
helped by strong Japanese buying of U.S. bonds, and the stock market rapidly
accelerated. Also during this time, flows into equity mutual funds were strong
versus the offering of new equities, resulting in a positive supply-demand
scenario. From the end of July to the end of November, the S&P 500 increased
19.2%, including a 7.55% gain in the month of November alone. Smaller stocks
also increased in value, but at a more subdued rate.
In early December, Federal Reserve Chairman Alan Greenspan suggested that the
markets might be entering a speculative phase. However, the market's nervous
reaction to his statement hardly dented the 1995-96 combined gain. By recording
a positive return in 1996, the stock market enjoyed its sixth straight annual
advance, with the Dow Jones Industrial Averages up a record-breaking 11 out of
the past 12 years.
<TABLE>
<CAPTION>
BENCHMARK PERFORMANCE COMPARISONS
Average Annual Total Returns,
FOR THE PERIODS ENDED DECEMBER 31, 1996
1 year 3 years 5 years 10 years
---------- ---------- ---------- ------------
<S> <C> <C> <C> <C>
Standard & Poor's 500 22.96% 19.68% 15.22% 15.29%
Lehman Aggregate 3.63% 6.03% 7.04% 8.47%
Russell 2000 16.49% 13.68% 15.64% 12.41%
Financial Times/S&P Actuaries
Euro-Pacific 5.82% 8.51% 7.94% 8.58%
</TABLE>
CURRENT OUTLOOK
At this stage, one might expect the current economic cycle to begin showing
signs of age and inflationary pressures. However, the factors that have led to
excellent market performance appear intact. Inflation remains subdued, signaling
that interest rates could continue a long-term downward trend. (In the near
term, though, we expect interest rates to continue to react to news on economic
growth, inflation, currency fluctuations and foreign money flows into the U.S.
bond market.) Earnings remain positive, and money flows into financial assets
continue at or near record levels. Despite the temporary ebbs and flows that are
bound to occur in the U.S. economy, we seem to remain in an overall growth mode,
accompanied by modest inflation.
Although this economic backdrop continues to favor financial markets, the stock
market as a whole is selling at historically high levels. Using history as a
guide, high valuation levels can lead to increased volatility and decreased
gain. However, a fully priced market is seldom the sole cause for a long-term
bull market to end, and we are experiencing the greatest bull market of this
century. In the past, bull markets have waned when economic and financial
environments experience fundamental change. The consensus forecast for 1997
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AN OVERVIEW OF THE MARKETS
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calls for subtle changes rather than a major shift to any important factors that
might seriously affect financial markets.
INVESTMENT STRATEGY
The risk to a high priced stock market is that it becomes increasingly
vulnerable to negative surprises. Such negative surprises could include a
stronger economy than forecasted ushering in higher inflation, a weaker economy
with a squeeze on profits, currency problems or some unforeseen event. In short,
risks are rising compared to rewards. We continue to find attractive stocks, but
have become more cautious about our asset mix between stocks and bonds, and have
reduced our holdings in stocks with high valuations and high expectations.
As commonly occurs when markets rise rapidly, investors tend to narrow their
focus to fewer, larger capitalized stocks with presumed high predictability.
This tendency means many stocks have been overlooked and offer value. We are
focusing our research on these companies. As we look to 1997, there continues to
be reason for optimism, but we are growing more cautious and are reluctant to
buy stocks solely based on recent price momentum.
So that you may evaluate how the Columbia Funds performed given this economic
and financial market backdrop, the following pages contain discussions of the
Funds' investment activity during 1996, along with graphs illustrating the
growth of $10,000 over various time periods. Each Fund compares its performance
to a relevant benchmark. Unlike the Funds, however, these benchmark indices are
not actively managed and have no operating expenses, portfolio transaction costs
or cash flows.
We hope that you find this information useful, and we look forward to helping
you meet your investment goals and needs in the months and years to come.
THE INVESTMENT TEAM
COLUMBIA FUNDS MANAGEMENT COMPANY
FEBRUARY 1997
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INVESTMENT REVIEW
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-- COLUMBIA COMMON STOCK FUND --
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Columbia Common Stock Fund had a total return of 20.71% for the twelve months
ended December 31, 1996. During the first half of the year, our "Graying of
America" theme had a positive influence on performance, where we emphasized such
sectors as travel and entertainment. As the stock market grew more nervous, we
increased our holdings in real estate investment trusts (REITs) and utilities
(communications, electric and gas). Toward the end of the year, the Fund
benefited from its exposure to banks, machinery, technology, energy, and real
estate. Sectors that did not perform as well included media, business services
and retailers.
Most recently, we have added to our banking and financial holdings, where stocks
are benefiting from positive earnings growth and industry consolidation. We have
also added to metals and autos, which we believe offer relative value and fit
within our framework of a strengthening economy. We decreased our holdings in
technology, consumer staples and health care, taking profits in several stocks
we believed were fully priced in the near term.
We enter 1997 with an emphasis in the basic materials and manufacturing sectors,
such as paper, aluminum and industrial equipment. We are also positive about the
prospects for REITs, energy and selected technology stocks. With the stock
market at relatively high valuations, we are focusing more attention on risk
versus reward, avoiding issues we believe are susceptible to disappointment.
GROWTH OF $10,000 SINCE INCEPTION
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
Columbia Common Stock Fund S&P 500
<S> <C> <C>
10/01/91 10,000 10,000
12/31/91 11,025 10,838
12/31/92 12,126 11,664
12/31/93 14,120 12,840
12/31/94 14,411 13,009
12/31/95 18,855 17,898
12/31/96 22,758 22,007
Average Annual Total Returns as of December 31,
1996
CCSF S&P 500
1 Year 20.17% 22.96%
5 Years 15.60% 15.22%
Since Inception 16.78% 16.05%
Past Performance is not predictive of future
results
</TABLE>
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INVESTMENT REVIEW
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-- COLUMBIA GROWTH FUND --
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Columbia Growth Fund generated a total return of 20.80% for the one year period
ending December 31, 1996. Throughout the year, we have focused on such
investment themes as the "Graying of America," industry restructuring, and
digital technology, all of which benefited fund performance.
Toward the end of the year, market leadership was concentrated in the very
largest capitalized stocks due to investors' concern about a general slowing in
corporate profits. While stocks generally appreciated, most lagged the gains
achieved by the largest cap issues. Although this dynamic may persist awhile, we
believe that better, long-term opportunities exist in sectors outside the large
cap market, and we are focusing our research on these areas.
In addition, as many industries complete their restructuring efforts, Corporate
America is now increasing its emphasis on sales growth. As a result, we have
been searching out those organizations we believe have the opportunities,
strategies and resources to accelerate growth.
While the economy's growth rate has sped up from the third quarter's slow pace,
it is unclear whether a pickup in corporate revenue will be offset by an
increase in costs. We will be watching the Federal Reserve Board closely, in
case it moves to fight inflation fears by raising interest rates.
GROWTH OF $10,000 OVER 20 YEARS
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
Columbia Growth Fund S&P 500
<S> <C> <C>
12/31/76 10,000 10,000
12/31/77 9,989 9,270
12/31/78 10,792 9,866
12/31/79 15,170 11,676
12/31/80 21,220 15,454
12/31/81 20,501 14,689
12/31/82 30,046 17,847
12/31/83 36,494 21,848
12/31/84 34,458 23,194
12/31/85 45,509 30,514
12/31/86 48,658 36,202
12/31/87 55,830 38,110
12/31/88 61,865 44,417
12/31/89 79,862 58,457
12/31/90 77,218 56,674
12/31/91 103,673 73,943
12/31/92 115,928 79,577
12/31/93 131,010 87,599
12/31/94 130,184 88,755
12/31/95 173,119 122,109
12/31/96 209,128 150,146
Average Annual Total Returns as of December 31,
1996
CGF S&P 500
1 Year 20.80% 22.96%
5 Years 15.07% 15.22%
10 Years 15.70% 15.29%
20 Years 16.42% 14.51%
Past Performance is not predictive of future
results
</TABLE>
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INVESTMENT REVIEW
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-- COLUMBIA INTERNATIONAL STOCK FUND --
---------------------------------------
The Fund posted a total return of 16.59% for the year ended December 31, 1996.
This performance was significantly better than that of the Fund's benchmark
index, the FT/S&P Euro-Pac, which returned 5.82% for the same period.
Many stock markets around the world performed well during the period, ending the
year at record levels. Japan, the largest market outside the U.S., declined for
the year, however, and further negative pressure came from the weak Yen. Our
weighting in Japan was maintained at approximately half the Index's weighting.
During the second half of the year, this underweighting concentrated in Japanese
exporting industries, such as autos and electronics, which actually benefited
from a weaker Yen. Thus, we were able to offset some of the negative influence
of Japan.
Meanwhile, Canada, Hong Kong and the UK all enjoyed positive returns during the
year, and we have maintained solid weightings in those areas.
In addition, the Fund benefited from investments in Europe, such as Spain and
Italy, which enjoyed good performance throughout the year. Our European exposure
was offset somewhat by the strength of the U.S. dollar, but our conservative
hedging strategy helped to mitigate the overall weakness of foreign currencies.
We continue to favor a number of emerging markets, particularly Brazil and
India, both of which closed the year on a positive note.
Looking ahead, we have positioned the portfolio to take advantage of an
acceleration in worldwide growth during the coming year. And with the U.S. stock
market at record valuation levels, we believe an increasing number of investors
will diversify their portfolios overseas, which should benefit the world markets
and long-term investors in the Fund.
GROWTH OF $10,000 SINCE INCEPTION
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
Columbia International Stock Fund FT/S&P Euro-Pac S&P 500
<S> <C> <C> <C>
10/01/92 10,000 10,000 10,000
12/31/92 10,060 9,628 10,503
12/31/93 13,417 12,665 11,562
12/31/94 13,086 13,822 11,714
12/31/95 13,760 15,290 16,117
12/31/96 16,041 16,180 19,817
Average Annual Total Returns as of December 31,
1996
CISF S&P 500 FT/S&P Euro-Pac
1 Year 16.59% 22.96% 5.82%
Since Inception 11.62% 17.24% 11.84%
Past Performance is not predictive of future
results
</TABLE>
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INVESTMENT REVIEW
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-- COLUMBIA SPECIAL FUND --
---------------------------
Columbia Special Fund posted a total return of 13.07% for 1996. While the Fund
enjoyed excellent returns through May, performance in the second half suffered
as several sectors that had performed well early in the year experienced sharp
declines. These included radio stocks, wireless telecommunication companies, and
selected service companies that were selling at relatively high price/earnings
multiples.
Most recently, we made a number of changes in the portfolio that we believe will
result in more positive performance results. We have reduced our holdings in
stocks selling at high price/earnings ratios that we believe are more vulnerable
to negative surprises. Technology, for instance, was reduced by year-end to
approximately 13% of assets from 25% during the third quarter. We have slightly
increased our allocation to foreign stocks to help balance some of the higher
valuations of the U.S. domestic stock market. In addition, we have increased our
emphasis in value stocks, where we look for a positive acceleration in earnings.
This has led us to invest in groups like paper, metals, energy, and certain
machinery stocks.
These shifts in emphasis are consistent with the Fund's long-term strategy of
investing about 50% of the portfolio in growth stocks, 35% to 45% in sectors and
themes we find attractive on a trading basis, and 5% to 10% of the portfolio in
special situations, such as companies that are restructuring for greater
efficiency and companies that may be involved in a takeover.
GROWTH OF $10,000 OVER 10 YEARS
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
Columbia Special Fund S&P 500 Russell 2000
<S> <C> <C> <C>
12/31/86 10,000 10,000 10,000
12/31/87 10,304 10,527 9,123
12/31/88 14,688 12,269 11,394
12/31/89 19,377 16,148 13,244
12/31/90 16,976 15,655 10,660
12/31/91 25,542 20,425 15,569
12/31/92 29,041 21,981 18,437
12/31/93 35,338 24,197 21,922
12/31/94 36,147 24,517 21,523
12/31/95 46,821 33,730 27,644
12/31/96 52,942 41,472 32,207
Average Annual Total Returns as of December 31,
1996
CSF S&P 500 Russell 2000
1 Year 13.07% 22.96% 16.49%
5 Years 15.69% 15.22% 15.64%
10 Years 18.14% 15.29% 12.41%
Past Performance is not predictive of future
results
</TABLE>
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<PAGE>
INVESTMENT REVIEW
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- ---- ----
-- COLUMBIA SMALL CAP FUND --
-----------------------------
During the fourth quarter of 1996, the first three months of the Fund's
operation, Columbia Small Cap Fund returned 7.62%.
The Fund, which focuses on stocks with a market capitalization below $1 billion,
benefited from an overweighting in energy stocks during the period. The strength
of the energy sector was attributable to rising oil and gas prices and stronger
profits by both producers and service providers. Meanwhile, the Fund did not
benefit from a lower allocation to financial stocks, which rallied when
long-term interest rates fell below 6 1/2%.
Although large cap stocks outperformed small cap stocks in the fourth quarter
because of investor concern over a general slowing in corporate profits, we
remain optimistic about the prospects for small cap stocks during the coming
year. We also believe that a stronger dollar and continued moderate economic
growth will benefit relative performance of the small cap sector.
As we enter 1997, the Fund continues its focus on fundamental research to
identify attractively valued companies with above-average earnings growth. In
addition, we seek special situations, such as turnaround candidates, corporate
restructurings, and other scenarios where we believe the market is not correctly
recognizing a change in corporate fundamentals.
GROWTH OF $10,000 SINCE INCEPTION
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
Columbia Small Cap Fund Russell 2000
<S> <C> <C>
10/01/96 10,000 10,000
10/31/96 10,174 9,846
11/30/96 10,488 10,252
12/31/96 10,762 10,520
Average Annual Total Returns
as of December 31, 1996
CSCF Russell 2000
Since Inception 7.62% 5.20%
Past Performance is not predictive of future
results
</TABLE>
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<PAGE>
INVESTMENT REVIEW
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- ---- ----
-- COLUMBIA REAL ESTATE EQUITY FUND --
--------------------------------------
The Fund enjoyed a total return of 38.30% for the one year ended December 31,
1996. This positive performance was led by investments in the self storage,
office and hotel sectors throughout most of the year. Lagging sectors included
health care and retail, both of which had below-market weightings in the Fund.
Performance during the year was supported by increased investor interest in
REITs (real estate investment trusts). In an environment where the broader stock
market continues to achieve new highs, REITs offer attractive yields and sound
underlying fundamentals for investors looking to structure their portfolios more
defensively.
The Fund continues to seek capital appreciation and above-average current income
for its shareholders by investing primarily in equity securities of companies in
the real estate industry. These companies currently include equity REITs, which
own commercial income properties as well as real estate brokers and developers.
Looking ahead, we believe that the current flow of funds into REITs and a
moderate growth environment will continue to make this fund attractive for
long-term investors.
GROWTH OF $10,000 SINCE INCEPTION
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
National Association of Real
Columbia Real Estate Estate
<S> <C> <C>
Equity Fund Investment Trusts
4/01/94 10,000 10,000
6/30/94 10,134 10,184
9/30/94 9,907 9,976
12/31/94 10,175 9,978
3/31/95 9,967 9,961
6/30/95 10,560 10,547
9/30/95 11,063 11,044
12/31/95 11,891 11,501
3/31/96 12,143 11,762
6/30/96 12,703 12,285
9/30/96 13,897 13,089
12/31/96 16,446 15,556
Average Annual Total Returns as of December 31,
1996
CREF NAREIT
1 Year 38.30% 35.27%
Since Inception 19.44% 17.09%
Past Performance is not predictive of future
results
</TABLE>
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<PAGE>
INVESTMENT REVIEW
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- ---- ----
-- COLUMBIA BALANCED FUND --
----------------------------
Columbia Balanced Fund produced a total return of 11.78% for the twelve months
ended December 31, 1996. On the stock side of the portfolio, the Fund benefited
from holdings in finance, paper, technology, machinery and REITs (real estate
investment trusts). Insurance, consumer durables, transportation and telephone
sectors were among the laggards.
During the second half of the year, market strength has been concentrated in a
small number of the largest capitalized stocks, penalizing issues we believe
have fundamental strength and valuations that make them attractive on a
long-term basis. Therefore, we continue to focus on these issues as well as
companies with international exposure, in anticipation of an acceleration in
global economic growth for the coming year.
On the bond side of the portfolio, we have maintained a 40% to 45% weighting in
fixed income due to our concerns about the stock market's narrow focus. Early in
the year, however, bonds suffered from price declines as a result of rising
interest rates. We responded to this volatile environment by shortening the
average maturity of the bonds in the portfolio. We also have shifted our fixed
income emphasis to mortgage securities relative to both Treasuries and corporate
bonds because of their yield advantage and high credit quality. Despite the
lagging performance of bonds during the year, we believe that a highly valued
stock market will make fixed income more attractive to investors in 1997. We
also believe that the bond market offers a yield advantage not currently
available on the S&P 500 Index.
GROWTH OF $10,000 SINCE INCEPTION
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
Columbia Balanced Fund S&P 500 Lehman Aggregate
<S> <C> <C> <C>
10/01/91 10,000 10,000 10,000
12/31/91 10,780 10,838 10,507
12/31/92 11,738 11,664 11,285
12/31/93 13,337 12,840 12,385
12/31/94 13,350 13,009 12,023
12/31/95 16,699 17,898 14,244
12/31/96 18,663 22,007 14,761
Average Annual Total Returns as of December 31,
1996
CBF S&P 500 Lehman Aggregate
1 Year 11.78% 22.96% 3.63%
5 Years 11.60% 15.22% 7.04%
Since Inception 12.49% 16.05% 7.62%
Past performance is not predictive of future
results
</TABLE>
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<PAGE>
INVESTMENT REVIEW
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- ---- ----
-- COLUMBIA DAILY INCOME COMPANY --
-----------------------------------
The Fund posted a total return of 4.96% for the twelve months ended December 31,
1996. Early in the year, a stronger than expected economy reversed investors'
beliefs that interest rates would continue their downward trend from the
previous year. As a result, interest rates began to climb in February and
remained volatile throughout the second quarter.
During the second half, a reasonably stable economy, benign inflationary
pressures and a neutral Federal Reserve policy kept interest rates in a narrow
trading range. Consequently, the yield of the Fund has remained very stable
throughout the year. Looking forward, we believe changes in yield will depend
upon Federal Reserve policy, which is driven by inflation rates, investors'
perceptions about economic growth, the dollar's relationship to other
currencies, and the supply/ demand scenario for funds. For example, any signs of
economic growth, coupled with increases in longer term rates, may result in an
increase in short-term interest rates for the coming year.
The Fund continues its policy of maintaining a very high quality portfolio,
investing primarily in commercial paper, U.S. Treasury Bills, U.S. Government
agency discount notes and certificates of deposit, all with maturities less than
one year.
GROWTH OF $10,000 OVER 10 YEARS
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
Consumer Price Index
Columbia Daily Income Company (inflation)
<S> <C> <C>
12/31/1986 10,000 10,000
12/31/1987 10,611 10,491
12/31/1988 11,361 10,918
12/31/1989 12,371 11,458
12/31/1990 13,341 12,201
12/31/1991 14,096 12,547
12/31/1992 14,554 12,929
12/31/1993 14,920 13,269
12/31/1994 15,469 13,618
12/31/1995 16,318 13,977
12/31/1996 17,127 14,437
Average Annual Total Returns
as of December 31, 1996 CDIC CPI
1 Year 4.96% 3.35%
5 Years 3.97% 2.85%
10 Years 5.53% 3.74%
Past Performance is not predictive of future
results
</TABLE>
-
10
<PAGE>
INVESTMENT REVIEW
-----------------------------------------------------------------
- ---- ----
-- COLUMBIA U.S. GOVERNMENT SECURITIES FUND --
----------------------------------------------
The U.S. Government Securities Fund posted a total return of 3.85% for the
twelve months ended December 31, 1996. After enjoying a fine rally in 1995,
bonds across the entire yield curve were battered by a volatile interest rate
environment during 1996.
The stage was set in 1995 with a series of interest rate cuts by the Federal
Reserve Board in order to stimulate a faltering U.S. economy. Market
expectations for lower rates became so pronounced that by January 1996, yields
on three-month Treasury Bills were higher than on longer term, two-year
Treasuries as investors tried to lock in yields before they fell further.
However, interest rate expectations sharply reversed in February, following the
release of a surprisingly strong employment report. Instead of a rate reduction,
investors began to anticipate an interest rate increase, bidding down the price
of most bonds.
We responded to the rising interest rate environment by modestly shortening the
average maturity of the portfolio to between 2.4 years and 2.5 years during the
second quarter. As investors attempted to sort out the future direction of
Federal Reserve policy, interest rates drifted modestly down during the second
half of the year, enabling bonds in the portfolio to recover from earlier
depreciation.
We closed the year by shortening the average maturity of the portfolio to
approximately 2 years, as indications of economic strength became more apparent.
In the event that interest rates rise -- due to demand for funds, concerns about
inflation or expectations of possible Federal Reserve restraint -- we believe
that this more defensive positioning will serve the Fund well.
GROWTH OF $10,000 OVER 10 YEARS
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
Columbia U.S. Government Consumer Price
<S> <C> <C> <C>
Merrill 1-3 Treasury Index
Securities Fund Index (inflation)
12/31/86 10,000 10,000 10,000
12/31/87 10,414 10,565 10,491
12/31/88 10,970 11,223 10,918
12/31/89 12,027 12,443 11,458
12/31/90 13,144 13,654 12,201
12/31/91 14,816 15,249 12,547
12/31/92 15,676 16,209 12,929
12/31/93 16,603 17,086 13,269
12/31/94 16,598 17,184 13,618
12/31/95 18,293 19,074 13,977
12/31/96 18,998 20,020 14,437
Average Annual Total Returns
as of December 31, 1996
CUSG Merrill 1-3
1 Year 3.85% 4.98%
5 Years 5.10% 5.60%
10 Years 6.63% 7.19%
Past performance is not predictive of future
results
</TABLE>
-
11
<PAGE>
INVESTMENT REVIEW
-----------------------------------------------------------------
- ---- ----
-- COLUMBIA FIXED INCOME SECURITIES FUND --
-------------------------------------------
The total return for the Fixed Income Securities Fund was 3.37% for the twelve
months ended December 31, 1996. During the first six months of the year, the
bond market suffered from a rising interest rate environment, and as interest
rates rise, prices on existing bonds generally fall. Thanks to a recovering bond
market during the second half of the year, however, the Fund was able to recover
from its earlier retraction.
Bond prices rallied in response to controlled economic growth, stable commodity
prices (such as precious metals and grains), benign inflationary pressures and a
neutral Federal Reserve policy. However, fixed income returns depend upon
investors' expectations for future inflation and economic growth. Nevertheless,
with moderate inflation expected for the coming year, we believe bonds are
fairly valued. Interest rates should remain in a narrow trading range unless
economic growth rapidly accelerates and inflationary pressures (particularly
labor costs) rise.
In preparing for the coming year, we have shifted to an above-market weighting
in mortgage securities relative to both Treasuries and corporate bonds because
of their yield advantage and high credit quality.
The Fund continues to maintain a standard of high quality, with 88% of the
portfolio rated A or higher. At year-end, average maturity had been shortened to
approximately 6 years and the fund's duration (a measure of risk) was around 4.6
years.
GROWTH OF $10,000 OVER 10 YEARS
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
Columbia Fixed Income Lehman Consumer Price
<S> <C> <C> <C>
Index
Securities Fund Aggregate (inflation)
12/31/1986 10,000 10,000 10,000
12/31/1987 10,135 10,276 10,491
12/31/1988 10,917 11,087 10,918
12/31/1989 12,484 12,698 11,458
12/31/1990 13,520 13,835 12,201
12/31/1991 15,797 16,049 12,547
12/31/1992 17,059 17,237 12,929
12/31/1993 18,845 18,917 13,269
12/31/1994 18,212 18,365 13,618
12/31/1995 21,656 21,757 13,977
12/31/1996 22,384 22,546 14,437
Average Annual Total Returns
as of December 31, 1996
Lehman
CFIS Aggregate
1 Year 3.37% 3.63%
5 Years 7.22% 7.04%
10 Years 8.39% 8.47%
Past Performance is not predictive of future
results
</TABLE>
-
12
<PAGE>
INVESTMENT REVIEW
-----------------------------------------------------------------
- ---- ----
-- COLUMBIA MUNICIPAL BOND FUND --
----------------------------------
Columbia Municipal Bond Fund's total return for the 1996 year was 3.77%. As the
market adjusted to investors' expectations for a stronger economy and interest
rates rose, the performance of bonds was held back during much of the year. The
Fund picked up most of its return during the fourth quarter, as interest rates
fell slightly on mixed economic reports and the market's perception that the
Federal Reserve Board would not raise interest rates.
During the year, low unemployment and strong growth in Oregon continued to
contribute to a flourishing local economy and improving credit quality for
municipal issues. There may be some pressure on local finances in the future as
the state grapples with the effects of Measure 47. Although the measure rolls
back property taxes, we believe that it will not significantly impact the
long-term credit quality of issues in the State.
We continue to structure the portfolio using high quality instruments with over
95% of the Fund's securities rated A or higher at year-end. The Fund's effective
average maturity remains intermediate-term at about 8 years. Fund duration (a
measure of risk) continues to hover around 6.5 years.
The Fund remains broadly diversified with a total of 236 bonds, including 227
different issues within the State of Oregon. As always, we are committed to
providing shareholders with high, after-tax returns while maintaining a low
level of both credit and volatility risk.
GROWTH OF $10,000 OVER 10 YEARS
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
Columbia Municipal Lehman General Consumer Price
<S> <C> <C> <C>
Index
Bond Fund Obligation Index (inflation)
12/31/1986 10,000 10,000 10,000
12/31/1987 10,123 10,154 10,491
12/31/1988 11,155 10,933 10,918
12/31/1989 12,153 12,038 11,458
12/31/1990 12,990 12,853 12,201
12/31/1991 14,514 14,318 12,547
12/31/1992 15,452 15,574 12,929
12/31/1993 17,109 17,401 13,269
12/31/1994 16,309 16,587 13,618
12/31/1995 18,616 19,267 13,977
12/31/1996 19,319 20,185 14,437
Average Annual Total Returns
as of December 31, 1996
CMBF Lehman G.O.
1 Year 3.77% 4.74%
5 Years 5.89% 7.10%
10 Years 6.81% 7.28%
Past performance is not predictive of future
results
</TABLE>
-
13
<PAGE>
INVESTMENT REVIEW
-----------------------------------------------------------------
- ---- ----
-- COLUMBIA HIGH YIELD FUND --
------------------------------
[LOGO]
Columbia High Yield Fund returned 9.43% during 1996, solid performance during a
year when bonds along the entire yield curve were held back by rising interest
rates. Despite the challenging environment, Columbia High Yield Fund
significantly outperformed investment-grade bonds throughout the year, as yields
on high yield bonds declined and prices appreciated.
By mid-year, the bond market began to rally as the economy displayed signs of
slowing and investors no longer worried that the Federal Reserve would increase
rates. The rally proceeded through the end of November, and many bonds were able
to recover from previous losses. In December, however, new economic indicators
revealed that the economy was stronger than the bond market had been expecting.
Although bonds once again declined, the Fund did not decline by as much as
investment-grade bonds and, in fact, posted a modest gain in December.
Because the Fund focuses on "upper tier" non-investment grade securities, it did
not perform as well as the broader universe of junk bond funds. However, this
strategy helps the Fund to outperform when the broader junk bond market is out
of favor.
In keeping with the Fund's more conservative nature, just over half the
portfolio was rated Ba or higher on December 31, with 49% of the bonds rated B
by Moody's Investors Services. The Fund's average maturity and duration were
modestly shortened by year end to 4.7 years and 3.9 years, respectively.
GROWTH OF $10,000 SINCE INCEPTION
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
Columbia High Yield Fund Lipper High Yield Bond Fund Index Salomon BB
<S> <C> <C> <C>
10/1/1993 10,000 10,000 10,000
12/31/1993 10,112 10,498 10,185
3/31/1994 9,909 10,387 9,938
6/30/1994 9,845 10,249 9,840
9/30/1994 10,018 10,246 10,007
12/31/1994 10,019 10,112 10,047
3/31/1995 10,521 10,606 10,693
6/30/1995 11,106 11,165 11,454
9/30/1995 11,462 11,550 11,799
12/31/1995 11,935 11,870 12,321
3/31/1996 12,005 12,173 12,346
6/30/1996 12,032 12,368 12,431
9/30/1996 12,564 12,942 12,856
12/31/1996 13,059 13,372 13,428
Average Annual Total Returns
as of December 31, 1996
CHYF Salomon BB Lipper HYBF
1 Year 9.43% 8.99% 12.66%
Since Inception 8.42% 9.34% 9.20%
Past Performance is not predictive of future
results
</TABLE>
-
14
<PAGE>
FINANCIAL HIGHLIGHTS
-----------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
- ---- ----
-- COLUMBIA COMMON STOCK FUND, INC. --
--------------------------------------
<TABLE>
<CAPTION>
1996 1995 1994 1993 1992
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $18.59 $15.16 $15.29 $14.04 $13.15
Income from investment operations:
Net investment income..................................... .25 .26 .27 .22 .24
Net realized and unrealized gains on investments.......... 3.61 4.38 .04 2.08 1.06
- --------------------------------------------------------------------------------------------------------------------
Total from investment operations........................ 3.86 4.64 .31 2.30 1.30
- --------------------------------------------------------------------------------------------------------------------
Less distributions:
Dividends (from net investment income).................... (.23) (.26) (.25) (.21) (.24)
Distributions (from capital gains)........................ (2.96) (.95) (.19) (.84) (.17)
- --------------------------------------------------------------------------------------------------------------------
Total distributions..................................... (3.19) (1.21) (.44) (1.05) (.41)
Net asset value, end of period $19.26 $18.59 $15.16 $15.29 $14.04
Total return................................................ 20.71% 30.84% 2.06% 16.44% 9.99%
Ratios/Supplemental data
Net assets, end of period (in thousands).................... $536,760 $358,523 $124,263 $100,715 $51,049
Ratio of expenses to average net assets..................... .76% .80% .84% .84% .86%
Ratio of net investment income to average net assets........ 1.32% 1.68% 1.82% 1.48% 1.97%
Portfolio turnover rate..................................... 111.39% 75.36% 64.21% 90.90% 67.83%
Average commission rate paid on portfolio transactions
(1)........................................................ $0.0601
</TABLE>
(1) The average commission rate paid by the fund is computed by dividing the
dollar amount of commissions paid during the period by the total number of
shares purchased and sold during the period for which commissions were
charged.
- --------------------------------------------------------------------------------
-
15
<PAGE>
FINANCIAL HIGHLIGHTS
-----------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
- ---- ----
-- COLUMBIA GROWTH FUND, INC. --
--------------------------------
<TABLE>
<CAPTION>
1996 1995 1994 1993 1992
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $29.84 $24.84 $26.38 $26.18 $26.26
Income from investment operations:
Net investment income..................................... .19 .31 .29 .16 .17
Net realized and unrealized gains (losses) on
investments.............................................. 6.04 7.86 (.46) 3.24 2.93
- ---------------------------------------------------------------------------------------------------------------------
Total from investment operations........................ 6.23 8.17 (.17) 3.40 3.10
- ---------------------------------------------------------------------------------------------------------------------
Less distributions:
Dividends (from net investment income).................... (.17) (.29) (.26) (.18) (.20)
Distributions (from capital gains)........................ (5.14) (2.87) (1.11) (2.98) (2.98)
Distributions (in excess of capital gains)................ (.02) (.01) (.04)
- ---------------------------------------------------------------------------------------------------------------------
Total distributions..................................... (5.33) (3.17) (1.37) (3.20) (3.18)
Net asset value, end of period $30.74 $29.84 $24.84 $26.38 $26.18
Total return................................................ 20.80% 32.98% -.63% 13.01% 11.82%
Ratios/Supplemental data
Net assets, end of period (in thousands).................... $1,064,100 $848,731 $591,694 $605,401 $518,366
Ratio of expenses to average net assets..................... .71% .75% .81% .82% .86%
Ratio of net investment income to average net assets........ .63% 1.14% 1.12% .66% .77%
Portfolio turnover rate..................................... 75.49% 94.73% 79.28% 105.64% 116.38%
Average commission rate paid on portfolio transactions
(1)........................................................ $0.0590
</TABLE>
(1) The average commission rate paid by the fund is computed by dividing the
dollar amount of commissions paid during the period by the total number of
shares purchased and sold during the period for which commissions were
charged.
- --------------------------------------------------------------------------------
-
16
<PAGE>
FINANCIAL HIGHLIGHTS
-----------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
- ---- ----
-- COLUMBIA INTERNATIONAL STOCK FUND, INC. --
---------------------------------------------
<TABLE>
<CAPTION>
1996 1995 1994 1993 1992(1)
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $13.07 $12.43 $12.96 $9.95 $10.00
Income from investment operations:
Net investment income (loss).............................. .03 .02 (.02) (.02) (.03)
Net realized and unrealized gains (losses) on investments
and foreign currency transactions........................ 2.13 .62 (.30) 3.34 .11
- --------------------------------------------------------------------------------------------------------------------
Total from investment operations........................ 2.16 .64 (.32) 3.32 .08
- --------------------------------------------------------------------------------------------------------------------
Less distributions:
Dividends (from net investment income).................... (.03)
Dividends (in excess of net investment income)............ (.20)
Distributions (from capital gains)........................ (1.14) (.21) (.31) (.13)(2)
- --------------------------------------------------------------------------------------------------------------------
Total distributions..................................... (1.37) -- (.21) (.31) (.13)
Net asset value, end of period $13.86 $13.07 $12.43 $12.96 $9.95
Total return................................................ 16.59% 5.15% -2.47% 33.37% .60%(3)
Ratios/Supplemental data
Net assets, end of period (in thousands).................... $125,510 $100,873 $118,484 $73,047 $9,745
Ratio of expenses to average net assets..................... 1.54% 1.54% 1.52% 1.71% 2.22%
Ratio of net investment income (loss) to average net
assets..................................................... .22% .15% (.21)% (.62)% (1.28)%
Portfolio turnover rate..................................... 129.40% 156.09% 138.79% 144.78% 25.75%
Average commission rate paid on portfolio transactions
(4)........................................................ $0.0011
</TABLE>
(1) From inception of operations on September 10, 1992. Ratios and portfolio
turnover rates are annualized.
(2) Includes amounts distributed from net realized gains on foreign currency
transactions taxable as ordinary income.
(3) Not annualized.
(4) The average commission rate paid by the fund is computed by dividing the
dollar amount of commissions paid during the period by the total number of
shares purchased and sold during the period for which commissions were
charged.
- --------------------------------------------------------------------------------
-
17
<PAGE>
FINANCIAL HIGHLIGHTS
-----------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
- ---- ----
-- COLUMBIA SPECIAL FUND, INC. --
---------------------------------
<TABLE>
<CAPTION>
1996 1995 1994 1993 1992
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $21.44 $18.69 $19.51 $18.79 $17.45
Income from investment operations:
Net investment income (loss).............................. (.06) .03 .08 .01 (.03)
Net realized and unrealized gains on investments.......... 2.85 5.45 .36 4.04 2.41
- ----------------------------------------------------------------------------------------------------------------------
Total from investment operations........................ 2.79 5.48 .44 4.05 2.38
- ----------------------------------------------------------------------------------------------------------------------
Less distributions:
Dividends (from net investment income).................... (.02) (.07)
Dividends (in excess of net investment income)............ (.01)
Distributions (from capital gains)........................ (4.38) (2.68) (1.16) (3.32) (1.04)
Distributions (in excess of capital gains)................ (.03) (.03)
- ----------------------------------------------------------------------------------------------------------------------
Total distributions..................................... (4.38) (2.73) (1.26) (3.33) (1.04)
Net asset value, end of period $19.85 $21.44 $18.69 $19.51 $18.79
Total return................................................ 13.07% 29.53% 2.29% 21.68% 13.70%
Ratios/Supplemental data
Net assets, end of period (in thousands).................... $1,585,284 $1,384,415 $889,526 $772,741 $470,663
Ratio of expenses to average net assets..................... .94% .98% 1.05% 1.12% 1.19%
Ratio of net investment income (loss) to average net
assets..................................................... (.29)% .16% .40% .01% (.25)%
Portfolio turnover rate..................................... 150.07% 182.99% 178.91% 154.68% 116.75%
Average commission rate paid on portfolio transactions
(1)........................................................ $0.0553
</TABLE>
(1) The average commission rate paid by the fund is computed by dividing the
dollar amount of commissions paid during the period by the total number of
shares purchased and sold during the period for which commissions were
charged.
- --------------------------------------------------------------------------------
-
18
<PAGE>
FINANCIAL HIGHLIGHTS
-----------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
- ---- ----
-- COLUMBIA SMALL CAP FUND, INC. --
-----------------------------------
<TABLE>
<CAPTION>
1996(1)
<S> <C>
Net asset value, beginning of period $12.00
Income from investment operations:
Net realized and unrealized gains on investments............................................................ .99
- -------------------------------------------------------------------------------------------------------------------------
Total from investment operations.......................................................................... .99
Net asset value, end of period $12.99
Total return.................................................................................................. 7.62% (2)
Ratios/Supplemental data
Net assets, end of period (in thousands)...................................................................... $21,061
Ratio of expenses to average net assets....................................................................... 1.61%
Ratio of net investment income to average net assets.......................................................... 0.00%
Portfolio turnover rate....................................................................................... 32.57%
Average commission rate paid on portfolio transactions (3).................................................... $0.0546
</TABLE>
(1) From inception of operations on September 11, 1996. Ratios and portfolio
turnover rates are annualized.
(2) Not annualized.
(3) The average commission rate paid by the fund is computed by dividing the
dollar amount of commissions paid during the period by the total number of
shares purchased and sold during the period for which commissions were
charged.
- --------------------------------------------------------------------------------
-
19
<PAGE>
FINANCIAL HIGHLIGHTS
-----------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
- ---- ----
-- COLUMBIA REAL ESTATE EQUITY FUND, INC. --
--------------------------------------------
<TABLE>
<CAPTION>
1996 1995 1994(1)
<S> <C> <C> <C>
Net asset value, beginning of period $12.71 $11.72 $12.00
Income from investment operations:
Net investment income.............................................................. .77 .78 .49
Net realized and unrealized gains (losses) on investments.......................... 3.94 1.12 (.27 )
- -----------------------------------------------------------------------------------------------------------------------
Total from investment operations................................................. 4.71 1.90 .22
- -----------------------------------------------------------------------------------------------------------------------
Less distributions:
Dividends (from net investment income)............................................. (.52) (.49) (.31 )
Dividends (in excess of net investment income)..................................... (.01 )
Distributions (from capital gains)................................................. (.41)
Distributions (in excess of capital gains)......................................... (.12) (.14)
Tax return of capital.............................................................. (.21) (.28) (.18 )
- -----------------------------------------------------------------------------------------------------------------------
Total distributions.............................................................. (1.26) (.91) (.50 )
Net asset value, end of period $16.16 $12.71 $11.72
Total return......................................................................... 38.30% 16.86% 1.76% (2)
Ratios/Supplemental data
Net assets, end of period (in thousands)............................................. $68,073 $21,587 $17,402
Ratio of expenses to average net assets.............................................. 1.06% 1.18% 1.14%
Ratio of net investment income to average net assets................................. 6.23% 6.71% 6.28%
Portfolio turnover rate.............................................................. 45.82% 53.91% 7.61%
Average commission rate paid on portfolio transactions (3)........................... $0.0594
</TABLE>
(1) From inception of operations on March 16, 1994. Ratios and portfolio
turnover rates are annualized.
(2) Not annualized.
(3) The average commission rate paid by the fund is computed by dividing the
dollar amount of commissions paid during the period by the total number of
shares purchased and sold during the period for which commissions were
charged.
- --------------------------------------------------------------------------------
-
20
<PAGE>
FINANCIAL HIGHLIGHTS
-----------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
- ---- ----
-- COLUMBIA BALANCED FUND, INC. --
----------------------------------
<TABLE>
<CAPTION>
1996 1995 1994 1993 1992
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $20.08 $17.28 $17.91 $16.80 $16.05
Income from investment operations:
Net investment income..................................... .76 .73 .65 .56 .58
Net realized and unrealized gains (losses) on
investments.............................................. 1.58 3.54 (.64) 1.71 .82
- --------------------------------------------------------------------------------------------------------------------
Total from investment operations........................ 2.34 4.27 .01 2.27 1.40
- --------------------------------------------------------------------------------------------------------------------
Less distributions:
Dividends (from net investment income).................... (.76) (.73) (.64) (.56) (.57)
Dividends (in excess of net investment income)............ (.01)
Distributions (from capital gains)........................ (1.34) (.74) (.59) (.08)
- --------------------------------------------------------------------------------------------------------------------
Total distributions..................................... (2.10) (1.47) (.64) (1.16) (.65)
Net asset value, end of period $20.32 $20.08 $17.28 $17.91 $16.80
Total return................................................ 11.78% 25.08% .10% 13.62% 8.89%
Ratios/Supplemental data
Net assets, end of period (in thousands).................... $672,593 $486,767 $249,670 $186,589 $90,230
Ratio of expenses to average net assets..................... .66% .69% .72% .73% .81%
Ratio of net investment income to average net assets........ 3.82% 4.05% 3.82% 3.32% 4.08%
Portfolio turnover rate..................................... 133.21% 108.04% 98.48% 107.60% 138.08%
Average commission rate paid on portfolio transactions
(1)........................................................ $0.0596
</TABLE>
(1) The average commission rate paid by the fund is computed by dividing the
dollar amount of commissions paid during the period by the total number of
shares purchased and sold during the period for which commissions were
charged.
- --------------------------------------------------------------------------------
-
21
<PAGE>
FINANCIAL HIGHLIGHTS
-----------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
- ---- ----
-- COLUMBIA DAILY INCOME COMPANY --
-----------------------------------
<TABLE>
<CAPTION>
1996 1995 1994 1993 1992
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00 $1.00
Income from investment operations:
Net investment income..................................... .048 .053 .036 .025 .032
- --------------------------------------------------------------------------------------------------------------------
Total from investment operations........................ .048 .053 .036 .025 .032
- --------------------------------------------------------------------------------------------------------------------
Less distributions:
Dividends (from net investment income).................... (.048) (.053) (.036) (.025) (.032)
- --------------------------------------------------------------------------------------------------------------------
Total distributions..................................... (.048) (.053) (.036) (.025) (.032)
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00
Total return................................................ 4.96% 5.49% 3.68% 2.51% 3.25%
Ratios/Supplemental data
Net assets, end of period (in thousands).................... $889,800 $800,656 $730,067 $544,500 $591,186
Ratio of expenses to average net assets..................... .62% .64% .70% .75% .71%
Ratio of net investment income to average net assets........ 4.84% 5.34% 3.68% 2.49% 3.22%
</TABLE>
- --------------------------------------------------------------------------------
-
22
<PAGE>
FINANCIAL HIGHLIGHTS
-----------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
- ---- ----
-- COLUMBIA U.S. GOVERNMENT SECURITIES FUND, INC. --
----------------------------------------------------
<TABLE>
<CAPTION>
1996 1995 1994 1993 1992
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $8.34 $7.99 $8.36 $8.35 $8.47
Income from investment operations:
Net investment income..................................... .41 .45 .37 .32 .39
Net realized and unrealized gains (losses) on
investments.............................................. (.10) .35 (.37) .17 .09
- --------------------------------------------------------------------------------------------------------------------
Total from investment operations........................ .31 .80 -- .49 .48
- --------------------------------------------------------------------------------------------------------------------
Less distributions:
Dividends (from net investment income).................... (.41) (.45) (.37) (.32) (.39)
Distributions (from capital gains)........................ (.16) (.21)
- --------------------------------------------------------------------------------------------------------------------
Total distributions..................................... (.41) (.45) (.37) (.48) (.60)
Net asset value, end of period $8.24 $8.34 $7.99 $8.36 $8.35
Total return................................................ 3.85% 10.21% -.03% 5.91% 5.81%
Ratios/Supplemental data
Net assets, end of period (in thousands).................... $40,776 $41,842 $33,512 $35,877 $35,479
Ratio of expenses to average net assets..................... .80% .79% .81% .75% .76%
Ratio of net investment income to average net assets........ 4.99% 5.45% 4.51% 3.74% 4.60%
Portfolio turnover rate..................................... 179.38% 253.17% 253.80% 254.59% 289.05%
</TABLE>
- --------------------------------------------------------------------------------
-
23
<PAGE>
FINANCIAL HIGHLIGHTS
-----------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
- ---- ----
-- COLUMBIA FIXED INCOME SECURITIES FUND, INC. --
-------------------------------------------------
<TABLE>
<CAPTION>
1996 1995 1994 1993 1992
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $13.51 $12.16 $13.44 $13.28 $13.59
Income from investment operations:
Net investment income..................................... .85 .88 .83 .85 .95
Net realized and unrealized gains (losses) on
investments.............................................. (.43) 1.35 (1.28) .52 .09
- --------------------------------------------------------------------------------------------------------------------
Total from investment operations........................ 0.42 2.23 (.45) 1.37 1.04
- --------------------------------------------------------------------------------------------------------------------
Less distributions:
Dividends (from net investment income).................... (.85) (.88) (.83) (.85) (.95)
Distributions (from capital gains)........................ (.36) (.40)
- --------------------------------------------------------------------------------------------------------------------
Total distributions..................................... (.85) (.88) (.83) (1.21) (1.35)
Net asset value, end of period $13.08 $13.51 $12.16 $13.44 $13.28
Total return................................................ 3.37% 18.91% -3.36% 10.47% 7.99%
Ratios/Supplemental data
Net assets, end of period (in thousands).................... $356,421 $316,259 $252,090 $300,532 $262,647
Ratio of expenses to average net assets..................... .64% .65% .66% .66% .66%
Ratio of net investment income to average net assets........ 6.53% 6.80% 6.53% 6.14% 7.03%
Portfolio turnover rate..................................... 178.25% 137.41% 139.81% 118.80% 195.67%
</TABLE>
- --------------------------------------------------------------------------------
-
24
<PAGE>
FINANCIAL HIGHLIGHTS
-----------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
- ---- ----
-- COLUMBIA MUNICIPAL BOND FUND, INC. --
----------------------------------------
<TABLE>
<CAPTION>
1996 1995 1994 1993 1992
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $12.37 $11.48 $12.71 $12.17 $12.22
Income from investment operations:
Net investment income..................................... .61 .63 .64 .66 .69
Net realized and unrealized gains (losses) on
investments.............................................. (.16) .96 (1.23) .62 .07
- --------------------------------------------------------------------------------------------------------------------
Total from investment operations........................ .45 1.59 (.59) 1.28 .76
- --------------------------------------------------------------------------------------------------------------------
Less distributions:
Dividends (from net investment income) (1)................ (.61) (.63) (.64) (.66) (.69)
Distributions (from capital gains)........................ (.06) (.07) (.08) (.12)
- --------------------------------------------------------------------------------------------------------------------
Total distributions..................................... (.67) (.70) (.64) (.74) (.81)
Net asset value, end of period $12.15 $12.37 $11.48 $12.71 $12.17
Total return................................................ 3.77% 14.15% -4.68% 10.73% 6.46%
Ratios/Supplemental data
Net assets, end of period (in thousands).................... $375,667 $383,796 $339,817 $430,367 $341,924
Ratio of expenses to average net assets..................... .56% .57% .57% .58% .59%
Ratio of net investment income to average net assets........ 5.00% 5.22% 5.36% 5.25% 5.69%
Portfolio turnover rate..................................... 19.03% 21.45% 19.40% 9.92% 17.82%
</TABLE>
(1) 100% exempt from federal taxation.
- --------------------------------------------------------------------------------
-
25
<PAGE>
FINANCIAL HIGHLIGHTS
-----------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
- ---- ----
-- COLUMBIA HIGH YIELD FUND, INC. --
------------------------------------
<TABLE>
<CAPTION>
1996 1995 1994 1993(1)
<S> <C> <C> <C> <C>
Net asset value, beginning of period $9.88 $9.04 $9.94 $10.00
Income from investment operations:
Net investment income.................................................... .81 .82 .80 .18
Net realized and unrealized gains (losses) on investments................ .07 .84 (.90) (.06)
- ------------------------------------------------------------------------------------------------------------------------
Total from investment operations....................................... .88 1.66 (.10) .12
- ------------------------------------------------------------------------------------------------------------------------
Less distributions:
Dividends (from net investment income)................................... (.81) (.82) (.80) (.18)
Distributions (from capital gains)....................................... (.01)
- ------------------------------------------------------------------------------------------------------------------------
Total distributions.................................................... (.82) (.82) (.80) (.18)
Net asset value, end of period $9.94 $9.88 $9.04 $9.94
Total return............................................................... 9.43% 19.12% -.92% 1.12%(2)
Ratios/Supplemental data
Net assets, end of period (in thousands)................................... $28,818 $23,471 $12,834 $5,940
Ratio of expenses to average net assets (3)................................ 0.93% 1.00% 1.00% 1.00%
Ratio of net investment income to average net assets....................... 8.29% 8.62% 8.69% 7.30%
Portfolio turnover rate.................................................... 62.27% 51.60% 36.67% 0.00%
</TABLE>
(1) From inception of operations on September 15, 1993. Ratios and portfolio
turnover rates are annualized.
(2) Not annualized.
(3) The ratio was 1.00% in 1996, 1.06% in 1995, 1.19% in 1994 and 2.03% in
1993, before voluntary reimbursement of certain expenses by the investment
advisor.
- --------------------------------------------------------------------------------
-
26
<PAGE>
SCHEDULE OF INVESTMENTS
-----------------------------------------------------------------
[LOGO]
- --------------------- ---------------------
-- COLUMBIA COMMON STOCK FUND, INC. --
------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares or
Principal
December 31, 1996 Amount Value(1)
------------- --------------
<S> <C> <C>
Common Stocks (95.0%)
Banking & Finance (9.4%)
American Express Co. ................................................................. 100,900 $ 5,700,850
BankAmerica Corp. .................................................................... 73,800 7,361,550
First Chicago NBD Corp. .............................................................. 100,000 5,375,000
Great Western Financial Corp. ........................................................ 233,600 6,774,400
Morgan (J.P.) & Co., Inc. ............................................................ 74,300 7,253,537
NationsBank Corp. .................................................................... 52,500 5,131,875
PNC Bank Corp. ....................................................................... 157,900 5,940,988
U.S. Bancorp.......................................................................... 154,800 6,956,325
--------------
50,494,525
--------------
Building & Forestry Products (4.1%)
Champion International Corp. ......................................................... 258,100 11,162,825
Willamette Industries, Inc. .......................................................... 151,200 10,527,300
--------------
21,690,125
--------------
Business & Consumer Services (5.0%)
*ADT Ltd. ............................................................................ 330,000 7,548,750
Electronic Data Systems Corp. ........................................................ 229,500 9,925,875
Service Corp. Int'l. ................................................................. 337,500 9,450,000
--------------
26,924,625
--------------
Chemical (4.8%)
Grace (W.R.) & Co. ................................................................... 119,100 6,163,425
Hercules, Inc. ....................................................................... 171,100 7,400,075
IMC Global, Inc. ..................................................................... 183,000 7,159,875
Monsanto Co. ......................................................................... 126,700 4,925,462
--------------
25,648,837
--------------
Consumer Durable (3.6%)
Ford Motor Co. ....................................................................... 252,000 8,032,500
General Motors Corp. ................................................................. 200,000 11,150,000
--------------
19,182,500
--------------
Consumer Non-Durable (11.1%)
*Circus Circus Enterprises, Inc. ..................................................... 148,700 5,111,562
*Federated Department Stores, Inc. ................................................... 166,000 5,664,750
Marriott International, Inc. ......................................................... 97,000 5,359,250
Mattel, Inc. ......................................................................... 186,250 5,168,437
*Meyer (Fred), Inc. .................................................................. 300,000 10,650,000
Penney (J.C.), Inc. .................................................................. 109,200 5,323,500
*Price/Costco, Inc. .................................................................. 400,000 10,050,000
Rite Aid Corp. ....................................................................... 147,200 5,851,200
Rykoff-Sexton, Inc. .................................................................. 152,000 2,413,000
Sears, Roebuck & Co. ................................................................. 84,100 3,879,113
--------------
59,470,812
--------------
<CAPTION>
Shares or
Principal
Amount Value(1)
------------- --------------
<S> <C> <C>
<S> <C> <C>
Consumer Staples (4.0%)
Gillette Co. ......................................................................... 72,500 $ 5,636,875
Nabisco Holdings Corp. (Class A)...................................................... 127,000 4,937,125
PepsiCo, Inc. ........................................................................ 200,000 5,850,000
Procter & Gamble Co. ................................................................. 47,900 5,149,250
--------------
21,573,250
--------------
Energy (7.1%)
Amoco Corp. .......................................................................... 131,100 10,553,550
Mobil Corp. .......................................................................... 90,800 11,100,300
Royal Dutch Petroleum Co. ADR......................................................... 62,400 10,654,800
Union Pacific Resources Group, Inc. .................................................. 200,000 5,850,000
--------------
38,158,650
--------------
Entertainment & Media (1.7%)
Time Warner, Inc. .................................................................... 121,700 4,563,750
*Viacom, Inc. (Class B)............................................................... 135,500 4,725,562
--------------
9,289,312
--------------
Health (8.3%)
American Home Products Corp. ......................................................... 86,000 5,041,750
Bausch & Lomb, Inc. .................................................................. 156,000 5,460,000
Baxter International, Inc. ........................................................... 148,400 6,084,400
Johnson & Johnson..................................................................... 103,000 5,124,250
Merck & Co., Inc. .................................................................... 73,000 5,785,250
Pfizer, Inc. ......................................................................... 64,000 5,304,000
Pharmacia & Upjohn, Inc. ............................................................. 161,300 6,391,512
Warner-Lambert Co. ................................................................... 73,500 5,512,500
--------------
44,703,662
--------------
Insurance (3.2%)
Berkley (W.R.) Corp. ................................................................. 100,000 5,075,000
NAC Re Corp. ......................................................................... 60,400 2,046,050
TIG Holdings, Inc. ................................................................... 293,100 9,928,763
--------------
17,049,813
--------------
Machinery & Capital Spending (7.8%)
Case Corp. ........................................................................... 133,000 7,248,500
Caterpillar, Inc. .................................................................... 108,000 8,127,000
Deere & Co. .......................................................................... 206,700 8,397,188
Emerson Electric Co. ................................................................. 82,000 7,933,500
General Electric Co. ................................................................. 52,400 5,181,050
Honeywell, Inc. ...................................................................... 76,300 5,016,725
--------------
41,903,963
--------------
Metal Mining & Steel (6.4%)
Aluminum Company of America........................................................... 200,000 12,750,000
Homestake Mining Co. ................................................................. 708,000 10,089,000
</TABLE>
-
27
<PAGE>
SCHEDULE OF INVESTMENTS
-----------------------------------------------------------------
[LOGO]
- --------------------- ---------------------
-- COLUMBIA COMMON STOCK FUND, INC. --
------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares or
Principal
Amount Value(1)
------------- --------------
<S> <C> <C>
</TABLE>
Common Stocks (Continued)
<TABLE>
<S> <C> <C>
Newmont Mining Corp. ................................................................. 187,500 $ 8,390,625
Worthington Industries, Inc. ......................................................... 169,000 3,063,125
--------------
34,292,750
--------------
Real Estate Securities (8.9%)
American Health Properties, Inc. ..................................................... 120,000 2,865,000
Associated Estates Realty Corp. ...................................................... 157,400 3,738,250
Beacon Properties Corp. .............................................................. 124,100 4,545,162
Cali Realty Corp. .................................................................... 94,000 2,902,250
Equity Residential Properties Trust................................................... 125,000 5,156,250
First Industrial Realty Trust, Inc. .................................................. 150,000 4,556,250
Highwoods Properties, Inc. ........................................................... 73,000 2,463,750
JP Realty, Inc. ...................................................................... 106,500 2,755,688
Liberty Property Trust................................................................ 120,000 3,090,000
Manufactured Home Communities, Inc. .................................................. 49,000 1,139,250
National Health Investors, Inc. ...................................................... 100,000 3,787,500
Simon Debartolo Group, Inc. .......................................................... 190,400 5,902,400
Spieker Properties, Inc. ............................................................. 79,000 2,844,000
Sun Communities, Inc. ................................................................ 50,400 1,738,800
--------------
47,484,550
--------------
Technology (6.5%)
Adobe Systems, Inc. .................................................................. 253,000 9,455,875
Ericsson (L.M.) Telephone Co. (Class B) ADR........................................... 200,000 6,037,500
Intel Corp. .......................................................................... 45,000 5,892,188
International Business Machines Corp. ................................................ 33,500 5,058,500
Motorola, Inc. ....................................................................... 140,000 8,592,500
--------------
35,036,563
--------------
<CAPTION>
Shares or
Principal
Amount Value(1)
------------- --------------
<S> <C> <C>
<S> <C> <C>
Utilities/Communications (1.0%)
Frontier Corp. ....................................................................... 244,300 $ 5,527,288
--------------
Utilities/Electric/Gas (2.1%)
Central & South West Corp. ........................................................... 160,000 4,100,000
Idaho Power Co. ...................................................................... 236,600 7,364,175
--------------
11,464,175
--------------
Total Common Stocks
(Cost $449,007,291) ................................................................. 509,895,400
--------------
Repurchase Agreement (4.1%)
Goldman Sachs Corp.
6.354% dated 12/31/96,
due 01/02/1997 in the
amount of $22,295,837.
Collateralized by U.S. Treasury Bond
6.500% due 11/15/2026
(Cost $22,288,098)................................................................... $ 22,288,098 22,288,098
--------------
Total Investments (99.1%)
(Cost $471,295,389)...................................................................... 532,183,498
Receivables less liabilities (0.9%)....................................................... 4,576,304
--------------
Net Assets (100.0%)....................................................................... $ 536,759,802
--------------
--------------
</TABLE>
(1) See Note 1 of Notes to Financial Statements.
* Non-income producing
The accompanying notes are an integral part
of the financial statements.
-
28
<PAGE>
SCHEDULE OF INVESTMENTS
-----------------------------------------------------------------
[LOGO]
- ------------------------- -------------------------
-- COLUMBIA GROWTH FUND, INC. --
-------------------------------------------------
<TABLE>
<CAPTION>
Shares or
Principal
December 31, 1996 Amount Value(1)
------------- --------------
<S> <C> <C>
Common Stocks (98.5%)
Aerospace (1.0%)
Boeing Co. ........................................................................... 102,980 $ 10,954,497
--------------
Banking & Finance (8.7%)
BankAmerica Corp. .................................................................... 100,000 9,975,000
Barnett Banks, Inc. .................................................................. 200,000 8,225,000
Bear Stearns Cos., Inc. .............................................................. 204,021 5,687,085
Dean Witter, Discover & Co. .......................................................... 125,440 8,310,400
Federal Home Loan Mortgage Corp. ..................................................... 177,300 19,525,163
Federal National Mortgage Assn. ...................................................... 306,800 11,428,300
Morgan Stanley Group, Inc. ........................................................... 200,000 11,425,000
NationsBank Corp. .................................................................... 189,700 18,543,175
--------------
93,119,123
--------------
Building & Forestry Products (1.2%)
*Crown Vantage, Inc. ................................................................. 376,320 3,198,720
Mead Corp. ........................................................................... 156,600 9,102,375
--------------
12,301,095
--------------
Business & Consumer Services (5.1%)
*Computer Sciences Corp. ............................................................. 175,400 14,404,725
Danka Business Systems plc ADR........................................................ 125,000 4,421,875
Electronic Data Systems Corp. ........................................................ 200,900 8,688,925
*FIserv, Inc. ........................................................................ 260,000 9,555,000
*Mail-Well, Inc. ..................................................................... 400,000 6,550,000
Service Corp. Int'l. ................................................................. 398,300 11,152,400
--------------
54,772,925
--------------
Chemical (2.5%)
Grace (W.R.) & Co. ................................................................... 269,900 13,967,325
Hercules, Inc. ....................................................................... 300,000 12,975,000
--------------
26,942,325
--------------
Consumer Durable (1.0%)
Chrysler Corp. ....................................................................... 158,800 5,240,400
General Motors Corp. ................................................................. 94,500 5,268,375
--------------
10,508,775
--------------
Consumer Non-Durable (21.0%)
American Stores Co. .................................................................. 100,000 4,087,500
*Central Tractor Farm & Country, Inc. ................................................ 210,100 2,888,875
*Consolidated Stores Corp. ........................................................... 375,000 12,093,750
*Corporate Express, Inc. ............................................................. 357,300 10,518,018
*Dollar Tree Stores, Inc. ............................................................ 140,000 5,355,000
*Federated Department Stores, Inc. ................................................... 615,000 20,986,875
*HFS, Inc. ........................................................................... 425,000 25,393,750
Mattel, Inc. ......................................................................... 500,000 13,875,000
*Neiman-Marcus Group, Inc. ........................................................... 400,000 10,200,000
<CAPTION>
Shares or
Principal
Amount Value(1)
------------- --------------
<S> <C> <C>
<S> <C> <C>
*Price/Costco, Inc. .................................................................. 300,000 $ 7,537,500
Rite Aid Corp. ....................................................................... 660,325 26,247,919
*Saks Holdings, Inc. ................................................................. 140,600 3,796,200
Sears, Roebuck & Co. ................................................................. 399,800 18,440,775
*Toys "R" Us, Inc. ................................................................... 200,000 6,000,000
Unifi, Inc. .......................................................................... 100,000 3,212,500
*United Auto Group, Inc. ............................................................. 201,900 5,198,925
Warnaco Group, Inc. (Class A)......................................................... 1,600,000 47,400,000
--------------
223,232,587
--------------
Consumer Staples (6.7%)
Gillette Co. ......................................................................... 289,500 22,508,625
Libbey, Inc. ......................................................................... 325,000 9,059,375
Philip Morris Cos., Inc. ............................................................. 229,600 25,858,700
Richfood Holdings, Inc. .............................................................. 162,500 3,940,625
Sunbeam Corp. ........................................................................ 400,000 10,300,000
--------------
71,667,325
--------------
Energy (1.2%)
Anadarko Petroleum Corp. ............................................................. 112,000 7,252,000
Apache Corp. ......................................................................... 113,700 4,022,137
Union Pacific Resources Group, Inc. .................................................. 50,000 1,462,500
--------------
12,736,637
--------------
Energy Services (0.7%)
Schlumberger Ltd. .................................................................... 75,000 7,490,625
--------------
Entertainment & Media (2.0%)
Time Warner, Inc. .................................................................... 400,000 15,000,000
*Viacom, Inc. (Class B)............................................................... 175,000 6,103,125
--------------
21,103,125
--------------
Health (11.4%)
Aetna, Inc. .......................................................................... 195,000 15,600,000
*Amgen, Inc. ......................................................................... 200,000 10,875,000
*Apria Healthcare Group, Inc. ........................................................ 1,778,520 33,347,250
Bausch & Lomb, Inc. .................................................................. 100,000 3,500,000
*BioChem Pharma, Inc. ................................................................ 275,000 13,818,750
*Ethical Holdings Ltd. ADR............................................................ 300,000 1,743,750
*Genesis Health Ventures, Inc. ....................................................... 194,400 6,050,700
*Inhale Therapeutic Systems........................................................... 140,000 2,117,500
Johnson & Johnson..................................................................... 178,500 8,880,375
Merck & Co., Inc. .................................................................... 100,000 7,925,000
*Penederm, Inc. ...................................................................... 172,200 2,130,975
Warner-Lambert Co. ................................................................... 200,000 15,000,000
--------------
120,989,300
--------------
Hotels & Gaming (5.1%)
*Circus Circus Enterprises, Inc. ..................................................... 633,600 21,780,000
</TABLE>
-
29
<PAGE>
SCHEDULE OF INVESTMENTS
-----------------------------------------------------------------
[LOGO]
- ------------------------- -------------------------
-- COLUMBIA GROWTH FUND, INC. --
-------------------------------------------------
<TABLE>
<CAPTION>
Shares or
Principal
Amount Value(1)
------------- --------------
<S> <C> <C>
</TABLE>
Common Stocks (Continued)
<TABLE>
<S> <C> <C>
*Host Marriott Corp. ................................................................. 400,000 $ 6,400,000
Marriott International, Inc. ......................................................... 127,100 7,022,275
*MGM Grand, Inc. ..................................................................... 50,000 1,743,750
*Rio Hotel & Casino, Inc. ............................................................ 300,400 4,393,350
*Station Casinos, Inc. ............................................................... 1,226,600 12,419,325
--------------
53,758,700
--------------
Insurance (3.9%)
Allstate Corp. ....................................................................... 300,000 17,362,500
American International Group, Inc. ................................................... 96,150 10,408,238
Berkley (W.R.) Corp. ................................................................. 237,500 12,053,125
TIG Holdings, Inc. ................................................................... 50,000 1,693,750
--------------
41,517,613
--------------
Machinery & Capital Spending (5.8%)
Case Corp. ........................................................................... 200,000 10,900,000
Emerson Electric Co. ................................................................. 155,000 14,996,250
General Electric Co. ................................................................. 218,900 21,643,738
*Rockwell International Corp. ........................................................ 240,000 14,610,000
--------------
62,149,988
--------------
Metal Mining & Steel (0.3%)
Aluminum Company of America........................................................... 50,000 3,187,500
--------------
Real Estate Securities (5.6%)
Amli Residential Properties Trust..................................................... 180,500 4,219,187
Arden Realty Group, Inc. ............................................................. 89,000 2,469,750
Beacon Properties Corp. .............................................................. 237,100 8,683,788
Camden Property Trust................................................................. 166,250 4,758,906
Duke Realty Investments, Inc. ........................................................ 84,100 3,237,850
Equity Residential Properties Trust................................................... 219,900 9,070,875
Highwoods Properties, Inc. ........................................................... 200,000 6,750,000
JP Realty, Inc. ...................................................................... 350,000 9,056,250
Public Storage, Inc. ................................................................. 50,000 1,550,000
Simon Debartolo Group, Inc. .......................................................... 144,300 4,473,300
TriNet Corporate Realty Trust, Inc. .................................................. 146,000 5,183,000
--------------
59,452,906
--------------
Technology (14.2%)
Adobe Systems, Inc. .................................................................. 350,300 13,092,462
*Adtran, Inc. ........................................................................ 39,500 1,639,250
*Altera Corp. ........................................................................ 150,000 10,903,125
*Ascend Communications, Inc. ......................................................... 100,000 6,212,500
*Cascade Communications Corp. ........................................................ 100,000 5,512,500
*Cisco Systems, Inc. ................................................................. 170,000 10,816,250
*Compaq Computer Corp. ............................................................... 100,000 7,425,000
Computer Associates International, Inc. .............................................. 140,000 6,965,000
<CAPTION>
Shares or
Principal
Amount Value(1)
------------- --------------
<S> <C> <C>
<S> <C> <C>
Ericsson (L.M.) Telephone Co. (Class B) ADR........................................... 500,000 $ 15,093,750
*General Instrument Corp. ............................................................ 25,000 540,625
Intel Corp. .......................................................................... 175,000 22,914,063
Motorola, Inc. ....................................................................... 125,800 7,720,975
Nokia Corp. ADR (Class A)............................................................. 200,000 11,525,000
*Oracle Corp. ........................................................................ 328,350 13,708,613
*Tellabs, Inc. ....................................................................... 200,000 7,525,000
*3Com Corp. .......................................................................... 126,600 9,289,275
--------------
150,883,388
--------------
Utilities/Communications (1.1%)
*Paging Network, Inc. ................................................................ 500,000 7,625,000
Vodafone Group plc ADR................................................................ 100,000 4,137,500
--------------
11,762,500
--------------
Total Common Stocks
(Cost $867,008,781) ................................................................. 1,048,530,934
--------------
Convertible Bond (0.3%)
Consumer Non-Durable (0.3%)
Saks Holdings, Inc.
5.500% 09/15/2006
(Cost $3,000,000).................................................................... $ 3,000,000 2,745,000
--------------
Total investments, excluding temporary cash investment
(Cost $870,008,781) ................................................................. 1,051,275,934
--------------
Repurchase Agreement (0.8%)
Goldman Sachs Corp.
6.354% dated 12/31/1996,
due 01/02/1997 in the
amount of $8,045,753.
Collateralized by U.S. Treasury Bond
6.500% due 11/15/2026
(Cost $8,042,960).................................................................... 8,042,960 8,042,960
--------------
Total Investments (99.6%)
(Cost $878,051,741)...................................................................... 1,059,318,894
Receivables less liabilities (0.4%)....................................................... 4,780,625
--------------
Net Assets (100.0%)....................................................................... $1,064,099,519
--------------
--------------
</TABLE>
(1) See Note 1 of Notes to Financial Statements.
* Non-income producing.
The accompanying notes are an integral part
of the financial statements.
-
30
<PAGE>
SCHEDULE OF INVESTMENTS
-----------------------------------------------------------------
[LOGO]
- ------------------ ------------------
-- COLUMBIA INTERNATIONAL STOCK FUND, INC. --
---------------------------------------------
<TABLE>
<CAPTION>
Shares or
Principal
December 31, 1996 Amount Value(1)
------------- --------------
<S> <C> <C>
Common Stocks (86.1%)
Australia (1.8%)
Reinsurance Australia Corp., Ltd. (Insurance)......................................... 570,000 $ 2,218,201
Austria (0.9%)
OMV AG (Oil Exploration & Production)................................................. 5,500 619,625
Oesterreichische Elektrizitaetswirtschafts AG (Verbund) (Class A) (Utilities -
Electric)............................................................................ 7,000 523,482
--------------
1,143,107
--------------
Brazil (1.0%)
Companhia Energetica de Minas Gerais SA, ADR (Utilities - Electric)................... 22,776 773,701
Usinas Siderurgicas de Minas Gerais SA, ADR (Metals, Mining & Steel).................. 45,000 460,350
--------------
1,234,051
--------------
Canada (4.8%)
Bank of Nova Scotia (Banking)......................................................... 40,000 1,337,807
Bombardier, Inc. (Class B) (Manufacturing -
Diversified Inds.)................................................................... 80,000 1,476,403
Canadian Pacific Ltd. (Transportation)................................................ 27,500 723,156
*Future Shop Ltd., The (Retail)....................................................... 16,300 142,680
*Gulf Canada Resources Ltd. (Oil Exploration & Production)............................ 80,000 583,558
Northern Telecom Ltd. (Electronics)................................................... 22,000 1,367,277
Thomson Corp. (Publishing)............................................................ 16,000 353,053
--------------
5,983,934
--------------
Czech Republic (0.3%)
*Central European Media Enterprises Ltd. (Media)...................................... 11,300 358,775
--------------
Denmark (0.5%)
*Inwear Group AS (Retail)............................................................. 13,500 588,829
--------------
Finland (1.3%)
Finnlines Oy (Transportation)......................................................... 34,000 834,836
Rautaruukki Oy (Metals, Mining & Steel)............................................... 82,000 755,481
--------------
1,590,317
--------------
France (4.5%)
BIC SA (Consumer Products)............................................................ 3,000 449,538
Carrefour SA (Retail)................................................................. 1,200 780,277
Cie Financiere de Paribas SA (Financial Services)..................................... 6,600 446,059
Hermes International SA (Consumer Products)........................................... 1,200 332,820
L'Oreal SA (Consumer Products)........................................................ 1,300 489,253
<CAPTION>
Shares or
Principal
Amount Value(1)
------------- --------------
<S> <C> <C>
<S> <C> <C>
LVMH Moet Hennessy Louis Vuitton SA (Consumer Products)............................... 1,200 $ 334,900
Pinault-Printemps-Redoute SA (Retail)................................................. 1,400 554,931
Salomon SA (Entertainment & Leisure).................................................. 5,500 471,398
SEB SA (Consumer Products)............................................................ 4,000 783,513
Synthelabo SA (Pharmaceuticals)....................................................... 3,600 388,983
Total SA (Class B) (Oil Exploration & Production)..................................... 7,000 568,952
--------------
5,600,624
--------------
Germany (4.0%)
Bayer AG (Chemicals).................................................................. 50,000 2,040,286
Gehe AG (Wholesale Distributor)....................................................... 10,000 640,026
Mannesmann AG (Machinery & Capital Spending).......................................... 2,400 1,040,156
SGL Carbon AG (Metals, Mining & Steel)................................................ 10,000 1,260,559
--------------
4,981,027
--------------
Hong Kong (7.0%)
Cheung Kong Holdings Ltd. (Real Estate)............................................... 80,000 711,099
China Overseas Land & Investment Ltd. (Conglomerate).................................. 1,800,000 913,440
*China Resources Beijing Land Ltd. (Real Estate)...................................... 822,000 520,758
CITIC Pacific Ltd. (Conglomerate)..................................................... 146,000 847,553
COSCO Pacific Ltd. (Container Leasing)................................................ 920,000 1,070,528
Guangnan Holdings (Wholesale Distributor)............................................. 1,700,000 1,461,633
HSBC Holdings plc (Banking)........................................................... 96,000 2,054,173
Hutchison Whampoa Ltd. (Consumer Products)............................................ 160,000 1,256,707
--------------
8,835,891
--------------
India (2.3%)
Bajaj Auto Ltd., GDR (Motor Vehicles & Parts)......................................... 20,000 666,260
Indian Hotels Co., Ltd., The, GDR (Entertainment & Leisure)........................... 30,000 759,300
*Industrial Credit & Investment Corp. of India Ltd., The, GDR (Financial Services).... 42,500 403,750
Larsen & Toubro Ltd., GDR (Engineering & Construction)................................ 40,000 583,000
Tata Engineering & Locomotive Co., Ltd., GDS (Motor Vehicles & Parts)................. 50,000 534,400
--------------
2,946,710
--------------
Italy (3.0%)
Bulgari S.p.A., ADR (Consumer Products)............................................... 40,000 811,596
</TABLE>
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<TABLE>
<CAPTION>
Shares or
Principal
Amount Value(1)
------------- --------------
<S> <C> <C>
</TABLE>
Common Stocks (Continued)
<TABLE>
<S> <C> <C>
Ente Nazionale Idrocarburi S.p.A (Oil Exploration & Production)....................... 130,000 $ 668,241
Fiat S.p.A (Motor Vehicles & Parts)................................................... 350,000 1,053,920
Gucci Group NV (Consumer Products).................................................... 9,500 605,910
Telcom Italia S.p.A (Utilities - Communications)...................................... 265,000 687,813
--------------
3,827,480
--------------
Japan (21.1%)
Bellsystem 24, Inc. (Business Services)............................................... 3,000 395,656
BRIDGESTONE CORP. (Motor Vehicles &
Parts)............................................................................... 32,000 606,844
CANON, INC. (Electronics)............................................................. 28,000 617,878
DENSO CORP. (Motor Vehicles & Parts).................................................. 23,000 553,142
East Japan Railway Co. (Transportation)............................................... 74 332,333
Fuji Photo Film Co., Ltd. (Entertainment & Leisure)................................... 22,000 724,420
Hitachi Maxell Ltd. (Electronics)..................................................... 36,000 794,414
HOYA Corp. (Manufacturing)............................................................ 12,000 470,649
Isetan Co., Ltd. (Retail)............................................................. 38,000 491,337
JUSCO CO., LTD. (Retail).............................................................. 8,000 271,011
KAJIMA CORP. (Construction)........................................................... 32,000 228,394
Kao Corp. (Consumer Products)......................................................... 20,000 232,739
KEYENCE CORP. (Electronics)........................................................... 6,000 739,591
Kinki Nippon Railway Co., Ltd. (Transportation)....................................... 40,000 249,289
KOMATSU LTD. (Machinery & Capital Spending)........................................... 60,000 491,337
KUBOTA CORP. (Machinery & Capital Spending)........................................... 70,000 337,298
Laox Co., Ltd. (Retail)............................................................... 28,600 433,894
MABUCHI MOTOR CO., LTD. (Electrical Equipment)........................................ 8,000 402,034
Matsushita-Kotobuki Electronics Inds., Ltd. (Electronics)............................. 14,000 364,451
Mitsubishi Corp. (Wholesale Distributor).............................................. 65,000 672,356
Mitsubishi Estate Co., Ltd. (Real Estate)............................................. 140,000 1,436,083
Mitsubishi Heavy Inds., Ltd. (Machinery & Capital Spending)........................... 90,000 713,732
NEC Corp. (Electronics)............................................................... 40,000 482,717
Nintendo Co., Ltd. (Entertainment & Leisure).......................................... 9,000 640,031
NIPPON STEEL CORP. (Metals, Mining & Steel)........................................... 200,000 589,604
NIPPON TELEGRAPH & TELEPHONE CORP. (Utilities-Communication).......................... 100 756,831
<CAPTION>
Shares or
Principal
Amount Value(1)
------------- --------------
<S> <C> <C>
<S> <C> <C>
Nippon Television Network Corp. (Media)............................................... 1,700 $ 512,887
NTT Data Communications Systems Corp. (Business Services)............................. 35 1,022,757
ROHM CO., LTD. (Electronics).......................................................... 17,000 1,113,697
SANKYO CO., LTD. (Pharmaceuticals).................................................... 18,000 508,922
Sawako Corp. (Construction)........................................................... 15,600 309,284
Sharp Corp. (Electronics)............................................................. 48,000 682,700
Shiseido Co., Ltd. (Consumer Products)................................................ 90,000 1,039,566
SONY CORP. (Electronics).............................................................. 30,000 1,962,762
Takeda Chemical Inds., Ltd. (Pharmaceuticals)......................................... 41,000 858,805
TORAY INDUSTRIES, INC. (Chemicals).................................................... 75,000 462,245
TOYOTA MOTOR CORP. (Motor Vehicles & Parts)........................................... 105,000 3,013,964
TRANS COSMOS, INC. (Business Services)................................................ 6,000 189,294
USHIO, INC. (Electronics)............................................................. 30,000 325,834
YOKOGAWA ELECTRIC CORP. (Electronics)................................................. 50,000 430,997
--------------
26,461,779
--------------
Korea (1.2%)
*CITC Seoul Excel Trust, IDR (Investment Trust)....................................... 130,000 871,000
Daehan Blue-Chip Index Trust, IDR (Investment Trust).................................. 45,000 675,900
--------------
1,546,900
--------------
Malaysia (3.5%)
*Konsortium Perkapalan Berhad (Transportation)........................................ 115,000 774,257
Malayan Banking Berhad (Banking)...................................................... 116,000 1,286,337
Mancon Berhad (Engineering & Construction)............................................ 186,666 569,239
Tenaga Nasional Berhad (Utilities - Electric)......................................... 211,000 1,011,129
United Engineers of Malaysia Ltd., Berhad (Construction).............................. 80,000 722,376
--------------
4,363,338
--------------
Netherlands (4.2%)
Aegon NV (Insurance).................................................................. 25,490 1,623,914
Elsevier NV (Publishing).............................................................. 80,000 1,351,695
Koninklijke Ahold NV (Retail)......................................................... 8,080 504,942
NV Verenidge Bedrijven Nutricia (Certificates) (Food & Beverages)..................... 4,821 732,272
Royal Dutch Petroleum Co. (Oil Exploration & Production).............................. 2,600 455,700
</TABLE>
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<TABLE>
<CAPTION>
Shares or
Principal
Amount Value(1)
------------- --------------
<S> <C> <C>
</TABLE>
Common Stocks (Continued)
<TABLE>
<S> <C> <C>
Vendex International NV (Certificates) (Retail)....................................... 13,105 $ 560,386
--------------
5,228,909
--------------
Portugal (0.5%)
Telecel - Comunicacoes Pessoais, S.A. (Utilities - Communications).................... 10,000 637,887
--------------
Spain (1.1%)
Aguas de Barcelona SA (Utilities - Water)............................................. 20,000 830,897
Repsol SA, ADR (Oil Exploration & Production)......................................... 16,000 610,000
--------------
1,440,897
--------------
Sweden (1.7%)
Assa Abloy AB (Class B) (Manufacturing - Diversified Inds.)........................... 30,000 545,454
*Scandic Hotels AB (Entertainment & Leisure).......................................... 38,000 635,191
SSAB Svenskt Stal AB (Class B) (Metals, Mining & Steel)............................... 25,000 417,889
Telefonaktiebolaget LM Ericsson, ADR (Electronics).................................... 20,000 603,750
--------------
2,202,284
--------------
Switzerland (3.5%)
ABB AG (Bearer) (Electrical Equipment)................................................ 750 931,208
CS Holdings AG (Registered) (Financial Services)...................................... 6,500 666,480
*Novartis AG (Bearer) (Pharmaceuticals)............................................... 1,599 1,826,747
SGS Societe Generale De Surveillance Holding SA (Bearer) (Business Services).......... 375 920,022
--------------
4,344,457
--------------
Taiwan (0.7%)
Cathay Life Insurance Co. Ltd. (Insurance)............................................ 70,000 445,779
President Enterprises Corp. (Food & Beverages)........................................ 295,000 459,461
--------------
905,240
--------------
Thailand (1.7%)
Bank of Ayudhya Public Co., Ltd. (Banking)............................................ 116,000 273,820
PTT Exploration & Production Public Co., Ltd. (Oil Exploration & Production).......... 85,000 1,227,078
Siam Cement Public Co., Ltd., The (Building Materials)................................ 14,300 448,584
<CAPTION>
Shares or
Principal
Amount Value(1)
------------- --------------
<S> <C> <C>
<S> <C> <C>
Tipco Asphalt Public Co., Ltd. (Construction)......................................... 23,200 $ 141,209
--------------
2,090,691
--------------
United Kingdom (15.5%)
Associated British Foods plc (Food & Beverages)....................................... 62,000 514,328
Barclays plc (Banking)................................................................ 50,639 867,474
British Aerospace plc (Aircraft & Aerospace).......................................... 108,434 2,376,457
British Airways plc (Transportation).................................................. 35,000 362,858
British Petroleum Co., plc (Oil Exploration & Production)............................. 214,002 2,566,732
British Sky Broadcasting Group plc (Media)............................................ 30,000 268,131
Compass Group plc (Restaurants)....................................................... 78,000 824,681
Electrocomponents plc (Electronics)................................................... 86,469 684,001
Granada Group plc (Entertainment & Leisure)........................................... 60,000 885,036
Hays plc (Business Services).......................................................... 120,000 1,151,626
Next plc (Retail)..................................................................... 80,000 777,339
PizzaExpress plc (Restaurants)........................................................ 37,400 337,791
Provident Financial plc (Financial Services).......................................... 134,538 1,157,539
Prudential Corp. (Insurance).......................................................... 52,639 442,982
Rentokil Initial plc (Business Services).............................................. 90,000 676,490
Reuters Holdings plc (Business Services).............................................. 60,000 772,031
Sage Group plc (Business Services).................................................... 80,000 725,973
Siebe plc (Machinery & Capital Spending).............................................. 72,295 1,339,337
Smiths Industries plc (Manufacturing - Diversified Inds.)............................. 28,000 384,012
Wetherspoon, J.D. plc (Restaurants)................................................... 50,289 1,007,426
WPP Group plc (Business Services)..................................................... 160,000 695,838
Zeneca Group plc (Pharmaceuticals).................................................... 24,000 677,004
--------------
19,495,086
--------------
Total Common Stocks
(Cost $91,488,023) .................................................................. 108,026,414
--------------
Preferred Stocks (4.3%)
Brazil (4.3%)
Bardella Industrias Mecanicas SA (Manufacturing - Diversified Inds.).................. 4,000 381,134
Companhia Cervejaria Brahma SA (Food & Beverages)..................................... 2,140,000 1,170,007
Companhia Tecidos do Norte de Minas SA (Textiles)..................................... 1,195,000 381,436
DIXIE TOGA SA (Containers)............................................................ 437,500 332,684
Petroleo Brasileiro SA (Oil Exploration & Production)................................. 4,000,000 637,212
</TABLE>
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<TABLE>
<CAPTION>
Shares or
Principal
Amount Value(1)
------------- --------------
<S> <C> <C>
</TABLE>
Preferred Stocks (Continued)
<TABLE>
<S> <C> <C>
Telecommunicacoes Brasileiras SA (Utilities - Communication).......................... 30,000,000 $ 2,310,136
*Wentex Textil SA (Textiles).......................................................... 50,000 154,009
--------------
Total Preferred Stocks
(Cost $5,291,838) ................................................................... 5,366,618
--------------
Warrants (1.4%)
Germany (1.0%)
*Veba AG (04/06/1998) (Utilities - Electric).......................................... 4,000 1,281,351
--------------
Japan (0.4%)
*Kyocera Corp. #2 (01/23/1998) (Electronics).......................................... 865 562,250
*Mr. Max Corp. (02/17/1998) (Retail).................................................. 5,000 3,729
--------------
565,979
--------------
Total Warrants
(Cost $1,782,383) ................................................................... 1,847,330
--------------
Convertible Bond (1.6%)
Italy (1.6%)
I.N.A. S.p.A Privatisation Exchange Note (Insurance) 5.000% 06/28/2001 (Cost
$2,000,000).......................................................................... $ 2,000,000 1,965,000
--------------
Total investments, excluding temporary cash investments
(Cost $100,562,244) ................................................................. 117,205,362
--------------
Repurchase Agreements (8.4%)
Goldman Sachs Corp.
6.354% dated 12/31/1996,
due 01/02/1997 in the
amount of $6,469,988.
Collateralized by U.S. Treasury Bond
6.500% due 11/15/2026. .............................................................. 6,467,742 6,467,742
<CAPTION>
Shares or
Principal
Amount Value(1)
------------- --------------
<S> <C> <C>
<S> <C> <C>
J.P. Morgan Securities, Inc.
6.789% dated 12/31/1996,
due 01/02/1997 in the
amount of $4,051,502.
Collateralized by U.S. Treasury Bonds
6.000% to 14.000%
due 05/15/2005 to 11/15/2026,
U.S. Treasury Notes
5.625% to 8.750%
due 10/31/1997 to 02/15/2006. ....................................................... $ 4,050,000 $ 4,050,000
--------------
Total Repurchase Agreements
(Cost $10,517,742) .................................................................. 10,517,742
--------------
Total Investments (101.8%)
(Cost $111,079,986)...................................................................... 127,723,104
Cash and receivables less liabilities (-1.8%)............................................. (2,213,513)
--------------
Net Assets (100%)......................................................................... $ 125,509,591
--------------
--------------
</TABLE>
(1) See Note 1 of Notes to Financial Statements.
* Non-income producing
The accompanying notes are an integral part
of the financial statements.
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<TABLE>
<CAPTION>
Shares or
Principal
December 31, 1996 Amount Value(1)
------------- --------------
<S> <C> <C>
Common Stocks (93.9%)
Banking & Finance (11.3%)
Aames Financial Corp. ................................................................ 300,000 $ 10,762,500
Alex. Brown, Inc. .................................................................... 150,000 10,875,000
*ContiFinancial Corp. ................................................................ 270,000 9,753,750
First Security Corp. ................................................................. 500,000 16,875,000
First USA, Inc. ...................................................................... 400,000 13,850,000
Firstar Corp. ........................................................................ 200,000 10,500,000
Great Western Financial Corp. ........................................................ 300,000 8,700,000
Green Tree Financial Corp. ........................................................... 400,000 15,450,000
GreenPoint Financial Corp. ........................................................... 240,000 11,370,000
Household International, Inc. ........................................................ 100,000 9,225,000
Sovereign Bancorp, Inc. .............................................................. 400,000 5,250,000
Standard Federal Bancorp.............................................................. 350,000 19,906,250
Summit Bancorp........................................................................ 250,000 10,937,500
U.S. Bancorp.......................................................................... 400,000 17,975,000
Washington Federal, Inc. ............................................................. 310,000 8,215,000
--------------
179,645,000
--------------
Building & Forestry Products (5.9%)
*BMC West Corp. ...................................................................... 500,000 6,125,000
Champion International Corp. ......................................................... 400,000 17,300,000
Georgia-Pacific Corp. ................................................................ 200,000 14,400,000
Lafarge Corp. ........................................................................ 250,000 5,031,250
Mosinee Paper Corp. .................................................................. 300,000 10,650,000
Stone Container Corp. ................................................................ 700,000 10,412,500
Temple-Inland, Inc. .................................................................. 190,000 10,283,750
Wausau Paper Mills Co. ............................................................... 302,000 5,587,000
Willamette Industries, Inc. .......................................................... 200,000 13,925,000
--------------
93,714,500
--------------
Business & Consumer Services (9.0%)
*AccuStaff, Inc. ..................................................................... 385,000 8,133,125
*American Management Systems, Inc. ................................................... 100,000 2,450,000
*CBT Group Public Ltd. ADR............................................................ 154,200 8,365,350
Danka Business Systems plc ADR........................................................ 455,000 16,095,625
DENTSPLY International, Inc. ......................................................... 350,000 16,625,000
*Diamond Home Services, Inc. ......................................................... 350,000 9,625,000
*Firearms Training Systems, Inc. (Class A)............................................ 245,000 2,878,750
*FIserv, Inc. ........................................................................ 375,000 13,781,250
*Ingram Micro, Inc. (Class A)......................................................... 325,000 7,475,000
*Prime Service, Inc. ................................................................. 333,800 9,179,500
*Renaissance Solutions, Inc. ......................................................... 208,500 9,330,375
*Romac International, Inc. ........................................................... 350,000 7,700,000
*United Dental Care, Inc. ............................................................ 487,500 14,807,812
Unitog Co. ........................................................................... 300,000 8,175,000
<CAPTION>
Shares or
Principal
Amount Value(1)
------------- --------------
<S> <C> <C>
<S> <C> <C>
Watsco, Inc. ......................................................................... 300,000 $ 8,662,500
--------------
143,284,287
--------------
Chemical (0.8%)
Potash Corp. of Saskatchewan, Inc. ................................................... 150,000 12,750,000
--------------
Consumer Non-Durable (10.5%)
Apple South, Inc. .................................................................... 618,200 8,345,700
*Borders Group, Inc. ................................................................. 550,000 19,731,250
*Eastbay, Inc. ....................................................................... 250,000 6,000,000
Gap, Inc. ............................................................................ 450,000 13,556,250
*General Nutrition Cos., Inc. ........................................................ 500,000 8,437,500
*Kohl's Corp. ........................................................................ 300,000 11,775,000
*Landry's Seafood Restaurants, Inc. .................................................. 200,000 4,275,000
*Logan's Roadhouse, Inc. ............................................................. 250,000 5,875,000
*Lone Star Steakhouse & Saloon, Inc. ................................................. 700,000 18,725,000
*Meyer (Fred), Inc. .................................................................. 300,000 10,650,000
*Mossimo, Inc. ....................................................................... 450,000 5,568,750
*Price/Costco, Inc. .................................................................. 600,000 15,075,000
*Quality Food Centers, Inc. .......................................................... 300,000 10,125,000
*Sports Authority, Inc. (The)......................................................... 600,000 13,050,000
Warnaco Group, Inc. (Class A)......................................................... 300,000 8,887,500
*Zale Corp. .......................................................................... 300,000 5,737,500
--------------
165,814,450
--------------
Energy (1.3%)
*Abacan Resource Corp. ............................................................... 650,000 5,646,875
YPF Sociedad Anonima ADR.............................................................. 600,000 15,150,000
--------------
20,796,875
--------------
Energy Services (6.1%)
*BJ Services Co. ..................................................................... 250,000 12,750,000
*GeoScience Corp. .................................................................... 400,000 5,200,000
*J. Ray McDermott, S.A. .............................................................. 250,000 5,500,000
*Nabors Industries, Inc. ............................................................. 700,000 13,475,000
*Noble Drilling Corp. ................................................................ 640,000 12,720,000
*Pride Petroleum Services, Inc. ...................................................... 700,000 16,275,000
*Smith International, Inc. ........................................................... 200,000 8,975,000
Transocean Offshore, Inc. ............................................................ 197,500 12,368,438
*Weatherford Enterra, Inc. ........................................................... 300,000 9,000,000
--------------
96,263,438
--------------
Entertainment & Media (4.3%)
*Clear Channel Communications, Inc. .................................................. 500,000 18,062,500
*Evergreen Media Corp. (Class A)...................................................... 500,000 12,500,000
*Regal Cinemas, Inc. ................................................................. 500,000 15,375,000
*SFX Broadcasting, Inc. (Class A)..................................................... 275,000 8,181,250
*Universal Outdoor Holdings, Inc. .................................................... 166,000 3,901,000
</TABLE>
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<TABLE>
<CAPTION>
Shares or
Principal
Amount Value(1)
------------- --------------
<S> <C> <C>
</TABLE>
Common Stocks (Continued)
<TABLE>
<S> <C> <C>
*WMS Industries, Inc. ................................................................ 500,000 $ 10,000,000
--------------
68,019,750
--------------
Health (8.0%)
*Apria Healthcare Group, Inc. ........................................................ 830,000 15,562,500
*Dura Pharmaceuticals, Inc. .......................................................... 300,000 14,325,000
*Elan Corp. plc ADR................................................................... 300,000 9,975,000
*Enterprise Systems, Inc. ............................................................ 250,000 5,875,000
*ESC Medical Systems Ltd. ............................................................ 150,000 3,825,000
*Gilead Sciences, Inc. ............................................................... 275,000 6,875,000
HBO & Co. ............................................................................ 220,000 13,062,500
*IDX Systems Corp. ................................................................... 100,000 2,862,500
*IMNET Systems, Inc. ................................................................. 100,000 2,425,000
*Medic Computer Systems, Inc. ........................................................ 250,000 10,078,125
*Renal Treatment Centers, Inc. ....................................................... 600,000 15,300,000
*ResMed, Inc. ........................................................................ 605,000 13,310,000
*Vivra, Inc. ......................................................................... 450,000 12,431,250
--------------
125,906,875
--------------
Hotels & Gaming (1.6%)
*Circus Circus Enterprises, Inc. ..................................................... 450,000 15,468,750
*Station Casinos, Inc. ............................................................... 950,000 9,618,750
--------------
25,087,500
--------------
Insurance (1.2%)
CMAC Investment Corp. ................................................................ 141,600 5,203,800
Mutual Risk Management Ltd. .......................................................... 353,333 13,073,321
--------------
18,277,121
--------------
Machinery & Capital Spending (5.7%)
Albany International Corp. (Class A).................................................. 525,000 12,140,625
Applied Power, Inc. (Class A)......................................................... 330,000 13,076,250
*Avondale Industries, Inc. ........................................................... 450,000 9,675,000
Case Corp. ........................................................................... 165,000 8,992,500
Deere & Co. .......................................................................... 350,000 14,218,750
Fluor Corp. .......................................................................... 200,000 12,550,000
*Jacobs Engineering Group, Inc. ...................................................... 452,000 10,678,500
Measurex Corp. ....................................................................... 400,000 9,600,000
--------------
90,931,625
--------------
Metal Mining & Steel (7.0%)
Aluminum Company of America........................................................... 250,000 15,937,500
Barrick Gold Corp. ................................................................... 400,000 11,500,000
*Bethlehem Steel Corp. ............................................................... 1,200,000 10,800,000
Freeport-McMoRan Copper & Gold, Inc. (Class A)........................................ 500,000 14,062,500
Homestake Mining Co. ................................................................. 1,000,000 14,250,000
<CAPTION>
Shares or
Principal
Amount Value(1)
------------- --------------
<S> <C> <C>
<S> <C> <C>
Newmont Mining Corp. ................................................................. 500,000 $ 22,375,000
Schnitzer Steel Industries, Inc. (Class A)............................................ 500,000 12,812,500
*TVX Gold, Inc. ...................................................................... 1,250,000 9,687,500
--------------
111,425,000
--------------
Pollution Control (0.7%)
*Air & Water Technologies Corp. (Class A)............................................. 467,500 2,688,125
*Osmonics, Inc. ...................................................................... 400,000 8,800,000
--------------
11,488,125
--------------
Real Estate Securities (1.0%)
Simon Debartolo Group, Inc. .......................................................... 500,000 15,500,000
--------------
Technology (13.4%)
Adobe Systems, Inc. .................................................................. 400,000 14,950,000
*Adtran, Inc. ........................................................................ 180,000 7,470,000
*Allen Group, Inc. ................................................................... 550,000 12,237,500
*Analog Devices, Inc. ................................................................ 400,000 13,550,000
*Bay Networks, Inc. .................................................................. 400,000 8,350,000
*Brightpoint, Inc. ................................................................... 660,750 19,657,312
*Checkpoint Systems, Inc. ............................................................ 630,000 15,592,500
*Coherent Communications Systems
Corp. ............................................................................... 400,000 7,800,000
*General Instrument Corp. ............................................................ 500,000 10,812,500
*Harmonic Lightwaves, Inc. ........................................................... 540,000 8,302,500
*Hyperion Software Corp. ............................................................. 300,000 6,375,000
*Integrated Measurement Systems, Inc. ................................................ 170,000 2,953,750
*Loral Space & Communications Corp.................................................... 200,000 3,675,000
*Ortel Corp. ......................................................................... 385,000 9,240,000
*PairGain Technologies, Inc. ......................................................... 250,000 7,609,375
*Planning Sciences International plc ADR.............................................. 245,000 2,940,000
*Premisys Communications, Inc. ....................................................... 170,000 5,737,500
*Rational Software Corp. ............................................................. 145,000 5,736,563
*Sun Microsystems, Inc. .............................................................. 510,000 13,100,625
*Sync Research, Inc. ................................................................. 148,800 2,046,000
System Software Associates, Inc. ..................................................... 515,000 5,471,875
*VIASOFT, Inc. ....................................................................... 125,000 5,906,250
*Xilinx, Inc. ........................................................................ 385,000 14,172,813
*Xylan Corp. ......................................................................... 250,000 7,062,500
*3D Labs, Inc. Ltd. .................................................................. 73,500 1,690,500
--------------
212,440,063
--------------
Transportation (1.7%)
Airborne Freight Corp. ............................................................... 500,000 11,687,500
*Celadon Group, Inc. ................................................................. 580,000 6,380,000
Consolidated Freightways, Inc. ....................................................... 400,000 8,900,000
--------------
26,967,500
--------------
</TABLE>
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- -------------------------- --------------------------
-- COLUMBIA SPECIAL FUND, INC. --
---------------------------------
<TABLE>
<CAPTION>
Shares or
Principal
Amount Value(1)
------------- --------------
<S> <C> <C>
</TABLE>
Common Stocks (Continued)
<TABLE>
<S> <C> <C>
Utilities/Communications (4.4%)
*Arch Communications Group, Inc. ..................................................... 500,000 $ 4,687,500
*Cellular Communications International,
Inc. ................................................................................ 229,000 6,641,000
Cincinnati Bell, Inc. ................................................................ 175,000 10,784,375
*CommNet Cellular, Inc. .............................................................. 350,000 9,756,250
Frontier Corp. ....................................................................... 500,000 11,312,500
*Geotek Communications, Inc. ......................................................... 500,000 3,562,500
*NEXTEL Communications, Inc. (Class A)................................................ 750,000 9,796,875
*Paging Network, Inc. ................................................................ 850,000 12,962,500
--------------
69,503,500
--------------
Total Common Stocks
(Cost $1,399,532,531) ............................................................... 1,487,815,609
--------------
Repurchase Agreements (7.4%)
Goldman Sachs Corp.
6.354% dated 12/31/1996,
due 01/02/1997 in the
amount of $75,446,077.
Collateralized by U.S. Treasury Bond
6.500% due 11/15/2026 ............................................................... $ 75,419,890 75,419,890
<CAPTION>
Shares or
Principal
Amount Value(1)
------------- --------------
<S> <C> <C>
<S> <C> <C>
J.P. Morgan Securities, Inc.
6.789% dated 12/31/1996,
due 01/02/1997 in the
amount of $42,015,581.
Collateralized by U.S. Treasury Bonds
6.000% to 14.000%
due 05/15/2005 to 11/15/2026,
U.S. Treasury Notes
5.625% to 8.750%
due 10/31/1997 to 02/15/2006. ....................................................... $ 42,000,000 $ 42,000,000
--------------
Total Repurchase Agreements
(Cost $117,419,890).................................................................. 117,419,890
--------------
Total Investments (101.3%)
(Cost $1,516,952,421).................................................................... 1,605,235,499
Receivables less liabilities (-1.3%)...................................................... (19,951,285)
--------------
Net Assets (100.0%)....................................................................... $1,585,284,214
--------------
--------------
</TABLE>
(1) See Note 1 of Notes to Financial Statements.
* Non-income producing.
The accompanying notes are an integral part
of the financial statements.
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- ------------------------ ------------------------
-- COLUMBIA SMALL CAP FUND, INC. --
-----------------------------------
<TABLE>
<CAPTION>
Shares or
Principal
December 31, 1996 Amount Value(1)
------------- --------------
<S> <C> <C>
Common Stocks (90.1%)
Aerospace (0.5%)
*Orbital Sciences Corp. .............................................................. 6,300 $ 108,675
--------------
Banking & Finance (6.5%)
ADVANTA Corp. (Class B)............................................................... 4,500 183,937
Bank United Corp. (Class A)........................................................... 4,000 107,000
Bay View Capital Corp. ............................................................... 5,000 211,875
*Credit Acceptance Corp. ............................................................. 4,600 108,100
*Glendale Federal Bank FSB............................................................ 9,000 209,250
*Leasing Solutions, Inc. ............................................................. 4,900 126,175
North Fork Bancorp, Inc. ............................................................. 3,300 117,563
*Oxford Resources Corp. (Class A)..................................................... 7,000 216,125
*Wilshire Financial Services Group, Inc. ............................................. 5,000 81,250
--------------
1,361,275
--------------
Business & Consumer Services (7.2%)
*Billing Information Concepts Corp. .................................................. 5,700 163,875
*CorVel Corp. ........................................................................ 2,000 58,000
Danka Business Systems plc ADR........................................................ 8,100 286,537
*Guest Supply, Inc. .................................................................. 5,300 93,412
Harland (John H.) Co. ................................................................ 3,900 128,700
+*Metzler Group, Inc. ................................................................ 10,000 317,500
*Protection One, Inc. ................................................................ 6,000 59,250
*Superior Consultant Holdings Corp. .................................................. 10,000 247,500
*U.S. Office Products Co. ............................................................ 3,500 119,438
*Walsh International, Inc. ........................................................... 5,300 46,375
--------------
1,520,587
--------------
Chemical (1.1%)
*TETRA Technologies, Inc. ............................................................ 9,000 227,250
--------------
Consumer Non-Durable (10.0%)
*American Pad & Paper Co. ............................................................ 4,200 95,025
*Bed, Bath & Beyond, Inc. ............................................................ 6,500 157,625
*Borders Group, Inc. ................................................................. 3,500 125,562
*Boston Chicken, Inc. ................................................................ 3,500 125,562
CKE Restaurants, Inc. ................................................................ 6,600 237,600
*Cost Plus, Inc. ..................................................................... 9,000 172,125
*Designer Holdings Ltd. .............................................................. 10,000 161,250
Harman International Industries, Inc. ................................................ 1,900 105,688
*HSN, Inc. ........................................................................... 1,260 29,925
K2, Inc. ............................................................................. 8,200 225,500
Pier 1 Imports, Inc. ................................................................. 18,000 317,250
+*PJ America, Inc. ................................................................... 10,000 180,000
*Sports & Recreation, Inc. ........................................................... 3,200 24,800
*Williams-Sonoma, Inc. ............................................................... 3,800 138,225
--------------
2,096,137
--------------
<CAPTION>
Shares or
Principal
Amount Value(1)
------------- --------------
<S> <C> <C>
<S> <C> <C>
Consumer Staples (0.5%)
*Mondavi (Robert) Corp. (Class A)..................................................... 3,000 $ 109,500
--------------
Energy (6.2%)
*Abacan Resource Corp. ............................................................... 20,000 173,750
*Barrett Resources Corp. ............................................................. 3,500 149,187
*Cairn Energy USA, Inc. .............................................................. 19,500 195,000
Enron Global Power & Pipelines L.L.C.................................................. 6,000 162,000
*Flores & Rucks, Inc. ................................................................ 1,700 90,525
*Gulf Canada Resources Ltd. .......................................................... 31,100 229,363
*Monterey Resources, Inc. ............................................................ 16,000 258,000
*Swift Energy Co. .................................................................... 1,800 53,775
--------------
1,311,600
--------------
Energy Services (8.7%)
*BJ Services Co. ..................................................................... 3,000 153,000
+*Dreco Energy Services Ltd. (Class A)................................................ 6,000 219,750
+*National-Oilwell, Inc. ............................................................. 9,000 276,750
*Petroleum Geo-Services ASA ADR....................................................... 3,000 117,000
Petrolite Corp. ...................................................................... 2,400 115,200
*Pinnacle Resources Ltd. ............................................................. 10,000 156,831
*Precision Drilling Corp. ............................................................ 10,000 347,500
*Pride Petroleum Services, Inc. ...................................................... 15,000 348,750
*Veritas DGC, Inc. ................................................................... 5,000 92,500
--------------
1,827,281
--------------
Entertainment & Media (0.7%)
*Golden Books Family Entertainment, Inc. ............................................. 2,600 28,925
*United International Holdings, Inc. (Class A)........................................ 3,700 45,325
*WMS Industries, Inc. ................................................................ 3,900 78,000
--------------
152,250
--------------
Health (12.7%)
*Agouron Pharmaceuticals, Inc. ....................................................... 2,000 135,500
*Allergan Ligand Retinoid Therapeutics, Inc. ......................................... 4,000 121,000
*Assisted Living Concepts, Inc. ...................................................... 4,900 74,725
*Axogen Ltd. - Units (each unit consists of 1 common share of Axogen and 1 warrant of
Elan)................................................................................ 4,500 105,750
*CardioThoracic Systems, Inc. ........................................................ 10,000 185,000
*Conceptus, Inc. ..................................................................... 5,200 53,300
*Dura Pharmaceuticals, Inc. .......................................................... 7,400 353,350
*Elan Corp. plc ADR................................................................... 5,100 169,575
*Health Management Associates, Inc. (Class A)......................................... 4,600 103,500
*HealthCare COMPARE Corp. ............................................................ 2,300 97,462
*ICOS Corp. .......................................................................... 5,500 41,938
*Ligand Pharmaceuticals, Inc. (Class B)............................................... 6,000 89,250
*NABI, Inc. .......................................................................... 12,300 107,625
</TABLE>
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- ------------------------ ------------------------
-- COLUMBIA SMALL CAP FUND, INC. --
-----------------------------------
<TABLE>
<CAPTION>
Shares or
Principal
Amount Value(1)
------------- --------------
<S> <C> <C>
</TABLE>
Common Stocks (Continued)
<TABLE>
<S> <C> <C>
*OccuSystems, Inc. ................................................................... 6,000 $ 162,000
*Protein Design Labs, Inc. ........................................................... 3,500 127,750
*Scherer (R.P.) Corp. ................................................................ 2,300 115,575
*Target Therapeutics, Inc. ........................................................... 6,000 252,000
*Texas Biotechnology Corp. ........................................................... 30,000 131,250
*Thermedics, Inc. .................................................................... 10,400 188,500
*Thermotrex Corp. .................................................................... 1,300 35,588
*UroMed Corp. ........................................................................ 3,100 30,225
--------------
2,680,863
--------------
Hotels & Gaming (0.5%)
*CapStar Hotel Co. ................................................................... 5,000 98,125
--------------
Insurance (1.2%)
PennCorp Financial Group, Inc. ....................................................... 3,300 118,800
Protective Life Corp. ................................................................ 3,300 131,588
--------------
250,388
--------------
Machinery & Capital Spending (0.8%)
*Cuno, Inc. .......................................................................... 6,500 96,688
*J. Ray McDermott, S.A. .............................................................. 3,300 72,600
--------------
169,288
--------------
Metal Mining & Steel (0.4%)
*Getchell Gold Corp. ................................................................. 2,000 76,750
--------------
Pollution Control (3.1%)
*U.S. Filter Corp. ................................................................... 6,000 190,500
*United Waste Systems, Inc. .......................................................... 7,000 240,625
*USA Waste Services, Inc. ............................................................ 6,800 216,750
--------------
647,875
--------------
Technology (26.7%)
*Actel Corp. ......................................................................... 5,100 121,125
+*Altera Corp. ....................................................................... 1,900 138,106
*American Management Systems, Inc. ................................................... 4,500 110,250
+*American Power Conversion Corp. .................................................... 7,300 198,925
+*ANADIGICS, Inc. .................................................................... 10,000 392,500
*AXENT Technologies, Inc. ............................................................ 11,000 165,000
*BA Merchant Services, Inc. (Class A)................................................. 20,000 357,500
*Boston Technology, Inc. ............................................................. 3,200 92,000
*Cognos, Inc. ........................................................................ 2,700 75,937
*Coherent Communications Systems Corp. ............................................... 4,200 81,900
*Computer Products, Inc. ............................................................. 5,900 115,050
*Control Data Systems, Inc. .......................................................... 3,000 66,000
*DSP Communications, Inc. ............................................................ 12,000 232,500
<CAPTION>
Shares or
Principal
Amount Value(1)
------------- --------------
<S> <C> <C>
<S> <C> <C>
*DST Systems, Inc. ................................................................... 4,000 $ 125,500
*Eltron International, Inc. .......................................................... 2,400 48,300
*Engineering Animation, Inc. ......................................................... 3,600 87,300
*Geoworks............................................................................. 4,400 107,800
*Integrated Systems, Inc. ............................................................ 4,500 117,000
*JDA Software Group, Inc. ............................................................ 6,000 171,000
*MDL Information Systems, Inc. ....................................................... 10,700 199,287
*MICROS Systems, Inc. ................................................................ 9,300 285,975
*Network Appliance, Inc. ............................................................. 7,400 376,475
*P-COM, Inc. ......................................................................... 7,700 228,113
*Proxim, Inc. ........................................................................ 9,000 207,000
*Rogue Wave Software, Inc. ........................................................... 4,000 63,000
*Saville Systems plc ADR.............................................................. 3,000 121,875
+*Shiva Corp. ........................................................................ 3,000 104,625
*Sierra Semiconductor Corp. .......................................................... 15,000 225,000
*SPSS, Inc. .......................................................................... 2,900 80,838
*Synopsys, Inc. ...................................................................... 1,900 87,875
*S3, Inc. ............................................................................ 15,100 245,375
*Teledata Communication Ltd. ......................................................... 8,000 184,000
*Transition Systems, Inc. ............................................................ 14,000 197,750
*Trident Microsystems, Inc. .......................................................... 13,000 219,375
--------------
5,630,256
--------------
Transportation (0.8%)
Consolidated Freightways, Inc. ....................................................... 3,800 84,550
Werner Enterprises, Inc. ............................................................. 5,200 94,250
--------------
178,800
--------------
Utilities/Communications (1.1%)
*Anicom, Inc. ........................................................................ 7,400 68,450
*Geotek Communications, Inc. ......................................................... 12,800 91,200
*Paging Network, Inc. ................................................................ 5,000 76,250
--------------
235,900
--------------
Utilities/Electric/Gas (1.4%)
*AES China Generating Co. (Class A)................................................... 15,000 191,250
*AES Corp. ........................................................................... 2,300 106,950
--------------
298,200
--------------
Total Common Stocks
(Cost $17,505,792) .................................................................. 18,981,000
--------------
Convertible Preferred Stock (0.2%)
Energy (0.2%)
Mesa, Inc. Series A 8.000% Cumulative
(Cost $25,926) ...................................................................... 4,692 29,912
--------------
</TABLE>
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[LOGO]
- ------------------------ ------------------------
-- COLUMBIA SMALL CAP FUND, INC. --
-----------------------------------
<TABLE>
<CAPTION>
Shares or
Principal
Amount Value(1)
------------- --------------
<S> <C> <C>
<S> <C> <C>
Convertible Bond (0.9%)
Pollution Control (0.9%)
U.S. Filter Corp. 4.500% 12/15/2001
(Cost $190,000) ..................................................................... $ 190,000 $ 193,800
--------------
Total investments, excluding temporary cash investments
(Cost $17,721,718) .................................................................. 19,204,712
--------------
Repurchase Agreements (12.1%)
Goldman Sachs Corp.
6.354% dated 12/31/1996,
due 01/02/1997 in the
amount of $1,103,567.
Collateralized by U.S. Treasury Bond
6.500% due 11/15/2026. .............................................................. 1,103,184 1,103,184
J.P. Morgan Securities, Inc.
6.789% dated 12/31/1996,
due 01/02/1997 in the
amount of $1,000,371.
Collateralized by U.S. Treasury Bonds
6.000% to 14.000%
due 05/15/2005 to 11/15/2026,
U.S. Treasury Notes
5.625% to 8.750%
due 10/31/1997 to 02/15/2006. ....................................................... 1,000,000 1,000,000
<CAPTION>
Shares or
Principal
Amount Value(1)
------------- --------------
<S> <C> <C>
<S> <C> <C>
Merrill Lynch
6.354% dated 12/31/1996
due 01/02/1997 in the
amount of $450,156.
Collateralized by U.S. Treasury Strips
due 05/15/2018 to 02/15/2022. ....................................................... $ 450,000 $ 450,000
--------------
Total Repurchase Agreements
(Cost $2,553,184).................................................................... 2,553,184
--------------
Total Investments (103.3%)
(Cost $20,274,902)....................................................................... 21,757,896
Receivables less liabilities (-3.3%)...................................................... (696,526)
--------------
Net Assets (100.0%)....................................................................... $ 21,061,370
--------------
--------------
</TABLE>
(1) See Note 1 of Notes to Financial Statements.
* Non-income producing.
+ All or a portion of these investments are hedged by short sales against the
box (Note 1).
The accompanying notes are an integral part
of the financial statements.
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- ------------------- -------------------
-- COLUMBIA REAL ESTATE EQUITY FUND, INC. --
--------------------------------------------
<TABLE>
<CAPTION>
Shares or
Principal
December 31, 1996 Amount Value(1)
------------- --------------
<S> <C> <C>
Common Stocks (82.5%)
Real Estate
Apartments (19.5%)
Associated Estates Realty Corp. ...................................................... 87,600 $ 2,080,500
Camden Property Trust................................................................. 70,700 2,023,788
Colonial Properties Trust............................................................. 72,600 2,205,225
Equity Residential Properties Trust................................................... 41,300 1,703,625
Oasis Residential, Inc. .............................................................. 74,900 1,703,975
Security Capital Pacific Trust........................................................ 82,600 1,889,475
Wellsford Residential Property Trust.................................................. 70,025 1,698,106
--------------
13,304,694
--------------
Office (16.2%)
Arden Realty Group, Inc. ............................................................. 67,000 1,859,250
Beacon Properties Corp. .............................................................. 63,300 2,318,362
Cali Realty Corp. .................................................................... 69,700 2,151,988
Highwoods Properties, Inc. ........................................................... 74,800 2,524,500
Reckson Associates Realty Corp. ...................................................... 50,900 2,150,525
--------------
11,004,625
--------------
Industrial (20.6%)
First Industrial Realty Trust, Inc. .................................................. 68,800 2,089,800
Liberty Property Trust................................................................ 83,400 2,147,550
Public Storage, Inc. ................................................................. 75,800 2,349,800
Security Capital Industrial Trust..................................................... 89,300 1,908,787
Shurgard Storage Centers, Inc. (Class A).............................................. 71,300 2,112,263
Storage Trust Realty.................................................................. 50,500 1,363,500
TriNet Corporate Realty Trust, Inc. .................................................. 58,500 2,076,750
--------------
14,048,450
--------------
Community Centers (6.8%)
Excel Realty Trust, Inc. ............................................................. 83,400 2,116,275
Haagen (Alexander) Properties, Inc. .................................................. 44,600 657,850
JP Realty, Inc. ...................................................................... 71,900 1,860,412
--------------
4,634,537
--------------
Shopping Malls (9.8%)
Macerich Co. ......................................................................... 82,100 2,144,863
Rouse Co. ............................................................................ 72,600 2,305,050
Simon Debartolo Group, Inc. .......................................................... 71,256 2,208,936
--------------
6,658,849
--------------
Lodging (6.4%)
*Interstate Hotels Co. ............................................................... 49,000 1,384,250
Patriot American Hospitality, Inc. ................................................... 34,600 1,492,125
<CAPTION>
Shares or
Principal
Amount Value(1)
------------- --------------
<S> <C> <C>
<S> <C> <C>
Starwood Lodging Trust................................................................ 26,400 $ 1,455,300
--------------
4,331,675
--------------
Other (3.2%)
*Catellus Development Corp. .......................................................... 190,600 2,168,075
--------------
Total Common Stocks
(Cost $45,246,073) .................................................................. 56,150,905
--------------
Repurchase Agreements (17.7%)
Goldman Sachs Corp.
6.354% dated 12/31/1996,
due 01/02/1997 in the
amount of $5,534,112.
Collateralized by U.S. Treasury Bond
6.500% due 11/15/2026. .............................................................. $ 5,532,191 5,532,191
J.P. Morgan Securities, Inc.
6.789% dated 12/31/1996,
due 01/02/1997 in the
amount of $3,251,206.
Collateralized by U.S. Treasury Bonds
6.000% to 14.000%
due 05/15/2005 to 11/15/2026,
U.S. Treasury Notes
5.625% to 8.750%
due 10/31/1997 to 02/15/2006. ....................................................... 3,250,000 3,250,000
Merrill Lynch
6.354% dated 12/31/1996,
due 01/02/1997 in the
amount of $3,251,128.
Collateralized by U.S. Treasury Strips
due 05/15/2018 to 02/15/2022. ....................................................... 3,250,000 3,250,000
--------------
Total Repurchase Agreements
(Cost $12,032,191) .................................................................. 12,032,191
--------------
Total Investments (100.2%)
(Cost $57,278,264)....................................................................... 68,183,096
Receivables less liabilities (-0.2%)...................................................... (109,875)
--------------
Net Assets (100.0%)....................................................................... $ 68,073,221
--------------
--------------
</TABLE>
(1) See Note 1 of Notes to Financial Statements.
* Non-income producing.
The accompanying notes are an integral part
of the financial statements.
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- ------------------------ ------------------------
-- COLUMBIA BALANCED FUND, INC. --
----------------------------------
<TABLE>
<CAPTION>
Shares or
Principal
December 31, 1996 Amount Value(1)
------------- --------------
<S> <C> <C>
Common Stocks (48.3%)
Banking & Finance (6.1%)
American Express Co. ................................................................. 100,200 $ 5,661,300
BankAmerica Corp. .................................................................... 49,900 4,977,525
Federal Home Loan Mortgage Corp. ..................................................... 62,000 6,827,750
Great Western Financial Corp. ........................................................ 153,300 4,445,700
Morgan (J.P.) & Co., Inc. ............................................................ 68,200 6,658,025
NationsBank Corp. .................................................................... 17,100 1,671,525
PNC Bank Corp. ....................................................................... 143,700 5,406,712
U.S. Bancorp.......................................................................... 119,000 5,347,563
--------------
40,996,100
--------------
Building & Forestry Products (1.8%)
Champion International Corp. ......................................................... 115,000 4,973,750
Weyerhaeuser Co. ..................................................................... 70,000 3,316,250
Willamette Industries, Inc. .......................................................... 53,000 3,690,125
--------------
11,980,125
--------------
Business & Consumer Services (2.3%)
*ADT Ltd. ............................................................................ 211,400 4,835,775
Electronic Data Systems Corp. ........................................................ 100,000 4,325,000
Service Corp. Int'l. ................................................................. 223,300 6,252,400
--------------
15,413,175
--------------
Chemical (2.3%)
Grace (W.R.) & Co. ................................................................... 68,200 3,529,350
Hercules, Inc. ....................................................................... 119,100 5,151,075
IMC Global, Inc. ..................................................................... 82,100 3,212,162
Monsanto Co. ......................................................................... 84,300 3,277,163
--------------
15,169,750
--------------
Consumer Durable (0.9%)
Ford Motor Co. ....................................................................... 83,200 2,652,000
General Motors Corp. ................................................................. 66,000 3,679,500
--------------
6,331,500
--------------
Consumer Non-Durable (5.2%)
*Circus Circus Enterprises, Inc. ..................................................... 67,600 2,323,750
*Federated Department Stores, Inc. ................................................... 96,900 3,306,712
Marriott International, Inc. ......................................................... 69,700 3,850,925
Mattel, Inc. ......................................................................... 225,350 6,253,462
*Meyer (Fred), Inc. .................................................................. 80,000 2,840,000
Penney (J.C.), Inc. .................................................................. 63,400 3,090,750
*Price/Costco, Inc. .................................................................. 200,000 5,025,000
Rite Aid Corp. ....................................................................... 90,000 3,577,500
Rykoff-Sexton, Inc. .................................................................. 81,000 1,285,875
<CAPTION>
Shares or
Principal
Amount Value(1)
------------- --------------
<S> <C> <C>
<S> <C> <C>
Sears, Roebuck & Co. ................................................................. 76,900 $ 3,547,013
--------------
35,100,987
--------------
Consumer Staples (3.7%)
Gillette Co. ......................................................................... 49,000 3,809,750
McDonald's Corp. ..................................................................... 103,800 4,696,950
Nabisco Holdings Corp. (Class A)...................................................... 96,900 3,766,987
PepsiCo, Inc. ........................................................................ 201,000 5,879,250
Procter & Gamble Co. ................................................................. 32,300 3,472,250
Sunbeam Corp. ........................................................................ 119,600 3,079,700
--------------
24,704,887
--------------
Energy (3.8%)
Amoco Corp. .......................................................................... 84,800 6,826,400
Louisiana Land & Exploration Co. ..................................................... 54,000 2,895,750
Mobil Corp. .......................................................................... 54,700 6,687,075
Royal Dutch Petroleum Co. ADR......................................................... 43,450 7,419,087
Union Pacific Resources Group, Inc. .................................................. 59,800 1,749,150
--------------
25,577,462
--------------
Entertainment & Media (1.8%)
Gannett Co., Inc. .................................................................... 45,000 3,369,375
Time Warner, Inc. .................................................................... 128,800 4,830,000
*Viacom, Inc. (Class B)............................................................... 106,600 3,717,675
--------------
11,917,050
--------------
Health (5.5%)
American Home Products Corp. ......................................................... 162,600 9,532,425
Bausch & Lomb, Inc. .................................................................. 99,600 3,486,000
Baxter International, Inc. ........................................................... 84,400 3,460,400
Johnson & Johnson..................................................................... 116,000 5,771,000
Merck & Co., Inc. .................................................................... 45,700 3,621,725
Pfizer, Inc. ......................................................................... 40,000 3,315,000
Pharmacia & Upjohn, Inc. ............................................................. 111,800 4,430,075
Warner-Lambert Co. ................................................................... 47,500 3,562,500
--------------
37,179,125
--------------
Insurance (2.2%)
Berkley (W.R.) Corp. ................................................................. 71,000 3,603,250
General Re Corp. ..................................................................... 20,400 3,218,100
NAC Re Corp. ......................................................................... 39,400 1,334,675
TIG Holdings, Inc. ................................................................... 204,800 6,937,600
--------------
15,093,625
--------------
Machinery & Capital Spending (3.6%)
Case Corp. ........................................................................... 58,000 3,161,000
Caterpillar, Inc. .................................................................... 17,000 1,279,250
Deere & Co. .......................................................................... 111,300 4,521,563
</TABLE>
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<TABLE>
<CAPTION>
Shares or
Principal
Amount Value(1)
------------- --------------
<S> <C> <C>
</TABLE>
Common Stocks (Continued)
<TABLE>
<S> <C> <C>
Emerson Electric Co. ................................................................. 52,800 $ 5,108,400
General Electric Co. ................................................................. 68,000 6,723,500
Honeywell, Inc. ...................................................................... 55,100 3,622,825
--------------
24,416,538
--------------
Metal Mining & Steel (1.2%)
Aluminum Company of America........................................................... 86,400 5,508,000
Worthington Industries, Inc. ......................................................... 123,000 2,229,375
--------------
7,737,375
--------------
Real Estate Securities (2.9%)
American Health Properties, Inc. ..................................................... 73,600 1,757,200
Associated Estates Realty Corp. ...................................................... 76,200 1,809,750
Beacon Properties Corp. .............................................................. 45,000 1,648,125
Equity Residential Properties Trust................................................... 48,500 2,000,625
JP Realty, Inc. ...................................................................... 97,500 2,522,813
Manufactured Home Communities, Inc. .................................................. 78,000 1,813,500
National Health Investors, Inc. ...................................................... 72,000 2,727,000
Simon Debartolo Group, Inc. .......................................................... 52,500 1,627,500
Spieker Properties, Inc. ............................................................. 53,000 1,908,000
Sun Communities, Inc. ................................................................ 54,700 1,887,150
--------------
19,701,663
--------------
Technology (4.1%)
Adobe Systems, Inc. .................................................................. 155,000 5,793,125
Ericsson (L.M.) Telephone Co. (Class B) ADR........................................... 135,900 4,102,481
Hewlett-Packard Co. .................................................................. 76,000 3,819,000
Intel Corp. .......................................................................... 36,700 4,805,406
International Business Machines Corp. ................................................ 23,900 3,608,900
Motorola, Inc. ....................................................................... 91,300 5,603,538
--------------
27,732,450
--------------
Utilities/Communications (0.4%)
Frontier Corp. ....................................................................... 122,100 2,762,513
--------------
Utilities/Electric/Gas (0.5%)
Idaho Power Co. ...................................................................... 99,300 3,090,713
--------------
Total Common Stocks
(Cost $270,169,730) ................................................................. 324,905,038
--------------
U.S. Government, Federal Agency Obligations (31.6%)
U.S. Treasury Bonds And Notes (13.6%)
U.S. Treasury Bonds
12.000% 05/15/2005................................................................... $ 3,430,000 4,662,193
12.000% 08/15/2013................................................................... 9,385,000 13,432,469
8.875% 08/15/2017................................................................... 1,925,000 2,381,591
8.125% 08/15/2019................................................................... 13,580,000 15,728,356
<CAPTION>
Shares or
Principal
Amount Value(1)
------------- --------------
<S> <C> <C>
<S> <C> <C>
U.S. Treasury Notes
8.750% 10/15/1997................................................................... $ 16,255,000 $ 16,657,636
5.750% 10/31/1997................................................................... 13,190,000 13,208,598
8.875% 02/15/1999................................................................... 6,210,000 6,569,000
6.875% 08/31/1999................................................................... 18,565,000 18,950,781
--------------
91,590,624
--------------
Government National Mortgage Association (GNMA) (4.3%)
8.000% 08/20/2026 - 12/20/2026 (GNMA II)............................................ 26,895,216 27,319,622
8.000% 09/15/2025 - 10/15/2025...................................................... 1,227,515 1,252,262
--------------
28,571,884
--------------
Federal Housing Administration (FHA) (0.8%)
FHA Insured Project Pool #23-11059
7.700% 08/01/2028................................................................... 1,620,497 1,617,807
FHA Insured Project Pool #53
7.430% 02/01/2022................................................................... 924,614 944,262
FHA Insured Project Pool #55
7.430% 04/01/2022................................................................... 1,929,472 1,904,447
FHA Insured Project Pool #53-43077
9.125% 07/25/2033................................................................... 1,102,400 1,172,072
--------------
5,638,588
--------------
Federal Home Loan Mortgage Corporation (FHLMC) (1.5%)
7.500% 07/01/2011 - 11/01/2011...................................................... 8,593,663 8,717,240
8.500% 10/01/2024 - 03/01/2025...................................................... 1,334,032 1,383,645
--------------
10,100,885
--------------
Agency Collateralized Mortgage Obligations (11.4%)
FHLMC Multiclass Mtg. Partn. Ctfs. Gtd. Series 1203 Cl. F
6.750% 07/15/2003................................................................... 54,493 54,390
FHLMC Multiclass Mtg. Partn. Ctfs. Gtd. Series 1233 Cl. H
7.000% 04/15/2007................................................................... 600,000 602,058
FHLMC Multiclass Mtg. Partn. Ctfs. Gtd. Series 1627 Cl. E
6.000% 02/15/2023................................................................... 2,256,000 1,939,100
FHLMC Multiclass Mtg. Partn. Ctfs. Gtd. Series 1627 Cl. EA
6.000% 05/15/2023................................................................... 1,817,000 1,527,970
FHLMC Multiclass Mtg. Partn. Ctfs. Gtd. Series 1632 Cl. B
6.000% 11/15/2023................................................................... 1,780,000 1,620,921
FHLMC Multiclass Mtg. Partn. Ctfs. Gtd. Series 1763 Cl. H
8.250% 07/15/2023................................................................... 130,000 136,255
</TABLE>
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<TABLE>
<CAPTION>
Shares or
Principal
Amount Value(1)
------------- --------------
<S> <C> <C>
</TABLE>
U.S. Government, Federal Agency Obligations (Continued)
<TABLE>
<S> <C> <C>
FHLMC Multiclass Mtg. Partn. Ctfs. Gtd. Series 1795 Cl. A
7.000% 11/15/2022................................................................... $ 8,541,223 $ 8,541,223
FHLMC Multiclass Mtg. Partn. Ctfs. Gtd. Series 1895 Cl. B
7.500% 12/15/2023................................................................... 2,360,000 2,345,981
FHLMC Multiclass Mtg. Partn. Ctfs. Gtd. Series 1890 Cl. K
7.000% 03/15/2022................................................................... 4,380,000 4,309,526
FHLMC Multiclass Mtg. Partn. Ctfs. Gtd. Series 1902 Cl. B
7.000% 11/15/2023................................................................... 2,800,000 2,717,764
FHLMC Multiclass Mtg. Partn. Ctfs. Gtd. Series 1904 Cl. AB
7.000% 07/15/2022................................................................... 3,193,647 3,194,637
FHLMC Multiclass Mtg. Partn. Ctfs. Gtd. Series 1904 Cl. B
7.000% 07/15/2022................................................................... 1,520,000 1,495,300
FHLMC Multiclass Mtg. Partn. Ctfs. Gtd. Series 1904 Cl. C
7.250% 08/15/2024................................................................... 3,490,000 3,416,919
FNMA Gtd. REMIC Pass Thru Ctf. REMIC Tr. 1993-235 Cl. C
0.000% 10/25/1997................................................................... 1,013,549 986,943
FNMA Gtd. REMIC Pass Thru Ctf. REMIC Tr. 1996-G1 Cl. PG
7.500% 06/17/2022................................................................... 3,580,000 3,656,075
FNMA Gtd. REMIC Pass Thru Ctf. REMIC Tr. 1996-G1 Cl. PJ
7.500% 11/17/2025................................................................... 480,000 486,077
FNMA Gtd. REMIC Pass Thru Ctf. REMIC Tr. 1996-G1 Cl. PK
7.500% 06/17/2026................................................................... 706,000 712,290
FNMA Gtd. REMIC Pass Thru Ctf. REMIC Tr. 1996-G3 Cl. C
7.500% 03/20/2024................................................................... 2,070,000 2,058,367
FNMA Gtd. REMIC Pass Thru Ctf. REMIC Tr. 1996-W2 Cl. A5
7.550% 06/25/2026................................................................... 945,000 963,749
FNMA Gtd. REMIC Pass Thru Ctf. REMIC Tr. 1996-W3 Cl. A6
7.800% 08/25/2026................................................................... 760,000 776,804
FNMA Gtd. REMIC Pass Thru Ctf. REMIC Tr. 1996-28 Cl. AB
7.000% 09/25/2023................................................................... 1,070,000 1,024,525
<CAPTION>
Shares or
Principal
Amount Value(1)
------------- --------------
<S> <C> <C>
<S> <C> <C>
FNMA Gtd. REMIC Pass Thru Ctf. REMIC Tr. 1996-31 Cl. E
7.500% 10/25/2025................................................................... $ 5,900,000 $ 6,014,460
FNMA Gtd. REMIC Pass Thru Ctf. REMIC Tr. 1996-46 Cl. G
7.500% 06/25/2024................................................................... 6,580,000 6,549,140
FNMA Gtd. REMIC Pass Thru Ctf. REMIC Tr. 1996-48 Cl. B
7.500% 12/25/2024................................................................... 7,060,000 7,114,080
FNMA Gtd. REMIC Pass Thru Ctf. REMIC Tr. 1996-51 Cl. J
7.000% 05/18/2024................................................................... 9,158,397 9,165,541
GNMA Gtd. REMIC Pass Thru Ctf. REMIC Tr. 1996-5 Cl. DB
7.000% 11/16/2020................................................................... 4,700,000 4,591,289
Puerto Rico Housing Finance Corp. Series A Cl. 4
9.000% 07/20/2017................................................................... 577,476 577,476
--------------
76,578,860
--------------
Total U.S. Government,
Federal Agency Obligations
(Cost $211,382,824) ................................................................. 212,480,841
--------------
Other Securitized Loans (3.4%)
Collateralized Mortgage Obligations (2.6%)
Bear Stearns Mortgage Securities, Inc.
Series 1996-2 Cl. A1
6.910% 01/25/2025................................................................... 955,908 921,256
Bear Stearns Mortgage Securities, Inc.
Series 1996-8 Cl. A9
7.600% 11/25/2027................................................................... 4,337,000 4,311,238
Residential Asset Securitization Trust
Series 1996-A7 Cl. A3
9.500% 10/25/2026................................................................... 2,251,697 2,332,623
Residential Accredit Loans, Inc.
Series 1996-QS4 Cl. AI6
8.000% 08/25/2026................................................................... 1,780,000 1,807,252
Residential Accredit Loans, Inc.
Series 1996-QS4 Cl. AI7
8.000% 08/25/2026................................................................... 4,033,000 4,094,140
Residential Accredit Loans, Inc.
Series 1996-QS7 Cl. AI9
8.000% 11/25/2026................................................................... 1,708,000 1,734,696
</TABLE>
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<TABLE>
<CAPTION>
Shares or
Principal
Amount Value(1)
------------- --------------
<S> <C> <C>
</TABLE>
Other Securitized Loans (Continued)
<TABLE>
<S> <C> <C>
Structured Asset Securities Corp.
Series 1996-6 Cl. 1A2
7.500% 08/25/2026................................................................... $ 2,567,000 $ 2,528,495
--------------
17,729,700
--------------
Asset Backed Securities (0.8%)
Prudential Securities Financial Asset Funding Corp. Mtg. Pass Thru Ctf. 1994-2 Cl. A
6.350% 11/15/2014................................................................... 4,152,874 4,058,147
Prudential Securities Secured Financing Corp. Mtg. Pass Thru Ctf.
Series 1996-1 Cl. A3
7.175% 08/15/2026................................................................... 929,385 933,158
--------------
4,991,305
--------------
Total Other Securitized Loans
(Cost $22,550,694) .................................................................. 22,721,005
--------------
Corporate Bonds (10.8%)
Industrial (4.7%)
Emerson Electric Co. Euro
7.875% 06/05/1998................................................................... 380,000 389,375
Ethan Allen, Inc.
8.750% 03/15/2001................................................................... 1,800,000 1,865,250
Federated Department Stores, Inc.
10.000% 02/15/2001................................................................... 1,000,000 1,086,230
Freeport-McMoRan Resource Partners L.P.
8.750% 02/15/2004................................................................... 900,000 933,750
Lenfest Communications, Inc.
8.375% 11/01/2005................................................................... 1,400,000 1,352,750
Lockheed Martin Corp.
6.625% 06/15/1998................................................................... 5,000,000 5,038,550
Louis Dreyfus Natural Gas Corp.
9.250% 06/15/2004................................................................... 600,000 639,390
Nabisco, Inc.
6.700% 06/15/2002................................................................... 2,000,000 1,980,120
News America Holdings, Inc.
7.600% 10/11/2015................................................................... 3,900,000 3,722,472
7.430% 10/01/2026................................................................... 1,630,000 1,646,333
Norfolk Southern Corp.
Medium Term Note
7.400% 09/15/2006................................................................... 4,200,000 4,265,394
Royal Caribbean Cruises Ltd.
11.375% 05/15/2002................................................................... 1,300,000 1,384,500
<CAPTION>
Shares or
Principal
Amount Value(1)
------------- --------------
<S> <C> <C>
<S> <C> <C>
Sears, Roebuck Acceptance Corp.
Medium Term Notes
6.510% 02/03/1999................................................................... $ 2,450,000 $ 2,463,058
Stop & Shop Cos., Inc.
9.750% 02/01/2002................................................................... 215,000 240,800
Temple Inland, Inc. Medium Term Note
9.000% 04/20/1998................................................................... 200,000 207,564
Time Warner Entertainment Co. L.P.
9.625% 05/01/2002................................................................... 1,900,000 2,119,697
8.375% 03/15/2023................................................................... 1,320,000 1,338,308
Viacom, Inc.
8.000% 07/07/2006................................................................... 1,100,000 1,064,250
--------------
31,737,791
--------------
Financial (5.0%)
Aetna Services, Inc.
7.625% 08/15/2026................................................................... 3,500,000 3,529,190
Associates Corp. N.A.
6.750% 10/15/1999................................................................... 450,000 455,125
Bankers Trust NY Corp.
6.750% 10/03/2001................................................................... 2,325,000 2,336,299
Beneficial Corp. Medium Term Note
8.170% 11/09/1999................................................................... 4,120,000 4,307,831
CP Limited Partnership
8.750% 03/02/2000................................................................... 1,450,000 1,517,671
California Hotel Finance Corp.
11.000% 12/01/2002................................................................... 650,000 679,250
Commercial Credit Group, Inc.
6.625% 06/01/2015................................................................... 1,250,000 1,256,862
ERP Operating Limited Partnership (144A)
8.500% 05/15/1999................................................................... 2,700,000 2,796,093
First Security Corp. (Del.)
7.875% 10/15/1999................................................................... 1,325,000 1,370,236
Fleet Mortgage Group, Inc.
6.500% 09/15/1999................................................................... 550,000 551,485
General Electric Capital Corp.
Medium Term Note
7.875% 11/15/1997................................................................... 1,500,000 1,527,645
Goldman Sachs Group L.P. (144A)
6.750% 02/15/2006................................................................... 2,525,000 2,464,451
Morgan Stanley Group, Inc.
Medium Term Note
5.750% 02/15/2001................................................................... 2,100,000 2,035,278
Spieker Properties L.P.
6.900% 01/15/2004................................................................... 2,450,000 2,416,460
</TABLE>
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<TABLE>
<CAPTION>
Shares or
Principal
Amount Value(1)
------------- --------------
<S> <C> <C>
</TABLE>
Corporate Bonds (Continued)
<TABLE>
<S> <C> <C>
United Dominion Realty Trust
Series A Medium Term Note
7.020% 11/15/2005................................................................... $ 5,050,000 $ 4,977,937
Wachovia Bank
Medium Term Note
6.000% 03/15/1999................................................................... 1,425,000 1,421,010
--------------
33,642,823
--------------
Utility (0.5%)
GTE Corp.
8.850% 03/01/1998................................................................... 750,000 773,265
GTE North, Inc.
5.500% 02/15/1999................................................................... 2,905,000 2,866,625
--------------
3,639,890
--------------
Yankee (0.6%)
Hydro-Quebec
8.000% 02/01/2013................................................................... 1,520,000 1,614,651
Manitoba Province
7.750% 02/01/2002................................................................... 700,000 735,049
Ontario Province CDA
6.000% 02/21/2006................................................................... 1,725,000 1,640,906
--------------
3,990,606
--------------
Total Corporate Bonds
(Cost $72,965,378) .................................................................. 73,011,110
--------------
Total investments, excluding temporary
cash investments
(Cost $577,068,626) ................................................................. 633,117,994
--------------
<CAPTION>
Shares or
Principal
Amount Value(1)
------------- --------------
<S> <C> <C>
<S> <C> <C>
Repurchase Agreements (5.5%)
Goldman Sachs Corp.
6.354% dated 12/31/1996,
due 01/02/1997 in the
amount of $32,739,073.
Collateralized by U.S. Treasury Bond
6.500% due 11/15/2026. .............................................................. $ 32,727,709 $ 32,727,709
J.P. Morgan Securities, Inc.
6.789% dated 12/31/1996,
due 01/02/1997 in the
amount of $4,001,484.
Collateralized by U.S. Treasury Bonds
6.000% to 14.000%
due 05/15/2005 to 11/15/2026,
U.S. Treasury Notes
5.625% to 8.750%
due 10/31/1997 to 02/15/2006. ....................................................... 4,000,000 4,000,000
--------------
Total Repurchase Agreements
(Cost $36,727,709) .................................................................. 36,727,709
--------------
Total Investments (99.6%)
(Cost $613,796,335)...................................................................... 669,845,703
Receivables less liabilities (0.4%)....................................................... 2,747,217
--------------
Net Assets (100.0%)....................................................................... $ 672,592,920
--------------
--------------
</TABLE>
(1) See Note 1 of Notes to Financial Statements.
* Non-income producing
The accompanying notes are an integral part
of the financial statements.
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<TABLE>
<CAPTION>
Principal
December 31, 1996 Amount Value(1)
------------- --------------
<S> <C> <C>
Commercial Paper (99.8%)
A. I. Credit Corp.
5.270% 02/20/1997................................................................... $ 10,000,000 $ 9,925,342
Air Products & Chemicals, Inc.
5.310% 01/21/1997................................................................... 5,000,000 4,984,512
5.280% 02/24/1997................................................................... 9,000,000 8,927,400
5.400% 03/28/1997................................................................... 7,000,000 6,908,650
American Express Credit Corp.
5.320% 01/31/1997................................................................... 5,000,000 4,977,095
5.300% 02/27/1997................................................................... 10,000,000 9,914,611
5.300% 03/13/1997................................................................... 10,000,000 9,894,000
American General Finance Corp.
5.310% 01/23/1997................................................................... 5,000,000 4,983,038
5.280% 02/11/1997................................................................... 10,000,000 9,938,400
Ameritech Capital Funding Corp.
5.300% 02/06/1997................................................................... 11,900,000 11,835,178
Associates Corp. of North America
6.750% 01/02/1997................................................................... 23,000,000 22,991,375
Atlantic Richfield Co.
5.290% 01/17/1997................................................................... 10,000,000 9,975,020
5.320% 01/27/1997................................................................... 15,000,000 14,940,150
Avco Financial Services, Inc.
5.305% 01/31/1997................................................................... 5,000,000 4,977,159
5.300% 02/04/1997................................................................... 10,000,000 9,948,472
5.310% 02/05/1997................................................................... 10,000,000 9,946,900
BP America, Inc.
6.750% 01/02/1997................................................................... 18,000,000 17,993,250
Bank of America, FSB
5.290% 03/07/1997................................................................... 10,000,000 9,903,017
5.370% 03/18/1997................................................................... 10,000,000 9,885,142
Barclays U.S. Funding Corp.
5.600% 01/08/1997................................................................... 10,000,000 9,987,556
5.430% 01/29/1997................................................................... 5,000,000 4,978,129
5.280% 02/11/1997................................................................... 10,000,000 9,938,400
BellSouth Capital Funding Corp.
5.300% 01/22/1997................................................................... 5,000,000 4,983,806
5.300% 02/03/1997................................................................... 10,000,000 9,949,945
Beneficial Corp.
5.310% 01/21/1997................................................................... 5,000,000 4,984,513
5.290% 02/10/1997................................................................... 10,000,000 9,939,753
5.280% 03/06/1997................................................................... 10,000,000 9,904,667
Brown-Forman Corp.
5.440% 01/13/1997................................................................... 10,263,000 10,242,839
5.310% 02/25/1997................................................................... 10,043,000 9,960,045
5.310% 03/03/1997................................................................... 5,000,000 4,954,275
CIT Group Holdings, Inc.
5.600% 01/07/1997................................................................... 15,000,000 14,983,667
5.410% 03/17/1997................................................................... 5,000,000 4,942,895
<CAPTION>
Principal
Amount Value(1)
------------- --------------
<S> <C> <C>
<S> <C> <C>
Cargill Global Funding
5.300% 03/10/1997................................................................... $ 5,000,000 $ 4,949,208
5.300% 03/10/1997................................................................... 5,000,000 4,949,208
5.310% 03/10/1997................................................................... 7,000,000 6,928,758
Chevron Transport Co.
5.300% 02/10/1997................................................................... 5,000,000 4,969,819
5.340% 03/17/1997................................................................... 13,000,000 12,853,447
Clorox Co.
5.320% 02/28/1997................................................................... 5,000,000 4,956,406
5.320% 03/11/1997................................................................... 10,000,000 9,896,556
5.320% 03/14/1997................................................................... 10,000,000 9,892,123
Colgate-Palmolive Co.
5.300% 02/03/1997................................................................... 5,000,000 4,974,972
Deere (John) Capital Corp.
5.300% 02/05/1997................................................................... 5,000,000 4,973,500
5.370% 02/07/1997................................................................... 10,000,000 9,943,317
5.300% 02/26/1997................................................................... 10,000,000 9,916,083
Disney (Walt) Co.
5.290% 01/23/1997................................................................... 5,000,000 4,983,101
5.400% 01/24/1997................................................................... 10,000,000 9,964,000
5.290% 02/03/1997................................................................... 10,000,000 9,950,039
DuPont (E.I.) de Nemours & Co.
5.260% 02/20/1997................................................................... 22,000,000 21,836,064
Ford Motor Credit Co.
5.880% 01/03/1997................................................................... 10,000,000 9,995,100
5.900% 01/03/1997................................................................... 1,052,000 1,051,483
5.550% 01/09/1997................................................................... 5,000,000 4,993,063
5.300% 01/14/1997................................................................... 10,000,000 9,979,389
General Electric Capital Corp.
5.310% 01/21/1997................................................................... 10,000,000 9,969,025
5.310% 02/05/1997................................................................... 5,000,000 4,973,450
5.290% 02/14/1997................................................................... 5,000,000 4,966,938
General Electric Capital Services, Inc.
5.310% 02/10/1997................................................................... 5,000,000 4,969,763
Gillette Co., The
5.280% 03/05/1997................................................................... 5,000,000 4,953,067
Glaxo Wellcome plc
6.050% 01/03/1997................................................................... 5,646,000 5,643,153
5.320% 01/17/1997................................................................... 10,000,000 9,974,878
5.320% 03/07/1997................................................................... 5,000,000 4,951,234
Goldman Sachs Group L.P.
5.420% 02/04/1997................................................................... 5,000,000 4,973,653
5.300% 03/04/1997................................................................... 20,000,000 19,814,500
Heinz, (H.J.) Co.
5.530% 01/10/1997................................................................... 8,400,000 8,387,097
</TABLE>
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-----------------------------------------------------------------
[LOGO]
- ----------------------- -----------------------
-- COLUMBIA DAILY INCOME COMPANY --
-----------------------------------
<TABLE>
<CAPTION>
Principal
Amount Value(1)
------------- --------------
<S> <C> <C>
</TABLE>
Commercial Paper (Continued)
<TABLE>
<S> <C> <C>
Household Finance Corp.
5.310% 01/28/1997................................................................... $ 5,000,000 $ 4,979,350
5.330% 01/30/1997................................................................... 10,000,000 9,955,584
5.300% 02/13/1997................................................................... 10,000,000 9,935,222
Idaho Power Co.
5.500% 01/10/1997................................................................... 2,150,000 2,146,715
Knight-Ridder, Inc.
5.280% 01/15/1997................................................................... 15,000,000 14,967,000
Lincoln National Corp.
5.280% 02/19/1997................................................................... 10,000,000 9,926,667
Lubrizol Corp.
5.650% 01/06/1997................................................................... 1,531,000 1,529,558
Merrill Lynch & Co., Inc.
5.330% 01/23/1997................................................................... 5,000,000 4,982,974
5.330% 01/30/1997................................................................... 5,000,000 4,977,792
5.340% 02/11/1997................................................................... 5,000,000 4,968,850
5.300% 02/12/1997................................................................... 10,000,000 9,936,695
MetLife Funding, Inc.
5.280% 02/18/1997................................................................... 15,000,000 14,892,200
5.270% 02/21/1997................................................................... 10,000,000 9,923,878
Monsanto Co.
5.280% 02/12/1997................................................................... 5,000,000 4,968,467
5.600% 02/19/1997................................................................... 1,500,000 1,488,334
5.380% 03/19/1997................................................................... 8,310,000 8,213,133
Morgan (J.P.) & Co., Inc.
5.300% 03/03/1997................................................................... 20,000,000 19,817,445
5.370% 03/20/1997................................................................... 5,000,000 4,941,079
Morgan Stanley Group, Inc.
5.370% 02/14/1997................................................................... 10,000,000 9,932,875
5.310% 02/19/1997................................................................... 10,000,000 9,926,250
5.340% 03/14/1997................................................................... 5,000,000 4,945,859
National Rural Utilities Cooperative Finance Corp.
5.310% 01/30/1997................................................................... 5,000,000 4,977,875
5.280% 02/04/1997................................................................... 11,900,000 11,838,913
5.290% 02/13/1997................................................................... 2,000,000 1,987,069
Norwest Corp.
5.310% 01/29/1997................................................................... 5,000,000 4,978,613
Norwest Financial, Inc.
5.320% 02/12/1997................................................................... 5,000,000 4,968,228
5.280% 02/25/1997................................................................... 13,000,000 12,893,227
PacifiCorp
5.310% 01/22/1997................................................................... 10,000,000 9,967,550
Pfizer, Inc.
5.300% 03/12/1997................................................................... 10,000,000 9,895,472
<CAPTION>
Principal
Amount Value(1)
------------- --------------
<S> <C> <C>
<S> <C> <C>
Procter & Gamble Co.
5.280% 01/16/1997................................................................... $ 10,000,000 $ 9,976,533
Prudential Funding Corp.
5.620% 01/06/1997................................................................... 10,000,000 9,990,633
5.620% 01/09/1997................................................................... 5,000,000 4,992,975
5.420% 01/22/1997................................................................... 10,000,000 9,966,878
Sara Lee Corp.
6.250% 01/07/1997................................................................... 10,000,000 9,987,847
Siemens Corp.
5.310% 01/23/1997................................................................... 7,000,000 6,976,253
Sonoco Products Co.
5.300% 02/18/1997................................................................... 5,000,000 4,963,931
5.290% 02/21/1997................................................................... 7,000,000 6,946,512
Southern California Gas Co.
5.300% 01/28/1997................................................................... 10,000,000 9,958,778
Southern New England Telecom
5.430% 01/13/1997................................................................... 15,000,000 14,970,588
USAA Capital Corp.
5.300% 01/29/1997................................................................... 5,000,000 4,978,653
Weyerhaeuser Co.
5.280% 01/16/1997................................................................... 3,700,000 3,691,317
5.280% 01/16/1997................................................................... 3,000,000 2,992,960
5.290% 01/16/1997................................................................... 11,000,000 10,974,138
--------------
Total Commercial Paper
(Cost $888,362,465) ................................................................. 888,362,465
--------------
Repurchase Agreement (1.6%)
Goldman Sachs Corp.
6.354% dated 12/31/1996,
due 01/02/1997 in the
amount of $13,701,038.
Collateralized by U.S. Treasury Bond
6.500% due 11/15/2026
(Cost $13,696,282) .................................................................. 13,696,282 13,696,282
--------------
Total Investments (101.4%)
(Cost $902,058,747, including $5,630,973 accrued interest receivable).................... 902,058,747
Cash and receivables less liabilities (-1.4%)............................................. (12,258,778)
--------------
Net Assets (100.0%)....................................................................... $ 889,799,969
--------------
--------------
</TABLE>
(1) See Note 1 of Notes to Financial Statements.
The accompanying notes are an integral part
of the financial statements.
-
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-----------------------------------------------------------------
[LOGO]
- -------------- --------------
-- COLUMBIA U.S. GOVERNMENT SECURITIES FUND, INC. --
----------------------------------------------------
<TABLE>
<CAPTION>
Principal
December 31, 1996 Amount Value(1)
------------- --------------
<S> <C> <C>
U.S. Treasury Notes (99.4%)
5.750% 10/31/1997................................................................... $ 16,500,000 $ 16,523,265
8.875% 02/15/1999................................................................... 2,800,000 2,961,868
6.875% 08/31/1999................................................................... 10,875,000 11,100,983
5.875% 11/15/1999................................................................... 10,000,000 9,960,900
--------------
Total U.S. Treasury Notes
(Cost $40,519,829) .................................................................. 40,547,016
Repurchase Agreement (0.9%)
Goldman Sachs Corp.
6.354% dated 12/31/1996,
due 01/02/1997 in the
amount of $351,192.
Collateralized by U.S. Treasury Bond
6.5000% due 11/15/2026
(Cost $351,070) ..................................................................... 351,070 351,070
--------------
Total Investments (100.3%)
(Cost $40,870,899)....................................................................... 40,898,086
Receivables less liabilities (-0.3%)...................................................... (121,745)
--------------
Net Assets (100.0%)....................................................................... $ 40,776,341
--------------
--------------
</TABLE>
(1) See Note 1 of Notes to Financial Statements.
The accompanying notes are an integral part
of the financial statements.
-
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-----------------------------------------------------------------
[LOGO]
- ---------------- ----------------
-- COLUMBIA FIXED INCOME SECURITIES FUND, INC. --
-------------------------------------------------
<TABLE>
<CAPTION>
Principal
December 31, 1996 Amount Value(1)
------------- --------------
<S> <C> <C>
U.S. Government, Federal Agency Obligations (61.6%)
U.S. Treasury Bonds & Notes (22.9%)
U.S. Treasury Bonds
12.000% 05/15/2005................................................................... $ 2,900,000 $ 3,941,796
12.000% 08/15/2013................................................................... 14,220,000 20,352,659
8.125% 08/15/2019................................................................... 12,830,000 14,859,706
U.S. Treasury Notes
8.750% 10/15/1997................................................................... 21,140,000 21,663,638
5.750% 10/31/1997................................................................... 20,905,000 20,934,476
--------------
81,752,275
--------------
Other Government Agency Obligation (1.5%)
Farm Credit Systems Financial Assistance Corp. Series A
9.375% 07/21/2003................................................................... 4,660,000 5,363,380
--------------
Government National Mortgage Association (GNMA) (8.8%)
8.000% 07/20/2026 - 11/20/2026
(GNMA II).......................................................................... 29,384,675 29,848,365
8.000% 10/15/2025 - 11/15/2026...................................................... 1,314,444 1,340,943
--------------
31,189,308
--------------
Government National Mortgage Association
Graduated Payment Mortgage (GNMA GPM) (0.2%)
9.000% 05/15/2009................................................................... 540,084 566,414
--------------
Federal Housing Administration (FHA) (2.3%)
FHA Norwest Insured Project Pool #40
7.430% 08/01/2021................................................................... 2,704,079 2,759,865
FHA Insured Project Pool #2022
7.430% 12/01/2020................................................................... 1,414,976 1,435,316
FHA Insured Project Pool #1984-D
9.680% 02/01/2024................................................................... 825,790 864,239
FHA Insured Project Pool #051-11078
8.350% 04/01/2030................................................................... 2,228,569 2,293,509
FHA Insured Project Pool #092-35499
8.450% 11/15/2031................................................................... 793,388 820,411
--------------
8,173,340
--------------
Federal Home Loan Mortgage Corporation (FHLMC) (2.5%)
7.500% 06/01/2010 - 11/01/2011...................................................... 8,669,531 8,794,199
--------------
Agency Collateralized Mortgage Obligations (23.4%)
American Southwest Financial Corp.
Series 64 Cl. E
8.500% 06/17/2019................................................................... 905,463 903,200
FHLMC Multiclass Mtg. Partn. Ctfs.
Gtd. Series 1547 Cl. C
5.750% 04/15/2023................................................................... 350,905 318,667
FHLMC Multiclass Mtg. Partn. Ctfs.
Gtd. Series 1632 Cl. B
6.000% 11/15/2023................................................................... 2,687,704 2,447,504
<CAPTION>
Principal
Amount Value(1)
------------- --------------
<S> <C> <C>
<S> <C> <C>
FHLMC Multiclass Mtg. Partn. Ctfs.
Gtd. Series 1763 Cl. H
8.250% 07/15/2023................................................................... $ 692,000 $ 725,299
FHLMC Multiclass Mtg. Partn. Ctfs.
Gtd. Series 1779 Cl. G
9.500% 12/15/2023................................................................... 1,000,000 1,083,750
FHLMC Multiclass Mtg. Partn. Ctfs.
Gtd. Series 1795 Cl. A
7.000% 11/15/2022................................................................... 1,331,330 1,331,330
FHLMC Multiclass Mtg. Partn. Ctfs.
Gtd. Series 1895 Cl. B
7.500% 12/15/2023................................................................... 3,200,000 3,180,992
FHLMC Multiclass Mtg. Partn. Ctfs.
Gtd. Series 1897 Cl. E
7.000% 07/15/2024................................................................... 6,000,000 5,769,360
FHLMC Multiclass Mtg. Partn. Ctfs.
Gtd. Series 1890 Cl. K
7.000% 03/15/2022................................................................... 1,280,000 1,259,405
FHLMC Multiclass Mtg. Partn. Ctfs.
Gtd. Series 1904 Cl. AB
7.000% 07/15/2022................................................................... 5,803,934 5,805,733
FHLMC Multiclass Mtg. Partn. Ctfs.
Gtd. Series 1904 Cl. B
7.000% 07/15/2022................................................................... 2,567,000 2,525,286
FHLMC Multiclass Mtg. Partn. Ctfs.
Gtd. Series 1920 Cl. D
7.000% 01/15/2009................................................................... 2,080,000 2,068,310
FHLMC GNMA Multiclass Mtg. Partn. Ctfs.
Gtd. Series 31 Cl. D
0.000% 01/25/2006................................................................... 3,618,977 2,456,381
FHLMC GNMA Multiclass Mtg. Partn. Ctfs.
Gtd. Series 35 Cl. PH
7.750% 03/17/2023................................................................... 1,580,000 1,633,815
FNMA Gtd. REMIC Pass Thru Ctf.
REMIC Tr. 1991-94 Cl. C
0.000% 01/25/1999................................................................... 2,969,467 2,768,107
FNMA Gtd. REMIC Pass Thru Ctf.
REMIC Tr. 1992-214 Cl. PL
7.500% 05/25/2021................................................................... 1,700,000 1,746,206
FNMA Gtd. REMIC Pass Thru Ctf.
REMIC Tr. 1994-20 Cl. PJ
5.800% 05/25/2004................................................................... 410,000 408,331
FNMA Gtd. REMIC Pass Thru Ctf.
REMIC Tr. 1996-G1 Cl. PG
7.500% 06/17/2022................................................................... 3,500,000 3,574,375
FNMA Gtd. REMIC Pass Thru Ctf.
REMIC Tr. 1996-G3 Cl. C
7.500% 03/20/2024................................................................... 2,400,000 2,386,512
</TABLE>
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-----------------------------------------------------------------
[LOGO]
- ---------------- ----------------
-- COLUMBIA FIXED INCOME SECURITIES FUND, INC. --
-------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount Value(1)
------------- --------------
<S> <C> <C>
</TABLE>
U.S. Government, Federal Agency Obligations (Continued)
<TABLE>
<S> <C> <C>
FNMA Gtd. REMIC Pass Thru Ctf.
REMIC Tr. 1996-W2 Cl. A5
7.550% 06/25/2026................................................................... $ 2,770,000 $ 2,824,957
FNMA Gtd. REMIC Pass Thru Ctf.
REMIC Tr. 1996-W3 Cl. A5
7.550% 08/25/2026................................................................... 1,914,000 1,952,586
FNMA Gtd. REMIC Pass Thru Ctf.
REMIC Tr. 1996-28 Cl. AB
7.000% 09/25/2023................................................................... 3,010,000 2,882,075
FNMA Gtd. REMIC Pass Thru Ctf.
REMIC Tr. 1996-46 Cl. G
7.500% 06/25/2024................................................................... 8,212,400 8,173,884
FNMA Gtd. REMIC Pass Thru Ctf.
REMIC Tr. 1996-48 Cl. B
7.500% 12/25/2024................................................................... 8,717,000 8,783,772
FNMA Gtd. REMIC Pass Thru Ctf.
REMIC Tr. 1996-51 Cl. AL
7.000% 12/18/2024................................................................... 3,620,000 3,496,703
FNMA Gtd. REMIC Pass Thru Ctf.
REMIC Tr. 1996-51 Cl. AT
7.000% 12/18/2023................................................................... 5,190,000 5,025,373
FNMA Gtd. REMIC Pass Thru Ctf.
REMIC Tr. 1996-51 Cl. J
7.000% 05/18/2024................................................................... 6,037,795 6,042,504
Puerto Rico Housing Finance Corp.
Series A Cl. 4
9.000% 07/20/2017................................................................... 1,045,699 1,045,699
U.S. VA Vendee Mtg. Gtd. REMIC
Pass Thru Ctf. 1995-1C Cl. 3E
8.000% 07/15/2018................................................................... 870,000 903,852
--------------
83,523,968
--------------
Total U.S. Government,
Federal Agency Obligations
(Cost $217,124,849) ................................................................. 219,362,884
--------------
Other Securitized Loans (8.8%)
Collateralized Mortgage Obligations (8.8%)
Bear Stearns Mortgage Securities, Inc. Series 1996-2 Cl. A1
6.910% 01/25/2025................................................................... 2,867,109 2,763,177
Bear Stearns Mortgage Securities, Inc. Series 1996-4 Cl. AI7
8.125% 09/25/2027................................................................... 5,486,000 5,601,700
Bear Stearns Mortgage Securities, Inc. Series 1996-5 Cl. A7
8.125% 09/25/2027................................................................... 3,712,000 3,792,031
<CAPTION>
Principal
Amount Value(1)
------------- --------------
<S> <C> <C>
<S> <C> <C>
Residential Asset Securitization Trust
Series 1996-A7 Cl. A3
9.500% 10/25/2026................................................................... $ 2,056,584 $ 2,130,497
Residential Funding Mtg. Sec., Inc.
Series 1993-S45 Cl. A10
8.000% 12/25/2023................................................................... 1,250,000 1,285,162
Residential Accredit Loans, Inc.
Series 1996-QS4 Cl. AI6
8.000% 08/25/2026................................................................... 3,500,000 3,553,585
Residential Accredit Loans, Inc.
Series 1996-QS5 Class AI8
8.000% 09/25/2026................................................................... 1,440,000 1,461,931
Salomon Brothers Mortgage
Securities VII, Inc.
Series 1993-3 Cl. A4
7.200% 08/25/2023................................................................... 4,509,000 4,478,700
Saxon Asset Securities Co.
Series 1996-1 Cl. A2
8.060% 09/25/2027................................................................... 6,265,000 6,352,146
--------------
Total Other Securitized Loans
(Cost $30,980,581) .................................................................. 31,418,929
--------------
Corporate Bonds (24.9%)
Industrial (12.1%)
American Standard, Inc. Step-Up Coupon
0.000% to 06/01/1998, then 10.500% to 06/01/2005.................................... 500,000 465,000
Ethan Allen, Inc.
8.750% 03/15/2001................................................................... 975,000 1,010,344
Federated Department Stores, Inc.
10.000% 02/15/2001................................................................... 600,000 651,738
Foster Wheeler Corp.
6.750% 11/15/2005................................................................... 2,925,000 2,826,193
Freeport-McMoRan Resource Partners L.P.
8.750% 02/15/2004................................................................... 500,000 518,750
Harrahs Operating, Inc.
10.875% 04/15/2002................................................................... 1,250,000 1,318,750
Hospital Corp. America
0.000% 06/01/1997................................................................... 1,750,000 1,711,132
La Quinta Inns, Inc.
9.250% 05/15/2003................................................................... 375,000 391,875
Lenfest Communications, Inc.
8.375% 11/01/2005................................................................... 2,100,000 2,029,125
Lockheed Martin Corp.
6.625% 06/15/1998................................................................... 6,400,000 6,449,344
Louis Dreyfus Natural Gas Corp.
9.250% 06/15/2004................................................................... 650,000 692,673
Marriott International, Inc.
6.750% 12/01/2009................................................................... 3,000,000 2,810,550
</TABLE>
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-----------------------------------------------------------------
[LOGO]
- ---------------- ----------------
-- COLUMBIA FIXED INCOME SECURITIES FUND, INC. --
-------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount Value(1)
------------- --------------
<S> <C> <C>
</TABLE>
Corporate Bonds (Continued)
<TABLE>
<S> <C> <C>
Nabisco, Inc.
6.700% 06/15/2002................................................................... $ 3,750,000 $ 3,712,725
News America Holdings, Inc.
7.600% 10/11/2015................................................................... 6,250,000 5,965,500
Occidental Petroleum Corp.
10.125% 11/15/2001................................................................... 1,285,000 1,463,654
Royal Caribbean Cruises Ltd.
11.375% 05/15/2002................................................................... 2,900,000 3,088,500
Sears, Roebuck Acceptance Corp.
Medium Term Notes
6.400% 10/11/2000................................................................... 4,525,000 4,504,683
Time Warner Entertainment Co. L.P.
8.375% 03/15/2023................................................................... 2,600,000 2,636,062
Time Warner, Inc.
9.125% 01/15/2013................................................................... 800,000 873,360
--------------
43,119,958
--------------
Financial (8.8%)
Aetna Services, Inc.
7.625% 08/15/2026................................................................... 5,000,000 5,041,700
California Hotel Finance Corp.
11.000% 12/01/2002................................................................... 350,000 365,750
Ford Motor Credit Co.
6.850% 08/15/2000................................................................... 4,000,000 4,036,760
Goldman Sachs Group L.P. (144A)
6.750% 02/15/2006................................................................... 3,700,000 3,611,274
Health Care Properties, Inc.
6.500% 02/15/2006................................................................... 6,400,000 6,074,368
Mellon Financial Co.
7.625% 11/15/1999................................................................... 5,200,000 5,366,920
USL Capital Corp.
6.500% 12/01/2003................................................................... 3,350,000 3,281,627
United Dominion Realty Trust
Series A Medium Term Note
7.020% 11/15/2005................................................................... 3,725,000 3,671,844
--------------
31,450,243
--------------
Utility (1.6%)
California Energy, Inc.
9.875% 06/30/2003................................................................... 350,000 367,500
<CAPTION>
Principal
Amount Value(1)
------------- --------------
<S> <C> <C>
<S> <C> <C>
Northern Indiana Public Service Co. Medium Term Note
6.900% 06/01/2000................................................................... $ 1,250,000 $ 1,265,000
6.750% 06/01/2000................................................................... 2,500,000 2,518,675
Pacificorp
Medium Term Note
6.120% 01/15/2006................................................................... 1,825,000 1,728,019
--------------
5,879,194
--------------
Yankee (2.4%)
Manitoba Province
7.750% 02/01/2002................................................................... 2,685,000 2,819,438
Ontario Province CDA
6.000% 02/21/2006................................................................... 6,000,000 5,707,500
--------------
8,526,938
--------------
Total Corporate Bonds
(Cost $89,647,272) .................................................................. 88,976,333
--------------
Total investments, excluding temporary cash investment
(Cost $337,752,702) ................................................................. 339,758,146
--------------
Repurchase Agreement (3.7%)
Goldman Sachs Corp.
6.354% dated 12/31/1996,
due 01/02/1997 in the
amount of $13,101,923.
Collateralized by U.S. Treasury Bond
6.500% due 11/15/2026
(Cost $13,097,375) .................................................................. 13,097,375 13,097,375
--------------
Total Investments (99.0%)
(Cost $350,850,077)...................................................................... 352,855,521
Receivables less liabilities (1.0%)....................................................... 3,565,375
--------------
Net Assets (100.0%)....................................................................... $ 356,420,896
--------------
--------------
</TABLE>
(1) See Note 1 of Notes to Financial Statements.
The accompanying notes are an integral part
of the financial statements.
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-----------------------------------------------------------------
[LOGO]
- --------------------- ---------------------
-- COLUMBIA MUNICIPAL BOND FUND, INC. --
----------------------------------------
<TABLE>
<CAPTION>
Principal
December 31, 1996 Amount Value(1)
------------- --------------
<S> <C> <C>
State of Oregon General Obligation Bonds (13.3%)
Board of Higher Education Series A
6.350% 08/01/2014................................................................... $ 1,535,000 $ 1,642,450
0.000% 08/01/2014................................................................... 450,000 168,750
5.900% 08/01/2018................................................................... 1,000,000 1,025,000
Board of Higher Education Refunding Series B
6.250% 10/15/2012................................................................... 1,015,000 1,064,481
Elderly & Disabled Housing Refunding Series B
6.250% 08/01/2013................................................................... 1,000,000 1,057,500
Pollution Control Series C
5.625% 06/01/2013................................................................... 3,495,000 3,495,000
5.900% 06/01/2014................................................................... 4,705,000 4,716,762
Veterans' Welfare
11.250% 10/01/1998................................................................... 2,885,000 3,231,200
9.000% 04/01/1999................................................................... 1,800,000 1,982,250
11.000% 06/01/1999................................................................... 865,000 997,994
7.000% 07/01/2000................................................................... 1,350,000 1,471,500
9.000% 10/01/2000................................................................... 1,010,000 1,172,862
11.000% 12/01/2000................................................................... 780,000 966,225
0.000% 07/01/2001................................................................... 1,200,000 979,500
6.000% 08/01/2002................................................................... 2,000,000 2,147,500
6.000% 02/01/2004................................................................... 695,000 749,731
9.000% 04/01/2004................................................................... 260,000 326,625
9.000% 04/01/2005................................................................... 960,000 1,231,200
6.750% 05/01/2005................................................................... 2,080,000 2,360,800
9.000% 10/01/2005................................................................... 1,585,000 2,054,556
7.250% 01/01/2007................................................................... 1,365,000 1,614,112
9.200% 04/01/2007................................................................... 1,095,000 1,464,563
8.250% 07/01/2007................................................................... 510,000 645,788
9.200% 10/01/2007................................................................... 1,200,000 1,620,000
8.000% 01/01/2008................................................................... 1,160,000 1,445,650
7.300% 07/01/2008................................................................... 630,000 755,213
8.000% 07/01/2008................................................................... 480,000 601,800
6.875% 12/01/2013................................................................... 3,370,000 3,589,050
5.850% 10/01/2015................................................................... 1,105,000 1,132,625
7.000% 12/01/2015................................................................... 2,125,000 2,271,094
0.000% 12/01/2017................................................................... 2,000,000 2,000,000
--------------
Total State of Oregon General
Obligation Bonds
(Cost $47,693,355) .................................................................. 49,981,781
--------------
<CAPTION>
Principal
Amount Value(1)
------------- --------------
<S> <C> <C>
<S> <C> <C>
Oregon General Obligation Bonds (24.9%)
Clackamas & Washington Counties
School District #3JT
West Linn-Wilsonville
5.875% 08/01/2009................................................................... $ 1,000,000 $ 1,037,500
5.875% 10/01/2009................................................................... 2,550,000 2,667,937
Clackamas County School District #1
6.250% 07/01/2002................................................................... 925,000 972,406
6.300% 07/01/2003................................................................... 700,000 735,875
6.500% 07/01/2004................................................................... 1,235,000 1,306,012
6.500% 07/01/2005................................................................... 1,355,000 1,429,525
6.500% 07/01/2006................................................................... 1,485,000 1,562,962
Clackamas County School District #7J
Lake Oswego Series A
5.300% 06/15/2005................................................................... 1,000,000 1,036,250
5.500% 06/15/2006................................................................... 1,000,000 1,042,500
5.700% 06/15/2010................................................................... 2,735,000 2,806,794
Clackamas County School District #12 North Clackamas
4.650% 06/01/2004................................................................... 750,000 742,500
Clackamas Community College District
5.250% 12/01/2009................................................................... 1,270,000 1,274,762
Deschutes County Administrative School District #1 Bend-Lapine
0.000% 02/01/2000................................................................... 1,175,000 1,026,656
0.000% 02/01/2001................................................................... 1,135,000 950,562
0.000% 02/01/2002................................................................... 1,445,000 1,150,581
5.800% 02/01/2004................................................................... 780,000 821,925
5.900% 02/01/2005................................................................... 980,000 1,031,450
Eugene Public Safety Facilities
6.000% 06/01/2005................................................................... 850,000 925,437
5.625% 06/01/2013................................................................... 1,295,000 1,307,950
Jackson County School District #549C Medford
5.375% 06/01/2012................................................................... 1,200,000 1,177,500
Lane County Area Education District
Lane Community College
5.300% 06/01/2007................................................................... 1,000,000 1,036,250
4.850% 06/01/2008................................................................... 4,080,000 4,029,000
5.000% 06/01/2009................................................................... 1,000,000 991,250
Lane County School District #1
Pleasant Hill
5.350% 12/01/2012................................................................... 650,000 638,625
5.450% 12/01/2013................................................................... 725,000 719,563
</TABLE>
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<TABLE>
<CAPTION>
Principal
Amount Value(1)
------------- --------------
<S> <C> <C>
</TABLE>
Oregon General Obligation Bonds (Continued)
<TABLE>
<S> <C> <C>
Lane County School District #4J Eugene
0.000% 07/01/2001................................................................... $ 2,015,000 $ 1,647,263
0.000% 01/01/2003................................................................... 1,345,000 1,017,156
0.000% 07/01/2003................................................................... 1,480,000 1,093,350
0.000% 01/01/2005................................................................... 1,395,000 948,600
0.000% 07/01/2005................................................................... 2,325,000 1,543,219
5.250% 07/01/2008................................................................... 590,000 595,900
Lane County School District #19
Springfield Refunding
0.000% 02/01/1999................................................................... 470,000 430,050
Metro Open Spaces Program Series C
5.100% 09/01/2009................................................................... 2,375,000 2,327,500
Metro Washington Park Zoo Series A
5.250% 01/15/2009................................................................... 1,040,000 1,043,900
Multnomah-Clackamas Counties
School District #10JT Gresham
5.250% 06/01/2017................................................................... 1,620,000 1,534,950
Multnomah-Clackamas Counties
School District #51JT Riverdale
5.750% 06/01/2016................................................................... 2,270,000 2,309,725
Multnomah County Public Improvements
5.250% 10/01/2013................................................................... 1,800,000 1,759,500
Multnomah County School District #1J Portland
4.250% 06/01/2003................................................................... 5,000,000 4,900,000
5.000% 06/01/2004................................................................... 1,000,000 1,017,500
Multnomah County School District #4 Gresham
6.100% 01/01/2008................................................................... 3,000,000 3,157,500
6.100% 01/01/2009................................................................... 200,000 209,750
Multnomah County School District #7 Reynolds
5.250% 06/01/2011................................................................... 1,500,000 1,481,250
Multnomah County School District #40 David Douglas
7.100% 06/01/2002................................................................... 880,000 984,500
Port of Portland Series A
4.500% 03/01/2006................................................................... 2,000,000 1,932,500
0.000% 03/01/2007................................................................... 3,000,000 1,785,000
Portland Public Improvements Series A
5.750% 06/01/2014................................................................... 2,560,000 2,585,600
Portland Public Improvements Series B
4.625% 12/01/2010................................................................... 1,680,000 1,677,900
<CAPTION>
Principal
Amount Value(1)
------------- --------------
<S> <C> <C>
<S> <C> <C>
Portland Recreational Facilities Improvements Series A
5.750% 06/01/2012................................................................... $ 1,370,000 $ 1,414,525
5.750% 06/01/2013................................................................... 1,345,000 1,383,669
5.750% 06/01/2015................................................................... 1,155,000 1,183,875
Portland Recreational Facilities Improvements Series B
5.500% 06/01/2009................................................................... 2,115,000 2,146,725
5.750% 06/01/2014................................................................... 1,750,000 1,800,313
5.750% 06/01/2015................................................................... 2,955,000 3,021,488
Portland Community College District
0.000% 07/01/2007................................................................... 2,025,000 1,184,625
6.000% 07/01/2012................................................................... 1,500,000 1,554,375
Tri-County Metropolitan Transportation District Light Rail Extension Series A
6.000% 07/01/2012................................................................... 3,495,000 3,630,431
Tualatin Hills Park & Recreation District
5.700% 03/01/2009................................................................... 1,340,000 1,363,450
5.750% 03/01/2010................................................................... 730,000 740,038
Washington County Refunding
6.200% 12/01/2007................................................................... 1,500,000 1,590,000
Washington & Clackamas Counties
School District #23J
Tigard Refunding
5.400% 01/01/2010................................................................... 1,720,000 1,722,150
Washington County School District #48J Beaverton Series B
6.150% 06/01/2008................................................................... 1,010,000 1,056,713
Washington County School District #48J Beaverton Series C
7.800% 06/01/2003................................................................... 1,200,000 1,405,500
--------------
Total Oregon General Obligation Bonds
(Cost $91,259,282) .................................................................. 93,602,262
--------------
Oregon Revenue Bonds (19.5%)
Clackamas County Hospital Facility
Authority Elderly Housing
Willamette View Income Project
7.000% 11/15/2011................................................................... 1,445,000 1,551,569
Clackamas County Hospital Facility Authority Robison Jewish Home Project
6.250% 10/01/2021................................................................... 2,000,000 2,000,000
Clackamas County Hospital Facility Authority GNMA Collateral Jennings Lodge
7.500% 10/20/2031................................................................... 1,030,000 1,114,975
</TABLE>
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<CAPTION>
Principal
Amount Value(1)
------------- --------------
<S> <C> <C>
</TABLE>
Oregon Revenue Bonds (Continued)
<TABLE>
<S> <C> <C>
Clackamas County Housing Authority Multifamily Housing Easton Ridge Series A
5.800% 12/01/2016................................................................... $ 1,755,000 $ 1,737,450
Deschutes County Hospital Facility Authority
5.750% 01/01/2009................................................................... 1,670,000 1,703,400
Deschutes Valley Water District
5.875% 09/01/2005................................................................... 3,200,000 3,340,000
Eugene Electric Utility
5.800% 08/01/2008................................................................... 1,435,000 1,485,225
5.800% 08/01/2009................................................................... 1,300,000 1,339,000
5.750% 08/01/2011................................................................... 715,000 730,194
5.000% 08/01/2017................................................................... 1,480,000 1,370,850
Eugene Trojan Nuclear Project
5.750% 09/01/1997................................................................... 1,500,000 1,504,545
5.750% 09/01/1998................................................................... 1,500,000 1,503,615
Gresham Sewer
5.350% 06/01/2006................................................................... 860,000 883,650
Gresham Stormwater
6.100% 10/01/2009................................................................... 1,115,000 1,186,081
Lebanon Wastewater Refunding
5.750% 06/01/2011................................................................... 1,225,000 1,228,062
Metropolitan Service District
Metro Central Transfer Station A
5.125% 07/01/2009................................................................... 2,360,000 2,357,050
Multnomah County Educational Facilities University Portland Project
6.000% 04/01/2014................................................................... 1,225,000 1,257,156
North Clackamas Parks & Recreation
District Recreational Facilities
5.700% 04/01/2013................................................................... 2,840,000 2,847,100
Northern Wasco County
People's Utility District Electric
0.000% 02/01/2006................................................................... 610,000 373,625
0.000% 02/01/2007................................................................... 585,000 332,719
0.000% 02/01/2008................................................................... 610,000 321,775
0.000% 02/01/2011................................................................... 500,000 213,125
Oregon City Sewer
6.500% 10/01/2007................................................................... 500,000 541,250
Oregon Health, Housing, Educational & Cultural Facilities Authority
Reed College Project Series A
5.300% 07/01/2011................................................................... 500,000 490,000
Oregon Housing Agency Mortgage
Single-Family Mortgage Program Series A
7.375% 07/01/2010................................................................... 60,000 61,725
<CAPTION>
Principal
Amount Value(1)
------------- --------------
<S> <C> <C>
<S> <C> <C>
Oregon Housing & Community Services Department Housing Finance Assisted Insured
Multi-Unit B
6.800% 07/01/2013................................................................... $ 8,270,000 $ 8,642,150
Oregon Housing & Community Services Department Mortgage
Single-Family Mortgage Program Series A
6.800% 07/01/2016................................................................... 2,305,000 2,423,131
Oregon Housing & Community Services Department Mortgage Single-Family Mortgage Program
Series D
6.700% 07/01/2013................................................................... 1,000,000 1,038,750
Oregon Housing & Community Services Department Mortgage Single-Family Mortgage Program
Series E
6.750% 07/01/2016................................................................... 3,585,000 3,692,550
Portland Hydroelectric Power
6.800% 10/01/2004................................................................... 465,000 468,790
Portland Parking Refunding
6.375% 10/01/2012................................................................... 1,700,000 1,776,500
Portland Sewer System Refunding Series A
5.000% 03/01/2006................................................................... 1,175,000 1,180,875
6.200% 06/01/2012................................................................... 5,540,000 5,830,850
6.250% 06/01/2015................................................................... 3,730,000 3,916,500
Portland Water System
5.250% 08/01/2013................................................................... 2,615,000 2,575,775
Prineville Sewer First Lien
6.500% 07/01/2004................................................................... 500,000 537,500
6.800% 07/01/2012................................................................... 1,050,000 1,151,063
Reedsport Water
7.000% 10/01/2014................................................................... 520,000 577,850
South Fork Water Board First Lien
5.450% 02/01/2014................................................................... 1,300,000 1,256,125
Tri-County Metropolitan Transportation District Refunding Series A
5.700% 08/01/2013................................................................... 3,000,000 3,033,750
Washington County
Unified Sewer Agency Revenue Series A
6.200% 10/01/2010................................................................... 3,460,000 3,680,575
--------------
Total Oregon Revenue Bonds
(Cost $70,506,772) .................................................................. 73,256,875
--------------
Oregon Insured Bonds (27.8%)
Central Oregon Community College District
5.800% 06/01/2007................................................................... 760,000 794,200
Chemeketa Community College District
5.950% 06/01/2016................................................................... 1,600,000 1,646,000
</TABLE>
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<CAPTION>
Principal
Amount Value(1)
------------- --------------
<S> <C> <C>
</TABLE>
Oregon Insured Bonds (Continued)
<TABLE>
<S> <C> <C>
Clackamas County Health Facility Authority Revenue Refunding Adventist Health A
6.350% 03/01/2009................................................................... $ 1,500,000 $ 1,603,125
Clackamas County School District #115 Gladstone
6.150% 06/01/2014................................................................... 1,000,000 1,061,250
Clatsop County Administrative School District #10
5.875% 07/01/2012................................................................... 630,000 643,387
Crook County School District
4.900% 02/01/2009................................................................... 1,165,000 1,116,944
Deschutes & Jefferson Counties School District #2J Redmond Refunding
5.600% 06/01/2009................................................................... 1,000,000 1,021,250
Hood River County School District
5.650% 06/01/2008................................................................... 1,020,000 1,060,800
Jefferson County School District #509J
5.500% 06/15/2013................................................................... 1,400,000 1,410,500
Josephine County School District #7
Grants Pass
5.700% 06/01/2013................................................................... 2,000,000 2,032,500
Lane County School District #19 Springfield
6.150% 10/15/2009................................................................... 1,500,000 1,616,250
Lane County School District #52 Bethel
6.250% 12/01/2007................................................................... 580,000 642,350
6.400% 12/01/2009................................................................... 750,000 823,125
Lincoln County School District
6.000% 06/15/2006................................................................... 900,000 982,125
6.000% 06/15/2007................................................................... 1,855,000 2,005,719
6.000% 06/15/2008................................................................... 1,150,000 1,243,437
6.000% 06/15/2009................................................................... 2,465,000 2,659,119
5.600% 06/15/2010................................................................... 2,480,000 2,560,600
5.250% 06/15/2012................................................................... 2,900,000 2,863,750
Malheur County School District #26 Nyssa
5.750% 06/01/2015................................................................... 1,910,000 1,948,200
Marion & Linn County Elementary School District #77J Stayton
6.250% 07/01/2013................................................................... 1,260,000 1,354,500
Marion County School District #103C Woodburn Series B
0.000% 11/01/2006................................................................... 2,000,000 1,235,000
0.000% 11/01/2007................................................................... 2,000,000 1,165,000
0.000% 11/01/2009................................................................... 2,500,000 1,293,750
0.000% 11/01/2011................................................................... 1,710,000 780,187
Medford Hospital Facility Authority Revenue Gross-Rogue Valley Health Services
6.800% 12/01/2011................................................................... 1,320,000 1,430,550
<CAPTION>
Principal
Amount Value(1)
------------- --------------
<S> <C> <C>
<S> <C> <C>
Morrow County School District #1
6.000% 06/01/2006................................................................... $ 880,000 $ 946,000
Multnomah County School District #3 Parkrose
5.400% 12/01/2005................................................................... 1,010,000 1,060,500
5.700% 12/01/2008................................................................... 1,330,000 1,394,837
5.700% 12/01/2009................................................................... 1,085,000 1,131,112
5.500% 12/01/2011................................................................... 1,000,000 1,012,500
Ontario Oregon Catholic Health
Holy Rosary Medical Center
5.500% 11/15/2012................................................................... 1,500,000 1,503,750
Oregon Health Sciences University Revenue Series A
0.000% 07/01/2009................................................................... 1,530,000 784,125
0.000% 07/01/2012................................................................... 1,315,000 557,231
0.000% 07/01/2014................................................................... 2,495,000 935,625
0.000% 07/01/2015................................................................... 4,325,000 1,524,562
Oregon Health Sciences University Revenue Series B
4.875% 07/01/2007................................................................... 1,695,000 1,654,744
Oregon Department of General Services Certificates Participation Series C
5.800% 03/01/2015................................................................... 840,000 845,250
Oregon Department of Administrative Services Certificates Participation Series A
5.375% 11/01/2004................................................................... 1,500,000 1,546,875
5.250% 05/01/2008................................................................... 950,000 958,312
5.250% 11/01/2009................................................................... 2,460,000 2,460,000
5.700% 05/01/2015................................................................... 1,000,000 1,006,250
5.375% 11/01/2016................................................................... 4,260,000 4,137,525
Oregon Department of Administrative Services Certificates Participation Series C
5.500% 05/01/2011................................................................... 2,000,000 2,002,500
Oregon Health, Housing, Educational & Cultural Facilities Authority
Lewis & Clark College
6.000% 10/01/2013................................................................... 965,000 1,008,425
Port of Portland Airport Revenue Portland International Airport Series 7-A
6.500% 07/01/2004................................................................... 500,000 538,125
6.750% 07/01/2015................................................................... 2,795,000 3,039,562
Port of Portland Airport Revenue Series 9-A
5.500% 07/01/2006................................................................... 500,000 515,625
Portland Arena Gas Tax Revenue
0.000% 06/01/2016................................................................... 1,100,000 343,750
0.000% 06/01/2017................................................................... 1,420,000 415,350
Portland Gas Tax Revenue Series A
5.800% 06/01/2016................................................................... 1,625,000 1,657,500
</TABLE>
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<TABLE>
<CAPTION>
Principal
Amount Value(1)
------------- --------------
<S> <C> <C>
</TABLE>
Oregon Insured Bonds (Continued)
<TABLE>
<S> <C> <C>
Portland Sewer System Revenue Series A
6.000% 10/01/2012................................................................... $ 2,110,000 $ 2,207,588
Salem-Keizer School District #24J
5.400% 06/01/2006................................................................... 1,000,000 1,031,250
Tillamook County
6.250% 01/01/2014................................................................... 960,000 1,028,400
Umatilla County School District #8R Hermiston
6.000% 12/01/2010................................................................... 695,000 730,619
Union Health District
5.750% 02/01/2010................................................................... 1,070,000 1,087,388
Washington County School District #88J Sherwood
6.100% 06/01/2012................................................................... 1,000,000 1,061,250
Washington County Unified Sewer Agency Revenue Series A
0.000% 10/01/2003................................................................... 1,000,000 727,500
0.000% 10/01/2005................................................................... 5,230,000 3,406,038
5.900% 10/01/2006................................................................... 3,730,000 3,963,125
0.000% 10/01/2007................................................................... 4,835,000 2,786,169
5.400% 10/01/2012................................................................... 770,000 774,813
6.125% 10/01/2012................................................................... 8,010,000 8,460,563
Western Lane Hospital District Facility Authority Revenue Refunding
Sisters St. Joseph Peace
5.625% 08/01/2007................................................................... 2,080,000 2,163,200
Yamhill County School District #29J Newberg
5.500% 06/01/2010................................................................... 1,405,000 1,426,075
6.100% 06/01/2011................................................................... 3,355,000 3,560,494
--------------
Total Oregon Insured Bonds
(Cost $100,738,594) ................................................................. 104,388,125
--------------
Oregon Pre-Refunded Bonds (4.4%)
Beaverton Water Revenue Series A
7.150% 06/01/2004................................................................... 455,000 495,381
Clackamas County School District #7J
Lake Oswego Series A
7.000% 06/15/2008................................................................... 1,250,000 1,359,375
7.100% 06/15/2010................................................................... 750,000 817,500
Clackamas County School District #12 North Clackamas
6.500% 06/01/2005................................................................... 1,000,000 1,070,000
6.500% 06/01/2007................................................................... 1,455,000 1,556,850
6.500% 06/01/2009................................................................... 1,655,000 1,770,850
<CAPTION>
Principal
Amount Value(1)
------------- --------------
<S> <C> <C>
<S> <C> <C>
Metropolitan Service District General Revenue Metro Headquarters Building Project A
6.600% 07/01/2011................................................................... $ 785,000 $ 844,856
Metropolitan Service District Metro East Transfer Station A
7.000% 01/01/2001................................................................... 500,000 546,250
Oregon Department of General Services Certificates Participation Series A
7.200% 01/15/2015................................................................... 1,100,000 1,210,000
Oregon Department of General Services Certificates Participation Series B
7.200% 01/15/2015................................................................... 670,000 737,000
Oregon Department of General Services Certificates Participation Series F
7.500% 09/01/2015................................................................... 2,330,000 2,624,163
Oregon Housing, Educational & Cultural Facilities Authority Reed College Project
Series A
6.350% 07/01/2002................................................................... 320,000 349,200
6.400% 07/01/2003................................................................... 280,000 305,900
Oregon Housing, Educational & Cultural Facilities Authority Revenue
Lewis & Clark College Project A
7.000% 07/01/2010................................................................... 1,100,000 1,215,500
Portland Airport Way Urban Renewal & Redevelopment Tax Increment Series A
7.300% 06/01/2010................................................................... 1,400,000 1,533,000
--------------
Total Oregon Pre-Refunded Bonds
(Cost $15,040,288) .................................................................. 16,435,825
--------------
Oregon Other Bonds (2.8%)
Grants Pass Urban Renewal Agency Tax Increment
6.125% 08/01/2012................................................................... 750,000 762,187
Hood River Urban Renewal Agency Revenue
6.250% 12/15/2011................................................................... 1,250,000 1,310,937
Lane County School District #4J Eugene Certificates Participation
6.900% 10/01/2000................................................................... 500,000 544,375
Lebanon Special Obligation Revenue Refunding Lease Water
5.400% 10/01/2013................................................................... 755,000 737,069
Medford Urban Renewal Agency Tax Revenue
5.875% 09/01/2010................................................................... 500,000 503,125
</TABLE>
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<CAPTION>
Principal
Amount Value(1)
------------- --------------
<S> <C> <C>
</TABLE>
Oregon Other Bonds (Continued)
<TABLE>
<S> <C> <C>
Newberg Certificates Participation
5.900% 12/01/1998................................................................... $ 365,000 $ 373,669
6.000% 12/01/1999................................................................... 390,000 403,162
6.100% 12/01/2000................................................................... 410,000 427,938
6.200% 12/01/2001................................................................... 410,000 432,038
Portland Building Refunding Series A
4.750% 04/01/2007................................................................... 2,000,000 1,965,000
Portland Airport Way Urban Renewal & Redevelopment Tax Increment Series C
5.900% 06/01/2006................................................................... 860,000 903,000
Portland Urban Renewal & Redevelopment Refunding, Downtown Waterfront Series L
6.400% 06/01/2008................................................................... 2,085,000 2,225,738
--------------
Total Oregon Other Bonds
(Cost $10,107,456) .................................................................. 10,588,238
--------------
Other Bonds (5.1%)
Puerto Rico Commonwealth Public Improvements
6.250% 07/01/2009................................................................... 3,000,000 3,330,000
6.250% 07/01/2013................................................................... 1,000,000 1,105,000
Puerto Rico Commonwealth Aquaduct & Sewer Authority Revenue Series A
9.000% 07/01/2009................................................................... 5,325,000 6,756,094
Puerto Rico Housing Finance Corp. Single Family Mortgage Revenue Portfolio 1 Series B
7.500% 10/15/2012................................................................... 1,040,000 1,090,700
Puerto Rico Housing Finance Corp. Single Family Mortgage Revenue Portfolio 1 Series C
6.750% 10/15/2013................................................................... 710,000 744,612
Puerto Rico Housing Finance Corp. Multi Family Mortgage Revenue Portfolio A-1
7.500% 04/01/2022................................................................... 1,680,000 1,768,200
<CAPTION>
Principal
Amount Value(1)
------------- --------------
<S> <C> <C>
<S> <C> <C>
Puerto Rico Industrial, Medical & Environmental Pollution Control Facilities Financing
Authority Revenue FHA Insured Mortgage Dr. Pila Hospital Project-A
7.700% 08/01/2008................................................................... $ 2,000,000 $ 2,155,000
Puerto Rico Housing Bank & Finance Agency Single Family Mortgage Revenue FHA
Homeownership 5th Portfolio
7.500% 12/01/2015................................................................... 610,000 670,237
Virgin Islands Public Finance Authority Revenue Unrefunded Balance Series A
7.300% 10/01/2018................................................................... 1,170,000 1,417,163
--------------
Total Other Bonds
(Cost $18,036,949) .................................................................. 19,037,006
--------------
Total investments, excluding temporary cash investment
(Cost $353,382,696) ................................................................. 367,290,112
--------------
Tax-Exempt Money Market Investment (1.2%)
SEI Tax Exempt Trust
(Cost $4,438,727) ................................................................... 4,438,727 4,438,727
--------------
Total Investments (99.0%)
(Cost $357,821,423)...................................................................... 371,728,839
Receivables less liabilities (1.0%)....................................................... 3,938,591
--------------
Net Assets (100.0%)....................................................................... $ 375,667,430
--------------
--------------
</TABLE>
(1) See Note 1 of Notes to Financial Statements.
The accompanying notes are an integral part
of the financial statements.
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<TABLE>
<CAPTION>
Principal
December 31,1996 Amount Value(1)
------------- --------------
<S> <C> <C>
U.S. Treasury Note (1.7%)
6.500% 10/15/2006
(Cost $510,351).................................................................. $ 500,000 $ 503,170
--------------
Corporate Bonds (92.2%)
Basic Industry (7.2%)
Chemicals (2.5%)
Freeport-McMoRan Resource Partners L.P. Senior Subordinated Notes
8.750% 02/15/2004................................................................. 700,000 726,250
--------------
Forest Products (2.0%)
Stone Consolidated Corp.
Senior Secured Note
10.250% 12/15/2000................................................................. 550,000 585,750
--------------
Metals/Mining (2.7%)
Ryerson Tull, Inc.
Notes
8.500% 07/15/2001................................................................. 750,000 768,750
--------------
Total Basic Industry ................................................................. 2,080,750
--------------
Consumer Related (21.4%)
Hotel/Gaming (12.1%)
California Hotel Finance Corp.
Guaranteed Senior Subordinated Notes
11.000% 12/01/2002................................................................. 750,000 783,750
HMH Properties, Inc.
Senior Secured Note
9.500% 05/15/2005................................................................. 600,000 624,000
Harrahs Operating, Inc.
Senior Subordinated Notes
10.875% 04/15/2002................................................................. 500,000 527,500
La Quinta Inns, Inc.
Senior Subordinated Notes
9.250% 05/15/2003................................................................. 900,000 940,500
Station Casinos, Inc.
Senior Subordinated Notes
9.625% 06/01/2003................................................................. 615,000 605,775
--------------
3,481,525
--------------
Healthcare (7.0%)
Abbey Healthcare Group, Inc.
Senior Subordinated Notes
9.500% 11/01/2002................................................................. 500,000 522,500
HEALTHSOUTH Rehabilitation Corp.
Senior Subordinated Notes
9.500% 04/01/2001................................................................. 300,000 318,000
Quorum Health Group, Inc.
Senior Subordinated Notes
8.750% 11/01/2005................................................................. 500,000 512,500
<CAPTION>
Principal
Amount Value(1)
------------- --------------
<S> <C> <C>
<S> <C> <C>
Tenet Healthcare Corp.
Senior Subordinated Notes
10.125% 03/01/2005................................................................. $ 600,000 $ 664,500
--------------
2,017,500
--------------
Other (2.3%)
Westpoint Stevens, Inc.
Senior Subordinated Debenture
9.375% 12/15/2005................................................................. 650,000 669,500
--------------
Total Consumer Related ............................................................... 6,168,525
--------------
Energy (15.1%)
Global Marine, Inc.
Notes
12.750% 12/15/1999................................................................. 285,000 306,019
Gulf Canada Resources Ltd.
Subordinated Debentures
9.625% 07/01/2005................................................................. 500,000 541,250
Kelley Oil & Gas Corp. (144A)
Senior Subordinated Notes
10.375% 10/15/2006................................................................. 600,000 625,500
Louis Dreyfus Natural Gas Corp.
Senior Subordinated Notes
9.250% 06/15/2004................................................................. 500,000 532,825
Maxus Energy Corp.
Notes
9.875% 10/15/2002................................................................. 750,000 772,500
Noble Drilling Corp.
Senior Notes
9.250% 10/01/2003................................................................. 250,000 266,562
9.125% 07/01/2006................................................................. 300,000 322,500
Nuevo Energy Co.
Senior Subordinated Notes
9.500% 04/15/2006................................................................. 500,000 531,250
Santa Fe Energy Resource, Inc.
Senior Subordinated Debentures
11.000% 05/15/2004................................................................. 400,000 440,000
--------------
Total Energy ......................................................................... 4,338,406
--------------
Housing Related (1.9%)
USG Corp.
Series B Senior Notes
9.250% 09/15/2001................................................................. 500,000 532,500
--------------
Manufacturing (15.9%)
American Standard, Inc.
Senior Subordinated Discount
Debenture Step-Up Coupon
0.000% to 06/01/1998, then 10.500% to 06/01/2005.................................. 750,000 697,500
</TABLE>
-
59
<PAGE>
SCHEDULE OF INVESTMENTS
-----------------------------------------------------------------
[LOGO]
- ------------------------ ------------------------
-- COLUMBIA HIGH YIELD FUND, INC. --
------------------------------------
<TABLE>
<CAPTION>
Principal
Amount Value(1)
------------- --------------
<S> <C> <C>
</TABLE>
Corporate Bonds (Continued)
<TABLE>
<S> <C> <C>
Exide Corp.
Senior Notes
10.000% 04/15/2005................................................................. $ 350,000 $ 363,125
Mark IV Industries, Inc.
Senior Subordinated Notes
7.750% 04/01/2006................................................................. 500,000 486,765
Owens-Illinois, Inc.
Senior Subordinated Notes
10.000% 08/01/2002................................................................. 400,000 418,000
Rohr, Inc.
Senior Note
11.625% 05/15/2003................................................................. 600,000 661,500
SPX Corp.
Senior Subordinated Notes
11.750% 06/01/2002................................................................. 500,000 558,750
U.S. Can Corp. (144A)
Senior Subordinated Notes
10.125% 10/15/2006................................................................. 700,000 735,875
Wolverine Tube, Inc.
Senior Subordinated Notes
10.125% 09/01/2002................................................................. 625,000 662,500
--------------
Total Manufacturing .................................................................. 4,584,015
--------------
Media (19.6%)
American Radio Systems Corp.
Senior Subordinated Notes
9.000% 02/01/2006................................................................. 500,000 490,000
Heritage Media Corp.
Senior Subordinated Notes
8.750% 02/15/2006................................................................. 500,000 480,000
Jones Intercable, Inc.
Senior Notes
9.625% 03/15/2002................................................................. 350,000 367,500
Lenfest Communications, Inc.
Senior Secured Notes
8.375% 11/01/2005................................................................. 500,000 483,125
Rogers Communications, Inc.
Debenture
10.875% 04/15/2004................................................................. 450,000 472,500
SFX Broadcasting, Inc.
Series B Senior Subordinated Notes
10.750% 05/15/2006................................................................. 500,000 527,500
Time Warner, Inc.
Debentures
9.125% 01/15/2013................................................................. 900,000 982,530
<CAPTION>
Principal
Amount Value(1)
------------- --------------
<S> <C> <C>
<S> <C> <C>
United International Holdings, Inc.
Senior Note with Warrants
0.000% 11/15/1999................................................................. $ 650,000 $ 481,000
United International Holdings, Inc.
Senior Secured Discount Notes
0.000% 11/15/1999................................................................. 250,000 178,750
Viacom, Inc.
Subordinated Debenture
8.000% 07/07/2006................................................................. 650,000 628,875
Young Broadcasting, Inc.
Guaranteed Senior Subordinated Notes
11.750% 11/15/2004................................................................. 500,000 545,000
--------------
Total Media .......................................................................... 5,636,780
--------------
Retail (5.0%)
Supermarkets (1.0%)
Stop & Shop Cos., Inc.
Senior Subordinated Notes
9.750% 02/01/2002................................................................. 250,000 280,000
--------------
Other (4.0%)
Ethan Allen, Inc.
Senior Notes
8.750% 03/15/2001................................................................. 600,000 621,750
Federated Department Stores, Inc.
Senior Notes
10.000% 02/15/2001................................................................. 500,000 543,115
--------------
1,164,865
--------------
Total Retail ......................................................................... 1,444,865
--------------
Transportation ( 1.8%)
Air (1.8%)
Greenwich Air Services
Senior Notes
10.500% 06/01/2006................................................................. 500,000 532,500
--------------
Utility (4.3%)
Electrics (1.8%)
California Energy, Inc.
Senior Secured Note
9.875% 06/30/2003................................................................. 500,000 525,000
--------------
Telecommunications (2.5%)
MFS Communications, Inc.
Senior Discount Notes
Step-up Coupon
0.000% to 01/15/2001, then 8.875% to 01/15/2006................................... 1,000,000 727,500
--------------
</TABLE>
-
60
<PAGE>
SCHEDULE OF INVESTMENTS
-----------------------------------------------------------------
[LOGO]
- ------------------------ ------------------------
-- COLUMBIA HIGH YIELD FUND, INC. --
------------------------------------
<TABLE>
<CAPTION>
Principal
Amount Value(1)
------------- --------------
<S> <C> <C>
</TABLE>
Corporate Bonds (Continued)
<TABLE>
<S> <C> <C>
Total Utilities ...................................................................... $ 1,252,500
--------------
Total Corporate Bonds
(Cost $25,712,880) .................................................................. 26,570,841
--------------
Total investments, excluding temporary cash investment
(Cost $26,223,231) .................................................................. 27,074,011
Repurchase Agreement (3.6%)
Goldman Sachs Corp.
6.354% dated 12/31/1996,
due 01/02/1997 in the
amount of $1,021,979.
Collateralized by U.S. Treasury Bond
6.500% due 11/15/2026
(Cost $1,021,624) ................................................................... $ 1,021,624 1,021,624
--------------
Total Investments (97.5%)
(Cost $27,244,855)....................................................................... 28,095,635
Receivables less liabilities (2.5%)....................................................... 722,598
--------------
Net Assets (100.0%)....................................................................... $ 28,818,233
--------------
--------------
</TABLE>
(1) See Note 1 of Notes to Financial Statements.
The accompanying notes are an integral part
of the financial statements.
-
61
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
-----------------------------------------------------------------
<TABLE>
<CAPTION>
Columbia Columbia Columbia Columbia
Common Stock Growth International Stock Special
December 31, 1996 Fund, Inc. Fund, Inc. Fund, Inc. Fund, Inc.
------------ -------------- ------------------- --------------
<S> <C> <C> <C> <C>
ASSETS:
Investments at identified cost............................ $449,007,291 $ 870,008,781 $100,562,244 $1,399,532,531
- ------------------------------------------------------------ ------------ -------------- ------------------- --------------
Investments at value (Notes 1 and 2)...................... $509,895,400 $1,051,275,934 $117,205,362 $1,487,815,609
Temporary cash investments, at cost (Note 1).............. 22,288,098 8,042,960 10,517,742 117,419,890
Cash...................................................... 750,237
Cash denominated in foreign currencies (cost $343,300)
(Note 1)................................................. 343,352
Receivable for:
Interest................................................ 106,580 102,531 52,532 505,183
Dividends............................................... 897,108 1,429,875 72,160 534,852
Investments sold........................................ 20,147,541 740,686 7,884,279
Capital stock sold...................................... 6,085,300 1,491,367 148,913 2,043,165
Forward foreign currency exchange contract held, at
market (Note 1)........................................ 12,388,363
------------ -------------- ------------------- --------------
Total assets.............................................. 539,272,486 1,082,490,208 142,219,347 1,616,202,978
------------ -------------- ------------------- --------------
LIABILITIES:
Payable for:
Capital stock redeemed.................................. 907,454 12,227,741 612,343 4,080,533
Dividends and distributions............................. 1,178,012 5,283,449 175,591 15,781,001
Investments purchased................................... 3,540,999 9,522,737
Investment management fee (Note 4)...................... 269,939 535,125 104,360 1,132,655
Accrued expenses........................................ 157,279 344,374 93,148 401,838
Forward foreign currency exchange contract held (Note
1)..................................................... 12,183,315
------------ -------------- ------------------- --------------
Total liabilities......................................... 2,512,684 18,390,689 16,709,756 30,918,764
------------ -------------- ------------------- --------------
Net assets applicable to outstanding shares................. $536,759,802 $1,064,099,519 $125,509,591 $1,585,284,214
------------ -------------- ------------------- --------------
------------ -------------- ------------------- --------------
Net assets consist of:
Undistributed net investment income....................... $ 901,158 $ 1,931,709 $ 3,885
Unrealized appreciation on:
Investments............................................. 60,888,109 181,267,153 16,643,118 $ 88,283,078
Translation of assets and liabilities in foreign
currencies............................................. 191,667
Undistributed net realized gain (loss) from:
Investments............................................. 58,387 (945,685) (605,416) (829,577)
Foreign currency transactions........................... (205,048)
Capital shares (Note 3)................................... 346,125 798,613
Capital paid in (Note 3).................................. 474,912,148 881,500,217 109,481,385 1,497,032,100
------------ -------------- ------------------- --------------
$536,759,802 $1,064,099,519 $125,509,591 $1,585,284,214
------------ -------------- ------------------- --------------
------------ -------------- ------------------- --------------
Shares of capital stock outstanding (Note 3)................ 27,863,379 34,612,452 9,052,917 79,861,296
------------ -------------- ------------------- --------------
------------ -------------- ------------------- --------------
Net asset value, offering and redemption price per share
(1)........................................................ $ 19.26 $ 30.74 $ 13.86 $ 19.85
------------ -------------- ------------------- --------------
------------ -------------- ------------------- --------------
</TABLE>
(1) The net asset value per share is computed by dividing net assets applicable
to outstanding shares by shares of capital stock outstanding.
The accompanying notes are an integral part of the financial statements.
-
62
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
-----------------------------------------------------------------
<TABLE>
<CAPTION>
Columbia Columbia Real Columbia Columbia
Small Cap Estate Equity Balanced Daily Income
December 31, 1996 Fund, Inc. Fund, Inc. Fund, Inc. Company
------------ -------------- -------------- -------------------
<S> <C> <C> <C> <C>
ASSETS:
Investments at identified cost............................ $ 17,721,718 $ 45,246,073 $ 577,068,626 $902,058,747
- ------------------------------------------------------------ ------------ -------------- -------------- -------------------
Investments at value (Notes 1 and 2)...................... $ 19,204,712 $ 56,150,905 $ 633,117,994 $902,058,747
Temporary cash investments, at cost (Note 1).............. 2,553,184 12,032,191 36,727,709
Cash...................................................... 1,050,000
Receivable for:
Interest................................................ 9,869 28,888 4,321,207 10,546
Dividends............................................... 2,326 403,359 543,981
Investments sold........................................ 233,580(2) 250,664 925
Capital stock sold...................................... 638,824 1,070,020 1,058,658 2,784,548
------------ -------------- -------------- -------------------
Total assets.............................................. 22,642,495 69,936,027 675,770,474 905,903,841
------------ -------------- -------------- -------------------
LIABILITIES:
Payable for:
Capital stock redeemed.................................. 6,852 1,283,594 2,487,194 15,334,999
Dividends and distributions............................. 510,674 187,575
Investments purchased................................... 7,425
Securities sold short against the box, at market
(Proceeds $1,542,415) (Note 1)......................... 1,536,656
Investment management fee (Note 4)...................... 16,013 38,155 285,975 357,309
Accrued expenses........................................ 14,179 30,383 216,810 411,564
------------ -------------- -------------- -------------------
Total liabilities......................................... 1,581,125 1,862,806 3,177,554 16,103,872
------------ -------------- -------------- -------------------
Net assets applicable to outstanding shares................. $ 21,061,370 $ 68,073,221 $ 672,592,920 $889,799,969
------------ -------------- -------------- -------------------
------------ -------------- -------------- -------------------
Net assets consist of:
Undistributed net investment income (loss)................ $ (126) $ 540,163
Unrealized appreciation on investments.................... 1,488,753 $ 10,904,832 56,049,368
Undistributed net realized loss from investments.......... (275,796) (40,917 ) (76,478)
Capital shares (Note 3)................................... $ 889,800
Capital paid in (Note 3).................................. 19,848,539 57,209,306 616,079,867 888,910,169
------------ -------------- -------------- -------------------
$ 21,061,370 $ 68,073,221 $ 672,592,920 $889,799,969
------------ -------------- -------------- -------------------
------------ -------------- -------------- -------------------
Shares of capital stock outstanding (Note 3)................ 1,620,781 4,213,056 33,105,142 889,799,969
------------ -------------- -------------- -------------------
------------ -------------- -------------- -------------------
Net asset value, offering and redemption price per share
(1)........................................................ $ 12.99 $ 16.16 $ 20.32 $ 1.00
------------ -------------- -------------- -------------------
------------ -------------- -------------- -------------------
</TABLE>
(1) The net asset value per share is computed by dividing net assets applicable
to outstanding shares by shares of capital stock outstanding.
(2) Receivable from broker for securites sold short against the box.
The accompanying notes are an integral part of the financial statements.
-
63
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
-----------------------------------------------------------------
<TABLE>
<CAPTION>
Columbia
U.S. Columbia Fixed
Government Income Columbia Columbia
Securities Securities Municipal Bond High Yield
December 31, 1996 Fund, Inc. Fund, Inc. Fund, Inc. Fund, Inc.
------------ -------------- -------------- -------------------
<S> <C> <C> <C> <C>
ASSETS:
Investments at identified cost............................ $40,519,829 $337,752,702 $ 353,382,696 $ 26,223,231
- ------------------------------------------------------------ ------------ -------------- -------------- -------------------
Investments at value (Notes 1 and 2)...................... $40,547,016 $339,758,146 $ 367,290,112 $ 27,074,011
Temporary cash investments, at cost (Note 1).............. 351,070 13,097,375 4,438,727 1,021,624
Receivable for:
Interest................................................ 589,129 4,364,313 5,036,835 536,459
Investments sold........................................ 2,034,745
Capital stock sold...................................... 95,205 457,658 18,962 255,748
------------ -------------- -------------- -------------------
Total assets.............................................. 41,582,420 359,712,237 376,784,636 28,887,842
------------ -------------- -------------- -------------------
LIABILITIES:
Payable for:
Capital stock redeemed.................................. 743,115 526,128 466,486 27,676
Dividends and distributions............................. 13,145 358,353 438,413 18,099
Investments purchased................................... 2,081,329
Investment management fee (Note 4)...................... 17,575 151,721 159,580 14,468
Accrued expenses........................................ 32,244 173,810 52,727 9,366
------------ -------------- -------------- -------------------
Total liabilities......................................... 806,079 3,291,341 1,117,206 69,609
------------ -------------- -------------- -------------------
Net assets applicable to outstanding shares................. $40,776,341 $356,420,896 $ 375,667,430 $ 28,818,233
------------ -------------- -------------- -------------------
------------ -------------- -------------- -------------------
Net assets consist of:
Unrealized appreciation on investments.................... $ 27,187 $ 2,005,444 $ 13,907,416 $ 850,780
Undistributed net realized gain (loss) from investments... (396,302 ) (1,902,567 ) 149,182 18,680
Capital shares (Note 3)................................... 49,466 272,494 309,317
Capital paid in (Note 3).................................. 41,095,990 356,045,525 361,301,515 27,948,773
------------ -------------- -------------- -------------------
$40,776,341 $356,420,896 $ 375,667,430 $ 28,818,233
------------ -------------- -------------- -------------------
------------ -------------- -------------- -------------------
Shares of capital stock outstanding (Note 3)................ 4,946,608 27,249,412 30,931,729 2,900,034
------------ -------------- -------------- -------------------
------------ -------------- -------------- -------------------
Net asset value, offering and redemption price per share
(1)........................................................ $ 8.24 $ 13.08 $ 12.15 $ 9.94(2)
------------ -------------- -------------- -------------------
------------ -------------- -------------- -------------------
</TABLE>
(1) The net asset value per share is computed by dividing net assets applicable
to outstanding shares by shares of capital stock outstanding.
(2) Shares of Columbia High Yield Fund held less than one year, other than
shares acquired through the reinvestment of dividends and capital gains,
were redeemed at 99% of the net asset value.
The accompanying notes are an integral part of the financial statements.
-
64
<PAGE>
STATEMENTS OF OPERATIONS
-----------------------------------------------------------------
<TABLE>
<CAPTION>
Columbia
Columbia Columbia International Columbia
Common Stock Growth Fund, Stock Fund, Special
Year Ended December 31, 1996 Fund, Inc. Inc. Inc. Fund, Inc.
------------ ------------ --------------- ------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Income:
Interest........................................... $ 468,218 $ 1,098,763 $ 376,245 $ 4,581,166
Dividends.......................................... 8,813,867 11,761,529 1,888,543 5,440,648
Foreign taxes withheld (net of reclaims)........... (237,521)
------------ ------------ --------------- ------------
Total income..................................... 9,282,085 12,860,292 2,027,267 10,021,814
------------ ------------ --------------- ------------
Expenses:
Investment management fees (Note 4)................ 2,686,585 5,711,080 1,157,227 12,880,541
Shareholder servicing costs (Note 4)............... 416,842 596,257 213,139 879,795
Reports to shareholders............................ 88,004 252,822 74,386 310,019
Accounting expense................................. 40,694 36,657 90,928 53,873
Financial information and subscriptions............ 6,112 16,742 11,137 25,173
Custodian fees..................................... 18,098 38,896 115,353 62,191
Bank transaction and checking fees................. 20,361 29,732 45,242 83,129
Registration fees.................................. 80,780 90,437 27,836 139,998
Legal, insurance and auditing fees................. 33,401 44,704 32,225 55,194
Other.............................................. 6,007 15,225 5,128 19,404
------------ ------------ --------------- ------------
Total expenses................................... 3,396,884 6,832,552 1,772,601 14,509,317
------------ ------------ --------------- ------------
Net investment income (loss) (Note 1)................ 5,885,201 6,027,740 254,666 (4,487,503)
------------ ------------ --------------- ------------
Realized gain and unrealized appreciation
(depreciation) from investment and foreign currency
transactions:
Net realized gain from:
Investments (Note 2)............................... 70,666,274 154,006,111 9,808,805 295,204,950
Foreign currency transactions (Note 1)............. 1,454,573
------------ ------------ --------------- ------------
Net realized gain................................ 70,666,274 154,006,111 11,263,378 295,204,950
------------ ------------ --------------- ------------
Net unrealized appreciation (depreciation) on:
Investments (Note 1)............................... 8,532,253 21,295,845 5,676,201 (112,950,905)
Translation of assets and liabilities in foreign
currencies (Note 1)............................... 185,947
------------ ------------ --------------- ------------
Net unrealized appreciation (depreciation) during
the period...................................... 8,532,253 21,295,845 5,862,148 (112,950,905)
------------ ------------ --------------- ------------
Net gain on investment and foreign currency
transactions (Note 1)............................... 79,198,527 175,301,956 17,125,526 182,254,045
------------ ------------ --------------- ------------
Net increase in net assets resulting from
operations.......................................... $85,083,728 $181,329,696 $17,380,192 $177,766,542
------------ ------------ --------------- ------------
------------ ------------ --------------- ------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
-
65
<PAGE>
STATEMENTS OF OPERATIONS
-----------------------------------------------------------------
<TABLE>
<CAPTION>
Columbia Columbia
Small Cap Real Estate Columbia Columbia
Fund, Inc. Equity Fund, Balanced Daily Income
Year Ended December 31, 1996 (1) Inc. Fund, Inc. Company
------------- ---------------- ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Income:
Interest................................................ $ 59,758 $ 169,463 $ 20,230,059 $45,503,712
Dividends............................................... 6,758 2,162,179 5,822,671
------------- ---------------- ------------ ------------
Total income.......................................... 66,516 2,331,642 26,052,730 45,503,712
------------- ---------------- ------------ ------------
Expenses:
Investment management fees (Note 4)..................... 40,273 232,413 2,935,512 4,009,904
Shareholder servicing costs (Note 4).................... 3,760 24,340 504,889 698,755
Reports to shareholders................................. 3,185 11,782 120,872 175,053
Accounting expense...................................... 3,847 20,447 51,793 59,611
Financial information and subscriptions................. 1,447 17,266 16,110
Custodian fees.......................................... 181 1,619 23,447 33,210
Bank transaction and checking fees...................... 4,669 4,225 34,050 90,461
Registration fees....................................... 6,914 22,872 85,660 64,379
Legal, insurance and auditing fees...................... 426 17,002 38,374 41,972
Other................................................... 3,387 1,479 8,903 11,143
------------- ---------------- ------------ ------------
Total expenses........................................ 66,642 337,626 3,820,766 5,200,598
------------- ---------------- ------------ ------------
Net investment income (loss) (Note 1)..................... (126) 1,994,016 22,231,964 40,303,114
------------- ---------------- ------------ ------------
Realized gain (loss) and unrealized appreciation from
investment transactions:
Net realized gain (loss) from investments (Note 2)........ (275,796) 1,627,328 41,189,499
Net unrealized appreciation on investments during the
period (Note 1).......................................... 1,488,753 9,368,906 4,167,518
------------- ---------------- ------------
Net gain on investments (Note 1).......................... 1,212,957 10,996,234 45,357,017
------------- ---------------- ------------ ------------
Net increase in net assets resulting from operations...... $ 1,212,831 $ 12,990,250 $ 67,588,981 $40,303,114
------------- ---------------- ------------ ------------
------------- ---------------- ------------ ------------
</TABLE>
(1) From inception of operations on September 11, 1996.
The accompanying notes are an integral part of the financial statements.
-
66
<PAGE>
STATEMENTS OF OPERATIONS
-----------------------------------------------------------------
<TABLE>
<CAPTION>
Columbia U.S.
Government Columbia Fixed Columbia
Securities Income Securities Municipal Bond
Year Ended December 31, 1996 Fund, Inc. Fund, Inc. Fund, Inc.
----------------- ----------------- --------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Income:
Interest..................................................... $ 2,388,412 $ 23,974,914 $ 20,956,147
----------------- ----------------- --------------
Total income............................................... 2,388,412 23,974,914 20,956,147
----------------- ----------------- --------------
Expenses:
Investment management fees (Note 4).......................... 206,591 1,668,004 1,881,542
Shareholder servicing costs (Note 4)......................... 49,592 217,935 83,089
Reports to shareholders...................................... 13,406 84,134 26,442
Accounting expense........................................... 20,814 44,826 22,214
Financial information and subscriptions...................... 1,230 14,585 41,426
Custodian fees............................................... 1,961 13,248 14,803
Bank transaction and checking fees........................... 2,177 24,984 4,694
Registration fees............................................ 12,741 42,303 6,336
Legal, insurance and auditing fees........................... 21,173 36,708 33,351
Other........................................................ 626 4,703 4,668
----------------- ----------------- --------------
330,311 2,151,430 2,118,565
Expenses reimbursed by investment advisor....................
----------------- ----------------- --------------
Total expenses............................................. 330,311 2,151,430 2,118,565
----------------- ----------------- --------------
Net investment income (Note 1)................................. 2,058,101 21,823,484 18,837,582
----------------- ----------------- --------------
Realized gain and unrealized depreciation from investment
transactions:
Net realized gain from investments (Note 2).................... 83,457 1,600,093 1,991,804
Net unrealized depreciation on investments during the period
(Note 1)...................................................... (584,568) (11,107,884) (7,232,960)
----------------- ----------------- --------------
Net gain (loss) on investments (Note 1)........................ (501,111) (9,507,791) (5,241,156)
----------------- ----------------- --------------
Net increase in net assets resulting from operations........... $ 1,556,990 $ 12,315,693 $ 13,596,426
----------------- ----------------- --------------
----------------- ----------------- --------------
<CAPTION>
Columbia
High Yield
Year Ended December 31, 1996 Fund, Inc.
----------
<S> <C>
INVESTMENT INCOME:
Income:
Interest..................................................... $2,319,495
----------
Total income............................................... 2,319,495
----------
Expenses:
Investment management fees (Note 4).......................... 150,432
Shareholder servicing costs (Note 4)......................... 21,639
Reports to shareholders...................................... 9,355
Accounting expense........................................... 30,477
Financial information and subscriptions...................... 3,651
Custodian fees............................................... 969
Bank transaction and checking fees........................... 1,971
Registration fees............................................ 12,976
Legal, insurance and auditing fees........................... 18,564
Other........................................................ 375
----------
250,409
Expenses reimbursed by investment advisor.................... (15,476 )
----------
Total expenses............................................. 234,933
----------
Net investment income (Note 1)................................. 2,084,562
----------
Realized gain and unrealized depreciation from investment
transactions:
Net realized gain from investments (Note 2).................... 237,862
Net unrealized depreciation on investments during the period
(Note 1)...................................................... (1,892 )
----------
Net gain (loss) on investments (Note 1)........................ 235,970
----------
Net increase in net assets resulting from operations........... $2,320,532
----------
----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
-
67
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
-----------------------------------------------------------------
<TABLE>
<CAPTION>
Columbia Columbia Columbia
Common Stock Fund, Inc. Growth International Stock Fund,
Years Ended December 31, Fund, Inc. Inc.
-------------------------- ---------------------------- --------------------------
1996 1995 1996 1995 1996 1995
------------ ------------ ------------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income................... $ 5,885,201 $ 3,997,419 $ 6,027,740 $ 8,173,000 $ 254,666 $ 155,031
Net realized gain (loss) from:
Investments (Note 2).................. 70,666,274 17,260,066 154,006,111 73,961,335 9,808,805 (286,889)
Foreign currency transactions (Note
1)................................... 1,454,573 (1,246,443)
Change in net unrealized appreciation
on:
Investments........................... 8,532,253 44,119,110 21,295,845 120,496,613 5,676,201 5,614,702
Translation of assets and liabilities
in foreign currencies (Note 1)....... 185,947 92
------------ ------------ ------------- ------------ ------------ ------------
Net increase in net assets resulting
from operations........................ 85,083,728 65,376,595 181,329,696 202,630,948 17,380,192 4,236,493
Distributions to shareholders:
From net investment income.............. (5,169,680) (3,764,094) (5,089,302) (7,437,014) (254,666)
In excess of net investment income...... (24,695)* (31,322)* (1,646,464)*
From net realized gain from investment
transactions........................... (70,666,274) (17,260,066) (154,006,111) (73,961,335) (9,422,995)
In excess of net realized gain from
investment transactions................ (97,665)* (17,932)* (469,156)* (206,957)*
Capital share transactions, net (Note
3)....................................... 169,111,664 189,924,932 193,603,540 136,042,951 18,580,064 (21,847,478)
------------ ------------ ------------- ------------ ------------ ------------
Net increase (decrease) in net assets... 178,237,078 234,259,435 215,368,667 257,037,271 24,636,131 (17,610,985)
NET ASSETS:
Beginning of period....................... 358,522,724 124,263,289 848,730,852 591,693,581 100,873,460 118,484,445
------------ ------------ ------------- ------------ ------------ ------------
End of period (1)......................... $536,759,802 $358,522,724 $1,064,099,519 $848,730,852 $125,509,591 $100,873,460
------------ ------------ ------------- ------------ ------------ ------------
------------ ------------ ------------- ------------ ------------ ------------
- --------------------------------------------
------------ ------------ ------------- ------------ ------------ ------------
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
(1) Includes undistributed net investment
income of: $ 901,158 $ 395,967 $ 1,931,709 $ 1,523,877 $ 3,885 $ --
* On a tax basis, there was no return of capital.
</TABLE>
The accompanying notes are an integral part of the financial statements.
-
68
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
-----------------------------------------------------------------
<TABLE>
<CAPTION>
Columbia Columbia Columbia
Special Small Cap Real Estate Equity
Years Ended December 31, Fund, Inc. Fund, Inc. Fund, Inc.
-------------------------- ------------- --------------------------
1996 1995 1996 (2) 1996 1995
------------ ------------ ------------- ------------ ------------
<S> <C> <C> <C> <C> <C>
INCREASE IN NET ASSETS:
Operations:
Net investment income (loss)............ $ (4,487,503) $ 1,828,234 $ (126) $ 1,994,016 $ 1,240,072
Net realized gain (loss) from
investments (Note 2)................... 295,204,950 154,437,430 (275,796) 1,627,328 (132)
Change in net unrealized appreciation
(depreciation) on investments.......... (112,950,905) 148,707,165 1,488,753 9,368,906 1,834,154
------------ ------------ ------------- ------------ ------------
Net increase in net assets resulting
from operations........................ 177,766,542 304,972,829 1,212,831 12,990,250 3,074,094
Distributions to shareholders:
From net investment income.............. (1,151,123) (1,370,203) (774,447)
From net realized gain from investment
transactions........................... (289,460,071) (154,437,430) (1,627,328)
In excess of net realized gain from
investment transactions................ (1,539,578)* (349,207)* (235,252)*
From tax return of capital.............. (657,602) (451,668)
Capital share transactions, net (Note
3)....................................... 312,562,708 347,044,146 19,848,539 37,500,111 2,572,289
------------ ------------ ------------- ------------ ------------
Net increase in net assets.............. 200,869,179 494,888,844 21,061,370 46,486,021 4,185,016
NET ASSETS:
Beginning of period....................... 1,384,415,035 889,526,191 21,587,200 17,402,184
------------ ------------ ------------- ------------ ------------
End of period (1)......................... $1,585,284,214 $1,384,415,035 $ 21,061,370 $ 68,073,221 $ 21,587,200
------------ ------------ ------------- ------------ ------------
------------ ------------ ------------- ------------ ------------
- --------------------------------------------
------------ ------------ ------------- ------------ ------------
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C>
(1) Includes undistributed net investment
income (loss) of: $ -- $ (51,817) $ (126) $ -- $ 2,476
(2) From inception of operations on
September 11, 1996.
* On a tax basis, there was no return of capital.
</TABLE>
The accompanying notes are an integral part of the financial statements.
-
69
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
-----------------------------------------------------------------
<TABLE>
<CAPTION>
Columbia Columbia Columbia
Balanced Daily Income U.S. Government
Years Ended December 31, Fund, Inc. Company Securities Fund, Inc.
-------------------------- ---------------------------- --------------------------
1996 1995 1996 1995 1996 1995
------------ ------------ ------------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income................... $ 22,231,964 $ 15,015,481 $ 40,303,114 $ 39,894,755 $ 2,058,101 $ 2,036,453
Net realized gain from investments (Note
2)..................................... 41,189,499 20,555,403 83,457 571,638
Change in net unrealized appreciation
(depreciation) on investments.......... 4,167,518 47,270,141 (584,568) 1,000,875
------------ ------------ ------------- ------------ ------------ ------------
Net increase in net assets resulting
from operations........................ 67,588,981 82,841,025 40,303,114 39,894,755 1,556,990 3,608,966
Distributions to shareholders:
From net investment income.............. (21,892,044) (14,812,967) (40,303,114) (39,894,755) (2,058,101) (2,036,453)
In excess of net investment income...... (124,615)* (46,117)*
From net realized gain from investment
transactions........................... (41,189,499) (17,052,999)
In excess of net realized gain from
investment transaction................. (97,205)*
Capital share transactions, net (Note
3)....................................... 181,539,809 186,168,310 89,144,447 70,588,520 (564,932) 6,758,002
------------ ------------ ------------- ------------ ------------ ------------
Net increase (decrease) in net assets... 185,825,427 237,097,252 89,144,447 70,588,520 (1,066,043) 8,330,515
NET ASSETS:
Beginning of period....................... 486,767,493 249,670,241 800,655,522 730,067,002 41,842,384 33,511,869
------------ ------------ ------------- ------------ ------------ ------------
End of period (1)......................... $672,592,920 $486,767,493 $ 889,799,969 $800,655,522 $ 40,776,341 $ 41,842,384
------------ ------------ ------------- ------------ ------------ ------------
------------ ------------ ------------- ------------ ------------ ------------
- --------------------------------------------
------------ ------------ ------------- ------------ ------------ ------------
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
(1) Includes undistributed net investment
income of: $ 540,163 $ 211,082
* On a tax basis, there was no return of capital.
</TABLE>
The accompanying notes are an integral part of the financial statements.
-
70
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
-----------------------------------------------------------------
<TABLE>
<CAPTION>
Columbia Columbia Columbia
Fixed Income Securities Municipal Bond High Yield
Years Ended December 31, Fund, Inc. Fund, Inc. Fund, Inc.
-------------------------- ---------------------------- --------------------------
1996 1995 1996 1995 1996 1995
------------ ------------ ------------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income................... $ 21,823,484 $ 19,285,757 $ 18,837,582 $ 19,222,924 $ 2,084,562 $ 1,561,271
Net realized gain (loss) from
investments (Note 2)................... 1,600,093 7,333,401 1,991,804 2,099,378 237,862 (31,194)
Change in net unrealized appreciation
(depreciation) on investments.......... (11,107,884) 22,005,760 (7,232,960) 27,002,836 (1,892) 1,544,937
------------ ------------ ------------- ------------ ------------ ------------
Net increase in net assets resulting
from operations........................ 12,315,693 48,624,918 13,596,426 48,325,138 2,320,532 3,075,014
Distributions to shareholders:
From net investment income.............. (21,823,484) (19,285,757) (18,837,582) (19,222,924) (2,084,562) (1,561,271)
From net realized gain from investment
transactions........................... (1,842,655) (2,099,378) (28,544)
In excess of net realized gain from
investment transactions................ (52,790)*
Capital share transactions, net (Note
3)....................................... 49,669,884 34,830,059 (1,044,677) 17,029,241 5,139,840 9,123,656
------------ ------------ ------------- ------------ ------------ ------------
Net increase (decrease) in net assets... 40,162,093 64,169,220 (8,128,488) 43,979,287 5,347,266 10,637,399
NET ASSETS:
Beginning of period....................... 316,258,803 252,089,583 383,795,918 339,816,631 23,470,967 12,833,568
------------ ------------ ------------- ------------ ------------ ------------
End of period............................. $356,420,896 $316,258,803 $ 375,667,430 $383,795,918 $ 28,818,233 $ 23,470,967
------------ ------------ ------------- ------------ ------------ ------------
------------ ------------ ------------- ------------ ------------ ------------
* On a tax basis, there was no return of capital.
</TABLE>
The accompanying notes are an integral part of the financial statements.
-
71
<PAGE>
NOTES TO FINANCIAL STATEMENTS
-----------------------------------------------------------------
-- 1. SIGNIFICANT ACCOUNTING POLICIES --
The Columbia Funds (the Funds) consist of Columbia Common Stock Fund, Inc.
(CCSF), Columbia Growth Fund, Inc. (CGF), Columbia International Stock Fund,
Inc. (CISF), Columbia Special Fund, Inc. (CSF), Columbia Small Cap Fund, Inc.
(CSCF), Columbia Real Estate Equity Fund, Inc. (CREF), Columbia Balanced Fund,
Inc. (CBF), Columbia Daily Income Company (CDIC), Columbia U.S. Government
Securities Fund, Inc. (CUSG), Columbia Fixed Income Securities Fund, Inc.
(CFIS), Columbia Municipal Bond Fund, Inc. (CMBF), and Columbia High Yield Fund,
Inc. (CHYF). All Funds are open-end investment companies registered under the
Investment Company Act of 1940, as amended, and are diversified except CMBF,
which is non-diversified. The policies described below are consistently followed
by the Funds in the preparation of their financial statements in conformity with
generally accepted accounting principles.
Investment valuation. The values of CCSF, CGF, CISF, CSF, CSCF, CREF and CBF
equity investments are based on the last sale prices reported by the principal
securities exchanges on which the investments are traded, or, in the absence of
recorded sales, at the closing bid prices on such exchanges or over-the-counter
markets. Temporary cash investments in short-term securities (principally
repurchase agreements) are valued at cost, which approximates market.
CDIC investments are carried at values deemed best to reflect their fair values
as determined in good faith by or under the supervision of officers of CDIC
specifically so authorized by its Directors. These values are based on cost
adjusted for amortization of discount or premium and accrued interest, unless
unusual circumstances indicate that another method of determining fair value
should be considered.
CBF, CUSG, CFIS, CMBF and CHYF fixed income investments are carried at values
deemed best to reflect their fair values as determined in good faith by or under
the supervision of officers of CBF, CUSG, CFIS, CMBF and CHYF, specifically so
authorized by their Directors. These values are based on market value as quoted
by dealers who are market makers in these securities or by an independent
pricing service unless unusual circumstances indicate that another method of
determining fair value should be considered. Market values for CBF, CUSG, CFIS
and CHYF fixed income investments are based on the average of bid and ask prices
and market value for CMBF is based on bid prices, or by reference to other
securities with comparable ratings, interest rates and maturities. Temporary
cash investments in short-term securities (principally repurchase agreements)
are valued at cost, which approximates market.
Short sales against the box. Certain funds may hedge their investments against
changes in value by engaging in short sales against the box. In a short sale
against the box, the Fund sells a borrowed security that it also owns or has a
right to own without additional cash consideration. The Fund covers its
obligation to pay back the borrowed shares by depositing the identical
securities sold short in a segregated account at the Fund's custodian bank until
the short sale transaction is closed and the borrowed shares repaid. A short
sale against the box is not a speculative transaction and does not involve the
use of leverage. This type of short sale may be used by a Fund when it desires
to protect a profit or prevent a loss in a security position without selling the
security directly. CSCF sold certain securities short against the box in the
fourth quarter of 1996 because it was undesirable under provisions of the
Internal Revenue Code that apply to investment companies to sell those
securities directly and realize a taxable gain during the quarter. The market
value of segregated securities to cover short positions was $1,536,656 at
December 31, 1996. As of December 31, 1996, CSCF had entered into the following
short sales which resulted in net unrealized appreciation of $5,759.
-
72
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
-- 1. SIGNIFICANT ACCOUNTING POLICIES, CONTINUED --
<TABLE>
<CAPTION>
Issuer Shares Value
- ------------------------------ --------- ---------
Altera Corp. 1,900 $ 138,106
<S> <C> <C>
American Power Conversion
Corp. 7,300 198,925
ANADIGICS, Inc. 5,000 196,250
Dreco Energy Services Ltd.
(Class A) 6,000 219,750
Metzler Group, Inc. 7,000 222,250
National-Oilwell, Inc. 9,000 276,750
P J America, Inc. 10,000 180,000
Shiva Corp. 3,000 104,625
---------
Total securities sold
short $1,536,656
---------
---------
</TABLE>
Forward foreign currency exchange contracts. In connection with portfolio
purchases and sales of securities denominated in a foreign currency, CISF enters
into foreign currency exchange contracts (contracts). Additionally, CISF enters
into forward contracts to hedge certain other foreign currency denominated
assets. Contracts are recorded at market value. CISF could be exposed to risks
if counterparties to the contracts are unable to meet the terms of their
contracts or if the value of the foreign currency changes unfavorably. The
effect of any change in the value of a hedged foreign currency would be offset
by the increase (resulting from a change in exchange rates) in value of the
securities denominated in that currency. Net realized gains arising from such
transactions amounted to $1,393,253 and are included in net realized gain from
foreign currency transactions. As of December 31, 1996, CISF had entered into
the following forward contract resulting in net unrealized appreciation of
$205,048.
<TABLE>
<CAPTION>
Net
Unrealized
Currency to Currency to Settlement Appreciation
be Delivered be Received Date (U.S. $)
- ------------------------- --------------------- ---------- -----------
Japanese U.S.
1,401,000,000 Yen 12,388,363 Dollars 02/28/1997 $ 205,048
<C> <S> <C> <C> <C> <C>
</TABLE>
Foreign currency translations. The books and records of CISF are maintained in
U.S. dollars. Foreign currency transactions are translated into U.S. dollars on
the following basis:
(i) market value of investment securities, other assets, and liabilities at
the daily rates of exchange, and
(ii) purchases and sales of investment securities, dividend and interest
income and certain expenses at the rates of exchange prevailing on the
respective dates of such transactions.
CISF does not isolate that portion of the results of operations resulting from
changes in foreign exchange rates on investments from the fluctuations arising
from changes in market prices of securities held. Such fluctuations are included
with the net realized and unrealized gain or loss from investments.
Reported net realized foreign exchange gains or losses arise from sales and
maturities of short-term securities, sales of foreign currencies, currency gains
or losses realized between the trade and settlement dates on securities
transactions, and the difference between the amounts of dividends, interest, and
foreign withholding taxes recorded on CISF's books and the U.S. dollar
equivalent of the amounts actually received or paid. Net unrealized foreign
exchange gains and losses arise from changes in the value of assets and
liabilities, other than investments in securities, resulting from changes in the
exchange rates.
-
73
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
-- 1. SIGNIFICANT ACCOUNTING POLICIES, --
CONTINUED
Interest and dividend income. Interest income is recorded on the accrual basis
and dividend income is recorded on the ex-dividend date. The majority of
dividend income recorded by CREF is from Real Estate Investment Trusts (REITs).
For tax purposes, a portion of these dividends consist of capital gains and
return of capital. For financial reporting purposes, these dividends are
recorded as dividend income.
Shareholder distributions. CCSF, CREF and CBF distribute net investment income
quarterly and any net realized gains from investment transactions annually. CGF,
CISF, CSF and CSCF distribute net investment income and any net realized gains
annually. CDIC distributes its net investment income daily -- including any
realized investment gains or losses. CUSG, CFIS, CMBF and CHYF distribute their
net investment income monthly and any net realized gains annually. Distributions
to shareholders are recorded on the record date.
Income and capital gain distributions are determined in accordance with income
tax regulations which may differ from generally accepted accounting principles.
These differences are primarily due to differing treatments for foreign currency
transactions, net operating losses, deferral of losses from wash sales and
return of capital received from Real Estate Investment Trusts.
Use of estimates. The preparation of the financial statements in accordance
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosures of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.
Federal income taxes. The Funds have made no provision for federal income taxes
on net investment income or net realized gains from sales of securities, since
it is the intention of the Funds to comply with the provisions of the Internal
Revenue Code available to certain investment companies, and to make
distributions of income and security profits sufficient to relieve them from
substantially all federal income taxes.
As of December 31, 1996, certain Funds have capital loss carryovers available to
offset future capital gains as follows:
<TABLE>
<CAPTION>
Year Carryover Expires CSCF CUSG CFIS
- -------------------------- ----------- ----------- -------------
<S> <C> <C> <C>
2002...................... $396,302 $ 466,587
2003...................... 1,218,113
2004...................... $253,562
----------- ----------- -------------
$253,562 $396,302 $ 1,684,700
----------- ----------- -------------
----------- ----------- -------------
</TABLE>
Other. Investment transactions are accounted for on the date the investments
are purchased or sold. The cost of investments sold is determined by the use of
the specific identification method for both financial reporting and income tax
purposes. Realized gains and losses from investment transactions and unrealized
appreciation or depreciation of investments are reported on the basis of
identified costs. The Funds, through their custodians, receive delivery of
underlying securities collateralizing repurchase agreements (included in
temporary cash investments). Market values of these securities are required to
be at least 100% of the cost of the repurchase agreements. The Funds' investment
advisor determines that the value of the underlying securities is at all times
at least equal to the resale price. In the event of default or bankruptcy by the
other party to the agreement, realization and/or retention of the collateral may
be subject to legal proceedings.
-
74
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
-- 1. SIGNIFICANT ACCOUNTING POLICIES, CONTINUED --
CHYF invests in lower rated debt securities, which may be more susceptible to
adverse economic conditions than investment grade holdings. These securities are
often subordinated to the prior claims of other senior lenders, and
uncertainties exist as to an issuer's ability to meet principal and interest
payments. At December 31, 1996, 98% of the Fund's portfolio was invested in
securities rated Ba (49%) or B (49%) by Moody's Investor Services, Inc; the
remaining 2% of the portfolio was invested in a U.S. Treasury Note.
-- 2. INVESTMENT TRANSACTIONS --
Aggregate purchases, sales and maturities, net realized gain (loss) and
unrealized appreciation (depreciation) of investments, including temporary cash
investments for CDIC and excluding temporary cash investments for all other
Funds, as of and for the period ended December 31, 1996, were as follows:
<TABLE>
<CAPTION>
Columbia Common Columbia Columbia Columbia
Stock Fund, Inc. Growth International Stock Special Fund,
(CCSF) Fund, Inc. (CGF) Fund, Inc. (CISF) Inc. (CSF)
----------------- ---------------- ------------------- --------------
Purchases:
<S> <C> <C> <C> <C>
Investment securities other than U.S.
Government obligations.................... $563,762,616 $747,342,380 $143,417,703 $2,199,694,465
----------------- ---------------- ------------------- --------------
----------------- ---------------- ------------------- --------------
Sales and Maturities:
Investment securities other than U.S.
Government obligations.................... $486,671,781 $712,192,795 $139,433,310 $2,249,631,026
----------------- ---------------- ------------------- --------------
----------------- ---------------- ------------------- --------------
Net Realized Gain:
Investment securities other than U.S.
Government obligations.................... $ 70,666,274 $154,006,111 $ 9,808,805 $ 295,204,950
----------------- ---------------- ------------------- --------------
----------------- ---------------- ------------------- --------------
Unrealized Appreciation (Depreciation) as of
December 31, 1996:
Appreciation............................... $ 72,793,189 $219,974,948 $20,703,260 $ 192,223,656
Depreciation............................... (11,905,080) (38,707,795) (4,060,142) (103,940,578)
----------------- ---------------- ------------------- --------------
Net unrealized appreciation.............. $ 60,888,109 $181,267,153 $16,643,118 $ 88,283,078
----------------- ---------------- ------------------- --------------
----------------- ---------------- ------------------- --------------
Unrealized Appreciation (Depreciation) for
federal income tax purposes as of December
31, 1996:
Appreciation............................... $ 73,719,042 $220,991,033 $20,497,064 $ 191,811,939
Depreciation............................... (11,971,825) (39,023,528) (4,533,770) (104,657,499)
----------------- ---------------- ------------------- --------------
Net unrealized appreciation.............. $ 61,747,217 $181,967,505 $15,963,294 $ 87,154,440
----------------- ---------------- ------------------- --------------
----------------- ---------------- ------------------- --------------
For federal income tax purposes, the cost of
investments owned at December 31, 1996...... $448,148,183 $869,308,429 $101,242,068 $1,400,661,169
----------------- ---------------- ------------------- --------------
----------------- ---------------- ------------------- --------------
</TABLE>
The net realized gain for CCSF, CGF, and CSF includes proceeds of approximately
$28,000, $174,000, and $239,000, respectively, from shareholder class action
suits related to securities held by those Funds.
-
75
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
-- 2. INVESTMENT TRANSACTIONS, CONTINUED --
<TABLE>
<CAPTION>
Columbia
Columbia Real Estate Columbia
Small Cap Equity Balanced
Fund, Inc. (CSCF) Fund, Inc. (CREF) Fund, Inc. (CBF)
----------------- ----------------- ----------------
Purchases:
<S> <C> <C> <C>
Investment securities other than U.S. Government
obligations............................................... $19,101,824 $37,952,071 $388,776,058
U.S. Government obligations................................ 490,505,021
----------------- ----------------- ----------------
Total purchases.......................................... $19,101,824 $37,952,071 $879,281,079
----------------- ----------------- ----------------
----------------- ----------------- ----------------
Sales and Maturities:
Investment securities other than U.S. Government
obligations............................................... $ 1,104,310 $13,104,563 $355,321,321
U.S. Government obligations................................ 396,201,789
----------------- ----------------- ----------------
Total sales and maturities............................... $ 1,104,310 $13,104,563 $751,523,110
----------------- ----------------- ----------------
----------------- ----------------- ----------------
Net Realized Gain (Loss):
Investment securities other than U.S. Government
obligations............................................... $ (275,796) $ 1,627,328 $ 41,598,285
U.S. Government obligations................................ (408,786)
----------------- ----------------- ----------------
Total net realized gain (loss)........................... $ (275,796) $ 1,627,328 $ 41,189,499
----------------- ----------------- ----------------
----------------- ----------------- ----------------
Unrealized Appreciation (Depreciation) as of December 31,
1996:
Appreciation............................................... $ 2,120,026 $10,904,832 $ 62,499,171
Depreciation............................................... (631,273) (6,449,803)
----------------- ----------------- ----------------
Net unrealized appreciation.............................. $ 1,488,753 $10,904,832 $ 56,049,368
----------------- ----------------- ----------------
----------------- ----------------- ----------------
Unrealized Appreciation (Depreciation) for federal income tax
purposes as of December 31, 1996:
Appreciation............................................... $ 2,120,026 $11,637,608 $ 62,947,102
Depreciation............................................... (653,507) (6,462,594)
----------------- ----------------- ----------------
Net unrealized appreciation.............................. $ 1,466,519 $11,637,608 $ 56,484,508
----------------- ----------------- ----------------
----------------- ----------------- ----------------
For federal income tax purposes, the cost of investments
owned at December 31, 1996.................................. $17,743,952 $44,513,297 $576,633,486
----------------- ----------------- ----------------
----------------- ----------------- ----------------
<CAPTION>
Columbia
Daily Income
Company (CDIC)
--------------
Purchases:
<S> <C>
Investment securities other than U.S. Government
obligations............................................... $8,687,738,846
U.S. Government obligations................................ 120,383,333
--------------
Total purchases.......................................... $8,808,122,179
--------------
--------------
Sales and Maturities:
Investment securities other than U.S. Government
obligations............................................... $8,558,183,209
U.S. Government obligations................................ 154,900,694
--------------
Total sales and maturities............................... $8,713,083,903
--------------
--------------
Net Realized Gain (Loss):
Investment securities other than U.S. Government
obligations...............................................
U.S. Government obligations................................
Total net realized gain (loss)...........................
Unrealized Appreciation (Depreciation) as of December 31,
1996:
Appreciation...............................................
Depreciation...............................................
Net unrealized appreciation..............................
Unrealized Appreciation (Depreciation) for federal income tax
purposes as of December 31, 1996:
Appreciation...............................................
Depreciation...............................................
Net unrealized appreciation..............................
For federal income tax purposes, the cost of investments
owned at December 31, 1996.................................. $ 902,058,747
--------------
--------------
</TABLE>
The net realized gain for CBF includes proceeds of approximately $28,000, from
shareholder class action suits related to securities held by the Fund.
-
76
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
-- 2. INVESTMENT TRANSACTIONS, CONTINUED --
<TABLE>
<CAPTION>
Columbia U.S. Columbia Fixed Columbia
Government Securities Income Securities Municipal Bond
Fund, Inc. (CUSG) Fund, Inc. (CFIS) Fund, Inc. (CMBF)
--------------------- ----------------- -----------------
Purchases:
<S> <C> <C> <C>
Investment securities other than U.S. Government
obligations.......................................... $179,548,635 $ 70,008,274
U.S. Government obligations........................... $83,867,145 423,507,872
--------------------- ----------------- -----------------
Total purchases..................................... $83,867,145 $603,056,507 $ 70,008,274
--------------------- ----------------- -----------------
--------------------- ----------------- -----------------
Sales and Maturities:
Investment securities other than U.S. Government
obligations.......................................... $174,785,396 $ 72,420,445
U.S. Government obligations........................... $83,294,611 386,930,828
--------------------- ----------------- -----------------
Total sales and maturities.......................... $83,294,611 $561,716,224 $ 72,420,445
--------------------- ----------------- -----------------
--------------------- ----------------- -----------------
Net Realized Gain (loss):
Investment securities other than U.S. Government
obligations.......................................... $ 768,118 $ 1,991,804
U.S. Government obligations........................... $ 83,457 831,975
--------------------- ----------------- -----------------
Total net realized gain............................. $ 83,457 $ 1,600,093 $ 1,991,804
--------------------- ----------------- -----------------
--------------------- ----------------- -----------------
Unrealized Appreciation (Depreciation) as of December
31, 1996:
Appreciation.......................................... $ 110,221 $ 4,056,785 $ 14,276,596
Depreciation.......................................... (83,034) (2,051,341) (369,180)
--------------------- ----------------- -----------------
Net unrealized appreciation......................... $ 27,187 $ 2,005,444 $ 13,907,416
--------------------- ----------------- -----------------
--------------------- ----------------- -----------------
Unrealized Appreciation (Depreciation) for federal
income tax purposes as of December 31, 1996:
Appreciation.......................................... $ 110,221 $ 3,838,918 $ 14,273,646
Depreciation.......................................... (83,034) (2,051,341) (375,173)
--------------------- ----------------- -----------------
Net unrealized appreciation......................... $ 27,187 $ 1,787,577 $ 13,898,473
--------------------- ----------------- -----------------
--------------------- ----------------- -----------------
For federal income tax purposes, the cost of investments
owned at December 31, 1996............................. $40,519,829 $337,970,569 $353,391,639
--------------------- ----------------- -----------------
--------------------- ----------------- -----------------
<CAPTION>
Columbia
High Yield
Fund, Inc. (CHYF)
-----------------
Purchases:
<S> <C>
Investment securities other than U.S. Government
obligations.......................................... $17,722,125
U.S. Government obligations........................... 1,357,219
-----------------
Total purchases..................................... $19,079,344
-----------------
-----------------
Sales and Maturities:
Investment securities other than U.S. Government
obligations.......................................... $12,915,245
U.S. Government obligations........................... 1,844,602
-----------------
Total sales and maturities.......................... $14,759,847
-----------------
-----------------
Net Realized Gain (loss):
Investment securities other than U.S. Government
obligations.......................................... $ 245,768
U.S. Government obligations........................... (7,906)
-----------------
Total net realized gain............................. $ 237,862
-----------------
-----------------
Unrealized Appreciation (Depreciation) as of December
31, 1996:
Appreciation.......................................... $ 955,549
Depreciation.......................................... (104,769)
-----------------
Net unrealized appreciation......................... $ 850,780
-----------------
-----------------
Unrealized Appreciation (Depreciation) for federal
income tax purposes as of December 31, 1996:
Appreciation.......................................... $ 955,549
Depreciation.......................................... (104,769)
-----------------
Net unrealized appreciation......................... $ 850,780
-----------------
-----------------
For federal income tax purposes, the cost of investments
owned at December 31, 1996............................. $26,223,231
-----------------
-----------------
</TABLE>
-
77
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
-- 3. CAPITAL STOCK --
<TABLE>
<CAPTION>
Columbia Columbia Columbia
Common Stock Growth International Stock
Fund, Inc. (CCSF) Fund, Inc. (CGF) Fund, Inc. (CISF)
------------------------- ---------------------------- --------------------------
1996 1995 1996 1995 1996 1995
----------- ------------ ------------- ------------- ------------ ------------
Shares:
<S> <C> <C> <C> <C> <C> <C>
Shares sold...................... 9,187,403 12,907,792 9,588,118 6,481,595 4,458,919 3,176,713
Shares issued for reinvestment of
dividends....................... 3,836,536 1,137,709 4,993,329 2,636,586 808,789
----------- ------------ ------------- ------------- ------------ ------------
13,023,939 14,045,501 14,581,447 9,118,181 5,267,708 3,176,713
Less shares redeemed............. (4,449,235) (2,953,090) (8,408,189) (4,495,529) (3,930,959) (4,992,567)
----------- ------------ ------------- ------------- ------------ ------------
Net increase (decrease) in
shares.......................... 8,574,704 11,092,411 6,173,258 4,622,652 1,336,749 (1,815,854)
----------- ------------ ------------- ------------- ------------ ------------
----------- ------------ ------------- ------------- ------------ ------------
Amounts:
Sales............................ $183,843,205 $221,012,822 $ 309,798,468 $ 187,801,317 $ 62,941,735 $ 38,698,162
Reinvestment of dividends........ 74,699,264 20,863,972 154,190,774 78,122,044 11,145,109
----------- ------------ ------------- ------------- ------------ ------------
258,542,469 241,876,794 463,989,242 265,923,361 74,086,844 38,698,162
Less redemptions................. (89,430,805) (51,951,862) (270,385,702) (129,880,410) (55,506,780) (60,545,640)
----------- ------------ ------------- ------------- ------------ ------------
Net increase (decrease).......... $169,111,664 $189,924,932 $ 193,603,540 $ 136,042,951 $ 18,580,064 $(21,847,478)
----------- ------------ ------------- ------------- ------------ ------------
----------- ------------ ------------- ------------- ------------ ------------
Capital stock authorized
(shares)........................ 100,000,000 100,000,000 100,000,000
Par Value........................ no par $.01 no par
</TABLE>
<TABLE>
<CAPTION>
Columbia
Columbia Small Cap Columbia
Special Fund, Inc. Real Estate Equity
Fund, Inc. (CSF) (CSCF) Fund, Inc. (CREF)
---------------------------- ----------- --------------------------
1996 1995 1996 (1) 1996 1995
------------- ------------- ----------- ------------ ------------
Shares:
<S> <C> <C> <C> <C> <C>
Shares sold............................. 25,624,116 24,380,701 1,756,650 4,543,366 745,236
Shares issued for reinvestment of
dividends.............................. 13,826,136 7,030,821 226,545 116,209
------------- ------------- ----------- ------------ ------------
39,450,252 31,411,522 1,756,650 4,769,911 861,445
Less shares redeemed.................... (24,162,690) (14,439,180) (135,869 ) (2,255,778) (647,683)
------------- ------------- ----------- ------------ ------------
Net increase in shares.................. 15,287,562 16,972,342 1,620,781 2,514,133 213,762
------------- ------------- ----------- ------------ ------------
------------- ------------- ----------- ------------ ------------
Amounts:
Sales................................... $ 593,195,434 $ 507,005,537 $21,545,009 $ 65,389,802 $ 8,920,599
Reinvestment of dividends............... 273,619,242 148,631,551 3,428,343 1,402,375
------------- ------------- ----------- ------------ ------------
866,814,676 655,637,088 21,545,009 68,818,145 10,322,974
Less redemptions........................ (554,251,968) (308,592,942) (1,696,470 ) (31,318,034) (7,750,685)
------------- ------------- ----------- ------------ ------------
Net increase............................ $ 312,562,708 $ 347,044,146 $19,848,539 $ 37,500,111 $ 2,572,289
------------- ------------- ----------- ------------ ------------
------------- ------------- ----------- ------------ ------------
Capital stock authorized (shares)....... 100,000,000 100,000,000 100,000,000
Par Value............................... $.01 no par no par
(1) From inception of operations on
September 11, 1996.
</TABLE>
-
78
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
-- 3. CAPITAL STOCK, CONTINUED --
<TABLE>
<CAPTION>
Columbia Columbia Columbia U.S.
Balanced Daily Income Government Securities
Fund, Inc. (CBF) Company (CDIC) Fund, Inc. (CUSG)
---------------------------- ------------------------- --------------------------
1996 1995 1996 1995 1996 1995
------------- ------------- ------------ ----------- ------------ ------------
Shares:
<S> <C> <C> <C> <C> <C> <C>
Shares sold.................... 12,203,107 12,164,908 1,425,767,034 1,191,109,050 1,751,071 2,438,332
Shares issued for reinvestment
of dividends.................. 3,066,051 1,603,299 40,287,100 39,866,838 230,872 229,910
------------- ------------- ------------ ----------- ------------ ------------
15,269,158 13,768,207 1,466,054,134 1,230,975,888 1,981,943 2,668,242
Less shares redeemed........... (6,405,495) (3,974,088) (1,376,909,687) (1,160,387,368) (2,051,336) (1,843,924)
------------- ------------- ------------ ----------- ------------ ------------
Net increase (decrease) in
shares........................ 8,863,663 9,794,119 89,144,447 70,588,520 (69,393) 824,318
------------- ------------- ------------ ----------- ------------ ------------
------------- ------------- ------------ ----------- ------------ ------------
Amounts:
Sales.......................... $ 251,516,248 $ 230,627,211 $1,425,767,034 $1,191,109,050 $ 14,407,264 $ 19,955,069
Reinvestment of dividends...... 62,884,919 31,608,126 40,287,100 39,866,838 1,898,935 1,885,143
------------- ------------- ------------ ----------- ------------ ------------
314,401,167 262,235,337 1,466,054,134 1,230,975,888 16,306,199 21,840,212
Less redemptions............... (132,861,358) (76,067,027) (1,376,909,687) (1,160,387,368) (16,871,131) (15,082,210)
------------- ------------- ------------ ----------- ------------ ------------
Net increase (decrease)........ $ 181,539,809 $ 186,168,310 $ 89,144,447 $70,588,520 $ (564,932) $ 6,758,002
------------- ------------- ------------ ----------- ------------ ------------
------------- ------------- ------------ ----------- ------------ ------------
Capital stock authorized
(shares)...................... 100,000,000 2,000,000,000 100,000,000
Par Value...................... no par $.001 $.01
</TABLE>
<TABLE>
<CAPTION>
Columbia Fixed Columbia Columbia
Income Securities Municipal Bond High Yield
Fund, Inc. (CFIS) Fund, Inc. (CMBF) Fund, Inc. (CHYF)
------------------------- ------------------------ --------------------------------
1996 1995 1996 1995 1996 1995
----------- ------------ ----------- ----------- --------------- ---------------
Shares:
<S> <C> <C> <C> <C> <C> <C>
Shares sold........................ 9,571,457 6,735,955 4,732,337 5,057,133 1,058,203 1,176,046
Shares issued for reinvestment of
dividends......................... 1,427,852 1,319,739 1,395,611 1,460,826 197,255 146,858
----------- ------------ ----------- ----------- --------------- ---------------
10,999,309 8,055,694 6,127,948 6,517,959 1,255,458 1,322,904
Less shares redeemed............... (7,165,704) (5,373,406) (6,210,439) (5,096,815) (730,964) (367,495)
----------- ------------ ----------- ----------- --------------- ---------------
Net increase (decrease) in
shares............................ 3,833,605 2,682,288 (82,491) 1,421,144 524,494 955,409
----------- ------------ ----------- ----------- --------------- ---------------
----------- ------------ ----------- ----------- --------------- ---------------
Amounts:
Sales.............................. $124,564,521 $ 86,697,840 $57,398,891 $60,766,673 $ 10,345,832 $ 11,217,136
Reinvestment of dividends.......... 18,580,087 17,119,289 16,930,817 17,726,251 1,925,766 1,406,479
----------- ------------ ----------- ----------- --------------- ---------------
143,144,608 103,817,129 74,329,708 78,492,924 12,271,598 12,623,615
Less redemptions................... (93,474,724) (68,987,070) (75,374,385) (61,463,683) (7,131,758) (3,499,959)
----------- ------------ ----------- ----------- --------------- ---------------
Net increase (decrease)............ $49,669,884 $ 34,830,059 $(1,044,677) $17,029,241 $ 5,139,840 $ 9,123,656
----------- ------------ ----------- ----------- --------------- ---------------
----------- ------------ ----------- ----------- --------------- ---------------
Capital stock authorized
(shares).......................... 200,000,000 100,000,000 100,000,000
Par Value.......................... $.01 $.01 no par
</TABLE>
-
79
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
-- 4. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES --
<TABLE>
<CAPTION>
Columbia
Columbia Columbia Columbia Special
Common Stock Growth International Stock Fund, Inc.
Fund, Inc. (CCSF) Fund, Inc. (CGF) Fund, Inc. (CISF) (CSF)
----------------- --------------------- ------------------- ----------
<S> <C> <C> <C> <C>
Investment management fees incurred............... $2,686,585 $5,711,080 $1,157,227 $12,880,541
Investment management fee computation basis
(percentage of daily net assets per annum)....... .60 of 1% .75 of 1% to 1% 1% to
$200,000,000 daily $500,000,000
net assets; .625 of daily net
1% between assets;
$200,000,000 and .75 of 1%
$500,000,000; and .50 in excess
of 1% in excess of of
$500,000,000 $500,000,000
Transfer agent fee (included in shareholder
servicing costs)................................. $218,624 $510,664 $181,749 $663,083
Fees earned by directors not affiliated with each
Fund's invest-
ment advisor, transfer agent, or Columbia
Management Co.................................... $5,081 $11,090 $1,330 $17,855
Value of investments held at December 31, 1996 by:
Columbia Management Co.......................... $421,467 $96,325 $64,146 $1,981,946
Columbia Funds Management Company............... $81,036 $38,970 $16,126 $751,876
</TABLE>
<TABLE>
<CAPTION>
Columbia Columbia Columbia Columbia
Small Cap Real Estate Equity Balanced Fund, Daily Income
Fund, Inc. (CSCF) Fund, Inc. (CREF) Inc. (CBF) Company (CDIC)
----------------- ------------------ ---------------- ------------------
Investment management fees incurred............... $40,273 $232,413 $2,935,512 $4,009,904
<S> <C> <C> <C> <C>
Investment management fee computation basis
(percentage of daily net assets per annum)....... 1% .75 of 1% .50 of 1% .50 of 1% to
$500,000,000 daily
net assets; .45 of
1% between
$500,000,000 and
$1,000,000,000;
and .40 of 1% in
excess of
$1,000,000,000
Transfer agent fee (included in shareholder
servicing costs)................................. $3,700 $24,214 $301,673 $578,095
Fees earned by directors not affiliated with each
Fund's invest-
ment advisor, transfer agent, or Columbia
Management Co.................................... $336 $6,680 $9,624
Value of investments held at December 31, 1996 by:
Columbia Management Co.......................... $108,520 $8,466,518
Columbia Funds Management Company............... $8,023 $20,066 $6,687,297
</TABLE>
-
80
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
-- 4. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES, CONTINUED --
<TABLE>
<CAPTION>
Columbia Fixed
Columbia U.S. Income
Government Securities Columbia
Securities Fund, Inc. Municipal Bond
Fund, Inc. (CUSG) (CFIS) Fund, Inc. (CMBF)
-------------------- ---------------- -----------------
<S> <C> <C> <C>
Investment management fees incurred..................... $206,591 $1,668,004 $1,881,542
Investment management fee computation basis (percentage
of daily net assets per annum)......................... .50 of 1% .50 of 1% .50 of 1%
Transfer agent fee (included in shareholder servicing
costs)................................................. $33,282 $172,277 $79,716
Fees earned by directors not affiliated with each Fund's
investment advisor, transfer agent, or Columbia
Management Co.......................................... $482 $3,861 $4,374
Value of investments held at December 31, 1996 by:
Columbia Management Co................................ $440,260 $927,013 $1,801,085
Columbia Funds Management Company..................... $68,454 $278,421 $255,320
<CAPTION>
Columbia
High Yield
Fund, Inc. (CHYF)
-----------------
<S> <C>
Investment management fees incurred..................... $150,432
Investment management fee computation basis (percentage
of daily net assets per annum)......................... .60 of 1%
Transfer agent fee (included in shareholder servicing
costs)................................................. $19,989
Fees earned by directors not affiliated with each Fund's
investment advisor, transfer agent, or Columbia
Management Co.......................................... $287
Value of investments held at December 31, 1996 by:
Columbia Management Co................................ $326,480
Columbia Funds Management Company..................... $289,209
</TABLE>
The investment advisor of the Funds is Columbia Funds Management Company. The
transfer agent for the Funds is Columbia Trust Company, a subsidiary of Columbia
Funds Management Company. The transfer agent is compensated based on a per
account fee. The contracts for investment advisory and transfer agent services
for the Funds must be renewed annually by a majority vote of the Funds'
shareholders or by the directors of the Funds. Certain officers and directors of
the Funds are also officers and directors of Columbia Funds Management Company,
Columbia Trust Company and Columbia Management Co. They did not receive any
direct payments from the Funds. At December 31, 1996, CCSF, CSF, and CBF had
investments in securities of U.S. Bancorp, which provides custodial services for
these funds.
-
81
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
-----------------------------------------------------------------
To the Directors and Shareholders,
Columbia Common Stock Fund, Inc. (CCSF)
Columbia Growth Fund, Inc. (CGF)
Columbia International Stock Fund, Inc. (CISF)
Columbia Special Fund, Inc. (CSF)
Columbia Small Cap Fund, Inc. (CSCF)
Columbia Real Estate Equity Fund, Inc. (CREF)
Columbia Balanced Fund, Inc. (CBF)
Columbia Daily Income Company (CDIC)
Columbia U.S. Government Securities Fund, Inc. (CUSG)
Columbia Fixed Income Securities Fund, Inc. (CFIS)
Columbia Municipal Bond Fund, Inc. (CMBF)
Columbia High Yield Fund, Inc. (CHYF)
We have audited the accompanying statements of assets and liabilities,
including the schedules of investments for each of the twelve funds comprising
Columbia Funds, as of December 31, 1996, the related statements of operations
for the year then ended, except for CSCF which is for the period from inception,
September 11, 1996, to December 31, 1996, the statements of changes in net
assets for each of the two years in the period then ended, except for CSCF which
is for the period from inception, September 11, 1996, to December 31, 1996 and
the financial highlights for the periods indicated therein. These financial
statements and financial highlights are the responsibility of the Funds'
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audits to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
December 31, 1996, by correspondence with the custodian, and confirmation by
correspondence with brokers as to securities purchased but not received at that
date or other auditing procedures where confirmations from brokers were not
received. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of the
twelve funds comprising Columbia Funds as of December 31, 1996, the results of
their operations for the year then ended, except for CSCF which is for the
period from inception, September 11, 1996, to December 31, 1996, the changes in
their net assets for each of the two years in the period then ended, except for
CSCF which is for the period from inception, September 11, 1996, to December 31,
1996, and the financial highlights for the periods indicated therein, in
conformity with generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
Portland, Oregon
January 31, 1997
-
82
<PAGE>
NOTES
<PAGE>
[LOGO]
COLUMBIA FUNDS
-- 1301 S.W. FIFTH AVENUE, PORTLAND, OREGON 97201 --
-- DIRECTORS --
------------------------------------------
JAMES C. GEORGE
J. JERRY INSKEEP, JR.
JOHN A. KEMP
THOMAS R. MACKENZIE
JAMES F. RIPPEY
RICHARD L. WOOLWORTH
-- OFFICERS --
------------------------------------------
J. JERRY INSKEEP, JR., CHAIRMAN
JOHN A. KEMP, PRESIDENT
GEORGE L. HANSETH, SENIOR VICE PRESIDENT
ALBERT D. CORRADO, VICE PRESIDENT
LAWRENCE S. VIEHL, VICE PRESIDENT
JEFF B. CURTIS, SECRETARY
-- INVESTMENT ADVISOR --
------------------------------------------
COLUMBIA FUNDS MANAGEMENT COMPANY
1300 S.W. SIXTH AVENUE
PORTLAND, OREGON 97201
-- LEGAL COUNSEL --
------------------------------------------
STOEL RIVES L.L.P.
900 S.W. FIFTH AVENUE, SUITE 2300
PORTLAND, OREGON 97204-1268
-- AUDITORS --
------------------------------------------
COOPERS & LYBRAND L.L.P.
1300 S.W. FIFTH AVENUE, SUITE 2700
PORTLAND, OREGON 97201
-- TRANSFER AGENT --
------------------------------------------
COLUMBIA TRUST COMPANY
1301 S.W. FIFTH AVENUE
PORTLAND, OREGON 97201
THIS INFORMATION MUST BE PRECEDED OR ACCOMPANIED BY A CURRENT PROSPECTUS. THE
MANAGERS' VIEWS CONTAINED IN THIS REPORT ARE SUBJECT TO CHANGE AT ANY TIME,
BASED ON MARKET AND OTHER CONSIDERATIONS. PORTFOLIO CHANGES SHOULD NOT BE
CONSIDERED RECOMMENDATIONS FOR ACTION BY INDIVIDUAL INVESTORS. FUNDS DISTRIBUTED
BY COLUMBIA FINANCIAL CENTER INCORPORATED. MEMBER NASD.
