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COLUMBIA FUNDS
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2000 SEMIANNUAL REPORT
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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 U.S. GOVERNMENT SECURITIES FUND
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COLUMBIA FIXED INCOME SECURITIES FUND
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COLUMBIA NATIONAL MUNICIPAL BOND FUND
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COLUMBIA OREGON MUNICIPAL BOND FUND
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COLUMBIA HIGH YIELD FUND
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COLUMBIA DAILY INCOME COMPANY
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<PAGE>
TABLE OF CONTENTS
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SEMIANNUAL REPORT
JUNE 30, 2000
INTRODUCTION 1 To Our Shareholders
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INVESTMENT 4 Columbia Common Stock Fund
REVIEWS 6 Columbia Growth Fund
8 Columbia International Stock Fund
10 Columbia Special Fund
12 Columbia Small Cap Fund
14 Columbia Real Estate Equity Fund
16 Columbia Balanced Fund
18 Columbia U.S. Government Securities Fund
20 Columbia Fixed Income Securities Fund
22 Columbia National Municipal Bond Fund
24 Columbia Oregon Municipal Bond Fund
26 Columbia High Yield Fund
28 Columbia Daily Income Company
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FINANCIAL 29 Financial Highlights
INFORMATION 36 Schedules of Investments
82 Statements of Assets and Liabilities
84 Statements of Operations
86 Statements of Changes in Net Assets
88 Notes to Financial Statements
COLUMBIA FUNDS
P.O. BOX 1350
PORTLAND, OR 97207-1350
1-800-547-1707
www.columbiafunds.com
FRONT COVER FEATURES A PHOTOGRAPH OF THE 83-YEAR-OLD VISTA HOUSE, PERCHED ATOP
CROWN POINT AT THE MOUTH OF THE COLUMBIA RIVER GORGE. THE PHOTO WAS TAKEN IN
OREGON, LOOKING ACROSS TO WASHINGTON STATE.
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TO OUR SHAREHOLDERS
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We are pleased to present the Columbia Funds 2000 Semiannual Report. In the
following pages, you'll find updated financial information for our family of 13
no-load mutual funds. And, our portfolio managers have prepared summaries of the
investment activity that occurred in each Fund for the six months ended June 30,
2000. We hope that this information will be valuable to you as you evaluate your
investments with us. Before you delve into individual fund information, however,
we'd like to provide an overview of the challenging environment in which the
Funds operated.
MARKETS EXPERIENCE EXCEPTIONAL VOLATILITY
The first half of 2000 has been marked by record volatility (particularly in
small- and mid-cap stocks), a significant correction in the technology sector,
and a subsequent recovery in a few of the best-capitalized technology industry
leaders. Though earnings growth in general has met and even exceeded
expectations, stock markets around the world have had a difficult time gaining
ground.
Why all this volatility? A large part of it is due to a soaring domestic economy
and the Federal Reserve Board's attempt to keep it under control. Unemployment
has remained low, productivity has continued to improve, consumer spending has
stayed strong and energy prices have moved higher. These factors together have
raised anxieties that inflationary pressures could develop. As a result, the Fed
has maintained a tightening policy, raising interest rates to reduce the
availability of credit to borrowers in an effort to slow the pace of consumer
spending and economic growth. Additional volatility has been caused by concerns
about whether the Fed will be successful in engineering a soft landing and how
corporate earnings may be impacted.
A TREND OF FED TIGHTENING
The Fed began raising the federal funds rate -- the interest rate banks charge
each other for loans -- in June 1999. By early 2000, it was evident that
economic activity was not slowing and was even accelerating. Therefore, the Fed
raised rates again in February and March, each time by 0.25%. More aggressive
action was taken in May as the Fed raised rates 0.50% in one swift move.
FEDERAL RESERVE BOARD ADOPTS
TIGHTENING POLICY
[CHART]
<TABLE>
<CAPTION>
Federal
Funds
Rate
-------
<S> <C>
May 99 4.75%
Jun 99 5.00%
Aug 99 5.25%
Oct 99 5.25%
Nov 99 5.50%
Dec 99 5.50%
Feb 00 5.75%
Mar 00 6.00%
May 00 6.50%
Jun 00 6.50%
</TABLE>
1
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TO OUR SHAREHOLDERS
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By late spring, it appeared that the Fed's actions had finally begun to cool the
economy. The latest economic indicators showed a softening in employment, retail
sales, housing and manufacturing activity. Even though growth may be slowing,
consumers continue to be upbeat and job growth is still strong, arguing against
a major downshift in economic growth.
We believe that the Fed's continued vigilance will foster a more moderate and
sustainable pace of economic growth. The Fed's actions should help maintain
the current environment of low inflation, high employment and improving
productivity. Although inflation has risen from its low levels of 1998, it
has not reached levels considered problematic. The pressure to raise prices
has increased in some industries, but the very competitive nature of many
world markets and the productivity gains realized from new technologies
should help keep prices in check for consumers.
THE EQUITY MARKETS
Equity performance in the first six months of the year reflects concerns that
earnings expectations could be too optimistic, particularly if the Fed acted too
aggressively. These fears resulted in the stock market correction that began in
March and continued through late May. In the second quarter, the S&P 500 fell
2.66%, while the NASDAQ Index lost 13.23%, demonstrating a substantial recovery
during the period considering the Index plunged 35% in April. International
stocks also lost ground.
The best performing sectors in this volatile environment tended to be the more
defensive groups, such as health care, utilities and energy. (Sectors are
considered defensive when they are less affected by changes in the economy.)
Second quarter declines pulled most equity indices underwater for the first half
of the year; some exceptions for the six months ended June 30 were the Russell
2000, up 3.04%, the S&P Mid Cap 400, up 8.97%, and the National Association of
Real Estate Investment Trusts Index, up 13.18%. The performance of Columbia
Funds' large cap equity portfolios were well above the S&P 500 for the first
half primarily because of solid stock selection in key industries related to our
investment themes, such as consumer staples, technology and finance.
FIXED INCOME SECURITIES
Interest rates generally rose through mid-May as investors contemplated the
likelihood of more aggressive Fed action. After the Fed's last rate increase in
May, the bond markets rallied when new economic releases appeared to show
softening consumer demand. The U.S. Treasury's ongoing program to buy back
outstanding issues remains a strong influence on fixed income returns, perhaps
artificially driving up prices as supply diminishes over time. Although
corporate and mortgage-backed debt regained some ground
---------------------------------
We have refocused on the
Aging of America theme
while maintaining our
Technology Age and Baby
Boomer Spending themes. [GRAPHIC]
---------------------------------
2
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TO OUR SHAREHOLDERS
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during the second quarter, Treasury securities have outperformed both sectors so
far this year.
LOOKING AHEAD
We anticipate that the Fed will eventually be successful in engineering a soft
landing for the economy. In an environment of slower, more sustainable growth,
we believe that corporate and mortgage-backed issues provide attractive yields
and are expected to contribute to higher total returns in our fixed income
portfolios going forward.
In the equity markets, we expect decelerating earnings gains to contribute to
market fluctuations in the months ahead. While technology and smaller cap
names have experienced some of the greatest volatility, many of these
companies still appear to have the strongest prospects for earnings growth in
the future. We continue to be selective in constructing our portfolios,
looking for companies with good earnings visibility, adequate financing,
leading positions in their industries and the ability to sustain and
accelerate growth even as economic activity moderates.
KEEP IN TOUCH
Throughout the ups and downs of the financial markets, much of your Funds'
success can be attributed to our dedicated team of professionals. To keep
abreast of news at Columbia, we invite you to visit our Web site at
www.columbiafunds.com on a regular basis. On the site, you can access your
account information and track the performance of your investments. If you have
questions about how to get online, or if you need more information about your
account or our services, please contact us at 1-800-547-1707. And, be sure to
watch your mail over the next few months for news about new products and
services from Columbia.
Thank you for your confidence in Columbia Funds. We look forward to serving your
investment needs in the months and years to come.
Sincerely,
/s/ Thomas L. Thomsen /s/ Jeff B. Curtis
Thomas L. Thomsen Jeff B. Curtis
PRESIDENT AND CHIEF INVESTMENT OFFICER PRESIDENT
COLUMBIA FUNDS MANAGEMENT COMPANY COLUMBIA FUNDS
August 2000
---------------------------
We at Columbia have
remained committed to
pursuing opportunities
with the greatest
potential to reward
our shareholders. [GRAPHIC]
---------------------------
3
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INVESTMENT REVIEW
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COLUMBIA COMMON STOCK FUND
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PERFORMANCE
For the six months ended June 30, 2000, Columbia Common Stock Fund returned
6.96%. The Fund's benchmark index, the S&P 500, declined for the period and
posted a loss of 0.42%.
VOLATILE MARKET CONDITIONS
The stock market showed increased volatility in the first half of the year as
fears of inflation dominated the market. In an effort to slow economic growth to
a more sustainable pace and stave off inflation, the Federal Reserve Board
aggressively raised short-term interest rates a total of 1.00% in three moves
during the period. In the spring, economic data finally indicated some slowing
in the economy, which may prompt the Fed to adopt a neutral bias going forward.
Some of the greatest casualties of stock market turbulence were some individual
technology issues. Our approach of not getting caught up in the hype of the
market, and focusing on fundamentals to drive stock selection, served us well as
our technology selections nicely outpaced the market. Despite higher relative
valuations, technology fundamentals remain robust; and, on balance, we view
technology as a sector filled with attractive investment opportunities.
MAINTAINING A THEMATIC DIRECTION
Our investment themes continued to have a strong influence on the portfolio. In
the second quarter, we sold our holdings in the World Recovery theme, which
served the Fund well in 1999 and early in 2000. Going into the second half of
the year, however, we felt this group of stocks was fairly priced and that
global economies would decelerate from their very healthy levels. Proceeds were
directed into the Aging of America theme, particularly in health care issues and
"asset accumulators" (companies that manage retirement assets). We also
continued to emphasize Technology Age and Baby Boomer Spending themes during the
period.
STAND-OUT SECTORS
Throughout the first six months of 2000, Fund performance was led by the
consumer staples and energy sectors but also received a boost from the
technology and finance sectors. Two of the Fund's top performers were Pfizer and
Micron Technology. Investor
AVERAGE ANNUAL TOTAL RETURNS
AS OF JUNE 30, 2000
<TABLE>
<CAPTION>
S&P
CCSF 500
---- ---
<S> <C> <C>
1 Year 18.27% 7.25%
5 Years 24.25% 23.80%
Since Inception 19.64% 18.78%
</TABLE>
----------------------
GROWTH OF $10,000
SINCE INCEPTION
[CHART]
<TABLE>
<CAPTION>
COLUMBIA
COMMON
STOCK S&P
FUND 500
-------- ---
<S> <C> <C>
10/1/91 $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 $22,760 $22,007
12/31/97 $28,534 $29,349
12/31/98 $36,033 $37,737
12/31/99 $45,315 $45,677
6/30/00 $48,462 $45,482
</TABLE>
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. THE S&P 500 IS AN
UNMANAGED INDEX GENERALLY REPRESENTATIVE OF THE U.S. STOCK MARKET.
4
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INVESTMENT REVIEW
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recognition and appreciation of the outstanding growth prospects of the newly
merged Pfizer/Warner Lambert entity drove Pfizer performance. Pfizer, an Aging
of America holding, is one of the world's largest pharmaceutical and consumer
health care corporations.
Micron Technology, a Technology Age holding, is the world's market share leader
of DRAM (Dynamic Random Access Memory) semiconductors. The company benefited
from a tightening supply in DRAM semiconductors over the past six months, which
in turn should drive robust earnings growth in the months ahead.
As could be expected, we didn't pitch a perfect game in the first half of the
year. Holdings in International Paper, Honeywell International and Costco
hampered performance. International Paper, a global leader in the paper and
forest products industry, suffered from an easing in forest product fundamentals
and rising concerns of a slowing economy. The same economic concerns -- as well
as management's difficulties in executing its business plan -- hurt Honeywell
International, a diversified manufacturing company. Furthermore, we sold our
holdings in Costco, which operates warehouses offering discounted private label
and national brands, due to deceleration in earnings growth and heightened
concerns about moderating consumer spending.
MODERATE, HEALTHY GROWTH EXPECTED
In the months ahead, we expect earnings growth to moderate but remain at healthy
levels as the robust domestic economy cools. Given this dynamic, we are placing
an increased focus on companies that we believe can deliver solid earnings
growth in an environment of decelerating economic growth. In terms of our
investment themes, we feel comfortable that their underlying trends are solidly
in place and will continue to have a positive influence on the portfolio.
TOP 10 HOLDINGS
AS A % OF NET ASSETS
<TABLE>
<CAPTION>
6/30/00 12/31/99
<S> <C> <C>
Pfizer, Inc. 6.7 1.0
Intel Corp. 5.2 1.9
Micron Technology, Inc. 4.1 0.6
General Electric Co. 3.9 3.9
Citigroup, Inc. 3.5 3.4
Cisco Systems, Inc. 3.5 2.7
US West, Inc. 2.9 --
American International Group, Inc. 2.7 2.0
Lucent Technologies, Inc. 2.4 2.5
Tyco International Ltd. 2.3 1.2
</TABLE>
----------------------
TOP 5 SECTORS
AS A % OF NET ASSETS
<TABLE>
<CAPTION>
6/30/00 12/31/99
<S> <C> <C>
Technology 38.2 30.8
Finance 14.0 13.0
Consumer Staples 13.2 9.3
Media/Telecommunications 12.8 19.3
Basic Industries & Mfg. 8.5 11.7
</TABLE>
Thank you for your continued support of Columbia Common Stock Fund.
GUY W. POPE
ON BEHALF OF THE COLUMBIA INVESTMENT TEAM
5
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INVESTMENT REVIEW
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COLUMBIA GROWTH FUND
--------------------------------------
FUND PERFORMANCE
We are pleased to report that for the six months ended June 30, 2000, Columbia
Growth Fund gained 10.45%, while the S&P 500 lost 0.42% and the Russell 1000
Growth Index gained 4.23%.
KEEPING AN EYE ON INFLATION
The Fund's strong performance was achieved in an environment of significant
volatility and rising inflation concerns. We, too, are highly focused on the
inflation outlook, particularly given the high price/earnings (P/E) ratios in
the market for growth stocks. Historically, rising inflation has resulted in
large declines in the P/E ratios of high growth stocks. However, we continue to
be convinced that inflation is not a secular problem and therefore have remained
committed to companies with strong growth prospects.
STRONG FUND PERFORMERS
Major contributors to Fund performance were found in the semiconductor and
communications equipment industries, as well as select consumer growth issues.
Micron Technology, a manufacturer of semiconductor memory products, and Intel, a
semiconductor chipmaker, were significant positions that gained 129% and 63% for
the period, respectively. The stocks surged due to a favorable combination of
capacity reduction in the prior period, as well as current and expected strong
demand. The chips, boards, systems and software produced by these companies are
used in communication devices, personal computers and computer servers.
The rapid expansion of broadband (high speed Internet access) capacity has
underpinned robust demand for various communications equipment and components,
data storage and service products, and custom billing and other software
products. Benefiting from these respective trends have been Nortel Networks, JDS
Uniphase, EMC and Amdocs, all of which contributed positively to the Fund's
six-month performance.
AVERAGE ANNUAL TOTAL RETURNS
AS OF JUNE 30, 2000
<TABLE>
<CAPTION>
RUSSELL
S&P 1000
CGF 500 GROWTH
------ ------ ------
<S> <C> <C> <C>
1 Year 21.49% 7.25% 25.67%
5 Years 25.72% 23.80% 28.67%
10 Years 19.01% 17.81% 20.11%
20 Years 18.61% 17.33% 17.59%
</TABLE>
----------------------
GROWTH OF $10,000
OVER 20 YEARS
[CHART]
<TABLE>
<CAPTION>
COLUMBIA RUSSELL 1000
GROWTH FUND S&P 500 GROWTH
----------- ------- ------------
<S> <C> <C> <C>
6/30/80 $10,000 $10,000 $10,000
6/30/81 $13,812 $12,051 $11,951
6/30/82 $12,472 $10,664 $10,109
6/30/83 $24,291 $17,157 $16,987
6/30/84 $19,838 $16,351 $14,493
6/30/85 $26,728 $21,382 $18,502
6/30/86 $34,469 $29,020 $26,247
6/30/87 $39,711 $36,312 $31,194
6/30/88 $39,346 $33,810 $27,697
6/30/89 $45,606 $40,738 $33,400
6/30/90 $53,282 $47,448 $40,899
6/30/91 $56,372 $50,982 $44,927
6/30/92 $62,308 $57,814 $51,051
6/30/93 $76,732 $65,694 $55,661
6/30/94 $78,221 $66,620 $55,516
6/30/95 $96,697 $83,988 $72,454
6/30/96 $122,776 $105,834 $92,618
6/30/97 $152,205 $142,547 $121,626
6/30/98 $203,498 $185,554 $159,780
6/30/99 $249,997 $227,768 $203,367
6/30/00 $303,807 $244,259 $255,572
</TABLE>
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. THE S&P 500 IS AN
UNMANAGED INDEX GENERALLY REPRESENTATIVE OF THE U.S. STOCK MARKET. THE RUSSELL
1000 GROWTH INDEX MEASURES THE PERFORMANCE OF THOSE RUSSELL 1000 COMPANIES WITH
HIGHER PRICE-TO- BOOK RATIOS AND HIGHER FORECASTED GROWTH VALUES; THE RUSSELL
1000 INDEX MEASURES THE PERFORMANCE OF THE 1000 LARGEST U.S. COMPANIES BASED ON
TOTAL MARKET CAPITALIZATION.
6
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INVESTMENT REVIEW
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Also contributing to good fund performance was Kohl's, a
Milwaukie, Wisconsin-based department store company. With a unique store format
and merchandising mix, the company has had an excellent growth record in a
broadly defined business that has challenged many others. With its acquisition
of Caldor, a discount retail chain, Kohl's has entered the New York, Northeast
and Mid-Atlantic markets with superior results.
SOME IMPROVEMENTS ANTICIPATED
The Fund experienced disappointing results from some
holdings, including Lucent Technologies, Clear Channel Communications and
Staples. Lucent sells telecommunications equipment, but has lost some market
share and has experienced some execution problems. We believe that new products
and improvements in execution should eventually improve performance. A
diversified media company, Clear Channel has a robust business, but its share
price has declined due to concerns about slowing demand for radio advertising.
We think that these concerns are currently overdone and the stock remains
attractive. Finally, we sold our holdings in Staples, an office supply retailer.
The company incurred greater than expected costs in its efforts to expand its
e-commerce operations, and competition in the office supplies market has
intensified.
EARNINGS GROWTH OPPORTUNITIES AHEAD
Our longer-term outlook for stocks is positive and we believe that the Fund is
well positioned. We expect that a moderating economy and a reduction in
inflation fears should take downward pressure off P/E ratios generally.
Meanwhile, we look to the superior earnings growth prospects of the Fund's
holdings to produce competitive returns.
TOP 10 HOLDINGS
AS A % OF NET ASSETS
<TABLE>
<CAPTION>
6/30/00 12/31/99
<S> <C> <C>
Pfizer, Inc. 5.7 --
Intel Corp. 5.1 1.9
Micron Technology, Inc. 4.0 1.0
Cisco Systems, Inc. 3.8 3.2
Tyco International Ltd. 3.3 2.7
US West, Inc. 3.0 --
Flextronics International Ltd. 3.0 2.1
Lucent Technologies, Inc. 2.6 2.9
EMC Corp. 2.5 1.8
American International Group, Inc. 2.4 1.9
</TABLE>
----------------------
TOP 5 SECTORS
AS A % OF NET ASSETS
<TABLE>
<CAPTION>
6/30/00 12/31/99
<S> <C> <C>
Technology 45.9 37.2
Media/Telecommunications 13.9 18.3
Consumer Staples 12.1 9.0
Finance 10.0 12.5
Basic Industries & Mfg. 7.1 6.5
</TABLE>
Thank you for your continued confidence in Columbia Growth Fund.
ALEXANDER S. MACMILLAN
PORTFOLIO MANAGER
7
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INVESTMENT REVIEW
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COLUMBIA INTERNATIONAL STOCK FUND
-------------------------------------
SIX-MONTH RETURNS
International markets struggled in the first half of 2000. For the six months
ended June 30, 2000, Columbia International Stock Fund returned -12.01%. The
MSCI EAFE Index was also down for the period, returning -3.95%.
MIXED RESULTS OVERSEAS
Foreign markets suffered in the period as a fairly stagnant first quarter gave
way to a volatile second quarter. In Europe, market gains were posted by Sweden,
France and Italy, which were up 12.1%, 10.5% and 8.0%, respectively. However,
these advances were offset by losses in the United Kingdom (-7.2%) and Germany
(-3.7%), where nearly a quarter of the Fund's assets were invested. Performance
in European markets was further impeded by weaker currencies: both the Euro and
the Pound Sterling were down over 5%.
Asian markets did not fare much better during the period. The Japanese market
was weak and posted a -2.4% return. Poor performance was exacerbated by a
weak Yen, which declined over 3% for the period. Other Southeast Asian
markets, such as Singapore and Indonesia, also declined, but the Fund was not
impacted to any significant degree due to its modest holdings in this region.
KEY CONTRIBUTORS TO RETURNS
Despite a challenging environment, several holdings made positive contributions.
Alcatel, a leading French telecommunications equipment provider, was a very
strong performer. Also in Europe, insurance stocks benefited from increases in
premiums. AXA SA, Swiss Re and Allianz AG all posted gains for the periods. The
Fund's holdings in oil stocks also performed well. The price of crude oil rose
steadily over the past six months, paving the way for good performance from
names like Total Fina Elf, Shell and BP Amoco.
AVERAGE ANNUAL TOTAL RETURNS
AS OF JUNE 30, 2000
<TABLE>
<CAPTION>
MSCI
CISF EAFE
------ ------
<S> <C> <C>
1 Year 28.94% 17.44%
5 Years 17.72% 11.64%
Since Inception 14.13% 12.25%
</TABLE>
-----------------
GROWTH OF $10,000
SINCE INCEPTION
[CHART]
<TABLE>
<CAPTION>
COLUMBIA
INTERNATIONAL
STOCK FUND MSCI EAFE
------------- ---------
<S> <C> <C>
10/1/92 $10,000 $10,000
12/31/92 $10,060 $9,623
12/31/93 $13,417 $12,794
12/31/94 $13,086 $13,825
12/31/95 $13,760 $15,422
12/31/96 $16,042 $16,403
12/31/97 $17,882 $16,740
12/31/98 $20,177 $20,144
12/31/99 $31,865 $25,643
6/30/00 $28,035 $24,634
</TABLE>
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. THE MSCI EAFE INDEX IS A
MARKET WEIGHTED INDEX COMPOSED OF COMPANIES REPRESENTATIVE OF THE MARKET
STRUCTURE OF 20 DEVELOPED MARKET COUNTRIES IN EUROPE, AUSTRALASIA AND THE FAR
EAST.
8
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INVESTMENT REVIEW
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The Fund was held back in the first half by its strong emphasis on technology
and telecommunications issues, a strategy that worked exceedingly well in 1999.
For instance, Equant, a Dutch telecommunication services company, experienced a
sharp sell-off of its stock as order trends appeared disappointing. Vodafone
Airtouch, the world's largest telecommunications company, also suffered a
sell-off following its completion of a major acquisition of Mannesmann. Consumer
staple stocks -- such as Heineken and Nestle -- did have positive growth during
the period.
SIGNS OF CONFIDENCE
We maintain a positive outlook for world growth. European economies, in
particular, continue to exhibit signs of growth and confidence, which should
provide firm, underlying support for expansion in coming months. Therefore, we
recently increased our investment positions in Europe. Pharmaceuticals and
consumer staples appear attractive, and we added to holdings in Aventis, a
French company engaged in the development of pharmaceuticals, and Danone, a
French producer and seller of food and beverage products.
In Asia, the Japanese market continues to make slow but positive progress. In
Japan, we will continue to emphasize technology and electronics companies with a
strong international presence. However, we have recently added some
domestic-oriented companies in retailing and real estate to take advantage of
improving consumer confidence as unemployment rates gradually fall. Furthermore,
we believe that the U.S. dollar will decline slightly relative to Asian and
other currencies in the coming months, which would contribute to investment
gains.
TOP 10 HOLDINGS
AS A % OF NET ASSETS
<TABLE>
<CAPTION>
6/30/00 12/31/99
<S> <C> <C>
Skandia Insurance Co., Ltd. 2.1 1.1
WPP Group plc 1.9 1.9
Vodafone Airtouch plc 1.7 0.8
Mitsubishi Electric Corp. 1.4 --
Isetan Co., Ltd. 1.4 --
NEC Corp. 1.4 0.4
Banyu Pharmaceutical Co., Ltd. 1.4 --
Alcatel 1.3 --
NTT Docomo, Inc. 1.2 2.0
Compass Group plc 1.2 1.4
</TABLE>
---------------------
TOP 5 COUNTRIES
AS A % OF NET ASSETS
<TABLE>
<CAPTION>
6/30/00 12/31/99
<S> <C> <C>
Japan 27.1 26.4
United Kingdom 18.0 18.9
France 8.9 5.7
Netherlands 6.9 6.2
Germany 6.8 6.8
</TABLE>
Thank you for your interest in Columbia International Stock Fund.
JAMES M. MCALEAR
PORTFOLIO MANAGER
9
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INVESTMENT REVIEW
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COLUMBIA SPECIAL FUND
------------------------------------
COMPELLING RETURNS
For the six months ended June 30, 2000, Columbia Special Fund reported a 21.85%
return. Performance was favorable compared to the S&P Mid Cap 400 and the
Russell 2000 Indices, which returned 8.34% and 3.04%, respectively.
VOLATILE ENVIRONMENT FOR SMALL- AND MID-CAP STOCKS
The year 2000 began with markets climbing to new heights, led by the technology
and biotechnology sectors. February proved to be one of the strongest months in
history for small- and mid-cap stocks, with the NASDAQ closing over the 5000
point mark for the first time ever. A sharp correction, how-ever, ensued in
March and valuations between technology and non-technology stocks narrowed.
Market turbulence persisted in the second quarter, with many popular indices
reporting only slight gains or declines. The S&P Mid Cap 400 gained only 0.84%,
the Russell 2000 was down 3.78%, and the broader S&P 500 lost 2.66%. These
performance figures were indicative of the general correction in growth stocks,
particularly in technology. However, the market did rally in the closing weeks
of June as signs of a cooling economy suggested that further Federal Reserve
interest rate hikes might not be necessary.
PORTFOLIO ACTIVITY
As certain technology stocks began hitting their price targets in February and
early March, we trimmed our holdings. In many cases, technology companies
continued to provide the strongest prospects for future earnings growth, so we
remained focused on finding and holding established, profit-producing business
models that possessed reasonable valuations.
Throughout the period, the Fund benefited from its holdings in energy stocks,
which held up well in the weak market environment. Higher oil and gas prices
produced strong earnings for energy producing companies, and energy services
companies also experienced improved earnings from increased spending on
AVERAGE ANNUAL TOTAL RETURNS
AS OF JUNE 30, 2000
<TABLE>
<CAPTION>
S&P
MID CAP RUSSELL
CSF 400 2000
------ ------ -------
<S> <C> <C> <C>
1 Year 62.27% 16.98% 14.32%
5 Years 23.01% 21.19% 14.27%
10 Years 18.66% 18.03% 13.57%
</TABLE>
-----------------
GROWTH OF $10,000
OVER 10 YEARS
[CHART]
<TABLE>
<CAPTION>
COLUMBIA
SPECIAL FUND RUSSELL 2000 S&P MIDCAP 400
------------ ------------ --------------
<S> <C> <C> <C>
6/30/90 $10,000 $10,000 $10,000
6/30/91 $10,045 $10,123 $11,286
6/30/92 $11,695 $11,597 $13,381
6/30/93 $15,080 $14,612 $16,421
6/30/94 $16,320 $15,248 $16,411
6/30/95 $19,639 $18,314 $20,074
6/30/96 $25,093 $22,689 $24,406
6/30/97 $27,238 $26,394 $30,105
6/30/98 $31,019 $30,752 $38,278
6/30/99 $34,093 $31,213 $44,858
6/30/00 $55,323 $35,682 $52,475
</TABLE>
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. THE S&P MIDCAP 400 IS AN
UNMANAGED INDEX GENERALLY CONSIDERED REPRESENTATIVE OF THE U.S. MARKET FOR MID-
CAP STOCKS. THE S&P MIDCAP 400 WILL REPLACE THE RUSSELL 2000 AS THE SPECIAL
FUND'S BENCHMARK INDEX BECAUSE THE MIDCAP INDEX IS MORE REPRESENTATIVE OF THE
TYPES OF STOCKS HELD BY THE FUND. THE RUSSELL 2000 IS AN UNMANAGED INDEX
GENERALLY REPRESENTATIVE OF THE MARKET FOR SMALL, DOMESTIC STOCKS.
10
<PAGE>
INVESTMENT REVIEW
--------------------------------------------------------------------------------
exploration and development. Nabors and Noble Drilling, both drilling
contractors for the oil and gas industries, were two holdings that lifted
performance.
The Fund also benefited from increased exposure to the health care industry.
With cash raised from trimming technology, we added to positions in ALZA Corp.,
which focuses on drug delivery technologies; Cardinal Health, which offers
pharmaceutical products and services to a broad customer base; Tenet Healthcare,
a health care service provider; and Watson Pharmaceuticals, which concentrates
on branded and off-patent pharmaceutical products.
Due to investor fears that rising interest rates would slow consumer spending,
retail and restaurant stocks were generally weak throughout the period. Fund
performance was hampered by holdings in Seattle-based retailer Nordstrom, as
well as Outback Steakhouse. Also, after increasing 51% in the first quarter due
to strong consumer spending for digital cameras, DVD players and cell phones,
specialty electronics retailer Best Buy was down 25% in the second quarter.
Other disappointments were J.D. Edwards in the software sector and Aspect
Telecommunications in the telecomm equipment sector; we bought these companies
as turnaround candidates, but they continued to stumble during the period.
FOCUS ON EARNINGS GROWTH
Growth stocks have continued to outperform value stocks in the past six months.
(Growth stocks represent companies expected to grow their earnings faster than
the overall market, while value stocks are those that appear to be undervalued
by the market at large.) The Fund's focus on small- and mid-cap growth stocks
has been beneficial. We expect volatility to persist in the coming months as
investors consider how changing economic prospects may affect different sectors
of the market. We will continue using our research-intensive stock selection
process to identify companies with the best opportunities to deliver
above-average earnings growth over the remainder of the year.
TOP 10 HOLDINGS
AS A % OF NET ASSETS
<TABLE>
<CAPTION>
6/30/00 12/31/99
<S> <C> <C>
Ciena Corp. 3.2 2.4
BEA Systems, Inc. 2.6 4.5
Extreme Networks, Inc. 2.4 0.7
ALZA Corp. 2.4 0.5
Transocean Sedco Forex, Inc. 2.1 --
Waters Corp. 2.1 --
Univision Communications, Inc.
(Class A) 2.0 2.7
Nabors Industries, Inc. 2.0 1.6
LSI Logic Corp. 1.9 1.8
Apache Corp. 1.8 1.1
</TABLE>
TOP 5 SECTORS
AS A % OF NET ASSETS
<TABLE>
<CAPTION>
6/30/00 12/31/99
<S> <C> <C>
Technology 44.6 41.5
Consumer Cyclical 12.6 17.1
Consumer Staples 12.3 10.5
Energy 12.2 4.8
Media/Telecommunications 7.5 17.4
</TABLE>
Thank you for your continued confidence in Columbia Special Fund.
RICHARD J. JOHNSON
PORTFOLIO MANAGER
11
<PAGE>
INVESTMENT REVIEW
--------------------------------------------------------------------------------
COLUMBIA SMALL CAP FUND
------------------------------------
FIRST HALF RESULTS
Columbia Small Cap Fund returned a strong 18.05% for the six months
ended June 30, 2000. In comparison, the Russell 2000 Index returned only 3.04%
for the same period.
MARKET MOVEMENTS
Small cap issues -- particularly those in the technology and biotech sectors --
experienced extreme price fluctuations throughout the period. These stocks
surged in January and February, with February becoming the best performing month
in the history of the Russell 2000. However, a correction ensued in March, which
led to the Index's worst ever single-month relative performance (compared to the
S&P 500). The correction continued into April and May before stocks rebounded in
June as Federal Reserve interest rate hikes finally appeared to be cooling the
economy.
CONTRIBUTORS TO RETURNS
In February and early March, we trimmed technology holdings we felt were
vulnerable to correction, and we focused on tech companies with established,
profit-producing business models. Although our cash position increased as a
result, we reinvested the cash when valuations fell in April and May. Despite
the market's volatility, some of our technology holdings rose over 50% for the
period, including Tekelec, Amphernol, Amdocs, Integrated Device Technology and
MMC Networks.
To help mitigate the impact of the tech correction, we also turned to sectors
such as energy and health care. Our energy and energy services holdings were
strong performers as many stocks gained 25 to 70%, and some of the portfolio's
health care holdings provided even greater returns. For instance, Alkermes, a
company that focuses on drug delivery technologies, was up 92% for the period.
Universal Health Services, an operator of hospital and medical care centers,
rose 82%. In another area, PerkinElmer, which develops equipment used by
researchers to unravel the human genome, increased 59%.
The retail and restaurant sectors were generally weak due to concerns about
slowing consumer spending. As usual, some companies weathered the adverse
environment
AVERAGE ANNUAL TOTAL RETURNS
AS OF JUNE 30, 2000
<TABLE>
<CAPTION>
RUSSELL
CSCF 2000
------ -------
<S> <C> <C>
1 Year 81.02% 14.32%
Since Inception 32.58% 12.91%
</TABLE>
----------------------
GROWTH OF $10,000
SINCE INCEPTION
[CHART]
<TABLE>
<CAPTION>
COLUMBIA
SMALL CAP FUND RUSSELL 2000
-------------- ------------
<S> <C> <C>
10/1/96 $10,000 $10,000
12/31/96 $10,762 $10,520
12/31/97 $14,432 $12,872
12/31/98 $15,109 $12,544
12/31/99 $24,045 $15,211
6/30/00 $28,388 $15,672
</TABLE>
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. THE RUSSELL 2000 IS AN
UNMANAGED INDEX GENERALLY REPRESENTATIVE OF THE MARKET FOR SMALL, DOMESTIC
STOCKS.
12
<PAGE>
INVESTMENT REVIEW
--------------------------------------------------------------------------------
better than others did. An increase of 61% was posted by Michael's Stores, an
arts & crafts supplies retailer with a nationwide presence. In addition, a
high-end concept restaurant chain called P.F. Chang's China Bistro rose 28%.
These stocks performed well due to the companies' abilities to deliver very
strong comparable store sales increases, which is a primary fundamental factor
for both retail and restaurant companies.
ROOM FOR IMPROVEMENT
A volatile market environment is bound to take its toll on weaker companies, and
the portfolio was not immune to some disappointing stock performance. American
Management Systems, a business and information technology (IT) consulting firm,
weakened as IT spending declined post Y2K, and the position was trimmed. A
provider of IT services to the health care industry, TriZetto Group, found that
its stock price declined after a failed merger attempt. Also, InterTAN -- a
consumer electronics retailer and dealer -- was a victim of the general weakness
in the retail sector as some stores experienced slowing sales.
We also had some disappointments in the technology sector. Concurrent Computer,
a supplier of digital video server systems, experienced price declines as the
timetable for cable companies' rollout of video on demand was extended by six
months. Also, Bindview Development, a provider of IT risk management solutions,
suffered earnings disappointment in the first quarter. However, we maintained
our holdings in Bindview since we believed the stock was oversold and there was
a good chance that the company would resume its growth.
LOOKING AHEAD
In this choppy yet overall flat trending market, we will continue to rely on
bottom-up research to seek out companies that we believe will meet or exceed
their revenue and earnings estimates. At current valuation levels, the market
deals harshly with any disappointment on the earnings side, and we are
concentrating on owning companies that we believe can deliver at least the
expected numbers.
TOP 10 HOLDINGS
AS A % OF NET ASSETS
<TABLE>
<CAPTION>
6/30/00 12/31/99
<S> <C> <C>
Power-One, Inc. 3.6 1.9
HNC Software, Inc. 2.1 0.7
Acxiom Corp. 1.9 1.5
Priority Healthcare Corp. (Class B) 1.7 --
Alpharma, Inc. (Class A) 1.7 --
Integrated Device Technology, Inc. 1.6 1.8
PerkinElmer, Inc. 1.5 0.3
Radisys Corp. 1.5 1.4
Apex, Inc. 1.5 1.1
Tekelec 1.5 --
</TABLE>
----------------------
TOP 5 SECTORS
AS A % OF NET ASSETS
<TABLE>
<CAPTION>
6/30/00 12/31/99
<S> <C> <C>
Technology 43.0 57.2
Consumer Staples 13.9 9.0
Consumer Cyclical 13.8 13.7
Energy 12.1 5.4
Media/Telecommunications 3.5 5.6
</TABLE>
Thank you for your interest and confidence in Columbia Small Cap Fund.
RICHARD J. JOHNSON
PORTFOLIO MANAGER
13
<PAGE>
INVESTMENT REVIEW
--------------------------------------------------------------------------------
COLUMBIA REAL ESTATE EQUITY FUND
---------------------------------------------
FUND PERFORMANCE
The REIT market began a new rally in March that appeared to be a sustainable
one. The rally boosted Columbia Real Estate Equity Fund's return for the six
months ended June 30, 2000 to 14.20%. The Fund's benchmark, the NAREIT Index,
slightly lagged at 13.18% for the same period.
MARKET CONDITIONS
Real estate investment trusts (REITs) appeared to emerge from a 2 1/2 year-long
bear market caused by investor expectations of declining forward earnings growth
rates and fears of overbuilding. During the first six months of 2000, forward
growth rates plateaued in the high single-digit range as the real estate market
indicated that it believed a balance of supply and demand had been achieved. In
addition, the flow of capital into real estate was restricted by the broader
financial markets, which had not exercised such a level of control in prior
cycles. For REITs, this capital restriction heightened the cost of conducting
business and further restrained supply.
In the first half of the year, the healthy economy spurred strong demand for
lodging, office, industrial and apartment space. These sectors generated
above-index returns and we had been overweighting them in the Fund's portfolio.
This strategy contributed to our ability to beat the Index during the period.
The strong economy did have an adverse effect on the retail arena, however.
Persistent growth raised concerns of inflation, and the Federal Reserve Board
increased interest rates to slow growth to a more moderate pace. These higher
interest rates fostered the specter of slower consumer spending and impacted
retail REITs.
THE PERFORMERS
In addition to strong sector performance, the Fund benefited from powerful
performance in individual holdings that are representative of the large
capitalization, high quality positions emphasized in the portfolio. Starwood
Hotels & Resorts led the charge, rising 40% for the period in response to
increased demand for lodging. It was followed by a 30% increase from Spieker
Properties and a 27% increase from Boston
AVERAGE ANNUAL TOTAL RETURNS
AS OF JUNE 30, 2000
<TABLE>
<CAPTION>
CREF NAREIT
------ ------
<S> <C> <C>
1 Year 5.41% 3.02%
5 Years 13.66% 9.57%
Since Inception 11.66% 8.44%
</TABLE>
----------------------
GROWTH OF $10,000
SINCE INCEPTION
[CHART]
<TABLE>
<CAPTION>
COLUMBIA REAL NATIONAL
ESTATE ASSOCIATION OF
EQUITY FUND REAL ESTATE TRUSTS
------------- ------------------
<S> <C> <C>
4/01/94 $10,000 $10,000
12/31/94 $10,176 $9,978
12/31/95 $11,892 $11,502
12/31/96 $16,446 $15,558
12/31/97 $20,515 $18,712
12/31/98 $17,985 $15,435
12/31/99 $17,545 $14,722
6/30/00 $20,034 $16,660
</TABLE>
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. THE NATIONAL ASSOCIATION
OF REAL ESTATE INVESTMENT TRUSTS INDEX (NAREIT) TRACKS PERFORMANCE OF ALL
PUBLICLY TRADED EQUITY REITS.
14
<PAGE>
INVESTMENT REVIEW
--------------------------------------------------------------------------------
Properties, which were poised to take advantage of the heightened demand for
industrial and office properties, respectively. The market recognized strong and
rising earnings estimates for these companies.
Some holdings in the Fund that proved disappointing in the period included Simon
Property Group and Mack-Cali Realty. Simon Property Group, primarily involved in
regional malls and community shopping centers, was hurt in part by concerns over
consumer spending and by an unusual 10% decline in the last hour of trading on
June 30. With a focus on office properties, Mack-Cali Realty announced a merger
with Prentiss Properties at the end of June that was poorly received by the
market. Unless the corporation's management provides a favorable rationale for
the merger, the stock may continue to underperform.
OUR OUTLOOK
With forward earnings growth rates for the real estate market appearing stable,
we believe the Fund will continue to provide compelling returns. With 31
holdings and an average market capitalization of $2.8 billion, the Fund focuses
on larger REITs having strong, experienced management teams and favorable
prospects for future growth.
TOP 10 HOLDINGS
AS A % OF NET ASSETS
<TABLE>
<CAPTION>
6/30/00 12/31/99
<S> <C> <C>
Starwood Hotels & Resorts 6.3 1.7
Prologis Trust 6.2 5.6
Vornado Realty Trust 5.6 5.8
Public Storage, Inc. 5.0 5.9
AvalonBay Communities, Inc. 4.9 3.9
Equity Office Properties Trust 4.6 4.5
Spieker Properties, Inc. 4.6 4.2
Trizec Hahn Corp. 4.5 5.4
Simon Property Group, Inc. 4.4 3.3
Cousins Properties, Inc. 4.3 4.6
</TABLE>
----------------------
PORTFOLIO COMPOSITION
AS A % OF NET ASSETS
<TABLE>
<CAPTION>
6/30/00 12/31/99
<S> <C> <C>
Industrial 27.2 30.0
Office 22.7 23.6
Apartments 14.7 15.6
Community Centers 8.8 9.6
Lodging 8.8 3.3
Shopping Malls 8.3 9.4
Cash 7.0 5.7
Other 1.8 2.1
Health Care 0.7 0.7
</TABLE>
Your interest in and support of Columbia Real Estate Equity Fund is appreciated.
DAVID W. JELLISON
PORTFOLIO MANAGER
15
<PAGE>
INVESTMENT REVIEW
--------------------------------------------------------------------------------
COLUMBIA BALANCED FUND
-----------------------------------
SIX-MONTH RESULTS
For the six months ended June 30, 2000, Columbia Balanced Fund returned 5.45%.
During the period, we found equity valuations more attractive than fixed income
valuations, and we reduced our bond weighting in favor of stocks.
THE FINANCIAL MARKETS
The stock market showed increased volatility in the first half of the year as
fears of inflation dominated the market. To slow economic growth to a more
sustainable pace and stave off inflation, the Federal Reserve Board raised
short-term interest rates 1.00% during the period. In the spring, economic data
finally indicated some slowing in the economy, which may prompt the Fed to put
off further rate hikes.
For fixed income securities, the Fed's interest rate hikes had the effect of
creating an inverted yield curve, an unusual situation that may occur when
short-term rates are rising at the same time long-term rates are declining. We
believe that the U.S. Treasury's buy back program of long-term issues also
contributed to the decline in long-term yields.
INVESTMENT THEMES DRIVE STOCK SELECTION
Our investment themes continued to influence portfolio management. In the second
quarter, we sold our holdings in the World Recovery theme, which served the Fund
well in 1999 and early in 2000. We felt this group of stocks was fairly priced
and that global economies would decelerate from their very healthy levels.
Proceeds were directed into the Aging of America theme, particularly in health
care issues and "asset accumulators" (companies that manage retirement assets).
We also maintained the Technology Age and Baby Boomer Spending themes during the
period.
Throughout the period, stock performance was led by the consumer staples and
energy sectors but also received a boost from the technology and finance
sectors. Top performers included Pfizer and Micron Technology. Investors drove
Pfizer's price higher in recognition of the outstanding growth prospects of the
newly merged Pfizer/Warner Lambert entity. Pfizer, an Aging of America theme
holding, is one of the world's largest pharmaceutical and consumer health care
corporations. Micron Technology, a Technology Age holding, is the world's market
share leader of DRAM (Dynamic Random Access Memory) semiconductors. The company
AVERAGE ANNUAL TOTAL RETURNS
AS OF JUNE 30, 2000
<TABLE>
<CAPTION>
S&P LEHMAN
CBF 500 AGGREGATE
------ ------ ---------
<S> <C> <C> <C>
1 Year 11.78% 7.25% 4.57%
5 Years 16.00% 23.80% 6.25%
Since Inception 13.98% 18.78% 7.01%
</TABLE>
--------------------
GROWTH OF $10,000
SINCE INCEPTION
[CHART]
<TABLE>
<CAPTION>
COLUMBIA LEHMAN
BALANCED FUND S&P 500 AGGREGATE
------------- ------- ---------
<S> <C> <C> <C>
10/1/91 $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 $18,666 $22,007 $14,761
12/31/97 $22,164 $29,349 $16,185
12/31/98 $26,612 $37,737 $17,592
12/31/99 $29,992 $45,677 $17,448
6/30/00 $31,622 $45,482 $18,145
</TABLE>
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. THE S&P 500 IS AN
UNMANAGED INDEX GENERALLY REPRESENTATIVE OF THE U.S. STOCK MARKET. THE LEHMAN
AGGREGATE BOND INDEX REPRESENTS AVERAGE MARKET- WEIGHTED PERFORMANCE OF U.S.
TREASURY AND AGENCY SECURITIES, INVESTMENT-GRADE CORPORATE BONDS AND
MORTGAGE-BACKED SECURITIES WITH MATURITIES GREATER THAN ONE YEAR.
16
<PAGE>
INVESTMENT REVIEW
--------------------------------------------------------------------------------
benefited from a tightening supply in DRAM semiconductors over the past six
months, which in turn should drive robust earnings growth in the months ahead.
The Fund experienced some disappointment on the equity side. International
Paper, a global leader in the paper and forest products industry, suffered from
an easing in forest product fundamentals and rising concerns of a slowing
economy. Also, we sold our holdings in Costco, which operates warehouses
offering discounted private label and national brands, due to deceleration in
earnings growth and heightened concerns about moderating consumer spending.
TREASURIES LEAD BONDS
On the bond side, the rally in long-term bonds initially hampered performance
slightly as the Fund was underweighted in long-term Treasuries. On the belief
that long-term Treasuries would continue to do well, we increased the Fund's
weighting in those issues. Because Treasuries were under-represented in the
portfolio, the Fund did not capture the full benefit of the sector's success.
However, mortgage-backed and asset-backed issues, which were the next best
performing fixed income categories, were overweighted in the Fund.
The yield difference between corporate bonds and Treasuries widened during the
period, causing corporate bonds to underperform. Therefore, we increased our
weighting in corporate bonds because we felt that they had become undervalued.
HEALTHY OUTLOOK
We believe that higher interest rates will benefit corporate bonds and
mortgage-backed securities, which are emphasized in the portfolio and should
contribute to an attractive yield on the Fund. For the equity markets, we expect
earnings growth to moderate, but remain at healthy levels as the robust domestic
economy cools. Given this expectation, we are placing an increased focus on
companies that we believe can deliver solid earnings growth in an environment of
decelerating economic growth.
TOP 10 STOCK HOLDINGS
AS A % OF NET ASSETS
<TABLE>
<CAPTION>
6/30/00 12/31/99
<S> <C> <C>
Pfizer, Inc. 3.7 0.4
Intel Corp. 3.0 1.1
Micron Technology, Inc. 2.5 0.3
General Electric Co. 2.3 2.2
Citigroup, Inc. 2.1 2.0
Cisco Systems, Inc. 2.0 1.7
US West, Inc. 1.8 --
American International Group, Inc. 1.5 1.2
Lucent Technologies, Inc. 1.5 1.5
Tyco International Ltd. 1.4 0.7
</TABLE>
--------------------
<TABLE>
<CAPTION>
PORTFOLIO COMPOSITION
AS A % OF NET ASSETS
JUNE 30, 2000
[PIE CHART]
<S> <C>
Common Stocks 59.9%
Fixed Income 36.9%
Cash 3.2%
</TABLE>
<TABLE>
<CAPTION>
DECEMBER 31, 1999
[PIE CHART]
<S> <C>
Common Stocks 56.2%
Fixed Income 42.7%
Cash 1.1%
</TABLE>
We appreciate your support of Columbia Balanced Fund.
GUY W. POPE, LEONARD A. APLET AND JEFFREY L. RIPPEY
ON BEHALF OF THE COLUMBIA INVESTMENT TEAM
17
<PAGE>
INVESTMENT REVIEW
--------------------------------------------------------------------------------
COLUMBIA U.S. GOVERNMENT SECURITIES FUND
----------------------------------------------
PERFORMANCE
For the first six months of 2000, Columbia U.S. Government Securities Fund
produced a 2.41% return. The Fund's performance lagged its benchmark, the
Merrill Lynch 1-3 Treasury Index, which returned 2.99% for the period.
MARKET CONDITIONS
Despite three interest rate hikes in 1999, U.S. economic growth appeared to be
accelerating as the year began. With low unemployment, improving productivity
and persistent strength in consumer spending, both investors and the Fed had
concerns that inflation was on the rise. Therefore, the Fed maintained its
tightening bias in an attempt to contain any developing inflationary pressures.
The Fed raised interest rates three times -- in February, in March and once more
in May -- to bring the federal funds target rate up 1.75% since the tightening
began in the summer of 1999.
As the federal funds rate climbed to 6.50%, short-term interest rates rose in
the market. The 2-year Treasury peaked at 6.91% on May 18 before closing at
6.36% on June 30th. With the 2-year Treasury currently yielding less than the
federal funds rate, the market seems to be anticipating that the Fed will hold
off on any further rate increases this year. We believe that this perception may
be premature and that the Fed could act again, especially if economic growth
accelerates. Therefore, we have maintained the portfolio's average maturity at
just over one year. As issues in the portfolio mature, we expect to continue
purchasing securities with shorter maturities during this period of rising
interest rates.
FUND DEVELOPMENTS
Recently, the Board of Directors of Columbia U.S. Government Securities Fund
approved a number of changes that are intended to increase the Fund's overall
investment flexibility and performance potential. A proxy statement requesting
shareholders to vote on the changes -- which include a new name, investment
objective and strategy -- was recently mailed to investors in the Fund.
Currently, the Fund's investment objective seeks preservation of capital and a
high level of income by investing at least 80% of its assets in direct
obligations of the U.S.
AVERAGE ANNUAL TOTAL RETURNS
AS OF JUNE 30, 2000
<TABLE>
<CAPTION>
MERRILL
CUSG 1-3
----- -------
<S> <C> <C>
1 Year 3.73% 4.91%
5 Years 4.88% 5.76%
10 Years 6.04% 6.51%
</TABLE>
-----------------
GROWTH OF $10,000
OVER 10 YEARS
[CHART]
<TABLE>
<CAPTION>
COLUMBIA MERRILL
U.S. LYNCH CONSUMER
GOVERNMENT 1-3 PRICE
SECURITIES TREASURY INDEX
FUND INDEX (INFLATION)
---------- -------- -----------
<S> <C> <C> <C>
6/30/90 $10,000 $10,000 $10,000
6/30/91 $11,002 $11,025 $10,470
6/30/92 $12,246 $12,174 $10,795
6/30/93 $13,149 $12,975 $11,118
6/30/94 $13,291 $13,184 $11,396
6/30/95 $14,171 $14,203 $11,738
6/30/96 $14,818 $14,978 $12,067
6/30/97 $15,693 $15,961 $12,344
6/30/98 $16,626 $17,048 $12,554
6/30/99 $17,331 $17,914 $12,805
6/30/00 $17,978 $18,793 $13,279
</TABLE>
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. THE MERRILL LYNCH 1-3
TREASURY INDEX REPRESENTS THE AVERAGE RETURN OF ALL TREASURY NOTES WITH 1- TO
3- YEAR MATURITIES.
18
<PAGE>
INVESTMENT REVIEW
--------------------------------------------------------------------------------
Government. If approved by shareholders, the Fund's new investment objective
would be to seek a high level of current income consistent with a high degree of
stability. The Fund would achieve this objective by investing primarily in high
quality, short-term fixed income instruments. This change would allow the Fund
to invest in a wider array of short-term, high quality bonds, including debt of
federal agencies, investment-grade corporate bonds, asset-backed securities and
mortgage-related securities, as well as some non-investment grade bonds (no more
than 10% of Fund assets). The intent is to generate substantially higher income
and potentially greater total return with only a small increase in risk.
Furthermore, the name of the Fund would be changed to Columbia Short Term Bond
Fund to better reflect the investment objective and strategy.
For investors living in high income tax states, a fund investing primarily in
government securities can provide relief from state taxes. However, the Fund's
Board believes that the potential yield advantage afforded by changing the
Fund's investment objective and strategy will, over the long-term, offset the
reduced state tax benefit. We anticipate that the Fund will continue to provide
some opportunity for state tax relief as it is expected that the Fund will
invest between 0% and 30% of its assets in U.S. Government obligations.
Another benefit of the proposed change in investment objective and strategy
would be lower expenses. While the investment advisory fee would remain at
0.50%, operating expenses (which were an additional 0.41% of net assets in 1999)
would be capped at 0.25%, for an overall lower fee of 0.75% of net assets. These
lower fees would further enhance the return potential for the Fund.
Both the Board and the Fund's current management believe that the proposed
changes to the Fund will be in the best interests of investors. Shareholders in
the Fund are encouraged to vote in favor of the proposal, and any questions
about the vote may be directed to Columbia at 1-800-547-1707. We look forward to
the results of the Special Meeting of Shareholders on September 15.
PORTFOLIO HIGHLIGHTS
<TABLE>
<CAPTION>
6/30/00 12/31/99
<S> <C> <C>
Current Yield 5.78% 5.26%
BASED ON THE 30 DAY PERIOD
ENDING ON EACH DATE SHOWN
Weighted Averages
Duration 1.07 years 1.33 years
Maturity 1.05 years 1.57 years
</TABLE>
--------------------
<TABLE>
<CAPTION>
PORTFOLIO COMPOSITION
AS A % OF NET ASSETS
JUNE 30, 2000
[PIE CHART]
<S> <C>
Treasury/Agency Obligations 96.5%
Cash 3.5%
</TABLE>
<TABLE>
<CAPTION>
DECEMBER 31, 1999
[PIE CHART]
<S> <C>
Treasury/Agency Obligations 96.4%
Cash 3.6%
</TABLE>
Thank you for your investment in Columbia U.S. Government Securities Fund.
JEFFREY L. RIPPEY
PORTFOLIO MANAGER
19
<PAGE>
INVESTMENT REVIEW
--------------------------------------------------------------------------------
COLUMBIA FIXED INCOME SECURITIES FUND
-------------------------------------------
SIX-MONTH PERFORMANCE
For the six months ended June 30, 2000, Columbia Fixed Income Securities Fund
returned 3.46%. The Fund, net of management fees and expenses, lagged its
benchmark, the Lehman Aggregate Bond Index, which returned 3.99% for the period.
FIXED INCOME ENVIRONMENT
Interest rates were volatile throughout the period. Rates fell during the first
quarter and then rebounded, peaking in mid-May just before the Federal Reserve
Board raised the federal funds target rate for the sixth time in 12 months. The
Fed has raised short-term rates a total of 1.75% since June 1999 in an effort to
slow economic growth and stave off inflation. Although the Consumer Price Index
(CPI) has risen from 1998's very low levels, the overall level of inflation does
not seem problematic. Much of the increase has been related to rising oil
prices.
Data released in June indicate that U.S. economic growth has finally begun to
slow, which is welcome news for the Fed and the financial markets. With
moderating growth and stable prices, the Fed would not be expected to raise
interest rates much above current levels.
For fixed income securities, the Fed's interest rate hikes had the effect of
creating an inverted yield curve, an unusual situation that may occur when
short-term rates are rising at the same time long-term rates are declining. We
believe that the implementation of the U.S. Treasury's buy back program of
long-term issues also contributed to the decline in long-term yields.
AVERAGE ANNUAL TOTAL RETURNS
AS OF JUNE 30, 2000
<TABLE>
<CAPTION>
LEHMAN
CFIS AGGREGATE
----- ---------
<S> <C> <C>
1 Year 3.84% 4.57%
5 Years 5.72% 6.25%
10 Years 7.68% 7.82%
</TABLE>
---------------------
GROWTH OF $10,000
OVER 10 YEARS
[CHART]
<TABLE>
<CAPTION>
COLUMBIA
FIXED LEHMAN
INCOME AGGREGATE
SECURITIES BOND CONSUMER PRICE
FUND INDEX INDEX (INFLATION)
---------- --------- -----------------
<S> <C> <C> <C>
6/30/90 $10,000 $10,000 $10,000
6/30/91 $11,020 $11,070 $10,470
6/30/92 $12,738 $12,625 $10,795
6/30/93 $14,360 $14,114 $11,118
6/30/94 $14,117 $13,930 $11,396
6/30/95 $15,872 $15,677 $11,738
6/30/96 $16,654 $16,464 $12,067
6/30/97 $18,041 $17,806 $12,344
6/30/98 $19,860 $19,683 $12,554
6/30/99 $20,190 $20,303 $12,805
6/30/00 $20,968 $21,227 $13,279
</TABLE>
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. THE LEHMAN AGGREGATE BOND
INDEX REPRESENTS AVERAGE MARKET-WEIGHTED PERFORMANCE OF U.S. TREASURY AND AGENCY
SECURITIES, INVESTMENT-GRADE CORPORATE BONDS AND MORTGAGE-BACKED SECURITIES AND
MATURITIES GREATER THAN ONE YEAR.
20
<PAGE>
INVESTMENT REVIEW
--------------------------------------------------------------------------------
The rally in long-term bonds initially hampered performance slightly as the Fund
was underweighted in long-term Treasuries. On the belief that long-term
Treasuries would continue to do well, we increased the Fund's weighting in those
issues. Throughout the period, Treasuries outperformed all other fixed income
securities. Because that sector was underrepresented in the portfolio, the Fund
did not capture the full benefit of its success. However, mortgage-backed and
asset-backed issues, which were the next best performing fixed income
categories, were overweighted in the Fund, relative to its benchmark.
Yield spreads between corporate bonds and Treasuries widened during the period,
causing corporate bonds to underperform. Therefore, we increased our weighting
to corporate bonds because we felt they would offer opportunity moving forward.
OUR FORECAST
We believe that higher interest rates will benefit corporate bonds and
mortgage-backed securities, which are emphasized in the portfolio and which
should contribute to an attractive yield on the Fund. If interest rates remain
in a trading range in the coming months, as we expect, the strong level of
income in the Fund should have a favorable impact on returns.
PORTFOLIO COMPOSITION
AS A % OF NET ASSETS
<TABLE>
<CAPTION>
6/30/00 12/31/99
<S> <C> <C>
Corporate Bonds 39.2 36.0
Collateralized Mortgage Obligations 22.8 22.8
Mortgage Pass Throughs 15.7 20.2
Treasury/Agency Obligations 11.5 12.3
Asset-Backed Securities 8.4 5.1
Cash 2.4 3.6
</TABLE>
--------------------
<TABLE>
<CAPTION>
PORTFOLIO QUALITY
AS A % OF PORTFOLIO HOLDINGS
JUNE 30, 2000
[PIE CHART]
<S> <C>
Treasury/Agency 43.5%
Aaa 17.3%
Aa 5.0%
A 15.0%
Baa 14.3%
Ba 4.9%
</TABLE>
<TABLE>
<CAPTION>
DECEMBER 31, 1999
[PIE CHART]
<S> <C>
Treasury/Agency Obligations 48.2%
Aaa 15.4%
Aa 3.9%
A 15.0%
Baa 13.4%
Ba 4.1%
</TABLE>
AS RATED BY MOODY'S INVESTORS SERVICE, INC.
Thank you for your interest in Columbia Fixed Income Securities Fund.
LEONARD A. APLET AND JEFFREY L. RIPPEY
PORTFOLIO MANAGERS
21
<PAGE>
INVESTMENT REVIEW
--------------------------------------------------------------------------------
COLUMBIA NATIONAL MUNICIPAL BOND FUND
-----------------------------------------
FIRST HALF RESULTS
For the six months ended June 30, 2000, Columbia National Municipal Bond Fund
returned 3.92%, compared to the Lipper General Municipal Debt Funds Index at
4.03%.
MUNICIPALS IN HIGH DEMAND
Interest rates were mixed in the first half of 2000, with yields on shorter
maturities generally up, and yields on longer maturities ending lower. By the
end of the first quarter, it was apparent that economic growth was not slowing
and was perhaps even accelerating from 1999's strong pace. The Federal Reserve
responded by taking more aggressive action to raise short rates during April and
May in hopes of slowing growth to a more sustainable pace and keeping inflation
in check. In June, bond markets rallied as leading economic indicators began to
weaken, signaling that the Fed may not need to raise rates much further.
After underperforming for much of 1999, municipal bonds have generally
outperformed their taxable counterparts this year. Municipal bonds were under
severe selling pressure in late 1999 as investors sold bonds to take tax losses.
Municipals had become extremely cheap: longer issues were available at rates
approaching 6.0%, comparable to yields on long Treasury securities. Supply in
2000 was substantially lighter than in 1999 as higher interest rates stalled the
issuance of refunding debt. As demand strengthened, the lower availability of
new bonds drove prices higher. In fact, severe supply shortages have occurred in
some states, including California, where issuance is down 23% from 1999, and
Pennsylvania, where issuance is down 70%. The Fund did not own bonds from either
state at the end of the period, favoring similar quality issues from other
states that offered much higher yields.
SEEKING HIGHER YIELDS
Portfolio purchases generally focused on intermediate to longer maturity issues,
somewhat lengthening the portfolio's average maturity. Municipals with 15- and
20-year maturities, in particular, offered substantial value especially in
comparison to 30-year bonds. The Fund maintained an intermediate duration
between 8 and 12 years. The longer-term issues in the Fund aided performance
during the period, as those bond prices moved higher. As always, we seek
opportunities to execute trades that improve the quality or the call features of
the Fund's holdings without impacting average maturity.
AVERAGE ANNUAL TOTAL RETURNS
AS OF JUNE 30, 2000
<TABLE>
<CAPTION>
LEHMAN LIPPER
CNMF MUNI* GENERAL
---- ------- --------
<S> <C> <C> <C>
1 Year 2.58% 3.24% 1.27%
Since Inception -0.13% 1.20% -0.55%
</TABLE>
---------------------
GROWTH OF $10,000
SINCE INCEPTION
[CHART]
<TABLE>
<CAPTION>
LIPPER GENERAL LEHMAN BROTHERS
COLUMBIA NATIONAL MUNICIPAL DEBT MUNICIPAL BOND
MUNICIPAL BOND FUND FUNDS INDEX INDEX*
------------------- --------------- ----------------
<S> <C> <C> <C>
2/24/99 $10,000 $10,000 $10,000
3/31/99 $9,920 $10,005 $10,014
6/30/99 $9,733 $9,803 $9,837
9/30/99 $9,675 $9,678 $9,797
12/31/99 $9,607 $9,543 $9,721
3/31/00 $9,867 $9,811 $10,005
6/30/00 $9,983 $9,928 $10,156
</TABLE>
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. THE LEHMAN BROTHERS
MUNICIPAL BOND INDEX IS AN UNMANAGED INDEX CONSIDERED REPRESENTATIVE OF THE
BROAD MARKET FOR INVESTMENT-GRADE, TAX-EXEMPT BONDS WITH A MATURITY OF AT LEAST
ONE YEAR, ISSUED ON OR AFTER JANUARY 1, 1991, WITH A DEAL SIZE GREATER THAN $50
MILLION AND A MATURITY SIZE OF AT LEAST $5 MILLION, AND HAVING A FIXED RATE
COUPON. THE LIPPER GENERAL MUNICIPAL DEBT FUNDS INDEX REPRESENTS AVERAGE
PERFORMANCE OF THE LARGEST GENERAL MUNICIPAL DEBT FUNDS TRACKED BY LIPPER
ANALYTICAL SERVICES. *PERFORMANCE SINCE 3/1/99.
22
<PAGE>
INVESTMENT REVIEW
--------------------------------------------------------------------------------
The Fund consists of investment grade issues, including some non-rated issues
that we believe are equivalent to investment-grade credits. Over time, we
believe these non-rated issues will contribute to strong returns because they
offer much higher yields with a comparable level of credit risk. Many issues are
not rated simply because the size of the issue is too small relative to the cost
of having the bonds rated. Such issues include general obligation bonds with
unlimited taxing power to pay down debt and bonds that pay down principal from
essential service revenues, like water and sewer billings. Nevertheless,
concerns that Fed rate hikes may slow economic growth too much have resulted in
increased demand for higher quality bonds this year. This has hurt demand for
even good quality non-rated issues, such as those held in the portfolio,
relative to their rated counterparts.
Approximately 10% of the Fund's assets are invested in bonds of entities that
provide health care. These issues have been hurt this year by cutbacks in
Medicare payments and calls for new legislation, which could potentially raise
operating costs of the health care business. We have been very selective about
purchasing issues in this sector; the higher yields available on these bonds
should have a favorable impact on performance over time, particularly as
investors begin to discriminate between stronger and weaker credits. Fund
holdings include hospitals or continuing care centers with a dominant regional
presence and strong management teams, such as Tuality Hospital in Oregon and
Bingham Memorial Hospital in Idaho.
PRICES MAY RISE
The outlook for municipal bonds appears positive. Fed tightening appears to be
near an end, and it seems likely that interest rates have already peaked for
this cycle. If economic growth continues to moderate as we expect and inflation
remains stable, municipal bond prices may increase further. The after-tax yields
on municipal bonds currently offer excellent value compared to taxable
investments, particularly U.S. Government debt.
TOP 10 STATES
AS A % OF NET ASSETS
<TABLE>
<CAPTION>
6/30/00 12/31/99
<S> <C> <C>
Oregon 18.2 11.6
Washington 15.3 14.1
Texas 9.4 15.4
Illinois 7.4 7.7
Michigan 4.4 4.6
New York 4.2 3.5
Alaska 3.5 3.6
Mississippi 3.3 3.4
Oklahoma 2.8 1.0
Kentucky 2.5 0.6
</TABLE>
----------------------
<TABLE>
<CAPTION>
PORTFOLIO QUALITY
AS A % OF PORTFOLIO HOLDINGS
JUNE 30, 2000
[PIE CHART]
<S> <C>
Aaa 41.7%
Aa 18.1%
A 15.1%
Baa 9.0%
Not Rated 16.1%
</TABLE>
<TABLE>
<CAPTION>
DECEMBER 31, 1999
[PIE CHART]
<S> <C>
Aaa 50.6%
Aa 20.2%
A 12.2%
Baa 7.4%
Not Rated 9.6%
</TABLE>
AS RATED BY MOODY'S INVESTORS SERVICE, INC.
Thank you for your interest in Columbia National Municipal Bond Fund.
GRETA R. CLAPP
PORTFOLIO MANAGER
23
<PAGE>
INVESTMENT REVIEW
--------------------------------------------------------------------------------
COLUMBIA OREGON MUNICIPAL BOND FUND
--------------------------------------------
PERFORMANCE FOR THE PERIOD
Columbia Oregon Municipal Bond Fund rose 3.57% for the six months ended June 30,
2000. The Fund performed in line with its peers, represented by the Lipper
Oregon Municipal Debt Funds average, which returned 4.02% for the period. The
Fund was hurt by its intermediate average maturity, while competitors with
longer maturities benefited from increases in long bond prices.
SHORT RATES MOVE HIGHER
Interest rates were mixed in the first half of 2000, as yields rose on shorter
maturity issues and declined on longer maturities. Midway through the period,
economic growth clearly was not slowing, and was perhaps even accelerating from
1999's strong pace. In response, the Federal Reserve took more aggressive action
by increasing short rates in April and May. The Fed hoped to slow demand to a
more sustainable pace and to keep inflationary pressures in check. In June, bond
markets rallied as leading economic indicators began to weaken, signaling that
the Fed may not need to raise rates much further.
After poor performance in 1999, municipal bonds have generally outperformed
their taxable counterparts in the first half of 2000. In late 1999, municipal
bonds were under severe selling pressure as investors sold bonds to take tax
losses. Municipals had become extremely cheap: longer issues were available at
rates approaching 6.0%, comparable to yields on long Treasury securities. Supply
in 2000 has been substantially lighter than in 1999 because higher interest
rates have stalled the issuance of refunding debt. As demand strengthened, the
lower availability of new bonds drove prices higher. Through June 30, issuance
in Oregon is down roughly 40% from 1999.
VALUE IN LONGER ISSUES
In trading activity during the first half of 2000, we focused on selling shorter
maturity issues in favor of longer, higher yielding positions, which lengthened
the average maturity of the Fund. During the period, intermediate-term
municipals with 15- and 20-year maturities offered substantial value,
particularly compared to long 30-year issues. The Fund maintained an
intermediate maturity between 8 and 12 years. The longer-term issues in the Fund
aided performance during the period, as those bond prices moved higher. The Fund
tends to have a shorter average maturity relative to its peers, resulting in
underperformance during periods when long bond prices move higher. However, we
strongly believe that an intermediate average maturity performs best over time
and interest rate cycles. We continue to seek opportunities to execute trades
that
AVERAGE ANNUAL TOTAL RETURNS
AS OF JUNE 30, 2000
<TABLE>
<CAPTION>
LEHMAN LIPPER
CMBF G.O. OR
----- ------ ------
<S> <C> <C> <C>
1 Year 2.37% 3.60% 1.15%
5 Years 4.89% 5.86% 4.79%
10 Years 5.99% 6.89% 6.02%
</TABLE>
---------------------
GROWTH OF $10,000
OVER 10 YEARS
[CHART]
<TABLE>
<CAPTION>
COLUMBIA
OREGON LEHMAN LIPPER
MUNICIPAL GENERAL OREGON
BOND OBLIGATION MUNICIPAL
FUND BOND INDEX DEBT FUNDS
--------- ---------- ----------
<S> <C> <C> <C>
6/30/90 $10,000 $10,000 $10,000
6/30/91 $10,885 $10,828 $10,848
6/30/92 $11,922 $12,048 $11,994
6/30/93 $13,218 $13,454 $13,330
6/30/94 $13,144 $13,534 $13,154
6/30/95 $14,089 $14,646 $14,239
6/30/96 $14,878 $15,591 $15,046
6/30/97 $15,936 $16,882 $16,131
6/29/98 $17,159 $18,266 $17,444
6/30/99 $17,476 $18,798 $17,697
6/30/00 $17,888 $19,477 $17,899
</TABLE>
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. THE LEHMAN GENERAL
OBLIGATION BOND INDEX REPRESENTS AVERAGE MARKET-WEIGHTED PERFORMANCE OF GENERAL
OBLIGATION SECURITIES THAT HAVE BEEN ISSUED IN THE LAST FIVE YEARS WITH
MATURITIES GREATER THAN ONE YEAR. THE LIPPER OREGON MUNICIPAL DEBT FUNDS AVERAGE
MEASURES PERFORMANCE OF ALL OREGON MUNICIPAL BOND FUNDS TRACKED BY LIPPER
ANALYTICAL SERVICES, INC.
24
<PAGE>
INVESTMENT REVIEW
--------------------------------------------------------------------------------
improve the quality or the call features of the Fund's holdings without
impacting average maturity.
SELECTIVE PURCHASING
The Fund consists primarily of investment-grade securities, in addition to some
non-rated issues that we believe are equivalent to investment-grade credits.
Over time, we believe these non-rated issues will contribute to strong returns
because they offer higher yields with a comparable level of credit risk. Many
issues are not rated simply because the size of the issue is too small relative
to the cost of having the bonds rated. Such issues include general obligation
bonds with unlimited taxing power to pay down debt and bonds that pay down
principal from essential service revenues, like water and sewer billings.
Nevertheless, concerns that Fed rate hikes may slow economic growth too much
have resulted in increased demand for higher quality bonds this year. This has
hurt demand for even good quality non-rated issues, such as those held in the
portfolio, relative to their rated counterparts.
Approximately 12% of the Fund's assets are invested in bonds of entities that
provide health care. These issues have been hurt this year by cutbacks in
Medicare payments and calls for new legislation, which could potentially raise
operating costs of the health care business. We have been very selective about
purchasing issues in this sector; the higher yields available on these bonds
have a favorable impact on performance over time, particularly as investors
begin to discriminate between stronger and weaker credits. Holdings in the Fund
include hospitals or continuing care centers with a dominant regional presence
and strong management team, such as Tuality Hospital in Hillsboro and St.
Charles Medical Center in Bend.
PRICE IMPROVEMENTS EXPECTED
The outlook for municipal bonds appears positive. Fed tightening appears to be
near an end, and it seems likely that interest rates have already peaked for
this cycle. If economic growth continues to moderate as we expect and inflation
remains stable, municipal bond prices may increase further. The after-tax yields
on municipal bonds currently offer excellent value compared to taxable
investments, particularly U.S. Government debt.
PORTFOLIO COMPOSITION
AS A % OF NET ASSETS
<TABLE>
<CAPTION>
6/30/00 12/31/99
<S> <C> <C>
Revenue 36.2 29.0
Insured Revenue 22.8 23.4
Insured General Obligation 15.2 17.0
General Obligation 12.9 15.7
State General Obligation 5.5 6.0
Other Bonds 2.7 2.8
Cash 1.8 1.9
U.S. Territories 1.5 1.3
Pre-Refunded Bonds 1.4 2.9
</TABLE>
-----------------
<TABLE>
<CAPTION>
PORTFOLIO QUALITY
AS A % OF PORTFOLIO HOLDINGS
JUNE 30, 2000
[PIE CHART]
<S> <C>
Aaa 41.2%
Aa 31.2%
A 15.4%
Baa 3.5%
Not Rated 8.7%
</TABLE>
<TABLE>
<CAPTION>
DECEMBER 31, 1999
[PIE CHART]
<S> <C>
Aaa 44.2%
Aa 29.9%
A 15.2%
Baa 2.5%
Not Rated 8.2%
</TABLE>
AS RATED BY MOODY'S INVESTORS SERVICE, INC.
We appreciate your continued confidence in Columbia Oregon Municipal Bond Fund.
GRETA R. CLAPP
PORTFOLIO MANAGER
25
<PAGE>
INVESTMENT REVIEW
--------------------------------------------------------------------------------
COLUMBIA HIGH YIELD FUND
-----------------------------------
FUND PERFORMANCE
For the first six months of 2000, Columbia High Yield Fund produced a return of
1.50%. In comparison, the Lipper High Yield Bond Fund Index returned -1.91% and
the Salomon BB returned 0.28% for the same period.
THE MARKET ENVIRONMENT
Federal Reserve Board tightening policy took a toll on the high yield market in
the first half of 2000. With the U.S. economy in its longest period of expansion
ever, the Fed feared that low unemployment and strong consumer spending would
lead to inflation. As a result, the Fed raised its federal funds target rate
three times in an effort to slow growth. These rate increases raised concerns
that the economy might slow too much and fall into a recession, where the credit
quality for bonds would deteriorate.
The high yield market experienced increased pressure from other factors as well.
For instance, banks tightened the availability of credit to borrowers. Default
rates remained at relatively high levels throughout the period, and rating
agencies downgraded securities considerably more than they upgraded issues. The
high yield market also suffered from reduced liquidity due to decreasing capital
commitments by dealers. In addition, asset flows into high yield bond funds have
been negative this year, placing greater pressure on the sector.
In this difficult market environment, we upgraded the credit quality of our
portfolio and added names that we believed would perform well and provide
attractive yields.
CONTRIBUTORS TO PERFORMANCE
To help lift Fund performance, we focused on industries that we believed would
respond well in an uncertain economic environment. We overweighted the cable
sector, where we felt cash flow would continue to grow as companies expanded
their digital product offerings. We purchased
AVERAGE ANNUAL TOTAL RETURNS
AS OF JUNE 30, 2000
<TABLE>
<CAPTION>
SALOMON LIPPER
CHYF BB HYBF
---- ------- -------
<S> <C> <C> <C>
1 Year 2.93% 1.82% -1.04%
5 Years 7.91% 7.93% 6.89%
Since Inception 7.40% 7.90% 6.74%
</TABLE>
---------------------
GROWTH OF $10,000
SINCE INCEPTION
[CHART]
<TABLE>
<CAPTION>
COLUMBIA LIPPER HIGH YIELD
HIGH YIELD FUND BOND FUND INDEX SALOMON BB
--------------- ----------------- ----------
<S> <C> <C> <C>
10/1/93 $10,000 $10,000 $10,000
12/31/93 $10,112 $10,498 $10,185
12/31/94 $10,019 $10,113 $10,048
12/31/95 $11,935 $11,870 $12,321
12/31/96 $13,060 $13,410 $13,429
12/31/97 $14,719 $15,177 $15,142
12/31/98 $15,640 $15,165 $16,361
12/31/99 $16,012 $15,890 $16,728
6/30/00 $16,250 $15,582 $16,774
</TABLE>
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. THE SOLOMON BB INDEX
MEASURES THE TOTAL RETURN OF BONDS WITH A MATURITY OF AT LEAST ONE YEAR AND
INCLUDES WITH A MATURITY OF AT LEAST ONE YEAR AND INCLUDES BONDS RATED BB+, BB,
OR BB- BY STANDARD & POOR'S OR BONDS RATED BA1, BA2 OR BA3 BY MOODY'S INVESTORS
SERVICE. THE LIPPER HIGH YIELD BOND FUND INDEX REPRESENTS EQUALLY WEIGHTED
PERFORMANCE OF THE 30 LARGEST MUTUAL FUNDS WITHIN ITS CATEGORY.
26
<PAGE>
INVESTMENT REVIEW
--------------------------------------------------------------------------------
issues in Shaw Communications and Charter Communications, both of which provide
high speed Internet services along with traditional cable services. We also
added to our holdings in Rogers Communications, a cellular and wireless
communications company that provides cable television and high speed Internet
services.
The portfolio was also overweighted in the energy sector, which produced some
top performers. Oil and gas prices increased throughout the period, resulting in
stronger earnings and cash flow. We benefited from our holdings in Santa Fe
Snyder and Vintage Petroleum, companies that explore for, develop, acquire and
produce crude oil and natural gas in the U.S. and abroad.
The Fund also beat its benchmark during the period by limiting exposure to
issuers in the steel and finance industry, which struggled in the period.
However, the Fund did experience disappointing performance from some holdings,
such as Del Webb. A retirement community builder, Del Webb was hurt by rising
interest and mortgage rates. Fund performance was also affected by unique events
at specific companies. For example, Westpoint Stevens bonds traded down in
response to a proposed leveraged management buyout, and Flooring America filed
for bankruptcy in the middle of June. Our small weighting in these companies,
however, had little impact on Fund performance.
THE OUTLOOK
We believe that the key to an improving market environment for high yield issues
is the ability of the Fed to engineer a "soft landing," an environment of slow
and steady growth. We think that the Fed's tightening policy may be close to an
end, with perhaps one more interest rate increase on the horizon.
The Fund continues to seek a high level of income for shareholders through
exposure to non-investment-grade bonds.
<TABLE>
<CAPTION>
TOP 5 SECTORS
AS A % OF NET ASSETS
6/30/00 12/31/99
<S> <C> <C>
Business & Consumer Services 27.4 27.9
Consumer Cyclical 15.9 17.4
Telecommunications 11.2 11.8
Energy 10.5 10.5
Consumer Staples 7.8 6.0
</TABLE>
-----------------
<TABLE>
<CAPTION>
PORTFOLIO QUALITY
AS A % OF PORTFOLIO HOLDINGS
JUNE 30, 2000
[PIE CHART]
<S> <C>
Baa 12.3%
Ba 46.4%
B 40.8%
C 0.5%
</TABLE>
<TABLE>
<CAPTION>
DECEMBER 31, 1999
[PIE CHART]
<S> <C>
Baa 8.3%
Ba 53.4%
B 37.0%
Caa 1.3%
</TABLE>
AS RATED BY MOODY'S INVESTORS SERVICE, INC.
Thank you for your confidence and interest in Columbia High Yield Fund.
JEFFREY L. RIPPEY AND KURT M. HAVNAER
PORTFOLIO MANAGERS
27
<PAGE>
INVESTMENT REVIEW
--------------------------------------------------------------------------------
COLUMBIA DAILY INCOME FUND
---------------------------------
SIX-MONTH PERFORMANCE
For the six months ended June 30, 2000, Columbia Daily Income Company posted a
return of 2.80%. The Fund's performance stayed well ahead of inflation, which
rose 2.10% as measured by the Consumer Price Index (CPI).
INFLATION REMAINS STABLE
U.S. economic growth was strong during the first half of 2000. This robust
environment, however, generated concerns of rising inflation. Although the CPI
rose during the first half of the year, it has not reached levels considered
problematic. Nonetheless, the ever-vigilant Federal Reserve Board, intent on
slowing economic growth to a more sustainable pace, announced two interest rate
increases during the first quarter. A third increase was announced in May,
bringing the federal funds target rate to 6.50%. Since its tightening policy
began last summer, the Fed has raised interest rates a total of 1.75%.
Columbia Daily Income Company benefited during this period of rising short-term
interest rates. As issues in the Fund matured, proceeds were reinvested in
higher yielding issues. After starting the year with a 7-day yield of 5.58%, the
Fund's compound yield had risen to 6.21% by the close of the second quarter.
LOOKING AHEAD
While the U.S. economy continued to expand in the second quarter, we expect that
data will indicate a slower pace of growth from previous periods. More moderate
economic growth and steady inflation would likely dissuade the Fed from raising
short-term rates much further. However, in the current environment, we believe
the Fund will continue to produce compelling yields for shareholders seeking a
liquid, low risk investment. As always, the Fund invests in high quality,
short-term debt instruments with an average maturity of 30 to 50 days.
AVERAGE ANNUAL TOTAL RETURNS
AS OF JUNE 30, 2000
<TABLE>
<CAPTION>
CDIC CPI
----- -----
<S> <C> <C>
1 Year 5.32% 3.70%
5 Years 5.08% 2.50%
10 Years 4.71% 2.88%
</TABLE>
-----------------
GROWTH OF $10,000
OVER 10 YEARS
[CHART]
<TABLE>
<CAPTION>
COLUMBIA DAILY CONSUMER PRICE
INCOME COMPANY INDEX (INFLATION)
-------------- -----------------
<S> <C> <C>
6/30/90 $10,000 $10,000
6/30/91 $10,699 $10,470
6/30/92 $11,171 $10,795
6/30/93 $11,467 $11,118
6/30/94 $11,779 $11,396
6/30/95 $12,370 $11,738
6/30/96 $13,008 $12,067
6/30/97 $13,657 $12,344
6/30/98 $14,365 $12,554
6/30/99 $15,049 $12,805
6/30/00 $15,848 $13,279
</TABLE>
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. AN INVESTMENT IN THE FUND
IS NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY
OTHER GOVERMENTAL AGENCY. ALTHOUGH THE FUND SEEKS TO PRESERVE THE VALUE OF YOUR
INVESTMENT AT $1 PER SHARE, IT IS POSSIBLE TO LOSE MONEY BY INVESTING IN THE
FUND.
-------------------
PORTFOLIO HIGHLIGHTS
<TABLE>
<CAPTION>
6/30/00 12/31/99
<S> <C> <C>
Current Yield 6.02% 5.43%
Compound Yield 6.21% 5.58%
BASED ON THE 7 DAY PERIOD
ENDING ON EACH DATE SHOWN
Weighted Average Maturity 44 days 38 days
</TABLE>
Thank you for your continued confidence in Columbia Daily Income Company.
LEONARD A. APLET
PORTFOLIO MANAGER
28
<PAGE>
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
------------------------ ------------------------
-- COLUMBIA COMMON STOCK FUND --
--------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 2000
(UNAUDITED) 1999 1998 1997 1996 1995
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $28.90 $24.40 $22.02 $19.26 $18.59 $15.16
-----------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) ............................ (0.02) 0.03 0.09 0.29 0.25 0.26
Net realized and unrealized gains on investments ........ 2.03 6.25 5.68 4.58 3.61 4.38
-----------------------------------------------------------------------------------------------------------------------------------
Total from investment operations ...................... 2.01 6.28 5.77 4.87 3.86 4.64
-----------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income .................... -- (0.03) (0.13) (0.27) (0.23) (0.26)
Distributions from capital gains ........................ -- (1.75) (3.26) (1.84) (2.96) (0.95)
-----------------------------------------------------------------------------------------------------------------------------------
Total distributions ................................... -- (1.78) (3.39) (2.11) (3.19) (1.21)
-----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $30.91 $28.90 $24.40 $22.02 $19.26 $18.59
-----------------------------------------------------------------------------------------------------------------------------------
Total return ............................................... 6.96% (1) 25.76% 26.28% 25.37% 20.71% 30.84%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) ................... $1,005,001 $959,910 $797,147 $783,906 $536,760 $358,523
Ratio of expenses to average net assets .................... 0.75% (2) 0.77% 0.80% 0.77% 0.76% 0.80%
Ratio of net investment income (loss) to average net assets (0.13%)(2) 0.09% 0.56% 1.37% 1.32% 1.68%
Portfolio turnover rate .................................... 99% (2) 97% 141% 90% 111% 75%
</TABLE>
(1) Not annualized.
(2) Annualized
--------------------------------------------------------------------------------
--------------------------- ---------------------------
-- COLUMBIA GROWTH FUND --
--------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 2000
(UNAUDITED) 1999 1998 1997 1996 1995
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $48.91 $42.51 $34.34 $30.74 $29.84 $24.84
------------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) ........................ (0.05) (0.03) 0.03 0.19 0.19 0.31
Net realized and unrealized gains on investments .... 5.16 11.09 10.39 7.90 6.04 7.86
------------------------------------------------------------------------------------------------------------------------------------
Total from investment operations .................. 5.11 11.06 10.42 8.09 6.23 8.17
------------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income ................ -- (0.00)* (0.08) (0.17) (0.17) (0.29)
Distributions from capital gains .................... -- (4.66) (2.17) (4.32) (5.16) (2.88)
------------------------------------------------------------------------------------------------------------------------------------
Total distributions ............................... -- (4.66) (2.25) (4.49) (5.33) (3.17)
------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $54.02 $48.91 $42.51 $34.34 $30.74 $29.84
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN ........................................... 10.45%(1) 26.02% 30.34% 26.32% 20.80% 32.98%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) ............... $2,352,166 $2,160,739 $1,753,024 $1,324,918 $1,064,100 $848,731
Ratio of expenses to average net assets ................ 0.65% (2) 0.65% 0.68% 0.71% 0.71% 0.75%
Ratio of net investment income (loss) to average net
assets ................................................ (0.20%)(2) (0.07%) 0.21% 0.55% 0.63% 1.14%
Portfolio turnover rate ................................ 101% (2) 118% 105% 96% 75% 95%
</TABLE>
* Amount represents less than $0.01 per share.
(1) Not annualized.
(2) Annualized
--------------------------------------------------------------------------------
See Accompanying Notes to Financial Statements
29
<PAGE>
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
-------------------- ---------------------
-- COLUMBIA INTERNATIONAL STOCK FUND --
---------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 2000
(UNAUDITED) 1999 1998 1997 1996 1995
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $22.81 $15.45 $13.70 $13.86 $13.07 $12.43
-----------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) ............................ 0.01 (0.05) (0.00)* 0.03 0.03 0.02
Net realized and unrealized gains (losses) on investments
and foreign currency transactions ..................... (2.75) 9.00 1.76 1.56 2.13 0.62
-----------------------------------------------------------------------------------------------------------------------------------
Total from investment operations ...................... (2.74) 8.95 1.76 1.59 2.16 0.64
-----------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income .................... -- -- -- -- (0.23) --
Distributions from capital gains ........................ -- (1.59) (0.01) (1.75) (1.14) --
-----------------------------------------------------------------------------------------------------------------------------------
Total distributions ................................... -- (1.59) (0.01) (1.75) (1.37) --
-----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $20.07 $22.81 $15.45 $13.70 $13.86 $13.07
-----------------------------------------------------------------------------------------------------------------------------------
Total return ............................................... -12.01%(1) 57.93% 12.83% 11.47% 16.59% 5.15%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) ................... $225,799 $239,223 $134,193 $146,281 $125,510 $100,873
Ratio of expenses to average net assets .................... 1.39%(2) 1.48% 1.56% 1.62% 1.54% 1.54%
Ratio of net investment income (loss) to average net assets 0.07%(2) (0.35%) (0.02%) 0.19% 0.22% 0.15%
Portfolio turnover rate .................................... 93%(2) 94% 74% 122% 129% 156%
</TABLE>
* Amount represents less than $0.01 per share.
(1) Not annualized.
(2) Annualized
--------------------------------------------------------------------------------
------------------- ----------------------------------
-- COLUMBIA SPECIAL FUND --
---------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 2000
(UNAUDITED) 1999 1998 1997 1996 1995
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $29.93 $23.62 $20.26 $19.85 $21.44 $18.69
------------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) ........................ (0.08) (0.16) (0.03) 0.01 (0.06) 0.03
Net realized and unrealized gains on investments .... 6.62 8.74 3.40 2.50 2.85 5.45
------------------------------------------------------------------------------------------------------------------------------------
Total from investment operations .................. 6.54 8.58 3.37 2.51 2.79 5.48
------------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income ................ -- -- (0.01) -- -- (0.02)
Distributions from capital gains .................... -- (2.27) (0.00)* (2.10) (4.38) (2.71)
------------------------------------------------------------------------------------------------------------------------------------
Total distributions ............................... -- (2.27) (0.01) (2.10) (4.38) (2.73)
------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $36.47 $29.93 $23.62 $20.26 $19.85 $21.44
------------------------------------------------------------------------------------------------------------------------------------
Total return ........................................... 21.85% (1) 36.33% 16.64% 12.64% 13.07% 29.53%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) ............... $1,151,216 $918,322 $969,359 $1,249,718 $1,585,284 $1,384,415
Ratio of expenses to average net assets ................ 1.00% (2) 1.09% 1.03% 0.98% 0.94% 0.98%
Ratio of net investment income (loss) to average
net assets ............................................. (0.46%)(2) (0.64%) (0.09%) 0.04% (0.29%) 0.16%
Portfolio turnover rate ................................ 165% (2) 135% 135% 166% 150% 183%
</TABLE>
* Amount represents less than $0.01 per share.
(1) Not annualized.
(2) Annualized
--------------------------------------------------------------------------------
See Accompanying Notes to Financial Statements
30
<PAGE>
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
-------------------------- -------------------------
-- COLUMBIA SMALL CAP FUND --
-----------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 2000
(UNAUDITED) 1999 1998 1997 1996(1)
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $27.26 $17.43 $16.65 $12.99 $12.00
---------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss ................................ (0.08) (0.14) (0.09) (0.08) (0.00)*
Net realized and unrealized gains on investments ... 5.00 10.45 0.87 4.51 0.99
---------------------------------------------------------------------------------------------------------------------
Total from investment operations ................. 4.92 10.31 0.78 4.43 0.99
---------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Distributions from capital gains ................... -- (0.48) (0.00)* (0.77) --
---------------------------------------------------------------------------------------------------------------------
Total distributions .............................. -- (0.48) (0.00) (0.77) --
---------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ........................ $32.18 $27.26 $17.43 $16.65 $12.99
---------------------------------------------------------------------------------------------------------------------
TOTAL RETURN .......................................... 18.05% (2) 59.15% 4.69% 34.10% 7.62% (2)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) .............. $468,215 $290,374 $160,472 $96,431 $21,061
Ratio of expenses to average net assets ............... 1.22% (3) 1.30% 1.34% 1.46% 1.61% (3)
Ratio of net investment loss to average net assets .... (0.57%)(3) (0.84%) (0.68%) (0.81%) (0.00%)(3)
Portfolio turnover rate ............................... 138% (3) 188% 158% 172% 33% (3)
</TABLE>
* Amount represents less than $0.01 per share.
(1) From inception of operations on September 11, 1996.
(2) Not annualized
(3) Annualized
--------------------------------------------------------------------------------
--------------------- ---------------------
-- COLUMBIA REAL ESTATE EQUITY FUND --
--------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 2000
(UNAUDITED) 1999 1998 1997 1996 1995
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $14.57 $15.76 $18.80 $16.16 $12.71 $11.72
----------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................................... 0.37 0.82 0.75 0.79 0.77 0.78
Net realized and unrealized gains (losses) on investments 1.68 (1.19) (3.04) 3.15 3.94 1.12
----------------------------------------------------------------------------------------------------------------------------------
Total from investment operations ...................... 2.05 (0.37) (2.29) 3.94 4.71 1.90
----------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income .................... (0.36) (0.71) (0.66) (0.62) (0.52) (0.49)
Distributions from capital gains ........................ -- -- -- (0.51) (0.53) (0.14)
Return of capital ....................................... -- (0.11) (0.09) (0.17) (0.21) (0.28)
----------------------------------------------------------------------------------------------------------------------------------
Total distributions ................................... (0.36) (0.82) (0.75) (1.30) (1.26) (0.91)
----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ............................. $16.26 $14.57 $15.76 $18.80 $16.16 $12.71
----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN ............................................... 14.20%(1) -2.45% -12.33% 24.74% 38.30% 16.86%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) ................... $338,775 $241,716 $164,172 $151,554 $68,073 $21,587
Ratio of expenses to average net assets .................... 1.01%(2) 0.99% 1.01% 1.02% 1.06% 1.18%
Ratio of net investment income to average net assets ....... 5.07%(2) 5.66% 4.60% 4.87% 6.23% 6.71%
Portfolio turnover rate .................................... 6%(2) 29% 6% 34% 46% 54%
</TABLE>
(1) Not annualized.
(2) Annualized
--------------------------------------------------------------------------------
See Accompanying Notes to Financial Statements
31
<PAGE>
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
-------------------------- --------------------------
-- COLUMBIA BALANCED FUND --
----------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 2000
(UNAUDITED) 1999 1998 1997 1996 1995
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $24.72 $23.17 $21.42 $20.32 $20.08 $17.28
---------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................................ 0.34 0.69 0.72 0.84 0.76 0.73
Net realized and unrealized gains on investments ..... 1.01 2.21 3.52 2.92 1.58 3.54
---------------------------------------------------------------------------------------------------------------------------------
Total from investment operations ................... 1.35 2.90 4.24 3.76 2.34 4.27
---------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income ................. (0.34) (0.69) (0.73) (0.83) (0.76) (0.73)
Distributions from capital gains ..................... -- (0.66) (1.76) (1.83) (1.34) (0.74)
---------------------------------------------------------------------------------------------------------------------------------
Total distributions ................................ (0.34) (1.35) (2.49) (2.66) (2.10) (1.47)
---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $25.73 $24.72 $23.17 $21.42 $20.32 $20.08
---------------------------------------------------------------------------------------------------------------------------------
Total return ............................................ 5.45%(1) 12.70% 20.07% 18.74% 11.78% 25.08%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) ................ $1,088,479 $1,040,940 $975,381 $792,378 $672,593 $486,767
Ratio of expenses to average net assets ................. 0.65%(2) 0.66% 0.67% 0.68% 0.66% 0.69%
Ratio of net investment income to average net assets .... 2.74%(2) 2.85% 3.22% 3.83% 3.82% 4.05%
Portfolio turnover rate ................................. 120%(2) 133% 128% 149% 133% 108%
</TABLE>
(1) Not annualized.
(2) Annualized
--------------------------------------------------------------------------------
----------------- -----------------
-- COLUMBIA U.S. GOVERNMENT SECURITIES FUND --
----------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 2000
(UNAUDITED) 1999 1998 1997 1996 1995
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $8.20 $8.39 $8.29 $8.24 $8.34 $7.99
--------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................................... 0.19 0.33 0.38 0.41 0.41 0.45
Net realized and unrealized gains (losses) on investments (0.00)* (0.18) 0.14 0.05 (0.10) 0.35
--------------------------------------------------------------------------------------------------------------------------------
Total from investment operations ...................... 0.19 0.15 0.52 0.46 0.31 0.80
--------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income .................... (0.19) (0.33) (0.38) (0.41) (0.41) (0.45)
Distributions from capital gains ........................ -- (0.01) (0.04) -- -- --
--------------------------------------------------------------------------------------------------------------------------------
Total distributions ................................... (0.19) (0.34) (0.42) (0.41) (0.41) (0.45)
--------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ............................. $8.20 $8.20 $8.39 $8.29 $8.24 $8.34
--------------------------------------------------------------------------------------------------------------------------------
Total return ............................................... 2.41%(1) 1.80% 6.43% 5.76% 3.85% 10.21%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) ................... $35,585 $38,072 $40,578 $37,837 $40,776 $41,842
Ratio of expenses to average net assets .................... 0.91%(2) 0.91% 0.89% 0.87% 0.80% 0.79%
Ratio of net investment income to average net assets ....... 4.79%(2) 4.09% 4.55% 4.99% 4.99% 5.45%
Portfolio turnover rate .................................... 71%(2) 211% 182% 184% 179% 253%
</TABLE>
* Amount represents less than $0.01 per share.
(1) Not annualized.
(2) Annualized
--------------------------------------------------------------------------------
See Accompanying Notes to Financial Statements
32
<PAGE>
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
------------------ -------------------
-- COLUMBIA FIXED INCOME SECURITIES FUND --
-------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 2000
(UNAUDITED) 1999 1998 1997 1996 1995
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $12.44 $13.42 $13.41 $13.08 $13.51 $12.16
---------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................................... 0.40 0.78 0.83 0.85 0.85 0.88
Net realized and unrealized gains (losses) on investments 0.02 (0.98) 0.14 0.36 (0.43) 1.35
---------------------------------------------------------------------------------------------------------------------------------
Total from investment operations ...................... 0.42 (0.20) 0.97 1.21 0.42 2.23
---------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income .................... (0.40) (0.78) (0.83) (0.85) (0.85) (0.88)
Distributions from capital gains ........................ -- (0.00)* (0.13) (0.03) -- --
---------------------------------------------------------------------------------------------------------------------------------
Total distributions ................................... (0.40) (0.78) (0.96) (0.88) (0.85) (0.88)
---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ............................. $12.46 $12.44 $13.42 $13.41 $13.08 $13.51
---------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN ............................................... 3.46%(1) -1.50% 7.44% 9.56% 3.37% 18.91%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) ................... $381,415 $397,147 $422,330 $381,333 $356,421 $316,259
Ratio of expenses to average net assets .................... 0.67%(2) 0.64% 0.65% 0.66% 0.64% 0.65%
Ratio of net investment income to average net assets ....... 6.53%(2) 6.03% 6.15% 6.43% 6.53% 6.80%
Portfolio turnover rate .................................... 130%(2) 155% 107% 196% 178% 137%
</TABLE>
* Amount represents less than $0.01 per share.
(1) Not annualized.
(2) Annualized
--------------------------------------------------------------------------------
------------------ -------------------
-- COLUMBIA NATIONAL MUNICIPAL BOND FUND --
-------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 2000
(UNAUDITED) 1999(1)
--------------------------------------------------------------------------------------------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $9.28 $10.00
--------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................................... 0.22 0.34
Net realized and unrealized gains (losses) on investments 0.14 (0.72)
--------------------------------------------------------------------------------------------
Total from investment operations ...................... 0.36 (0.38)
--------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income .................... (0.22) (0.34)
--------------------------------------------------------------------------------------------
Total distributions ................................... (0.22) (0.34)
--------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ............................. $9.42 $9.28
--------------------------------------------------------------------------------------------
TOTAL RETURN ............................................... 3.92%(2) -3.93%(2)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) ................... $10,764 $10,135
Ratio of expenses to average net assets .................... 0.65%(3) 0.65%(3)
Ratio of expenses to average net assets before
reimbursements .......................................... 1.38%(3) 1.72%(3)
Ratio of net investment income to average net assets ....... 4.73%(3) 4.21%(3)
Portfolio turnover rate .................................... 26%(3) 12%(3)
</TABLE>
(1) From inception of operations on February 10, 1999.
(2) Not annualized.
(3) Annualized
--------------------------------------------------------------------------------
See Accompanying Notes to Financial Statements
33
<PAGE>
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
------------------ ---------------------
-- COLUMBIA OREGON MUNICIPAL BOND FUND --
-----------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 2000
(UNAUDITED) 1999 1998 1997 1996 1995
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $11.56 $12.46 $12.47 $12.15 $12.37 $11.48
----------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................................... 0.29 0.56 0.58 0.60 0.61 0.63
Net realized and unrealized gains (losses) on investments 0.12 (0.88) 0.10 0.39 (0.16) 0.96
----------------------------------------------------------------------------------------------------------------------------------
Total from investment operations ...................... 0.41 (0.32) 0.68 0.99 0.45 1.59
----------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income .................... (0.29) (0.56) (0.58) (0.60) (0.61) (0.63)
Distributions from capital gains ........................ -- (0.02) (0.11) (0.07) (0.06) (0.07)
----------------------------------------------------------------------------------------------------------------------------------
Total distributions ................................... (0.29) (0.58) (0.69) (0.67) (0.67) (0.70)
----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ............................. $11.68 $11.56 $12.46 $12.47 $12.15 $12.37
----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN ............................................... 3.57%(1) -2.65% 5.58% 8.36% 3.77% 14.15%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) ................... $412,066 $409,919 $462,809 $409,148 $375,667 $383,796
Ratio of expenses to average net assets .................... 0.58%(2) 0.57% 0.58% 0.57% 0.56% 0.57%
Ratio of net investment income to average net assets ....... 4.98%(2) 4.64% 4.60% 4.87% 5.00% 5.22%
Portfolio turnover rate .................................... 24%(2) 28% 17% 17% 19% 21%
</TABLE>
(1) Not annualized.
(2) Annualized
--------------------------------------------------------------------------------
------------------------- -------------------------
-- COLUMBIA HIGH YIELD FUND --
-------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 2000
(UNAUDITED) 1999 1998 1997 1996 1995
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $9.32 $9.84 $10.04 $9.94 $9.88 $9.04
--------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................................... 0.37 0.74 0.76 0.81 0.81 0.82
Net realized and unrealized gains (losses) on investments (0.24) (0.51) (0.15) 0.40 0.07 0.84
--------------------------------------------------------------------------------------------------------------------------------
Total from investment operations ...................... 0.13 0.23 0.61 1.21 0.88 1.66
--------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income .................... (0.37) (0.74) (0.76) (0.81) (0.81) (0.82)
Distributions from capital gains ........................ -- (0.01) (0.05) (0.30) (0.01) --
--------------------------------------------------------------------------------------------------------------------------------
Total distributions ................................... (0.37) (0.75) (0.81) (1.11) (0.82) (0.82)
--------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $9.08 $9.32 $9.84 $10.04 $9.94 $9.88
--------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN ............................................... 1.50%(1) 2.38% 6.26% 12.70% 9.43% 19.12%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) ................... $78,935 $71,678 $57,524 $39,278 $28,818 $23,471
Ratio of expenses to average net assets .................... 0.93%(2) 0.91% 0.95% 1.00% 0.93% 1.00%
Ratio of expenses to average net assets before voluntary
reimbursements .......................................... 0.93%(2) 0.91% 0.95% 1.02% 1.00% 1.06%
Ratio of net investment income to average net assets ....... 8.23%(2) 7.71% 7.52% 8.05% 8.29% 8.62%
Portfolio turnover rate .................................... 42%(2) 49% 79% 124% 62% 52%
</TABLE>
(1) Not annualized.
(2) Annualized
--------------------------------------------------------------------------------
See Accompanying Notes to Financial Statements
34
<PAGE>
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
---------------------- -----------------------
-- COLUMBIA DAILY INCOME COMPANY --
-----------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 2000
(UNAUDITED) 1999 1998 1997 1996 1995
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD ..................... $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
---------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................................. 0.028 0.046 0.050 0.050 0.048 0.053
---------------------------------------------------------------------------------------------------------------------------------
Total from investment operations .................... 0.028 0.046 0.050 0.050 0.048 0.053
---------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income ............ (0.028) (0.046) (0.050) (0.050) (0.048) (0.053)
---------------------------------------------------------------------------------------------------------------------------------
Total distributions ................................. (0.028) (0.046) (0.050) (0.050) (0.048) (0.053)
---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ........................... $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
---------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN ............................................. 2.80%(1) 4.71% 5.09% 5.11% 4.96% 5.49%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) ................. $1,124,515 $1,165,289 $1,109,141 $1,169,096 $889,800 $800,656
Ratio of expenses to average net assets .................. 0.61%(2) 0.64% 0.62% 0.63% 0.62% 0.64%
Ratio of net investment income to average net assets ..... 5.55%(2) 4.61% 4.97% 4.99% 4.84% 5.34%
</TABLE>
(1) Not annualized.
(2) Annualized
--------------------------------------------------------------------------------
See Accompanying Notes to Financial Statements
35
<PAGE>
SCHEDULE OF INVESTMENTS
--------------------------------------------------------------------------------
-- COLUMBIA COMMON STOCK FUND, INC. --
--------------------------------------
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
SHARES VALUE
------------- --------------
<S> <C> <C>
COMMON STOCKS (99.1%)
BANKS (6.2%)
Bank of New York Co., Inc. ............. 200,600 $ 9,327,900
Capital One Financial Corp. ......... 96,900 4,324,162
Citigroup, Inc. ..................... 591,400 35,631,850
Washington Mutual, Inc. ............. 444,900 12,846,488
---------------
62,130,400
---------------
BROADCASTING (3.8%)
*America Online, Inc. ................ 240,400 12,681,100
*AT&T Corp. - Liberty Media Group
(Class A) .......................... 433,264 10,506,652
*Clear Channel Communications, Inc. .. 121,200 9,090,000
*USA Networks, Inc. .................. 287,800 6,223,675
---------------
38,501,427
---------------
BROKERS/MONEY MANAGERS (3.7%)
American Express Co. ................ 339,300 17,686,013
Merrill Lynch & Co. ................. 21,900 2,518,500
Morgan Stanley Dean Witter & Co. .... 144,450 12,025,462
Schwab (Charles) Corp. .............. 160,200 5,386,725
---------------
37,616,700
---------------
CABLE (0.6%)
*Charter Communications, Inc.
(Class A) .......................... 355,200 5,838,600
---------------
COMPUTERS (5.0%)
*Apple Computer, Inc. ................ 103,600 5,426,050
Compaq Computer Corp. ............... 348,650 8,912,366
*Dell Computer Corp. ................. 413,050 20,368,528
International Business
Machines Corp. ..................... 45,100 4,941,268
*Sun Microsystems, Inc. .............. 119,650 10,880,672
---------------
50,528,884
---------------
ELECTRICAL EQUIPMENT/DIVERSIFIED INDUSTRIAL (7.7%)
Corning, Inc. ....................... 34,700 9,364,663
General Electric Co. ................ 730,800 38,732,400
Honeywell International, Inc. ....... 179,600 6,050,275
Tyco International Ltd. ............. 497,566 23,572,189
---------------
77,719,527
---------------
ENTERTAINMENT (1.3%)
Time Warner, Inc. ................... 168,850 12,832,600
---------------
HEALTH CARE (12.5%)
Merck & Co., Inc. ................... 280,550 21,497,143
Pfizer, Inc. ........................ 1,400,987 67,247,376
Pharmacia Corp. ..................... 330,100 17,062,044
Schering-Plough Corp. ............... 394,000 19,897,000
---------------
125,703,563
---------------
INSURANCE - PROPERTY & CASUALTY (2.7%)
American International
Group, Inc. ........................ 231,025 27,145,437
---------------
INTERNATIONAL INTEGRATED (3.1%)
Exxon Mobil Corp. ................... 284,532 22,335,762
Royal Dutch Petroleum Co. ........... 137,800 8,483,312
---------------
30,819,074
---------------
MATERIALS (0.7%)
International Paper Co. ............. 122,250 3,644,578
Union Carbide Corp. ................. 78,150 3,868,425
---------------
7,513,003
---------------
MEDICAL DEVICES (0.7%)
*Guidant Corp. ....................... 143,650 7,110,675
---------------
MORTGAGE/FINANCE COMPANIES (1.4%)
Fannie Mae .......................... 144,000 7,515,000
Freddie Mac ......................... 159,900 6,475,950
---------------
13,990,950
---------------
OIL SERVICES (5.0%)
*BJ Services Co. ..................... 178,900 11,181,250
*Global Marine, Inc. ................. 291,200 8,208,200
*Grant Prideco, Inc. ................. 8,500 212,500
*Nabors Industries, Inc. ............. 310,850 12,919,703
*Noble Drilling Corp. ................ 227,300 9,361,919
Transocean Sedco Forex, Inc. ........ 37,300 1,993,219
*Weatherford International, Inc. ..... 159,000 6,330,187
---------------
50,206,978
---------------
PERIPHERALS (1.2%)
*EMC Corp. ........................... 161,300 12,410,019
---------------
RETAIL (4.3%)
*Best Buy Co., Inc. .................. 233,000 14,737,250
Home Depot, Inc. .................... 168,500 8,414,468
Wal-Mart Stores, Inc. ............... 357,500 20,600,938
---------------
43,752,656
---------------
</TABLE>
See Accompanying Notes to Financial Statements
36
<PAGE>
<TABLE>
<CAPTION>
SHARES VALUE
------------- --------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
SEMICONDUCTORS (13.1%)
*Altera Corp. ........................ 67,250 $ 6,855,297
*Applied Materials, Inc. ............. 204,100 18,496,563
*Atmel Corp. ......................... 129,950 4,791,906
Intel Corp. ......................... 390,950 52,265,128
*Micron Technology, Inc. ............. 467,950 41,208,847
Texas Instruments, Inc. ............. 115,100 7,905,931
---------------
131,523,672
---------------
SERVICES (2.5%)
*Celestica, Inc. ..................... 128,500 6,376,813
*Computer Sciences Corp. ............. 244,900 18,290,969
---------------
24,667,782
---------------
SOFTWARE (5.9%)
*Amdocs Ltd. ......................... 245,300 18,826,775
*Microsoft Corp. ..................... 253,750 20,300,000
*Oracle Corp. ........................ 236,600 19,889,188
---------------
59,015,963
---------------
TELECOMMUNICATION SERVICES (7.1%)
AT&T Corp. .......................... 167,675 5,302,722
*Global Crossing Ltd. ................ 114,100 3,002,256
GTE Corp. ........................... 191,500 11,920,875
*McLeodUSA, Inc. (Class A) ........... 103,700 2,145,294
*Nextel Communications, Inc. ......... 43,500 2,661,656
SBC Communications, Inc. ............ 170,000 7,352,500
*Sprint Corp. (PCS Group) ............ 164,500 9,787,750
US West, Inc. ....................... 338,350 29,013,513
---------------
71,186,566
---------------
TELECOMMUNICATION EQUIPMENT (10.6%)
*Cisco Systems, Inc. ................. 554,000 35,213,625
*JDS Uniphase Corp. .................. 70,600 8,463,175
Lucent Technologies, Inc. ........... 405,635 24,033,874
Motorola, Inc. ...................... 187,850 5,459,391
Nokia Corp. ......................... 136,250 6,803,983
Nortel Networks Corp. ............... 188,600 12,871,950
*Tellabs, Inc. ....................... 195,000 13,345,313
---------------
106,191,311
---------------
Total Common Stocks
(Cost $681,362,553) ................ 996,405,787
---------------
REPURCHASE AGREEMENT (1.0%)
J.P. Morgan Securities, Inc.
6.64% dated 06/30/2000, due 07/03/2000
in the amount of $9,891,443.
Collateralized by U.S. Treasury Notes
4.875% to 6.625%
due 03/31/2001 to 06/30/2003
U.S. Treasury Bonds 6.375% to 12.375%
due 05/15/2004 to 08/15/2027
U.S. Treasury Bill 5.80%
due 09/21/2000
(Cost $9,889,643) .................. 9,889,643 9,889,643
---------------
TOTAL INVESTMENTS (100.1%)
(Cost $691,252,196) ..................... 1,006,295,430
OTHER ASSETS LESS LIABILITIES (-0.1%) ..... (1,294,471)
---------------
NET ASSETS (100.0%) ....................... $1,005,000,959
===============
</TABLE>
* Non-income producing.
See Accompanying Notes to Financial Statements
37
<PAGE>
SCHEDULE OF INVESTMENTS
--------------------------------------------------------------------------------
-- COLUMBIA GROWTH FUND, INC. --
--------------------------------------
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
SHARES VALUE
------------- --------------
<S> <C> <C>
COMMON STOCKS (97.9%)
BANKS (2.2%)
Citigroup, Inc. ..................... 850,350 $ 51,233,587
---------------
BROADCASTING (5.0%)
*America Online, Inc. ................ 551,100 29,070,525
*AT&T Corp. - Liberty Media Group
(Class A) .......................... 1,674,400 40,604,200
*Clear Channel Communications, Inc. .. 415,081 31,131,075
*USA Networks, Inc. .................. 731,000 15,807,875
---------------
116,613,675
---------------
BROKERS/MONEY MANAGERS (3.9%)
American Express Co. ................ 350,700 18,280,238
Goldman Sachs Group, Inc. ........... 185,900 17,637,262
Merrill Lynch & Co., Inc. ........... 240,000 27,600,000
Morgan Stanley Dean Witter & Co. .... 350,000 29,137,500
---------------
92,655,000
---------------
CABLE (0.8%)
*Charter Communications, Inc.
(Class A) .......................... 654,100 10,751,769
*Comcast Corp. (Class A Special) ..... 225,000 9,112,500
---------------
19,864,269
---------------
COMPUTERS (5.3%)
*Apple Computer, Inc. ................ 233,900 12,250,512
Compaq Computer Corp. ............... 724,150 18,511,084
*Dell Computer Corp. ................. 1,022,800 50,436,825
International Business
Machines Corp. ...................... 103,500 11,339,719
*Sun Microsystems, Inc. .............. 353,400 32,137,313
---------------
124,675,453
---------------
ELECTRICAL EQUIPMENT/DIVERSIFIED INDUSTRIAL (7.1%)
Corning, Inc. ....................... 125,600 33,896,300
General Electric Co. ................ 1,035,000 54,855,000
Tyco International Ltd. ............. 1,650,400 78,187,700
---------------
166,939,000
---------------
ENTERTAINMENT (1.2%)
Time Warner, Inc. ................... 372,000 28,272,000
---------------
HEALTH CARE (10.9%)
*Amgen, Inc. ......................... 450,000 31,612,500
Cardinal Health, Inc. ............... 290,200 21,474,800
Pfizer, Inc. ........................ 2,773,775 133,141,200
Pharmacia Corp. ..................... 591,800 30,588,662
Schering-Plough Corp. ............... 786,400 39,713,200
---------------
256,530,362
---------------
INSURANCE - PROPERTY & CASUALTY (2.4%)
American International Group, Inc. .. 482,396 56,681,530
---------------
MEDICAL DEVICES (1.2%)
*Guidant Corp. ....................... 248,800 12,315,600
PE Corp.-PE Biosystems Group ........ 250,000 16,468,750
---------------
28,784,350
---------------
MORTGAGE/FINANCE COMPANIES (1.5%)
Fannie Mae .......................... 347,600 18,140,375
Freddie Mac ......................... 417,700 16,916,850
---------------
35,057,225
---------------
OIL SERVICES (2.6%)
*BJ Services Co. ..................... 406,550 25,409,375
*Nabors Industries, Inc. ............. 376,550 15,650,359
*Noble Drilling Corp. ................ 380,050 15,653,309
Transocean Sedco Forex, Inc. ........ 85,000 4,542,188
---------------
61,255,231
---------------
PERIPHERALS (2.5%)
*EMC Corp. ........................... 776,200 59,718,887
---------------
RETAIL (6.3%)
*Best Buy Co., Inc. .................. 593,600 37,545,200
*Kohl's Corp. ........................ 705,000 39,215,625
Lowe's Cos., Inc. ................... 951,000 39,050,437
Wal-Mart Stores, Inc. ............... 564,100 32,506,263
---------------
148,317,525
---------------
</TABLE>
See Accompanying Notes to Financial Statements
38
<PAGE>
SCHEDULE OF INVESTMENTS
--------------------------------------------------------------------------------
-- COLUMBIA GROWTH FUND, INC. --
----------------------------------
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
SHARES VALUE
------------- --------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
SEMICONDUCTORS (16.6%)
*Altera Corp. ........................ 115,900 $ 11,814,556
*Atmel Corp. ......................... 426,600 15,730,875
*Broadcom Corp. ...................... 200,000 43,787,500
*Flextronics International Ltd. ...... 1,023,500 70,301,656
Intel Corp. ......................... 902,800 120,693,075
*KLA-Tencor Corp. .................... 335,000 19,618,438
*Micron Technology, Inc. ............. 1,077,900 94,922,569
Texas Instruments, Inc. ............. 187,600 12,885,775
---------------
389,754,444
---------------
SERVICES (3.5%)
*Computer Sciences Corp. ............. 480,100 35,857,469
*Sanmina Corp. ....................... 100,000 8,550,000
*Solectron Corp. ..................... 930,200 38,952,125
---------------
83,359,594
---------------
SOFTWARE (6.8%)
*Amdocs Ltd. ......................... 627,800 48,183,650
*Comverse Technology, Inc. ........... 150,000 13,950,000
*Microsoft Corp. ..................... 592,500 47,400,000
*Oracle Corp. ........................ 453,600 38,130,750
*Veritas Software Corp. .............. 100,000 11,301,563
---------------
158,965,963
---------------
TELECOMMUNICATION SERVICES (6.9%)
Enron Corp. ......................... 100,000 6,450,000
*Global Crossing Ltd. ................ 770,800 20,281,675
*Nextel Communications, Inc. ......... 690,500 42,249,969
*Sprint Corp. (PCS Group) ............ 373,000 22,193,500
US West, Inc. ....................... 819,900 70,306,425
---------------
161,481,569
---------------
TELECOMMUNICATIONS EQUIPMENT (11.2%)
*Cisco Systems, Inc. ................. 1,396,600 88,771,387
*JDS Uniphase Corp. .................. 276,600 33,157,425
Lucent Technologies, Inc. ........... 1,022,860 60,604,455
Nokia Corp. ......................... 408,600 20,404,463
Nortel Networks Corp. ............... 397,200 27,108,900
*Tellabs, Inc. ....................... 491,250 33,619,922
---------------
263,666,552
---------------
Total Common Stocks
(Cost $1,457,250,388) .............. 2,303,826,216
---------------
REPURCHASE AGREEMENT (2.1%)
J.P. Morgan Securities, Inc.
6.64% dated 06/30/2000, due 07/03/2000
in the amount of $49,223,071.
Collateralized by U.S. Treasury Notes
4.875% to 6.625%
due 03/31/2001 to 06/30/2003
U.S. Treasury Bonds 6.375% to 12.375%
due 05/15/2004 to 08/15/2027
U.S. Treasury Bill
5.80% due 09/21/2000
(Cost $49,214,114) ................. 49,214,114 49,214,114
---------------
TOTAL INVESTMENTS (100.0%)
(Cost $1,506,464,502) ................... 2,353,040,330
OTHER ASSETS LESS LIABILITIES ............. (873,981)
---------------
NET ASSETS (100.0%) ....................... $2,352,166,349
===============
</TABLE>
* Non-income producing.
See Accompanying Notes to Financial Statements
39
<PAGE>
SCHEDULE OF INVESTMENTS
--------------------------------------------------------------------------------
-- COLUMBIA INTERNATIONAL STOCK FUND, INC. --
---------------------------------------------
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
SHARES VALUE
------------- --------------
<S> <C> <C>
COMMON STOCKS (93.0%)
AUSTRALIA (1.6%)
AMP Ltd. (Insurance) ................ 65,000 $ 663,465
CSL Ltd. (Pharmaceuticals) .......... 21,300 422,483
Fairfax (John) Holdings Ltd.
(Media/Photography) ................ 355,000 1,002,228
*SecureNet Ltd. (Software/
Computer Services) ................. 260,000 1,439,329
---------------
3,527,505
---------------
BRAZIL (0.0%)
Cia de Tecidos Norte de Minas SA
(Household Goods/Textiles) ......... 1,973,067 114,734
---------------
CANADA (4.0%)
*Anderson Exploration Ltd.
(Oil/Gas) .......................... 90,500 1,643,046
Bombardier, Inc. (Class B)
(Diversified Industrials) .......... 65,500 1,777,117
*C-MAC Industries, Inc.
(Electronic/Electrical
Equipment) ......................... 34,100 1,611,021
Nortel Networks Corp.
(Information Technology
Hardware) .......................... 31,600 2,190,314
*Precision Drilling Corp.
(Oil/Gas) .......................... 45,000 1,737,230
---------------
8,958,728
---------------
FINLAND (1.7%)
Nokia Oyj, ADR (Information
Technology Hardware) ............... 43,900 2,192,256
Sonera Oyj (Telecommunication
Services) .......................... 34,000 1,556,271
---------------
3,748,527
---------------
FRANCE (8.9%)
Accor SA (Leisure/Entertainment/
Hotels) ............................ 20,500 843,621
Alcatel (Information
Technology Hardware) ............... 43,500 2,864,698
Aventis SA (Pharmaceuticals) ........ 14,800 1,084,606
AXA (Insurance) ..................... 11,400 1,803,108
BNP Paribas (Banks) ................. 13,900 1,343,100
Cap Gemini SA (Software/
Computer Services) ................. 9,400 1,662,482
Coflexip SA, ADR (Oil/Gas) .......... 21,700 1,312,850
France Telecom SA, ADR
(Telecommunication Services) ....... 10,000 1,425,000
Groupe Danone SA (Food
Producers/Processors) .............. 9,100 1,212,520
Lafarge SA (Construction/
Building Materials) ................ 17,200 1,342,103
LVMH Moet Hennessy Louis
Vuitton SA (Household
Goods/Textiles) .................... 2,900 1,200,643
Schneider Electric SA
(Engineering/Machinery) ............ 18,600 1,301,573
Total Fina Elf SA (Oil/Gas) ......... 11,300 1,739,630
Vivendi SA (Diversified
Industrials) ....................... 11,300 1,001,425
---------------
20,137,359
---------------
GERMANY (6.1%)
*ADVA AG Optical Networking
(Information Technology
Hardware) .......................... 1,240 704,169
Allianz AG (Insurance) .............. 2,900 1,046,080
Bayerische Hypo- und
Vereinsbank AG (Banks) ............. 13,400 869,100
ce Consumer Electronic AG
(Electronic/Electrical
Equipment) ......................... 4,550 656,418
Deutsche Bank AG (Banks) ............ 14,600 1,206,405
Deutsche Telekom AG
(Telecommunication Services) ....... 17,200 985,967
*Direkt Anlage Bank AG
(Specialty/Other Finance) .......... 14,500 528,183
Dresdner Bank AG (Banks) ............ 23,000 950,250
EM.TV & Merchandising AG
(Media/Photography) ................ 19,600 1,162,060
*Epcos AG (Information
Technology Hardware) ............... 17,600 1,762,870
Muenchener
Rueckversicherungs-
Gesellschaft AG (Insurance) ........ 4,300 1,356,117
Siemens AG (Electronic/
Electrical Equipment) .............. 16,600 2,514,190
---------------
13,741,809
---------------
</TABLE>
See Accompanying Notes to Financial Statements
40
<PAGE>
<TABLE>
<CAPTION>
SHARES VALUE
------------- --------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
HONG KONG (0.6%)
Asia Satellite Telecommunications Holdings
Ltd. (Telecommunication Services) .. 91,000 $ 311,115
Esprit Holdings Ltd. (General
Retailers) ......................... 337,000 350,185
Giordano International Ltd.
(General Retailers) ................ 500,000 760,100
---------------
1,421,400
---------------
IRELAND (1.1%)
CRH plc (Construction/Building
Materials) ......................... 35,500 644,868
*Parthus Technologies plc
(Information Technology
Hardware) .......................... 700,000 1,976,398
---------------
2,621,266
---------------
ITALY (3.3%)
Assicurazioni Generali S.p.A
(Insurance) ........................ 34,400 1,183,820
Banca Intesa S.p.A (Banks) .......... 265,000 1,191,383
Eni S.p.A (Oil/Gas) ................. 194,900 1,130,317
Mediaset S.p.A (Media/
Photography) ....................... 29,300 449,387
Riunione Adriatica Di Sicurta S.p.A
(Insurance) ........................ 106,500 1,174,033
San Paolo-IMI S.p.A (Banks) ......... 70,250 1,251,868
Telecom Italia S.p.A, ADR
(Telecommunication Services) ....... 8,800 1,210,550
---------------
7,591,358
---------------
JAPAN (27.1%)
Alpha Systems, Inc. (Software/
Computer Services) ................. 3,300 435,107
Asahi Bank Ltd., The (Banks) ........ 500,000 2,107,721
Banyu Pharmaceutical Co., Ltd.
(Pharmaceuticals) .................. 125,000 3,065,883
Citizen Electronics Co., Ltd.
(Electronic/Electrical Equipment) .. 9,000 986,753
Daibiru Corp. (Real Estate) ......... 69,000 558,905
Daimei Telecom Engineering Corp.
(Engineering/Machinery) ............ 73,000 755,519
Drake Beam Morin-Japan, Inc.
(Support Services) ................. 5,000 694,697
Fancl Corp. (Personal Care/
Household Products) ................ 5,700 543,593
Fuji Bank, Ltd. (Banks) ............. 190,000 1,447,427
Fuji Machine Mfg. Co., Ltd.
(Engineering/Machinery) ............ 20,000 1,052,915
Fujisawa Pharmaceutical Co., Ltd.
(Pharmaceuticals) .................. 20,000 810,953
Future System Consulting Corp.
(Software/Computer Services) ....... 20 429,105
Isetan Co., Ltd.
(General Retailers) ................ 260,000 3,194,662
Japan Lifeline Co., Ltd. (Health) ... 17,400 230,242
Japan Telecom Co., Ltd.
(Telecommunication Services) ....... 27 1,173,896
Katokichi Co., Ltd.
(Food Producers/Processors) ........ 23,000 583,687
Keyence Corp. (Electronic/
Electrical Equipment) .............. 5,060 1,673,889
Kyocera Corp. (Electronic/
Electrical Equipment) .............. 7,500 1,275,265
Makino Milling Machine Co., Ltd.
(Engineering/Machinery) ............ 88,000 865,016
Marubeni Corp. (Construction/
Building Materials) ................ 280,000 965,960
Matsushita Electric
Industrial Co., Ltd. (Electronic/
Electrical Equipment) .............. 40,000 1,039,683
Mitsubishi Electric Corp.
(Information Technology Hardware) .. 300,000 3,255,152
Mitsubishi Estate Co., Ltd.
(Real Estate) ...................... 130,000 1,533,438
Mitsui Fudosan Co., Ltd.
(Real Estate) ...................... 140,000 1,521,717
Murata Mfg. Co., Ltd. (Electronic/
Electrical Equipment) .............. 10,000 1,438,543
NEC Corp. (Electronic/Electrical
Equipment) ......................... 100,000 3,147,403
Nikko Securities Co., Ltd.
(Specialty/Other Finance) .......... 135,000 1,339,773
Nippon Kanzai Co., Ltd.
(Construction/Building Materials) .. 42,000 770,121
</TABLE>
See Accompanying Notes to Financial Statements
41
<PAGE>
<TABLE>
<CAPTION>
SHARES VALUE
------------- --------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
NTT Docomo, Inc.
(Telecommunication Services) ....... 100 $ 2,712,627
OBIC Co., Ltd. (Software/
Computer Services) ................. 2,400 1,088,831
Oji Paper Co., Ltd. (Forestry/Paper) 250,000 1,724,928
Q.P. Corp. (Food Producers/Processors) 180,000 1,505,650
Rohm Co., Ltd. (Electronic/
Electrical Equipment) .............. 7,000 2,051,011
Sankei Building Co., Ltd., The
(Real Estate) ...................... 29,000 112,106
Sanwa Bank Ltd., The (Banks) ........ 280,000 2,238,910
Seven-Eleven Japan Co., Ltd.
(General Retailers) ................ 10,000 838,362
Shimamura Co., Ltd. (General
Retailers) ......................... 20,000 2,342,122
Sony Corp. (Electronic/
Electrical Equipment) .............. 25,000 2,339,286
Sumitomo Bank Ltd., The (Banks) ..... 50,000 614,358
Taisho Pharmaceutical Co., Ltd.
(Pharmaceuticals) .................. 34,000 1,221,155
THK Co., Ltd. (Engineering/Machinery) 44,000 2,229,080
Toyota Motor Corp. (Automobiles) .... 30,000 1,369,546
*Trend Micro, Inc. (Software/
Computer Services) ................. 4,000 661,616
Yamada Denki Co., Ltd.
(General Retailers) ................ 7,000 629,197
Yokowo Co., Ltd. (Information
Technology Hardware) ............... 25,000 639,169
---------------
61,214,979
---------------
KOREA (0.6%)
Samsung Electronics, GDR
(Information Technology Hardware) .. 14,000 1,279,250
---------------
MALAYSIA (0.3%)
Star Cruises plc (Leisure/
Entertainment/Hotels) .............. 124,000 669,600
---------------
NETHERLANDS (6.9%)
Aegon NV (Insurance) ................ 29,600 1,057,509
*ASM Lithography Holding NV
(Information Technology Hardware) .. 42,700 1,884,138
*CompleTel Europe NV
(Telecommunication Services) ....... 50,000 600,000
*Equant NV (Telecommunication Services) 30,000 1,290,000
Gucci Group NV (Household
Goods/Textiles) .................... 10,800 1,023,300
Heineken NV (Restaurants/Pubs/
Breweries) ......................... 23,800 1,454,420
ING Groep NV (Insurance) ............ 15,000 1,018,022
Koninklijke KPN NV
(Telecommunication Services) ....... 25,000 1,122,748
Koninklijke Philips Electronics
NV (Electronic/Electrical Equipment) 52,300 2,476,632
Royal Dutch Petroleum Co. (Oil/Gas) 20,900 1,304,248
STMicroelectronics NV
(Information Technology Hardware) .. 36,000 2,310,750
---------------
15,541,767
---------------
PORTUGAL (0.4%)
*PT Multimedia - Servicos de
Telecomunicacoes e Multimedia
S.G.P.S., SA (Media/Photography) ... 16,300 812,501
*PT Multimedia.com - Servicos de
Acesso a Internet, S.G.P.S., SA
(Media/Photography) ................ 16,300 125,469
---------------
937,970
---------------
SPAIN (1.4%)
Banco Bilbao Vizcaya Argentaria,
SA (Banks) ......................... 84,600 1,269,163
*Telefonica SA, ADR
(Telecommunication Services) ....... 30,241 1,937,314
---------------
3,206,477
---------------
SWEDEN (3.3%)
Atlas Copco AB (Class A)
(Engineering/Machinery) ............ 51,300 994,330
Skandia Forsakrings AB
(Insurance) ........................ 176,000 4,675,555
Telefonaktiebolaget LM
Ericsson AB, ADR
(Telecommunication Services) ....... 87,000 1,740,000
---------------
7,409,885
---------------
</TABLE>
See Accompanying Notes to Financial Statements
42
<PAGE>
<TABLE>
<CAPTION>
SHARES VALUE
------------- --------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
SWITZERLAND (5.7%)
*ABB Ltd. (Registered) (Electronic/
Electrical/Equipment) .............. 17,800 $ 2,137,338
Charles Voegele Holding AG
(Bearer) (General Retailers) ....... 6,000 1,184,454
Cie Financiere Richemont AG
Units (Class A) (Bearer)
(Household Goods/Textiles) ......... 235 635,168
Julius Baer Holding Ltd. (Bearer) (Banks) 250 991,658
Nestle SA (Registered) (Food
Producers/Processors) .............. 1,000 2,007,915
Sulzer AG (Registered)
(Engineering/Machinery) ............ 1,700 1,134,334
Swiss RE (Registered) (Insurance) ... 610 1,247,336
UBS AG (Registered) (Banks) ......... 12,400 1,822,559
Zurich Allied AG (Registered)
(Insurance) ........................ 3,300 1,635,728
---------------
12,796,490
---------------
UNITED KINGDOM (18.0%)
*ARM Holdings plc
(Electronic/Electrical
Equipment) ......................... 50,000 535,921
*Baltimore Technologies plc
(Software/Computer Services) ....... 125,000 946,188
Barclays plc (Banks) ................ 54,139 1,346,621
BG Group plc (Gas/Distribution) ..... 180,200 1,164,877
*Bookham Technology plc
(Telecommunication Services) ....... 25,000 1,455,616
BP Amoco plc, ADR (Oil/Gas) ......... 39,500 2,234,219
British Telecommunications plc
(Telecommunication Services) ....... 120,400 1,556,618
*COLT Telecom Group plc
(Telecommunication Services) ....... 60,300 2,008,342
Compass Group plc
(Restaurants/Pubs/Breweries) ....... 198,400 2,614,617
Diageo plc (Beverages) .............. 150,000 1,346,615
Glaxo Wellcome plc
(Pharmaceuticals) .................. 53,400 1,557,832
Granada Group plc (Leisure/
Entertainment/Hotels) .............. 177,154 1,770,078
HSBC Holdings plc (Banks) ........... 158,000 1,807,129
Invensys plc (Engineering/
Machinery) ......................... 290,000 1,088,798
*Marconi plc (Information
Technology Hardware) ............... 76,000 989,486
*NDS Group plc, ADR (Software/
Computer Services) ................. 8,500 518,500
Pearson plc (Media/
Photography) ....................... 70,000 2,225,435
Prudential plc (Insurance) .......... 76,800 1,125,471
Royal Bank of Scotland Group plc
(Banks) ............................ 115,400 1,932,229
Shell Transport & Trading Co. plc
(Oil/Gas) .......................... 93,000 776,472
Shell Transport & Trading Co., ADR
(Oil/Gas) .......................... 23,000 1,148,563
SmithKline Beecham plc
(Pharmaceuticals) .................. 121,762 1,594,503
*Telewest Communications plc
(Media/Photography) ................ 211,300 729,343
Vodafone Airtouch plc
(Telecommunication Services) ....... 961,500 3,886,495
WPP Group plc
(Media/Photography) ................ 291,000 4,251,262
---------------
40,611,230
---------------
UNITED STATES (2.0%)
*Infonet Services Corp. (Class B)
(Telecommunication Services) ....... 46,500 555,094
*NTL, Inc. (Media/Photography) ....... 16,200 969,975
*OpenTV Corp.
(Media/Photography) ................ 14,000 628,250
Santa Fe International Corp.
(Oil/Gas) .......................... 33,000 1,152,937
Schlumberger Ltd. (Oil/Gas) ......... 15,400 1,149,225
---------------
4,455,481
---------------
Total Common Stocks
(Cost $176,993,663) 209,985,815
---------------
</TABLE>
See Accompanying Notes to Financial Statements
43
<PAGE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------- --------------
<S> <C> <C>
PREFERRED STOCKS (0.8%)
BRAZIL (0.1%)
Dixie Toga SA (Packaging) ........... 437,500 $ 133,388
---------------
GERMANY (0.7%)
SAP Corp., System, Applications &
Products in Data Processing
(Software/Computer Services) ....... 9,000 1,671,110
---------------
Total Preferred Stocks
(Cost $2,422,189) ................... 1,804,498
---------------
REPURCHASE AGREEMENT (1.8%)
J.P. Morgan Securities, Inc.
6.64% dated 06/30/2000, due 07/03/2000 in
the amount of $4,044,668.
Collateralized by U.S. Treasury Notes
4.875% to 6.625%
due 03/31/2001 to 06/30/2003
U.S. Treasury Bonds 6.375% to 12.375%
due 05/15/2004 to 08/15/2027
U.S. Treasury Bill 5.80% due 09/21/2000
(Cost $4,043,932) .................. $4,043,932 4,043,932
---------------
TOTAL INVESTMENTS (95.6%)
(Cost $183,459,784) ..................... 215,834,245
OTHER ASSETS LESS LIABILITIES (4.4%) ...... 9,965,232
---------------
NET ASSETS (100.0%) ....................... $ 225,799,477
===============
</TABLE>
* Non-income producing.
See Accompanying Notes to Financial Statements
44
<PAGE>
SCHEDULE OF INVESTMENTS
--------------------------------------------------------------------------------
--- COLUMBIA SPECIAL FUND, INC. --
----------------------------------
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
SHARES VALUE
------------- --------------
<S> <C> <C>
COMMON STOCKS (96.4%)
BANKS (2.5%)
Capital One Financial Corp. .......... 197,200 $ 8,800,050
Charter One Financial, Inc. .......... 500,000 11,500,000
National Commerce Bancorporation ..... 482,600 7,751,762
---------------
28,051,812
---------------
BROADCASTING (4.6%)
*Clear Channel Communications, Inc. ... 160,000 12,000,000
*Cox Radio, Inc. (Class A) ............ 250,000 7,000,000
*Hispanic Broadcasting Corp. .......... 331,400 10,977,625
*Univision Communications, Inc.
(Class A) ........................... 226,900 23,484,150
---------------
53,461,775
---------------
COMPUTERS (0.3%)
*Handspring, Inc. ..................... 120,000 3,240,000
---------------
ELECTRIC & NATURAL GAS (1.3%)
*AES Corp. ............................ 322,100 14,695,813
---------------
ELECTRICAL EQUIPMENT/DIVERSIFIED INDUSTRIAL (0.1%)
*Ballard Power Systems, Inc. .......... 15,000 1,347,187
---------------
EXPLORATION & PRODUCTION (3.9%)
Anadarko Petroleum Corp. ............. 225,200 11,105,175
Apache Corp. ......................... 352,900 20,754,931
Devon Energy Corp. ................... 231,800 13,024,263
---------------
44,884,369
---------------
HEALTH CARE (8.7%)
*ALZA Corp. ........................... 466,700 27,593,637
Cardinal Health, Inc. ................ 193,300 14,304,200
*Chiron Corp. ......................... 201,200 9,557,000
*Genentech, Inc. ...................... 85,500 14,706,000
*Millennium Pharmaceuticals, Inc. ..... 84,000 9,397,500
*Tenet Healthcare Corp. ............... 447,500 12,082,500
*Watson Pharmaceuticals, Inc. ......... 226,500 12,174,375
---------------
99,815,212
---------------
HOTELS & GAMING (2.1%)
*Harrah's Entertainment, Inc. ......... 420,000 8,793,750
Starwood Hotels & Resorts
Worldwide, Inc. ................... 469,500 15,170,719
---------------
23,964,469
---------------
MATERIALS (1.6%)
Martin Marietta Materials, Inc. ...... 352,000 14,234,000
Southdown, Inc. ...................... 80,000 4,620,000
---------------
18,854,000
---------------
MEDICAL DEVICES (3.6%)
*CYTYC Corp. .......................... 109,700 5,855,237
PE Corp-PE Biosystems Group .......... 183,900 12,114,412
*Waters Corp. ......................... 190,600 23,789,263
---------------
41,758,912
---------------
OIL SERVICES (8.3%)
*BJ Services Co. ...................... 168,900 10,556,250
*Grant Prideco, Inc. .................. 185,000 4,625,000
*Nabors Industries, Inc. .............. 556,200 23,117,062
*Noble Drilling Corp. ................. 415,700 17,121,644
*R & B Falcon Corp. ................... 228,600 5,386,387
Transocean Sedco Forex, Inc. ......... 458,600 24,506,438
*Weatherford International, Inc. ...... 255,000 10,152,188
---------------
95,464,969
---------------
PERIPHERALS (1.8%)
*American Power Conversion Corp. ...... 135,100 5,513,769
Tektronix, Inc. ...................... 207,650 15,366,100
---------------
20,879,869
---------------
POLLUTION CONTROL (0.4%)
*Cuno, Inc. ........................... 210,000 4,856,250
---------------
REAL ESTATE SECURITIES (1.7%)
Spieker Properties, Inc. ............. 245,000 11,576,250
Vornado Realty Trust ................. 240,000 8,340,000
---------------
19,916,250
---------------
RESTAURANTS (1.5%)
*Brinker International, Inc. .......... 83,900 2,454,075
*Outback Steakhouse, Inc. ............. 508,200 14,864,850
---------------
17,318,925
---------------
RETAIL (4.3%)
*Best Buy Co., Inc. ................... 77,750 4,917,687
*Dollar Tree Stores, Inc. ............. 382,500 15,132,656
Family Dollar Stores, Inc. ........... 538,000 10,524,625
Limited, Inc. ........................ 711,860 15,393,973
Nordstrom, Inc. ...................... 135,000 3,256,875
---------------
49,225,816
---------------
</TABLE>
See Accompanying Notes to Financial Statements
45
<PAGE>
<TABLE>
<CAPTION>
SHARES VALUE
------------- --------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
SEMICONDUCTORS (12.2%)
*Amkor Technology, Inc. ............... 164,500 $ 5,808,906
*ASM Lithography Holding N.V. ......... 244,350 10,781,944
*Atmel Corp. .......................... 140,750 5,190,156
*Cypress Semiconductor Corp. .......... 324,100 13,693,225
*Flextronics International Ltd. ....... 194,850 13,383,759
*Intersil Holding Corp. ............... 120,000 6,487,500
*Jabil Circuit, Inc. .................. 144,200 7,155,925
*KLA-Tencor Corp. ..................... 102,800 6,020,225
*LAM Research Corp. ................... 213,400 8,002,500
*LSI Logic Corp. ...................... 411,950 22,296,794
*National Semiconductor Corp. ......... 192,450 10,921,537
*QLogic Corp. ......................... 169,200 11,177,775
*Sandisk Corp. ........................ 128,900 7,887,069
*ST Assembly Test Services Ltd. ....... 231,250 5,954,688
*Teradyne, Inc. ....................... 71,200 5,233,200
---------------
139,995,203
---------------
SERVICES (5.5%)
*Apollo Group, Inc. (Class A) ......... 200,800 5,622,400
*Concord EFS, Inc. .................... 500,000 13,000,000
*DST Systems, Inc. .................... 175,000 13,321,875
*Fiserv, Inc. ......................... 320,000 13,840,000
*Keane, Inc. .......................... 158,300 3,423,237
*Mercury Interactive Corp. ............ 30,000 2,902,500
*Solectron Corp. ...................... 236,300 9,895,063
*StorageNetworks, Inc. ................ 12,000 1,083,000
---------------
63,088,075
---------------
SOFTWARE (13.1%)
*Amdocs Ltd. .......................... 241,250 18,515,937
*BEA Systems, Inc. .................... 600,200 29,672,388
*Edwards, J.D. & Co. .................. 238,050 3,585,628
*Electronic Arts, Inc. ................ 130,000 9,481,875
*Intuit, Inc. ......................... 199,800 8,266,725
*Macromedia, Inc. ..................... 112,450 10,872,509
*Peregrine Systems, Inc. .............. 469,600 16,289,250
*Portal Software, Inc. ................ 310,000 19,801,250
*RealNetworks, Inc. ................... 263,000 13,297,938
*Versata, Inc. ........................ 157,800 6,361,313
*Vignette Corp. ....................... 287,300 14,944,089
---------------
151,088,902
---------------
TELECOMMUNICATION SERVICES (18.9%)
*ADC Telecommunications, Inc. ......... 170,000 14,258,750
*Advanced Fibre Communications, Inc. .. 81,750 3,704,297
<CAPTION>
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------- --------------
<S> <C> <C>
*Alteon WebSystems, Inc. .............. 100,000 10,006,250
*Aspect Telecommunications Corp. ...... 152,150 5,981,397
*AudioCodes Ltd. ...................... 55,000 6,600,000
*Ciena Corp. .......................... 218,800 36,471,225
*Cisco Systems, Inc. .................. 42,436 2,697,338
*Copper Mountain Networks, Inc. ....... 68,950 6,076,219
*Ditech Communications Corp. .......... 157,400 14,884,137
*Efficient Networks, Inc. ............. 150,000 11,034,375
*Exfo Electro-Optical Engineering, Inc. 31,800 1,395,225
*Extreme Networks, Inc. ............... 264,700 27,925,850
*Juniper Networks, Inc. ............... 17,200 2,503,675
*McLeodUSA, Inc. (Class A) ............ 555,000 11,481,562
*Metromedia Fiber Network, Inc. ....... 273,400 10,850,563
*Nextlink Communications, Inc. (Class A) 282,200 10,705,963
*ONI Systems Corp. .................... 43,000 5,039,734
*Polycom, Inc. ........................ 60,700 5,711,491
*Redback Networks, Inc. ............... 36,800 6,591,800
Scientific-Atlanta, Inc. ............. 258,300 19,243,350
*Sycamore Networks, Inc. .............. 42,800 4,724,050
---------------
217,887,251
---------------
Total Common Stocks
(Cost $749,357,869) .................. 1,109,795,059
---------------
CONVERTIBLE PREFERRED STOCK (0.2%)
TELECOMMUNICATION EQUIPMENT
Nanovation Technologies, Inc.
(Private Placement)
(Cost $2,164,275) ................... 144,285 2,164,275
---------------
REPURCHASE AGREEMENT (4.3%)
J.P. Morgan Securities, Inc.
6.64% dated 06/30/2000, due 07/03/2000 in
the amount of $49,433,481.
Collateralized by U.S. Treasury Notes
4.875% to 6.625%
due 03/31/2001 to 06/30/2003
U.S. Treasury Bonds 6.375% to 12.375%
due 05/15/2004 to 08/15/2027
U.S. Treasury Bill 5.80% due 09/21/2000
(Cost $49,424,485) .................. $49,424,485 49,424,485
---------------
TOTAL INVESTMENTS (100.9%)
(Cost $800,946,629) ...................... 1,161,383,819
OTHER ASSETS LESS LIABILITIES (-0.9%) ...... (10,168,202)
---------------
NET ASSETS (100.0%) ........................ $1,151,215,617
===============
</TABLE>
* Non-income producing
See Accompanying Notes to Financial Statements
46
<PAGE>
SCHEDULE OF INVESTMENTS
--------------------------------------------------------------------------------
-- COLUMBIA SMALL CAP FUND, INC. --
------------------------------------
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
SHARES VALUE
------------- --------------
<S> <C> <C>
COMMON STOCKS (92.0%)
AIRLINES (1.4%)
*Atlantic Coast Airlines
Holdings, Inc. ...................... 100,400 $ 3,187,700
*EGL, Inc. ............................ 110,100 3,385,575
---------------
6,573,275
---------------
BANKS (1.4%)
Bank United Corp. (Class A) .......... 62,600 2,202,737
City National Corp. .................. 60,300 2,140,650
TCF Financial Corp. .................. 87,700 2,252,794
---------------
6,596,181
---------------
BROADCASTING (2.2%)
*Citadel Communications Corp. ......... 140,000 4,891,250
*Entercom Communications Corp. ........ 110,430 5,383,463
---------------
10,274,713
---------------
COMPUTERS (4.5%)
*Apex, Inc. ........................... 160,400 7,017,500
*C-COR.net Corp. ...................... 166,300 4,490,100
*Concurrent Computer Corp. ............ 171,300 2,248,312
*Radisys Corp. ........................ 126,250 7,164,688
---------------
20,920,600
---------------
ELECTRICAL EQUIPMENT/DIVERSIFIED INDUSTRIAL (1.5%)
PerkinElmer, Inc. .................... 108,800 7,194,400
---------------
ENTERTAINMENT (0.9%)
*Imax Corp. ........................... 182,100 4,142,775
---------------
EXPLORATION & PRODUCTION (1.5%)
Devon Energy Corp. ................... 88,700 4,983,831
Western Gas Resources, Inc ........... 105,200 2,209,200
---------------
7,193,031
---------------
FOOD & DRUG RETAIL (0.8%)
*Whole Foods Market, Inc. ............. 86,900 3,590,056
---------------
FOOD, BEVERAGE, TOBACCO (0.7%)
Adolph Coors Co. (Class B) ........... 51,300 3,103,650
---------------
HEALTH CARE (10.8%)
*Alkermes, Inc. ....................... 105,300 4,962,262
Alpharma, Inc. (Class A) ............. 125,300 7,799,925
*AmeriSource
Health Corp. (Class A) .............. 76,400 2,368,400
*Angiotech Pharmaceuticals, Inc. ...... 35,800 1,494,650
*Cerner Corp. ......................... 78,500 2,139,125
*First Health Group Corp. ............. 123,400 4,049,063
*Intelligent Polymers Ltd. ............ 33,000 1,200,375
Jones Pharma, Inc. ................... 66,900 2,671,819
*Orthodontic Centers of
America, Inc. ....................... 137,600 3,113,200
*Patterson Dental Co. ................. 53,300 2,718,300
*Priority Healthcare
Corp. (Class B) ..................... 108,400 8,055,475
*Shire Pharmaceuticals
Group plc, ADR ...................... 103,240 5,355,575
*Spiros Development
Corp. II, Inc. ...................... 30,000 446,250
*Universal Health
Services, Inc. (Class B) ............ 63,000 4,158,000
---------------
50,532,419
---------------
HOTELS & GAMING (0.5%)
Intrawest Corp. ...................... 130,500 2,479,500
---------------
LEISURE PRODUCTS (1.1%)
Callaway Golf Co. .................... 324,600 5,295,038
---------------
MACHINERY (0.7%)
*Astec Industries, Inc. ............... 126,200 3,202,325
---------------
MEDICAL DEVICES (1.7%)
*Aspect Medical Systems, Inc. ......... 59,950 1,618,650
*Oratec Interventions, Inc. ........... 64,700 2,159,363
*ResMed, Inc. ......................... 49,350 1,320,112
*Zoll Medical Corp. ................... 55,800 2,734,200
---------------
7,832,325
---------------
OIL SERVICES (10.5%)
Coflexip SA, ADR ..................... 36,700 2,220,350
*Grant Prideco, Inc. .................. 159,400 3,985,000
*Hanover Compressor Co. ............... 62,200 2,363,600
*Marine Drilling
Companies, Inc. ..................... 164,500 4,606,000
*Natco Group, Inc. (Class A) .......... 102,400 966,400
*National-Oilwell, Inc. ............... 176,700 5,809,013
</TABLE>
See Accompanying Notes to Financial Statements
47
<PAGE>
<TABLE>
<CAPTION>
SHARES VALUE
------------- --------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
*Noble Drilling Corp. ................. 155,700 $ 6,412,894
*Patterson Energy, Inc. ............... 182,800 5,209,800
*Precision Drilling Corp. ............. 179,800 6,944,775
*Stolt Offshore SA .................... 76,500 1,080,562
*UTI Energy Corp. ..................... 119,900 4,810,987
*Veritas DGC, Inc. .................... 187,500 4,875,000
---------------
49,284,381
---------------
PERIPHERALS (4.0%)
*Maxtor Corp. ......................... 176,750 1,866,922
*Power-One, Inc. ...................... 148,650 16,936,809
---------------
18,803,731
---------------
POLLUTION CONTROL (1.1%)
*Tetra Tech, Inc. ..................... 225,850 5,166,319
---------------
REAL ESTATE SECURITIES (0.7%)
Cousins Properties, Inc. ............. 82,100 3,160,850
---------------
RESTAURANTS (1.0%)
*Cheesecake Factory, Inc., The ........ 71,250 1,959,375
*P.F. Chang's China Bistro, Inc. ...... 88,000 2,810,500
---------------
4,769,875
---------------
RETAIL (3.3%)
*InterTan, Inc. ....................... 78,550 922,963
*Linens `N Things, Inc. ............... 91,800 2,490,075
*Michaels Stores, Inc. ................ 136,800 6,267,150
*Pacific Sunwear of
California, Inc. .................... 259,400 4,863,750
*Tweeter Home
Entertainment Group, Inc. ........... 27,150 824,681
---------------
15,368,619
---------------
SEMICONDUCTORS (15.4%)
*Advanced Energy
Industries, Inc. .................... 21,550 1,270,103
*ASE Test Ltd.* ....................... 144,400 4,250,775
*ASM International NV ................. 138,200 3,662,300
*Atmel Corp. .......................... 64,750 2,387,656
Cohu, Inc. ........................... 26,050 702,536
*Credence Systems Corp. ............... 56,200 3,101,537
*Cymer, Inc. .......................... 85,600 4,087,400
*duPont Photomasks, Inc. .............. 62,400 4,274,400
*Electro Scientific Industries, Inc. .. 40,500 1,783,266
*Exar Corp. ........................... 45,000 3,923,438
*Integrated Device
Technology, Inc. .................... 125,800 7,532,275
Keithley Instruments, Inc. ........... 43,700 3,807,363
*Lattice Semiconductor Corp. .......... 84,200 5,820,325
*Manufacturers Services Ltd. .......... 38,700 795,769
*Mattson Technology, Inc. ............. 197,200 6,409,000
*MIPS Technologies, Inc. (Class A) .... 17,050 724,625
*MMC Networks, Inc. ................... 106,300 5,680,406
*Photronics, Inc. ..................... 165,950 4,708,831
*Sandisk Corp. ........................ 66,800 4,087,325
*Therma-Wave, Inc. .................... 60,100 1,340,981
*Viasystems Group, Inc. ............... 117,100 1,895,556
---------------
72,245,867
---------------
SERVICES (8.1%)
*Acxiom Corp. ......................... 321,500 8,760,875
*American Management
Systems, Inc. ....................... 123,900 4,067,405
*Apollo Group, Inc. (Class A) ......... 53,000 1,484,000
*Black Box Corp. ...................... 27,100 2,145,558
*Documentum, Inc. ..................... 67,950 6,073,031
*Getty Images, Inc. ................... 56,500 2,094,031
*Multex.com, Inc. ..................... 249,350 6,280,503
*Nova Corp. ........................... 124,275 3,471,933
*StorageNetworks, Inc. ................ 4,900 442,225
*Technology Solutions Co. ............. 277,000 1,713,938
*TriZetto Group, Inc. ................. 89,800 1,453,637
---------------
37,987,136
---------------
SOFTWARE (10.4%)
*Advent Software, Inc. ................ 66,000 4,257,000
*Amdocs Ltd. .......................... 76,800 5,894,400
*Bindview Development Corp. ........... 238,550 2,862,600
*BSquare Corp. ........................ 33,600 753,900
*Clarus Corp. ......................... 71,600 2,783,450
*HNC Software, Inc. ................... 157,300 9,713,275
*Hyperion Solutions Corp. ............. 46,200 1,498,612
*Internet Pictures Corp. .............. 134,004 2,026,811
*Macromedia, Inc. ..................... 46,250 4,471,797
*Matrixone, Inc. ...................... 9,800 398,125
*Remedy Corp. ......................... 96,900 5,402,175
*Symantec Corp. ....................... 62,250 3,357,609
*Verity, Inc. ......................... 143,850 5,466,300
---------------
48,886,054
---------------
</TABLE>
See Accompanying Notes to Financial Statements
48
<PAGE>
<TABLE>
<CAPTION>
SHARES VALUE
------------- --------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
TELECOMMUNICATION SERVICES (0.5%)
*GT Group Telecom, Inc. (Class B) ..... 132,300 $ 2,091,994
---------------
TELECOMMUNICATION EQUIPMENT (7.3%)
*Adaptive Broadband Corp. ............. 59,300 2,179,275
*Advanced Fibre
Communications, Inc. ................ 30,150 1,366,172
*Amphenol Corp. (Class A) ............. 93,000 6,155,438
*Andrew Corp. ......................... 119,800 4,020,788
*Commscope, Inc. ...................... 57,900 2,373,900
*Digital Microwave Corp. .............. 61,400 2,340,875
*Proxim, Inc. ......................... 9,150 905,564
*Tekelec .............................. 144,300 6,953,456
*TUT Systems, Inc. .................... 40,900 2,346,637
*Virata Corp. ......................... 92,500 5,515,312
---------------
34,157,417
---------------
Total Common Stocks
(Cost $325,347,573) .................. 430,852,531
---------------
CONVERTIBLE PREFERRED STOCK (0.1%)
TELECOMMUNICATION EQUIPMENT
*Nanovation Technologies, Inc.
(Private Placement)
(Cost $626,715) ..................... 41,781 626,715
---------------
WARRANT (0.0%)
*Dura Pharmaceuticals, Inc.
(12/31/2002) ........................ 30,000 11,250
---------------
REPURCHASE AGREEMENTS (7.5%)
J.P. Morgan Securities, Inc.
6.64% dated 06/30/2000, due 07/03/2000
in the amount of $21,185,527.
Collateralized by U.S. Treasury Notes
4.875% to 6.625%
due 03/31/2001 to 06/30/2003
U.S. Treasury Bonds 6.375% to 12.375%
due 05/15/2004 to 08/15/2027
U.S. Treasury Bill 5.80%
due 09/21/2000 ...................... 21,181,672 21,181,672
Merrill Lynch
6.54% dated 06/30/2000, due 07/03/2000
in the amount of $13,602,437.
Collateralized by U.S. Treasury Bonds
8.75% to 10.625%
due 11/15/2009 to 05/15/2017 ........ 13,600,000 13,600,000
---------------
Total Repurchase Agreements
(Cost $34,781,672) ................... 34,781,672
---------------
TOTAL INVESTMENTS (99.6%)
(Cost $360,755,960) ...................... 466,272,168
OTHER ASSETS LESS LIABILITIES (0.4%) ....... 1,942,460
---------------
NET ASSETS (100.0%) ........................ $ 468,214,628
===============
</TABLE>
* Non-income producing.
See Accompanying Notes to Financial Statements
49
<PAGE>
SCHEDULE OF INVESTMENTS
--------------------------------------------------------------------------------
-- COLUMBIA REAL ESTATE EQUITY FUND, INC. --
----------------------------------------------
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
SHARES VALUE
------------- --------------
<S> <C> <C>
COMMON STOCKS (93.0%)
REAL ESTATE INVESTMENT TRUSTS
APARTMENTS (14.7%)
Apartment Investment &
Management Co. (Class A) ............ 229,800 $ 9,938,850
Archstone Communities
Trust ............................... 309,671 6,522,445
AvalonBay Communities, Inc. .......... 401,064 16,744,422
Equity Residential
Properties Trust .................... 224,603 10,331,738
Post Properties, Inc. ................ 144,000 6,336,000
---------------
49,873,455
---------------
COMMUNITY CENTERS (8.8%)
Kimco Realty Corp. ................... 208,500 8,548,500
Pan Pacific Retail Properties, Inc. .. 124,300 2,501,538
Vornado Realty Trust ................. 543,200 18,876,200
---------------
29,926,238
---------------
HEALTH CARE (0.7%)
Nationwide Health
Properties, Inc. .................... 183,700 2,560,319
---------------
INDUSTRIAL (27.2%)
Alexandria Real Estate
Equities, Inc. ...................... 149,500 5,129,719
AMB Property Corp. ................... 265,500 6,056,719
Cabot Industrial Trust ............... 219,700 4,325,344
Centerpoint Properties Corp. ......... 104,700 4,266,525
First Industrial Realty Trust, Inc. .. 226,300 6,675,850
Istar Financial, Inc. ................ 256,335 5,367,014
Liberty Property Trust ............... 263,000 6,821,562
Prologis Trust ....................... 990,345 21,106,728
Public Storage, Inc. ................. 718,232 16,833,562
Spieker Properties, Inc. ............. 327,200 15,460,200
---------------
92,043,223
---------------
LODGING (8.8%)
Host Marriott Corp. .................. 928,400 8,703,750
Starwood Hotels & Resorts
Worldwide, Inc. ..................... 656,000 21,197,000
---------------
29,900,750
---------------
OFFICE (22.7%)
Boston Properties, Inc. .............. 232,500 8,980,313
Cousins Properties, Inc. ............. 374,800 14,429,800
Equity Office Properties Trust ....... 563,318 15,526,452
Mack-Cali Realty Corp. ............... 167,500 4,302,656
Prentiss Properties Trust ............ 339,600 8,150,400
Reckson Associates
Realty Corp. ........................ 431,300 10,243,375
Trizec Hahn Corp. .................... 847,800 15,154,425
---------------
76,787,421
---------------
OTHER (1.8%)
*Catellus Development Corp. ........... 396,400 5,946,000
---------------
SHOPPING MALLS (8.3%)
General Growth Properties, Inc. ...... 413,400 13,125,450
Simon Property Group, Inc. ........... 670,756 14,882,399
---------------
28,007,849
---------------
Total Common Stocks
(Cost $297,340,847) .................. 315,045,255
---------------
REPURCHASE AGREEMENTS (6.7%)
J.P. Morgan Securities, Inc.
6.64% dated 06/30/2000, due 07/03/2000
in the amount of $17,305,759.
Collateralized by U.S. Treasury Notes
4.875% to 6.625%
due 03/31/2001 to 06/30/2003
U.S. Treasury Bonds 6.375% to 12.375%
due 05/15/2004 to 08/15/2027
U.S. Treasury Bill 5.80%
due 09/21/2000 ...................... $17,302,610 17,302,610
Merrill Lynch
6.54% dated 06/30/2000, due 07/03/2000
in the amount of $5,500,985.
Collateralized by U.S. Treasury Bonds
8.75% to 10.625%
due 11/15/2009 to 05/15/2017 ........ 5,500,000 5,500,000
---------------
Total Repurchase Agreements
(Cost $22,802,610) ................... 22,802,610
---------------
TOTAL INVESTMENTS (99.7%)
(Cost $320,143,457) ...................... 337,847,865
OTHER ASSETS LESS LIABILITIES (0.3%) ....... 927,349
---------------
NET ASSETS (100.0%) ........................ $ 338,775,214
===============
</TABLE>
* Non-income producing
See Accompanying Notes to Financial Statements
50
<PAGE>
SCHEDULE OF INVESTMENTS
--------------------------------------------------------------------------------
-- COLUMBIA BALANCED FUND, INC. --
-----------------------------------
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
SHARES VALUE
------------- --------------
<S> <C> <C>
COMMON STOCKS (59.9%)
BANKS (3.7%)
Bank of New York Co., Inc. ........ 109,600 $ 5,096,400
Capital One Financial Corp. ....... 76,750 3,424,969
Citigroup, Inc. ................... 382,075 23,020,019
Washington Mutual, Inc. ........... 289,150 8,349,206
---------------
39,890,594
---------------
BROADCASTING (2.3%)
*America Online, Inc. .............. 147,950 7,804,362
*AT&T Corp. - Liberty Media
Group (Class A) .................. 299,728 7,268,404
*Clear Channel Communications, Inc. 76,050 5,703,750
*USA Networks, Inc. ................ 196,700 4,253,638
---------------
25,030,154
---------------
BROKERS/MONEY MANAGERS (2.2%)
American Express Co. .............. 221,100 11,524,838
Merrill Lynch & Co. ............... 14,050 1,615,750
Morgan Stanley Dean Witter & Co. .. 89,100 7,417,575
Schwab (Charles) Corp. ............ 99,150 3,333,918
---------------
23,892,081
---------------
CABLE (0.3%)
*Charter Communications, Inc.
(Class A) ......................... 232,150 3,815,965
---------------
COMPUTERS (3.1%)
*Apple Computer, Inc. .............. 65,000 3,404,375
Compaq Computer Corp. ............. 214,650 5,486,991
*Dell Computer Corp. ............... 289,750 14,288,297
International Business Machines, Inc. 29,700 3,254,006
*Sun Microsystems, Inc. ............ 79,100 7,193,156
---------------
33,626,825
---------------
ELECTRICAL EQUIPMENT/DIVERSIFIED INDUSTRIAL (4.7%)
Corning, Inc. ..................... 21,100 5,694,363
General Electric Co. .............. 472,500 25,042,500
Honeywell International, Inc. ..... 149,500 5,036,281
Tyco International Ltd. ........... 326,152 15,451,451
---------------
51,224,595
---------------
ENTERTAINMENT (0.8%)
Time Warner, Inc. ................. 108,850 8,272,600
---------------
HEALTH CARE (7.7%)
Merck & Co., Inc. ................. 189,950 14,554,919
Pfizer, Inc. ...................... 840,950 40,365,600
Pharmacia Corp. ................... 282,100 14,581,044
Schering-Plough Corp. ............. 283,750 14,329,375
---------------
83,830,938
---------------
INSURANCE - PROPERTY & CASUALTY (1.5%)
American International Group, Inc. 140,875 16,552,812
---------------
INTERNATIONAL INTEGRATED (1.7%)
Exxon Mobil Corp. ................. 176,087 13,822,830
Royal Dutch Petroleum Co. ......... 78,500 4,832,656
---------------
18,655,486
---------------
MATERIALS (0.4%)
Dow Chemical Co. .................. 60,100 1,814,269
International Paper Co. ........... 91,850 2,738,278
---------------
4,552,547
---------------
MEDICAL DEVICES (0.4%)
*Guidant Corp. ..................... 91,700 4,539,150
---------------
MORTGAGE/FINANCE COMPANIES (0.8%)
Fannie Mae ........................ 55,750 2,909,453
Freddie Mac ....................... 138,400 5,605,200
---------------
8,514,653
---------------
OIL SERVICES (3.1%)
*BJ Services Co. ................... 111,600 6,975,000
*Global Marine, Inc. ............... 180,050 5,075,159
*Grant Prideco, Inc. ............... 5,600 140,000
*Nabors Industries, Inc. ........... 187,850 7,807,516
*Noble Drilling Corp. .............. 189,800 7,817,388
Transocean Sedco Forex, Inc. ...... 29,150 1,557,703
*Weatherford International, Inc. ... 100,500 4,001,156
---------------
33,373,922
---------------
PERIPHERALS (0.8%)
*EMC Corp. ......................... 112,500 8,655,469
---------------
RETAIL (2.7%)
*Best Buy Co., Inc. ................ 175,550 11,103,538
Home Depot, Inc. .................. 108,250 5,405,734
Wal-Mart Stores, Inc. ............. 231,600 13,345,950
---------------
29,855,222
---------------
</TABLE>
See Accompanying Notes to Financial Statements
51
<PAGE>
<TABLE>
<CAPTION>
SHARES VALUE
------------- --------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
SEMICONDUCTORS (7.7%)
*Altera Corp. ...................... 41,600 $ 4,240,600
*Applied Materials, Inc. ........... 126,550 11,468,594
*Atmel Corp. ....................... 85,450 3,150,969
Intel Corp. ....................... 242,000 32,352,375
*Micron Technology, Inc. ........... 313,300 27,589,981
Texas Instruments, Inc. ........... 71,300 4,897,419
---------------
83,699,938
---------------
SERVICES (1.5%)
*Celestica, Inc. ................... 97,600 4,843,400
*Computer Sciences Corp. ........... 149,100 11,135,906
---------------
15,979,306
---------------
SOFTWARE (3.4%)
*Amdocs Ltd. ....................... 151,700 11,642,975
*Microsoft Corp. ................... 171,600 13,728,000
*Oracle Corp. ...................... 146,300 12,298,344
---------------
37,669,319
---------------
TELECOMMUNICATION SERVICES (4.6%)
AT&T Corp. ........................ 106,020 3,352,883
*Global Crossing Ltd. .............. 75,100 1,976,068
GTE Corp. ......................... 124,200 7,731,450
*McLeodUSA, Inc. (Class A) ......... 105,200 2,176,325
*Nextel Communications, Inc. ....... 33,200 2,031,425
SBC Communications, Inc. .......... 162,200 7,015,150
*Sprint Corp. (PCS Group) .......... 100,800 5,997,600
US West, Inc. ..................... 226,900 19,456,675
---------------
49,737,576
---------------
TELECOMMUNICATIONS EQUIPMENT (6.5%)
*Cisco Systems, Inc. ............... 342,500 21,770,156
*JDS Uniphase Corp. ................ 51,650 6,191,544
Lucent Technologies, Inc. ......... 272,360 16,137,330
Motorola, Inc. .................... 186,500 5,420,156
Nokia Corp. ....................... 89,600 4,474,400
Nortel Networks Corp. ............. 121,200 8,271,900
*Tellabs, Inc. ..................... 125,450 8,585,484
---------------
70,850,970
---------------
Total Common Stocks
(Cost $451,953,938) ............... 652,220,122
---------------
BONDS (36.8%)
U.S. GOVERNMENT SECURITIES (15.0%)
U.S. TREASURY INFLATION INDEX BONDS (0.9%)
3.375% 01/15/2007 ................. 10,049,115 9,639,300
---------------
U.S. TREASURY BONDS (3.4%)
***8.875% 08/15/2017 ................. 24,335,000 30,951,078
8.125% 08/15/2019 ................. 4,750,000 5,728,946
---------------
36,680,024
---------------
U.S. AGENCY BONDS (0.3%)
Federal Home Loan Bank
6.00% 08/15/2002 ................. 3,110,000 3,049,262
---------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) (4.3%)
7.00% 10/15/2026 - 05/15/2029 14,557,804 14,152,915
7.50% 08/15/2029 - 10/15/2029 2,127,192 2,111,238
8.00% 10/15/2026 - 04/15/2030 30,100,941 30,420,763
---------------
46,684,916
---------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) (1.6%)
**8.00% 7/15/2030 ................ 18,040,000 18,118,925
---------------
FEDERAL HOUSING ADMINISTRATION (FHA) (0.3%)
FHA Insured Project Pool #53-43077
9.125% 07/25/2033 ............... 1,580,221 1,617,107
FHA Insured Project Pool #55
7.43% 04/01/2022 ................ 1,488,335 1,445,769
---------------
3,062,876
---------------
AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS (4.2%)
GNMA Gtd. REMIC Pass Thru Secs.
REMIC Tr. 2000-6 Cl. VC
7.50% 04/20/2017 ................ 5,652,000 5,620,179
GNMA Gtd. REMIC Pass Thru Secs.
REMIC Tr. 1997-4 Cl. B
7.00% 08/20/2026 ................ 3,903,566 3,743,054
FNMA Gtd. REMIC Pass Thru Ctf.
REMIC Tr. 1994-10 Cl. UU
6.50% 01/25/2024 ................ 2,195,000 1,950,801
FNMA Gtd. REMIC Pass Thru Ctf.
REMIC Tr. 1994-43 Cl. E
6.50% 02/25/2024 ................ 1,432,843 1,365,227
FNMA Gtd. REMIC Pass Thru Ctf.
REMIC Tr. 1998-61 Cl. PK
6.00% 12/25/2026 ................ 4,670,000 4,243,863
</TABLE>
See Accompanying Notes to Financial Statements
52
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------------- --------------
<S> <C> <C>
BONDS (CONTINUED)
FNMA Gtd. REMIC Pass Thru Ctf.
REMIC Tr. 1998-63 Cl. PG
6.00% 03/25/2027 ................ $ 4,450,000 $ 4,067,411
FNMA Gtd. REMIC Pass Thru Ctf.
REMIC Tr. 1997-68 Cl. PJ
7.00% 10/18/2027 ................ 3,000,000 2,866,818
FHLMC Multiclass Mtg. Partn. Ctfs.
Gtd. Series 2153 Cl. CC
6.00% 08/15/2014 ................ 2,160,000 2,056,709
FHLMC Multiclass Mtg. Partn. Ctfs.
Gtd. Series 2116 Cl. VC
6.00% 11/15/2014 ................ 6,440,000 5,749,736
FHLMC Multiclass Mtg. Partn. Ctfs.
Gtd. Series 1763 Cl. H
8.25% 07/15/2023 ................ 282,706 286,503
FHLMC Multiclass Mtg. Partn. Ctfs.
Gtd. Series 2065 Cl. PB
6.25% 01/15/2024 ................ 883,000 842,391
FHLMC Multiclass Mtg. Partn. Ctfs.
Gtd. Series 2114 Cl. PF
6.00% 04/15/2027 ................ 3,000,000 2,748,160
FHLMC Multiclass Mtg. Partn. Ctfs.
Gtd. Series 2123 Cl. PE
6.00% 12/15/2027 ................ 2,210,000 2,009,023
FHLMC Multiclass Mtg. Partn. Ctfs.
Gtd. Series 2186 Cl. PG
6.00% 07/15/2028 ................ 4,770,000 4,324,324
FHLMC Multiclass Mtg. Partn. Ctfs.
Gtd. Series 2237 Cl. VB
7.00% 06/25/2030 ................ 4,000,000 3,875,600
---------------
45,749,799
---------------
Total U.S. Government Securities
(Cost $163,725,324) ............... 162,985,102
---------------
CORPORATES (13.3%)
INDUSTRIAL (7.9%)
Allied Holdings, Inc. Series B
8.625% 10/01/2007 ............... 500,000 442,500
Allied Waste North America, Inc.
7.625% 01/01/2006 ............... 1,000,000 870,000
Aluminum Co. of America, Series B
6.50% 06/15/2018 3,050,000 2,715,415
Ball Corp.
7.75% 08/01/2006 ................ 850,000 794,750
CSC Holdings, Inc.
7.875% 12/15/2007 ............... 3,500,000 3,386,355
CSC Holdings, Inc. Series B
8.125% 08/15/2009 ............... 200,000 194,414
Canadian National Railway Co.
6.45% 07/15/2006 ................ 675,000 631,058
Canadian National Railway Co.
Series 1997-A2
7.195% 01/02/2016 ............... 1,200,000 1,084,032
Coca-Cola Enterprises, Inc.
6.75% 01/15/2038 ................ 4,150,000 3,475,749
Conoco, Inc.
5.90% 04/15/2004 ................ 1,000,000 954,930
Cox Communications, Inc.
7.00% 08/15/2001 ................ 2,975,000 2,956,287
Cox Enterprises, Inc. (144A)
8.00% 02/15/2007 ................ 700,000 693,784
Diageo Capital plc
6.625% 06/24/2004 ............... 4,000,000 3,887,240
DaimlerChrysler N.A. Holdings
7.125% 04/10/2003 ............... 4,600,000 4,565,270
Dow Chemical Co.
7.375% 11/01/2029 ............... 2,225,000 2,157,293
Federal Express Corp. Pass Thru Trust
Series 1997-1C
7.65% 01/15/2014 ................ 2,012,391 1,943,225
Federated Department Stores, Inc.
6.30% 04/01/2009 ................ 2,200,000 1,933,140
8.50% 06/01/2010 ................ 2,550,000 2,598,144
Ford Motor Credit Co.
6.70% 07/16/2004 ................ 7,000,000 6,782,020
Gulf Canada Resources Ltd.
9.625% 07/01/2005 ............... 2,500,000 2,531,250
Honeywell International, Inc.
7.50% 03/01/2010 ................ 2,120,000 2,124,251
International Paper Co. (144A)
8.00% 07/08/2003 ................ 1,700,000 1,707,106
Jones Intercable, Inc.
8.875% 04/01/2007 ............... 1,425,000 1,449,838
Lenfest Communications, Inc.
8.375% 11/01/2005 ............... 650,000 658,736
Lowe's Cos., Inc.
6.50% 03/15/2029 ................ 2,825,000 2,283,702
</TABLE>
See Accompanying Notes to Financial Statements
53
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------------- --------------
<S> <C> <C>
BONDS (CONTINUED)
MCI Worldcom, Inc.
7.55% 04/01/2004 ................ $ 2,400,000 $ 2,380,968
8.875% 01/15/2006 ............... 1,000,000 1,036,860
Park Place Entertainment Corp.
9.375% 02/15/2007 ............... 1,725,000 1,725,000
Phillips Petroleum Co.
8.50% 05/25/2005 ................ 3,090,000 3,192,217
Qwest Communications International, Inc.
0.00% to 10/15/2002 then
9.47% to 10/15/2007 ............. 2,000,000 1,664,720
Shaw Communications, Inc.
8.25% 04/11/2010 ................ 1,400,000 1,411,354
Teekay Shipping Corp.
Gtd. 1st Pfd. Ship. Mtg. Notes
8.32% 02/01/2008 ................ 1,000,000 930,000
TCI Communications, Inc.
8.00% 08/01/2005 ................ 1,900,000 1,940,090
Time Warner, Inc.
7.975% 08/15/2004 ............... 4,303,000 4,381,306
Tyco International Group S.A.
6.25% 06/15/2003 ................ 4,500,000 4,296,510
USA Networks, Inc.
6.75% 11/15/2005 ................ 1,000,000 949,098
USA Waste Services, Inc.
6.125% 07/15/2001 ............... 6,585,000 6,359,266
United Technologies Corp.
6.50% 06/01/2009 ................ 1,685,000 1,589,848
Westpoint Stevens, Inc.
7.875% 06/15/2005 ............... 1,575,000 1,315,125
---------------
85,992,851
---------------
FINANCIAL (2.4%)
Bank of America Corp.
6.625% 06/15/2004 ............... 3,575,000 3,456,310
Chase Manhattan Corp.
Medium Term Notes, Series C
6.75% 12/01/2004 ................ 4,250,000 4,140,265
CIT Group, Inc.
7.375% 03/15/2003 ............... 4,500,000 4,441,239
Lehman Brothers, Inc.
7.00% 10/01/2002 ................ 4,400,000 4,328,588
Morgan Stanley Dean Witter & Co.
7.75% 06/15/2005 ................ 4,200,000 4,229,021
Travelers Property Casualty Corp.
6.75% 11/15/2006 ................ 2,350,000 2,243,522
Wachovia Corp.
5.625% 12/15/2008 ............... 4,350,000 3,744,741
---------------
26,583,686
---------------
UTILITIES (3.0%)
Arizona Public Service Co.
5.875% 02/15/2004 ............... 4,100,000 3,843,996
Coastal Corp.
6.50% 05/15/2006 ................ 5,250,000 4,975,373
Edison Mission Energy
7.73% 06/15/2009 ................ 3,200,000 3,120,512
Kinder Morgan Energy Partners L.P.
8.00% 03/15/2005 ................ 3,900,000 3,914,453
MidAmerican Funding Corp.
5.85% 03/01/2001 ................ 7,675,000 7,591,864
National Rural Utilities
Cooperative Finance Corp.
6.55% 11/01/2018 ................ 4,295,000 3,817,482
TXU Eastern Funding Co.
6.45% 05/15/2005 ................ 5,200,000 4,848,246
---------------
32,111,926
---------------
Total Corporates
Cost ($149,935,562) ............... 144,688,463
---------------
NON-CORPORATES (0.9%)
British Columbia Province
5.375% 10/29/2008 ............... 2,150,000 1,894,559
Korea Development Bank
6.50% 11/15/2002 ................ 775,000 750,471
7.125% 04/22/2004 ............... 2,375,000 2,296,487
Quebec Province
6.50% 01/17/2006 ................ 3,100,000 2,991,035
7.125% 02/09/2024 ............... 2,000,000 1,889,160
---------------
Total Non-Corporates
(Cost $10,204,108) ............... 9,821,712
---------------
OTHER SECURITIZED LOANS (7.4%)
ASSET-BACKED SECURITIES (3.5%)
Cityscape Home Equity Loan Trust
Series 1997-B Cl. A7
7.41% 05/25/2028 ................ 3,855,283 3,791,803
Cityscape Home Loan Owner Trust
Series 1997-4 Cl. A4
7.44% 10/25/2018 ................ 5,000,000 4,912,470
</TABLE>
See Accompanying Notes to Financial Statements
54
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------------- --------------
<S> <C> <C>
OTHER SECURITIZED LOANS (CONTINUED)
First Alliance Mortgage Trust
Series 1996-1 Cl. A1
7.34% 06/20/2027 ................ $ 670,452 $ 665,427
IMC Home Equity Loan Trust
Series 1997-3 Cl. A6
7.52% 08/20/2028 ................ 2,310,000 2,256,050
IMC Home Equity Loan Trust
Series 1997-5 Cl. A9
7.31% 11/20/2028 ................ 2,180,000 2,113,606
Merit Securities Corp.
Series 13 Cl. A4
7.88% 12/28/2033 ................ 2,310,000 2,304,864
New Century Home Equity Loan Trust
Series 1997-NC5 Cl. A5
7.13% 10/25/2028 ................ 11,760,000 11,389,031
Salomon Brothers Mortgage Securities VII, Inc.
Series 1996-LB2 Cl. A8
7.80% 10/25/2026 ................ 2,800,000 2,798,026
Salomon Brothers Mortgage Securities VII, Inc.
Series 1998-AQ1 Cl. A5
7.15% 06/25/2028 ................ 3,000,000 2,928,705
The Money Store Residential Trust
Series 1997-II Cl. A4
7.385% 03/15/2029 ............... 3,862,000 3,803,587
UCFC Funding Corp.
Series 1997-1 Cl. A3
7.055% 09/15/2013 ............... 1,790,000 1,777,175
---------------
38,740,744
---------------
COLLATERALIZED MORTGAGE OBLIGATIONS (2.4%)
+Bear Stearns Mortgage Securities, Inc.
Series 1996-2 Cl. A1
5.579% 01/25/2025 ............... 3,383,278 3,040,627
---------------
CMC Securities Corp. IV
Series 1997-2 Cl. 1A12
7.25% 11/25/2027 ................ 7,235,000 6,972,370
Headlands Mortgage Securities, Inc.
Series 1997-3 Cl. 1A6
7.00% 07/25/2027 ................ 5,360,000 5,214,932
PNC Mortgage Securities Corp.
Series 1997-4 Cl. 2PP2
7.50% 07/25/2027 ................ 2,750,000 2,695,606
Residential Asset Securitization Trust
Series 1998-A8 Cl. A2
6.75% 08/25/2028 ................ 1,136,374 1,108,854
+Saco I, Inc. (144A)
Series 1995-1 Cl. A
5.872% 9/25/2024 ................ 1,841,376 1,703,008
Structured Asset Securities Corp.
Series 1999-ALS2 Cl. A2
6.75% 07/25/2029 ................ 5,872,084 5,667,003
---------------
26,402,400
---------------
COMMERCIAL MORTGAGE-BACKED SECURITIES (1.5%)
Commercial Capital Access One, Inc. (144A)
Series 3 Cl. A2
6.615% 11/15/2028 ............... 6,460,000 6,080,774
Morgan Stanley Capital I, Inc.
Series 1999-CAM Cl. A3
6.92% 11/15/2008 ................ 5,560,000 5,432,370
NationsLink Funding Corp.
Series 1999-SL Cl. A5
6.888% 06/10/2007 ............... 3,480,000 3,360,585
+Nomura Asset Securities Corp.
Series 1994-MD1 Cl. A1B
7.70% 03/15/2018 ................ 1,323,925 1,323,614
---------------
16,197,343
---------------
Total Other Securitized Loans
(Cost $83,673,667) 81,340,487
---------------
TAXABLE MUNICIPAL BONDS (0.2%)
Chicago Ill. Tax Increment
Taxable Allocation Central Loop B
6.375% 06/01/2003
(Cost $2,327,535) ............... 2,250,000 2,195,662
---------------
Total Bonds
(Cost $409,866,196) .............. 401,031,426
---------------
</TABLE>
See Accompanying Notes to Financial Statements
55
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------------- --------------
<S> <C> <C>
REPURCHASE AGREEMENT (2.6%)
J.P. Morgan Securities, Inc.
6.64% Dated 06/30/2000,
due 07/03/2000 in the
amount of $27,928,477
Collateralized by U.S. Treasury Notes
4.875% to 6.625% due
03/31/2001 to 06/30/2003
U.S. Treasury Bonds
6.375% to 12.375% due
05/15/2004 to 08/15/2027
U.S. Treasury Bill
5.80% due 09/21/2000
(Cost $27,923,395) ............... $ 27,923,395 $ 27,923,395
---------------
TOTAL INVESTMENTS (99.3%)
(Cost $889,743,529) ................... 1,081,174,943
OTHER ASSETS LESS LIABILITIES (0.7%) .... 7,304,349
---------------
NET ASSETS (100.0%) ..................... $1,088,479,292
===============
</TABLE>
* Non-income producing.
** Security purchased on when-issued basis.
*** A portion of this security was segregated at the custodian to cover a
when-issued security.
+ Variable rate security - the rate reported is the rate in effect as of
June 30, 2000.
See Accompanying Notes to Financial Statements
56
<PAGE>
SCHEDULE OF INVESTMENTS
--------------------------------------------------------------------------------
-- COLUMBIA U.S. GOVERNMENT SECURITIES FUND, INC. --
-----------------------------------------------------
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------------- --------------
<S> <C> <C>
U.S. TREASURY NOTES (96.5%)
4.625% 12/31/2000 ................ $12,650,000 $12,539,313
6.625% 06/30/2001 ................ 9,575,000 9,583,977
5.875% 10/31/2001 ................ 4,000,000 3,968,125
6.125% 12/31/2001 ................ 5,625,000 5,596,875
5.50% 01/31/2003 ................. 2,700,000 2,642,203
---------------
Total U.S. Treasury Notes
(Cost $34,468,732) ............... 34,330,493
---------------
REPURCHASE AGREEMENT (3.4%)
J.P. Morgan Securities, Inc.
6.64% dated 06/30/2000, due 07/03/2000
in the amount of $1,220,891.
Collateralized by U.S. Treasury Notes
4.875% to 6.625%
due 03/31/2001 to 06/30/2003
U.S. Treasury Bonds 6.375% to 12.375%
due 05/15/2004 to 08/15/2027
U.S. Treasury Bill 5.80% due 09/21/2000
(Cost $1,220,669) ............... 1,220,669 1,220,669
---------------
TOTAL INVESTMENTS (99.9%)
(Cost $35,689,401) ................... 35,551,162
OTHER ASSETS LESS LIABILITIES (0.1%) ... 33,791
---------------
NET ASSETS (100.0%) .................... $ 35,584,953
===============
</TABLE>
See Accompanying Notes to Financial Statements
57
<PAGE>
SCHEDULE OF INVESTMENTS
--------------------------------------------------------------------------------
-- COLUMBIA FIXED INCOME SECURITIES FUND, INC. --
--------------------------------------------------
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------------- --------------
<S> <C> <C>
U.S. GOVERNMENT SECURITIES (42.5%)
U.S. TREASURY INFLATION INDEX BONDS (2.0%)
3.375% 01/15/2007 ................ $ 8,077,111 $ 7,747,717
---------------
U.S. TREASURY BONDS (8.1%)
**8.875% 08/15/2017 .............. 16,180,000 20,578,938
8.125% 08/15/2019 ................ 8,400,000 10,131,188
30,710,126
---------------
U.S. AGENCY DISCOUNT NOTES (1.4%)
Federal Home Loan Mortgage Corp.
6.09% 07/06/2000 ................. 5,400,000 5,395,485
---------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) (10.8%)
7.50% 06/15/2029 - 09/15/2029 .... 7,124,570 7,071,136
8.00% 10/15/2026 - 03/15/2030 .... 33,876,416 34,236,351
---------------
41,307,487
---------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) (4.3%)
7.00% 12/01/2029 - 01/01/2030 .... 4,751,711 4,573,521
*8.00% 04/15/2030 ................ 11,810,000 11,861,669
---------------
16,435,190
---------------
FEDERAL HOUSING ADMINISTRATION (FHA) (0.6%)
FHA Insured Project Pool #051-11078
8.35% 04/01/2030 ................. 2,181,339 2,201,293
---------------
AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS (15.3%)
GNMA Gtd. REMIC Pass Thru Secs.
REMIC Tr. 1999-14 Cl. VD
6.00% 03/20/2014 ................. 4,400,000 3,996,542
GNMA Gtd. REMIC Pass Thru Secs.
REMIC Tr. 2000-15 Cl. PD
7.50% 05/20/2026 ................. 3,722,500 3,717,614
GNMA Gtd. REMIC Pass Thru Secs.
REMIC Tr. 1999-13 Cl. PC
6.00% 03/20/2028 ................. 7,520,000 6,850,758
FNMA Gtd. REMIC Pass Thru Ctf.
REMIC Tr. 1998-49 Cl. TD
6.25% 12/18/2023 ................. 6,410,000 6,107,512
FNMA Gtd. REMIC Pass Thru Ctf.
REMIC Tr. 1999-19 Cl. PF
6.00% 06/25/2024 ................. 1,480,000 1,380,100
FNMA Gtd. REMIC Pass Thru Ctf.
REMIC Tr. 1998-61 Cl. PK
6.00% 12/25/2026 ................. 2,530,000 2,299,137
FHLMC GNMA Multiclass Mtg. Partn. Ctfs.
Gtd. Series 24 Cl. J
6.25% 11/25/2023 ................. 2,310,000 2,148,127
FHLMC Multiclass Mtg. Partn. Ctfs.
Gtd. Series 2116 Cl. VC
6.00% 11/15/2014 ................. 6,510,000 5,812,233
FHLMC Multiclass Mtg. Partn. Ctfs.
Gtd. Series 1558 Cl. C
6.50% 07/15/2023 ................. 2,191,000 2,084,445
FHLMC Multiclass Mtg. Partn. Ctfs.
Gtd. Series 1763 Cl. H
8.25% 07/15/2023 ................. 643,348 651,988
FHLMC Multiclass Mtg. Partn. Ctfs.
Gtd. Series 2065 Cl. PB
6.25% 01/15/2024 ................. 1,050,000 1,001,711
FHLMC Multiclass Mtg. Partn. Ctfs.
Gtd. Series 2085 Cl. PD
6.25% 11/15/2026 ................. 2,251,000 2,084,989
FHLMC Multiclass Mtg. Partn. Ctfs.
Gtd. Series 2114 Cl. PF
6.00% 04/15/2027 ................. 2,480,000 2,271,812
FHLMC Multiclass Mtg. Partn. Ctfs.
Gtd. Series 2155 Cl. PG
6.00% 07/15/2027 ................. 4,070,000 3,708,971
FHLMC Multiclass Mtg. Partn. Ctfs.
Gtd. Series 2113 Cl. MU
6.50% 08/15/2027 ................. 2,130,000 1,999,537
FHLMC Multiclass Mtg. Partn. Ctfs.
Gtd. Series 2123 Cl. PE
6.00% 12/15/2027 ................. 3,325,000 3,022,624
FHLMC Multiclass Mtg. Partn. Ctfs.
Gtd. Series 2136 Cl. PE
6.00% 01/15/2028 ................. 4,910,000 4,483,474
FHLMC Multiclass Mtg. Partn. Ctfs.
Gtd. Series 2237 Cl. VB
7.00% 06/25/2030 ................. 4,695,000 4,548,985
---------------
58,170,559
---------------
Total U.S. Government Securities
(Cost $162,087,880) ................ 161,967,857
---------------
</TABLE>
See Accompanying Notes to Financial Statements
58
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------------- --------------
<S> <C> <C>
CORPORATES (36.7%)
INDUSTRIAL (26.8%)
Aluminum Co. of America, Series B
6.50% 06/15/2018 ................. $ 2,325,000 $ 2,069,948
Anadarko Petroleum Corp.
6.625% 01/15/2028 ................ 3,125,000 2,619,813
Anheuser-Busch Cos., Inc.
5.75% 04/01/2010 ................. 3,800,000 3,351,790
Ball Corp.
7.75% 08/01/2006 ................. 850,000 794,750
Calpine Corp.
8.75% 07/15/2007 ................. 1,000,000 990,000
Clear Channel Communications, Inc.
7.875% 06/15/2005 ................ 1,600,000 1,604,592
Coca-Cola Enterprises, Inc.
6.75% 01/15/2038 ................. 3,850,000 3,224,491
Conoco, Inc.
5.90% 04/15/2004 ................. 3,200,000 3,055,776
Cox Enterprises, Inc. (144A)
8.00% 02/15/2007 ................. 400,000 396,448
CSC Holdings, Inc.
7.875% 12/15/2007 ................ 1,500,000 1,451,295
DaimlerChrysler N.A. Holdings
7.125% 04/10/2003 ................ 4,000,000 3,969,800
Diageo Capital plc
6.625% 06/24/2004 ................ 550,000 534,496
Dow Chemical Co.
7.375% 11/01/2029 ................ 2,650,000 2,569,361
Federal Express Corp. Pass Thru Trust
Series 1997-1C
7.65% 01/15/2014 ................. 2,103,863 2,031,553
Federated Department Stores, Inc.
6.30% 04/01/2009 ................. 1,000,000 878,700
8.50% 06/01/2010 ................. 1,400,000 1,426,432
Flag Ltd.
8.25% 01/30/2008 ................. 500,000 440,000
Ford Motor Credit Co.
6.70% 07/16/2004 ................. 5,700,000 5,522,502
General Electric Capital Corp.
Medium Term Notes
5.65% 03/31/2003 ................. 3,900,000 3,745,599
Gulf Canada Resources Ltd.
9.625% 07/01/2005 ................ 1,900,000 1,923,750
Heritage Media Corp.
8.75% 02/15/2006 ................. 1,250,000 1,231,250
Honeywell International, Inc.
7.50% 03/01/2010 ................. 2,100,000 2,104,210
ICI Wilmington, Inc.
7.05% 09/15/2007 ................. 3,805,000 3,547,021
International Paper Co. (144A)
8.00% 07/08/2003 ................. 1,850,000 1,857,733
Kroger Co., Series B
6.34% 06/01/2001 ................. 4,350,000 4,307,061
Lenfest Communications, Inc.
8.375% 11/01/2005 ................ 1,350,000 1,368,144
Lowe's Cos., Inc.
6.50% 03/15/2029 ................. 2,200,000 1,778,458
MCI Communications Corp.
6.125% 04/15/2002 ................ 4,755,000 4,647,442
MCI Worldcom, Inc.
8.875% 01/15/2006 ................ 900,000 933,174
Nabisco, Inc.
6.00% 02/15/2001 ................. 1,875,000 1,843,387
Park Place Entertainment Corp.
9.375% 02/15/2007 ................ 2,725,000 2,725,000
Pepsi Bottling Holdings, Inc. (144A)
5.625% 02/17/2009 ................ 5,000,000 4,464,250
Phillips Petroleum Co.
8.50% 05/25/2005 ................. 3,625,000 3,744,915
Precision Castparts Corp.
8.75% 03/15/2005 ................. 2,025,000 2,045,446
Qwest Communications International, Inc.
0.00% to 10/15/2002 then
9.470% to 10/15/2007 ............. 2,000,000 1,664,720
Santa Fe Snyder Corp.
8.05% 06/15/2004 ................. 2,700,000 2,647,355
Tenet Healthcare Corp.
8.625% 12/01/2003 ................ 990,000 980,100
Time Warner, Inc.
7.975% 08/15/2004 ................ 3,875,000 3,945,517
Tyco International Group S.A.
6.125% 06/15/2001 ................ 500,000 492,285
6.25% 06/15/2003 ................. 5,575,000 5,322,898
USA Waste Services, Inc.
6.125% 07/15/2001 ................ 5,250,000 5,070,030
US West Communications, Inc.
5.625% 11/15/2008 ................ 3,400,000 2,937,566
---------------
102,259,058
---------------
</TABLE>
See Accompanying Notes to Financial Statements
59
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------------- --------------
<S> <C> <C>
CORPORATES (CONTINUED)
FINANCIAL (7.1%)
Bank of America Corp.
5.875% 02/15/2009 ................ $3,980,000 $ 3,504,589
Chase Manhattan Corp.
Medium Term Notes, Series C
6.75% 12/01/2004 ................. 4,000,000 3,896,720
CIT Group, Inc.
Medium Term Notes
5.80% 03/26/2002 ................. 2,200,000 2,129,908
EOP Operating L.P.
6.376% 02/15/2002 ................ 3,125,000 3,039,250
Equitable Cos., Inc.
9.00% 12/15/2004 ................. 980,000 1,023,061
Lehman Brothers Holdings, Inc.
6.50% 10/01/2002 ................. 4,100,000 3,991,883
Morgan Stanley Dean Witter & Co.
7.75% 06/15/2005 ................. 3,775,000 3,801,085
Simon Property Group L.P.
6.625% 06/15/2003 ................ 2,050,000 1,959,636
Wells Fargo Co.
6.625% 07/15/2004 ................ 3,750,000 3,647,888
---------------
26,994,020
---------------
UTILITIES (2.8%)
Enron Corp.
7.375% 05/15/2019 ................ 2,220,000 2,089,708
FPL Group Capital, Inc.
7.625% 09/15/2006 ................ 2,725,000 2,727,908
National Rural Utilities
Cooperative Finance Corp.
6.55% 11/01/2018 ................. 2,215,000 1,968,736
TXU Eastern Funding Co.
6.45% 05/15/2005 ................. 4,200,000 3,915,891
---------------
10,702,243
---------------
Total Corporates
(Cost $145,229,837) ................ 139,955,321
---------------
NON-CORPORATES (2.5%)
British Columbia Province
5.375% 10/29/2008 ................ 1,900,000 1,674,261
Korea Development Bank
6.50% 11/15/2002 ................. 675,000 653,636
7.125% 04/22/2004 ................ 2,525,000 2,441,529
Quebec Province
7.00% 01/30/2007 ................. 2,490,000 2,441,495
7.125% 02/09/2024 ................ 2,400,000 2,266,992
---------------
Total Non-Corporates
(Cost $9,727,969) .................. 9,477,913
---------------
OTHER SECURITIZED LOANS (15.9%)
ASSET-BACKED SECURITIES (8.4%)
Cityscape Home Loan Owner Trust
Series 1997-4 Cl. A4
7.44% 10/25/2018 ................. 3,400,000 3,340,479
+First Union Student Loan Trust
Series 1997-1 Cl. A1
6.424% 7/25/2004 ................. 3,056,093 3,040,705
IMC Home Equity Loan Trust
Series 1995-3 Cl. A5
7.50% 04/25/2026 ................. 760,000 753,939
IMC Home Equity Loan Trust
Series 1997-3 Cl. A6
7.52% 08/20/2028 ................. 3,800,000 3,711,251
IMC Home Equity Loan Trust
Series 1997-5 Cl. A9
7.31% 11/20/2028 ................. 4,465,000 4,329,015
New Century Home Equity Loan Trust
Series 1999-NCA Cl. A7
7.32% 07/25/2029 ................. 6,893,027 6,820,164
Salomon Brothers Mortgage Securities VII, Inc.
Series 1996-LB2 Cl. A8
7.80% 10/25/2026 ................. 1,350,000 1,349,048
Salomon Brothers Mortgage Securities VII, Inc.
Series 1998-AQ1 Cl. A5
7.15% 06/25/2028 ................. 1,860,000 1,815,797
Saxon Asset Securities Co.
Series 1996-1 Cl. A2
8.06% 09/25/2027 ................. 6,900,000 6,978,609
---------------
32,139,007
---------------
COLLATERALIZED MORTGAGE OBLIGATIONS (4.3%)
+Bear Stearns Mortgage Securities, Inc.
Series 1996-2 Cl. A1
5.579% 01/25/2025 ................ 3,256,295 2,926,504
CMC Securities Corp. IV
Series 1997-2 Cl. 1A12
7.25% 11/25/2027 ................. 3,460,000 3,334,402
</TABLE>
See Accompanying Notes to Financial Statements
60
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------------- --------------
<S> <C> <C>
OTHER SECURITIZED LOANS (CONTINUED)
+DLJ Mortgage Acceptance Corp. (144A)
Series 1999-B Cl. A1
6.747% 08/28/2029 ................ $2,423,446 $ 2,263,931
PNC Mortgage Securities Corp.
Series 1997-4 Cl. 2PP2
7.50% 07/25/2027 ................. 3,095,000 3,033,782
Residential Funding Mortgage Securities, Inc.
Series 1993-S45 Cl. A10
8.00% 12/25/2023 ................. 588,976 589,523
Structured Asset Securities Corp.
Series 1999-ALS2 Cl. A2
6.75% 07/25/2029 ................. 4,409,332 4,255,338
---------------
16,403,480
---------------
COMMERCIAL MORTGAGE-BACKED SECURITIES (3.2%)
Commercial Capital Access One, Inc. (144A)
Series 3 Cl. A2
6.615% 11/15/2028 ................ 5,850,000 5,506,583
Credit Suisse First Boston
Mortgage Securities Corp.
Series 1998-C1 Cl. A1B
6.48% 05/17/2008 ................. 2,940,000 2,768,059
Morgan Stanley Capital I, Inc.
Series 1999-CAM Cl. A3
6.92% 11/15/2008 ................. 4,000,000 3,908,180
---------------
12,182,822
---------------
Total Other Securitized Loans
(Cost $61,870,261) ................. 60,725,309
---------------
REPURCHASE AGREEMENT (1.3%)
J.P. Morgan Securities, Inc.
6.64% Dated 06/30/2000,
due 07/03/2000 in the
amount of $4,921,118
Collateralized by U.S. Treasury Notes
4.875% to 6.625% due
03/31/2001 to 06/30/2003
U.S. Treasury Bonds
6.375% to 12.375% due
05/15/2004 to 08/15/2027
U.S. Treasury Bill
5.80% due 09/21/2000
(Cost $4,920,222) ................. 4,920,222 4,920,222
---------------
TOTAL INVESTMENTS (98.9%)
(Cost $383,836,169) .................... 377,046,622
OTHER ASSETS LESS LIABILITIES (1.1%) ..... 4,368,877
---------------
NET ASSETS (100.0%) ...................... $381,415,499
===============
</TABLE>
* Security purchased on when-issued basis.
** A portion of this security was segregated at the custodian to cover a
when-issued security.
+ Variable rate security - the rate reported is the rate in effect as of June
30, 2000.
See Accompanying Notes to Financial Statement
61
<PAGE>
SCHEDULE OF INVESTMENTS
--------------------------------------------------------------------------------
-- COLUMBIA NATIONAL MUNICIPAL BOND FUND, INC. --
--------------------------------------------------
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------------- --------------
<S> <C> <C>
MUNICIPAL BONDS (97.5%)
ALASKA (3.5%)
Alaska State Housing Finance Corp.
Coll. First Series Veterans Mtg. A 2
(Insured General Obligation) (AMT)
6.00% 06/01/2015 .................... $150,000 $ 150,750
Palmer Alaska Valley Hospital Association
(Insured Revenue)
5.35% 12/01/2012 .................... 125,000 121,563
Alaska Industrial Development &
Export Authority Snettisham
Hydroelectric Series 1
(Insured Revenue) (AMT)
5.50% 01/01/2008 .................... 95,000 96,662
Alaska Industrial Development &
Export Authority Power 1st Series
Snettisham Hydroelectric
(Pre-Refunded Revenue)
5.50% 01/01/2008 .................... 5,000 5,112
---------------
374,087
---------------
ARIZONA (2.1%)
Maricopa County Arizona
Individual Development
Authority Multi Family Housing
Metro Gardens Mesa Ridge PJ A
(Insured Revenue)
4.50% 07/01/2009 .................... 130,000 122,038
Sedona Arizona Certificates of Participation
5.75% 07/01/2007 .................... 100,000 103,000
---------------
225,038
---------------
COLORADO (1.6%)
Colorado Housing Financial
Authority Single Family PG
Sub B (Revenue)
4.875% 04/01/2007 ................... 100,000 98,500
Colorado Sales Tax Metropolitan
Football Stadium District
Capital Appreciation Series B
(Insured Revenue)
0.00% 01/01/2006 .................... 105,000 79,144
---------------
177,644
---------------
GEORGIA (1.4%)
Georgia Municipal Electric
Power Series B (Revenue)
5.50% 01/01/2018 .................... 150,000 146,437
---------------
HAWAII (1.0%)
Hawaii State Harbor Capital
Improvement (Insured Revenue) (AMT)
6.20% 07/01/2008 .................... 100,000 105,250
---------------
IDAHO (1.7%)
Idaho Health Facilities Authority
Bingham Memorial Hospital
Project (Revenue)
5.85% 03/01/2019 .................... 100,000 83,875
Student Loan Fund Marketing, Inc.
Series C (Revenue)
5.60% 04/01/2007 .................... 100,000 98,125
---------------
182,000
---------------
ILLINOIS (7.4%)
Broadview Illinois Tax Increment
(Revenue)
4.90% 07/01/2006 .................... 75,000 72,094
Chicago Illinois Park District
Aquarium & Museum (Insured
General Obligation)
5.80% 01/01/2018 .................... 150,000 151,312
Chicago Illinois Tax Increment
Allocation-Near South
Redevelopment PJ A (Insured
General Obligation)
5.00% 11/15/2012 .................... 200,000 194,750
Illinois Healthcare Facilities
Authority Refunding-Southern
Illinois Healthcare A
(Insured Revenue)
5.375% 03/01/2013 ................... 100,000 98,875
Madison County Illinois
Community Unit School
District #002 Triad Refunding
(Insured General Obligation)
4.90% 01/01/2013 .................... 100,000 94,500
</TABLE>
See Accompanying Notes to Financial Statements
62
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------------- --------------
<S> <C> <C>
MUNICIPAL BONDS (CONTINUED)
ILLINOIS
Regional Transportation Authority
Illinois Series A (Insured Revenue)
6.40% 06/01/2012 .................... $100,000 $ 110,125
Will County Illinois Forest
Preservation District Series B
(Insured General Obligation)
0.00% 12/01/2011 .................... 150,000 80,625
---------------
802,281
---------------
INDIANA (1.8%)
Indiana State Office Building
Commission Correction Facilities
Program Series B Womens Prison
(Insured Revenue)
5.50% 07/01/2020 .................... 100,000 96,625
Indiana Transportation Financial
Authority Airport Facilities
Lease Series A (Revenue)
5.50% 11/01/2017 .................... 100,000 96,625
---------------
193,250
---------------
IOWA (2.3%)
Davenport Iowa Series B
(General Obligation)
5.125% 06/01/2010 ................... 100,000 99,375
Iowa Finance Authority Single
Family Mortgage Series A
(Insured Revenue)
5.80% 07/01/2016 .................... 145,000 144,275
---------------
243,650
---------------
KENTUCKY (2.5%)
Kentucky State Property & Buildings
Commission Project #65 (Revenue)
5.90% 02/01/2016 .................... 200,000 209,250
Louisville & Jefferson County
Kentucky Visitors & Convention
Commission Capital Appreciation
Series BBB (Insured Revenue)
0.00% 12/01/2008 .................... 100,000 64,750
---------------
274,000
---------------
LOUISIANA (0.9%)
Orleans Parish Louisiana
Parishwide School District
Series A (Insured General Obligation)
5.125% 09/01/2016 ................... 100,000 95,125
---------------
MAINE (0.9%)
Regional Waste System Industry
Maine Solid Waste Resource
Recovery Series Q
(Revenue) (AMT)
5.50% 07/01/2004 .................... 100,000 102,125
---------------
MARYLAND (0.8%)
Maryland State Economic
Development Corp. Student
Housing Collegiate Housing-
Towson Series A (Revenue)
5.75% 06/01/2029 .................... 100,000 91,625
---------------
MICHIGAN (4.4%)
Detroit Michigan City School
District Refunding Series C
(Insured General Obligation)
5.25% 05/01/2012 .................... 175,000 175,438
Grandville Michigan Public
School District
(General Obligation)
4.75% 05/01/2011 .................... 100,000 94,375
Michigan State Hospital Finance
Authority Ascension Health
Credit Series A (Revenue)
6.00% 11/15/2019 .................... 100,000 100,125
5.375% 11/15/2033 ................... 100,000 99,125
---------------
469,063
---------------
MISSISSIPPI (3.3%)
Jones County Mississippi Hospital
Refunding-South Central Regional
Medical Center (Revenue)
4.90% 12/01/2004 .................... 100,000 94,750
</TABLE>
See Accompanying Notes to Financial Statements
63
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------------- --------------
<S> <C> <C>
MUNICIPAL BONDS (CONTINUED)
MISSISSIPPI
Mississippi Development Bank
Special Obligation Natchez
Convention Center Project
(Insured Revenue)
6.50% 07/01/2013 .................... $230,000 $ 255,588
---------------
350,338
---------------
MONTANA (1.8%)
Whitefish Montana Tax Increment
Urban Renewal (Revenue)
6.625% 07/15/2020 ................... 200,000 196,250
---------------
NEBRASKA (0.9%)
American Public Energy Agency
Nebraska Gas Supply Public Gas
Agency Project Series A
(Insured Revenue)
5.25% 06/01/2011 .................... 100,000 98,375
---------------
NEVADA (1.8%)
Clark County Nevada Passenger
Facility Charge Las Vegas
McCarran International
Airport B (Insured Revenue) (AMT)
6.25% 07/01/2011 .................... 100,000 104,500
Clark County Nevada School
District Comp Interest Series B
(General Obligation)
0.00% 06/01/2003 .................... 100,000 86,500
---------------
191,000
---------------
NEW YORK (4.2%)
Metropolitan Transit Authority
New York Dedicated Tax Fund
Series A (Insured Revenue)
5.25% 04/01/2014 .................... 100,000 98,375
New York City, New York Series A
(General Obligation)
6.00% 05/15/2021 .................... 250,000 252,500
New York State Urban
Development Corporation
Refunding-Correctional
Capital Facilities A (Revenue)
5.45% 01/01/2007 .................... 100,000 101,750
---------------
452,625
---------------
OHIO (1.1%)
Oak Hills Ohio Local School
District (Insured General Obligation)
7.20% 12/01/2009 .................... 100,000 115,750
---------------
OKLAHOMA (2.8%)
Oklahoma County Independent
School District #012 Edmond
Building Series B
(Insured General Obligation)
4.70% 08/01/2005 .................... 100,000 99,625
Okmulgee County Oklahoma 1st
Mortgage (Insured Revenue)
6.00% 03/01/2015 .................... 200,000 205,500
---------------
305,125
---------------
OREGON (18.2%)
Bend Municipal Airport PJ
Series B (Revenue)(AMT)
5.375% 06/01/2013 ................... 100,000 98,125
Benton County Oregon Hospital
Facilities Authority Refunding
Samaritan Health Services
Project (Revenue)
4.20% 10/01/2005 .................... 40,000 37,350
4.60% 10/01/2009 .................... 40,000 36,350
Clackamas County Oregon
Hospital Facility Authority
Refunding Odd Fellows
Home Series A (Revenue)
5.875% 09/15/2021 ................... 50,000 41,500
Damascus Oregon Water District
Certificates of Participation
5.25% 03/01/2019 .................... 100,000 91,250
Eugene Trojan Nuclear Project
(Revenue)
5.90% 09/01/2009 .................... 20,000 20,050
</TABLE>
See Accompanying Notes to Financial Statements
64
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------------- --------------
<S> <C> <C>
MUNICIPAL BONDS (CONTINUED)
OREGON
Hillsboro Oregon Hospital
Authority Refunding-Tuality
Healthcare (Revenue)
5.25% 10/01/2004 ................... $150,000 $ 146,063
5.75% 10/01/2012 ................... 25,000 23,625
Klamath Community College
Service District Oregon (Revenue)
4.70% 04/01/2010 ................... 55,000 51,563
4.80% 04/01/2011 ................... 25,000 23,469
Lebanon Oregon Urban Renewal
Agency (Revenue)
5.625% 06/01/2019 .................. 100,000 94,625
Oregon School Boards
Association Flexfund Financing
Program Series E
5.50% 06/01/2005 ................... 100,000 100,750
Port of St. Helens Pollution
Control Portland General
Electric Co. Series B (Revenue)
4.80% 06/01/2010 ................... 105,000 98,306
Port Umpqua Pollution Control
Refunding International Paper
Co. PJS A (Revenue)
5.05% 06/01/2009 ................... 135,000 128,081
Portland Housing Authority
Pearl Court Apartments (Revenue)
5.55% 01/01/2003 ................... 100,000 99,500
Portland Oregon Urban
Renewal & Redevelopment
Reference-Downtown
Waterfront Series L
5.90% 06/01/2001 ................... 130,000 131,759
City of Redmond Airport
Improvement Project Refunding
(General Obligation)
4.50% 05/01/2007 ................... 50,000 47,312
Redmond Oregon Urban
Renewal Agency Downtown
Area-B (Revenue)
5.65% 06/01/2013 ................... 100,000 94,625
Roseburg Oregon Urban Sanitation Authority
(General Obligation)
5.40% 09/01/2002 ................... 100,000 100,875
Salem Oregon Educational
Facilities Refunding Willamette
University Projects (Revenue)
6.00% 04/01/2010 ................... 100,000 103,625
Salem Oregon Hospital Facility
Authority Capital Manor, Inc.
(Revenue)
7.50% 12/01/2024 ................... 150,000 153,562
Sunriver Library County Service
District (General Obligation)
5.75% 06/01/2004 ................... 20,000 20,575
Washington County Housing
Authority Affordable Housing
Pool Series A (Revenue)
6.00% 07/01/2020 ................... 100,000 90,625
Washington & Clackamas Counties
School District #23J Tigard
(General Obligation)
0.00% 06/15/2021 ................... 450,000 127,125
---------------
1,960,690
---------------
SOUTH CAROLINA (1.0%)
Piedmont Municipal Power Agency
South Carolina Electric
Unrefunded Balance
Series A (Insured Revenue)
6.125% 01/01/2007 .................. 100,000 105,875
---------------
SOUTH DAKOTA (1.1%)
South Dakota State Building
Authority Lease Capital
Appreciation Series A
(Insured Revenue)
0.00% 12/01/2013 ................... 250,000 118,125
---------------
TENNESSEE (0.7%)
Montgomery County Tennessee
Health Educational & Housing
Facility Board Hospital
Refunding & Improvement-
Clarksville Regional (Revenue)
5.375% 01/01/2018 .................. 100,000 80,375
---------------
</TABLE>
See Accompanying Notes to Financial Statements
65
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------------- --------------
<S> <C> <C>
MUNICIPAL BONDS (CONTINUED)
TEXAS (9.4%)
Amarillo Texas Health Facilities
Corp. Baptist St. Anthonys
Hospital Corp. (Insured Revenue)
5.50% 01/01/2013 ................... $100,000 $ 100,750
Arlington Texas Independent
School District Capital
Appreciation Refunding
(Insured General Obligation)
0.00% 02/15/2007 ................... 150,000 105,938
Dallas Texas Civic Center
Refunding & Improvement
(Insured Revenue)
5.00% 08/15/2016 ................... 150,000 139,875
Harris County Texas Health
Facilities De Teco Project
Series B (Insured Revenue)
5.70% 02/15/2015 ................... 150,000 150,750
Lubbock Texas Health Facility
Development St. Josephs Health
System (Revenue)
5.25% 07/01/2012 ................... 150,000 143,063
Richardson Texas Independent
School District Series B
(Insured General Obligation)
5.00% 02/15/2018 ................... 145,000 132,312
Texas State University System
Financing System Series A
(Insured Revenue)
5.00% 03/15/2015 ................... 100,000 94,250
West Harris County Texas
Municipal Utility District #7
Capital Appreciation Refunding
(Insured General Obligation)
0.00% 03/01/2009 ................... 225,000 140,062
---------------
1,007,000
---------------
UTAH (0.9%)
Utah Assisted Municipal Power
System Refunding Hunter
Project (Insured Revenue)
5.00% 07/01/2011 ................... 100,000 96,125
---------------
WASHINGTON (15.3%)
Clark County (General Obligation)
4.85% 12/01/2012 ................... 150,000 141,000
Jefferson County Washington
Public Utility District #1
Water & Sewer (Revenue)
5.25% 05/01/2016 ................... 50,000 46,125
5.25% 05/01/2017 ................... 50,000 45,938
King County Public Hospital
District #4 Snoqualmie Valley
Hospital (General Obligation)
7.00% 12/01/2011 ................... 150,000 148,875
King County Washington School
District #415 Kent Series B
(General Obligation)
6.00% 12/01/2008 ................... 100,000 105,625
Port of Grays Harbor
Washington (Revenue)(AMT)
6.375% 12/01/2014 .................. 150,000 156,375
Seattle Washington Municipal
Light & Power Refunding
(Revenue)
5.00% 07/01/2018 ................... 110,000 99,275
Seattle Washington Municipal
Light & Power (Revenue)
6.00% 10/01/2016 ................... 150,000 154,500
Shelton Water & Sewer (Revenue)
5.25% 12/01/2018 ................... 50,000 45,687
Tacoma Washington Solid Waste
Utilities Refunding Series B
(Insured Revenue)
6.00% 12/01/2009 ................... 100,000 106,500
Thurston County Washington
School District #401 Rochester
(General Obligation)
4.80% 12/01/2007 ................... 55,000 53,144
Toppenish Washington
(General Obligation)
4.60% 12/01/2006 ................... 65,000 62,319
University of Washington
Educational Research Properties
Lease 4225 Roosevelt
Project Series A (Revenue)
5.375% 06/01/2029 .................. 100,000 91,723
</TABLE>
See Accompanying Notes to Financial Statements
66
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------------- --------------
<S> <C> <C>
MUNICIPAL BONDS (CONTINUED)
WASHINGTON
Washington State Department
of General Administration
Certificates of Participation
5.40% 07/01/2013 ................... $100,000 $ 100,000
5.00% 07/01/2017 ................... 140,000 127,575
Washington State Public Power
Supply System Nuclear Project #1
Refunding Series A (Revenue)
6.00% 07/01/2005 ................... 100,000 103,875
Washington State Public Power
Supply System Nuclear Project #2
Refunding Series A (Revenue)
5.00% 07/01/2011 ................... 50,000 48,250
Yakima County School District
#119 Selah (Insured General
Obligation)
5.00% 12/01/2006 ................... 10,000 10,012
---------------
1,646,798
---------------
WISCONSIN (1.8%)
Burlington Area Wisconsin
School District (Insured
General Obligation)
4.90% 04/01/2016 ................... 100,000 91,125
Milwaukie County Wisconsin
Corporate Purpose Series A
(General Obligation)
5.00% 10/01/2010 ................... 100,000 99,000
---------------
190,125
---------------
WYOMING (0.9%)
Wyoming Municipal Power
Agency Power Supply Refunding
Series 1998 (Insured Revenue)
5.250% 01/01/2011 .................. 100,000 99,500
---------------
TOTAL BONDS
(Cost $10,696,089) ................... 10,495,651
---------------
TAX EXEMPT MONEY MARKET INVESTMENT (1.1%)
SEI Tax Exempt Trust
(Cost $114,513) ..................... 114,513 114,513
---------------
TOTAL INVESTMENTS (98.6%)
(Cost $10,810,602) ....................... 10,610,164
OTHER ASSETS LESS LIABILITIES (1.4%) ....... 153,374
---------------
TOTAL NET ASSETS (100.0%) .................. $10,763,538
===============
</TABLE>
See Accompanying Notes to Financial Statements
67
<PAGE>
SCHEDULE OF INVESTMENTS
--------------------------------------------------------------------------------
---------------- -----------------
-- COLUMBIA OREGON MUNICIPAL BOND FUND, INC. --
-----------------------------------------------
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------------- --------------
<S> <C> <C>
GENERAL OBLIGATION BONDS (33.6%)
STATE OF OREGON GENERAL OBLIGATION (5.5%)
Board of Higher Education Refunding Series B
6.25% 10/15/2012 .......................... $ 740,000 $ 757,575
Board of Higher Education
Deferred Interest Series A
0.00% 08/01/2014 .......................... 450,000 207,562
Elderly & Disabled Housing Refunding Series B
6.25% 08/01/2013 .......................... 1,000,000 1,037,500
Pollution Control Series C
5.625% 06/01/2013 ......................... 575,000 573,563
5.90% 06/01/2014 .......................... 1,380,000 1,380,000
Veteran's Welfare
0.00% 07/01/2001 .......................... 1,200,000 1,148,484
9.00% 04/01/2002 .......................... 900,000 964,125
9.00% 04/01/2004 .......................... 280,000 319,200
9.00% 04/01/2005 .......................... 1,130,000 1,324,925
8.25% 07/01/2005 .......................... 520,000 597,350
9.00% 10/01/2005 .......................... 1,645,000 1,955,494
7.25% 01/01/2007 .......................... 1,485,000 1,672,481
9.20% 04/01/2007 .......................... 2,390,000 2,954,637
8.25% 07/01/2007 .......................... 540,000 642,600
9.20% 10/01/2007 .......................... 1,275,000 1,593,750
7.30% 01/01/2008 .......................... 445,000 507,300
8.00% 01/01/2008 .......................... 1,275,000 1,506,094
7.30% 07/01/2008 .......................... 1,170,000 1,342,575
8.00% 07/01/2008 .......................... 580,000 690,925
9.20% 10/01/2008 .......................... 285,000 363,731
5.85% 10/01/2015 .......................... 930,000 939,300
------------
22,479,171
------------
GENERAL OBLIGATION (12.9%)
Aurora
5.60% 06/01/2024 .......................... 1,205,000 1,147,763
Clackamas & Washington Counties
School District #3JT West Linn-Wilsonville
5.875% 10/01/2009 ......................... 2,550,000 2,616,938
Clackamas County School
District #7J Lake Oswego Series A
5.70% 06/15/2010 .......................... 2,735,000 2,793,119
Deschutes County Administrative
School District #1 Bend-La Pine
0.00% 02/01/2002 .......................... 1,445,000 1,336,625
5.00% 12/01/2017 .......................... 1,500,000 1,366,875
Eugene Public Safety Facilities
5.50% 06/01/2010 .......................... 850,000 864,875
5.625% 06/01/2013 ......................... 1,295,000 1,311,187
Jackson County School District
#549C Medford
5.375% 06/01/2012 ......................... 1,200,000 1,200,000
Lane County Area Education
District Lane Community College
4.85% 06/01/2008 .......................... 1,000,000 986,250
Lane County School District #4J
Eugene Refunding Series A
0.00% 07/01/2001 .......................... 2,015,000 1,928,496
0.00% 07/01/2005 .......................... 2,325,000 1,813,500
Lane County School District #4J Eugene
0.00% 01/01/2005 .......................... 1,395,000 1,112,512
Linn County Community
School District #9 Lebanon
6.125% 06/15/2014 ......................... 1,410,000 1,501,650
Metro Washington Park Zoo Series A
5.30% 01/15/2011 .......................... 1,000,000 1,005,000
Multnomah-Clackamas Counties
School District #10JT Gresham
5.25% 06/01/2017 .......................... 1,620,000 1,547,100
Multnomah County Refunding
4.25% 10/01/2010 .......................... 2,300,000 2,087,250
4.30% 10/01/2011 .......................... 1,110,000 1,001,775
4.50% 10/01/2013 .......................... 400,000 358,000
Multnomah County Certificates of
Participation Series A
4.75% 08/01/2013 .......................... 1,000,000 935,000
Multnomah County
School District #7 Reynolds
5.25% 06/01/2011 .......................... 1,500,000 1,498,125
Port of Portland Series A
0.00% 03/01/2007 .......................... 3,000,000 2,137,500
Portland Community College District
0.00% 07/01/2007 .......................... 2,025,000 1,420,031
Portland Public Improvements Series A
5.75% 06/01/2014 .......................... 1,500,000 1,515,000
Portland Recreational Facilities
Improvements Series B
5.75% 06/01/2014 .......................... 1,750,000 1,780,625
5.75% 06/01/2015 .......................... 2,955,000 3,003,019
</TABLE>
See Accompanying Notes to Financial Statements
68
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------------- --------------
<S> <C> <C>
GENERAL OBLIGATION BONDS (CONTINUED)
Portland Recreational Facilities
Improvements Series A
5.75% 06/01/2012 .......................... $1,370,000 $ 1,404,250
5.75% 06/01/2013 .......................... 1,345,000 1,371,900
5.75% 06/01/2015 .......................... 1,155,000 1,173,769
Portland Series A
4.875% 06/01/2018 ......................... 790,000 709,025
Washington & Clackamas Counties
School District #23J Tigard
0.00% 06/15/2018 .......................... 2,700,000 928,125
Washington & Clackamas Counties
School District #23J Tigard Refunding
5.40% 01/01/2010 .......................... 1,720,000 1,732,900
Washington & Clackamas Counties
School District #23J Tigard Deferred
Interest Series A
0.00% 06/01/2010 .......................... 1,520,000 889,200
Washington County Deferred Interest
Operations Yard Facilities Obligation
0.00% 06/01/2003 .......................... 1,000,000 866,250
Washington County School
District #088J Sherwood
4.50% 06/15/2014 .......................... 350,000 311,500
Washington County Refunding
6.20% 12/01/2007 .......................... 1,500,000 1,531,875
Washington County Refunding
Criminal Justice Facilities
5.00% 12/01/2010 .......................... 1,400,000 1,387,750
Washington County School
District #48J Beaverton Series B
6.15% 06/01/2008 .......................... 1,010,000 1,015,878
Washington, Multnomah & Yamhill
Counties School District #1J
5.25% 06/01/2014 .......................... 500,000 490,625
Wilsonville Limited Tax Improvement
5.00% 12/01/2020 .......................... 1,165,000 1,146,069
------------
53,227,331
------------
INSURED GENERAL OBLIGATION (15.2%)
Central Oregon Community College
5.80% 06/01/2007 .......................... 760,000 782,800
Chemeketa Community
College District Series B
5.60% 06/01/2014 .......................... 1,180,000 1,197,700
Clackamas County
School District #12 North Clackamas
5.25% 06/01/2011 .......................... 1,000,000 1,006,250
5.25% 06/01/2015 .......................... 2,750,000 2,681,250
4.80% 06/01/2018 .......................... 2,000,000 1,775,000
Clatsop County Administrative
School District #10
5.875% 07/01/2012 ......................... 630,000 637,875
Columbia County
School District #502 Deferred Interest
0.00% 06/01/2007 .......................... 260,000 182,975
0.00% 06/01/2012 .......................... 1,530,000 803,250
0.00% 06/01/2013 .......................... 1,685,000 834,075
0.00% 06/01/2014 .......................... 1,025,000 476,625
Deschutes & Jefferson Counties
School District #2J Redmond Refunding
5.60% 06/01/2009 .......................... 1,000,000 1,015,000
Hood River County School District
5.65% 06/01/2008 .......................... 1,020,000 1,042,950
Josephine County
School District #7 Grants Pass
5.70% 06/01/2013 .......................... 2,000,000 2,047,500
Lane & Douglas Counties
School District #97-J
5.30% 06/15/2015 .......................... 1,155,000 1,134,788
Lane County School District #52 Bethel
6.25% 12/01/2007 .......................... 580,000 621,325
6.40% 12/01/2009 .......................... 750,000 805,313
Lane County School District #19
Springfield Refunding
6.00% 10/15/2012 .......................... 740,000 797,350
6.00% 10/15/2014 .......................... 1,310,000 1,404,975
Lincoln County School District
6.00% 06/15/2007 .......................... 1,855,000 1,970,938
6.00% 06/15/2008 .......................... 1,450,000 1,547,875
6.00% 06/15/2009 .......................... 3,465,000 3,707,550
5.60% 06/15/2010 .......................... 3,480,000 3,614,850
5.25% 06/15/2012 .......................... 3,315,000 3,319,144
Marion County Certificates of Participation
Courthouse Square Project Series A
4.45% 06/01/2010 .......................... 430,000 398,288
</TABLE>
See Accompanying Notes to Financial Statements
69
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------------- --------------
<S> <C> <C>
GENERAL OBLIGATION BONDS (CONTINUED)
Marion County School
District #103C Woodburn Series B
0.00% 11/01/2006 .......................... $2,000,000 $ 1,455,000
0.00% 11/01/2007 .......................... 2,000,000 1,377,500
0.00% 11/01/2009 .......................... 2,500,000 1,543,750
0.00% 11/01/2011 .......................... 2,210,000 1,218,262
Multnomah County
School District #3 Parkrose
5.70% 12/01/2008 .......................... 1,330,000 1,368,237
5.70% 12/01/2009 .......................... 1,970,000 2,021,712
5.50% 12/01/2010 .......................... 895,000 909,544
5.50% 12/01/2011 .......................... 1,000,000 1,013,750
Northern Oregon Corrections
5.25% 09/15/2012 .......................... 1,000,000 1,000,000
5.30% 09/15/2013 .......................... 1,000,000 1,000,000
Salem Pedestrian Safety Improvements
5.40% 05/01/2009 .......................... 1,000,000 1,018,750
Salem Keizer School District #24J
5.00% 06/01/2015 .......................... 1,000,000 952,500
State Department Administrative Services
Certificates of Participation
Refunding Series A
4.50% 05/01/2012 .......................... 1,020,000 937,125
5.00% 05/01/2013 .......................... 4,240,000 4,134,000
5.00% 05/01/2014 .......................... 1,000,000 971,250
5.00% 05/01/2024 .......................... 1,500,000 1,344,375
Tillamook County
5.70% 01/15/2016 .......................... 700,000 707,000
Tillamook County Refunding
4.40% 01/01/2011 .......................... 550,000 505,312
4.60% 01/01/2013 .......................... 600,000 549,750
Umatilla County
School District #16R Pendleton
4.65% 07/01/2010 .......................... 1,660,000 1,587,375
Washington County
School District #15 Forest Grove
5.125% 06/01/2010 ......................... 1,000,000 1,015,000
5.25% 08/01/2010 .......................... 1,150,000 1,157,187
Washington County
School District #88J Sherwood
6.10% 06/01/2012 .......................... 185,000 191,937
Yamhill County School District #40
6.00% 06/01/2009 .......................... 500,000 535,000
5.35% 06/01/2010 .......................... 500,000 508,125
------------
62,828,087
------------
Total General Obligation Bonds
(Cost $138,429,931) 138,534,589
------------
REVENUE (36.2%)
Albany Hospital Facility
Authority Mennonite Home
5.625% 10/01/2017 ......................... 635,000 539,750
Bend Municipal Airport PJ Series B
5.375% 06/01/2013 ......................... 150,000 147,188
Benton County Hospital Facilities Authority
Refunding Samaritan Health Services Project
4.30% 10/01/2006 .......................... 230,000 212,750
4.40% 10/01/2007 .......................... 220,000 201,850
4.80% 10/01/2011 .......................... 245,000 222,338
5.20% 10/01/2017 .......................... 2,255,000 2,023,863
Clackamas County Hospital Facility
Authority Odd Fellows Home Series A
5.50% 09/15/2008 .......................... 1,690,000 1,542,125
5.875% 09/15/2021 ......................... 3,015,000 2,502,450
Clackamas County Hospital Facility
Authority Willamette View, Inc. Project
6.00% 11/01/2008 .......................... 670,000 642,363
Clackamas County Hospital Facility
Authority Legacy Health System
5.375% 02/15/2012 ......................... 3,135,000 3,076,219
5.50% 02/15/2013 .......................... 3,350,000 3,320,687
5.50% 02/15/2014 .......................... 1,000,000 983,750
5.00% 02/15/2015 .......................... 1,400,000 1,284,500
5.00% 02/15/2016 .......................... 1,000,000 910,000
Clackamas County Hospital
Facility Kaiser Permanente
Series A Refunding
6.50% 04/01/2011 .......................... 1,000,000 1,023,750
Clackamas County Hospital
Facility Kaiser Permanente Series A
5.375% 04/01/2014 ......................... 6,270,000 5,917,313
</TABLE>
See Accompanying Notes to Financial Statements
70
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------------- --------------
<S> <C> <C>
REVENUE (CONTINUED)
Clackamas County Hospital
Facility Authority Willamette Falls Project
5.750% 04/01/2014 ......................... $1,005,000 $ 928,369
6.00% 04/01/2019 .......................... 1,000,000 910,000
Clackamas County Hospital
Facility Authority
Robison Jewish Home Project
6.25% 10/01/2021 .......................... 1,630,000 1,579,063
Clackamas County Hospital
Facility Authority GNMA
Collateral Jennings Lodge
7.50% 10/20/2031 .......................... 1,030,000 1,050,600
Clackamas County Housing
Authority Multifamily
Housing Easton Ridge Series A
5.80% 12/01/2016 .......................... 2,255,000 2,243,725
Clackamas County
Hospital Authority Senior Living
Facility Marys Woods A
6.375% 05/15/2020 ......................... 1,405,000 1,275,037
Clackamas County
Hospital Facility Authority
Willamette View, Inc. PJ Series A
6.85% 11/01/2015 .......................... 1,580,000 1,489,150
Deschutes County Hospital
Facility Authority
5.75% 01/01/2009 .......................... 1,670,000 1,676,262
Deschutes Valley Water District
5.875% 09/01/2005 ......................... 3,670,000 3,784,688
Eugene Airport Refunding
5.50% 05/01/2005 .......................... 260,000 262,600
5.65% 05/01/2006 .......................... 240,000 244,200
5.65% 05/01/2007 .......................... 555,000 563,325
5.70% 05/01/2008 .......................... 515,000 522,081
Eugene Electric Utility Refunding
5.80% 08/01/2008 .......................... 1,435,000 1,456,525
5.80% 08/01/2009 .......................... 1,300,000 1,317,875
6.00% 08/01/2011 .......................... 1,375,000 1,397,344
Gresham Sewer
5.35% 06/01/2006 .......................... 860,000 871,825
Gresham Stormwater
6.10% 10/01/2009 .......................... 1,115,000 1,158,206
Hillsboro Hospital Facility
Authority Tuality Healthcare
5.75% 10/01/2012 .......................... 5,840,000 5,518,800
Lebanon Urban Renewal Agency
5.625% 06/01/2019 ......................... 1,000,000 946,250
Lebanon Wastewater Refunding
5.75% 06/01/2011 .......................... 1,225,000 1,244,906
Medford Hospital Facilities Authorization
Asante Health System Series A
5.25% 08/15/2010 .......................... 1,500,000 1,500,000
North Clackamas Parks & Recreation
District Recreational Facilities
5.70% 04/01/2013 .......................... 2,920,000 2,956,500
Northern Wasco County
People's Utility District Electric
0.00% 02/01/2006 .......................... 610,000 449,875
0.00% 02/01/2007 .......................... 585,000 402,919
0.00% 02/01/2008 .......................... 610,000 391,162
0.00% 02/01/2011 .......................... 500,000 260,000
Oregon Health, Housing,
Educational & Cultural
Facilities Authority/Aquarium
4.75% 10/01/2008 .......................... 1,550,000 1,333,000
4.90% 10/01/2009 .......................... 670,000 571,175
Oregon Health, Housing, Educational &
Cultural Facilities Authority Reed
College Project Series A
5.10% 07/01/2010 .......................... 900,000 893,250
5.30% 07/01/2011 .......................... 500,000 498,750
Oregon Health, Housing, Educational &
Cultural Facilities Authority Goodwill
Industries Lane County Series A
6.65% 11/15/2022 .......................... 4,225,000 3,791,937
Oregon Health, Housing, Educational &
Cultural Facilities Authority
Linfield College Project-Series A
4.55% 10/01/2008 .......................... 525,000 487,594
4.65% 10/01/2009 .......................... 555,000 516,844
5.50% 10/01/2018 .......................... 1,000,000 917,500
Oregon Housing & Community Services
Department Single Family Mortgage
Program Series A
4.85% 07/01/2010 .......................... 310,000 293,725
5.10% 07/01/2014 .......................... 425,000 403,219
</TABLE>
See Accompanying Notes to Financial Statements
71
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------------- --------------
<S> <C> <C>
REVENUE (CONTINUED)
Oregon Housing & Community
Services Department Housing
Finance Assisted Insured Multi Unit B
6.80% 07/01/2013 .......................... $8,360,000 $ 8,589,900
Oregon Housing & Community Services
Department Single Family Mortgage
Program Series D
6.70% 07/01/2013 .......................... 1,000,000 1,030,220
Oregon Housing & Community Services
Department Single Family Mortgage
Program Series E
5.375% 07/01/2021 ......................... 4,000,000 3,800,000
Oregon Housing & Community Services
Department Single Family Mortgage
Program Series F
5.65% 07/01/2028 .......................... 1,235,000 1,154,725
Oregon Housing & Community Services
Department Single Family Mortgage
Program Series F MBIA-IBC
5.65% 07/01/2028 .......................... 925,000 866,031
Oregon Housing Financial
5.80% 07/01/2009 .......................... 355,000 355,650
Oregon State Department
Administrative Services Lottery
Educational Project Series A
5.25% 04/01/2013 .......................... 1,500,000 1,500,000
Oregon State Economic
Development 24 hr. Dove Lewis
Emergency Animal Hospital
7.00% 12/01/2019 .......................... 1,545,000 1,521,825
Oregon State Housing & Community
Services Department Multifamily
Housing-Series B
6.00% 07/01/2031 .......................... 6,935,000 6,761,625
Oregon State Housing & Community
Services Department Mortgage Series M
5.80% 07/01/2012 .......................... 875,000 882,656
Oregon State Housing & Community
Services Department
Single Family Mortgage Program Series E
5.70% 07/01/2012 .......................... 1,210,000 1,220,587
5.80% 07/01/2014 .......................... 1,080,000 1,084,050
6.00% 07/01/2020 .......................... 3,000,000 3,015,000
Oregon State Housing & Community
Services Department
Single Family Mortgage Program Series L
6.05% 07/01/2020 .......................... 2,575,000 2,613,625
Oregon State Housing & Community
Services Department
Single Family Mortgage Program Series A
6.20% 07/01/2027 .......................... 3,700,000 3,700,000
Port of St. Helens
5.60% 08/01/2014 .......................... 315,000 294,131
5.75% 08/01/2019 .......................... 425,000 392,062
Port of St. Helens Pollution Control
Portland General Electric Co. Series A
4.80% 04/01/2010 .......................... 5,195,000 4,870,312
Port of St. Helens Pollution Control
Portland General Electric Co. Series B
4.80% 06/01/2010 .......................... 3,500,000 3,276,875
Port Umpqua Pollution Control Refunding
International Paper Co. PJS A
5.05% 06/01/2009 .......................... 300,000 284,625
Portland Housing Authority
Refunding Pooled Housing-Series A
4.50% 01/01/2009 .......................... 660,000 621,225
5.00% 01/01/2019 .......................... 5,540,000 4,923,675
5.10% 01/01/2027 .......................... 3,000,000 2,565,000
Portland Housing Authority Multifamily
Housing Senior Lien Civic Apartments
Series A
5.60% 01/01/2018 .......................... 1,240,000 1,221,400
Portland Hydroelectric Power
6.80% 10/01/2004 .......................... 465,000 465,232
Portland Parking Refunding
6.375% 10/01/2012 ......................... 1,700,000 1,704,471
Portland Water System
5.00% 08/01/2017 .......................... 1,185,000 1,109,456
Prineville Sewer First Lien
6.50% 07/01/2004 .......................... 500,000 519,375
Redmond Urban Renewal
Agency Downtown Area B
5.65% 06/01/2013 .......................... 720,000 681,300
5.85% 06/01/2019 .......................... 785,000 732,994
Redmond Urban Renewal Agency
Refunding South Airport Industrial Area A
5.70% 06/01/2019 .......................... 650,000 608,562
</TABLE>
See Accompanying Notes to Financial Statements
72
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------------- --------------
<S> <C> <C>
REVENUE (CONTINUED)
Reedsport Water
7.00% 10/01/2014 .......................... $ 520,000 $ 552,500
Salem Hospital Facility Authority
5.25% 08/15/2014 .......................... 2,900,000 2,747,750
5.00% 08/15/2018 .......................... 2,000,000 1,765,000
Salem Hospital Facility
Authority Capital Manor, Inc.
7.50% 12/01/2024 .......................... 905,000 926,494
Sheridan Water
6.20% 05/01/2015 .......................... 625,000 636,719
6.45% 05/01/2020 .......................... 520,000 527,800
Sheridan Water Refunding
5.35% 04/01/2018 .......................... 300,000 280,500
South Fork Water Board First Lien
5.45% 02/01/2014 .......................... 1,300,000 1,274,000
Tri-County Metropolitan
Transportation District Series A
4.70% 08/01/2010 .......................... 480,000 465,000
Umatilla County Hospital Facility Authority
Catholic Health Initiatives-A
5.75% 12/01/2020 .......................... 530,000 518,075
6.00% 12/01/2030 .......................... 4,825,000 4,794,844
Washington County Housing Authority
Affordable Housing Pool Series A
6.00% 07/01/2020 .......................... 2,000,000 1,812,500
------------
149,326,948
------------
INSURED REVENUE (22.8%)
Clackamas County Health Facility
Authority Refunding Adventist Health A
6.35% 03/01/2009 .......................... 1,525,000 1,584,094
Emerald Peoples Utilities District
7.20% 11/01/2006 .......................... 630,000 708,750
7.35% 11/01/2010 .......................... 2,160,000 2,551,500
7.35% 11/01/2011 .......................... 2,000,000 2,380,000
7.35% 11/01/2012 .......................... 2,490,000 2,991,113
7.35% 11/01/2013 .......................... 2,675,000 3,186,594
Eugene Electric Utility System Series B
4.55% 08/01/2010 .......................... 600,000 564,750
4.65% 08/01/2011 .......................... 625,000 589,844
5.00% 08/01/2018 .......................... 1,000,000 925,000
5.00% 08/01/2023 .......................... 525,000 471,844
Marion County Certificates of Participation
Courthouse Square Project Series A
4.65% 06/01/2012 .......................... 355,000 330,150
5.00% 06/01/2023 .......................... 1,000,000 897,500
Medford Hospital Facilities Authority
Asante Health System Series A
5.25% 08/15/2008 .......................... 1,645,000 1,659,394
5.25% 08/15/2011 .......................... 800,000 797,000
Multnomah County Educational
Facilities University of Portland Project
5.70% 04/01/2015 .......................... 1,000,000 983,750
5.00% 04/01/2018 .......................... 1,530,000 1,430,550
Ontario Catholic Health
Holy Rosary Medical Center
5.50% 11/15/2012 .......................... 1,500,000 1,518,750
Oregon Department of Administrative
Services Certificates Participation Series A
5.30% 05/01/2008 .......................... 750,000 761,250
5.70% 05/01/2015 .......................... 1,000,000 1,016,250
6.25% 05/01/2018 .......................... 1,000,000 1,055,000
5.75% 05/01/2020 .......................... 1,500,000 1,503,750
6.00% 05/01/2012 .......................... 2,695,000 2,876,912
Oregon Department of Administrative
Services Certificates Participation Series B
5.50% 11/01/2011 .......................... 1,635,000 1,671,787
5.00% 11/01/2013 .......................... 1,000,000 973,750
5.00% 11/01/2014 .......................... 500,000 485,625
Oregon Department of Administrative
Services Certificates Participation Series C
5.50% 05/01/2011 .......................... 2,000,000 2,042,500
5.75% 05/01/2017 .......................... 2,000,000 2,012,500
Oregon Department of General
Services Certificates Participation Series C
5.80% 03/01/2015 .......................... 840,000 851,550
Oregon Health Sciences
University Series A
0.00% 07/01/2009 .......................... 1,530,000 961,988
0.00% 08/01/2012 .......................... 1,315,000 692,019
0.00% 07/01/2014 .......................... 2,495,000 1,157,056
0.00% 07/01/2015 .......................... 4,325,000 1,875,969
Oregon Health Sciences University
Capital Appreciation Insured Series A
0.00% 07/01/2021 .......................... 10,315,000 3,004,244
</TABLE>
See Accompanying Notes to Financial Statements
73
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------------- --------------
<S> <C> <C>
INSURED REVENUE (CONTINUED)
Oregon Health, Housing, Educational &
Cultural Facilities Authority
Lewis & Clark College
6.00% 10/01/2013 .......................... $ 965,000 $ 1,001,187
Port of Portland Airport Series 9A
5.50% 07/01/2006 .......................... 500,000 511,250
Port of Portland Airport Refunding
Portland International Airport Series 12B
5.25% 07/01/2012 .......................... 1,000,000 1,003,750
Portland Arena Gas Tax
0.00% 06/01/2016 .......................... 1,100,000 426,250
0.00% 06/01/2017 .......................... 2,320,000 838,100
Portland Gas Tax Series A
5.80% 06/01/2016 .......................... 1,625,000 1,655,469
Portland Sewer System Series A
4.50% 06/01/2015 .......................... 1,510,000 1,336,350
5.00% 06/01/2015 .......................... 2,100,000 2,023,875
4.50% 06/01/2018 .......................... 2,300,000 1,983,750
Oregon Housing & Community
Services Department Single Family
Mortgage Project Series J
5.75% 07/01/2029 .......................... 9,015,000 8,519,175
Tri-County Metropolitan
Transportation District Series One
5.40% 06/01/2019 .......................... 4,200,000 3,993,234
Tualatin Hills Park &
Recreation District
5.75% 03/01/2014 .......................... 990,000 1,035,787
Washington County Housing
Authority Multi-Family
Tualatin Meadows
5.90% 11/01/2018 .......................... 1,000,000 992,500
Washington County Unified
Sewer Agency Series A
0.00% 10/01/2003 .......................... 1,975,000 1,688,625
0.00% 10/01/2005 .......................... 5,230,000 4,027,100
0.00% 10/01/2007 .......................... 4,835,000 3,348,237
5.75% 10/01/2009 .......................... 2,745,000 2,878,819
5.75% 10/01/2010 .......................... 2,000,000 2,107,500
5.75% 10/01/2011 .......................... 1,825,000 1,923,094
5.75% 10/01/2012 .......................... 2,000,000 2,102,500
Washington County Unified
Sewer Agency Senior Lien
5.50% 10/01/2016 .......................... 1,250,000 1,248,437
Western Lane Hospital District Facility
Authority Revenue Refunding Sisters
St. Joseph Peace
5.625% 08/01/2007 ......................... 2,460,000 2,546,100
------------
93,703,822
------------
Total Revenue Bonds
(Cost $248,725,567) ........................ 243,030,770
------------
PRE-REFUNDED BONDS (1.4%)
Clackamas County Hospital Facility
Authority Elderly Housing Willamette
View Income Project
7.00% 11/15/2011 .......................... 470,000 493,500
Clackamas County School District #1
6.30% 07/01/2003 .......................... 700,000 712,488
Clackamas County School
District #115 Gladstone
6.15% 06/01/2014 .......................... 1,200,000 1,278,000
Multnomah County Educational
Facilities University of Portland Project
6.00% 04/01/2014 .......................... 1,000,000 1,048,750
Oregon City Sewer
6.50% 10/01/2007 .......................... 500,000 527,500
Portland Sewer System Series A
6.05% 06/01/2009 .......................... 535,000 563,756
Prineville Sewer First Lien
6.80% 07/01/2012 .......................... 1,050,000 1,124,813
------------
Total Pre-Refunded Bonds
(Cost $5,473,007) .......................... 5,748,807
------------
OTHER BONDS (2.7%)
Grants Pass Urban Renewal
Agency Tax Increment
6.125% 08/01/2012 ......................... 755,000 760,421
Hood River Urban Renewal Agency
6.25% 12/15/2011 .......................... 1,250,000 1,315,625
Lebanon Special Obligation
Revenue Refunding Lease Water
5.40% 10/01/2013 .......................... 755,000 746,506
Medford Urban Renewal
Agency Tax Revenue
5.875% 09/01/2010 ......................... 500,000 513,125
</TABLE>
See Accompanying Notes to Financial Statements
74
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------------- --------------
<S> <C> <C>
OTHER BONDS (CONTINUED)
Multnomah County Certificate Participation
4.55% 08/01/2010 .......................... $1,725,000 $ 1,632,281
Newberg Certificates of Participation
6.10% 12/01/2000 .......................... 410,000 411,976
6.20% 12/01/2001 .......................... 410,000 415,125
Portland Airport Way Urban Renewal &
Redevelopment Tax Increment Series C
5.90% 06/01/2006 .......................... 860,000 892,250
Portland Urban Renewal & Redevelopment
Refunding, Downtown Waterfront Series L
5.90% 05/01/2001 .......................... 200,000 202,706
6.00% 06/01/2002 .......................... 1,170,000 1,196,325
6.40% 06/01/2008 .......................... 3,095,000 3,176,244
------------
Total Other Bonds
(Cost $11,153,750) ......................... 11,262,584
------------
U.S. TERRITORIES BONDS (1.5%)
Guam Housing Corp. Single Family Mortgage
Backed Securities Series A
5.75% 09/01/2031 .......................... 1,500,000 1,423,125
Puerto Rico Housing Finance
Corp. Single Family Mortgage
Revenue Portfolio 1 Series B
7.50% 10/15/2012 .......................... 1,040,000 1,063,722
Puerto Rico Housing Finance
Corp. Single Family Mortgage
Revenue Portfolio 1 Series C
6.75% 10/15/2013 .......................... 710,000 732,188
Puerto Rico Housing Finance Corp.
Multi Family Mortgage Revenue Portfolio A-I
7.50% 04/01/2022 .......................... 1,365,000 1,392,300
Virgin Islands Public Finance Authority
Revenue Unrefunded Balance Series A
7.30% 10/01/2018 .......................... 1,185,000 1,408,669
------------
Total U.S. Territories Bonds
(Cost $5,933,828) .......................... 6,020,004
------------
TAX EXEMPT MONEY MARKET INVESTMENT (0.8%)
SEI Tax Exempt Trust
(Cost $3,314,518) 3,314,518 3,314,518
------------
TOTAL INVESTMENTS (99.0%)
(Cost $413,030,601) 407,911,272
OTHER ASSETS LESS LIABILITIES (1.0%) 4,154,305
------------
TOTAL NET ASSETS (100%) $412,065,577
============
</TABLE>
See Accompanying Notes to Financial Statements
75
<PAGE>
SCHEDULE OF INVESTMENTS
------------------------------------------------------------------------------
-- COLUMBIA HIGH YIELD FUND, INC. --
-----------------------------
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
---------- -----
<S> <C> <C>
CORPORATE BONDS (90.5%)
AUTO & AUTO PARTS (3.5%)
American Axle & Manufacturing, Inc.
Senior Subordinated Notes
9.75% 03/01/2009 ........................... $1,450,000 $1,381,125
Lear Corp
Senior Notes, Series B
7.96% 05/15/2005 ........................... 1,500,000 1,409,961
-----------
2,791,086
-----------
ELECTRIC (4.0%)
AES Corp
Senior Subordinated Notes
10.25% 07/15/2006 .......................... 800,000 796,000
Calpine Corp
Senior Notes
7.625% 04/15/2006 .......................... 1,500,000 1,436,280
CMS Energy X-Tras (144A)
Pass Thru Trust I
Senior Unsecured Notes
7.00% 01/15/2005 ........................... 1,000,000 920,670
-----------
3,152,950
-----------
ENERGY (10.5%)
Gulf Canada Resources Ltd
Senior Subordinated Debentures
9.625% 07/01/2005 .......................... 1,350,000 1,366,875
Newpark Resources, Inc.
Senior Subordinated Notes, Series B
8.625% 12/15/2007 .......................... 1,000,000 877,500
Pride International, Inc.
Senior Notes
10.00% 06/01/2009 .......................... 1,000,000 1,030,000
R&B Falcon Corp.
Senior Notes, Series B
6.50% 04/15/2003 ........................... 500,000 460,000
RBF Finance Co.
Senior Secured Notes
11.00% 03/15/2006 .......................... 1,000,000 1,070,000
Santa Fe Snyder Corp.
Senior Notes
8.05% 06/15/2004 ........................... 1,750,000 1,715,878
Vintage Petroleum, Inc.
Senior Subordinated Notes
9.75% 06/30/2009 ........................... 1,750,000 1,780,625
-----------
8,300,878
-----------
ENTERTAINMENT & MEDIA (19.3%)
Adelphia Communications Corp.
Senior Notes, Series B
10.50% 07/15/2004 ............................ 1,500,000 1,500,000
Chancellor Media Corp.
Senior Subordinated Notes, Series B
8.125% 12/15/2007 ............................ 1,500,000 1,503,750
Charter Communications Holdings L.L.C./
Charter Communications Holdings Capital Corp.
Senior Notes
10.00% 04/01/2009 ............................ 1,500,000 1,458,750
CSC Holdings, Inc.
Senior Notes
7.875% 12/15/2007 ............................ 250,000 241,882
CSC Holdings, Inc.
Senior Debentures, Series B
8.125% 08/15/2009 ............................ 1,400,000 1,360,898
Fox/Liberty Networks L.L.C.
Senior Notes
8.875% 08/15/2007 ............................ 1,500,000 1,492,500
Heritage Media Corp.
Senior Subordinated Notes
8.75% 02/15/2006 ............................. 750,000 738,750
Jones Intercable, Inc.
Senior Notes
8.875% 04/01/2007 ............................ 700,000 712,201
7.625% 04/15/2008 ............................ 300,000 288,924
Lamar Media Corp.
Senior Subordinated Notes
9.625% 12/01/2006 ............................ 1,250,000 1,256,250
Lenfest Communications, Inc.
Senior Notes
8.375% 11/01/2005 ............................ 1,450,000 1,469,488
Outdoor Systems, Inc.
Senior Subordinated Notes
9.375% 10/15/2006 ............................ 1,185,000 1,232,329
Rogers Communications, Inc.
Senior Notes
8.875% 07/15/2007 ............................ 1,000,000 980,000
</TABLE>
See Accompanying Notes to Financial Statements
76
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
---------- -----
<S> <C> <C>
CORPORATE BONDS (CONTINUED)
Shaw Communications, Inc.
Senior Notes
8.25% 04/11/2010 ......................... $ 1,000,000 $ 1,008,110
-----------
15,243,832
-----------
FOREST PRODUCTS (1.8%)
Buckeye Technologies, Inc. .................
Senior Subordinated Notes
8.50% 12/15/2005 ......................... 1,500,000 1,436,250
-----------
HEALTH CARE (4.5%)
Conmed Corp. ...............................
Senior Subordinated Notes
9.00% 03/15/2008 ......................... 1,000,000 912,500
Healthsouth Corp.
Senior Subordinated Notes
9.50% 04/01/2001 ......................... 1,000,000 1,002,500
Tenet Healthcare Corp.
Senior Notes
8.625% 12/01/2003 ........................ 500,000 495,000
Tenet Healthcare Corp.
Senior Subordinated Notes, Series B
8.125% 12/01/2008 ........................ 1,250,000 1,140,625
-----------
3,550,625
-----------
HOTELS & GAMING (6.2%)
Harrahs Operating, Inc.
Senior Subordinated Notes
7.875% 12/15/2005 ........................ 1,250,000 1,175,000
International Game Technology
Senior Notes
7.875% 05/15/2004 ........................ 1,000,000 960,000
Park Place Entertainment Corp.
Senior Subordinated Notes
9.375% 02/15/2007 ........................ 1,500,000 1,500,000
Station Casinos, Inc.
Senior Subordinated Notes
10.125% 03/15/2006 ....................... 500,000 502,500
9.75% 04/15/2007 ......................... 750,000 748,125
-----------
4,885,625
-----------
HOUSEHOLD PRODUCTS (2.1%)
The Scotts Co. (144A)
Senior Subordinated Notes
8.625% 01/15/2009 ........................ 1,750,000 1,688,750
-----------
HOUSING RELATED/REAL ESTATE (2.8%)
Health Care Property Investors, Inc.
Notes
6.875% 06/08/2005 ......................... 1,500,000 1,346,850
Webb (Del) Corp.
Senior Subordinated Debentures
9.375% 05/01/2009 ......................... 1,000,000 830,000
-----------
2,176,850
-----------
MANUFACTURING (4.9%)
Ball Corp. ...................................
Senior Notes
7.75% 08/01/2006 ........................... 2,000,000 1,870,000
Precision Castparts Corp.
Senior Notes
8.75% 03/15/2005 ........................... 1,500,000 1,515,146
Silgan Holdings, Inc.
Senior Subordinated Debentures
9.00% 06/01/2009 ........................... 500,000 455,000
-----------
3,840,146
-----------
METALS/MINING (0.9%)
Ryerson Tull, Inc.
Notes
8.50% 07/15/2001 ........................... 750,000 757,742
-----------
RESTAURANTS (1.2%)
Tricon Global Restaurants, Inc.
Senior Notes
7.45% 05/15/2005 ........................... 1,000,000 937,461
-----------
RETAIL (3.4%)
*Flooring America, Inc.
Senior Subordinated Notes, Series B
12.75% 10/15/2002 .......................... 739,000 389,446
Westpoint Stevens, Inc.
Senior Notes
7.875% 06/15/2005 .......................... 1,500,000 1,252,500
Zale Corp.
Senior Notes, Series B
8.50% 10/01/2007 ........................... 1,110,000 1,032,300
-----------
2,674,246
-----------
SERVICES & PUBLISHING (8.1%)
Allied Waste North America, Inc. .............
Senior Notes, Series B
7.625% 01/01/2006 .......................... 1,200,000 1,044,000
</TABLE>
See Accompanying Notes to Financial Statements
77
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
---------- -----
<S> <C> <C>
CORPORATE BONDS (CONTINUED)
Iron Mountain, Inc.
Senior Subordinated Notes
10.125% 10/01/2006 ....................... $ 1,500,000 $ 1,500,000
United Rentals, Inc.
Senior Subordinated Notes, Series B
9.50% 06/01/2008 ......................... 950,000 869,250
8.80% 08/15/2008 ......................... 500,000 437,500
9.25% 01/15/2009 ......................... 500,000 450,000
United Stationers Supply Co.
Senior Subordinated Notes
8.375% 04/15/2008 ........................ 1,235,000 1,130,025
USA Waste Services, Inc.
Notes
6.125% 07/15/2001 ........................ 1,000,000 965,720
-----------
6,396,495
-----------
TECHNOLOGY (3.2%)
Flextronics International Ltd. (144A)
Senior Subordinated Notes
9.875% 07/01/2010 ........................ 1,000,000 1,007,500
Unisys Corp.
Senior Notes
11.75% 10/15/2004 ........................ 1,400,000 1,484,000
-----------
2,491,500
-----------
TELECOMMUNICATIONS (11.2%)
Crown Castle International Corp.
Senior Notes
10.75% 08/01/2011 ........................ 1,500,000 1,515,000
Flag Ltd.
Senior Notes
8.25% 01/30/2008 ......................... 1,250,000 1,100,000
Level 3 Communications, Inc.
Senior Notes
9.125% 05/01/2008 ........................ 500,000 448,750
Level 3 Communications, Inc.
Senior Discount Notes
0.00% to 12/01/2003 then
10.50% to 12/01/2008 ..................... 2,050,000 1,245,375
McLeodUSA, Inc.
Senior Notes
9.50% 11/01/2008 ......................... 1,500,000 1,455,000
Metromedia Fiber Network, Inc.
Senior Notes, Series B
10.00% 11/15/2008 ........................ 1,450,000 1,431,875
Nextlink Communications, Inc.
Senior Discount Notes
0.00% to 04/15/2003 then
9.45% to 4/15/2008 ....................... 1,000,000 625,000
Nextlink Communications, Inc.
Senior Notes
10.75% 11/15/2008 ........................ 1,000,000 985,000
-----------
8,806,000
-----------
TRANSPORTATION (2.9%)
Allied Holdings, Inc.
Senior Notes, Series B
8.625% 10/01/2007 ........................ 1,000,000 885,000
Delta Air Lines, Inc.
Medium Term Notes, Series C
6.65% 03/15/2004 ......................... 500,000 468,445
Teekay Shipping Corp. Gtd
1st Pfd. Ship. Mtg. Notes
8.32% 02/01/2008 ......................... 1,000,000 930,000
-----------
2,283,445
-----------
Total Corporate Bonds
(Cost $74,762,135) ......................... 71,413,881
-----------
</TABLE>
See Accompanying Notes to Financial Statements
78
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
---------- -----
<S> <C> <C>
REPURCHASE AGREEMENTS (8.2%)
J.P. Morgan Securities, Inc.
6.64% dated 06/30/2000, due 07/03/2000 in
the amount of $3,859,666.
Collateralized by U.S. Treasury Notes
4.875% to 6.625%
due 03/31/2001 to 06/30/2003
U.S. Treasury Bonds 6.375% to 12.375%
due 05/15/2004 to 08/15/2027
U.S. Treasury Bill 5.80% due 09/21/2000 ..... $ 3,858,964 $ 3,858,964
Merrill Lynch
6.54% dated 06/30/2000, due 07/03/2000
in the amount of $2,600,466
Collateralized by U.S. Treasury Bonds
8.75% to 10.625% due
11/15/2009 to 05/15/2017 .................... 2,600,000 2,600,000
-----------
Total Repurchase Agreements
(Cost $6,458,964) ............................ 6,458,964
-----------
TOTAL INVESTMENTS (98.7%)
(Cost $81,221,099) .............................. 77,872,845
OTHER ASSETS LESS LIABILITIES (1.3%) ............. 1,062,425
-----------
NET ASSETS (100.0%) .............................. $78,935,270
===========
</TABLE>
* Flooring America, Inc., filed a bankruptcy petition for reorganization on June
15, 2000. Effective on that date, interest is not being accrued.
See Accompanying Notes to Financial Statements
79
<PAGE>
SCHEDULE OF INVESTMENTS
------------------------------------------------------------------------------
-- COLUMBIA DAILY INCOME COMPANY --
-----------------------------
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
---------- -----
<S> <C> <C>
U.S. GOVERNMENT SECURITIES (4.7%)
*Fannie Mae
6.401% 05/10/2001 ........................ $20,000,000 $ 20,000,000
*Federal Home Loan Bank
6.229% 07/31/2000 ........................ 18,000,000 18,001,807
*Sallie Mae
6.497% 10/02/2000 ........................ 15,000,000 15,013,649
-----------
Total U.S. Government Securities
(Cost $53,015,456) ........................ 53,015,456
-----------
COMMERCIAL PAPER (95.3%)
Abbey National NA
6.57% 09/12/2000 ......................... 25,000,000 24,662,375
Alcoa, Inc.
6.58% 09/07/2000 ......................... 18,405,000 18,172,882
6.56% 09/13/2000 ......................... 15,000,000 14,795,000
American General Finance Corp.
6.50% 07/18/2000 ......................... 13,000,000 12,957,750
6.78% 10/05/2000 ......................... 20,000,000 19,634,633
Archer Daniels Midland Co.
6.10% 07/11/2000 ......................... 8,000,000 7,985,089
6.12% 07/13/2000 ......................... 25,000,000 24,944,750
Associates Corp. NA
6.85% 07/03/2000 ......................... 9,300,000 9,294,691
6.56% 08/01/2000 ......................... 16,000,000 15,906,702
6.54% 10/04/2000 ......................... 5,600,000 5,502,336
AT&T Corp.
6.72% 10/02/2000 ......................... 18,000,000 17,684,160
6.61% 11/02/2000 ......................... 20,000,000 19,540,972
Bank of America Corp.
6.45% 08/02/2000 ......................... 17,000,000 16,899,488
6.64% 10/10/2000 ......................... 20,000,000 19,623,733
Barclays U.S. Funding Corp.
6.59% 07/26/2000 ......................... 13,700,000 13,634,796
Becton, Dickinson & Co.
6.55% 07/27/2000 ......................... 16,000,000 15,921,400
Bell Atlantic Financial Services, Inc.
6.42% 07/10/2000 ......................... 13,000,000 12,976,817
6.57% 07/31/2000 ......................... 8,300,000 8,253,043
6.61% 08/09/2000 ......................... 7,600,000 7,544,182
Bellsouth Capital Funding
6.53% 08/04/2000 ......................... 22,000,000 21,860,331
Caterpillar Financial
Services Corp.
6.48% 07/11/2000 ......................... 14,000,000 13,972,280
6.60% 08/29/2000 ......................... 9,000,000 8,901,000
6.57% 09/28/2000 ......................... 17,000,000 16,720,775
Chevron Transport Corp.
6.65% 10/03/2000 ......................... 11,000,000 10,806,965
6.64% 10/06/2000 ......................... 14,000,000 13,746,942
Chevron U.K. Investment plc
6.57% 09/11/2000 ......................... 15,000,000 14,800,163
CIT Group, Inc.
6.43% 07/07/2000 ......................... 18,000,000 17,977,495
6.58% 09/14/2000 ......................... 21,000,000 20,708,287
Citicorp
6.53% 07/25/2000 ......................... 11,000,000 10,950,118
6.54% 07/25/2000 ......................... 12,500,000 12,443,229
6.53% 07/26/2000 ......................... 6,500,000 6,469,345
Coca Cola Co.
6.54% 09/21/2000 ......................... 15,000,000 14,773,825
DaimlerChrysler NA Holding Corp.
6.10% 07/12/2000 ......................... 20,000,000 19,959,333
6.53% 07/21/2000 ......................... 18,000,000 17,931,435
E. I. du Pont de Nemours & Co.
6.54% 08/09/2000 ......................... 14,000,000 13,898,267
Eastman Kodak Co.
6.58% 09/19/2000 ......................... 16,000,000 15,763,120
Ford Motor Credit Co.
6.60% 07/03/2000 ......................... 8,300,000 8,295,435
6.54% 07/06/2000 ......................... 12,000,000 11,986,920
6.58% 07/07/2000 ......................... 5,400,000 5,393,091
General Electric Capital Corp.
6.77% 07/05/2000 ......................... 8,000,000 7,992,478
6.33% 07/13/2000 ......................... 11,000,000 10,974,856
6.76% 10/12/2000 ......................... 21,500,000 21,080,129
General Motors Acceptance Corp.
6.19% 07/14/2000 ......................... 15,000,000 14,963,892
6.56% 08/11/2000 ......................... 20,000,000 19,846,933
Goldman Sachs & Co.
6.14% 07/10/2000 ......................... 11,000,000 10,981,239
6.57% 08/08/2000 ......................... 15,000,000 14,893,238
Heinz (H.J.) Co.
6.54% 08/03/2000 ......................... 18,000,000 17,888,820
6.57% 08/22/2000 ......................... 11,100,000 10,992,635
</TABLE>
See Accompanying Notes to Financial Statements
80
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
---------- -----
<S> <C> <C>
COMMERCIAL PAPER (CONTINUED)
Household Finance Corp.
6.10% 07/10/2000 ....................... $12,000,000 $ 11,979,667
6.57% 09/25/2000 ....................... 13,000,000 12,793,593
6.69% 10/06/2000 ....................... 15,000,000 14,726,825
International Lease Finance Corp.
6.65% 08/25/2000 ....................... 25,000,000 24,741,389
John Deere Capital Corp.
6.53% 07/24/2000 ....................... 11,000,000 10,952,113
6.61% 09/06/2000 ....................... 14,000,000 13,825,202
6.60% 09/13/2000 ....................... 12,000,000 11,835,000
Lubrizol Corp.
6.46% 07/06/2000 ....................... 16,500,000 16,482,235
Merrill Lynch & Co., Inc.
6.17% 07/14/2000 ....................... 11,000,000 10,973,606
6.48% 07/19/2000 ....................... 26,000,000 25,911,080
MetLife Funding, Inc.
6.12% 07/05/2000 ....................... 20,000,000 19,983,000
6.63% 08/10/2000 ....................... 16,000,000 15,879,187
Minnesota Mining & Manufacturing Co.
6.27% 07/17/2000 ....................... 19,000,000 18,943,744
Morgan Stanley Dean Witter & Co.
6.57% 09/27/2000 ....................... 16,500,000 16,231,999
Motorola Credit Corp.
6.60% 09/29/2000 ....................... 23,000,000 22,616,283
Motorola, Inc.
6.10% 07/07/2000 ....................... 13,000,000 12,984,581
Norwest Financial, Inc.
6.14% 07/03/2000 ....................... 16,000,000 15,991,813
Pharmacia Corp.
6.58% 07/20/2000 ....................... 12,000,000 11,956,133
Prudential Funding Corp.
6.52% 07/28/2000 ....................... 15,000,000 14,923,933
6.64% 08/24/2000 ....................... 16,000,000 15,837,689
Sonoco Products Co.
6.95% 07/05/2000 ....................... 10,000,000 9,990,347
UBS Finance, Inc.
6.08% 07/06/2000 ....................... 20,000,000 19,979,733
6.60% 09/05/2000 ....................... 8,000,000 7,901,733
Walt Disney Co.
6.64% 10/16/2000 ....................... 10,000,000 9,800,800
Wells Fargo & Co.
6.61% 08/23/2000 ....................... 11,000,000 10,890,935
-----------
Total Commercial Paper
(Cost $1,071,039,995) ................... 1,071,039,995
-------------
REPURCHASE AGREEMENT (0.2%)
J.P. Morgan Securities, Inc.
6.64% dated 06/30/2000, due 07/03/2000 in
the amount of $2,731,849.
Collateralized by U.S. Treasury Notes
4.875% to 6.625% due 03/31/2001 to 06/30/2003
U.S. Treasury Bonds 6.375% to
12.375% due 05/15/2004 to 08/15/2027
U.S. Treasury Bill 5.80% due
09/21/2000
(Cost $2,731,352)......................... 2,731,352 2,731,352
-----------
TOTAL INVESTMENTS (100.2%)
(Cost $1,126,786,803)......................... 1,126,786,803
OTHER ASSETS LESS LIABILITIES (-0.2%).......... (2,271,658)
-----------
NET ASSETS (100.0%)............................ $1,124,515,145
==============
</TABLE>
* Floating rate note whose interest rate is reset periodically based on an
index. The interest rate shown reflects the rate currently in effect.
See Accompanying Notes to Financial Statements
81
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
--------------------------------------------------------------------------------
COLUMBIA FUNDS
June 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
COMMON INTERNATIONAL
STOCK GROWTH STOCK
FUND FUND FUND
--------------- --------------- ---------------
<S> <C> <C> <C>
ASSETS:
Investments at cost ............................................... $ 691,252,196 $ 1,506,464,502 $ 183,459,784
Investments at cost -- federal income tax purposes ................ $ 693,806,263 $ 1,509,660,764 $ 183,459,784
--------------------------------------------------------------------- --------------- --------------- ---------------
Investments at value .............................................. $ 1,006,295,430 $ 2,353,040,330 $ 215,834,245
Cash .............................................................. -- -- 54,859
Cash denominated in foreign currencies (cost $10,276,137).......... -- -- 10,263,098
Receivable for:
Investments sold ................................................ 13,352,362 14,130,347 1,349,464
Capital stock sold .............................................. 464,810 947,070 394,754
Interest ........................................................ 50,260 277,658 150,885
Dividends ....................................................... 272,435 410,909 318,404
Expense reimbursement ........................................... -- -- --
--------------- --------------- ---------------
Total assets ...................................................... 1,020,435,297 2,368,806,314 228,365,709
--------------- --------------- ---------------
LIABILITIES:
Payable for:
Investments purchased ........................................... 10,897,234 13,493,521 --
Capital stock redeemed .......................................... 3,851,043 1,815,420 2,239,079
Dividends and distributions ..................................... -- -- --
Investment management fees ...................................... 495,668 1,021,996 189,196
Accrued expenses ................................................ 190,393 309,028 137,957
--------------- --------------- ---------------
Total liabilities ................................................. 15,434,338 16,639,965 2,566,232
--------------- --------------- ---------------
NET ASSETS .......................................................... $ 1,005,000,959 $ 2,352,166,349 $ 225,799,477
=============== =============== ===============
NET ASSETS consist of:
Paid-in capital ................................................... $ 584,456,339 $ 1,278,414,620 $ 157,816,539
Undistributed net investment income (loss) ........................ (613,866) (2,260,081) 88,035
Undistributed net realized gain (loss) from:
Investment transactions ......................................... 106,115,252 229,435,982 35,857,367
Foreign currency transactions ................................... -- -- (314,067)
Unrealized appreciation (depreciation) on:
Investments ..................................................... 315,043,234 846,575,828 32,374,461
Translation of other assets and liabilities in foreign currencies -- -- (22,858)
--------------- --------------- ---------------
NET ASSETS .......................................................... $ 1,005,000,959 $ 2,352,166,349 $ 225,799,477
=============== =============== ===============
SHARES OF CAPITAL STOCK OUTSTANDING ................................. 32,510,172 43,546,139 11,248,849
=============== =============== ===============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE ............ $ 30.91 $ 54.02 $ 20.07
=============== =============== ===============
<CAPTION>
SPECIAL SMALL CAP
FUND FUND
---------------- ---------------
<S> <C> <C>
ASSETS:
Investments at cost ............................................... $ 800,946,629 $ 360,755,960
Investments at cost -- federal income tax purposes ................ $ 803,994,456 $ 362,038,040
--------------------------------------------------------------------- ---------------- ---------------
Investments at value .............................................. $ 1,161,383,819 $ 466,272,168
Cash .............................................................. -- --
Cash denominated in foreign currencies (cost $10,276,137).......... -- --
Receivable for:
Investments sold ................................................ 5,998,030 3,231,908
Capital stock sold .............................................. 2,965,769 2,447,182
Interest ........................................................ 226,386 195,097
Dividends ....................................................... 345,518 6,563
Expense reimbursement ........................................... -- --
---------------- ---------------
Total assets ...................................................... 1,170,919,522 472,152,918
---------------- ---------------
LIABILITIES:
Payable for:
Investments purchased ........................................... 16,639,383 2,821,738
Capital stock redeemed .......................................... 2,069,537 665,295
Dividends and distributions ..................................... -- --
Investment management fees ...................................... 794,731 359,963
Accrued expenses ................................................ 200,254 91,294
---------------- ---------------
Total liabilities ................................................. 19,703,905 3,938,290
---------------- ---------------
NET ASSETS .......................................................... $ 1,151,215,617 $ 468,214,628
================ ===============
NET ASSETS consist of:
Paid-in capital ................................................... $ 515,751,012 $ 298,053,520
Undistributed net investment income (loss) ........................ (2,481,082) (1,135,999)
Undistributed net realized gain (loss) from:
Investment transactions ......................................... 277,508,497 65,780,899
Foreign currency transactions ................................... -- --
Unrealized appreciation (depreciation) on:
Investments ..................................................... 360,437,190 105,516,208
Translation of other assets and liabilities in foreign currencies -- --
---------------- ---------------
NET ASSETS .......................................................... $ 1,151,215,617 $ 468,214,628
================ ===============
SHARES OF CAPITAL STOCK OUTSTANDING ................................. 31,567,401 14,552,041
================ ===============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE ............ $ 36.47 $ 32.18
================ ===============
</TABLE>
See Accompanying Notes to Financial Statements
82
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S.
REAL ESTATE GOVERNMENT
EQUITY BALANCED SECURITIES
FUND FUND FUND
---------------- --------------- ---------------
<S> <C> <C> <C>
ASSETS:
Investments at cost ............................................... $ 320,143,457 $ 889,743,529 $ 35,689,401
Investments at cost -- federal income tax purposes ................ $ 317,088,115 $ 890,562,508 $ 35,784,415
--------------------------------------------------------------------- ---------------- --------------- ---------------
Investments at value .............................................. $ 337,847,865 $ 1,081,174,943 $ 35,551,162
Cash .............................................................. -- -- --
Cash denominated in foreign currencies (cost $10,276,137).......... $ -- -- --
Receivable for:
Investments sold ................................................ 108,994 28,672,559 --
Capital stock sold .............................................. 2,709,587 582,547 560,393
Interest ........................................................ 93,633 5,169,144 109,132
Dividends ....................................................... 2,006,816 203,015 --
Expense reimbursement ........................................... -- -- --
---------------- --------------- ---------------
Total assets ...................................................... 342,766,895 1,115,802,208 36,220,687
---------------- --------------- ---------------
LIABILITIES:
Payable for:
Investments purchased ........................................... 2,404,560 23,652,335 --
Capital stock redeemed .......................................... 1,145,627 2,881,428 584,368
Dividends and distributions ..................................... 137,277 113,140 8,031
Investment management fees ...................................... 199,883 444,463 14,591
Accrued expenses ................................................ 104,334 231,550 28,744
---------------- --------------- ---------------
Total liabilities ................................................. 3,991,681 27,322,916 635,734
---------------- --------------- ---------------
NET ASSETS .......................................................... $ 338,775,214 $ 1,088,479,292 $ 35,584,953
================ =============== ===============
NET ASSETS consist of:
Paid-in capital ................................................... $ 328,746,702 $ 831,049,322 $ 36,196,008
Undistributed net investment income (loss) ........................ 144,318 465,743 --
Undistributed net realized gain (loss) from:
Investment transactions ......................................... (7,820,214) 65,532,813 (472,816)
Foreign currency transactions ................................... -- -- --
Unrealized appreciation (depreciation) on:
Investments ..................................................... 17,704,408 191,431,414 (138,239)
Translation of other assets and liabilities in foreign currencies -- -- --
---------------- --------------- ---------------
NET ASSETS .......................................................... $ 338,775,214 $ 1,088,479,292 $ 35,584,953
================ =============== ===============
SHARES OF CAPITAL STOCK OUTSTANDING ................................. 20,835,621 42,306,671 4,340,741
================ =============== ===============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE ............ $ 16.26 $ 25.73 $ 8.20
================ =============== ===============
<CAPTION>
FIXED NATIONAL OREGON
INCOME MUNICIPAL MUNICIPAL
SECURITIES BOND BOND
FUND FUND FUND
---------------- --------------- ---------------
<S> <C> <C> <C>
ASSETS:
Investments at cost ............................................... $ 383,836,169 $ 10,810,602 $ 413,030,601
Investments at cost -- federal income tax purposes ................ $ 384,066,428 $ 10,810,602 $ 413,057,041
--------------------------------------------------------------------- ---------------- --------------- ---------------
Investments at value .............................................. $ 377,046,622 $ 10,610,164 $ 407,911,272
Cash .............................................................. -- -- --
Cash denominated in foreign currencies (cost $10,276,137).......... $ -- -- --
Receivable for:
Investments sold ................................................ 11,980,867 -- --
Capital stock sold .............................................. 221,095 121 7,892
Interest ........................................................ 4,763,446 161,600 5,455,857
Dividends ....................................................... -- -- --
Expense reimbursement ........................................... -- 18,512 --
---------------- --------------- ---------------
Total assets ...................................................... 394,012,030 10,790,397 413,375,021
---------------- --------------- ---------------
LIABILITIES:
Payable for:
Investments purchased ........................................... 11,725,611 -- --
Capital stock redeemed .......................................... 389,740 -- 728,188
Dividends and distributions ..................................... 235,892 2,344 357,208
Investment management fees ...................................... 155,811 4,338 167,592
Accrued expenses ................................................ 89,477 20,177 56,456
---------------- --------------- ---------------
Total liabilities ................................................. 12,596,531 26,859 1,309,444
---------------- --------------- ---------------
NET ASSETS .......................................................... $ 381,415,499 $ 10,763,538 $ 412,065,577
================ =============== ===============
NET ASSETS consist of:
Paid-in capital ................................................... $ 403,868,383 $ 11,013,048 $ 417,305,804
Undistributed net investment income (loss) ........................ -- -- --
Undistributed net realized gain (loss) from:
Investment transactions ......................................... (15,663,337) (49,072) (120,898)
Foreign currency transactions ................................... -- -- --
Unrealized appreciation (depreciation) on:
Investments ..................................................... (6,789,547) (200,438) (5,119,329)
Translation of other assets and liabilities in foreign currencies -- -- --
---------------- --------------- ---------------
NET ASSETS .......................................................... $ 381,415,499 $ 10,763,538 $ 412,065,577
================ =============== ===============
SHARES OF CAPITAL STOCK OUTSTANDING ................................. 30,622,244 1,143,100 35,279,053
================ =============== ===============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE ............ $ 12.46 $ 9.42 $ 11.68
================ =============== ===============
<CAPTION>
COLUMBIA
HIGH YIELD DAILY INCOME
FUND COMPANY
--------------- ---------------
<S> <C> <C>
ASSETS:
Investments at cost ............................................... $ 81,221,099 $ 1,126,786,803
Investments at cost -- federal income tax purposes ................ $ 81,226,724 $ 1,126,786,803
--------------------------------------------------------------------- --------------- ---------------
Investments at value .............................................. $ 77,872,845 $ 1,126,786,803
Cash .............................................................. -- 4,000,001
Cash denominated in foreign currencies (cost $10,276,137).......... -- --
Receivable for:
Investments sold ................................................ 1,358,650 --
Capital stock sold .............................................. 110,032 2,335,532
Interest ........................................................ 1,501,270 896,391
Dividends ....................................................... -- --
Expense reimbursement ........................................... -- --
--------------- ---------------
Total assets ...................................................... 80,842,797 1,134,018,727
--------------- ---------------
LIABILITIES:
Payable for:
Investments purchased ........................................... 1,528,125 --
Capital stock redeemed .......................................... 251,356 8,715,514
Dividends and distributions ..................................... 53,935 --
Investment management fees ...................................... 37,343 434,926
Accrued expenses ................................................ 36,768 353,142
--------------- ---------------
Total liabilities ................................................. 1,907,527 9,503,582
--------------- ---------------
NET ASSETS .......................................................... $ 78,935,270 $ 1,124,515,145
=============== ===============
NET ASSETS consist of:
Paid-in capital ................................................... $ 84,335,144 $ 1,124,515,145
Undistributed net investment income (loss) ........................ -- --
Undistributed net realized gain (loss) from:
Investment transactions ......................................... (2,051,620) --
Foreign currency transactions ................................... -- --
Unrealized appreciation (depreciation) on:
Investments ..................................................... (3,348,254) --
Translation of other assets and liabilities in foreign currencies -- --
--------------- ---------------
NET ASSETS .......................................................... $ 78,935,270 $ 1,124,515,145
=============== ===============
SHARES OF CAPITAL STOCK OUTSTANDING ................................. 8,688,857 1,124,515,145
=============== ===============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE ............ $ 9.08 $ 1.00
=============== ===============
</TABLE>
See Accompanying Notes to Financial Statements
83
<PAGE>
STATEMENTS OF OPERATIONS
--------------------------------------------------------------------------------
COLUMBIA FUNDS
For the six months ended June 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
COMMON INTERNATIONAL
STOCK GROWTH STOCK
FUND FUND FUND
--------------- --------------- ---------------
<S> <C> <C> <C>
NET INVESTMENT INCOME:
Income:
Interest ........................................................ $ 505,044 $ 1,199,825 $ 687,332
Dividends ....................................................... 2,521,674 3,722,913 1,220,336
Foreign withholding tax on dividend income ...................... -- -- (141,856)
--------------- --------------- ---------------
Total income .................................................. 3,026,718 4,922,738 1,765,812
--------------- --------------- ---------------
Expenses:
Investment management fees ...................................... 2,910,036 5,971,133 1,211,055
Transfer agent fees and expenses ................................ 425,605 741,429 260,057
Shareholder servicing fees ...................................... 152,563 86,129 8,425
Postage, printing, and other .................................... 73,801 258,150 70,322
Custodian fees .................................................. 48,907 96,123 97,154
Registration and filing fees .................................... 17,645 18,461 16,101
Legal, insurance, and audit fees ................................ 20,776 28,467 21,208
Directors' fees ................................................. 3,905 8,890 968
--------------- --------------- ---------------
Total expenses ................................................ 3,653,238 7,208,782 1,685,290
Fees paid indirectly/expense reimbursements ..................... (12,654) (25,963) (7,513)
--------------- --------------- ---------------
Net expenses .................................................. 3,640,584 7,182,819 1,677,777
--------------- --------------- ---------------
Net investment income (loss) ...................................... (613,866) (2,260,081) 88,035
--------------- --------------- ---------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain (loss) from:
Investment transactions ......................................... 81,024,205 160,547,998 24,838,297
Foreign currency transactions ................................... -- -- (240,956)
--------------- --------------- ---------------
Net realized gain (loss) ...................................... 81,024,205 160,547,998 24,597,341
--------------- --------------- ---------------
Change in net unrealized appreciation or (depreciation) on:
Investments ..................................................... (16,009,253) 61,894,379 (55,586,108)
Translation of other assets and liabilities in foreign currencies -- -- (18,542)
--------------- --------------- ---------------
Change in net unrealized appreciation or (depreciation) ....... (16,009,253) 61,894,379 (55,604,650)
--------------- --------------- ---------------
Net realized and unrealized gain (loss) on investments ........ 65,014,952 222,442,377 (31,007,309)
--------------- --------------- ---------------
NET INCREASE (DECREASE) RESULTING
FROM OPERATIONS ................................................... $ 64,401,086 $ 220,182,296 $ (30,919,274)
=============== =============== ===============
<CAPTION>
SPECIAL SMALL CAP
FUND FUND
--------------- ---------------
<S> <C> <C>
NET INVESTMENT INCOME:
Income:
Interest ........................................................ $ 1,780,059 $ 1,069,813
Dividends ....................................................... 1,120,547 196,717
Foreign withholding tax on dividend income ...................... -- --
--------------- ---------------
Total income .................................................. 2,900,606 1,266,530
--------------- ---------------
Expenses:
Investment management fees ...................................... 4,685,714 1,983,499
Transfer agent fees and expenses ................................ 440,872 199,374
Shareholder servicing fees ...................................... 110,532 89,335
Postage, printing, and other .................................... 56,879 20,895
Custodian fees .................................................. 59,650 44,226
Registration and filing fees .................................... 16,417 52,300
Legal, insurance, and audit fees ................................ 24,644 18,960
Directors' fees ................................................. 4,260 1,528
--------------- ---------------
Total expenses ................................................ 5,398,968 2,410,117
Fees paid indirectly/expense reimbursements ..................... (17,280) (7,588)
--------------- ---------------
Net expenses .................................................. 5,381,688 2,402,529
--------------- ---------------
Net investment income (loss) ...................................... (2,481,082) (1,135,999)
--------------- ---------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain (loss) from:
Investment transactions ......................................... 170,389,752 46,892,738
Foreign currency transactions ................................... -- --
--------------- ---------------
Net realized gain (loss) ...................................... 170,389,752 46,892,738
--------------- ---------------
Change in net unrealized appreciation or (depreciation) on:
Investments ..................................................... 33,140,893 11,741,139
Translation of other assets and liabilities in foreign currencies -- --
--------------- ---------------
Change in net unrealized appreciation or (depreciation) ....... 33,140,893 11,741,139
--------------- ---------------
Net realized and unrealized gain (loss) on investments ........ 203,530,645 58,633,877
--------------- ---------------
NET INCREASE (DECREASE) RESULTING
FROM OPERATIONS ................................................... $ 201,049,563 $ 57,497,878
=============== ===============
</TABLE>
See Accompanying Notes to Financial Statements
84
<PAGE>
<TABLE>
<CAPTION>
U.S.
REAL ESTATE GOVERNMENT
EQUITY BALANCED SECURITIES
FUND FUND FUND
--------------- --------------- ---------------
<S> <C> <C> <C>
NET INVESTMENT INCOME:
Income:
Interest ........................................................ $ 420,764 $ 16,077,696 $ 1,012,143
Dividends ....................................................... 8,009,511 1,555,630 --
Foreign withholding tax on dividend income ...................... -- -- --
--------------- --------------- ---------------
Total income .................................................. 8,430,275 17,633,326 1,012,143
--------------- --------------- ---------------
Expenses:
Investment management fees ...................................... 1,041,284 2,601,770 88,973
Transfer agent fees and expenses ................................ 102,578 464,737 47,085
Shareholder servicing fees ...................................... 113,981 164,959 51
Postage, printing, and other .................................... 55,506 68,596 6,211
Custodian fees .................................................. 18,441 56,675 3,283
Registration and filing fees .................................... 50,108 12,433 4,987
Legal, insurance, and audit fees ................................ 14,292 23,091 10,948
Directors' fees ................................................. 1,087 4,207 145
--------------- --------------- ---------------
Total expenses ................................................ 1,397,277 3,396,468 161,683
Fees paid indirectly/expense reimbursements ..................... (4,974) (13,864) (1,481)
--------------- --------------- ---------------
Net expenses .................................................. 1,392,303 3,382,604 160,202
--------------- --------------- ---------------
Net investment income (loss) ...................................... 7,037,972 14,250,722 851,941
--------------- --------------- ---------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain (loss) from:
Investment transactions ......................................... (486,105) 45,677,829 (136,254)
Foreign currency transactions ................................... -- -- --
--------------- --------------- ---------------
Net realized gain (loss) ...................................... (486,105) 45,677,829 (136,254)
--------------- --------------- ---------------
Change in net unrealized appreciation or (depreciation) on:
Investments ..................................................... 30,956,046 (4,773,949) 126,107
Translation of other assets and liabilities in foreign currencies -- -- --
--------------- --------------- ---------------
Change in net unrealized appreciation or (depreciation) ....... 30,956,046 (4,773,949) 126,107
--------------- --------------- ---------------
Net realized and unrealized gain (loss) on investments ........ 30,469,941 40,903,880 (10,147)
--------------- --------------- ---------------
NET INCREASE (DECREASE) RESULTING
FROM OPERATIONS ................................................... $ 37,507,913 $ 55,154,602 $ 841,794
=============== =============== ===============
<CAPTION>
FIXED NATIONAL OREGON
INCOME MUNICIPAL MUNICIPAL
SECURITIES BOND BOND
FUND FUND FUND
--------------- --------------- ---------------
<S> <C> <C> <C>
NET INVESTMENT INCOME:
Income:
Interest ........................................................ $ 13,680,875 $ 275,633 $ 11,161,660
Dividends ....................................................... -- -- --
Foreign withholding tax on dividend income ...................... -- -- --
--------------- --------------- ---------------
Total income .................................................. 13,680,875 275,633 11,161,660
--------------- --------------- ---------------
Expenses:
Investment management fees ...................................... 950,213 25,614 1,003,103
Transfer agent fees and expenses ................................ 174,974 18,586 78,133
Shareholder servicing fees ...................................... 48,298 -- 5,467
Postage, printing, and other .................................... 44,106 10,531 40,956
Custodian fees .................................................. 23,947 917 15,070
Registration and filing fees .................................... 20,639 2,089 4,598
Legal, insurance, and audit fees ................................ 17,626 12,845 20,130
Directors' fees ................................................. 1,548 40 1,634
--------------- --------------- ---------------
Total expenses ................................................ 1,281,351 70,622 1,169,091
Fees paid indirectly/expense reimbursements ..................... (6,243) (37,324) (2,965)
--------------- --------------- ---------------
Net expenses .................................................. 1,275,108 33,298 1,166,126
--------------- --------------- ---------------
Net investment income (loss) ...................................... 12,405,767 242,335 9,995,534
--------------- --------------- ---------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain (loss) from:
Investment transactions ......................................... (6,414,309) (44,834) (48,277)
Foreign currency transactions ................................... -- -- --
--------------- --------------- ---------------
Net realized gain (loss) ...................................... (6,414,309) (44,834) (48,277)
--------------- --------------- ---------------
Change in net unrealized appreciation or (depreciation) on:
Investments ..................................................... 6,930,088 200,205 4,251,445
Translation of other assets and liabilities in foreign currencies -- -- --
--------------- --------------- ---------------
Change in net unrealized appreciation or (depreciation) ....... 6,930,088 200,205 4,251,445
--------------- --------------- ---------------
Net realized and unrealized gain (loss) on investments ........ 515,779 155,371 4,203,168
--------------- --------------- ---------------
NET INCREASE (DECREASE) RESULTING
FROM OPERATIONS ................................................... $ 12,921,546 $ 397,706 $ 14,198,702
=============== =============== ===============
<CAPTION>
COLUMBIA
HIGH YIELD DAILY INCOME
FUND COMPANY
--------------- ---------------
<S> <C> <C>
NET INVESTMENT INCOME:
Income:
Interest ........................................................ $ 3,306,336 $ 36,684,911
Dividends ....................................................... -- --
Foreign withholding tax on dividend income ...................... -- --
--------------- ---------------
Total income .................................................. 3,306,336 36,684,911
--------------- ---------------
Expenses:
Investment management fees ...................................... 216,719 2,759,061
Transfer agent fees and expenses ................................ 55,346 510,749
Shareholder servicing fees ...................................... 18,218 343
Postage, printing, and other .................................... 10,508 128,904
Custodian fees .................................................. 7,675 167,103
Registration and filing fees .................................... 13,291 19,749
Legal, insurance, and audit fees ................................ 12,311 23,350
Directors' fees ................................................. 293 4,813
--------------- ---------------
Total expenses ................................................ 334,361 3,614,072
Fees paid indirectly/expense reimbursements ..................... (2,467) (51,498)
--------------- ---------------
Net expenses .................................................. 331,894 3,562,574
--------------- ---------------
Net investment income (loss) ...................................... 2,974,442 33,122,337
--------------- ---------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain (loss) from:
Investment transactions ......................................... (925,529) --
Foreign currency transactions ................................... -- --
--------------- ---------------
Net realized gain (loss) ...................................... (925,529) --
--------------- ---------------
Change in net unrealized appreciation or (depreciation) on:
Investments ..................................................... (879,357) --
Translation of other assets and liabilities in foreign currencies -- --
--------------- ---------------
Change in net unrealized appreciation or (depreciation) ....... (879,357) --
--------------- ---------------
Net realized and unrealized gain (loss) on investments ........ (1,804,886) --
--------------- ---------------
NET INCREASE (DECREASE) RESULTING
FROM OPERATIONS ................................................... $ 1,169,556 $ 33,122,337
=============== ===============
</TABLE>
See Accompanying Notes to Financial Statements
85
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
COLUMBIA FUNDS
<TABLE>
<CAPTION>
COMMON STOCK FUND
---------------------------------
SIX MONTHS YEAR
ENDED ENDED
JUNE 30, 2000 DECEMBER 31,
(UNAUDITED) 1999
--------------- ---------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) .................................... $ (613,866) $ 798,941
Net realized gain (loss) from:
Investment transactions ....................................... 81,024,205 97,974,252
Foreign currency transactions ................................. -- --
Change in net unrealized appreciation or (depreciation) on:
Investments ................................................... (16,009,253) 103,218,921
Translation of other assets and liabilities in foreign
currencies ................................................... -- --
--------------- ---------------
Net increase (decrease) resulting from operations ............... 64,401,086 201,992,114
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income ...................................... -- (954,346)
From net realized gain from investment transactions and
foreign currency transactions ................................. -- (54,980,735)
From return of capital .......................................... -- --
NET CAPITAL SHARE TRANSACTIONS ...................................... (19,310,070) 16,706,345
--------------- ---------------
Net increase (decrease) in net assets ............................... 45,091,016 162,763,378
NET ASSETS:
Beginning of period ............................................. 959,909,943 797,146,565
--------------- ---------------
End of period ................................................... $ 1,005,000,959 $ 959,909,943
=============== ===============
Undistributed net investment income (loss)
at end of period .................................................. $ (613,866) $ --
=============== ===============
<CAPTION>
U.S. GOVERNMENT
SECURITIES FUND
---------------------------------
SIX MONTHS YEAR
ENDED ENDED
JUNE 30, 2000 DECEMBER 31,
(UNAUDITED) 1999
--------------- ---------------
<S> <C> <C>
OPERATIONS:
Net investment income ........................................... $ 851,941 $ 1,564,524
Net realized gain (loss) from investment transactions ........... (136,254) (336,562)
Change in net unrealized appreciation or (depreciation)
on investments ................................................ 126,107 (537,091)
--------------- ---------------
Net increase (decrease) resulting from operations ............... 841,794 690,871
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income ...................................... (851,941) (1,564,524)
From net realized gain from investment transactions ............. -- (21,399)
NET CAPITAL SHARE TRANSACTIONS ...................................... (2,476,751) (1,610,963)
--------------- ---------------
Net increase (decrease) in net assets ............................... (2,486,898) (2,506,015)
NET ASSETS:
Beginning of period ............................................... 38,071,851 40,577,866
--------------- ---------------
End of period ..................................................... $ 35,584,953 $ 38,071,851
=============== ===============
<CAPTION>
GROWTH FUND
----------------------------------
SIX MONTHS YEAR
ENDED ENDED
JUNE 30, 2000 DECEMBER 31,
(UNAUDITED) 1999
--------------- ----------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) .................................... $ (2,260,081) $ (1,286,446)
Net realized gain (loss) from:
Investment transactions ....................................... 160,547,998 293,681,987
Foreign currency transactions ................................. -- --
Change in net unrealized appreciation or (depreciation) on:
Investments ................................................... 61,894,379 158,791,288
Translation of other assets and liabilities in foreign
currencies ................................................... -- --
--------------- ----------------
Net increase (decrease) resulting from operations ............... 220,182,296 451,186,829
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income ...................................... -- (31,399)
From net realized gain from investment transactions and
foreign currency transactions ................................. -- (188,737,105)
From return of capital .......................................... -- --
NET CAPITAL SHARE TRANSACTIONS ...................................... (28,754,467) 145,296,654
--------------- ----------------
Net increase (decrease) in net assets ............................... 191,427,829 407,714,979
NET ASSETS:
Beginning of period ............................................. 2,160,738,520 1,753,023,541
--------------- ----------------
End of period ................................................... $ 2,352,166,349 $ 2,160,738,520
=============== ===============
Undistributed net investment income (loss)
at end of period .................................................. $ (2,260,081) $ --
=============== ===============
<CAPTION>
FIXED INCOME
SECURITIES FUND
----------------------------------
SIX MONTHS YEAR
ENDED ENDED
JUNE 30, 2000 DECEMBER 31,
(UNAUDITED) 1999
--------------- ----------------
<S> <C> <C>
OPERATIONS:
Net investment income ........................................... $ 12,405,767 $ 25,394,003
Net realized gain (loss) from investment transactions ........... (6,414,309) (9,249,028)
Change in net unrealized appreciation or (depreciation)
on investments ................................................ 6,930,088 (23,036,495)
--------------- ----------------
Net increase (decrease) resulting from operations ............... 12,921,546 (6,891,520)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income ...................................... (12,405,767) (25,394,003)
From net realized gain from investment transactions ............. -- (123,381)
NET CAPITAL SHARE TRANSACTIONS ...................................... (16,247,234) 7,225,727
--------------- ----------------
Net increase (decrease) in net assets ............................... (15,731,455) (25,183,177)
NET ASSETS:
Beginning of period ............................................... 397,146,954 422,330,131
--------------- ----------------
End of period ..................................................... $ 381,415,499 $ 397,146,954
=============== ===============
<CAPTION>
INTERNATIONAL STOCK FUND
----------------------------------
SIX MONTHS YEAR
ENDED ENDED
JUNE 30, 2000 DECEMBER 31,
(UNAUDITED) 1999
--------------- ---------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) .................................... $ 88,035 $ (557,313)
Net realized gain (loss) from:
Investment transactions ....................................... 24,838,297 31,646,061
Foreign currency transactions ................................. (240,956) (447,670)
Change in net unrealized appreciation or (depreciation) on:
Investments ................................................... (55,586,108) 53,446,643
Translation of other assets and liabilities in foreign
currencies ................................................... (18,542) (8,562)
--------------- ---------------
Net increase (decrease) resulting from operations ............... (30,919,274) 84,079,159
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income ...................................... -- --
From net realized gain from investment transactions and
foreign currency transactions ................................. -- (15,581,514)
From return of capital .......................................... -- --
NET CAPITAL SHARE TRANSACTIONS ...................................... 17,495,832 36,532,274
--------------- ---------------
Net increase (decrease) in net assets ............................... (13,423,442) 105,029,919
NET ASSETS:
Beginning of period ............................................. 239,222,919 134,193,000
--------------- ---------------
End of period ................................................... $ 225,799,477 $ 239,222,919
=============== ===============
Undistributed net investment income (loss)
at end of period .................................................. $ 88,035 $ --
=============== ===============
<CAPTION>
NATIONAL MUNICIPAL
BOND FUND
----------------------------------
SIX MONTHS FEBRUARY 10
ENDED THROUGH
JUNE 30, 2000 DECEMBER 31,
(UNAUDITED) 1999
--------------- ---------------
<S> <C> <C>
OPERATIONS:
Net investment income ........................................... $ 242,335 $ 227,984
Net realized gain (loss) from investment transactions ........... (44,834) (4,238)
Change in net unrealized appreciation or (depreciation)
on investments ................................................ 200,205 (400,643)
--------------- ---------------
Net increase (decrease) resulting from operations ............... 397,706 (176,897)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income ...................................... (242,335) (227,984)
From net realized gain from investment transactions ............. -- --
NET CAPITAL SHARE TRANSACTIONS ...................................... 473,245 10,539,803
--------------- ---------------
Net increase (decrease) in net assets ............................... 628,616 10,134,922
NET ASSETS:
Beginning of period ............................................... 10,134,922 --
--------------- ---------------
End of period ..................................................... $ 10,763,538 $ 10,134,922
=============== ===============
</TABLE>
See Accompanying Notes to Financial Statements
86
<PAGE>
<TABLE>
<CAPTION>
SPECIAL FUND
----------------------------------
SIX MONTHS YEAR
ENDED ENDED
JUNE 30, 2000 DECEMBER 31,
(UNAUDITED) 1999
--------------- ---------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) .................................... $ (2,481,082) $ (4,980,345)
Net realized gain (loss) from:
Investment transactions ....................................... 170,389,752 202,258,383
Foreign currency transactions ................................. -- --
Change in net unrealized appreciation or (depreciation) on:
Investments ................................................... 33,140,893 38,703,738
Translation of other assets and liabilities in foreign
currencies ................................................... -- --
--------------- ---------------
Net increase (decrease) resulting from operations ............... 201,049,563 235,981,776
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income ...................................... -- --
From net realized gain from investment transactions and
foreign currency transactions ................................. -- (64,905,812)
From return of capital .......................................... -- --
NET CAPITAL SHARE TRANSACTIONS ...................................... 31,844,062 (222,112,863)
--------------- ---------------
Net increase (decrease) in net assets ............................... 232,893,625 (51,036,899)
NET ASSETS:
Beginning of period ............................................. 918,321,992 969,358,891
--------------- ---------------
End of period ....................................................... $ 1,151,215,617 $ 918,321,992
=============== ===============
Undistributed net investment income (loss)
at end of period .................................................. $ (2,481,082) $ --
=============== ===============
<CAPTION>
OREGON MUNICIPAL
BOND FUND
----------------------------------
SIX MONTHS YEAR
ENDED ENDED
JUNE 30, 2000 DECEMBER 31,
(UNAUDITED) 1999
--------------- ---------------
<S> <C> <C>
OPERATIONS:
Net investment income ........................................... $ 9,995,534 $ 20,838,199
Net realized gain (loss) from investment transactions ........... (48,277) 583,400
Change in net unrealized appreciation or (depreciation)
on investments ................................................ 4,251,445 (33,170,458)
--------------- ---------------
Net increase (decrease) resulting from operations ............... 14,198,702 (11,748,859)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income ...................................... (9,995,534) (20,838,199)
From net realized gain from investment transactions ............. -- (664,050)
NET CAPITAL SHARE TRANSACTIONS ...................................... (2,056,132) (19,639,074)
--------------- ---------------
Net increase (decrease) in net assets ............................... 2,147,036 (52,890,182)
NET ASSETS:
Beginning of period ............................................... 409,918,541 462,808,723
--------------- ---------------
End of period ..................................................... $ 412,065,577 $ 409,918,541
=============== ===============
<CAPTION>
SMALL CAP FUND
----------------------------------
SIX MONTHS YEAR
ENDED ENDED
JUNE 30, 2000 DECEMBER 31,
(UNAUDITED) 1999
--------------- ---------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) .................................... $ (1,135,999) $ (1,462,744)
Net realized gain (loss) from:
Investment transactions ....................................... 46,892,738 35,579,689
Foreign currency transactions ................................. -- --
Change in net unrealized appreciation or (depreciation) on:
Investments ................................................... 11,741,139 68,026,459
Translation of other assets and liabilities in foreign
currencies ................................................... -- --
--------------- ---------------
Net increase (decrease) resulting from operations ............... 57,497,878 102,143,404
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income ...................................... -- --
From net realized gain from investment transactions and
foreign currency transactions ................................. -- (4,983,750)
From return of capital .......................................... -- --
NET CAPITAL SHARE TRANSACTIONS ...................................... 120,342,761 32,742,128
--------------- ---------------
Net increase (decrease) in net assets ............................... 177,840,639 129,901,782
NET ASSETS:
Beginning of period ............................................. 290,373,989 160,472,207
--------------- ---------------
End of period ................................................... $ 468,214,628 $ 290,373,989
=============== ===============
Undistributed net investment income (loss)
at end of period .................................................. $ (1,135,999) $ --
=============== ===============
<CAPTION>
HIGH YIELD FUND
----------------------------------
SIX MONTHS YEAR
ENDED ENDED
JUNE 30, 2000 DECEMBER 31,
(UNAUDITED) 1999
--------------- ---------------
<S> <C> <C>
OPERATIONS:
Net investment income ........................................... $ 2,974,442 $ 5,210,530
Net realized gain (loss) from investment transactions ........... (925,529) (1,090,679)
Change in net unrealized appreciation or (depreciation)
on investments ................................................ (879,357) (2,631,537)
--------------- ---------------
Net increase (decrease) resulting from operations ............... 1,169,556 1,488,314
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income ...................................... (2,974,442) (5,210,530)
From net realized gain from investment transactions ............. -- (53,874)
NET CAPITAL SHARE TRANSACTIONS ...................................... 9,062,329 17,930,084
--------------- ---------------
Net increase (decrease) in net assets ............................... 7,257,443 14,153,994
NET ASSETS:
Beginning of period ............................................... 71,677,827 57,523,833
--------------- ---------------
End of period ..................................................... $ 78,935,270 $ 71,677,827
=============== ===============
<CAPTION>
REAL ESTATE EQUITY FUND
----------------------------------
SIX MONTHS YEAR
ENDED ENDED
JUNE 30, 2000 DECEMBER 31,
(UNAUDITED) 1999
--------------- ---------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) .................................... $ 7,037,972 $ 11,701,442
Net realized gain (loss) from:
Investment transactions ....................................... (486,105) (7,830,003)
Foreign currency transactions ................................. -- --
Change in net unrealized appreciation or (depreciation) on:
Investments ................................................... 30,956,046 (10,932,476)
Translation of other assets and liabilities in foreign
currencies ................................................... -- --
--------------- ---------------
Net increase (decrease) resulting from operations ............... 37,507,913 (7,061,037)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income ...................................... (6,893,654) (10,095,164)
From net realized gain from investment transactions and
foreign currency transactions ................................. --
From return of capital .......................................... -- (1,606,278)
NET CAPITAL SHARE TRANSACTIONS ...................................... 66,445,217 96,305,863
--------------- ---------------
Net increase (decrease) in net assets ............................... 97,059,476 77,543,384
NET ASSETS:
Beginning of period ............................................. 241,715,738 164,172,354
--------------- ---------------
End of period ................................................... $ 338,775,214 $ 241,715,738
=============== ===============
Undistributed net investment income (loss)
at end of period .................................................. $ 144,318 $ --
=============== ===============
<CAPTION>
COLUMBIA DAILY
INCOME COMPANY
----------------------------------
SIX MONTHS YEAR
ENDED ENDED
JUNE 30, 2000 DECEMBER 31,
(UNAUDITED) 1999
--------------- ---------------
<S> <C> <C>
OPERATIONS:
Net investment income ........................................... $ 33,122,337 $ 51,617,530
Net realized gain (loss) from investment transactions ........... -- --
Change in net unrealized appreciation or (depreciation)
on investments ................................................ -- --
--------------- ---------------
Net increase (decrease) resulting from operations ............... 33,122,337 51,617,530
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income ...................................... (33,122,337) (51,617,530)
From net realized gain from investment transactions ............. -- --
NET CAPITAL SHARE TRANSACTIONS ...................................... (40,774,267) 56,148,201
--------------- ---------------
Net increase (decrease) in net assets ............................... (40,774,267) 56,148,201
NET ASSETS:
Beginning of period ............................................... 1,165,289,412 1,109,141,211
--------------- ---------------
End of period ..................................................... $ 1,124,515,145 $ 1,165,289,412
=============== ===============
<CAPTION>
BALANCED FUND
----------------------------------
SIX MONTHS YEAR
ENDED ENDED
JUNE 30, 2000 DECEMBER 31,
(UNAUDITED) 1999
--------------- ---------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) .................................... $ 14,250,722 $ 29,080,146
Net realized gain (loss) from:
Investment transactions ....................................... 45,677,829 58,919,954
Foreign currency transactions ................................. -- --
Change in net unrealized appreciation or (depreciation) on:
Investments ................................................... (4,773,949) 33,437,705
Translation of other assets and liabilities in foreign
currencies ................................................... -- --
--------------- ---------------
Net increase (decrease) resulting from operations ............... 55,154,602 121,437,805
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income ...................................... (14,084,266) (28,986,708)
From net realized gain from investment transactions and
foreign currency transactions ................................. -- (27,016,924)
From return of capital .......................................... -- --
NET CAPITAL SHARE TRANSACTIONS ...................................... 6,469,117 124,908
--------------- ---------------
Net increase (decrease) in net assets ............................... 47,539,453 65,559,081
NET ASSETS:
Beginning of period ............................................. 1,040,939,839 975,380,758
--------------- ---------------
End of period ....................................................... $ 1,088,479,292 $ 1,040,939,839
=============== ===============
Undistributed net investment income (loss)
at end of period .................................................. $ 465,743 $ 299,287
=============== ===============
</TABLE>
See Accompanying Notes to Financial Statements
87
<PAGE>
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
(Unaudited)
-- 1. SIGNIFICANT ACCOUNTING POLICIES --
The Columbia Funds (the "Funds") consist of the following:
Columbia Common Stock Fund, Inc.
Columbia Growth Fund, Inc.
Columbia International Stock Fund, Inc.
Columbia Special Fund, Inc.
Columbia Small Cap Fund, Inc.
Columbia Real Estate Equity Fund, Inc.
Columbia Balanced Fund, Inc.
Columbia U.S. Government Securities Fund, Inc.
Columbia Fixed Income Securities Fund, Inc.
Columbia National Municipal Bond Fund, Inc.
Columbia Oregon Municipal Bond Fund, Inc.
Columbia High Yield Fund, Inc.
Columbia Daily Income Company
All Funds are open-end investment companies registered under the Investment
Company Act of 1940, as amended, and are diversified except the Oregon Municipal
Bond Fund, which is non-diversified.
Following is a summary of significant accounting policies, in conformity with
generally accepted accounting principles, which are consistently followed by
each Fund in the preparation of its financial statements.
INVESTMENT VALUATION. Equity securities are valued based on the last sales
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. Fixed income securities are valued
based on market value as quoted by dealers who are market makers in these
securities, by independent pricing services, or by the Funds' investment adviser
using a methodology approved by the Board of Directors. Market values for fixed
income securities, except for municipal securities, are based on the average of
bid and ask prices, or by reference to other securities with comparable ratings,
interest rates and maturities. Market value for municipal securities is based on
bid prices. Investment securities with less than 60 days to maturity when
purchased and all securities held by Columbia Daily Income Company are valued at
amortized cost, which approximates market value. Securities for which market
quotations are not readily available are valued at fair market value as
determined in good faith under procedures established by and under the general
supervision of the Board of Directors of each Fund.
REPURCHASE AGREEMENTS. The Funds may engage in repurchase agreement
transactions. The Funds, through their custodians, receive delivery of
underlying securities collateralizing 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.
INVESTMENT TRANSACTIONS. Investment transactions are accounted for as of the
date the investments are purchased or sold. Net realized gains and losses are
determined on the identified cost basis, which is also used for federal income
tax purposes. Securities purchased on a when-issued or forward-delivery basis
may be settled a month or more after trade date; interest income is not accrued
until settlement date. Each Fund segregates liquid assets with a current value
at least equal to the amount of its when-issued purchase commitments until
settlement date.
INVESTMENT INCOME AND EXPENSES. Dividend income less foreign taxes withheld (if
any) is recorded on the ex-dividend date. Certain dividends from foreign
securities are recorded as soon as the fund is informed of the dividend if such
information is obtained subsequent to the ex-dividend date. Interest income is
recorded on the accrual basis and includes amortization of premiums or accretion
of discounts. Expenses are recorded on the accrual basis and each Fund bears
expenses incurred specifically on its behalf as well as a portion of general
expenses incurred on behalf of all Funds. Expenses for "fees paid indirectly"
reflect earnings credits on uninvested cash balances used to reduce the Funds'
custodian charges.
88
<PAGE>
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
(Unaudited)
-- 1. SIGNIFICANT ACCOUNTING POLICIES, -- CONTINUED
FORWARD CURRENCY EXCHANGE CONTRACTS. Certain Funds may enter into forward
currency contracts in connection with planned purchases or sales of securities
or to hedge the U.S. dollar value of the portfolio securities denominated in a
foreign currency. Contracts are valued at the prevailing forward exchange rate
of the underlying currencies. The gain or loss arising from the difference
between the original contract price and the closing price of such contract is
included in the net realized gains or losses from foreign currency transactions.
Fluctuations in the value of forward currency contracts are recorded for
financial reporting purposes as unrealized gains or losses. The Fund could be
exposed to risks if counterparties to the forward 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 corresponding change (resulting from a change in exchange
rates) in value of the securities denominated in that currency. During the six
months ended June 30, 2000, the Funds did not enter into any such forward
currency contracts.
FOREIGN CURRENCY TRANSLATIONS. The books and records of the International Stock
Fund are maintained in U.S. dollars. Foreign currencies, investments and other
assets and liabilities of the Funds are translated into U.S. dollars at the
daily rates of exchange on the valuation date. Purchases and sales of investment
securities, dividend and interest income and certain expenses are translated at
the rates of exchange prevailing on the respective dates of such transactions.
The International Stock Fund 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 on investments held. Such
fluctuations are included with the net realized and unrealized gain or loss from
investments.
Reported net realized foreign currency gains or losses arise from the 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 the
Fund's books and the U.S. dollar equivalents of the amounts actually received or
paid. Net unrealized foreign exchange gains or losses arise from changes in the
value of assets and liabilities, other than investments in securities, resulting
from changes in the exchange rate.
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 income and expenses during the reporting
period. Actual results could differ from those estimates.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends from net investment
income of the Common Stock, Real Estate Equity and Balanced Funds are declared
and paid quarterly. Dividends from net investment income of the Growth,
International Stock, Special, and Small Cap Funds are declared and paid
annually. Dividends from net investment income of the U.S. Government
Securities, Fixed Income Securities, National Municipal Bond, Oregon Municipal
Bond, and High Yield Funds are declared daily and paid monthly. Dividends from
net investment income of the Columbia Daily Income Company are declared and paid
daily. Distributions from any net realized gains are generally declared and paid
annually. Distributions to shareholders are recorded on the ex-dividend date. A
portion of the dividends paid to shareholders in the Real Estate Equity Fund
include return of capital received from Real Estate Investment Trust securities
held in the Fund's portfolio. Additional distributions of net investment income
and capital gains for each Fund may be made at the discretion of the Board of
Directors in accordance with federal income tax regulations.
89
<PAGE>
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
(Unaudited)
-- 1. SIGNIFICANT ACCOUNTING POLICIES, -- CONTINUED
FEDERAL INCOME TAXES. Each Fund intends to comply with the requirements of the
Internal Revenue Code applicable to regulated investment companies by
distributing substantially all taxable net investment income and net realized
gains to its shareholders in a manner that results in no tax to the Fund. Thus,
no federal income or excise tax provision is required.
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, passive
foreign investment companies, post-October losses, and non-taxable dividends.
As of December 31, 1999, the Real Estate Equity, U.S. Government Securities,
Fixed Income Securities, National Municipal Bond, and High Yield Funds had
$4,833,568, $7,041, $6,446,288, $4,238 and $1,036,178, respectively, in capital
loss carryovers available to offset future capital gains distributions. These
capital loss carryovers expire in the year 2007. Also, the Real Estate Equity,
U.S. Government Securities, Fixed Income Securities, Oregon Municipal Bond, and
High Yield Funds had $2,270,349, $168,923, $2,680,210, $62,999, and $49,600,
respectively, in post-October losses that were deferred to January 1, 2000.
FOREIGN CAPITAL GAINS TAXES. Realized gains in certain countries may be subject
to foreign taxes at the Fund level, at rates ranging from approximately 10% to
30%. The Funds provide for such foreign taxes on net realized and unrealized
gains at the appropriate rate for each jurisdiction.
OTHER. The High Yield Fund 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. As of June 30, 2000, 12% of the Fund's debt securities were
rated Baa, 46% were rated Ba, 41% were rated B, and 1% were rated C, as rated by
Moody's Investors Service, Inc.
90
<PAGE>
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
(Unaudited)
-- 2. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES --
The amounts of fees and expenses described below are shown on each Fund's
statement of operations.
Columbia Funds Management Company (CFMC) manages each Fund, and Columbia Trust
Company (CTC) is the transfer and shareholder servicing agent. CFMC and CTC are
indirect, wholly owned subsidiaries of FleetBoston Financial Corporation, a
publicly owned multi-bank holding company registered under the Bank Holding
Company Act of 1956.
Investment management fees were paid by each Fund to CFMC. The fees are based on
the following annual rates of average daily net assets:
<TABLE>
<CAPTION>
FEES ON FEES ON FEES ON FEES ON
NET ASSETS NET ASSETS NET ASSETS NET ASSETS
FIRST NEXT NEXT EXCEEDING
$200 MILLION $300 MILLION $500 MILLION $1 BILLION
------------ ------------ ------------ -----------
<S> <C> <C> <C> <C>
Common Stock Fund ........................... 0.60 of 1% 0.60 of 1% 0.60 of 1% 0.60 of 1%
Growth Fund ................................. 0.75 of 1% 0.625 of 1% 0.50 of 1% 0.50 of 1%
International Stock Fund .................... 1.00 of 1% 1.00 of 1% 1.00 of 1% 1.00 of 1%
Special Fund ................................ 1.00 of 1% 1.00 of 1% 0.75 of 1% 0.75 of 1%
Small Cap Fund .............................. 1.00 of 1% 1.00 of 1% 1.00 of 1% 1.00 of 1%
Real Estate Equity Fund ..................... 0.75 of 1% 0.75 of 1% 0.75 of 1% 0.75 of 1%
Balanced Fund ............................... 0.50 of 1% 0.50 of 1% 0.50 of 1% 0.50 of 1%
U.S. Government Securities Fund ............. 0.50 of 1% 0.50 of 1% 0.50 of 1% 0.50 of 1%
Fixed Income Securities Fund ................ 0.50 of 1% 0.50 of 1% 0.50 of 1% 0.50 of 1%
National Municipal Bond Fund ................ 0.50 of 1% 0.50 of 1% 0.50 of 1% 0.50 of 1%
Oregon Municipal Bond Fund .................. 0.50 of 1% 0.50 of 1% 0.50 of 1% 0.50 of 1%
High Yield Fund ............................. 0.60 of 1% 0.60 of 1% 0.60 of 1% 0.60 of 1%
Columbia Daily Income Company ............... 0.50 of 1% 0.50 of 1% 0.45 of 1% 0.40 of 1%
</TABLE>
Directors' fees and expenses were paid directly by each Fund to directors having
no affiliation with the Funds other than in their capacity as directors. Other
officers and directors received no compensation from the Funds.
Transfer agent fees were paid by each Fund to CTC for services incidental to
issuance and transfer of shares, maintaining shareholder lists, and issuing and
mailing distributions and reports. The Funds also reimburse CTC for certain
direct shareholder servicing and accounting costs.
For the year ending December 31, 2000, CFMC contractually agreed to reimburse
expenses in excess of 0.65% of 1% for the National Municipal Bond Fund.
91
<PAGE>
NOTEST OF INANCIAL STATEMENTS
--------------------------------------------------------------------------------
(Unaudited)
-- 3. INVESTMENT TRANSACTIONS --
Aggregate purchases, sales and maturities, net realized gains (losses) and
unrealized appreciation (depreciation) of investments, excluding short-term
investments, as of and for the six months ended June 30, 2000, were as follows:
<TABLE>
<CAPTION>
COMMON INTERNATIONAL
STOCK GROWTH STOCK SPECIAL
FUND FUND FUND FUND
--------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
PURCHASES:
Investment securities other
than U.S. Government obligations ............. $ 475,740,097 $ 1,103,990,836 $ 122,659,692 $ 855,218,512
U.S. Government obligations ................ -- -- -- --
--------------- --------------- --------------- ---------------
Total purchases .......................... $ 475,740,097 $ 1,103,990,836 $ 122,659,692 $ 855,218,512
=============== =============== =============== ===============
SALES AND MATURITIES:
Investment securities other
than U.S. Government obligations ............. $ 475,084,635 $ 1,104,108,363 $ 99,996,063 $ 838,428,663
U.S. Government obligations ................ -- -- -- --
--------------- --------------- --------------- ---------------
Total sales and maturities ............... $ 475,084,635 $ 1,104,108,363 $ 99,996,063 $ 838,428,663
=============== =============== =============== ===============
NET REALIZED GAIN (LOSS):
Investment securities other
than U.S. Government obligations ............. $ 81,024,205 $ 160,547,998 $ 24,838,297 $ 170,389,752
U.S. Government obligations ................ -- -- -- --
--------------- --------------- --------------- ---------------
Total net realized gain (loss) ........... $ 81,024,205 $ 160,547,998 $ 24,838,297 $ 170,389,752
=============== =============== =============== ===============
UNREALIZED APPRECIATION (DEPRECIATION)
FOR FEDERAL INCOME TAX PURPOSES:
Appreciation ................................. $ 335,090,214 $ 874,148,203 $ 43,213,814 $ 380,627,836
Depreciation ............................... (22,601,047) (30,768,637) (10,839,353) (23,238,473)
--------------- --------------- --------------- ---------------
Net unrealized appreciation (depreciation) $ 312,489,167 $ 843,379,566 $ 32,374,461 $ 357,389,363
=============== =============== =============== ===============
<CAPTION>
SMALL CAP
FUND
---------------
<S> <C>
PURCHASES:
Investment securities other
than U.S. Government obligations ............. $ 348,594,091
U.S. Government obligations ................ --
---------------
Total purchases .......................... $ 348,594,091
===============
SALES AND MATURITIES:
Investment securities other
than U.S. Government obligations ............. $ 247,260,279
U.S. Government obligations ................ --
---------------
Total sales and maturities ............... $ 247,260,279
===============
NET REALIZED GAIN (LOSS):
Investment securities other
than U.S. Government obligations ............. $ 46,892,738
U.S. Government obligations ................ --
---------------
Total net realized gain (loss) ........... $ 46,892,738
===============
UNREALIZED APPRECIATION (DEPRECIATION)
FOR FEDERAL INCOME TAX PURPOSES:
Appreciation ................................. $ 118,298,094
Depreciation ............................... (14,063,966)
---------------
Net unrealized appreciation (depreciation) $ 104,234,128
===============
</TABLE>
92
<PAGE>
<TABLE>
<CAPTION>
U.S. FIXED
REAL ESTATE GOVERNMENT INCOME
EQUITY BALANCED SECURITIES SECURITIES
FUND FUND FUND FUND
--------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
PURCHASES:
Investment securities other
than U.S. Government obligations ............. $ 64,623,238 $ 456,851,963 $ -- $ 108,628,209
U.S. Government obligations ................ -- 149,633,017 9,645,383 123,885,495
--------------- --------------- --------------- ---------------
Total purchases .......................... $ 64,623,238 $ 606,484,980 $ 9,645,383 $ 232,513,704
=============== =============== =============== ===============
SALES AND MATURITIES:
Investment securities other
than U.S. Government obligations ............. $ 8,093,855 $ 462,925,943 $ -- $ 126,928,900
U.S. Government obligations ................ -- 159,908,589 17,367,867 125,282,758
--------------- --------------- --------------- ---------------
Total sales and maturities ............... $ 8,093,855 $ 622,834,532 $ 17,367,867 $ 252,211,658
=============== =============== =============== ===============
NET REALIZED GAIN (LOSS):
Investment securities other
than U.S. Government obligations ............. $ (486,105) $ 48,248,387 $ -- $ (3,772,807)
U.S. Government obligations ................ -- (2,570,558) (136,254) (2,641,502)
--------------- --------------- --------------- ---------------
Total net realized gain (loss) ........... $ (486,105) $ 45,677,829 $ (136,254) $ (6,414,309)
=============== =============== =============== ===============
UNREALIZED APPRECIATION (DEPRECIATION)
FOR FEDERAL INCOME TAX PURPOSES:
Appreciation ................................. $ 31,743,876 $ 217,694,134 $ 44,283 $ 2,051,848
Depreciation ............................... (10,984,126) (27,081,699) (277,536) (9,071,654)
--------------- --------------- --------------- ---------------
Net unrealized appreciation (depreciation) $ 20,759,750 $ 190,612,435 $ (233,253) $ (7,019,806)
=============== =============== =============== ===============
<CAPTION>
NATIONAL OREGON
MUNICIPAL MUNICIPAL
BOND BOND HIGH YIELD
FUND FUND FUND
--------------- --------------- ---------------
<S> <C> <C> <C>
PURCHASES:
Investment securities other
than U.S. Government obligations ............. $ 2,008,777 $ 45,784,404 $ 18,720,291
U.S. Government obligations ................ -- -- --
--------------- --------------- ---------------
Total purchases .......................... $ 2,008,777 $ 45,784,404 $ 18,720,291
=============== =============== ===============
SALES AND MATURITIES:
Investment securities other
than U.S. Government obligations ............. $ 1,291,845 $ 48,293,944 $ 13,392,810
U.S. Government obligations ................ -- -- --
--------------- --------------- ---------------
Total sales and maturities ............... $ 1,291,845 $ 48,293,944 $ 13,392,810
=============== =============== ===============
NET REALIZED GAIN (LOSS):
Investment securities other
than U.S. Government obligations ............. $ (44,834) $ (48,277) $ (925,529)
U.S. Government obligations ................ -- -- --
--------------- --------------- ---------------
Total net realized gain (loss) ........... $ (44,834) $ (48,277) $ (925,529)
=============== =============== ===============
UNREALIZED APPRECIATION (DEPRECIATION)
FOR FEDERAL INCOME TAX PURPOSES:
Appreciation ................................. $ -- $ 5,088,614 $ 202,280
Depreciation ............................... (200,438) (10,234,383) (3,556,159)
--------------- --------------- ---------------
Net unrealized appreciation (depreciation) $ (200,438) $ (5,145,769) $ (3,353,879)
=============== =============== ===============
</TABLE>
93
<PAGE>
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
(Unaudited)
-- 4. CAPITAL STOCK ACTIVITY--
<TABLE>
<CAPTION>
COMMON STOCK FUND GROWTH FUND INTERNATIONAL STOCK FUND
---------------------------- ---------------------------- ------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
JUNE 30, 2000 DECEMBER 31, JUNE 30, 2000 DECEMBER 31, JUNE 30, 2000 DECEMBER 31,
(UNAUDITED) 1999 (UNAUDITED) 1999 (UNAUDITED) 1999
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
SHARES:
Shares sold ................. 5,698,295 11,517,632 5,727,868 9,878,594 4,895,191 6,568,847
Shares reinvested for
dividends and distributions -- 1,925,063 -- 3,704,725 -- 672,171
------------- ------------- ------------- ------------- ------------- -------------
5,698,295 13,442,695 5,727,868 13,583,319 4,895,191 7,241,018
Shares redeemed ............. (6,398,646) (12,902,897) (6,358,161) (10,645,707) (4,133,347) (5,437,082)
------------- ------------- ------------- ------------- ------------- -------------
Net increase (decrease) ..... (700,351) 539,798 (630,293) 2,937,612 761,844 1,803,936
============= ============= ============= ============= ============= =============
AMOUNTS:
Sales ....................... $ 169,244,663 $ 303,390,022 $ 291,537,356 $ 458,631,367 $ 105,994,397 $ 115,830,456
Reinvestment of dividends
and distributions ......... -- 55,517,942 -- 181,198,091 -- 15,332,212
------------- ------------- ------------- ------------- ------------- -------------
169,244,663 358,907,964 291,537,356 639,829,458 105,994,397 131,162,668
Less redemptions ............ (188,554,733) (342,201,619) (320,291,823) (494,532,804) (88,498,565) (94,630,394)
------------- ------------- ------------- ------------- ------------- -------------
Net increase (decrease) ..... $ (19,310,070) $ 16,706,345 $ (28,754,467) $ 145,296,654 $ 17,495,832 $ 36,532,274
============= ============= ============= ============= ============= =============
Captial stock authorized .... 100,000,000 100,000,000 100,000,000
Par value ................... no par $0.01 no par
<CAPTION>
U.S. GOVERNMENT FIXED INCOME NATIONAL MUNICIPAL
SECURITIES FUND SECURITIES FUND BOND FUND
-------------------------------- -------------------------------- -----------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS FEBRUARY 10
ENDED ENDED ENDED ENDED ENDED THROUGH
JUNE 30, 2000 DECEMBER 31, JUNE 30, 2000 DECEMBER 31, JUNE 30, 2000 DECEMBER 31,
(UNAUDITED) 1999 (UNAUDITED) 1999 (UNAUDITED) 1999
--------------- -------------- ------------- --------------- ------------- ---------------
<S> <C> <C> <C> <C> <C> <C>
SHARES:
Shares sold ..................... 827,654 1,622,111 4,771,705 11,566,401 206,302 1,167,112
Shares reinvested for
dividends and distributions 96,948 179,825 876,946 1,654,141 24,458 22,266
--------------- -------------- ------------- --------------- ------------- ---------------
924,602 1,801,936 5,648,651 13,220,542 230,760 1,189,378
Shares redeemed ............... (1,227,416) (1,994,828) (6,961,244) (12,763,958) (179,864) (97,174)
--------------- -------------- ------------- --------------- ------------- ---------------
Net increase (decrease) ....... (302,814) (192,892) (1,312,593) 456,584 50,896 1,092,204
=============== ============== ============= =============== ============= ===============
AMOUNTS:
Sales ......................... $ 6,771,930 13,439,970 $ 59,016,577 $ 149,896,177 $ 1,912,921 $ 11,243,302
Reinvestment of dividends
and distributions ........... 792,711 1,487,740 10,839,505 21,208,934 227,362 210,997
--------------- -------------- ------------- --------------- ------------- ---------------
7,564,641 14,927,710 69,856,082 171,105,111 2,140,283 11,454,299
Less redemptions .............. (10,041,392) (16,538,673) (86,103,316) (163,879,384) (1,667,038) (914,496)
--------------- -------------- ------------- --------------- ------------- ---------------
Net increase (decrease) ....... $ (2,476,751) (1,610,963) $ (16,247,234) $ 7,225,727 $ 473,245 $ 10,539,803
=============== ============== ============= =============== ============= ===============
Captial stock authorized ...... 100,000,000 200,000,000 100,000,000
Par value ..................... $ 0.01 $ 0.01 $ 0.01
</TABLE>
94
<PAGE>
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
(Unaudited)
-- 4. CAPITAL STOCK ACTIVITY--
<TABLE>
<CAPTION>
SPECIAL FUND SMALL CAP FUND REAL ESTATE EQUITY FUND
---------------------------- ------------------------------ ------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
JUNE 30, 2000 DECEMBER 31, JUNE 30, 2000 DECEMBER 31, JUNE 30, 2000 DECEMBER 31,
(UNAUDITED) 1999 (UNAUDITED) 1999 (UNAUDITED) 1999
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
SHARES:
Shares sold ................. 7,186,912 8,091,686 9,619,399 9,154,142 9,706,721 14,484,357
Shares reinvested for
dividends and distributions -- 2,110,467 -- 179,125 426,552 741,606
------------- ------------- ------------- ------------- ------------- -------------
7,186,912 10,202,153 9,619,399 9,333,267 10,133,273 15,225,963
Shares redeemed ............. (6,306,085) (20,554,037) (5,718,120) (7,888,604) (5,887,980) (9,054,829)
------------- ------------- ------------- ------------- ------------- -------------
Net increase (decrease) ..... 880,827 (10,351,884) 3,901,279 1,444,663 4,245,293 6,171,134
============= ============= ============= ============= ============= =============
AMOUNTS:
Sales ....................... $ 251,211,807 $ 189,699,087 $ 296,430,900 $ 173,956,372 $ 150,242,830 $ 223,469,596
Reinvestment of dividends
and distributions ......... -- 63,166,278 -- 4,882,952 6,658,276 11,170,622
------------- ------------- ------------- ------------- ------------- -------------
251,211,807 252,865,365 296,430,900 178,839,324 156,901,106 234,640,218
Less redemptions ............ (219,367,745) (176,088,139) (90,455,889) (138,334,355) (183,187,953) (479,171,475)
------------- ------------- ------------- ------------- ------------- -------------
Net increase (decrease) ..... $ 31,844,062 $(222,112,863) $ 120,342,761 $ 32,742,128 $ 66,445,217 $ 96,305,863
============= ============= ============= ============= ============= =============
Captial stock authorized .... 100,000,000 100,000,000 100,000,000
Par value ................... $0.01 no par no par
<CAPTION>
OREGON MUNICIPAL
BALANCED FUND BOND FUND
------------------------------ ---------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
JUNE 30, 2000 DECEMBER 31, JUNE 30, 2000 DECEMBER 31,
(UNAUDITED) 1999 (UNAUDITED) 1999
------------- ------------- -------------- ---------------
<S> <C> <C> <C> <C>
SHARES:
Shares sold ................. 6,962,257 17,873,300 3,792,002 7,638,760
Shares reinvested for
dividends and distributions 533,392 2,275,603 676,901 1,429,175
------------- ------------- -------------- ---------------
7,495,649 20,148,903 4,468,903 9,067,935
Shares redeemed ............. (7,300,082) (20,132,726 (4,648,002) (10,762,622)
------------- ------------- -------------- ---------------
Net increase (decrease) ..... 195,567 16,177 (179,099) (1,694,687)
============= ============= ============== ===============
AMOUNTS:
Sales ....................... $ 175,795,283 $ 423,883,086 43,757,491 $ 92,826,600
Reinvestment of dividends
and distributions ......... 13,861,787 55,413,297 7,818,681 17,180,278
------------- ------------- -------------- ---------------
189,657,070 479,296,383 51,576,172 110,006,878
Less redemptions ............ (53,632,304) (129,645,952)
------------- ------------- -------------- ---------------
Net increase (decrease) ..... $ 6,469,117 $ 124,908 (2,056,132) $ (19,639,074)
============= ============= ============== ===============
Captial stock authorized .... 100,000,000 100,000,000
Par value ................... no par no par
<CAPTION>
HIGH YIELD COLUMBIA DAILY
FUND INCOME COMPANY
---------------------------------- ----------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
JUNE 30, 2000 DECEMBER 31, JUNE 30, 2000 DECEMBER 31,
(UNAUDITED) 1999 (UNAUDITED) 1999
--------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
SHARES:
Shares sold ................. 3,272,070 5,482,451 1,046,648,106 1,662,164,367
Shares reinvested for
dividends and distributions 290,021 481,404 33,108,884 51,589,441
--------------- --------------- --------------- ---------------
3,562,091 5,963,855 1,079,756,990 1,713,753,808
Shares redeemed ............. (2,563,729) (4,117,581) (1,657,605,607)
--------------- --------------- --------------- ---------------
Net increase (decrease) ..... 998,362 1,846,274 (40,774,267) 56,148,201
=============== =============== =============== ===============
AMOUNTS:
Sales ....................... $ 29,834,224 $ 52,700,054 $ 1,046,648,106 $ 1,662,164,367
Reinvestment of dividends
and distributions ......... 2,631,262 4,589,655 33,108,884 51,589,441
--------------- --------------- --------------- ---------------
32,465,486 57,289,709 1,079,756,990 1,713,753,808
Less redemptions ............ (23,403,157) (39,359,625) (1,657,605,607)
--------------- --------------- --------------- ---------------
Net increase (decrease) ..... $ 9,062,329 $ 17,930,084 $ (40,774,267) $ 56,148,201
=============== =============== =============== ===============
Captial stock authorized .... 100,000,000 2,000,000,000
Par value ................... no par $ 0.001
</TABLE>
95
<PAGE>
NOTES
--------------------------------------------------------------------------------
<PAGE>
MUTUAL FUND SHARES ARE NOT INSURED BY THE FDIC OR ANY OTHER GOVERNMENTAL ENTITY;
ARE NOT DEPOSITS OR OTHER OBLIGATIONS OF, OR GUARANTEED BY, ANY BANK; AND
INVOLVE RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL.
<PAGE>
[LOGO]
COLUMBIA FUNDS
-- 1301 S.W. FIFTH AVENUE, PORTLAND, OREGON 97201 --
-- DIRECTORS --
--------------------------------------------------------------------------------
JAMES C. GEORGE
J. JERRY INSKEEP, JR.
PATRICK J. SIMPSON
RICHARD L. WOOLWORTH
-- INVESTMENT ADVISOR --
--------------------------------------------------------------------------------
COLUMBIA FUNDS MANAGEMENT COMPANY
1300 S.W. SIXTH AVENUE
PORTLAND, OREGON 97201
-- LEGAL COUNSEL --
--------------------------------------------------------------------------------
STOEL RIVES LLP
900 S.W. FIFTH AVENUE, SUITE 2300
PORTLAND, OREGON 97204-1268
-- 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 PROVIDENT DISTRIBUTORS, INC.
--------------------------------------------------------------------------------
