<PAGE>
[GRAPHIC LOGO]
COLONIAL
MUNICIPAL
MONEY MARKET
FUND
----------------------
SEMIANNUAL REPORT
DECEMBER 31, 1995
----------------------
<PAGE>
- --------------------------------------------------------------------------------
COLONIAL MUNICIPAL MONEY MARKET FUND HIGHLIGHTS
JULY 1, 1995-DECEMBER 31, 1995
INVESTMENT OBJECTIVE: Colonial Municipal Money Market Fund seeks to provide
investors with steady income, ready liquidity, and maximum stability of
principal.
STRATEGY: The Fund pursues its objective by investing primarily in variable
rate demand notes, commercial paper and other short-term tax-exempt securities.
THE FUND IS DESIGNED TO OFFER:
- - Steady tax-exempt income
- - Easy access to your money
- - Maximum stability of principal
PORTFOLIO MANAGER COMMENTARY: "Our fourth quarter strategy was to lengthen the
Fund's average maturity to lock in higher interest rates. We have also
structured the portfolio to make minimal reinvestments in January, when there
has historically been a shortage of new issues and finding favorable rates can
be difficult."
<TABLE>
<CAPTION>
CLASS A CLASS B
<S> <C> <C>
Inception date 11/25/86 11/9/92
Distributions declared per share
for six months ended 12/31/95 $0.015 $0.011%
Seven-day yield on 12/31/95 3.967% 2.986%
Seven-day tax-equivalent yield on 12/31/95* 6.567% 4.944%
30-day yield on 12/31/95 3.385% 2.394%
<FN>
* Taxable-equivalent yield is based on the 39.6% federal income tax rate.
</TABLE>
<TABLE>
<CAPTION>
PORTFOLIO BREAKDOWN PORTFOLIO MATURITY
- ---------------------------------- ------------------------------
<S> <C> <C> <C>
Variable Rate Notes .........67.4% 0-29 Days ...............63.3%
Other Tax Exempts ...........14.4% 30-59 Days ..............12.1%
Commercial Paper ............11.2% 60-89 Days ...............2.6%
Put Bonds ....................3.2% 90-179 Days ..............2.6%
Tax Anticipation Notes .......3.2% 180-379 Days ............19.4%
Tax-Exempt Bonds .............0.6%
</TABLE>
Bacause the Fund is actively managed, portfolio breakdowns and maturity
weightings will change.
- --------------------------------------------------------------------------------
2
<PAGE>
- --------------------------------------------------------------------------------
PRESIDENT'S MESSAGE
TO FUND SHAREHOLDERS
As your Fund approaches the middle of its fiscal
year, it is a good time to examine some facts that
contributed to memorable performance for most
mutual fund investors.
[PHOTO]
In general, equity investors were rewarded with
unexpectedly strong corporate earnings that sent
the stock market to new highs in 1995. This year
is likely to be a good year as well, although a more
modest one.
Conditions in the fixed-income and municipal markets were also favorable.
Those investors who stayed the course through 1994's difficult environment
were amply rewarded.
Falling interest rates and controlled inflation helped the economy to grow at a
comfortable pace -- a positive environment for financial markets. We expect
this rate of growth and low inflation to continue into 1996. It is likely that
further reductions in interest rates will take place in the first half of this
year as the Federal Reserve keeps a watchful eye on inflation.
We do expect some sluggishness in the economy in the first half of the year,
with some pick up in the second half of 1996. This will reflect several factors.
Housing should benefit from lower interest rates and excess inventories of
consumer and manufactured goods should be liquidated. Secondly, the pace of
exports is likely to improve due to anticipated economic growth in Europe and
Japan.
In foreign markets, we continue to find that the Pacific Rim offers the best
combination of value and continued good earnings. In general, foreign markets
lagged the U.S. market last year. In 1996, we could see that gap narrow.
This year, investors will pay close attention to the 1996 Presidential election.
Usually, during an election year, incumbents will try to stimulate economic
growth, although this familiar pattern may be altered by the current budget
controversy.
Please remember that bull markets are a normal part of investing, but so are
bear markets. By leaving your money invested over the long term and following at
a regular investment plan, you can avoid the difficulties of trying to predict
short-term market movements.
With this update, I encourage you to read the following report on your Fund. We
appreciate the opportunity to help you meet your investment goals.
Respectfully,
/s/ John A. McNeice, Jr.
------------------------------
John A. McNeice, Jr.
President
February 9, 1996
Because market conditions change frequently, there can be no assurance that the
trends described here will continue, come to pass, or affect the performance of
the Fund.
- --------------------------------------------------------------------------------
3
<PAGE>
<TABLE>
STEIN ROE & FARNHAM MUNICIPAL MONEY MARKET
PORTFOLIO
INVESTMENT PORTFOLIO
DECEMBER 31, 1995 (UNAUDITED, IN THOUSANDS)
<CAPTION>
MUNICIPAL SECURITIES - (100.5%) PAR VALUE
- ----------------------------------------------------------------------------
<S> <C> <C>
ALABAMA (3.7%)
* Alabama I.D.A. Solid Waste Disposal Revenues
(Pine City Fiber Company L.O.C. Barclays
Bank PLC) V.R.D.B. 5.250% $5,750 $5,750
- ----------------------------------------------------------------------------
ARIZONA (0.8%)
* Maricopa County I.D.A. Series D
(L.O.C. Bank One, Arizona) V.R.D.B. 5.300% 1,200 1,200
- ----------------------------------------------------------------------------
ARKANSAS (3.2%)
* Clark County Solid Waste Disposal Revenue
(Reynolds Metals Co. L.O.C. Trust Company Bank)
V.R.D.B. 5.200% 5,000 5,000
- ----------------------------------------------------------------------------
CALIFORNIA (3.1%)
Los Angeles School District Tax & Revenue
T.R.A.N. 4.500% 7/03/96 Series 95-96 2,750 2,761
San Diego T.A.N. Series A
4.750% 7/03/96 2,000 2,008
------
4,769
- ----------------------------------------------------------------------------
COLORADO (0.5%)
Colorado Health Facilities Authority Revenue
MBInsured) V.R.D.B. 5.000% 400 400
* Colorado Student Obligation Bond Authority
Student Loan Revenue (L.O.C. Student Loan
Marketing Association) V.R.D.B. 5.200% 400 400
------
800
- ----------------------------------------------------------------------------
DISTRICT OF COLUMBIA (2.0%)
District of Columbia Revenue Series 1985
(American University L.O.C. National
Westminister Bank) V.R.D.B. 5.200% 3,100 3,100
- ----------------------------------------------------------------------------
FLORIDA (5.2%)
Putnam County Development Authority P.C.R.
Series 1984 S (Seminole Electric Cooperative,
Inc. gtd. by National Rural Utilities Cooperative
Finance Corp.) V.R.D.B. 4.650% 4,100 4,100
St. Lucie County P.C.R. Series 1993 (Florida
Power and Light):
3.500% Mandatory Put 3/07/96 2,000 2,000
3.750% Mandatory Put 2/14/96 2,000 2,000
------
8,100
</TABLE>
4
<PAGE>
<TABLE>
Investment Portfolio/December 31, 1995
- ----------------------------------------------------------------------------
<S> <C> <C>
GEORGIA (2.0%)
* Development Authority of Gwinnett County I.D.R.
(Price Companies, Inc. L.O.C. NationsBank)
V.R.D.B. 3.950% $3,000 $ 3,000
Hapeville Development Authority I.D.R. (Hapeville
Hotel Ltd. L.O.C. Swiss Bank Corp.)
V.R.D.B 6.000% 100 100
-------
3,100
- ----------------------------------------------------------------------------
ILLINOIS (6.8%)
* Illinois Development Finance Authority
Revenue Refunding (L.O.C. Swiss Bank
Corporation) V.R.D.B.:
5.250% (Brookdale) 1,000 1,000
5.200% (River Oaks) 865 865
* Illinois Development Finance Authority
Sewage Facilities Revenue (Nutrasweet Co.
Project gtd. by Monsanto Co.) V.R.D.B. 5.300% 3,200 3,200
Illinois Health Facilities Authority Revenue:
5.550% V.R.D.B. (Palos Community Hospital
L.O.C. ABN Amro) 300 300
3.900% Optional Put 2/8/96 (University of
Chicago Hospital) 3,500 3,500
5.600% V.R.D.B. (L.O.C. Bank One Indianapolis) 570 570
* Southwestern Development Authority
Solid Waste Disposal Revenue (Shell Oil Co.)
6.150% V.R.D.B. 1,000 1,000
-------
10,435
- ----------------------------------------------------------------------------
INDIANA (8.5%)
Fort Wayne Hospital Authority Revenue
(Parkview Memorial Hospital L.O.C. Fuji
Bank, Ltd.) V.R.D.B.:
5.600% Series B 3,000 3,000
5.600% Series C 2,300 2,300
* Franklin Economic Development Revenue
Refunding (L.O.C. Federal Home Loan Bank,
Indianapolis) V.R.D.B. 5.300% 2,965 2,965
Gary Enviromental Improvement Revenue (U.S.
Steel L.O.C. Bank of Nova Scotia)
V.R.D.B. 4.250% 500 500
* Halifax County Industrial Facilities
(Westmoreland L.O.C. Credit Suisse)
V.R.D.B. 6.100% 300 300
* LaPorte County Economic Development Revenue
(Woodland Project L.O.C. Federal Home Loan
Bank, Indianapolis) V.R.D.B. 5.300% 2,000 2,000
5
</TABLE>
<PAGE>
<TABLE>
Investment Portfolio/December 31, 1995
<CAPTION>
- ----------------------------------------------------------------------------
MUNICIPAL SECURITIES - CONT. PAR VALUE
- ----------------------------------------------------------------------------
<S> <C> <C>
INDIANA -CONT.
Petersburg P.C.R. Refunding Revenue Series
1995 B (Indianapolis Power & Light
(AMBAC Insured) V.R.D.B. 5.000% $2,000 $ 2,000
-------
13,065
- ----------------------------------------------------------------------------
IOWA (1.3%)
Iowa School Corporations Warrant Certificates
(Capital Guaranty Insured) Series 1995-96
Series A 4.750% 6/28/96 2,000 2,009
- ----------------------------------------------------------------------------
KENTUCKY (2.8%)
* Covington I.D.R. Series 1991 (White Castle
Distributing L.O.C. Bank One, Columbus)
V.R.D.B. 5.350% 4,255 4,255
- ----------------------------------------------------------------------------
LOUISIANA (1.7%)
* Lake Charles Harbor & Terminal District P.C.R.
(E.I. Dupont gtd by Conoco Inc.) V.R.D.B. 6.150% 700 700
Lousiana Recovery District Sales Tax Revenue
(MBIA Insured) 7.625% 7/01/96 1,000 1,019
* Parish of St. Charles P.C.R. (Shell Oil Co.)
V.R.D.B. 6.150% 900 900
-------
2,619
- ----------------------------------------------------------------------------
MARYLAND (1.9%)
* Ann Arundel County E.D.R. (Baltimore
Gas and Electric Company) 3.900%
Mandatory Put 1/30/96 3,000 3,000
- ----------------------------------------------------------------------------
MICHIGAN (3.6%)
Detroit School District State School Aid Notes
Series 1995 4.500% 5/01/96 2,500 2,505
Michigan Job Development Authority P.C.R.
Series 1985 (Mazda Motor Manufacturing
USA Corp. L.O.C. Sumitomo Bank, Ltd.)
V.R.D.B. 5.250% 3,000 3,000
-------
5,505
- ----------------------------------------------------------------------------
MINNESOTA (1.0%)
* Minnesota Housing Finance Authority Single
Family Mortgage Series N 3.600% Mandatory
Put 12/12/96 1,600 1,600
- ----------------------------------------------------------------------------
MISSISSIPPI (0.6%)
Claiborne County (Southern Mississippi Electric
gtd. by National Rural Utilites Cooperative Finance
Corp.) 3.700% Mandatory Put 2/13/96 1,000 1,000
</TABLE>
6
<PAGE>
<TABLE>
Investment Portfolio/December 31, 1995
- ----------------------------------------------------------------------------
<S> <C> <C>
MISSOURI (2.9%)
* Jefferson County (GHF Holdings L.O.C.
Bank One, Indianapolis) V.R.D.B. 5.350% $4,410 $ 4,410
- ----------------------------------------------------------------------------
NEW HAMPSHIRE (3.9%)
* New Hampshire I.D.R. (New England
Power Co.) 4.050% Mandatory Put 2/09/96 6,000 6,000
- ----------------------------------------------------------------------------
NEW MEXICO (0.6%)
* Santa Fe Single Family Mortgage Revenue 4.000%
Mandatory Put 11/15/96 1,000 1,000
- ----------------------------------------------------------------------------
NEW YORK (2.0%)
New York City R.A.N. Series B 4.750% 6/28/96 3,000 3,012
- ----------------------------------------------------------------------------
NORTH CAROLINA (0.6%)
North Carolina Educational Facilities Financing
Revenue (Bowman Grey School Medical Project
L.O.C. Wachovia Bank) V.R.D.B. 5.000% 1,000 1,000
- ----------------------------------------------------------------------------
OHIO (0.3%)
Ohio Enviromental Improvement Revenue
(L.O.C. Pittsburgh National Bank)
V.R.D.B. 4.000% 400 400
- ----------------------------------------------------------------------------
OREGON (1.0%)
Klamath Falls Electric Revenue Salt Caves
Hydroelectricity Series D 4.400%
Mandatory Put 5/01/96 1,500 1,500
- ----------------------------------------------------------------------------
PENNSYLVANIA (3.3%)
Pennsylvania T.A.N. Series 1995-96
4.500% 6/28/96 3,000 3,011
Philadelphia T.R.A.N. 4.500% 6/27/96 2,000 2,005
-------
5,016
- ----------------------------------------------------------------------------
SOUTH CAROLINA (8.6%)
* South Carolina Economic Development Authority
(Specialty Equipment Companies L.O.C.
Barclays Bank PLC) V.R.D.B. 5.350% 3,000 3,000
South Carolina Local Education Agencies Pooled
Tax and Revenue Anticipation Note Program
Series 1995 A 5.000% 8/14/96 5,000 5,015
York County P.C.R. (gtd. by National Rural
Utilities Cooperative Finance Corp.):
3.800% Optional Put 2/15/96 (Saluda River) 3,300 3,300
3.800% Optional Put 2/15/96 (North
Carolina Electric Co.) 2,000 2,000
-------
13,315
</TABLE>
7
<PAGE>
<TABLE>
Investment Portfolio/December 31, 1995
<CAPTION>
- ---------------------------------------------------------------------------
MUNICIPAL SECURITIES - CONT. PAR VALUE
- ---------------------------------------------------------------------------
<S> <C> <C>
TENNESSEE (3.7%)
Blount County Hospital Revenue Refunding
Series 1996 A (MBIA Insured) 3.900% 7/01/96 $1,775 $ 1,775
* McMinn County Industrial Development Board
I.D.R. (L.O.C. NBD Bank) V.R.D.B. 5.250% 4,000 4,000
-------
5,775
- ---------------------------------------------------------------------------
TEXAS (11.1%)
Denton I.D.R. (Safety-Kleen Corp. L.O.C. Swiss
Bank Cooperation) V.R.D.B. 5.050% 830 830
* Harris County Industrial Development Corp.
(Exxon Corp.) 6.150% V.R.D.B. 500 500
* Harris County Industrial Development Corp. I.D.R.
(Precision General Project L.O.C. Morgan
Guaranty) V.R.D.B. 5.350% 2,060 2,060
* North Texas Higher Education Authority Texas
Student Loan Revenue Refunding Series A
L.O.C. Student Loan Marketing Association)
V.R.D.B. 5.250% 1,100 1,100
* Robertson County Industrial Development Corp.
I.D.R. Series 1995 (L.O.C. Harris Bank)
V.R.D.B. 5.200% 1,800 1,800
* San Antonio Airport Lease Special Project
Revenue (Hedrick Beechcraft, Inc. gtd. by
Raytheon Co.) Series 1992 V.R.D.B. 5.250% 3,900 3,900
Texas G.O. Veteran's Housing Assistance
Program Funding Series 1995 V.R.D.B. 5.050% 2,000 2,000
Texas T.R.A.N. 4.750% 8/30/96 5,000 5,026
-------
17,216
- ---------------------------------------------------------------------------
VERMONT (0.3%)
* Vermont I.D.R. (Rye Gate L.O.C. ABN
Amro) V.R.D.B. 5.100% 500 500
- ---------------------------------------------------------------------------
WASHINGTON (1.3%)
* Yakima County Public Corp I.D.R. (L.O.C.
Bayerische Vereinsbank AG)
V.R.D.B. 5.350% 2,000 2,000
- ---------------------------------------------------------------------------
WISCONSIN (12.2%)
* Carlton P.C.R. Series 1988 (Wisconsin
Power and Light) V.R.D.B. 5.150% 6,500 6,500
* Fond Du Lac I.D.R. (Brenner Tank Inc. L.O.C.
Bank One, Milwaukee) V.R.D.B. 5.350% 3,825 3,825
* Holland I.D.R. (White Clover Daily Inc. L.O.C.
Bank One, Milwaukee) V.R.D.B. 5.350% 3,085 3,085
</TABLE>
8
<PAGE>
<TABLE>
Investment Portfolio/December 31, 1995
- ----------------------------------------------------------------------------
<S> <C> <C>
WISCONSIN -CONT.
* Kenosha I.D.R. (Monarch Plastics Inc. L.O.C.
Bank One, Milwaukee) V.R.D.B. 5.350% $2,430 $ 2,430
* Oak Creek I.D.R. Series 1995 (McAdams Graphics
L.O.C. Bank One, Milwaukee) V.R.D.B. 5.450% 2,000 2,000
Wisconsin Health Facilities Authority Revenue
(Franciscan Health L.O.C. Toronto Dominion
Bank) V.R.D.B. 5.500% 1,000 1,000
--------
18,840
--------
TOTAL MUNICIPAL SECURITIES (100.0%)
(Amortized Cost $155,291) 155,291
--------
OTHER ASSETS & LIABILITIES, NET- (-0.5%) (705)
- ----------------------------------------------------------------------------
NET ASSETS (100.0%) $154,586
--------
<FN>
* These securities are subject to Alternative Minimum Tax. At December 31,
1995 these securities represented 51.7 percent of net assets.
</TABLE>
See notes to financial statements.
9
<PAGE>
<TABLE>
STEIN ROE & FARNHAM MUNICIPAL MONEY MARKET
PORTFOLIO
STATEMENT OF ASSETS & LIABILITIES
DECEMBER 31, 1995 (UNAUDITED)
<S> <C> <C>
(in thousands)
ASSETS
Investments at value (cost $155,291) $ 155,291
Receivable for:
Interest $ 1,115 1,115
--------- ---------
Total Assets 156,406
LIABILITIES
Payable for:
Investments purchased 1,781
Management fee 32
Other 7
---------
Total Liabilities 1,820
---------
NET ASSETS applicable to investors' beneficial interests $ 154,586
---------
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED DECEMBER 31, 1995
(UNAUDITED)
<S> <C> <C>
(in thousands)
INVESTMENT INCOME
Interest income $ 1,607
EXPENSES
Management fee $ 100
Custodian fees 11
Accounting fees 7
Audit & legal fees 10
Trustees fee 4
Other (13) 119
--------- ---------
Net Investment Income $ 1,488
---------
</TABLE>
See notes to financial statements.
10
<PAGE>
<TABLE>
STEIN ROE & FARNHAM MUNICIPAL MONEY MARKET
PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
<CAPTION>
(unaudited)
Period ended
(in thousands) December 31
------------
INCREASE (DECREASE) IN NET ASSETS 1995
<S> <C>
Operations:
Net investment income $ 1,488
Transactions in investors' beneficial interest
Contributions 183,424
Withdrawals (30,326)
---------
Net transactions in investors' beneficial interest 153,098
---------
Total Increase 154,586
NET ASSETS
Beginning of period
End of period (net of undistributed net
investment income of $153) $ 154,586
---------
</TABLE>
<TABLE>
FINANCIAL HIGHLIGHTS
<CAPTION>
Period ended
December 31
------------
1995
<S> <C>
RATIOS TO AVERAGE NET ASSETS
Expenses 3.24% (a)
Net investment income 0.30% (a)
<FN>
(a) Annualized
</TABLE>
See notes to financial statements.
11
<PAGE>
STEIN ROE & FARNHAM MUINCIPAL MONEY MARKET
PORTFOLIO
NOTES TO FINANACIAL STATEMENTS
DECEMBER 31, 1995 (UNAUDITED)
NOTE 1. ACCOUNTING POLICIES
------------------------------------------------------------------
The following are the significant accounting policies of Stein Roe
& Farnham Municipal Money Market Portfolio (the "Portfolio"), a
series of the SR&F Base Trust (a Massachusetts business trust).
All securities are valued as of December 29, 1995, the last
business day of the period. Municipal securities of the SR&F
Municipal Money Market Portfolio are valued at amortized cost,
which approximates market value. This method involves valuing an
instrument at cost on the purchase date and thereafter assuming a
constant amortization to maturity of any discount or premium,
regardless of the impact of fluctuating interest rates on the
market value of the instrument and does not take into account
unrealized securities gains or losses.
No provision is made for federal income taxes since the Portfolio
complies and intends to continue complying with the applicable
provisions of the Internal Revenue Service Code. Accordingly, no
provisions for federal income taxes is considered necessary.
Securities purchased on a when issued or delayed delivery basis
may be settled a month or more after transaction date. These
securities are subject to market fluctuation during this period.
A maturity date is not shown for municipal securities bearing
variable or floating interest rates that are adjusted periodically
to minimize fluctuations in the value of such securities.
NOTE 2. TRUSTEES' FEES AND TRANSACTIONS WITH AFFILIATES
------------------------------------------------------------------
The SR&F Municipal Money Market Portfolio pay a monthly management
fee to Stein Roe & Farnham Inc. (the "Adviser"), an indirect
wholly-owned subsidiary of Liberty Mutual Insurance Company, for
its services as investment adviser and manager. The management fee
for the SR&F Municipal Money Market Portfolio is computed at an
annual rate of 0.25 of 1 percent of average daily net assets.
Pursuant to an agreement with the Portfolio, the Adviser provides
certain accounting services. For the period ended December 31,
1995, SR&F Municipal Money Market Portfolio incurred charges of
$6,901.
Certain officers and Trustees of the Trust are also officers of
the Adviser. The compensation of Trustees not affiliated with the
Adviser for the Portfolio was $4,089 for the six months ended
December 31, 1995.
NOTE 3. SHORT-TERM DEBT
------------------------------------------------------------------
To facilitate liquidity, the Portfolio maintains a borrowing
arrangement under which it can borrow against portfolio
securities. There were no borrowings for the Portfolio during the
period ended December 31, 1995.
12
<PAGE>
Notes to Financial Statements/December 31, 1995
------------------------------------------------------------------
NOTE 4. INVESTMENT TRANSACTIONS
------------------------------------------------------------------
The aggregate cost of purchases and proceeds from sales or
maturities of securities for the period ended December 31, 1995,
were $75,667 and $79,774 respectively.
NOTE 5. PORTFOLIO COMPOSITION
------------------------------------------------------------------
The Portfolio invests in municipal securities including, but not
limited to, general obligation bonds, revenue bonds and escrowed
bonds (which are bonds that have been refinanced, the proceeds of
which have been invested in U.S. Government obligations and set
aside to pay off the original issue at the first call date or
maturity. The Portfolio's investments include certain municipal
securities that are insured by private insurers who guarantee the
payment of interest and principal in the event of default.
The SR&F Municipal Money Market Portfolio's investments include
certain short-term securities that are backed by bank letters of
credit used to provide liquidity to the issuer in the event of
default of the issuer. At December 31, 1995, 47.3% of the
portfolio was backed by bank letters of credit.
NOTE 6. ORGANIZATION OF THE SR&F MUNICIPAL MONEY MARKET PORTFOLIO
------------------------------------------------------------------
The SR&F Municipal Money Market Portfolio (the "Portfolio") is a
separate series of the SR&F Base Trust, a Massachusetts common
trust organized under an Agreement and Declaration of Trust dated
August 23, 1993. The Declaration of Trust permits the Trustees to
issue non-transferable interests in the Portfolio. The Portfolio
commenced operations on September 28, 1995. At commencement, the
Stein Roe Municipal Money Market Fund contributed $131,562,890 in
securities and other assets and the Colonial Municipal Money
Market Fund contributed $24,119,075 in securities and other assets
which represented ownership of 84.5 percent and 15.5 percent,
respectively.
The Portfolio allocates net asset value, income and expenses based
on the respective percentage ownership of each investor on a daily
basis. At December 31, 1995 Stein Roe Municipal Money Market Fund
and Colonial Municipal Money Market Fund owned 84.1 percent and
15.9 percent, respectively.
13
<PAGE>
<TABLE>
COLONIAL MUNICIPAL MONEY MARKET FUND
STATEMENT OF ASSETS & LIABILITIES
DECEMBER 31, 1995 (UNAUDITED)
<S> <C> <C>
(in thousands except for per share amounts)
ASSETS
Investments in SR&F Municipal Money Market
Portfolio at amortized cost $24,531
Receivable for:
Fund shares sold $ 71
Expense reimbursement due
from adviser 2
Other 78 151
----- -------
Total Assets 24,682
LIABILITIES
Payable for:
Distributions 5
Fund shares repurchased 1,856
Accrued:
Deferred Trustees fees 1
Other 1
-----
Total Liabilities 1,863
-------
NET ASSETS $22,819
-------
Net asset value & redemption price per share -
Class A ($19,943/19,944) $1.00
-------
Net asset value & offering price per share -
Class B ($2,876/2,876) $1.00(a)
-------
COMPOSITION OF NET ASSETS
Capital paid in $22,820
Undistributed net investment income 1
Accumulated net realized loss (2)
-------
$22,819
-------
<FN>
(a) Redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
</TABLE>
See notes to financial statements.
14
<PAGE>
<TABLE>
COLONIAL MUNICIPAL MONEY MARKET FUND
STATEMENT OF OPERATIONS
SIX MONTHS ENDED DECEMBER 31, 1995 (UNAUDITED)
<S> <C> <C>
(in thousands)
INVESTMENT INCOME
Interest income $238
Interest income from
SR&F Municipal Money Market Portfolio 247
Expenses allocated from
SR&F Municipal Money Market Portfolio (18)
----
467
EXPENSES
Administration fee $ 47
Service fee - Class B 4
Distribution fee - Class B 10
Transfer agent 28
Bookkeeping fee 11
Trustees fee 6
Audit fee 11
Custodian fee 1
Legal fee 9
Registration fee 18
Reports to shareholders 5
Other 3
---
153
Fees and expenses waived or borne
by the Administrator (63) 90
--- ----
Net Investment Income $377
----
</TABLE>
See notes to financial statements.
15
<PAGE>
<TABLE>
COLONIAL MUNICIPAL MONEY MARKET FUND
STATEMENT OF CHANGES IN NET ASSETS
<CAPTION>
(unaudited) Period
Period ended ended
(in thousands) December 31 June 30
------------ -------
1995 1994
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income $ 377 $ 518
Distributions:
From net investment income - Class A (348) (485)
From net investment income - Class B (28) (35)
------- -------
1 (2)
Fund Share Transactions:
Receipts for shares sold - Class A 29,680 32,426
Value of distributions reinvested - Class A 342 386
Cost of shares repurchased - Class A (34,755) (36,942)
------- -------
(4,733) (4,130)
------- -------
Receipts for shares sold - Class B 2,783 4,502
Value of distributions reinvested - Class B 23 26
Cost of shares repurchased - Class B (3,041) (5,285)
------- -------
(235) (757)
------- -------
Net Decrease from Fund Share Transactions (4,968) (4,887)
------- -------
Total Decrease (4,967) (4,889)
NET ASSETS
Beginning of period 27,786 32,675
------- -------
End of period (net of overdistributed net
investment income of $1 and none,
respectively) $22,819 $27,786
------- -------
NUMBER OF FUND SHARES
Sold - Class A 29,680 32,426
Issued for distributions reinvested - Class A 342 385
Repurchased - Class A (34,755) (36,942)
------- -------
(4,733) (4,131)
------- -------
Sold - Class B 2,783 4,502
Issued for distributions reinvested - Class B 23 26
Repurchased - Class B (3,040) (5,285)
------- -------
(234) (757)
------- -------
</TABLE>
See notes to financial statements.
16
<PAGE>
COLONIAL MUNICIPAL MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
NOTE 1. INTERIM FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
In the opinion of the Administrator of Colonial Municipal Money Market Fund
(the Fund) formerly Colonial Tax-Exempt Money Market Fund, a series of Colonial
Trust IV, the accompanying financial statements contain all normal and recurring
adjustments necessary for the fair presentation of the financial position of the
Fund at December 31, 1995, and the results of its operations, the changes in
its net assets and the financial highlights for the six months then ended.
NOTE 2. ACCOUNTING POLICIES
- --------------------------------------------------------------------------------
ORGANIZATION: The Fund is a Massachusetts business trust, registered under the
Investment Company Act of 1940, as amended, as a non-diversified, open-end,
management investment company. The Fund invests all of its investable assets in
interests in the SR&F Municipal Money Market Portfolio (the Portfolio), a
Massachusetts business trust, having the same investment objective as the
Fund. The value of the Fund's investment in the Portfolio reflects the Fund's
proportionate interest in the net assets of the Portfolio (15.9% at December 31,
1995). The performance of the Fund is directly affected by the performance of
the Portfolio.
The financial statements of the Portfolio, including the portfolio of
investments, are included elsewhere in this report and should be read in
conjunction with the Fund's financial statements. The Fund may issue an
unlimited number of shares and offers Class A and Class B shares. Class B shares
are identical to Class A shares except for an annual service and distribution
fee and a contingent deferred sales charge. Class B shares will convert to Class
A shares when they have been outstanding approximately eight years. The
following is a summary of significant accounting policies followed by the Fund
in the preparation of its financial statements.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities (and disclosures of
contingent assets and liabilities) at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
SECURITY VALUATION AND TRANSACTIONS: Valuation of securities by the Portfolio is
discussed in Note 1 of the Portfolio's Notes to Financial Statements which are
included elsewhere in this report.
DETERMINATION OF CLASS NET ASSET VALUES AND FINANCIAL HIGHLIGHTS: All income,
expenses (other than the Class B service and distribution fee), realized and
unrealized gains (losses), are allocated to each class proportionately on a
daily basis for purposes of determining the net asset value of each class.
Class B per share data and ratios are calculated by adjusting the net investment
income per share data and ratios for the Fund for the entire period by the
annualized distribution fee applicable to Class B shares only.
17
<PAGE>
Notes to Financial Statements/December 31, 1995
- --------------------------------------------------------------------------------
NOTE 2. ACCOUNTING POLICIES - CONT.
- --------------------------------------------------------------------------------
FEDERAL INCOME TAXES: Consistent with the Fund's policy to qualify as a
regulated investment company and to distribute all of its taxable income, no
federal income tax has been accrued.
DISTRIBUTIONS TO SHAREHOLDERS: The Fund declares and records distributions daily
and pays monthly.
NOTE 3. FEES AND COMPENSATION PAID TO AFFILIATES
- --------------------------------------------------------------------------------
MANAGEMENT FEE: Through September 27, 1995, Colonial Management Associates,
Inc., was the investment Adviser of the Fund furnishing accounting and other
services and office facilities for a monthly fee equal to 0.50% of average net
assets. Through September 27, 1995, management fees paid during the period
amounted to $33,610.
ADMINISTRATION FEE: Colonial Management Associates, Inc. (the Administrator) is
the administrator of the Fund and furnishes accounting and other services and
office facilities for a monthly fee equal to 0.25% annually of the Fund's
average net assets.
BOOKKEEPING FEE: The Administrator provides bookkeeping and pricing services for
$18,000 per year plus 0.0233% of the Fund's average net assets over $50 million.
TRANSFER AGENT: Colonial Investors Service Center, Inc. (the Transfer Agent), an
affiliate of the Administrator, provides shareholder services for a monthly fee
equal to 0.20% annually of the Fund's average net assets and receives a
reimbursement for certain out of pocket expenses.
UNDERWRITING DISCOUNTS, SERVICE AND DISTRIBUTION FEES: Colonial Investment
Services, Inc. (the Distributor), an affiliate of the Administrator, is the
Fund's principal underwriter. During the six months ended December 31, 1995, the
Fund has been advised that the Distributor received contingent deferred sales
charges (CDSC) of $7,095 on Class B share redemptions.
The Fund has adopted a 12b-1 plan which requires the payment of a service fee to
the Distributor equal to 0.25% annually of Class B's net assets as of the 20th
of each month. The plan also requires the payment of a distribution fee to the
Distributor equal to 0.75% annually of the average net assets attributable to
Class B shares only.
The CDSC and the fees received from the 12b-1 plan are used principally as
repayment to the Distributor for amounts paid by the Distributor to dealers who
sold such shares.
EXPENSE LIMITS: The Administrator has agreed, until further notice, to waive
fees and bear certain Fund expenses to the extent that total expenses (exclusive
of service and distribution fees, commissions, taxes, and extraordinary
expenses, if any) exceed 0.75% annually of the Fund's average net assets.
18
<PAGE>
Notes to Financial Statements/December 31, 1995
- --------------------------------------------------------------------------------
NOTE 3. FEES AND COMPENSATION PAID TO AFFILIATES - CONT.
- --------------------------------------------------------------------------------
OTHER: The Fund pays no compensation to its officers, all of whom are employees
of the Administrator.
The Fund's Trustees may participate in a deferred compensation plan which may be
terminated at any time. Obligations of the plan will be paid solely out of the
Fund's assets.
NOTE 4. RESULTS OF SPECIAL SHAREHOLDERS MEETING
- --------------------------------------------------------------------------------
On September 15, 1995, a special meeting of shareholders was held and the
conversion of the Fund to the master fund/feeder fund structure with new
fundamental and non- fundamental investment policies was approved. The
conversion was effective September 28, 1995. Out of the shares of beneficial
interest outstanding on June 30, 1995, 11,886,162 voted for the conversion of
the Fund to the master fund/feeder fund structure with new fundamental and
non-fundamental investment policies, 403,477 voted against and 2,973,428
abstained. Of the shares of beneficial interest outstanding that abstained,
610,277 represented broker non-votes.
19
<PAGE>
<TABLE>
COLONIAL MUNICIPAL MONEY MARKET FUND
FINANCIAL HIGHLIGHTS
Selected data for a share of each class outstanding throughout each
period are as follows:
<CAPTION>
(unaudited)
Period ended Period ended
December 31 (c) June 30(b)
----------------------------------------------------------------
1995 1995
Class A Class B Class A Class B
------- ------- ------- -------
<S> <C> <C> <C> <C>
Net asset value -
Beginning of period $ 1.000 $1.000 $ 1.000 $1.000
------- ------ ------- ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (a) 0.015 0.011 0.018 0.012
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.015) (0.011) (0.018 (0.012)
------- ------ ------- ------
Net asset value -
End of period $ 1.000 $1.000 $ 1.000 $1.000
------- ------ ------- ------
Total return (d)(e) 1.65%(f)(g) 1.39%(f)(g) 1.80%(f) 1.20%
------- ------ ------- ------
RATIOS TO AVERAGE NET ASSETS
Expenses 0.75%(h) 1.75%(h) 0.75%(h) 1.75%
Fees and expenses waived or
borne by the adviser 0.50%(h) 0.50%(h) 0.36%(h) 0.36%
Net investment income 3.10%(h) 2.10%(h) 3.05%(h) 2.05%
Net assets at end
of period (000) $19,943 $2,876 $24,675 $3,111
(a) Net of fees and expenses waived or
borne by the Administrator
which amounted to .............. $ 0.002 $0.002 $ 0.002 $0.002
<FN>
(b) The Fund changed its fiscal year end from November 30 to June 30 in 1995.
(c) Effective September 28, 1995, SR&F became the investment Adviser of the Fund.
(d) Total return at net asset value assuming all distributions reinvested and no contingent
deferred sales charge.
(e) Had the Administrator not waived or reimbursed a portion of expenses total return would
have been reduced.
(f) Not annualized.
(g) Total returns which include periods prior to September 28, 1995, include performance of
SR&F, which had no 12b-1 fees.
(h) Annualized.
</TABLE>
20
<PAGE>
<TABLE>
COLONIAL MUNICIPAL MONEY MARKET FUND
FINANCIAL HIGHLIGHTS - CONTINUED
<CAPTION>
Year ended November 30
---------------------------------------------------
1994 1993
Class A Class B Class A Class B
------- ------- ------- -------
<S> <C> <C> <C>
$ 1.000 $1.000 $ 1.000 $1.000
------- ------ ------- ------
0.020 0.010 0.017 0.009
(0.020) (0.010) (0.017) (0.009)
$ 1.000 $1.000 $ 1.000 $1.000
------- ------ ------- ------
2.00% 1.01% 1.73% 0.93%
------- ------ ------- ------
0.60% 1.60% 0.75% 1.75%
0.59% 0.59% 0.50% 0.50%
2.05% 1.05% 1.69% 0.69%
$28,808 $3,867 $18,618 $ 908
$0.006 $0.006 $0.005 $0.005
</TABLE>
21
<PAGE>
<TABLE>
COLONIAL MUNICIPAL MONEY MARKET FUND
FINANCIAL HIGHLIGHTS - CONTINUED
Selected data for a share of each class outstanding throughout each
period are as follows:
<CAPTION>
Year ended November 30
----------------------------------------------
1992 1991 1990
Class A Class B (b) Class A Class B
---------- -------- --------- ---------
<S> <C> <C> <C> <C>
Net asset value -
Beginning of period $ 1.000 $1.000 $ 1.000 $ 1.000
------- ------ ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (a) 0.024 0.007 0.042 0.055
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.024) (0.007 (0.042) (0.055)
------- ------ ------- -------
Net asset value -
End of period $ 1.000 $1.000 $ 1.000 $ 1.000
------- ------ ------- -------
Total return (c)(d) 2.44% 0.68%(e) 4.26% 5.64%
------- ------ ------- -------
RATIOS TO AVERAGE NET ASSETS
Expenses 0.75% 1.75%(f) 0.75% 0.75%
Fees and expenses waived or
borne by the adviser 0.61% 0.79%(f) 0.53% 0.38%
Net investment income 2.42% 1.42(f) 4.23% 5.50%
Net assets at end
of period (000) $34,956 $ 135 $28,355 $37,158
(a) Net of fees and expenses waived or
borne by the Administrator
which amounted to .............. $ 0.006 $0.003 $ 0.005 $ 0.004
<FN>
(b) Class B shares were initially offered on May 5, 1992. Per share amounts reflect
activity from that date.
(c) Total return at net asset value assuming all distributions reinvested and no contingent
deferred sales charge.
(d) Had the Administrator not waived or reimbursed a portion of expenses total return would
have been reduced.
(e) Not annualized.
(f) Annualized.
</TABLE>
22
<PAGE>
IMPORTANT INFORMATION ABOUT THIS REPORT
The Transfer Agent for Colonial Municipal Money Market Fund is:
Colonial Investors Service Center, Inc.
P.O. Box 1722
Boston, Ma 02105-1722
1-800-345-6611
Colonial Municipal Money Market Fund mails one shareholder report to each
shareholder address. If you would like more than one report, please call our
Literature Department at 1-800-248-2828 and additional reports will be sent to
you.
This report has been prepared for shareholders of Colonial Municipal Money
Market Fund. This report may also be used as sales literature when preceded or
accompanied by the current prospectus which provides details of sales charges,
investment objectives and operating policies of the Fund.
23
<PAGE>
[LOGO] COLONIAL
MUTUAL FUNDS
Mutual Funds for
Planned Portfolios
- --------------------------------------------------------------------------------
TRUSTEES
ROBERT J. BIRNBAUM
Trustee (formerly Special Counsel, Dechert, Price & Rhoads; President and Chief
Operating Officer, New York Stock Exchange, Inc.)
TOM BLEASDALE
Trustee (formerly Chairman of the Board and Chief Executive Officer, Shore Bank
& Trust Company)
LORA S. COLLINS
Attorney, Kramer, Levin, Naftalis, Nessen, Kamin & Frankel
JAMES E. GRINNELL
Private Investor (formerly Senior Vice President-Operations, The Rockport
Company)
WILLIAM D. IRELAND, JR.
Trustee (formerly Chairman of the Board, Bank of New England-Worcester)
RICHARD W. LOWRY
Private Investor (formerly Chairman and Chief Executive Officer, U.S. Plywood
Corporation)
WILLIAM E. MAYER
Dean, College of Business and Management, University of Maryland (formerly
Dean, Simon Graduate School of Business, University of Rochester; Chairman and
Chief Executive Officer, C.S. First Boston Merchant Bank; and President and
Chief Executive Officer, The First Boston Corporation)
JAMES L. MOODY, JR.
Chairman of the Board, Hannaford Bros. Co. (formerly Chief Executive Officer,
Hannaford Bros. Co.)
JOHN J. NEUHAUSER
Dean, Boston College School of Management
GEORGE L. SHINN
Financial Consultant (formerly Chairman, Chief Executive Officer and
Consultant, The First Boston Corporation)
ROBERT L. SULLIVAN
Management Consultant (formerly Management Consultant, Saatchi and Saatchi
Consulting Ltd. and Principal and International Practice Director, Management
Consulting, Peat Marwick Main & Co.)
SINCLAIR WEEKS, JR.
Chairman of the Board, Reed & Barton Corporation
------------------------------
NOT FDIC- MAY LOSE VALUE
INSURED NO BANK GUARANTEE
------------------------------
COLONIAL INVESTMENT SERVICES, INC. Distributor /c/ 1996
One Financial Center, Boston, Massachusetts 02111-2621, 617-426-3750
TM-03/708B-1295 (2/96)
- --------------------------------------------------------------------------------
