<PAGE>
COLONIAL
MUNICIPAL
MONEY MARKET
FUND
ANNUAL REPORT
JUNE 30, 1996
NOT FDIC- MAY LOSE VALUE
INSURED NO BANK GUARANTEE
<PAGE>
COLONIAL MUNICIPAL MONEY MARKET FUND HIGHLIGHTS
JULY 1, 1995 - JUNE 30, 1996
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 in the Stein Roe & Farnham
Municipal Money Market Portfolio, which invests primarily in variable rate
demand notes, commercial paper and other short-term tax-exempt securities.
PORTFOLIO MANAGER COMMENTARY: "During the second quarter of 1996, we took
advantage of the rising municipal interest rate environment by investing a
significant portion of the Fund's assets in variable rate notes, securities
whose interest rates change as market interest rates change. We also positioned
the Fund to be relatively market neutral so that it may respond quickly to
future interest rate moves. We accomplished this by investing primarily in daily
and weekly obligations; the Fund has little exposure to securities with
maturities longer than 90 days."
<TABLE>
<CAPTION>
Class A Class B
<S> <C> <C>
Inception dates 6/16/87 5/5/92
Distributions declared per share $ 0.030 $0.020
Seven-day yields on 6/30/96 2.782% 1.812%
Seven-day tax-equivalent yields on 6/30/96* 4.606% 3.000%
30-day yields on 6/30/96 2.814% 1.813%
</TABLE>
*Taxable-equivalent yields are based on the 39.6% federal income tax rate.
<TABLE>
<CAPTION>
PORTFOLIO BREAKDOWN** PORTFOLIO MATURITY
(as of 6/30/96) (as of 6/30/96)
<S> <C> <C> <C>
Variable Rate Notes............59.2% 0-29 days.....................67.2%
Other Tax-Exempts..............14.2% 30-59 days....................12.7%
Put Bonds.......................9.4% 60-89 days.....................4.3%
Commercial Paper...............8.4% 90-179 days....................5.4%
Tax-Exempt Bonds................5.7% 180-375 days..................10.4%
Tax Anticipation Notes..........2.7%
General Obligation Bond.........0.4%
</TABLE>
** Based upon market value of the investment portfolio.
Because the Portfolio is actively managed, portfolio breakdown and maturity
weighting will change. Portfolio breakdown and portfolio maturity are based on
total Portfolio market value.
2
<PAGE>
PRESIDENT'S MESSAGE
TO FUND SHAREHOLDERS
I am pleased to present your Fund's annual report for the year ended June 30,
1996. First, however, I would like to extend my thanks to President John A.
McNeice, Jr., who has retired after a career with Colonial that spanned 40
years. We look forward to his continued involvement on the executive committee
of the board of directors at our parent company, Liberty Financial Companies,
Inc.
In my new position, I am directing Colonial's focus on
the delivery of investment performance over the long term. [PHOTO OF
To achieve this mission, we will continue to seek the HAROLD W. COGGER]
optimal combination of talented people and effective
investment disciplines.
The receipt of your annual report is a good time to reflect on market conditions
and the performance of your Fund during the past year. The second half of 1995
saw a combination of falling interest rates and controlled inflation helping the
economy grow at a comfortable pace. Interest rates rose fairly steadily during
the first half of 1996. This increase was caused in part by unemployment
statistics that proved to be lower than anticipated, causing a decline in bond
prices.
With over 12 years of service at Colonial and more than 25 years in the
industry, I am enthusiastic about -- and dedicated to achieving -- Colonial's
mission of providing you with superior investment returns. In my new role, I
look forward to communicating with you about your Colonial investment. We
appreciate the opportunity to help you meet your investment goals.
Respectfully,
/s/Harold W. Cogger
Harold W. Cogger
President
August 21, 1996
Because market conditions change frequently, there can be no assurance that the
trends described here will continue, come to pass or affect Fund performance.
3
<PAGE>
STEIN ROE & FARNHAM MUNICIPAL MONEY MARKET
PORTFOLIO
INVESTMENT PORTFOLIO
JUNE 30, 1996 (IN THOUSANDS)
<TABLE>
<CAPTION>
MUNICIPAL SECURITIES - (104.5%) PAR VALUE
---------------------------------------------------------------------------------
<S> <C> <C>
ALABAMA (6.1%)
* Alabama I.D.A. Solid Waste Disposal Revenues
(Pine City Fiber Company L.O.C. Barclays
Bank Plc) V.R.D.B. 3.500% $ 5,750 $ 5,750
* Cullman Industrial Development Board
(National Bedding Co. L.O.C. Bank of America)
V.R.D.B. 3.650% 3,000 3,000
---------------
8,750
---------------
---------------------------------------------------------------------------------
ARIZONA (2.4%)
* Coconino P.C.R.(Tuscon Power
L.O.C. Canadian Imperial Bank
of Commerce) V.R.D.B. 3.500% 2,200 2,200
* Maricopa County I.D.A. Series D
(L.O.C. Bank One, Arizona) V.R.D.B. 3.500% 1,200 1,200
---------------
3,400
---------------
---------------------------------------------------------------------------------
ARKANSAS (2.5%)
* Clark County Solid Waste Disposal Revenue
(Reynolds Metals Co. L.O.C. Trust Company Bank)
V.R.D.B. 3.550% 3,000 3,000
Paragould Sales Tax Revenue (AMBAC Insured)
4.750% 7/01/97 550 553
---------------
3,553
---------------
---------------------------------------------------------------------------------
CALIFORNIA (10.1%)
* California Housing Financial Agency Revenue
(Bayerland L.O.C. First Trust, San
Francisco) 3.500% Mandatory Put 2/01/97 1,500 1,500
California School Cash Reserve Program
Authority Pool Series A 4.750% 7/02/97 2,000 2,017
California Statewide Community Development
Authority T.R.A.N. 4.750% 6/30/97 1,000 1,007
Coast California Local Education Agencies Pooled
T.R.A.N.:
Series 1995 A 5.000% 8/14/96 5,000 5,003
Series 1996A 4.750% 6/30/97 1,090 1,097
Los Angeles School District T.R.A.N.:
4.500% 7/03/96 Series 95-96 2,750 2,750
4.500% 6/30/97 Series 96-97 1,000 1,007
---------------
14,381
---------------
</TABLE>
4
<PAGE>
<TABLE>
<CAPTION>
Investment Portfolio/June 30, 1996
---------------------------------------------------------------------------------
<S> <C> <C>
DISTRICT OF COLUMBIA (0.8%)
District of Columbia Revenue Series 1985
(American University L.O.C. National
Westminister Bank) V.R.D.B. 3.150% $ 1,100 $ 1,100
---------------------------------------------------------------------------------
FLORIDA (3.5%)
* Collier County Housing Financial Authority
(Saxon Manor Isles L.O.C. PNC Bank of
Kentucky) V.R.D.B. 3.400% 2,000 2,000
St. Lucie County P.C.R. (Florida
Power and Light)
3.450% Mandatory Put 7/23/96 2,000 2,000
3.600% Mandatory Put 11/8/96 1,000 1,000
---------------
5,000
---------------
---------------------------------------------------------------------------------
GEORGIA (2.7%)
* Development Authority of Gwinnett County I.D.R.
(Price Companies, Inc. L.O.C. NationsBank)
V.R.D.B. 3.500%
3,000 3,000
Hapeville Development Revenue I.D.R. (Hapeville
Hotel Ltd. L.O.C. Deutsche Bank Corp.)
V.R.D.B 3.600% 900 900
---------------
3,900
---------------
---------------------------------------------------------------------------------
IDAHO (1.4%)
Idaho T.A.N. Series 1996 4.500% 6/30/97 2,000 2,011
---------------------------------------------------------------------------------
ILLINOIS (7.8%) City of Chicago G.O.:
3.650% Mandatory Put 10/31/96 (L.O.C.
Morgan Guaranty) 1,000 1,000
3.100% Mandatory Put 2/04/97 (L.O.C.
Hessen Bank) 2,000 2,000
* Illinois Development Finance Authority
Sewage Facilities Revenue (Nutrasweet Co.
Project gtd. by Monsanto Co.) V.R.D.B. 3.400% 3,200 3,200
Illinois Health Facilities Authority Revenue
(University of Chicago Hospital)
Optional Put 8/6/96 3,000 3,000
* Illinois Student Assistance Student Loan Revenue
Series 1996 A (L.O.C. Bank of America)
V.R.D.B. 3.600% 2,000 2,000
---------------
11,200
---------------
---------------------------------------------------------------------------------
INDIANA (5.2%)
Fort Wayne Hospital Authority Revenue (Parkview
Memorial Hospital L.O.C. Fuji Bank, Ltd.) V.R.D.B.:
3.350% Series B 1,000 1,000
3.350% Series C 1,000 1,000
</TABLE>
5
<PAGE>
<TABLE>
<CAPTION>
Investment Portfolio/June 30, 1996
----------------------------------------------------------------------------------
MUNICIPAL SECURITIES - CONT. PAR VALUE
----------------------------------------------------------------------------------
<S> <C> <C>
INDIANA - CONT.
* Franklin Economic Development Revenue
Refunding (L.O.C. Federal Home Loan Bank,
Indianapolis) V.R.D.B. 3.500% $ 2,965 $ 2,965
Gary Enviromental Improvement Revenue (U.S.
Steel L.O.C. Bank of Nova Scotia)
V.R.D.B. 3.700%
500 500
* LaPorte County Economic Development Revenue
(Woodland Project L.O.C. Federal Home Loan
Bank, Indianapolis) V.R.D.B. 3.500%
2,000 2,000
---------------
7,465
---------------
---------------------------------------------------------------------------------
IOWA (0.7%)
Iowa School Corporations Warrant Certificates
Series 1996-97 B (Capital Guaranty Insured)
4.250% 1/30/97 1,000 1,005
---------------------------------------------------------------------------------
KANSAS (0.1%)
Kansas City I.D.R. (PQ Corp. L.O.C.
Credit Suisse Bank) V.R.D.B. 3.700% 200 200
---------------------------------------------------------------------------------
KENTUCKY (6.3%)
* Covington I.D.R. Series 1991 (White Castle
Distributing L.O.C. Bank One, Columbus)
V.R.D.B. 3.550% 3,980 3,980
* Pulaski County Solid Waste Development
(Eastern Kentucky Power gtd. by National
Rural Utilities Cooperative Finance Corp.)
3.200% Opitional put 8/15/96 3,000 3,000
* Shelby County Industrial Building Revenue
(Roll Form Corp. L.O.C. Bank One of Kentucky)
V.R.D.B. 3.550% 2,000 2,000
---------------
8,980
---------------
---------------------------------------------------------------------------------
LOUISIANA (2.2%)
Louisiana G.O. Series 1996 A
(FGIC Insured) 3.550% 8/01/96 1,000 1,000
Lousiana Recovery District Sales Tax Revenue
(MBIA Insured) 7.625% 7/01/96 1,000 1,000
* Parish of St. Charles P.C.R. Series 1991
(Shell Oil Co.) V.R.D.B. 3.800% 1,200 1,200
---------------
3,200
---------------
---------------------------------------------------------------------------------
MARYLAND (3.2%)
* Ann Arundel County E.D.R. (Baltimore
Gas and Electric Company):
3.400% Mandatory Put 7/18/96 3,000 3,000
3.700% Mandatory Put 9/10/96 1,000 1,000
</TABLE>
6
<PAGE>
<TABLE>
<CAPTION>
Investment Portfolio/June 30, 1996
----------------------------------------------------------------------------------
<S> <C> <C>
3.700% Mandatory Put 10/18/96 $ 500 $ 500
---------------
4,500
---------------
----------------------------------------------------------------------------------
MICHIGAN (2.1%)
Michigan Job Development Authority P.C.R.
Series 1985 (Mazda Motor Manufacturing
USA Corp. L.O.C. Sumitomo Bank, Ltd.)
V.R.D.B. 3.550% 3,000 3,000
----------------------------------------------------------------------------------
MINNESOTA (1.1%)
* Minnesota Housing Finance Authority Single
Family Mortgage Series N 3.600% Mandatory
Put 12/12/96 1,600 1,600
----------------------------------------------------------------------------------
MISSOURI (3.8%)
* Jefferson County (GHF Holdings L.O.C.
Bank One, Indianapolis) V.R.D.B. 3.550% 4,410 4,410
St. Louis T.R.A.N.
4.750% 6/30/97 1,000 1,008
---------------
5,418
---------------
----------------------------------------------------------------------------------
NEW HAMPSHIRE (3.5%)
* New Hampshire I.D.R. (New England
Power Co.):
3.350% Mandatory Put 8/07/96 2,000 2,000
3.600% Mandatory Put 8/09/96 3,000 3,000
---------------
5,000
---------------
----------------------------------------------------------------------------------
NEW JERSEY (1.4%)
Essex County T.A.N.S. (L.O.C. Chemical Bank)
4.000% 8/19/96 2,000 2,002
----------------------------------------------------------------------------------
NEW MEXICO (0.7%)
* Santa Fe Single Family Mortgage Revenue 4.000%
Mandatory Put 11/15/96 1,000 1,000
----------------------------------------------------------------------------------
NORTH DAKOTA (0.7%)
* Mercer County Solid Waste Disposal Series
1993 V (gtd. by National Rural Utilities
Cooperative Finance Corp.) 3.650%
Optional Put 12/01/96 1,000 1,000
----------------------------------------------------------------------------------
OHIO (1.4%)
Cuyahoga Hospital Revenue (MBIA Insured)
6.500% 1/15/97 1,520 1,543
Ohio Enviromental Improvement Revenue
(U.S. Steel L.O.C. Pittsburgh National Bank)
V.R.D.B. 4.000% 400 400
---------------
1,943
---------------
</TABLE>
7
<PAGE>
<TABLE>
<CAPTION>
Investment Portfolio/June 30, 1996
----------------------------------------------------------------------------------
MUNICIPAL SECURITIES - CONT. PAR VALUE
----------------------------------------------------------------------------------
<S> <C> <C>
OREGON (0.1%)
* Port St. Helen P.C.R. Series 1990A
(Portland General Electric Co. L.O.C. Swiss
Bank) V.R.D.B. 3.800% $ 200 $ 200
----------------------------------------------------------------------------------
PENNSYLVANIA (1.7%)
* Pennsylvania Housing Financial Authority Single
Family Mortgage Series 1991-31-A 6.300% 4/01/97 750 761
Schuykill County I.D.A. (Westwood Energy
Properties Limited Partnership L.O.C. Fuji Bank
Ltd.) V.R.D.B. 3.850% 200 200
Westview Water Bonds (FGIC Insured)
3.600% 11/15/96 1,410 1,410
---------------
2,371
---------------
----------------------------------------------------------------------------------
SOUTH CAROLINA (2.4%)
Columbia Water and Sewer Revenue
(MBIA Insured) (Escrowed in U.S. Treasury
Securities) (pre-refunded to 10/01/96) 7.375% 505 515
* South Carolina Economic Development Authority
(Specialty Equipment Companies L.O.C.
Barclays Bank Plc) V.R.D.B. 3.550% 3,000 3,000
---------------
3,515
---------------
----------------------------------------------------------------------------------
TENNESSEE (4.0%)
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. 3.550% 4,000 4,000
---------------
5,775
---------------
----------------------------------------------------------------------------------
TEXAS (10.9%)
* Harris County Industrial Development Corp. I.D.R.
(Precision General Project L.O.C. Morgan
Guaranty) V.R.D.B. 3.550% 2,060 2,060
Houston Independent School District
Tax Notes 4.000% 7/15/96 1,355 1,355
* North Texas Higher Education Authority Texas
Student Loan Revenue Refunding Series A
(L.O.C. Student Loan Marketing Association)
V.R.D.B. 3.400% 1,100 1,100
* Port Corpus Christi Sewer and Water (Citgo
Inc. L.O.C. Banque Nationale of Paris)
V.R.D.B. 3.800% 300 300
* Robertson County Industrial Development Corp.
I.D.R. Series 1995 (L.O.C. Harris Bank)
V.R.D.B. 3.400% 1,900 1,900
</TABLE>
8
<PAGE>
<TABLE>
<CAPTION>
Investment Portfolio/June 30, 1996
----------------------------------------------------------------------------------
<S> <C> <C>
TEXAS - CONT.
* San Antonio Airport Lease Special Project
Revenue Series 1992 (Hedrick Beechcraft,
Inc. gtd. by Raytheon Co.) V.R.D.B. 3.350% $ 3,900 $ 3,900
Texas T.R.A.N. 4.750% 8/30/96 5,000 5,007
---------------
15,622
---------------
----------------------------------------------------------------------------------
VERMONT (0.4%)
* Vermont I.D.R. (Rye Gate Project L.O.C.
ABN AMRO) V.R.D.B. 3.500% 500 500
----------------------------------------------------------------------------------
WASHINGTON (2.3%)
Washington G.O. (Escrowed
in U.S. Treasury Securities)
(pre-refunded to 9/01/96) 7.600%
500 503
* Yakima County Public Corp I.D.R. (L.O.C.
Bayerische Vereinsbank AG)
V.R.D.B. 3.500% 2,700 2,700
---------------
3,203
---------------
----------------------------------------------------------------------------------
WISCONSIN (12.4%)
* Carlton P.C.R. Series 1988 (Wisconsin
Power and Light) V.R.D.B. 3.650% 6,500 6,500
* Fond Du Lac I.D.R. (Brenner Tank Inc. L.O.C.
Bank One, Milwaukee) V.R.D.B. 3.550% 3,825 3,825
* Holland I.D.R. (White Clover Daily Inc. L.O.C.
Bank One, Milwaukee) V.R.D.B. 3.550% 2,925 2,925
* Kenosha I.D.R. (Monarch Plastics Inc. L.O.C.
Bank One, Milwaukee) V.R.D.B. 3.550% 2,430 2,430
* Oak Creek I.D.R. Series 1995 (McAdams Graphics
L.O.C. Bank One, Milwaukee) V.R.D.B. 3.550% 2,000 2,000
---------------
17,680
---------------
---------------------------------------------------------------------------------
WYOMING (0.6%)
* Lincoln County P.C.R. (Exxon Corp.)
V.R.D.B. 3.700% 800 800
Sublette County P.C.R. (Exxon Corp.)
V.R.D.B. 3.550% 100 100
---------------
900
---------------
TOTAL MUNICIPAL SECURITIES (104.5%)
(Amortized Cost $149,374) 149,374
---------------
OTHER ASSETS & LIABILITIES, NET- (-4.5%) (6,446)
----------------------------------------------------------------------------------
NET ASSETS (100.0%) $ 142,928
---------------
</TABLE>
* These securities are subject to Alternative Minimum Tax. At June
30, 1996 these securities represented 68.9 percent of net assets.
See notes to financial statements.
9
<PAGE>
STEIN ROE & FARNHAM MUNICIPAL MONEY MARKET
PORTFOLIO
STATEMENT OF ASSETS & LIABILITIES
JUNE 30, 1996
<TABLE>
<S> <C> <C>
(in thousands)
ASSETS
Investments at value (cost $149,374) $ 149,374
Cash $ 9
Receivable for:
Interest 1,283
Investments sold 1,000 2,292
------------ -----------
Total Assets 151,666
LIABILITIES
Payable for Investments purchased 8,702
Other liabilities 36
------------
Total Liabilities 8,738
-----------
NET ASSETS applicable to investors' beneficial interest $ 142,928
-----------
</TABLE>
STATEMENT OF OPERATIONS
PERIOD ENDED JUNE 30, 1996 (a)
<TABLE>
<S> <C> <C>
(in thousands)
INVESTMENT INCOME
Interest income $ 4,402
EXPENSES
Management fee $ 290
Custodian fees 8
Accounting fees 21
Audit & legal fees 23
Trustees fee 6 348
------------ -----------
Net Investment Income $ 4,054
------------ -----------
</TABLE>
(a) The Portfolio commenced operations September 28, 1995.
See notes to financial statements.
10
<PAGE>
STEIN ROE & FARNHAM MUNICIPAL MONEY MARKET
PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Period
ended
(in thousands) June 30 (a)
-------------
<S> <C>
INCREASE (DECREASE) IN NET ASSETS 1996
Operations:
Net investment income $ 4,054
Transactions in investors' beneficial interest
Contributions 241,616
Withdrawals (102,742)
-------------
Net transactions in investors' beneficial interest 138,874
-------------
Total Increase 142,928
NET ASSETS
Beginning of period ----
End of period $ 142,928
-------------
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Period ended
June 30 (a)
-------------
1996
<S> <C>
RATIOS TO AVERAGE NET ASSETS
Expenses 0.30% (b)
Net investment income 3.50% (b)
</TABLE>
(a) The Portfolio commenced operations September 28, 1995.
(b) Annualized
See notes to financial statements.
11
<PAGE>
STEIN ROE & FARNHAM MUNICIPAL MONEY MARKET
PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1996 (IN THOUSANDS)
NOTE 1. 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 $131,563 in securities and
other assets and the Colonial Municipal Money Market Fund contributed $24,119 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 June 30,
1996 Stein Roe Municipal Money Market Fund and Colonial Municipal Money Market
Fund owned 85 percent and 15 percent, respectively.
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
- -------------------------------------------------------------------------------
The following are the significant accounting policies of the Portfolio. The
policies are in conformity with generally accepted accounting principles. The
preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of increases and decreases in net assets from operations
during the reporting period. Actual results could differ from those estimates.
SECURITY VALUATIONS:
All securities are valued as of June 28, 1996, the last
business day of the period. Municipal securities of the 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.
12
<PAGE>
Notes to Financial Statements/June 30, 1996
- -----------------------------------------------------------------------------
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES - CONT.
- -------------------------------------------------------------------------------
SECURITY VALUATIONS - CONT.
Internal Revenue Service Code. Accordingly, no provisions for federal income
taxes is considered necessary.
OTHER INFORMATION:
Realized gains and losses from sales of securities are determined on the
specific identified cost basis. Securities purchased on a when-issued or delayed
delivery basis may be settled a month or more after the transaction date. These
securities are subject to market fluctuation during this period. The Portfolio
did not have any when-issued or delayed delivery purchase commitments as of June
30, 1996. 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.
All amounts, except per-share amounts, are shown in thousands.
NOTE 3. 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 Portfolio's investments included certain short-term securities that are
backed by bank letters of credit used to provide liquidity to the issuer and/or
additional security in the event of default by the issuer. At June 30, 1996,
53.1% of the portfolio was backed by bank letters of credit. See Portfolio's
schedule of investments for additional information on portfolio composition.
NOTE 4. TRUSTEES' FEES AND TRANSACTIONS WITH AFFILIATES
- -------------------------------------------------------------------------------
The management fee for the Portfolio is computed at an annual rate of 0.25 of 1
percent of average daily net assets.
The Adviser also provides certain accounting services. For the period ended June
30, 1996, the Portfolio incurred charges of $21 for these services.
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 for
the period ended June 30, 1996, was $6. No remuneration was paid to any other
trustee or officer of the Trust.
NOTE 5. SHORT-TERM DEBT
- -------------------------------------------------------------------------------
To facilitate portfolio liquidity, the Portfolio maintains borrowing
arrangements under which they can borrow against portfolio securities. There
were no borrowings for the Portfolio during the period ended June 30, 1996.
13
<PAGE>
INDEPENDENT AUDITORS' REPORT
TO THE SHAREHOLDERS AND BOARD OF TRUSTEES OF THE SR&F BASE TRUST
We have audited the accompanying balance sheet, including the schedule of
investments, of SR&F Municipal Money Market Portfolio as of June 30, 1996, the
related statement of operations, and the change in net assets, and financial
highlights for the period from September 28, 1995 to June 30, 1996. These
financial statements and financial highlights are the responsibility of the
Portfolio's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatements. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of June
30, 1996, by correspondence with the custodian and brokers. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as the overall financial statement presentation. We
believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
SR&F Municipal Money Market Portfolio at June 30, 1996, and the results of its
operations, the changes in its net assets, and its financial highlights for the
period from September 28, 1995 to June 30, 1996, in conformity with generally
accepted accounting principles.
Ernst & Young LLP
Chicago, Illinois
August 8, 1996
14
<PAGE>
COLONIAL MUNICIPAL MONEY MARKET FUND
STATEMENT OF ASSETS & LIABILITIES
JUNE 30, 1996
<TABLE>
<S> <C> <C>
(in thousands except for per share amounts)
ASSETS
Investment in SR&F Municipal Money Market
Portfolio $ 21,467
Receivable for:
Fund shares sold $ 13
Expense reimbursement due
from Adviser 11
Other 10 34
-----------------
Total Assets 21,501
LIABILITIES
Payable for:
Fund shares repurchased 528
Distributions 49
Accrued:
Deferred Trustees fees 1
Other 12
---------
Total Liabilities 590
--------
NET ASSETS $ 20,911
--------
Net asset value:
Class A ($19,676/19,678) $ 1.00
--------
Class B ($1,235/1,235) $ 1.00(a)
--------
COMPOSITION OF NET ASSETS
Capital paid in $ 20,912
Accumulated net realized loss (1)
--------
$ 20,911
--------
</TABLE>
(a) Redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
See notes to financial statements.
15
<PAGE>
COLONIAL MUNICIPAL MONEY MARKET FUND
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED JUNE 30, 1996
<TABLE>
<S> <C> <C>
(in thousands)
INVESTMENT INCOME
Interest income $ 238
Interest income from
SR&F Municipal Money Market Portfolio 639
Expenses allocated from
SR&F Municipal Money Market Portfolio (50)
--------
827
EXPENSES
Adviser fee $ 34
Administration fee 42
Service fee - Class B 6
Distribution fee - Class B 18
Transfer agent 53
Bookkeeping fee 20
Trustees fee 12
Audit fee 25
Legal fee 65
Registration fee 48
Reports to shareholders 7
Other 16
---------
346
Fees and expenses waived or borne
by the Adviser/Administrator (196) 150
---------- -------
Net Investment Income $ 677
--------
</TABLE>
See notes to financial statements.
16
<PAGE>
COLONIAL MUNICIPAL MONEY MARKET FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year Period Year
ended ended ended
(in thousands) June 30 June 30 November 30
------------- ------------ -------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN 1996 1995 (a) 1994
NET ASSETS
Operations:
Net investment income $ 677 $ 518 $ 518
------------- ------------ -------------
Distributions:
From net investment income -
Class A (628) (485) (493)
From net investment income -
Class B (49) (35) (23)
------------- ------------ -------------
---- (2) 2
Fund Share Transactions:
Receipts for shares sold - Class A 58,417 32,426 69,633
Value of distributions
reinvested - Class A 550 386 371
Cost of shares
repurchased - Class A (63,966) (36,942) (59,816)
------------- ------------ -------------
(4,999) (4,130) 10,188
------------- ------------ -------------
Receipts for shares sold - Class B 3,838 4,502 9,572
Value of distributions
reinvested - Class B 36 26 15
Cost of shares
repurchased - Class B (5,750) (5,285) (6,628)
------------- ------------ -------------
(1,876) (757) 2,959
------------- ------------ -------------
Net Increase (Decrease) from Fund
Share Transactions (6,875) (4,887) 13,147
------------- ------------ -------------
Total Increase (Decrease) (6,875) (4,889) 13,149
NET ASSETS
Beginning of period 27,786 32,675 19,526
------------- ------------ -------------
End of period (net of undistributed
net investment income of none,
none and $2, respectively) $ 20,911 $ 27,786 $ 32,675
------------- ------------ -------------
NUMBER OF FUND SHARES
Sold - Class A 58,417 32,426 69,633
Issued for distributions
reinvested - Class A 550 385 371
Repurchased - Class A (63,966) (36,942) (59,817)
------------- ------------ -------------
(4,999) (4,131) 10,187
------------- ------------ -------------
Sold - Class B 3,839 4,502 9,572
Issued for distributions
reinvested - Class B 36 26 15
Repurchased - Class B (5,750) (5,285) (6,628)
------------- ------------ -------------
(1,875) (757) 2,959
------------- ------------ -------------
</TABLE>
(a) The Fund changed its fiscal year end from November 30 to June 30 in 1995.
See notes to financial statements.
17
<PAGE>
COLONIAL MUNICIPAL MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1996
NOTE 1. ACCOUNTING POLICIES
ORGANIZATION: Colonial Municipal Money Market Fund (the Fund), formerly Colonial
Tax-Exempt Money Market Fund, a series of Colonial Trust IV, is a
non-diversified portfolio of a Massachusetts business trust registered under the
Investment Company Act of 1940, as amended, as a open-end, management investment
company. The Fund invests all of its investable assets in interests in the Stein
Roe & Farnham (SR&F) Municipal Money Market Portfolio (the Portfolio), a
Massachusetts common 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% at June 30,
1996). 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 preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates. The following is a summary of
significant accounting policies followed by the Fund in the preparation of its
financial statements.
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
service fee and distribution fee applicable to Class B shares only.
FEDERAL INCOME TAXES: Consistent with the Fund's policy to qualify as a
regulated investment company and to distribute all of its taxable income, no
federal income tax has been accrued.
18
<PAGE>
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1996
- -------------------------------------------------------------------------------
NOTE 1. ACCOUNTING POLICIES - CONT.
- -------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS: The Fund declares and records distributions daily
and pays monthly.
NOTE 2. 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% annually of the
Fund's average net assets. Through September 27, 1995, management fees paid
amounted to $33,610.
ADMINISTRATOR: Effective September 28, 1995, Colonial Management Associates,
Inc. (the Administrator) became 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: Effective September 28, 1995, 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. Through September 27, 1995, the Adviser
provided bookkeeping and pricing services for $27,000 per year plus 0.035% of
the Fund's average net assets over $50 million. Through September 27, 1995,
bookkeeping fees paid amounted to $6,675.
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 year ended June 30, 1996, the Fund has
been advised that the Distributor received contingent deferred sales charges
(CDSC) of $13,788 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 (inclusive
of the Fund's proportionate share of the Portfolio's expenses and exclusive of
service and distribution fees, commissions, taxes, and extraordinary expenses,
if any) exceed 0.75% annually of the Fund's average net assets.
19
<PAGE>
Notes to Financial Statements/June 30, 1996
- -------------------------------------------------------------------------------
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 3. PORTFOLIO INFORMATION
- -------------------------------------------------------------------------------
During the period July 1, 1995 through September 27, 1995, purchases and sales
(including maturities) of short-term investments aggregated to $11,205,000 and
$38,765,000, respectively.
NOTE 4. OTHER RELATED PARTY TRANSACTIONS
- -------------------------------------------------------------------------------
At June 30, 1996 the Fund had three shareholders who each owned greater than 5%
of the Fund's shares outstanding.
NOTE 5. RESULTS OF SPECIAL SHAREHOLDERS MEETING (UNAUDITED)
- -------------------------------------------------------------------------------
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.
On June 18, 1996, a special Meeting of shareholders of the Fund was held to
elect nine Trustees of the SR&F Base Trust and to modify the fundamental
investment restrictions of both the SR&F Base Trust and the Fund regarding the
borrowing and lending of money under the interfund lending program. On April 17,
1996, the record date for the Meeting, the Fund had outstanding 24,428,448
shares of beneficial interest. The votes cast at the Meeting were as follows:
To elect nine Trustees of the SR&F Base Trust:
<TABLE>
<CAPTION>
Broker
For Against Abstain Non-Votes
---------- ------- ------- ---------
<S> <C> <C> <C> <C>
Timothy K. Armour 11,922,780 0 255,721 602,994
Kenneth L. Block 11,664,909 0 513,592 602,994
William W. Boyd 11,922,781 0 255,721 602,994
Lindsay Cook 11,906,438 0 272,064 602,994
Douglas A. Hacker 11,649,719 0 528,782 602,994
Francis W. Morley 11,663,756 0 514,745 602,994
Charles R. Nelson 11,907,590 0 270,911 602,994
Thomas C. Theobald 11,904,361 0 284,141 602,994
Gordan R. Worley 11,664,909 0 513,592 602,994
</TABLE>
20
<PAGE>
Notes to Financial Statements/June 30, 1996
- -------------------------------------------------------------------------------
NOTE 5. RESULTS OF SHAREHOLDERS MEETING - CONT. (UNAUDITED)
- -------------------------------------------------------------------------------
To approve the modification of the SR&F Municipal Money Market Portfolio's
(Portfolio) fundamental investment restriction on borrowing to enable it to
borrow money under an interfund lending program:
<TABLE>
<CAPTION>
Broker
For Against Abstain Non-Votes
---------- ------- ------- ---------
<S> <C> <C> <C>
10,718,032 863,598 596,869 602,994
</TABLE>
To approve the modification of the Fund's fundamental investment restriction on
borrowing to enable it to borrow money under an interfund lending program:
<TABLE>
<CAPTION>
Broker
For Against Abstain Non-Votes
---------- ------- ------- ---------
<S> <C> <C> <C>
10,713,216 863,749 601,535 602,994
</TABLE>
To approve the modification of the Portfolio's fundamental investment
restriction on lending to enable it to lend money under an interfund lending
program:
<TABLE>
<CAPTION>
Broker
For Against Abstain Non-Votes
---------- ------- ------- ---------
<S> <C> <C> <C>
10,728,978 852,653 596,869 602,994
</TABLE>
To approve the modification of the Fund's fundamental investment restriction on
lending to enable it to lend money under an interfund lending program:
<TABLE>
<CAPTION>
Broker
For Against Abstain Non-Votes
---------- ------- ------- ---------
<S> <C> <C> <C>
11,001,308 580,323 596,869 602,994
</TABLE>
21
<PAGE>
COLONIAL MUNICIPAL MONEY MARKET FUND
FINANCIAL HIGHLIGHTS
Selected data for a share of each class outstanding throughout each period are
as follows:
<TABLE>
<CAPTION>
Year ended Period ended
June 30 (b) June 30(c)
-------------------------- -------------------------
1996 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) 0.030 (d) 0.020 (d) 0.018 0.012
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.030) (0.020) (0.018) (0.012)
----------- ---------- ----------- ----------
Net asset value -
End of period $ 1.000 $ 1.000 $ 1.000 $ 1.000
----------- ---------- ----------- ----------
Total return (e)(f) 3.04% 2.02% 1.80% (g) 1.20% (g)
----------- ---------- ----------- ----------
RATIOS TO AVERAGE NET ASSETS
Expenses 0.75% (d) 1.75% (d) 0.75% (h) 1.75% (h)
Fees and expenses waived or
borne by the Adviser/
Administrator 0.84% (d) 0.84% (d) 0.36% (h) 0.36% (h)
Net investment income 3.00% (d) 2.00% (d) 3.05% (h) 2.05% (h)
Net assets at end
of period (000) $ 19,676 $ 1,235 $ 24,675 $ 3,111
</TABLE>
<TABLE>
<S> <C> <C> <C> <C>
(a) Net of fees and expenses waived or borne by the Adviser/Administrator
which amounted to $ 0.008 $ 0.008 $ 0.002 $ 0.002
</TABLE>
(b) Effective September 28, 1995, SR&F became the investment Adviser of the
Fund.
(c) The Fund changed its fiscal year end from November 30 to June 30 in
1995.
(d) The per share amounts and ratios reflect income and expenses assuming
inclusion of the Fund's proportionate share of the income and expenses
of SR&F Municipal Money Market Portfolio.
(e) Total return at net asset value assuming all distributions reinvested
and no contingent deferred sales charge.
(f) Had the Adviser/Administrator not waived or reimbursed a portion of
expenses total return would have been reduced.
(g) Not annualized.
(h) Annualized.
22
<PAGE>
COLONIAL MUNICIPAL MONEY MARKET FUND
FINANCIAL HIGHLIGHTS - CONTINUED
<TABLE>
<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>
23
<PAGE>
COLONIAL MUNICIPAL MONEY MARKET FUND
FINANCIAL HIGHLIGHTS - CONTINUED
Selected data for a share of each class outstanding throughout each period are
as follows:
<TABLE>
<CAPTION>
Year ended November 30
--------------------------------------------------------
1992 1991
Class A Class B (b) Class A
--------------- -------------- ---------------
<S> <C> <C> <C>
Net asset value -
Beginning of period $ 1.000 $ 1.000 $ 1.000
--------------- -------------- ---------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (a) 0.024 0.007 0.042
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.024) (0.007) (0.042)
--------------- -------------- ---------------
Net asset value -
End of period $ 1.000 $ 1.000 $ 1.000
--------------- -------------- ---------------
Total return (c)(d) 2.44% 0.68%(e) 4.26%
--------------- -------------- ---------------
RATIOS TO AVERAGE NET ASSETS
Expenses 0.75% 1.75%(f) 0.75%
Fees and expenses waived
or borne by the Adviser 0.61% 0.79%(f) 0.53%
Net investment income 2.42% 1.42%(f) 4.23%
Net assets at end
of period (000) $ 34,956 $ 135 $ 28,355
</TABLE>
<TABLE>
<S> <C> <C> <C>
(a) Net of fees and expenses waived or borne
by the Adviser
which amounted to $ 0.006 $ 0.003 $ 0.005
</TABLE>
(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 Adviser not waived or reimbursed a portion of expenses total return
would have been reduced.
(e) Not annualized.
(f) Annualized.
- --------------------------------------------------------------------------------
Federal income tax information (unaudited)
All of the distributions will be treated as exempt income for federal
income tax purposes.
24
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
T0 THE TRUSTEES OF COLONIAL TRUST IV AND THE SHAREHOLDERS OF
COLONIAL MUNICIPAL MONEY MARKET FUND
In our opinion, the accompanying statement of assets and liabilities, and
the related statements of operations and of changes in net assets and the
financial highlights present fairly, in all material respects, the financial
position of Colonial Municipal Money Market Fund (the "Fund") (a series of
Colonial Trust IV) at June 30, 1996, the results of its operations, the changes
in its net assets and the financial highlights for the year then ended, in
conformity with generally accepted accounting principles. These financial
statements and the financial highlights (hereafter referred to as "financial
statements") are the responsibility of the Fund's management; our responsibility
is to express an opinion on these financial statements based on our audits. We
conducted our audits of these financial statements in accordance with generally
accepted auditing standards which require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of investments owned at June 30, 1996,
provide a reasonable basis for the opinion expressed above.
PRICE WATERHOUSE LLP
Boston, Massachusetts
August 21, 1996
25
<PAGE>
SHAREHOLDER SERVICES
TO MAKE INVESTING EASIER
Colonial has one of the most extensive selections of shareholder services
available. Your financial adviser can help you arrange for any of these
services, or you can call Colonial directly at 1-800-345-6611.
AFFORDABLE ADDITIONAL INVESTMENTS: Add to your account with as little as $50;
$25 for an IRA account.
FREE EXCHANGES*: Exchange all or part of your account into the same share class
of another Colonial fund, by phone or mail, as your needs change over time.
EASY ACCESS TO YOUR MONEY*: Make withdrawals from your account by phone, by mail
or, for certain funds, by check.
FUNDAMATIC: Make periodic investments as low as $50 from your checking account
to your Colonial account.
SYSTEMATIC WITHDRAWAL PLAN (SWP): Receive monthly, quarterly, or semiannual
payments via check or bank transmission. There is a $5,000 account value
required, but no minimum for the payment amount. The maximum annual withdrawal
is 12% of account balance at time SWP is established. SWPs by check are
processed on the 10th of each month.
AUTOMATED DOLLAR COST AVERAGING: Transfer money on a monthly basis from any
Colonial fund with a balance of $5,000 into the same share class of up to four
other Colonial funds. Minimum for each transfer is $100.
LOW COST IRAS: Choose from a broad range of retirement plans, including IRAs.
* Redemptions and exchanges are made at the next determined net asset value
after the request is received by Colonial. Proceeds may be more or less than
your original cost. The exchange privilege may be terminated at any time.
Investors who purchase Class B or Class D shares (for applicable funds), or $1
million or more of Class A shares, may be subject to a contingent deferred sales
charge.
26
<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.
27
<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
COLONIAL INVESTMENT SERVICES, INC., Distributor (C) 1996
One Financial Center, Boston, Massachusetts 02111-2621, 617-426-3750
TM-02/491C-0696 M (8/96)
