COLONIAL TRUST IV, N-30D, 1997-03-10

COLONIAL TRUST IV
N-30D, 1997-03-10

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[COLONIAL LOGO]

- --------------------------------------------------------------------------------

COLONIAL

MUNICIPAL

MONEY MARKET

FUND

- --------------------------------------------------------------------------------

SEMIANNUAL REPORT

DECEMBER 31, 1996

Not FDIC- May lose value
Insured No bank guarantee

<PAGE>

Colonial Municipal Money Market Fund Highlights
July 1, 1996 - December 31, 1996

Investment Objective: Colonial Municipal Money Market Fund seeks maximum
current income exempt from Federal income tax by investing principally in a
diversified portfolio of short-term municipal securities.

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: "Although yields remained in a narrow range
during the second half of the year, we were able to take advantage of periods
of rising interest rates in the third quarter. We accomplished this by
investing primarily in daily and weekly variable rate demand notes; the Fund
has limited exposure to securities with maturities longer than 90 days. We
believe this relatively market neutral position will enable us to respond
quickly to changes in interest rates. We'll continue to look for
opportunities to purchase securities at attractive yields." Ronnie Wallace

Colonial Municipal Money Market Fund Performance

Class A Class B
Inception dates 6/16/87 5/5/92
- --------------------------------------------------------------------------------
Distributions declared per share $0.015 $0.011
- --------------------------------------------------------------------------------
Seven-day yields on 12/31/96 3.310% 2.334%
- --------------------------------------------------------------------------------
Seven-day tax-equivalent yields on 12/31/96* 5.480% 3.864%
- --------------------------------------------------------------------------------
30-day yields on 12/31/96 3.032% 2.052%

Portfolio Breakdown**
(as of 12/31/96)

Variable Rate Notes.......... 65.2%
Other Tax Exempts............ 8.4%
Commercial Paper............. 8.4%
Tax-Exempt Bonds............. 6.4%
Put Bonds.................... 5.5%
Revenue Anticipation Notes... 4.0%
Tax Anticipation Notes....... 2.1%

Portfolio Maturity**
(as of 12/31/96)

0-29 days.................. 66.2%
30-59 days................. 7.9%
60-89 days................. 2.4%
90-179 days................ 5.3%
180-375 days............... 18.2%

*Taxable-equivalent yields are based on the 39.6% federal income tax rate.
**Portfolio breakdown and maturity weightings are calculated as a percentage
of the total market value of the investment portfolio. Because it is actively
managed, there can be no guarantee the portfolio will continue to hold or
invest in these securities in the future.

An investment in the Fund is not insured or guaranteed by the U.S.
Government. There can be no assurance that the $1.00 net asset value per
share will be maintained.

2
<PAGE>

PRESIDENT'S MESSAGE
TO FUND SHAREHOLDERS

I am pleased to present your Fund's semiannual report for the six months
ended December 31, 1996. This report reflects on the investment environment
of the past six months and on the performance of your Fund.

Long-term interest rates were rising during most of the period, having a
negative effect on fixed income investments. However, with recent statistics
suggesting an easing pace of economic activity and a continued benign
inflation outlook, we are hopeful that bond market volatility will be
somewhat reduced in the months ahead.

There was some good news for the tax-exempt sector. Low supply and strong
retail market support enabled municipal bonds to outperform Treasury bonds
for much of the period. The post-election conditions should promote a period
of stability for the tax-exempt market as the flat tax initiative is now a
receding memory.

In the domestic stock market, generally favorable conditions prevailed in
1996, until July, when a price-based correction took place. Since then, the
market has rebounded nicely with the Dow Jones Industrial Average setting
several new records. Internationally, the Tiger countries of the Pacific Rim
continue to offer a good combination of growth and value. In the European
markets, short-term interest rates continue to be much lower than long-term
rates. We expect these conditions to prevail until we see an increase in
economic activity.

Our economic expectations include growth continuing at a slower, but more
sustainable rate, and our outlook for 1997 is relatively bright.

The following report will provide you with specific information on your
Fund's performance as well as an in-depth discussion with your portfolio
manager. As always, we thank you for the opportunity to help you meet your
investment goals through the Colonial family of funds.

Respectfully,

/s/ Harold W. Cogger

Harold W. Cogger
President
February 10, 1997

Because market conditions change frequently, there can be no assurance that
the trends described here will continue, come to pass or affect Fund
performance.

<PAGE>

SR&F MUNICIPAL MONEY MARKET
PORTFOLIO
INVESTMENT PORTFOLIO
DECEMBER 31, 1996 (UNAUDITED, IN THOUSANDS)

MUNICIPAL SECURITIES - (102.2%) PAR VALUE
------------------------------------------------------------------------------
ALABAMA (4.1%)
* Alabama I.D.A. Solid Waste Disposal Revenues
(Pine City Fiber Company L.O.C. Barclays
Bank Plc) V.R.D.B. 4.300% $ 5,750 $ 5,750

.............................................................................
ARIZONA (2.4%)
* Coconino P.C.R.(Tuscon Power
L.O.C. Canadian Imperial Bank
of Commerce) V.R.D.B. 4.300% 2,200 2,200
* Maricopa County I.D.A. Series D
(Vista Ventana Apartments Project gtd. by
Federal National Mortgage Association Securities)
V.R.D.B. 4.350% 1,200 1,200
-----------
3,400
-----------

..............................................................................
ARKANSAS (4.5%)
* Clark County Solid Waste Disposal Revenue
(Reynolds Metals Co. L.O.C. Sun Trust Company Bank)
V.R.D.B. 4.200% 3,000 3,000
Paragould Sales Tax Revenue (AMBAC Insured)
4.750% 7/01/97 550 552
* Pulaski County Public Facilities Board
(Chenel Park Apartments Project L.O.C. PNC
Bank, Kentucky) V.R.D.B. 4.350% 2,750 2,750
-----------
6,302
-----------

..............................................................................
CALIFORNIA (7.8%)
California School Cash Reserve Program
Authority Pool Series A 4.750% 7/02/97 2,000 2,008
California State R.A.N.
Series A 4.500% 6/30/97 5,825 5,842
California Statewide Community Development
Authority T.R.A.N. 4.750% 6/30/97 1,000 1,003
Los Angeles School District T.R.A.N.
Series 96-97 4.500% 6/30/97 1,000 1,003
South Coast California Local Education Agencies
Pooled T.R.A.N. Series 1996A 4.750% 6/30/97 1,090 1,094
-----------
10,950
-----------

4
<PAGE>

Investment Portfolio/December 31, 1996
------------------------------------------------------------------------------
COLORADO (0.7%)
Araphoe County School District No. 5 T.A.N.
(Cherry Creek) 4.500% 6/30/97 $ 1,000 $ 1,003

..............................................................................
DISTRICT OF COLUMBIA (0.8%)
District of Columbia Revenue Series 1985
(American University L.O.C. National
Westminister Bank) V.R.D.B. 4.150% 1,100 1,100

..............................................................................
FLORIDA (2.1%)
* Collier County Housing Financial Authority
(Saxon Manor Isles L.O.C. PNC Bank of
Kentucky) V.R.D.B. 4.000% 2,000 2,000
St. Lucie County P.C.R. (Florida
Power and Light)
3.450% Mandatory Put 3/06/97 1,000 1,000
-----------
3,000
-----------

.............................................................................
GEORGIA (2.1%)
* Development Authority of Gwinnett County I.D.R.
(Price Companies, Inc. L.O.C. NationsBank)
V.R.D.B. 4.300% 3,000 3,000

.............................................................................
IDAHO (1.4%)
Idaho T.A.N. Series 1996 4.500% 6/30/97 2,000 2,006

.............................................................................
ILLINOIS (8.8%)
City of Chicago G.O. (L.O.C. LandesBank Hessen)
3.100% Mandatory Put 2/04/97 2,000 2,000
* Illinois Development Finance Authority
(River Oaks Project) (L.O.C. Credit Suisse)
V.R.D.B. 4.100% 1,000 1,000
* Illinois Development Finance Authority
Sewage Facilities Revenue (Nutrasweet Co.
Project gtd. by Monsanto Co.) V.R.D.B. 4.400% 4,100 4,100
Illinois Health Facilities Authority Revenue
(University of Chicago Hospital) 3.750%
Mandatory Put 1/30/97 3,000 3,000
Illinois Sales Tax Revenue Series C (Escrowed in
U.S. Treasury Securities)(pre-refunded to 6/15/97)
6.875% 215 222
* Illinois Student Assistance Student Loan Revenue
Series 1996 A (L.O.C. Bank of America)
V.R.D.B. 4.300% 2,000 2,000
* Southwestern Illinois Development Authority
(Wood River Project) (Shell Oil Co.)
V.R.D.B. 5.050% 100 100
-----------
12,422
-----------

5
<PAGE>

Investment Portfolio/December 31, 1996
------------------------------------------------------------------------------
MUNICIPAL SECURITIES - CONT. PAR VALUE
------------------------------------------------------------------------------
INDIANA (5.3%)
Fort Wayne Hospital Authority Revenue (Parkview
Memorial Hospital L.O.C. Bank of America.) V.R.D.B.:
4.150% Series B $ 1,000 $ 1,000
4.150% Series C 1,000 1,000
* Franklin Economic Development Revenue
Refunding (L.O.C. Federal Home Loan Bank,
Indianapolis) V.R.D.B. 4.2500% 2,927 2,927
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. 4.250% 2,000 2,000
-----------
7,427
-----------

.............................................................................
IOWA (1.6%)
Iowa School Corporations Warrant Certificates
Series 1996-97 B (FSA Insured)
4.250% 1/30/97 1,000 1,001
Iowa Higher Education Loan Authority Revenue
Refunding Series 1996(Private College Facilities)
(MBIA Insured) 4.250% 8/01/97 600 602
Muscatine County Iowa P.C.R.
(Monsanto Co. Project) V.R.D.B. 4.200% 600 600
-----------
2,203
-----------

.............................................................................
KENTUCKY (4.9%)
* Covington I.D.R. Series 1991 (White Castle
Distributing L.O.C. Bank One, Columbus)
V.R.D.B. 4.300% 3,980 3,980
* Pulaski County Solid Waste Development
(Eastern Kentucky Power gtd. by National
Rural Utilities Cooperative Finance Corp.)
3.700% Optional put 2/15/97 1,000 1,000
* Shelby County Industrial Building Revenue
(Roll Form Corp. L.O.C. Bank One of Kentucky)
V.R.D.B. 4.300% 2,000 2,000
-----------
6,980
-----------
- --------------------------------------------------------------------------------

LOUISIANA (1.9%)
Lake Charles Harbor & Terminal District P.C.R.
(Conoco Inc. gtd by E.I. Dupont)

<PAGE>

Investment Portfolio/December 31, 1996
...............................................................................

V.R.D.B. 4.300% $ 2,600 $ 2,600
* Parish of St. Charles P.C.R. Series 1991
(Shell Oil Co.) V.R.D.B. 5.050% 100 100
-----------
2,700
-----------

.............................................................................
MARYLAND (3.3%)
* Ann Arundel County E.D.R. (Baltimore
Gas and Electric Company):
3.450% Mandatory Put 2/14/97 1,100 1,100
3.650% Mandatory Put 2/27/97 1,000 1,000
3.450% Mandatory Put 3/20/97 1,500 1,500
3.500% Mandatory Put 3/27/97 1,000 1,000
-----------
4,600
-----------

.............................................................................
MASSACHUSETTS (0.2%)
Massachusetts State Industrial Finance
Agency Revenue Series A (Babson College)
(MBIA Insured) 3.750% 10/01/97 250 250

.............................................................................
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. 4.250% 3,000 3,000

.............................................................................
MINNESOTA (0.7%)
* Minnesota Housing Finance Authority Single
Family Mortgage Series J 3.650% Mandatory
Put 12/11/97 1,000 1,000

.............................................................................
MISSISSIPPI (0.2%)
* Mississippi State University Educational Building
Corporation Revenue (MBIA Insured)
3.700% 8/01/97 350 350

.............................................................................
MISSOURI (3.7%)
* Jefferson County I.D.A. Revenue Series A
(GHF Holdings L.O.C. Bank One, Indianapolis)
V.R.D.B. 4.300% 4,185 4,185
St. Louis T.R.A.N.
4.750% 6/30/97 1,000 1,004
-----------
5,189
-----------

7
<PAGE>

..............................................................................
NORTH DAKOTA (0.7%)
* Mercer County Solid Waste Disposal Series
1993 U (gtd. by National Rural Utilities
Cooperative Finance Corp.) 3.550%
Optional Put 6/01/97 1,000 1,000

.............................................................................
OHIO (1.5%)
Columbus Ohio G.O. Series
V.R.D.B. 4.000% 200 200
Cuyahoga County Hospital Revenue
(University Hospital Health) (MBIA Insured)
6.500% 1/15/97 1,520 1,522
Ohio Enviromental Improvement Revenue
(U.S. Steel L.O.C. Pittsburgh National Bank)
V.R.D.B. 3.850% 400 400
-----------
2,122
-----------

.............................................................................
OKLAHOMA (1.1%)
Lawton Water Authority Sales Tax & Utility
System Revenue (AMBAC Insured)
5.375% 7/01/97 1,585 1,598

.............................................................................
OREGON (0.3%)
Eugene Oregon Electric Utilities Revenue
(FSA Insured) 4.000% 8/01/97 420 421

.............................................................................
PENNSYLVANIA (3.2%)
* Pennsylvania Housing Finance Authority Single
Family Mortgage Series 1991-31-A 6.300% 4/01/97 750 754
Philadelphia Redevelopment Authority Notes
Series 96 (Southwark Plaza Project)
(FGIC Insured) 3.850% 12/30/97 1,500 1,500
Quakertown General Authority Revenue Series A
(L.O.C. PNC Bank) V.R.D.B. 3.150% 2,200 2,200
-----------
4,454
-----------

8
<PAGE>

Investment Portfolio/December 31, 1996
------------------------------------------------------------------------------
SOUTH CAROLINA (2.7%)
Columbia Water and Sewer Revenue
6.000% 2/01/97 $ 825 $ 826
* South Carolina Economic Development Authority
Hospital Facilities Revenue (Specialty Equipment
Companies L.O.C. Barclays Bank, NY)
V.R.D.B. 4.300% 3,000 3,000
-----------
3,826
-----------

..............................................................................
TENNESSEE (2.8%)
* McMinn County Industrial Development Board
I.D.R. (Creative Fabrication Corp.)
(L.O.C. NBD Bank) V.R.D.B. 4.400% 4,000 4,000

..............................................................................
TEXAS (10.2%)
* Harris County Industrial Development Corp. I.D.R.
(Precision General Project L.O.C. Morgan
Guaranty) V.R.D.B. 4.300% 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. 4.250% 1,100 1,100
* Port Corpus Christi Industrial Development
Corp., Sewer & Solid Waste (Citgo Petroleum
Corp. Project Inc. L.O.C. Banque National
de Paris) V.R.D.B. 5.100% 300 300
* Robertson County Industrial Development Corp.
(Sanderson Farms Inc. Project) Series 1995
(L.O.C. Harris Trust and Savings Bank)
V.R.D.B. 4.300% 1,900 1,900
* San Antonio Airport Lease Special Project
Revenue (Hedrick Beechcraft, Inc. gtd. by
Raytheon Co.) V.R.D.B. 4.300% 4,000 4,000
Texas State T.R.A.N. Series 1996
4.750% 8/29/97 5,000 5,025
-----------
14,385
-----------

.............................................................................
VERMONT (1.8%)
* Vermont I.D.R. (Rye Gate Project L.O.C.
ABN AMRO Bank N.V.) V.R.D.B. 4.150% 2,500 2,500

9
<PAGE>

.............................................................................
WISCONSIN (12.5%)
* Carlton P.C.R. Series 1988 (Wisconsin
Power and Light) V.R.D.B. 4.250% 6,500 6,500
* Fond Du Lac I.D.R. (Brenner Tank Inc. L.O.C.
Bank One, Milwaukee) V.R.D.B. 4.300% 3,400 3,400
* Holland I.D.R. (White Clover Daily Inc. L.O.C.
Bank One, Milwaukee) V.R.D.B. 4.300% 2,760 2,760
* Kenosha I.D.R. (Monarch Plastics Inc. L.O.C.
Bank One, Milwaukee) V.R.D.B. 4.300% 2,260 2,260
* Oak Creek I.D.R. Series 1995 (McAdams Graphics
L.O.C. Bank One, Milwaukee) V.R.D.B. 4.300% 1,800 1,800
Slinger Wisconsin School District (FSA Insured)
6.400% 4/01/97 560 563
Wisconsin State Health Facility Authority Revenue
(Franciscan Health Care) (L.O.C. Toronto
Dominion Bank) V.R.D.B. 4.100% 300 300
-----------
17,583
-----------

TOTAL MUNICIPAL SECURITIES (102.2%)
(Amortized Cost $144,121) 144,121
-----------

OTHER ASSETS & LIABILITIES, NET- (-2.2%) (3,089)
------------------------------------------------------------------------------

NET ASSETS (100.0%) $141,032
-----------

* These securities are subject to Alternative Minimum Tax. At
December 31, 1996, these securities represented 69.8 percent of net
assets.

See notes to financial statements.

10
<PAGE>

SR&F MUNICIPAL MONEY MARKET
PORTFOLIO
STATEMENT OF ASSETS & LIABILITIES
DECEMBER 31, 1996 (UNAUDITED)

<TABLE>
<CAPTION>
(in thousands)
<S> <C> <C>
ASSETS
Investments at value (cost $144,121) $ 144,121

Receivable for:
Interest $ 997 997
--------------- ----------------
Total Assets 145,118

LIABILITIES
Payable for Investments purchased 4,051
Payable to Investment Adviser 2
Other liabilities 33
---------------
Total Liabilities 4,086
----------------

NET ASSETS applicable to investors' beneficial interest $ 141,032
----------------
</TABLE>

STATEMENT OF OPERATIONS
SIX MONTHS ENDED DECEMBER 31, 1996
(UNAUDITED)

<TABLE>
<CAPTION>
(in thousands)
<S> <C> <C>
INVESTMENT INCOME
Interest income $ 2,561

EXPENSES
Management fee 177
Custodian fees 7
Accounting fees 14
Audit & legal fees 5
Trustees fees 8
Other 8 219
---------------------------- ----------------

Net Investment Income $ 2,342
----------------
</TABLE>

See notes to financial statements.

11
<PAGE>

SR&F MUNICIPAL MONEY MARKET
PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
Six months Period
ended ended
(in thousands) December 31 June 30 (a)
----------- -----------
INCREASE (DECREASE) IN NET ASSETS 1996 1996
Operations:
Net investment income $ 2,342 $ 4,054
--------------- ----------------

Transactions in investors'
beneficial interest Contributions 59,224 241,616
Withdrawals (63,462) (102,742)
--------------- ----------------
Net transactions in investors'
beneficial interest (4,238) 138,874
--------------- ----------------
Total Increase (Decrease) (1,896) 142,928

NET ASSETS
Beginning of period 142,928 -
--------------- ----------------
End of period $ 141,032 $ 142,928
--------------- ----------------

FINANCIAL HIGHLIGHTS

(Unaudited)
Six months Period
ended ended
December 31 June 30 (a)
----------- -----------
RATIOS TO AVERAGE NET ASSETS 1996 1996

Expenses (b) 0.31% 0.30%
Net investment income(b) 3.31% 3.50%

(a) The Portfolio commenced operations September 28, 1995.
(b) Annualized.

See notes to financial statements.

12
<PAGE>

SR&F MUNICIPAL MONEY MARKET FUND
PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1996 (UNAUDITED)

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 allocates net asset value, income and expenses based on respective
percentage ownership of each investor on a daily basis. At December 31, 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 December 31, 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.

OTHER INFORMATION:
Realized gains or losses from sales of securities are determined on the specific
identified cost basis. Securities purchased on a when-issued basis may be
settled a month or more after the transaction date. These securities are subject
to market fluctuation during this period. The

13
<PAGE>

Notes to Financial Statements/December 31, 1996
- -------------------------------------------------------------------------------

NOTE 2. OTHER INFORMATION CONT.
...............................................................................
Portfolio did not have any when-issued or delayed delivery purchase commitments
as of December 31, 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 or agency obligations and set aside to pay off the original issue at
the first call date or maturity). The Portfolio's investments included certain
municipal securities that are insured by private insurers who guarantee the
payment of principal and interest 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 December 31, 1996,
51.0 percent 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 transfer agent fees of the Portfolio are paid to SteinRoe Services, Inc. an
indirect, majority-owned subsidiary of Liberty Mutual Insurance Company.

The Adviser provides certain accounting services to the Portfolio. For the
period ended December 31, 1996, the Portfolio incurred charges of $14 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 December 31, 1996 was $8. 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 December 31, 1996.

14
<PAGE>

COLONIAL MUNICIPAL MONEY MARKET FUND

STATEMENT OF ASSETS & LIABILITIES
December 31, 1996 (Unaudited)

(in thousands except for per share amounts)
ASSETS
Investment in SR&F Municipal Money Market
Portfolio $ 20,461

Receivable for:
Fund shares sold $ 1,498
Expense reimbursement due
from Adviser 10
Other 10 1,518
----------- -----------
Total Assets 21,979

LIABILITIES
Payable for:
Fund shares repurchased 55
Distributions 53
Accrued:
Deferred Trustees fees 1
Other 1
-----------
Total Liabilities 110
-----------

NET ASSETS $ 21,869
-----------

Net asset value:
Class A ($20,283/20,285) $1.00
-----------

Class B ($1,586/1,586) $1.00(a)
-----------

COMPOSITION OF NET ASSETS
Capital paid in $ 21,870
Accumulated net realized loss (1)
-----------
$ 21,869
-----------

(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 (UNAUDITED)
For the Six Months Ended December 31, 1996

(in thousands)
INVESTMENT INCOME
Interest income from
SR&F Municipal Money Market Portfolio $ 369
Expenses allocated from
SR&F Municipal Money Market Portfolio (32)
-----------
337

EXPENSES
Administration fee $ 24
Service fee - Class B 2
Distribution fee - Class B 4
Transfer agent 24
Bookkeeping fee 9
Trustees fee 6
Audit fee 12
Legal fee 6
Registration fee 15
Reports to shareholders 6
Other 2
-----------
110
Fees and expenses waived or borne
by the Adviser/Administrator (60) 50
----------- -----------
Net Investment Income $ 287
-----------

See notes to financial statements.

16
<PAGE>

COLONIAL MUNICIPAL MONEY MARKET FUND

STATEMENT OF CHANGES IN NET ASSETS

(Unaudited) Year
Six months ended ended
(in thousands) December 31 June 30 (a)
----------- -----------
INCREASE (DECREASE) IN 1996 1996
NET ASSETS
Operations:
Net investment income $ 287 $ 677
----------- -----------
Distributions:
From net investment income - Class A (269) (628)
From net investment income - Class B (18) (49)
----------- -----------
-- --
Fund Share Transactions:
Receipts for shares sold - Class A 27,554 58,417
Value of distributions reinvested - Class A 242 550
Cost of shares repurchased - Class A (27,189) (63,966)
----------- -----------
607 (4,999)
----------- -----------
6,829 3,838
Receipts for shares sold - Class B
Value of distributions reinvested - Class B 11 36
Cost of shares repurchased - Class B (6,489) (5,750)
----------- -----------
351 (1,876)
----------- -----------

Net Increase (Decrease) from Fund
Share Transactions 958 (6,875)
----------- -----------
Total Increase (Decrease) 958 (6,875)
NET ASSETS
Beginning of period 20,911 27,786
----------- -----------
End of period (net of undistributed
net investment income of none and
none, respectively) $ 21,869 $ 20,911
----------- -----------
NUMBER OF FUND SHARES
Sold - Class A 27,554 58,417
Issued for distributions reinvested - Class A 242 550
Repurchased - Class A (27,189) (63,966)
----------- -----------
607 (4,999)
----------- -----------
Sold - Class B 6,829 3,839
Issued for distributions reinvested - Class B 11 36
Repurchased - Class B (6,489) (5,750)
----------- -----------
351 (1,875)
----------- -----------

See notes to financial statements.

17
<PAGE>

COLONIAL MUNICIPAL MONEY MARKET FUND

NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1996 (UNAUDITED)

NOTE 1. INTERIM FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------

In the opinion of the Administrator of Colonial Municipal Money Market Fund (the
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, 1996, 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 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 December 31, 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 consistently 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 2 of the Portfolio's Notes to Financial Statements which are
included elsewhere in this report.

18
<PAGE>

Notes to Financial Statements/December 31, 1996
- --------------------------------------------------------------------------------
NOTE 2. ACCOUNTING POLICIES - CONT.
- -----------------------------------------------------------
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.

Distributions to shareholders: The Fund declares and records distributions daily
and pays monthly.

NOTE 3. FEES AND COMPENSATION PAID TO AFFILIATES
- --------------------------------------------------------------------------------
Administrator: Colonial Management Associates, Inc. (the Administrator)
provides 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 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, 1996, the
Fund has been advised that the Distributor received contingent deferred sales
charges (CDSC) of $5,849 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.

19
<PAGE>

Notes to Financial Statements/December 31, 1996
- --------------------------------------------------------------------------------
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.

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.

20
<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>
(Unaudited)
Six months ended Year ended
December 31 June 30(b)
-------------------------- -------------------------
1996 1996
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)(c) 0.015 0.011 0.030 0.020
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.015) (0.011) (0.030) (0.020)
-------- -------- ------- --------
Net asset value -
End of period $ 1.000 $ 1.000 $ 1.000 $ 1.000
-------- -------- ------- --------
Total return (d)(e) 1.46%(g) 1.12%(g) 3.04% 2.02%
-------- -------- ------- --------

RATIOS TO AVERAGE NET ASSETS
Expenses (c) 0.75%(f) 1.75%(f) 0.75% 1.75%
Fees and expenses waived or
borne by the Adviser/
Administrator 0.60%(f) 0.60%(f) 0.84% 0.84%
Net investment income 2.91%(f) 1.91%(f) 3.00% 2.00%
Net assets at end
of period (000) $20,283 $ 1,586 $19,676 $ 1,235

(a) Net of fees and expenses waived or borne
by the Adviser/Administrator which
amounted to $ 0.003 $ 0.003 $ 0.008 $ 0.008
</TABLE>
(b) Effective September 28, 1995, SR&F became the investment Adviser of the
portfolio.
(c) 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.
(d) Total return at net asset value assuming all distributions reinvested and no
contingent deferred sales charge.
(e) Had the Adviser/Administrator not waived or reimbursed a portion of expenses
total return would have been reduced.
(f) Annualized.
(g) Not Annualized.

21
<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>
Period ended Year ended
June 30(b) November 30
----------------------------- ------------------------------
1995 1994
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) 0.018 0.011 0.020 0.010
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.018) (0.011) (0.020) (0.010)
-------- -------- -------- --------
Net asset value -
End of period $ 1.000 $ 1.000 $ 1.000 $ 1.000
-------- -------- -------- --------
Total return (c)(d) 1.80%(e) 1.20%(e) 2.00% 1.01%
-------- -------- -------- --------

RATIOS TO AVERAGE NET ASSETS
Expenses (c) 0.75%(f) 1.75%(f) 0.60% 1.60%
Fees and expenses waived or
borne by the Adviser/
Administrator 0.36%(f) 0.36%(f) 0.59% 0.59%
Net investment income 3.05%(f) 2.05%(f) 2.05% 1.05%
Net assets at end
of period (000) $24,675 $ 3,111 $ 28,808 $ 3,867

(a) Net of fees and expenses waived or
borne by the Adviser which amounted to $ 0.002 $ 0.002 $ 0.006 $ 0.006
</TABLE>
(b) The fund changed its fiscal year end from November 30 to June 30 in 1995.
the Fund.
(c) Total return at net asset value assuming all distributions reinvested and no
contingent deferred sales charge.
(d) Had the Adviser/Administrator not waived or reimbursed a portion of expenses
total return would have been reduced.
(e) Not Annualized.
(f) Annualized.
(g) Class B shares were initially offered on May 5, 1992, Per share amounts
reflect activity from that date.

22
<PAGE>

COLONIAL MUNICIPAL MONEY MARKET FUND
FINANCIAL HIGHLIGHTS - continued

<TABLE>
<CAPTION>
Year ended November 30
-----------------------------------------------------------
1993 1992 1991
Class A Class B Class A Class B (g) Class A
-------- ------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value -
Beginning of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
-------- ------- -------- -------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (a) 0.017 0.009 0.024 0.007 0.042
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.017) (0.009) (0.024) (0.007) (0.042)
-------- ------- -------- -------- --------
Net asset value -
End of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
-------- ------- -------- -------- --------
Total return (c)(d) 1.73% 0.93% 2.44% 0.68% 4.26%
-------- ------- -------- -------- --------

RATIOS TO AVERAGE NET ASSETS
Expenses (c) 0.75% 1.75% 0.75% 1.75% 0.75%
Fees and expenses waived or
borne by the Adviser/
Administrator 0.50% 0.50% 0.61% 0.79% 0.53%
Net investment income 1.69% 0.69% 2.42% 1.42% 4.23%
Net assets at end
of period (000) $ 18,618 $ 908 $ 34,956 $ 135 $ 28,355

(a) Net of fees and expenses waived or
borne by the Adviser which amounted to $ 0.005 $ 0.005 $ 0.006 $ 0.003 $ 0.005
</TABLE>
(b) The fund changed its fiscal year end from November 30 to June 30 in 1995.
the Fund.
(c) Total return at net asset value assuming all distributions reinvested and no
contingent deferred sales charge.
(d) Had the Adviser/Administrator not waived or reimbursed a portion of expenses
total return would have been reduced.
(e) Not Annualized.
(f) Annualized.
(g) Class B shares were initially offered on May 5, 1992, Per share amounts
reflect activity from that date.

23
<PAGE>

HOW TO REACH COLONIAL
BY PHONE OR BY MAIL

By Telephone

Colonial Customer Connection - 1-800-345-6611
For 24-hour account information, call from your touch-tone phone. (Rotary
callers will be automatically connected to a representative during business
hours.) A recorded message will guide you through the menu:

For fund prices, dividends, and capital gains information press 1

For account information press 2

To speak to a Colonial representative press 3

For yield and total return information press 4

For duplicate statements or new supply of checks press 5

To order duplicate tax forms and year-end statements press 6
(February through May)

To review your options at any time during your call press *

To speak with a shareholder services representative about your account, call
Monday to Friday, 8:00 am to 8:00 pm ET, and Saturdays from February through
mid-April, 10:00 am to 2:00 pm ET.

Colonial Telephone Transaction Department - 1-800-422-3737
To purchase, exchange, or sell shares by telephone, call Monday to Friday,
9:00 am to 7:00 pm ET. Transactions received after the close of the New York
Stock Exchange will receive the next business day's closing price.

Literature - 1-800-426-3750
To request literature on any Colonial fund, call Monday to Friday, 8:30 am to
6:30 pm ET.

By Mail

Colonial Investors Service Center, Inc.
P.O. Box 1722
Boston, MA 02105-1722

24
<PAGE>

SHAREHOLDER COMMUNICATIONS
TO KEEP YOU INFORMED

To make recordkeeping easy and keep you up-to-date on the performance of your
investments, you can expect to receive the following information about your
Colonial account:

Transaction Confirmations: Each time you make a purchase, sale, or exchange,
you receive a confirmation statement within just a few days.

Quarterly Statements: Every three months, if any transactions are made that
affect your share balance, this statement reports on your account activity
during the quarter (including any reinvestment of dividends). This statement
also provides year-to-date information.

Colonial Shareholder News: Mailed with your quarterly account statements,
this newsletter highlights timely investment strategies, portfolio manager
commentary, and shareholder service updates.

Tax Forms and Year-End Tax Guide: Easy-to-use forms and timely information
are designed to make tax reporting simpler. (Usually mailed in January.)

Average Cost Basis Statements: If you sold or exchanged shares during the
year, this statement may help you calculate your gain/loss for tax purposes.
(Usually mailed in February.)

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
on most funds; $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.

Easy Access to Your Money*: Make withdrawals from your account by phone, by
mail or, for certain funds, by check.

One-Year Reinstatement Privilege: If you need access to your money, but then
choose to return it to Colonial within one year, you can reinvest in any
Colonial fund of the same share class without any penalty or sales charge.

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. Dividends and capital must be
reinvested.

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
Colonial at 1-800-426-3750 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>

[COLONIAL LOGO] COLONIAL
Mutual Funds
Mutual Funds for
Planned Portfolios

TRUSTEES

Robert J. Birnbaum
Retired (formerly Special Counsel, Dechert, Price & Rhoads; President and
Chief Operating Officer, New York Stock Exchange, Inc.)

Tom Bleasdale
Retired (formerly Chairman of the Board and Chief Executive Officer, Shore
Bank & Trust Company)

Lora S. Collins
Attorney (formerly Attorney, Kramer, Levin, Naftalis, Nessen, Kamin & Frankel)

James E. Grinnell
Private Investor (formerly Senior Vice President-Operations, The Rockport
Company)

William D. Ireland, Jr.
Retired (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
Partner, Development Capital, L.L.C. (formerly Dean, College of Business and
Management, University of Maryland; 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 Copy Rights 1997
A Liberty Financial Company (NYSE: L)
One Financial Center, Boston, Massachusetts 02111-2621, 617-426-3750
TM-03/224D-1296 M (2/97)

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