<PAGE>
[Graphic Omitted]
Seeking new opportunities for investors in a
more competitive utilities environment.
- --------------------------------------------------------------------------------
COLONIAL UTILITIES FUND Semiannual report
- --------------------------------------------------------------------------------
May 31, 1998
-----------------------------------
Not FDIC May Lose Value
Insured No Bank Guarantee
-----------------------------------
<PAGE>
- --------------------------------------------------------------------------------
COLONIAL UTILITIES FUND
DECEMBER 1, 1997 - MAY 31, 1998
INVESTMENT OBJECTIVE: Colonial Utilities Fund seeks current income and long-term
growth.
PORTFOLIO MANAGER COMMENTARY: "The beginning of this period was characterized by
declining interest rates and lingering concerns over weak Asian stock markets.
In this environment, investors preferred quality domestic issues, such as U.S.
utility stocks. Their prices benefited as a result. We used this early strength
to reduce domestic telephone exposure and added selected foreign
telecommunication stocks. Our new foreign holdings were focused in Europe, where
we see significant growth potential."
-- John Lennon & Richard Petrino
COLONIAL UTILITIES FUND PERFORMANCE
CLASS A CLASS B CLASS C
Inception dates 3/4/92(1) 5/5/92 8/1/97
- ------------------------------------------------------------------------------
Distributions declared per share $0.284 $0.212 $0.212
- ------------------------------------------------------------------------------
30-day SEC yields on 5/31/98(2) 2.39% 1.75% 1.75%
- ------------------------------------------------------------------------------
Six-month total returns, assuming 11.07% 10.67% 10.67%
reinvestment of all distributions and
no sales charge or contingent
deferred sales charge (CDSC)
- ------------------------------------------------------------------------------
Net asset value per share on 5/31/98 $19.77 $19.77 $19.77
TOP FIVE HOLDINGS SECTOR BREAKDOWN
(as of 5/31/98) (as of 5/31/98)
- ----------------------------------- -----------------------------------
1. Bell Atlantic Corp. ...... 4.53% Common & Convertible Stocks
2. FPL Group, Inc. .......... 4.39% Electric ................... 37.9%
3. Williams Companies, Inc. . 4.32% Telephone .................. 39.2%
4. BellSouth Corp. .......... 4.30% Natural Gas ................ 13.3%
5. GTE Corp. ................ 4.25% Non-utility Stocks ........... 2.2%
Preferred Stocks ............. 6.8%
Net Cash & Equivalents ....... 0.6%
(1) Date of adoption of the Fund's current investment policies.
(2) Reflects the portfolio's earning power, net of expenses, expressed as an
annualized percentage of the public offering price per share at the end of
the period.
Holdings and sector breakdowns are calculated as a percent of total net
assets. Because the Fund is actively managed, there can be no guarantee the
Fund will continue to hold these securities or maintain these sector
weightings in the future. Industry sectors in the following financial
statements are based upon the standard industrial classification (SIC)
published by the U.S. Office of Management and Budget. The sector
classifications used on this page are based upon Colonial's defined criteria
used in the investment process.
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<PAGE>
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PRESIDENT'S MESSAGE
TO FUND SHAREHOLDERS
----------------------------
[Photo of Stephen E. Gibson]
----------------------------
Harold Cogger retired in June 1998 as president of Colonial Utilities Fund's
Board of Trustees. I would like to take this opportunity to thank him for his
guidance over the past few years and wish him well. As the new president of the
Fund, I am pleased to present the semiannual report for Colonial Utilities Fund
for the six-month period ended May 31, 1998.
Several economic factors influenced the utilities market during the last six
months:
|_| Events in the Pacific Rim continued to dominate headlines early in the
period. The economic crisis in Southeast Asia negatively impacted many stock
markets worldwide. In this environment, investors preferred quality stocks
like U.S. utilities, which offered relative stability and low exposure to
volatile foreign economies. U.S. utility stock prices rose as a result.
|_| Long-term Treasury rates dropped modestly from the beginning to the end of
the period. Because utility stock prices generally rise as interest rates
fall, your Fund and utility stocks as a whole benefited from this trend.
|_| Utility stock prices were positively affected by expectations of a
resurgence in merger activity.
Colonial Utilities Fund continues to provide opportunities for current income
and potential for long-term growth to investors.
The Portfolio Manager's Report on the following pages will provide you with
specific information on your Fund's performance and the market in which your
Fund invests. Thank you for choosing Colonial Utilities Fund and for giving us
the opportunity to serve your investment needs.
Respectfully,
/s/ Stephen E. Gibson
Stephen E. Gibson
President
July 10, 1998
Because market and economic conditions change, there can be no assurance that
the trends discussed above or on the following pages will continue.
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<PAGE>
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PORTFOLIO MANAGEMENT REPORT
JOHN LENNON is vice president of Colonial Management Associates, Inc. and lead
portfolio manager of Colonial Utilities Fund. RICHARD PETRINO is assistant vice
president of Colonial Management Associates, Inc. and associate portfolio
manager of the Fund.
YOUR FUND PROVIDED A SOLID TOTAL RETURN AS ALL UTILITY SECTORS ADVANCED
For the six-month period, the Fund provided a total return of 11.07% for Class A
shares, based on net asset value. This compares favorably to the Standard &
Poor's (S&P) Utility Index which returned 10.83%(1) over the same period.
Stronger-than-anticipated economic activity in the first quarter of 1998
resulted in some interest rate volatility. However, over the course of the
entire period, interest rates declined. This created a favorable environment for
utility stocks. Announcements of utility mergers, both in and across industry
lines, were slow during the period. Despite this, expectations of a resurgence
in such activity continued to buoy utility stock prices. All sectors of the
utility market rose, with natural gas stocks leading the way.
TWO NATURAL GAS STOCKS PROVIDE STRONG PERFORMANCE
The S&P Natural Gas Index posted a total return of 14.72% for the six-month
period. Williams Companies, the Fund's third largest holding (4.32% of total net
assets), and Enron (1.99% of total net assets) both posted impressive gains.
These companies, which account for a significant portion of the index, were
rewarded by investors for their respective non-traditional activities in
telecommunications and energy trading.
TELECOMMUNICATIONS SECTOR OFFERED MANY GROWTH OPPORTUNITIES
Telephone stocks achieved a total return of 11.59% during the period, as
measured by the S&P Telephone Index. For the first time in the Fund's history,
telecommunications common stocks (39% of the portfolio) represented a larger
portion of the Fund than electric common stocks (38% of the portfolio). Five
years ago, the electric utility sector represented nearly 85% of the Fund. This
shift illustrates our response to the changing utility marketplace. In addition,
telephone companies have broadened their product offerings, and have entered
into partnerships and mergers in an attempt to capture the end customer. We
believe the telecommunications sector offers significant growth potential based
on the explosive demand for voice, data and Internet services.
ELECTRIC UTILITY STOCKS BENEFITED FROM INVESTORS' SEARCH FOR QUALITY
Electric stocks, up 9.78% during the period, as measured by the S&P Electric
Index, benefited from investors' flight to quality. Their large size, domestic
focus and high degree of liquidity made these stocks attractive to investors
seeking conservative growth. Several new states have joined California,
Massachusetts and New York, passing legislation that will deregulate utilities.
Companies are continuing to restructure to meet the challenges of a more
competitive marketplace. In this environment, we expect to see a resurgence of
merger activity.
FOREIGN TELECOMMUNICATIONS COMPANIES LOOKED ATTRACTIVE
We took profits in a strong domestic utility market early in the period and
increased the Fund's holdings in foreign utility stocks. We believe there are
substantial growth opportunities overseas, especially in the telecommunications
sector. As of May 31, foreign utilities represented over 10% of net assets -- up
from 3.5% on November 30, 1997.
We added telephone holdings in the United Kingdom and Continental Europe, South
and Latin America, and Australia -- all regions experiencing strong growth in
consumer demand. Our largest commitment is in Europe, primarily in developed,
relatively stable countries. We acquired Telefonica de Espana (Spain), Telecom
Italia SPA (Italy) and Energis PLC. (U.K.), which respectively represented
2.30%, 2.25% and 0.96% of period end total net assets.
NEW MANAGERS ADDED
Effective July 1, Ophelia Barsketis and Deborah Jansen were added as co-managers
of the Fund. Ophelia and Deborah also co-manage Colonial Global Utilities Fund.
We welcome these two managers and believe their years of experience will bring
additional depth to our management team in an increasingly complex utility
marketplace.
FAVORABLE INVESTMENT ENVIRONMENT FOR UTILITIES EXPECTED TO CONTINUE
We believe that worldwide demand for utility services will continue to grow.
Continued low inflation resulting in low interest rates would both be positives
for utility stock prices. In response to the deregulation of U.S. utility
markets, companies will continue to restructure their operations. Also, we
expect to see more mergers and alliances as companies seek to expand their
geographic presence in an open and more competitive marketplace. The effects of
these mergers, both within and across traditional industry sectors, should be a
plus for utility stock prices overall. In addition to the favorable outlook for
domestic stocks, we believe that foreign utility markets will continue to offer
good investment opportunities. Firms within those markets, both in developed and
developing countries, should continue to expand in their quest to meet the
growing demand for power and telecommunications services.
(1) For the 1, 5 and 10 year periods ended 5/31/98, the average annual total
returns for the S&P Utility Index were 29.49%, 12.69% and 14.31%,
respectively.
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<PAGE>
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COLONIAL UTILITIES FUND INVESTMENT PERFORMANCE VS.
THE DOW JONES UTILITIES AVERAGE AND THE STANDARD & POOR'S 500 INDEX
Change in Value of $10,000 from 3/31/92 - 5/31/98
Based on NAV and POP for Class A Shares
STANDARD & DOW JONES
POOR'S 500 NAV POP UTILITIES
---------- --- --- ---------
Mar-92 $10,000 $10,000 $10,000 $10,000
Apr-92 10,293 10,204 9,720 10,287
May-92 10,344 10,443 9,947 10,467
June-92 10,190 10,532 10,032 10,436
July-92 10,606 11,084 10,558 11,169
Aug-92 10,389 11,065 10,539 10,912
Sep-92 10,511 11,131 10,602 11,066
Oct-92 10,547 11,137 10,608 11,071
Nov-92 10,905 11,126 10,598 11,061
Dec-92 11,039 11,407 10,865 11,255
Jan-93 11,131 11,618 11,067 11,562
Feb-93 11,283 12,213 11,633 12,325
Mar-93 11,521 12,306 11,722 12,472
Apr-93 11,243 12,278 11,695 12,385
May-93 11,543 12,258 11,676 12,403
June-93 11,576 12,608 12,009 12,811
July-93 11,530 12,835 12,225 13,116
Aug-93 11,966 13,161 12,536 13,524
Sep-93 11,874 13,043 12,424 13,247
Oct-93 12,120 12,856 12,246 12,793
Nov-93 12,004 12,261 11,679 12,049
Dec-93 12,149 12,468 11,876 12,338
Jan-94 12,562 12,266 11,683 12,181
Feb-94 12,221 11,697 11,142 11,416
Mar-94 11,690 11,382 10,841 10,722
Apr-94 11,839 11,635 11,082 10,911
May-94 12,033 11,142 10,612 10,263
June-94 11,738 10,887 10,370 9,846
July-94 12,124 11,290 10,754 10,380
Aug-94 12,619 11,324 10,787 10,616
Sep-94 12,311 11,039 10,515 10,262
Oct-94 12,587 11,186 10,655 10,279
Nov-94 12,129 11,153 10,623 10,259
Dec-94 12,309 11,182 10,651 10,452
Jan-95 12,628 11,912 11,346 11,142
Feb-95 13,120 11,983 11,414 11,265
Mar-95 13,506 11,888 11,323 10,975
Apr-95 13,904 12,132 11,556 11,405
May-95 14,458 12,679 12,077 12,188
June-95 14,794 12,721 12,117 12,014
July-95 15,284 12,802 12,194 12,149
Aug-95 15,322 13,100 12,477 12,121
Sep-95 15,968 13,824 13,167 12,915
Oct-95 15,911 14,124 13,453 12,960
Nov-95 16,609 14,375 13,692 13,128
Dec-95 16,929 15,068 14,353 13,795
Jan-96 17,505 15,359 14,630 14,161
Feb-96 17,667 14,986 14,274 13,530
Mar-96 17,838 14,835 14,130 13,203
Apr-96 18,100 14,673 13,976 13,070
May-96 18,566 14,694 13,996 13,140
June-96 18,637 15,246 14,522 13,876
July-96 17,814 14,651 13,955 12,952
Aug-96 18,190 14,723 14,024 13,615
Sep-96 19,213 14,753 14,052 13,845
Oct-96 19,743 15,352 14,623 14,509
Nov-96 21,234 15,851 15,098 15,163
Dec-96 20,813 15,975 15,217 15,050
Jan-97 22,113 16,311 15,536 15,074
Feb-97 22,287 16,594 15,806 14,815
Mar-97 21,373 15,974 15,216 14,325
Apr-97 22,647 16,100 15,335 14,217
May-97 24,032 16,651 15,860 14,675
June-97 25,100 17,139 16,325 15,044
July-97 27,097 17,384 16,558 15,650
Aug-97 25,580 16,987 16,180 15,493
Sep-97 26,980 17,876 17,027 15,986
Oct-97 26,080 17,963 17,109 16,301
Nov-97 27,287 19,538 18,610 17,472
Dec-97 27,755 20,490 19,516 18,511
Jan-98 28,062 20,467 19,495 17,874
Feb-98 30,084 20,954 19,959 18,533
Mar-98 31,624 22,651 21,575 19,567
Apr-98 31,947 22,024 20,978 19,501
May-98 31,399 21,701 20,670 19,603
VALUE OF A $10,000 INVESTMENT MADE ON 3/31/92
As of 5/31/98
- --------------------------------------------------------------------------------
CLASS A SHARES CLASS B SHARES CLASS C SHARES
NAV POP NAV w/CDSC NAV w/CDSC
- --------------------------------------------------------------------------------
Since inception $21,701 $20,670 $20,756 $20,756 $21,570 $21,570
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS
As of 5/31/98
- --------------------------------------------------------------------------------
CLASS A SHARES(1) CLASS B SHARES CLASS C SHARES
INCEPTION 3/4/92 5/5/92 8/1/97
NAV POP NAV w/CDSC NAV w/CDSC
- --------------------------------------------------------------------------------
1 year 30.33% 24.14% 29.39% 24.39% 29.54% 28.54%
- --------------------------------------------------------------------------------
5 years 12.10 11.02 11.28 11.02 11.97 11.97
- --------------------------------------------------------------------------------
10 years 13.19 12.64 12.69 12.69 13.12 13.12
- --------------------------------------------------------------------------------
(1) Change in investment policies.
Past performance cannot predict future results. Returns and value of an
investment will vary, resulting in a gain or loss on sale. All results shown
assume reinvestment of distributions. Net asset value (NAV) returns do not
include sales charges or contingent deferred sales charges (CDSC). Public
offering price (POP) returns include the maximum sales charge of 4.75%. The CDSC
returns reflect the maximum charges of 5% for one year and 2% for five years for
Class B shares, and 1% for one year for Class C shares. Performance for
different share classes will vary based on differences in sales charges and fees
associated with each class.
The Dow Jones Utilities Average and the Standard & Poor's 500 Index are two
unmanaged indexes that track the performance of utility stocks and U.S. stocks,
respectively. Unlike mutual funds, indexes are not investments, do not incur
fees or expenses and it is not possible to invest in an index.
Class B and Class C share (newer class shares) performance information includes
returns of the Fund's Class A shares (the oldest existing fund class) for
periods prior to the inception dates of the newer class shares. These Class A
share returns are not restated to reflect any expense differential (e.g., Rule
12b-1 fees) between Class A shares and the newer class shares. Had the expense
differential been reflected, the returns for periods prior to the inception date
of the newer class shares would have been lower.
- --------------------------------------------------------------------------------
<PAGE>
INVESTMENT PORTFOLIO
MAY 31, 1998 (UNAUDITED, IN THOUSANDS)
COMMON STOCKS & CONVERTIBLES - 92.6% COUNTRY SHARES VALUE
- --------------------------------------------------------------------------------
FINANCE, INSURANCE & REAL ESTATE - 0.9%
DEPOSITORY INSTITUTIONS
First Union Corp. 175 $ 9,680
----------
................................................................................
MANUFACTURING - 1.3%
COMMUNICATIONS EQUIPMENT - 1.2%
Harris Corp. 50 2,416
Lucent Technologies, Inc. 150 10,641
----------
13,057
----------
MACHINERY & COMPUTER EQUIPMENT - 0.1%
Timken Co. 25 941
----------
................................................................................
MINING & ENERGY - 2.0%
OIL & GAS FIELD SERVICES
Enron Corp. 418 20,930
----------
................................................................................
TRANSPORTATION, COMMUNICATIONS, ELECTRIC,
GAS & SANITARY SERVICES - 88.4%
ELECTRIC SERVICES - 37.9%
American Electric Power Co., Inc. 125 5,672
Boston Edison Co. 100 4,056
Cinergy Corp. 950 30,697
DPL, Inc. 2000 34,500
DTE Energy Co. 600 23,737
Duke Energy Corp. 400 23,050
Eastern Utilities Associates 125 3,169
Edison International 900 26,550
Entergy Corp. 150 3,947
FirstEnergy Corp. 200 5,937
FPL Group, Inc. 750 46,078
GPU, Inc. 700 26,950
Houston Industries, Inc. 774 22,156
Interstate Energy Corp. 285 8,568
Kansas City Power & Light Co. 600 17,250
Long Island Lighting Co. 250 7,453
MidAmerican Energy Co. 100 2,081
New Century Energies, Inc. 550 25,300
PacifiCorp 500 11,531
Public Service Enterprise Group, Inc. 100 3,306
Rochester Gas & Electric Corp. 50 1,537
Sierra Pacific Resources 275 9,436
Southern Co. 600 15,938
Texas Utilities Co. 700 27,650
Unicom Corp. 200 6,875
Utilicorp United, Inc. 150 5,334
----------
398,758
----------
GAS SERVICES - 11.3%
MCN Energy Group, Inc. 825 29,700
MCN Energy Group, Inc., PRIDES, 8.75% 35 1,083
MDU Resources Group, Inc. 175 5,830
Pacific Enterprises 400 15,225
Peoples Energy Corp. 150 5,531
UGI Corp. 400 10,125
Williams Cos., Inc. 1400 45,413
Williams Cos., Inc., $3.50 Convertible Preferred 37 5,670
----------
118,577
----------
TELECOMMUNICATION - 39.2%
Ameritech Corp. 940 39,891
Bell Atlantic Corp. 520 47,645
BellSouth Corp. 700 45,150
Cincinnati Bell, Inc. 350 11,134
Citizens Utilities Co.,
5% Convertible Preferred 100 4,900
Energis PLC (a) UK 140 10,115
Frontier Corp. 350 10,653
GTE Corp. 765 44,609
Hellenic Telecommunication
Organization S.A Gr 500 14,667
MATAV ADR Hg 250 7,000
SBC Communications, Inc. 1070 41,596
Telecom Italia SPA ADR It 315 23,595
Telecomunicacoes Brasileiras SA ADR Bz 140 14,928
Telefonica de Espana ADR Sp 180 24,210
Telefonos de Mexico SA Mx 300 14,231
Telstra Corp. Part Paid ADS Au 34 1,584
US West Communications Group 650 32,988
Worldcom, Inc. (a) 500 22,750
----------
411,646
----------
TOTAL COMMON STOCKS & CONVERTIBLES
(cost of $676,437) 973,589
----------
PREFERRED STOCKS - 5.9%
- --------------------------------------------------------------------------------
TRANSPORTATION, COMMUNICATIONS, ELECTRIC,
GAS & SANITARY SERVICES - 5.9%
ELECTRIC SERVICES - 4.9%
Arizona Public Service Co., $1.8125 Series W 180 4,567
Baltimore Gas & Electric Co.,
6.75%, Series 1987 25 2,619
Boston Edison Co., 7.75% 100 2,512
Commonwealth Edison Co., 7.24% 52 5,320
Detroit Edison Co., 7.74% 100 2,520
Entergy Arkansas, Inc.:
7.80% 10 1,033
7.88% 9 917
Entergy Gulf States Utilities:
7.56% 18 1,923
8.80% 13 1,344
Entergy Louisiana, Inc., 8.00% 30 791
Jersey Central Power & Light Co.,
7.88%, Series E 15 1,545
Northern Indiana Public Service Co., 7.44% 9 909
Ohio Edison Co., 7.75% 240 6,090
Pennsylvania Power Co., 7.75% 15 1,500
TU Electric Capital, TOPRS, 8.25% 680 17,553
----------
51,143
----------
GAS SERVICES - 1.0%
Enron Corp., MIPS, 8.00% 400 10,000
Pacific Enterprises, $4.50 4 336
----------
10,336
----------
TOTAL PREFERRED STOCKS (cost of $60,364) 61,479
----------
ADJUSTABLE RATE PREFERRED STOCKS - 0.9%
- --------------------------------------------------------------------------------
TRANSPORTATION, COMMUNICATIONS, ELECTRIC,
GAS & SANITARY SERVICES - 0.9%
ELECTRIC SERVICES
Cleveland Electric Illuminating Co., Series L, 7 65 6,585
Entergy Gulf States Utilities, Series A, 7.00% 17 1,664
Toledo Edison Co., Series A, 7.00% 40 1,000
----------
TOTAL ADJUSTABLE RATE PREFERRED STOCKS 9,249
(cost of $8,680) ----------
TOTAL INVESTMENTS - 99.4% (cost of $745,481)(b) 1,044,317
----------
SHORT-TERM OBLIGATIONS - 0.6% PAR
- --------------------------------------------------------------------------------
Repurchase agreement with ABN AMRO Chicago Corp.,
dated 05/29/98, due 06/01/98 at 5.58%
collateralized by U.S. Treasury notes and bills
with various maturities to 2027, market value
$6,491 (repurchase proceeds $6,224) $ 6,221 6,221
----------
OTHER ASSETS & LIABILITIES, NET - 0.0% $ 255
- --------------------------------------------------------------------------------
NET ASSETS - 100.0% $1,050,793
==========
NOTES TO INVESTMENT PORTFOLIO:
- --------------------------------------------------------------------------------
(a) Non-income producing.
(b) Cost for federal income tax purposes is the same.
Summary of Securities by Country Country Value % of Total
- --------------------------------------------------------------------------------
United States $ 933,987 89.4
Italy It 23,595 2.3
Spain Sp 24,210 2.2
Brazil Bz 14,928 1.4
Greece Gr 14,667 1.4
Mexico Mx 14,231 1.4
United Kingdom UK 10,115 1.0
Hungary Hg 7,000 0.7
Australia Au 1,584 0.2
---------- ----------
$1,044,317 100.0
---------- ----------
Certain securities are listed by country of underlying exposure but may trade
predominantly on other exchanges.
Acronym Name
------- ----
ADR American Depositary Receipt
ADS American Depositary Shares
MIPS Monthly Income Preferred Stock
PRIDES Preferred Redeemable Increased Dividend Equity Securities
TOPRS Trust Originated Preferred Redeemable Stock
See notes to financial statements
<PAGE>
STATEMENT OF ASSETS & LIABILITIES
MAY 31, 1998 (UNAUDITED)
(in thousands except for per share amounts and footnotes)
ASSETS
Investments at value (cost $745,481) $1,044,317
Short-term obligations 6,221
----------
1,050,538
Receivable for:
Dividends $3,709
Fund shares sold 785
Interest 3
Other 24 4,521
------ ---------
Total Assets 1,055,059
LIABILITIES
Payable for:
Fund shares repurchased 2,146
Distributions 1,961
Accrued:
Deferred Trustees fee 15
Other 144
------
Total Liabilities 4,266
----------
NET ASSETS $1,050,793
==========
Net asset value & redemption price per share -
Class A ($339,538/17,178) $ 19.77
==========
Maximum offering price per share - Class A
($19.77/0.9525) $ 20.76(a)
==========
Net asset value & offering price per share -
Class B ($709,650/35,903) $ 19.77(b)
==========
Net asset value & offering price per share -
Class C ($1,605/81) $ 19.77(b)
==========
COMPOSITION OF NET ASSETS
Capital paid in $ 759,280
Undistributed net investment income 125
Accumulated net realized loss (7,455)
Net unrealized appreciation on:
Investments 298,836
Foreign currency transactions 7
----------
$1,050,793
==========
(a) On sales of $50,000 or more the offering price is reduced.
(b) Redemption price per share is equal to net asset value less any applicable
contingent deferred sales charge.
See notes to financial statements.
<PAGE>
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED MAY 31, 1998
(UNAUDITED)
(in thousands)
INVESTMENT INCOME
Dividends $ 20,580
Interest 608
--------
Total investment income (net of nonreclaimable
foreign taxes withheld at source which
amounted to $79) 21,188
EXPENSES
Management fee $3,432
Service fee 1,337
Distribution fee - Class B 2,683
Distribution fee - Class C 4
Transfer agent 1,296
Bookkeeping fee 187
Registration fee 24
Custodian fee 18
Audit fee 21
Trustees fee 31
Reports to shareholders 16
Legal fee 5
Other 36 9,090
------ --------
Net Investment Income 12,098
--------
NET REALIZED & UNREALIZED GAIN (LOSS) ON PORTFOLIO POSITIONS
Net realized gain on:
Investments 49,242
Foreign currency transactions (a)
------
Net Realized Gain 49,242
Net unrealized appreciation
during the period on:
Investments 46,432
Foreign currency transactions 7
------
Net Unrealized Appreciation 46,439
--------
Net Gain 95,681
--------
Increase in Net Assets from Operations $107,779
========
(a) Rounds to less than one.
See notes to financial statements.
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
Six months ended Year ended
(in thousands) May 31 November 30
---------------- -----------
INCREASE (DECREASE) IN NET ASSETS 1998 1997 (a)
Operations:
Net investment income $ 12,098 $ 32,363
Net realized gain 49,242 52,100
Net unrealized appreciation 46,439 116,509
---------- ----------
Net Increase from Operations 107,779 200,972
Distributions:
From net investment income - Class A (5,042) (12,211)
From net investment income - Class B (7,835) (20,526)
From net investment income - Class C (12) (3)
---------- ----------
94,890 168,232
---------- ----------
Fund Share Transactions:
Receipts for shares sold - Class A 57,892 61,367
Value of distributions reinvested - Class A 3,791 9,090
Cost of shares repurchased - Class A (80,517) (145,721)
---------- ----------
(18,834) (75,264)
---------- ----------
Receipts for shares sold - Class B 17,674 16,129
Value of distributions reinvested - Class B 6,381 16,402
Cost of shares repurchased - Class B (62,142) (191,589)
---------- ----------
(38,087) (159,058)
---------- ----------
Receipts for shares sold - Class C 1,178 644
Value of distributions reinvested - Class C 9 2
Cost of shares repurchased - Class C (195) (131)
---------- ----------
992 515
---------- ----------
Net Decrease from Fund
Share Transactions (55,929) (233,807)
---------- ----------
Total Increase (Decrease) 38,961 (65,575)
NET ASSETS
Beginning of period 1,011,832 1,077,407
---------- ----------
End of period (including undistributed
net investment income of $125 and
$910, respectively) $1,050,793 $1,011,832
========== ==========
(a) Class C shares were initially offered on August 1, 1997.
See notes to financial statements.
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS - CONT.
(Unaudited)
Six months ended Year ended
May 31 November 30
---------------- -----------
NUMBER OF FUND SHARES 1998 1997 (a)
Sold - Class A 3,025 3,770
Issued for distributions reinvested - Class A 197 575
Repurchased - Class A (4,184) (9,114)
---------- ----------
(962) (4,769)
---------- ----------
Sold - Class B 906 1,024
Issued for distributions reinvested - Class B 333 1,038
Repurchased - Class B (3,199) (12,139)
---------- ----------
(1,960) (10,077)
---------- ----------
Sold - Class C 60 38
Issued for distributions reinvested - Class C 1 (b)
Repurchased - Class C (10) (8)
---------- ----------
51 30
---------- ----------
(a) Class C shares were initially offered on August 1, 1997.
(b) Rounds to less than one.
See notes to financial statements.
<PAGE>
NOTES TO FINANCIAL STATEMENTS
MAY 31, 1998 (UNAUDITED)
NOTE 1. INTERIM FINANCIAL STATEMENTS
................................................................................
In the opinion of management of Colonial Utilities 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 May 31, 1998, 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 diversified portfolio of a Massachusetts business
trust, registered under the Investment Company Act of 1940, as amended, as an
open-end management investment company. The Fund's investment objective is to
seek current income and long-term growth. The Fund may issue an unlimited number
of shares. The Fund offers three classes of shares: Class A, Class B, and Class
C. Class A shares are sold with a front-end sales charge and Class B shares are
subject to an annual 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. Class C shares are subject to a contingent deferred
sales charge on redemptions made within one year after purchase and an annual
distribution fee.
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: Equity securities generally are valued at
the last sale price or, in the case of unlisted or listed securities for which
there were no sales during the day, at current quoted bid prices.
Forward currency contracts are valued based on the weighted value of the
exchange traded contracts with similar durations.
Short-term obligations with a maturity of 60 days or less are valued at
amortized cost.
The value of all assets and liabilities quoted in foreign currencies are
translated into U.S. dollars at that day's exchange rates.
Portfolio positions for which market quotations are not readily available are
valued at fair value under procedures approved by the Trustees.
Security transactions are accounted for on the date the securities are
purchased, sold or mature.
Cost is determined and gains and losses are based upon the specific
identification method for both financial statement and federal income tax
purposes.
DETERMINATION OF CLASS NET ASSET VALUES AND FINANCIAL HIGHLIGHTS: All income,
expenses (other than the Class B and Class C distribution fees), and 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 and Class C per share data and ratios are calculated by adjusting the
expense and net investment income per share data and ratios for the Fund for the
entire period by the distribution fee applicable to Class B and Class C 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.
The amount and character of income and gains to be distributed are determined in
accordance with income tax regulations which may differ from generally accepted
accounting principles. Reclassifications are made to the Fund's capital accounts
to reflect income and gains available for distribution (or available capital
loss carryforwards) under income tax regulations.
FOREIGN CURRENCY TRANSACTIONS: Net realized and unrealized gains (losses) on
foreign currency transactions includes the fluctuation in exchange rates on
gains (losses) between trade and settlement dates on securities transactions,
gains (losses) arising from the disposition of foreign currency and currency
gains (losses) between the accrual and payment dates on dividends and interest
income and foreign withholding taxes.
The Fund does not distinguish that portion of gains (losses) on investments
which is due to changes in foreign exchange rates from that which is due to
changes in market prices of the investments. Such fluctuations are included with
the net realized and unrealized gains (losses) on investments.
FORWARD CURRENCY CONTRACTS: The Fund may enter into forward currency contracts
to purchase or sell foreign currencies at predetermined exchange rates in
connection with the settlement of purchases and sales of securities. The Fund
may also enter into forward currency contracts to hedge certain other foreign
currency denominated assets. The contracts are used to minimize the exposure to
foreign exchange rate fluctuations during the period between trade and
settlement date of the contracts. All contracts are marked-to-market daily,
resulting in unrealized gains (losses) which become realized at the time the
forward currency contracts are closed or mature.
Realized and unrealized gains (losses) arising from such transactions are
included in net realized and unrealized gains (losses) on foreign currency
transactions. Forward currency contracts do not eliminate fluctuations in the
prices of the Fund's portfolio securities. While the maximum potential loss from
such contracts is the aggregate face value in U.S. dollars at the time the
contract was opened, exposure is typically limited to the change in value of the
contract (in U.S. dollars) over the period it remains open. Risks may also arise
if counterparties fail to perform their obligations under the contracts.
OTHER: Corporate actions are recorded on the ex-date (except for certain foreign
securities which are recorded as soon after ex-date as the Fund becomes aware of
such), net of nonreclaimable tax withholdings. Where a high level of uncertainty
as to collection exists, income on securities is recorded net of all tax
withholdings with any rebates recorded when received. Interest income is
recorded on the accrual basis.
The Fund's custodian takes possession through the federal book-entry system of
securities collateralizing repurchase agreements. Collateral is marked-to-market
daily to ensure that the market value of the underlying assets remains
sufficient to protect the Fund. The Fund may experience costs and delays in
liquidating the collateral if the issuer defaults or enters bankruptcy.
NOTE 3. FEES AND COMPENSATION PAID TO AFFILIATES
................................................................................
MANAGEMENT FEE: Colonial Management Associates, Inc. (the Adviser)
is the investment Adviser of the Fund and furnishes accounting and
other services and office facilities for a monthly fee based on the Fund's
average net assets as follows:
Average Net Assets Annual Fee Rate
------------------- ----------------
First $1 billion 0.65%
Over $1 billion 0.60%
BOOKKEEPING FEE: The Adviser provides bookkeeping and pricing services for
$27,000 per year plus a percentage of the Fund's average net assets as follows:
Average Net Assets Annual Fee Rate
------------------- ----------------
First $50 million No charge
Next $950 million 0.035%
Next $1 billion 0.025%
Next $1 billion 0.015%
Over $3 billion 0.001%
TRANSFER AGENT: Colonial Investors Service Center, Inc. (the Transfer
Agent), an affiliate of the Adviser, 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: Liberty Funds
Distributor, Inc., formerly Liberty Financial Investments, Inc. (the
Distributor), a subsidiary of the Adviser, is the Fund's principal underwriter.
For the six months ended May 31, 1998, the Fund has been advised that the
Distributor retained net underwriting discounts of $15,198 on sales of the
Fund's Class A shares and received contingent deferred sales charges (CDSC) of
$15,013, $461,217 and $192 on Class A, Class B and Class C share redemptions,
respectively.
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 the Fund'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 and Class C 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.
OTHER: The Fund pays no compensation to its officers, all of whom are
employees of the Adviser.
The Fund's Trustees may participate in a deferred compensation plan which may be
terminated at any time. Obligations of the plan will be paid solely out of the
Fund's assets.
NOTE 4. PORTFOLIO INFORMATION
....................................................................
INVESTMENT ACTIVITY: For the six months ended May 31, 1998, purchases and sales
of investments, other than short-term obligations, were $94,801,759 and
$137,250,045, respectively.
Unrealized appreciation (depreciation) at May 31, 1998, based on cost of
investments for both financial statement and federal income tax purposes was:
Gross unrealized appreciation $ 310,075,616
Gross unrealized depreciation (11,239,708)
-------------
Net unrealized appreciation $ 298,835,908
=============
CAPITAL LOSS CARRYFORWARD: At November 30, 1997, capital loss carryforwards
available (to the extent provided in regulations) to offset future realized
gains were approximately as follows:
Year of Capital loss
expiration carryforward
---------- ------------
2002 $ 35,182,000
2003 21,504,000
------------
$ 56,686,000
============
Expired capital loss carryforwards, if any, are recorded as a reduction of
capital paid in.
To the extent loss carryforwards are used to offset any future realized gains,
it is unlikely that such gains would be distributed since they may be taxable to
shareholders as ordinary income.
OTHER: The Fund concentrates its investments in utility securities,
subjecting it to greater risk than a fund that is more diversified.
There are certain additional risks involved when investing in foreign securities
that are not inherent with investments in domestic securities. These risks may
involve foreign currency exchange rate fluctuations, adverse political and
economic developments and the possible prevention of foreign currency exchange
or the imposition of other foreign governmental laws or restrictions.
NOTE 5. LINE OF CREDIT
................................................................................
The Fund may borrow up to 10% of its net assets under a line of credit for
temporary or emergency purposes. Any borrowings bear interest at one of the
following options determined at the inception of the loan: (1) federal funds
rate plus 1/2 of 1%, (2) the lending bank's base rate or (3) IBOR offshore loan
rate plus 1/2 of 1%. There were no borrowings under the line of credit during
the six months ended May 31, 1998.
<PAGE>
FINANCIAL HIGHLIGHTS
Selected data for a share of each class outstanding throughout each period
are as follows:
(Unaudited)
Six months ended May 31
---------------------------------
1998
Class A Class B Class C
------- ------- -------
Net asset value -
Beginning of period $18.060 $18.060 $18.060
------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.270 0.198 0.198
Net realized and unrealized gain 1.724 1.724 1.724
------- ------- -------
Total from Investment Operations 1.994 1.922 1.922
------- ------- -------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.284) (0.212) (0.212)
------- ------- -------
Net asset value -
End of period $19.770 $19.770 $19.770
======= ======= =======
Total return (c) 11.07(d) 10.67(d) 10.67(d)
======= ======= =======
RATIOS TO AVERAGE NET ASSETS:
Expenses (e) 1.21(f) 1.96(f) 1.96(f)
Net investment income (e) 2.78(f) 2.03(f) 2.03(f)
Portfolio turnover 9%(d) 9%(d) 9%(d)
Average commission rate (g) $0.0438 $0.0438 $0.0438
Net assets at end
of period (in millions) $ 339 $ 710 $ 2
(a) Class C shares were initially offered on August 1, 1997. Per share
amounts reflect activity from that date.
(b) The amount shown for a share outstanding does not correspond with
the aggregate net gain on investments for the period due to the timing
of sales and repurchases of Fund shares in relation to fluctuating
market values of the investments of the Fund.
(c) Total return at net asset value assuming all distributions reinvested
and no initial sales charge or contingent deferred sales charge.
(d) Not annualized.
(e) The benefits derived from custody credits and directed brokerage
arrangements had no impact.
(f) Annualized.
(g) For fiscal years beginning on or after September 1, 1995, a fund is
required to disclose its average commission rate per share for trades on
which commissions are charged.
<PAGE>
FINANCIAL HIGHLIGHTS - CONTINUED
Year ended November 30
---------------------------------
1997
Class A Class B Class C(a)
------- ------- -------
$15.210 $15.210 $16.260
------- ------- -------
0.599 0.481 0.166
2.852 2.852 1.794(b)
------- ------- -------
3.451 3.333 1.960
------- ------- -------
(0.601) (0.483) (0.160)
------- ------- -------
$18.060 $18.060 $18.060
======= ======= =======
23.26% 22.36% 12.12%(d)
======= ======= =======
1.22% 1.97% 1.97%(f)
3.76% 3.01% 2.96%(f)
7% 7% 7%
$0.0442 $0.0442 $0.0442
$ 327 $ 684 $ 1
<PAGE>
FINANCIAL HIGHLIGHTS - continued
Selected data for a share of each class outstanding throughout each period are
as follows:
Year ended November 30
----------------------------------------
1996 1995
Class A Class B Class A Class B
------- ------- ------- -------
Net asset value -
Beginning of period $14.370 $14.370 $11.720 $11.720
------- ------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.612 0.502 0.640 0.544
Net realized and unrealized
gain (loss) 0.831 0.831 2.659 2.659
------- ------- ------- -------
Total from Investment
Operations 1.443 1.333 3.299 3.203
------- ------- ------- -------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.603) (0.493) (0.649) (0.553)
------- ------- ------- -------
Net asset value -
End of period $15.210 $15.210 $14.370 $14.370
======= ======= ======= =======
Total return (a) 10.27% 9.45% (28.90%) (27.96%)
======= ======= ======= =======
RATIOS TO AVERAGE NET ASSETS
Expenses 1.20%(b) 1.95%(b) 1.21%(b) 1.96%(b)
Net investment income 4.16%(b) 3.41%(b) 5.00%(b) 4.25%(b)
Portfolio turnover 8% 8% 7% 7%
Average commission rate $0.0484(c) $0.0484(c) -- --
Net assets at end
of period (in millions) $ 348 $ 729 $ 400 $ 821
(a) Total return at net asset value assuming all distributions reinvested
and no initial sales charge or contingent deferred sales charge.
(b) The benefits derived from custody credits and directed brokerage
arrangements had no impact. Prior years' ratios are net of benefits
received, if any.
(c) For fiscal years beginning on or after September 1, 1995, a fund is
required to disclose its average commission rate per share for trades
on which commissions are charged.
<PAGE>
FINANCIAL HIGHLIGHTS - continued
Year ended November 30
----------------------------------------
1994 1993
Class A Class B Class A Class B
------- ------- ------- -------
$13.600 $13.600 $12.960 $12.960
------- ------- ------- -------
0.681 0.587 0.713 0.612
(1.896) (1.896) 0.616 0.616
------- ------- ------- -------
(1.215) (1.309) 1.329 1.228
------- ------- ------- -------
(0.665) (0.571) (0.689) (0.588)
------- ------- ------- -------
$11.720 $11.720 $13.600 $13.600
======= ======= ======= =======
(9.04%) (9.73%) 10.20% 9.42%
======= ======= ======= =======
1.23% 1.98% 1.19% 1.94%
5.49% 4.74% 4.92% 4.17%
16% 16% 6% 6%
------- ------- ------- -------
$ 373 $ 744 $ 503 $ 971
<PAGE>
SHAREHOLDER SERVICES
TO MAKE INVESTING EASIER
Your Fund has one of the most extensive selections of shareholder services
available. Your financial advisor can help you arrange for any of these
services, or you can call Colonial Investors Service Center 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(1): Exchange all or part of your account into the same share
class of another fund distributed by Liberty Funds Distributor, Inc. by phone or
mail.
EASY ACCESS TO YOUR MONEY(1): 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 within one year, you can reinvest in any fund distributed by
Liberty Funds Distributor 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 Fund 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 calendar day of each month unless the 10th falls on a
non-business day or the first business day of the week. If this occurs, the
processing date will be the previous business day. Dividends and capital gains
must be reinvested.
AUTOMATED DOLLAR COST AVERAGING: Transfer money on a monthly basis from any fund
with a balance of $5,000 into the same share class of up to four other funds
distributed by Liberty Funds Distributor. Minimum for each transfer is $100.
RETIREMENT PLANS: Choose from a broad range of retirement plans, including IRAs.
(1) Redemptions and exchanges are made at the next determined net asset value
after the request is received by the Transfer Agent. Proceeds may be more or
less than your original cost. The exchange privilege may be terminated at any
time. Exchanges are not available on all funds. Investors who purchase Class B
or C shares, or $1 million or more of Class A shares, may be subject to a
contingent deferred sales charge.
<PAGE>
HOW TO REACH COLONIAL
BY PHONE OR BY MAIL
BY TELEPHONE
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 service 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 a.m. to 8:00 p.m. ET, and Saturdays from February through
mid-April, 10:00 a.m. to 2:00 p.m. ET.
COLONIAL TELEPHONE TRANSACTION DEPARTMENT - 1-800-422-3737
To purchase, exchange or sell shares by telephone, call Monday to Friday, 9:00
a.m. to 7:00 p.m. 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 fund distributed by Liberty Financial Investments,
call Monday to Friday, 8:30 a.m. to 6:30 p.m. ET.
BY MAIL
COLONIAL INVESTORS SERVICE CENTER, INC.
P.O. BOX 1722
BOSTON, MA 02105-1722
<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
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.
LIBERTY FUNDS DISTRIBUTOR INVESTOR OPPORTUNITIES: 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.)
<PAGE>
IMPORTANT INFORMATION ABOUT THIS REPORT
The Transfer Agent for Colonial Utilities Fund is:
Colonial Investors Service Center, Inc.
P.O. Box 1722
Boston, MA 02105-1722
1-800-345-6611
Colonial Utilities 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 Utilities 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 and with the most recent copy of
Liberty Funds Distributor Performance Update.
<PAGE>
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, & Frankel)
JAMES E. GRINNELL
Private Investor (formerly Senior Vice President-Operations, The Rockport
Company)
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, CS First Boston
Merchant Bank; and President and Chief Executive Officer, The First Boston
Corporation)
JAMES L. MOODY, JR.
Retired (formerly Chairman of the Board and Chief Executive Officer, Hannaford
Bros. Co.)
JOHN J. NEUHAUSER
Dean, Boston College School of Management
ROBERT L. SULLIVAN
Retired Partner, Peat Marwick Main & Co. (formerly Management Consultant,
Saatchi and Saatchi Consulting Ltd. and Principal and International Practice
Director, Management Consulting, Peat Marwick Main & Co.)
[Logo] L I B E R T Y
COLONIAL FUNDS o STEIN ROE ADVISOR FUNDS o NEWPORT FUNDS
One Financial Center, Boston, MA 02111-2621, 1-800-426-3750
Visit us at www.libertyfunds.com
UF-03/400F-0598 (7/98) 98/678
