<PAGE>
- --------------------------------------------------------------
COLONIAL MUNICIPAL MONEY MARKET FUND SEMIANNUAL REPORT
- --------------------------------------------------------------
December 31, 1998
-------------------------------
Not FDIC May Lose Value
Insured No Bank Guarantee
-------------------------------
<PAGE>
COLONIAL MUNICIPAL MONEY MARKET FUND HIGHLIGHTS
JULY 1, 1998 - DECEMBER 31, 1998
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 all of its assets in the
SR&F Municipal Money Market Portfolio (Portfolio), a municipal money market fund
with the same investment objective as the Fund.
PORTFOLIO MANAGER COMMENTARY: "We anticipated the Federal Reserve Board's (Fed)
easing of interest rates, so we lengthened maturity. As a result, we maintained
the Fund's earning power. We continued to invest in variable-rate notes for
liquidity purposes, with rates on these instruments outperforming six-month
notes during the fourth quarter. A modest rate cut by the Fed is possible if the
U.S. economy slows in early 1999, which would create a challenging environment
in maintaining the Fund's current level of income."
- Ronnie Wallace
COLONIAL MUNICIPAL MONEY MARKET FUND PERFORMANCE
Class A Class B Class C
- -------------------------------------------------------------------------------
Inception dates 6/16/87 5/5/92 8/1/97
- -------------------------------------------------------------------------------
Six-month distributions declared
per share $0.014 $0.009 $0.012
- -------------------------------------------------------------------------------
7-day yields on 12/31/98(1) 3.08% 2.10% 2.68%
- -------------------------------------------------------------------------------
7-day taxable-equivalent yields on 12/31/98(2) 5.10% 3.48% 4.44%
- -------------------------------------------------------------------------------
30-day yields on 12/31/98(1) 2.75% 1.76% 2.35%
Portfolio Breakdown(3) Portfolio Maturity(3)
(as of 12/31/98) (as of 12/31/98)
- ---------------------------------- ----------------------------------
Variable-Rate Notes .........69.9% 0 - 29 days .................71.1%
Tax-Exempt Bonds ............16.9% 30 - 89 days .................4.4%
Other Tax Exempts ............6.4% 90 - 179 days ...............10.2%
Tax-Anticipation Notes .......2.2% 180 - 299 days ..............10.3%
Put Bonds ....................3.9% 300 - 375 days ...............4.0%
Other ........................0.7%
(1) If the Advisor or its affiliates had not waived or borne certain Fund
expenses, the 7-day and 30-day yields would have been 2.08% and 1.75% for
Class A shares, 1.10% and 0.76% for Class B shares, and 1.08% and 0.76% for
Class C shares, respectively.
(2) Taxable-equivalent yields are based on the 39.6% federal income tax rate.
(3) Portfolio breakdown and maturity weightings are calculated as a percentage
of 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.
<PAGE>
PRESIDENT'S MESSAGE
TO FUND SHAREHOLDERS
[Photo of Stephen E. Gibson]
I am pleased to present the semiannual report for Colonial Municipal Money
Market Fund for the six-month period ended December 31, 1998.
Conditions for fixed-income investments varied considerably during the period.
While the environment for bonds was positive overall, a variety of domestic and
international factors created a volatile climate for fixed-income investors. In
the U.S., the periodic fears of inflation that existed early in the period all
but vanished during the second half, as an increasing number of signs pointed
toward a gradually slowing U.S. economy. This environment set the stage for a
series of interest rate cuts by the Federal Reserve Board in the fall of 1998,
helping bond values end the period on a positive note.
Flight to quality was a theme that repeated itself at various times during
the period. Abroad, the economic and financial turmoil that began in Asia in the
fall of 1997 gradually spread to other less-developed markets. As a result,
investors worldwide were drawn to the relative safety and stability of U.S.
Treasury bonds. While returns on fixed-income investments, including municipals,
were positive, investor demand for quality and stability made U.S.
Treasury bonds the biggest winners.
For investors seeking a relatively stable environment for their investment
dollars and the potential for competitive, tax-exempt income, Colonial Municipal
Money Market Fund remains an attractive option for their investment portfolio.
Thank you for choosing Colonial Municipal Money Market Fund and for giving us
the opportunity to serve your investment needs.
Respectfully,
/s/ Stephen E. Gibson
Stephen E. Gibson
President
February 11, 1999
Because market and economic conditions change, there can be no assurance that
the trends discussed above will continue.
<PAGE>
SR&F MUNICIPAL MONEY MARKET PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1998 (IN THOUSANDS)
(UNAUDITED)
MUNICIPAL SECURITIES - 101.9% PAR VALUE
- --------------------------------------------------------------------------------
ALASKA - 0.2%
Anchorage Alaska Water Revenue (FSA Insured)
4.500% 8/1/99 $ 235 $ 236
--------
................................................................................
ALABAMA - 0.4%
University of Alabama Revenue Series A (General
Fee-Huntsville, MBIA Insured, prerefunded
to 11/1/99, escrowed in U.S. Treasury securities)
7.000% 11/1/09 500 527
--------
................................................................................
ARKANSAS - 2.2%
Clark County Solid Waste Disposal Revenue
(Reynolds Metals Project, LOC SunTrust
Bank) VRDB 4.050% (a) 3,000 3,000
--------
................................................................................
CALIFORNIA - 1.7%
Los Angeles County GO TRAN Series 98-99A
4.500% 6/30/99 1,000 1,003
Orange California IDR Series A (Control Air
Conditioning Project, LOC California State
Teachers Retirement) VRDB 4.000% (a) 1,400 1,400
--------
2,403
--------
................................................................................
COLORADO - 3.5%
Colorado Health Facilities Authority Revenue
(AMC Cancer Research Center, LOC U.S. Bank NA)
3.750% 1/15/28 (Mandatory Put 1/15/99) 1,000 1,000
Colorado Springs IDR (Catalano Family LLP Project,
LOC Bank One Colorado) VRDB 4.150% (a) 1,200 1,200
Lowry Economic Redevelopment Authority Colorado
Revenue Series B (LOC Canadian Imperial Bank)
VRDB 4.000% 1,000 1,000
SBC Metropolitan District Colorado (LOC U. S
Bank NA) 3.350% 12/1/17 (Mandatory Put 12/1/99) 1,555 1,555
--------
4,755
--------
................................................................................
DELAWARE - 2.2%
Delaware State Economic Development Authority
IDR Series C (Star Enterprise, Delaware Clean
Power Project, LOC Canadian Imperial Bank)
VRDB 4.110% (a) 3,000 3,000
--------
................................................................................
GEORGIA - 1.9%
Gwinnett County Development Authority IDR
(Price Companies Project, LOC NationsBank of
Georgia) VRDB 4.200% (a) 2,600 2,600
--------
................................................................................
ILLINOIS - 14.9%
ABN AMRO Munitops Certificates Trust
Series 1998-14 (Cook County GO Refunding
Bond, ABN AMRO Liquidity Provider)
VRDB 4.200% (b) 1,000 1,000
Chicago Economic Development Revenue (Crane
Carton Project, LOC Northern Trust) VRDB 4.200% 750 750
Chicago Revenue (De La Salle Institute Project,
LOC Northern Trust) VRDB 4.000% 900 900
Chicago Tax Increment Allocation
(Stockyards, LOC Northern Trust)
Series A VRDB 4.000% 1,500 1,500
Cook County School District No. 99 Cicero GO
(FSA Insured) 3.400% 6/1/99 1,225 1,226
Glendale Heights IDR (Judy LLC/York Corrugated,
LOC Harris Trust and Savings Bank)
VRDB 4.200% (a) 1,000 1,000
Homewood Flossmoor Park District GO
(FSA Insured) 4.200% 12/1/99 135 136
Illinois Development Finance Authority Revenue
(Nutrasweet Project, gtd by Monsanto)
VRDB 4.300% (a) 4,300 4,300
(American Osteopathic Association, LOC Harris
Trust and Savings Bank) VRDB 4.050% 700 700
(Wheaton Academy Project, LOC Northern Trust)
VRDB 4.050% 1,000 1,000
Illinois Health Facility Authority Revenue
(University of Chicago Hospital Project)
2.950% 8/1/15 (Mandatory Put 5/3/99) 1,000 1,000
Illinois Student Assistance Commission Student Loan
Revenue (LOC Bank of America Illinois)
Series 96A VRDB 4.050% (a) 1,000 1,000
Montgomery & Bond Counties Community Unit
School District Number 3 (FSA Insured)
3.400% 11/1/99 395 395
Morton IDR Series A (Morton Welding Project,
LOC Bank One Illinois NA Chicago)
VRDB 4.250% (a) 940 940
Quad Cities Regional Economic Development
Authority Revenue (Steel Warehouse, LOC
Bank One Indiana) VRDB 4.150% (a) 4,200 4,200
Sauget PCR (Monsanto Project) VRDB 4.150% 300 300
--------
20,347
--------
................................................................................
INDIANA - 9.5%
Allen County Economic Development Revenue
(Golden Years Homestead Project, LOC
Norwest Bank Minnesota) VRDB 4.000% 1,655 1,655
Crawfordsville Economic Development Revenue
(Pedcor Investments, Shady Knoll Project,
LOC FHLB) VRDB 4.100% (a) 1,567 1,567
Franklin Economic Development Revenue
(Pedcor Investments, Lakeview Apartments,
LOC FHLB) VRDB 4.100% (a) 2,839 2,839
Gary Environmental Improvement Revenue
(U.S. Steel Project, LOC Bank of Nova Scotia)
VRDB 3.500% 500 500
Indiana Municipal Power Agency Power
Supply System Revenue Series B
(MBIA Insured) 4.850% 1/1/99 500 500
Kokomo Economic Development Revenue (Village
Community Partners IV Project, LOC
FHLB) VRDB 4.100% (a) 2,940 2,940
La Porte County Economic Development Revenue
(Pedcor Investments, Woodland Project, LOC
FHLB) VRDB 4.100% (a) 1,965 1,965
Plymouth Economic Development Revenue Series A
(Hillcrest Apartments Project, LOC Lasalle National
Bank) VRDB 4.250% (a) 1,000 1,000
--------
12,966
--------
................................................................................
IOWA - 6.7%
Clinton IDR (Sethness Products Project, LOC
Northern Trust) VRDB 4.150% (a) 4,000 4,000
Iowa Higher Education Loan Authority Revenue
(Saint Ambrose University, LOC Norwest Bank
Minnesota) VRDB 4.1000% 500 500
Iowa State Schools Cash Anticipation
Program Warrant Certificates (FSA Insured)
Series 97-98B 4.250% 1/28/99 1,000 1,000
Series 98-99A 4.500% 6/25/99 2,000 2,007
Muscatine County PCR (Monsanto Project)
VRDB 4.150% 1,500 1,500
Ottumwa Revenue (Ottumwa Regional Health Center,
LOC Norwest Bank Minnesota) VRDB 4.050% 200 200
--------
9,207
--------
................................................................................
KANSAS - 0.6%
Olathe IDR (Garmin International Project,
LOC NationsBank) VRDB 4.200% (a) 800 800
--------
................................................................................
KENTUCKY - 3.9%
Covington Industrial Building Revenue
(White Castle Distributing, LOC Bank One
Columbus) Series 1991 VRDB 4.150% (a) 3,560 3,560
Shelby County Industrial Building Revenue
(Roll Forming, LOC Bank One Kentucky)
VRDB 4.150% (a) 1,730 1,730
--------
5,290
--------
................................................................................
LOUISIANA - 1.0%
Calcasieu Parish Industrial Development Board
Environmental Revenue (Citgo Petroleum Project,
LOC Banque Nationale Paris) VRDB 5.250% (a) 200 200
Lake Charles Harbor & Term District Port
Facilities Revenue (E.I. Dupont de Nemours)
VRDB 5.100% 300 300
Saint Charles Parish PCR (Shell Oil Company
Norco Project) VRDB 5.200% (a) 500 500
Terrebonne Parish Hospital Service District
No. 1 (General Medical Center Project,
AMBAC Insured) 4.000% 4/1/99 320 320
--------
1,320
--------
................................................................................
MASSACHUSETTS - 0.6%
Massachusetts State Turnpike Authority Bond
Anticipation Notes Series A 5.000% 6/1/99
(escrowed in U.S. Treasury securities) 785 789
--------
................................................................................
MARYLAND - 1.2%
Anne Arundel County Economic Development
Revenue (Baltimore Gas and Electric Project)
2.950% 12/1/18 (Mandatory Put 4/5/99) (a) 1,000 1,000
Maryland State Community Development
Administration Department of Housing and
Community Development Single Family Program
Sixth Series 4.450% 4/1/99 (a) 655 656
--------
1,656
--------
................................................................................
MICHIGAN - 2.5%
ABN AMRO Munitops Certificates Trusts
Series 1998-13 (Michigan Trunk Line
Revenue, ABN AMRO Liquidity Provider)
VRDB 4.170% (b) 2,000 2,000
Detroit City School District GO 4.500% 7/1/99 1,000 1,004
Highland Park School District GO (FSA Insured)
3.900% 5/1/99 185 185
Lowell Michigan Area Schools GO 6.750% 5/1/99 225 227
--------
3,416
--------
................................................................................
MINNESOTA - 2.2%
Maple Grove Multifamily Housing Revenue (Eagle
Ridge Apartments, LOC Norwest Bank Minnesota)
VRDB 3.950% 3,000 3,000
--------
................................................................................
MISSOURI - 4.4%
Jefferson County Industrial Development Authority
IDR (GHF Holdings Project, LOC Bank One
Indiana) VRDB 4.150% (a) 3,700 3,700
Kansas City Industrial Development Authority
IDR (Lanter Project, LOC Harris Trust & Savings
Bank) VRDB 4.200% 600 600
Missouri State Health & Educational Facilities
Authority Revenue (Washington University)
Series C VRDB 5.000% 600 600
Saint Charles County Industrial Development
Authority PCR (Monsanto Project)
VRDB 4.100% 100 100
St. Louis General Fund Revenue TRAN
4.500% 6/30/99 1,000 1,004
--------
6,004
--------
................................................................................
MONTANA - 0.7%
Montana State Board of Investment Revenue
Series 1991 3.600% 3/1/01 (Optional Put 3/1/99) 1,000 1,000
--------
................................................................................
NEW HAMPSHIRE - 0.9%
New Hampshire State Business Finance Authority
Resource Recovery Revenue (Wheelabrator Concord,
LOC Wachovia Bank) Series B VRDB 4.050% (a) 1,200 1,200
--------
................................................................................
NEW JERSEY - 0.7%
Middlesex School District GO (FSA Insured)
4.750% 4/15/99 250 250
Pitman School District GO (FGIC Insured)
4.800% 4/1/99 325 326
South Brunswick Township GO 4.400% 8/1/99 395 396
--------
972
--------
................................................................................
NEW MEXICO - 0.8%
Albuquerque Educational Facilities Revenue (Menual
School Project, LOC Norwest Bank Minnesota)
VRDB 4.100% 300 300
Rio Rancho Public School District Number 94 GO
Series B (FSA Insured) 6.100% 8/1/99 835 846
--------
1,146
--------
................................................................................
NEW YORK - 2.2%
Batavia School District GO (FSA Insured)
4.350% 6/15/99 1,639 1,643
Nassau County GO Series S (AMBAC Insured)
5.000% 3/1/99 715 716
Oceanside Unified Free School District GO
(FGIC Insured) 7.000% 6/15/99 650 659
--------
3,018
--------
................................................................................
NORTH CAROLINA - 0.5%
New Hanover County Industrial Facilities
(Gang-Nail Systems Project, LOC Harris
Trust & Savings Bank) VRDB 4.050% 700 700
--------
................................................................................
OHIO - 2.3%
Hancock County Multi-Family Revenue
(Pedcor Investments, Crystal Glen Apartments
Project, LOC FHLB) VRDB 4.200% (a) 750 750
Ohio Environmental Improvement Revenue
(U.S. Steel Project, LOC Pittsburgh
National Bank) VRDB 3.500% 400 400
Ohio Housing Finance Agency Mortgage Revenue Series
A-2 (gtd. by Trinity Funding GIC) 3.800% 3/1/99 (a) 1,500 1,500
Ohio State Building Authority Series C
(prerefunded to 10/1/99, escrowed in U.S.
Treasury securities) 7.350% 10/1/04 500 532
--------
3,182
--------
................................................................................
OKLAHOMA - 0.4%
Tulsa County Independent School District No. 9
Union Board of Education GO 5.350% 5/1/99 500 527
--------
................................................................................
PENNSYLVANIA - 3.0%
Pennsylvania State GO Second Series A (MBIA
Insured) 6.000% 11/1/99 200 204
Pennsylvania State Higher Educational Facilities
Authority College & University Revenue (Bryn
Mawr College, FGIC Insured, prerefunded 12/1/99,
escrowed in U.S. Treasury securities) 6.750% 12/1/01 750 788
Philadelphia TRAN Series 98-99A 4.250% 6/30/99 1,000 1,002
Quakertown General Authority Revenue Series 96A
(LOC PNC Bank) VRDB 4.050% 2,058 2,058
--------
4,052
--------
................................................................................
SOUTH CAROLINA - 1.5%
South Carolina Jobs Economic Development
Authority IDR (Specialty Equipment Companies,
LOC Bank of America, Illinois) VRDB 4.150% (a) 2,045 2,045
--------
................................................................................
TENNESSEE - 2.6%
Knoxville Waste Water System Revenue
4.375% 4/1/99 610 610
McMinn County Industrial Development Board
IDR (Creative Fabrication, LOC NBD
Bank) VRDB 4.250% (a) 1,096 1,096
Montgomery County Public Building Authority
Pooled Financing Government Obligation Revenue
(LOC NationsBank) VRDB 4.050% 1,900 1,900
--------
3,606
--------
................................................................................
TEXAS - 6.5%
Arlington GO 6.500% 8/15/99 660 673
Austin Certificates of Obligation 7.000% 9/1/99 620 634
Bexar Metropolitan Water District Waterworks
Revenue (MBIA Insured) 4.350% 5/1/99 300 300
Brazos River Authority PCR (Texas Utilities
Electric Co.) VRDB 5.200% (a) 500 500
Brazos Industrial Development Corporation Marine
Term Revenue (Monsanto Project) VRDB 4.150% 400 400
Carrollton GO 6.250% 8/15/99 335 340
Gulf Coast Industrial Development Authority Solid
Waste Disposal Revenue (Citgo Petroleum Project,
LOC NationsBank of Texas) VRDB 5.250% (a) 300 300
Gulf Coast Waste Disposal Authority PCR
(Monsanto Project) VRDB 4.150% 200 200
Haltom City GO (AMBAC Insured) 6.500% 2/1/99 300 300
Haltom City Waterworks and Sewer Revenue
(FSA Insured) 6.500% 2/1/99 100 100
Harris County Industrial Development Corporation
IDR (Precision General Project, LOC Morgan
Guaranty Trust) VRDB 4.150% (a) 2,060 2,060
Harris County Revenue (MBIA Insured)
5.100% 8/15/99 (a) 235 236
Pasadena Independent School District GO
(gtd. by PSF) 4.500% 2/15/99 435 435
Richardson Independent School District GO
5.500% 2/15/99 740 741
Robertson County Industrial Development
Corporation (Sanderson Farms Project, LOC Harris
Trust & Savings Bank) VRDB 4.250% (a) 100 100
Tarrant County Hospital District GO 5.000% 8/15/99 500 504
Texas State Veterans Housing Assistance Program
Fund II Series A 4.150% 6/1/99 (a) 580 581
University of Texas Revenue Series B
5.000% 8/15/99 500 504
--------
8,908
--------
................................................................................
UTAH - 0.2%
Provo City School District GO 3.400% 6/15/99 $ 105 $ 105
Utah Municipal Power System Revenue (Hunter
Project, AMBAC Insured) 4.200% 7/1/99 250 250
--------
355
--------
................................................................................
VERMONT - 0.7%
Vermont Educational & Health Buildings Financing
Agency Revenue (Middlebury College Project)
Series A 3.750% 5/1/28 (Optional Put 5/1/99) 910 910
--------
................................................................................
WASHINGTON - 7.3%
Washington State Housing Finance Commission
Multi-Family Housing Revenue (Hamilton Place
Senior Living Project, LOC U.S. Bank
of Washington) Series A VRDB 4.000% (a) 1,140 1,140
Washington State Public Power Supply System Revenue
Series A (Nuclear Project No. 1) 7.250% 7/1/99 1,500 1,528
Series C (Nuclear Project No. 2) 7.200% 7/1/99 3,650 3,710
Yakima County Public Corporation IDR (John I. Haas
Project, LOC Bayerische Vereinsbank) VRDB 4.150% (a) 3,550 3,550
--------
9,928
--------
................................................................................
WISCONSIN - 12.0%
Carlton PCR (Wisconsin Power &
Light Project) VRDB 4.200% (a) 4,000 4,000
Chase IDR (Belgioioso Cheese Project, LOC
Bank One Wisconsin) VRDB 4.150% (a) 1,000 1,000
Fond Du Lac IDR (Brenner Tank, LOC Bank One
Wisconsin) VRDB 4.150% (a) 2,355 2,355
Fox Lake Redevelopment Authority IDR
(Karavan Trailers Project, LOC Bank One
Wisconsin) VRDB 4.150% (a) 1,600 1,600
Hamilton School District GO 4.000% 4/1/99 415 415
Holland IDR (White Clover Dairy Project,
LOC Bank One Wisconsin) VRDB 4.150% (a) 2,275 2,275
Kenosha IDR (Monarch Plastics Project, LOC
Bank One Wisconsin) VRDB 4.150% (a) 1,920 1,920
Kettle Moraine School District GO (AMBAC
Insured) 3.500% 3/15/99 375 375
Mukwonago School District Bond Anticipation
Notes 3.750% 11/1/99 1,000 1,005
Oshkosh Area School District GO Bond Anticipation
Notes 3.330% 12/15/99 1,000 1,001
Wisconsin State Clean Water Revenue Series 1
4.200% 6/1/99 500 500
--------
16,446
--------
TOTAL MUNICIPAL SECURITIES (c) $139,311
--------
OTHER ASSETS & LIABILITIES, NET - (1.9)% (2,595)
- --------------------------------------------------------------------------------
NET ASSETS - 100.0% $136,716
--------
Notes to Portfolio of Investments:
- --------------------------------------------------------------------------------
(a) Security is subject to federal alternative minimum tax. At December 31,
1998, the aggregate amortized cost of these securities represented 56.5
percent of net assets.
(b) Represents private placement securities issued under Rule 144A, which are
exempt from the registration requirements of the Securities Act of 1933.
These securities generally are issued to qualified instituional buyers, such
as the Portfolio, and any resale by the Portfolio must be in an exempt
transaction, normally to other qualified institutional investors. At
December 31, 1998, the aggregate value of the Portfolio's private placement
securities was $3,000 (aggregate cost of $3,000) which represented 2.2
percent of net assets.
(c) At December 31, 1998, the cost of investments for financial reporting and
federal income tax purposes was identical.
Variable rate demand bonds (VRDB) are securities whose yields are
periodically reset at levels that are generally comparable to tax-exempt
commercial paper. These securities are payable on demand within seven
calendar days and normally incorporate an irrevocable letter of credit or
line of credit from a major bank.
ACRONYM NAME
------- ----
LOC Letter or Line of Credit
GO General Obligation
TRAN Tax & Revenue Anticipation Note
IDR Industrial Development Bond
PCR Pollution Control Bond
See notes to financial statements.
<PAGE>
SR&F MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF ASSETS & LIABILITIES
DECEMBER 31, 1998 (UNAUDITED)
(in thousands)
ASSETS
Investments, at amortized cost $ 139,311
Receivable for:
Investments sold $ 5,687
Interest 977
Cash 11 6,675
-------- ---------
Total Assets 145,986
LIABILITIES
Payable for investments purchased 9,195
Payable to investment Advisor 31
Other liabilities 44
-------
Total Liabilities 9,270
---------
NET ASSETS applicable to investors' beneficial interests $ 136,716
---------
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED DECEMBER 31, 1998
(UNAUDITED)
(in thousands)
INVESTMENT INCOME
Tax-exempt interest $ 2,380
-------
EXPENSES
Management fees $ 170
Accounting fees 14
Audit and legal fees 9
Trustees' fees 4
Other 9
-----
Total Expenses 206
-------
Net Investment Income 2,174
-------
REALIZED LOSSES ON INVESTMENTS
Net realized losses on investments (3)
-------
Net Increase in Net Assets from Operations $ 2,171
-------
See notes to financial statements.
<PAGE>
SR&F MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS
(Unaudited)
Six months
ended Year ended
(in thousands) December 31 June 30
------------ -----------
INCREASE (DECREASE) IN NET ASSETS 1998 1998
Operations:
Net investment income $ 2,174 $ 4,891
Net realized losses on investments (3) -
-------- --------
Net increase in net assets resulting
from operations 2,171 4,891
-------- --------
Transactions in investors' beneficial
interests:
Contributions 37,533 80,237
Withdrawals (35,006) (92,038)
-------- --------
Net transactions in investors'
beneficial interest 2,527 (11,801)
-------- --------
Net increase (decrease) in net assets 4,698 (6,910)
TOTAL NET ASSETS
Beginning of period 132,018 138,928
-------- --------
End of period $136,716 $132,018
-------- --------
FINANCIAL HIGHLIGHTS
(Unaudited)
Six months Period
ended ended
December 31 Years ended June 30 June 30
----------- ------------------- -------
RATIOS TO AVERAGE 1998 1998 1997 1996(a)
NET ASSETS
Expenses 0.30%(b) 0.34% 0.32% 0.30%(b)
Net investment income 3.20%(b) 3.41% 3.36% 3.50%(b)
(a) The Portfolio commenced operations September 28, 1995.
(b) Annualized.
See notes to financial statements.
<PAGE>
SR&F MUNICIPAL MONEY MARKET PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998 (UNAUDITED)
(All amounts, except per-share amounts, in thousands)
NOTE 1. ORGANIZATION OF THE SR&F MUNICIPAL MONEY MARKET PORTFOLIO
................................................................................
SR&F Municipal Money Market Portfolio (the "Portfolio") is a series of SR&F Base
Trust, a Massachusetts common law trust organized under an Agreement and
Declaration of Trust dated August 23, 1993. The Portfolio allocates income,
expenses and realized gains and losses to each investor on a daily basis, based
on their respective percentage of ownership. At December 31, 1998, Stein Roe
Municipal Money Market Fund and Colonial Municipal Money Market Fund owned 89.6%
and 10.4%, respectively, of the Portfolio.
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
................................................................................
The following summarizes the significant accounting policies of the Portfolio.
These policies are in conformity with generally accepted accounting principles,
which require management to make estimates and assumptions that affect the
amounts reported in the financial statements and accompanying notes. Actual
results could differ from those estimates.
INVESTMENT TRANSACTIONS AND INVESTMENT INCOME:
Investment transactions are accounted for on trade date. Interest income,
including discount accretion and premium amortization, is recorded daily on the
accrual basis. Realized gains or losses from investment transactions are
reported on an identified cost basis.
INVESTMENT VALUATIONS:
The Portfolio utilizes the amortized cost method to value its investments. This
technique approximates market value and involves valuing a security initially at
cost and, thereafter, assuming a constant amortization to maturity of any
discount or premium. In the event that a deviation of 0.50% or more exists
between each Fund's $1.00 per-share net asset value, calculated at amortized
cost, and the net asset value calculated by reference to market quotations, the
Board of Trustees would consider what action, if any, should be taken. Other
assets are valued at fair value as determined in good faith by or under the
direction of the Board of Trustees.
The Funds attempt to maintain a per-share net asset value of $1.00, which
management believes will be possible under most conditions.
FEDERAL INCOME TAXES:
No provision is made for federal income taxes because the Portfolio is treated
as a partnership for federal income tax purposes and all of its income is
allocated to its owners based on their respective percentages of ownership.
NOTE 3. PORTFOLIO COMPOSITION
................................................................................
The Portfolio invests in municipal securities including, but not limited to,
general obligation bonds, revenue bonds and escrowed bonds (i.e. bonds that have
been refinanced, the proceeds of which have been invested in U.S. Government
obligations that are set aside to pay off the original issue at the first call
date or maturity.)
The Portfolio invests in 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. At December 31, 1998, 61.6% of the Portfolio
was backed by bank letters of credit. See the portfolio of investments for
additional information on portfolio composition.
NOTE 4. TRUSTEES' FEES AND TRANSACTIONS WITH AFFILIATES
................................................................................
The Portfolio pays a monthly management fee to Stein Roe & Farnham Incorporated
(the "Advisor"), an indirect, wholly-owned subsidiary of Liberty Financial
Companies, Inc. ("Liberty"), for its services as investment advisor and manager.
The management fee for the Portfolio is computed at an annual rate of 0.25% of
average daily net assets. The Advisor also provides accounting services. Certain
officers and trustees of the Trust are also officers of the Advisor. The
compensation of trustees not affiliated with the Advisor for the Portfolio for
the period ended December 31, 1998, was $4. No remuneration was paid to any
other trustee or officer of the Trust.
<PAGE>
COLONIAL MUNICIPAL MONEY MARKET FUND
STATEMENT OF ASSETS & LIABILITIES
DECEMBER 31, 1998 (UNAUDITED)
(in thousands except for per share amounts)
ASSETS
Investment in SR&F Municipal Money Market
Portfolio $ 14,275
Receivable for:
Fund shares sold $ 1
Other 6 7
---- ---------
Total Assets 14,282
LIABILITIES
Payable for:
Fund shares repurchased 64
Distributions 3
Accrued:
Deferred Trustees fees 3
Other 17
----
Total Liabilities 87
---------
NET ASSETS $ 14,195
---------
Net asset value:
Class A ($12,974/12,976) $ 1.00 (a)
---------
Class B ($942/942) $ 1.00 (a)
---------
Class C ($279/279) $ 1.00 (a)
---------
COMPOSITION OF NET ASSETS
Capital paid in $ 14,196
Undistributed net investment income 1
Accumulated net realized loss (2)
---------
$ 14,195
---------
(a) Redemption price per share is equal to net asset value less any applicable
contingent deferred sales charge.
See notes to financial statements.
<PAGE>
COLONIAL MUNICIPAL MONEY MARKET FUND
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED DECEMBER 31, 1998
(UNAUDITED)
(in thousands)
INVESTMENT INCOME
Interest income from
SR&F Municipal Money Market Portfolio $ 284
Expenses allocated from
SR&F Municipal Money Market Portfolio (25)
-------
259
EXPENSES
Administration fee $ 20
Service fee - Class B 2
Service fee - Class C (a)
Distribution fee - Class B 5
Distribution fee - Class C 1
Transfer agent 18
Bookkeeping fee 9
Trustees fee 3
Audit fee 5
Legal fee 2
Registration fee 22
Reports to shareholders 5
Other 24
----
116
Fees and expenses waived or borne
by the Administrator (73)
Fee waived by the Distributor - Class C (1) 42
----- -------
Net Investment Income 217
-------
NET REALIZED LOSS ON PORTFOLIO POSITIONS
Net realized loss (1)
-------
Increase in Net Assets from Operations $ 216
-------
(a) Rounds to less than one.
See notes to financial statements.
<PAGE>
COLONIAL MUNICIPAL MONEY MARKET FUND
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
Six months ended Year ended
(in thousands) December 31 June 30
--------------- ----------
INCREASE (DECREASE) IN 1998 1998(a)
NET ASSETS
Operations:
Net investment income $ 217 $ 591
Net realized loss (1) --
------- -------
Net Increase from Operations 216 591
Distributions:
From net investment income - Class A (203) (560)
From net investment income - Class B (11) (26)
From net investment income - Class C (2) (3)
------- -------
0 2
Fund Share Transactions:
Receipts for shares sold - Class A 5,046 17,953
Value of distributions reinvested - Class A 200 449
Cost of shares repurchased - Class A (8,662) (20,465)
------- -------
(3,416) (2,063)
------- -------
Receipts for shares sold - Class B 970 2,475
Value of distributions reinvested - Class B 11 22
Cost of shares repurchased - Class B (1,308) (2,430)
------- -------
(327) 67
------- -------
Receipts for shares sold - Class C 104 333
Value of distributions reinvested - Class C 3 3
Cost of shares repurchased - Class C (4) (160)
------- -------
103 176
------- -------
Net Decrease from Fund
Share Transactions (3,640) (1,820)
------- -------
Total Decrease (3,640) (1,818)
NET ASSETS
Beginning of period 17,835 19,653
------- -------
End of period (undistributed net
investment income of $1 and $0,
respectively) $14,195 $17,835
------- -------
(a) Class C shares were initially offered on August 1, 1997.
(b) Rounds to less than one.
Statement of Changes in Net Assets continued on following page.
See notes to financial statements.
<PAGE>
COLONIAL MUNICIPAL MONEY MARKET FUND
STATEMENT OF CHANGES IN NET ASSETS - CONT.
(Unaudited)
Six months ended Year ended
(in thousands) December 31 June 30
--------------- ----------
NUMBER OF FUND SHARES 1998 1998(a)
Sold - Class A 5,046 17,954
Issued for distributions reinvested - Class A 201 449
Repurchased - Class A (8,663) (20,465)
------- -------
(3,416) (2,062)
------- -------
Sold - Class B 970 2,475
Issued for distributions reinvested - Class B 11 22
Repurchased - Class B (1,309) (2,430)
------- -------
(328) 67
------- -------
Sold - Class C 104 333
Issued for distributions reinvested - Class C 3 3
Repurchased - Class C (4) (160)
------- -------
103 176
------- -------
<PAGE>
COLONIAL MUNICIPAL MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998 (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, 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 non-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 invests all of its
investable assets in interests in the 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 (10.4% at
December 31, 1998). 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. The Fund offers three classes of shares: Class A,
Class B, and Class C shares. Class A shares are sold with a front-end sales
charge and a 1.00% contingent deferred sales charge on redemptions made within
eighteen months on an original purchase of $1 million to $5 million. 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 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.
DETERMINATION OF CLASS NET ASSET VALUES AND FINANCIAL HIGHLIGHTS: All income,
expenses (other than the Class B and Class C service and 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 service fee and 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.
NOTE 3. FEES AND COMPENSATION PAID TO AFFILIATES
................................................................................
ADMINISTRATION FEE: 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 FEE: Liberty Funds Services, Inc., formerly 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: Liberty Funds
Distributor, Inc., formerly Liberty Financial Investments, Inc., (the
Distributor), a subsidiary of the Administrator, is the Fund's principal
underwriter. During the six months ended December 31, 1998, the Fund has been
advised that the Distributor received contingent deferred sales charges (CDSC)
of none, $3,750 and none 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 Class B and Class C 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. The Distributor has voluntarily
agreed to waive a portion of the Class C share distribution fee so that it does
not exceed 0.15% annually.
The CDSC and the fees received from the 12b-1 plan are used principally as
repayment to the Distributor for amounts paid by the Distributor to dealers who
sold such shares.
EXPENSE LIMITS: The Administrator has agreed, until further notice, to waive
fees and bear certain Fund expenses to the extent that total expenses (inclusive
of the Fund's proportionate share of the Portfolio's expenses and exclusive of
service and distribution fees, commissions, taxes, and extraordinary expenses,
if any) exceed 0.75% annually of the Fund's average net assets.
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.
The Fund has an agreement with its custodian bank under which $8 of custodian
fees were reduced by balance credits applied during the six months ended
December 31, 1998. The Fund could have invested a portion of the assets utilized
in connection with the expense offset arrangements in an income producing asset
if it had not entered into such agreements.
NOTE 4. RESULTS OF SPECIAL MEETING OF SHAREHOLDERS (UNAUDITED)
................................................................................
On October 30, 1998 a Special Meeting of Shareholders of the Fund was held to
approve the following items, all as described in the Proxy Statement for the
Meeting. On August 21, 1998, the record date for the Meeting, the Fund had
outstanding 16,499,820 shares of beneficial interest. The votes cast at the
Meeting were as follows:
AUTHORITY
FOR WITHHELD
---------- -------
To elect a Board of Trustees:
Robert J. Birnbaum 10,623,977 296,186
Tom Bleasdale 10,623,977 296,186
John Carberry 10,623,977 296,186
Lora S. Collins 10,623,977 296,186
James E. Grinnell 10,623,977 296,186
Richard W. Lowry 10,623,977 296,186
Salvatore Macera 10,623,977 296,186
William Mayer 10,623,977 296,186
James L. Moody, Jr. 10,623,977 296,186
John J. Neuhauser 10,623,977 296,186
Thomas E. Stitzel 10,623,977 296,186
Robert L. Sullivan 10,623,977 296,186
Anne-Lee Verville 10,623,977 296,186
<PAGE>
COLONIAL MUNICIPAL MONEY MARKET FUND
FINANCIAL HIGHLIGHTS
Selected data for a share of each class outstanding throughout each period are
as follows: (Unaudited) Six months ended December 31 1998
(Unaudited)
Six months ended December 31
----------------------------
1998
Class A Class B Class C
------- ------- -------
Net asset value -
Beginning of period $ 1.000 $ 1.000 $ 1.000
------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (a)(c) 0.014 0.009 0.012 (d)
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.014) (0.009) (0.012)
------- ------- -------
Net asset value
End of period $ 1.000 $ 1.000 $ 1.000
------- ------- -------
Total return (f)(g) 1.41% (h) 0.90% (h) 1.21% (h)(i)
------- ------- -------
RATIOS TO AVERAGE NET ASSETS
Expenses (c) 0.75% (j) 1.75% (j) 1.15% (d)(j)
Fees and expenses waived or
borne by the Administrator (c) 0.91% (j) 0.91% (j) 0.91% (j)
Net investment income (c) 2.81% (j) 1.81% (j) 2.41% (d)(j)
Net assets at end of period (000) $12,974 $ 942 $ 279
(a) Net of fees and expenses waived or borne by
the Administrator
which amounted to: $ 0.005 $ 0.005 $ 0.005
(b) Class C shares were initially offered on August 1, 1997. Per share amounts
reflect activity from that date.
(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) Net of fees waived by the Distributor which amounted to $0.003 per share and
0.60% (annualized).
(e) Net of fees waived by the Distributor which amounted to $0.005 per share and
0.60% (annualized).
(f) Total return at net asset value assuming all distributions reinvested and no
contingent deferred sales charge.
(g) Had the Administrator not waived or reimbursed a portion of expenses, total
return would have been reduced.
(h) Not annualized.
(i) Had the Distributor not waived or reimbursed a portion of expenses, total
return would have been reduced.
(j) Annualized.
<PAGE>
COLONIAL MUNICIPAL MONEY MARKET FUND
FINANCIAL HIGHLIGHTS - CONT.
Year ended June 30
1998
Class A Class B Class C (b)
------- ------- -----------
$ 1.000 $ 1.000 $ 1.000
------- ------- -------
0.030 0.023 0.024 (e)
(0.030) (0.023) (0.024)
------- ------- -------
$ 1.000 $ 1.000 $ 1.000
------- ------- -------
3.03% 2.31% 2.40% (h)(i)
------- ------- -------
0.75% 1.48% 1.15% (e)(j)
0.70% 0.70% 0.70% (j)
3.02% 2.29% 2.62% (e)(j)
$16,389 $ 1,270 $ 176
$ 0.007 $ 0.007 $ 0.007
<PAGE>
COLONIAL MUNICIPAL MONEY MARKET FUND
FINANCIAL HIGHLIGHTS - CONT.
Selected data for a share of each class outstanding throughout each period are
as follows:
<TABLE>
<CAPTION>
Year ended June 30
------------------------------------------------------
1997 1996(b)
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) 0.029 (d) 0.021 (d) 0.030 (d) 0.020 (d)
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.029) (0.021) (0.030) (0.020)
------- ------- ------- -------
Net asset value -
End of period $ 1.000 $ 1.000 $ 1.000 $ 1.000
------- ------- ------- -------
Total return (e)(f) 2.98% 2.12% 3.04% 2.02%
------- ------- ------- -------
RATIOS TO AVERAGE NET ASSETS
Expenses 0.75% (d) 1.66% (d) 0.75% (d) 1.75% (d)
Fees and expenses waived or borne by
the Advisor/Administrator 0.46% (d) 0.46% (d) 0.84% (d) 0.84% (d)
Net investment income 2.94% (d) 2.03% (d) 3.00% (d) 2.00% (d)
Net assets at end of period (000) $18,450 $ 1,203 $19,676 $ 1,235
(a) Net of fees and expenses waived or borne by
the Advisor/Administrator
which amounted to: $ 0.005 $ 0.005 $ 0.008 $ 0.008
(b) Effective September 28, 1995, SR&F became the investment Advisor of the Fund.
(c) The Fund changed its fiscal year end from November 30 to June 30 in 1995.
(d) The per share amounts and ratios reflect income and expenses assuming inclusion of the Fund's
proportionate share of the income and expenses of SR&F Municipal Money Market Portfolio.
(e) Total return at net asset value assuming all distributions reinvested and no contingent deferred
sales charge.
(f) Had the Advisor/Administrator not waived or reimbursed a portion of expenses, total return would
have been reduced.
(g) Not annualized.
(h) Annualized.
</TABLE>
<PAGE>
COLONIAL MUNICIPAL MONEY MARKET FUND
FINANCIAL HIGHLIGHTS - CONT.
Period ended Year ended
June 30(c) November 30
-------------------------- -------------------------
1995 1994
Class A Class B Class A Class B
------- ------- ------- -------
$ 1.000 $ 1.000 $ 1.000 $ 1.000
------- ------- ------- -------
0.018 0.012 0.020 0.010
(0.018) (0.012) (0.020) (0.010)
------- ------- ------- -------
$ 1.000 $ 1.000 $ 1.000 $ 1.000
------- ------- ------- -------
1.80% (g) 1.20% (g) 2.00% 1.01%
------- ------- ------- -------
0.75% (h) 1.75% (h) 0.60% 1.60%
0.36% (h) 0.36% (h) 0.59% 0.59%
3.05% (h) 2.05% (h) 2.05% 1.05%
$24,675 $ 3,111 $28,808 $3,867
$ 0.002 $ 0.002 $ 0.006 $ 0.006
<PAGE>
COLONIAL MUNICIPAL MONEY MARKET FUND
FINANCIAL HIGHLIGHTS - CONT.
Selected data for a share of each class outstanding throughout each period are
as follows:
Year ended
November 30
------------------------
1993
Class A Class B
------- -------
Net asset value - Beginning of period $ 1.000 $ 1.000
------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (a) 0.017 0.009
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.017) (0.009)
------- -------
Net asset value - End of period $ 1.000 $ 1.000
------- -------
Total return (b)(c) 1.73% 0.93%
------- -------
RATIOS TO AVERAGE NET ASSETS
Expenses 0.75% 1.75%
Fees and expenses waived or borne by
the Advisor 0.50% 0.50%
Net investment income 1.69% 0.69%
Net assets at end
of period (000) $18,618 $ 908
(a) Net of fees and expenses waived or borne by
the Advisor which amounted to: $ 0.005 $ 0.005
(b) Total return at net asset value assuming all distributions reinvested and no
contingent deferred sales charge.
(c) Had the Advisor not waived or reimbursed a portion of expenses total return
would have been reduced.
<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 Liberty Funds Services 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 US
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.
LIBERTY 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 Funds Distributor,
Inc., call Monday to Friday, 8:30 a.m. to 6:30 p.m. ET.
BY MAIL
LIBERTY FUNDS SERVICES, INC.
P.O. BOX 1722
BOSTON, MA 02105-1722
<PAGE>
IMPORTANT INFORMATION ABOUT THIS REPORT
The Transfer Agent for Colonial Municipal Money Market Fund is:
Liberty Funds Services, 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
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. It 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's Performance Update.
* Effective October 1, 1998, Colonial Investors Service Center, Inc. - the
Transfer Agent for Colonial, Stein Roe Advisor and Newport Funds - will change
its name to Liberty Funds Services, Inc.
<PAGE>
TRUSTEES
ROBERT J. BIRNBAUM
Consultant (formerly Special Counsel, Dechert, Price & Rhoads; President and
Chief Operating Officer, New York Stock Exchange, Inc.; President, American
Stock Exchange Inc.)
TOM BLEASDALE
Retired (formerly Chairman of the Board and Chief Executive Officer, Shore Bank
& Trust Company)
JOHN CARBERRY
Senior Vice President of Liberty Financial Companies, Inc. (formerly Managing
Director, Salomon Brothers)
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)
SALVATORE MACERA
Private Investor (formerly Executive Vice President of Itek Corp. and President
of Itek Optical & Electronic Industries, Inc.)
WILLIAM E. MAYER
Partner, Development Capital, LLC (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, Chief Executive Officer and Director
Hannaford Bros. Co.)
JOHN J. NEUHAUSER
Dean, Boston College School of Management
THOMAS E. STITZEL
Professor of Finance, College of Business, Boise State University; Business
Consultant and Author
ROBERT L. SULLIVAN
Retired Partner, KPMG LLP (formerly Management Consultant, Saatchi and Saatchi
Consulting Ltd. and Principal and International Practice Director, Management
Consulting, Peat Marwick Main & Co.)
ANNE-LEE VERVILLE
Consultant (formerly General Manager, Global Education Industry, and President,
Applications Solutions Division, IBM Corporation)
[logo] L I B E R T Y
COLONIAL o CRABBE HUSON o NEWPORT o STEIN ROE ADVISOR
Liberty Funds Distributor, Inc. (C)1999
One Financial Center, Boston, MA 02111-2621, 1-800-426-3750
Visit us at www.libertyfunds.com
TM-03/459G-1298 (2/99) 99/95
