[GRAPHIC OMITTED]
NEWPORT JAPAN OPPORTUNITIES FUND Semiannual report
February 28, 1998
-------------------------------
Not FDIC May Lose Value
Insured No Bank Guarantee
-------------------------------
<PAGE>
- --------------------------------------------------------------------------------
NEWPORT JAPAN OPPORTUNITIES FUND
SEPTEMBER 1, 1997 - FEBRUARY 28, 1998
Investment Objective: Newport Japan Opportunities Fund seeks capital
appreciation by investing primarily in equity securities of Japanese companies.
The Fund is Designed to Offer:
o A portfolio of quality Japanese stocks
o Long-term growth potential
o Experienced investment management
Portfolio Manager Commentary: "Currency and economic turmoil in Southeast Asia
created difficulty among Japan's trading partners and had a negative impact on
the Japanese stock market. In this market environment, our active management
style helped the Fund to beat the Japan index by a wide margin and offer strong
performance relative to our peers."
-- David Smith
Newport Japan Opportunities Fund Performance
Class A Class B Class C Class Z
Inception Date 6/3/96 6/3/96 6/3/96 6/3/96
- --------------------------------------------------------------------------------
Six-month total returns, assuming (6.24)% (6.61)% (6.51)% (6.03)%
reinvestment of all distributions
and no sales charge or contingent
deferred sales charge (CDSC)
- --------------------------------------------------------------------------------
Six-month total returns, assuming (11.63)% (11.26)% (7.44)% (6.03)%
public offering price (POP) and
CDSC(1)
- --------------------------------------------------------------------------------
Net asset value per share at 2/28/98 $9.40 $9.27 $9.27 $9.44
- --------------------------------------------------------------------------------
(1) POP returns include the maximum sales charge of 5.75% for Class A shares.
The CDSC returns reflect the maximum charge of 5% and 1%, respectively, for
Class B and C shares. Past performance cannot predict future results. Returns
and value will fluctuate, resulting in a gain or loss on sale.
Top Five Holdings (as of 2/28/98)(2) Top Five Sectors (as of 2/28/98)(2,3)
1. Shohkoh Fund................4.8% 1. Consumer Cyclicals....... 19.5%
2. Murata Manuf. Co. Ltd. .....3.5% 2. Technologies...............18.8%
3. Nichiei Co., Ltd. ..........3.4% 3. Financials.................14.8%
4. Circle K Japan Co., Ltd. ...3.2% 4. Health Care................10.6%
5. Ito En Ltd. ................2.8% 5. Capital Goods...............7.9%
(2) Holdings and sector breakdowns are calculated as a percentage of total net
assets. Because the Fund is actively managed, there can be no guarantee the Fund
will continue to hold these securities or invest in these sectors in the future.
(3) Industry sectors in the following financial statements are based upon the
standard industrial classifications (SIC) as published by the U.S. Office of
Management and Budget. The sector classifications used on this page are based
upon Newport's defined criteria.
- --------------------------------------------------------------------------------
2
<PAGE>
- --------------------------------------------------------------------------------
PRESIDENT'S MESSAGE
TO FUND SHAREHOLDERS
[PHOTO OMITTED]
This report reflects on the investment environment and on your Fund's
performance for the six months ended February 28, 1998.
The big international economic story for the period was the turmoil in the
emerging markets of Southeast Asia. Despite market weakness resulting from the
crisis in Southeast Asia, several positive factors differentiate the Japanese
economy. To begin with, Japanese banks have limited loan exposure to the
troubled Tiger markets in Southeast Asia. Loans to Southeast Asia comprise
approximately 5% of the loan portfolios of large Japanese banks, with half of
these loans to subsidiaries of Japanese corporations. Secondly, Japanese
citizens have substantial personal liquid assets, potentially providing Japan
with the internal resources to stimulate stagnant demand and economic growth. In
addition, Japanese corporations have increased their focus on shareholder
rights, introduced incentive-based compensation programs for senior executives
and become more enthusiastic about buying back their own shares. Together, these
factors have the potential to boost Japanese stock prices.
The report that follows will provide you with a closer look at the Japanese
economy as well as your Fund manager's strategy for providing long-term growth
potential by investing in the Japanese companies.
Although investing in a single country fund entails special risks such as
currency fluctuations, limited diversification and adverse political, economic
or social developments, the professionals at Newport Fund Management conduct
thorough analysis to help manage these risks. Your investment in Newport Japan
Opportunities Fund should be just one part of a well-diversified portfolio
constructed with the help of your financial advisor. As always, we thank you for
giving us the opportunity to serve your investment needs.
Respectfully,
/s/ Harold W. Cogger
Harold W. Cogger
President
April 9, 1998
Because market conditions change frequently, there can be no assurance that the
trends described in this report will continue.
- --------------------------------------------------------------------------------
3
<PAGE>
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT REPORT
[PHOTO OMITTED]
David Smith is the portfolio manager of Newport Japan Opportunities Fund and is
senior vice president of Newport Fund Management, Inc.
Outperformance against benchmarks
For the six months ended February 28, 1998, the Japanese market continued to be
plagued by stagnant economic growth, due in part to the economic and currency
crises in Southeast Asia. Like most Japan funds, Newport Japan Opportunities
Fund was not immune to the Asian crisis. The Fund's total return for six months
on Class A shares was negative 6.24%. However, on a relative basis, the Fund
offered strong performance. Over the same period, the performance of the MSCI
Japan Index was negative 13.46%. Newport Japan Opportunities Fund finished in
the top quartile of its Lipper peer group.(1)
The Fund's outperformance is largely due to its active management style. Relying
on fundamental research and significant investment experience, we strive to find
opportunities in sectors often overlooked by the market. The result is a
carefully selected portfolio of fewer than 50 stocks, distinguishing the Fund
relative to its index-like peers.
The Fund's exposure to non-bank financials and select technology providers
helped it to offer strong relative performance over the period. We avoided large
banks and manufacturers, two sections which represent a large part of the
Japanese stock market and which have underperformed recently.
Non-bank financials add value to shareholders
The Fund's exposure to non-bank financials is one example of how our
understanding of Japanese culture and significant investment experience adds
value to shareholders. Non-bank financials are companies which make loans to
consumers for personal expenditures, similar to the way credit card companies
function in the United States.
In many cases, these companies are able to charge interest rates in excess of
25%, with a relatively low default rate. Most traditional banks do not make
loans to this segment of the market, creating a market niche for the non-bank
financials. In 1997, these companies were the best performing group in the
TOPIX2 Index, although they comprised only a small portion of that benchmark. In
contrast, shareholders of the Fund benefited from a near 15% weighting in
non-bank financials.
Technology stocks enjoy global leadership
We have a large commitment to the technology and technology-related area of our
portfolio -- because this is where Japanese companies enjoy global leadership.
Among the better-known companies, we own Sony Corporation. Sony comprises 2.4%
of the portfolio and is a market leader in terms of
- --------------------------------------------------------------------------------
4
<PAGE>
- --------------------------------------------------------------------------------
digitalization of the electronics industry. In an environment of reduced
consumer spending in Japan, Sony was still able to increase domestic sales by
12%.
The Fund also owns Union Tool, which comprises 2.4% of the portfolio, a
little-known company with 30% of the world market for the specialized drills
used in manufacturing circuit boards. As circuit boards have become smaller, the
drill bits have become smaller, more expensive and also more likely to break.
Union Tool is in the enviable position of holding a large market share of an
item where consumption goes up as technology improves.
We also feel this is an ideal time to participate in the Japanese software
industry, as personal computers have finally made their way to the desks of
Japanese employees. FujiSoft ABC, which comprises 2.1% of the portfolio, is
another of the Fund's holdings and is ideally positioned to serve Japanese
businesses as they computerize. Corporations do not have the internal expertise
to service their PCs, and have become dependent on outside sources like
FujiSoft. This company is a market leader poised to expand in an area where
there is little competition.
Outlook hopeful for a stimulating economic growth in 1998
In the near term, the returns of most Japanese stocks will be determined by the
government's progress in implementing economic reforms, and how quickly consumer
demand improves.
We believe that the Japanese government will utilize strong internal resources
to stimulate economic growth in 1998. After experiencing negative economic
growth in 1997, Japan is beginning to feel pressure from the global economic
community to increase domestic demand, potentially reducing their dependency on
exports, and importing more goods from other Southeast Asian economies. In the
second and third quarters of 1998, we anticipate the potential for tax
reductions and increased government spending, both likely to contribute to
economic growth.
Over time, we believe the combination of our significant investment experience
and active management style will add value to global investors seeking long-term
growth potential in Japan.
(1) Source: Lipper Analytical Services, Inc. Lipper rankings are based in the
Lipper Japanese Funds category. The Fund's Class Ashares ranking for the
six-month period is in the 1st quartile (rated 3 out of 33 funds) and in the 1st
quartile for the one-year period (rated 5 out of 30 funds).Rankings do not
include any sales charges. Performance for different share classes will vary
with fees associated with each class. Past performance cannot guarantee future
results.
(2) The TOPIX, also known as Tokyo Price Index, is a capitalization-weighted
index of all the companies listed on the First Section of the Tokyo Stock
Exchange. The index is supplemented by sub-indices of 33 industry sectors and
developed with a base index value of 100 as of 1/4/68. The index calculation
excludes temporary issues and preferred stocks.
- --------------------------------------------------------------------------------
5
<PAGE>
- --------------------------------------------------------------------------------
Newport Japan Opportunities Fund Investment Performance
vs. MSCI Japan Index
Change in Value of $10,000 from 6/30/96 - 2/28/98
Class A Shares based on NAV and POP
- --------------------------------------------------------------------------------
Average Annual Total Returns as of 2/28/98
Inception 6/3/96 NAV MOP
- -------------------------------------------
1 year 3.43% (2.51)%
- -------------------------------------------
Since inception (3.35) (6.58)
- -------------------------------------------
[The following plot points were represented by a line graph in the printed
materials.]
Label A B C
- --------------------------------------------------------------------------------
Label Japan A Shares
- --------------------------------------------------------------------------------
1
- --------------------------------------------------------------------------------
2 AS OF DATE NAV MOP MSCI Japan IX N
- --------------------------------------------------------------------------------
3 Jun 30, 96 10000 9425 10000
- --------------------------------------------------------------------------------
4 Jun 30, 96 10000 9425 10000
- --------------------------------------------------------------------------------
5 Jul 31, 96 9768 9206 9552
- --------------------------------------------------------------------------------
6 Aug 31, 96 9382 8842 9125
- --------------------------------------------------------------------------------
7 Sep 30, 96 9391 8851 9441
- --------------------------------------------------------------------------------
8 Oct 31, 96 8928 8414 8808
- --------------------------------------------------------------------------------
9 Nov 30, 96 9150 8624 8976
- --------------------------------------------------------------------------------
10 Dec 31, 96 9005 8487 8356
- --------------------------------------------------------------------------------
11 Jan 31, 97 8676 8177 7446
- --------------------------------------------------------------------------------
12 Feb 28, 97 8802 8296 7620
- --------------------------------------------------------------------------------
13 Mar 31, 97 8754 8250 7369
- --------------------------------------------------------------------------------
14 Apr 30, 97 9179 8651 7636
- --------------------------------------------------------------------------------
15 May 31, 97 10213 9625 8480
- --------------------------------------------------------------------------------
16 Jun 30, 97 10676 10062 9113
- --------------------------------------------------------------------------------
17 Jul 31, 97 11082 10445 8836
- --------------------------------------------------------------------------------
18 Aug 31, 97 9710 9152 8069
- --------------------------------------------------------------------------------
19 Sep 30, 97 9923 9352 7947
- --------------------------------------------------------------------------------
20 Oct 31, 97 9488 8942 7207
- --------------------------------------------------------------------------------
21 Nov 30, 97 9043 8523 6765
- --------------------------------------------------------------------------------
22 Dec 31, 97 8736 8234 6378
- --------------------------------------------------------------------------------
23 Jan 31, 98 9278 8745 6947
- --------------------------------------------------------------------------------
24 Feb 28, 98 9104 8581 6983
- --------------------------------------------------------------------------------
Class B Shares based on NAV and w/CDSC
- --------------------------------------------------------------------------------
Average Annual Total Returns as of 2/28/98
Inception 6/3/96 NAV w/CDSC
- -------------------------------------------
1 year 2.57% (2.43)%
- -------------------------------------------
Since inception (4.12) (6.34)
- -------------------------------------------
[The following plot points were represented by a line graph in the printed
materials.]
Label A B C
- --------------------------------------------------------------------------------
Label Japan B Shares
- --------------------------------------------------------------------------------
1
- --------------------------------------------------------------------------------
2 AS OF DATE NAV MOP MSCI Japan IX N
- --------------------------------------------------------------------------------
3 Jun 30, 96 10000 10000 10000
- --------------------------------------------------------------------------------
4 Jul 31, 96 9768 9768 9552
- --------------------------------------------------------------------------------
5 Aug 31, 96 9371 9371 9125
- --------------------------------------------------------------------------------
6 Sep 30, 96 9381 9381 9441
- --------------------------------------------------------------------------------
7 Oct 31, 96 8907 8907 8808
- --------------------------------------------------------------------------------
8 Nov 30, 96 9120 9120 8976
- --------------------------------------------------------------------------------
9 Dec 31, 96 8975 8975 8356
- --------------------------------------------------------------------------------
10 Jan 31, 97 8646 8646 7446
- --------------------------------------------------------------------------------
11 Feb 28, 97 8762 8762 7620
- --------------------------------------------------------------------------------
12 Mar 31, 97 8704 8704 7369
- --------------------------------------------------------------------------------
13 Apr 30, 97 9120 9120 7636
- --------------------------------------------------------------------------------
14 May 31, 97 10145 10145 8480
- --------------------------------------------------------------------------------
15 Jun 30, 97 10600 10600 9113
- --------------------------------------------------------------------------------
16 Jul 31, 97 10996 10996 8836
- --------------------------------------------------------------------------------
17 Aug 31, 97 9623 9623 8069
- --------------------------------------------------------------------------------
18 Sep 30, 97 9836 9836 7947
- --------------------------------------------------------------------------------
19 Oct 31, 97 9400 9400 7207
- --------------------------------------------------------------------------------
20 Nov 30, 97 8956 8956 6765
- --------------------------------------------------------------------------------
21 Dec 31, 97 8648 8648 6378
- --------------------------------------------------------------------------------
22 Jan 31, 98 9171 9171 6947
- --------------------------------------------------------------------------------
23 Feb 28, 98 8987 8629 6983
- --------------------------------------------------------------------------------
Class C Shares based on NAV and w/CDSC
- --------------------------------------------------------------------------------
Average Annual Total Returns as of 2/28/98
Inception 6/3/96 NAV w/CDSC
- -------------------------------------------
1 year 2.57% 1.57%
- -------------------------------------------
Since inception (4.12) (4.12)
- -------------------------------------------
[The following plot points were represented by a line graph in the printed
materials.]
Label A B
- --------------------------------------------------------------------------------
Label Japan C Shares
- --------------------------------------------------------------------------------
1
- --------------------------------------------------------------------------------
2 AS OF DATE NAV MSCI Japan IX N
- --------------------------------------------------------------------------------
3 Jun 30, 96 10000 10000
- --------------------------------------------------------------------------------
4 Jul 31, 96 9768 9552
- --------------------------------------------------------------------------------
5 Aug 31, 96 9371 9125
- --------------------------------------------------------------------------------
6 Sep 30, 96 9381 9441
- --------------------------------------------------------------------------------
7 Oct 31, 96 8907 8808
- --------------------------------------------------------------------------------
8 Nov 30, 96 9110 8976
- --------------------------------------------------------------------------------
9 Dec 31, 96 8985 8356
- --------------------------------------------------------------------------------
10 Jan 31, 97 8636 7446
- --------------------------------------------------------------------------------
11 Feb 28, 97 8762 7620
- --------------------------------------------------------------------------------
12 Mar 31, 97 8704 7369
- --------------------------------------------------------------------------------
13 Apr 30, 97 9120 7636
- --------------------------------------------------------------------------------
14 May 31, 97 10145 8480
- --------------------------------------------------------------------------------
15 Jun 30, 97 10590 9113
- --------------------------------------------------------------------------------
16 Jul 31, 97 10986 8836
- --------------------------------------------------------------------------------
17 Aug 31, 97 9613 8069
- --------------------------------------------------------------------------------
18 Sep 30, 97 9836 7947
- --------------------------------------------------------------------------------
19 Oct 31, 97 8400 7207
- --------------------------------------------------------------------------------
20 Nov 30, 97 8956 6765
- --------------------------------------------------------------------------------
21 Dec 31, 97 8638 6378
- --------------------------------------------------------------------------------
22 Jan 31, 98 9171 6947
- --------------------------------------------------------------------------------
23 Feb 28, 98 8987 6983
- --------------------------------------------------------------------------------
A hypothetical $10,000 investment in Class Z shares made on 6/30/96 at net asset
value (NAV) would amount to $9,143 on 2/28/98.
The Morgan Stanley Capital International Japan Index (MSCI Japan) is an
unmanaged index and tracks the performance of Japanese stocks. Unlike mutual
funds, indexes are not investments, do not incur fees or expenses and it is not
possible to invest in an index.
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. NAV returns do not include sales charges
or contingent deferred sales charges (CDSC). Public offering price (POP) returns
include the maximum initial sales charge of 5.75% for Class A shares. The CDSC
returns reflect the applicable sales charges of: 5% for one year and 4% since
inception for Class B shares, and 1% for one year for Class C shares.
- --------------------------------------------------------------------------------
6
<PAGE>
INVESTMENT PORTFOLIO
FEBRUARY 28, 1998 (UNAUDITED, IN THOUSANDS)
COMMON STOCKS - 85.0% SHARES VALUE
================================================================================
CONSTRUCTION - 1.0%
Building Construction
Sawako Corp. 22 $ 160
-----------
- --------------------------------------------------------------------------------
FINANCE, INSURANCE & REAL ESTATE - 16.4%
Depository Institutions - 1.7%
Terumo Corp. 18 254
-----------
Holding & Other Investment Office - 0.0%
Takefuji Corp. (a) 1
-----------
Nondepository Credit Institutions - 14.7%
Acom Co., Ltd. 5 280
Credit Saison Co., Ltd. 18 429
Nichiei Co., Ltd. 5 520
Promise Co., Ltd. 5 277
Shohkoh Fund 2 735
-----------
2,241
-----------
- --------------------------------------------------------------------------------
MANUFACTURING - 47.6%
Chemicals & Allied Products - 5.6%
Canon Chemicals Inc. (a) 4
Sankyo Co., Ltd. 16 430
Takeda Chemical Industries Ltd. 15 417
-----------
851
-----------
Communications Equipment - 7.1%
Matsushita Communication Industrial Co. 10 328
Matsushita-Kotobuki Electronics Industries 14 383
Sony Corp. 4 371
-----------
1,082
-----------
Electrical Industrial Equipment - 2.2%
Nidec Corp. 7 334
-----------
Electronic & Electrical Equipment - 2.8%
Minebea Co., Ltd. 38 422
-----------
Electronic Components - 8.0%
Murata Manufacturing Co., Ltd. 17 537
Rohm Co., Ltd. 3 297
TDK Corp. 5 383
-----------
1,217
-----------
7
<PAGE>
Investment Portfolio/February 28, 1998
- --------------------------------------------------------------------------------
COMMON STOCKS - CONT. SHARES VALUE
================================================================================
MANUFACTURING - CONT.
Food & Kindred Products - 2.8%
Ito En Ltd. 15 $ 432
-----------
Machinery & Computer Equipment - 5.5%
Canon Inc. 17 390
SMC Corp. 1 87
Union Tool 11 362
-----------
839
-----------
Measuring & Analyzing Instruments - 11.1%
Fuji Photo Film Co., Ltd. 10 393
Hogy Medical Co. 7 210
Hoya Corp. 11 292
Keyence Corp. 2 258
Noritsu Koki Co., Ltd. 7 224
Ricoh Co., Ltd. 30 321
-----------
1,698
-----------
Miscellaneous Manufacturing - 2.5%
Nintendo Corp., Ltd. 4 377
-----------
Transportation Equipment - 0.0%
FCC Co., Ltd. (a) 4
-----------
- --------------------------------------------------------------------------------
RETAIL TRADE - 8.2%
Food Stores - 3.2%
Circle K Japan Co., Ltd. 10 493
-----------
General Merchandise Stores - 3.3%
Fujimi, Inc. 4 180
Ryohin Keikaku Co., Ltd. 4 317
-----------
497
-----------
Miscellaneous Retail - 1.7%
Matsumotokiyoshi Co. 7 263
-----------
- --------------------------------------------------------------------------------
SERVICES - 9.2%
Amusement & Recreation - 1.0%
Namco 6 150
-----------
Auto Repair, Rental & Parking - 0.9%
Park24 Co., Ltd. 11 144
-----------
8
<PAGE>
Investment Portfolio/February 28, 1998
- --------------------------------------------------------------------------------
Business Services - 3.5%
Bellsystem 24 Inc. 1 $ 172
Orix Corp. 5 365
-----------
537
-----------
Computer Software - 2.0%
Fuji Soft ABC Inc. 9 303
-----------
Engineering, Accounting, Research & Management - 1.8%
Meitec Corp. 9 278
-----------
- --------------------------------------------------------------------------------
TRANSPORTATION, COMMUNICATION, ELECTRIC,
GAS & SANITARY SERVICES - 0.9%
Communications
NTT Data Communications Systems Co. (a) 146
-----------
- --------------------------------------------------------------------------------
WHOLESALE TRADE - 1.7%
Durable Goods
Mitsui & Co. 40 257
-----------
TOTAL COMMON STOCKS (cost of $12,617)(b) 12,980
-----------
SHORT-TERM OBLIGATIONS - 7.6% PAR
================================================================================
Repurchase agreement with ABN AMRO Chicago
Corp., dated 02/27/98, due 03/02/98 at
5.650%, collateralized by U. S. Treasury notes
with various maturities to 2027, market value
$1,195 (repurchase proceeds $1,170) $ 1,169 1,169
-----------
OTHER ASSETS & LIABILITIES, NET - 7.4% 1,124
===============================================================================
NET ASSETS - 100% $ 15,273
===========
NOTES TO INVESTMENT PORTFOLIO:
===============================================================================
(a) Rounds to less than one.
(b) Cost for federal income tax purposes is $12,661.
See notes to financial statements.
9
<PAGE>
STATEMENT OF ASSETS & LIABILITIES
FEBRUARY 28, 1998 (UNAUDITED)
(in thousands except for per share amounts and footnotes)
ASSETS
Investments at value (cost $12,617) $ 12,980
Short-term obligations 1,169
------------
14,149
Cash including foreign currencies (cost $769) 768
Receivable for:
Fund shares sold 274
Investments sold 162
Expense reimbursement due from
Adviser/Administrator 10
Dividends 4
Deferred organization expenses 1
Other 4 1,223
----------- ------------
Total Assets 15,372
LIABILITIES
Payable for:
Fund shares repurchased 79
Accrued:
Management fee 12
Administration fee 3
Transfer agent fee 3
Bookkeeping fee 2
-----------
Total Liabilities 99
------------
NET ASSETS $ 15,273
------------
Net asset value & redemption price per share -
Class A ($4,352/463) $9.40
------------
Maximum offering price per share - Class A
($9.40/0.9425) $9.97(a)
------------
Net asset value & offering price per share -
Class B ($6,479/699) $9.27(b)
------------
Net asset value & offering price per share -
Class C ($2,854/308) $9.27(b)
------------
Net asset value, offering & redemption price
per share - Class Z ($1,588/168) $9.44
------------
(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.
10
<PAGE>
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED FEBRUARY 28, 1998
(UNAUDITED)
(in thousands)
INVESTMENT INCOME
Dividends $ 26
Interest 39
------------
Total Investment Income (net of nonrebatable
foreign taxes withheld at source which
amounted to $5) 65
EXPENSES
Management fee $ 73
Administration fee 19
Service fee - Class A, Class B, Class C 17
Distribution fee - Class B 24
Distribution fee - Class C 11
Transfer agent fee 19
Bookkeeping fee 14
Trustees fee 4
Audit fee 9
Legal fee 2
Custodian fee 3
Registration fee 30
Reports to shareholders 3
Other 3
-----------
231
Fees and expenses waived or borne by the
Adviser/Administrator (45) 186
----------- ------------
Net Investment Loss (121)
------------
NET REALIZED & UNREALIZED GAIN (LOSS) ON PORTFOLIO POSITIONS
Net realized loss:
Investments (1,301)
Foreign currency transactions (26)
-----------
Net Realized Loss (1,327)
Net unrealized appreciation
during the period on:
Investments 372
Foreign currency transactions 15
-----------
Net Unrealized Appreciation 387
------------
Net Loss (940)
------------
Decrease in Net Assets from Operations $ (1,061)
============
See notes to financial statements.
11
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
Six months Year
ended ended
(in thousands) February 28 August 31
=========== ============
INCREASE (DECREASE) IN NET ASSETS 1998 1997 (a)
Operations:
Net investment loss $ (121) $ (113)
Net realized gain (loss) (1,327) 15
Net unrealized appreciation 387 103
----------- ------------
Net Increase (Decrease) from Operations (1,061) 5
----------- ------------
Distributions:
From net realized gains - Class A (10) --
In excess of net realized gains - Class A (b) --
From net realized gains - Class B (15) --
In excess of net realized gains - Class B (b) --
From net realized gains - Class C (7) --
In excess of net realized gains - Class C (b) --
From net realized gains - Class Z (3) --
In excess of net realized gains - Class Z (b) --
----------- ------------
(1,096) --
----------- ------------
Fund Share Transactions:
Receipts for shares sold - Class A 3,411 4,369
Value of distributions reinvested - Class A 9 --
Cost of shares repurchased - Class A (2,823) (1,374)
----------- ------------
597 2,995
----------- ------------
Receipts for shares sold - Class B 3,082 7,140
Value of distributions reinvested - Class B 13 --
Cost of shares repurchased - Class B (2,436) (2,125)
----------- ------------
659 5,015
----------- ------------
Receipts for shares sold - Class C 1,455 3,334
Value of distributions reinvested - Class C 6 --
Cost of shares repurchased - Class C (1,377) (709)
----------- ------------
84 2,625
----------- ------------
Receipts for shares sold - Class Z 211 250
Value of distributions reinvested - Class Z 4 --
Cost of shares repurchased - Class Z (23) (2)
----------- ------------
192 248
----------- ------------
Net Increase from Fund Share
Transactions 1,532 10,883
----------- ------------
Total Increase 436 10,888
NET ASSETS
Beginning of period 14,837 3,949
----------- ------------
End of period (including accumulated
net investment loss of $214 and $61,
respectively) $ 15,273 $ 14,837
----------- ------------
(a) Effective July 1, 1997, Class D shares were redesignated Class C shares.
(b) Rounds to less than one.
See notes to financial statements.
12
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS - CONT.
(Unaudited)
Six months Year
ended ended
(in thousands) February 28 August 31
=========== ============
1998 1997 (a)
NUMBER OF FUND SHARES
Sold - Class A 349 432
Issued for distributions reinvested - Class A 1 --
Repurchased - Class A (293) (136)
----------- ------------
57 296
----------- ------------
Sold - Class B 321 716
Issued for distributions reinvested - Class B 1 --
Repurchased - Class B (254) (208)
----------- ------------
68 508
----------- ------------
Sold - Class C 152 325
Issued for distributions reinvested - Class C 1 --
Repurchased - Class C (147) (72)
----------- ------------
6 253
----------- ------------
Sold - Class Z 22 23
Issued for distributions reinvested - Class Z (b) --
Repurchased - Class Z (2) (b)
----------- ------------
20 23
----------- ------------
(a) Effective July 1, 1997, Class D shares were redesignated Class C shares.
(b) Rounds to less than one.
See notes to financial statements.
13
<PAGE>
NOTES TO FINANCIAL STATEMENTS
FEBRUARY 28, 1998 (UNAUDITED)
NOTE 1. INTERIM FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
In the opinion of management of Newport Japan Opportunities Fund (the Fund), a
series of Colonial Trust II, the accompanying financial statements contain all
normal and recurring adjustments necessary for the fair presentation of the
financial position of the Fund at February 28, 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 capital appreciation by investing primarily in equity securities of
Japanese companies. The Fund may issue an unlimited number of shares. The Fund
offers four classes of shares: Class A, Class B, Class C, and Class Z. 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. Effective July 1, 1997, Class D shares were
redesignated Class C shares. Class C shares are subject to a contingent deferred
sales charge on redemptions made within one year after purchase and an annual
distribution fee. Class Z shares are offered continuously at net asset value.
There are certain restrictions on the purchase of Class Z shares, please refer
to the prospectus.
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 period. Actual results
could differ from those estimates. The following is a summary of significant
accounting policies that are 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. In addition,
if the values of foreign securities have been materially affected by events
occurring after the closing of a foreign market, the foreign securities may be
valued at their current value.
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.
14
<PAGE>
Notes to Financial Statements/February 28, 1998
- --------------------------------------------------------------------------------
The value of all assets and liabilities quoted in foreign currencies are
translated into U.S. dollars at that day's exchange rates.
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 A, Class B and Class C service fees and 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.
The per share data was calculated using average shares outstanding during the
period. In addition, Class A, Class B and Class C net investment income per
share data reflects the service fee per share applicable to Class A, Class B and
Class C shares and the distribution fee applicable to Class B and Class C shares
only.
Class A, Class B and Class C ratios are calculated by adjusting the expense and
net investment income ratios for the Fund for the entire period by the service
fee applicable to Class A, Class B and Class C shares and 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.
Deferred organization expenses: The Fund incurred $1,000 of expenses in
connection with its organization. These expenses were deferred and are being
amortized on a straight-line basis over five years.
Distributions to shareholders: Distributions to shareholders are recorded on the
ex-date.
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 fluctuations 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.
15
<PAGE>
Notes to Financial Statements/February 28, 1998
- --------------------------------------------------------------------------------
NOTE 2. ACCOUNTING POLICIES - CONT.
- --------------------------------------------------------------------------------
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) from 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
contracts are used to minimize the exposure to foreign exchange rate
fluctuations during the period between trade and settlement date of the
contracts. The Fund may also enter into forward currency contracts to hedge
certain other foreign currency denominated assets. 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 is 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 nonrebatable 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.
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: Newport Fund Management (the Adviser) is the investment Adviser
of the Fund and receives a monthly fee equal to 0.95% annually of the Fund's
average net assets.
Administration fee: Colonial Management Associates, Inc. (the Administrator), an
affiliate of the Adviser, provides accounting and other services for a monthly
fee equal to 0.25% annually of the Fund's average net assets.
16
<PAGE>
Notes to Financial Statements/February 28, 1998
- --------------------------------------------------------------------------------
Bookkeeping fee: The Administrator provides bookkeeping and pricing services for
$27,000 per year plus 0.035% of the Fund's average net assets over $50 million.
Transfer agent: Colonial Investors Service Center, Inc. (the Transfer Agent), an
affiliate of the Administrator, provides shareholder services for a monthly fee
equal to 0.25% annually of the Fund's average net assets and receives
reimbursement for certain out of pocket expenses.
Effective October 1, 1997 and continuing through September 30, 1998, the
Transfer Agent fee will be reduced by 0.0012% in cumulative monthly increments,
resulting in a decrease in the fee from 0.25% to 0.236% annually.
Underwriting discounts, service and distribution fees: Liberty Financial
Investments, Inc. (the Distributor), a subsidiary of the Administrator, is the
Fund's principal underwriter. For the six months ended February 28, 1998, the
Fund has been advised that the Distributor retained net underwriting discounts
of $3,290 on sales of the Fund's Class A shares and received contingent deffered
sales charges (CDSC) of $33,161 and $3,757 on Class B and Class C share
redemptions, respectively.
The Fund has adopted a 12b-1 plan which requires it to pay the Distributor a
service fee equal to 0.25% annually on Class A, 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 only.
The CDSC and the fees received from the 12b-1 plan are used principally as
repayment to the Distributor for amounts paid by the Distributor to dealers who
sold such shares.
Expense limits: The Adviser/Administrator have agreed, until further notice, to
waive fees and bear certain Fund expenses to the extent that total expenses
(exclusive of service fees, distribution fees, brokerage commissions, interest,
taxes and extraordinary expenses, if any) exceed 1.75% annually of the Fund's
average net assets.
Other: The Fund pays no compensation to its officers, all of whom are employees
of the Adviser or Administrator.
The Fund's Trustees may participate in a deferred compensation plan which may be
terminated at any time. Obligations of the plan will be paid solely out of the
Fund's assets.
NOTE 4. PORTFOLIO INFORMATION
- --------------------------------------------------------------------------------
Investment activity: During the six months ended February 28, 1998, purchases
and sales of investments, other than short-term obligations, were $2,081,236 and
$1,658,995, respectively.
17
<PAGE>
Notes to Financial Statements/February 28, 1998
- --------------------------------------------------------------------------------
NOTE 4. PORTFOLIO INFORMATION - CONT.
- --------------------------------------------------------------------------------
Unrealized appreciation (depreciation) at February 28, 1998, based on cost of
investments for federal income tax purposes was:
Gross unrealized appreciation $ 1,448,617
Gross unrealized depreciation (1,129,778)
--------------
Net unrealized appreciation $ 318,839
==============
Other: 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 currency exchange or
other foreign governmental laws or restrictions.
The Fund may focus its investments in certain industries, subjecting it to
greater risk than a fund that is more diversified.
NOTE 5. LINE OF CREDIT
- --------------------------------------------------------------------------------
The Fund may borrow up to 10% of its 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 February 28, 1998.
NOTE 6. OTHER RELATED PARTY TRANSACTIONS
- --------------------------------------------------------------------------------
At February 28, 1998, the Fund had one shareholder, Liberty Financial Companies,
who owned greater than 5% of the Fund's shares outstanding.
NOTE 7. COMPOSITION OF NET ASSETS
- --------------------------------------------------------------------------------
Capital paid in $ 16,419
Accumulated net investment loss (214)
Accumulated net realized loss (1,296)
Net unrealized appreciation on:
Investments 363
Foreign currency transactions 1
--------------
$ 15,273
==============
18
<PAGE>
FINANCIAL HIGHLIGHTS
Selected data for a share of each class outstanding throughout each period
are as follows:
<TABLE>
<CAPTION>
(Unaudited)
Six months ended February 28
===================================================
1998
Class A Class B Class C Class Z
--------- --------- ---------- ----------
<S> <C> <C> <C> <C>
Net asset value -
Beginning of period $ 10.050 $ 9.950 $ 9.940 $ 10.070
--------- --------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (a)(b) (0.055) (0.090) (0.091) (0.043)
Net realized and
unrealized loss (0.573) (0.568) (0.557) (0.565)
--------- --------- ---------- ----------
Total from Investment
Operations (0.628) (0.658) (0.648) (0.608)
--------- --------- ---------- ----------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net realized gains (0.022) (0.022) (0.022) (0.022)
In excess of net
realized gains -- -- -- --
--------- --------- ---------- ----------
Total Distributions
Declared to Shareholders (0.022) (0.022) (0.022) (0.022)
--------- --------- ---------- ----------
Net asset value -
End of period $ 9.400 $ 9.270 $ 9.270 $ 9.440
--------- --------- ---------- ----------
Total return (c)(d)(e) (6.24)% (6.61)% (6.51)% (6.03)%
--------- --------- ---------- ----------
RATIOS TO AVERAGE NET ASSETS
Expenses (f)(g) 2.00% 2.75% 2.75% 1.75%
Net investment loss (f)(g) (1.15)% (1.90)% (1.90)% (0.90)%
Fees and expenses
waived or borne by the
Adviser/Administrator (f)(g) 0.59% 0.59% 0.59% 0.59%
Portfolio turnover (e) 12% 12% 12% 12%
Average commission rate $ 0.0670 $ 0.0670 $ 0.0670 $ 0.0670
Net assets at end
of period (000) $ 4,352 $ 6,479 $ 2,854 $ 1,588
(a) Net of fees and expenses waived or borne by the Adviser/Administrator
which amounted to: $ 0.028 $ 0.028 $ 0.028 $ 0.028
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total return at net asset value assuming all distributions reinvested and
no initial sales charge or contingent deferred sales charge.
(d) Had the Adviser/Administrator not waived or reimbursed a portion of
expenses, total return would have been reduced.
(e) Not annualized.
(f) The benefits derived from custody credits and directed brokerage arrange-
ments had no impact.
(g) Annualized.
</TABLE>
19
<PAGE>
FINANCIAL HIGHLIGHTS - CONT.
Selected data for a share of each class outstanding throughout each period are
as follows:
Year ended August 31
================================================
1997
Class A Class B Class C (c) Class Z
--------- ---------- --------- ----------
Net asset value -
Beginning of period $ 9.710 $ 9.690 $ 9.690 $ 9.720
--------- ---------- --------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (a)(b) (0.094) (0.170) (0.170) (0.069)
Net realized and
unrealized gain (loss) 0.434 0.430 0.420 0.419
--------- ---------- --------- ----------
Total from Investment
Operations 0.340 0.260 0.250 0.350
--------- ---------- --------- ----------
Net asset value -
End of period $10.050 $ 9.950 $ 9.940 $10.070
========= ========== ========= ==========
Total return (e)(f) 3.50% 2.68% 2.58% 3.60%
========= ========== ========= ==========
RATIOS TO AVERAGE NET ASSETS
Expenses (h) 2.00% 2.75% 2.75% 1.75%
Net investment loss (h) (0.93)% (1.68)% (1.68)% (0.68)%
Fees and expenses
waived or borne by the
Adviser/Administrator (h) 1.79% 1.79% 1.79% 1.79%
Portfolio turnover 20% 20% 20% 20%
Average commission rate $0.1479 $0.1479 $0.1479 $0.1479
Net assets at end
of period (000) $ 4,073 $ 6,275 $ 3,001 $ 1,488
(a) Net of fees and expenses waived or borne by the Adviser/Administrator
which amounted to: $ 0.180 $ 0.180 $ 0.180 $ 0.180
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Effective July 1, 1997, Class D shares were redesignated Class C shares.
(d) The Fund commenced investment operations on June 3, 1996. (e) Total return
at net asset value assuming all distributions reinvested and no initial
sales charge or contingent deferred sales charge.
(f) Had the Adviser/Administrator not waived or reimbursed a portion of
expenses, total return would have been reduced.
(g) Not annualized.
(h) The benefits derived from custody credits and directed brokerage
arrangements had no impact.
(i) Annualized.
20
<PAGE>
FINANCIAL HIGHLIGHTS - CONT.
Selected data for a share of each class outstanding throughout each period are
as follows:
Period ended August 31
==============================================================
1996 (d)
Class A Class B Class C Class Z
--------- --------- --------- ---------
$ 10.000 $ 10.000 $ 10.000 $ 10.000
--------- --------- --------- ---------
(0.016) (0.034) (0.034) (0.010)
(0.274) (0.276) (0.276) (0.270)
--------- --------- --------- ---------
(0.290) (0.310) (0.310) (0.280)
--------- --------- --------- ---------
$ 9.710 $ 9.690 $ 9.690 $ 9.720
========= ========= ========= =========
(2.90)%(g) (3.10)%(g) (3.10)%(g) (2.80)%(g)
========= ========= ========= =========
2.00% (i) 2.75% (i) 2.75% (i) 1.75% (i)
(0.66)%(i) (1.41)%(i) (1.41)%(i) (0.41)%(i)
9.13% (i) 9.13% (i) 9.13% (i) 9.13% (i)
-- -- -- --
$ 0.1794 $ 0.1794 $ 0.1794 $ 0.1794
$ 1,066 $ 1,197 $ 472 $ 1,214
$ 0.230 $ 0.230 $ 0.230 $ 0.230
21
<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 Financial Investments, 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 Financial Investments 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 Financial Investments. 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.
22
<PAGE>
IMPORTANT INFORMATION ABOUT THIS REPORT
The Transfer Agent for Newport Japan Opportunities Fund is:
Colonial Investors Service Center, Inc.
P.O. Box 1722
Boston, MA 02105-1722
1-800-345-6611
Newport Japan Opportunities Fund mails one shareholder report to each
shareholder address. If you would like more than one report, please call
1-800-426-3750 to order additional reports.
This report has been prepared for shareholders of Newport Japan Opportunities
Fund. It may also be used as sales literature when preceded or accompanied by
the current prospectus which provides sales charges, investment objectives and
operating policies of the Fund and with the most recent copy of Liberty
Financial Investment's Performance Update.
23
<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, Nessen, Kamin & Frankel)
JAMES E. GRINNELL
Private Investor (formerly Senior Vice President-Operations, The Rockport
Company)
WILLIAM D. IRELAND, JR.
Retired (formerly Chairman of the Board, Bank of New England-Worcester)
RICHARD W. LOWRY
Private Investor (formerly Chairman and Chief Executive Officer, U.S. Plywood
Corporation)
WILLIAM E. MAYER
Partner, Development Capital, L.L.C. (formerly Dean, College of Business and
Management, University of Maryland; Dean, Simon Graduate School of Business,
University of Rochester; Chairman and Chief Executive Officer, 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
GEORGE L. SHINN
Financial Consultant (formerly Chairman, Chief Executive Officer and Consultant,
The First Boston Corporation)
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.)
SINCLAIR WEEKS, JR.
Chairman of the Board, Reed & Barton Corporation
[LOGO] LIBERTY FINANCIAL INVESTMENTS, INC. (C)1988
Distributor for Colonial Funds, Stein Roe Advisor Funds and Newport Funds
One Financial Center, Boston, MA 02111-2621
Visit us at www.libertyfunds.com
JF-03/934E-0298 M (4/98) 98/368
- --------------------------------------------------------------------------------
