<PAGE>
[graphic omitted]
- -----------------------------------------
NEWPORT TIGER CUB FUND SEMIANNUAL REPORT
- -----------------------------------------
February 28, 1999
----------------------------
Not FDIC May Lose Value
Insured No Bank Guarantee
----------------------------
<PAGE>
NEWPORT TIGER CUB FUND HIGHLIGHTS
SEPTEMBER 1, 1998 - FEBRUARY 28, 1999
INVESTMENT OBJECTIVE: Newport Tiger Cub Fund seeks capital appreciation by
investing primarily in equity securities of small companies (i.e., companies
with equity market capitalizations of U.S. $1 billion or less) located in the
nine Tiger markets of Asia: Hong Kong, Singapore, South Korea, Taiwan, Malaysia,
Thailand, Indonesia, The People's Republic of China and the Philippines.
THE FUND IS DESIGNED TO OFFER:
|X| Access to stocks of entrepreneurial companies in Southeast Asia
|X| Aggressive long-term growth potential
|X| Experienced investment management
PORTFOLIO MANAGER COMMENTARY: "Asian market performance improved dramatically
during the past six months, as global investors began to recognize significant
value in Asian companies during this period of economic turmoil. This was
reflected in the Fund's performance." - Robert Cameron
NEWPORT TIGER CUB FUND PERFORMANCE(1)
CLASS A CLASS B CLASS C CLASS Z
Inception date 6/3/96 6/3/96 6/3/96 6/3/96
- --------------------------------------------------------------------------------
Six-month distributions declared
per share $0.005 $0.000 $0.000 $0.023
- --------------------------------------------------------------------------------
Six-month total returns, assuming 39.61% 38.90% 39.43% 39.57%
reinvestment of all distributions and
no sales charge or CDSC
- --------------------------------------------------------------------------------
Six-month total returns, assuming 31.58% 33.90% 38.43% 39.57%
POP and CDSC(2)
- --------------------------------------------------------------------------------
Net asset value per share at 2/28/99 $5.44 $5.32 $5.34 $5.45
TOP FIVE HOLDINGS(3) COUNTRY BREAKDOWN(3)
(as of 2/28/99) (as of 2/28/99)
- --------------------------------------------------------------------------------
1. SM Prime Holdings, Inc. ...... 6.2% 1. Hong Kong ..... 47.6%
2. Four Seas. Merc. Hldgs. Ltd .. 6.1% 2. Singapore ..... 21.2%
3. Thai Union Froz. Products .... 5.8% 3. Thailand ..... 10.0%
4. Avimo Singapore Ltd ...... 5.8% 4. Philippines ... 9.4%
5. Johnson Electric Holdings Ltd 5.5% 5. Indonesia ..... 7.8%
(1) Performance results reflect any voluntary waivers or reimbursement of Fund
expenses by the Advisor or its affiliates. Absent these waivers or
reimbursement arrangements, performance results would have been lower.
(2) Public offering price (POP) returns include the maximum sales charge of
5.75% for Class A shares. Contingent deferred sales charge (CDSC) returns
reflect the maximum charges of 5% and 1% for Class B and C shares,
respectively. Past performance cannot predict future results. Returns and
value of an investment will fluctuate, resulting in a gain or loss on sale.
(3) Country and holdings 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 countries in
the future.
<PAGE>
PRESIDENT'S MESSAGE
TO FUND SHAREHOLDERS
[Photo of Stephen E. Gibson]
I am pleased to present the semiannual report for Newport Tiger Cub Fund for the
six-month period ended February 28, 1999.
Although Asian stocks continued to suffer from local financial and economic
conditions through the summer of 1998, Asian market performance turned around
dramatically last fall. Interest rate cuts in the U.S. caused positive reactions
among global investors and spurred market rallies both here and abroad.
The gains in Asian stocks during the past several months are encouraging,
particularly for Newport Tiger Cub Fund investors who have remained patient.
While improving conditions are beginning to draw investors back to Asia, it is
important to note that the economies of many Asian countries are still in the
process of recovering. As conditions improve, we believe global investment
capital should continue to flow into these markets.
Newport Fund Management has established itself as a leader in Asian market
investing over the course of numerous economic and market cycles. Newport's
management style is built on 20 years of experience, knowledge and local
relationships that few Asian fund managers can match.
The Portfolio Manager's Report on the following pages will provide you with more
specific information on your Fund's performance and the market in which your
Fund invests. Thank you for choosing Newport Tiger Cub Fund and for giving us
the opportunity to serve your investment needs.
Respectfully,
/s/ Stephen E. Gibson
Stephen E. Gibson
President
April 13, 1999
Because economic and market conditions change frequently, there can be no
assurance that the trends described above or on the following pages will
continue.
<PAGE>
PORTFOLIO MANAGER REPORT
[Photo of Robert Cameron]
ROBERT CAMERON is portfolio manager of Newport Tiger Cub Fund and is a senior
vice president of Newport Fund Management, Inc. The following is a discussion of
the Fund's performance for the six-month period ended February 28, 1999.
MARKET CONDITIONS IMPROVED DURING THE PERIOD
At the beginning of the period, investors were still concerned about Russia's
currency devaluation and the lack of economic stability in other less-developed
economies. Asian stocks continued to suffer in response to renewed fears of a
global economic crisis. However, sentiment shifted during the fall as investors
began to notice positive economic developments. First, many well-managed,
profitable companies were posting strong earnings gains, despite the region's
financial difficulties. Second, several Asian governments implemented measures
to revitalize their banking systems and capital markets. In response, the market
rallied impressively as global investors took advantage of attractive stock
prices to position themselves for a potential economic rebound.
The Fund's solid performance reflects improved market conditions as well as its
continued emphasis on well-managed, high-quality companies. For the six-month
period, the Fund generated a total return of 39.61% for Class A shares, based on
net asset value.
FUND REMAINED FOCUSED ON QUALITY
Despite encouraging signs throughout the region, we continued to concentrate the
Fund's investments in Hong Kong and Singapore (47.57% and 21.21% of total net
assets, respectively). We believe the economies of these countries are among the
strongest in the region, as both have substantial financial reserves and
well-managed banking systems. Singapore was one of the few Tiger countries
(along with China and Taiwan) that had positive economic growth in 1998. A
proactive government moved early on to enhance Singapore's global
competitiveness. As a result, we believe the country has the potential to become
a major force in the world's financial markets.
We continue to seek well-managed companies with distinct market positions,
consistent and sustainable earnings growth rates, low debt levels and strong
cash flows. This approach allows us to identify companies that have solid
businesses and growth prospects, regardless of their geographic location.
In the past several months we have become increasingly optimistic about China's
potential to drive the region's growth. The Chinese government has taken steps
to stimulate growth through lower interest rates and increased capital
investment for infrastructure, telecommunications and transportation. While
there are signs that economic growth in China may slow in 1999, there are still
a number of strong companies that we believe are undervalued by the market.
However, we will continue to keep the bulk of the Fund's holdings invested in
Hong Kong, where many of Southeast Asia's highest-quality companies are listed.
We believe this strategy is the best way to position the Fund to benefit from
China's growth.
INVESTMENT APPROACH UNCOVERS ATTRACTIVE STOCKS FOR PORTFOLIO
Despite the recent financial turmoil, several Asian companies have prospered,
increasing market share and generating attractive earnings. In previous reports
to shareholders, we have focused primarily on companies in Hong Kong, which has
comprised the largest market weighting in the Fund. In this report, we would
like to highlight two companies from some of the other markets in which the Fund
is invested. In Singapore, for example, we have found a number of attractive
companies. One such firm is Avimo Singapore Ltd. (5.78% of total net assets).
Avimo owns exclusive technology used in the design and manufacturing of advanced
precision optics. Their product line includes night vision equipment used by the
military, a specialized market segment that Avimo dominates. As a market leader,
the company enjoys strong order flow from around the globe, including a recent
contract with Apache Helicopter to outfit aircraft used by the British military.
In addition, the company has broadened its product line to include commercial
applications, such as zoom lenses and laser optics. The company has generated
attractive levels of cash flow and double-digit earnings growth despite the
Asian recession.
The Fund's bottom-up investment style has uncovered some attractive companies in
weaker economies that a top-down, or country-first, approach might have missed.
A good example is Thai Union Frozen Products (5.84% of total net assets),
Thailand's largest exporter of processed seafood, particularly tuna and shrimp.
The company, which owns Chicken of the Sea brand tuna, exports its products
around the world and has used its strong financial position to acquire
competitors at attractive prices. For example, a recent acquisition of Songkla
Canning (Thailand) should further solidify the company's competitive position
through production cost savings and increased market share.
ENCOURAGING SIGNS APPEARING
The past 18 months have been challenging for investors in Asian stocks. However,
the marketplace appears to be recognizing that Asian stocks have the potential
to offer attractive growth prospects over the years ahead. We believe that stock
prices should begin to better reflect attractive fundamental investment
characteristics, and we encourage investors to remain focused on investing for
the long term.
NEWPORT TIGER CUB FUND INVESTMENT PERFORMANCE VS.
THE MSCI PACIFIC REGION (EX-JAPAN) INDEX
Change in value of $10,000 from 6/30/96 - 2/28/99
CLASS A SHARES BASED ON NAV AND POP
MSCI PACIFIC
REGION
(EX-JAPAN)
NAV POP INDEX
- -----------------------------------------------------------------
Jun 30, 96 $10,000 $10,000 $10,000
Jul 31, 96 9,425 8,883 9,496
Aug 31, 96 9,405 8,864 9,920
Sep 30, 96 9,516 8,968 10,173
Oct 31, 96 9,162 8,636 10,449
Nov 30, 96 9,606 9,054 11,007
Dec 31, 96 9,728 9,168 11,028
Jan 31, 97 9,899 9,330 10,895
Feb 28, 97 9,768 9,206 11,049
Mar 31, 97 9,354 8,816 10,536
Apr 30, 97 9,273 8,740 10,320
May 31, 97 9,798 9,235 10,961
Jun 30, 97 9,929 9,358 11,201
Jul 31, 97 10,303 9,710 11,170
Aug 31, 97 9,183 8,655 9,620
Sep 30, 97 9,435 8,892 9,948
Oct 31, 97 7,639 7,200 7,838
Nov 30, 97 7,538 7,104 7,590
Dec 31, 97 6,983 6,581 7,609
Jan 31, 98 5,782 5,450 7,139
Feb 28, 98 7,195 6,781 8,237
Mar 31, 98 7,164 6,753 8,140
Apr 30, 98 6,599 6,220 7,571
May 31, 98 5,792 5,459 6,721
Jun 30, 98 4,924 4,641 6,316
Jul 31, 98 4,652 4,384 6,100
Aug 31, 98 3,935 3,709 5,275
Sep 30, 98 4,379 4,128 5,757
Oct 31, 98 5,469 5,155 6,868
Nov 30, 98 5,943 5,602 7,188
Dec 31, 98 5,959 5,616 7,104
Jan 31, 99 5,565 5,245 7,153
Feb 28, 99 5,494 5,178 7,078
VALUE OF A $10,000 INVESTMENT MADE ON 6/30/96
As of 2/28/99
- --------------------------------------------------------------------------------
CLASS A CLASS B CLASS C CLASS Z
NAV POP NAV W/CDSC NAV W/CDSC NAV
- --------------------------------------------------------------------------------
$5,494 $5,178 $5,368 $5,207 $5,388 $5,388 $5,521
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS
As of 2/28/99
- -------------------------------------------------------------------------------
CLASS A CLASS B CLASS C CLASS Z
INCEPTION 6/3/96 6/3/96 6/3/96 6/3/96
NAV POP NAV W/CDSC NAV W/CDSC NAV
- -------------------------------------------------------------------------------
1 YEAR (23.64)% (28.03)% (24.43)% (28.21)% (24.15)% (24.91)% (23.70)%
- -------------------------------------------------------------------------------
LIFE (19.88) (21.59) (20.56) (21.43) (20.45) (20.45) (19.74)
- -------------------------------------------------------------------------------
Past performance cannot predict future results. Returns and value of an
investment will vary, resulting in a gain or loss on sale. All results shown
assume reinvestment of distributions. Net asset value (NAV) returns do not
include sales charges or contingent deferred sales charges (CDSC). Public
offering price (POP) returns include the maximum sales charge of 5.75% for Class
A shares. CDSC returns reflect the maximum charges of 5% for the one-year return
and 3% for the life of fund return for Class B shares, and 1% for one year for
Class C shares.
Performance results reflect any voluntary waivers or reimbursement of Fund
expenses by the Advisor or its affiliates. Absent these waivers or reimbursement
arrangements, performance results would have been lower. Performance for
different share classes will vary based on differences in sales charges and fees
associated with each class.
MSCI Pacific Region (Ex-Japan) Index is a broad-based, unmanaged index that
tracks the performance of stocks in the Pacific Rim in countries other than
Japan. Unlike mutual funds, indexes are not investments and do not incur fees or
expenses. It is not possible to invest in an index.
<PAGE>
INVESTMENT PORTFOLIO
FEBRUARY 28, 1999 (UNAUDITED, IN THOUSANDS)
COMMON STOCKS - 92.7% COUNTRY SHARES VALUE
............................................................................
FINANCE, INSURANCE & REAL ESTATE - 31.0%
DEPOSITORY INSTITUTIONS - 7.1%
Hang Seng Bank Ltd. HK 25 $ 203
Oversea-Chinese Banking Corp., Ltd. Si 70 467
----------
670
----------
HOLDING COMPANIES - 4.5%
China Resources Enterprises Ltd. HK 150 196
City Developments Ltd. Si 54 226
----------
422
----------
INSURANCE CARRIERS - 4.1%
Thai Reinsurance Co., Ltd. Th 160 385
----------
REAL ESTATE - 15.3%
Cheung Kong Holdings Ltd. HK 45 306
HKR International Ltd. HK 349 215
SM Prime Holdings, Inc. Ph 3,000 578
Sun Hung Kai Properties Ltd. HK 49 334
----------
1,433
----------
............................................................................
MANUFACTURING - 44.6%
ELECTRONIC COMPONENTS - 9.0%
Johnson Electric Holdings Ltd. HK 196 518
Varitronix International Ltd. HK 186 329
----------
847
----------
FOOD & KINDRED PRODUCTS - 14.3%
Four Seas Merchantile Holdings Ltd. HK 1,754 572
Ng Fung Hong Ltd. HK 300 226
Thai Union Frozen Products Public Co.
Foreign Shares (a) Th 160 548
----------
1,346
----------
LIGHTING EQUIPMENT - 2.7%
Clipsal Industries Ltd. Si 307 256
----------
MEASURING & ANALYZING INSTRUMENTS - 10.9%
Avimo Singapore Ltd. Si 380 543
China Hong Kong Photo Products
Holdings, Ltd. HK 1,898 142
PT Modern Photo Film - Foreign Shares (a) In 6,518 333
----------
1,018
----------
RUBBER & PLASTIC - 4.3%
PT Dynaplast - Foreign Reg. In 7,795 398
Srithai Superware Public Co., Ltd. Th 19 7
----------
Foreign Shares (a) 405
----------
APPAREL & ACCESSORY STORES - 1.2%
Glorious Sun Enterprises HK 900 108
----------
MISCELLANEOUS RETAIL - 2.2%
Sa Sa International Holdings Ltd. HK 3,500 208
----------
............................................................................
SERVICES - 5.3%
COMPUTER RELATED SERVICES
Datacraft Asia Ltd. Si 250 500
----------
............................................................................
TRANSPORTATION, COMMUNICATION, ELECTRIC,
GAS & SANITARY SERVICES - 6.6%
Gas Services - 4.0%
Hong Kong and China Gas Co., Ltd. HK 326 379
----------
RAILROAD - 0.7%
Guangshen Railway Co., Ltd. HK 397 45
Guangshen Railway Co. Ltd., ADR HK 3 17
----------
62
----------
TELECOMMUNICATION - 1.9%
China Telecom Ltd. (a)(b) HK 100 177
----------
............................................................................
WHOLESALE TRADE - 5.2%
DURABLE GOODS
Li & Fung Ltd. HK 272 491
----------
TOTAL COMMON STOCKS (cost of $12,043) 8,707
----------
WARRANTS (a) - 3.3%
- ----------------------------------------------------------------------------
TRANSPORTATION, COMMUNICATION, ELECTRIC,
GAS & SANITARY SERVICES - 0.0%
GAS SERVICES
Hong Kong and China Gas Co., Ltd. HK 15 1
----------
............................................................................
RETAIL TRADE - 3.3%
RESTAURANTS
Jollibee Foods Corp. Ph 650 305
----------
TOTAL WARRANTS (cost of $295) 306
----------
TOTAL INVESTMENTS (cost of $12,338)(c) 9,013
----------
SHORT-TERM OBLIGATIONS - 4.7% PAR VALUE
- ------------------------------------------------------------------------------
Repurchase agreement with ABN AMRO Chicago Corp.,
dated 02/26/99, due 03/01/99 at 4.750%, collateralized
by U.S. Treasury bonds and notes with various maturities
to 2021, market value $433 (repurchase proceeds
$440) $ 440 $ 440
----------
OTHER ASSETS & LIABILITIES, NET - (0.7%) (62)
- -----------------------------------------------------------------------------
NET ASSETS - 100% $ 9,391
----------
NOTES TO INVESTMENT PORTFOLIO:
- -----------------------------------------------------------------------------
(a) Non-income producing.
(b) The value of this security represents fair value as determined in good faith
under the direction of the trustees.
(c) Cost for federal income tax purposes is the same.
Summary of Securities
by Country Country Value % of Total
- ----------------------------------------------------------------------------
Hong Kong HK $ 4,467 49.6
Singapore Si 1,992 22.1
Thailand Th 940 10.4
Philippines Ph 883 9.8
Indonesia In 731 8.1
-------- ----------
$ 9,013 100.0
-------- ----------
Certain securities are listed by country of underlying exposure but may trade
predominantly on other exchanges.
Acronym Name
------------- -----------------------------------
ADR American Depositary Receipt
See notes to financial statements.
<PAGE>
STATEMENT OF ASSETS & LIABILITIES
FEBRUARY 28, 1999 (UNAUDITED)
(in thousands except for per share amounts and footnotes)
ASSETS
Investments at value (cost $12,338) $ 9,013
Short-term obligations 440
-------
9,453
Receivable for:
Fund shares sold 87
Expense reimbursement due from
Advisor/Administrator 12
Other 3 102
----- -------
Total Assets 9,555
LIABILITIES
Payable for:
Fund shares repurchased 140
Accrued:
Management fee 9
Administration fee 5
Transfer agent fee 5
Bookkeeping fee 2
Deferred Trustees fee 1
Other 2
-----
Total Liabilities 164
-------
NET ASSETS $ 9,391
-------
Net asset value & redemption price per share -
Class A ($3,663/674) $5.44 (a)
-------
Maximum offering price per share - Class A
($5.44/0.9425) $5.77 (b)
-------
Net asset value & offering price per share -
Class B ($4,595/863) $5.32 (a)
-------
Net asset value & offering price per share -
Class C ($1,100/206) $5.34 (a)
-------
Net asset value, offering & redemption price
per share - Class Z ($33/6) $5.45
-------
(a) Redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
(b) On sales of $50,000 or more the offering price is reduced.
See notes to financial statements.
<PAGE>
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED FEBRUARY 28, 1999
(UNAUDITED)
(in thousands)
INVESTMENT INCOME
Dividends:
China Hong Kong Photo Products Holdings, Ltd. $ 9
Clipsal Industries Ltd. 7
Four Seas Merchantile Holdings Ltd. 20
Glorious Sun Enterprises 10
HKR International Ltd. 22
Oversea-Chinese Banking Corp., Ltd. 7
Thai Reinsurance Co., Ltd. 7
Other 24
Interest 21
-------
Total Investment Income (net of nonreclaimable
foreign taxes withheld at source which
amounted to $1) 127
EXPENSES
Management fee $ 55
Administration fee 12
Service fee - Class A, Class B, Class C 12
Distribution fee - Class B 16
Distribution fee - Class C 4
Transfer agent fee 19
Bookkeeping fee 12
Trustees fee 5
Audit fee 12
Legal fee 2
Custodian fee 12
Registration fee 24
Reports to shareholders 4
Other 2
------
191
Fees and expenses waived or borne
by the Advisor/Administrator (64) 127
------ -------
Net Investment Income 0
-------
Continued on following page.
See notes to financial statements.
<PAGE>
STATEMENT OF OPERATIONS - CONT.
NET REALIZED & UNREALIZED GAIN (LOSS) ON PORTFOLIO POSITIONS
Net realized loss on:
Investments (215)
Foreign currency transactions (73)
------
Net Realized Loss (288)
Change in net unrealized appreciation
(depreciation) during the period on:
Investments 3,143
Foreign currency transactions (6)
------
Net Unrealized Appreciation 3,137
-------
Net Gain 2,849
-------
Increase in Net Assets from Operations $ 2,849
-------
See notes to financial statements.
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
Six months Year
ended ended
(in thousands) February 28 August 31
----------- ---------
INCREASE (DECREASE) IN NET ASSETS 1999 1998
Operations:
Net investment income $ - $ 186
Net realized loss (288) (4,661)
Net unrealized appreciation (depreciation) 3,137 (5,988)
------- -------
Net Increase (Decrease) from Operations 2,849 (10,463)
------- -------
Distributions:
From net investment income - Class A (4) -
From net investment income - Class Z (a) -
------- -------
(4) -
------- -------
Fund Share Transactions:
Receipts for shares sold - Class A 939 6,030
Value of distributions reinvested - Class A 4 -
Cost of shares repurchased - Class A (2,200) (6,251)
------- -------
(1,257) (221)
------- -------
Receipts for shares sold - Class B 1,543 4,820
Cost of shares repurchased - Class B (1,299) (4,821)
------- -------
244 (1)
------- -------
Receipts for shares sold - Class C 357 1,898
Cost of shares repurchased - Class C (276) (1,686)
------- -------
81 212
------- -------
Receipts for shares sold - Class Z 4 12
Value of distributions reinvested - Class Z (a) -
Cost of shares repurchased - Class Z (2) (883)
------- -------
2 (871)
------- -------
Net Decrease from Fund
Share Transactions (930) (881)
------- -------
Total Increase (Decrease) 1,915 (11,344)
NET ASSETS
Beginning of period 7,476 18,820
------- -------
End of period (net of overdistributed and
including accumulated net investment
income of $4 and none, respectively) $ 9,391 $ 7,476
------- -------
(a) Rounds to less than one.
Continued on following page.
See notes to financial statements.
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS - CONT
(Unaudited)
Six months Year
ended ended
(in thousands) February 28 August 31
----------- ---------
1999 1998
NUMBER OF FUND SHARES
Sold - Class A 180 905
Issued for distributions reinvested - Class A 1 -
Repurchased - Class A (419) (944)
------- -------
(238) (39)
------- -------
Sold - Class B 277 687
Repurchased - Class B (240) (711)
------- -------
37 (24)
------- -------
Sold - Class C 68 305
Repurchased - Class C (53) (258)
------- -------
15 47
------- -------
Sold - Class Z (a) 2
Issued for distributions reinvested - Class Z (a) -
Repurchased - Class Z (a) (128)
------- -------
(a) (126)
------- -------
(a) Rounds to less than one.
See notes to financial statements.
<PAGE>
NOTES TO FINANCIAL STATEMENTS
FEBRUARY 28, 1999 (UNAUDITED)
NOTE 1. INTERIM FINANCIAL STATEMENTS
...............................................................................
In the opinion of management of Newport Tiger Cub 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, 1999, 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 small
companies (i.e., companies with equity market capitalizations of U.S. $1 billion
or less) located in the nine Tiger markets of Asia (Hong Kong, Singapore, South
Korea, Taiwan, Malaysia, Thailand, Indonesia, The People's Republic of China and
the Philippines). 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 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.
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 certain
countries, the Fund may hold foreign designated shares. If the foreign share
prices are not readily available as a result of limited share activity, the
securities are valued at the last sale price of the local shares in the
principal market in which such securities are normally traded. 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.
The value of all assets and liabilities quoted in foreign currencies is
translated into U.S. dollars at that day's exchange rates. In certain countries,
the Fund may hold portfolio positions for which market quotations are not
readily available. Such securities are valued at fair value under procedures
approved by the Trustees.
Security transactions are accounted for on the date the securities are
purchased, sold or mature.
Cost is determined and gains and losses are based upon the specific
identification method for both financial statement and federal income tax
purposes.
DETERMINATION OF CLASS NET ASSET VALUES AND FINANCIAL HIGHLIGHTS: All income,
expenses (other than the Class 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 reflect 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 have been
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 fluctuation in exchange rates on
gains (losses) between trade and settlement dates on securities transactions,
gains (losses) arising from the disposition of foreign currency and currency
gains (losses) between the accrual and payment dates on dividends and interest
income and foreign withholding taxes.
The Fund does not distinguish that portion of gains (losses) on investments
which is due to changes in foreign exchange rates from that which is due to
changes in market prices of the investments. Such fluctuations are included with
the net realized and unrealized gains (losses) 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 Fund
may also enter into forward currency contracts to hedge certain other foreign
currency denominated assets. The contracts are used to minimize the exposure to
foreign exchange rate fluctuations during the period between trade and
settlement date of the contracts. All contracts are marked-to-market daily,
resulting in unrealized gains (losses) which become realized at the time the
forward currency contracts are closed or mature. Realized and unrealized gains
(losses) arising from such transactions are included in net realized and
unrealized gains (losses) on foreign currency transactions. Forward currency
contracts do not eliminate fluctuations in the prices of the Fund's portfolio
securities. While the maximum potential loss from such contracts is the
aggregate face value in U.S. dollars at the time the contract 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, Inc. (the Advisor) is the
investment Advisor of the Fund and receives a monthly fee equal to
1.15% annually of the Fund's average net assets.
ADMINISTRATION FEE: Colonial Management Associates, Inc. (the
Administrator), an affiliate of the Advisor, provides accounting and
other services 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
$27,000 per year plus 0.035% of the Fund's average net assets over $50 million.
TRANSFER AGENT: Liberty Funds Services, 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 was 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 Funds Distributor
Inc. (the Distributor), a subsidiary of the Administrator, is the Fund's
principal underwriter. For the six months ended February 28, 1999, the Fund has
been advised that the distributor retained net underwriting discounts of $7,757
on sales of the Class A shares and received contingent deferred sales charges
(CDSC) of $907, $16,420, and $356 on Class A, 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
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 Advisor/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 2.00% annually of the Fund's
average net assets.
OTHER: The Fund pays no compensation to its officers, all of whom are employees
of the Advisor 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, 1999, purchases
and sales of investments, other than short-term obligations, were $1,037,904 and
$1,384,624, respectively.
Unrealized appreciation (depreciation) at February 28, 1999, based on cost of
investments for both financial statement and federal income tax purposes was:
Gross unrealized appreciation $ 772,555
Gross unrealized depreciation (4,097,433)
------------
Net unrealized depreciation $ (3,324,878)
------------
CAPITAL LOSS CARRYFORWARDS: At August 31, 1998, capital loss carryforwards
available (to the extent provided in regulations) to offset future realized
gains were approximately as follows:
Year of Capital loss
expiration carryforward
------------ ---------------
2005 $ 38,000
2006 914,000
--------
$952,000
--------
Expired capital loss carryforwards, if any, are recorded as a reduction of
capital paid in.
To the extent loss carryforwards are used to offset any future realized gains,
it is unlikely that such gains would be distributed since they may be taxable to
shareholders as ordinary income.
OTHER: 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 33 1/3% of its net assets under a line of credit for
temporary or emergency purposes. Any borrowings bear interest at one of the
following options determined at the inception of the loan: (1) federal funds
rate plus 1/2 of 1%, (2) the lending bank's base rate or (3) IBOR offshore loan
rate plus 1/2 of 1%. There were no borrowings under the line of credit during
the six months ended February 28, 1999.
NOTE 6. COMPOSITION OF NET ASSETS
...............................................................................
Capital paid in $ 18,078
Overdistributed net investment income (4)
Accumulated net realized loss (5,358)
Net unrealized depreciation (3,325)
--------------
$ 9,391
--------------
NOTE 7. RESULTS OF SPECIAL SHAREHOLDER MEETING
...............................................................................
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 the Meeting, the Fund had
outstanding 2,007,454 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 973,557 69,364
Tom Bleasdale 973,887 69,034
John Carberry 973,754 69,167
Lora S. Collins 973,887 69,060
James E. Grinnell 973,861 69,060
Richard W. Lowry 973,887 69,034
Salvatore Macera 973,887 69,034
William E. Mayer 973,887 69,034
James L. Moody, Jr. 973,887 69,034
John J. Neuhauser 973,887 69,034
Thomas E. Stitzel 973,861 69,060
Robert L. Sullivan 973,887 69,034
Anne-Lee Verville 973,754 69,167
To amend fundamental investment policies regarding borrowing and lending.
For Against Abstain
--- ------- -------
740,058 49,148 69,921
To reclassify the fundamental investment policy regarding the purchase of
illiquid securities.
For Against Abstain
--- ------- -------
734,881 56,198 68,050
To approve policies for a master fund/feeder fund structure.
For Against Abstain
--- ------- -------
738,273 51,039 69,818
<PAGE>
FINANCIAL HIGHLIGHTS
Selected data for a share of each class outstanding throughout the period are as
follows:
<TABLE>
<CAPTION>
(Unaudited)
Six months ended February 28
-------------------------------------------------------
1999
Class A Class B Class C Class Z
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Net asset value -
Beginning of period $ 3.900 $ 3.830 $ 3.830 $ 3.920
---------- ---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (a)(b)(c) 0.011 (0.008) (0.009) 0.014
Net realized and unrealized gain 1.534 1.498 1.519 1.539
---------- ---------- ---------- ----------
Total from Investment Operations 1.545 1.490 1.510 1.553
---------- ---------- ---------- ----------
LESS DISTRIBUTION DECLARED TO SHAREHOLDERS:
From net investment income (0.005) -- -- (0.023)
---------- ---------- ---------- ----------
Net asset value -
End of period $ 5.440 $ 5.320 $ 5.340 $ 5.450
---------- ---------- ---------- ----------
Total return (d)(e)(f) 39.61% 38.90% 39.43% 39.57%
---------- ---------- ---------- ----------
RATIOS TO AVERAGE NET ASSETS
Expenses (g)(h) 2.25% 3.00% 3.00% 2.00%
Net investment income (loss) (g)(h) 0.43% (0.32)% (0.32)% 0.68%
Fees and expenses waived or borne by
the Advisor/Administrator (g)(h) 1.35% 1.35% 1.35% 1.35%
Portfolio turnover (f) 12% 12% 12% 12%
Net assets at end of period (000) $ 3,663 $ 4,595 $ 1,100 $ 33
(a) Net of fees and expenses waived or borne by the Advisor/Administrator
which amounted to: $ 0.035 $ 0.035 $ 0.035 $ 0.035
(b) Per share data was calculated using average shares outstanding during the period.
(c) Includes distributions from securities listed on the Statement of Operations which amounted to
$0.005, $0.004, $0.011, $0.005, $0.012, $0.004 and $0.004 per share, respectively.
(d) Total return at net asset value assuming all distributions reinvested and no initial sales charge or
contingent deferred sales charge.
(e) Had the Advisor/Administrator not waived or reimbursed a portion of expenses, total return would have been reduced.
(f) Not annualized.
(g) The benefits derived from custody credits and directed brokerage arrangements had no impact.
(h) Annualized.
</TABLE>
<PAGE>
FINANCIAL HIGHLIGHTS - CONT.
Selected data for a share of each class outstanding throughout the period are as
follows:
<TABLE>
<CAPTION>
Year ended August 31
-------------------------------------------------------
1998
Class A Class B Class C Class Z
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Net asset value -
Beginning of period $ 9.100 $ 9.020 $ 9.020 $ 9.130
---------- ---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (a)(b)(c) 0.115 0.067 0.067 0.132
Net realized and unrealized loss (5.315) (5.257) (5.257) (5.342)
---------- ---------- ---------- ----------
Total from Investment Operations (5.200) (5.190) (5.190) (5.210)
---------- ---------- ---------- ----------
Net asset value -
End of period $ 3.900 $ 3.830 $ 3.830 $ 3.920
---------- ---------- ---------- ----------
Total return (e)(f) (57.14)% (57.54)% (57.54)% (57.06)%
---------- ---------- ---------- ----------
RATIOS TO AVERAGE NET ASSETS
Expenses (g) 2.25% 3.00% 3.00% 2.00%
Net investment income (loss) (g) 1.75% 1.00% 1.00% 2.00%
Fees and expenses waived or borne by
the Advisor/Administrator (g) 1.02% 1.02% 1.02% 1.02%
Portfolio turnover (g) 56% 56% 56% 56%
Net assets at end of period (000) $ 3,556 $ 3,165 $ 732 $ 23
(a) Net of fees and expenses waived or borne by the Advisor/Administrator
which amounted to: $ 0.067 $ 0.067 $ 0.067 $ 0.067
(b) Per share data was calculated using average shares outstanding during the period.
(c) 1998 information includes distributions from securities listed on the Statement of Operations which amounted
to $0.016, $0.013, $0.013, $0.014, $0.012, $0.014, $0.014, $0.013 and $0.017 per share, respectively.
1997 information includes distributions from Srithai Superware Public Co., Ltd. and Varitronix International Ltd.
which amounted to $0.039 per share.
(d) Effective July 1, 1997, Class D shares were redesignated Class C shares.
(e) Total return at net asset value assuming all distributions reinvested and no initial sales charge or contingent
deferred sales charge.
(f) Had the Advisor/Administrator not waived or reimbursed a portion of expenses, total return would have been reduced.
(g) The benefits derived from custody credits and directed brokerage arrangements had no impact.
</TABLE>
<PAGE>
FINANCIAL HIGHLIGHTS - CONT.
Year ended August 31
- --------------------------------------------------
1997
Class A Class B Class C (d) Class Z
- ----------- --------- --------- ---------
$ 9.320 $ 9.300 $ 9.300 $ 9.320
------- ------- ------- -------
0.059 (0.012) (0.012) 0.083
(0.279) (0.268) (0.268) (0.273)
------- ------- ------- -------
(0.220) (0.280) (0.280) (0.190)
------- ------- ------- -------
$ 9.100 $ 9.020 $ 9.020 $ 9.130
------- ------- ------- -------
(2.36)% (3.01)% (3.01)% (2.04)%
------- ------- ------- -------
2.25% 3.00% 3.00% 2.00%
0.62% (0.13)% (0.13)% 0.87%
1.09% 1.09% 1.09% 1.09%
96% 96% 96% 96%
$ 8,653 $ 7,664 $ 1,300 $ 1,203
$ 0.105 $ 0.105 $ 0.105 $ 0.105
<PAGE>
FINANCIAL HIGHLIGHTS - CONT.
Selected data for a share of each class outstanding throughout the period are
as follows:
<TABLE>
<CAPTION>
Period ended August 31
------------------------------------------------------
1996 (c)
Class A Class B Class C(d) Class Z
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Net asset value -
Beginning of period $ 10.000 $ 10.000 $ 10.000 $ 10.000
---------- ---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)(a)(b) 0.016 (0.002) (0.002) 0.021
Net realized and unrealized loss (0.696) (0.698) (0.698) (0.701)
---------- ---------- ---------- ----------
Total from Investment Operations (0.680) (0.700) (0.700) (0.680)
---------- ---------- ---------- ----------
Net asset value -
End of period $ 9.320 $ 9.300 $ 9.300 $ 9.320
---------- ---------- ---------- ----------
Total return (e)(f)(g) (6.80)% (7.00)% (7.00)% (6.80)%
---------- ---------- ---------- ----------
RATIOS TO AVERAGE NET ASSETS
Expenses (h)(i) 2.25% 3.00% 3.00% 2.00%
Net investment income (loss) (h)(i) 0.62% (0.13)% (0.13)% 0.87%
Fees and expenses waived or borne by
the Advisor/Administrator (h)(i) 5.16% 5.16% 5.16% 5.16%
Portfolio turnover(g) 3% 3% 3% 3%
Net assets at end of period (000) $ 3,542 $ 2,654 $ 738 $ 1,166
(a) Net of fees and expenses waived or borne by the Advisor/Administrator
which amounted to: $ 0.123 $ 0.123 $ 0.123 $ 0.123
(b) Per share data was calculated using average shares outstanding during the period.
(c) The Fund commenced investment operations on June 3, 1996.
(d) Effective July 1, 1997, Class D shares were redesignated Class C shares.
(e) Total return at net asset value assuming all distributions reinvested and no initial sales charge or
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) The benefits derived from custody credits and directed brokerage arrangements had no impact.
(i) Annualized.
</TABLE>
<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.
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>
SHAREHOLDER COMMUNICATIONS
TO KEEP YOU INFORMED
To make recordkeeping easy and keep you up-to-date on the performance of your
investments, you can expect to receive the following information about your
account:
TRANSACTION CONFIRMATIONS: Each time you make a purchase, sale or exchange, you
receive a confirmation statement within just a few days.
QUARTERLY STATEMENTS: Every three months, if any transactions are made that
affect your share balance, this statement reports on your account activity
during the quarter (including any reinvestment of dividends). This statement
also provides year-to-date information.
LIBERTY FUNDS DISTRIBUTOR INVESTOR OPPORTUNITIES: Mailed with your quarterly
account statements, this newsletter highlights timely investment strategies,
portfolio manager commentary and shareholder service updates.
TAX FORMS AND YEAR-END TAX GUIDE: Easy-to-use forms and timely information are
designed to make tax reporting simpler. (Usually mailed in January.)
AVERAGE COST BASIS STATEMENTS: If you sold or exchanged shares during the year,
this statement may help you calculate your gain/loss for tax purposes. (Usually
mailed in February.)
<PAGE>
IMPORTANT INFORMATION ABOUT THIS REPORT
The Transfer Agent for Newport Tiger Cub Fund is:
Liberty Funds Services, Inc.*
P.O. Box 1722
Boston, MA 02105-1722
1-800-345-6611
Newport Tiger Cub 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 Newport Tiger Cub Fund. This
report may also be used as sales literature when preceded or accompanied by the
current prospectus which provides details of sales charges, investment
objectives and operating policies of the Fund and the most recent copy of the
Liberty Funds Distributor, Inc. Performance Update.
* Effective October 1, 1998, Colonial Investors Service Center, Inc. - the
Transfer Agent for Colonial, Crabbe Huson, Newport and Stein Roe Advisor
funds - changed 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 V. 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
CF-03/801G-0399 (4/99) 99/417
