<PAGE>
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GALAXY
------
FUNDS
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[Graphic Omitted]
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MONEY MARKET FUNDS REPORT
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MONEY MARKET FUND . GOVERNMENT FUND . TAX-EXEMPT FUND .
U.S. TREASURY FUND CONNECTICUT MUNICIPAL MONEY MARKET FUND .
MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
- ----------------------
SEMI-ANNUAL
REPORT
FOR THE SIX MONTHS
ENDED APRIL 30, 1997
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<PAGE>
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CHAIRMAN'S
MESSAGE
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Dear Shareholder:
The last six months have brought significant changes in the financial
markets. Initially, signs that economic growth was moderating raised hopes for
stable inflation and interest rates. Later, however, indications of accelerating
growth renewed inflation worries. This uncertainty about where the economy was
headed increased the volatility of prices for stocks and bonds.
Rising interest rates boosted money market yields for part of this time,
helping money market instruments to outperform other bond and stock investments.
Such performance demonstrates the important role that money market investments
can play in your portfolio. Historically, of course, money market instruments
have not kept pace with stocks and bonds over longer time periods -- or helped
investors to beat inflation.
Most market volatility is hard to predict and has tended to smooth out
over time. As a result, it usually makes sense to set a long-term investment
strategy using a diversified mix of investments featuring money market, bond and
stock investment options. Your financial professional can help you decide if
your portfolio is properly diversified for your investment goals and tolerance
for risk.
You may also want to consider a strategy called "dollar cost averaging."
By investing the same amount of money in bond and stock mutual funds each month,
you will tend to buy more shares when their prices are low and fewer shares when
they're high. While dollar cost averaging can't guarantee a profit, or protect
against a loss, it may be a means of minimizing the impact of market
fluctuations over longer periods.*
You can initiate dollar cost averaging through Galaxy's Automatic
Investment Program. The Program waives the normal $2,500 minimum initial
investment if you invest as little as $50 each month. Your investment will be
automatically deducted from your money market fund checking account or from any
bank or savings account.
The enclosed report covers the performance of the Galaxy Money Market
Funds for the six months ended April 30, 1997. Inside you'll find a Market
Overview, which describes the major economic and market trends during this time,
as well as individual Portfolio Reviews, which discuss how Fleet Investment
Advisors Inc. managed each of the Funds in this environment.
Should you have questions about this report, or want information on
dollar-cost averaging and the Galaxy Automatic Investment Program, please
contact the Galaxy Service Center at 800-628-0414.
Sincerely,
/s/ Dwight E. Vicks, Jr.
Dwight E. Vicks, Jr.
Chairman of the Board of Trustees
MUTUAL FUNDS:
O ARE NOT BANK DEPOSITS
O ARE NOT FDIC INSURED
O ARE NOT OBLIGATIONS OF FLEET BANK
O ARE NOT GUARANTEED BY FLEET BANK
O ARE SUBJECT TO INVESTMENT RISK INCLUDING POSSIBLE LOSS OF PRINCIPAL AMOUNT
INVESTED
* Dollar Cost Averaging does not assure a profit or protect against a loss in
declining markets. Since such a strategy involves continuous investment in
securities regardless of price fluctuations, you should consider your financial
ability to continue purchases through low price levels.
<PAGE>
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MARKET OVERVIEW
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MONEY MARKET OVERVIEW
By Fleet Investment Advisors Inc.
In the six months ended April 30, 1997, the direction of the economy,
inflation and interest rates remained unsettled. When the period began, there
were signs that economic growth was moderating -- which helped interest rates to
stabilize. Later, however, it became obvious that the economy was picking up
steam. Although annual rates of inflation showed no signs of increasing, the
Federal Reserve (the "Fed") raised short-term interest rates to keep future
inflation under control.
Despite the changing outlook for inflation and interest rates, money
market yields ended the period just about where they began. By adjusting the mix
of maturities and assets in the Galaxy money market funds to limit the effects
of yield fluctuations that took place during this time, the Funds delivered
solid returns.
A MODEST RISE
IN SHORT-TERM INTEREST RATES
In November 1996, when the period began, three-month Treasury bills were
yielding about 5.15%, and the annual rate of inflation was about 3%. The
Commerce Department reported that the gross domestic product ("GDP"), which
measures U.S. goods and services, had grown at an annualized rate of 2.1% in the
third quarter of 1996 -- down from 4.7% in the second quarter.
Besides optimism about moderate economic growth and inflation,
income-oriented investors were cheered by federal election results -- which
brought new hope for balancing the federal budget. In this environment, the Fed
left short-term interest rates unchanged, and money market yields traded in a
relatively narrow range. At the end of 1996, yields for three-month Treasury
bills stood at 5.17%.
"Besides optimism about moderate economic growth and inflation, income-oriented
investors were cheered by federal election results -- which brought new hope
for balancing the federal budget."
Optimism about inflation and interest rates abated in the first months of
1997, however. The Commerce Department reported that GDP growth had accelerated
to an annualized rate of 4.7% in the fourth quarter of 1996. Although inflation
fell to 2.5% and the fourth-quarter growth rate was revised to 3.8%, strong
consumer demand and tight labor markets raised the possibility that inflation
might stifle growth down the road. Meanwhile, the Fed was concerned about an
"irrational exuberance" in stock prices -- which continued to break new highs.
On March 25, the Fed made a pre-emptive strike against inflation and
raised its Fed Funds rate by 25 basis points. This, plus expectations for
further rate hikes, pushed yields for three-month Treasuries as high as 5.30%.
With continued good news about inflation, however, another rate hike seemed less
certain. By the end of April, short-term yields had dipped to 5.23%.
INVESTMENT STRATEGY
Because it seemed unlikely that the Fed would raise interest rates at the
end of 1996 , we placed more emphasis on instruments with longer maturities.
Once it looked like yields would head higher, we gave greater attention to
shorter-term securities. This let us move into higher-yielding issues as we
invested money from maturing issues.
<PAGE>
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MARKET OVERVIEW
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Throughout this time, we kept an eye on the spreads between the yields of
different money market instruments. Where we could, we adjusted the mix of
investments in the Galaxy money market funds to take advantage of yield spreads.
PERFORMANCE AT-A-GLANCE As of April 30, 1997
RETAIL A RETAIL B TRUST
SHARES SHARES SHARES
-------- -------- ------
GALAXY MONEY MARKET FUND
7-day average yield ............ 4.87% 4.32% 5.04%
30-day average yield ........... 4.82% 4.32% 4.99%
GALAXY GOVERNMENT FUND
7-day average yield ............ 4.77% N/A 4.97%
30-day average yield ........... 4.75% N/A 4.94%
GALAXY TAX-EXEMPT FUND
7-day average yield ............ 3.25% N/A 3.39%
30-day average yield ........... 2.97% N/A 3.11%
GALAXY U.S. TREASURY FUND
7-day average yield ............ 4.62% N/A 4.78%
30-day average yield ........... 4.58% N/A 4.75%
GALAXY CONNECTICUT MUNICIPAL
MONEY MARKET FUND
7-day average yield ............ 3.44% N/A N/A
30-day average yield ........... 3.06% N/A N/A
GALAXY MASSACHUSETTS MUNICIPAL
MONEY MARKET FUND
7-day average yield ............ 3.47% N/A N/A
30-day average yield ........... 3.03% N/A N/A
Investments in the Galaxy Money Market Funds are neither insured nor
guaranteed by the U.S. Government, and there can be no assurance that the
Funds will be able to maintain a stable net asset value of $1.00 per share.
Yields are historical and will vary with market performance. Past performance
is no guarantee of future results.
Retail B Shares were first issued on March 6, 1997.
Retail A Shares are currently charged a shareholder servicing fee of 0.10% of
average daily net assets. Retail B Shares are currently charged a
distribution fee of 0.65% of average net assets and a shareholder servicing
fee of 0.10% of average daily net assets. (See Note 3 in the Notes to
Financial Statements).
"Later in the year, however, we expect GDP growth to slow under the weight of
higher interest rates, a strong dollar and an aging business cycle. If that's
the case, inflation should remain below 3%, and money market yields
should stabilize or even decline."
LOOKING AHEAD
In the months ahead, money market yields should stay tied to the economy
and inflation. If the economy continues to grow strongly, we believe the Fed
will raise short-term rates modestly and money market yields will rise. Later in
the year, however, we expect GDP growth to slow under the weight of higher
interest rates, a strong dollar and an aging business cycle. If that's the case,
inflation should remain below 3%, and money market yields should stabilize or
even decline.
As long as investors expect money market rates to move higher, we plan to
maintain short average maturities for investments in the Galaxy money market
funds. Once yields appear to have peaked, we expect to add longer-term
investments that can lock in the higher yields for more time.
We will continue, of course, to look for investments whose yields are
particularly attractive. As always, we will emphasize well-diversified
portfolios of high-quality instruments with good value.
<PAGE>
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PORTFOLIO REVIEWS
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GALAXY TAXABLE MONEY MARKET FUNDS
By Karen Arneil and
Thomas DeMarco
Portfolio Managers
When money market yields fluctuate, as they have in recent months, the
spreads between yields of different instruments can change. Over the six month
period ended April 30, 1997, we adjusted the mix of investments in the Galaxy
taxable money market funds -- which include the Galaxy Money Market Fund, the
Galaxy Government Fund, and the Galaxy U.S. Treasury Fund -- to make the most of
such changes in yield spreads. In addition, we shifted maturities of the Funds'
investments to take advantage of higher yields. These strategies helped the
Funds earn competitive returns for the six months ended April 30, 1997.
GALAXY MONEY
MARKET FUND
Distribution of Total Net Assets as of April 30, 1997
Repurchase Agreement & Net Other Assets & Liabilities 2%
Certificates of Deposit .................... 5%
U.S. Gov't. & Agency Obligations ........... 33%
Commercial Paper ........................... 60%
During the period, Trust Shares of the Galaxy Money Market Fund earned a
total return of 2.46%. Retail A Shares of the Galaxy Money Market Fund earned a
total return of 2.36%. Retail B Shares earned a total return of 0.50% from the
date of their initial public offering on March 6, 1997 through April 30, 1997,
after the deduction of the 5.00% contingent deferred sales charge.
By comparison, Lipper Analytical Services ("Lipper"), a mutual fund
performance tracking service, measured average total returns for the same time
period of 2.53% for trust shares and, 2.35% for retail shares of other taxable
money market funds that reported their results to Lipper.
GALAXY MONEY MARKET FUND
7 Day Average Yield
GALAXY GALAXY GALAXY
MONEY MARKET MONEY MARKET MONEY MARKET
FUND - RETAIL A FUND - TRUST FUND - RETAIL B
--------------- ------------ ---------------
4/30/96 4.53 4.74
5/31/96 4.57 4.77
6/30/96 4.57 4.79
7/31/96 4.64 4.83
8/31/96 4.65 4.84
9/30/96 4.67 4.89
10/31/96 4.62 4.84
11/30/96 4.66 4.87
12/31/96 4.73 4.93
1/31/97 4.71 4.93
2/29/97 4.71 4.92
3/31/97 4.78 4.96 4.23
4/30/97 4.87 5.04 4.32
For the six months ended April 30, 1997, Trust Shares of the Galaxy
Government Fund had a total return of 2.44%. Retail A Shares of the Galaxy
Government Fund had a total return of 2.33%. Trust shares of other money market
funds investing in U.S. Government issues that reported their performance to
Lipper earned a total return of 2.50% during the same period. Retail shares of
similar funds earned an average total return of 2.35% for the same period
according to Lipper.
During the six months ended April 30, 1997, Trust Shares of the Galaxy
U.S. Treasury Fund had a total return of 2.34%. Retail A Shares of the Galaxy
U.S. Treasury Fund earned a total return of 2.26%. These returns compared with
an average total return of 2.46% for trust shares of other money market funds
investing in U.S. Treasury issues that reported their results to Lipper. Retail
Shares of similar funds earned a total return of 2.32% for the same period,
according to Lipper.
GALAXY GOVERNMENT FUND
Distribution of Total Net Assets as of April 30, 1997
Federal National Mortgage Association .................................... 27%
Federal Home Loan Management Corporation ................................. 23%
Federal Home Loan Bank ................................................... 16%
Repurchase Agreement & Net Other Assets & Liabilities .................... 16%
Student Loan Marketing Association ....................................... 7%
Federal Farm Credit Bank ................................................. 6%
U.S. Treasury Notes ...................................................... 5%
<PAGE>
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PORTFOLIO REVIEWS
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GALAXY GOVERNMENT FUND
7-Day Average Yield
GALAXY GALAXY
GOVERNMENT GOVERNMENT
FUND - RETAIL A FUND - TRUST
--------------- ---------------
6/30/96 4.50 4.71
7/31/96 4.54 4.75
8/31/96 4.61 4.82
9/30/96 4.63 4.85
10/31/96 4.58 4.80
11/30/96 4.62 4.84
12/31/96 4.68 4.90
1/30/97 4.70 4.89
2/29/97 4.67 4.85
3/31/97 4.72 4.92
4/30/97 4.77 4.97
ADAPTING TO CHANGES IN YIELD
In November and December of 1996, when money market yields were more
stable, we lengthened the average maturities of investments in the Galaxy
taxable money market funds slightly to enhance the Funds' yields but maintained
the average maturity at somewhat shorter terms than the average for other funds
with similar objectives because the yield curve was rather flat at the time, and
moving out further on the maturity spectrum did not offer a commensurate reward
in incremental yield.
When money market yields rose in the first months of 1997, we gave greater
emphasis to shorter-term instruments. This let us reinvest money from maturing
issues in higher-yielding instruments. We purchased floating-rate notes of U.S.
Government agencies. The coupons on these notes reset frequently, so they have
helped us take further advantage of rising yields. As before, we added to Fund
returns by making the most of changes in the yield spreads of different
securities.
Toward the end of the period, as investors anticipated further hikes in
short-term interest rates, the demand for shorter-term money market securities
grew. Because this made shorter-term securities more expensive, we gave slightly
more attention to longer-term securities. Even so, the Funds' average maturities
remained short. At the end of April 1997, the Galaxy Money Market Fund had an
average maturity of 36 days, the Galaxy Government Fund had an average maturity
of 43 days, and the Galaxy U.S. Treasury Fund had an average maturity of 42
days.
GALAXY U.S. TREASURY FUND
Distribution of Total Net Assets
as of April 30, 1997
U.S. Treasury Bills ...................................................... 36%
U.S. Treasury Notes ...................................................... 30%
Student Loan Marketing Association ....................................... 20%
Federal Home Loan Bank & Net Other Assets & Liabilities .................. 12%
Federal Farm Credit Bank ................................................. 2%
FUTURE DIRECTIONS
If further concerns about inflation push money market yields higher in
coming months, as we expect, the Galaxy taxable money market funds should
benefit from their emphasis on shorter maturities and floating-rate notes. We
expect, therefore, to give continued attention to such issues. Once it appears
that the Federal Reserve has completed its recent round of interest rate hikes,
we plan to add longer-term issues to lock in the higher yields for more time.
In the meantime, we will continue to look for opportunities to enhance
returns that changing yield spreads might bring -- while keeping the Funds' mix
of assets, issues and maturity dates well diversified.
Karen Arneil and Tom DeMarco have managed the Galaxy Money Market Fund, the
Galaxy Government Fund and the Galaxy US Treasury Fund since September 1996.
They have managed money investments since 1993.
GALAXY U.S. TREASURY FUND
7-Day Average Yield
GALAXY GALAXY
U.S. TREASURY U.S. TREASURY
FUND - RETAIL A FUND - TRUST
--------------- -------------
4/30/96 4.43 4.59
5/30/96 4.43 4.59
6/30/96 4.54 4.69
7/31/96 4.52 4.68
8/31/96 4.55 4.71
9/30/96 4.56 4.72
10/31/96 4.49 4.66
11/30/96 4.53 4.69
12/31/96 4.49 4.65
1/31/97 4.47 4.64
2/29/97 4.49 4.67
3/31/97 4.59 4.76
4/30/97 4.62 4.78
<PAGE>
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PORTFOLIO REVIEWS
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GALAXY TAX-EXEMPT MONEY MARKET FUNDS
By Karen Arneil and
Thomas DeMarco
Portfolio Managers
As yields fluctuated in the six months ended April 30, 1997, we changed
the investment strategy for the Galaxy tax-exempt money market funds -- which
include the Galaxy Tax-Exempt Fund, the Galaxy Connecticut Municipal Money
Market Fund and the Galaxy Massachusetts Municipal Money Market Fund. By
investing in longer-term issues when we expected yields to remain unchanged or
to fall, and shorter-term issues when we expected yields to rise, we helped the
Funds earn solid returns that compared well with funds having similar investment
objectives.
During the period Trust and Retail A Shares of the Galaxy Tax-Exempt Fund
had total returns of 1.47% and 1.40%, respectively. By comparison, Lipper
measured average total returns of 1.56% for the same period for trust shares
and, 1.44% for retail shares of other tax-exempt money market funds reporting
their performance to the service.
GALAXY TAX-EXEMPT FUND
Distribution of Total Net Assets as of April 30, 1997
South .................................................................... 34%
East ..................................................................... 29%
North Central ............................................................ 21%
Pacific & Net Other Assets & Liabilities ................................. 10%
Mountain ................................................................. 6%
GALAXY TAX-EXEMPT FUND
7-Day Average Yield
GALAXY GALAXY
TAX EXEMPT TAX EXEMPT
FUND - RETAIL A FUND - TRUST
--------------- ------------
4/30/96 2.68 2.84
5/31/96 2.83 2.97
6/30/96 2.81 2.95
7/31/96 2.80 2.94
8/31/96 2.81 2.95
9/30/96 2.87 3.00
10/31/96 2.81 2.95
11/30/96 2.89 3.02
12/31/96 2.96 3.10
1/31/97 2.82 2.98
2/29/97 2.77 2.94
3/31/97 2.83 2.98
4/30/97 3.25 3.39
Shares of the Galaxy Connecticut Municipal Money Market Fund had a total
return of 1.40%, versus 1.38% for the retail shares of other Connecticut
tax-exempt money market funds tracked by Lipper. Shares of the Galaxy
Massachusetts Municipal Money Market Fund had a total return of 1.39%, versus
1.43% for the retail shares of other Massachusetts tax-exempt money market
funds, as tracked by Lipper.
GALAXY CONNECTICUT MUNICIPAL MONEY MARKET FUND
7-Day Average Yield
GALAXY
CONNECTICUT
MUNICIPAL
MONEY MARKET FUND
-----------------
4/30/96 3.06
5/31/96 2.86
6/30/96 2.79
7/31/96 2.84
8/31/96 2.77
9/30/96 3.01
10/31/96 2.84
11/30/96 2.84
12/31/96 3.17
1/31/97 2.85
2/29/97 2.80
3/31/97 2.85
4/30/97 3.44
<PAGE>
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PORTFOLIO REVIEWS
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GALAXY CONNECTICUT MUNICIPAL MONEY MARKET FUND
Distribution of Total Net Assets as of April 30, 1997
Connecticut .............................................................. 67%
Puerto Rico .............................................................. 13%
South .................................................................... 7%
Pacific .................................................................. 5%
North Central ............................................................ 4%
Net Other Assets & Liabilities ........................................... 4%
MAKING THE MOST OF CHANGING YIELDS
As yields stabilized and expectations for interest rates hikes by the Fed
abated in the final months of 1996, we added investments with longer maturities
to the Galaxy tax-exempt money market funds -- which helped to enhance Fund
returns. We kept a fraction of the Funds' investments in shorter-term issues,
however, due to year-end liquidity concerns.
When yields rose in the first months of 1997, we gave greater attention to
shorter-term instruments. This let us move into higher-yielding issues more
quickly. The strategy proved especially beneficial in April -- when large
outflows for tax payments decreased the relative demand for variable-rate
issues, and the yields for these securities rose sharply. As of April 30, 1997,
the Tax-Exempt Fund had an average maturity of 35 days, and the Connecticut and
Massachusetts Municipal Money Market Funds had average maturities of 34 days and
57 days, respectively.
KEEPING IT SHORT
We expect to keep average maturities for the Galaxy tax-exempt money
market funds short for the next few months. Tax-exempt money market yields could
still move higher as further inflation concerns put upward pressure on interest
rates. In addition, the fiscal year-ends for many municipalities should prompt
additional supplies of tax-exempt debt resulting in higher yields. Once we think
that interest rates and tax-exempt supplies have peaked, we may add longer-term
issues to make the most of the increase in yields.
GALAXY MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
Distribution of Total Net Assets as of April 30, 1997
Massachusetts ............................................................ 73%
Puerto Rico .............................................................. 8%
Mountain, Cash Equivalents & Net Other Assets & Liabilities .............. 5%
Pacific .................................................................. 5%
East ..................................................................... 4%
South .................................................................... 4%
North Central ............................................................ 1%
While we wait for yields to stabilize, we will continue to look for
changes in the spreads between yields of different instruments to further
enhance Fund returns. As in the past, we will stress a well-diversified mix of
high-quality investments that represent good value.
Karen Arneil and Tom DeMarco have managed the Galaxy Tax-Exempt Fund, the Galaxy
Connecticut Municipal Money Market Fund and the Galaxy Massachusetts Municipal
Money Market Fund since September 1996. They have managed money market
investments since 1993.
GALAXY MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
7-Day Average Yield
GALAXY
MASSACHUSETTS
MUNICIPAL
MONEY MARKET FUND
-----------------
4/30/96 3.02
5/31/96 2.88
6/30/96 2.79
7/31/96 2.82
8/31/96 2.80
9/30/96 3.00
10/31/96 2.83
11/30/96 2.90
12/31/96 3.15
1/31/97 2.84
2/28/97 2.74
3/31/97 2.83
4/30/97 3.47
- --------------------------------------------------------------------------------
Investment returns and principal values will vary with market conditions so that
an investor's shares, when redeemed, may be worth more or less than their
original cost. The Investment Advisor is presently waiving fees and/or
reimbursing expenses and may revise or discontinue such practice at any time.
Without such waivers and/or reimbursements, performance would be lower. Past
performance is no guarantee of future results. Total return figures in this
report include changes in share price, and reinvestment of dividends and capital
gains distributions, if any. There can be no assurance that the Funds will be
able to maintain a stable net asset value of $1.00 per share.
<PAGE>
- -----------
SHAREHOLDER
SERVICES
- -----------
AUTOMATIC INVESTMENT PROGRAM
The Golden Rule of investing is "pay yourself first." That is easy to do with
Galaxy's Automatic Investment Program. For as little as $50 per month deducted
directly from your checking, savings, or bank money market account, you can
consistently and conveniently add to your Galaxy investment. When you establish
an Automatic Investment Program, the $2,500 initial investment requirement for
Galaxy is waived. Of course, such a program does not assure a profit and does
not protect against loss in a declining market.
DIVERSIFICATION
A fundamental investment practice is "diversification." A well-balanced asset
allocation plan may help to control your risk while pursuing your goals. Many
mutual funds offer a low-cost way to diversify your investments while you
benefit from professional management. Galaxy's comprehensive array of investment
choices can be used in combination to match the needs of nearly everyone.
"A well-balanced asset allocation plan may help to control your risk while
pursuing your goals."
EXCHANGE PRIVILEGES
As your investment needs change, you can conveniently exchange your shares in
one fund for shares in another fund.
QUARTERLY MAGAZINE
Service also means giving you the practical information you need in language you
can understand to make smart investment decisions. The quarterly magazine,
Galaxy Observer, brings news, strategies and simple, straight-forward
explanations of investment basics and terminology.
CONSOLIDATED STATEMENTS
Timely, comprehensive mutual fund account statements offer detailed information
on your individual account. If you have a Fleet One or a Fleet Private Banking
Account, your Galaxy Fund information can be added to these statements.
INVESTMENT SPECIALISTS
In many Fleet branch offices or in the convenience of your home or office you
can visit one-on-one with an Investment Specialist* who can help you select the
investments that match your individual needs. This service is at no cost to you.
24-HOUR ACCESS TO REGISTERED REPRESENTATIVES
24 hours a day, seven days a week, 365 days a year, we are ready and available
to help. Our toll-free telephone lines offer round-the-clock access to Fund
information and service. Call 1-800-628-0414 for information on initial
purchases and current performance.
CUSTOMER SERVICE
Quality customer service is only a phone call away. Call 1-800-628-0414 between
9 a.m. and 5 p.m. to arrange bank wires, or to make telephone exchanges and
redemptions.
In addition, Galaxy's state-of-the-art InvestConnect automated voice response
system is available to serve you 24-hours a day, seven days a week by calling
1-800-FOR-GLXY (367-4599).
- --------------------------------------------------------------------------------
Certain shareholder services may not be available for Trust Share investors.
Please consult your Fund Prospectus.
* Shares of the Funds are distributed through First Data Distributors, Inc.,
member NASD and SIPC. Investment Specialists are registered representatives of
FIS Securities, Inc., member NASD, or Fleet Enterprises Inc., member NASD and
SIPC.
<PAGE>
------------
TRUSTEES
AND OFFICERS
------------
Dwight E. Vicks, Jr.
Chairman and Trustee
John T. O'Neill
President, Treasurer
and Trustee
Louis DeThomasis,
F.S.C., Ph.D.
Trustee
Donald B. Miller
Trustee
James M. Seed
Trustee
Bradford S. Wellman
Trustee
W. Bruce
McConnel, III, Esq.
Secretary
Jylanne Dunne
Vice President &
Assistant Treasurer
INVESTMENT ADVISOR
Fleet Investment
Advisors Inc.
75 State Street
Boston, MA
02109
DISTRIBUTOR
First Data
Distributors, Inc.
4400 Computer Drive
Westborough,
Massachusetts 01581
ADMINISTRATOR
First Data Investor Services Group, Inc.
4400 Computer Drive
Westborough,
Massachusetts 01581-5108
This report is submitted for the general information of shareholders of The
Galaxy Fund. It is not authorized for distribution to prospective investors
unless accompanied or preceded by an effective prospectus for the Fund, which
contains more information concerning the Fund's investment policies, as well as
fees and expenses and other pertinent information. Read the prospectus carefully
before you invest.
Shares of the funds are not deposits or obligations of, or guaranteed or
endorsed by Fleet Financial Group, Inc. or any of its affiliates, Fleet
Investment Advisors Inc., or any Fleet bank. Shares of the funds are not
federally insured by the U.S. Government, the Federal Deposit Insurance
Corporation, the Federal Reserve Board or any other agency. Investment return
and principal value will vary as a result of market conditions or other factors
so that shares of the funds, when redeemed, may be worth more or less than their
original cost. An investment in the funds involves investment risks, including
the possible loss of principal.
[Recycle Logo]
This report was printed on recycled paper.
<PAGE>
<TABLE>
---------------
MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS
THE GALAXY FUND APRIL 30, 1997 (UNAUDITED)
---------------
<CAPTION>
VALUE
PAR VALUE (NOTE 2)
- --------- --------
COMMERCIAL PAPER (A) - 59.65%
<S> <C> <C>
FINANCE - 37.53%
$ 30,000,000 ABN-AMRO North America Finance, Inc. 5.50%, 05/23/97 ............................. $ 29,899,167
40,000,000 ABN-AMRO North America Finance, Inc. 5.35%, 06/05/97 ............................. 39,791,944
30,000,000 AIG Funding, Inc. 5.50%, 05/02/97 ................................................ 29,995,417
10,500,000 AIG Funding, Inc. 5.47%, 05/15/97 ................................................ 10,477,664
50,000,000 American Express Credit Corp. 5.53%, 05/02/97 .................................... 49,992,319
25,000,000 Associates Corp. of North America 5.49%, 05/21/97 ................................ 24,923,750
25,000,000 Bank of New York 5.54%, 06/03/97 ................................................. 24,873,042
35,000,000 Bank of Nova Scotia 5.30%, 05/05/97 .............................................. 34,979,389
16,900,000 Deutsche Bank Financial, Inc. 5.48%, 05/08/97 .................................... 16,881,992
20,000,000 Ford Motor Credit Co. 5.55%, 06/10/97 ............................................ 19,876,667
35,000,000 Ford Motor Credit Co. 5.57%, 06/17/97 ............................................ 34,745,482
12,750,000 Ford Motor Co. 5.55%, 06/24/97 ................................................... 12,643,856
21,500,000 GTE Funding, Inc. 5.57%, 05/05/97 ................................................ 21,486,694
30,000,000 General Electric Capital Corp. 5.55%, 06/02/97 ................................... 29,852,000
15,000,000 General Electric Capital Corp. 5.26%, 08/26/97 ................................... 14,743,575
9,470,000 General Re Corp. 5.25%, 05/15/97 ................................................. 9,449,561
32,000,000 General Re Corp. 5.52%, 06/04/97 ................................................. 31,833,173
17,500,000 General Re Corp. 5.55%, 06/10/97 ................................................. 17,392,083
15,000,000 IBM Credit Corp. 5.56%, 06/19/97 ................................................. 14,886,483
25,000,000 Lloyds Bank Plc 5.51%, 05/28/97 .................................................. 24,896,687
25,000,000 Metlife Funding, Inc. 5.24%, 05/28/97 ............................................ 24,901,750
40,000,000 Morgan (J.P.) & Co., Inc. 5.55%, 05/01/97 ........................................ 40,000,000
30,000,000 Morgan (J.P.) & Co., Inc. 5.48%, 05/20/97 ........................................ 29,913,233
25,000,000 National Rural Utilities Cooperative Finance Corp. 5.55%, 06/11/97 ............... 24,841,979
35,000,000 National Rural Utilities Cooperative Finance Corp. 5.50%, 06/13/97 ............... 34,770,069
25,000,000 Nationsbank Corp. 5.38%, 05/12/97 ................................................ 24,958,903
25,000,000 Nationsbank Corp. 5.25%, 05/22/97 ................................................ 24,923,438
21,000,000 Pitney Bowes Credit Corp 5.51%, 06/23/97 ......................................... 20,829,649
25,185,000 Pitney Bowes Credit Corp. 5.28%, 07/21/97 ........................................ 24,885,802
35,000,000 Republic New York Corp. 5.24%, 08/18/97 .......................................... 34,444,706
30,000,000 Societe Generale 5.35%, 06/05/97 ................................................. 29,843,958
20,000,000 Toronto-Dominion Holdings USA, Inc. 5.34%, 05/02/97 .............................. 19,997,033
40,000,000 Toronto-Dominion Holdings USA, Inc. 5.29%, 06/06/97 .............................. 39,788,400
20,000,000 Toyota Motor Credit Corp. 5.30%, 05/07/97 ........................................ 19,982,333
12,427,000 Toyota Motor Credit Corp. 5.53%, 05/27/97 ........................................ 12,377,368
30,000,000 USAA Capital Corp. 5.53%, 06/10/97 ............................................... 29,815,667
17,000,000 USAA Capital Corp. 5.60%, 07/10/97 ............................................... 16,814,889
10,000,000 USAA Capital Corp. 5.28%, 07/11/97 ............................................... 9,895,867
--------------
956,605,989
--------------
CONSUMER STAPLES - 6.65%
35,000,000 Abbott Laboratories 5.50%, 05/07/97 .............................................. 34,967,917
35,000,000 Anheuser Busch Cos., Inc. 5.55%, 05/01/97 ........................................ 35,000,000
30,000,000 Colgate Palmolive Co. 5.52%, 05/08/97 ............................................ 29,967,800
12,400,000 Kellogg Co. 5.60%, 05/13/97 ...................................................... 12,376,853
27,100,000 Kellogg Co. 5.55%, 06/23/97 ...................................................... 26,878,571
30,615,000 Sara Lee Corp. 5.52%, 06/25/97 30,356,814
--------------
169,547,955
--------------
TECHNOLOGY - 3.86%
30,000,000 American Telephone & Telegraph Corp. 5.55%, 05/01/97 ............................. 30,000,000
20,000,000 American Telephone & Telegraph Corp. 5.26%, 08/14/97 ............................. 19,693,167
23,850,000 Ameritech Corp. 5.45%, 05/19/97 .................................................. 23,785,009
25,000,000 Ameritech Corp. 5.53%, 06/06/97 .................................................. 24,861,750
--------------
98,339,926
--------------
COMMUNICATION - 3.72%
40,000,000 Disney (Walt) Co. 5.60%, 05/01/97 ................................................ 40,000,000
32,300,000 Motorola, Inc. 5.50%, 05/06/97 ................................................... $ 32,275,326
22,764,000 Motorola, Inc. 5.53%, 07/09/97 ................................................... 22,522,721
--------------
94,798,047
--------------
TELECOMMUNICATIONS - 2.47%
41,000,000 Southwestern Bell Telephone Co. 5.50%, 05/06/97 .................................. 40,968,681
22,104,000 Southwestern Bell Telephone Co. 5.50%, 06/13/97 .................................. 21,958,789
--------------
62,927,470
--------------
BASIC MATERIALS - 2.15%
25,000,000 Cargill, Inc. 5.55%, 06/02/97 .................................................... 24,876,667
30,000,000 Cargill, Inc. 5.53%, 06/03/97 .................................................... 29,847,925
--------------
54,724,592
--------------
ENERGY - 1.72%
43,900,000 Shell Oil Co., Series A 5.51%, 05/01/97 .......................................... 43,900,000
--------------
CHEMICALS AND DRUGS - 0.98%
25,000,000 duPont (E.I.) deNemours & Co. 5.25%, 05/19/97 .................................... 24,934,375
--------------
ELECTRONICS - 0.57%
14,500,000 Emerson Electric Co. 5.47%, 05/08/97 ............................................. 14,484,577
--------------
TOTAL COMMERCIAL PAPER ........................................................... 1,520,262,931
(Cost $1,520,262,931) --------------
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - 32.98%
FEDERAL NATIONAL MORTGAGE ASSOCIATION (A) - 17.52%
25,020,000 5.22%, 05/02/97 .................................................................. 25,016,361
45,000,000 5.22%, 05/05/97 .................................................................. 44,973,833
29,030,000 5.19%, 05/09/97 .................................................................. 28,995,142
25,000,000 5.41%, 05/12/97 .................................................................. 24,958,674
40,000,000 5.23%, 05/29/97 .................................................................. 39,837,289
20,000,000 5.14%, 06/09/97 .................................................................. 19,888,633
30,000,000 5.47%, 06/12/97 .................................................................. 29,808,550
38,365,000 5.23%, 06/16/97 .................................................................. 38,108,615
40,000,000 5.50%, 06/18/97 .................................................................. 39,706,667
20,000,000 5.40%, 06/24/97 .................................................................. 19,838,000
30,775,000 5.53%, 07/11/97 .................................................................. 30,439,356
17,020,000 5.25%, 07/28/97 .................................................................. 16,801,577
40,000,000 5.54%, 08/21/97 .................................................................. 39,310,578
50,000,000 5.59%, 10/10/97 .................................................................. 48,742,250
--------------
446,425,525
--------------
FEDERAL HOME LOAN MORTGAGE CORPORATION (A) - 8.64%
55,000,000 5.42%, 05/13/97 .................................................................. 54,900,817
30,000,000 5.45%, 05/23/97 .................................................................. 29,900,083
48,880,000 5.51%, 06/20/97 .................................................................. 48,505,686
40,000,000 5.52%, 06/25/97 .................................................................. 39,662,667
12,697,000 5.51%, 07/08/97 .................................................................. 12,564,852
35,000,000 5.49%, 07/18/97 .................................................................. 34,584,054
--------------
220,118,159
--------------
FEDERAL HOME LOAN BANK (A) - 4.09%
62,780,000 5.27%, 05/01/97 .................................................................. 62,780,000
17,050,000 5.17%, 06/09/97 .................................................................. 16,954,506
25,000,000 5.27%, 09/30/97 .................................................................. 24,443,722
--------------
104,178,228
--------------
STUDENT LOAN MARKETING ASSOCIATION - 2.73%
40,000,000 5.48%, 06/30/97 (A) .............................................................. 39,634,667
30,000,000 5.55%, 07/17/97 (B) .............................................................. 30,002,098
--------------
69,636,765
--------------
TOTAL U.S. GOVERNMENT AND
AGENCY OBLIGATIONS ............................................................... 840,358,677
(Cost $840,358,677) --------------
CERTIFICATES OF DEPOSITS - 5.49%
40,000,000 Bayerische Landesbank, Yankee 5.38%, 05/05/97 .................................... 40,000,044
40,000,000 Canadian Imperial Bank of Commerce 5.57%, 05/20/97 ............................... 40,000,607
30,000,000 Deutsche Bank AG 5.52%, 07/28/97 ................................................. 30,002,317
30,000,000 US Bank of Oregon 5.58%, 06/09/97 ................................................ 30,000,000
--------------
TOTAL CERTIFICATES OF DEPOSITS ................................................... 140,002,968
(Cost $140,002,968) --------------
REPURCHASE AGREEMENT - 2.04%
52,004,582 HSBC Securities 5.35%, 05/01/97, dated 04/30/97 Repurchase Price $52,012,310
(Collateralized by U.S. Treasury Obligations 7.75% to 11.25%, due 2000 to 2015;
Total Par $50,580,000
Market Value $53,435,475) ........................................................ 52,004,582
--------------
TOTAL REPURCHASE AGREEMENT ....................................................... 52,004,582
(Cost $52,004,582) --------------
TOTAL INVESTMENTS - 100.16% ..................................................................... 2,552,629,158
(Cost $2,552,629,158)* --------------
NET OTHER ASSETS AND LIABILITIES - (0.16)% ...................................................... (4,069,229)
--------------
NET ASSETS - 100.00% ............................................................................ $2,548,559,929
==============
- ----------
* Aggregate cost for Federal tax purposes
(A) Annualized yields at time of purchase.
(B) Interest is reset at various time intervals.
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
---------------
GOVERNMENT FUND
PORTFOLIO OF INVESTMENTS
THE GALAXY FUND APRIL 30, 1997 (UNAUDITED)
---------------
<CAPTION>
VALUE
PAR VALUE (NOTE 2)
- --------- --------
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - 83.66%
FEDERAL NATIONAL MORTGAGE ASSOCIATION (A) - 27.03%
<S> <C> <C>
$ 21,200,000 5.22%, 05/02/97 .................................................................. $ 21,196,926
20,000,000 5.22%, 05/05/97 .................................................................. 19,988,356
49,275,000 5.19%, 05/09/97 .................................................................. 49,216,892
15,000,000 5.41%, 05/12/97 .................................................................. 14,975,204
25,000,000 5.23%, 05/29/97 .................................................................. 24,898,306
30,000,000 5.39%, 06/03/97 .................................................................. 29,851,775
20,000,000 5.14%, 06/09/97 .................................................................. 19,888,633
35,000,000 5.47%, 06/12/97 .................................................................. 34,777,050
29,815,000 5.50%, 06/18/97 .................................................................. 29,597,152
25,000,000 5.40%, 06/23/97 .................................................................. 24,801,250
30,000,000 5.54%, 08/21/97 .................................................................. 29,482,933
25,000,000 5.59%, 10/10/97 .................................................................. 24,371,125
--------------
323,045,602
--------------
FEDERAL HOME LOAN MORTGAGE CORPORATION (A) - 22.61%
45,395,000 5.17%, 05/02/97 .................................................................. 45,388,350
40,000,000 5.22%, 05/08/97 .................................................................. 39,959,400
22,600,000 5.42%, 05/13/97 .................................................................. 22,559,169
44,865,000 5.18%, 05/16/97 .................................................................. 44,768,166
18,275,000 5.19%, 05/30/97 .................................................................. 18,198,595
25,000,000 5.50%, 06/24/97 .................................................................. 24,793,750
25,000,000 5.52%, 06/25/97 .................................................................. 24,789,167
11,275,000 5.48%, 06/26/97 .................................................................. 11,178,887
24,000,000 5.50%, 07/02/97 .................................................................. 23,772,667
15,000,000 5.49%, 07/18/97 .................................................................. 14,821,738
--------------
270,229,889
--------------
FEDERAL HOME LOAN BANK (A) - 16.39%
61,350,000 5.27%, 05/01/97 .................................................................. 61,350,000
13,650,000 5.41%, 05/22/97 .................................................................. 13,606,923
20,000,000 5.23%, 07/10/97 .................................................................. 19,796,611
30,285,000 5.46%, 07/18/97 .................................................................. 29,926,728
22,500,000 5.25%, 07/25/97 .................................................................. 22,221,094
25,000,000 5.51%, 08/25/97 .................................................................. 24,556,139
25,000,000 5.27%, 09/30/97 .................................................................. 24,443,722
--------------
195,901,217
--------------
STUDENT LOAN MARKETING ASSOCIATION - 6.67%
10,180,000 5.28%, 05/01/97 (A) .............................................................. 10,180,000
14,970,000 5.42%, 06/20/97 (A) .............................................................. 14,857,309
30,000,000 5.48%, 06/30/97 (A) .............................................................. 29,726,000
25,000,000 5.55%, 07/17/97 (B) .............................................................. 25,001,749
--------------
79,765,058
--------------
FEDERAL FARM CREDIT BANK (A) - 5.76%
24,950,000 5.42%, 05/06/97 .................................................................. 24,931,218
17,000,000 5.36%, 05/23/97 .................................................................. 16,944,317
12,090,000 5.39%, 06/04/97 .................................................................. 12,028,455
15,000,000 5.47%, 06/06/97 .................................................................. 14,917,950
--------------
68,821,940
--------------
U.S. TREASURY NOTES - 5.20%
25,000,000 6.00%, 08/31/97 .................................................................. 25,047,780
37,000,000 6.00%, 11/30/97 .................................................................. 37,109,482
--------------
62,157,262
--------------
TOTAL U.S. GOVERNMENT AND
AGENCY OBLIGATIONS .............................................................. 999,920,968
(Cost $999,920,968) --------------
REPURCHASE AGREEMENT - 16.56%
197,968,839 HSBC Securities 5.35%, 05/01/97, dated 04/30/97
Repurchase Price $197,998,259
(Collateralized by U.S. Treasury Obligations
4.75% to 10.00%, due 1998 to 2010;
Total Par $188,650,000;
Market Value $203,742,410) ...................................................... 197,968,839
--------------
TOTAL REPURCHASE AGREEMENT ...................................................... 197,968,839
(Cost $197,968,839) --------------
TOTAL INVESTMENTS - 100.22% ..................................................................... 1,197,889,807
(Cost $1,197,889,807)* --------------
NET OTHER ASSETS AND LIABILITIES - (0.22)% ...................................................... (2,590,509)
--------------
NET ASSETS - 100.00% ............................................................................ $1,195,299,298
==============
- ----------
* Aggregate cost for Federal tax purposes.
(A) Annualized yields at time of purchase.
(B) Interest is reset at various time intervals.
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
---------------
TAX-EXEMPT FUND
PORTFOLIO OF INVESTMENTS
THE GALAXY FUND APRIL 30, 1997 (UNAUDITED)
---------------
<CAPTION>
VALUE
PAR VALUE (NOTE 2)
- --------- --------
MUNICIPAL SECURITIES - 99.37%
ALABAMA - 1.59%
<S> <C> <C>
$ 1,000,000 Phenix County Industrial Development Board
Environmental Improvement Revenue
Georgia Kraft Project
3.80%, 12/01/15 (A)
LOC: Deutsche Bank AG ............................................................ $ 1,000,000
4,000,000 Montgomery Industrial Development Board
PCR, Series 1990
3.60%, 06/06/97
Guaranteed: General Electric Co. ................................................. 4,000,000
--------------
5,000,000
--------------
ALASKA - 0.32%
1,000,000 Valdez, Marine Terminal Revenue 3.50%, 05/02/97
Guaranteed: ARCO ................................................................. 1,000,000
--------------
ARIZONA - 2.87%
5,200,000 Mesa Municipal Development Corp.
Series 1996-A 4.30%, 05/20/97
LOC: West Deutsche Landesbank .................................................... 5,200,000
1,800,000 Mesa Municipal Development Corp.
Series 1985
3.75%, 06/18/97
LOC: West Deutsche Landesbank .................................................... 1,800,000
2,000,000 Pima County, IDA
Tucson Electric Power, Series A 4.50%, 06/15/22 (A)
LOC: Societe Generale ............................................................ 2,000,000
--------------
9,000,000
--------------
CALIFORNIA - 2.13%
4,200,000 Los Angeles Regional Airports Improvement Corp.
Lease Revenue, Sublease
LA International Airport 3.95%, 12/01/25 (A)
LOC: Societe Generale ............................................................ 4,200,000
1,100,000 Los Angeles Regional Airports Improvement Corp.
Lease Revenue, American Airlines
LA International Airport, Series B 3.95%, 12/01/24 (A)
LOC: Wachovia Bank ............................................................... 1,100,000
1,400,000 Los Angeles Regional Airports Improvement Corp.
Lease Revenue, American Airlines
LA International Airport, Series D 3.95%, 12/01/24 (A)
LOC: Wachovia Bank ............................................................... 1,400,000
--------------
6,700,000
--------------
COLORADO - 0.96%
3,000,000 Arapahoe County School District 05
Cherry Creek, TAN 4.50%, 06/30/97 ................................................ 3,003,164
--------------
CONNECTICUT - 1.91%
5,000,000 Cheshire, BAN
4.00%, 08/08/97 5,003,414
1,000,000 Connecticut State Special Assessment
Unemployment Compensation Advisory Fund
Series C 3.90%, 11/15/01 (A) ..................................................... 1,000,648
--------------
6,004,062
--------------
DELAWARE - 1.52%
4,000,000 Delaware State Economic Development
Authority, Industrial Development
Gore & Associates, Otts Chapel 3.50%, 06/11/97
LOC: Morgan Guaranty ............................................................. 4,000,000
800,000 Wilmington Hospital Revenue
Franciscan Health System, Series A 3.95%, 07/01/11 (A)
LOC: Societe Generale ............................................................ 800,000
--------------
4,800,000
--------------
DISTRICT OF COLUMBIA - 0.38%
1,200,000 District of Columbia
Series A-3, GO 4.15%, 10/01/07 (A) ............................................... 1,200,000
--------------
FLORIDA - 3.20%
3,000,000 Pinellas County Educational Facilities Authority 3.60%, 06/09/97
Insured: MBIA .................................................................... 3,000,000
5,000,000 Pinellas County Educational Facilities Authority
Pooled Independent Higher Education, GO 3.70%, 07/09/97
Insured: MBIA .................................................................... 5,000,000
1,000,000 Putnam County Development Authority, PCR
Seminole Electric Cooperative, Series D
3.45%, 12/15/09 (A) .............................................................. 1,000,000
1,050,000 West Orange Memorial Hospital Tax District
Revenue, Series A-2
3.40%, 05/05/97
LOC: Rabobank .................................................................... 1,050,000
--------------
10,050,000
--------------
GEORGIA - 3.51%
7,000,000 De Kalb County, TAN
4.00%, 12/31/97 .................................................................. 7,024,500
2,500,000 Georgia Municipal Gas Authority Revenue
Transco Portfolio I Project, Series A 3.50%, 05/05/97
LOC: Credit Suisse ............................................................... 2,500,000
1,500,000 Georgia Municipal Gas Authority Revenue
Transco Portfolio I Project, Series A 3.35%, 05/07/97
LOC: Credit Suisse ............................................................... 1,500,000
--------------
11,024,500
--------------
ILLINOIS - 7.88%
8,500,000 Chicago O'Hare International Airport Revenue
American Airlines, Series C 3.85%, 12/01/17 (A) .................................. 8,500,000
1,750,000 Chicago O'Hare International Airport Revenue
General Airport, Second Lien, Series A 4.50%, 01/01/15 (A)
LOC: Societe Generale ............................................................ 1,750,000
1,800,000 Chicago O'Hare International Airport Revenue
General Airport, Second Lien, Series C 4.50%, 01/01/18 (A)
LOC: Societe Generale ............................................................ 1,800,000
1,150,000 Illinois Educational Facilities Authority Revenue
Series 1995
3.50%, 05/08/97
LOC: Northern Trust .............................................................. 1,150,000
1,100,000 Illinois Health Facilities Authority Revenue
Series 1989-A 3.45%, 05/12/97
LOC: Northern Trust .............................................................. 1,100,000
2,645,000 Illinois Health Facilities Authority Revenue
Series 1989-A 3.65%, 06/10/97
Insured: MBIA .................................................................... 2,645,000
1,500,000 Illinois Health Facilities Authority Revenue
Series 1989-A 3.75%, 08/05/97
LOC: Northern Trust .............................................................. 1,500,000
3,950,000 Illinois Health Facilities Authority Revenue
Series 1985-D 3.40%, 05/05/97
Insured: MBIA .................................................................... 3,950,000
2,335,000 Illinois Health Facilities Authority
Series 1985-D 3.65%, 06/12/97
Insured: MBIA .................................................................... 2,335,000
--------------
24,730,000
--------------
INDIANA - 2.44%
1,000,000 Mt. Vernon Pollution Control & Solid Waste
Disposal Revenue, Series 1989 A 3.40%, 06/16/97
Guaranteed: General Electric Co. ................................................. 1,000,000
2,000,000 Mt. Vernon Pollution Control & Solid Waste
Disposal Revenue, Series 1989 A 3.50%, 06/23/97
Guaranteed: General Electric Co. ................................................. 2,000,000
2,050,000 Sullivan County, PCR, Series 1985 L2
3.50%, 05/08/97
Guaranteed: National Rural Utilities ............................................. 2,050,000
1,790,000 Sullivan County, PCR, Series 1985 L4
3.30%, 05/06/97
Guaranteed: National Rural Utilities ............................................. 1,790,000
810,000 Sullivan County, PCR, Series 1985 L5
3.45%, 05/12/97
Guaranteed: National Rural Utilities ............................................. 810,000
--------------
7,650,000
--------------
KANSAS - 1.27%
500,000 Burlington, PCR
Series 1985 C-1
3.55%, 06/16/97
Guaranteed: National Rural Utilities ............................................. 500,000
1,000,000 Burlington, PCR
Series 1985 C-1
3.90%, 06/19/97
Guaranteed: National Rural Utilities ............................................. 1,000,000
2,500,000 Burlington, PCR
Series 1985 C-2
3.60%, 06/09/97
Guaranteed: National Rural Utilities ............................................. 2,500,000
--------------
4,000,000
--------------
LOUISIANA - 3.30%
1,800,000 Lake Charles Harbor & Terminal District
Port Facilities Revenue, Citgo Petroleum Corp. 4.50%, 08/01/07 (A)
LOC: Westdeutsc .................................................................. 1,800,000
1,150,000 Louisiana Public Facilities Authority
College & University Equipment & Capital
Series A 4.00%, 09/01/10 (A)
SPA: Societe Generale ............................................................ 1,150,000
1,000,000 Louisiana Public Facilities Authority Revenue
PCR, Ciba-Geigy Corp. Project 4.50%, 12/01/04 (A)
LOC: Swiss Bank .................................................................. 1,000,000
1,400,000 Louisiana State Offshore Terminal Authority
Deepwater Port Revenue, First Stage A
Loop, Inc. 3.90%, 09/01/08 (A)
LOC: Union Bank of Switzerland ................................................... 1,400,000
5,000,000 St. James, PCR
Texaco Project, Series A 4.10%, 05/21/97
Guaranteed: Texaco, Inc. ......................................................... 5,000,000
--------------
10,350,000
--------------
MASSACHUSETTS - 4.77%
2,000,000 Massachusetts Bay Transportation Authority
Series C 3.40%, 05/06/97
LOC: West Deutsche Landesbank .................................................... 2,000,000
6,200,000 Massachusetts Bay Transportation Authority
Series C 3.80%, 05/21/97
LOC: West Deutsche Landesbank .................................................... 6,200,000
5,000,000 Massachusetts State Port Authority
3.70%, 06/17/97
LOC: Canadian Imperial Bank of Commerce .......................................... 5,000,000
1,783,570 North Adams, BAN, Lot B
4.25%, 07/01/97 .................................................................. 1,783,570
--------------
14,983,570
--------------
MICHIGAN - 3.51%
1,140,000 Cornell Township
Economic Development Corp., IDR
Mead-Escanaba Paper Co. 3.60%, 05/15/97
LOC: Credit Suisse ............................................................... 1,140,000
3,500,000 Cornell Township
Economic Development Corp., IDR
Mead-Escanaba Paper Co. 3.70%, 06/02/97
LOC: Credit Suisse ............................................................... 3,500,000
2,000,000 Delta County
Economic Development Corp., IDR
Mead-Escanaba Paper Co. 4.15%, 05/08/97
LOC: Swiss Bank Corp. ............................................................ 2,000,000
4,200,000 Michigan State Building Authority
Series 1
3.55%, 05/01/97
LOC: Canadian Imperial Bank of Commerce .......................................... 4,200,000
200,000 Michigan State Strategic Fund, PCR
Consumers Power Project 4.00%, 04/15/18 (A)
LOC: Union Bank of Switzerland ................................................... 200,000
--------------
11,040,000
--------------
MINNESOTA - 3.60%
3,500,000 Rochester Health Care Facilities Revenue 3.55%, 06/09/97
Guaranteed: Mayo Foundation ...................................................... 3,500,000
1,000,000 Rochester Health Care Facilities Revenue
Mayo Foundation/Mayo Medical Center
Series A 3.45%, 05/22/97
Guaranteed: Mayo Foundation ...................................................... 1,000,000
3,000,000 Rochester Health Care Facilities Revenue
Mayo Foundation/Mayo Medical Center
Series C 3.40%, 05/08/97
Guaranteed: Mayo Foundation ...................................................... 3,000,000
2,700,000 Rochester Health Care Facilities Revenue
Mayo Foundation/Mayo Medical Center
Series C 3.40%, 05/07/97
Guaranteed: Mayo Foundation ...................................................... 2,700,000
1,100,000 Rochester Health Care Facilities Revenue
Mayo Foundation/Mayo Medical Center
Series E 3.65%, 06/05/97
Guaranteed: Mayo Foundation ...................................................... 1,100,000
--------------
11,300,000
--------------
MISSISSIPPI - 1.26%
2,950,000 Claiborne County, PCR
Series 1985 G-1
3.45%, 05/13/97
Guaranteed: National Rural Utilities ............................................. 2,950,000
1,000,000 Claiborne County, PCR
Series 1985 G-2
3.70%, 06/10/97
Guaranteed: National Rural Utilities ............................................. 1,000,000
--------------
3,950,000
--------------
MISSOURI - 0.53%
1,655,000 Missouri State Environmental Improvement
& Energy Resource Authority, PCR
Union Electric, Series A 3.65%, 06/12/97
LOC: Union Bank of Switzerland ................................................... 1,655,000
--------------
NEW JERSEY - 4.59%
9,000,000 New Jersey State, Series 1997-A
3.60%, 05/19/97
LOC: Union Bank of Switzerland ................................................... 9,000,000
4,000,000 New Jersey State, Series 1997-A
3.65%, 06/09/97
LOC: Union Bank of Switzerland ................................................... 4,000,000
1,400,000 New Jersey State Turnpike Authority
Series D
4.35%, 01/01/18 (A)
Insured: FGIC; LOC: Societe Generale ............................................. 1,400,000
--------------
14,400,000
--------------
NEW YORK - 5.79%
7,000,000 Municipal Assistance Corp. for New York
Series 61
6.00%, 07/01/97 7,069,370 ........................................................ 7,069,370
2,100,000 New York, GO 3.60%, 05/12/97
Insured: FSA ..................................................................... 2,100,000
5,000,000 New York Municipal Water Finance Authority
3.75%, 07/31/97
LOC: Canadian Imperial Bank of Commerce .......................................... 5,000,000
1,000,000 New York State Energy Research
& Development Authority, PCR
Niagara Mohawk Power Corp., Series C 4.00%, 12/01/25 (A)
LOC: Canadian Imperial Bank of Commerce .......................................... 1,000,000
2,000,000 New York State Energy Research
& Development Authority, PCR
Orange & Rockland Project, Series A 4.35%, 10/01/14 (A)
Insured: FGIC; LOC: Societe Generale ............................................. 2,000,000
1,000,000 New York State Housing Finance Agency
Revenue, Hospital Special Surgery Staff
Series A 4.55%, 11/01/10 (A)
LOC: Chemical Bank ............................................................... 1,000,000
--------------
18,169,370
--------------
NORTH CAROLINA - 2.24%
5,700,000 North Carolina Eastern Municipal Power
Agency, Series B
3.50%, 05/06/97
LOC: Morgan Guaranty/Union Bank
of Switzerland ................................................................... 5,700,000
1,315,000 North Carolina Medical Care Commission
Wake County Hospital System
4.00%, 10/01/97
Insured: MBIA .................................................................... 1,317,906
--------------
7,017,906
--------------
OHIO - 1.91%
1,900,000 Ohio State Air Quality Development Authority
Revenue, Cincinnati Gas & Electric, Series A
3.90%, 09/01/30 (A)
LOC: ABN-AMRO Bank ............................................................... 1,900,000
1,000,000 Ohio State Air Quality Development Authority
Revenue, Environmental Mead Corp.
3.85%, 10/01/01 (A)
LOC: Deutsche Bank ............................................................... 1,000,000
3,100,000 Toledo-Lucas County Port Authority
CSX Transportation, Inc. Project
3.45%, 05/14/97
LOC: Bank of Nova Scotia ......................................................... 3,100,000
--------------
6,000,000
--------------
OREGON - 0.92%
600,000 Port Portland, PCR
Reynolds Metals
3.95%, 12/01/09 (A)
LOC: Bank of Nova Scotia ......................................................... 600,000
100,000 Umatilla County Hospital Facilities Authority
Hospital Revenue
Franciscan Health System, Series A
3.95%, 12/01/24 (A)
LOC: Toronto Dominion Bank ....................................................... 100,000
2,200,000 Umatilla County Hospital Facilities Authority
Hospital Revenue
Franciscan Health System, Series B
3.95%, 12/01/24 (A)
LOC: Toronto Dominion ............................................................ 2,200,000
--------------
2,900,000
--------------
PENNSYLVANIA - 10.19%
2,000,000 Allegheny County, HDA
Health Center Development, Inc., Series B
3.90%, 06/16/97
LOC: PNC Bank .................................................................... 2,000,000
3,300,000 Allegheny County, HDA
Health Center Development, Inc., Series B
3.85%, 06/17/97
LOC: PNC Bank .................................................................... 3,300,000
1,000,000 Allegheny County, HDA
Health Center Development, Inc., Series B
3.70%, 07/10/97
LOC: PNC Bank .................................................................... 1,000,000
8,200,000 Beaver County, IDA, PCR
3.45%, 06/09/97
LOC: Swiss Bank .................................................................. 8,200,000
4,000,000 Beaver County, IDA, PCR
3.80%, 06/18/97
LOC: Swiss Bank Corp. ............................................................ 4,000,000
5,000,000 Delaware County, IDA, PCR
Series 1998-B
4.30%, 05/14/97
Insured: FGIC .................................................................... 5,000,000
4,600,000 Delaware County , IDA, PCR
Series 1998-B
3.65%, 06/12/97
Insured: FGIC .................................................................... 4,600,000
3,800,000 Philadelphia Gas Works Revenue, Series B
3.65%, 06/13/97
LOC: Canadian Imperial Bank of Commerce .......................................... 3,800,000
100,000 St. Mary Hospital Authority
Franciscan Health System, Series B
3.85%, 12/01/24 (A)
LOC: Toronto Dominion ............................................................ 100,000
--------------
32,000,000
--------------
SOUTH CAROLINA - 0.51%
1,600,000 South Carolina Jobs Economic Development
Authority, St. Francis Hospital
3.95%, 07/01/22 (A)
LOC: Chemical Bank ............................................................... 1,600,000
--------------
TENNESSEE - 0.64%
300,000 Metropolitan Nashville Airport Authority
Special Facilities Revenue
American Airlines, Series A
3.95%, 10/01/12 (A)
LOC: Credit Suisse ............................................................... 300,000
1,700,000 Metropolitan Nashville Airport Authority
Special Facilities Revenue
American Airlines, Series B
3.95%, 10/01/12 (A)
LOC: Bayerische Landesbank ....................................................... 1,700,000
--------------
2,000,000
--------------
TEXAS - 15.55%
1,000,000 Austin Utility System Revenue
3.65%, 06/13/97
LOC: Morgan Guaranty ............................................................. 1,000,000
4,000,000 Brazos River Authority, PCR
Texas Utilities, Series B
3.90%, 02/01/32 (A)
Insured: MBIA .................................................................... 4,000,000
500,000 Brownsville Utility System Revenue
Series A
3.60%, 06/10/97
LOC: Toronto Dominion ............................................................ 500,000
300,000 Grapevine, IDC
Multiple Mode, American Airlines, Series A3
3.95%, 12/01/24 (A)
LOC: Morgan Guaranty ............................................................. 300,000
500,000 Grapevine, IDC
Multiple Mode, American Airlines, Series A4
3.95%, 12/01/24 (A)
LOC: Morgan Guaranty ............................................................. 500,000
10,600,000 Guadalupe-Blanco River Authority, PCR
Central Power & Light Co. Project
4.00%, 11/01/15 (A) .............................................................. 10,600,000
5,000,000 Harris County, HFDC, Series 1993
3.75%, 06/30/97
LOC: Credit Suisse ............................................................... 5,000,000
1,300,000 Harris County HFDC
Texas Medical Center Project
4.00%, 02/15/22 (A)
Insured: MBIA .................................................................... 1,300,000
300,000 Lone Star Airport Improvement Authority
Revenue, Multiple Mode, Series A-3
3.95%, 12/01/14 (A)
LOC: Royal Bank of Canada ........................................................ 300,000
1,300,000 Lone Star Airport Improvement Authority
Revenue, Multiple Mode, Series A-4
3.95%, 12/01/14 (A)
LOC: Royal Bank of Canada ........................................................ 1,300,000
300,000 Lone Star Airport Improvement Authority
Revenue, Multiple Mode, Series A-5
3.95%, 12/01/14 (A)
LOC: Royal Bank of Canada ........................................................ 300,000
700,000 Lone Star Airport Improvement Authority
Revenue, Multiple Mode, Series B-5
3.95%, 12/01/14 (A)
LOC: Royal Bank of Canada ........................................................ 700,000
200,000 North Central HFDC
Hospital Revenue, Series C
Presbyterian Medical Center 3.95%, 12/01/15 (A)
Insured: MBIA .................................................................... 200,000
1,200,000 Plano, HFDC
Hospital Revenue, Series 1989
3.45%, 06/11/97
Insured: MBIA .................................................................... 1,200,000
4,600,000 Plano, HFDC
Hospital Revenue, Series 1989
3.70%, 06/05/97
Insured: MBIA .................................................................... 4,600,000
2,800,000 Sabine River Authority, PCR
Texas Utilities Project, Series A 4.00%, 03/01/26 (A)
Insured: AMBAC ................................................................... 2,800,000
1,200,000 Texas A & M, Board of Regents
Permanent University Fund, Series B
3.75%, 05/20/97
LOC: Morgan Guaranty ............................................................. 1,200,000
13,000,000 Texas State, TRAN
4.75%, 08/29/97 .................................................................. 13,043,122
--------------
48,843,122
--------------
VIRGINIA - 1.69%
1,000,000 Peninsula Ports Authority Coal Terminal
Dominion Terminal Project, Series A
3.95%, 05/27/97
LOC: National Westminster ........................................................ 1,000,000
3,000,000 Peninsula Ports Authority Coal Terminal
Dominion Terminal Project, Series A
3.75%, 06/18/97
LOC: National Westminster ........................................................ 3,000,000
1,300,000 Peninsula Ports Authority Coal Terminal
Dominion Terminal Project, Series C
3.85%, 07/01/16 (A)
LOC: National Westminster ........................................................ 1,300,000
--------------
5,300,000
--------------
WASHINGTON - 3.20%
6,750,000 Seattle Municipal Power & Light Revenue
3.30%, 05/07/97
LOC: Morgan Guaranty ............................................................. 6,750,000
3,300,000 Washington State Public Power Supply System
Nuclear Project No.1 Revenue, Series 1A-1
4.45%, 07/01/17 (A)
LOC: Bank of America ............................................................. 3,300,000
--------------
10,050,000
--------------
WYOMING - 5.19%
3,100,000 Converse County, PCR
3.40%, 05/07/97
LOC: Deutsche Bank ............................................................... 3,100,000
2,500,000 Converse County, PCR
3.40%, 05/13/97
LOC: Deutsche Bank ............................................................... 2,500,000
2,400,000 Converse County, PCR
Pacificorp Project
3.35%, 05/09/97
LOC: Deutsche Bank ............................................................... 2,400,000
2,700,000 Gillette, PCR
Pacificorp Project
3.35%, 05/07/97
LOC: Deutsche Bank ............................................................... 2,700,000
3,000,000 Lincoln County, PCR
3.55%, 06/06/97
LOC: Union Bank of Switzerland ................................................... 3,000,000
2,600,000 Platte County, PCR
Tri-State G & T, Series A
4.15%, 07/01/14 (A)
LOC: Societe Generale ............................................................ 2,600,000
--------------
16,300,000
--------------
TOTAL MUNICIPAL SECURITIES ....................................................... 312,020,694
(Cost $312,020,694) --------------
SHARES
------
INVESTMENT COMPANY - 0.22%
700,437 Money Market Obligations Trust ................................................... 700,437
--------------
TOTAL INVESTMENT COMPANY 700,437
(Cost $700,437) --------------
TOTAL INVESTMENTS - 99.59% ...................................................................... 312,721,131
(Cost $312,721,131)* --------------
NET OTHER ASSETS AND LIABILITIES - 0.41% ........................................................ 1,283,887
--------------
NET ASSETS - 100.00% ............................................................................ $ 314,005,018
==============
</TABLE>
- ----------
* Aggregage cost for Federal tax purposes.
(A) Variable rate demand notes are payable upon not more than one, seven or
thirty business days notice. Put bonds and notes have demand features
which mature within one year. The interest rate shown reflects the rate
in effect at April 30, 1997.
AMBAC American Municipal Bond Assurance Corp.
ARCO Atlantic Richfield Co.
BAN Bond Anticipation Notes
FGIC Federal Guaranty Insurance Corp.
FSA Financial Security Assurance, Inc.
GO General Obligation
HDA Hospital Development Authority
HFDC Health Facilities Development Corp.
IDA Industrial Development Authority
IDC Industrial Development Corp.
IDR Industrial Development Revenue
LOC Letter of Credit
MBIA Municipal Bond Insurance Association
PCR Pollution Control Revenue
SPA Stand-by Purchase Agreement
TAN Tax Anticipation Notes
TRAN Tax & Revenue Anticipation Notes
See Notes to Financial Statements.
<PAGE>
<TABLE>
---------------
U.S. TREASURY FUND
PORTFOLIO OF INVESTMENTS
THE GALAXY FUND APRIL 30, 1997 (UNAUDITED)
---------------
<CAPTION>
VALUE
PAR VALUE (NOTE 2)
- --------- --------
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - 99.58%
U.S. TREASURY BILLS (A) - 35.71%
<S> <C> <C>
$ 25,000,000 5.02%, 05/01/97 .............................................................. $ 25,000,000
25,000,000 5.02%, 05/08/97 .............................................................. 24,975,549
20,000,000 5.03%, 05/15/97 .............................................................. 19,960,917
25,000,000 5.19%, 05/29/97 .............................................................. 24,899,181
50,000,000 4.99%, 06/05/97 .............................................................. 49,753,979
25,000,000 5.15%, 06/12/97 .............................................................. 24,849,938
30,000,000 5.05%, 06/19/97 .............................................................. 29,792,158
30,000,000 5.14%, 07/17/97 .............................................................. 29,669,862
30,000,000 5.19%, 07/24/97 .............................................................. 29,638,800
15,000,000 5.19%, 08/14/97 .............................................................. 14,772,938
25,000,000 5.30%, 08/21/97 .............................................................. 24,587,778
-------------
297,901,100
-------------
U.S. TREASURY NOTES - 30.00%
30,000,000 6.50%, 05/15/97 .............................................................. 30,013,979
25,000,000 6.13%, 05/31/97 .............................................................. 25,014,648
30,000,000 6.75%, 05/31/97 .............................................................. 30,031,378
30,000,000 5.63%, 06/30/97 .............................................................. 30,011,102
30,000,000 6.38%, 06/30/97 .............................................................. 30,055,836
60,000,000 5.88%, 07/31/97 .............................................................. 60,079,255
45,000,000 6.00%, 08/31/97 .............................................................. 45,062,147
-------------
250,268,345
-------------
STUDENT LOAN MARKETING ASSOCIATION - 19.80%
122,820,000 5.28%, 05/01/97 (A) .......................................................... 122,820,000
10,000,000 5.42%, 06/20/97 (A) .......................................................... 9,924,722
12,600,000 5.48%, 06/30/97 (A) .......................................................... 12,484,920
20,000,000 5.55%, 07/17/97 (B) .......................................................... 20,001,399
-------------
165,231,041
-------------
FEDERAL HOME LOAN BANK (A) - 12.15%
25,000,000 5.27%, 05/01/97 .............................................................. 25,000,000
25,000,000 5.35%, 05/05/97 .............................................................. 24,985,139
20,000,000 5.34%, 05/16/97 .............................................................. 19,955,500
11,600,000 5.41%, 05/22/97 .............................................................. 11,563,663
20,000,000 5.70%, 06/06/97 .............................................................. 19,896,600
-------------
101,400,902
-------------
FEDERAL FARM CREDIT BANK (A) - 1.92%
$ 16,000,000 5.36%, 05/07/97 .............................................................. $ 15,985,707
-------------
TOTAL INVESTMENTS - 99.58% ...................................................................... 830,787,095
(Cost $830,787,095)* -------------
NET OTHER ASSETS AND LIABILITIES - 0.42% ........................................................ 3,486,905
-------------
NET ASSETS - 100.00% ............................................................................ $ 834,274,000
=============
- ----------
* Aggregage cost for Federal tax purposes.
(A) Annualized yields at time of purchase.
(B) Interest is reset at various time intervals.
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
---------------
CONNECTICUT MUNICIPAL MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS
THE GALAXY FUND APRIL 30, 1997 (UNAUDITED)
---------------
<CAPTION>
VALUE
PAR VALUE (NOTE 2)
--------- --------
MUNICIPAL SECURITIES - 95.54%
ALABAMA - 1.63%
<S> <C> <C>
$ 1,300,000 McIntosh Industrial Development Board, PCR
Ciba-Geigy Corp. Project
4.00%, 07/01/04 (A)
LOC: Credit Suisse ............................................................... $ 1,300,000
600,000 North Alabama Environmental Improvement
Authority, PCR
Reynolds Metals
3.95%, 12/01/00 (A)
LOC: Bank of Nova Scotia ......................................................... 600,000
--------------
1,900,000
--------------
ALASKA - 2.57%
3,000,000 Valdez, Marine Terminal Revenue
3.45%, 05/01/97
Guaranteed: ARCO ................................................................. 3,000,000
--------------
CALIFORNIA - 2.31%
2,700,000 Los Angeles Regional Airports Improvement Corp.
Lease Revenue, Sublease, LA International Airport
3.95%, 12/01/25 (A)
LOC: Societe Generale ............................................................ 2,700,000
--------------
CONNECTICUT - 66.72%
3,000,000 Avon, BAN
3.75%, 09/15/97 .................................................................. 3,004,292
500,000 Connecticut State
Series D, GO
3.75%, 12/01/97 .................................................................. 500,705
2,600,000 Connecticut State Development Authority
PCR, Central Vermont Public Service
3.40%, 12/01/15 (A)
LOC: Toronto Dominion Bank ....................................................... 2,600,000
1,300,000 Connecticut State Development Authority
Conco Project
4.50%, 11/01/05 (A)
LOC: Bayerische Vereinsbank ...................................................... 1,300,000
17,800,000 Connecticut State Development Authority
PCR, Connecticut Light & Power Co. Project
Series A
4.50%, 09/01/28 (A)
LOC: Deutsche Bank ............................................................... 17,800,000
5,200,000 Connecticut State Development Authority
Health Care Corp. for Independent Living
4.30%, 07/01/15 (A)
LOC: Chemical Bank ............................................................... 5,200,000
2,000,000 Connecticut State Development Authority
PCR, Western Massachusetts Electric Co.
Series A
4.30%, 09/01/28 (A)
LOC: Union Bank of Switzerland ................................................... 2,000,000
4,000,000 Connecticut State HEFA
3.40%, 05/13/97
Guaranteed: Yale University ...................................................... 4,000,000
760,000 Connecticut State HEFA
Stamford Hospital, Series C
5.70%, 07/01/97
Insured: MBIA .................................................................... 762,440
1,205,000 Connecticut State HEFA
Yale-New Haven Hospital, Series E
3.62%, 06/01/12 (A)
Insured: FGIC .................................................................... 1,205,000
3,500,000 Connecticut State, IDA
Allen Group, Inc.
3.60%, 02/01/13 (A)
LOC: Bayerische Vereinsbank ...................................................... 3,500,000
1,100,000 Connecticut State, IDA
Trudy Corp., Project 1984
3.40%, 09/01/09 (A)
LOC: Citibank .................................................................... 1,100,000
600,000 Connecticut State, IDA
Martin-Brower Co. Project
4.35%, 05/01/05 (A)
LOC: Chemical Bank ............................................................... 600,000
2,150,000 Connecticut State Housing Finance Authority
Housing Mortgage Finance Program, Series F2
4.10%, 05/15/97 .................................................................. 2,150,469
2,100,000 Connecticut State Housing Finance Authority
Housing Mortgage Finance Program, Series G
4.55%, 05/15/18 (A)
Insured: AMBAC ................................................................... 2,100,000
500,000 Connecticut State Special Assessment
Unemployment Compensation Advisory Fund
Series A
4.10%, 05/15/97 .................................................................. 500,022
6,000,000 Connecticut State Special Assessment
Unemployment Compensation Advisory Fund
Series C
3.90%, 11/15/01 (A)
SPA: FGIC ........................................................................ 6,000,000
4,900,000 Connecticut State, Special Tax Obligation
Revenue, Second Lien, Transportation
Infrastructure, Series 1
4.45%, 12/01/10 (A)
LOC: Commerzbank A.G. ............................................................ 4,900,000
1,000,000 Connecticut State, Special Tax Obligation
Revenue, Transportation Infrastructure
Series A
4.13%, 06/01/97
Insured: FGIC .................................................................... 1,000,331
780,000 East Hartford, Lot A, GO
6.13%, 01/15/98
LOC: FSA ......................................................................... 794,147
789,000 East Lyme, BAN
3.79%, 07/29/97 .................................................................. 789,073
1,450,000 Fairfield, SAN
3.75%, 06/06/97 .................................................................. 1,450,414
1,260,000 Groton City, BAN, GO.
4.00%, 07/10/97 .................................................................. 1,261,025
1,000,000 Hartford Redevelopment Agency
Multi-Family Mortgage Revenue
Underwood Tower Project
4.25%, 06/01/20 (A)
Insured: FSA ..................................................................... 1,000,000
2,050,000 Manchester, Temporary Notes, Lot B
3.60%, 05/28/97 .................................................................. 2,050,220
1,500,000 Montville, BAN
3.34%, 07/15/97 .................................................................. 1,500,181
2,030,000 New Haven, GO
5.00%, 08/15/97
Insured: AMBAC ................................................................... 2,039,509
4,000,000 Orange, BAN
3.50%, 03/03/98 .................................................................. 4,001,614
1,140,000 Prospect, BAN
3.75%, 07/24/97 .................................................................. 1,140,100
756,700 Thompson, BAN
4.50%, 07/18/97 .................................................................. 757,712
822,000 Westport, BAN, Lot B
3.90%, 06/27/97 .................................................................. 822,309
--------------
77,829,563
--------------
DELAWARE - 0.17%
100,000 Wilmington Hospital Revenue
Franciscan Health System, Series A
3.95%, 07/01/11 (A)
LOC: Societe Generale ............................................................ 100,000
100,000 Wilmington Hospital Revenue
Franciscan Health System, Series B
3.95%, 07/01/11 (A)
LOC: Societe Generale ............................................................ 100,000
--------------
200,000
--------------
ILLINOIS - 0.09%
100,000 Chicago O'Hare International Airport
General Airport, Second Lien, Series A
4.50%, 01/01/15 (A)
LOC: Societe Generale ............................................................ 100,000
--------------
INDIANA - 0.94%
1,100,000 Princeton, PCR
PSI Energy, Inc. Project
4.00%, 03/01/19 (A) .............................................................. 1,100,000
--------------
LOUISIANA - 0.77%
900,000 Louisiana State Offshore Terminal Authority
Deepwater Port Revenue, First Stage A
Loop, Inc.
3.90%, 09/01/08 (A)
LOC: Union Bank of Switzerland ................................................... 900,000
--------------
MASSACHUSETTS - 0.17%
200,000 Massachusetts State, GO, Series E
3.85%, 12/01/97 (A)
LOC: ABN-AMRO Bank ............................................................... 200,000
--------------
OHIO - 1.20%
1,400,000 Ohio State Air Quality Development
Authority, Cincinnati Gas & Electric, Series A
3.90%, 09/01/30 (A)
LOC: ABN-AMRO Bank ............................................................... 1,400,000
--------------
PUERTO RICO - 13.31%
4,900,000 Puerto Rico Commonwealth
TRAN, Series A
4.00%, 07/30/97 .................................................................. 4,909,053
5,700,000 Puerto Rico Commonwealth
Government Development Bank
4.20%, 12/01/15 (A)
LOC: Credit Suisse ............................................................... 5,700,000
3,900,000 Puerto Rico Commonwealth
Highway & Transportation Authority, Series X
4.20%, 07/01/99 (A)
LOC: Union Bank of Switzerland ................................................... 3,900,000
1,000,000 Puerto Rico Public Buildings Authority
Public Education & Health Facilities
Prerefunded 07/01/97, Series H
7.88%, 07/01/07 .................................................................. 1,026,781
--------------
15,535,834
--------------
SOUTH CAROLINA - 0.43%
500,000 South Carolina Jobs Economic Development
Authority, St. Francis Hospital
3.95%, 07/01/22 (A)
LOC: Chemical Bank ............................................................... 500,000
--------------
SOUTH DAKOTA - 1.12%
1,300,000 Lawrence County, PCR
Homestake Mining Project
4.40%, 04/01/03 (A)
LOC: Bank of Nova Scotia ......................................................... 1,300,000
--------------
TENNESSEE - 0.17%
200,000 Metropolitan Nashville Airport Authority
Special Facilities Revenue
American Airlines, Series A
3.95%, 10/01/12 (A)
LOC: Credit Suisse ............................................................... 200,000
--------------
TEXAS - 3.94%
100,000 Grapevine, IDC
Multiple Mode, American Airlines, Series B2
3.95%, 12/01/24 (A)
LOC: Morgan Guaranty ............................................................. 100,000
400,000 Grapevine, IDC
Multiple Mode, American Airlines, Series B4
3.95%, 12/01/24 (A)
LOC: Morgan Guaranty ............................................................. 400,000
100,000 Lone Star Airport Improvement Authority
Multiple Mode, Series B-1
3.95%, 12/01/14 (A)
LOC: Royal Bank of Canada ........................................................ 100,000
200,000 Lone Star Airport Improvement Authority
Multiple Mode, Series B-4
3.95%, 12/01/14 (A)
LOC: Royal Bank of Canada ........................................................ 200,000
3,000,000 Sabine River Authority, PCR
Texas Utilities Project, Series A
4.00%, 03/01/26 (A)
Insured: AMBAC ................................................................... 3,000,000
800,000 Texas A & M University System
Permanent Board of Regents, Series B
3.75%, 05/20/97
LOC: Morgan Guaranty ............................................................. 800,000
--------------
4,600,000
--------------
TOTAL MUNICIPAL SECURITIES ....................................................... 111,465,397
(Cost $111,465,397) --------------
SHARES
------
INVESTMENT COMPANIES - 3.82%
2,412,531 Dreyfus Connecticut
Tax Exempt Money Market .......................................................... 2,412,534
2,038,343 Federated Municipal Trust
Connecticut Municipal Cash Trust ................................................. 2,038,343
--------------
TOTAL INVESTMENT COMPANIES ....................................................... 4,450,877
(Cost $4,450,877) --------------
TOTAL INVESTMENTS - 99.36% ...................................................................... 115,916,274
(Cost $115,916,274)* --------------
NET OTHER ASSETS AND LIABILITIES - 0.64% ........................................................ 745,298
--------------
NET ASSETS - 100.00% ............................................................................ $ 116,661,572
===============
- -----------------
* Aggregage cost for Federal tax purposes.
(A) Variable rate demand notes are payable upon not more than
one, seven or thirty business days notice. Put bonds and notes have demand features which mature within
one year. The interest rate shown reflects the rate in effect at April 30, 1997.
AMBAC American Municipal Bond Assurance Co.
ARCO Atlantic Richfield Co.
BAN Bond Anticipation Notes
FGIC Federal Guaranty Insurance Corp.
FSA Financial Security Assurance, Inc.
GO General Obligation
HEFA Health and Educational Facilities Authority
IDA Industrial Development Authority
IDC Industrial Development Corp.
LOC Letter of Credit
MBIA Municipal Bond Insurance Association
PCR Pollution Control Revenue
SAN Sewer Assessment Note
SPA Stand-by Purchase Agreement
TRAN Tax & Revenue Anticipation Notes
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
---------------
Massachusetts Municipal Money Market Fund
PORTFOLIO OF INVESTMENTS (continued)
THE GALAXY FUND April 30, 1997 (unaudited)
---------------
<CAPTION>
VALUE
PAR VALUE (NOTE 2)
--------- --------
MUNICIPAL SECURITIES - 95.66%
ALABAMA - 0.69%
<S> <C> <C>
$ 400,000 McIntosh Industrial Development Board, PCR
Ciba-Geigy Corp. Project
4.00%, 07/01/04 (A)
LOC: Credit Suisse ............................................................... $ 400,000
--------------
CALIFORNIA - 4.85%
1,900,000 Los Angeles Regional Airports Improvement Corp.
Lease Revenue, Sublease, LA International Airport
3.95%, 12/01/25 (A)
LOC: Societe Generale ............................................................ 1,900,000
300,000 Los Angeles Regional Airports Improvement Corp.
Lease Revenue, American Airlines
LA International Airport, Series A
3.95%, 12/01/24 (A)
LOC: Wachovia Bank ............................................................... 300,000
600,000 Los Angeles Regional Airports Improvement Corp.
Lease Revenue, American Airlines
LA International Airport, Series G
3.95%, 12/01/24 (A)
LOC: Wachovia Bank ............................................................... 600,000
--------------
2,800,000
--------------
DELAWARE - 1.73%
200,000 Wilmington Hospital Revenue
Franciscan Health System, Series A
3.95%, 07/01/11 (A)
LOC: Societe Generale ............................................................ 200,000
800,000 Wilmington Hospital Revenue
Franciscan Health System, Series B
3.95%, 07/01/11 (A)
LOC: Societe Generale ............................................................ 800,000
--------------
1,000,000
--------------
ILLINOIS - 0.52%
300,000 Chicago O'Hare International Airport
American Airlines, Series A
3.85%, 12/01/17(A)
LOC: West Deutsche Landesbank .................................................... 300,000
--------------
MASSACHUSETTS - 73.12%
2,000,000 Barnstable, BAN
4.00%, 10/23/97 .................................................................. 2,002,770
1,000,000 Boston Water & Sewer Commission
General, Senior Series A
4.25%, 11/01/24 (A)
LOC: State Street Bank & Trust.................................................... 1,000,000
2,600,000 Braintree, BAN, GO
3.60%, 05/20/97 .................................................................. 2,600,187
1,500,000 Framingham, BAN
3.75%, 07/08/97 .................................................................. 1,500,795
700,000 Ipswich, BAN
4.00%, 02/05/98 .................................................................. 701,809
2,900,000 Massachusetts Bay Transportation Authority
Series 1984-A
3.52%, 03/01/14 (A)
LOC: State Street Bank & Trust ................................................... 2,900,000
1,500,000 Massachusetts Municipal Wholesale Electric Co.
Power Supply System, Series C
4.30%, 07/01/19 (A)
LOC: Canadian Imperial Bank of Commerce .......................................... 1,500,000
3,550,000 Massachusetts State, GO, Series B
3.85%, 12/01/97 (A)
LOC: National Westminster ........................................................ 3,550,000
100,000 Massachusetts State, GO, Series E
3.85%, 12/01/97 (A)
LOC: ABN-AMRO Bank ............................................................... 100,000
2,000,000 Massachusetts State HEFA
Capital Assets Program, Series D
4.25%, 07/01/21 (A)
Insured: MBIA; SPA: Credit Suisse ................................................ 2,000,000
2,700,000 Massachusetts State HEFA
Capital Assets Program, Series D
3.95%, 01/01/35 (A)
Insured: MBIA; SPA: Credit Suisse ................................................ 2,700,000
2,000,000 Massachusetts State HEFA
Capital Asset Program, Series G-1
4.20%, 01/01/19 (A)
Insured: MBIA .................................................................... 2,000,000
2,050,000 Massachusetts State HEFA
Community Health Center Capital Fund
Series A
4.45%, 03/01/15 (A)
LOC: First National Bank ......................................................... 2,050,000
2,000,000 Massachusetts State HEFA
Newton Wellesley Hospital, Series F
4.20%, 07/01/25 (A)
Insured: MBIA .................................................................... 2,000,000
1,000,000 Massachusetts State Housing Finance Agency
Multi-Family, Series A
4.40%, 12/01/25 (A) .............................................................. 1,000,000
1,900,000 Massachusetts State Industrial Finance Agency
Resource Recovery Revenue
Ogden Haverhill Project, Series A
4.20%, 12/01/06 (A)
LOC: Union Bank of Switzerland ................................................... 1,900,000
1,000,000 Massachusetts State Industrial Finance Agency
Governor Dummer Academy
4.40%, 07/01/26 (A) .............................................................. 1,000,000
700,000 Massachusetts State Water Resource Authority
Series 1994
3.20%, 05/05/97
LOC: Morgan Guaranty ............................................................. 700,000
1,000,000 Massachusetts State Water Resource Authority
Series 1994
3.40%, 05/12/97
LOC: Morgan Guaranty ............................................................. 1,000,000
500,000 Massachusetts State Water Resource Authority
Series 1994
3.60%, 06/06/97
LOC: Morgan Guaranty ............................................................. 500,000
2,500,000 Natick, BAN
3.75%, 02/27/98 .................................................................. 2,504,376
688,000 North Andover, BAN
3.94%, 05/23/97 .................................................................. 688,182
1,179,000 North Attleborough, GO
4.25%, 03/01/98
Insured: AMBAC ................................................................... 1,185,684
638,000 Norwell, GO
4.50%, 10/01/97
Insured: FSA ..................................................................... 639,816
2,000,000 Peabody, BAN
4.00%, 08/15/97................................................................... 2,000,940
2,500,000 Weston, BAN, GO
3.60%, 03/04/98 .................................................................. 2,502,418
--------------
42,226,977
--------------
MICHIGAN - 0.69%
400,000 Kent Hospital Finance Authority
Butterworth Hospital, Series A
4.40%, 01/15/20 (A)
LOC: Rabobank .................................................................... 400,000
--------------
MISSOURI - 0.69%
400,000 Missouri State HEFA Educational Facility
St. Louis University
3.95%, 12/01/05 (A) .............................................................. 400,000
--------------
NEW JERSEY - 0.17%
100,000 New Jersey Economic Development Authority
Water Facilities Revenue
United Water New Jersey, Inc. Project, Series B
3.50%, 11/01/25 (A)
Insured: AMBAC ................................................................... 100,000
--------------
PENNSYLVANIA - 1.91%
1,000,000 Philadelphia Electric, Series B
3.45%, 05/01/97 .................................................................. 1,000,000
100,000 St. Mary Hospital Authority
Franciscan Health System, Series A
3.85%, 12/01/24 (A)
LOC: Toronto Dominion Bank ....................................................... 100,000
--------------
1,100,000
--------------
PUERTO RICO - 7.95%
2,000,000 Puerto Rico Commonwealth
TRAN, Series A
4.00%, 07/30/97 .................................................................. 2,003,877
1,050,000 Puerto Rico Commonwealth
Government Development Bank
4.20%, 12/01/15 (A)
LOC: Credit Suisse ............................................................... 1,050,000
1,535,000 Puerto Rico Commonwealth
Highway & Transportation Authority, Series X
4.20%, 07/01/99 (A)
LOC: Union Bank of Switzerland ................................................... 1,535,000
--------------
4,588,877
--------------
TEXAS - 2.13%
300,000 Grapevine, IDC
Multiple Mode, American Airlines, Series B1
3.95%, 12/01/24 (A)
LOC: Morgan Guaranty ............................................................. 300,000
600,000 North Central Health Facilities Development
Corp., Hospital Revenue, Series C
Presbyterian Medical Center
3.95%, 12/01/15 (A)
Insured: MBIA .................................................................... 600,000
330,000 Texas Higher Education Authority, Inc.
Educational Equipment & Improvement
Series B
4.00%, 12/01/25 (A)
Insured: FGIC .................................................................... 330,000
--------------
1,230,000
--------------
UTAH - 1.04%
600,000 Carbon County, PCR
Pacificorp Projects
4.00%, 11/01/24 (A)
Insured: AMBAC ................................................................... 600,000
--------------
WASHINGTON - 0.17%
100,000 Washington State Public Power Supply
System, Nuclear Project No.1 Revenue
Series 1A-1
4.45%, 07/01/17 (A)
LOC: Bank of America ............................................................. 100,000
--------------
TOTAL MUNICIPAL SECURITIES ....................................................... 55,245,854
(Cost $55,245,854) --------------
SHARES
------
INVESTMENT COMPANIES - 4.26%
1,790,569 Dreyfus Massachusetts
Tax Exempt Money Market .......................................................... 1,790,569
665,899 Federated Municipal Trust
Massachusetts Municipal Cash Trust ............................................... 665,899
--------------
TOTAL INVESTMENT COMPANIES ....................................................... 2,456,468
(Cost $2,456,468) --------------
TOTAL INVESTMENTS - 99.92% ...................................................................... 57,702,322
(Cost $57,702,322)* --------------
NET OTHER ASSETS AND LIABILITIES - 0.08% ........................................................ 47,923
--------------
NET ASSETS - 100.00% ............................................................................ $ 57,750,245
==============
- ----------------------
* Aggregage cost for Federal tax purposes.
(A) Variable rate demand notes are payable upon not more than one, seven or thirty business days notice.
Put bonds and notes have demand features which mature within one year. The interest rate shown
reflects the rate in effect at April 30, 1997.
AMBAC American Municipal Bond Assurance Co.
BAN Bond Anticipation Notes
FGIC Federal Guaranty Insurance Corp.
FSA Financial Security Assurance, Inc.
GO General Obligation
HEFA Health and Educational Facilities Authority
LOC Letter of Credit
MBIA Municipal Bond Insurance Association
PCR Pollution Control Revenue
SPA Stand-by Purchase Agreement
TRAN Tax & Revenue Anticipation Notes
See Notes to Financial Statements.
</TABLE>
<PAGE>
---------------
STATEMENT OF ASSETS AND LIABILITIES
THE GALAXY FUND APRIL 30, 1997 (UNAUDITED)
---------------
<TABLE>
<CAPTION>
MONEY MARKET GOVERNMENT TAX-EXEMPT U.S. TREASURY
FUND FUND FUND FUND
------------ ---------- ---------- -------------
ASSETS:
<S> <C> <C> <C> <C>
Investments (Note 2):
Investments at cost ......................... $2,500,624,576 $ 999,920,968 $ 312,721,131 $ 830,787,095
Repurchase agreements........................ 52,004,582 197,968,839 -- --
-------------- --------------- ------------- -------------
Total investments at value.................. 2,552,629,158 1,197,889,807 312,721,131 830,787,095
Cash......................................... 49 -- -- 957
Receivable for shares sold................... 1,789,343 61,059 195,256 129,279
Interest receivable.......................... 1,626,436 1,624,890 1,768,732 5,251,776
Receivable from investment adviser (Note 4).. -- -- 7,045 27,198
-------------- --------------- ------------- -------------
Total Assets................................ 2,556,044,986 1,199,575,756 314,692,164 836,196,305
-------------- --------------- ------------- -------------
LIABILITIES:
Dividends payable............................. 4,100,798 3,371,539 502,819 1,379,109
Payable for shares repurchased................ 1,835,915 320,132 -- 115,800
Investment advisory fee payable (Note 3)...... 779,000 378,456 109,232 283,890
Payable to Fleet and affiliates (Note 3)...... 155,422 29,819 12,915 43,731
Payable to FDISG (Note 3)..................... 339,658 111,174 31,867 72,989
Trustees' fees and expenses payable (Note 3).. 17,447 9,700 3,567 8,733
Payable to custodian.......................... -- 8 3,556 --
Accrued expenses and other payables........... 256,817 55,630 23,190 18,053
-------------- --------------- ------------- -------------
Total Liabilities............................ 7,485,057 4,276,458 687,146 1,922,305
-------------- --------------- ------------- -------------
NET ASSETS...................................... $2,548,559,929 $ 1,195,299,298 $ 314,005,018 $ 834,274,000
============== =============== ============= =============
NET ASSETS CONSIST OF:
Par value (Note 6)........................... $ 2,549,688 $ 1,196,217 $ 314,157 $ 834,750
Paid-in capital in excess of par value....... 2,547,130,657 1,195,020,963 313,842,374 833,914,909
Undistributed (overdistributed) net
investment income (loss) ................... 233,572 (45,378) (19,942) 316,530
Accumulated net realized (loss) on
investments sold............................ (1,353,988) (872,504) (131,571) (792,189)
TOTAL NET ASSETS................................ $2,548,559,929 $ 1,195,299,298 $ 314,005,018 $ 834,274,000
============== =============== ============= =============
Retail A Shares:
Net assets..................................... $1,583,092,247 $ 353,674,265 $ 129,913,443 $ 503,705,354
Shares of beneficial interest outstanding...... 1,583,745,432 353,856,794 129,970,426 503,933,417
NET ASSET VALUE, offering and redemption
price per share............................... $ 1.00 $ 1.00 $ 1.00 $ 1.00
============== =============== ============= =============
Retail B Shares:
Net assets..................................... $ 469,331 $ N/A $ N/A $ N/A
Shares of beneficial interest outstanding...... 469,331 N/A N/A N/A
NET ASSET VALUE and offering price per share*.. $ 1.00 $ N/A $ N/A $ N/A
============== =============== ============= =============
Trust Shares:
Net assets.......................................... $ 964,998,351 $ 841,625,033 $ 184,091,575 $ 330,568,646
Shares of beneficial interest outstanding........... 965,473,485 842,360,386 184,186,104 330,816,239
NET ASSET VALUE, offering and redemption
price per share ................................... $ 1.00 $ 1.00 $ 1.00 $ 1.00
============== =============== ============= =============
- ----------
*Redemption price per share is equal to the Net Asset Value per share less any applicable contingent deferred sales charge.
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
---------------
STATEMENT OF ASSETS AND LIABILITIES (Continued)
THE GALAXY FUND APRIL 30, 1997 (UNAUDITED)
---------------
CONNECTICUT MUNICIPAL MASSACHUSETTS MUNICIPAL
MONEY MARKET FUND MONEY MARKET FUND
--------------------- -----------------------
ASSETS:
<S> <C> <C>
Investments (Note 2):
Investments at cost .......................... $ 115,916,274 $ 57,702,322
Repurchase agreements......................... -- --
-------------- --------------
Total investments at value................... 115,916,274 57,702,322
Cash.......................................... -- --
Receivable for shares sold.................... -- 1,200
Interest receivable........................... 920,073 350,985
Receivable from investment adviser (Note 4)... 844 718
-------------- --------------
Total Assets................................. 116,837,191 58,055,225
-------------- --------------
LIABILITIES:
Dividends payable.............................
Payable for shares repurchased................ 89,020 50,580
Investment advisory fee payable (Note 3)...... 2,512 206,864
Payable to Fleet and affiliates (Note 3)...... 38,585 19,795
Payable to FDISG (Note 3)..................... 10,189 5,161
Trustees' fees and expenses payable (Note 3).. 11,782 6,824
Payable to custodian.......................... 1,684 1,896
Accrued expenses and other payables........... -- --
21,847 13,860
-------------- --------------
Total Liabilities............................ 175,619 304,980
-------------- --------------
NET ASSETS....................................... $ 116,661,572 $ 57,750,245
============== ==============
NET ASSETS CONSIST OF:
Par value (Note 6)............................ $ 116,667 $ 57,759
Paid-in capital in excess of par value........ 116,557,431 57,701,063
Undistributed (overdistributed) net
investment income (loss) .................... (5,090) 4,003
Accumulated net realized (loss) on
investments sold............................. (7,436) (12,580)
-------------- --------------
TOTAL NET ASSETS................................ $ 116,661,572 $ 57,750,245
============== ==============
Retail A Shares:
Net assets..................................... $ 116,661,572 $ 57,750,245
Shares of beneficial interest outstanding...... 116,667,479 57,758,658
NET ASSET VALUE, offering and redemption
price per share............................... $ 1.00 $ 1.00
============== ==============
Retail B Shares:
Net assets..................................... $ N/A $ N/A
Shares of beneficial interest outstanding...... N/A N/A
NET ASSET VALUE and offering price per share*.. $ N/A $ N/A
============== ==============
Trust Shares:
Net assets..................................... $ N/A $ N/A
Shares of beneficial interest outstanding...... N/A N/A
NET ASSET VALUE, offering and redemption
price per share .............................. $ N/A $ N/A
============== ==============
- ----------
*Redemption price per share is equal to the Net Asset Value per share less any applicable contingent deferred sales charge.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
---------------
STATEMENT OF OPERATIONS
THE GALAXY FUND For the six months ended April 30, 1997 (unaudited)
---------------
MONEY MARKET GOVERNMENT TAX-EXEMPT U.S. TREASURY
FUND FUND FUND FUND
------------ ---------- ---------- -------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest (Note 2)................................. $ 64,729,740 $ 29,861,561 $ 5,578,239 $ 22,189,912
-------------- ------------ ------------ ------------
EXPENSES:
Investment advisor fee (Note 3)................... 4,766,476 2,225,461 640,762 1,676,478
Administration fee (Note 3)....................... 976,531 455,958 131,291 349,027
Custodian fee (Note 3)............................ 29,623 16,976 14,229 10,520
Fund accounting fee (Note 3)...................... 70,074 59,403 24,375 48,030
Legal fee (Note 3)................................ 53,937 17,641 9,751 18,713
Audit fee......................................... 8,996 8,032 7,143 21,793
Shareholder servicing fee (Note 3)................ 608,320 170,523 62,941 230,519
Transfer agent fee (Note 3)....................... 1,021,186 197,260 43,327 219,750
12b-1 fee......................................... 145 -- -- --
Trustees' fees and expenses (Note 3).............. 23,273 9,810 4,064 8,544
Amortization of organization costs (Note 2)....... -- -- -- 270
Reports to shareholders (Note 3).................. 171,711 30,660 6,739 28,812
Registration fee.................................. 58,828 11,645 5,415 61,916
Insurance ........................................ 11,485 5,139 2,765 4,140
Miscellaneous..................................... 21,247 12,883 4,090 7,527
-------------- ------------ ------------ ------------
Total expenses before
reimbursement/waiver (Note 4)................... 7,821,832 3,221,391 956,892 2,686,039
-------------- ------------ ------------ ------------
Less: reimbursement/waiver (Note 4).............. (409,851) (92,224) (13,478) (27,547)
-------------- ------------ ------------ ------------
Total expenses net of reimbursement/waiver .... 7,411,981 3,129,167 943,414 2,658,492
-------------- ------------ ------------ ------------
NET INVESTMENT INCOME.............................. 57,317,759 26,732,394 4,634,825 19,531,420
-------------- ------------ ------------ ------------
NET REALIZED GAIN (LOSS)
ON INVESTMENTS SOLD (NOTE 2)..................... (700) -- -- 2,311
-------------- ------------ ------------ ------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS.................................. $ 57,317,059 $ 26,732,394 $ 4,634,825 $ 19,533,731
============== ============ ============ ============
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
---------------
STATEMENT OF OPERATIONS (Continued)
THE GALAXY FUND For the six months ended April 30, 1997 (unaudited)
---------------
CONNECTICUT MUNICIPAL MASSACHUSETTS MUNICIPAL
MONEY MARKET FUND MONEY MARKET FUND
--------------------- -----------------------
INVESTMENT INCOME:
<S> <C> <C> <C>
Interest (Note 2)................................. $1,974,990 $916,887
---------- --------
EXPENSES:
Investment advisor fee (Note 3)................... 233,472 108,112
Administration fee (Note 3)....................... 47,836 22,146
Custodian fee (Note 3)............................ 6,353 5,571
Fund accounting fee (Note 3)...................... 11,257 11,593
Legal fee (Note 3)................................ 1,245 1,059
Audit fee......................................... 6,509 4,509
Shareholder servicing fee (Note 3)................ 45,301 23,170
Transfer agent fee (Note 3)....................... 1,421 2,631
12b-1 fee......................................... -- --
Trustees' fees and expenses (Note 3).............. 1,470 500
Amortization of organization costs (Note 2)....... -- --
Reports to shareholders (Note 3).................. 1,238 310
Registration fee.................................. 1,446 562
Insurance ........................................ 270 397
Miscellaneous..................................... 63 91
---------- --------
Total expenses before
reimbursement/waiver (Note 4)................... 357,881 180,651
---------- --------
Less: reimbursement/waiver (Note 4).............. (25,985) (21,612)
---------- --------
Total expenses net of reimbursement/waiver .... 331,896 159,039
---------- --------
NET INVESTMENT INCOME.............................. 1,643,094 757,848
---------- --------
NET REALIZED GAIN (LOSS)
ON INVESTMENTS SOLD (NOTE 2)..................... -- --
---------- --------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS.................................. $1,643,094 $757,848
========== ========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
---------------
STATEMENT OF CHANGES IN NET ASSETS
THE GALAXY FUND
---------------
MONEY MARKET FUND GOVERNMENT FUND
------------------------------- ---------------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED
APRIL 30, 1997 OCTOBER 31, APRIL 30, 1997 OCTOBER 31,
(UNAUDITED) 1996 (UNAUDITED) 1996
------------------------------- ---------------------------------
<S> <C> <C> <C> <C>
NET ASSETS AT BEGINNING OF PERIOD................... $2,083,533,947 $ 914,816,047 $1,060,170,053 $ 999,474,334
-------------- -------------- -------------- --------------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS:
Net investment income........................... 57,317,759 87,543,598 26,732,394 46,499,874
Net realized gain (loss) on investments sold.... (700) (43,235) -- 47,761
-------------- -------------- -------------- --------------
Net increase in net assets
resulting from operations..................... 57,317,059 87,500,363 26,732,394 46,547,635
-------------- -------------- -------------- --------------
DIVIDENDS TO SHAREHOLDERS FROM:
RETAIL A SHARES:
Net investment income......................... (32,725,390) (44,808,226) (8,023,668) (14,950,690)
Dividends in excess of net investment income.. -- -- -- (14,560)
-------------- -------------- -------------- --------------
Total Dividends ........................... (32,725,390) (44,808,226) (8,023,668) (14,965,250)
-------------- -------------- -------------- --------------
RETAIL B SHARES:
Net investment income......................... (1,028) N/A N/A N/A
Dividends in excess of net investment income.. -- N/A N/A N/A
-------------- -------------- -------------- --------------
Total Dividends ........................... (1,028) N/A N/A N/A
-------------- -------------- -------------- --------------
TRUST SHARES:
Net investment income......................... (24,591,341) (42,735,672) (18,708,726) (31,503,806)
Dividends in excess of net investment income.. -- -- -- (30,818)
-------------- -------------- -------------- --------------
Total Dividends ........................... (24,591,341) (42,735,672) (18,708,726) (31,534,624)
-------------- --------------- -------------- --------------
Total Dividends to shareholders ......... (57,317,759) (87,543,898) (26,732,394) (46,499,874)
-------------- --------------- -------------- --------------
NET INCREASE (DECREASE) FROM
SHARE TRANSACTIONS(1) ........................ 465,026,682 1,168,761,435 135,129,245 60,647,958
-------------- --------------- -------------- --------------
Net increase (decrease) in net assets........... 465,025,982 1,168,717,900 135,129,245 60,695,719
-------------- --------------- -------------- --------------
NET ASSETS AT END OF PERIOD (INCLUDING LINE A)...... $2,548,559,929 $ 2,083,533,947 $1,195,299,298 $1,060,170,053
============== =============== ============== ==============
(A) Undistributed (overdistributed)
net investment income (loss)................. $ 233,572 $ 233,572 $ (45,378) $ (45,378)
============== =============== ============== ==============
- ----------
(1) For detail on share transactions by series, see Statements of Changes in Net Assets -
Capital Stock Activity on pages 32 and 33.
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
---------------
STATEMENT OF CHANGES IN NET ASSETS (Continued)
THE GALAXY FUND
---------------
TAX-EXEMPT FUND U.S. TREASURY FUND
------------------------------- ---------------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED
APRIL 30, 1997 OCTOBER 31, APRIL 30, 1997 OCTOBER 31,
(UNAUDITED) 1996 (UNAUDITED) 1996
------------------------------- ---------------------------------
<S> <C> <C> <C> <C>
NET ASSETS AT BEGINNING OF PERIOD................... $ 301,854,872 $ 307,761,973 $ 797,561,471 $ 589,657,171
-------------- -------------- -------------- --------------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS:
Net investment income........................... 4,634,825 9,214,855 19,531,420 31,369,614
Net realized gain (loss) on investments sold.... -- (7,422) 2,311 113,403
-------------- -------------- -------------- --------------
Net increase in net assets
resulting from operations..................... 4,634,825 9,207,433 19,533,731 31,483,017
-------------- -------------- -------------- --------------
DIVIDENDS TO SHAREHOLDERS FROM:
RETAIL A SHARES:
Net investment income......................... (1,773,598) (3,693,979) (10,999,009) (16,420,997)
Dividends in excess of net investment income.. -- (7,790) -- --
-------------- -------------- -------------- --------------
Total Dividends ........................... (1,773,598) (3,701,769) (10,999,009) (16,420,997)
-------------- -------------- -------------- --------------
RETAIL B SHARES:
Net investment income......................... N/A N/A N/A N/A
Dividends in excess of net investment income.. N/A N/A N/A N/A
-------------- -------------- -------------- --------------
Total Dividends ........................... N/A N/A N/A N/A
-------------- -------------- -------------- --------------
TRUST SHARES:
Net investment income......................... (2,861,195) (5,500,678) (8,532,411) (14,948,617)
Dividends in excess of net investment income.. -- (12,184) -- --
-------------- --------------- -------------- --------------
Total Dividends ........................... (2,861,195) (5,512,862) (8,532,411) (14,948,617)
-------------- --------------- -------------- --------------
Total Dividends to shareholders ......... (4,634,793) (9,214,631) (19,531,420) (31,369,614)
-------------- --------------- -------------- --------------
NET INCREASE (DECREASE) FROM
SHARE TRANSACTIONS(1) ........................ 12,150,114 (5,899,903) 36,710,218 207,790,897
-------------- --------------- -------------- --------------
Net increase (decrease) in net assets........... 12,150,146 (5,907,101) 36,712,529 207,904,300
-------------- --------------- -------------- --------------
NET ASSETS AT END OF PERIOD (INCLUDING LINE A)...... $ 314,005,018 $ 301,854,872 $ 834,274,000 $ 797,561,471
============== =============== ============== ==============
(A) Undistributed (overdistributed)
net investment income (loss)................. $ (19,942) $ (19,974) $ 316,530 $ 316,530
============== =============== ============== ==============
- ----------
(1) For detail on share transactions by series, see Statements of Changes in Net Assets -
Capital Stock Activity on pages 32 and 33.
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
---------------
STATEMENT OF CHANGES IN NET ASSETS
THE GALAXY FUND
---------------
CONNECTICUT MUNICIPAL MASSACHUSETTS MUNICIPAL
MONEY MARKET FUND MONEY MARKET FUND
------------------------------- -------------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED
APRIL 30, 1997 OCTOBER 31, APRIL 30, 1997 OCTOBER 31,
(UNAUDITED) 1996 (UNAUDITED) 1996
------------------------------- -------------------------------
<S> <C> <C> <C> <C>
NET ASSETS AT BEGINNING OF PERIOD........... $ 110,544,441 $ 102,636,161 $ 47,066,054 $ 40,326,146
-------------- -------------- -------------- --------------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS:
Net investment income.................... 1,643,094 2,937,544 757,848 1,170,106
Net realized loss on investments sold.... -- (817) -- (12,416)
-------------- -------------- -------------- --------------
Net increase in net
assets resulting from operations..... 1,643,094 2,936,727 757,848 1,157,690
-------------- -------------- -------------- --------------
DIVIDENDS TO SHAREHOLDERS FROM:
RETAIL SHARES:
Net investment income.................. (1,639,934) (2,937,544) (753,845) (1,170,106)
Dividends in excess of net investment income -- (8,250) -- --
-------------- -------------- -------------- --------------
Total Dividends to shareholders... (1,639,934) (2,945,794) (753,845) (1,170,106)
-------------- -------------- -------------- --------------
NET INCREASE FROM
SHARE TRANSACTIONS(1).................... 6,113,971 7,917,347 10,680,188 6,752,324
-------------- -------------- -------------- --------------
Net increase in net assets............. 6,117,131 7,908,280 10,684,191 6,739,908
-------------- -------------- -------------- --------------
NET ASSETS AT END OF PERIOD (INCLUDING LINE A) $ 116,661,572 $ 110,544,441 $ 57,750,245 $ 47,066,054
============== ============== ============== ==============
(A) Undistributed (overdistributed)
net investment income (loss)....... $ (5,090) $ (8,250) $ 4,003 $ --
============== ============== ============== ==============
- ----------
(1) For detail on share transactions by series, see Statements of Changes in Net Assets - Capital Stock Activity on page 33.
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
---------------
STATEMENT OF CHANGES IN NET ASSETS -
THE GALAXY FUND CAPITAL STOCK ACTIVITY
---------------
MONEY MARKET FUND GOVERNMENT FUND TAX-EXEMPT FUND
----------------------------- ------------------------------ ---------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
APRIL 30, 1997 OCTOBER 31, APRIL 30, 1997 OCTOBER 31, APRIL 30, 1997 OCTOBER 31,
(UNAUDITED) 1996 (UNAUDITED) 1996 (UNAUDITED) 1996
------------ ----------- -------------- ----------- -------------- -----------
DOLLAR AMOUNTS
RETAIL A SHARES:
<S> <C> <C> <C> <C> <C> <C>
Sold ...................... $2,094,869,913 $2,569,450,390 $374,329,287 $ 690,219,757 $ 208,210,101 $320,444,954
Issued in connection with
acquisition (Note 9)..... -- 267,075,370 -- -- -- --
Issued to shareholders in
reinvestment of dividends 32,476,091 44,351,046 7,991,649 14,857,984 1,767,468 3,692,232
Repurchased ............. (1,703,565,129) (2,302,302,319) (355,057,859) (699,477,779) (197,612,009) (333,641,800)
-------------- -------------- ------------ --------------- ------------- ------------
Net increase (decrease) in
shares outstanding ... $ 423,780,875 $ 578,574,487 $ 27,263,077 $ 5,599,962 $ 12,365,560 $ (9,504,614)
============== ============== ============ =============== ============= ============
RETAIL B SHARES:
Sold ...................... 468,295 N/A N/A N/A N/A N/A
Issued to shareholders in
reinvestment of dividends 1,036 N/A N/A N/A N/A N/A
Repurchased ............... -- N/A N/A N/A N/A N/A
-------------- -------------- ------------ --------------- ------------- ------------
Net increase in
shares outstanding ... 469,331 N/A N/A N/A N/A N/A
============== ============== ============ =============== ============= ============
TRUST SHARES:
Sold ...................... 1,305,662,981 2,715,304,160 686,554,377 1,594,273,956 146,838,079 224,132,385
Issued in connection with
acquisition (Note 9)..... -- 511,462,955 -- -- -- --
Issued to shareholders in
reinvestment of dividends 381,246 601,681 353,879 657,170 15,684 27,737
Repurchased ............... (1,265,267,751) (2,637,174,538) (579,042,088) (1,539,883,130) (147,069,209) (220,555,411)
-------------- -------------- ------------ -------------- -------------- ------------
Net increase (decrease) in
shares outstanding ... $ 40,776,476 $ 590,186,948 $107,866,168 $ 55,047,996 $ (215,446) $ 3,604,711
============== ============== ============ =============== ============== ============
SHARE ACTIVITY
RETAIL A SHARES:
Sold ...................... 2,094,869,913 2,569,450,390 374,329,287 690,219,757 208,210,101 320,444,954
Issued in connection with
acquisition (Note 9)..... -- 267,079,142 -- -- -- --
Issued to shareholders in
reinvestment of dividends 32,476,091 44,351,046 7,991,649 14,857,984 1,767,468 3,692,232
Repurchased ............... (1,703,565,129) (2,302,302,319) (355,057,859) (699,477,779) (197,612,009) (333,641,800)
-------------- -------------- ------------ --------------- ------------- ------------
Net increase (decrease) in
shares outstanding ... 423,780,875 578,578,259 27,263,077 5,599,962 12,365,560 (9,504,614)
============== ============== ============ =============== ============= ============
RETAIL B SHARES:
Sold ...................... 468,295 N/A N/A N/A N/A
Issued to shareholders in
reinvestment of dividends 1,036 N/A N/A N/A N/A N/A
Repurchased ............... -- N/A N/A N/A N/A N/A
-------------- -------------- ------------ --------------- ------------- ------------
Net increase in
shares outstanding ... 469,331 N/A N/A N/A N/A N/A
============== ============== ============ =============== ============= ============
TRUST SHARES:
Sold ...................... 1,305,662,981 2,715,304,160 686,554,377 1,594,273,956 146,838,079 224,132,385
Issued in connection with
acquisition (Note 9)..... -- 511,462,955 -- -- -- --
Issued to shareholders in
reinvestment of dividends 381,246 601,681 353,879 657,170 15,684 27,737
Repurchased ............... (1,265,267,751) (2,637,174,538) (579,042,088) (1,539,883,130) (147,069,209) (220,555,411)
-------------- -------------- ------------ --------------- ------------- ------------
Net increase (decrease) in
shares outstanding ... 40,776,476 590,194,258 107,866,168 55,047,996 (215,446) 3,604,711
============== ============== ============ =============== ============= ============
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
---------------
STATEMENT OF CHANGES IN NET ASSETS -
THE GALAXY FUND CAPITAL STOCK ACTIVITY
---------------
CONNECTICUT MUNICIPAL MASSACHUSETTS MUNICIPAL
U.S. TREASURY FUND MONEY MARKET FUND MONEY MARKET FUND
----------------------------- ------------------------------ ---------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
APRIL 30, 1997 OCTOBER 31, APRIL 30, 1997 OCTOBER 31, APRIL 30, 1997 OCTOBER 31,
(UNAUDITED) 1996 (UNAUDITED) 1996 (UNAUDITED) 1996
------------ ----------- -------------- ----------- -------------- -----------
DOLLAR AMOUNTS
RETAIL A SHARES:
<S> <C> <C> <C> <C> <C> <C>
Sold ...................... $ 611,513,255 $ 853,166,073 $141,990,490 $ 259,542,285 $ 61,614,383 $ 72,519,201
Issued to shareholders in
reinvestment of dividends 10,969,828 16,296,206 1,138,989 1,891,469 486,399 679,571
Repurchased .............. (562,009,511) (744,916,145) (137,015,508) (253,516,407) (51,420,594) (66,446,448)
-------------- -------------- ------------ --------------- ------------- ------------
Net increase in
shares outstanding ... $ 60,473,572 $ 124,546,134 $ 6,113,971 $ 7,917,347 $ 10,680,188 $ 6,752,324
============== ============== ============ =============== ============= ============
TRUST SHARES:
Sold ...................... $ 584,029,012 $ 884,449,801 $ N/A $ N/A $ N/A $ N/A
Issued to shareholders in
reinvestment of dividends 183,017 282,478 N/A N/A N/A N/A
Repurchased .............. (607,975,383) (801,487,516) N/A N/A N/A N/A
-------------- -------------- ------------ --------------- ------------- ------------
Net increase (decrease) in
shares outstanding ... $ (23,763,354) $ 83,244,763 $ N/A $ N/A $ N/A $ N/A
============== ============== ============ =============== ============= ============
SHARE ACTIVITY
RETAIL SHARES:
Sold ...................... 611,513,255 853,166,073 141,990,490 259,542,285 61,614,383 72,519,201
Issued to shareholders in
reinvestment of dividends 10,969,828 16,296,206 1,138,989 1,891,469 486,399 679,571
Repurchased ............... (562,009,511) (744,916,145) (137,015,508) (253,516,407) (51,420,594) (66,446,448)
-------------- -------------- ------------ --------------- ------------- ------------
Net increase in
shares outstanding ... 60,473,572 124,546,134 6,113,971 7,917,347 10,680,188 6,752,324
============== ============== ============ =============== ============= ============
TRUST SHARES:
Sold ...................... 584,029,012 884,449,801 N/A N/A N/A N/A
Issued to shareholders in
reinvestment of dividends 183,017 282,478 N/A N/A N/A N/A
Repurchased ............... (607,975,383) (801,487,516) N/A N/A N/A N/A
-------------- -------------- ------------ --------------- ------------- ------------
Net increase (decrease) in
shares outstanding ... (23,763,354) 83,244,763 N/A N/A N/A N/A
============== ============== ============ =============== ============= ============
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
---------------
MONEY MARKET FUND
FINANCIAL HIGHLIGHTS
THE GALAXY FUND FOR A RETAIL A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
---------------
<CAPTION>
SIX MONTHS ENDED YEARS ENDED OCTOBER 31,
APRIL 30, 1997 ------------------------------------------------------------
(UNAUDITED) 1996 1995 1994(1) 1993(1) 1992(1)
----------- ---- ---- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period.... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- ---------- -------- -------- -------- --------
Income from Investment Operations:
Net investment income (A)............. 0.02 0.05 0.05 0.03 0.03 0.04
Net realized gain (loss) on investments -- -- -- -- -- --
---------- ---------- -------- -------- -------- --------
Total from Investment Operations:... 0.02 0.05 0.05 0.03 0.03 0.04
---------- ---------- -------- -------- -------- --------
Less Dividends:
Dividends from net investment income.. (0.02) (0.05) (0.05) (0.03) (0.03) (0.04)
Dividends from net realized capital
gains (B) .......................... -- -- -- -- -- --
---------- ---------- -------- -------- -------- --------
Total Dividends:.................... (0.02) (0.05) (0.05) (0.03) (0.03) (0.04)
---------- ---------- -------- -------- -------- --------
Net increase (decrease) in net asset
value ................................ -- -- -- -- -- --
---------- ---------- -------- -------- -------- --------
Net Asset Value, End of Period.......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ======== ======== ======== ========
Total Return (C)........................ 2.36%** 4.78% 5.23% 3.35% 2.78% 4.07%
Ratios/Supplemental Data:
Net Assets, End of Period (000's)....... $1,583,092 $1,159,312 $580,762 $797,399 $577,558 $590,911
Ratios to average net assets:
Net investment income
including reimbursement/waiver...... 4.72%* 4.67% 5.12% 3.38% 2.74% 3.74%
Operating expenses
including reimbursement/waiver...... 0.70%* 0.77% 0.74% 0.64% 0.63% 0.58%
Operating expenses
excluding reimbursement/waiver...... 0.73%* 0.80% 0.76% 0.64% 0.63% 0.58%
- ----------------------
* Annualized
** Not Annualized
(1) Prior to November 1, 1994, the Fund offered a single series of shares. As of such date, the existing series of shares was
designated as Retail A Shares and the Fund began issuing a second series of shares designated as Trust Shares.
(A) Net investment income per share before reimbursement/waiver of fees by the Investment Adviser and/or Administrator was as
follows:
<CAPTION>
SIX MONTHS ENDED YEARS ENDED OCTOBER 31,
APRIL 30, 1997 ----------------------------------------------------------------
(UNAUDITED) 1996 1995 1994(1) 1993(1) 1992(1)
----------- ---- ---- ------- ------- -------
<C> <C> <C> <C> <C> <C>
$ 0.02 $ 0.05 $ 0.05 $ 0.03 $ 0.03 $ 0.04
(B) Represents less than $0.01 per share for year 1992.
(C) Total return for 1994 includes the effect of the voluntary capital contribution from the Investment Adviser (see Note 5).
Without this capital contribution, the total return would have been 3.35%.
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
---------------
Money Market Fund
FINANCIAL HIGHLIGHTS
THE GALAXY FUND For a Share outstanding throughout each period.
TRUST SHARES ---------------
<CAPTION>
RETAIL B SHARES
SIX MONTHS ENDED PERIOD ENDED
APRIL 30, 1997 YEARS ENDED OCTOBER 31, APRIL 30, 1997
(UNAUDITED) 1996 1995(1) (UNAUDITED)(2)
---------- -------- --------- -------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period........... $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------
Income from Investment Operations:
Net investment income (A)................... 0.02 0.05 0.05 0.01
Net realized gain (loss) on investments..... -- -- -- --
-------- -------- -------- -------
Total from Investment Operations:......... 0.02 0.05 0.05 0.01
-------- -------- -------- -------
Less Dividends:
Dividends from net investment income........ (0.02) (0.05) (0.05) (0.01)
Dividends from net realized capital gains... -- -- -- --
-------- -------- -------- -------
Total Dividends:.......................... (0.02) (0.05) (0.05) (0.01)
-------- -------- -------- -------
Net increase (decrease) in net asset value..... -- -- -- --
-------- -------- -------- -------
Net Asset Value, End of Period................. $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== =======
Total Return (B)............................... 2.46%** 5.00% 5.43% 0.50%**
Ratios/Supplemental Data:
Net Assets, End of Period (000's).............. $964,998 $924,222 $334,054 $ 469
Ratios to average net assets:
Net investment income
including reimbursement/waiver........... 4.91%* 4.89% 5.30% 4.35%*
Operating expenses
including reimbursement/waiver............ 0.51%* 0.55% 0.55% 1.17%*
Operating expenses
excluding reimbursement/waiver............ 0.54%* 0.58% 0.56% 1.20%*
- ----------------------------------------
* Annualized
** Not Annualized
(1) On November 1, 1994, the Fund began issuing a second series of shares designated as Trust Shares. (2) The Fund began
offering Retail B Shares on March 6, 1997
(A) Net investment income per share before reimbursement/waiver of fees by the Investment Adviser and/or Administrator was as
follows:
<CAPTION>
SIX MONTHS ENDED YEARS ENDED OCTOBER 31,
APRIL 30, 1997(2) -----------------------
(UNAUDITED) 1996 1995(1)
----------- ---- -------
<C> <C> <C>
Trust Shares $ 0.02 $ 0.05 $ 0.05
Retail B Shares $ 0.01 N/A N/A
(B) Calculation does not include sales charge for Retail B Shares.
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
---------------
GOVERNMENT FUND
FINANCIAL HIGHLIGHTS
THE GALAXY FUND FOR A RETAIL A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
---------------
<CAPTION>
SIX MONTHS ENDED YEARS ENDED OCTOBER 31,
APRIL 30, 1997 -------------------------------------------------------------------
(UNAUDITED) 1996 1995 1994(1) 1993(1) 1992(1)
----------- ---- ---- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period ... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- -------- --------
Income from Investment Operations:
Net investment income (A) ............ 0.02 0.05 0.05 0.03 0.03 0.04
Net realized gain (loss) on investments -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Total from Investment Operations: .. 0.02 0.05 0.05 0.03 0.03 0.04
-------- -------- -------- -------- -------- --------
Less Dividends:
Dividends from net investment income.. (0.02) (0.05) (0.05) (0.03) (0.03) (0.04)
Dividends from net realized capital
gains (B) .......................... -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Total Dividends: ..................... (0.02) (0.05) (0.05) (0.03) (0.03) (0.04)
-------- -------- -------- -------- -------- --------
Net increase (decrease) in net asset
value -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Net Asset Value, End of Period ......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ======== ========
Total Return (C) ....................... 2.33%** 4.72% 5.20% 3.49% 2.83% 4.19%
Ratios/Supplemental Data:
Net Assets, End of Period (000's) ...... $353,674 $326,411 $320,795 $759,106 $685,304 $636,338
Ratios to average net assets:
Net investment income
including reimbursement/waiver ..... 4.67%* 4.62% 5.11% 3.36% 2.79% 3.67%
Operating expenses
including reimbursement/waiver ..... 0.70%* 0.75% 0.73% 0.54% 0.55% 0.53%
Operating expenses
excluding reimbursement/waiver ..... 0.72%* 0.76% 0.74% 0.54% 0.55% 0.53%
- ----------------------
* Annualized
** Not Annualized
(1) Prior to November 1, 1994, the Fund offered a single series of shares. As of such date, the existing series of shares was
designated as Retail A Shares and the Fund began issuing a second series of shares designated as Trust Shares.
(A) Net investment income per share before reimbursement/waiver of fees by the Investment Adviser and/or Administrator was as
follows:
<CAPTION>
SIX MONTHS ENDED YEARS ENDED OCTOBER 31,
APRIL 30, 1997 -------------------------------------------------------------------
(UNAUDITED) 1996 1995 1994(1) 1993(1) 1992(1)
----------- ---- ---- ------- ------- -------
<C> <C> <C> <C> <C> <C>
$ 0.02 $ 0.05 $ 0.05 $ 0.03 $ 0.03 $ 0.04
(B) Represents less than $0.01 per share for year 1992.
(C) Total return for 1994 includes the effect of the voluntary capital contribution from the Investment Adviser (see Note 5).
Without this capital contribution, the total return would have been 3.49%.
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
---------------
GOVERNMENT FUND
FINANCIAL HIGHLIGHTS
THE GALAXY FUND FOR A TRUST SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
---------------
<CAPTION>
SIX MONTHS ENDED YEARS ENDED OCTOBER 31,
APRIL 30, 1997 -----------------------
(UNAUDITED) 1996 1995(1)
----------- ---- -------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period ..................................... $ 1.00 $ 1.00 $ 1.00
-------- -------- --------
Income from Investment Operations:
Net investment income (A) ............................................. 0.02 0.05 0.05
Net realized gain (loss) on investments ............................... -- -- --
-------- -------- --------
Total from Investment Operations: ................................... 0.02 0.05 0.05
-------- -------- --------
Less Dividends:
Dividends from net investment income .................................. (0.02) (0.05) (0.05)
Dividends from net realized capital gains ............................. -- -- --
-------- -------- --------
Total Dividends: .................................................... (0.02) (0.05) (0.05)
-------- -------- --------
Net increase (decrease) in net asset value ............................... -- -- --
-------- -------- --------
Net Asset Value, End of Period ........................................... $ 1.00 $ 1.00 $ 1.00
======== ======== ========
Total Return ............................................................. 2.44%** 4.95% 5.39%
Ratio/Supplemental Data:
Net Assets, End of Period (000's) ........................................ $841,625 $733,759 $678,679
Ratios to average net assets:
Net investment income including reimbursement/waiver .................. 4.87%* 4.85% 5.27%
Operating expenses including reimbursement/waiver ..................... 0.50%* 0.52% 0.53%
Operating expenses excluding reimbursement/waiver ..................... 0.52%* 0.53% 0.54%
- ------------------
* Annualized
** Not Annualized
(1) On November 1, 1994, the Fund began issuing a second series of shares designated as Trust Shares.
(A) Net investment income per share before reimbursement/waiver of fees by the Investment Adviser and/or Administrator was as
follows:
<CAPTION>
SIX MONTHS ENDED YEARS ENDED OCTOBER 31,
APRIL 30, 1997 ----------------------
(UNAUDITED) 1996 1995(1)
----------- ---- -------
<C> <C> <C>
$ 0.02 $ 0.05 $ 0.05
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
---------------
TAX-EXEMPT FUND
FINANCIAL HIGHLIGHTS
THE GALAXY FUND FOR A RETAIL A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
---------------
<CAPTION>
SIX MONTHS ENDED YEARS ENDED OCTOBER 31,
APRIL 30, 1997 -------------------------------------------------------------------
(UNAUDITED) 1996 1995 1994(1) 1993(1) 1992(1)
----------- ---- ---- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period.... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- -------- --------
Income from Investment Operations:
Net investment income (A)............ 0.01 0.03 0.03 0.02 0.02 0.03
Net realized gain (loss) on investments -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Total from Investment Operations:.. 0.01 0.03 0.03 0.02 0.02 0.03
-------- -------- -------- -------- -------- --------
Less Dividends:
Dividends from net investment income. (0.01) (0.03) (0.03) (0.02) (0.02) (0.03)
Dividends from net realized capital gains -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Total Dividends:................... (0.01) (0.03) (0.03) (0.02) (0.02) (0.03)
-------- -------- -------- -------- -------- --------
Net increase (decrease) in net asset value -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Net Asset Value, End of Period.......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ======== ========
Total Return ........................... 1.40%** 2.82% 3.16% 2.24% 1.93% 2.71%
Ratios/Supplemental Data:
Net Assets, End of Period (000's)....... $129,913 $117,548 $127,056 $271,050 $301,399 $223,173
Ratios to average net assets:
Net investment income
including reimbursement/waiver..... 2.80%* 2.78% 3.12% 2.12% 1.92% 2.64%
Operating expenses
including reimbursement/waiver..... 0.68%* 0.68% 0.68% 0.58% 0.59% 0.57%
Operating expenses
excluding reimbursement/waiver..... 0.70%* 0.69% 0.71% 0.58% 0.59% 0.57%
- -----------------
* Annualized
** Not Annualized
(1) Prior to November 1, 1994, the Fund offered a single series of shares. As of such date, the existing series of shares was
designated as Retail A Shares and the Fund began issuing a second series of shares designated as Trust Shares.
(A) Net investment income per share before reimbursement/waiver of fees by the Investment Adviser and/or Administrator was as
follows:
<CAPTION>
SIX MONTHS ENDED YEARS ENDED OCTOBER 31,
APRIL 30, 1997 ------------------------------------------------------------------
(UNAUDITED) 1996 1995 1994(1) 1993(1) 1992(1)
----------- ---- ---- ------- ------- -------
<C> <C> <C> <C> <C> <C>
$ 0.01 $ 0.03 $ 0.03 $ 0.02 $ 0.02 $ 0.03
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
---------------
TAX-EXEMPT FUND
FINANCIAL HIGHLIGHTS
THE GALAXY FUND FOR A TRUST SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
---------------
<CAPTION>
SIX MONTHS ENDED YEARS ENDED OCTOBER 31,
APRIL 30, 1997 ------------------------
(UNAUDITED) 1996 1995(1)
----------- ---- -------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period ................................... $ 1.00 $ 1.00 $ 1.00
-------- -------- --------
Income from Investment Operations:
Net investment income (A) ............................................ 0.01 0.03 0.03
Net realized gain (loss) on investments .............................. -- -- --
-------- -------- --------
Total from Investment Operations: .................................. 0.01 0.03 0.03
-------- -------- --------
Less Dividends:
Dividends from net investment income ................................. (0.01) (0.03) (0.03)
Dividends from net realized capital gains ............................ -- -- --
-------- -------- --------
Total Dividends: ................................................... (0.01) (0.03) (0.03)
-------- -------- --------
Net increase (decrease) in net asset value .............................. -- -- --
-------- -------- --------
Net Asset Value, End of Period .......................................... $ 1.00 $ 1.00 $ 1.00
======== ======== ========
Total Return ............................................................ 1.47%** 2.97% 3.29%
Ratios/Supplemental Data:
Net Assets, End of Period (000's) ....................................... $184,092 $184,307 $180,706
Ratios to average net assets:
Net investment income including reimbursement/waiver ................. 2.95%* 2.92% 3.24%
Operating expenses including reimbursement/waiver .................... 0.53%* 0.54% 0.55%
Operating expenses excluding reimbursement/waiver .................... 0.53%* 0.54% 0.56%
- -----------------
* Annualized
** Not Annualized
(1) On November 1, 1994, the Fund began issuing a second series of shares designated as Trust Shares.
(A) Net investment income per share before reimbursement/waiver of fees by the Investment Adviser and/or Administrator was as
follows:
<CAPTION>
SIX MONTHS ENDED YEARS ENDED OCTOBER 31,
APRIL 30, 1997 ------------------------
(UNAUDITED) 1996 1995(1)
----------- ---- -------
<C> <C> <C>
$ 0.01 $ 0.03 $ 0.03
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
---------------
U.S. TREASURY FUND
FINANCIAL HIGHLIGHTS
THE GALAXY FUND FOR A RETAIL A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
---------------
<CAPTION>
SIX MONTHS ENDED YEARS ENDED OCTOBER 31,
APRIL 30, 1997 -------------------------------------------------------------------
(UNAUDITED) 1996 1995 1994(1) 1993(1) 1992(1)
----------- ---- ---- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period ... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- -------- --------
Income from Investment Operations:
Net investment income (A) ........... 0.02 0.05 0.05 0.03 0.03 0.04
Net realized gain (loss) on investments -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Total from Investment Operations: . 0.02 0.05 0.05 0.03 0.03 0.04
-------- -------- -------- -------- -------- --------
Less Dividends:
Dividends from net investment income (0.02) (0.05) (0.05) (0.03) (0.03) (0.04)
Dividends from net realized capital
gains .............................. -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Total Dividends: .................. (0.02) (0.05) (0.05) (0.03) (0.03) (0.04)
-------- -------- -------- -------- -------- --------
Net increase (decrease) in net asset value -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Net Asset Value, End of Period ......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ======== ========
Total Return (B) ....................... 2.26%** 4.63% 4.99% 3.30% 2.75% 3.69%
Ratios/Supplemental Data:
Net Assets, End of Period (000's) ...... $503,705 $443,230 $318,621 $466,993 $447,960 $482,416
Ratios to average net assets:
Net investment income
including reimbursement/waiver .... 4.51%* 4.53% 4.90% 3.24% 2.71% 3.51%
Operating expenses
including reimbursement/waiver .... 0.70%* 0.69% 0.73% 0.56% 0.55% 0.49%
Operating expenses
excluding reimbursement/waiver .... 0.71%* 0.69% 0.73% 0.56% 0.55% 0.55%
- ----------------
* Annualized
** Not Annualized
(1) Prior to November 1, 1994, the Fund offered a single series of shares. As of such date, the existing series of shares was
designated as Retail A Shares and the Fund began issuing a second series of shares designated as Trust Shares.
(A) Net investment income per share before reimbursement/waiver of fees by the Investment Adviser and/or Administrator was as
follows:
<CAPTION>
SIX MONTHS ENDED YEARS ENDED OCTOBER 31,
APRIL 30, 1997 -------------------------------------------------------------------=
(UNAUDITED) 1996 1995 1994(1) 1993(1) 1992(1)
----------- ---- ---- ------- ------- -------
<C> <C> <C> <C> <C> <C>
$ 0.02 $ 0.05 $ 0.05 $ 0.03 $ 0.03 $ 0.04
(B) Total return for 1994 includes the effect of the voluntary capital contribution from the Investment Adviser (see Note 5).
Without this capital contribution, the total return would have been 3.30%.
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
---------------
U.S. TREASURY FUND
FINANCIAL HIGHLIGHTS
THE GALAXY FUND FOR A TRUST SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
---------------
<CAPTION>
SIX MONTHS ENDED YEARS ENDED OCTOBER 31,
APRIL 30, 1997 -----------------------
(UNAUDITED) 1996 1995(1)
----------- ---- -------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period..................................... $ 1.00 $ 1.00 $ 1.00
-------- -------- --------
Income from Investment Operations:
Net investment income (A)............................................. 0.02 0.05 0.05
Net realized gain (loss) on investments............................... -- -- --
-------- -------- --------
Total from Investment Operations:................................... 0.02 0.05 0.05
-------- -------- --------
Less Dividends:
Dividends from net investment income.................................. (0.02) (0.05) (0.05)
Dividends from net realized capital gains............................. -- -- --
-------- -------- --------
Total Dividends:.................................................... (0.02) (0.05) (0.05)
-------- -------- --------
Net increase (decrease) in net asset value............................... -- -- --
-------- -------- --------
Net Asset Value, End of Period........................................... $ 1.00 $ 1.00 $ 1.00
======== ======== ========
Total Return............................................................. 2.34%** 4.80% 5.18%
Ratios/Supplemental Data:
Net Assets, End of Period (000's)........................................ $330,569 $354,331 $271,036
Ratios to average net assets:
Net investment income
including reimbursement/waiver..................................... 4.68%* 4.69% 5.06%
Operating expenses
including reimbursement/waiver..................................... 0.53%* 0.53% 0.55%
Operating expenses
excluding reimbursement/waiver.................................... 0.53%* 0.53% 0.55%
- --------------------
* Annualized
** Not Annualized
(1) On November 1, 1994, the Fund began issuing a second series of shares designated as Trust Shares.
(A) Net investment income per share before reimbursement/waiver of fees by the Investment Adviser and/or Administrator was as
follows:
<CAPTION>
SIX MONTHS ENDED YEARS ENDED OCTOBER 31,
APRIL 30, 1997 -----------------------
(UNAUDITED) 1996 1995(1)
----------- ---- -------
<C> <C> <C>
$ 0.02 $ 0.05 $ 0.05
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
---------------
CONNECTICUT MUNICIPAL MONEY MARKET FUND
FINANCIAL HIGHLIGHTS FOR A SHARE
THE GALAXY FUND OUTSTANDING THROUGHOUT EACH PERIOD.
---------------
<CAPTION>
YEARS ENDED OCTOBER 31,
---------------------------------------------------------------------
1996 1995 1994 1993
SIX MONTHS ENDED --------- -------------------- --------------------- ---------
APRIL 30, 1997 INVESTMENT TRUST INVESTMENT TRUST INVESTMENT
(UNAUDITED) SHARES(3) SHARES SHARES SHARES SHARES(2) SHARES(1)
----------- --------- ------ ------ ------ --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period...... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- ------- ------- ------- ------- ------
Income from Investment Operations:
Net investment income (A)(C)........... 0.01 0.03 0.03 0.03 0.02 0.02 --
Net realized gain (loss) on investments -- -- -- -- -- -- --
-------- -------- ------- ------- ------- ------- ------
Total from Investment Operations: (A) 0.01 0.03 0.03 0.03 0.02 0.02 --
-------- -------- ------- ------- ------- ------- ------
Less Dividends:
Dividends from net investment income (A) (0.01) (0.03) (0.03) (0.03) (0.02) (0.02) --
Dividends from net realized capital gains -- -- -- -- -- -- --
-------- -------- ------- ------- ------- ------- ------
Total Dividends: (A)................. (0.01) (0.03) (0.03) (0.03) (0.02) (0.02) --
-------- -------- ------- ------- ------- ------- ------
Net increase (decrease) in net asset value -- -- -- -- -- -- --
-------- -------- ------- ------- ------- ------- ------
Net Asset Value, End of Period............ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======= ======= ======= ======= ======
Total Return (B)......................... 1.40%** 2.83% 2.94% 3.19% 1.83% 2.08%** 0.14%**
Ratios/Supplemental Data:
Net Assets, End of Period (000's)......... $116,662 $110,544 $71,472 $31,164 $80,663 $34,354 $6,582
Ratios to average net assets:
Net investment income
including reimbursement/waiver....... 2.82%* 2.79% 2.88% 3.14% 1.99% 2.24%* 2.12%*
Operating expenses
including reimbursement/waiver....... 0.57%* 0.64% 0.82% 0.57% 0.78% 0.53%* 0.36%*
Operating expenses
excluding reimbursement/waiver....... 0.61%* 0.73% 1.29% 0.79% 1.50% 1.00%* 5.82%*
- -------------------
* Annualized
** Not Annualized
(1) The Fund commenced operations on October 4, 1993 as a separate investment portfolio (the "Predecessor Fund") of The Shawmut
Funds.
(2) The Predecessor Fund began offering Trust Shares on December 16, 1993.
(3) On December 4, 1995, the Predecessor Fund was reorganized as a new portfolio of the Trust with a single series of shares.
Prior to the reorganization, the Predecessor Fund offered two series of shares, Investment Shares and Trust Shares. In
connection with the reorganization, the shareholders of the Predecessor Fund exchanged shares from each of the two series
for a single series of shares in the Galaxy Connecticut Municipal Money Market Fund (Note 9).
(A) Represents less than $0.01 per share for year 1993.
(B) Calculation does not include sales charge for Investment Shares of the Predecessor Fund.
(C) Net investment income per share before reimbursement/waiver of fees by the Investment Adviser and/or other parties was as
follows:
<CAPTION>
PERIODS ENDED OCTOBER 31,
SIX MONTHS ENDED
APRIL 30, 1997 (UNAUDITED)
(UNAUDITED) 1996 1995 1994 1993
---------------- --------- ----------- ----------
<S> <C> <C> <C> <C> <C>
Shares $ 0.01 $ 0.03 $ N/A $ N/A $ N/A
Investment Shares N/A N/A 0.03 0.01 0.00
Trust Shares N/A N/A 0.02 0.01 N/A
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
---------------
MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
FINANCIAL HIGHLIGHTS FOR A SHARE
THE GALAXY FUND OUTSTANDING THROUGHOUT EACH PERIOD.
---------------
<CAPTION>
SIX MONTHS ENDED YEARS ENDED OCTOBER 31,
APRIL 30, 1997 ----------------------------------------------------
(UNAUDITED) 1996 1995 1994 1993(2)
----------- ---- ---- ---- -------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- ------- ------
Income from Investment Operations:
Net investment income (A)(B)........................ 0.01 0.03 0.03 0.02 --
Net realized gain (loss) on investments............. -- -- -- -- --
------- ------- ------- ------- ------
Total from Investment Operations: (A)............. 0.01 0.03 0.03 0.02 --
------- ------- ------- ------- ------
Less Dividends:
Dividends from net investment income (A)............ (0.01) (0.03) (0.03) (0.02) --
Dividends from net realized capital gains........... -- -- -- -- --
------- ------- ------- ------- ------
Total Dividends: (A).............................. (0.01) (0.03) (0.03) (0.02) --
------- ------- ------- ------- ------
Net increase (decrease) in net asset value............. -- -- -- -- --
------- ------- ------- ------- ------
Net Asset Value, End of Period......................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= ======
Total Return ......................................... 1.39%** 2.83% 3.21% 1.99% 0.12%**
Ratios/Supplemental Data:
Net Assets, End of Period (000's)...................... $57,750 $47,066 $40,326 $31,516 $1,237
Ratios to average net assets:
Net investment income including reimbursement/waiver 2.80%* 2.78% 3.16% 2.00% 2.75%*
Operating expenses including reimbursement/waiver... 0.59%* 0.62% 0.57% 0.53% 0.11%*
Operating expenses excluding reimbursement/waiver... 0.67%* 0.83% 1.06% 1.21% 35.42%*
- ----------------
* Annualized
** Not Annualized
(1) The Fund commenced operations on October 5, 1993 as a separate investment portfolio (the Predecessor Fund) of The Shawmut
Funds.
(2) On December 4, 1995, the Predecessor Fund was reorganized as a new portfolio of the Trust (Note 9).
(A) Represents less than $0.01 per share for year 1993.
(B) Net investment income per share before reimbursement/waiver of fees by the Investment Adviser and/or other parties was as
follows:
<CAPTION>
PERIODS ENDED OCTOBER 31,
SIX MONTHS ENDED (UNAUDITED)
APRIL 30, 1997 ---------------------------------------------------
(UNAUDITED) 1996 1995 1994 1993(2)
----------- ---- ---- ---- -------
<C> <C> <C> <C> <C>
$ 0.01 $ 0.03 $ 0.03 $ 0.01 $(0.01)
See Notes to Financial Statements.
</TABLE>
<PAGE>
---------------
THE GALAXY FUND NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
---------------
1. ORGANIZATION
The Galaxy Fund, a Massachusetts business trust (the "Trust"), is registered
under the Investment Company Act of 1940, as amended (the "1940 Act"), as an
open-end management investment company. As of the date of this report, the Trust
offered twenty-four managed investment portfolios. The accompanying financial
statements and financial highlights are those of the Money Market, Government,
Tax-Exempt, U.S. Treasury, Connecticut Municipal Money Market and Massachusetts
Municipal Money Market Funds (individually, a "Fund," collectively, the "Funds")
only.
The Money Market Fund is authorized to issue three series of shares (Trust
Shares, Retail A Shares and Retail B Shares). The Government, Tax Exempt and
U.S. Treasury Funds are authorized to issue two series of Shares (Trust Shares
and Retail A Shares). Trust Shares, Retail A Shares and Retail B Shares are
substantially the same, except (i) Retail B Shares are subject to a maximum
5.00% contingent deferred sales charge and (ii) series specific expenses
(distribution and/or shareholder servicing fees and transfer agent fees) are
borne by the specific series of shares to which they relate. Retail B Shares of
the Money Market Fund are not offered for purchase and are available only
through exchange of other Retail B Shares offered by certain of the Trust's
non-money market portfolios. Six years after the date of purchase of the
exchanged Retail B Shares, Retail B Shares of the Money Market Fund will
automatically convert to Retail A Shares of the Fund.
The Connecticut Municipal Money Market and Massachusetts Municipal Money
Market Funds are authorized to issue one series of shares. Shares of the
Connecticut Municipal Money Market and Massachusetts Municipal Money Market
Funds, together with Retail A Shares of the Money Market, Government, Tax-Exempt
and U.S. Treasury Funds are hereinafter referred to as "Retail Shares".
2. SIGNIFICANT ACCOUNTING POLICIES
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 income and expenses during the reporting
period. Actual results could differ from those estimates. The following is a
summary of significant accounting policies in conformity with generally accepted
accounting principles consistently followed by the Funds in the preparation of
the financial statements.
PORTFOLIO VALUATION: Securities in the Funds are valued utilizing the
amortized cost valuation method permitted in accordance with Rule 2a-7 under the
1940 Act. This method involves valuing a portfolio security initially at its
cost and thereafter assuming a constant amortization to maturity of any discount
or premium.
SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
accounted for on a trade date basis. Net realized gains or losses on sales of
securities are determined by the identified cost method. Interest income is
recorded on the accrual basis. Investment income and realized and unrealized
gains and losses are allocated to the separate series of a Fund based upon the
outstanding shares of each series.
DIVIDENDS TO SHAREHOLDERS: Dividends from net investment income are
determined separately for each series of a Fund and are declared daily and paid
monthly. Net realized capital gains, if any, are distributed at least annually.
Income dividends and capital gain distributions are determined in accordance
with income tax regulations which may differ from generally accepted accounting
principles.
FEDERAL INCOME TAXES: The Trust treats each Fund as a separate entity for
Federal income tax purposes. Each Fund intends to qualify each year as a
"regulated investment company" under Subchapter M of the Internal Revenue Code
of 1986, as amended. By so qualifying, each Fund will not be subject to Federal
income taxes to the extent that it distributes substantially all of its taxable
or tax-exempt income, if any, for its tax year ending October 31. In addition,
by distributing in each calendar year substantially all of its net investment
income, capital gains, and certain other amounts, if any, each Fund will not be
subject to a Federal excise tax. Therefore, no Federal income or excise tax
provision is recorded.
REPURCHASE AGREEMENTS: Each Fund, except the U.S. Treasury Fund, may engage
in repurchase agreement transactions with institutions that the Trust's
investment adviser has determined are creditworthy pursuant to guidelines
established by the Trust's Board of Trustees. Each repurchase agreement
transaction is recorded at cost plus accrued interest. Each Fund requires that
the securities purchased in a repurchase agreement transaction be transferred to
the Trust's custodian in a manner that is intended to enable the Fund to obtain
those securities in the event of a counterparty default. The value of the
collateral securities, including accrued interest, is monitored daily to ensure
that the value of the collateral, including accrued interest, equals or exceeds
the repurchase price. Repurchase agreement transactions involve certain risks in
the event of default or insolvency of the counterparty, including possible
delays or restrictions upon a Fund's ability to dispose of the underlying
securities, and a possible decline in the value of the underlying securities
during the period while the Fund seeks to assert its rights.
EXPENSES: The Trust accounts separately for the assets, liabilities and
operations of each Fund. Expenses directly attributable to a Fund are charged to
the Fund, while expenses which are attributable to more than one fund of the
Trust are allocated among the respective funds.
In addition, expenses of a Fund not directly attributable to the operations
of a particular series of shares of the Fund are allocated to the separate
series based upon the outstanding shares of each series. Operating expenses
directly attributable to a series of shares of a Fund are charged to the
operations of that series.
ORGANIZATION COSTS: The U.S. Treasury Fund bears all costs in connection
with its organization, including the fees and expenses of registering and
qualifying its initial shares for distribution under Federal and state
securities laws. All such costs have been amortized using the straight-line
method over a period of five years beginning with the Fund's commencement of
operations.
3. INVESTMENT ADVISORY, ADMINISTRATION, SHAREHOLDER SERVICES AND OTHER FEES
The Trust and Fleet Investment Advisors Inc. (the "Investment Adviser" or
"Fleet"), an indirect wholly-owned subsidiary of Fleet Financial Group, Inc.,
are parties to an investment advisory agreement under which the Investment
Adviser provides services for a fee, computed daily and paid monthly, at the
following annual rates: with respect to the Money Market, Government and
Tax-Exempt Funds, 0.40% of the average daily net assets of each Fund, and with
respect to the U.S. Treasury, Connecticut Municipal Money Market and
Massachusetts Municipal Money Market Funds, 0.40% of the first $750,000,000 of
net assets of each Fund plus 0.35% of net assets of each Fund in excess of
$750,000,000. The Trust has been advised by Fleet that, with respect to the
Money Market, Government and Tax-Exempt Funds, Fleet intends to waive advisory
fees payable to it by each Fund by 0.05% to the extent that a Fund's net assets
exceed $750,000,000.
Prior to December 4, 1995, Shawmut Bank, N.A. ("Shawmut Bank") provided
investment advisory services to the Shawmut Connecticut Municipal Money Market
and Shawmut Massachusetts Municipal Money Market Funds, predecessor funds of the
Connecticut Municipal Money Market and Massachusetts Municipal Money Market
Funds (collectively, the "Predecessor Funds", see Note 9). Shawmut Bank was paid
a fee for its services at the annual rate of 0.50% of each Predecessor Fund's
average daily net assets (see also Note 4).
The Trust and First Data Investor Services Group, Inc. ("FDISG"), a
wholly-owned subsidiary of First Data Corporation, are parties to an
administration agreement under which FDISG provides services for a fee, computed
daily and paid monthly, at the annual rate of 0.09% of the first $2.5 billion of
the combined average daily net assets of the Funds and the other funds offered
by the Trust (whose financial statements are provided in separate reports),
0.085% of the next $2.5 billion of combined average daily net assets and 0.075%
of combined average daily net assets over $5 billion.
Prior to September 5, 1996, FDISG was entitled to receive administration
fees, computed daily and paid monthly, at the annual rate of 0.09% of the first
$2.5 billion of the combined average daily net assets of the Funds and the other
funds offered by the Trust, 0.085% of the next $2.5 billion of combined average
daily net assets and 0.08% of combined average daily net assets over $5 billion.
In addition, FDISG also provides certain fund accounting, custody
administration and transfer agency services pursuant to certain fee
arrangements. Pursuant to such fee arrangements, FDISG compensates the Trust's
custodian bank, The Chase Manhattan Bank, for its services.
Prior to December 4, 1995, Federated Administrative Services ("FAS")
provided certain administrative and other services to the Predecessor Funds. The
fee paid to FAS was based on the average aggregate net assets of The Shawmut
Funds. In addition, prior to December 4, 1995, Federated Services Company
("FSC") provided transfer agency and dividend disbursing services to the
Predecessor Funds in return for fees at rates based on the size, type and number
of accounts and transactions made by shareholders. FSC also maintained
accounting records for the Predecessor Funds and was paid fees based on each
Predecessor Fund's average net assets plus out-of-pocket expenses.
First Data Distributors, Inc. (the "Distributor"), a wholly-owned subsidiary
of FDISG and an indirect wholly-owned subsidiary of First Data Corporation,
serves as the exclusive distributor of the Trust's shares.
The Trust has adopted a shareholder services plan (the "Services Plan") with
respect to Retail Shares of the Funds. Currently, the Services Plan has not been
implemented with respect to the Funds' Trust Shares. The Services Plan provides
compensation to institutions (including and currently limited to Fleet Bank and
its affiliates) which provide administrative and support services to their
customers who beneficially own Retail Shares, at an aggregate annual rate not to
exceed 0.25% of the average daily net asset value of the outstanding Retail
Shares of each Fund beneficially owned by such customers. The Trust, under the
direction of the Board of the Trustees, is currently limiting fees payable under
the Services Plan with respect to each Fund to an aggregate annual rate not to
exceed 0.10% of the average daily net asset value of the outstanding Retail
Shares beneficially owned by such customers.
The Trust has adopted a distribution and shareholder services plan (the
"12b-1 Plan") with respect to Retail B Shares of the Money Market Fund.
Under the 12b-1 Plan, the Trust may pay (i) the Distributor or another person
for expenses and activities primarily intended to result in the sale of Retail B
Shares, (ii) institutions for shareholder liaison services and (iii)
institutions for administrative support services. Currently, payments under the
12b-1 Plan for distribution services being made solely to broker-dealer
affiliates of Fleet Bank and payments under the 12b-1 Plan for shareholder
liason/shareholder administrative support services are being made solely to
Fleet Bank and its affiliates. Payments for distribution expenses may not exceed
an annual rate of 0.65% of the average daily assets attributable to the Fund's
outstanding Retail B Shares. The fees paid for shareholder liaison services
and/or administrative support services may not exceed the annual rates of 0.25%
and 0.25%, respectively, of the average daily net assets attributable to the
Fund's outstanding Retail B Shares owned of record or beneficially by the
institution's customers. The Trust intends to limit the Fund's payments for
shareholder liaison and administrative support services under the 12b-1 Plan to
an aggregate fee of not more than 0.10% of the average daily net asset value of
Retail B Shares owned of record or beneficially by the institution's customers.
For the six months ended April 30, 1997, the Funds paid shareholder servicing
fees and/or distribution fees under the Services Plan and 12b-1 Plan as follows:
SHAREHOLDER SERVICES DISTRIBUTION
FUND RETAIL A RETAIL B RETAIL B
- -----------------------------------------------------------------
Money Market Fund.......... $ 608,298 $ 22 $ 145
Government Fund............ 170,523 N/A N/A
Tax-Exempt Fund............ 62,941 N/A N/A
U.S. Treasury Fund......... 230,519 N/A N/A
Connecticut Municipal
Money Market Fund.......... 45,301 N/A N/A
Massachusetts Municipal
Money Market Fund.......... 23,170 N/A N/A
Prior to December 4, 1995, Federated Securities Corp. (the "Shawmut
Distributor") served as the principal distributor of the Predecessor Funds. The
Predecessor Funds had adopted a Distribution Plan (the "Plan") pursuant to Rule
12b-1 under the 1940 Act. Under the terms of the Plan, the Predecessor Funds
compensated the Shawmut Distributor, from the net assets of the Predecessor
Funds, to finance activities primarily intended to result in the sale of the
Predecessor Funds' Investment Shares. The Plan permitted the Predecessor Funds
to incur distribution expenses of up to 1/2 of 1% of the average daily net
assets of the Investment Shares for the Connecticut Municipal Money Market Fund
and shares of the Massachusetts Municipal Money Market Fund.
The Retail Shares, Retail B Shares and Trust Shares of a Fund bear series
specific transfer agent charges based upon the number of shareholder accounts
for each series. Trust Shares of the Funds (except the Tax-Exempt Fund) also
bear additional transfer agency fees in order to compensate FDISG for payments
made to Fleet Bank, an affiliate of the Investment Adviser, for performing
certain sub-account and administrative functions on a per account basis with
respect to Trust Shares held by defined contribution plans. These additional
fees are based on the number of shareholder accounts. For the six months ended
April 30, 1997, transfer agent charges for each series were as follows:
FUND RETAIL RETAIL B TRUST
- -----------------------------------------------------------------
Money Market Fund.......... $914,247 $ 25 $ 106,914
Government Fund............ 184,511 N/A 12,749
Tax-Exempt Fund............ 43,276 N/A 51
U.S. Treasury Fund......... 212,413 N/A 7,337
Connecticut Municipal
Money Market Fund.......... 1,421 N/A --
Massachusetts Municipal
Money Market Fund.......... 2,631 N/A --
Certain officers of the Trust may be officers of the Administrator and/or
Distributor. Such officers receive no compensation from the Trust for serving in
their respective roles. No officer, director or employee of the Investment
Adviser serves as an officer, Trustee or employee of the Trust. Each Trustee is
entitled to receive for services as a trustee of the Trust, The Galaxy VIP Fund
("VIP") and Galaxy Fund II ("Galaxy II") an aggregate fee of $29,000 per annum
plus certain other fees for attending or participating in meetings as well as
reimbursement for expenses incurred in attending meetings. The Chairman of the
Boards of Trustees and the President and Treasurer of the Trust, VIP and Galaxy
II are also entitled to additional fees for their services in these capacities.
These fees are allocated among the funds of the Trust, VIP and Galaxy II, based
on their relative net assets. Prior to November 1, 1996, each Trustee was
entitled to receive for services as a trustee of the Trust and VIP an aggregate
fee of $18,000 per annum plus certain other fees for attending or participating
in meetings as well as reimbursement for expenses incurred in attending
meetings. The Chairman of the Boards of Trustees of the Trust and VIP and the
President and Treasurer of the Trust and VIP were entitled to additional annual
fees for their services in these capacities.
In addition, effective March 1, 1996, each Trustee became eligible to
participate in the Trust's Deferred Compensation Plan (the "Plan"), an unfunded,
non-qualified deferred compensation plan. The Plan allows each Trustee to defer
receipt of all or a percentage of fees which otherwise would be payable for
services performed. On January 1, 1997, the Plan was merged into a combined
Deferred Compensation Plan for the Trust, VIP and Galaxy II.
Expenses for the six months ended April 30, 1997 include legal fees paid to
Drinker Biddle & Reath LLP. A partner of that firm is Secretary of the Trust.
4. WAIVER OF FEES AND REIMBURSEMENT OF EXPENSES
The Investment Adviser voluntarily agreed to waive a portion of its fees and
to reimburse the Funds for certain expenses so that total expenses would not
exceed certain expense limitations established for each Fund. The Investment
Adviser, at its discretion, may revise or discontinue the voluntary fee waivers
and expense reimbursements at any time. For the six months ended April 30, 1997,
the Investment Adviser waived fees and/or reimbursed expenses with respect to
the Funds in the following amounts:
FEES WAIVED BY
FUND INVESTMENT ADVISER
- ------- ----------------------
Money Market Fund............... $ 409,851
Government Fund................. 92,224
EXPENSES REIMBURSED BY
FUND INVESTMENT ADVISER
----- -------------------
Tax-Exempt Fund................. $ 13,478
U.S. Treasury Fund.............. 27,547
Connecticut Municipal
Money Market Fund............. 25,985
Massachusetts Municipal
Money Market Fund............. 21,612
5. CAPITAL CONTRIBUTIONS
During the period June 20, 1994 through July 6, 1994, the Investment Adviser
voluntarily contributed capital to the Money Market Fund, Government Fund and
U.S. Treasury Fund in the amounts of approximately $1.6 million, $2.3 million
and $1.0 million, respectively. These amounts were contributed to offset losses
realized on the sale of certain securities held by the Funds. The Investment
Adviser received no shares of beneficial interest or other consideration in
exchange for these contributions which maintained the net asset value of each
Fund at approximately $1.00 per share.
6. SHARES OF BENEFICIAL INTEREST
The Trust's Declaration of Trust authorizes the Trustees to issue an
unlimited number of shares of beneficial interest in the Funds, each with a par
value of $0.001. The Trust's shares are classified into twenty-four classes of
shares, each consisting of one or more series including: Class A Shares (Retail
A Shares), Class A - Special Series 1 Shares (Trust Shares) and Class A -
Special Series 2 Shares (Retail B Shares) - Money Market Fund; Class B Shares
(Retail A Shares) and Class B - Special Series 1 Shares (Trust Shares)
Government Fund; Class E Shares (Retail A Shares) and Class E - Special Series 1
Shares (Trust Shares) - Tax-Exempt Fund; Class F Shares (Retail A Shares) and
Class F - Special Series 1 Shares (Trust Shares) - U.S. Treasury Fund; Class V
Shares - Connecticut Municipal Money Market Fund; and Class W Shares -
Massachusetts Municipal Money Market Fund.
Each share represents an equal proportionate interest in the respective
Fund, bears the same fees and expenses (except that Retail A Shares each bear
the expense of payments under the Services Plan, Retail B Shares bear the
expense of payments under the 12b-1 Plan and Retail A Shares, Retail B Shares
and Trust Shares each bear series specific transfer agent charges) and are
entitled to such dividends and distributions of income earned as are declared at
the discretion of the Trust's Board of Trustees.
Prior to November 1, 1994, the Money Market, Government, Tax Exempt and U.S.
Treasury Funds each offered a single series of shares. As of such date, the
existing series of shares of each such Fund was designated as Retail A Shares
and each such Fund began issuing a second series of shares designated as Trust
Shares. At such time, certain eligible holders of Retail A Shares of such Funds
exchanged their shares for Trust Shares of the same Funds. Prior to December 4,
1995, the Predecessor Connecticut Municipal Money Market Fund offered two series
of shares, Investment Shares and Trust Shares. The shareholders of the
predecessor fund exchanged shares of each series for shares in the Galaxy
Connecticut Municipal Money Market Fund. The Predecessor Massachusetts Municipal
Money Market Fund sold shares without class designation.
Shareholders are entitled to one vote for each full share held and will vote
in the aggregate and not by class or series, except as otherwise expressly
required by law or when the Board of Trustees determines that the matter to be
voted on affects only the interests of shareholders of a particular class or
series.
7. CONCENTRATION OF CREDIT
The Connecticut Municipal Money Market and Massachusetts Municipal Money
Market Funds invest primarily in debt obligations issued by the State of
Connecticut and the Commonwealth of Massachusetts, respectively, and their
respective political subdivisions, agencies and public authorities to obtain
funds for various public purposes. The Funds are more susceptible to economic
and political factors adversely affecting issuers of each respective state's
specific municipal securities than are municipal funds that are not concentrated
in these issuers to the same extent.
8. FEDERAL TAX INFORMATION
At October 31, 1996, the following Funds had capital loss carryforwards:
FUND AMOUNT EXPIRATION
- ----- ---------- ----------
Money Market Fund....... $ 1,304,872 2002
5,181 2003
43,235 2004
Government Fund......... 872,504 2002
Tax-Exempt Fund......... 120,301 2002
3,772 2003
7,498 2004
U.S. Treasury Fund...... 786,774 2002
Connecticut Municipal
Money Market Fund..... 6,619 2003
817 2004
Massachusetts Municipal
Money Market Fund..... 133 2002
31 2003
12,416 2004
9. ACQUISITION OF THE SHAWMUT FUNDS
At a meeting held on June 12, 1995, the Board of Trustees of the Trust
approved an Agreement and Plan of Reorganization (the "Agreement") for the
acquisition of The Shawmut Funds ("Shawmut") by the Trust. Pursuant to the
Agreement, all of the assets and liabilities of the Shawmut Prime Money Market
Fund were transferred to the Galaxy Money Market Fund in exchange for shares of
the Galaxy Money Market Fund. In addition, all of the assets and liabilities of
the Shawmut Connecticut Municipal Money Market Fund and the Shawmut
Massachusetts Municipal Money Market Fund were transferred to the Galaxy
Connecticut Municipal Money Market Fund and the Galaxy Massachusetts Municipal
Money Market Fund, respectively, new portfolios of the Trust, in exchange for
shares of the Galaxy Connecticut Municipal Money Market Fund and the Galaxy
Massachusetts Municipal Money Market Fund, respectively. Accordingly, the net
assets attributable to Investment Shares and Trust Shares of the Shawmut Prime
Money Market Fund were exchanged for 267,079,142 Retail A Shares and 511,462,955
Trust Shares, respectively, of the Galaxy Money Market Fund, the net assets
attributable to Investment Shares and Trust Shares of the Shawmut Connecticut
Municipal Money Market Fund were exchanged for 99,969,877 shares of the Galaxy
Connecticut Municipal Money Market Fund and the net assets of the Shawmut
Massachusetts Municipal Money Market Fund were exchanged for 39,189,008 shares
of the Galaxy Massachusetts Municipal Money Market Fund. In related
transactions, the assets and liabilities of other Shawmut portfolios were
transferred to corresponding Galaxy portfolios in exchange for shares in such
Galaxy portfolios. The reorganization, which qualified as a tax-free
reorganization for Federal income tax purposes, was completed on December 4,
1995 following the approval of the reorganization by Shawmut shareholders.
Certain share registration fees incurred in connection with the reorganization
were borne by the Trust. The following is a summary of the Net Assets, Shares
Outstanding and Net Asset Values per share associated with the transaction:
<TABLE>
<CAPTION>
Before Acquisition After Acquisition
----------------------------------------------------------- ----------------------------
Galaxy Galaxy Shawmut Shawmut Galaxy Galaxy
Money Market Money Market Prime Money Prime Money Money Market Money Market
Fund Fund Market Fund Market Fund Fund Fund
Retail A Shares Trust Shares Investment Shares Trust Shares Retail A Shares Trust Shares
--------------- ------------ ----------------- ------------ --------------- ------------
<S> <C> <C> <C> <C> <C> <C>
Net Assets................. $614,802,390 $318,554,689 $267,075,370 $511,455,645 $881,877,760 $830,010,334
Shares outstanding......... 615,427,194 319,003,229 267,079,142 511,462,955 882,506,336 830,466,184
Net Asset Value, per share. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
</TABLE>
<TABLE>
<CAPTION>
Before Acquisition After Acquisition
--------------------------------------------------------------------- --------------------
Galaxy Shawmut Shawmut Galaxy
Connecticut Municipal Connecticut Municipal Connecticut Municipal Connecticut Municipal
Money Market Fund Money Market Fund Money Market Fund Money Market Fund
Shares Investment Shares Trust Shares Shares
--------------------- --------------------- --------------------- ---------------------
<S> <C> <C> <C> <C>
Net Assets................. $ 10.00 $ 67,149,096 $ 32,820,781 $ 99,969,887
Shares outstanding......... 10.00 67,149,096 32,820,781 99,969,887
Net Asset Value, per share. $ 1.00 $ 1.00 $ 1.00 $ 1.00
<CAPTION>
Before Acquisition After Acquisition
----------------------------------------------- -----------------------
Galaxy Shawmut Galaxy
Massachusetts Municipal Massachusetts Municipal Massachusetts Municipal
Money Market Fund Money Market Fund Money Market Fund
Shares Investment Shares Shares
----------------------- ---------------------- -----------------------
<S> <C> <C> <C>
Net Assets................. $ 10.00 $ 39,189,008 $ 39,189,018
Shares outstanding....... 10.00 39,189,008 39,189,018
Net Asset Value, per share. $ 1.00 $ 1.00 $ 1.00
</TABLE>
<PAGE>
- --------------- ----------------
4400 Computer Drive BULK RATE
GALAXY Box 5108 U.S. POSTAGE
FUNDS Westborough, MA 01581-5108 PAID
- --------------- PERMIT NO. 105
N. READING, MA
----------------
FN-083 (5/97) Date of first use 6/30/97
