<PAGE>
LETTER FROM THE PRESIDENT
Dear Shareholder:
Following is Colonial Florida Tax-Exempt Fund's semiannual report for the six
months ended July 31, 1995. The Fund seeks as high a level of after-tax total
return, as is consistent with prudent risk, by pursuing current income exempt
from federal income tax, and opportunities for long-term appreciation from a
portfolio primarily invested in investment grade Florida municipal bonds. Fund
shares are also intended to be exempt from the Florida intangibles tax.
<TABLE>
FUND PERFORMANCE (2/1/95 - 7/31/95)
<CAPTION>
CLASS A CLASS B
INCEPTION 2/1/93 2/1/93
- --------------------------------------------------------
<S> <C> <C>
Distributions declared per share $0.216 $0.189
- --------------------------------------------------------
SEC yield on 7/31/95 5.31% 4.82%
- --------------------------------------------------------
Taxable-equivalent yield
on 7/31/95, based on the
maximum offering price 8.79% 7.98%
- --------------------------------------------------------
Six-month total return, assuming
reinvestment of all distributions
and no sales charge or contingent
deferred sales charge (CDSC) 5.59% 5.20%
- --------------------------------------------------------
Net asset value per share
on 7/31/95 $7.28 $7.28
- --------------------------------------------------------
</TABLE>
<TABLE>
AVERAGE ANNUAL TOTAL RETURNS AS OF 6/30/95
<CAPTION>
- ----------------------------------------------------------
CLASS A CLASS B
NAV MOP NAV W/CDSC
<S> <C> <C> <C> <C>
1 YEAR 6.84% 1.76% 6.04% 1.04%
SINCE INCEPTION 4.43% 2.34% 3.66% 2.50%
- ----------------------------------------------------------
</TABLE>
ECONOMIC/MARKET OVERVIEW
Although tax reform discussions in Washington have had a negative impact on
the municipal bond market, in other respects the economic climate was quite
favorable for these securities. One factor that had a positive influence on
performance was the relatively low supply of Florida municipal bonds. Also, the
U.S. economy has slowed during 1995. Real gross domestic product (GDP) for the
first two quarters of 1995 was 2.8% and 1.1%, respectively, down significantly
from the annualized GDP growth rate of 5.1% for the final quarter of 1994. This
translated into lower interest rates, a development that was reflected in higher
prices in the municipal bond market.
Florida's economy continues to be among the strongest in the nation. Although
growth slowed during the second quarter of 1995, following the national trend,
there has recently been a modest pickup in the state's economy. Among recent
favorable economic trends is the state's declining unemployment rate.
Unemployment for July was 5.2%, which is well below the national average of
5.7%. Also, new construction permits increased by 14% in May, the most recent
month for which figure's are available.
[PHOTO]
John A. McNeice, Jr.
President
INVESTMENT STRATEGY
The Fund remained fully invested in a diverse selection of Florida municipal
bonds. On July 31, the Fund owned 71 individual issues in 17 public sectors.
Almost 95% of the securities in the portfolio were rated investment grade, with
approximately 70% rated AAA, the highest quality rating available.
We remain cautiously optimistic about Florida's municipal bond market. While
we will continue to monitor the tax reform debate closely, we believe the
overall environment for these securities should continue to be favorable.
Sincerely,
/s/ JOHN A. MCNEICE, JR.
John A. McNeice, Jr.
President
September 13, 1995
A portion of the Fund's income may be subject to the alternative minimum tax.
The 30-day SEC yield on July 31, 1995, of 5.31% for Class A shares and 4.82%
for Class B shares reflects the portfolio's earning power, net of expenses, and
does not include changes in Fund price.
If the adviser had not borne certain Fund expenses, total returns would have
been lower and the yield for Class A shares would have been 4.67%, and the yield
for Class B shares would have been 4.15%. Taxable-equivalent yields are based on
the maximum 39.6% federal income tax rate.
Past performance cannot predict future results. Return and value of an
investment will vary, resulting in a gain or loss on sale. All results shown
assume reinvestment of distributions. Net asset value (NAV) return does not
include sales charges or CDSC. Maximum offering price (MOP) return includes the
maximum sales charge of 4.75%. The CDSC returns reflect charges of: one year,
5.00%; since inception, 3.00%.
Performance for different share classes will vary based on differences in
sales charges and fees associated with each class.
<PAGE>
INVESTMENT PORTFOLIO (UNAUDITED, IN THOUSANDS) JULY 31, 1995
<TABLE>
<CAPTION>
MUNICIPAL BONDS - 100.7% PAR VALUE
- ---------------------------------------------------------------------------------
<S> <C> <C>
EDUCATION - 4.9%
Dade County Educational Facilities
Authority,
5.000% 10/01/16(a) ................ $1,500 $1,324
North Miami, Johnson & Wales
University Project, Series 1993 B,
6.100% 04/01/13 ................... 1,000 937
State Board of Education,
Series D,
5.250% 06/01/23 ................... 1,000 895
------
3,156
- ---------------------------------------------------------------------------------
GENERAL OBLIGATIONS - 1.9%
State Board of Education:
Series 1987 A,
5.000% 06/01/17 ................... 150 133
Series A,
7.250% 06/01/23 ................... 1,000 1,106
------
1,239
- ---------------------------------------------------------------------------------
HEALTH - 8.8%
HOSPITALS - 7.1%
Brevard County Health Facilities
Authority, Holmes Regional Medical
Center,
5.750% 10/01/13 ................... 1,000 949
Dade County Health Facility
Authority, Baptist Hospital,
5.250% 05/15/21 ................... 750 669
Orange County Health Facilities
Authority, Adventist Health Systems,
5.250% 11/15/20 ................... 1,000 898
Palm Beach County Health
Facilities Authority,
Good Samaritan Health System,
6.300% 10/01/22 ................... 2,000 2,000
------
4,516
------
NURSING HOMES - 1.7%
Broward County,
Beverly Enterprises,
9.800% 11/01/10 ................... 120 134
Collier County Industrial
Development Authority, Beverly
Enterprises, Series 1991,
10.750% 03/01/03 ................... 185 217
Escambia County,
Beverly Enterprises, Series 1985-I,
9.800% 06/01/11 ................... 120 133
Leon County, Beverly Enterprises,
Series 1985,
9.800% 06/01/11 ................... 90 101
Palm Beach County:
Beverly Enterprises, Series 1984-1,
10.000% 06/01/11 ................... 195 219
Hillcrest Manor Project,
10.250% 12/01/16 ................... 200 209
Volusia County Industrial
Development Authority, Beverly
Enterprises, Series 1987,
9.800% 12/01/07 ................... 60 63
------
1,076
- ---------------------------------------------------------------------------------
HOUSING - 5.4%
MULTI-FAMILY - 1.6%
Clearwater,
Hampton Apartments,
8.250% 05/01/24 ................... 575 598
Hialeah Housing Authority,
Series 1991,
9.500% 11/01/21 ................... 200 206
State Housing Finance Agency,
Windsong Apartments, Series 1993-C,
9.250% 01/01/19 ................... 200 200
------
1,004
------
SINGLE FAMILY - 3.8%
Broward County Housing Finance Authority,
Single Family Mortgage,
6.700% 02/01/28(a) ................ 2,000 1,997
Duval County Housing Finance
Authority, Single Family Housing,
Series 1988-A,
7.875% 09/01/09 ................... 385 409
------
2,406
- ---------------------------------------------------------------------------------
POLLUTION CONTROL REVENUE - 2.8%
Escambia County,
Champion International, Series 1993,
5.875% 06/01/22 ................... 1,000 936
State Municipal Power Agency,
Series 1993,
5.100% 10/01/25(a) ................ 1,000 874
------
1,810
- ---------------------------------------------------------------------------------
PUBLIC FACILITIES & IMPROVEMENT - 9.0%
Hernando County,
Series 1993,
5.750% 02/01/14 ................... 250 245
Jacksonville Port Authority,
Series 1993,
5.250% 10/01/17 ................... 2,000 1,800
Orange County, Series 1993-B,
5.375% 01/01/24 ................... 2,000 1,845
</TABLE>
See notes to investment portfolio.
2
<PAGE>
INVESTMENT PORTFOLIO - CONTINUED
<TABLE>
<CAPTION>
MUNICIPAL BONDS - CONT. PAR VALUE
- ---------------------------------------------------------------------------------
<S> <C> <C>
PUBLIC FACILITIES & IMPROVEMENT - CONT ...............
Palm Beach County Criminal Justice
Facility, Series 1993,
5.375% 06/01/11 ..................... $1,250 $1,203
State Department of Correction,
Okeechobee Correctional Facility,
6.250% 03/01/15 ..................... 625 644
------
5,737
- ---------------------------------------------------------------------------------
PUBLIC INFRASTRUCTURE - 12.0%
AIRPORT - 3.4%
Greater Orlando Aviation Authority,
Orlando Airport Facility,
Series 1992-A,
6.500% 10/01/12 ..................... 500 526
Hillsborough County Aviation
Authority, Tampa International
Airport, Series D,
5.375% 10/01/23 ..................... 1,250 1,131
Lee County,
Series 1992-A,
5.500% 10/01/10 ..................... 500 490
------
2,147
------
TURNPIKE/TOLL ROAD/BRIDGE - 8.6%
Orlando & Orange County Expressway
Authority, Series 1993-A,
5.250% 07/01/19 ..................... 2,000 1,810
State Turnpike Authority,
Department of Transportation:
Series 1993 A,
5.000% 07/01/19(a) .................. 2,000 1,752
Series A,
5.500% 07/01/21(b) .................. 1,500 1,401
State Turnpike Authority,
6.350% 07/01/22(a) .................. 530 547
------
5,510
- ---------------------------------------------------------------------------------
REFUNDED/ESCROW/SPECIAL OBLIGATIONS (C) - 11.8%
Altamonte Springs Health Facilities,
Series C-1,
5.700% 10/01/12(a) .................. 1,200 1,212
Jacksonville Electric Authority,
Bulk Power Supply System,
Scherer 4, Series 1991-A,
6.750% 10/01/16 ..................... 1,000 1,124
Orange County Health Facilities
Authority, Series 3,
5.700% 10/01/12 ..................... 2,910 2,954
Pasco County Health Facilities
Authority, Series 2,
5.700% 10/01/12 ..................... 1,915 1,934
State Turnpike Authority,
Series 1992-A,
6.350% 07/01/22 ..................... 325 361
------
7,585
- ---------------------------------------------------------------------------------
SALES & EXCISE TAX - 2.3%
Fl Tampa Bay Arena Project,
5.750% 10/01/25 ..................... 1,500 1,468
- ---------------------------------------------------------------------------------
SERVICES - 3.9%
AMUSEMENT & RECREATION
Jacksonville,
Gator Bowl Project,
5.500% 10/01/19 ..................... 2,625 2,481
- ---------------------------------------------------------------------------------
TAX ALLOCATION - 6.7%
Jacksonville, Series 1993:
(d) 10/01/09 ..................... 525 230
5.750% 10/01/20 ..................... 200 191
Lake County,
NRG Recovery Group, Series 1993-A,
5.950% 10/01/13 ..................... 1,050 969
Orange County Tourist Development,
Series 1994-B,
5.750% 10/01/19 ..................... 2,500 2,419
Pasco County, Series 1992,
5.750% 08/01/13 ..................... 500 491
------
4,300
- ---------------------------------------------------------------------------------
UTILITY - 19.1%
CO-GENERATION - 0.8%
Martin County Industrial
Development Authority, Indiantown
Cogeneration Project,
7.875% 12/15/25 ..................... 500 543
------
JOINT POWER AUTHORITY - 1.4%
State Municipal Power Agency,
St. Lucie Project,
5.250% 10/01/21(a)(e) ............... 1,000 906
------
MUNICIPAL ELECTRIC - 16.9%
Alachua Utilities, Series 1993,
5.750% 04/01/20(e) .................. 1,000 966
Fort Pierce,
Utilities Authority Revenues,
5.250% 10/01/16(a) .................. 1,500 1,378
</TABLE>
See notes to investment portfolio.
3
<PAGE>
INVESTMENT PORTFOLIO - CONTINUED
<TABLE>
<CAPTION>
MUNICIPAL BONDS - CONT. PAR VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
UTILITY - CONT
MUNICIPAL ELECTRIC - CONT.
Jacksonville Electric Authority,
Bulk Power Supply System,
Scherer 4, Series 1993-A,
5.250% 10/01/21 ................. $ 1,000 $ 899
Jacksonville Electric Authority,
Series 1993-A:
5.250% 10/01/28 ................. 2,000 1,795
5.750% 10/01/12 ................. 150 147
Orlando Utilities Commission:
5.000% 10/01/23 ................. 1,700 1,469
6.750% 10/01/17 ................. 1,000 1,115
Series 1992-A,
6.000% 10/01/20 ................. 150 150
Series 1993-B,
5.250% 10/01/23 ................. 2,000 1,795
Sebastian, Series 1993, Utility System,
5.450% 10/01/23 ................. 1,155 1,080
-------
10,794
- --------------------------------------------------------------------------------
WATER & SEWER - 12.1%
Indian River, Sewer Improvements,
Series 1993 A,
5.500% 09/01/11 ................. 965 942
Key West Sewer System, Series 1993,
5.700% 10/01/20 ................. 500 483
Lakeland, Wastewater Improvements,
5.500% 10/01/16 ................. 755 724
Ocoee, Series 1993,
5.750% 10/01/17 ................. 500 488
Port Orange, Series 1993,
5.250% 10/01/21 ................. 1,000 910
Reedy Creek Improvement District,
Series-1,
5.000% 10/01/19 ................. 1,000 871
Seacoast Utility Authority,
Series 1989 A,
5.500% 03/01/15 ................. 1,900 1,826
Seminole County,
6.000% 10/01/19 ................. 1,500 1,513
-------
7,757
- --------------------------------------------------------------------------------
Total investments (cost $63,293)(f) 64,435
- --------------------------------------------------------------------------------
SHORT-TERM OBLIGATIONS - 3.4%
- --------------------------------------------------------------------------------
VARIABLE RATE DEMAND NOTES (g)
Boulder Community Hosipital,
3.800% 10/01/14 ................. 200 200
City of Green River,
3.900% 06/01/99 ................. 300 300
Palm Beach County Water & Sewer
Systems,
3.850% 10/01/11 ................. 200 200
Pinellas County Health Facilities
Authority,
3.850% 12/01/15 ................. 1,500 1,500
- --------------------------------------------------------------------------------
Total short-term obligations 2,200
- --------------------------------------------------------------------------------
OTHER ASSETS & LIABILITIES, NET - (4.1)% (2,625)
- --------------------------------------------------------------------------------
NET ASSETS - 100% $64,010
- --------------------------------------------------------------------------------
<FN>
Notes to investment portfolio:
(a) These securities, or a portion thereof, with a total market value of $8,396
are being used to collateralize open futures contracts.
(b) This security, or a portion thereof, has been purchased on a delayed
delivery basis for settlement at a future date beyond the customary
settlement time.
(c) The Fund has been informed that each issuer has placed direct obligations of
the U.S. Government in an irrevocable trust, solely for the payment of the
interest and principal.
(d) Zero coupon bond.
(e) These securities, or a portion thereof, with a market value of $1,070 are
being used to collateralize the delayed delivery purchase indicated in note
(b) above.
(f) Cost for federal income tax purposes is the same.
(g) Variable rate demand notes are considered short-term obligations. Interest
rates change periodically on specified dates. These securities are payable
on demand and are secured by either letters of credit or other credit
support agreements from banks. The rates listed are as of July 31, 1995.
</TABLE>
<TABLE>
Short futures contracts open at
July 31, 1995:
<CAPTION>
Par value
covered Unrealized
by Expiration depreciation
Type contracts month at 7/31/95
- ---------------------------------------------------------------------------------
<S> <C> <C> <C>
Treasury bond $6,600 September $1
- ---------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
4
<PAGE>
FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
STATEMENT OF ASSETS & LIABILITIES (UNAUDITED)
July 31, 1995
(in thousands except for per share amounts and footnote)
- ---------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Investments at value (cost $63,293)................................... $ 64,435
Short-term investments ............................................... 2,200
------------
66,635
Receivable for:
Interest............................................. $ 1,142
Fund shares sold..................................... 82
Investments sold..................................... 20
Reimbursement due from Adviser....................... 6
Deferred organization expenses.......................... 24
Other................................................... 40 1,314
------- ------------
Total assets................................................. 67,949
LIABILITIES
Payable for:
Investments purchased................................ 3,487
Distributions........................................ 294
Fund shares repurchased.............................. 109
Variation margin on futures.......................... 35
Accrued:
Deferred Trustees fees............................... 1
Other................................................ 13
-------
Total liabilities............................................ 3,939
------------
NET ASSETS ........................................................... $ 64,010
------------
Net asset value & redemption price per share -
Class A ($30,612/4,205)........................................... $7.28
------------
Maximum offering price per share -
Class A ($7.28/0.9525)............................................. $7.64(a)
------------
Net asset value & offering price per share -
Class B ($33,398/4,588)........................................... $7.28(b)
------------
COMPOSITION OF NET ASSETS
Capital paid in.................................................... $ 66,752
Undistributed net investment income................................ 103
Accumulated net realized loss...................................... (3,986)
Net unrealized appreciation (depreciation) on:
Investments..................................................... 1,142
Open futures contracts.......................................... (1)
------------
$ 64,010
------------
</TABLE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS (UNAUDITED)
Six months ended July 31, 1995
(in thousands)
- ---------------------------------------------------------------------------------------
<S> <C> <C>
Investment income
Interest.............................................................. $ 1,856
EXPENSES
Management fee.......................................... $ 167
Service fee ............................................ 41
Distribution fee - Class B.............................. 123
Transfer agent.......................................... 51
Bookkeeping fee......................................... 16
Trustees fees........................................... 6
Custodian fee........................................... 3
Audit fee............................................... 5
Legal fee............................................... 3
Registration fees....................................... 5
Reports to shareholders................................. 2
Amortization of deferred
organization expenses................................. 5
Other................................................... 5
-------
432
Fees and expenses waived
or borne by the adviser............................... (205) 227
------- ------------
Net investment income......................................... 1,629
------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON PORTFOLIO POSITIONS
Net realized gain (loss) on:
Investments........................................... (366)
Closed futures contracts.............................. (1,999)
-------
Net realized loss................................................. (2,365)
------------
Net unrealized appreciation
during the period on:
Investments........................................... 3,416
Open futures contracts................................ 438
------
Net unrealized appreciation....................................... 3,854
------------
Net gain...................................................... 1,489
------------
Net increase in net assets from
operations.......................................................... $ 3,118
------------
<FN>
(a) On sales of $50,000 or more the offering price is reduced.
(b) Redemption price per share is equal to net asset value less
any applicable contingent deferred sales charge.
</TABLE>
See notes to financial statements.
5
<PAGE>
FINANCIAL STATEMENTS - CONTINUED
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
(in thousands)
- ----------------------------------------------------------------------------------------------
(unaudited)
Six months
ended Year ended
July 31 January 31
----------- ----------
INCREASE (DECREASE) IN NET ASSETS 1995 1995
----------- ----------
<S> <C> <C>
Operations
Net investment income ................................. $ 1,629 $ 3,075
Net realized loss ..................................... (2,365) (1,324)
Net unrealized appreciation (depreciation) ............ 3,854 (4,781)
-------- --------
Net increase (decrease) from operations ........ 3,118 (3,030)
Distributions
From net investment income - Class A .................. (856) (1,413)
From net investment income - Class B .................. (844) (1,574)
-------- --------
1,418 (6,017)
-------- --------
Fund share transactions
Receipts for shares sold - Class A .................... 5,750 14,281
Value of distributions reinvested - Class A ........... 301 540
Cost of shares repurchased - Class A .................. (3,583) (8,635)
-------- --------
2,468 6,186
-------- --------
Receipts for shares sold - Class B .................... 3,940 8,694
Value of distributions reinvested - Class B ........... 294 579
Cost of shares repurchased - Class B .................. (2,724) (6,143)
-------- --------
1,510 3,130
-------- --------
Net increase from Fund share transactions ...... 3,978 9,316
-------- --------
Total increase .......................... 5,396 3,299
Net Assets
Beginning of period ................................... 58,614 55,315
-------- --------
End of period (including undistributed net investment
income of $103 and $169, respectively) .............. $ 64,010 $ 58,614
-------- --------
NUMBER OF FUND SHARES
Sold - Class A ........................................ 783 2,002
Issued for distributions reinvested - Class A ......... 41 75
Repurchased - Class A ................................. (490) (1,209)
-------- --------
334 868
-------- --------
Sold - Class B ........................................ 537 1,192
Issued for distributions reinvested - Class B ......... 40 81
Repurchased - Class B ................................. (371) (868)
-------- --------
206 405
-------- --------
</TABLE>
See notes to financial statements.
6
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1. INTERIM FINANCIAL STATEMENTS
In the opinion of management of Colonial Florida Tax-Exempt Fund (the
Fund), a series of Colonial Trust V, the accompanying financial statements
contain all normal and recurring adjustments necessary for the fair presentation
of the financial position of the Fund at July 31, 1995, and the results of its
operations, the changes in its net assets, and the financial highlights for the
six months then ended.
- --------------------------------------------------------------------------------
NOTE 2. ACCOUNTING POLICIES
The Fund is a non-diversified portfolio of a Massachusetts business trust,
registered under the Investment Company Act of 1940, as amended, as an open-end,
management investment company. The Fund may issue an unlimited number of shares.
The Fund offers Class A shares sold with a front-end sales charge and Class B
shares which are subject to an annual distribution fee and a contingent deferred
sales charge. Class B shares will convert to Class A shares when they have been
outstanding approximately eight years. The following significant accounting
policies are consistently followed by the Fund in the preparation of its
financial statements and conform to generally accepted accounting principles.
- --------------------------------------------------------------------------------
SECURITY VALUATION AND TRANSACTIONS
Debt securities generally are valued by a pricing service based upon market
transactions for normal, institutional-size trading units of similar securities.
When management deems it appropriate, an over-the-counter or exchange bid
quotation is used.
Futures contracts are valued based on the difference between the last sale
price and the opening price of the contract.
Options are valued at the last reported sale price, or in the absence of a
sale, the mean between the last quoted bid and asking price.
Short-term obligations with a maturity of 60 days or less are valued at
amortized cost.
Portfolio positions which cannot be valued as set forth above are valued at
fair value under procedures approved by the Trustees.
Security transactions are accounted for on the date the securities are
purchased or sold.
Cost is determined and gains and losses are based upon the specific
identification method for both financial statement and federal income tax
purposes.
The Fund may trade securities on other than normal settlement terms. This
may increase the risk if the other party to the transaction fails to deliver and
causes the Fund to subsequently invest at less advantageous prices.
- --------------------------------------------------------------------------------
DETERMINATION OF CLASS NET ASSET VALUES AND FINANCIAL HIGHLIGHTS
All income, expenses (other than the Class B distribution fee), realized
and unrealized gains (losses) are allocated to each class proportionately on a
daily basis for purposes of determining the net asset value of each class.
Class B per share data and ratios are calculated by adjusting the expense
and net investment income per share data and ratios for the Fund for the entire
period by the distribution fee applicable to Class B shares only.
- --------------------------------------------------------------------------------
FEDERAL INCOME TAXES
Consistent with the Fund's policy to qualify as a regulated investment
company and to distribute all of its taxable and tax-exempt income, no federal
income tax has been accrued.
- --------------------------------------------------------------------------------
DEFERRED ORGANIZATION EXPENSES
The Fund incurred $47,925 of expenses in connection with its organization,
initial registration with the Securities and Exchange Commission and with
various states, and the initial public offering of its shares. These expenses
were deferred and are being amortized on a straight-line basis over five years.
- --------------------------------------------------------------------------------
INTEREST INCOME, DEBT DISCOUNT AND PREMIUM
Interest income is recorded on the accrual basis. Original issue discount
is accreted to interest income over the life of a security
7
<PAGE>
NOTES TO FINANCIAL STATEMENTS - CONTINUED
with a corresponding increase in the cost basis; market discount is not
accreted. Premium is amortized against interest income with a corresponding
decrease in the cost basis.
- --------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
The Fund declares and records distributions daily and pays monthly.
The amount and character of income and gains to be distributed are
determined in accordance with income tax regulations which may differ from
generally accepted accounting principles.
- --------------------------------------------------------------------------------
<TABLE>
NOTE 3. FEES AND COMPENSATION PAID TO AFFILIATES
MANAGEMENT FEE
Colonial Management Associates, Inc. (the Adviser) is the investment
adviser of the Fund and furnishes accounting and other services and office
facilities for a monthly fee based on each Fund's pro-rata portion of the
combined average net assets of Trust V as follows:
<CAPTION>
Average Net Assets Annual Fee Rate
- ---------------------- -----------------
<S> <C>
First $1 billion 0.55%
Next $1 billion 0.50%
Over $2 billion 0.45%
- --------------------------------------------------------------------------------
</TABLE>
BOOKKEEPING FEE
The Adviser provides bookkeeping and pricing services for $27,000 per year
plus 0.035% of the Fund's average net assets over $50 million.
- --------------------------------------------------------------------------------
TRANSFER AGENT
Colonial Investors Service Center, Inc. (the Transfer Agent), an affiliate
of the Adviser, provides shareholder services for a monthly fee equal to 0.14%
annually of the Fund's average net assets and receives a reimbursement for
certain out of pocket expenses.
- --------------------------------------------------------------------------------
UNDERWRITING DISCOUNTS, SERVICE AND
DISTRIBUTION FEES
Colonial Investment Services, Inc. (the Distributor), an affiliate of the
Adviser, is the Fund's principal underwriter. During the six months ended July
31, 1995, the Distributor retained net underwriting discounts of $19,165 on
sales of the Fund's Class A shares and received contingent deferred sales
charges (CDSC) of $58,430 on Class B share redemptions.
<TABLE>
The Fund has adopted a 12b-1 plan which requires the payment of a
distribution fee to the Distributor equal to 0.75% annually of the average net
assets attributable to Class B shares. The plan also requires the payment of a
service fee to the Distributor as follows:
<CAPTION>
Valuation of shares Annual
outstanding on the 20th of Fee
each month which were issued Rate
- ------------------------------------------------------------------------------- ------
<S> <C>
Prior to November 30, 1994..................................................... 0.10%
On or after December 1, 1994................................................... 0.25%
</TABLE>
The CDSC and the fees received from the 12b-1 plan are used principally as
repayment to the Distributor for amounts paid by the Distributor to dealers who
sold such shares.
- --------------------------------------------------------------------------------
EXPENSE LIMITS
The Adviser has agreed, until further notice to waive fees and bear certain
Fund expenses to the extent that total expenses (exclusive of service and
distribution fees, brokerage commissions, interest, taxes, and extraordinary
expenses, if any) exceed 0.20% annually of the Fund's average net assets.
Effective August 1, 1995, and until further notice, the expense limit
changed to 0.40% of the Fund's average net assets.
- --------------------------------------------------------------------------------
OTHER
The Fund pays no compensation to its officers, all of whom are employees of
the Adviser.
The Fund's Trustees may participate in a deferred compensation plan which
may be terminated at any time. Obligations of the
8
<PAGE>
NOTES TO FINANCIAL STATEMENTS - CONTINUED
plan will be paid solely out of the Fund's assets.
- --------------------------------------------------------------------------------
NOTE 4. PORTFOLIO INFORMATION
During the six months ended July 31, 1995, purchases and sales of
investments, other than short-term obligations, were $13,217,219 and
$10,241,366, respectively.
<TABLE>
Unrealized appreciation (depreciation) at July 31, 1995, based on cost of
investments for both financial statement and federal income tax purposes was:
<S> <C>
Gross unrealized appreciation.............. $1,886,992
Gross unrealized depreciation.............. (744,635)
----------
Net unrealized appreciation............. $1,142,357
----------
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
CAPITAL LOSS CARRYFORWARDS
At January 31, 1995, capital loss carryforwards available (to the extent
provided in regulations) to offset future realized gains were approximately as
follows:
<CAPTION>
Year of Capital loss
expiration carryforward
---------------- ------------
<S> <C>
2002........ $ 22,000
2003........ 557,000
--------
$579,000
--------
</TABLE>
Expired capital loss carryforwards, if any, are recorded as a reduction of
capital paid in.
To the extent loss carryforwards are used to offset any future realized
gains, it is unlikely that such gains would be distributed since they may be
taxable to shareholders as ordinary income.
- --------------------------------------------------------------------------------
OTHER
There are certain risks arising from geographic concentration in any state.
Certain revenue or tax related events in a state may impair the ability of
certain issuers of municipal securities to pay principal and interest on their
obligations.
The Fund may focus its investments in certain industries, subjecting it to
greater risk than a fund that is more diversified.
The Fund sells municipal and Treasury bond futures contracts to manage
overall portfolio interest rate exposure and not for trading purposes. The use
of futures contracts involves certain risks, which include (1) imperfect
correlation between the price movement of the contracts and the underlying
securities, (2) inability to close out positions due to different trading hours,
or the temporary absence of a liquid market, for either the contract or the
underlying securities, or (3) an inaccurate prediction by the Adviser of the
future direction of interest rates. Any of these risks may involve amounts
exceeding the initial or variation margin recorded in the Fund's Statement of
Assets and Liabilities at any given time.
- --------------------------------------------------------------------------------
NOTE 5. RESULTS OF SPECIAL SHAREHOLDERS
MEETING
On February 15, 1995, a special meeting of shareholders was held and a new
Management Agreement between the Trust and Colonial Management Associates, Inc.
was approved that became effective upon the completion of the merger of The
Colonial Group, Inc. and Apple Merger Corporation, a subsidiary of Liberty
Financial Companies, Inc. on March 24, 1995. Of the shares of beneficial
interest outstanding on December 9, 1994, 5,602,973 voted for the new Management
Agreement, 234,781 voted against and 379,355 abstained. Of the shares of
beneficial interest outstanding that abstained, 5,208 represented broker
non-votes.
- --------------------------------------------------------------------------------
9
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
Selected data for a share of each class outstanding throughout each period are
as follows:
- --------------------------------------------------------------------------------
<CAPTION>
(UNAUDITED)
SIX MONTHS ENDED
JULY 31 YEAR ENDED JANUARY 31
------------------------ ----------------------------------------------
1995 1995 1994 (b)
------------------------ --------------------- ------------------
Class A Class B Class A Class B Class A Class B
------- ------- ------- ------- ------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value - Beginning of period ...... $ 7.100 $ 7.100 $ 7.930 $ 7.930 $ 7.500 $ 7.500
------- ------- ------- ------- ------- --------
Income (loss) from investment operations:
Net investment income (a) ................ 0.207 0.180 0.423 0.369 0.434 0.378
Net realized and unrealized
gain (loss) on investments ............. 0.189 0.189 (0.839) (0.839) 0.420 0.420
------- ------- ------- ------- ------- --------
Total from investment operations ...... 0.396 0.369 (0.416) (0.470) 0.854 0.798
------- ------- ------- ------- ------- --------
Less distributions declared to shareholders:
From net investment income ............... (0.216) (0.189) (0.414) (0.360) (0.424) (0.368)
------- ------- ------- ------- ------- --------
Net asset value - End of period ............ $ 7.280 $ 7.280 $ 7.100 $ 7.100 $ 7.930 $ 7.930
------- ------- ------- ------- ------- --------
Total return (c)(d) ........................ 5.59%(e) 5.20%(e) (5.11)% (5.83)% 11.66% 10.85%
------- ------- ------- ------- ------- --------
Ratios to average net assets
Expenses ................................. 0.33%(f)(g) 1.08%(f)(g) 0.22%(f) 0.97%(f) 0.05% 0.80%
Net investment income .................... 5.65%(g) 4.90%(g) 5.92% 5.17% 5.40% 4.65%
Fees waived by the Adviser ............... 0.66%(g) 0.66%(g) 0.73% 0.73% 0.88% 0.88%
Portfolio turnover ......................... 34%(g) 34%(g) 45% 45% 19% 19%
Net assets at end of period (000) .......... $30,612 $33,398 $27,498 $31,116 $23,802 $ 31,513
(a) Net of fees and expenses waived or
borne by the Adviser which
amounted to ........................... $ 0.024 $ 0.024 $ 0.052 $ 0.052 $ 0.071 $ 0.071
<FN>
(b) The Fund commenced investment operations on February 1, 1993.
(c) Total return at net asset value assuming all distributions reinvested and
no initial sales charge or contingent deferred sales charge.
(d) Had the Adviser not waived or reimbursed a portion of expenses, total
return would have been reduced.
(e) Not annualized.
(f) Includes service fee of 0.13% (annualized) for the period ended July 31,
1995, and 0.02% (not annualized) for the year ended January 31, 1995,
respectively.
(g) Annualized.
</TABLE>
10
<PAGE>
- --------------------------------------------------------------------------------
ABOUT OUR COVER...
[GRAPHIC]
The symbol on the cover of this Report represents the Fund's primary investment
focus on municipal bonds.
- --------------------------------------------------------------------------------
Colonial Florida Tax-Exempt Fund mails one shareholder report to each
shareholder address. If you would like more than one report, please call our
Literature Department at 1-800-248-2828 and additional reports will be sent to
you.
SHAREHOLDER SERVICES AND TRANSFER AGENT
Colonial Investors Service Center, Inc.
P.O. Box 1722
Boston, MA 02105-1722
1-800-345-6611
This report has been prepared for shareholders of Colonial Florida Tax-Exempt
Fund. This report may also be used as sales literature when preceded or
accompanied by the current prospectus which provides details of sales charges,
investment objectives, and operating policies of the Fund.
11
<PAGE>
[COLONIAL MUTUAL FUNDS LOGO]
[GRAPHIC]
COLONIAL
FLORIDA
TAX-EXEMPT FUND
================================================================================
SEMIANNUAL REPORT
JULY 31, 1995
[LOGO] COLONIAL
MUTUAL FUNDS
[LOGO] Printed on recycled paper
COLONIAL INVESTMENT SERVICES, INC. (C)1995
One Financial Center, Boston, Massachusetts 02111-2621
FL-03/198B-0795
