<PAGE>
[COLONIAL LOGO]
COLONIAL
NEW YORK TAX-EXEMPT FUND
[PICTURE]
SEMIANNUAL REPORT
JULY 31, 1996
NOT FDIC- MAY LOSE VALUE
INSURED NO BANK GUARANTEE
<PAGE>
COLONIAL NEW YORK TAX-EXEMPT FUND HIGHLIGHTS
FEBRUARY 1, 1996 - JULY 31, 1996
INVESTMENT OBJECTIVE: Colonial New York Tax-Exempt Fund seeks as high a level of
after-tax total return, as is consistent with prudent risk, by pursuing current
income exempt from federal and New York state and city personal income tax. The
Fund also provides opportunities for long-term appreciation from a portfolio
primarily invested in investment grade municipal bonds.
THE FUND IS DESIGNED TO OFFER:
- High monthly double- or triple-tax-free income
- Long-term appreciation
- Emphasis on quality
PORTFOLIO MANAGER COMMENTARY: "The Fund is invested in a mixture of high
quality, lower coupon bonds that could provide the potential for price
appreciation, and lower quality, high coupon bonds that could enhance cash flows
and could help support the net asset value during periods of rising interest
rates." - Robert Waas
COLONIAL NEW YORK TAX-EXEMPT FUND PERFORMANCE
<TABLE>
<CAPTION>
CLASS A CLASS B
Inception dates 9/26/86 8/4/92
<S> <C> <C>
Distributions declared per share* $0.198 $0.172
SEC yields on 7/31/96** 4.96% 4.46%
Taxable-equivalent SEC yields*** 9.34% 8.40%
Total returns, assuming reinvestment
of all distributions and no sales
charge or contingent deferred sales
charge (CDSC) 6 months (1.07)% (1.45)%
Net asset value per share at 7/31/96 $6.97 $6.97
</TABLE>
*A portion of the Fund's income may be subject to the alternative minimum tax.
**The 30-day SEC yields on July 31, 1996 reflect the portfolio's earning power,
net of expenses, expressed as an annualized percentage of the maximum offering
price per share at the end of the period. If the Adviser had not waived or borne
certain Fund expenses, SEC yields would have been lower; the yield for Class A
shares would have been 4.70% and the yield for Class B shares would have been
4.18%.
***Taxable-equivalent SEC yields are based on the maximum effective 46.9%
federal and New York state and city income tax rates.
<TABLE>
<CAPTION>
QUALITY BREAKDOWN TOP FIVE SECTORS
(as of 7/31/96) (as of 7/31/96)
<S> <C> <C>
AAA ........ 21.2% Non-rated ... 5.4% Publically Owned Utility ...... 14.4%
AA ......... 15.8% Cash & Justice ....................... 11.8%
A .......... 24.8% Equivs ...... 1.8% Tax Allocation ................ 8.7%
BBB ........ 30.3% Education ..................... 8.3%
BB ......... 0.7% General Obligation ............ 7.4%
</TABLE>
Sector classifications are based upon Colonial's defined criteria as used in the
investment process. Because the Fund is actively managed, quality and sector
weightings will change.
2
<PAGE>
PRESIDENT'S MESSAGE
TO FUND SHAREHOLDERS
I am pleased to present your Fund's semiannual report for the period ended July
31, 1996. Your receipt of this report provides us with the opportunity to
reflect on the investment environment of the past six months.
[photo of Harold W. Cogger]
In the bond market, significantly stronger than expected economic indicators
early in the period stirred inflation fears and propelled long-term interest
rates upward. The Federal Reserve Board lowered short-term interest rates in
January, but failed to continue the easing trend that the market anticipated. As
a result, long-term interest rates rose during the period, eliminating almost
half of the ground gained during 1995's bond market rally. Bond market
volatility continues, based upon receipt of conflicting economic reports and
changing expectations of Federal Reserve Board activity.
While market conditions put pressure on municipal bond prices as well, there was
some good news for the tax-exempt sector. Some of the significant reasons that
municipal bonds outperformed Treasury bonds were technical, such as low supply
and strong retail market support. Others were fundamental, such as the easing of
fears generated by tax-reform proposals, particularly those promoting a flat
tax.
In the stock market, generally favorable conditions prevailed throughout most of
the period, with both large company and small company stocks posting strong
performance until July, when a price correction took place. As a result of that
correction, stock indices generally posted negative total returns for July.
Our expectations for the remainder of 1996 include a moderating economy. We do
believe that the economy will continue to grow, although at a slower pace than
was indicated earlier this year. The lack of any appreciable wage and price
pressure should put the bond market's fears of inflation to rest. Therefore, we
are optimistic that market psychology will shift and volatility will decline by
year-end.
As always, we thank you for the opportunity to help you meet your investment
goals through the Colonial family of funds.
Respectfully,
/s/ Harold W. Cogger
Harold W. Cogger
President
September 11, 1996
3
<PAGE>
PORTFOLIO MANAGEMENT REPORT
ROBERT WAAS is portfolio manager of the Colonial New York Tax-Exempt Fund and is
vice president of Colonial Management Associates, Inc.
Q: WHAT WAS THE FUND'S STRATEGY DURING THE PAST SIX MONTHS?
A: We implemented a two-part strategy near the beginning of the period. First,
we reduced our investment in 30-year discount bonds that are priced to maturity
and increased our investments in 30-year premium bonds that are priced to the
call. Because the call date occurs much earlier than the 30-year final maturity,
the interest rate sensitivity of callable bonds is lower, effectively the same
as that of other bonds that would mature on the call date. Second, to the extent
that we chose to own discount bonds, we exchanged those with 30-year maturities
for bonds with 15 to 20-year maturities. Both moves had the effect of increasing
the Fund's holdings of shorter effective maturities, reducing the expected price
swings in response to interest rate changes.
Q: HOW DID THE FUND'S SIX MONTH PERFORMANCE COMPARE TO THE LEHMAN BROTHERS
MUNICIPAL BOND INDEX?
A: The Fund underperformed the Lehman Brothers Municipal Bond Index, a
broad-based, unmanaged index that tracks the performance of the municipal bond
market. The Index's holdings represent many states, not just New York. The total
return for the Fund's Class A shares, based on net asset value, was down 1.07%,
while the return on the Index was down 0.30%. This underperformance is
attributable to the Fund's narrower range of investments.
Q: WHAT FACTORS CONTRIBUTED TO PERFORMANCE DURING THIS PERIOD?
A: The biggest factor was a number of stronger than expected economic reports
that resulted in interest rates moving up close to 100 basis points over the
period, which had a negative effect on fixed income investments. Other factors
included heavy issuance of New York bonds, particularly state-appropriated
issues, which put some pressure on prices. We enhanced performance by decreasing
the Fund's holdings of interest rate sensitive, non-callable bonds by more than
15%, which reduced the Fund's volatility. Performance also benefited from coupon
income from investments in premium bonds made near the beginning of the period.
Q: HOW IS THE STATE'S ECONOMY FARING?
A: Our outlook on the State of New York is improving somewhat, based in part on
a more positive outlook for the City of New York. Evidence that fewer industries
and corporations are fleeing the City as well as signs of business expansion, as
illustrated by the 42nd Street revitalization effort, lead us to believe that
the City may begin to make serious progress in overcoming its economic and
fiscal problems. Accordingly, we have invested a portion of the Fund in New York
City general obligation bonds.
4
<PAGE>
Q: WHAT IS YOUR OUTLOOK FOR THE REMAINDER OF 1996?
A: A number of recent reports have indicated stronger economic growth. Despite
these growth indicators, we have not seen any appreciable wage and price
pressure, and believe the market's fears of inflation should be calmed. We do
expect continued volatility and fluctuating interest rates through the end of
the year; with only a modest prospect for tax-exempt bonds to appreciate in
price. However, we believe that Fund shareholders will continue to receive
competitive returns during this portion of the market cycle and that the Fund
may be positioned to generate strong total returns should interest rates
decline.
COLONIAL NEW YORK TAX-EXEMPT FUND'S INVESTMENT PERFORMANCE
Change in Value of $10,000 from 9/86 to 7/96
Based on Net Asset Value (NAV) and
Maximum Offering Price (MOP) for Class A Shares
<TABLE>
<CAPTION>
CNYTEF Preload Postload Lehman
<S> <C> <C> <C>
9/86 10000 95254 10000
10/86 10159 9677 10173
11/86 10305 9816 10374
12/86 10268 9780 10345
1/87 10484 9986 10657
2/87 10542 10042 10710
3/87 10530 10030 10596
4/87 9647 9189 10064
5/87 9474 9024 10015
6/87 9798 9333 10309
7/87 9918 9447 10414
8/87 9952 9479 10437
9/87 9356 8912 10052
10/87 9311 8869 10088
11/87 9569 9114 10351
12/87 9797 9332 10501
1/88 10227 9741 10876
2/88 10301 9811 10991
3/88 10126 9645 10863
4/88 10169 9686 10945
5/88 10165 9682 10913
6/88 10347 9855 11073
7/88 10386 9893 11145
8/88 10442 9946 11155
9/88 10626 10122 11357
10/88 10828 10314 11557
11/88 10723 10214 11451
12/88 10862 10346 11568
1/89 11034 10510 11808
2/89 10960 10439 11673
3/89 10935 10415 11645
4/89 11126 10598 11922
5/89 11252 10717 12169
6/89 11412 10870 12334
7/89 11488 10943 12503
8/89 11361 10821 12380
9/89 11369 10829 12343
10/89 11429 10886 12494
11/89 11576 11026 12712
12/89 11693 11138 12817
1/90 11584 11034 12756
2/90 11685 11130 12870
3/90 11663 11109 12874
4/90 11572 11022 12781
5/90 11838 11275 13060
6/90 11962 11394 13175
7/90 12178 11599 13369
8/90 11975 11406 13175
9/90 11918 11352 13182
10/90 12063 11490 13422
11/90 12246 11664 13691
12/90 12317 11732 13751
1/91 12444 11853 13936
2/91 12516 11921 14057
3/91 12568 11971 14062
4/91 12793 12186 14250
5/91 12886 12274 14676
6/91 12863 12252 14362
7/91 13033 12414 14537
8/91 13205 12578 14728
9/91 12476 12836 14921
10/91 13630 12982 15055
11/91 13685 13035 15097
12/91 13880 13221 15420
1/92 13795 13140 15456
2/92 13851 13193 15461
3/92 139063 13246 15467
4/92 14023 13357 15604
5/92 14202 13528 15788
6/92 14465 13778 16053
7/92 14895 14188 16534
8/92 14723 14023 16373
9/92 14822 14118 16480
10/92 14606 13912 16318
11/92 14897 14189 16610
12/92 15059 14344 16780
1/93 15244 14520 16975
2/93 15796 15045 17589
3/93 15637 14894 17403
4/93 15781 15031 17578
5/93 15926 15170 17677
6/93 16176 15408 17973
7/93 16141 15374 17996
8/93 16503 15719 18371
9/93 16690 15897 18580
10/93 16699 15906 18616
11/93 16551 15764 18451
12/93 16898 16095 18841
1/94 17067 16256 19056
2/94 16623 15833 18563
3/94 15832 15080 17807
4/94 15889 18134 17958
5/94 16036 15274 18113
6/94 15906 15150 18003
7/94 16243 15471 18333
8/94 16370 15592 19396
9/94 16004 15244 18126
10/94 15615 14874 17805
11/94 15078 14362 17482
12/94 15568 14829 17867
1/95 16157 15389 18378
2/95 16678 15885 18912
3/95 16859 16058 19130
4/95 16871 16070 19152
5/95 17397 16571 19763
6/95 17012 16204 19591
7/95 17148 16334 19776
8/95 17380 16554 20027
9/95 17462 16633 20154
10/95 17822 16975 20447
11/95 18258 17391 20786
12/95 18469 17592 20986
1/96 18579 17696 21144
</TABLE>
- ----------------------------------------------------------------------
Lehman
$21,081
[GRAPH] NAV
$18,379
MOP
$17,506
- ----------------------------------------------------------------------
9/86 7/96
A $10,000 investment in Class B shares made on 8/92 (inception) at NAV would
have been valued at $12,006 on 7/31/96. The same investment after deducting the
applicable contingent deferred sales charge (CDSC) would have grown to $11,712
on 7/31/96.
AVERAGE ANNUAL TOTAL RETURNS
As of June 30, 1996 (most recent quarter end)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
CLASS A SHARES CLASS B SHARES
Inception 9/26/86 Inception 8/4/92
NAV MOP NAV W/CDSC
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1 year 7.21% 2.12% 6.41% 1.41%
- -------------------------------------------------------------------------------
5 years 7.23% 6.19% -- --
- -------------------------------------------------------------------------------
Since inception 6.34% 5.82% 4.60% 3.94%
- -------------------------------------------------------------------------------
</TABLE>
The Lehman Brothers Municipal Bond Index is a broad-based, unmanaged index that
tracks the performance of the municipal bond market. The performance of the
Index does not reflect fees or expenses associated with an actual investment.
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. NAV return does not include sales charges
or CDSC. MOP return includes the maximum sales charge of 4.75%. The CDSC return
reflects the maximum charge of 5% for one year and 3% since inception. If the
Adviser had not waived or borne certain Fund expenses, total returns would have
been lower.
Performance for different share classes will vary based on differences in sales
charges and fees associated with each class.
5
<PAGE>
INVESTMENT PORTFOLIO
JULY 31, 1996 (UNAUDITED, IN THOUSANDS)
<TABLE>
<CAPTION>
MUNICIPAL BONDS - 97.4% PAR VALUE
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
EDUCATION - 8.2%
EDUCATION
State Dormitory Authority:
City University System:
Series 1990-C,
7.500% 07/01/10 $ 1,500 $ 1,718
Series 1993 A,
6.000% 07/01/20 2,000 1,975
Series 1995 A,
5.625% 07/01/16 1,000 944
State University System:
Series 1985,
7.800% 12/01/05 (a) 170 181
Series 1993 A,
5.250% 05/15/21 3,000 2,674
University of New York,
Series 1990 B,
7.500% 05/15/11 1,000 1,153
-----------
8,645
-----------
- ----------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 5.2%
HEALTH SERVICES - 0.0%
State Housing Finance Agency,
Series 1990 A,
8.000% 11/01/08 45 50
-----------
HOSPITAL - 1.7%
State Medical Care Facilities
Finance Agency,
Vassar Brothers Hospital, Series 1987 A,
8.250% 11/01/13 740 776
State Certificate of Participation,
Office of Mental Health,
8.300% 09/01/12 1,000 1,052
-----------
1,828
-----------
INTERMEDIATE CARE FACILITIES - 1.4%
State Medical Care Facilities
Finance Agency:
Series 1987 A,
8.875% 08/15/07 270 286
Series 1990 B,
7.875% 08/15/08 250 278
</TABLE>
6
<PAGE>
<TABLE>
<CAPTION>
Investment Portfolio/July 31, 1996
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Series 1991 D,
7.400% 02/15/18 $ 820 $ 904
-----------
1,468
-----------
NURSING HOME - 2.1%
State Dormitory Authority:
Menorah Campus,
Series 1991,
7.400% 02/01/31 245 269
Bishop Henry B. Hucles Nursing Home,
Series 1996,
5.625% 07/01/18 2,000 1,910
-----------
2,179
-----------
- ----------------------------------------------------------------------------------------------------------------------------------
HOUSING - 6.1%
MULTI-FAMILY - 3.6%
Hudson Housing Development Corp.,
Providence Hall-Schuyler Court Project,
Series 1992 A,
6.500% 01/01/22 (a) 750 773
Nyack Housing Assistance Corp.,
Nyack Plaza Apartments,
7.375% 06/01/21 (b) 1,351 1,360
State Housing Finance Agency,
Series 1989 B,
7.550% 11/01/29 230 241
Yorktown Housing Corp.,
Beaveridge Apartments,
Series 1979,
7.375% 06/01/21 (b) 1,437 1,438
-----------
3,812
-----------
SINGLE-FAMILY - 2.5%
State Mortgage Agency:
Series BB 2,
7.950% 10/01/15 570 590
Series EE 1,
8.050% 04/01/16 825 879
Series MM 1,
7.950% 10/01/21 1,000 1,070
Series 10 A,
8.100% 04/01/14 105 110
-----------
2,649
-----------
</TABLE>
7
<PAGE>
<TABLE>
<CAPTION>
Investment Portfolio/July 31, 1996
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MUNICIPAL BONDS - CONT. PAR VALUE
- ----------------------------------------------------------------------------------------------------------------------------------
OTHER REVENUE - 16.2%
CHEMICALS - 1.1%
Monroe County Industrial
Development Agency,
Yorkmill Realty Assoc., Series 1986,
9.500% 12/01/06 $ 1,145 $ 1,183
-----------
JUSTICE & PUBLIC ORDER - 11.7%
State Dormitory Authority,
New York City Court Facilities,
Series 1993 A:
5.375% 05/15/16 3,000 2,715
5.625% 05/15/13 2,300 2,171
State Urban Development Corp.:
Series 4,
5.375% 01/01/23 5,000 4,413
Series 1995,
5.700% 04/01/09 3,120 3,054
-----------
12,353
-----------
MANUFACTURING - 3.4%
Monroe County Industrial
Development Agency,
Accede Mold & Tool Co., Series 1987,
10.750% 11/01/07 590 615
Onondaga County Industrial
Development Agency,
Bristol Meyers Squibb Co., Series 1994,
5.750% 03/01/24 3,000 2,933
-----------
3,548
-----------
- ----------------------------------------------------------------------------------------------------------------------------------
PUBLIC FACILITIES IMPROVEMENT - 5.3%
New York City Industrial
Development Agency, United States Tennis
Association, Tennis Center Project,
Series 1994,
6.375% 11/15/14 (a) 1,500 1,568
State Dormitory Authority,
Judicial Facilities,
Series 1991 A,
9.500% 04/15/14 1,000 1,166
State Urban Development Corp.,
Series 1995,
5.750% 04/01/12 1,750 1,708
Triborough Bridge & Tunnel Authority,
Javits Convention Center Project,
Series E,
7.250% 01/01/10 1,000 1,123
-----------
5,565
-----------
</TABLE>
8
<PAGE>
<TABLE>
<CAPTION>
Investment Portfolio/July 31, 1996
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PUBLIC INFRASTRUCTURE - 0.2%
Albany Parking Authority,
Green and Hudson Garage Project,
Series 1991 A,
7.150% 09/15/16 $ 250 $ 261
-----------
- ----------------------------------------------------------------------------------------------------------------------------------
REFUNDED/ESCROW/SPECIAL OBLIGATION(c) - 2.3%
Babylon Industrial Development Agency,
Ogden Martin System of Babylon, Inc,
Series 1985 B,
8.500% 01/01/19 495 548
Monroe County Industrial
Development Agency,
Roberts Wesleyan College, Series 1991,
7.400% 09/01/11 750 813
State Housing Finance Agency,
Series 1990 A,
8.000% 11/01/08 205 235
State Medical Care Facilities
Finance Agency,
Series 1990 B,
7.875% 08/15/08 225 256
Syracuse Industrial Development
Authority,
Series 1990 A,
7.700% 06/01/15 500 553
-----------
2,405
-----------
- ----------------------------------------------------------------------------------------------------------------------------------
RESOURCE RECOVERY - 1.7%
CO-GENERATION - 1.0%
Port Authority of New York & New Jersey,
KIAC Partners,
Series 1996 IV,
6.750% 10/01/19 1,000 1,000
-----------
MISCELLANEOUS DISPOSAL - 0.7%
St. Lawrence County Solid Waste
Disposal Authority, Series 1987,
8.875% 01/01/08 750 780
-----------
- ----------------------------------------------------------------------------------------------------------------------------------
TAX-BACKED - 15.9%
GENERAL OBLIGATION - 7.3%
State Environmental Quality,
5.000% 01/15/10 4,715 4,444
</TABLE>
9
<PAGE>
<TABLE>
<CAPTION>
Investment Portfolio/July 31, 1996
- ----------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS - CONT. PAR VALUE
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
TAX-BACKED - CONT.
GENERAL OBLIGATION - CONT.
New York City,
Series 1997 A,
7.000% 08/01/07 $ 3,000 $ 3,236
-----------
7,680
-----------
TAX ALLOCATION - 8.6%
State Local Government Assistance Corp.,
Series 1993 C,
5.500% 04/01/17 2,000 1,945
Series 1993 E:
5.000% 04/01/21 5,000 4,519
6.000% 04/01/14 2,500 2,603
-----------
9,067
-----------
- ----------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 11.5%
AIR TRANSPORTATION - 2.0%
New York City Industrial
Development Agency,
American Airlines, Inc. Series 1994,
6.900% 08/01/24 2,000 2,078
-----------
TRANSPORTATION - 5.4%
Metropolitan Transportation Authority:
Series O,
5.500% 07/01/17 3,200 3,004
Series 7,
4.750% 07/01/19 1,000 818
Series 85,
5.375% 03/01/28 2,000 1,856
-----------
5,678
-----------
TURNPIKE/TOLLROAD/BRIDGE - 4.1%
Triborough Bridge & Tunnel
Authority:
Series L,
8.000% 01/01/07 1,000 1,068
8.125% 01/01/12 1,100 1,173
Series 1991 B,
6.875% 01/01/15 2,000 2,135
-----------
4,376
-----------
- ----------------------------------------------------------------------------------------------------------------------------------
UTILITY - 24.8%
INVESTOR OWNED - 14.3%
State Energy Research & Development
Authority:
Consolidated Edison Co., Series 1991 A,
7.500% 01/01/26 500 538
</TABLE>
10
<PAGE>
<TABLE>
<CAPTION>
Investment Portfolio/July 31, 1996
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Brooklyn Union Gas Co.:
Series 1989 A,
6.750% 02/01/24 (a) $ 3,000 $ 3,210
Series 1991 B,
9.927% 07/15/26 700 806
Series 1993-B, RIB, (variable rate),
8.755% 04/01/20 1,500 1,584
Consolidated Edison Co.:
Series 1992 A,
6.750% 01/15/27 (a) 5,000 5,288
Series 1993 B,
5.250% 08/15/20 (a) 4,000 3,655
-----------
15,081
-----------
JOINT POWER AUTHORITY - 5.1%
State Power Authority,
Series Y,
6.750% 01/01/18 3,000 3,251
State Power Authority,
Series 1991 Z,
6.625% 01/01/12 2,000 2,108
-----------
5,359
-----------
MUNICIPAL ELECTRIC - 1.3%
Puerto Rico Electric Power Authority,
Series 1989 O,
5.000% 07/01/12 1,500 1,363
-----------
WATER & SEWER - 4.1%
State Environmental Facilities Corp.,
New York City Municipal Water
Finance Authority, Series 1990 A,
7.500% 06/15/12 2,000 2,205
Commonwealth of Puerto Rico
Aqueduct & Sewer Authority,
Series 1995,
6.250% 07/01/12 2,000 2,108
-----------
4,313
-----------
TOTAL MUNICIPAL BONDS (cost of $97,493)(d) 102,721
-----------
</TABLE>
11
<PAGE>
<TABLE>
<CAPTION>
Investment Portfolio/July 31, 1996
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
SHORT-TERM OBLIGATIONS - 1.7% PAR VALUE
- ----------------------------------------------------------------------------------------------------------------------------------
VARIABLE RATE DEMAND NOTES (e)
FL Pinellas County Health Facilities
Authority,
Series 1985,
3.750% 12/01/15 $ 1,100 $ 1,100
Niagara Mohawk Series 1985-A,
3.650% 07/01/15 500 500
State:
Series 1994 A4,
3.700% 08/01/21 100 100
Series 1994 B4,
3.700% 08/15/22 100 100
-----------
TOTAL SHORT-TERM OBLIGATIONS 1,800
-----------
OTHER ASSETS & LIABILITIES, NET - 0.9% 904
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS- 100.0% $ 105,424
-----------
</TABLE>
NOTES TO INVESTMENT PORTFOLIO:
- --------------------------------------------------------------------------------
(a) These securities, or a portion thereof, with a total market
value of $14,675, are being used to collateralize open future
contracts.
(b) These securities are exempt from registration under Rule 144A of
the Securities Act of 1933. These securities may be resold in
transactions exempt from registration, normally to qualified
institutional buyers. At July 31, 1996, the value of these
securities amounted to $2,798 or 2.7% of net assets.
(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) Cost for federal income tax purposes is the same.
(e) 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, 1996.
Short futures contracts open at July 31, 1996:
<TABLE>
<CAPTION>
Par value Unrealized
covered by Expiration depreciation
Type contracts month at 7/31/96
-----------------------------------------------------------------------------------------
<S> <C> <C> <C>
Treasury bond 1,800 September $ 24
Acronym Name
-------------- --------------------------
RIB Residual Interest Bond
</TABLE>
12
<PAGE>
STATEMENT OF ASSETS & LIABILITIES
JULY 31, 1996 (UNAUDITED)
(in thousands except for per share amounts and footnotes)
<TABLE>
<CAPTION>
<S> <C> <C>
ASSETS
Investments at value (cost $97,493) $ 102,721
Short-term obligations 1,800
------------
104,521
Receivable for:
Interest $ 1,346
Fund shares sold 55
Expense reimbursement
due from Adviser 3
Other 64 1,468
--------------- ------------
Total Assets 105,989
LIABILITIES
Payable for:
Distributions 465
Fund shares repurchased 86
Variation margin on futures 12
Accrued Deferred Trustees fees 2
---------------
Total Liabilities 565
------------
NET ASSETS $ 105,424
------------
Net asset value & redemption price per share -
Class A ($51,874/7,437) $ 6.97
------------
Maximum offering price per share - Class A
($6.97/0.9525) $ 7.32 (a)
------------
Net asset value & offering price per share -
Class B ($53,550/7,677) $ 6.97 (b)
------------
COMPOSITION OF NET ASSETS
Capital paid in $ 105,421
Undistributed net investment income 99
Accumulated net realized loss (5,300)
Net unrealized appreciation (depreciation) on:
Investments 5,228
Open futures contracts (24)
------------
$ 105,424
------------
</TABLE>
(a) On sales of $50,000 or more the offering price is reduced.
(b) Redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
See notes to financial statements.
13
<PAGE>
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JULY 31, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
<S> <C> <C>
(in thousands)
INVESTMENT INCOME
Interest $ 3,317
EXPENSES
Management fee $ 288
Service fee 79
Distribution fee - Class B 199
Transfer agent 85
Bookkeeping fee 23
Trustees fee 7
Custodian fee 3
Audit fee 15
Legal fee 3
Registration fee 3
Reports to shareholders 3
Other 7
------------
715
Fees waived by the Adviser (170) 545
------------ -----------
Net Investment Income 2,772
-----------
NET REALIZED & UNREALIZED GAIN (LOSS) ON PORTFOLIO POSITIONS
Net realized gain on:
Investments 40
Closed futures contracts 344
------------
Net Realized Gain 384
Net unrealized depreciation during
the period on:
Investments (4,507)
Open futures contracts (3)
------------
Net Unrealized Depreciation (4,510)
-----------
Net Loss (4,126)
-----------
Net Decrease in Net Assets from Operations $ (1,354)
-----------
</TABLE>
See notes to financial statements.
14
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
(Unaudited)
Six months
ended Year ended
(in thousands) July 31 January 31
-------------------------------------
INCREASE (DECREASE) IN NET ASSETS 1996 1996
<S> <C> <C>
Operations:
Net investment income $ 2,772 $ 5,637
Net realized gain (loss) 384 (1,905)
Net unrealized appreciation (depreciation) (4,510) 10,524
------------- ----------
Net Increase (Decrease) from Operations (1,354) 14,256
Distributions:
From net investment income - Class A (1,510) (3,241)
From net investment income - Class B (1,304) (2,495)
------------- ----------
(4,168) 8,520
------------- ----------
Fund Share Transactions:
Receipts for shares sold - Class A 3,238 8,444
Value of distributions reinvested - Class A 763 1,635
Cost of shares repurchased - Class A (6,807) (11,130)
------------- ----------
(2,806) (1,051)
------------- ----------
Receipts for shares sold - Class B 5,695 11,109
Value of distributions reinvested - Class B 710 1,431
Cost of shares repurchased - Class B (4,307) (6,197)
------------- ----------
2,098 6,343
------------- ----------
Net Increase (Decrease) from Fund Share
Transactions (708) 5,292
------------- ----------
Total Increase (Decrease) (4,876) 13,812
NET ASSETS
Beginning of period 110,300 96,488
------------- ----------
End of period (including undistributed net
investment income of $99 and $120,
respectively) $ 105,424 $ 110,300
------------- ----------
NUMBER OF FUND SHARES
Sold - Class A 462 1,214
Issued for distributions reinvested - Class A 109 234
Repurchased - Class A (973) (1,597)
------------- ----------
(402) (149)
------------- ----------
Sold - Class B 811 1,599
Issued for distributions reinvested - Class B 102 205
Repurchased - Class B (620) (886)
------------- ----------
293 918
------------- ----------
</TABLE>
See notes to financial statements.
15
<PAGE>
NOTES TO FINANCIAL STATEMENTS
JULY 31,1996 (UNAUDITED)
NOTE 1. INTERIM FINANCIAL STATEMENTS
In the opinion of management of Colonial New York 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, 1996, and the results of its operations, the
changes in its net assets and the financial highlights for the six
months then ended.
NOTE 2. ACCOUNTING POLICIES
ORGANIZATION: Colonial New York Tax-Exempt Fund (the Fund), a
series of Colonial Trust V, 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's investment objective is to seek as
high a level of after-tax total return, as is consistent with
prudent risk. 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 preparation of financial statements in conformity with
generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting
period. Actual results could differ from those estimates. The
following is a summary of significant accounting policies that are
consistently followed by the Fund in the preparation of its
financial statements.
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.
16
<PAGE>
Notes to Financial Statements/July 31, 1996
Security transactions are accounted for on the date the securities
are purchased, sold or mature.
Cost is determined and gains (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 annualized 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.
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 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.
Reclassifications are made to the Fund's capital accounts to
reflect income and gains available for distribution (or available
capital loss carryforwards) under income tax regulations.
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
17
<PAGE>
Notes to Financial Statements/July 31, 1996
NOTE 3. FEES AND COMPENSATION PAID TO AFFILIATES - CONT.
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:
<TABLE>
<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>
Effective January 1, 1996 the management fee applicable to the
Trust is being reduced based on the following schedule for the
first $1 billion in combined average net assets:
<TABLE>
<CAPTION>
Cumulative Annualized
Effective Date Reduction
---------------------------- --------------
<S> <C>
January 1, 1996 0.0125%
April 1, 1996 0.0250%
July 1, 1996 0.0375%
October 1, 1996 0.0500%
</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. For the six months
ended July 31, 1996, the Fund has been advised that the Distributor
retained net underwriting discounts of $9,945 on sales of the
Fund's Class A shares and received contingent deferred sales
charges (CDSC) of $82,882 on Class B share redemptions.
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
Fund's average net assets attributable to Class B shares. The plan
also requires the payment of a service fee to the Distributor as
follows:
<TABLE>
<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.
18
<PAGE>
Notes to Financial Statements/July 31, 1996
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 0.50% annually of the Fund's average net assets.
OTHER: The Fund pays no compensation to its officers, all of whom
are employees of the Adviser.
The Fund's Trustees may participate in a deferred compensation plan
which may be terminated at any time. Obligations of the plan will
be paid solely out of the Fund's assets.
NOTE 4. PORTFOLIO INFORMATION
INVESTMENT ACTIVITY: During the six months ended July 31, 1996,
purchases and sales of investments, other than short-term
obligations, were $40,043,790 and $40,400,527, respectively.
Unrealized appreciation (depreciation) at July 31, 1996, based on
cost of investments for both financial statement and federal income
tax purposes was:
<TABLE>
<CAPTION>
<S> <C>
Gross unrealized appreciation $ 5,561,854
Gross unrealized depreciation (334,075)
---------------
Net unrealized appreciation $ 5,227,779
---------------
</TABLE>
CAPITAL LOSS CARRYFORWARDS: At January 31, 1996, capital loss
carryforwards available (to the extent provided in regulations) to
offset future realized gains were approximately as follows:
<TABLE>
<CAPTION>
Year of Capital loss
expiration carryforward
------------ ----------------
<S> <C>
1997 228,000
1998 26,000
1999 37,000
2003 187,000
2004 3,211,000
--------------
$ 3,689,000
--------------
</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.
19
<PAGE>
Notes to Financial Statements/July 31, 1996
NOTE 4. PORTFOLIO INFORMATION - CONT.
The Fund may focus its investments in certain industries,
subjecting it to greater risk than a fund that is more diversified.
The Fund may purchase or sell municipal and Treasury bond futures
contracts and purchase and write options on futures. The Fund will
invest in these instruments to hedge against the effects of changes
in value of portfolio securities due to anticipated changes in
interest rates and/or market conditions, for duration management,
or when the transactions are economically appropriate to the
reduction of risk inherent in the management of the Fund and not
for trading purposes. The use of futures contracts and options
involves certain risks, which include (1) imperfect correlation
between the price movement of the instruments 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 instrument 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 amount recognized in the Fund's Statement of Assets and
Liabilities at any given time.
NOTE 5. LINE OF CREDIT
The Fund may borrow up to 10% of its net assets under a line of
credit for temporary or emergency purposes. Any borrowings bear
interest at one of the following options determined at the
inception of the loan: (1) federal funds rate plus 1/2 of 1%, (2)
the lending bank's base rate or (3) IBOR offshore loan rate plus
1/2 of 1%. There were no borrowings under the line of credit during
the six months ended July 31, 1996.
20
<PAGE>
FINANCIAL HIGHLIGHTS
Selected data for a share of each class outstanding throughout each period
are as follows:
<TABLE>
<CAPTION>
(Unaudited)
Six months ended Year ended
July 31 January 31
---------------------------------- -------------------------------
1996 1996
Class A Class B Class A Class B
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Net asset value -
Beginning of period $ 7.250 $ 7.250 $ 6.680 $ 6.680
----------- ----------- ----------- -----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment
income(a) 0.197 0.171 0.401 0.349
Net realized and
unrealized gain (loss) (0.279) (0.279) 0.576 0.576
----------- ----------- ----------- -----------
Total from Investment
Operations (0.082) (0.108) 0.977 0.925
----------- ----------- ----------- -----------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net
investment income (0.198) (0.172) (0.407) (0.355)
----------- ----------- ----------- -----------
Net asset value -
End of period $ 6.970 $ 6.970 $ 7.250 $ 7.250
----------- ----------- ----------- -----------
Total return(b)(c) (1.07)% (d) (1.45)% (d) 14.99% 14.15%
----------- ----------- ----------- -----------
RATIOS TO AVERAGE NET ASSETS
Expenses 0.65% (e)(f) 1.40% (e)(f) 0.58% (e) 1.33% (e)
Net investment income 5.58% (e)(f) 4.83% (e)(f) 5.72% (e) 4.97% (e)
Fees and expenses
waived or borne
by the Adviser 0.32% (f) 0.32% (f) 0.38% 0.38%
Portfolio turnover 39% (d) 39% (d) 39% 39%
Net assets at end
of period (000) $ 51,874 $ 53,550 $ 56,795 $ 53,505
(a) Net of fees and expenses waived or borne by the Adviser which amounted to:
$ 0.011 $ 0.011 $ 0.026 $ 0.026
(b) Total return at net asset value assuming all distributions reinvested and no
initial sales charge or contingent deferred sales charge.
(c) Had the Adviser not waived or reimbursed a portion of expenses, total return
would have been reduced.
(d) Not annualized.
(e) The benefits derived from custody credits and directed brokerage
arrangements had no impact. Prior years' ratios are net of benefits
received, if any.
(f) Annualized.
</TABLE>
21
<PAGE>
FINANCIAL HIGHLIGHTS - CONT.
Selected data for a share of each class outstanding throughout each period
are as follows:
<TABLE>
<CAPTION>
Year ended January 31
------------------------------------------------------------------
1995 1994
Class A Class B Class A Class B
------------- ----------- ------------ ------------
<S> <C> <C> <C> <C>
Net asset value -
Beginning of period $ 7.500 $ 7.500 $ 7.090 $ 7.090
------------- ----------- ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income(a) 0.427 0.376 0.421 0.368
Net realized and
unrealized gain (loss) (0.834) (0.834) 0.407 0.407
------------- ----------- ------------ ------------
Total from Investment
Operations (0.407) (0.458) 0.828 0.775
------------- ----------- ------------ ------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net
investment income (0.413) (0.362) (0.418) (0.365)
From capital paid in -- -- -- --
------------- ----------- ------------ ------------
Total Distributions
Declared to Shareholders (0.413) (0.362) (0.418) (0.365)
------------- ----------- ------------ ------------
Net asset value -
End of period $ 6.680 $ 6.680 $ 7.500 $ 7.500
------------- ----------- ------------ ------------
Total return(c)(d) (5.32)% (6.04)% 11.95% 11.14%
------------- ----------- ------------ ------------
RATIOS TO AVERAGE NET ASSETS
Expenses 0.42% 1.17% 0.62% 1.37%
Net investment income 6.25% 5.50% 5.68% 4.93%
Fees and expenses waived
or borne by the Adviser 0.46% 0.46% 0.29% 0.29%
Portfolio turnover 65% 65% 25% 25%
Net assets at end
of period (000) $ 53,322 $ 43,166 $ 63,527 $ 45,061
(a) Net of fees and expenses waived or borne by the Adviser which amounted to:
$ 0.032 $ 0.032 $ 0.021 $ 0.021
(b) Class B shares were initially offered on August 4, 1992. Per share
amounts reflect activity from that date.
(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) Annualized.
</TABLE>
22
<PAGE>
FINANCIAL HIGHLIGHTS - CONT.
<TABLE>
<CAPTION>
Year ended January 31
------------------------------------------------------
1993 1992
Class A Class B (b) Class A
------------ --------------- ------------
<S> <C> <C>
$ 6.840 $ 7.130 $ 6.600
------------ --------------- ------------
0.438 0.182 0.453
0.260 (0.029) 0.242
------------ --------------- ------------
0.698 0.153 0.695
------------ --------------- ------------
(0.445) (0.190) (0.455)
(0.003) (0.003) --
------------ --------------- ------------
(0.448) (0.193) (0.455)
------------ --------------- ------------
$ 7.090 $ 7.090 $ 6.840
------------ --------------- ------------
10.50% 1.16% (e) 10.86%
------------ --------------- ------------
0.96% 1.71% (f) 1.00%
6.25% 5.50% (f) 6.71%
0.06% 0.06% (f) 0.14%
7% 7% 17%
$ 53,779 $ 14,743 $ 40,233
$ 0.004 $ 0.001 $ 0.009
</TABLE>
23
<PAGE>
SHAREHOLDER SERVICES
TO MAKE INVESTING EASIER
Colonial has one of the most extensive selections of shareholder services
available. Your financial adviser can help you arrange for any of these
services, or you can call Colonial directly at 1-800-345-6611.
AFFORDABLE ADDITIONAL INVESTMENTS: Add to your account with as little as $50;
$25 for an IRA account.
FREE EXCHANGES*: Exchange all or part of your account into the same share class
of another Colonial fund, by phone or mail, as your needs change over time.
EASY ACCESS TO YOUR MONEY*: Make withdrawals from your account by phone, by mail
or, for certain funds, by check.
ONE-YEAR REINSTATEMENT PRIVILEGE: If you need access to your money, but then
choose to return it to Colonial within one year, you can reinvest in any
Colonial fund of the same share class without any penalty or sales charge.
FUNDAMATIC: Make periodic investments as low as $50 from your checking account
to your Colonial account.
SYSTEMATIC WITHDRAWAL PLAN (SWP): Receive monthly, quarterly, or semiannual
payments via check or bank transmission. There is a $5,000 account value
required, but no minimum for the payment amount. The maximum annual withdrawal
is 12% of account balance at time SWP is established. SWPs by check are
processed on the 10th of each month.
AUTOMATED DOLLAR COST AVERAGING: Transfer money on a monthly basis from any
Colonial fund with a balance of $5,000 into the same share class of up to four
other Colonial funds. Minimum for each transfer is $100.
LOW COST IRAS: Choose from a broad range of retirement plans, including IRAs.
* Redemptions and exchanges are made at the next determined net asset value
after the request is received by Colonial. Proceeds may be more or less than
your original cost. The exchange privilege may be terminated at any time.
Investors who purchase Class B or Class D shares (for applicable funds), or $1
million or more of Class A shares, may be subject to a contingent deferred sales
charge.
24
<PAGE>
HOW TO REACH COLONIAL
BY PHONE OR BY MAIL
BY TELEPHONE
COLONIAL CUSTOMER CONNECTION - 1-800-345-6611
For 24-hour account information, call from your touch-tone phone. (Rotary
callers will be automatically connected to a representative during business
hours.) A recorded message will guide you through the menu:
For fund prices, dividends, and capital gains information ........... press 1
For account information ............................................. press 2
To speak to a Colonial representative ............................... press 3
For yield and total return information .............................. press 4
For duplicate statements or new supply of checks .................... press 5
To order duplicate tax forms and year-end statements ................ press 6
(February through May)
To review your options at any time during your call ................. press *
To speak with a shareholder services representative about your account, call
Monday to Friday, 8:00 am to 8:00 pm ET, and Saturdays from February through
mid-April, 10:00 am to 2:00 pm ET.
COLONIAL TELEPHONE TRANSACTION DEPARTMENT - 1-800-422-3737
To purchase, exchange, or sell shares by telephone, call Monday to Friday, 9:00
am to 8:00 pm ET. Transactions received after the close of the New York Stock
Exchange will receive the next business day's closing price.
COLONIAL LITERATURE DEPARTMENT - 1-800-248-2828
To request literature on any Colonial fund, call Monday to Friday, 8:30 am to
6:30 pm ET.
BY MAIL
COLONIAL INVESTORS SERVICE CENTER, INC.
P.O. BOX 1722
BOSTON, MA 02105-1722
25
<PAGE>
SHAREHOLDER COMMUNICATIONS
TO KEEP YOU INFORMED
To make recordkeeping easy and keep you up-to-date on the performance of your
investments, you can expect to receive the following information about your
Colonial account:
TRANSACTION CONFIRMATIONS: Each time you make a purchase, sale, or exchange, you
receive a confirmation statement within just a few days.
QUARTERLY STATEMENTS: Every three months, if any transactions are made that
affect your share balance, this statement reports on your account activity
during the quarter (including any reinvestment of dividends). This statement
also provides year-to-date information.
COLONIAL SHAREHOLDER NEWS: Mailed with your quarterly account statements, this
newsletter highlights timely investment strategies, portfolio manager
commentary, and shareholder service updates.
TAX FORMS AND YEAR-END TAX GUIDE: Easy-to-use forms and timely information are
designed to make tax reporting simpler. (Usually mailed in January.)
AVERAGE COST BASIS STATEMENTS: If you sold or exchanged shares during the year,
this statement may help you calculate your gain/loss for tax purposes. (Usually
mailed in February.)
26
<PAGE>
IMPORTANT INFORMATION ABOUT THIS REPORT
The Transfer Agent for Colonial New York Tax-Exempt Fund is:
Colonial Investors Service Center, Inc.
P.O. Box 1722
Boston, MA 02105-1722
1-800-345-6611
Colonial New York 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.
This report has been prepared for shareholders of Colonial New York
Tax-Exempt Fund. This report may also be used as sales literature when preceded
or accompanied by the current prospectus which provides details about sales
charges, investment objectives, and operating policies of the Fund.
27
<PAGE>
[Colonial Letterhead]
Mutual Funds for
Planned Portfolios
TRUSTEES
ROBERT J. BIRNBAUM
Trustee (formerly Special Counsel, Dechert, Price & Rhoads; President and Chief
Operating Officer, New York Stock Exchange, Inc.)
TOM BLEASDALE
Trustee (formerly Chairman of the Board and Chief Executive Officer, Shore Bank
& Trust Company)
LORA S. COLLINS
Attorney, Kramer, Levin, Naftalis, Nessen, Kamin & Frankel
JAMES E. GRINNELL
Private Investor (formerly Senior Vice President-Operations, The Rockport
Company)
WILLIAM D. IRELAND, JR.
Trustee (formerly Chairman of the Board, Bank of New England-Worcester)
RICHARD W. LOWRY
Private Investor (formerly Chairman and Chief Executive Officer, U.S. Plywood
Corporation)
WILLIAM E. MAYER
Dean, College of Business and Management, University of Maryland (formerly Dean,
Simon Graduate School of Business, University of Rochester; Chairman and Chief
Executive Officer, CS First Boston Merchant Bank; and President and Chief
Executive Officer, The First Boston Corporation)
JAMES L. MOODY, JR.
Chairman of the Board, Hannaford Bros. Co. (formerly Chief Executive Officer,
Hannaford Bros. Co.)
JOHN J. NEUHAUSER
Dean, Boston College School of Management
GEORGE L. SHINN
Financial Consultant (formerly Chairman, Chief Executive Officer and Consultant,
The First Boston Corporation)
ROBERT L. SULLIVAN
Management Consultant (formerly Management Consultant, Saatchi and Saatchi
Consulting Ltd. and Principal and International Practice Director, Management
Consulting, Peat Marwick Main & Co.)
SINCLAIR WEEKS, JR.
Chairman of the Board, Reed & Barton Corporation
Colonial Investment Services, Inc., Distributor (C) 1996
One Financial Center, Boston, Massachusetts 02111-2621, 617-426-3750
NY-03/512C-0796 M (9/96)
