<PAGE>
COLONIAL
OHIO TAX-EXEMPT FUND
ANNUAL REPORT
JANUARY 31, 1997
NOT FDIC- | MAY LOSE VALUE
INSURED | NO BANK GUARANTEE
<PAGE>
COLONIAL OHIO TAX-EXEMPT FUND HIGHLIGHTS
FEBRUARY 1, 1996 - JANUARY 31, 1997
INVESTMENT OBJECTIVE: Colonial Ohio 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 Ohio state 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:
/X/ High monthly double-tax-free income
/X/ Long-term appreciation
/X/ Emphasis on quality
PORTFOLIO MANAGER COMMENTARY: "The past 12 months were volatile for fixed-
income investments. Fluctuating interest rates caused the bond market to cycle
up and down over the period. However, low inflation combined with Ohio's strong
and well-managed economy favorably should position the Fund for the months
ahead."
- Brian Hartford
COLONIAL OHIO TAX-EXEMPT FUND PERFORMANCE
<TABLE>
<CAPTION>
CLASS A CLASS B
<S> <C> <C>
Inception dates 9/26/86 8/4/92
Distributions declared per share* $0.363 $0.309
SEC yields on 1/31/97** 4.47% 3.93%
Taxable-equivalent SEC yields*** 8.00% 7.03%
12-month total returns, assuming reinvestment 2.75% 1.98%
of all distributions and no sales charge or
contingent deferred sales charge (CDSC)
Net asset value per share on 1/31/97 $ 7.34 $ 7.34
</TABLE>
*A portion of the Fund's income may be subject to the alternative minimum tax.
**The 30-day SEC yields on January 31, 1997 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 4.45% for Class A
shares and 3.91% for Class B shares.
***Taxable-equivalent SEC yields are based on the maximum effective 44.1%
federal and Ohio income tax rates.
The Fund may at times purchase tax-exempt securities at a discount, and some or
all of this discount may be included in the Fund's ordinary income which will be
taxable when distributed.
<TABLE>
<CAPTION>
QUALITY BREAKDOWN TOP FIVE SECTORS
(as of 1/31/97) (as of 1/31/97)
<S> <C> <C> <C>
AAA ........................ 53.9% School General Obligations ...... 19.1%
AA ......................... 10.7% Water & Sewer ................... 15.9%
A .......................... 15.8% General Obligations ............. 19.2%
BBB ........................ 9.0% Hospitals ....................... 8.5%
BB ......................... 1.4% Education ....................... 7.6%
Non rated .................. 7.7%
Cash & Equivalents ......... 1.5%
</TABLE>
Because the Fund is actively managed, quality and sector weightings will change.
Quality breakdown and sector allocation are based on total net assets. Sector
classifications are based upon Colonial's defined criteria as used in the
investment process. Industry sectors in the following financial statements are
based upon the standard industrial classifications (SIC) as published by the
U.S. Office of Management and Budget.
2
<PAGE>
PRESIDENT'S MESSAGE
TO FUND SHAREHOLDERS
I am pleased to present your Fund's annual report for the fiscal year ended
January 31, 1997. This report provides information on the investment environment
of the past 12 months and on the performance of your Fund.
[PHOTO]
Harold W. Cogger
President
Long-term interest rates were volatile during the period. Signs that economic
growth was easing during the third quarter of 1996 led to a bond market rally
and declining interest rates. However, interest rates climbed once again during
December and January 1997 in response to accelerating economic activity.
Examples include a surge in construction and a sharp improvement in the trade
balance. Despite continued low levels of inflation, the Federal Reserve Board
characterized factors holding down prices as "temporary" and made clear its
willingness to strike against future anticipated inflation. This stance suggests
rising interest rates ahead.
Tax-exempt bonds outperformed the Treasurys during most of the period, as a
result of low supply and narrowing yield spreads. Fundamentals remain positive
and state credit quality has generally improved, reflecting in part increased
tax revenue collections generated by a stronger economy.
In the domestic stock market a focus on large capitalization stocks carried
market indexes to several record highs. European markets continued to experience
declining interest rates and inflation levels, conditions that may prevail until
economic activity in these nations increases.
Our economic expectations for 1997 are relatively bright and include growth at a
moderate, more sustainable rate than we saw during 1996. However, we expect
inflation adjusted interest rates to remain relatively high until questions
regarding both the Federal Reserve's monetary policy and Federal budget
negotiations are resolved.
The following report provides you with specific information on your Fund's
performance and insights from your portfolio manager. 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
March 12, 1997
Because market conditions change frequently, there can be no assurance that the
trends described in this report will continue, come to pass or affect Fund
performance.
3
<PAGE>
PORTFOLIO MANAGEMENT REPORT
BRIAN HARTFORD is portfolio manager of the Colonial Ohio Tax-Exempt Fund. Mr.
Hartford is Vice President of Colonial Management Associates, Inc. and is the
Quantitative Risk Manager for Colonial's tax-exempt investments.
Q. WHAT WAS THE FUND'S STRATEGY DURING THE PAST 12 MONTHS?
A. Our core strategy consisted of increasing the Fund's credit quality and
decreasing the Fund's maturity in response to market conditions. While we
started the year with a positive interest rate outlook, stronger than expected
economic reports led to rising interest rates early in the period. At that time
we reduced the Fund's interest rate sensitivity. Midway through the year, signs
of an economic slowdown coupled with continued low levels of inflation led us to
improve our outlook. We increased the Fund's sensitivity to interest rates,
permitting us to take advantage of declining interest rates during the autumn
months. Despite some reversal of the bond market rally in December and January,
our fundamental outlook has remained relatively unchanged.
Q. WHAT FACTORS CONTRIBUTED TO THE FUND'S PERFORMANCE DURING THE PERIOD?
A. Interest rate volatility had a significant impact on the Fund's performance.
Rising interest rates during the first half of the period had a negative effect
on fixed-income investments. On the positive side, the Fund's health care
holdings benefited from hospital merger activity in the state. In addition, the
portfolio's investment in multi-family housing revenue bonds performed well.
These bonds are secured by property mortgages and home owners, and are less
likely to refinance and pre-pay their mortgages in a rising interest rate
environment.
Q. WHAT FACTORS CONTRIBUTED TO PERFORMANCE DURING THIS PERIOD?
A. The biggest factor was the number of stronger than expected economic reports
that resulted in interest rates moving up over the period, a negative for
fixed-income investments. During the early part of the period, the Fund was
overweighted in interest rate-sensitive securities, such as zero-coupon and
non-callable bonds. As a result, the Fund's duration was longer than some of its
competitors. Duration measures a fund's sensitivity to interest rates; the
longer the duration, the more bond prices move with changes in interest rates.
Q. HOW IS THE STATE'S ECONOMY FARING?
A. We have a positive outlook on the State of Ohio. Reductions in heavy
manufacturing and increases in trades and services have helped to diversify the
State's economy to be more in line with the rest of the nation. In addition,
strong fiscal management and sizable financial reserves position the State to
manage a cyclical decline in economic activity. We continue to target higher
growth through the service and export industries in the central and southern
part of the State. We believe these high growth sectors may help offset the
State's historic dependence on cyclical manufacturing industries.
Q. WHAT IS YOUR OUTLOOK FOR THE MONTHS AHEAD?
A. Our investment outlook remains fairly positive. We should continue to see
moderate levels of economic growth with subdued inflation pressures through the
first half of 1997. We do not believe there are significant price
4
<PAGE>
pressures in the months ahead and are hopeful the market will reconcile
continued slow economic growth and a low level of inflation. While this could
result in lower interest rates in 1997, we will be maintaining our core strategy
until we see clearer market trends.
[CHART]
COLONIAL OHIO TAX-EXEMPT FUND INVESTMENT PERFORMANCE
Change in Value of $10,000 from 1/31/87 to 1/31/97
Based on NAV and MOP for Class A Shares
<TABLE>
<CAPTION>
Label A B C
- -------------------------------------------------------------------------------------
Label COHTEF
<S> <C> <C> <C> <C>
1 Jan 31, 87 10000 9525 10000
2 4 9137.899 8703.85 9444
3 7 9448.136 8999.35 9771
4 10 8935.104 8510.688 9466
5 1 9874.824 9405.771 10205
6 4 9959.455 9486.381 10270
7 7 10157.43 9674.948 10458
8 10 10587.58 10084.67 10844
9 1 10884.26 10367.26 11080
10 4 10993.73 10471.53 11187
11 7 11370.76 10830.65 11732
12 10 11342.43 10803.67 11724
13 1 11450.99 10907.06 11970
14 4 11462.01 10917.56 11993
15 7 12084.36 11510.35 12545
16 10 12065.49 11492.38 12594
17 1 12505.39 11911.38 13076
18 4 12805.74 12197.46 13371
19 7 12981.32 12364.71 13640
20 10 13404.12 12767.43 14126
21 1 13755.84 13102.44 14502
22 4 13897.15 13237.04 14642
23 7 14715.59 14016.6 15514
24 10 14457.74 13771 15311
25 1 15050.23 14335.34 15928
26 4 15545.49 14807.08 16494
27 7 15869.4 15115.6 16886
28 10 16361.97 15584.78 17468
29 1 16731.69 15936.93 17881
30 4 15640.49 14897.57 16850
31 7 15995.49 15235.7 17202
32 10 15476.58 14741.44 16707
33 1 15998.21 15238.3 17245
34 4 16567.58 15780.62 17971
35 7 16815.16 16016.44 18557
36 10 17514.3 16682.37 19186
37 1 18266.16 17398.51 19840
38 4 17637.53 16799.74 19399
39 7 18038.27 17181.45 19781
40 10 18540.15 17659.5 20279
41 1/31/97 18768.76 17877.24 20603
</TABLE>
A hypothetical $10,000 investment in Class B shares made on August 4, 1992
(inception) at NAV would have been valued at $12,363 on January 31, 1997. The
same investment after deducting the applicable contingent deferred sales charge
(CDSC) would have grown to $12,163 on January 31, 1997.
The Lehman Brothers Municipal Bond Index is a broad-based, unmanaged index that
tracks the performance of the municipal bond market. Unlike mutual funds,
indexes are not investments, do not incur fees or expenses, and it is not
possible to invest in an index.
AVERAGE ANNUAL TOTAL RETURNS
As of December 31, 1996 (Most Recent Quarter End)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class A Shares Class B Shares
Inception 9/26/86 8/4/92
NAV MOP NAV w/CDSC
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1 YEAR 3.58% (1.34)% 2.80% (2.12)%
- --------------------------------------------------------------------------------
5 YEARS 6.49% 5.46% -- --
- --------------------------------------------------------------------------------
10 YEARS 6.83% 6.31% -- --
- --------------------------------------------------------------------------------
SINCE INCEPTION 6.76% 6.25% 4.97% 4.58%
- --------------------------------------------------------------------------------
</TABLE>
Past performance cannot predict future results. Returns and value of an
investment will vary, resulting in a gain or loss on sale. All results shown
assume reinvestment of distributions. Net asset value (NAV) returns do not
include sales charges or CDSC. Maximum offering price (MOP) returns include the
maximum sales charge of 4.75%. The CDSC returns reflect the maximum charge of 5%
for one year and 2% 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
JANUARY 31, 1997 (IN THOUSANDS)
<TABLE>
<CAPTION>
MUNICIPAL BONDS - 98.7% PAR VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
EDUCATION - 30.4%
Education - 7.6%
Miami University, Series 1993,
(a) 12/01/09 $ 400 $ 205
State Higher Educational Facilities Commission:
Case Western Reserve, Series 1994:
6.125% 10/01/15 1,505 1,608
6.250% 10/01/17 4,340 4,666
Ohio Dominican College, Series 1994,
6.625% 12/01/14 1,500 1,569
University of Cincinnati, Series 1996,
5.125% 06/01/24 750 692
------
8,740
------
School District General Obligation - 22.8%
Adams County Local School District,
Series 1995,
7.000% 12/01/15 3,000 3,540
Beavercreek Local School District,
Series 1996,
6.600% 12/01/15(b) 2,500 2,850
Brecksville-Broadview Heights School District,
Series 1996:
5.250% 12/01/21 1,500 1,436
6.500% 12/01/16 1,750 1,918
Cleveland, New Capital Projects,
Series 1993,
5.375% 09/01/11(b) 1,300 1,293
Columbus School District,
Series 1993,
(a) 12/01/05 2,400 1,554
Crooksville, Exempted Village School District,
7.375% 12/01/07 25 28
Eastern School District,
Brown & Highland Counties,
Series 1995,
6.250% 12/01/17 1,160 1,266
Fairborn, Library Improvement,
Series 1991,
7.200% 10/01/11 1,170 1,312
Gahanna-Jefferson City School District:
Series 1993:
(a) 12/01/10 840 398
(a) 12/01/11 795 355
</TABLE>
6
<PAGE>
<TABLE>
<CAPTION>
Investment Portfolio/January 31, 1997
- -------------------------------------------------------------------------------
<S> <C> <C>
Hilliard School District,
Series 1995 A,
(a) 12/01/12 $2,505 $ 1,040
Kings County Local School District,
Series 1995,
7.500% 12/01/16(b) 2,110 2,619
Lakota Local School District,
Series 1994,
7.000% 12/01/08(b) 1,000 1,171
Massillon City School District,
Series 1994:
(a) 12/01/08 1,000 550
(a) 12/01/09 1,000 514
(a) 12/01/11 1,000 453
Rocky River School District,
Series 1996,
(a) 12/01/11 1,115 495
Shaker Heights School District,
Series 1990 A,
7.100% 12/15/10 750 883
Strongsville School District,
Series 1996:
5.350% 12/01/11 800 805
6.500% 12/01/13 1,500 1,609
Tri-County North Local School
District,
8.125% 12/01/06 75 89
-------
26,178
-------
- --------------------------------------------------------------------------------
HEALTHCARE - 8.5%
Hospitals - 6.1%
Cuyahoga County, Meridian Health System:
Series 1991,
7.000% 08/15/23 500 528
Series 1995,
6.250% 08/15/24 1,000 1,028
Metropolitan Health System,
Series 1997,
5.625% 02/15/17(c) 1,000 993
Franklin County, Holy Cross Health System,
Series 1991,
6.750% 06/01/19 500 531
Green Springs, St. Francis Health Care Center,
Series 1994 A,
7.000% 05/15/04 700 751
</TABLE>
7
<PAGE>
<TABLE>
<CAPTION>
Investment Portfolio/January 31, 1997
- --------------------------------------------------------------------------------
MUNICIPAL BONDS - CONT. PAR VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
HEALTHCARE - CONT.
Hospitals - Cont.
Hamilton County,
Sisters of Charity Health Care System, Inc.,
Series 1992 A,
6.250% 05/15/14 $ 500 $ 524
Marion County, Community Hospital
Series 1996,
6.375% 05/15/11 1,000 1,002
Miami County, Upper Valley Medical Center, Inc.,
Series 1996 C,
6.000% 05/15/06 1,000 1,017
Montgomery County,
St. Elizabeth Medical Center, Series B 1,
8.100% 07/01/18 500 581
------
6,955
------
Nursing Home- 2.4%
Franklin County, Columbus West Health Care Co.,
Series 1986,
10.000% 09/01/16 100 95
Greene County,
Fairview Extended Care Service, Inc.,
Series 1990 A,
10.125% 01/01/11 220 249
Lucas County, Gericare, Inc.,
Series 1988 B,
10.500% 06/01/18 500 504
Marion County, United Church Homes, Inc.,
Series 1993,
6.375% 11/15/10 1,000 1,023
Montgomery County,
Grafton Oaks Limited Partners,
Series 1986,
9.750% 12/01/16 735 698
Westerville, Health Care & Retirement,
Corp. of America, Series 1989,
10.000% 01/01/08 205 209
------
2,778
------
- --------------------------------------------------------------------------------
HOUSING - 5.1%
Multi-family - 4.2%
Columbus-Beckley Housing Corp.,
Section 8 Assisted Project,
7.375% 10/15/21 1,308 1,335
Columbus-Norton Housing Corp.,
Section 8 Assisted Project,
7.375% 07/15/21 1,345 1,386
</TABLE>
8
<PAGE>
<TABLE>
<CAPTION>
Investment Portfolio/January 31, 1997
- --------------------------------------------------------------------------------
<S> <C> <C>
Montgomery-Conifers Housing
Development Corp.,
The Conifers Project, Series 1986,
8.450% 06/01/28 $1,000 $1,000
State Capital Corp. for Housing,
Series 1990 A,
7.500% 01/01/24 1,000 1,056
------
4,777
------
Single-family - 0.9%
State Housing Finance Agency:
Series A2, RIB (variable rate),
9.922% 03/24/31 500 544
Series 1994 B2,
6.700% 03/01/25 485 500
------
1,044
------
- --------------------------------------------------------------------------------
OTHER - 14.1%
Public Facilities Improvement - 5.7%
PR Commonwealth of Puerto Rico
Public Buildings Authority,
Series 1993 M, stepped coupon, (5.700% 07/01/98)
3.750% 07/01/16(d) 2,500 2,328
State Building Authority, William Green
Building, Series 1993 A,
4.750% 04/01/14 4,750 4,245
------
6,573
------
Refunded/Escrow/Special Obligation (e) - 8.4%
Canton,
7.875% 12/01/08 500 549
Cleveland School District,
Series 1991,
8.250% 12/01/08 500 589
Cuyahoga County:
Deaconess Hospital of Cleveland,
Series 1985 C,
7.450% 10/01/18 500 564
Jail Facilities,
Series 1991,
7.000% 10/01/13 1,000 1,123
Judson, Retirement Community, Series 1989,
8.875% 11/15/19 500 574
Delaware County,
Series 1990,
7.250% 11/01/10 250 280
</TABLE>
9
<PAGE>
<TABLE>
<CAPTION>
Investment Portfolio/January 31, 1997
- --------------------------------------------------------------------------------
MUNICIPAL BONDS - CONT. PAR VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
OTHER - CONT.
Refunded/Escrow/Special Obligation (e) - Cont.
Franklin County,
Holy Cross Health System Corp.,
Series 1990 B,
7.650% 06/01/10 $ 500 $ 558
Geauga County,
Geauga Hospital Association, Inc.,
Series 1988,
8.750% 11/15/13 600 621
Lake County, Water Systems,
Series 1987 2,
8.125% 12/01/10 1,000 1,057
Miami County,
Upper Valley Medical Center, Inc.,
Series 1987 A,
8.375% 05/01/13 500 516
Stark County, Doctor's Hospital, Inc.,
Series 1993,
6.000% 04/01/24 1,500 1,633
State Water Development Authority,
Series 1990 I,
6.000% 12/01/16 1,000 1,040
Toledo, Waterworks,
Series 1988 B,
7.750% 11/15/17 220 236
Warren, Series 1988,
8.625% 11/15/13 250 275
------
9,615
------
- --------------------------------------------------------------------------------
OTHER REVENUE - 6.7%
Manufacturing - 3.3%
Cuyahoga County,
Joy Technologies, Inc.,
Series 1992,
8.750% 09/15/07 500 555
State Economic Development Revenue Burrows,
Series 1991 6,
7.450% 06/01/03 880 977
State Water Development Authority,
North Star BHP Steel Co. Ltd.,
Series 1995,
6.450% 09/01/20 1,500 1,551
State, Sponge, Inc., Series 1989 5A,
8.375% 06/01/14 705 761
------
3,844
------
</TABLE>
10
<PAGE>
<TABLE>
<CAPTION>
Investment Portfolio/January 31, 1997
- --------------------------------------------------------------------------------
<S> <C> <C>
MISCELLANEOUS RETAIL - 0.5%
Lake County,
North Madison Properties,
Series 1993:
8.069% 09/01/01 $ 340 $ 345
8.819% 09/01/11 200 210
------
555
------
PETROLEUM REFINING - 2.9%
Hamilton, Gas Systems, Series 1993 A:
4.750% 10/15/23 1,750 1,507
5.000% 10/15/18 2,000 1,823
------
3,330
------
- --------------------------------------------------------------------------------
TAX-BACKED - 10.9%
GENERAL OBLIGATIONS - 7.7%
Adams County,
Human Services Building,
7.250% 12/01/11 500 539
Bellefontaine, Storm Water Utility, Series I,
7.050% 06/01/11 250 268
Cuyahoga County, Jail Facilities:
Series 1993 A:
(a) 10/01/12 1,000 424
5.250% 10/01/13 3,000 2,917
North Olmsted, Series 1996,
5.000% 12/01/16 2,500 2,316
Richland County, Series 1995,
6.950% 12/01/11 275 313
State:
Series 1992,
6.100% 08/01/12 380 410
Series 1994,
4.800% 08/01/13 1,000 924
VI Virgin Islands Public Finance Authority,
Series 1992 A,
7.000% 10/01/02 125 135
Warren County,
Series 1996,
6.250% 12/01/11 500 546
------
8,792
------
SALES & EXCISE TAX - 3.2%
Commonwealth of Puerto Rico
Highway & Transportation Authority:
Series W,
5.500% 07/01/09 410 421
</TABLE>
11
<PAGE>
<TABLE>
<CAPTION>
Investment Portfolio/January 31, 1997
- --------------------------------------------------------------------------------
MUNICIPAL BONDS - CONT. PAR VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
TAX-BACKED - CONT.
SALES & EXCISE TAX - CONT.
Series 1996 Y,
6.250% 07/01/14 $3,000 $3,236
------
3,657
------
- --------------------------------------------------------------------------------
TRANSPORTATION - 1.4%
AIRPORT - 0.5%
Cleveland Hopkins International Airport,
Series 1990 B,
7.250% 01/01/20 500 534
------
AIR TRANSPORTATION - 0.9%
Dayton, Emery Air Freight Facilities,
Series 1993 F,
6.050% 10/01/09 1,000 1,019
------
- --------------------------------------------------------------------------------
UTILITY - 21.6%
INDIVIDUAL POWER - 0.9%
State Air Quality Development Authority,
JMG Funding Ltd., Series 1994,
6.375% 01/01/29 1,000 1,049
------
INVESTOR OWNED - 0.5%
State Air Quality Development Authority,
Toledo Edison Co., Series 1990 B,
8.000% 05/15/19 500 530
------
MUNICIPAL ELECTRIC - 4.3%
Cleveland Public Power Co.,
Series 1994 A:
(a) 11/15/12 2,250 934
(a) 11/15/13 2,000 780
Cleveland, Series 1996 1,
5.000% 11/15/24 2,500 2,275
PR Puerto Rico Electric Power Authority,
Series 1989 O,
5.000% 07/01/12 1,000 925
------
4,914
------
WATER & SEWER - 15.9%
Akron, Series 1996,
5.850% 12/01/10 685 715
Butler County,
Series 1996 J,
5.125% 12/01/21 500 466
Cleveland, Waterworks,
Series 1993 G,
5.500% 01/01/21 8,750 8,706
</TABLE>
12
<PAGE>
<TABLE>
<CAPTION>
Investment Portfolio/January 31, 1997
- --------------------------------------------------------------------------------
<S> <C> <C>
Lakewood,
Water & Sewer Systems Revenue,
5.850% 07/01/20 $2,405 $ 2,480
Montgomery County,
Moraine-Beaver Creek Sewer System,
Series 1993,
5.300% 11/15/08 495 502
Toledo, Waterworks:
Series 1988 B,
7.750% 11/15/17 280 304
Series 1996,
6.250% 11/15/09 1,050 1,151
6.250% 11/15/10 1,130 1,230
PR Commonwealth of Puerto Rico
Aqueduct & Sewer Authority,
Series 1995:
6.250% 07/01/12 1,000 1,091
6.250% 07/01/13 1,500 1,626
--------
18,271
--------
TOTAL MUNICIPAL BONDS (cost of $108,615) 113,155
--------
OPTIONS - 0.0% CONTRACTS
- --------------------------------------------------------------------------------
March 97 Treasury Bond Put,
Strike price 110, Expiration 02/22/97
(cost of $84) 80 43
--------
TOTAL INVESTMENTS 98.7% (cost of $108,699)(f) 113,198
--------
SHORT-TERM OBLIGATONS - 1.5% PAR
- --------------------------------------------------------------------------------
VARIABLE RATE DEMAND NOTES (g)
FL Pinellas County Health Facilities
Series 1985,
3.700% 12/01/15 200 200
IL State Educational Facilities Authority,
3.450% 12/01/25 1,500 1,500
--------
TOTAL SHORT-TERM OBLIGATIONS 1,700
--------
OTHER ASSETS & LIABILITIES, NET - (0.2)% (234)
- --------------------------------------------------------------------------------
NET ASSETS - 100.0% $114,664
--------
</TABLE>
13
<PAGE>
Investment Portfolio/January 31, 1997
- --------------------------------------------------------------------------------
NOTES TO INVESTMENT PORTFOLIO:
- --------------------------------------------------------------------------------
(a) Zero coupon bond.
(b) These securities, or a portion thereof, with a total market value of
$6,839 are being used to collateralize the delayed delivery purchase
indicated in note (c) below and open futures contracts.
(c) This security has been purchased on a delayed delivery basis for
settlement at a future date beyond the customary settlement time.
(d) Shown parenthetically is the interest rate to be paid and the date the
Fund will begin accruing this rate.
(e) 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.
(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
January 31, 1997.
Short futures contracts open at January 31, 1997:
<TABLE>
<CAPTION>
Unrealized
Par value appreciation
covered by Expiration (depreciation)
Type contracts month at 01/31/97
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
Treasury Bond $ 2,000 March $ (19)
Municipal Bond 2,000 March 32
-------
$ 13
-------
</TABLE>
Acronym Name
----------- --------------------------
RIB Residual Interest Bond
See notes to financial statements.
14
<PAGE>
STATEMENT OF ASSETS & LIABILITIES
JANUARY 31, 1997
<TABLE>
<CAPTION>
(in thousands except for per share amounts and footnotes)
<S> <C> <C>
ASSETS
Investments at value (cost $108,699) $ 113,198
Short-term obligations 1,700
---------
114,898
Receivable for:
Interest $ 1,330
Fund shares sold 39
Other 71 1,440
--------- ---------
Total Assets 116,338
LIABILITIES
Payable for:
Investments purchased 986
Distributions 446
Fund shares repurchased 167
Variation margin on futures 35
Payable to Adviser 27
Accrued:
Deferred Trustees fees 2
Other 11
---------
Total Liabilities 1,674
---------
NET ASSETS $ 114,664
=========
Net asset value & redemption price per share -
Class A (65,190/8,880) $ 7.34
---------
Maximum offering price per share - Class A
($7.34/0.9525) $ 7.71(a)
---------
Net asset value & offering price per share -
Class B ($49,474/6,739) $ 7.34(b)
---------
COMPOSITION OF NET ASSETS
Capital paid in $ 112,295
Undistributed net investment income 86
Accumulated net realized loss (2,229)
Net unrealized appreciation on:
Investments 4,499
Open futures contracts 13
---------
$ 114,664
---------
</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.
15
<PAGE>
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED JANUARY 31, 1997
<TABLE>
<S> <C> <C>
(in thousands)
INVESTMENT INCOME
Interest $ 7,164
EXPENSES
Management fee $ 612
Service fee 162
Distribution fee - Class B 388
Transfer agent 198
Bookkeeping fee 52
Registration fee 13
Custodian fee 7
Audit fee 23
Trustees fee 17
Reports to shareholders 8
Legal fee 9
Other 9
-------
1,498
Fees waived by the Adviser (48) 1,450
------- -------
Net Investment Income 5,714
-------
NET REALIZED & UNREALIZED GAIN (LOSS) ON
PORTFOLIO POSITIONS
Net realized gain on:
Investments 758
Closed futures contracts 490
-------
Net Realized Gain 1,248
Net unrealized appreciation (depreciation)
during the period on:
Investments (4,373)
Open futures contracts 30
-------
Net Unrealized Loss (4,343)
-------
Net Loss (3,095)
-------
Net Increase in Net Assets from Operations $ 2,619
=======
</TABLE>
See notes to financial statements.
16
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year ended
(in thousands) January 31
-----------------------------
INCREASE (DECREASE) IN NET ASSETS 1997 1996
<S> <C> <C>
Operations:
Net investment income $ 5,714 $ 6,277
Net realized gain (loss) 1,248 (2,577)
Net unrealized appreciation (depreciation) (4,343) 12,969
--------- ---------
Net Increase from Operations 2,619 16,669
Distributions:
From net investment income - Class A (3,413) (3,859)
From net investment income - Class B (2,200) (2,516)
--------- ---------
(2,994) 10,294
--------- ---------
Fund Share Transactions:
Receipts for shares sold - Class A 1,915 3,598
Value of distributions reinvested - Class A 1,986 2,300
Cost of shares repurchased - Class A (11,388) (9,496)
--------- ---------
(7,487) (3,598)
--------- ---------
Receipts for shares sold - Class B 3,094 5,505
Value of distributions reinvested - Class B 1,333 1,561
Cost of shares repurchased - Class B (9,825) (8,889)
--------- ---------
(5,398) (1,823)
--------- ---------
Net Decrease from Fund Share
Transactions (12,885) (5,421)
--------- ---------
Total Increase (Decrease) (15,879) 4,873
NET ASSETS
Beginning of period 130,543 125,670
--------- ---------
End of period (including undistributed
and net of overdistributed net
investment income of $86 and $52,
respectively) $ 114,664 $ 130,543
========= =========
NUMBER OF FUND SHARES
Sold - Class A 264 500
Issued for distributions reinvested - Class A 274 319
Repurchased - Class A (1,565) (1,318)
--------- ---------
(1,027) (499)
--------- ---------
Sold - Class B 428 765
Issued for distributions reinvested - Class B 184 216
Repurchased - Class B (1,352) (1,228)
--------- ---------
(740) (247)
--------- ---------
</TABLE>
See notes to financial statements.
17
<PAGE>
NOTES TO FINANCIAL STATEMENTS
JANUARY 31, 1997
NOTE 1. ACCOUNTING POLICIES
ORGANIZATION: Colonial Ohio 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, by
pursuing current income exempt from federal and Ohio state personal income tax.
The Fund also provides opportunities for long-term appreciation from a portfolio
primarily invested in investment grade municipal bonds. 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.
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.
18
<PAGE>
Notes to Financial Statements/January 31, 1997
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.
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 2. 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:
<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>
19
<PAGE>
Notes to Financial Statements/January 31, 1997
NOTE 2. FEES AND COMPENSATION PAID TO AFFILIATES - CONT.
Effective January 1, 1996, the above management fee applicable to the
Trust was 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 FEE: 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
reimbursement for certain out of pocket expenses.
Effective January 1, 1997 and continuing through calendar year 1997, the
Transfer Agent fee will be reduced by 0.01% in cumulative monthly increments,
resulting in a decrease in the fee from 0.14% to 0.13% annually.
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 year ended January 31, 1997, the Fund has been
advised that the Distributor retained net underwriting discounts of $6,573 on
sales of the Fund's Class A shares and received contingent deferred sales
charges (CDSC) of $202,433 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.
20
<PAGE>
Notes to Financial Statements/January 31, 1997
EXPENSE LIMITS: The Adviser has agreed, until further notice, to waive fee 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 0.75% annually of the Fund's average net
assets.
Other: The Fund pays no compensation to its officers, all of whom are employees
of the Adviser.
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 3. PORTFOLIO INFORMATION
INVESTMENT ACTIVITY: During the year ended January 31, 1997, purchases and sales
of investments, other than short-term obligations were $36,579,698 and
$50,627,899, respectively.
Unrealized appreciation (depreciation) at January 31, 1997, based on cost of
investments for both financial statement and federal income tax purposes was
approximetely:
<TABLE>
<S> <C>
Gross unrealized appreciation $ 5,246,000
Gross unrealized depreciation (747,000)
------------
Net unrealized appreciation $ 4,499,000
============
</TABLE>
CAPITAL LOSS CARRYFORWARDS: At January 31, 1997, 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>
2004 $ 471,000
==========
</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.
21
<PAGE>
Notes to Financial Statements/January 31, 1997
NOTE 3. PORTFOLIO INFORMATION - CONT.
Other - Cont.
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 the 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 a position 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 variation margin recognized in the Fund's
Statement of Assets and Liabilities at any given time.
NOTE 4. 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 year ended January 31, 1997.
22
<PAGE>
FINANCIAL HIGHLIGHTS
Selected data for a share of each class outstanding throughout each
period are as follows:
<TABLE>
<CAPTION>
Year ended January 31
-----------------------------------------------------------------
1997 1996
Class A Class B Class A Class B
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Net asset value -
Beginning of period $ 7.510 $ 7.510 $ 6.930 $ 6.930
----------- ----------- ----------- -----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (a) 0.372 0.318 0.375 0.321
Net realized and
unrealized gain (loss) (0.179) (0.179) 0.585 0.585
----------- ----------- ----------- -----------
Total from Investment
Operations 0.193 0.139 0.960 0.906
----------- ----------- ----------- -----------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net
investment income (0.363) (0.309) (0.380) (0.326)
----------- ----------- ----------- -----------
Net asset value -
End of period $ 7.340 $ 7.340 $ 7.510 $ 7.510
=========== =========== =========== ===========
Total return (b)(c) 2.75% 1.98% 14.18% 13.34%
=========== =========== =========== ===========
RATIOS TO AVERAGE NET ASSETS
Expenses (d) 0.88% 1.63% 0.85% 1.60%
Net investment income (d) 5.09% 4.34% 5.19% 4.44%
Fees and expenses
waived or borne
by the Adviser (d) 0.04% 0.04% 0.11% 0.11%
Portfolio turnover 31% 31% 31% 31%
Net assets at end
of period (000) $ 65,190 $ 49,474 $ 74,383 $ 56,160
</TABLE>
(a) Net of fees and expenses waived or borne by the Adviser which amounted
to:
<TABLE>
<S> <C> <C> <C>
$ 0.003 $ 0.003 $ 0.008 $ 0.008
</TABLE>
(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) The benefits derived from custody credits and directed brokerage
arrangements had no impact. Prior years' ratios are net of benefits
received, if any.
23
<PAGE>
FINANCIAL HIGHLIGHTS - continued
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 $ 7.670 $ 7.670 $ 7.290 $ 7.290
----------- ----------- ----------- -----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (a) 0.401 0.348 0.406 0.351
Net realized and
unrealized gain (loss) (0.745) (0.745) 0.389 0.389
----------- ----------- ----------- -----------
Total from Investment
Operations (0.344) (0.397) 0.795 0.740
----------- ----------- ----------- -----------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.396) (0.343) (0.411) (0.356)
From capital paid in -- -- (0.004) (0.004)
----------- ----------- ----------- -----------
Total Distributions
Declared to Shareholders (0.396) (0.343) (0.415) (0.360)
----------- ----------- ----------- -----------
Net asset value -
End of period $ 6.930 $ 6.930 $ 7.670 $ 7.670
=========== =========== =========== ===========
Total return (c)(d) (4.38)% (5.10)% 11.17% 10.36%
=========== =========== =========== ===========
RATIOS TO AVERAGE NET ASSETS
Expenses 0.72% 1.47% 0.82% 1.57%
Net investment income 5.71% 4.96% 5.34% 4.59%
Fees and expenses waived
or borne by the Adviser 0.16% 0.16% 0.09% 0.09%
Portfolio turnover 33% 33% 3% 3%
Net assets at end of period (000) $ 72,123 $ 53,547 $ 79,394 $ 51,212
</TABLE>
(a) Net of fees and expenses waived or borne by the Adviser which amounted
to:
<TABLE>
<S> <C> <C> <C>
$ 0.011 $ 0.011 $ 0.007 $ 0.007
</TABLE>
(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.
24
<PAGE>
FINANCIAL HIGHLIGHTS - continued
Selected data for a share of each class outstanding throughout each period are
as follows:
<TABLE>
<CAPTION>
Year ended January 31
----------------------------------
1993
Class A Class B(b)
----------- -----------
<S> <C>
$ 7.090 $ 7.330
----------- -----------
0.444 0.185
0.204 (0.033)
----------- -----------
0.648 0.152
----------- -----------
(0.448) (0.192)
----------- -----------
(0.448) (0.192)
----------- -----------
$ 7.290 $ 7.290
=========== ===========
9.41% 0.85%(e)
=========== ===========
1.00% 1.75%(f)
6.18% 5.43%(f)
0.03% 0.03%(f)
13% 13%
$ 62,439 $ 7,293
$ 0.002 --
</TABLE>
Federal income tax information (unaudited)
All of the distributions will be treated as exempt income for federal income tax
purposes.
25
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE TRUSTEES OF COLONIAL TRUST V AND THE SHAREHOLDERS OF
COLONIAL OHIO TAX-EXEMPT FUND
In our opinion, the accompanying statement of assets and liabilities, including
the investment portfolio, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Colonial Ohio Tax-Exempt Fund (the
"Fund") (a series of Colonial Trust V) at January 31, 1997, the results of its
operations, the changes in its net assets and the financial highlights for the
periods indicated, in conformity with generally accepted accounting principles.
These financial statements and the financial highlights (hereafter referred to
as "financial statements") are the responsibility of the Fund's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of portfolio positions
at January 31, 1997 by correspondence with the custodian and brokers, and the
application of alternative auditing procedures where confirmation from brokers
were not received, provide a reasonable basis for the opinion expressed above.
PRICE WATERHOUSE LLP
Boston, Massachusetts
March 12, 1997
26
<PAGE>
SHAREHOLDER SERVICES AND TRANSFER AGENT
The Transfer Agent for Colonial Ohio Tax-Exempt Fund is:
Colonial Investors Service Center, Inc.
P.O. Box 1722
Boston, MA 02105-1722
1-800-345-6611
Colonial Ohio Tax-Exempt Fund mails one shareholder report to each shareholder
address. If you would like more than one report, please call Colonial at
1-800-426-3750 and additional reports will be sent to you.
This report has been prepared for shareholders of Colonial Ohio 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
objective and operating policies of the Fund.
27
<PAGE>
[COLONIAL MUTUAL FUNDS LOGO]
Mutual Funds for
Planned Portfolios
TRUSTEES
ROBERT J. BIRNBAUM
Retired (formerly Special Counsel, Dechert, Price & Rhoads; President and Chief
Operating Officer, New York Stock Exchange, Inc.)
TOM BLEASDALE
Retired (formerly Chairman of the Board and Chief Executive Officer, Shore Bank
& Trust Company)
LORA S. COLLINS
Attorney (formerly Attorney, Kramer, Levin, Naftalis, Nessen, Kamin & Frankel)
JAMES E. GRINNELL
Private Investor (formerly Senior Vice President - Operations, The Rockport
Company)
WILLIAM D. IRELAND, JR.
Retired (formerly Chairman of the Board, Bank of New England - Worcester)
RICHARD W. LOWRY
Private Investor (formerly Chairman and Chief Executive Officer, U.S. Plywood
Corporation)
WILLIAM E. MAYER
Partner; Development Capital, L.L.C. (formerly Dean, College of Business and
Management, University of Maryland; Dean, Simon Graduate School of Business,
University of Rochester; Chairman and Chief Executive Officer, CS First Boston
Merchant Bank; and President and Chief Executive Officer; The First Boston
Corporation)
JAMES L. MOODY, JR.
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) 1997
A Liberty Financial Company (NYSE: L)
One Financial Center, Boston, Massachusetts 02111-2621, 617-426-3750
OH-02/404D-0197 M (3/97)
