COLONIAL
OHIO TAX-EXEMPT FUND
[GRAPHIC]
Semiannual Report
July 31, 1997
----------------------------
NOT FDIC- MAY LOSE VALUE
INSURED NO BANK GUARANTEE
----------------------------
<PAGE>
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COLONIAL OHIO TAX-EXEMPT FUND HIGHLIGHTS
FEBRUARY 1, 1997 - JULY 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: "In recent years, the State of Ohio has
diversified its economic base beyond manufacturing into high technology, finance
and health care. In particular, we've been able to take advantage of the
consolidating health care industry by investing in bonds issued by
not-for-profit facilities that have then been acquired by for-profit
organizations."
- 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(1) $0.183 $0.156
SEC yields on 7/31/97(2) 4.24% 3.70%
Taxable-equivalent SEC yields(3) 7.59% 6.62%
Six-month total returns, assuming reinvestment 6.28% 5.88%
of all distributions and no sales charge or
contingent deferred sales charge (CDSC)
Net asset value per share on 7/31/97 $7.61 $7.61
</TABLE>
(1) A portion of the Fund's income may be subject to the alternative minimum
tax.
(2) The 30-day SEC yields on July 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 Advisor had not
waived or borne certain Fund expenses, SEC yields would have been 4.21% for
Class A shares and 3.67% for Class B shares.
(3) 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 (as of 7/31/97) TOP FIVE SECTORS (as of 7/31/97)
<S> <C> <C> <C>
AAA .......................... 58.0% General Obligations ......... 33.0%
AA ........................... 10.0% Water & Sewer ............... 11.0%
A ............................ 13.0% Education ................... 10.9%
BBB .......................... 9.5% Refunded .................... 7.4%
BB ........................... 1.5% State Appropriated .......... 6.3%
Non rated .................... 8.0%
</TABLE>
Because the Fund is actively managed, quality and sector weightings will change.
Quality breakdown and sector allocation are based on total net assets.
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2
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PRESIDENT'S MESSAGE
TO FUND SHAREHOLDERS
I am pleased to present the semiannual report for
Colonial Ohio Tax-Exempt Fund. This report reflects [PHOTO OF
on the investment environment for the six months HAROLD W. COGGER]
ended July 31, 1997.
The national economy continued to grow during the past six months. A firm job
market buoyed consumer confidence, resulting in strong retail, auto and housing
sales during the first quarter of 1997. The Federal Reserve Board raised
short-term interest rates in March for the first time in two years in response
to growing concern about future wage and price inflation. As interest rates
rose, bond prices declined.
Bond prices recovered during the second half of the period as consumer spending
declined, dampening investors' fears of potential inflation. At the same time,
industrial production, corporate capital spending and consumer income levels
continued to expand while inflation remained very low. This indicates that while
economic growth has slowed down, the economy is still on track to post gains for
1997 and carry the current economic expansion into its eighth year.
Municipal bond prices continued to outperform Treasury prices. A low supply of
new municipal issues combined with strong demand helped support these tax-exempt
bond prices.
Municipal bond prices also received a boost as the final balanced budget
agreement emerged from Congress. However, the investment environment for
municipal bonds was not without challenge. The yield advantage for investing in
lower quality municipal bonds continued to be historically low. This condition,
in combination with tight supply, created higher prices and lower yields for
many new investments.
The long-term benefits of investing in any municipal bond fund include tax-free
income and the opportunity to diversify your fixed-income portfolio. Colonial
Ohio Tax-Exempt Fund continues to offer you competitive tax-free income and
long-term total return potential as well as an opportunity to participate in
Ohio's economic expansion.
As always, we thank you for the opportunity to help meet your investment goals.
Respectfully,
/s/ Harold W. Cogger
- -------------------------------
Harold W. Cogger
President
September 15, 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.
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3
<PAGE>
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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.
WHY OUR PERFORMANCE WAS STRONG
When interest rates fall, bond prices rise. The reverse is also true: when
interest rates rise, bond prices fall. While this relationship holds true for
all bond portfolios, some portfolios are more sensitive than others. At
Colonial, we actively manage our portfolio's sensitivity to interest rates.
Because of our belief that interest rates were trending downward, we elected to
increase the portfolio's sensitivity to interest rates. Our portfolio was more
sensitive to interest rates than our industry benchmark. As a result, the
period's generally falling interest rate environment benefited us more than our
peers.
Another factor affecting performance is the decision on credit quality.
Typically, municipal bonds with lower ratings offer higher yields. However,
credit "spreads" -- the extra yield offered on lower quality credits -- remain
very tight. That is, we believe lower quality credits aren't paying enough
extra yield to justify the risk. As a result, we continue to focus on the higher
quality credits.
In addition to interest rate sensitivity and credit quality, another way we seek
to enhance the portfolio's performance is by buying securities with the right
maturities. Typically, a security with a longer maturity pays a higher yield.
However, we have noticed that beyond a 20-year maturity, securities don't offer
much additional yield. As a result, it isn't worth buying longer-maturity
securities, and taking the added price volatility inherent in a longer-term
security, without getting paid to do so.
STRONG TOTAL RETURNS AND TAX-EXEMPT YIELDS
For the six months ended July 31, 1997, the total return for Class A shares,
based on net asset value, was 6.28%. In comparison, the average Ohio municipal
bond fund, as measured by Lipper Analytical Services, Inc., was 5.38%. In
addition, the Fund outperformed its benchmark, the Lehman Brothers Municipal
Bond Index, which returned 5.86%
As of July 31, 1997, your Fund's Class A shares offered a tax-exempt yield of
4.24%. For those of you in the maximum federal and Ohio income tax bracket,
that's equivalent to a taxable yield of 7.59%.
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4
<PAGE>
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OHIO ECONOMY: A NEW EMPHASIS ON FINANCE AND HIGH TECH
In recent years, the State of Ohio has been very successful in diversifying its
base beyond economically cyclical manufacturing into high technology, finance
and health care. The State, which is rated AA by Moody's, is one of the nation's
leading exporters.
Recently, we have been purchasing bonds issued by health care institutions. Ohio
is a leader in the changing landscape of the health care industry, in which many
for-profit hospital chains are acquiring not-for-profit institutions. When such
a transaction takes place, the outstanding debt of the not-for-profit entity is
usually refunded, purchased at a premium, or the credit quality is enhanced. For
example, when A-rated Meridia Health merged with AA-rated Cleveland Clinic, we
were able to achieve some price appreciation on the improved credit.
Our outlook for the State of Ohio is very positive. In addition to an
increasingly diverse economy, the State's fiscal management and substantial cash
reserves should cushion it in the event of an economic downturn.
STILL ROOM FOR FURTHER APPRECIATION
Compared to the rate of inflation, interest rates are still relatively high.
Using the 30-year U.S. Treasury bond yield at July 31 of 6.30%, the "spread"
between this yield and the rate of inflation is at least 4 percentage points,
which is higher than normal. That's one reason why we believe interest rates
will eventually come down.
A second reason for lower interest rates is the declining federal budget
deficit. For fiscal 1997, which ends September 30, 1997, the budget deficit is
currently forecast to be about $35 billion. In comparison, the budget deficit
was nearly $300 billion in the early 1990s. With a smaller deficit, the
government will issue fewer Treasury bonds, and will need to pay lower interest
rates for what will become a more scarce commodity.
INCREASING YOUR TOTAL RETURN
With the strong economy producing the lowest inflation and unemployment in a
generation, interest rates have been going down over the last few months. If
this trend continues, its effect could be reflected in smaller dividend checks.
With inflation under control, current dividends continue to outpace the
inflation rate, and remain a source of tax-exempt income. The goal of the Fund
is to increase shareholders' total return, so while interest rates have gone
down, the net asset value per share of the Fund has been increasing. We will
continue to invest primarily in investment grade municipal bonds that provide
what we believe have the most potential for long-term appreciation.
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5
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COLONIAL OHIO TAX-EXEMPT FUND INVESTMENT PERFORMANCE
Change in Value of $10,000
from 7/31/87 to 7/31/97 Based on NAV and MOP for Class A Shares
[LINE GRAPH]
<TABLE>
<CAPTION>
Label NAV MOP LEHMAN
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Label COHTEF
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<S> <C> <C> <C> <C> <C>
1 Jul 31, 87 10000 9525 10000
2 Oct 31, 87 9457.002 9007.794 9687
3 Jan 31, 88 10451.61 9955.16 10444
4 Apr 30, 88 10541.19 10040.48 10510
5 Jul 31, 88 10750.72 10240.06 10703
6 Oct 31, 88 11206 10673.72 11098
7 Jan 31, 89 11520.01 10972.81 11339
8 Apr 30, 89 11635.88 11083.17 11449
9 Jul 31, 89 12034.93 11463.27 12006
10 Oct 31, 89 12004.94 11434.71 11998
11 Jan 31, 90 12119.84 11544.14 12250
12 Apr 30, 90 12131.5 11555.26 12273
13 Jul 31, 90 12790.21 12182.67 12838
14 Oct 31, 90 12770.23 12163.65 12888
15 Jan 31, 91 13235.82 12607.12 13382
16 Apr 30, 91 13553.72 12909.92 13684
17 Jul 31, 91 13739.56 13086.93 13959
18 Oct 31, 91 14187.06 13513.17 14457
19 Jan 31, 92 14559.32 13867.75 14842
20 Apr 30, 92 14708.88 14010.21 14984
21 Jul 31, 92 15575.12 14835.31 15877
22 Oct 31, 92 15302.21 14575.36 15670
23 Jan 31, 93 15929.31 15172.67 16301
24 Apr 30, 93 16453.5 15671.96 16880
25 Jul 31, 93 16796.33 15998.5 17281
26 Oct 31, 93 17317.68 16495.09 17876
27 Jan 31, 94 17708.98 16867.81 18299
28 Apr 30, 94 16554.05 15767.73 17245
29 Jul 31, 94 16929.78 16125.62 17605
30 Oct 31, 94 16380.56 15602.48 17097
31 Jan 31, 95 16932.67 16128.37 17648
32 Apr 30, 95 17535.29 16702.36 18392
33 Jul 31, 95 17797.33 16951.96 18991
34 Oct 31, 95 18537.3 17656.78 19634
35 Jan 31, 96 19333.08 18414.76 20305
36 Apr 30, 96 18667.73 17781.01 19853
37 Jul 31, 96 19091.88 18185.02 20244
38 Oct 31, 96 19623.08 18690.98 20754
39 Jan 31, 97 19864.59 18921.03 21085
40 Apr 30, 97 19868.79 18925.03 21170
41 Jul 31, 97 21111.24 20108.45 22319
</TABLE>
A hypothetical $10,000 investment in Class B shares made on August 4, 1992
(inception) at NAV would have been valued at $13,090 on July 31, 1997. The same
investment after deducting the applicable contingent deferred sales charge
(CDSC) would have grown to $12,890 on July 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.
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS
As of June 30, 1997 (Most Recent Quarter End)
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Class A Shares Class B Shares
Inception 9/26/86 8/4/92
- --------------------------------------------------------------------------------
<C> <C> <C> <C> <C>
NAV MOP NAV w/CDSC
- --------------------------------------------------------------------------------
1 year 8.15% 3.01% 7.35% 2.35%
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5 years 6.17 5.14 -- --
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10 years 7.54 7.01 -- --
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Since inception 6.70 6.22 4.94 4.60
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</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.
On August 1, 1997, the Fund began offering Class C shares.
Performance for different share classes will vary based on differences in sales
charges and fees associated with each class.
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6
<PAGE>
INVESTMENT PORTFOLIO
JULY 31, 1997 (UNAUDITED, IN THOUSANDS)
<TABLE>
<CAPTION>
MUNICIPAL BONDS - 99.5% PAR VALUE
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
EDUCATION - 41.6%
EDUCATION - 10.9%
Miami University, Series 1993,
(a) 12/01/09 $ 400 $ 224
State Higher Educational Facilities Commission:
Case Western Reserve, Series 1994:
6.125% 10/01/15 1,505 1,704
6.250% 10/01/17 4,340 4,958
Ohio Dominican College, Series 1994,
6.250% 12/01/14 1,500 1,618
University of Cincinnati:
Series AD,
5.000% 06/01/17 2,000 1,967
Series AB,
5.375% 06/01/20 1,750 1,774
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12,245
-------
LOCAL GENERAL OBLIGATIONS - 29.1%
Adams County:
Local School District, Series 1995,
7.000% 12/(b)15 3,000 3,724
Human Services Building,
7.250% 12/01/11 500 551
Beavercreek Local School District,
Series 1996,
6.600% 12/01/15 2,500 2,966
Bellefontaine, Storm Water Utility,
Series I,
7.050% 06/01/11 250 271
Brecksville-Broadview Heights School District,
Series 1996:
5.250% 12/01/21 1,750 1,988
6.500% 12/01/16 1,500 1,521
Columbus School District,
Series 1993,
(a) 12/1/2005(b) 2,400 1,641
Crooksville,
Exempt Village School District,
7.375% 12/01/07 25 29
Cuyahoga County, Jail Facilities,
Series 1993:
(a) 10/01/12 1,000 474
5.250% 10/01/13 3,000 3,094
</TABLE>
7
<PAGE>
<TABLE>
<CAPTION>
Investment Portfolio/July 31, 1997
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MUNICIPAL BONDS - CONT. PAR VALUE
----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
EDUCATION - CONT.
LOCAL GENERAL OBLIGATIONS - CONT.
Eastern School District, Brown & Highland
Counties, Series 1995,
6.250% 12/01/17 $1,160 $ 1,338
Fairborn, Library Improvement,
Series 1991,
7.200% 10/01/11 1,170 1,334
Forest Hills School District,
6.000% 12/01/11 1,600 1,760
Gahanna-Jefferson City School District,
Series 1993:
(a) 12/01/10 840 435
(a) 12/01/11 795 390
Hilliard School District,
Series 1995 A,
(a) 12/01/12 2,505 1,149
Kings County Local School District,
Series 1995,
7.500% 12/01/16 2,110 2,756
Massillon City School District,
Series 1994:
(a) 12/01/08 1,000 591
(a) 12/01/09 1,000 558
(a) 12/01/11 1,000 496
North Olmsted, Series 1996,
5.000% 12/01/16 1,500 1,493
Richland County, Series 1995,
6.950% 12/01/11 275 323
Rocky River School District,
Series 1996,
(a) 12/01/11 1,115 544
Shaker Heights School District,
Series 1990 A,
7.100% 12/15/10 750 922
Strongsville, Series 1996,
6.500% 12/01/13 1,500 1,684
Tri-County North Local School
District,
8.125% 12/01/06 75 90
Warren County, Series 1996,
6.250% 12/01/11 500 571
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32,693
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STUDENT LOAN - 1.6%
Cincinnati Student Loan Funding Corporation,
Series A,
6.150% 08/01/10 1,775 1,833
-------
</TABLE>
8
<PAGE>
<TABLE>
<CAPTION>
Investment Portfolio/July 31, 1997
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<S> <C> <C> <C> <C>
HEALTHCARE - 7.9%
HOSPITAL - 5.5%
Cuyahoga County,
Meridian Health Systems:
Series 1991,
7.000% 08/15/23 $ 500 $ 537
Series 1995,
6.250% 08/15/24 1,000 1,073
Franklin County,
Holy Cross Health System,
Series 1991,
6.750% 06/01/19 500 543
Green Springs,
St. Francis Health Care Center,
Series 1994 A,
7.000% 05/15/04 700 767
Hamilton County,
Sisters of Charity Health Care System, Inc.,
Series 1992 A,
6.250% 05/15/14 500 538
Marion County, Community Hospital,
Series 1996,
6.375% 05/15/11 1,000 1,058
Miami County,
Upper Valley Medical Center, Inc.,
Series 1996 C,
6.000% 05/15/06 1,000 1,051
Montgomery County,
St. Elizabeth Medical Center,
Series B 1,
8.100% 07/01/18 500 598
------
6,165
------
NURSING HOME - 2.4%
Greene County,
Fairview Extended Care Service, Inc.,
Series 1990 A,
10.125% 01/01/11 220 258
Lucas County, Gericare, Inc.,
Series 1988 B,
10.500% 06/01/18 500 510
Marion County,
United Church Homes, Inc.,
Series 1993,
6.375% 11/15/10 1,000 1,050
</TABLE>
9
<PAGE>
<TABLE>
<CAPTION>
Investment Portfolio/July 31, 1997
----------------------------------------------------------------------------------------
MUNICIPAL BONDS - CONT. PAR VALUE
----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
HEALTHCARE - CONT.
NURSING HOME - CONT.
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% 01/01/08 205 207
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2,723
-------
----------------------------------------------------------------------------------------
HOUSING - 5.1%
MULTI-FAMILY - 3.3%
Columbus-Beckley Housing Corp.,
Section 8 Assisted Project,
7.375% 10/15/21 1,298 1,326
Columbus-Norton Housing Corp.,
Section 8 Assisted Project,
7.375% 07/15/21 1,335 1,375
State Capital Corp. for Housing,
Series 1990 A,
7.500% 01/01/24 1,000 1,061
-------
3,762
-------
SINGLE-FAMILY - 1.8%
State Housing Finance Agency:
Series A2, RIB (variable rate),
9.466% 03/24/31 400 449
Series 1994 A-1,
6.700% 03/01/25 485 513
Series 1997 A-1,
6.050% 09/01/17 1,000 1,040
-------
2,002
-------
----------------------------------------------------------------------------------------
OTHER - 9.7%
LOCAL APPROPRIATED - 1.8%
Cleveland Stadium Project Corp.,
5.250% 11/15/12 2,000 2,047
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REFUNDED/ESCROW/SPECIAL OBLIGATIONS (C) - 7.9%
Canton,
7.875% 12/01/08 500 539
Cleveland School District,
Series 1991,
8.250% 12/01/08 500 591
</TABLE>
10
<PAGE>
<TABLE>
<CAPTION>
Investment Portfolio/July 31, 1997
----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Cuyahoga County:
Deaconess Hospital of Cleveland,
Series 1985 C,
7.450% 10/01/18 $ 500 $ 563
Jail Facilities,
Series 1991,
7.000% 10/01/13 1,000 1,126
Judson Retirement Community,
Series 1989,
8.875% 11/15/19 500 566
Delaware County,
Series 1990,
7.250% 11/01/10 250 279
Franklin County,
Holy Cross Health System Corp.,
Series 1990 B,
7.650% 06/01/10 500 556
Lake County, Water Systems,
Series 1987 2,
8.125% 12/01/10 1,000 1,034
Stark County,
Doctor's Hospital, Inc.,
Series 1993,
6.000% 04/01/24 1,500 1,665
State Water Development Authority,
Series 1990 I,
6.000% 12/01/16 1,000 1,091
Toledo, Waterworks,
Series 1988 B,
7.750% 11/15/17 500 533
Warren County,
Series 1988,
8.625% 11/15/13 250 270
------
8,813
------
----------------------------------------------------------------------------------------
OTHER REVENUE - 5.3%
MANUFACTURING - 3.4%
Cuyahoga County,
Joy Technologies, Inc.,
Series 1992,
8.750% 09/15/07 500 574
</TABLE>
11
<PAGE>
<TABLE>
<CAPTION>
Investment Portfolio/July 31, 1997
----------------------------------------------------------------------------------------
MUNICIPAL BONDS - CONT. PAR VALUE
----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OTHER REVENUE - CONT.
MANUFACTURING - CONT.
State Burrows Paper Corp.,
Series 1991 6,
7.450% 06/01/03 $ 830 $ 928
State Water Development Authority,
North Star BHP Steel Co. Ltd.,
Series 1995,
6.450% 09/01/20 1,500 1,618
State, Sponge, Inc., Series 1989 5A,
8.375% 06/01/14 685 738
-------
3,858
-------
MISCELLANEOUS RETAIL - 0.5%
Lake County, North Madison Properties,
Series 1993:
8.069% 09/01/01 315 324
8.819% 09/01/11 200 215
-------
539
-------
PETROLEUM REFINING - 1.4%
Hamilton, Gas Systems,
Series 1993 A,
4.750% 10/15/23 1,750 1,610
-------
----------------------------------------------------------------------------------------
TAX-BACKED - 13.3%
SALES & EXCISE TAX - 3.1%
PR Commonwealth of Puerto Rico
Highway Transportation Authority,
Series 1996Y,
6.250% 07/01/14 3,000 3,458
-------
STATE APPROPRIATED - 6.3%
State Building Authority,
William Green Building,
Series 1993 A,
4.750% 04/01/14 4,750 4,501
PR Commonwealth of Puerto Rico
Public Buildings Authority,
Series 1993 M, stepped coupon, (5.700% 07/01/98),
3.750% 7/1/2016(d) 2,500 2,506
-------
7,007
-------
STATE GENERAL OBLIGATIONS - 3.9%
OH State:
Series 1992,
6.100% 08/01/12 380 431
</TABLE>
12
<PAGE>
<TABLE>
<CAPTION>
Investment Portfolio/July 31, 1997
----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Series 1994,
4.800% 08/01/13 $1,000 $ 991
PR Commonwealth of Puerto Rico
Aqueduct & Sewer Authority,
Series 1995:
6.250% 07/01/12 1,000 1,151
6.250% 07/01/13 1,500 1,729
VI Virgin Islands Public Finance
Authority,
Series 1992 A,
7.000% 10/01/02 125 136
------
4,438
------
----------------------------------------------------------------------------------------
TRANSPORTATION - 1.6%
AIR TRANSPORTATION - 0.9%
Dayton, Emery Air Freight Facilities,
Series 1993 F,
6.050% 10/01/09 1,000 1,045
------
AIRPORT - 0.5%
Cleveland Hopkins International Airport,
Series 1990 B,
7.250% 01/01/20 500 536
------
TRANSPORTATION - 0.2%
Cleveland, Cuyahoga County, Port Authority
Revenue, C & P Docks,
6.000% 03/01/07 250 251
------
----------------------------------------------------------------------------------------
UTILITY - 15.0%
INDIVIDUAL POWER PRODUCER - 1.0%
State Air Quality Development Authority,
JMG Funding Ltd., Series 1994,
6.375% 01/01/29 1,000 1,074
------
INVESTOR OWNED - 0.5%
State Air Quality Development Authority,
Toledo Edison Co.,
Series 1990 B,
8.000% 05/15/19 500 538
------
MUNICIPAL ELECTRIC - 2.5%
Cleveland Public Power Co.,
Series 1994 A:
(a) 11/15/12 2,250 1,027
(a) 11/15/13 2,000 862
</TABLE>
13
<PAGE>
<TABLE>
<CAPTION>
Investment Portfolio/July 31, 1997
----------------------------------------------------------------------------------------
MUNICIPAL BONDS - CONT. PAR VALUE
----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
UTILITY - CONT.
MUNICIPAL ELECTRIC - CONT.
PR Puerto Rico Electric Power Authority,
Series 1989 O,
5.000% 07/01/12 $1,000 $ 970
--------
2,859
--------
WATER & SEWER - 11.0%
Cleveland, Waterworks,
Series 1993 G,
5.500% 01/01/21 7,000 7,341
Lakewood,
Water & Sewer Systems Revenue,
5.850% 07/01/20 2,405 2,633
Toledo Waterworks,
Series 1996:
6.250% 11/15/09 1,050 1,184
6.250% 11/15/10 1,130 1,264
--------
12,422
--------
TOTAL MUNICIPAL BONDS (cost of $103,233) 111,918
--------
OPTIONS - 0.0% CONTRACTS
--------------------------------------------------------------------------------------
September 97 Treasury Bond Put,
Strike price 109, Expiration 08/23/97
(cost of $20) 50 1
--------
TOTAL INVESTMENTS - 99.5% (cost of $103,253)(e) 111,919
--------
OTHER ASSETS & LIABILITIES, NET - 0.5% 544
--------------------------------------------------------------------------------------
NET ASSETS - 100.0% $112,463
--------
NOTES TO INVESTMENT PORTFOLIO:
--------------------------------------------------------------------------------------
</TABLE>
(a) Zero coupon bond.
(b) These securities, or a portion thereof, with a total market value
of $5,365 are being used to collateralize open futures contracts.
(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) Shown parenthetically is the interest rate to be paid and the date
the Fund will begin accruing this rate.
(e) Cost for federal income tax purposes is the same.
14
<PAGE>
<TABLE>
<CAPTION>
Investment Portfolio/July 31, 1997
-------------------------------------------------------------------------------------
NOTES TO INVESTMENT PORTFOLIO-CONT.
-----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Short futures contracts open at July 31, 1997:
Par value Unrealized
covered by Expiration depreciation
Type contracts month at 07/31/97
-----------------------------------------------------------------------------------
Municipal Bond $3,100 September $ 131
Municipal Bond $ 900 December 4
-----
$ 135
-----
Acronym Name
----------- ----------------------
RIB Residual Interest Bond
</TABLE>
See notes to financial statements
15
<PAGE>
STATEMENT OF ASSETS & LIABILITIES
JULY 31, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
<S> <C> <C>
(in thousands except for per share amounts and footnotes)
ASSETS
Investments at value (cost $103,253) $111,919
Receivable for:
Interest $1,309
Fund shares sold 5
Expense reimbursement due from Adviser 6
Other 7 1,327
------ --------
Total Assets 113,246
LIABILITIES
Payable for:
Distributions 425
Fund shares repurchased 198
Payable to custodian bank 143
Variation margin on futures 4
Accrued:
Deferred Trustees fees 3
Other 10
------
Total Liabilities 783
--------
NET ASSETS $112,463
========
Net asset value & redemption price per share -
Class A ($64,396/8,458) $ 7.61
========
Maximum offering price per share - Class A
($7.61/0.9525) $ 7.99(a)
========
Net asset value & offering price per share -
Class B ($48,067/6,313) $ 7.61(b)
========
COMPOSITION OF NET ASSETS
Capital paid in $106,049
Undistributed net investment income 94
Accumulated net realized loss (2,211)
Net unrealized appreciation (depreciation) on:
Investments 8,666
Open futures contracts (135)
--------
$112,463
========
</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.
16
<PAGE>
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JULY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
<S> <C> <C>
(in thousands)
INVESTMENT INCOME
Interest $ 3,278
EXPENSES
Management fee $ 280
Service fee 80
Distribution fee - Class B 181
Transfer agent 92
Bookkeeping fee 24
Registration fee 6
Custodian fee 4
Audit fee 11
Trustees fee 10
Reports to shareholders 4
Legal fee 4
Other 4
------
700
Fees waived by the Adviser (20) 680
------ --------
Net Investment Income 2,598
--------
NET REALIZED & UNREALIZED GAIN (LOSS) ON PORTFOLIO POSITIONS
Net realized gain (loss) on:
Investments 299
Closed futures contracts (268)
------
Net Realized Gain 31
Net unrealized appreciation (depreciation)
during the period on:
Investments 4,167
Open futures contracts (148)
------
Net Unrealized Gain 4,019
--------
Net Gain 4,050
--------
Net Increase in Net Assets from Operations $ 6,648
--------
</TABLE>
See notes to financial statements.
17
<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 1997 1997
<S> <C> <C>
Operations:
Net investment income $ 2,598 $ 5,714
Net realized gain 31 1,248
Net unrealized appreciation (depreciation) 4,019 (4,343)
-------- --------
Net Increase from Operations 6,648 2,619
Distributions:
From net investment income - Class A (1,590) (3,413)
From net investment income - Class B (1,019) (2,200)
-------- --------
4,039 (2,994)
-------- --------
Fund Share Transactions :
Receipts for shares sold - Class A 661 1,915
Value of distributions reinvested - Class A 923 1,986
Cost of shares repurchased - Class A (4,694) (11,388)
-------- --------
(3,110) (7,487)
-------- --------
Receipts for shares sold - Class B 1,058 3,094
Value of distributions reinvested - Class B 614 1,333
Cost of shares repurchased - Class B (4,802) (9,825)
-------- --------
(3,130) (5,398)
-------- --------
Net Decrease from Fund Share
Transactions (6,240) (12,885)
-------- --------
Total Decrease (2,201) (15,879)
NET ASSETS
Beginning of period 114,664 130,543
-------- --------
End of period (including undistributed
net investment income of $94 and $86,
respectively) $112,463 $114,664
======== ========
NUMBER OF FUND SHARES
Sold - Class A 90 264
Issued for distributions reinvested - Class A 126 274
Repurchased - Class A (638) (1,565)
-------- --------
(422) (1,027)
-------- --------
Sold - Class B 144 428
Issued for distributions reinvested - Class B 84 184
Repurchased - Class B (654) (1,352)
-------- --------
(426) (740)
-------- --------
</TABLE>
See notes to financial statements.
18
<PAGE>
NOTES TO FINANCIAL STATEMENTS
JULY 31, 1997 (UNAUDITED)
NOTE 1. INTERIM FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
In the opinion of management of Colonial Ohio 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, 1997, and the results of its
operations, the changes in its net assets and the financial highlights for the
six months then ended.
NOTE 2. ACCOUNTING POLICIES
- --------------------------------------------------------------------------------
ORGANIZATION: The Fund is a 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.
19
<PAGE>
Notes to Financial Statements/July 31, 1997
- --------------------------------------------------------------------------------
NOTE 2. ACCOUNTING POLICIES - CONT.
- --------------------------------------------------------------------------------
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.
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), and realized and unrealized
gains (losses), are allocated to each class proportionately on a daily basis for
purposes of determining the net asset value of each class.
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.
20
<PAGE>
Notes to Financial Statements/July 31, 1997
- --------------------------------------------------------------------------------
NOTE 3. FEES AND COMPENSATION PAID TO AFFILIATES
- --------------------------------------------------------------------------------
MANAGEMENT FEE: Colonial Management Associates, Inc. (the Adviser) is the
investment Adviser of the Fund and furnishes accounting and other services and
office facilities for a monthly fee based on each Fund's pro rata portion of the
combined average net assets of Trust V as follows:
<TABLE>
<CAPTION>
Average Net Assets Annual Fee Rate
------------------ ---------------
<S> <C>
First $2 billion 0.50%
Over $2 billion 0.45%
</TABLE>
BOOKKEEPING FEE: The Adviser provides bookkeeping and pricing services for
$27,000 per year plus 0.035% of the Fund's average net assets over $50 million.
TRANSFER AGENT 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 six months ended July 31, 1997, the Fund has
been advised that the Distributor retained net underwriting discounts of $2,505
on sales of the Fund's Class A shares and received contingent deferred sales
charges (CDSC) of $93,845 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>
21
<PAGE>
Notes to Financial Statements/July 31, 1997
- --------------------------------------------------------------------------------
NOTE 3. FEES AND COMPENSATION PAID TO AFFILIATES - CONT.
- --------------------------------------------------------------------------------
The CDSC and the fees received from the 12b-1 plan are used principally as
repayment to the Distributor for amounts paid by the Distributor to dealers who
sold such shares.
EXPENSE LIMITS: The Adviser has agreed, until further notice, to waive fees and
bear certain Fund expenses to the extent that total expenses (exclusive of
service and distribution fees, brokerage commissions, interest, taxes, and
extraordinary expenses, if any) exceed 0.75% 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 4. PORTFOLIO INFORMATION
- --------------------------------------------------------------------------------
INVESTMENT ACTIVITY: During the six months ended July 31, 1997, purchases and
sales of investments, other than short-term obligations were $17,983,524 and
$23,956,730, respectively.
Unrealized appreciation (depreciation) at July 31, 1997, based on cost of
investments for both financial statement and federal income tax purposes was:
<TABLE>
<S> <C>
Gross unrealized appreciation $ 8,750,905
Gross unrealized depreciation (84,421)
-----------
Net unrealized appreciation $ 8,666,484
===========
</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:
<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.
22
<PAGE>
Notes to Financial Statements/July 31, 1997
- --------------------------------------------------------------------------------
OTHER: There are certain risks arising from geographic concentration in any
state. Certain revenue or tax related events in a state may impair the ability
of certain issuers of municipal securities to pay principal and interest on
their obligations.
The Fund may focus its investments in certain industries, subjecting it to
greater risk than a fund that is more diversified.
The Fund 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 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 period ended July 31, 1997.
23
<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
---------------------- -------------------
1997 1997
Class A Class B Class A Class B
------- ------- ------- -------
<S> <C> <C> <C> <C>
Net asset value -
Beginning of period $ 7.340 $ 7.340 $ 7.510 $ 7.510
------- ------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (a) 0.183 0.156 0.372 0.318
Net realized and
unrealized gain (loss) 0.270 0.270 (0.179) (0.179)
------- ------- ------- -------
Total from Investment
Operations 0.453 0.426 0.193 0.139
------- ------- ------- -------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net
investment income (0.183) (0.156) (0.363) (0.309)
------- ------- ------- -------
Net asset value -
End of period $ 7.610 $ 7.610 $ 7.340 $ 7.340
======= ======= ======= =======
Total return (b)(c) 6.28%(d) 5.88%(d) 2.75% 1.98%
======= ======= ======= =======
RATIOS TO AVERAGE NET ASSETS
Expenses 0.89%(f)(e) 1.64%(f)(e) 0.88%(e) 1.63%(e)
Net investment income 4.96%(f)(e) 4.21%(f)(e) 5.09%(e) 4.34%(e)
Fees and expenses
waived or borne
by the Adviser (e) 0.04%(f)(e) 0.04%(f)(e) 0.04%(e) 0.04%(e)
Portfolio turnover 16%(d) 16%(d) 31% 31%
Net assets at end
of period (000) $64,396 $48,067 $65,190 $49,474
(a) Net of fees and expenses waived or borne by the Adviser which
amounted to:
$ 0.001 $ 0.001 $ 0.003 $ 0.003
(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>
24
<PAGE>
FINANCIAL HIGHLIGHTS - CONTINUED
<TABLE>
<CAPTION>
Year ended January 31
------------------------------------------------
1996 1995
Class A Class B Class A Class B
------- ------- ------- -------
<S> <C> <C> <C>
$ 6.930 $ 6.930 $ 7.670 $ 7.670
------- ------- ------- -------
0.375 0.321 0.401 0.348
0.585 0.585 (0.745) (0.745)
------- ------- ------- -------
0.960 0.906 (0.344) (0.397)
------- ------- ------- -------
(0.380) (0.326) (0.396) (0.343)
------- ------- ------- -------
$ 7.510 $ 7.510 $ 6.930 $ 6.930
======= ======= ======= =======
14.18% 13.34% (4.38)% (5.10)%
======= ======= ======= =======
0.85%(e) 1.60%(e) 0.72% 1.47%
5.19%(e) 4.44%(e) 5.71% 4.96%
0.11%(e) 0.11%(e) 0.16% 0.16%
31% 31% 33% 33%
$74,383 $56,160 $72,123 $53,547
$ 0.008 $ 0.008 $ 0.011 $ 0.011
</TABLE>
25
<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
-----------------------------------------
1994 1993
Class A Class B Class A Class B(b)
------- ------- ------- -------
<S> <C> <C> <C> <C>
Net asset value -
Beginning of period $ 7.290 $ 7.290 $ 7.090 $7.330
------- ------- ------- ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (a) 0.406 0.351 0.444 0.185
Net realized and
unrealized gain (loss) 0.389 0.389 0.204 (0.033)
------- ------- ------- ------
Total from Investment
Operations 0.795 0.740 0.648 0.152
------- ------- ------- ------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.411) (0.356) (0.448) (0.192)
From capital paid in (0.004) (0.004) -- --
------- ------- ------- ------
Total Distributions
Declared to Shareholders (0.415) (0.360) (0.448) (0.192)
------- ------- ------- ------
Net asset value -
End of period $ 7.670 $ 7.670 $ 7.290 $7.290
======= ======= ======= ======
Total return (c)(d) 11.17% 10.36% 9.41% 0.85%(e)
======= ======= ======= ======
RATIOS TO AVERAGE NET ASSETS
Expenses 0.82% 1.57% 1.00% 1.75%(f)
Net investment income 5.34% 4.59% 6.18% 5.43%(f)
Fees and expenses waived
or borne by the Adviser 0.09% 0.09% 0.03% 0.03%(f)
Portfolio turnover 3% 3% 13% 13%
Net assets at end of period (000) $79,394 $51,212 $62,439 $7,293
</TABLE>
(a) Net of fees and expenses waived or borne by the Adviser which amounted
to:
$ 0.007 $ 0.007 $ 0.002 --
(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.
26
<PAGE>
IMPORTANT INFORMATION ABOUT THIS REPORT
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] COLONIAL
MUTUAL FUNDS
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.
Retired (formerly Chairman of the Board and 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
Retired Partner, Peat Marwick Main & Co. (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 [Copyright] 1997
A Liberty Financial Company (NYSE: L)
One Financial Center, Boston, Massachusetts 02111-2621, 617-426-3750
OH-03/988D-0797 M (9/97)
- --------------------------------------------------------------------------------
<PAGE>
