<PAGE>
COLONIAL
MICHIGAN TAX-EXEMPT FUND
FPO
ANNUAL REPORT
JANUARY 31, 1997
NOT FDIC- | MAY LOSE VALUE
INSURED | NO BANK GUARANTEE
<PAGE>
COLONIAL MICHIGAN TAX-EXEMPT FUND HIGHLIGHTS
FEBRUARY 1, 1996 - JANUARY 31, 1997
INVESTMENT OBJECTIVE: Colonial Michigan 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 Michigan income tax and opportunities for
long-term appreciation from a portfolio primarily invested in investment grade
municipal bonds. Fund shares are also intended to be exempt from the Michigan
intangibles tax.
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 combined with low inflation caused the
bond market to cycle up and down over the period. However, Michigan's strong and
well-managed economy positions the Fund to enjoy good performance in the months
ahead." -- Brian Hartford
COLONIAL MICHIGAN 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* $ 0.356 $ 0.304
SEC yields on 1/31/97** 4.59% 4.06%
Taxable-equivalent SEC yields*** 7.95% 7.03%
12-month total returns, assuming 2.35% 1.58%
reinvestment of all distributions and no
sales charge or contingent deferred
sales charge (CDSC)
Net asset value per share on 1/31/97 $ 6.93 $ 6.93
</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 4.50% for Class A
shares and 3.97% for Class B shares.
***Taxable-equivalent SEC yields are based on the maximum effective 42.3%
federal and Michigan 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 would
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 ..................... 51.0% School General Obligations ...... 16.4%
AA ...................... 12.9% Hospitals ....................... 16.2%
A ....................... 22.0% Water & Sewer ................... 8.9%
BBB ..................... 7.2% Public Improvement .............. 8.7%
Non-rated ............... 4.9% Investor Owned Utilities ........ 8.5%
Cash & Equivalents ...... 2.0%
</TABLE>
Because the Fund is actively managed, quality and sector weightings will change.
Quality breakdowns and sector allocations are based upon total net assets.
Sector classifications used on this page 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 Michigan 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. During the second half, declining interest rates
had a positive effect on the portfolio. Certain investments played a significant
role in the Fund's performance over the period. Metro Health, a once troubled
nursing home, reorganized management and worked out its financial problems --
generating a total return of 28% for the period. A less positive factor was the
Fund's investment in Blue Water Fiber and Great Lakes Pulp, both paper de-inking
facilities. These projects posted weak performance due to overcapacity and the
decline in pulp prices. As a result, we reduced our investment in these bonds.
Q. HOW IS THE STATE'S ECONOMY FARING?
A. Michigan's economy has improved significantly over the past few years, due in
part to a rebound in the automobile industry. The State's general obligation
bond rating was upgraded to AA during the year. However, because the State's
financial performance is still somewhat cyclical, we continued to focus on
sectors that are less dependent on tax revenue collections, such as water and
sewer. We also looked for selected opportunities in the City of Detroit as
increased private investment and a stabilizing population helped improve our
credit outlook during the year.
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
4
<PAGE>
through the first half of 1997. We do not believe there will be significant
price 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 expect to be maintaining our core
strategy until we see clearer market trends.
COLONIAL MICHIGAN 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
[GRAPH]
<TABLE>
<CAPTION>
CMITEF 1/97 NAV MOP Lehman Muni Bond
- ----------- -------- -------- ----------------
<S> <C> <C> <C>
Jan 31, 87 10000 9525 10000
Apr 30, 87 9192.939 8756.274 9444
Jul 31, 87 9413.205 8966.078 9771
Oct 31, 87 8852.213 8431.732 9466
Jan 31, 88 9731.764 9269.505 10205
Apr 30, 88 9737.867 9275.318 10270
Jul 31, 88 10022.22 9546.169 10458
Oct 31, 88 10354.89 9863.036 10844
Jan 31, 89 10615.3 10111.07 11080
Apr 30, 89 10720.08 10210.88 11187
Jul 31, 89 10874.73 10358.18 11732
Oct 31, 89 10915.97 10397.46 11724
Jan 31, 90 11029.32 10505.42 11970
Apr 30, 90 10977.17 10455.75 11993
Jul 31, 90 11496.79 10950.7 12545
Oct 31, 90 11375.65 10835.31 12594
Jan 31, 91 11802.08 11241.48 13076
Apr 30, 91 12144.46 11567.6 13371
Jul 31, 91 12345.19 11758.8 13640
Oct 31, 91 12717.15 12113.09 14126
Jan 31, 92 12996.47 12379.14 14502
Apr 30, 92 13103.14 12480.74 14642
Jul 31, 92 13882.97 13223.53 15514
Oct 31, 92 13591.25 12945.67 15311
Jan 31, 93 14301.44 13622.12 15928
Apr 30, 93 14747.89 14047.36 16494
Jul 31, 93 15014.03 14300.87 16886
Oct 31, 93 15494.9 14758.89 17468
Jan 31, 94 15898.58 15143.39 17881
Apr 30, 94 14874.85 14168.29 16850
Jul 31, 94 15266.3 14541.16 17202
Oct 31, 94 14746.92 14046.44 16707
Jan 31, 95 15315.64 14588.15 17245
Apr 30, 95 15839.12 15086.77 17971
Jul 31, 95 15900.66 15145.37 18557
Oct 31, 95 16648.54 15857.73 19186
Jan 31, 96 17327.06 16504.02 19840
Apr 30, 96 16819.2 16020.29 19399
Jul 31, 96 17189.86 16373.34 19781
Oct 31, 96 17562.36 16728.14 20279
Jan 31, 97 17734.16 16891.79 20603
</TABLE>
A $10,000 investment in Class B shares made on August 4, 1992 (inception) at NAV
would have been valued at $12,383 on January 31, 1997. The same investment after
deducting the applicable contingent deferred sales charge (CDSC) would have
grown to $12,184 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 3.24% (1.66)% 2.47% (2.43)%
- --------------------------------------------------------------------------------
5 YEARS 6.46% 5.43% -- --
- --------------------------------------------------------------------------------
10 YEARS 6.26% 5.74% -- --
- --------------------------------------------------------------------------------
SINCE INCEPTION 6.19% 5.69% 5.05% 4.66%
- --------------------------------------------------------------------------------
</TABLE>
Past performance cannot predict future results. Return and value of an
investment will vary, resulting in a gain or loss on sale. All results shown
assume reinvestment of distributions. Net asset value (NAV) 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, the 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 - 97.2% PAR VALUE
- -----------------------------------------------------------------------------------
<S> <C> <C>
EDUCATION - 20.5%
EDUCATION - 4.2%
Western Michigan University,
Series 1993-A,
5.000% 07/15/21 $2,500 $2,250
------
SCHOOL DISTRICT GENERAL OBLIGATION - 16.3%
Grand Ledge Public School District,
Series 1995,
5.375% 05/01/24 1,000 964
Grand Rapids Community College:
5.000% 05/01/14 770 711
Series 1996,
5.375% 05/01/19 1,000 964
Hancock Public School System,
Series 1996,
5.250% 05/01/20 1,300 1,230
Okemos Public School District,
Series 1993,
(a) 05/01/12 500 212
Redford Unified School District,
Series 1996,
6.350% 05/01/09 1,065 1,174
Romulus Community Schools:
Series 1993,
(a) 05/01/18 3,985 1,170
Series 1993,
(a) 05/01/21 2,075 511
Williamston Community School District,
Series 1996,
5.500% 05/01/25(b) 1,725 1,721
------
8,657
------
- -----------------------------------------------------------------------------------
HEALTHCARE - 18.2%
HOSPITAL - 16.2%
Dickinson County,
Memorial Hospital System,
Series 1994,
8.125% 11/01/24 550 602
Kalamazoo Hospital Finance Authority:
Borgess Medical Center,
Series 1994-A,
6.250% 06/01/14 1,785 1,928
</TABLE>
6
<PAGE>
Investment Portfolio/January 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Bronson Methodist Hospital,
Series 1992-A,
6.250% 05/15/12 $1,500 $1,539
Royal Oak Hospital Finance Authority,
William Beaumont Hospital,
Series 1993-G,
5.250% 11/15/19 2,000 1,875
Saginaw Hospital Finance Authority,
Saginaw General Hospital,
Series 1989,
7.625% 10/01/19 175 184
State Hospital Finance Authority:
Central Michigan Community Hospital,
Series 1993-A,
6.000% 10/01/08 500 495
Crittenton Hospital,
Series 1992-A,
6.700% 03/01/07 750 800
Daughters of Charity-Providence,
Series 1991,
7.000% 11/01/21 1,000 1,079
Detroit Medical Center,
Series 1988-A,
8.125% 08/15/12 50 53
------
8,555
------
NURSING HOME - 2.0%
Cheboygan County Economic
Development Corp.,
Metro Health Foundation Project, Series 1993,
5.000% 11/01/22(c) 600 540
Warren Economic Development Corp,
Autumn Woods Project, Series 1992,
6.900% 12/20/22 500 531
------
1,071
------
- -----------------------------------------------------------------------------------
HOUSING - 8.4%
MULTI-FAMILY - 4.5%
Grand Rapids Housing Finance Authority,
Series A,
7.625% 09/01/23 1,500 1,622
State Housing Development Authority:
Series 1990-A,
7.700% 04/01/23 500 529
Series 1991-B,
7.050% 10/01/12 200 212
------
2,363
------
</TABLE>
7
<PAGE>
Investment Portfolio/January 31, 1997
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------
MUNICIPAL BONDS - CONT. PAR VALUE
- -----------------------------------------------------------------------------------
<S> <C> <C>
HOUSING - CONT.
SINGLE FAMILY - 3.9%
State Housing Development Authority,
Series 1994-D,
6.850% 06/01/26 $1,975 $2,049
------
- -----------------------------------------------------------------------------------
OTHER REVENUE - 3.1%
HOTELS/CAMPS/LODGING - 1.5%
Detroit Economic Development Corp.,
E.H. Assoc. Limited Partnership,
Series 1992,
7.000% 06/01/12 750 799
------
MANUFACTURING - 0.9%
Monroe County,
North Star Steel Co.,
Series A,
6.875% 07/01/08 470 473
------
PAPER PRODUCTS - 0.7%
State Strategic Fund:
Blue Water Fiber Project,
Series 1994,
8.000% 01/01/12 360 261
Great Lakes Pulp & Fibre Project,
Series 1994,
10.250% 12/01/16(d) 250 115
------
376
------
- -----------------------------------------------------------------------------------
PUBLIC FACILITIES IMPROVEMENT - 8.7%
PR Commonwealth of Puerto Rico
Public Buildings Authority:
Series 1993-M,
stepped coupon, (5.700% 07/01/98)
3.750% 07/01/16(e) 750 698
Series 1995-A,
6.250% 07/01/14 1,200 1,311
Redford Township Building Authority,
Series 1992,
6.500% 11/01/13 675 697
Wayne County Building Authority,
Series 1996-A,
5.250% 06/01/16 2,000 1,903
------
4,609
------
</TABLE>
8
<PAGE>
Investment Portfolio/January 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
PUBLIC INFRASTRUCTURE - 3.9%
State Municipal Bond Authority,
Local Government Loan Program:
Series 1992-D,
6.650% 05/01/12 $1,000 $1,065
Series 1994-G,
(a) 05/01/19 2,000 550
Series 1994-G,
(a) 05/01/20 1,855 475
------
2,090
------
- -----------------------------------------------------------------------------------
REFUNDED/ESCROW/SPECIAL OBLIGATION (f) - 2.6%
Rockford Public Schools,
Series 1990,
7.375% 05/01/19 250 274
Western Townships Utilities
Authority, Series 1989,
8.200% 01/01/18 1,000 1,080
------
1,354
------
- -----------------------------------------------------------------------------------
TAX-BACKED - 11.6%
GENERAL OBLIGATION - 3.2%
Commonwealth of Puerto Rico,
Series 1995,
5.650% 07/01/15 500 514
Kent County, Series 1987,
8.400% 11/01/10 750 785
Pontiac, Series 1987,
8.300% 06/01/99 250 259
Virgin Islands Public Finance Authority,
Series 1992-A,
7.000% 10/01/02 125 135
------
1,693
------
SALES & EXCISE TAX - 2.0%
Commonwealth of Puerto Rico
Highway & Transportation Authority,
Series 1996-Y,
6.250% 07/01/14 1,000 1,079
------
SPECIAL ASSESSMENT - 4.8%
Detroit Downtown Development Authority,
Area No. 1 Projects:
Series 1996-D,
6.500% 07/01/10 700 725
Series 1996-C,
6.200% 07/01/17 1,000 1,001
</TABLE>
9
<PAGE>
Investment Portfolio/January 31, 1997
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------
MUNICIPAL BONDS - CONT. PAR VALUE
- -----------------------------------------------------------------------------------
<S> <C> <C>
TAX-BACKED - CONT
SPECIAL ASSESSMENT - CONT.
Oakland County,
Preeble Creek Drainage District,
5.000% 05/01/11 $ 300 $ 275
Romulus Tax Increment
Finance Authority,
Series 1994,
6.750% 11/01/19 500 523
------
2,524
------
TAX ALLOCATION - 1.6%
Battle Creek,
7.650% 05/01/22 750 869
------
- -----------------------------------------------------------------------------------
TRANSPORTATION - 1.9%
AIRPORT
Wayne Charter County,
Detroit Metropolitan Airport,
Series 1994-B,
6.125% 12/01/24 1,000 1,027
------
- -----------------------------------------------------------------------------------
UTILITY - 18.3%
INVESTOR OWNED - 8.5%
St. Clair County Economic
Development Corp.,
Detroit Edison Co., Series 1993-AA,
6.400% 08/01/24(b) 2,000 2,148
State Strategic Fund,
Detroit Edison Co., Series BB,
7.000% 05/01/21 2,000 2,377
------
4,525
------
MUNICIPAL ELECTRIC - 0.9%
Puerto Rico Electric Power Authority,
Series 1989-O,
5.000% 07/01/12 500 463
------
WATER & SEWER - 8.9%
Commonwealth of Puerto Rico
Aqueduct & Sewer Authority,
Series 1995:
6.250% 07/01/12 1,000 1,091
5.000% 07/01/15 1,500 1,386
Detroit Sewer Disposal,
Series 1995-B,
5.250% 07/01/21(b) 1,000 942
</TABLE>
10
<PAGE>
Investment Portfolio/January 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Detroit Water Supply,
Series 1995-B,
5.550% 07/01/12 $1,250 $ 1,275
-------
4,694
-------
TOTAL MUNICIPAL BONDS (cost of $49,540) 51,520
-------
OPTIONS - 0.1% CONTRACTS
- -----------------------------------------------------------------------------------
March 1997 Treasury Bond Put,
Strike price 110, Expiration 02/22/97
(cost of $53) 50 27
-------
TOTAL INVESTMENTS (cost of $49,593)(g) 51,547
-------
SHORT-TERM OBLIGATIONS - 1.9% PAR
- -----------------------------------------------------------------------------------
VARIABLE RATE DEMAND NOTES (h)
IL State Educational Facilities Authority,
3.450% 12/01/25 $ 700 700
Flint Hospital Building Authority,
Hurley Medical Center,
Series 1995-B,
3.500% 07/01/15 300 300
-------
TOTAL SHORT-TERM OBLIGATIONS 1,000
-------
OTHER ASSETS & LIABILITIES, NET - 0.8% 423
- -----------------------------------------------------------------------------------
NET ASSETS - 100% $52,970
-------
</TABLE>
NOTES TO INVESTMENT PORTFOLIO:
- --------------------------------------------------------------------------------
(a) Zero coupon bond.
(b) These securities, or a portion thereof, with a total market value of
$2,771 are being used to collateralize open futures contracts.
(c) This security is exempt from registration under Rule 144A of the
Securities Act of 1933. This security may be resold in transactions
exempt from registration, normally to qualified institutional buyers.
At January 31, 1997, the value of this security amounted to $540 or
1.0% of net assets.
(d) This issuer is in default of certain debt covenants. Income is not
being accrued.
(e) Shown parenthetically is the interest rate to be paid and the date the
Fund will begin accruing this rate.
(f) 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.
11
<PAGE>
Investment Portfolio/January 31, 1997
- --------------------------------------------------------------------------------
NOTES TO INVESTMENT PORTFOLIO - CONT:
- --------------------------------------------------------------------------------
(g) Cost for federal income tax purposes is the same.
(h) 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 $ 1,000 March $ (10)
Municipal Bond $ 1,000 March $ 17
------
$ 7
======
</TABLE>
See notes to financial statements.
12
<PAGE>
STATEMENT OF ASSETS & LIABILITIES
JANUARY 31, 1997
(in thousands except for per share amounts and footnotes)
<TABLE>
<S> <C> <C>
ASSETS
Investments at value (cost $49,593) $51,547
Short-term obligations 1,000
-------
52,547
Receivable for:
Interest $ 653
Fund shares sold 84
Other 19 756
-------- -------
Total Assets 53,303
LIABILITIES
Payable for:
Distributions 214
Fund shares repurchased 85
Variation margin on futures 18
Payable to Adviser 10
Accrued:
Deferred Trustees fees 1
Other 5
--------
Total Liabilities 333
-------
NET ASSETS $52,970
=======
Net asset value & redemption price per share -
Class A ($39,606/5,712) $ 6.93
-------
Maximum offering price per share - Class A
($6.93/0.9525) $ 7.28(a)
-------
Net asset value & offering price per share -
Class B ($13,364/1,927) $ 6.93(b)
-------
COMPOSITION OF NET ASSETS
Capital paid in $52,167
Accumulated net realized loss (1,158)
Net unrealized appreciation on:
Investments 1,954
Open futures contracts 7
-------
$52,970
=======
</TABLE>
(a) On sales of $50,000 or more the offering price is reduced.
(b) Redemption price per share is equal to net asset value less any applicable
contingent deferred sales charge.
See notes to financial statements.
13
<PAGE>
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED JANUARY 31, 1997
<TABLE>
<S> <C> <C>
(in thousands)
INVESTMENT INCOME
Interest $ 3,284
EXPENSES
Management fee $ 280
Service fee 75
Distribution fee - Class B 105
Transfer agent 90
Bookkeeping fee 29
Trustees fee 13
Custodian fee 3
Audit fee 22
Legal fee 7
Registration fee 12
Reports to shareholders 9
Other 8
-------
653
Fees waived by the Adviser (63) 590
------- -------
Net Investment Income 2,694
-------
NET REALIZED & UNREALIZED GAIN (LOSS) ON PORTFOLIO POSITIONS
Net realized
gain (loss) on:
Investments (46)
Closed futures contracts 187
-------
Net Realized Gain 141
Net unrealized appreciation (depreciation)
during the period on:
Investments (1,784)
Open futures contracts 15
-------
Net Unrealized Loss (1,769)
-------
Net Loss (1,628)
-------
Net Increase in Net Assets from Operations $ 1,066
=======
</TABLE>
See notes to financial statements.
14
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
(in thousands) Year ended January 31
---------------------------
INCREASE (DECREASE) IN NET ASSETS 1997 1996
<S> <C> <C>
Operations:
Net investment income $ 2,694 $ 2,943
Net realized gain (loss) 141 (716)
Net unrealized appreciation (depreciation) (1,769) 4,744
-------- --------
Net Increase from Operations 1,066 6,971
Distributions:
From net investment income - Class A (2,091) (2,375)
In excess of net investment income - Class A (10) --
From net investment income - Class B (612) (697)
In excess of net investment income - Class B (3) --
-------- --------
(1,650) 3,899
-------- --------
Fund Share Transactions:
Receipts for shares sold - Class A 2,221 2,362
Value of distributions reinvested - Class A 1,192 1,345
Cost of shares repurchased - Class A (5,898) (5,144)
-------- --------
(2,485) (1,437)
-------- --------
Receipts for shares sold - Class B 709 1,668
Value of distributions reinvested - Class B 304 361
Cost of shares repurchased - Class B (2,452) (1,935)
-------- --------
(1,439) 94
-------- --------
Net Decrease from Fund Share
Transactions (3,924) (1,343)
-------- --------
Total Increase (Decrease) (5,574) 2,556
NET ASSETS
Beginning of period 58,544 55,988
-------- --------
End of period (including undistributed
net investment income of none and $18,
respectively) $ 52,970 $ 58,544
======== ========
NUMBER OF FUND SHARES
Sold - Class A 323 343
Issued for distributions reinvested - Class A 173 196
Repurchased - Class A (856) (749)
-------- --------
(360) (210)
-------- --------
Sold - Class B 103 242
Issued for distributions reinvested - Class B 44 53
Repurchased - Class B (356) (282)
-------- --------
(209) 13
-------- --------
</TABLE>
See notes to financial statements.
15
<PAGE>
NOTES TO FINANCIAL STATEMENTS
JANUARY 31, 1997
NOTE 1. ACCOUNTING POLICIES
ORGANIZATION: Colonial Michigan 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 Michigan income tax and
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.
16
<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 annualized distribution fee applicable to Class B shares only.
FEDERAL INCOME TAXES: Consistent with the Fund's policy to qualify as a
regulated investment company and to distribute all of its taxable and tax-exempt
income, no federal income tax has been accrued.
INTEREST INCOME, DEBT DISCOUNT AND PREMIUM: Interest income is recorded on the
accrual basis. Original issue discount is accreted to interest income over the
life of a security with a corresponding increase in the cost basis; market
discount is not accreted. Premium is amortized against interest income with a
corresponding decrease in the cost basis.
DISTRIBUTIONS TO SHAREHOLDERS: The Fund declares and records distributions daily
and pays monthly.
The amount and character of income and gains to be distributed are determined in
accordance with income tax regulations which may differ from generally accepted
accounting principles. Reclassifications are made to the Fund's capital accounts
to reflect income and gains available for distribution (or available capital
loss carryforwards) under income tax regulations.
NOTE 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>
17
<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 $8,573 on sales of the Fund's Class A shares
and received contingent deferred sales charges (CDSC) of $45,521 on Class
B share redemptions.
The Fund has adopted a 12b-1 plan which requires the payment of a
distribution fee to the Distributor equal to 0.75% annually of the Fund's
average net assets attributable to Class B shares. The plan also requires
the payment of a service fee to the Distributor as follows:
<TABLE>
<CAPTION>
Valuation of shares Annual
outstanding on the 20th of Fee
each month which were issued Rate
---------------------------- ----
<S> <C>
Prior to November 30, 1994 0.10%
On or after December 1, 1994 0.25%
</TABLE>
The CDSC and the fees received from the 12b-1 plan are used principally
as repayment to the Distributor for amounts paid by the Distributor to
dealers who sold such shares.
18
<PAGE>
Notes to Financial Statements/January 31, 1997
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 3. PORTFOLIO INFORMATION
INVESTMENT ACTIVITY: During the year ended January 31, 1997, purchases and sales
of investments, other than short-term obligations were $13,208,706 and
$18,056,510, respectively.
Unrealized appreciation (depreciation) at January 31, 1997, based on cost of
investments for both financial statement and federal income tax purposes was:
<TABLE>
<S> <C>
Gross unrealized appreciation $ 2,354,874
Gross unrealized depreciation (400,773)
-------------
Net unrealized appreciation $ 1,954,101
=============
</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>
1999 80,000
2003 196,000
-------------
$ 276,000
=============
</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.
19
<PAGE>
Notes to Financial Statements/January 31, 1997
NOTE 3. PORTFOLIO INFORMATION - 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.
20
<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 $ 7.130 $ 7.130 $ 6.660 $ 6.660
----------- ----------- ----------- -----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment
income(a) 0.354 0.302 0.368 0.317
Net realized and
unrealized gain (loss) (0.198) (0.198) 0.484 0.484
----------- ----------- ----------- -----------
Total from Investment
Operations 0.156 0.104 0.852 0.801
----------- ----------- ----------- -----------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net
investment income (0.354) (0.303) (0.382) (0.331)
In excess of net
investment income (0.002) (0.001) -- --
----------- ----------- ----------- -----------
Total Distributions
Declared to
Shareholders (0.356) (0.304) (0.382) (0.331)
----------- ----------- ----------- -----------
Net asset value -
End of period $ 6.930 $ 6.980 $ 7.130 $ 7.130
=========== =========== =========== ===========
Total return(b)(c) 2.35% 1.58% 13.13% 12.30%
=========== =========== =========== ===========
RATIOS TO AVERAGE NET ASSETS
Expenses (d) 0.89% 1.64% 0.80% 1.55%
Net investment
income (d) 5.12% 4.37% 5.34% 4.59%
Fees and expenses waived
or borne by the
Adviser (d) 0.12% 0.12% 0.25% 0.25%
Portfolio turnover 25% 25% 48% 48%
Net assets at end
of period (000) $ 39,606 $ 13,364 $ 43,308 $ 15,236
</TABLE>
(a) Net of fees and expenses waived or borne by the Adviser which amounted
to:
<TABLE>
<S> <C> <C> <C> <C>
$ 0.008 $ 0.008 $ 0.017 $ 0.017
</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.
21
<PAGE>
FINANCIAL HIGHLIGHTS - CONT.
Selected data for a share of each class outstanding throughout each period are
as follows:
<TABLE>
<CAPTION>
Year ended January 31
--------------------------------------------------------------------------
1995 1994
Class A Class B Class A Class B
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Net asset value -
Beginning of period $ 7.340 $ 7.340 $ 6.970 $ 6.970
----------- ----------- ----------- -----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income(a) 0.410 0.359 0.404 0.351
Net realized and
unrealized gain (loss) (0.689) (0.689) 0.356 0.356
----------- ----------- ----------- -----------
Total from Investment
Operations (0.279) (0.330) 0.760 0.707
----------- ----------- ----------- -----------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net
investment income (0.401) (0.350) (0.390) (0.337)
From capital paid in -- -- -- --
----------- ----------- ----------- -----------
Total from Distributions
Declared to Shareholders (0.401) (0.350) (0.390) (0.337)
----------- ----------- ----------- -----------
Net asset value -
End of period $ 6.660 $ 6.660 $ 7.340 $ 7.340
----------- ----------- ----------- -----------
Total return(c)(d) (3.66)% (4.39)% 11.16% 10.36%
----------- ----------- ----------- -----------
RATIOS TO AVERAGE NET ASSETS
Expenses 0.62% 1.37% 0.66% 1.41%
Net investment income 6.08% 5.33% 5.61% 4.86%
Fees and expenses waived
or borne by the Adviser 0.32% 0.32% 0.33% 0.33%
Portfolio turnover 40% 40% 7% 7%
Net assets at end
of period (000) $ 41,844 $ 14,144 $ 45,570 $ 15,030
</TABLE>
(a) Net of fees and expenses waived or borne by the Adviser which amounted
to:
<TABLE>
<S> <C> <C> <C> <C>
$ 0.022 $ 0.022 $ 0.024 $ 0.024
</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.
- --------------------------------------------------------------------------------
Federal Income Tax Information (unaudited)
All of the distributions will be treated as exempt income for federal income tax
purposes.
- --------------------------------------------------------------------------------
22
<PAGE>
FINANCIAL HIGHLIGHTS - CONT.
<TABLE>
<CAPTION>
Year ended January 31
--------------------------------
1993
Class A Class B(b)
----------- -----------
<S> <C>
$ 6.730 $ 6.950
----------- -----------
0.405 0.167
0.250 0.029
----------- -----------
0.655 0.196
----------- -----------
(0.407) (0.168)
(0.008) (0.008)
----------- -----------
(0.415) (0.176)
----------- -----------
$ 6.970 $ 6.970
=========== ===========
10.04% 0.98%(e)
=========== ===========
0.88% 1.63%(f)
5.86% 5.11%(f)
0.32% 0.32%(f)
14% 14%
$ 36,024 $ 6,670
$ 0.022 $ 0.009
</TABLE>
23
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE TRUSTEES OF COLONIAL TRUST V AND THE SHAREHOLDERS OF
COLONIAL MICHIGAN 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 Michigan 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, provide a reasonable basis for the opinion expressed
above.
PRICE WATERHOUSE LLP
Boston, Massachusetts
March 12, 1997
24
<PAGE>
HOW TO REACH COLONIAL
BY PHONE OR BY MAIL
BY TELEPHONE
COLONIAL CUSTOMER CONNECTION - 1-800-345-6611
For 24-hour account information, call from your touch-tone phone. (Rotary
callers will be automatically connected to a representative during business
hours.) A recorded message will guide you through the menu:
<TABLE>
<S> <C>
For fund prices, dividends, and capital gains information ........... press 1
For account information ............................................. press 2
To speak to a Colonial representative ............................... press 3
For yield and total return information .............................. press 4
For duplicate statements or new supply of checks .................... press 5
To order duplicate tax forms and year-end statements ................ press 6
(February through May)
To review your options at any time during your call ................. press *
</TABLE>
To speak with a shareholder services representative about your account, call
Monday to Friday, 8:00 a.m. to 8:00 p.m. ET, and Saturdays from February through
mid-April, 10:00 a.m. to 2:00 p.m. ET.
COLONIAL TELEPHONE TRANSACTION DEPARTMENT - 1-800-422-3737
To purchase, exchange, or sell shares by telephone, call Monday to Friday, 9:00
a.m. to 7:00 p.m. ET. Transactions received after the close of the New York
Stock Exchange will receive the next business day's closing price.
LITERATURE - 1-800-426-3750
To request literature on any Colonial fund, call Monday to Friday, 8:30 a.m. to
6:30 p.m. ET.
BY MAIL
COLONIAL INVESTORS SERVICE CENTER, INC.
P.O. BOX 1722
BOSTON, MA 02105-1722
25
<PAGE>
SHAREHOLDER COMMUNICATIONS
TO KEEP YOU INFORMED
To make recordkeeping easy and keep you up-to-date on the performance of your
investments, you can expect to receive the following information about your
Colonial account:
TRANSACTION CONFIRMATIONS: Each time you make a purchase, sale, or exchange, you
receive a confirmation statement within just a few days.
QUARTERLY STATEMENTS: Every three months, if any transactions are made that
affect your share balance, this statement reports on your account activity
during the quarter (including any reinvestment of dividends). This statement
also provides year-to-date information.
COLONIAL SHAREHOLDER NEWS: Mailed with your quarterly account statements, this
newsletter highlights timely investment strategies, portfolio manager
commentary, and shareholder service updates.
TAX FORMS AND YEAR-END TAX GUIDE: Easy-to-use forms and timely information are
designed to make tax reporting simpler. (Usually mailed in January.)
AVERAGE COST BASIS STATEMENTS: If you sold or exchanged shares during the year,
this statement may help you calculate your gain/loss for tax purposes. (Usually
mailed in February.)
26
<PAGE>
IMPORTANT INFORMATION ABOUT THIS REPORT
The Transfer Agent for Colonial Michigan Tax-Exempt Fund is:
Colonial Investors Service Center, Inc.
P.O. Box 1722
Boston, MA 02105-1722
1-800-345-6611
Colonial Michigan 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 Michigan Tax-Exempt
Fund. This report may also be used as sales literature when preceded or
accompanied by the current prospectus which provides details of sales charges,
investment objectives, and operating policies of the Fund.
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, C.S. 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
MI-02/393D-0197 M (3/97)
