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COLONIAL FLORIDA TAX-EXEMPT FUND Annual report
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January 31, 1999
[GRAPHIC OMITTED]
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Not FDIC May Lose Value
Insured No Bank Guarantee
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COLONIAL FLORIDA TAX-EXEMPT FUND HIGHLIGHTS
FEBRUARY 1, 1998 - JANUARY 31, 1999
Portfolio Manager Commentary: "Interest rate volatility, low nominal interest
rates and a near-record level of supply created challenging conditions for
tax-exempt investors. Despite these hurdles, the Fund was well positioned. We
took advantage of declining interest rates and a strong Florida economy,
generating attractive performance relative to the Fund's Lipper peer group."(1)
-- Maureen Newman
Colonial Florida Tax-Exempt Fund Performance
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Class A Class B Class C
Inception dates 2/1/93 2/1/93 8/1/97
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12-month distributions declared per share(2) $0.375 $0.315 $0.339
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SEC yields on 1/31/99(3) 3.60% 3.03% 3.33%
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Taxable-equivalent SEC yields(4) 5.96% 5.02% 5.51%
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12-month total returns, assuming reinvestment 6.29% 5.48% 5.80%
of all distributions and no sales charge or
contingent deferred sales charge (CDSC)(5)
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Net asset value per share on 1/31/99 $7.89 $7.89 $7.89
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Quality Breakdown(6) (as of 1/31/99)
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AAA ..............................60.2%
AA ...............................17.1%
A ................................ 7.3%
BBB .............................. 6.1%
BB ............................... 0.8%
Nonrated ......................... 5.3%
Short-Term Obligations ........... 3.2%
Top Five Sectors(6) (as of 1/31/99)
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Water & Sewer.....................15.9%
State General Obligations.........11.8%
Hospitals......................... 9.2%
Municipal Electric................ 9.2%
Airport........................... 7.2%
(1) See complete Lipper rankings on page 3.
(2) A portion of the Fund's income may be subject to the alternative minimum
tax. The Fund may at times purchase tax-exempt securities at a discount.
Some or all of this discount may be included in the Fund's ordinary income
and will be taxable when distributed.
(3) The 30-day SEC yields on January 31, 1999, reflect the portfolio's earning
power, net of expenses, and are expressed as an annualized percentage of
the public offering price at the end of the period. If the Advisor or its
affiliates had not waived or borne certain Fund expenses, SEC yields would
have been 3.52% for Class A shares, 2.94% for Class B shares and 3.03% for
Class C shares.
(4) Taxable-equivalent SEC yields are based on the maximum effective 39.6%
federal income tax rate.
(5) Performance results reflect any voluntary waivers or reimbursements of
Fund expenses by the Advisor or its affiliates. Absent these waivers or
reimbursement arrangements, performance results would have been lower.
(6) Quality and sector breakdowns are calculated as a percentage of total
investments, including short-term obligations. Because the Fund is
actively managed, there can be no guarantee the Fund will continue to
maintain these quality and sector breakdowns in the future.
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2
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PRESIDENT'S MESSAGE
TO FUND SHAREHOLDERS
I am pleased to present the annual report for Colonial Florida Tax-Exempt Fund
for the 12 months ended January 31, 1999.
The past 12 months were generally positive for bonds, although conditions varied
considerably as domestic and international events affected all sectors of the
bond market. Despite some economic uncertainty early in the year, the economy
continued to grow and inflation remained low, creating a positive climate for
bonds.
[PHOTO]
International events played a role in the strong U.S. bond market. The economic
turmoil in Asia that began in 1997 gradually spread to other less-developed
markets, most notably Russia and Latin America. During pockets of increased
volatility, investors around the world sought the relative quality and stability
of U.S. Treasury bonds. Although demand for safety made Treasurys the bond
market's biggest winner, municipal bonds also benefited.
Colonial's disciplined bond fund management style and long-term investment
orientation served shareholders well during this volatile period, helping the
Fund outperform the majority of its peers over the past 12 months.(1) For
investors seeking competitive levels of tax-free income and the potential for
long-term price appreciation, Colonial Florida Tax-Exempt Fund may provide an
attractive option.
The Portfolio Manager Report on the following pages will provide you with more
specific information on your Fund's performance and the market in which your
Fund invests. Thank you for choosing Colonial Florida Tax-Exempt Fund and for
giving us the opportunity to serve your investment needs.
Respectfully,
/s/ Stephen E. Gibson
Stephen E. Gibson
President
March 11,1999
(1) Source: Lipper, Inc. Lipper rankings are based on the Lipper Florida
Tax-Exempt Municipal Fund universe. The Fund (Class A shares) ranked in the
first quartile for one year (8 out of 62 funds), in the first quartile for three
years (13 out of 56 funds) and in the second quartile for five years (17 out of
35 funds). Rankings do not include any sales charges. Performance for different
share classes will vary with fees associated with each class. Past performance
does not guarantee future results.
Because economic and market conditions change frequently, there can be no
assurance that the trends described above or on the following pages will
continue.
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3
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PORTFOLIO MANAGER REPORT
Maureen Newman is portfolio manager of Colonial Florida Tax-Exempt Fund. Ms.
Newman is a senior vice president of Colonial Management Associates, Inc. and is
the manager of tax-exempt credit research.
Tax-exempt market generated modest gains
The period began on a positive note, with the U.S. economy strong and no clear
signs of inflation. Throughout the year a series of international crises were
manifested domestically, affecting both stock and bond prices. Instability in
Asia, Russia and Latin America contributed to an increase in the U.S. trade
deficit and concerns about corporate profitability. This fall, the Federal
Reserve Board lowered short-term interest rates three times in an effort to
renew investor confidence. Sentiment about how these events might impact the
U.S. economy in the long run shifted throughout the period, taking fixed-income
investors on a roller coaster ride through much of the year. Overall, bond
prices rose during the period.
Like the broader bond market, municipal bond prices were affected by global
events and interest rate volatility. In addition, the tax-exempt market
experienced a near-record level of issuance in 1998, as issuers took advantage
of lower interest rates to refinance existing debt and to finance new projects.
At times, the market found it difficult to absorb this supply.
Fund's performance reflects investment strategy
For the 12-month period, the Fund generated a total return of 6.29% for Class A
shares, based on net asset value. This compares favorably with the performance
of the Fund's Lipper competitive peer group, which averaged 5.59% for the same
time period. We attribute this performance to the Fund's investment strategy.
Our forecast for modest economic growth and low inflation led us to believe that
interest rates would decline. Since bond prices tend to rise when interest rates
fall, we emphasized bonds with a higher sensitivity to interest rate changes for
most of the year. These included noncallable bonds, which cannot be refinanced
at a lower rate of interest prior to maturity. The longer expected life span of
these bonds increases their sensitivity to changes in interest rates, often
producing attractive price gains when interest rates decline.
In the final months of the year, we reduced our holdings in noncallable bonds.
We felt that they had provided significant value to the Fund, and had limited
potential for continued outperformance. In their place we purchased intermediate
maturity bonds with premium coupons. These securities were overlooked by much of
the marketplace and available at attractive prices. We believe they offered
relative value to investors and positioned the Fund well for the market
environment. We will continue to actively manage the portfolio in search of
other relative value opportunities.
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4
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Favorable economic environment in Florida
Florida's economy continues to prosper. A high quality of life combined with low
business costs makes the state a popular choice for corporate relocation.
Community Development Districts are being created to finance the infrastructure
needed to support new development, including residential/commercial complexes
and single-family housing. We have invested in several such districts, including
two where construction is managed by well-known and nationally respected
developers, including U.S. Homes (developer of Stoneybrook Community Development
District which is 0.8% of total net assets) and Pulte Corp. (developer of
Lexington Oaks Community Development which is 1.0% of total net assets).
Florida's close proximity to Latin America has created a fairly high
export-trade exposure to that region. We expect that problems in Latin America
will reduce revenues from international trade and tourism, which may have an
effect on Florida's growth rate. However, we believe that continued population
growth and an increasingly broad-based economy help position Florida for future
economic success. In addition, the state government's long history of managing
its finances across economic cycles and its significant financial reserves
provide a cushion for periods of slower economic growth.
Positive outlook for municipal market conditions
Looking ahead, inflation should remain low, as we expect productivity gains and
a worldwide surplus in manufacturing capacity to limit the potential for
substantial price increases. In the municipal market, we expect positive supply
and demand dynamics. We doubt total issuance will match 1998's near-record
supply of $280 billion, partially because refinancing volume should slow down as
many issuers have already refinanced. Overall, lower supply combined with
generally positive expectations for the economic environment should have a
positive impact on municipal bond prices. However, as we end the eighth
consecutive year of economic expansion in the U.S., we will watch for events and
trends that could change our expectations and possibly lead us to alter our
investment strategy.
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5
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Colonial Florida Tax-Exempt Fund's Investment Performance vs.
the Lehman Brothers Municipal Bond Index
Growth of $10,000 from 2/1/93 - 1/31/99
Class A Shares
Based on NAV and POP
[The following information was represented by a mountain graph in the printed
materials.]
AS OF DATE NAV POP Lehman
Feb 28, 93 10359 9867 10362
Mar 31, 93 10183 9700 10252
Apr 30, 93 10300 9811 10355
May 31, 93 10363 9871 10414
Jun 30, 93 10546 10045 10588
Jul 31, 93 10552 10051 10601
Aug 31, 93 10777 10265 10822
Sep 30, 93 10907 10389 10946
Oct 31, 93 10941 10422 10967
Nov 30, 93 10822 10308 10870
Dec 31, 93 11064 10538 11099
Jan 31, 94 11167 10636 11226
Feb 28, 94 10834 10319 10935
Mar 31, 94 10217 9732 10490
Apr 30, 94 10295 9806 10579
May 31, 94 10385 9892 10671
Jun 30, 94 10391 9897 10605
Jul 31, 94 10570 10068 10800
Aug 31, 94 10547 10046 10837
Sep 30, 94 10423 9928 10678
Oct 31, 94 10140 9658 10489
Nov 30, 94 9941 9469 10299
Dec 31, 94 10260 9773 10526
Jan 31, 95 10594 10091 10826
Feb 28, 95 10947 10427 11141
Mar 31, 95 11046 10521 11269
Apr 30, 95 11055 10530 11283
May 31, 95 11336 10797 11643
Jun 30, 95 11101 10573 11541
Jul 31, 95 11187 10656 11650
Aug 31, 95 11254 10720 11798
Sep 30, 95 11337 10799 11873
Oct 31, 95 11545 10997 12045
Nov 30, 95 11784 11225 12245
Dec 31, 95 11962 11394 12363
Jan 31, 96 12030 11459 12456
Feb 29, 96 11925 11359 12372
Mar 31, 96 11742 11184 12214
Apr 30, 96 11714 11157 12179
May 31, 96 11749 11191 12175
Jun 30, 96 11866 11302 12307
Jul 31, 96 11981 11412 12419
Aug 31, 96 12001 11431 12416
Sep 30, 96 12152 11574 12590
Oct 31, 96 12254 11672 12732
Nov 30, 96 12473 11880 12965
Dec 31, 96 12395 11806 12910
Jan 31, 97 12367 11779 12935
Feb 28, 97 12472 11879 13053
Mar 31, 97 12310 11725 12879
Apr 30, 97 12416 11826 12987
May 31, 97 12606 12007 13183
Jun 30, 97 12712 12108 13323
Jul 31, 97 13177 12551 13692
Aug 31, 97 12943 12328 13564
Sep 30, 97 13100 12478 13725
Oct 31, 97 13207 12579 13813
Nov 30, 97 13296 12664 13894
Dec 31, 97 13524 12882 14097
Jan 31, 98 13649 13001 14242
Feb 28, 98 13617 12970 14247
Mar 31, 98 13620 12973 14259
Apr 30, 98 13534 12891 14195
May 31, 98 13785 13130 14420
Jun 30, 98 13805 13150 14477
Jul 31, 98 13808 13152 14513
Aug 31, 98 13936 13274 14737
Sep 30, 98 14168 13495 14921
Oct 31, 98 14257 13579 14920
Nov 30, 98 14254 13577 14973
Dec 31, 98 14381 13698 15010
Jan 31, 99 14508 13819 15189
Growth of a $10,000 investment made on 2/1/93
As of 1/31/99
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Class A Class B Class C
NAV POP NAV w/CDSC NAV w/CDSC
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$14,508 $13,819 $13,872 $13,772 $13,936 $13,936
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Average Annual Total Returns
As of 1/31/99
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Class A Class B Class C
Inception 2/1/93 2/1/93 8/1/97
NAV POP NAV w/CDSC NAV w/CDSC
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1 year 6.29% 1.24% 5.48% 0.48% 5.80% 4.80%
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5 years 5.37 4.35 4.59 4.25 4.68 4.68
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Life 6.39 5.54 5.60 5.48 5.68 5.68
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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 contingent deferred sales charges (CDSC). Public
offering price (POP) returns include the maximum sales charge of 4.75% for Class
A shares. The CDSC returns reflect the maximum charges of 5% for one year, 2%
for five years and 1% since inception for Class B shares, and 1% for one year
for Class C shares.
Performance results reflect any voluntary waivers or reimbursement of Fund
expenses by the Advisor or its affiliates. Absent these waivers or reimbursement
arrangements, performance results would have been lower.
Performance for different share classes will vary based on differences in sales
charges and fees associated with each class.
Class C share performance information includes returns of the Fund's Class B
shares (the oldest existing fund class) for periods prior to its inception date.
These Class B share returns are not restated to reflect any expense differential
(e.g., Rule 12b-1 fees) between Class B and C shares.
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 and do not incur fees or expenses. It is not
possible to invest directly in an index.
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6
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INVESTMENT PORTFOLIO
JANUARY 31, 1999 (IN THOUSANDS)
MUNICIPAL BONDS - 97.1% PAR VALUE
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EDUCATION - 2.5%
Education
CA Educational Facilities Authority,
University of San Diego,
(a) 10/1/13 (b) $ 1,000 $ 509
Pinellas County Educational Facilities
Authority, Barry University Project,
Series 1998,
5.375% 10/1/23 1,000 1,012
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1,521
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................................................................................
HEALTHCARE - 9.8%
Hospitals - 9.2%
Cape Canaveral Hospital District,
Series 1998,
5.250% 1/1/18 500 495
Miami Beach Health Facilities Authority,
Mount Sinai Medical Center,
5.375% 11/15/28 500 489
Orange County Health Facilities Authority,
Orlando Regional Healthcare System,
Series 1996-A,
6.250% 10/1/16 3,000 3,554
Tampa Catholic Health East,
Series 3,
5.250% 11/15/12 1,000 1,075
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5,613
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Nursing Homes - 0.6%
Collier County Industrial
Development Authority,
Beverly Enterprises, Inc., Series 1991,
10.750% 3/1/03 130 145
Escambia County,
Beverly Enterprises-Florida, Inc.,
Series 1985,
9.800% 6/1/11 110 118
Palm Beach County,
Beverly Enterprises-Florida, Inc.,
Series 1984,
10.000% 6/1/11 90 97
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360
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7
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Investment Portfolio/January 31, 1999
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MUNICIPAL BONDS - CONT. PAR VALUE
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HOUSING - 9.1%
Multi-Family - 2.2%
Florida Housing Finance Agency,
Windsong Apartments,
Series 1993-C,
9.250% 1/1/19 $ 35 $ 32
Orange County Housing Finance Authority,
Brentwood, Series 1998-K,
6.500% 12/1/34 250 250
Palm Beach County Housing Finance Authority,
Windsor Park Apartments Project,
Series 1998-A,
5.800% 12/1/28 1,000 1,053
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1,335
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Single-Family - 6.9%
Broward County Housing Finance Authority,
Series 1995,
6.700% 2/1/28 (c) 1,220 1,320
Lee County Housing Finance Authority,
Series 1998-A,
6.300% 3/1/29 1,000 1,118
Manatee County Housing
Finance Authority,
Series 1996-1,
7.450% 5/1/27 1,550 1,767
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4,205
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................................................................................
OTHER - 1.2%
Refunded/Escrowed (d)
Clearwater Housing Authority,
Hampton Apartments,
Series 1994,
8.250% 5/1/24 575 712
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................................................................................
OTHER REVENUE - 0.8%
Industrial
Hendry County Industrial Development Authority,
Savannah Foods & Industries,
Series 1992,
6.400% 3/1/17 500 500
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................................................................................
RESOURCE RECOVERY - 1.8%
Resource Recovery
Palm Beach County Solid Waste Authority,
Series 1998-A,
(a) 10/1/12 2,000 1,067
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8
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Investment Portfolio/January 31, 1999
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TAX-BACKED - 28.5%
Local Appropriated - 3.7%
Hillsborough County School Board,
Series 1998-A,
5.500% 7/1/16 $ 1,060 $ 1,165
Miami-Dade County School Board,
Series 1998-A,
5.250% 8/1/13 1,000 1,069
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2,234
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Local General Obligations - 1.1%
TX Houston Independent School District,
(a) 2/15/09 (b) 1,000 649
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Special Non-Property Tax - 5.9%
Commonwealth of Puerto Rico,
Infrastructure Finance Authority, Series A,
5.000% 7/1/28 500 502
Jacksonville Excise Tax,
Series 1993,
(a) 10/1/09 525 330
Jacksonville Transportation System,
5.000% 7/1/13 1,000 1,043
Tampa Sports Authority,
Tampa Bay Arena Project,
Series 1995,
5.750% 10/1/25 1,500 1,708
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3,583
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Special Property Tax - 4.8%
Lexington Oaks Community Development District,
Series 1998-A,
6.125% 5/1/19 600 606
Orlando Conroy Road Interchange Project:
Series 1998-A,
5.800% 5/1/26 500 501
Series 1998-B,
5.250% 5/1/05 250 249
Reedy Creek Improvement District,
Series 1998-A,
5.250% 6/1/12 1,000 1,073
Stoneybrook Community Development:
Series 1998-A,
5.700% 5/1/08 250 250
Series 1998-B,
6.100% 5/1/19 250 250
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2,929
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9
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Investment Portfolio/January 31, 1999
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MUNICIPAL BONDS - CONT. PAR VALUE
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TAX-BACKED - CONT.
State Appropriated - 1.2%
Florida Department of Corrections,
Okeechobee Correctional Installation,
Series 1995,
6.250% 3/1/15 $ 625 $ 702
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State General Obligations - 11.8%
Commonwealth of Puerto Rico,
Aqueduct & Sewer Authority,
Series 1996,
6.500% 7/1/14 1,000 1,211
Florida Board of Education:
Series 1989-A,
7.250% 6/1/23 1,000 1,065
Series 1992-A,
6.400% 6/1/19 2,500 2,718
Series 1998-A,
5.250% 6/1/13 2,045 2,188
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7,182
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................................................................................
TRANSPORTATION - 11.9%
Airport - 7.2%
Broward County,
Airport System Revenue, Series 1998-E,
5.375% 10/1/13 1,000 1,068
Dade County,
Miami International Airport,
Series 1992-B,
6.600% 10/1/22 (c) 2,000 2,209
Palm Beach County,
County Airport System,
7.750% 10/1/10 (c) 1,000 1,123
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4,400
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Ports - 4.7%
Dade County Seaport:
Series 1995,
6.200% 10/1/09 (c) 1,000 1,185
Series 1996,
5.400% 10/1/21 1,615 1,680
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2,865
---------
................................................................................
UTILITY - 31.5%
Individual Power Producer - 2.8%
Martin County Industrial Development Authority,
Indiantown Co-generation Project, Series 1994-A,
7.875% 12/15/25 1,500 1,721
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10
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Investment Portfolio/January 31, 1999
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Investor Owned - 3.6%
Citrus County Florida Power Corp.,
Crystal River Power Plant, Series 1992-A,
6.625% 1/1/27 $ 2,000 $ 2,164
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Municipal Electric - 9.2%
Lakeland Electric and Water System,
Series 1996-B,
6.000% 10/1/11 1,870 2,192
Orlando Utilities Commission,
Series 1989-D,
6.750% 10/1/17 2,750 3,398
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5,590
---------
Water & Sewer - 15.9%
Hillsborough County Utility System,
Series 1991-A,
7.000% 8/1/14 (c) 2,155 2,365
Seacoast Utility Authority,
Series 1989-A,
5.500% 3/1/15 1,900 2,100
Seminole County Water and Sewer,
Series 1992,
6.000% 10/1/19 1,500 1,732
Tampa Bay Water Utility System,
5.125% 10/1/14 1,500 1,578
Village Center Community Development District,
Series 1998-A,
5.250% 10/1/15 1,820 1,914
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9,689
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TOTAL INVESTMENTS (cost of $55,395)(e) 59,021
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SHORT-TERM OBLIGATIONS - 3.2%
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VARIABLE RATE DEMAND NOTES (f)
AZ Pinal County Industrial Development Authority,
Newmont Mining Corp., Series 1984-A,
3.250% 12/1/09 200 200
FL Pinellas County Health Facilities Authority,
Series 1985,
3.250% 12/1/15 100 100
ID Health Facilities Authority,
St. Lukes Regional Medical Facility,
Series 1995,
3.200% 5/1/22 500 500
IL Development Finance Authority,
Council for Jewish Elderly,
Series 1995,
2.750% 3/1/15 400 400
11
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Investment Portfolio/January 31, 1999
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SHORT-TERM OBLIGATIONS - CONT. PAR VALUE
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VARIABLE RATE DEMAND NOTES - CONT.
LA Offshore Terminal Authority,
Loop Project, Inc.,
3.150% 9/1/06 $ 100 $ 100
MI Flint Hospital Building Authority,
Hurley Medical Center, Series 1995-B,
2.750% 7/1/15 100 100
NY City Municipal Water & Sewer
Finance Authority,
Series 1995-A,
3.250% 6/15/25 100 100
NY General Obligation,
Series 1992-B,
3.300% 10/1/20 100 100
WA Health Care Facilities Authority,
3.250% 1/1/18 350 350
---------
TOTAL SHORT-TERM OBLIGATIONS 1,950
---------
OTHER ASSETS & LIABILITIES, NET - (0.3)% (209)
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NET ASSETS - 100.0% $ 60,762
=========
NOTES TO INVESTMENT PORTFOLIO:
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(a) Zero coupon bond.
(b) This security has been purchased on a delayed delivery basis for
settlement at a future date beyond the customary settlement time.
(c) These securities, or a portion thereof, with a total market value of
$6,125, are being used to collateralize the delayed delivery purchase
indicated in note (b) above and open futures contracts.
(d) 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.
(e) Cost for federal income tax purposes is the same.
(f) 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,
1999.
Long futures contracts open at January 31, 1999:
Par value Unrealized
covered by Expiration appreciation
Type contracts month at 1/31/99
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Treasury bond $ 1,700 March $ 53
See notes to financial statements.
12
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STATEMENT OF ASSETS & LIABILITIES
JANUARY 31, 1999
(in thousands except for per share amounts and footnotes)
ASSETS
Investments at value (cost $55,395) $ 59,021
Short-term obligations 1,950
------------
60,971
Receivable for:
Interest $ 900
Fund shares sold 226
Investments sold 20
Variation margin on futures 3
Other 50 1,199
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Total Assets 62,170
LIABILITIES
Payable for:
Investments purchased 1,134
Fund shares repurchased 184
Distributions 72
Payable to Advisor 7
Accrued:
Deferred Trustees fees 3
Other 8
-----------
Total Liabilities 1,408
------------
NET ASSETS $ 60,762
============
Net asset value & redemption price per share -
Class A ($29,526/3,742) $ 7.89(a)
============
Maximum offering price per share - Class A
($7.89/0.9525) $ 8.28(b)
============
Net asset value & offering price per share -
Class B ($30,891/3,915) $ 7.89(a)
============
Net asset value & offering price per share -
Class C ($345/44) $ 7.89(a)
============
COMPOSITION OF NET ASSETS
Capital paid in $ 58,306
Overdistributed net investment income (68)
Accumulated net realized loss (1,155)
Net unrealized appreciation on:
Investments 3,626
Open futures contracts 53
------------
$ 60,762
============
(a) Redemption price per share is equal to net asset value less any applicable
contingent deferred sales charge.
(b) On sales of $50,000 or more the offering price is reduced. See notes to
financial statements.
13
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STATEMENT OF OPERATIONS
FOR THE YEAR ENDED JANUARY 31, 1999
(in thousands)
INVESTMENT INCOME
Interest $ 3,383
EXPENSES
Management fee $ 313
Service fee 112
Distribution fee - Class B 239
Distribution fee - Class C 1
Transfer agent 91
Bookkeeping fee 31
Trustees fee 11
Custodian fee 6
Audit fee 18
Legal fee 7
Registration fee 13
Reports to shareholders 9
Other 13
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Total expenses 864
Fees waived by the Advisor (105)
Fees waived by the Distributor - Class C (a)
Custodian credits earned (6) 753
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Net Investment Income 2,630
------------
NET REALIZED & UNREALIZED GAIN (LOSS) ON PORTFOLIO POSITIONS
Net realized gain on:
Investments 1,132
Closed futures contracts 36
-----------
Net Realized Gain 1,168
Change in net unrealized appreciation
(depreciation) during the period on:
Investments (290)
Open futures contracts 74
-----------
Net Unrealized Depreciation (216)
------------
Net Gain 952
------------
Increase in Net Assets from Operations $ 3,582
============
(a) Rounds to less than one.
See notes to financial statements.
14
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STATEMENT OF CHANGES IN NET ASSETS
(in thousands) Year ended January 31
-----------------------
INCREASE (DECREASE) IN NET ASSETS 1999 1998 (a)
Operations:
Net investment income $ 2,630 $ 3,057
Net realized gain 1,168 432
Net unrealized appreciation (depreciation) (216) 2,670
-------- --------
Net Increase from Operations 3,582 6,159
Distributions:
From net investment income - Class A (1,444) (1,611)
In excess of net investment income - Class A (36) --
From net investment income - Class B (1,264) (1,489)
In excess of net investment income - Class B (31) --
From net investment income - Class C (8) (2)
In excess of net investment income - Class C (b) --
-------- --------
799 3,057
-------- --------
Fund Share Transactions:
Receipts for shares sold - Class A 3,338 3,939
Value of distributions reinvested - Class A 664 723
Cost of shares repurchased - Class A (7,013) (5,290)
-------- --------
(3,011) (628)
-------- --------
Receipts for shares sold - Class B 3,553 4,014
Value of distributions reinvested - Class B 432 446
Cost of shares repurchased - Class B (7,166) (5,689)
-------- --------
(3,181) (1,229)
-------- --------
Receipts for shares sold - Class C 417 100
Value of distributions reinvested - Class C 7 2
Cost of shares repurchased - Class C (187) --
-------- --------
237 102
-------- --------
Net Decrease from Fund
Share Transactions (5,955) (1,755)
-------- --------
Total Increase (Decrease) (5,156) 1,302
NET ASSETS
Beginning of period 65,918 64,616
-------- --------
End of period (net of overdistributed and
including undistributed net investment
income of $68 and $86, respectively) $ 60,762 $ 65,918
======== ========
(a) Class C shares were initially offered on August 1, 1997.
(b) Rounds to less than one.
See notes to financial statements.
15
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS - CONT.
(in thousands) Year ended January 31
-----------------------
NUMBER OF FUND SHARES 1999 1998 (a)
Sold - Class A 429 523
Issued for distributions reinvested - Class A 86 96
Repurchased - Class A (902) (700)
----- -----
(387) (81)
----- -----
Sold - Class B 458 532
Issued for distributions reinvested - Class B 56 59
Repurchased - Class B (922) (756)
----- -----
(408) (165)
----- -----
Sold - Class C 54 13
Issued for distributions reinvested - Class C 1 (b)
Repurchased - Class C (24) --
----- -----
31 13
----- -----
(a) Class C shares were initially offered on August 1, 1997.
(b) Rounds to less than one.
16
<PAGE>
NOTES TO FINANCIAL STATEMENTS
JANUARY 31, 1999
NOTE 1. ACCOUNTING POLICIES
- --------------------------------------------------------------------------------
Organization: Colonial Florida 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 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 three classes of shares: Class A, Class B, and Class C.
Class A shares are sold with a front-end sales charge and a 1.00% contingent
deferred sales charge on redemptions made within eighteen months on an original
purchase of $1 million to $5 million. Class B shares 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. Class C shares are subject to a contingent deferred sales charge on
redemptions made within one year after purchase and an annual distribution fee.
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 for which market quotations are not readily available 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.
17
<PAGE>
Notes to Financial 7 Statements/January 31, 1999
- --------------------------------------------------------------------------------
NOTE 1. ACCOUNTING POLICIES - CONT.
- --------------------------------------------------------------------------------
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 and Class C distribution fees), 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 and Class C 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 and Class C 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 Advisor) is the
investment Advisor of the Fund and furnishes accounting and other services and
office facilities for a monthly fee based on the Fund's pro-rata portion of the
combined average net assets of the funds constituting Trust V as follows:
Average Net Assets Annual Fee Rate
------------------ ---------------
First $2 billion 0.50%
Over $2 billion 0.45%
Bookkeeping fee: The Advisor 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: Liberty Funds Services, Inc., formerly Colonial Investors
Service Center, Inc., (the Transfer Agent), an affiliate of the Advisor,
provides shareholder services for a monthly fee equal to 0.13% annually of the
Fund's average net assets and receives reimbursement for certain out-of-pocket
expenses.
18
<PAGE>
Notes to Financial Statements/January 31, 1999
- --------------------------------------------------------------------------------
Underwriting discounts, service and distribution fees: Liberty Funds
Distributor, Inc., formerly Liberty Financial Investments, Inc. (the
Distributor), a subsidiary of the Advisor, is the Fund's principal underwriter.
For the year ended January 31, 1999, the Fund has been advised that the
Distributor retained net underwriting discounts of $5,840 on sales of the Fund's
Class A shares and received contingent deferred sales charges (CDSC) of none,
$117,713, and none on Class A, Class B, and Class C share redemptions,
respectively.
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 and Class C shares. The Distributor has voluntarily
agreed, until further notice, to waive a portion of the Class C share
distribution fee so that it does not exceed 0.45% annually. The plan also
requires the payment of a service fee to the Distributor as follows:
Valuation of shares Annual
outstanding on the 20th of Fee
each month which were issued Rate
---------------------------- ----
Prior to November 30, 1994 0.10%
On or after December 1, 1994 0.25%
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 Advisor 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. Through October 30, 1998, the expense limit was 0.60% of the Fund's
average net assets.
Other: The Fund pays no compensation to its officers, all of whom are employees
of the Advisor.
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.
The Fund has an agreement with its custodian bank under which custodian fees
were reduced by balance credits of $5,909 applied during the year ended January
31, 1999. The Fund could have invested a portion of the assets utilized in
connection with the expense offset arrangements in an income producing asset if
it had not entered into such an agreement.
19
<PAGE>
Notes to Financial Statements/January 31, 1999
- --------------------------------------------------------------------------------
NOTE 3. PORTFOLIO INFORMATION
- --------------------------------------------------------------------------------
Investment activity: For the year ended January 31, 1999, purchases and sales of
investments, other than short-term obligations, were $30,217,058 and
$36,015,259, respectively.
Unrealized appreciation (depreciation) at January 31, 1999, based on cost of
investments for both financial statement and federal income tax purposes was:
Gross unrealized appreciation 3,637,744
Gross unrealized depreciation (11,515)
------------
Net unrealized appreciation $ 3,626,229
============
Capital loss carryforwards: At January 31, 1999, capital loss carryforwards
available (to the extent provided in regulations) to offset future realized
gains were approximately as follows:
Year of Capital loss
expiration carryforward
------------- --------------
2004 $ 511,000
2005 41,000
------------
$ 552,000
============
Expired capital loss carryforwards, if any, are recorded as a reduction of
capital paid in.
To the extent loss carryforwards are used to offset any future realized gains,
it is unlikely that such gains would be distributed since they may be taxable to
shareholders as ordinary income.
Other: There are certain risks arising from geographic concentration in any
state. Certain revenue or tax related events in a state may impair the ability
of certain issuers of municipal securities to pay principal and interest on
their obligations.
The Fund may focus its investments in certain industries, subjecting it to
greater risk than a fund that is more diversified.
The Fund 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 Advisor of the future direction of interest rates. Any of these risks may
involve amounts exceeding the amount recorded in the Fund's Statement of Assets
and Liabilities at any given time.
20
<PAGE>
Notes to Financial Statements/January 31, 1999
- --------------------------------------------------------------------------------
NOTE 4. LINE OF CREDIT
- --------------------------------------------------------------------------------
The Fund may borrow up to 33 1/3% 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, 1999.
NOTE 5. RESULTS OF SPECIAL MEETING OF SHAREHOLDERS (UNAUDITED)
- --------------------------------------------------------------------------------
On October 30, 1998, a Special Meeting of Shareholders of the Fund was held to
approve the following items, all as described in the Proxy Statement for the
Meeting. On August 21, 1998, the record date for the Meeting, the Fund had
outstanding 8,135,483 shares of beneficial interest. The votes cast at the
Meeting were as follows:
Authority
For Withheld
--- --------
To Elect a Board of Trustees.
Robert J. Birnbaum 4,659,312 94,073
Tom Bleasdale 4,651,379 102,006
John Carberry 4,649,269 104,106
Lora S Collins 4,662,711 90,674
James E. Grinnell 4,663,747 89,638
Richard W. Lowry 4,654,869 98,516
Salvatore Macera 4,651,496 101,889
William E. Mayer 4,662,980 90,405
James L Moody, Jr. 4,676,156 77,229
John J Neuhauser 4,663,958 89,427
Thomas E. Stitzel 4,664,069 89,316
Robert L. Sullivan 4,663,087 90,298
Anne-Lee Verville 4,655,943 97,442
To amend fundamental investment policies regarding borrowing and lending.
For Against Abstain
--- ------- -------
3,525,502 328,660 225,364
To approve policies for a master fund/feeder structure.
For Against Abstain
--- ------- -------
3,499,698 314,972 264,856
21
<PAGE>
FINANCIAL HIGHLIGHTS
Selected data for a share of each class outstanding throughout each period are
as follows:
<TABLE>
<CAPTION>
Year ended January 31
-------------------------------------------
1999
Class A Class B Class C
------------- ------------ ------------
<S> <C> <C> <C>
Net asset value -
Beginning of period $ 7.790 $ 7.790 $ 7.790
------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (a) 0.356 0.296 0.320(c)
Net realized and
unrealized gain (loss) 0.119 0.119 0.119
------------ ------------ ------------
Total from Investment
Operations 0.475 0.415 0.439
------------ ------------ ------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.366) (0.307) (0.331)
In excess of net
investment income (0.009) (0.008) (0.008)
------------ ------------ ------------
Total Distributions Declared
to Shareholders (0.375) (0.315) (0.339)
------------ ------------ ------------
Net asset value -
End of period $ 7.890 $ 7.890 $ 7.890
============ ============ ============
Total return (e)(f) 6.29% 5.48% 5.80%
============ ============ ============
RATIOS TO AVERAGE NET ASSETS
Expenses (h) 0.82% 1.57% 1.27%(c)
Interest expense -- -- --
Net investment income (h) 4.59% 3.84% 4.14%(c)
Fees waived by
the Advisor (h) 0.17% 0.17% 0.17%
Portfolio turnover 50% 50% 50%
Net assets at end
of period (000) $ 29,526 $ 30,891 $ 345
(a) Net of fees and expenses waived or borne by the Advisor which amounted to:
$0.013 $0.013 $0.013
</TABLE>
(b) Class C shares were initially offered on August 1, 1997. Per share
amounts reflect activity from that date.
(c) Net of fees waived by the Distributor which amounted to $0.023 per
share and 0.30%.
(d) Net of fees waived by the Distributor which amounted to $0.012 per
share and 0.30%.
(e) Total return at net asset value assuming all distributions reinvested
and no initial sales charge or contingent deferred sales charge.
(f) Had the Advisor and Distributor not waived or reimbursed a portion of
expenses, total return would have been reduced.
22
<PAGE>
FINANCIAL HIGHLIGHTS - CONT.
Selected data for a share of each class outstanding throughout each period are
as follows:
Year ended January 31
- --------------------------------------------------------------------------
1998 1997
Class A Class B Class C(b) Class A Class B
- ---------- ---------- ---------- ---------- ----------
$ 7.430 $ 7.430 $ 7.710 $ 7.620 $ 7.620
- ---------- ---------- ---------- ---------- ----------
0.388 0.332 0.172(d) 0.395 0.340
0.361 0.361 0.082 (0.194) (0.194)
- ---------- ---------- ---------- ---------- ----------
0.749 0.693 0.254 0.201 0.146
- ---------- ---------- ---------- ---------- ----------
(0.389) (0.333) (0.174) (0.391) (0.336)
-- -- -- -- --
- ---------- ---------- ---------- ---------- ----------
(0.389) (0.333) (0.174) (0.391) (0.336)
- ---------- ---------- ---------- ---------- ----------
$ 7.790 $ 7.790 $ 7.790 $ 7.430 $ 7.430
========== ========== ========== ========== ==========
10.37% 9.55% 3.35%(g) 2.80% 2.03%
========== ========== ========== ========== ==========
0.59% 1.34% 1.04%(d)(j) 0.56% 1.31%
-- -- -- (i) (i)
5.08% 4.33% 4.63%(d)(j) 5.31% 4.56%
0.41% 0.41% 0.40%(j) 0.44% 0.44%
32% 32% 32% 69% 69%
$ 32,150 $ 33,665 $ 103 $ 31,275 $ 33,341
$ 0.031 $ 0.031 $ 0.031 $ 0.032 $ 0.032
(g) Not annualized.
(h) In 1999 and 1998, the benefits derived from custody credits and directed
brokerage arrangements had an impact of 0.01% and $0.001 per share.
(i) Rounds to less than 0.01%.
(j) Annualized.
- --------------------------------------------------------------------------------
Federal Income Tax Information (unaudited)
Approximately 98.94% of the income distributions will be treated as exempt
income for federal income tax purposes.
- --------------------------------------------------------------------------------
23
<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
----------------------------------------------------------------
1996 1995
Class A Class B Class A Class B
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Net asset value -
Beginning of period $ 7.100 $ 7.100 $ 7.930 $ 7.930
---------- ---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (a) 0.404 0.351 0.423 0.369
Net realized and
unrealized gain (loss) 0.535 0.533 (0.839) (0.839)
---------- ---------- ---------- ----------
Total from Investment
Operations 0.939 0.884 (0.416) (0.470)
---------- ---------- ---------- ----------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.419) (0.364) (0.414) (0.360)
---------- ---------- ---------- ----------
Net asset value -
End of period $ 7.620 $ 7.620 $ 7.100 $ 7.100
========== ========== ========== ==========
Total return (b)(c) 13.55% 12.72% (5.11)% (5.83)%
========== ========== ========== ==========
RATIOS TO AVERAGE NET ASSETS
Expenses 0.45%(d) 1.18%(d) 0.22% 0.97%
Net investment
income 5.45%(d) 4.72%(d) 5.92% 5.17%
Fees waived or borne
by the Advisor 0.55%(d) 0.55%(d) 0.73% 0.73%
Portfolio turnover 83% 83% 45% 45%
Net assets at end
of period (000) $ 32,599 $ 35,741 $ 27,498 $ 31,116
(a) Net of fees and expenses waived or borne by the Advisor which amounted to:
$ 0.040 $ 0.040 $ 0.052 $ 0.052
</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 Advisor 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 year's ratios are net of benefits
received, if any.
24
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
T0 THE TRUSTEES OF COLONIAL TRUST V AND THE SHAREHOLDERS OF COLONIAL FLORIDA
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 Florida Tax-Exempt Fund
(the "Fund") (a series of Colonial Trust V), at January 31, 1999, 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, 1999 by correspondence with
the custodian and brokers, provide a reasonable basis for the opinion expressed
above.
PricewaterhouseCoopers LLP
Boston, Massachusetts
March 11, 1999
25
<PAGE>
HOW TO REACH US
BY PHONE OR BY MAIL
BY TELEPHONE
Customer Connection - 1-800-345-6611
For 24-hour account information, call from your touch-tone phone. (Rotary
callers will be automatically connected to a representative during business
hours.) A recorded message will guide you through the menu:
For fund prices, dividends and capital gains information .............press |1|
For account information ..............................................press |2|
To speak to a service representative .................................press |3|
For yield and total return information ...............................press |4|
For duplicate statements or new supply of checks .....................press |5|
To order duplicate tax forms and year-end statements .................press |6|
(February through May)
To review your options at any time during your call ..................press |*|
To speak with a shareholder services representative about your account, call
Monday to Friday, 8:00 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.
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 fund distributed by Liberty Funds Distributor,
Inc., call Monday to Friday, 8:30 a.m. to 6:30 p.m. ET.
BY MAIL
Liberty Funds Services, Inc.
P.O. Box 1722
Boston, MA 02105-1722
26
<PAGE>
IMPORTANT INFORMATION ABOUT THIS REPORT
The Transfer Agent for Colonial Florida Tax-Exempt Fund is:
Liberty Funds Services, Inc.*
P.O. Box 1722
Boston, MA 02105-1722
1-800-345-6611
Colonial Florida Tax-Exempt Fund mails one shareholder report to each
shareholder address. If you would like more than one report, please call
1-800-426-3750 and additional reports will be sent to you.
This report has been prepared for shareholders of Colonial Florida
Tax-Exempt Fund. This report may also be used as sales literature when preceded
or accompanied by the current prospectus which provides details of sales
charges, investment objectives and operating policies of the Fund, and the most
recent copy of the Liberty Funds Distributor, Inc. Performance Update.
*Effective October 1, 1998, Colonial Investors Service Center, Inc. -- the
Transfer Agent for Colonial, Crabbe Huson, Newport and Stein Roe Advisor Funds
- -- changed its name to Liberty Funds Services, Inc.
27
<PAGE>
- --------------------------------------------------------------------------------
TRUSTEES
ROBERT J. BIRNBAUM
Consultant (formerly Special Counsel, Dechert, Price & Rhoads; President and
Chief Operating Officer, New York Stock Exchange, Inc.; President, American
Stock Exchange, Inc.)
TOM BLEASDALE
Retired (formerly Chairman of the Board and Chief Executive Officer, Shore Bank
& Trust Company)
JOHN CARBERRY
Senior Vice President of Liberty Financial Companies, Inc. (formerly Managing
Director, Salomon Brothers)
LORA S. COLLINS
Attorney (formerly Attorney, Kramer, Levin, Naftalis & Frankel)
JAMES E. GRINNELL
Private Investor (formerly Senior Vice President-Operations, The Rockport
Company)
RICHARD W. LOWRY
Private Investor (formerly Chairman and Chief Executive Officer, U.S. Plywood
Corporation)
SALVATORE MACERA
Private Investor (formerly Executive Vice President of Itek Corp. and President
of Itek Optical & Electronic Industries, Inc.)
WILLIAM E. MAYER
Partner, Development Capital, LLC (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, Chief Executive Officer and Director,
Hannaford Bros. Co.)
JOHN J. NEUHAUSER
Dean, Boston College School of Management
THOMAS E. STITZEL
Professor of Finance, College of Business, Boise State University; Business
Consultant and Author
ROBERT L. SULLIVAN
Retired Partner, KPMG, LLP (formerly Management Consultant, Saatchi and Saatchi
Consulting Ltd. and Principal and International Practice Director, Management
Consulting, Peat Marwick Main & Co.)
ANNE-LEE VERVILLE
Consultant (formerly General Manager, Global Education Industry, and President,
Applications Solutions Division, IBM Corporation)
[LOGO] L I B E R T Y
COLONIAL o CRABBE HUSON o NEWPORT o STEIN ROE ADVISOR
Liberty Funds Distributor, Inc. (C)1999
One Financial Center, Boston, MA 02111-2621, 1-800-426-3750
Visit us at www.libertyfunds.com FL-02/683G-0199 (3/99) 99/295
- --------------------------------------------------------------------------------
