COLONIAL NEWPORT TIGER FUND Semiannual Report
June 30, 1997
- ----------------------------------------
Not FDIC May Lose Value
Insured No Bank Guarantee
- ----------------------------------------
<PAGE>
COLONIAL NEWPORT TIGER FUND HIGHLIGHTS
JANUARY 1, 1997 - JUNE 30, 1997
Investment Objective: Colonial Newport Tiger Fund seeks capital appreciation
by investing primarily in equity securities of companies located in the nine
"Tigers" of Asia -- Hong Kong, Singapore, South Korea, Taiwan, Malaysia,
Thailand, Indonesia, China and the Philippines.
The Fund is Designed to Offer:
[checkmark] Access to some of the world's fastest-growing economies
[checkmark] Long-term growth potential
[checkmark] Experienced management
Portfolio Manager Commentary: "We believe Hong Kong will continue to be an
influencing factor that will impact the Fund's holdings in the future. We
also believe that China wants to show the world it can stimulate Hong Kong's
economy as well as the British did." -- Jack Mussey & Tim Tuttle
Colonial Newport Tiger Fund Performance(1)
Class A Class T Class Z
Inception dates 5/31/89 5/31/89 5/31/89
- --------------------------------------------------------------------------------
Distributions declared per share $0.042 $0.043 $0.043
- --------------------------------------------------------------------------------
Six-month total returns, assuming 3.73% 3.95% 3.95%
reinvestment of all distributions and
no sales charge
- --------------------------------------------------------------------------------
Net asset value per share on 6/30/97 $14.22 $14.25 $14.25
- --------------------------------------------------------------------------------
(1) The Fund was originally introduced on 5/31/89 and became Colonial Newport
Tiger Fund on 4/1/95. Class A, B, D, T and Z shares were offered at that time.
Performance for Class B and D shares appears on page 6.
Top Five Countries(2)
(as of 6/30/97)
..................................................................
1. Hong Kong.. . . . . . . . . . . . . . . . . . . . . 61.7%
2. Singapore.. . . . . . . . . . . . . . . . . . . . . 20.3%
3. Malaysia .. . . . . . . . . . . . . . . . . . . . . 9.6%
4. Indonesia.. . . . . . . . . . . . . . . . . . . . . 3.8%
5. Philippines.. . . . . . . . . . . . . . . . . . . . 2.8%
Top Five Sectors(2)
(as of 6/30/97)
..................................................................
1. Financial Services. . . . . . . . . . . . . . . . . 29.8%
2. Utilities. . . . . . . . . . . . . . . . . . . . . . 20.6%
3. Consumer Cyclicals. . . . . . . . . . . . . . . . . 17.7%
4. Capital Goods. . . . . . . . . . . . . . . . . . . . 8.0%
5. Technologies. . . . . . . . . . . . . . . . . . . . 6.6%
(2) Country and sector weightings are calculated as a percentage of total net
assets. Because the Fund is actively managed, there can be no guarantee it will
continue to maintain these country and sector weightings in the future. Industry
sectors in the following financial statements are based upon the standard
industrial classifications (SIC) published by the U.S. Office of Management and
Budget. The sector classifications used on this page are based upon Newport's
defined criteria used in the investment process.
2
<PAGE>
PRESIDENT'S MESSAGE
TO FUND SHAREHOLDERS
The Tiger markets in which your Fund invests have each
offered highly distinctive performance for the six
months ended June 30, 1997. Excluding China, performance [photo: Harold
has ranged from up 27.0% for Taiwan to down 35.7% in W. Cogger]
Thailand.
Thailand had grossly over-invested in real estate during the last couple of
years, and in the first quarter of 1997 its overheated economy finally started
to break down. Other Tiger countries, although not nearly as leveraged, began
raising interest rates to avoid the same problem. Difficulty in Thailand,
coupled with political uncertainty over the succession of power in Indonesia,
drove many investors to reallocate assets to other foreign markets. This in
turn, caused a lack of liquidity in Asia. The result was disappointing first
quarter performance for the Fund.
This down quarter, however, represented a classic buying opportunity in many of
the Tiger countries, that paid off strongly for us in the second quarter as
investors realized Thailand was an isolated situation. Optimism over Hong Kong's
return to China also helped improve second quarter performance. Your Fund's
Class A shares' return for the second quarter was 11.4%. This helped to offset
the first quarter's disappointing performance, resulting in a total return of
3.7% year to date.
This report will provide you with a closer look at the Fund's performance and
the portfolio managers' investment strategy during the past six months. Looking
forward, Tiger economies continue to appear promising. While some Southeast Asia
economies may be slowing, Singapore should begin rebounding and we expect China
to keep up its fast growth with a strong cycle that could last two to three
years.
We appreciate your continued confidence in the Fund and thank you for giving us
the opportunity to serve your investment needs.
Respectfully,
/s/ Harold W. Cogger
Harold W. Cogger
President
August 12, 1997
Because market conditions change frequently, there can be no assurance that the
trends described here will continue.
3
<PAGE>
PORTFOLIO MANAGEMENT REPORT
[photo of Jack Mussey is president and chief executive officer of
Jack Mussey] Newport Fund Management, Inc., and portfolio co-manager of
Colonial Newport Tiger Fund. Mr. Mussey has more than 20 years
of experience investing in Asian markets. He is a Chartered
Financial Analyst and a member of the Security Analysts of San
Francisco. Mr. Mussey received a BA from the University of
Redlands in 1963 and an MBA from the University of California
at Berkeley in 1965.
[photo of Tim Tuttle is managing director of Newport Fund Management,
Tim Tuttle] Inc., and portfolio co-manager of Colonial Newport Tiger Fund.
He has more than 20 years of experience investing in Asian
markets and is a Chartered Financial Analyst. He received a BA
from Williams College in 1964.
Turning obstacles into opportunity
When economic concerns and political uncertainty drew the Tiger region's
performance down during the first quarter of this year, some investors radical
radically reallocated capital into other markets. Because Newport takes a
long-term approach to investing in the Tigers, we saw the situation as a classic
buying opportunity.
While our long-term approach hindered the Fund's performance during the first
quarter, second quarter performance more than made up for it. Although
Thailand's market kept going down, Hong Kong performed extremely well, as
investors saw new opportunities resulting from its return to Chinese
sovereignty. Also sparking performance were blue chip stocks that generated
positive returns as well as "red chips." Red chip stocks are mainland Chinese
companies listed on the Hong Kong Exchange. The Tiger Fund has selected red chip
holdings.
Adjusting allocations
We made several adjustments to the portfolio's composition throughout the past
six months. Given Thailand's economic downturn, we reduced our holdings there to
only 1.1% of the Fund, while we increased investments in Hong Kong/China to
61.7% and in Singapore to 20.3%. Malaysia, Indonesia, the Philippines and Taiwan
rounded out the portfolio at 9.6%, 3.8%, 2.8% and 0.6%, respectively. We
maintained 5.1% of the portfolio in cash or cash equivalents.
Hong Kong continues to be the greatest contributor to the Fund's performance. We
see tremendous business opportunities resulting from Hong Kong's historic
reunification with mainland China. Money is flowing from mainland China into
Hong Kong to finance infrastructure projects and support its continued strong
growth. Hong Kong is making significant investments in China as businesses
establish operations there.
4
<PAGE>
Singapore's market has also been very attractive. Its highly cyclical
electronics industry has bottomed out, and appears poised for a turnaround in
coming months.
Strong performance in several sectors
Several sectors have contributed to the economic growth in the Tiger countries
and offer great opportunities for investors.
Hong Kong's property market is booming, as citizens with growing incomes are
looking to improve their housing. Some property development companies are
showing average annual growth of 20%, and it's likely these companies will
benefit from expanding development in China.
Hong Kong's banking industry is regarded among the best in the world. Financial
institutions in Hong Kong are conservative in terms of capitalization, with good
loan-to-deposit ratios and steady growth.
Utilities are another important industry in the growing Tiger region, and the
Fund holds some strong performers in this sector. In the first quarter of 1997,
we increased our holdings of Hong Kong Telecom because of its attractive yield,
and the potential for expansion into China. Although Hong Kong gas and electric
stocks performed poorly in the first quarter, the sector showed gains of 20% -
30% in the second quarter.
Once again, our long-term perspective paid off, as did our concentration on only
the highest quality companies in Asia. We believe quality of management plays an
important role in a company's performance. Citic Pacific, a red chip stock, is a
good example of the kind of quality company we like to have in our portfolio.
This Chinese company has a solid management team that thoroughly understands the
power industry. Over the past five years, Citic Pacific has maintained an
average annual earnings growth rate of over 30%.
Looking forward
We continue to be optimistic about the long-term growth potential in the Tiger
countries of Asia. The region's pro-business governments, high savings and
investment rates, and well-educated, productive work forces have contributed to
the region's strong economic performance. As foreign investors return to the
area, the Tigers are likely to use the funding to further develop their
infrastructure to sustain long-term growth.
As the outlook for Singapore improves, and the reunification of Hong Kong with
China continues to go well, Colonial Newport Tiger Fund will continue to offer
investors long-term growth potential from this dynamic growth region.
5
<PAGE>
Colonial Newport Tiger Fund Investment Performance vs.
The Morgan Stanley Capital International EAFE (GDP) Index
Change in Value of $10,000 from 5/31/89 - 6/30/97 Based on NAV and MOP
[typset representation of mountain chart]
CLASS A SHARES
NAV MOP MSCI EAFE
6/1/89(3) 10000 9425 10000
6/30/89 9940 9368 10186
7/31/89 10240 9651 11339
8/31/89 10040 9463 11081
9/30/89 10310 9717 11509
10/31/89 10060 9482 10965
11/30/89 10420 9821 11533
12/31/89 11080 10443 12404
1/31/90 11200 10556 12180
2/28/90 11360 10707 11637
3/31/90 11180 10537 11260
4/30/90 10537 9931 11111
5/31/90 11561 10896 11940
6/30/90 11842 11161 12062
7/31/90 12494 11776 12369
8/31/90 10688 10073 11024
9/30/90 9012 8494 9496
10/31/90 9664 9109 10678
11/30/90 9243 8711 10210
12/31/90 9403 8862 10216
1/31/91 9757 9196 10497
2/28/91 10626 10015 11596
3/31/91 10990 10358 10817
4/30/91 11364 10711 10849
5/31/91 11657 10987 11090
6/30/91 11435 10777 10226
7/31/91 11678 11006 10652
8/31/91 11202 10558 10580
9/30/91 10990 10358 11037
10/31/91 11152 10511 11005
11/30/91 11496 10835 10696
12/31/91 11849 11168 11312
1/31/92 12557 11835 11216
2/29/92 12951 12207 11064
3/31/92 12618 11892 10519
4/30/92 13336 12569 10610
5/31/92 14215 13398 11235
6/30/92 14256 13426 10869
7/31/92 13922 13122 10484
8/31/92 13386 12616 11006
9/30/92 13528 12750 10602
10/31/92 14963 14103 10172
11/30/92 14812 13960 10222
12/31/92 14458 13627 10220
1/31/93 14915 14057 10338
2/28/93 15747 14841 10700
3/31/93 15818 14908 11430
4/30/93 17025 16046 12483
5/31/93 17492 16486 12678
6/30/93 17127 16142 12459
7/31/93 17106 16123 12834
8/31/93 18141 17098 13774
9/30/93 18506 17442 13485
10/31/93 21479 20244 13856
11/30/93 21084 19871 12752
12/31/93 25350 23892 13649
1/31/94 24189 22798 14693
2/28/94 22946 21626 14612
3/31/94 20622 19437 14403
4/30/94 22069 20800 15130
5/31/94 23109 21780 14783
6/30/94 21865 20608 14776
7/31/94 23007 21684 15119
8/31/94 24352 22951 15376
9/30/94 24209 22817 14835
10/31/94 24515 23105 15286
11/30/94 22558 21261 14605
12/31/94 22317 21034 14715
1/31/95 20106 18950 14338
2/28/95 21987 20722 14322
3/31/95 22462 21171 14971
4/30/95 22504 21210 15640
5/31/95 25151 23705 15489
6/30/95 24820 23393 15316
7/31/95 25420 23958 16317
8/31/95 24572 23159 15636
9/30/95 25027 23588 15821
10/31/95 24862 23432 15363
11/30/95 24923 23491 15686
12/31/95 25948 24456 16358
1/31/96 28447 26811 16565
2/29/96 28447 26811 16615
3/31/96 28239 26615 16835
4/30/96 28135 26517 17359
5/31/96 27989 26380 17103
6/30/96 27364 25791 17237
7/31/96 25823 24338 16742
8/31/96 26760 25222 16733
9/30/96 27552 25967 17193
10/31/96 27364 25791 17005
11/30/96 28801 27145 17732
12/31/96 28785 27131 17605
1/31/97 28597 26953 17274
2/28/97 28556 26914 17394
3/31/97 26797 25256 17725
4/30/97 26315 24802 17682
5/31/97 28660 27012 18603
6/30/97 29858 28142 19711
[end mountain chart]
[typeset representation of mountain chart]
CLASS T SHARES
NAV MOP MSCI EAFE
6/1/89(3) 10000 9425 10000
6/30/89 9940 9368 10186
7/31/89 10240 9651 11339
8/31/89 10040 9463 11081
9/30/89 10310 9717 11509
10/31/89 10060 9482 10965
11/30/89 10420 9821 11533
12/31/89 11080 10443 12404
1/31/90 11200 10556 12180
2/28/90 11360 10707 11637
3/31/90 11180 10537 11260
4/30/90 10537 9931 11111
5/31/90 11561 10896 11940
6/30/90 11842 11161 12062
7/31/90 12494 11776 12369
8/31/90 10688 10073 11024
9/30/90 9012 8494 9496
10/31/90 9664 9109 10678
11/30/90 9243 8711 10210
12/31/90 9403 8862 10216
1/31/91 9757 9196 10497
2/28/91 10626 10015 11596
3/31/91 10990 10358 10817
4/30/91 11364 10711 10849
5/31/91 11657 10987 11090
6/30/91 11435 10777 10226
7/31/91 11678 11006 10652
8/31/91 11202 10558 10580
9/30/91 10990 10358 11037
10/31/91 11152 10511 11005
11/30/91 11496 10835 10696
12/31/91 11849 11168 11312
1/31/92 12557 11835 11216
2/29/92 12951 12207 11064
3/31/92 12618 11892 10519
4/30/92 13336 12569 10610
5/31/92 14215 13398 11235
6/30/92 14256 13426 10869
7/31/92 13922 13122 10484
8/31/92 13386 12616 11006
9/30/92 13528 12750 10602
10/31/92 14963 14103 10172
11/30/92 14812 13960 10222
12/31/92 14458 13627 10220
1/31/93 14915 14057 10338
2/28/93 15747 14841 10700
3/31/93 15818 14908 11430
4/30/93 17025 16046 12483
5/31/93 17492 16486 12678
6/30/93 17127 16142 12459
7/31/93 17106 16123 12834
8/31/93 18141 17098 13774
9/30/93 18506 17442 13485
10/31/93 21479 20244 13856
11/30/93 21084 19871 12752
12/31/93 25350 23892 13649
1/31/94 24189 22798 14693
2/28/94 22946 21626 14612
3/31/94 20622 19437 14403
4/30/94 22069 20800 15130
5/31/94 23109 21780 14783
6/30/94 21865 20608 14776
7/31/94 23007 21684 15119
8/31/94 24352 22951 15376
9/30/94 24209 22817 14835
10/31/94 24515 23105 15286
11/30/94 22558 21261 14605
12/31/94 22317 21034 14715
1/31/95 20106 18950 14338
2/28/95 21987 20722 14322
3/31/95 22483 21190 14971
4/30/95 22483 21190 15640
5/31/95 25131 23686 15489
6/30/95 24800 23374 15316
7/31/95 25420 23958 16317
8/31/95 24572 23159 15636
9/30/95 25027 23588 15821
10/31/95 24862 23432 15363
11/30/95 24944 23510 15686
12/31/95 25950 24458 16358
1/31/96 28472 26835 16565
2/29/96 28472 26835 16615
3/31/96 28264 26639 16835
4/30/96 28181 26560 17359
5/31/96 28035 26423 17103
6/30/96 27430 25853 17237
7/31/96 25888 24399 16742
8/31/96 26805 25264 16733
9/30/96 27618 26030 17193
10/31/96 27451 25873 17005
11/30/96 28868 27208 17732
12/31/96 28866 27206 17605
1/31/97 28698 27048 17274
2/28/97 28656 27008 17394
3/31/97 26893 25346 17725
4/30/97 26431 24911 17682
5/31/97 28782 27127 18603
6/30/97 30007 28282 19711
[end mountain chart]
A $10,000 investment in the following share classes, based on the maximum sales
charge for each class, would have been valued at the amount shown on 6/30/97:
Class B w/CDSC (inception 4/1/95) $12,758; Class D at MOP w/CDSC (inception
4/1/95) $12,943; Class Z (inception 5/31/89) $30,007. The Morgan Stanley Capital
International Europe, Australia and Far East GDP Index is a broad-based,
unmanaged index that tracks the performance of foreign stocks. Unlike mutual
funds, an index is not an investment, does not incur fees or expenses and is not
professionally managed.
Average Annual Total Returns
as of June 30, 1997 (Most Recent Quarter End)
- -------------------------------------------------------------------------------
1 year 5 years Since inception
- -------------------------------------------------------------------------------
Class A (Inception 5/31/89)
NAV 9.11% 15.95% 14.48%
MOP 2.84 14.59 13.65
- -------------------------------------------------------------------------------
Class B (Inception 4/1/95)
NAV 8.30 -- 12.58
w/CDSC 3.30 -- 11.42
- -------------------------------------------------------------------------------
Class D (4) (Inception 4/1/95)
NAV 8.33 -- 12.64
MOP w/CDSC 6.25 -- 12.14
- -------------------------------------------------------------------------------
Class T (Inception 5/31/89)
NAV 9.39 16.07 14.55
MOP 3.10 14.70 13.72
- -------------------------------------------------------------------------------
Class Z (Inception 5/31/89)
NAV 9.39 16.07 14.55
- -------------------------------------------------------------------------------
(3)The Fund was originally introduced on 5/31/89 and became Colonial Newport
Tiger Fund on 4/1/95. Class A,B, D, T and Z shares were offered at that time.
Total returns shown for Class A,T and Z shares include performance prior to Fund
conversion, at which time there was no 12b-1 fee on Class A shares. 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 all distributions. Net asset value (NAV) returns do not include
sales charges or contingent deferred sales charges (CDSC). Maximum offering
price (MOP) returns include the maximum sales charges for Class A shares of
5.75% and Class D shares of 1%. The CDSC returns reflect the maximum applicable
charges of 5% for one year and 3% since inception for Class B shares and 1% for
one year for Class D shares. (4) On July 1, 1997, Class D shares were converted
to Class C shares. Consult a current prospectus for more information.
6
<PAGE>
INVESTMENT PORTFOLIO
JUNE 30, 1997 (UNAUDITED, IN THOUSANDS)
COMMON STOCKS - 95.1% COUNTRY SHARES VALUE
- -----------------------------------------------------------------------
AGRICULTURE, FORESTRY & FISHING - 1.7%
Agriculture - Crops
Sime Darby Berhad Ma 10,000 $ 33,274
---------
- -----------------------------------------------------------------------
FINANCE, INSURANCE & REAL ESTATE - 59.4%
Depository Institutions - 20.6%
Development Bank of Singapore Ltd. Si 4,668 58,770
Guoco Group Ltd. HK 7,300 38,446
HSBC Holdings PLC HK 3,500 105,267
Hang Seng Bank HK 6,500 92,713
Oversea-Chinese Banking Corp. Ltd. Si 6,768 70,062
Public Bank Berhad Ma 15,805 24,668
Public Bank Berhad Si 3,333 5,199
---------
395,125
---------
Holding & Other Investment Companies - 20.2%
Cheung Kong Holdings Ltd. HK 9,500 93,811
Citic Pacific Ltd. HK 15,095 94,307
Guangdong Investments HK 40,000 60,152
Hutchinson Whampoa Ltd. HK 10,720 92,712
Singapore Technologies
Industrial Corp. Si 13,000 33,462
Taiwan Fund, Inc. Tw 477 12,032
---------
386,476
---------
Insurance Carriers - 0.3%
National Mutual Asia Ltd. HK 5,000 5,551
---------
Real Estate - 18.3%
Ayala Land, Inc., Class B Ph 3,750 3,448
China Overseas Land & Investment HK 48,680 39,273
China Resources Enterprises Ltd. HK 2,500 12,263
City Developments Ltd. Si 6,993 68,477
Filinvest Development Corp. Ph 23,000 5,494
New World Development Co., Ltd. HK 10,170 60,650
SM Prime Holdings, Inc. Ph 20,000 5,914
Sun Hung Kai Properties Ltd. HK 7,000 84,258
Swire Pacific Ltd., Series A HK 8,000 72,028
---------
351,805
---------
- -----------------------------------------------------------------------
MANUFACTURING - 6.2%
Chemicals & Allied Products - 0.7%
PT Kalbe Farma Reg In 6,338 8,470
7
<PAGE>
Investment Portfolio/June 30, 1997
- --------------------------------------------------------------------------------
COMMON STOCKS - CONT. COUNTRY SHARES VALUE
- -------------------------------------------------------------------
MANUFACTURING - CONT
Chemicals & Allied Products - Cont
PT Darya Varia Laboratoria (a) In 4,000 $ 4,811
---------
13,281
---------
Electronic & Electrical Equipment - 0.4%
Nylex Malaysia Berhad Ma 4,500 7,665
---------
Fabricated Metal - 0.7%
Kian Joo Can Factory Berhad Ma 3,300 14,248
---------
Measuring & Analyzing Instruments - 1.2%
China Hong Kong Photo Products HK 30,100 8,742
PT Modern Photo Film Reg. (a) In 4,005 14,162
---------
22,904
---------
Printing & Publishing - 3.2%
Singapore Press Holdings Ltd. Si 3,000 60,432
---------
- -------------------------------------------------------------------
RETAIL TRADE - 2.2%
Apparel & Accessory Stores - 0.8%
Giordano International Ltd. HK 21,555 14,747
---------
Auto Dealers & Gas Stations - 1.4%
Cycle & Carriage Ltd. Si 2,665 27,588
---------
- -------------------------------------------------------------------
SERVICES - 4.7%
Hotels, Camps & Lodging - 2.3%
Genting Berhad Ma 9,251 44,338
---------
Miscellaneous Repair Services - 2.4%
Keppel Corp., (a) Si 8,500 37,753
Keppel Corp., Class A, (a) Si 2,125 9,215
---------
46,968
---------
- -------------------------------------------------------------------
TRANSPORTATION, COMMUNICATION, ELECTRIC,
GAS & SANITARY SERVICES - 20.7%
Communications - 10.1%
Advanced Information Services Th 2,303 20,087
Hong Kong Telecommunications Ltd. HK 25,711 61,397
PT Indosat In 6,000 17,948
PT Telekomunikasi Indonesia In 14,500 23,699
Philippine Long Distance Telephone ADR Ph 550 35,338
Telekom Malaysia Berhad Ma 7,500 35,057
---------
193,526
---------
8
<PAGE>
Investment Portfolio/June 30, 1997
- --------------------------------------------------------------------------------
Electric Services - 4.2%
Hong Kong Electric Holdings Ltd. HK 20,000 $ 80,547
-----------
Gas Services - 6.4%
Hong Kong and China Gas Co., Ltd. HK 52,368 104,777
Petronas Gas Berhad Ma 4,590 16,727
-----------
121,504
-----------
- -----------------------------------------------------------------------------
WHOLESALE TRADE - 0.2%
Durable Goods
Li & Fung Ltd. HK 3,000 3,369
-----------
TOTAL COMMON STOCKS (cost of $1,427,822) 1,823,348
-----------
WARRANTS (a) - 0.0%
- -----------------------------------------------------------------------------
FINANCE, INSURANCE & REAL ESTATE - 0.0%
Holding & Other Investment Companies
Guangdong Investments
expires 07/30/99
(cost of $436) HK 4,000 862
-----------
TOTAL INVESTMENTS - 95.1% (cost of $1,428,258)(b) 1,824,210
-----------
SHORT-TERM OBLIGATIONS - 4.7% PAR
- -----------------------------------------------------------------------------
Federal Home Loan Mortgage Corp.,
6.000% (c) 07/01/97 $90,816 90,816
-----------
OTHER ASSETS & LIABILITIES, NET - 0.2% 2,911
- -----------------------------------------------------------------------------
NET ASSETS - 100% $1,917,937
-----------
NOTES TO INVESTMENT PORTFOLIO:
- --------------------------------------------------------------------------------
(a) Non-income producing.
(b) Cost for federal income tax purposes is the same.
(c) Rate represents yield at date of purchase.
Notes to investment portfolio continued on following page.
9
<PAGE>
Investment Portfolio/June 30, 1997
- --------------------------------------------------------------------------------
NOTES TO INVESTMENT PORTFOLIO - CONT.
Summary of Securities
by Country Country Value % of Total
- ---------------------------------------------------------------
Hong Kong HK $1,125,872 61.7
Singapore Si 370,959 20.3
Malaysia Ma 175,977 9.6
Indonesia In 69,090 3.8
Philippines Ph 50,193 2.8
Thailand Th 20,087 1.1
Taiwan Tw 12,032 0.7
---------- -----
$1,824,210 100.0
---------- -----
Certain securities are listed by country of underlying exposure but may
trade predominantly on other exchanges.
Acronym Name
- ------------ --------
ADR American Depository Receipt
See notes to financial statements.
10
<PAGE>
STATEMENT OF ASSETS & LIABILITIES
JUNE 30, 1997 (UNAUDITED)
(in thousands except for per share amounts and footnotes)
ASSETS
Investments at value (cost $1,428,258) $1,824,210
Short-term obligations 90,816
----------
1,915,026
Cash including foreign currencies (cost $5,178) 5,178
Receivable for:
Fund shares sold 5,718
Dividends 5,351
Other 36 16,283
-------------- ----------
Total Assets 1,931,309
LIABILITIES
Payable for:
Fund shares repurchased 7,862
Distributions to shareholders 2,310
Accrued:
Management fee 1,191
Administration fee 390
Service fee - Class A, Class B, Class D 275
Distribution fee - Class B 403
Distribution fee - Class D 71
Transfer agent fee 390
Bookkeeping fee 55
Deferred Trustees fees 2
Other 423
--------------
Total Liabilities 13,372
----------
NET ASSETS $1,917,937
===========
Continued on next page.
See notes to financial statements.
11
<PAGE>
STATEMENT OF ASSETS & LIABILITIES - CONT.
Net asset value & redemption price per share -
Class A ($622,293/43,755) $14.22
----------
Maximum offering price per share - Class A
($14.22/0.9425) $15.09(a)
----------
Net asset value & offering price per share -
Class B ($664,554/47,271) $14.06(b)
----------
Net asset value & redemption price per share -
Class D ($114,772/8,152) $14.08(b)
----------
Maximum offering price per share - Class D
($14.08/0.9900) $14.22
----------
Net asset value & redemption price per share -
Class T ($168,532/11,830) $14.25
----------
Maximum offering price per share - Class T
($14.25/0.9425) $15.12(a)
----------
Net asset value, offering & redemption price
per share - Class Z ($347,786/24,409) $14.25
----------
COMPOSITION OF NET ASSETS
Capital paid in $1,560,266
Undistributed net investment income 5,291
Accumulated net realized loss (43,567)
Net unrealized appreciation (depreciation) on:
Investments 395,952
Foreign currency transactions (5)
----------
$1,917,937
==========
(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.
12
<PAGE>
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1997
(UNAUDITED)
(in thousands)
INVESTMENT INCOME
Dividends $ 21,056
Interest 2,168
----------
Total Investment Income (net of nonrebatable
foreign taxes withheld at source which
amounted to $1,649) 23,224
EXPENSES
Management fee $ 6,928
Administration fee 2,268
Service fee - Class A, Class B, Class D 1,604
Distribution fee - Class B 2,255
Distribution fee - Class D 412
Transfer agent fee 2,718
Bookkeeping fee 322
Trustees fee 42
Custodian fee 639
Audit fee 17
Legal fee 7
Registration fee 97
Reports to shareholders 10
Other 49 17,368
-------------- ----------
Net Investment Income 5,856
----------
NET REALIZED & UNREALIZED GAIN (LOSS) ON PORTFOLIO POSITIONS
Net realized loss on:
Investments (43,558)
Foreign currency transactions (462)
--------------
Net Realized Loss (44,020)
Net unrealized appreciation
during the period on:
Investments 106,582
Foreign currency transactions 4
--------------
Net Unrealized Appreciation 106,586
----------
Net Gain 62,566
----------
Net Increase in Net Assets from Operations $ 68,422
==========
See notes to financial statements.
13
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
Six months
ended Year ended
(in thousands) June 30 December 31
-------------- ----------
INCREASE (DECREASE) IN NET ASSETS 1997 1996
Operations:
Net investment income $ 5,856 6,973
Net realized gain (loss) (44,020) 7,061
Net unrealized appreciation 106,586 113,043
-------------- ----------
Net Increase from Operations 68,422 127,077
-------------- ----------
Distributions:
From net investment income - Class A - (2,861)
From net realized gains - Class A (1,835) (174)
In excess of net realized gains - Class A (3) -
From net investment income - Class B - (204)
From net realized gains - Class B (1,973) (173)
In excess of net realized gains - Class B (3) -
From net investment income - Class D - (1)
From net realized gains - Class D (347) (33)
From net investment income - Class T (14) (1,264)
From net realized gains - Class T (497) (56)
In excess of net realized gains - Class T (1) -
From net investment income - Class Z (29) (2,480)
From net realized gains - Class Z (1,025) (109)
In excess of net realized gains - Class Z (1) -
-------------- ----------
62,694 119,722
-------------- ----------
Fund Share Transactions:
Receipts for shares sold - Class A 414,966 929,445
Value of distributions reinvested - Class A 1,400 2,555
Cost of shares repurchased - Class A (384,529) (593,997)
-------------- ----------
31,837 338,003
-------------- ----------
Receipts for shares sold - Class B 179,173 662,217
Value of distributions reinvested - Class B 1,405 342
Cost of shares repurchased - Class B (109,409) (228,641)
-------------- ----------
71,169 433,918
-------------- ----------
Receipts for shares sold - Class D 37,544 102,136
Value of distributions reinvested - Class D 199 31
Cost of shares repurchased - Class D (35,280) (19,435)
-------------- ----------
2,463 82,732
-------------- ----------
Receipts for shares sold - Class T 2,330 12,366
Value of distributions reinvested - Class T 415 1,077
Cost of shares repurchased - Class T (27,130) (41,025)
-------------- ----------
(24,385) (27,582)
-------------- ----------
See notes to financial statements.
14
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS - CONT.
(Unaudited)
Six months
ended Year ended
June 30 December 31
-------------- ----------
1997 1996
Receipts for shares sold - Class Z 41,500 187,095
Value of distributions reinvested - Class Z 5 1,995
Cost of shares repurchased - Class Z (71,225) (204,451)
-------------- ----------
(29,720) (15,361)
-------------- ----------
Net Increase from Fund Share Transactions 51,364 811,710
-------------- ----------
Total Increase 114,058 931,432
NET ASSETS
Beginning of period 1,803,879 872,447
-------------- ----------
End of period (including undistributed and
net of overdistributed net investment income
of $5,291 and $60, respectively) $ 1,917,937 $1,803,879
-------------- ----------
NUMBER OF FUND SHARES
Sold - Class A 30,998 69,916
Issued for distributions reinvested - Class A 99 189
Repurchased - Class A (28,697) (44,553)
-------------- ----------
2,400 25,552
-------------- ----------
Sold - Class B 13,430 50,191
Issued for distributions reinvested - Class B 101 26
Repurchased - Class B (8,211) (17,351)
-------------- ----------
5,320 32,866
-------------- ----------
Sold - Class D 2,825 7,708
Issued for distributions reinvested - Class D 14 2
Repurchased - Class D (2,652) (1,471)
-------------- ----------
187 6,239
-------------- ----------
Sold - Class T 172 924
Issued for distributions reinvested - Class T 29 80
Repurchased - Class T (2,018) (3,095)
-------------- ----------
(1,817) (2,091)
-------------- ----------
Sold - Class Z 3,055 14,054
Issued for distributions reinvested - Class Z 1 148
Repurchased - Class Z (5,321) (15,283)
-------------- ----------
(2,265) (1,081)
-------------- ----------
See notes to financial statements.
15
<PAGE>
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1997 (UNAUDITED)
NOTE 1. INTERIM FINANCIAL STATEMENTS
...............................................................................
In the opinion of management of Colonial Newport Tiger Fund (the Fund), a series
of Colonial Trust VII, the accompanying financial statements contain all normal
and recurring adjustments necessary for the fair presentation of the financial
position of the Fund at June 30, 1997, and the results of its operations, the
changes in its net assets and the financial highlights for the six months then
ended.
NOTE 2. ACCOUNTING POLICIES
...............................................................................
Organization: The Fund is a 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 seeks capital appreciation by
investing primarily in equity securities of companies located in the nine Tigers
of Asia (Hong Kong, Singapore, South Korea, Taiwan, Malaysia, Thailand,
Indonesia, China and the Philippines). The Fund may issue an unlimited number of
shares. The Fund offers five classes of shares: Class A, Class B, Class D, Class
T and Class Z. Class A shares are sold with a front-end sales charge and 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 D shares are subject to a reduced
front-end sales charge, a contingent deferred sales charge on redemptions made
within one year after purchase and a continuing distribution fee. Class T shares
are sold with a front-end sales charge and Class Z shares are offered
continuously at net asset value. There are certain restrictions on the purchase
of Class T shares and Class Z shares, please refer to a prospectus.
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 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: Equity securities are valued at the last
sale price or, in the case of unlisted or listed securities for which there were
no sales during the day, at current quoted bid prices. In certain countries, the
Fund may hold foreign designated shares. If the foreign share prices are not
readily available as a result of limited share activity, the securities are
valued at the last sale price of the local shares in the principal market in
which such securities are normally traded. Korean equity securities that have
reached the limit for aggregate foreign ownership and
16
<PAGE>
Notes to Financial Statements/June 30, 1997
- --------------------------------------------------------------------------------
for which premiums to the local exchange prices may be paid by foreign investors
are valued by applying a broker quoted premium to the local share price.
Forward currency contracts are valued based on the weighted value of the
exchange traded contracts with similar durations.
Short-term obligations with a maturity of 60 days or less are valued at
amortized cost.
The value of all assets and liabilities quoted in foreign currencies are
translated into U.S. dollars at that day's exchange rates. In certain countries,
the Fund may hold portfolio positions which cannot be valued as set forth above.
Such securities 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 and losses are based upon the specific
identification method for both financial statement and federal income tax
purposes.
Determination of class net asset values and financial highlights: All income,
expenses (other than the Class A, Class B and Class D service fee and Class B
and Class D 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.
The per share data was calculated using average shares outstanding during the
period. In addition, Class A, Class B and Class D net investment income per
share data reflects the service fee per share applicable to Class A, Class B and
Class D shares and the distribution fee applicable to Class B and Class D shares
only.
Class A, Class B and Class D ratios are calculated by adjusting the expense and
net investment income ratios for the Fund for the entire period by the service
fee applicable to Class A, Class B and Class D shares and the distribution fee
applicable to Class B and Class D 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 income, no
federal income tax has been accrued.
Distributions to shareholders: Distributions to shareholders are recorded on the
ex-date.
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.
17
<PAGE>
Notes to Financial Statements/June 30, 1997
- --------------------------------------------------------------------------------
NOTE 2. ACCOUNTING POLICIES - CONT.
...............................................................................
Foreign currency transactions: Net realized and unrealized gains (losses) on
foreign currency transactions includes the fluctuation in exchange rates on
gains (losses) between trade and settlement dates on securities transactions,
gains (losses) arising from the disposition of foreign currency, and currency
gains (losses) between the accrual and payment dates on dividends and interest
income and foreign withholding taxes.
The Fund does not distinguish that portion of gains (losses) on investments
which is due to changes in foreign exchange rates from that which is due to
changes in market prices of the investments. Such fluctuations are included with
the net realized and unrealized gains (losses) from investments.
Forward currency contracts: The Fund may enter into forward currency contracts
to purchase or sell foreign currencies at predetermined exchange rates in
connection with the settlement of purchases and sales of securities. The Fund
may also enter into forward currency contracts to hedge certain other foreign
currency denominated assets. The contracts are used to minimize the exposure to
foreign exchange rate fluctuations during the period between trade and
settlement date of the contracts. All contracts are marked-to-market daily,
resulting in unrealized gains (losses) which become realized at the time the
forward currency contracts are closed or mature. Realized and unrealized gains
(losses) arising from such transactions are included in net realized and
unrealized gains (losses) on foreign currency transactions. Forward currency
contracts do not eliminate fluctuations in the prices of the Fund's portfolio
securities. While the maximum potential loss from such contracts is the
aggregate face value in U.S. dollars at the time the contract is opened, the
actual exposure is typically limited to the change in value of the contract (in
U.S. dollars) over the period it remains open. Risks may also arise if
counterparties fail to perform their obligations under the contracts.
Other: Corporate actions are recorded on the ex-date (except for certain foreign
securities which are recorded as soon after ex-date as the Fund becomes aware of
such), net of nonrebatable tax withholdings. Where a high level of uncertainty
as to collection exists, income on securities is recorded net of all tax
withholdings with any rebates recorded when received.
The Fund's custodian takes possession through the federal book-entry system of
securities collateralizing repurchase agreements. Collateral is marked-to-market
daily to ensure that the market value of the underlying assets remains
sufficient to protect the Fund. The Fund may experience costs and delays in
liquidating the collateral if the issuer defaults or enters bankruptcy.
18
<PAGE>
Notes to Financial Statements/June 30, 1997
- --------------------------------------------------------------------------------
NOTE 3. FEES AND COMPENSATION PAID TO AFFILIATES
...............................................................................
Management fee: Newport Fund Management (the Adviser) is the investment Adviser
of the Fund and receives a monthly fee based on the Fund's average net assets as
follows:
Average Net Assets Annual Fee Rate
- ------------------------ ------------------
First $100 million 1.00%
Over $100 million 0.75%
Administration fee: Colonial Management Associates, Inc. (the Administrator)
provides accounting and other services for a monthly fee equal to 0.25% annually
of the Fund's average net assets.
Bookkeeping fee: The Administrator provides bookkeeping and pricing services for
$27,000 per year plus 0.035% of the Fund's average net assets over $50 million.
Average Net Assets Annual Fee Rate
- ------------------------ ------------------
First $50 million No charge
Next $950 million 0.035%
Next $1 billion 0.025%
Next $1 billion 0.015%
Transfer agent: Colonial Investors Service Center, Inc. (the Transfer Agent), an
affiliate of the Administrator, provides shareholder services for a monthly fee
equal to 0.25% annually of the Fund's average net assets and receives
reimbursement for certain out of pocket expenses.
Underwriting discounts, service and distribution fees: Colonial Investment
Services, Inc. (the Distributor), an affiliate of the Administrator, is the
Fund's principal underwriter. For the six months ended June 30, 1997, the Fund
has been advised that the Distributor retained net underwriting discounts of
$393,116 on sales of the Fund's Class A, Class D and Class T shares and received
contingent deferred sales charges (CDSC) of $1,110,711 and $31,007 on Class B
and Class D share redemptions, respectively.
The Fund has adopted a 12b-1 plan which requires it to pay the Distributor a
service fee equal to 0.25% annually on Class A, Class B and Class D net assets
as of the 20th of each month. The plan also requires the payment of a
distribution fee to the Distributor equal to 0.75% of the average net assets
attributable to Class B and Class D shares.
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 Administrator has agreed, until further notice, to waive
fees and bear certain Fund expenses to the extent that total expenses (exclusive
of service fees, distribution fees, brokerage commissions, interest,
19
<PAGE>
Notes to Financial Statements/June 30, 1997
- -------------------------------------------------------------------------------
NOTE 3. FEES AND COMPENSATION PAID TO AFFILIATES - CONT.
...............................................................................
taxes and extraordinary expenses, if any) exceed 1.55% annually of the Fund's
average net assets
For the six months ended June 30, 1997, the Fund's operating expenses did not
exceed the 1.55% expense limit.
Other: The Fund pays no compensation to its officers, all of whom are employees
of the Adviser or Administrator.
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
the Fund's assets.
NOTE 4. PORTFOLIO INFORMATION
...............................................................................
Investment activity: During the six months ended June 30, 1997, purchases and
sales of investments, other than short-term obligations, were $119,188,256 and
$90,051,775, respectively.
Unrealized appreciation (depreciation) at June 30, 1997, based on
cost of investments for both financial statement and federal income
tax purposes was:
Gross unrealized appreciation $ 502,650,965
Gross unrealized depreciation (106,698,738)
--------------
Net unrealized appreciation $ 395,952,227
==============
Other: There are certain additional risks involved when investing in foreign
securities that are not inherent with investments in domestic securities. These
risks may involve foreign currency exchange rate fluctuations, adverse political
and economic developments and the possible prevention of currency exchange or
other foreign governmental laws or restrictions.
The Fund may focus its investments in certain industries, subjecting it to
greater risk than a fund that is more diversified.
NOTE 5. LINE OF CREDIT
...............................................................................
The Fund may borrow up to 10% of its net assets under a line of credit for
temporary or emergency purposes. Any borrowings bear interest at one of the
following options determined at the inception of the loan: (1) federal funds
rate plus 1/2 of 1%, (2) the lending bank's base rate or (3) IBOR offshore loan
rate plus 1/2 of 1%. There were no borrowings under the line of credit during
the six months ended June 30, 1997.
20
<PAGE>
FINANCIAL HIGHLIGHTS
Selected data for a share of each class outstanding throughout each period are
as follows:
<TABLE>
<CAPTION>
(Unaudited)
Six months ended
June 30
--------------------------------------------------------------------------------------
1997
Class A Class B Class D Class T Class Z
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net asset value -
Beginning of period $ 13.750 $ 13.640 $ 13.660 $ 13.750 $ 13.750
-------- -------- ---------- --------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment
income (a) 0.057 0.008 0.007 0.074 0.074
Net realized and
unrealized gain (a) 0.455 0.454 0.455 0.469 0.469
-------- -------- ---------- --------- ---------
Total from Investment
Operations 0.512 0.462 0.462 0.543 0.543
-------- -------- ---------- --------- ---------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net
investment income - - - (0.001) (0.001)
From net
realized gains (0.042) (0.042) (0.042) (0.042) (0.042)
-------- -------- ---------- --------- ---------
Total Distributions
Declared to
Shareholders (0.042) (0.042) (0.042) (0.043) (0.043)
-------- -------- ---------- --------- ---------
Net asset value -
End of period $ 14.220 $ 14.060 $ 14.080 $ 14.250 $ 14.250
======== ======== ========== ========= =========
Total return (b)(c) 3.73% 3.39% 3.38% 3.95% 3.95%
======== ======== ========== ========= =========
RATIOS TO AVERAGE NET ASSETS
Expenses (d)(e) 1.69% 2.44% 2.44% 1.44% 1.44%
Net investment
income (d)(e) 0.86% 0.11% 0.11% 1.11% 1.11%
Portfolio turnover (c) 5% 5% 5% 5% 5%
Average commission
rate (f) $ 0.0096 $ 0.0096 $ 0.0096 $ 0.0096 $ 0.0096
Net assets at end
of period (000) $622,293 $664,554 $ 114,772 $ 168,532 $ 347,786
</TABLE>
(a) Per share data was calculated using average shares outstanding during the
period.
(b) Total return at net asset value assuming all distributions reinvested and
no initial sales charge or contingent deferred sales charge.
(c) Not annualized.
(d) The benefits derived from custody credits and directed brokerage
arrangements had no impact.
(e) Annualized.
(f) For fiscal years beginning on or after September 1, 1995, a fund is
required to disclose its average commission rate per share for trades on
which commissions are charged.
21
<PAGE>
FINANCIAL HIGHLIGHTS - CONT.
Selected data for a share of each class outstanding throughout each period
are as follows:
<TABLE>
<CAPTION>
Year ended December 31
------------------------------------------------------------------------------------
1996
Class A Class B Class D Class T Class Z
----------------- -------------- -------------- --------------- ---------------
<S> <C> <C> <C> <C> <C>
Net asset value -
Beginning of period $ 12.460 $ 12.390 $ 12.410 $ 12.450 $ 12.450
----------------- -------------- -------------- --------------- ---------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment
income (a) 0.083 (0.016) (0.016) 0.116 0.116
Net realized and
unrealized gain (a) 1.278 1.275 1.270 1.281 1.281
----------------- -------------- -------------- --------------- ---------------
Total from Investment
Operations 1.361 1.259 1.254 1.397 1.397
----------------- -------------- -------------- --------------- ---------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net
investment income (0.067) (0.005) - (0.093) (0.093)
From net
realized gains (0.004) (0.004) (0.004) (0.004) (0.004)
----------------- -------------- -------------- --------------- ---------------
Total Distributions
Declared to
Shareholders (0.071) (0.009) (0.004) (0.097) (0.097)
----------------- -------------- -------------- --------------- ---------------
Net asset value -
End of period $ 13.750 $ 13.640 $ 13.660 $ 13.750 $ 13.750
----------------- -------------- -------------- --------------- ---------------
Total return (e) 10.94% 10.16% 10.11% 11.24% 11.24%
----------------- -------------- -------------- --------------- ---------------
RATIOS TO AVERAGE NET ASSETS
Expenses (g) 1.74% 2.49% 2.49% 1.49% 1.49%
Net investment
income (g) 0.62% (0.13)% (0.13)% 0.87% 0.87%
Portfolio turnover 6% 6% 6% 6% 6%
Average commission
rate (h) $ 0.0179 $ 0.0179 $ 0.0179 $ 0.0179 $ 0.0179
Net assets at end
of period (000) $ 568,497 $572,089 $ 108,785 $ 187,659 $ 366,849
</TABLE>
(a) Per share data was calculated using average shares outstanding during the
period.
(b) Class A, Class B and Class D shares were initially offered on April 1,
1995. Per share data reflects activity from that date.
(c) Newport Tiger Fund was reorganized as Colonial Newport Tiger Fund on April
1, 1995. Under the plan of reorganization, existing shareholders of
Newport Tiger Fund received Class T or Class Z shares of Colonial Newport
Tiger Fund. The financial highlights for Classes T and Z are presented as
if the reorganization had occurred on January 1, 1995.
(d) Includes distribution from Taiwan Fund which amounted to $ 0.013 of per
share.
(e) Total return at net asset value assuming all distributions reinvested and
no initial sales charge or contingent deferred sales charge.
22
<PAGE>
FINANCIAL HIGHLIGHTS - CONT.
Selected data for a share of each class outstanding throughout each period
are as follows:
<TABLE>
<CAPTION>
Year ended December 31
----------------------------------------------------------------------------------------
1995
Class A (b) Class B (b) Class D (b) Class T (c) Class Z (c)
------------------ --------------- ---------------- -------------- -------------
<S> <C> <C> <C> <C>
$ 10.860 $ 10.860 $ 10.860 $ 10.800 $ 10.800
- ------------ ------------- ------------ ------------ --------------
0.067 (0.003) (0.003) 0.099 0.099(d)
1.617 1.594 1.615 1.656 1.656
- ------------ ------------- ------------ ------------ --------------
1.684 1.591 1.612 1.755 1.755
- ------------ ------------- ------------ ------------ --------------
(0.060) (0.037) (0.038) (0.081) (0.081)
(0.024) (0.024) (0.024) (0.024) (0.024)
- ------------ ------------- ------------ ------------ --------------
(0.084) (0.061) (0.062) (0.105) (0.105)
- ------------ ------------- ------------ ------------ --------------
$ 12.460 $ 12.390 $ 12.410 $ 12.450 $ 12.450
============ ============= ============ ============ ==============
15.52%(f) 14.65%(f) 14.85%(f) 16.28% 16.28%
============ ============= ============ ============ ==============
1.37%(f) 1.93%(f) 1.93%(f) 1.60% 1.60%
0.28%(f) (0.28)%(f) (0.28)%(f) 0.75% 0.75%
4% 4% 4% 4% 4%
-- -- -- -- --
$ 196,870 $ 112,588 $ 21,420 $ 195,986 $ 345,583
</TABLE>
(f) Not annualized.
(g) The benefits derived from custody credits and directed brokerage
arrangements had no impact in 1996. In 1995, the benefits derived from
custody credits and directed brokerage arrangements had an impact of 0.07%
on Class A, Class B and Class D: 0.11% on Class T and Class Z. Prior
years' ratios are net of benefits received, if any.
(h) For fiscal years beginning on or after September 1, 1995, a fund is
required to disclose its average commission rate per share for trades on
which commissions are charged.
23
<PAGE>
FINANCIAL HIGHLIGHTS - CONT.
Selected data for a share of each class outstanding throughout each period are
as follows:
<TABLE>
<CAPTION>
Year ended December 31
----------------------------------------------------
1994 1993 (b) 1992 (b)
------------- --------------- --------------
<S> <C> <C> <C>
Net asset value -
Beginning of period $ 12.440 $ 7.120 $ 5.860
------------- --------------- --------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment
income (a) 0.060 0.040 0.020
Net realized and
unrealized gain (a) (1.550) 5.330 1.270
------------- --------------- --------------
Total from Investment
Operations (1.490) 5.370 1.290
------------- --------------- --------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net
investment income (0.040) (0.040) (0.020)
From net
realized gains (0.110) (0.010) ---
In excess of net
investment income --- --- (0.010)
------------- --------------- --------------
Total Distributions
Declared to
Shareholders (0.150) (0.050) (0.030)
------------- --------------- --------------
Net asset value -
End of period $ 10.800 $ 12.440 $ 7.120
------------- --------------- --------------
Total return (c) (11.96)% 75.45% 22.02%
------------- --------------- --------------
RATIOS TO AVERAGE NET ASSETS
Expenses 1.29% 1.56% 1.85%
Net investment income 0.57% 0.59% 0.36%
Portfolio turnover 8% 11% 17%
Net assets at end
of period (000) $ 456,241 $ 394,883 $ 98,836
</TABLE>
(a) Per share data was calculated using average shares
outstanding during the period.
(b) All per share amounts have been restated to reflect the
2-for-1 stock split effective November 29, 1993.
(c) Total return at net asset value assuming all distributions
reinvested and no initial sales charge or contingent
deferred sales charge.
24
<PAGE>
HOW TO REACH COLONIAL
BY PHONE OR BY MAIL
BY TELEPHONE
Colonial Customer Connection - 1-800-345-6611
For 24-hour account information, call from your touch-tone phone. (Rotary
callers will be automatically connected to a representative during business
hours.) A recorded message will guide you through the menu:
For fund prices, dividends and capital gains information . . . . . . .press 1
For account information . . . . . . . . . . . . . . . . . . . . . . . press 2
To speak to a Colonial representative . . . . . . . . . . . . . . . . press 3
For yield and total return information . . . . . . . . . . . . . . . .press 4
For duplicate statements or a 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.
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
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SHAREHOLDER SERVICES
TO MAKE INVESTING EASIER
Colonial has one of the most extensive selections of shareholder services
available. Your financial advisor can help you arrange for any of these
services, or you can call Colonial directly at 1-800-345-6611.
Affordable Additional Investments: Add to your account with as little as $50
on most funds; $25 for an IRA account.
Free Exchanges(1): Exchange all or part of your account into the same
share class of another Colonial fund, by phone or mail.
Easy Access to Your Money(1): Make withdrawals from your account by phone, by
mail or, for certain funds, by check.
One-Year Reinstatement Privilege: If you need access to your money, but then
choose to return it to Colonial within one year, you can reinvest in any
Colonial fund of the same share class without any penalty or sales charge.
Fundamatic: Make periodic investments as low as $50 from your checking account
to your Colonial account.
Systematic Withdrawal Plan (SWP): Receive monthly, quarterly or semiannual
payments via check or bank transmission. There is a $5,000 account value
required, but no minimum for the payment amount. The maximum annual withdrawal
is 12% of account balance at time SWP is established. SWPs by check are
processed on the 10th calendar day of each month unless the 10th falls on a
non-business day or the first business day of the week. If this occurs, the
payable date will be the previous business day. Dividends and capital gains must
be reinvested.
Automated Dollar Cost Averaging: Transfer money on a monthly basis from any
Colonial fund with a balance of $5,000 into the same share class of up to four
other Colonial funds. Minimum for each transfer is $100.
Colonial Retirement Plans: Choose from a broad range of retirement plans,
including IRAs.
(1) Redemptions and exchanges are made at the next determined net asset value
after the request is received by Colonial. Proceeds may be more or less than
your original cost. The exchange privilege may be terminated at any time.
Exchanges are not available on all funds. Investors who purchase Class B or
Class C shares (for applicable funds), or $1 million or more of Class A shares,
may be subject to a contingent deferred sales charge.
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IMPORTANT INFORMATION ABOUT THIS REPORT
The Transfer Agent for Colonial Newport Tiger Fund is:
Colonial Investors Service Center, Inc.
P.O. Box 1722
Boston, MA 02105-1722
1-800-345-6611
Colonial Newport Tiger 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 Newport Tiger 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.
Important Notice Regarding Telephone Redemptions: Because of a change in policy,
shareholders of Class T and Z shares wishing to make telephone redemptions of
values in excess of $50,000 must send a letter to Colonial requesting telephone
redemption privileges. Telephone redemptions may only be made by wiring the
proceeds to a predesignated bank account. Please send your request, with a
signature guarantee, to Colonial Investors Service Center, Inc., P.O. Box 1722,
Boston, MA 02105-1722. Please include the name of the recipient bank, a blank
check marked void, and the signatures that match the registration of your
Colonial account. Please refer any questions to a Colonial shareholder services
representative at 1-800-345-6611.
27
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[Colonial logo]
COLONIAL
Mutual Funds
Mutual Funds for
Planned Portfolios
- ----------------------------------------------------------------
TRUSTEES
Robert J. Birnbaum
Retired (formerly Special Counsel, Dechert, Price & Rhoads; President and Chief
Operating Officer, New York Stock Exchange, Inc.)
Tom Bleasdale
Retired (formerly Chairman of the Board and Chief Executive Officer, Shore Bank
& Trust Company)
Lora S. Collins
Attorney (formerly Attorney, Kramer, Levin, Naftalis, Nessen, Kamin & Frankel)
James E. Grinnell
Private Investor (formerly Senior Vice President-Operations, The Rockport
Company)
William D. Ireland, Jr.
Retired (formerly Chairman of the Board, Bank of New England-Worcester)
Richard W. Lowry
Private Investor (formerly Chairman and Chief Executive Officer, U.S. Plywood
Corporation)
William E. Mayer
Partner, Development Capital, L.L.C. (formerly Dean, College of Business and
Management, University of Maryland; Dean, Simon Graduate School of Business,
University of Rochester; Chairman and Chief Executive Officer, CS First Boston
Merchant Bank; and President and Chief Executive Officer, The First Boston
Corporation)
James L. Moody, Jr.
Retired (formerly Chairman of the Board and Chief Executive Officer, Hannaford
Bros. Co.)
John J. Neuhauser
Dean, Boston College School of Management
George L. Shinn
Financial Consultant (formerly Chairman, Chief Executive Officer and Consultant,
The First Boston Corporation)
Robert L. Sullivan
Retired Partner, Peat Marwick Main & Co. (formerly Management Consultant,
Saatchi and Saatchi Consulting Ltd. and Principal and International Practice
Director, Management Consulting, Peat Marwick Main & Co.)
Sinclair Weeks, Jr.
Chairman of the Board, Reed & Barton Corporation
Colonial Investment Services, Inc., Distributor [Copyright] 1997
A Liberty Financial Company (NYSE: L)
One Financial Center, Boston, Massachusetts 02111-2621, 617-426-3750
NT-03/872D-0697 M (8/97)
