<PAGE> 1
[Graphic of Tiger}
- ------------------ -----------------
NEWPORT TIGER FUND SEMIANNUAL REPORT
- ------------------ -----------------
June 30, 1999
The Tiger markets of Asia play an
important role in the world's economy,
offering growth opportunities for
long-term global investors.
<PAGE> 2
TABLE OF CONTENTS
1 HIGHLIGHTS
2 PORTFOLIO MANAGERS' REPORT
4 PERFORMANCE
5 PORTFOLIO OF INVESTMENTS
7 FINANCIAL STATEMENTS
11 NOTES TO FINANCIAL STATEMENTS
14 FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
PRESIDENT'S MESSAGE
- --------------------------------------------------------------------------------
Dear Shareholder:
We are pleased to present the semiannual report for Newport Tiger
Fund. This report covers the six months ended June 30, 1999.
[PHOTO OF
PRESIDENT] Two years ago, some of the world's most promising emerging Asian
financial markets were rocked by currency troubles and economic
upheaval. Now, there are signs of recovery in many regions which
have renewed a sense of optimism among investors.
Many Asian companies are working hard to restructure their businesses and
improve their balance sheets. These efforts have resulted in what the Fund
managers consider a more promising outlook for profits, which, coupled with
falling interest rates, have led to a rebound in Asian equity markets.
For the six months ended June 30, 1999, the Fund benefited from this market
phenomenon by making new investments in the region's stronger economies, such
as Korea and Taiwan, a strategy that is consistent with the Fund's
conservative investment approach. Our managers also believe that China offers
superior long-term growth opportunity, and they maintain a substantial
investment in the area through the Hong Kong market. Their intimate knowledge
of Asia's markets and more than 20 years of experience through various market
cycles have served the Fund well.
On the pages that follow, your Fund's portfolio managers discuss the
investment strategies that helped generate favorable results while reducing
the Fund's exposure to the region's riskiest markets.
As always, we thank you for choosing Newport Tiger Fund and we look forward
to continuing to serve your investment needs.
Sincerely,
/s/ Stephen E. Gibson
Stephen E. Gibson
President
August 11, 1999
- ------------------------------
Not FDIC May Lose Value
Insured ------------------
No Bank Guarantee
- ------------------------------
<PAGE> 3
- --------------------------------------------------------------------------------
HIGHLIGHTS
- --------------------------------------------------------------------------------
* MORE COMPANIES FOCUS ON SHAREHOLDER VALUE.
Asian companies are now more committed than ever to providing shareholder
value. This responsibility was largely absent in the high-flying markets of
the early nineties, and can be considered a silver lining to the hardships
of the past two years.
* CONSUMER RECOVERY STILL IN EARLY STAGES.
Although most Asian economies have improved significantly, consumer
spending remains at a relatively low level, suggesting that the recovery
may have additional potential to continue.
* AN IMPRESSIVE TURNAROUND IN ASIAN MARKETS.
The first six months of 1999 were very good for investors in Southeast
Asia. Throughout the region, many Asian economies showed meaningful signs
of recovery from the steep recession that began in 1997. The performance of
two important markets in the region Hong Kong and Singapore illustrate the
financial improvement during the six-month period.
HONG KONG HANG SENG INDEX AND SINGAPORE STRAITS TIMES INDEX:
WEEKLY CLOSING PRICES: 1/4/99 - 6/30/99
Singapore Straits
Hang Seng Index Times Index
--------------- -----------------
1/04/99 9,809 1,400
1/08/99 10,723 1,545
1/15/99 10,147 1,500
1/22/99 9,739 1,479
1/29/99 9,507 1,428
2/05/99 9,190 1,360
2/12/99 9,425 1,355
2/19/99 9,254 1,374
2/26/99 9,858 1,412
3/05/99 10,241 1,450
3/12/99 10,802 1,486
3/19/99 11,083 1,473
3/26/99 10,803 1,498
4/01/99 11,073 1,545
4/09/99 11,914 1,665
4/16/99 12,490 1,770
4/23/99 12,905 1,865
4/30/99 13,333 1,886
5/07/99 12,997 1,899
5/14/99 12,856 1,883
5/21/99 12,272 1,953
5/28/99 12,059 1,904
6/04/99 12,416 1,928
6/11/99 12,993 2,067
6/17/99 13,408 2,071
6/25/99 13,785 2,179
6/30/99 13,532 2,168
The Hang Seng Index is a capitalization-weighted index of 33 companies that
represent approximately 70% of the total market capitalization of the Stock
Exchange of Hong Kong. The Singapore Straits Times Index is an unmanaged index
that tracks the performance of stocks traded on the Singapore Stock Exchange.
Unlike mutual funds, indexes are not investments and do not incur fees or
expenses. It is not possible to invest directly in an index.
Six-month total returns for the period ended 6/30/99(1)
<TABLE>
<CAPTION>
without with
sales charge sales charge
------------ ------------
<S> <C> <C>
Class A 31.62% 24.05%
--------------------------------------------
Class B 31.04% 26.04%
--------------------------------------------
Class C 31.13% 30.13%
--------------------------------------------
Class T 31.66% 24.09%
--------------------------------------------
Class Z 32.00% N/A
--------------------------------------------
</TABLE>
Net asset value per share as of 6/30/99
<TABLE>
<S> <C>
Class A $10.24
--------------------------------------------
Class B $10.09
--------------------------------------------
Class C $10.11
--------------------------------------------
Class T $10.23
--------------------------------------------
Class Z $10.23
--------------------------------------------
</TABLE>
Past performance cannot predict future investment results. Returns and value of
an investment will vary, resulting in a gain or loss on sale. All results shown
assume reinvestment of distributions.
(1) The "with sales charge" returns include the maximum sales charge of 5.75%
for Class A shares and the maximum applicable contingent deferred sales charges
for six months of 5% for Class B shares and 1% for Class C shares. The Fund was
originally introduced on 5/31/1989. On 4/1/1995, the shares that had been
available since 5/31/1989 were re-designed as either Class T or Class Z. Also,
share classes A, B and C were initially offered on that date.
1
<PAGE> 4
SEMIANNUAL REPORT: Newport Tiger Fund
- --------------------------------------------------------------------------------
PORTFOLIO MANAGERS' REPORT
- --------------------------------------------------------------------------------
LOWER RATES TRIGGER SUBSTANTIAL GAINS
Asia's economic prospects improved as the result of a variety of factors,
including a multi-billion dollar infusion from the International Monetary Fund
over a two-year period. The purpose of this infusion was to stabilize tenuous
economies and bring interest rates down. Governments responded by easing
monetary policies, and interest rates fell from record highs to post-war lows.
In addition, devalued currencies in many Asian nations led to an increase in
exports, and many companies became committed to restructuring their businesses
to become more efficient and to increase shareholder value. All of these
factors, combined with improved financial conditions in many Asian governments,
helped push the region's stock markets sharply higher. During the first six
months of 1999, the Fund returned 31.62% for Class A shares, without a sales
charge.
PORTFOLIO DIVERSIFIED THROUGHOUT THE TIGER COUNTRIES
During the first half of the year, the Fund made new commitments to countries
such as Korea and Taiwan. In keeping with the Fund's conservative philosophy,
our strategy has been to keep our initial exposures low until we have more
confidence that the economic recoveries of these nations will prove sustainable.
However, our underweighting of the region's lesser economies also held back the
Fund's overall performance during early 1999. That's because the more
speculative economies, which suffered disproportionately during the 1997
downturn, also exhibited the biggest rebound during the recent recovery.
NEW REASONS TO OWN HIGH-QUALITY STOCKS
One reason we have continued to overweight the stronger economies of the region
is that many of our top holdings do substantial business with less developed
countries, enabling us to participate in these economies with a lower level of
risk. (Of course, certain risks are always present when making equity
investments in emerging economies.)
For example, one of our longstanding holdings, Development Bank of Singapore
(7.2% of net assets), has used the economic downturn to greatly strengthen its
long-term outlook. Among the best-capitalized banks in the world, Development
Bank has been on the acquisition trail, leveraging its strong balance sheet to
improve the return on shareholders' funds. Led by former J.P. Morgan vice
chairman John Olds, Development Bank recently acquired POS Bank Singapore's
second biggest bank as well as assets in Thailand, Hong Kong and Indonesia.
CHANGE IN COUNTRY BREAKDOWNS FROM 6/30/98 TO 6/30/99(1)
<TABLE>
<CAPTION>
6/30/99 6/30/98
------- -------
<S> <C> <C>
Hong Kong 62.3% 66.8%
Singapore 27.6% 20.1%
Korea 2.3% 0.0%
Taiwan 2.1% 0.3%
Philippines 1.6% 4.3%
India 1.2% 0.0%
</TABLE>
(1) Country weightings are calculated as a percentage of total net assets.
Because the Fund is actively managed, there can be no guarantee the Fund will
continue to maintain these country weightings in the future.
2
<PAGE> 5
Another long-term Fund holding, Hutchison Whampoa (6.0% of net assets), is con-
solidating its position as a leader in telecommunications and port operations.
For years it has been acquiring port operations along the China coast; coupled
with positions ranging from Panama to the U.K., it is now the world's only truly
global port company.
CHINA REMAINS AN IMPORTANT HOLDING
We continue to believe that China represents a long-term growth opportunity. The
country is moving from a socialist system towards a market-oriented economy,
which means that the state is no longer taking care of the individual in such
areas as education and medical care. As part of this change, the country's
savings rate has been unusually high, resulting in reduced consumer demand. We
believe that as households bolster their balance sheets, the stage will be set
for growth at the consumer level. Our portfolio now maintains an overweighted
position in China, primarily through our ownership of Hong Kong companies with
significant business interests in China.
/s/ Tim Tuttle /s/ Chris Legallet /s/ Robert Cameron
Tim Tuttle, Chris Legallet and Robert Cameron are portfolio co-managers of
Newport Tiger Fund. Mr. Tuttle is President of Newport Fund Management, Inc.,
Mr. Legallet is Chief Investment Officer of Newport Fund Management, and Mr.
Cameron is a senior vice president of Newport Fund Management.
TOP 5 SECTORS AS OF 6/30/99(1)
<TABLE>
<S> <C>
Financial 34.0%
---------------------------------
Real Estate 23.8%
---------------------------------
Utilities 22.5%
---------------------------------
Telecommunications 9.9%
---------------------------------
Manufacturing 8.1%
---------------------------------
</TABLE>
(1) Industry sector weightings are calculated as a percentage of net assets.
Because the Fund is actively managed, there can be no guarantee the Fund will
continue to maintain these sector weightings in the future.
TOP 5 HOLDINGS AS OF 6/30/99(1)
<TABLE>
<S> <C>
Development Bank of
Singapore 7.2%
---------------------------------
Singapore Press
Holdings 7.1%
---------------------------------
Hong Kong and China
Gas Co., Ltd 6.8%
---------------------------------
Sun Hung Kai
Properties 6.2%
---------------------------------
Cheung Kong
Holdings 6.1%
---------------------------------
</TABLE>
(1) Top five holdings are calculated as a percentage of net assets. Because the
Fund is actively managed, there can be no guarantee the Fund will continue to
maintain these holdings in the future.
3
<PAGE> 6
SEMIANNUAL REPORT: Newport Tiger Fund
- --------------------------------------------------------------------------------
PERFORMANCE INFORMATION
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS AS OF 6/30/99
<TABLE>
<CAPTION>
1 YEAR 5 YEARS 10 YEARS
SHARE CLASS Inception without with without with without with
Date sales charge sales charge sales charge sales charge sales charge sales charge
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Class A 4/1/95 67.26% 57.64% 0.12% (1.06)% 8.27% 7.63%
- ------------------------------------------------------------------------------------------------------------------
Class B 4/1/95 65.79 60.79 (0.55) (0.96) 7.90 7.90
- ------------------------------------------------------------------------------------------------------------------
Class C 4/1/95 65.78 64.78 (0.52) (0.52) 7.92 7.92
- ------------------------------------------------------------------------------------------------------------------
Class T 5/31/89 67.25 57.64 0.29 (0.89) 8.36 7.72
- ------------------------------------------------------------------------------------------------------------------
Class Z 5/31/89 67.53 N/A 0.29 N/A 8.36 N/A
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
Past performance cannot predict future investment results. Returns and value of
an investment will vary, resulting in a gain or loss on sale. All results shown
assume reinvestment of distributions. The "with sales charge" returns include
the maximum sales charge of 5.75% for Classes A and T shares and the maximum
applicable contingent deferred sales charge of 5% for one year and 2% for five
years 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.
The Fund was originally introduced on 05/31/89 and became Colonial Newport Tiger
Fund on 04/01/95 when Class A, B and D (since redesignated as C) shares were
offered. As of 04/30/98, the Fund was renamed Newport Tiger Fund. Please see the
Fund's prospectus for additional details. Class A, B and C share performance
information includes returns of the Fund's Class T shares for periods prior to
the inception dates of those classes. These Class T share returns are not
restated to reflect any expense differential (e.g., Rule 12b-1 fees) between
Class T shares and the Class A, B and C shares. Had the expense differential
been reflected, the returns for periods to the inception date of the Class A, B
and C shares would have been lower.
4
<PAGE> 7
- --------------------------------------------------------------------------------
INVESTMENT PORTFOLIO
- --------------------------------------------------------------------------------
June 30, 1999 (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
COMMON STOCKS 97.0% COUNTRY SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
FINANCE, INSURANCE &
REAL ESTATE 57.8%
DEPOSITORY INSTITUTIONS 21.5%
Bank of Philippine Islands Ph 1,075 $ 3,842
Development Bank
of Singapore Ltd. Si 5,553 67,927
HSBC Holdings PLC (a) HK 1,204 42,667
Hang Seng Bank HK 3,430 38,351
Oversea-Chinese Banking Corp., Ltd. Si 5,695 47,560
United Overseas Bank Si 311 2,176
--------
202,523
--------
HOLDING COMPANIES 11.9%
Citic Pacific Ltd. HK 8,751 27,915
Hutchison Whampoa Ltd. HK 6,274 56,807
Singapore Technologies Engineering Ltd. Si 23,825 27,040
--------
111,762
--------
INSURANCE CARRIERS 0.5%
National Mutual Asia Ltd. HK 6,000 4,795
--------
NONDEPOSITORY CREDIT
INSTITUTIONS 0.1%
Housing Development Finance Ltd. Id 10 522
--------
REAL ESTATE 23.8%
Ayala Land Inc. Ph 7,500 2,365
Cheung Kong Holdings Ltd. HK 6,448 57,344
China Resources Enterprises Ltd. HK 14,000 24,721
City Developments Ltd. Si 6,537 41,901
HKR International Ltd. HK 6,000 5,181
SM Prime Holdings Inc. Ph 37,534 8,484
Sun Hung Kai Properties Ltd. HK 6,430 58,634
Swire Pacific Ltd., Series A HK 5,170 25,588
--------
224,218
--------
- --------------------------------------------------------------------------------
MANUFACTURING 8.1%
FOOD & KINDRED PRODUCTS 0.2%
Hindustan Lever Ltd. (b) Id 35 1,928
--------
HOUSEHOLD APPLIANCES 0.3%
Guangdong Kelon Electric
Holdings, Class H HK 2,000 2,333
--------
MEASURING & ANALYZING
INSTRUMENTS 0.5%
China Hong Kong Photo
Products Holdings, Ltd. HK 31,400 5,018
--------
PRINTING & PUBLISHING 7.1%
Singapore Press Holdings Ltd. Si 3,939 $ 67,182
--------
- --------------------------------------------------------------------------------
RETAIL TRADE 2.4%
APPAREL & ACCESSORY STORES 1.5%
Giordano International Ltd. HK 20,000 14,178
--------
FOOD STORES 0.9%
President Chain Store Corp. Tw 2,368 8,028
--------
- --------------------------------------------------------------------------------
SERVICES 2.8%
COMPUTER RELATED SERVICES 0.7%
Datacraft Asia Ltd. Si 1,483 6,466
--------
COMPUTER SOFTWARE 2.1%
Infosys Technologies Ltd. Id 103 8,627
--------
Taiwan Semiconductor
Manufacturing Co., ADR Tw 3,016 11,532
--------
20,159
--------
- --------------------------------------------------------------------------------
TRANSPORTATION, COMMUNICATION, ELECTRIC,
GAS & SANITARY SERVICES 22.5%
ELECTRIC SERVICES 5.8%
CLP Holdings Ltd. HK 5,865 28,499
Hong Kong Electric
Holdings Ltd. HK 5,941 19,143
Korea Electric Power
Corp., ADR Ko 331 6,775
--------
54,417
--------
GAS SERVICES 6.8%
Hong Kong and China Gas Co., Ltd. HK 44,000 63,799
--------
RAILROAD 0.0%
Guangshen Railway Co., Ltd. HK 2,948 452
--------
TELECOMMUNICATION 9.9%
China Telecom Ltd. (a)(b) HK 18,300 52,155
Hong Kong Telecommunications Ltd. (a) HK 10,011 26,903
Korea Telecom Corp., ADR (b) Ko 363 14,535
--------
93,593
--------
- --------------------------------------------------------------------------------
WHOLESALE TRADE 3.4%
DURABLE GOODS
Johnson Electric Holdings Ltd. HK 3,444 14,206
Li & Fung Ltd. HK 7,560 18,124
--------
32,330
--------
TOTAL COMMON STOCKS
(cost of $781,875)(c) 913,703
--------
</TABLE>
5
<PAGE> 8
- --------------------------------------------------------------------------------
INVESTMENT PORTFOLIO (CONTINUED)
- --------------------------------------------------------------------------------
June 30, 1999 (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
SHORT-TERM OBLIGATIONS 3.5% Par Value
- --------------------------------------------------------------------------------
<S> <C> <C>
Repurchase agreement with SBC
Warburg Ltd., dated 06/30/99 due
07/01/99 at 4.800% collateralized
by U.S. Treasury bonds and/or
notes with maturities to 2027,
market value $33,720 (repurchase
proceeds $32,573) $32,569 $ 32,569
--------
OTHER ASSETS & LIABILITIES, NET (0.5%) (4,360)
========
NET ASSETS 100% $941,912
========
</TABLE>
NOTES TO INVESTMENT PORTFOLIO:
(a) The value of this security represents fair value as determined in good
faith under the direction of the Trustees.
(b) Non-income producing.
(c) Cost for federal income tax purposes is $782,034.
<TABLE>
<CAPTION>
SUMMARY OF SECURITIES BY
COUNTRY COUNTRY VALUE TOTAL
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
Hong Kong HK $586,813 64.2
Singapore Si 260,252 28.5
Korea Ko 21,310 2.3
Taiwan Tw 19,560 2.2
Philippines Ph 14,691 1.6
India Id 11,077 1.2
-------- -----
$913,703 100.0
======== =====
</TABLE>
Certain securities are listed by country of underlying exposure but may trade
predominantly on other exchanges.
Acronym Name
------- ---------------------------
ADR American Depositary Receipt
6 See notes to financial statements.
<PAGE> 9
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
June 30, 1999 (Unaudited)
(In thousands except for per share amounts and footnotes)
<TABLE>
<S> <C> <C>
ASSETS
Investments at value (cost $781,875) $913,703
Short-term obligations 32,569
--------
946,272
Cash including foreign currencies
(cost $53) $ 54
Receivable for:
Fund shares sold 4,016
Investments sold 1,668
Dividends 1,133
Interest 4
Other 10 6,885
------ --------
Total Assets 953,157
LIABILITIES
Payable due to custodian bank 1,578
Payable for:
Fund shares repurchased 6,544
Investments purchased 1,667
Accrued:
Management fee 575
Administration fee 185
Service fee Class A, Class B, Class C 100
Distribution fee Class B 200
Distribution fee Class C 69
Transfer agent fee 103
Bookkeeping fee 27
Deferred Trustees fees 11
Other 186
- ----- ------
Total Liabilities 11,245
--------
NET ASSETS $941,912
========
</TABLE>
<TABLE>
<S> <C>
Class A
Net asset value & redemption price per share
($310,436/30,324) $ 10.24(a)
==========
Maximum offering price per share
($10.24/0.9425) $ 10.86(b)
==========
Class B
Net asset value & offering price per share
($335,713/33,267) $ 10.09(a)
==========
Class C
Net asset value & offering price per share
($60,659/6,003) $ 10.11(a)
==========
Class T
Net asset value & redemption price per share
($59,112/5,776) $ 10.23
==========
Maximum offering price per share
($10.23/0.9425) $ 10.85(b)
==========
Class Z
Net asset value, offering & redemption price
per share ($175,992/17,208) $ 10.23
==========
COMPOSITION OF NET ASSETS
Capital paid in $1,158,625
Accumulated net investment loss (3,587)
Accumulated net realized loss (344,956)
Net unrealized appreciation on:
Investments 131,828
Foreign currency transactions 2
==========
$ 941,912
==========
</TABLE>
(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.
7
See notes to financial statements.
<PAGE> 10
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------------------
For the Six Months Ended June 30, 1999 (Unaudited)
(In thousands)
<TABLE>
<S> <C> <C>
INVESTMENT INCOME
Dividends:
Cheung Kong Holdings Ltd. $ 823
CLP Holdings Ltd. 969
HSBC Holdings PLC 722
Hang Seng Bank 894
Hong Kong Electric Holdings Ltd. 919
Hong Kong Telecommunications Ltd. 602
Hong Kong and China Gas Co., Ltd. 1,187
Hutchison Whampoa Ltd. 782
Singapore Press Holdings Ltd. 758
Singapore Technologies Engineering Ltd. 676
Other 3,163
Interest 483
--------
Total Investment Income (net of
nonreclaimable foreign taxes
withheld at source which
amounted to $786) 11,978
EXPENSES
Management fee $ 3,126
Administration fee 1,000
Service fee Class A, Class B, Class C 748
Distribution fee Class B 1,079
Distribution fee Class C 189
Transfer agent fee 1,375
Bookkeeping fee 145
Trustees fee 17
Custodian fee 173
Audit fee 13
Legal fee 10
Registration fee 55
Reports to shareholders 11
Other 141 8,082
-------- --------
Net Investment Income 3,896
--------
NET REALIZED & UNREALIZED GAIN (LOSS)
ON PORTFOLIO POSITIONS
Net realized loss on:
Investments (33,706)
Foreign currency transactions (126)
--------
Net Realized Loss (33,832)
Net change in unrealized appreciation/depreciation
during the period on:
Investments 257,952
Foreign currency transactions 2
--------
Net Unrealized Appreciation 257,954
--------
Net Gain 224,122
--------
Increase in Net Assets from Operations $228,018
========
</TABLE>
8 See notes to financial statements.
<PAGE> 11
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
(In thousands)
<TABLE>
<CAPTION>
(UNAUDITED)
SIX MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31,
1999 1998
- -----------------------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income $ 3,896 $ 13,928
Net realized loss (33,832) (203,334)
Net unrealized appreciation 257,954 55,638
--------- ----------
Net Increase (Decrease) from Operations 228,018 (133,768)
--------- ----------
Distributions:
From net investment income -- Class A -- (4,839)
From net investment income -- Class B -- (3,032)
From net investment income -- Class C -- (503)
From net investment income -- Class T -- (1,162)
From net investment income -- Class Z -- (3,078)
--------- ----------
228,018 (146,382)
--------- ----------
Fund Share Transactions:
Receipts for shares sold -- Class A 162,584 390,952
Value of distributions reinvested -- Class A (a) 3,964
Cost of shares repurchased -- Class A (176,970) (423,839)
--------- ----------
(14,386) (28,923)
--------- ----------
Receipts for shares sold -- Class B 23,074 118,738
Value of distributions reinvested -- Class B (a) 2,739
Cost of shares repurchased -- Class B (47,830) (150,324)
--------- ----------
(24,756) (28,847)
--------- ----------
Receipts for shares sold -- Class C 9,041 36,392
Value of distributions reinvested -- Class C -- 463
Cost of shares repurchased -- Class C (10,824) 41,371)
--------- ----------
(1,783) (4,516)
--------- ----------
INCREASE (DECREASE) IN NET ASSETS
Receipts for shares sold -- Class T 655 3,578
Value of distributions reinvested -- Class T -- 994
Cost of shares repurchased -- Class T (7,519) (22,132)
--------- ----------
(6,864) (17,560)
--------- ----------
Receipts for shares sold -- Class Z 180,528 149,223
Value of distributions reinvested -- Class Z -- 2,303
Cost of shares repurchased -- Class Z (187,927) (167,695)
--------- ----------
(7,399) (16,169)
--------- ----------
Net Decrease from Fund
Share Transactions (55,188) (96,015)
--------- ----------
Total Increase (Decrease) 172,830 (242,397)
NET ASSETS
Beginning of period 769,082 1,011,479
--------- ----------
End of period (net of accumulated loss and overdistributed
net investment income of $3,587 and $7,483, respectively) $ 941,912 $ 769,082
========= ==========
</TABLE>
(a) Rounds to less than one.
9
See notes to financial statements.
<PAGE> 12
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS -- CONT.
- --------------------------------------------------------------------------------
(In thousands)
<TABLE>
<CAPTION>
(UNAUDITED)
SIX MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31,
1999 1998
- -----------------------------------------------------------------------------------------------------
<S> <C> <C>
NUMBER OF FUND SHARES
Sold -- Class A 18,700 53,978
Issued for distributions reinvested -- Class A (a) 511
Repurchased -- Class A (20,522) (58,196)
------- -------
(1,822) (3,707)
------- -------
Sold -- Class B 2,753 16,083
Issued for distributions reinvested -- Class B (a) 348
Repurchased -- Class B (5,891) (20,659)
------- -------
(3,138) (4,228)
------- -------
Sold -- Class C 1,080 4,975
Issued for distributions reinvested -- Class C -- 59
Repurchased -- Class C (1,346) (5,782)
------- -------
(266) (748)
------- -------
Sold -- Class T 78 492
Issued for distributions reinvested -- Class T -- 128
Repurchased -- Class T (937) (3,092)
------- -------
(859) (2,472)
------- -------
Sold -- Class Z 23,736 20,851
Issued for distributions reinvested -- Class Z -- 297
Repurchased -- Class Z (24,461) (23,285)
------- -------
(725) (2,137)
------- -------
</TABLE>
(a) Rounds to less than one.
10 See notes to financial statements.
<PAGE> 13
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
June 30, 1999 (Unaudited)
NOTE 1. INTERIM FINANCIAL STATEMENTS
In the opinion of management of Newport Tiger Fund (the Fund), a series of
Liberty Funds Trust VII, formerly 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, 1999, 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's investment objective is to seek
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 C, Class T and Class Z. Class A shares are sold with a front-end
sales charge. A 1.00% contingent deferred sales charge is assessed 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. 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, as described in the Fund's 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 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 generally 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 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. In addition, if the values of foreign securities have
been materially affected by events occurring after the closing of the market,
the foreign securities may be valued at their current value.
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 for which market quotations are not
readily available. 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 C service fees
and Class B and Class C distribution fees), 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 C net investment income per
share data reflects the service fee per share applicable to Class A, Class B and
Class C shares and the distribution fee applicable to Class B and Class C shares
only.
Class A, Class B and Class C 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 C shares and 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 income, no federal income tax has been
accrued.
11
<PAGE> 14
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS CONTINUED
- --------------------------------------------------------------------------------
June 30, 1999 (Unaudited)
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.
FOREIGN CURRENCY TRANSACTIONS:
Net realized and unrealized gains (losses) on foreign currency transactions
includes the gains (losses) arising from the fluctuation in exchange rates
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 nonreclaimable 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.
NOTE 3. FEES AND COMPENSATION PAID TO AFFILIATES
MANAGEMENT FEE:
Newport Fund Management (the Advisor) is the investment Advisor of the Fund and
receives a monthly fee based on the Fund's average net assets as follows:
<TABLE>
<CAPTION>
AVERAGE NET ASSETS ANNUAL FEE RATE
- --------------------------------------------------------------------
<S> <C>
First $100 million 1.00%
Next $1.4 billion 0.75%
Next $1.0 billion 0.70%
Over $2.5 billion 0.65%
</TABLE>
ADMINISTRATION FEE:
Colonial Management Associates, Inc. (the Administrator) an affiliate of the
Advisor, 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 a monthly fee
equal to $27,000 annually plus a percentage of the Fund's average net assets as
follows:
<TABLE>
<CAPTION>
AVERAGE NET ASSETS ANNUAL FEE RATE
- --------------------------------------------------------------------
<S> <C>
First $50 million No charge
Next $950 million 0.035%
Next $1 billion 0.025%
Next $1 billion 0.015%
Over $3 billion 0.010%
</TABLE>
TRANSFER AGENT:
Liberty Funds Services, Inc. (the Transfer Agent), an affiliate of the
Administrator, provides shareholder services for a monthly fee equal to 0.236%
annually of the Fund's average net assets and receives reimbursement for certain
out-of-pocket expenses.
12
<PAGE> 15
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS CONTINUED
- --------------------------------------------------------------------------------
June 30, 1999 (Unaudited)
UNDERWRITING DISCOUNTS, SERVICE AND DISTRIBUTION FEES:
Liberty Funds Distributor, Inc. (the Distributor), a subsidiary of the
Administrator, is the Fund's principal underwriter. For the six months ended
June 30, 1999 the Fund has been advised that the Distributor retained net
underwriting discounts of $306,290 on sales of the Fund's Class A, Class C and
Class T shares and received contingent deferred sales charges (CDSC) of $16,051,
$1,013,736 and $16,313 on Class A, Class B and Class C 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 C 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 C 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, taxes and
extraordinary expenses, if any) exceed 1.55% annually of the Fund's average net
assets.
For the six months ended June 30, 1999, the Fund's operating expenses, as
defined above, did not exceed the 1.55% expense limit.
OTHER:
The Fund pays no compensation to its officers, all of whom are employees of the
Advisor 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
Fund's assets.
NOTE 4. PORTFOLIO INFORMATION
INVESTMENT ACTIVITY:
During the six months ended June 30, 1999, purchases and sales of investments,
other than short-term obligations, were $84,222,599 and $146,164,955,
respectively.
Unrealized appreciation (depreciation) at June 30, 1999, based on cost of
investments for federal income tax purposes was:
<TABLE>
<S> <C>
Gross unrealized appreciation $207,756,466
Gross unrealized depreciation (76,087,139)
------------
Net unrealized appreciation $131,669,327
============
</TABLE>
CAPITAL LOSS CARRYFORWARDS:
At December 31, 1998, capital loss carryforwards available (to the extent
provided in regulations) to offset future realized gains were approximately as
follows:
<TABLE>
<CAPTION>
YEAR OF CAPITAL LOSS
EXPIRATION CARRYFORWARD
---------- ------------
<S> <C>
2005 $ 81,206,000
2006 229,760,000
------------
$310,966,000
============
</TABLE>
Expired capital loss carryforwards, if any, are recorded as a reduction of
capital paid in.
To the extent loss carryforwards are used to offset any future realized gains,
it is unlikely that such gains would be distributed since they may be taxable to
shareholders as ordinary income.
OTHER:
There are certain 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 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 six months ended June 30, 1999.
13
<PAGE> 16
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Selected data for a share of each class outstanding throughout each period are
as follows:
<TABLE>
<CAPTION>
1999
------------------------------------------------------------------------
SIX MONTHS ENDED JUNE 30 (UNAUDITED) CLASS A CLASS B CLASS C CLASS T CLASS Z
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 7.800 $ 7.700 $ 7.710 $ 7.770 $ 7.750
--------- -------- ------- ------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (a)(b) 0.051 0.020 0.020 0.062 0.062
Net realized and unrealized gain 2.389 2.370 2.380 2.398 2.418
--------- -------- ------- ------- --------
Total from Investment Operations 2.440 2.390 2.400 2.460 2.480
--------- -------- ------- ------- --------
NET ASSET VALUE END OF PERIOD $ 10.240 $ 10.090 $10.110 $10.230 $ 10.230
--------- -------- ------- ------- --------
Total return (c)(d) 31.62% 31.04% 31.13% 31.66% 32.00%
--------- -------- ------- ------- --------
RATIOS TO AVERAGE NET ASSETS:
Expenses (e)(f) 1.76% 2.51% 2.51% 1.51% 1.51%
Net investment income (e)(f) 1.22% 0.47% 0.47% 1.47% 1.47%
Portfolio turnover (d) 11% 11% 11% 11% 11%
Net assets at end of period (000) $ 310,436 $335,713 $60,659 $59,112 $175,992
</TABLE>
(a) Per share data was calculated using average shares outstanding during the
period.
(b) Includes distributions from securities listed on the Statement of
Operations which amounted to $0.009, $0.010, $0.008, $0.009, $0.010,
$0.006, $0.012, $0.008, $0.008 and $0.007 per share, respectively.
(c) Total return at net asset value assuming all distributions reinvested and
no initial sales charge or contingent deferred sales charge.
(d) Not annualized.
(e) The benefits derived from custody credits and directed brokerage
arrangements had no impact.
(f) Annualized.
<TABLE>
<CAPTION>
1998
------------------------------------------------------------------------------
YEAR ENDED DECEMBER 31 CLASS A CLASS B CLASS C CLASS T CLASS Z
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 9.020 $ 8.920 $ 8.940 $ 9.010 $ 9.010
--------- --------- --------- --------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (a)(b) 0.145 0.091 0.091 0.163 0.163
Net realized and unrealized loss (1.234) (1.228) (1.241) (1.232) (1.252)
--------- --------- --------- --------- ---------
Total from Investment Operations (1.089) (1.137) (1.150) (1.070) (1.090)
--------- --------- --------- --------- ---------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.151) (0.083) (0.080) (0.171) (0.171)
--------- --------- --------- --------- ---------
NET ASSET VALUE END OF PERIOD $ 7.780 $ 7.700 $ 7.710 $ 7.770 $ 7.750
--------- --------- --------- --------- ---------
Total return (c) (12.08)% (12.77)% (12.89)% (11.87)% (12.09)%
--------- --------- --------- --------- ---------
RATIOS TO AVERAGE NET ASSETS
Expenses (d) 1.78% 2.53% 2.53% 1.53% 1.53%
Net investment income (d) 2.02% 1.27% 1.27% 2.27% 2.27%
Portfolio turnover 15% 15% 15% 15% 15%
Net assets at end of period (000) $ 250,089 $ 280,163 $ 48,316 $ 51,526 $ 138,988
</TABLE>
(a) Per share data was calculated using average shares outstanding during the
period.
(b) Includes distributions from securities listed on the Statement of
Operations which amounted to $0.019, $0.026, $0.027, $0.017, $0.026,
$0.019, $0.018, $0.037 and $0.016 per share, respectively.
(c) Total return at net asset value assuming all distributions reinvested and
no initial sales charge or contingent deferred sales charge.
(d) The benefits derived from custody credits and directed brokerage
arrangements had no impact.
14
<PAGE> 17
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
Selected data for a share of each class outstanding throughout each period are
as follows:
<TABLE>
<CAPTION>
1997
--------------------------------------------------------------------------
YEAR ENDED DECEMBER 31 CLASS A CLASS B CLASS C(A) 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 (loss) (b)(c) 0.081 (0.011) (0.012) 0.112 0.112
Net realized and unrealized loss (4.735) (4.667) (4.666) (4.740) (4.740)
--------- --------- --------- --------- ---------
Total from Investment Operations (4.654) (4.678) (4.678) (4.628) (4.628)
--------- --------- --------- --------- ---------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.034) -- -- (0.070) (0.070)
From net realized gains (0.042) (0.042) (0.042) (0.042) (0.042)
--------- --------- --------- --------- ---------
Total Distributions Declared to Shareholders (0.076) (0.042) (0.042) (0.112) (0.112)
--------- --------- --------- --------- ---------
NET ASSET VALUE END OF PERIOD $ 9.020 $ 8.920 $ 8.940 $ 9.010 $ 9.010
--------- --------- --------- --------- ---------
Total return (d) (33.95)% (34.41)% (34.36)% (33.76)% (33.76)%
--------- --------- --------- --------- ---------
RATIOS TO AVERAGE NET ASSETS
Operating expenses (e) 1.73% 2.48% 2.48% 1.48% 1.48%
Interest expense (f) (f) (f) (f) (f)
Total expenses (e) 1.73% 2.48% 2.48% 1.48% 1.48%
Net investment income (loss) (e) 0.64% (0.11)% (0.11)% 0.89% 0.89%
Portfolio turnover 12% 12% 12% 12% 12%
Net assets at end of period (000) $ 323,407 $ 362,442 $ 62,703 $ 82,095 $ 180,832
</TABLE>
(a) Class D shares were redesignated Class C shares on July 1, 1997.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Includes distribution from Hong Kong Electric Holdings Ltd. which amounted
to $0.015 per share.
(d) Total return at net asset value assuming all distributions reinvested and
no initial sales charge or contingent deferred sales charge.
(e) The benefits derived from custody credits and directed brokerage
arrangements had no impact.
(f) Rounds to less than 0.01%
<TABLE>
<CAPTION>
1996
------------------------------------------------------------------------------
YEAR ENDED DECEMBER 31 CLASS A CLASS B CLASS C 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 (loss)(a) 0.083 (0.016) (0.016) 0.116 0.116
Net realized and unrealized gain 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 (b) 10.94% 10.16% 10.11% 11.24% 11.24%
-------- -------- -------- -------- --------
RATIOS TO AVERAGE NET ASSETS
Expenses (c) 1.74% 2.49% 2.49% 1.49% 1.49%
Net investment income (loss)(c) 0.62% (0.13)% (0.13)% 0.87% 0.87%
Portfolio turnover 6% 6% 6% 6% 6%
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) Total return at net asset value assuming all distributions reinvested and
no initial sales charge or contingent deferred sales charge.
(c) The benefits derived from custody credits and directed brokerage
arrangements had no impact.
15
<PAGE> 18
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
Selected data for a share of each class outstanding throughout each period are
as follows:
<TABLE>
<CAPTION>
1995 1994
------------------------------------------------------------------------------------
YEAR ENDED DECEMBER 31 CLASS A(b) CLASS B(b) CLASS C(b) CLASS T(c) CLASS Z(c)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.860 $ 10.860 $ 10.860 $ 10.800 $ 10.800 $ 12.440
--------- ---------- ---------- -------- -------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)(a) 0.067 (0.003) (0.003) 0.099(d) 0.099(d) 0.060
Net realized and unrealized loss 1.617 1.594 1.615 1.656 1.656 (1.550)
--------- ---------- ---------- -------- -------- ---------
Total from Investment Operations 1.684 1.591 1.612 1.755 1.755 (1.490)
--------- ---------- ---------- -------- -------- ---------
LESS DISTRIBUTIONS FROM SHAREHOLDERS:
From net investment income (0.060) (0.037) (0.038) (0.081) (0.081) (0.040)
From net realized gains (0.024) (0.024) (0.024) (0.024) (0.024) (0.110)
--------- ---------- ---------- -------- -------- ---------
Total Distributions Declared to Shareholders (0.084) (0.061) (0.062) (0.105) (0.105) (0.150)
--------- ---------- ---------- -------- -------- ---------
NET ASSET VALUE END OF PERIOD $ 12.460 $ 12.390 $ 12.410 $ 12.450 $ 12.450 $ 10.800
--------- ---------- ---------- -------- -------- ---------
Total return (e) 15.52%(f) 14.65%(f) 14.85%(f) 16.28% 16.28% (11.96)%
--------- ---------- ---------- -------- -------- ---------
RATIOS TO NET ASSETS
Expenses (g) 1.37%(f) 1.93%(f) 1.93%(f) 1.60% 1.60% 1.29%
Net investment income (loss) (g) 0.28%(f) (0.28)%(f) (0.28)%(f) 0.75% 0.75% 0.57%
Portfolio turnover 4% 4% 4% 4% 4% 8%
Net assets at end of period (000) $ 196,870 $ 112,588 $ 21,420 $195,986 $345,583 $ 456,241
</TABLE>
(a) Per share data was calculated using average shares outstanding during the
period.
(b) Class A, Class B and Class C 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 per share.
(e) Total return at net asset value assuming all distributions reinvested and
no initial sales charge or contingent deferred sales charge.
(f) Not annualized.
(g) The benefits derived from custody credits and directed brokerage
arrangements had an impact of 0.07% on Class A, Class B and Class C and
0.11% on Class T and Class Z in 1995. Prior years' ratios are net of
benefits received, if any.
16
<PAGE> 19
SEMIANNUAL REPORT: Newport Tiger Fund
TRUSTEES & TRANSFER AGENT
- --------------------------------------------------------------------------------
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 V. 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)
- --------------------------------------------------------------------------------
Important Information About This Report
The Transfer Agent for Newport Tiger Fund is:
Liberty Funds Services, Inc.
P.O. Box 1722
Boston, MA 02105-1722
1-800-345-6611
The 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 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 Funds and with the most recent copy
of the Liberty Funds Distributor, Inc. Performance Update.
<PAGE> 20
- --------------------------------------------------------------------------------
CHOOSE LIBERTY
- --------------------------------------------------------------------------------
BECAUSE NO SINGLE INVESTMENT MANAGER CAN BE ALL THINGS TO ALL
INVESTORS.(SM)
- --------------------------------------------------------------------------------
L I B E R T Y
- --------------------------------------------------------------------------------
COLONIAL Colonial has long been a recognized leader in fixed-income
MANAGEMENT investing. In addition, Colonial has distinguished itself
ASSOCIATES, INC. with both a traditional value and a more contemporary
[LOGO] approach to equity investing.
- --------------------------------------------------------------------------------
Crabbe Huson's contrarian investment style seeks long-term
performance by investing in stocks from high-quality,
CRABBE HUSON out-of-favor companies. This risk-averse strategy
capitalizes on the potential of these companies to regain
[LOGO] market popularity.
- --------------------------------------------------------------------------------
LIBERTY LAMCO brings institutional money management to individual
ASSET MANAGEMENT investors through a disciplined multi-manager investment
COMPANY [LOGO] process that seeks to deliver consistent long-term returns.
- --------------------------------------------------------------------------------
NEWPORT A leader in Asian investing(TM), Newport has an
FUND unparalleled knowledge of Asian economies, business and
MANAGEMENT [LOGO] culture.
- --------------------------------------------------------------------------------
STEIN Stein Roe's growth management style emphasizes companies
ROE & with the ability to create, maintain and grow earnings in
FARNHAM [LOGO] different market environments.
- --------------------------------------------------------------------------------
BOSTON * CHICAGO * NEW YORK * PORTLAND * SAN FRANCISCO
- --------------------------------------------------------------------------------
That's why each of these affiliated managers has excelled in a particular
investment style. These managers not only specialize in a distinct investment
style, they hold a passion for their style along with a demonstrated track
record.
Each of these managers is a member of the Liberty Financial Companies (NYSE: L),
a diversified asset accumulation and management organization with approximately
$61 billion in assets under management for more than 1.7 million investors. Many
of the affiliated managers' products are offered by prospectus through Liberty
Funds Distributor, Inc.
Ask your financial advisor to help you develop an investment strategy that
blends the complementary disciplines of different managers into a well-balanced
program tailored to your goals.
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NEWPORT TIGER FUND SEMIANNUAL REPORT, JUNE 30, 1999
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[LOGO] LIBERTY BULK RATE
ALL-STAR * COLONIAL * CRABBE HUSON * NEWPORT * STEIN ROE ADVISOR U.S. POSTAGE
Liberty Funds Distributor, Inc. (C)1999 PAID
One Financial Center, Boston, MA 02111-2621, 1-800-426-3750 Holliston, MA
Visit us at www.libertyfunds.com PERMIT NO. 20
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NT-03/411H-0699 (6/99) 99/951
