<PAGE>
[Logo]
Liberty Newport
Tiger Fund
Semmiannual Report
June 30, 2000
[graphic omitted]
<PAGE>
--------------------------------------------------------------------------------
PRESIDENT'S MESSAGE
--------------------------------------------------------------------------------
[Photo of Stephen E. Gibson]
Dear Shareholder:
You may have noticed that your Fund has a new name. Beginning July 14, 2000,
the names of our funds changed to include Liberty. Rest assured, the
investment objectives and strategies employed by the Funds' managers are not
affected by this name change. We believe the new name better reflects that
your Fund is part of the Liberty family of funds, which represents a wide
selection of investment styles and specialized money management. The goal of
all Liberty funds is to help you reach for financial freedom -- however you
define it.
The six-month period ended June 30, 2000 was a time of consolidation for the
major stock markets of the Pacific Basin. Whereas many of these markets had
performed superbly in 1999, by the first quarter of this year valuations had
gotten somewhat ahead of fundamentals. The result was a correction in the second
quarter that paralleled the stock market trends here in the United States.
Despite this pullback, we are encouraged by the underlying economic trends
throughout the region. The recovery that began in 1999 is continuing, and
analysts' growth forecasts have notched upward. We caution that the extent and
sustainability of economic recovery varies from country to country, but clearly
the situation is much improved from the unsettled picture of two years ago.
The emergence of private industry within Greater China continues to be one of
the most significant economic forces of our time -- in Asia or anywhere. We
therefore note with great interest that in India (a country that we consider to
be a Tiger economy), the new government has followed China's lead, and has made
open markets and privatization a top priority. As barriers to investment come
down, your Fund's managers are presented with an ever-increasing array of
investment choices.
Liberty Newport Tiger Fund posted respectable performance for the period, as
in-depth analysis and quality stock selection enabled the Fund to outperform its
benchmark. The following report will provide you with more specific information
about your Fund's performance and the strategies used during the period. We
thank you for choosing Liberty Newport Tiger Fund and for giving us the
opportunity to serve your investment needs.
Sincerely,
/s/ Stephen E. Gibson
Stephen E. Gibson
President
August 10, 2000
--------------------------------------------------------------------------------
PERFORMANCE HIGHLIGHTS (as of 6/30/00)
NET ASSET VALUE PER SHARE
Class A $13.23
Class B $12.94
Class C $12.97
Class T $13.25
Class Z $13.22
--------------------------------------------------------------------------------
Because economic and market conditions change frequently, there can be no
assurance that the trends described in this report will continue or come to
pass.
<PAGE>
--------------------------------------------------------------------------------
PERFORMANCE INFORMATION
--------------------------------------------------------------------------------
Value of a $10,000 Investment
6/30/90 - 6/30/00
--------------------------------------------------------------------------------
PERFORMANCE OF A $10,000 INVESTMENT IN
NEWPORT TIGER FUND IN ALL
SHARES FROM 6/30/90 - 6/30/00
Without With
sales sales
charge charge
---------------------------------------------------------------------------
Class A $24,004 $22,623
---------------------------------------------------------------------------
Class B $23,037 $23,037
---------------------------------------------------------------------------
Class C $23,074 $23,074
---------------------------------------------------------------------------
Class T $24,264 $22,869
---------------------------------------------------------------------------
Class Z $24,211
-------------------------------------------------------------------------------
Newport Tiger Fund Newport Tiger Fund MSCI EAFE
without sales charge with sales charge Index
--------------------------------------------------------------------------------
06/30/90 $10,000 $ 9,425 $10,000
07/31/90 10,559 9,952 10,255
08/31/90 9,025 8,506 9,139
09/30/90 7,610 7,172 7,873
10/31/90 8,161 7,691 8,852
11/30/90 7,805 7,356 8,464
12/31/90 7,940 7,483 8,469
01/31/91 8,238 7,765 8,702
02/28/91 8,972 8,457 9,613
03/31/91 9,280 8,747 8,967
04/30/91 9,596 9,044 8,993
05/31/91 9,843 9,277 9,193
06/30/91 9,655 9.100 8,477
07/31/91 9,860 9,293 8,830
08/31/91 9,459 8,915 8,771
09/30/91 9,279 8,745 9,149
10/31/91 9,415 8,874 9,123
11/30/91 9,705 9,147 8,866
12/31/91 10,004 9,429 9,376
01/31/92 10,602 9,992 9,296
02/29/92 10,934 10,306 9,170
03/31/92 10,652 10,040 8,718
04/30/92 11,258 10,611 8,794
05/31/92 12,001 11,311 9,312
06/30/92 12,027 11,335 9,009
07/31/92 11,754 11,078 8,690
08/31/92 11,301 10,651 9,123
09/30/92 11,421 10,764 8,788
10/31/92 12,633 11,906 8,431
11/30/92 12,505 11,786 8,473
12/31/92 12,208 11,506 8,471
01/31/93 12,593 11,869 8,569
02/28/93 13,296 12,531 8,869
03/31/93 13,356 12,588 9,475
04/30/93 14,375 13,548 10,347
05/31/93 14,769 13,920 10,509
06/30/93 14,460 13,629 10,327
07/31/93 14,443 13,612 10,638
08/31/93 15,316 14,436 11,418
09/30/93 15,624 14,726 11,178
10/31/93 18,134 17,091 11,485
11/30/93 17.800 16,776 10,570
12/31/93 21,406 20,175 11,313
01/31/94 20,426 19,251 12,178
02/28/94 19,376 18,262 12,111
03/31/94 17,415 16,414 11,937
04/30/94 18,638 17,566 12,540
05/31/94 19,515 18,393 12,253
06/30/94 18,466 17,404 12,248
07/31/94 19,429 18,312 12,532
08/31/94 20,566 19,383 12,744
09/30/94 20,445 19,269 12,295
10/31/94 20,702 19,512 12,669
11/30/94 19,050 17,955 12,104
12/31/94 18,846 17,763 12,196
01/31/95 16,979 16,002 11,884
02/28/95 18,566 17,499 11,871
03/31/95 18,986 17,894 12,408
04/30/95 18,986 17,894 12,963
05/31/95 21,222 20,002 12,837
06/30/95 20,942 19,738 12,694
07/31/95 21,466 20,232 13,524
08/31/95 20,749 19,556 12,958
09/30/95 21,133 19,918 13,113
10/31/95 20,993 19,786 12,732
11/30/95 21,063 19,851 13,001
12/31/95 21,911 20,651 13,557
01/31/96 24,041 22,659 13,730
02/29/96 24,041 22,659 13,771
03/31/96 23,866 22,493 13,954
04/30/96 23,796 22,428 14,388
05/31/96 23,673 22,311 14,175
06/30/96 23,161 21,830 14,286
07/31/96 21,860 20,603 13,876
08/31/96 22,633 21,332 13,867
09/30/96 23,319 21,978 14,249
10/31/96 23,179 21,847 14,093
11/30/96 24,375 22,974 14,695
12/31/96 24,373 22,972 14,591
01/31/97 24,232 22,838 14,316
02/28/97 24,195 22,804 14,417
03/31/97 22,707 21,402 14,692
04/30/97 22,317 21,033 14,655
05/31/97 24,303 22,905 15,419
06/30/97 25,338 23,881 16,336
07/31/97 25,711 24,232 16,696
08/31/97 21,319 20,093 15,497
09/30/97 22,155 20,881 16,492
10/31/97 16,749 15,786 15,273
11/30/97 16,322 15,384 15,210
12/31/97 16,144 15,216 15,431
01/31/98 13,529 12,751 16,233
02/28/98 16,432 15,487 17,167
03/31/98 16,271 15,335 18,102
04/30/98 14,784 13,934 18,374
05/31/98 12,562 11,840 18,635
06/30/98 11,201 10,557 18,810
07/31/98 10,394 9,796 19,054
08/31/98 8,760 8,256 16,543
09/30/98 10,322 9,728 16,082
10/31/98 13,571 12,791 17,871
11/30/98 14,217 13.400 18,799
12/31/98 14,230 13,412 19,555
01/31/99 13,350 12,583 19,574
02/28/99 13,296 12,531 18,960
03/31/99 14,559 13,722 19,957
04/30/99 17.800 16,776 20,757
05/31/99 16,737 15,775 19,669
06/30/99 18,734 17,656 20,659
07/31/99 18,715 17,639 21,287
08/31/99 18,842 17,759 21,425
09/30/99 18,073 17,034 21,794
10/31/99 19,026 17,932 22,543
11/30/99 21,644 20,399 23,350
12/31/99 24,683 23,263 25,618
01/31/00 23,456 22,107 24,201
02/29/00 24,244 22,850 25,092
03/31/00 25,306 23,851 25,837
04/30/00 23,474 22,124 24,253
05/31/00 21,880 20,622 23,712
06/30/00 24,004 22,623 24,744
The Morgan Stanley Capital International (MSCI) EAFE (GDP) Index is an unmanaged
index that tracks the performance of equity securities of developed countries
outside North America, including Hong Kong and Singapore. Unlike mutual funds,
indexes are not investments and do not incur fees or expenses. It is not
possible to invest directly in an index.
<TABLE>
<CAPTION>
Average Annual Total Returns as of 6/30/00
Share Class
Inception A B C T Z
Date 4/1/95 4/1/95 4/1/95 5/31/89 5/31/89
--------------------------------------------------------------------------------------------------------------
Without With Without With Without With Without With Without
sales sales sales sales sales sales sales sales sales
charge charge charge charge charge charge charge charge charge
--------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Six-month
(cumulative) (1.78)% (7.43)% (2.19)% (7.08)% (2.11)% (3.09)% (1.71)% 7.36% 1.78%
--------------------------------------------------------------------------------------------------------------
1 year 29.20% 21.77% 28.25% 23.25% 28.29% 27.29% 29.52% 22.07% 29.23%
--------------------------------------------------------------------------------------------------------------
5 years 2.75% 1.54% 1.98% 1.60% 1.98% 1.98% 2.99% 1.78% 2.94%
--------------------------------------------------------------------------------------------------------------
10 years 9.15% 8.51% 8.70% 8.70% 8.72% 8.72% 9.27% 8.62% 9.24%
Past performance cannot predict future results. Returns and value of an investment will vary, resulting in a
gain or loss on sale. All results shown assume reinvestment of distributions. The "with sales charge" returns
include the maximum 5.75% sales charge for Class A and T shares, the appropriate Class B contingent deferred
sales charge for the holding period after purchase as follows: through first year - 5%, second year - 4%, third
year - 5%, fourth year - 3%, fifth year - 2%, sixth year - 1%, thereafter - 0% and the Class C contingent
deferred sales charge of 1% for the first year only. Performance for different share classes will vary based on
differences in sales charges and fees associated with each class.
Performance results reflect any voluntary waivers or reimbursements of Fund expenses by the Advisor of its
affiliates. Absent these waivers or reimbursement arrangments, performance results would have been lower.
The Fund was originally introduced on 5/31/89 and became Colonial Newport Tiger Fund on 4/1/95 when Class A, B,
and D (since designated as C) shares were offered. The Fund was renamed Liberty Newport Tiger Fund on July 14,
2000. As of 4/30/98, 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 prior to the inception date of the Class A, B,
and C shares would have been lower.
</TABLE>
<PAGE>
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TOP 10 HOLDINGS AS OF 6/30/00
CHINA MOBILE 9.7%
DBS GROUP HOLDINGS 6.4%
LI & FUNG 5.7%
HUTCHISON WHOMPOA 5.6%
CHEUNG KONG 5.4%
PETROCHINA 5.1%
HONG KONG & CHINA GAS 5.0%
SINGAPORE PRESS HOLDINGS 4.6%
SUN HUNG KAI PROPERTIES 4.1%
HSBC HOLDING 4.1%
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 HOLD THESE SECURITIES IN THE FUTURE.
TOP 5 COUNTRY BREAKDOWN
AS OF 6/30/00
HONG KONG 62.1%
SINGAPORE 18.4%
KOREA 7.1%
TAIWAN 6.5%
INDIA 4.2%
COUNTRY BREAKDOWN IS CALCULATED AS A PERCENTAGE OF NET ASSETS. BECAUSE
THE FUND IS ACTIVELY MANAGED, THERE CAN BE NO GUARANTEE THE FUND WILL
CONTINUE TO MAINTAIN THE CURRENT COUNTRY BREAKDOWN IN THE FUTURE.
BOUGHT
----------------------------------------------------------------------
SAMSUNG ELECTRONICS (3.4% OF FUND ASSETS)
SAMSUNG, BASED IN KOREA, HAS DIVERSIFIED, GROWING FROM A PRODUCER OF
MEMORY CHIPS TO A MANUFACTURER OF HIGH-QUALITY FLAT PANEL SCREENS AND
CELLULAR PHONES. THIS ACHIEVEMENT HAS ENABLED IT TO EXPAND FROM A
HIGHLY CYCLICAL COMPANY INTO ONE WITH EXCITING GROWTH PROSPECTS.
SAMSUNG IS NOW THE WORLD'S FOURTH-LARGEST CELLULAR MANUFACTURER.
CHINA UNICOM (1.4% OF FUND ASSETS)
CHINA UNICOM IS THE SECOND-LARGEST MOBILE PHONE COMPANY IN CHINA. IT IS
BENEFITING FROM A SURGE IN WIRELESS SUBSCRIBERSHIP. MARKET PENETRATION
STILL REMAINS LOW, HOWEVER, AUGURING WELL FOR FUTURE GROWTH.
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
PORTFOLIO MANAGERS' REPORT
-------------------------------------------------------------------------------
FUND HELD UP WELL DURING A
VOLATILE PERIOD
For the six-month period ended June 30, 2000, Liberty Newport Tiger Fund's Class
A shares had a total return of negative 1.78% without a sales charge. The Fund
outperformed the Lipper Pacific ex-Japan Funds category which had an average
return for the same period of negative 10.26%.(1) These negative returns refect
the consolidation in Asian stock markets that began in the second quarter.
Although any such correction may be considered a disappointment, this particular
pullback had its roots in high market valuations following over a year of
impressive appreciation. We continue to believe that the region is in the early
stages of an economic recovery.
(1) Lipper Inc., a widely respected data provider in the industry, calculates
an average total return for mutual funds with similar investment objectives
as the Liberty Newport Tiger Fund. The total return calculated for the
Lipper Pacific ex-Japan Funds Category was negative 10.26% for the six
months ended June 30, 2000. The Fund's Class A Shares were ranked in the
first quartile for one year (4 out of 80), in the second quartile for three
years (25 out of 67), and in the second quartile for ten years (16 out of
33). Past performance cannot predict future results.
THE FACE OF ASIA IS CHANGING
The financial crisis of 1997-1998 left a permanent imprint on Asia's investment
landscape. Some Southeast Asian economies have not been able to reform
themselves to meet the Fund's criteria of market liquidity and long- term growth
in Gross Domestic Product (GDP). As a result, our positions in the Philippines
and Malaysia have been reduced.
Our attention and enthusiasm has shifted to China and India. These two countries
account for approximately 40% of the world's population, and they are moving
rapidly toward more open, free-market economies.
In Greater China, which now represents two-thirds of the Fund's assets, economic
growth expectations are on the rise and exports for the year are up 29%. India,
which now represents 4.2% of Fund assets, is not yet a mature market and many
risks remain. However, we are encouraged by the new government's efforts in the
areas of deregulation and privatization. Clearly they are spurred by the model
that China has provided, and they aren't alone in seeing the benefits of open
markets. Even North Korea has indicated that it will be opening its economy, if
not because of ideology, then through economic necessity.
POLITICS DOMINATE THE 2000 HEADLINES
The first six months of 2000 included many important events that could shape
the region for years to come. In May, the U.S. Congress voted in favor of
permanent, normal trade relations with China -- a decisive step towards
China's long-sought entry into the world Trade Organization.
The second quarter also saw the election of Chen Shui Bian to the presidency
of Taiwan. Chen was the opposition candidate and therefore the least favorite
of China. This was of great concern because Taiwan has over 4,500 companies
operating in China and total investment of over $45 billion. The market was
expected to fall with the change in status quo but, instead, it rose because
Chen was conciliatory toward China, and China took a wait-and-see stance. Our
investment in Taiwan (6.5% of Fund assets) has, to this point, been held back
because of concerns about political risks and capital controls, so we will be
watching the new administration with special interest.
Korea is another country whose macroeconomic growth would seem to indicate
that it should hold a fully weighted position in the portfolio. We have
remained underweighted, however, as we hold out for restructuring and
government reforms. We also have concerns about bad debts at the individual
company level, which reached crises proportions for such well-known names as
Daewoo and Hyundai. The resulting difficulties at Investment Trust
Corporation, which owns a significant portfolio of Korean corporate debt, are
emblematic of our concern.(2) Within this mixed environment, the Korean market
has given back much of its 1999 gains, justifying our underweighted position.
(2) It is important to note that the Fund is not invested in any of these
companies as of June 30, 2000. International investing offers significant
long-term growth potential, but also involves certain risks. Because many of
the Tiger countries are considered emerging markets, they are subject to a
greater degree of social, political, currency and economic instability.
--------------------------------------------------------------------------------
TOP FIVE SECTORS (AS OF 6/30/00)
--------------------------------------------------------------------------------
Telecoms: 16.7%
Financials: 13.7%
Multi Industry: 13.6%
Real Estate: 12.2%
Consumer/Retail: 10.5%
SECTOR BREAKDOWNS ARE CALCULATED AS A PERCENTAGE OF NET ASSETS. BECAUSE THE
FUND IS ACTIVELY MANAGED, THERE CAN BE NO GUARANTEE THE FUND WILL MAINTAIN
THIS BREAKDOWN.
OUTLOOK: CONTINUED ECONOMIC RECOVERY
With the exception of Indonesia, the Philippines, Thailand and Malaysia, most
of the Tiger countries of Asia have been building upon the recovery that began
in 1998. Sovereign borders are opening, triggering a new wave of merger and
acquisition activity. Forecasts of GDP growth are being pushed upward
throughout the region. And the capital markets themselves are being improved
through better regulation and the rapid growth of available investment
alternatives. With countries such as China and India taking active steps to
become economically competitive, we anticipate that Asia will provide an
exciting investment environment for years to come.
/s/ Tim Tuttle
/s/ Chris Legallet
Tim Tuttle and Chris Legallet are portfolio co-managers of Newport Tiger Fund.
Mr. Tuttle is president of Newport Fund Management, Inc. and Mr. Legallet is
chief investment officer and senior vice president of Newport Fund Management,
Inc.
<PAGE>
<TABLE>
--------------------------------------------------------------------------------------------------------
INVESTMENT PORTFOLIO
--------------------------------------------------------------------------------------------------------
June 30, 2000 (Unaudited)
(In thousands)
COMMON
STOCKS - 99.5%
<CAPTION>
COUNTRY SHARES VALUE
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
FINANCE, INSURANCE & REAL ESTATE - 39.3%
DEPOSITORY INSTITUTIONS - 13.4%
DBS Bank Ltd. Si 5,148 $ 66,122
HSBC Holdings PLC (a) HK 3,653 41,873
Hang Seng Bank Ltd. HK 2,014 19,118
Overseas-Chinese Banking Corp., Ltd. Si 1,170 8,057
Public Bank Ma 3,736 3,736
----------
138,906
----------
HOLDING COMPANIES - 13.6%
Citic Pacific Ltd. HK 7,355 38,494
Hutchison Whampoa Ltd. HK 4,610 57,954
Singapore Technologies Engineering Ltd. Si 18,065 26,549
Swire Pacific Ltd., Series A HK 2,992 17,502
----------
140,499
----------
NONDESPOSITORY CREDIT INSTITUTIONS - 0.1%
Housing Development
Finance Ltd. Id 102 1,277
----------
REAL ESTATE - 12.2%
Cheung Kong Holdings Ltd. HK 5,047 55,840
City Developments Ltd. Si 5,570 21,592
HKR International Ltd. HK 15,205 6,095
Sun Hung Kai Properties Ltd. HK 5,870 42,167
----------
125,694
----------
------------------------------------------------------------------------------------------------------
MANUFACTURING - 10.1%
ELECTRONIC COMPONETS - 4.2%
Chartered Semiconductor Manufacturing Ltd., ADR (b) 23 2,052
Samsung Electronics In 108 35,603
United Microelectronics Corp., Ltd. Tw 2,028 5,643
----------
43,298
----------
FOOD & KINDRED PRODUCTS - 0.5%
Ceil Jedang Corp. In 61 2,787
Hindustan Lever Ltd. Id 35 2,233
----------
5,020
----------
MEASURING & ANALYZING INSTRUMENTS - 0.4%
China Hong Kong Photo Products Holdings, Ltd. HK 30,575 3,804
----------
PRINTING & PUBLISHING - 5.0%
Singapore Press Holdings Ltd. Si 3,063 47,856
South China Morning Post Ltd. HK 4,609 3,577
----------
51,433
----------
MINING & ENERGY - 5.1%
OIL & GAS EXTRACTION
PetroChina Co., Ltd., Class H HK 254,682 52,925
----------
------------------------------------------------------------------------------------------------------
RETAIL TRADE - 4.1%
APPAREL & ACCESSORY STORES - 2.8%
Esprit Holdings Ltd. HK 2,247 2,335
Giordano International Ltd. HK 17,382 26,422
----------
28,757
----------
FOOD STORES - 1.3%
President Chain Store Corp. Tw 3,650 13,661
----------
------------------------------------------------------------------------------------------------------
SERVICES - 10.2%
COMPUTER RELATED SERVICES - 2.4%
Datacraft Asia Ltd. 1,628 14,323
Synnex Technology International Corp. Tw 1,957 10,510
----------
24,833
----------
COMPUTER SOFTWARE - 7.4%
Infosys Technologies Ltd. Id 190 35,325
NIIT Ltd. Id 24 1,188
NIIT Ltd. Id 61 3,020
Taiwan Semicomductor Manufacturing Co., ADR (b) Tw 7,763 36,889
----------
76,422
----------
HOTELS, CAMPS & LODGING - 0.4%
Genting Berhad Ma 1,133 4,176
----------
------------------------------------------------------------------------------------------------------
TRANSPORTATION, COMMUNICATION, ELECTRIC,
GAS & SANITARY SERVICES - 21.8%
AIR TRANSPORTATION 1.4%
China Unicom Ltd. HK 6,726 14,279
----------
COMMUNICATION - 0.9%
Advanced Information Services Th 758 9,436
----------
ELECTRIC SERVICES - 0.2%
Hong Kong Electric Holdings Ltd. HK 608 1,956
----------
GAS SERVICES - 5.0%
Hong Kong & China Gas Co., Ltd. HK 46,365 52,041
----------
TELECOMMUNICATION - 14.3%
Cable & Wireless HKT
Ltd. (b) HK 6,136 13,112
China Telecom Ltd. (a)(b) HK 11,254 100,159
Korea Telecom Corp. ADR 363 17,578
SK Telecom In 54 17,548
----------
148,397
----------
WHOLESALE TRADE - 8.9%
DURABLE GOODS
Johnson Electric Holdings Ltd. HK 3,550 33,587
Li & Fung Ltd. HK 11,682 58,443
----------
92,030
----------
Total Common Stocks (cost of $690,599)(c) 1,028,844
----------
SHORT-TERM OBLIGATIONS - 0.3%
PAR
------------------------------------------------------------------------------------------------------
Repurchase agreement with SBC Warburg Ltd., dated 06/30/00 due
07/03/00 at 6.600% collateralized by U.S. Treasury notes with
various maturities to 2026, market value $3,468 (repurchase
proceeds $3,399) $ 3,397 3,397
----------
OTHER ASSETS & LIABILITIES, NET 0.2% 2,029
------------------------------------------------------------------------------------------------------
NET ASSETS - 100.0% $1,034,270
==========
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 the same
<CAPTION>
SUMMARY OF SECURITIES % OF
BY COUNTRY COUNTRY VALUE TOTAL
---------------------------------------------------------------------------------------
<S> <C> <C> <C>
Hong Kong HK $ 641,683 62.4%
Singapore Si 170,176 16.5%
Taiwan Tw 66,703 6.5%
Korea Ko 55,938 5.4%
India Id 43,043 4.2%
United States 33,953 3.3%
Thailand Th 9,436 0.9%
Malaysia Ma 7,912 0.8%
---------- -----
$1,028,844 100.0%
========== =====
See notes to financial statements.
</TABLE>
<PAGE>
-------------------------------------------------------------------------------
STATEMENT OF ASSETS & LIABILITIES
-------------------------------------------------------------------------------
June 30, 2000 (Unaudited)
(In thousands except for per share amounts and footnotes)
ASSETS
Investments at value (cost $690,599) $1,028,844
Short-term obligations 3,397
----------
1,032,241
Cash including foreign currencies (cost $1,141) $ 1,141
RECEIVABLE FOR:
Investments sold 13,061
Fund shares sold 3,300
Dividends 786
Interest 1
Other 16 18,305
-------- ----------
Total Assets 1,050,546
LIABILITIES
Cash including foreign currencies (cost $6,703) 6,704
PAYABLE FOR:
Fund shares repurchased 4,795
ACCRUED:
Management fee 638
Administration fee 206
Transfer agent fee 172
Bookkeeping fee 30
Distribution fee - Class B 10
Distribution fee - Class C (a)
Other 3,721
--------
Total Liabilities 16,276
----------
NET ASSETS $1,034,270
==========
Net asset value & redemption price
per share - Class A ($360,811/27,280) $13.23(b)
==========
Maximum offering price per share -
Class A ($13.23/0.9425) $14.04(c)
----------
Net asset value & offering price per share -
Class B ($359,042/27,747) $12.94(b)
----------
Net asset value & offering price per share -
Class C ($58,363/4,501) $12.97(b)
----------
Net asset value & redemption price per share -
Class T ($60,073/4,533) $13.25
----------
Maximum offering price per share -
Class T ($13.25/0.9425) $14.06(c)
----------
Net asset value, offering & redemption price
per share - Class Z ($195,981/14,822) $13.22
----------
COMPOSITION OF NET ASSETS
Capital paid in $ 989,800
Undistributed net investment income 340
Accumulated net realized loss (290,729)
Net unrealized appreciation on:
Investments 334,857
Foreign currency transactions 2
----------
$1,034,270
(a) Rounds to less than one.
(b) Redemption price per share is equal to net asset value less any applicable
contingent deferred sales charge.
(c) On sales of $50,000 or more the offering price is reduced.
See notes to financial statements.
<PAGE>
-------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
-------------------------------------------------------------------------------
For the Six Months Ended June 30, 2000
(Unaudited)
(In thousands)
INVESTMENT INCOME
Dividends $ 9,785
Interest 897
--------
Total Investment Income (net of nonreclaimable
foreign taxes withheld at source which
amounted to $836) 10,682
EXPENSES
Management fee $ 4,134
Administration fee 1,336
Service fee - Class A, Class B, Class C 981
Distribution fee - Class B 1,407
Distribution fee - Class C 233
Transfer agent fee 1,381
Bookkeeping fee 188
Trustee fee 22
Custodian fee 346
Audit fee 15
Legal fee 32
Registration fee 52
Reports to shareholders 22
Other 42 10,191
-------- --------
Net Investment Income 491
--------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON PORTFOLIO POSITIONS
NET REALIZED GAIN (LOSS) ON:
Investments 43,311
Foreign currency transactions (333)
--------
Net Realized Gain 42,978
NET CHANGE IN NET UNREALIZED APPRECIATION/
DEPRECIATION DURING THE PERIOD ON:
Investments (61,848)
Foreign currency transactions 1
--------
Net Change in Unrealized Appreciation/Depreciation (61,847)
--------
Net Loss (18,869)
--------
Decrease in Net Assets from Operations $(18,378)
========
See notes to financial statements.
<PAGE>
<TABLE>
----------------------------------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
----------------------------------------------------------------------------------------------------------
<CAPTION>
(In thousands)
(UNAUDITED) YEAR ENDED
SIX MONTHS ENDED DECEMBER 31,
JUNE 30, 2000 1999
----------------------------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income $ 491 $ 6,175
Net realized gain (loss) 42,978 (22,854)
Net change in unrealized appreciation/depreciation (61,847) 522,830
---------- ----------
Net Increase (Decrease) from Operations (18,378) 506,151
FUND SHARE TRANSACTIONS:
Receipts for shares sold - Class A 240,416 337,545
Value of distributions reinvested - Class A -- --
Cost of shares repurchased - Class A (279,467) (351,949)
---------- ----------
(39,051) (14,404)
---------- ----------
Receipts for shares sold - Class B 17,452 44,246
Value of distributions reinvested - Class B -- --
Cost of shares repurchased - Class B (56,247) (95,444)
---------- ----------
(38,795) (51,198)
---------- ----------
Receipts for shares sold - Class C 6,586 16,627
Value of distributions reinvested - Class C -- --
Cost of shares repurchased - Class C (19,686) (24,040)
---------- ----------
(13,100) (7,413)
---------- ----------
Receipts for shares sold - Class T 317 977
Value of distributions reinvested - Class T -- --
Cost of shares repurchased - Class T (8,454) (14,788)
---------- ----------
(8,137) (13,811)
---------- ----------
Receipts for shares sold - Class Z 117,897 248,592
Value of distributions reinvested - Class Z -- --
Cost of shares repurchased - Class Z (133,466) (269,699)
---------- ----------
(15,569) (21,107)
Net Decrease from Fund Share Transactions (114,652) (107,933)
---------- ----------
Total Increase (Decrease) (133,030) 398,218
---------- ----------
NET ASSETS
Beginning of period 1,167,300 769,082
========== ==========
End of period (including undistributed and net of
overdistributed net investment income of $340 and $151,
respectively) 1,034,270 1,167,300
---------- ----------
NUMBER OF FUND SHARES:
Sold - Class A 18,917 34,856
Issued for distributions reinvested - Class A -- --
Repurchased - Class A (21,560) (37,079)
---------- ----------
(2,643) (2,223)
---------- ----------
Sold - Class B 1,358 4,753
Issued for distributions reinvested - Class B -- --
Repurchased - Class B (4,385) (10,384)
---------- ----------
(3,027) (5,631)
---------- ----------
Sold - Class C 517 1,768
Issued for distributions reinvested - Class C -- --
Repurchased - Class C (1,529) (2,524)
---------- ----------
(1,012) (756)
---------- ----------
Sold - Class T 24 108
Issued for distributions reinvested - Class T -- --
Repurchased - Class T (645) (1,589)
---------- ----------
(621) (1,481)
---------- ----------
Sold - Class Z 9,172 30,097
Issued for distributions reinvested - Class Z -- --
Repurchased - Class Z (10,289) (32,091)
---------- ----------
(1,117) (1,994)
---------- ----------
See notes to financial statements.
</TABLE>
<PAGE>
-------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
-------------------------------------------------------------------------------
NOTE 1. INTERIM FINANCIAL STATEMENTS
In the opinion of management of Liberty Newport Tiger Fund (formerly Newport
Tiger Fund) (the Fund), a series of Liberty Funds 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, 2000 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 Phillipines). 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 to Class A
shares purchased without an initial sales charge on redemptions made within
eighteen months on an original purchase of $1 million to $25 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 as follows:
CONVERTS TO
ORIGINAL PURCHASE CLASS A SHARES
----------------- --------------
Less than $250,000 8 years
$250,000 to less than $500,000 4 years
$500,000 to less than $1,000,000 3 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 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 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), and realized and unrealized gains
(losses) are allocated to each class proportionately on a daily basis for
purposes of determining the net asset value of each class.
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.
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:
AVERAGE NET ASSETS ANNUAL FEE RATE
------------------ ---------------
First $100 million 1.00%
Next $1.4 billion 0.75%
Next $1.0 billion 0.70%
Over $2.5 billion 0.65%
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:
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%
Over $3 billion 0.001%
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 through December 31, 1999.
Effective January 1, 2000, the Transfer Agent fee was changed to a monthly fee
comprised of 0.07% annually of average net assets plus charges based on the
number of shareholder accounts and transactions.
UNDERWRITING DISCOUNTS, SERVICE AND DISTRIBUTION FEES:
Liberty Funds Distributor, Inc. (the Distibutor), a subsisdiary of the
Administator, is the Fund's principal underwriter. For the six months ended June
30, 2000 the Fund has been advised that the Distibutor retained net underwriting
discounts of $36,560 on sales of the Fund's Class A and Class T shares and
received contingent deferred sales charges (CDSC) of $28,469, $1,078,889 and
$1,313 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, 2000 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, 2000 purchases and sales of investments,
other than short-term obligations, were $166,911,430 and $226,184,478,
respectively.
Unrealized appreciation (depreciation) at June 30, 2000 based on cost of
investments for both financial statement and federal income tax purposes was:
Gross unrealized appreciation $397,982,880
Gross unrealized depreciation (59,738,202)
------------
Net unrealized appreciation $338,244,678
------------
CAPITAL LOSS CARRYFORWARDS:
At December 31, 1999, capital loss carryforwards available (to the extent
provided in regulations) to offset future realized gains were approximately as
follows:
YEAR OF CAPITAL LOSS
EXPIRATION CARRYFORWARD
---------- ------------
2005 $ 81,206,000
2006 229,760,000
2007 22,165,000
------------
$333,131,000
------------
Expired capital loss carryforwards, if any, are recorded as a reduction of
capital paid in.
To the extent loss carryforwards are used to offset any future realized gains,
it is unlikely that such gains would be distributed since they may be taxable to
shareholders as ordinary income.
OTHER:
There are certain 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, 2000.
<PAGE>
<TABLE>
-----------------------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
-----------------------------------------------------------------------------------------------------------------------------
Selected data for a share of each class outstanding throughout each period are as follows:
<CAPTION>
(UNAUDITED)
SIX MONTHS ENDED JUNE 30, 2000
CLASS A CLASS B CLASS C CLASS T CLASS Z
----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 13.470 $ 13.230 $ 13.250 $ 13.480 $ 13.460
-------- -------- -------- -------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)(a) 0.022 (0.026) (0.026) 0.038 0.038
Net realized and unrealized loss (0.262) (0.264) (0.254) (0.268) (0.278)
-------- -------- -------- -------- --------
Total from Investment Operations (0.240) (0.290) (0.280) (0.230) (0.240)
-------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 13.230 $ 12.940 $ 12.970 $ 13.250 $ 13.220
======== ======== ======== ======== ========
Total return(b)(c) (1.78)% (2.27)% (2.19)% (1.71)% (1.78)%
======== ======== ======== ======== ========
RATIOS TO AVERAGE NET ASSETS
Expenses(d)(e) 1.67% 2.42% 2.42% 1.42% 1.42%
Net investment income(d)(e) 0.33% (0.42)% (0.42)% 0.58% 0.58%
Portfolio turnover(c) 16% 16% 16% 16% 16%
Net assets at end of period (000) $360,811 $359,042 $ 58,363 $ 60,073 $195,981
(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.
<CAPTION>
YEAR ENDED DECEMBER 31, 1999
CLASS A CLASS B CLASS C CLASS T CLASS Z
----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 7.780 $ 7.700 $ 7.710 $ 7.770 $ 7.750
-------- -------- -------- -------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income(a) 0.091 0.021 0.020 0.116 0.116
Net realized and unrealized gain 5.599 5.509 5.520 5.594 5.594
-------- -------- -------- -------- --------
Total from Investment Operations 5.690 5.530 5.540 5.710 5.710
-------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 13.470 $ 13.230 $ 13.250 $ 13.480 $ 13.460
======== ======== ======== ======== ========
Total return(b) 73.14% 71.82% 71.85% 73.49% 73.68%
======== ======== ======== ======== ========
RATIOS TO AVERAGE NET ASSETS
Expenses(c) 1.77% 2.52% 2.52% 1.52% 1.52%
Net investment income(c) 0.97% 0.22% 0.22% 1.22% 1.22%
Portfolio turnover 14% 14% 14% 14% 14%
Net assets at end of period (000) $403,082 $407,179 $ 73,038 $ 69,503 $214,498
(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 agreements had no impact.
</TABLE>
<PAGE>
<TABLE>
-----------------------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
-----------------------------------------------------------------------------------------------------------------------------
Selected data for a share of each class outstanding throughout each period are as follows:
<CAPTION>
YEAR ENDED DECEMBER 31, 1998
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) 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(b) (12.08)% (12.77)% (12.89)% (11.87)% (12.09)%
======== ======== ======== ======== ========
RATIOS TO AVERAGE NET ASSETS
Expenses(c) 1.78% 2.53% 2.53% 1.53% 1.53%
Net investment income(c) 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
(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 agreements had no impact.
<CAPTION>
YEAR ENDED DECEMBER 31, 1997
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) 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(c) (33.95)% (34.41)% (34.36)% (33.76)% (33.76)%
======== ======== ======== ======== ========
RATIOS TO AVERAGE NET ASSETS
Operating expenses(d) 1.73% 2.48% 2.48% 1.48% 1.48%
Interest expense (e) (e) (e) (e) (e)
Total expenses(d) 1.73% 2.48% 2.48% 1.48% 1.48%
Net investment income (loss)(d) 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
(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) 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 agreements had no impact.
(e) Rounds to less than 0.01%.
</TABLE>
<PAGE>
<TABLE>
-----------------------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
-----------------------------------------------------------------------------------------------------------------------------
Selected data for a share of each class outstanding throughout each period are as follows:
<CAPTION>
YEAR ENDED DECEMBER 31, 1996
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(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
(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 agreements had no impact.
<CAPTION>
YEAR ENDED DECEMBER 31, 1995
CLASS A(a) CLASS B(a) CLASS C(a) CLASS T(b) CLASS Z(b)
----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.860 $ 10.860 $ 10.860 $ 10.800 $ 10.800
-------- -------- -------- -------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)(c) 0.067 (0.003) (0.003) 0.099 0.099
Net realized and unrealized gain 1.617 1.594 1.615 1.656 1.656
-------- -------- -------- -------- --------
Total from Investment Operations 1.684 1.591 1.612 1.755 1.755
-------- -------- -------- -------- --------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.060) (0.037) (0.038) (0.081) (0.081)
From net realized gains (0.024) (0.024) (0.024) (0.024) (0.024)
-------- -------- -------- -------- --------
Total Distributions Declared to
Shareholders (0.084) (0.061) (0.062) (0.105) (0.105)
-------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 12.460 $ 12.390 $ 12.410 $ 12.450 $ 12.450
======== ======== ======== ======== ========
Total return(d) 15.52%(e) 14.65%(e) 14.85%(e) 16.28% 16.28%
======== ======== ======== ======== ========
RATIOS TO AVERAGE NET ASSETS
Expenses(f) 1.37%(e) 1.93%(e) 1.93%(e) 1.60% 1.60%
Net investment income(f) 0.28%(e) (0.28)%(e) (0.28)%(e) 0.75% 0.75%
Portfolio turnover 4% 4% 4% 4% 4%
Net assets at end of period (000) $196,870 $112,588 $ 21,420 $195,986 $345,583
(a) Class A, Class B and Class C shares were initially offered on April 1, 1995. Per share data reflects activity from that
date.
(b) 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.
(c) Per share data was calculated using average shares outstanding during the period.
(d) Total return at net asset value assuming all distributions reinvested and no initial sales charge or contingent deferred
sales charge.
(e) Not annualized
(f) 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.
</TABLE>
<PAGE>
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TRUSTEE & TRANSFER AGENT
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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)
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, Park Avenue Equity Partners (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
Academic Vice President and Dean of Faculties, Boston College (formerly Dean,
Boston College School of Management)
THOMAS E. STITZEL
Business Consultant and Chartered Financial Analyst (formerly Professor of
Finance, College of Business, Boise State University), Chartered Financial
Analyst
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 Liberty Newport Tiger Fund is:
Liberty Funds Services, Inc.
P.O. Box 1722
Boston, MA 02105-1722
800-345-6611
The Funds mail one shareholder report to each shareholder address. If you
would like more than one report, please call 800-426-3750 and additional
reports will be sent to you.
This report has been prepared for shareholders of Liberty 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.
Semiannual Report:
Liberty Newport Tiger Fund
<PAGE>
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whether it's saving for your kids education, building your retirement nest egg,
or managing your income . . . we can help. We offer a diverse family of mutual
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for your best interests. Your advisor can help you establish a plan for reaching
your personal financial goals and help you stay on track over the long-term.
It's a relationship that's focused on you and your needs.
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Liberty Newport Tiger Fund SEMIANNUAL REPORT, JUNE 30, 2000
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