<PAGE>
LETTER FROM THE PRESIDENT
- --------------------------------------------------------------------------------
Dear Shareholder:
I am pleased to present the semiannual report for Colonial U.S. Fund for
Growth for the six months ended December 31, 1994. This portfolio of U.S. common
stocks seeks to outperform the Standard & Poor's 500 Index over time. In fact,
since its inception on July 1, 1992, without adjusting for sales charges, your
Fund has surpassed this equity benchmark.
FUND PERFORMANCE (7/1/94 - 12/31/94)
CLASS A CLASS B CLASS D
INCEPTION 7/1/92 7/1/92 7/1/94
- --------------------------------------------------------------------------------
Distributions
declared per share $0.8050 $0.7618 $0.7734
- --------------------------------------------------------------------------------
Fund total return for the
period, assuming
reinvestment of all
distributions and no
sales charges or CDSC 4.82% 4.38% 4.37%
- --------------------------------------------------------------------------------
Total return for the period for the
unmanaged S&P 500 Index 4.87%
- --------------------------------------------------------------------------------
Fund average annual total
return since inception,
assuming reinvestment
of all distributions
and no sales charges
or CDSC 9.21% 8.31% 4.37%(1)
- --------------------------------------------------------------------------------
Average annual total return for the
unmanaged S&P 500 Index since 7/1/92 7.85%
- --------------------------------------------------------------------------------
Net asset value per
share on 12/31/94 $ 11.21 $ 11.14 $ 11.19
- --------------------------------------------------------------------------------
ECONOMIC/MARKET OVERVIEW
During the six months ended December 31, 1994, the Federal Reserve Board
raised interest rates on two occasions, with November's increase of
three-quarters of a percentage point particularly noteworthy. This was the most
significant increase of the calendar year and served to reaffirm what most
financial observers believed: The Fed is seriously committed to keeping
inflation in check.
We believe that the most dramatic rise in interest rates is behind us.
However, further Fed tightening is likely early in 1995, as the pace of economic
growth is still strong. Investors who remain focused on fundamentals, such as
corporate earnings, should benefit in this environment. Several years of
downsizing and restructuring are contributing to stronger earnings growth and
significant long-term value.
[John A. McNeice, Jr./President Photo]
INVESTMENT STRATEGY
Because the Fund's goal is to outperform the S&P 500 Index, your Fund
remained fully invested in the stock market and maintained the same overall
sector and industry exposure relative to the S&P 500. We continue to believe
that the best way to outperform the S&P 500 is through superior stock selection,
and your portfolio management team at State Street Global Advisors is
continually investing in those companies that exhibit the best combination of
fundamental value and rising earnings estimates.
Please refer to the Portfolio Management Team commentary on page two for more
information on your Fund's investment strategy.
Sincerely,
/s/John A. McNeice, Jr.
John A. McNeice, Jr.
President
February 10, 1995
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS AS OF 12/31/94(2)
CLASS A CLASS B CLASS D
NAV MOP NAV W/CDSC NAV W/CDSC
<S> <C> <C> <C> <C> <C> <C>
1 year -0.34% -6.07% -1.05% -5.67% n/a n/a
Since
inception 9.21% 6.66% 8.31% 7.24% 4.37%(1) 2.36%(1)
- --------------------------------------------------------------------------------
<FN>
(1) Cumulative since inception (7/1/94).
(2) Net asset value (NAV) returns do not include sales charges or the CDSC. Past
performance cannot predict future results. Return and value of an investment
will vary, resulting in a gain or loss on sale. Maximum offering price (MOP)
returns include the maximum sales charge of 5.75%; the contingent deferred sales
charge (CDSC) returns reflect the applicable charges: 5% one year, 3% since
inception.
</TABLE>
<PAGE>
REPORT FROM COLONIAL MANAGEMENT
- --------------------------------------------------------------------------------
COMMENTARY FROM SUB-ADVISER, STATE STREET GLOBAL ADVISORS
DOUG HOLMES AND TONY RYAN, PORTFOLIO MANAGEMENT TEAM
MINIMIZING MARKET RISK
As you know, the objective of Colonial U.S. Fund for Growth is
straightforward: To outperform the unmanaged S&P 500 Index. To achieve this
goal, we keep the Fund's industry weightings closely tied to that of the S&P
500, and focus on picking the stocks we believe offer the most potential in
today's markets. Sector bets have no role in our decision-making process. Within
each sector, we apply rigorous analysis to determine the best stocks.
If we stay within specified boundaries and the stocks we've selected do well,
we can produce incremental return to the S&P 500. Even if the market goes down,
we should produce returns that are comparable to the S&P 500.
COLONIAL U.S. FUND FOR GROWTH AND
THE S&P 500 INDEX TOP FIVE INDUSTRY SECTORS
The Fund's sector allocation closely mirrors that of the S&P 500 Index. Fund
percentages are based on net assets as of December 31, 1994.
[BAR CHART]
<TABLE>
<CAPTION>
S&P 500 FUND
------- ----
<S> <C> <C>
BASIC INDUSTRIES 8.0% 7.9%
FINANCIAL 12.4% 12.3%
UTILITIES 12.7% 12.4%
CONSUMER CYCLICALS 16.3% 16.9%
INDUSTRIALS 19.9% 20.6%
CONSUMER STAPLES 20.9% 20.3%
</TABLE>
DEMYSTIFYING VALUE AND GROWTH INVESTING
Buying and selling stocks within each sector is the result of a lengthy
analysis that focuses on two independent measures: Value and growth. A value
orientation uncovers stocks with low prices relative to the stock's fundamental
value. As the market recognizes these stocks' underlying value we feel these
stocks will exhibit above-average performance over time. This strategy creates
opportunities for appreciation and most importantly, lower risk. A growth
orientation assesses growth prospects for each stock. The net effect is for us
to select issues that are priced at a level that allows us to post superior
returns as our growth targets are realized.
Understanding company fundamentals and buying a stock at the right price are
critical to both the growth and value styles of investing. The difference is
relative emphasis. Generally, a value manager is looking for improving prospects
but not necessarily high growth. A growth manager is looking for high growth and
earnings potential. Our management style, combining both, strives to capture the
upside movement of the growth cycle and the downside protection of the value
cycle.
Perhaps our strategy is best illustrated by our recent purchase of Circus
Circus Enterprises, Kansas City Power & Light, and Consolidated Freight. We
believe that these securities are undervalued and have positive earnings
momentum. Positive fundamentals such as sales growth, cash flow, and price
valuation demonstrate that these securities are solid investments by our value
standards. In addition, they show positive earnings estimates, making them
attractive buys based on our growth standards.
2
<PAGE>
INVESTMENT PORTFOLIO (UNAUDITED, IN THOUSANDS) DECEMBER 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COMMON STOCKS - 98.5% SHARES VALUE
- ------------------------------------------------------------------
<S> <C> <C>
CONSTRUCTION - 0.1%
BUILDING CONSTRUCTION
Pulte Corp. 9 $ 198
- ------------------------------------------------------------------
FINANCE, INSURANCE & REAL ESTATE - 11.6%
DEPOSITORY INSTITUTIONS - 5.2%
First Union Corp. 176 7,270
Republic New York Corp. 54 2,421
Star Banc Corp. 6 207
Wachovia Corp. 83 2,690
Washington Federal Savings
& Loan Association 50 876
Wilmington Trust Corp. 20 450
-------
13,914
-------
HOLDING & OTHER INVESTMENT COMPANIES - 0.1%
Medicine Shoppe International, Inc. 7 179
-------
INSURANCE CARRIERS - 3.1%
American General Corp. 122 3,449
St. Paul Companies 22 994
US Healthcare, Inc. 98 4,024
-------
8,467
-------
NONDEPOSITORY CREDIT INSTITUTIONS - 1.0%
Beneficial Corp. 46 1,794
Student Loan Marketing Association 28 913
-------
2,707
-------
SECURITY BROKERS & DEALERS - 2.2%
Franklin Resources, Inc. 163 5,796
- ------------------------------------------------------------------
MANUFACTURING - 55.6%
CHEMICALS - 12.5%
E.I. duPont de Nemours & Co., Inc. 71 3,982
Ecolab, Inc. 6 128
Johnson & Johnson 107 5,842
Merck & Co., Inc. 225 8,563
Morton International, Inc. 215 6,139
Schering-Plough Corp. 93 6,860
Sherwin-Williams Co. 63 2,077
-------
33,591
-------
ELECTRONIC & ELECTRICAL EQUIPMENT - 4.9%
General Electric Co. 111 5,681
Intel Corp. 117 7,493
-------
13,174
-------
FABRICATED METAL - 1.8%
Newell Co. 226 4,740
-------
FOOD & KINDRED PRODUCTS - 9.7%
Adolph Coors Co., Class B 7 122
Anheuser Busch, Inc. 20 1,033
Archer Daniels Midland Co. 74 1,526
Coca-Cola Co. 16 814
Coca-Cola Enterprises, Inc. 6 102
Kellogg Co. 71 4,150
Lancaster Colony Corp. 88 2,576
PepsiCo, Inc. 251 9,095
Phillip Morris Co., Inc. 116 6,664
-------
26,082
-------
FURNITURE & FIXTURES - 1.5%
Hillenbrand Industries, Inc. 31 869
Leggett & Platt, Inc. 92 3,224
-------
4,093
-------
MACHINERY & COMPUTER EQUIPMENT - 4.8%
3Com Corp. (a) (b) 21
Apple Computer, Inc. 10 390
Cabletron Systems, Inc. (a) 18 837
Cummins Engine Company, Inc. 9 398
Dover Corp. 39 2,003
Hewlett-Packard Co. 86 8,619
Smith International, Inc. 39 484
-------
12,752
-------
MEASURING & ANALYZING INSTRUMENTS - 2.3%
Becton, Dickinson & Co. 64 3,086
Emerson Electric Co. 20 1,269
Johnson Controls, Inc. 9 426
Millipore Corp. 16 779
Polaroid Corp. 16 510
-------
6,070
-------
MISCELLANEOUS MANUFACTURING - 0.0%
Hasbro, Inc. (b) 3
-------
PAPER & PAPER MILLS - 2.1%
Avery Dennison Corp. (b) 4
Champion International Corp. 150 5,486
Louisiana-Pacific Corp. 5 142
Union Camp Corp. (b) 9
-------
5,641
-------
PETROLEUM REFINING - 8.5%
Amoco Corp. 132 7,775
Exxon Corp. 199 12,113
Texaco, Inc. 50 2,994
-------
22,882
-------
PRIMARY METAL - 0.5%
Reynolds Metals Co. 9 456
Worthington Industries, Inc. 39 786
-------
1,242
-------
PRIMARY SMELTING - 0.8%
Phelps Dodge Corp. 35 2,190
-------
PRINTING & PUBLISHING - 1.7%
Belo A.H. Corp., Series A 8 463
Gannett Co., Inc. 65 3,440
John H. Harland Co. 33 660
-------
4,563
-------
RUBBER & PLASTIC - 1.1%
Reebok International Ltd. 74 2,919
-------
</TABLE>
See notes to investment portfolio.
3
<PAGE>
<TABLE>
<CAPTION>
COMMON STOCKS - CONT. SHARES VALUE
- --------------------------------------------------------------------
<S> <C> <C>
MANUFACTURING - CONT.
STONE, CLAY, GLASS & CONCRETE - 0.0%
Armstrong World Industries, Inc. (b) $ 15
---------
TRANSPORTATION EQUIPMENT - 3.4%
Allied Signal, Inc. 59 2,009
Chrysler Corp. 8 396
Dana Corp. 37 858
Eaton Corp. 25 1,252
Echlin, Inc. 17 498
Sundstrand Corp. 83 3,795
Textron, Inc. 6 317
---------
9,125
- --------------------------------------------------------------------
MINING - 0.4%
METAL MINING
Homestake Mining Co. 36 611
Newmont Gold Co. 11 385
---------
996
- --------------------------------------------------------------------
RETAIL TRADE - 6.4%
FOOD STORES - 0.6%
Albertson's, Inc. 50 1,450
---------
GENERAL MERCHANDISE STORES - 2.4%
Dillard Department Stores, Inc., Class A 100 2,675
Waban, Inc. (a) 217 3,854
---------
6,529
---------
MISCELLANEOUS RETAIL - 2.7%
Walgreen Co. 166 7,254
---------
RESTAURANTS - 0.7%
Luby's Cafeterias, Inc. 86 1,916
- --------------------------------------------------------------------
SERVICES - 4.1%
AMUSEMENT & RECREATION - 0.2%
Circus Circus Enterprises, Inc. (a) 4 84
Mirage Resorts, Inc. (a) 1 20
Showboat, Inc. 37 538
---------
642
---------
BUSINESS SERVICES - 3.4%
Automatic Data Processing, Inc. 116 6,763
Equifax, Inc. 22 583
Interpublic Group of Companies, Inc. 5 151
Oracle Systems Corp. (a) 14 613
Parametric Technology Corp. (a) 27 942
---------
9,052
---------
ENGINEERING, ACCCOUNTING,
RESEARCH & MANAGEMENT - 0.5%
Dun & Bradstreet Corp. 27 1,467
- --------------------------------------------------------------------
TRANSPORTATION, COMMUNICATIONS, ELECTRIC,
GAS & SANITARY SERVICES - 18.2%
AIR TRANSPORTATION - 0.4%
AMR Corp. (a) 12 660
Federal Express Corp. (a) 8 452
---------
1,112
---------
COMMUNICATIONS - 10.4%
Alltel Corp. 90 2,696
Ameritech Corp. 214 8,624
Capital Cities ABC, Inc. 66 5,635
Southwestern Bell Corp. 212 8,551
Sprint Corp. 84 2,321
---------
27,827
---------
ELECTRIC SERVICES - 3.6%
American Electric Power Co., Inc 51 1,667
Atlantic Energy, Inc. 135 2,378
Boston Edison Co. 10 234
Central & South West Corp. 27 604
Consolidated Edison Company of New
York, Inc. 22 567
General Public Utilities Corp. 70 1,824
Kansas City Power & Light Co. 10 236
NIPSCO Industries, Inc. 24 714
Northeast Utilities Co. 28 605
San Diego Gas & Electric Co. 40 770
---------
9,599
---------
GAS SERVICES - 1.1%
Panhandle Eastern Corp. 154 3,042
---------
MOTOR FREIGHT & WAREHOUSING - 0.7%
Consolidated Freightways, Inc. 84 1,868
---------
RAILROAD - 1.1%
Kansas City Southern Industries, Inc. 78 2,414
Union Pacific Corp. 13 607
---------
3,021
---------
SANITARY SERVICES - 0.9%
Browning Ferris Industries, Inc. 80 2,256
- --------------------------------------------------------------------
WHOLESALE TRADE - 2.1%
DURABLE GOODS - 2.0%
Genuine Parts Co. 146 5,252
---------
NONDURABLE GOODS - 0.1%
Stanhome, Inc. 12 380
- --------------------------------------------------------------------
Total investments (cost $256,591)(c) 264,006
- --------------------------------------------------------------------
SHORT-TERM OBLIGATIONS - 0.7% PAR
- --------------------------------------------------------------------
Repurchase agreement with Lehman
Government Securities, Inc., dated
12/30/94, due 01/03/95 at 5.85%,
collateralized by U.S. Treasury
notes with various maturities to
1999, market value $1,864
(repurchase proceeds $1,826) $ 1,825 1,825
- --------------------------------------------------------------------
OTHER ASSETS & LIABILITIES, NET - 0.8% 2,176
- --------------------------------------------------------------------
NET ASSETS - 100.0% $ 268,007
- --------------------------------------------------------------------
</TABLE>
See notes to investment portfolio.
4
<PAGE>
INVESTMENT PORTFOLIO - CONTINUED
- --------------------------------------------------------------------------------
Notes to investment portfolio:
(a) Non-income producing.
(b) Rounds to less than one.
(c) Cost for federal income tax purposes is $256,775.
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (unaudited)
- --------------------------------------------------------------------------------
NOTE 1. INTERIM FINANCIAL STATEMENTS
In the opinion of management of Colonial U.S. Fund for Growth (the Fund), a
series of Colonial Trust VI, the accompanying financial statements contain all
normal and recurring adjustments necessary for the fair presentation of the
financial position of the Fund at December 31, 1994, 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
The Fund is a Massachusetts business trust, registered under the Investment
Company Act of 1940, as amended, as a diversified, open-end, management
investment company. The Fund may issue an unlimited number of shares. The Fund
offers three classes of shares; Class A, Class B and Class D. Class A shares
are sold with a front-end sales charge and Class B shares are subject to an
annual distribution fee and a contingent deferred sales charge. Class B shares
will convert to Class A shares when they have been outstanding approximately
eight years. Class D shares are subject to a reduced front-end sales charge, a
contingent deferred sales charge on redemptions made within one year after
purchase and a continuing distribution fee. The following significant
accounting policies are consistently followed by the Fund in the preparation of
its financial statements and conform to generally accepted accounting
principles.
- --------------------------------------------------------------------------------
SECURITY VALUATION AND TRANSACTIONS
Equity securities are valued at the last sale price or, in the case of
unlisted or listed securities, for which there were no sales during the day, at
current quoted bid prices.
Short-term obligations with a maturity of 60 days or less are valued at
amortized cost.
Portfolio positions which cannot be valued as set forth above are valued at
fair value under procedures approved by the Trustees.
Security transactions are accounted for on the date the securities are
purchased or sold.
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 B and Class D 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 the average shares outstanding
during the period. In addition, Class B and Class D net investment income per
share data reflects the distribution fee applicable to Class B and Class D
shares only.
Class B and Class D ratios are calculated by adjusting the expense and net
investment income ratios for the Fund for the entire period by the distribution
fee applicable to Class B and Class D shares only.
- --------------------------------------------------------------------------------
FEDERAL INCOME TAXES
Consistent with the Fund's policy to qualify as a regulated investment
company and to distribute all of its taxable income, no federal income tax has
been accrued.
- --------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
Distributions to shareholders are recorded on the ex-date.
continued on page 9.
5
<PAGE>
FINANCIAL STATEMENTS
- -------------------------------------------------------------------------------
<TABLE>
STATEMENT OF ASSETS & LIABILITIES (UNAUDITED)
December 31, 1994
(in thousands except for per share amounts and footnote)
- ----------------------------------------------------------------
<S> <C> <C>
ASSETS
Investments at value (cost $256,591)............... $ 264,006
Short-term obligations ............................ 1,825
-----------
265,831
Receivable for:
Fund shares sold.................... $1,731
Dividends........................... 781
Interest............................ 1
Deferred organization expenses......... 45
Other.................................. 32 2,590
------ -----------
Total assets.............................. 268,421
Liabilities
Payable for Fund shares
repurchased.......................... 400
Accrued deferred Trustees fees......... 14
------
Total liabilities......................... 414
-----------
NET ASSETS......................................... $ 268,007
===========
Net asset value & redemption price per share -
Class A ($100,341/8,950)....................... $11.21
-------
Maximum offering price per share - Class A
($11.21/0.9425)................................. $11.89*
-------
Net asset value & offering price per share -
Class B ($166,422/14,933)...................... $11.14
-------
Net asset value per share -
Class D ($1,244/111)........................... $11.19
-------
Maximum offering price per share - Class D
($11.19/0.9900)................................. $11.30
-------
COMPOSITION OF NET ASSETS
Capital paid in................................. $ 257,839
Undistributed net investment income............. 459
Accumulated net realized gain................... 2,294
Net unrealized appreciation..................... 7,415
-----------
$ 268,007
===========
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS (UNAUDITED)
Six months ended December 31, 1994
(in thousands)
- ----------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME
Dividends.......................................... $ 3,852
Interest........................................... 81
-----------
Total investment income....................... 3,933
EXPENSES
Management fee....................... 1,053
Service fee.......................... 328
Distribution fee - Class B........... 605
Distribution fee - Class D........... 3
Transfer agent....................... 375
Bookkeeping fee...................... 51
Trustees fees........................ 8
Custodian fee........................ 14
Audit fee............................ 13
Legal fee............................ 6
Registration fees.................... 28
Reports to shareholders.............. 4
Amortization of deferred
organization expenses............. 9
Other................................ 27 2,524
------ -----------
Net investment income............... 1,409
-----------
NET REALIZED AND UNREALIZED GAIN
ON PORTFOLIO POSITIONS:
Net realized gain.................................. 3,701
Net unrealized appreciation
during the period................................ 6,356
-----------
Net gain............................ 10,057
-----------
Net increase in net assets from
operations....................................... $ 11,466
-----------
<FN>
* On sales of $50,000 or more the offering price is reduced.
</TABLE>
See notes to financial statements.
6
<PAGE>
FINANCIAL STATEMENTS - CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
(in thousands)
- --------------------------------------------------------------------------------
<CAPTION>
(unaudited)
Six months
ended Year ended
December 31 June 30
----------- ----------
1994(a) 1994
----------- ----------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations
Net investment income........................................ $ 1,409 $ 1,466
Net realized gain............................................ 3,701 18,065
Net unrealized appreciation (depreciation)................... 6,356 (24,112)
-------- --------
Net increase (decrease) from operations............... 11,466 (4,581)
-------- --------
Distributions from
Net investment income - Class A.............................. (586) (876)
Net investment income - Class B.............................. (375) (644)
Net investment income - Class D.............................. (4)
Net realized gains - Class A................................. (6,158) (1,098)
Net realized gains - Class B................................. (10,279) (2,556)
Net realized gains - Class D................................. (77)
-------- --------
(6,013) (9,755)
Fund share transactions -------- --------
Receipts for shares sold - Class A........................... 9,084 33,129
Receipts for shares issued in the merger with
Colonial U.S. Equity Index Trust........................... 42,693
Value of distributions reinvested - Class A.................. 6,313 1,860
Cost of shares repurchased - Class A......................... (10,227) (20,534)
-------- --------
5,170 57,148
-------- --------
Receipts for shares sold - Class B........................... 20,811 77,544
Value of distributions reinvested - Class B.................. 10,221 3,057
Cost of shares repurchased - Class B......................... (10,785) (14,439)
-------- --------
20,247 66,162
-------- --------
Receipts for shares sold - Class D........................... 1,236
Value of distributions reinvested - Class D.................. 78
Cost of shares repurchased - Class D......................... (12)
-------- --------
1,302
-------- --------
Net increase from Fund share transactions............. 26,719 123,310
-------- --------
Total increase.................................. 20,706 113,555
NET ASSETS
Beginning of period.......................................... 247,301 133,746
-------- --------
End of period (including undistributed net investment
income of $459 and $15, respectively ...................... $268,007 $247,301
======== ========
<FN>
(a) Class D shares were initially offered on July 1, 1994.
</TABLE>
See notes to financial statements.
7
<PAGE>
FINANCIAL STATEMENTS - CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS - CONTINUED
(in thousands)
- --------------------------------------------------------------------------------
<CAPTION>
(unaudited)
Six months
ended Year ended
December 31 June 30
----------- ----------
1994(a) 1994
----------- ----------
<S> <C> <C>
NUMBER OF FUND SHARES
Sold - Class A............................................. 767 2,762
Issued in the merger with Colonial U.S. Equity
Index Trust.............................................. 3,552
Issued for distributions reinvested - Class A.............. 562 155
Repurchased - Class A...................................... (858) (1,713)
------ ------
471 4,756
------ ------
Sold - Class B............................................. 1,763 6,508
Issued for distributions reinvested - Class B.............. 915 254
Repurchased - Class B...................................... (916) (1,218)
------ ------
1,762 5,544
------ ------
Sold - Class D............................................. 105
Issued for distributions reinvested - Class D.............. 7
Repurchased - Class D...................................... (1)
------ ------
111
------ ------
Net increase in shares outstanding.................. 2,344 10,300
Outstanding at
Beginning of period........................................ 21,650 11,350
------ ------
End of period.............................................. 23,994 21,650
------ ------
<FN>
(a) Class D shares were initially offered on July 1, 1994.
</TABLE>
See notes to financial statements.
8
<PAGE>
NOTES TO FINANCIAL STATEMENTS - continued
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
DEFERRED ORGANIZATION EXPENSES
The Fund incurred $90,095 of expenses in connection with its organization,
initial registration with the Securities and Exchange Commission and with
various states, and the initial public offering of its shares. These expenses
were deferred and are being amortized on a straight-line basis over five years.
- --------------------------------------------------------------------------------
OTHER
Corporate actions are recorded on the ex-date.
Interest income is recorded on the accrual basis.
The Fund's custodian takes possession through the federal book-entry system
of securities collaterizing 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 ANDCOMPENSATION PAID TO AFFILIATES
MANAGEMENT FEE
Colonial Management Associates, Inc. (the Adviser) oversees the Fund's
management and furnishes accounting and other services and office facilities for
a monthly fee equal to 0.80% annually of the Fund's average net assets. State
Street Global Advisor's (the Sub-Adviser) furnishes the Fund with investment
management.
- -------------------------------------------------------------------------------
BOOKKEEPING FEE
The Adviser provides bookkeeping and pricing services for $27,000 per year
plus 0.035% of the Fund's average net assets over $50 million.
- -------------------------------------------------------------------------------
TRANSFER AGENT
Colonial Investors Service Center, Inc. (the Transfer Agent) an affiliate
of the Adviser, provides shareholder services for a monthly fee equal to 0.25%
annually of the Fund's average net assets, and receives a reimbursement for
certain out of pocket expenses.
- -------------------------------------------------------------------------------
UNDERWRITING DISCOUNTS, SERVICE AND DISTRIBUTION FEES
The Adviser, through its Colonial Investment Services (the Distributor)
division (effective March 1,1995 a separate subsidiary of the Adviser), is
the Fund's principal underwriter. During the six months ended December 31, 1994,
the Distributor retained net underwriting discounts of $28,222 on sales of the
Fund's Class A shares and received contingent deferred sales charges (CDSC) of
$263,748 and $2,497, on Class B and Class D share redemptions, respectively.
The Fund has adopted a 12b-1 plan which requires it to pay the Distributor
a service fee equal to 0.25% annually of the Fund's 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
shares and Class D shares, respectively.
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 Adviser 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 1.25% annually of the Fund's average net
assets.
For the six months ended December 31, 1994, the Fund's operating expenses
did not exceed the 1.25% expense limit.
9
<PAGE>
NOTES TO FINANCIAL STATEMENTS - CONTINUED
- --------------------------------------------------------------------------------
OTHER
The Fund pays no compensation to its officers, all of whom are employees of
the Adviser.
The Fund's Trustees may participate in a deferred compensation plan which
may be terminated at any time. Obligations of the plan will be paid solely out
of the Fund's assets.
- --------------------------------------------------------------------------------
NOTE 4. PORTFOLIO INFORMATION
During the six months ended December 31, 1994, purchases and sales of
investments, other than short-term obligations, were $133,761,090 and
$123,897,532, respectively.
Unrealized appreciation (depreciation) at December 31, 1994, based on
cost of investments for federal income tax purposes was:
Gross unrealized appreciation................ $15,161,026
Gross unrealized depreciation................ (7,929,679)
-----------
Net unrealized appreciation............... $ 7,231,347
===========
- -------------------------------------------------------------------------------
OTHER
The Fund may focus its investments in certain industries, subjecting it to
greater risk than a fund that is more diversified.
- -------------------------------------------------------------------------------
NOTE 5. MERGER INFORMATION
On December 17, 1993, Colonial U.S. Equity Index Trust (CUSEIT) was merged
into the Fund by a non-taxable exchange of 3,552,164 shares of the Fund (valued
at $42,692,626) for the 1,885,911 of CUSEIT's shares then outstanding. The
assets of CUSEIT acquired included unrealized appreciation of $13,953,550. The
aggregate net assets of the Fund and CUSEIT immediately after the merger were
$227,715,458.
10
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
Selected data for a share of each class outstanding throughout each period are as follows:
- --------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
(UNAUDITED)
SIX MONTHS ENDED
DECEMBER 31 YEAR ENDED JUNE 30
--------------------------------------- -------------------------------------------
1994 1994 1993(b)
--------------------------------------- ------------------- -------------------
CLASS A CLASS B CLASS D(c) CLASS A CLASS B CLASS A CLASS B
-------- ------- ---------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value - Beginning of period.. $ 11.460 $11.400 $11.460 $11.820 $ 11.770 $10.000 $10.000
-------- ------- ------- ------- -------- ------- -------
Income (loss) from investment
operations:
Net investment income (a)............ 0.091 0.046 0.046 0.142 0.053 0.103 0.020
Net realized and unrealized
gain (loss) on investments......... 0.464 0.456 0.457 (0.119) (0.122) 1.784 1.763
-------- ------- ------- ------- -------- ------- -------
Total from investment operations... 0.555 0.502 0.503 0.023 (0.069) 1.887 1.783
-------- ------- ------- ------- -------- ------- -------
Less distributions declared to
shareholders:
From net investment income........... (0.070) (0.027) (0.038) (0.138) (0.056) (0.067) (0.013)
From net realized gains.............. (0.735) (0.735) (0.735) (0.245) (0.245) -- --
-------- ------- ------- ------- -------- ------- -------
Total distributions
declared to shareholders: ......... (0.805) (0.762) (0.773) (0.383) (0.301) (0.067) (0.013)
-------- ------- ------- ------- -------- ------- -------
Net asset value - End of period........ $ 11.210 $11.140 $11.190 $11.460 $ 11.400 $11.820 $11.770
-------- ------- ------- ------- -------- ------- -------
Total return (d)....................... 4.82%(f) 4.38%(f) 4.37%(f) 0.05% (0.71)% 18.90%(e) 17.84%(e)
-------- ------- ------- ------- -------- ------- -------
Ratios to average net assets
Expenses............................. 1.45%(g) 2.20%(g) 2.20%(g) 1.49% 2.24% 1.50% 2.25%
Fees waived by the adviser........... -- -- -- -- -- 0.01% 0.01%
Net investment income................ 1.53%(g) 0.78%(g) 0.78%(g) 1.19% 0.44% 0.93% 0.18%
Portfolio turnover..................... 95%(g) 95%(g) 95%(g) 117% 117% 98% 98%
Net assets at end of period (000)...... $100,341 $166,422 $ 1,244 $97,180 $150,121 $44,009 $89,737
<FN>
(a) Net of fees waived or
borne by the adviser which
amounted to........................ ---- ---- ---- ---- ---- $ 0.001 $ 0.001
(b) The Fund commenced investment operations July 1, 1992.
(c) Class D shares were initially offered on July 1, 1994.
(d) Total return at net asset value assuming all distributions reinvested and no initial sales charge or CDSC.
(e) Had the adviser not waived or reimbursed a portion of expenses total return would have been reduced.
(f) Not annualized.
(g) Annualized.
</TABLE>
This material may be used with potential investors if it is preceded or
accompanied by a current Fund prospectus containing more complete information
including fees, risks, and expenses.
The Fund's Trustees recently approved a minor modification to the wording of
your Fund's objective, to more precisely describe the Fund's investment
approach. No fund policies or practices were changed. As of 2/28/95, the
Fund's objective will be to seek growth exceeding the S&P 500 Index performance.
11
<PAGE>
[COLONIAL MUTUAL FUNDS LOGO]
COLONIAL
U.S. FUND
FOR GROWTH
SEMIANNUAL REPORT
DECEMBER 31, 1994
[COLONIAL MUTUAL FUNDS LOGO]
COLONIAL INVESTMENT SERVICES (C)1995
One Financial Center, Boston, Massachusetts 02111-2621
Printed on recycled paper
US-03/574A-1294
