<PAGE>
<TABLE>
INVESTMENT PORTFOLIO
JUNE 30, 1996 (IN THOUSANDS)
<CAPTION>
COMMON STOCKS - 89.8% SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
AGRICULTURE, FORESTRY & FISHING - 0.4%
AGRICULTURE - CROPS - 0.4%
RJR Nabisco Holdings Corp. (a) $ 12
----
- --------------------------------------------------------------------------------
CONSTRUCTION - 0.3%
HEAVY CONSTRUCTION - NON BUILDING CONSTRUCTION - 0.3%
Halliburton Co. (a) 11
----
- --------------------------------------------------------------------------------
FINANCE, INSURANCE & REAL ESTATE - 17.1%
DEPOSITORY INSTITUTIONS - 7.7%
BankAmerica Corp. 1 68
Comerica, Inc. 2 71
Commerce Bancshares, Inc. (a) 14
Star Banc Corp. (a) 20
Zions Bancorp. 1 65
----
238
----
INSURANCE CARRIERS - 2.3%
Cigna Corp. 1 71
----
NONDEPOSITORY CREDIT INSTITUTIONS - 1.5%
Beneficial Corp. 1 45
----
SECURITY BROKERS & DEALERS - 5.6%
Morgan Stanley Group, Inc. 1 64
Paine Webber Group, Inc. 2 57
Salomon, Inc. 1 40
T. Rowe Price Associates (a) 12
----
173
----
- --------------------------------------------------------------------------------
MANUFACTURING - 45.4%
CHEMICALS & ALLIED PRODUCTS - 14.3%
American Home Products Corp. 1 84
Avon Products, Inc. 1 63
Bristol-Myers Squibb Co. 1 72
Clorox Co. (a) 18
Monsanto Co. 1 16
Pfizer, Inc. (a) 14
Rhone-Poulenc Rorer, Inc. 1 74
Rohm & Haas Co. (a) 12
Schering-Plough Corp. 1 75
Warner-Lambert Co. (a) 11
----
439
----
</TABLE>
6
<PAGE>
<TABLE>
Investment Portfolio/June 30, 1996
- --------------------------------------------------------------------------------
<S> <C> <C>
FABRICATED METAL - 3.6%
Harsco Corp. 1 $ 40
Stanley Works 2 71
----
111
----
FOOD & KINDRED PRODUCTS - 2.4%
Phillip Morris Co., Inc. 1 73
----
FURNITURE & FIXTURES - 1.9%
Hillenbrand Industries, Inc. 2 60
----
MACHINERY & COMPUTER EQUIPMENT - 1.5%
Baker Hughes, Inc. 1 16
Pentair, Inc. 1 15
Pitney Bowes, Inc. (a) 14
----
45
----
MEASURING & ANALYZING INSTRUMENTS - 1.7%
Eastman Kodak Co. (a) 8
Honeywell, Inc. 1 33
Mallinckrodt Group, Inc. (a) 12
----
53
----
PAPER PRODUCTS - 0.4%
Avery Dennison Corp. (a) 11
----
PETROLEUM REFINING - 8.2%
Ashland Oil, Inc. 2 67
Kerr-McGee Corp. (a) 12
Murphy Oil Corp. 1 54
Pennzoil Co. 1 28
Phillips Petroleum Co. (a) 13
Texaco, Inc. 1 67
Valero Energy Corp. 1 13
----
254
----
PRINTING & PUBLISHING - 4.2%
Gannett Co., Inc. 1 64
Washington Post Co. (a) 65
----
129
----
TOBACCO PRODUCTS - 0.4%
UST, Inc. (a) 14
----
</TABLE>
7
<PAGE>
<TABLE>
Investment Portfolio/June 30, 1996
<CAPTION>
- --------------------------------------------------------------------------------
COMMON STOCKS - CONT. SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
MANUFACTURING - CONT.
TRANSPORTATION EQUIPMENT - 6.8%
Chrysler Corp. 1 $ 62
Ford Motor Co. 1 16
TRW, Inc. 1 63
United Technologies Corp. 1 69
----
210
----
- --------------------------------------------------------------------------------
RETAIL TRADE - 4.8%
FOOD STORES - 1.3%
Giant Food, Inc. 1 39
----
GENERAL MERCHANDISE STORES - 3.5%
Mercantile Stores Co., Inc. 1 64
Sears, Roebuck & Co. 1 44
----
108
----
- --------------------------------------------------------------------------------
SERVICES - 3.2%
BUSINESS SERVICES - 2.8%
Equifax, Inc. 1 16
Omnicom Group, Inc. 2 70
----
86
----
ENGLISH, ACCOUNTING, RESEARCH & MANAGEMENT - 0.4%
Dun & Bradstreet Corp. (a) 13
----
- --------------------------------------------------------------------------------
TRANSPORTATION, COMMUNICATION, ELECTRIC ,
GAS & SANITARY SERVICES - 18.6%
COMMUNICATIONS - 2.2%
Southern New England
Telecommunications Corp. 2 67
----
ELECTRIC, GAS & SANITARY SERVICES - 1.7%
Illinova Corp. 1 14
MidAmerican Energy Co. 1 12
Pan Energy Corp. (a) 13
Teco Energy, Inc. 1 13
----
52
----
ELECTRIC SERVICES - 8.5%
Allegheny Power System, Inc. 2 68
Boston Edison Co. 1 13
Carolina Power & Light Co. (a) 15
DQE, Inc. 1 14
Florida Progress Corp. (a) 14
Idaho Power Co. 1 16
</TABLE>
8
<PAGE>
<TABLE>
Investment Portfolio/June 30, 1996
- --------------------------------------------------------------------------------
<S> <C> <C>
Kansas City Power & Light Co. 1 $ 14
NIPSCO Industries, Inc. (a) 16
New England Electric System (a) 11
Portland General Corp. (a) 12
Scana Corp. 1 14
Texas Utilities Co. (a) 13
Unicom Corp. (a) 6
Union Electric Co. (a) 12
Washington Water Power Co. 1 13
Western Resources, Inc. (a) 12
------
263
------
GAS SERVICES - 6.2%
Consolidated Natural Gas Co. 1 73
MCN Corp. 1 15
NICOR, Inc. 1 23
National Fuel Gas Co. (a) 14
People's Energy Corp. 2 67
------
192
------
TOTAL INVESTMENTS - 89.8% (cost of $2,680) (b) 2,769
<CAPTION>
------
SHORT-TERM OBLIGATIONS - 8.3% PAR
- --------------------------------------------------------------------------------
Repurchase agreement with Chase Securities,
Inc., dated 6/28/96, due 07/01/96 at 5.400%
collateralized by U.S. Treasury notes with
various maturities to 1998, market value $261,
(repurchase proceeds $255) $255 255
------
OTHER ASSETS & LIABILITIES, NET - 1.9% 60
- --------------------------------------------------------------------------------
NET ASSETS - 100.0% $3,084
------
NOTES TO INVESTMENT PORTFOLIO:
- --------------------------------------------------------------------------------
<FN>
(a) Rounds to less than one.
(b) Cost for federal income tax purposes is the same.
</TABLE>
See notes to financial statements.
9
<PAGE>
<TABLE>
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1996
<CAPTION>
(in thousands except for per share amounts and footnotes)
ASSETS
<S> <C> <C>
Investments at value (cost $2,680) $2,769
Short-term obligations 255
------
3,024
Dividend receivable $ 8
Expense reimbursement
due from Adviser 2
Deferred organization expenses 51
Other 1 62
--- ------
Total Assets 3,086
LIABILITIES
Accrued other 2
---
Total Liabilities 2
------
NET ASSETS $3,084
======
Net asset value & redemption price per share -
Class A ($2,570/250) $10.28
======
Maximum offering price per share - Class A
($10.28/0.9425) $10.91(a)
======
Net asset value & offering price per share -
Class B ($257/25) $10.26(b)
======
Net asset value & redemption price per share -
Class D ($257/25) $10.26(b)
======
Maximum offering price per share - Class D
($10.26/0.9900) $10.36
======
COMPOSITION OF NET ASSETS
Capital paid in $2,995
Undistributed net investment income 20
Accumulated net realized loss (20)
Net unrealized appreciation 89
------
$3,084
======
<FN>
(a) On sales of $50,000 or more the offering price is reduced.
(b) Redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
</TABLE>
See notes to financial statements.
10
<PAGE>
<TABLE>
STATEMENT OF OPERATIONS
FOR THE PERIOD ENDED JUNE 30, 1996 (a)
<CAPTION>
(in thousands)
<S> <C> <C>
INVESTMENT INCOME
Dividends $ 20
Interest 5
----
Total investment income 25
EXPENSES
Management fee $ 6
Service fee 2
Distribution fee - Class B 1
Distribution fee - Class D 1
Transfer agent 2
Bookkeeping fee 7
Registration fee (b)
Custodian fee 1
Legal fee 2
Amortization of deferred
organization expenses 3
Other (b)
----
25
Fees waived or borne by the Adviser (12) 13
---- ----
Net Investment Income 12
----
NET REALIZED & UNREALIZED GAIN (LOSS) ON PORTFOLIO POSITIONS
Net realized loss (20)
Net unrealized appreciation during
the period 109
Net Gain 89
----
Net Increase in Net Assets from Operations $101
====
<FN>
(a) The Fund commenced investment operations on March 25, 1996. The activity
shown is from the effective date of registration (March 31, 1996) with the
Securities and Exchange Commission.
(b) Rounds to less than one.
</TABLE>
See notes to financial statements.
11
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<CAPTION>
Period ended
(in thousands) June 30
------------
INCREASE (DECREASE) IN NET ASSETS 1996 (a)
<S> <C>
Operations:
Net investment income $ 12
Net realized loss (20)
Net unrealized appreciation 109
------
Net Increase from Operations 101
Fund Share Transactions :
Receipts for shares sold - Class A ----
Receipts for shares sold - Class B ----
Receipts for shares sold - Class D ----
------
Net Increase from Fund Share
Transactions 0
------
Total Increase 101
NET ASSETS
------
Beginning of period 2,983
End of period (including undistributed
net investment income of $20) $3,084
======
NUMBER OF FUND SHARES
Sold - Class A ----
------
Sold - Class B ----
------
Sold - Class D ----
------
<FN>
(a) The Fund commenced investment operations on March 25, 1996. The activity
shown is from the effective date of registration (March 31, 1996) with the
Securities and Exchange Commission.
</TABLE>
See notes to financial statements.
12
<PAGE>
Notes to Financial Statements/June 3O, 1996
NOTE 1. ACCOUNTING POLICIES
- --------------------------------------------------------------------------------
ORGANIZATION: Colonial Equity Income Fund (the Fund), a series of Colonial Trust
VI, is a diversified portfolio of a Massachusetts business trust, registered
under the Investment Company Act of 1940, as amend, as an open-end, management
investment company. The Fund's objective is to seek current income and long-
term growth. 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 preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates. The information contained in
this report is from the effective date of registration (March 31, 1996) with the
Securities and Exchange Commission through the period ended June 30, 1996. The
following is a summary of significant accounting policies consistently followed
by the Fund in the preparation of its financial statements.
SECURITY VALUATION AND TRANSACTIONS: Equity securities are valued at the last
sale price or, in the case of unlisted or listed securities for which there
were no sales during the day, at current quoted bid prices.
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.
Portfolio positions which cannot be valued as set forth above are valued at fair
value under procedures approved by the Trustees.
Security tranactions are accounted for on the date the securities are purchased,
sold or mature.
13
<PAGE>
Notes to Financial Statements/June 30, 1996
- --------------------------------------------------------------------------------
NOTE 1. ACCOUNTING POLICIES - CONT.
- --------------------------------------------------------------------------------
Cost is determined and gains (losses) are based upon the specific indentifi-
cation method for both financial statements 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.
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
fees 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.
INTEREST INCOME, DEBT DISCOUNT AND PREMIUM: Interest income is recorded on the
accrual basis. Original issue discount is accreted to interest income over the
life of a security with a corresponding increase in the cost basis; premium
and market discount are not amortized or accreted.
DEFERRED ORGANIZATION EXPENSES: The Fund incurred expenses of $53,387 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.
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
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 tranactions include the fluctuation in exchange rates on gains
(losses) between trade and settlement dates on securities transactions, gains
(losses) arising from the disposition of foreign currency and currency gains
(losses) between the accural and payment dates on dividends and interest income
and foreign withholding taxes.
14
<PAGE>
Notes to Financial Statements/June 30, 1996
- --------------------------------------------------------------------------------
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) on investments.
FORWARD CURRENCY CONTRACTS: The Fund may enter into forward currency contracts
to purchase or sell foreign currency at predetermined exchange rates in
connection with the settlement of purchases and sales of securities. The Fund
may also enter into forward curency 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 fo 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 was opened,
exposure is typically limited to the change in value of the contract (in U.S.
dollars) over the period it remains open. Risks may also arise if counterparties
fail to perform their obligations under the contracts.
OTHER: Corporate actions are recorded on the ex-date (except for certain
foreign securities which are recorded as soon after ex-date as the Fund becomes
aware of such), net of nonrebatable tax withholdings. Where a high level of
uncertainty as to collection exists, income on securities is recorded net of all
tax withholdings with any rebates recorded when received.
The Fund's custodian takes possession through the federal book-entry system
of securities collateralizing repurchase agreements. Collateral is marked-to-
market daily to ensure that the market value of the underlying assets remains
sufficient to protect the Fund. The Fund may experience costs and delays
in liquidating the collateral if the issuer defaults or enters bankruptcy.
NOTE 2. FEES AND COMPENSATION PAID TO AFFILIATES
- --------------------------------------------------------------------------------
MANAGEMENT FEE: Colonial Management Associates, Inc. (the Adviser) is the
investment Adviser of the Fund 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.
BOOKKEEPTING 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.
15
<PAGE>
Notes to Financial Statements/June 30, 1996
- --------------------------------------------------------------------------------
NOTE 2. FEES AND COMPENSATION PAID TO AFFILIATES - CONT.
- --------------------------------------------------------------------------------
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: Colonial Investment
Services, Inc. (the Distributor), an affiliate of the Adviser, is the Fund's
principal underwriter. For the period ended June 30, 1996, the Fund has been
advised that the Distributor retained no net underwriting discounts on sales of
the Fund's Class A shares and received no contingent deferred sales charges on
Class B and Class D share redemptions.
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% annually of the average net assets attributable to
Class B shares and Class D shares only.
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 1.30% annually of the Fund's average net
assets.
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 3. PORTFOLIO INFORMATION
- --------------------------------------------------------------------------------
INVESTMENT ACTIVITY: During the period March 31, 1996 through June 30, 1996,
purchases and sales of investments, other than short-term obligations, were
$544,254 and $436,376, respectively.
Unrealized appreciation (depreciation) at June 30, 1996, based on cost of
investments for both financial statement and federal income tax purposes was:
Gross unrealized appreciation $114,217
Gross unrealized depreciation (25,763)
--------
Net unrealized appreciation $ 88,454
========
16
<PAGE>
Notes to Financial Statements/June 30, 1996
- --------------------------------------------------------------------------------
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 foreign currency
exchange or the imposition of 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 4. LINE OF CREDIT
- --------------------------------------------------------------------------------
The Fund may borrow up to 10% of its net assets under a line of credit for
temporary or emergency purposes. Any borrowings bear interest at one of the
following options determined at the inception of the loan: (1) federal funds
rate plus 1/2 of 1%, (2) the lending bank's base rate or (3) IBOR offshore loan
rate plus 1/2 of 1%. There were no borrowings under the line of credit during
the period ended June 30, 1996.
NOTE 5. OTHER RELATED PARTY TRANSACTIONS
- --------------------------------------------------------------------------------
At June 30, 1996, Keyport Life Insurance Company owned 100 % of the Fund's
shares outstanding.
NOTE 6. OTHER OPERATIONAL AND CAPITAL ACTIVITY
- --------------------------------------------------------------------------------
For the period March 25, 1996 through March 31, 1996, the Fund had net
investment income of $2,655 and unrealized depreciation of $20,247. The
following is a summary of capital activity from March 25, 1996 through March 31,
1996.
Shares
Receipts for shares sold - Class A $2,500,000 250,000
Receipts for shares sold - Class B $ 250,000 25,000
Receipts for shares sold - Class D $ 250,000 25,000
17
<PAGE>
FINANCIAL HIGHLIGHTS (b)
<TABLE>
Selected data for a share of each class outstanding throughout the
period are as follows:
<CAPTION>
Period ended
June 30
-------------------------------------------------
1996 (c)
Class A Class B Class D
------- ------- -------
<S> <C> <C> <C>
Net asset value -
Beginning of period $ 9.940 $ 9.940 $ 9.940
======= ======= =======
INCOME FROM INVESTMENT OPERATIONS:
Net investment
income (a) 0.044 0.024 0.024
Net realized and
unrealized gain 0.296 0.296 0.296
------- ------- -------
Total from Investment
Operations 0.340 0.320 0.320
------- ------- -------
Net asset value -
End of period $10.280 $10.260 $10.260
======= ======= =======
Total return (d)(e) 3.42%(f) 3.22%(f) 3.22%(f)
======= ======= =======
RATIOS TO AVERAGE NET ASSETS
Expenses 1.55%(g)(h) 2.30%(g)(h) 2.30%(g)(h)
Fees and expenses waived
or borne by the Adviser 1.55%(g)(h) 1.55%(g)(h) 1.55%(g)(h)
Net investment
income 1.77%(g)(h) 1.02%(g)(h) 1.02%(g)(h)
Portfolio turnover 16%(f) 16%(f) 16%(f)
Average commission rate $ 0.031 $ 0.031 $ 0.031
Net assets at end
of period (000) $ 2,570 $ 257 $ 257
<FN>
(a) Net of fees and expenses waived or borne by the Adviser which amounted to
$ 0.039 $ 0.039 $ 0.039
(b) Per share data was calculated using average shares outstanding during the
period.
(c) The Fund commenced investment operations on March 25, 1996. The activity
shown is from the effective date of registration (March 31, 1996) with the
Securities and Exchange Commission.
(d) Total return at net asset value assuming all distributions reinvested and
no initial sales charge or contingent deferred sales charge.
(e) If the Adviser had not waived or reimbursed a portion of expenses, total
return would have been reducd.
(f) Not annualized.
(g) Annualized.
(h) The benefits derived from custody credits and directed brokerage
arrangements had no impact.
</TABLE>
18
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
T0 THE TRUSTEES OF COLONIAL TRUST VI AND THE SHAREHOLDERS OF
COLONIAL EQUITY INCOME FUND
In our opinion, the accompanying statement of assets and liabilities,
including the investment portfolio, and the related statements of operations and
of changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Colonial Equity Income Fund (a
series of Colonial Trust VI) at June 30, 1996, the results of its operations,
the changes in its net assets and the financial highlights for the period from
March 31, 1996 (effective date of registration) through June 30, 1996, in
conformity with generally accepted accounting principles. These financial
statements and the financial highlights (hereafter referred to as "financial
statements") are the responsibility of the Fund's management; our responsibility
is to express an opinion on these financial statements based on our audit. We
conducted our audit of these financial statements in accordance with generally
accepted auditing standards which require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audit, which included confirmation of portfolio positions at June 30, 1996 by
correspondence with the custodian, provides a reasonable basis for the opinion
expressed above.
PRICE WATERHOUSE LLP
Boston, Massachusetts
August 12, 1996
