<PAGE>
<TABLE>
INVESTMENT PORTFOLIO
JUNE 30, 1996 (IN THOUSANDS)
<CAPTION>
COMMON STOCKS - 93.9% COUNTRY SHARES VALUE
- -----------------------------------------------------------------------------
<S> <C> <C> <C>
CONSTRUCTION - 3.8%
BUILDING CONSTRUCTION - 3.3%
Empresas ICA Sociedad Controladora S.A.
de C.V. Mx 4 $ 56
Fujita Corp. Ja 37 172
Koninklijke Volker Stevin NV Ne 1 101
Maeda Corp. Ja 18 179
------
508
------
HEAVY CONSTRUCTION - NON BUILDING CONSTRUCTION - 0.5%
Stork N.V. Ne 3 77
------
- -----------------------------------------------------------------------------
FINANCE, INSURANCE & REAL ESTATE - 22.5%
DEPOSITORY INSTITUTIONS - 5.4%
Australia & New Zealand Banking Group Ltd. Au 17 81
Corporacion Bancaria de Espana SA Sp 4 170
Den Danske Bank De 1 54
Guoco Group Ltd. HK 25 119
Hokkaido Takushoku Bank (a) Ja 70 212
Merita Ltd., Class A (a) Fi 21 44
Westpac Banking Corp. Au 35 153
------
833
------
HOLDING & OTHER INVESTMENT OFFICES - 7.7%
Chile Fund, Inc. (b) 11 260
Korea Fund, Inc. (b) 12 245
New South Africa Fund, Inc. (b) 2 23
Skandia Forsakrings AB Sw 7 185
Thai Fund (b) 10 239
The Malaysia Fund, Inc. (b) 12 232
------
1,184
------
INSURANCE AGENTS & BROKERS - 1.4%
Baloise Holding Ltd. Sz (c) 217
------
INSURANCE CARRIERS - 5.4%
International Nederlanden Groep Ne 9 261
Lloyds Abbey Life PLC UK 22 173
QBE Insurance Group Ltd. Au 16 95
</TABLE>
4
<PAGE>
<TABLE>
<CAPTION>
Investment Portfolio/June 30, 1996
- -----------------------------------------------------------------------------
<S> <C> <C> <C>
Schweizerische Lebensversicherungs und
Rentenanstalt Sz (c) $ 139
Union des Assurances Federales Fr 1 173
------
841
------
NONDEPOSITORY CREDIT INSTITUTIONS - 1.0%
Nippon Shinpan Co. Ja 22 156
------
REAL ESTATE - 1.6%
Cheung Kong (Holdings) Ltd. HK 12 86
New World Development Co. Ltd. HK 35 162
------
248
------
- -----------------------------------------------------------------------------
MANUFACTURING - 38.5%
CHEMICALS & ALLIED PRODUCTS - 9.2%
Christian Dior SA Fr 1 169
Galencia Holding AG Sz (c) 163
Hoechst AG G 7 236
Imperial Chemical Industries PLC UK 11 134
Medeva PLC UK 43 168
Sanofi SA Fr 2 172
Takeda Chemical Industries Ltd. Ja 11 194
Toyo Ink MFG Ja 31 177
------
1,413
------
ELECTRONIC & ELECTRICAL EQUIPMENT - 8.7%
Allgon AB, Class B Sw 10 168
Matsushaita Electric Industrial Co. Ja 10 186
Mitsubishi Electric Corp. Ja 23 160
Philips Electronics NV Ne 4 130
Pioneer Electronics Corp. Ja 9 214
Stanley Electric Co. Ltd. Ja 21 145
TDK Corp. Ja 3 179
Telefonaktiebolaget LM Ericsson,
Class B Sw 7 157
------
1,339
------
FABRICATED METAL - 0.6%
Van Der Horst Ltd. Si 20 94
------
FOOD & KINDRED PRODUCTS - 3.6%
Burns Philip & Co. Ltd. Au 38 71
Fraser & Neave Ltd. Si 14 145
Groupe Danone Fr 1 166
Nestle SA Sz (c) 171
------
553
------
</TABLE>
5
<PAGE>
<TABLE>
Investment Portfolio/June 30, 1996
<CAPTION>
- -----------------------------------------------------------------------------
COMMON STOCKS - CONT. COUNTRY SHARES VALUE
- -----------------------------------------------------------------------------
<S> <C> <C> <C>
MANUFACTURING - CONT.
MACHINERY & COMPUTER EQUIPMENT - 2.7%
Hitachi Ltd. Ja 18 $ 167
Komatsu Ltd. Ja 19 187
Tandberg Data A/S (a) No 6 57
------
411
------
MEASURING & ANALYZING INSTRUMENTS - 1.0%
Fuji Photo Film Co. Ltd. Ja 5 158
------
PETROLEUM REFINING - 1.1%
British Petroleum Ltd. UK 20 175
------
PRIMARY METAL - 2.0%
ALFA SA de CV Mx 44 199
NKF Holding N.V. (a) Ne 3 103
------
302
------
PRINTING & PUBLISHING - 0.2%
Moore Corp. Ltd. (b) 2 36
------
STONE, CLAY, GLASS & CONCRETE - 1.0%
Holderbank Financiere Glarus-BR Sz (c) 159
------
TEXTILE MILL PRODUCTS - 1.4%
Chargeurs International (a) Fr 1 31
Japan Wool Textile Co. Ja 19 184
------
215
------
TOBACCO PRODUCTS - 2.7%
B.A.T. Industries PLC UK 33 257
Hanson PLC UK 58 162
------
419
------
TRANSPORTATION EQUIPMENT - 4.3%
Mazda Motor (a) Ja 43 214
Toyota Motor Corp. Ja 18 450
------
664
------
- -----------------------------------------------------------------------------
MINING & ENERGY - 2.1%
OIL & GAS EXTRACTION
Brascan Ltd. Ca 9 175
Pioneer International Ltd. Au 54 157
------
332
------
- -----------------------------------------------------------------------------
</TABLE>
6
<PAGE>
<TABLE>
<CAPTION>
Investment Portfolio/June 30, 1996
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
RETAIL TRADE - 2.4%
FOOD STORES - 1.2%
Tesco PLC UK 40 $ 183
------
MISCELLANEOUS RETAIL - 1.2%
Imasco Ltd. Ca 9 180
------
- -------------------------------------------------------------------------------
SERVICES - 3.3%
BUSINESS SERVICES - 1.2%
Securitas AB, Class B Sw 9 188
------
HEALTH SERVICES - 1.0%
Astria AB, Class B Sw 4 157
------
HOTELS, CAMPS & LODGING - 1.1%
Club Mediterrane SA Fr 2 161
------
- -------------------------------------------------------------------------------
TRANSPORTATION, COMMUNICATION, ELECTRIC,
GAS & SANITARY SERVICES - 17.5%
AIR TRANSPORTATION - 0.9%
Lufthansa AG G 1 141
------
COMMUNICATIONS - 5.2%
British Telecommunications PLC UK 32 172
PATHE SA (a) Fr 1 164
Tele Denmark A/S ADR (b) 3 79
Telecom Italia SPA It 106 228
Telefonica de Espana Sp 8 155
------
798
------
ELECTRIC, GAS & SANITARY SERVICES - 1.8%
Hyder PLC UK 14 154
Westcoast Energy, Inc. Ca 9 130
------
284
------
ELECTRIC SERVICES - 3.5%
China Light & Power Co. Ltd. HK 19 86
Hong Kong Electric Holdings Ltd. HK 25 76
Oestereichisch Elektrizitatswirtschafts AG Aus 2 184
Union Electrica Fenosa SA Sp 31 197
------
543
------
GAS SERVICES - 0.5%
Hong Kong & China Gas Co. Ltd. HK 50 80
------
</TABLE>
7
<PAGE>
<TABLE>
Investment Portfolio/June 30, 1996
<CAPTION>
- -------------------------------------------------------------------------------
COMMON STOCKS - CONT. COUNTRY SHARES VALUE
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
TRANSPORTATION, COMMUNICATION, ELECTRIC,
GAS & SANITARY SERVICES - CONT.
Motor Freight & Warehousing - 1.0%
Seino Transportation Ja 10 $ 158
-------
SANITARY SERVICES - 4.6%
Anglian Water PLC UK 19 174
Severn Trent Water PLC UK 18 152
Southern Water PLC UK 15 233
United Utilities PLC UK 17 144
-------
703
-------
- -------------------------------------------------------------------------------
WHOLESALE TRADE - 3.8%
DURABLE GOODS - 2.9%
CSR Ltd. Au 25 87
First Pacific Co. Ltd. HK 118 181
Ryosan Co. Ja 7 181
-------
449
-------
NONDURABLE GOODS - 0.9%
NV Koninklijke KNP BT Ne 6 144
-------
TOTAL COMMON STOCKS (cost of $14,127) 14,503
-------
WARRANTS - 0.0%
- -------------------------------------------------------------------------------
Gas Services
Hong Kong & China Gas Co.Ltd.
(cost rounds to less than one) HK 4 1
-------
TOTAL INVESTMENTS - 93.9% (cost of $14,127)(d) 14,504
-------
SHORT-TERM OBLIGATIONS - 5.3% PAR
- -------------------------------------------------------------------------------
Repurchase agreement with Chase Securities, Inc.,
dated 06/28/96, due 07/01/96 at 5.400%
collateralized by U.S. Treasury notes with
various maturities to 1998, market value
$839 (repurchase proceeds $821) $ 821 821
-------
OTHER ASSETS & LIABILITIES, NET - 0.8% 118
- -------------------------------------------------------------------------------
NET ASSETS - 100.0% $15,443
-------
</TABLE>
8
<PAGE>
<TABLE>
Investment Portfolio/June 30, 1996
- -----------------------------------------------------------------------------
NOTES TO INVESTMENT PORTFOLIO:
- -----------------------------------------------------------------------------
(a) Non-income producing.
(b) This security is subject to the risks of the various countries in which the
issuer is investing. (See Notes to Financial Statements: Note 3 - Other.)
(c) Rounds to less than one.
(d) Cost for federal income tax purposes is the same.
<CAPTION>
Summary of Securities
by Country Country Value % of Total
- -----------------------------------------------------------------------------
<S> <C> <C> <C>
Japan Ja $ 3,673 25.3
United Kingdom UK 2,281 15.7
Multi-national (b) 1,114 7.7
France Fr 1,036 7.1
Sweden Sw 855 5.9
Switzerland Sz 849 5.9
Netherlands Ne 816 5.6
Hong Kong HK 791 5.5
Australia Au 644 4.4
Spain Sp 522 3.6
Canada Ca 485 3.3
Germany G 377 2.6
Mexico Mx 255 1.8
Singapore Si 239 1.6
Italy It 228 1.6
Austria Aus 184 1.3
Norway No 57 0.4
Denmark De 54 0.4
Finland Fi 44 0.3
------- -----
$14,504 100.0
======= =====
</TABLE>
Certain securities are listed by country of underlying exposure but may
trade predominantly on other exchanges.
Acronym Name
------- ----
ADR American Depository Receipt
See notes to financial statements.
9
<PAGE>
<TABLE>
STATEMENT OF ASSETS & LIABILITIES
JUNE 30, 1996
<CAPTION>
(in thousands except for per share amounts and footnotes)
<S> <C> <C>
ASSETS
Investments at value (cost $14,127) $14,504
Short-term obligations 821
-------
15,325
-------
Cash held in foreign banks (cost $5) $ 5
Receivable for:
Dividends 45
Foreign tax reclaims 12
Expense reimbursement due from Adviser 8
Deferred organization expenses 50
Other 2 122
--- -------
Total Assets 15,447
LIABILITIES
Accrued other 4
Total Liabilities --- 4
-------
NET ASSETS $15,443
-------
Net asset value & redemption price per share -
Class A ($14,929/1,450) $ 10.30
-------
Maximum offering price per share - Class A
($10.30/0.9425) $ 10.93(a)
-------
Net asset value & offering price per share -
Class B ($257/25) $ 10.28(b)
-------
Net asset value & redemption price per share -
Class D ($257/25) $ 10.28(b)
-------
Maximum offering price per share - Class D
($10.28/0.9900) $ 10.38
-------
COMPOSITION OF NET ASSETS
Capital paid in $14,988
Undistributed net investment income 39
Accumulated net realized gain 39
Net unrealized appreciation 377
-------
$15,443
-------
- ----------
<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 $131
Interest 19
----
Total investment income (net of nonrebatable
foreign taxes withheld at source which
amounted to $18) 150
EXPENSES
Management fee $ 36
Service fee 10
Distribution fee - Class B (b)
Distribution fee - Class D (b)
Transfer agent 10
Bookkeeping fee 7
Custodian fee 8
Legal fee 2
Amortization of deferred
organization expenses 3
---
76
Fees waived by the Adviser (8) 68
--- ----
Net Investment Income 82
----
NET REALIZED & UNREALIZED GAIN (LOSS) ON PORTFOLIO POSITIONS
Net realized gain (loss) on:
Investments 39
Foreign currency transactions (68)
Net Realized Loss --- (29)
Net unrealized appreciation during
the period 500
----
Net Gain 471
----
Net Increase in Net Assets from Operations $553
----
- ----------
<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 (a)
------------
INCREASE (DECREASE) IN NET ASSETS 1996
<S> <C>
Operations:
Net investment income $ 82
Net realized loss (29)
Net unrealized appreciation 500
-------
Net Increase from Operations 553
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 --
-------
Total Increase 553
NET ASSETS
Beginning of period 14,890
-------
End of period (including undistributed
net investment income of $39) $15,443
-------
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 30, 1996
NOTE 1. ACCOUNTING POLICIES
===============================================================================
ORGANIZATION: Colonial International Equity 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
amended, as an open-end, management investment company. The Fund's
objective is to seek total return through a combination of long-term
growth of capital and income. 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
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.
Debt securities generally are valued by a pricing service based upon
market transactions for normal, institutional-size trading units of
similar securities. When management deems it appropriate, an
over-the-counter or exchange bid quotation is used.
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 transactions 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
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.
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 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 $53,332
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 loss carryfowards)
under income tax regulations.
FOREIGN CURRENCY TRANSACTIONS: Net realized and unrealized gains
(losses) on foreign currency transactions includes the fluctuation in exchange
14
<PAGE>
Notes to Financial Statements/June 30, 1996
- --------------------------------------------------------------------------------
rates on gains (losses) between trade and settlement dates on
securities transactions, gains (losses) arising from the disposition
of foreign currency and currency gains (losses) between the accrual
and payment dates on dividends and interest income and foreign
withholding taxes.
The Fund does not distinguish that portion of gains (losses) on
investments which is due to changes in foreign exchange rates from
that which is due to changes in market prices of the investments. Such
fluctuations are included with the net realized and unrealized gains
(losses) on 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 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
15
<PAGE>
Notes to Financial Statements/June 30, 1996
- -------------------------------------------------------------------------------
NOTE 2. FEES AND COMPENSATION PAID TO AFFILIATES - CONT.
===============================================================================
services and office facilities for a monthly fee equal to 0.95%
annually of the Fund's average net assets.
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: 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 andutheafeesgreceived2fromothe 12b-1 plan are used
principally as repaymentctomthehDistributor foruamounts 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 1.50%
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 ended June 30, 1996, purchases
and sales of investments, other than short-term obligations, were
$607,659 and $671,964, respectively.
16
<PAGE>
Notes to Financial Statements/June 30, 1996
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Unrealized appreciation (depreciation) at June 30, 1996, based on cost
of investments for both financial statement and federal income tax
purposes was:
<S> <C>
Gross unrealized appreciation $ 746,526
Gross unrealized depreciation (369,615)
---------
Net unrealized appreciation $ 376,911
=========
</TABLE>
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, Colonial Management Associates, Inc., 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 $12,879 and unrealized depreciation of $122,953.
The following is a summary of capital activity from March 25, 1996
through March 31, 1996.
Shares
Receipts for shares sold - Class A $14,500,000 1,450,000
Receipts for shares sold - Class B $ 2,500,000 25,000
Receipts for shares sold - Class D $ 2,500,000 25,000
17
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS (b)
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 $ 9.930 $ 9.930 $ 9.930
======= ======= =======
INCOME FROM INVESTMENT OPERATIONS:
Net investment
income (a) 0.055 0.035 0.035
Net realized and
unrealized gain 0.315 0.315 0.315
------- ------- -------
Total from Investment
Operations 0.370 0.350 0.350
------- ------- -------
Net asset value -
End of period $10.300 $10.280 $10.280
======= ======= =======
Total return (d)(e) 3.73%(f) 3.52%(f) 3.52%(f)
======= ======= =======
RATIOS TO AVERAGE NET ASSETS
Expenses 1.75%(g)(h) 2.50%(g)(h) 2.50%(g)(h)
Fees and expenses waived
or borne by the Adviser 0.22%(g)(h) 0.22%(g)(h) 0.22%(g)(h)
Net investment
income 2.17%(g)(h) 1.42%(g)(h) 1.42%(g)(h)
Portfolio turnover 4%(f) 4%(f) 4%(f)
Average commission rate $ 0.013 $ 0.013 $ 0.013
Net assets at end
of period (000) $14,929 $ 257 $ 257
<FN>
(a) Net of fees and expenses waived or borne by the Adviser which amounted to:
$ 0.006 $ 0.006 $ 0.006
(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 reduced.
(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
TO THE TRUSTEES OF COLONIAL TRUST VI AND THE SHAREHOLDERS OF
COLONIAL INTERNATIONAL EQUITY 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 International Equity
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
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