<PAGE>
-----------------
COLONIAL U.S.
FUND FOR GROWTH
-----------------
SEMIANNUAL REPORT
DECEMBER 31, 1995
<PAGE>
- --------------------------------------------------------------------------------
COLONIAL U.S. FUND FOR GROWTH HIGHLIGHTS
JULY 1, 1995 - DECEMBER 31, 1995
INVESTMENT OBJECTIVE: Colonial U.S. Fund for Growth seeks growth
exceeding the performance of the Standard & Poor's 500 Index.
STRATEGY: The Fund pursues its objective by investing primarily in U.S.
common stocks.
THE FUND IS DESIGNED TO OFFER:
- Opportunity to outperform the Standard & Poor's 500 Index
- A disciplined investment approach that focuses on both growth and value
investing techniques--for more consistent results
- Access to a top-ranked institutional money manager-- State Street Global
Advisors, the Fund's Sub-Adviser
PORTFOLIO MANAGER COMMENTARY: "Last year's rising stock market continued through
the first half of our Fund's fiscal year. This benefited many of the Fund's
large-capitalization, `blue chip' holdings."
COLONIAL U.S. FUND FOR GROWTH PERFORMANCE
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS D
Inception date 7/1/92 7/1/92 7/1/94
- ------------------------------------------------------------------------------------
<S> <C> <C> <C>
Distributions declared per share $1.145 $1.095 $1.103
- ------------------------------------------------------------------------------------
Six-month total return, assuming
reinvestment of all distributions
and no sales charge or contingent
deferred sales charge (CDSC) 8.73% 8.25% 8.27%
- ------------------------------------------------------------------------------------
Net asset value per share at 12/31/95 $13.29 $13.19 $13.25
</TABLE>
<TABLE>
<CAPTION>
TOP FIVE HOLDINGS BREAKDOWN OF THE TOP FIVE SECTORS**
................................................................................
<S> <C> <C>
1.Exxon Corporation 1. Utilities................... 16%
2.Merck & Company, Inc. 2. Technologies................ 15%
3.PepsiCo, Inc. 3. Financials.................. 14%
4.Bristol-Myers Squibb 4. Health Care................. 11%
5.SBC Communications, Inc. 5. Consumer Staples............ 10%
</TABLE>
**Industry sectors in the following financial statements are based upon the
standard industrial classifications (SIC) published by the U.S. Office of
Management and Budget. The sector classifications used on this page are based
upon Colonial's defined criteria as used in the investment process. Because the
Fund is actively managed, holdings and sectors will change.
- --------------------------------------------------------------------------------
2
<PAGE>
- --------------------------------------------------------------------------------
PRESIDENT'S MESSAGE
TO FUND SHAREHOLDERS
[PHOTO]
As your Fund approaches the middle of its fiscal year, it is a good time to
examine some facts that contributed to memorable performance for most mutual
fund investors.
In general, equity investors were rewarded with unexpectedly strong corporate
earnings that sent the stock market to new highs in 1995. This year is likely to
be a good year as well, although a more modest one.
Conditions in the fixed-income and municipal markets were also favorable. Those
investors who stayed the course through 1994's difficult environment were amply
rewarded.
Falling interest rates and controlled inflation helped the economy to grow at a
comfortable pace -- a positive environment for financial markets. We expect this
rate of growth and low inflation to continue into 1996. It is likely that
further reductions in interest rates will take place in the first half of this
year as the Federal Reserve keeps a watchful eye on inflation.
We do expect some sluggishness in the economy in the first half of the year,
with some pick up in the second half of 1996. This will reflect several factors.
Housing should benefit from lower interest rates and excess inventories of
consumer and manufactured goods should be liquidated. Secondly, the pace of
exports is likely to improve due to anticipated economic growth in Europe and
Japan.
In foreign markets, we continue to find that the Pacific Rim offers the best
combination of value and continued good earnings. In general, foreign markets
lagged the U.S. market last year. In 1996, we could see that gap narrow.
This year, investors will pay close attention to the 1996 Presidential election.
Usually, during an election year, incumbents will try to stimulate economic
growth, although this familiar pattern may be altered by the current budget
controversy.
Please remember that bull markets are a normal part of investing, but so are
bear markets. By leaving your money invested over the long term and following a
regular investment plan, you can avoid the difficulties of trying to predict
short-term market movements.
With this update, I encourage you to read the following report on your Fund. We
appreciate the opportunity to help you meet your investment goals.
Respectfully,
/s/ John A. McNeice, Jr.
John A. McNeice, Jr.
President
February 9, 1996
Because market conditions change frequently, there can be no assurance that the
trends described here will continue, come to pass, or affect the performance of
the Fund.
- --------------------------------------------------------------------------------
3
<PAGE>
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT REPORT
Colonial U.S. Fund for Growth's portfolio is sub-advised by State Street Global
Advisors, a division of State Street Bank and Trust Company (Sub-Adviser).
Investment decisions for the Fund are made by the portfolio team of the
Sub-Adviser.
Q: HOW DID THE FUND PERFORM DURING THE LAST SIX MONTHS?
A: Our Fund performed well during the period, achieving a total return of 8.73%
for Class A shares, based on net asset value. It did, however, underperform the
S&P 500, which had a total return of 14.44% for the six-month period.
Historically, the stock market has moved in cycles -- sometimes favoring
growth-oriented stocks and other times favoring value-oriented stocks. Our
strategy has remained consistent -- we invest in both growth and value stocks to
take advantage of market cycles and help control volatility.
We focus on the underlying value and growth potential of a stock when making
investment decisions. Several stocks within the S&P 500 experienced price
increases driven by the market rather than by their value. While not owning some
of these stocks did hamper the Fund's performance during the period, we believe
that owning stocks with strong underlying value and growth potential has
positioned the Fund to take advantage of opportunities during the new year.
Q: HOW DID YOUR STRATEGY AFFECT THE FUND'S PERFORMANCE?
A: Generally rising U.S. stock market prices benefited most U.S. stocks. Certain
sectors, including technology, finance, and pharmaceuticals, performed
particularly well. Managers who made large bets in these sectors were well
rewarded for their efforts. Our strategy remains sector neutral. Therefore, we
were not heavily weighted in any one sector which would have benefited the
portfolio. However, the strategy did isolate the Fund from some fluctuating
prices, especially in the technology sector.
Q: HOW DOES THE FUND'S STRATEGY HELP REDUCE VOLATILITY IN THE PORTFOLIO?
A: Colonial U.S. Fund for Growth's disciplined sector allocation strategy can
stabilize the Fund's price in times of economic and market uncertainty. The
Fund's investments are designed to mirror the market sector weightings
represented in the S&P 500 Index and cushion the Fund from severe negative
performance.
Q: WHAT IS YOUR OUTLOOK FOR THE REMAINDER OF THE FUND'S FISCAL YEAR?
A: The U.S. stock market continues to look strong for 1996, though we expect
returns in a 9% - 10% range. We will be monitoring several issues for their
impact on market performance including the Federal Reserve Board's position on
interest rates and the budget battle on Capitol Hill.
- --------------------------------------------------------------------------------
4
<PAGE>
COLONIAL U.S. FUND FOR GROWTH INVESTMENT PERFORMANCE VS. THE S&P 500 INDEX
Change in Value of $10,000 from 7/92 - 12/95
Based on Maximum Offering Price (MOP) for Class A Shares
and Applicable Contingent Deferred Sales Charge (CDSC) for Class B Shares
Class A Shares
<TABLE>
<CAPTION>
Measurement Period
(Fiscal Year Covered) MOP NAV S&P 500
<S> <C> <C> <C>
7/1/92 9425 10000 10000
7/31/92 9821 10420 10408.19
8/92 9557 10140 10195.57
9/92 9623 10210 10315.42
10/92 9698 10290 10350.83
11/92 10047 10660 10702.31
12/92 10327 10957 10833.61
1/93 10450 11088 10924.09
2/93 10441 11078 11072.92
3/93 10932 11599 11306.4
4/93 10705 11358 11033.12
5/93 11074 11749 11327.53
6/93 11206 11890 11360.59
7/93 11111 11789 11314.85
8/93 11528 12232 11743.23
9/93 11699 12413 11653.17
10/93 11775 12493 11894.06
11/93 11576 12282 11780.69
12/93 11793 12512 11923.12
1/94 12036 12770 12328.09
2/94 11754 12471 11993.66
3/94 11325 12016 11471.77
4/94 11345 12037 11618.74
5/94 11481 12182 11808.67
6/94 11212 11896 11519.7
7/94 11446 12145 11897.7
8/94 11955 12685 12384.37
9/94 11808 12529 12081.77
10/94 11965 12695 12352.81
11/94 11574 12280 11903.5
12/94 11752 12469 12079.73
1/95 12046 12781 12392.78
2/95 12612 13382 12875.27
3/95 12916 13704 13254.59
4/95 13199 14005 13644.6
5/59 13744 14583 14189.13
6/95 13997 14851 14518.13
7/95 14451 15333 14999.37
8/95 14366 15243 15036.81
9/95 14863 15769 15671.03
10/95 14768 15668 15615.04
11/95 15306 16240 16299.74
12/95 15218 16147 16614
<CAPTION>
Class B Shares
Measurement Period
(Fiscal Year Covered) NAV MOP W/CDSC S&P 500
<S> <C> <C> <C>
7/1/92 10000 10000 10000
7/31/92 10420 10420 10408.19
8/92 10140 10140 10195.57
9/92 10210 10210 10315.42
10/92 10280 10280 10350.83
11/92 10630 10630 10702.31
12/92 10908 10908 10833.61
1/93 11028 11028 10924.09
2/93 11008 11008 11072.92
3/93 11508 11508 11306.4
4/93 11268 11268 11033.12
5/93 11648 11648 11327.53
6/93 11784 11784 11360.59
7/93 11674 11674 11314.85
8/93 12104 12104 11743.23
9/93 12285 12285 11653.17
10/93 12345 12345 11894.06
11/93 12124 12124 11780.69
12/93 12342 12342 11923.12
1/94 12599 12599 12328.09
2/94 12291 12291 11993.66
3/94 11841 11841 11471.77
4/94 11861 11861 11618.74
5/94 11984 11984 11808.67
6/94 11700 11700 11519.7
7/94 11936 11936 11897.7
8/94 12449 12449 12384.37
9/94 12295 12295 12081.77
10/94 12460 12460 12352.81
11/94 12039 12039 11903.5
12/94 12213 12213 12079.73
1/95 12509 12509 12392.78
2/95 13090 13090 12875.27
3/95 13397 13397 13254.59
4/95 13682 13682 13644.6
5/95 14241 14241 14189.13
6/95 14501 14501 14518.13
7/95 14952 14952 14999.37
8/95 14853 14853 15036.81
9/95 15370 15370 15671.03
10/95 15260 15260 15615.04
11/95 15799 15799 16299.74
12/95 15697 15397 16614
</TABLE>
A $10,000 investment in Class D shares made on July 1, 1994 (inception), at the
applicable contingent deferred sales charge would have grown to $13,292 on
December 31, 1995.
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS AS OF 12/31/95 (MOST RECENT QUARTER END)
- ----------------------------------------------------------------------------
CLASS A SHARES CLASS B SHARES CLASS D SHARES
Inception 7/1/92 Inception 7/1/92 Inception 7/1/94
NAV MOP NAV w/CDSC NAV w/CDSC
- ----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1 YEAR 29.49% 22.05% 28.53% 23.53% 28.64% 26.35%
- ----------------------------------------------------------------------------
SINCE INCEPTION 14.65% 12.73% 13.73% 13.11% 21.64% 20.83%
- ----------------------------------------------------------------------------
</TABLE>
The Standard & Poor's 500 Index is an unmanaged index that tracks the
performance of 500 widely held common stocks.
Past performance cannot predict future results. Return and value of an
investment will vary, resulting in a gain or loss on sale. All results shown
assume reinvestment of distributions. Net asset value (NAV) return does not
include sales charges or CDSC. MOP return for Class A shares included the
maximum sales charge of 5.75%, and 1.00% for Class D shares. The CDSC return
reflects the maximum sales charge of 5.00% for one year, and 3.00% since
inception for Class B shares and 1.00% for Class D for one year. Performance for
different share classes will vary based on differences in sales charges and fees
associated with each class.
- --------------------------------------------------------------------------------
5
<PAGE>
INVESTMENT PORTFOLIO
DECEMBER 31, 1995 (UNAUDITED, IN THOUSANDS)
<TABLE>
<CAPTION>
COMMON STOCKS - 97.5% SHARES VALUE
- -------------------------------------------------------------------------
<S> <C> <C>
CONSTRUCTION - 0.1%
HEAVY CONSTRUCTION - NON BUILDING CONSTRUCTION
Flour Corp. 5 $ 356
Halliburton Co. 1 61
-------
417
-------
- -------------------------------------------------------------------------
FINANCE, INSURANCE & REAL ESTATE - 13.6%
DEPOSITORY INSTITUTIONS - 8.8%
Banc One Corp. 43 1,638
BankAmerica Corp. 103 6,663
Chemical Banking Corp. 4 229
First Union Corp. 163 9,061
Mellon Bank Corp. 9 478
Nations Bank Corp. 133 9,232
Star Banc Corp. 1 30
Wells Fargo & Co. 40 8,618
Wilmington Trust Corp. 5 142
-------
36,091
-------
INSURANCE CARRIERS - 2.8%
Allstate Corp. 123 5,062
Old Republic International Corp. 94 3,344
Providian Corp. 3 130
Travelers Group, Inc. 46 2,873
-------
11,409
-------
NONDEPOSITORY CREDIT INSTITUTIONS - 0.1%
Beneficial Corp. 11 504
-------
SECURITY BROKERS & DEALERS - 1.9%
A.G. Edwards, Inc. 48 1,151
Bear Stearns Cos, Inc. 345 6,851
Transport Holdings, Inc. (b) (a) 1
-------
8,003
-------
- -------------------------------------------------------------------------
MANUFACTURING - 55.1%
CHEMICALS - 14.6%
Abbott Laboratories 17 714
Bristol-Myers Squibb Co. 134 11,542
Clorox Co. 39 2,772
Eastman Chemical Co. 59 3,682
Ecolab, Inc. 30 885
IMC Global, Inc. 36 1,480
Johnson & Johnson 87 7,441
Merck & Co., Inc. 225 14,767
</TABLE>
6
<PAGE>
Investment Portfolio/December 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Procter & Gamble Co. 88 $ 7,279
Schering-Plough Corp. 159 8,683
Terra Industries, Inc. 50 701
-------
59,946
-------
ELECTRONIC & ELECTRICAL EQUIPMENT - 3.1%
Integrated Device Technology, Inc. (b) 80 1,080
Micron Technology, Inc. 87 3,447
Read-Rite Corp. (b) 121 2,804
Texas Instruments, Inc. 71 3,631
Thomas & Betts Corp. 27 1,977
-------
12,889
-------
FABRICATED METAL - 0.7%
Parker-Hannifin Corp. 27 925
Snap-On, Inc. 46 2,091
-------
3,016
-------
FOOD & KINDRED PRODUCTS - 6.2%
Archer Daniels Midland Co. 165 2,975
Campbell Soup Co. 6 384
Heinz (H.J.) Co. 2 60
Hershey Foods, Corp. 4 247
IBP, Inc. 111 5,616
Lancaster Colony Corp. 27 1,016
PepsiCo, Inc. 207 11,583
Phillip Morris Co., Inc. 37 3,358
-------
25,239
-------
FURNITURE & FIXTURES - 1.1%
Johnson Controls, Inc. 9 598
Leggett & Platt, Inc. 154 3,737
-------
4,335
-------
MACHINERY & COMPUTER EQUIPMENT - 9.4%
Applied Materials, Inc. 203 8,005
Case Corp. 29 1,308
Compaq Computer Corp. (b) 35 1,680
Dell Computer Corp. (b) 224 7,759
Dover Corp. 6 210
Hewlett-Packard Co. 44 3,652
International Business Machines Corp. 66 6,046
Kennametal, Inc. 20 648
Novellus Systems, Inc. (b) 25 1,323
Seagate Technology, Inc. (b) 125 5,923
Storage Technology Corp. (b) 51 1,209
Tecumseh Products Co.,
Class A 20 1,019
-------
38,782
-------
MEASURING & ANALYZING INSTRUMENTS - 3.6%
Emerson Electric Co. 25 2,011
KLA Instruments Corp. (b) 7 172
Litton Industries, Inc. (b) 9 401
</TABLE>
7
<PAGE>
Investment Portfolio/December 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COMMON STOCKS - CONT. SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
MANUFACTURING - CONT.
MEASURING & ANALYZING INSTRUMENTS - CONT.
Millipore Corp. 142 $ 5,823
Raytheon Co. 12 558
Tektronix, Inc. 116 5,684
-------
14,649
-------
MISCELLANEOUS MANUFACTURING - 2.0%
Callaway Golf Co. 215 4,862
Jostens, Inc. (b) 130 3,140
-------
8,002
-------
PAPER & PAPER MILLS - 1.6%
Bowater, Inc. 23 831
Champion International Corp. 140 5,863
-------
6,694
-------
PETROLEUM REFINING - 7.8%
Amoco Corp. 63 4,535
Atlantic Richfield Co. 45 4,928
Exxon Corp. 202 16,217
Mobil Corp. 58 6,496
-------
32,176
-------
PRINTING & PUBLISHING - 1.1%
Tribune Co. 53 3,209
Washington Post Co. 5 1,438
-------
4,647
-------
STONE, CLAY, GLASS & CONCRETE - 2.0%
Owens-Corning Fiberglas Corp. (b) 179 8,051
-------
TRANSPORTATION EQUIPMENT - 1.9%
PACCAR, Inc. 30 1,251
Teledyne, Inc. 76 1,940
Textron, Inc. 69 4,658
-------
7,849
-------
- --------------------------------------------------------------------------------
RETAIL TRADE - 2.5%
APPAREL & ACCESSORY STORES - 1.7%
TJX Companies, Inc. 359 6,780
-------
MISCELLANEOUS RETAIL - 0.6%
Eckerd Corp. (b) 2 85
Rite Aid Corp. 54 1,846
Walgreen Co. 20 589
-------
2,520
-------
RESTAURANTS - 0.2%
Luby's Cafeterias, Inc. 42 945
-------
- --------------------------------------------------------------------------------
SERVICES - 4.2%
BUSINESS SERVICES
BMC Software, Inc. (b) 20 846
Computer Associates International, Inc. 159 9,043
Interpublic Group of Companies., Inc. 130 5,634
</TABLE>
8
<PAGE>
<TABLE>
Investment Portfolio/December 31, 1995
- --------------------------------------------------------------------------------
<S> <C> <C>
Omnicom Group, Inc. 28 $ 1,028
Oracle Systems Corp. (b) 19 784
-------
17,335
-------
- --------------------------------------------------------------------------------
TRANSPORTATION, COMMUNICATION, ELECTRIC,
GAS & SANITARY SERVICES - 21.8%
AIR TRANSPORTATION - 2.7%
Delta Air Lines, Inc. 12 894
Northwest Airlines Corp., Class A (b) 107 5,442
United Air Lines, Inc. (b) 27 4,873
-------
11,209
-------
COMMUNICATIONS - 12.6%
Alltel Corp. 25 729
Ameritech Corp. 175 10,343
BellSouth Corp. 128 5,585
Capital Cities ABC, Inc. 72 8,871
Century Telephone Enterprises, Inc. 102 3,232
Compuware Corp. (b) 22 411
GTE Corp. 21 911
NYNEX Corp. 38 2,057
Southwestern Bell Corp. 188 10,833
Sprint Corp. 222 8,864
-------
51,836
-------
ELECTRIC, GAS & SANITARY SERVICES - 0.0%
Enova Corp. 86 (a)
-------
ELECTRIC SERVICES - 2.5%
Boston Edison Co. 10 289
Central & South West Corp. 182 5,059
Consolidated Edison Co. of New York 22 704
Northern States Power Co. 5 246
Ohio Edison Co. 81 1,908
San Diego Gas & Electric Co. 86 2,045
-------
10,251
-------
GAS SERVICES - 2.9%
Atlanta Gas Light Co. 2 47
Consolidated Natural Gas Co. 96 4,365
Williams Companies, Inc. 172 7,560
-------
11,972
-------
RAILROAD - 0.0%
Illinois Central Corp. 1 38
-------
WATER TRANSPORTATION - 1.1%
Tidewater, Inc. 140 4,401
-------
- --------------------------------------------------------------------------------
WHOLESALE TRADE - 0.2%
NONDURABLE GOODS
Supervalue, Inc. 29 907
-------
TOTAL COMMON STOCKS (cost of $349,972) 400,893
</TABLE>
9
<PAGE>
Investment Portfolio/December 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PREFERRED STOCK - 0.0% SHARES VALUE
---------------------------------------------------------------------------------
<S> <C> <C>
MANUFACTURING - 0.0%
TRANSPORTATION EQUIPMENT
Teledyne, Inc. Series E (cost of $11) 1 $ 11
--------
TOTAL INVESTMENTS - 97.5% (cost of $349,983) 400,904
--------
<CAPTION>
SHORT-TERM OBLIGATIONS - 2.2% PAR
---------------------------------------------------------------------------------
<S> <C> <C>
Repurchase agreement with Bankers Trust
Securities Corp., dated 12/29/95, due 1/02/96
at 5.700% collateralized by U.S. Treasury notes
with various maturities to 2000, market value $6,013
(repurchase proceeds $5,891) $5,887 5,887
Repurchase agreement with Chase Securities,
Inc., dated 12/29/95, due 01/02/96 at 5.500%
collateralized by a U.S. Treasury note
maturing in 1996, market value $3,043
(repurchase proceeds $2,978) 2,976 2,976
--------
TOTAL SHORT-TERM OBLIGATIONS 8,863
--------
OTHER ASSETS & LIABILITIES, NET - 0.3% 1,213
---------------------------------------------------------------------------------
NET ASSETS - 100.0% $410,980
--------
</TABLE>
-----------------------------------------------------------------------------
NOTES TO INVESTMENT PORTFOLIO:
(a) Rounds to less than one.
(b) Non-income producing.
(c) Cost for federal income tax purposes is $349,984.
See notes to financial statements
10
<PAGE>
STATEMENT OF ASSETS & LIABILITIES
DECEMBER 31, 1995 (UNAUDITED)
(in thousands except for per share amounts and footnotes)
<TABLE>
<S> <C> <C>
ASSETS
Investments at value (cost $349,983) $400,904
Short-term obligations 8,863
--------
409,767
Receivable for:
Fund shares sold $ 894
Dividends 627
Interest 4
Deferred organization expense 27
Other 18 1,570
-------- --------
Total Assets 411,337
LIABILITIES
Payable for:
Fund shares repurchased 355
Accrued Deferred Trustees fees 2
--------
Total Liabilities 357
--------
NET ASSETS $410,980
--------
Net asset value & redemption price per share - Class A
($145,264/10,931) $ 13.29
--------
Maximum offering price per share - Class A
($13.29/0.9425) $ 14.10(a)
--------
Net asset value & offering price per share - Class B
($260,137/19,718) $ 13.19(b)
--------
Net asset value per share - Class D
($5,579/421) $ 13.25(b)
--------
Maximum offering price per share - Class D
($13.25/0.9900) $ 13.38
--------
COMPOSITION OF NET ASSETS
Capital paid in $351,951
Undistributed net investment income 234
Accumulated net realized gains 7,874
Net unrealized appreciation 50,921
--------
$410,980
--------
</TABLE>
(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.
See notes to financial statements.
11
<PAGE>
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED DECEMBER 31, 1995
(UNAUDITED)
(in thousands)
<TABLE>
<S> <C> <C>
INVESTMENT INCOME
Dividends $ 4,329
Interest 335
-------
4,664
EXPENSES
Management fee $ 1,530
Service fee 478
Distribution fee - Class B 904
Distribution fee - Class D 16
Transfer agent 561
Bookkeeping fee 72
Trustees fee 12
Custodian fee 10
Audit fee 17
Legal fee 7
Registration fee 31
Reports to shareholders 6
Amortization of deferred
organization expense 9
Other 12 3,665
------- -------
Net Investment Income 999
-------
NET REALIZED & UNREALIZED GAIN ON PORTFOLIO POSITIONS
Net realized gain 26,657
Net unrealized appreciation 2,685
-------
Net Gain 29,342
-------
Net Increase in Net Assets from Operations $30,341
-------
</TABLE>
See notes to financial statements.
12
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
(unaudited)
Six months ended Year ended
(in thousands) December 31 June 30
----------- ---------
INCREASE (DECREASE) IN NET ASSETS 1995 1995
Operations:
<S> <C> <C>
Net investment income $ 999 $ 2,546
Net realized gain 26,657 13,643
Net unrealized appreciation 2,685 47,177
--------- ---------
Net Increase from Operations 30,341 63,366
Distributions:
From net investment income - Class A (605) (1,420)
From net realized gains - Class A (10,934) (6,157)
From net investment income - Class B (185) (1,133)
From net realized gains - Class B (19,658) (10,279)
From net investment income - Class D (7) (16)
From net realized gains - Class D (409) (76)
--------- ---------
(1,457) 44,285
--------- ---------
Fund Share Transactions:
Receipts for shares sold - Class A 19,043 25,072
Value of distributions reinvested - Class A 11,479 7,015
Cost of shares repurchased - Class A (9,063) (21,509)
--------- ---------
21,459 10,578
--------- ---------
Receipts for shares sold - Class B 37,869 53,700
Value of distributions reinvested - Class B 20,468 10,796
Cost of shares repurchased - Class B (15,405) (24,021)
--------- ---------
42,932 40,475
--------- ---------
Receipts for shares sold - Class D 2,304 2,741
Value of distributions reinvested - Class D 424 90
Cost of shares repurchased - Class D (82) (70)
--------- ---------
2,646 2,761
--------- ---------
Net Increase from Fund Share Transactions 67,037 53,814
--------- ---------
Total Increase 65,580 98,099
NET ASSETS
Beginning of period 345,400 247,301
--------- ---------
End of period (including undistributed net
investment income of $234 and $32, respectively) $ 410,980 $ 345,400
--------- ---------
</TABLE>
Continued on next page.
See notes to financial statements.
13
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
(continued)
<TABLE>
<CAPTION>
(unaudited)
Six months ended Year ended
December 31 June 30
--------------- ---------------
1995 1994
--------------- ---------------
<S> <C> <C>
NUMBER OF FUND SHARES
Sold - Class A 1,376 2,049
Issued for distributions reinvested - Class A 850 614
Repurchased - Class A (658) (1,779)
--------------- ---------------
1,568 884
--------------- ---------------
Sold - Class B 2,759 4,431
Issued for distributions reinvested - Class B 1,527 957
Repurchased - Class B (1,127) (2,000)
--------------- ---------------
3,159 3,388
--------------- ---------------
Sold - Class D 167 227
Issued for distributions reinvested - Class D 31 8
Repurchased - Class D (6) (6)
--------------- ---------------
192 229
--------------- ---------------
</TABLE>
See notes to financial statements.
14
<PAGE>
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995 (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, 1995, and the results of its
operations, the changes in 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 objective is to seek growth
exceeding the performance of the Standard & Poor's 500 index of 500 common
stocks. 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 which 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 following is a summary of
significant accounting policies 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.
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, 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 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.
15
<PAGE>
Notes to Financial Statements/December 31, 1995
- --------------------------------------------------------------------------------
NOTE 2. ACCOUNTING POLICIES - CONT.
................................................................................
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 per share applicable to Class B and Class D
shares.
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.
DISTRIBUTIONS TO SHAREHOLDERS: Distributions to shareholders are recorded on the
ex-date.
The 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.
DEFERRED ORGANIZATION EXPENSES: The Fund incurred expenses of $90,095 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 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: 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 Bank and Trust Company (the sub-adviser) furnishes the Fund
with investment management and received an effective fee rate from the Adviser
of 0.40% for the six months ended December 31, 1995.
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
16
<PAGE>
Notes to Financial Statements/December 31, 1995
- --------------------------------------------------------------------------------
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 six months ended December 31, 1995, the Fund has
been advised that the Distributor retained net underwriting discounts of $75,405
on sales of the Fund's Class A shares and received contingent deferred sales
charges (CDSC) of $35,521 and $218 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% annually 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 the
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, 1995, the Fund's operating expenses did
not exceed the 1.25% expense limit.
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
................................................................................
INVESTMENT ACTIVITY: During the six months ended December 31, 1995, purchases
and sales of investments, other than short-term obligations, were $272,869,852
and $233,828,890, respectively.
Unrealized appreciation (depreciation) at December 31, 1995, based on cost of
investments for federal income tax purposes was:
<TABLE>
<S> <C>
Gross unrealized appreciation $ 64,374,340
Gross unrealized depreciation (13,453,857)
----------------
Net unrealized appreciation $ 50,920,483
----------------
</TABLE>
OTHER: The Fund may focus its investments in certain industries, subjecting it
to greater risk than a fund that is more diversified.
17
<PAGE>
FINANCIAL HIGHLIGHTS (a)
Selected data for a share of each class outstanding throughout each period are
as follows:
<TABLE>
<CAPTION>
(unaudited)
Six months ended
December 31 Year ended June 30
------------------------------------------------------- ------------------------------------
1995 1995
Class A Class B Class D Class A Class B Class D (b)
------------ ------------ -------- --------- ------------ --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value -
Beginning of period $ 13.260 $ 13.180 $ 13.240 $ 11.460 $ 11.400 $ 11.460
------------ ------------ -------- --------- ------------ --------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment
income 0.069 0.017 0.017 0.165 0.075 0.074
Net realized and
unrealized gain 1.106 1.088 1.096 2.530 2.513 2.534
------------ ------------ -------- --------- ------------ --------
Total from Investment
Operations 1.175 1.105 1.113 2.695 2.588 2.608
------------ ------------ -------- --------- ------------ --------
LESS DISTRIBUTIONS
DECLARED TO SHAREHOLDERS:
From net investment
income (0.060) (0.010) (0.018) (0.160) (0.073) (0.093)
From net realized
gains (1.085) (1.085) (1.085) (0.735) (0.735) (0.735)
------------ ------------ -------- --------- ------------ --------
Total Distributions
Declared to
Shareholders (1.145) (1.095) (1.103) (0.895) (0.808) (0.828)
------------ ------------ -------- --------- ------------ --------
Net asset value -
End of period $ 13.290 $ 13.190 $ 13.250 $ 13.260 $ 13.180 $ 13.240
------------ ------------ -------- --------- ------------ --------
Total return (e) 8.73%(f) 8.25%(f) 8.27%(f) 24.84% 23.94% 24.01%
------------ ------------ -------- --------- ------------ --------
RATIOS TO AVERAGE NET
ASSETS
Expenses 1.44%(g)(h) 2.19%(g)(h) 2.19%(g)(h) 1.46% 2.21% 2.21%
Net investment
income 1.01%(g)(h) 0.26%(g)(h) 0.26%(g)(h) 1.37% 0.62% 0.62%
Portfolio turnover 123%(h) 123%(h) 126%(h) 84% 84% 84%
Net assets at end
of period (000) $ 145,264 $ 260,137 $ 5,579 $ 124,171 $ 218,201 $ 3,028
</TABLE>
(a) Per share data was calculated using average shares outstanding during the
period.
(b) Class D shares were initially offered on July 1, 1994. Per share amounts
reflect activity from that date.
(c) The Fund commenced investment operations July 1, 1992.
(d) Net of fees and expenses waived or borne by the Adviser which amounted to
$0.001 and $0.001, respectively.
(e) Total return at net asset value assuming all distributions reinvested and no
initial sales charge or contingent deferred sales charge.
(f) Not annualized.
(g) The benefits derived from custody credits and directed brokerage
arrangements had no impact. Prior year ratios are net of benefits received,
if any.
(h) Annualized.
(i) Net of fees waived by the Adviser which amounted to 0.01%.
18
<PAGE>
FINANCIAL HIGHLIGHTS (a) - CONTINUED
<TABLE>
<CAPTION>
Year ended June 30
-------------------------------------------------------------
1994 1993(c)
Class A Class B Class A Class B
------------ ------------ ------------ ------------
<S> <C> <C> <C>
$ 11.820 $ 11.770 $ 10.000 $ 10.000
------------ ------------ ------------ ------------
0.142 0.053 0.103(d) 0.020(d)
(0.119) (0.122) 1.784 1.763
------------ ------------ ------------ ------------
0.023 (0.069) 1.887 1.783
------------ ------------ ------------ ------------
(0.138) (0.056) (0.067) (0.013)
(0.245) (0.245) -- --
------------ ------------ ------------ ------------
(0.383) (0.301) (0.067) (0.013)
------------ ------------ ------------ ------------
$ 11.460 $ 11.400 $ 11.820 $ 11.770
------------ ------------ ------------ ------------
0.05% (0.71)% 18.90%(f) 17.84%(f)
------------ ------------ ------------ ------------
1.49% 0.24% 1.50%(i) 2.25%(i)
1.19% 0.44% 0.93%(i) 0.18%(i)
117% 117% 98% 98%
$ 97,180 $ 150,121 $ 44,009 $ 89,737
</TABLE>
19
<PAGE>
SHAREHOLDER SERVICES
to Make Investing Easier
Colonial has one of the most extensive selections of shareholder services
available. Your financial adviser can help you arrange for any of these
services, or you can call Colonial directly at 1-800-345-6611.
AFFORDABLE ADDITIONAL INVESTMENTS: Add to your account with as little as $50;
$25 for an IRA account.
FREE EXCHANGES*: Exchange all or part of your account into the same share class
of another Colonial fund, by phone or mail, as your needs change over time.
EASY ACCESS TO YOUR MONEY*: Make withdrawals from your account by phone, by mail
or, for certain funds, by check.
ONE-YEAR REINSTATEMENT PRIVILEGE: If you need access to your money, but then
choose to return it to Colonial within one year, you can reinvest in any
Colonial fund of the same share class without any penalty or sales charge.
FUNDAMATIC: Make periodic investments as low as $50 from your checking account
to your Colonial account.
SYSTEMATIC WITHDRAWAL PLAN (SWP): Receive monthly, quarterly, or semiannual
payments via check or bank transmission. There is a $5,000 account value
required, but no minimum for the payment amount. The maximum annual withdrawal
is 12% of account balance at time SWP is established. SWPs by check are
processed on the 10th of each month.
AUTOMATED DOLLAR COST AVERAGING: Transfer money on a monthly basis from any
Colonial fund with a balance of $5,000 into the same share class of up to four
other Colonial funds. Minimum for each transfer is $100.
LOW COST IRAs: Choose from a broad range of retirement plans, including IRAs.
* Redemptions and exchanges are made at the next determined net asset value
after the request is received by Colonial. Proceeds may be more or less than
your original cost. The exchange privilege may be terminated at any time.
Investors who purchase Class B or Class D shares (for applicable funds), or $1
million or more of Class A shares, may be subject to a contingent deferred sales
charge.
20
<PAGE>
HOW TO REACH COLONIAL
by Phone or by Mail
BY TELEPHONE
COLONIAL CUSTOMER CONNECTION - 1-800-345-6611
For 24-hour account information, call from your touch-tone phone. (Rotary
callers will be automatically connected to a representative during business
hours.) A recorded message will guide you through the menu:
<TABLE>
<S> <C>
For fund prices, dividends, and capital gains information......... press 1
For account information........................................... press 2
To speak to a Colonial representative............................. press 3
For yield and total return information............................ press 4
For duplicate statements or new supply of checks.................. press 5
To order duplicate tax forms and year-end statements.............. press 6
(February through May)
To review your options at any time during your call............... press *
</TABLE>
To speak with a shareholder services representative about your account, call
Monday to Friday, 8:00 am to 8:00 pm ET, and Saturdays from February through
mid-April, 10:00 am to 2:00 pm ET.
COLONIAL TELEPHONE TRANSACTION DEPARTMENT - 1-800-422-3737
To purchase, exchange, or sell shares by telephone, call Monday to Friday, 9:00
am to 8:00 pm ET. Transactions received after the close of the New York Stock
Exchange will receive the next business day's closing price.
COLONIAL LITERATURE DEPARTMENT - 1-800-248-2828
To request literature on any Colonial fund, call Monday to Friday, 8:30 am to
6:30 pm ET.
BY MAIL
COLONIAL INVESTORS SERVICE CENTER, INC.
P.O. BOX 1722
BOSTON, MA 02105-1722
21
<PAGE>
SHAREHOLDER COMMUNICATIONS
TO KEEP YOU INFORMED
To make recordkeeping easy and keep you up-to-date on the performance of your
investments, you can expect to receive the following information about your
Colonial account:
TRANSACTION CONFIRMATIONS: Each time you make a purchase, sale, or exchange,
you receive a confirmation statement within just a few days.
QUARTERLY STATEMENTS: Every three months, if any transactions are made that
affect your share balance, this statement reports on your account activity
during the quarter (including any reinvestment of dividends). This statement
also provides year-to-date information.
COLONIAL SHAREHOLDER NEWS: Mailed with your quarterly account statements, this
newsletter highlights timely investment strategies, portfolio manager
commentary, and shareholder service updates.
TAX FORMS AND YEAR-END TAX GUIDE: Easy-to-use forms and timely information are
designed to make tax reporting simpler. (Usually mailed in January.)
AVERAGE COST BASIS STATEMENTS: If you sold or exchanged shares during the year,
this statement may help you calculate your gain/loss for tax purposes. (Usually
mailed in February.)
22
<PAGE>
IMPORTANT INFORMATION ABOUT THIS REPORT
The Transfer Agent for Colonial U.S. Fund for Growth is:
Colonial Investors Service Center, Inc.
P.O. Box 1722
Boston, MA 02105-1722
1-800-345-6611
Colonial U.S. Fund for Growth mails one shareholder report to each shareholder
address. If you would like more than one report, please call our Literature
Department at 1-800-248-2828 and additional reports will be sent to you.
This report has been prepared for shareholders of Colonial U.S. Fund for Growth.
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 Fund.
23
<PAGE>
[COLONIAL MUTUAL FUNDS LOGO]
Mutual Funds for
Planned Portfolios
- --------------------------------------------------------------------------------
TRUSTEES
ROBERT J. BIRNBAUM
Trustee (formerly Special Counsel, Dechert, Price & Rhoads; President and Chief
Operating Officer, New York Stock Exchange, Inc.)
TOM BLEASDALE
Trustee (formerly Chairman of the Board and Chief Executive Officer, Shore Bank
& Trust Company)
LORA S. COLLINS
Attorney, Kramer, Levin, Naftalis, Nessen, Kamin & Frankel
JAMES E. GRINNELL
Private Investor (formerly Senior Vice President-Operations, The Rockport
Company)
WILLIAM D. IRELAND, JR.
Trustee (formerly Chairman of the Board, Bank of New England-Worcester)
RICHARD W. LOWRY
Private Investor (formerly Chairman and Chief Executive Officer, U.S. Plywood
Corporation)
WILLIAM E. MAYER
Dean, College of Business and Management, University of Maryland (formerly Dean,
Simon Graduate School of Business, University of Rochester; Chairman and Chief
Executive Officer, C.S. First Boston Merchant Bank; and President and Chief
Executive Officer, The First Boston Corporation)
JAMES L. MOODY, JR.
Chairman of the Board, Hannaford Bros. Co. (formerly Chief Executive Officer,
Hannaford Bros. Co.)
JOHN J. NEUHAUSER
Dean, Boston College School of Management
GEORGE L. SHINN
Financial Consultant (formerly Chairman, Chief Executive Officer and Consultant,
The First Boston Corporation)
ROBERT L. SULLIVAN
Management Consultant (formerly Management Consultant, Saatchi and Saatchi
Consulting Ltd. and Principal and International Practice Director, Management
Consulting, Peat Marwick Main & Co.)
SINCLAIR WEEKS, JR.
Chairman of the Board, Reed & Barton Corporation
Not FDIC- May lose value
Insured No bank guarantee
COLONIAL INVESTMENT SERVICES, INC., Distributor (C) 1996
One Financial Center, Boston, Massachusetts 02111-2621, 617-426-3750
US-03/688B-1295 (2/96)
- --------------------------------------------------------------------------------
