<PAGE>
<TABLE>
INVESTMENT PORTFOLIO
JUNE 30, 1996 (IN THOUSANDS)
<CAPTION>
COMMON STOCKS - 84.7% SHARES VALUE
================================================================================
<S> <C> <C>
AGRICULTURE, FORESTRY & FISHING - 0.5%
AGRICULTURAL SERVICES - 0.5%
Veterinary Centers of America, Inc. (a) 1 $ 18
----
- --------------------------------------------------------------------------------
FINANCE, INSURANCE & REAL ESTATE - 7.3%
INSURANCE CARRIERS - 2.1%
Healthsource, Inc. (a) 1 16
Loews Corp. 1 39
Oxford Health Plans, Inc. (a) (b) 17
----
72
----
NONDEPOSITORY CREDIT INSTITUTIONS - 5.2%
Aames Financial Corp. 3 119
Green Tree Financial Corp. 2 56
----
175
----
- --------------------------------------------------------------------------------
MANUFACTURING - 21.3%
APPAREL - 0.5%
Gymboree Corp. (a) 1 18
----
CHEMICALS & ALLIED PRODUCTS - 2.5%
Alpharma, Inc., Class A (b) 6
Dura Pharmaceuticals, Inc. (a) 1 39
Genzyme Corp. (a) 1 25
Nature's Sunshine Products, Inc. 1 13
----
83
----
ELECTRONIC & ELECTRICAL EQUIPMENT - 2.2%
Checkpoint Systems, Inc. (a) (b) 4
Colonial Data Technologies Corp. (a) (b) 6
HADCO Corp. (a) 1 15
Komag, Inc. (a) 2 50
----
75
----
MACHINERY & COMPUTER EQUIPMENT - 6.3%
Applied Materials, Inc. (a) (b) 12
Bay Networks, Inc. (a) (b) 8
Cisco Systems, Inc. (a) 2 96
Gateway 2000, Inc. (a) 1 20
Mylex Corp. (a) (b) 4
Silicon Valley Group, Inc. (a) 3 47
Symbol Technologies, Inc. (a) 1 27
----
214
----
</TABLE>
<PAGE>
<TABLE>
Investment Portfolio/June 30, 1996
- --------------------------------------------------------------------------------
<S> <C> <C>
MEASURING & ANALYZING INSTRUMENTS - 6.1%
Advanced Technology Laboratories, Inc. (a) 3 $102
Boston Scientific Corp. (a) 2 68
Diagnostic Products Corp. (b) 15
Mentor Corp. 1 23
----
208
----
PRIMARY METAL - 1.0%
Texas Industries, Inc. 1 34
----
PRINTING & PUBLISHING - 0.6%
Harte-Hanks Communications 1 19
----
RUBBER & PLASTIC - 2.1%
Nike, Inc., Class B 1 72
----
- --------------------------------------------------------------------------------
RETAIL TRADE - 9.2%
APPAREL & ACCESSORY STORES - 2.9%
St. John Knits, Inc. 2 98
----
FOOD STORES - 1.5%
General Nutrition Companies, Inc. (a) 3 52
----
HOME FURNISHINGS & EQUIPMENT - 3.0%
CompUSA, Inc. (a) 3 102
----
MISCELLANEOUS RETAIL - 1.3%
Bed Bath & Beyond, Inc. (a) 2 43
----
RESTAURANTS - 0.5%
Foodmaker, Inc. (a) 2 17
----
- --------------------------------------------------------------------------------
SERVICES - 39.0%
AMUSEMENT & RECREATION - 4.0%
Grand Casinos, Inc. (a) 2 49
Mirage Resorts, Inc. (a) 2 86
----
135
----
BUSINESS SERVICES - 23.4%
American Management Systems, Inc. (a) 3 85
Cadence Design Systems, Inc. (a) 1 41
Cognex Corp. (a) 1 10
Cognos, Inc. (a) 2 41
HBO & Co. 2 108
Integrated Systems, Inc. (a) 1 24
Manpower, Inc. (b) 16
McAfee Associates, Inc. (a) 1 66
Microsoft Corp. (a) 1 84
National Data Corp. 2 51
</TABLE>
<PAGE>
<TABLE>
Investment Portfolio/June 30, 1996
- --------------------------------------------------------------------------------
<CAPTION>
COMMON STOCKS - CONT. SHARES VALUE
================================================================================
<S> <C> <C>
SERVICES - cont.
BUSINESS SERVICES - CONT.
Oracle Systems Corp. (a) 2 $ 89
Paychex, Inc. 1 29
Peoplesoft, Inc. (a) 1 100
Robert Half International, Inc. (a) 2 50
------
794
------
ENGINEERING, ACCOUNTING, RESEARCH & MANAGEMENT - 4.8%
CDI Corp. (a) 3 91
Corrections Corp. of America (a) 1 70
------
161
------
HEALTH SERVICES - 3.1%
Caremark International, Inc. 1 18
Concord EFS, Inc. (a) (b) 11
Mariner Health Group, Inc. (a) 1 17
PHP Healthcare Corp. (a) (b) 9
PhyCor, Inc. (a) 1 51
------
106
------
HOTELS, CAMPS & LODGING - 3.7%
Bally Entertainment Corp. (a) 1 22
Hospitality Franchise Systems, Inc., (a) 2 105
------
127
------
- --------------------------------------------------------------------------------
TRANSPORTATION, COMMUNICATION, ELECTRIC,
GAS & SANITARY SERVICES - 6.1%
COMMUNICATIONS - 2.2%
Infinity Broadcasting Corp., Class A (a) 3 76
------
ELECTRIC, GAS & SANITARY SERVICES - 1.3%
Newpark Resources, Inc. (a) 1 18
USA Waste Services, Inc. (a) 1 18
United Waste Systems, Inc. (a) (b) 7
------
43
------
WATER TRANSPORTATION - 2.6%
Tidewater, Inc. 2 88
------
- --------------------------------------------------------------------------------
WHOLESALE TRADE - 1.3%
DURABLE GOODS - 1.3%
BEC Group, Inc. (a) 1 4
Rexel, Inc. (a) 1 17
West Marine, Inc. (a) (b) 21
------
42
------
TOTAL INVESTMENTS - 84.7% (COST $2,478)(c) 2,872
------
</TABLE>
<PAGE>
<TABLE>
Investment Portfolio/June 30, 1996
- --------------------------------------------------------------------------------
<CAPTION>
SHORT-TERM OBLIGATIONS - 13.8% PAR VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
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 $477
(repurchase proceeds $467) $467 $ 467
------
OTHER ASSETS & LIABILITIES, NET - 1.5% 51
- --------------------------------------------------------------------------------
NET ASSETS - 100.0% $3,390
======
NOTES TO INVESTMENT PORTFOLIO:
- --------------------------------------------------------------------------------
(a) Non-income producing.
(b) Rounds to less than one.
(c) Cost for federal income tax purposes is the same.
</TABLE>
See notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF ASSETS & LIABILITIES
JUNE 30, 1996
(in thousands except for per share amounts and footnotes)
<S> <C> <C>
ASSETS
Investments at value (cost $2,478) $2,872
Short-term obligations 467
------
3,339
Expense reimbursement
due from Adviser $ 2
Deferred organization expenses 51 53
--- ------
Total Assets 3,392
LIABILITIES
Accrued other 2
---
Total Liabilities 2
------
NET ASSETS $3,390
======
Net asset value & redemption price per share -
Class A ($2,826/250) $11.30
======
Maximum offering price per share - Class A
($11.30/0.9425) $11.99(a)
======
Net asset value & offering price per share -
Class B ($282/25) $11.28(b)
======
Net asset value & redemption price per share -
Class D ($282/25) $11.28(b)
======
Maximum offering price per share - Class D
($11.28/0.9900) $11.39
======
COMPOSITION OF NET ASSETS
Capital paid in $2,994
Undistributed net investment income 2
Net unrealized appreciation 394
------
$3,390
======
<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.
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
FOR THE PERIOD ENDED JUNE 30, 1996 (a)
<S> <C> <C>
(in thousands)
INVESTMENT INCOME
Interest $ 7
Dividends 1
----
Total investment income 8
EXPENSES
Management fee $ 7
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 2
Other (b)
----
25
Fees and expenses waived or
borne by the Adviser (11) 14
---- ----
Net Investment Loss (6)
----
NET REALIZED & UNREALIZED GAIN (LOSS) ON PORTFOLIO POSITIONS
Net realized loss (b)
Net unrealized appreciation during
the period 364
----
Net Gain 364
----
Net Increase in Net Assets from Operations $358
====
<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.
<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 loss $ (6)
Net realized loss (b)
Net unrealized appreciation 364
------
Net Increase from Operations 358
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 358
NET ASSETS
Beginning of period 3,032
------
End of period (including undistributed
net investment income of $2) $3,390
======
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.
<PAGE>
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1996
NOTE 1. ACCOUNTING POLICIES
- --------------------------------------------------------------------------------
ORGANIZATION: Colonial Aggressive Growth 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 capital
appreciation. 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.
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 (losses) are based upon the specific identification
method for both financial statement and federal income tax purposes.
<PAGE>
Notes to Financial Statements/June 30, 1996
- --------------------------------------------------------------------------------
NOTE 1. ACCOUNTING POLICIES - CONT.
- --------------------------------------------------------------------------------
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.
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 carryforwards) under income tax regulations.
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.
<PAGE>
Notes to Financial Statements/June 30, 1996
- --------------------------------------------------------------------------------
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 0.85% 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 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.
<PAGE>
Notes to Financial Statements/June 30, 1996
- --------------------------------------------------------------------------------
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
$14,960 and $4,400, respectively.
<TABLE>
Unrealized appreciation (depreciation) at June 30, 1996, based on cost of
investments for both financial statement and federal income tax purposes was
approximately:
<S> <C>
Gross unrealized appreciation $ 497,000
Gross unrealized depreciation (103,000)
---------
Net unrealized appreciation $ 394,000
---------
</TABLE>
OTHER: 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
- --------------------------------------------------------------------------------
<TABLE>
For the period March 25, 1996 through March 31, 1996, the Fund had net
investment income of $2,124 and unrealized appreciation of $30,222. The
following is a summary of capital activity from March 25, 1996 through March 31,
1996.
<CAPTION>
Shares
<S> <C> <C>
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
</TABLE>
<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 $10.110 $10.110 $10.110
======= ======= =======
INCOME FROM INVESTMENT OPERATIONS:
Net investment
loss (a) (0.016) (0.036) (0.036)
Net realized and
unrealized gain 1.206 1.206 1.206
------- ------- -------
Total from Investment
Operations 1.190 1.170 1.170
------- ------- -------
Net asset value -
End of period $11.300 $11.280 $11.280
======= ======= =======
Total return (d)(e) 11.77% (f) 11.57% (f) 11.57% (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 1.38% (g)(h) 1.38% (g)(h) 1.38% (g)(h)
Net investment
loss (0.58)%(g)(h) (1.33)%(g)(h) (1.33)%(g)(h)
Portfolio turnover 0% (f) 0% (f) 0% (f)
Average commission rate $ 0.000 $ 0.000 $ 0.000
Net assets at end
of period (000) $ 2,826 $ 282 $ 282
<FN>
(a) Net of fees and expenses waived or borne by the Adviser which amounted to
$ 0.038 $ 0.038 $ 0.038
(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) Had the Adviser 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>
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE TRUSTEES OF COLONIAL TRUST VI AND THE SHAREHOLDERS OF
COLONIAL AGGRESSIVE GROWTH 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 Aggressive Growth
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
