<PAGE>
<TABLE>
INVESTMENT PORTFOLIO
DECEMBER 31, 1996 (UNAUDITED, IN THOUSANDS)
<CAPTION>
COMMON STOCKS - 90.7% 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 - 6.5%
INSURANCE CARRIERS - 2.4%
Healthsource, Inc. (a) 1 12
Loews Corp. 1 47
Oxford Health Plans, Inc. (a) (b) 23
------------
82
------------
NONDEPOSITORY CREDIT INSTITUTIONS - 4.1%
Aames Financial Corp. 2 72
Green Tree Financial Corp. 2 70
------------
142
------------
- -------------------------------------------------------------------------
MANUFACTURING - 22.9%
APPAREL - 0.4%
Gymboree Corp. (a) 1 14
------------
CHEMICALS & ALLIED PRODUCTS - 2.4%
Alpharma, Inc., Class A (b) 4
Dura Pharmaceuticals, Inc. (a) 1 47
Genzyme Corp. (a) 1 22
Nature's Sunshine Products, Inc. 1 9
------------
82
------------
ELECTRONIC & ELECTRICAL EQUIPMENT - 3.4%
Checkpoint Systems, Inc. (a) (b) 2
HADCO Corp. (a) (b) 17
Komag, Inc. (a) 2 52
SCI Systems Inc. (a) 1 45
------------
116
------------
MACHINERY & COMPUTER EQUIPMENT - 6.9%
Applied Materials, Inc. (a) (b) 14
Bay Networks, Inc. (a) (b) 7
Cisco Systems, Inc. (a) 2 109
Gateway 2000, Inc. (a) 1 33
Silicon Valley Group, Inc. (a) 3 50
Symbol Technologies, Inc. (a) 1 27
------------
240
------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Investment Portfolio/December 31, 1996
- -------------------------------------------------------------------------
<S> <C> <C>
MEASURING & ANALYZING INSTRUMENTS - 6.2%
Advanced Technology Laboratories, Inc. (a) 3 $ 87
Boston Scientific Corp. (a) 2 90
Diagnostic Products Corp. (b) 10
Mentor Corp. 1 27
------------
214
------------
PRIMARY METAL - 0.7%
Texas Industries, Inc. 1 25
------------
PRINTING & PUBLISHING - 0.5%
Harte-Hanks Communications 1 19
------------
RUBBER & PLASTIC - 2.4%
Nike, Inc., Class 1 84
------------
- -------------------------------------------------------------------------
RETAIL TRADE - 9.5%
APPAREL & ACCESSORY STORES - 2.8%
St. John Knits, 2 96
------------
FOOD STORES - 1.5%
General Nutrition Companies, Inc. (a) 3 51
------------
HOME FURNISHINGS & EQUIPMENT - 3.0%
CompUSA, Inc. (a) 3 103
------------
MISCELLANEOUS RETAIL - 1.7%
Bed Bath & Beyond, Inc. (a) 2 39
Lewis Galoob Toys, Inc. (a) 2 21
------------
- 60
------------
RESTAURANTS - 0.5%
Foodmaker, Inc. (a) 2 18
------------
- -------------------------------------------------------------------------
SERVICES - 41.3%
AMUSEMENT & RECREATION - 2.0%
Mirage Resorts, Inc. (a) 2 69
------------
BUSINESS SERVICES - 28.3%
American Management Systems, Inc. (a) 3 71
Cadence Design Systems, Inc. (a) 1 48
Cognex Corp. (a) 1 11
Cognos, Inc. (a) 2 51
DeVry, Inc. (a) 4 94
HBO & Co. 2 95
Integrated Systems, Inc. (a) 1 16
McAfee Associates, Inc. (a) 1 89
Microsoft Corp. (a) 1 116
National Data Corp. 2 65
</TABLE>
<PAGE>
<TABLE>
Investment Portfolio/December 31, 1996
<CAPTION>
- ---------------------------------------------------------------------------
COMMON STOCKS - CONT. SHARES VALUE
- ---------------------------------------------------------------------------
<S> <C> <C>
SERVICES - cont.
business services - cont.
Oracle Corp. (a) 2 $ 94
Paychex, Inc. 1 31
Peoplesoft, Inc. (a) 3 134
Robert Half International, Inc. (a) 2 62
------------
977
------------
ENGINEERING, ACCOUNTING, RESEARCH & MANAGEMENT - 4.0%
CDI Corp. (a) 3 78
Corrections Corp. of America (a) 2 61
------------
139
------------
HEALTH SERVICES - 3.8%
Concord EFS, Inc. (a) (b) 14
Mariner Health Group, Inc. (a) 1 8
MedPartners, Inc. (a) 1 18
PHP Healthcare Corp. (a) (b) 8
PhyCor, Inc. (a) 1 38
Renal Treatment Centers, Inc. (a) 2 46
------------
132
------------
HOTELS, CAMPS & LODGING - 3.2%
HFS, Inc. (a) 2 90
Hilton Hotels Corp. 1 21
------------
111
------------
- -------------------------------------------------------------------------
TRANSPORTATION, COMMUNICATION, ELECTRIC,
GAS & SANITARY SERVICES - 8.8%
COMMUNICATIONS - 4.9%
Cascade Communications Corp. (a) 2 84
Infinity Broadcasting Corp., Class A (a) 3 86
------------
170
------------
ELECTRIC, GAS & SANITARY SERVICES - 1.3%
Newpark Resources, Inc. (a) 1 19
USA Waste Services, Inc. (a) 1 19
United Waste Systems, Inc. (a) (b) 7
------------
45
------------
WATER TRANSPORTATION - 2.6%
Tidewater, Inc. 2 91
------------
- -------------------------------------------------------------------------
WHOLESALE TRADE - 1.2%
DURABLE GOODS - 1.2%
BEC Group, Inc. (a) 1 4
Rexel, Inc. 1 19
West Marine, Inc. (a) (b) 17
------------
40
------------
</TABLE>
<PAGE>
<TABLE>
Investment Portfolio/December 31, 1996
<CAPTION>
- -------------------------------------------------------------------------
<S> <C> <C>
TOTAL COMMON STOCKS - 90.7% (cost $2,675)(c) $ 3,138
------------
SHORT-TERM OBLIGATIONS - 7.9% PAR VALUE
- -------------------------------------------------------------------------
Repurchase agreement with Lehman Brothers,
Inc., dated 12/31/96, due 01/02/97 at 6.900%
collateralized by U.S. Treasury notes with
various maturities to 2022, market value $277
(repurchase proceeds $273) $ 273 273
------------
OTHER ASSETS & LIABILITIES, NET - 1.4% 50
- -------------------------------------------------------------------------
NET ASSETS - 100.0% $ $3,461
============
NOTES TO INVESTMENT PORTFOLIO:
- -------------------------------------------------------------------------
<FN>
(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>
STATEMENT OF ASSETS & LIABILITIES
DECEMBER 31, 1996 (UNAUDITED)
<CAPTION>
(in thousands except for per share amounts and footnotes)
<S> <C> <C>
ASSETS
Investments at value (cost $2,675) $3,138
Short-term obligations 273
------
3,411
Deferred organization expenses $45
Other 6 51
Total Assets --- ------
3,462
LIABILITIES
Payable to Adviser 1
------
NET ASSETS $3,461
======
Net asset value & redemption price per share -
Class A ($2,887/250) $11.53
======
Maximum offering price per share - Class A
($11.53/0.9425) $12.23 (a)
======
Net asset value & offering price per share -
Class B ($287/25) $11.47 (b)
======
Net asset value & redemption price per share -
Class D ($287/25) $11.47 (b)
======
Maximum offering price per share - Class D
($11.47/0.9900) $11.59
======
COMPOSITION OF NET ASSETS
Captial paid in $2,995
Net investment loss (11)
Net realized gain 14
Net unrealiazed appreciation 463
------
$3,461
======
<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>
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED DECEMBER 31, 1996
(UNAUDITED)
<CAPTION>
(in thousands)
<S> <C> <C>
INVESTMENT INCOME
Interest $ 10
Dividends 2
----
Total investment income 12
EXPENSES
Management fee $ 15
Service fee 4
Distribution fee - Class B 1
Distribution fee - Class D 1
Transfer agent 4
Bookkeeping fee 14
Registration fee (a)
Custodian fee 1
Legal fee 3
Audit fee 7
Trustees fees 2
Amortization of deferred
organization expenses 6
Other 2
----
60
Fees and expenses waived or
borne by the Adviser (31) 29
---- ----
Net Investment Loss (17)
----
NET REALIZED & UNREALIZED GAIN ON PORTFOLIO POSITIONS
Net realized gain 18
Net unrealized appreciation during
the period 69
Net Gain ---- 87
----
Net Increase in Net Assets from Operations $ 70
====
<FN>
(a) Rounds to less than one.
</TABLE>
See notes to financial statements.
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<CAPTION>
(Unaudited)
Six months Period
ended ended
December 31 June 30
(in thousands) ------------ -----------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS 1996 1996(a)
Operations:
Net investment loss $ (17) $ (6)
Net realized gain 18 (b)
Net unrealized appreciation 69 364
------ ------
Net Increase from Operations 70 358
Distributions:
From net investment income-Class A (1) ---
From net realized gains-Class A (4) ---
From net investment income-Class B (b) ---
From net realized gains-Class B (b) ---
From net investment income-Class D (b) ---
From net realized gains-Class D (b) ---
------ ------
65 ---
Fund Share Transactions:
Receipts for shares sold - Class A 5 ---
Receipts for shares sold - Class B (b) ---
Receipts for shares sold - Class D (b) ---
------ ------
Net Increase from Fund Share
Transactions 6 ---
------ ------
Total Increase 71 358
NET ASSETS
Beginning of period 3,390 3,032
------ ------
End of period (including net investment
loss and undistributed net investment
income of $11 and $2, respectively) $3,461 $3,390
====== ======
NUMBER OF FUND SHARES
Sold - Class A (b) ---
------ ------
Sold - Class B (b) ---
------ ------
Sold - Class D (b) ---
------ ------
<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>
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1996 (UNAUDITED)
NOTE 1. INTERIM FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
In the opinion of management of Colonial Aggressive Growth Fund (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, 1996, and the results of its
operations, the changes in its net assets and the financial highlights for the
six months then ended.
NOTE 2. ACCOUNTING POLICIES
- --------------------------------------------------------------------------------
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 investment 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 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/December 31, 1996
- --------------------------------------------------------------------------------
NOTE 2. 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/December 31, 1996
- --------------------------------------------------------------------------------
NOTE 3. 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 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, 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/December 31, 1996
- --------------------------------------------------------------------------------
NOTE 4. PORTFOLIO INFORMATION
- --------------------------------------------------------------------------------
INVESTMENT ACTIVITY: During the six months ended December 31, 1996, purchases
and sales of investments, other than short-term obligations, were $334,978 and
$157,214, respectively.
<TABLE>
Unrealized appreciation (depreciation) at December 31, 1996, based on cost of
investments for both financial statement and federal income tax purposes was:
<S> <C>
Gross unrealized appreciation $ 635,968
Gross unrealized depreciation (172,719)
---------
Net unrealized appreciation $ 463,249
=========
</TABLE>
OTHER: The Fund may focus its investments in certain industries, subjecting it
to greater risk than a fund that is more diversified.
NOTE 5. 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 six months December 31, 1996.
NOTE 6. OTHER RELATED PARTY TRANSACTIONS
- --------------------------------------------------------------------------------
At December 31, 1996, Keyport Life Insurance Company owned 100% of the Fund's
shares outstanding.
NOTE 7. OTHER OPERATIONAL AND CAPITAL ACTIVITY
- --------------------------------------------------------------------------------
<TABLE>
For the period ended 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
Selected data for a share of each class outstanding throughout the period are as follows:
<CAPTION>
(Unaudited)
Six months ended December 31
=========================================
1996
Class A Class B Class D
======= ======= =======
<S> <C> <C> <C>
Net asset value -
Beginning of period $11.300 $11.280 $11.280
======= ======= =======
INCOME FROM INVESTMENT OPERATIONS:
Net investment
loss (a)(b) (0.050) (0.093) (0.093)
Net realized and
unrealized gain (b) 0.300 0.298 0.298
------- ------- -------
Total from Investment
Operations 0.250 0.205 0.205
------- ------- -------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.005) -- --
From net realized gains (0.015) (0.015) (0.015)
------- ------- -------
Total Distributions Declared
to Shareholders (0.020) (0.015) (0.015)
------- ------- -------
Net asset value -
End of period $11.530 $11.470 $11.470
======= ======= =======
Total return (c)(d) 2.21%(e) 1.81%(e) 1.81%(e)
======= ======= =======
RATIOS TO AVERAGE NET ASSETS
Expenses 1.55%(f)(g) 2.30%(f)(g) 2.30%(f)(g)
Fees and expenses waived
or borne by the Adviser 1.80%(f)(g) 1.80%(f)(g) 1.80%(f)(g)
Net investment
loss (0.86)%(f)(g) (1.61)%(f)(g) (1.61)%(f)(g)
Portfolio turnover 5%(e) 5%(e) 5%(e)
Average commission rate $0.0308 $0.0308 $0.0308
Net assets at end
of period (000) $ 2,887 $ 287 $ 287
<FN>
(a) Net of fees and expenses waived or borne by the Adviser which amounted to
$ 0.105 $ 0.105 $ 0.105
(b) Per share data was calculated using average shares outstanding during the period.
(c) Total return at net asset value assuming all distributions reinvested and
no initial sales charge or contingent deferred sales charge.
(d) Had the Adviser not waived or reimbursed a portion of expenses, total return would
have been reduced.
(e) Not annualized.
(f) Annualized.
(g) The benefits derived from custody credits and directed brokerage arrangements had
no impact.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS - CONT.
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 $0.0326 $0.0326 $0.0326
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>
