COLONIAL SMALL CAP VALUE FUND
One Financial Center, Boston, Massachusetts 02111
August 20, 1997
Dear Shareholder:
A Special Meeting of Shareholders (Meeting) of Colonial Small Cap Value
Fund (Fund) will be held at 10 a.m. Eastern time on September 30, 1997, at the
offices of Colonial Management Associates, Inc. (Adviser). Formal notice of the
Meeting appears on the next page, followed by the proxy statement. We hope that
you can attend the Meeting in person; however, we urge you in any event to vote
your shares by completing and returning the enclosed proxy card in the envelope
provided at your earliest convenience.
At the Meeting, you will be asked to consider approval of a new
Management Agreement for the Fund and to ratify the selection of Price
Waterhouse LLP as the Fund's independent accountants for the fiscal year 1998.
After carefully considering each proposal, your Fund's Trustees recommend that
you vote FOR each of the proposals. No changes are being proposed to the way the
Fund is managed, advised or operated.
YOUR VOTE IS IMPORTANT, REGARDLESS OF THE NUMBER OF SHARES YOU OWN.
PLEASE VOTE BY COMPLETING, DATING AND SIGNING THE ENCLOSED PROXY CARD,
REGARDLESS OF THE NUMBER OF SHARES YOU OWN. A SELF-ADDRESSED, POSTAGE-PAID
ENVELOPE HAS BEEN ENCLOSED FOR YOUR CONVENIENCE. IT IS IMPORTANT THAT YOU VOTE
AND THAT YOUR VOTE BE RECEIVED NO LATER THAN SEPTEMBER 29, 1997.
Your Fund is using Shareholder Communications Corporation (SCC), a
professional proxy solicitation firm, to assist shareholders in the voting
process. As the date of the Meeting approaches, if we have not yet received your
proxy card, you may receive a telephone call from SCC reminding you to exercise
your right to vote.
We appreciate your participation and prompt response in this matter,
and thank you for your continued support.
Sincerely,
Harold W. Cogger
President
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COLONIAL SMALL CAP VALUE FUND
One Financial Center, Boston, Massachusetts 02111
(617) 426-3750
NOTICE OF SPECIAL MEETING OF SHAREHOLDERS
TO BE HELD SEPTEMBER 30, 1997
Dear Shareholder:
A Special Meeting of Shareholders (Meeting) of Colonial Small Cap Value
Fund (Fund) will be held at the offices of Colonial Management Associates, Inc.
(Adviser), One Financial Center, Boston, Massachusetts, on Tuesday, September
30, 1997, at 10:00 a.m. Eastern time, to:
1. Approve or disapprove a new Management Agreement for the Fund
providing for an increase in the management fee paid by the Fund;
2. Ratify or reject the selection of independent accountants; and
3. Transact such other business as may properly come before the
Meeting or any adjournment thereof.
By order of the Trustees,
Michael H. Koonce, Secretary
August 20, 1997
NOTICE: YOUR VOTE IS IMPORTANT, REGARDLESS OF THE NUMBER OF SHARES YOU OWN. IF A
QUORUM IS NOT PRESENT AT THE MEETING, ADDITIONAL EXPENSES MAY BE INCURRED TO
SOLICIT ADDITIONAL PROXIES. TO AVOID THESE COSTS TO YOUR FUND, PLEASE VOTE, SIGN
AND RETURN YOUR PROXY IN THE ENCLOSED POSTAGE-PAID ENVELOPE IMMEDIATELY.
SC-85/024E-0897
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PROXY STATEMENT
August 20, 1997
The Trustees of the Fund have called a Special Meeting of the Fund's
shareholders for 10:00 a.m., Tuesday, September 30, 1997 for the purposes
described in the accompanying Notice. The purpose of this Proxy Statement is to
provide you with additional information regarding the proposals to be voted on
at the Meeting and to request your proxy to vote in favor of the proposals. By
properly completing and returning the enclosed proxy card, you will authorize
the individuals named on the card to vote your Fund shares in favor of each
listed proposal and, in their discretion, on any other matter to properly come
before the Meeting. No other matters are contemplated at this time. Additional
information concerning the proxy solicitation and voting process and who is
eligible to vote is set forth below; Sections 1, 2 and 3, respectively, contain
additional information regarding the matters to be voted on at the Meeting.
Voting; Proxies; Shareholders Entitled to Vote.
The enclosed proxy, which was first mailed on August 20, 1997, is
solicited by the Trustees for use at the Meeting. All properly executed proxies
received in time for the Meeting will be voted as specified in the proxy or, if
no specification is made, in favor of each proposal referred to in the Proxy
Statement. The proxy may be revoked prior to its exercise by a later dated
proxy, by written revocation received by the Secretary or by voting in person.
Solicitation may be made by mail, telephone, telegraph, telecopy and personal
interviews. Authorization to execute proxies may be obtained by telephonically
or electronically transmitted instructions. Shareholder Communications
Corporation has been engaged to assist in the solicitation of proxies. The cost
of this assistance is not expected to exceed $66,957. The cost of solicitation
will be paid by the Fund.
Shareholders of record at the close of business on July 14, 1997 will have
one vote for each share held. On such date, the Fund had outstanding
4,510,495.149 Class A, 6,148,765.109 Class B, 290,831.529 Class C and
156,994.782 Class Z shares of beneficial interest. Holders of thirty percent of
the shares outstanding on such date constitute a quorum and must be present in
person or represented by proxy for business to be transacted at the Meeting.
As of July 14, 1997, the following shareholders owned more than 5% of a
class of shares of the Fund:
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Name and Address Number of Shares Owned and Percent of Class
---------------- -------------------------------------------
Class A Class B Class C Class Z
Merrill Lynch, Pierce Fenner & Smith, 238,348 941,724 91,554 -----
Inc., For the Sole Benefit of Its 5.30% 15.36% 32.14%
Customers, 4800 Deer Lake Drive East,
3rd Floor, Jacksonville, FL 32246
The Colonial Group, Inc. Profit ----- ----- ----- 156,764
Sharing Plan, Summary Account, Attn: 99.85%
Christine Wiley, One Financial
Center, Boston, MA 02111
Votes cast by proxy or in person will be counted by persons appointed by
the Fund to act as election tellers for the Meeting. The tellers will count the
total number of votes cast "for" approval of the proposals for purposes of
determining whether sufficient affirmative votes have been cast. Where a
shareholder withholds authority or abstains, or the proxy reflects a "broker
non-vote" (i.e., shares held by brokers or nominees as to which (i) instructions
have not been received from the beneficial owners or persons entitled to vote
and (ii) the broker or nominee does not have discretionary voting power on a
particular matter), the shares will be counted as present and entitled to vote
for purposes of determining the presence of a quorum. With respect to approval
of the new Management Agreement, withheld authority, abstentions and broker
non-votes will have the effect of votes against such proposal; with respect to
the ratification of independent accountants, withheld authority, abstentions and
broker non-votes have no effect on the outcome of the voting.
Further information concerning the Fund is contained in its most recent
Annual and/or Semiannual Reports to shareholders, which are obtainable free of
charge by writing the Adviser at One Financial Center, Boston, MA 02111 or by
calling 1-800-426-3750.
1. Approve or Disapprove a New Management Agreement.
a. Description of Proposal.
The Board of Trustees propose that shareholders approve a new Management
Agreement, in the form set forth in Appendix A, between Colonial Trust VI
(Trust), on behalf of the Fund, and the Adviser. The new Management Agreement is
identical to the existing Management Agreement except for the management fee
payable by the Fund to the Adviser. The existing Management Agreement provides
for a monthly fee at the annual rate of 0.60% of the Fund's average daily net
assets. The new Management
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Agreement provides for a monthly fee at the annual rate of 0.80% of the Fund's
average daily net assets. The Fund paid the Adviser $1,428,454 for the fiscal
year ended June 30, 1997. If the new Management Agreement had been in effect
during the fiscal year ended June 30, 1997, the Fund would have paid the Adviser
a fee of $1,900,310, an increase of 33%.
The following table summarizes the Fund's current transaction expenses and
annual operating expenses for each class of the Fund's shares, based on expenses
incurred in the most recent fiscal year:
Shareholder Transaction Expenses(1)(2)
Class A Class B Class C Class Z
Maximum Initial Sales Charge
Imposed on a Purchase
(as a % of offering
price)(3) 5.75% 0.00%(5) 0.00%(5) 0.00%
Maximum Contingent
Deferred Sales Charge
(as a % of offering
price)(3) 1.00%(4) 5.00% 1.00% 0.00%
(1) For accounts less than $1,000 an annual fee of $10 may be deducted. See
"How to Buy Shares."
(2) Redemption proceeds exceeding $1,000 sent via federal funds wire will be
subject to a $7.50 charge per transaction.
(3) Does not apply to reinvested distributions.
(4) Only with respect to any portion of purchases of $1 million to $5 million
redeemed within approximately 18 months after purchase. See "How to Buy
Shares."
(5) Because of the 0.75% distribution fee applicable to Class B and Class C
shares, long-term Class B and Class C shareholders may pay more in
aggregate sales charges than the maximum initial sales charge permitted
by the National Association of Securities Dealers, Inc. However, because
the Fund's Class B shares automatically convert to Class A shares after
approximately 8 years, this is less likely for Class B shares than for a
class without a conversion feature.
Class A Class B Class C Class Z
Management fee 0.60% 0.60% 0.60% 0.60%
12b-1 fees 0.25 1.00 1.00 0.00
Other expenses 0.47 0.47 0.47 0.47
---- ---- ---- ----
Total operating expenses 1.32% 2.07% 2.07% 1.07%
==== ==== ==== ====
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The following table shows the cumulative expenses attributable to a
hypothetical $1,000 investment in each class of shares of the Fund for the
periods specified, assuming a 5% annual return, and, unless otherwise noted,
redemption at period end:
Class A Class B Class C Class Z
Period: (1) (2) (1) (2)
1 year $ 70 $ 71 $ 21 $ 31 $ 21 $ 11
3 years 97 95 65 65(4) 65(4) 34
5 years 126 131 111 111 111 59
10 years 207 221(3) 221(3) 240 240 131
(1) Assumes redemption at period end.
(2) Assumes no redemption.
(3) Class B shares automatically convert to Class A shares after
approximately 8 years; therefore, years 9 and 10 reflect Class A shares
expenses.
(4) Class C shares do not incur a contingent deferred sales charge on
redemptions made after one year.
Had the new Management Agreement been in effect, the Fund's annual
operating expenses for each class of shares would have been:
Class A Class B Class C Class Z
Management fee 0.80% 0.80% 0.80% 0.80%
12b-1 fees 0.25 1.00 1.00 0.00
Other expenses 0.47 0.47 0.47 0.47
---- ---- ---- ----
Total operating expenses 1.52% 2.27% 2.27% 1.27%
==== ==== ==== ====
The following table shows the cumulative expenses attributable to a
hypothetical $1,000 investment in each class of shares of the Fund for the
periods specified, assuming that the new Management Agreement was in effect and
assuming a 5% annual return, and, unless otherwise noted, redemption at period
end:
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Class A Class B Class C Class Z
Period: (1) (2) (1) (2)
1 year $ 72 $ 73 $ 23 $ 33 $ 23 $ 13
3 years 103 101 71 71(4) 71(4) 40
5 years 136 142 122 122 122 70
10 years 228 242(3) 242(3) 261 261 153
(1) Assumes redemption at period end.
(2) Assumes no redemption.
(3) Class B shares automatically convert to Class A shares after
approximately 8 years; therefore, years 9 and 10 reflect Class A shares
expenses.
(4) Class C shares do not incur a contingent deferred sales charge on
redemptions made after one year.
b. Consideration by the Board of Trustees.
The Advisory Fees and Expenses Committee (Committee) of the Board of
Trustees met on May 16, 1997 to consider, among other things, the new management
fee proposed by the Adviser. The Adviser stated that the Fund had performed well
relative to funds in the Lipper Analytical Services, Inc. ("Lipper") small
company equity fund category. The Adviser suggested that the reasonableness of
the proposed fee be considered in light of the Fund's performance.
The Adviser stated further that the Fund's current management fee is
significantly below the median fee among a group of comparable U.S. small
capitalization equity funds similar in size to the Fund, and that had the
proposed fee been in effect, the Fund's fee would still have been below such
median. The Adviser also provided the Committee with other information including
but not limited to information concerning the Adviser's investment, sales,
marketing and administrative support personnel, the benefits, including revenue
and net income, derived by the Adviser from managing the Fund under the current
fee, and other information requested by the Committee. The Committee considered
all of the information provided by the Adviser, along with the nature, quality
and scope of the services provided to the Fund by the Adviser, and determined to
recommend to the full Board of Trustees that the proposed change in the
management fee be approved.
The full Board of Trustees met on June 20, 1997 to consider, among other
things, the proposed management fee change. The Adviser reviewed the proposal
with the full Board of Trustees at the meeting, and provided the Board of
Trustees with the same data and other information supplied to the Committee
along with additional information. The
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Board of Trustees also was provided with the Committee's recommendation and the
reasons therefor. Based on the information provided to the Board of Trustees,
particularly information concerning the general level of fees and expenses among
comparable funds and the Fund's performance relative to other funds in its
category, the Board of Trustees unanimously approved the new management fee.
c. Trustees and Officers and Other Information.
The following table sets forth certain information about the Board of
Trustees of the Fund:
Name Trustee Shares Beneficially Owned Percentage of Fund
(Age) Since of Fund at July 14, 1997(1) Shares Owned
- - ---- ----- --------------------------- ------------
Robert J. Birnbaum ---- ----
(69) 1995
Tom Bleasdale ---- ----
(67) 1991
Lora S. Collins 2,234.453 (2)
(61) 1991
James E. Grinnell ---- ----
(67) 1995
William D. Ireland, Jr. ---- ----
(73) 1991
Richard W. Lowry ---- ----
(61) 1995
William E. Mayer (3) ---- ----
(57) 1994
James L. Moody, Jr. ---- ----
(65) 1991
John J. Neuhauser 902.297 (2)
(54) 1991
George L. Shinn ---- ----
(74) 1991
Robert L. Sullivan ---- ----
(69) 1991
Sinclair Weeks, Jr. 936.822 (2)
(74) 1991
Trustees and officers as a 160,894.422(4) 1.45%
group
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(1) Except as otherwise noted, each Trustees has sole investment power and sole
voting power with respect to his or her shares of the Fund.
(2) Ownership is less than 1%.
(3) Mr. Mayer is an "interested person," as defined in the Investment Company
Act of 1940 (1940 Act), because of his affiliation with Hambrecht & Quist
Incorporated (a registered broker-dealer).
(4) Arthur O. Stern, who is a former officer of the Trust, held 156,764.190
shares of the Fund, representing 99.85% of the then outstanding Class Z
shares. This holding consisted entirely of shares held by him and certain
employees of the Adviser as co-Trustees of The Colonial Group, Inc.
Profit-Sharing Plan with respect to which they share investment and voting
power. Mr. Stern previously served as Secretary of the Fund from 1985 to
1997.
The following table sets forth certain information about the executive
officers of the Fund:
Shares
Beneficially
Executive Owned and
Name Officer Percent of Fund
(Age) Since Office with Fund (1)(2) at July 14, 1997
- - ----- ----- ------------------------ ----------------
Harold W. Cogger President ----
(61) 1996
Davey S. Scoon Vice President ----
(50) 1993
Timothy J. Jacoby Treasurer and Chief ----
(45) 1996 Financial Officer
Peter L. Lydecker Controller and Chief ----
(43) 1993 Accounting Officer
Michael H. Koonce Secretary 56.660 (3)
(37) 1997
(1) Except as otherwise noted, each individual has held the office indicated or
other offices in the same company for the last five years.
(2) The Fund's executive officers may benefit from the proposal to increase the
management fee, in their capacity as officers, directors or shareholders of
the Adviser and its affiliates.
(3) Ownership is less than 1%.
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d. Information Concerning the Adviser and its Affiliates.
The Adviser acts as investment adviser to the Fund under the existing
Management Agreement dated March 27, 1995, which was approved by the
shareholders on February 15, 1995, in connection with the merger of The Colonial
Group, Inc. and Liberty Financial Companies, Inc. (Liberty Financial). The
Adviser is a wholly-owned subsidiary of TCG, One Financial Center, Boston,
Massachusetts 02111, which in turn is a wholly-owned subsidiary of Liberty
Financial. Liberty Financial is an indirect subsidiary of Liberty Mutual
Insurance Company (Liberty Mutual). Liberty Financial is a diversified and
integrated asset management organization which provides insurance and investment
products to individuals and institutions. Its principal executive offices are
located at 600 Atlantic Avenue, 24th Floor, Boston, Massachusetts 02210. Liberty
Mutual is an underwriter of workers' compensation insurance and a
Massachusetts-chartered mutual property and casualty insurance company. The
principal business activities of Liberty Mutual's subsidiaries other than
Liberty Financial are property-casualty insurance, insurance services and life
insurance (including group life and health insurance products) marketed through
its own sales force. Liberty Mutual's principal executive offices are located at
175 Berkeley Street, Boston, Massachusetts 02117. Liberty Mutual is deemed to be
the controlling entity of the Adviser and its affiliates.
The directors of the Adviser are Bonny E. Boatman, Sheila A. Carroll,
Harold W. Cogger, Carl C. Ericson, C. Frazier Evans, Stephen E. Gibson, Donald
S. MacKinnon, Helen Frame Peters, Daniel Rie, Davey S. Scoon and Arthur O.
Stern. Mr. Gibson is the principal executive officer of the Adviser. The
principal occupations of the Adviser's directors are as officers and directors
of the Adviser and certain of its affiliates. The address of the directors and
officers of the Adviser is One Financial Center, Boston, Massachusetts 02111.
The Adviser's compensation under the existing and new Management
Agreements is subject to reduction to the extent that in any year the expenses
of the Fund exceed the limits on investment company expenses imposed by any
statute or regulatory authority of any jurisdiction in which shares of the Fund
are qualified for offer and sale. No such limits are currently in effect.
The existing and new Management Agreements provide that, subject to the
Board of Trustees' supervision, the Adviser will manage the assets of the Fund
in accordance with its Prospectus and Statement of Additional Information,
purchase and sell securities and other investments on behalf of the Fund and
report results to the Board of Trustees periodically. The existing and new
Management Agreements also require the Adviser to furnish, at its expense (a)
office space, supplies, facilities and equipment; (b) executive and other
personnel for managing the affairs of the Fund (excluding custodial, transfer
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agency, pricing and certain record keeping services); and (c) compensation to
Trustees who are directors, officers of employees or the Adviser or its
affiliates.
The existing and new Management Agreements may be terminated at any time
by the Adviser, by the Board of Trustees or by vote of a majority of the
outstanding voting securities of the Fund without penalty on 60 days' written
notice; shall automatically terminate upon any assignment; and otherwise shall
continue in effect from year to year if approved annually (1) by the Board of
Trustees or by vote of a majority of the outstanding voting securities of the
Fund and (2) by a majority of the Trustees who are not "interested" persons as
defined under the 1940 Act.
The Adviser provides bookkeeping and pricing services to the Fund pursuant
to a separate Pricing and Bookkeeping Agreement under which the Adviser is paid
a monthly fee of $2,250 for the first $50 million of the Fund's net assets, plus
a monthly percentage fee at the following annual rates: 0.035% on the next $950
million; 0.025% on the next $1 billion; 0.015% on the next $1 billion; and
0.001% on the excess over $3 billion of the average daily net assets of the Fund
for such month. For these services, the Fund paid the Adviser $93,000 for the
fiscal year ended June 30, 1997.
Colonial Investors Service Center, Inc. (Transfer Agent), an affiliate of
the Adviser, serves as the Fund's shareholder servicing and transfer agent. The
Transfer Agent is paid a monthly fee of 0.25% annually of the Fund's average
daily net assets plus certain out-of-pocket expenses. For these services, the
Fund paid the Transfer Agent $785,000 for the fiscal year ended June 30, 1997.
Effective October 1, 1997, the fee will begin to be reduced so that after
September 30, 1998, the fee will be at the annual rate of 0.236% of the Fund's
average daily net assets plus certain out-of-pocket expenses.
Colonial Investment Services, Inc. (Distributor), a subsidiary of the
Adviser, serves as the distributor for the Fund's shares. For the fiscal year
ended June 30, 1997, the Distributor retained net underwriting discounts of
$120,000 on sales of the Fund's Class A shares and received contingent deferred
sales charges of $310,000 and $10,000 on Class B and Class C share redemptions,
respectively. The Distributor is also paid a monthly service fee at an annual
rate of 0.25% of the Fund's net assets attributable to Class A, Class B and
Class C shares. The Fund also pays the Distributor a monthly fee of 0.75% of the
average daily net assets attributed to the Fund's Class B and Class C shares.
For these services, the Fund paid the Distributor service fees of $589,000 and
distribution fees applicable to Class B and Class C shares of $956,000 and
$35,000, respectively, for the fiscal year ended June 30, 1997.
In addition to the fees described above, the Fund pays all of its expenses
not assumed by the Adviser, including, without limitation, fees and expenses of
the Independent Trustees, interest charges, taxes, brokerage commissions,
expenses of
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issue or redemption of shares, fees and expenses of registering and qualifying
shares of the Fund for distribution under federal and state laws and
regulations, custodial, auditing and legal expenses, expenses of providing
reports to shareholders, expenses of meetings of shareholders, expenses of
printing and mailing prospectuses, proxy statements and proxies to existing
shareholders, and its proportionate share of insurance premiums and professional
association dues or assessments. With respect to Colonial Trust VI, all general
Trust expenses are allocated among and charged to the assets of each fund in the
Trust, including the Fund, on a basis that the Board of Trustees deem fair and
equitable, which may be based on the relative net assets of such funds or the
nature of the services performed and relative applicability of the services to
each fund. Each fund also is responsible for such non-recurring expenses as may
arise, including litigation in which the fund may be a party, and other expenses
as determined by the Board of Trustees. Each fund may have an obligation to
indemnify its officer and Trustees with respect to litigation.
e. Other Funds Managed by the Adviser.
In addition to the services provided by the Adviser to the Fund, the
Adviser also provides management and other services and facilities to other
investment companies with different investment objectives than the Fund.
Information with respect to the assets of and management fees payable to the
Adviser by the funds having investment objectives similar to those of the Fund,
is set forth below:
Annual
Total Net Assets Management/Administration
at July 31, 1997 Fee as % of Average
Funds (in millions) Daily Net Assets
- - ----- ------------- ----------------
Colonial Aggressive Growth Fund 4.0 0.85% (1)
Colonial Select Value Fund 523.5 0.60% (2)
Colonial U.S. Stock Fund 701.8 0.80% (3)
Colonial-Keyport U.S. Stock Fund 85.2 0.80% (4)
(1) The Adviser has voluntarily agreed to waive its fee so that the fund's
total expenses will not exceed 1.30%.
(2) The Adviser receives a monthly management fee of 1/12 of 0.60% of fund
average net assets, adjusted upward or downward by a maximum of 0.20% of
such assets based on the relative total return of the fund and the S&P
Index over the prior 12 months. Subject to shareholder approval on
September 30, 1997, the current fee structure will be replaced with a
management fee of 0.70% with no performance adjustment.
(3) The Adviser has voluntarily agreed to waive its fee so that the fund's
total expenses will not exceed 1.25%.
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(4) The Adviser is the sub-adviser and receives a sub-advisory fee of 0.60%
of the fund's average daily net assets. The fee is for investment
management services only. Keyport Advisory Services Corp., the Fund's
manager, has voluntarily agreed to waive its fee so that the fund's
total expenses will not exceed 1.00%.
f. Required Vote.
Approval of the new Management Agreement will require the affirmative vote
of a "majority of the outstanding voting securities" of the Fund (as defined in
the 1940 Act), which means the affirmative vote of the lesser of (1) more than
50% of the outstanding shares of the Fund or (2) 67% or more of the shares of
the Fund present at the Meeting if more than 50% of the outstanding shares of
the Fund are represented at the Meeting in person or by proxy.
The Trustees unanimously recommend that shareholders of the Fund vote to
approve the new Management Agreement.
2. Ratification of Independent Accountants.
a. Description of Proposal.
Price Waterhouse LLP was selected as independent accountants for the Fund
for the Fund's fiscal year ending June 30, 1998, by unanimous vote of the Board
of Trustees, subject to ratification or rejection by the shareholders. Neither
Price Waterhouse LLP nor any of its partners has any direct or material indirect
financial interest in the Fund. A representative of Price Waterhouse LLP will be
available at the Meeting, if requested by a shareholder in writing at least five
days before the Meeting, to respond to appropriate questions and make a
statement (if the representative desires).
b. Required Vote.
Ratification requires the affirmative vote of a majority of the shares of
the Fund voted at the Meeting.
3. Other Matters and Discretion of Attorneys Named in the Proxy.
As of the date of this Proxy Statement, only the business mentioned in
Items 1 and 2 of the Notice of the Meeting is contemplated to be presented. If
any procedural or other matters properly come before the Meeting, the enclosed
proxy shall be voted in accordance with the best judgment of the proxy
holder(s).
The Meeting is to be held at the same time as the meeting of shareholders of
Colonial Global Equity Fund and Colonial Select Value Fund. It is anticipated
that such
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meetings will be held simultaneously. In the event that any Fund shareholder at
the Meeting objects to the holding of a simultaneous meeting and moves for an
adjournment of the meetings so that the Meeting of the Fund may be held
separately, the persons named as proxies will vote in favor of such an
adjournment.
If a quorum of shareholders (thirty percent of the shares entitled to vote
at the Meeting) is not represented at the Meeting or at any adjournment thereof,
or, even though a quorum is so represented, if sufficient votes in favor of the
Items set forth in the Notice of the Meeting are not received by September 30,
1997, the persons named as proxies may propose one or more adjournments of the
Meeting for a period or periods of not more than ninety days in the aggregate
and further solicitation of proxies may be made. Any such adjournment may be
effected by a majority of the votes properly cast in person or by proxy on the
question at the session of the Meeting to be adjourned. The persons named as
proxies will vote in favor of such adjournment those proxies which they are
entitled to vote in favor of the Items set forth in the Notice of the Meeting.
They will vote against any such adjournment those proxies required to be voted
against any of such Items.
The Trust's Agreement and Declaration of Trust does not provide for an
annual meeting of shareholders. Shareholder proposals for inclusion in the proxy
statement for any subsequent meeting must be received by the Fund within a
reasonable period of time prior to such meeting.
Shareholders are urged to vote, sign and mail their proxies immediately.
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APPENDIX A
MANAGEMENT AGREEMENT
AGREEMENT dated as of September 30, 1997, between COLONIAL TRUST VI, a
Massachusetts business trust (Trust), with respect to COLONIAL SMALL CAP VALUE
FUND (Fund), and COLONIAL MANAGEMENT ASSOCIATES, INC., a Massachusetts
corporation (Adviser).
In consideration of the promises and covenants herein, the parties agree as
follows:
1. The Adviser will manage the investment of the assets of the Fund in
accordance with its prospectus and statement of additional information
and will perform the other services herein set forth, subject to the
supervision of the Board of Trustees of the Trust. The Adviser may
delegate its investment responsibilities to a sub-adviser.
2. In carrying out its investment management obligations, the Adviser shall:
(a) evaluate such economic, statistical and financial information and
undertake such investment research as it shall believe advisable; (b)
purchase and sell securities and other investments for the Fund in
accordance with the procedures described in its prospectus and statement
of additional information; and (c) report results to the Board of
Trustees of the Trust.
3. The Adviser shall furnish at its expense the following:
(a) office space, supplies, facilities and equipment; (b) executive and
other personnel for managing the affairs of the Fund (including preparing
financial information of the Fund and reports and tax returns required to
be filed with public authorities, but exclusive of those related to
custodial, transfer, dividend and plan agency services, determination of
net asset value and maintenance of records required by Section 31(a) of
the Investment Company Act of 1940, as amended, and the rules thereunder
(1940 Act); and (c) compensation of Trustees who are directors, officers,
partners or employees of the Adviser or its affiliated persons (other
than a registered investment company).
4. The Adviser shall be free to render similar services to others so long as
its services hereunder are not impaired thereby.
5. The Fund shall pay the Adviser monthly a fee at the annual rate of 0.80%
of the average daily net assets of the Fund.
6. If the operating expenses of the Fund for any fiscal year exceed the most
restrictive applicable expense limitation for any state in which shares
are sold, the Adviser's
15
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fee shall be reduced by the excess but not to less than zero. Operating
expenses shall not include brokerage, interest, taxes, deferred
organization expenses, Rule 12b-1 distribution fees, service fees and
extraordinary expenses, if any. The Adviser may waive its compensation
(and bear expenses of the Fund) to the extent that expenses of the Fund
exceed any expense limitation the Adviser declares to be effective.
7. This Agreement shall become effective as of the date of its execution,
and
(a) unless otherwise terminated, shall continue until two years from its
date of execution and from year to year thereafter so long as approved
annually in accordance with the 1940 Act; (b) may be terminated without
penalty on sixty days' written notice to the Adviser either by vote of
the Board of Trustees of the Trust or by vote of a majority of the
outstanding shares of the Fund; (c) shall automatically terminate in the
event of its assignment; and (d) may be terminated without penalty by the
Adviser on sixty days' written notice to the Trust.
8. This Agreement may be amended in accordance with the 1940 Act.
9. For the purpose of the Agreement, the terms "vote of a majority of the
outstanding shares", "affiliated person" and "assignment" shall have
their respective meanings defined in the 1940 Act and exemptions and
interpretations issued by the Securities and Exchange Commission under
the 1940 Act.
10. In the absence of willful misfeasance, bad faith or gross negligence on
the part of the Adviser, or reckless disregard of its obligations and
duties hereunder, the Adviser shall not be subject to any liability to
the Trust or the Fund, to any shareholder of the Trust or the Fund or to
any other person, firm or organization, for any act or omission in the
course of, or connected with, rendering services hereunder.
COLONIAL TRUST VI on behalf of COLONIAL MANAGEMENT
COLONIAL SMALL CAP VALUE FUND ASSOCIATES, INC.
By: __________________________ By: ____________________________
Title: Title:
A copy of the document establishing the Trust is filed with the Secretary of The
Commonwealth of Massachusetts. This Agreement is executed by officers not as
individuals and is not binding upon any of the Trustees, officers or
shareholders of the Trust individually but only upon the assets of the Fund.
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[Colonial Flag Logo]
Colonial
Mutual Funds
P.O. Box 1722
Boston, Massachusetts
02105-1722
COLONIAL SMALL CAP VALUE FUND
This proxy when properly executed will be voted in the manner directed
and, absent direction, will be voted FOR Items 1 and 2 listed below.
1. PROPOSAL TO APPROVE A NEW MANAGEMENT AGREEMENT FOR THE FUND PROVIDING FOR
AN INCREASE IN THE MANAGEMENT FEE PAID BY THE FUND. (Item 1 of the Notice)
/ / FOR / / AGAINST / / ABSTAIN
2. PROPOSAL TO RATIFY THE SELECTION OF INDEPENDENT ACCOUNTANTS.
(Item 2 of the Notice)
/ / FOR / / AGAINST / / ABSTAIN
3. IN THEIR DISCRETION, UPON SUCH OTHER MATTERS AS MAY PROPERLY COME BEFORE THE
MEETING.
PLEASE READ BOTH SIDES OF THIS CARD.
VOTE TODAY!
COLONIAL INVESTORS SERVICE CENTER, INC.
Please sign exactly as name appears hereon. When signing as attorney,
executor, administrator, trustee or guardian, please give full title as
such. If a corporation, please sign in full corporate name by President or
other authorized officer. If a partnership, please sign in partnership name
by authorized person.
PLEASE MARK, SIGN DATE AND RETURN THIS PROXY PROMPTLY USING THE ENCLOSED
ENVELOPE. Date
Shareholder sign here Co-owner sign here
PLEASE VOTE PROMPTLY
- - --------------------
Your vote is important, no matter how many shares you own. Please vote on the
reverse side of this proxy card and sign in the space(s) provided. Return
your completed proxy card in the enclosed envelope today.
You may receive additional proxies for other accounts. These are not
duplicates; you should sign and return each proxy card in order for your votes
to be counted.
This proxy is solicited on behalf of the Board of Trustees. The signers of this
proxy hereby appoint Harold W. Cogger, Nancy L. Conlin, Michael H. Koonce,
and John W. Reading, and each of them, proxies of the signers, with power of
substitution to vote at the Special Meeting of Shareholders to be held at
Boston, Massachusetts, on September 30, 1997, and at any adjournments, as
specified herein, and in accordance with their best judgement, on any other
business that may properly come before this meeting.
After careful review, the Board of Trustees unanimously has recommended a vote
"FOR" all matters.
