- ----------------------------------------------
COLONIAL U.S. STOCK FUND Semiannual report
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December 31, 1997
[GRAPHIC OMITTED]
-----------------------
Important information
- ---------------------------- about the Fund's
Not FDIC May Lose Value investment objective
Insured No Bank Guarantee on page 5.
- ---------------------------- -----------------------
<PAGE>
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COLONIAL U.S. STOCK FUND HIGHLIGHTS
JULY 1, 1997 - DECEMBER 31, 1997
Investment Objective: Colonial U.S. Stock Fund seeks long-term growth by
investing primarily in large capitalization equities.
The Fund is Designed to Offer:
o Long-term growth potential
o Disciplined value investment strategy
o Expert portfolio management
Portfolio Manager Commentary: "A strategic move to underweight technology stocks
and overweight financial services stocks contributed to the Fund's strong
performance as the technology sector sold off dramatically during the last
quarter of 1997." -- Mark Stoeckle
Colonial U.S. Stock Fund Performance
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Class A Class B Class C(1)
Inception dates 7/1/92 7/1/92 7/1/94
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Distributions declared per share $2.247 $2.200 $2.200
- ----------------------------------------------------------------------------
6-month total returns, assuming 12.02% 11.51% 11.59%
reinvestment of all distributions and
no sales charge or contingent deferred
sales charge (CDSC)
- ----------------------------------------------------------------------------
Net asset value per share on 12/31/97 $17.43 $17.19 $17.28
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Top Five Holdings(2)
(as of 12/31/97)
- ---------------------------------------------
1. Philip Morris Co., Inc. .......... 3.2%
2. General Electric Co. ............. 2.8%
3. Travelers Group, Inc. ............ 2.6%
4. BankAmerica Corp. ................ 2.0%
5. TJX Companies, Inc. .............. 1.9%
Top Five Sectors(2)
(as of 12/31/97)
- ---------------------------------------------
1. Financials ....................... 20.4%
2. Technologies ..................... 13.3%
3. Health Care ...................... 9.7%
4. Capital Goods .................... 9.3%
5. Consumer Cyclicals ............... 9.1%
(1) Effective July 1, 1997, Class D shares were redesignated Class C shares.
(2) Holdings and sector breakdowns are calculated as a percentage of total net
assets. Because the Fund is actively managed, holdings and sector
weightings will change. 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 on this page are based upon Colonial's defined criteria as
used in the investment process.
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2
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PRESIDENT'S MESSAGE
TO FUND SHAREHOLDERS
[PHOTO]
I am pleased to present the semiannual report for Colonial U.S. Stock Fund. This
report reflects on the investment environment and discusses the Fund's
performance during the six months ended December 31, 1997.
Financial markets experienced a number of newsworthy events during the past six
months. In July, the Dow Jones Industrial Average surpassed the 8,000 mark, on
its way to a peak for the year of 8,259 on August 6. Meanwhile, currency
devaluations in Asia plagued international markets and began to create concern
for investors in U.S. stocks as well. As overseas markets declined, the U.S.
market joined the sell-off on October 27, plunging over 554 points, the largest
single-day point drop in history. However, U.S. stocks bounced back on October
28, gaining 337 points, the Dow's largest single-day point gain in history.
Between October 27 and year-end, the Dow rebounded 10.4%, the Standard & Poor's
500 Index gained 10.7% and the Russell 2000(R) Index was up 4.0%, illustrating
the market's dominance by the larger company stocks in which the Fund invests.
Looking ahead, events in Asia are expected to put some pressure on U.S. earnings
growth, although it is still too early to predict to what extent. Meanwhile,
conditions in the U.S. remain positive for stocks: the economy continues to
grow, inflation remains low and many companies continue to increase productivity
and cut costs. However, expectations are for slower economic growth in 1998 and
the market should place a premium on companies that can sustain or increase
their earnings in such an environment.
Participation in the large-cap market offers an opportunity to create a
diversified core equity portfolio as well as take advantage of good growth
prospects. The following report will provide you with specific information on
your Fund's performance as well as an in-depth report from your portfolio
manager. We appreciate your continued confidence in the Fund and thank you for
giving us the opportunity to serve your investment needs.
Respectfully,
/s/ Harold W. Cogger
Harold W. Cogger
President
February 9, 1998
The Russell 2000(R) Index is a tradename of the Frank Russell Company.
Because market conditions change frequently, there can be no assurance that the
trends described here will continue.
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3
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PORTFOLIO MANAGEMENT REPORT
[PHOTO]
Mark Stoeckle is Portfolio Manager of Colonial U.S. Stock Fund and is vice
president of Colonial Management Associates, Inc.
Investment environment gave the stock market a roller coaster ride
The first half of the period was very strong for large company stocks. However,
the Asian currency crisis had a negative effect on the markets during the second
half of the period. In two consecutive days the Dow Jones Industrial Average
posted its largest single-day point decline in history followed by its largest
single-day point gain. By the end of the period, large stocks had regained most
of their losses, illustrating their current dominance over smaller stocks, which
continued to lag.
Fund benefited from strategic shift from technology stocks into financial
service stocks
Early in the period, we believed several technology stocks had become overpriced
and no longer offered attractive values. We sold some of our technology holdings
and invested the proceeds in financial service stocks that offered greater
potential earnings growth including Travelers, BankAmerica and Sallie Mae. Both
Travelers and BankAmerica have participated in merger and acquisition activity
that has strengthened their market position. They have increased their fee-based
business, including asset management and investment banking, while reducing
their reliance on traditional, low profit margin activities. Such moves have
decreased these institutions' sensitivity to interest rates and have resulted in
an improved earnings outlook. Shareholders benefited from this strategic shift
as technology stocks lost ground during the second half of the period and
financial institutions outperformed the market.
Good performance continued
For the six months ended December 31, 1997, the Fund generated a total return of
12.02% for Class A shares, based on net asset value. This outperformed the S&P
500 which returned 10.58%. We attribute this performance to superior stock
selection and diversification across a wide range of market sectors as well as a
lower concentration in technology stocks than the Index.
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4
<PAGE>
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Focus on long-term growth at attractive prices
We focused on high quality, large-cap stocks with good long-term growth
potential. Large companies continued to make productivity gains and focus on
their core competencies. Many companies are strategically better run today than
ever before in their histories. These factors should have a favorable effect on
earnings growth in the future. The Fund's largest holding, Philip Morris Co., is
a good example of a company that we believe has significant upside potential.
The stock was attractively priced, in part because of uncertainty caused by
potential tobacco litigation. However, once an agreement, in principle, was
reached with several states' Attorneys General early in the period, we began
buying the stock based on strong prospects for long-term growth. While the stock
price has increased since we bought it, we believe it has the potential for
greater appreciation in the future.
Positive outlook for large-cap stocks
Events of the past six months have left investors wondering what lies ahead for
the financial markets. The currency and financial crisis in Asia continues to
play out and while we think that U.S. corporate earnings growth may be affected,
it is too early to predict the extent of the impact. A number of factors lead us
to believe there is still room for large company stocks to generate attractive
earnings growth, although at a slower pace than over the last three years. The
economy is still growing, inflation is low and companies continue to harness
technology to improve productivity and cut costs. However, we think that stock
selection will become more important in 1998 as a "rising tide" may not continue
to carry all stocks along with it. We believe we have a superior approach to
stock selection as reflected by our core investment strategy and we are
confident that we will continue to find attractively valued, quality stocks.
Effective March 2, 1998, the Fund's investment objective will change to "seeks
long-term growth and income" from "seeks long-term growth by investing primarily
in large capitalization equity." This change will not impact how the Fund is
managed. Colonial U.S. Stock Fund continues to be managed as a growth and income
fund which invests primarily in large capitalization stocks.
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5
<PAGE>
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Colonial U.S. Stock Fund Investment Performance vs. the S&P 500 Index
Change in Value of $10,000 from 7/1/92 - 12/31/97
Class A Shares
Based on NAV and POP
[The following table was originally a mountain graph in the printed materials.]
NAV POP S & P 500
--- --- ---------
Jul 1, 92 10000 9425 10000
Jul 31, 92 10420 9820.8 10408
Aug 3l, 92 10140 9557 10196 CUSSF-A
Sep 30, 92 10210 9622.9 10315
Oct 3l, 92 10290 9698.3 10351
Nov 30, 92 10660 10047 10702
Dec 3l, 92 10957.3 10327.3 10834
Jan 31, 93 11087.6 10450.1 10924
Feb 28, 93 11077.6 10440.6 11073
Mar 31, 93 11598.9 10932 11306
Apr 30, 93 11358.3 10705.2 11033
May 31, 93 11749.3 11073.7 11328
Jun 30, 93 11889.8 11206.1 11361
Jul 31, 93 11789.2 11111.3 11315
Aug 31, 93 12231.8 11528.4 11743
Sep 30, 93 12412.8 11699.1 11663
Oct 31, 93 12493.3 11774.9 11894
Nov 30, 93 12282.1 11575.8 11781
Dec 31, 93 12512 11792.5 11923
Jan 31, 94 12770 12035.8 12328
Feb 28, 94 12470.7 11753.6 11994
Mar 31, 94 12016.4 11325.5 11472
Apr 30, 94 12037.1 11345 11619
May 31, 94 12181.6 11481.2 11809
Jun 30, 94 11895.8 11211.6 11520
Jul 31, 94 12144.7 11446.4 11898
Aug 31, 94 12684.5 11955.1 12384
Sep 30, 94 12528.8 11808.4 12082
Oct 3l, 94 12894.9 11964.9 12353
Nov 30, 94 12279.7 11573.6 11904
Dec 31, 94 12469.5 11752.5 12080
Jan 31, 95 12780.9 12046 12393
Feb 26, 95 13381.6 12612.2 12675
Mar 31, 95 13704.2 12918.2 13255
Apr 30, 95 14004.5 13199.3 13645
May 31, 95 14583 13744.4 14189
Jun 30, 95 14850.9 13997 14518
Jul 31, 95 15332.5 14450.9 14999
Aug 31. 95 15242.9 14366.4 15037
Sep 30, 95 15769.3 14862.6 15671
Oct 3l, 95 15668.5 14767.6 15615
Nov 30, 95 16239.7 15305.9 16300
Dec 3l, 95 16146.9 15218.5 16614
Jan 31, 96 16584.3 15630.7 17179
Feb 29, 96 16851.6 15862.7 17338
Mar 31, 96 16863.8 15894.1 17505
Apr 30, 96 17483.4 16478.1 17763
May 31, 96 17920.8 16890.4 18220
Jun 30, 96 17650.8 16635.8 18290
Jul 31, 96 16699.3 15739.1 17482
Aug 31, 96 17223.8 16233.5 17852
Sep 30, 96 17980.1 16946.3 l8855
Oct 31, 96 18443.6 17383.1 19376
Nov 30, 96 19797.6 18659.3 20839
Dec 31, 96 19326.5 18215.2 20426
Jan 31, 97 20653 19465.4 21701
Feb 28, 97 20692.8 19502.9 21872
Mar 31, 97 19963.2 18815.3 20975
Apr 30, 97 21170.3 19953 22226
May 31, 97 22430.4 21140.7 23584
Jun 30, 97 23322.1 21981.1 24633
Jul 31, 97 25448.3 23985 26592
Aug 31, 97 24491.5 23083.2 25104
Sep 30, 97 25860.3 24373.3 26478
Oct 31, 97 24624.4 23208.5 25595
Nov 30, 97 25554.6 24085.2 26778
Dec 31, 97 26124.8 24622.7 27238
Class B Shares
Based on NAV and Maximum CDSC
[The following table was originally a mountain graph in the printed materials.]
NAV CDSC S & P 500
--- ---- ---------
Jul 1, 92 10000 10000 10000
Jul 31, 92 10420 10420 10408
Aug 3l, 92 10140 10140 10196 CUSSF-B
Sep 3O, 92 10210 10210 10315
Oct 31, 92 10280 10280 10351
Nov 30, 92 10630 10630 10702
Dec 31, 92 10908 10908 10834
Jan 31, 93 11028 11028 10924
Feb 28, 93 11008 11008 11073
Mar 31, 93 11508 11508 11306
Apr 30, 93 11268 11268 11033
May 31, 93 11648 11648 11328
Jun 30, 93 ll784 11784 11361
Jul 31, 93 11674 11674 11315
Aug 3l, 93 12104 12104 11743
Sep 3O, 93 12285 12285 11653
0ct 31, 93 12345 12345 11894
Nov 3O, 93 12124 12124 11781
Dec 31. 93 12342 12342 11923
Jan 31, 94 12599 12599 12328
Feb 28, 94 12291 12291 11994
Mar 31, 94 11841 11841 11472
Apr 30, 94 11861 11861 11619
May 31, 94 11984 11984 11809
Jun 30, 94 11700 11700 11520
Jul 31, 94 11936 11936 11898
Aug 31, 94 12449 12449 12384
Sep 30, 94 12295 12295 12082
Oct 31, 94 12460 12460 12353
Nov 30, 94 12039 12039 11904
Dec 3l, 94 12213 12213 12080
Jan 31, 95 12509 12509 12393
Feb 28, 95 13090 13090 12875
Mar 31, 95 13397 13397 13255
Apr 30, 95 13682 13682 13645
May 31, 95 14241 14241 14189
Jun 30, 95 l45O1 14501 14516
Jul 31, 95 14952 14952 14999
Aug 31, 95 14853 14853 15037
Sep 30, 95 15370 15370 15671
Oct 31, 95 15260 15260 15615
Nov 30, 95 15799 15799 16300
Dec 31, 95 15697 15697 16614
Jan 31, 96 16114 16114 17179
Feb 29, 96 16364 16364 17338
Mar 31, 96 16376 16376 17505
Apr 30. 96 16959 16959 17763
May 31, 96 17375 17375 18220
Jun 30, 96 17097 17097 18290
Jul 31, 96 16169 16169 17482
Aug 31, 96 16669 16669 17652
Sep 30, 96 17383 17383 18855
Oct 31. 96 17824 17824 19375
Nov 30, 96 19122 19122 20839
Dec 31, 96 18650 18650 20426
Jan 31, 97 19915 19915 21701
Feb 28. 97 19941 19941 21872
Mar 31, 97 19231 19231 20975
Apr 30, 97 20380 20380 22226
May 31, 97 21582 21582 23584
Jun 30, 97 22434 22434 24633
Jul 31, 97 24449 24449 26592
Aug 31, 97 23519 23519 25104
Sep 30. 97 24823 24623 26478
Oct 31, 97 23622 23622 25595
Nov 30, 97 24487 24487 26778
Dec 3l, 97 25017 24917 27238
A $10,000 investment in Class C shares made on July 1, 1994 (inception), at net
asset value (NAV) would have grown to $21,401 on December 31, 1997. The Standard
& Poor's 500 Index is an unmanaged index that tracks the performance of a
selection of widely held common stocks. Unlike mutual funds, indexes are not
investments, do not incur fees or expenses and are not professionally managed.
Average Annual Total Returns
As of December 31, 1997
- --------------------------------------------------------------------------------
Class A Shares Class B Shares Class C Shares(1)
Inception 7/1/92 7/1/92 7/1/94
NAV POP NAV w/CDSC NAV w/CDSC
- --------------------------------------------------------------------------------
1 year 35.18% 27.40% 34.14% 29.14% 34.21% 33.21%
- --------------------------------------------------------------------------------
5 years 18.98 17.58 18.06 17.85 -- --
Since inception 19.05 17.78 18.12 18.03 24.23 24.23
- --------------------------------------------------------------------------------
(1) Effective July 1, 1997, Class D shares were redesignated Class C shares.
Past performance cannot predict future results. Returns and value of an
investment will vary, resulting in a gain or loss on sale. All results shown
assume reinvestment of distributions. NAV returns do not include sales charges
or CDSC. Public offering price (POP) returns include the maximum sales charge of
5.75% for Class A shares. The CDSC returns reflect the maximum charges of 5% for
1 year, 2% for 5 years and 1% since inception for Class B shares and 1% for 1
year for Class C shares.
6
<PAGE>
INVESTMENT PORTFOLIO
DECEMBER 31, 1997 (UNAUDITED, IN THOUSANDS)
COMMON STOCKS - 93.2% SHARES VALUE
- -------------------------------------------------------------------------------
AGRICULTURE, FORESTRY & FISHING - 1.3%
Agriculture - Crops
RJR Nabisco Holdings Corp. 259 $ 9,705
-----------
...............................................................................
FINANCE, INSURANCE & REAL ESTATE - 22.0%
Depository Institutions - 7.7%
Bankamerica Corp. 206 15,023
Chase Manhattan Corp. 94 10,315
Citicorp 105 13,276
Comerica, Inc. 86 7,761
First Union Corp. 197 10,117
Nations Bank Corp. 26 1,569
-----------
58,061
-----------
Insurance Carriers - 7.7%
American International Group, Inc. 100 10,875
Mercury General Corp. 132 7,282
Old Republic International Corp. 196 7,300
Travelers Group, Inc. 368 19,831
United Healthcare Corp. 142 7,071
Wellpoint Health Networks, Inc. 122 5,167
-----------
57,526
-----------
Nondepository Credit Institutions - 4.6%
American Express Co. 141 12,611
Green Tree Financial Corp. 197 5,159
ITT Hartford Group, Inc. 73 6,867
Student Loan Marketing Association 68 9,439
-----------
34,076
-----------
Security Brokers & Dealers - 2.0%
Bear Stearns Companies, Inc. 193 9,157
Lehman Brothers Holdings, Inc. 120 6,120
-----------
15,277
-----------
...............................................................................
MANUFACTURING - 44.6%
Apparel - 1.3%
VF Corp. 210 9,638
-----------
Chemicals & Allied Products - 10.5%
American Home Products Corp. 93 7,090
Clorox Co. 77 6,119
Dow Chemical Co. 99 10,079
Eli Lilly & Co. 90 6,266
Johnson & Johnson 55 3,597
7
<PAGE>
Investment Portfolio/December 31, 1997
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COMMON STOCKS - CONT. SHARES VALUE
- -------------------------------------------------------------------------------
MANUFACTURING - CONT.
Chemicals & Allied Products
Jones Medical Industries, Inc. 69 $ 2,637
Merck & Co., Inc. 117 12,421
Procter & Gamble Bo. 63 5,044
Rohm & Haas Company 66 6,348
Schering-Plough Corp. 199 12,388
Warner-Lambert Co. 53 6,572
-----------
78,561
-----------
Communications Equipment - 0.7%
Lucent Technologies, Inc.. 70 5,595
-----------
Electrical Industrial Equipment - 2.8%
General Electric Co. 283 20,750
-----------
Electronic Components - 1.3%
Intel Corp. 45 3,168
SCI Systems, Inc. 157 6,857
-----------
10,025
-----------
Food & Kindred Products - 4.2%
Hershey Foods, Corp. 32 1,988
Interstate Bakeries Corp. 145 5,375
Philip Morris Co., Inc. 536 24,297
-----------
31,660
-----------
Furniture & Fixtures - 1.9%
Herman Miller, Inc. 114 6,216
Masco Corp. 155 7,886
-----------
14,102
-----------
Machinery & Computer Equipment - 8.3%
Applied Materials, Inc. (a) 112 3,368
Caterpillar, Inc. 162 7,847
Compaq Computer Corp. (a) 124 6,998
Digital Equipment 201 7,437
EMC Corp. 378 10,371
Ingersoll Rand Co. 91 3,654
Storage Technology Corp. (a) 24 1,487
Sun Microsystems, Inc. (a) 224 8,948
Tyco International Ltd. 270 12,167
-----------
62,277
-----------
Measuring & Analyzing Instruments - 3.7%
Honeywell, Inc. 50 3,418
Raytheon Co., Class B 165 8,343
Tektronix, Inc. 109 4,334
8
<PAGE>
Investment Portfolio/December 31, 1997
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Thermo Electron Corp. 262 $ 11,663
-----------
27,758
-----------
Petroleum Refining - 6.7%
Ashland Oil, Inc. 75 4,027
Atlantic Richfield Co. 88 7,051
Chevron Corp. 22 1,725
Exxon Corp. 156 9,521
Mobil Corp. 128 9,254
Texaco, Inc. 134 7,275
USX-Marathon Group 345 11,650
-----------
50,503
-----------
Primary Metal - 0.5%
USX-US Steel Group 121 3,781
-----------
Transportation Equipment - 2.7%
General Dynamics Corp. 74 6,405
Textron, Inc. 116 7,263
United Technologies Corp. 93 6,793
-----------
20,461
-----------
...............................................................................
MINING & ENERGY - 0.9%
Crude Petroleum & Natural Gas - 0.5%
Burlington Resources, Inc. 75 3,361
-----------
Nonmetallic, Except Fuels - 0.4%
Vulcan Materials Co. 32 3,248
-----------
...............................................................................
RETAIL TRADE - 7.6%
Apparel & Accessory Stores - 1.9%
TJX Companies, Inc. 420 14,451
-----------
Food Stores - 0.7%
Safeway, Inc. (a) 87 5,490
-----------
General Merchandise Stores - 3.0%
Dayton Hudson Corp. 159 10,756
Federated Department Stores, Inc. (a) 163 7,028
Sears, Roebuck & Co. 98 4,453
-----------
22,237
-----------
Home Furnishings & Equipment - 0.3%
CompUSA, Inc. (a) 69 2,145
-----------
Miscellaneous Retail - 1.7%
Office Depot, Inc. 537 12,854
-----------
9
<PAGE>
Investment Portfolio/December 31, 1997
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COMMON STOCKS - CONT. SHARES VALUE
- -------------------------------------------------------------------------------
SERVICES - 5.1%
Business Services - 1.5%
Cendant Corp. 317 $ 10,904
-----------
Computer Related Services - 0.4%
Cadence Design Systems, Inc. 136 3,332
-----------
Computer Software - 2.1%
Microsoft Corp. 98 12,666
Sungard Data Systems, Inc. 104 3,209
-----------
15,875
-----------
Health Services - 0.7%
Tenet Healthcare Corp. 167 5,535
-----------
Hotels, Camps & Lodging - 0.4%
Hilton Hotels Corp. 98 2,916
-----------
...............................................................................
TRANSPORTATION, COMMUNICATION, ELECTRIC, GAS &
SANITARY SERVICES - 10.8%
Air Transportation - 1.7%
Continental Airlines, Class B 120 5,775
U.S. Airways Group, Inc. 110 6,875
-----------
12,650
-----------
Communications - 3.4%
Ameritech Corp. 170 13,661
Bell Atlantic Corp. 30 2,771
Bellsouth Corp. 55 3,080
SBC Communications, Inc. 79 5,751
-----------
25,263
-----------
Electric, Gas & Sanitary Services - 0.3%
Enova Corp. 86 2,330
-----------
Electric Services - 3.5%
FPL Group, Inc. 74 4,380
GPU, Inc. 229 9,642
Long Island Lighting Co. 257 7,742
Nipsco Industries, Inc. 84 4,153
-----------
25,917
-----------
Motor Freight & Warehousing - 0.7%
CNF Transportation 142 5,432
-----------
Telecommunications - 1.2%
U.S. West Communications Group 204 9,211
-----------
10
<PAGE>
Investment Portfolio/December 31, 1997
- -------------------------------------------------------------------------------
WHOLESALE TRADE - 0.9%
Nondurable Goods
Bergen Brunswig Corp., Class A 85 $ 3,581
Richfood Holdings, Inc. 123 3,487
-----------
7,068
-----------
TOTAL COMMON STOCKS (cost of $526,953) 699,975
-----------
CORPORATE FIXED-INCOME BONDS - 3.8% PAR
- -------------------------------------------------------------------------------
FINANCE, INSURANCE & REAL ESTATE - 1.3%
Depository Institutions - 0.5%
Fleet/Norstar Group,
8.625% 01/15/07 $ 3,000 3,416
-----------
Nondepository Credit Institutions - 0.8%
General Motors Acceptance Corp.,
8.500% 01/15/03 4,000 4,370
Household Finance Co.,
8.250% 02/15/05 1,820 1,999
-----------
6,369
-----------
...............................................................................
MANUFACTURING - 0.4%
Machinery & Computer Equipment
Xerox Corp.,
8.125% 04/15/02 3,000 3,224
-----------
...............................................................................
MINING & ENERGY - 0.4%
Crude Petroleum & Natural Gas
Union Oil of California,
7.200% 05/15/05 3,000 3,128
-----------
...............................................................................
RETAIL TRADE - 0.5%
General Merchandise Stores
Wal Mart Stores, Inc.,
8.625% 04/01/01 3,000 3,226
-----------
...............................................................................
TRANSPORTATION, COMMUNICATION, ELECTRIC, GAS &
SANITARY SERVICES - 1.2%
Electric Services - 0.4%
Texas Utility Electric,
8.250% 04/01/04 3,000 3,274
-----------
Gas Services - 0.4%
Southern Natural Gas,
8.625% 05/01/02 2,500 2,723
-----------
11
<PAGE>
Investment Portfolio/December 31, 1997
- -------------------------------------------------------------------------------
CORPORATE FIXED-INCOME BONDS - CONT. PAR VALUE
- -------------------------------------------------------------------------------
TRANSPORTATION, COMMUNICATION, ELECTRIC, GAS &
SANITARY SERVICES - CONT.
Railroad - 0.4%
Norfolk Southern,
7.875% 02/15/04 $ 3,000 $ 3,222
-----------
TOTAL CORPORATE FIXED-INCOME BONDS (cost of $28,189) 28,582
-----------
TOTAL INVESTMENTS - 97.0% (cost of $555,142)(b) 728,557
-----------
SHORT-TERM OBLIGATIONS - 2.6%
- -------------------------------------------------------------------------------
Repurchase agreement with ABN Amro Chicago
Corp., dated 12/31/97, due 01/02/98 at 6.60%,
collateralized by U.S. Treasury notes with
various maturities to 2016, market value
$20,027 (repurchase proceeds $19,582)
19,575 19,575
-----------
OTHER ASSETS & LIABILITIES, NET - 0.4% 2,772
- -------------------------------------------------------------------------------
NET ASSETS - 100.0% $750,904
-----------
NOTES TO INVESTMENT PORTFOLIO:
- ------------------------------------------------------------------------------
(a) Non-incoming producing.
(b) Cost for federal income tax purposes is $555,143.
See notes to financial statements.
12
<PAGE>
STATEMENT OF ASSETS & LIABILITIES
DECEMBER 31, 1997 (UNAUDITED)
(in thousands except for per share amounts and footnotes)
ASSETS
Investments at value (cost $555,142) $ 728,557
Short-term obligations 19,575
-----------
748,132
Receivable for:
Fund shares sold $ 2,169
Dividends 1,034
Interest 681
Other 6 3,890
------------- -----------
Total Assets 752,022
LIABILITIES
Payable for:
Fund shares repurchased 1,048
Accrued:
Deferred Trustees fees 3
Other 67
-------------
Total Liabilities 1,118
-----------
NET ASSETS $ 750,904
===========
Net asset value & redemption price per share - Class A
($253,012/14,520) $ 17.43
===========
Maximum offering price per share - Class A
($17.43/0.9425) $ 18.49 (a)
===========
Net asset value & offering price per share - Class B
($484,403/28,182) $ 17.19 (b)
===========
Net asset value & offering price per share - Class C
($13,489/781) $ 17.28 (b)
===========
COMPOSITION OF NET ASSETS
Capital paid in $ 555,470
Undistributed net investment income 35
Accumulated net realized gains 21,984
Net unrealized appreciation 173,415
-----------
$ 750,904
===========
(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.
13
<PAGE>
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED DECEMBER 31, 1997
(UNAUDITED)
(in thousands)
INVESTMENT INCOME
Dividends $ 5,624
Interest 1,952
-----------
7,576
EXPENSES
Management fee $ 2,831
Service fee 899
Distribution fee - Class B 1,714
Distribution fee - Class C 46
Transfer agent 1,043
Bookkeeping fee 129
Trustees fee 18
Custodian fee 16
Audit fee 15
Legal fee 5
Registration fee 70
Reports to shareholders 10
Other 15 6,811
------------- -----------
Net Investment Income 765
-----------
NET REALIZED & UNREALIZED GAIN(LOSS) ON PORTFOLIO POSITIONS
Net realized gain 75,094
Net unrealized depreciation (240)
-----------
Net Gain 74,854
-----------
Increase in Net Assets from Operations $ 75,619
===========
See notes to financial statements.
14
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
Six months
ended Year ended
December 31 June 30
(in thousands) ------------- -----------
INCREASE (DECREASE) IN NET ASSETS 1997(a) 1997
Operations:
Net investment income $ 765 $ 829
Net realized gain 75,094 51,644
Net unrealized appreciation(depreciation) (240) 98,331
------------- -----------
Net Increase from Operations 75,619 150,804
Distributions:
From net investment income - Class A (600) (829)
In excess of net investment income - Class A - (133)
From net realized gains - Class A (28,096) (14,099)
From net realized gains - Class B (54,761) (26,520)
From net realized gains - Class C (1,472) (730)
------------- -----------
(9,310) 108,493
------------- -----------
Fund Share Transactions:
Receipts for shares sold - Class A 47,670 53,358
Value of distributions reinvested - Class A 26,994 14,112
Cost of shares repurchased - Class A (34,722) (57,688)
------------- -----------
39,942 9,782
------------- -----------
Receipts for shares sold - Class B 65,770 80,246
Value of distributions reinvested - Class B 51,728 25,068
Cost of shares repurchased - Class B (38,207) (69,516)
------------- -----------
79,291 35,798
------------- -----------
Receipts for shares sold - Class C 4,092 8,192
Value of distributions reinvested - Class C 1,415 689
Cost of shares repurchased - Class C (3,429) (7,781)
------------- -----------
2,078 1,100
------------- -----------
Net Increase from Fund Share
Transactions 121,311 46,680
------------- -----------
Total Increase 112,001 155,173
NET ASSETS
Beginning of period 638,903 483,730
------------- -----------
End of period (including undistributed and
net of overdistributed net investment
income of $35 and $130, respectively) $ 750,904 $ 638,903
============= ===========
(a) Class D shares were redesignated Class C shares on July 1, 1997.
Statement of Changes in Net Assets continued on following page.
See notes to financial statements.
15
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
(continued)
(Unaudited)
Six months
ended Year ended
December 31 June 30
------------- -----------
NUMBER OF FUND SHARES 1997 (a) 1997
Sold - Class A 2,551 1,488
Issued for distributions reinvested - Class A 1,536 925
Repurchased - Class A (1,855) (1,668)
------------- -----------
2,232 745
------------- -----------
Sold - Class B 3,561 1,957
Issued for distributions reinvested - Class B 2,982 1,699
Repurchased - Class B (2,066) (2,098)
------------- -----------
4,477 1,558
------------- -----------
Sold - Class C 225 210
Issued for distributions reinvested - Class C 81 46
Repurchased - Class C (188) (199)
------------- -----------
118 57
------------- -----------
(a) Class D shares were redesignated Class C shares on July 1, 1997.
See notes to financial statements.
16
<PAGE>
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997 (UNAUDITED)
NOTE 1. INTERIM FINANCIAL STATEMENTS
................................................................................
In the opinion of management of Colonial U.S. Stock 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, 1997, 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 long-term growth by investing primarily in large capitalization equities.
The Fund may issue an unlimited number of shares. The Fund offers three classes
of shares: Class A, Class B and Class C. 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. Effective
July 1, 1997, Class D shares were redesignated to Class C shares which are
subject to an annual distribution fee and a contingent deferred sales charge.
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 generally 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 for which market quotations are not readily available 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.
17
<PAGE>
Notes to Financial Statements/December 31, 1997
- --------------------------------------------------------------------------------
NOTE 2. ACCOUNTING POLICIES - CONT.
................................................................................
Determination of class net asset values and financial highlights: All income,
expenses (other than the Class B and Class C distribution fees), and 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 C net investment income per share data
reflects the distribution fee per share applicable to Class B and Class C shares
only.
Class B and Class C 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 C 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 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.
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 0.80% annually of the Fund's
average net assets.
18
<PAGE>
Notes to Financial Statements/December 31, 1997
- --------------------------------------------------------------------------------
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.
Effective October 1, 1997 and continuing through September 1998, the Transfer
Agent fee will be reduced by 0.0012% in cumulative monthly increments, resulting
in a decrease in the fee from 0.25% to 0.236% annually.
Underwriting discounts, service and distribution fees: Liberty Financial
Investments, Inc., formerly Colonial Investment Services, Inc. (the
Distributor), an affiliate of the Adviser, is the Fund's principal underwriter.
For the six months ended December 31, 1997, the Fund has been advised that the
Distributor retained net underwriting discounts of $76,152 on sales of the
Fund's Class A shares and received contingent deferred sales charges (CDSC) of
$259,041 and $195 on Class B and Class C 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 C 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 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, 1997, 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.
Investment activity: During the six months ended December 31, 1997, purchases
and sales of investments, other than short-term obligations, were $305,375,936
and $249,356,161, respectively.
19
<PAGE>
Notes to Financial Statements/December 31, 1997
- --------------------------------------------------------------------------------
NOTE 4. PORTFOLIO INFORMATION
- --------------------------------------------------------------------------------
Unrealized appreciation (depreciation) at December 31, 1997 based on cost of
investments for federal income tax purposes was:
Gross unrealized appreciation $ 186,241,665
Gross unrealized depreciation (12,827,291)
-------------
Net unrealized appreciation $ 173,414,374
=============
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 ended December 31, 1997.
20
<PAGE>
FINANCIAL HIGHLIGHTS
Selected data for a share of each class outstanding throughout each period are
as follows:
(Unaudited)
Six months ended December 31
--------------------------------------
1997
Class A Class B Class C (b)
-------- -------- --------
Net asset value -
Beginning of period $17.550 $17.370 $17.440
-------- -------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment
income (loss) (a) 0.067 (0.002) (0.002)
Net realized and
unrealized gain (a) 2.060 2.022 2.042
-------- -------- --------
Total from Investment
Operations 2.127 2.020 2.040
-------- -------- --------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.047) -- --
From net realized
gains (2.200) (2.200) (2.200)
-------- -------- --------
Total Distributions
Declared to
Shareholders (2.247) (2.200) (2.200)
-------- -------- --------
Net asset value -
End of period $17.430 $17.190 $17.280
======== ======== ========
Total return (c) 12.02% (d) 11.51% (d) 11.59% (d)
======== ======== ========
RATIOS TO AVERAGE NET ASSETS
Expenses (f) 1.43% (e) 2.18% (e) 2.18% (e)
Net investment income (f) 0.71% (e) (0.04)% (e) (0.04)% (e)
Portfolio turnover 38% (d) 38% (d) 38% (d)
Average commission rate $0.0422 $0.0422 $0.0422
Net assets at end
of period (000) $253,012 $484,403 $13,489
(a) Per share data was calculated using average shares outstanding during the
period.
(b) Class D shares were redesignated to Class C shares on July 1, 1997.
(c) Total return at net asset value assuming all distributions reinvested and
no initial sales charge or contingent deferred sales charge.
(d) Not annualized.
(e) Annualized.
(f) The benefits derived from custody credits and directed brokerage
arrangements had no impact.
21
<PAGE>
FINANCIAL HIGHLIGHTS - CONT.
Selected data for a share of each class outstanding throughout each period
are as follows:
Year ended June 30
--------------------------------------
1997
Class A Class B Class C
-------- -------- --------
Net asset value -
Beginning of period $14.470 $14.360 $14.410
-------- -------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment
income (loss) (a) 0.099 (0.015) (0.015)
Net realized and
unrealized gain (a) 4.314 4.275 4.295
-------- -------- --------
Total from Investment
Operations 4.413 4.260 4.280
-------- -------- --------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.072) -- --
In excess of net investment income (0.011) -- --
From net realized
gains (1.250) (1.250) (1.250)
-------- -------- --------
Total Distributions
Declared to
Shareholders (1.333) (1.250) (1.250)
-------- -------- --------
Net asset value -
End of period $17.550 $17.370 $17.440
======== ======== ========
Total return (c) 32.13% 31.21% 31.24%
======== ======== ========
RATIOS TO AVERAGE NET ASSETS
Expenses 1.45% (d) 2.20% (d) 2.20% (d)
Net investment income 0.65% (d) (0.10)% (d) (0.10)% (d)
Portfolio turnover 83% 83% 83%
Average commission rate (e) $0.0370 $0.0370 $0.0370
Net assets at end
of period (000) $215,680 $411,670 $11,553
(a) Per share data was calculated using average shares outstanding during the
period.
(b) Class C shares were initially offered on July 1, 1994. Per share amounts
reflect activity from that date.
(c) Total return at net asset value assuming all distributions reinvested and
no initial sales charge or contingent deferred sales charge.
(d) The benefits derived from custody credits and directed brokerage
arrangements had no impact. Prior years' ratios are net of benefits
received, if any.
(e) For fiscal years beginning on or after September 1, 1995, a fund is
required to disclose its average commission rate per share for trades on
which commissions are charged.
22
<PAGE>
FINANCIAL HIGHLIGHTS - CONT.
Year ended June 30
- -------------------------------------------------------------------------------
1996 1995
Class A Class B Class C Class A Class B Class C (b)
- -------- -------- ------- -------- -------- -------
$13.260 $13.180 $13.240 $11.460 $11.400 $11.460
- -------- -------- ------- -------- -------- -------
0.121 0.017 0.016 0.165 0.075 0.074
2.292 2.265 2.268 2.530 2.513 2.534
- -------- -------- ------- -------- -------- -------
2.413 2.282 2.284 2.695 2.588 2.608
- -------- -------- ------- -------- -------- -------
(0.118) (0.017) (0.029) (0.160) (0.073) (0.093)
- - - - - -
- -------- -------- ------- -------- -------- -------
(1.085) (1.085) (1.085) (0.735) (0.735) (0.735)
- -------- -------- ------- -------- -------- -------
(1.203) (1.102) (1.114) (0.895) (0.808) (0.828)
- -------- -------- ------- -------- -------- -------
$14.470 $14.360 $14.410 $13.260 $13.180 $13.240
======== ======== ======= ======== ======== =======
18.85% 17.91% 17.84% 24.84% 23.94% 24.01%
======== ======== ======= ======== ======== =======
1.45% (d) 2.20% (d) 2.20% (d) 1.46% 2.21% 2.21%
0.87% (d) 0.12% (d) 0.12% (d) 1.37% 0.62% 0.62%
89% 89% 89% 84% 84% 84%
$0.0461 $0.0461 $0.0461 - - -
$168,554 $306,718 $8,458 $124,171 $218,201 3,028
23
<PAGE>
FINANCIAL HIGHLIGHTS - CONT.
Year ended June 30
----------------------------------------------
1994 1993 (b)
Class A Class B Class A Class B
------- -------- ------- -------
Net asset value -
Beginning of period $11.820 $11.770 $10.000 $10.000
------- -------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment
income (a) 0.142 0.053 0.103 (c) 0.020 (c)
Net realized and unrealized
gain (loss) (a) (0.119) (0.122) 1.784 1.763
------- -------- ------- -------
Total from Investment
Operations 0.023 (0.069) 1.887 1.783
------- -------- ------- -------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment
income (0.138) (0.056) (0.067) (0.013)
From net realized
gains (0.245) (0.245) - -
------- -------- ------- -------
Total Distributions
Declared to
Shareholders (0.383) (0.301) (0.067) (0.013)
------- -------- ------- -------
Net asset value -
End of period $11.460 $11.400 $11.820 $11.770
======= ======== ======== ========
Total return (d) 0.05% (0.71)% 18.90% (e) 17.84% (e)
======= ======== ======== ========
RATIOS TO AVERAGE NET ASSETS
Expenses 1.49% 2.24% 1.50% 2.25%
Fees waived by the
Adviser - - 0.01% 0.01%
Net investment
income 1.19% 0.44% 0.93% 0.18%
Portfolio turnover 117% 117% 98% 98%
Net assets at end
of period (000) $97,180 $150,121 $44,009 $89,737
(a) Per share data was calculated using average shares outstanding during the
period.
(b) The Fund commenced investment operations on July 1, 1992.
(c) Net of fees and expenses waived or borne by the Adviser which amounted to
$0.001 and $0.001, respectively.
(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.
24
<PAGE>
SHAREHOLDER SERVICES
TO MAKE INVESTING EASIER
Colonial has one of the most extensive selections of shareholder services
available. Your financial advisor 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 on
most funds; $25 for an IRA account.
Free Exchanges(1): Exchange all or part of your account into the same share
class of another Colonial fund, by phone or mail.
Easy Access to Your Money(1): 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 calendar day of each month unless the 10th falls on a
non-business day or the first business day of the week. If this occurs, the
payable date will be the previous business day.
Dividends and capital gains must be reinvested.
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.
Colonial Retirement Plans: Choose from a broad range of retirement plans,
including IRAs.
(1) 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.
Exchanges are not available on all funds. Investors who purchase Class B or
Class C shares (for applicable funds), or $1 million or more of Class A shares,
may be subject to a contingent deferred sales charge.
25
<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:
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 *
To speak with a shareholder services representative about your account, call
Monday to Friday, 8:00 a.m. to 8:00 p.m. ET, and Saturdays from February through
mid-April, 10:00 a.m. to 2:00 p.m. ET.
Colonial Telephone Transaction Department - 1-800-422-3737
To purchase, exchange or sell shares by telephone, call Monday to Friday, 9:00
a.m. to 7:00 p.m. ET. Transactions received after the close of the New York
Stock Exchange will receive the next business day's closing price.
Literature - 1-800-426-3750
To request literature on any Colonial fund, call Monday to Friday, 8:30 a.m. to
6:30 p.m. ET.
BY MAIL
Colonial Investors Service Center, Inc.
P.O. Box 1722
Boston, MA 02105-1722
26
<PAGE>
IMPORTANT INFORMATION ABOUT THIS REPORT
The Transfer Agent for Colonial U.S. Stock Fund is:
Colonial Investors Service Center, Inc.
P.O. Box 1722
Boston, MA 02105-1722
1-800-345-6611
Colonial U.S. Stock Fund mails one shareholder report to each shareholder
address. If you would like more than one report, please call Colonial at
1-800-426-3750 and additional reports will be sent to you.
This report has been prepared for shareholders of Colonial U.S. Stock Fund. 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.
27
<PAGE>
- --------------------------------------------------------------------------------
TRUSTEES
ROBERT J. BIRNBAUM
Retired (formerly Special Counsel, Dechert, Price & Rhoads; President and Chief
Operating Officer, New York Stock Exchange, Inc.)
TOM BLEASDALE
Retired (formerly Chairman of the Board and Chief Executive Officer, Shore Bank
& Trust Company)
LORA S. COLLINS
Attorney (formerly Attorney, Kramer, Levin, Naftalis, Nessen, Kamin & Frankel)
JAMES E. GRINNELL
Private Investor (formerly Senior Vice President-Operations, The Rockport
Company)
WILLIAM D. IRELAND, JR.
Retired (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
Partner, Development Capital, L.L.C. (formerly Dean, College of Business and
Management, University of Maryland; Dean, Simon Graduate School of Business,
University of Rochester; Chairman and Chief Executive Officer, CS First Boston
Merchant Bank; and President and Chief Executive Officer, The First Boston
Corporation)
JAMES L. MOODY, JR.
Retired (formerly Chairman of the Board and 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
Retired Partner, Peat Marwick Main & Co. (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
[LOGO] LIBERTY FINANCIAL INVESTMENTS, INC. (C) 1998
Distributor for Colonial Funds, Stein Roe Advisor Funds and Newport Funds
One Financial Center, Boston, MA 02111-2621
SF-03/652E-1297 M (2/98) 98/75
