INVESTMENT PORTFOLIO
JUNE 30, 1998 (IN THOUSANDS)
<TABLE>
<CAPTION>
COMMON STOCKS - 96.6% SHARES VALUE
- ------------------------------------------------------------------------------
<S> <C> <C>
CONSTRUCTION - 4.5%
BUILDING CONSTRUCTION
Standard Pacific Corp. 10 $ 208
-----------
.............................................................................
FINANCE, INSURANCE & REAL ESTATE - 3.3%
DEPOSITORY INSTITUTIONS - 1.5%
First Union Corp. 1 68
-----------
INSURANCE CARRIERS - 1.0%
FPA Medical Management, Inc. 1 1
Loews Corp. 1 44
-----------
45
-----------
NONDEPOSITORY CREDIT INSTITUTIONS - 0.8%
Aames Financial Corp. (a) 3 41
-----------
.............................................................................
MANUFACTURING - 24.2%
APPAREL - 0.9%
Nautica Enterprises, Inc. (a) 2 43
-----------
CHEMICALS & ALLIED PRODUCTS - 3.6%
Serologicals Corp. (a) 1 45
Watson Pharmaceuticals, Inc. (a) 3 122
-----------
167
-----------
COMMUNICATIONS EQUIPMENT - 5.5%
Comverse Technology, Inc. (a) 3 145
Inter-Tel, Inc. 2 26
Lucent Technologies, Inc. 1 83
-----------
254
-----------
ELECTRONIC COMPONENTS - 2.4%
SCI Systems, Inc. (a) 3 109
-----------
FOOD & KINDRED PRODUCTS - 1.1%
Interstate Bakeries Corp. 2 53
-----------
HOUSEHOLD APPLIANCES - 1.0%
Helen of Troy Ltd. (a) 2 44
-----------
MACHINERY & COMPUTER EQUIPMENT - 4.2%
Compaq Computer Corp. 1 40
</TABLE>
6
<PAGE>
Investment Portfolio/June 30, 1998
- ------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
SPS Technologies, Inc. (a) 1 $ 47
Tyco International Ltd. 2 107
-----------
194
-----------
MEASURING & ANALYZING INSTRUMENTS - 2.7%
Respironics, Inc. (a) 5 73
Sybron International Corp. Wisconsin (a) 2 51
-----------
124
-----------
PRINTING & PUBLISHING - 1.8%
Harte-Hanks Communications 1 36
Hollinger International, Inc. 3 48
-----------
84
-----------
STONE, CLAY, GLASS & CONCRETE - 1.0%
Lone Star Industries, Inc. 1 46
-----------
.............................................................................
RETAIL TRADE - 7.9%
APPAREL & ACCESSORY STORES - 1.0%
St. John Knits, Inc. 1 46
-----------
FOOD STORES - 1.0%
General Nutrition Companies, Inc. 2 47
-----------
GENERAL MERCHANDISE STORES - 2.3%
Ames Department Stores, Inc. (a) 4 105
-----------
MISCELLANEOUS RETAIL - 2.4%
Michaels Stores, Inc. (a) 2 53
Office Depot, Inc. (a) 2 57
-----------
110
-----------
RESTAURANTS - 1.2%
Showbiz Pizza Time, Inc. (a) 1 56
-----------
.............................................................................
SERVICES - 49.1%
BUSINESS SERVICES - 12.1%
Advo, Inc. 5 132
Cendant Corp. (a) 3 55
Concord EFS, Inc. 4 98
Interim Services, Inc. (a) 2 51
Norrell Corp. 2 36
Robert Half International, Inc. (a) 3 151
Romac International, Inc. (a) 1 37
-----------
560
-----------
</TABLE>
7
<PAGE>
<TABLE>
<CAPTION>
Investment Portfolio/June 30, 1998
- ------------------------------------------------------------------------------
COMMON STOCKS - CONT. SHARES VALUE
- ------------------------------------------------------------------------------
<S> <C> <C>
SERVICES - CONT.
COMPUTER RELATED SERVICES - 11.4%
Analysts International Corp. 6 $ 158
Autodesk, Inc. 2 73
Cadence Design Systems, Inc. (a) 2 75
HBO & Co. 3 113
Physician Computer Network, Inc. (a) 6 2
Renters Choice, Inc. (a) 4 108
-----------
529
-----------
COMPUTER SOFTWARE - 18.4%
BMC Software, Inc. (a) 2 83
Computer Horizons Corp. (a) 1 35
Computer Task Group, Inc. 2 70
Hyperion Software Corp. (a) 2 66
Microsoft Corp. (a) 2 217
Network Associates, Inc. (a) 2 109
Peoplesoft, Inc. (a) 4 169
Platinum Technology, Inc. (a) 1 37
Symantec Corp. (a) 1 29
VERITAS Software Corp. (a) 1 37
-----------
852
-----------
ENGINEERING, ACCOUNTING, RESEARCH & MANAGEMENT - 1.2%
Paychex, Inc. 1 55
-----------
HEALTH SERVICES - 3.1%
Curative Health Services, Inc. (a) 1 20
PhyCor, Inc. (a) 3 42
Total Renal Care Holdings, Inc. (a) 2 83
-----------
145
-----------
HOTELS, CAMPS & LODGING - 0.9%
Fairfield Communities, Inc. (a) 2 40
-----------
PERSONAL SERVICES - 2.0%
Stewart Enterprises, Inc. 3 91
-----------
.............................................................................
TRANSPORTATION, COMMUNICATION, ELECTRIC,
GAS & SANITARY SERVICES - 2.8%
CABLE - 1.4%
United Video Satellite Group, Inc. (a) 2 63
-----------
WATER TRANSPORTATION - 1.4%
Tidewater, Inc. 2 66
-----------
</TABLE>
8
<PAGE>
<TABLE>
<CAPTION>
Investment Portfolio/June 30, 1998
- ------------------------------------------------------------------------------
<S> <C> <C>
WHOLESALE TRADE - 4.9%
DURABLE GOODS - 4.2%
Anixter International, Inc. (a) 5 $ 92
PSS World Medical, Inc. 3 51
VWR Corp. 2 52
-----------
195
-----------
NONDURABLE GOODS - 0.7%
AmeriSource Health Corp., Class A (a) (b) 30
-----------
TOTAL COMMON STOCKS (cost of $3,216)(c) 4,470
-----------
SHORT TERM OBLIGATIONS - 2.8% PAR
-----------------------------------------------------------------------------
Repurchase agreement ABN AMRO Chicago Corp.,
dated 6/30/98, due 07/01/98 at 6.100%
collateralized by U.S. Treasury notes and bill with
various maturities to 2027, market value $133
(repurchase proceeds $130) $ 130 130
-----------
OTHER ASSETS & LIABILITIES, NET - 0.6% 25
-----------------------------------------------------------------------------
NET ASSETS - 100.0% $ 4,625
===========
</TABLE>
NOTES TO INVESTMENT PORTFOLIO:
-----------------------------------------------------------------------------
(a) Non-income producing.
(b) Rounds to less than one.
(c) Cost for federal income tax purposes is the same.
See notes to financial statements.
9
<PAGE>
STATEMENT OF ASSETS & LIABILITIES
JUNE 30, 1998
<TABLE>
<CAPTION>
(in thousands except for per share amounts and footnotes)
<S> <C> <C>
ASSETS
Investments at value (cost $3,216) $ 4,470
Short-term obligations 130
-------------
4,600
Cash $ 1
Receivable for:
Dividends 1
Deferred organization expenses 29 31
-------------- -------------
Total Assets 4,631
LIABILITIES
Payable to Adviser 4
Accrued:
Deferred Trustee fees 1
Other 1
--------------
Total Liabilities 6
-------------
NET ASSETS $ 4,625
=============
Net asset value & redemption price per share -
Class A ($3,867/269) $ 14.39
=============
Maximum offering price per share - Class A
($14.39/0.9425) $ 15.27(a)
=============
Net asset value & offering price per share -
Class B ($379/27) $ 14.15(b)
=============
Net asset value & offering price per share -
Class C ($379/27) $ 14.15(b)
=============
COMPOSITION OF NET ASSETS
Capital paid in $ 3,264
Overdistributed net investment income (2)
Accumulated net realized gain 109
Net unrealized appreciation 1,254
-------------
$ 4,625
=============
</TABLE>
(a) On sales of $50,000 or more the offering price is reduced.
(b) Redemption price per share is equal to net asset value less any applicable
contingent deferred sales charge.
See notes to financial statements.
10
<PAGE>
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED JUNE 30, 1998
<TABLE>
<S> <C> <C>
(in thousands)
INVESTMENT INCOME
Dividends $ 9
Interest 13
-------------
Total investment income 22
EXPENSES
Management fee $ 36
Service fee 11
Distribution fee - Class B 3
Distribution fee - Class C 3
Transfer agent 10
Bookkeeping fee 27
Trustees fee 9
Custodian fee 2
Audit fee 13
Legal fee 4
Registration fee 30
Reports to shareholders 3
Amortization of deferred
organization expenses 11
Other 4
--------------
166
Fees and expenses waived or borne
by the Adviser (94) 72
-------------- -------------
Net Investment Loss (50)
-------------
NET REALIZED & UNREALIZED GAIN ON PORTFOLIO POSITIONS
Net realized gain 256
Net unrealized appreciation during the period 610
--------------
Net Gain 866
-------------
Increase in Net Assets from Operations $ 816
=============
</TABLE>
See notes to financial statements.
11
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
(in thousands) Year ended June 30
------------------------
INCREASE (DECREASE) IN NET ASSETS 1998 (a) 1997
<S> <C> <C>
Operations:
Net investment loss $ (50) $ (39)
Net realized gain 256 194
Net unrealized appreciation 610 250
------- -------
Net Increase from Operations 816 405
Distributions:
From net investment income - Class A -- (1)
From realized gain - Class A (227) (4)
From realized gain - Class B (23) (b)
From realized gain - Class C (23) (b)
------- -------
543 400
------- -------
Fund Share Transactions:
Receipts for shares sold - Class A 8 27
Value of distributions reinvested - Class A 227 5
Cost of shares repurchased - Class A (12) (9)
------- -------
223 23
------- -------
Receipts for shares sold - Class B -- --
Value of distributions reinvested - Class B 23 (b)
Cost of shares repurchased - Class B -- --
------- -------
23 --
------- -------
Receipts for shares sold - Class C -- --
Value of distributions reinvested - Class C 23 (b)
Cost of shares repurchased - Class C -- --
------- -------
23 --
------- -------
Net Increase from Fund Share
Transactions 269 23
------- -------
Total Increase 812 423
NET ASSETS
Beginning of period 3,813 3,390
------- -------
End of period (net of overdistributed
net investment income of $2 and $1,
respectively) $ 4,625 $ 3,813
======= =======
</TABLE>
(a) Class D shares were redesignated Class C shares on July 1, 1997.
(b) Rounds to less than one.
Continued on next page.
See notes to financial statements.
12
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
(continued)
<TABLE>
<CAPTION>
Year ended June 30
------------------------
1998 (a) 1997
<S> <C> <C>
NUMBER OF FUND SHARES
Sold - Class A 1 2
Issued for distributions reinvested - Class A 17 1
Repurchased - Class A (1) (1)
-------- --------
17 2
-------- --------
Sold - Class B -- --
Issued for distributions reinvested - Class B 2 (b)
Repurchased - Class B -- --
-------- --------
2 (b)
-------- --------
Sold - Class C -- --
Issued for distributions reinvested - Class C 2 (b)
Repurchased - Class C -- --
-------- --------
2 (b)
-------- --------
</TABLE>
(a) Class D shares were redesignated Class C shares on July 1, 1997.
(b) Rounds to less than one.
See notes to financial statements.
13
<PAGE>
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1998
NOTE 1. ACCOUNTING POLICIES
ORGANIZATION: Colonial Aggressive Growth Fund (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 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 Class C shares. Class C shares are
subject to a contingent deferred sales charge on redemptions made within one
year after purchase and an annual 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 generally 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.
The value of all assets and liabilities quoted in foreign currencies are
translated into U.S. dollars at that day's exchange rates.
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 (losses) are based upon the specific identification
method for both financial statement and federal income tax purposes.
DETERMINATION OF CLASS NET ASSET VALUES AND FINANCIAL HIGHLIGHTS: All income,
expenses (other than the Class B and Class 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.
14
<PAGE>
Notes to Financial Statements/June 30, 1998
- -------------------------------------------------------------------------------
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 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
fee 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.
INTEREST INCOME, DEBT DISCOUNT AND PREMIUM: Interest income is recorded on the
accrual basis. Original issue discount is accreted to interest income over the
life of a security with a corresponding increase in the cost basis; premium and
market discount are not amortized or accreted.
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 (except for certain foreign
securities which are recorded as soon after ex-date as the Fund becomes aware of
such), net of nonrebatable tax withholdings. Where a high level of uncertainty
as to collection exists, income on securities is recorded net of all tax
withholdings with any rebates recorded when received. 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.
15
<PAGE>
Notes to Financial Statements/June 30, 1998
- ----------------------------------------------------------------------------
NOTE 2. FEES AND COMPENSATION PAID TO AFFILIATES
- ---------------------------------------------------------------------------
MANAGEMENT FEE: Colonial Management Associates, Inc. (the Adviser) is the
investment Adviser of the Fund and furnishes accounting and other services and
office facilities for a monthly fee equal to 0.85% annually of the Fund's
average net assets.
BOOKKEEPING FEE: The Adviser provides bookkeeping and pricing services for
$27,000 per year plus 0.035% of the Fund's average net assets over $50 million.
TRANSFER AGENT: Colonial Investors Service Center, Inc. (the Transfer Agent), an
affiliate of the Adviser, provides shareholder services for a monthly fee equal
to 0.25% annually of the Fund's average net assets and receives reimbursement
for certain out-of-pocket expenses.
Effective October 1, 1997 and continuing through September 1998, the Transfer
Agent fee will be reduced by .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 Funds
Distributor, Inc., formerly Liberty Financial Investments, Inc., (the
Distributor), a subsidiary of the Adviser, is the Fund's principal underwriter.
During the year ended June 30, 1998, 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
C share redemptions.
The Fund has adopted a 12b-1 plan which requires the payment of a service fee to
the Distributor 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
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.
16
<PAGE>
Notes to Financial Statements/June 30, 1998
- ----------------------------------------------------------------------------
NOTE 3. PORTFOLIO INFORMATION
- ----------------------------------------------------------------------------
INVESTMENT ACTIVITY: During the year ended June 30, 1998, purchases and sales of
investments, other than short-term obligations, were $3,046,000 and $2,812,256,
respectively.
Unrealized appreciation (depreciation) at June 30, 1998, based on cost of
investments for both financial statement and federal income tax purposes was:
<TABLE>
<S> <C>
Gross unrealized appreciation $ 1,489,586
Gross unrealized depreciation (235,025)
--------------
Net unrealized appreciation $ 1,254,561
===============
</TABLE>
OTHER: The Fund may focus its investments in certain industries, subjecting it
to greater risk than a fund that is more diversified.
NOTE 4. OTHER RELATED PARTY TRANSACTIONS
- -------------------------------------------------------------------------------
At June 30, 1998, Keyport Life Insurance Company owned 99.6% of the Fund's Class
A shares outstanding and 100% of the Fund's Class B and Class C shares
outstanding.
NOTE 5. SHAREHOLDER MEETING (UNAUDITED)
- -------------------------------------------------------------------------------
On July 7, the Special Meeting of Shareholders was held to approve a new
Management Agreement with Stein Roe & Farnham Incorporated. On June 12, 1998,
the record date for the meeting, the Fund had outstanding 322,250 shares of
beneficial interest. The votes cast at the meeting were as follows:
Approval of a new Management Agreement with Stein Roe and Farnham, Incorporated:
<TABLE>
<CAPTION>
For Against Broker Non-Votes
<S> <C> <C> <C>
321,632 - -
</TABLE>
The new management Agreement will be effective at such time as Colonial
Management Associates, Inc. and Stein Roe & Farnham Incorporated agree.
17
<PAGE>
FINANCIAL HIGHLIGHTS
Selected data for a share of each class outstanding throughout each period are
as follows:
<TABLE>
<CAPTION>
Year ended June 30
------------------------------------------------
1998
Class A Class B Class C(f)
---------- ---------- ----------
<S> <C> <C> <C>
Net asset value -
Beginning of period $ 12.650 $ 12.540 $ 12.540
========== ========== ==========
INCOME FROM INVESTMENT OPERATIONS:
Net investment
loss (a)(b) (0.143) (0.244) (0.244)
Net realized and
unrealized gain 2.783 2.754 2.754
---------- ---------- ----------
Total from Investment
Operations 2.640 2.510 2.510
---------- ---------- ----------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net realized gains (0.900) (0.900) (0.900)
---------- ---------- ----------
Net asset value -
End of period $ 14.390 $ 14.150 $ 14.150
========== ========== ==========
Total return (c)(d) 21.56% 20.68% 20.68%
========== ========== ==========
RATIOS TO AVERAGE NET ASSETS
Expenses (e) 1.55% 2.30% 2.30%
Fees and expenses waived
or borne by the Adviser (e) 2.21% 2.21% 2.21%
Net investment loss (e) (1.04%) (1.79%) (1.79%)
Portfolio turnover 70% 70% 70%
Net assets at end
of period (000) $ 3,867 $ 379 $ 379
</TABLE>
(a) Net of fees and expenses waived or borne by the Adviser which amounted
to:
$ 0.301 $ 0.301 $ 0.301
(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) The benefits derived from custody credits and directed brokerage
arrangements had no impact.
(f) Class D shares were redesignated Class C shares on July 1, 1997.
- -------------------------------------------------------------------------------
Federal Income Tax Information (unaudited)
For the fiscal year ended June 30,1998, the Fund earned $171,969 of long term
capital gains of which $14,887 and $157,082 are 28% and 20% rate gains,
respectively.
- -------------------------------------------------------------------------------
18
<PAGE>
FINANCIAL HIGHLIGHTS
Selected data for a share of each class outstanding throughout each period are
as follows:
<TABLE>
<CAPTION>
Year ended June 30
------------------------------------------------
1997
Class A Class B Class C
---------- ---------- ----------
<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) (0.114) (0.200) (0.200)
Net realized and
unrealized gain 1.484 1.475 1.475
---------- ---------- ----------
Total from Investment
Operations 1.370 1.275 1.275
---------- ---------- ----------
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 $ 12.650 $ 12.540 $ 12.540
========== ========== ==========
Total return (c)(d) 12.14% 11.31% 11.31%
========== ========== ==========
RATIOS TO AVERAGE NET ASSETS
Expenses (e) 1.55% 2.30% 2.30%
Fees and expenses waived
or borne by the Adviser (e) 2.57% 2.57% 2.57%
Net investment loss (e) (0.99%) (1.74%) (1.74%)
Portfolio turnover 54% 54% 54%
Net assets at end
of period (000) $ 3,185 $ 314 $ 314
</TABLE>
(a) Net of fees and expenses waived or borne by the Adviser which amounted
to:
$ 0.297 $ 0.297 $ 0.297
(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) The benefits derived from custody credits and directed brokerage
arrangements had no impact.
19
<PAGE>
FINANCIAL HIGHLIGHTS
Selected data for a share of each class outstanding throughout each period are
as follows:
<TABLE>
<CAPTION>
Period ended June 30
------------------------------------------------
1996 (c)
Class A Class B Class C
---------- ---------- ----------
<S> <C> <C> <C>
Net asset value -
Beginning of period $ 10.110 $ 10.110 $ 10.110
========== ========== ==========
INCOME FROM INVESTMENT OPERATIONS:
Net investment
loss (a)(b) (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)(f) 11.77% 11.57% 11.57%
========== ========== ==========
RATIOS TO AVERAGE NET ASSETS
Expenses (g)(h) 1.55% 2.30% 2.30%
Fees and expenses waived
or borne by the Adviser (g)(h) 1.38% 1.38% 1.38%
Net investment loss (g)(g) (0.58%) (1.33%) (1.33%)
Portfolio turnover (f) 0% 0% 0%
Net assets at end
of period (000) $ 2,826 $ 282 $ 282
</TABLE>
(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.
20
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE TRUSTEES OF COLONIAL TRUST VI AND THE SHAREHOLDERS OF COLONIAL AGGRESSIVE
GROWTH FUND
In our opinion, the accompanying statement of assets and liabilities, including
the investment portfolio, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Colonial Aggressive Growth Fund
(the "Fund") (a series of Colonial Trust VI) at June 30, 1998, the results of
its operations, the changes in its net assets and the financial highlights for
the periods indicated, in conformity with generally accepted accounting
principles. These financial statements and the financial highlights (hereafter
referred to as "financial statements") are the responsibility of the Fund's
management; our responsibility is to express an opinion on these financial
statements based on our audits. We conducted our audits of these financial
statements in accordance with generally accepted auditing standards which
require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of portfolio positions at June 30, 1998 by correspondence with the
custodian provide a reasonable basis for the opinion expressed above.
PricewaterhouseCoopers LLP
Boston, Massachusetts
August 11, 1998
21
