COLONIAL SMALL CAP VALUE FUND Semiannual report
December 31, 1997
[GRAPHIC OMITTED]
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Not FDIC May Lose Value
Insured No Bank Guarantee
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COLONIAL SMALL CAP VALUE FUND HIGHLIGHTS
JULY 1, 1997 - DECEMBER 31, 1997
Investment Objective: Colonial Small Cap Value Fund seeks long-term growth by
investing primarily in smaller capitalization equities.
The Fund is Designed to Offer:
o Diversification
o Dynamic investment opportunities
o Disciplined investment strategy
Portfolio Manager Commentary: "Volatility in the U.S. stock market during the
second half of the period created buying opportunities in selected small company
stocks. We were able to purchase stocks with good growth potential at attractive
prices in several sectors of the market. This fit in perfectly with our
value-oriented investment strategy and contributed to above-average returns
during the period." -- James Haynie & Michael Rega
Colonial Small Cap Value Fund Performance(1)
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Class A(1) Class B Class C(2)
Inception dates 7/25/86 11/9/92 1/15/96
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6-month total returns, assuming 11.16% 10.75% 10.81%
reinvestment of all distributions
and no sales charge or contingent
deferred sales charge (CDSC)
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Net asset value per share on 12/31/97 $31.97 $30.65 $31.50
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(1) The Fund was formerly known as Colonial Small Stock Fund.
(2) Effective July 1, 1997, Class D shares were redesignated Class C shares.
Top Five Holdings(3) Top Five Sectors(3)
(as of 12/31/97) (as of 12/31/97)
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1. Fremont General Corp. ......... 2.0% 1. Consumer Cyclicals .... 17.6%
2. Furniture Brands 2. Financials ............ 15.9%
International, Inc. ........... 1.7% 3. Technologies .......... 12.3%
3. ESC Medical Systems Ltd. ...... 1.4% 4. Health Care ........... 12.0%
4. Universal Health 5. Capital Goods ......... 8.8%
Services, Inc. ................ 1.4%
5. Valassis Communications, Inc... 1.2%
(3) Because the Fund is actively managed, holdings and sectors will change.
Holding and sector weightings are calculated as a percent of total net assets.
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 used on this page are based
upon Colonial's defined criteria as used in the investment process.
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PRESIDENT'S MESSAGE
TO FUND SHAREHOLDERS
[PHOTO]
I am pleased to present the semiannual report for Colonial Small Cap Value 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 8000 mark, on
its way to a peak for the year of 8259 on August 6. Meanwhile, currency
devaluations in Asia began to create concern for investors in U.S. stocks. 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 the next day, recouping 337 points, the Dow's largest
single-day point gain in history. Between October 27 and year-end, the Dow
rebounded 10.4% and the Standard & Poor's 500 Index gained 10.7%. However, the
Russell 2000 Index(R) was up only 4.0%, illustrating the market's dominance by
larger companies during this period as investors flocked to larger stocks.
Small company stocks were also held back by investors' reluctance to own
technology stocks, a sizable component of the small stock universe and one of
the few that does significant business overseas by either supplying or competing
with Asian manufacturers.
While the smaller companies that comprise the Fund's assets lagged larger
companies during the latter part of the period, they experienced lower
volatility overall, losing less of their value during the market sell-off in
October than larger stocks. As a result, all major U.S. market indexes,
including the Dow, the S&P 500, the NASDAQ and the Russell 2000 gained over 20%
during 1997.
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 that
growth in such an environment.
Active participation in the small-cap market offers an opportunity to diversify
your equity portfolio as well as to take advantage of good growth prospects.
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 Index(R) 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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Portfolio Management Report
James Haynie and Michael Rega, are portfolio co-managers of Colonial Small Cap
Value Fund and are vice presidents of Colonial Management Associates, Inc.
Volatile investment environment offered opportunity
The first half of the period was strong for both small and large company stocks.
However, the Asian currency crisis had a negative effect on the markets during
the second half of the period. In the U.S., many smaller company stocks declined
over 10% despite a lack of change in their fundamental investment
characteristics. We took this opportunity to buy stocks that we believed offered
good growth prospects. For example, Valassis Communications is a company that
prints newspaper inserts. Despite a positive economic environment, the stock
lost about 15% of its value before we purchased it in October. Since then, the
stock price has risen over 30% to a new high.
Shareholders continued to enjoy attractive performance
The Fund outperformed both the Russell 2000 Index, a benchmark that tracks the
performance of small company stocks traded on the NASDAQ and the American and
New York Stock Exchanges, and its Lipper peer group average. For the six-month
period, the Fund generated a total return of 11.16% for Class A shares, based on
net asset value while the Russell 2000 returned 11.04% and the Lipper peer group
average returned 10.62%. We attribute this performance to our core investment
strategy of value-oriented stock selection across a broad range of market
sectors.
Core investment strategy identifies current and future value
While the Fund outperformed its peer group average, it had some disappointing
investments in the technology sector which represented about 14% of the Fund's
assets on December 31, 1997. While this sector performed well through the first
half of the period, these stocks were particularly hard hit during the general
market sell-off in the second half. Energy stocks also underperformed as a
result of declining oil prices and a lack of supply disruption. However, we
believe that energy service stocks offer significant value. The process of
identifying and exploring potential oil fields and bringing oil to market takes
place over many years. Increased drilling activity as of late coupled with
substantial increases in capital spending for exploratory purposes by large oil
producers is setting the stage for greater earnings growth and improved stock
prices over the longer term.
On the other hand, the Fund benefited from investments in the financial,
consumer cyclical and health care sectors. Freemont General, a financial
services company, again represented the Fund's largest holding. A relatively low
interest rate environment continued to fuel strong earnings growth. Investments
in the health care sector included vitamin distributors such as NBTY, Inc.,
marketer of the Nature's Bounty product line. These stocks benefited from
America's increasing use of vitamins, nutritional supplements and other
alternative approaches to "wellness." Companies in this sector are experiencing
rapid revenue growth and have excellent earnings growth prospects.
Positive outlook for small company 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 expect that there may be some negative effect on
worldwide economic growth, we cannot predict the extent of the impact at this
time. We
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believe that small-cap stocks are among the most attractively valued sectors of
the market at this time and because small caps are not generally multinational
companies, a lack of international exposure reduces their susceptibility to
devaluating currencies and thus may reduce their earnings risk in this
particular environment. In our opinion, small-cap stocks continue to offer an
attractive risk and reward relationship and deserve an active role in a
diversified investment portfolio.
Colonial Small Cap Value Fund Investment Performance vs. The Russell 2000 Index
Change in Value of $10,000 from 12/31/87 - 12/31/97
Based on NAV and POP for Class A Shares
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AS OF DATE CSCVF NAV MOP Russell 2000 IX
Dec 31, 87 10000 9425 10000
Mar 31, 88 12210 11508 11909
Jun 30, 88 13324 12558 12697
Sep 30, 88 13025 12276 12581
Dec 31, 88 12724 11992 12502
Mar 31, 89 14028 13221 13466
Jun 30, 89 14399 13571 14323
Sep 30, 89 14920 14062 15288
Dec 31, 89 14224 13406 14535
Mar 31, 90 14064 13256 14209
Jun 30, 90 14469 13637 14748
Sep 3O, 90 11076 10439 11140
Dec 31, 90 10860 10236 11704
Mar 31, 91 13019 12271 15184
Jun 30, 91 12394 11681 14943
Sep 3O, 91 12758 12024 16166
Dec 31, 91 12919 12176 17093
Mar 31, 92 15115 14246 18373
Jun 30, 92 13208 12448 17116
Sep 30, 92 13304 12539 17608
Dec 31, 92 15586 14690 20240
Mar 31, 93 16979 16002 21105
Jun 30, 93 16989 16012 21567
Sep 30, 93 17921 16891 23453
Dec 31, 93 18521 17456 24061
Mar 31, 94 18735 17658 23420
Jun 30, 94 17857 16830 22504
Sep 30, 94 19485 18365 24067
Dec 31, 94 19689 18557 23622
Mar 31, 95 21199 19980 24713
Jun 30, 95 23845 22474 27029
Sep 30, 95 27466 25886 29699
Dec 31, 95 27081 25524 30343
Mar 31, 96 29011 27343 31891
Jun 30, 96 29880 28162 33486
Sep 30, 96 30557 28800 33600
Dec 31, 96 32050 30207 35348
Mar 31, 97 30251 28511 33520
Jun 30, 97 35719 33665 38954
Sep 30, 97 40907 38555 44751
Dec 31, 97 39705 37422 43253
A $10,000 investment in Class B shares made on November 9, 1992 (inception) at
net asset value (NAV) would have been valued at $27,445 on December 31, 1997.
The same investment after deducting the applicable contingent deferred sales
charges (CDSC) would have grown to $27,345 on December 31, 1997. A $10,000
investment in Class C shares made on January 15, 1996 (inception), at NAV would
have been valued at $15,391 on December 31, 1997. The Russell 2000 Index is an
unmanaged index that tracks the performance of small capitalization stocks
traded on the New York Stock Exchange, the American Stock Exchange and the
NASDAQ. Unlike mutual funds, indexes are not investments, do not incur fees or
charges and are not professionally managed.
Average Annual Total Returns
As of December 31, 1997
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Class A Shares Class B Shares Class C Shares(1)
Inception 7/25/86 11/9/92 1/15/96
NAV POP NAV w/CDSC NAV w/CDSC
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1 year 23.88% 16.76% 22.92% 17.92% 22.97% 21.97%
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5 years 20.56 19.15 19.68 19.49 -- --
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10 years/Life 14.78 14.11 21.67 21.58 24.55 24.55
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Since policy change(2) 22.79 21.39 -- -- -- --
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(1) On July 1, 1997 Class D shares were redesignated Class C shares.
(2) Investment policies changed November 2, 1992.
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%. The applicable CDSC for Class B shares is 5% for 1 year, 2% for five
years and 1% since inception. The applicable CDSC for Class C shares is 1% for 1
year.
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INVESTMENT PORTFOLIO
DECEMBER 31, 1997 (UNAUDITED, IN THOUSANDS)
COMMON STOCKS - 92.7% SHARES VALUE
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CONSTRUCTION - 0.7%
Building Construction - 0.6%
Toll Brothers, Inc. (a) 121 $ 3,244
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Special Trade Contractors - 0.1%
Apogee Enterprises, Inc. 60 713
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FINANCE, INSURANCE & REAL ESTATE - 16.7%
Depository Institutions - 2.8%
ALBANK Financial Corp. 85 4,372
GBC Bancorp 50 3,188
Peoples Heritage Financial Group, Inc. 103 4,735
St. Paul Bancorp, Inc. 100 2,625
Wachovia Corp. 21 1,706
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16,626
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Holding & Other Investment Companies - 0.8%
Inacom Corp. (a) 167 4,686
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Insurance Carriers - 9.3%
American Bankers Insurance Group, Inc. 84 3,859
Capital Re Corp. 83 5,157
Conseco, Inc. 67 3,056
Delphi Financial Group, Inc. (a) 76 3,420
Enhance Financial Services Group, Inc. 79 4,737
Fidelity National Finance, Inc. 141 4,382
Fremont General Corp. 213 11,662
Horace Mann Educators Corp. 130 3,697
NAC Re Corp. 67 3,290
Orion Capital Corp. 65 3,007
USBANCorp., Inc. 28 2,044
Vesta Insurance Group, Inc. 99 5,872
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54,183
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Nondepository Credit Institutions - 1.8%
Aames Financial Corp. 182 2,368
Capstead Mortgage Corp. 83 1,655
Consumer Portfolio Services, Inc. (a) 115 1,105
Imperial Credit Industries, Inc. (a) 76 1,554
Resource Bancshares Mortgage Group, Inc. 147 2,471
The Money Store, Inc. 77 1,627
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10,780
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Real Estate Investment Trusts - 0.7%
Imperial Credit Mortgage Holdings 217 3,879
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Investment Portfolio/December 31, 1997
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Security Brokers & Dealers - 1.3%
Jeffries Group, Inc. 78 $ 3,193
Raymond James Financial, Inc. 108 4,294
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7,487
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MANUFACTURING - 33.7%
Apparel - 1.1%
Kellwood Co. 79 2,373
Nautica Enterprises, Inc. (a) 184 4,278
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6,651
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Chemicals & Allied Products - 4.1%
Dexter Corp. 58 2,509
Ferro Corp. 223 5,423
Fuller (H.B.) Co. 46 2,277
Goodrich (B.F.) Co. 102 4,212
Medicis Pharmaceutical Corp. (a) 89 4,536
Rexall Sundown, Inc. (a) 114 3,429
Serologicals Corp. (a) 53 1,375
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23,761
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Electrical Industrial Equipment - 0.5%
MagneTek, Inc. (a) 153 2,984
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Electronic Components - 3.3%
Computer Products, Inc. (a) 90 2,036
Innovex, Inc. 267 6,124
Park Electrochemical Corp. 175 4,993
Sanmina Corp. (a) 63 4,268
SemTech Corp. (a) 50 1,956
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19,377
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Fabricated Metal - 1.2%
Barnes Group, Inc. 120 2,721
Valmont Industries 100 1,950
Wyman-Gordon Co. (a) 129 2,532
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7,203
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Food & Kindred Products - 1.0%
Michael Foods, Inc. 118 2,876
NBTY, Inc. (a) 87 2,904
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5,780
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Furniture & Fixtures - 1.7%
Furniture Brands International, Inc. (a) 485 10,120
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Investment Portfolio/December 31, 1997
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COMMON STOCKS - CONT. SHARES VALUE
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MANUFACTURING - CONT.
Leather - 0.8%
Samsonite Corp. (a) 150 $ 4,744
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Lighting Equipment - 0.7%
Technitrol, Inc. 129 3,870
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Lumber & Wood Products - 0.6%
Oakwood Homes Corp. 107 3,550
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Machinery & Computer Equipment - 5.8%
Applied Power, Inc., Class A 50 3,450
Black Box Corp. (a) 76 2,696
Camco International, Inc. 47 2,974
Gehl Co. (a) 164 3,444
GENICOM Corp. (a) 180 2,070
Kaydon Corp. 104 3,393
Manitowoc, Inc. 137 4,439
NACCO Industries, Inc. 21 2,230
STB Systems, Inc. (a) 105 2,299
Terex Corp. (a) 114 2,679
Trico Marine Services, Inc. (a) 60 1,768
Zebra Technologies Corp., Class A (a) 80 2,380
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33,822
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Measuring & Analyzing Instruments - 3.7%
ADAC Laoboratories 262 5,174
ATL Ultrasound, Inc. (a) 84 3,841
Esterline Technologies Corp. (a) 87 3,118
Fossil, Inc. (a) 104 2,587
IFR Systems, Inc. 2 23
Respironics, Inc. (a) 70 1,595
Tracor, Inc. (a) 181 5,483
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21,821
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Miscellaneous Manufacturing - 1.9%
COMFORCE Corp. (a) 13 99
ESC Medical Systems Ltd. (a) 213 8,254
Russ Berrie & Company, Inc. 103 2,704
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11,057
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Paper Products - 0.7%
Shorewood Packaging Corp. (a) 63 1,672
Wausau Paper Mills Co. 106 2,136
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3,808
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Investment Portfolio/December 31, 1997
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Petroleum Refining - 0.5%
Tesoro Petroleum Corp. (a) 184 $ 2,854
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Primary Metal - 2.1%
Brush Wellman, Inc. 91 2,230
Encore Wire Corp. (a) 60 1,841
Inland Steel Industries, Inc. 213 3,674
Mueller Industries, Inc. (a) 55 3,245
Quanex Corp. 35 984
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11,974
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Printing & Publishing - 0.5%
Bowne & Co., Inc. 49 1,970
New England Business Service, Inc. 33 1,110
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3,080
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Rubber & Plastic - 0.5%
Carlisle Cos., Inc. 61 2,603
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Stone, Clay, Glass & Concrete - 1.0%
Libbey, Inc. 80 3,018
Lone Star Industries, Inc. 50 2,656
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5,674
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Textile Mill Products - 0.8%
Culp, Inc. 70 1,400
Interface, Inc. 116 3,373
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4,773
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Transportation Equipment - 1.2%
Arvin Industries, Inc. 86 2,865
Borg-Warner Automotive, Inc. 60 3,120
Varlen Corp. 48 1,158
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7,143
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MINING & ENERGY - 3.5%
Coal Mining - 0.2%
Zeigler Coal Holding Co. 58 946
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Metal Mining - 0.4%
Cleveland-Cliffs, Inc. 53 2,428
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Oil & Gas Extraction - 1.6%
Devon Energy Corp. 89 3,443
Santa Fe Energy Resources, Inc. 182 2,043
Vintage Petroleum, Inc. 186 3,534
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9,020
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Investment Portfolio/December 31, 1997
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COMMON STOCKS - CONT. SHARES VALUE
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MANUFACTURING - CONT.
Oil & Gas Field Services - 1.3%
Marine Drilling Companies, Inc. (a) 155 $ 3,236
Pool Energy Services Co. (a) 93 2,093
Veritas DGC Inc. (a) 55 2,172
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7,501
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RETAIL TRADE - 11.4%
Apparel & Accessory Stores - 4.1%
Claire's Stores, Inc. 217 4,226
Dress Barn, Inc. (a) 129 3,612
Genesco, Inc. (a) 237 3,022
Paul Harris Stores, Inc. (a) 137 1,378
Ross Stores, Inc. 153 5,575
Stein Mart, Inc. (a) 92 2,461
The Finish Line, Inc., Class A (a) 270 3,510
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23,784
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Building, Hardware & Garden Supply - 0.4%
Griffon Corp. (a) 175 2,559
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Food Stores - 1.0%
Quality Food Centers, Inc. (a) 65 4,355
Ruddick Corp. 88 1,538
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5,893
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General Merchandise Stores - 1.9%
Ames Department Stores, Inc. (a) 228 3,992
Mac Frugals Bargains Close-Outs, Inc. (a) 110 4,524
Shopko Stores, Inc. 123 2,675
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11,191
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Home Furnishings & Equipment - 1.0%
Circle International Group, Inc. 130 2,982
CompUSA, Inc. (a) 96 2,976
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5,958
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Miscellaneous Retail - 0.9%
Lands End, Inc. 75 2,630
Tiffany & Co. 64 2,308
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4,938
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Restaurants - 2.1%
Applebee's International, Inc. 75 1,350
Foodmaker, Inc. (a) 312 4,699
Showbiz Pizza Time, Inc. (a) 261 6,003
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12,052
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Investment Portfolio/December 31, 1997
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SERVICES - 13.4%
Amusement & Recreation - 0.4%
Anchor Gaming (a) 41 $ 2,258
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Business Services - 2.8%
Advo, Inc. 174 3,393
Compucom Systems, Inc. (a) 175 1,444
Norrell Corp. 211 4,194
Valassis Communications, Inc. (a) 194 7,171
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16,202
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Computer Related Services - 2.9%
Data Dimensions, Inc. (a) 75 1,284
Jack Henry & Associates 82 2,245
National Instruments Corp. (a) 56 1,700
Rent-Way, Inc. (a) 230 4,255
Sotheby's Holdings, Inc. 139 2,573
Systems & Computer Technology Corp. (a) 97 4,814
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16,871
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Computer Software - 1.4%
Hyperion Software Corp. (a) 183 6,576
Remedy Corp. (a) 66 1,384
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7,960
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Engineering, Accounting, Research & Management - 1.0%
CDI Corp. (a) 59 2,699
Jacobs Engineering Group, Inc. (a) 136 3,459
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6,158
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Health Services - 4.9%
Curative Health Services, Inc. (a) 114 3,463
Diagnostic Health Services, Inc. (a) 106 1,252
Integrated Health Services, Inc. 92 2,861
Lincare Holdings, Inc. (a) 20 1,140
Osteotech, Inc. (a) 88 2,392
RehabCare Group, Inc. (a) 118 3,114
Renal Treatment Centers, Inc. (a) 175 6,322
Universal Health Services, Inc., Class B (a) 158 7,944
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28,488
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TRANSPORTATION, COMMUNICATION, ELECTRIC,
GAS & SANITARY SERVICES - 6.8%
Air Transportation - 1.2%
Airborne Freight Corp. 82 5,088
Comair Holdings, Inc. 76 1,843
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6,931
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Investment Portfolio/December 31, 1997
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COMMON STOCKS - CONT. SHARES VALUE
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TRANSPORTATION, COMMUNICATION, ELECTRIC,
GAS & SANITARY SERVICES - CONT.
Communications - 0.5%
Aliant Communications, Inc. 106 $ 3,326
-----------
Electric Services - 1.7%
Commonwealth Energy System Cos. 22 732
Public Service Company of New Mexico 240 5,685
Sierra Pacific Resources 100 3,750
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10,167
-----------
Gas Services - 0.5%
ONEOK, Inc. (a) 1 40
Ugi Corp. 92 2,697
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2,737
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Motor Freight & Warehousing - 1.8%
CNF Transportation, Inc. 23 887
US Xpress Enterprises, Inc. Class A (a) 83 1,833
USFreightways Corp. 91 2,958
Werner Enterprises, Inc. 65 1,332
Yellow Corp. 147 3,693
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10,703
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Sanitary Services - 0.6%
Piedmont Natural Gas Co. 97 3,486
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Transportation Services - 0.5%
Ogden Corp. 112 3,151
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WHOLESALE TRADE - 6.5%
Durable Goods - 4.0%
Ethan Allen Interiors, Inc. 67 2,576
Fisher Scientific International, Inc. 63 3,003
Gulf South Medical Supply, Inc. (a) 90 3,353
Ingram Micro, Inc. (a) 83 2,417
Kent Electronics Corp. (a) 85 2,146
Marshall Industries (a) 9 261
MicroAge, Inc. (a) 129 1,943
Owens & Minor, Inc. 179 2,591
Patterson Dental Co. (a) 79 3,575
SED International Holdings (a) 163 1,836
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23,701
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Investment Portfolio/December 31, 1997
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Nondurable Goods - 2.5%
Fleming Co., Inc. 104 $ 1,398
Herbalife International, Class A (a) 50 1,074
Herbalife International, Class B 100 2,160
Performance Food Group Co. (a) 5 119
Richfood Holdings, Inc. 142 4,000
Universal Corp. 140 5,758
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14,509
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TOTAL COMMON STOCKS (cost of $459,790)(b) 541,165
-----------
RIGHTS - 0.0% (a)
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FINANCE, INSURANCE & REAL ESTATE
Insurance Carriers
Delphi Financial Group (cost of (c)) 7 (c)
-----------
SHORT-TERM OBLIGATIONS - 9.6% PAR
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Repurchase agreement with ABN Amro Chicago Corp.,
dated 12/31/97, due 01/02/98 at 6.600%, collateralized
by U.S. Treasury notes with various maturities to
2016, value $57,533 (repurchase proceeds $56,257) $ 56,236 56,236
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OTHER ASSETS & LIABILITIES, NET - (2.3%) (13,405)
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NET ASSETS - 100.0% $583,996
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NOTES TO INVESTMENT PORTFOLIO:
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(a) Non-income producing.
(b) Cost for federal income tax purposes is approximately the same.
(c) Rounds to less than one.
See notes to financial statements.
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STATEMENT OF ASSETS & LIABILITIES
DECEMBER 31, 1997 (UNAUDITED)
(in thousands except for per share amounts and footnotes)
ASSETS
Investments at value (cost $459,790) $ 541,165
Short-term obligations 56,236
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597,401
Receivable for:
Fund shares sold $ 4,768
Dividends 409
Interest 10
Other 90 5,277
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Total Assets 602,678
LIABILITIES
Payable for:
Investments purchased 16,725
Fund shares repurchased 1,954
Accrued:
Deferred Trustees fees 3
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Total Liabilities 18,682
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NET ASSETS $ 583,996
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Net asset value & redemption price per share - Class A
($280,339/8,770) 31.97
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Maximum offering price per share - Class A
($31.97/0.9425) $ 33.92(a)
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Net asset value & offering price per share - Class B
($277,960/9,068) $ 30.65(b)
=============
Net asset value & offering price per share - Class C
($20,576/653) $ 31.50(b)
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Net asset value, offering and redemption
price per share - Class Z ($5,121/159) $ 32.21
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COMPOSITION OF NET ASSETS
Capital paid in $ 500,677
Overdistributed net investment income (8)
Accumulated net realized gains 1,952
Net unrealized appreciation 81,375
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$ 583,996
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(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.
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STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED DECEMBER 31, 1997
(UNAUDITED)
(in thousands)
INVESTMENT INCOME
Dividends $ 1,864
Interest 1,282
-------------
3,146
EXPENSES
Management fee $ 1,727
Service fee - Class A, Class B, Class C 611
Distribution fee - Class B 884
Distribution fee - Class C 56
Transfer agent 770
Bookkeeping fee 90
Trustees fee 10
Custodian fee 5
Audit fee 13
Legal fee 3
Registration fee 47
Reports to shareholders 8
Other 22 4,246
------------- -------------
Net Investment Loss (1,100)
-------------
NET REALIZED & UNREALIZED GAIN ON PORTFOLIO POSITIONS
Net realized gain 30,613
Net unrealized appreciation during the period 11,401
-------------
Net Gain 42,014
-------------
Increase in Net Assets from Operations $ 40,914
=============
See notes to financial statements.
15
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
Six months ended Year ended
(in thousands) December 31 June 30
------------- -------------
INCREASE (DECREASE) IN NET ASSETS 1997 (a) 1997
Operations:
Net investment loss $ (1,100) $ (1,000)
Net realized gain 30,613 12,663
Net unrealized appreciation 11,401 37,333
------------- -------------
Net Increase from Operations 40,914 48,996
Distributions:
From net realized gains - Class A (16,393) (3,482)
From net realized gains - Class B (16,885) (4,515)
From net realized gains - Class C (1,167) (160)
From net realized gains - Class Z (306) (133)
------------- -------------
6,163 40,706
------------- -------------
Fund Share Transactions:
Receipts for shares sold - Class A 408,371 359,182
Value of distributions reinvested - Class A 14,747 3,095
Cost of shares repurchased - Class A (277,304) (339,178)
------------- -------------
145,814 23,099
------------- -------------
Receipts for shares sold - Class B 106,517 99,839
Value of distributions reinvested - Class B 15,908 4,261
Cost of shares repurchased - Class B (25,434) (43,089)
------------- -------------
96,991 61,011
------------- -------------
Receipts for shares sold - Class C 14,311 9,132
Value of distributions reinvested - Class C 1,108 127
Cost of shares repurchased - Class C (2,849) (4,522)
------------- -------------
12,570 4,737
------------- -------------
Receipts for shares sold - Class Z 152 1,208
Value of distributions reinvested - Class Z 306 133
Cost of shares repurchased - Class Z (404) (773)
------------- -------------
54 568
------------- -------------
Net Increase from Fund Share
Transactions 255,429 89,415
------------- -------------
Total Increase 261,592 130,121
NET ASSETS
Beginning of period 322,404 192,283
------------- -------------
End of period (net of overdistributed and
including undistributed net investment
income of $8 and $26, respectively) $ 583,996 $ 322,404
============= =============
(a) Class D shares were redesignated Class C shares on July 1, 1997.
See notes to financial statements.
16
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
(continued)
(Unaudited)
Six months ended Year ended
December 31 June 30
------------- -------------
1997 (a) 1997
NUMBER OF FUND SHARES
Sold - Class A 12,344 7,161
Issued for distributions reinvested - Class A 452 101
Repurchased - Class A (8,317) (5,693)
------------- -------------
4,479 1,569
------------- -------------
Sold - Class B 3,311 3,410
Issued for distributions reinvested - Class B 508 86
Repurchased - Class B (795) (1,113)
------------- -------------
3,024 2,383
------------- -------------
Sold - Class C 436 105
Issued for distributions reinvested - Class C 35 --
Repurchased - Class C (89) (7)
------------- -------------
382 98
------------- -------------
Sold - Class Z 5 144
Issued for distributions reinvested - Class Z 9 5
Repurchased - Class Z (12) (13)
------------- -------------
2 136
------------- -------------
(a) Class D shares were redesignated Class C shares on July 1, 1997.
See notes to financial statements.
17
<PAGE>
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997 (UNAUDITED)
NOTE 1. INTERIM FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
In the opinion of management of Colonial Small Cap Value 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 smaller capitalization equities.
The Fund may issue an unlimited number of shares. The Fund offers four classes
of shares: Class A, Class B, Class C and Class Z. 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 which are subject
to an annual distribution fee and a contingent deferred sales charge. Class Z
shares are offered continuously at net asset value. There are certain
restrictions on purchasing Class Z shares, please refer to a prospectus.
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.
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.
18
<PAGE>
Notes to Financial Statements/December 31, 1997
- --------------------------------------------------------------------------------
Determination of class net asset values and financial highlights: All income,
expenses (other than the Class A, Class B and Class C service fee and 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.
The per share data was calculated using the average shares outstanding during
the period. In addition, Class A, Class B, and Class C net investment income per
share data reflects the service fee applicable to Class A, Class B and Class C
shares and the distribution fee applicable to Class B and Class C shares only.
Class A, 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 service
fee applicable to Class A, Class B and Class C shares and 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.
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. Prior to September 30, 1997, the monthly fee was 0.60%
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
19
<PAGE>
Notes to Financial Statements/December 31, 1997
- --------------------------------------------------------------------------------
NOTE 3. FEES AND COMPENSATION PAID TO AFFILIATES - CONT.
- --------------------------------------------------------------------------------
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 $136,702 on sales of the
Fund's Class A shares and received contingent deferred sales charges (CDSC) of
$182,874 and $4,727 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 attributable to
Class A, Class B and Class C, 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, respectively.
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.
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.
NOTE 4. PORTFOLIO INFORMATION
- --------------------------------------------------------------------------------
Investment activity: During the six months ended December 31, 1997, purchases
and sales of investments, other than short-term obligations, were $330,229,073
and $124,159,842, respectively.
Unrealized appreciation (depreciation) at December 31, 1997, based on cost of
investments for federal income tax purposes was:
Gross unrealized appreciation $ 107,573,630
----------------
Gross unrealized depreciation (26,198,181)
----------------
Net unrealized appreciation $ 81,375,449
================
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:
Six months ended December 31
----------------------------------------------------
1997
Class A Class B Class C (b) Class Z
---------- ------------- ----------- ---------
Net asset value -
Beginning of period $30.570 $29.490 $30.240 $30.740
---------- ------------- --------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment
income (loss) (a) (0.012) (0.131) (0.135) 0.030
Net realized and
unrealized gain (a) 3.462 3.341 3.445 3.490
---------- ------------- --------- ---------
Total from Investment
Operations 3.450 3.210 3.310 3.520
---------- ------------- --------- ---------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net realized
gains (2.050) (2.050) (2.050) (2.050)
---------- ------------- --------- ---------
Net asset value -
End of period $31.970 $30.650 $31.500 $32.210
========== ============= ========= =========
Total return (c)(d) 11.16% 10.75% 10.81% 11.32%
========== ============= ========= =========
RATIOS TO AVERAGE NET ASSETS
Expenses (e)(f) 1.36% 2.11% 2.11% 1.11%
Net investment
income (loss) (e)(f) (0.06)% (0.81)% (0.81)% 0.19%
Portfolio turnover (d) 28% 28% 28% 28%
Average commission
rate $0.0358 $0.0358 $0.0358 $0.0358
Net assets at end
of period (000) $280,339 $277,960 $20,576 $5,121
(a) Per share data was calculated using average shares outstanding during the
period.
(b) Class D shares were redesignated 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) The benefits derived from custody credits and directed brokerage arrange-
ments had no impact.
(f) Annualized.
21
<PAGE>
FINANCIAL HIGHLIGHTS
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 (b) Class Z
------------ --------- ----------- ---------
Net asset value -
Beginning of period $26.480 $25.770 $26.400 $26.550
------------ ---------- ---------- ---------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment
income (loss) (a) (0.003) (0.199) (0.208) 0.065
Net realized and
unrealized gain (a) 5.073 4.899 5.028 5.105
------------ ---------- ---------- ---------
Total from Investment
Operations 5.070 4.700 4.820 5.170
------------ ---------- ---------- ---------
LESS DISTRIBUTIONS DECLARED
TO SHAREHOLDERS:
From net realized
gains (0.980) (0.980) (0.980) (0.980)
------------ ---------- ---------- ---------
Net asset value -
End of period $30.570 $29.490 $30.240 $30.740
============ ========== ========== =========
Total return (f) 19.54% 18.63% 18.64% 19.87%
============ ========== ========== =========
RATIOS TO AVERAGE NET
ASSETS
Expenses (h) 1.32% 2.07% 2.07% 1.07%
Net investment
income (loss) (h) (0.01)% (0.76)% (0.76)% 0.24%
Portfolio turnover 54% 54% 54% 54%
Average commission
rate (j) $0.0422 $0.0422 $0.0422 $0.0422
Net assets at end
of period (000) $131,151 $178,234 $8,194 $4,825
(a) Per share data was calculated using average shares outstanding during the
period.
(b) Class D shares were redesignated Class C shares on July 1, 1997.
(c) Class C shares were initially offered on January 15, 1996. Per share data
reflects activity from that date.
(d) Class Z shares were initially offered on July 31, 1995. Per share data
reflects activity from that date.
(e) Includes distribution from Advo, Inc., which amounted to $0.047 per share.
(f) Total return at net asset value assuming all distributions reinvested and
no initial sales charge or contingent deferred sales charge.
(g) Not annualized
(h) The benefits derived from custody credits and directed brokerage arrange-
ments had no impact. Prior years' ratios are net of benefits received, if
any.
(i) Annualized.
(j) 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.
Selected data for a share of each class outstanding throughout each period are
as follows:
Year ended June 30
-------------------------------------------------------------------
1996
Class A Class B Class C (c) Class Z (d)
---------- ------------- ------------ --------------
$ 22.260 $ 21.840 $ 22.550 $ 24.790
---------- ------------- ------------ --------------
0.036 (e) (0.147) (e) (0.072) (e) 0.096 (e)
5.479 5.372 3.922 2.959
---------- ------------- ------------ --------------
5.515 5.225 3.850 3.055
---------- ------------- ------------ --------------
(1.295) (1.295) -- (1.295)
---------- ------------- ------------ --------------
$ 26.480 $ 25.770 $ 26.400 $ 26.550
========== ============= ============ ==============
25.31% 24.44% 17.07% (g) 12.81% (g)
========== ============= ============ ==============
1.38% 2.13% 2.15% (i) 1.13% (i)
-- -- -- --
0.15% (0.60)% (0.54)% (i) 0.41% (i)
46% 46% 46% 46%
$ 0.0440 $ 0.0440 $0.0440 $ 0.0440
$ 89,924 $ 96,158 $ 2,585 $ 3,616
23
<PAGE>
FINANCIAL HIGHLIGHTS - CONT.
Selected data for a share of each class outstanding throughout each period are
as follows:
<TABLE>
<CAPTION>
Year ended June 30
-------------------------------------------------------------------------------------
1995 1994 1993
Class A Class B Class A Class B Class A Class B (b)
------------- ------------- ------------- ------------- -------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value -
Beginning of period $ 16.670 $ 16.470 $ 15.860 $ 15.790 $ 12.330 $ 13.010
------------- ------------- ------------- ------------- -------------- -------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment
income (loss) (a) 0.002 (0.139) (0.047) (0.176) (0.083) (0.100)
Net realized and
unrealized gain (a) 5.588 5.509 0.857 0.856 3.613 2.880
------------- ------------- ------------- ------------- -------------- -------------
Total from Investment
Operations 5.590 5.370 0.810 0.680 3.530 2.780
------------- ------------- ------------- ------------- -------------- -------------
Net asset value -
End of period $ 22.260 $ 21.840 $ 16.670 $ 16.470 $ 15.860 $ 15.790
============= ============= ============= ============= ============== =============
Total return (c) 33.53% 32.60% 5.11% 4.31% 28.63% 21.37% (d)
============= ============= ============= ============= ============== =============
RATIOS TO AVERAGE NET ASSETS
Expenses 1.45% 2.20% 1.56% 2.31% 1.88% 2.63% (e)
Interest expense -- -- -- -- 0.01% 0.01%
Net investment
income (loss) 0.01% (0.74)% (0.27)% (1.02)% (0.60)% (1.35)% (e)
Portfolio turnover 64% 64% 35% 35% 29% 29%
Net assets at end
of period (000) $ 40,661 $ 29,458 $ 24,760 $ 8,489 $ 23,716 $ 1,665
</TABLE>
(a) Per share data was calculated using average shares outstanding during the
period.
(b) Class B shares were initially offered on November 9, 1992. Per share data
reflects 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) Not annualized.
(e) Annualized.
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 Small Cap Value Fund is:
Colonial Investors Service Center, Inc.
P.O. Box 1722
Boston, MA 02105-1722
1-800-345-6611
Colonial Small Cap Value 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 Small Cap Value 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
SC-03/659E-1297 M (2/98)
