INVESTMENT PORTFOLIO
JUNE 30, 1998 (IN THOUSANDS)
<TABLE>
<CAPTION>
COMMON STOCKS - 71.9% COUNTRY SHARES VALUE
- -----------------------------------------------------------------------------
<S> <C> <C> <C>
CONSTRUCTION - 0.9%
HEAVY CONSTRUCTION-NON BUILDING CONSTRUCTION
Stork N.V. Ne 2 $ 51
------
............................................................................
FINANCE, INSURANCE & REAL ESTATE - 20.7%
DEPOSITORY INSTITUTIONS - 10.7%
Argentaria Sp 3 76
Australia & New Zealand Banking Group Ltd. Au 9 63
Banca Nazionale del Lavoro It 3 66
Banco de Bilbao Sp 1 72
Banco Pinto & Sotto Mayor Po 3 78
Bank of Tokyo Mitsubishi Ja 5 53
Bayerische Hypotheken - Und Wechsel Bank G 1 85
Lloyds Bank PLC UK 4 54
Westpac Banking Corp. Au 9 54
------
601
------
HOLDING COMPANIES - 1.1%
Cheung Kong (Holdings) Ltd. HK 12 59
------
INSURANCE CARRIERS - 3.8%
International Nederlanden Groep Ne 1 75
Union des Assurances Federales Fr (a) 61
Zurich Versicherungs-Gesellschaft Sz (a) 80
------
216
------
INVESTMENT COMPANIES - 4.4%
Brazil Fund, Inc. (b) 3 54
Chile Fund, Inc. (b) 4 58
Korea Fund, Inc. (b) 8 49
Malaysia Fund, Inc. (b) 8 45
Thai Fund (b) 7 41
------
247
------
REAL ESTATE - 0.7%
New World Development Co., Ltd. HK 19 37
------
............................................................................
MANUFACTURING - 28.9%
CHEMICALS & ALLIED PRODUCTS - 10.3%
BASF AG G 2 74
Bayer AG G 1 75
Christian Dior SA Fr 1 67
DSM NV Ne 1 61
Hoechst AG G 2 83
Imperial Chemical Industries PLC UK 3 48
</TABLE>
6
<PAGE>
<TABLE>
<CAPTION>
Investment Portfolio/June 30, 1998
- ----------------------------------------------------------------------------
<S> <C> <C> <C>
Medeva PLC UK 23 $ 66
Novartis Sz (a) 42
Sanofi SA Fr 1 66
------
582
------
COMMUNICATIONS EQUIPMENT - 3.8%
Matsushita Electric Industrial Co. Ja 4 64
Philips Electronics NV Ne 1 75
Telefonaktiebolaget LM Ericsson
Class B Sw 3 76
------
215
------
FOOD & KINDRED PRODUCTS - 3.6%
Nestle AG Sz (a) 54
Parmalat Finanziara SPA It 40 80
Unilever NV Ne 1 71
------
205
------
HOUSEHOLD APPLIANCES - 1.2%
Electrolux AB, Series B Sw 4 69
------
MACHINERY & COMPUTER EQUIPMENT - 2.9%
Hitachi Ltd. Ja 9 59
Mannesmann AG G 1 103
------
162
------
MEASURING & ANALYZING INSTRUMENTS - 1.2%
Fuji Photo Film Co., Ltd. Ja 2 70
------
PETROLEUM REFINING - 1.3%
British Petroleum Ltd. UK 5 73
------
PRIMARY METAL - 0.9%
Alfa, S.A. de C.V. Class A Mx 11 52
------
STONE, CLAY, GLASS & CONCRETE - 1.7%
Holderbank Financiere Glaris AG Sz (a) 95
------
TOBACCO PRODUCTS - 1.1%
B.A.T. Industries PLC UK 6 60
------
TRANSPORTATION EQUIPMENT - 0.9%
Toyota Motor Corporation Ja 2 52
------
............................................................................
MINING & ENERGY - 0.9%
OIL & GAS EXTRACTION
EdperBrascan Ltd. Class A Ca 3 52
------
</TABLE>
7
<PAGE>
<TABLE>
<CAPTION>
Investment Portfolio/June 30, 1998
- ------------------------------------------------------------------------------
COMMON STOCKS - CONT. SHARES VALUE
- ------------------------------------------------------------------------------
<S> <C> <C> <C>
RETAIL TRADE - 3.3%
BUILDING, HARDWARE & GARDEN SUPPLY - 0.9%
Pioneer International Ltd. Au 22 $ 52
------
FOOD STORES - 1.3%
Vedior NV-CVA Ne 1 31
Vendex NV Ne 1 41
------
72
------
MISCELLANEOUS RETAIL - 1.1%
Imasco Ltd. Ca 3 63
------
..............................................................................
SERVICES - 1.1%
HEALTH SERVICES
Astra AB, Class B Sw 3 62
------
..............................................................................
TRANSPORTATION, COMMUNICATION, ELECTRIC,
GAS & SANITARY SERVICES - 16.1%
AIR TRANSPORTATION - 1.3%
Lufthansa AG G 3 74
------
ELECTRIC SERVICES - 2.1%
China Light & Power Co., Ltd. HK 13 59
Union Electrica Fenosa SA Sp 5 61
------
120
------
GAS SERVICES - 0.8%
Hong Kong and China Gas Co., Ltd. HK 40 46
------
MOTOR FREIGHT & WAREHOUSING - 1.0%
Seino Transportation Ja 10 55
------
SANITARY SERVICES - 2.3%
Anglian Water PLC UK 4 56
United Utilities PLC UK 5 73
------
129
------
TELECOMMUNICATIONS - 8.6%
British Telecommunications PLC UK 6 74
Nippon Telegraph & Telephone Corp. Ja (a) 66
Nokia AB Fi 1 88
Portugal Telecom SA Po 1 63
Tele Danmark A/S ADR De 2 75
Telecom Italia SPA It 9 65
Telefonica de Argentina SA ADR Ar 2 52
------
483
------
TOTAL COMMON STOCKS (cost of $3,598) 4,054
------
</TABLE>
8
<PAGE>
<TABLE>
<CAPTION>
Investment Portfolio/June 30, 1998
- ----------------------------------------------------------------------------
WARRANTS - 0.0% SHARES VALUE
- ----------------------------------------------------------------------------
<S> <C> <C> <C>
GAS SERVICES
Hong Kong & China Gas Co. Ltd.
(cost $0) HK 2 (a)
------
TOTAL INVESTMENTS - 71.9% (cost of $3,598)(c) 4,054
------
SHORT-TERM OBLIGATIONS - 27.1% PAR
- ----------------------------------------------------------------------------
Repurchase agreement with ABN AMRO Chicago Corp.,
dated 06/30/97, due 07/01/98 at 6.100%
collateralized by U.S. Treasury notes and bill
with various maturities to 2027, market value
$1,048 (repurchase proceeds $1,026) $1,026 1,026
Fed Home Loan Mortgage Corp.,
5.450%(d) 07/01/98 500 500
------
1,526
------
OTHER ASSETS & LIABILITIES, NET - 1.0% 58
- ----------------------------------------------------------------------------
NET ASSETS - 100% $5,638
======
NOTES TO INVESTMENT PORTFOLIO:
- ----------------------------------------------------------------------------
(a) Rounds to less than one.
(b) These securities are subject to the risks of the various countries in
which the issuer is investing. (See Notes to Financial Statements:
Note 4 - Other.)
(c) Cost for federal income tax purposes is the same.
(d) Rate represents yield at date of purchase.
</TABLE>
Notes to investment portfolio continued on following page.
9
<PAGE>
<TABLE>
<CAPTION>
Investment Portfolio/June 30, 1998
- --------------------------------------------------------------------------------
Summary of Securities
by Country Country Value % of Total
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
United Kingdom UK 504 12.4
Germany G 494 12.2
Japan Ja 419 10.3
Netherlands Ne 405 10.0
Switzerland Sz 271 6.7
Italy It 211 5.2
Spain Sp 209 5.1
Sweden Sw 207 5.1
Hong Kong HK 201 5.0
France Fr 194 4.8
Australia Au 169 4.2
Portugal Po 141 3.5
Canada Ca 115 2.8
Finland Fi 88 2.2
Denmark De 75 1.8
Mexico Mx 52 1.3
Argentina Ar 52 1.3
Other(a) 247 6.1
------ -----
$4,054 100.0
====== =====
</TABLE>
Certain securities are listed by country of underlying exposure but may
trade predominantly on other exchanges.
(a) Composed of countries individually less than one percent.
Acronym Name
------- ----
ADR American Depositary Receipt
See notes to financial statements.
10
<PAGE>
STATEMENT OF ASSETS & LIABILITIES
JUNE 30, 1998
<TABLE>
<S> <C> <C>
(in thousands except for per share amounts and footnotes)
ASSETS
Investments at value (cost $3,598) $4,054
Short-term obligations 1,526
------
5,580
Cash held in foreign banks (cost $13) $ 13
Receivable for:
Dividends 11
Foreign tax reclaims 14
Deferred organization expenses 29
----
67
------
Total Assets 5,647
LIABILITIES
Accrued other 4
Due to Adviser 5
----
Total Liabilities 9
------
NET ASSETS $5,638
======
Net asset value & redemption price per share -
Class A ($5,012/425) $11.81
======
Maximum offering price per share - Class A
($11.81/0.9425) $12.53(a)
======
Net asset value & offering price per share -
Class B ($313/27) $11.76(b)
======
Net asset value & offering price per share -
Class C ($313/27) $11.76(b)
======
COMPOSITION OF NET ASSETS
Capital paid in $2,678
Undistributed net investment income 50
Accumulated net realized gain 2,454
Net unrealized appreciation on:
Investments 456
------
$5,638
======
</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.
11
<PAGE>
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED JUNE 30, 1998
<TABLE>
<S> <C> <C>
(in thousands)
INVESTMENT INCOME
Dividends:
Brazil Fund Inc. $ 20
British Telecommunications PLC 30
Other 157
Interest 71
------
Total investment income (net of nonrebatable
foreign taxes withheld at source which
amounted to $23) 278
EXPENSES
Management fee $ 103
Service fee 27
Distribution fee - Class B 2
Distribution fee - Class C 2
Transfer agent 27
Bookkeeping fee 27
Trustees 9
Custodian fee 19
Audit 13
Legal fee 4
Amortization of deferred organization expenses 11
Registration 32
Other 4
------
280
Fees waived by the Adviser (87) 193
------
Net Investment Income 85
------
NET REALIZED & UNREALIZED GAIN (LOSS) ON PORTFOLIO POSITIONS
Net realized gain (loss) on:
Investments 2,945
Foreign currency transactions (1)
------
Net Realized Gain 2,944
Net unrealized appreciation (depreciation)
during the period on:
Investments (1,880)
Foreign currency transactions 1
------
Net Unrealized Loss (1,879)
------
Net Gain 1,065
------
Increase in Net Assets from Operations $1,150
======
</TABLE>
See notes to financial statements.
12
<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 income $ 85 $ 134
Net realized gain 2,944 161
Net unrealized appreciation (depreciation) (1,879) 1,958
------- -------
Net Increase from Operations 1,150 2,253
Distributions:
From net investment income - Class A (139) (80)
From net realized gains - Class A (545) (122)
From net investment income - Class B (1) --
From net realized gains - Class B (14) (2)
From net investment income - Class C (1) --
From net realized gains - Class C (14) (2)
------- -------
436 2,047
Fund Share Transactions:
Value of distributions reinvested - Class A 684 202
Cost of shares repurchased - Class A (11,208) (2,000)
------- -------
(10,524) (1,798)
------- -------
Value of distributions reinvested - Class B 15 2
------- -------
Value of distributions reinvested - Class C 15 2
------- -------
Net Decrease from Fund
Share Transactions (10,494) (1,794)
------- -------
Total Increase (Decrease) (10,058) 253
NET ASSETS
Beginning of period 15,696 15,443
------- -------
End of period (including undistributed
net investment income of $50 and $112,
respectively) $ 5,638 $15,696
======= =======
NUMBER OF FUND SHARES
Issued for distributions reinvested - Class A 65 19
Repurchased - Class A (930) (179)
------- -------
(865) (160)
------- -------
Issued for distributions reinvested - Class B 2 (b)
------- -------
Issued for distributions reinvested - 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 International Equity Fund (the Fund), a series of
Colonial Trust VI, 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 total
return through a combination of long-term growth of capital and income by
investing primarily in equity securities of companies outside the United States.
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.
Forward currency contracts are valued based on the weighted value of the
exchange traded contracts with similar durations.
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 carryfowards) under income tax regulations.
FOREIGN CURRENCY TRANSACTIONS: Net realized and unrealized gains (losses) on
foreign currency transactions includes gains (losses) arising from the
fluctuation in exchange rates between trade and settlement dates on securities
transactions, gains (losses) arising from the disposition of foreign currency
and currency gains (losses) between the accrual and payment dates on dividends
and interest income and foreign withholding taxes.
The Fund does not distinguish that portion of gains (losses) on investments
which is due to changes in foreign exchange rates from that which is due to
changes in market prices of the investments. Such fluctuations are included with
the net realized and unrealized gains (losses) on investments.
FORWARD CURRENCY CONTRACTS: The Fund may enter into forward currency contracts
to purchase or sell foreign currencies at predetermined exchange rates in
connection with the settlement of purchases and sales of securities. The Fund
may also enter into forward currency contracts to hedge certain other foreign
currency denominated assets. The contracts are used to minimize the exposure to
foreign exchange rate fluctuations during the
15
<PAGE>
Notes to Financial Statements/June 30, 1998
- --------------------------------------------------------------------------------
NOTE 1. ACCOUNTING POLICIES - CONT.
................................................................................
period between trade and settlement date of the contracts. All contracts are
marked-to-market daily, resulting in unrealized gains (losses) which become
realized at the time the forward currency contracts are closed or mature.
Realized and unrealized gains (losses) arising from such transactions are
included in net realized and unrealized gains (losses) on foreign currency
transactions. Forward currency contracts do not eliminate fluctuations in the
prices of the Fund's portfolio securities. While the maximum potential loss from
such contracts is the aggregate face value in U.S. dollars at the time the
contract was opened, exposure is typically limited to the change in value of the
contract (in U.S. dollars) over the period it remains open. Risks may also arise
if counterparties fail to perform their obligations under the contracts.
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.
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 0.95% 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 30, 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 Funds
Distributor, Inc., formerly Liberty Financial Investment, Inc. (the
Distributor), an affiliate 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.
16
<PAGE>
Notes to Financial Statements/June 30, 1998
- --------------------------------------------------------------------------------
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
service fees, distribution fees, brokerage commissions, interest, taxes, and
extraordinary expenses, if any) exceed 1.50% 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.
NOTE 3. PORTFOLIO INFORMATION
................................................................................
INVESTMENT ACTIVITY: During the year ended June 30, 1998, purchases and sales of
investments, other than short-term obligations, were $801,579 and $9,344,179,
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 $1,160,491
Gross unrealized depreciation (704,857)
----------
Net unrealized appreciation $ 455,634
==========
</TABLE>
OTHER: There are certain additional risks involved when investing in foreign
securities that are not inherent with investments in domestic securities. These
risks may involve foreign currency exchange rate fluctuations, adverse political
and economic developments and the possible prevention of foreign currency
exchange or the imposition of other foreign governmental laws or restrictions.
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, Colonial Management Associates, Inc., owned 100% of the Fund's
shares outstanding.
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(d)
------- ------- ---------
<S> <C> <C> <C>
Net asset value -
Beginning of period $11.710 $11.660 $11.660
------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income(a)(b)(c) 0.095 0.009 0.009
Net realized and unrealized gain 0.695 0.698 0.698
------- ------- -------
Total from Investment
Operations 0.790 0.707 0.707
------- ------- -------
LESS DISTRIBUTIONS DECLARED TO
SHAREHOLDERS:
From net investment income (0.140) (0.057) (0.057)
From net realized gains (0.550) (0.550) (0.550)
------- ------- -------
Total Distributions
Declared to Shareholders (0.690) (0.607) (0.607)
------- ------- -------
Net asset value -
End of period $11.810 $11.760 $11.760
======= ======= =======
Total return(e)(f) 7.38% 6.60% 6.60%
======= ======= =======
RATIOS TO AVERAGE NET ASSETS
Expenses(g) 1.75% 2.50% 2.50%
Fees and expenses waived
or borne by the Adviser(g) 0.80% 0.80% 0.80%
Net investment income(g) 0.83% 0.08% 0.08%
Portfolio turnover 9% 9% 9%
Net assets at end of period (000) $ 5,012 $ 313 $ 313
</TABLE>
(a) Net of fees and expenses waived or bourne by the Adviser which amounted to:
$ 0.092 $ 0.092 $ 0.092
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Includes distributions from British Telecommunications PLC and Brazil Fund
Inc. which amounted to $0.053 per share.
(d) Class D shares were redesignated Class C shares on July 1, 1997.
(e) Total return at net asset value assuming all distributions reinvested and
no initial sales charge or contingent deferred sales charge.
(f) If the adviser had not waived or reimbursed a portion of expenses, total
return would have been reduced.
(g) The benefits derived from custody credits and directed brokerage
arrangements had no impact.
18
<PAGE>
FINANCIAL HIGHLIGHTS - CONT.
<TABLE>
<CAPTION>
Year ended June 30
-------------------------------------------
1997
Class A Class B Class C(d)
------- ------- ---------
<S> <C> <C>
$ 10.300 $ 10.280 $ 10.280
------- ------- -------
0.093 0.014 0.014
1.456 1.450 1.450
------- ------- -------
1.549 1.464 1.464
------- ------- -------
(0.055) -- --
(0.084) (0.084) (0.084)
------- ------- -------
(0.139) (0.084) (0.084)
------- ------- -------
$11.710 $11.660 $11.660
======= ======= =======
15.20% 14.34% 14.34%
======= ======= =======
1.75% 2.50% 2.50%
0.47% 0.47% 0.47%
0.88% 0.13% 0.13%
40% 40% 40%
$15,108 $ 294 $ 294
$ 0.049 $ 0.049 $ 0.049
</TABLE>
19
<PAGE>
FINANCIAL HIGHLIGHTS
Selected data for a share of each class outstanding throughout each period are
as follows:
<TABLE>
<CAPTION>
Year ended June 30
---------------------------------------
1996(c)
Class A Class B Class C(d)
------- ------- ---------
<S> <C> <C> <C>
Net asset value -
Beginning of period $ 9.930 $ 9.930 $ 9.930
======= ======= =======
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (a)(b) 0.055 0.035 0.035
Net realized and
unrealized gain 0.315 0.315 0.315
------- ------- -------
Total from Investment
Operations 0.370 0.350 0.350
------- ------- -------
Net asset value -
End of period $10.300 $10.280 $10.280
======= ======= =======
Total return (e)(f)(g) 3.73% 3.52% 3.52%
======= ======= =======
RATIOS TO AVERAGE NET ASSETS
Expenses (h)(i) 1.75% 2.50% 2.50%
Fees and expenses waived or
borne by the Adviser (h)(i) 0.22% 0.22% 0.22%
Net investment income (h)(i) 2.17% 1.42% 1.42%
Portfolio turnover (g) 4% 4% 4%
Net assets at end
of period (000) $14,929 $ 257 $ 257
</TABLE>
(a) Net of fees and expenses waived or bourne by the Adviser which amounted to:
$ 0.006 $ 0.006 $ 0.006
(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) Class D shares were redesignated Class C shares on July 1, 1997.
(e) Total return at net asset value assuming all distributions reinvested and
no initial sales charge or contingent deferred sales charge.
(f) If the Adviser had not waived or reimbursed a portion of expenses, total
return would have been reduced.
(g) Not annualized.
(h) Annualized.
(i) The benefits derived from custody credits and directed brokerage
arrangements had no impact.
20
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
T0 THE TRUSTEES OF COLONIAL TRUST VI AND THE SHAREHOLDER OF COLONIAL
INTERNATIONAL EQUITY 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 International Equity 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 and brokers, provide a reasonable basis for the opinion expressed
above.
PricewaterhouseCoopers LLP
Boston, Massachusetts
August 25, 1998
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