As Of Filer Filing As/For/On Docs:Pgs Issuer Agent
8/28/02 Columbia Balanced Fund Inc/OR N-30D 6/30/02 1:216 Bowne of S..Francisco/FA
Columbia Fixed Income Securities Fund Inc
Columbia Technology Fund Inc
Columbia Strategic Value Fund Inc
Columbia Small Cap Fund Inc
Columbia Real Estate Equity Fund Inc
Columbia High Yield Fund Inc
Columbia National Municipal Bond Fund Inc
Columbia International Stock Fund Inc
Columbia Common Stock Fund Inc
Columbia Short Term Bond Fund Inc
Columbia Special Fund Inc
Columbia Oregon Municipal Bond Fund Inc
Columbia Growth Fund Inc
Columbia Daily Income Co
Annual or Semi-Annual Report Mailed to Shareholders · Rule 30d-1
Filing Table of Contents
Document/Exhibit Description Pages Size
1: N-30D Columbia Funds Semiannual Report Dated 06/30/02 216± 850K
[COLUMBIA FUNDS LOGO]
COLUMBIA FUNDS
2002 SEMIANNUAL REPORT
COLUMBIA COMMON STOCK FUND
COLUMBIA GROWTH FUND
COLUMBIA INTERNATIONAL STOCK FUND
COLUMBIA SPECIAL FUND
COLUMBIA SMALL CAP FUND
COLUMBIA REAL ESTATE EQUITY FUND
COLUMBIA TECHNOLOGY FUND
COLUMBIA STRATEGIC VALUE FUND
COLUMBIA BALANCED FUND
COLUMBIA SHORT TERM BOND FUND
COLUMBIA FIXED INCOME SECURITIES FUND
COLUMBIA NATIONAL MUNICIPAL BOND FUND
COLUMBIA OREGON MUNICIPAL BOND FUND
COLUMBIA HIGH YIELD FUND
COLUMBIA DAILY INCOME COMPANY
TABLE OF CONTENTS
--------------------------------------------------------------------------------
COLUMBIA FUNDS SEMIANNUAL REPORT
JUNE 30, 2002
[Download Table]
INTRODUCTION 1 TO OUR SHAREHOLDERS
-----------------------------------------------------------------------------
INVESTMENT 4 COLUMBIA COMMON STOCK FUND
REVIEWS 6 COLUMBIA GROWTH FUND
8 COLUMBIA INTERNATIONAL STOCK FUND
10 COLUMBIA SPECIAL FUND
12 COLUMBIA SMALL CAP FUND
14 COLUMBIA REAL ESTATE EQUITY FUND
16 COLUMBIA TECHNOLOGY FUND
18 COLUMBIA STRATEGIC VALUE FUND
20 COLUMBIA BALANCED FUND
22 COLUMBIA SHORT TERM BOND FUND
24 COLUMBIA FIXED INCOME SECURITIES FUND
26 COLUMBIA NATIONAL MUNICIPAL BOND FUND
28 COLUMBIA OREGON MUNICIPAL BOND FUND
30 COLUMBIA HIGH YIELD FUND
32 COLUMBIA DAILY INCOME COMPANY
-----------------------------------------------------------------------------
FINANCIAL 33 FINANCIAL HIGHLIGHTS
INFORMATION 41 SCHEDULES OF INVESTMENTS
92 STATEMENTS OF ASSETS AND LIABILITIES
94 STATEMENTS OF OPERATIONS
96 STATEMENTS OF CHANGES IN NET ASSETS
98 NOTES TO FINANCIAL STATEMENTS
COLUMBIA FUNDS
Columbia Financial Center
1301 SW Fifth Avenue
Portland, OR 97201-5601
1-800-547-1707
www.columbiafunds.com
Front cover features a photograph of the 85-year-old Vista
House, perched atop Crown Point at the mouth of the Columbia
River Gorge. The photo was taken in Oregon, looking across
to Washington State.
TO OUR SHAREHOLDERS
--------------------------------------------------------------------------------
[CONSUMER CONFIDENCE AT LOW
LEVELS LINE GRAPH]
[Download Table]
CONSUMER CONFIDENCE INDEX
-------------------------
25-Jan '00 144.7
140.8
137.1
137.7
144.7
27-Jun 139.2
143.0
140.8
142.5
135.8
132.6
128.6
30-Jan '01 115.7
109.2
116.9
109.9
116.1
26-Jun 118.9
116.3
114.0
97.0
85.3
84.9
94.6
29-Jan '02 97.8
95.0
110.7
108.5
110.3
25-Jun 106.3
---------------
Source: The Conference Board
We are pleased to present the Columbia Funds 2002 Semiannual Report. In the
following pages, you will find detailed financial information for the 15
Columbia Funds for the six months ended June 30, 2002. In addition, a discussion
of each fund's investment activity for the first half of the year is provided.
First, however, we'd like to offer an overview of the market environment in
which the Funds performed.
INVESTMENT CLIMATE MARRED BY ACCOUNTING CONTROVERSY
The year 2002 began on a strong note with a continuation of a market rally from
the closing weeks of 2001. However, the markets resumed a downward trend as the
first six months progressed. Aggressive accounting practices that upended Enron
and Arthur Anderson were joined by new financial reporting controversies at some
of the largest U.S. companies. Such revelations have contributed to a shaky
market as investors have lost confidence in corporate financial disclosures,
accounting and audit practices, executive compensation, and the due diligence of
professional investors and analysts. Plus, the corporate scandals have
exacerbated concerns already weighing on investors, such as the threat of
further terrorist attacks and the seemingly irreconcilable hostilities in the
Middle East.
Despite these worries, the economy appears to be on track for a moderate
recovery. Underlying economic fundamentals are improving, albeit more slowly
than anticipated. Leading economic indicators -- such as housing and
construction permits, orders for durable goods and manufacturing
surveys -- continue to support expectations for improving growth. Corporate
profits are looking up and should continue to do so, with consumer demand
growing, inventories declining and some excess capacity reduced. In addition,
new unemployment claims continue to decrease, signaling that a gradual
recuperation in employment conditions is underway.
While the U.S. economy is on track for a modest recovery, global economies are
also gaining ground, though global markets have been set back due to the turmoil
in the U.S. The U.S. dollar has weakened as capital flows have moved to markets
with lower valuations and improving prospects and as the Federal Reserve Board
(the "Fed") has signaled that U.S. monetary policy is on hold. Prospects in
Asia, including Japan, seem to be showing particular improvement.
VOLATILITY IN THE EQUITY MARKETS
Most areas of the equity markets have been challenging for investors so far this
year. In a series of declines at the end of June, the S&P 500 approached lows
not
1
TO OUR SHAREHOLDERS
--------------------------------------------------------------------------------
[VOLATILITY IN THE BROAD STOCK
MARKET LINE GRAPH]
[Download Table]
S&P 500 INDEX
-------------
2-Jan '02 1154.67
1165.27
1172.51
1164.89
1160.71
1155.14
1156.55
1145.60
1138.41
1146.19
1127.57
1138.88
1127.58
1119.31
1128.18
1132.15
1133.28
1133.06
1100.64
1113.57
31-Jan '02 1130.20
1122.20
1094.44
1090.02
1083.51
1080.17
1096.22
1111.94
1107.50
1118.51
1116.48
1104.18
1083.34
1097.98
1080.95
1089.84
1109.43
1109.38
1109.89
28-Feb '02 1106.73
1131.78
1153.84
1146.14
1162.77
1157.54
1164.31
1168.26
1165.58
1154.09
1153.04
1166.16
1165.55
1170.29
1151.85
1153.59
1148.70
1131.87
1138.49
1144.58
28-Mar '02 1147.39
1146.54
1136.76
1125.40
1126.34
1122.73
1125.29
1117.80
1130.47
1103.69
1111.01
1102.55
1128.37
1126.07
1124.47
1125.17
1107.83
1100.96
1093.14
1091.48
1076.32
1065.45
30-Apr '02 1076.92
1086.46
1084.56
1073.43
1052.67
1049.49
1088.85
1073.01
1054.99
1074.56
1097.28
1091.07
1098.23
1106.23
1091.88
1079.88
1086.02
1097.08
1083.82
1074.55
1067.66
1064.66
31-May '02 1067.14
1040.68
1040.69
1049.90
1029.15
1027.53
1030.74
1013.60
1020.26
1009.56
1007.27
1036.17
1037.11
1019.99
1006.29
989.13
992.72
976.14
973.53
990.64
28-Jun '02 989.82
seen since September 11th; for the six months ending June 30, the Index returned
-13.16%. As large cap stocks suffered throughout the first half of the year,
smaller stocks fared slightly better: the Russell 2000 Index was down only
-4.70%, helped by small cap value stocks. The markets continued this downward
trend early in the third quarter as major equity indices dipped below their
post-9/11 lows.
Certain areas of the equity markets have provided some relief from market
volatility. International markets, as mentioned, have fared slightly better than
the broad U.S. market, and the MSCI EAFE Index returned -1.38% for the first
half of the year. The real estate sector has benefited from low interest rates
and investors' preference for high dividend yields, and the NAREIT Index
returned 13.68% for the period.
HIGH QUALITY BONDS BENEFIT FROM STOCK MARKET TURMOIL
Since making aggressive interest rate cuts in 2001, the Fed has taken little
action so far this year, adopting a neutral bias and remaining cautious about
raising interest rates. As expectations for the Fed to raise interest rates
moved out, interest rates fell, bond prices moved higher, and Treasuries were
the primary beneficiaries, as investors fled from stocks to the stability of
higher quality bonds. For the six months ended June 30, investment-grade bonds,
as represented by the Lehman Aggregate Bond Index, returned 3.79%.
Non-investment-grade bonds, however, suffered in the period due to the corporate
accounting scandals and returned - 4.31%, as measured by the Merrill Lynch U.S.
High Yield Index.
AN OUTLOOK FOR THE INVESTMENT ENVIRONMENT
Recent proposals to institute new legislation and reforms on corporate
accountability from President Bush, the Securities & Exchange Commission, and
the Financial Accounting Standards Board have yet to stabilize the markets. The
new requirement for CEOs to swear to the accuracy of their financial reports,
effective August 14, is leading to market tension and some soul searching by
corporate executives.
Despite the pessimism in the markets, the second quarter earnings season has so
far seen some fairly good results. Economic fundamentals are gradually
improving, equity valuations have become much more reasonable, and technical
indicators of sentiment are consistent with levels historically seen at market
bottoms. In addition, it is likely that the Fed will not risk raising interest
rates until the equity markets stabilize and the economic recovery appears
firmly on track, pushing any tightening move potentially into 2003. Indeed,
there has been some speculation that the Fed
2
TO OUR SHAREHOLDERS
--------------------------------------------------------------------------------
may ease rates further in the near-term to help the economy avoid a "double dip"
recession. Fiscal policy, however, may begin to put pressure on interest rates
as tax revenues decline and Congress passes new spending measures. One concern
is that falling stock prices will convince consumers to stop spending and
businesses to defer expansion plans. Such a scenario could hamper further
improvements in economic growth and cause the recovery to lose momentum.
With the market deeply oversold and investor sentiment at levels generally seen
at market bottoms, we believe some favorable investment opportunities should
arise. As economic indicators appear to be stable and improving, our long-term
outlook for stocks is constructive.
VISIT US ONLINE
As always, you can find the Investment Team's latest views of the market
environment at www.columbiafunds.com. Once online, you can also find news about
recent developments at Columbia Funds and access your account information over a
secure connection. In addition, educational articles and planning calculators
can help guide you as you manage your investments with us. If you have any
questions about the Web site or about your account, please contact one of our
Investor Services Representatives at 1-800-547-1707 (from 7:30 a.m. to 5:00
p.m., Pacific Standard Time).
If you've been managing significant assets on your own and would like to receive
some professional assistance, please inquire about a Private Management Account
(PMA). Through this fee-based service, Columbia can manage your mutual fund
account of $150,000 or more on your behalf. For more information about a PMA,
please call toll-free 1-866-651-4563.
Thank you for your continued confidence in Columbia Funds. We look forward to
serving you in the months and years ahead.
Sincerely,
/s/ Jeff B. Curtis
Jeff B. Curtis
President
Columbia Funds Management Company
/s/ Richard J. Johnson
Richard J. Johnson
Chief Investment Officer
Columbia Funds Management Company
August 2002
3
INVESTMENT REVIEWS
--------------------------------------------------------------------------------
COLUMBIA COMMON STOCK FUND
GROWTH OF $10,000 OVER 10 YEARS [LINE GRAPH]
[Download Table]
CCSF S&P
---- ---
6/30/92 10000.00 10000.00
6/30/93 11906.00 11363.00
6/30/94 12404.00 11523.00
6/30/95 14752.00 14527.00
6/30/96 18690.00 18306.00
6/30/97 23879.00 24656.00
6/30/98 29753.00 32095.00
6/30/99 36941.00 39397.00
6/30/00 43691.00 42253.00
6/30/01 34489.00 35982.00
6/30/02 26997.00 29509.00
AVERAGE ANNUAL TOTAL RETURNS
As of June 30, 2002
[Download Table]
CCSF S&P 500
------ -------
1 Year -21.73% -17.99%
5 Years 2.49% 3.66%
10 Years 10.44% 11.43%
---------------
Past performance is not predictive of future results. The S&P 500 Index is an
unmanaged index generally considered representative of the U.S. stock market.
BEAR CONTINUES TO CLAW
After beginning the year 2002 with relatively flat returns in the first quarter,
the stock market resumed its volatile path in the second quarter as investor
confidence was dealt several blows. In addition to continued threats of
terrorism and hostilities in the Middle East, investors were barraged by bad
news regarding corporate accounting and the quality of reported earnings. In
this uncertain environment, Columbia Common Stock Fund returned -14.92% for the
six months ended June 30, 2002. In comparison, the S&P
500 Index returned -13.16%.
POSITIVE ECONOMIC NEWS OVERSHADOWED
The economy appeared to be on track for a modest recovery
as corporate profits and economic activity accelerated in
the first quarter of 2002. However, despite these
positive developments in fundamentals, the economic
recovery was overshadowed by concerns over the quality of
reported earnings and corporate governance. Larger cap
companies suffered more than smaller cap companies, as
valuations continued to compress for the former. As the
list of suspected culprits of accounting irregularities
grew in the second quarter, the market responded with one
of its worst quarters since World War II, with the S&P
500 Index shedding -13.40%.
TECH, TELECOM AND MEDIA STRUGGLE
The technology, telecommunications and media sectors
struggled throughout much of the period and had an
overall negative impact on Fund performance. Adelphia
Communications was our worst holding in the media area.
The position was sold due to reports that the management
group of this cable operator had deceived investors and,
therefore, had lost all credibility.
In addition, Tyco International, a diversified industrial
holding, was a very weak performer in the first half of the year. Tyco is yet
another company where it appears that management has misled shareholders. By
taking early action in January, however, we were able to mitigate losses to the
portfolio: we reduced our holdings when the stock was valued in the mid-$50
range, due to concerns over the generation of cash flow at the company.
DEFENSIVE ISSUES MAKE GAINS
Despite a number of disappointments during the period, the Fund did benefit from
certain defensive holdings. For instance, Raytheon outperformed nicely in the
first
4
INVESTMENT REVIEWS
--------------------------------------------------------------------------------
part of the year. A provider of electronic goods for the defense industry, as
well as for commercial markets, Raytheon is benefiting from rising defense
budgets and an increasing ability to generate strong cash flow. In the finance
industry, Bank of America maintained its status as a stalwart holding. The
company continued to show strong earnings and dividend yield as a steep yield
curve and inwardly focused management team continued to
"block and tackle" in a relatively decent environment for
financial stocks.
ON TRACK FOR RECOVERY
While the pace of the anticipated rebound can be debated,
we continue to believe that the economy is on track for a
modest recovery. Therefore, we are seeking companies that
are well positioned to benefit from revitalized U.S. and
global economies. We have been adding to companies and
industries that can benefit from a weaker dollar, such as
multinational firms with significant operations abroad. We
are also maintaining a lower weighted average market cap
than our benchmark index, believing that smaller cap issues
will outpace the largest cap companies. Until investor
confidence stabilizes, however, it is likely that the
markets will remain volatile.
Guy W. Pope
On behalf of the Columbia Investment Team
TOP TEN HOLDINGS
% of Net Assets
[Download Table]
6/30/02 12/31/01
Pfizer, Inc. 3.9 3.5
Citigroup, Inc. 3.7 4.5
Wal-Mart Stores, Inc. 3.1 2.5
General Electric Co. 2.5 3.8
Microsoft Corp. 2.5 3.2
Exxon Mobil Corp. 2.4 2.7
Bank of America Corp. 2.4 1.7
Pharmacia Corp. 2.3 1.4
American Express Co. 2.1 1.5
American International Group, Inc. 1.9 1.9
------------------------
TOP FIVE SECTORS
% of Net Assets
[Download Table]
6/30/02 12/31/01
Financial Services 22.7 19.0
Consumer Discretionary & Services 18.7 15.1
Health Care 16.1 14.9
Technology 9.9 17.0
Other/Multi-Sector Companies 8.1 10.5
5
INVESTMENT REVIEWS
--------------------------------------------------------------------------------
COLUMBIA GROWTH FUND
GROWTH OF $10,000 OVER 20 YEARS [LINE GRAPH]
[Download Table]
COLUMBIA GROWTH FUND S&P 500 INDEX RUSSELL 1000 GROWTH
-------------------- ------------- -------------------
6/30/92 10000.00 10000.00 10000.00
6/30/93 12315.00 11363.00 10903.00
6/30/94 12554.00 11523.00 10875.00
6/30/95 15519.00 14527.00 14193.00
6/30/96 19705.00 18306.00 18142.00
6/30/97 24428.00 24656.00 23824.00
6/30/98 32660.00 32095.00 31298.00
6/30/99 40123.00 39397.00 39836.00
6/30/00 48745.00 42253.00 50062.00
6/30/01 35014.00 35982.00 31955.00
6/30/02 24553.00 29509.00 23494.00
AVERAGE ANNUAL TOTAL RETURNS
As of June 30, 2002
[Download Table]
RUSSELL
1000 S&P
CGF GROWTH 500
------ ------- -------
1 Year -29.88% -26.48% -17.99%
5 Years 0.10% -0.28% 3.66%
10 Years 9.40% 8.92% 11.43%
---------------
Past performance is not predictive of future results. The S&P 500 Index is an
unmanaged index generally considered representative of the U.S. stock market.
The Russell 1000 Growth Index is an unmanaged index that measures the
performance of those Russell 1000 companies with higher price-to-book ratios and
higher forecasted growth values (the Russell 1000 Index measures the performance
of the 1000 largest U.S. companies based on total market capitalization).
GROWTH STOCKS STRUGGLE IN FIRST HALF
During the six months ended June 30, 2002, growth stocks plummeted. Continued
disappointment in technology spending trends, persistent terrorist threats,
and -- most troubling -- the uprooting of confidence in the capital markets have
depressed share prices in sickening fashion. During the period, the Fund
declined -23.13%, while the Russell 1000 Growth Index returned -20.78% and the
S&P 500 Index returned -13.16%.
CORPORATIONS COME UNDER INCREASED SCRUTINY
Following the aftermath of the 9/11 tragedy, the overall
outlook for the country began to improve, and the stock
market responded. A market rally was supported into early
2002 by significant monetary and fiscal stimulus,
evidence of an economic rebound, military success in
Afghanistan, and a sense that disparate interests at home
and abroad were working together to solve economic and
terrorist challenges. However, the Enron debacle and the
disclosure of other corporate deceptions contributed to
widespread paranoia over the credibility of the U.S.
system of financial reporting, auditing and other checks.
The markets reflected increased unease with greater
volatility, as some indices even began to flirt with
post-9/11 lows. Companies that suffered most from
"Enronitis" included those whose growth has been
supported by acquisitions and those that had depreciated
large capital investments. Investors sought refuge in
what they considered to be "easy-to-understand" organic
growth stocks and "safe" value stocks.
EXPOSURE TO TYCO HURTS PERFORMANCE
The greatest negative impact on the Fund's performance
was Tyco International, which succeeded Enron as the
alleged poster child for aggressive, and perhaps suspect,
accounting practices. While the SEC thoroughly
investigated the company in 2000 and has examined
subsequent acquisitions, suspicions have crushed the
stock's valuation. Tyco's new CEO and expanded board
should provide some relief on the issue of credibility
and enable the stock to recover.
Cyclical companies whose prospects for profit rebounds have been delayed -- such
as Flextronics, Siebel Systems and Clear Channel Communications -- also hurt
Fund performance in the period. However, we believe these stocks should perform
well as the economic recovery leads to an improvement in corporate discretionary
spending.
6
INVESTMENT REVIEWS
--------------------------------------------------------------------------------
TOP TEN HOLDINGS
% of Net Assets
[Download Table]
6/30/02 12/31/01
Microsoft Corp. 5.5 5.0
Pfizer, Inc. 5.3 4.4
Wal-Mart Stores, Inc. 3.7 2.7
General Electric Co. 3.4 4.5
Baxter International, Inc. 2.6 2.4
Johnson & Johnson 2.5 1.0
Viacom, Inc. (Class B) 2.4 1.5
Pharmacia Corp. 2.2 1.7
Coca-Cola Co. 2.1 --
American International Group, Inc. 2.1 2.2
------------------------
TOP FIVE SECTORS
% of Net Assets
[Download Table]
6/30/02 12/31/01
Consumer Discretionary & Services 24.8 19.7
Health Care 22.4 20.3
Technology 19.5 26.9
Financial Services 13.6 8.9
Consumer Staples 7.0 2.8
In the difficult first half of 2002, the Fund's performance was supported by
competitively strong companies that have franchises, are
gaining market share, and that serve the consumer
primarily. Such companies include Intuit, Electronic Arts,
Kraft Foods, Kellogg and AutoZone. We sold our holdings in
Kellogg during the period, taking profits. As of June 30,
we remain optimistic about the growth prospects of the
remaining companies.
MARKETS IN TURMOIL
The investment environment is, frankly, in turmoil. Stocks
have been in a persistent and ugly decline, and confidence
in the integrity of U.S. corporations, reporting and
markets is very low. In addition, investors increasingly
worry that the weakness in the stock market will undermine
the economic recovery in place. Indeed, it appears as
though we are experiencing the complete opposite of the
manic euphoria associated with the market peak of early
2000.
Nevertheless, there is some cause for optimism. We observe
that the market is deeply oversold, investor sentiment is
at levels generally seen at market bottoms, mutual fund
redemption activity is consistent with historical market
troughs, and economic indicators are solid. With companies
such as Pfizer, Baxter International, PepsiCo and Johnson &
Johnson trading at mid-teen price/earnings ratios (on 2003
estimates), we see some favorable valuation opportunities
emerging.
Our long-term outlook for stocks remains constructive, and
we are cognizant that market bottoms develop when the
environment seems most dire.
Alexander S. Macmillan
Portfolio Manager
7
INVESTMENT REVIEWS
--------------------------------------------------------------------------------
COLUMBIA INTERNATIONAL STOCK FUND
GROWTH OF $10,000 SINCE INCEPTION [LINE GRAPH]
[Download Table]
COLUMBIA INTERNATIONAL STOCK FUND MSCI EAFE INDEX
--------------------------------- ---------------
10/1/92 10000.00 10000.00
12/31/92 10060.00 9623.00
12/31/93 13417.00 12794.00
12/31/94 13086.00 13825.00
12/31/95 13760.00 15422.00
12/31/96 16042.00 16403.00
12/31/97 17882.00 16740.00
12/31/98 20177.00 20144.00
12/31/99 31865.00 25643.00
12/31/00 24651.00 22063.00
12/31/01 20098.00 17384.00
6/30/02 19994.00 17148.00
AVERAGE ANNUAL TOTAL RETURNS
As of June 30, 2002
[Download Table]
MSCI
CISF EAFE
----- -------
1 Year -8.47% -9.22%
5 Years 1.16% -1.26%
Since Inception (10/1/92) 7.33% 5.66%
---------------
Past performance is not predictive of future results. The MSCI EAFE Index is an
unmanaged, market-weighted index composed of companies representative of the
market structure of 20 developed market countries in Europe, Australasia and the
Far East.
FUND PERFORMANCE
For the first half of 2002, Columbia International Stock Fund returned -0.50%
versus the -1.38% return of the MSCI EAFE Index. Over the long term, the Fund
has returned 7.33% on an average annual basis since its 1992 inception, compared
to 5.66% for the Index.
SECOND QUARTER ERASES EARLY GAINS
After making modest gains in the first three months of
the year, international stock markets overall encountered
sharp weakness in the second quarter. The distinct
weakness in U.S. markets had a pronounced impact on many
foreign counterparts, especially in Europe where
telecommunications and technology shares were markedly
lower. There were, however, some very positive influences
on the portfolio, including the strong gains experienced
by foreign currencies, primarily in the second quarter.
For several years, the strong U.S. dollar (and weaker
foreign currencies) depressed the Fund's returns. It
appears that we are now in a new environment where
exchange rates may support the portfolio's performance.
UNDERWEIGHTING EUROPEAN MARKETS
Some strategic changes were made to the portfolio in the
first quarter of the year and maintained in the second
quarter, namely underweighting European markets and
emphasizing Asian markets. In Europe, we had strong
success with financials (banks and insurance) early in
the period. In the second quarter, however, accounting
scandals and financial market weakness put pressure on
these institutions. Therefore, we have reduced positions
slightly and, as of June 30, are maintaining an emphasis
in only what appear to be the largest, strongest
financial stocks.
ASIAN MARKETS PRESENT OPPORTUNITY
Throughout the period, we maintained a heavy weighting in
Japan, which continues to outperform most other major
markets. The Japanese economy continues to suffer from
lack of strong political will to effect some structured changes. However, Japan
is very sensitive to international economic activity and is benefiting from the
global recovery. We believe this cyclical upturn will result in attractive
investment opportunities. As of June 30, we are committed to some key blue chip
stocks, such as Sony Corp., Honda Motor Co. and Canon. We also have a strong
emphasis on
8
INVESTMENT REVIEWS
--------------------------------------------------------------------------------
the retailing sector, and some representative holdings include Ito-Yokado,
Shimamura and Daimaru.
In other Asian markets, we have had a heavy exposure to South Korea. Pacific
Corp., the leading Korean cosmetics company, is still the portfolio's largest
holding in that country. Earlier this year, we returned to Singapore and, more
importantly, Thailand. A research visit to the latter
confirmed that a sustainable economic recovery is underway,
and we have found some compelling investments. Land &
Houses Public Co. is the largest and strongest residential
builder in Thailand; with mortgage rates down sharply,
construction activity has gathered momentum steadily.
Another holding, Big C Supercenter, is a well-placed
retailer benefiting from the return of consumer confidence.
GLOBAL RECOVERY ANTICIPATED
Investors have been tested so far in 2002. While
international markets declined in recent months, currency
gains have largely offset the losses. We expect
international markets to recover in the second half of
2002, as economic growth is picking up globally and is
especially improving in Asia. Furthermore, we believe many
foreign stock markets will break their recent correlation
with the performance of U.S. markets.
James M. McAlear
Portfolio Manager
TOP TEN HOLDINGS
% of Net Assets
[Download Table]
6/30/02 12/31/01
Royal Bank of Scotland Group plc (United Kingdom) 1.5 1.1
Ito-Yokado Co., Ltd. (Japan) 1.5 1.0
Barclays plc (United Kingdom) 1.4 1.5
Sony Corp. (Japan) 1.4 --
Canon, Inc. (Japan) 1.4 1.3
Novartis AG (Switzerland) 1.4 1.0
AEON Co., Ltd. (Japan) 1.4 1.2
Pacific Corp. (Korea) 1.4 1.2
BNP Paribas (France) 1.3 1.4
BP plc, ADR (United Kingdom) 1.3 1.4
------------------------
TOP FIVE COUNTRIES
% of Net Assets
[Download Table]
6/30/02 12/31/01
Japan 21.3 17.6
United Kingdom 19.2 25.6
France 6.3 9.4
Switzerland 5.9 6.7
Netherlands 5.5 5.5
9
INVESTMENT REVIEWS
--------------------------------------------------------------------------------
COLUMBIA SPECIAL FUND
[GROWTH OF $10,000 OVER 10 YEARS
LINE GRAPH]
[Download Table]
RUSSELL MIDCAP GROWTH
COLUMBIA SPECIAL FUND RUSSELL MIDCAP INDEX INDEX
--------------------- -------------------- ---------------------
6/30/92 10000.00 10000.00 10000.00
6/30/93 12894.00 12294.00 11864.00
6/30/94 13954.00 12458.00 12110.00
6/30/95 16792.00 15373.00 15310.00
6/30/96 21455.00 18830.00 18922.00
6/30/97 23290.00 23153.00 22254.00
6/30/98 26522.00 28939.00 27599.00
6/30/99 29151.00 32212.00 33205.00
6/30/00 47303.00 36284.00 49332.00
6/30/01 37270.00 36629.00 33788.00
6/30/02 30465.00 33250.00 24889.00
AVERAGE ANNUAL TOTAL RETURNS
As of June 30, 2002
[Download Table]
Russell
Russell Midcap
CSF Midcap Growth
------- ------- -------
1 Year -18.26% -9.22% -26.34%
5 Years 5.52% 7.51% 2.26%
10 Years 11.78% 12.77% 9.55%
Past performance is not predictive of future results. The Russell Midcap Index
is an unmanaged index that measures the performance of the 800 smallest
companies in the Russell 1000 Index, which represent approximately 24% of the
total market capitalization of the Russell 1000 Index. The Russell Midcap Growth
Index is an unmanaged index that measures the performance of those Russell
Midcap companies with higher price-to-book ratios and higher forecasted growth
values.
GROWTH STOCKS UNDERPERFORM
Following a rally in the closing weeks of 2001, stocks paused early in 2002
before embarking on a volatile path for the remainder of the first half of the
year. In addition, value stocks outperformed growth stocks, continuing a trend
that has held for more than two years now. For the six months ended June 30,
Columbia Special Fund generated a return of -12.76%. In comparison, the Russell
Midcap Growth Index had a return of -19.70% and the
Russell Midcap Index produced a return of -5.71%.
CORPORATE SCANDAL AFFLICTS MARKET
First quarter returns were relatively flat for the broad
market, as the market worried that inflated expectations
for economic growth were priced into stocks late in 2001.
These concerns gave way to greater problems in the second
quarter, as investor confidence weakened from a
combination of new accounting scandals, earnings misses,
terrorist threats and continued hostilities in the Middle
East. In addition, the sluggish pace of the economic
recovery provided little comfort to investors. In this
environment, companies that provided solid performance
were those that were able to meet or exceed earnings
expectations.
In the first quarter, sectors that outperformed included
retail, finance and energy. The Fund benefited from an
overweighting in retail, as holdings such as TriCon
Global and The Limited (which had acquired Intimate
Brands) posted gains for the period. Good stock selection
in the technology sector also paid off, as names like
National Semiconductor and Sungard Data Systems did well.
The finance and energy sectors exceeded investor
expectations in the quarter, lifting the returns of the
indices. The Fund did not benefit fully from the upsurge
in finance or energy, as both sectors had been
underweighted in the portfolio.
As the market environment deteriorated in the second
quarter, the Fund continued to experience some compelling
returns from the retail, education and health care
services sectors. Holdings such as WellPoint Health
Networks, Dollar Tree Stores and Intuit contributed
positively to the Fund's performance.
10
INVESTMENT REVIEWS
--------------------------------------------------------------------------------
TECHNOLOGY MIRED IN BEAR MARKET
The technology sector has been in a bear market since March 2000, with earnings
and valuations crumbling. Throughout the first half of 2002, the sector again
faced earnings misses and downward revisions. Despite the Fund's underweighting
in technology, the sector still had an overall negative impact on performance.
If earnings visibility can be restored, we believe that
good values should appear in some names.
The biotechnology sector has also underperformed so far
this year. A number of companies have struggled to obtain
regulatory approval on new drugs, while others have battled
generic competition. Holdings like MedImmune and Genentech
were a drag on the portfolio's performance.
DIFFICULT ENVIRONMENT LIKELY TO CONTINUE
We expect the third quarter to remain challenging for the
stock market, but we are optimistic that conditions will
improve in the fourth quarter. The market is technically
oversold and investor pessimism is high, conditions that
often precede a market rally. However, for any sustainable
upturn to occur, investors need to regain confidence in the
accuracy of corporate financial reports and the durability
of the economic recovery. Renewed confidence should lead to
increased spending by consumers. Higher demand would then
enable businesses to expand and, eventually, contribute to
rising earnings estimates.
Richard J. Johnson
Portfolio Manager
TOP TEN HOLDINGS
% of Net Assets
[Download Table]
6/30/02 12/31/01
HCA, Inc. 3.2 0.8
Intuit, Inc. 3.1 2.1
WellPoint Health Networks, Inc. 3.0 2.5
Caremark Rx, Inc. 2.6 2.2
Laboratory Corporation of America Holdings 2.3 1.9
HealthSouth Corp. 2.3 2.0
Brinker International, Inc. 2.1 1.6
The Gap, Inc. 1.8 --
Electronic Arts, Inc. 1.7 0.5
Hispanic Broadcasting Corp. 1.7 1.0
------------------------
TOP FIVE SECTORS
% of Net Assets
[Download Table]
6/30/02 12/31/01
Consumer Discretionary & Services 29.3 26.3
Health Care 25.6 35.9
Technology 10.4 14.5
Financial Services 6.3 4.9
Producer Durables 5.4 7.4
11
INVESTMENT REVIEWS
--------------------------------------------------------------------------------
COLUMBIA SMALL CAP FUND
GROWTH OF $10,000 SINCE INCEPTION [LINE GRAPH]
[Download Table]
COLUMBIA SMALL CAP FUND RUSSELL 2000 INDEX RUSSELL 2000 GROWTH INDEX
----------------------- ------------------ -------------------------
10/1/96 10000.00 10000.00 10000.00
12/31/96 10762.00 10520.00 10026.00
12/31/97 14432.00 12872.00 11324.00
12/31/98 15109.00 12544.00 11464.00
12/31/99 24045.00 15211.00 16404.00
12/31/00 25452.00 14752.00 12723.00
12/31/01 21840.00 15119.00 11548.00
6/30/02 18744.00 14409.00 9547.00
AVERAGE ANNUAL TOTAL RETURNS
As of June 30, 2002
[Download Table]
RUSSELL
RUSSELL 2000
CSCF 2000 GROWTH
------ ------- -------
1 Year -21.86% -8.59% -25.01%
5 Years 8.89% 4.44% -1.98%
Since Inception (10/1/96) 11.65% 6.50% -0.80
---------------
Past performance is not predictive of future results. The Russell 2000 is an
unmanaged index generally considered representative of the market for small,
domestic stocks. The Russell 2000 Growth Index is an unmanaged index that
measures performance of those Russell 2000 companies with higher price-to-book
ratios and higher forecasted growth values.
A DIFFICULT FIRST HALF
Reflecting a difficult market environment, Columbia Small Cap Fund posted a
return of -14.19% for the six months ended June 30, 2002. In comparison, the
Russell 2000 Growth Index returned -17.35% and the Russell 2000 Index returned
-4.70%. Over the long-term, however, the Fund has outperformed both indices,
generating an average annual return of 11.65% since its
1996 inception. For the same period, the Russell 2000
Growth Index and the Russell 2000 Index generated average
annual returns of -0.80% and 6.50%, respectively.
STOCKS MOVE LOWER
The stock market's heady gains at the close of 2001 were
not to be repeated in the first half of 2002 as prices
were plagued by accounting scandals, earnings misses and
terrorist threats. In addition, concerns about the pace
of the economic recovery did little to ease investor
worries. As the first half of the year came to a close,
the Dow Jones Industrial Average had fallen 6.91% to
close at 9243.26, while the NASDAQ composite had dropped
24.84%, closing at 1463.21 and approaching lows not seen
since the weeks following September 11.
The technology sector suffered throughout the period.
Technology stocks have been mired in a bear market since
March of 2000, as both earnings and valuations have
crumbled. During the period, the stock of many technology
companies fell on news of missed earnings or as estimates
were revised downward. The Fund was underweighted in the
sector versus the Russell 2000 Growth Index, which helped
its relative performance. If earnings visibility can be
restored, good values should appear in some technology
stocks going forward.
The telecommunications, biotechnology and specialty
pharmaceuticals sectors were also hard hit during the
period. Telecommunications companies suffered as key
players, such as WorldCom (not a portfolio holding), were
investigated for accounting irregularities. Biotechnology
and specialty pharmaceutical firms battled other
concerns, including regulatory approval on new drugs and
generic competition.
12
INVESTMENT REVIEWS
--------------------------------------------------------------------------------
SOME STEADY PERFORMERS
Despite the volatile and difficult environment, several holdings contributed
positively to the Fund's performance. The health care services sector was a
solid performer throughout the period. Holdings such as Caremark Rx and Express
Scripts boosted performance in the first quarter, while Trigon Healthcare and
First Health Corp. made their contributions in the second.
In addition, the education sector continued to perform well
for the Fund, which received positive contributions from
Education Management and Strayer Education (which was sold
during the second quarter).
LOOKING FORWARD
We expect the third quarter to remain challenging for the
stock market, but are optimistic that conditions will
improve later in the year and into 2003. The market is
technically oversold and investor pessimism is high; such
conditions often precede a market rally. However, for any
sustainable upturn to occur, investors must regain
confidence in the quality of corporate financial reporting
and the durability of the economic recovery. This renewed
confidence should lead to increased spending by consumers.
An uptick in demand could then enable businesses to expand
and, eventually, contribute to rising earnings estimates.
Richard J. Johnson
Portfolio Manager
TOP TEN HOLDINGS
% of Net Assets
[Download Table]
6/30/02 12/31/01
DaVita, Inc. 2.3 2.4
First Health Group Corp. 2.2 1.6
Caremark Rx, Inc. 2.2 2.0
Entercom Communications Corp. 1.8 1.4
Lamar Advertising Co. 1.8 1.8
Sylvan Learning Systems, Inc. 1.6 1.9
Trigon Healthcare, Inc. 1.6 0.8
Zale Corp. 1.4 1.9
Willis Group Holdings Ltd. 1.4 0.8
Mid Atlantic Medical Services, Inc. 1.4 --
------------------------
TOP FIVE SECTORS
% of Net Assets
[Download Table]
6/30/02 12/31/01
Health Care 25.5 32.2
Consumer Discretionary & Services 25.5 24.2
Producer Durables 10.4 7.2
Technology 8.0 17.0
Material & Processing 6.8 3.9
13
INVESTMENT REVIEWS
--------------------------------------------------------------------------------
COLUMBIA REAL ESTATE EQUITY FUND
GROWTH OF $10,000 SINCE INCEPTION [LINE GRAPH]
[Download Table]
COLUMBIA REAL ESTATE EQUITY FUND NAREIT INDEX
-------------------------------- ------------
4/01/94 10000 10000
12/31/94 10176 9978
12/31/95 11892 11502
12/31/96 16446 15558
12/31/97 20515 18710
12/31/98 17985 15434
12/31/99 17545 14721
12/31/00 22605 18603
12/31/01 23828 21195
06/30/02 26434 24090
AVERAGE ANNUAL TOTAL RETURNS
As of June 30, 2002
[Download Table]
CREF NAREIT
------ ------
1 Year 10.43% 16.21%
5 Years 8.21% 7.94%
Since Inception (4/1/94) 12.42% 11.77%
---------------
Past performance is not predictive of future results. The National Association
of Real Estate investment Trusts Index (NAREIT) is an unmanaged index that
tracks performance of all publicly traded equity REITs.
STRONG PERFORMANCE IN EARLY 2002
Stability, a lack of financial accounting controversy, and high dividend yields
allowed REITs to continue their strong performance in the first half of 2002.
For the six months ended June 30, the NAREIT Index returned 13.68%, while
Columbia Real Estate Equity Fund returned 10.95%. Over the long term, however,
the Fund has outperformed the Index, returning 12.42% on an average annual basis
since its 1994 inception, as compared to the NAREIT Index
return of 11.17% for the same period.
PRESSURE ON OCCUPANCIES, RENTS
The economic recession has put pressure on occupancies
and rents, causing REIT earnings estimates for the year
2002 to fall (it is normal for REIT estimate reductions
to lag behind estimates for the broader market). However,
the low level of new supply and a Fed seeking to boost
economic growth bode well for improved growth in 2003.
The industrial and retail sectors are best positioned to
benefit from expectations of gradually improving economic
growth rates.
TOP REIT PERFORMERS
In the first half of 2002, the retail, industrial and
lodging sectors were the top REIT performers. These
sectors excelled from a combination of improved
fundamentals (such as higher leasing activity for retail
and rising manufacturing activity for industrial), the
anticipation of improving fundamentals, and low earnings
multiples relative to other REITs. The retail sector
handily outperformed the Index, and the Fund's weighting
here contributed greatly to its performance.
The Fund's underweighting in the lodging sector
negatively impacted performance early in the period.
However, the Fund's underweighting in this sector should
be a benefit going forward: the slow economic recovery
has recently impacted lodging stocks, and the
expectations for improving fundamentals in this sector
were revised downward in the second quarter.
14
INVESTMENT REVIEWS
--------------------------------------------------------------------------------
OFFICE SECTOR UNDERPERFORMS
The Fund's overweighting of the office sector accounted for much of its
underperformance relative to the Index. The protracted nature of the economic
recovery has delayed the anticipated rebound in the office markets. As office
REITs suffered from perceptions of declining growth rates, the decline in
valuations was exacerbated by the prospect of further
estimate reductions and a recovery that has been pushed out
until late 2003. In recognition of these factors, the Fund
has lowered its exposure to the sector, despite valuations
that are still attractive.
INDIVIDUAL HOLDINGS OF NOTE
The best individual performers in the Fund included General
Growth Properties and Simon Property Group (both mall
companies), as well as ProLogis (an industrial REIT). Each
of these companies benefited by beginning the year with low
earnings multiples and perceptions of improving prospects.
Conversely, the worst performers for the Fund had
moderating earnings expectations; these companies included
AvalonBay (an apartment REIT) and Equity Office Properties
(an office REIT).
FAVORABLE ENVIRONMENT FOR REITS
A favorable environment for REITs has been fostered by
attempts to maintain a healthy economic environment through
both fiscal and monetary policy, a low level of new supply
and attractive relative valuations. The Fund will continue
to focus on companies with strong, experienced management
teams and the best prospects for sustainable future growth.
David W. Jellison
Portfolio Manager
TOP TEN HOLDINGS
% of Net Assets
[Download Table]
6/30/02 12/31/01
Equity Office Properties Trust 5.9 9.5
General Growth Properties, Inc. 5.6 4.9
Vornado Realty Trust 5.4 5.0
ProLogis 5.4 2.4
Simon Property Group, Inc. 5.0 4.8
iStar Financial, Inc. 4.8 4.8
Cousins Properties, Inc. 4.7 5.9
Trizec Properties, Inc. 3.6 4.2
Apartment Investment & Management Co. (Class A) 3.5 --
CarrAmerica Realty Corp. 3.5 4.0
------------------------
TOP FIVE SECTORS
% of Net Assets
[Download Table]
6/30/02 12/31/01
Office 24.3 25.6
Industrial 20.2 16.0
Apartments 14.6 15.0
Shopping Malls 13.9 9.8
Community Centers 8.8 8.0
15
INVESTMENT REVIEWS
--------------------------------------------------------------------------------
COLUMBIA TECHNOLOGY FUND
[GROWTH OF $10,000 SINCE
INCEPTION LINE GRAPH]
[Download Table]
COLUMBIA TECHNOLOGY FUND MERRILL LYNCH 100 TECHNOLOGY INDEX
------------------------ ----------------------------------
11/9/00 10000 10000
12/31/00 8622 7201
12/31/01 6124 4864
6/30/02 4606 3275
AVERAGE ANNUAL TOTAL RETURNS
As of December 31, 2002
[Download Table]
CTF MERRILL
------- 100
TECH
-------------
1 Year -36.76% -43.78%
Since Inception (11/9/00) -38.40% -50.23%
Past performance is not predictive of future results. The Merrill Lynch 100
Technology Index is an equally-weighted, unmanaged index of 100 leading
technology stocks. Fund performance includes a voluntary reimbursement of Fund
expenses by the Advisor. Absent these reimbursements, total returns would have
been lower.
BEAR MARKET CONTINUES FOR TECHNOLOGY
For the six months ended June 30, 2002, Columbia Technology Fund generated a
total return of -24.80%, outperforming its benchmark, the Merrill Lynch 100
Technology Index, which posted a total return of -32.65%.
The technology sector continued to struggle in a bear
market that has persisted since March of 2000. Valuations
have compressed, as many technology companies have been
unable to meet their earnings expectations while others
have revised their expectations downward. These factors
have added to concerns in the broader market -- such as
the quality of reported earnings, the level of investor
confidence and the pace of the expected economic
recovery -- to create a difficult investment environment
for tech stocks. However, valuations for tech stocks are
approaching attractive levels on an historical basis, and
at some point, this sector should provide compelling
investment opportunities.
AREAS OF DISAPPOINTMENT
The Fund's performance was negatively impacted by the
underperformance of various industries throughout the
period. In the first quarter, the telecommunications
industry was the main culprit; it suffered as telecom
carrier capacity remained under pressure. In the second
quarter, the Fund's performance was hindered by its
overweighting in the computer hardware industry. In 2001,
computer hardware stocks had struggled as corporate
spending on information technology (I/T) was cut. These
stocks were set back again this year as an anticipated
recovery in I/T spending was pushed out to 2003. We
reduced our weighting in the computer hardware industry
and expect to maintain an underweighting here until I/T
spending visibly improves.
STOCK SELECTION ENHANCES PERFORMANCE
A number of strategies enabled the Fund to outperform its
benchmark for the period. For instance, the Fund
benefited from good stock selection in the semiconductor
and semiconductor capital equipment industries. These
areas outperformed in 2001 and received an additional
boost on renewed optimism for improvements in capacity
utilization. As of June 30, the Fund continues to invest
in two of the largest semiconductor foundries, Taiwan
Semiconductor and United Microelectronics, which are
expected to grow faster than the industry as a whole.
16
INVESTMENT REVIEWS
--------------------------------------------------------------------------------
Allocating a portion of the portfolio's assets to the defense industry has also
produced favorable results for the Fund. The defense industry is benefiting from
an increase in government spending, and as the market has recognized this growth
in spending, stock prices have moved higher.
In other areas, the Fund made gains in the aerospace and
medical technology industries early in the reporting
period. Later in the period, performance was enhanced by
holdings in the diversified consumer services and
application software industries. For instance, BMC Software
(specializing in systems management software), Electronic
Arts (an electronic game maker) and Intuit (a provider of
tax preparation software) all made positive contributions.
LOOKING AHEAD
We will continue to seek companies with strong management,
superior long-term growth prospects and dominant market
share positions at what we believe to be sustainable
valuations. The Fund has benefited from a defensive posture
so far this year, and we will remain cautious as we
evaluate investment opportunities in the second half of
2002. Though the recovery in I/T spending has been delayed
at least until 2003, we think the Fund is well positioned
to gain from an improvement when it occurs. As the economy
changes course, we believe technology stocks should benefit
from any increase in revenue and earnings projections and
gradually recover.
The Technology Fund Investment Team
TOP TEN HOLDINGS
% of Net Assets
[Download Table]
6/30/02 12/31/01
Electronic Arts, Inc. 3.3 0.5
Electro Scientific Industries, Inc. 2.9 --
United Microelectronics Corp. ADR 2.8 2.6
eBay, Inc. 2.8 --
Intuit, Inc. 2.6 1.4
Microchip Technology, Inc. 2.6 --
Integrated Circuit Systems, Inc. 2.5 0.8
BMC Software, Inc. 2.3 --
Entegris, Inc. 2.3 1.4
Taiwan Semiconductor Manufacturing Company Ltd. ADR 2.2 1.6
------------------------
TOP FIVE INDUSTRIES
% of Net Assets
[Download Table]
6/30/02 12/31/01
Computer Services Software & Systems 16.7 23.3
Electronics: Semiconductors 16.1 18.9
Production Technology Equipment 15.3 14.2
Electronics 5.4 4.7
Consumer Electronics 4.5 2.9
17
INVESTMENT REVIEWS
--------------------------------------------------------------------------------
COLUMBIA STRATEGIC VALUE FUND
[GROWTH OF $10,000 SINCE
INCEPTION LINE GRAPH]
[Download Table]
COLUMBIA STRATEGIC VALUE LIPPER MULTI-CAP VALUE
FUND FUNDS INDEX S&P 500 INDEX
------------------------ ---------------------- -------------
11/9/00 10000 10000 10000
12/31/00 11225 10204 9386
12/31/01 14566 10337 8271
6/30/02 14896 9476 7182
AVERAGE ANNUAL TOTAL RETURNS
As of June 30, 2002
[Download Table]
Lipper
Multi-Cap
CSVF Value S&P 500
------ ----------- -------
1 Year 6.68% -10.89% -17.99%
Since Inception (11/9/00) 28.29% -3.23% -18.68%
Past performance is not predictive of future results. The Lipper Multi-Cap Value
Funds Index reflects equally-weighted performance of the 30 largest mutual funds
within its category. The S&P 500 Index is an unmanaged index generally
considered representative of the U.S. stock market.
FUND CONTINUES TO OUTPERFORM
Columbia Strategic Value Fund continued to outperform the broader market for the
first half of 2002. For the six months ended June 30, the Fund generated a total
return of 2.27% while the S&P 500 returned -13.16% and the Lipper Multi-Cap
Value Funds Index returned -8.32%.
SECOND QUARTER PROVES DIFFICULT
After advancing in the first quarter due to gains in the
energy, capital goods and basic materials sectors, the
Fund was not immune to the harsh environment of the
second quarter and posted negative returns in that
period. As more news of accounting problems surfaced,
investor confidence in the quality of reported earnings
and overall balance sheets fell. In addition, a number of
industries, including technology and media, continued to
suffer as the economic recovery struggled to gain
traction. The holdings in these industries hurt the
Fund's performance in the latter half of the reporting
period.
SHIFTS IN INDUSTRY EMPHASIS
We made a number of shifts in industry weightings
throughout the first six months of the year. For
instance, we reduced our weighting in the technology
sector, where valuations appeared to be high. Although
the technology sector has been in a bear market for over
two years, we experienced some positive performance from
certain individual holdings, like Sandisk, which
manufactures flash memory data storage products.
In other areas of the portfolio, we increased our
weightings in the energy and consumer staples sectors,
which contributed positively to performance. Early in the
period, we also increased our weighting in the capital
goods sector, which provided disappointing returns in the
second quarter.
FOCUS ON INFRASTRUCTURE SPENDING
Throughout the reporting period, we continued to seek
opportunities in infrastructure-related industries. We
believe certain companies are positioned to benefit from
increased U.S. government and industry spending on
infrastructure. As a result, we increased or added new
positions in companies like Fluor Corp., a provider of
design, engineering, procurement and construction
services; Tetra Tech, a provider of resource management
and infrastructure consulting and technical services; URS
Corp., a
18
INVESTMENT REVIEWS
--------------------------------------------------------------------------------
general contractor in various fields; and Washington Group, a service provider
in engineering, construction and program management.
OPPORTUNITY FROM A WEAKER DOLLAR
During the second quarter, the U.S. dollar weakened
substantially. As it is expected to remain weak going
forward, we have been focusing on companies that could
potentially benefit from this situation. Therefore, in the
portfolio we have emphasized multinational companies with
significant international exposure, such as Unilever, Estee
Lauder and Newell Rubbermaid.
In other moves on the international front, we began
building up our positions in stocks issued by Scandinavian
companies during the second quarter. We believe that
companies such as Nokian Renkaat (a tire manufacturer) and
Orkla (a consumer products company) are in a favorable
position to benefit from Russia's revival as an oil
superpower.
EMPHASIZING EMERGING COMPANIES
We continue to seek companies that are attractively valued
in the marketplace and that are demonstrating improving
cash flow and return on investments, or have potential to
do so. We are also placing an emphasis on emerging
companies with strong market positions and solid balance
sheets.
Robert A. Unger
Portfolio Manager
TOP TEN HOLDINGS
% of Net Assets
[Download Table]
6/30/02 12/31/01
Caterpillar Inc. 1.2 --
3M Co. 1.2 0.8
Wachovia Corp. 1.1 0.7
The Estee Lauder Companies, Inc. (Class A) 1.0 --
American International Group, Inc. 1.0 --
Temple-Inland, Inc. 1.0 --
Modine Manufacturing Co. 0.9 --
McDonald's Corp. 0.8 0.4
Principal Financial Group, Inc. 0.8 --
Dillard's, Inc. (Class A) 0.8 --
------------------------
TOP FIVE SECTORS
% of Net Assets
[Download Table]
6/30/02 12/31/01
Consumer Discretionary & Services 13.5 14.4
Financial Services 13.3 9.6
Materials & Processing 10.9 10.2
Producer Durables 6.5 8.1
Other Energy 5.8 4.7
19
INVESTMENT REVIEWS
--------------------------------------------------------------------------------
COLUMBIA BALANCED FUND
[GROWTH OF $10,000 OVER 10 YEARS
LINE GRAPH]
[Download Table]
LEHMAN AGGREGATE BOND
COLUMBIA BALANCED FUND S&P 500 INDEX INDEX
---------------------- ------------- ---------------------
06/30/92 10000 10000 10000
06/30/93 11615 11363 11179
06/30/94 11825 11523 11034
06/30/95 13743 14527 12417
06/30/96 15904 18306 13041
06/30/97 18868 24656 14103
06/30/98 22597 32095 15590
06/30/99 25823 39397 16081
06/30/00 28865 42253 16816
06/30/01 26282 35982 18704
06/30/02 23540 29509 20313
AVERAGE ANNUAL TOTAL RETURNS
As of June 30, 2002
[Download Table]
S&P LEHMAN
CBF 500 AGGREGATE
------- ------- ---------
1 Year -10.42% -17.99% 8.61%
5 Years 4.53% 3.66% 7.57%
10 Years 8.94% 11.43% 7.34%
Past performance is not predictive of future results. The S&P 500 Index is an
unmanaged index generally considered representative of the U.S. stock market.
The Lehman Aggregate Bond Index is an unmanaged index that represents average
market-weighted performance of U.S. Treasury and agency securities, investment-
grade corporate bonds, and mortgage-backed securities with maturities greater
than one year.
FIRST HALF PERFORMANCE
For the six months ended June 30, 2002, Columbia Balanced Fund returned -7.88%.
Gains in the fixed income portion of the Fund were wiped away by losses incurred
in a volatile stock market. For instance, the Lehman Aggregate Bond Index gained
3.79% for the period, while the S&P 500 Index lost -13.16%.
AN OVERVIEW OF THE MARKETS
The economy appeared to be on track for a modest recovery
as corporate profits and economic activity accelerated in
the first quarter. However, despite these positive
developments in fundamentals, the economic recovery was
overshadowed by concerns about the quality of reported
earnings and corporate governance. Larger cap companies
suffered more than smaller cap companies, as valuations
continued to compress for the former. As the list of
suspected culprits of accounting irregularities grew in
the second quarter, the market responded with one of its
worst quarters since World War II, with the S&P 500 Index
shedding -13.40%.
Although bonds generally performed well in the first half
of 2002, the market behaved quite differently in the
first and second quarters. In the first quarter, interest
rates rose in response to the market's expectations that
the Fed would react to signs of economic growth by
raising rates. In the second quarter, interest rates fell
as the anticipated recovery appeared to stall and
expectations for Fed action were pushed out. With
concerns of corporate scandals weighing on investors, not
to mention persistent terrorist threats, the market saw a
flight to quality as investors sought refuge from stock
market volatility.
PERFORMANCE IS MIXED
The technology, telecommunications and media sectors
struggled throughout much of the period and had an
overall negative impact on the Fund's equity performance.
Adelphia Communications was our worst holding in the
media area and was sold due to reports that the
management group had deceived investors and lost all
credibility. In addition, Tyco International, a diversified industrial holding,
had very weak performance, as it appeared that its management group had also
misled shareholders. We took early action in January to mitigate the effect of
Tyco's losses on the portfolio.
Despite a number of disappointments during the period, the Fund's equity
performance benefited from certain defensive holdings. Raytheon, a provider of
20
INVESTMENT REVIEWS
--------------------------------------------------------------------------------
electronic goods for the defense industry, outperformed in the first part of the
year due to rising defense budgets and an increasing ability to generate strong
cash flow. Also, Bank of America maintained its status as a stalwart holding and
continued to show strong earnings and dividend yield.
In the fixed income portion of the portfolio, the Fund benefited from
overweighting asset-backed and mortgage-backed securities,
including commercial mortgage-backed securities, all of
which outperformed Treasuries. However, performance was
hampered by an overweighting in investment-grade corporate
bonds, as well as by the portfolio's small weighting in
high yield issues. Corporate issues struggled due to the
same accounting issues that are plaguing the equity
markets.
OUR INVESTMENT STRATEGY
While the pace of the anticipated rebound can be debated,
we continue to believe that the economy is on track for a
modest recovery. In the Fund's equity portfolio, we are
seeking companies that are well positioned to benefit from
revitalized U.S. and global economies. Therefore, we have
been adding to companies and industries that can benefit
from a weaker dollar, such as multinational firms with
significant operations abroad. We are also maintaining a
lower weighted average market cap than the S&P 500 Index,
believing that smaller issues will outpace the largest
companies.
As we expect the volatility in corporate bonds to continue
for some time, we have reduced the Fund's exposure to these
issues in its fixed income portfolio. Over the long-term,
however, we believe that corporate bonds, including high
yield issues, will outperform other sectors of the bond
market. In the meantime, we continue to overweight
asset-backed securities and mortgage-backed securities, as
their yields are still high and more attractive relative to
Treasuries.
Guy W. Pope, Leonard A. Aplet and Jeffrey L. Rippey
On behalf of the Columbia Investment Team
TOP TEN HOLDINGS
% of Net Assets
[Download Table]
6/30/02 12/31/01
Citigroup, Inc. 2.2 2.7
Pfizer, Inc. 2.2 2.1
Wal-Mart Stores, Inc. 1.8 1.5
Microsoft Corp. 1.4 1.9
General Electric. Co. 1.4 2.2
Exxon Mobil Corp. 1.4 1.6
Bank of America Corp. 1.3 1.0
Pharmacia Corp. 1.3 0.8
American International Group, Inc. 1.3 1.1
American Express Co. 1.2 0.9
PORTFOLIO COMPOSITION
% of Net Assets
June 30, 2002
[PIE CHART]
[Download Table]
Stocks 58.3%
Bonds 40.8%
Cash 0.9%
DECEMBER 31, 2001
[PIE CHART]
[Download Table]
Stocks 56.6%
Bonds 39.3%
Cash 4.1%
21
INVESTMENT REVIEWS
--------------------------------------------------------------------------------
COLUMBIA SHORT TERM BOND FUND
[GROWTH OF $10,000 OVER 10 YEARS
LINE GRAPH]
[Download Table]
COLUMBIA SHORT TERM BOND MERRILL LYNCH 1-5 YEAR MERRILL LYNCH 1-3 YEAR
FUND GOV'T/CORP INDEX TREASURY INDEX
------------------------ ---------------------- ----------------------
6/30/92 10000.00 10000.00 10000.00
6/30/93 10737.00 10851.00 10658.00
6/30/94 10853.00 10951.00 10830.00
6/30/95 11571.00 11923.00 11667.00
6/30/96 12100.00 12556.00 12304.00
6/30/97 12814.00 13415.00 13111.00
6/30/98 13577.00 14425.00 14004.00
6/30/99 14152.00 15142.00 14715.00
6/30/00 14680.00 15834.00 15438.00
6/30/01 15971.00 17449.00 16830.00
6/30/02 17065.00 18782.00 17949.00
AVERAGE ANNUAL TOTAL RETURNS
As of December 31, 2001
[Download Table]
MERRILL MERRILL
1-5 1-3
CSTB GOV.T/CORP TREASURY
----- ---------- --------
1 Year 6.85% 7.62% 6.65%
5 Years 5.90% 6.96% 6.48%
10 Years 5.49% 6.51% 6.02%
Past performance is not predictive of future results. The Merrill Lynch 1-5 Year
Government/Corporate Index is an unmanaged index that includes all U.S.
government debt with at least $100 million face value outstanding, as well as
investment-grade rated corporate debt with at least $100 million face value
outstanding and a maturity of 1-5 years. The Merrill Lynch 1-3 Year Treasury
Index is an unmanaged index that measures the return of Treasury bills with
maturities of 1-3 years and is intended to provide a benchmark for the prior
investment objective and strategy of the Fund. On November 1, 2000, the Fund's
strategy was changed from a U.S. government bond fund to a short term bond fund.
Through October 31, 2003, the Advisor has contractually agreed to reimburse the
Fund to keep expenses at or below 0.75% of net assets. Absent this
reimbursement, total returns may have been lower.
FIRST HALF RESULTS
For the six months ended June 30, Columbia Short Term Bond Fund returned 2.69%.
In comparison, the Merrill Lynch 1-5 Year Government/Corporate Index returned
2.94% and the Merrill Lynch 1-3 Year Treasury Index returned 2.38%.
INVESTORS SEEK STABILITY OF BONDS
Although bonds generally performed well in the first six
months of the year, the market behaved quite differently
in the first and second quarters. In the first quarter,
interest rates rose in response to the market's
expectations that the Fed would react to signs of
economic growth by raising interest rates. This increase
in interest rates hurt performance as price decreases on
the securities in the portfolio offset much of the
interest income earned.
In the second quarter, investor confidence was
increasingly undermined as more corporate scandals and
accounting irregularities were revealed and as threats of
terrorism and unrest in the Middle East persisted. In
addition, the anticipated economic recovery appeared to
stall. As expectations for Fed action were pushed out,
sentiment in the bond market turned up and a flight to
quality ensued as investors turned to bonds (especially
Treasuries) in search of stability. During the quarter,
declining interest rates helped the Fund's performance as
price increases on securities added to the interest
income of the portfolio.
EXPECTATIONS FOR MODERATE GROWTH, INFLATION
After growing at a rate of 5.0% in the first quarter (as
measured by the gross domestic product), U.S. economic
expansion slowed in the second quarter to an estimated
1.1%. Housing and consumer spending have been areas of
economic strength thus far, but the negative wealth
effect resulting from the struggling equity market could
impact consumer behavior going forward.
Economic growth is expected to be moderate for the
balance of the year, and the financial markets will
monitor the Fed's reaction to the pace of an economic
recovery. The Fed adopted a "neutral" posture at its
March meeting and will likely await signs of a
sustainable recovery before embarking on a "tightening"
policy (raising interest rates). The timing and amount of
any rate revisions should have a great impact on both the
bond and the stock markets.
22
INVESTMENT REVIEWS
--------------------------------------------------------------------------------
In addition to economic growth, the financial markets and the Fed are always
monitoring the level of inflation. Inflation has declined over the past year as
measured by the Consumer Price Index (CPI), which has risen only 1.1% for the 12
months ended June 30. The CPI may have reached a bottom and could turn higher as
the economy improves and as energy prices increase. However, inflation is
not expected to be a significant problem over the next 12
months.
CONTRIBUTORS TO PORTFOLIO PERFORMANCE
The Fund's performance benefited from an overweighting in
short-term asset-backed securities and mortgage-backed
securities, including commercial mortgage-backed
securities, all of which outperformed Treasuries. However,
performance was hampered by an overweighting in
investment-grade corporate bonds. In general, corporate
issues struggled due to the same accounting issues that
have plagued the equity markets.
PORTFOLIO INVESTMENT STRATEGY
We expect interest rates to remain in a broad trading range
for the remainder of 2002. As we expect the volatility in
corporate bonds to continue for some time, we have reduced
the Fund's exposure to these issues. However, over the
long-term, we believe that corporate bonds will outperform
other sectors of the bond market. In the meantime, we
continue to overweight AAA-rated asset-backed securities
and mortgage-backed securities in the portfolio, as their
yields are still high and more attractive relative to
Treasuries. In addition, the Fund will maintain a short- to
intermediate-term maturity and an average duration of less
than three years.
Leonard A. Aplet and Jeffrey L. Rippey
Portfolio Managers
PORTFOLIO COMPOSITION
% of Net Assets
[Download Table]
6/30/02 12/31/01
Corporate Bonds 32.3 38.9
Collateralized Mortgage Obligations 22.2 12.2
Asset-Backed Securities 14.1 18.9
Mortgage Pass-Throughs 13.7 15.5
Treasury/Agency 10.7 6.6
Cash 7.0 7.9
PORTFOLIO QUALITY
% of Portfolio Holdings
June 30, 2002 [PIE CHART]
[Download Table]
Aaa 34.9%
Treasury/Agency 28.7%
A 18.9%
Baa 11.5%
Aa 6.0%
December 31, 2001
[PIE CHART]
[Download Table]
Aaa 33.3%
Treasury/Agency 24.6%
A 20.9%
Baa 14.5%
Aa 6.7%
As rated by Moody's Investors Service, Inc.
23
INVESTMENT REVIEWS
--------------------------------------------------------------------------------
COLUMBIA FIXED INCOME SECURITIES FUND
[GROWTH OF $10,000 OVER 10 YEARS
LINE GRAPH]
[Download Table]
COLUMBIA FIXED INCOME SECURITIES
FUND LEHMAN AGGREGATE BOND INDEX
-------------------------------- ---------------------------
6/30/92 10000 10000
6/30/93 11273 11179
6/30/94 11082 11034
6/30/95 12460 12417
6/30/96 13074 13041
6/30/97 14163 14103
6/30/98 15591 15590
6/30/99 15850 16081
6/30/00 16459 16816
6/30/01 18327 18704
6/30/02 19714 20313
AVERAGE ANNUAL TOTAL RETURNS
As of June 30, 2002
[Download Table]
LEHMAN
CFIS AGGREGATE
----- ---------
1 Year 7.57% 8.61%
5 Years 6.84% 7.57%
10 Years 7.02% 7.34%
Past performance is not predictive of future results. The Lehman Aggregate Bond
Index is an unmanaged index that represents average market-weighted performance
of U.S. Treasury and agency securities, investment-grade corporate bonds, and
mortgage-backed securities with maturities greater than one year.
FUND PERFORMANCE
Overall, the first half of 2002 was a favorable period for fixed income
instruments. For the six months ended June 30, Columbia Fixed Income Securities
Fund returned 3.00%. In comparison, the Lehman Aggregate Bond Index returned
3.79%.
A FLIGHT TO QUALITY
Although bonds generally performed well in the first six
months of the year, the market behaved quite differently
in the first and second quarters. In the first quarter,
interest rates rose in response to the market's
expectations that the Fed would react to signs of
economic growth by raising interest rates. Yields
increased slightly, but only enough to offset the decline
in bond prices. For the quarter, the Index had a
relatively flat return of 0.09%.
In the second quarter, the market saw a flight to quality
as investors moved to bonds, especially Treasuries, due
to a number of concerns. Along with a market troubled by
corporate scandal, investor confidence was undermined by
persistent threats of terrorism and unrest in the Middle
East. In addition, as the anticipated economic recovery
appeared to stall, expectations for Fed action were
pushed out and sentiment in the bond market turned up. As
a result, declining interest rates helped the Fund's
performance as price increases on securities added to
interest income.
MONITORING GROWTH, INFLATION
Though the U.S. economy grew at a rate of 5.0% in the
first quarter (as measured by the gross domestic
product), the rate of expansion slowed in the second
quarter to an estimated 1.1%. Housing and consumer
spending have been areas of economic strength thus far,
but the negative wealth effect resulting from the
struggling equity market could impact consumer behavior.
Although economic growth is expected to be moderate for
the balance of the year, the financial markets remain
concerned about how the Fed could react to the pace of an
economic recovery. The Fed is currently maintaining a
"neutral" posture and appears to be awaiting signs of a
sustainable recovery before raising interest rates. The
timing and amount of any rate revisions should have a
great impact on both the bond and the stock markets.
24
INVESTMENT REVIEWS
--------------------------------------------------------------------------------
In addition to economic growth, the level of inflation is always a concern in
the financial markets and with the Fed. Inflation has declined over the past
year as measured by the Consumer Price Index (CPI), which has risen only 1.1%
for the 12 months ended June 30. The CPI may have reached a bottom and could
turn higher as the economy improves and as energy prices increase. However,
inflation is not expected to be a significant problem over the next 12 months.
MORTGAGE-BACKED SECURITIES OUTPERFORM
The Fund's performance benefited from an overweighting in
asset-backed securities and mortgage-backed securities,
including commercial mortgage-backed securities, all of
which outperformed Treasuries. However, performance was
hampered by an overweighting in investment-grade corporate
bonds, as well as by the portfolio's small weighting in
high yield issues. Corporate issues all around struggled
due to the same accounting issues that have plagued the
equity markets.
OUR STRATEGY GOING FORWARD
We expect interest rates to remain in a broad trading range
for the remainder of 2002. As we expect the volatility in
corporate bonds to continue for some time, we have reduced
the Fund's exposure to these issues. However, over the
long-term, we believe that corporate bonds, including high
yield issues, will outperform other sectors of the bond
market. In the meantime, we continue to overweight
asset-backed securities and mortgage-backed securities in
the portfolio, as their yields are still high and more
attractive relative to Treasuries.
Leonard A. Aplet and Jeffrey L. Rippey
Portfolio Managers
PORTFOLIO COMPOSITION
% of Net Assets
[Download Table]
6/30/02 12/31/01
Corporate Bonds 38.8 42.2
Mortgage Pass-Throughs 21.3 20.5
Collateralized Mortgage Obligations 17.3 13.6
Treasury/Agency Obligations 10.7 10.9
Asset-Backed Securities 6.9 7.9
Cash 5.0 4.9
PORTFOLIO QUALITY
% of Portfolio Holdings
June 30, 2002
[PIE CHART]
[Download Table]
Treasury/Agency 39.3%
A 16.8%
Aaa 19.6%
Baa 12.8%
Aa 5.0%
Ba 4.0%
B 2.5%
December 31, 2001
[PIE CHART]
[Download Table]
Treasury/Agency 40.0%
Aaa 16.6%
A 17.3%
Baa 13.1%
Aa 6.0%
Ba 4.5%
B 2.5%
As rated by Moody's Investors Service, Inc.
25
INVESTMENT REVIEWS
--------------------------------------------------------------------------------
COLUMBIA NATIONAL MUNICIPAL BOND FUND
GROWTH OF $10,000 SINCE
INCEPTION [LINE GRAPH]
[Download Table]
COLUMBIA NATIONAL LIPPER GENERAL MUNICIPAL LEHMAN BROTHERS MUNICIPAL
MUNICIPAL BOND FUND DEBT FUNDS INDEX BOND INDEX*
------------------- ------------------------ -------------------------
2/24/99 10000.00 10000.00 10000.00
12/31/99 9607.00 9543.00 9721.00
12/31/00 10651.00 10602.00 10856.00
12/31/01 11094.00 11042.00 11413.00
6/30/02 11647.00 11516.00 11942.00
AVERAGE ANNUAL TOTAL RETURNS
As of June 30, 2002
[Download Table]
LEHMAN LIPPER
CNMF MUNI GENERAL
----- ------ -------
1 Year 6.70% 6.92% 5.84%
Since Inception (2/24/99) 4.73% 5.53%* 4.30%
Past performance is not predictive of future results. The Lehman Brothers
Municipal Bond Index is an unmanaged index considered representative of the
broad market for investment-grade, tax-exempt bonds with a maturity of at least
one year, issued on or after January 1, 1991, with a deal size greater than $50
million and a maturity size of at least $5 million, and having a fixed rate
coupon. The Lipper General Municipal Debt Funds Index represents average
performance of the 30 largest general municipal debt funds tracked by Lipper
Analytical Services, Inc. Performance includes a contractual reimbursement of
Fund expenses by the Advisor. Absent these reimbursements, total returns may
have been lower.
* Performance since 3/1/99
MUNIS MAKE GAINS IN FIRST HALF
Municipal bonds performed well in the first half of 2002, and Columbia National
Municipal Bond Fund rose 4.97% for the six months ended June 30. The Fund
outperformed its benchmark indices, as the Lehman Brothers Municipal Bond Index
rose 4.64% and the Lipper General Municipal Debt Funds Index gained 4.30%.
BOND PRICES REBOUND IN SECOND QUARTER
As the period commenced, positive economic news suggested
that U.S. and global economies were stabilizing and on
track for recovery. In addition, it appeared as though
the Fed's easing cycle had ended. The Fed confirmed this
speculation in March by adopting a neutral bias, setting
the stage for possible short-term interest rate hikes
later this year. In anticipation of this action, bond
prices fell and the market drove interest rates up.
In the latter half of the period, bond prices
appreciated: expectations for Fed tightening were pushed
out as the economic recovery appeared to falter and stock
prices plummeted. Investor confidence had been shaken by
corporate fraud, overstated earnings, downward revisions
to forecasted profits and occasional terrorist warnings.
The resulting market volatility prompted many equity
investors to move their investments to bonds in search of
some stability, and this increase in demand helped propel
bond prices higher.
The Fed is monitoring the strength and progress of the
economic recovery as it considers revising the target
federal funds rate. We continue to anticipate a modest
recovery and expect that interest rates will eventually
rise once the stock market stabilizes.
MUNICIPAL BONDS OUTPERFORM
Municipal bonds outperformed in the first half of 2002
due primarily to a relatively low supply of new issuance
nationwide. Late in 2001, municipalities had rushed to
refinance older issues in order to take advantage of
historically low interest rates. This rush to refinance
was followed by two traditionally slow months of new
issuance, resulting in a dwindling supply of new issues
in the first quarter. In the second quarter, prices on
municipals received another boost due to strong demand
and moderate supply
26
INVESTMENT REVIEWS
--------------------------------------------------------------------------------
nationally, including demand based on large coupon payments (due in June and
July) that are typically reinvested in municipal bonds.
Although municipalities are facing declining tax revenues, interest rates are
still low and issuers continue to pursue opportunities to refund outstanding
debt in order to lower their interest payments. Nationally, supply has been
stronger as these refunding issues have come to market.
Nevertheless, declining tax revenues are likely to cause
some mild deterioration in the credit worthiness of
municipalities, depending on how legislators respond to
budget issues. Like corporate issuers, municipal entities
should be able to look forward to improving finances in the
future as the economy recovers and income tax receipts
rise, bolstering state coffers next year.
YIELDS REMAIN ATTRACTIVE
Yields on municipal bonds, particularly intermediate and
longer-term issues, continue to be attractive on a
tax-adjusted basis for investors in the highest tax
brackets. With the recent drop in short-term and
intermediate rates, extending the maturity of the holdings
from very short-term issues out to intermediate issues
continues to be a way to improve long-term expected
returns. We are maintaining an intermediate average
maturity on the Fund, leaving the portfolio with a 7- to
10-year average life. The Fund continues to focus on high
quality issues diversified across states and sectors
nationwide.
Greta R. Clapp
Portfolio Manager
Top Ten States
% of Net Assets
[Download Table]
6/30/02 12/31/01
Oregon 18.4 22.0
Texas 13.7 14.8
Washington 11.2 13.9
Illinois 10.3 5.1
Michigan 5.4 4.7
Indiana 4.5 0.7
Idaho 4.3 1.0
Tennessee 4.2 6.0
Alaska 3.5 3.5
Ohio 2.9 0.9
PORTFOLIO QUALITY
% of Portfolio Holdings
June 30, 2002
[PIE CHART]
[Download Table]
Aaa 50.7%
Aa 18.3%
Not Rated 16.3%
A 9.8%
Baa 4.9%
December 31, 2001
[PIE CHART]
[Download Table]
Aaa 48.1%
Aa 17.6%
Not Rated 16.6%
A 10.9%
Baa 6.8%
As rated by Moody's Investors Service, Inc.
27
INVESTMENT REVIEWS
--------------------------------------------------------------------------------
COLUMBIA OREGON MUNICIPAL BOND FUND
GROWTH OF $10,000 OVER 10 YEARS
[LINE GRAPH]
[Enlarge/Download Table]
COLUMBIA OREGON MUNICIPAL LEHMAN GENERAL OBLIGATION LIPPER OREGON MUNICIPAL
BOND FUND BOND INDEX DEBT FUNDS
------------------------- ------------------------- -----------------------
06/30/92 10000 10000 10000
06/30/93 11087 11167 11122
06/30/94 11025 11233 11042
06/30/95 11818 12156 11892
06/30/96 12479 12940 12582
06/30/97 13367 14012 13444
06/30/98 14392 15161 14529
06/30/99 14658 15602 14819
06/30/00 15006 16164 15116
06/30/01 16437 17709 16496
06/30/02 17510 18945 17535
AVERAGE ANNUAL TOTAL RETURNS
As of June 30, 2002
[Download Table]
LEHMAN LIPPER
CMBF G.O. OREGON
----- ------ ------
1 Year 6.54% 6.97% 6.09%
5 Years 5.55% 6.22% 5.22%
10 Years 5.76% 6.60% 5.77%
Past performance is not predictive of future results. The Lehman General
Obligation Bond Index is an unmanaged index that represents average market-
weighted performance of general obligation securities that have been issued in
the last five years with maturities greater than one year. The Lipper Oregon
Municipal Debt Funds average measures performance of all Oregon municipal bond
funds tracked by Lipper Analytical Services, Inc.
PORTFOLIO PERFORMANCE
Columbia Oregon Municipal Bond Fund generated a return of 4.83% for the six
months ended June 30, 2002. This return outpaced the Lipper Oregon Municipal
Debt Funds Index, which had a return of 4.24%, and the Lehman General Obligation
Bond Index, which had a return of 4.72%.
INVESTORS TURN TO BONDS
As the period commenced, positive economic news suggested
that U.S. and global economies were stabilizing and on
track for recovery. In addition, it appeared as though
the Fed's easing cycle had ended. The Fed confirmed this
speculation in March by adopting a neutral bias, setting
the stage for possible short-term interest rate hikes
later this year. In anticipation of this action, bond
prices fell and the market drove interest rates up.
In the latter half of the period, bond prices
appreciated: expectations for Fed tightening were pushed
out as the economic recovery appeared to falter and stock
prices plummeted. Investor confidence had been shaken by
corporate fraud, overstated earnings, downward revisions
to forecasted profits and occasional terrorist warnings.
The resulting market volatility prompted many equity
investors to move their investments to bonds in search of
some stability, and this increase in demand helped propel
bond prices higher.
The Fed continues to monitor the strength and progress of
the economy as it considers the magnitude and timing of
any interest rate revisions. We continue to anticipate a
modest recovery late this year and expect that interest
rates will rise gradually once the stock market
stabilizes.
LOW SUPPLY IN OREGON
Municipal bonds performed well over the first half of the
year for several reasons, but a lower supply of new
issuance was the key factor. Late in 2001, municipalities
had rushed to refinance older issues to take advantage of
extremely low interest rates. In the first quarter of
2002, the supply of new issues diminished as many
refinancings had already been accomplished, and January and February tend to be
slow periods for new issuance. Later in the period, bond prices received a boost
as Oregon issuers experienced heavy demand based on large coupon payments due in
June and July (the coupon payments are typically reinvested in municipal bonds).
28
INVESTMENT REVIEWS
--------------------------------------------------------------------------------
Although municipalities are facing declining tax revenues as the economic
recovery falters, interest rates are still low and issuers continue to refund
outstanding debt in order to lower their interest payments. While supply has
been stronger nationally as these refunding issues have come to market, supply
in Oregon remains very light. Nevertheless, declining tax revenues are likely to
cause some mild deterioration in the creditworthiness of
municipalities in Oregon, depending on how legislators
respond to budget issues. Like corporate issuers, municipal
entities should be able to look forward to improving
finances in the future as the economy recovers and income
tax receipts gradually rise, bolstering state coffers next
year.
ATTRACTIVE YIELDS ON A TAX-ADJUSTED BASIS
Yields on municipal bonds, particularly intermediate and
longer-term issues, continue to be attractive on a
tax-adjusted basis for investors in the highest tax
brackets. With the recent drop in short-term and
intermediate interest rates, our strategy has been to
extend the maturity of holdings from very short-term issues
out to intermediate issues. This practice helps to improve
long-term expected returns for the portfolio. Therefore, we
are maintaining an intermediate average maturity for the
Fund, leaving the portfolio with a 7- to 10-year average
life. The Fund continues to focus on high quality issues
diversified across counties and sectors within Oregon.
Greta R. Clapp
Portfolio Manager
PORTFOLIO COMPOSITION
% of Net Assets
[Download Table]
6/30/02 12/31/01
Revenue 37.7 34.3
Insured Revenue 18.8 20.7
General Obligation 16.3 15.4
Insured General Obligation 15.3 14.6
State General Obligation 5.3 4.6
Other Bonds 3.1 2.9
U.S. Territories 0.6 0.6
Pre-Refunded Bonds 0.1 2.7
Cash 2.8 4.2
PORTFOLIO QUALITY
% of Portfolio Holdings
June 30, 2002
[PIE CHART]
[Download Table]
Aaa 33.8%
Aa 40.2%
A 8.7%
Baa 4.5%
Not Rated 12.8%
December 31, 2001
[PIE CHART]
[Download Table]
Aaa 36.8%
Aa 38.5%
A 8.4%
Baa 4.5%
Not Rated 11.8%
As rated by Moody's Investors Service, Inc.
29
INVESTMENT REVIEWS
--------------------------------------------------------------------------------
COLUMBIA HIGH YIELD FUND
GROWTH OF $10,000 SINCE
INCEPTION [LINE GRAPH]
[Enlarge/Download Table]
MERRILL LYNCH U.S.
COLUMBIA HIGH YIELD MERRILL LYNCH HIGH YIELD, CASH PAY
FUND SALOMON BB INDEX INTERMEDIATE BB INDEX INDEX
------------------- ---------------- --------------------- --------------------
10/1/93 10000 10000 10000 10000
12/31/93 10112 10185 10204 10347
12/31/94 10019 10048 10190 10226
12/31/95 11935 12321 12130 12262
12/31/96 13060 13429 13127 13618
12/31/97 14719 15142 14600 15364
12/31/98 15640 16361 15524 15926
12/31/99 16012 16728 15910 16176
12/31/00 16750 17223 16186 15563
12/31/01 17861 19545 17803 16528
6/30/02 17560 18473 17021 15820
AVERAGE ANNUAL TOTAL RETURNS
As of June 30, 2002
[Download Table]
SALOMON MERRILL
CHYF BB HIGH MERRILL
----- ------- YIELD BB
------- -------
1 Year 1.55% -2.25% -3.08% -2.69%
5 Years 4.91% 5.46% 1.88% 4.29%
Inception (10/1/93) 6.61% 7.22% 5.35% 6.23%
Past performance is not predictive of future results. The Salomon BB Index is an
unmanaged index that measures the total return of bonds with a maturity of at
least one year and includes bonds rated BB by Standard & Poor's or bonds rated
Ba by Moody's Investors Service. The Merrill Lynch U.S. High Yield, Cash Pay
Index is an unmanaged index of non-investment grade corporate bonds. The Advisor
intends to replace the Salomon BB Index with the Merrill Lynch U.S. High Yield,
Cash Pay Index, as the Fund's broad index, and it is more representative of a
broad based index. The Merrill Lynch Intermediate BB Index is a market weighted
index, consisting of BB cash pay bonds, which are U.S. dollar denominated bonds
issued in the U.S. domestic market with maturities between 1 and 10 years.
WEAK STOCK MARKET AFFECTS HIGH YIELD
For the first six months of 2002, Columbia High Yield Fund posted a return of
-1.67%. This compared to a return of -4.31% for the Merrill Lynch U.S. High
Yield, Cash Pay Index. Weak overall equity market performance, combined with
continued pressure on bonds issued in the telecommunications sector, contributed
to negative returns.
TELECOM ISSUES MAKE A NEGATIVE IMPACT
In the first quarter of this year, the high yield market
continued its strong rally from late 2001, as the Merrill
Lynch U.S. High Yield, Cash Pay Index returned nearly 2%
for the period. The positive returns were achieved in an
environment of rising Treasury rates and a virtually flat
equity market. The high yield market saw continued
improvement in April and only experienced a slightly
negative decline of 0.54% in May, as measured by the
Index. In June, however, the market took a significant
downturn, as the Index dropped a record 7.11% for the
month.
In June, a number of events contributed to the high yield
market's decline. At the forefront were the ongoing
corporate scandals in accounting irregularities that have
hurt investor confidence. In addition, the declining
value of telecommunication sector bonds caused the Index
to trade down significantly. The telecommunications
industry alone fell over 34% in June, accounting for over
half of the drop in value of the Merrill Lynch U.S. High
Yield, Cash Pay Index in the month. Within the telecom
industry, bonds issued by WorldCom (not a portfolio
holding) were the primary contributors to this poor
performance.
SHIFTS IN INDUSTRY EMPHASIS
During the first half of the year, we made industry
changes on the buy side that centered around two themes.
First, we added to holdings in more defensive industries.
For example, we increased our weighting in the food and
beverage industry by 3% of net assets and in the consumer
product industry by 1%. Second, we increased our
weightings in industries that we believe will continue to
rebound from last fall. For instance, our weightings in
hotels, homebuilders and gaming were all increased by
more than 2% of net assets.
30
INVESTMENT REVIEWS
--------------------------------------------------------------------------------
On the sell side, we took our telecommunications sector weighting to zero in the
period. We also decreased our weighting in the electric utilities industry by
approximately 3.5% of net assets, mostly from the sale of AES bonds. Finally, we
sold bonds issued by Adelphia during the period, which lowered our cable
weighting by approximately 3%.
CONTRIBUTORS TO FUND PERFORMANCE
The Fund's top three performers for the first half of 2002
were Pennzoil-Quaker State, Six Flags and Winn-Dixie
Stores. Pennzoil agreed to be purchased by Shell Oil
Company, an investment-grade credit. Six Flags has improved
operations, slowed capital expenditures and focused on
improving cash flow. Winn-Dixie bonds performed well as the
company paid down debt and improved its same-store sales
growth and profitability.
One industry that hurt the portfolio in the period was the
cable industry. When the sixth largest cable operator,
Adelphia, revealed accounting fraud, the entire industry
traded down. Investors chose to focus on companies with
positive free cash flow and have avoided companies that are
highly leveraged or need additional funding, like cable
companies. Due to this preference, bonds in the portfolio
issued by Charter Communications underperformed in the
period. Despite the issues associated with Adelphia, we
believe the cable companies in the portfolio have potential
to perform well over the next 12 months.
AN OUTLOOK FOR HIGH YIELD
Investor confidence has been hurt by the ongoing corporate
scandals. Accounting issues and the quality of earnings
have taken center stage in investors' minds. If the number
of companies involved in questionable reporting practices
does not escalate, high yield spreads/prices should begin
to stabilize. We believe that the economy continues on the
road to recovery, which should ultimately lead to improved
earnings and a better environment for high yield bonds over
the next year.
Jeffrey L. Rippey and Kurt M. Havnaer
Portfolio Managers
TOP FIVE SECTORS
% of Net Assets
[Download Table]
6/30/02 12/31/01
Consumer Cyclical 31.4 25.6
Consumer Staples 24.7 22.9
Business & Consumer Services 14.3 16.9
Basic Industries & Mfg. 8.2 7.0
Energy 5.8 4.7
PORTFOLIO QUALITY
% of Portfolio Holdings
June 30, 2002
[PIE CHART]
[Download Table]
B 38.3%
Ba 58.1%
Baa 2.5%
A 1.1%
December 31, 2001
[PIE CHART]
[Download Table]
B 49.5%
Ba 48.6%
Baa 1.9%
As rated by Moody's Investors Service, Inc.
31
INVESTMENT REVIEWS
--------------------------------------------------------------------------------
COLUMBIA DAILY INCOME COMPANY
GROWTH OF $10,000 OVER 10 YEARS
[LINE GRAPH]
[Download Table]
COLUMBIA DAILY INCOME COMPANY CONSUMER PRICE INDEX (INFLATION)
----------------------------- --------------------------------
06/30/92 10000 10000
06/30/93 10265 10300
06/30/94 10544 10558
06/30/95 11074 10874
06/30/96 11645 11179
06/30/97 12226 11436
06/30/98 12859 11630
06/30/99 13471 11863
06/30/00 14188 12302
06/30/01 14977 12695
06/30/02 15266 12835
AVERAGE ANNUAL TOTAL RETURNS
As of June 30, 2002
[Download Table]
CDIC CPI
----- -----
1 Year 1.95% 1.10%
5 Years 4.54% 2.34%
10 Years 4.32% 2.53%
Past performance is not predictive of future results. An investment in the Fund
is not insured or guaranteed by the Federal Deposit Insurance Corporation or any
other governmental agency. Although the Fund seeks to preserve the value of your
investment at $1 per share, it is possible to lose money by investing in the
Fund.
PORTFOLIO HIGHLIGHTS
[Download Table]
6/30/02 12/31/01
Current Yield 1.19% 1.50%
Compound Yield 1.20% 1.51%
Based on the 7-day period
ending on each date shown
Weighted Average Maturity 30 days 33 days
RESULTS FOR THE FIRST HALF
The Fund posted a return of 0.62% for the six months ended June 30, 2002. The
yield on the Fund lagged behind the general level of inflation, as the Consumer
Price Index (CPI) rose 1.40% for the period. However, for the 12 months ended
June 30, the Fund returned 1.95%, while the CPI rose 1.10%. The CPI may have
reached a bottom on a year-over-year basis and could tick
up as the economy improves and energy prices rise.
Nonetheless, we do not expect inflation to be a
significant problem over the next 12 months.
FED WATCHING FOR ECONOMIC RECOVERY
The U.S. economy improved rapidly in the first quarter of
2002, growing at an annual rate of 5.0%, as measured by
the gross domestic product (GDP). However the rate of
expansion slowed in the second quarter to an estimated
1.1%, while the falling equity market began to erode
consumer confidence. Housing and consumer spending have
been areas of economic strength, but the negative wealth
effect resulting from the struggling equity market could
affect consumer behavior.
Currently, a major concern in the financial markets is
how the Fed will react to the pace of economic recovery.
As of June 30, the Fed is maintaining a "neutral" posture
and does not appear anxious to change the level of
short-term rates very much or very soon. The amount and
the timing of any rate revisions are likely to have a
great impact on the stock and bond markets.
LOWER YIELD DUE TO RATE CUTS
The Fund's yield fell last year along with short-term
interest rates during the Fed's easing policy. The
current 7-day yield on the Fund is 1.19%. If short-term
rates rise, the yield on the Fund should improve.
As always, the Fund invests in high quality, short-term
debt instruments and maintains an average maturity of 30
to 50 days, providing a very liquid, low risk investment.
Leonard A. Aplet
Portfolio Manager
32
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
COLUMBIA COMMON STOCK FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
[Enlarge/Download Table]
Six Months Ended
June 30, 2002
(Unaudited) 2001 2000 1999 1998 1997
------ ------ ------ ------ ------
---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $19.97 $24.34 $28.90 $24.40 $22.02 $19.26
---------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)............. 0.04 0.07 (0.01) 0.03 0.09 0.29
Net realized and unrealized gains
(losses) on investments................ (3.02) (4.35) (1.54) 6.25 5.68 4.58
---------------------------------------------------------------------------------------------------------------------------------
Total from investment operations....... (2.98) (4.28) (1.55) 6.28 5.77 4.87
---------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income..... -- (0.07) -- (0.03) (0.13) (0.27)
Distributions from capital gains......... -- (0.02) (3.01) (1.75) (3.26) (1.84)
---------------------------------------------------------------------------------------------------------------------------------
Total distributions.................... -- (0.09) (3.01) (1.78) (3.39) (2.11)
---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $16.99 $19.97 $24.34 $28.90 $24.40 $22.02
---------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN.............................. -14.92%(1) -17.60% -5.73% 25.76% 26.28% 25.37%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in
thousands)............................... $535,725 $681,397 $895,134 $959,910 $797,147 $783,906
Ratio of expenses to average net assets... 0.83%(2) 0.80% 0.75% 0.77% 0.80% 0.77%
Ratio of net investment income (loss) to
average net assets....................... 0.37%(2) 0.32% (0.05)% 0.09% 0.56% 1.37%
Portfolio turnover rate................... 59%(1) 114% 104% 97% 141% 90%
(1) Not annualized
(2) Annualized
COLUMBIA GROWTH FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
[Enlarge/Download Table]
Six Months Ended
June 30, 2002
(Unaudited) 2001 2000 1999 1998 1997
------ ------ ------ ------ ------
---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $31.35 $40.07 $48.91 $42.51 $34.34 $30.74
---------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)............. (0.01) (0.02) (0.08) (0.03) 0.03 0.19
Net realized and unrealized gains
(losses) on investments................ (7.24) (8.55) (3.49) 11.09 10.39 7.90
---------------------------------------------------------------------------------------------------------------------------------
Total from investment operations....... (7.25) (8.57) (3.57) 11.06 10.42 8.09
---------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income..... -- -- -- (0.00)* (0.08) (0.17)
Distributions from capital gains......... -- (0.15) (5.27) (4.66) (2.17) (4.32)
---------------------------------------------------------------------------------------------------------------------------------
Total distributions.................... -- (0.15) (5.27) (4.66) (2.25) (4.49)
---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD............ $24.10 $31.35 $40.07 $48.91 $42.51 $34.34
---------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN.............................. -23.13%(1) -21.40% -7.94% 26.02% 30.34% 26.32%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in
thousands)............................... $941,731 $1,325,844 $1,919,227 $2,160,739 $1,753,024 $1,324,918
Ratio of expenses to average net assets... 0.79%(2) 0.72% 0.65% 0.65% 0.68% 0.71%
Ratio of net investment income (loss) to
average net assets....................... (0.10)%(2) (0.07)% (0.18)% (0.07)% 0.21% 0.55%
Portfolio turnover rate................... 89%(1) 122% 114% 118% 105% 96%
* Amount represents less than $0.01 per share.
(1) Not annualized
(2) Annualized
See Accompanying Notes to Financial Statements
33
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
COLUMBIA INTERNATIONAL STOCK FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
[Enlarge/Download Table]
Six Months Ended
June 30, 2002
(UNAUDITED) 2001 2000 1999 1998 1997
------ ------ ------ ------ ------
---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $12.03 $14.77 $22.81 $15.45 $13.70 $13.86
---------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)............. 0.01 0.01 (0.04) (0.05) (0.00)* 0.03
Net realized and unrealized gains
(losses) on investments and foreign
currency transactions.................. (0.07) (2.74) (5.17) 9.00 1.76 1.56
---------------------------------------------------------------------------------------------------------------------------------
Total from investment operations....... (0.06) (2.73) (5.21) 8.95 1.76 1.59
---------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income..... -- (0.01) -- -- -- --
Distributions from capital gains......... -- -- (2.83) (1.59) (0.01) (1.75)
---------------------------------------------------------------------------------------------------------------------------------
Total distributions.................... -- (0.01) (2.83) (1.59) (0.01) (1.75)
---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $11.97 $12.03 $14.77 $22.81 $15.45 $13.70
---------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN.............................. -0.50%(1) -18.47% -22.64% 57.93% 12.83% 11.47%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in
thousands)............................... $141,621 $135,626 $175,316 $239,223 $134,193 $146,281
Ratio of expenses to average net assets... 1.65%(2) 1.56% 1.42% 1.48% 1.56% 1.62%
Ratio of net investment income (loss) to
average net assets....................... 0.33%(2) 0.06% (0.19)% (0.35)% (0.02)% 0.19%
Portfolio turnover rate................... 40%(1) 130% 112% 94% 74% 122%
* Amount represents less than $0.01 per share.
(1) Not annualized
(2) Annualized
COLUMBIA SPECIAL FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
[Enlarge/Download Table]
Six Months Ended
June 30, 2002
(UNAUDITED) 2001 2000 1999 1998 1997
------ ------ ------ ------ ------
---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $19.60 $25.99 $29.93 $23.62 $20.26 $19.85
---------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)............. (0.08) (0.11) (0.10) (0.16) (0.03) 0.01
Net realized and unrealized gains
(losses) on investments................ (2.42) (5.35) 4.45 8.74 3.40 2.50
---------------------------------------------------------------------------------------------------------------------------------
Total from investment operations....... (2.50) (5.46) 4.35 8.58 3.37 2.51
---------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income..... -- -- -- -- (0.01) --
Distributions from capital gains......... -- (0.93) (8.29) (2.27) (0.00)* (2.10)
---------------------------------------------------------------------------------------------------------------------------------
Total distributions.................... -- (0.93) (8.29) (2.27) (0.01) (2.10)
---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $17.10 $19.60 $25.99 $29.93 $23.62 $20.26
---------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN.............................. -12.76%(1) -20.98% 13.84% 36.33% 16.64% 12.64%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in
thousands)............................... $673,612 $786,071 $1,095,525 $918,322 $969,359 $1,249,718
Ratio of expenses to average net assets... 1.14%(2) 1.08% 0.99% 1.09% 1.03% 0.98%
Ratio of net investment income (loss) to
average net assets....................... (0.85)%(2) (0.49)% (0.38)% (0.64)% (0.09)% 0.04%
Portfolio turnover rate................... 62%(1) 186% 169% 135% 135% 166%
* Amount represents less than $0.01 per share.
(1) Not annualized
(2) Annualized
See Accompanying Notes to Financial Statements
34
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
COLUMBIA SMALL CAP FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
[Enlarge/Download Table]
Six Months Ended
June 30, 2002
(Unaudited) 2001 2000 1999 1998 1997
------ ------ ------ ------ ------
---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $22.20 $25.87 $27.26 $17.43 $16.65 $12.99
---------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss...................... (0.09) (0.13) (0.10) (0.14) (0.09) (0.08)
Net realized and unrealized gains
(losses) on investments................ (3.06) (3.54) 1.75 10.45 0.87 4.51
---------------------------------------------------------------------------------------------------------------------------------
Total from investment operations....... (3.15) (3.67) 1.65 10.31 0.78 4.43
---------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Distributions from capital gains......... -- -- (3.04) (0.48) (0.00)* (0.77)
---------------------------------------------------------------------------------------------------------------------------------
Total distributions.................... -- -- (3.04) (0.48) (0.00) (0.77)
---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $19.05 $22.20 $25.87 $27.26 $17.43 $16.65
---------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN.............................. -14.19%(1) -14.19% 5.85% 59.15% 4.69% 34.10%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in
thousands)............................... $637,653 $617,966 $518,970 $290,374 $160,472 $96,431
Ratio of expenses to average net assets... 1.21%(2) 1.23% 1.22% 1.30% 1.34% 1.46%
Ratio of net investment loss to average
net assets............................... (0.90)%(2) (0.71)% (0.44)% (0.84)% (0.68)% (0.81)%
Portfolio turnover rate................... 58%(1) 129% 145% 188% 158% 172%
* Amount represents less than $0.01 per share.
(1) Not annualized
(2) Annualized
COLUMBIA REAL ESTATE EQUITY FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
[Enlarge/Download Table]
Six Months Ended
June 30, 2002
(Unaudited) 2001 2000 1999 1998 1997
------ ------ ------ ------ ------
---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $18.04 $17.89 $14.57 $15.76 $18.80 $16.16
---------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income.................... 0.32 0.79 0.81 0.82 0.75 0.79
Net realized and unrealized gains
(losses) on investments................ 1.65 0.15 3.32 (1.19) (3.04) 3.15
---------------------------------------------------------------------------------------------------------------------------------
Total from investment operations....... 1.97 0.94 4.13 (0.37) (2.29) 3.94
---------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income..... (0.33) (0.72) (0.75) (0.71) (0.66) (0.62)
Distributions from capital gains......... -- -- -- -- -- (0.51)
Return of capital........................ -- (0.07) (0.06) (0.11) (0.09) (0.17)
---------------------------------------------------------------------------------------------------------------------------------
Total distributions.................... (0.33) (0.79) (0.81) (0.82) (0.75) (1.30)
---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $19.68 $18.04 $17.89 $14.57 $15.76 $18.80
---------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN.............................. 10.95%(1) 5.41% 28.84% -2.45% -12.33% 24.74%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in
thousands)............................... $827,979 $621,590 $436,764 $241,716 $164,172 $151,554
Ratio of expenses to average net assets... 0.94%(2) 0.95% 0.96% 0.99% 1.01% 1.02%
Ratio of net investment income to average
net assets............................... 3.69%(2) 4.65% 5.16% 5.66% 4.60% 4.87%
Portfolio turnover rate................... 22%(1) 41% 25% 29% 6% 34%
(1) Not annualized
(2) Annualized
See Accompanying Notes to Financial Statements
35
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
COLUMBIA TECHNOLOGY FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
[Enlarge/Download Table]
Six Months Ended
June 30, 2002
(Unaudited) 2001 2000(1)
------ ---------
---------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $6.13 $8.63 $10.00
---------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)............. (0.04) (0.08) 0.01
Net realized and unrealized losses on
investments............................ (1.48) (2.42) (1.37)
---------------------------------------------------------------------------------------
Total from investment operations....... (1.52) (2.50) (1.36)
---------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income..... -- -- (0.01)
---------------------------------------------------------------------------------------
Total distributions.................... -- -- (0.01)
---------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $4.61 $6.13 $8.63
---------------------------------------------------------------------------------------
TOTAL RETURN.............................. -24.80%(2) -28.97% -13.78%(2)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in
thousands)............................... $9,835 $10,385 $4,327
Ratio of expenses to average net assets... 1.65%(3) 1.69% 1.48%(3)
Ratio of expenses to average net assets
before voluntary reimbursement........... 2.73%(3) 2.82% 8.97%(3)
Ratio of net investment income (loss) to
average net assets....................... (1.43)%(3) (1.26)% 0.99%(3)
Portfolio turnover rate................... 121%(2) 413% 63%(2)
(1) From inception of operations on October 27, 2000.
(2) Not annualized
(3) Annualized
COLUMBIA STRATEGIC VALUE FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
[Enlarge/Download Table]
Six Months Ended
June 30, 2002
(Unaudited) 2001 2000(1)
------ ---------
---------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $14.52 $11.23 $10.00
---------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income.................... 0.05 0.05 0.02
Net realized and unrealized gains on
investments............................ 0.28 3.29 1.23
---------------------------------------------------------------------------------------
Total from investment operations....... 0.33 3.34 1.25
---------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income..... -- (0.05) (0.02)
---------------------------------------------------------------------------------------
Total distributions.................... -- (0.05) (0.02)
---------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $14.85 $14.52 $11.23
---------------------------------------------------------------------------------------
TOTAL RETURN.............................. 2.27%(2) 29.76% 12.25%(2)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in
thousands)............................... $343,078 $139,504 $9,526
Ratio of gross expenses to average net
assets................................... 0.94%(3) 1.13% 1.34%(3)
Ratio of expenses to average net assets
before voluntary reimbursement........... 0.94%(3) 1.13% 5.31%(3)
Ratio of net investment income to average
net assets............................... 0.74%(3) 0.71% 1.92%(3)
Portfolio turnover rate................... 91%(2) 278% 64%(2)
(1) From inception of operations on October 27, 2000.
(2) Not annualized
(3) Annualized
See Accompanying Notes to Financial Statements
36
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
COLUMBIA BALANCED FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
[Enlarge/Download Table]
Six Months Ended
June 30, 2002
(UNAUDITED) 2001 2000 1999 1998 1997
------ ------ ------ ------ ------
---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $20.67 $22.96 $24.72 $23.17 $21.42 $20.32
---------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income.................... 0.26 0.58 0.67 0.69 0.72 0.84
Net realized and unrealized gains
(losses) on investments................ (1.88) (2.28) (0.41) 2.21 3.52 2.92
---------------------------------------------------------------------------------------------------------------------------------
Total from investment operations....... (1.62) (1.70) 0.26 2.90 4.24 3.76
---------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income..... (0.26) (0.59) (0.68) (0.69) (0.73) (0.83)
Distributions from capital gains......... -- -- (1.34) (0.66) (1.76) (1.83)
---------------------------------------------------------------------------------------------------------------------------------
Total distributions.................... (0.26) (0.59) (2.02) (1.35) (2.49) (2.66)
---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $18.79 $20.67 $22.96 $24.72 $23.17 $21.42
---------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN.............................. -7.88%(1) -7.40% 0.82% 12.70% 20.07% 18.74%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in
thousands)............................... $810,106 $983,749 $1,126,854 $1,040,940 $975,381 $792,378
Ratio of expenses to average net assets... 0.69%(2) 0.67% 0.65% 0.66% 0.67% 0.68%
Ratio of net investment income to average
net assets............................... 2.63%(2) 2.73% 2.73% 2.85% 3.22% 3.83%
Portfolio turnover rate................... 58%(1) 111% 105% 133% 128% 149%
(1) Not annualized
(2) Annualized
COLUMBIA SHORT TERM BOND FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
[Enlarge/Download Table]
Six Months Ended
June 30, 2002
(UNAUDITED) 2001 2000 1999 1998 1997
------ ------ ------ ------ ------
---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $8.55 $8.36 $8.20 $8.39 $8.29 $8.24
---------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income.................... 0.19 0.46 0.42 0.33 0.38 0.41
Net realized and unrealized gains
(losses) on investments................ 0.04 0.21 0.16 (0.18) 0.14 0.05
---------------------------------------------------------------------------------------------------------------------------------
Total from investment operations....... 0.23 0.67 0.58 0.15 0.52 0.46
---------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income..... (0.19) (0.46) (0.42) (0.33) (0.38) (0.41)
Distributions from capital gains......... -- (0.02) -- (0.01) (0.04) --
---------------------------------------------------------------------------------------------------------------------------------
Total distributions.................... (0.19) (0.48) (0.42) (0.34) (0.42) (0.41)
---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $8.59 $8.55 $8.36 $8.20 $8.39 $8.29
---------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN.............................. 2.69%(1) 8.07% 7.26% 1.80% 6.43% 5.76%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in
thousands)............................... $85,574 $62,930 $35,856 $38,072 $40,578 $37,837
Ratio of expenses to average net assets... 0.75% 0.75% 0.88% 0.91% 0.89% 0.87%
Ratio of expenses to average net assets
before contractual reimbursement......... 0.86%(2) 0.91% 0.90% 0.91% 0.89% 0.87%
Ratio of net investment income to average
net assets............................... 4.42%(2) 5.26% 5.09% 4.09% 4.55% 4.99%
Portfolio turnover rate................... 51%(1) 137% 147% 211% 182% 184%
(1) Not annualized
(2) Annualized
See Accompanying Notes to Financial Statements
37
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
COLUMBIA FIXED INCOME SECURITIES FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
[Enlarge/Download Table]
Six Months Ended
June 30, 2002
(UNAUDITED) 2001 2000 1999 1998 1997
------ ------ ------ ------ ------
---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $13.22 $12.97 $12.44 $13.42 $13.41 $13.08
---------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income.................... 0.36 0.78 0.82 0.78 0.83 0.85
Net realized and unrealized gains
(losses) on investments................ 0.03 0.25 0.53 (0.98) 0.14 0.36
---------------------------------------------------------------------------------------------------------------------------------
Total from investment operations....... 0.39 1.03 1.35 (0.20) 0.97 1.21
---------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income..... (0.36) (0.78) (0.82) (0.78) (0.83) (0.85)
Distributions from capital gains......... -- -- -- (0.00)* (0.13) (0.03)
---------------------------------------------------------------------------------------------------------------------------------
Total distributions.................... (0.36) (0.78) (0.82) (0.78) (0.96) (0.88)
---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $13.25 $13.22 $12.97 $12.44 $13.42 $13.41
---------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN.............................. 3.00%(1) 8.13% 11.27% -1.50% 7.44% 9.56%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in
thousands)............................... $475,182 $465,743 $378,799 $397,147 $422,330 $381,333
Ratio of expenses to average net assets... 0.67%(2) 0.66% 0.66% 0.64% 0.65% 0.66%
Ratio of net investment income to average
net assets............................... 5.52%(2) 5.92% 6.53% 6.03% 6.15% 6.43%
Portfolio turnover rate................... 67%(1) 110% 105% 155% 107% 196%
* Amount represents less than $0.01 per share.
(1) Not annualized
(2) Annualized
COLUMBIA NATIONAL MUNICIPAL BOND FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
[Enlarge/Download Table]
Six Months Ended
June 30, 2002
(Unaudited) 2001 2000 1999(1)
------ ------ ---------
-----------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $9.77 $9.82 $9.28 $10.00
-----------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income.................... 0.21 0.44 0.44 0.34
Net realized and unrealized gains
(losses) on investments................ 0.27 (0.03) 0.54 (0.72)
--------------------------------------------------------------------------------------------------
Total from investment operations....... 0.48 0.41 0.98 (0.38)
--------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income..... (0.21) (0.44) (0.44) (0.34)
Distributions from capital gains......... -- (0.02) -- --
--------------------------------------------------------------------------------------------------
Total distributions.................... (0.21) (0.46) (0.44) (0.34)
-----------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $10.04 $9.77 $9.82 $9.28
-----------------------------------------------------------------------------------------------------
TOTAL RETURN.............................. 4.97%(2) 4.16% 10.87% -3.93%(2)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in
thousands)............................... $13,712 $13,769 $10,898 $10,135
Ratio of expenses to average net assets... 0.65%(3) 0.65% 0.65% 0.65%(3)
Ratio of expenses to average net assets
before contractual reimbursement......... 1.12%(3) 1.31% 1.29% 1.72%(3)
Ratio of net investment income to average
net assets............................... 4.32%(3) 4.47% 4.68% 4.21%(3)
Portfolio turnover rate................... 27%(2) 20% 21% 12%(3)
(1) From inception of operations on February 10, 1999.
(2) Not annualized
(3) Annualized
See Accompanying Notes to Financial Statements
38
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
COLUMBIA OREGON MUNICIPAL BOND FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
[Enlarge/Download Table]
Six Months Ended
June 30, 2002
(UNAUDITED) 2001 2000 1999 1998 1997
------ ------ ------ ------ ------
---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $12.08 $12.13 $11.56 $12.46 $12.47 $12.15
---------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income.................... 0.28 0.57 0.58 0.56 0.58 0.60
Net realized and unrealized gains
(losses) on investments................ 0.30 (0.02) 0.58 (0.88) 0.10 0.39
---------------------------------------------------------------------------------------------------------------------------------
Total from investment operations....... 0.58 0.55 1.16 (0.32) 0.68 0.99
---------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income..... (0.28) (0.57) (0.58) (0.56) (0.58) (0.60)
Distributions from capital gains......... -- (0.03) (0.01) (0.02) (0.11) (0.07)
---------------------------------------------------------------------------------------------------------------------------------
Total distributions.................... (0.28) (0.60) (0.59) (0.58) (0.69) (0.67)
---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $12.38 $12.08 $12.13 $11.56 $12.46 $12.47
---------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN.............................. 4.83%(1) 4.55% 10.28% -2.65% 5.58% 8.36%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in
thousands)............................... $498,639 $491,638 $436,544 $409,919 $462,809 $409,148
Ratio of expenses to average net assets... 0.58%(2) 0.57% 0.58% 0.57% 0.58% 0.57%
Ratio of net investment income to average
net assets............................... 4.59%(2) 4.64% 4.92% 4.64% 4.60% 4.87%
Portfolio turnover rate................... 13%(1) 14% 22% 28% 17% 17%
(1) Not annualized
(2) Annualized
COLUMBIA HIGH YIELD FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
[Enlarge/Download Table]
Six Months Ended
June 30, 2002
(UNAUDITED) 2001 2000 1999 1998 1997
------ ------ ------ ------ ------
---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $8.87 $8.98 $9.32 $9.84 $10.04 $9.94
---------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income.................... 0.31 0.69 0.75 0.74 0.76 0.81
Net realized and unrealized gains
(losses) on investments................ (0.45) (0.11) (0.34) (0.51) (0.15) 0.40
---------------------------------------------------------------------------------------------------------------------------------
Total from investment operations....... (0.14) 0.58 0.41 0.23 0.61 1.21
---------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income..... (0.31) (0.69) (0.75) (0.74) (0.76) (0.81)
Distributions from capital gains......... -- -- -- (0.01) (0.05) (0.30)
---------------------------------------------------------------------------------------------------------------------------------
Total distributions.................... (0.31) (0.69) (0.75) (0.75) (0.81) (1.11)
---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $8.42 $8.87 $8.98 $9.32 $9.84 $10.04
---------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN.............................. -1.67%(1) 6.63% 4.61% 2.38% 6.26% 12.70%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in
thousands)............................... $412,938 $238,994 $97,575 $71,678 $57,524 $39,278
Ratio of expenses to average net assets... 0.82%(2) 0.85% 0.93% 0.91% 0.95% 1.00%
Ratio of expenses to average net assets
before voluntary reimbursement........... 0.82%(2) 0.85% 0.93% 0.91% 0.95% 1.02%
Ratio of net investment income to average
net assets............................... 7.07%(2) 7.64% 8.22% 7.71% 7.52% 8.05%
Portfolio turnover rate................... 19%(1) 69% 50% 49% 79% 124%
(1) Not annualized
(2) Annualized
See Accompanying Notes to Financial Statements
39
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
COLUMBIA DAILY INCOME COMPANY
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
[Enlarge/Download Table]
Six Months Ended
June 30, 2002
(UNAUDITED) 2001 2000 1999 1998 1997
------ ------ ------ ------ ------
---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
---------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income.................... 0.006 0.036 0.058 0.046 0.050 0.050
---------------------------------------------------------------------------------------------------------------------------------
Total from investment operations....... 0.006 0.036 0.058 0.046 0.050 0.050
---------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income..... (0.006) (0.036) (0.058) (0.046) (0.050) (0.050)
---------------------------------------------------------------------------------------------------------------------------------
Total distributions.................... (0.006) (0.036) (0.058) (0.046) (0.050) (0.050)
---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
---------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN.............................. 0.62%(1) 3.70% 6.00% 4.71% 5.09% 5.11%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in
thousands)............................... $1,205,970 $1,253,535 $1,198,151 $1,165,289 $1,109,141 $1,169,096
Ratio of expenses to average net assets... 0.60%(2) 0.60% 0.60% 0.64% 0.62% 0.63%
Ratio of net investment income to average
net assets............................... 1.26%(2) 3.61% 5.82% 4.61% 4.97% 4.99%
(1) Not annualized
(2) Annualized
See Accompanying Notes to Financial Statements
40
SCHEDULE OF INVESTMENTS
--------------------------------------------------------------------------------
[Download Table]
COLUMBIA COMMON STOCK FUND
JUNE 30, 2002 (UNAUDITED) SHARES VALUE
-----------------------------------------------------------------------
COMMON STOCKS (98.0%)
ADVERTISING AGENCIES (0.6%)
Interpublic Group of Companies,
Inc., The....................... 131,400 $ 3,253,464
---------------
AEROSPACE (1.3%)
United Technologies Corp. ........ 99,450 6,752,655
---------------
AUTO PARTS: ORIGINAL EQUIPMENT (0.8%)
Magna International, Inc. (Class
A).............................. 61,050 4,203,293
---------------
AUTOMOBILES (0.6%)
General Motors Corp. ............. 58,600 3,132,170
---------------
BANKS (4.0%)
Bank of America Corp. ............ 182,705 12,855,124
Bank One Corp. ................... 223,650 8,606,052
---------------
21,461,176
---------------
BANKS: NEW YORK CITY (1.9%)
J.P. Morgan Chase & Co. .......... 292,110 9,908,371
---------------
BEVERAGE: SOFT DRINKS (0.5%)
Pepsi Bottling Group, Inc. ....... 82,100 2,528,680
---------------
BIOTECH RESEARCH & PRODUCTS (2.4%)
*Amgen, Inc....................... 73,700 3,086,556
Baxter International, Inc. ....... 221,750 9,854,570
---------------
12,941,126
---------------
CABLE TELEVISION SERVICES (1.2%)
*Liberty Media Corp. (Class A).... 666,464 6,664,640
---------------
CHEMICALS (2.1%)
DuPont, E.I. de Nemours & Co...... 115,500 5,128,200
Praxair, Inc. .................... 103,200 5,879,304
---------------
11,007,504
---------------
COMMUNICATIONS & MEDIA (0.7%)
*AOL Time Warner, Inc. ........... 247,339 3,638,357
---------------
COMMUNICATIONS TECHNOLOGY (1.4%)
*Cisco Systems, Inc. ............. 354,300 4,942,485
Motorola, Inc. ................... 193,500 2,790,270
---------------
7,732,755
---------------
COMPUTER SERVICES SOFTWARE & SYSTEMS (3.6%)
Adobe Systems, Inc. .............. 61,275 1,746,337
*Intuit, Inc. .................... 43,175 2,146,661
*Microsoft Corp................... 241,200 13,193,640
*Oracle Corp. .................... 254,550 2,410,589
---------------
19,497,227
---------------
[Download Table]
-----------------------------------------------------------------------
SHARES VALUE
COMPUTER TECHNOLOGY (1.8%)
*Apple Computer, Inc. ............ 265,650 $ 4,707,318
Hewlett-Packard Co. .............. 231,900 3,543,432
*Sun Microsystems, Inc. .......... 293,600 1,470,936
---------------
9,721,686
---------------
CONSUMER PRODUCTS (1.7%)
Alberto-Culver Co. (Class B)...... 26,900 1,285,820
Gillette Co. ..................... 227,150 7,693,570
---------------
8,979,390
---------------
COSMETICS (0.5%)
Lauder, Estee Companies, Inc., The
(Class A)....................... 75,000 2,640,000
---------------
DIVERSIFIED FINANCIAL SERVICES (7.4%)
American Express Co. ............. 316,400 11,491,648
Citigroup, Inc. .................. 514,339 19,930,636
Marsh & McLennan Companies,
Inc. ........................... 37,050 3,579,030
Merrill Lynch & Co., Inc. ........ 71,000 2,875,500
Morgan Stanley.................... 40,650 1,751,202
---------------
39,628,016
---------------
DRUGS & PHARMACEUTICALS (10.6%)
Abbott Laboratories............... 136,250 5,129,812
AmerisourceBergen Corp. .......... 75,600 5,745,600
Bristol-Myers Squibb Co. ......... 200,468 5,152,028
*MedImmune, Inc. ................. 57,800 1,525,920
Pfizer, Inc. ..................... 597,374 20,908,090
Pharmacia Corp. .................. 330,500 12,377,225
Teva Pharmaceutical Industries
Ltd. ADR........................ 88,805 5,930,398
---------------
56,769,073
---------------
ELECTRONICS: EQUIPMENT & COMPONENTS (0.6%)
Koninklijke Philips Electronics
NV.............................. 124,500 3,436,200
---------------
ELECTRONICS: SEMICONDUCTORS (1.8%)
*Atmel Corp. ..................... 201,200 1,259,512
Intel Corp. ...................... 51,300 937,251
*Microchip Technology, Inc. ...... 37,500 1,028,625
*Micron Technology, Inc. ......... 37,475 757,744
*National Semiconductor Corp. .... 199,750 5,826,708
---------------
9,809,840
---------------
ELECTRONICS: TECHNOLOGY (1.2%)
Raytheon Co. ..................... 157,350 6,412,012
---------------
ENTERTAINMENT (1.2%)
*Viacom, Inc. (Class B)........... 144,300 6,402,591
---------------
FINANCE COMPANIES (0.4%)
Capital One Financial Corp. ...... 38,200 2,332,110
---------------
See Accompanying Notes to Financial Statements
41
SCHEDULE OF INVESTMENTS
--------------------------------------------------------------------------------
[Download Table]
COLUMBIA COMMON STOCK FUND (CONT.)
JUNE 30, 2002 (UNAUDITED) SHARES VALUE
-----------------------------------------------------------------------
FINANCE: SMALL LOAN (0.5%)
SLM Corp. ........................ 25,300 $ 2,451,570
---------------
FINANCIAL DATA PROCESSING SERVICES (1.4%)
Automatic Data Processing, Inc.... 29,800 1,297,790
First Data Corp. ................. 162,200 6,108,452
---------------
7,406,242
---------------
FINANCIAL MISCELLANEOUS (1.5%)
Freddie Mac....................... 50,250 3,075,300
MBNA Corp. ....................... 141,900 4,692,633
---------------
7,767,933
---------------
FOODS (0.4%)
Sara Lee Corp. ................... 109,300 2,255,952
---------------
FOREST PRODUCTS (0.5%)
Weyerhaeuser Co. ................. 45,200 2,886,020
---------------
HEALTH CARE FACILITIES (1.9%)
HCA, Inc. ........................ 54,100 2,569,750
*HEALTHSOUTH Corp. ............... 170,100 2,175,579
*Laboratory Corporation of America
Holdings........................ 121,500 5,546,475
---------------
10,291,804
---------------
HEALTH CARE MANAGEMENT SERVICES (0.3%)
Aetna, Inc. ...................... 36,600 1,755,702
---------------
INSURANCE: LIFE (2.0%)
*Anthem, Inc. .................... 54,000 3,629,880
*Principal Financial Group,
Inc. ........................... 139,900 4,336,900
*Prudential Financial, Inc. ...... 83,200 2,775,552
---------------
10,742,332
---------------
INSURANCE: MULTI-LINE (1.9%)
American International Group,
Inc. ........................... 150,137 10,243,848
---------------
INSURANCE: PROPERTY-CASUALTY (1.3%)
*Berkshire Hathaway, Inc. (Class
A).............................. 50 3,340,000
Chubb Corp........................ 50,100 3,547,080
---------------
6,887,080
---------------
LEISURE TIME (0.8%)
Carnival Corp. ................... 149,300 4,134,117
---------------
MACHINERY: OIL WELL EQUIPMENT & SERVICES (1.4%)
GlobalSantaFe Corp. .............. 97,625 2,670,044
*Noble Corp. ..................... 77,600 2,995,360
Rowan Companies, Inc. ............ 81,750 1,753,537
---------------
7,418,941
---------------
[Download Table]
-----------------------------------------------------------------------
SHARES VALUE
MACHINERY: SPECIALTY (0.2%)
Constellation Energy Group,
Inc. ........................... 37,100 $ 1,088,514
---------------
MEDICAL & DENTAL SUPPLIES (0.9%)
Beckman Coulter, Inc. ............ 94,550 4,718,045
---------------
MISCELLANEOUS EQUIPMENT (0.4%)
Grainger, W.W., Inc. ............. 47,000 2,354,700
---------------
MULTI-SECTOR COMPANIES (8.1%)
3M Co............................. 81,100 9,975,300
Eaton Corp. ...................... 19,400 1,411,350
General Electric Co. ............. 454,550 13,204,677
Honeywell International, Inc. .... 183,900 6,478,797
Illinois Tool Works, Inc. ........ 69,800 4,810,616
ITT Industries, Inc. ............. 20,900 1,475,540
*SPX Corp. ....................... 45,625 5,360,938
Tyco International Ltd. .......... 33,766 456,179
---------------
43,173,397
---------------
OIL: CRUDE PRODUCERS (2.3%)
Apache Corp. ..................... 75,530 4,341,464
Devon Energy Corp. ............... 83,100 4,095,168
EOG Resources, Inc. .............. 96,900 3,846,930
---------------
12,283,562
---------------
OIL: INTEGRATED DOMESTIC (0.4%)
Phillips Petroleum Co. ........... 38,850 2,287,488
---------------
OIL: INTEGRATED INTERNATIONAL (3.8%)
ChevronTexaco Corp. .............. 26,100 2,309,850
Exxon Mobil Corp. ................ 319,732 13,083,433
Royal Dutch Petroleum Co. ........ 88,900 4,913,503
---------------
20,306,786
---------------
PAPER (1.0%)
Bowater, Inc. .................... 38,200 2,076,934
International Paper Co. .......... 74,700 3,255,426
---------------
5,332,360
---------------
PRODUCTION TECHNOLOGY EQUIPMENT (2.1%)
*Applied Materials, Inc. ......... 145,900 2,775,018
*Taiwan Semiconductor
Manufacturing Company Ltd.
ADR............................. 445,720 5,794,360
*United Microelectronics Corp.
ADR............................. 379,900 2,792,265
---------------
11,361,643
---------------
RADIO & TELEVISION BROADCASTERS (0.5%)
*Clear Channel Communications,
Inc. ........................... 83,625 2,677,672
---------------
RAILROADS (0.6%)
Union Pacific Corp. .............. 51,400 3,252,592
---------------
RESTAURANTS (1.3%)
McDonald's Corp. ................. 243,900 6,938,955
---------------
See Accompanying Notes to Financial Statements
42
SCHEDULE OF INVESTMENTS
--------------------------------------------------------------------------------
[Download Table]
SHARES OR
PRINCIPAL
AMOUNT VALUE
-----------------------------------------------------------------------
RETAIL (8.2%)
Circuit City Group................ 325,005 $ 6,093,844
Gap, Inc., The.................... 509,400 7,233,480
*Kohl's Corp. .................... 94,450 6,619,056
Nordstrom, Inc. .................. 147,850 3,348,803
Sears, Roebuck & Co. ............. 81,300 4,414,590
Wal-Mart Stores, Inc. ............ 298,150 16,401,231
---------------
44,111,004
---------------
SECURITY BROKERAGE & SERVICES (0.6%)
Franklin Resources, Inc. ......... 70,900 3,023,176
---------------
SERVICES: COMMERCIAL (2.0%)
*Accenture Ltd. (Class A)......... 209,750 3,985,250
Waste Management, Inc. ........... 256,200 6,674,010
---------------
10,659,260
---------------
TOBACCO (0.9%)
Carolina Group.................... 61,250 1,656,813
UST, Inc. ........................ 99,500 3,383,000
---------------
5,039,813
---------------
TRANSPORTATION MISCELLANEOUS (0.6%)
United Parcel Service, Inc. (Class
B).............................. 54,500 3,365,375
---------------
UTILITIES: CABLE TELEVISION & RADIO (0.7%)
*Comcast Corp. (Class A
Special)........................ 151,400 3,609,376
---------------
UTILITIES: TELECOMMUNICATIONS (1.2%)
AT&T Corp......................... 134,700 1,441,290
SBC Communications, Inc. ......... 165,550 5,049,275
---------------
6,490,565
---------------
Total Common Stocks
(Cost $508,218,247)................. 525,168,160
---------------
PREFERRED STOCK (1.2%)
COMMUNICATIONS & MEDIA
News Corporation Ltd., The ADR
(Cost $7,225,803)............... 314,950 6,220,263
---------------
REPURCHASE AGREEMENT (1.8%)
J.P. Morgan Securities, Inc. 1.85%
dated 06/28/2002, due 07/01/2002
in the amount of $9,452,559.
Collateralized by U.S. Treasury
Bills due 07/05/2002 to
11/29/2014 U.S. Treasury Strips
due 02/15/2010 to 08/15/2028
(Cost $9,451,120)............... $ 9,451,120 9,451,120
---------------
[Download Table]
-----------------------------------------------------------------------
VALUE
TOTAL INVESTMENTS (101.0%)
(Cost $524,895,170)................. $ 540,839,543
OTHER ASSETS LESS LIABILITIES
(-1.0%)............................. (5,114,242)
---------------
NET ASSETS (100.0%).................. $ 535,725,301
===============
* Non-income producing
[Download Table]
COLUMBIA GROWTH FUND
JUNE 30, 2002 (UNAUDITED) SHARES VALUE
-----------------------------------------------------------------------
COMMON STOCKS (99.0%)
BANKS: NEW YORK CITY (1.0%)
J.P. Morgan Chase & Co. .......... 274,400 $ 9,307,648
---------------
BEVERAGE: SOFT DRINKS (4.1%)
Coca-Cola Co. .................... 357,900 20,042,400
Pepsi Bottling Group, Inc. ....... 158,400 4,878,720
PepsiCo, Inc. .................... 286,600 13,814,120
---------------
38,735,240
---------------
BIOTECH RESEARCH & PRODUCTS (3.5%)
*Amgen, Inc. ..................... 201,300 8,430,444
Baxter International, Inc. ....... 550,200 24,450,888
---------------
32,881,332
---------------
CABLE TELEVISION SERVICES (1.0%)
*Liberty Media Corp. (Class A).... 895,325 8,953,250
---------------
COMMUNICATIONS & MEDIA (0.9%)
*AOL Time Warner, Inc. ........... 553,895 8,147,795
---------------
COMMUNICATIONS TECHNOLOGY (2.0%)
*Cisco Systems, Inc. ............. 1,336,550 18,644,873
---------------
COMPUTER SERVICES SOFTWARE & SYSTEMS (7.9%)
Adobe Systems, Inc. .............. 233,875 6,665,438
*BEA Systems, Inc. ............... 288,500 2,714,785
*Intuit, Inc. .................... 160,825 7,996,219
*Microsoft Corp. ................. 938,400 51,330,480
*Rational Software Corp. ......... 424,450 3,484,734
*Siebel Systems, Inc. ............ 148,200 2,107,404
---------------
74,299,060
---------------
COMPUTER TECHNOLOGY (2.8%)
*Apple Computer, Inc. ............ 384,750 6,817,770
*Dell Computer Corp. ............. 604,900 15,812,086
*Sun Microsystems, Inc. .......... 784,500 3,930,345
---------------
26,560,201
---------------
CONSUMER ELECTRONICS (1.3%)
*Electronic Arts, Inc. ........... 181,550 11,991,378
---------------
See Accompanying Notes to Financial Statements
43
SCHEDULE OF INVESTMENTS
--------------------------------------------------------------------------------
[Download Table]
COLUMBIA GROWTH FUND (CONT.)
JUNE 30, 2002 (UNAUDITED) SHARES VALUE
-----------------------------------------------------------------------
CONSUMER PRODUCTS (2.3%)
Alberto-Culver Co. (Class B)...... 75,200 $ 3,594,560
Gillette Co. ..................... 523,200 17,720,784
---------------
21,315,344
---------------
CONTAINERS: PAPER & PLASTIC (0.3%)
Temple-Inland, Inc. .............. 49,600 2,869,856
---------------
COSMETICS (0.7%)
Lauder, Estee Companies, Inc., The
(Class A)....................... 179,400 6,314,880
---------------
DIVERSIFIED FINANCIAL SERVICES (2.1%)
Citigroup, Inc. .................. 225,400 8,734,250
Goldman Sachs Group, Inc. ........ 156,600 11,486,610
---------------
20,220,860
---------------
DRUG & GROCERY STORE CHAINS (1.1%)
Walgreen Co. ..................... 262,400 10,136,512
---------------
DRUGS & PHARMACEUTICALS (15.9%)
Abbott Laboratories............... 345,250 12,998,663
AmerisourceBergen Corp. .......... 108,900 8,276,400
Johnson & Johnson................. 453,400 23,694,684
*MedImmune, Inc. ................. 350,600 9,255,840
Pfizer, Inc. ..................... 1,414,475 49,506,625
Pharmacia Corp. .................. 553,850 20,741,682
Teva Pharmaceutical Industries
Ltd. ADR........................ 117,000 7,813,260
Wyeth............................. 341,850 17,502,720
---------------
149,789,874
---------------
ELECTRONICS (1.1%)
Samsung Electronics Co., Ltd. GDR
(144A).......................... 72,500 9,954,250
---------------
ELECTRONICS: SEMICONDUCTORS (4.5%)
*Atmel Corp. ..................... 436,850 2,734,681
*Celestica, Inc. ................. 307,550 6,984,461
*Flextronics International
Ltd. ........................... 391,950 2,794,603
Intel Corp. ...................... 585,700 10,700,739
*Microchip Technology, Inc. ...... 177,000 4,855,110
*Micron Technology, Inc. ......... 220,400 4,456,488
*National Semiconductor Corp. .... 337,350 9,840,499
---------------
42,366,581
---------------
ELECTRONICS: TECHNOLOGY (1.3%)
Raytheon Co. ..................... 288,900 11,772,675
---------------
[Download Table]
-----------------------------------------------------------------------
SHARES VALUE
ENTERTAINMENT (3.0%)
*Fox Entertainment Group, Inc. ... 234,700 $ 5,104,725
*Viacom, Inc. (Class B)........... 518,100 22,988,097
---------------
28,092,822
---------------
FINANCE COMPANIES (1.4%)
Capital One Financial Corp. ...... 217,200 13,260,060
---------------
FINANCE: SMALL LOAN (0.6%)
SLM Corp. ........................ 59,600 5,775,240
---------------
FINANCIAL DATA PROCESSING SERVICES (2.4%)
*Concord EFS, Inc. ............... 131,600 3,966,424
First Data Corp. ................. 364,850 13,740,251
Paychex, Inc. .................... 156,550 4,898,449
---------------
22,605,124
---------------
FINANCIAL MISCELLANEOUS (2.2%)
Fannie Mae........................ 67,800 5,000,250
Freddie Mac....................... 94,400 5,777,280
MBNA Corp. ....................... 306,500 10,135,955
---------------
20,913,485
---------------
FOODS (0.8%)
Kraft Foods, Inc. (Class A)....... 186,300 7,628,985
---------------
HEALTH CARE FACILITIES (1.8%)
HCA, Inc. ........................ 76,100 3,614,750
*Laboratory Corporation of America
Holdings........................ 187,350 8,552,528
*Tenet Healthcare Corp. .......... 65,400 4,679,370
---------------
16,846,648
---------------
HEALTH CARE MANAGEMENT SERVICES (0.4%)
UnitedHealth Group, Inc. ......... 44,000 4,028,200
---------------
HEALTH CARE SERVICES (0.8%)
McKesson Corp. ................... 233,000 7,619,100
---------------
INSURANCE: LIFE (1.2%)
*Anthem, Inc. .................... 173,300 11,649,226
---------------
INSURANCE: MULTI-LINE (2.1%)
American International Group,
Inc. ........................... 290,944 19,851,109
---------------
LEISURE TIME (0.8%)
Carnival Corp. ................... 278,000 7,697,820
---------------
MACHINERY: OIL WELL EQUIPMENT & SERVICES (1.9%)
*BJ Services Co. ................. 152,400 5,163,312
GlobalSantaFe Corp. .............. 77,200 2,111,420
*Noble Corp. ..................... 214,850 8,293,210
Rowan Companies, Inc. ............ 128,100 2,747,745
---------------
18,315,687
---------------
See Accompanying Notes to Financial Statements
44
SCHEDULE OF INVESTMENTS
--------------------------------------------------------------------------------
[Download Table]
SHARES VALUE
-----------------------------------------------------------------------
MULTI-SECTOR COMPANIES (5.3%)
3M Co. ........................... 60,500 $ 7,441,500
General Electric Co. ............. 1,103,650 32,061,032
Tyco International Ltd. .......... 765,800 10,345,958
---------------
49,848,490
---------------
OIL: CRUDE PRODUCERS (0.3%)
Anadarko Petroleum Corp. ......... 63,000 3,105,900
---------------
PAPER (0.3%)
Bowater, Inc. .................... 54,100 2,941,417
---------------
PRODUCTION TECHNOLOGY EQUIPMENT (2.4%)
*Applied Materials, Inc. ......... 150,300 2,858,706
*ASML Holding NV.................. 145,600 2,201,472
*Novellus Systems, Inc. .......... 71,450 2,429,300
*Taiwan Semiconductor
Manufacturing Company Ltd.
ADR............................. 787,270 10,234,510
*United Microelectronics Corp.
ADR............................. 646,600 4,752,510
---------------
22,476,498
---------------
RADIO & TELEVISION BROADCASTERS (0.8%)
*Clear Channel Communications,
Inc. ........................... 232,831 7,455,249
---------------
RETAIL (12.9%)
*AutoZone, Inc. .................. 133,950 10,354,335
*Bed, Bath & Beyond, Inc. ........ 276,750 10,444,545
*Best Buy Co., Inc. .............. 89,250 3,239,775
Circuit City Group................ 577,200 10,822,500
Gap, Inc., The.................... 1,111,900 15,788,980
Home Depot, Inc. ................. 239,300 8,789,489
*Kohl's Corp. .................... 240,694 16,867,836
Lowe's Companies, Inc. ........... 210,900 9,574,860
Wal-Mart Stores, Inc. ............ 641,050 35,264,160
---------------
121,146,480
---------------
SECURITY BROKERAGE & SERVICES (0.5%)
Franklin Resources, Inc. ......... 106,200 4,528,368
---------------
SERVICES: COMMERCIAL (1.3%)
*Accenture Ltd. (Class A)......... 515,775 9,799,725
*eBay, Inc. ...................... 46,150 2,843,763
---------------
12,643,488
---------------
[Download Table]
-----------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
TOBACCO (0.9%)
UST, Inc. ........................ 261,900 $ 8,904,600
---------------
UTILITIES: CABLE TELEVISION & RADIO (1.1%)
*Comcast Corp. (Class A
Special)........................ 441,400 10,522,976
---------------
Total Common Stocks (Cost
$902,032,204)....................... 932,118,581
---------------
PREFERRED STOCK (1.0%)
COMMUNICATIONS & MEDIA
News Corporation Ltd., The ADR
(Cost $12,066,158).............. 508,900 10,050,775
---------------
CONVERTIBLE BONDS (0.7%)
TECHNOLOGY
Juniper Networks, Inc. 4.75%
03/15/2007...................... $ 6,870,000 4,242,225
ONI Systems Corp. 5.00%
10/15/2005...................... 3,270,000 2,231,775
---------------
(Cost $7,728,862)................. 6,474,000
---------------
REPURCHASE AGREEMENT (1.3%)
J.P. Morgan Securities, Inc.
1.85% dated 06/28/2002,
due 07/01/2002 in the amount of
$12,306,613. Collateralized by
U.S. Treasury Bills due
07/05/2002 to 11/29/2014 U.S.
Treasury Strips due 02/15/2010
to 08/15/2028
(Cost $12,304,733).............. 12,304,733 12,304,733
---------------
TOTAL INVESTMENTS (102.0%) (Cost
$934,131,957)....................... 960,948,089
OTHER ASSETS LESS LIABILITIES
(-2.0%)............................. (19,217,357)
---------------
NET ASSETS (100.0%).................. $ 941,730,732
===============
* Non-income producing
See Accompanying Notes to Financial Statements
45
SCHEDULE OF INVESTMENTS
--------------------------------------------------------------------------------
[Download Table]
COLUMBIA INTERNATIONAL STOCK FUND
JUNE 30, 2002 (UNAUDITED) SHARES VALUE
----------------------------------------------------------------------
COMMON STOCKS (91.3%)
AUSTRALIA (2.0%)
Amcor Ltd. (Containers & Packaging).... 88,400 $ 408,915
Perpetual Trustees Australia Ltd.
(Diversified Financials)............. 27,250 656,262
Toll Holdings Ltd. (Road & Rail)....... 37,300 663,775
Wesfarmers Ltd. (Industrial
Conglomerates)....................... 72,550 1,107,795
------------
2,836,747
------------
CANADA (0.6%)
Bombardier, Inc. (Class B) (Aerospace &
Defense)............................. 100,300 830,948
------------
FINLAND (2.0%)
Nokia Corp., ADR (Communications
Equipment)........................... 32,800 474,944
Stora Enso Oyj (Paper & Forest
Products)............................ 73,400 1,028,657
Upm-Kymmene Oyj (Paper & Forest
Products)............................ 34,100 1,342,406
------------
2,846,007
------------
FRANCE (6.3%)
Aventis SA (Pharmaceuticals)........... 14,800 1,048,759
BNP Paribas (Banks).................... 33,400 1,847,254
Lafarge SA (Construction Materials).... 7,300 728,176
*Orange SA (Wireless Telecommunication
Services)............................ 144,900 666,878
Pechiney SA (Class A) (Metals &
Mining).............................. 17,100 781,088
STMicroelectronics NV (Semiconductor
Equipment & Products)................ 19,800 481,734
*Thomson Multimedia (Household
Durables)............................ 46,900 1,109,355
Total Fina Elf SA (Oil & Gas).......... 9,029 1,465,999
*Wavecom SA (Communications
Equipment)........................... 20,700 837,175
------------
8,966,418
------------
GERMANY (4.3%)
Altana AG (Pharmaceuticals)............ 26,900 1,459,597
BASF AG (Chemicals).................... 16,200 754,378
Bayerische Motoren Werke (BMW) AG
(Automobiles)........................ 28,400 1,153,076
DaimlerChrysler AG (Automobiles)....... 16,700 805,441
[Download Table]
----------------------------------------------------------------------
SHARES VALUE
Muenchener Rueckversicherungs-
Gesellschaft AG (Insurance).......... 5,550 $ 1,315,517
Puma AG Rudolf Dassler Sport (Textiles
& Apparel)........................... 8,300 601,189
------------
6,089,198
------------
HONG KONG (1.3%)
Tracker Fund of Hong Kong (Diversified
Financials).......................... 1,324,700 1,817,284
------------
IRELAND (0.5%)
CRH plc (Construction Materials)....... 45,300 738,200
------------
ITALY (4.9%)
Autostrade S.p.A (Transportation
Infrastructure)...................... 201,600 1,670,493
Eni S.p.A (Oil & Gas).................. 97,450 1,549,529
Luxottica Group S.p.A, ADR (Health Care
Equipment & Supplies)................ 47,400 900,600
Riunione Adriatica di Sicurta S.p.A
(Insurance).......................... 96,100 1,289,837
Unicredito Italiano S.p.A (Banks)...... 329,500 1,490,435
------------
6,900,894
------------
JAPAN (21.3%)
Advantest Corp. (Semiconductor
Equipment & Instruments)............. 13,200 821,585
AEON Co., Ltd. (Multiline Retail)...... 73,000 1,949,004
Canon, Inc. (Office Electronics)....... 53,000 2,003,153
Daimaru, Inc., The (Consumer
Discretionary)....................... 152,000 698,772
Hankyu Department Stores, Inc.
(Consumer Discretionary)............. 92,000 700,040
Honda Motor Co., Ltd. (Automobiles).... 31,100 1,261,063
Ito-Yokado Co., Ltd. (Multiline
Retail).............................. 42,000 2,102,522
Keyence Corp. (Electronic Equipment &
Instruments)......................... 7,500 1,588,781
Komatsu Ltd. (Machinery)............... 325,000 1,163,270
Mitsubishi Heavy Inds., Ltd.
(Machinery).......................... 303,000 917,676
NEC Corp. (Computers & Peripherals).... 95,000 661,043
Net One Systems Co., Ltd. (IT
Consulting & Services)............... 88 493,392
Nidec Corp. (Electrical Equipment &
Instruments)......................... 14,000 1,015,051
Nissin Healthcare Food Service Co.,
Ltd. (Hotels, Restaurants &
Leisure)............................. 48,000 1,133,359
Nitto Denko Corp. (Electrical
Equipment)........................... 39,200 1,285,342
NSK Ltd. (Machinery)................... 180,000 747,897
NTT DOCOMO, Inc. (Wireless
Telecommunication Services).......... 385 947,595
Olympus Optical Co., Ltd. (Health Care
Equipment & Supplies)................ 62,000 865,939
See Accompanying Notes to Financial Statements
46
SCHEDULE OF INVESTMENTS
--------------------------------------------------------------------------------
[Download Table]
SHARES VALUE
----------------------------------------------------------------------
Pioneer Corp. (Household Durables)..... 25,000 $ 447,412
Ricoh Co., Ltd. (Office Electronics)... 37,000 640,560
Rohm Co., Ltd. (Semiconductor Equipment
& Products).......................... 12,000 1,791,148
Seven-Eleven Japan Co., Ltd. (Food &
Drug Retailing)...................... 41,000 1,614,603
Shimamura Co., Ltd. (Specialty
Retail).............................. 18,000 1,381,657
Sony Corp. (Household Durables)........ 38,000 2,006,907
Sumitomo Bakelite Co., Ltd.
(Chemicals).......................... 173,300 1,256,488
Toyota Motor Corp. (Automobiles)....... 25,000 663,296
------------
30,157,555
------------
KOREA (4.4%)
CJ39 Shopping (Internet & Catalog
Retail).............................. 10,000 684,977
Humax Co., Ltd. (Household Durables)... 11,600 253,125
Hyundai Motor Co., Ltd.
(Automobiles)........................ 9,300 279,473
Kookmin Bank (Banks)................... 29,000 1,407,860
Pacific Corp. (Personal Products)...... 16,500 1,920,262
Samsung Electronics (Semiconductor
Equipment & Products)................ 3,800 1,039,269
Shinsegae Co., Ltd. (Multiline
Retail).............................. 3,500 593,535
------------
6,178,501
------------
MEXICO (2.1%)
*Corporacion Geo SA de CV (Household
Durables)............................ 286,000 589,561
*Grupo Televisa SA (CPO) (Media)....... 428,500 810,061
Wal-Mart de Mexico SA de CV (Multiline
Retail).............................. 596,000 1,618,749
------------
3,018,371
------------
NETHERLANDS (5.5%)
ABN Amro Holding NV (Banks)............ 60,100 1,091,562
*ASML Holding NV (Semiconductor
Equipment & Products)................ 38,900 588,168
ING Groep NV (CVA) (Diversified
Financials).......................... 45,700 1,173,496
Koninklijke Philips Electronic NV
(Household Durables)................. 40,900 1,141,935
Royal Dutch Petroleum Co. (Oil &
Gas)................................. 24,900 1,386,981
TPG NV (Air Freight & Couriers)........ 47,300 1,068,364
Unilever NV (CVA) (Food Products)...... 19,700 1,289,947
------------
7,740,453
------------
SINGAPORE (3.0%)
City Developments Ltd. (Real Estate)... 257,000 829,168
*Neptune Orient Lines Ltd. (Marine).... 1,766,500 1,019,879
[Download Table]
----------------------------------------------------------------------
SHARES VALUE
Singapore Airlines Ltd. (Airlines)..... 191,100 $ 1,395,356
Want Want Holdings Ltd. (Food
Products)............................ 1,066,000 1,028,690
------------
4,273,093
------------
SPAIN (2.9%)
*Amadeus Global Travel Distribution SA
(Class A) (Commercial Services &
Supplies)............................ 231,900 $ 1,484,116
Grupo Ferrovial SA (Construction &
Engineering)......................... 60,400 1,647,007
Indra Sistemas SA (IT Consulting &
Services)............................ 106,100 916,886
------------
4,048,009
------------
SWEDEN (0.9%)
Svenska Cellulosa AB (Class B) (Paper &
Forest Products)..................... 35,700 1,270,258
------------
SWITZERLAND (5.9%)
Givaudan SA (Chemicals)................ 3,500 1,411,148
*Logitech International SA (Computers &
Peripherals)......................... 36,700 1,706,575
Nestle SA (Food Products).............. 5,850 1,364,076
Novartis AG (Pharmaceuticals).......... 44,400 1,952,747
Synthes-Stratec, Inc. (Health Care
Equipment & Supplies)................ 1,300 794,947
UBS AG (Banks)......................... 22,200 1,116,601
------------
8,346,094
------------
TAIWAN (0.4%)
*ASE Test Ltd. (Semiconductor Equipment
& Products).......................... 57,800 560,660
------------
THAILAND (3.4%)
BEC World Public Co. Ltd. (NVDR)
(Media).............................. 125,800 727,017
*Big C Supercenter Public Co. Ltd.
(NVDR) (Food & Drug Retailing)....... 2,815,000 1,416,697
*Land & Houses Public Co. Ltd. (NVDR)
(Durables)........................... 520,700 940,375
*Siam Commercial Bank (Foreign)
(Banks).............................. 519,000 365,549
*Srithai Superware Public Co. Ltd.
(NVDR) (Household Durables).......... 3,500,000 678,448
Thai Fund, Inc. (Diversified
Financials).......................... 37,100 172,886
*Tipco Asphalt Public Co. Ltd. (NVDR)
(Construction Materials)............. 556,000 502,063
------------
4,803,035
------------
UNITED KINGDOM (19.2%)
BAE Systems plc (Aerospace &
Defense)............................. 246,000 1,256,194
Barclays plc (Banks)................... 242,956 2,044,292
BP plc, ADR (Oil & Gas)................ 36,200 1,827,738
See Accompanying Notes to Financial Statements
47
SCHEDULE OF INVESTMENTS
--------------------------------------------------------------------------------
[Download Table]
COLUMBIA INTERNATIONAL STOCK FUND (CONT.)
JUNE 30, 2002 (UNAUDITED) SHARES VALUE
----------------------------------------------------------------------
Capita Group plc (Commercial Services &
Supplies)............................ 171,700 $ 816,585
Centrica plc (Gas Utilities)........... 445,800 1,379,470
Compass Group plc (Hotels, Restaurants
& Leisure)........................... 134,235 814,376
Diageo plc (Beverages)................. 96,100 1,248,071
*easyJet plc (Airlines)................ 136,927 778,717
Exel plc (Air Freight & Couriers)...... 81,600 1,039,233
GlaxoSmithKline plc
(Pharmaceuticals).................... 41,926 906,225
Legal & General Group plc
(Insurance).......................... 618,300 1,232,302
National Grid Group plc (Electric
Utilities)........................... 144,100 1,023,590
Next plc (Multiline Retail)............ 57,000 809,780
*Powderject Pharmaceuticals plc
(Biotechnology)...................... 111,500 713,839
Reckitt Benckiser plc (Household
Products)............................ 61,400 1,101,593
Rio Tinto plc (Metals & Mining)........ 52,800 968,224
Royal Bank of Scotland Group plc
(Banks) ............................. 76,217 2,160,932
*Shire Pharmaceuticals Group plc
(Pharmaceuticals).................... 99,200 877,033
Smith & Nephew plc (Health Care
Equipment & Supplies)................ 259,200 1,438,178
Smiths Group plc (Industrial
Conglomerates)....................... 82,900 1,076,640
Standard Chartered plc (Banks)......... 82,600 881,362
Tesco plc (Food & Drug Retailing)...... 246,400 895,788
Vodafone Group plc (Wireless
Telecommunication Services).......... 819,200 1,123,851
WPP Group plc (Media).................. 91,600 773,538
------------
27,187,551
------------
UNITED STATES (0.5%)
*Resmed, Inc. (Health Care Equipment &
Supplies)............................ 24,500 720,300
------------
Total Common Stocks
(Cost $124,832,978)...................... 129,329,576
------------
PREFERRED STOCK (0.8%)
GERMANY
Wella AG (Personal Products)
(Cost $920,407)...................... 18,850 1,119,796
------------
[Download Table]
----------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
REPURCHASE AGREEMENT (3.5%)
J.P. Morgan Securities, Inc.
1.85% dated 06/28/2002, due
07/01/2002 in the amount of
$4,918,005. Collateralized by U.S.
Treasury Bills due 07/05/2002 to
11/29/2014, U.S. Treasury Strips due
02/15/2010 to 08/15/2028
(Cost $4,917,256).................... $4,917,256 $ 4,917,256
------------
TOTAL INVESTMENTS (95.6%)
(Cost $130,670,641)...................... 135,366,628
OTHER ASSETS LESS LIABILITIES (4.4%)...... 6,254,376
------------
NET ASSETS (100%)......................... $141,621,004
============
* Non-income producing
[Download Table]
% OF NET
SECTOR DIVERSIFICATION ASSETS VALUE
----------------------------------------------------------------------
COMMON/PREFERRED STOCKS
Consumer Discretionary.................. 18.9% $ 26,728,042
Industrials............................. 14.8 20,984,336
Financials.............................. 14.8 20,892,599
Information Technology.................. 10.3 14,605,074
Consumer Staples........................ 9.2 12,999,524
Health Care............................. 8.2 11,678,164
Materials............................... 7.9 11,190,001
Energy.................................. 4.4 6,230,247
Telecommunication Services.............. 1.9 2,738,324
Utilities............................... 1.7 2,403,061
----- --------------
TOTAL COMMON/PREFERRED STOCKS............ 92.1 130,449,372
REPURCHASE AGREEMENT..................... 3.5 4,917,256
----- --------------
TOTAL INVESTMENTS........................ 95.6 135,366,628
OTHER ASSETS LESS LIABILITIES............ 4.4 6,254,376
----- --------------
NET ASSETS............................... 100.0% $ 141,621,004
===== ==============
[Download Table]
COLUMBIA SPECIAL FUND
JUNE 30, 2002 (UNAUDITED) SHARES VALUE
----------------------------------------------------------------------
COMMON STOCKS (87.2%)
ADVERTISING AGENCIES (1.2%)
*Valassis Communications, Inc. ....... 226,500 $ 8,267,250
------------
AUTO TRUCKS & PARTS (1.1%)
*Gentex Corp. ........................ 277,300 7,617,431
------------
See Accompanying Notes to Financial Statements
48
SCHEDULE OF INVESTMENTS
--------------------------------------------------------------------------------
[Download Table]
SHARES VALUE
----------------------------------------------------------------------
BANKS (2.0%)
Investors Financial Services Corp. ... 189,200 $ 6,345,768
M & T Bank Corp. ..................... 82,980 7,116,365
------------
13,462,133
------------
BIOTECH RESEARCH & PRODUCTS (0.5%)
*Genentech, Inc. ..................... 103,230 3,458,205
------------
BUILDING MATERIALS (1.3%)
Martin Marietta Materials, Inc. ...... 222,300 8,669,700
------------
CASINOS & GAMBLING (0.8%)
*Harrah's Entertainment, Inc. ........ 124,700 5,530,445
------------
CHEMICALS (0.8%)
OM Group, Inc. ....................... 81,800 5,071,600
------------
COMMUNICATIONS TECHNOLOGY (1.2%)
*Networks Associates, Inc. ........... 173,200 3,337,564
*UTStarcom, Inc. ..................... 225,600 4,550,352
------------
7,887,916
------------
COMPUTER SERVICES SOFTWARE & SYSTEMS (4.9%)
*Intuit, Inc. ........................ 425,300 21,145,916
*Mercury Interactive Corp. ........... 190,200 4,366,992
*QLogic Corp. ........................ 82,920 3,159,252
*Rational Software Corp. ............. 554,500 4,552,445
------------
33,224,605
------------
COMPUTER TECHNOLOGY (1.2%)
*Synopsys, Inc........................ 141,700 7,766,577
------------
CONSUMER ELECTRONICS (1.7%)
*Electronic Arts, Inc................. 174,700 11,538,935
------------
COSMETICS (0.7%)
Lauder, Estee Companies, Inc., The
(Class A)........................... 141,600 4,984,320
------------
DRUGS & PHARMACEUTICALS (4.0%)
AmerisourceBergen Corp. .............. 65,600 4,985,600
*ANDRX Group.......................... 90,200 2,432,694
*Barr Laboratories, Inc. ............. 55,400 3,519,562
*Gilead Sciences, Inc. ............... 109,000 3,583,920
*MedImmune, Inc. ..................... 329,200 8,690,880
Teva Pharmaceutical Industries Ltd.
ADR................................. 55,600 3,712,968
------------
26,925,624
------------
EDUCATION SERVICES (1.1%)
*Apollo Group, Inc. (Class A)......... 182,025 7,173,605
------------
[Download Table]
----------------------------------------------------------------------
SHARES VALUE
ELECTRONICS: SEMICONDUCTORS (3.0%)
*Atmel Corp. ......................... 809,100 $ 5,064,966
*Intersil Corp. (Class A)............. 83,900 1,793,782
*Microchip Technology, Inc. .......... 124,500 3,415,035
*Micron Technology, Inc. ............. 85,700 1,732,854
*National Semiconductor Corp. ........ 306,900 8,952,273
------------
20,958,910
------------
FINANCIAL DATA PROCESSING SERVICES (0.8%)
*DST Systems, Inc. ................... 35,900 1,640,989
*SunGard Data Systems, Inc. .......... 127,520 3,376,730
------------
5,017,719
------------
FINANCIAL INFORMATION SERVICES (1.6%)
Moody's Corp. ........................ 222,700 11,079,325
------------
HEALTH CARE FACILITIES (8.4%)
*DaVita, Inc. ........................ 140,800 3,351,040
HCA, Inc. ............................ 458,700 21,788,250
*HEALTHSOUTH Corp. ................... 1,217,700 15,574,383
*Laboratory Corporation of America
Holdings............................ 342,840 15,650,646
------------
56,364,319
------------
HEALTH CARE MANAGEMENT SERVICES (8.4%)
*AdvancePCS (Class A)................. 123,300 2,951,802
Aetna, Inc. .......................... 88,500 4,245,345
*Caremark Rx, Inc. ................... 1,077,900 17,785,350
*Community Health Systems, Inc. ...... 130,080 3,486,144
UnitedHealth Group, Inc. ............. 40,900 3,744,395
*Universal Health Services, Inc.
(Class B)........................... 80,100 3,924,900
*WellPoint Health Networks, Inc. ..... 263,700 20,518,497
------------
56,656,433
------------
HEALTH CARE SERVICES (1.9%)
*Express Scripts, Inc. ............... 168,800 8,458,568
McKesson Corp. ....................... 131,600 4,303,320
------------
12,761,888
------------
IDENTIFICATION CONTROL (1.0%)
Pall Corp. ........................... 337,200 6,996,900
------------
INSURANCE: LIFE (1.1%)
*Anthem, Inc. ........................ 110,400 7,421,088
------------
INSURANCE: MULTI-LINE (0.8%)
Stancorp Financial Group, Inc. ....... 90,800 5,039,400
------------
INSURANCE: PROPERTY & CASUALTY (0.5%)
Everest Re Group, Ltd. ............... 59,800 3,345,810
------------
See Accompanying Notes to Financial Statements
49
SCHEDULE OF INVESTMENTS
--------------------------------------------------------------------------------
[Download Table]
COLUMBIA SPECIAL FUND (CONT.)
JUNE 30, 2002 (UNAUDITED) SHARES VALUE
----------------------------------------------------------------------
MACHINERY: OIL WELL EQUIPMENT & SERVICES (3.1%)
*Nabors Industries, Inc. ............. 180,800 $ 6,355,120
*National-Oilwell, Inc. .............. 106,600 2,243,930
*Noble Corp. ......................... 223,500 8,627,100
*Patterson-UTI Energy, Inc. .......... 115,500 3,260,565
------------
20,486,715
------------
MEDICAL & DENTAL SUPPLIES (2.4%)
Biomet, Inc. ......................... 384,800 10,435,776
*Boston Scientific Corp. ............. 196,300 5,755,516
------------
16,191,292
------------
MISCELLANEOUS EQUIPMENT (0.9%)
Grainger, W.W., Inc. ................. 119,960 6,009,996
------------
MULTI-SECTOR COMPANIES (0.7%)
Eaton Corp. .......................... 66,800 4,859,700
------------
OIL: CRUDE PRODUCERS (1.0%)
Burlington Resources, Inc. ........... 170,000 6,460,000
------------
PRODUCTION TECHNOLOGY EQUIPMENT (3.1%)
*ASML Holding NV...................... 241,000 3,643,920
*Novellus Systems, Inc. .............. 145,400 4,943,600
*Taiwan Semiconductor Manufacturing
Company Ltd. ADR.................... 523,358 6,803,654
*United Microelectronics Corp. ADR.... 707,070 5,196,964
------------
20,588,138
------------
PUBLISHING: NEWSPAPERS (1.0%)
Knight Ridder, Inc. .................. 111,600 7,025,220
------------
RADIO & TELEVISION BROADCASTERS (6.2%)
*Cox Radio, Inc. (Class A)............ 340,400 8,203,640
*Hispanic Broadcasting Corp........... 427,700 11,162,970
*Radio One, Inc. (Class D)............ 348,000 5,174,760
*Univision Communications, Inc. (Class
A).................................. 278,900 8,757,460
*Westwood One, Inc. .................. 248,500 8,304,870
------------
41,603,700
------------
RAILROADS (0.9%)
CSX Corp. ............................ 171,300 6,004,065
------------
RESTAURANTS (4.1%)
*Brinker International, Inc. ......... 435,190 13,817,282
*Outback Steakhouse, Inc. ............ 209,900 7,367,490
*Yum! Brands, Inc. ................... 217,800 6,370,650
------------
27,555,422
------------
[Download Table]
----------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
RETAIL (6.9%)
*Abercrombie & Fitch Co. (Class A).... 173,100 $ 4,175,172
Circuit City Group.................... 155,800 2,921,250
*Costco Wholesale Corp. .............. 192,000 7,415,040
*Dollar Tree Stores, Inc. ............ 220,240 8,679,658
Gap, Inc., The........................ 841,300 11,946,460
Limited Brands, Inc. ................. 193,620 4,124,106
Nordstrom, Inc. ...................... 51,500 1,166,475
Talbots, Inc., The.................... 175,000 6,125,000
------------
46,553,161
------------
SERVICES: COMMERCIAL (4.3%)
*ChoicePoint, Inc. ................... 244,040 11,096,499
*Hewitt Associates, Inc. (Class A).... 92,086 2,145,604
*Republic Services, Inc. ............. 225,560 4,301,429
*Robert Half International, Inc. ..... 304,000 7,083,200
*Weight Watchers International,
Inc. ............................... 97,700 4,244,088
------------
28,870,820
------------
SOAPS & HOUSEHOLD CHEMICALS (1.0%)
Dial Corp., The....................... 345,330 6,913,507
------------
TELECOMMUNICATION EQUIPMENT (0.4%)
*Polycom, Inc. ....................... 249,900 2,996,301
------------
TOYS (1.2%)
Mattel, Inc. ......................... 393,690 8,271,427
------------
Total Common Stocks
(Cost $545,007,716)..................... 587,609,602
------------
REPURCHASE AGREEMENTS (13.6%)
J.P. Morgan Securities, Inc. 1.85%
dated 06/28/2002, due 07/01/2002 in
the amount of $56,234,614.
Collateralized by U.S. Treasury
Bills due 07/05/2002 to 11/29/2014
U.S. Treasury Strips due 02/15/2010
to 08/15/2028....................... $56,226,054 56,226,054
Merrill Lynch 1.80% dated 06/28/2002,
due 07/01/2002 in the amount of
$35,005,178. Collateralized by U.S.
Treasury Strips due 08/15/2012 to
08/15/2017.......................... 35,000,000 35,000,000
------------
Total Repurchase Agreements
(Cost $91,226,054)...................... 91,226,054
------------
TOTAL INVESTMENTS (100.8%)
(Cost $636,233,770)..................... 678,835,656
OTHER ASSETS LESS LIABILITIES (-0.8%).... (5,223,238)
------------
NET ASSETS (100.0%)...................... $673,612,418
============
* Non-income producing
See Accompanying Notes to Financial Statements
50
SCHEDULE OF INVESTMENTS
--------------------------------------------------------------------------------
[Download Table]
COLUMBIA SMALL CAP FUND
JUNE 30, 2002 (UNAUDITED) SHARES VALUE
-----------------------------------------------------------------------
COMMON STOCKS (93.4%)
ADVERTISING AGENCIES (1.8%)
*Lamar Advertising Co. ........... 309,212 $ 11,505,778
---------------
AIR TRANSPORT (0.2%)
*Atlantic Coast Airlines Holdings,
Inc. ........................... 53,219 1,154,852
SkyWest, Inc. .................... 5,100 119,289
---------------
1,274,141
---------------
AUTO PARTS: ORIGINAL EQUIPMENT (1.8%)
Autoliv, Inc. .................... 258,800 6,521,760
*Tower Automotive, Inc. .......... 336,900 4,699,755
---------------
11,221,515
---------------
AUTO TRUCKS & PARTS (0.8%)
*Gentex Corp. .................... 194,100 5,331,927
---------------
BANKS (0.5%)
Greater Bay Bancorp............... 110,400 3,395,904
---------------
BIOTECH RESEARCH & PRODUCTS (3.0%)
*Integra LifeSciences Holdings
Corp. .......................... 369,475 8,036,081
*Neurocrine Biosciences, Inc. .... 200,455 5,743,036
*Transkaryotic Therapies, Inc. ... 52,318 1,886,064
*Trimeris, Inc. .................. 77,800 3,453,542
---------------
19,118,723
---------------
CHEMICALS (1.5%)
OM Group, Inc. ................... 74,600 4,625,200
*Wilson Greatbatch Technologies,
Inc. ........................... 190,110 4,844,003
---------------
9,469,203
---------------
COMMUNICATIONS & MEDIA (0.2%)
*Entravision Communications Corp.
(Class A)....................... 123,000 1,506,750
---------------
COMPUTER SERVICES SOFTWARE & SYSTEMS (6.4%)
*Acxiom Corp. .................... 260,300 4,552,647
*Anteon International Corp. ...... 70,500 1,782,240
*Concurrent Computer Corp. ....... 35,200 163,680
*Documentum, Inc. ................ 225,231 2,702,772
*Electronics for Imaging, Inc. ... 78,220 1,244,480
*HPL Technologies, Inc. .......... 348,200 5,243,892
*Manhattan Associates, Inc. ...... 97,374 3,131,548
*Mentor Graphics Corp. ........... 219,650 3,123,423
*National Instruments Corp. ...... 84,260 2,743,506
*NetIQ Corp. ..................... 150,052 3,395,677
*Precise Software Solutions
Ltd. ........................... 380,364 3,632,476
*Rational Software Corp. ......... 362,100 2,972,841
[Download Table]
-----------------------------------------------------------------------
SHARES VALUE
*Retek, Inc. ..................... 200,701 $ 4,877,034
*SRA International, Inc. (Class
A).............................. 10,100 272,498
*TriZetto Group, Inc. ............ 85,400 730,170
---------------
40,568,884
---------------
COMPUTER TECHNOLOGY (0.1%)
*Computer Network Technology
Corp. .......................... 115,002 704,962
---------------
CONSTRUCTION (0.6%)
Granite Construction, Inc. ....... 161,000 4,073,300
---------------
CONSUMER ELECTRONICS (1.9%)
Harman International Industries,
Inc. ........................... 126,500 6,230,125
*THQ, Inc. ....................... 191,775 5,718,730
---------------
11,948,855
---------------
CONSUMER PRODUCTS (0.7%)
*Oakley, Inc. .................... 255,600 4,473,000
---------------
DIVERSIFIED FINANCIAL SERVICES (1.4%)
*Willis Group Holdings Ltd. ...... 271,149 8,923,514
---------------
DRUGS & PHARMACEUTICALS (3.9%)
*Alkermes, Inc. .................. 266,161 4,261,238
*American Pharmaceutical Partners,
Inc. ........................... 239,900 2,965,164
*First Horizon Pharmaceutical
Corp. .......................... 369,114 7,636,969
*Guilford Pharmaceuticals,
Inc. ........................... 158,965 1,198,596
*Medicis Pharmaceutical Corp.
(Class A)....................... 78,330 3,349,391
*Pharmaceutical Resources,
Inc. ........................... 192,871 5,357,956
---------------
24,769,314
---------------
EDUCATION SERVICES (5.0%)
*Career Education Corp. .......... 85,170 3,832,650
*Corinthian Colleges, Inc. ....... 140,800 4,771,712
*Education Management Corp. ...... 202,471 8,246,644
*ITT Educational Services,
Inc. ........................... 195,996 4,272,713
*Sylvan Learning Systems, Inc. ... 521,401 10,396,736
---------------
31,520,455
---------------
ELECTRONICS (1.3%)
*Amphenol Corp. (Class A)......... 229,655 8,267,580
---------------
ELECTRONICS: EQUIPMENT & COMPONENTS (0.4%)
*MKS Instruments, Inc. ........... 16,900 339,183
*Power-One, Inc. ................. 388,090 2,413,920
---------------
2,753,103
---------------
ELECTRONICS: MEDICAL SYSTEMS (0.7%)
*CTI Molecular Imaging, Inc. ..... 33,500 768,490
*TheraSense, Inc. ................ 186,988 3,448,059
---------------
4,216,549
---------------
ELECTRONICS: SEMICONDUCTORS (0.2%)
*Lattice Semiconductor Corp. ..... 180,046 1,573,602
---------------
See Accompanying Notes to Financial Statements
51
SCHEDULE OF INVESTMENTS
--------------------------------------------------------------------------------
[Download Table]
COLUMBIA SMALL CAP FUND (CONT.)
JUNE 30, 2002 (UNAUDITED) SHARES VALUE
-----------------------------------------------------------------------
ENGINEERING & CONTRACT SERVICES (1.4%)
*Jacobs Engineering Group,
Inc. ........................... 128,908 $ 4,483,420
*URS Corp. ....................... 149,340 4,151,652
---------------
8,635,072
---------------
FINANCIAL DATA PROCESSING SERVICES (1.2%)
*Alliance Data Systems Corp. ..... 188,350 4,812,342
Global Payments, Inc. ............ 102,536 3,061,725
---------------
7,874,067
---------------
FOODS (0.8%)
*Chiquita Brands International,
Inc. ........................... 271,500 4,862,565
---------------
FOREST PRODUCTS (0.6%)
Louisiana-Pacific Corp. .......... 376,400 3,982,312
---------------
HEALTH CARE FACILITIES (2.3%)
*DaVita, Inc. .................... 625,631 14,890,018
---------------
HEALTH CARE MANAGEMENT SERVICES (8.2%)
*Caremark Rx, Inc. ............... 840,822 13,873,563
*Cerner Corp. .................... 105,193 5,031,381
*First Health Group Corp. ........ 496,956 13,934,646
*Mid Atlantic Medical Services,
Inc. ........................... 284,000 8,903,400
*Trigon Healthcare, Inc. ......... 101,768 10,235,825
---------------
51,978,815
---------------
HEALTH CARE SERVICES (1.8%)
*Express Scripts, Inc. ........... 155,840 7,809,142
*Stericycle, Inc. ................ 101,312 3,587,458
---------------
11,396,600
---------------
HOMEBUILDING (1.5%)
D.R. Horton, Inc. ................ 298,968 7,782,137
Standard Pacific Corp. ........... 54,300 1,904,844
---------------
9,686,981
---------------
IDENTIFICATION CONTROL (1.4%)
*Advanced Energy Industries,
Inc. ........................... 125,500 2,783,590
*Flowserve Corp. ................. 108,800 3,242,240
Roper Industries, Inc. ........... 84,800 3,163,040
---------------
9,188,870
---------------
INSURANCE: LIFE (0.8%)
Scottish Annuity & Life Holdings,
Ltd. ........................... 268,700 5,126,796
---------------
INSURANCE: MULTI-LINE (0.2%)
PartnerRe Ltd. ................... 30,078 1,472,318
---------------
[Download Table]
-----------------------------------------------------------------------
SHARES VALUE
INSURANCE: PROPERTY-CASUALTY (0.6%)
IPC Holdings Ltd. ................ 111,910 $ 3,417,731
Odyssey Re Holdings Corp. ........ 19,600 340,844
---------------
3,758,575
---------------
MACHINERY: CONSTRUCTION & HANDLING (0.5%)
*Terex Corp. ..................... 146,600 3,297,034
---------------
MACHINERY: OIL WELL EQUIPMENT & SERVICES (2.6%)
*Cal Dive International, Inc. .... 145,800 3,207,600
*Global Industries Ltd. .......... 239,838 1,676,468
*National-Oilwell, Inc. .......... 193,000 4,062,650
*Newpark Resources, Inc. ......... 236,300 1,736,805
*Oceaneering International,
Inc. ........................... 46,000 1,219,000
*Varco International, Inc. ....... 250,000 4,385,000
---------------
16,287,523
---------------
MANUFACTURED HOUSING (0.8%)
Clayton Homes, Inc. .............. 322,294 5,092,245
---------------
MEDICAL & DENTAL SUPPLIES (4.7%)
*American Medical Systems
Holdings, Inc. ................. 367,648 7,375,019
*Kyphon, Inc. .................... 184,600 2,691,468
*Orthofix International NV ....... 84,700 2,977,205
*Schein, Henry, Inc. ............. 179,151 7,972,220
*Thoratec Corp. .................. 184,500 1,658,655
*Urologix, Inc. .................. 229,360 2,933,514
*Wright Medical Group, Inc. ...... 216,900 4,372,704
---------------
29,980,785
---------------
MEDICAL SERVICES (1.0%)
*AMN Healthcare Services, Inc. ... 178,100 6,235,281
---------------
METAL FABRICATING (0.2%)
*Lone Star Technologies, Inc. .... 64,300 1,472,470
---------------
METALS & MINERALS MISCELLANEOUS (0.8%)
Minerals Technologies, Inc. ...... 97,600 4,813,632
---------------
OFFSHORE DRILLING (0.5%)
*Precision Drilling Corp. ........ 91,900 3,192,606
---------------
OIL: CRUDE PRODUCERS (1.7%)
*Grey Wolf, Inc. ................. 509,800 2,069,788
Patina Oil & Gas Corp. ........... 125,625 3,444,637
XTO Energy, Inc. ................. 251,400 5,178,840
---------------
10,693,265
---------------
PAPER (0.5%)
Albany International Corp. ....... 127,700 3,436,407
---------------
PLASTICS (1.2%)
Spartech Corp. ................... 277,200 7,548,156
---------------
See Accompanying Notes to Financial Statements
52
SCHEDULE OF INVESTMENTS
--------------------------------------------------------------------------------
[Download Table]
SHARES VALUE
-----------------------------------------------------------------------
PRODUCTION TECHNOLOGY EQUIPMENT (5.6%)
*ASE Test Ltd. ................... 291,668 $ 2,829,180
*ASM International NV ............ 143,762 2,481,332
*Brooks-PRI Automation, Inc. ..... 87,861 2,245,727
*Credence Systems Corp. .......... 341,695 6,071,920
*Cymer, Inc. ..................... 86,700 3,037,968
*Electro Scientific Industries,
Inc. ........................... 79,000 1,919,700
*FEI Co. ......................... 103,100 2,526,981
*Photon Dynamics, Inc. ........... 140,004 4,200,120
*Photronics, Inc. ................ 179,186 3,393,783
*Rudolph Technologies, Inc. ...... 115,861 2,888,415
*Ultratech Stepper, Inc. ......... 265,764 4,302,719
---------------
35,897,845
---------------
RADIO & TELEVISION BROADCASTERS (3.4%)
*Entercom Communications Corp. ... 251,100 11,525,490
*LIN TV Corp. (Class A) .......... 111,750 3,021,720
*Radio One, Inc. (Class D) ....... 458,902 6,823,873
---------------
21,371,083
---------------
REAL ESTATE INVESTMENT TRUSTS (REITS) (1.3%)
Health Care Property Investors,
Inc. ........................... 75,542 3,240,752
Healthcare Realty Trust, Inc. .... 162,300 5,193,600
---------------
8,434,352
---------------
RESTAURANTS (0.8%)
*Outback Steakhouse, Inc. ........ 139,872 4,909,507
---------------
RETAIL (8.9%)
*Abercrombie & Fitch Co. (Class
A).............................. 164,052 3,956,934
*American Eagle Outfitters,
Inc. ........................... 147,200 3,111,808
*Charlotte Russe Holding, Inc. ... 110,000 2,456,300
*Cost Plus, Inc. ................. 144,121 4,389,782
*GameStop Corp. .................. 195,300 4,099,347
*Linens 'n Things, Inc. .......... 40,000 1,312,400
*Lithia Motors, Inc. (Class A).... 93,000 2,503,560
*Michaels Stores, Inc. ........... 191,675 7,475,325
*O'Reilly Automotive, Inc. ....... 228,792 6,305,508
*Pacific Sunwear of California,
Inc. ........................... 297,500 6,595,575
*Petco Animal Supplies, Inc. ..... 28,800 717,408
Talbots, Inc., The................ 140,599 4,920,965
*Zale Corp. ...................... 246,739 9,030,647
---------------
56,875,559
---------------
SERVICES: COMMERCIAL (2.1%)
*Corporate Executive Board Co.,
The............................. 223,260 7,646,655
*On Assignment, Inc. ............. 156,182 2,780,040
*Resources Connection, Inc. ...... 104,700 2,825,853
---------------
13,252,548
---------------
SHOES (0.8%)
*Reebok International Ltd. ....... 182,000 5,369,000
---------------
[Download Table]
-----------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
TRUCKERS (2.8%)
*Hunt, J.B. Transport Services,
Inc. ........................... 147,400 $ 4,351,248
*Swift Transportation Co.,
Inc. ........................... 176,400 4,110,120
USFreightways Corp. .............. 102,356 3,876,222
*Yellow Corp. .................... 175,080 5,672,592
---------------
18,010,182
---------------
Total Common Stocks
(Cost $567,963,042)................. 595,639,528
---------------
REPURCHASE AGREEMENT (5.4%)
J.P. Morgan Securities, Inc.
1.85% dated 06/28/2002, due
07/01/2002 in the amount of
$34,529,587. Collateralized by
U.S. Treasury Bills due
07/05/2002 to 11/29/2014 U.S.
Treasury Strips due 02/15/2010
to 08/15/2028 (Cost
$34,524,331).................... $ 34,524,331 34,524,331
---------------
TOTAL INVESTMENTS (98.8%)
(Cost $602,487,373)................. 630,163,859
OTHER ASSETS LESS LIABILITIES
(1.2%).............................. 7,489,175
---------------
NET ASSETS (100.0%).................. $ 637,653,034
===============
* Non-income producing
[Download Table]
COLUMBIA REAL ESTATE EQUITY FUND
JUNE 30, 2002 (UNAUDITED) SHARES VALUE
-----------------------------------------------------------------------
COMMON STOCKS (95.9%)
FOREST PRODUCTS (1.4%)
Weyerhaeuser Co. ................. 178,000 $ 11,365,300
---------------
HOTEL/MOTEL (0.9%)
Starwood Hotels & Resorts
Worldwide, Inc. ................ 219,600 7,222,644
---------------
PAPER (4.9%)
Bowater, Inc. .................... 310,600 16,887,322
International Paper Co. .......... 542,100 23,624,718
---------------
40,512,040
---------------
REAL ESTATE INVESTMENT TRUSTS (REITS) (88.7%)
APARTMENTS (14.6%)
Apartment Investment &
Management Co. (Class A)...... 596,500 29,347,800
Archstone-Smith Trust........... 772,571 20,627,646
AvalonBay Communities, Inc. .... 499,600 23,331,320
Camden Property Trust........... 388,550 14,388,007
See Accompanying Notes to Financial Statements
53
SCHEDULE OF INVESTMENTS
--------------------------------------------------------------------------------
[Download Table]
COLUMBIA REAL ESTATE EQUITY FUND (CONT.)
JUNE 30, 2002 (UNAUDITED) SHARES VALUE
-----------------------------------------------------------------------
Equity Residential.............. 608,506 $ 17,494,547
United Dominion Realty Trust,
Inc. ......................... 1,008,400 15,882,300
---------------
121,071,620
---------------
COMMUNITY CENTERS (8.8%)
Kimco Realty Corp. ............. 539,500 18,067,855
Pan Pacific Retail Properties,
Inc. ......................... 287,800 9,693,104
Vornado Realty Trust............ 980,000 45,080,000
---------------
72,840,959
---------------
INDUSTRIAL (20.2%)
Alexandria Real Estate Equities,
Inc. ......................... 507,400 25,009,746
AMB Property Corp. ............. 481,700 14,932,700
CenterPoint Properties Trust.... 172,400 10,025,060
iStar Financial, Inc. .......... 1,402,550 39,972,675
Liberty Property Trust.......... 243,500 8,522,500
ProLogis........................ 1,731,606 45,021,756
Public Storage, Inc. ........... 640,432 23,760,027
---------------
167,244,464
---------------
LODGING (1.9%)
Host Marriott Corp. ............ 1,361,600 15,386,080
---------------
OFFICE (24.3%)
Boston Properties, Inc. ........ 574,800 22,963,260
CarrAmerica Realty Corp. ....... 946,100 29,187,185
Cousins Properties, Inc. ....... 1,564,950 38,748,162
Equity Office Properties
Trust......................... 1,616,437 48,654,754
Prentiss Properties Trust....... 260,700 8,277,225
Reckson Associates Realty
Corp. ........................ 952,600 23,719,740
Trizec Properties, Inc. ........ 1,754,300 29,577,498
---------------
201,127,824
---------------
OTHER (2.9%)
Plum Creek Timber Company,
Inc. ......................... 789,318 24,153,131
---------------
REAL ESTATE (2.1%)
St. Joe Co., The................ 587,200 17,627,744
---------------
SHOPPING MALLS (13.9%)
CBL & Associates Properties,
Inc. ......................... 401,400 16,256,700
Chelsea Property Group, Inc. ... 325,400 10,884,630
General Growth Properties,
Inc. ......................... 908,700 46,343,700
Simon Property Group, Inc. ..... 1,127,856 41,561,493
---------------
115,046,523
---------------
Total Common Stocks
(Cost $673,313,552)................. 793,598,329
---------------
[Download Table]
-----------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
REPURCHASE AGREEMENTS (5.5%)
J.P. Morgan Securities, Inc. 1.85%
dated 06/28/2002, due 07/01/2002
in the amount of $42,720,452.
Collateralized by U.S. Treasury
Bills due 07/05/2002 to
11/29/2014 U.S. Treasury Strips
due 02/15/2010 to 08/15/2028.... $ 42,713,949 $ 42,713,949
Merrill Lynch 1.80% dated
06/28/2002, due 07/01/2002 in
the amount of $3,000,444.
Collateralized by U.S. Treasury
Strips due 08/15/2012 to
08/15/2017...................... 3,000,000 3,000,000
---------------
Total Repurchase Agreements
(Cost $45,713,949).................. 45,713,949
---------------
TOTAL INVESTMENTS (101.4%)
(Cost $719,027,501)................. 839,312,278
OTHER ASSETS LESS LIABILITIES
(-1.4%)............................. (11,333,312)
---------------
NET ASSETS (100%).................... $ 827,978,966
===============
* Non-income producing
[Download Table]
COLUMBIA TECHNOLOGY FUND
JUNE 30, 2002 (UNAUDITED) SHARES VALUE
-----------------------------------------------------------------------
COMMON STOCKS (82.6%)
AEROSPACE (1.1%)
*Moog, Inc. (Class A)............. 2,500 $ 107,200
---------------
AUTO PARTS: ORIGINAL EQUIPMENT (0.7%)
Autoliv, Inc. .................... 2,600 65,520
---------------
BIOTECH RESEARCH & PRODUCTS (0.5%)
*Neurocrine Biosciences, Inc. .... 1,700 48,705
---------------
COMMUNICATIONS TECHNOLOGY (3.8%)
*Advanced Fibre Communications,
Inc. ........................... 8,950 148,033
*Brocade Communications Systems,
Inc. ........................... 2,500 43,700
*UTStarcom, Inc. ................. 8,900 179,513
---------------
371,246
---------------
COMPUTER SERVICES SOFTWARE & SYSTEMS (16.7%)
*Actel Corp. ..................... 5,900 124,018
*Acxiom Corp. .................... 4,900 85,701
*Anteon International Corp. ...... 5,900 149,152
Autodesk, Inc. ................... 4,480 59,360
See Accompanying Notes to Financial Statements
54
SCHEDULE OF INVESTMENTS
--------------------------------------------------------------------------------
[Download Table]
SHARES VALUE
-----------------------------------------------------------------------
*BMC Software, Inc. .............. 13,920 $ 231,072
*Documentum, Inc. ................ 3,150 37,800
*HPL Technologies, Inc. .......... 11,200 168,672
*Intuit, Inc. .................... 5,090 253,075
*Manhattan Associates, Inc. ...... 3,200 102,912
*Mentor Graphics Corp. ........... 5,000 71,100
*Mercury Interactive Corp. ....... 2,640 60,614
*Microsoft Corp. ................. 560 30,632
*Pinnacle Systems, Inc. .......... 10,400 114,286
*QLogic Corp. .................... 1,600 60,960
*Rational Software Corp. ......... 6,795 55,787
*VERITAS Software Corp. .......... 2,000 39,580
---------------
1,644,721
---------------
COMPUTER TECHNOLOGY (1.8%)
*Apple Computer, Inc. ............ 2,700 47,844
*Computer Network Technology
Corp. .......................... 6,200 38,006
*NVIDIA Corp. .................... 2,260 38,827
*Sun Microsystems, Inc. .......... 9,800 49,098
---------------
173,775
---------------
CONSUMER ELECTRONICS (4.5%)
*Electronic Arts, Inc. ........... 4,940 326,287
*THQ, Inc. ....................... 3,790 113,018
---------------
439,305
---------------
ELECTRONICS (5.4%)
*Amphenol Corp. (Class A)......... 5,630 202,680
Samsung Electronics Co., Ltd. GDR
(144A).......................... 1,000 137,300
*Semtech Corp. ................... 7,070 188,769
---------------
528,749
---------------
ELECTRONICS: EQUIPMENT & COMPONENTS (1.1%)
*Power-One, Inc. ................. 17,710 110,156
---------------
ELECTRONICS: SEMICONDUCTORS (16.1%)
*Analog Devices, Inc. ............ 5,700 169,290
*Atmel Corp. ..................... 19,520 122,195
*Broadcom Corp. (Class A)......... 2,400 42,096
*Celestica, Inc. ................. 2,280 51,779
*Fairchild Semiconductor
International, Inc. (Class A)... 4,800 116,640
*Integrated Circuit Systems,
Inc............................. 12,040 243,088
*Intersil Corp. (Class A)......... 2,390 51,098
*Maxim Integrated Products,
Inc. ........................... 3,000 114,990
*Microchip Technology, Inc. ...... 9,200 252,356
*Micron Technology, Inc. ......... 4,430 89,574
[Download Table]
-----------------------------------------------------------------------
SHARES VALUE
*National Semiconductor Corp. .... 6,000 $ 175,020
*Silicon Laboratories, Inc. ...... 3,100 83,886
*Xilinx, Inc. .................... 3,100 69,533
---------------
1,581,545
---------------
ELECTRONICS: TECHNOLOGY (2.7%)
*Garmin Ltd. ..................... 5,000 110,250
Raytheon Co. ..................... 3,900 158,925
---------------
269,175
---------------
FINANCIAL DATA PROCESSING SERVICES (3.2%)
*Alliance Data Systems Corp. ..... 7,360 188,048
*DST Systems, Inc. ............... 2,700 123,417
---------------
311,465
---------------
FINANCIAL INFORMATION SERVICES (1.2%)
*S1 Corp. ........................ 16,700 123,413
---------------
MACHINERY: SPECIALTY (0.9%)
Engineered Support Systems,
Inc. ........................... 1,700 88,910
---------------
MEDICAL & DENTAL SUPPLIES (0.6%)
*Kyphon, Inc. .................... 4,000 58,320
---------------
PRODUCTION TECHNOLOGY EQUIPMENT (15.3%)
*ASE Test Ltd. ................... 4,730 45,881
*ASML Holding NV.................. 2,685 40,597
*Axcelis Technologies, Inc. ...... 8,950 102,746
*Credence Systems Corp. .......... 11,690 207,731
*Electro Scientific Industries,
Inc. ........................... 11,940 290,142
*Entegris, Inc. .................. 15,240 222,504
*FEI Co. ......................... 2,300 56,373
*Photon Dynamics, Inc. ........... 1,400 42,000
*Taiwan Semiconductor
Manufacturing Company Ltd. ADR.. 17,017 221,221
*United Microelectronics Corp.
ADR ............................ 37,970 279,080
---------------
1,508,275
---------------
RADIO & TELEVISION BROADCASTERS (2.0%)
*Cumulus Media, Inc............... 4,500 62,010
*Entercom Communications Corp..... 1,100 50,490
*Radio One, Inc. (Class D)........ 2,600 38,662
*Westwood One, Inc. .............. 1,500 50,130
---------------
201,292
---------------
RETAIL (0.5%)
*Amazon.com, Inc. ................ 3,000 48,750
---------------
SAVINGS & LOAN (0.2%)
*NetBank, Inc. ................... 1,900 22,135
---------------
See Accompanying Notes to Financial Statements
55
SCHEDULE OF INVESTMENTS
--------------------------------------------------------------------------------
[Download Table]
COLUMBIA TECHNOLOGY FUND (CONT.)
JUNE 30, 2002 (UNAUDITED) SHARES OR
PRINCIPAL
AMOUNT VALUE
-----------------------------------------------------------------------
SERVICES: COMMERCIAL (4.3%)
*Corporate Executive Board Co.,
The............................. 4,500 $ 154,125
*eBay, Inc. ...................... 4,400 271,128
---------------
425,253
---------------
Total Common Stocks
(Cost $8,922,394)................... 8,127,910
---------------
REPURCHASE AGREEMENTS (17.3%)
J.P. Morgan Securities, Inc.
1.85% dated 06/28/2002, due
07/01/2002 in the amount of
$1,013,872. Collateralized by
U.S. Treasury Bills due
07/05/2002 to 11/29/2014 U.S.
Treasury Strips due 02/15/2010
to 08/15/2028................... $ 1,013,718 1,013,718
Merrill Lynch
1.80% dated 06/28/2002, due
07/01/2002 in the amount of
$685,101. Collateralized by U.
S. Treasury Strips due
08/15/2012 to 08/15/2017........ 685,000 685,000
---------------
Total Repurchase Agreements
(Cost $1,698,718)................... 1,698,718
---------------
TOTAL INVESTMENTS (99.9%)
(Cost $10,621,112).................. 9,826,628
OTHER ASSETS LESS LIABILITIES
(0.1%).............................. 8,761
---------------
NET ASSETS (100.0%).................. $ 9,835,389
===============
* Non-income producing
[Download Table]
COLUMBIA STRATEGIC VALUE FUND
JUNE 30, 2002 (UNAUDITED) SHARES VALUE
-----------------------------------------------------------------------
COMMON STOCKS (74.3%)
AEROSPACE (0.1%)
Saab AB (Class B)................. 30,000 $ 383,562
---------------
AGRICULTURE, FISH & RANCH (0.3%)
Monsanto Co. ..................... 50,000 890,000
---------------
AIR TRANSPORT (0.5%)
Airborne, Inc. ................... 100,000 1,920,000
---------------
ALUMINUM (0.4%)
Alcan, Inc. ...................... 40,000 1,500,800
---------------
[Download Table]
-----------------------------------------------------------------------
SHARES VALUE
AUTO PARTS: ORIGINAL EQUIPMENT (0.7%)
Autoliv, Inc. .................... 40,000 $ 1,008,000
Sauer-Danfoss, Inc. .............. 107,500 1,221,200
---------------
2,229,200
---------------
AUTO TRUCKS & PARTS (0.9%)
Modine Manufacturing Co. ......... 125,000 3,072,500
---------------
AUTOMOBILES (0.6%)
General Motors Corp. ............. 20,000 1,069,000
Hyundai Motor Company Ltd. GDR.... 75,000 1,126,905
---------------
2,195,905
---------------
BANKS (4.9%)
Bank One Corp. ................... 40,000 1,539,200
*Columbia Banking System, Inc. ... 50,000 645,500
Glacier Bancorp, Inc. ............ 30,000 735,000
Huntington Bancshares, Inc. ...... 40,000 776,800
KeyCorp........................... 30,000 819,000
Kookmin Bank ADR.................. 40,000 1,966,000
Mitsubishi Tokyo Financial Group,
Inc. ADR........................ 125,000 850,000
PNC Financial Services Group...... 47,500 2,483,300
Provident Financial Group,
Inc. ........................... 62,500 1,813,125
U.S. Bancorp...................... 50,000 1,167,500
Wachovia Corp. ................... 100,000 3,818,000
---------------
16,613,425
---------------
BANKS: NEW YORK CITY (0.6%)
Bank of New York Company, Inc.,
The............................. 30,000 1,012,500
J.P. Morgan Chase & Co. .......... 30,000 1,017,600
---------------
2,030,100
---------------
BEVERAGE: BREWERS & WINERIES (0.2%)
Fomento Economico Mexicano SA de
CV ADR.......................... 20,000 784,400
---------------
BUILDING MATERIALS (0.3%)
Martin Marietta Materials,
Inc. ........................... 30,000 1,170,000
---------------
CHEMICALS (2.2%)
Calgon Carbon Corp. .............. 100,000 840,000
Dow Chemical Co. ................. 75,000 2,578,500
Dupont, E.I. de Nemours & Co. .... 30,000 1,332,000
*Hercules, Inc. .................. 100,000 1,192,000
Schulman, A., Inc. ............... 67,500 1,447,808
---------------
7,390,308
---------------
COMMUNICATIONS & MEDIA (0.3%)
*AOL Time Warner, Inc. ........... 50,000 735,500
*Gemstar-TV Guide International,
Inc. ........................... 30,000 161,700
---------------
897,200
---------------
See Accompanying Notes to Financial Statements
56
SCHEDULE OF INVESTMENTS
--------------------------------------------------------------------------------
[Download Table]
SHARES VALUE
-----------------------------------------------------------------------
COMMUNICATIONS TECHNOLOGY (0.8%)
Corning, Inc. .................... 50,000 $ 177,500
Motorola, Inc. ................... 100,000 1,442,000
Symbol Technologies, Inc. ........ 75,000 637,500
*Tellabs, Inc. ................... 50,000 316,000
---------------
2,573,000
---------------
COMPUTER SERVICES SOFTWARE & SYSTEMS (0.7%)
Adobe Systems, Inc. .............. 30,000 855,000
*CompuCom Systems, Inc. .......... 57,000 221,160
*Hypercom Corp. .................. 100,000 770,000
*Quovadx, Inc. ................... 75,000 471,000
---------------
2,317,160
---------------
COMPUTER TECHNOLOGY (0.7%)
Hewlett-Packard Co. .............. 40,000 611,200
*SanDisk Corp. ................... 100,000 1,240,000
*Sun Microsystems, Inc. .......... 175,000 876,750
---------------
2,727,950
---------------
CONSTRUCTION (0.9%)
Chicago Bridge & Iron Co. NV...... 67,500 1,902,825
*Washington Group International,
Inc. ........................... 50,000 1,100,000
---------------
3,002,825
---------------
CONSUMER PRODUCTS (1.6%)
International Flavors &
Fragrances, Inc. ............... 45,000 1,462,050
Kimberly-Clark Corp. ............. 40,000 2,480,000
Kimberly-Clark de Mexico SA de CV
ADR............................. 50,000 667,440
Orkla ASA......................... 40,000 772,920
---------------
5,382,410
---------------
CONTAINERS: PAPER & PLASTIC (1.0%)
Temple-Inland, Inc. .............. 57,500 3,326,950
---------------
COSMETICS (1.0%)
Lauder, Estee Companies, Inc., The
(Class A)....................... 97,500 3,432,000
---------------
DIVERSIFIED FINANCIAL SERVICES (0.8%)
Citigroup, Inc. .................. 40,000 1,550,000
John Hancock Financial Services,
Inc. ........................... 30,000 1,056,000
---------------
2,606,000
---------------
DRUGS & PHARMACEUTICALS (3.0%)
Abbott Laboratories............... 50,000 1,882,500
Bristol-Myers Squibb Co. ......... 50,000 1,285,000
Mylan Laboratories, Inc. ......... 62,500 1,959,375
[Download Table]
-----------------------------------------------------------------------
SHARES VALUE
Novartis AG ADR................... 40,000 $ 1,753,200
Pharmacia Corp. .................. 37,500 1,404,375
Schering AG ADR................... 20,000 1,270,000
Schering-Plough Corp. ............ 35,000 861,000
---------------
10,415,450
---------------
ELECTRONICS (1.2%)
Methode Electronics, Inc. (Class
A).............................. 150,000 1,915,500
Samsung Electronics Co., Ltd. GDR
(144A).......................... 15,000 2,059,500
---------------
3,975,000
---------------
ELECTRONICS: EQUIPMENT & COMPONENTS (0.9%)
Cooper Industries, Ltd. .......... 25,000 982,500
Emerson Electric Co. ............. 40,000 2,140,400
---------------
3,122,900
---------------
ELECTRONICS: HOUSEHOLD APPLIANCES (0.7%)
Matsushita Electric Industrial
Co., Ltd. ADR................... 125,000 1,728,750
Whirlpool Corp. .................. 10,000 653,600
---------------
2,382,350
---------------
ELECTRONICS: SEMICONDUCTORS (1.3%)
*Atmel Corp. ..................... 125,000 782,500
*Flextronics International
Ltd. ........................... 50,000 356,500
*Micron Technology, Inc. ......... 75,000 1,516,500
Texas Instruments, Inc. .......... 75,000 1,777,500
---------------
4,433,000
---------------
ELECTRONICS: TECHNOLOGY (0.5%)
Raytheon Co. ..................... 40,000 1,630,000
---------------
ENGINEERING & CONTRACT SERVICES (0.9%)
Fluor Corp........................ 50,000 1,947,500
*URS Corp......................... 37,000 1,028,600
---------------
2,976,100
---------------
ENTERTAINMENT (0.3%)
Disney, Walt Co., The............. 50,000 945,000
---------------
FERTILIZERS (0.1%)
IMC Global, Inc. ................. 40,000 500,000
---------------
FOODS (2.4%)
*Chiquita Brands International,
Inc. ........................... 125,000 2,238,750
*Hain Celestial Group, Inc. ...... 20,000 370,000
Heinz, H.J. Co. .................. 40,000 1,644,000
Sara Lee Corp. ................... 50,000 1,032,000
Tyson Foods, Inc. (Class A)....... 30,000 465,300
Unilever NV....................... 40,000 2,592,000
---------------
8,342,050
---------------
See Accompanying Notes to Financial Statements
57
SCHEDULE OF INVESTMENTS
--------------------------------------------------------------------------------
[Download Table]
COLUMBIA STRATEGIC VALUE FUND (CONT.)
JUNE 30, 2002 (UNAUDITED) SHARES VALUE
-----------------------------------------------------------------------
FOREST PRODUCTS (0.4%)
Longview Fibre Co. ............... 50,000 $ 471,000
Louisiana-Pacific Corp. .......... 75,000 793,500
---------------
1,264,500
---------------
GOLD (0.3%)
Newmont Mining Corp. ............. 40,000 1,053,200
---------------
HEALTH CARE MANAGEMENT SERVICES (0.1%)
*WebMD Corp. ..................... 75,000 422,250
---------------
HOTEL/MOTEL (0.4%)
Hilton Hotels Corp. .............. 100,000 1,390,000
---------------
HOUSEHOLD FURNISHINGS (1.2%)
Ekornes ASA....................... 152,000 1,914,166
Newell Rubbermaid, Inc. .......... 62,500 2,191,250
---------------
4,105,416
---------------
IDENTIFICATION CONTROL (0.3%)
Parker Hannifin Corp. ............ 20,000 955,800
---------------
INSURANCE: LIFE (2.2%)
*Anthem, Inc. .................... 37,500 2,520,750
*Principal Financial Group,
Inc. ........................... 87,500 2,712,500
*Prudential Financial, Inc. ...... 67,500 2,251,800
---------------
7,485,050
---------------
INSURANCE: MULTI-LINE (2.7%)
American International Group,
Inc. ........................... 50,000 3,411,500
*Millea Holdings, Inc. ADR........ 40,000 1,630,000
SAFECO Corp. ..................... 50,000 1,544,500
St. Paul Companies, Inc., The..... 30,000 1,167,600
*UICI............................. 75,000 1,512,000
---------------
9,265,600
---------------
INVESTMENT MANAGEMENT COMPANIES (0.6%)
Japan Smaller Capitalization Fund,
Inc. ........................... 225,000 1,797,750
Tracker Fund of Hong Kong......... 300,000 411,540
---------------
2,209,290
---------------
JEWELRY WATCHES & GEMSTONES (0.4%)
Friedman's, Inc. (Class A)........ 100,000 1,299,900
---------------
MACHINERY: AGRICULTURAL (0.1%)
CNH Global NV..................... 125,000 503,750
---------------
MACHINERY: CONSTRUCTION & HANDLING (1.8%)
Caterpillar, Inc. ................ 87,500 4,283,125
Stewart & Stevenson Services,
Inc. ........................... 75,000 1,330,500
*Terex Corp. ..................... 30,000 674,700
---------------
6,288,325
---------------
[Download Table]
-----------------------------------------------------------------------
SHARES VALUE
MACHINERY: INDUSTRIAL/SPECIALTY (0.7%)
*ABB Ltd. ADR..................... 75,000 $ 675,000
Hitachi Ltd. ADR.................. 25,000 1,604,250
---------------
2,279,250
---------------
MACHINERY: OIL WELL EQUIPMENT & SERVICES (3.4%)
*Core Laboratories NV ............ 60,000 721,200
*FMC Technologies, Inc. .......... 75,000 1,542,750
Helmerich & Payne, Inc. .......... 50,000 1,786,000
*Newpark Resources, Inc. ......... 175,000 1,286,250
Rowan Companies, Inc. ............ 100,000 2,145,000
Schlumberger Ltd. ................ 40,000 1,860,000
*Universal Compression Holdings,
Inc. ........................... 100,000 2,399,000
---------------
11,740,200
---------------
MACHINERY: SPECIALTY (0.6%)
Constellation Energy Group,
Inc. ........................... 25,000 733,500
JLG Industries, Inc. ............. 50,000 701,500
*Joy Global, Inc. ................ 40,000 709,600
---------------
2,144,600
---------------
MEDICAL & DENTAL SUPPLIES (1.6%)
Bausch & Lomb, Inc. .............. 75,000 2,538,750
Becton Dickinson & Co. ........... 40,000 1,378,000
*Boston Scientific Corp. ......... 50,000 1,466,000
---------------
5,382,750
---------------
METAL FABRICATING (0.8%)
Intermet Corp. ................... 50,000 537,000
*Stelco, Inc. (Class A)........... 175,000 602,936
Timken Co., The................... 75,000 1,674,750
---------------
2,814,686
---------------
METALS & MINERALS MISCELLANEOUS (0.2%)
*Stillwater Mining Co. ........... 40,000 635,200
---------------
MISCELLANEOUS MATERIALS & PROCESSING (0.3%)
Cameco Corp. ..................... 40,000 1,026,000
---------------
MULTI-SECTOR COMPANIES (2.5%)
3M Co. ........................... 32,500 3,997,500
Eaton Corp. ...................... 20,000 1,455,000
Honeywell International, Inc. .... 45,000 1,585,350
*SPX Corp. ....................... 12,500 1,468,750
---------------
8,506,600
---------------
OFFSHORE DRILLING (0.8%)
*Precision Drilling Corp. ........ 65,000 2,258,100
Saipem S.p.A. .................... 75,000 539,243
---------------
2,797,343
---------------
See Accompanying Notes to Financial Statements
58
SCHEDULE OF INVESTMENTS
--------------------------------------------------------------------------------
[Download Table]
SHARES VALUE
-----------------------------------------------------------------------
OIL: CRUDE PRODUCERS (1.3%)
*Chesapeake Energy Corp. ......... 100,000 $ 720,000
*EEX Corp. ....................... 200,000 400,000
*Encore Acquisition Co. .......... 100,000 1,725,000
*Forest Oil Corp. ................ 40,000 1,132,400
*Statoil ASA ADR ................. 60,000 529,200
---------------
4,506,600
---------------
OIL: INTEGRATED DOMESTIC (0.3%)
Unocal Corp. ..................... 30,000 1,108,200
---------------
OIL: INTEGRATED INTERNATIONAL (0.8%)
Conoco, Inc. ..................... 30,000 834,000
Encana Corp. ..................... 25,000 765,000
Petroleo Brasileiro SA ADR -
Petrobras....................... 57,500 1,084,450
---------------
2,683,450
---------------
PAINTS & COATINGS (0.4%)
Fuller, H.B. Co. ................. 50,000 1,464,500
---------------
PAPER (1.8%)
Abitibi-Consolidated, Inc. ....... 175,000 1,615,250
*Buckeye Technologies, Inc. ...... 125,000 1,250,000
International Paper Co. .......... 30,000 1,307,400
MeadWestvaco Corp. ............... 40,000 1,342,400
Sappi Ltd. ADR.................... 50,000 700,000
---------------
6,215,050
---------------
PHOTOGRAPHY (0.3%)
Eastman Kodak Co. ................ 37,500 1,093,875
---------------
POLLUTION CONTROL & ENVIRONMENTAL SERVICES (0.2%)
*Ionics, Inc. .................... 30,000 727,500
---------------
PRODUCTION TECHNOLOGY EQUIPMENT (1.6%)
*Agilent Technologies, Inc. ...... 40,000 955,200
*Axcelis Technologies, Inc. ...... 75,000 861,000
*FEI Co. ......................... 100,000 2,451,000
Millipore Corp. .................. 40,000 1,279,200
---------------
5,546,400
---------------
PUBLISHING: MISCELLANEOUS (0.6%)
Donnelley, R.R. & Sons Co. ....... 30,000 826,500
Nelson, Thomas, Inc. ............. 30,000 316,800
Reader's Digest Association, Inc.
(Class A)....................... 50,000 936,500
---------------
2,079,800
---------------
PUBLISHING: NEWSPAPERS (0.3%)
Belo Corp. (Class A).............. 44,000 994,840
---------------
[Download Table]
-----------------------------------------------------------------------
SHARES VALUE
RADIO & TELEVISION BROADCASTERS (0.5%)
*Emmis Communications Corp. (Class
A).............................. 50,000 $ 1,059,500
*Sinclair Broadcast Group, Inc.
(Class A)....................... 40,000 577,560
---------------
1,637,060
---------------
RAILROADS (0.7%)
Norfolk Southern Corp. ........... 100,000 2,338,000
---------------
REAL ESTATE INVESTMENT TRUSTS (REITS) (1.3%)
Crescent Real Estate Equities
Co. ............................ 75,000 1,402,500
*La Quinta Corp. ................. 150,000 1,068,000
ProLogis.......................... 75,000 1,950,000
---------------
4,420,500
---------------
RECREATIONAL VEHICLES & BOATS (0.2%)
Fleetwood Enterprises, Inc. ...... 75,000 652,500
---------------
RESTAURANTS (1.0%)
CBRL Group, Inc. ................. 20,000 610,400
McDonald's Corp. ................. 100,000 2,845,000
---------------
3,455,400
---------------
RETAIL (4.0%)
*American Eagle Outfitters,
Inc. ........................... 75,000 1,585,500
*Borders Group, Inc. ............. 75,000 1,380,000
Circuit City Group................ 100,000 1,875,000
Dillard's, Inc. (Class A)......... 100,000 2,629,000
Dollar General Corp. ............. 75,000 1,427,250
*Galyan's Trading Co. ............ 20,000 445,200
Gap, Inc., The.................... 125,000 1,775,000
Stockmann Oyj Abp (Class B)....... 50,000 627,140
Talbots, Inc., The................ 40,000 1,400,000
*United Natural Foods, Inc. ...... 30,000 585,000
---------------
13,729,090
---------------
SAVINGS & LOAN (0.2%)
*Bay View Capital Corp. .......... 100,000 641,000
---------------
SECURITY BROKERAGE & SERVICES (0.4%)
Bear Stearns Companies, Inc. ..... 20,000 1,221,000
---------------
SERVICES: COMMERCIAL (1.0%)
*Cendant Corp. ................... 100,000 1,588,000
Central Parking Corp. ............ 40,000 917,600
*Tetra Tech, Inc. ................ 75,000 1,102,500
---------------
3,608,100
---------------
SHIPPING (1.0%)
Alexander & Baldwin, Inc. ........ 40,000 1,021,200
Finnlines Oyj..................... 69,700 1,817,309
*Stelmar Shipping Ltd. ........... 50,000 742,000
---------------
3,580,509
---------------
See Accompanying Notes to Financial Statements
59
SCHEDULE OF INVESTMENTS
--------------------------------------------------------------------------------
[Download Table]
COLUMBIA STRATEGIC VALUE FUND (CONT.)
JUNE 30, 2002 (UNAUDITED) SHARES OR
PRINCIPAL
AMOUNT VALUE
-----------------------------------------------------------------------
STEEL (0.4%)
*Oregon Steel Mills, Inc. ........ 87,500 $ 525,000
*Steel Dynamics, Inc. ............ 50,000 823,500
---------------
1,348,500
---------------
TELECOMMUNICATION EQUIPMENT (0.1%)
*Andrew Corp. .................... 30,000 429,900
---------------
TIRES & RUBBER (1.0%)
Cooper Tire & Rubber Co. ......... 50,000 1,027,500
Nokian Renkaat Oyj................ 69,000 2,316,972
---------------
3,344,472
---------------
TOBACCO (0.4%)
Philip Morris Companies, Inc. .... 30,000 1,310,400
---------------
TRUCKERS (0.2%)
*Consolidated Freightways
Corp. .......................... 175,000 572,250
---------------
UTILITIES: ELECTRICAL (0.8%)
IDACORP, Inc. .................... 20,000 550,200
NiSource, Inc. ................... 60,000 1,309,800
Xcel Energy, Inc. ................ 50,000 838,500
---------------
2,698,500
---------------
UTILITIES: GAS PIPELINE (0.2%)
El Paso Corp. .................... 42,300 871,803
---------------
UTILITIES: TELECOMMUNICATIONS (1.1%)
+AT&T Corp. ...................... 400,000 1,540,000
Hellenic Telecommunications Or-
ganization SA ADR............... 50,000 390,500
Mobile Telesystems OJSC ADR....... 20,000 605,800
PT. Telekomunikasi Indonesia, Tbk.
ADR............................. 150,000 1,320,000
---------------
3,856,300
---------------
Total Common Stocks
(Cost $242,889,941)................. 254,872,754
---------------
PREFERRED STOCK (0.5%)
COMMUNICATIONS & MEDIA
News Corporation Ltd., The ADR
(Cost $1,939,413)............... 85,000 1,678,750
---------------
REPURCHASE AGREEMENTS (25.0%)
J.P. Morgan Securities, Inc.
1.85% Dated 06/28/2002, due
07/01/2002 in the amount of
$35,927,095. Collateralized by
U.S. Treasury Bills due
07/05/2002 to 11/29/2014 U.S.
Treasury Strips due 02/15/2010
to 08/15/2028................... $ 35,921,626 35,921,626
[Download Table]
-----------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
++Merrill Lynch
1.80% dated 06/28/2002, due
07/01/2002 in the amount of
$50,057,405. Collateralized by
U.S. Treasury Strips due
08/15/2012 to 08/15/2017........ $ 50,050,000 $ 50,050,000
---------------
Total Repurchase Agreements (Cost
$85,971,626)........................ 85,971,626
---------------
TOTAL INVESTMENTS (99.8%) (Cost
$330,800,980)....................... 342,523,130
OTHER ASSETS LESS LIABILITIES
(0.2%).............................. 554,737
---------------
NET ASSETS (100.0%).................. $ 343,077,867
===============
* Non-income producing
+ This security purchased on when-issued basis.
++ A portion of this security was segregated at the custodian to cover a
when-issued security.
[Download Table]
COLUMBIA BALANCED FUND
JUNE 30, 2002 (UNAUDITED) SHARES VALUE
-----------------------------------------------------------------------
COMMON STOCKS (57.6%)
ADVERTISING AGENCIES (0.4%)
Interpublic Group of Companies,
Inc., The....................... 122,300 $ 3,028,148
---------------
AEROSPACE (0.7%)
United Technologies Corp. ........ 84,600 5,744,340
---------------
AUTO PARTS: ORIGINAL EQUIPMENT (0.4%)
Magna International, Inc. (Class
A).............................. 52,300 3,600,855
---------------
AUTOMOBILES (0.3%)
General Motors Corp. ............. 51,600 2,758,020
---------------
BANKS (2.3%)
Bank of America Corp. ............ 155,310 10,927,612
Bank One Corp. ................... 196,550 7,563,244
---------------
18,490,856
---------------
BANKS: NEW YORK CITY (1.1%)
J.P. Morgan Chase & Co. .......... 261,740 8,878,221
---------------
BEVERAGE: SOFT DRINKS (0.3%)
Pepsi Bottling Group, Inc. ....... 70,400 2,168,320
---------------
BIOTECH RESEARCH & PRODUCTS (1.4%)
*Amgen, Inc. ..................... 63,200 2,646,816
Baxter International, Inc. ....... 195,000 8,665,800
---------------
11,312,616
---------------
See Accompanying Notes to Financial Statements
60
SCHEDULE OF INVESTMENTS
--------------------------------------------------------------------------------
[Download Table]
SHARES VALUE
-----------------------------------------------------------------------
CABLE TELEVISION SERVICES (0.7%)
*Liberty Media Corp. (Class A).... 586,028 $ 5,860,280
---------------
CHEMICALS (1.3%)
DuPont, E.I. de Nemours & Co. .... 121,000 5,372,400
Praxair, Inc. .................... 88,400 5,036,148
---------------
10,408,548
---------------
COMMUNICATIONS & MEDIA (0.4%)
*AOL Time Warner, Inc. ........... 212,087 3,119,800
---------------
COMMUNICATIONS TECHNOLOGY (0.9%)
*Cisco Systems, Inc. ............. 303,800 4,238,010
Motorola, Inc. ................... 191,800 2,765,756
---------------
7,003,766
---------------
COMPUTER SERVICES SOFTWARE & SYSTEMS (2.1%)
Adobe Systems, Inc. .............. 52,075 1,484,138
*Intuit, Inc. .................... 37,025 1,840,883
*Microsoft Corp. ................. 206,800 11,311,960
*Oracle Corp. .................... 223,900 2,120,333
---------------
16,757,314
---------------
COMPUTER TECHNOLOGY (1.0%)
*Apple Computer, Inc. ............ 227,750 4,035,730
Hewlett-Packard Co. .............. 197,900 3,023,912
*Sun Microsystems, Inc. .......... 258,100 1,293,081
---------------
8,352,723
---------------
CONSUMER PRODUCTS (1.0%)
Alberto-Culver Co. (Class B)...... 23,800 1,137,640
Gillette Co. ..................... 197,100 6,675,777
---------------
7,813,417
---------------
COSMETICS (0.3%)
Lauder, Estee Companies, Inc., The
(Class A)....................... 65,900 2,319,680
---------------
DIVERSIFIED FINANCIAL SERVICES (4.3%)
American Express Co. ............. 267,150 9,702,888
Citigroup, Inc. .................. 465,993 18,057,229
Marsh & McLennan Companies,
Inc. ........................... 35,800 3,458,280
Merrill Lynch & Co., Inc. ........ 60,850 2,464,425
Morgan Stanley.................... 34,800 1,499,184
---------------
35,182,006
---------------
DRUGS & PHARMACEUTICALS (6.1%)
Abbott Laboratories............... 119,750 4,508,587
AmerisourceBergen Corp. .......... 66,500 5,054,000
Bristol-Myers Squibb Co. ......... 176,369 4,532,683
*MedImmune, Inc. ................. 63,000 1,663,200
Pfizer, Inc. ..................... 509,350 17,827,250
[Download Table]
-----------------------------------------------------------------------
SHARES VALUE
Pharmacia Corp. .................. 283,500 $ 10,617,075
Teva Pharmaceutical Industries
Ltd. ADR........................ 76,125 5,083,628
---------------
49,286,423
---------------
ELECTRONICS: EQUIPMENT & COMPONENTS (0.4%)
Koninklijke Philips Electronics
NV.............................. 109,600 3,024,960
---------------
ELECTRONICS: SEMICONDUCTORS (1.1%)
*Atmel Corp. ..................... 203,200 1,272,032
Intel Corp. ...................... 44,050 804,794
*Microchip Technology, Inc. ...... 32,900 902,447
*Micron Technology, Inc. ......... 49,200 994,824
*National Semiconductor Corp. .... 171,150 4,992,445
---------------
8,966,542
---------------
ELECTRONICS: TECHNOLOGY (0.7%)
Raytheon Co. ..................... 133,800 5,452,350
---------------
ENTERTAINMENT (0.7%)
*Viacom, Inc. (Class B)........... 123,700 5,488,569
---------------
FINANCE COMPANIES (0.2%)
Capital One Financial Corp. ...... 32,500 1,984,125
---------------
FINANCE: SMALL LOAN (0.4%)
SLM Corp. ........................ 36,700 3,556,230
---------------
FINANCIAL DATA PROCESSING SERVICES (0.8%)
Automatic Data Processing,
Inc. ........................... 25,550 1,112,702
First Data Corp. ................. 142,600 5,370,316
---------------
6,483,018
---------------
FINANCIAL MISCELLANEOUS (0.8%)
Freddie Mac....................... 42,650 2,610,180
MBNA Corp. ....................... 124,900 4,130,443
---------------
6,740,623
---------------
FOODS (0.2%)
Sara Lee Corp. ................... 93,700 1,933,968
---------------
FOREST PRODUCTS (0.3%)
Weyerhaeuser Co. ................. 38,800 2,477,380
---------------
HEALTH CARE FACILITIES (1.1%)
HCA, Inc. ........................ 47,600 2,261,000
*HEALTHSOUTH Corp. ............... 145,600 1,862,224
*Laboratory Corporation of America
Holdings........................ 104,600 4,774,990
---------------
8,898,214
---------------
HEALTH CARE MANAGEMENT SERVICES (0.2%)
Aetna, Inc. ...................... 31,300 1,501,461
---------------
See Accompanying Notes to Financial Statements
61
SCHEDULE OF INVESTMENTS
--------------------------------------------------------------------------------
[Download Table]
COLUMBIA BALANCED FUND (CONT.)
JUNE 30, 2002 (UNAUDITED) SHARES VALUE
-----------------------------------------------------------------------
INSURANCE: LIFE (1.2%)
*Anthem, Inc. .................... 47,500 $ 3,192,950
*Principal Financial Group,
Inc. ........................... 119,900 3,716,900
*Prudential Financial, Inc. ...... 71,600 2,388,576
---------------
9,298,426
---------------
INSURANCE: MULTI-LINE (1.3%)
American International Group,
Inc. ........................... 149,762 10,218,261
---------------
INSURANCE: PROPERTY-CASUALTY (0.8%)
*Berkshire Hathaway, Inc. (Class
A).............................. 45 3,006,000
Chubb Corp. ...................... 44,050 3,118,740
---------------
6,124,740
---------------
LEISURE TIME (0.4%)
Carnival Corp. ................... 126,800 3,511,092
---------------
MACHINERY: OIL WELL EQUIPMENT & SERVICES (0.8%)
GlobalSantaFe Corp. .............. 84,150 2,301,503
*Noble Corp. ..................... 66,500 2,566,900
Rowan Companies, Inc. ............ 72,600 1,557,270
---------------
6,425,673
---------------
MACHINERY: SPECIALTY (0.2%)
Constellation Energy Group,
Inc. ........................... 46,800 1,373,112
---------------
MEDICAL & DENTAL SUPPLIES (0.6%)
Beckman Coulter, Inc. ............ 91,250 4,553,375
---------------
MISCELLANEOUS EQUIPMENT (0.3%)
Grainger, W.W., Inc. ............. 48,550 2,432,355
---------------
MULTI-SECTOR COMPANIES (4.7%)
3M Co. ........................... 69,350 8,530,050
Eaton Corp. ...................... 16,700 1,214,925
General Electric Co. ............. 388,900 11,297,545
Honeywell International, Inc. .... 158,400 5,580,432
Illinois Tool Works, Inc. ........ 61,400 4,231,688
ITT Industries, Inc. ............. 27,900 1,969,740
*SPX Corp. ....................... 38,850 4,564,875
Tyco International Ltd. .......... 29,002 391,817
---------------
37,781,072
---------------
OIL: CRUDE PRODUCERS (1.3%)
Apache Corp. ..................... 64,780 3,723,554
Devon Energy Corp. ............... 71,300 3,513,664
EOG Resources, Inc. .............. 83,100 3,299,070
---------------
10,536,288
---------------
OIL: INTEGRATED DOMESTIC (0.2%)
Phillips Petroleum Co. ........... 33,350 1,963,648
---------------
[Download Table]
-----------------------------------------------------------------------
SHARES VALUE
OIL: INTEGRATED INTERNATIONAL (2.1%)
ChevronTexaco Corp. .............. 22,050 $ 1,951,425
Exxon Mobil Corp. ................ 274,159 11,218,586
Royal Dutch Petroleum Co. ........ 75,200 4,156,304
---------------
17,326,315
---------------
PAPER (0.6%)
Bowater, Inc. .................... 33,600 1,826,832
International Paper Co. .......... 64,000 2,789,120
---------------
4,615,952
---------------
PRODUCTION TECHNOLOGY EQUIPMENT (1.2%)
*Applied Materials, Inc. ......... 125,400 2,385,108
*Taiwan Semiconductor
Manufacturing Company Ltd. ADR.. 381,975 4,965,675
*United Microelectronics Corp.
ADR............................. 338,000 2,484,300
---------------
9,835,083
---------------
RADIO & TELEVISION BROADCASTERS (0.3%)
*Clear Channel Communications,
Inc. ........................... 70,600 2,260,612
---------------
RAILROADS (0.3%)
Union Pacific Corp. .............. 43,650 2,762,172
---------------
RESTAURANTS (0.8%)
McDonald's Corp. ................. 217,700 6,193,565
---------------
RETAIL (4.9%)
Circuit City Group................ 276,800 5,190,000
Gap, Inc., The.................... 502,400 7,134,080
*Kohl's Corp. .................... 83,150 5,827,152
Nordstrom, Inc. .................. 126,600 2,867,490
Sears, Roebuck & Co. ............. 79,700 4,327,710
Wal-Mart Stores, Inc. ............ 259,850 14,294,349
---------------
39,640,781
---------------
SECURITY BROKERAGE & SERVICES (0.4%)
Franklin Resources, Inc. ......... 70,800 3,018,912
---------------
SERVICES: COMMERCIAL (1.2%)
*Accenture Ltd. (Class A)......... 180,000 3,420,000
Waste Management, Inc. ........... 252,700 6,582,835
---------------
10,002,835
---------------
TOBACCO (0.5%)
Carolina Group.................... 52,850 1,429,592
UST, Inc. ........................ 86,800 2,951,200
---------------
4,380,792
---------------
TRANSPORTATION MISCELLANEOUS (0.4%)
United Parcel Service, Inc. (Class
B).............................. 56,000 3,458,000
---------------
UTILITIES: CABLE TELEVISION & RADIO (0.5%)
*Comcast Corp. (Class A
Special)........................ 183,700 4,379,408
---------------
See Accompanying Notes to Financial Statements
62
SCHEDULE OF INVESTMENTS
--------------------------------------------------------------------------------
[Download Table]
SHARES OR
PRINCIPAL
AMOUNT VALUE
-----------------------------------------------------------------------
UTILITIES: TELECOMMUNICATIONS (0.7%)
AT&T Corp. ....................... 119,500 $ 1,278,650
SBC Communications, Inc. ......... 141,950 4,329,475
---------------
5,608,125
---------------
Total Common Stocks
(Cost $456,190,867)................. 466,293,367
---------------
PREFERRED STOCK (0.7%)
COMMUNICATIONS & MEDIA
News Corporation Ltd., The ADR
(Cost $6,341,188)............... 275,275 5,436,681
---------------
BONDS (40.8%)
U.S. GOVERNMENT SECURITIES (16.3%)
U.S. TREASURY BILLS (0.8%)
1.73% 08/01/2002.................. $ 6,700,000 6,690,713
---------------
U.S. TREASURY NOTES & BONDS (3.1%)
U.S. Treasury Bonds
8.875% 08/15/2017............... 6,420,000 8,661,395
6.25% 08/15/2023................ 7,835,000 8,397,083
U.S. Treasury Inflation Index
Bonds
3.375% 01/15/2007............... 7,829,016 8,145,849
---------------
25,204,327
---------------
U.S. AGENCY BONDS (1.8%)
Federal Home Loan Bank
5.375% 01/05/2004............... 8,475,000 8,812,220
Federal National Mortgage
Association
7.125% 01/15/2030............... 5,385,000 6,030,177
---------------
14,842,397
---------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) (4.8%)
6.50% 06/15/2031 - 01/15/2032..... 12,692,813 12,979,391
7.00% 02/15/2028 - 05/15/2032..... 24,684,758 25,689,501
---------------
38,668,892
---------------
FEDERAL HOME LOAN MORTGAGE CORP. (FHLMC) (0.8%)
6.50% 09/01/2031 - 05/01/2032..... 5,900,564 6,029,810
---------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) (2.0%)
6.00% 09/01/2016 - 06/01/2017..... 6,675,302 6,818,400
+6.15% 06/25/2032................. 1,807,928 1,846,685
7.00% 07/01/2031 - 02/01/2032..... 7,454,484 7,730,971
---------------
16,396,056
---------------
FEDERAL HOUSING ADMINISTRATION (FHA) (0.2%)
FHA Insured Project Pool #53-43077
9.125% 07/25/2033............... 1,564,319 1,597,405
---------------
AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS (2.8%)
FNMA Gtd. Remic Pass Thru Ctf.
Remic Tr. 1997-68 Cl. PJ
7.00% 10/18/2027................ 3,000,000 3,029,235
[Download Table]
-----------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
Remic Tr. 2002-8 Cl. PD
6.50% 07/25/2030................ $ 3,480,000 $ 3,540,298
Remic Tr. 2001-56 Cl. KD
6.50% 07/25/2030................ 2,260,000 2,336,680
Remic Tr. 2002-27 Cl. OG
6.50% 12/25/2030................ 1,570,000 1,613,575
Remic Tr. 2001-55 Cl. PC
6.50% 10/25/2031................ 5,090,000 5,153,934
FHLMC Multiclass Mtg. Partn. Ctfs.
Gtd. Series 2235 Cl. VN
7.00% 06/15/2014................ 3,980,000 4,244,786
Gtd. Series 2065 Cl. PB
6.25% 01/15/2024................ 1,083,000 1,126,656
Gtd. Series 2462 Cl. JE
6.50% 11/15/2030................ 1,610,000 1,659,749
---------------
22,704,913
---------------
Total U.S. Government Securities
(Cost $128,717,434)................. 132,134,513
---------------
CORPORATE NOTES & BONDS (16.1%)
INDUSTRIAL (8.2%)
Alcan, Inc.
7.25% 03/15/2031................ 1,135,000 1,208,662
Alcoa, Inc., Series B
6.50% 06/15/2018................ 1,100,000 1,096,172
Allied Waste North America, Inc.
Series B
10.00% 08/01/2009............... 1,000,000 982,500
American Home Products Corp.
6.25% 03/15/2006................ 1,670,000 1,782,591
Anadarko Finance Co., Series B
7.50% 05/01/2031................ 2,000,000 2,129,380
Ball Corp.
7.75% 08/01/2006................ 850,000 878,687
Burlington Northern Sante Fe Corp.
7.125% 12/15/2010............... 2,150,000 2,318,152
Canadian National Railway Co.
6.45% 07/15/2006................ 675,000 713,306
Series 1997-A2
7.195% 01/02/2016............... 1,188,720 1,241,273
Charter Communications Holdings
L.L.C./Charter Communications
Holdings Capital Corp.
8.25% 04/01/2027................ 2,000,000 1,340,000
Coca-Cola Enterprises, Inc.
6.75% 01/15/2038................ 1,045,000 1,046,494
Coors Brewing Co. (144A)
6.375% 05/15/2012............... 900,000 927,790
Cott Beverages, Inc.
8.00% 12/15/2011................ 500,000 507,500
See Accompanying Notes to Financial Statements
63
SCHEDULE OF INVESTMENTS
--------------------------------------------------------------------------------
[Download Table]
COLUMBIA BALANCED FUND (CONT.)
JUNE 30, 2002 (UNAUDITED)
PRINCIPAL
AMOUNT VALUE
-----------------------------------------------------------------------
Cox Enterprises, Inc. (144A)
8.00% 02/15/2007................ $ 2,100,000 $ 2,109,706
CSC Holdings, Inc.
7.875% 12/15/2007............... 1,250,000 1,006,325
Devon Financing Corp. U.L.C.
6.875 09/30/2011................ 1,550,000 1,616,986
Diageo Capital plc
6.625% 06/24/2004............... 3,000,000 3,191,190
Dow Chemical Co.
7.375% 11/01/2029............... 1,030,000 1,089,277
Federal Express Corp. Pass Thru
Trust Series 1997-1C
7.65% 01/15/2014................ 1,863,410 1,917,039
Harrah's Operating Co., Inc.
7.875% 12/15/2005............... 500,000 515,000
HCA-The Healthcare Co.
6.91% 06/15/2005................ 1,450,000 1,493,036
Honeywell International, Inc.
7.50% 03/01/2010................ 2,120,000 2,360,832
International Paper Co.
8.00% 07/08/2003................ 1,700,000 1,777,792
6.75% 09/01/2011................ 1,000,000 1,030,900
KB Home
8.625% 12/15/2008............... 1,000,000 1,015,000
Lear Corp. Series B
7.96% 05/15/2005................ 2,000,000 2,063,338
Lowe's Cos., Inc.
6.50% 03/15/2029................ 2,000,000 1,927,492
MeadWestvaco Corp.
6.85% 04/01/2012................ 1,100,000 1,156,912
Mediacom L.L.C./Mediacom Capital
Corp.
9.50% 01/15/2013................ 500,000 415,000
Omnicare, Inc.
8.125% 03/15/2011............... 1,000,000 1,035,000
Park Place Entertainment Corp.
9.375% 02/15/2007............... 1,825,000 1,911,688
Pennzoil-Quaker State Co.
10.00% 11/01/2008............... 500,000 588,125
Phillips Petroleum Co.
8.50% 05/25/2005................ 2,090,000 2,330,893
Pride International, Inc.
9.375% 05/01/2007............... 500,000 521,250
Procter & Gamble Co.
4.75% 06/15/2007................ 1,550,000 1,565,943
Select Medical Corp.
9.50% 06/15/2009................ 500,000 507,500
[Download Table]
-----------------------------------------------------------------------
PRINCIPAL
AMOUNT 